New Delhi, Aug 25: The growing uncertainty in the market is driving investors to pharmaceutical and fast moving consumer goods (FMCG) stocks, which have once again shot into the limelight. At a time when the pivotals are struggling to hold on to their current levels, a number of pharma and FMCG scrips, especially the MNCs have been on a steady rise. Over the last five days most of these stocks have registered a gain of 10 to 15 per cent.On Tuesday, Smithkline Pharma zoomed by almost Rs 30 to Rs 392 before closing the day at Rs 380 on the National Stock Exchange (NSE). Over the last 10 days the stock has witnessed a considerable gain, rising from Rs 320 to the current price of 380. The stock was hammered from Rs 400 to a low of Rs 289 in early July after it went ex-bonus. Since then the stock has been inching back to the Rs 400-mark. Over 51,000 shares were traded on NSE.
The other group company, Smithkline Beecham Consumer too has been on the rise from Rs 430 to the current level of Rs 480 in less than six days. The scrip hit a new high of Rs 484.50 on the Bombay Stock Exchange before closing at Rs 476.25 on Monday. On Tuesday, it inched further to Rs 478.
Among the other FMCG stocks, Reckitt & Colman has attracted institutional investors in the past few sessions. Despite discouraging results after the sale of its `Dettol' brand to another joint venture, Reckitt & Colman's stock has gained over Rs 50 to the current level of Rs 360. The stock has been attracting relatively high trading volume. In the past few trading sessions, trading volumes have been over one lakh shares on the NSE alone.
Among the other prominent gainers are Burroughs Wellcome, Duphar-Interfran, E Merck (I), Glaxo (India), Knoll Pharma and Pfizer Limited. Burroughs Wellcome, which has been on the rise over the last five sessions, has gained around 15.8 per cent. The scrip hit a new high on Monday at Rs 472 on the BSE.
Knoll Pharma after going ex-bonus has again attracted huge buying interest and after going ex-bonus at Rs 374, the stock has shot up to Rs 410 on Monday in the past five trading sessions. A 1:1 liberal bonus resulting in its equity doubling has not deterred investors to buy this pharma stock which has a few good brands in its kitty.
Glaxo Limited after lagging for most of July has shot back into limelight in August and has seen active interest from foreign and domestic institutions. The stock has appreciated from Rs 380 to the current level of Rs 413 in the past six trading sessions.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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