Nifty manages to keep itself above 5,870, the recent downtrend may end. But will the short subsequent upmove be sustainable?
Of the markets that were open today, all the Asian indices closed in the positive, except for Taiwan Weighted which closed marginally lower. The Indian benchmarks opened in the positive and went on to rally later in the morning to close in the positive to make highest percentage gain in past 17 trading days (including today). From here, if the Nifty manages to keep itself above 5,870 we may see the downtrend ending. The NSE saw volume of 60.98 crore shares and an advance decline ratio of 939:773.
The Sensex opened 47 points higher at 19,302 while the Nifty opened 9 points higher at 5,865. In a market that lacked participation, speculators bid the prices higher, in the absence of any negatives. The Sensex hit an intra day high of 19,468 while the Nifty hit a high of 5,917.
What boosted market sentiments were reports that a panel appointed by the government to look into oil and gas exploration contracts had recommended a pricing formula that could sharply raise the prices of natural gas and the hopes of easing liquidity as the Reserve Bank of India (RBI) continues with cash injection measures and expectations of a rate cut in January.
The Sensex closed at 19,417 (162 points up/ 0.84%) while the Nifty closed at 5,906 (50 points up/ 0.85%).
The broader markets too were positive with BSE Mid-cap index gained 0.66% and the BSE Small-cap index rose 0.36%.
The top sectoral gainers were BSE Capital Goods (up 1.68%); BSE Bankex (up 1.36%); BSE Realty (up 1.22%); BSE Power (up 0.95%); BSE Oil & Gas (up 0.80%). The only loser was BSE IT (down 0.17%).
As many as, 22 of the 30 stocks on the Sensex closed in the positive. The chief gainers were Bharti Airtel (up 2.78%); ICICI Bank (up 2.38%); Larsen & Toubro (up 2.19%); Jindal Steel & Power (up 2.03%) and SBI (up 1.84%). The major losers were Hindustan Unilever (down 1.40%); Hero MotoCorp (down 0.81%); Tata Motors (down 0.42%); Infosys (down 0.33%) and TCS (down 0.25%).
The top two A Group gainers on the BSE were— Berger Paints (up 6.77%) and Eicher Motors (up 6.66%).
The top two A Group losers on the BSE were—Bayer Cropscience (down 2.57%) and Strides Arcolab (down 2.36%).
The top two B Group gainers on the BSE were— Emami Infrastructure (up 19.91%) and Flawless Diamond (up 19.57%).
The top two B Group losers on the BSE were—Divine Multimedia (down 19.34%) and Shree Precoated Steels (down 14.95%).
Out of the 50 stocks listed on the Nifty, 40 stocks settled in the positive. The main gainers were Bharti Airtel (up 2.72%); Jaiprakash Associates (up 2.66%); ICICI Bank (up 2.47%); Larsen & Toubro (up 2.35%) and Jindal Steel & Power (up 2.17%). Hindustan Unilever (down 1.64%); Hero MotoCorp (down 0.45%); Grasim Industries (down 0.28%); Infosys (down 0.28%) and HCL Technologies (down 0.23%) settled at the bottom of the index.
US President Barack Obama plans to return early from his annual vacation to Hawaii in order to take part in talks to avert the fiscal cliff of austerity measures due to take effect at the start of the year. The US fiscal cliff refers to the year-end deadline for the expiration of hundreds of billions of dollars worth of tax cuts and the triggering of $109 billion in across-the-board spending cuts, if the US Congress fails to act.
Chinese rating agency Dagong Global Credit Rating Co on Tuesday, 25 December 2012 put US sovereign debt on a negative watch and highlighted what it said was a lack of political consensus on how to tackle Washington's debt problem over the long term.
Among the Asian indices, Nikkei was the top gainer, up 1.49% while the lone loser was Taiwan Weighted which fell 0.03%.
Suzlon Energy’s chairman and managing director of the company on behalf of the promoter group have sold 37.5 million shares for a total consideration of approximately Rs63 crore representing around 2.11% of the paid-up capital of the company. The promoters group holding in the company stands reduced to 50.65% of the paid-up capital. The company plans to use funds for business operations and debt reduction. Suzlon Energy fell 1.68% to close at Rs17.60 on the BSE.
The government today approved sale of its 12.5% stake in Rashtriya Chemicals and Fertilisers Ltd (RCF), which could fetch around Rs360 crore. The government currently holds 92.5% stake in RCF. The stake sale approval is part of the government's decision to raise Rs30,000 crore through disinvestment in the current fiscal. RCF rose 3.50% to close at Rs57.60 on the BSE.
Jeevandayee scheme offered by Maharashtra Government provides health insurance cover up to Rs1.5 lakh for families earning less than Rs1 lakh per year. Will the genuine customers be given treatment and false claims denied? Find out the progress and hurdles
The State Government of Maharashtra has launched Rajiv Gandhi Jeevandayee Arogya Yojana (RGJAY) in order to improve medical access facility for both Below Poverty Line (BPL - Yellow card holders) and Above Poverty Line (APL- orange card holders) families. RGJAY is already implemented in eight districts including Mumbai and would be implemented throughout the state of Maharashtra in phased manner for a period of three years.
