Indian stock market
gained over the last two hours of trade and is now trading in the green. Stocks from the software, capital goods and consumer durables space are trading firm while those from the FMCG space are losing the most.
is trading up by 164 points while NSE-Nifty
is trading 53 points above yesterday's closing. The BSE-Midcap and BSE-Small cap indices are up by 1.0% and 1.1% respectively. The rupee is trading at 45.65 to the US dollar.
Most of the Software stocks have been trading firm with Tata Consultancy Services (TCS), Patni Computers and Infosys Ltd leading the pack of gainers. However, Mahindra Satyam is trading weak. As per a leading financial daily, the Income Tax Department has slapped a tax penalty of Rs 21 bn on Mahindra Satyam after disallowing exemptions claimed by the company. As per a company filing, the company had received draft notices of demand for Rs 10.4 bn and Rs 10.7 bn for assessment years 2002-03 and 2007-08, respectively. As per a company official, the company has not yet received the notice and it may approach Income Tax tribunal for justice. The company feels that the tax was levied on fictitious income which is unfair. Tech Mahindra had acquired Satyam Computer after a multi-crore accounting fraud in the company came to light in January 2009 post which the company was re-named as Mahindra Satyam.
Power stocks have been trading mixed with GVK Power, CESC Ltd and Neyveli Lignite leading the pack of gainers. However, National Thermal Power Corporation (NTPC) and Power Grid Corporation are trading weak. As per a leading financial daily, Coal India Unions have demanded a 100% hike in their salaries. It is estimated that this will put the company under severe financial constraint. The wage costs for the company already account for 42% of its expenditure. As per the reports, the company management has met five unions to negotiate salary hike under the National Coal Wage Agreement which expired on June 30, 2011. Apart from the wage hike, the unions have also asked for a better parity between workers on its payroll and contract workers. Infact, one of the unions has also demanded a five-fold hike. The stock of the company is trading in the red.