After opening weak, the Indian Indices are below the dotted line in the morning session amid outperformance among mid and small cap stocks. The buying interest is highest energy stocks while the selling pressure is the highest in engineering stocks.
The BSE Sensex is trading down 16 points and the NSE-Nifty is trading down 9 points. The BSE Mid Cap index is trading up 0.7% and the BSE Small Cap index is trading up 0.6%. The rupee is trading at 61.88 to the US dollar.
Most software stocks are trading lower today. HCL Tech and Wipro are among the stocks leading the losses. India's leading software firm, Tech Mahindra, has clarified regarding rumors about the possible acquisition of Financial Technologies (FT) by the company. The company refused to confirm to a leading news service whether they had met the restructuring committee of FT. However, they stated that any talk of a Satyam like acquisition of FT, by the company, were premature and a deal had not been discussed with the promoters. This clarification has come after there was speculation that Tech Mahindra was considering buying out the promoter's stake in Financial Technologies. It must be pointed out that the company has outlined acquisitions to be its main driver for growth. However, Tech Mahindra has very little domain expertise in the business that FT operates in. Tech Mahindra is trading up 2.2% today.
Automobile stocks are trading mixed today. While Escorts and TVS Motors are trading in the green, Tata Motors and Bajaj Auto are witnessing selling pressure. India's leading two and three wheelers major, Bajaj Auto has released its February 2014 sales numbers on the BSE today. The company has reported 6% YoY decline in its overall sales volumes during the month. Its motorcycles sales were down by 6% YoY to 273,323 numbers, while the commercial vehicles were down by 3% YoY to 39,971 vehicles during the month. However, there was respite from the sales in the export markets which, increased by 5% YoY during to 142,009 vehicles for the month of February 2014. The stock of Bajaj Auto is trading lower by 1.4% today.