Nifty in no-man’s land: Monday closing report

Nifty may remain directionless until budget

Most of the Asian indices opened in the positive on the speculation that the next Bank of Japan governor will deploy aggressive monetary easing. On Friday, the US stocks rallied after better-than-expected results from personal-computer maker Hewlett-Packard Co and an upbeat report on German business confidence. Back at home the Sensex and the Nifty also opened in the positive at 19,365 and 5,871 respectively. But soon the domestic indices entered into the negative zone and in the noon session both the Sensex and the Nifty hit their respective intra day low. Sensex hit a low of 19,238 which the lowest after 21 December 2012 while Nifty hit a low of 5,825 which is the lowest after 18 December 2012. However, there were strong support levels for the market and Sensex and Nifty made a smart recovery to hit a higher high at 19,411 and 5,878. The indices couldn’t sustain at that level and started a downward, but ended flat. Sensex closed 15 points up (0.08% up) at 19,332 while the Nifty closed 4 points up (0.08% up) at 5,855. The NSE saw a disastrous advance decline ratio of 431:1085 and a volume of 64.36 crore shares.
While the BSE Sensex closed flat, the broader indices ended in the negative. The BSE Mid-cap index fell 1.20% and the BSE Small-cap index fell 1.36%.
The top sectoral gainers were BSE IT (up 1.86%); BSE TECk (up 1.28%); BSE Auto (up 0.78%) and BSE Healthcare (up 0.02%). The main losers were 
BSE Realty (down 2.39%); BSE Capital Goods (down 1.68%); BSE Metal (down 1.08%); BSE Oil & Gas (down 1.05%) and BSE PSU (down 1.04%).
Fifteen of the 30 stocks on the Sensex closed in the positive. The major gainers on the Sensex were Infosys (up 2.84%); Tata Motors (up 2.06%); Hero MotoCorp (up 1.42%); BHEL (up 1.29%) and TCS (up 1.16%). The chief losers were Cipla (down 2.60%); Larsen & Toubro (down 2.30%); ONGC (down 2.04%); Coal India (down 1.99%) and Reliance Industries (down 1.01%).
The top two A Group gainers on the BSE were—Ranbaxy Lab (up 4.80%) and Sun TV Network (up 3.94%).
The top two A Group losers on the BSE were—Core Projects (down 62.42%) and Opto Circuits (down 10.26%).
The top two B Group gainers on the BSE were—Concurrent India (up 20%) and Winsome Yarns (up 11.84%).
The top two B Group losers on the BSE were—Aanjaneya Lifecare (down 20%) and Sudar Industries (down 19.99%).
Of the 50 stocks on the Nifty, 24 ended in the green. The key gainers were Ranbaxy Lab (up 4.94%) %); Power Grid Corporation (up 2.84%); Infosys (up 2.79%); Tata Motors (up 2.19%) and BHEL (up 1.84%). The top losers were
DLF (down 3.39%); Jaiprakash Associates (down 3.20%); Cipla (down 2.97%); Larsen & Toubro (down 2.46%) and ONGC (down 2.15%). 
On international news, China's manufacturing may expand this month at a slower rate, according to a private survey of companies. The preliminary reading of a Purchasing Managers' Index was 50.4 in February, according to a statement from HSBC Holdings Plc and Markit Economics today, 25 February 2013. HSBC and Markit will report the final February reading on Friday, 1 March 2013, the same day that a separate, government-backed purchasing managers' index will be released. Except for Seoul Composite (fell 0.46%) and Taiwan Weighted (fell 0.49%) which ended in the negative all the other Asian indices ended in the positive with the Nikkei 225 being the top gainer (up 2.43%)
Moody's Investor Service late Friday cut its triple-A rating on the United Kingdom because of a weak growth outlook and the country's rising debt burden. Moody's lowered its rating on the UK's domestic and foreign-currency government bond ratings by one notch to Aa1 from Aaa. The outlook is stable.
With few days left before $85 billion is slashed from U.S. government budgets, the White House on Sunday issued more dire warnings about the harm the cuts will do to Americans. But Republicans, who advocate budget cuts, said the warning was overplayed and called on President Barack Obama to apply what is known as the "sequester" in a more careful way, rather than slashing budgets across the board. 
The US Futures were trading hugely in the positive, following a huge rally in all the major European markets. 
After market hours, Bhoruka Aluminium has informed BSE that the board of directors of the company at its meeting has approved to make reference to Board for Industrial and Financial Reconstruction (BIFR) under Section 23(1) of Sick Industrial Companies (Special Provisions) Act, 1985 (SICA 1985), consequent to erosion of more than 50% of the peak net worth of the company as at September 30, 2012 (18 months); the proposal which has been duly considered and approved by the shareholders at its annual general meeting held on February 25, 2013. The stock closed 1.01% up at Re 1 on the BSE.
Jindal Photo has informed BSE that the board of directors of the company at its meeting has decided to withdraw the scheme of demerger of investment division of Jindal Photo into Jindal Photo Investments and Finance Limited. The company will soon apply to Bombay High Court in this regard. The stock fell 3.71% to close at Rs119.45.


