Fast track
Dr. Reddy's: Strong show
IN the rally during the preceding settlement, a few pharmaceutical stocks recorded a firm trend. Most of these stocks seem to have regained some of their past sheen after the entire sector was marked down by investors.
Impact
Glenmark: Seeking out Amazon terrain
THE strategic alliance entered into by Glenmark Pharmaceuticals to reach out to the Brazilian markets may hold the prospect for improving its revenue and earnings prospects over the medium to long-term. Glenmark has entered into a tie-up with the
Haller group of Brazil. Under the proposed alliance, the Haller group will market both generic as well as branded formulations manufactured by Glenmark in Brazil. This may turn out to be a good avenue to expand export incomes for the company
. The development may be viewed favourably and the stock price may show firm trends at around the current price levels.
Hyderabad Ind: One-time cash flow looms
THE stock of Hyderabad Industries may show firm trends with the company likely to get a sizable one-time cash flow. The board of directors have approved the sale of 60,00,000 shares held by the company in India Gypsum Ltd to a subsidiary of BPB plc
, UK. This development may provide the possibility of a one-time dividend as being one of the possible uses of the cash inflows. The Hyderabad Industries' as well as India Gypsum's (due to enhanced stake by the global parent) stock may be on fir
m ground.
Kesoram Industries: Burden or boon?
THE return of Birla Tyres to the fold of Kesoram Industries may not exactly augur well for its bottomline, though the development may improve topline growth. Birla Tyres had been vested in a joint venture in which other Birla group companie
s also held a stake. Following the expiry of the arrangement, the tyres business is now completely in Kesoram's fold. Notwithstanding the expansion in the market, the intense competition in the industry may place a stress on profitability
. If the company firms up a partner for the business, its competitive position may improve. In this backdrop, the reversion of the tyres business to Kesoram Industries may not improve the valuation of the stock.
Stocks
Nasdaq provides succour; IT scrips gain
THE BSE Sensex closed at 4531.53 points on Monday, up by 78.06 points (1.75 per cent) on the back of upbeat sentiments created by the sharp uptrend in Nasdaq towards the end of last week.
Technical Analysis
Volatile Movement
THE stock market reflected heavy volatile movement on Monday. The remarkable gain in both the indices during the initial hours was completely washed out by the subsequent bear attack. Trading sentiment, however, continued to remain bullish.
