Sensex Opens Deep in Red, Pharma Stocks Continue to Slide

Asian stock markets are lower in morning trade tracking losses in Wall Street. The Nikkei 225 is off 2.01% while the Hang Seng is down 1.45%. The Shanghai Composite is trading down by 0.79%. Overnight, the US markets suffered the worst drop in five months on concerns about US president Donald Trump's ability to push through major reforms. Stock markets in Europe also closed their previous session in red.

Indian share markets too have opened the day on a weak note. BSE Sensex is trading lower by 166 points and NSE Nifty is trading lower by 56 points. Meanwhile, S&P BSE Mid Cap and S&P BSE Small Cap are trading lower by 1.5% and 0.6% respectively. Losses are largely seen in auto stocks, metal stocks and pharma stocks.

The rupee is trading at 65.31 against the US$.

Wockhardt share price began the trading day on an optimistic note (up 1.5%) after the company received approval from the US health regulator to market generic version of Wyeth's Zosyn, used for treating bacterial infections, in the American market.

In another development, Glenmark Pharmaceuticals USA has received approval from the United States Food and Drug Administration (USFDA) for Clobetasol Propionate Ointment, used for treatment of various skin conditions.

Glenmark Pharma share price opened the trading day down by 1.1%.

Dr Reddy's Laboratories shares also hit a 52-week low on Tuesday after the company's Duvvada plant received 13 observations which included repeats from a November, 2015 warning letter. Aurobindo Pharma, Sun Pharmaceuticals Industries and Cadila Healthcare each lost over 1-2% in value.

Dr Reddy's share price continues to trade week and has opened the day down by 1.5% on the BSE.

Moving on to news from stocks in investment & finance sector. According to an article in The Economic Times, non-banking financial companies (NBFCs) will demonstrate broadly stable asset quality, but delinquencies could rise over the next 1-2 quarters as notebandi adversely affects collections across asset classes.

Meanwhile, IDBI Bank share price has opened the trading day up by 0.1% after it was reported that the company will raise up to Rs 25 billion through preferential issue of capital to government of India (GoI) and other financial institutions.

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