Indian equity markets have continued to be firm during the previous two hours of trade. The most noticeable upward movements have been witnessed in the capital goods and FMCG sectors while auto and IT have faced the maximum selling pressures.
IT stocks are trading on a mixed note with Tech Mahindra and Mahindra Satyam leading the gains while NIIT Ltd and HCL Tech are leading the losses. According to a leading financial daily, Tata Consultancy Services (TCS) has agreed to pay US$30 m to settle a seven year old case filed by two former employees. The law suit alleged that its non US citizen employees were required to sign power of attorney agreements delegating an outside agency to calculate and submit each employee's tax return to the State and Federal authorities. The law suit also claimed that the employees were asked to send the tax refund cheques back to TCS. The management of TCS has not admitted to any wrongdoing stressing further that none of the allegations were proven by the court of law. The management has further stated that it decided to settle the matter to eliminate any ongoing distractions to its associates and management. TCS's stock is trading down by 0.93%.
Auto stocks are trading on a mixed note. While Bajaj Auto and Eicher Motor are leading the gains, Force Motors and Tata Motors are leading the losses. According to a leading business daily, Mahindra Reva, the Country's only electric car company and a part of the conglomerate, Mahindra and Mahindra (M&M), is drawing up plans to monetise its intellectual property(IP) to transform itself from being just a carmaker to a company which also provides solutions in the electric vehicle technology space. Mahindra Reva has deep expertise in the electric vehicle technology space, which it has developed over a period of 15 years. The company initially plans to licence its technology within the Mahindra Group, which is working on the electric version of its sedan, Mahindra Verito. In the long run, Reva plans to licence its IP to other carmakers as well. Mahindra Reva's key research areas include drive technology and lighter materials and it has a repertoire of 30 patents connected with energy management and efficiency of electric cars. M&M's stock is trading up by 0.52%.