The Indian stock markets continued to trade higher led by sustained buying activity across index heavyweights, although trading was largely within a range during the last two hours of trade. Majority of the sectoral indices are trading on a positive note, barring a few like FMCG and healthcare stocks. The stocks from realty and metal sectors are leading the pack of gainers.
The BSE-Sensex is trading higher 89 points and the NSE-Nifty is trading higher 29 points. The BSE Mid Cap index is trading up by 0.8% and the BSE Small Cap index is trading up 0.7%. The rupee is trading at 60.49 to the US dollar.
Majority of the steel stocks are trading higher today. Steel Authority of India (SAIL) and Jindal Steel are leading among the stock of gainers. As per a leading business daily, steel major Tata Steel has sold its 25 acres land parcel located in the western suburbs of Mumbai for a sum of Rs 11.55 bn through e-auction. The company opted for real estate developer Oberoi Realty, which emerged as the highest bidder for the process of auction. The participant for the auction included various well known developers. Tata Steel had launched the process for sale during December last year. The proceeds would help the company to lower its debt burden as well as fund expansion. The stock of Tata Steel is trading up by 1.8%, while Oberoi Realty is trading up by as much as 12% today.
Finance stocks are trading higher today. Motilal Oswal and Srei Infrastructure are leading the pack of gainers, while JM Financial is trading lower. As per a leading business daily, the Election Commission (EC) is likely to give conditional nod to RBI's proposal to issue fresh bank licences today. Notably, with Lok Sabha election's model code of conduct in place, it is mandatory to seek EC's permission before announcing any major policy decisions. So RBI moved for EC's clearance after the poll dates were announced on March 5. The commission could either defer the decision or give the clearance with conditions. The condition could include barring the prospective licensees not to advertise in newspaper and preventing them from making donations to any political parties. Couple of non-banking finance firms who have applied, are awaiting their bank licences after the RBI's Bimal Jalan Committee scrutinized 25 applications and gave its recommendations by the end of February 2014. Therefore, all eyes are now on the RBI and the final list of applicants who would be allotted the bank licenses.