Sensex Ends Lower; IT Stocks Slump 2.4% On Worries Over H-1B Visas

Large Acquisitions Yet Low on Leverage

Tanushree Banerjee, Co-head of Research is of the view that for the upcoming period the pace of acquisitions will slow down. Further, will the synergies of acquired companies (Subscription Required) help in better cash flows? Here's what she has to say:

  • "Tech Mahindra is now rightly considered acquisitions specialist! The company has made a slew of acquisitions since Satyam. And has been fairly successful at the integration. With more than US$4 billion in revenues, over 800 clients and a presence in more than 90 countries, Tech Mahindra has become a force to reckon with."

India is an information technology powerhouse. Indian IT companies have been increasingly focusing on the Middle Eastern market as they look to offset slower growth in key regions like the US. In an extremely challenging global economy, western corporations are now expecting Indian IT firms to deliver a more compelling value proposition in terms of growth prospects. Going forward, whether the Indian IT firms are up to the task will be the key thing to watch out for.

Tech Mahindra's share price ended the day down by 3.8%.

Moving on to the news from stocks in pharma sectorWockhardt's share price surged by 5.2% after it was reported that Wockhardt's Gujarat unit in Ankleshwar has cleared an inspection of German drug regulator. Now the German clearance allows the company to continue its supply of APIs across the European Union.

The move comes the two days after receiving a warning letter from US Food and Drug Administration (USFDA) for its active pharmaceutical ingredient (APIs) for the same plant. The warning was issued to the company for violating current good manufacturing practice norms, including its failure to ensure proper clothing for workers at its Ankleshwar plant.

The certificate is issued for the unit which complies with the principles and guidelines of Current Good Manufacturing Practice regulations. The certificate issued in this regard is valid for 3 years.

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