After opening weak, the Indian Indices have remained below the dotted line during the morning session. IT and energy stocks are witnessing the maximum selling pressure. However, banking stocks are trading in the green.
The BSE-Sensex is trading down 72 points. The NSE-Nifty is trading down 12 points. The BSE Mid Cap index is trading down 0.1% and the BSE Small Cap index is trading down 0.2%. The rupee is trading at 62.70 to the US dollar.
Most telecom stocks are trading lower today. Reliance Communications and Tata Teleservices are leading the losers. As per a leading financial daily, the government is in the final stages of preparing the guidelines for the Feb 2015 spectrum auctions. The defense ministry has agreed to vacate 5 MHz of premium 3G spectrum in 17 circles (in the 2,100 MHz band) for the auctions. The additional 2G airwaves to be sold are the 900 MHz and 1,800 MHz GSM frequencies as well as the 800 MHz CDMA frequency. The final quantum of the spectrum on offer will be decided soon. The pricing for all the frequencies except for the 2,100 MHz, has already been worked out. The regulator TRAI is currently working on the pricing of the 2,100 MHz band. The government is keen to avoid a situation of aggressive overbidding at the auctions and is likely to sell the 2G and 3G airwaves simultaneously. The matter will go to the union cabinet for further approval.
Most software stocks are trading lower today. Tata Consultancy Services (TCS) and Tech Mahindra are leading the losers. India's largest software firm Tata Consultancy Services (TCS), has stated that revenue growth would be muted for the Dec 2014 quarter. The company expects US dollar revenues growth to come in at 1.5% QoQ. The December quarter is a seasonally weak quarter for Indian IT firms due to the holiday season in the western world. TCS expects the banking, financial services and insurance (BFSI), retail, manufacturing and hi-tech verticals to witness some negative impact. However, the company expects Europe to deliver higher growth than the company average. TCS was trading down 3.1% at the time of writing.