COVID-19: ITS IMPACT ON INDIAN PHARMACEUTICAL SECTOR AND THEIR MARKET CAPITALIZATION

Abstract

The purpose of this study is to examine how COVID-19 outbreak has affected leading pharmaceutical companies share value in India. So, here are some of the leading pharmaceutical companies that have been selected and the selection was purely based on the market capitalization of the companies. The general idea behind this study was the pharmaceutical stocks will move against the general market trend (contrarian effect). The study period was classified into pre-crisis period that is 52 weeks before COVID-19 lock down ,i.e, during the Covid-19 lockdown crisis period and post lock down that is the unlock phase. The data consists of share value of the top selected pharmaceutical companies. This study also signifies that companies like Sun Pharma, Cipla, Alkem Laboratories Ltd with strong brand reputation were seen to be sustaining in the crisis period in spite of the general falling market trend. This paper is strongly an urge for the need of backward integration and improved research and development activities to Indian Pharmaceutical sector for ensuring their sustainable long-run operations.