Nifty may move in the range of 5,220 and 5,395
The Asian indices opened cautiously and the domestic indices too were range bound for the major part of the trading session. However, in the last hour, the indices pushed higher extending the significant rally that started in late December. Today Nifty hit the highest intra day high since 31 October 2011. From here we may see the Nifty moving in the range of 5,220 and 5,395.The National Stock Exchange (NSE) saw a volume of 81.24 crore shares.
At the end of the session the Asian market were a mixed bag ahead of key US jobs data which will be out later today, which will offer more clues over the global growth and appetite for risk, while Greek debt restructuring talks dragged on.
The Sensex and the Nifty opened at 17,444 and 5,276 respectively. In the morning range bound session the respective indices hit their intra- day low at 17,383 and 5,256. Last hour of the trading session saw a huge jump taking the benchmarks to intra-day highs of 17,631 and 5,335. The Sensex closed at 17605, 173 points up (0.99%) while Nifty closed at 5326, 56 points up (1.06%). Both the Sensex and the Nifty had the highest closing since 31 October 2011. The advance-decline ratio on the NSE was 1115:655.
Among the broader indices, the BSE Mid-cap index surged 1.28% and the BSE Small-cap index climbed 1.17%.
The BSE Metal index (down 1.09%) was the lone loser in the BSE sectoral indices today. While all the other 12 sectoral indices gained, BSE Realty topped with gainers (up 2.15%). The others gainers among the top five were, BSE Healthcare (up 1.69%), BSE Power(up 1.49%), BSE FMCG(up 1.44%) and BSE Bankex(up 1.42%)
In the 30-share Sensex pack, 24 stocks gained while six fell. Among the top five gainers, NTPC (up 2.71%); Hindustan Unilever (up 2.69%); Sun Pharmaceutical (up 2.38%); DLF (up 1.97%); BHEL (up 1.93%). While the bottom five losers were Hindalco Industries (down 3.08%); Jindal Steel (down 2.66%); Tata Steel (down 1.56%); Sterlite Industries (down 0.97%); Hero MotoCorp (down 0.69%).
India's services sector grew at its fastest pace in six months during January as new businesses swelled, extending the previous couple of months' positive trend into the new calendar year, a survey showed.
The HSBC Business Activity Index, compiled by Markit and based on a survey of around 400 firms, bounced to 58.0 in January from 54.2 in December.
That was the third month the index has been above the 50-mark separating growth from contraction.
India's economy is expected to grow by 7 to 7.5 percent in the current fiscal year ending March, Prime Minister Manmohan Singh said in a speech on Friday. Gross domestic product grew 8.4 percent in the year tosince March 2011.
Reserve Bank of India Deputy Governor Subir Gokarn said the monetary authority will cut interest rates once it i's confident that inflation will keep slowing.
European was trading in green on the back of encouraging macroeconomic data in the euro zone and the UK. The data on Friday showed that the euro zone's private sector economy snapped a four-month decline in January and expanded, although very weakly,. aAccording to a business survey that hinted the euro zone may avoid recession. Britain's dominant services sector expanded at the fastest pace in 10 months in January. Investors have become more confident of a debt swap deal involving Greece and its private sector creditors, and that the country can avoid a disastrous default.
Back home, Bajaj Hindusthan, today said it has fully repaid external commercial borrowings (ECB) worth $80 million (about Rs389 crore). The ECB of 9.191 billion yen in form of syndicated term loan facility, which was raised in 2006-07, for the purpose of financing the capital expenditure, has been repaid in full on its due date 27 January 2012, upon completion of its average maturity of 5 years. Bajaj Hindusthan rose 1.85% to close at Rs35.70 on the BSE.
Madras Cements today reported a 77% rise in net profit for the quarter ended December to Rs76.84 crore on the back of higher sales. Net sales of the company also increased to Rs741 crore during the October-December quarter of the current fiscal from Rs579.21 crore in the same quarter last fiscal. Madras Cements rose 3.48% to close at Rs129.40 on the BSE.
Health insurance claims data shows that as the sum insured increases, so does the average claims size. Co-payments brings partial responsibility of payment and hence scrutiny of bills by the insured. Are co-pays the new weapon to fight excessive hospital charges?
Health insurance claims data based on a study of claims data of 4,90,000 employees of 285 employers across major industries by Vantage Insurance Brokers and Risk Advisors shows as the sum assured increases, so does the proportion of claim size, the rise being most dramatic at the highest end. The average claim size of mediclaim policyholder having sum insured (SI) of Rs50,000 is Rs13632. For SI of Rs1 lakh, Rs2 lakh, Rs3 lakh, Rs4 lakh and Rs5 lakh average claim size is Rs25057, Rs28685, Rs34562, Rs40572 and Rs49017 respectively. Are customers availing better category of room and services when coverage is high or are hospitals pushing the patient having sufficient insurance to more expensive services?
