BSE Health Care (HC) index of 17 major pharmaceutical companies has touched its 52-weeks peak level at 5945.95 points on account of strong buying support as against its yearly low of 4028.48 points in last September. Ranbaxy Laboratories, Sun Pharmaceutical Industries and Aurobindo Pharma reached at their 52-weeks highest level at Rs. 561.95, Rs. 1942.15 and Rs. 1110 respectively. Similarly, few important scrips like Apollo Hospitals, Biocon and Opto Circuits also reached at peak level during September 2010.

The BSE Sensex crossed the benchmark of 20,000 today as against all time high at 21,206.77 on January 10, 2008 and closed at 20001.55. The BSE HC index moved up by 18.2 per cent between January and September 2010 as against BSE Sensex gain of 13.9 per cent during the same period Thus, the BSE HC outperform BSE Sensex and moved up faster with market capitalisation of Rs. 2,21,918 crore on September 21, 2010. Out of 17 pharma companies from BSE HC, 6 scrips moved up today as against 11 scrips declined on account of profit taking as compared to previous day closing..

With the recovery in recessionary economic conditions and better than expected growth in top line as well as bottom line during the first quarter of 2010-11 assisted the gain for pharma companies. The net sales of 30 major pharma companies during the quarter ended June 2010 increased by 15.2 per cent to Rs. 15,801 crore as against Rs. 13,713 crore in the corresponding period of last year. There net profit has taken sharp jump of 34 per cent and touched to Rs. 2446 crore from Rs. 1826 crore. The financial performance has helped the scrip movements and several pharma companies reached to their yearly highest level during July-September. The pharma companies also rewarded their shareholders through higher dividends.

Despite global economic problem, India's leading 30 companies achieved exports (FOB basis) growth of 8.3 per cent during the year ended March 2010 to Rs. 25,292 crore as compared to Rs. 23,253 crore in the last year. Exports as percentage of standalone net sales remained same at 53 per cent. The R&D expenditure of 25 major pharma companies moved up by 4.2 per cent during the year ended March 2010 to Rs. 3,154 crore from Rs. 3,029 crore in the previous year. R&D expenditure as compared to standalone net sales worked out to 7.2 per cent. Thus, the pharma companies are set to overcome few odds like competition and volatile exchange rates through investment in R&D. The product in pipeline and higher approvals from regulated market is will help to boost business operations in the coming quarters.