Market indices trade positive owing to favourable global cues

Mumbai (Maharashtra): Market indices continued to trade positive on Monday afternoon, owing to favourable global cues, particularly from the Asian market.

The BSE's Sensex traded 207.43 points higher at 35,177.13, while Nifty inched 52.40 points higher to trade at 10,744.70.

HDFC Bank, TCS and Infosys were early gainers, while shares of Reliance Industries were down by one percent.

Furthermore, market indices responded favourably to the Reserve Bank of India's (RBI) recent notification facilitating simplification of external commercial borrowings. (ECB)

Meanwhile, the Indian rupee traded at Rs.66.78 against one US dollar.

The RBI on Friday evening issued a notification highlighting the simplification of ECB guidelines, thereby paving way for a fresh round of overseas borrowings.

The central bank made all-in-cost ceiling for ECBs uniform at 450 basis points over the benchmark London Interbank Offer Rate (LIBOR), thus eliminating different slabs for different maturities.

The RBI also facilitated an increase in the liability-to-equity ratio for ECB raised from direct foreign equity holder under the automatic route to 7:1, implying that for every rupee of equity, companies can now borrow seven rupees through ECBs.