Nifty, Sensex making an effort to form a base: Monday Closing Report

Nifty made a fresh low today. For a rise, it has to stop making fresh lows and close above any previous day’s high

The market settled marginally lower on dismal global cues which threatened to derail the growth momentum. The Nifty made a fresh low today. For a rise, it has to stop making fresh lows and close above any previous day’s high. The advance-decline ratio on the National Stock Exchange was 362:1159 and volume was 84.64 crore shares.


The market opened flat tracking its Asian peers which were lower in morning trade following new initiatives by the Chinese government to rein in property prices. The rupee, which was trading near its two-month lows in early trade, also weighed on the sentiments.


The Nifty opened 15 points lower at 5,705 and the Sensex resumed trade at 18,921, up two points over its previous close. The benchmarks hit their intraday highs in initial trade itself with the Nifty inching up to 5,712 and the Sensex going up to 18,931.


Selling pressure in realty, power, fast moving consumer goods and metal sectors soon pushed the market in the negative. The indices touched their lows at around 10.00am. The Nifty fell to 5,664 and the Sensex was down to 18,760 at their respective lows.


However, select buying in banking and IT stocks saw the market make a struggled northward journey, though the bias remained negative. A negative opening of the European markets kept a tab on the local market in post-noon trade.


The market closed in the red as the recovery from the lows of the day lacked strength to pull the benchmarks in the green. The Nifty closed 21 points (0.37%) lower at 5,699 and the Sensex finished the session at 18,878, down 41 points (0.21%) from its previous close.


Among the broader indices, the BSE Mid-cap index declined 1.375 and the BSE Small-cap index dropped 1.89%.


With the exception of the BSE Bankex (up 0.27%), all other sectoral gauges closed in the negative. The top losers were BSE Metal (down 2.54%); BSE Realty (down 2.25%); BSE Consumer Durables (down 2.15%); BSE Capital Goods (down 1.85%) and BSE PSU (down 1.14%).


Eleven of the 30 stocks on the Sensex closed in the positive. The main gainers were Dr Reddy’s Laboratories (up 1.52%); Bharti Airtel (up 1.46%); HDFC Bank (up 0.94%); TCS (up 0.71%) and ITC (up 0.69%). The main losers were Hindalco Industries (down 4.55%); Jindal Steel & Power (down 4.26%); Sterlite Industries (down 2.74%); Hindustan Unilever (down 2.63%) and Larsen & Toubro (down 2.52%).


The top two A Group gainers on the BSE were—Core Education Technologies (up 8.83%) and GMR Infrastructure (up 4.74%).

The top two A Group losers on the BSE were—NHPC (down 18.84%) and Essar Oil (down 11.71%).


The top two B Group gainers on the BSE were—Raj Rayon Industries (up 19.05%) and Saamya Biotech India (up 18.91%).

The top two B Group losers on the BSE were—Readymade Steel India (down 19.99%) and Royal India Corporation (down 19.97%).


Of the 50 stocks on the Nifty, 16 ended in the green. The key gainers were Bharti Airtel (up 1.88%); TCS (up 1.20%); Dr Reddy’s (up 1.16%); ITC (up 0.94%) and Axis Bank (up 0.87%). The leading losers were Jaiprakash Associates (down 5.95%); Hindalco Ind (down 5%); JSPL (down 4.71%); ACC (down 3.66%) and Reliance Infrastructure (down 3.40%).


Markets in Asia, barring the Nikkei 225, closed lower as the Chinese government tightened norms governing the housing sector in a bid to keep a tab on property prices. Japanese shares rose on speculations that the country’s central bank might enhance its bond buying initiatives.


The Shanghai Composite tumbled 3.65%; the Hang Seng dropped 0.50%; the Jakarta Composite declined 1.04%; the KLSE Composite shed 0.09%; the Straits Times tanked 0.90%; the Seoul Composite fell 0.66% and the Taiwan Weighted settled 1.22% lower. Bucking the trend, the Nikkei 225 gained 0.40%.


At the time of writing, the CAC 40 of France was down 0.04%; DAX of Germany fell 0.48% and UK’s FTSE 100 was trading 0.40% lower. At the same time, the US stock futures were negative, indicating a soft opening for the US markets later in the day.


Back home, foreign institutional investors were net buyers of shares totalling Rs696.89 crore on Friday whereas domestic institutional investors were net sellers of equities amounting to Rs45.84 crore.


Videocon Mobile Services has signed an in-principle agreement with European telecom gear maker Nokia Siemens Network to roll out its 4G services in the country. Videocon has won spectrum in six telecom circles—Bihar, Gujarat, Haryana, Madhya Pradesh, Uttar Pradesh (East) and Uttar Pradesh (West) for Rs2,221.44 crore in the November 2012 auction.  Videocon Industries gained 0.26% to close at Rs196.10 on the NSE.


