After opening positive, the Indian Indices have continued to trade above the dotted line. Majority of sectoral indices are trading firm, with power and metal stocks leading among the gainers. However, oil and gas stocks are witnessing maximum selling pressures.
The BSE-Sensex is trading up 58 points. The NSE-Nifty is trading up 25 points. The BSE Mid Cap index is trading up 0.87% and the BSE Small Cap index is trading up 0.66%. The rupee is trading at 61.28 to the US dollar.
Majority of the Indian pharma stocks are trading firm with Indoco remedies and Aurobindo pharma being the leading gainers. As per the financial daily, the US congress is pressing for sooner action on Sun pharmaceuticals Ltd and Dr Reddy's laboratories for abnormal price increase in US. Earlier during this month, a legislature committee had written letters to the 14 companies, seeking details of the price hike taken on several drugs sold in US. Reportedly, the increase by the companies were taken as much as 390-8,200% across 10 products. More recently, the US Congress (the legislature) has written to US health secretary, seeking for 'immediate' and 'aggressive' action over the issue. This is one of the very rare instances where the US regulator have become quite stringent on the price hike taken by the companies.
Software stocks are trading mixed today. While Wipro is leading the gainers; Tech Mahindra being the leading the losers. As per a leading financially daily, India's largest software firm Tata Consultancy Services (TCS) has stated that the management is confident of maintaining operating margins at 26-28% levels. This clarification has come after the company's 2QFY15 results did not meet the expectations of analysts. The company has also stated that the margin band does not factor in currency volatility. Also, the company will rework the margin strategy once the Indian currency has stabilised. TCS however will continue to re-invest cash back into the business to maintain its industry leading growth rate. In the short term, the growth prospects will remain steady and the company is on course to beat NASSCOM's FY15 growth target of 13-15%. TCS was trading flat at the time of writing.