Shares of drug firms Cipla and Lupin surged in morning trade on the bourses

RELATED ARTICLES Bharti Airtel shares rally up to 5.6% on Qualcomm deal Tata Power shares down 5% post Q4 results Thomas Cook shares up over 2% on bourses SBI shares extend rally for third day; stock up over 3% Reliance Capital shares zoom over 7% on smart Q4 earnings

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 per cent 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 per cent from its last close.

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

The Bombay Stock Exchange benchmark Sensex fell by nearly 93 points to 16,405.50 in the first few minutes of trade today, while the wide-based National Stock Exchange Nifty index shed 28.55, or 0.55 per cent, to 4,920.35.