The upmove may continue if the Nifty closes above 5,830
The domestic market surged nearly 2% on hopes that the Reserve Bank of India (RBI) will cut rates in its mid-quarter policy review on Monday. The upmove may continue if the Nifty closes above 5,830. The National Stock Exchange (NSE) witnessed a turnover of 53.01 crore shares and advance-decline of 952:441.
The market opened in the positive on supportive cues from the Asian markets, which were in the green in early trade today. The Asian pack was trading higher as optimism from the US eased fears of the US Federal Reserve tapering its stimulus. Investors were focussed on the release of WPI inflation data later in the day for further direction to the market.
The Nifty opened 50 points higher at 5,749 and the Sensex started off at 18,960, a surge of 133 points over its previous close. The indices touched their lows in initial trade itself with the Nifty falling to 5,739 and the Sensex going back to 18,952.
Buying support from consumer durables, auto, realty and capital goods stocks soon saw the benchmarks gaining momentum and heading northward. A dip in the headline inflation in May to 4.70% from 4.89% in the previous month continued to boost investor sentiment in the noon session.
The benchmarks extended their gains in late trade on support from rate-sensitive sectors on hopes that the RBI will cut rates on Monday to spur growth. The market hit its high in the last hour of trade on help from Reliance and Tata Motors, which gained over 2% and 4%, respectively. The Nifty rose to 5,819 and the Sensex climbed to 19,213 at their respective highs.
The market snapped its three-day losing streak and settled with gains of nearly 2% on hopes of a rate cut on Monday. The Nifty gained 109 points (1.92%) to 5,808 and the Sensex jumped 351 points (1.86%) to settle at 19,178.
The broader indices also ended in the positive. The BSE Mid-cap index rose 1.19% and the BSE Small-cap index rose 1.03%.
All the sectoral indices ended in the positive. Among the top gainers were BSE Consumer Durables (up 3.52%); BSE Auto (up 3.01%); BSE Realty (up 2.86%); BSE Metal (up 2.50%) and BSE Capital goods (up 2.37%).
Out of the 30 stocks on the Sensex, 26 settled higher. The top gainers were Hindalco Industries (up 7.07%); Tata Motors (up 4.91%); Maruti Suzuki (up 4.09%); Tata Power (up 3.72%) and L&T (up 3.41%). The losers were Wipro (down 0.71%); Hero MotoCorp (down 0.41%); Cipla (down 0.24%) and Hindustan Unilever (down 0.24%).
The top two A Group gainers on the BSE were—Jet Air India (up 8.47%) and JSW Energy (up 7.95%).
The top two A Group losers on the BSE were—MMTC (down 9.98%) and Apollo Tyres (down 5.61%).
The top two B Group gainers on the BSE were—Menon Pistons (up 19.96%) and Wheels India (up 19.48%).
The top two B Group losers on the BSE were—Venus Universal (down 20%) and GG Dandekar (down 18.85%).
Of the 50 stocks on the Nifty, 45 ended in the in the green. The main gainers were Hindalco Industries (up 8.47%); Tata Motors (up 4.79%); Maruti Suzuki (up 4.08%); Jaiprakash Associates (up 4.03%) and Tata Power (up 3.71%). The losers were IndusInd Bank (down 1.47%); Hero MotoCorp (down 0.86%); Hindustan Unilever (down 0.18%); Bharti Airtel (down 0.07%) and Cipla (down 0.05%).
Markets across Asia closed on optimism from the US as retail sales rose the most in three months and jobless claims dropped. This apart, news reports suggested that the Fed may “push back” its decision to taper its bond buying programme on higher interest rates. The Chinese benchmark rose on news that homes sales in Beijing in the first five months of the calendar year 2013.
The Shanghai Composite rose 0.21%; the Hang Seng climbed 0.99%; the Jakarta Composite jumped 3.04%; the KLSE Composite gained 0.75%; the Nikkei 225 surged 2.52%; the Straits Times advanced 0.87% and the Seoul Composite settled 0.20% higher. Bucking the trend, the Taiwan Weighted fell 0.29%.
At the time of writing, two of the three European markets were in the green while the US stock futures were in trading with a mixed bias.
Back home, foreign institutional investors were net sellers of equities on Thursday amounting to Rs558.06 crore while domestic institutional investors were net buyers of equities aggregating Rs713.77 crore.
Tribhovandas Bhimji Zaveri will be introducing the scheme of NO making charges on certified diamond jewellery at all TBZ-The Original stores in Maharashtra and has made tie up with multi banks for ‘Easy installments scheme’ for this monsoon season from June 15, 2013 to June 30, 2013. The stock rose 1.42% to close at Rs206.50 on the NSE.
Solitaire Machine Tools has bagged orders worth over Rs5 crore for its newly developed grinding machines from two major auto ancillary manufacturers. The stock rose 2.88% to close at Rs12.50 on the BSE.
