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Indian Indices remained entrenched in the positive territory amid strong global cues. Sectoral indices are trading in the green with stocks from the <>auto and IT sectors witnessing maximum buying interest.
The BSE Sensex is trading lower by 320 points (up 1.2%) while the NSE Nifty is trading higher by 103 points (up 1.2%). Both BSE Mid Cap and BSE Small Cap indices are trading flat. Gold prices, per 10 grams, are trading at Rs 30,960 levels. Silver price, per kilogram is trading at Rs 44,135 levels. Crude oil is trading at Rs 3,175 per barrel. The rupee is trading at 67.08 to the US$.
As per a leading financial daily, in a move to revamp its business, Infosys has decided to split its business into smaller units which will be handled by the next generation of management.
Reportedly, each split unit will have independent profit and loss (PNL) target. This would enable scalability, freedom of operation and accountability. The smaller business units will be led by a new team of management leaders, the company stated.
The units will have a revenue target ranging between US$500 million and US$700 million each. Moreover, the clients under them will be scaled down resulting in greater focus on the client's requirements, the reports noted.
In line with the company's Zero Distance strategy, whether these smaller business units will add further value to the company's operations will be an interesting thing to watch out for going forward.
One must note that, Infosys' rival Tata Consultancy Services (TCS) had made a similar move in 2009. TCS has 23 smaller business units with revenues around US$250 million. Also, Infosys' fate has gone through a transformation after Vishal Sikka took over as CEO and Managing Director in August 2014. The deal momentum and deal sizes have picked up, as have repeat orders from the company's top clients.
In another development, Wipro Limited and Stibo Systems, a multi-domain Master Data Management (MDM) solutions, announced a partnership, that will see the two companies collaborate to offer MDM solutions. This partnership is reportedly aimed at building trust-worthy data foundations to help joint customers derive accurate insights.
As per an article in The Economic Times, Indian auto industry suffered a revenue loss of Rs 40 billion between December and August in the engine capacity of 2000cc and above.
On 13th August, the Supreme Court lifted an eight-month-old ban on the registration of large vehicles fueled by diesel in the national capital region (NCR) centered around Delhi. It was made conditional on manufacturers to pay a levy for polluting the city's air. Automakers (including suppliers) were hardly prepared for the ban, especially, after investments to the tune of Rs 750 billion being already made in diesel engines.
Vinod K. Dasari, president of Society of Indian Automobile Manufacturers (SIAM) said that, led by media hype, provided with improper information, the courts decided to ban those vehicles which actually meet the standards set by the government. According to him, less than 20% pollution comes from the auto industry.
According to rating agency ICRA, 30% of the utility vehicle segment was affected by the ban. In addition, 50-60% of the luxury car market in India, which is 35,000 units per annum, was also hurt by the ban. However, the latest Supreme Court's conclusion has come as a relief for automobile industry, after experiencing a significant sales dip since December.
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