Nifty, Sensex likely to head higher – Thursday closing report

Nifty has to stay above 7,900 for the upmove to continue


We had mentioned in Wednesday’s closing report that the current upmove on the NSE's CNX Nifty may continue if it sustains above the level of 7,900.  On Thursday again, the market managed to make a new opening high, after which it continued to move sideways. Volatility was higher towards the end of the session on account of the expiry of August futures and options.


The S&P BSE Sensex opened at 26,620 while Nifty opened at 7,942. Sensex moved in the range of 26,574 and 26,674 while Nifty moved between 7,939 and 7,968.  Recording gains for the sixth consecutive trading session, Sensex closed at 26,638 (up 78 points or 0.29%), while Nifty closed at 7,954 (up 18 points or 0.23%). NSE recorded a higher volume of 96.93 crore shares. India VIX rose 0.03% to close at 13.0675.
The stock markets will remain close on Friday for Ganesh Chaturthi.
The Indian government will release Q1 June 2014 GDP data on Friday. Global credit rating agency Moody's Investors Service said that India's sovereign ratings are constrained by persistently high inflation. Without a significant increase in food output, the risk from continued inflation could limit India's growth prospects, Moody's said.
The government has notified a new law empowering market regulator SEBI to pass orders for attachment of properties, arrest of defaulters and to access call data records.
The union government has taken a decision to allow the Ministry of Road Transport and Highways to decide on mode of delivery and amendments in the model concession agreement in respect of national highways projects for expediting of implementation of road infrastructure projects in the country.
Department of Industrial Policy and Promotion (DIPP) on Wednesday issued a notification allowing 100% foreign direction investment (FDI) through the automatic route in railway infrastructure. Among other players in the sector, Bhel which has an exposure to the sector may be benefitted. Bhel (5.04%) was among the top three gainers in ‘A’ group on the BSE and was the top gainer in Sensex 30 pack.
Bhushan Steel (4.97%) continued to hit a new 52-week low and was among the top two losers in ‘A’ group on the BSE. The stock, which was in the news in relation to the Syndicate Bank bribery case was further pulled up by the Reserve Bank of India (RBI), which has put the Rs40,000 crore exposure of banks in the company under the corrective action plan (CAP) for stressed loans. There are three options — including bringing new investor, restructuring the account and recovery of loans — under CAP for stressed assets.
There are reports that the Economic Offence Wing (EOW) of Mumbai police is probing the role of public sector banks relating to the fixed deposit (FD) scam. Indian Bank (5.01%), Andhra Bank (3.93%), IOB (3.12%) and Dena Bank (2.99%) were among the top ten losers in the ‘A’ group on the BSE. SBI (1.70%) was among the top three losers in Sensex 30 stock.
US indices closed Wednesday flat with positive bias. Asian indices showed mixed performance. Jakarta Composite (0.37%) was the top gainer while Hang Seng (0.71%) was the top loser.
China's industrial profits rose 13.5% in July after climbing 17.9% in June, its fastest pace since September, according to data released by the National Bureau of Statistics today, 28 August 2014.
European indices were trading in the red. US Futures too were trading lower.


CBDT panel to decide retrospective tax cases

The CBDT's high-level committee will scrutinise all cases arising out of the retrospective tax amendment within of 60 days of receiving them from the Assessing Officer


The Central Board of Direct Taxes (CBDT) on Thursday set up a high-level committee to scrutinise all Income Tax (I-T) cases arising out of the retrospective tax amendment.

The four-member committee will be headed by the Joint Secretary of the Foreign Tax and Tax Research-I unit of the CBDT. It will decide on such cases within 60 days of receiving them from the Assessing Officer.


It will be incumbent upon the AO to approach the Committee when faced with an I-T case that is for the period before April 2012.


The other members on the panel include Joint Secretary (Tax Planning and Legislation-I), the Commissioner of Income Tax Appeals and the Director (Foreign Tax and Tax Research-I), who will also be the Secretary of the committee.


Finance Minister Arun Jaitley had announced this new mechanism in his Budget 2014-15 speech on 10th July.


According to the terms of reference for the new committee, it would, on receipt of the reference from the Assessing Officer examine the proposed action of the Assessing Officer and after providing an opportunity to the assessee, take a decision on the proposed action.


In a notification, CBDT said: “The committee shall convey its decision in writing to the Assessing Officer with a copy to the Principal Commissioner or the Commissioner concerned and the assessee.”


“The committee shall endeavour to decide the reference within 60 days of its receipt by the Secretary of the committee. However, the committee shall have due regard to any limitation period involved in the proposed action, ” CBDT added.


An AO “shall seek prior approval” of the committee when faced with a situation that any income is deemed to accrue or arise in India before April 2012 through transfer of a capital asset situated in India following the amendments introduced with retrospective effect, the notification from CBDT said.


CBI conducts searches at over 20 places in Saradha scam

CBI is raiding the premises of former Assam minister and legislator Hemant B Sharma


The Central Bureau of Investigation (CBI) is searching seven locations in Kolkata, 12 in Guwahati, two in Dhubri, Assam and one in Mumbai in relation to the multi-crore Saradha scam, an official said.

CBI is raiding the premises of former Assam minister and legislator Hemant B Sharma, Anjan Dutta, MLA from Assam, former IPS officer Shankar Baruah and singer Sadananda Gogoi.

In Kolkata, the agency is searching Bapi Karim, a former personal assistant to Bengal minister Asif Khan, Sandhir Agarwal and Sajjan Agarwal and former IPS officer Deben Biswas. The agency has already arrested Sandhir Agarwal.


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