BSE Sensex, Nifty may head lower: Weekly Market Report

Although the uptrend is still on, a close below the day’s low may pull down the Nifty further

The market closed mildly in the positive this week on cautiousness as both Houses of Parliament voted on allowing FDI (foreign direct investment) in retail. This makes it a third weekly close in the green. Key economic indicators like industrial output numbers and headline inflation, which would be released next week, would be keenly watched by investors.


The Sensex closed the week at 19,424, up 84 points (0.44%) and the Nifty gained 28 points (0.47%) to 5,907. While the uptrend is not broken, a close below the day’s low may pull down the Nifty further.


The market started the week on a subdued note as cautiousness prevailed ahead of the vote on FDI in Parliament. The market closed with minor gains on Tuesday even as the Lok Sabha began its debate on allowing FDI in retail in the country. Hopes of the government garnering the requisite number of votes in the Lok Sabha on the FDI issue led the benchmarks higher on Wednesday.


The market settled in the green on Thursday on late buying resulted as the Mayawati-led Bahujan Samaj Party asserted her willingness to vote in favour of FDI in retail in the Rajya Sabha. On Friday, the market pared all its gains in the second half of trade and settled lower even as the government won the vote in the Rajya Sabha on FDI in retail.


The top sectoral gainers were BSE Realty (up 5%) and BSE Oil & Gas (up 3%). On the other hand, BSE IT (down 4%) and BSE TECk (down 3%) were the main losers in the week.


State Bank of India, Hindalco Industries (up 6% each), Reliance Industries (up 5%); BHEL and Sterlite Industries (up 4% each) were the key gainers on the Sensex in the week. On the other hand, Infosys (down 5%), Bharti Airtel (down 4%), TCS, Wipro (down 3% each) and HDFC Bank (down 2%) settled at the bottom of the index.


The chief Nifty gainers were Jaiprakash Associates (up 9%); SBI (up 7%), Hindalco Ind (up 6%), RIL and DLF (up 5% each). The major losers were HCL Technologies (down 6%), Infosys (down 5%), Bharti Airtel, TCS (down 4% each) and Grasim Industries (down 3%).


The HSBC India Manufacturing Purchasing Managers’ Index (PMI)—a measure of factory production—stood at 53.7 in November, up from 52.9 in October, registering the fastest pace in five months.


On the other hand, the HSBC's Services PMI for November declined to 52.1 in November, down from 53.8 in the previous month, signalling the slowest rate of expansion in the current 13-month sequence. The index has witnessed significant decline in the last two months after registering the fastest pace of growth in seven months in September.


In international news, US policy makers are struggling to find ways to avoid the “fiscal cliff”, when tax increases and spending cuts come into effect in the New Year. This apart the Federal Open Market Committee’s (FOMC) two-day meeting next week is expected to maintain the easy monetary policy till the labour market sees an improvement.


Meanwhile, Bundesbank, the German central bank, cut its 2013 projection to 0.4% from the 1.6% predicted in June and said the economy will grow 0.7% this year, down from its previous forecast of 1%.


Economy & Nation Exclusive
Aam Admi Party: Dilemma of accepting current political practices?

People with dubious political antecedents are seen jumping on to the AAP bandwagon. Unless Kejriwal and team find a way to deal with such situations, some of these unguided enthusiasts or maybe even deliberately planted infiltrators can do a lot of damage to the AAP

The newly formed Aam Admi Party (AAP) of Arvind Kejriwal and a set of noted activists is grappling with an unusual set of teething problems. Chief among these is to find ways to get ground intelligence about people who want to be associated with them and how to prevent persons with dubious political antecedents from jumping on to the AAP bandwagon. Unless it quickly finds a way to deal with it, some of these unguided enthusiasts or maybe even deliberately planted infiltrators can do a lot of damage to the party. 
Consider this. On 6th December, among the sea of political posters jostling for space to wish the followers of Babasaheb Ambedkar at Chaitya Bhumi in Dadar, we came across this poster (see below).  It has the look and feel of a typical political poster—the occasion, a salute to party leaders and at the bottom the ‘humble’ party worker who prints the poster and usurps public space to hang it. The difference was that this was an Aam Admi Party poster.  It was startling enough for us to tweet it and the response, was the same as our initial thoughts—isn’t it too early to join the poster plastering form of politics? AAP’s Mumbai head Mayank Gandhi then clarified that an over ‘enthusiastic’ supporter had printed the poster without permission. Clearly, this is not the last time it will happen and it needs fixing.
The very next day, activist, advocate and IPS officer Yogesh Pratap Singh issued an open letter to Arvind Kejriwal, founder of AAP. He stated, “I have been informed by my associates in Raigad, rather in anguish, that when you (Kejriwal) were speaking passionate and strong words against corruption, your dais was shared by Jayant Patil of the Peasants and Workers Party of India (PWP) who controls a business empire of thousands of crores in Alibaug and is involved in several violations of laws including large-scale destruction of mangroves, much in violation of the high court order. However, somewhat like other politicians of the Congress and BJP, he too, has managed to escape from the strong arms of the law.”
We checked with well-known activist Sumaira Abdulali who has been fighting illegal sand-mining in the Alibaug area from which Jayant Patil comes. She not only confirmed it, but also told us that Mr Patil's family was among those who had attacked her. She mentioned that Jayant Patil and his sister Meenakshi Patil are also prominently into illegal sand mining and were named in police reports as being so. Ms Patil’s son was one of the people who attacked Ms Abdulali and her colleagues at Mahad . The attack on Ms Abdulali and her harassment through dubious cases had caused a lot of outrage among Mumbai activists. 
Fortunately, AAP is fully aware of the challenges it faces.  One of its top leaders, Dr Yogendra Yadav responded to our query to say, “We need to find ways to avoid such mistakes without becoming overly regimented. I remember that something similar happened to us on 2nd October. An MLA of dubious reputation from Haryana got on to our stage and everyone thought he was invited by the other person. It is only when he insisted on speaking that we discovered who he was.”
One of the ways, AAP can attempt to avoid similar situations is to engage a lot more with people who have long experience in activism and civil society matters. Although some of the experienced activists may be opinionated and may not agree to AAP’s agenda, an open discussion may lead to something fruitful for the new entrant in the political arena.




Ashish Kumar

4 years ago

I agree. It is certainly also becomes a very disheartening moment for those honest workers who in day-to-day life engage with their surrounding and have to face questions regarding such people and incidences. I know walking inside a carbon-black path without such spots is extremely hard, but that the challenge we have taken now can't miss by saying it was just an incidence. I wish AAP my best wishes and support.


4 years ago

AAP or for that matter, any political party or social organisation in India, in the present situation, may not be in a position to insulate against the kind of infiltration or misuse of platform of the kind mentioned here. What could be tried is, transparent functioning, vigilant approach to feedbacks like this and online corrective measures. It may not be teething trouble and may last longer. But let us hope, as competition from new generation banks compelled old banks to provide better services, the vision and mission being announced by AAP will give opportunity for introspection and reform for major political parties which are trying ‘coalition’ tactics on a day-to-day basis.

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