Stocks
Nifty, Sensex in no man’s land – Thursday closing report
Nifty may drift sideways for a few days before a bigger move
 
We had mentioned in Wednesday’s closing report that Nifty, Sensex were getting overbought and that the rally has been on lower volumes. Snapping six consecutive sessions' rally, key Indian equity market indices ended in the red. 
 
 
The market fell by about 0.6% without any negative input from the government or RBI (Reserve Bank of India). The 100-scrip and 200-scrip indices were lower by 0.62% and 0.58%, respectively. The mid-cap index was lower by 0.32% and small-cap stocks were lower by 0.18%. In Thursday's trade, selling pressure was seen in capital goods, energy, IT and oil and gas sectors. Sector-wise, the S&P BSE capital goods index dropped by 1.70%, energy index fell by 1.56%, IT index slipped by 1.33% and oil and gas index went down by 1.05%.
 
Foreign institutional investors' continued interest in equities ensured that falls were limited, despite the volatility that also saw profit booking early in the day. However, more stocks were seen declining in NSE, when compared to those that advanced.
 
The major Sensex gainers on Thursday were: HDFC, up 1.91% at Rs.1,152.60; Asian Paints, up 1.84%  at Rs.893.15; Maruti, up 1.39% at Rs.3,627.15; and Bharti Airtel, up 1.10% at Rs.338.80. The losers were: BHEL, down 3.07% at Rs.104.35; Reliance Industries, down 2.87% at Rs.1,012; Infosys, down 2.76% at Rs.1,145.95; and GAIL, down 2.50% at Rs.341.35. Among the Asian markets, Japan's Nikkei was higher by 1.26%, while Hong Kong's Hang Seng receded by 0.06% and China's Shanghai Composite Index ended lower by 2.03%. The European Central Bank on Thursday cut interest rates again, dropping its key lending rate to zero while pushing its deposit rate further into the negative. ECB is also ramping up the size and scope of its asset-buying programme to include corporate debt. It also introduced a fresh round of cheap, long-term loans for eurozone banks. The initial reaction of the market was euphoric. But later in the press conference, when ECB chief Mario Dragi said that this could be the last time, rates were being cut, the stocks receded.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given below:
 

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Rajya Sabha passes the Real Estate Bill, which will bring in much needed transparency in the sector
The government accepted as many as 20 amendments to the measure as proposed by a Rajya Sabha Select Committee
 
The Real Estate Bill, proposing a Real Estate Regulatory Authority, was approved by India's upper house of parliament after the government accepted as many as 20 amendments to the measure as proposed by a Rajya Sabha Select Committee.
 
The Bill, pending before parliament since 2013, aims to protect the interests of property buyers from unscrupulous promoters and regulate the real estate sector.
 
The legislative measure will now go to the Lok Sabha for its approval.
 
Anuj Puri, chairman & country head, JLL India said, "The real estate industry welcomes the major reform that promises to bring in much-needed transparency and accountability to the rather opaque sector. It will create a much-needed consumer right protection umbrella for buyers of real estate, thereby increasing consumer confidence as well as creating lasting developer brands strong on quality and timely delivery of their projects.
 
As there will be strict punishment for errant developers as well as fines for project delays and faster redressal to consumer complaints, the problem of unscrupulous elements in the industry will be addressed. Norms on size of projects had been relaxed from 1,000 sqm to 500 sqm, and further reduction in size can be bought under the purview of the regulator by state governments.
 
A single-window clearance is needed now, without which there may be cases where bona-fide delays by developers may still result in an unfavourable penalty. The time taken to get many environmental, state-level and municipal-level clearances have afflicted developers for long. Without ensuring that the approval process is not delayed by civic agencies’ inaction or setting up a single-window system, the regulator may inadvertently add another layer to the longer processes already delaying projects”.
 
The Real Estate (Regulation and Development) Bill, 2015 ( RERA Bill) one of the  most important pro-consumer legislation of the Government was passed in the Rajya Sabha, said Rajeev Chandrasekhar, who was the Member the Select Panel that examined and made suggestions to the RERA Bill and provided crucial inputs to the Bill. Speaking in Parliament he said,  “by creating a much needed regulator for the sector at the state and central levels, this Government has initiated the crucial first step to protect consumers from the prevalent opaque and fraudulent practices that have so far characterised this sector in India.”
 
