Indian markets have firmed up their gains in mid morning session, supported by the upmoves in the IT, FMCG and technology stocks, though the rate sensitive's are still bleeding with realty pack suffering the most. The broader indices that have suffered a sharp cut in previous session, too are unable to make any strong recovery and are down by about half a percent. Though the heavy weights have taken the lead and and are comforting the markets.The auto sector has lost way after the Tata Motors reported a decline in its global sales, while the infra stocks are not showing any sign of recovery after falling in previous session.
The BSE Sensex is currently trading at 16,890.37, up by 159.43 points or 0.95%. The index has touched a high and low of 17,000.38 and 16,748.36 respectively. There were 23 stocks advancing against 7 declines on the index.
The broader indices were trading lower; the BSE Mid cap index declined by 0.37% and Small cap index was down 0.63%.
The top gaining sectoral indices on the BSE were, IT up by 2.22%, FMCG up by 1.60%, TECk up by 1.58%, Oil& Gas up by 1.40% and CD was up by 0.81%, while Realty down by 2.51%, Auto down by 1.27% and Bankex down 0.22% were the only losers.
The top gainers on the Sensex were HDFC up by 2.70%, TCS up by 2.70%, Wipro up by 2.66%, ONGC up by 2.42% and Sun Pharma up by 2.39%.
On the flip side, DLF was down by 4.10%,Tata Motors was down by 2.84% Maruti Suzuki was down by 2.32%, ICICI Bank down by 2.20% and M&M down by 1.36% were the top losers on the Sensex.
Meanwhile, the Reserve Bank of India (RBI) is expected to finalize its views on the limit of the Foreign Direct Investment (FDI) and the outlook for the dilution of promoter equity, making way for the introduction of draft rules on setting up new banks.
The Ministry of Finance and RBI have been negotiating for allowing industrial houses for promoting new banks, and other two issues on which RBI has to take final views i.e. whether to allow FDI of 74% and to finalize time line for diluting the equity of promoters. On the diluting of promoters share, RBI favours the lower limit of 49% in the first 10 years whereas finance ministry wants it to be around 74% which is already allowed in present norms. As per the government official this is because it reckons that an ongoing effort to nudge foreign banks to convert to a fully-owned subsidiary model would be defeated if higher foreign equity is allowed.
A clear road map for dilution of promoter equity may be in order because of the trouble the RBI has encountered in the past in forcing some of the dominant shareholders to cut their equity holdings. However, the shareholders were able to resist RBI saying that there were no formal rules on divesting of stake and the licensing agreement did not provide for it clearly.
Last week, ministry of finance asked RBI to give its view on many aspects of the proposed rules. The RBI is expected to communicate its views to the ministry of finance, after which the draft norms will be revealed maybe by next week. But the final banking license is expected to take much longer time, as policymakers want to ensure the Banking Regulation Act is amended to allow RBI to supersede the board of banks and to approve all transfers of share in the banks after a certain limit. Finance Minister Pranab Mukherjee in this year's budget had said that the RBI would release draft guidelines to license a few private banks.
Eight years ago RBI issued banking license to private banks, the last private bank to start its operation was YES bank, before that RBI had given permission to open banks to few industrial houses and the financial institution-backed firms. These include HDFC Bank, Axis Bank, Indus lnd Bank and IDBI bank, which later got merged with IDBI. As of now, India has 26 state-run banks, 22 private banks and 32 foreign banks.
The S&P CNX Nifty is currently trading at 5,076.40, higher by 38.95 points or 0.77%. The index has touched a high and low of 5,112.15 and 5,030.30 respectively. There were 36 stocks advancing against 14 declines on the index.
The top gainers of the Nifty were HDFC up by 3.10%, Wipro up by 2.67%, TCS up by 2.61%, Siemens up by 2.55% and Grasim was up by 2.38%.
On the flip side, DLF down by 4.05%, Tata motors down by 3.21%, ICICI Bank down by 2.48%, Maruti Suzuki down by 2.38% and RCom down by 2% were the major losers on the index.
