After opening in red, the Indian Indices continued the downward trend in the last two hours of trading session. All indices except FMCG are trading in red.
The BSE Sensex is trading down by 122 points and NSE-Nifty is trading down by 32 points. The BSE Mid Cap index is trading down 0.05%; while the BSE Small Cap index is positive and trading up by about 0.11%. The Rupee is trading at 61.3 to the US Dollar.
Engineering stocks are trading mixed today. EMCO Ltd and Finolex Cables are among the stocks leading the gainers. Shanthi Gears and Crompton Greaves are leading the losers. According to a leading financial daily, Crompton Greaves is contemplating to either sell or shut its Canadian power transformer plant. This is because it wants to cut losses in its foreign business. The transformer factory in Canada contributes about 3% to the company's total sales. In FY13, it recorded a loss of US$10 mn. The Canadian facility currently has low capacity utilization levels. The revenues form the factory is approximately US$55 mn and in order to break even the company requires to achieve sales of about US$65-70 mn. In addition, the Canadian market is very competitive and therefore earning high margins is a difficult task. Crompton's Canada plant is a part of its subsidiary Pauwels; which the company acquired in 2005. Crompton Greaves is trading 2.4% down today.
Software stocks are trading mixed today. HCL Tech and Wipro are among the stocks leading the gainers; while Tata Consultancy services (TCS) and Tech Mahindra are among the stocks leading the losses. According to a leading financial daily, Tech Mahindra has opened a new global center for excellence. The center has been developed jointly by the company and Hewlett Packard (HP). The center which is located in Bangalore will mainly focus on application development and Infrastructure management services. The emphasis will be on automation and dynamic management of infrastructure solutions, in addition to improving productivity for clients. The company wants to move towards joint development of innovative solutions with its clients and this center would be a step in that direction. Tech Mahindra is trading down 0.4% today.