In line with the overall depressed sentiment, BSE Healthcare index of 23 leading pharmaceutical companies declined by 95.81 points at the end of trading session to 3553.62 from its previous close of 3649.43. The BSE Sensex also fall sharply by 616.73 points in one trading day to 12,455 from 13072 on previous closing on March 30, 2007, the last trading day of the fiscal year 2006-07. The fall in the BSEHC was limited as compared to other sectors like Banking, Consumer goods, Metal, Oil and Gas, Automobile, etc.

The steps taken by the Reserve Bank of India (RBI) to curb inflation by increasing key guidance rates - cash reserve ratio (CRR) and repo rate - affected the investor's sentiment severely. The private sector banks started raising their interest rates immediately, which will likely to put addition burden on bottom line of entire corporate sector. The analyst expressed fear and told that the RBI may again announce another interest hike in near future.

The BSE Healthcare index of 23 company opened at 3638.70 in the morning session but same was under tremendous selling pressure and moved down sharply by 95.81 points at the close o the day. Almost all the companies, except Aurobindo Pharma and Novartis, from the index declined. Ranbaxy Laboratories scrip saw a hit of Rs 11.30 and close at Rs 341.30. Divi's Lab moved down by Rs 63.40 to Rs 3015 and Sun Pharmaceutical came down by Rs 24 to Rs 1030. However, Aurobindo managed to stepped up its price by Rs 3.85 to Rs 683 and Novartis by Rs 2.35 to Rs 316 at the close of the day.

The BSE HC reached its 52-weeks peak level at 4154.08 on May 5, 2006 and Lowest at 2804.37 on June 14, 2006.