Citizens' Issues
Fake bail bond scam: CBI files charge-sheet against 12 RPF personnel

The CBI, after being pulled up by the Bombay High Court on several occasions for its slow probe, has finally filed a charge-sheet against 12 RPF personnel in the fake bail bond scam at Kurla station

The Central Bureau of Investigation (CBI) on Monday informed the Bombay High Court that it has filed a charge-sheet against 12 personnel from the Railway Protection Force (RPF) in the fake bail bond scam.


A division bench of justices AM Khanwilkar and KK Tated was hearing a public interest litigation (PIL) filed by social activist Samir Zaveri alleging that certain RPF personnel were releasing persons booked for trespassing and crossing railway tracks on fake cash bail bonds.


In August 2011, the high court transferred investigation in the case to CBI following allegations of shoddy probe by the Government Railway Police (GRP).


The CBI told the HC that it has evidence against 27 persons and had applied for sanction to prosecute the remaining 15. After obtaining the sanction, the CBI said it would file a supplementary charge-sheet against these 15 persons.


Last month, additional solicitor general Kevic Setalvad, appearing for the CBI, told the court that the  investigating agency has sufficient evidence against nine officials who are the main accused and out of the nine, it needed sanction for prosecution from the government for five officers.


In his PIL, Zaveri had alleged that a head constable acted as a magistrate and granted bail to the alleged offenders and the money collected was misappropriated by the RPF personnel themselves.


FII holdings in Indian equities at an all-time high

FIIs poured as much as $8.4 billion into Indian equities in the third quarter and much of it into banking and financial sectors

Foreign Institutional Investors (FIIs) have been pumping money into the Indian stock market as if there is no tomorrow. According to Edelweiss, FII holdings in the BSE100 companies is estimated now at 19.7%, an all-time high after they poured in as much as $8.4 billion in the third quarter of the current fiscal (compared to $8.1 billion in the previous quarter). In fact, in the current quarter, FIIs have estimated to have already invested $7.1 billion, which is near the last quarter amount. Some of the top stocks held by FIIs are HDFC, NMDC, HDFC Bank while they sold Cairn India, DLF and United Phosphorus. FIIs are also bullish on the financial sector.

“We have extended the exercise to gauge which stocks have attracted highest buying or selling by FIIs. Banks remain a clear preference for FII buying. Four out of the top five FII buys are banks. Government divestment in NMDC also attracted good traction resulting in $472 million inflows into the stock. Cairn India was the top FII sell. The Robert Vadra scam resulted in FIIs selling $67 million from DLF,” the report said.

The BFSI segment which comprises of financial institutions and banks was lapped up the most by FIIs. As much as 41% of all the money invested in the third quarter went to this sector. As mentioned above, the top four out of five picks were financial institutions. Edelweiss said, “We do not have SEBI data for FII flows into various sectors for Q3FY13, but our estimates indicate that majority of FII flows were garnered by the banking sector, in continuation of the Q2FY13 trend.


Several reasons cited by Edelweiss are the theme that has been oft repeated by several other brokers: the government’s reforms push, the Reserve Bank of India (RBI) rate cuts as well as quantitative easing by central banks world over. This resulted in massive influx of so called “easy money” which found its way to India. However, if we compare the cumulative inflows in relative to other emerging economies, the findings are alarming. Is there a bubble brewing? Take a look at the graph below:

One of the more discerning aspects of FII inflows has been, according to Edelweiss, their focus on increasing ‘beta’ in their portfolio. In other words, their portfolio has just got riskier and more volatile, by investing more in BFSI (which is uncertain), autos (which is going through a hard time) and information technology (rupee-dollar uncertainty continues). The report said, “What’s more interesting is the increase in beta of FII portfolios, with utilities and autos gaining traction. As a result, the relative positioning of BFSI, autos, utilities, capital goods and materials increased during the quarter. This was funded by reduction in relative positioning in consumers and IT.” Beta refers to the individual stock movement in relation to the market. The higher beta stocks are more volatile, implying that quick money could be made on short spurts in momentum, and vice versa.

Their addition of ‘beta’ to their portfolio meant that they were overweight on banks & financial institutions, information technology and auto, while remaining underweight capital goods, energy and consumer goods. If we look closely, this seems to be more of a directional bet, based on recent actions of the government, than a bet on India’s long-term growth story.

For commentary about Indian markets, check this page.



Nem Chandra Singhal

4 years ago

So it is good that India is getting FII money ( or dollars). No one is complaining. What will happen when FII will exit Indian market. Please analyse it also. Thanks.


Suiketu Shah

In Reply to Nem Chandra Singhal 4 years ago

Exactly.Also retail investor confidence of Indian citizens is at all time low.Seems the market might drastically fall after budget 2013 by 2000 points off the bse for 2-3 months.Right time then to buy good blue chip stocks like RIl,TCS,ICICI bank.

Nifty, Sensex trying to find a footing: Monday Closing Report

If the Nifty is able to rally from this level, it may head for 5,960

The market continued its losing streak into the new week on lack of cues from Asia and on concerns about the nation’s economic growth. However, if the Nifty is able to rally from this level, it may head for 5,960. The National Stock Exchange (NSE) reported a volume of 51.46 crore shares and advance-decline ratio of 622:897.


