Is There A Correction In Store For Pharma Stocks?
The Nifty Pharma Index this year has gained the most since 2015. Yet, analysts don’t expect much from the stocks.
The index rose over 10 percent so far this year, with only one stock—Cadila Healthcare—declining 5 percent during the period, Bloomberg data showed.
But analysts expect no or a little upside. Seven of these nine stocks are expected to fall in the range of 4-18 percent, according to Bloomberg consensus. Only Cadila Healthcare and Aurobindo Pharma—the cheapest stocks of the lot—have a positive return potential of only 2.7 percent and 3.8 percent, respectively.