The Nifty Pharma Index is up 2 percent, its high point for the day. Stocks like Cipla and Sun Pharma have outperformed the market.

Overall it is defensive buying; if you look at it on a week-to-date basis as well as a month-to-date basis, the Nifty Pharma Index has outperformed the market. This might not be on a year-to-date basis, but month-to-date, the Nifty Pharma Index is up around 2.8 percent. Nifty is just about down around 0.9 percent.

Now the reason is defensive buying, and experts say that, obviously with inflation concerns globally, pharmaceutical is a non-discretionary expenditure, and hence that would continue in terms of expenditure out of pockets.

Cipla and Sun Pharma are outperforming the market. Cipla’s stock is at a 52-week high. Near-term trigger includes the scale-up of the complex inhaler market.

As for Sun Pharma, there is a scale-up of the specialty business which is being looked at as well, positively.

Dr Reddy’s Laboratories has underperformed in the market due to its exposure to Russia as well as Ukraine.

Now overall, there remain concerns in the market — for example, US pricing pressure. Domestic-focused stocks are expected to be more resilient at this point in time.

Watch the accompanying video of CNBC-TV18’s Ekta Batra for more details.

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First Published:Mar 11, 2022 3:36 PM IST