Pharma index set to post its biggest monthly gain in 21 years amid Covid-19

Analysts, however, do caution against the rich valuation the pharma index and the stocks are trading at

Pharma stocks got a new lease of life as coronavirus pandemic got a tighter grip on the country in April, with the S&P BSE Healthcare index set to post its biggest monthly gain in 21 years. Investors flocked to pharma stocks on expectations of these companies aiding the development of a vaccine to counter the pandemic and a rush to safer investing options in uncertain times.

The S&P BSE Healthcare index has rallied nearly 26.9 per cent thus far in April 2020, on a strong rally in stock such as Sun Pharmaceuticals Industries, Cipla, Lupin, Aurobindo Pharma and Glenmark Pharmaceuticals. In