Indian stock market indices traded weak over the last two hours of trade on the back of persistent selling across index heavyweights. All sectoral indices are trading in the negative except for IT and Realty stocks.
The BSE-Sensex is trading down by 90 points and NSE-Nifty is trading down by 37 points. However, both the BSE Mid Cap and BSE Small Cap indices are trading higher by 0.2% and 0.3% respectively. The rupee is trading at 48.87 to the US dollar.
Software stocks are trading firm led by Wipro and CMC Ltd. According to a leading financial daily, Tata Consultancy Services (TCS) has started construction of its first development centre in the Technopark campus at Thiruvananthapuram. A centre covering 1 m square feet is being set up on 26 acres of Special Economic Zone (SEZ) land. TCS is among the first entrants into this IT park. This move by Wipro is expected to encourage other IT majors to move into Technopark. This will create high paying jobs and will contribute towards exports of software services.
Banking stocks are trading weak. Canara Bank and Oriental Bank are the biggest losers. According to a leading financial daily, banks might have to restructure their loans in the wake of power sector facing difficult times. The crisis hit power companies are expected to default as a result of delayed power projects. It may be recollected here that the power sector till some time ago was a hot favourite with investors and lenders. Among the banks that have high exposure to the sector, ICICI Bank is the first. It has lent Rs 372 bn (5.9% of its total book) followed closely by State Bank Of India(SBI) which has given Rs 369 bn (2.5%) of its total book.