The BSE Sensex continued to trade firm with a 200 point gain, while the NSE-Nifty gained by over 50 points. All the sector indices, apart from banks, continue to trade with strength. Banks witnessed a selling pressure as Reserve Bank of India held on to the rates against expectations of slashing the CRR. BSE Mid Cap and BSE Small Cap extended the rally started since the start of the week. While the smallcap stocks gained about 2%, midcap stocks gained 0.8%.
Commodities continue to trade in between small profits and losses. While gold is trading with moderate losses of 0.15% or Rs 39; silver is trading with marginal losses of 0.1% or Rs 22. Gold (per 10 grams) is trading at Rs 26,836 levels while silver is trading at Rs 37,665 levels. Crude oil prices extended their losses as geo-political situation over Yemen eased. Per barrel, the cost of crude oil per barrel declined 0.8% or Rs 28; is available at Rs 3,300 levels.
Real estate bill got thumbs ups with additional amendments implemented by the Union Government. Under the recent real estate bill, the developers of both residential and commercial sectors will have register themselves with a statutory body and also disclose all the details which include the layout, plan, schedule for development works and status of the project. All the submissions to the statutory body will be subject to approvals. On failure to register, the developers can fined up to 10% of the project cost and another 10% if the afore said rules mentioned by the Union Government is not met. To keep transparency in financials, the developers have to mandatorily deposit 50% of the money taken by buyers in a project within 15 days to a different bank account. Shares of HDIL touched a 52-week high on the clearing of the real estate bill by the Union Government.
Amidst today's rally, banks are the only sector which has faced selling pressure as RBI failed to meet investor expectations of slashing CRR rates. However, many banks have cut their base rates. Yesterday, banks like SBI and HDFC Bank cut their interest rates by 15 basis points (bps). ICICI bank, however, deducted its rates by 25 bps. This has been followed by <Axis Bank today. Axis bank has deducted their base rates by 20 bps from 10.15% per annum to 9.95% per annum. Shares of Axis Bank closed lower by about 1% in today's trade.