Nifty should close above 6,250 for the first sign that the downtrend has been arrested
On Thursday we mentioned that the market headed for a bigger fall unless the Nifty manages to break through the level of 6,270. On Friday the index traded well below this level. We expect the indices to continue to move down. If Nifty closes above 6,250, it would the first sign that the downtrend has been arrested.
Although the market closed Friday flat with a slight negative bias, the indices opened with a gap down. The Sensex opened down 69 points at 20,820 while the Nifty opened 27 points down at 6,195. The Sensex moved in the range of 20,731 to 20,885 while the Nifty moved in the range of 6,171 to 6,222. The benchmarks closed almost near the day’s high. Sensex closed at 20,851 (down 37 points or 0.18%) while the Nifty closed 6,211 (down 10 points or 0.16%). The NSE recorded a lower volume of 64.25 crore shares.
Among the other indices on the NSE, the top five gainers were IT (2.06%); Smallcap (1%); Realty (0.98%); Media (0.61%) and Service (0.60%). The top five losers were Energy (1.54%); PSE (1.51%); Infra (1.40%); Commodities (1.25%) and Metal (1.19%).
Of the 50 stocks on the Nifty, 22 ended in the green. The top five gainers were Ranbaxy (4.02%); Lupin (3.20%); TCS (2.63%); Infosys (2.32%) and Maruti (2.18%). The bottom five losers were Tata Power (3.95%); M&M (3.73%); BPCL (2.71%); Tata Motors (2.51%) and Bhel (2.30%).
Of the 1,230 companies on the NSE, 624 closed in the green, 554 closed in the red while 52 closed flat.
Today the market awaited the prime minister Manmohan Singh scheduled meet to address several issues including list the achievements of the UPA government in the last 10 years. Apart from the mention of the Government continuing effort to implement policies to revive growth, eliminate poverty and ensure the safety and security of all people, the prime minister also admitted its poor success rate in generating employment in the manufacturing sector and concern over its failure in controlling persistent inflation. He also said he would "hand the baton over to a new prime minister," after general elections this year, ruling out a third term.
US indices closed in the negative on Thursday. Manufacturing activity in the US expanded in line with expectations in December, holding near the fastest rate since April 2011, industry data showed on Thursday. US ISM manufacturing PMI inched down to 57.0 in December from 57.3 in November. The new orders index increased in December by 0.6 points to 64.2, the highest since April 2010. The employment index registered 56.9, an increase of 0.4 points compared to November's reading of 56.5. December's employment reading is the highest since June 2011 when the employment index registered 59.0.
Except for NZSE 50 (up 0.68%) all the other trading Asian indices closed in the negative. Hang Seng was the top loser, down 2.24%. European indices were trading in the green while the US Futures were trading marginally in the green. Euro zone manufacturing grew at the fastest rate since mid- 2011 in December on brisk business in Germany and Italy, Markit purchasing managers' indexes (PMIs) showed. In Germany manufacturing grew at its fastest pace since mid-2011, with its PMI rising to 54.3 from 52.7.
BG Srinivas and UB Pravin Rao in their new role as president at Infosys will focus on global markets, delivery and service innovation
Infosys Ltd on Friday appointed BG Srinivas and UB Pravin Rao as the presidents of the company with immediate effect. Both the presidents will report to SD Shibulal, chief executive officer and managing director.
In a statement, Infosys said its business portfolios will be realigned under the two presidents. BG Srinivas will focus on global markets while UB Pravin Rao will focus on global delivery and service innovation.
Infosys also said, the executive council as a forum, will discontinue with effect from 1 April 2014.
During last quarter Infosys have seen reshuffling of its management which follows several senior-level departures from the IT company since its founder, NR Narayana Murthy, returned in June 2013.
On 20 December 2013, V Balakrishnan, head of Infosys BPO, Finacle, India Business Unit, as well as chairman of Infosys Lodestone, resigned from Infosys. He was with Infosys Ltd since 1991.
On 19 December 2013, senior vice president and a member of Infosys' Executive Council Subrahmanyam Goparaju also resigned from Infosys.
During the same period, Infosys also announced the induction of Kiran Mazumdar-Shaw as an independent member of the Board, while UB Pravin Rao was inducted as a whole-time director.
Infosys closed Friday 2.61% higher at Rs3565.45 on the BSE, while the 30-share BSE S&P Sensex ended marginally down at 20,851.
BSNL declared 31st December and 1st January as blackout days for voice calls and reportedly collected more than double charges from its prepaid subscribers in Karnataka
State run telecom giant Bharat Sanchar Nigam Ltd (BSNL) has found a new and innovative formula to earn more revenues from its customers, especially pre-paid mobile subscribers. BSNL has informed its pre-paid subscribers from Karnataka circle that they would not get free or discounted rates for voice calling on 31st December and 1st January.
Most of the mobile operators declare certain days like New Year's eve and 1st January, and festivals like Diwali and Dussehra as blackout day for sending messages. This means, all messages sent on blackout days are charged at normal rates or at a higher rates, irrespective of the billing plan or special tariff vouchers (STVs) purchased by the subscriber.
Gopinath P, one of the readers of Moneylife said, "If you have purchased an Rs44 STV by virtue of which your outgoing call are to be charged at 0.6 paisa per second (or 36 paisa per minute) for 30 days. However as per the new diktat from BSNL, you will now be charged 1.5 paisa per sec (or 90 paisa per minute) on 31st December and 1st January. A 2.5 times hike for just two days and BSNL also gets to pocket the money paid for the STV."
The idea of declaring blackout days came into existence following unprecedented surge in traffic volumes, especially for SMS. In order to avoid network jams, mobile operators decided to charge more for sending SMS on these special days.
However, with more and more people using social networking apps, like Whatsapp, WeChat and Skype to send and receive messages and greetings, mobile operators are unable to earn money on these blackout days. Something like this may have prompted BSNL to come out with the idea of increasing call charges on 31st December and 1st January.
"On the lighter side however there is a silver lining, government companies can think out of the box indeed...Hats off to BSNL for this 'topi pahnanewala' scheme," Mr Gopinath concluded.