Not enthused by the Budget proposals, Indian share markets pared gains and slipped below the dotted line in the post-noon trading session. Majority of the sectoral indices are trading negative with banking, capital goods and oil and gas stocks being the biggest losers. Only FMCG, consumer durable, IT and realty stocks are trading in the green.
Majority of the domestic pharma stocks are trading in the red with Strides Arcolab and Panacea Biotech being the major losers. However, Dishman Pharma and J B Chemicals are trading strongly. As per a leading financial daily, Cipla has offered to acquire 100% stake in Cipla Medpro South Africa for a consideration of US$ 512 m. The offer will be implemented through a scheme of arrangement and is subject to regulatory and other approvals including approval by Medpro shareholders. The proposed acquisition will be made either directly or through a subsidiary and will largely be funded by internal accruals. The South African market is a fast emerging market with demand for generic drugs projected to grow at around 14% in future. This acquisition is in line with Cipla's strategy to have a sales market outside India.
All the aluminium stocks are trading in the red with Hindalco and National Aluminium Company Ltd. (NALCO) being among the top losers. As per a leading financial daily, Hindalco Industries has announced a lock-out at its aluminium foil manufacturing plant at Silvassa, in the Union Territory of Dadra and Nagar Haveli due to prolonged workers' strike. Set up in 1998, the plant has a capacity of 30,000 tonnes per annum and a rolling capacity of 9 to 100 microns. The products from the plant are supplied to pharmaceutical companies such as GlaxoSmithKline, Pfizer, Lupin, Aventis, Cadila and Torrent. The unit also exports to 11 countries across Europe, West Asia, South Asia, Australia and Far East.