ETMarkets Investors’ Guide: Are pharma stocks best defensive bets in a volatile market? – Economic Times


Hello, you have tuned into ETMarkets Investors’ Guide, a show about asset classes, investment ideas and market trends. I am Nikhil Agarwal.

True to its reputation as a defensive play, pharma was the only sector that ended the volatile week in the green. While Nifty ended the week 1.5 per cent lower, defensives like Nifty FMCG index lost 1.1 per cent while Nifty IT index eroded as much as 3.8 per cent of investors’ wealth. On the other hand, Nifty Pharma Index hit a three-month high to end 1.8 per cent higher.

Are pharma stocks the best defensive play in a directionless market amid the second wave of Covid? Or will IT and FMCG stocks play catchup? In today’s special podcast with independent market expert Rajiv Nagpal, we analyse if defensive bets can help you lose less money when the Sensex is tanking.

Welcome to the show Mr Nagpal.

1) Do you think Calendar 2021 can repeat the show of 2020 when it comes to pharma stocks? Will the sector again outperform?

2) How big a trigger is Covid 2.0 for vaccine and drug manufacturers, hospitals and path labs? Which pockets look more attractive?

3) What about other defensive sectors like IT and FMCG? Is it going to be a stock-specific play based on earnings and growth guidance?

Thank you Mr Nagpal. That’s all in today’s special podcast. But do keep checking this space for more such interesting content. Good bye!


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