BSE Sensex, Nifty struggling: Friday Closing Report

The market indices went up after three days of decline but the trend is down


Easing of the November headline inflation pushed the market higher on hopes that the RBI will cut interest rates at next week’s policy meeting. Although the market indices went up after three days of decline the trend is still down as the benchmarks are struggling to find direction. The National Stock Exchange saw a volume of 73.16 crore traded on the exchange and advance-decline ratio of 795:909.


The domestic market opened on a cautious note ahead of the release of the headline inflation numbers for November. Uncertainty over the US budget deal, which pulled the US markets down on Thursday, also weighed on the sentiments.


The Nifty resumed trade five points down at5,847 and the Sensex opened at 19,218, a cut of 11 points from its previous close. Intense volatility saw the benchmarks fluctuating between red and green in early trade as chairman of the Prime Minister’s Economic Advisory Council C Rangarajan hinted that the Reserve Bank of India, in its monetary policy review on 18th December, will not change interest rates.


The indices touched their intraday lows in the first hour of trade with the Nifty going down to 5,839 and the Sensex falling to 19,193.  A fall in the wholesale price index (WPI) based inflation to 7.24% in November from 7.45% in the previous month gave the market a much-needed boost, which pushed the benchmarks into the positive in late morning trade.


The gains pushed the indices to their intraday highs in noon trade. At the highs the Nifty touched 5,886 and the Sensex rose to 19,349. However, profit booking saw the indices paring part of their gains subsequently.


The market touched its previous closing level once more in the post-noon session as selling intensified. However, a smart recovery in late trade resulted in the market closing near the day’s high. The Nifty gained 28 points (0.48%) to 5,880 and the Sensex finished trade at 19,317, up 88 points (0.46%).


Among the broader indices, the BSE Mid-cap index gained 0.60% and the BSE Small-cap index rose 0.08%.


The top sectoral gainers were BSE Metal (up 2.31%); BSE Bankex (up 1.27%); BSE Realty (up 1.01%); BSE IT (up 0.73%) and BSE PSU (up 0.60%). The losers were BSE Consumer Durables (down 1.23%); BSE Healthcare (down 0.29%) and BSE Power (down 0.23%).


Fourteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Sterlite Industries (up 3.57%); Hindalco Industries (up 3.54%); State Bank of India (up 2.58%); Jindal Steel & Power (up 2.48%) and Tata Steel (up 2.33%). The main losers were Bharti Airtel (down 1.52%); BHEL (down 1.38%); Dr Reddy’s Laboratories (down 0.99%); Tata Power (down 0.90%) and Cipla (down 0.60%).


The top two A Group gainers on the BSE were—Muthoot Finance (up 7.94%) and Jaypee Infratech (up 4.45%).

The top two A Group losers on the BSE were—Pipavav Defence & Offshore Engineering (down 3.28%) and TTK Prestige (down 2.88%).


The top two B Group gainers on the BSE were—Polar Industries (up 20%) and Wheels India (up 20%).

The top two B Group losers on the BSE were—Taksheel Solutions (down 19.95%) and GTL Infrastructure (down 19.94%).


Out of the 50 stocks listed on the Nifty, 32 stocks settled in the positive. The major gainers were Bank of Baroda (up 3.75%); Hindalco Industries (up 3.71%); Sesa Goa (up 3.40%); Tata Steel (up 2.92%) and SBI (up 2.77%). The key losers were Bharti Airtel (down 1.86%); Power Grid Corporation (down 1.48%); Jaiprakash Associates (down 1.36%); BHEL (down 1.29%) and Siemens (down 1.24%).


Markets in Asia settled mixed with a negative bias. The China HSBC Flash Factory PMI for December rose to 50.9, up for the fifth month in a row while the tardy progress of the US budget talks concerned investors.


The Shanghai Composite soared 4.32%; the Hang Seng climbed 0.71% and the Straits Times gained 0.38%. On the other hand, the Jakarta Composite declined 0.26%; the KLSE Composite and the Nikkei 225 fell 0.05% each; the Seoul Composite dropped 0.39% and the Taiwan Weighted tanked 0.75%.


At the time of writing, the CAC 40 of France was down 0.07%; DAX of Germany was up 0.20% and UK’s FTSE 100 was trading 0.11% lower. At the same time, US stock futures were trading with small gains.


Back home, foreign institutional investors were net buyers of stocks totalling Rs1,256.57 crore on Thursday while domestic institutional investors were net sellers of equities amounting to Rs665.66 crore.


Diversified tiles manufacturer Asian Granito India has decided to sett up a chain of Asian Tiles World (exclusive) retail stores across the country. The company, which currently has 20 exclusive outlets, expects to have a chain of 50 stores across top cities by next year. The stock rose 0.11% to settle at Rs45.50 on the NSE.


Drug major Suven Life Sciences on Thursday said it received grant of five product patents from China and Korea for its new chemical entities for treatment of disorders related to neurodegenerative diseases. With these new patents, Suven now has a total of eight granted patents from China and ten from Korea. Suven Life Sciences declined 2.59% to close at Rs32 on the NSE.


