Indian equity markets continued to trade in the positive during the previous two hours of trade after opening firm earlier today. Sectoral indices traded mixed with oil and gas and capital goods leading the gains while auto and IT stocks were the top losers.
The Sensex today is trading higher by 109 points and NSE-Nifty today is trading up by 30 points. BSE Mid Cap and BSE Small Cap indices are trading higher by 0.3% and 0.2% respectively. The rupee is trading at 53.94 to the US dollar.
IT stocks are trading weak led by Wipro and HCL Infosys. Tata Consultancy Services (TCS) has entered into a long term agreement with Nokia to help transform its IT business. The deal is estimated to be worth US$ 100 m. TCS was selected as a global IT partner for Nokia's consolidation of global internal applications suite with a single provider. TCS would help Nokia in developing and supporting applications for enterprise resource planning (ERP), customer relationship management, product lifecycle management, supply chain management (SCM), enterprise information management and corporate functions. Meanwhile, Nokia has stated that it plans to transfer some activities and around 820 employees to TCS and HCL Technologies.
Oil & Gas stocks are trading strong with Indian Oil Corporation (IOC) and Bharat Petroleum Corporation Limited (BPCL) leading the gains. According to a leading daily, the Indian government has taken first step towards the deregulation of diesel companies by allowing oil companies to raise diesel prices in small amounts. This is in line with the suggestions of the Kelkar committee which advised total decontrol of diesel pricing. An announcement to this effect was made yesterday by Oil and Natural Gas minister Mr Veerappa Moily. The companies will be allowed to raise diesel prices from time to time in small quantum till the time they are able to recover their losses amounting to Rs 9.6 per litre. Post the announcement, oil companies raised diesel price by 45 paise and intend to raise the prices of diesel by 50 paise per litre every month.