After opening on a mixed note, the Indian Indices are trading well above the dotted line in the morning. All sectoral indices are trading in the green. The buying interest is the highest in software and auto stocks.
The BSE-Sensex is trading up 185 points and the NSE-Nifty is trading up 56 points. The BSE Mid Cap index is trading up 0.8% and the BSE Small Cap index is trading up 1.1%. The rupee is trading at 60.38 to the US dollar.
Software stocks are trading positive today. HCL Technologies and Wipro Ltd are leading the gainers. India's fourth largest software firm HCL Technologies has announced third quarter results for FY14 (the company has a June year ending). The results have surpassed market expectations. HCL's Application Services business registered a robust performance led by its Digital Systems Integration proposition on the discretionary side and its ALT ASM business on the non-discretionary side in this quarter. The company's revenue has risen by 2% QoQ to Rs 83.5 bn. The company's EBIT has expanded by 6.1% sequentially and 44.5% YoY resulting in a healthy EBIT margin of 24.6%. Its consolidated net income for the quarter has risen to Rs 16.2 bn from Rs 10.2 bn in the same period last year. There is a sequential (QoQ) growth of 8.5% in profit after tax (PAT). HCL Tech is trading 1.3% up today.
The Reserve Bank of India (RBI) has taken an important decision regarding the country's forex rate. The RBI has suggested setting up an independent body to recommend a benchmark forex rate. This, the RBI believes, will reduce the chance of forex, manipulation by banks. The RBI has directed Fixed Income Money Market and Derivatives Association of India (FIMMDA) and Foreign Exchange Dealers Association of India (FEDAI) to take necessary steps to act as administrators of the Indian rupee interest rate and the forex rate respectively. The benchmark setting process is currently plagued with conflicts of interest due to the corporate governance structure of the two institutions. This is an important development after the manipulation of the London Interbank Overnight Rate (LIBOR) had come to light in June 2012. The suggestions will help to prevent such manipulation in the Indian forex markets.