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The major Asian stock markets have opened the day on an encouraging note with stock markets in Hong Kong (up 2.1%) and China (up 1.4%) being the top gainers. Major stock indices in Europe and US ended their previous session in green. The rupee is trading at 66.16 per US dollar.
Indian stock markets have opened the day on a positive note too. BSE Sensex is trading higher by 78 points (up 0.3%) and NSE-Nifty is trading higher by 21 points (up 0.3%). Both BSE Mid Cap and BSE Small Cap have surged upwards and are trading higher by 0.4% and 0.6% respectively.
It has been few days since Nestle India's 'Maggi' is back on shelf. It seemed that the whole controversy was finally put to rest. However issues do not seem to end here. As per a leading financial daily, food safety regulator has appealed to the Supreme Court against Bombay High Court's order which lifted the ban on the 'Maggi' noodles. The Food Safety and Standards Authority of India (FSSAI) contended that the Bombay High Court's order was 'erroneous'.
FSSAI justified that the order was 'erroneous' by stating that the High Court had asked Nestle India to deliver the samples to be tested in these laboratories. However, instead a neutral authority should have been appointed to deliver the samples of Maggi noodles to be tested in these laboratories.
In response to this Nestle India stated that they have yet not been served a notice and are not aware of its content.
Nestle India recently declared its results for the quarter ended September 2015. The Maggi controversy continued to take a toll on Nestle's financial performance as it reported a revenue decline of 20% YoY; the domestic business fell by a third, while exports were down by 6% YoY. Please click here to view our detailed analysis of the results. (Subscription required)
As per a financial daily, ICICI Bank's board of directors has approved the sale of 6% stake in life insurance joint venture 'ICICI Prudential Life Insurance'. The value of the deal is pegged at Rs 19.5 bn. However the transaction is subject to government and regulatory approvals. Recently the bank announced the sale of 9% stake in its general insurance subsidiary 'ICICI Lombard General Insurance Company'.
Reportedly, the number of deals in the insurance sector has been on rise. Approx 18 such deals have taken place after the government raised the foreign investment limit to 49% from 26% in the insurance sector. The companies have managed to raise a sum of Rs 337.4 bn since foreign direct investment was allowed in the insurance sector.
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