The Indian stock markets have remained flat in the morning session as investors have remained concerned about the Greece outcome. Selling pressure is seen in IT sector and buying interest is seen in Pharmaceutical stocks.
The BSE-Sensex is trading up by 30 points (0.1%) and the NSE-Nifty is trading up by 10 points (0.1%). The BSE Mid Cap index is trading up by 91 points (0.86%), while the BSE Small Cap index is trading up by 74 points (0.67%). The rupee is trading at 63.74 to the US dollar. Gold and Silver are trading at Rs 26,600 per 10 grams & Rs 35,670 per kilogram respectively.
PSU banking stocks are trading on a mixed note with Corporation Bank trading up by 2.3% and Andhra Bank trading down by 2.4%. Banks have made a proposal to lower the provisions which is required to be made on housing loans. The issue was discussed with Reserve Bank of India (RBI) and the government at a performance review meeting which was held earlier this month. This step could help the banks to bring down the interest rates on housing loans and boost the demand in the struggling construction sector. Currently the interest rates on home loan have come down to single digits and stands at around 9.75%. However it is still seen to be expensive by the borrowers. This move if approved by the RBI could help to reduce the interest rates further.
Stocks in India pharma sector are trading on a positive note with Sun Pharma and Glenmark Pharma leading the winners. DrReddy's Laboratories have initiated a voluntary recall of some drugs which are used to treat seizure and hypertension from the US market. It has been recalled as it failed the dissolution tests. This drug has been recalled under the 'class-II' classification. Certain tablets such as Amlodipine Besylate and Atorvastatin Calcium, which are used to treat high blood pressure or chest pain, have also been recalled as these were close to their expiry dates. DrReddy's Laboratories is trading down by 0.2%.