After opening weak, the Indian Indices are trading below the dotted line in the morning session. With the exception of the pharma index all other sectoral indices are trading in the red.
The BSE Sensex is trading down 50 points and the NSE-Nifty is trading down 20 points. The BSE Mid Cap index is trading up 0.3% and the BSE Small Cap index is trading up 0.2%. The rupee is trading at 61.51 to the US dollar.
In some good news for the Indian economy Foreign Direct Investment (FDI) into the country has grown for the second consecutive month in February. It is up by 12.3% YoY at US$ 2 bn. While this might be a small comfort for the economy, it must be noted that for the full financial year so far (Apr-Feb period), FDI has dipped by 0.6% YoY. Services attracted the highest FDI (US$ 2.2 bn) followed by the automobile sector (US$ 1.3 bn). For an improvement in GDP growth it is imperative that FDI into India must pick up significantly.
Automobile stocks are trading mixed today. While Maharashtra Scooters and Eicher Motors are leading the gainers; Tube Investments and Tata Motors are leading the losers. According to news reports, Bajaj Auto is unfazed by a recent court ruling in its one year long labour dispute. The Bombay high court has refused to stay the court proceedings in the case even though the workers at its Chakan plant have postponed their strike by two weeks. Bajaj Auto has refused to entertain a demand for the worker's union for higher wages, claiming that the pay offered to workers was already among the best in the industrial region. Bajaj Auto is trading 0.5% down today.