Indian Indices Continue Sell-Off; Sensex Down Over 550 Points

In response to the above news, the company said that the US Food & Drug Administration (USFDA) inspection conducted at its Roorkee facility of solid dosage formulations during August 2018 has informed to classify the inspection as "Official Action Indicated" (OAI) and that approvals of pending applications or supplements from this site maybe withheld.

The company also added that this will not have any impact on the existing revenues from operations from this facility.

Jubilant Life Science is presently trading down by 4.3%.

Speaking of pharma sector, note that the BSE Healthcare Index has been on a roller coaster ride in the past few years. The period from 2012 to 2015 saw the index go up more than three times.

We believe that pharma companies that invest in creating a pipeline of complex generics or building competencies in alternative dosage forms are better equipped to tackle the changing dynamics in the US generics market as well as in the overall industry.

Moving on to the news from the commodity space, oil prices are witnessing buying interest today, extending gains from Friday when producer club OPEC and some non-affiliated producers agreed on a supply cut of 1.2 million barrels per day from January.

Prices surged on Friday after the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers including heavyweight Russia announced they would cut oil supply by 1.2 million bpd, with an 800,000-bpd reduction planned by OPEC-members and 400,000 bpd by countries not affiliated with the group.

Oil prices have been pulled down sharply since October by signs of an economic slowdown. Meanwhile, the two world's biggest economies, the United States and China, are locked in a trade war which is threatening to slow global growth and battering investor sentiment.

Note that high crude oil prices can be a big worry for the Modi government as well as it has been a big beneficiary of lower crude oil prices.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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