Global investment house, CLSA, is turning distinctly bullish on Indian pharma and it is not the only global investor. Others like CITI and Morgan Stanley are also turning positive on Indian pharma. Earnings momentum for Indian drug makers will continue led by a gradually improving outlook for the US and strong long term macro drivers for India. In addition, Indian pharma companies are also expected to witness margin expansion from improved product mix and currency tailwinds. Since pharma stocks have already rallied over 45% from the lows of March, CLSA is suggesting a more stock specific approach. CLSA recommends specific stocks like Sun Pharma, Cipla, Aurobindo, Cadila etc. Current trends in the US indicate an improving outlook for the generic industry. The recent spurt in approvals in the US for Indian companies is a sign that the US is giving up its rigid stance. However, CLSA is negative on Lupin in the pharma space.