After opening firm note, the Indian indices are trading above the dotted line in the morning session. All sectoral indices on the BSE except the metal index are trading in the green. The buying interest is the highest in pharma and auto stocks.
The BSE-Sensex is trading up 105 points and the NSE-Nifty is trading up 35 points. The BSE Mid Cap index is trading up 0.8% and the BSE Small Cap index is trading up 0.7%. The rupee is trading at 62.13 to the US dollar.
Most software stocks are trading higher today. Tech Mahindra and Wipro are among the stocks leading the gainers. According to a leading news daily, India's second largest software firm Infosys, has won a large contract from an existing customer. TNT Express, the Netherlands based courier service agency, has reportedly signed a deal worth US$ 98.71 m with Infosys which would deepen the business relationship. The contract will be largely offshore in nature and will involve application development and maintenance (ADM) work. The deal will enable TNT Express to cut costs and improve productivity. In 3QFY14, application development and maintenance (ADM) contributed 35.1% of revenues while the contribution from Europe was 24.9% of revenues. Infosys is trading flat today.
Most telecom stocks are trading on a positive note. Tata Communications and Reliance Communications are leading among the stocks leading the gainers. As per a leading business daily, the telecom regulator TRAI has allowed spectrum trading by telcos. It has recommended an outright transfer of spectrum, including full ownership and usage rights, in such deals between telcos. However it has not allowed the leasing of spectrum for now. The Telecom Commission had given an in-principle approval to spectrum trading in October and it was also cleared by the Empowered Group of Ministers (EGoM). The EGoM had then asked TRAI to provide detailed guidelines for trading. This decision is expected to increase more efficient use of spectrum by telcos. As per the new regulations, only the spectrum won at auctions can be traded and there will be a lock in period of 2 years before the traded spectrum can be re-sold by the buyer.