InvestorQ : How come all the pharma stocks like Cipla, Lupin and Sun Pharma perform so well on Monday 21-Dec when the entire market was sharply down?
Lavanya Subramanian made post

How come all the pharma stocks like Cipla, Lupin and Sun Pharma perform so well on Monday 21-Dec when the entire market was sharply down?

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Anamika Sodhani answered.
5 months ago
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Pharma was the one exception in the overall market that saw a virtual carnage on 21 December. Ironically, on the day when there was a sharp fall in the markets, the Nifty Pharma index hit a record high of 12,836. In short, the pharma stocks almost appeared to be moving in negative correlation to the overall markets.

Stocks like Cipla, Cadila, Lupin, Sun Pharmaceutical and Aurobindo were among the major gainers on 21-Dec. It was not just about the mega healthcare companies. Even smaller healthcare companies like Suven, Indoco, Glenmark, Dr. *** PathLabs, RPG Life, Strides and even Laurus Labs had all managed to gain between 2% and 4%.

Of course, there were specific stories too. Laurus rallied after it acquired a 73% stake in Richcore Lifesciences. Glenmark just secured FDA approval for generic Praxada capsules while Lupin got FDA approval for generic version of Colesevelam Hydrochloride tablets. These tables are useful in reducing low-density lipoprotein cholesterol (LDL-C).

The overall sentiments for the pharma sector were also positive because the relapse of COVID in UK and parts of Europe underlines the urgent need to address the issue of manufacturing and distribution of these vaccines on an urgent war footing.

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