After opening weak, the benchmark Indian Indices have remained below the dotted line in the morning session amid outperformance among mid and small cap stocks. Apart from the pharma index, all other sectoral indices are trading in the red.
The BSE-Sensex is trading down 201 points. The NSE-Nifty is trading down 64 points. The BSE Mid Cap index is trading down 0.1% and the BSE Small Cap index is trading up 0.3%. The rupee is trading at 60.66 to the US dollar.
Software stocks are trading mixed today. While Tech Mahindra is leading the gainers; Wipro is leading the losers. India's largest software firm, Tata Consultancy Services (TCS), has cautioned investors regarding the growth prospects from the domestic market. TCS has recently witnessed good growth from the Indian market but the IT firm has stated that it remains cautious on the country. The management has claimed that despite the recent pick up in momentum in the economy, they were yet to witness broad based demand for IT services. In FY14, the share of revenues from India fell to 6.7% from 7.8% in FY13. This seems unlikely to pick up in the near future. TCS is currently trading down 0.5%.
Telecom stocks are trading mixed today. While Mahanagar Telephone Nigam Limited (MTNL) is leading the gainers; Idea Cellular is leading the losers. As per a leading financial daily, Reliance Industries has increased its stake in its telecom arm Reliance Jio Infocomm Ltd (RJIL) to 98.9%, by infusing more capital into the company. RJIO had purchased Infotel Broadband from the promoters, after the company won a pan India 4G spectrum license in 2010. RJIO plans to roll out 4G services across the country either by year end or early next year based on the progress made by the company so far. The pan India deployment is expected to cost Reliance about Rs 700 bn and is being closely watched by incumbents Bharti Airtel Idea Cellular and Vodafone India.