Stocks
Nifty, Sensex have turned weak again – Wednesday closing report
Nifty has to close above 8,075 for the index to head higher
 
We had mentioned in Tuesday’s closing report that Nifty, Sensex may be headed higher and that if Nifty holds Monday’s lows, it may head for 8,150. The major indices in the Indian stock markets did not improve from Tuesday’s close and the day was marked by lacklustre trading. Finally the indices closed lower than Tuesday’s close. The trends of the major indices in Wednesday’s trading are given in the table below:
 
Caution on quarterly earnings and the likelihood of a US Federal Reserve interest rates hike in December 2015 kept the indices range-bound and to finally close in the red. Uncertainty over Bihar election results was also a factor affecting investor sentiment adversely. Positive Chinese macro-economic data and enthusiastic response to Japan Post's initial public offering (IPO) buoyed the Asian markets elsewhere.
 
Reliance Infrastructure on Wednesday reported an almost 5% increase in its consolidated net profit for the second quarter (Q2) of the current fiscal. The company's consolidated net profit for Q2 stood at Rs451 crore from Rs431 crore in the corresponding quarter of the last fiscal. According to the company, the Q2 net profit of Rs451 crore was achieved despite Mumbai Metro and the cement business incurring a loss of Rs49 crore and Rs50 crore, respectively. However, the net profit for the period under review would have been higher by 16% to Rs501 crore, prior to cement business losses. The company's total income for the quarter ended 30 September 2015 grew by 8% to Rs4,841 crore from Rs4,487 crore in the corresponding quarter of 2014-15. The company's consolidated net worth stood at Rs27,840 crore at the end of the quarter under review.
 
Services sector expansion propelled the overall economic activity in India during October, a key macro data showed on Wednesday. The Nikkei India composite PMI (purchasing managers’ index) which is a key macro data that indicates monthly trends in overall economic activity showed a rise of 52.6 in October from 51.5 in September. An index reading of above 50 indicates an overall increase in the economic activity, below 50 an overall decrease. The composite PMI weighs the average of the manufacturing output index and the services business activity index. It is based on original survey data collected from around 700 companies spread across sectors in India. According to the composite PMI report published by the leading global diversified provider of financial information services -- "Markit", the October expansion trend was the joint-fastest since March. The survey said the latest improvement was driven by services, as goods producers saw growth of production wane.
 
Nestle India on Wednesday said Maggi noodles has cleared the tests ordered by the Bombay High Court at three accredited laboratories and that the effort will now be on to re-launch the popular snack within this month. "We have received the results from all the three NABL (National Accreditation Board for Testing Calibration Laboratories) mandated by the Bombay High Court to test newly-manufactured Maggi noodles samples," the company said in a regulatory filing with stock exchanges.
 
The US jobs data, to be released on Friday, is expected to give cues on whether the US Fed will raise interest rates or not in its December meeting.
The investors were seen to avoid taking long position ahead of the Bihar election verdict which is due on November 8. The foreign institutional investors (FIIs) were net buyers in the day's trade, whereas the domestic institutional investors (DIIs) were net sellers. According to data with stock exchanges, the FIIs bought stocks worth Rs.33.16 crore, while the DIIs off-loaded stocks worth Rs74.9 crore.
 
Sector-wise, S&P BSE healthcare index plunged by 142.46 points, banking index receded by 95.26 points and IT index plummeted by 65.07 points.
On the other hand, the S&P BSE automobile index surged by 306.86 points, metal index gained by 29.24 points and fast moving consumer goods (FMCG) index rose by 22.57 points.
 
The top gainers and top losers of the indices in the Indian stock markets are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

User

TinyOwl fires over 110 employees just before Diwali
The troubles of online food ordering start-up TinyOwl, which has Matrix Partners and Sequoia Capital as investors have escalated. The company has sacked over 110 employees from four centres just before the Diwali without any explanation
 
Just as entire India is getting ready for the Diwali crackers, online food ordering start-up TinyOwl Technology Pvt Ltd has rendered its over 110 employees jobless. What is shocking is these sacked employees were not even given time to think and were told upfront to leave the company. This includes 52 employees from Delhi, 25 from Pune, 20 from Chennai and 21 from Hyderabad.
 
According to information received from employees, on 3 November 2015, they were called to the office for a personal meeting with one of the company co-founders. Then it was announced that these employees would no longer work for TinyOwl and were asked to leave. No formalities or procedures like full and final settlement or any severance payout or notice pay were followed and these employees were sacked on the spot. According to the employees, one of the founders is not even contactable and all his numbers are switched off. 
 
We sent an email to Harshvardhan Mandad, one of the co-founders and chief executive of the online food ordering start-up. However, till writing this story, there was no response from Mr Mandad or TinyOwl.
 
In a blogpost on the company site, Mr Mandad wrote, "...we have restructured the organization to increase the organization’s efficiency and productivity, involving eliminations of certain positions from the company. We scale operational resources back from 4 cities and will move to the e-sales platform going forward to support customer needs and supply and logistics requirements."
 
