Auto Ancillaries are trading mixed today. Munjal Showa and SKF India are leading the gainers; while Fag Bearings and Bharat Forge are leading the losers. Bharat Forge's 2QFY14 performance was impacted by sluggish domestic demand. The company's total sales declined 2.6% YoY to Rs 84.5 bn. The decline in domestic sales (7.2% YoY) was a result of weak automotive demand and a significant drop in sale to industrial sectors in India. Operating profit rose by 7.4% YoY and operating margin improved by 2.5% YoY to 26.4% in 2QFY14 due to few cost-cutting measures adopted by the company. However, net profits declined by 6.3% YoY to Rs 964 m due to higher interest costs and lower other income. Bharat Forge is trading down by 2.5% today.
Most Information Technology (IT) stocks are trading lower today. HCL Tech and Tech Mahindra are among the stocks leading the losers. India's leading software firm, Tech Mahindra, has announced a strategic partnership with Etisalat, the leading telecom service provider in the United Arab Emirates (UAE). The partnership aims to deliver world class solutions to the enterprise customers of Etisalat which will enable them to focus on their core business. Tech Mahindra will work with Etisalat to provide these transformational services. In return, Tech Mahindra will get access to Etisalat's Intellectual Property (IP) to develop its own System Integration (SI) Platform. The partnership was formed in Dubai a few days ago during GITEX Technology Week which is the largest Telecom technology conference and exhibition in the Middle East and South Asia. The Telecom vertical contributes the largest proportion of revenues for Tech Mahindra (48% as on 1QFY14). Tech Mahindra is trading down 1.1% today.