Most pharma stocks have seen appreciation as high as 50 per cent from end June todate. Any further sales in index heavyweights would mean substantial losses. This is one of the reasons why the sensex is still being held above the 2900-mark. Speculators may jump the gun even before FIIs actually press for sales in pharma stocks as it happened in a few IT stocks on Wednesday.

Among the top gainers in the pharma sector is Dr Reddy's Lab, which has risen by 56 per cent from Rs 343 (June-end) to Rs 535 now. Novartis and Rhone Poulenc have risen by over 50 per cent during the same period with their current price at Rs 460 and Rs 498, respectively.

Sun Pharma hasappreciated by over 30 per cent to Rs 302, while Wockhardt has seen a rise of 45 per cent to Rs 278.

Between June-end and now, German Remedies (47 per cent), Burroughs Welcome (30 per cent), Glaxo India (18 per cent), Parke Davis (37 per cent) and Pfizer (17.74) per cent offer enough room for speculators to book profits. In a market hit by uncertainty and renewed fears of recession, these stocks are viewed as defensive ones. As a result, they also offer excellent cushioning to make good part of the losses elsewhere in the market.