Strong resistance is pegged in the 5,385-5,425 points range and unless and until this is taken out the bulls would continue to be under pressure. One should persist with the strategy of selling in rallies especially close to the above mentioned area
S&P Nifty close: 5278.20
1. The Nifty failed to close above the pivot last week which resulted in further bull liquidation.
2. Weekly averages still continue to be negatively phased hence a dip below these would result in the selling pressure accentuating.
3. Unless and until the previous week’s high (5,385) is taken out in close the bears will hold the edge and a break of the recent low of 5,171 points would set the cats amongst the pigeons.
Strong resistance is pegged in the 5,385-5,425 points range and unless and until this is decisively taken out the bulls would continue to be under pressure. One should persist with the strategy of selling in rallies especially close to the above mentioned area. A breach of the recent low of 5,171 points would spell more trouble for the bulls taking the Nifty down to 4,986 or 4,811 points in the weeks ahead.
(Vidur Pendharkar works as a consultant technical analyst & chief strategist at www.trend4casting.com)
“With declined risk pool system, companies would be better placed to manage the risks of their motor policy accounts. So, the loss incurred in the commercial vehicle third party space should come down,” chief financial officer of ICICI Lombard, Gopal Balachandran said
Mumbai: The Insurance Regulatory and Development Authority’s (IRDA) decision to implement “declined risk pool system” for third party motor insurance is likely to reduce the losses incurred in this space, reports PTI quoting officials of various general insurance companies.
“With declined risk pool system, companies would be better placed to manage the risks of their motor policy accounts. So, the loss incurred in the commercial vehicle third party space should come down,” chief financial officer of ICICI Lombard, Gopal Balachandran told PTI here.
He also said that though loss ratio in the commercial vehicle insurance space should reduce in the future, the quantum of decrease would depend on the price correction expected in the next fiscal in the motor insurance premium.
Declined motor pool is the arrangement in which insurers would have the right to refuse or decline vehicle insurance and these vehicles will be insured from the pool shared by insurers.
Presently all commercial third party premium are pooled and losses on account of the commercial third party motor portfolio are shared among all general insurance players according to market share.
Currently, the loss ratio stands at 145% in the motor insurance space or companies incur a loss of Rs45 for every Rs100 premium earned in a policy.
On Thursday, IRDA came up with guidelines for implementation of declined risk pool system, in which it said that this system would only be applicable to standalone third-party liability insurance.
As per the notification, no comprehensive motor insurance policy can be settled from the pool, which will reduce the overall corpus of the third party pool.
Referring to third party pool corpus, Mr Balachandran said that it should be reduced to 25% in the next fiscal from its present size of around Rs6,000 crore.
Other industry officials also echoed similar sentiment.
“We hope that losses incurred in the motor insurance space by general insurance companies will be reduced due to declined risk pool system with prudent underwriting practices,” managing director and chief executive officer of Bharti AXA General Insurance, Amarnath Ananthanarayanan said adding it would help in better claim settlements in motor insurance space.
According to the regulator, the insurance companies would now need to retain 20% of the gross premium in their accounts, give 10% to General Insurance Corporation of India and rest 70% would go to the motor pool.
Referring to this new system, chief executive officer of L&T General Insurance, Joydeep Roy said declined pool is likely to reduce the loss ratio and bring more transparency into the system.
The government had offered 34 areas for exploration and production of oil and gas in the 9th round of bidding under NELP and bids for received for 33 had been received at the close of bidding on 28th March last year
New Delhi: The government Friday approved the award of less than half of the 33 oil and gas blocks that were bid for in the ninth round of New Exploration Licensing Policy (NELP), reports PTI.
The Cabinet Committee on Economic Affairs (CCEA) approved award of 16 blocks, oil minister S Jaipal Reddy told PTI here.
“Bids 16 blocks were recommended for acceptance by the Empowered Committee of Secretaries, the same has been approved by CCEA,” he said.
The government had offered 34 areas for exploration and production of oil and gas in the 9th round of bidding under NELP and bids for received for 33 had been received at the close of bidding on 28th March last year.
In the previous eight rounds of NELP, 235 blocks have been awarded so far.
The 34 exploration blocks offered in NELP-IX included eight deepwater blocks, seven shallow water blocks, 11 on-land blocks, and 8 Type-S (or small) on-land blocks, he said.
Sources said some blocks in Mahanadi basin off the Orissa coast in east India had to be withdrawn as they fell in Naval firing/exercise areas while bids for several others had to be rejected due to various reasons.
The CCEA approved award of two shallow water and two onland blocks to consortia led by ONGC (Oil and Natural Gas Corporation). State-owned OIL led consortia got two onland blocks in the Assam-Arakan basin. Deep Energy walked away with two Cambay basin blocks while Focus Energy beat Reliance Industries to bag an area in north-west Indian Rajasthan state.
The five blocks awarded to companies like Sankalp Oil and Natural Resources, Pratibha Oil and Natural Gas Pvt Ltd and Pan India Consultants.
Sources said the ECS had recommended rejection of single bids for eight blocks where profit petroleum offered to the government ranged between 6.6% and 6.7%.
ECS suggested rejecting bids by Reliance Industries and state-owned ONGC for the Andaman sea block as they had offered “very low” profit share to the government.
It also wanted the bid by a consortium of ONGC-OIL and GAIL for deepsea block GS-DWN-2010/1 and that of ONGC-OIL-BPRL for Kerala-Konkan deepwater block KK-DWN-2010/1 also rejected as they offered very low profit share.