Amid strong global cues, Indian indices in line with their Asian peers opened higher in trade on May 10, 2021 and continue to trade firm in the afternoon session. At the time of writing this report, Nifty was up 123 points at 14945. Broader markets also performed in line with Nifty Midcap 100 up 0.85%.
Among Nifty sectoral indices, Pharma sector outran all other indices with gains over 3% at the time of writing this report. In fact the Nifty Pharma index hit a new 52-week high of 14213.9 today.
All of the 10 Nifty Pharma constituents were trading higher with contribution from Sun Pharma, Divis Labs, Dr. Reddys Labs, Torrent Pharma and Aurobindo Pharma. The gains in the stock price of pharma shares remained in the range of 2 to more than 5%.
Pharma stocks that hit fresh 52-week high on May 10, 2021
|Scrip||52-week high price reached on May 10, 2021|
|Sun Pharma||Rs. 703.5|
|Divis Laboratories||Rs. 4199|
|Aurobindo Pharma||Rs. 1061.75 4.8%|
Talking specifically about the pharma sector, market experts suggest the pharma space to outperform in the medium term of say 3-5 years. Recent stimulus for pharma has been the RBI's liquidity shot to boost healthcare infrastructure amid raging coronavirus second wave in the country. In the short term FY22 is expected to be an excellent year pharma given the Covid-led demand.