Modi Announces a Defense Industrial Corridor in UP

Addressing the Uttar Pradesh Investors Summit, Mr. Modi announced the creation of a defense industrial corridor in Bundelkhand.

Given that India imports 80% of its defense requirement, the opportunity is huge for the domestic defense production industry. The announcement would generate investments of around Rs 200 billion and provide impetus to the defense industry.

Biocon Gets Six Observation from USFDA for Malaysia Facility

USFDA completed a pre-approval inspection of their facility in Malaysia and issued Form 483 with six observations. Observations in Form 483 are made when investigators feel that conditions or practices at the facility are such that products may become adulterated or render injuries to health.

Biocon has yet not shared the details of the observations made by USFDA. However, the negative news was not enough to drag the share price of Biocon in the red and it ended yesterday’s session up by 1.6%.

Tata Steel Bid’s for Bhushan Steel and Bhushan Power and Steel Ltd

Tata Steel has made a bid to acquire Bhushan Steel and Bhushan Power and Steel Ltd. The acquisition will be financed through the ongoing right issue as well as fresh debt. This would stretch the balance sheet and could dent the profitability in the near term.

Both these companies had made profits at operating level in FY17. However, these companies had made losses at the net profit level.

Before a decade, the steel major had made one such acquisition i.e Corus Plc and the acquisition is still hurting the company. Hopefully, the company makes a rational decision this time.

Top Stocks in Action Today

The stocks of KSB Pumps, Merck, ITD Cementation India, Sanofi India Ltd are expected to be in the news as they declare their results for the quarter ended December 2018.