Sensex Trades In Green; IT Stocks Lead Gains

After opening the day in green, share markets in India have traded on a volatile note and are presently trading below the dotted line. Sectoral indices are trading mixed with stocks in the pharma sector and stocks in the IT sector trading in green. While stocks in the metal sector are trading in red.

The BSE Sensex is up by 115 points (up 0.3%) and the NSE Nifty is trading up by 50 points (up 0.5%). Meanwhile, the BSE Mid Cap index is trading up by 0.4%, while the BSE Small Cap index is trading up by 0.6%. The rupee is trading at 73.91 to the US$.

In news from stocks in the pharma sector. Dr Reddy’s share price is among top losers today as the company said that the US Food and Drug Administration (USFDA) inspected its Duuvada, Viazg facility and issued eight observations for the same.

The USFDA, after the completion of an inspection of the facility, issued eight observations in form 483 to the company.

As per USFDA, observations are made in Form 483 when investigators feel that conditions or practices in the facility are such that products may become adulterated or render injuries to health.

The fresh round of concerns raised by the USFDA inspectors over the Oncology formulations facility comes as a big set back to the company. In November 2015 US FDA had issued a warning letter to the company after finding serious quality related deviations at three of Dr Reddy’s manufacturing facilities.

At the time of writing, Dr Reddy’s share price was trading down by 2.5%.

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.