Gains on Sensex, Nifty to continue: Tuesday closing report

For the uptrend to continue, Nifty should keep itself above 6,085

The Indian benchmarks spurted Tuesday morning, headed higher and maintained the rise till the close. This is in line with what we mentioned in Monday’s closing report. We had mentioned that the NSE Nifty has to stay above 6,050 for maintaining the upward trend. Today, the index could manage keeping itself above the level and closed in the positive for the third consecutive session.


The BSE 30-share Sensex opened at 20,458 and immediately hit a low of 20,436 while the Nifty opened at 6,071 and hit a low of 6,067. Near the end of the session, Sensex hit a high of 20,685 and closed at 20,634 (up 170 points or 0.83%) while Nifty hit a high of 6,142 and closed at 6,127 (up 54 points or 0.89%). This is the highest gain on the Nifty since 15 January 2014. The NSE recorded a volume of 44.88 crore shares.


Finance minister P Chidambaram today said that Reserve Bank of India (RBI) must be a balance between price stability and growth. RBI Governor Raghuram Rajan has maintained in recent public comments that keeping inflation under control is necessary to promote growth and rejected views of a trade-off between the two.


India’s fiscal position remains weak and a cut in spending to meet the budget gap estimate this year will probably hurt growth, Moody’s Investors Service said.


The Lok Sabha on Tuesday passed the controversial Telangana Bill amidst stiff protests from central ministers and Congress MPs from Seemandhra.


In his first public interaction with CII at its National Council Meeting in New Delhi on Monday, 17 February 2014, Arvind Kejriwal, leader of the Aam Aadmi Party and former chief minister of Delhi said that the key issue is of "governance". The need of the hour, he said, is "honest and efficient governance" which has been lacking all these years, and due to which even though India was led by the best economists in the recent past, the country's growth has faltered. Kejriwal also said that "we want to end inspector and license raj and corruption".


US stock markets remained closed on Monday for a holiday.


Except for Shanghai Composite (down 0.77%) and KLSE Composite            (down 0.12%) all the other Asian indices closed in the green. Nikkei 225 was the top gainer which rose 3.13%.


China's central bank sold repurchase contracts for the first time since June, draining funds from the banking system and driving money-market rates higher.


The Bank of Japan is widely expected to keep its policy unchanged in its monetary policy today. Japan's central bank pledged to expand the monetary base by 60 trillion to 70 trillion yen ($686 billion) per year. It doubled a core part of a growth lending program to 7 trillion yen and increased the scale of a lending facility.


European indices were trading mostly in the red. US Futures were trading flat.


German investor confidence fell for a second month in February. The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, slid to 55.7 from 61.7 in January, after reaching a seven-year high of 62 in December.


UK inflation cooled in January, slowing to below the Bank of England’s 2% target for the first time since November 2009. Consumer prices rose an annual 1.9 %, down from 2% in December, the Office for National Statistics said today in London.


Lok Sabha passes Telangana Bill

Significantly, there was no live telecast by Lok Sabha TV for 90 minutes during a clause by clause consideration of the bill before its passage

The Lok Sabha on Tuesday passed the Telangana Bill that would divide Andhra Pradesh in two parts amid din and strong protests by members from the Seemandhra region, including Ministers.


The Andhra Pradesh Reorganisation Bill, 2014 was adopted by voice vote along with several official amendments, with the main Opposition Bharatiya Janata Party (BJP) coming on board.


Moving the Bill for consideration and passage, Home Minister Sushilkumar Shinde said the Centre will give a special financial package to Seemandhra, residual part of Andhra Pradesh, to address the grievances of the people of that region.


A number of amendments moved by AIMIM member Asaduddin Owaisi and Trinamool Congress member Sougata Roy were negated.


Significantly, there was no live telecast by Lok Sabha TV for 90 minutes during a clause by clause consideration of the bill before its passage.


Many members protested at the way the bill was passed in the din, saying it was against the democratic norms and a “black day” in the country’s democracy.


The Bill was passed after a very brief discussion in which only Leader of the Opposition Sushma Swaraj and Minister Jaipal Reddy, a pro-Telangana leader from Andhra Pradesh, spoke.



