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Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
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Indian indices extend their gains 
(Tue, 10 Sep 11:30 am) 
 
After a good start, the Indian stock markets have extended their gains in the morning session. All sectors are trading in the green with the Banking and FMCG stocks leading the gainers.

The BSE Sensex is up 535 points and the NSE-Nifty is trading up 163 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 64.29 to the US Dollar.

Most of the IT stocks are trading higher today. Infosys and HCL Tech are among the top gainers. According to a leading business daily, India's second largest software company Infosys, is strengthening its infrastructure management services (IMS) division. This is a service line that has aided the industry's growth even during uncertain times. An improvement in IMS is expected to improve revenues from the Business IT Services (BITS) segment. BITS contributes 61% of revenues for Infosys. Soon after assuming charge as executive chairman in June, N R Narayana Murthy had acknowledged a lack of concentration in winning large deals in the BITS segment. This was largely due to a lack of focus towards the IMS space. The company has been unable to bag large deals in the IMS space earlier since it used to focus only remote infrastructure management. It did not provide end-to-end solutions. However this seems to be changing now as Infosys is developing its IMS capabilities and has managed to bag a few big deals. They include deals from Harley Davidson, Ricoh, India Post and BMW.

IMS contributed only 6.9% of revenues for Infosys in FY13. Other large IT companies derive anywhere between 15-25% of their revenues from IMS. Infosys is trading up 2.4% today.

All private banks are trading positive today. Yes Bank and Axis Bank are leading the gainers. Axis bank has rallied 6.5% today from its previous close after the Reserve Bank of India (RBI) lifted the ban on foreign investors buying into the Bank. The ban was lifted as there was a fall in foreign shareholdings in the bank below the prescribed limit of 49%; which is a threshold limit stipulated under the extant Foreign Direct Investment (FDI) Policy. RBI on August 16th, 2013 had banned further buying of shares in Axis Bank through stock exchanges in India by foreign Investors since the foreign shareholding limit of 49% had been crossed.

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