India's services industry has shrunk for the second month in a row after demonetization, with a fall in orders. The contraction has been driven by the cash crunch across the country after the ban on old Rs. 500 and Rs. 1000 notes. The business expectations sub-index among service providers has fallen to a 12-month low, suggesting that these businesses expect the crunch to continue for some time. A composite index that looks at both manufacturing and services has fallen to a three year low. 

Tata Sons has nominated S. Padmanabhan, the additional director on the Tata Power board, as its Chairman. In its announcement, Tata Sons emphasized that it has the power to nominate the Chairman as long as the company has the word 'Tata' as part of its company name. S Padmanabhan is a Tata loyalist who has been with the company for over 33 years. 

Stock in spotlight: Ramco Systems is seeing high volumes and gain today on the news of the company signing a multi-million dollar contract with the Panasonic Group of companies in Malaysia.

Photo of the day: Military officers rehearse for the Republic Day parade in New Delhi. Chandan Khanna/AFP/Getty Images