After opening in the red, the Indian Indices have climbed above the dotted line in the morning session and are trading flat. Engineering stocks are leading the gainers while IT stocks are witnessing selling pressure.
The BSE-Sensex is trading up 26 points. The NSE-Nifty is trading up 10 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 61.91 to the US dollar.
Software stocks are trading mixed today. While HCL Technologies is leading the gainers; Tata Consultancy Services (TCS) is leading the losers. India's second largest IT firm Infosys, has stated that it is advanced talks with NASDAQ listed DreamWorks Animation to invest in one of its spin-off start-up ventures Clique Intelligence. This company develops software tools for large collaborative software projects. The details will be disclosed as and when the deal is signed. This will be the first start-up acquisition for Infosys under CEO Vishal Sikka. The company has set up a US$ 500 m innovation fund for the purpose of investing in startups and new digital technologies. Infosys has committed half the amount for Indian startups. Infosys is trading down 0.3% today.
Telecom stocks are trading mixed today. While Idea Cellular is leading the gainers; Tata Teleservices is leading the losers. As per news reports, the telecom regulator TRAI has rejected the Department of Telecom's (DoT) proposal to set the base price of 3G spectrum higher by 43% compared to the 2010 auction price. The government is set to auction a limited amount of 3G spectrum in the 2,100 MHz band in the 22 Feb auctions. While the regulator has been trying to convince the government to keep the base price as low as possible to ensure fair competition, the government is more concerned about revenue maximization and is unlikely to lower the reserve price at all. It is in fact keen to hike it by 43%. The Telecom Commission will now take the final call shortly.