The Hindu Business Line : Orchid Chem sees high level of day trading

Mumbai, April 9 Orchid Chemicals and Pharmaceuticals on Wednesday saw huge volumes on NSE and BSE as day traders took advantage of the buzz around Ranbaxy’s interest in the Chennai-based drug-maker.

That day traders were active on the Orchid counter on Wednesday was evident from several bulk deals consisting of buy and sell orders by the same entities on the BSE.

On the NSE too, out of 4.56 crore plus shares of Orchid traded, the deliverable quantity was only 14.08 lakh plus shares or 3 per cent. The stock topped the turnover chart on the NSE with more than 4.56 crore shares worth Rs 1,048 lakhs traded. On BSE too, 2.53 lakh shares worth Rs 581.72 crore were traded.

Ranbaxy denial

The combined turnover on the two leading bourses in Orchid shares was Rs 1,629.84 crore on Wednesday, although the stock itself dropped sharply intra-day following Ranbaxy’s denial of any ‘hostile’ takeover plans.

It opened at Rs 240.60 on BSE, touching a high of Rs 248.70 to later drop to its intra-day low of Rs 212 as the denial of a ‘hostile takeover’ by Ranbaxy filtered in.

Later in the day the stock rose to close the day at Rs. 232.60, which was still 3 per cent lower than Tuesday’s close.

The scrip had gained 33 per cent in the previous two sessions alone, on the likelihood of it being a candidate for a takeover.

The Orchid stock had touched a low of Rs 111.55 on March 24 on reports of its exposure to derivatives related to foreign exchange, but then it regained some of its losses over the last week. The stock had fallen sharply by 39 per cent on March 17 after some of the large investors exited the stock on the news of the company having exposure to foreign exchange related derivative instruments.

Point of interest

Ranbaxy Group company Solrex Pharmaceuticals has been buying shares of Orchid from the open market and had raised their stake in the company to over 11 per cent on Tuesday so far.

Orchid produces antibiotic cephalosporin injectibles which could be of direct interest to Ranbaxy.

The stock of Ranbaxy Laboratories was volatile on Wednesday but closed flat at Rs 470.40, down by just 0.07 per cent from the previous close.

More Stories on : Stocks | Pharmaceuticals | Ranbaxy Laboratories Ltd

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