After opening firm, the Indian Indices have well remained above the dotted line in the morning session. Apart from stocks in the metal sector, all other sectoral indices are trading in the green.
The BSE-Sensex is trading up 184 points. The NSE-Nifty is trading up 42 points. The BSE Mid Cap index is trading up 0.4% and the BSE Small Cap index is trading up 0.6%. The rupee is trading at 60.45 to the US dollar.
The Reserve Bank of India (RBI), has issued a circular stating that all domestic credit cards transactions must follow the two step additional verification process. Some domestic credit card transactions have so far avoided the additional verification using an overseas payments system. This allowed the final settlement to be done in a foreign bank and in many cases was not being settled in Indian rupees. The RBI has said that all such transactions will now have to be routed through a domestic bank and should be settled in rupees. All the banking and financial institutions operating in India, will have to comply with the new rules until October 31st 2014.
Sugar stocks are trading mixed today. While Oudh Sugar Mills is leading the gainers; Shree Renuka Sugars leading the losers. As per a leading financial daily, the government is considering giving flexibility to state governments to fix the PDS rate for sugar. After sugar prices were decontrolled in April 2013, the state governments were buying sugar from the open market for the public distribution system (PDS). This is currently sold at Rs 13.5 at ration shops. Due to the rise in the open market rate, state governments have been demanding flexibility in setting the PDS price. The government is now considering this demand. The impact on the sugar companies can be expected after some final policy is released by the government on this issue.