and Laurus Labs from the pharmaceuticals and Dr Lal Pathlabs and Metropolis Healthcare from the healthcare facilities sector hit their respective record highs on the BSE in intra-day trade. Besides these stocks, Ipca Laboratories, Torrent Pharmaceuticals, Dr Reddy’s Laboratories, Divis Laboratories and Neuland Laboratories were up more than 2 per cent each.
At 10:34 am, the S&P BSE Healthcare index, the sole sectoral gainer, was up 1.3 per cent, as compared to 2.7 per cent decline in the S&P BSE Sensex. The S&P BSE Healthcare index hit a record high of 23,047 points in intra-day trade today.
Indian pharma, having delivered >40 per cent return in the first phase of covid, went into healthy correction (strong earnings) as the market saw a gradual flight of investment allocation to cyclicals/industrials, driven by the opening up of the economy, and a broad-market rally.
However, analysts at Phillip Capital believe that it is not over for the Indian pharma – and that it is all set for a sectoral value upgrade, led by a robust exports opportunity, supply chain de-risking by global pharma from China, strategic end-to-end integration, or led by Production Linked Incentive (PLI) schemes, enhanced specialty drug efforts, and recovery of global pharma demand post covid. Also, the covid-led opportunities could be a catalyst in the near term.
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