Here’s how the Money9 Covid25 index performed this week
This week, Money9 Covid25 Index outperformed the Nifty Pharma index by 1.9 percentage points but underperformed the Nifty 50 by 68 basis points
According to a report released by Goldman Sachs, Covid-related hospitalisations witnessed a dip over the past week.
However, on Dalal Street, shares of pathology labs, oxygen producers, pharmaceutical firms and medical equipment are on a tear.
Money9 has instituted and launched the Money9 Covid25 Index with an intention to help the investor get a holistic view of companies that are at the forefront of India’s fight against the virus.
As the name suggests, the index consists of 25 Covid-stocks broadly categorised into five verticals of the healthcare industry— vaccine manufacturers, pharma companies, hospital chains, pathology laboratories and medical equipment manufacturers.
Methodology
Money9 Covid25 Index is computed based on equal weightage for all constituents of the index. In this method, the level of the index demonstrates the aggregate market value of stocks present in the index in a specific base period. The base period for the Money9 Covid25 Index is March 24, 2020 when India went into lockdown, and the base value of the index has been kept at 100.
Performance
In the week gone by, Nifty50 soared over 3%, fuelled by a rally in small and midcap stocks. Likewise, Money9 Covid25 Index surged 2.71% and the Nifty Pharma index gained 0.78%.
Constituents
The index is constructed as a Covid-specific alternative to the Nifty Pharma index by including a larger universe of stocks that include hospitals, pathology labs, medical equipment manufacturers and oxygen suppliers. Companies are selected based on their product offering and their being at the forefront of aiding the fight against the virus.
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- Gland Pharma got listed on the exchanges on 20 November 2020. Index weightage adjusted accordingly.
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- Max Healthcare Institute got listed on the exchanges on August 21, 2020. Index weightage adjusted accordingly.
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- Bhagawati Oxygen scrip on BSE. Previous day closing price was considered for days when share prices were not available.
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- Nureca got listed on February 25, 2021. Index weightage adjusted accordingly.
Limitations
Companies having different products, revenue streams and sizes are given equal weightage. The biggest vaccine players— Serum Institute of India and Bharat Biotech — are not part of the index since they are not listed on exchanges.
(Disclaimer: The list has been compiled for informational purpose only. Before investing, please consult your financial advisor)
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