Mumbai, July 18: Shares of non-banking finance companies — Muthoot Finance and Manappuram Finance — ended with as much as 4 per cent gains today after the RBI released draft guidelines for the licensing of payment banks and small banks.
Muthoot Finance’s scrip ended 3.76 per cent higher at Rs 186.20 on the BSE after surging 8.8 per cent to Rs 195.40 in intra-day trade.
Shares of Manappuram Finance rose 3.30 per cent to settle at Rs 23.45. Intra-day, it had surged 5.72 per cent to Rs 24.
A week after the budget announcement, the RBI had yesterday issued draft guidelines for setting up “local feel” small banks, which will disburse small-ticket loans to farmers and businesses.
The central bank also issued draft guidelines to set up payment banks, which will cater to the marginalised sections of society, including migrant labourers, for collecting deposits and remitting funds.
The benchmark Sensex today washed out early losses to end 80 points up at 25641.56, helped by smart gains in IT stocks.
The market had initially showed weakness in line with the fall in Asian stocks on concerns over geopolitical tension after news that a Malaysian Airlines jet was shot down at the Ukraine-Russia border.
IT shares were in the limelight after TCS announced better-than-expected quarterly results late last evening.
Buying in banking and capital goods also aided the Sensex to rebound and end in the positive terrain.
The BSE 30-share barometer resumed stable and later moved down to a low of 25441.24 on weak Asian cues.
It afterwards recovered gradually and touched a high of 25713.40 before finishing at 25641.56, a net gain of 80.40 points, or 0.31 per cent. It had closed at 26100.08 on July 7.
The Nifty rose 23.45 points, or 0.31 per cent, to end at a two-week high of 7663.90.