Market reacts to 2 things - Surprise and Shock, says Anil Singhvi on corona vaccine triggers; reveals pharma stock outlook

Zee Business Managing Editor Anil Singhvi said that he is not over bullish on pharma stocks for the next 3-4 months. If the markets have discounted the impact of coronavirus, they have also discounted the news of development of the coronavirus vaccine, Singhvi opines.

The phase of out-performance of pharma stocks is over, he said. People who still want to invest in large cap pharma stocks will have to rely on market performance. He further said that the time for extraordinary returns are also over.

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बाजार का रिएक्शन सिर्फ 2 चीजों पर: सरप्राइज और शॉक...
अनिल सिंघवी ने कहा- अब बाजार की चाल पर ही चलेंगे फार्मा शेयर...नहीं मिलेंगे असाधारण रिटर्न, बोले- ग्लोबल बाजारों का फोकस कोरोना और वैक्सीन से हटकर है#EditorsTake #CoronaVirus #COVID19 #USMarket #Sensex #Nifty @AnilSinghvi_ pic.twitter.com/krW6Mw9gmu

— Zee Business (@ZeeBusiness) July 2, 2020

There is no excitement in the markets on the possibility of coronavirus vaccine coming soon as the US markets have showed. After opening at a high, they closed down by almost 350 points on Wednesday.

It is being widely believed that the vaccine may come into the market in the next few months, Singhvi said. He further said that there are several companies across the world who are in the race of developing the vaccine.

There appears no significant fear of coronavirus among the people despite high number of cases being reported in the US on the daily basis. Therefore, there is also no point in being over confident on the issue of vaccine, Singhvi said.

The market Guru said that market reaction here is dictated 2 things, surprise or shock factors. The former is required for a rise, while the latter is for a fall.

The impact of vaccine would be seen only on the day when markets know that the vaccine has finally been developed.

Zee Business has recommended pharma and FMCG sectors when Nifty was around 7500 levels. In the global market situation a sector that may see gains with recovery will be metals. The other two sectors were cement and metals. The momentum since then, has seen similar patterns emerging as predicted by the channel, the market Guru said.

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The presence of adequate liquidity is ensuring positive sentiments in the markets. The markets have reacted less on negative developments and more on the positive ones. Global markets are reacting in the absence of coronavirus related developments.