Regulations
Delhi sets up panel to junk outdated business licenses

The committee, headed by principal secretary, finance, has to do its work by July 31

 

To facilitate ease of doing business in the capital, the AAP government Thursday set up a committee to junk outdated licences.
 
"A committee has been set up to review each and every license to do business. It will also see even if there are some important licences and the clause of their annual renewal can be removed," Deputy Chief Minister Manish Sisodia said here.
 
"There is still a license raj and the Delhi government wants to end it. To do business, small and big traders have to get about 50 licences. And the process of getting these licenses is very difficult" he said.
 
"Even if somebody gets it, it has be renewed annual from various agencies ranging from police to Delhi government's various departments. It's a source of corruption, " he added.
 
The committee, headed by principal secretary, finance, has to do its work by July 31.

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Nifty, Sensex, Bank Nifty will remain weak - Thursday closing report

Nifty shows no sign of strength. Rallies will be sold

 

We had mentioned in Wednesday’s closing report that NSE’s CNX Nifty may make further gains if it manages to stay above 8,090 levels. The index opened in the green and immediately hit the day’s high. This was followed by the 50-stock index making a gradual down move. The benchmark lost 159 points and closed Thursday near the day’s low.
 
The S&P BSE Sensex opened at 26,959.98 and reached the day’s high at 27,000.14. Its day’s low was 26,348.93. The 30-stock benchmark closed 1.75% lower, a fall of 469.52 points to close at 26,370.98, while Nifty closed 1.96% lower at 7,965.35. It opened at 8,157.30 and reached a high of 8,163.05 within the day. Its low for the day was 7,958.25. Bank Nifty closed 2.28% lower at 17.304.40. It opened at 17,819.60 and reached the day’s high at 17,821.90. The day’s low for the Bank Nifty was 17,264.20. NSE volumes were at 81.92 crore shares. India Vix was up 4.25% to close at 17.805.
 
In a filing to BSE, Nestle said, “As part of the efforts to resolve the Maggi noodles issue, Nestle India has approached the Bombay High Court, raising issues of interpretation of the Food Safety and Standards Act 2011 while seeking a judicial review of the order dated 6 June 2015, passed by the Food and Drug Administration (FDA) in Maharashtra and the order dated June 5 passed by FSSAI."
 
"At the same time, we are continuing withdrawal of Maggi noodle products. This action will not interfere with this process," the company added. 
 
Nestle India had to recall the product from the market after several states banned them as tests showed excess amounts of taste enhancer MSG (monosodium glutamate). The Maharashtra government, too, had banned Maggi noodles after some samples were found to contain lead above the stipulated limit.
 
India is on the path to emerge as the fastest growing economy on the World Bank growth chart of major economies for the first time. In its latest report, the Bank expects India to grow at 7.5% in 2015, outpacing China, which is poised to grow at 7.1%. The collapse in commodity prices has been a boon for the country. Concerns over the current account deficit, fiscal deficit and inflation have all dissipated with the fall in oil prices. This, coupled with reforms has raised confidence in the economy adds the report.
 
India's GDP growth is likely to revive to 7.9% in the current financial year and then further up to 8.1% in 2016-17, driven by structural reforms and cyclical easing of the monetary policy, says a Citigroup report. According to the global financial services major, investment and consumption uptick is likely to result in a growth pick-up from 7.3% in 2014-15.
 
Reserve Bank of India (RBI) Governor Dr Raghuram Rajan met Finance Minister Arun Jaitley and discussed macroeconomic issues. "These are all usual meetings which we have. Nothing special. Broad range of issues was discussed. Lot of issues were discussed," Rajan told reporters after the meeting. The meeting comes days after RBI's monetary policy review. "We have voiced whatever we had to say at the monetary policy," Rajan added. On 2nd June, RBI reduced the short term lending rate (repo) from 7.5% to 7.25%.
 
