Dr Reddy's Extends Falls on Downgrades

Shares in Dr. Reddy's Laboratories Ltd slipped 2.3 per cent to Rs 2,551, adding to their 4.1 per cent fall on Tuesday as the drugmaker continues to be hit by disappointment over its January-March earnings.

Bank of America-Merrill Lynch downgraded the stock to "underperform" from "buy," and cut its price target to Rs 2,550 from Rs 3,180, citing a "moderation in core earnings and limited upside."

Morgan Stanley downgraded Dr. Reddy's to "equalweight" from "overweight" and lowered its price target to Rs 2,719 from Rs 3,078, saying earnings growth could be hit by a "high base in the US, limited new launch visibility and rising R&D spending."

Copyright: Thomson Reuters 2014