In line with other sectors, the pharmaceutical shares continued their southward journey today on account of heavy selling pressure. The Bombay Stock Exchange Health Care (BSEHC) index of 23 major pharmaceutical companies hit hard and declined by over 160 points to 3328.40 on March 5, 2007 from its previous close of 3490.18 on March 2, 2007. Out of 23 companies, only three companies viz., Aurobindo Pharma, Biocon Ltd and Sterling Biotec managed to achieve small improvement. All other pharma scrips suffered heavy losses.
The pharma analysts pointed out that the overall selling by foreign financial institutions in the Asian market triggered the fall in Indian stock prices also. The effect of relationship between Yen and Dollar is impacting the sentiment in Asian markets. The growth rates in US are not showing any better trends to help to improve negative sentiments. The global conditions are very very tough and investors should remain cautious while investing. However, this phase will remain for short time and investors should not make panic selling by incurring losses. Wait and watch is the best policy, advised analysts.
Ranbaxy scrip declined by Rs 26.25 to Rs 321.15 and Glenmark Pharma drifted down by Rs 44 to Rs 503 on BSE. Sun Pharmaceutical saw a fall of Rs 31.20 and Lupin declined by Rs 33.20 to Rs 568.30. Similarly, Dr Reddy's Lab scrip went down sharply by Rs 41.95 to Rs 618.65. Even the major MNC companies like Aventis Pharma, GSK, Pfizer shares came down heavily by Rs 37.50, Rs 15.75 and Rs 7.30 respectively. Divi's Laboratories share received major setback and declined by Rs 247.35 to Rs 2649.75.
The BSE Sensex of 30 companies from various sectors experienced hit of the selling pressure during the day. The Sensex fell sharply by over 471 points to 12,415 on March 5, 2007 from previous close of 12,886.13. The prices of almost all sectors came under selling pressure. The BSE Indices of Automobile, Bank, Consumer Goods, Information Technology, Metal, Oil & Gas and Public Sector Units nosedived by over 200 points.