Stocks In Action For 26th November 2012

The shares of Ranbaxy may be seen under selling pressure after the company voluntarily recalled some batches of its generic version of Lipitor. The generic of Lipitor has been driving its topline and bottomline in the past one year, and after the drug recall, there may be concern on the company’s financials going ahead. We would see some decline in the price of the stock.

The shares of Jet Air will show some gain on the bourses over the news that the civil aviation ministry might give it permission to join the Star Alliance simultaneously with the state-owned Air India. This deal will benefit the company  as there will be a code sharing agreement as well as some cost saving. We expect some positivity in the stock.

We foresee some decline in the share price of Bharti Airtel after allegations were made against some of the employees of Bharti Walmart, the 50:50 JV company between Bharti Airtel and Walmart This allegation comes at a time when there are stormy discussions over FDI in retail.

The shares of Pharma companies like Cipla, Cadila, Sun Pharma, Abbott India, etc. may be under pressure. This is after the Cabinet has okayed the new Pharma pricing policy with the changes, which will take some profits out of their business. The GoM has also said that there would be some changes like arithmetic pricing that will further decline the ceiling price, and this would be seen negatively by the market.