The major Asian stock markets have opened the day in red. The stock market in Japan, Singapore and China are down by 1.9%, 1.2% and 0.4% respectively, leading the pack of losers. Even, the stock market in the US ended their previous session in red. While, the major stock indices in the Europe ended their previous session on an encouraging note. The rupee is trading at 66.26 per US dollar.
The stock of Amtek is under fire, since some time. The stock has lost, around 83% in last one month. According to a financial daily, the prime reason for the sharp plunge in the stock price is weak quarterly results. The sales from major geographies have been declining. Further, the company has debt of more than Rs 150 bn in its books. This has prompted fears, if the company will be able to meet its financial obligations and thus, leading to a sharp sell-off. The stock has opened down by 12% today.
Major stocks in the pharmaceutical sector have opened their day in red. As per an articles in Business Standard, Cipla is in talks to acquire 'Hetero Drugs' US business. Reportedly, the deal is expected to be valued at $500-550m. This transaction will help the company; to expand its generic drug portfolio. US business currently accounts for roughly 8% of Cipla's total revenue. The company is keen to expand its market share in this region. If the deal fructifies; will be the second largest acquisition by an Indian company in two months in US. Stock of Cipla is trading up by 1.9%.