BSE Sensex, Nifty still undecided on the next move: Monday closing report

Will the RBI rate review help in reversing the slow downturn?

The market managed a flat close with a positive bias on the back of a smart recovery in the last hour. All eyes will now focus on the Reserve Bank of India’s monetary policy review, which takes place tomorrow. Today the Nifty moved almost in the same range as that on Friday and ended just a point above its previous close. We had mentioned in our Friday market report that the Nifty is in an indecisive zone and we may see the trend downward in the medium-term. We continue to maintain the stance. The NSE saw a volume of 53.76 crore shares and the advance decline ratio of 604:1053.
The Indian market opened in the positive following the Cabinet reshuffle, which took place on Sunday wherein 17 new faces were inducted into the government. The reshuffle saw Veerappa Moily taking charge of the petroleum ministry and Jyotiraditya Scindia being appointed as minister of state for power. On the global front, markets in Asia were trading with gains following reports of 2% growth in the US economy for the third quarter of 2012. The US markets will be closed on Monday and possibly Tuesday due to Hurricane Sandy lashing the east cost of the country.
Back home, the Nifty opened one point up at 5,665 and the Sensex resumed trade at 18,656, gaining 31 points over its close on Friday. All-round buying in early trade pushed the benchmarks to their day’s high. At the highs, the Nifty rose to 5,698 and the Sensex climbed to 18,743.
Profit taking at the highs resulted in the market paring some gains and trading sideways in subsequent trade. An increase in the selling pressure in late-morning trade and the Asian market trading lower saw the indices giving up all of their gains and venturing into the negative at around 12.30pm.
The market continued to hover on both sides of its previous close in noon trade as cautiousness set in ahead of the Reserve Bank of India’s monetary policy review, due to take place tomorrow.  A negative opening of the key European markets also added to woes of local investors.
Each recovery attempt was met with stiffer resistance, which led the market to its lows at around 2.30pm. At the lows, the Nifty slipped to 5,645 and the Sensex dropped to 18,572.
The benchmarks recovered from the lows with support from oil & gas, consumer durables and healthcare stock, which helped the market close with meagre gains. the Nifty added one point to settle at 5,666 and the Sensex ended the session at 18,636, a gain of 10 points.
Among the broader indices, the BSE Mid-cap index declined 0.43% and the BSE Small-cap index dropped 0.60%.
The top sectoral gainers were BSE Oil & Gas (up 0.62%); BSE Consumer Durables 
(up 0.51%); BSE Healthcare (up 0.27%); BSE TECk and BSE IT (up 0.13% each). The key losers were Capital Goods (down 1.69%); BSE Realty (down 0.72%); BSE Power (down 0.68%); BSE PSU (down 0.56%) and BSE Bankex (down 0.28%).
Sixteen of the 30 stocks on the Sensex closed in the positive. The main gainers were Wipro (up 2.56%); Hero MotoCorp (up 1.95%); Tata Power (up 1.82%); Dr Reddy’s Laboratories (up 1.62%) and Reliance Industries (up 1.53%). The major losers were BHEL (down 6.19%); Sterlite Industries (down 2.28%); Tata Motors (down1.80%); Coal India (down 1.11%) and Larsen & Toubro (down 1.08%).
The top two A Group gainers on the BSE were—United Breweries (up 6.51%) and JSW Energy (up 3.10%).
The top two A Group losers on the BSE were—United Spirits (down 9.15%) and BHEL (down 6.19%).
The top two B Group gainers on the BSE were—Baba Arts (up 19.80%) and Aarya Global Shares & Securities (up 18.89%0.
The top two B Group losers on the BSE were—Orissa Sponge Iron & Steel (down 12.35%) and Spectacle Infotek (down 11.11%).
Out of the 50 stocks listed on the Nifty, 26 stocks settled in the positive. The key gainers were Wipro (up 2.54%); Tata Power (up 2.15%); Hero MotoCorp (up 1.73%); Dr Reddy’s (up 1.52%) and Cipla (up 1.51%). The declining stocks were led by BHEL (down 6.58%); Tata Motors (down 2.08%); BPCL (down 1.48%); L&T (down 1.35%) and Coal India (down 1.34%).
Markets in Asia pared early gains and settled mostly lower after a slew of corporates from the region reported lacklustre earnings. The Hong Kong government has introduced a 15% tax on property purchases by overseas and corporate buyers in a bid to cut risks of a housing bubble. 
The Shanghai Composite declined 0.35%; the Hang Seng fell 0.16%; the Jakarta Composite dropped 0.18%; the Nikkei 225 shed 0.04%; the Straits Times tanked 0.91% and the Taiwan Weighted settled 0.59% lower. On the other hand, the KLSE Composite added 0.04% and the Seoul Composite ended flat.
At the time of writing, the key European markets were trading 0.58% to 0.88% lower and the US stock futures were in the negative. Financial markets in the US will remain closed on Monday on account of the nation’s capital gears for Hurricane Sandy.
Back home, institutional investors—both international and domestic—were net sellers in the equities segment on Friday. While foreign institutional investors pulled out funds amounting to Rs198.84 crore, domestic institutional investors withdrew Rs89.94 crore from equities.
Vedanta group firm Sesa Goa is likely to miss the production target of about 15 million tonne (MT) for the current fiscal due to mining ban in Goa, a senior company official said today.
During the first half of the fiscal, the company has produced about 3.7 MT iron ore. 
However, the mining ban in Goa has affected Sesa Goa's performance in the last quarter. All its operations except met coke and pig iron production are closed. Sesa Goa declined 1.18% to close at Rs167.85 on the NSE.
Coatings and specialty chemicals major AkzoNobel, launched its new initiative at its International Research Centre at Bangalore. The new initiative, India Analytical Centre (IAC), will leverage AkzoNobel’s global and local resources to provide high quality analytical services to fulfil the needs of all coatings businesses in India. The stock gained 1.19% to close at Rs968 on the NSE.
Venus Remedies today said it has received patent from Mexico for its antibiotic drug Vancoplus to combat a wide range of infections. The patent has been granted by Mexico Patent office and is valid till February 2026, Venus said in a release. The stock jumped 4.19% to settle at Rs302 on the NSE.


