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Pharma stocks slide

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A divergent trend was witnessed as the barometer index, the S&P Sensex, was trading with small losses while the 50 index was hovering slightly higher. At 11:28 IST, the barometer index, the S&P Sensex, was down 9.31 points or 0.03% at 31,068.62. The 50 index was up 4.95 points or 0.05% at 9,583. Losses due to slide in IT major and pharma was cushioned by gains in index heavyweight

Domestic stocks nudged higher in early trade on positive Asian stocks. A bout of volatility was seen in morning trade as the key benchmark indices once again regained strength after trimming early gains.

The S&P Mid-Cap index was up 0.13%. The S&P Small-Cap index was up 0.28%. Both these indices outperformed the

The market breadth, indicating the overall health of the market, was positive. On the BSE, 1,321 rose and 987 fell. A total of 137 were unchanged.

Overseas, most Asian stocks were trading higher. US stocks fell for the fourth time in five days as selling in technology resumed.

The Bank of Japan (BOJ) left policy unchanged today, 16 June 2017, maintaining its aggressive monetary stimulus aimed at lifting inflation, which continues to show weakness despite brighter spots elsewhere in the economy. The BOJ board voted to keep its target for 10-year Japanese government bond yields at around zero and a shorter-term interest rate at minus 0.1%, as widely expected by economists. The bank also reiterated that it would continue to buy government bonds at an annual pace of about 80 trillion ($720 billion).

Meanwhile, Washington remained in focus as the special counsel investigating Russia's interference in the 2016 election was said to be planning to interview two top U.S. intelligence officials about whether President Donald Trump sought their help to get the FBI to back off a related probe of former National Security Adviser Michael Flynn.

US markets have risen since November's election, in large part on bets that Trump's economic agenda would accelerate growth and stoke corporate profits. However, various controversies with his administration have been seen as reducing the odds he can get those initiatives passed.

Back home, pharma declined. Lupin (down 4.13%), Cadila Healthcare (down 1.81%), Cipla (down 1.51%), Dr Reddy's Laboratories (down 2.32%), Glenmark Pharmaceuticals (down 0.05%), Sun Pharmaceutical Industries (down 1.47%), GlaxoSmithKline Pharmaceuticals (down 0.93%) and Wockhardt (down 0.2%) edged lower. Alkem Laboratories (up 0.55%) and (up 1.45%) rose.

IPCA Laboratories lost 10.83% after the company said its facilities at Indore, Silvassa and Madhya Pradesh have been banned from the US market. The announcement was made after market hours yesterday, 15 June 2017.

IPCA Laboratories said that drugs manufactured at its facilities at SEZ Indore (Pithampur), Piparia (Silvassa) and Ratlam (Madhya Pradesh) have been banned from the US market by the US Food and Drug Administration (USFDA). The drug regulator cited violation of current good manufacturing norms for taking the step against the company. The USFDA has refused admission to all drugs made at the company's Pithampur and Silvassa facility.

All drugs, except API Chloroquine Phosphate, made at Ratlam (Madhya Pradesh) unit have also been denied entry in the US, it further said. The ban will continue until the company can demonstrate that the drugs manufactured from these manufacturing sites and intended for the US market are in compliance with the current good manufacturing practice regulation (cGMP).

On the macro front, merchandise exports have shown growth of 8.32% in dollar terms valued at $24014.62 million during May 2017 as compared to $22170.62 million during May 2016. Merchandise imports rose 33.09% and were valued at $37856.34 million during May 2017 from $28443.52 million in May 2016. The trade deficit for May 2017 was estimated at $13841.72 million as against the deficit of $6272.90 million during May 2016. The data was released by government after market hours yesterday, 15 June 2017.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, June 16 2017. 11:29 IST
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