The BSE-Sensex is trading up 106 points. The NSE-Nifty is trading up 32 points. The BSE Mid Cap index is trading up 1% and the BSE Small Cap index is trading up 1.12%. The rupee is trading at 60.66 to the US dollar.
In some good news on the policy front, the government seems to moving forward to implement the long delayed Goods and Services Tax (GST). The process of consultation between the centre and the states has moved forward as per a leading financial daily. An agreement has been reached regarding the detailed structure of the taxes that the GST will replace. This was a key stumbling block which has now been resolved. The remaining differences now pertain to the compensation to the states that has yet to be worked out and some legal issues. These are also expected to be resolved over the next few months. The GST will replace service tax, excise duty, central sales tax, state VAT and several local taxes. It will go a long way to remove barriers to movement of goods and services across states and will turn the country into a single market.
Majority of Indian pharma stocks are trading in green with Elder pharma and Strides Acrolab being the leading gainers in the pack. As per a leading financial daily, Dr Reddy's one of the leading generic player in the US market has come under department of justice (DOJ) of USA. As per the DOJ, the company seems to have violated some provisions pertaining to packaging of drugs. Reportedly, the violations pertain to some provisions of consumer product safety act (CPSA) involving child resistant packaging regulations. However, the company has denied these allegations. In May 2012, Consumer product safety commission (CPSC) had requested some information regarding special packaging on some drugs and the company had provided with the required information. Recently in April 2014, CPSC has sent a letter to the company saying that the company has violated the CPSA and the Poison Prevention Packaging Act (PPPA) and thus seeks civil penalties from the company. Dr Reddy's is trading down by 1%.