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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Consumer Goods drag markets 
(Wed, 8 Sep 11:30 am) 
 
After starting today's session on a negative note, Indian indices have recouped some losses but are still lingering in the red. Other key Asian markets too are trading weak. Currently, heavyweights in the Sensex are trading weak with stocks from consumer goods and metals space dragging the index. However, stocks from IT and Healthcare space are trading strong.

Currently, the BSE-Sensex is trading down by around 12 points, while the NSE-Nifty is down by about 8 points. However, strong buying interest is witnessed amongst the mid and small cap stocks as the BSE-Midcap and BSE-Smallcap indices are trading up by 0.6% and 0.8% respectively. The rupee is trading at 46.70 to the US dollar.

IT stocks are trading strong with HCL Infosys and Wipro leading the gains. As per a leading news daily, Wipro is planning to make acquisitions in the Latin American and African markets to accelerate the pace of growth. Wipro is exploring both organic and inorganic routes to expand its footprint in these two markets which are growing at a faster pace as compared to US and Europe. Right now, the company has small presence in Latin America and Africa but is looking to expand its business operations there. The company has enough cash to buy out firms in these regions. Acquisition in these regions is not just attractive from business perspective but also from competitive viewpoint. Low cost talent is easily available in these geographies and thus IT vendors can set up offshore centres and be as competitive as India from cost proposition. However, the biggest challenge would be to convince the customers that the standards of Wipro match that of any global company.

Banking stocks are trading positive with Indian Overseas Bank and Bank of Baroda leading the gains. SBI, India's largest PSU lender plans to issue bonds for retail investors up to Rs 10 bn. The bank's board approved the issuance of Rs 5 bn worth of bonds. However, they have an option to retain 100% over subscription, effectively leading to Rs 10 bn issue. These bonds will be used to shore up the bank's tier-II capital. There were no further details available about the proposed bond's maturity profile or interest rate. SBI's chairman O.P. Bhatt had earlier stated that his bank would issue retail bonds worth Rs 2 bn in the first half of 2011. The overall plan for the bank is to raise up to Rs 50 bn in tranches over the next five years

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