BSE launches SME index

The index will be constituted by 11 companies listed on the BSE SME platform

Mumbai: The Bombay Stock Exchange (BSE) on Friday launched an Small and Medium Enterprise (SME) index that aims at tracking the current primary market conditions in the Indian capital market and measure the growth in investors' wealth over a period, reports PTI.
The index will be constituted by SMEs listed on the BSE SME platform. So far, there are 11 companies listed on the SME platform and this index will have features similar to the BSE IPO index.
"This index will help to track and measure the growth of the companies over a period. Through this, the authorities can recognise the viability of the company.
"And based on the report, people can invest in these companies, which will not only help the organisations to grow their businesses but also create employment," Minister of State (Independent Charge) Ministry of Micro Small and Medium Enterprises KH Muniyappa said here at the launch of the index.
Typically, SME companies in the country have had to rely on debt financing from banks or non-banking financial institutions as equity capital was largely inaccessible to them.
"This time, the government, Sebi and the stock exchanges have put in a lot of efforts to make the third attempt a success. But with the SME platform, companies will not have to rely on loans from banks, but can raise funds through the market and play an important role in contributing to the economic growth of the country," he said.
Out of the 11 companies listed so far, 10 are trading above their issue prices, while one is below its IPO price.
Small and medium enterprises (SMEs) in India constitute an important segment of Indian economy. Currently, the contribution of SMEs alone has been greater than 7% to GDP and 45% to industrial production. It is also the second largest provider of employment after agriculture.
SMEs also contribute to 40% of total exports directly and a significant amount of exports indirectly through large trading houses or third parties.


PMO asks ministries to take up direct cash transfer scheme on war footing

PMO has asked ministries to organise camps to fast pace enrolment under Aadhaar and also have to ensure the beneficiaries have bank accounts linked with Aadhaar numbers

New Delhi: Prime Minister's Office (PMO) has asked ministries to take up implementation of direct cash transfer scheme on a "war footing" before the launch of the programme on 1st January, reports PTI.
It has also asked them to organise camps to fast pace enrolment under Aadhaar for the purpose.
Primary activity of all the Ministries implementing schemes in the coming weeks will be to complete enrolment of Aadhaar for all beneficiaries.
They also have to ensure the beneficiaries have bank accounts in which Aadhaar numbers will also be mentioned, besides compilation of beneficiary databases.
"This has to be addressed on a war footing. The best approach may be a Camp approach," the PMO said in a statement.
Centre plans to provide direct cash transfers of benefits in 34 schemes in the selected 51 districts.
Also, Planning Commission has been asked to finalise dates for a one-day meeting of the Collectors of the concerned districts (excluding Gujarat and Himachal Pradesh) between 10-15th December.
"Collectors will need to be given clear instructions on how to do this when they come for the meeting next week. Planning Commission will coordinate the necessary preparations for this," the PMO said.
Following the directions of the National Committee on Direct Cash Transfers chaired by the Prime Minister last month, the Executive Committee held a meeting for follow-up action on DCT.
The Committee, chaired by the Principal Secretary in the PMO, discussed in detail the core objective of how direct cash transfers of benefits in the selected 43 districts (excluding, till the end of the election process, 8 districts in Himachal Pradesh and Gujarat), will be implemented as per the timelines.
The PMO further said banks would also be authorised to be Registrars for Aadhaar numbers and will be enabled to enrol beneficiaries for Aadhaar at the locations where camps are to be held and otherwise as well.
The PMO further said that all implementing ministries will launch publicity, information and instruction campaigns in the 43 districts immediately and in the 8 districts of Himachal Pradesh and Gujarat after 20th December.
Planning Commission will organise a video conference with Chief Secretaries/Finance Secretaries of the participating States to assess preparedness for commencing the rollout of the scheme.
Also, all members of the Executive Committee will be informed and would be encouraged to participate personally in the video conference, the PMO added.
It futher said standardised formats for the basic data to be collected for entry of Aadhaar numbers and Bank account details will be finalised by Department of Financial Services (DoFS).
This will be done in consultation with UIDAI, banks and implementing Ministries and sent to Planning Commission for circulation to all concerned.
The format will contain the minimum essential data that will be needed for effecting Aadhaar-enabled direct cash transfers, it added.
"Department of Expenditure will work out, in consultation with DoFS, UIDAI, Planning Commission and other implementing Ministries, the process for fund flows and any changes that need to be made to current instructions on Utilisation Certificates, etc. so that all these meet government accounting and reporting requirements," PMO said.
The PMO further said that for centrally sponsored schemes, ministries will continue to transfer funds through states as at present.
"For Central Sector schemes, the direct cash transfers will be directly to beneficiary from GoI Ministries," it said.
For schemes where the beneficiary is a minor, PMO said there would be a joint bank account, preferably with the mother. Under it, the Aadhaar of the child would be used for beneficiary identification purposes and mother's Aadhaar would be needed for operating the bank account.




4 years ago

This bull-dozer approach to schemes affecting mostly poor people with low literacy levels is unwelcome. Since independence, several schemes have been implemented for the benefit of less privileged class. In this case alone there is an undue haste bordering craziness. None of the linkages necessary for implementing ‘cash-transfer’ smoothly is in place. Issue of AADHAR cards, opening of bank accounts, identifying beneficiaries assessing the funds needed in respective areas are all going to be done, it seems, in ‘MELAs’. Feeling a little embarrassed to ask even God to save India!

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