After opening in green Indian share markets gained further momentum in the last two hours of trade. Barring FMCG and Capital goods, all other sectoral indices are trading in the green. Metal and Auto indices have been the biggest gainers.
Most of the mining and metal stocks are trading positive today. Tata Steel, SAIL and NMDC are few stocks which are leading the gains. MOIL and Bhushan Steel are leading the losers. Tata Steel declared its 1QFY14 results yesterday. The company reported 3% YoY decline in consolidated sales in 1QFY14 due to subdued global steel demand. The company reported 90.5% YoY growth in consolidated net profit at Rs 11.4 bn for 1QFY14 due to significant decline in tax expenses. Tata Steel's standalone net sales were up 6.15% at Rs 93.7bn. The net profit for standalone India business of Tata Steel remained flat YoY at Rs 13.6bn. Tata steel is trading up by 6% today.
Most of the IT stocks are trading in the green. Wipro is up 2.6% and TCS is up 1.8%. In a recent development, a group of 8 Indian IT companies have formed a lobbying consortium, regarding the new US Immigration Bill. NASSCOM had already negotiated with the US congress to remove all the negative effects of this particular bill on Indian IT companies. Now, the companies themselves have got together to put forth their views to the US congress. The consortium will be preparing a roadmap in order to put forth a discussion with the US Congress, in order to remove the clauses that are detrimental to Indian IT.
The bill, which was passed by the US Senate and is before the House of Representatives, proposes several changes including higher visa costs and an increase in wages for H-1B visa holders. If passed by the House of Representatives, the bill will be sent to President Barack Obama for signing it into law. The biggest issue that Indian IT companies have is the outplacement clause, which will lead to a rise in costs for Indian IT companies. So far Infosys, Mindtree and Hexaware are currently involved in the lobbying body. However, TCS, Wipro, HCL Tech and Tech Mahindra have not yet joined the group. The group is currently in talks with legal and immigration experts.