BSE Sensex, Nifty uptrend still not broken: Monday Closing Report

Watch out for a close below today's low for the first sign of weakness

The market settled flat amid a choppy and range-bound session on new worries from Europe and the absence of any domestic triggers. Today the Nifty moved in a narrow range of 5,888 and 5,920 and ended flat. For the first time in the past 10 trading days (including today) the index made both a lower high and lower low. A close below today’s low would indicate the first sign of weakness. The National Stock Exchange (NSE) saw a volume of 68.83 crore shares and an advance-decline ratio of 913:884.
The market opened with minor gains supported by the Asian markets which were mostly higher in morning trade on positive economic data from China. Hopes of rate cut by the Reserve Bank of India (RBI), in its policy review due on 18th December, also aided the upmove.
The Nifty opened nine points up at 5,916 and the Sensex started the week at 19,442, a gain of 18 points over its previous close. Profit booking, amid choppy trade, soon pulled the indices into the negative.
However, buying in select stocks led the market into the green and to its intraday high around 10.30am. At the highs, the Nifty crawled to 5,920 and the Sensex touched 19,478. But continued volatility and selling pressure kept a cap on the gains.
The market dipped into the red in noon trade on selling in oil & gas, consumer durables and technology stocks. A lower opening of the key European indices weighed on investor sentiment in the post-noon session. The losses saw the indices dropping to their lows at around 2.00pm wherein the Nifty touched 5,888 and the Sensex fell to 19,362.
The benchmarks continued to witness lacklustre trade in the remaining part of the trading session in the absence of any domestic triggers. 
The market witnessed a flat close with a mixed bias with the Nifty adding 2 points at 5,909 and the Sensex slipping 14 points to settle at 19,410.
The broader indices outperformed the Sensex as the BSE Mid-cap index gained 0.65% and the BSE Small-cap index rose 0.32%.
The top sectoral gainers were BSE Realty (up 1.10%; BSE Healthcare (up 0.89%); BSE Bankex (up 0.31%); BSE Fast Moving Consumer Goods (up 0.24%) and BSE PSU (up 0.19%). The main losers were BSE Consumer Durables (down 1.52%); BSE TECk (down 0.90%); BSE IT (down 0.89%); BSE Oil & Gas (down 0.72%) and BSE Capital Goods (down 0.33%).
Thirteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were HDFC (up 3.15%); Dr Reddy’s Laboratories (up 2.51%); Cipla (up 1.73%); Tata Steel (up 1.35%) and Sun Pharmaceutical Industries (up 1.10%). The key losers were TCS (down 2.50%); NTPC (down 1.91%); Bharti Airtel (down 1.46%); Maruti Suzuki (down 1.13%) and Mahindra & Mahindra (down 0.90%).
The top two A Group gainers on the BSE were—Mahindra & Mahindra Financial Services (up 5.66%) and Oriental Bank of Commerce (up 5.33%). 
The top two A Group losers on the BSE were—Pantaloon Retail India (down 5.12%) and Titan Industries (down 3.56%).
The top two B Group gainers on the BSE were—Radaan Mediaworks India (up 20%) and Revathi Equipment (up 19.99%).
The top two B Group losers on the BSE were—Ashika Credit Capital (down 15.51%) and Elantas Beck India (down 12.13%).
Out of the 50 stocks listed on the Nifty, 23 stocks settled in the positive. The major gainers were Bank of Baroda (up 4.11%); HDFC (up 3.71%); Dr Reddy’s Labs (up 3.02%); Punjab National Bank (up 2.35%) and Reliance Infrastructure (up 2.04%). The main losers were TCS (down 1.99%); Cairn India (down 1.88%); NTPC (down0.185%); Bharti Airtel (down 1.52%) and IDFC (down 1.45%).
Markets in Asia closed mostly higher on optimism of a recovery in the global economy on the back of positive data from China and the US. Chinese exports surged 2.9% in November from a year earlier compared with an 11.6% increase in October. Industrial production climbed 10.1% y-o-y in November from and retail sales growth accelerated to 14.9%, while inflation was 2%. This apart, as per the US non-farm payrolls report, the employers added 146,000 new jobs last month while the unemployment rate dropped to 7.7%, its lowest level since December 2008.
The Shanghai Composite surged 1.07%; the Hang Seng gained 0.39%; the Jakarta Composite rose 0.28%; the KLSE Composite climbed 0.89%; the Nikkei 225 added 0.07% and the Straits Times settled 0.23% higher. The Taiwan Weighted lost 0.43% and the Seoul Composite ended flat with a loss of 0.03 points.
At the time of writing, the key European indices were trading down between 0.31% and 0.75% and the US stock futures were in the negative, indicating a negative opening for the US markets.
Back home, foreign institutional investors were net buyers of stocks totalling Rs648.05 crore on Friday while domestic institutional investors were net sellers of shares amounting to Rs798.48 crore.
Engineering, procurement and construction major KEC International, an RPG Group company, today said it has secured orders worth Rs612 crore in last one month from various customers across the world. The orders comprise various business segments, including transmission, power systems, cables and water businesses. The stock declined 0.53% to close at Rs65.60 on the NSE.
Public sector defence major Bharat Electronics on Monday said the company has signed a Memorandum of Understanding (MoU) with Israel Aerospace Industries. According to the MoU, both the partners will work together on the future of Long Range Surface to Air Missile (LR-SAM) ship defence system projects. BEL gained 0.32% to settle at Rs1,200 on the NSE.
Diversified global conglomerate Punj Lloyd Group today said it has bagged a contract worth Rs 528 crore in Singapore to construct a new prison headquarter. The project is expected to be completed over a period of 24 months. When completed, the headquarters will provide office facilities, a multi-purpose hall, club house and an auditorium. The stock climbed 1.58% to close at Rs61.15 on the NSE.



