After opening weak, the Indian indices are trading strongly in the green in the morning session amid outperformance among software stocks after the declaration of the 3QFY14 results of Infosys. Apart from IT stocks there is buying interest in engineering and energy stocks.
The BSE-Sensex is trading up 140 points and the NSE-Nifty is trading up 38 points. The BSE Mid Cap index is trading up 0.6% and the BSE Small Cap index is trading up 0.5%. The rupee is trading at 61.94 to the US dollar.
Software stocks are trading higher today. Infosys and Tech Mahindra are among the stocks leading the gainers. According to a leading news service, Tech Mahindra has received approval from the Competition Commission of India (CCI) for the merger of Mahindra Engineering Services (MES) with itself. The CCI nod was required because both firms are part of the Mahindra & Mahindra (M&M) group. While giving its approval the commission has observed that competition in India will not be adversely affected due to the merger. As per the merger agreement, approved by the boards of the two companies on 29 November 2013, the entire business of Mahindra Engineering Services would be amalgamated as a going concern into Tech Mahindra. Currently, the parent company Mahindra & Mahindra (M&M) holds 80.69% stake in MES. Tech Mahindra is trading up 2.6% today.
Aluminum stocks are trading mixed today. While Nalco is trading firm, Hindalco is trading on a weak note. As per a leading business daily, Hindalco's quarterly earnings could be weak after its global peer Alcoa (Aluminum Company of America) one of the world's largest producer of aluminum, reported a massive quarterly loss, falling short of analyst expectations. The Alcoa group's earnings fell to $40 m after excluding impairment charges of $1.7 bn on smelter acquisition and other special items. Alcoa also posted a stagnant outlook on global aluminum demand. It expects global demand for aluminum to grow by 7% during 2014, persistent with its growth in 2013. This does not augur well for Hindalco's US subsidiary Novelis Inc. Further the company on a standalone basis has expanded its aluminum capacity recently and low aluminum prices, sticky costs & delay in commencement of mining from captive blocks are expected to mute its profitability growth in future. Hindalco is trading down 1.7% today.