Last hour's effort helped the market to stay elevated. However, the rising cases of coronavirus kept the recovery firmly under check. In today's post, we are tracking the monsoon progress. Also, since the earning season is underway, we have also outlined how the pharma and healthcare sectors are expected to perform.
The market recovered but continues to face stiff resistance around the current level. Global markets, in the meanwhile, resumed their journey upwards after a brief pause last week.
The monsoon remains a sole comforting point for the economy. The latest weekly report shows that Northwest India has received 1% above the average rainfall. Central India (up 21%) and South peninsula (up 24%) did exceedingly well but the East & Northeast India cluster saw a decline of 19% over the average.
On the crop sowing front, the Overall area under Kharif crops has increased by 44.13% this season. Rice sowing is up by 26.2%; Pulses sowing is up over 160%; Cereal sowing is up 29.57% and the Oil Seeds cultivation area is up over 80% over a year ago.
Q1 preview: Pharma & Healthcare:
Indian pharma is tipped to emerge as a stand out sector amid the current pandemic. India's portfolio is expected to remain under pain but the US market with a favorable pricing environment emerged as a major positive. The US regulatory approval run-rate also improved with 268 new approvals in Q1FY21 versus 242 in the same period last year.
The Healthcare sector is expected to see a sharp plunge in EBITDA with hospital occupancies barely breaching the breakeven levels. Diagnostic chains are also likely to report an EBITDA decline given negligible contribution from the wellness business.