Nifty remains below 10K amid consolidation ahead of Q2 earnings

Future Retail today said it has executed share purchase agreement (SPA) with Shoppers Stop for its Rs 655-crore acquisition of Hypercity Retail in stock-and-cash deal.

Last week, Kishore Biyani-led Future Retail Ltd (FRL) had announced that it would acquire Hypercity that operates 19 large format premium stores in some key cities from the K Raheja group firm Shoppers Stop.

Shopper Stop owns 51.09 percent stake in HRIL and rest is owned by the promoter group and others.

For the upcoming earnings season, Credit Suisse expects Q2 for pharmaceuticals to have another weak quarter.

It expects US sales to be impacted by the full quarter impact of Mckesson Walmart bidding, while sequential improvement will be driven by recovery in India post GST.

The global research observed that the companies which bucked the trend are Cadila and Alkem Labs. Additionally, Dr Reddy’s Labs reported a weak Q1, but recovery in Q2 is not significant, it said.

On Sun Pharma, it expects earnings to be hit by notional forex loss at Taro, while Lupin could report weak September quarter.

Going forward, a recovery in India sales should help Cipla report sequential improvement, the brokerage house said in its report.

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Posted in: Indian Market Tips