Ranbaxy, Tata Steel stocks survive negative reports

MUMBAI: The share price of drug maker Ranbaxy Laboratories and India’s third largest steel maker Tata Steel Tuesday brushed aside the negative news to recover from their day’s low levels.

On the BSE, Ranbaxy shares rose 3.63% or Rs 15.95 to close at Rs 455, while Tata Steel was down marginally by 0.47% or Rs 1.45 at Rs 303. But, on intra day trades, the Ranbaxy touched a low of Rs 421 or fell 4.21% and Tata Steel fell as much as 3% to Rs 296.70.

“The negative news was factored in by market in both Ranbaxy and Tata Steel. The fact that it is out has ended the overhang in both the counters and resulted in short covering today,” said Sonam Udasi, Head of Research, IDBI Capital.

On Monday, Ranbaxy pleaded guilty to felony charges related to drug safety in the US and has agreed to pay $500 million in civil and criminal fines under the settlement agreement with the Department of Justice. Government officials in the US said it was their largest ever settlement with a generic drug maker over drug safety.

Ranbaxy had reached a related settlement agreement with the US Food and Drug Administration in 2011. The USFDA had banned Ranbaxy from selling 30 drugs after it found manufacturing deficiencies at facilities in India.