Stocks
Nifty, Sensex, Bank Nifty getting oversold – Wednesday closing report

There is a chance that the indices may bounce back a bit

 

We had mentioned in Tuesday’s closing report that NSE’s CNX Nifty is set to fall further. On Wednesday, the 50-stock index opened lower and continued to fall gradually until the beginning of the noon session. At 12.09pm, the benchmark hit its intra-day low and then moved in a range.
 
The S&P BSE Sensex opened at 27,231 and after hitting a high at 27,276, moved lower to hit a day’s low of 26,698. Nifty opened at 8,232 and moved from a high of 8,237 to the low of 8,094. Sensex closed at 26,837 (down 351 points or 1.29%) while Nifty closed at 8,135 (down 101 points or 1.23%). Bank Nifty opened at 17,978 and moved in the range of 17,978 and 17,567 before closing at 17,721 (down 256 points or 1.42%). NSE recorded a huge volume of 172.33 crore shares. India VIX rose 4.07% to close at 17.5050.
 
India's services sector fell back into contraction in May 2015 after experiencing growth for six successive months, the outcome of a survey from Markit Economics showed. The seasonally adjusted HSBC India Services Business Activity Index declined to 49.6 in May 2015, from 52.4 in April 2015.
 
Coming back to the stock market, Nestle fell 9.05% and it closed at Rs6,191.10 on the BSE. The company’s product, Maggi noodles, was put to test for containing lead levels exceeding the prescribed limit and use of the taste-enhancer monosodium glutamate (MSG) without proper declaration. The Delhi government has decided to initiate a case against the company for selling an unsafe product and impose a financial penalty for misbranding.
 
ITC fell 4.59% to close at Rs304.25 on the BSE. The Maharashtra government's has decided to ban the sale of loose cigarettes. The state government has also banned chewing tobacco in public places, say reports. 
 
NIIT Technologies rose 3.85% to close at Rs397.45 on the BSE. The stock was the top gainer in ‘A’ group on the BSE.
 
Unitech fell 35.27% to close at Rs8.70 on the BSE. It hit its 52-week low today. It denied on Wednesday what it called "false and misleading" market rumours of the company defaulting on repayments to lenders. It was the top loser in ‘A’ group on the BSE.
 
Coal India rose 0.81% to close at Rs386.70 on the BSE. It was the top gainer in the Sensex 30 pack. Tata Power fell 6.13% to close at Rs70.40 on the BSE. It was the top loser in the pack.
 
On Tuesday, US indices closed marginally lower. 
 
Except for Hang Seng (0.69%), KLSE Composite (0.45%), SET Composite index of Thailand (0.35%) and Straits Times (0.27%) all the other Asian indices closed in the red. Jakarta Composite (1.60%) was the top loser.
 
The HSBC China Services Purchasing Managers' Index rose to an eight-month high of 53.5 in May, HSBC Holdings said with both new orders and employment in the sector rising to multi-year highs. Activity outside the nation's factories during the month also came in above April's 52.9 reading.
 
European indices were trading in the green. 
 
US Futures too were trading higher. 
 
Greece's creditors reportedly reached a consensus on the terms of a proposed deal to put to the Greek government, however, Athens has yet to agree on the terms. Greece faces a €300 million ($327 million) payment to the IMF on Friday.
 
The European Central Bank is widely expected to reaffirm its commitment to its quantitative easing scheme after a monetary policy meeting later in the day.
 

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COMMENTS

V ganesan

2 years ago

today the shares of adani enterprises opened at rs. 573 in a shocking manner.I urge money life to take up the matter and take action with sebi nse and bse to cancel all trades above the price of rs,125. Because I doubt about the credibility of both exchanges.And how one can expect retail participation will grow with this kind of scam.This is because after demerger the price should open between 120 to 130.Lot of ordinary investors lost money without aware of the fact

Will the selection of CIC and CVC finally be a bad joke on transparency?
After nine months of creating a high drama to select the CIC, the apparent choice seems to be an anti-climax. As for the CVC, questions are being raised over his alleged involvement in corruption
 
Senior most Information Commissioner, Vijai Sharma is tippled to be the new Chief Information Commissioner (CCIC) under the Right to Information (RTI) Act while KV Chowdary, former chief of Central Board of Direct Taxes (CBDT) is all set to be the new Central Vigilance Commissioner (CVC), say media reports. If both these reports are true, then it is quite clear that the Modi government is making a mockery of democracy and of the high drama it created for nine months – publishing advertisements for the post of the CIC, forming a Committee to shortlist the applicants and so on.
 
According to reports, these names are understood to have been cleared at meetings that Prime Minister Narendra Modi had on Monday with Congress leader Mallikarjun Kharge. While Finance Minister Arun Jaitley attended the meeting on selection of a CIC, Home Minister Rajnath Singh attended the one on selection of a CVC. Minister of State for Personnel Jitendra Singh was present at the meetings, the reports say.
 
At the end of it, if Vijai Sharma does become the CIC, then it is a bad joke on the transparency movement of this country considering that he has only 179 days left to serve before retiring on 1 December 2015 and by the way, that includes weekends and holidays. Considering the CIC’s tenure is for five years, why is the union government is trying to appoint a near-retiree and carrying out this exercise of selection process once again after barely six months? What about transparency on the short listed candidates and reasons for their rejection? Why is the government hell bent on being opaque? If anyway the senior most IC was to be selected as CIC, why then this inordinate delay?
 
“This means the government must start looking for next CIC from now itself,” says Commodore Lokesh Batra. “This move by the government may be possible to open doors for making Basant Seth as the next CIC – Sushma Swaraj’s preferred candidate, who had come in from the back door during shortlisting of candidates for Information Commissioners in 2012. However, if this happens, there would be a huge controversy,’’ the RTI activist added.
 
