Stocks In Action For September 14, 2012

Drug maker Glenmark Pharmaceuticals yesterday said that it has entered the second phase of clinical trials for its new drug molecule aimed at treating ulcerative colitis. Its subsidiary, Glenmark Pharmaceuticals SA, will conduct trials at multiple clinical sites in North America and Europe to investigate the efficacy and safety of the new molecule. On the back of this, JP Morgan has also raised the target price on the company. We expect positive movement in the stock in today’s trades.

Strides Arcolab, after market hours yesterday, announced that it has received USFDA approval for its Polish sterlite injectables’ manufacturing facility. With this the company has become one of the worldwide entities with the largest sterile injectable capacity. The stock may show some gains today.

According to Business Standard, Spice Jet is in talks with a Gulf airline for potential investment in the Indian budget carrier. Currently the aviation stocks are seeing positive investor sentiment over the proposed potential nod for FDI in aviation. We expect Spice Jet to lead the positive momentum today as well.

Drug giant Ranbaxy Pharmaceuticals has said that it will set up another plant in Malaysia with an investment of USD 40 million (around Rs 220 crore). As per a company statement, its subsidiary has received approval for setting up a greenfield manufacturing facility in Malaysia. This facility will manufacture various dosage forms, primarily in therapeutic segments like cardiovascular, anti-diabetic, anti-infective and gastrointestinal. On this news one can see its shares showing gains today.

We also expect high volatility in the metal and power stocks as the coal ministry has cancelled four coal blocks. Such an action, we believe, will decline business sentiment in the already subdued power and metal sectors. We expect volatility in both the sectors today.

Pharmaceutical major Lupin Ltd has received the final approval for its Escitalopram tablets (Escitalopram Oxalate) from the US FDA to market a generic version called Lexapro. According to a BSE filing, the market for this drug is about USD 2.7 billion. We expect the stock to show gains today.