Lupin subsidiary buys majority stake in Generic Health

Pharma company Lupin Ltd said its Netherlands-based subsidiary Lupin Holdings acquired a majority stake in the Generic Health by subscribing to the right issue for an undisclosed sum. Following the deal Generic Health has become its subsidiary, Lupin said in a regulatory filing.

Earlier, Lupin Holdings had 49.9% equity stake in Australia-based Generic Health.

On Wednesday, Lupin shares closed 1.6% down at Rs388 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.7% to 19,956 points


Shree Renuka Sugars buys 7% additional stake in NCDEX for Rs38 crore

Karnataka-based Shree Renuka Sugars Ltd said it increased its stake in National Commodity and Derivatives Exchange Ltd (NCDEX) to 12% from 5% by purchasing 26.3 lakh equity shares of the bourse from CRISIL for over Rs38 crore.

Shree Renuka Sugars said it bought the shares at Rs145 per share, amounting to Rs38.1 crore.

CRISIL, the unit of ratings agency Standard & Poor's (S&P) had to reduce its stake in NCDEX to 5% from 12% by September as per the guidelines of the Department of Industrial Policy and Promotion (DIPP). The government has made it must for any foreign entity to limit its stake in a commodity exchange to 5%.

Shree Renuka Sugars exercised its right of first refusal and purchased a 7% stake in NCDEX from CRISIL, it said in a filing to the Bombay Stock Exchange (BSE).
CRISIL is the Indian arm of global ratings agency Standard & Poor's.
Earlier this year, Fidelity reduced its stake in MCX from 9% to 5% to meet DIPP norms.

On Wednesday, Shree Renuka Sugars shares ended 1.7% down at Rs85 on the BSE, while the benchmark Sensex declined 0.7% to 19,956 points.


Wednesday Closing Report: Sideways, with a downward bias

The local indices ended below their psychological levels with sharp cuts on profit booking by institutional investors. The decline was led by Sterlite Industries, which lost over 8% after the Madras High Court ordered the closure of its Tuticorin plant on environmental issues.

Reacting positively to global cues, the Indian market opened in the green and touched its intraday high in initial trade. Profit booking in key heavyweights led the indices lower in the mid-morning session to the day's lows. Sideways movement in the negative terrain with a high degree of choppiness was seen despite the European markets opening higher. There was a gradual and volatile southward movement with the key indices settling near the day's lows.

The Sensex closed below the 20,000 mark at 19,956, down 148.52 points (0.74%). The bellwether index rose to an initial high of 20,234 and tumbled 311 points to a low of 19,923 in today's session. The Nifty breached its crucial 6,000 level to close 38.20 points (0.63%) lower at 5,991. The index swung between an intraday high-low of 6,071 and 5,979, respectively.

The overall market breadth was negative today. The Sensex had 23 declining stocks against seven in the advancing list. The Nifty ended with 36 stocks in the red, 13 in the positive zone and one stock remained unchanged. Among the broader indices, the BSE Mid-cap index shed 0.67% and the BSE Small-cap index fell 0.48%.

The top performers on the Sensex were Tata Motors (up 2.51%), Infosys Technologies (up 0.42%) and Hero Honda (up 0.34%). The losers included Sterlite Industries (down 8.50%), ITC (down 2.66%), Bharti Airtel (down 2.51%), Maruti Suzuki (down 2.50%) and ONGC (down 2.35%).

BSE IT (up 0.24%), BSE Auto (up 0.08%) and BSE Healthcare (HC) (up 0.02%) were the only gainers in the sectoral space today. The sectoral losers were led by BSE Metal (down 1.92%), BSE Fast Moving Consumer Goods (FMCG) (down 1.42%) and BSE Consumer Durables (CD) (down 1.16%).

Two amendments moved by a US senator on restricted hiring of foreign workers and another aimed at preventing fraud and abuse of H-1B and L1 visa could not pass the Senate floor as they were blocked by the Democratic Party.

The two amendments moved along with the Creating American Jobs and End Offshoring Act, were blocked by the Democratic Party, senator Chuck Grassley, its author said on Tuesday. Incidentally, the offshoring act in itself was blocked by the opposition Republican party.

Markets in Asia ended on a firm note supported by a rise in HSBC's China Purchasing Managers' Index to a five-month high in September. However, the Shanghai Composite ended lower, despite the positive economic data. The gains in the region were also supported by speculations that the Bank of Japan will take new steps to boost the economic recovery.

The Hang Seng settled 1.22% higher, Jakarta Composite was up 0.66%, KLSE Composite was up 0.15% higher, Nikkei 225 surged 0.67%, Straits Times rose 0.28%, Seoul Composite was up 0.56% and Taiwan Weighted ended 0.63% higher. On the other hand, the Shanghai Composite was down 0.03%, shedding all its earlier gains.

The Centre today refused to accept the alternative model of Goods and Services Tax (GST), mooted by state GST panel head Asim Dasgupta and a couple of BJP-ruled states.

"We have regretted our ability to accept either the suggestion of Madhya Pradesh, Gujarat or the chairman of the Empowered Committee because they do not, in our opinion, allow the essential features of GST to operate," revenue secretary Sunil Mitra told reporters on the sidelines of a CII seminar.

The US markets ended with small gains overnight as a fall in the dollar on speculations that the Federal Reserve will purchase US Treasury securities in a bid to boost the economic recovery, propped up investors' appetite for riskier assets. The gains came despite a decline in consumer confidence and a fall in home prices. The Conference Board's sentiment index declined to 48.5 this month, the weakest level since February. Another report showed home prices cooled, hurt by a slump in sales following the end of a government tax incentive.

The Dow gained 46.10 points (0.43%) at 10,858. The S&P 500 rose 5.54 points (0.49%) to 1,147. The Nasdaq gained 9.82 points (0.41%) to 2,379.

On the global front, a rise in HSBC's China Purchasing Managers' Index to a five-month high in September pointed to renewed momentum in the industrial sector, the backbone of China's economy.

The index, which is designed to provide an early indication of conditions, rose to 52.9 from 51.9 in August, mainly reflecting stronger gains in output and new business. A reading above 50 indicates expansion on the month; a figure below 50 denotes contraction.

Foreign institutional investors were buyers of Rs573 crore worth of shares on Tuesday. Domestic institutional investors were sellers of stocks worth Rs905 crore on the same day.

The Madras High Court on Tuesday ordered closure of Vedanta group company Sterlite Industries' (down 8.50%) copper smelting plant at Tuticorin after noting that the company has failed to comply with environmental issues.

The court held that the plant was within 25km of an ecologically fragile area and the company has failed to develop a green belt of 250metre width around the plant.

State-owned Oil and Natural Gas Corporation (ONGC) (down 2.35%) has sought legal opinion from the Solicitor General of India on its rights in the $9.6 billion Cairn-Vedanta deal.

ONGC sought opinion from the second highest law officer of the country after its partner Cairn Energy Plc stated that the UK firm's sale of majority stake in Cairn India to Vedanta Resources will not trigger pre-emption rights of the state- owned firm, a top oil ministry official said.

Anil Dhirubhai Ambani Group (ADAG) company Reliance Capital (down 2.09%) has acquired a 4.98% stake in an infrastructure developer Trinethra Infra through an open-market transaction.

Reliance Capital has acquired 16,08,000 equity shares of Trinethra Infra Ventures Ltd, equivalent to 4.98% of capital by secondary market purchase, the Hyderabad-based infra firm said in a filing to the Bombay Stock Exchange.


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