Stocks Radar: Divi’s Lab, Aurobindo Pharma, Bharti Infratel
Indian shares climbed marginally higher as both the Sensex and Nifty rose.
Indian shares climbed marginally higher as losses in telecom and drug makers was countered by gains in cement and capital goods companies.
Here are the stocks moving the market this morning:
Divi’s Laboratories: Import Alert On Unit-II
Shares of the drug maker dropped 20 percent to Rs 632 after the U.S. Food and Drug Administration imposed an import alert 66-40 on the products manufactured at one of its Visakhapatnam unit.
The import alert signifies that the company cannot manufacture or market its drugs in the U.S. market from that particular facility. It is usually brought into place when the company is not operating “in conformity with current good manufacturing practices” , according the U.S. FDA website.
The regulator, however, has exempted 10 drugs from import alert.
"Divi's Laboratories, along with third party consultants, is currently working to address the concerns of the U.S. FDA," the company said in a filing.
Aurobindo Pharma: Receives Drug Approval
Shares of Aurobindo Pharma swung between gains and losses after the drugmaker received final ANDA approval for tablets used for loosening mucus and phlegm.
The U.S. Food & Drug Administration allowed Aurobindo Pharma to manufacture Guaifenesin and Dextromethorphan Hydrobromide extended-release tablets, the company said in a exchange filing.
The approved product has an estimated market size of $235 million, according to IRI database.
Bharti Infratel: Nettle Infrastructure Buys Stake
Shares of the tower company rose 1.3 percent to Rs 312 after Nettle Infrastructure Investments acquired 21.63 percent of Infratel's total equity share at the market price.
Nettle Infrastructure Investments is a wholly owned subsidiary of Bharti Airtel, Infratel's promoter company.
Buyback Rush: HCL Tech, Oil India & Engineers India
Shares of HCL Technologies, Engineers India and Oil India reacted after the companies approved buyback of shares.
HCL Technologies approved buyback worth Rs 3,500 crore, Oil India said it would buyback shares worth Rs 1,527 crore while Engineers India proposes buyback worth Rs 658 crore.
IT companies have come under growing pressure from investors to reward shareholders through share buybacks or generous dividends.
In February, TCS announced a buyback worth Rs 16,000 crore for 5.61 crore shares at Rs 2,850 a piece.
- HCL Technologies (+1.2 percent to Rs 874)
- Oil India (-1.5 percent to Rs 329)
- Engineers India (-1.7 percent to Rs 152)
State Bank Of India: To Acquire Bhartiya Mahila Bank
Shares of the largest bank of the nation rose 0.6 percent to Rs 257 after the government approved its acquisition of Bhartiya Mahila Bank. The merger will help better outreach of the banking services to women, according to the finance ministry’s announcement.
State Bank of India’s other associate banks are also in the process to be merged with the public sector bank.
Unichem Labs: Receives Observations From U.S. FDA
Shares in Unichem Laboratories fell 1.8 percent to Rs 286 after company's Goa facility received observations from the U.S. drug regulator.
Unichem Labs said the obersations received from the U.S. Food & Drug Authority are correctable.
The observations do not impact business continuity and the company's supplies to the U.S. market, Unichem said in a statement.
Greenply Industries: Bulk Deal
The company rose 1.1 percent to Rs 278 after SBI Mutual Fund bought 28.4 lakh equity shares of Greenply Industries for Rs 275 per share in a bulk deal. The shares represent 2.3 percent of Greenply's entire equity stake.
Sensex, Nifty: Movers & Shakers
