Global markets turned negative as investors expressed concerns over comments by Iranian counterparts over producing nuclear warheads. The major Asian stock markets are trading mixed this morning. While the markets in Japan and Hong Kong are trading in the red with losses of 0.8% and 0.4%, respectively, the stocks markets in China and Taiwan are trading with gains of 0.1% and 0.3%, respectively on back of better than expected economic numbers from China. The rupee was trading at Rs 61.86 to the US dollar.
Crude oil price fell marginally by Rs 9 and is trading at Rs 3,140 per barrel while the precious metals, gold and silver, also are trading in the red with loss of 0.3% and 0.5% respectively. Gold price, per 10 grams, stands at Rs 26,435 while silver price stands at Rs 36,450 per kilogram
Indian stock markets touched record high levels as the RBI decided to slash the repo rates by 25 basis points. Both BSE Sensex and NSE-Nifty gained over 0.9%. BSE Mid Cap and BSE Small Cap indices have also shown marginal gains of 0.01% each. The Reserve Bank of India cut the repo rates by 25 basis points to 7.5% from previous rate of 7.75%. This is the second rate cut by the RBI since January. However, it has kept the Cash Reserve Ratio (CRR) unchanged at 4%. Stock of State Bank of India jumped nearly 4% post rate cut.
Mining stocks have opened on a mixed note with Ashapura Minechem and MMTC Ltd leading the gains. However, NMDC Ltd and Gujarat NRE Coke Ltd were facing selling pressure. The Government has passed the changes to Mines and Minerals Development Regulatory (MMDR) Bill. The Bill seeks to introduce a system of auction in granting prospecting licences. The intention behind passing the MMDR Bill was to ease the way business is done which involves land. As per this Bill the Central Government will become more authoritative than the State Government. This bill will likely benefit the companies which are already involved in mining.