Nifty, Sensex may be headed lower: Weekly closing report
A fall below 8,400 would lead to a decline 
We had mentioned in last week’s closing report that Nifty, Sensex were headed higher and that Nifty has to close above 8,460 for the uptrend to continue. The 50-scrip Nifty had closed the previous week at 8,532.85. For Friday, the losses have been marginal and for the week, as a whole, the market has ended flat. The indices are moving sideways, while the market struggles to gain the momentum for a rally.
On Monday, the Nifty moved in the green for almost the entire session and dipped in the end, recording marginal gains. Last week's announcement of Rs70,000 crore infusion into public sector banks (PSBs) in the next four years continued to boost banking stocks. According to analysts, domestic markets remained positive on the back of a surge in banking and auto stocks ahead of the RBI's (Reserve Bank of India) monetary policy review on Tuesday. The markets’ rise was arrested by the higher levels of profit booking which trimmed some of the early gains due to weak Greece and Chinese stock markets, cited analysts.
On Tuesday, the RBI, in its third monetary policy review, kept the repurchase rate, or its short-term lending rate, unchanged at 7.25%. Accordingly, the reverse repo rate, or the short-term borrowing rate, was unchanged at 6.25%. The cash reserve ratio (CRR), or the liquid money banks have to compulsorily hold, stood unchanged at 4%. The decision to maintain the status-quo disappointed investors, as a general consensus had appeared that showed that the current review might be the last chance that RBI had to cut rates in this calendar year. Markets are doubtful over the RBI's ability for a future easing of the monetary policy in the hindsight that inflation might spiral up again and the US Fed's decision on its own rates is coming up in September.
On Tuesday, the 50-stock index opened marginally higher but made a quick move into the negative. It stayed in the red for almost the entire session. The Nifty broke the 8,500 support but recovered and closed marginally in the red.
For the entire session Wednesday, the 50-stock benchmark remained above the previous day’s close albeit moving in a narrow range. According to analysts, bargain hunting was observed in the market after Tuesday's fall. RBI's announcements of changing the cap on bond investment limit from being dollar-linked to rupee-denominated, segregation of the bond market and its engagements with the government over the new financial code also boosted the markets, they said. Sector wise, healthy buying was observed in healthcare, automobile, information technology (IT), fast moving consumer goods (FMCG) and capital goods sectors. However, the banking, consumer durables and metal sectors came under selling pressure.
On Thursday, the major indices in the Indian stock markets were range-bound and made marginal gains during the day’s trading. According to analysts, Indian markets opened positively tracking the SGX Nifty and Wednesday's data which showed healthy growth in services PMI (purchasing managers' index). Sentiment was also helped by upbeat economic data from China. Markets gained due to the positive response to the RBI governor's comments on the economy. Positive sentiments surrounding Cognizant’s quarterly results supported the rally across information technology stocks.
On Friday, the market failed to gain momentum for a rally, and the indices closed marginally in the red. A logjam in parliament, impending US rate hike decision and other negative global cues led to the close in the red. Sector-wise, healthy buying was observed in oil and gas, automobile and consumer durables stocks. However, banking, capital goods and healthcare sectors came under selling pressure. 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


Naming, shaming student borrowers a human rights violation: NHRC
Terming the bankers practice of "naming and shaming" of students who defaulted on repaying education loans as violation of human rights, the National Human Rights Commission (NHRC) has issued notice to the Central Bank of India chairman.
It has also issued notices to the district magistrate and superintendent of police of Nilgiris district in Tamil Nadu and the manager of Central Bank of India's Majoor Branch, Nilgiris.
In a statement, the NHRC said it has taken cognizance of a complaint alleging harassment by Central Bank of India by a education loan-taker and her family as the bank had displayed the photographs of the girl student and her father as "missing" and "defaulter".
It is alleged that the student borrower's father died due to shock after receiving threatening telephone calls from the bank despite paying off half of the loan amount in the first month after the moratorium period.
According to the NHRC statement, panel member Justice D.Murugesan has observed that enforcing the practice of "name and shame rules" in educational loans would certainly amount to serious violation of human rights.
"Publishing photographs of parents and students (defaulters) have the potential of exposing the students to irreparable loss, injury and prejudice," the statement said.
"Apparently, the bank appears to have believed that shaming the defaulters would pressurize the families to repay outstanding educational loans. Such display of photographs of defaulters of educations loan (who normally come from poor families and particularly rural areas) would certainly amount to loss of their dignity apart from violation of their human rights," the apex rights panel said.




1 year ago

The naming and shaming is ok provided the the Public Sector Bank does for big defaulter like Vijay Mallya who owes more than Rs 14,000 crores or that the family firm of a BJD LS MP Bijoy Panda when The Industrial Development Bank of India (IDBI) has cleared a financial restructuring package for Indian Charge Chrome Ltd (ICCL) under which it has asked the promoters, the Orissa-based Pandas, to merge the company with its parent, Indian Metals and Ferro Alloys Ltd (IMFA).

Under the financial restructuring package cleared by IDBI, the total settlement, including principal and accrued interest, has been pegged at over Rs 1,000 crore.

Let PSB take same route, this is what NHRC should be able to make PSB do so that we will know what is true face of NaMo

Smart Tips for Car Loan & Insurance
New and used cars have different sets of issues for insurance and financing. Buyers and...
Premium Content
Monthly Digital Access


Already A Subscriber?
Yearly Digital+Print Access


Moneylife Magazine Subscriber or MSSN member?

Yearly Subscriber Login

Enter the mail id that you want to use & click on Go. We will send you a link to your email for verficiation

We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)