Indian stock markets pared some of their opening gains on profit booking in heavy weights during the last two hours of trade. Stocks from the IT and metals space are trading firm while stocks from the oil & gas space are trading weak.
The BSE-Sensex is up by 81 points while NSE-Nifty is trading 21 points above the dotted line. BSE Midcap index is up by 1.9% while BSE Small cap index is trading 2% above Friday's closing. The rupee is trading at 44.43 to the US dollar.
IT stocks are trading firm led by Oracle Financial Services and Moser Baer India. As per a leading financial daily, Wipro Technologies has announced that it would acquire Science Applications International Corporation's global oil and gas IT business. The all cash deal is valued at US$ 150 m and is expected to help the IT company's energy business unit. SAIC's oil and gas unit provides consulting, system integration and outsourcing services to global oil majors. The acquisition would increase the upstream revenue mix of Wipro from 5% to 17.5%. Post acquisition, Wipro's energy business unit will form 11% of the company's total revenues. The transaction will result in movement of 1450 employees to Wipro across North America, Europe, India and Middle East. SAIC's customer base would also be shifted to Wipro. As per management, Wipro's energy, natural resources and utilities SBU is a high-growth unit and this acquisition will further strengthen Wipro's leadership position.
Engineering stocks are trading firm led by Manugraph India and Voltamp Transformer. As per a leading financial daily, Crompton Greaves is looking to acquire Landis+Gyr. Landis+Gyr is an energy management firm headquartered in Zug, Switzerland. The firm's product portfolio includes smart meters which helps in increasing energy efficiencies. The company's sales stood at US$ 1.36 bn and its operating profit stood at US$ 161 m in 2009. However, this story could not be verified as the companies' spokespersons declined to comment. It may be noted that as per market reports, privately owned Landis+Gyr is considering a dual track listing on the New York Exchange and a possible stake sale.
That Crompton has been looking for growth through acquisitions is no secret. Last year, the company acquired UK-based electrical engineering firm Power Technology Solutions (PTS) for Rs 2 bn. This was Crompton's sixth acquisition since 2005.