Stocks In Action For September 12, 2012

Dr Reddy’s Laboratories, after market hours, announced the launch of the Metoprolol Succinate ER (Extended Release) tablets. The market for this product is USD 1.13 billion as per IMS Health. On the back of this news we may see some positive movement in the stock.

The shares of the MNC pharmaceutical giant Novartis India would be under pressure as it starts defending its Glivec patent in the Supreme Court of India. Though the sales of the product are not very significant to the company, a defeat would send a very bad signal for this company. It will also be keenly watched by the domestic pharmaceutical companies and MNCs as well. We also expect some volatility in the stock prices of Natco Pharma and Cipla.

According to Business Standard, Tata Motors has begun to set up operations in Indonesia through its wholly-owned subsidiary PT Tata Motors Indonesia. The news article has also suggested that the company is exploring options to produce the iconic low-cost car Tata Nano from Indonesia. On the back of this news we may see a positive movement in the stock prices of Tata Motors.

India has approved 21 foreign direct investment proposals, including that of US drug maker Pfizer. The MNC has proposed to invest in an operating company as per a government statement. We expect some positive movement in the stock today.

According to news sources, Godrej Properties yesterday said that it will invest up to Rs 600 crore in developing a residential complex in Gurgaon over the next five years. This will be the second project in the national capital region. The company will construct about 1,200 flats in 11 towers and is expecting revenue of Rs 1,200 crore from the project. We expect the stock to show some strength in today’s trades.