After opening in the green, the Indian Indices are trading above the dotted line in the last two hours of trading. The buying interest is the highest in FMCG and energy stocks while the selling pressure is limited to software stocks.
The BSE-Sensex is trading up 80 points and the NSE-Nifty is trading up 21 points. The BSE Mid Cap index is trading up 0.5% and the BSE Small Cap index is trading up 0.6% today. The rupee is trading at 60.21 to the US dollar.
Telecom stocks are trading mixed today. Idea Cellular and Reliance Communications are leading the gainers while Tata Teleservices and Bharti Airtel are leading the losers. As per a leading financial daily, the three leading GSM operators in the country Bharti Airtel Idea Cellular and Vodafone have started to acquire 3G customers in circles where they do not have a license via roaming partners. This has been made possible by the recent TDSAT order which had allowed intra-circle 3G roaming. The three firms are offering attractive offers to lure customers as fast as they can because they fear that the Department of Telecom (DoT) will appeal the TDSAT order in the Supreme Court. The telecom tribunal TDSAT had last week, not only allowed 3G roaming but had also quashed the Rs 12 bn penalties slapped on the three mobile companies.
Most software stocks are trading lower today. Tech Mahindra and Wipro are leading the losses. As per news reports, India's fourth largest software firm HCL Tech will continue its expansion drive in the US backed by local hiring. The company wants to create an innovation driven culture to boost its prospects in the US. As per HCL Tech, Fortune 500 clients in the US no longer want only a low cost proposition when it comes to software contracts. They are looking to partner IT firms that will add value to their own products and services. HCL Tech is looking to build up its talent pool in the US to cater to this increasingly important trend. The US is by far the largest market for Indian IT firms including HCL Tech. The company's stock is trading flat today.