Banking on amendments - IIFL

The RBI maintained status quo on interest rates and the indices went into a brief tailspin. Later in the day the Banking Amendment Bill got approval in the Lok Sabha. The help from the Opposition came after the government dropped the controversial provisions relating to allowing banks to trade in futures and keeping the sector outside the purview of Competition Commission. This move could see RBI issuing Banking Licenses. The Lok Sabha also passed the revised Companies Bill.

The Banking Laws (Amendment) Bill, passed on Tuesday, brought about changes in three laws, giving the Reserve Bank of India more power to regulate banks, raising voting rights for investors in banks and allowing state-owned banks to raise capital through bonus and rights issues.

The market seemed to cheer the developments and the indices settled at higher levels. The positive mood could continue today as the Sensex and Nifty are poised to open higher. Banking stocks of course will remain in focus.

Source : Equity Bulls

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