Nifty, Sensex, Bank Nifty still weak - Tuesday closing report

Nifty may rally, if it closes above 8,060, while Bank Nifty may rally on a close above 17,600


We had mentioned in Monday’s closing report that NSE’s CNX Nifty may remain weak and for it to reverse the downtrend, it has to close above 8,100. On Tuesday, the 50-stock index traded below this level, moving in a narrow range for the entire session. 
The S&P BSE Sensex opened at 26,510, while Nifty opened at 8,027. Sensex moved in the range of 26,438 and 26,605, while Nifty moved between 8,005 and 8,057. Sensex closed at 26,481 (down 42 points or 0.16%). Nifty closed at 8,022 (down 22 points or 0.27%).
Bank Nifty opened at 17,413 and moved in the range of 17,393 and 17,561. It closed 17,489.90 (up 57 points or 0.33%). NSE recorded a volume of 68.79 crore shares. India VIX fell 4.63% to close at 18.0100.
Railway Minister Suresh Prabhu has said that the government will invest Rs8.5 lakh crore over the next five years to develop India’s railway services. This is expected to kickstart related manufacturing. 
The Reserve Bank of India (RBI) on Monday issued a notification allowing banks to seize control of a company if a debt restructuring fails and sell their stake in the defaulting firm to recover dues. However, this has hardly any impact on banking stocks.
Coming back to stock markets, KEC International rose 16.83% to close at Rs125.65 on the BSE. It was the top gainer in ‘A’ group on the BSE. It announced order wins worth over Rs1,000 crore. Its transmission and distribution (T&D) business secured total orders worth Rs613 crore while its railways business bagged orders worth Rs288 crore for work in Madhya Pradesh from Rail Vikas Nigam. The cables business got orders worth Rs101 crore.
Apollo Tyres fell 8.03% to close at Rs160.90 on the BSE. It was the top loser in ‘A’ group on the BSE. Vedanta rose 3.11% to close at Rs182.55 on the BSE. It was the top gainer in the Sensex 30 pack. Vedanta Resources Plc signalled on Tuesday that it is considering a merger of two or more of its Indian subsidiaries, namely Vedanta and Cairn India, which could provide the debt-burdened units access to cash from other operations.
Cipla fell 3.35% to close at Rs593.50 on the BSE. It was the top loser in the Sensex 30 pack. Mylan launched generic MDI combination inhaler. The product is deemed bioequivalent to GSK's Seretide inhaler and this is the first generic version of GSK's Seretide Evohaler in UK. According to analysts Cipla had launched this product in in certain EU (non-UK) territories in 2014 and was expected Cipla to be the first company to launch its product in United Kingdom. The launch of first generic version by Mylan is negative for Cipla.
On Monday, US indices closed in red. Concern that the Fed could hike rates for the first time since 2006 as soon as September pulled the US indices lower.
Asian indices closed in the red. Jakarta Composite (2.30%) was the top loser. China's consumer inflation eased in May, while producer prices fell for the 38th straight month, raising concerns about growing deflationary pressures as the economy cools. The producer price index fell 4.6%, the National Bureau of Statistics said on Tuesday, flat against the previous month but missing market expectations for a slide of 4.5%.
European indices were trading in the red. 
US Futures were trading marginally lower. 
HSBC will cut almost 50,000 jobs from its payroll, take an axe to its investment bank and shrink its risk-weighted assets by $290 billion in an effort to improve its sluggish performance, Europe's biggest bank said on Tuesday.


Chief Information Commissioners with short tenure have poor records
With number of pending cases going over 40,000 at the Central Information Commission-CIC and 15,704 Cases pending in the Chief CIC bench, the Commission requires drastic reforms. Plus, the CCIC and ICs must have a tenure of at least three years to justify their appointment 
After keeping the post of Chief Central Information Commissioners (CCIC) vacant for almost 10 months, the union government finally appointed Vijai Sharma, the senior-most Information Commissioner (IC) as the CCIC. However, Mr Sharma, an officer from the 1974 batch of Indian Administrative Service (IAS) is left with less than six months before he retires on 1 December 2015, on attaining the age of 65. 
In the past, between 5 September 2013 to 22 August 2014, we had three Chief Information Commissioners in the Central Information Commission (CIC), under the Right to Information (RTI) Act, who had short tenures.
I have since carried our study based on information available on CIC website. The study suggests that the CCIC, who headed the CIC for a shorter duration, have poor records in terms of disposing cases. During the 11 and a half months period to 22 August 2014, three people, Deepak Sandhu, Sushma Singh and Rajiv Mathur were CCICs and together disposed 893 cases or 165 cases per month on the average. 

Some Observations


1. In 3.5 Months Tenure (5.9.2013 to 18.12.2013):
Ms Deepak Sandhu disposed = 796 Cases: @ Average =227.43 Cases per month

{During this period Pendency Increased by 467 cases to go up to 1,946 cases}

2. In next say 5 Months Tenure: (19.12.2013 to 21.05.2014):

Ms Sushma Singh disposed = 712 Cases: @ Average = 142.4 Cases per month

{During this period Pendency Increased by 1,308 Cases to go up to 3,254 Cases}

3. In next 3 Months Tenure (22.5.2014 to 22.8.2014):

Rajiv Mathur disposed = 385 Cases @ Average of 128.33 Cases per month

{During this period Pendency Increased by 4,397 Cases to go up to 7,651 Cases}

Total cases disposed by three Chief CIC in 11.5 Months are 1,893 cases at an average of 164.62 cases per month

With huge number of Pending Cases (40,019) in CIC and 15,704 Cases pending in Chief IC bench, the Commission requires drastic reforms. This includes the CIC to work on Saturdays like High Court for consolidating the work in registries and ICs finalising orders.
In addition, the CCIC, who also have administrative role at the CIC, must have at least three years of service left before retirement, to justify the appointment.


PVR to acquire DT Cinemas
Film and retail entertainment company PVR Limited on Tuesday announced that it has entered into definitive agreements to acquire the cinema exhibition business of DLF Utilities Limited, which is operated under the brand name of DT Cinemas.
The company has got into the agreement on a slump sale basis for an aggregate consideration of approximately Rs.500 crore, a statement said. 
Ajay Bijli, chairman and managing director of PVR, noted that the deal will add to the cinema-going experience. 
"It has been our strategy to expand our film exhibition business both organically and inorganically over the years. This acquisition is in pursuance of our core strategy to offer a world class cinema experience to the discerning Indian consumer," Bijli said. 
DT Cinemas currently operates 29 screens with approximately 6,000 seats across eight properties in the National Capital Region (NCR) and Chandigarh.
In the next 12 months, DT proposes to add ten new screens at two properties in the NCR. Currently, PVR has 467 screens across 105 locations in 43 cities. As a result of the proposed acquisition, PVR will have a presence in 44 cities with 115 multiplexes and 506 screens.
Sriram Khattar, CEO of DLF Rental Business said: "We are pleased to sell DT Cinemas to PVR which is a high quality provider of cinema experience. Combining our unrelenting focus on providing a wholesome experience at our malls with PVR's deep knowledge of the cinema business, we look forward to continue enhancing our best in class offerings for the customers." 
The proposed transaction will be subject to approval of applicable statutory and regulatory approvals and satisfaction of customary conditions precedent.


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