Ranbaxy Laboratories gains 3.6 percent on value buying

Reuters
A Ranbaxy office building is pictured in the northern Indian city of Mohali
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A Ranbaxy office building is pictured in Mohali May 14, 2013. REUTERS/Ajay Verma/Files

Reuters Market Eye - Ranbaxy Laboratories(NSI:RANBAXY.NS - News) closed 3.6 percent higher after rising as much as 6.1 percent on value buying after a ruling from the U.S. health regulator on its Mohali factory triggered the worst single-day fall in its stock on Monday, wiping off a third of its market value.

A third Ranbaxy Laboratories Ltd (NSI:RANBAXY.NS - News) plant in India has been hit by a U.S. import ban over quality concerns, dealing a blow to the company's turnaround plans and threatening to hurt new launches and sales of medicines to its largest market.

Jefferies downgrades Ranbaxy to "hold" from "buy", saying the risk-reward has shifted unfavourably post the U.S. Food and Drug Administration alert while Kotak has cut the shares to "reduce" from "buy".

Brokerages including HSBC, Edelweiss and Anand Rathi Research downgraded Ranbaxy on Monday, saying regulatory issues would continue to hurt the company's turnaround plans.

(Reporting by Abhishek Vishnoi)

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