BackOpening Bell 24 January | FDA ban on Ranbaxy plant could spook pharma stocks
Asian shares decline on China growth worry; Wall Street indices close sharply lower
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Mumbai: Asian markets declined on Friday morning after a private survey of Chinese manufacturers signalled industrial activity was contracting and authorities raced to prevent the default of a soured $500 million high-yield investment trust, reports Financial Times. China’s Shanghai Composite fell 0.3%, while Hong Kong’s Hang Seng was down 0.8% and Japan’s Nikkei Stock Average declined 1.5%.
Overnight, Wall Street indices closed sharply lower as weak economic data from China prompted investors to sell resource stocks and emerging-markets assets and seek safety in bonds and gold, reports MarketWatch. The Dow Jones Industrial Average dropped 1%, S&P 500 fell 0.9% and Nasdaq Composite declined 0.6%.
Indian Bank shares will be in limelight as it has pulled a rabbit out of its hat by improving its asset quality at a time when PSU banks shares are seeing a sharp rise in bad loans. NPA declined to 3.42% in the December quarter from 3.76% three months earlier, although operating profit fell 15.5%.
Cairn India Ltd shares will be under pressure after it reported its smallest profit in three quarters and missed analyst estimates as staff costs climbed and a stronger rupee led to currency losses. Group net income fell 14% to ₹ 2,880 crore in the December quarter.
Bharti Infratel Ltd shares will continue to be in the limelight after earnings beat estimates with a 62% surge in quarterly net profit, helped by higher investment income and lower interest expenses.
Biocon Ltd shares will be under pressure following a Business Standard report that it has been forced to move various Indian projects to US and Europe after Indian authorities clamped down on clinical trials which will increase the cost of drug development.
Ranbaxy Laboratories Ltd shares will be under pressure after the US Food and Drug Administration (FDA) said on Thursday it has banned more products from Toansa facility in India from entering the US market due to manufacturing violations.
Lastly, Singapore Airlines Ltd and Tata Sons Ltd joint venture is readying for take-off in India around April this year. Read more
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