Indian stock market continued to trade flat over the last two hours of trade. Stocks from the consumer durable, realty and FMCG space are leading the pack of losers, while stocks from the software and capital goods sectors are trading firm.
The BSE-Sensex is trading up by 11 points while NSE-Nifty is trading flat. BSE Midcap index is down by 0.6%, while the BSE Small cap index is trading 0.5% below yesterday's closing. The rupee is trading at 44.84 to the US dollar.
Engineering stocks are trading mixed with Jain Irrigation Systems, Opto Circuit and Praj Industries leading the pack of gainers. However, Cummins India and Welspun Corp are trading weak. As per a leading financial daily, L&T's Construction Division (Power Transmission & Distribution IC) has bagged major orders from gulf coast countries aggregating to Rs 14 bn. The company's Saudi Arabian subsidiary has bagged an order valued at around Rs 6 bn for construction of the 225 km of 380kV transmission line project from Saudi Electricity Company (SEC) connected with Haramain High Speed Railway. The project is expected to be completed in 24 months. The company also bagged two EPC orders aggregating Rs 5 bn from UAE. The first project is from Abu Dhabi Ports Company (ADPC), valued at Rs 4 bn. It is expected to be completed in 18 months. The other order from UAE is from Dubai Electricity & Water Authority (DEWA), valued at Rs 0.7 bn and expected to be completed in 11 months. The company has also secured an order worth around 1.9 bn from Qatar General Electricity & ater Corporation (KAHRAMAA). This order has been bagged against stiff competition from International Cable OEMs. In addition, its joint venture (JV) company in Muscat Oman has secured an order worth around Rs 0.9 bn with an expected completion timeline of 9 months.
Software stocks are trading mixed as well with Infosys, Tech Mahindra and Mphasis Ltd leading the pack of gainers. However, HCL Infosys and TCS are trading weak. As per a leading financial daily, IT majors like TCS, Infosys and HCL Technologies are interested in acquiring a unit of UK-based Misys that focuses on banking products. These companies are among potential bidders for Misys's banking product business. Infosys and TCS want to increase their banking software products business through this acquisition, while this can serve as an entry for HCL Technologies into the profitable business of software licensing.
This acquisition can create one more opportunity for Infosys or TCS. These IT majors can replace the Misys core banking software with their own product. Misys have a very large customer base. This also creates a very good opportunity for cross selling of other services.