2025: The pharma stock poised to outperform
Subscribe to enjoy similar stories. Merry Christmas to all our readers! As we step into the final stretch of 2024, it’s time to reflect on the market’s journey, analyse the highs and lows, and contemplate the road ahead. In the 52nd week of 2024, the market continues to show its characteristic twists and turns, leaving everyone asking: what does 2025 hold? Read this | Home remedy: Indian pharma bets on domestic brands to combat US generics slowdown The Nifty50 index recorded a commendable gain of approximately 9% for 2024.
However, the fourth quarter brought a sharp 8% pullback—the steepest quarterly decline since Q2 of 2022, when the market fell nearly 9.65%. That earlier drop marked a pivotal retracement bottom, setting the stage for a post-2020 rally that propelled markets to new heights. Could history repeat itself? For now, uncertainty reigns.
While volatility grips the broader market, the pharmaceutical sector is making new highs, as reflected in the performance of the Nifty Pharma index. As we approach 2025, investor sentiment is clearly gravitating toward defensive sectors. The pharmaceutical sector has been a standout performer in this shift.
The Nifty Pharma index reached an all-time high in Q4 of 2024, reflecting a notable move away from high-risk, high-growth sectors toward safer, more stable stocks. Read this | Weight-loss drugs: A game changer for India’s top pharma companies A closer look at the Nifty Pharma/Nifty50 ratio chart reveals a compelling narrative. This ratio broke out from its 2021 levels during 2024, signaling that pharmaceutical stocks may continue their upward trajectory, potentially outpacing the broader market.
Read more on livemint.com
