After opening on a positive note, the Indian Indices continued to trade strongly in the morning session. All sectoral indices are trading in the green. The buying interest is the highest in capital goods and banking stocks.
Most Information Technology (IT) stocks are trading positive today. Tech Mahindra and Wipro are among the stocks leading the gainers. India's leading software company Tech Mahindra has announced a technology partnership with Perpetual Investment Solutions. Perpetual is one of Australia's leading financial services groups. The partnership will look to enhance the registry capabilities of Perpetual to support its pension and wealth management products. It would cover administrative as well as technology services. This is a significant partnership for Tech Mahindra as the company's presence in the Asia-Pacific region is not as strong as its larger peers. The potential size and duration of the partnership was not disclosed by the company. Tech Mahindra is trading up 1.6% today.
Automobile stocks are trading positive today. TVS Motors and Tata Motors are leading the gainers. Mahindra and Mahindra (M&M) declared its 2QFY14 results. The results have beaten market expectations. The company's standalone sales decreased by 8.7% YoY to Rs 88.1 bn this quarter. There was a decline of 15.9% YoY and 3.9% YoY in volumes and realization respectively in automotive segment. Although there was about 19% YoY volume growth in tractors segment which restricted the sales decline to a certain extent. Operating profit increased by 2% YoY led by better operating performance of both automotive and tractor segment. Other income increased by 11.7% YoY and interest expense rose by 31.2% YoY. Increase in other income and decline in tax rate from 25.8% in 2QFY13 to 20.6% in 2QFY14 led to net profit growth of 9.7% YoY to Rs 9.9bn. M&M is trading up by 2.5% today.