A day after the Union government announced it will provide soft loans worth Rs6,000 crore to sugar mills, ISMA president has said the move will not help the industry. Indian Sugar Mills Association (ISMA) president, A Vellayan said the loans do not address the problem of surplus sugar or depressed sugar prices, which are affecting the industry. "The decision of the government to bear the interest on the loan for just one year as compared to five years in the previous scheme announced in February 2014 is actually not an interest-free loan in the true sense," Vellayan added.
 
The Reserve Bank made a case for developing better strategies to deal with the problem of bad loans as hiding them would aggravate the situation for the banks as well as borrowers. "An account becoming NPA is not a sin. The time has come that it would be a better strategy that if there is a weakness in the account...Rather than postponing, hiding the problem either on the part of banks or borrowers, it is important that the bank recognises NPA then extend a helping hand (to borrowers)," RBI Deputy Governor SS Mundra told reporters.
 
Coming back to the stock markets, National Buildings Construction Corp (NBCC) shares were up nearly 0.82% to close at Rs745.80 on NSE after the company informed that it has signed an agreement with a Malaysian JV. The company in a release said that it has formed strategic partnership by executing Memorandum of Business Education on 10 June 2015 with Malaysian joint venture company China Railway Engineering Corporation (M) Sdn Bhd & Amona Group for exploring further areas of re-development around New Delhi railway station.
 
Shares of FMCG major HUL fell by 0.41% fell to close at Rs817.10 on the NSE, after the company decided to withdraw its range of Knorr instant noodles from the market awaiting product approval from the Food Safety and Standards Authority of India (FSSAI). Meanwhile, the company clarified that the discontinuance of manufacturing and sale of Chinese instant noodles is not based on safety or quality concerns. The FSSAI on Monday had passed an order to test different brands of noodles, pastas and macaronis. The central food safety regulator listed 33 items manufactured by seven companies approved by it in these categories, where HUL's Chinese range of Knorr instant noodles is not listed.
 
Shares of BEML have gained 0.88% to close at Rs1,230 on NSE after winning orders worth Rs645 crore from Delhi Metro Rail Corp (DMRC) for supplying 74 broad gauge coaches. DMRC signed a contract agreement with BEML for design, manufacture, supply testing and commissioning of the coaches.
 
Shares of AstraZeneca Pharma today surged 20% to close at Rs1,145.50 on the NSE, after the company said it has launched diabetes drug Forxiga in the country.
 
Essar Oil gained 12.59% to close at Rs117.60 and was the top gainer for the day on BSE.
 
HCC fell 8.89% to close at Rs20.50 and was the top loser for the day on the BSE.
 
Among Sensex shares, Vedanta was the top gainer, as it rose 1.54% to close at Rs187.70 on the BSE. Similarly, among Sensex shares, Tata Power was the top loser, as it fell 4.88% to close at Rs70.15.
 
Among US indices, NASDAQ Composite rose 1.25% to close at 5076.69. Dow Jones Industrial Average rose 1.33% to close at 18,000.40. 
 
The World Bank on Wednesday cut its global growth outlook for this year and urged countries to "fasten their seat belts" as they adjust to lower commodity prices and a looming rise in US interest rates. Kaushik Basu, the World Bank's chief economist, said the Federal Reserve should hold off on a rate hike until next year in order to avoid worsening of the world economy.
 
Among Asian indices, Shanghai Composite rose 0.3% to close at 5,121.59. Hang Seng rose 0.83% to close at 26,907.85.
 
China has said the Foreign Direct Investment (FDI) to the country jumped 10.5% year on year in the first five months of 2015, settling at $53.83 billion with services industry getting a major chunk of it. The pace slowed from 11.1% increase registered in the January-April period but far exceeded the annual growth rate posted for 2014 of 1.7%, the Ministry of Commerce said. China approved 9,582 new foreign-funded companies in the first five months, up 9.6% year on year. China's ailing economy showed few signs of improvement in May, with factory output steadying but investment growing at its slowest rate in nearly 15 years, pointing to further weakness unless Beijing ramps up its stimulus efforts. A flurry of data from power output to retail sales released on Thursday showed no convincing pick-up in the world's second-largest economy despite three interest rate cuts since November.
 
