Steel stocks are trading strong led by JSW Ispat and JSW Steel. According to a leading financial daily, Steel Authority of India (SAIL) is setting up a Rs 16 bn universal rail mill at its Bhilai facility in Chhattisgarh to produce single 130 meters rails. The rail mill will have a 1.2 m tonne capacity and it will be the first time that any company is producing heavy rails in India. SAIL is already the sole supplier of rails to the Indian Railways and the company has contributed about 7% of the total freight business of the Indian Railways in India in both volume and monetary terms. Till date SAIL has supplied over 16 m tonnes of rails to the Railways.
IT stocks are trading in the red led by Tata Consultancy Services (TCS) and Wipro. According to a leading financial daily, Tata Consultancy Services (TCS), the leading IT services, consulting and business solutions firm, has inked a pact with Mitsubishi Corporation, an integrated global business enterprise to form a new joint venture (JV) - Nippon TCS Solution Center for the Japanese market. The company will invest US$ 5 m and will have 60% holding in the joint venture. It will also establish a near shore delivery centre in Japan and have 1,500 employees. Nippon TCS Solution Center will offer a full-service suite of IT, business process outsourcing (BPO) and infrastructure services to Japanese corporations. This is only the second time that TCS has opted for a JV route to enter a new market. TCS has presence in China since 2002 and chose the JV route with the government there in 2007, as it started to expand into the domestic Chinese market. TCS has had presence in the Japan market for close to 20 years.