Sensex Trades Dull; Bank Stocks Lead Losses

After opening the day in the red, share markets in India have continued the downturn and are presently trading below the dotted line. Sectoral indices are trading mixed with stocks in the banking sector and stocks in the power sector trading in the red. While stocks in the metal sector are trading in green.

The BSE Sensex is down by 135 points (down 0.4%) and the NSE Nifty is trading down by 53 points (down 0.5%). Meanwhile, the BSE Mid Cap index is trading down by 0.5%, while the BSE Small Cap index is trading down by 0.1%. The rupee is trading at 64.49 to the US$.

In news from stocks in the pharma sector. Dr Reddy’s share price is among the most active stocks today as the company received an establishment inspection report (EIR) from the US Food and Drug Administration (USFDA).

The company received the establishment inspection report (EIR) for its for its formulations manufacturing plant-3 in Hyderabad.

As per USFDA, after the completion of an inspection of a facility, an EIR is issued to a company detailing inspection findings.

On April 28, 2017, Dr Reddy’s Laboratories (DRL) was issued form 483 with 11 observations at its plant-3 at Bachupally, Hyderabad relating to deviations from good manufacturing practices. The company had then clarified that most of these observations were procedural in nature. These observations reflected the need to improve people capabilities and strengthen documentation and laboratory systems.

At the time of writing, Dr Reddy’s share price was trading up by 3.5%.

Indian pharma companies catering to the US markets are breathing a sigh of relief. After being adversely affected by import bans and the suspension of new drug approvals from manufacturing facilities in the past three years, there has been a sharp pick-up in new drug approvals in FY17. With an aim to lower the overall healthcare costs in the country, the US Food and Drug Administration (FDA) approved a record 763 generic drugs for the financial year ending 30th September. As per Mint Analysis, Indian pharma companies received 295 approvals accounting for 40% of the overall approvals during the year.