Cipla falls on heavy volumes

The stock dipped 6% to Rs 562 in intra-day trade on media reports that the USFDA inspected the company's Goa facility.

Cipla has dipped 6.5% to Rs 562 on the BSE, its sharpest intra-day fall in past three months, on media reports that the United States Food and Drug Administration (USFDA) inspected the company’s Goa facility. The stock had fallen 7.4% in intra-day trade on May 25, 2016. LINK

Cipla on clarification on news report said that USFDA recently concluded audit of 3 manufacturing facilities at Goa and has issued 4 observations across these facilities.

These observations were primarily procedural in nature and the company has already responded to these observations. The company continues to operate facilities with a high level of compliance & control, it added. LINK

At 12:54 pm, the stock was down 2% at Rs 587 on the BSE, as compared to 0.33% decline in the S&P BSE Sensex.

The trading volumes on the counter jumped more than four-fold with a combined 5.88 million shares representing 0.75% of total equity of Cipla changed hands on the BSE and NSE so far.