Indian pharma stocks have opened the day positive note. As per the financial daily, the competition commission of India (CCI) has finally cleared US $ 4 bn deal between Sun pharmaceuticals and Ranbaxy laboratories. However the regulator has put some conditions to it. The CCI has asked both the companies to sell 7 brands which could have adverse effect on the competition, post merger. Consequently, the regulator has given 6 months time for the divestment process. The 7 brands that are supposed to be divested are of less than Rs 500 m. Among these 7 products, Sun has to divest a product, Tamsulosin Plus Tolterodine which is worth Rs 30 m. While, Ranbaxy has to divest 6 brands worth Rs 300 m, the biggest brand among these is Eligard. In all these brands the companies have market share of above 50-60%, and thus CCI has directed to divest them. Since these brands have good market share, we expect both the companies will be able to sell them at premium valuations.
Automobile stocks have opened the day mixed note. As per a leading financial daily, Tata motors has launched a variant of its leading selling brand, Jaguar land rover (JLR) - Jaguar XF. The car is priced at Rs 45.12 lakhs (ex-showroom). The Executive Edition of Jaguar XF is powered by a 2.2 litre diesel engine and comes with a range of features including eight speed automatic transmission and navigation system. As per the vice president Rohit Suri, the new brand will give access to wider audience. Tata Motors has opened up by 0.5%.