After opening on a positive note, Indian Indices continued the upward momentum in the last two hours of trading session. The rally is being led by Banks and capital goods indices.
BSE-Sensex is trading up by 352 points and NSE-Nifty is trading up by 99 points. The BSE Mid Cap index is trading up by 1.17% and BSE Small Cap index is trading up by 0.89%. The Rupee is trading at 62.6 to the US Dollar.
Banking PSU stocks are trading positive today. Indian Bank and Bank of India are leading the gainers. According to a leading business daily, State Bank of India (SBI) plans to raise Rs 50 bn through Tier-II bonds by FY14 end. This amount will be in addition to Rs 90bn; which the bank plans to raise through a qualified institutional placement (QIP). The QIP issue will also come by end of FY14. Post QIP, the government's stake in the bank will fall to 58% from 62% currently. The bank will also get funding of Rs 20 bn from the government during this fiscal. The bank aims to strengthen its asset base and also meet the new regulatory requirements on capital adequacy. SBI plans to expand its assets by 16-18 % this fiscal. However, SBI's 2QFY14 results have not been very encouraging. Its profitability has shrunk by almost 35.1% YoY in 2QFY14. Net NPAs (Non Performing Assets) increased from 2.4% in 2QFY13 to 2.9% in 2QFY14 marking continued asset quality pressures. SBI is trading 1.2% up today.
Most Information technology (IT) stocks are trading positive today. Wipro and Tech Mahindra are among the stocks leading the gainers. India's largest software firm Tata Consultancy Services (TCS) has inaugurated a large software development facility in Gujarat. The facility which will provide employment to 10,000 people is located in Garima Park in Gandhinagar city. This centre has been set up to help scale up the company's offshore delivery capabilities. It will be capable of providing IT services across all service lines of the company and would cater to clients from across the world including India. The centre would be connected in real-time with all other facilities of TCS around the world and will execute software projects across all industry verticals. It will also serve as a training centre for the company's employees. TCS is trading up 1.4% today.