The market opened with minor gains on cautiousness ahead of the release of key macro-economic indicators this week. In global trade, most markets across are shut for the Chinese Lunar New Year holiday, and that which was open was up. The US markets witnessed a strong close on Friday on positive economic indicators.


The Nifty opened 16 points higher at 5,920 and the Sensex started off at 19,518, a rise of 33 points over its previous close. Early gains helped the market hit its intraday high, wherein the Nifty touched 5,924 and the Sensex went up to 19,543.


However, the gains were short-lived as profit booking soon saw the benchmarks trending down. The market was range-bound with the key indicators hovering on both sides of their previous closing levels in subsequent trade.


Meanwhile, MCX Stock Exchange’s (MCX-SX) benchmark index SX40 went live with its equity trading platform on both the equities and equity derivatives today. MCX-SX became India’s third full-fledged equity bourse after the BSE and the NSE.


The market dipped to its lows shortly after 11.00am with the Nifty falling to 5,879 and the Sensex moving back to 19,417. Buying in select sectors in non trade lifted the benchmarks into the green, lack of cues from its Asian peers kept a cap on the gains.


Adding to the economic fears, Reserve Bank of India governor Duvvuri Subbarao today cautioned the country was headed for the highest ever current account deficit (CAD) this fiscal, after it rose to 5.3% of GDP in the second quarter. He also expressed concern over the way the CAD, which is the gap between forex gained and forex spent, is being financed by volatile inflows instead of more foreign direct investments.


Lacklustre trade continued in the late session as the benchmarks once again gave up their gains. The market witnessed another of subdued trade with the Nifty closing six points (0.10%) down at 5,898 and the Sensex falling 24 points (0.12%) to 19,461.


Among the broader indices, the BSE Mid-cap index fell 0.18% and the BSE Small-cap index declined 0.31%.


The top sectoral gainers were BSE Realty (up 0.91%); BSE Healthcare (up 0.74%); BSE PSU (up 0.47%); BSE Bankex (up 0.34%) and BSE Power (up 0.29%). The main losers were BSE Capital Goods (down 0.81%); BSE TECk (down 0.43%); BSE IT (down 0.33%); BSE Fast Moving Consumer Goods (down 0.31%) and BSE Oil & Gas (down 0.18%).


Thirteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Cipla (up 3.62%); Dr Reddy’s Laboratories (up 2.45%); Hindalco Industries (up 2.14%); Sterlite Industries (up 2.07%) and Hindustan Unilever (up 1.88%). The major losers were Maruti Suzuki (down 1.64%); ONGC (down 1.61%); Jindal Steel & Power (down 1.60%); Bharti Airtel (down 1.57%) and HDC (down 1.27%).


The top two A Group gainers on the BSE were—MMTC (up 18.96%) and Hindustan Copper (up 10.48%);

The top two A Group losers on the BSE were—Cadila Healthcare (down 6.43%) and AstraZeneca Pharma India (down 6.36%).


The top two B Group gainers on the BSE were—State Trading Corporation (up 19.98%) and Panama Petrochem (up 17.37%).

The top two B Group losers on the BSE were—Cochin Minerals & Rutile (down 19.98%) and Crest Animation Studios (down 19.98%).


Out of the 50 stocks listed on the Nifty, 23 stocks settled in the positive. The major gainers were Cipla (up 3.66%); Axis Bank (up 3.04%); Hindalco Ind (up 2.60%); Tata Motors (up 2.40%) and Dr Reddy’s (up 2.24%).  The key losers were ACC (down 3.70%); JSPL (down 2.57%); IDFC (down 2.26%); Maruti Suzuki (down 1.99%) and ONGC (down 1.91%).


In Asia, the Jakarta Composite gained 0.27% Markets in Japan, South Korea, China, Hong Kong, Singapore and Malaysia were closed for national holidays.


At the time of writing, the key European indices were up between 0.18% and 0.54% and the US stock futures were trading in the positive, an indication of a green opening for US stocks.


Back home, foreign institutional investors were net buyers of equities totalling Rs1,490.82 crore on Friday and domestic institutional investors were net sellers of shares aggregating Rs709.36 crore.


Provident Housing, the wholly-owned subsidiary of real estate developer Puravankara Projects, is planning to enter the Mangalore market. The Bangalore-based company is set to launch a property at Derebail, near Konchady in Mangalore. The realty major is also planning to similar initiatives in Mumbai, Delhi, Hyderabad, Coimbatore, Mysore, Pune, Baroda, Ahmadabad, Kolkata, Nagpur and Jaipur. Puravankara dropped 3.08% to close at Rs96 on the NSE.


Shree Renuka Sugars has signed an agreement with Sri Lanka’s state investment arm, Board of Investment, for setting up a $220-million sugar refinery complex at Hambantota in the South. The proposed project plans to bring inedible raw sugar from Brazil in bulk and add value locally by refining it in the complex. The stock declined 1.57% to close at Rs28.20 on the NSE.


Reliance Communications has awarded a $1 billion outsourcing contract to Swedish telecom equipment maker Ericsson to manage its networks across the northern and western states. Under the eight-year contract, Ericsson will operate and manage both the wireline and wireless networks in the northern and western States of India. Reliance Communications fell 0.47% to close at Rs74.90 on the NSE.


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