Software stocks are trading in the green led by Mphasis Limited and Tata Consultancy Services (TCS). As per a leading financial daily, Infosys is likely to cut down its revenue guidance next month as business from US slows down. With 60% of its business in the US, the company is facing a tough time as US business clients defer spending and cringe at signing big deals. The company has been criticized by its clients for sticking with a rigid pricing policy when competitors have offered more flexible plans. The company has missed its revenue guidance in three of the past four quarters. Besides US corporate sentiments, the company's guidance is getting hurt due to longer-than-expected client shutdowns due to Hurricane Sandy and looming fiscal cliff.
Auto stocks are trading strong led by TVS Motors and Mahindra and Mahindra. According to a leading financial daily, Tata Motors is planning austerity measures to overcome slowdown in demand. The company is making efforts to tide over a market dip in demand for its key commercial vehicles business. The company has asked departments to reduce spend and to rationalise travel, stay and even curtail production operations and certain spends on product development. The company has also urged that employees should make better use of technology-enabled conference rather than face-to-face meetings. The measures are not restricted to Indian operations. Even international subsidiaries like Tata Motors Thailand are undertaking measures to cut down the cost.