Local bourses have come off their high's despite
positive opening of the European markets as fears over the lack of any
substantive solutions to Europe's woes resurfaced, dwindling risk
appetite. The investor's are also trading little cautious ahead of
higher August inflation data scheduled to be released tomorrow, with the
possibility of another rate hike too weighing on sentiment. RBI is
expected to be delivering the last rate increase in its 18-month-long
tightening cycle before pausing on Friday as inflation pressures
continue to remain strong. India's wholesale price index (WPI) is
anticipated to be rising at an annual 9.6 per cent in August owing to
the rising food and fuel prices.
On the global front, U.S. stocks ended higher on Monday, bouncing back in late trading as hopes that Italy could get financial support from China tempered investors' worst fears over the euro zone's sovereign debt crisis. Meanwhile, Asian shares too have started showing some sign of weakness as Shanghai Composite and Taiwan Weighted trading lower in red. The US future indices, however, are still showing an uptick in the screen trade. Back home, on the BSE Sectoral front, stocks belonging from the Information Technology, Realty and TECk counters are doing the most to sustain the gains of the bourses. Sensex gaining over 150 points is trading above the 16600 level, while Nifty gaining over 50 points is trading over 5000 mark. The broader indices too have sustained gains in line with the larger peers. The overall market is in the favour of advances which have thumped declines in the ratio of 1768:774, while 106 shares remained unchanged.
The BSE Sensex is currently trading at 16,697.44, up by 195.70 points or 1.19%. The index has touched a high and low of 16,766.19 and 16,618.17 respectively. There were 25 stocks advancing against just 5 declines on the index.
The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices rose 1.19% and 0.98% respectively.
Buying was witnessed across the board. The top gaining sectoral indices on the BSE were, IT up by 2.31%, Realty up by 2.10%, TECk up by 1.88%, Power up by 1.56% and Bankex up by 1.42%.
The top gainers on the Sensex were Jaiprakash Associates up by 3.77%, DLF up by 2.79%, TCS up by 2.71%, Bajaj Auto up by 2.22% and Infosys up by 2.21%.
On the flip side, Tata Motors down by 1.98%, HUL down by 0.68% ONGC down by 0.67%, Hero Motocorp down by 0.65% and Sun Pharma down by 0.12% were the top losers on the Sensex.
Meanwhile, the Reserve Bank of India's expert committee on licensing of New Urban Co-Operative Banks (UCBs) headed by Y M Melegam suggested that the new entrants should be encouraged to open banks and branches in unbanked or inadequately banked areas.
"UCBs play a useful role and there is need for a greater presence of UCBs in unbanked districts and in centers having population less than 5 lakh. It is necessary to encourage new entrants to open banks and branches in States and Districts which are unbanked or inadequately banked. It is equally necessary to discourage new entrants from opening branches in Districts and population centers which are already adequately banked", the RBI expert committee said.
On the issue of the preference for the licenses, the RBI Panel said "The existing well managed co-operative credit societies meeting certain financial criteria like profits, capital adequacy, NPAs' proportion etc. should be given priority for granting licenses as urban co-operative banks particularly in unbanked or inadequately banked centers."
For the capital requirement of the New UCBs, the RBI expert committee recommended minimum paid up capital range from Rs 50 lakhs to Rs 5 crore depending on the area of operation. For the UBCs which wish to operate in more than one State after five years of successful operations, RBI committee suggested a minimum paid capital of Rs 5 crore.
On the issue of the organization structure of UCBs the panel suggested that there should be segregation of the ownership of the UCB as a co-operative society from its functioning as a bank. The new organization structure shall consist of a Board of Management in addition to the Board of Directors. The Board of Directors (BoD) would be elected in accordance with the provisions of the respective Co-Operative Societies Acts.
The BoD will establish a Board of Management (BoM), consisting of persons with professional skills, which shall be entrusted with the responsibility for the control and direction of the affairs of the bank assisted by a CEO who shall have the responsibility for the management of the bank, RBI panel said.
The panel also has recommended unfettered powers to RBI to control and regulate the functioning of the UCBs and of its BoM and CEO in the same ways as it controls and regulate the activities of BoD and CEO of commercial banks.
The Melegam panel also suggested that there should be two separate Umbrella Organizations viz. a national level organization which provides payments and settlement services and other services normally provided by central banks as also liquidity support to its members; and one or more organizations which provide the management, IT, training and other services which the UCB sector needThe S&P CNX Nifty is currently trading at 5,006.75, higher by 59.95 points or 1.21%. The index has touched a high and low of 5,030.15 and 4,976.35 respectively. There were 44 stocks advancing against just 6 declines on the index.
The top gainers of the Nifty were Cairn up by 4.91%, Reliance Capital up by 4.25%, Jaiprakash Associates up by 3.85%, Reliance Infra up by 3.56% and RCom up by 3.23%.
The European indices have got off to an optimistic start, CAC 40 gained 0.39% and FTSE 100 was up by 1.22%.
