Downgrade pain for Dr Reddy's Labs

DALAL STREET SPIKES

Aggressive selling in domestic pharma major Dr Reddy's continued as the stock lost another 2.29 per cent in Thursday's trading.

Pharma stocks has been under selling pressure over the past few day's after a leading foreign broking firm downgraded the sector on concerns of falling margins.

Dr Reddy's hit a low of Rs 709.15 in intra-day trades before closing at Rs 717.75 at the BSE. The past few months has seen DRL in sustained decline - from around Rs 1,400 in January. At its current position, the stock is close to its 52-week low.

Recently, the fall in the stock was accentuated after the company reported dismal Q4 ending March 2004 results in late May. FIIs have offloaded this stock during the quarter ended March 31, 2004. As on March 31, 2004, FIIs stake stood at 20.8 per cent from 25.03 per cent as of December 31, 2003.