Monday Closing Report: Still locked in a range

Adding to Friday's gains, the market opened strong on positive global cues. It touched the day's high in initial trade but pared some gains and gradually drifted lower - near the day's low - and settled off those levels at the end of the session, above the crucial levels.

The domestic market opened higher on positive cues from the global arena. The Asian markets, which were in full strength today were upbeat on encouraging economic data from the US, also lent support to the local market. The key benchmarks touched their intraday highs within minutes of the opening bell but drifted marginally lower to trade in a narrow range. A bout of profit-booking in the post-noon session pushed the indices near the day's low. The market ended at those levels in range-bound trade.

The Sensex closed at 20,134, up 88.89 points (0.44%) today. The index touched a high of 20,268 and a low of 20,182 during the session. The Nifty settled 17.35 points (0.29%) higher at 6,035 after scaling an intraday high of 6,073 and a low of 6,018.

The overall market breadth was positive. The 30-stock Sensex ended with 20 scrips in the green against 10 in the declining list. The Nifty had 27 advancing stocks while 23 ended in the negative terrain. Among the broader indices, the BSE Mid-cap index rose 0.37% while the BSE Small-cap index gained 0.19%.

The top gainers on the Sensex were Hindalco Industries (up 3.33%), Sterlite Industries (up 3.16%), Tata Steel (up 2.57%), NTPC (up 2.51%) and ONGC (up 1.40%). The main losers on the benchmark were HDFC Bank (down 2.11%), Hindustan Unilever (HUL) (down 1.94%) and HDFC (down 0.57%).

BSE Metal (up 2.15%), BSE Consumer Durables (CD) (up 1.64%) and BSE Realty (up 1.23%) were the notable gainers in the sectoral space today while BSE Fast Moving Consumer Goods (FMCG) (down 0.67%) and BSE (IT) (down 0.48%) were the top losers.
The Supreme Court today refused to offer any immediate relief to Vodafone, which has challenged the Bombay High Court order allowing the government to tax the company's $11 billion deal with Hutch. The tax department had raised a demand for Rs12,000 crore as tax on the 2007 deal.

While refusing to stay the high court order, the apex court issued notices to the tax authorities directing them to decide within four weeks the liabilities of Vodafone.

Markets in Asia, which were in full strength today after various bourses in the region were closed on different days last week, ended with smart gains today. The rally was boosted by a higher-than-expected rise in US capital goods orders. Meanwhile, investors are awaiting a media release by the governor of the Bank of Japan on news of any additional economic initiatives.

The Shanghai Composite surged 1.41%, Hang Seng advanced 1%, Jakarta Composite jumped 2.07%, KLSE Composite gained 0.93%, Nikkei 225 rose 1.39%, Straits Times was up 0.67%, Seoul Composite was up 0.77% and Taiwan Weighted rose 0.31% at close of trade today.

India's vegetable oil imports are likely to increase to 93-95 lakh tonnes during the next oil year, ending October 2011, according to an expert.

"For the next oil year (November, 2010 to October, 2011), Indian vegetable oil imports will expand further to between 9.3 and 9.5 million tonnes," industry analyst Dorab Mistry said in Mumbai recently.

The country's vegetable oil imports during the current year are expected to amount to around nine million tonnes.

The US markets reported decent gains on Friday on encouraging data, recovering losses of the previous three days. All major indices gained by about 2% for the day after the Commerce Department reported that orders for durable goods excluding transportation rose in August at their fastest pace in five months, and corporate spending rose. In a separate report the Commerce Department showed sales of new homes rebounded 4.3% last month from the lowest level on records.

The Dow gained 197.84 points (1.86%) to close at 10,860. The S&P 500 rose 23.84 points (2.12%) to 1,148. The Nasdaq added 54.14 points (2.33%) to settle at 2,381.22.

Foreign institutional investors were net buyers of stocks worth Rs1,150 crore on Friday. Domestic institutional investors were net sellers of Rs880 crore on the same day.

Biotechnology major Biocon (up 1.21%) has extended its alliance with the Cuba-based CIM for an integrated programme in immunology. The company has strengthened its partnership with the Havana-based Centre of Molecular Immunology (CIM) by joining forces for an integrated anti-body programme in immunology, Biocon said in a statement.

Both Biocon and CIM have collaborated for almost a decade to develop biotechnology products for chronic diseases. Two drugs have already been approved due to this collaboration for medical use in India and other territories, it said.

Shree Renuka Sugars (up 3.77%) today said it has increased its stake in National Commodity & Derivatives Exchange (NCDEX) to 12% by purchasing 26.25 lakh equity shares of the bourse from Crisil for over Rs38 crore.

In a filing to the Bombay Stock Exchange (BSE), the Karnataka-based sugar-maker announced that it has purchased the stake from Crisil at a price of Rs145 per share, amounting to Rs38.06 crore. With the aforesaid acquisition, the company has increased its stake in NCDEX from 5% to 12%.


Can Bilcare’s non-clonable technology fight counterfeits?

