Sensex corrects over 100 points, Nifty below 9,100; pharma stocks weigh

In the broader market, BSE Smallcap index outperformed the frontline indices to add 0.3%

The benchmark indices on Tuesday pared gains to slip in red even as Asian markets surged to 15-month highs on the prospects of a less-hawkish Federal Reserve policy trajectory.

At 11:37 am, the S&P BSE Sensex was trading at 29,386, down 132 points, while the broader Nifty50 was ruling at 9,091, down 36 points. 

In the broader market, BSE Midcap index underperformed the frontline indices to shed 0.7%, while BSE Smallcap index dipped 0.3%.

Buzzing stocks

Nifty Pharma index (down 2%) was the leading sectoral loser, led by losses in Divi's Labs and Dr Reddy's.

Dr Reddy's Laboratories slipped 5% to hit its 52-week low of Rs 2,602 on reports that the USFDA has found repeat observations from 2015 warning letter.

Shares of Divis Laboratories tanked 20% to Rs 635, also its 52-week low on BSE in early morning trade, after the company said US drug regulator issued an import alert on the company’s Visakhapatnam unit-II.

Idea Cellular slipped nearly 8% to Rs 90 in intra-day trade, extending its previous day’s 9.5% decline on BSE, after Idea and Vodafone have formally announced a merger with the Birla-owned company.

The stock had hit a high of Rs 123.75 on BSE in intra-day trade on Monday immediately after the merger announcement. It has now slipped 27% from those levels.

GST rollout from July 1 

Clearing the way for a July 1 roll-out, the Union Cabinet on Monday approved four Bills on a national goods and services tax (GST).

The decision comes two working days after the GST Council cleared these — Central GST (CGST), Union Territory GST (UTGST), Integrated GST (IGST) and the Compensation Bill. These are now set to be introduced in Parliament within this week, most likely as money Bills and so, not needing approval of the Rajya Sabha, where the ruling National Democratic Alliance does not have a majority.

Global markets

In early trade, MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.1% staying near a 15-month high it touched on Monday, with South Korean shares hitting two-year highs.

Japan's Nikkei dropped 0.8% weighed by financial stocks, which were hurt by lower US yields and exporter stocks, which fell on the yen's gains against the dollar.

While Asian shares have been supported by signs of strong global economic growth, concerns about protectionism cast a shadow after financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States.

(With inputs from Reuters)