After opening strongly, the Indian indices are trading flat in the morning session. The buying interest is the highest in auto and banking stocks; while the selling pressure is the highest in energy and software stocks.
The BSE Sensex is trading up 20 points and the NSE-Nifty is trading up 6 points. The BSE Mid Cap index is trading up 0.4% and the BSE Small Cap index is trading up 0.3%. The rupee is trading at 61.47 to the US dollar.
Software stocks are trading mixed today. While HCL Technologies and Tech Mahindra are leading the gainers; Infosys and Tata Consultancy Services (TCS) leading the losses. As per a leading business daily, India's third largest software firm Wipro, is undertaking a massive organisational level decentralization exercise. As per the management, the large employee base of the company of about 145,000 does not allow for a centralized structure. Wipro has handed down several key functions like decisions on pricing and client management to project managers. These were being taken by senior vice-presidents earlier. This is been done to make the company leaner and to be able to respond faster to changes in the business environment. The management believes that execution will improve with decentralization of power and this would help the company get back to industry level growth rate of 4-4.5% on a QoQ basis. Wipro is trading flat today.
Most automobile stocks are trading firm with Tata Motors and Maruti leading among the pack of gainers. As per a leading business daily, Tata Motors has unveiled its first variant of a series of new petrol engines in order to cater to the changing consumer preference for fuel. The new engine is expected to power the company's future cars. This comes in the wake of government allowing the fuel retailers to increase the price of diesel, which was quiet cheap as compared to petrol due to government subsidies. However, off late the gap between the two has narrowed down. This is gradually causing the demand to move back towards the petrol cars. The new variant is a 1.2 litre turbojet engine that would be used in the company's compact cars. Tata Motors generates much of its revenues through sales of passenger vehicles and has seen its volume plunge recently. It expects a big opportunity in the petrol segment going forward where it is a smaller player compared to the diesel segment.