10:00AM New York, 7:30PM Mumbai – Banks rallied on the possible abolition of licensing rules.

Stocks in India closed mixed on Monday with the Bombay Stock Exchange Sensex index gaining 0.6% or 126 at 20,812 in subdued trading.

In today’s trading on the BSE, 1,564 shares advanced, 1,346 slipped, and 24 remained unchanged. Of the stock in Sensex, 18 out of 30 shares from the Sensex index fell.

Turnover on the BSE was at 10,661 crore rupees while revenue on the NSE stood at 23,321 crore rupees. Reliance Natural Resources recorded the highest turnover of 651.35 crore rupees on BSE.

In the broader markets, Nifty advanced 0.08%. The 50-share index closed at 6,279 levels.

Selling pressures was visible in IT, healthcare and metal shares while buying in banking and real estate stocks was active.

Among the index shares, ICICI Bank, ITC Ltd, Reliance Communication, DLF, Reliance Industries and Hindustan Unilever were among the leading advancer. Each gaining more than 1%.

Of the National Stock Exchange-50 shares, Suzlon Energy, Siemens, Reliance Petroleum, Unitech Ltd and Sterlite Industries were among the leading gainers with gaining more than 1.1%.

Banks rallied in today’s trading but IT, healthcare, and metals stocks declined.

According to news reports, the mandatory licensing requirement for Indian banks to open branches may be done away with. The department of financial services is taking up the matter with the Reserve Bank of India.

ICICI Bank gained 6.1% to 1,363.9 rupees and State Bank of India gained 0.5% to 2,402.95 rupees.

The meeting of cabinet level ministers on January 17th is widely expected to recommend a revision on petrol and diesel prices after recent run-up in crude oil prices.

Of the BSE stocks, Reliance Industries rose 0.9% to 3,013 rupees.

Reliance Energy rose 1.3% to 2,542 rupees on news reports that Reliance Power, in which it holds 50% stake, is exploring possibilities of taking over government power projects. These include Ratnagiri Gas and Power plant at Dabhol, to scale up its generation capacity.

Infosys was down 3.2% to 1,640 rupees, Wipro shed 2.8% to 483 rupees, Tata Consultancy Services fell 2.9% to 976 rupees.

Ranbaxy Laboratories was down 1.3% to 420 rupees, Cipla fell 0.6% to 211.50 rupees and Dr. Reddy''s Laboratories slid 1.7% to 716 rupees.

Tata Steel shed 0.3% to 927.50 rupees, Steel Authority of India lost 1.2% to 271 rupees and Hindalco Industries lost 1.9% to 217.15 rupees. National Aluminium Company rose 2.6% to 532.1 rupees and Sterlite Industries gained 1.02% to 1,070.3 rupees.

Reliance Communications rose 3.95% to 790.05 rupees. ONGC declined 3.3% to 1,299.95 rupees.

Larsen & Toubro Ltd rose 0.8% to rupees 4,277.65 on securing two major contracts from Cairn India for the construction of civil works and the consolidated construction works of Cairn''s project in Rajasthan.