Sensex Trades Higher; IndusInd Bank & Tata Motors Top Gainers

Share markets in India are presently trading on a positive note. All sectoral indices are trading in green with stocks in the realty sector and auto sector witnessing maximum buying interest.

The BSE Sensex is trading up by 172 points (up 0.5%), while the NSE Nifty is trading up by 56 points (up 0.5%). The BSE Mid Cap index is trading up by 1.1% and the BSE Small Cap index is trading up by 0.9%.

The rupee is trading at Rs 71.51 against the US$.

In the news from the banking spaceBandhan bank is witnessing buying interest today. Shares of the bank climbed around 7% in early trade after the Reserve Bank of India (RBI) allowed the bank to open as many as 40 new branches, the first time since it put a restriction on the bank's branch opening spree three months back.

In September, the Reserve Bank of India had barred Bandhan Bank from opening new branches without its approval and had ordered it to freeze the MD's salary over its failure to meet shareholding rules.

The RBI took the decision as the bank was not able to bring down the shareholding of non-operative financial holding company to 40%, as required under the licensing condition.

According to RBI's new licensing guidelines, the bank's promoter, Bandhan Financial Holdings Ltd, has to reduce its stake from 82% to 40% within three years of commencing the business.

Thereafter, banks are required to reduce their shareholding to 20% and 15% within 10 years and 12 years, respectively. Bandhan Bank's deadline ended on 23 August.

At the time of writing, Bandhan Bank share price was trading up by 6.5%.

Moving on to the news from the pharma spaceSun pharma is witnessing selling pressure today as the markets regulator said that it is examining the whistleblower complaint against Dilip Shanghvi-led Sun Pharmaceutical Industries.

A whistleblower had last month approached markets regulator with a document alleging various irregularities by the company, its promoter Shanghvi and others.

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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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