Among European indices, FTSE 100 rose 0.33% and was around 6,854 in the afternoon. S&P 500 Futures fell 0.09% and was around 2,104.95 in the afternoon.
 
Ratings agency Standard & Poor's downgraded Greece's sovereign rating deeper into junk territory on Wednesday, questioning whether its debt is sustainable after the government delayed a payment to the International Monetary Fund. In a statement, S&P said it had lowered the rating by one notch to CCC from CCC+, saying that as Athens delayed the debt repayment last Friday, the government appeared to be prioritising pension payments and domestic spending over its debt-service obligations. Greece exercised its right to group all its payments to the IMF due in June and pay them before the end of the month.
 

User

Another Rakesh Jhunjhunwala! And a pump and dump operation!
Surana Solar shares jumped 18% after it was reported that ‘Rakesh Jhunjhunwala’ purchased 250,000 odd shares. And then it crashed to its lower circuit next day
 
Retail investors often fall for stock tips or like to take cues from iconic investors like Rakesh Jhunjhunwala. While tracking ace investors may have its own share of risk, acting on information without checking its authenticity can be even worse as we have witnessed recently. Shares of Surana Solar purchased by namesake investor led to high volatility in the scrip. The day after the news of the purchase, the stock went up 18%, before closing at its lower circuit as the true identity of the investor was revealed.
 
On Tuesday, 9 June 2015, several news reports like this one here spread that “Rakesh Jhunjhunwala” bought over 250 thousand shares of Surana Solar at Rs53.74 each. Unfortunately, it was not confirmed at that time whether it was the ace investor himself. As it soon turned out, it was a namesake investor based in Kolkata. The stock was up about 9.1% for most part of the day on 10 June 2015, before turning 20%, hitting its lower circuit, soon after the real identity of the investor was revealed. By the end of the trading, 58 lakh Surana Solar shares had changed hands on the NSE, compared with a daily average of just over 1.41 lakh shares last week.
 
 
On 11 June 2015, the stock hit its lower circuit once again and closed at Rs35.80, down 20%. This was 43% down from its peak of Rs63.10 on 10 June 2015. 
 
Was the intention to mislead and was it a case of a deliberate pump and dump of the stock? Surana Solar is an India-based solar company which is engaged in manufacturing solar energy systems with the focus on solar photovoltaic (SPV) modules. As it was later revealed, a Kolkata-based client of Rajkot-based Sun Flower Broking, Rakesh Jhunjhunwala, had purchased the shares.
 
It looked like this was planned, as on 8 June 2015 too, the namesake investor had bought 250,000 shares, but squared off on the same day. This did not seem to get any attention, but when the long position was taken on 9 June, that was when the other investors caught on. Was the intention to make the stock price to surge so that he could dump a large quantity on the hapless punters. Whether the namesake investor exited or not and at what price remains a mystery. Will the regulator investigate? 
 

User

COMMENTS

shanti Patel

1 year ago

SEBI has taken note of our EMAIL. and taken appropriate action.

Shanti k.Patel
Hon.Joint Secretary-Bombay Shareholders Association

Krishnan Venkat Subramanan

1 year ago

x
even the news channels aired an interview with the chief executive of surana solar and he projected a rosy picture.

shanti Patel

1 year ago

Prima-facie it appears that it was a well plan well thoughtful plan.
This is a perfect case to be investigated by SEBI.

Shanti K Patel
Hon. Jiont Secretary- Bombay Shareholders Association

REPLY

ms

In Reply to shanti Patel 1 year ago

hello sir,

I am one of the victims suffering huge loss from surana solar share..
any action taken by sebi?

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