On the global front, U.S. stocks ended higher on Monday, bouncing back in late trading as hopes that Italy could get financial support from China tempered investors' worst fears over the euro zone's sovereign debt crisis. Meanwhile, Asian shares too have started showing some sign of weakness as Shanghai Composite and Taiwan Weighted trading lower in red. The US future indices, however, are still showing an uptick in the screen trade. Back home, on the BSE Sectoral front, stocks belonging from the Information Technology, Realty and TECk counters are doing the most to sustain the gains of the bourses. Sensex gaining over 150 points is trading above the 16600 level, while Nifty gaining over 50 points is trading over 5000 mark. The broader indices too have sustained gains in line with the larger peers. The overall market is in the favour of advances which have thumped declines in the ratio of 1768:774, while 106 shares remained unchanged.
The BSE Sensex is currently trading at 16,697.44, up by 195.70 points or 1.19%. The index has touched a high and low of 16,766.19 and 16,618.17 respectively. There were 25 stocks advancing against just 5 declines on the index.
The broader indices were trading in line with benchmarks; the BSE Mid cap and Small cap indices rose 1.19% and 0.98% respectively.
Buying was witnessed across the board. The top gaining sectoral indices on the BSE were, IT up by 2.31%, Realty up by 2.10%, TECk up by 1.88%, Power up by 1.56% and Bankex up by 1.42%.
The top gainers on the Sensex were Jaiprakash Associates up by 3.77%, DLF up by 2.79%, TCS up by 2.71%, Bajaj Auto up by 2.22% and Infosys up by 2.21%.
On the flip side, Tata Motors down by 1.98%, HUL down by 0.68% ONGC down by 0.67%, Hero Motocorp down by 0.65% and Sun Pharma down by 0.12% were the top losers on the Sensex.
Meanwhile, the Reserve Bank of India's expert committee on licensing of New Urban Co-Operative Banks (UCBs) headed by Y M Melegam suggested that the new entrants should be encouraged to open banks and branches in unbanked or inadequately banked areas.
"UCBs play a useful role and there is need for a greater presence of UCBs in unbanked districts and in centers having population less than 5 lakh. It is necessary to encourage new entrants to open banks and branches in States and Districts which are unbanked or inadequately banked. It is equally necessary to discourage new entrants from opening branches in Districts and population centers which are already adequately banked", the RBI expert committee said.
On the issue of the preference for the licenses, the RBI Panel said "The existing well managed co-operative credit societies meeting certain financial criteria like profits, capital adequacy, NPAs' proportion etc. should be given priority for granting licenses as urban co-operative banks particularly in unbanked or inadequately banked centers."
For the capital requirement of the New UCBs, the RBI expert committee recommended minimum paid up capital range from Rs 50 lakhs to Rs 5 crore depending on the area of operation. For the UBCs which wish to operate in more than one State after five years of successful operations, RBI committee suggested a minimum paid capital of Rs 5 crore.
On the issue of the organization structure of UCBs the panel suggested that there should be segregation of the ownership of the UCB as a co-operative society from its functioning as a bank. The new organization structure shall consist of a Board of Management in addition to the Board of Directors. The Board of Directors (BoD) would be elected in accordance with the provisions of the respective Co-Operative Societies Acts.
The BoD will establish a Board of Management (BoM), consisting of persons with professional skills, which shall be entrusted with the responsibility for the control and direction of the affairs of the bank assisted by a CEO who shall have the responsibility for the management of the bank, RBI panel said.
The panel also has recommended unfettered powers to RBI to control and regulate the functioning of the UCBs and of its BoM and CEO in the same ways as it controls and regulate the activities of BoD and CEO of commercial banks.
The Melegam panel also suggested that there should be two separate Umbrella Organizations viz. a national level organization which provides payments and settlement services and other services normally provided by central banks as also liquidity support to its members; and one or more organizations which provide the management, IT, training and other services which the UCB sector needThe S&P CNX Nifty is currently trading at 5,006.75, higher by 59.95 points or 1.21%. The index has touched a high and low of 5,030.15 and 4,976.35 respectively. There were 44 stocks advancing against just 6 declines on the index.
The top gainers of the Nifty were Cairn up by 4.91%, Reliance Capital up by 4.25%, Jaiprakash Associates up by 3.85%, Reliance Infra up by 3.56% and RCom up by 3.23%.
On
the flip side, Tata Motors down by 2.22%, HUL down by 0.88%, Hero
Motocorp down by 0.78%, ONGC down by 0.67%, and Sun Pharma down by 0.61%
were the top losers on the index.
Most of the Asian equity indices were trading in
the green; Jakarta Composite up by 0.09%, KLSE Composite was up by
0.29%, Nikkei 225 was up by 0.95% and Straits Times was up by 1.13%.On
the flip side, Shanghai Composite was down by 1.12% and Taiwan Weighted
was down by 2.88%. The European indices have got off to an optimistic start, CAC 40 gained 0.39% and FTSE 100 was up by 1.22%.
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