According to Pune-based RTI activist Vijay Kumbhar during the selection of information commissioners for Maharashtra, no officer, who would retire in three and a half years, was considered for the post. He said, “Besides, it would take around six to seven months for a CCIC to get his bearing in the office, by which time, if it is Vijai Sharma, it would be time for him to retire. I feel there is a hidden agenda which the government is not sharing with the public and that does not augur well for the RTI movement in India.”
 
As for the selection of former CBDT Chief KV Chowdary as Central Vigilance Commissioner, his image is dented due to his alleged connection with the Ranjit Sinha, the controversial former director of Central Bureau of Investigation (CBI). Last October, the Narendra Modi government appointed Chowdary as an advisor to the Special Investigation Team (SIT), which is probing the black money cases.
 
Prashant Bhushan, in his capacity as co-founder of Swaraj Abhiyan, has issued a press statement comprising details of his letter to Prime Minister Modi, opposing appointment of Chowdary. Following are his objections:
 
* Mr Choudhry’s name figures four times in the list of persons who visited former CBI Director Mr Ranjit Sinha at his official residence. The Supreme Court on 14 May 2015 has said that Mr. Sinha’s meetings and the impact of those meetings on cases being dealt by the CBI, needs to be investigated
 
* During the tenure of former CBI Director Mr Ranjit Sinha, Chowdary’s role was investigated by the CBI in ‘stock guru’ scam.
 
* Mr Chowdary, who was chairman and member (investigation) of Income Tax, was apparently investigating hawala dealer Mr Moin Qureshi, who repeatedly visited Mr. Sinha
 
* Mr Chowdary was the then DGIT, Delhi when the Radia tapes were intercepted and did not take any action on evidence available with him. It was the Supreme Court, which had to intervene and order the CBI to investigate.
 
* As in charge of 2G scam investigation in income tax, Mr Chowdary failed to make any headway in the case, unlike the other agencies like the CBI or the Enforcement Directorate (ED)
 
* Mr Chowdary was also in-charge of investigating HSBC account holders for almost three years. Until Supreme Court appointed the SIT, there were almost no progress in the Income Tax investigation under Mr Chowdary. At the time, when SIT was formed the income tax department had not filed even a single prosecution case against HSBC account holders.
 
*Serious adverse remarks have been made in Mr Chowdary’s performance appraisal reports by three senior officers of CBDT
 
*Mr Chowdary wrongfully reduced the ‘undeclared wealth’ of M/s Flora and Fauna, a company of Ponty Chadha by over Rs200 crore. One of the HSBC account holders so protected was Ponty Chaddha's son-in-law Gurjit Singh Kochar.
 
Bhushan says, “The Supreme Court on 13 May 2015 lifted the stay on the appointment of CVC and Vigilance Commissioners (VCs), after the Attorney General appearing for the government assured the Court that the government would appoint the best person after following a credible transparent selection process.”
 
“The selection of such persons in secrecy and without any transparency by a Committee consisting of the PM, HM and the Leader of opposition shows that there is indeed a bipartisan consensus on corruption and that both the Congress and the Bharatiya Janata Party (BJP) want persons of doubtful integrity, who will be weak and pliable and who have shown a willingness to protect powerful persons, to man such watchdog institutions,” he added.
 
(Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.)
 

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COMMENTS

Anurag

2 years ago

Well, the joke actually played out as expected. A soon to retire bureaucrat is now the CIC but very soon the chair will be empty and will remain so for a long time once again which will result in impeding the functioning of the Chief Information Commission. A very clever move by the Government of India and the Presidents Office, I should say.

Gracy Abreo

2 years ago

Were the CIC and CVC Commissioners elected in a free and transparent manner, if yes, then it is not a joke.

Maharashtra cracks the whip on Maggi
Maharashtra has cracked the whip on multinational Nestle's Maggi brand of noodles and samples collected from around the state have been sent for testing in government laboratories, a minister said Wednesday.
 
Food & Civil Supplies Minister Girish Bapat said that the samples have been picked up from shops and retailers in Mumbai, Thane, Nashik, Pune, Nagpur and are being tested in government labs in Mumbai and Pune.
 
"The samples are being tested mainly for two aspects - the metallic lead content and the amount of ajinomoto salt which is used for the flavouring of the noodles. We expect the reports by Friday. We shall accordingly decide on the future course of action," Bapat told mediapersons here.
 
Maharashtra Food & Drugs Authority (FDA) officials said that 25 samples, including four from Mumbai and Thane, and 15 from Pune and the rest from other cities are being tested in the FDA lab in Mumbai and a central government lab in Pune.
 
"If the reports of the Maggi noodles and the accompanying masala in it are positive, then we have the powers to ban the product from sale or distribution in the markets. The FDA can also initiate action against the celebrities endorsing the product in such a case," an official, requesting anonymity, told IANS.
 
Bollywood megastar Amitabh Bachchan said that he had endorse Maggi in an ad two years ago but had not so far received any notice from any government authorities on this.
 
"When I get the notice, I shall fully cooperate with the concerned authorities," Bachchan said during an event Tuesday night.
 
Another brand ambassador and former film star Madhuri Dixit-Nene said she was very concerned after recent reports and met with the Nestle team on this.
 
"Nestle explained that they always place the consumer first and have the highest quality standards...Nestle has reassured me that they adhere to stringent testing for quality and safety and working with the authorities closely," Dixit-Nene has said in a series of tweets in the past couple of days.
 
Emphasising her own love for the product she has endorses, the retired actress added that like most of India, "I have enjoyed Maggi noodles for years."
 
Meanwhile, though there are no reports of any malls or food plazas withdrawing Maggi from their shelves, some shops and retailers have reported a sharp drop in demand in the past few days.

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