Led by persistent selling in the index heavyweights Indian share markets continued to hover below the dotted line in the last two trading hours. Majority of the sectoral indices are trading negative with power, oil and gas and realty stocks leading the pack of losers. Pharma, auto and IT are among the handful of stocks trading in the green.
Majority of the FMCG stocks are trading in green with Godrej Consumer and Gillete among the major gainers. Only Hindustan Unilever and Archies are trading weak. As per a leading financial daily, FMCG companies are rushing in to cash on the rising demand for health foods. Reportedly, Marico will extend the Saffola brand to the muesli segment. The company had launched oats under the same brand in 2010. Even Glaxo SmithKline Consumer Healthcare, which had introduced Horlicks oats last year, is likely to further extend it to muesli over the next few months. Multinational company Kellogs and homegrown company Baggry's are the two major players present in the muesli market. German company Dr. Oetakars entered the segment last year with its Vitalis brand.
According to a leading financial daily, Reserve Bank of India (RBI) has made norms for loan securitisation by non-banking finance companies (NBFC's) more stringent to diversify risk and keep a check on unhealthy practices. According to the revised norms, NBFCs will be able to sell or securitise a loan only if three monthly installments have been paid by the borrower. The limit for loans between two and five years is six monthly instalments and above five years it is 12 monthly instalments. Additionally, NBFCs will have to mandatorily retain 5% of the outstanding amount for loan tenure of less than 2 years and 10% of the outstanding amount for loan tenure of over 2 years. RBI has also guided against re-securitization or bundling of assets with different risk profile. The NBFCs are required to implement the guidelines in two phases by October end. The move comes in the backdrop of similar guidelines for securitization of loans by banks.