Sensex Finishes In The Red; Dr. Reddy’s Lab Falls On Weak Q3 Performance

Indian share markets finished in the red snapping a six-day record-setting rally on the last session of January expiry in the derivatives segment. At the closing bell, the BSE Sensex closed lower by 111 points and the NSE Nifty finished lower by 16 points. The S&P BSE Mid Cap finished down by 0.8% while S&P BSE Small Cap finished down by 0.7%. Losses were largely seen in PSU stocks, realty stocks and auto stocks.

Asian stock markets finished broadly lower today with shares in Japan leading the region. The Nikkei 225 is down 1.13% while Hong Kong’s Hang Seng is off 0.92% and China’s Shanghai Composite is lower by 0.31%. European markets are mixed today. The CAC 40 is up 0.29% while the FTSE 100 gains 0.14%. The DAX is off 0.15%.

The Rupee was trading at Rs 63.50 against the US$ in the afternoon session. Oil prices were trading at US$ 66.11 at the time of writing.

Dr. Reddy’s Lab share price fell 2.2% in today’s trade after the company’s quarterly net profit slumped nearly 40%to Rs 3.03 billion in the third quarter ended December 2017, below an average analyst estimate of Rs 3.4 billion. The company had reported a net profit of Rs 4.70 billion in the corresponding quarter of last year.

The company’s net profit declined third consecutive quarter as pricing pressures in the US hit sales.

Revenue from the company’s generics business in North America fell 3% to Rs 16.07 billion. Revenue from its Europe generics business dropped 7% to Rs 2.01 billion due to pricing pressures and temporary disruptions in supply.

In another development, Biocon share price plunged 4.4% in today’s trade after the company’s consolidated net profit declined 46% to Rs 919 million in the quarter ended December 2017 as interest and depreciation costs relating to its Malaysia facility rose.

The company’s net sales rose 1.3% to Rs1,057.9 crore during the quarter from a year earlier.