The BSE-Sensex is currently trading higher by about 115 points (up 0.41%), while the NSE-Nifty is up by about 36 points (up 0.43%). The stocks in the midcap and small cap space too have opened the day on a positive note, with BSE Mid Cap index and BSE Small Cap index up by 0.65 % and 0.55% respectively. The rupee was trading at Rs 61.69 to the dollar.
Banking (PSU) stocks have opened mainly in the green with Syndicate Bank and Punjab &Sind Bank leading the gains. As per a leading financial daily, with an aim to offer operational freedom to banks, the Reserve bank of India (RBI) is thinking of making the base rate norms more flexible. While computing base rate, banks will have the freedom to calculate cost of funds either on the basis of average cost of funds or on marginal cost of funds or any other methodology in vogue. However the methodology should be transparent and consistent. Further, the same should be made available for supervisory review as per the schedule. Currently, commercial banks do not maintain a fixed schedule for review of the base rate.
Telecom stocks have opened the day on a firm note led by Tata Teleservices, and Idea cellular. As per the financial daily, the Telecom Commission (TC) has rejected the recommendations of the Telecom Regulatory Authority of India (TRAI), on the base price of 2,100-MHz spectrum to be auctioned on February 25. The TC has approved the base price at Rs 3,705 crore for each MHz of 2,100-MHz spectrum. This price is 36 % higher than the price suggested by TRAI. Reportedly, the Union Cabinet is expected to meet this week and take a final call.