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Sensex, Nifty end in red; Dr Reddy's tanks over 5%, Pharma stocks drag
The Indian benchmark indices ended in red with Pharma stocks being the major laggards.
Sensex, Nifty end in red; Dr Reddy's tanks over 5%, Pharma stocks drag

The S&P BSE Sensex ended the day 29,485.45, down 33.29 points while the Nifty50 closed at 9,121.50, down 5.35 points.

Divi's Laboratories Ltd

The United States Food and Drug Administration (USFDA) has issued an import alert at the Divi's Laboratories' Visakhapatnam unit-II.

This means that the imports from the facility can be refused without any prior examination.

The shares of Divi's ended 19.77 per cent lower on the BSE.

The unexpected news from the USFDA is a major hit for the company as the Vishakapatnam plant contributed significantly to the generic API business, said analysts.

The USFDA has issued import alerts on the following products: Levetiracetam, Gabapentin, Lamotrigine, Capecitabine, Naproxen sodium, Altegravir potassium, Atovaquone, Chloropurine, BOC core succinate, 2,4-wing active ester.

The unit II generates about 70 per cent of the total revenues from generic APIs.

Dr Reddy's Laboratories

Shares of Dr Reddy's tanked 5.1 per cent on the on Tuesday's trade to a fresh 52-week low on the BSE.

D-Mart IPO

Avenue Supermarts, the parent firm of D-Mart which is among the most profitable food and grocery retail chains in India, listed at a 105 percent premium to its issue price on Tuesday.

The company's market capitalisation rose to Rs 36,758 crore on the BSE.

It has been admitted to dealings on BSE in the list of 'B' Group Securities.

MARKET LIVE UPDATES:

3.44 PM:

The S&P BSE Sensex ended the day 29,485.45, down 33.29 points while the Nifty50 closed at 9,121.50, down 5.35 points.

The benchmark indices were dragged down by Pharma stocks led by Divi's Labs that tanked over 19 per cent.

Dr Reddy's was the top loser on the BSE falling 5.1 per cent.

Shares of Idea slipped nearly 5 per cent taking the spot as the biggest loser on the NSE Nifty.

Among the gainers were ITC that added 2 per cent to the BSE followed by ONGC and Infosys.

On the NSE, Grasim added nearly 2 per cent to the bourse.

12.43 PM:

Idea Cellular continued its fall for the second session today as the scrip plunged nearly 8 per cent after the company agreed to merge with Vodafon India to become a market leader in mobile phone operator.

The merged entity is worth over USD 23 billion.

Although the shares saw a positive opening, it failed to hold on to the momentum and lost over 25 per cent since the high point it hit yesterday.

The stock is the biggest loser on the bourses.

Analysts are of the view that the competition in the industry is unlikely to subside in the medium term despite the mega merger.

12.12 PM:

Bharti Infratel on Tuesday announced that Nettle infrastructure Investment Ltd will accquire 21.63 per cent stake in the company on or after March 27.

Nettle Infrastructure, a wholly-owned subsidiary of Bharti Airtel, will buy 40 crore equity shares of Bharti Infratel from the parent for an estimated Rs 12,400 crore.

Shares of Bharti Infratel were trading 1 per cent higher at Rs 311.85 per piece on BSE.

11.41 AM:

The S&P BSE Sensex wiped all early gains amid consolidation and was still down by 41 points in late morning trade as investors preferred to stay on the sidelines due to lack of global as well as domestic cues.

Sustained selling was seen in Heathcare, Telecom, Metal and Auto sectors, while buying were seen in Capital goods, FMCG and IT stocks.

Major losers were seen from Dr Reddy, down 4.10 per cent, Axis Bank, down 2.80 per cent, Sunpharma, down 2.72 per cent, GAIL, down 0.84 per cent, Bajaj Auto, down 0.78 per cent and M&M, down 0.73 per cent.

However, Larsen rose by 1.23 per cent, followed by ITC 0.74 per cent, SBIN 0.64 per cent and ONGC 0.60 per cent.

Meanwhile, the foreign portfolio investors (FPIs) bought shares worth a net Rs 56.67 crore yesterday, as per provisional data released by the stock exchanges.

Domestic institutional investors (DIIs) sold shares worth a net Rs 536.21 crore, as per the provisional data.

Globally, Asian shares edged higher on the prospects of a less-hawkish Federal Reserve policy trajectory.

(PTI)

11.22 AM:

The rupee pared initial losses, but was still quoting lower by 2 paise to 65.38 against the American currency on bouts of dollar demand from banks and importers.

