Edelweiss Securities says the novel coronavirus, or COVID-19, pandemic has caused severe supply-side disruptions in various sectors, earnings will be cut by 10-15%. Pharma as a sector has emerged as a strong contender to drive the next leg of rally, whenever it comes. In anticipation, pharma stocks have seen a huge run up in the last 10 days.
This is not just true for India, but globally too pharma companies have performed well. While in the short term, most companies will bounce back from the last 5 year of underperformance, this time around, the leader will be different.