Nifty, Sensex may enjoy a small bounce: Tuesday Closing Report

Three days of continuous fall may be followed by a small gain but the trend is down

The market, which witnessed a recovery from the lows in the last hour of trade on buying in select blue chips, still settled in the negative for the third consecutive day. Disruption of Parliament proceedings for the sixth day in a row, which has led to a halt in the reforms process, is making investors restless. Yesterday we had mentioned that the Nifty will move sideways with a negative bias, however, a lower low may take the index further down to its first support at 5,325. Today the index went below this level and settled slightly above it at 5,335. We may now see the benchmark seeing a small bounce back. The National Stock Exchange (NSE) saw a much larger volume of 64.93 crore shares and the advance decline was hugely negative at 400:1277.


The market opened flat with a negative bias tracking weak global cues and the continuing political imbroglio at the Centre. US markets settled mostly lower overnight as investors await the announcement from Federal Reserve chief Ben Bernanke at Jackson Hole, Wyoming, on Friday. Markets in Asia were mixed in morning trade as the Japanese government downgraded its growth assessment in view of the global slowdown.


Back home, the Nifty started off at 5,348, down two points and the Sensex fell three points to 17,676. Buying in select stocks enabled the market hit its intraday high in initial trade. At this points, the Nifty rose to 5,359 and the Sensex 17,712.


The benchmarks made half-hearted attempts to venture into the positive in the morning session but strong selling pressure amid choppy trade ensured that the market stayed lower.


Meanwhile, Deepak Parekh, chairman, HDFC, in an interview to a popular business TV channel, expressed concerns of a possible downgrade if the current situation of policy paralysis continued. “If downgraded to junk status, we will see substantial outflows,” he said.


The market continued to slide further in noon trade as a lower opening of the European indices added to the woes. The indices dropped to their lows a little before 2.00pm. At this point the Nifty fell to 5,313 and the Sensex retracted to 17,571.


Bargain hunting at the lows enabled the market stage a minor recovery in late trade. But the gains lacked strength leaving the benchmarks in the negative for the third day.


The Nifty settled 16 points down at 5,335 and the Sensex finished the trading session at 17,632, a loss of 47 points over its previous close.


Among the broader markets, the BSE Mid-cap index declined 1.03% and the BSE Small-cap index dropped 1.42%.


The sectoral gainers were BSE IT (up 0.92%); BSE Fast Moving Consumer Goods (up 0.70%); BSE TECk (up 0.58%) and BSE Power (up 0.57%). BSE Metal (down 2.44%); BSE Capital Goods (down 1.66%); BSE Bankex (down 0.97%); BSE Auto (down 0.81%) and BSE PSU (down 0.68%) languished at the bottom.


The Sensex was led by TCS (up 2.24%); Sun Pharmaceutical Industries (up 1.69%); Tata Power (up 1.55%); Dr Reddy’s Laboratories (up 1.53%) and NTPC (up 1.48%). The main losers were Sterlite Industries (down 5.13%); Jindal Steel (down 4.88%); Hindalco Industries (down 3.09%); Larsen & Toubro (down 2.53%) and ONGC (down 1.91%).


The top two A Group gainers on the BSE were—United Breweries (up 9.22%) and Gujarat State Petronet (up 4.62%).

The top two A Group losers on the BSE were—Welspun Corp (down 9.33%) and Wockhardt (down 7.43%).


The top two B Group gainers on the BSE were—HCL Infosystems (up 20.50%) and Koa Tools India (up 17.39%).

The top two B Group losers on the BSE were—Net 4 India (down 19.96%) and Gemini Communication (down 19.92%).


The main performers on the Nifty were Power Grid Corporation (up 3.42%); TCS (up 2.28%); Asian Paint (up 1.80%); Dr Reddy’s (up 1.67%) and Sun Pharma (up 1.65%). Sterlite Ind (down 5.53%); Jindal Steel (down 5.31%); Jaiprakash Associates (down 3.50%); Hindalco Ind (down 3.27%) and Sesa Goa (down 3.20%) settled as the top losers.


Markets in Asia closed mostly down as investors turned cautious ahead of an announcement from Fed chief Ben Bernanke later this week. Concerns about China’s economic growth also and the scaling down of its growth assessment by the Japanese government also weighed on the markets.


The Jakarta Composite shed 0.07%; the KLSE Composite lost 0.06%; the Nikkei 225 declined 0.57%; the Straits Times fell 0.15%; the Seoul Composite slipped 0.08% and the Taiwan Weighted tanked 1.42%. On the other hand, the Shanghai Composite climbed 0.85% and the Hang Seng rose 0.07%.


At the time of writing, among the European markets the CAC 40 of France was down 0.58%, the DAX of German was 0.32% lower while UK’s FTSE 100 was 0.04% higher. At the same time, the US stock futures were marginally higher.


Back home, foreign institutional investors were net buyers of shares aggregating Rs200.40 crore on Monday. On the other hand, domestic institutional investors were net sellers of equities totalling Rs500.71 crore.


IT firm Mahindra Satyam (Satyam Computer Services) has partnered with global enterprise applications company IFS for joint sales and marketing activities of IFS’ Applications software suite and staff training. The agreement covers joint marketing, including sponsorship of the 2012 IFS World Conference, which will be held in October in Gothenburg, Sweden, Mahindra Satyam said in a statement today. The stock tanked 3.47% to settle at Rs95.90 on the NSE.


Dhanuka Agritech, a crop protection solutions company, has launched three agrochemical products in Tamil Nadu. One of the new products is an insecticide that can tackle sucking insects in cotton, vegetable, fruits, cashew and tea. The other, Fluid, is to fight larval insecticide in major crops, while the third one, Fuzi Super, is an herbicide for paddy. The stock dropped 3.23% to close at Rs90 on the NSE.


