Stocks
Nifty, Sensex in a crash mode – Thursday closing report
Investors are in a selling frenzy all over the world
 
We had mentioned in Wednesday’s closing report that Nifty, Sensex were oversold and that if the US market heads higher, Indian markets may follow suit. However, US stocks closed weak on Wednesday and the major Indian indices in the stock markets crashed by more than 3%. The trends in the major indices in the Indian stock markets on Thursday are given in the table below:
 
 
Poor corporate results, combined with falling European indices led to a selling frenzy pushing Nifty below 7000 and Sensex below 23,000. The selling pressure was accelerated by absence of any fresh positive trigger and below expected third quarter (Q3) results by the likes of banking major -- State Bank of India (SBI). The decline of crude oil prices below $30 a barrel (one barrel is equal to 159 litres) kept sentiments subdued. Investors' doubts over the central government's ability to perk up investments dragged the markets lower. In addition, a weak rupee unnerved investors. It opened lower at 67.95 to a US dollar from its previous close of 67.84 to a greenback. 
 
The weakness in rupee indicates massive flight of foreign funds from the equity markets. Investors' confidence was further eroded by the comments made by US Fed chairman Janet Yellen to the US House Financial Services Committee on late Wednesday. During her semi-annual monetary policy testimony to the committee, Yellen said that the US is unlikely to go in for a stimulus and that the rate hike cycle may continue, depending on the data. The Dow Jones Industrial Average fell 99.64 points, or 0.62%, to 15,914.74. The S&P 500 edged down 0.35 point, or 0.02%, to 1,851.86. The Nasdaq Composite Index rose 14.83 points, or 0.35%, to 4,283.59. "With gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace in coming years and that labour market indicators will continue to strengthen," Yellen said in a testimony before the Committee on Financial Services of the US House of Representatives on Wednesday. But she acknowledged that financial conditions have become less supportive of growth, "with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar. These developments, if they prove persistent, could weigh on the outlook for economic activity and the labour market," Yellen said. Yellen's testimony failed to offer any signal on whether the central bank will change the interest rate on its next policy meeting on March 15-16. She only repeated that the actual path of the interest rate will depend on incoming data. Overseas, European equities rebounded Wednesday. German benchmark DAX index at Frankfurt Stock Exchange jumped 1.55%, while British benchmark FTSE 100 Index rose 0.71%.
 
Leading pharmaceutical firm Cipla Ltd on Wednesday said its standalone net profit for the quarter ending December 31, 2015 slumped by 11.02% at Rs265.98 crore against Rs298.95 crore in the same period last fiscal while consolidated profits were higher. According to the unaudited quarterly results posted on the Bombay Stock Exchange (BSE), Cipla earned a total income of Rs2,677.72 crore in the quarter under review compared to Rs2,466.23 crore in the corresponding quarter of 2014-15. The company incurred total expenses of Rs2,460.80 crore in the quarter as against Rs2,082.22 crore in the year ago quarter. On a consolidated basis, Cipla clocked a net profit of Rs343.20 crore against Rs327.85 crore while total income rose to Rs3,106.55 crore in the reviewed quarter from Rs2,765.46 crore in the last quarter.
 
Around 35,000 jewellery shops in Tamil Nadu and Puducherry downed their shutters on Thursday in protest against the central government's stipulation to provide PAN card on purchases over Rs200,000, said a senior official of All India Gems and Jewellery Trade Federation (GJF). "The PAN card rule came into effect from January 1, 2016 onwards and since than nearly 35% of the business has gone down," N. Anantha Padmanabhan, zonal chairman (southern region) told IANS on Wednesday. While jewellers across the country downed their shutters on Wednesday, the protest in Tamil Nadu and Puducherry has been fixed for Thursday. "We do not understand the rationale for bringing down the PAN card submission limit to Rs200,000 from Rs500,000 for jewellery whereas increasing the limit for real estate transactions from Rs500,000 to Rs10,00,000," he said, noting it is "common knowledge that unaccounted money is housed in real estate than in jewellery". Padmanabhan said the trade is not against PAN card submission but against the Rs200,000 limit.
 
"We have no issue if PAN card submission is made compulsory for purchase of gold coins or bars. But in the case of jewellery, nearly 70% of the purchases are made by the villagers," he said. In India, only around 20 crore people have been issued with PAN cards whereas jewellery is bought by almost all the Indians, he said. Many in villagers do not have a PAN card but gold jewellery is a must in the case of weddings or festivals in Indian families, Padmanabhan argued. According to him, the government can implement the PAN card stipulation in stages.
 
