Indian equity markets have remained in red during the previous two hours of trade. Capital goods and consumer durables sectors are leading the gainers while PSU and metal stocks are facing the maximum selling pressures.
IT shares are trading on a mixed note with Mahindra Satyam and Tech Mahindra leading the gains while NIIT Ltd and Infosys Ltd are leading the losses. According to a leading financial daily, TCS iON, a no-frills technology solution to small businesses in a pay-as-you-go model has hit operational snags. The challenges in the two-year-old project could potentially spoil India's largest software exporter's hopes of earning a billion US dollars in sales from iON by 2016. Tata Consultancy Services' revenue in 2012-13 totalled about US$ 12 bn. By offering what it bills as a simple and inexpensive enterprise resource planning software for some 30 m small businesses, TCS aims to go where not many technology services companies have ventured successfully. The product offers software solutions to manage human resources, inventory and basic office applications such as email and website services. Third-party sales partners that TCS works with and industry observers said that customer acquisition has slowed after the initial rush, as promotional activity waned and implementation at some clients took longer than anticipated. TCS's share has remained flat since yesterday's closing.
Engineering shares are trading on a mixed note with Manugraph India and Crompton Greaves leading the gains and Jyoti Structure and Everest Kanto Cylinder leading the losses. According to a leading financial daily, Larsen & Toubro Ltd (L&T) has won an infrastructure contract worth nearly US$300 million from Saudi Aramco as India's biggest construction and engineering firm chases overseas projects to offset a slowdown at home. L&T has steadily expanded its global footprint, recently winning a construction project at the Abu Dhabi airport. The firm is further bidding for about US$ 3 bn worth of projects in the region, including more construction work for Aramco and an oil refinery in Oman. In the Aramco project, L&T will build a plant with a daily capacity to process 75 m standard cubic feet (scfd) of gas and 4,500 barrels of condensate. L&T's share is trading up by 1.4%.