Indian indices continued their upward journey during the previous two hours of trade backed by strong momentum in heavyweights from the IT, commodity and banking sectors.
Currently, the BSE-Sensex is trading up by around 303 points (1.6%), while the NSE-Nifty is up by about 97 points (1.6%). There has been some buying interest amongst the mid and small cap stocks as well with the BSE-Midcap and BSE-Smallcap indices trading higher by 0.7% and 0.9% respectively. The rupee is trading at 45.28 to the US dollar.
Telecom stocks are trading mixed with Bharti Airtel and Tata Communications trading higher while MTNL and Tata Teleservices are witnessing selling pressure. The much awaited Mobile Number Portability (MNP), is set to begin rollout on November 25 from Haryana which has eight cellular operators Airtel, Idea, BSNL, Aircel, Loop, Vodafone, Etisalat DB, and Videocon. In the discussion between DoT and operators, it is decided that all operators will do it at one go. According to figures from Cellular Operators Association of India, the circle has 11.68 m subscribers as on October 31, 2010. India's total cellular subscriber base stands at around 700 m. The result of MNP in Haryana may determine the pace at which the scheme will be rolled out in other circles.
Auto stocks are currently trading mixed with M&M, Ashok Leyland and TVS Motors trading weak, while Escorts, Tata Motors and Bajaj Auto are trading firm. Competition is set to intensify in the Indian auto space over the next few years. A leading business daily has reported that five global auto majors - Chrysler, Kia, Peugeot, Triumph and Scania - are looking at entering India and are believed to be chalking out their plans for the same. These global majors have products across different auto segments - two wheelers, passenger cars (compact and sedans), SUVs as well as commercial vehicles. India is currently the world's second fastest growing market globally. And if an Ernst & Young report is to be believed, then the country will be overtaking the likes of North America, China and Europe to become the world's fastest growing market in time to come. While this reiterates the interest of global auto players in India, this will only intensify competition in an already crowded market.