Weakness persisted on the bourses as caution prevailed ahead of the outcome of the Reserve Bank of India's (RBI) monetary policy meeting. At 14:25 IST, the barometer index, the S&P BSE Sensex, was down 231.41 points or 0.64% at 35,902.90. The Nifty 50 index was down 77.90 points or 0.72% at 10,791.60. Pharma shares declined.

Provisional data released by the stock exchanges showing that local and foreign funds, both, were net sellers of Indian stocks yesterday, 4 December 2018, also weighed on the sentiment. The trading activity on that day showed that the foreign portfolio investors (FPIs) sold shares worth a net Rs 55.89 crore. Domestic institutional investors (DIIs) sold shares worth a net Rs 521.38 crore.

Domestic stocks edged lower in early trade as key index pivotals dropped. Key benchmark indices traded with weakness in morning trade after a subdued start to the day's trading session. Weakness persisted on the bourses in afternoon trade.

In broader market, the S&P BSE Mid-Cap index was down 1.11%. The S&P BSE Small-Cap index was down 1.08%. Both these indices underperformed the Sensex.

The market breadth, indicating the overall health of the market, was weak. On the BSE, 738 shares rose and 1713 shares fell. A total of 160 shares were unchanged.

Vedanta (down .3%), Tata Motors (down 3.1%), Tata Steel (down 3.09%), M&M (down 2.65%) and Coal India (down 2.28%), were the major Sensex losers.

Pharma shares declined. Cipla (down 2.84%), Dr Reddy's Laboratories (down 1.04%), Sun Pharmaceutical Industries (down 5.06%), Alkem Laboratories (down 0.34%), GlaxoSmithKline Pharmaceuticals (down 1.24%), Aurobindo Pharma (down 2.75%) and Wockhardt (down 2.35%) edged lower. Cadila Healthcare (up 1.84%) and Glenmark Pharmaceuticals (up 0.74%) rose.

Lupin fell 3%. The company announced today, 5 December 2018, the completion of United States Food and Drug Administration (US FDA) inspections carried out at its Mandideep location. Lupin's Mandideep location houses the company's cardiovascular Pril API facilities, Cephalosporin API facilities and Cephalosporin Solid Oral Dosage Form facility. These inspections were carried out between November 26 and December 4,2018.

The inspection at Unit-2, the Cardiovascular Pri l API facilities closed with 4 observations. The inspection at Unit-I, the Cephalosporin facilities closed with 10 observations for the Cephalosporin API facilities and 8 observations for the Cephalosporin Solid Oral Dosage Form facility. The observations are largely procedural in nature with some gaps identified in the aseptic processing areas of the Cepha losporin API block and the company is confident of addressing them satisfactorily. As a company, Lupin has committed to an enhanced Quality Management System and Compliance Sustainability Plan. The Lupin Mandideep site is already executing the plan, which also serves to address some of the concerns ra ised during this inspection. There are no new DMF and ANDA applications pending for review or approval from Lupin's Mandideep facilities.

Further, Lupin announced the launch of Silodosin Capsules 4mg and 8mg, having received an approval from the United States Food and Drug Administration (USFDA) earlier. Lupin's Silodosin Capsules 4mg and 8mg; is the generic equivalent of Allergan's Rapaflo. An alpha-1 adrenergic receptor antagonist, it is indicated for the treatment of the signs and symptoms of benign prostatic hyperplasia (BPH). Rapaflo had annual sales of $198.5 million in the US (IQVIA MAT September 2018). The announcement was made after market hours yesterday, 4 December 2018.

On the political front, state assembly elections will be closely watched. Polling in Rajasthan and Telangana will be held tomorrow, 7 December 2018. Assembly elections in Madhya Pradesh and Mizoram were held on 28 November 2018. The election to the 90-member Chhattisgarh Assembly was held in two phases 12 and 20 November 2018. Counting of votes will be held across all the five states on 11 December 2018.

Overseas, European stocks were lower as resurgent trade worries worsened investor fears about global economic growth. Investors are likely to closely monitor any further political developments as lawmakers continue to debate Westminster's Brexit plan. Prime Minister Theresa May suffered a series of embarrassing defeats in Parliament on Tuesday.

Asian stocks dropped in the wake of the biggest slide in stocks on Wall Street. Activity in China's service sector expanded at a faster pace in November, a private gauge showed Wednesday. The Caixin China services purchasing managers' index rose to 53.8 in November from a 13-month low of 50.8 in October, Caixin Media Co. and research firm Markit said.

Doubts surrounding the US and China's ability to achieve a concrete deal to avoid new, or expanded, bilateral tariffs are rising, as investors focused on the lack of specific concessions made by China at last weekend's G-20 meeting in Argentina, where President Donald Trump and Chinese President Xi Jinping met.

US financial markets will remain closed Wednesday for a national day of mourning to honor former President George H.W. Bush. US stocks finished sharply lower Tuesday, logging their worst day in nearly a month, as skepticism mounted over the significance of an agreement reached by the US and China to postpone new tariffs.

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