Can the rally in the stock market be sustained?

Foreign inflows have pushed the market up by 25%. However, there is no evidence of investment picking up any time soon, according to the latest Espirito Santo Securities report

Foreign institutional investors have been betting their money on Indian equities, pushing up BSE benchmark Sensex by about 25% for CY2012, on the back of a slew of economic reforms initiated by government. The reform measures by the Indian government have been rewarded by foreign portfolio flows of $20.51 billion this year. “A 25% jump in the Sensex clearly needs more than stabilization at anaemic levels for the rally to be sustained and built on. Given an increasingly stretched consumer and a government under fiscal pressure, all bets are on a turn in the investment cycle”, says the latest report from Espirito Santo Securities.

This has been the second highest net inflow by foreign institutional investors (FIIs) in a single calendar year. In 2010, overseas investors had made net investments of about $29 billion. FIIs, a major participant in the Indian stock market, had pulled out $ 358 million in 2011. In the last five months (July 2012-November 2012) FIIs have put in $11 billion whereas domestic institutional investors have withdrawn $5 billion. But has the incessant buying by FIIs led to equities being overbought?

Whether the current momentum can be sustained is dependent on whether there will be rate cuts in January, and that the recent policy frenzy and focus on PMO project clearances will mean fresh investment and announcements of new projects. However, the research firm, Espirito Santo Securities, does not expect the investment turning anytime soon. “The fall in new project announcements have picked up pace again, and there is weakness across sectors, in particular power which has seen a rise in shelved and stalled projects. Falling interest rates clearly help, but more concrete measures from government are also needed,” they mention in the report. Also, implementing the National Investment Board (NIB) is important, as it should speed up stalled projects above Rs10 billion in roads, mining, power, petroleum, natural gas, ports and railways, through improving inter-ministerial coordination and some centralization of project approvals, the report mentions.

As far as GDP growth is concerned the research firm does not have high expectations. “While broad indicators suggest stabilization at current low levels, we do not expect a sharp rebound in GDP. We keep our GDP forecast at 5.6% y-o-y (year on year) in FY2013 and expect the RBI (Reserve Bank of India) to cut the Repo rate in January 2013,” says the report. Inflation for the month of October eased slightly to 7.45%, much lower than consensus estimates, core WPI inflation decelerated to 5.2% in October from 5.6% in September. Food inflation declined to an eight-month low at 7.7%. On the back of easing inflation and sluggish growth, the firm expects that RBI would cut rates by 50-75 basis points in 4QFY13E.

Leading brokerage firm Goldman Sachs sees growth picking up gradually to 6.5% in 2013 and further to 7.2% in 2014. On the other hand, Credit Suisse holds a negative stance cutting its FY13 growth estimate to 5.9% from 6% citing the delay by the RBI in cutting rates to support growth.

To read more stock market news and analysis on Moneylife, click here.


Government asks taxpayers to disclose true income or face action

I-T department said it has information that 33.83 lakh people made cash deposits of Rs10 lakh or more in savings bank account while during assessment year 2012-13, only 14.62 lakh assesses, including professionals and companies, have declared taxable income of over Rs10 lakh

New Delhi: In a stern warning to tax evaders, the Indian government on Monday warned them to either disclose their correct income and pay advance tax by 15th December or be prepared to face action, reports PTI.
"Government would urge all assessees to disclose their true income. There is no advantage in suppressing the true income or avoiding paying income tax that is due", Indian Revenue Secretary Sumit Bose told reporters.
Regretting that there was "gross-understatement" in filing of advance tax by assessees, he said, "sooner than later, the information available with the income tax department will lead the department to the doors of such persons." 
Bose said that during assessment year 2012-13, only 14.62 lakh assessees including professionals and companies have declared their taxable income of over Rs10 lakh, adding "any fair minded person will agree that this is a gross under- statement." 
The direct tax collection during April-October worked out to be Rs3.02 lakh crore, showing an increase of 6.59% as against the annual growth target of 15%. The government proposes to collect Rs5.70 lakh crore from direct taxes, which include income tax, corporate tax and wealth tax, this fiscal. 
Bose said the I-T department has information that 33.83 lakh persons made cash deposits totalling Rs10 lakh or more in the savings bank account.
Also 16 lakh persons made payments of Rs2 lakh or more against their credit cards and over 11.91 lakh people decided to purchase or sell house property worth Rs30 lakh or more.
15th December is the last date for paying the third instalment of advance tax for corporates and the second instalment for all other assesses.
"For assesses who have not yet paid the correct advance tax, there is an opportunity to rectify the mistake and pay the advance tax by 15th December," Bose said.
Soon after assuming charge of the Ministry, Finance Minister P Chidambaram had made a statement regarding taxation and tax administration.
He had emphasised on clarity in tax laws, a stable tax regime, a non-adversarial tax administration, a fair mechanism for dispute resolution and an independent judiciary that will provide great assurance to investors.
Asking assessees to pay advances taxes by due date, Chidambaram had said: "paying taxes is a mark of civilisation.
If I pay more taxes, I should be more happy and more proud. I am making more money and I am paying more taxes".



Pradeep R Hattangadi

4 years ago

First start with the Politicians.


4 years ago

How much a favour cost in the IT deptt.? If the deptt are in possession of the info., let them go ahead instead of giving threats. In any case, action will not be taken against those powerful people who have been stashing their funds abroad and continue unabated to do so. If the deptt were serious, AND FREE TO ACT TOO, action would have long bee taken and not one single case would have been time barred.

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)