Indian shares snap 2 days of losses, Ranbaxy soars on U.S. sales

Thu Aug 8, 2013 7:53am EDT

Related Topics

* BSE rises 0.67 pct, NSE up 0.84 pct

* Ranbaxy surges 27.6 percent

* Rupee gains, adds to broad market rally

By Himank Sharma

MUMBAI, Aug 8 (Reuters) - Indian shares snapped two days of losses on Thursday, helped by a surge of 27.6 percent in Ranbaxy Laboratories on upbeat quarterly sales in the U.S. at a time when it is facing stringent scrutiny from the drug regulator there, while a rupee recovery also supported the broader market.

Dollar-selling by exporters and expectations of more central bank measures strengthened the beleaguered rupee, adding to the broad market rally.

Indian stocks have fallen in 10 of the last 12 trading sessions, as investors turn wary of slowing growth and the weakening rupee, which tumbled to a record low on Tuesday despite the central bank's cash-draining measures.

"It's been a tough few weeks to be managing Indian and emerging Asian equities, and sentiment towards India is pretty much at rock bottom at the moment," said Jonathan Schiessl, investment manager of Ashburton Global Funds Chindia Equity Fund.

The benchmark BSE index closed 0.67 percent, or 124.46 points, higher at 18,789.34.

The broader NSE index ended 0.84 percent, or 46.55 points, higher at 5,565.65.

The NSE index has lost 7.3 percent since the central bank first announced the liquidity draining measures on July 15.

Shares in Ranbaxy Laboratories, India's top drugmaker by sales, zoomed over 30 percent on Thursday after it clocked better-than-expected sales in its key U.S. market.

The results were a relief after its shares had tumbled 36 percent as of Wednesday's close since the drug maker pleaded guilty to U.S. felony charges related to drug safety and agreed to pay $500 million in settlement

Shares in India's top car maker Maruti Suzuki India Ltd ended 4.07 percent higher after the central bank removed restrictions on shareholding of foreign institutional investors.

Midcap stocks, which have faced the brunt of the recent selloff in Indian equities, also staged a comeback with auto ancillary firm Bharat Forge Ltd jumping 16.93 percent.

The NSE Midcap index, which has lost 15 percent since the beginning of June, ended 1.24 percent higher.

However, drugmaker Lupin added to Wednesday's falls, slipping another 3.25 percent to end at 801.35 rupees, while Sun Pharmaceutical Industries Ltd dropped 3.13 percent after unit Taro Pharmaceutical Industries Ltd reported a lower net profit.

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FACTORS TO WATCH * Dollar hits 7-week low as Aussie shines on China data * Brent slips below $107, shuns robust China oil data * Robust China trade data lifts shares, dollar weak * Foreign institutional investor flows * For closing rates of Indian ADRs

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(Reporting by Himank Sharma; Editing by Prateek Chatterjee)

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