Benchmarks hit fresh intraday low; pharma shares slide

Key indices extended early losses and hit fresh intraday low in morning trade. At 10:20 IST, the barometer index, the S&P BSE Sensex, was down 169.08 points or 0.43% at 39,432.55. The Nifty 50 index was down 46.30 points or 0.39% at 11,785.45.

The S&P BSE Mid-Cap index was down 0.30%. The S&P BSE Small-Cap index was up 0.17%.

The market breadth, indicating the overall health of the market, was positive. On the BSE, 905 shares rose and 887 shares fell. A total of 85 shares were unchanged.

Pharma stocks witnessed selling pressure. Profit booking emerged after the S&P BSE Healthcare index jumped 2.27% to 12,795.83 yesterday, 20 June 2019.

Glenmark Pharmaceuticals (down 2.40%), Cadila Healthcare (down 1.93%), Divi's Laboratories (down 1.87%), Wockhardt (down 1.13%), Cipla (down 0.54%), Dr Reddy's Laboratories (down 0.50%), GlaxoSmithKline Pharmaceuticals (down 0.46%), Alkem Laboratories (down 0.29%) and Piramal Enterprsies (down 0.20%), edged lower. While, Lupin (up 1.61%) and IPCA Laboratories (up 1.43%), rose.

Aurobindo Pharma dropped 5.30% after the company announced that it has received a warning letter dated 20 June 2019 from USFDA relating to its Unit XI, API manufacturing facility situated at Pydibhimavaram, Ranasthalam (Mandai), Srikakulam District, Andhra Pradesh. This action follows the earlier inspection of the site by the USFDA in February 2019. The company announced it will also be engaging with the regulator and are fully committed to resolving this issue at the earliest.

Auto stocks declined. Maruti Suzuki India (down 2.07%), TVS Motor Company (down 1.61%), Ashok Leyland (down 1.03%), Bajaj Auto (down 0.71%), Mahindra and Mahindra (down 0.7%) and Escorts (down 0.24%), edged lower. While, Hero MotoCorp (up 0.30%) and Eicher Motors (up 0.10%), edged higher.

Tata Motors was down 2.17% to Rs 155.70 after Moody's Investors Service downgraded the company's corporate family rating (CFR) and the company's senior unsecured instruments rating to Ba3 from Ba2. The outlook remains negative.

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