Street signs: MFs place contra bets in pharma, Biocon sees rise, and more

Shares of Avenue Supermarts get a lot of market attention as they have soared more than five times over their IPO price

MFs place contra bets in pharma

Pharmaceutical stocks have been one of the worst performers this year, with the BSE Healthcare index down 15 per cent from January highs, while the Sensex is up 4 per cent. Bucking the negative trend, two new fund offers (NFOs) tracking the pharma space — Mirae Asset Healthcare and ICICI Prudential PHD — are coming out this month. Industry insiders say, the pharma sector can be an interesting investment opportunity given the long-drawn correction it has gone through and that the margin erosion faced by Indian pharma companies could bottom out in a few months.