Divi’s Labs had hit a new high yesterday at Rs.5313.80 though it ended at Rs.5220.50. Today, it opened higher at Rs.5260 and profit booking pushed it down to Rs.5147 and it remains in the red.
The stock is reflecting the overall mood of the market. The high of yesterday after Merck & Co, reported that its experimental antiviral pill reported positive clinical trial results for the drug. Merck said that molnupiravir could halve the chances of dying or being hospitalised for those most at risk of contracting severe Covid.
This is music to the ears of Divi’s as it an authorised active pharmaceutical ingredient (API) maker for molnupiravir and is allowed to supply the API to Merck's partners in India.