Sector Watch: Nifty Pharma index slips up to 3% dragged by Sun Pharma

Nifty Pharma index emerged as the top sectoral loser on NSE in the morning deals on Monday, weighed down by the shares of Sun Pharmaceutical Industries, which slumped as much as 10 per cent. The index slipped up to 3 per cent in the early morning trade. At 10:20 am, the index was trading 1.61 per cent lower at 9,129, with six constituents in the red and four in the green.

Sun Pharma came under heavy pressure amid reports news reports markets regulator, the Securities and Exchange Board of India (Sebi) is likely to reopen an insider trading case against the drug major as well as probe alleged lapses by some of its promoters and other entities in raising funds overseas.

“The market regulator was in receipt of a 150-page letter in which the whistle-blower accused the company of committing corporate governance and tax-related lapses, besides other securities market-related violations,” the Business Standard reported quoting regulatory sources.

Last week, the stock touched a six-month low after a foreign brokerage raised concerns about corporate governance practices at the drug major. 

At 10:20 am, shares of Sun Pharma were trading 7.23 per cent lower at Rs 457, Biocon was trading at 619.80, down 0.73 per cent while shares of Cipla were trading around 0.27 per cent lower at 539.40 on NSE, as compared to a 0.34 per cent rise in the Nifty 50 index.