Novartis India Shares Surge 10% on Market Recovery
Novartis India’s share price surged nearly 10% on Monday, October 5, aligning with a broader market recovery in India. The Nifty 50 had just ended its longest weekly losing streak in 25 years, with easing oil prices and reduced concerns over US monetary tightening boosting investor sentiment. The stock opened at ₹2,001 on the BSE and peaked at ₹2,164.60 before closing lower.
Technical analysts offered mixed views on the stock’s performance. Rajesh Bhosale of My Advisor Alpha noted that while Novartis India opened with a gap-up, it lacked follow-up buying and fell back toward its intraday low. He suggested the stock needs to sustain above ₹2,100 to regain positive momentum, with strong support expected around ₹1,900. Sudeep Shah of SBI Securities highlighted that the stock remains above key moving averages on both daily and weekly charts, signaling a bullish trend. Shah identified the ₹1,910, ₹1,900 range as critical support.
Nuvama Institutional Equities views Novartis India as entering a new phase, transitioning from a partner-led model to direct commercialization. The company is deploying over 900 medical representatives to expand its reach, particularly in Tier-2 and Tier-3 markets. Nuvama also pointed to the recent acquisition of Minipress XL, which generated ₹2.28 billion in revenue over the past year, as part of a strategy to strengthen its chronic-therapy portfolio.
The brokerage expects FY27 to be a transition year as Novartis India invests in its new commercial model, incurring incremental operating expenses of ₹400-500 million per quarter. However, Nuvama anticipates margins improving to around 20% over the next two to three years as the benefits of this strategy take hold.