BackOpening Bell | Cipla, Jyothy Labs, Dr Reddy’s in the limelight
Asian markets were trading on a mixed note as investors looked to the US jobs data
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Asian markets trade on a cautious note
Asian markets were trading on a mixed note on Friday morning as investors waited for the US jobs data which will determine when the Federal Reserve will start increasing interest rates. Hong Kong’ Hang Seng was up 0.2% and Japan’s Nikkei Stock Average fell 0.7%.
US markets clock marginal gains
Overnight, Wall Street indices closed mostly in the green after European Central Bank (ECB) chief Mario Draghi, at a policy meeting, said the ECB was open to the prospect of further quantitative easing, should the Eurozone’s economic recovery be threatened by turmoil in financial markets and a slowdown in emerging markets. The Dow Jones Industrial Average and S&P 500 were up 0.1% each, while Nasdaq Composite fell 0.4%.
Cipla to buy Hetero’s US subsidiary
In India, Cipla Ltd shares will be in focus as it is set to buy the American business of Hyderabad-based Hetero Drugs for around $550 million, reports Economic Times. The transaction will help Cipla expand its presence in the US, bringing in revenues of around $150-200 million.
Henkel to buy 26% stake in Jyothy Laboratories
Henkel AG, which had exited India in 2011, is planning to exercise the option to buy 26% stake in local fabric whitener and detergent maker Jyothy Laboratories Ltd, reports Economic Times. The stake purchase by Henkel will be through issue of fresh shares or preferential shares in the range of ₹ 500-600 per share.
Banks create groups to kick-start stalled projects
Top Indian lenders have created six sectoral groups to review and find ways to kick-start 282 stalled and troubled projects. The groups will separately evaluate troubles faced by sectors such as steel, construction, power, electricity distribution, roads and ports, reports Mint.
Dr Reddy’s to invest in new technologies
Dr Reddy’s Laboratories Ltd is evaluating investments in new technologies that offer medical diagnostics and services to help patients. The drug maker’s new venture capital arm is considering 20 business proposals, including a chain of dental clinics and health-diagnostic laboratories, to transform the company into a broader health-focused entity, read more.
Amtek Auto shares continue to slide
Amtek Auto Ltd shares will continue to remain under pressure as a joint lenders forum is scheduled to meet next week to take stock of the company’s cash flow issues. Shares of Amtek Auto Ltd fell more than 30% on Thursday to a 13-year low on continued concerns over liquidity issues, read more.
China’s Baidu and Fosun scouting to invest in Indian startups
Lastly, China’s largest search engine Baidu and one of the country’s biggest private conglomerates Fosun are scouting to invest in Indian startups, reports Economic Times. Investment managers from both companies are in talks with Indian venture capitalists and startups for potential funding deals.
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