Coronavirus-induced lockdown in China can put the brakes on pharma funds

Money managers say domestic API manufacturers can stall impact from Chinese lockdown

The continued lockdown in parts of China triggered by the Coronavirus outbreak can put brakes on the stellar performance shown by pharma funds in recent months. Fund managers feel domestic pharma companies can face challenges if supply-chain issues in China continue for another couple of months.

In one-year period, pharma funds have given average returns of over 18 per cent, outperforming 12 per cent gains posted by frontline indices such as Sensex and Nifty.

"Domestic pharma companies, which are importing raw materials from China, have inventory for one or two months. But, if there is any prolonged impact, it can