After opening in the red the Indian indices have recovered a bit but are still trading negatively in the last two hours of the trading session. Amongst sectoral indices selling is seen in the Bankex, Auto and FMCG.
The BSE-Sensex is trading down 29 points and the NSE-Nifty is trading flat. The BSE Mid Cap index is trading up 1.1%, while the BSE Small Cap index is trading up 1.4% today. The rupee is trading at 59.3 to the US dollar.
Auto stocks are trading mixed today. Maharashtra Scooters and Escorts Ltd. are leading the gainers; while TVS Motor and Mahindra and Mahindra (M&M) are leading the losses. The Maruti Suzuki management met Gujarat chief Minister Anandi Patel to discuss its implementation of the Rs 40 bn car manufacturing project in North Gujarat. The Gujarat government has advised the company that taking legal advice will help the company sort out technical glitches which might arise from a two-company model at its proposed Gujarat facility.In June 2012, Maruti had signed a state support agreement with the Gujarat government for the purchase of land and the setting up of a manufacturing facility. As per the original plan, Maruti was supposed to be both the producer and seller. However, with a change in plan In January 2014; its subsidiary- Suzuki Motor Gujarat Ltd would be the exclusive producer and seller of cars to the parent. Therefore, now concerns have arisen regarding the VAT refunds in this two-company model with respect to production and sale. Maruti is trading up 0.7% today.
Software stocks are trading mixed today. HCL Technologies and Wipro are leading the gainers; while Infosys and TCS are leading the losers. According to a leading business daily; India's second largest software firm Infosys, has developed a software solution for the pharma industry. The Clinical Trial Supply Management (CTSM) solution, will aim to improve efficiencies and supply drugs at lower costs to pharma companies. Infosys already had such a solution among its software services but the company has now developed it on the cloud platform. The new solution will cover demand and supply planning as well as distribution across different clinical sites of pharma majors. Infosys is trading down 0.1% today.