BSE Sensex, Nifty headed down: Friday Closing Report

As suggested yesterday, a break of yesterday’s low triggered a sharp fall. The Nifty may see further downward below 5,645

The domestic market closed in the red for the second day on selling pressure in State Bank of India as the PSU bank saw an increase in its non-performing assets. Today the Nifty broke its 20-day moving average of 5,685 by hitting an intraday low of 5,678 and settled a little above it, at 5,686. The index may see further downward momentum if it closes below 5,645. The National Stock Exchange (NSE) saw a volume of 67.49 crore shares and an advance decline ratio of 571:1168.

The market opened soft tracking the weakness in the global markets. Overnight US stocks settled lower for the second day on concerns of the government’s ability to reduce its fiscal deficit. The Asian pack was also down in morning trade today on worries about the economic outlook.

Back home, the Nifty opened eight points lower at 5,731 and the Sensex resumed trade at 18,833, 13 points lower. The market was volatile since the opening bell with the benchmarks hovering on both sides of the previous closing levels.

Buying in select stock pushed the indices into the positive in early trade. The gains helped the benchmarks hit their highs in the first half hour wherein the Nifty rose to 5,752 and the Sensex stood at 18,894.

However, the gains were short-lived as selling in PSU banking stocks led the market into the negative terrain in late morning trade. State Bank of India, which declared its second quarter results, saw an increase in restructured loans and lower-than-expected net interest income.

There was no respite in the second half of trade as a weak opening of the key European indices and fresh revelations by social activist Arvind Kejriwal added to the gloom. The market dropped to its lows at around 1.30pm—as soon as Kejriwal began his address. At the lows the Nifty fell to 5,678 and the Sensex tumbled to 18,656.

The absence of any positive triggers—both domestic and global—resulted in the market settling near the lows and in the red for the second day. The Nifty closed 52 points (0.91%) lower at 5,686 and the Sensex declined 163 points (0.86%) to finish trade at 18,684.

Among the broader indices, the BSE Mid-cap index tanked 0.99% and the BSE Small-cap index declined 0.69%.

Today’s rout saw all sectoral indices settling lower. The top losers were BSE PSU (down 1.70%); BSE Realty (down 1.64%); BSE Metal (down 1.49%); BSE Oil & Gas (down 1.33%) and BSE Bankex (down 1.20%).

Four of the 30 stocks on the Sensex closed in the positive. The gainers were Bajaj Auto (up 0.36%); Maruti Suzuki (down 0.32%); Cipla (down 0.14%) and HDFC Bank (down 0.09%). The chief losers were State Bank of India (down 3.89%); Tata Steel (down 3.25%); ONGC (down 3.05%); Sterlite Industries (down 2.38%) and BHEL (down 2.135).

The top two A Group gainers on the BSE were—Mahindra & Mahindra Financial Services (up 6.70%) and Ashok Leyland (up 6.64%).
The top two A Group losers on the BSE were—Apollo Hospitals Enterprise (down 6.21%) and Aurobindo Pharma (down 4.62%).

The top two B Group gainers on the BSE were—Aqua Logistics (up 20%) and JK Agri Genetics (up 19.99%).
The top two B Group losers on the BSE were—Blue Chip India (up 15.58%) and Sujana Universal Industries (down 15.50%).

Out of the 50 stocks listed on the Nifty, seven stocks settled in the positive. The key gainers were Cairn India (up 1.01%); UltraTech Cement (up 0.71%); Power Grid Corporation (up 0.63%); Maruti Suzuki (up 0.27%) and Lupin (up 0.05%). The losers were led by SBI (down 3.98%); Tata Steel (down3.89%); ONGC (down 3.07%); IDFC (down 2.90%) and Sesa Goa (down 2.83%).

Markets across Asia settled mostly in the red for another day on worries of the slowdown in the US. A clutch of positive economic indicators from China failed to enthuse investors.

The Shanghai Composite fell 0.12%; the Hang Seng declined 0.85%; the Nikkei 225 dropped 0.90%; the Straits Times shed 0.09% and the Seoul Composite declined 0.52%. Among the gainers, the Jakarta Composite rose 0.13% and the Taiwan Weighted surged 0.70%. The KLSE Composite was flat with a positive bias.

At the time of writing, the key European markets down between 0.28% and 0.92% and the US stock futures were mixed.

Back home, institutional investors were net buyers in the equities segment on Thursday. Foreign institutional investors brought in funds amounting to Rs261.21 crore and domestic institutional investors pumped in Rs84.59 crore into stocks.

Power Finance Corp along with Tata Capital will set up a $1 billion private equity fund that would mainly focus on financing for domestic power projects. PFC would have 49% in the private equity fund and the remaining shareholding would be owned by Tata Capital. PFC settled 2.10% down at Rs186.05 on the NSE.

CESC on Friday said it has bagged a contract to distribute power in the Nigerian city of Port Harcourt. CESC, which has won the distribution franchisee bid as part of consortium of Nigerian partners and investment firms, would cover 48,000 sq km and expected an annual turnover of $180 million. CESC fell 0.16% to close at Rs274.65 on the NSE.

TTK Healthcare plans to invest about Rs 40 crore in the next couple of years in the region to set up new facilities to expand its food business. The company is vigorously pursuing activities to bring out new products as well as improvements existing products. The stock advanced 1.64% to settle at Rs410 on the NSE.


