Nifty's rare 4-month losing streak just ended; history says a 40% rally could be next

The broader market sentiment is turning positive, which could lift all sectors, including pharma. However, pharma's specific drivers like regulatory approvals and product pipelines remain crucial.

While the overall market looks bullish, for pharma, focus on companies with strong product pipelines and positive regulatory news, using a long bias with strict stop-losses.

For Indian markets, the practical takeaway is that this story carries a bullish read rather than a generic headline. Traders should judge it by actual market follow-through, not by narrative intensity alone.

Watch whether the market validates this read through price action, volume, and breadth. If the headline matters, the signal should show up in execution, not just in commentary.

• •Nifty ended a rare four-month losing streak.
• •DSP data shows average one-year returns of 40.7% after similar phases.
• •Fund managers are signaling capitulation and increasing equity exposure.
• •Market indicators suggest the recent correction may have marked a bottom for Indian equities.
• •Risk flag: Global economic slowdown impacting discretionary spending on healthcare.