The Indian markets have started today's session on a positive note. The benchmark indices opened above the breakeven mark and have managed to hold on to their gains since then. Other key Asian markets are trading in the green with Japan (up 0.7%) leading the pack of gainers. The US markets closed higher by 0.4% yesterday.
Currently in India, heavyweights from the BSE-Sensex are trading in the green with telecom and metal stocks attracting investors' interest. The BSE-Sensex is trading higher by around 25 points, while the NSE-Nifty is up by about 7 points. Buying interest is also being witnessed among mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading higher by 0.3% and 0.5% respectively. The rupee is trading at 45.47 to the US dollar.
Pharma stocks have opened the day on a positive note. Gainers here include Dr. Reddy's and Glenmark Pharma. Of late, Indian pharma companies have been receiving US Food and Drug Administration (US FDA) approvals for their generic versions of existing drugs. As per a leading business daily, Dr. Reddy's has received the approval for the generic version of Sanofi-Aventis' allergy drug Allegra. It will be launched in the US in 1QFY11. Glenmark Pharma has also received approval for the generic version of Schwarz Pharma's Uniretic. The Moexipril Hydrochloride tablets used for treating hypertension. The company will begin shipping immediately. Glenmark had recently received approval for the generic version of GSK's Requip tablets. This is a positive development for the Indian pharma industry given the problems with the US FDA several players have had in the recent past.
Software stocks have opened the day on a positive note. Gainers here include Patni Computers and HCL Infosys. As per a leading business daily, leading IT companies are hiring more non-engineers in a bid to lower staff cost. Non-engineering graduates could account for nearly 20% to 25% of the staff at TCS, Wipro and Infosys over the next one to two years, up from the current 10%. It may be noted that technical manpower is not strictly required in several highly automated tasks like software testing and computer infrastructure management. In fact, Wipro already plans to shift nearly 40% of its software services to readymade templates that can cater to additional customers without having to hire additional staff. In our view, this is an attempt by IT majors to move to a non-linear business model where business growth is not tied to growth in the number of employees.