Indian stocks to open on a cautious note: Tuesday Market Preview

Asian markets are drifting on their own strength in the absence of any cues from the US

With Wall Street closed on Monday for the Independence Day holiday and markets in Asia trading mostly lower in early trade today, the domestic market is likely to open sideways. European markets closed mixed overnight but with the easing of the Greek debt imbroglio, attention will be drawn to the European Central Bank’s meeting where it will decide on a hike in key rates. The SGX Nifty, which opened positive, fell 1.50 points to 5,664 compared to its previous close of 5,665.50.

Signs of steady growth in the global economy, following a robust rise in US manufacturing in June, helped the Asian markets open higher yesterday. This positive effect rubbed on the Indian bourses, as well. However, the lack of any major triggers resulted in the market paring a major part of the day's gains and closing with modest gains.

Earlier, the Nifty was 53 points higher at the opening at 5,680 and the Sensex gained 133 points. Oil & gas, banking, auto and metal counters witnessed good buying activity in early trade. Investors resorted to profit booking at higher levels resulting in the market falling to the day's low in mid-morning trade. At the intra-day low, the Nifty fell to 5,633 and the Sensex to 18,782. However, the support of the broader indices kept the market in the green. The market was range-bound till the end of the session in the absence of any major triggers. The Nifty gained 23 points to close at 5,651 and the Sensex closed trade at 18,814, up 52 points from its previous close.

The Nifty traded well above its support of 5,475 during the entire session. A range-bound movement is expected till the Nifty touches 5,690. A close above 5,700 would signal a fresh rally.

Markets in Asia were mostly lower in early trade on Tuesday in the absence of any support from its US counterparts that were closed for the Independence Day holiday. With the regional bourses up for five days in a row, a bit of consolidation has set in.

The Shanghai Composite fell 0.16%, the Hang Seng, the Jakarta Composite and the Taiwan Weighted declined 0.17% each, the KLSE Composite shed 0.01%, the Nikkei 225 was down 0.15% and the Straits Times tanked 0.76%. Bucking the trend, the Seoul Composite gained 0.05% in early trade.

Back home, amid difficulties faced by Indian companies to repay loans taken under foreign currency convertible bonds (FCCBs), the Reserve Bank of India (RBI) on Monday allowed refinancing for its redemption by allowing firms to raise fresh overseas borrowing under the automatic route.

The RBI has decided to allow the Indian companies to refinance or restructure the outstanding FCCBs issued by them. It, however, said the amount of fresh ECB/FCCB should not exceed the outstanding redemption value at maturity of the outstanding FCCBs.

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Maharashtra issues notification for refund of court fees on withdrawal of cheque-bouncing case

If a complainant withdraws the case under section 138 of the Negotiable Instruments Act, before the charges are framed, he could get a refund of up to 50% of the court fees paid

If you plan to withdraw a cheque-bounce case in court before charges are framed, you may also receive about 50% of the court fees as refund. This move would not only benefit individuals, but also financial institutions who file such cases, then opt for out-of-court settlement.

The Maharashtra government announced in a gazette notification in May that a claim for refund of court fees can be made after the withdrawal of the complaints for the cases, which are filed under section 138 of the Negotiable Instruments Act, 1881.

In India, the Negotiable Instruments Act regulates commercial transactions which take place through cheques, promissory notes and bills of exchange.

According to the Maharashtra government resolution (GR), the state government, in exercise of its powers conferred by section 43(2) of the Bombay Court Fees Act, 1959 will provide part of the court fees paid by the complainant under article 18 of schedule I, appended to the Act. Such refund will be paid to the complainant under two broad circumstances and conditions.

First, under section 138 of the Negotiable Instruments Act, 1881, a refund of 50% of the total court fees will be made when the complainant withdraws a complaint, or when the offence was compounded, before framing of particulars/charges, provided the claim is made within one year from the date of withdrawal of the complaint.

Similarly, 25% of the court fee will be refunded provided the complaint is withdrawn, or the offence is compounded, after farming of particulars/charges, or any subsequent stages of the complaint. Here again, a claim has to be made within a year.

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COMMENTS

sanjay khatnani

6 years ago

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Share prices may come under pressure: Monday Closing Report

Nifty to move between 5,500 and 5,690. A close above 5,690 would signal a fresh rally

Signs of steady growth in the global economy, following a robust rise in US manufacturing in June, helped the Asian markets open higher this morning. This positive effect rubbed on the Indian bourses, as well. However, the lack of any major triggers resulted in the market paring a major part of the day's gains and closing with modest gains.

