Why pharma stocks are underperforming despite Rs 2.23 trn Budget allocation

Much of the increase in this year's Budget allocation for health and well-being is attributed to expenditure set aside for Covid-19 vaccination

Union Budget 2021, which was presented amid a global health crisis, was sketched with 6 pillars in focus. Among these, healthcare was the foremost agendum of Finance Minister Nirmala Sitha­raman’s Budget speech, and the sector was allocated a generous pie of the entire budgetary allocation.

At Rs 223,846 crore, the sector's allocation jumped around 118 per cent over the Revised Estimate of the current fiscal year. Yet, stocks from the sector have been underwhelming at the bourses. READ ABOUT IT HERE

The S&P BSE Healthcare index is up just 1 per cent on the BSE today, at 20,891.5