Indices in the Indian stock market came off the day's highs during the closing stages of the day but could not avoid a negative ending. Consequently, BSE-Sensex closed lower by around 30 points (down 0.2%) whereas NSE-Nifty closed mostly flat. BSE Mid cap and BSE Small cap indices also closed marginally lower today. Nearly 4 stocks closed lower for every 3 that closed the day in the positive.
While most Asian stocks closed lower today, Europe is trading in the positive currently. The rupee was trading at Rs 50.3 to the dollar at the time of writing.
This is the third day in succession that the markets have ended on a negative note. The nervousness seems to be on account of renewed concerns with respect to the domestic economic growth and also inflation what with crude prices threatening to make new highs. It should be noted that India imports close to 80% of its crude oil requirement and thus a jump in the same worsens India's trade as well as fiscal balance. Against this backdrop, it would be interesting to see the Indian Government's approach in the forthcoming budget. Whether it bites the bullet or continues to go down the path of fiscal recklessness will perhaps decide which way the markets move next. Slightly negative bias till then will prevail perhaps.
As per reports, IT major Infosys is planning to establish one more software development centre in the state of Maharashtra. But this time, the project site may not be Pune but the Orange City of Nagpur. The company has signed a MoU with Maharashtra Airport Development Company (MADC) for an allocation of 142 acres of land. The total investment by the company could be in the region of Rs 100 crores. Infosys is believed to start operations within three years and may provide jobs to about 2,000 software engineers. It should be noted that at present, the tech giant has 64 offices and 68 development centres in India and abroad and more than 1.4 lac employees on its rolls. The stock closed higher by 1% today.
The textile industry has come up with its budget wish list and on top of that list is the demand for continuation of the technology upgradation fund scheme, known popularly as the TUFS. The industry has argued that since the scheme is crucial to all the inter connecting sectors such as spinning, weaving, knitting, processing and garmenting, it should be in place during the entire 12th five year plan. Besides this, the sector has also made other demands like the income of seed companies to be treated as agriculture income and the withdrawal of mandatory 10% excise duty on branded garments. Textile stocks closed mostly lower today with leading losers being Welspun India and Alok Industries.