Moneycontrol Bureau10:50 am Interview: In its biggest reform, Indian government banned Rs 500 and Rs 1000 notes. The attempt is to curb the black money menace and make the society a cashless one. But, the demonetization drive is having an impact on many sectors.
Just like others, Non-Banking Financial companies (NBFCs) are facing issues too.
In conversation with CNBC-TV18, Ramesh Iyer of M&M Finance, says that NBFCs will be under pressure for some more time.
He said at this time it is important to be close to the customers and not to take a knee-jerk reaction.
He also said there will be delays in payments and there will be a spill-over effect.
These are good times but difficult times, he said.10:40 am Joint venture: Future Group food and FMCG arm Future Consumer Ltd has formed a 50:50 joint venture with the UK's largest wholesaler, Booker Group, to expand and develop Booker India.
As part of the agreement, Future Consumer Limited (FCL) and Booker Group will invest jointly to scale up the network to service merchandising requirements of neighbourhood retailers pan India, a Future Group statement said.
Booker Group, which had entered India in 2009, has a network of six Cash & Carry stores in Maharashtra and Gujarat.
It currently operates out of four locations in Mumbai and one each in Pune and Surat, it added.10:30 am HDFC tanks 5%: Insurance regulator IRDAI posed reservations on the present form of amalgamation of Max India and HDFC Life into a single entity. The two companies, however, said they will clarify on the matter to the regulator.
The scheme of amalgamation proposes merging of insurance business in an agreement between Max Financial Services Ltd (MFSL), its subsidiary Max Life Insurance Company Ltd (MLIC), HDFC Standard Life Insurance Company Ltd (HDFC Life) and Max India.
HDFC Life and MLIC had filed an application seeking in-principle approval of Irdai for the proposed amalgamation scheme on September 21, 2016.
"Irdai has expressed reservations to accept the scheme of amalgamation in its current form. MLIC and HDFC Life believe that the scheme of arrangement as submitted to the Irdai is in compliance with all applicable laws and propose to represent and clarify the matter to Irdai," they said in separate filings to the exchanges.10:20 am Market Update: Benchmark as well as broader markets extended losses. The Sensex was down 410.46 points or 1.53 percent at 26408.36, and the Nifty down 148 points or 1.78 percent at 8148.30.BSE Midcap tanked 3.9 percent and Smallcap crashed 4.8 percent.Jewellery stocks like Titan, PC Jeweller, Gitanjali Gems, TBZ and Thangamayil Jewellery shed 7-21 percent.10:15 am FII View: Sakthi Siva of Credit Suisse says while foreign investors turned net sellers of Emerging Asia ex-China back in October, the pace has now accelerated.
While Taiwan and Korea accounted for two-thirds of last Friday's net foreign selling, she believes domestically driven markets on high price-to-book plus current account deficits are potentially more vulnerable. But this is still not yet capitulation, she says.
While such large foreign selling on a single day smacks of panic, she tends to use net foreign selling on a rolling 12-month basis as a sign of foreign investor capitulation.
However, this time around, net foreign buying in Emerging Asia ex China ex Malaysia is still running at 0.5 percent of market cap. Only Japan is associated with foreign investor capitulation, Siva says.Also read - See big rally 3 months on, whatever the earnings: Tata MF's Jain10:00 am Market Check: Equity benchmarks remained under pressure with the Sensex shedding 343.46 points or 1.28 percent to 26475.36, weighed by auto, infra, metals and telecom. HDFC was the leading contributor to index fall, down 4.5 percent.
The 50-share NSE Nifty plunged 114.80 points or 1.38 percent to 8181.50 while the broader markets underperformed benchmarks. The BSE Midcap and Smallcap indices were down around 3 percent each.
About 7 shares declined for every share rising on the exchange.
Nifty PSU Bank index bucked the trend, up 3.6 percent on getting huge deposits, especially after Prime Minister Narendra Modi banned Rs 500 and Rs 1,000 notes. Union Bank, SBI, Andhra Bank, Bank of India, Canara Bank, OBC and PNB gained around 3 percent.
Bank of Baroda surged more than 8 percent after stellar performance in Q2.
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