PHARMA INDEX REACTS POSITIVELY TO THE BUDGET

Pharma Index was trading 4.03% higher at 12,859.50. It touched intraday high of 12,887.05 and low of 12,445.60.

Pharma sectors react positively to the government’s higher spending on healthcare in Budget 2021. Finance Minister Nirmala Sitharaman announced an outlay of Rs 223,846 crore for health and wellbeing in Budget 2021. This was an increase of 137 percent compared to 2020.

The finance minister also announced a new scheme called the PM Atmanirbhar Swasth Bharat Yojana for boosting the primary, secondary, and tertiary healthcare, with a budgetary outlay of Rs 64,180 crore spread over six years.

The big push for the pharma sector can be seen as an attempt by the government to wean India off raw material imports from China that are heavily used in local drug manufacturing.

Among the Constituents, Cipla,Sun Pharma rallied over 5% followed by Dr. Reddy,Torrent Pharma,Divi’s Lab, Cadila Healthcare gained over 3 %.