Pharma Sector Weight in Sensex to Hit an 8-year Low: Motilal Oswal

The weightage of healthcare in the S&P BSE Sensex will be at an eight-year low with the exclusion of Dr. Reddy’s Laboratories, said Motilal Oswal Securities in a report. The S&P BSE Sensex has been reshuffled with Vedanta will be replacing Dr. Reddy’s Labs.

The drop in weightage is also due to the significant under-performance of the sector over the last two years. Sun Pharma (weight: 1.7%) will be the only healthcare stock in the benchmark index.

Over the years, the sectoral representation in the Sensex has undergone a sea change in consonance with the changes in the underlying economy – new sectors have evolved, while some of the erstwhile dominant sectors have lost relative importance in the new India, said the report.