The benchmark indices in the Indian stock market held on to their gains in the last two hours of trade and are trading in the green currently. Stocks from FMCG, Realty and Software space are trading firm, while those from Consumer Durables and Banking are trading weak.
The BSE-Sensex is up by 125 points while NSE-Nifty is trading 33 points above yesterday's closing. BSE Midcap and BSE Small cap indices are also up by 0.4% and 0.5% each. The rupee is trading at 44.74 to the US dollar.
Most of the software stocks are trading in the green with Mahindra Satyam, Tech Mahindra and NIIT Ltd leading the pack of gainers. However, the stock of HCL Infosys is trading weak. As per a leading financial daily, Oracle Corp is likely to exit software services business as part of plans to divest non-core assets. The company is in early-stage discussions with potential bidders and investors for the same.
The Indian arm of Oracle Corp, Oracle Financial Services Software accounts more than 50% of its revenues by selling a banking software product called Flexcube. The company now considers its services division called Prime Sourcing to be a non core business. Selling this unit will help customers such as Citi deploy and maintain Flex cube. Hence, company plans to divest as a part of a broader review. As per the sources, the company has engaged investment bank Credit Suisse to assist the firm for a potential transaction of this sort. The stock of Oracle Financial Services Software is trading in the green.
Aluminium stocks are trading mixed with Hindalco leading the pack of gainers. However, NALCO is trading in the red. Hindalco Industries Ltd. has announced results for 4QFY11. The company registered net sales of Rs 67.6 bn, up 26.4% YoY for the quarter. The operating profit for the quarter was up by 9.5% YoY. The net profit rose 6.7% YoY to Rs. 7.1 bn. The company attributed the strong performance to better geographic and product mix along with higher commodity prices on London Metal Exchange and better copper volume.
As per the management, the adverse impact of rupee appreciation, higher coal and carbon cost and lower treatment charges and refining charges were compensated by improved operating efficiency and higher value-added by-product credit in copper business.