BSE Sensex, Nifty still in a downtrend: Monday Closing Report

Nifty has to stay above 5,645 for the bulls to be hopeful

The market ended the last day of the Hindu calendar on a flat note weighed down by the decline in industrial production numbers for September and weak global cues. Today the Nifty hit a lower high and a lower low ended marginally in the negative. On Friday we had mentioned that the index may see further downward momentum if it closes below 5,645. We continue to maintain the stance. The National Stock Exchange (NSE) saw a volume of 64.22 crore shares and an advance decline ratio of 793:921.
The Indian market will hold a special ‘Muhurat’ trading session on Tuesday to welcome the Hindu New Year—Samvat 2069—and will remain closed on Wednesday. regular trading will resume on Thursday.
The Indian market opened with small gains ahead of the release of the industrial output data for September later in the day and weakness in the Asian markets which were mostly lower in morning trade on reports of a fall in Japan’s gross domestic product (GDP) to 0.9% in the September quarter and concerns about the US economy.
The Nifty opened two points up at 5,688 and the Sensex started off the day at 18,691, a gain of seven points over its previous close. Select buying in initial trade led the indices to their highs in the first half hour wherein the Nifty rose to 5,719 and the Sensex went up to 18,751.
However, the gains were short-lived as the benchmarks began paring early gains and edged lower. The disappointing Index of Industrial Production (IIP) data for September coming in at negative 0.4% compared to 2.3% in the previous month pushed the market into the red.
This apart, higher food prices pushed up retail inflation to 9.75% in October compared to 9.73% in the previous month. 
The market remained sideways in noon trade as benchmarks hovered on both sides of their previous closing levels. The lower opening of the key European markets kept the local indices in the red. The losses pushed the market to the day’s low. At that point, the Nifty fell to 5,666 and the Sensex went back to 18,608.
The market settled almost unchanged on a decline in IIP numbers for September and a weak trend across Asia. The Nifty shed three points to finish the session at 5,684 and the Sensex fell 13 points to 18,670.
While the Sensex settled with a negative bias, the broader markets were in the green. The BSE Mid-cap index gained 0.32% and the BSE Small-cap index rose 0.20%.
The main sectoral gainers were BSE Consumer Durables (up 1.13%); BSE Bankex (up 0.94%); BSE Realty (up 0.87%); BSE TECk (up 0.57%) and BSE IT (up 0.54%). The key losers were BSE Metal (down 0.70%); BSE Capital Goods (down 0.67%); BSE Oil & Gas (down 0.36%); BSE Auto (down 0.34%) and BSE Power (down 0.23%).
Eleven of the 30 stocks on the Sensex closed in the positive. The top gainers were HDFC Bank (up 1.85%); Bharti Airtel (up 1.63%); State Bank of India (up 1.59%); TCS (up 0.66%) and Infosys (up 0.48%). The major losers were Tata Steel (down 1.72%); Hero MotoCorp (down 1.67%); ITC (down 1.56%); Tata Power (down 1.43%) and Jindal Steel (down 0.95%).
The top two A Group gainers on the BSE were—United Spirits (up 34.93%) and L&T Finance Holdings (up 11.37%).
The top two A Group losers on the BSE were—United Breweries (down 4.48%) and Indian Hotels Company (down 3.77%).
The top two B Group gainers on the BSE were—BLS Infotech (up 20%) and Kamdhenu Ispat (up 20%).
The top two B Group losers on the BSE were—Raj Television (down 20%) and Somi Conveyor Beltings (down 19.75%).
Out of the 50 stocks listed on the Nifty, 24stocks settled in the positive. The chief gainers were IDFC (up 3.31%); HDFC Bank (up 2.15%); Jaiprakash Associates (down 2.03%); Bharti Airtel (up 1.69%) and SBI (up 1.57%). DLF (down 2.68%); Ranbaxy Laboratories (down 2.16%); Hero MotoCorp (down 2.03%); BPCL (down 2.01%) and Siemens (down 1.85%) settled at the bottom of the index.
Markets across Asia closed mostly in the red on the decline in Japanese GDP and economic concerns in the US. ON the other hand, the Chinese market received a boost from a higher trade surplus in October, which was the biggest in the past 45 months.
The Jakarta Composite declined 0.37%; the KLSE Composite fell 0.21%; the Nikkei 225 dropped 0.93%; the Straits Times shed 0.07%; the Seoul Composite lost 0.19% and the Taiwan Weighted settled 0.35% down. Among the gainers, the Shanghai Composite climbed 0.49% and the Hang Seng rose 0.21%.
At the time of writing, the European indices that opened in the red were mixed while the US stock futures were in the positive.
Back home, institutional investors—both foreign and domestic—were net sellers of stocks on Friday. Foreign institutional investors withdrew funds totalling Rs204.25 crore and domestic institutional investors pulled out Rs154.01 crore.
Mumbai-based DCB Bank today said its board has approved a preferential allotment Rs93 lakh shares to two overseas VC funds in order to partially meet the regulatory requirement of bringing down the promoters stake to 10%. Accordingly, the bank will issue around 56 lakh shares to WCP Holdings III and around 37 lakh shares to Tano Mauritius India FVCI II at premium of Rs33.68 per share, which has a face value of Rs10, the small-sized bank said in a statement. The stock gained 1.01% to settle at Rs44.80 on the NSE.
Natco Pharma has announced that it acquired 51% of the paid-up equity capital of Natco Organics, a joint venture between Natco Pharma and TIDCO. Natco Pharma jumped 2.935 to settle at Rs404 on the NSE.
India Infoline today said it has received approval from market regulator SEBI for launching its Alternative Investment Funds—IIFL Venture Fund, IIFL Private Equity Fund and IIFL Opportunities Fund. As part of the various asset management bouquets of products offered by the IIFL Group, India Infoline now will be additionally offering alternate asset investment products by launching various schemes, in due course, a company statement said here. The stock climbed 1.56% to settle at Rs68.20 on the NSE.


