Pharma stocks are trading firm. Ranbaxy and Stride Arcolabs are the biggest gainers. According to a leading financial daily, Wockhardt has been asked to ensure clearing dues to bondholders failing which the Bombay High Court could take charge of the pharma company. As per the Justice D K Deshmukh, Wockhardt will have to declare a date for repayment of Rs 4.73 bn if it wishes to sell off its assets to honour the dues. The matter is scheduled for hearing on September 21, 2011. Earlier, the bondholders had filed a winding up petition against Wockhardt stating that the company's recent corporate debt restructuring is an evidence of its inability to pay debt. The company states that they would make the necessary payment by selling their nutrition business to Danone. However, as per the Court even in such a scenario the secured lenders will have the first claim over the amount of sold assets.
Auto stocks are trading in the green. Ashok Leyland and Tata Motors are the biggest gainers while Bajaj Auto and Exide Industries are the biggest losers. According to a leading financial daily, two wheeler company TVS Motor is planning to increase its three wheeler production capacity by 2,000 units each month by the end of April 2012. The company is currently producing 6,000 units each month and wants to increase it to 8,000 units by next year. This is because of the growing demand for three wheelers. The company sold 4,714 units of three wheelers in August 2011, an increase of 30% as compared to the previous month. Overall the company posted an increase of 14% in sales when compared to the same month in the previous year.