After opening the day on the flat, Indian benchmark indices stayed muted as the session progressed but ended the day flat.

Benchmark equity indices ended Tuesday's trading session on a flat note.

At the closing bell, the BSE Sensex stood higher by 14 points.

Meanwhile, the NSE Nifty closed higher by 7 points.

HDFC Life, Bajaj Finserv, and Maruti Suzuki are among the top gainers today.

Titan, HUL, and Tata Motors, on the other hand, were among the top losers today.

The GIFT Nifty was trading at 25,004 down 67 points at the time of writing.

The BSE MidCap index ended 0.6% higher and the BSE SmallCap index ended 0.5% higher.

Sectoral indices were trading mixed with stocks in the metal sector and the FMCG sector witnessed selling pressure. Meanwhile, the stocks in the realty sector and telecom sector witnessing buying speer

Shares of Bajaj Auto, HDFC AMC, and Gillette India hit their respective 52-week highs today.

The rupee is trading at 83.93 against the US$.

Gold prices for the latest contract on MCX are trading 0.2% lower at Rs 71,882 per 10 grams.

Meanwhile, silver prices were trading 0.2% lower at Rs 85,481 per 1 kg.
 

Why Zee Entertainment Share Price is Rising

In news from the media sector, Zee Entertainment Enterprises' share price jumped as much as 15% today (27 August) after the media firm said it had entered into an agreement to settle all disputes with Sony regarding the termination of the merger.

As part of the settlement, the companies (Zee and Sony Pictures India) have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums.

Earlier, in January this year, Sony Pictures India terminated a proposed US$ 10 bn merger deal with Zee Entertainment, calling off a December 2021 agreement.

Sony also sought a US$ 90 m termination fee on account of alleged breaches by Zee Entertainment of the terms of the merger agreement.
 

CDSL Settles SEBI Allegations

Moving on to news from the depository sector, Central Depository Services Ltd (CDSL) has paid Rs 13 million (m) to settle allegations of violations of the market regulator's directions.

A settlement order issued by the Securities and Exchange Board of India (Sebi) on August 27 stated that a settlement amount of Rs 13 m was recommended by the regulator's High Powered Advisory Committee (HPAC) and was approved by the Panel of Whole-time Members.

A showcase notice dated 13 November 2023, had been issued to the depository.

Pending adjudication proceedings, CDSL applied to settle the matter without admitting or denying the findings of facts and conclusions of law. The application was dated 11 January 2024.

LIC Jumps 3%. Here's Why

Moving on to news from the insurance sector, shares of India's largest insurer Life Insurance Corporation of India jumped more than 3% to Rs 1,089 on 27 August as reports suggested that it has reached out to the Insurance Regulatory Development Authority of India (IRDAI) seeking review of surrender value regulations.

LIC is seeking an increase in the interest rate assumption used to calculate surrender values and is also suggesting using a plan-based Government Securities (G-Sec) benchmark for this calculation.

Using a government securities (G-Sec) benchmark in the calculation of surrender values for life insurance policies may ensure that the surrender values reflect the true economic cost and value of the policy. G-Sec yields typically reflect the current interest rate environment and economic conditions.

Earlier this year, the IRDAI introduced new regulations for the surrender value of life insurance policies.

Under these updated rules, insurance companies are now required to pay a special surrender value after policyholders have completed the full premium payment for the first year.

This marks a shift from previous regulations, which provided no surrender value in the first year and began payments only after two years of premium payments.

The new surrender value will be 75-80% of the premiums paid, which is a significant increase from the previous 30%. These new regulations will come into effect on 1 October 2024.

LIC, in its Q1FY25 investor conference call, had expressed confidence in managing the impact of the new surrender value norms.

The management had outlined plans to develop higher ticket-size products with lower surrender value behaviour to minimise any impact on margins.

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