After opening the day on a positive note, share markets in India witnessed volatile trading activity and are currently trading below the dotted line. Sectoral indices are trading on a mixed note with stocks in the realty sector and stocks in the capital goods sector trading in green, while stocks in the pharma sector are leading the losses.
The BSE Sensex is trading up by 81 points (down 0.3%), and the NSE Nifty is trading down by 20 points (down 0.2%). Meanwhile, the BSE Mid Cap index is trading down by 0.1%, while the BSE Small Cap index is trading up by 0.3%. The rupee is trading at 64.60 to the US$.
In news from stocks in the pharma sector. Sun pharma share price is under pressure today. The stock fell by as much as 3% in intraday trade today after media reports saying the company received 11 observations from the US Food and Drug Administration (USFDA) for its Dadra unit.
Notably, the US health regulator began a surprise inspection of the Dadra plant in early April. After which the stock tanked to its lowest levels since February.
While inspecting the plant, the US Food & Drug Administration found incomplete lab records at the pharma major’s Dadra plant.
These observations include failure to produce appropriate master or control record for each batch of drugs and failure to properly investigate batches that don’t meet specifications.
Dadra site is the biggest unit for the company after Halol plant, for supplying drug in the United States.
With these observations, the problem for the company may aggravate as its Halol plant has already been under import alert, which contributed 40% to US sales in FY16.
The Dadra plant, which is the company’s second largest USFDA-approved plant after Halol and the estimated revenue generated from the formulations plant stands around US$ 250 million.
Meanwhile, in the first week of current month, the US Food & Drug Administration had said it would lift the import alert imposed on the company’s Mohali (Punjab) manufacturing facility and would also remove the facility from official action initiated (OAI) status.
