11:50 am Raghuram Rajan:
Quashing fears that the new kid on the block — payment banks — will pose a threat to universal banks, Reserve Bank of India chief Raghuram Rajan said they will not compete but act as feeder to their bigger peers.
The RBI on Wednesday gave in principle nod to 11 entities for setting up payment banks . In a conversation between Rajan and State Bank of India ( SBI ) chairperson Arundhati Bhattacharya, the former said payment banking is one of the most exciting space in the system which will reduce the cost of accessing banks. He also announced the possibility of issuing licences to smaller banks next month.
11:30 am Buzzing: Shares of Lupin surged 8 percent intraday as it got approval for key anti-cholesterol drug from US Foods and Drugs Administration (FDA). Lupin has received approval for Fenofibrate 160mg & 54mg tablet approval from Goa plant.
It alleviates concerns over Lupin’s Goa plant as the drug approval has come from that unit. Lupin’s Goa plant underwent US FDA audit and got a 483 with 9 observations. Lupin’s Goa unit makes formulations for supplies to US, EU and Japan.
Brokerage firm Citi says the US FDA approval of cholesterol drug Fenofibrate is positive as it is filed from its Goa plant and it vindicates management commentary that the observations received by the regulator in July are not disruptive.
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The market choppy and is in the red. The Nifty is below the 8,500 mark dragged lower by metal stocks but pharma stocks provide some support. The Sensex is down 7.53 points at 27924.11 and the Nifty is down 14.05 points or at 8481.10. About 952 shares have advanced, 1328 shares declined, and 91 shares are unchanged.
Lupin, Sun Pharma, ITC, HUL, Dr Reddy’s are top gainers in the Sensex. Among the losers are Vedanta, Infosys, Tata Steel, GAIL and ONGC.
The International Monetary Fund said it will freeze its benchmark currency basket until October 2016, giving markets more time to adjust to the possible addition of China’s yuan as part of a review of global reserve currencies.
The IMF board is scheduled to decide in November whether the yuan will join the Special Drawing Rights basket. Beijing loosened government controls on the yuan this month, allowing its value to fall sharply.
The IMF saw the policy shift as a step toward a freer exchange rate, potentially setting the stage for the yuan to become part of the SDR basket.