The Asian equity indices were trading mixed; Hang Seng was up by 1.25%, KLSE Composite was up by 0.26%, Straits Times up by 0.69% and Seoul Composite was up by 0.89%.
The BSE Sensex is currently trading at 16,890.37, up by 159.43 points or 0.95%. The index has touched a high and low of 17,000.38 and 16,748.36 respectively. There were 23 stocks advancing against 7 declines on the index.
The broader indices were trading lower; the BSE Mid cap index declined by 0.37% and Small cap index was down 0.63%.
The top gaining sectoral indices on the BSE were, IT up by 2.22%, FMCG up by 1.60%, TECk up by 1.58%, Oil& Gas up by 1.40% and CD was up by 0.81%, while Realty down by 2.51%, Auto down by 1.27% and Bankex down 0.22% were the only losers.
The top gainers on the Sensex were HDFC up by 2.70%, TCS up by 2.70%, Wipro up by 2.66%, ONGC up by 2.42% and Sun Pharma up by 2.39%.
On the flip side, DLF was down by 4.10%,Tata Motors was down by 2.84% Maruti Suzuki was down by 2.32%, ICICI Bank down by 2.20% and M&M down by 1.36% were the top losers on the Sensex.
Meanwhile, the Reserve Bank of India (RBI) is expected to finalize its views on the limit of the Foreign Direct Investment (FDI) and the outlook for the dilution of promoter equity, making way for the introduction of draft rules on setting up new banks.
The Ministry of Finance and RBI have been negotiating for allowing industrial houses for promoting new banks, and other two issues on which RBI has to take final views i.e. whether to allow FDI of 74% and to finalize time line for diluting the equity of promoters. On the diluting of promoters share, RBI favours the lower limit of 49% in the first 10 years whereas finance ministry wants it to be around 74% which is already allowed in present norms. As per the government official this is because it reckons that an ongoing effort to nudge foreign banks to convert to a fully-owned subsidiary model would be defeated if higher foreign equity is allowed.
A clear road map for dilution of promoter equity may be in order because of the trouble the RBI has encountered in the past in forcing some of the dominant shareholders to cut their equity holdings. However, the shareholders were able to resist RBI saying that there were no formal rules on divesting of stake and the licensing agreement did not provide for it clearly.
Last week, ministry of finance asked RBI to give its view on many aspects of the proposed rules. The RBI is expected to communicate its views to the ministry of finance, after which the draft norms will be revealed maybe by next week. But the final banking license is expected to take much longer time, as policymakers want to ensure the Banking Regulation Act is amended to allow RBI to supersede the board of banks and to approve all transfers of share in the banks after a certain limit. Finance Minister Pranab Mukherjee in this year's budget had said that the RBI would release draft guidelines to license a few private banks.
Eight years ago RBI issued banking license to private banks, the last private bank to start its operation was YES bank, before that RBI had given permission to open banks to few industrial houses and the financial institution-backed firms. These include HDFC Bank, Axis Bank, Indus lnd Bank and IDBI bank, which later got merged with IDBI. As of now, India has 26 state-run banks, 22 private banks and 32 foreign banks.
The S&P CNX Nifty is currently trading at 5,076.40, higher by 38.95 points or 0.77%. The index has touched a high and low of 5,112.15 and 5,030.30 respectively. There were 36 stocks advancing against 14 declines on the index.
The top gainers of the Nifty were HDFC up by 3.10%, Wipro up by 2.67%, TCS up by 2.61%, Siemens up by 2.55% and Grasim was up by 2.38%.
On the flip side, DLF down by 4.05%, Tata motors down by 3.21%, ICICI Bank down by 2.48%, Maruti Suzuki down by 2.38% and RCom down by 2% were the major losers on the index.
The Asian equity indices were trading mixed; Hang Seng was up by 1.25%, KLSE Composite was up by 0.26%, Straits Times up by 0.69% and Seoul Composite was up by 0.89%.
On the flip side, Shanghai Composite down by 0.04%, Jakarta Composite was down by 0.17%, Nikkei 225 was down 0.49% and Taiwan Weighted down by 0.73% remained the losers among the Asian pack.
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