Shares of Dr Reddy's Laboratories and Glenmark Pharmaceuticals declined on reports the latest political developments in Venezuela might impact business prospects of these two firms.
Glenmark Pharmaceuticals (down 4.69%) and Dr Reddy's Laboratories (down 2.05%), edged lower.
The S&P BSE Sensex was down 90.15 points, or 0.36% at 25,220.18.
Media reports suggest that the victory of the Opposition party in the Venezuela National Assembly elections on Sunday, 6 December 2015, might have an impact on Indian drug companies due to a change in the political landscape of the South American country and the many economic reforms the Opposition plans to roll out there.
Reports indicated that the country might even go for a currency devaluation. There is a likelihood that the currency will be converted to market-determined rates from a fixed-rate regime, reports added.
Select drug makers could be significantly impacted in case the government decides to devalue the currency in the near to medium term.
These changes might impact Glenmark Pharmaceuticals and Dr. Reddy's Laboratories, which reportedly earn decent revenues from Venezuela.
Powered by Capital Market - Live News