Find out more about the scheme - http://moneylife.in/article/rajiv-gandhi-jeevandayee-arogya-yojana-what-you-need-to-know/30348.html
As with any other well-meaning government health insurance scheme, RGJAY has been having problems in implementation. There have been reports of some private hospitals profiting from unnecessary surgical procedures and high-cost procedures instead of treating the patient by medicines.
Clearly, the hospital business depends on number of procedures done. The State Government has purchased the insurance cover from National Insurance Company (NIC), who pays the hospitals for any procedures that are performed. There are limited numbers of good private hospitals on the panel of RGJAY and hence it may be difficult from RGJAY society to taken stern action against errant hospitals.
According to Dr Raju Jotkar, assistant director, RGJAY, “Given the infancy of RGJAY since inception on 2 July 2012, it would be too early to pass on any such judgements without any tangible evidence. However each network hospital is under scanner of RGJAY.”
RGJAY has implemented processes to ensure that the cracks in the system for pilfering are covered. Dr Raju Jotkar, says, “The network hospital is likely to opt for high-end package over low-end wherever feasible. However, the built-in preauthorization review for each request by network hospital by insurer as well as RGJAY society (Government) offers an opportunity to control such demands if any in light of evidence. The two layered scrutiny removes all biases as well as detect the unreasonable requests precisely. Moreover, RGJAY have reserved 132 procedures having risk of abuse to public network hospitals only. Over and above this oversight and vigilance mechanism helps to capture any misbehaviour or irrational requests of network hospitals.”
RGJAY society has paid NIC premium of Rs333 per family (service tax extra) for about 49.2 lakh beneficiaries, of which two quarterly premiums have been paid till date. It means they have paid the insurance company premium of Rs82 crore for two quarters ending December 2012. There has been media report a month ago of the insurance company already having paid Rs60 crore in claims and that they have refused to extend its services beyond the present eight districts as it is dubbed as a loss-making proposition. Dr Jotkar is tight lipped about it with the response “It would be prudent to pose this question to NIC.”
While the steps taken by RGJAY society will help ensure that false claims are denied, how will it ensure that genuine customers are given treatment? The first level of authorisation for the procedure is from insurer or rather TPA (third party administrator). With heavy incurred claims within two quarters of the scheme launch, will the insurance company (or TPA) keep its profit margin by refusing approval for the procedure? Even though it cannot be asserted at this time, it is all too familiar with other Government schemes like Rashtriya Bima Swasthya Yojana (RBSY) in Maharashtra.
Maharashtra Government had sought a probe by the Central Bureau of Investigation (CBI) into non-settlement of claims by insurance companies under RBSY, Labour Minister Hassan Mushrif told the Legislative Council. The labour minister conceded that the RBSY scheme was tailor-made for insurance companies to earn profit. In Maharashtra alone, Rs215 crore were paid as premium and claims of Rs134 crore were not settled by the insurance company.
In the third part of the series we will cover details of insurance company and TPA payment for RGJAY insurance cover. Gaurang Damani, well-known activist, had filed an RTI query to find about the TPA incentive to reduce claims ratio.
Gen Singh has also been named in an FIR by the Delhi Police for his alleged role in protests against the gang rape of a girl in a moving bus on 16th December
New Delhi: The Union Government has decided to withdraw all security cover provided to former Army Chief Gen VK Singh, who has been taking part in a number of protests over corruption, Delhi gangrape incident and other issues, reports PTI.
The former Army Chief was provided Z 'Plus' security cover till 30th November but in a review meeting, the Ministry of Home Affairs took a decision that he does not require any protection, Army sources said here.
After the decision was conveyed to the Army Headquarters, it is in the process of withdrawing all vehicles including a bullet-proof car and around 30-35 personnel from his security, they said.
Seven vehicles and 30-35 personnel were deployed in his security duties round the clock, they said.
Gen V K Singh, who retired on 31st May, was given a Z Plus security cover till 30th November and he was allowed to stay in Government accommodation in Delhi Cantonment area for one year after he had sought a nine-month extension from Defence Minister AK Antony.
Singh has been named in an FIR by the Delhi Police for his alleged role in protests against the gang rape of a girl in a moving bus on 16th December.
Soon after his retirement, he was critical of the government on various issues and shared the stage with yoga guru Ramdev and Anna Hazare on Lokpal and blackmoney issues.
On the gang rape issue, he had recently said the system stands "completely exposed and defanged" as not just one daughter, but hundreds of others are equally vulnerable to predators in the face of "growing impotency" to take any action.
In late November, he had also called for the dissolution of Parliament and had called for its gherao in support of the demands raised by sugarcane farmers from Uttarakhand and Uttar Pradesh.
In the last few months of his tenure, he became the first Chief of the Army to have approached the Supreme Court against the Government on the personal issue of his date of birth.