Nifty Pharma climbs 4% after RBI eases lending; Lupin, Auro Pharma, Sun Pharma hit 52-week high

• Follow

Shares of pharmaceutical companies hogged the limelight on May 5 after the RBI announced an on-tap liquidity window of Rs 50,000 crore for companies engaged in healthcare infrastructure and vaccine manufacturers.

The facility of on-tap liquidity with tenors of up to three years at the repo rate will remain open till March 31, 2022, RBI Governor Shaktikanta Das said.

Following the development, the Nifty Pharma index gained 4.12% to 13,779.70. With a rally of 13.71%, Lupin emerged as the top gainer in the index. Aurobindo Pharma (up 7.08%), Sun Pharma (up 5.87%), Cadila Healthcare (up 5.78%) and Torrent Pharma (up 4.66%) stood among major gainers in the Nifty Pharma index.

Other components of the index also ended the day in green. Meanwhile, Lupin, Aurobindo Pharma, Sun Pharma and Cadila Healthcare also scaled their respective 52-week highs during the day.

Under the scheme, banks may provide fresh lending support to a wide range of entities including vaccine manufacturers, importers/suppliers of vaccines and priority medical devices, hospitals and dispensaries, pathology labs, manufacturers and suppliers of oxygen and ventilators, importers of vaccines and Covid related drugs, logistics firms and also patients for treatment.

The banks, Das said, are being incentivised for quick delivery of credit under the scheme through the extension of priority sector classification to such lending up to March 31, 2022.

These loans, he added, will continue to be classified under the priority sector till repayment or maturity, whichever is earlier.

“Banks may deliver these loans to borrowers directly or through intermediary financial entities regulated by the RBI. Banks are expected to create a Covid loan book under the scheme,” Das said.