Mumbai: The equity markets slumped sharply on Tuesday dragged down by a 7.5 per cent fall in the shares of Lupin, after the company said the US Food and Drug Administration (FDA) has issued nine observations citing certain deficiencies in standard operating procedures (SOP) followed at its manufacturing facility in Goa.
The FDA observation on Lupin triggered massive selling in some of the leading pharma stocks that are part of the Sensex and the Nifty. While Dr Reddy’s lost close to three per cent, the shares of Cipla and Sun Pharma dropped 2.48 per cent and 2.33 per cent respectively.
Snapping its two-day winning streak, the Sensex dropped 253 points to end the day at 24,551. The broader 50-share Nifty closed at 7,460.6 losing 78.15 points.
The BSE Healthcare index was the biggest loser among the sectoral indices losing 3.01 per cent. “The FDA inspected Lupin’s Goa facility last week and cited 9 observation. The observations relate to inadequacy and adherence to SOPs. We are in the midst of putting together a response to address the FDA’s observation,” it said.
