Mumbai: The Nifty Pharma Index has touched an all time high of 25,043 on Wednesday, May 20 even as the benchmark Nifty50 declined 0.14% to close at 23,585 amid challenges with the Middle East conflict.
The Pharma index has outperformed the headline index by a wide margin, where the Nifty Pharma index delivered a 15% gain in a year while the Nifty 50 declined 4% during the same period.
Why Pharma is Back in Focus
This rally has come at a time despite the geopolitical challenges and has depended on the macroeconomic shifts made.
- The weakening rupee advantage: With the Indian Rupee at a lifetime low of 96.96 against the US Dollar, this has been a boon for the sector which has relied on exports to the US and Europe for its growth.
- Favored for safety: Various Portfolio Management Service (PMS) houses and institutional desks have been favouring pharma stocks as pharma revenues remain fairly consistent with hardly any impact from fuel-driven inflation.
Top Outperformers
This outperformance has seen various high volocity large cap players witness their own set of rallies.
- Zydus Lifesciences: Its shares surged 5.71% to reach Rs.1,091 as the company announced a massive Rs.1,100 crore share buyback with a premium price of Rs.1,150 per share.
- Mankind Pharma: Shares rose 2.38% after its net profit rose 32% year on year due to robust market share gains across Tier 2 cities.
- Gland Pharma: The company’s shares have been in focus following its 97% year-on-year net profit gain driven by strong gains in its US business.
