Local bourses after surging to their two month highs in the early morning session are now gyrating around that level. The Indian markets seem in no mood to relent and have buckled under pressure as investors extended their buying spree for sixth straight session with crude oil prices seemingly under control and the street inclined to believe that tensions in Middle East may be easing. Moreover, there are some good news trickling in from corporate India ahead of the earnings season which will kick off in mid-April. The fact that crude oil prices haven't gone up in the last few days and that prices of other commodities too seem to be correcting may be signaling investor's that the worst may be over thereby, prompting them to indulge in some serious buying. Further, data showing stepping up of buying by foreign funds has also underpinned sentiment. According to data released by the Securities and Exchange Board of India (SEBI), the FIIs on Monday were the net buyers in equities with gross buying of Rs 3329.90 crore against gross sell of Rs 1812.00 crore. On the global front, Asian shares were trading lower tracking overnight losses in the US markets, which fell on clouded corporate outlook ahead of earnings amidst continued uncertainty which crept in from abroad.
Back home, Sensex is calmly trading above its 19k mark, while Nifty too was comfortable above its 5700 level. The broader indices though were in green but were underperforming their larger peers. On the BSE sectoral front, stocks from TECk, Power and Auto counters added to the market enthusiasm, while, stocks from Realty counter were the only spoil sports. The overall market breadth on BSE was in the favour of declines which thrashed advances in the ratio of 1237:1035, while, 96 shares remained unchanged.
The BSE Sensex is currently trading at 19,073.62, up by 130.48 points or 0.69%. The index has touched a high of 19,116.25 and a low of 18,944.82 respectively. There were 24 stocks advancing against just 5 declines on the index, while 1 share remained unchanged.
The broader indices were trading in green; the BSE Mid cap and Small cap indices surged 0.34% and 0.33% respectively.
The top gaining sectoral indices on the BSE were, TECk up by 0.93%, Power up by 0.80%, Auto up by 0.70%, Metal up by 0.66% and IT up by 0.65%. While Realty down by 0.69% was the lone loser on the index.
The top gainers on the Sensex were Reliance Communication up by 2.90%, Hero Honda up by 2.80%, Bharti Airtel up by 2.42%, Tata Power up by 2.33% and Reliance Infra up by 1.78%.
On the flip side, DLF down by 1.24%, Jaiprakash Associates down by 0.96%, Tata Motors down by 0.31% and ITC down by 0.08% were the only losers on the index.
Meanwhile, the much awaited draft guidelines for giving new banking licenses would be released by the Reserve Bank of India (RBI) in the next few days itself, said the Indian government on Monday. The same will be put in public domain for comments and after taking into account the response of various stakeholders to the draft guidelines, final guidelines will be released.
"RBI has indicated that by the end of the month they will come out with draft guidelines," said the secretary in the department of economic affairs of the ministry of finance R Gopalan on Monday. The government had earlier in the General Budget for 2011-12 said that the central planned to issue guidelines for the grant of new banking licenses before the close of this financial year.
Union Finance Minister Pranab Mukherjee had in FY11's Budget announced that the Reserve Bank would consider giving traditional banking licenses to private sector players in order to increase the penetration of banking services in the country. Since then, granting new banking licenses has been part of the debate on how to best approach the financial inclusion which is a key agenda for the UPA-II government.
The RBI had earlier floated a discussion paper in August, 2010, on giving out new banking licenses to business houses and non-banking finance companies. It had then raised a number of issues in this context including who should get the license, what should be the threshold capital requirement, should the new banks have complete freedom in branching like existing Indian banks, and should the new banks have FDI ceiling at par with the current private sector banks etc. At present, the country has 26 public sector banks which include 19 nationalized banks, the State Bank of India and its seven subsidiaries; seven new private sector banks; 15 old private sector banks and 31 foreign banks. Besides there are a number of regional rural and local area banks as well as various cooperative banks. However, the commercial banks enjoy a lion's share in financial services. This is reason why the finance ministry is keen in expanding the reach of commercial banks rather than focusing on regional rural or cooperative banks.
The S&P CNX Nifty is currently trading at 5,719.75, higher by 32.50 points or 0.57%.The index has touched a high of 5,732.50 and a low of 5,680.70 respectively. There were 38 stocks advancing against 12 declines on the index.
The top gainers of the Nifty were Reliance Communication up by 2.94%, Sesa Goa up by 2.89%, Hero Honda up by 2.85%, Bharti Airtel up by 2.54% and Dr Reddy Lab up by 2.18%.
DLF down by 1.24%, JP Associates down by 1.02%, IDCF down by 1.00%, Ranbaxy down 0.84% and Tata Motors was down by 0.63%, were the major losers on the index.
Shanghai Composite was up by 0.32%, Hang Seng inched up 0.10%, KLSE Composite gained 0.11%, Seoul Composite added 0.47% and Taiwan Weighted was up by 0.26%.
On the flip side, Straits Times declined 0.02%, Nikkei 225 was down by 0.06% and Jakarta Composite lost 0.62%. 
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