Stocks
Nifty, Sensex may continue to rally – Tuesday closing report
We had mentioned in Monday’s closing report that Nifty and Sensex were headed higher. On Tuesday, the major indices of the Indian stock markets opened weak but still closed with gains. The trends of the major indices in Tuesday’s trading are given in the table below:
 
 
Negative global cues, coupled with profit booking, subdued the Indian equity markets on Tuesday. Consequently, the key indices of the Indian equity markets traded flat -- marginally in the green in the morning. With value buying in capital goods, healthcare and bank stocks lifting prices, by afternoon, the major indices closed with small gains. The BSE market breadth was marginally tilted in favour of the bears -- with 1,315 declines and 1,298 advances.
 
Steel exports fell 27% in April this year to 0.308 million tonnes (mt), while finished steel production in the country grew 3.2% to 7.48 million tonnes in the first month of the current fiscal, as per the steel ministry's latest report. "Export of total finished steel was down by 27% in April 2016 (0.308 mt) over April 2015 and declined by 12% over March 2016," said the report of the ministry's Joint Plant Committee (JPC). India imported 0.654 mt of total finished steel in April 2016, down 15.5% over the same month last year.  According to the provisional data released by JPC, production for sale of total finished steel at 7.487 mt, registered a growth of 3.2% during April over year-ago month. "During April 2016, the ISP (integrated steel plants) producers produced 3.956 mt, which was a growth of 1.2% while production for the other producers was up by 3.3%," the report said. The country's steel consumption posted a 5.2% growth in April 2016 at 5.75 mt over corresponding month last year. The report pointed out steel consumption in April was down 29% as compared to March (2016) consumption under the influence of a declining supply side as both production for sale and imports declined. Steel Authority of India shares closed at Rs42.40, down 1.17% on the BSE.
 
Even as Reliance Industries doesn't intend to offer doles on its 4G handsets under the "LYF" brand, some concessions are certainly expected given the state of play in India's mobile phone and data market, global investment advisory CLSA has said in an analysis. "While Reliance has said categorically it is not looking to give handset subsidies, we expect it to come up with some bundled promotional offerings. In a prepaid market like India, any bundled offering may be very different from the handset-subsidy model popular in several other markets," it said. "Unlike the bundling of the phone with the service, we expect Reliance to bundle the service with phones," it said, adding Jio may offer a phone for around Rs.3,400 and free services in the first 3-months, which can cover a part of the handset price and reduce the cost of ownership. "In fact, in the recently launched invite-based scheme, Jio is offering unlimited 4G data, 1,500 voice minutes and 9,000 SMS free for three months on purchase of a LYF phone," it said referring to the scheme under which each employee is allowed to extend the offer to 10 friends. The brokerage was also upbeat on the use of 4G in India. Reliance Industries shares closed at Rs981.35, down 0.16% 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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COMMENTS

DYNAMICLEVELS

1 year ago

Yesterday FII have sold 97258 contracts in the futures markets and 282930 contracts in the Options market in the current expiry. Nifty is expected to open gap down at 7795 as per SGX at 8:30 am IST. Small Cap trend change confirmation level is 5089 and Nifty recent low was 7700. We might see continued selling in the market today.

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Depositors Stunned by RBI’s Benevolence to Jaiprakash Associates
Fixed deposit (FD) investors of Jaiprakash Industries are shocked. On 21st April, The Economic Times reported that the Reserve Bank of India (RBI) had removed 20 companies from the list of 150 entities whose loans had to be provided for by banks against risk of default. One of these was the beleaguered Jaiprakash Associates which figures in Moneylife Foundation’s survey (1,596 complaints) among the top six companies that have the maximum complaints regarding failure to pay the principal or interest on FDs. 
 
While banks celebrate the fact that not providing for the loans will help their bottomlines, hapless depositors are in shock. Worse still, the company has selectively paid a few investors, especially those who had invested through agents who were large fund mobilisers. Media reports also indicate that the RBI breather has followed the Jaypee group’s effort to cut it massive outstanding debt of Rs75,000 crore and its intention to hire experts to restructure its business. Jaiprakash Associates alone has a debt of Rs21,731 crore, according to a Credit Suisse report. 
 
As a proportion of its outstanding, the FD component of Jaiprakash’s debt is bound to be really small and it would be a smart move, reputation-wise, if the company decided to pay them back. A little nudge from the ministry of corporate affairs (MCA) would have made a difference; but it has shown no interest. SD Israni, a well-known lawyer and company secretary and columnist, however, offers an interesting perspective. He says that although the Companies Act, 2013 had not included any provision to punish defaulting companies and their officials, the National Democratic Alliance (NDA) has, in fact, made amends. Section 76A, was inserted into the Companies Act on 29 May 2015 providing imposition of heavy fines and imprisonment for defaults. However, there is a catch. Mr Israni points out that the provision remains a paper tiger because the tribunal that can exercise the power has yet to be constituted and the CLB (company law board) cannot exercise these powers. 
 
