Dr. Reddy’s, Lupin shares among buzzing stocks as pharma sector back in focus
Market experts remain cautious as benchmark indices struggle, while stock-specific opportunities continue to outperform.
- Sep 21, 2026,
- Updated Sep 21, 2026 4:54 PM IST
With benchmark indices struggling to generate meaningful returns, market expert Aditya Agarwal has urged investors to shift their attention away from headline index moves and toward stock-specific opportunities. His core message is clear: the market may not be outright bearish, but the setup remains cautious enough for investors to be selective rather than broad-brush bullish.
“We are not very bearish on the market, but yes, we are a little bit cautious,” Agarwal said, adding that “one should right now focus more on stocks rather than indices.”
Stock pickers’ market takes centre stage
The view reflects a market phase in which benchmark performance has masked sharp divergences underneath. While Nifty has remained largely flat over recent months and has seen pressure on a year-to-date basis, several individual counters have continued to deliver outsized gains.
That divergence is especially visible in the broader market, where small-cap strength and stock-specific rallies have stood out despite a weak macro backdrop. Agarwal’s argument is that this pattern is not over yet, and that alpha generation is likely to come from careful sector and company selection rather than passive exposure to indices.
Pharma emerges as the preferred pocket
Among the sectors drawing renewed attention, pharma appears to be back on the radar. Agarwal said some pharmaceutical stocks that had corrected in recent weeks are now witnessing buying support at lower levels, signalling a possible reversal in sentiment.
“Some of the pharma stocks which were beaten down in last few weeks, stocks like Dr. Reddy's Laboratories Ltd, Lupin Ltd, both these stocks are seeing now buying interest at lower levels,” he said. He also noted that pharma as a sector has already outperformed the broader market, but select counters still appear to be attracting fresh interest.
Why the call matters now
The significance of this view lies in timing. Investors have been navigating a market where macro concerns have capped index upside, yet earnings resilience and valuation resets in select names have opened tactical entry points. In such an environment, sectors with defensive earnings characteristics and visible demand visibility often regain favour.
Pharma fits that template. Stocks such as Dr. Reddy’s and Lupin, after recent weakness, may appeal to investors looking for relative safety along with rebound potential. The broader takeaway from Agarwal’s strategy is that this is not a market to chase indiscriminately—it is a market to curate carefully.
For investors, that means the next leg of returns may come less from where the index goes and more from identifying where institutional buying quietly returns first.
With benchmark indices struggling to generate meaningful returns, market expert Aditya Agarwal has urged investors to shift their attention away from headline index moves and toward stock-specific opportunities. His core message is clear: the market may not be outright bearish, but the setup remains cautious enough for investors to be selective rather than broad-brush bullish.
“We are not very bearish on the market, but yes, we are a little bit cautious,” Agarwal said, adding that “one should right now focus more on stocks rather than indices.”
Stock pickers’ market takes centre stage
The view reflects a market phase in which benchmark performance has masked sharp divergences underneath. While Nifty has remained largely flat over recent months and has seen pressure on a year-to-date basis, several individual counters have continued to deliver outsized gains.
That divergence is especially visible in the broader market, where small-cap strength and stock-specific rallies have stood out despite a weak macro backdrop. Agarwal’s argument is that this pattern is not over yet, and that alpha generation is likely to come from careful sector and company selection rather than passive exposure to indices.
Pharma emerges as the preferred pocket
Among the sectors drawing renewed attention, pharma appears to be back on the radar. Agarwal said some pharmaceutical stocks that had corrected in recent weeks are now witnessing buying support at lower levels, signalling a possible reversal in sentiment.
“Some of the pharma stocks which were beaten down in last few weeks, stocks like Dr. Reddy's Laboratories Ltd, Lupin Ltd, both these stocks are seeing now buying interest at lower levels,” he said. He also noted that pharma as a sector has already outperformed the broader market, but select counters still appear to be attracting fresh interest.
Why the call matters now
The significance of this view lies in timing. Investors have been navigating a market where macro concerns have capped index upside, yet earnings resilience and valuation resets in select names have opened tactical entry points. In such an environment, sectors with defensive earnings characteristics and visible demand visibility often regain favour.
Pharma fits that template. Stocks such as Dr. Reddy’s and Lupin, after recent weakness, may appeal to investors looking for relative safety along with rebound potential. The broader takeaway from Agarwal’s strategy is that this is not a market to chase indiscriminately—it is a market to curate carefully.
For investors, that means the next leg of returns may come less from where the index goes and more from identifying where institutional buying quietly returns first.