Stocks
Share prices may head higher: Monday Closing Report

If today’s low holds, the Nifty may go up to 5,000

Extending its losses for the fourth consecutive day, the market closed lower on worries of the debt crisis plaguing Europe and its impact on the world economy. The Nifty's intra-day low of 4,759 today went below its second support of 4,790. The index closed 32 points lower at 4,835. The index's volatile move was on a low volume of shares of 48.89 crore on the National Stock Exchange (NSE), which was the lowest in the past 16 trading days (including today). If the Nifty holds itself above today's low, we may see gains up to the level of 5,000.

The domestic market opened marginally in the positive but failed to maintain the lead and slipped lower soon after the opening bell. The Nifty opened 11 points up at 4,879 and the Sensex added 47 points at 16,209. While the opening figure of the Sensex was its intraday high, the Nifty rose to the day's high minutes later, with the index touching 4,880.

However, the decline in the Asian markets in morning trade on fears of a Greece default weighed on the domestic market, pushing it lower in initial trade. Offloading by institutional investors resulted in the markets taking a southward journey in subsequent trade.

The benchmarks touched the low point of the day in late-morning trade with the Nifty falling to 4,759 and the Sensex sliding to 15,801. Buying in IT and banking stocks helped the market bounce back and touch Friday's closing figure, but sellers became active once again to push the benchmarks down.

The market continued to drift lower and closed in the red for the fourth day in a row. At the end of trade, the Nifty was 32 points down at 4,835 and the Sensex settled at 16,051, a loss of 111 points.

The advance-decline ratio on the National Stock Exchange (NSE) was 369:1297.

The broader indices underperformed the Sensex today with the BSE Mid-cap index falling 1.47% and the BSE Small-cap index declining 1.67%.

BSE TECk (up 0.50%) and BSE IT (up 0.42%) were settled higher in the sectoral space. On the other hand, BSE Consumer Durables (down 4.95%), BSE Metal (down 2.87%), BSE PSU (down 1.77%), BSE Oil & Gas (down 1.56%) and BSE Capital Goods (down 1.39%) ended at the bottom of the index.

The top gainers on the Sensex were Jaiprakash Associates (up 2.37%), Bharti Airtel (up 1.48%), ICICI Bank (up 1.40%), DLF (up 1.21%) and Cipla (up 0.97%). The laggards were led by Coal India (down 5.46%), Sterlite Industries (down 4.40%), Hindalco Industries (down 3.80%), Hero MotoCorp (down 2.84%) and Jindal Steel (down 2.61%).

The top performers on the Nifty were DLF (up 3.52%), JP Associates (up 3.34%), Ranbaxy (up 2.18%), Ambuja Cement (up 1.80%) and Bharti Airtel (up 1.33%).  The major losers on the index were Tata Power (down 5.82%), Sterlite Ind (down 4.57%), Sesa Goa (down 4.37%), Reliance Capital (down 4.20%) and Hindalco Ind (down 4.07%).

Markets in Asia settled in the negative as announcements from leaders of the Group of Twenty (G-20) nations fell short of expectations. German deputy finance minister Jorg Asmussen stated in Washington on Sunday that additional funding for Greece was unlikely to be granted at a 3rd October meeting.

The Shanghai Composite fell 1.64%; the Hang Seng declined 1.48%; the Jakarta Composite tumbled 3.22%; the KLSE Composite tanked 2.50%; the Nikkei 225 sank 2.17%; the Straits Times lost 1.65%; the Seoul Composite slipped 2.64% and the Taiwan Weighted closed 2.40% lower.

Back home, foreign institutional investors were net sellers of stocks worth Rs1,279.61 crore on Friday. On the other hand, domestic institutional investors were net buyers of stocks worth Rs765.38 crore.

PG Electroplast, which made its debut on the bourses today, closed trade on the NSE at Rs459.50, a huge gain of 118.60% against its issue price of Rs210. The stock opened at Rs 215 and traded in the range of Rs176-Rs84.40. The company's initial public offering (IPO), which was open between 7th and 12th September, was subscribed 1.34 times.

