The Indian indices remained in the green after hovering near the dotted line during the previous two hours of trade. Currently, heavyweights in the Sensex are trading strong with stocks from auto and consumer durables space leading the gains. However, stocks from the capital goods and IT space are trading weak.
Currently, the BSE-Sensex is trading up by around 33 (0.2%) points, while the NSE-Nifty is up by about 20 points (0.3%). There has been some buying interest amongst the mid and small cap stocks as well with the BSE-Midcap and BSE-Smallcap indices trading higher by 0.5% and 1% respectively. The rupee is trading at 45.64 to the US dollar.
Healthcare stocks are trading mixed with Dr Reddy's and Wockhardt leading the gains while. However, IPCA Labs is trading in the red. In a move that could bring more than half the country's Rs 650 bn medicine market under price control, the health ministry plans to enlarge the scope and size of the National List of Essential Medicines (NLEM). Following a Supreme Court directive to include all NLEM drugs under price control, the central government is working out a new policy incorporating such changes. According to experts, the current plan to include all strengths of shortlisted medicines may result in a price control on about 50% of the medicines sold in the country.
IT stocks are trading mixed with gains on the counters of Aptech Ltd and NIIT Tech while Wipro and TCS are trading weak. A leading business daily has reported that IT major, Infosys has announced signing of an MoU with West Bengal Housing and Infrastructure Development Corporation (WBHIDCO) to open a 50 acre campus in Kolkata. As per the company, this venture will provide nearly 15,000 job opportunities. The total cost for the same is estimated at Rs 750 m.
This is move may be part of the company's strong hiring plans for the next two years. For FY11, the company plans to add nearly 40,000 people on its payroll. For the next year, the figure is 30,000.