The government has thus far procured vaccines at a lower price compared to the global market. [Source: Reuters]
The Indian stock market, tracking positive global cues has been trading higher with Sensex adding 333.40 points, or 0.68 percent, at 49,539.87, and the Nifty gaining 108.60 points, or 0.73 percent, at 14,931.80.
Among the sectors, the pharma index has gained over 2 percent led by Torrent Pharma and Alkem Labs, which jumped over 5 percent each, followed by Dr Reddy's Labs, Cadila Healthcare, Divis Labs and Sun Pharma, which added 2-3 percent each.
Pharma companies have been in focus after the US government's decision to support the temporary waiver of Trade-Related Aspects of Intellectual Property Rights (TRIPS) on Covid-19 vaccines. The industry said, along with patent waivers, it is important to push for more licensing and tech transfer arrangements to expand production of COVID-19 vaccines.
Also read: Why patents on COVID-19 vaccines are so contentious
A significant surge in daily coronavirus cases across India has led to a spike in demand for COVID-related drugs, as well as allied services such as hospitals, diagnostic and pathology labs.
The healthcare sector index, the top performer of 2020, has rallied more than seven percent so far in the year.
Also Read: Indian pharma firms welcome patent waivers on COVID vaccines, says tech transfer needed to scale up
Significant resurgence in Covid cases across India will benefit players like Cipla, Dr. Reddy’s and Cadila, who are scaling up capacity and production to meet the sudden rise in demand, said Axis Capital in a report.
Sameet Chavan, chief analyst-technical & derivatives at Angel Broking suggests buying Glenmark Pharma with target at Rs 645. Traders are advised to go long for a target of Rs.645 in the coming days. The strict stop loss can be placed at Rs 564, he said.
Stocks that have hit fresh 52-week high in today's trade included Glenmark Pharma, Wockhardt, Divis Labs and Aurobindo Pharma among others.Disclaimer: The views and investment tips expressed by the investment experts on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.