Major Pharma companies are posting healthy gains at the Markets today. Know why

Major Pharma companies posted smart gains as the Rupee weakened versus the Dollar and traders latched on to companies that have a large part of their turnover coming from overseas.

The Rupee fell to a 2-year low against the Dollar, hitting its lowest value since Sept 9, 2013, after China, on Tuesday, announced a 2 percent depreciation in its Yuan in a bid to boost its economy. Beijing let the Yuan weaken further today as well.

A weak Rupee boosts the value of overseas sales and profit, which is more than visible on large cap and mid cap pharma stocks. As a consequence, Jubilant Life Sciences jumped 5 percent to 327.85 rupees. Sun Pharma surged 4.5 percent to 880. Claris rose 4.5 percent to 230. Cadila Healthcare added 3.4 percent to 1983 rupees, Lupin was up 2.1 percent to 1,732 rupees and IPCA rose 1.8 percent to 776 rupees.

Top pharma majors get nearly 50-60 percent of their sales from overseas, mainly from the US geography.

Image credit: Indiatimes