Nifty, Sensex continue to head up: Thursday closing report

Indian markets are headed for a new high. Watch for a close below 6,230 for the uptrend to break

The stock markets remained positive throughout much of Thursday’s session before a late rally extending the markets to end positive for the third day in a row, amidst heavy volumes on the derivatives expiry day. The sentiment remains very positive as of now and the indices will take a crack at an all-time high soon.

The Sensex and the Nifty opened at 21,000 and 6,237, respectively, almost flat. And it hovered little above this level for much of the trading session. The Sensex and Nifty hit an intra-day low at 20,991 and 6,235, respectively. However, a surge towards the end of the trading session brought the market back to life. Sensex and Nifty hit their respective intra-day highs of 21,205 and 6,309 respectively, before closing at 21,164 (up 130 points or 0.62%) and 6,299 (up 47 points or 0.76%) respectively.

However, the breadth of the market was barely even, with slightly more advances than declines, signifying resistance. Out of 1,218 stocks, 636 were up, 515 were down and 67 were unchanged. The volumes on the National Stock Exchange was seen at 89.94 lakh shares among the highest on a derivative expiry day when volumes are much higher than other days .

All NSE sectoral indices were in the green except for pharmaceuticals which was down 1.44%. PSU Banks finished strongly and shot up 7.40%.

Among the Nifty stocks, 35 stocks ended in the green. The top five gainers were Bank of Baroda (up 10.98%); PNB (9.44%); SBIN (4.35%); JP Associates (4.14%) and IDFC (3.48%). The top five losers were Dr Reddy (down 3.49%); Ambuja Cement (2.80%); Sun Pharma (1.71%); Lupin (1.68%) and Ranbaxy (1.31%).

The key moment for markets, the decision of the US Federal Reserve to maintain status quo in its bond purchase program, came and went without much fanfare as the outcome was expected. But many were disappointed. A reading between-the-lines of the Federal Open Markets Committee statement indicates a vague idea of tapering some time in the future based on data.

Meanwhile, the Euro region recovery remains questionable as unemployment numbers were discouraging, at 12.2%, a record high in September, though inflation did slow down. The ECB announced that existing swap lines with central banks will be permanent, indicating that all options are on the table in case of crisis.

Most European markets were seen trending higher. Similarly, most Asian markets were down, with only New Zealand up by 0.86%. US Futures were flat.


Pay Rs500 and get an Aadhaar: IndiaNews' sting operation

In what appears to be the tip of an iceberg, the sting operation by IndiaNews highlights dangers of giving 'Aadhaar' to illegal immigrants that would help them to get all benefits meant for Indian citizens

IndiaNews, a Hindi TV news channel has unearthed a scam where anyone can buy Aadhaar or the unique identity number by paying just Rs500. According to a sting operation carried out by the channel in Noida, one person Samir (who is allegedly an employee of Smart Chip Ltd) used to provide Aadhaar letter without taking any proof from the applicant.


The report says Samir was issuing Aadhaar letters to even non-Indians on payment of Rs500 or more.


As per Unique Identification Authority of India (UIDAI) the person enrolling for its UID number scheme, has to either submit proof of identity (POI) or address (POA), date of birth and proof of residence (POR). This however, can be sidelined as UIDAI says "Resident who does not have POI and POA may get enrolled through an Introducer/ Head of Family".


IndiaNews is run by Kartikeya Sharma, who recently bought News X and The Sunday Guardian.




4 years ago

It is a little sad to state that you make outrageous statements like 'The report says Samir was issuing Aadhaar letters to even non-Indians on payment of Rs500 or more.'
No individual can issue an Aadhaar letter.
It is issued by UIDAI.
Seems like there is a lot of hearsay in this report and hardly anything concrete.
Aadhaar letter and Aadhaar enrollment letter are 2 different things.
Do not try to sensationalize such inaccuracies


Vaidya Dattatraya Vasudeo

In Reply to May 4 years ago

You seem to know the thing well. What are the cross-checks in the system. Does it have a record who can be held responsible for bypassing the documents or accepting unverified documents. What punishments can be imposed on such persons. How long could it take. Which authorities, government or out-sourced organization are responsible.

I feel it a good scheme to be able to identify each and every person. The bad thing is there is no distinction between Indian Citizen and outsiders. Once a person gets Aadhar Card, he has access everything in India, such as Pan Card, Bank Account, Proof of Residence, Proof of Identity, Gas Registration, Election Card and may be Passport too. Bharatmata Ki Jai. ??


In Reply to Vaidya Dattatraya Vasudeo 4 years ago

Dear Vaidya - Cross checks to the best of my knowledge (based on all info provided on Aadhaar web-site) include various demographic data check which includes automated and manual checks, biometric data check again automated and manual (if automated returns a result which requires manual check of the enrollment packet)and then it goes on for a few other checks before which it is processed for Aadhaar number. These are some of the many other reasons why it takes 60-90 days for an Aadhaar applicant to know whether his application has been accepted or rejected.

At every stage in the processing of the aadhaar application, logs of all activities are available for any verification and traceability purpose. Each log contains details of the system, process or person who processed the enrollment packet. Punishments have been meted out to various entities involved in the system for non-compliance to the processes laid down which include a permanent record of the incident and at times even legal proceedings have been initiated with jail terms being served. How long such actions can take are left to our system which I am sure you are aware of and how it functions. All entities involved in the operations, technology, processing, storing and transferring of any enrollment application or aadhaar generation are responsible. All this available on http://www.uidai.govein

Yes, while there is still doubt on whether it can be given to any resident who has been in India for more than 6 months, at the end of the day, every resident would be identified by their biometrics.