MG Warrier

3 years ago

By now, it is clear to the people of India that when it comes to major issues of national concern, the two national level political parties, namely Congress and BJP can come together and rescue each other. This has been proved last when they ‘resolved’ Telengana issue in the Lok Sabha on February 18, 2014. If these two parties formalise this temporary ‘living together’ relationship, the country will benefit. Economy of scale demands that.
The parties should move forward and fight the 2014 LS Poll on a common platform. The broad areas of a pre-election alliance could be:
i) Go by the norms suggested by Rahul Gandhi and P Chidambaram while selecting candidates. Rahul Gandhi has suggested in the last AICC meeting that fifty per cent of the candidates fighting 2014 Election should be below 35 years of age. Chidambaram is for fifty percent women candidates. As the two categories need not be mutually exclusive, both should be accomodated.
ii) To ensure that AAP does not spoil the show, for this one election deny tickets to candidates who can be even remotely identified as ‘dynasty’, ‘corrupt’ or ‘with criminal background’
iii) As there has already been mutual agreement on issues like nuclear deal, New Pension System, Secularism, Black Money, States Reorganisation, passing of Lok Pal Bill etc. put together a Common Minimum Programme.
iv) As the only dispute could be on number of positions available for distribution, agree to bifurcate larger states and think of doubling the number of members in legislatures for which purpose a National Commission could be appointed even before the Elections 2014 process commences.
M G Warrier, Thiruvananthapuram

Vinay Joshi

3 years ago

Hello Ms. Sucheta,

With reference to my earlier comment on SC judgement [Rajiv killers]my stand same.

Yes, may be the largest party in Govt. was tantamount to 'BLACKOUT'
heralding emergency like situation practiced -- BUT IT WAS ONLY GLITCH OF TELECAST!?



Action by SEBI under ordinance remains valid, says Meena

Any action initiated by SEBI as per the ordinance issued last year remains valid and the consequent effects of the same will continue, says the minister

Any actions taken by market regulator Securities and Exchange Board of India (SEBI) under the government ordinance against capital market manipulations, will remain valid and the consequent effects of the same will continue, Parliament was informed on Tuesday.


Last year, President Pranab Mukherjee had promulgated an ordinance amending the securities law that provided SEBI with more powers to check fraudulent investment schemes and other market manipulations.


However, the ordinance had lapsed on 16 January 2014 as the Bill in this regard could not be passed in Parliament.


"An ordinance promulgated by the President is of the same force and effect as an Act made by the Parliament," minister of state for finance Namo Narain Meena said in written reply to the Rajya Sabha.


"Therefore, any action initiated as per the ordinance issued remains valid and the consequent effects of the same will continue," he added.


The Securities Laws (Amendment) Ordinance, 2013, was promulgated in July, and for the second time in September.


As per the minister, SEBI had issued norms under the ordinance related to collective investment schemes (CIS), procedure for search and seizure as well as settlement of administrative and civil proceedings.


In his interim budget speech in the Parliament, Finance Minister P Chidambaram had regretted the non-passage of the Securities Laws Amendment Bill.


To a separate query on whether there was a delay in action against illicit CIS by Saradha Realty India from SEBI, Meena gave out the details of the procedures followed by SEBI since 2010 when the Economic Offences Investigation (EOW) Cell had informed it about the fund raising activities by the company.


Meena said: "As per the procedure in quasi-judicial proceedings, any party to be proceeded against has to be served with a show cause notice and be given a fair and reasonable opportunity before an adverse order is passed in accordance with the principles of natural justice since the orders of SEBI are subject to judicial review."


After being informed about the CIS activities of Saradha Realty by EOW Cell, SEBI had on various occasions in 2010 written to Saradha Realty seeking details of its schemes and funds raised from investors, as per the minister's reply.


The regulator had issued a show cause notice to Saradha Realty in December 2011 based on prima facie evidence of unauthorised CIS activities by the company.


Subsequently, as Saradha Realty failed to furnish documents with SEBI, among others, the market regulator had issued orders against the company on 23 April 2013.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)