After opening firm, the Indian Indices have given up the early gains and have slipped into the red in the morning session. The selling pressure is the highest in the banking, pharma and auto indices; while the IT and oil & gas indices are trading in the green.
The BSE-Sensex is trading down 78 points. The NSE-Nifty is trading down 18 points. The BSE Mid Cap index is trading flat and the BSE Small Cap index is trading up 0.4%. The rupee is trading at 60.45 to the US dollar.
Most software stocks are trading higher today. Tech Mahindra and Tata Consultancy Services (TCS) are leading the gainers. India's fifth largest software firm, Tech Mahindra, has signed a multi-year agreement with Bombardier Aerospace for providing engineering solutions. Bombardier is an existing client of the IT firm and this new agreement will boost the partnership further. As per the agreement, Tech Mahindra will support Bombardier's existing IT operations and will also develop new products for the company. This deal will enable Tech Mahindra to work with Bombardier globally but a large part of the operations will be based in Montreal, Canada. Tech Mahindra has significant domain expertise in the manufacturing/aerospace verticals and plans to develop Canada as its aerospace headquarters where it will employ about 1,200 people in five years time. Tech Mahindra is trading up 0.6%.
Most telecom stocks are trading lower today. Reliance Communications and Bharti Airtel are leading the losers. As per a leading financial daily, India's telecom operators, have written to the Reserve bank of India (RBI) regarding the issue of payment banks. The RBI had issued draft guidelines in July 2014, for setting up payment banks to boost financial inclusion in the country. The RBI had asked for public comments on the guidelines by 28 Aug 2014. The telcos have replied that the proposed regulatory structure governing payment banks is too restrictive. The telcos have argued that as they will not be lending the money that they collect as a payment bank, they should not be subjected to restrictions pertaining to promoter holding, FDI norms and the maximum deposit per customer. They have also asked the RBI to regulate non-financial aspects of this business, like customer service and KYC norms etc, without forcing telcos to separate the financial and non-financial parts of the business of payment banks.