Pharma stocks see heavy selling pressure, down up to 6 per cent

New Delhi: Pharma stocks yesterday witnessed intense selling pressure, falling up to 6 per cent in an overall weak broader market, with top sectoral companies collectively losing over Rs 13,000 crore in market valuation.

Shares of Aurobindo Pharma tumbled 5.94 per cent, Cipla went down by 4.89 per cent, Sun Pharma dipped 4.33 per cent, Cadila Healthcare (3.61 per cent), Dr Reddys Lab (1.13 per cent) and Lupin (1.10 per cent) on BSE.

Top pharma firms Sun Pharma, Lupin, Cadila, Cipla, Dr Reddys and Aurobindo together lost Rs 13,688.11 crore in market valuation today. Among others, shares of Orchid Pharma tanked 5.57 per cent, Morepen Lab (4.76 per cent), Lincoln Pharma (4 per cent), Biocon (3.68 per cent) and Neuland Lab (3.68 per cent).

Also, Vivimed Labs fell by 3.67 per vent, Wockhardt (3.67 per cent), Torrent Pharma (3.39 per cent), Divis Lab (3.29 per cent), Dishman Pharma (2.82 per cent), Glenmark Pharma (2.65 per cent).

Lupin, Aurobindo Pharma, Wockhardt and Glenmark touched their respective 52-week low in intra-day trade. Led by losses in these stocks, the BSE healthcare index fell by 2.72 per cent to close at 14,216.70. "The Pharma index was the worst performer on the NSE and the BSE in trading today.

Pharma stocks were spooked by the quarterly results of Taro Pharmaceuticals, which is the overseas arm of Sun Pharma. "The reason Taro Pharma is important for pharmaceutical sector in India is that it is seen as representative of the vast Indian generics business in the US," said Sarabjit Kour Nangra, VP Research - Pharma, Angel Broking.

The BSE benchmark Sensex tumbled 206 points to end at 30,365.25. "Pharma continued to taste bitterness in earnings due to high competition which is impacting the sentiment of the sector for the long-term," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.