Shares of all major pharmaceutical companies declined yesterday along with steep fall in other scrips in Bombay Stock Exchange (BSE). BSE Health Care index of 23 major pharma companies declined by 140.03 points to 4029.27 level as against previous close of 4169.30. The prices of all the 23 companies declined during the day. The BSEHC index reached at its 52-weeks peak level at 4602 on June 18, 2008.
In the first two hours of trading, sensex moved down by over 800 points with all other sectoral indices also remained under pressure. The important sectors like metal, banking, consumer goods, oil & gas, realty, banking and public sector were at the receiving end.
Ranbaxy scrip moved down by Rs 34.50 to Rs 419 as at the close of trading. Glenmark Pharma suffered by Rs 52.70 to Rs 601.05 and Divi's Laboratories declined by Rs 44.80 to Rs 1395. Several other major companies like Sun Pharmaceutical, Wockhardt, Opto Circuit, Matrix Laboratories, GSK, Dishman Pharmaceutical, Bilcare and Aurobindo scrips nosedived by over Rs 10 at the close of trading.
The BSE Sensex of 30 major companies opened at 13,666 but declined sharply by over 800 points to 13,177 with in first two hours of trading as against the last Friday's close of 14,000. The index recovered thereafter and closed at 13,531 on account of some buying support and also improvement in global market indices.
The pharma analyst pointed out that overall sentiment is under pressure due to poor law and order situation in the country, fast depreciation of rupee, slower industrial growth and slowdown in major economies in the world. The higher interest rates and credit crunch may put burden on expansion programmes of corporates. Though the first quarter was somewhat better for the pharma units, the second quarter may show some signs of de-growth. The Indian Rupee touched to 45.73 today against US dollar and the same was at Rs 42.91 one month back. This will increase import bill of Indian pharma companies in the current quarter, though it will help to show higher export earnings.