Cement major Ambuja Cements on Wednesday posted a decline of 66.53% in its stand-alone net profit which stood at Rs.109.96 crore for the quarter ended December 31, 2015. The company had earned a net profit of Rs.328.59 crore for the quarter ended December 31, 2014. According to the company, its total income decreased by 1.06% to Rs.2,379.22 crore from Rs.2,404.85 crore for the quarter ended December 31, 2014. Further, the company's board of directors recommended a final dividend payment of Rs.1.20 per equity share. The total dividend for the year 2015 including the interim dividend of Rs.1.60 per share now stands at Rs.2.80 per share. The company had paid a total dividend of Rs.5 per share in 2014. The company’s shares closed at Rs193.55, down 0.74% on the BSE.
 
The top gainers and top losers of the major Indian indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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COMMENTS

Sanjeev Dhabre

1 year ago

"Nifty, Sensex in a crash mode " pl write such news during trading time pl don't wait until evening. I would have not purchased today :(

Couch potato? Your brain may shrink as you age
New York : Do you love to spend more time watching TV or movies and hate to exercise? Go hit the ground running as poor physical fitness in middle age may accelerate brain ageing in just two decades, warn researchers.
 
"We found a direct correlation in our study between poor fitness and brain volume two decades later which indicates accelerated brain ageing," said study author Nicole Spartano from Boston University School of Medicine in the US.
 
People with poor physical fitness often have higher blood pressure and heart rate responses to low levels of exercise compared to people with better fitness.
 
For the study, published in the journal Neurology, 1,583 people were enrolled with an average age of 40 without dementia or heart disease and took a treadmill test. 
 
They went through another test two decades later along with MRI brain scans. 
 
The researchers also analysed the results when they excluded participants who developed heart disease or started taking beta blockers to control blood pressure or heart problems.
 
The results showed that those who performed poorly on the treadmill test had brain volume smaller two decades later -- equivalent to two years of accelerated brain ageing.
 
When the people with heart disease or those taking beta blockers were excluded, lower physical performance was associated with reductions of brain volume equal to one year of accelerated brain ageing, the researchers noted.
 
The study also showed that people whose blood pressure and heart rate went up at a higher rate during exercise were more likely to have smaller brain volumes two decades later. 
 
"This showed that poor physical fitness causes a loss of brain volume," Spartano added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Why lovers buy V-Day presents when come with free gifts
New York : You are more likely to skimp on a Valentine Day gift while choosing it for a loved one if it comes with a free gift, finds a new study which may have implications for merchants, retailers and marketers.
 
Just as people are more likely to give more to close friends than to strangers, people may be more likely to give less to close friends than to strangers if there is a mutual overall benefit for doing so, said the study published in the Journal of Consumer Research.
 
"The tendency is rooted in a friendly intention of trying to maximise the total benefits for the pair, or the so-called "self-other collective,'" said the team from universities of Chicago and Florida.
 
To understand this, seven experiments were conducted to explore different kinds of relationships - including naturally occurring friendships and those developed in the lab. 
 
The activities in the experiments included sampling chocolates, getting massages, sharing cabs and choosing airline mileage programmes.
 
The results of each experiment supported the hypothesis that because people focus on total benefits when making decisions about how to allocate resources between themselves and people they're close to, they choose the option that benefits themselves.
 
In one experiment, 63 University of Chicago undergraduates were invited to enter a raffle in which each winner and one person they knew would sample gourmet chocolate truffles. 
 
They had to choose between two differently distributed prizes. 
 
In Package A, the winner would receive seven truffles and the other person three, for a total of 10 truffles. 
 
In Package B, the winner would receive two truffles and the other person six, for a total of 8 truffles. The truffles could not be shared.
 
When participants knew they'd sample the truffles with someone they felt close to, almost two-thirds chose the package where they would receive more truffles. 
 
But when participants anticipated sampling truffles with someone they felt less close to, the fraction flipped, and only about one-third chose that option.
 
Although consumers generally spend more on gifts for people they are close to, the researchers say, "they might also be more influenced by discounts, sales, and other saving opportunities" when buying for those loved ones.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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