After opening in the green, the Indian indices have remained flat in the last two trading hours amid out performance among mid and small cap stocks. Engineering stocks are leading gainers. The selling pressure is highest in pharma stocks.
The BSE-Sensex is trading up 7 points and the NSE-Nifty is trading up 2 points. The BSE Mid Cap index is trading up 0.7% and the BSE Small Cap index is trading up 0.8%. The rupee is trading at 60.19 to the US dollar.
Most software stocks are trading lower today. Tech Mahindra and HCL Technologies are among the stocks leading the losses. As per a leading financial daily, India's leading software firm Tech Mahindra has begun working on futuristic technologies like driverless cars and drones to keep pace with the leading software firms of the west. The firm is working on such technologies at its research centers in India and abroad. An example of a potential application that could come out of the research is a digital cockpit that would remove the need to have rear view mirrors in cars. The company believes that such futuristic technologies have the potential to grow at 30-40% annually in a few years. Currently such technologies do not form a big part of revenues for Indian IT firms. Tech Mahindra is trading down 1.3% today.
Most of the power stocks are trading positive today. Torrent Power and CESC Ltd are leading the gainers. According to a leading business daily, National Thermal Power Corporation (NTPC) has settled dues of two subsidiaries of Coal India Ltd (CIL). This has brought an end to a tussle between the two companies over quality of coal CIL was supplying. The concerned subsidiaries are Eastern Coalfields and Bharat Coking Coal. The dues of other subsidiaries are likely to be cleared in a fortnight. NTPC owed Rs 30 bn to CIL as on March 23, 2014, out of which dues of Rs 20 bn remain to be paid. Since last one year, NTPC had started paying CIL on the basis of quality of coal the former sampled at CIL's stations. Due to this, CIL had stopped fuel supply to NTPC for a few days in April last year. However, now, coal produced from almost all mines is sampled by an independent party. This has helped settle disputes over the coal quality between supplier and procurer. NTPC is trading 1.6% up today.