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Indian Indices continued to witness buying interest during the final hours of trading with the BSE-Sensex closing higher by 173 points, while the NSE-Nifty closed higher by 50 points. Mid caps and small caps too finished on a buoyant note. While the S&P BSE Midcap index closed higher by 0.4%, the S&P BSE Smallcap index closed the day with gains of 0.2%. Barring FMCG, major sectoral indices ended the day on a positive note. Gains were largely seen in telecom and oil and gas stocks. The rupee is trading at 66.75 against the US$.
Asian markets finished broadly higher today with shares in Japan leading the region. The Nikkei 225 was up 2.61%, while Hong Kong's Hang Seng was up 2.01% and China's Shanghai Composite was up 0.17%.European markets are trading higher today with shares in London leading the region. The FTSE 100 is up 0.60%, while France's CAC 40 is up 0.30% and Germany's DAX is up 0.30%.
As per a leading financial daily, the Supreme Court has ordered fresh testing of Nestle India's Maggi noodle samples at Mysore lab. Further, the apex court has also stayed on the National Consumer Disputes Redressal Commission's (NCDRC) order of testing the noodles at Chennai lab.
The matter pertains to the government's petition which has alleged that Nestle India indulged in unfair trade practices by false labelling of Maggi noodles. The court tagged Nestle's appeal against the NCDRC order with a plea filed by food regulator FSSAI against the Bombay High Court's (HC) verdict of lifting the ban on nine variants of the fast food asking the company to go for fresh tests. In a recent order, the NCDRC has sent 16 samples of Maggi noodles for further testing.
The company has challenged this order passed by the NCDRC in a fresh petition.
Nestle India Ltd is one the biggest players in FMCG segment in India. It has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments. The company's net profit during the third quarter slumped 60% to Rs 1.24 billion on a YoY basis. This was because the company was severely hit by absence of its popular brand Maggi noodles. Net sales fell 32.1% YoY to Rs 17.42 billion. In addition to loss of sales from the business disruption, net sales worth Rs 153 million were reversed during the quarter in relation to Maggi noodles stock being withdrawn from the market. Here is our detailed analysis of the results (subscription required).
Banking stocks ended the day on a positive note with ICICI Bank and Kotak Mahindra Bank witnessing buying interest. As per a statement by the finance ministry, banks have opened 19.2 crore accounts under the government's ambitious financial inclusion scheme of Jan Dhan Yojana with deposit of more than Rs 268 billion. The ministry regarding this said that RuPay cards have been issued to 165 million customers and that two lakh accounts are opened every day. However, the statement noted that zero balance accounts in PMJDY have declined from 76% in September 2014 to 36.5% in November 2015.
Furthermore, banks have disbursed Rs 459 billion as on November 2015 under the Pradhan Mantri Mudra Yojana (PMMY). The statement stated that this has benefited 66 lakh borrowers. The government has set a target of Rs 1.22 lakh crore for loans to be given by banks to promote new entrepreneurs under this scheme.
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