Stocks
Nifty, Sensex, Bank Nifty to rally further – Monday closing report

Nifty will head higher, as long as, Monday’s low holds

 

We had mentioned in last week’s report that the NSE’s CNX Nifty may put in a rally. Following optimism on most of the Asian indices, the 50-share benchmark back home also showed a positive trend on Monday. The positive opening on the Nifty was followed by a range bound session in the green upto 12.50pm after which it gained further momentum and was pushed higher. By the end of the session, the index hit a three day high and closed near to it.
 
The S&P BSE Sensex opened at 27,656 while Nifty opened at 8,391. The benchmarks moved from the lows of 27,625 and 8,381 to the high of 28,018 and 8,505. Sensex closed at 27,976 (up 517 points or 1.88%), while Nifty closed at 8,492 (up 151 points or 1.81%). Today’s gain on the Sensex has been the highest since 15 January 2015. Bank Nifty too gained momentum today and after opening at 18,160 it moved in the range of 18,089 and 18,393 and closed at 18,362 (up 317 points or 1.76%). However, NSE recorded a lower volume 70.80 crore shares. India VIX fell 1.64% to close at 14.2625.
 
The Reserve Bank of India (RBI), in a discussion paper had said that a bank's Large Exposure (LE) limit in respect of each counterparty, which includes a group of connected counterparties, will be capped at 25% of the bank's eligible capital base. For this purpose, the eligible capital base will be defined as the Tier 1 capital of the bank as against 'Capital Funds' at present. The proposed LE framework will be fully applicable from 1 January 2019. The RBI has placed the discussion paper on the proposed LE framework on its website and has sought comments on it by 30 April 2015.
 
The RBI has relaxed norms for non-performing assets provisioning on Monday according to which now banks can use 50% of their floating provision for specific NPA provision as compared to 33% earlier.
 
Speaking at the Confederation of Indian Industry's (CII)’s 6th Capital Markets Summit in Mumbai BSE chief Ashish Chauhan said that India would need to raise as much as a $100 billion in equity capital a year to meet capital requirements for the country's growth.
 
Credit rating agency Moody’s said the Indian government’s latest plan to revive the stranded gas-based power generation capacity through imports will help save $16 billion worth of investments and banks including IDBI, State Bank of India (SBI) and ICICI are set to be the biggest beneficiaries of the plan.
 
The Railways will increase its freight rates for several commodities including grains, pulses, urea, coal and cement from 1st April as proposed in the Railway Budget 2015-16.
 
Coming back to the Indian stock markets, NCC (9.59%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. Rasoya Proteins (4.92%) was the top loser in the group.
 
Bharti Airtel (3.55%) was the top gainer in the Sensex 30 pack. Out of the spectrum sale recently, the company gained capability to provide 4G services across the country.
Hindalco (1.61%) was the top loser in the Sensex 30 stock. 
 
On Friday, US indices closed in the green. Fed Chair Janet Yellen on Friday said that she expects the Federal Reserve to raise interest rates this year, and that subsequent increases will be gradual without following a predictable path. 
 
Gross domestic product (GDP) expanded at a 2.2% annual rate, unrevised from last month's forecast, the Commerce Department said on Friday in its third estimate. The economy grew at a 5% rate in the third quarter.
 
Except for NZSE 50 (0.56%) all the other Asian indices closed in the green. Shanghai Composite (2.59%) was the top gainer.
 
China unveiled more details and projections for its "New Silk Road" plan to boost trade and economic relations with the rest of Eurasia and Africa. In Japan, the latest data showed that factory output fell by a worse-than-expected 3.4% in February.
European indices were trading in the green. US Futures too were trading higher.
 
Greece's creditors are reportedly studying new reform plans put forward by Prime Minister Alexis Tsipras' government in a bid to secure further bailout funds.
 
Global credit rating agency Fitch Ratings on Friday downgraded Greece's sovereign-debt rating to "CCC" from "B", citing "uncertain prospects of timely disbursement from official institutions".
 
The European Commission's economic sentiment indicator rose by 1.6 points to 103.9. Confidence in the euro zone's economy rose for a fourth straight month in March to its highest since July 2011, a European Commission survey showed on Monday.
 

User

Exercise outweighs negative effects of air pollution
If you avoid morning walks owing to fears related to the bad quality of air, start afresh as researchers from University of Copenhagen have found that exercise can outweigh the harmful effects of air pollution.
 
Despite the adverse effects of air pollution on health, air pollution should not be perceived as a barrier to exercise in urban areas, they added.
 
"Even for those living in the most polluted areas of Copenhagen, it is healthier to go for a run, a walk or to cycle to work than it is to stay inactive," said Zorana Jovanovic Andersen, associate professor from the Centre for Epidemiology and Screening in a paper published in the journal Environmental Health Perspectives.
 
The Danish study included 52,061 people, aged 50-65 years, who participated in the cohort study Diet, Cancer and Health. They reported on their physical leisure activities, including sports, cycling to/from work and in their leisure time, gardening and walking.
 
