BSE Sensex Nifty trying to break out of a narrow trading zone: Wednesday Closing Report

If the Nifty rallies higher, the next target would be 6,050

The market ended in the green for the second day on optimism from Indian parliamentarians on the government’s reforms and positive global cues. The market indices are trying to break out of a narrow trading zone. If the Nifty rallies higher, the next target would be 6,050. The National Stock Exchange (NSE) witnessed a volume of 84.35 crore shares and an advance-decline ratio of 1021:708.
The market gained in opening trade as the Lok Sabha (Lower House) late Tuesday passed the Banking Laws (Amendment) Bill, 2011, paving the way for overhaul of the banking sector. A positive trend in the Asian markets ahead of the outcome of the Bank of Japan’s two-day policy meeting also supported the gains. Optimism on hopes of a budget deal to avoid higher taxes saw the US markets closing higher on Tuesday.
The Nifty opened 20 points higher at 5,917 and the Sensex resumed trade at 19,430, up 65 points. All-round buying in early trade helped the benchmarks hit their intraday highs. At that point, the Nifty stood at 5,939 and the Sensex rose to 19,516.
Although profit booking at the highs saw the indices pare part of their gains in subsequent trade, they were still in the green on domestic and global support. The market touched its low in noon trade with the Nifty falling to 5,911 and the Sensex went back to 19,420.
The market settled in the green for the second day amid a range-bound session. The Nifty gained 33 points (0.56%) to 5,930 and the Sensex advanced 111 points 0.57%) to settle at 19,476. 
Among the broader indices, the BSE Mid-cap index gained 0.55% and the BSE Small-cap index settled 0.55% higher. 
The top sectoral gainers were BSE Auto (up 1.84%); BSE Healthcare (up 1.58%); BSE Metal (up 1.49%); BSE IT (up 1.33%) and Oil & Gas (up 1.30%). BSE Capital Goods (down 0.62%); BSE Fast Moving Consumer Goods (down 0.38%) and BSE Consumer Durables (down 0.05%) ended up as losers. 
Twenty three of the 30 stocks on the Sensex closed in the positive. The chief gainers were Sun Pharmaceutical Industries (up 3.44%); Tata Motors (up 3.29%); ONGC (up 3.16%); Wipro (up 2.55%) and Jindal Steel & Power (up 2.36%). HDFC (down 1.83%); Larsen & Toubro (down 1.36%); ITC (down 1.18%); ICICI Bank (down 0.89%) and NTPC (down 0.32%) were the main losers on the index.
The top two A Group gainers on the BSE were—Adani Power (up 6.54%) and Federal Bank (up 5.94%).
The top two A Group losers on the BSE were—Gitanjali Gems (down 2.91%) and NHPC (down 2.04%).
The top two B Group gainers on the BSE were—TVS Electronics (up 20%) and Tarapur Transformers (up 19.99%)
The top two B Group losers on the BSE were—Mahanivesh India (down 19.99%) and Niraj Cement (down 19%).
Out of the 50 stocks listed on the Nifty, 40 stocks settled in the positive. The major gainers were Sun Pharma (up 4.47%); Asian Paints (up 3.36%); ONGC (up3.22%); Tata Motors (up 3.17%) and Jindal Steel & Power (up 2.75%). The chief losers were HDFC (down 2%); Axis Bank (down 1.47 %); L&T (down 1.45%); ITC (1.43%) and ICICI Bank (down 0.95%).
The Asian pack closed mostly higher on hopes that the Japanese central bank will continue with its loose monetary policy and announce new reforms to boost the economy. The US optimism also supported the sentiments.
The Hang Seng climbed 0.57%; the KLSE Composite advanced 0.37%; the Nikkei 225 jumped 2.395; the Straits Times added 0.06%; the Seoul Composite gained 0.51% and the Taiwan Weighted settled 0.44% higher. Bucking the trend, the Shanghai Composite lost 0.01% and the Jakarta Composite fell 0.594.
At the time of writing, the CAC 40 of France was up 0.45%; the DAX was up0.37% and UK’s FTSE 100 was 0.62% higher. At the same time, the US stock futures were trading with gains, indicating a firm opening for the US markets later in the day.
Back home, foreign institutional investors were net buyers of shares totalling 922.37 crore on Tuesday while domestic institutional investors were net sellers of stocks amounting to Rs491.12 crore.
Reliance Power said three of its promoters will offload 5.42% stake in the firm in order to comply with the minimum public shareholding norms. Reliance Infrastructure, Reliance Innoventures Pvt Ltd and AAA Project Ventures Pvt Ltd will together sell more than 15.21 crore equity shares, making up about 5.42% stake in the company. Reliance Power declined 0.71% to settle at Rs97.80 on the NSE.
Natco Pharma has received approval from the US Food and Drug Administration for its Abbreviated New Drug Application for Lansoprazole Delayed Release Capsules. The prescription drug is indicated for the treatment of gastric (stomach) ulcers. The stock jumped 4.74% to close at Rs491.25 on the NSE.
Leading non-banking finance company Shriram City Union Finance has got fair trade regulator CCI's approval for a proposed merger of its two group companies through a multi-stage transaction.
As per the proposed transaction, Shriram Enterprise Holdings Pvt Ltd (SEHPL) would be first amalgamated with Shriram Retail Holdings Pvt Ltd (SRHPL) and thereafter the consolidated entity would be merged into Shriram City Union Finance (SCUFL). SCUFL fell 2.24% to close at Rs870 on the NSE.


