The equity story for 2021 has moved away from IT and Pharma to Metals, Auto and Banking. Sensex and Nifty made life highs in June while Small-caps and Mid-cap are already trading at their life highs indicating a secular bullish trend.
Such is the market momentum that the so-called defensives have also jumped in to participate in the rally. Nifty Pharma Index, after underperforming for most of 2021, managed to make life highs for itself on Friday’s trading session. Nifty Pharma Index inched up by 11.25 per cent on YTD basis while in one year the index was up by nearly 45 per cent.
Cadila Healthcare carrying a weightage of 4.46 per cent in the Nifty Pharma Index was the top index gainer in 2021, recording gains of 39.32 per cent followed by Lupin which was up by 22.77 per cent and carrying an index weightage of 8.27 per cent. Sun Pharma was up by 14.25 per cent, Dr Reddy’s Lab gained 4.17 per cent and Divis’s Lab strengthened by nearly 13 per cent. These three stocks carry the maximum weightage in the Nifty Pharma Index. Biocon was the worst performing stock of 2021 from the Nifty Pharma Index constituent list. Biocon is down by nearly 11 per cent on YTD basis.
Out of the 10 constituents of Nifty Pharma, almost 7 index constituents are either trading at fresh all-time highs or are at kissing distance of their fresh all-time highs. Dr Reddy's, Divis’ Lab, Cipla, Cadila Healthcare, Torrent Pharma and Alkem lab are the seven index constituents trading at or close to their all-time highs.