PHARMA STOCK: AT PINK OF THEIR HEALTH

Pharma stocks are once again showing sign of strength as they have outperformed key equity indices.

IN last one year equity market has generated huge return for their investors, however, some of them have outperformed by huge margins to the wider market. One of the sectors is pharmaceuticals. After going into a downturn post-pandemic, they have shown a remarkable return in last one year. The Nifty Pharma index have clocked healthy gains, significantly outperforming the equity benchmark Nifty 50. The performance data clearly illustrates the significant outperformance of the Nifty Pharma Index compared to the frontline equity index Nifty 50 across various durations.

Nifty Pharma is consistently demonstrating superior returns. Over one year, for instance, Nifty Pharma surged by an impressive 60.39 per cent, more than doubling the return of the Nifty 50 at 28.30 per cent. Data show that the Nifty Pharma index has gained 24.95 per cent while the Nifty 50 has risen 14.64 per cent in the last six months. If we consider the shorter timeframe, the pharma index has gained by 20.69 per cent in the last three months while the Nifty 50 has gained 12.37 per cent.

This substantial outperformance underscores the strength and resilience of the pharmaceutical sector, likely driven by factors such as innovative drug pipelines, global demand for healthcare, and increased focus on healthcare spending, thereby positioning Nifty Pharma as a standout performer in the equity market landscape.

Why Pharma is at Pink of the Health?

A confluence of factors has played in favour of pharma companies.

continued strength in US Generics Market: The US generics market, the world’s largest and also Indian company’s largest market is expected to maintain steady growth in coming futures due to factors like: