After opening positively, the Indian Indices have maintained the momentum and are trading above the dotted line during the morning trading session. Barring stocks from consumer durables all other indices are trading in the green. Stocks from oil and gas and capital goods sectors are witnessing maximum buying interest.
The BSE-Sensex is trading up 198 points. The NSE-Nifty is trading up 57 points. The BSE Mid Cap index is trading up 0.8% and the BSE Small Cap index is trading up 1.5%. The rupee is trading at 60.26 to the US dollar.
Most software company stocks are trading higher today, with CMC Ltd and NIIT Ltd being the leading gainers in the pack. As per a financial daily, India's second largest software company Infosys Ltd was mulling over a buyback as the company has huge cash reserves. However, now the company may not opt for a buyback. It may instead use the huge cash in the books for mergers and acquisitions. Reportedly, management thinks the buyback will send out wrong signals and thus are now looking for some new areas. The company might look for acquisition in artificial intelligence area. Further, change in the top management has also kept investors bit vary. Thus the company as of now is not considering buy back of shares.
Leading Indian private steel player Tata Steel is set to pay out a total sum of Rs 1,933.4 million to 30,269 eligible employees of all applicable divisions/units on account of annual bonus for the financial year 2013-14. Out of the total amount, the divisions at Jamshedpur including Tubes Division, will receive an approximate amount of Rs 1,096.7 million as annual bonus amongst 16,687 employees. While the minimum annual bonus payable for 2013-14 will be Rs 20,498, the maximum bonus payable will be Rs 156,758 respectively. A Memorandum of Settlement was signed between company management and Tata Workers' Union for annual bonus on Sunday. It is worth noting that since majority of the employees are drawing salary/wages higher than the limit laid down in the Payment of Bonus Act, 1965, they are not eligible for bonus under the Act. However, respecting the old tradition, the company is going to pay the annual bonus to all employees in the unionised category.