After opening weak, the Indian Indices have continued to trade below the dotted line since selling activity intensified during the morning trading session. Barring stocks from IT and consumer durables sectors all the sectoral indices were trading in red. Stocks from metal and FMCG goods were the leading losers in the pack.
The BSE-Sensex is trading down by 252 points. The NSE-Nifty is trading down by 75 points. The BSE Mid Cap index is trading down 0.69% and the BSE Small Cap index is trading down by 0.65. The rupee is trading at 61.03 to the US dollar.
Most of the Indian pharma stocks are trading weak, with Orchid and Natco pharma being the leading losers in the pack. As per a financial daily, the supreme court has agreed to hear the petition challenging the recent government's to role back the order of price caps on 108 drugs, crucial for treatment of TB, cancer and diabetes. The National Pharmaceutical Pricing Authority (NPPA) recently had withdrawn a May, 2013 circular that capped the prices of these non-essential drugs, in line with a directive from the ministry of chemicals and fertilisers. Reportedly, in a public interest litigation, advocate Manohar Lal Sharma contended this withdrawal of circular. As he believes this step was against public interest. Since higher prices of various drugs makes them unaffordable for a common man. Mr Manoharlal has also demanded a CBI inquiry into what he claimed was the sudden turnaround in NPPA's action. An unfavorable verdict is likely to impact the prices of the drugs for the companies who have higher exposure of drugs in these therapies.
Most software stocks are trading weak today with Moser Baer Indian and CMC Ltd being the leading losers in the pack. India's second largest software firm Infosys, have declared results for 2QFY15. The company has reported a 4.5% quarter-on-quarter (QoQ) growth in its sales and a 7.3% QoQ growth in its net profits. In rupee terms the consolidated sales increased by 4.5% QoQ during 2QFY15. In US dollar terms the revenues were up 3.2% QoQ. Operating profits were up by 8.5% QoQ. This was due to good control over direct costs (as a percentage of sales) in the quarter. Thus, the operating margin which came in at 26.1% this quarter was higher than the same reported in the last quarter of 25.1%. The net profit for the company came in at Rs 30.96 bn an increase of 7.3% QoQ. he company has declared a 1:1 bonus issue as well as an interim dividend of Rs 30 per share. Infosys was trading up by 5.8% at the time of writing.