Stocks
Nifty, Sensex in no man’s land – Wednesday closing report
While the bias has turned upward, Nifty may struggle to rally
 
We mentioned on Monday that the correction was set to deepen. On Wednesday the market witnessed a steady decline until 1.30pm, after which it surged with the NSE's CNX Nifty covering up the entire loss of Monday. The bourses may witness erratic movement on Thursday with the expiry of July futures and options (F&O). 
 
The S&P BSE Sensex opened at 26,005 while Nifty opened at 7,746, the lowest opening of both the benchmark since 23 July 2014. Both Sensex and Nifty hit low of 25,850 and 7,708 from where it surged to hit the day’s high at 26,113 and 7,799, respectively.
 
Sensex closed at 26,087 (up 96 points or 0.37%) while Nifty closed at 7,791 (up 43 points or 0.55%). The NSE recorded a higher volume of 84.10 crore shares. India VIX fell 3.04% to close at 13.8875.
 
Except for Infra (1.40%) and IT (0.22%) all the other indices on the NSE closed in the green. The top five gainers were Finance (1.65%), Media (1.64%), Bank Nifty (1.58%), Pharma (1.47%) and Consumption (1.42%).
 
Of the 50 stocks on the Nifty, 35 ended in the green. The top five gainers were Lupin (5.48%), Bharti Airtel (5.47%), PNB (4.38%), DLF (3.27%) and Kotak Mahindra Bank (3.14%). The top five losers were LT (7.01%), Jindal Steel (1.83%), Tata Power (1.63%), Tech Mahindra (1.55%) and United Spirits (1.44%).
 
Of the 1,604 companies on the NSE, 737 companies closed in the green, 802 companies closed in the red while 65 companies closed flat.
 
According to a media report, the Cabinet Committee on Economic Affairs (CCEA) may take up royalty revision of 23 major minerals later in the day.
 
Bharti Airtel (5.26%) was the top gainer in the Sensex 30 pack. The company has posted a net profit of Rs2,160.40 crore for the quarter ended June 2014 as compared to Rs958.80 crore for the quarter ended June 2013. Sales has increased from Rs12,224.40 crore for the quarter ended June 2013 to Rs13,627.80 crore for the relevant period.
 
CESC (5.76%) was the top gainer in ‘A’ group on the BSE. The company has posted a net profit of Rs151 crore for the quarter ended June 2014 as compared to Rs131 crore for the quarter ended June 2013. Sales has increased from Rs1,434 crore to Rs1,863 crore for the relevant period.
 
Larsen & Toubro (7.32%) was the top loser Sensex 30 stock and in ‘A’ group on the BSE. After the market hours on Monday, L&T came out with its June 2014 quarterly results. It has posted a net profit of Rs893.55 crore for the quarter ended June 2014 as compared to Rs664.31 crore for the quarter ended June 2013. Sales has increased from Rs9,823.93 crore to Rs10,337.62 crore for the relevant period.
 
US indices closed Tuesday in the negative. Economic reports showed improving US consumer sentiment while the housing market remains in a slowdown. The Conference Board's consumer confidence index rose to 90.9, the highest reading since October 2007. Residential real-estate prices advanced 9.3% in the 12 months ended May, the slowest pace in more than a year, according to the S&P/Case-Shiller index of property values in 20 cities.
 
President Barack Obama announced new sanctions against Russia and warned its actions in Ukraine are "setting back decades of progress".
 
Market now awaits the announcement of Federal Reserve's Federal Open Market Committee (FOMC) on further reduction in its quantitative easing program after its two-day policy meeting which concludes later today.
 
Asian indices closed mostly in the green. Among the Asian indices trading on Wednesday, Taiwan Weighted (0.59%) was the top gainer while NZSE 50 (0.14%) was the top loser. European indices were showing a mixed trend while US Futures were trading in the green.
 

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L&T Business Cycles Fund will place sectoral bets based on economic activity
The new equity scheme from L&T Mutual Fund aims to invest in companies that are strategically placed to make the most of the economy’s business cycles
 
L&T Mutual Fund has launched an open-ended equity scheme on Wednesday— L&T Business Cycles Fund. This equity diversified scheme, which will keep a minimum allocation of 65% to equity, would have no static market-cap bias or sector bias and will invest across companies and industries depending on the economy’s business cycle. The offer document of the scheme states that the investment objective will “focus on riding business cycles through dynamic allocation between various sectors and stocks at different stages of business cycles in the economy.”
 
