India’s Nifty Pharma Index (.NIPHARM) soared 2.2% in early trade on May 13, 2025, bucking recent volatility and signaling renewed investor confidence in the pharmaceutical sector. The rally comes after a turbulent session triggered by global policy announcements, with heavyweight stocks driving the index’s sharp recovery.
Key Highlights:
Sharp Rebound: After a steep 2.3% drop on May 12 following US President Trump’s announcement to slash American drug prices, the Nifty Pharma Index surged 2.2% as investors bought into fundamentally strong pharma names at attractive valuations.
Major Movers: Sun Pharmaceutical Industries, Dr. Reddy’s Laboratories, Cipla, Divi’s Laboratories, and Laurus Labs-top constituents of the index-posted strong gains, reversing previous losses and boosting overall sector sentiment.
Market Dynamics: The index opened at 20,949.70, hit an intraday high of 21,156.75, and outperformed the broader market, which also rallied on easing geopolitical tensions and a positive global cues.
Sector Resilience: Despite global headwinds, including US drug pricing reforms and export uncertainties, Indian pharma stocks demonstrated resilience, underpinned by robust domestic demand, steady export pipelines, and recent dividend announcements from key players.
Long-Term Outperformance: The Nifty Pharma Index has delivered a 14.29% annual return over the past year and a stellar 125% gain over five years, reflecting the sector’s defensive appeal and growth trajectory.
With strong fundamentals and renewed buying interest, the Nifty Pharma Index’s latest surge highlights the sector’s enduring strength amid global uncertainty.
Sources: Nifty Indices, Business Standard, Economic Times
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