InvestorQ : Is it true that pharma stocks like Sun Pharma and Cipla have now become the preferred picks of the mutual funds?
NISHA Nayak made post

Is it true that pharma stocks like Sun Pharma and Cipla have now become the preferred picks of the mutual funds?

Answer
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5 months ago


Suddenly, Indian pharma companies are the flavour of mutual funds all over again. The institutional exposure to pharma stocks is at a 40-month high and has shot up in the last 3 months from 6% to 8.2%. Pharma is now the biggest overweight for domestic funds. It is estimated that the earnings downgrade in the sector is likely to be the lowest among all sectors. In fact, some pharma stocks are even witnessing earnings upgrade after gradual improvement in business outlook in the US market for generic business. After all, exports account for close to 70% of pharma sales in India. That is also evident in the stock market performance of pharma stocks.