The benchmark stock indices have bounced back with gains this morning after yesterday’s sharp fall.
Join us as we follow the top business news through the day.
Cabinet okays merger of LVB with DBS Bank India
The Cabinet on Wednesday gave the green light to the merger of troubled Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd. (DBIL), paving the way for lifting of restrictions placed on withdrawals from the bank.
Union Information and Broadcasting Minister Prakash Javadekar said that the merger would secure the interests of LVB’s depositors as well as protect the jobs of its employees.
“20 lakh depositors and ₹20,000 crore of deposits are secure. The Reserve Bank of India (RBI) has been told to act against those who brought the bank to the brink of closure,” the Minister said, briefing reporters after the Cabinet meeting chaired by Prime Minister Narendra Modi. “Liability will be fixed and those who have made mistakes will be punished,” he added.
LVB had been placed under moratorium on November 17 and withdrawals were restricted to ₹25,000 a month for each account holder, based on an application by the RBI to protect depositors’ interests. The central bank, in consultation with government, had also superseded LVB’s board and appointed an administrator.
Shares bounce as auto, drug stocks gain
A bounceback in the stock indices after yesterday’s sharp correction.
Reuters reports: “Indian shares rose on Thursday after a sharp drop in the last session, as drug and automotive stocks advanced against a backdrop of improving economic outlook for the year ahead.
The NSE Nifty 50 index was up 0.32% at 12,899.50 by 0400 GMT, while the S&P BSE Sensex was 0.33% higher at 43,973.27. Both indexes had hit record highs on Wednesday before settling more than 1.5% lower.
Construction group Larsen & Toubro and automaker Mahindra and Mahindra were among the top boosts to the Nifty 50. The Nifty pharmaceuticals index climbed 1% and was among the top sectoral gainers.
India’s economy is expected to recover early next year from recession, but at a modest pace, according to a majority of economists in a Reuters poll who said their upgraded growth predictions were based on the progress of COVID-19 vaccines.
Other Asian stock markets were also trading higher on vaccine optimism and prospects of more economic stimulus under the incoming Biden administration in the United States.”
NSE warned Future Retail of action in Amazon row
The National Stock Exchange (NSE) privately warned Future Retail it risked regulatory action for not making timely market disclosures about efforts by Amazon.com to block a disputed asset sale, according to e-mails reviewed by Reuters.
Previously unreported e-mails exchanged between the NSE and Future show the stock exchange repeatedly requested the company to submit more details of the arbitration order, seeking details of possible impact on financials, lenders and the Reliance deal.
On October 27, NSE asked Future why it had not disclosed the commencement of the arbitration proceedings and not shared the impact of the order. Future in response said it believed a disclosure wasn’t required.
NSE’s listing compliance division rejected that argument. It demanded a series of disclosures be made within hours, “failing which appropriate actions may be initiated”, the emails showed.