Reuters Market Eye - Shares in Ranbaxy Laboratories Ltd (RANB.NS) gain 3 percent, after earlier declining as much as 4.2 percent, as traders call those falls extensive.
The Indian generic drugmaker slumped earlier, a day after pleading guilty to U.S. felony charges related to drug safety and agreed to pay $500 million in civil and criminal fines.
However, analysts note that Ranbaxy in December 2011 set aside $500 million to resolve the potential criminal and civil liabilities related to the investigation by the U.S. government into its manufacturing practices and falsifying data.
Analysts say the fine announced on Monday could end the overhang that had been created over the U.S. investigation, and allow Ranbaxy to focus on its U.S. sales.
"People are buying shares as uncertainty of U.S. FDA (Food and Drug Administration) and DOJ (Department of Justice) is out of equation now, which is a big boost," said Ranjit Kapadia, senior vice president at Centrum Broking.
(Reporting by Abhishek Vishnoi)
Trending On Reuters
On paper, India's households have more reason than ever to save. But convincing them that the central bank can keep inflation low is proving difficult, hindering the country's ambitious growth plans. Full Article