After opening positively, the Indian indices are trading well above the dotted line in the morning session. Apart from FMCG stocks all sectoral indices are trading in the green.
The BSE-Sensex is trading up 190 points and the NSE-Nifty is trading up 57 points. The BSE Mid Cap index is trading up 0.3% and the BSE Small Cap index is trading up 0.6%. The rupee is trading at 61.57 to the US dollar.
Most software stocks are trading higher today. Tata Consultancy Services (TCS) and Infosys are among the stocks leading the gainers. Mumbai based mid-tier IT firm NIIT Technologies has announced its 3QFY14 results. The revenues rose 14.2% to Rs 5.9 bn on a y-o-y basis. This was an increase of 4.3% on a q-o-q basis. The net profit was down by 5.3% from the year ago period. A forex loss of Rs 70 m impacted profitability during the quarter. However the company saw a pick-up in growth from the US, its biggest market which registered a growth of 7.9%. The banking, financial services and insurance (BFSI) vertical also recorded good growth of 8.2% sequentially. However revenues from Europe (37% of revenues) remained flat. NIIT Tech is trading down 1.4% today.
MNC Pharma stocks are currently trading mixed. While Pfizer and Sanofi India are trading firm, Merck is facing selling pressure. As per a leading business daily, GlaxoSmithKline Pharma plans to bring back the margins for wholesalers and retailers from July 2014 after it received a sales red flag. The company plans to restore the cut in orders to boost its sales. The company used to offer margins of 10% and 20% to wholesalers and retailers respectively, but these were lowered to 8% and 16% respectively effective July 2013, after the amendment of Drug Prices Control Order (DPCO) May, 2013. Earlier, a couple of other drug firms, including Torrent Pharma and Cipla have restored margins payable to dealers after the trade protested that margins were not attractive. Since some time, the competition in the Indian domestic market has intensified. In addition to this, the new pricing policy has had an adverse impact on GSK Pharma's revenues. The company's performance has been tepid for past few quarters. GSK Pharma is trading flat today.