Real estate major Parsvnath Developers on Monday said it has received shareholders' approval to raise up to Rs2,000 crore through the issue of securities to qualified institutional buyers. The company is expected to use the proceeds to reduce its debts to Rs500-Rs700 crore by the end of the fiscal, from the level of Rs1,200 crore as on 30 June 2011. The stock declined 2.44% to end at Rs66 on the NSE.

Eveready Industries India is planning to sell around 60-70 acre of land in Delhi, Hyderabad and Bangalore to pay debt of about Rs200 crore. The company has approached well-known builders, but added that it was in no hurry to sell the land and is looking at clinching a deal in the next 12-15 months. The stock tumbled 4.13% to close at Rs36 on the NSE.

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Dr Reddy’s, JB Chem scrap Rs137 crore deal for prescription biz

The transaction would have helped Dr Reddy's to acquire 20 key brands, including Jocet which could have given the Hyderabad-based firm an entry into $256 million cold and cough market in Russia and CIS markets

New Delhi: Drug major Dr Reddy's Laboratories today said its Rs137.5 crore deal to acquire pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals (JBCPL) in Russia and other CIS countries has been mutually terminated by both the firms, reports PTI.

A source in the company, however, said the deal was called off as "both parties could not come to terms on the operationalisation" of their agreement.

In a statement Dr Reddy's Laboratories said: "...the proposed business deal to acquire the pharmaceutical prescription portfolio of JB Chemicals & Pharmaceuticals in Russia and other CIS countries has been mutually terminated in the overall business interest of both parties."

In a filing to the BSE, JBCPL said both the parties have agreed with immediate effect not to pursue the proposed deal in their overall business interests.

"Accordingly, the proposed deal has been mutually called off," JBCPL said.

Consequently, both JBCPL and Dr Reddy's Russian subsidiaries have also called off their proposed transaction in relation to sale of former's prescription products' inventory to latter, it added.

The two firms had inked a pact on 22 July 2011 with DRL agreeing to acquire JBCPL's prescription products business in Russia and CIS countries for Rs137.5 crore.

The transaction would have helped Dr Reddy's to acquire 20 key brands, including Jocet which could have given the Hyderabad-based firm an entry into $256 million cold and cough market in Russia and CIS markets.

The deal had also envisaged JBCPL supplying finished products for the acquired business.

Post the termination, JBCPL said it will continue to pursue its Russia-CS prescription products business aggressively.

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Elder Pharma shareholders approve 30% final dividend for FY10-11

Elder Pharmaceuticals’ shareholders have also approved the appointment of Alok Saxena as joint managing director of the company for five years

Elder Pharmaceuticals today said its shareholders have approved a final dividend of 30% for the financial year ended 31 March 2011.

Shareholders at the company's annual general meeting (AGM) held today have approved a final dividend of Rs3 per share of Rs10 face value (30%) for the fiscal ended 31 March 2011, Elder Pharma said in a statement.

The company's shareholders have also approved the appointment of Alok Saxena as joint managing director (JMD) of the company for a period of five years, effective from 12 August 2011, it added.

Prior to his appointment as JMD, Alok Saxena was working as director, international marketing, in the company, it said.
 
The shareholders also approved the re-appointment of Joginder Singh Juneja, Eduardo Richter and Urvashi Saxena as directors of the company.

The Mumbai-based drug firm has a presence in niche therapeutic segments like women's healthcare, wound care, nutraceuticals, vitamin supplements, cardiology, diabetes, dermatology, antibiotics and neurology. The company has six manufacturing plants in India, located in Maharashtra, Uttarakhand and Himachal Pradesh.

On Monday, Elder Pharma ended 0.37% down at Rs374.15 on the Bombay Stock Exchange, while the benchmark Sensex declined 0.69% to 16,051.10.

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