In a weak market, when rising coronavirus cases in the country and amid it total lockdown fears in the state of Maharashtra has led to a drastic fall in today's session. The only index up in the otherwise weak market, bucking the market is the pharma index. At around 12:19 pm, the Nifty pharma index was over 1.19%.
In fact of the Nifty gainers, 3 out of 4 gainers are from the pharma space namely Cipla, Divis Labs and Dr. Reddy's Labs among others.
One of the reason for the resilience in the pharma pack has been the government stance to stop export of Covid 19 drug Remdesivir owing to shortages, hoarding as well as profiteering in Mumbai and other cities in the country. Infact on the development the pharma index hit a new high and there was a surge in demand for counters in the segment. Also, there are other pharma companies that in a licensing pact with Gilead Science are producing injectible Remdesivir.
Cipla, Laurus Labs, Dr. PathLabs and Metropolis Healthcare hit their respective record highs. There is a view that after robust performance amid Covid 19 first phase, the new wave offers new opportunity for the counters in the segment, and it is all set for a sectoral value upgrade, said an analysts at Phillip Capital.