Sun Pharma Shares Nosedive 3% After Inspection Notice From FDA

Sun Pharma Shares Nosedive 3% After Inspection Notice From FDA

The US FDA has subsequently determined the inspection classification status of this facility as Official Action Indicated (OAI). "We will work with the regulator to achieve fully compliant status.

IANSUpdated: Friday, April 12, 2024, 12:35 PM IST
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Sun Pharma | Image: Wikipedia (Representative)

 Sun Pharma shares fell more than 3 per cent on Friday, after the company's Dadra facility received an official action indicated inspection classification from US FDA.

Sun Pharma Slumps 3%

Sun Pharma said that the US FDA conducted an inspection at the company's Dadra facility from December 4, 2023 to December 15, 2023. The US FDA has subsequently determined the inspection classification status of this facility as Official Action Indicated (OAI). "We will work with the regulator to achieve fully compliant status.

This is for your information and dissemination," Sun Pharma said. BSE Sensex is trading at 74,689 points down by 348 points on Friday. Sun Pharma is down more than 3 per cent. Titan, JSW Steel, HDFC Bank, Asian Paints, Maruti are down more than 1 per cent. The hotter-than-expected US inflation has spiked the US bond yields.

This is negative for FPI inflows but is unlikely to impact the Indian market which is resilient, and the rally is driven mainly by domestic liquidity, says V. K. Vijayakumar, Chief Investment Strategist, Geojit Financial Services. Dips are likely to get bought imparting strength to the market.

US Inflation a Factor

Therefore, investors may use the dips to buy high quality large-caps where the margin of safety is high, he said. From the global equity market perspective, sticky US inflation is a negative since it has reduced hopes of three rate cuts by the US.

But it is important to note that there is a real positive factor in the sticky inflation, and that is the exceptionally strong US economy which is showing no signs of a slowdown, let alone recession.

This resilience of the US economy will support earnings growth and, therefore, the US stock market. This favourable backdrop will be positive for other markets including India, he said.

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