While buying activity persisted across index heavyweights during the previous two hours of trade, the movement in the indices was largely rangebound. Currently, stocks from the auto, software and energy sectors are dragging the indices lower, while stocks from the FMCG, realty and power sectors are trading higher.
The BSE-Sensex is trading higher by 32 points while the NSE-Nifty is trading higher by 12 points. The BSE-Midcap and BSE-Smallcap indices are trading higher by 1% each. The rupee is trading at 44.44 to the dollar.
Software stocks are trading mixed currently. While Infosys and Wipro are trading in the red, Tech Mahindra is finding favour. As per a leading business daily, Wipro has taken a decision to quit its baby care and vegetable oil business. This move is a part of the company’s strategy to focus on the consumer care division’s personal care segment. While the consumer care division accounts for around 8% of Wipro’s overall revenues, the baby care and the vegetable oil business together contributed less than 3% of the revenues. It must be noted that during 3QFY10 this division reported a muted growth of 2.5% QoQ.
Power stocks are trading firm currently and the key gainers here include Power Grid Corp, NTPC and Tata Power. As per a leading business daily, the joint venture between NTPC and Nuclear Power Corporation of India (NPCIL) is likely to build two 700 MW nuclear power plants at a site identified by the Department of Atomic Energy (DAE). It must be noted that both these companies had entered into a JV in February last year to build nuclear power plants. Given the climate change issues that have cropped up and the need for energy in a growing economy like India, nuclear energy has assumed considerable importance. In this regard, NTPC has envisaged investing around Rs 10 bn for setting up nuclear power plants having capacity of atleast 2,000 MW.