🍒 RBI likely to put its foot down, reinstate Gurbaxani at Dhanlaxmi Bank : The Reserve Bank of India (RBI) may reinstate Sunil Gurbaxani in the corner-room at Dhanlaxmi Bank and underscore the primacy of powers given to it under the Banking Regulation (BR) Act, 1949. The banking regulator is also said to be looking into the bank’s larger accounts to see if credit decisions were unduly influenced. “Gurbaxani’s removal from his post by shareholders is a test case. There is no precedent for the bank’s managing director (MD) and chief executive officer (CEO) being removed from his post in this manner. It’s only the RBI under the BR Act which has the powers to decide on their appointment and removal, and this will override the Companies Act,” said a source. Section 10BB of the BR Acts vests the central bank with the powers to appoint “the chairman of the board of directors on a whole-time basis or MD of a banking company”. This could be a technical reason why the central bank is yet to formally accept Gurbaxani’s resignation. - Business Standard
🍒 NCLT approves Rs 103 crore resolution plan for NIIL Infrastructures : The National Company Law Tribunal (NCLT) has approved a Rs 103-crore bid to acquire debt-ridden NIIL Infrastructures, which is developing a housing project in Agra, Uttar Pradesh. A two-member Principal bench of NCLT, headed by Acting President BSV Prakash Kumar, has approved the Rs 103.18 crore resolution plan by a consortium of Rishabh Verma and Shilendra Khirwar along with N-Homes.In March 2018, NCLT Delhi had admitted the application seeking resolution for NIIL Infrastructures under the Insolvency and Bankruptcy Code and appointed Nisha Malpani as the Resolution Professional (RP). In its order, NCLT has observed that the resolution plan provides no lay off for the workmen of the debt-laden company and for the full and final discharge of their dues for the period of 24 months preceding the insolvency commencement date. - moneycontrol.com
🍒 Will ask govt to make employers' contribution, tier-II account tax free for all in Budget: PFRDA : Pension fund regulator PFRDA will propose to the government to make employers'' contribution of 14 percent under NPS tax free for all categories of subscribers in the next Budget, Chairman Supratim Bandyopadhyay said. Employers'' contribution of 14 percent in pension under the National Pension System (NPS) scheme for the central government employees was made tax free from April 1, 2019. "We may propose things like 14 percent contribution by employers to be made tax free to all. Currently, it is given only to the central government employers. "So we are requesting the government to give it to all the employers, whether it is state governments or other corporate entities, so that subscribers across the board can get this benefit," Bandyopadhyay told PTI. - moneycontrol.
🍒 India rate cuts bets fall as recovery gains hold, inflation stays high : Negative real rates in India and recovering growth alongside high inflation suggest its central bank has little room for more monetary stimulus, but policy is likely to stay accommodative, economists and analysts said. Industrial production in September grew for the first time in six months while green shoots are also visible in rising goods and services tax collections, higher energy consumption, and an uptick in the purchasing managers' index among other gauges. With inflation staying above 7% in October for a second straight month, well above the RBI's medium term target of 4%, views that India is near the end of the current rate cutting cycle have become more pronounced. "The inflation rate has been consistently ahead of not only your target rate but the upper end of your target range as well. Ideally, you should be looking at rate hikes right now," said Sameer Narang, chief economist at Bank of Baroda. - Live Mint
🍒 Sales of ULIPs are likely to start picking up: Tarun Chugh : The life insurance sector, which has slowly been seeing a revival, should register growth from the fourth quarter this fiscal, believes Tarun Chugh, Managing Director and CEO, Bajaj Allianz Life Insurance. He added that with the stock markets now doing well, sales of ULIPs could also see an uptick. In an interview with BusinessLine, Chugh said that Covid-related claims have not been an issue for the life insurance industry as yet but noted that frauds could prove to be a concern. Replying to question to Life insurance sales now seem to be picking up. What is your outlook? - he said The first quarter was flat for us and negative for the industry; but from the second quarter, there has been an improvement month on month for the sector as well. Sales are coming back and we are seeing a positivity in the market and good uptake of all products. From the fourth quarter, there should be growth as well. For the sector, the third quarter is difficult to predict, but it should be flat if not register growth over last year. Guaranteed and term-life products will keep seeing an uptick. But with markets also now doing well, sales of ULIPs are also likely to start coming back. - Business Line
🍒 Gold imports dip 47% in April-October to $9.28 billion : Gold imports, which have a bearing on the current account deficit, declined 47.42 percent to USD 9.28 billion during April-October due to fall in demand in the wake of the COVID-19 pandemic, according to data from the Commerce Ministry. Imports of the yellow metal stood at USD 17.64 billion in the corresponding period of 2019-20. The imports, however, recorded a growth of about 36 percent in October. Silver imports during the period too dipped 64.65 percent to USD 742 million. - moneycontrol.com
🍒 Rupee likely to trade in 73.90-74.90 range next week, deploy theta depreciating based 'bear call spread' : United States Dollar/ Indian Rupee (USD/INR) traded with positive bias throughout the last trading week and appreciated by more than 60 paise on a week-on-week basis. The candle formed on November 9, 2020, with high upper and lower shadow generated demand at lower levels which was followed by three bullish candles in a row. The downward trend of the currency pair seems to be getting abated but the road for bulls still looks skeptical and the range-bound move can be expected in the coming trading sessions. The bullish crossover of short term and medium term moving averages are likely to provide a cushion to the prices at lower levels while the short term negative divergence and overhead resistance of 74.70 could abate the up move for time being. Apart from this, the declining trend line originated by joining the highs of April 21, 2020, and June 18, 2020, could act as a supply point at 74.90 per USD. The base for the short term is emerging at 73.90 per USD and traders can expect the currency pair to trade in the range of 73.90 to 74.90 per USD in the forthcoming truncated trading week.
🍒 M-cap of eight of top-10 most valued firms zooms Rs 1.90 lakh crore : The combined market valuation of eight of the top-10 most valued companies zoomed Rs 1,90,571.55 crore last week, with Bajaj Finance emerging as the biggest gainer, reflecting bullish investor sentiment. While Reliance Industries Ltd (RIL) and Tata Consultancy Services (TCS) witnessed erosion in their market capitalisation, rest of the eight companies including Hindustan Unilever Limited, HDFC, ICICI Bank and Bharti Airtel emerged as gainers. The market valuation of Bajaj Finance jumped Rs 35,878.56 crore to Rs 2,63,538.56 crore, becoming the biggest gainer among the top-10 most valued firms. HDFC Bank added Rs 34,077.46 crore to its market valuation, taking it to Rs 7,54,025.75 crore, while HDFC''s market capitalisation jumped Rs 31,989.44 crore to Rs 4,15,761.38 crore.
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