Pharma stocks powered the rally in benchmark indices today on the back of a slew of upbeat pharma earnings reports. BSE healthcare index rose 959 points intra day to 19,719 against previous close of 18,760.
Nifty pharma index too gained 694 points intra day to 12,027 against previous close of 11,333.
Divi's Labs and Cipla reported better-than-expected Q1 earnings which took their stocks to fresh 52-week highs. The firm reported a 33% rise in consolidated net profit to Rs 492.06 crore in June quarter 2020 due to robust sales against a profit of Rs 272.44 crore in the year-ago same period.
Subsequently, share price of Divi's Laboratories climbed 16% to a fresh high of Rs 3,228 against previous close of Rs 2,748 on BSE.
"Numbers coming out of the pharma space are supporting positive momentum," said Saurabh Jain, assistant vice president research at SMC Global Securities in New Delhi.
Cipla reported a 26.58 per cent rise in its consolidated net profit in June quarter.
Net profit rose to Rs 566.04 crore on strong sales in Q1 against profit of Rs 447.15 crore in the corresponding period of the previous fiscal.
After Q1 earnings, Cipla share price rose 11.78% to fresh 52 week high of Rs 814 against earlier close of Rs 728.60 on BSE.
The positive sentiment from rally in pharma stocks kept Sensex and Nifty in green despite record coronavirus cases in India. While Sensex was trading 173 points higher at 38,214, Nifty rose 60 points to 11,274.