GOOD EVENING

Hi friends,

Market lost almost 400 points on sensex today. As expected, it is becoming difficult for the market to hold firmly above sensex 17000 level. It sold off on global cues today.

But note that in this bad market also
HAVELLS, STC INDIA, HIND.COPPER, JUBILIANT FOOD,STRIDES ARCOLAB  are very good medium term buys.

Banks weak. One can go short selling them.

More tomorrow, 

With the best regards,

Jagruti.

UNITED SPIRITS

Look good at CMP 622 approx. may rise up to 740.

STRIDES ARCOLAB AT ATH : GOOD BUY.

The Bangalore-based pharmaceutical major, Strides Arcolab, sold its 94 per cent stake in Ascent Pharmahealth, a subsidiary with operations in Australia and Southeast Asia, to the U.S.-based Watson Pharmaceuticals which also acquired the remaining 6 per cent stake associated with Dennis Bastas, CEO of Ascent, in a move to restructure and focus its business.

The cash offer from Watson values Ascent at an enterprise value of Australian $375 million ($392.5 million). Ascent is a top five generic pharmaceutical company in Australia and is present in countries across Southeast Asia.

Strides develops and manufactures a wide range of IP-led niche pharma products with an emphasis on sterile injectables. It has 13 manufacturing facilities across five countries and has a 350-scientist strong global R&D Centre in Bangalore.

Arun Kumar, Executive Vice-Chairman and Group CEO of Strides Arcolab, said, "The sale of Ascent is a value-enhancing and forward looking initiative for Strides. We have been clear about our intention to focus on our highly attractive steriles segment, which we expect to be our growth engine going forward. The transaction further facilitates the execution of this strategy and unlocks significant value for the Group. Furthermore, the proceeds from the transaction considerably strengthen our balance sheet."

T. S. Rangan, Group CFO, Strides Arcolab, told this correspondent that the steriles business contributed around 40 per cent of the company's revenues and about 70 per cent of the operating earnings. "Although Ascent enjoys operating multiple of 20, the highest in industry, its sale will help us restructure our $500 million debt by allowing us to retire around $250 million and will give us some flexibility. Importantly, the saving on the interest paid to service the debt can compensate for the sale of the Ascent business," he said, adding that all Ascent's 307 employees would be absorbed by Watson.

Watson is a specialty pharma company focussed on urology and women's health. Its President and CEO Paul Bisaro said the acquisition gave Watson a successful commercial structure in Australia and Southeast Asia and a broader product pipeline.

Strides' generic business spans Australasia, Africa and India. After Ascent's sale, Strides' medium-term plan is to grow the injectibles business to global scale through its specialities' division Agila Specialties.

Jagruti Fadia. 

GOOD MORNING

Hi friends,

Market yet can not be said in the bullish trend. This upmove is more likely to be a bear market rally and it is at a strong resistance level now. If declined from here and does not go upward breaking the resistance it can go to 14500 level in time to come.

In this time of uncertainty market players should stay at a safe distance and watch the trend, however, STRIDES, TATA COFFEE, CAIRN etc are good buys as reached or reaching all time highs. IRB also a good pick and seems to have changed the trend. BANKING looks weak after arrival of the news.

Tomorrow being holiday on account of 26th January and expiry of this f&o series , positions will be squared up , market may give a decline.

More later,

Regards,

Jagruti.