Sensex falls 156 points on Friday to end near 5-month low; Smallcaps and Pharma stocks sink
Shares of pharmaceutical companies were under pressure with the Nifty Pharma index recorded its sharpest intra-day fall in past seven months. According to Bloomberg report, the US prosecutors could file charges by year-end in a criminal investigation of generic makers over suspected price collusion.
Dr. Reddys Laboratories, Sun Pharmaceutical Industries, Glenmark Pharmaceuticals, Cadila Healthcare and Lupin fell between 4%-5% on the NSE. Cipla, GlaxoSmithKline Pharmaceuticals, Divis Laboratories, Piramal Enterprises and Aurobindo Pharma from the Nifty Pharma index were down in the range of 1%-7%. SMS Pharma, Claris Lifesciences, Vimta Labs, Jubilant Life Sciences, Sun Pharma Advanced Research, RPG Life Sciences, Strides Shasun and Aarti Drugs were down 4%-5% on the BSE.
Shares of cigarette makers such as ITC and VST Industries gained upto 4% on BSE after the Goods and Services Tax (GST) Council’s propose to place tobacco products in the 28% tax slab and an additional cess. The current rate of taxation on cigarettes is around 64% and 81% on chewing tobacco.