After opening weak, the Indian indices are trading above the dotted line in the morning session. The buying interest is the highest in auto and software stocks.
The BSE Sensex is trading up 115 points and the NSE-Nifty is trading up 34 points. The BSE Mid Cap index is trading up 0.5% and the BSE Small Cap index is trading up 0.6%. The rupee is trading at 61.61 to the US dollar.
Most software stocks are trading strongly in the green today with Wipro and Tata Consultancy Services (TCS) leading the gainers. As per a leading business daily, India's second largest software firm Infosys, plans to cut down on non-performing units that are not generating revenues. The company is currently in the middle of an organisational change which is being reviewed constantly by founder and Chairman N.R. Narayana Murthy. The units that are currently not generating revenue would be down-sized and employees would be transferred to other departments. Among the departments affected, are the education and research unit, the main R&D unit Infosys Labs, and the Intellectual Property (IP) cell. This cost optimization exercise has now been extended to all cost centers of the company. This is as per the company's strategy to become a more agile, differentiated and client centric firm. Infosys is trading up 0.3% today.
Most telecom stocks are trading higher today. Idea Cellular and Reliance Communications are among the stocks leading the gainers. According to a leading financial daily, a bidding war can be expected at the upcoming 2G auctions. The auctions which will be held early next month, will see Reliance-Jio putting up a tough challenge for incumbent players Vodafone and Bharti Airtel. As per the bank guarantees put up by the respective firms, all three may bid for the 900 MHz spectrum in New Delhi and Mumbai. Reliance Communications and Tata Teleservices have put up significantly lower amounts as bank guarantees and this indicates that they might bid for only small chunks of spectrum to fill up gaps in their network. The government plans to sell spectrum in the 900 MHz and 1800 MHz bands. Bharti and Vodafone want spectrum in the 900 MHz band to renew their permits in cities like Delhi and Mumbai while Reliance-Jio wants this spectrum so that it can offer all mobile services like 2G, 3G and 4G.