After opening positively, the Indian indices have fallen well below the dotted line in the morning session. The selling pressure is the highest in engineering and software stocks.
The BSE-Sensex is trading down 93 points and the NSE-Nifty is trading down 32 points. The BSE Mid Cap index is trading down 0.1% and the BSE Small Cap index is trading up 0.2%. The rupee is trading at 62.51 to the US dollar.
Most telecom stocks are trading higher today. Tata Communications and Reliance Communications are among the stocks leading the gainers. India's third largest telecom company Idea Cellular has announced that the department of telecom (DoT) has transferred licenses for two circles to the company which was under dispute. The licenses pertain to the circles of Punjab and Karnataka which belonged to the erstwhile Spice Communications. Idea had acquired Spice in 2010 and ended up with overlapping licenses in six circles. This was reduced to just the two circles, currently under dispute, after the Supreme Court had cancelled 122 licenses in its 2G scam verdict in 2012. These licences will enable Idea to launch 3G services in these circles. However the transfer is still subject to the pending verdict of the TDSAT regarding this case. Idea Cellular is trading up 1% today.
Engineering stocks are trading mixed today. While Jyoti Structures and Engineers India are among the stocks leading the gainers; Bharat Heavy Electricals Limited (BHEL) and Elgi Equipments are among the stocks leading the losses. Siemens has announced results for 1QFY14 (September year end). The topline has registered a fall of 4.1% YoY while the bottomline has increased by 2.7% YoY. The company's operating margin was flat on a YoY basis at 6.2%. Finance costs fell significantly by 80.8% YoY. This was a big factor in the improvement in the bottomline performance. Siemens is trading down 0.2% today.