What Pfizer-Mylan Potential Merger Means For Indian Pharma; Can ICICI Bank Stock Continue To Fly

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Pfizer’s Upjohn and Mylan combining forces hold lessons for Indian pharma majors

A large merger in the US pharma market will have ripple effects on Indian generic drug makers. Pfizer’s off-patent business nicknamed Upjohn is to be merged with generic major Mylan. The combined unit will have scale, slightly better bargaining power, lower costs and more muscle to compete in markets such as China. There are two ways of how this could affect Indian drug makers.

ICICI Bank: Is there juice left in the rally?

ICICI Bank has been one of the best-performing stocks in the Nifty index in the last 12 months. While the Nifty was flat, ICICI bank gained 42 percent as the bank’s bad loan ratios improved. Now, it has made a good start to the fiscal year 2020. It has swung to profitability, improved its provision cover (the money set aside against bad loans) and has a strong balance sheet with enough capital for growth. But are these factors enough for the stock to continue rallying?

Learn with Moneycontrol—What is Momentum Investing?

When we see a stock rallying, and people minting money from it, we feel like carving out a piece of the gains for ourselves too. This is called momentum investing, wherein an investor invests in a stock which has shown recent positive momentum. This is done under the premise that stocks on an upward trajectory will continue to appreciate. This holds true to an extent because it becomes a self-fulfilling prophecy—as more and more people invest in an already rallying stock, it appreciates even further, thus attracting even more investors. But how safe a strategy is this? How does this compare with other investment strategies? Click here to find out. – First Post