Sun Pharma rallies, other pharma stocks follow

India's largest listed pharmaceutical company, Sun Pharma spiked by more than 5 per cent in early trade on Monday, on the back of a market buzz that the company's Halol facility will be inspected by the USFDA. At 10:58 hours, the stock of Sun Pharma was quoting 597.30 per share, up 3.21 per cent.

The Halol plant which is crucial for the company's US business was pulled up by USFDA in November 2016 for manufacturing deficiencies. The company has employed a number of remediation to get back the clearance for the plant. The plant is important for the company due to its cost-effective manufacturing facility. The US drug regulator typically informs the company about the inspection which lasts for 7 to 8 days.

Besides Sun Pharma, all pharma stocks were surging during intraday trade on Monday. Nifty Pharma was up at 9,872.45, up 1.77 per cent, whereas BSE Healthcare was up at 15,153.20, up 1.63 per cent. Major drugmakers including Lupin and Cadila Healthcare were up more than 2 per cent, while companies including SMS Pharma, Wockhardt, Orchid Pharma, Syngene, Marksans were up between 7 to 3 per cent.