Shares of Dr. Reddy’s, which plunged 8%, were leading the index’s fall. Shares of the company declined after global investment bank and financial services company Jefferies Group retained "underperform" rating on the company as its Bachupally plant received Form 483 with 11 observations includes four repeat observations.
As per the investment bank, the clearance for Bachupally unit by USFDA could take time and believes that observations related to the facility structure are negative.
This is a formulations facility which underwent the USFDA audit recently. The company has not disclosed the nature of the observations and has said that it would address them comprehensively within the stipulated timeline to the USFDA.
Shares of Glenmark Pharma and Sun Pharma also contributed to the fall declining 5% and 4%, respectively. Shares of Divis Lab, Lupin, Piramal Enterprises, Cadila, Aurobindo Pharma, and Biocon declined 3% each, while those of Cipla slumped 1%.
Meanwhile, equity benchmark indices were trading in the red on Friday with the Sensex slipping 183 points to 35,693 points. The Nifty also dropped 69 points to 10,677 levels, well below its key levels support level of 10,700.