Nifty Pharma Index Hits All-Time High as Sector Outperforms Broader Market
The Nifty Pharma index surged to a record high of 22,587.95 on Wednesday, outperforming the Nifty 50 benchmark by rising 10% over the past month. Divi’s Laboratories led the gains, climbing 3.76% following a favorable US court ruling on a drug. Other major contributors, including Dr. Reddy’s Laboratories, Glenmark Pharma, Zydus Life, and IPCA Labs, saw their shares rise by 1-4% today, further driving the index’s strong performance.
In Q1FY25, the pharma sector demonstrated robust growth, with revenue increasing by 12% year-on-year, EBITDA by 20%, and net profit by 23%. All three metrics exceeded market expectations, underscoring the sector’s strength amid stable US pricing, benign input costs, and strong domestic demand. The broader Nifty 50 index also saw gains, closing 71.35 points higher at 24,770.20, marking its fifth consecutive session in the green.
Market analysts attributed the positive trend to strong domestic institutional investor flows and cautious global market sentiment ahead of the Jackson Hole Economic Symposium. With the US Federal Reserve’s potential rate cut and easing inflation in focus, global markets remained cautiously optimistic. The symposium, set to begin on August 22, will be closely watched, particularly for insights from Fed Chair Jerome Powell on future monetary policy.
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