Markets likely to gain ground on repo rate cut; spectrum auction begins today

Here are a few stocks you need to keep a tab on for today

Benchmark indices are likely to open firm, reacting to the 25 basis point (bps) cut in repo rate by the Reserve Bank of India (RBI). Besides boosting the overall sentiment, interest rate sensitive stocks such as automobiles, realty and banking stocks are likely to gain ground in trade today.

"The need to act outside the policy review cycle is prompted by two factors: First, while the next bi-monthly policy statement will be issued on April 7, 2015 the still weak state of certain sectors of the economy as well as the global trend towards easing suggests that any policy action should be anticipatory once sufficient data support the policy stance. Second, with the release of the agreement on the monetary policy framework, it is appropriate for the Reserve Bank to offer guidance on how it will implement the mandate," the RBI statement said.

The repo rate now stands at 7.5%. The central bank, however, has kept the cash reserve ratio (CRR) of scheduled banks unchanged at 4% of net demand and time liabilities (NDTL).

In other news, the government will kick- start its biggest ever spectrum auction today that is likely to see over Rs 82,000 crore flow into its coffers. The government plans to sell 380.75 MHz of spectrum in three bands - the premium 900 MHz band, 1800 MHz and 800 MHz, besides 5 Mhz in the 2100 Mhz band across 17 out of 22 telecom areas in the country. Read report here

GLOBAL MARKETS

An index of Asian shares and the dollar both edged down on Wednesday, as investors grew cautious ahead of central bank meetings and U.S. data later in the week.

MSCI's broadest index of Asia-Pacific shares outside Japan. Japan's Nikkei stock average fell 0.8 percent. On Wall Street overnight, U.S. stock indexes retreated from record highs hit earlier in the week.

STOCKS TO WATCH

Larsen & Toubro (L&T) has bagged orders worth Rs 2,215 crore across various business segments in the last two months.

Sun Pharmaceutical, India’s largest drug maker, will acquire the opiates business of GlaxoSmithKline (GSK) in Australia.

Bharti Realty, the real estate arm of Sunil Bharti Mittal-led Bharti Enterprises, is gearing up to enter the premium residential market in FY16. While the overall real estate sector in India has seen muted growth in recent years, high-end residential projects have been high in demand.

Swedish auto major, AB Volvo is selling part of its stake in Eicher Motors worth $300 million (Rs 1,857 crore) in the secondary market thus marking the exit of the foreign company from the Indian motorcycle maker.  As a result of Volvo's exit, Eicher Motors's shares fell in the stock markets by 3.78 per cent to Rs 15,891 a share on Tuesday.

State-run UCO Bank on Tuesday reduced interest rate on select bulk deposits by 11-52 basis points.

Steel PSU Rashtriya Ispat Nigam Ltd (RINL) has evinced interest to pick up equity in the ultra-mega steel project in Odisha originally proposed to be developed jointly by National Mineral Development Corporation (NMDC) and state run miner Odisha Mining Corporation (OMC).

Country's largest telecom service provider Bharti Airtel has announced a partnership with China Mobile under which the two companies will work towards the growth of the 4G long term evolution (LTE) ecosystem and evolving mobile technology standards. Both the firms will also work towards shaping up a joint strategy for procurement of devices that include Mifi, smart phones, data cards, LTE CPEs and USIM.