After opening on a weak note, the Indian indices have fallen well below the dotted line in the morning session. All sectoral indices are trading in the red. The selling pressure is the highest in auto and banking stocks.
The BSE-Sensex is trading down 208 points and the NSE-Nifty is trading down 68 points. The BSE Mid Cap index is trading down 1% and the BSE Small Cap index is trading down 1.1%. The rupee is trading at 62.24 to the US dollar.
Software stocks are trading mixed today. While Tata Consultancy Services (TCS) and Wipro are leading the gainers; Infosys and Tech Mahindra are among the stocks leading the losses. As per a leading business daily, India's fifth largest IT firm Tech Mahindra is considering an acquisition to boost its presence in the banking, financial services and insurance (BFSI) vertical. The company is considering buying out a niche IT service player in the Asia-Pacific region. BFSI is by far the largest vertical for the Indian IT services sector. However for Tech Mahindra it's not a big contributor to revenues. In 2QFY14 BFSI contributed just 9% of sales and the company is looking to improve this situation. Also the company has a stated revenue target of US$ 5 bn by 2015. Acquisitions are the only way that the company can meet this ambitious goal. Tech Mahindra has termed the news as speculative.
Most telecom stocks are trading lower today. Reliance Communications and Tata Communications are among the stocks leading the losses. As per a leading business daily, the telecom department has issued notices to Bharti Airtel, Idea Cellular, Reliance Communications and BSNL regarding the accuracy of their location based services (LBS). The department has demanded a compliance report on the same. LBS is a service that enables government agencies to detect and track people that they want to monitor for national security reasons. It was made mandatory in May 2011 but there has been opposition to this move by telecom companies due to additional capex requirements that LBS would entail. So far only Tata Teleservices, Vodafone, MTNL, SSTL, Aircel, Telewings (Uninor) and Videocon have complied with this regulation.