After opening in the green, the Indian Indices are trading well above the dotted line in the morning session. The buying interest is the highest in Metal and banking stocks. The selling pressure is highest in software stocks.
The BSE-Sensex is trading up 89 points and the NSE-Nifty is trading up 30 points. The BSE Mid Cap index is trading up 1.2% and the BSE Small Cap index is trading up 1.1%. The Rupee is trading at 61.97 to the US Dollar.
Software stocks are trading mixed today. HCL Tech and Wipro are among the stocks leading the gainers. Tech Mahindra and Infosys are among the stocks leading the losses. According to a leading news daily, the Indian IT sector is eyeing huge opportunities in new technologies like social media, mobility, analytics and cloud computing, collectively known as (SMAC). These technologies are expected to garner up to 89% of total IT spending growth in 2014 and up to a quarter of the total business by 2017. These interconnected new technologies currently contribute less than 5% of revenues for large IT firms like Tata Consultancy Services (TCS) but are growing at a rapid pace. It is expected to transform the business models of IT companies by reducing contract sizes and increasing the partnership between software firms and their clients. However, India's largest IT firm TCS said they would not give up on their existing business model and both the old and new technologies will run parallel to each other.
Most telecom stocks are trading higher today. Mahanagar Telephone Nigam Ltd (MTNL) and Tata Teleservices are among the stocks leading the gainers. According to a leading news daily, the telecom association of CDMA firms, the association of unified telecom service providers in India (AUSPI) has written to the government criticizing the decision to exclude the auction of the 800 MHz spectrum in the upcoming 2G auctions in January. It has suggested that since the telecom regulator TRAI has refused to work out a pricing formula for CDMA spectrum, the telecom ministry should do so. In the letter AUSPI has said that the CDMA firms like Reliance Communications and Tata Teleservices are dual technology operators and de-linking the GSM and CDMA spectrum in the 2G auctions would cause them 'irreparable harm'. The Union Cabinet had on December 9 had fixed the pan-India price for the 1,800 MHz (GSM) spectrum at Rs 17.65 bn per MHz per year.