Sensex lifeline: high beeps and pratfalls

Sensex lifeline: high beeps and pratfalls

Cipla (2.89% down)

Shares of Cipla Ltd ended down 2.89% after the drug pricing regulator, the National Pharmaceutical Pricing Authority (NPPA), said the company will pay over Rs1,500 crore for overpricing drugs. Cipla told CNBC-TV18 that the claims are not tenable. The firm has said it will seek legal recourse.

Reliance Power (4.80% up)

Shares of Reliance Power Ltd surged 4.80% after the company began producing 20MW at its 1,200MW power plant in Rosa, 350km east of New Delhi. The first unit of 300MW will be fully operational by the end January and the entire plant will generate electricity by March 2012.

Kalindee Rail (19.29% up)

Shares of Kalindee Rail Nirman (Engineers) Ltd rose 19.29% on news of Japan’s Bank for International Cooperation signing an agreement for a $75 million loan facility with the India Infrastructure Finance Co. Ltd. The loan will be used to part-finance the Delhi-Mumbai Industrial rail corridor project.

Max India (1.31% up)

Shares of Max India Ltd gained 1.31% after the firm’s board approved investments by Goldman Sachs. Goldman Sachs will pick up a 9.4% stake in the company for Rs540 crore by subscribing to fully convertible debentures which will be converted into shares within 15 months.

Sesa Goa (0.54% up)

Shares of Sesa Goa Ltd gained 0.54% on reports that the government has doubled export duty on iron ore lumps to 10% (from 5%). Analysts say that it will not have a big impact as iron ore prices have already risen from around $60 (Rs2,802)a tonne in April to around $100 tonne till date.

Escorts (4.24% up)

Shares of Escorts Ltd ended up 4.24% after its fiscal 2009 numbers saw an eightfold jump in profit-after-tax year-on-year. Earnings before interest, taxes, depreciation and amortization for the financial year grew by 35% to Rs205.92 crore from Rs152.44 crore registered in the previous fiscal.

Gammon 95.96% down)

Shares of Gammon India Ltd ended down 5.96% on concerns over the collapse of the Kota bridge in Rajasthan. The company was jointly building the Kota bridge with South Korea’s Hyundai Engineering. The bridge collapsed on Saturday, killing at least 45 people, according to reports.

Gallantt Metal (20.12% up)

Gallantt Metal’s shares rose 20.12% after its subsidiary Gallantt Ispat said it plans to raise Rs40.5 crore through an initial public offering at Rs50 per share. Post-issue, the promoters’ shareholding will be reduced to 69.93% from 92.77%. Gallantt Metal owns a 46.35% stake in the company.