Consumer stocks have been badly bruised, as their outlook has dimmed due to the cash crunch created by the note ban. Shares of multiplex operators PVR and Inox are no exception. Since demonetisation, these two stocks have declined in double-digits. Analysts have cut the Q3 earnings estimates for these stocks. However, savvy investors think the worst could be priced in. “No doubt these companies have been impacted in the immediate term. However, the situation has improved, as customers are shifting to digital payments. Also, blockbuster releases such as Dangal, Raees and Kaabil will help them tide over this difficult time,” said an analyst.
Pavan Burugula
Banks may be hard hit by sundry costs
Since the ban on Rs 500 and Rs 1,000 notes, the Reserve Bank of India and the government’s presses are busy printing notes of various denominations to remonetise the economy. Banks, however, have no idea who will bear the huge cost of airlifting currencies and sending it across the country. “Given the emergency situation, no one is asking questions. But, the cost of shifting currency would run into hundreds of crores. If not compensated by the government, banks’ cost-to-income will take a serious hit,” says a senior executive with a leading bank.
Joydeep Ghosh
Truce by 50:50 formula?
The battle between the Securities and Exchange Board of India (Sebi) and its employees over the market regulator’s hiring policy has reached the courts. However, it looks like both parties are headed for a truce. During the arguments by both counsels, it appeared the two parties were inclined to agree with the idea of having an equal number of internal and external appointments for key Sebi positions. The court has reserved the order on the matter for pronouncement on January 27.
Shrimi Choudhary
