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The Indian Indices are currently trading on a flat note. Sectoral indices are trading mixed with stocks from the telecom and energy sectors leading the losses. Auto and consumer durables stocks are leading the gains.
The BSE-Sensex is trading up by 12 points (0.1%) and the NSE-Nifty is trading down by 3 points (0.04%). The BSE Mid Cap index is trading up by 0.3% while the BSE Small Cap is trading up by 0.7%. Gold prices, per 10 grams, are trading at Rs 24,985 levels. Silver price, per kilogram, is trading at Rs 33,600 levels. Crude oil is trading at Rs 2,798 per barrel. The rupee is trading at 66.75 to the US$.
Banking stocks are trading firm with IDBI Bank and Union Bank witnessing maximum buying interest. As per an article in Economic Times, the government is in talks with the International Finance Corp. for the disposal of a stake in state-run IDBI Bank. The government currently holds a 76.5% stake in the bank and is looking to lower this to 49%. As reported, the World Bank arm that invests in private sector is said to pick up a 15% holding.
The government, with plans to kick off strategic sales of public sector entities, has asked the finance ministry to conclude the IDBI deal by December. A panel has been set up to carry out strategic sales for the same.
The bank stake sale is primarily focused at making the bank more professional on the lines of private counterparts as was earlier seen in case of Axis Bank. The move will not face difficulties as unlike other state-run banks, IDBI Bank is governed by a separate legislation. The IDBI Act allows the government to lower its stake to 49%. In other state-run banks, the government has pledged to keep a majority 52% stake.
Lastly, going by the government's strategic sale plans, India wants to raise a record of Rs 695 billion this fiscal year from divestment. Of this, it has so far raised Rs 126 billion.
As per an economic daily, Nestle India has said that it has resumed production of Maggi noodles at all five facilities in India after production was started at its Tahliwal plant in Himachal Pradesh.
Earlier, last week, the food major has started production of Maggi noodles from its fourth plant at Pantnagar in Uttrakhand. The production was resumed on November 9 after a five-month ban. In June, FSSAI had banned Maggi noodles after finding lead content beyond permissible limits. Post that, the company took a hit of Rs 4.5 billion including the disposal of over 30,000 tonnes of Maggi packets.
As a result, the company reported 60% decline in its standalone net profit for the third quarter ended September 2015. Its net sales plummeted 32% during the period. However, the company since then is working to make up the lost ground. In our recent report, we have given our views on what one should expect from the company going further. If you are interested in the stock, you can read the report here.
Presently the stock of Nestle India is trading down by 1.4%.
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