TinyOwl had organised a town hall meeting on 2 November 2015 in Mumbai for all employees, but it was abruptly cancelled.
 
According to a report from the Mint, the company was looking at layoffs due to delays in closing its next round of funding. The layoffs come four days after TinyOwl raised only Rs50 crore from existing investors Matrix Partners and Sequoia Capital. As of September, the company processed 10,000 orders a day. It works with around 150 chefs and registered 500 orders a day with the average transaction value being Rs25, the report said.
 
Mr Mandad, the CEO of TinyOwl, in an email on 23 October 2015 (seen by Moneylife), has announced that the company was on the verge of closing its next financing, which was a positive sing toward growth for everyone. 
 
Last year, Mandad along with Gaurav Choudhary, Saurabh Goyal, Shikhar Paliwal and Tanuj Khandelwal had founded TinyOwl.

User

COMMENTS

ramchandran vishwanathan

1 year ago

This is a market waiting to go bust. How come investors keep on pouring money only for market share is a million dollar question

TIHARwale

1 year ago

"As of September, the company processed 10,000 orders a day. It works with around 150 chefs and registered 500 orders a day with the average transaction value being Rs25, the report said".

this it self shows chefs are cooking figures what is this 500 orders or 10000 orders a day with 150 chefs 500 orders means lock up only

Multi-state cooperatives’ are helping transfer funds for Ponzi schemes says Standing Committee
Since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds for Ponzi schemes, the Moily Committee said in its report calling for better regulation 
 
In a startling expose, the Parliamentary Standing Committee on Finance has said, multi-state cooperatives under the Agriculture Ministry, operating without any financial regulatory over sight, have become a conduit for transferring huge amount of money for dubious Ponzi schemes that are ripping off the savings of people across India. 
 
The Committee headed by Congress leader M Veerappa Moily categorically says that since 2010, the number and amount of multi-state cooperatives have increased 100 times and now become some kind of a shelter for illegitimate funds.
 
"It seems that the present regulator for multi-state cooperatives i.e. Central Registrar falls under Ministry of Agriculture, which do not have any financial regulatory infrastructure. As number and amount of multi state cooperatives have increased hundred times since 2010, the Committee would suggest that the enforcement aspect with regard to financial schemes operating through multi state cooperatives be shifted to Department of Economic Affairs under Ministry of Finance, since the multi-state cooperatives have now become some kind of a shelter for illegitimate funds, which seemed to have surprisingly escaped the notice of the concerned Authorities, particularly the Central Registrar under Ministry of Agriculture," the Committee said in its report presented to the Lok Sabha Speaker on 7 October 2015. 
 
Interestingly, Nationalist Congress Party leader Sharad Pawar was the Minister for Agriculture in the Manmohan Singh government since 2004. The Central Registrar in the Ministry of Agriculture regulates Multi state cooperative societies.
 
According to the Report, some of the bogus companies running Ponzi schemes, which have transferred their funds and assets to multi state cooperatives include, Samruddha Jeevan Foods Ltd, Sai Prasad, Utkarsh Plotters & Multi Agro Solutions, PGF and PACL, Agri Gold Farm Estates and Saradha Chit Fund.
 
The Moily Committee recommended the government to institute special audit for multi-state cooperatives so that this scam can be unearthed and corrective action taken immediately. "In this regard, the Committee would also suggest that the regulatory regime in respect of multi-state cooperatives should be streamlined and tightened so that they do not become an instrument of diverting and shielding illegal funds from Ponzi companies," the report said.
 
In its deposition before the Committee, the Department of Agriculture & Cooperation was asked about the abnormal increase in multi-state cooperatives. "As and when Reserve Bank of India (RBI) or Securities and Exchange Board of India (SEBI) has informed to this Department that particular society is involving in the collection of deposits from the public/ nominal members, the concerned Registrar of Cooperative Societies (RCS) of the States have been requested to conduct inspection u/s 108 of the Multi-State Cooperative Societies Act, 2002 (MSCS Act) and also the societies have been directed to refund the amount collected from the nominal members," the Department stated.

User

COMMENTS

Benny Stephan

1 year ago

I have invested for my life time savings for 6 years and now its been more than 2 years and I am yet to get the return from Pacl India Limited. A case against pacl has been running for more than 17 years. The legal proceedings are very slow in India. I would also blame the companies for taking advantage of the judicial system in India. I also blame the regulators Sebi and Sat. I also blame the local police in India. I also blame CBI, ACB. I am an Aam aadmi who has been waiting for years to get the returns and nobody seems to be helping us whatsoever to get the returns. Everyone is trying to delay the returns including the company pacl itself and now the congress leader by calling another special inspection.

REPLY

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 1 year ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

Benny Stephan

In Reply to Shirish Sadanand Shanbhag 1 year ago

Thank you Shirish.

Shirish Sadanand Shanbhag

In Reply to Benny Stephan 1 year ago

Contact Moneylife Foundation, certainly you may get some line of action to redress your grievances. Please send your details at
moneylife.in/lrc.html

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)