Indian markets are expected to open in the red tracking the SGX Nifty and weak Asian markets.
US markets closed flat as traders took a breather following volatile swings in earlier sessions.
European markets ended on a mixed note after a volatile week of trading. Investors booked profits following the bounce back in recent sessions after the sharp declines last week.
Indian markets opened sharply higher but closed off their day's high on the back of profit booking and weak European cues.
Markets Today
The trend deciding level for the day is 26,450 / 8,018 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,630 - 26,867 / 8,075 - 8,149 levels. However, if NIFTY trades below 26,450 / 8,018 levels for the first half-an-hour of trade then it may correct towards 26,213-26,033/7,945 - 7,888 levels.
Sun Pharma faces class action suit in US over closure of arm
Sun Pharma is facing a class action suit over the closure of the unit's wholly-owned subsidiary, Caraco Pharmaceutical Laboratories in Michigan six years ago. The US Circuit Court of Appeals ruled that Caraco did not comply with norms while closing two of its units in Detroit and Farmington Hills. The case is based on the fact that Caraco did not issue a Federal Worker Adjustment and Retraining Notification Act (WARN) notice to its employees until 11 days after the plants were closed. While the company claimed it had "extraordinary circumstances" as its reason for filing the notice late, former employees sued the company arguing that the plant was facing issues for years and had been informed by the FDA that a seizure could take place if it didn't mend ways with respect to its manufacturing. In case the lawsuit is not settled in favour of Sun Pharma, the company could face some penalties. However, since the subsidiary is non-operational, we do not expect any significant impact on the operational or financial performance of the company. We retain our 'Accumulate' rating on the stock.
Economic and Political News
- India's external debt rises marginally to 23.8% of GDP
- India's foreign exchange reserves rise $921 million to $355.35 billion
- Oil Ministry to publish premium gas formula soon
- India's trade-GDP ratio higher than US, China's
Corporate News
- Brigade Hospitality plans 1,200 hotel rooms in South India
- ONGC, partners to invest $24bn in Mozambique gas field
- GMR plans to export power from its Nepal plants to Bangladesh
Contributed by Angel Broking
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