After opening on a marginally positive note, the Indian Markets have added to their early gains. Sectoral indices are trading mixed with stocks from the banking and auto sectors leading the gains. However IT and energy stocks are witnessing selling pressure.
The BSE-Sensex is trading up 80 points (up 0.3%) and the NSE-Nifty is trading up 18 points (up 0.2%). The BSE Mid Cap index is trading up by 1% while the BSE Small Cap index is trading up 1.1%. The rupee is trading at 63.96 to the US dollar.
Finance stocks are trading on a mixed note with IFCI and Indiabulls Financial Services leading the gainers. As per a leading financial daily, infrastructure finance company IDFC has decided to set aside an additional Rs 25 bn for provisioning in the June-September quarter. This is being made on account of stressed loans on assets relating to the gas and power sector. Stressed assets for the company, which include restructured book, non-performing assets and security receipts, stood at 8.4% of the overall loan book. IDFC is in the run-up of becoming a bank for which it has received a universal banking license from the Reserve Bank of India (RBI). The company is going to start its banking operations from October 1 for which it has received a final approval last week. For the quarter ended June, 2015, the company posted a 46.4% drop in its standalone net profit. Presently the scrip of IDFC is trading up by 1.5%.
Stocks in the software space are trading mixed with Oracle Financial Services leading the gains and HCL Technologies leading the losses. According to financial times, India's fourth largest IT services company HCL Technologies has reported its numbers for the quarter ended June 30, 2015. For the concerned period, it witnessed a 5.5% sequential rise in its revenue. Net income for the quarter rose by 5.9% on a sequential basis. Revenue in the engineering and R&D services vertical grew 1.9% during the quarter as against 4.6% during the last quarter. Stock of HCL Technologies is currently trading down by 4.7%.