Asian stock markets are trading with moderate gains shunning the losses made by the Wall Street on Friday, last week. Although, Asian stocks started today's trading session on a back foot but gained investor optimism later on. This week is an important one as the Federal Reserve will be meeting for two days. Investors expect a decision over raising the interest rates as a part of an outcome of this two-day meeting. Japanese, Chinese, Hong Kong and Korean markets are trading the green with 0.2%, 1.4%, 0.4% and 0.2% respective gains while Taiwanese market is trading with moderate losses of 0.3%.
Indian markets have opened on a flattish note, however, the markets slipped in the red as selling pressure remained persistent. BSE Sensex declined 22 points while NSE-Nifty marginally down by 7 points. BSE Mid Cap and BSE Small Cap are trading flat as midcap indices have gained about 10 points and smallcap stocks have gained about 24 points. Banks and healthcare sector are trading with healthy gains.
Commodities remained volatile. Gold price per 10 grams increased nearly 1% and gold traded at Rs 25,900 levels while silver prices per kilogram increased 0.6% to Rs 35, 500 levels, up Rs 200. Crude oil prices tanked over 4% owing to international factors and investors' concern over raising interest rates. Moreover, international crude prices touched a 6 year low as US Dollar gained strength. The value of Indian currency declined 0.02% or 0.02 and is trading at Rs 62.95 levels.
Banking stocks are leading the market with modest gains. The previous month, government had announced its intent of infusing capital to the tune of Rs 112 billion. In an attempt to infuse capital SBI had planned to issue preferential shares whose value would be nearly Rs 29 billion. For this purpose, the value of each preferential share has been fixed at Rs 295.95. This value includes a premium of 15%. Shares of SBI have been trading with moderate gains of 0.4%.
Telecom companies have rallied despite the sell-off which hit markets last week. The spectrum bid crossed Rs 1 trillion mark. According to the department of telecom, nearly 87% of the total allocated spectrum has been auctioned for Rs 1.02 trillion. Robust bidding is being seen for 1800 Mhz, 900 Mhz and 800 Mhz bands. However, there was no bidding for 2100 MHZ for Mumbai, Delhi and Andhra Pradesh. According to a leading financial source, Haryana witnessed bidding for 1800 Mhz and 900 Mhz for West Bengal. After rallying, shares of Bharti Airtel faced some profit booking and fell over 1%.