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    Granules India shares tank 16% after USFDA issues 6 observations

    Synopsis

    Granules India’s shares plummeted 16% to Rs 566 on Thursday after receiving six observations from the USFDA, including issues with equipment cleanliness and quality control procedures. Over 3 crore shares traded as investors reacted to the news.

    Granules India shares tank 16% after USFDA issues 6 observationsETMarkets.com
    Shares of Granules India fell over 16% on the NSE on Thursday to hit the a low of Rs 566 after the drugmaker received six observations from the US Food and Drug Administration (USFDA).

    The selling was amid strong volumes as more than 3 crore shares changed hands on the NSE around 2:30 pm.

    The USFDA issued Form 483 to the smallcap drugmaker with half-a-dozen observations. One of the observations was that the utensils and equipment were not cleaned at appropriate levels. It also noted that there was a failure on part of the company to review any unexplained discrepancy.

    Another observation was that the responsibilities and procedures applicable to QC unit were not in writing and fully followed. Others included, written procedure not being followed along with building and facilities not being maintained to ensure that the products manufactured met quality and purity.

    Shares of Granules India have rallied 85% over the last 12 months while its gains in 2024 so far stand at 38%. This is an outperformance over Nifty which has delivered 25% and 12%, respectively on a 1-year and year-to-date basis.
    Growfast

      Granules India shares are currently trading below their 50-day simple moving average (SMA) of Rs 616 while above their 200-day SMA according to Trendlyne data.

      Momentum indicators RSI and MFI show the stock in a medium range around 53. A number above 70 is seen as overbought while below 30 is seen as oversold.

      The shares of the company ended at Rs 564.80 at close of trade.

      Also Read: D-St investors add Rs 5 lakh crore as HDFC Bank, Airtel lift Sensex 1,000 points

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      (You can now subscribe to our ETMarkets WhatsApp channel)

      (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2024 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

      Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

      Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

      ...more
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