India Stocks Fall as U.S. Price-Fixing Probe Rattles Drugmakersby
Sun Pharma worst performer on Sensex; falls to one-month low
Software gauge rallies to 6-week high; Tata Consultancy rises
Indian stocks declined for a second day as drugmakers tumbled on speculation a U.S. justice department inquiry into price fixing could be expanded further, potentially hurting revenues in an important export market.
Sun Pharmaceutical Industries Ltd. was the worst performer on the S&P BSE Sensex, sliding 4.2 percent, to its lowest level in five weeks. Cipla Ltd. and Dr. Reddy’s Laboratories also dropped. Software makers gained on speculation export revenues will grow after the Federal Reserve raised interest rates, boosting the dollar.
|Index||Change (%)||Size and Scope|
|BSE Sensex||-0.3||Second session of declines|
|BSE Healthcare||-1.4||Three-week low|
|BSE IT||+0.6||Six-week high|
“Drugmakers fell as the U.S. expanded the scope of the probe on drug price fixing,” said Purvi Shah, an analyst with Sharekhan Ltd. in Mumbai. “Also, Trump policy changes will lead to continued pricing pressure in the U.S. Slowing product approvals and stringent actions by the Food & Drug Administration in the recent past is also weighing on sentiment.”
- Tata Consultancy Services Ltd. +2.3%, most in three weeks
- Mandhana Retail Ventures Ltd. +6.3% after Indian billionaire investor Rakesh Jhunjhunwala picked up a 12.7% stake in the garment maker
- Jewelry maker Gitanjali Gems Ltd. gained 6.9% after the company said it plans a share sale of its Nakshatra unit
- National Aluminium Co. dropped the most since August 2015, after the company’s second-quarter profit missed estimates; Credit Suisse cut its rating to neutral from outperform