Despite a short trading week, the Stock markets performed extremely well and for the Sensex gaining 6% in 3 days. However, the Reserve Bank of India came up with two important announcements for the corporates.
It came up with the drafting guidelines required for licensing of new bank which has given opportunities for private players to enter into the banking sector. The Industrial Community needs to comment on this draft before 31st October and after that the final guidelines would be issued. Some players likely to enter are SREI Infrastructure, Future Capital and Bajaj Finsev.
For Non Banking Financial Companies (NBFC) the USHA Throat Committee report was released by RBI. The report gives few recommendations to strengthen the regulatory & supervisory framework for the lenders. If these recommendations are implemented it would affect the Profitability of NBFCs.There have been rounds from a long time to bring reforms in the pension sector. The parliament panel member suggested a 26% FDIin the pension sector.
To add to this the Indian GDP (Gross Domestic Product) for the 1st Quarter of 2011-12 came at 7.7% against fears of economic slowdown. The RBI has estimated a growth of 8% to 8.5% in FY 2011. Indian automakers had a mixed month of a sluggish growth in the passenger vehicles segment. Mahindra & Mahindra (M&M) outperformed but the dark horse Maruti Suzuki reported a decline for the 3rd month because of labour unrest at Manesar plant. However the two wheelers sales outperformed the market and there was a hike in prices of Bajaj Auto & TVS Motors.
Bell The Bull Says there can be some new changes seen in the Banking Sector with the new RBI rules