Cipla, Lupin shares surge in morning trade

Shares of drug firms Cipla and Lupin surged in morning trade on the bourses today after news reports surfaced that Japan's biggest drug-maker, Takeda Pharmaceutical Co, is in talks to buy either of their pharma businesses.

Cipla opened on a bullish note at Rs 283.90 on the Bombay Stock Exchange and then rose by 1.84% to Rs 287.75. On the National Stock Exchange, the stock opened at Rs 283 and then rallied to a high of Rs 287.60, up 1.91% from its last close.

In a similar fashion, shares of Lupin reacted positively to the news, surging by 4.47% to a high of Rs 457.40 on the BSE and rising by 3.37% to Rs 452.80 on the NSE.

Marketmen said the surge in the stocks was largely due to news reports that Takeda has begun talks with both drug-makers.

As per the report, Takeda is very keen on a large buy-out in the country, but there is no certainty that the talks will lead to a conclusive deal.

The surge in both counters was in sharp contrast to the sentiment in the broader market, with the benchmark indices trading in negative terrain.