Just to outline fundamental arguments for Pharma sector outperformance here are few points.
1.) India is going to remain one of the biggest drug manufacturing country in foreseeable future.
2.) World's biggest pharma companies don't like to manufacture the drugs by themselves because imagine your manufacturing shutdown by just one notice from FDA. So they will always outsource the manufacturing to multiple suppliers from India and other places to diversify the supply chain. Thus if one is closed due to problems, switch to another !
3.) Nobody like to deal with regulatory headache every day and Pharmaceuticals need to adhere to one of the stringent regulatory requirements in USA and Europe.
You can research the export numbers yourself ! ( little homework ;) )
The trick to trade a pharma company is, buy them cheap when they are facing problems and sell it when they are reporting blockbuster results and stock skyrockets. Well 'sell' here means, to take profit. Don't short stocks if you are not skillful enough.
For Sun Pharma , we are just brushing up our old playbook posted here last year.( http://bombaybulls.com/sun-pharma-looking-for-levels-to-buy-7232015/ ) This example shows, the importance of patience in trading stocks. Our mentioned where we would like to buy came in after 3/4 months. So you need to have patience to wait for the trade to come to you rather than chasing it. Besides, only partial position filled in because one of the trading rule is never to go all in at any one point. So benefit is that even if you are wrong in your assumption about stock going higher, there are good chances that you can escape with little or no harm.