Indian stock market indices recovered in the last two hours of trade but are still trading below the dotted line. All sectoral indices are trading in the red. Consumer Durable and Metal stocks witness maximum selling pressure.
Software stocks are trading weak with Tech Mahindra and Computer Manufacturing Company Ltd (CMC Ltd.) witnessing maximum selling pressure. As per a leading financial daily, Wipro is likely to sell data centers and other computer hardware assets of its US unit Infocrossing. Wipro had acquired the unit in August 2007 for around Rs 30 bn. The company has obtained initial offers from several US telecom firms for sale of five data centers. The data centers could be worth between US$ 300-400 m.
Energy stocks are trading in the red led by Essar Oil and Petronet LNG. As per a leading financial daily, the compressed natural gas (CNG) prices are expected to rise. Indraprastha Gas (IGL) is already mulling over a price hike of up to six or seven per cent (Rs 2 per kg) in the coming week. The price rise will be on account of higher share of the imported gas (RLNG) coupled with a depreciating rupee. This is expected to be the fifth and the biggest rise in CNG prices over the past year. Once IGL does this, other players like Mahanagar Gas in Mumbai and Adani Gas in Ahmedabad are expected to follow.