After opening positively, the Indian Indices are trading well above the dotted line in the morning session. All sectoral indices are in the green. The buying interest is highest in Metal and Banking stocks.
Most Software stocks are trading higher today. Tech Mahindra and Tata Consultancy Services (TCS) are among the stocks leading the gainers. According to leading financial daily, India's leading software Company, Tech Mahindra will hold a board meeting today to consider a merger of a group company with itself. The board is to consider merging Mahindra Engineering Services with Tech Mahindra. Mahindra Engineering Services which is subsidiary of Mahindra & Mahindra provides engineering services to the manufacturing and transportation industries. It is based in Pune and has a turnover of about Rs 2.5 bn. The merger would strengthen the Manufacturing and Engineering services division of Tech Mahindra. Its manufacturing vertical would get a boost as the proposed merger would give the company access to marquee global clients in the automobile sector. The manufacturing vertical contributed 19% of revenues for the company in 2QFY14. Tech Mahindra is trading up 0.5 % today.
Automobile stocks are trading positive today. Ashok Leyland and Maharashtra Scooters are leading the gainers. According to a leading business daily, Tata Motors is exploring various areas to tap the potential of its subsidiary- Jaguar-Land Rover (JLR). The company is contemplating developing joint products with JLR. The company is in the process of sharing same platform between Land Rover and Tata Motors for sports utility vehicles (SUV). Further, both may develop small engines for mutual use. Also, future areas of collaboration include derivatives built on a common Land Rover UV platform. It is believed that sharing of new generation compact platforms will benefit Tata Motors as it will allow the company to break away from the old style of manufacturing. Tata Motors earlier failed to add new UV vehicles when its rivals launched several new vehicles. As a result, the company lost out to Mahindra & Mahindra, which is now India's largest UV Manufacturer. Tata Motors is trading flat today.