Most of the banking stocks are trading in the red with J&K Bank and Kotak Mahindra bank being among major losers. As per a leading financial daily, Reserve bank of India (RBI) has permitted banks to undertake insurance agency or broking business through a department or through a subsidiary. Under present bancassurance guidelines, a bank can act as a corporate agent and sell the policy of only one life insurer and non-life insurance company. The new guidelines will enable banks to act as broker and sell insurance policies of different insurance companies. The move is aimed at increasing the insurance penetration in the country by utilizing the network of bank branches.
Majority of the automobile stocks are trading positive led by Tube Investments and Force Motors. As per a leading financial daily, Tata Motors will be launching its Bolt compact car in 100 cities at the same time to capitalize on the popularity of new model and gain share in the highly competitive small car market. As per company, this strategy will help increase traffic in the showroom in a big way. The company had launched the Zest model in August 2014. Although the model launch helped the company to arrest sales decline but the company lost significant volumes due to long waiting periods. As per SIAM data, Tata Motors recorded sales growth for the second month in a row in December when offtake grew by 7% YOY to 13,599 units. Tata Motors stock is presently trading down by 1.2%.