After opening in the red, the Indian Indices have bounced back strongly and are trading well above the dotted line during the morning session. Banking stocks leading the gainers while IT and pharma stocks are trading in the weak.
The BSE-Sensex is trading up 227 points. The NSE-Nifty is trading up 72 points. The BSE Mid Cap index is trading up 0.8% and the BSE Small Cap index is trading up 0.7%. The rupee is trading at 61.95 to the US dollar.
Engineering stocks are currently trading mixed with the gainers being led by Voltas and Alstom T&D. As per a leading business daily, the government yesterday approved a spending of Rs.430 bn to fund an initiative to supply electricity through separate feeders for agricultural and rural domestic consumption. It has done this with and the aim of providing 24 hour power supply to village households, which have hereto faced extremely erratic power supply. Further, the government has also approved spending Rs 326 bn on an integrated power development initiative. This will encompass strengthening the sub transmission and distribution systems. Among others, an industry which is bound to benefits is capital goods sector, especially those companies catering to the power and transmission and distribution space.
Most telecom stocks are trading higher today. Tata Communications and Mahanagar Telephone Nigam Ltd. (MTNL) are leading the gainers. As per a leading financial daily, the Department of Telecom (DoT) and the defense ministry have reached a partial understanding regarding the issue 3G spectrum held with the latter. The defense ministry has agreed to free up 5 MHz of pan India spectrum for the auctions. Once this is done the government will be able to auction 20 MHZ of 3G spectrum in 17 circles and 15 MHz in the remaining 5 circles. However, the decision to split the auctions into two parts will still cause intense bidding. The government will auction 2G spectrum in February 2015 while the 3G spectrum will be auctioned in May 2015.