Sanjay Dangi’s portfolio stocks hit by margin pressures?

Shares of Core Education & Technologies, ABG Shipyard, DB Realty, Welspun Corp and Orbit, which are part of Sanjay Dangi’s portfolio, hit their 52-week low today. Market rumours are that the speculative operator has gone bust due to margin pressures. Remember, operators almost always front for company promoters

Shares of several mid-cap companies allegedly linked with speculative operator Sanjay Dangi are tumbling for the past few days. Today, some of the like Core Education were on a freefall. According to market sources, the operator has gone bust due to marked-to-market margin pressures leading to the downfall in share prices of these companies. However, operators usually front for company promoters. When their deal with promoters fall through, margined stocks are sold off mercilessly and the operator takes the blame.

Vijay Kedia, director of Kedia Securities says, "Absence of retail investors in Indian capital market is because majority of midcaps are manipulated and operators are never caught".

According to reports from, an excellent blog on Indian stocks, one of the group entities related to Dangi, Mentor Capital, holds 1.05% to 12.75% stake in various mid cap and small cap companies. It includes, ABG Shipyard (2.05%), Amar Remedies (1.28%), Ashima (1.46%), Core Education & Tec (1.2%), Gokul Refoils & Solvent (2.91%), J Kumar Infraproject (3.47%), JJ Exporters (3.35%), Kesar Enterprises (3.47%), Kesar Terminal & Infra (3%), Panasonic Appliances (10.26%), Parekh Aluminex (10.61%), Prakash Steelage (4.86%), RPG Life Sciences (2.76%), Sahara One Media Ent (1.05%), Sangam India (12.75%), Sat Industries (1.17%), SQL Star International (5.17%) and Welspun Corp (2.86%).

On Monday, midcap stocks like ABG Shipyard and Aanjaneya Lifecare hit the lower circuit with 20% intra-day circuit filter, while trading in DB Realty was frozen at 10% of its lower circuit. Shares of Eros, Welspun, Opto Circuits and Orbit are also down 13% to 30% over their previous closing prices.

The case of Core Education & Technologies is quite interesting. On Monday, it looked as if there is no tomorrow for Core Education as its share price tumbled by a whopping 62.42% to hit a 52-week low at Rs110.95. DB Realty is another one that hit its one year high of Rs168.40 on 7 January 2013 and today reached its lowest in 52-week at Rs65.55, hitting the lower circuit limit.

ABG Shipyard shares at Rs288.05 hit its 52 week low today, while it recorded its one year high or Rs429.15 on 24 February 2012.

Eros closed Monday at Rs181.20 down 6.28%, while Welspun (down 19.86% at Rs67.20), Opto Circuits (down 10.26% at Rs53.35 before hitting 52-week intraday low at Rs48.1) and Orbit Corp ended 12.34% down at Rs33.75 on the BSE. The BSE Sensex ended marginally up at 19331.7.

Company Name

Stake in %

 Share price as on 25 Feb 2013

ABG Shipyard


 Rs288.05 (-19.97%)

Amar Remedies


 Rs30.85 (-5.51%)



 Rs3.6 (-6.49%)

Core Education & Tec


 Rs110.95 (-62.42%)

Gokul Refoils & Solvent


 Rs27.95 (-1.24%)

J Kumar Infraproject


 Rs214 (-2.64%)

JJ Exporters


 Rs12.39 (2.99%)

Kesar Enterprises


 Rs33 (-4.1%)

Kesar Terminal & Infra


 Rs58.9 (3.24%)

Panasonic Appliances


 Rs71.5 (-1.04%)

Parekh Aluminex


 Rs128.75 (-4.1%)

Prakash Steelage


 Rs100.75 (3.17%)

RPG Life Sciences


 Rs59.9 (1.61%)

