After opening strongly in the green, the Indian indices have remained well above the dotted line during the morning session amid outperformance in banking stocks. Broad based buying interest is being witnessed. Apart from banks, engineering and auto stocks are leading the gainers.
The BSE-Sensex is trading up 317 points. The NSE-Nifty is trading up 102 points. The BSE Mid Cap index is trading up 1.4% and the BSE Small Cap index is trading up 0.9%. The rupee is trading at 61.97 to the US dollar.
Mining stocks are trading mixed today. Gujarat NRE Coke and MMTC are leading the list of gainers. As per a leading financial daily, Coal India will soon start mining in Mozambique. This is expected to increase supplies of coal in India where fuel shortage has become one of the biggest banes of power producers. The final phase of exploration in Coal India's A1 and A2 mining blocks, which are located at the Tete Province in Mozambique, is complete. The company is now in the process of sampling. It hopes to start mining at the block within 6 months to a year. Coal India was trading down 0.3% at the time of writing.
Telecom stocks are trading mixed today. While Mahanagar Telephone Nigam Ltd. (MTNL) is leading the gainers; Reliance Communications is leading the losers. The telecom regulator TRAI has proposed a 15% hike in the reserve price for CDMA spectrum auctions. TRAI has recommended a reserve price of Rs 31.04 bn per MHz. As recently as February this year, the regulator had recommended Rs 26.85 bn per MHz as the reserve price. It must be kept in mind that the last time CDMA auctions were held in Feb 2013, only one operator, Sistema Shyam Teleservices, had bid and won spectrum (in 8 circles). At that time the reserve price was 18 bn per MHz. The regulator carried out a fresh valuation exercise and has cited current mobile data trends and other factors for the hike. The CDMA spectrum (in the 800 MHz band) is set to be auctioned in Feb 2015 along with spectrum for GSM players.