Indian stock market indices traded in the negative during last two hours of trade due to heavy selling witnessed across sectors. All sectoral indices were trading weak led by capital goods
and consumer durables.
is trading down by 240 points and NSE-Nifty
is trading down by 78 points. BSE Mid Cap and BSE Small Capp indices are trading weak by 1.8% and 1.9% respectively. The rupee is trading at 54.21 to the US dollar.
Software stocks are mainly trading in the red led by Moser Baer India and Info Edge. As per a leading financial daily, Tech Mahindra is looking to expand its reach in the Middle East and Africa. This, the IT company wants to do by venturing into newer markets and industry verticals. It also wants to get into partnerships with key businesses in these regions to drive its revenues. With this aim in mind, Tech Mahindra is focusing on its leadership. In fact, it recently appointed Mr Girish Bhat as the new Vice- President of Sales and Operations for the Middle East and African region specifically.
Private sector banking stocks are trading weak today led by J&K Bank and Yes Bank. As per a leading financial daily, ICICI Bank may have to reduce its stake in Firstsource Solutions. This would follow the Reserve Bank of India (RBI) directive that restricts equity investments by banks in non-financial subsidiaries. Firstsource Solutions is a global business process outsourcing (BPO) firm in which ICICI Bank has about 18% stake. This will now have to be reduced to 10% to comply with RBI norms. As per the new norm, banks are allowed to have 10% of the capital of the investee company or 10% of its paid-up capital and reserves whichever is less. The banks have 3 months time in hand to inform RBI about their existing investments. With this RBI aims to ensure that banks are not excessively exposed to a particular business.