Unabated selling activity in index heavyweights kept the benchmark indices in the negative territory during the previous two hours of trade. Barring stocks from the FMCG and telecom spaces, extensive selling is being witnessed across sectors particularly in stocks from the realty, oil & gas and metal sectors.
The BSE-Sensex is trading lower by around 110 points and the NSE-Nifty is down by around 40 points. Currently, the BSE-Midcap and BSE-Smallcap indices are trading marginally lower by 0.6% and 0.1% respectively. The Rupee is trading at 46.53 to the Dollar.
As per a leading business daily, like their private peers, Indian public sector banks (PSB) will be having a performance-linked pay for their employees from next fiscal onwards. Though negotiations are going on with the employee unions in this regard, it seems that the government has put its foot down to include 25%-30% performance based variable in the PSB salary structure. It may be noted that with overall wage inflation and recent implementation of the sixth pay commission, PSBs saw an increase in their employee cost. However their employee efficiency didn’t see a proportional improvement. We believe that having a performance based compensation structure will help PSBs ensure better employee efficiencies.
India’s largest IT-services exporter, TCS has completed the successful implementation of its new-generation foreign exchange trading system for People’s Bank of China. This critical system will provide an integrated trading platform across debt, money and derivative markets. This project is one of the most prestigious projects in the Asia-Pacific region. It is worth noting that TCS, which pioneered Indian IT industry’s entry into China in 2002, is gaining a strong foot-hold in the region. Its propriety core banking software, ‘BaNCS’ has been ranked China’s leading core-banking software by IDC for three years in a row. The company is utilising its experience with the West in fathoming one of the toughest technology markets. China with its unique dynamics and demographics brings a lot of opportunities for the Indian IT industry. The US$ 10 bn Chinese IT-services market holds a lot of potential for Indian IT which is aiming to de-risk its business from the western economies. IT majors like TCS and Wipro are trading in the positive, while Infosys is currently trading in the negative.