Stocks
Nifty, Sensex looking weak – Thursday closing report
If the Nifty continues to decline it may head for 7,700.
 
We had mentioned in Wednesday’s closing report that Nifty, Sensex were in no man’s land and that if Nifty closes below 7,880, a downtrend may start. Thursday’s Nifty closing value has been 7,864.15 which is marginally lower than 7,880. Nifty has now become “sell on rallies” for the short term. The trends in the major indices in the course of Thursday’s trading are given in the table below:
 
 
The government on Thursday said the current regulatory framework on Participatory Notes (P-Notes) mode of investment into India's capital markets is strict and robust. "As of now, the kind of reporting requirement and the kind of vigour with which we follow through on the identity of P-Notes holders is actually fairly good and strict in terms of really understanding who is it and whether they are legitimate institutions that are transacting through P-Notes," Minister of State for Finance Jayant Sinha said. "Overall, the framework is quite robust," he added, speaking at a global seminar here on sharing of tax information. He said the Securities and Exchange Board of India (SEBI) has strengthened the know-your-customer (KYC) norms relating to P-Notes. In July, the Supreme Court appointed Special Investigation Team (SIT) on black money had asked capital markets regulator SEBI to review its regulations on P-Notes and identify their end-users. P-Notes, mostly used by overseas individual investors, hedge funds and foreign institutions, allow investors to invest in Indian markets through registered foreign institutional investors (FIIs).
 
Going overdrive in the defence manufacturing space, Anil Ambani-led Reliance Group has applied for as many as 16 more licences in areas ranging from missiles to radar, barely two weeks after it got conditional nod for 12 requests to make aircraft, choppers and more. "We have applied for these industrial licenses to manufacture defence equipment and hardware such as heavy weapons, ammunition, explosives, missiles, small arms, electronic warfare, armoured and amphibious vehicles, radars and unmanned systems," an informed source said. "The new facilities to come up in Gujarat and Maharashtra in a phased manner," the source added, requesting anonymity. "Once these 28 licenses are in place, we will create tens-of-thousands of thousands of highly skilled jobs." Late last month, the government had approved conditionally 12 licences for the Reliance Group in this this area. These were part of approvals for 32 similar applications from other stakeholders, as per the list put up by the Department of Industrial Policy and Promotion. The projects are to be executed by companies floated by Reliance Defence that is a wholly-owned subsidiary of Reliance Infrastructure. These will cover the entire spectrum of land, Naval and air systems, sources said. Reliance Defence also has strategic plans to set up a maintenance, repair, overhaul and upgrades of various platforms. The group is also in the process of acquiring Pipavav Defence and hopes to conclude the deal by the end of this year. Reliance Defence has 11 subsidiaries in niche segments of the sector and chairman Anil Ambani had told shareholders recently that defence manufacturing and smart cities will be the future drivers of growth for the company. All this is fine, except that the group has miserably failed to deliver value for shareholders; its execution falls way short of its declarations.
 
Power Minister Piyush Goyal on Thursday said that the central government was committed to provide electricity to all villages by 2018. "Today, the whole country has required coal and power," he told the Lok Sabha. The minister said 18,452 villages are to be provided electricity under the Deen Dayal Upadhyay Gramin Jyoti Yojana (DDUGJY). For this, new transmission lines will be set up, he added. "This is being done as promised by the central government that within 1,000 days of its taking over, all villages, which do not have electricity, will be provided the same," the minister told the house. He also said that his ministry has come up with a mobile app, which could give the latest information on the on-going work of village electrification. This policy of the government could give a boost to the companies in the power sector.
 
Leading car makers Hyundai, Ford and Renault-Nissan were forced to suspend operations on Wednesday, as torrential rains flooded their production plants in the Tamil Nadu capital. "Production work has been suspended for the day, as rain water gushed into the plant and our employees could not turn up due to transport disruption," a Hyundai official said. The Korean auto major was among the first to set up its Indian plant at Sriperumbudur in this coastal city, which is called 'Detroit of India', after Ford, Renault-Nissan and other car makers came calling. Hyundai will review the situation on Thursday and decide when to resume production, though the Met office has predicted more rains this week due to the formation of low pressure over the Bay of Bengal. Similarly, Ford India's subsidiary plant at Chengalpattu, 45 km from the city centre, was shut down after rain water flooded the facility and its workers could not to reach the factory, as commutation became difficult on flood-ravaged roads. "We have halted production at our plant due to heavy rains flooding the area and approach roads remaining cut off owing to water logging," a company spokesperson said. French-Japanese auto alliance Renault-Nissan also suspended operations for the day at its plant in Oragadam for the safety of its employees, as the whole area was flooded with rain water. "Resumption will depend on normalcy returning as employees' safety is paramount. We are monitoring the situation," Renault India chief executive Sumit Sawhney said in a statement. The losses to crops and property due to floods in Tamil Nadu and the production losses due to unscheduled production holidays could affect the economy adversely in the next few months.
 
Software major Wipro on Wednesday announced acquisition of leading German IT consulting and software services firm Cellent AG for Euro 73.5 million (Rs.518 crore). "We have signed an agreement with Landesban Baden-Wuerttemberg to acquire Cellent AG for Euro 73.5-million," the IT bellwether said in a statement. Post-acquisition, the 14-year-old Fellbach-based Cellent's 800 consultants will become part of Wipro. Cellent has been offering IT solutions and services to its customers in the Dach region of Germany, Austria and Switzerland since 2001. "As the Dach market is a strategic growth and investment region for us, acquiring Cellent will give us scale and prime customer relationships in the manufacturing and automotive domains, which are key sectors in the region," Wipro chief executive for manufacturing N.S. Bala said on the occasion. The outsourcing major hopes to complete the acquisition process by March 31, 2016 after getting regulatory approvals. Wipro shares closed at Rs572.15, down 0.97% on Thursday on the BSE.
 
