Heard on the street: Future Capital gains on buzz L&T Finance may buy stake

Shares of Future Capital ended 3.7% higher at 129.25 on Monday amid speculation L&T Finance Holdings is in talks to buy a stake in the company. Senior officials at both Future Capital and L&T Finance Holdings denied this.

"After our recent acquisitions, our third-tier managers have been getting several buyout proposals on a daily basis. There is no formal talk in this regard with anybody at the top management," said a senior L&T Finance official. L&T Finance recently acquired Fidelity's domestic asset management company.



US broking firm stocks up SKS Microfinance

A leading US-based brokerage has been accumulating shares of SKS Microfinance so far this month, market sources said. Hopes that the government may pass the Microfinance Bill in the upcoming Parliament session may have prompted the purchases, they said.

The government last year released the draft Micro Financial Sector Bill, which seeks to make it mandatory for all microfinance institutions to be registered with the Reserve Bank of India, making it the sector regulator.

The proposed micro finance Bill, if enacted, will be a positive for the stock, brokers said, as the move could raise entry barriers into the sector. SKS shares, which have fallen 1.5% since April 1, closed at 116.95 on Monday.

Contributed by Shailesh Menon & Rajesh Mascarenhas