Pharma stocks rose in early trade today after Reserve Bank of India (RBI) Governor Shaktikanta Das unveiled Rs 50K crore liquidity facility for emergency healthcare amid the second wave of coronavirus.
Buoyed by the announcement, the BSE healthcare index rose 325 points to 23,650. The index had closed at 23,325 in the previous session.
On Sensex too, Sun Pharma was the top gainer rising 2.31% to Rs 659.90. The Nifty pharma index too gained 326 points to 13,559.
The emergency healthcare facility is likely to benefit vaccine makers and pharma products manufacturers. The RBI will open an on-tap liquidity window of Rs 50,000 crore with up to three-year tenor at repo rate till March 31, 2022.
"The three-year facility, which the banks can advance, to the tune of Rs 50,000 crore, is a good measure to immediately help ramp up medical and healthcare facilities. The benefits of this will help enhance capacity for the longer term as it covers diagnostic, preventive as well as combative aspects of healthcare. The smaller entities such as micro finance institutions also benefit from the current package, which will bring some relief to them too which is one of the worst affected sectors as of now,"said Joseph Thomas, Head of Research, Emkay Wealth Management.