"Contra bets are always high-risk, high-return bets. So, one should look for such opportunities. However, only experienced traders can take contra bets as they are risky. I will advise new entrants not to take such trade but for experienced traders and investors. This type of contra bet can be rewarding with the trade that is risk managed."

Global brokerage Morgan Stanley, which recently downgraded the stock to underweight, said the market is ignoring multiple risks including competition, margins, and ROE contraction.

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The Nifty Pharma index was trading 0.46 per cent up at 12182.65.

The stock quoted a 52-week high price of Rs 6573.05 and a 52-week low of Rs 3555.3.

Today is the record date for Navkar Urbanstructure stock split. Navkar Urbanstructure had announced the splitting of shares into face value of Rs 2 from the face value of Rs 10.Friday is the record date for dividend by Punjab National Bank, Indian Hotels Company, Union Bank of India, Sagar Cements, NDR Auto Components, Deepak Spinners and Walchand Peoplefirst.

"This volatility was well expected due to higher inflation and the ongoing Russia -Ukraine war. We already cautioned our investors in our year-beginning note and suggested them to be in cash for some time. However, we are now suggesting our clients to deploy at least 60% of the money back to equity market."

“M&M’s overall capital allocations strategy over the last few years has improved leading to overall improvement in return ratios and we had the management meet recently where they reiterated the strong growth outlook for the overall automotive business, which will drive growth over the next few years. The IT segment is also doing very well.”

Ethereum, the second largest cryptocurrency, jumped 6.86 per cent to $1,160.32. Ethereum has advanced 6 per cent in the last seven trading sessions.