At the beginning of March 2020, we have seen that the Indian stock market is crashing due to the COVID-19. Indian Stock Exchanges (NSE and BSE) witnessed the largest fall in its history. Every sector got affected by COVID-19. Prices of all shares have been falling in these days. Even though the market is not yet showing any signs of a clear bounce back after a month but the pharmaceutical sector stocks started showing a clear uptrend from the mid of March.
We have been tracking the pharma sector stocks frequently over this period due to the clear upward trend shown by them at a time when all other sectors were panicking.
Stocks that we have been analyzing mainly from the pharmaceutical sector are Auropharma, Sunpharma, Glenmark, and Biocon.
Let’s have a look at the performance of these stocks compared to the charts of Nifty 50 and Nifty Pharma
Nifty 50 V/S Nifty Pharma
When you look at the charts of both Nifty 50 and Nifty Pharma what we see is Nifty Pharma is moving against the trend shown by the index, which indicates that the stocks in this sector also follow the same pattern. Movement of Nifty Pharma from 18th March 2020 to 22nd April 2020 is 47% while the movement of Nifty 50 is just 9.5% only.
Nifty Pharma vs pharmaceutical stocks
The stocks that we pick for analysis are Auropharma, Sunpharma, Glenmark, and Biocon. When comparing these stocks with Nifty Pharma Auro pharma gave 76% movement, SunPharma gave 31% move, Glenmark gave 60% move, and Biocon gave a movement of 43%
From this analysis we come to the conclusion that during this lockdown compared to all other sectors in NSE and BSE, the Pharmaceutical sector is performing much better. Even though the pharmaceutical sector is showing a sideways trend over the last 1 week, still those who are into intraday trading can keep an eye on this sector because the game is still on until our country starts to show a clear sign of recovery from COVID-19.
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