After opening on a weak note, the Indian Indices continued trading below the dotted line during this morning session. Capital goods stocks are leading the gainers while IT stocks are trading in the red. Mid and small cap stocks are witnessing buying interest.
In its monetary policy review today, the RBI has decided to keep key rates unchanged. While the repo rate remains unchanged at 8%, the cash reserve ratio too remains at the 4% level. The RBI has also mentioned that it will continue to provide liquidity under overnight repos at 0.25% and liquidity under 7 day and 14 day term repos of up to 0.75% through auctions. It will also continue with daily one day term repos and reverse repos in a bid to maintain smooth liquidity.
Telecom stocks are trading mixed today. While Reliance Communications is leading the gainers; Tata Teleservices is leading the losers. As per a leading financial daily, the defense ministry has sought CDMA spectrum from the department of telecom (DoT) for its communication purposes. The quantum of spectrum requested by the armed forces is expected to reduce the amount available for auctions to about 10 MHz per circle. The DoT has stated that the spectrum requested by the forces is not available as most of it has been earmarked for auctions. If the defense ministry were to stick to its demands it could become a bone of contention between CDMA players and the government.