Steel stocks are trading in the red led by JSW Steel and Jindal Steel. According to a leading financial daily, Tata Steel will pay US$ 471 m to holders of its foreign currency convertible bonds (FCCBs) that are maturing on September 5. The company had issued these convertible bonds in 2007 and bondholders were supposed to give notice of conversion into shares by August 6. However, the company has stated that it did not receive any such notice by the given time and therefore, it will be paying US$ 471 m as principal along with an interest of US$ 1.92 m against the bonds for the last six months. The company, however, did not disclose the conversion price of the bonds.
Pharma stocks are trading strong led by Ranbaxy and Orchid Chemicals. According to a leading financial daily, Cipla is planning to enter into a joint venture with South Africa's Aspen Pharmacare to cater to the Australian market. Under the pact, Cipla would develop generic products, to be launched by Aspen in Australia. The move follows a recent buyout by Aspen in the Australian pharmaceutical space. The company had acquired the over-the-counter and pharmaceutical divisions of Australian drug maker Sigma Pharmaceuticals for US$ 800 m. Cipla, which has traditionally supplied low-cost generic drugs to foreign partners, may see a rise in its export revenue once the joint venture is operational. This is because the Australian pharmaceutical market is relatively small and is growing at single-digit rate and could be a lucrative market for companies manufacturing low-cost products.