Nomura raises Ranbaxy to 'buy' on Sun takeover

Reuters Market Eye - Ranbaxy Laboratories gains 0.2 percent to 481 rupees after Nomura upgrades the stock to "buy" from "reduce" and raises its target price to 543 rupees from 321 rupees on the back of its takeover by Sun Pharmaceutical Industries .

Although Nomura says Ranbaxy shares look expensive on valuation, it notes the stock should now move in tandem with Sun Pharma, hence the steep increase in its target price.

Ranbaxy shares are trading well above the Sun offer that valued the takeover target at 457 rupees apiece.

Sun is trading 0.1 percent higher at 637.30 rupees.

(Reporting by Abhishek Vishnoi)