After massive protests by locals, the Goa State pollution Control Board (GSPCB) has asked Sesa Goa to stop all activities at its coke oven unit at Navelim in Bicholim taluka, 40 km away from the state capital of Panaji. The locals held a day long bandh yesterday protesting against the increasing pollution allegedly due to coke oven plant at Navelim. The stock declined 3.20% to close at Rs181.50 on the NSE.



Press Council wants electronic, social media under its purview

Journalistic ethics apply not only to the print media but also to the electronic media and there is no reason why electronic media be not regulated by a statutory body says the Press Council

New Delhi: The Press Council of India (PCI) has urged Union Government to carry out necessary amendments to bring electronic and social media under its purview, saying broadcast media's claim for self-regulation is 'futile' and 'oxymoron', reports PTI.
The PCI, which also sought to be renamed 'The Media Council', cited the recent incidents where social networking sites were used to spread rumours that triggered exodus of people belonging to north-eastern states to justify its demand for widening its area of operation and said there should not be any "dilly-dallying" in the matter by the Government.
In a statement released on Tuesday, the PCI said that it had resolved that the "Government of India be requested to initiate suitable legislation to amend the Press Council Act, 1978, by (i) bringing the electronic media (both broadcast and social media) within the purview of the Press Council Act, and renaming it as The Media Council." 
The PCI also sought more powers for itself, the statement said, adding that it had passed a resolution to this effect at a meeting held yesterday in the capital.
"Journalistic ethics apply not only to the print media but also to the electronic media, and hence there is no reason why electronic media be not regulated by a statutory body, when the print media is regulated," it said.
PCI Chairperson Justice Markanday Katju has in the past also expressed views that the electronic media should be under the purview of the council.
The PCI also gave reasons for passing the resolution to include the electronic and the social media within its ambit.
"When the Press Council Act was enacted, there was no electronic media, and hence there was no need for any legislation for regulating the electronic media," the PCI statement said.
"Subsequently, the electronic media has come into existence. Journalistic ethics apply not only to the print media but also to the electronic media...," it said.
The PCI said that experience had shown that "the claim of the broadcast media for self-regulation is futile and meaningless, because self-regulation is an oxymoron." 
"All social activity has to be regulated. Regulation is different from control. In control, there is no freedom, while in regulation, there is freedom but it is subject to reasonable restrictions in the public interest," the PCI statement said.
The Press Council also said that it was in favour of only regulation and not control, and that this regulation should be by an independent statutory authority like the Press Council of India and not the government.
The Council said that it presently has 28 members (apart from the Chairman), of which, 20 are representatives of the Press.
"These 20 members are not appointed by the government but elected by press bodies. All important decisions are taken by majority vote. If the electronic media is also brought under the Press Council (to be named The Media Council), the electronic media will also have their representatives in the Council," it said in its statement.
The Council said that recent happenings had indicated that regulation of media was important.
"In recent times, experience has shown that the unregulated electronic media is playing havoc with the lives of the people. An example is what happened to the people of North-East," the PCI statement said.
"Hence, the Press Council resolved that now the time has come when there should not be any dilly-dallying in the matter by the Government, and the amendments to the Press Council Act, as proposed above, should be made forthwith," the PCI said.


HDFC Invest Wise: One more ULIP

With the market already full of ULIPS that inflicted losses on the savers, here’s another product that joins the category. Will it be any better than the existing ones?

HDFC Life Insurance has launched a single premium ULIP (unit linked insurance product) plan named “Invest Wise”, which is an investment product aimed at saving for long-term goals, such as for children’s education and marriage or else investors’ own retirement planning. Targeted towards its so called “Wisdom Investor” segment, the plan is meant for the age group of 45 to 70 years with a fixed term of 15 years and offers a five-fund option for investment. The settlement options include withdrawal of funds in various patterns included the one for five years. The sum assured is fixed at 1.1 times the premium. There is no cap on the premium.


Since the sum assured is low, more of the premium money would be directed towards investment, which means more returns at withdrawal or maturity. Also, since the term is fixed, investors should be able to align the plan to the life goals they wish to fulfil through it.


In case death happens before 60, the sum assured minus withdrawals made in two years proceeding the year of death or the fund value, whichever is higher, would be paid. However, in case of death after 60, all withdrawals will be deducted from the sum assured for comparison with the fund value.


Many such plans exist in the market, the only minor difference being that this plan would invest in more market-oriented instruments compared to the other child or retirement ULIPS. In other words, this seems to be a me-too product with little difference. The bigger issue is that we are never sure how the corpus would grow over time.



Madhusudan Thakkar

5 years ago

How can IRDA pass such inferior, deficient, flawed, faulty, defective, substandard, imperfect & abysmal product?On the one hand IRDA chief is singing about adequate "Insurance" component. Why IRDA has closed its eyes in above?Since this plan does not offer 10 times of life cover there is no question of tax benefits also.


5 years ago

I invested in same kind of unit linked plan 2 yrs back named HDFC sl crest highest investment guarantee fund , which is giving guarantee for Rs.15, my average investment ratio for 2 yrs around Rs.9.5, ie 7.5% p.a return on the policy maturity, I invested when benchmark nifty around 5400, Nifty went upto 5620 but the fund is not even crossed Rs.10 and include all other charges like FMC ,Mortality, etc., nothing the investor will get at the end. moral of the story: Use the product for the purpose they developed, Insurance is for security to life and majorly not for wealth

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