EPFO puts on hold implementation of its circular on PF

EPFO has kept in abeyance, its circular that seeks to tighten norms for initiation of inquiry against employers in PF cases and clubbing of allowances with basic wages for computing PF contribution

New Delhi: Amid pressure from trade unions, Employees' Provident Fund Organisation (EPFO) has kept in abeyance, its circular that seeks to tighten norms for initiation of inquiry against employers in provident fund (PF) cases and clubbing of allowances with basic wages for computing PF contribution, reports PTI.

"It has been decided to keep the circular in abeyance with immediate effect and till further orders," another EPFO circular to field staff said.

After the controversial circular was issued by the EPFO on 30th November, trade unions had lodged their protest with Labour Ministry, terming it anti-worker.

According to the circular, the inquiry against employers can only be initiated after "actionable and verifiable information" is placed for consideration before the compliance officers.

With regard to the time period for initiating inquiry, it had said, "No inquiry or investigation shall ordinarily go beyond seven years, i.e., it shall cover the period of default not exceeding preceding seven years."

However, in a worker friendly move, the circular also redefined the meaning of "basic wages" for the purpose of provident fund deductions. It said: "All such allowances which are ordinarily, necessarily and uniformly paid to the employees are to be treated as the basic wages."

The employers are also not happy with the EPFO's move to deal with splitting of remuneration by companies which help them to reduce their PF contribution obligation substantially.



jaideep shirali

4 years ago

The recommendation to include allowances along with Basic deserves to be cancelled.The EPFO is struggling to pay interest on existing PF amounts, that too with creative accounting unearthing 'reserves' for the interest.Private sector employees have nothing to gain because the CTC or cost to company will not be changed by employers. As a tax-payer, I find it ridiculous to be asked to pay more for a corrupt and inefficient bureaucracy. Finally, if the concerned court was not aware of the New Pension Scheme, it should have stayed clear of a judgement.

Railways tops in corruption complaints: CVC

During 2011, the CVC received 8,805 complaints of alleged corruption against rail employees followed by 8,430 against bank employees and 5,026 against I-T officials

New Delhi: Railways topped the list of government organisations in 2011 against whom a maximum number of complaints of corruption--nearly 9,000--were received by the Central Vigilance Commission (CVC), reports PTI.


As many as 8,805 complaints of alleged corruption were received against Railways employees followed by 8,430 against bank employees and 5,026 against Income Tax officials, the CVC said in its annual report.


A total of 4,783 complaints were received against personnel in the Government of National Capital Territory of Delhi and 3,921 against employees working under Urban Development Ministry during 2011.


Besides, the CVC has got 2,960 complaints of corruption against employees working under Information and Broadcasting ministry, 1,918 against Department of Telecommunications, 1,877 against Petroleum Ministry officials, 1,544 against Food and Consumer Affairs department and 1,296 against Custom and Excise department among others, the report said.


The CVC, in its report tabled in Parliament recently, also noted delays and deficiencies while processing corruption-related cases by certain government departments involving senior functionaries.


"Delay in processing vigilance cases continues to be a major issue. Delays take place in processing the complaints or cases and also in taking decisions by the competent authorities who, in all cases, are senior level functionaries in the organisations," the report said.


"The Commission has been making constant efforts to sensitise all concerned about the importance of timely and efficient handling of vigilance related matters. However, it has been observed that the organisations continue to be indifferent and apathetic," the report said.


However, the CVC annual report for 2011 did not have any mention of probe related to alleged corruption in Commonwealth Games-related projects.


The probity watchdog also noted that the investigation report in respect of 1,406 complaints forwarded to the Chief Vigilance Officers of the departments concerned, who act as an extended arm of the CVC, were pending with them.


A highest of 182 complaints were pending for investigation and a report with Delhi Government, 156 with Municipal Corporation of Delhi, 49 with Delhi Development Authority, 48 each with Ministry of Defence and Bharat Sanchar Nigam Ltd, and 42 with Department of Secondary and Higher Education among others, it said.


The Commission has received a total of 51,367 complaints of alleged corruption against government officials working in various departments between January and December last year. Of these, 34,380 were disposed and 16,987 were pending with the departments.


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