New York: 07:14 || London: 10:14 || Mumbai: 15:44 || Singapore: 18:14

Reports India

Indian stock market and companies daily report (August 25, 2014, Monday)

August 25, 2014, Monday, 06:15 GMT | 02:15 EST | 10:45 IST | 13:15 SGT
Contributed by Angel Broking

Indian markets expected to open on negative note tracking SGX Nifty and Asian markets.

US markets were choppy throughout the session and closed on a flat note. The volatility in US Markets was mainly due to Federal Reserve Chair Janet Yellen speech, which did not provide any meaningful hints about the outlook for interest rates and largely focused on the difficulty in judging the remaining degree of slack in the labor market.

European markets closed on negative note, after U.K.Rs.s house price sentiment index rose at the slowest pace in five months in August. Back home, IndiaRs.s benchmark indexes Sensex and Nifty closed at fresh record highs as easing geopolitical concerns and a string of upbeat U.S. economic reports spurred optimism.

Markets Today

The trend deciding level for the day is 26,437 / 7,914 levels. If NIFTY trades above this level during the first half-an-hour of trade then we may witness a further rally up to 26,491 - 26,562 / 7,928 - 7,943 levels. However, if NIFTY trades below 26,437 / 7,914 levels for the first half-an-hour of trade then it may correct 26,366 - 26,312 / 7,899 - 7,885 levels.

Ranbaxy overcharged by Texas for drugs under its public-funded Medicaid programme

State of Texas has imposed another hefty fine in the United States of close to Rs.240cr. The company has been in negotiation with the US state over settlement of this issue for quite some time now. While final details are awaited, it is expected that the fine could be broadly split into two components. One of this, about 38%, could relate to some additional dues that the state may have claimed on account of RanbaxyRs.s previous slippages from the US-prescribed manufacturing practices, which led to its coughing up US$500mn as fine in the US in May last year. However, a second component of about 61% of the settlement sum could be flowing from an assessment by the US state, which shows that the drug maker has overcharged the state of Texas on one or more drugs under its public-funded Medicaid programme. In its first quarter results, Ranbaxy Labs one-time provision of Rs.237cr, which was slated to kept aside for specific ongoing settlement discussions with government authorities in the US. While the details are not available, the development will not have significant implications on the companyRs.s financials, as the company has a comfortable net debt position. Hence we maintain our neutral stance on the stock.

Economic and Political News

- US to help India to persuade WTO on food security concerns

- Govt to spend about Rs.69,500 cr on IT, Telecom infra by 2019

- Iron ore royalty rise may not hurt steelmakersRs. margins: Fitch

Corporate News

- Ashok Leyland may raise prices in October, January, says MD

- L&T wins orders worth Rs.1,283cr in July, August

- Religare to part-buy PrimeRs.s PMS Business