The poor investor sentiment caused by overall grim economic and political situation put significant pressure on share prices of almost all sectors during last three trading days on Bombay Stock Exchange as well as National Stock Exchange. The Rupee depreciation against US Dollar was the main cause of concern among the trading community. The Rupee is continuously depreciated during last one month and closed over Rs.63 today against US Dollar.

The BSE Sensex, of leading 30 companies from all sectors, declined sharply by over 1,060 points during the last three days and closed at 18307.52 points today. Similarly, the BSE Healthcare index of 17 companies also moved down sharply during the three days by 354.91 points to 8761.19 points today. Despite overall better financial performance during the first quarter of 2013-14 from pharmaceutical companies, the scrip price movements were restricted and there was free fall in almost all counters.

Ranbaxy share of Rs.5 each declined by over three per cent during last three trading days to Rs.380.55 today. Sun Pharmaceutical lost by over five per cent and closed at Rs.520.05 as against Rs.550.20 on August 14, 2013. Lupin also declined over six per cent and closed at Rs.794. Major other players like Cipla, Divi's Laboratories, Ajanta Pharma and Elder Pharma also lost heavily. However, Wockhardt scrip moved up by over 7.6 per cent and closed at Rs.473.80 and Strides Arcolab up by seven per cent to Rs.811.65 from Rs.758.55 on August 14, 2013.

According to pharma analysts the adverse exchange rates will not impact adversely to major pharma players as they are exporting over 60-70 per cent of there products to highly regulated markets like US, Europe and Japan. However, exchange rates will put pressure on multinational companies as they are importing large amount of products from their holding companies and marketing in India. However, the payment of FCCBs for Indian companies will hamper the growth. The analyst pointed out that the price controls, patent issue and compulsory licensing may impact the overall outlook and new investments.

The regulatory issues may be another obstacle in growth of Indian companies. Indian majors like Ranbaxy and Wockhardt are facing the hit from US FDA and are under tremendous pressure. Further, Sun Pharmaceutical has provided Rs.2,517 crore during the first quarter for settlement agreement with Pfizer, Wyeth and Nycomed GmbH. Thus, few major companies have to provide huge amounts for settlements during last couple of years which impacted the bottomline.