Metal stocks led losses as key benchmark indices slumped in mid-afternoon trade. At 14:17 IST, the barometer index, the S&P BSE Sensex, was off 616.45 points or 2.39% at 25,148.33. The 50-unit CNX Nifty was currently down 185.50 points or 2.37% at 7,637.50. The Sensex hit its lowest level in more than 13 months when it plunged 645.72 points at the day's low of 25,119.06 in intraday trade. The Nifty hit its lowest level in more than a year when it plunged 196.15 points at the day's low of 7,626.85 in intraday trade. The steep slide on the domestic bourses materialized as world stocks fell on global growth worries.
European shares fell sharply. Asian stocks were in red on caution ahead of the influential monthly US job data for August 2015. The job data could be a key factor for the US Federal Reserve on its decision whether to raise interest rates from current near zero at its two-day monetary policy meeting which begins on 16 September 2015. Trading in US index futures indicated that Dow may slide 148.50 points at the opening bell today, 4 September 2015.
Closer home, the broad market depicted weakness. There were more than five losers against every gainer on BSE. 2,158 shares declined and 377 shares rose. A total of 84 shares were unchanged. The BSE Mid-Cap index was off 2.46%. The BSE Small-Cap index was down 2.88%. The decline in both these indices was higher than Sensex's decline in percentage terms.
In sector trends, pharma stocks dropped. Wockhardt (down 6.21%), Strides Arcolab (down 5.19%), Dr Reddy's Laboratories (down 4.01%), Divi's Laboratories (down 3.43%), Ipca Laboratories (down 3.84%), Sun Pharmaceutical Industries (down 3.16%) and GlaxoSmithkline Pharmaceuticals (down 0.41%) edged lower.
Cipla lost 1% at Rs 650.30. Cipla during market hours today, 4 September 2015, announced acquisition of two US-based pharma companies for total cash consideration of $550 million. The cash consideration payable for acquisition of InvaGen Pharmaceuticals Inc. is $500 million and the cash consideration payable for the acquisition of Exelan Pharmaceuticals Inc. is $50 million. Cipla said that the acquisition of these two US based companies will give the company scale in the US generics market through a wide range of product portfolio in CNS, CVS, anti-infective, diabetes and other value added generics. The revenue of these two companies combined stood at $225 million for trailing twelve months ended 30 June 2015.
Lupin dropped 0.62% at Rs 1,851.50. Lupin's US subsidiary Lupin Pharmaceuticals, Inc. (Lupin) has launched a generic antidepressant medicine Duloxetine 40 mg Delayed-Release (DR) Capsule in the United States. Lupin's Duloxetine 40 mg delayed-release (DR) capsule is the first and only generic Duloxetine formulation to become available in 40 mg dosage strength in the US. The annual market size of the branded and generic versions of antidepressant Cymbalta 20 mg, 30 mg and 60 mg capsule strengths is approximately $1.05 billion in the US, as per IMS MAT June 2015 data.
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Glenmark Pharmaceuticals declined 5.04% at Rs 1,013. The company's US subsidiary Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (US FDA) for Voriconazole Tablets, 50 mg and 200 mg, the therapeutic equivalent of Vfend Tablets, 50 mg and 200 mg of PF Prism C.V. (Prism). Glenmark Pharmaceuticals made the announcement before market hours today, 4 September 2015. According to IMS Health sales data for the 12 month period ended July 2015, the Vfend market achieved annual sales of approximately $91.4 million in the US.
Meanwhile, Glenmark Pharmaceuticals' wholly owned Swiss subsidiary, Glenmark Pharmaceuticals S.A. has announced that GBR 830, a novel monoclonal antibody has completed clinical phase 1 dosing.
Telecom stocks declined. Reliance Communications (down 3.1%), Tata Teleservices (Maharashtra) (down 2.87%), Mahanagar Telephone Nigam (down 2.61%) and Idea Cellular (down 0.9%) edged lower. Bharti Airtel (up 0.56%) edged higher.
Among individual stocks, Avanti Feeds gained 1.77%, with the stock extending previous session's 7.1% rally triggered by the company's announcement that it has scheduled a board meeting on 12 September 2015 to consider stock split. Avanti Feeds also said that the board of directors will also consider transfer of shrimp processing business to Avanti Frozen Foods, a wholly owned subsidiary of Avanti Feeds.
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