After opening firm, the Indian Indices have continued to witness buying interest during the morning trading session. All the sectoral indices are trading in green today with stocks from realty and healthcare sectors seeing the highest demand.
The BSE-Sensex is trading up by 277 points. The NSE-Nifty is trading up by 80 points. The BSE Mid Cap index is trading up 1.28% and the BSE Small Cap index is trading up 1.35. The rupee is trading at 61.46 to the US dollar.
Most of the Indian pharma stocks are trading firm, with Dishman pharma and Natco pharma being the leading gainers in the pack. As per a financial daily, three Indian pharma companies viz, Dr Reddys Ltd, Cadila Ltd and Sun pharmaceuticals have been probed by US congress over pricing of generic drugs in the US market. Reportedly, Elijah E Cummings (Ranking Member of the House Committee on Oversight and Government Reform), and Senator Bernard Sanders, have sent letters to 14 generic companies, asking them to share information about the escalating prices they have been charging for generic drugs. Both these members have been investigating on the prices of ten generic drugs. Further, the US Congress has cited price hikes to the tune of 390-8200% across 10 products. This probed is likely triggered by National Community Pharmacists Association (NCPA) 2013 survey of drug prices. In 2014, the NCPA had written to the US Senate seeking investigation into large upswing in acquisition prices of generic medicines. While the things are still on initial stage it would be little early to take a call on the impact of these news on the companies.
Most software stocks are trading firm today. Wipro and Tata Consultancy Services (TCS) are among the stocks leading the gainers. India's second largest software firm Infosys, will declare its 2QFY15 results tomorrow. The day will also mark the end of an era at the firm as the last two co-founders of the company, N.R. Narayana Murthy and Kris Gopalakrishnan will step down from the board. Dr. Vishal Sikka, the first non-founder CEO, who assumed office on 01 August 2014 will now lead the firm with a new generation of leaders. He is expected to outline his strategy for the firm post the declaration of the results tomorrow. It will be interesting to see if Infosys will change its revenue guidance of 7-9% YoY growth in dollar terms for FY15. Infosys is trading up 0.7% today.