Centre playing with our order on 2G auction, Supreme Court

The apex court while pulling up the union government for restricting the sale of spectrum, sought an explanation for not putting on auction the entire radiowaves cancelled by it on 2nd February

New Delhi: The Supreme Court on Friday took strong exception to Union Government's decision of not putting on auction the entire 2G spectrum cancelled by it saying the Centre is "playing" with its order, reports PTI.
The apex court pulled up the Centre for restricting the sale of spectrum and sought an explanation for not putting on auction the entire radiowaves cancelled by it on 2nd February.
"We can tell you clearly that you are not implementing our order but prima facie playing with our order," the bench of justices GS Singhvi and KS Radhakrishanan said while asking the government to explain on next date of hearing on 19th November when the court will reopen after Diwali.
"You are required to put spectrum of all 22 service areas cancelled by us on auction," the bench said, adding, "We are very clear that in terms of our direction you have to undertake the exercise for grant of licences for 2G spectrum in all the 22 circles".
The bench wanted to know why the Centre has not informed it during the last ten months after its order was passed on 2nd February since the case has been taken up for hearing many times.
"We always believed that you are implementing our order in letter and spirit," the bench said and remarked in a lighter vein, "We have not so far started forgetting things".
The bench, however, made it clear the auction process which is scheduled for 12th November will go on.
While the Addition Solicitor General AS Chandhiok was making submission on the issue of auction, the bench said it was only concerned with its direction that all spectrum which was cancelled by it on 2 February 2012 was put for auction.
The centre, however, tried to justify its decision saying that it was done on the recommendation of TRAI. However, the bench was not satisfied with the explanation and said "it is your decision" and wondered why it was never earlier told about the recommendation of the regulating body. 
The apex court was hearing a plea by an association of GSM mobile operators seeking inclusion of airwaves allocated to two Tata Group companies in the fresh auction of 122 cancelled 2G spectrum licenses.
The Cellular Operators Association of India (COAI) has also sought a direction for auction 170 MHz more spectrum in the bidding.
COAI, an apex body of GSM operators, has sought the apex court's direction that all spectrum vacated by the cancellation of 122 telecom licences by the Feb 2 verdict should be put up for auction.
By "hoarding" scarce natural resources, the government is trying to "jack up" the price of spectrum, the COAI had said in the petition.
COAI has also sought apex court's direction to quash 83 MHz spectrum allotted to the Tata group under the dual-technology licence in 2008 and auction it.
According to COAI, 514 MHz of spectrum should be vacated following the cancellation of 122 licences and de-allocation of 83 MHz spectrum to Tatas.
Five companies - Bharti Airtel, Idea, Vodafone, Videocon and Telenor-promoted Telewings - are likely to participate in the fresh auction for 1800 MHz spectrum 
The COAI, which represents GSM operators Bharti Airtel, Idea and Vodafone has sought cancellation of licence and GSM spectrum of Tata group companies, Tata Teleservices Ltd (TTSL) and Tata Teleservices (Maharashtra) Ltd (TTML) for inclusion in the fresh auction.
COAI has sought to include Tata's spectrum of 83.6 MHz allocated in 2008 along with the 122 2G licences in the fresh auction contending that TTSL and TTML received the radiowaves in pursuance of the same press releases through which the other 122 licences were granted.


Forged papers for mobile connection to attract police action

Under the new rules, the authorised person selling mobile SIM cards will have to give an undertaking that he has seen the applicant and matched the photograph attached on the application form

New Delhi: Taking new mobile phone connection from Friday will require physical verification of facts provided by subscribers and submission of forged documents will lead to police inquiry, reports PTI.
Tougher guidelines by the Department of Telecom (DoT), which took effect today, make operators responsible for inaccurate information provided by subscribers for taking new pre-paid and post-paid mobile connections.
Under the new rules, the authorised person selling SIM cards will have to give an undertaking that he has seen the applicant and matched the photograph attached on the application form.
Retailers and franchisees selling mobile SIM cards will have to register police complaint against subscribers if they submit forged documents to get the connections.
All the telecom operators across the country are required to comply with the new guidelines.
"By and large we are compliant with most of the norms though there are a few areas for which we have sought clarifications from DoT like verification of date of birth and age," GSM industry body COAI director general Rajan S Mathews told PTI.
He said the government has indicated that the operators have to verify certain documents which include date of birth and age of users.
"We have asked DoT what should we do in case if the user has no documents related to his date of birth," he said.
COAI is expecting a reply on the issues in the next few days.
According to the guidelines, "In cases where forged documents are submitted by the subscriber and originals are also forged, police complaint or FIR shall be lodged by the PoS (Point of Sale) or franchisee against the subscriber within 15 days of bringing it to the notice of licensee (telecom operator)."
The retailer will have to sign, authenticating that the documents submitted by the customer have been verified with original copies of proof of address and identity.
The guidelines also make it mandatory for the licensee to sign the form prior to the activation of SIM card, certifying that the information provided on the form is correct.
Telecom operators will also have to file First Information Report (FIR) against the franchisee or SIM seller if the SIM is sold against documents of any other subscriber or person without the owner of the document having any knowledge of it.
Further, legal action will be taken against telecom operators for failing to act against the errant sellers and subscribers.


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