Software stocks are trading on a mixed note with Moser Baer and Mphasis being the biggest gainers whereas HCL Infosys and Wipro are the major losers. As per a leading financial daily, Wipro is extending from being a mere application developer to a one-stop shop for customers in the US. The outsourcing industry in India has traditionally focused on application development and maintenance that garners more than 60% of the sector revenues. Wipro's system integrator model has been successful in India and the company wants to extend the model globally. As per the company, it wants to sell software, hardware as well as implement and roll it out. The systems integrator unit of Wipro has implemented core banking software for 10 Indian banks and built back offices for two telecom companies. Revenues from this unit contribute 9% to the company's overall revenues. Wipro's stock is trading down 1.8%.
Food stocks are trading mixed with ITC and VST Inds being the biggest gainers whereas Godfrey Phillips and Ruchi Soya are the major losers. As per a leading financial daily, Maharashtra Food and Drug Administration (FDA) has sent a notice to Glaxo SmithKline Consumer Healthcare (GSKCH) for overcharging on the fever & pain medicine Crocin and stopped its supplies in retail chemist shops. The price of paracetamol is fixed at Rs 9.40 for a 10-tablet strip as per the Drug Price Control Order (2013). However as per GSKCH, its drug Crocin Advance is its local invention and therefore should be exempted from price control. Crocin Advance is currently being sold at Rs 20 a strip. Additionally, FDA has also written to the National Pharmaceutical Pricing Authority (NPPA) for greater clarity on the issue. If NPPA goes in agreement with Maharashtra FDA, then other States may follow suit and stop Crocin Advance from being sold at the current price. GSKCH earns margins on distribution of Eno, Crocin and Sensodyne brands. This auxilllary income is less than 5% of the company's overall revenues. GSKCH's stock is currently trading up by 1.3%.