After opening the day on a positive note, the indices could not maintain their upward momentum through the day, thus closing well in the red. While the BSE-Sensex today closed lower by 50 points, the NSE-Nifty closed lower by 12 points. Smallcaps and midcaps too witnessed losses today. The BSE Mid Cap index and the BSE Small Cap index closed the day lower by 0.5% and 0.7% respectively. Sectoral indices closed the day on a mixed note.
As regards global markets, Asian indices closed on a mixed note today. The rupee was trading at Rs 62.34 to the dollar at the time of writing.
Pharma stocks have ended the day on a mixed note with Torrent Pharma and Wockhardt leading the gains. However, IPCA Labs and Elder Pharma lost considerable ground in today's trade. The stock of IPCA labs was down by over 12% in today's trade after the company received an US FDA import alert for two of its units located in Pithampur and Silvassa. In the past, IPCA's Indore and Ratlam units too had received a similar alert which led to a correction in stock price then. With respect to today's alert, there is some respite by the fact that two drugs from the Silvassa unit have been exempted which contributed about 70% to US sales in FY14. Had they been banned as well, IPCA's US sales would have come under pressure and the correction in stock price could have been even severe.
As per a leading business daily, pharma major Sun Pharma's management has expressed that its US$ 3.2 bn acquisition of Ranbaxy Laboratories is not going to restrict it from making further large acquisitions. Further, the company is looking to invest more than US$ 300 million in research and development. It is also not considering any job cuts post the closure of the Ranbaxy acquisition. The company's top management has also added that the company's biggest priority and focus going forward would be to win confidence of regulators.