The Nifty Pharma index was trading 2% lower on sell-off in Glenmark, Sun Pharma and Dr Reddy’s. The Pharma index is trading at 7,671 levels, down 181 points or 2.30%. It had earlier touched a day's high of 7,866.20 and a day's low of 7,550.55.
The breadth within the NSE Pharma index is negative with 7 shares declining and 3 shares advancing.
Glenmark Pharma slumped ~8% and is among top losers on the pharma index, followed by Sun Pharma, Dr Reddy’s, Lupin and Cadila falling in the range of 2-6% respectively.
Shares of Dr Reddy's Laboratories fell 3% after media reports said that the company has received a Complete Response Letter (CRL) from the USFDA for its generic version of contraceptive NuvaRing.
Shares of Glenmark Pharma slipped 8% after the company's consolidated net profit fell 53% at Rs109.28cr for the first quarter ended June 30, 2019, vs. Rs232.99cr in the same period of the previous year.
Shares of Sun Pharma dropped 6% post Q1FY20 results. The company's PAT grew by 31.2% yoy to Rs1,387cr against median consensus estimates of Rs1,101cr. Meanwhile, brokerages have mixed views on the stock. Credit Suisse has a neutral call on the stock with a target price of Rs470, citing Q1 results are in-line with estimates, as per media reports.
Equity benchmark indices extended gains in the late morning trade. The Sensex rallied 389 points at 37,347 levels. The Nifty also jumped 108 points at 11,035 levels.