Swine Flu Linked Drug Makers Rise in India

Mayank Mehta
11 Aug, 2009
New York City

Stocks in Mumbai edged higher on positive market sentiment as several companies issued stock splits and reported new orders. Swine flu treatment related generic drug makers were on the most actively traded stocks. Tata Motors secured debt funding for its UK based Jaguar and Land Rover unit.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai edged higher on positive market sentiment as several companies issued stock splits and reported new orders. Swine flu treatment related generic drug makers were on the most actively traded stocks. Tata Motors secured debt funding for its UK based Jaguar and Land Rover unit.[/R]

Stocks in Mumbai trading edged higher after several companies announced stock splits, Tech Mahindra joint venture won new outsourcing order and finance minister estimated 6% economic expansion despite weak monsoon rains.

The Sensex index in India increased 64.82 or 0.43% to 15,074.59 and CNX Nifty index rose 33.70 or 0.76% to 4,471.35. Among the Sensex 30 stocks, 17 rose and 13 fell.

On BSE trading, 1,352 stocks advanced, 1,280 declined and 95 were unchanged.

India registered sixth death related to swine flu as more people seek treatment in Pune, Mumbai and Chennai. The heightened media coverage in the last one week has also increased investors’ interest in generic drug makers.

Gainers & Losers

Anant Raj Industries surged 9.22% to Rs 125.60 after the stock recovered from 22% in plunge four previous days of trading.

BOC India gained 1.85% to Rs 168 after the company signed a pact with JSL for installation of an air separation unit.

Consolidated Construction Consortium gained 3.50% to Rs 250 after it received an order worth Rs 431 crore.

Elantas Beck India surged its daily limit of 20% to Rs 361.65 on the speculation that the German parent will acquire the company.

Falcon Tyres lost 5% to Rs 845.90 on profit after surging more than five times in the past two months.

Fortis Healthcare rose 1.92% to Rs 103.25 after the company announced the terms of a rights issue.

Gammon Infrastructure Projects soared 5% to daily limit to Rs 103.55 after the company''s board of directors approved a 5-for-1 stock split.

India Infoline rose 2.20% to Rs 127.50 after a block deal of 11.88 lakh shares was executed on BSE at Rs 128.35 per share.

Kinetic Engineering surged its daily limit of 5% to Rs 53.80 after its board approved the sale of some of its non-core assets for Rs 44 crore.

Lupin rose 1.94% to Rs 994.80 after a block deal of 11.60 lakh shares was executed on BSE at Rs 985 per share.

Petronet LNG Ltd increased 2.2% to Rs 66.45 after the company signed an agreement to purchase liquefied natural gas field in Australia controlled by Exxon Mobil Corp.

Sterlite Industries (India) shed 0.51% to Rs 628.75 after the company upped its bid for acquiring the operating assets of the US-based bankrupt copper miner Asarco LLC.

Generic drug makers to treat swine flu gained.

Strides Arcolab jumped 5.84% to Rs 160.50 after the company said that the government has qualified the company as an approved manufacturer of Oseltamivir capsules used in the treatment of swine flu.

Cipla increased 1.17%, Ranbaxy Laboratories added 6.38% and Natco Pharma surged 14.55%.

Tata Motors was up 1.01% to Rs 405 after the company has secured a debt facility for its UK based Jaguar and Land Rover operations.

Tata Steel gained 1.36% to Rs 462.20 after the company plans to raise capital to lower its debt holding.

Tech Mahindra jumped 5.5% to Rs 823.45 after a joint venture of the company received outsourcing contract worth several million dollars.

HDFC Bank sank 0.04% or Rs.0.50 to Rs.1,379.15, ICICI Bank fell 0.3% or Rs.2.70 to Rs.716.60 and State Bank of India rose 1.0% or Rs. 17.80 to Rs.1,729.70.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 61.20 or 0.58% to 10,585.46, Hang Seng index in Hong Kong increased 144.69 or 0.69% to 21,074.21 and CSI 300 index in China higher 11.84 or 0.33% to 3,556.38. ASX 200 index in Australia increased 27.90 or 0.65% to 4,332.00. The FTSE Bursa KL Composite index in Malaysia closed lower 1.72 or 0.14% to 1,186.28.

The Kospi Index in South Korea increased 3.10 or 0.20% to close at 1,579.21. SET index in Thailand closed lower 0.73 or 0.11% to 643.02 and JSE Index in Indonesia increased 9.71 or 0.41% to 2,399.28. The Sensex index in India increased 64.82 or 0.43% to 15,074.59.