Why shares of the biotech company are rising despite a plunge in the shares of pharma and metal sectors
Despite the Nifty and the Sensex Index posting rebounds in the shares of their metal and pharmaceutical sectors, shares of top Indian research-based pharmaceutical and health company Panacea Biotec (NS:PNCA) rose up to 6%.
Stocks under the said index dropped to 7-month low following the statement from Prime Minister Narendra Modi who stated that capital market taxes should be raised.
Although it has closed 6% higher, Panacea Biotec shares surged to as much as 10% during Monday trading after the launch of the liquid tetravalent vaccine Easyfour-TT which also happens to be the world’s first can be used to protect young children from diseases such as diphtheria, tetanus, pertussis, and haemophilus influenza type B.
Aside from protection and immunization for infants, a booster dosage also served as the purpose of the world’s first liquid Tetravalent vaccine against the said diseases.
By Monday’s early afternoon trading, the stock has risen 5% to 120.85 up by 5.95 points compared to the previous trading session’s close of 114.90. Panacea Biotec touched an intraday high of 127.00 and 110.10 on the announcement of the world’s first liquid Tetravalent Vaccine.
The company is currently known for their products in cardiovascular management, osteoporosis management, diabetes management, and other therapeutics that caters to conditions in gastrointestinal and renal diseases.
Nifty Index Update
December 26th proved to be a bad day for stocks under the Nifty Index, as pharmaceutical shares dropped by 1.6% during the day and the metal sector posting a decline of 1.5% during the day. The two sectors are the biggest losers during Monday’s trading session with the Hindalco (NS:HALC) shares dropping by as much as 3%.
The Indian currency rupee also opened lower at around 67.83 to the greenback from the previous trading session of 67.82 leading the Nifty Index to lose about 44 points, going beneath the 7950 mark while the Sensex dropped down 150 points to 25885.96 before losing another 222 points by 9:31 am.
Other pharmaceutical stocks such as Divi's Lab (NS:DIVI) declined by as much as 10% down during early Monday trading to 775.35 before declining down to another 11% at 769.40. The company have erased almost 9,600 crore from its market value for the past two trading sessions.
Other sectors which have posted the biggest drops includes metal and realty stocks with the Nifty Metal dropping down to as much as 2.37% while the Nifty Realty decline to as much as 2.61%. Companies such as Hindalco declined to as much as 4.02% to 152.90. Other metal companies also declined to around 2 to 3%.