Tensions in Libya caused crude prices to once again climb up to over US$ 100 per barrel levels. With no signs of the Middle East crisis easing immediately, investor in the Indian stock market remained cautious throughout the session today.
While the BSE-Sensex closed lower by around 40 points (down 0.2%), the NSE-Nifty shed around 9 points (down 0.2%). The NSE-Nifty and BSE Small cap both closed lower by 0.3%. As regards global markets, most other Asian indices closed firm today with Japan seeing a strong 2.7% rise. European indices have also opened on a positive note. Japan, was successful in cooling nuclear reactors at a crippled plant. With some concerns easing in Japan, Asian stocks, with the exception of India, had a positive outing today. The rupee was trading at Rs 45.04 to the dollar at the time of writing.
Companies in India have intentions of hiking their IT spends in 2011. Overall IT spending in India is expected to be over US$ 70 bn this year. With higher growth expected in the country, companies are looking at increasing their spending budgets versus peers in China and other countries in the APAC (Asia Pacific) region, according to global research group Gartner. Spending on software is the major priority which includes spending on new licenses as well as software maintenance and support. Companies like TCS, Wipro and HCL Tech are expected to benefit due to their higher exposure to the domestic market.
M&M plans on launching its new global SUV (sports utility vehicle) and two models from the SsangYong Motor Company (SYMC) portfolio in FY12. The company acquired 70% of SYMC last year. The largest utility vehicle manufacturer in the country will be assembling new Ssangyong models at its Chakan plant near Pune with an investment of less than Rs 1 bn. The models that set to be launched are called Rexton and Korando-C. The launch of the new global SUVs will strengthen company’s position in the Indian market. It will also help improve market competitiveness versus its rivals.
However, rising interest rates as well as higher input costs continue to plague M&M, along with all other auto manufacturers.