Mr Chandrashekar further said the RERA Bill formally enshrines consumer rights and builder obligations in law and also boosts the industry by creating a framework of competition, efficiency and investments for the sector. Pointing out that the Bill is also good for investors because it brings order and rules to the chaotic real estate sector which has many fly-by-night operators, Rajeev Chandrasekhar  said  the Bill will ensures builders to focus on quality, customer loyalty as attributes around which their business is built, not just fixing local authorities and getting plan approvals. It also puts the onus on builders to only start marketing projects after all approvals are received, reducing the volatility and risk to consumers.
 
“The passing of Real Estate Bill, 2016 in Rajya Sabha is a landmark step towards enhancing the credibility of construction industry by bringing in transparency and accountability in execution of projects. I hope this bill will put in place an effective regulatory mechanism that would safeguard the interest of consumers as well as provide protection against fly by night operators. The passing of bill should enable timely approval and execution of projects which will raise the confidence of consumers and also give a huge boost to the growth of real estate sector”, said Mr. Harshvardhan Neotia, President, FICCI.

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COMMENTS

manoharlalsharma

1 year ago

what will be change it will one more duck and expansive as one MOFA already there in Maharashtra. because this part of the country run on Maharastrians and non Maharastrians.

Shirish Sadanand Shanbhag

1 year ago

This bill is going to be a paper dog.
Unless a strong, quick and effective enforcement authority comes to enforce this real estate bill, it will not dither builders from looting the unscrupulous flat buyers.
Builders should sell the flat on carpet area basis.
Government should work out some formula in deciding the rate of selling the flats.
For the sake of stamp duty, Government calculates the market value of the flat. Then, why this value is not made compulsory to sell the flats?
Parking spaces, even by Tata Builders are sold. Not only that, if flat buyer is not ready to buy a parking, then flat is not sold. Then why not to make parking is salable commodity in Building Industry?
Earlier, Pugree system was illegal. It took almost fifty years to the Government to make Pugree system as legal system. In the same way, let parking be the salable commodity in the Buildings.
There should be fast track courts to redress the grievances of Flats, be it in residential, Commercial or Office premises.

Twitter doling out cash to employees to stop them from quitting: Report
New York : Micro-blogging website Twitter is reportedly offering its employees cash bonuses of $50,000 to $200,000 so that they stay with the company for at least a year, media reported.
 
The social media firm has also been offering additional restricted stock to employees companywide, extending from the upper ranks to junior level employees. 
 
The move is seen as an effort to stop brain drain at a time when the firm's stock has lost two-thirds of its value since its 52-week high of $53.49 in April 2015, Wall Street Journal (WSJ) reported.
 
The move comes at a time when the company is facing stalled user growth and growing competition, the WSJ report added. 
 
A sequential decline in its monthly active users (MAUs) base triggered a sharp fall for Twitter shares as the company announced its fourth quarter results recently.
 
The micro-blogging site reported 305 million monthly active users for the fourth quarter, compared to 307 million in the third quarter that excluded SMS-only followers.
 
The almost-flat user growth led to its shares falling as much as 13 percent in extended trading, Tech Crunch reported, hitting another new low of around $13.75 before flattening out to 3 percent in extended trading.
 
"We saw a decline in monthly active usage in Q4, but we've already seen January monthly actives bounce back to Q3 levels. We're confident that, with disciplined execution, this growth trend will continue over time," the company said in its earning statement.
 
In the past year, the stock has fallen nearly 70 percent and investors are looking for long-term growth from Twitter.
 
In an attempt to bring tweets to more people across the globe, Twitter is planning to introduce an algorithmic timeline like Facebook. 
 
The timeline will reorder tweets based on what Twitter's algorithm thinks people most want to see.
 
The home timeline will be rolled out to people across 23 countries, including India, who visit Twitter home page on their mobile devices. The micro-blogging site has been looking for ways to elevate popular content for quite some time.
 
New CEO Jack Dorsey has made several moves, including cutting jobs and naming Google's former chief business officer, Omid Kordestani, as Twitter's executive chairman.
 
Under Dorsey, Twitter has released a news curation feature "Moments" and the company is reportedly working to extend Twitter's identifying 140-character limit to 10,000.
 
Twitter is also set for a major overhaul under Dorsey to revive the company's fortunes with some of the high-profile executives putting in their papers.
 
CEO Jack Dorsey is trying to get the company back on track, and to fix the damage to employee morale after a year of internal turmoil.
 
Several high-profile Twitter executives and managers have jumped ship in recent months. In the past week alone, Twitter Editorial Director Karen Wickre, and Shariq Rizvi, who confounded the direct response ads team at Twitter, both announced their departures.
 
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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