Nifty, Sensex may come under pressure – Monday closing report

If Nifty closes below 8,750, a down move may start


We had mentioned in last week’s closing report that NSE’s CNX Nifty may continue to head higher. The 50-share benchmark opened Monday with a gap up and moved further higher to hit the day’s high. After a range bound session up to 11am, the index moved lower. Nifty lost its strength further during the last few minutes of the trading session, when it made a quick plunge into negative. However, after few minutes of trading in the red, Nifty entered the green zone and closed marginally higher.
The S&P BSE Sensex opened at 29,171 while Nifty opened at 8,831. Sensex moved to the low of 29,083 after hitting a high at 29,325 while Nifty moved to the low of 8,793 from the high of 8,870. Sensex closed at 29,136 (up 41 points or 0.14%) while Nifty closed at 8,809 (up 4 points or 0.04%). NSE recorded a volume of 105.89 crore shares. India VIX rose 3.59% to close at 20.8250. 
The stock market will remain closed on Tuesday for Mahashivratri.
Petrol price was hiked by Rs0.82 a litre and diesel by Rs0.61 in Delhi with corresponding increase in other states from midnight of Sunday. Such a price hike is the first increase since August 2014.
Exports during January 2015 were 11.19% lower in dollar terms than the level of January 2014, while imports were 11.39% lower in dollar terms. The trade deficit for April-January 2014-15 was estimated at $118,373.95 million, which was higher than the deficit of $116,532.22 million during April-January 2013-14.
The annual rate of inflation based on monthly wholesale price index (WPI) stood at negative 0.39% in January 2015, compared with a reading of 0.11% for December 2014. Meanwhile, annual rate of inflation based on WPI was revised downward to negative 0.17% for November 2014, from a figure of zero reported earlier.
Coming back to Indian stock markets, Suzlon Energy (19.84%) was the top gainer in ‘A’ group on the BSE. The board of directors at its meeting has approved issuance of up to 100 crore equity shares on preferential basis to Dilip Shanghvi family & Associates and has also approved divestment in SE Forge Limited, a wholly owned subsidiary of the company.
CESC (12.15%) was the top loser in ‘A’ group on the BSE. It was in the news as SN Menon has resigned as a director with effect from 16 January 2015.
ITC (3.04%) was the top gainer in Sensex 30 pack. It informed that it has entered into asset purchase agreements with Johnson & Johnson Ltd (India) and Johnson & Johnson Pte Ltd (Singapore) for purchase of ‘Savlon’ and ‘Shower To Shower’ trademarks and other intellectual property, respectively, primarily for use in India. These agreements are subject to customary closing conditions and regulatory permissions as may be necessary. 
Sun Pharma (2.65%) was the top loser in Sensex 30 stock. The company fell as it posted a weak December 2014 quarter result.
US indices closed Friday in the green.
The University of Michigan said its preliminary consumer sentiment index for February tumbled to 93.6 from the final January reading of 98.1.
Except for Jakarta Composite (0.91%), SET Composite index of Thailand (0.49%) and NZSE 50 (0.49%) all the other Asian indices closed in the green. Shanghai Composite (0.58%) was the top gainer.
China attracted $13.92 billion of foreign direct investment in January, up 29.4% from a year earlier, the Ministry of Commerce said today. The figure was above December's $13.32 billion, which was 10.3% higher than a year earlier. Chinese investments overseas reached $10.17 billion in the first month of the year, up 40.6% from a year ago, according to the ministry.
European indices were trading in the red. US Futures too were trading marginally lower.


Pulse Beat

Is the Globe Warming?

“When future generations look back on the global-warming scare of the past 30 years, nothing will shock them more than the extent to which the official temperature records—on which the entire panic ultimately rested—were systematically ‘adjusted’ to show the Earth as having warmed much more than the actual data justified,” wrote Christopher Booker in his blog quoted in The Telegraph UK, on 7 February 2015. “Of much more serious significance, however, is the way this wholesale manipulation of the official temperature record... has become the real elephant in the room of the greatest and most costly scare the world has known. This really does begin to look like one of the greatest scientific scandals of all time.” 
Statistician Steve McIntyre exposed this fraud in 2007 when he found a paper published in 1987 by James Hansen who, for many years, ran GISS (Goddard Institute for Space Studies). “Hansen’s original graph showed temperatures in the Arctic as having been much higher around 1940 than at any time since.” But as Paul Homewood reveals in his blog post, “Temperature adjustments transform Arctic history.” GISS has turned this upside down. Arctic temperatures from that time have been lowered so much that they are now dwarfed by those of the past 20 years. The fiddling with temperature data is the biggest science scandal ever is the headline of The Telegraph article.
Some years ago, I had written an article about it and was condemned for doing that. Now, more and more scientists are coming out to spill the beans that the myth of global warming is being perpetuated by vested interests. If some readers remember, Pankaj Pachauri had admitted that all was not well with their record-keeping. Now, most of the stations recording temperatures have been detected to be falsifying the data to suit the convenience of their political masters.

Vaccination Policing in the USA

Vaccines are forced down the throats of all reluctant parents. There have been instances where the refusing parents were threatened with arrests! Now, there is a ray of hope. In an unusual move, the American Medical Association asserts that informed consent is a ‘fundamental right’ and can never be taken over by the State under any circumstances.

Brahmi Herbal Medicinal Plant

This plant (Bacopa monniera) grows extensively in south Kanara in coastal Karnataka. I remember, as a child, having chutney made out of it once or twice a week. This was used in Ayurveda for several small problems and also was used for enhancing memory. Now, a group of young enthusiastic researchers at the Tata Institute of Fundamental Research (TIFR) tried to see if this plant has any medicinal properties and did a serious study of the whole herbal extract in a rat model. 
The results shocked the researchers. The hippocampus major of the rats’ brain did show significant growth and there were also definite cell changes inside the hippocampus. The latter is that part of the brain which is known to be associated with memory. This little study teaches our conventional researchers a good lesson. Usually, the government has grandiose ideas of doing herbal research using the reductionist paradigm of taking the chemical extracts of the plants. I had opposed it then but was laughed at by the great scientists. All those studies came to grief. Now, the TIFR study will be the new way forward. Could we not make a new beginning to do our own studies instead of aping the West in every way? 


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