The Indian rupee resumed lower by 4 paise at 65.40 per dollar as against Monday's closing level of 65.36 at the Interbank Foreign Exchange (Forex) Market here today.

The rupee fell further at 65.4450 before quoting at 65.38 per dollar at 1030 hours.

The domestic currency hovered in a range of 65.4450 and 65.3750 per dollar during morning deals.

Meanwhile, the dollar index was trading lower by 0.10 per cent at 100.26 against a basket of six currencies in late morning trade.

Overseas, the dollar was on the defensive in Asian trading early today, after Chicago Federal Reserve President Charles Evans reinforced the perception that the US central bank won't accelerate the pace of its interest rate hikes.

(PTI)

10.40 AM:

PHARMA STOCKS

Dr Reddy's has hit a fresh 52 week low after the US FDA's observations did not board well on DRL's Duvvada facility.

The scrip fell over 4 per cent on the BSE. 

The US FDA has issued an import alert in the Unit II of Divi's Labs in Vizag. The stock has come in focus on the market and has fallen.

The shares of Divi's plunged over 17 per cent on the BSE.

10.30 AM:

Pharma stocks take a beating as Sun Pharma falls over 2 per cent while Dr Reddy's take a steep plunge losing over 4 per cent on the BSE.

10.27 AM:

Avenue Supermarts, the parent firm of D-Mart, listed at a 102 per cent premium to its issue price on Tuesday.

READ: D-Mart IPO: Avenue Supermarts lists at 100% premium to issue price

9.17 AM:

The S&P BSE Sensex was opened at 29,561.72, up 42.98 points.

Nifty50 kicked off at 9,143.30, up 16.45 points.

Shares of Dr Reddy's fell to a low, shedding over 2 per cent.

Idea Cellular also contributed to pull the markets lower falling over 3 per cent.

Among the top performers were ITC and Larsen and Toubro on the BSE.

9.17 AM:

Markets expect to open flat and showcase a performance similar to that of yesterday's trade.

9.12 AM:

EXPERT TAKE

"It's difficult to make a time-wise prediction; but price-wise, we continue to expect the Nifty to head towards 9400 - 9600 (price extension of previous up move from recent low of 7893.80) over the next few weeks. Having said that, in between some consolidation or a profit booking (like we in last two days) by momentum traders cannot be ruled out. On the lower side, 9100 - 9050 levels would provide a strong support in the forthcoming week. Traders are advised to keep using such dips to create fresh longs in the market," said an Angel Broking report.

9.00 AM:

REUTERS REPORT

Asian shares clung to their 15-month highs on Tuesday while the dollar and US bond yields were on the back foot on the prospects of a less-hawkish Federal Reserve policy trajectory.

Japan's Nikkei dropped 0.8 per cent, weighed by financial stocks, which were hurt by lower US yields and exporter stocks, which fell on the yen's gains against the dollar.

China's Shanghai Composite was up 0.22 per cent while Hang Seng Index gained over 50 points.

While Asian shares have been supported by signs of strong global economic growth, concerns about protectionism cast a shadow after financial leaders of the world's biggest economies dropped a pledge to keep global trade free and open, acquiescing to an increasingly protectionist United States

Wall Street shares drifted lower on Monday as investors worried that President Donald Trump's plan to cut taxes and boost the economy could take longer than previously expected.

"Any fiscal spending by the Trump administration will not come until August at earliest and probably much later. So any economic benefit of that will show up only next year," said a senior trader at a European bank.

"So the markets are gradually pricing that in, winding back their initial rally after the elections."

Although Trump promised in early February to deliver a "phenomenal" tax plan within a few weeks, no such details have been released yet.

"US stocks valuations are getting really expensive, so I expect the market to be capped for now. That also means Japanese shares are unlikely to gain further," said Tatsushi Maeno, senior strategist at Okasan Asset Management.

Expectations that the Federal Reserve will have to step up rate hikes to counter inflationary pressure from Trump's stimulus are also waning after the Fed dropped no hints of an acceleration in credit tightening last week.

Chicago Federal Reserve President Charles Evans, in one of the first official comments after the Fed raised rates as expected last week, reiterated that message on Monday.

He said that two more interest rate hikes this year are likely, disappointing investors who had anticipated a faster path of rate increases.

His comments helped to bring down the 10-year US Treasuries yield to 2.463 percent, its lowest level in two weeks.

Lower yields undermined the greenback's allure, softening the dollar to three-week lows near 112.485 yen.

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