Indian stock markets open in the green

Fri, 9 Jan 09:30 am

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   11:30 am   

   01:30 pm   

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The major Asian stock markets have opened the day in the green with stock markets in S.Korea (up 1.1%) and Hong Kong (up 1.1%) leading the gains. The Indian share markets have opened on positive note as well. All sectoral indices have opened in the green with the stocks in the metal and healthcare segment leading the gains.

The Sensex today is up by around 183 points (0.7%), while the NSE-Nifty is up by about 55 points (0.7%). The mid cap and small cap stocks have also opened in the green with BSE Mid Cap index and BSE Small Cap index up by 0.7% and 0.8% respectively. The rupee is currently trading at Rs 62.34 to the US dollar.

As per a leading financial daily, the market regulator Securities and Exchange Board of India (SEBI) has recently proposed e-IPO norms in order to boost fund raising from markets. Through this, the investors will be able to bid for shares through internet and eventually on mobiles. Also, already listed public sector undertakings (PSUs) will be provided a 'fast-track' route for share sales to meet the disinvestment targets. Under the 'fast-track' route, a listed company will not need to file any draft offer document for its FPO or rights issue and it can proceed with the fund-raising programme without necessarily getting 'observations' from SEBI. Under the new norms, SEBI has proposed to shorten the timeline for listing of shares within 2-3 days of the IPO, as against 12 days currently. The fast track route has been proposed for companies with public shareholding market valuation as low as Rs 2.5 bn, versus Rs 30 bn currently. Infact, as per SEBI, the public sector companies can use the fast track route even without complying to this minimum average market value limit, if they meet other conditions. SEBI has invited public comments until January 30, post which it would put in place final norms for e-IPO as also for fast-track issuances.

Mining stocks have opened in the green with Gujarat NRE Coke Ltd and Ashapura Minechem Ltd leading the gains. As per a leading financial daily, the Union cabinet has not approved the ordinance to amend the Mines and Minerals Development and Regulation Act (MMDRA) of 1957 in its meeting earlier this week. The ordinance aimed to put in place a regime to auction other minerals on the lines of coal. As per the media reports, some ministers have questioned the wisdom of using the ordinance option frequently. Following the caution that the route might be used excessively, the mining ordinance has been shelved.