Bank nifty vs cnx pharma

General
1

Dear Zerodha,

I’ve noticed since from long period, that when bank nifty rises, cnx pharma decreases and vice versa. What would be the genuine reason for this inverse proportionality of CNX PHARMA VS BANK NIFTY ?

Any Specific reasons like : CNX Pharma, Most Drugs deals in U.S. Market, As U.S. Currency is $, If Bank Nifty Rises , Rupees Becomes Strong against $, Hence Bank Nifty increase with decrease in Cnx Pharma ? Please clarify my doubts.

nagesh

2

From 2013-14 onwards, CNX Pharma is considered defensive sector/stock. When the overall market(NIFTY, BankNIFTY) decreases, the money is rotated into the defensive sector/stocks. so, respective increase is observed in the pharma sector. Earlier, CNX FMCG was being considered defensive sector.

I don’t think, USDINR currency matters much for the pharma sector compared to the IT sector.

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