Shares of Sun Pharmaceutical Industries tanked over 8% on Wednesday emerging as the biggest drag on the benchmark Sensex and pharma index. The shares of Sun Pharmaceutical topped the turnover on both National Stock Exchange and Bombay Stock Exchange. The stock of Sun Pharmaceutical plunged as much as 8.61% to the day’s low of Rs 511.3 on NSE while the stock crashed about 8.57% to the day’s low of Rs 511.45 on BSE. A massive trading volume was observed in the shares of Sun Pharma, as at 12:20 am, more than 1.7 crore shares exchanged hands on both NSE and BSE with about 1.35 crore shares on NSE alone.
The stock of Sun Pharma was the biggest drag on the S&P BSE Sensex, as the sharp decline in the share prices of Sun Pharma alone wiped off as much as 42 points out of the index. Due to the huge plummet in the shares of Sun Pharma, about Rs 11,504 crore has been wiped off from the market capitalisation of Sun Pharma. At the day’s low price of Rs 511.45, Sun Pharma held a market capitalisation of Rs 1,22,709 crore as against Rs 1,34,214 crore a day earlier. Following the slide in the heavyweight shares of Sun Pharma, the benchmark Nifty Pharma index shed 1.8% to the day’s low of 8,753.55.
Among the other components of Nifty Pharma index, shares of Aurobindo Pharma, GlaxoSmithKline Pharmaceuticals, Cipla, Divi’s Laboratories, Cadila Healthcare and Piramal Enterprises lost up to 1.5%. Other than Nifty Pharma index, the metal sector index Nifty Metal also declined notably following the plunge in blue-chip shares such as Hindalco, SAIL, Jindal Steel, Tata Steel, NALCO, MOIL, Vedanta, APL Apollo and Coal India.
Meanwhile, Indian stock markets retreated from the day’s high with Sensex trading nearly 100 points up around 33,800 level with shares of IT companies such as TCS, Infosys and Dr Reddy’s, Kotak Mahindra Bank, ITC, ONGC, HDFC, Reliance Industries, Bharti Airtel, Maruti Suzuki and State Bank of India leading the charge. Shares of the scam-hit Punjab National Bank have managed to hold the losses after the stock witnessed a heavy blow due to the worries over Rs 11,400 crore fraud involving fake LOUs (Letter of Undertakings) by alleged diamond merchant Nirav Modi.