Sensex Plummets Over 600 Points on Heavyweight Stock Sell-Off
On Friday, the Sensex experienced a significant drop of more than 600 points, primarily driven by a sell-off in heavyweight stocks. Currently, it is trading at 74,370 points, down by 668 points.
Among the Sensex constituents, Sun Pharma is notably dragging down the benchmark, with a decline of 3.5 percent.
The drop in Sun Pharma shares, exceeding 3 percent, follows the company’s Dadra facility receiving an official action indicated inspection classification from the US FDA.
According to Sun Pharma, the US FDA conducted an inspection at the Dadra facility from December 4, 2023, to December 15, 2023, and subsequently determined its inspection classification status as Official Action Indicated. Sun Pharma assured its commitment to achieving full compliance with regulatory standards.
Other sectors witnessing declines include discretionary stocks like Titan and auto stock Maruti, both experiencing drops of more than 2 percent. Additionally, IT stocks such as Infosys, Tech Mahindra, and HCL Tech are down by over 1 percent.
The surge in US inflation, surpassing expectations, has led to an increase in US bond yields. While this trend may negatively impact foreign portfolio investment (FPI) inflows, experts believe it is unlikely to significantly affect the Indian market. V. K. Vijayakumar, Chief Investment Strategist at Geojit Financial Services, stated that the Indian market remains resilient, with the ongoing rally primarily driven by domestic liquidity.