The market opened strong, tracking good gains among its Asian peers, on signs of a steady global economic recovery. The Nifty was 53 points higher at the opening at 5,680 and the Sensex gained 133 points. Oil & gas, banking, auto and metal counters witnessed good buying activity in early trade.

Investors resorted to profit booking at higher levels resulting in the market falling to the day's low in mid-morning trade. At the intra-day low, the Nifty fell to 5,633 and the Sensex to 18,782. However, the support of the broader indices kept the market in the green. The market was range-bound till the end of the session in the absence of any major triggers. The Nifty gained 23 points to close at 5,651 and the Sensex closed trade at 18,814, up 52 points from its previous close.

The Nifty traded well above its support of 5,475 during the entire session today. A range-bound movement is expected till the Nifty touches 5,690. A close above 5,700 would signal a fresh rally.

The advance-decline ratio on the National Stock Exchange was a positive 949:451.

Among the broader markets, the BSE Mid-cap index advanced 0.92% and the BSE Small-cap index surged 1.19%.

The BSE Realty index (up 3.66%) was the top sectoral gainer today. It was followed by BSE Consumer Durables (up 1.99%), BSE Bankex (up 1.09%), BSE Auto (up 0.91%) and BSE PSU (up 0.84%). BSE Capital Goods (down 0.29%) and BSE Fast Moving Consumer Goods (down 0.21%) were the laggards today.

Reliance Infrastructure (up 6.84%), DLF (up 6.01%), Reliance Communications (up 3.29%), Hindalco Industries (up 1.90%) and Tata Motors (up 1.76%) were the top Sensex gainers. The losers were led by ITC (down 1.34%), Larsen & Toubro (down 0.88%), Tata Steel (down 0.86%), NTPC (down 0.81%) and Hero Honda (down 0.36%).

The top Nifty gainers were Reliance Infra (up 6.95%), DLF (up 5.76%), RCom (up 3.34%), PNB (up 3.21%) and Kotak Bank (up 3.08%). NTPC (down 1.50%), ITC (down 1.31%), TCS (down 0.78%), L&T (down 0.75%) and Cairn India (down 0.71%) were the major losers on the index.

Markets in Asia, with the exception of the KLSE Composite, finished higher in today's trade. The gains were mainly attributed to positive economic data from the US last week, which showed robust manufacturing growth in June.

The Shanghai Composite jumped 1.94%, the Hang Seng surged 1.66%, the Jakarta Composite gained 0.67%, the Nikkei 225 rose 0.98%, the Straits Times advanced 0.46%, the Seoul Composite climbed 0.92% and the Taiwan Weighted was 0.40% higher. On the other hand, the KLSE Composite lost 0.04% in trade.

Back home, foreign institutional investors were net buyers of stocks worth Rs599.66 crore on Friday. On the other hand, domestic institutional investors were net sellers of shares worth Rs455.31 crore.

Tea major McLeod Russel hopes to cash in on the decline in tea output from Africa, which has resulted in higher prices for Indian tea. Price of quality tea is expected to rise by around 10%-12% and other types of teas by 5% to 7%. The company also expects its production for the current year to be around 104 million kg compared to 96 million kg last year. McLeod Russel gained 2.39% to Rs278.55 on the National Stock Exchange today.

Coal India saw a setback in production last month on account of heavy rains. It was short of its target by around 2 million tonnes, but expects to achieve its production target of 452 million tonnes for the fiscal 2011-12. The stock rose 2.62% to Rs394.30 on the NSE today.

NHPC, the country's largest hydro power producer, plans to raise about Rs2,000 crore in the current fiscal, mostly from the domestic market. The proceeds would be utilised for existing as well as upcoming projects. NHPC, which has an installed capacity of more than 5,300MW, has a cash surplus of over Rs4,000 crore. NHPC was up 1.42% at Rs24.95 on the NSE.

MTNL has invited expressions of interest from banks for providing long-term loans of Rs1,500 crore to repay its debt and meet operational expenses. The funds are expected be used to repay the loan the state-owned telecom major had taken for buying 3G and BWA spectrum last year. MTNL plans to convert Rs3,000 crore loan, out of the loan worth Rs7,000 crore it had taken last year, into long-term debt. MTNL climbed 2.39% to Rs45 apiece on the NSE.

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