Investors should stick to stocks of firms focused on domestic market

Pharma firms can build brands and enjoy higher margins here

While the Sensex is up 22.6 per cent over the past month, the S&P BSE Healthcare Index has clocked a much higher gain of 38.1 per cent over this period. The sector, which has been an underperformer since 2016 (see table), has caught investors’ fancy since the start of the Covid-19 crisis.  

Several factors have contributed to this change in preference. Since pharma and health care are essential services, they are likely to see less disruption than others. “Banking and financial services, automobile, industrial, infrastructure, and information technology are expected to be affected. Pharma and health care, on the other hand,