Indian stock markets shed their initial gains over the last two hours of trade and are trading flat. Sectoral indices are trading mixed with metal and pharma stocks leading the gains while auto and capital goods are the leading losers.
Oil & Gas stocks is trading on a positive note with Cairn India and ONGC being the leading gainers. According to a leading financial daily, the government has decided to exempt upstream oil companies ONGC and Oil India from paying fuel subsidy as long as the crude prices remain below US$ 60 a barrel and proposed to exclude GAIL India from paying any more subsidy this fiscal. The decision comes following a sharp decline in oil prices. State-run oil marketing companies suffer under recovery for selling fuels such as kerosene and LPG at a subsidized cost. There is also an outstanding subsidy of Rs 109 bn on diesel.
Healthcare stocks are all trading in the green barring a few stocks like Aurobindo Pharma and Divis Lab. Ranbaxy Lab and Sun Pharma are the leading gainers. According to a leading financial daily, seven Indian generic pharmaceutical companies have been recommended for suspension by the European Medicines Agency (EMA). The decision follows after questions were raised over the integrity of clinical research data generated at a site operated by Hyderabad-based GVK Biosciences. While the list of suspended medicines comprise the names of several major global generic drug makers, including Teva and Mylan, at least a dozen drugs marketed by Indian companies and their subsidiaries have also been figured in this list.