Counterfeit products affect many industries, including pharmaceuticals. Here is a home-grown alternative that can help weed out the menace of fakes in a number of sectors — ranging from automobiles to security services

Counterfeiting and piracy are generally perceived as victimless crimes with 'fakes' simply constituting a 'cheap, alternative' purchase. According to estimates by the World Customs Organisation (WCO) and the Organisation for Economic Co-operation and Development (OECD), about 7%-10% of global trade is derived from counterfeit products.

However, many companies are now coming up with new devices and technologies to fight the counterfeit menace. Pune-based Bilcare Ltd has come up with a non-clonable technology, which it believes can fight against counterfeit products.

Dr Praful Naik, chief scientific officer, Bilcare, told Moneylife that his company's product uses a non-clonable technology, which covers identification, authentication and track-and-trace from origin to point of sale with usage in myriad sectors like pharmaceuticals, security services and agrochemicals.

Bilcare uses material sciences technology. The random physics principle with metal molecules at micro- or nano-structured composites can be embedded in any substance. The randomised millions of molecules are difficult to replicate. Metals have nature that can emit magnetic and optical properties. The digitised image created can be hidden behind a bar code or tags. A specific reader can be connected to a backend computer wirelessly to read the digitised image and authenticate the bar code or tags within seconds.

Comparing this technology with a DNA marker that can stand in a court of law, Dr Naik said that the non-clonable nanotech fingerprints cannot be copied by anyone, including Bilcare. Another advantage is that the non-clonable technology can help manufacturers to track their products throughout the supply chain.

Dr Naik believes that the pharma industry can use the technology to help curb counterfeit and pirated drugs. In the first phase, the companies can use the technology to prove whether a medicine is manufactured by them or not. This will also assure customers that the drug they are buying is genuine.

However, speaking to Moneylife, Dr Naik conceded that it may not be a cake-walk to sell the technology to the pharma industry. The cost of each digitised image stored with a bar code is Rs1.50 and pharma companies are not too keen on spending such amounts of money on this technology. "The reason for apathy is that Indian pharma companies are doing extremely well and are not much bothered with some incidents of 'counterfeits,'" Dr Naik said. However, the National Pharmaceutical Pricing Authority (NPPA) has shown willingness to consider this cost while deciding the ceiling price for a drug, he said.

The technology can even help to make Indian currency notes fake-proof in the future. Indian currency notes are susceptible to counterfeits even after having 17 security features. Bilcare is providing 70,000 non-clonable ID cards for the Delhi police for the Commonwealth Games (CWG). Dr Naik talks highly about the Delhi police approving the product usage for the CWG in a record timeframe, unheard of in government circles.

He told Moneylife that Japanese auto parts manufacturers are using Bilcare technology with great success to prove that they support warranty for only genuine parts and also to have access to the history of the auto part with respect to warranty date and service.

Dr Naik shared with Moneylife information about the diverse nature of clients interested in the product. Some Europe-based museums are interested in using the technology. These museums want to ensure that the antique pieces they put on display at an exhibition are returned in the original. A wine producer in the US has accepted the non-clonable technology. Even the security department of one Asian country has been using this technology for identification.



Narendra Doshi

7 years ago

The cost of Rs1.50 is indeed cheap for the value one gets.Kudos to NPPA for its acceptance to consider while fixing the MRP. Also, kudos to CWG for implementing the decision in a short time frame. Being a marketer for security products in my career, for almost 10 years, I feel this technology has to be exploited by large segments of the counterfeit products, very seriously. The cost has to be related to its future value - over the entire life time of the product & when one sees it in this way, the cost today is indeed peanuts. Very intersting input from Mr. Raj with immense potential in a very large segment of applications.

India's wheat imports rise by 27% in H1

New Delhi: India has contracted to import a whopping 2 lakh tonnes of wheat — 27% more than in the entire 2009-10 — in the first half of the current fiscal but shipments are unlikely to take place soon as global prices are high, reports PTI quoting data from the Roller Four Millers Federation of India.

Wheat imports stood at 1,58,000 tonnes last fiscal.

"We have imported 2 lakh tonnes of wheat so far this fiscal at $280-$285 a tonne," Federation president R K Garg told media at its 70th Annual General Meeting here.

Currently, there are no contracts being signed for imports as the international prices have skyrocketed, he said.

For instance, global prices of wheat have risen to $370 a tonne. So, it is unviable to buy wheat at this price level from the overseas market, he added.

Wheat prices in the international market have firmed up sharply since last two months, on supply concerns due to drought and wildfire in Russia, one of the world's biggest wheat producers.

At present, there is zero duty on wheat imports. Flour millers import high-protein variety of wheat, mainly from Australia, for usage in cookies and breads.

Mr Garg further suggested that the government should keep open duty-free wheat import option to regulate local prices.

"Duty free import in the current scenario just provides an open alternate option for the miller and a regulating factor for the local trader/supplier," he said.

The quantity of wheat imports by the country has not been very significant for more than last two years and more over, the phytosanitary norms have been deterring bulk imports, he added.

India, the world's second biggest producer of wheat, produced 80.71 million tonnes in 2009-10 crop year. It is targeting to harvest 82 million tonnes in the forthcoming 2010-11 crop year.


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