Sahara One Media Ent


 Rs95.9 (4.87%)

Sangam India


 Rs47.6 (-3.25%)

Sat Industries


 Rs9.75 (1.56%)

SQL Star Intl


 Rs3.7 (-4.88%)

Welspun Corp


 Rs67.2 (-19.86%)


Shares of Amar Remedies closed 5.51% down at Rs30.85, Ashima (6.49% Rs3.6), Gokul Refoils & Solvent (1.24% Rs27.95 new low), J Kumar Infraproject (2.64% Rs214), Kesar Enterprises (4.07% Rs33), Panasonic Appliances (1.04% Rs71.5), Parekh Aluminex (4.10% Rs128.75), , Sangam India (3.25% Rs47.60), and SQL Star International (4.88% Rs3.7) were the other big losers from Dangi’s portfolio.

Last month, market regulator, Securities and Exchange Board of India (SEBI), imposed a fine of Rs10 lakh on three entities in a case related to alleged share price manipulation by Dangi group and his associates.

SEBI, in three separate orders on 28th January, imposed a penalty of Rs5 lakh on Basukinath Highrise, Rs3 lakh on Techbuild Impex and Rs2 lakh on Ragini Merchants. “ These three entities did not furnish various details sought by the regulator like required bank statements and details of shareholders on a quarterly basis, complete details as well as the basis of investments in the dummy companies created by Murli Industries, among others,” SEBI said in the order.

Earlier in December 2010, SEBI had passed an interim order banning Dangi for colluding with promoters of Murli Industries, Ackruti City, Welspun Corp and Brushman India to influence share prices of these entities. (Read more Sanjay Dangi, another barred market manipulator, still pulling strings )




4 years ago

dear Author

The title line mentions OPTO circuits as a holding by Dangi, but the tabkle does not give theholding. So how have you made the connection to Opto's fall with Dangi? Are you guessing or do you have some inside information that you will not disclose?Can you please explain?

siddharth biswal

4 years ago

Rs 10 fine?i think you mean Rs 10lac fine.

arun adalja

4 years ago

regulators are watching the market and if such thing happens they can stop trading and prevent the fall.but who bothers?

Suman Mukherjee

4 years ago

It is not necessary that since the stocks belong to the portfolio of an alleged operator, the fall is due to that reason. It could be co-incidental too. Let us see what our regulator finds out.


4 years ago

3rd last para
"Last month, market regulator, Securities and Exchange Board of India (SEBI), imposed a fine of Rs10 on three entities"
FINE OF RS 10 please check and correct.



In Reply to DEEPAK KHEMANI 4 years ago

must be 5+3+2=10 lakhs.As explained in the next sentence.
However this explains why retailers are shying away from the manipulated market.SEBI must correct the functionality of the market and then should bring schemes like RGESS (welcome kit to the manipulated market.

Rail Budget: Will Bansal hike passenger fares again?

While there is a need to increase passenger fare within a month due to diesel price rise, Congress does not want to upset voters, especially looking at the upcoming elections

On Tuesday, all eyes would be on Pawan Kumar Bansal, the minister of Railways on whether he bows to pressure of hiking passenger fares again within a month or looks at other sources to mobilise funding to offset the burden of diesel price hike.


Last month, Bansal hiked passenger fares across-the-board after the Railways faced a loss of about Rs25,000 crore in the passenger segment.


However, sources said a section of the Congress is not inclined towards affecting another round of fare hike as general elections are not far away.


Railways had aimed to mop up an additional revenue of Rs6,600 crore but the fuel hike had wiped out Rs3,300 crore, Bansal had said.


While there are possibilities of minor tinkering in freight rates despite resistance from the industry due to the slow economy growth, there will be some announcements of freight schemes to attract more loadings in the next fiscal 2013-14.


The Rail Minister held several round of discussions with Prime Minister Manmohan Singh, Finance Minister P Chidambaram and the Planning Commission in connection with the Rail Budget. He is also understood to have discussed the possibility of a fare hike with Congress president Sonia Gandhi.


Bansal is all set to announce a slew of passenger-friendly measures such as improvement in catering service, maintaining cleanliness at rail premises, introducing Braille stickers in coaches for visually challenged passengers and development of stations in his maiden Rail Budget.


With Bansal heading Rail Bhavan and the key ministry back with the Congress party after almost one—and—a—half decade, speculation is rife about announcement of 100 new trains including AC double-decker, extension and increase of some popular passenger services.


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