Indian equity markets continued to trade in the positive during the last two hours of trade on buying in index heavyweights. Barring auto stocks, all sectoral indices were trading firm led by consumer durables and IT stocks.
Indian pharma stocks are trading strong led by Panacea Biotech and Cadila Healthcare. As per a leading financial daily, one of the minority shareholders of Sun Pharmaceuticals, Guardian Point has asked for revision of offer price in Taro deal. We may note here that in 2007, Sun Pharma offered to buy out Taro Pharma for US$ 450 m but could only manage to obtain management control last year after a legal battle with Taro's former promoters. Since then, Sun Pharma has constantly been under pressure from Taro minority shareholders to revise the price upwards of US$ 24.5. Looking at the improved performance form Taro, the minority shareholders have been demanding a higher price. In April this year, two other minority holders Raging Capital and Grand Slam Asset management too demanded that Taro reject Sun Pharma's offer price.
Auto stocks are trading in the red led by Maruti Suzuki and Bharat Forge. According to a leading financial daily, Maruti Suzuki has stopped production at one of its factories in Manesar after workers attacked managers at the plant and set fire to company property. At least 40 managers and executives were sent to hospital with injuries. The labour unrest followed the suspension of a worker by the company. Union leaders have accused Maruti of taking action against workers without any reason. To resolve the issue amicably, members of the senior management met the union. During the talks, the workers attacked the members of the senior management, executives and managers. Any sustained shutdown of the Manesar factory would be a blow for the carmaker, which lost over USD $500 m worth of production last year due to weeks of labour unrest at the same plant.