Pharma stocks slide on excise duty levy

DALAL STREET SPIKES

Pharma sector stock were hammered in Tuesday's trading following imposition of excise duty on the maximum retail price of all drugs. The new duty came into effect from January 8, 2005.

According to analysts, this will have an adverse impact on domestic operations of drug makers, as per reports. In Tuesday's trading barring a few, most of the frontline and mid-size pharma stocks ended lower on aggressive selling pressure.

Parma pivotals Cipla was down 4.90 per cent to Rs 267.90, Ranbaxy Labs was down 4.72 per cent to Rs 1,109.55 and Dr Reddy's Labs was down 3.83 per cent to Rs 363.75. The BSE Healthcare index ended 105.41 points, or 3.69 per cent, lower at 2,749.10. From a recent high of 3,094.79 touched on 3 January, the BSE Healthcare index has lost 345.69 points, or 11.17 per cent.