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 in the table below:
 

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Modi announces Rs.1,000 crore for Tamil Nadu

Modi said he had directed the release of Rs1,000 crore for flood relief, in addition to the Rs940 crore announced earlier

 

Prime Minister Narendra Modi on Thursday announced Rs.1,000 crore to Tamil Nadu for flood relief work.
 
Speaking after an aerial survey of the flood-hit city and other places, he said he had seen the damage caused by the heavy rains, and the central government stood by the people of Tamil Nadu. 
 
Modi said he had directed the release of Rs.1,000 crore for flood relief, in addition to the Rs.940 crore announced earlier.
 
Tamil Nadu Chief Minister J. Jayalalithaa had earlier submitted a memorandum requesting around Rs.8,481 crore towards flood relief and an immediate release of Rs.2,000 crore.
 
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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MP CM spent Rs1.39 crore on foreign trip, took child specialist as personal physician

Interestingly, the documents also reveal that the chief minister's office had requested the principal secretaries of the commerce as well as health and family welfare departments that R.K. Ray, a child specialist at Jai Prakash Chikitsalaya here, be given permission to travel as the chief minister's personal physician

 

A nine-member delegation led by Madhya Pradesh Chief Minister Shivraj Singh Chouhan spent Rs.1.39 crore (nearly $210,000) on a nine-day trip to Japan and South Korea between September 29 and October 7, which also included giving gifts to investors and political leaders, the reply to an RTI (Right to Information) query has revealed.
 
Interestingly, the documents also reveal that the chief minister's office had requested the principal secretaries of the commerce as well as health and family welfare departments that R.K. Ray, a child specialist at Jai Prakash Chikitsalaya here, be given permission to travel as the chief minister's personal physician.
 
The reply, received from the Madhya Pradesh Trade and Investment Facilitation Corporation Limited (TRIFAC) by activist Ajay Dubey in November, stated that gift items of Mrignayani MP Emporium and MP Laghu Udyog Nigam Limited, both owned by the state government, were carried for distribution to political leaders/VIPs/investors/ delegates during an interactive session in Tokyo chaired by the chief minister. These gifts had no commercial value, according to a document accessed through the RTI reply.
 
The RTI reply revealed that Rs.18.50 lakh was spent on airfare for the trip, Rs.35 lakh on hotel charges (Rs.23 lakh in Japan and Rs,12 lakh in South Korea), Rs.20 lakh on local transportation (Rs.12 lakh in Japan and Rs.8 lakh in South Korea) and Rs.5.50 lakh on daily allowance (Rs.3.50 lakh in Japan and Rs.2 lakh in South Korea).
 
One of the documents showed that Rs.10,13,740 was approved for the interpreter.
 
The venues of meetings and sessions with investors, industry and companies cost Rs.40 lakh - including the cost of the interpreter - with Rs.25 lakh spent in Japan and Rs. 15 lakh in South Korea. This apart, Rs.20 lakh was spent on promotional material and goods (Rs.12.50 lakh in Japan and Rs.7.50 lakh in South Korea).
 
During the trip, Rs.76 lakh was spent in Japan and Rs.44.50 lakh in South Korea (not counting the airfare).
 
"At a time when the farmers are committing suicide in the state due to drought, the CM is making foreign trips. Moreover, when it comes to investment, Madhya Pradesh doesn't come in the priority list of Japan and South Korea among the other states in India," Dubey said.
 
Among the others who travelled with the chief minister were Yashodhara Raje Scindia, the minister for commerce, industry and employment; Mohammed Suleman, principal secretary in Scindia's ministry; S.K. Mishra, the minister's principal secretary; Hari Rajan Rao, the minister's secretary; D.P. Ahuja, the TRIFAC managing director; Kumar Purushottam, managing director of the Madhya Pradesh Audyogik Kendra Vikas Nigam Limited; a state representative of the Confederation of Indian Industry (CII) and a representative of Ernst & Young, Bhopal.
 
This is the second time this year that Chouhan's foreign trip has raised eyebrows.
 
In August, the reply to an RTI plea by Dubey revealed that an eight-member delegation led by Chouhan spent close to Rs.3 crore ($465,000/$58,000 per head) on a five-day US trip in February, which included giving expensive gifts to investors,
 
Madhya Pradesh has been mired in the Vyapam scam for years, but the irregularities eventually came to light when 20 people were arrested in 2013 for impersonating candidates appearing for the 2009 medical entrance examination.
 
Forty-eight people associated with the Vyapam scam have died - mostly under mysterious circumstances. Following the chain of deaths, the Supreme Court in July directed the CBI to investigate not just the Vyapam scam but also the deaths related to it.
 
The most recent death was of an Indian Forest Service officer, Vijay Bahadur Singh, whose body was found close to a railway track near Odisha's Belpahad station on October 15. He was travelling by the Puri-Jodhpur Express. The CBI has started probing this death as well.
 
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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COMMENTS

Krishnan

1 year ago

Why unauthenticated information is used in the article.Very funny.

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