Abhay Datar, consumer activist and former banker, points out that Section 76(1) requires companies to create a charge on fixed assets equivalent to the amount of FDs raised. Does this mean that FD-holders are secured creditors, he asks. But here, too, he points out that there is no clarity on whether this would be a first charge or a second charge on the assets. When it comes to small depositors, MCA clearly moves at snail’s pace. So what will push the MCA to give teeth to Section 76A and protect depositors? We are still looking for answers. Meanwhile Moneylife continues to advise savers to avoid investing in corporate FDs lured by a slightly higher interest rate and endangering the principal invested. 
 
NOTE: We at Moneylife request all readers not to share their mobile number/s here. This is a public platform and your mobile number/s may be misused. Kindly do not post your mobile number/s.

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COMMENTS

T V Sundaram

1 week ago

I am also one of the victims - a Super Senior Citizen having crossed 80 years - expecting a refund of a Fixed Deposit matured on the 1st of December 2015 from JAIPRAKASH Associates Limited. I hope someone will take a lead and proceed to reach to its logical end.

George Williams

4 weeks ago

Natrajan sir.well said

Rajan Mathikere

4 weeks ago

FD investor's join together & file case in NCLT & then for decree & see that investors should get thier hard earned money with interest M.Natarajan

Rajan Mathikere

4 weeks ago

FD investor's join together & file case in NCLT & then for decree & see that investors should get thier hard earned money with interest M.Natarajan

Mahesh Bansal

1 month ago

I am an agent for selling JP associates fd. I am mostly sold fdr's to the senior citizens some of them suffering illness due to old age i.e 65yrs +. The owner of JP associates are enjoying freely due to the regular relieve is being give why CLB extending time to stop FDR payment regulerly. so that petty investor not get any relief.Every investor will consider that why CLB extending the time regularly. I think there is something inside story of the decision of CLB 9412267436.

Mahesh Bansal

1 month ago

I am an agent for selling JP associates fd. I am mostly sold fdr's to the senior citizens some of them suffering illness due to old age i.e 65yrs +. The owner of JP associates are enjoying freely due to the regular relieve is being give why CLB extending time to stop FDR payment regulerly. so that petty investor not get any relief.Every investor will consider that why CLB extending the time regularly. I think there is something inside story of the decision of CLB 9412267436.

Mahesh Bansal

1 month ago

I am an agent for selling JP associates fd. I am mostly sold fdr's to the senior citizens some of them suffering illness due to old age i.e 65yrs +. The owner of JP associates are enjoying freely due to the regular relieve is being give why CLB extending time to stop FDR payment regulerly. so that petty investor not get any relief.Every investor will consider that why CLB extending the time regularly. I think there is something inside story of the decision of CLB 9412267436.

Mahesh Bansal

1 month ago

I am an agent for selling JP associates fd. I am mostly sold fdr's to the senior citizens some of them suffering illness due to old age i.e 65yrs +. The owner of JP associates are enjoying freely due to the regular relieve is being give why CLB extending time to stop FDR payment regulerly. so that petty investor not get any relief.Every investor will consider that why CLB extending the time regularly. I think there is something inside story of the decision of CLB 9412267436.

Mahesh Bansal

1 month ago

I am an agent for selling JP associates fd. I am mostly sold fdr's to the senior citizens some of them suffering illness due to old age i.e 65yrs +. The owner of JP associates are enjoying freely due to the regular relieve is being give why CLB extending time to stop FDR payment regulerly. so that petty investor not get any relief.Every investor will consider that why CLB extending the time regularly. I think there is something inside story of the decision of CLB 9412267436.

MDT

1 month ago

We at Moneylife request all not to share their mobile numbers. This is a public platform and your mobile number/s may be misused. Kindly do not post your mobile number/s.

Shankar Mazumder

1 month ago

https://www.change.org/p/can-narendra-modi-s-pro-business-government-save-the-ordinary-retail-investors-who-have-put-their-life-savings-into-jai-prakash-associates-company-fixed-deposits Click on the above link. Sign up to this online petition and share this petition on facebook, twitter & linkedin

Shankar Mazumder

1 month ago

https://www.change.org/p/can-narendra-modi-s-pro-business-government-save-the-ordinary-retail-investors-who-have-put-their-life-savings-into-jai-prakash-associates-company-fixed-deposits Click on the above link. Sign up to this online petition and share this petition on facebook, twitter & linkedin

Shankar Mazumder

1 month ago

Sign up this petition & ensure that JAYPEE Group pays investors & doesn't become next Sahara/Kingfisher/Unitech !!
https://twitter.com/SM_RETIRERICH/status/850024822587351040

REPLY

Ketul Savla

In Reply to Shankar Mazumder 1 month ago

Signed the petition. Thanks. There are some messages to add in some whats app group. Can some one please add me to this group. - 9870545334

vipul mittal

1 month ago

Please add me to WhatsApp group 9814665622.

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