The researchers then estimated air pollution levels from traffic at their residential addresses. The team observed about 20 percent fewer deaths among those who exercised than among those who did not exercise -- even for those who lived in the most polluted areas or close to busy roads and highways.
 
Air pollution is often perceived as a barrier to exercise in urban areas.
 
"In the face of an increasing health burden due to rising physical inactivity and obesity in modern societies, our findings provide support for efforts in promoting exercise, even in urban areas with high pollution," Andersen added.
 
"However, we would still advise people to exercise and cycle in green areas, parks, woods, with low air pollution and away from busy roads, when possible," she noted.
 
It is well known that physical activity reduces while air pollution increases the risk of premature mortality. This is the first large population-based, prospective cohort study that has examined the joint effects of both physical activity and air pollution on mortality, the authors concluded.

User

Germanwings crash: The cost of not following basics
Germanwings, the low-cost subsidiary of Germany's Lufthansa did not follow basics of a two-person, at all-time cockpit team management regime. This resulted in the co-pilot crashing the plane and killing all 150 people on board
 
The Germanwings air-murder over the French Alps has once again brought into focus the varying standards for aviation safety and security worldwide. It is easy to say that safety and security standards are lax in some of the lesser developed countries. However, it comes as a total shock that the low-cost subsidiary of Germany's Lufthansa did not follow the basics of a two-person at all-time cockpit team management regime.
 
It has been almost a week, since the Barcelona to Düsseldorf flight crashed into a rocky ravine at 700km per hour, in the French Alps, killing all 150 people on board. Prosecutors in France and Germany have suggested that the co-pilot, Andreas Lubitz, deliberately crashed the plane. The suicide-mass murder theory is based on the cockpit voice recorder retrieved from the crash site near the village of Le Vernet, say media reports.
 
In case people are not aware, airlines operating in India are required by law to have at least two persons physically present in the cockpit at all times, come what may, when the airplane is operational. Very often this means a young trainee, a senior pilot on check or refresher, an otherwise eligible to ride in cockpit person with proper certifications and compliances, or in worst case scenarios, an able-bodied member of the cabin crew at the very least. This is In addition to the basics of a pilot and a co-pilot.
 
The fundamental concept behind this is simple - if for any reason one person left inside cannot or will not open the security door, then the additional person can do that at the very least. Reasons can be many - from momentary blackouts to disability to sheer suicidal tendencies. In an airline like Lufthansa going through very disruptive labour troubles caused by pilots over working conditions, it may even have made sense to carry armed guards in the cockpit - this used to be standard operating procedure on ships operating in and around Germany even in the '70s.
 
That this sort of pilot suicide is not something new, though never been so conclusively established, can be inferred from previous cases like Malaysian-370 and Helios-522. Incidentally, the Pilot in Charge of Helios 522, which crashed over Greece due to reported incapacitation of the cockpit crew behind locked doors was also a German national. There was always an allegation that an Air India Boeing 747 crash off Bandra in Mumbai was also due to something like this.
 
People may have forgotten, but cockpit crew used to be a minimum of three and often four people, two pilots, a flight engineer and a navigator. Even today, an airplane's cockpit can take three and often four people on the flight deck. As a matter of interest, as mentioned earlier, foreign ships plying in German waters even as far back as the '70s would have in addition to the ship's crew on the Bridge, a German navigating officer as an additional "pilot" and armed police for contingencies.
 
The other larger issue facing the world of airline transport is what is known as subliminal mind control - something that is no longer science fiction. At its simplest, this is technology, which enables electronic gadgets to take control of a human mind and then instruct it to do something, like with a hypnotised person. That this will not be easy to do for two people at the same time, in a small area like a cockpit, is also a known fact. Mind control is difficult, but it is not impossible, and it is becoming sharper every day. From "rat-men" to highly tech-tools and neurally networked machinery, making a human being a controlled being is not in the realm of fiction anymore.
 
And then there are the very human elements of anger, frustration, depression, and more, including revenge.
 
Speaking with friends in aviation circles, including pilots with decades of flying experience, what emerges is that almost all of them have had episodes of what they would call momentary lapses of reason while working, especially during late night or very early pre-dawn flights. This is in addition to hallucinations, which many of us who have sailed on ships will also agree is not an unknown phenomenon.
 
When all this is known, for an airline like Lufthansa's GermanWings, to leave a human being alone inside a cockpit is not just criminal, but possibly can be put in the same league as co-conspirators. The man in the cockpit could have gone mad and done what he did, for whatever reason, but money was not one of them. However, the people in the boardroom did what they had to do only for monetary reasons.
 
Always, always, follow the money.
 
(Veeresh Malik started and sold a couple of companies, is now back to his first love—writing. He is also involved in helping small and midsize family-run businesses re-invent themselves.)
 

User

COMMENTS

Senior Citizen

2 years ago

Insurance companies will give very tough times to Lufthansa to settle the claims since they were clearly negligent in not acting on disclosed medical facts of their employee. If it is fought in US Court then damages could be unlimited. Further Lufthansa will have to face resistance from passengers.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)