Diwali dampener: IIP, exports shrink, inflation rises

Diwali celebrations are going on, however on the economic front nothing seems working for the Indian government, as industrial production and exports are down while inflation is nearing double digit. Even the much talked about 2G spectrum auctions has received a lukewarm response

New Delhi: Hopes of early economic revival were belied with key data released on the eve of Diwali showing contraction in industrial production, continued decline in exports and rise in retail inflation, reports PTI.
Besides, the much-talked spectrum auction received a lukewarm response from telecom operators, casting doubts whether the government will be able to realise Rs40,000 crore as targeted from sale of radio waves.
After raising hopes of revival in August, the industrial production contracted again, shrinking by 0.4% in September due to dismal show by the manufacturing sector.
The factory output, as measured by Index of Industrial Production (IIP), declined by 0.4% as against an uptick of 2.3% in August.
Exports remained in the negative territory, declining by 1.63% in October pushing the monthly trade deficit to all time high $21 billion.
On the price front, there was no respite to the common man from rising inflation that is driven by high cost of food items such as sugar, pulses, vegetables as well as clothings.
The retail inflation moved closer to the double digit mark at 9.75% in October, even as India Inc pressed for interest rate cut to revive growth.
The economic growth rate slipped to nine-year low of 6.5% in 2011-12. It was 5.5% in the first quarter of the current fiscal prompting the Reserve Bank of India (RBI) to lower the growth projection for 2012-13 to 5.8%.
Terming the decline in industrial output in September as "very disappointing", Planning Commission Deputy Chairman Montek Singh Ahluwalia said the impact of recent reforms initiatives will manifest in the data for the second half of the fiscal.


Kerala Information Commissioner suspended for intervening in land-gift case

A police probe came across evidence to corroborate the charge that Kerala Information Commissioner K Natarajan had urged a police official investigating the land gift case to spare CPI-M leader Achuthanandan

Thiruvananthapuram: Kerala Governor HR Bhardwaj has suspended state Information Commissioner K Natarajan for allegedly intervening in the land-gift case involving CPI(M) stalwart VS Achuthanandan, reports PTI.


Action against Natarajan, a former DIG of police, was taken on the basis of the recommendation made by the state Government following a police probe which came across evidence to corroborate the charge that the Information Commissioner had urged a police official investigating the case to spare Achuthanandan.


According to official sources, the Governor had also written to the Supreme Court to conduct a detailed inquiry into the charge to decide whether Natarajan should be terminated from the post.


Under the law, the Supreme Court was the competent authority in taking termination procedures against information commissioners.


The complaint against Natarajan was given by DySP VG Kunhan, probing the land gift case in which Achuthanandan figures as the first accused.


The inquiry conducted by ADGP (Vigilance), R Sreelekha had found that Natarajan had been putting pressure on Kunhan to spare Achuthanandan in the case. The audio tape of the conversation purportedly made by Natarajan to Kunhan was aired by Malayalam TV channels a few weeks ago.


The case against Achuthanandan pertains to alleged violation of norms while allotting land to TK Soman, an ex-serviceman and his close relative in Kasaragod district when he was Chief Minister heading the previous LDF ministry.


Achuthanandan, the then Principal Secretary to Chief Minister Sheela Thomas, personal assistant Suresh and former Revenue Minister KP Rajendran are among the accused in the case. The matter came to light at the fag-end of the previous LDF rule and a vigilance probe was ordered by the present UDF government.


An FIR has been registered with Achuthanandan as the first accused in a Vigilance court at Kozhikode.


Natarajan was appointed Information Commissioner during Achuthanandan's tenure as Chief Minister.




5 years ago

The alleged land gift made by V.S. Achutanandan could be a mistake. He is a very honest man.

The Natarajan issue may be the handiwork of either the Congress or his detractors of his own party. Mr. Achutanandan does not need the help or intervention of a retd. DIG in this case.

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