United Spirits leads gainers in 'A' group

India Securities, Muthoot Finance, Manappuram Finance and Union Bank of India are among the other gainers. Liquor maker United Spirits rose 4.89% to Rs 586.45. The stock topped the gainers in the BSE's 'A' group. Some media reports today, 28 March 2012, suggested that Heineken may acquire controlling stake in United Breweries (UBL). According to reports, Heineken currently holds 37.5% stake in UBL. UB Group Chairman Vijay Mallya may reportedly sell between 12-13% stake held in UBL, which will allow Heineken' stake to reach 50%. As on 31 December 2011, United Spirit held 3.22% stake in UBL. India Securities rose 3.36% to Rs 58.45. The stock was second biggest gainer in 'A' group. Gold financing firm Muthoot Finance rose 2.97% to Rs 131.80. The stock was third biggest gainer in 'A' group. Shares of gold financing firms, Muthoot Finance and Manappuram Finance, jumped on bargain hunting after a recent steep slide triggered by the central bank tightening gold loan norms for non-banking financial companies. Shares of Muthoot Finance slumped 21.35% in the preceding four sessions to Rs 128 on 27 March 2012 from Rs 162.75 on 21 March 2012. The stock had underperformed the market over the past one month until 27 March 2012, falling 17.74% compared with the Sensex's 1.08% fall. The scrip had also underperformed the market in past one quarter, sliding 18.13% as against 8.71% rise in the Sensex. Another gold financing firm Manappuram Finance rose 2.50% to Rs 30.70. The stock was fourth biggest gainer in 'A' group. Shares of Manappuram Finance slumped 33.89% in the preceding four sessions to Rs 29.95 on 27 March 2012 from a recent high of Rs 45.30 on 21 March 2012. The stock had underperformed the market over the past one month until 27 March 2012, falling 28.52% compared with the Sensex's 1.08% fall. The scrip had also underperformed the market in past one quarter, falling 36.48% as against 8.71% rise in the Sensex. The Reserve Bank of India (RBI) after market hours on 21 March 2012, announced that all non-banking financial companies (NBFCs) that lend against gold collateral should maintain a loan-to-value ratio not exceeding 60% for loans granted against gold jewellery. Such NBFCs should not grant any advance against bullion/ primary gold and gold coins, the RBI said. The companies should also disclose in their balance sheet the percentage of such loans to their total assets. The prudential norms have been imposed considering the rapid growth of such firms and nature of their business model which has increased dependence on public finance, the RBI said in a notification. All NBFCs with such loans comprising 50% or more of their financial assets shall maintain a minimum tier-1 capital of 12% by 1 April 2014, the RBI said. Manappuram Finance and Muthoot Finance are some of the NBFCs that offer loans against gold in India. State-run Union Bank of India rose 2.47% to Rs 222.25. The stock was fifth biggest gainer in 'A' group.