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A sharp drop in daily Covid-19 caseload has been a primary factor in boosting investor sentiments.
However, on Dalal Street, shares of pathology labs, oxygen producers, pharmaceutical firms and medical equipment are on everybody’s radar due to a rise in the demand for products of these companies.
Money9 instituted and launched the 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.
Also Read: Here’s how the Money9 Covid25 index performed last week
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
This week, both Nifty50 and Covid25 touched their record highs of 15,469 and 312.67, respectively while Nifty Pharma ended with losses of 0.43% while Covid25 index rallied 1.39%. However, the Nifty50 index soared 1.72%.
Also Read | Money9 Covid25 Index: Check out its performance
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.
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)