Shares in pharmaceutical companies gained despite a recommendation by a ministry panel to cap drug prices given the proposal is seen as less hurtful than expected.
A panel of ministers recommended capping prices for 348 drugs deemed essential by calculating the weighted average of the market prices of all the brands with more than 1 per cent market share.
The proposal, which will be forwarded to the cabinet within a week, is seen less disruptive than a cap based on cost-based pricing given the latter would have a more direct impact on profit margins.
Cipla gained 1.9 per cent, Glenmark Pharmaceuticals rose 0.8 per cent, GlaxoSmithKline Pharmaceutical advanced 0.8 per cent, while Lupin gained 0.2 per cent.
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