After opening firm, the Indian Indices are trading above the dotted line in the morning session. All sectoral indices are trading in the green. The buying interest is the highest in Auto and Engineering stocks.
The BSE Sensex is trading up 40 points and the NSE-Nifty is trading up 16 points. The BSE Mid Cap index is trading up 0.9% and the BSE Small Cap index is trading up 1.2%. The Rupee is trading at 61.98 to the US Dollar.
Automobiles stocks are trading mixed today. While Ashok Leyland and Eicher Motors are trading firm, Maruti and Bajaj Auto are trading in the red. As per a leading business daily, the auto sector is combating the decade's worst slowdown as sales growth has delivered a sharp blow. This is mainly on account of the economic slowdown that led to individuals shying away from discretionary spending. The industry's sales volume has been hurt mostly in the urban markets. Industry is looking at various options to combat this, like maintaining flexibility in the production between domestic and export markets. They plan to make up for loss in sales on account slowdown in India with exports. Further, they are working on easier and more efficient manufacturing lines and engine plant designs to shift between petrol and diesel engines. The slowdown is evident in the recent sales numbers of major auto manufacturers. However India's leading four wheeler firm Maruti Suzuki has seen its sales grow by 20% in FY 13 due to improving demand from overseas markets as well as rural demand back home. The company plans to reach to about 1, 00,000 villages in FY 14.
Most telecom stocks are trading higher today. Tata Communications and Tata Teleservices are among the stocks leading the gainers. According to leading news daily, the telecom regulator TRAI has imposed financial penalties on nine mobile companies. They have been fined for failing to deliver quality service as per the standards that have been laid down for the industry. Among the companies fined was state-run BSNL which failed 13 quality service parameters. It was fined Rs 1.45 m. The others were, Aircel and Reliance Communications (Rs 1.25 m each), Idea Cellular (Rs 0.3 m), Bharti Airtel and Vodafone (Rs 0.2 m each) and Uninor (Rs 0.15 m). TRAI can impose such penalties if telcos fail to meet certain service quality parameters like frequency of call drops. They are assessed on a quarterly basis for the same.