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Sensex, Nifty strong; Tata Motors, Maruti under pressure

12:00

The News International Team

01:00pm Interview

Poly Medicure, manufacturers of medical devices, won a 5-year long patent battle versus German firm B Braun. The European Patent Office (EPO) revoked two of B Braun’s patents and Himanshu Baid, managing director of Poly Medicure, expects it to be a huge positive for the company.

He says the patent win will help the company gain a firm foothold in Europe. The patents are for intravenous safety catheters. The European safety catheter market is seen at USD 250 million. Baid believes with these patent wins, and given a 2-3 year horizon, the company can gain 6-7 percent market share.

12:45pm Venus Remedies on buyers’ radar

Investors lapped up shares of Venus Remedies on tying up with Mylan for marketing antibiotic drug in three European countries. The stock gained 6 percent.

“This deal with Mylan, the world’s third largest generic drug manufacturer, will enable Venus to market meropenem in Denmark, Sweden and Finland for a period of five years,” said the company in its filing.

Venus will manufacture the drug at its Baddi facility, which recently got a renewed European Union Good Manufacturing Practices certification, while the batch release and logistics will be handled by its Germany facility Venus Pharma GmbH.

12:30pm Airtel in focus

The News International Team

Bharti Airtel has divested its African telecoms tower assets to Eaton Towers. The Indian telecom major has signed a 10-year contract to sell and lease back over 3500 towers to Eaton in six countries.

Under the sell and lease back, Bharti will rent back these towers from Eaton for its own operations. The company will get a lumpsum amount for the outright sell of towers, but every quarter it will have to pay some rental amount, which could eat into its EBITDA.

Overall the news is positive for Bharti Airtel as it will help in reducing its debt. The stock gained around 1.5 percent on the back of the news.

While the management has not made comments indicating the valuations of the deal, as per media speculation, it could be in the range of USD 800 million to USD 1 billion. Eaton Towers was advised by Moelis & Co.

12:15pm Tata Steel in News

Tata Steel has shut down its Noamundi mine in Jharkhand on the orders from the state government, sources told CNBC-TV18. The decision may come as a major blow to the company as the mine contributed over 30 percent of its iron ore requirements.

The Jharkhand government order follows the Centre’s July 18 directive asking states to clamp down on mines operating under second or third deemed renewals.

The decision is likely to hit 12 out of the state’s 17 operational iron ore mines, including those of SAIL, said media reports.

12:00pm The market remained on strong footing in noon trade with the Sensex jumping 177.40 points to 27204.10 and the Nifty rising 52.75 points to 8139.60. More than two shares advanced for every share declining on the BSE.

The stellar run of Indian indices is likely to continue, believes Gautam Shah, associate director and technical analyst, JM Financial. In an interview to CNBC-TV18, he says this bull market is here to stay and we are still in the first leg.  For September, 7850 seems to be the new base for the Nifty, but it could hit 10,700 by December 2015, he adds. He expects Nifty to find minor resistance at 8,250.

Shares of ONGC, TCS, Reliance Industries, HDFC Bank, Sun Pharma, HUL, Bajaj Auto and Hindalco Industries topped the buying list, up 1-2 percent.

Shares of Tata Power, Tata Motors, Mahindra and Mahindra and Maruti Suzuki declined 0.3-0.8 percent.

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