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'Safe Haven' Pharma Sector in Decline since 2 Years
May 31, 2017

The BSE Healthcare Index ended at 13,517 yesterday, a 20% decline from the start of 2016. The pharma sector, once considered a safe haven for investors has been on a steady decline over the past two years.

Facing pricing pressures in the domestic and export markets, currency fluctuations, as well as manufacturing issues related to their plant, there is a transformation happening in the overall sector as to how business is done and will be done in the future.

Recent disclosure of shareholding pattern at the end of March 2017 indicates the pessimism towards the sector. FII's have reduced their stake in giants like Sun Pharma, Lupin, Dr Reddy's and Cipla. These behemoths have seen a combined market cap erosion of around Rs 9,815.2 billion over the last one year.

But there's always a point after which the downside is limited and stocks become attractive. That's when smart money slowly and steadily starts flowing in. How does one track those superinvestors who patiently wait on the sidelines for such an opportunity? I think, my colleagues Kunal and Rohan might be able to help you out. Right from promoter activity to bulk and block deals, they'll be tracking the well-known and successful names in the Indian stock markets. To know more about these super investors, download a free copy of - The Super Investors Of India.

Data Source: BSE India

This Chart Of The Day was published in The 5 Minute WrapUp - How Much Loss Can You Bear Before You Break?

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