Stocks
Nifty & Sensex will stay buoyant : Weekly closing report
Nifty will steadily drift upwards on reform measures
 
The BSE 30-share Sensex closed the week that ended on 23rd May, at 24,693 (up 572 points or 2.37%), while the NSE’s 50-share Nifty closed at 7,367 (up 164 points or 2.28%) for the week. We had mentioned in our last week’s report that the Sensex, Nifty may move sideways for a long time.
 
On Monday, the market managed to rise higher. Narendra Modi's victory speech added to the upward momentum. Nifty closed at 7,264 (up 61 points or 0.84%).
 
Comments coming from Standard & Poor's (S&P) Ratings Services and Moody's Investor Service also showed that a stable government and proper economic reforms may bring a positive impact on rating for India.
 
The first budget of the new government is expected by July 2014. India's southwest monsoon is on its natural course and rain is expected to occur at many places across Andaman & Nicobar islands by Wednesday, Indian Meteorological Department (IMD) said in its forecast issued on Monday.
 
On Tuesday although the indices tried to edge higher, institutional selling pulled the benchmark lower. Nifty closed at 7,276 (up 12 points or 0.16%).
 
The Reserve Bank of India (RBI) governor Raghuram Rajan Tuesday said that the privatisation of state-run banks isn't necessary however, also mentioned that the public-sector banking system should be free from too much government influence.
 
Market moved slightly lower on Wednesday awaiting clarity about the next move of the incoming Prime minister and due to a stronger rupee which pushed software stocks lower. Nifty closed at 7,253 (down 23 points or 0.31%).
 
On Thursday Nifty covered up the previous day loss and closed at 7,276 (up 24 points or 0.32%). The move also got support from the positive data from China wherein the China manufacturing purchasing managers' index was 49.7 for May rising from 48.1 in April.
The RBI on Wednesday allowed large private gold importers, or star and premier trading houses, to import gold. However, the existing guidelines stating that importers can import gold, provided that 20% of it is exported as finished products, remain intact.
The upmove on the Nifty gained strength on Friday after news making the rounds that the finance ministry is working on a proposal to cut the fiscal deficit to 3.8% to 3.9% of GDP for the year ending 31 March 2015. Nifty closed 7,367 (up 91 points or 1.25%).
This week as many as 818 companies hit their 52-week high. In this list of 818 companies nearly 744 companies were either small-caps and mid-caps. Part of this list, consisted as many as 60 PSUs. To name a few, State Bank of Travancore, State Bank of India, State Bank of Bikaner & Jaipur, National Buildings Construction Corp, Power Grid Corp, NTPC, GMDC, BHEL, Power Finance Corp, ONGC, Gail, Hindustan Petroleum, Bharat Petroleum, SAIL and NMDC were PSUs on the list.
 
For the week, among the other indices on the NSE, the top two performers were Realty (23%) and Smallcap (18%) while the worst two performers were Pharma (3%) and FMCG (2%).
 
Among the Nifty stocks, the top five stocks for the week were DLF (28%); Sesa Sterlite (25%); NTPC (22%); BHEL (18%) and Tata Power (16%) while the top five losers were Ambuja Cements (5%); Sun Pharma (5%); Tata Motors (4%); Dr. Reddy's Lab (4%) and ITC (4%).
 
Of the 1,469 companies on the NSE, 1,365 companies closed in the green, 98 companies closed in the red while 6 companies closed flat.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 
Top ML sectors   Worst ML sectors  
Real Estate 21% Software & IT Services -2%
Sugar 21% Pharma -2%
Hotels 17% Consumer Products -1%
Energy 15% Cement 0%
Shipping 14% Auto 1%
 

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Capt Gopinath, Shazia Ilmi quit AAP
While Ilmi said that the party has lost its way and is being guided by a crony clique that takes impulsive decisions, Capt Gopinath criticised party chief Kejriwal for 'shoot and scoot' politics
 
Arvind Kejriwal-led Aam Aadmi Party (AAP) received a jolt on Saturday when two of the party members, Captain GR Gopinath who launched India's first low-cost carrier and Shazia Ilmi have resigned from the party.
 
Capt Gopinath, who joined the AAP in January 2014, cited growing differences within the party leadership as the reason for his quitting, and criticised party chief Kejriwal for 'shoot and scoot' politics. 
 