Essar Oil has received Phase III environmental clearance from the Union ministry of environment and forests for fully developing coal bed methane (CBM) gas field at Raniganj in West Bengal. It has been allowed to increase drilling to 650 wells. The company will raise gas production to 3 million metric standard cubic meters per day (mmscmd) from 60,000 mmscmd. The stock tumbled 10.24% to close at Rs74.10 on the NSE.


Tata Global Beverages today said it has tied up with cardamom growers from South India to source and market the product across the country. It will also associate with turmeric growers from the north-eastern region going forward. The stock declined 1.21% to settle at Rs126.40 on the NSE.


Excise, service tax defaulters may face arrest

The move comes against the backdrop of lower than budgeted collections of excise and customs duties

Failure to pay excise duty and service tax could lead to arrest of defaulters, as per the provisions proposed in the Finance Bill 2013 by Finance Minister P Chidambaram in the Lok Sabha last week.


As per the provisions, offences relating to excise and customs duty evasion of over Rs50 lakh would be made cognisable and non-bailable.


Similarly in case of service tax, the failure to deposit the tax amount exceeding Rs50 lakh with the government would result in imprisonment up to seven years.


The Finance Bill has proposed to introduce Section 91 to provide for power to arrest a person for specified offences, particularly non-payment of collected service tax, by an officer not below the rank of Superintendent of Central Excise.


It has also proposed to make at least four offences non-bailable under Section 135 of the Customs Act.


This would include import or export of any goods which have not been declared in accordance with the provisions of this Act and the market price of which exceeds Rs1 crore.


Also, if a person fraudulently attempts to avail of drawback or any exemption from duty provided under Customs Act, if the amount of drawback or exemption from duty exceeds Rs50 lakh, it would be a non-bailable offence.


The move comes against the backdrop of lower than budgeted collections of excise and customs duties. As per the Budget papers, customs collection during 2012-13 is estimated at Rs1.65 lakh crore, as against the target of Rs1.87 lakh crore.


In the case of excise duty the realisation is likely to be Rs1.72 lakh crore, compared to the target of Rs1.94 lakh crore.


However, on the positive side, the service tax collection is estimated to be Rs1.33 lakh crore, as against the budget estimate of Rs1.24 lakh crore.




3 years ago

I know of someone who has just collected rs.25 lacs as service tax and not going to report it !
is there a whistle blower policy ?


4 years ago

Making it Non-Bailable Offens with Powers to Superintend looks very Harsh.This empowers the Superintends with immuable Powers to threaten Companies Managements , their Pound of Flesh.Usually Superintends are in Hostile to Companies , as they deal with Day to day transactions.Moreover Supdt.s likely to be benefitted personally from companies.Their Objections/ Damands are mostly struck off by Asst.Commissioner / Commisioner / Commissioner ( Appeals ) / Courts, accepting Companies Arguments / Thinking. RS. Hundreds of Crores are in Litigation , for all demands issued by Superintends . In such Scenario, Superintentends are Not at all to be Empowered but Only Commisioners / Asst.Commissioners .


4 years ago

One more nail in the entrepreneur's coffin - how many more Damocles' swords will hang over their heads?

Sad, but the simplest thing of introducing GST has been postponed - but all the taxes and duties which are expected to lapse once GST comes in - we are working hard on them to make them tougher !

Crude bomb hurled outside President Pranab Mukherjee’s hotel in Dhaka

The incident came on the second day of the 48-hour strike called by fundamentalist Jamaat-e-Islami party against the sentencing of three of its top leaders in 1971 war crimes cases

A low-intensity crude bomb was hurled today outside the Sonargaon Pan-Pacific hotel in Dhaka where Indian president Pranab Mukherjee is staying.


No one was injured in the blast which took place around 2.00 pm, said Apoorva Hassan, the officer in-charge of Tejgaon police station.


Two persons came on a motorcycle and hurled the bomb wrapped in a cap near the SAARC fountain, about 50 yards away from the hotel at a street intersection, he said.


The two managed to escape and no one was arrested in this connection, he added.


Security around the hotel has been further strengthened after the attack.


It was not immediately whether the president, on a three-day state visit to Bangladesh, was inside the hotel or not.


The incident came on the second day of the 48-hour strike called by fundamentalist Jamaat-e-Islami party against the sentencing of three of its top leaders in 1971 war crimes cases.


None of the delegation members heard any explosion nor knew of any such incident, President's Press Secretary says.


 The president this morning addressed 10,000 students in an open air pandal in the Dhaka University to great acclamation from the students.


He was awarded an honorary doctorate by the president of Bangladesh who is also chancellor of the University at the function.


Mukherjee is looking forward to meeting other dignitaries this afternoon and the president of Bangladesh once again this evening.


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