shares include banks, non-banking financial
companies (NBFC) and housing finance companies (HFC) were in focus, trading higher by up to 6% on the National Stock Exchange (NSE).
ICICI Bank, Bajaj Finance, Dewan Housing Finance (DHFL), GIC Housing Finance, Bajaj Finserv, LIC Housing Finance, Housing Development Finance Corporation (HDFC) and Repco Home Finance were up between 3%-6% on the NSE. Bank of Baroda, Union Bank of India, Manappuram Finance, Bharat Financial
Inclusion and Rural Electrification Corporation were up 2% each.
At 01:34 pm, Nifty Financial Services index, the largest gainer among sectoral indices was up 1.8% as compared to 1.1% rise in the Nifty 50 index. While, Nifty Bank and Nifty PSU Bank index were up 1.3% and 1%, respectively.
DHFL surged 6% to Rs 324 on the NSE in intra-day trade after the company reported a better-than-expected 29% year on year growth in net profit at Rs 233 crore for the second quarter ended September 30, 2016 (Q2FY17). Analysts on an average had expected profit of Rs 209 crore for the quarter.
ICICI Bank up 4% to Rs 269, extending its Monday’s 7% surge, after Essar Group agreed to sell its refinery unit to Rosneft PJSC, Russia’s biggest listed oil producer, and a consortium of Trafigura and United Capital Partners for about $13 billion.
Chanda Kochhar, MD & CEO, ICICI Bank, said, ICICI Bank has been closely working with various companies, including the Essar Group, to help them deleverage their stressed balance sheets. CLICK HERE TO READ FULL REPORT.
Moody’s Investors Service today said, the draft bill on resolution of financial firms is credit positive for banks as it is an important step to having a comprehensive framework in place for stressed financial firms.
After enacting a bankruptcy code for time-bound settlement of insolvency cases in non-financial firms, the finance ministry last month released a draft bill to set up a resolution corporation to address similar issues among financial firms.
"Currently, the resolution of financial firms in India is based on minor parts of legislation enacted for other purposes," says Srikanth Vadlamani, a Moody's Vice President and Senior Credit Officer.
"This bill is therefore a credit positive for Indian banks in terms of enhancing overall systemic stability."