Sensex, Nifty volatile; Cipla, Maruti, HUL top gainers

Moneycontrol Bureau11:55 am Demonetisation: Post demonetisation India’s booming non-banking financial companies (NBFCs) space took a major blow as repayments made to them were usually in cash. The first week of demonetisation saw no repayment at all but collection gradually picked post November 9, said Samit Ghosh, CEO and MD of Ujjivan . In an interview with CNBC-TV18 he said the compant has been disbursing loan from whatever repayments they are receiving post the cash ban. On the RBI’s decision to relax loan repayment for banks and NBFCs, as they will get an additional 60 days to for recognizing certain loans as substandard, Ghosh said that this a positive circular in terms of provisioning but it should not be misinterpreted as a two month repayment holiday.11:30 am Interview: Eric Vas, President of Motorcycle Business at Bajaj Auto , said that post demonetisation there has been a significant decline in the sales of 2-wheelers. It was 50 percent in rural India and 25 percent in urban areas. More importantly, decline in enquiries was down 80 percent across the country, he said. However, in the last four days, we have seen a revival in enquiries, and they have gone up by 30 percent, he added. Vas says it will be difficult to predict what will happen in the long-term, but the increase in enquires does indicate some liquidity is coming back into the market, he said. He stressed how most customers who buy two-wheelers do cash downpayments. He sees a decline of 25 percent this November in sales on a year-on-year basis. However, this currency ban won’t affect its launches, he said.Don't miss: L&T Q2 net seen down 11%, disappointment on order inflow unlikely

The market is volatile but is still in green. The Sensex is up 101.77 points or 0.4 percent at 25866.91 and the Nifty is up 41.55 points or 0.5 percent at 7970.65. About 1181 shares have advanced, 932 shares declined, and 131 shares are unchanged.

Cipla, Maruti, HUL, Tata Steel and Hero MotoCorp are top gainers while BHEL, GAIL, L&T and M&M are losers in the Sensex.

Oil prices rose to their highest level since late October on Tuesday as the market priced in an expected output cut led by producer cartel OPEC, but analysts warned that a failure to agree a cut could lead to a depening supply glut by early 2017.

International Brent crude oil futures rose as high as USD 49.63 a barrel on Tuesday, up 1.5 percent from the last settlement and the highest since Oct. 31.