In line with the fall in BSE Sensex of 30 scrips, BSE Healthcare Index of 27 major pharmaceutical companies nosedived by 112.20 points today due to heavy selling pressure on account of profit taking. The index closed at 3911.42 from 4023.62 on May 13, 2006. Out of 27 healthcare companies the share price of 23 companies declined sharply. The BSE Sensex also meltdown by over 463 points, biggest intra-day fall since May 17, 2004.
According to analysts, the correction was over due for long time and everybody was expecting it but not so fast and in one trading session. Several shares were moving up despite fundamental support. MNC scrip in the index viz., Aventis Pharma, GSK, Novartis, and Pfizer suffered heavy losses. Aventis Pharma declined sharply by 120.80 pointes in one day to Rs 1849 and GSK declined by 105.90 points to Rs 1306.55. Pfizer and Novartis declined by 14.15 and 19.80 points to Rs 1016.35 and Rs 513.50 as at the close of May 15, 2006.
Losses at Indian counters like Ranbaxy Laboratories, Cipla, Sun Pharma, and Nicholas were limited as compared to MNC scrips. Ranbaxy scrip moved down by 12.15 points to Rs 480.35. Cipla declined by 4.05 points to Rs 265.65, Sun Pharma by 2.65 points to Rs 872.40 and Nicholas by 8.40 points to Rs 229.05. However, few scrips like Dr Reddy's Lab, Divi's Laboratories, Orchid Chemicals and Torrent Pharma declined by Rs 49.15, Rs 59.95, Rs 22.40 and Rs 23.80 respectively.
Though the majority shares in the BSE Healthcare moved down, four companies viz., Biocon, Lupin Strides Arcolab and Wyeth managed to survive and ended positively.