Nifty, Sensex, Bank Nifty close to a short-term bottom – Weekly closing report

A close above 8,400 in Nifty will mean a short-term rise


The S&P BSE Sensex closed the week that ended on 24th April at 27,438 (down 1004 points or 3.53%), while the NSE’s CNX Nifty closed at 8,305 (down 301 points or 3.49%).
In the previous week, we had mentioned that the 50-stock Nifty is still under pressure and will have to close above 8,700, as a first step for the downtrend to reverse. 
On Monday, a sudden plunge in the last hour of the session made the Nifty hit a 12-day low. Nifty closed at 8,448 (down 158 points or 1.83%). Ratings agency Fitch said the likely upturn in the India's investment climate and reduction in interest rates will improve the property market by the end of March 2016 and provide relief to the debt-ridden developers.
The 50-stock index witnessed a volatile session Tuesday and closed in the red for the fifth consecutive session. Nifty closed at 8,378 (down 70 points or 0.83%). The Indian government plans to auction 69 marginal oil and gas fields owned by state explorers ONGC and Oil India, Oil Secretary Saurabh Chandra said.
On Wednesday, Nifty took support slightly below the level of 8,300 as we had mentioned in Tuesday’s closing report and closed in the positive breaking the trend of five days of consecutive loss. Nifty closed at 8,430 (up 52 points or 0.62%).
The India Meteorological Department (IMD) said that quantitatively the seasonal monsoon rainfall is likely to be 93% of the long period average (LPA) during the June-September southwest monsoon season this year, with a model error of plus/minus 5%. The probability for below normal rainfall is 35%, for deficient 33% and for normal 28%.
Against our anticipation, on Thursday Nifty gave up its gains. The benchmark closed at 8,399 (down 31 points or 0.37%), even though the finance ministry clarified that foreign portfolio investors domiciled in countries that have signed double taxation avoidance treaties with India will not have to pay minimum alternate tax. 
On Friday, the loss on the Nifty continued especially after Infosys results disappointed.
Although it reported a marginal growth over the March 2014 quarter, its top line and bottom line fell as compared to the December 2014 quarter. Nifty closed 8,305.25 (down 93 points or 1.11%). We expect the market to remain weak but it is very close to a short-term bottom. If Nifty does not go below 8,250, it may rally for the short-term.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


Our oceans worth $24 trillion: WWF

The report titled "Reviving the Ocean Economy" attempts to estimate the value of the oceans and proposes steps for its safeguarding


Ocean assets such as fisheries, shipping lanes and tourism are worth $24 trillion and produce an annual value of $2.5 trillion from their outputs, says a latest report by the conservation group World Wide Fund (WWF).
The report titled "Reviving the Ocean Economy" attempts to estimate the value of the oceans and proposes steps for its safeguarding.
"If the oceans were a country it would be the seventh-largest economy on the planet. I do not think that is surprising to any marine scientist but it may come as a surprise to a lot of people outside marine science," said marine scientist and lead author Ove Hoegh-Guldberg, director of the University of Queensland's Global Change Institute in St Lucia.
"Being a natural scientist, I am suspicious of economists."
"But when you look at different numbers, this is not too far off what other people have found in terms of components of the total value," Hoegh-Guldberg noted.
The report looks at the oceans as one system which has not been the case in previous efforts.
"In the past, we have missed that opportunity to look at the interactions between local and global factors, between fishing and ocean chemistry and so on," he added.
The report comes up with a very large number despite the fact that we can not value the many intangibles such as the production of sand along coastlines, the value of oceans in terms of their contribution to cultures, and so on.
"We do not make any apologies for the fact that we cannot get the real value. But we can get a number which we know is the minimum, and in this case it is a very large number," he continued.
The eight proposed actions in the report include committing to ocean targets in the UN sustainable development goals, agreement on avoiding damage from climate change and a new alliance of maritime states.
"The eight actions are achievable. We have already had a big push at the international level to establish sustainable development goals focused on the ocean," the authors emphasised.


Mumbai DP fiasco: Blacklist, recover Rs12 crore from consultant, demands activist
The companies, which prepared the controversial and now scrapped development plan for Mumbai, should be blacklisted and the government must recover Rs12 crore paid to them, demands activist Anil Galgali
Following the hue and cry from political parties, non-government organisations (NGOs) and several citizens, the Maharashtra government decided to scrapped the Mumbai Development Plan (DP) 2015-2034. However, activists are demanding to blacklist and recover the money paid to consultant companies involved in preparation of the. Surprisingly, while all mainstream media are highlighting the DP issue, no one is naming the companies that prepared it.
Right to Information activist Anil Galgali, in a letter to Maharashtra chief minister Devendra Fadnavis, said, "The company, which was contracted to create a futuristic Development Plan for Mumbai, came out with a draft plan which could have destroyed Mumbai and led to a crisis should be black listed and the payment of Rs12 crore made out to them should be immediately recovered."
According to Galgali, the BMC started the process of the new DP in 2009 onwards, when initially SC India Ltd was appointed as consultant. "Since the performance of the company was far from satisfaction, the job of DP was given over to another company Aegis Geo Plan. Both the companies cost Rs12 crore to the BMC. In spite of receiving the payment, the companies did not perform on the basis of practicality and ground reality, due to which the DP conceived by them was error prone and disastrous," the activist said.
In his letter, a copy marked to chief secretary Swadheen Kshatriya and BMC commissioner Sitaram Kunte, the RTI activist drew attention to the previous 'error free' DP for 1991-2011 that was prepared by about 80 engineers and officials from the municipal corporation.
The state government has asked the BrihanMumbai Municipal Corporation (BMC) to draft a fresh development plan within four months. 



D S Ranga Rao

2 years ago

I feel the Commissioner and the Mayor, MCGM should take the hit and resign forthwith besides penalising the Consultant for such a faulty report.

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