Sensex Ends 192 Points Higher; Energy And IT Stocks Witness Buying

Indian share markets traded on a positive note throughout the day and ended higher. Gains were seen in the energy sectorIT sector and oil & gas sector, while auto stocks and realty stocks witnessed selling pressure.

At the closing bell, the BSE Sensex stood higher by 192 points (up 0.5%) and the NSE Nifty closed higher by 55 points (up 0.5%). The BSE Mid Cap index ended the day down 0.6% and the BSE Small Cap index ended the day down by 0.7%.

Asian stock markets finished on a positive note. As of the most recent closing prices, the Hang Seng was up by 0.4% and the Shanghai Composite was up by 0.6%. The Nikkei 225 was up 0.3%.

The rupee was trading at 71.21 against the US$.

In the news from the banking spaceIDBI Bank share price was in focus today as the lender said that the Life Insurance Corporation (LIC) has completed an acquisition of 51% stake in the bank.

Note that in November, the Competition Commission cleared LIC's proposed acquisition of up to 51% stake in debt-laden IDBI Bank.

The above development would help the insurance behemoth to enter the banking space and would provide business synergies despite the IDBI Bank's stressed balance sheet.

In August, the government gave its nod for the LIC's proposed purchase of up to 51% stake in the bank.

With the deal, the insurer would have access to around 2,000 branches of the bank through which it can sell its products.

However, at Equitymaster, we believe this attempt to bail out the troubled IDBI Bank is a classic case of the state insurer buying toxic assets.

Ask an average Indian investor about the next best thing after safe bank deposits. I can bet they would tell you about LIC policies.

For generations, Indians have treasured LIC policies in their safe deposit lockers like their gold and fixed deposit receipts.

Therefore, Vivek Kaul, the Editor, Vivek Kaul's Diary, believes dumping IDBI Bank on to LIC, is definitely not an example of saaf niyat, as the country has been promised.

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Disclosure: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. ...

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