After opening firm the Indian Indices are trading well above the dotted line in the morning session. The Reserve Bank of India's decision to hold key interest rates has certainly buoyed sentiment. All sectoral indices are trading in the green. The buying interest is the highest in Banking and Auto stocks.
The BSE Sensex is trading up 226 points and the NSE-Nifty is trading up 73 points. The BSE Mid Cap index is trading up 1% and the BSE Small Cap index is trading up 0.7%. The Rupee is trading at 61.89 to the US Dollar.
Software stocks are trading mixed today. Tata Consultancy Services (TCS) and HCL Tech are among the stocks leading the gainers; Tech Mahindra and Wipro are among the stocks leading the losses. India's second largest Software firm Infosys, has won a large software contract from a Chinese company. Infosys has been selected to develop a Human Resources (HR) platform, iSynergy, by FESCO. FESCO is a large Chinese corporation which provides HR services to over 10,000 customers across 100 countries. Infosys which has already built up a strong delivery center in China will develop an enterprise-wide HR platform which would enable FESCO to seamlessly deliver its existing services while scaling them up in the future. Infy currently derives about 5% of its revenues from the Asia-Pacific region. The financial details of the deal were not disclosed by the company. Infosys is trading up 0.2% today.
According to a leading financial news network, the government is considering drastic cuts in its budgeted expenditure to meet its fiscal deficit target. The finance ministry is considering cutting its planned expenditure by up to 19% to enable the government to meet the self-imposed deficit target of 4.8% of GDP for this financial year. The planned expenditure in the union budget was pegged at Rs 1100 bn. However tax collections have been tepid in the first half of the year. Moreover the government's disinvestment plan has faltered. While the original disinvestment target was Rs 540 bn, the expectations have now been reduced to about Rs 200 bn. Due to all these factors the finance ministry working on methods to cut back on several key programs to keep the fiscal deficit in check.