Nifty Pharma index came below attack from bears on Tuesday forcing the sectoral gauge to close 4.33% reduced, the worst single-day fall recorded by the index given that December last year. The sell-off in pharma stocks was led by heavyweights, with Dr Reedy’s Laboratories falling a enormous 10.31% following its quarterly outcomes failed to impress investors. “Weakness in Dr Reddy’s resulted in a massive liquidation in the shares of other pharmaceutical companies, dragging down the Nifty Pharma index by more than 4 per cent during the day, which is the biggest intraday fall since December 2020,” mentioned Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities.
Top pharma losers
–Dr Reddy’s Laboratories – down 10.31%, closed at Rs 4,853 per share
–Aurobindo Pharma – down 4.68%, closed at Rs 908.25 apiece
-Lupin – down 4.31%, closed at Rs 1,115 per share
-CIPLA – down 3.51%, closed at Rs 917 apiece
–Divi’s Laboratories – down Rs 2.46%, closed at Rs 4,800 per share
-Sun Pharma – down 2.35%, closed at Rs 686.9 apiece.
The remaining Nifty Pharma constituents, Biocon, Torrent Pharma, Cadila Healthcare, and Alkem Laboratories had been also in the red on the closing bell. “Bleeding pharma companies pulled down the market due to a weak start to sector earnings season,” mentioned Vinod Nair, Head of Research at Geojit Financial Services.
Dr Reddy’s was the worst-performing stock amongst pharma organizations. The firm reported a net profit of Rs 570.8 crores in the initial quarter of the economic year 2021-22 as compared to Rs 579.3 crores, down by 1% from the preceding year. “We believe that the weaker set of numbers reported by Dr. Reddy’s Laboratories Ltd are due to sales degrowth in API business and muted sales growth in USA business. India business and Europe business have reported sales growth of 69% and 12% respectively,” mentioned Yash Gupta, Equity Research Associate, Angel Broking.