After opening in the green, the Indian Indices have slipped below the dotted line in the morning session on the back of broad based selling. Apart from energy stocks, all sectoral indices are trading in the red.
The BSE-Sensex is trading down 136 points. The NSE-Nifty is trading down 37 points. The BSE Mid Cap index is trading down 0.5% and the BSE Small Cap index is trading down 0.4%. The rupee is trading at 63.40 to the US dollar.
Software stocks are trading mixed today. While Tech Mahindra is leading the gainers; Wipro is leading the losers. As per a leading financial daily, India's fifth largest software firm Tech Mahindra has formed a new joint venture (JV). The JV is with leading global telecom technology firm Avion Networks. Tech Mahindra will hold minority stake in the new venture. The joint venture will provide network design and engineering services for the deployment and management of mobile networks and the transformation of these networks to cloud-enabled, virtual and open-systems software driven networks. The financial details of the JV were not disclosed. Tech Mahindra is trading up 0.6% today.
Most telecom stocks are trading higher today. Tata Communications and Tata Teleservices are leading the gainers. As per a leading financial daily, the government has rejected the telecom regulator TRAI's recommendations regarding the contentions method of calculation of Adjusted Gross Revenue (AGR) for the purpose of levying annual licence and spectrum fees. TRAI had recommended that all non-telecom revenue streams (e.g. dividend receipts, property rents etc) be excluded from the calculation of the AGR. This would have brought some relief for telcos who have to pay 8% of AGR as license fees and 6-10% of AGR as Spectrum Usage Charges (SUC) annually. However the Department of Telecom (DoT) has rejected the TRAI's proposal.