After opening positive, the Indian Indices are trading above the dotted line in the morning session. All sectoral indices except Banking are in the green. The buying interest is the highest in Pharma and Software stocks.
The BSE-Sensex is trading up 95 points and the NSE-Nifty is trading up 25 points. The BSE Mid Cap index is trading up 0.6% and the BSE Small Cap index is trading up 0.5%. The Rupee is trading at 61.95 to the US Dollar.
Most Software stocks are trading higher today. Tata Consultancy Services (TCS) and NIIT Technologies are among the stocks leading the gainers. According to a leading business daily, Tech Mahindra, is poised to end the dominance of global Software giant IBM, in the Indian Telecom outsourcing market. IBM derives about US$ 5 bn in revenues from the leading telcos in India. They are now looking to diversify their IT vendors and Tech Mahindra may pick up a sizeable chunk of the contracts when they come up for renewal. Bharti Airtel is said to be re-negotiating its 10 year old outsourcing contract with IBM. The potential opportunity for Tech Mahindra, which last year bought a 51% stake in the Bharti group-owned mobile application firm Comviva, could be in the range of US$ 50-100 m. Tech Mahindra is trading up 0.2% today.
Telecom stocks are trading positive today. Tata Communications and Reliance Communications are leading the gainers. The Cellular Operators Association of India (COAI) has released GSM subscriber data for November 2013. India's GSM subscriber base increased from 683.16 million in October 2013 to 688.02 million in November 2013. This is an increase of 4.87 million new subscribers or a rise of 0.71% for the month. India's largest telecom firm Bharti Airtel led the way with 196.60 million GSM users. It was followed by Vodafone India with 158.03 million customers. Idea cellular maintained its third position with 128.1 million customers. Bharti Airtel added 1.72 million GSM customers in the month, while Vodafone India and Idea Cellular added 1.34 and 0.04 million subscribers respectively. The respective market share for these top three firms stood at 28.6%, 23% and 18.7%.