The scheme would aim to deploy the business cycles approach to investing by identifying economic trends and investing in the sectors and stocks that are likely to outperform at any given stage of business cycle in the economy. For example, during period of expansion, L&T Business Cycles Fund would aim to predominantly invest in stocks of companies in the cyclical sectors as they tend to outperform the broader market during expansionary phase. Similarly, during period of contraction the Scheme would look to invest in defensive sectors stocks or sectors that are less sensitive to changes in overall economic activity.
 
For example, during the expansionary phase in the domestic economy from FY04 to FY08, most of the cyclical stocks such as those in capital goods and consumer durables sectors outperformed the stocks in the non-cyclical sectors. However, when the economic growth slowed down from FY09 to FY14, stocks in defensive sectors such as consumer staples and healthcare outperformed the cyclical stocks.
 
The offer document further states that “The fund managers could use various indicators such as corporate profit growth trends, inventory levels, credit growth, capacity utilisation levels and other relevant factors to determine the stage of the economic cycle. Based on the views formed on the stage of the economic cycle, the fund managers would look to own stocks that they expect to outperform over the next few years.”
 
There would be two fund managers of the scheme. Venugopal Manghat, who has over 20 years experience, will be the primary fund manager. Abhijeet Dakshikar, having 10 years experience, will manage the portfolio for foreign securities.

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Delhi Metro asked to make public, reasons for frequent ‘technical snags’
The Central Information Commissioner’s order opens up the case for transparency in the operations of public transport in India
 
The Delhi Metro has been suffering 'technical snags' regularly. The recent one was absolutely scary because the doors of a coach remained open for a few minutes in the running train. In Mumbai, a ‘technical snag’ halted Mumbai Metro on the inaugural day recently. All this raises the concern and safety of lakhs of commuters, which makes the issue to be of larger public interest.
 
Gurgaon resident Aseem Takyar, has been filing Right to Information (RTI) applications since 2013 to the Delhi Metro, and demanding the list of the number of times that the various metro trains of Delhi halted because of technical snags, or otherwise. 
 
He was compelled to file his second appeal before the Central Information Commission (CIC), when he got inadequate reply from the Public Information Officer (PIO) of Delhi Metro despite an order from the First Appellate Authority (FAA) for providing the information. It is a fact that Takyar refused to pay Rs550, the amount for photostat copies for the required information. The CIC also noted that the fee of Rs550 for providinng photocopies of 275 pages was reasonable. 
 
But the CIC has also ruled that the Delhi Metro is legally bound to provide, free of cost, information on the number of trains that halted, reasons for the same and duration of the halts as asked by Takyar.
 
This is what Chief Information Commissioner of Delhi, MA Khan Yusuf has stated in his order on 22nd July, “…appellant has been asking a complete list of incidences when trains services are halted due to technical snag or due to other reasons on all routes/ lines within last one year, along with duration of halt and service. The Commission feels that respondents are under legal obligation to provide the complete list of the incidences, as asked for, free of cost to the appellant.”
 
This order would be extremely important to the 25 lakh-odd Delhites who travel by the Metro each day. In fact, this order will have a cascading effect, as it would apply to all such public transport systems like Mumbai suburban local trains, other local trains that ply on various routes as well as water ferries and air flights, all over the country. 
 
Manoj Pai, a member of the National Campaign for People's Right to Information (NCPRI), says, “Citizens might like to download this decision and explore further, as the same decision would also apply to unscheduled halts of local trains / rakes, inter-city trains besides bus and ferry services as well, which all fall under the public domain. Activists might like to take a step further and demand the cases where air lines cancelled, delayed, and  diverted flights, as well. 
 
The recent budget has allocated funds to develop metros in major towns and cities. This means there would be more citizens directly affected with any `failures’ of this techno savvy public transport system. We also witness the inconveniences faced by Mumbai citizens who patronise locals and are thrown off gear during rains and power short circuits. Flying too is sometimes irritating when flights are suddenly cancelled. 
 
Every affected citizen must take advantage of this CIC order (produced below) and make the authorities accountable by demanding information.
 
 
(Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.) 

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