Sun Pharmaceuticals, Aurobindo, PEL, Dr. Reddy’s, Biocon, and Lupin contributed majorly to the gain in the index.
IOL Chemicals & Pharma was the top gainer in the index, trading higher by 7% at Rs188.20 per share.
On the other hand, Eris, Neuland Laboratories, Apollo Hospitals, and Divis Lab were trading in the red.
According to media reports, CLSA expects the Indian pharma sector to build on the earnings growth revival in 2018-19 with challenges to drive further consolidation in the US.
Shares of Sun Pharma rose 2.4% after brokerage firm CLSA maintained a "buy" rating and cut its target to Rs560 from Rs700.
Also, CLSA has upgraded Aurobindo Pharma to outperform from underperform, trimming its price target to Rs820 from Rs840.
Meanwhile, the Sensex was trading up by 40 points at 35,890 and Nifty rose 12 points to 10,784.