Indian stock markets extended their losing streak Tuesday, primarily on account of a steep fall in pharma stocks. The fall was led by Lupin that plunged more than 13 percent to a new 52-week low on news that a United States Food and Drug Administration (USFDA) audit team inspected its facility at Mandideep, Goa, and made three observations.
The Sensex closed at 24,900, down 0.26 percent, while the NSE Nifty settled at 7,597, a loss of 0.24 percent.
Lupin stock fell to Rs 1,294, a new year-low intraday, but managed to recover later and closed at Rs 1,401.45, a loss of 6.27 percent.
In its clarification to the stock exchanges Tuesday, Lupin said: "We believe that these observations are minor in nature and have already addressed these observations." The Mandideep facilities were inspected by the USFDA.
The news impacted other pharma stocks on the exchanges. The Nifty pharma index closed 3 percent down at 10,665.25, while the S&P BSE Healthcare index lost 2.59 percent.
Glenmark Pharmaceuticals lost 4.78 percent, Cipla down 3.9 percent, Sun Pharmaceutical Industries 2.07 percent, IPCA Laboratories 3.34 percent and Dr Reddy's Laboratories shed 3.02 percent. Alkem Laboratories, however, bucked the trend and gained 1.33 percent.
Sensex stocks that ended the day with gains included Tata Motors, Maruti Suzuki and Axis Bank.
Ashok Leyland hit a new 52-week high of Rs 108 during the day after the company announced that it won defence contracts worth Rs 800 crore to supply 450 units of Field Artillery Tractor (FAT) and other similar Super Stallion vehicles, and 825 units of ambulance.
Can Fin Homes also touched a new 52-week high of Rs 1,125 and closed the day at Rs 1,118.50, a gain of 6.72 percent.
Foreign institutional investors (FIIs) were net buyers of Indian equities worth Rs 513 crore, while domestic institutional investors were net sellers at Rs 556 crore, according to the provisional data released by the National Stock Exchange.
The rupee closed at 66.55 to the US dollar, almost flat from Monday's close of 66.56.