After opening weak, the Indian indices are trading well below the dotted line in the morning session. All sectoral indices on the BSE except are trading in the red. The selling pressure is the highest in banking and engineering stocks.
The BSE Sensex is trading down 220 points and the NSE-Nifty is trading down 68 points. The BSE Mid Cap index is trading down 1.3% and the BSE Small Cap index is trading down 1.4%. The rupee is trading at 62.76 to the US dollar.
Most software stocks are trading lower today. Tech Mahindra and Infosys are among the stocks leading the losses. According to a leading news daily, India's largest software firm Tata Consultancy Services (TCS), is all set to become India's largest Business Process Outsourcing (BPO) firm. The leading BPO services provider in India currently is Genpact, a company spun off from General Electric (GE) in 2005. TCS has been narrowing the gap with Genpact in terms of revenues for some time now. The gap in revenues was just US$ 3.8 m in the September quarter. Revenues from the BPO division of TCS stood at Rs 25,766 m or US$ 416 m in 3QFY14. It registered a growth of 3.2% QoQ. Genpact, which is listed on the NYSE, is expected to declare results on February 6. TCS has outperformed other Indian IT firms over the last 3 years as well as pure play BPO providers like Genpact, WNS and EXL. Its BPO division has been at the forefront of this growth as large global corporations have looked for IT firms which offer both software services along with BPO services to cut costs and remain competitive. TCS is trading down 0.3% today.
Most automobile stocks are trading weak today led by Escorts and Maruti Suzuki, while Tata Motors is trading firm. As per a leading business daily, Tata Motors is in the final stages to bag an Rs 10 bn contract from Ministry of Defense to supply over 1,200 heavy duty trucks. The move would change the decade long monopoly where such high end truck supplies were imported and procured from Czech based Tatra trucks. These trucks are six wheeled vehicles and are fitted with material handling cranes. The deal has an option of a follow on order for 600 more vehicles and is a three part procurement project that the ministry signed during the previous year. The company has been producing such category of vehicles over the past 3 decades and had wanted to get in to such projects. Tata Motors is trading up 0.8%.