Blackberry service in India may be interrupted from next year

In a letter sent to mobile operators, the DoT said, failing to successfully demonstrate, a service/ services for interception as per norms, the Blackberry service may be restrained to be offered to subscribers from 1st January

New Delhi: Public sector undertakings -- Mahanagar Telephone Nigam Ltd (MTNL) and Bharat Sanchar Nigam Ltd (BSNL) have not yet given any time frame for testing of services for interception of Blackberry services notwithstanding the 31st December Government deadline for operators to comply with it or shut their services, reports PTI.
In a letter, the Government conveyed to telecom service providers (TSPs) that "Blackberry interception solution is in the final stages of development and testing by Research-In-Motion (RIM) and the telecom service providers in conjunction with an legal intercepting (LI) vendor.
"The developed solution should be deployed in coordination with RIM and offered for testing to the respective TERM cells on or before 31-12-12.
"Failing to successfully demonstrate, a service/ services for interception as per norms laid by Department of Telecommunications (DoT), the Blackberry service may be restrained to be offered to subscribers from 1-1-13 through your network," the letter sent by the DoT said.
This letter follows the responses of the TSPs in which they had given a time frame ranging from two to four months.
Apart from Vodafone which is ready to demonstrate the testing to the DoT, Airtel, Aircel sought 12 to 16 weeks, Loop Telecom four months and Tata by February 2013.
The responses have been received from all the TSPs except MTNL while BSNL which have not given any time frame, an official note said.
The DoT, in its communication recently, asked telecom operators about their readiness for deployment of interception solution in case of blackberry services offered by RIM through their network. 
In a note, the DoT said discussions have taken place on intercepting the services provided by Canada-based Research-In-Motion (RIM), manufacturers of the smart phones, but the TSPs have not been implementing the interception solution in respect of Blackberry services offered by them.
The Blackberry services, which were termed as security threat at one point of time by security agencies, had been asked to provide resolution and web-browsing requirements in respect of Blackberry Internet Service (BIS) in consultation with the TSPs and their lawful interception vendors.
RIM agreed to place a server in Mumbai in this connection, it added.
Blackberry claimed to have complied with the requirements of the probe agencies after their services were red-flagged on the security issues as the interception was not in the readable format.
However, the final testing of the solution provided by the RIM along with the TSPs was yet another hurdle which needed to be crossed before getting the nod of security agencies.


PSUs spending more money in contesting cases: NCDRC

According to the national consumer forum, PSUs spend more money on contesting cases than the amount they might have to pay to the claimant despite having large number of legal personnel under their employment

New Delhi: Public sector undertakings (PSUs) are behaving "penny-wise, pound-foolish" and spending more money in fighting cases than they might have to pay to the claimants, the apex consumer forum has said, reports PTI.
The National Consumer Disputes Redressal Commission (NCDRC) made the observation while pulling up Haryana Urban Development Authority (HUDA) for "gross negligence, deliberate inaction and lack of bonafides" in delaying by 204 days filing of a plea against a state consumer commission's order.
The NCDRC also imposed a fine of Rs50,000 on HUDA while blaming the legal staff of the PSUs for not examining cases properly and forcing litigants to approach courts, resulting in a rise in frivolous litigation.
"It is a well-known fact that courts across the country are saddled with large number of cases. PSUs' indulgences further burden them. PSUs spend more money on contesting cases than the amount they might have to pay to the claimant. In addition thereto, precious time, efforts and other resources go down the drain in vain.
"PSUs are possibly an apt example of being penny wise, pound-foolish. Rise in frivolous litigation is also due to the fact that PSUs though having large number of legal personnel under their employment, do not examine the cases properly and force poor litigants to approach the court," it said.
The HUDA had challenged an order of Haryana State Consumer Commission directing it to pay 12% per annum interest on the amount paid by an allottee for a plot of land alloted to her in 1995 but possession of which was not given to her.
The apex consumer body came down heavily on HUDA for its inordinate delay in filing its revision petition saying "no sufficient grounds are made out for condoning the long delay of 204 days in filing the present revision petition." 
"...present revision petition being barred by limitation is hereby dismissed with cost of Rs50,000," the bench headed by Justice VB Gupta said adding that the amount be deposited in the 'Consumer Legal Aid Account'.




4 years ago

PSUs are in the august company of organisations in the private sector which sometimes fight on prestige and are less concerned about ‘justice’ or costs involved. The immediate measures from the side of government and judiciary to improve the position could include:

• Segregating cases which need to be decided within a year and taking them on a priority basis by the courts now in position.
• Leaving the remaining cases to new Special Courts to be put in place at all levels depending on the number of pending cases.
• Ensuring vacancies of judges are filled in time
• Making it compulsory for government and public sector organizations to expedite procedures where they are on either side of matters before courts. This is necessary as there is laxity on their side as cost and delay seldom affects the individuals who handle cases in government and public sector. This position is slowly creeping into big corporates also.
• Come to some ‘out of court’ amicable settlement where the cases involve senior citizens, their entitlements like pension or salary arrears for periods they served organisations and cases are in courts on disputes of interpretation of rules/regulations or missing records.
• Making necessary legislative changes to reduce procedural delays
• Simultaneous efforts to encourage concerned parties to settle issues out of court. This method would bear fruit where party on one side of the dispute is government or quasi-government organizations.

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