Indian equity markets continued to trade weak during the last two hours of trade after opening weak earlier in the day. Among sectoral indices, there was mixed performance. While realty and power stocks led the gains, auto and energy stocks witnessed selling pressure.
The BSE-Sensex is down by 65 points and NSE-Nifty is down by 22 points. However, BSE Mid Cap and BSE Small Cap indices are trading higher by 0.1% and 0.2% respectively. The rupee is trading at 55.75 to the US dollar.
Automobile stocks are trading weak led by Tata Motors and Mahindra & Mahindra (M&M). As per a leading daily, M&M has signed an agreement for a joint venture (JV) with Telephonics Corporation to provide defence and communication systems to the Indian Ministry of Defence and the Indian Civil sector. The JV will provide radar and surveillance systems, Identification Friend or Foe (IFF) devices, and communication systems. The JV company will be called Mahindra-Telephonics Integrated Systems (Mahindra-Telephonics). Mahindra-Telephonics will source technology from Telephonics which is a leading designer, developer, and manufacturer of high-technology integrated information, communication and sensor system solutions to military and commercial markets worldwide. It is also expected to supply systems for Air Traffic Management Services, Homeland Security, and other emerging surveillance requirements.
Telecom stocks are trading in the green led by Tata Communications and AGC Networks. According to a leading financial daily, Idea Cellular added maximum number of users for the quarter ended March 2012 followed by Uninor and Bharti Airtel. Idea added 6.34 m new users while Uninor and Airtel added 6.13 m and 5.58 m. According to January-March quarterly data released by sectoral regulator Telecom Regulatory Authority of India (TRAI), the total telephone subscriber base in the country grew by 2.68% to reach 951.34 m at the end of March 2012. The total wireless (GSM and CDMA) subscriber base grew 2.83% during the quarter to reach 919.17 m at the end of March 2012. Internet subscriber base grew 2.1% during the quarter to reach 22.86 m at the end of March 2012 from 22.39 m at the end of December 2011.