Indian equity markets remain in green

Fri, 7 Jun 11:30 am

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Indian equity markets have remained in green during the previous two hours of trade. IT and realty sectors are leading the gains while FMCG and consumer durables are facing the maximum selling pressures.

The BSE-Sensex is up by 104 points and NSE-Nifty is up by 25 points. BSE Mid Cap index is up by 0.7% while BSE Small Cap index is up by 0.8%. The rupee is trading at 56.76 to the US dollar.

Automobiles shares are trading on a mixed note with Force Motors and Hero Motocorp leading the gains while Mah. Scooters and Maruti Suzuki are leading the losses. According to a leading financial daily, the country's largest car maker Maruti Suzuki, expects that petrol car sales to match diesel car sales with the lessening of price gap between petrol and diesel. The management is of the opinion that the diesel cars with the diesel option would come down from 70% to 40-50% with the narrowing of the price gap. In the backdrop of depressed market conditions resulting into poor sales and the fading demand for diesel cars unlike last year, the company expects a modest 5-6% growth in diesel car sales for the current fiscal. Subsequently, the inventory is expected to correct right in this month and therefore, the company will endeavour to match the production with demand. That said, the company is confident of the growth prospects given the large market size leaving sufficient room for every player to survive and grow despite the intense competition.

All Software (Large) shares except Patni are trading in green with Moser-Baer India and TCS leading the pack. According to a leading financial daily, TCS or Tata Consultancy Services has bagged a four-year deal from UK's Network Rail Infrastructure Ltd. Network Rail that runs, operates, maintains and invests in Britain's rail network is the owner and operator of Britain's railway infrastructure. Besides discussions on staffing-process with Finnish employees in place, TCS will also prove to be a catalyst in establishing a new-organisation model and supporting Network Rail in implementing a structured multi-sourcing model to invest in customer-centric IT strategy in a drive to bring transformational change across the organisation. With Network Rail as a reliable partner, TCS will work towards the objective of generating an outstanding value for taxpayers and users and continue to contribute towards railway improvement. While the financial details still remain under wraps, the deal size is expected to be worth £350 m. This initiative would prove quite instrumental to the TCS business prospects going ahead.