The Nifty and the Sensex posted record gains in Wednesday’s session since November. Investors have welcomed the decision of quick appointment of RBI governor. Factors such as Asian markets trading higher and the ending of election uncertainty pushed the Indian market higher.
Companies and Markets
Companies & Markets
With the reins rpt reins of the RBI governorship passing to ex-bureaucrat Shaktikanta Das, former chief economic advisor Arvind Subramanian (in pic) on Wednesday said central bank autonomy is "sacred", which should not be compromised.
He said progress made on the steps taken by predecessor Urjit Patel to restore financial system integrity will be a key measure to assess institutional integrity.
BJP MP Subramanian Swamy has objected to the appointment of Shaktikanta Das as the new RBI governor for his “corrupt activities.” Swamy, who is an economist and lawyer, has reportedly written a letter to Prime Minister Narendra Modi alleging that Das worked closely in "corrupt activities" with P Chidambaram, his bete noire and senior Congress leader.
After showing reluctance over pricing issues, private general insurer Housing Development Finance Corporation (HDFC) Ergo has made a backdoor entry to the government’s flagship health scheme — Pradhan Mantri Jan Arogya Yojana (PMJAY) or Ayushman Bharat. Initially, HDFC Ergo was not ready to join the programme due to perceived under-pricing, which could have put additional financial burden on the company.
Huge selling by foreign portfolio investors (FPIs) was seen in the equity market after the shakeup at RBI and the setback to the BJP in state polls, giving observers an impression that foreign investors re-setting their India strategy.
FPIs sold off equity holdings worth Rs 3,742.86 crore in the last two trading sessions as the twin events, change of guard at RBI and state assembly elections verdict, have unfolded. They sold equities worth Rs 2,443.43 crore on Tuesday and Rs 1,299.43 crore on Wednesday.
Fitch Ratings on Wednesday said the abrupt resignation of Urjit Patel (in pic) as Reserve Bank Governor highlights the risks to RBI's policy priorities, and increased government influence on the central bank could undermine the efforts to address bad loan problems.
It further said full implications of Patel's exit will only become clearer once there is some indication of the RBI's policy approach under his replacement, Shaktikanta Das, an experienced government bureaucrat.
Passenger vehicle manufacturers across brands in India, including market leader Maruti Suzuki and Hyundai, have cut production sharply by 21 per cent to adjust to slowing demand. Maruti Suzuki and Hyundai command nearly 70 per cent of the market share in the world’s fifth and Asia’s third largest car market.
Yes Bank stock surged 5.30 per cent on Wednesday, gaining 12.5 per cent in the last two sessions, ahead of its Thursday board meeting. The stock closed at Rs 186.80 on the Bombay Stock Exchange while the benchmark Sensex rose 1.8 per cent to 35,779.07 points.
On November 21, Yes Bank had informed exchanges of board meeting on December 13 to consider appointment of a new chairman, two independent directors, and the CEO search panel’s recommendation on successor to managing director and chief executive Rana Kapoor.
The Securities and Exchange Board of India (Sebi) on Wednesday approved a slew of measures, including permitting mutual funds (MFs) to segregate distressed assets to safeguard investment returns and easing norms to kick-start startup listings.
Yes Bank shares gained more than 8 per cent ahead of the bank’s board meeting on Thursday to select the new MD & CEO to replace incumbent Rana Kapoor.
The bank’s shares were gaining right from opening trade and closed at the high point of the day, closing 7.29 per cent up at Rs 177.40 on the BSE and at Rs 177.85 on the NSE.
Yes Bank was the top traded stock on both the bourses with a combined turnover of Rs 1,620 crore.