After opening in the green, the Indian Indices are trading above the dotted line during the morning session. Broad based buying is being witnessed in mid and small cap stocks. Metal and capital goods stocks leading the gainers. IT and FMCG stocks are trading in the red.
Majority of Indian pharma stocks are trading firm with Torrent pharma and Glenmark pharma being the leading gainers in the pack. As per financial daily, Sun pharmaceuticals has voluntarily recalling 68,194 bottles of its Venlafaxine Hydrochloride Extended-Release tablets, used to treat major depressive disorder, in the US market. Reportedly, the reason for this recall is failure in dissolution specification. The 37.5 mg tablets in 30-count bottles and 90-count bottles were manufactured at its Halol facility. Further, the said recall was initiated on September 26 and has been classified as 'Class-II recall'. As per the USFDA website, class II recall is defined as "a situation in which use of or exposure to a violative product may cause temporary or medically reversible adverse health consequences or where the probability of serious adverse health consequences is remote". This is not expected to have much impact on the company's revenues. However, increase in such recalls can hamper the company's profitability.
Most software stocks are trading lower today. Tech Mahindra and HCL Technologies are leading the losers. As per a leading financial daily, India's fifth largest software firm Tech Mahindra, has launched an internal social networking site. This has been done to enable better communication with its employee base. The company will also sell the platform to its existing clients. Enterprise social networking has been a growth area recently for IT firms and Tech Mahindra is looking to cash in on the trend. The platform will also help to increase efficiency by reduced the number of internal e-mails and enable better communication across departments. India's largest IT firm, TCS had earlier developed an internal social network called 'Knome' and has begun marketing it to its clients. The stock of Tech Mahindra was trading down 0.7% at the time of writing.