Indian share markets and all sectors have remained in green during the previous two hours of trade. While consumer durables and auto are leading the pack, FMCG and IT have witnessed the lowest upward movements.
All large cap IT shares except TCS, Info Edge, HCL Tech and Wipro are trading in green with NIIT Ltd and HCl Infosystems leading the gains. According to a leading financial news daily, India's second largest software exporter, Infosys has announced an average increment of 8% for India based employees, effective July 1. For employees outside India, the average increments would be around 3%. The daily attributes this decision to the recent appointment of N. R. Narayana Murthy as the Executive Chairman of the Board. Infosys in its 4QFY13 result announcement has given a guidance of 6-10% of revenue growth for the financial year 2014, which is much lower than the NASSCOM industry guidance of 12-14% for FY14. It should be noted that Infosys's share has been underperforming its peers since the last two years and the appointment of Narayana Murthy is expected to bring Infosys back to its growth and profitability track. Experts believe that his presence would help in getting things aligned at Infosys and in creating the company's expertise on the product innovation side. Infosys's share is trading up by 0.5%.
Most engineering shares are trading in green with BGR Energy and Suzlon Energy leading the gains while Sanghvi Movers and Kalpataru Powers are facing the maximum selling pressures. According to a leading financial news medium, State-run Bharat Heavy Electricals (BHEL) is likely to spend about Rs 8700 m as one-time expenditure on the proposed amalgamation of Bharat Heavy Plate & Vessels (BHPV) with itself. There will be annual recurring expenses to the tune of Rs 750 m with regard to employee salaries. Further, an amount of Rs 2240 m will be spent towards liabilities arising out of legal cases and excise duty/ service tax and outstanding loans to BHEL worth over Rs 2340 m. This estimated cost will be funded through the internal accruals of BHEL.
BHEL earlier reported a YoY fall of 4.2% in its net profit for 4QFY13. Total income from operation of the company decreased by 2.2% YoY in 4QFY13. BHEL's share is trading up by 2%.