Sensex tumbles 585 points; Nifty drops below 14,600

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Extending its losing streak to the fifth consecutive session, equity benchmark Sensex tanked 585 points on Thursday, tracking losses in index majors Infosys, RIL and TCS.

After rallying nearly 500 points earlier in the day, the 30-share BSE index gave up all gains to end 585.10 points or 1.17% lower at 49,216.52. The broader NSE Nifty slumped 163.45 points or 1.11% at 14,557.85.

HCL Tech was the top loser in the Sensex pack, shedding around 4%, followed by Infosys, Dr Reddy’s, TCS, Reliance Industries, Tech Mahindra and NTPC.

On the other hand, ITC, Bajaj Auto, M&M, Maruti and Bharti Airtel were among the gainers.

“Having seen a brisk gap-up opening on positive global cues, domestic equities fell sharply for the fifth consecutive day as sharp rise in coronavirus cases in the country made investors jittery,” said Binod Modi, Head Strategy at Reliance Securities.

A sharp rise in daily COVID-19 cases in India has raised apprehensions about sustainability of ongoing rebound in corporate earnings, he noted, adding that the mounting concerns of possible fresh economic restrictions made enthusiasm of dovish commentary from Federal Reserve short lived for domestic markets.

After its two-day policy meeting, the U.S. Fed reassured investors that it expects to keep its key interest rate near zero through 2023.

Stock exchanges on Wall Street ended with gains in the overnight session.

Elsewhere in Asia, bourses in Shanghai, Hong Kong, Tokyo and Seoul ended on a positive note.

Bourses in Europe were also trading higher in mid-session deals.

Meanwhile, the global oil benchmark Brent crude was trading 0.40% lower at $67.73 per barrel.

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Sun Pharma, Dr Reddy’s, Aurobindo recall products in the U.S. market

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Dr Reddy’s Laboratories is recalling 2,24,710 (500 count) bottles of Atorvastatin Calcium tablets.

Leading home grown drug makers Sun Pharma, Dr Reddy’s Laboratories, Aurobindo Pharma and Jubilant Pharma are recalling products in the U.S. market, the world’s largest market for pharmaceutical products, for various reasons.

As per the latest Enforcement Report by the U.S. Food and Drug Administration (USFDA), Sun Pharma is recalling Cequa ophthalmic solution, which is used to treat chronic dry eye.

The U.S.-based subsidiary of the Mumbai-based drug major is recalling 37,400 cartons (60 vials per carton) of the ophthalmic solution for being “subpotent”, the U.S. health regulator said.

The Princeton (NJ) based firm initiated the nationwide recall of the affected lot on February 22, this year, it added.

Similarly, Dr Reddy’s Laboratories is recalling 10,440 (90-count) and 2,24,710 (500 count) bottles of Atorvastatin Calcium tablets in the U.S. market.

The Hyderabad-based firm is recalling the drug, which is used to prevent cardiovascular disease, for “failed impurities/degradation specifications”, the USFDA said.

The U.S.-based unit of the drug major initiated the nationwide recall on February 19, 2021, and the USFDA has categorised it as Class III recall which is initiated in a “situation in which use of, or exposure to, a violative product is not likely to cause adverse health consequences”.

The drug firm is also recalling 16,449 bottles of Progesterone Capsules (200 mg), used to cause menstrual periods in women who have not yet reached menopause, in the U.S. market for “failed dissolution specifications”.

The company has initiated the nationwide recall of the lot on February 26, this year and the USFDA has classified it as a Class II recall which is initiated in a situation in which use of, or exposure to, a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote.

Another Hyderabad-based drug major Aurobindo Pharma is recalling 1,296 bottles of Famotidine tablets, used to treat gastroesophageal reflux disease, in the U.S. market for presence of foreign tablets.

“Famotidine 20mg and ibuprofen 400mg tablets were found in a lot of famotidine 40mg,” the USFDA noted.

The company initiated the nationwide recall on January 20 and the USFDA has classified the action as Class II.

Besides, Salisbury-based Jubilant Cadista Pharmaceuticals is recalling 6,35,400 cartons of Methylprednisolone tablets, prescribed for its anti-inflammatory and immunosuppressive effects, in the American market due to “Illegible label”.

“Customer complaint received of misalignment print of the printed dosing instructions on the blister card,” the USFDA said.

The company initiated the nationwide recall on February 19 and the USFDA has classified the action as a Class III recall.

Jubilant Cadista Pharmaceuticals is a subsidiary of Singapore-based Jubilant Pharma, which in turn is a wholly-owned subsidiary of Noida-based Jubilant Life Sciences.

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