Despite the massive sell-off in the stock market in March, shares of pharma companies have outperformed benchmark indices. The BSE Healthcare Index gained 12.61%, outpacing the BSE Sensex, which rose 6.2% in the last eight trading sessions, starting from 23 March.
Last month, the Sensex had fallen 23%, while the BSE Healthcare Index had slipped 9.88%. Analysts said pharma earnings are relatively secure in a market rife with fears of a slowdown due to various government restrictions as pharma offers stable revenue and profit streams.
Supply chain and raw material challenges are almost similar to other sectors, but analysts said pharma producers will be better placed as demand for medicines and healthcare items remained strong.