The second wave: Pharma stocks make a comeback as Covid-19 cases rise

However, analysts say these stocks may not deliver bumper returns like last year

After underperforming the broader market for the most of the past six months, pharmaceutical stocks are back in favour as Covid-19 cases rise, pushing the equity market into a tailspin. The BSE Healthcare index has risen 9 per cent in two weeks, against a 4 per cent decline in BSE Sensex.

On Monday, the BSE Healthcare fell just 0.8 per cent, while the Sensex declined 3.44 per cent. Dr Reddy’s Laboratories was the only index stock to gain on Monday, rising 5 per cent. Similarly, three of the four Nifty50 stocks that gained on Monday were pharma stocks — Dr Reddy’s