The real reason for Maoist presence is the indefensible antipathy of the government to follow the policy of development with justice to the tribals, which alone will make Maoist influence wither away
The recent murderous attack by Maoists in Chhattisgarh resulting in death of 28 persons, including key state Congress leaders, their security officers and ordinary villages of area, has to be treated as a diabolical act by the self-styled leaders of the “revolutionary movement”, CPI (Maoist), who delude themselves that they are struggling for bringing about a revolution of workers and peasants.
One of the seriously injured persons, senior Congress leader VC Shukla, died on Wednesday, 12 June 2013. In fact, I would describe the activities of these ‘revolutionaries’ a massive mad act which has damaged greatly the cause of tribals. It is also most foul as Maoists have tried to stop political activity they do not agree with through violent means. Their politics is as evil as those they claim to be fighting against and should be rejected outright by all those who stand for democratic norms in political struggles for peace with justice.
If people expected that the two major political parties will, realising the urgency of the situation, forget their petty public posturing, they were mistaken. While Union home minister Sushilkumar Shinde and chief minister Raman issued a statement that they are going to work together, state Congress leaders have announced that they are boycotting the all-party meeting called by the Chhattisgarh chief minister. Even within Congress high-ups there is now a sharp division —while one central minister, who used to take a somewhat humanitarian approach to the Maoist problem, now calls them ‘terrorists’, a Central tribal minister has rightly warned against this approach and reproached the state government for having encouraged Salwa Judum’s sinful strategy, and which was also so commented adversely by the Supreme Court.
Even the normally conservative Planning Commission has suddenly thought fit to suggest universal coverage and to do away with the BPL test in 22 most backward of 82 IAP districts. Did we need these murders to face the reality of the total deprivation of the tribals and their desperation, which provides easy catch to Naxalite groups?
Naxalite leaders have made no secret of their aim. They feel (though in my opinion they are disastrously mistaken) that by spreading terror and trying to keep some areas outside the civil authority, they would one day be able to launch a fierce onslaught to capture political power in Delhi even if they are said to have a strong presence in 185 districts out of the total 607 districts. This is because the Indian state, however weak, will never be so weak as to allow itself to be taken over by such rump groups, even if it is able to equip itself with some arms—the fire power of a modern state is too overwhelmingly superior to Maoist groups. The real reason for Maoist presence is the indefensible antipathy of the government to follow the policy of development with justice to the tribals, which alone will make Maoist influence wither away.
But that requires taking on the corporate sector which is ravishingly exploiting the mineral wealth and denying to the tribals even their modest share. Why does the government not accept the suggestion of human right organizations, including the PUCL, to hold public discussions on this vital matter in the presence of tribal leaders, among others? Is the reason the presence of many mine owners belonging to the ruling party at the Centre? This charge finds support from the continued detention of Soni Suri, a social worker among tribals, on a fake charge of being a conduit for passing money to Maoists on behalf of a mining company given to her by the company’s contractor—inexplicably he has been denied bail, but the contractor or the owner has not been arrested. One is pained to see this strange nexus between the ruling party and the corporate sector.
Of course, I accept that the Maoist act of brutality and terrorism can never be justified, even if they be in response to equally heinous and brutal acts unleashed by the security forces, as we are seeing presently in Chhattisgarh. This situation no doubt poses a knotty question and the Supreme Court has answered thus:
“Indeed, we recognise that the state faces many serious problems on account of Maoist/Naxalite violence. Notwithstanding the fact that there may be social and economic circumstances, and certain policies followed by the state itself, leading to the emergence of extremist violence, we cannot condone it. The state necessarily has the obligation, moral and constitutional, to combat such extremism and provide security to the people of the country.
“However the primordial problem lies deep within the socio-economic policies pursued by the state in a society that was already endemically and horrifically suffering from gross inequalities. Our Constitution provides the guidelines within which the state is to act, both to assert such authority to transgress those guidelines is to act unlawfully, to imperil the moral and legal authority of the state and the Constitution.”
It is, however, very important that the revolting nature of extremist acts cannot serve as a basis or pretext for the governments to disregard their national and international obligations, the caution highlighted by the International Council of Jurists in its Berlin Declaration on 28 August 2004, namely that “both contemporary human rights and humanitarian law allow states a reasonably wide margin of flexibility to combat terrorism without contravening human rights and humanitarian legal obligations.
A warning has been given in a report titled “Development Challenges in Extremist Affected Areas” by an expert group constituted by the Planning Commission of India in the following manner: “In the case of tribes in particular it has ended up in destroying their social organization, cultural identity, and resource base... which cumulatively makes them increasingly vulnerable to exploitation.”
And yet, all that the government does is not to face the causes of the rage and despair that nurture such movements. Instead, it considers the matter as a menace, a law and order problem that is to be rooted out with the use of force. This cycle of mindless violence and counter-violence may continue unless the state honestly acts in the interest of the poor and the tribals, and does not connive with corporate mine owners in their exploitive acts.
(The writer is a former chief justice of the Delhi High Court.)