Friday's Bull! Nifty Pharma soars 2.5% as new Covid variant takes focus; Cipla surges 8%; Dr Reddy's, Pfizer, Alkem, Divis Lab, Cadila drive

Pharma and healthcare stocks were in demand due to their nature of being frontrunners in tackling the virus and leading to recovery.

Nov 26, 2021 12:11 IST India Infoline News Service

Stock Market Rebounding
With the new Covid-19 variant taking a centre stage in souring broader markets mood on Friday, however, the same could not be said for Indian pharma stocks as the sector emerged as the only bull of today's trading session with broad-based buying across the counter. Pharma and healthcare stocks were in demand due to their nature of being frontrunners in tackling the virus and leading to recovery.

At around 12.23 pm, Nifty Pharma was trading at 13,912.65 higher by 346.15 points or 2.55%. The index has touched an intraday high and low of 13,915.75 and 13,455.25 respectively.

Cipla was the top bull soaring by nearly 8%. Alkem Lab followed with gains of more than 6%. Pfizer surged nearly 5% and Dr Reddy's Lab advanced over 4%.

Divis Lab climbed 3.3%, while Cadila Healthcare and Lupin zoomed 2.75% and 2.6%. Aurobindo Pharma jumped over 2.5%.

Strides Pharma soared 1.7%, Glenmark advanced 1.6%. IPCA Labs and Abbot India surged 1.5% each. Laurus Lab and Biocon zoomed over 1% each. Natco Pharma and APL Apollo gained by 0.9% and 0.6%. Granules traded flat but in green.

On the downside, Sun Pharma, Torrent Pharma and Gland Pharma were marginally down.

Currently, India is said to be on high alert due to the detection of a new variant in the Coronavirus that is said to have significantly high mutations and serious public health implications. Following this, the government has directed authorities rigorous screening and testing of travellers from countries like Botswana, South Africa and Hong Kong.

Indian markets were in a steep free fall tracking weak global cues as traders hastily leaned towards bonds after news about new detection of a variant in the Covid-19 that could be vaccine-resistant. Concerns about renewed lockdown restrictions and decline in the already recovering business activities led to investors' appetite bearish for equities.

However, pharma stocks were immune to the weak counterparts but instead were on a bull run. The performance also comes after when Moody's Investors Services said that India's economic growth is seen to rebound strongly in the next fiscal year. Moody's forecasts the country's GDP at 9.3% in 2022. While the rating agency predicts a GDP of 7.9% by the end of March of the fiscal year 2023.

Analyst at Moody's said that India's sustained recovery in economic activity will be supported by a rising rate of vaccination against the coronavirus disease (Covid-19).

As per Ministry of Health and Family Welfare data today, with the administration of 83,88,824 vaccine doses in the last 24 hours, India’s COVID-19 vaccination coverage has exceeded 120.27 Cr (1,20,27,03,659) as per provisional reports till 7 am today.  This has been achieved through 1,24,56,121 sessions. The recovery of 9,868 patients in the last 24 hours has increased the cumulative tally of recovered patients (since the beginning of the pandemic) to 3,39,77,830. Consequently, India’s recovery rate stands at 98.33% which is the highest since March 2020.

However, 10,549 new Covid cases were reported in the last 24 hours.

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