After opening weak, the Indian indices are trading below the dotted line in the morning session. The selling pressure is highest in energy and software stocks. The buying interest is focused in engineering and FMCG stocks.
The BSE-Sensex is trading down 52 points and the NSE-Nifty is trading down 16 points. The BSE Mid Cap index is trading down 0.2% and the BSE Small Cap index is trading up 0.2%. The rupee is trading at 61.52 to the US dollar.
Most software stocks are trading lower today. Tata Consultancy Services (TCS) and Wipro are among the stocks leading the losers. According to a leading news daily, India's second largest software firm Infosys, is re-organizing its sales force. Infosys has suffered several senior and mid-level exits over the last year and the company wants to ensure that it does not lose out on its key clients due to this. The sales force will be converted into a pyramid structure where a lot of new employees will be added at the lower end to keep costs in check as the company scales up. The company is also expanding its scales presence in Latin America and Europe. The company's sales and marketing costs had fallen 14.9% QoQ on an absolute basis in the recently declared 3QFY14 results. Infosys is trading down 0.2% today.
Mining stocks are currently trading mixed. Hindustan Zinc (HZL) and Coal India are trading firm, while Gujarat NRE Coke and NMDC are in the red. According to news reports, the government will not give any preference to Vedanta group when it auctions its residual stake in Hindustan Zinc. The government would allow Vedanta to participate in the auction like any other bidder. There will be no Put or Call options provided to Vedanta. Also there will be no first right of refusal. The government has also confirmed that there was no legal impediment to the stake sale and that it would be done by 31st March 2014. The government holds 29.5% stake in HZL and 49% stake in Balco. While the stake sale in HZL will be through the stock exchange route; the mines ministry is currently preparing a cabinet note for the stake sale of Balco through an offer for sale, as it is not a listed entity. Hindustan Zinc is trading up 2% today.