After opening strong, the Indian Indices are trading well above the dotted line in the morning session. All sectoral indices, except for the IT index, are trading in the green. The buying interest is the highest in Capital Goods and Banking stocks.
Most Software stocks are trading higher today. Tech Mahindra and HCL Tech are among the stocks leading the gainers. According to a leading financial daily, India's leading software companies Tata Consultancy Services (TCS) and Tech Mahindra are looking to expand their footprint in the Asia-Pacific region. Both firms are in a race to buy a large stake in the South Korean firm, KT Corporation's IT services arm. KT Corporation, formerly known as Korea Telecom, is a leading integrated telecommunications firm in South Korea. The company, which will be listing its IT services arm after the stake sale, is looking for a strategic partnership before taking the company public. KT Corp will be putting up 45% of its IT services arm on the block and both TCS and Tech Mahindra will submit their bids for the same within a few days. Neither TCS nor Tech Mahindra has a strong presence in the South-East Asian region. In 2QFY14, both firms derived less than 10% of their revenues from the Asia-Pacific region.
Power stocks are trading positive today. KSK Energy and GVK Power & Infra are leading the gainers. NTPC and Power Grid are leading the losers. According to a leading business daily, Tata Power has signed an Memorandum of Understanding (MOU) with the Ministry of Industry and Trade, Government of Vietnam for developing the 1,320 MW Long Phu 2 Power Project in Soc Trang Province of Vietnam. The company had been awarded the Long Phu 2 Power Project earlier this year. The MOU now has been signed to develop a thermal power plant, which will use imported coal. Tata Power is currently looking for a local partner in Vietnam for the project. The company is likely to keep 80% of the equity in the project.
Although this is Tata Power's first coal based project outside India; it is developing many other international power projects. It has signed an agreement with Clean Energy Invest AS (Clean Energy) and IFC InfraVentures (IFC) for developing a 400 MW hydro project in Georgia. This project is for sale of power primarily to Turkey. The company is also working on a 126 MW Dagachhu Hydro Project in Bhutan. In addition, it has several other international projects such as 95 MW Tsitsikamma and 134 MW Amakhala Emoyeni wind projects in South Africa; and a 240 MW Sorik Marapi Project in Indonesia. Tata Power is trading up by 1.3% today.