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Today's Market: IT stocks lead the downfall - Indian Stock Market News
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IT stocks lead the downfall 
(Fri, 26 Apr 01:30 pm) 
 
Indian share markets recovered partially but continued to trade below the dotted line in the post-noon trading session. Barring auto and capital goods, all the sectoral indices are trading negative. IT, FMCG and oil and gas stocks are the major losers.

BSE-Sensex is down 46 points and NSE-Nifty is trading down 22 points. While BSE Mid Cap is down 0.4%, BSE Small Cap index is trading down by 0.3%. The rupee is trading at 54.2 to the US dollar.

Mining stocks are trading mixed with Coal India and Metals and Minerals Trading Corporation of India Ltd. (MMTC) being the major gainers whereas Manganse Ore India Limited (MOIL Limited) and National Mineral Development Corporation (NMDC) are trading in the red. Hindustan Zinc has announced its results for the quarter ended March 2013. The company's topline grew by 25% YoY led by 25% growth in zinc sales. Higher growth in output and better realizations in lead and zinc resulted in a 1.2% expansion in the operating margin during the quarter. At the net level, profits registered a 53% jump on the back of strong operating performance coupled with lower depreciation charges and significant fall in tax outgo. For FY13, revenues and profits were up by 11% and 25%, respectively. Hindustan Zinc stock is trading flat.

Most of the Telecom stocks are trading in green with Idea Cellular and Bharti Airtel leading among gainers. As per a leading financial daily, government-owned telecom service provider Bharat Sanchar Nigam Ltd (BSNL) has accused Bharti Airtel, Idea Cellular and Vodafone for forming a cartel in 2010 bidding auction for 3G spectrum. Reportedly Bharti Airtel, Vodafone and Idea are selling 3G services in circles where they do not directly hold licenses. These companies have entered into bilateral agreements called as 3G roaming agreements. Further, even the Department of Telecommunications (DoT) said that such agreements were in violation as per the license terms. DoT has also served notices on all the three companies and imposed fines on them. These companies approached the Supreme Court after a High Court verdict asked them to stop services in circles where they do not have licences. The Supreme Court hearing is scheduled for May 9. In a previous hearing, the Supreme Court had directed that Bharti Airtel cannot add any new 3G subscribers in the seven circles where it does not hold 3G spectrum.

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