After opening in the red, the Indian Indices have continued to slide and have remained below the dotted line during the morning trading session. Majority of sectoral indices are witnessing selling pressures, with metal and healthcare stocks being the top losers. However, stocks from consumer durables, auto and power sectors are in demand.
The BSE-Sensex is trading down 99 points. The NSE-Nifty is trading down 33 points. However, Small cap and Mid-cap stocks are in demand today. The BSE Mid Cap index is trading up 0.39% and the BSE Small Cap index is trading up 0.47%. The rupee is trading at 61.64 to the US dollar.
Indian pharma stocks are trading mixed. Dishman pharma and Torrent pharma are the leading gainers in the pack, while Ranbaxy Laboratories and Elder pharma are among the leading losers. As per the financial daily, Sun Pharmaceuticals and US based Merck have called off their three year old joint venture. Under the deal, Sun was selling Merck's anti-diabetic drug sitagliptin in India. Reportedly, the reason for the decision is still not clearly known. The said JV was aimed at bringing innovative drugs to emerging markets, including India. In April 2011, Sun Pharma and Merck had entered into deal for manufacturing and marketing of "innovative and differentiated drugs" for the markets in Asia Pacific, Latin America, Eastern Europe, the Middle East and Africa. Sun pharma being a leading pharma company was given rights to sell the said drugs. Sun pharma was trading down by 1.35% at the time of writing.
Most software stocks are trading lower today. Tech Mahindra and HCL Technologies are leading the losers. As per a leading financial daily, India's third largest software firm Wipro, has won a major outsourcing contract. The IT firm was won a multi-million dollar software contract from the American apparel maker Levi Strauss. The deal size is estimated to be about US$ 143 m. However, the deal has a variable component as well which could result in a higher payout for Wipro. The contract is for five years, commencing in the first quarter of 2015, with the possibility of an extension of 2 years. Wipro will provide IT services related to IT infrastructure management, finance, HR, customer service and customer relations. The stock was trading down 0.3% at the time of writing.