Shazia said that she is leaving AAP because of lack of inner party democracy. “There is a crony clique that runs the party now as principles of swaraj are not being followed within AAP,” she added.
 
Ilmi told reporters that AAP has lost its way and is being guided by a crony clique that takes impulsive decisions. “We fight against cronyism, but we have a crony clique that runs the party and takes impulsive decisions. Arvind is a brilliant person who  espoused the concept of Swaraj, but he’s unable to follow it within the party. I simply pointed that out,” she said.
 
Capt Gopinath, who founded the first low-cost carrier Air Deccan in 2003, criticised the functioning of Kejriwal, in his blog titled, 'Has Kejriwal lost his way'.
 
He said when Kejriwal took on Robert Vadra on corruption charges, "the Bharatiya Janata Party (BJP) loved it and also went in for the kill against the Congress," Gopinath said, adding that Kejriwal then took on Nitin Gadkari. 
 
"Kejriwal was brazen and broke that rule. He went for the jugular. What was rumoured in whispers, he stood up to in public, which made him the darling of the people and the media.... Kejriwal did not stop there. He made allegations against other high and mighty of the land," the blog said. 
 
Capt Gopinath sold Air Deccan to Vijay Mallya, who named the carrier as 'Kingfisher Red' that has now been closed down. 
 
Earlier in February 2014, Capt Gopinath, in an article published in the Economic Times, wrote, "I have said I am not thinking of resigning and I'm not frustrated. I joined AAP because I admired both Anna Hazare and Arvind Kejriwal. I continue in the party as I continue to admire Kejriwal though I still disagree with many of the actions or inactions of the party and the manner in which some in the party have conducted themselves."
 
"I am demanding from my party the same exacting standards of rectitude and accountability which AAP demanded and expected of other political parties. That's what brought us, AAP, to power in the first place. We cannot turn around and say BJP and Congress were worse than us and so how are they justified in attacking AAP," Capt Gopinath had said.

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COMMENTS

MOHAN

3 years ago

Poor Austhosh. He ruined his career by joining AAP politics. 'Vinashakaale vipareeta budhi' !!

How to make the government work for you using RTI and RSA
Use of the Rights to Services Act with RTI Act can help you move your files faster, Shailesh Gandhi told a packed audience at Moneylife Foundation
 
While the Right To Information Act (RTI) 2005 is well-known, there is another hardly-known tool available in Maharashtra called “Government Servants Regulation of Transfers and Prevention of Delay in Discharge of Official Duties Act, 2006” popularly also known as  Right to Service Act or Transfers and Delays Act (RS Act). In order to bring this Act to light, Moneylife foundation held a seminar “Make the Government Work for you” on 23 May 2014 with Shailesh Gandhi, former Central Information Commissioner (CIC). 
 
Mr Gandhi started the seminar by giving a brief about the foundation of the RS Act as a result of Anna Hazare's demands, which led to the first ordinance being issued in 2003. The Act was passed in 2006 and the relevant rules came into existence in November 2013. 
 
He went on to explain the important sections of the RS Act. One of the main harrasements faced by the common people is when arbitrary transfers and postings of government officials take place. In order to make the transfer policy transparent, section 4 of the RS Act specifies that, “The tenure of Government servants will be three years and transfers will normally be made only in April and May of each year .If an officer has to be transferred for special reasons in less than his tenure reasons have to be recorded in writing.” 
 
“Citizens Charter” forms the soul of this act which according to Section 2 (a) means, “List of facilities or services rendered by the office or Department, together with the time limit for providing such facility or services to the general public.” This needs to be published by the every government department as this would create awareness amongst the general public as well as ensure the civil officers adhere to their deadline. 
 
Government offices and the inexplicable delay by officials is addressed too by this act saving the common man of this misery as section 9 and 10 of the Act deal with the time specifications and strict action against any delay by the officers. 
 
Certain cases in which the RS Act would'nt apply are listed under Section 11 which include sub-judice matters, policy decisions, cases related to state and central government, legislation etc. 
 
Mr Gandhi ended the seminar by explaining the manner in which the RS Act has to be used and its simple application. He emphasised the use of the RS Act with RTI to bring about a change which will rule out  red-tape and harassment of common man. He further said, “If you want the government to work for you, you will have to act.” It is our responsiblity enforce government accountablity by making use of these acts. 

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