Pharmaceuticals and NBFCs Attract Mutual Fund Investments in April
Pharma, NBFCs see fresh mutual fund buying in April
The Economic Times
Image: The Economic Times
In April, domestic fund managers increased their investments in defensive sectors, particularly pharmaceuticals, amid rising oil prices and geopolitical tensions in West Asia. Significant opportunities from patent expirations and growth in asset management led to increased allocations in companies like Aurobindo Pharma and Nippon Life.
- 01Domestic fund managers focused on pharmaceuticals and NBFCs in April.
- 02Patent expirations for drugs like semaglutide are driving stock purchases.
- 03Strong growth in asset management prompted investments in Nippon Life and Aditya Birla Sun Life AMC.
- 04Funds are shifting towards retail lending and affordable housing.
- 05Valuations in asset management remain attractive compared to peers.
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In April, domestic fund managers favored defensive sectors, particularly pharmaceuticals, due to rising oil prices and geopolitical tensions in West Asia. The impending patent expiry of semaglutide, a weight-loss drug, is seen as a significant opportunity for Indian pharmaceutical companies, prompting increased investments in stocks such as Aurobindo Pharma, Torrent Pharma, Sun Pharma, Emcure Pharma, Dr Reddy’s, Mankind Pharma, and Divi’s Laboratories. Additionally, strong growth visibility in the asset management sector led to higher allocations in Nippon Life and Aditya Birla Sun Life Asset Management Company, as their valuations are considered attractive compared to competitors. Furthermore, a shift towards retail lending and affordable housing has resulted in increased exposure to PNB Housing Finance.
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The increased investments in pharmaceuticals and NBFCs could lead to job growth and innovation in these sectors, benefiting consumers through improved products and services.
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