After opening on a weak note Indian markets continued to extend losses in the last two hours of trading session. Capital goods and Power indices have been shedding gains of past few day; while Auto and FMCG indices are seeing some buying interest.
BSE Sensex is trading down by 49 points and NSE-Nifty is trading down by 18 points. The BSE Mid Cap index is trading up by 0.07% and BSE Small Cap index is trading down by 0.22%. The Rupee is trading at 62.4 to the US Dollar.
Automobile stocks are trading mixed today. Eicher Motor and Tata Motors are leading the gainers. TVS Motors and Maharashtra Scooters are leading the losers. According to a leading business daily, Tata Motors has embarked upon a major cost-cutting plan. The company has been struggling with increasing losses in its domestic operations owing to slowdown in the economy. In order to cut its costs, the company is likely to freeze large hiring for time being. It will also cut down the number of suppliers. The company will also cut back on investment in subsidiaries and reduce travel costs. However, the cost-cutting plan may not affect the company's focus on new product developments. The company has plans to invest Rs 30bn towards product developments this fiscal. The cost-cutting measures could well be the step in the right direction as we had highlighted in our 2QFY14 earnings update that the outlook for the commercial vehicle (CV) industry remains bleak for the rest of the fiscal. Also, according to the Tata Motors management, it could be another 3-4 quarters before a significant recovery in the CV space and passenger vehicles front takes place. Tata Motors is trading 1.7% up today.
Most Software stocks are trading lower today. Wipro and Tech Mahindra are among the stocks leading the losses. According to a leading news daily, India's largest software firm Tata Consultancy Services (TCS) has announced a large deal win. The company has bagged a software deal from Keler Ltd. Keler is the central securities depository in the country of Hungary in Europe. TCS will deploy its proprietary financial services Intellectual Property (IP) solution, BaNCS, to upgrade Keler's technology infrastructure. TCS will also set up its trading and settlement facility. The financial details of the deal were not disclosed by the company. BaNCS is a product developed by TCS for the Banking, Financial Services and Insurance (BFSI) industries. TCS had been making forays into several countries in Europe to expand its presence in the continent. In 2QFY14 TCS derived 11.2% of its revenues from Europe. TCS is trading up 0.1% today.