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After opening the day flat, Indian Indices slipped into the negative territory during the post noon trading session. Sectoral indices are trading on a mixed note with stocks from the metal and IT witnessing buying interest while realty and consumer durables bearing the maximum brunt.
The BSE Sensex is trading lower by 24 points (down 0.1%) and the NSE Nifty is trading lower by 17 points (down 0.2%). The BSE Mid Cap index is trading lower by 0.6% while the BSE Small Cap index is trading lower by 0.7%. Gold prices, per 10 grams, are trading at Rs 31,293 levels. Silver price, per kilogram, is trading at Rs 48,019 levels. Crude oil is trading at Rs 3,109 per barrel. The rupee is trading at 67.17 to the US$.
As per an article in The Economic Times, government is likely to issue a nod to hike kerosene prices by Rs 0.25 a litre per month till April 2017.
Reportedly, if the move sees the light of the day, the upstream oil companies such as ONGC may get benefited immensely, the report stated. The government last hiked prices on July 1 for the first time in five years.
The under-recovery on kerosene stands at about Rs 13.1 per litre, of which the government subsidises Rs 12.
Consequently, inclusive of July increase of Rs 0.25, a monthly increase of similar amount would result in a saving of Rs 2.25 a litre for the current financial year alone. Moreover, the increase will benefit three government-controlled oil marketing companies Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.
The decision comes since the government is still not able to introduce direct benefit transfer in kerosene, the reports stated.
Moving on to the news from banking sector. According to a leading financial daily, IDFC Bank Ltd has signed a pact to acquire Grama Vidiyal Micro Finance Ltd to expand its services. The acquisition offers the bank access to Grama's 1.2 million households apart from adding its 319 points of presence in seven states.
This is for the first time a bank has acquired a microfinance company in India. Grama Vidiyal is headquartered in Tamil Nadu and has assets under management (AUM) of Rs 15 billion as of March 2016.
The bank said the Grama Vidiyal will be its wholly-owned subsidiary and will act as a dedicated business correspondent of IDFC Bank.
IDFC Bank plans to grow its rural and consumer banking loan book to 25% by March 2017. Whether IDFC Bank realizes its dream will be a key thing to watch out for going forward. Speaking about IDFC Bank's journey ahead, Madhu Gupta, Managing Editor of ResearchPro has written an interesting piece on this matter in one of the editions of ValuePro recently.
Subscribers can access IDFC Bank's latest result analysis (subscription required) on our website.
IDFC Bank Ltd was trading down by 2% while writing.
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