After opening in the green, the Indian indices have given up the early gains and are trading below the dotter line. Pharma and IT stocks are leading the gainers while consumer durables and capital goods stocks are trading in the red. Mid and small cap stocks are witnessing buying interest.
Most software stocks are trading higher today. Tech Mahindra and Infosys are leading the gainers. As per a leading financial daily, India's second largest software firm Infosys, has cracked down hard on a few employees of its BPO division for financial irregularities. The executives had over-invoiced one of the company's marquee clients Apple, in a European country. Infosys has terminated the services of the BPO division's CFO for not reporting the incident. The division's CEO has also stepped down taking moral responsibility. The employees involved have also been dismissed from service. The company has clarified that the amounts involved were insignificant. However, keeping with the highest levels of corporate governance at the firm, Infosys has begun taking punitive measures. The stock was trading up 0.6% at the time of writing.
As per a leading business daily, the government has offered exporters a refund of the duty they pay on imports as an incentive to boost exports. This comes on back of the fact that exports contracted during the month of October, more so for the first time in six months. The new drawback rates have been determined on certain broad average parameters including the prices of inputs, input output norms, share of imports in input consumption, the applied rates of central excise and customs duties on inputs used for exports etc. One may note that the duty drawback is a refund of duties on imported inputs for export items, and this furthering on incentives will prove as an incentive for all companies in the export sector.