After a positive start, the Indian stock markets continued to inch upwards in the last two hours of trade. Buying in IT and Banking sectors helped the market continue the upward momentum.
The BSE-Sensex is trading up 74 points and the NSE-Nifty is trading up 18 points. The BSE Mid Cap index is trading up by 0.9% and BSE Mid Cap index is trading up by 0.7%. The Rupee is trading at 61.2 to the US Dollar.
All PSU banks stocks are trading positive today. Indian Bank and UCO Bank are leading the gainers. As per a leading business daily, following other large PSU banks like SBI and others, Corporation Bank has also reduced interest rates on home, auto and consumer durables loans by up to 1.8% under its offer 'grand festival bonanza'. This is to take advantage of the upcoming festival season. The bank has slashed lending rate on home loans by 0.5%. The rates for auto loans have been reduced by 1%. The lending rate for consumer durables loans of up to Rs 5 lakh has been reduced by 1.8%. In addition, the rates have been reduced from 12.3% to 10.5% for kitchen and home appliances, solar panels and water heaters. Corporation bank is trading 3.7% up today.
Most IT stocks are trading higher today. Wipro and Tata Consultancy Services (TCS) are leading the gainers. According to a leading business daily, India's leading IT firms Wipro and HCL Tech are among the top contenders for a large contract from the Indian postal department. The contract, which is estimated to be about Rs 15 bn in value, is for supplying 130,000 handheld devices to employees in post offices across rural areas of the country. The Department of Post (DoP), as part of its modernisation drive, had floated this tender last month. The devices are required to be connected in 'real-time' with the core software system of the postal department. They are also required to have a bio-metric module to identify individuals having an Aadhar number, a solar power panel for charging in absence of electricity and a thermal printer for quickly printing a receipt for the customer.
Both companies have qualified in the technical bids and the final vendor will be decided by the end of the month. This would be a significant contract for both companies since they currently derive only about 5% of their revenue from India.