According to the ASCI, this is a huge jump in the first month of proactive monitoring as prior to the launch of NAMS there were only 177 complaints in whole of 2011-12
Self regulatory body Advertising Standard Council of India (ASCI) has identified 55 advertisements from the print and television medium making misleading, false and unsubstantiated claims. These ads were tracked by ASCI's newly launched National Advertising Monitoring Service (NAMS).
NAMS, is joint collaboration of ASCI and AdEx, a division of TAM Media Research, and was launched on 1 May 2012, with an aim to reduce misleading advertisements. Last month it tracked newly released 40 print ads and 12 television commercials from sectors such as auto, banking, financial services & insurance, FMCG (including food & beverages), consumer durables, educational institutions, health care products & services, telecom and real estate.
Alan Collaco, secretary general, ASCI told Moneylife that, "Majority of the identified advertisements belong to FMCG, education and health sectors. TAM tracks down the ads and sends the list to ASCI. Some of these ads also include where a complaint has already been addressed. These are then excluded. For the remaining, we are in the process of writing to the advertisers for their response."
The agreement between ASCI and TAM Media Research, AdEx India aims to identify ads that are in potential violation of Chapter 1 of ASCI code. These ads are tracked from more than 30 newspapers (all editions), contributing to over 80% of national newspaper readership and all TV channels across the country in all Indian languages. Ads which are potentially violating ASCI Code are forwarded to ASCI on a weekly basis. Further ASCI processes them as per its normal complaint procedure involving its Consumer Complaints Council (CCC) for adjudication.
According to the ASCI, this is a huge jump in the first month of proactive monitoring as prior to the launch of NAMS there were only 177 complaints in whole of 2011-12. This is as much as 31% of ads to be processed in just one month as compared to the ads process in the last 12 months.
I Venkat, chairman, ASCI, said, "We are enthused with the results shown by NAMS in the first month of the proactively monitoring of ads. Going by the initial results I am confident that NAMS will enhance the ad self-regulation redressal process manifold. We now expect to see significant reduction in ads making misleading, false or unsubstantiated claims in the future with start of NAMS and consumers in India will benefit immensely."
Stocks were rallying until the market was hit by an S&P warning report. Fact is, the S&P report was available since 8th June. It was used as an excuse by market players to book profits, thus ending the longest run of the markets since January
Indian stock markets, which were rallying till late afternoon today, used the Standard & Poor's (S&P) report in the afternoon trade, mostly to book profits. The BSE Sensex, which had gained 754 points in the last five straight sessions, opened higher in the morning and advanced 175 points to touch a day's high of 16,893.
However, citing a report from S&P which said slowing GDP growth and political roadblocks to economic policy-making are some worrying factors for India, market players started booking profits in the afternoon trade resulting in markets ending below its last closing.
Surprisingly, S&P's report titled “Will India Be The First BRIC Fallen Angel?” was there on the ratings agency's website since 8th June, and yet Indian market started losing its gaining streak only after the media release in the country. According to sources, the report was accessible only for paid subscribers of S&P. The subscription ranges from $100 to $500. However, it seems that not a single media house in India is subscribed to these reports; otherwise, they would have given a “breaking news” on 8th June itself. In any case, institutional investors subscribe to such reports and after all, they are the ones who move the market.
S&P’s latest warning came less than two months after it cut India's credit rating outlook to ‘negative’ from ‘stable’ due to the country's lower GDP growth prospects and the risk of erosion of its external liquidity and fiscal flexibility.
Earlier in the day finance minister Pranab Mukherjee said 2012-13 would be the turnaround year for the economy. Highlighting the positives in the economy, Mr Mukherjee said interest rate cycle has been reversed and there is growth in mining sector, turnaround in investment growth rate and there are predictions of normal monsoon, besides decline in crude oil prices. “All these factors should help in recovery of domestic growth momentum,” he said.
Coming back to the stock market, last week it closed with a gain of about 5%, its longest gaining spree since January this year. Last week the Sensex jumped 754 points to settle at 16,719 and the Nifty climbed 227 points at 5,068.
On Monday, the Sensex rose by over 164 points in the early trade on increased buying by funds and retail investors, supported by recovery in the rupee and a firming trend in Asian markets. The wide-based National Stock Exchange index Nifty moved up by 47 points or 0.93% to 5,115.40 in early trade.
Asian shares rose today after finance ministers of the Eurozone nations, in a emergency conference call last week, agreed to lend Spain up to 100 billion euros to stabilise its banks, relieving markets that had feared for the country's fiscal collapse.
Those who bought last week should book profits on the very first day of the week as there is a possibility that we might see a dip (till mid-week)
S&P Nifty close: 5068
Short Term: Up Medium Term: Down Long Term: Down
The Nifty opened sharply lower as expected and marginally breached the low of 4,788 points (as envisaged last week) where the shorts got trapped. The Nifty briefly dipped below the R2 level of the week from where a counter attack by the bulls saw the Nifty recover smartly to engulf the entire last week’s candle, thus forming an “engulfing bullish line” pattern. This implies that a temporary bottom lasting for at least a couple of weeks more is in place The volumes were however almost the same as last week implying that this rise is also corrective in nature even though it could survive for a few weeks more. This week the Nifty closed almost at the high of the week, gaining a whopping 227 points (+4.68%).
The sectoral indices which outperformed were CNX PSU Bank (+7.76%), CNX Infra (+7.71%), CNX Realty (+7.26%), CNX Finance (+6.27%), CNX Media (+6.06%), CNX Auto (+5.50%) and CNX Energy (+4.92%) while the gross underperformers were CNX FMCG (+1.90%), CNX IT (+1.23%) and CNX Pharma (+0.92%). The weekly histogram MACD gained further last week but continues to be below the median line implying that rallies should be treated as corrective in nature.
Here are some key levels to watch out for this week
As long as the S&P Nifty stays above 4,974 points (pivot) the bulls need not worry. They should use 4,932 as a stop loss on longs.
Support levels in declines are pegged at 4,864 and 4,660 points.
Resistance levels on the upside are pegged at 5,178 and 5,288 points.
Those who bought last week as was advised by us should book profits on the very first day of the week as there is a possibility that we might see a dip (till mid-week). If this decline comes close to last Friday’s low or around the above-mentioned support level one can think of venturing long for another small rise as this overall recovery could last till the third weekend of this month. However the crucial resistance area during this time frame is pegged between 5,185-5,275 points where one should be looking for exiting opportunities only.
(Vidur Pendharkar works as a consultant technical analyst & chief strategist at www.trend4casting.com)