Jai hind. This is a good program if operated and managed in the spirits it was meant for and for any political purpose.

Export outlook for sugar industry – diversification needed for positive development

Following the recommendations of Rangarajan Committee, Karnataka took the lead in setting up Sugar Control Board to fix cane price based on prices realised for sugar and allied products. But the process for fixing sugarcane prices has not been smooth so far

For the 12 months ending in September, India's sugar production amounted to 25.14 million tonnes (mt), whereas it was 26.34 mt during the preceding year. This shows a decline of 4.5%, resulting in a drop in crushing and recovery, due to less rainfall both in Maharashtra and Tamil Nadu. According to the Indian Sugar Mills Association (ISMA), 526 sugar mills crushed 250 million tonnes of sugar cane recovering about 10.03% sugar. It was slightly better last year at 10.25%.


Uttar Pradesh produces 7.5 mt of sugar and the average cost of sugar production in UP is estimated at Rs35 per kg during 2012-13 and during the year in the domestic market sugar fetched Rs29 per kg. Part of the loss was recovered by selling ethanol, molasses, pressmud and power generated from baggasse.


According to the industry and cane growers, profit from molasses is higher than sugar and so the private industry resorts to paying advances upfront to farmers to ensure supply of cane rather than follow the state advised price (SAP)!


For example, the SAP fixed by the UP government in the 2012-13 season was Rs280 per quintal (or Rs2,800 per tonnes). Millers have claimed that this rate is very uneconomical considering other cost factors such as the purchase tax, commission to cooperative societies that procure the sugar cane, transport cost to factory as this amounts to Rs295 per quintal. What about the other expenses incurred by the mills in terms of wages, chemicals, packing materials, and maintenance costs of machinery, spare replacement, marketing and interest costs on borrowed funds?


Even assuming the base cost of Rs280 per quintal, when the above factors are added on, the actual cost exceeds Rs34 per kg, depending on the mill.


Sugar consumption in India during 2012-13 rose slightly higher than the previous year by a mere 3.6% to reach 22.8 mt. With a brought over balance the opening stock this year is 8.85 mt and India can easily afford to export 2 mt of raw sugar. Already, the industry has made export commitments for over 300,000 tonnes and more are expected in the next couple of months.


One problem that has caused heartburn in the industry refers to the import policy that permits sugar imports on a 15% duty. There is enough surplus sugar in the country and it is in our interest to export rather than import, and if at all some sugar in specialized forms (or types) are allowed to be imported, the duty structure should be revised upwards to say 40%, according to Abinash Varma, director general of ISMA. Rightly so.


In the meantime, trouble is brewing over the price of sugar cane, as cane growers have been demanding higher price as the cost of cultivation has gone up, but the millers are unwilling to pay higher than Rs2,400 per tonne, which was the rate available during the last crushing season. In fact, growers in Karnataka are demanding Rs300 per quintal as against Rs280 per quintal last year. Maharashtra farmers are seeking Rs320 (against last year’s Rs260), while Haryana has fixed Rs301 per quintal. As we can see the rates are not uniform and the farmers/ growers are demanding higher prices. This is because diesel and fertiliser prices too have gone up!


Based on the recommendations made by the Rangarajan Committee, Karnataka took the lead in setting up Sugar Control Board to fix cane price based on prices realised for sugar and allied products. But the process for fixing the sugarcane prices has not been smooth so far. As the festive season approaches, sugar prices in the retail market have come down to Rs31-32 per kg level.


The major problem faced by the mills in UP, which is India's largest sugar producer, is that the farmers are demanding more for their cane, and seeking prompt payment, whereas the law provides that settlement may be made within 14 days of delivery of the cane. Except for a few mills, most depend upon borrowed funds in settling dues to farmers, who claim that they have arrear payments due to them from mills for the last season!


If a detailed study is made of the Rangarajan committee's recommendation, it will be found that they had recommended that farmers be entitled to 75% of the ex-mill value of sugar. But the recovery factor is about 10% (it varies from 9.5% to 9.8%). This will actually work to be around Rs225 per quintal, as against the Rs280 they got earlier. Therefore, establishing a rate for sugar cane is not an easy task, even state-wise, let alone making anything like this applicable on an industry-wise or uniform basis for the whole country. This would be impractical and will not be acceptable.


The other issue that needs to be tackled at the same time is the question of

oil marketing companies (OMCs) increasing their purchase of ethanol from mills to blend with petrol. Five percent blending has been made mandatory from January this year, but if based on the last six months experience, it can be increased to 10% blend, our savings on imports will reach an estimated $700 million. This will give mills the extra boost to cover up their loss. So far, OMCs have called for tenders to supply 1,332 million litres of ethanol and the government may direct them to increase this to help import substitution.


In the meantime, the government must encourage the industry to export upto

3 million tonnes of sugar; instruct OMCs to increase their offtake of ethanol by making it mandatory for them to use 10% blend instead of 5% as at present, and leave it to State sugar control boards to fix reasonable rates for cane so that both growers and millers are happy.


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)


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