In India, the category of room (private a/c, private non a/c, twin sharing, etc) also determines all the other incremental charges associated with it. The better the room, higher the associated charges even including doctor’s fees. Mediclaim policyholders having high coverage may not negotiate with the hospital on the amount being charged and will avail better facilities even for ordinary hospitalization just to reap the benefit of paying premium to the insurance company over the years. Have companies caught on to this trend?
According to the same study, on the corporate insurance, 45% of the employers imposed co-pay in 2011 as compared to 13% in 2008. Co-pay simply means that the policyholder pays a certain percentage of medical costs while the rest is paid by the insurer. The percentage can vary between 10 and 30 in most cases. If your co-pay is 20% and the claim amount is Rs1 lakh, you will shell out Rs20,000—while the insurer is liable to pay the balance. Co-pay has been widespread in the US for a long time and is now used by Indian insurers.
Co-pay is mainly applied for parental coverage, but it is catching up with spouse, children and lastly the employee. According to Arvind Laddha, chief executive officer, Vantage Insurance Brokers and Risk Advisors, “Employers should define a cap on the maximum amount to be borne by the employee (co-pay), so as to limit the employee’s liability especially where the treatment costs become prohibitively high.”
Will co-pays be common feature in all retail mediclaim soon? According to Avadhoot Mavlankar, principal officer, Shinrai Insurance Broking, “Today, it is as much ubiquitous in retail policies as in corporate insurance.”
The co-pay clause is applied in different ways by insurers. Some may apply it when a policyholder gets treatment in a non-PPN (preferred provider network) hospital. In some cases, co-pay may be applied only to certain ailments specified in the policy or medical expenses related to pre-existing conditions. Others may insist on co-pay if the policyholder undergoes treatment in certain metropolitan cities.
Check out how the co-pay is applied in your policy, as it may even be subtly applied in conjunction with room rent. In this case you will not see the word co-pay in the policy, but it work in similar way. According to Rohan Dukle, Director, Magus Corporate Advisors Pvt. Ltd, “United India health insurance gold and silver policy prorates the claim based on your room rent and actual room you availed. E.g. If the room rent limit is 1% of SI and assuming SI of Rs2 lakh, your room rent limit is Rs2000 per day. In case you avail a room of Rs3000 rent, your claim is also prorated to pay only 2/3rd of the claim. The remaining 1/3rd will be borne by the policyholder.”
The main advantage of co-pay to the policyholder is a lower premium. Higher co-pay may lower the premium. Unfortunately, the co-pay clause is rife in senior citizens’ mediclaim where premiums are not low. It means that at the age when you need medical facilities the most is when you will also have to bear the burden of hospital bills partially. Star Health’s Senior Citizen Red Carpet policy has 50% co-pay for pre-existing diseases/conditions and 30% co-pay for all other claims.
According to Juzer Jawadwala, Technical Advisor, Nandi Insurance Broking, “Oriental insurance family floater policy has 10% co-pay for SI of Rs5 lakh or less. There is no co-pay for Oriental individual policy. Bajaj Allianz health guard also has co-pay of 10%, but if you pay 10% extra premium they will remove the co-pay.”
The other trend that will surface sooner or later in India is ‘deductibles’. It is popular in the US. The policy starts paying after a prefixed deductible amount is paid by the policyholder for medical services. For example, a deductible of Rs15,000 would mean that a policyholder pays the initial Rs15,000 in a year before he starts claiming from the policy. If the deductible amount is not reached in a year, the policy will pay nothing. This is, today, common in overseas mediclaim policies sold by Indian insurance companies to people travelling abroad.
An equivalent concept of deductible has arrived in Indian mediclaim through ‘Top-up’ and ‘Super Top-up’ policies. For these policies, payments kick in after a threshold amount has been spent. The difference between the two is that in the case of a top-up policy the expenses for a single treatment should be over the threshold, whereas in a super top-up the total expenses in a year must be above the threshold level for the policy to be effective. Thus, between top-up and super top-up, super top-up is more beneficial for the customer.
Arvind Laddha says, “Co-pay model is more popular than deductibles in India. Deductible amount on every claim will weed out smaller claims.”
Gujarat government challenged the state High Court order upholding the appointment of Justice RA Mehta as the Lokayukta on the ground that it was unconstitutional and done without its consent
New Delhi: The Supreme Court on Friday admitted an appeal filed by the Gujarat Government challenging the state governor's decision to "unilaterally" appoint Justice (Retd) RA Mehta as the Lokayukta, reports PTI.
A bench of justices BS Chauhan and JS Khehar said it would examine the matter at length as vital question of constitutional law is involved.
The bench said it will hear the matter at a stretch of three days from 20th February.
The Gujarat government has challenged the state High Court order upholding the appointment of Justice Mehta as the Lokayukta on the ground that it was unconstitutional and done without its consent.
The Gujarat High Court had on January 18 upheld the appointment of Justice Mehta as the Lokayukta while sharply criticising Chief Minister Narendra Modi for his "pranks" that had sparked a "constitutional mini crisis".
In the petition filed on January 19, the state government sought stay of the High Court judgement and also of the August 25, 2011, order of Governor Kamla Beniwal by which the warrant of appointment of Justice Mehta as Lokayukta was passed.