Stocks in Focus on December 27: Banks, Insurance Companies to Kaveri Seeds; here are the 5 Newsmakers of the Day

The benchmark indices ended lower for the third consecutive session on Thursday, December 26, 2019. The market was dragged down by heavyweights like Reliance Industries, HDFC Bank, Larsen and Toubro and Bharti Airtel. However, there were some stocks, like ICRA, CARE, Cadila Healthcare to Insurance Companies, that came in news after the market was closed for trading purposes and can impact the indices when they will reopen on Friday, December 27, 2019. Here is a list of five such stock:

Banks in Focus: Following a review of liquidity and market situation, the Reserve Bank of India (RBI) on Thursday decided to conduct one more simultaneous purchase and sale of government securities under Open Market Operations (OMO) for Rs10,000 crores each on December 30, 2019 (Monday). Earlier on December 23, 2019, the central bank had conducted a similar OMO and purchased securities worth Rs 10,000 crore and sold worth Rs 6,825 crore.

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ICRA/CARE: SEBI, the market regulator, on Thursday slapped a penalty of Rs25 lakh each on the credit rating agencies CARE and ICRA. The penalty was imposed for violation of SEBI(Credit Rating Agencies) Regulations pertaining to assigning of rating to various non-convertible debentures (NCDs) of IL&FS. Sebi also said the default by IL&FS occurred due to lethargic indifference and needless procrastination and laxity of these rating agencies.

Cadila Healthcare: Zydus Cadila has started preliminary talks with PE investors to sell two of its divisions to raise around Rs1,200 crore. The two divisions to be sold include anti-infectives and gynaecology businesses. Zydus Cadila is a group company of listed drug-maker Cadila Healthcare. The raised money will be used to lower the debt and strengthen the balance sheet of the company.

Kaveri Seeds: The company on Thursday said, SEBI has approved its buyback plan of 28 lakh shares at Rs700 per share via a tender offer.  

Insurance Companies in focus: The Reserve Bank of India has asked banks, to cut their stakes in insurance companies to 30%. The order is an attempt to shield banks from risks arising out of their non-banking businesses. It also aims to steer focus on boosting credit growth in an economy that is slowing. The rules are likely to be announced in FY21.