Nifty Pharma Reaches Record High as Three Stocks Gain Over 100% in a Year

SENSEX 78041.59 -1176.45 (-1.51)

NIFTY 50 23587.5 -364.2 (-1.54)

GOLD 78145 565 (0.72)

SILVER 93500 -1000 (-1.07)

NASDAQ 19572.6 199.83 (1.02)

FTSE 8084.61 -20.71 (-0.26)

Nikkei 38701.9 -111.68 (-0.29)

Crude 5944 5 (0.08)

USD/INR 84.95 0.01 (0.01)

EURO 88.6 0.25 (0.28)

POUND 106.83 0.07 (0.07)

YEN 0.54 -0.01 (-1.85)

Nifty Pharma Reaches Record High as Three Stocks Gain Over 100% in a Year

Nifty Pharma index has surged up to 8% in the past month, strongly outperforming the Nifty 50's less than 2% upmove.

August 30th, 2024 News

The Nifty Pharma index achieved a significant milestone on Friday, hitting a record high and continuing its strong performance in the market. The index surged to an intraday peak of 23,275.50 on August 30, surpassing its previous record of 23,111.50.

Key Highlights:

Nifty Pharma Surge: The Nifty Pharma index has jumped up to 8% over the past month, significantly outperforming the broader Nifty 50 index, which saw a modest gain of less than 2% during the same period.
Intraday Performance: At 1:52 pm, the Nifty Pharma index was trading 1.34% higher, reaching 23,185.20 on the NSE.

Leading Contributors:

The recent rally in the Nifty Pharma index was driven by strong performances from several pharmaceutical companies. Notable gainers include:

Natco Pharma
Alkem Laboratories
Torrent Pharmaceuticals
Laurus Labs
Glenmark Pharmaceuticals
Cipla
Zydus Lifesciences
Divi's Laboratories

These companies witnessed a rise of around 2-2% on Friday, contributing to the index's overall strength.

Impressive Yearly Gains:

Since hitting its 52-week low of 14,544.25 in December 2023, the Nifty Pharma index has seen an impressive 60% increase. Over the same period, several stocks within the index have delivered outstanding returns:

Glenmark Pharmaceuticals: Up 131%
Granules India: Up 119%
Zydus Lifesciences: Up 101%
Lupin: Up 96%
Natco Pharma: Up 94%

Broader Market Context:

While the Nifty Pharma index has shown exceptional performance, the broader market indices also experienced gains. The Sensex rose by 280.90 points, or 0.34%, to 82,415.51, and the Nifty 50 increased by 85.80 points, or 0.34%, to 25,237.80.

Expert Insights:

In an interview with CNBC-TV18, Balaji V Narayanan, Director at NAFA Asset Managers, shared his market outlook. He emphasized that while they are not extremely bearish, they are finding considerable value in the midcap and smallcap segments. "Currently, we have cash levels of about 8% to 10%," Narayanan noted.

He also mentioned that their positioning remains underweight on financials, a strategy they have maintained for the past two and a half years. "We have been underweight on financials for the last two to two and a half years, and I think that is going to continue for some more time. Additionally, we are zero on PSUs," he added.

The Nifty Pharma index's remarkable performance highlights the resilience and growth potential within India's pharmaceutical sector, with several companies delivering exceptional returns over the past year. As the market continues to evolve, investors are closely watching the sector for further opportunities.