After opening firm, the Indian indices are trading well above the dotted line in the morning session. Apart from software and pharma stocks, all sectoral indices are trading in the green. The buying interest is highest auto and banking stocks.
The BSE-Sensex is trading up 90 points and the NSE-Nifty is trading up 30 points. The BSE Mid Cap index is trading up 0.6% and the BSE Small Cap index is trading up 0.5%. The rupee is trading at 60.95 to the US dollar.
Software stocks are trading mixed today. While Tata Consultancy Services (TCS) is leading the gainers, Infosys is leading the losses. India's second largest software firm, Infosys, might need a longer time to get back to an Industry level growth rate, according to Chairman N.R. Narayana Murthy. At an investor conference, he has expressed his displeasure at the problems that the company is facing. As per him, Infosys has not been able to take any advantage of the depreciation of the rupee and that operating margins will remain under pressure in the near term. He expects growth to pick up only towards the end of FY15. He also indicated that the exodus of management talent from the company may not be over by saying that many more resignations could be expected. Infosys is trading down 7% today.
Indian Pharma stocks are trading on a mixed note today. While Sun Pharma is leading the losers, Orchid Chemicals and Panacea Biotech are trading firm today. As per a leading business daily, Sun Pharma has received an import alert from USFDA (United States Food and Drug Administration) for all products manufactured at its Karkhadi plant in Gujarat. It received an import alert and effectively a ban for all its API (active pharmaceutical ingredients) and formulations that it manufactures at its Gujarat plant. It may be noted that the move comes when its subsidiary, Caraco recently received USFDA approval for marketing of the company's Risperidone, a mental disorder drug. Also that the company has recently recalled over 2,500 drug bottles from US markets after it received customer's complaints. The company's financial impact on the ban of Gujarat plant is yet to be known. The ban is the result of the detention without physical examination of drugs which have not met the good manufacturing practices, according to the USFDA norms. Further, Ranbaxy and Wockhardt are already under the USFDA scanner for numerous import alerts.