After a volatile trading session markets ended lower, giving up earlier gains. Markets ended marginally lower on Monday, snapping four day winning streak, weighed down by pharma shares on worries that the new price control will sharply reduce drug prices thereby impacting growth and profitability.
The BSE Sensex fell 0.30 per cent or 62 points to end at 20,224, while the 50-share Nifty ended down 0.49 per cent or 30 points at 6,157.
Pharma stocks were the biggest underperformers, down 1.8 per cent. Ranbaxy, controlled by Japan’s Daichi, was the top Nifty lower, down 6 per cent, while Lupin extended losses too.
Lupin fell 4.4 per cent on a downgrade by CLSA. The drugmaker is likely to face increasing competition after rival Mylan launched generic version of the cholesterol-lowering Tricor tablets.
Among other drugmakers — Cipla and Dr Reddy’s — closed 1.5-2 per cent lower. All these stocks have seen sustained gains over the last fortnight.
Only 15 stocks closed higher on the Nifty, led by Bajaj Auto, Maruti Suzuki and M&M which gained between 1.39 ans 2.24 per cent. Coal India gained 1.3 per cent ahead of reporting numbers later in the day.
With inputs from Reuters.