Nifty, Sensex may give up some gains– Weekly closing report

Nifty may keep pushing higher, as long it does not close below 8,350 for the week


The S&P BSE Sensex closed the week that ended on 21st November at 28,335 (up 288 points or 1.03%), while the NSE's CNX Nifty ended at 8,477 (up 87 points or 1.04%). Previous week, we had mentioned that as long as Nifty does not close below 8,320, the index might head higher.

On Monday, after moving in the negative for the major part of the session, Nifty made a strong up move, hit its new lifetime high, and closed near that level. Nifty closed at 8,431 (up 41 points or 0.49%). India’s trade deficit in October rose to $13.35 billion from $10.59 billion last year, according to the data released on Monday. Exports in October contracted by 5.04% at $26.09 billion and the imports rose by 3.62% reaching $39.45 billion.

On Tuesday, although Nifty hit a new life time high at the beginning of the session, it struggled throughout the day to remain in the positive zone. Nifty closed at 8,426 (down 5 points or 0.06%).

Indian Finance Minister Arun Jaitley said most of the contentious issues on the implementation of the Goods and Service Tax (GST) have already been resolved. A memorandum of understanding (MoU) was signed on Monday between India and US, on establishing an Infrastructure Collaboration Platform, under which the two governments would coordinate with the goal of facilitating US industry participation in Indian infrastructure projects.

On Wednesday Nifty remained weak and closed at 8,382 (down 44 points or 0.52%).
The Organisation for Economic Cooperation and Development (OECD) said the Indian economy is showing signs of a turnaround. According to its survey, India's GDP should grow by more than 6.5% annually in the coming years. Ratings agency Moody's revised its outlook on India's corporate sector to stable from negative on expectations of economic recovery and enhanced access to global capital markets.

Next day, Nifty witnessed an indecisive move and closed Thursday at 8,402 (up 20 points or 0.23%). The Ministry of Coal on Wednesday called for comments from the public for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The comments on the draft rules should be given by 24 November 2014.

Finance Minister Jaitley met government bank heads and discussed ways to bring down non-performing assets (NPAs). Jaitley also asked banks to take steps to ensure smooth credit flow to projects.

After a weak opening in the Nifty on Friday, the benchmark made a sharp upmove and closed at 8,477 (up 75 points or 0.90%). The Union Cabinet on Thursday gave its approval to launch "Integrated Power Development Scheme" (IPDS) with the objective of strengthening of sub-transmission and distribution network in the urban areas.

Among the Nifty stocks, the top five gainers for the week were Kotak Mahindra Bank (10%); State Bank of India (10%); Punjab National Bank (4%); Bharti Airtel (3%) and Asian Paints (3%) while the top five losers were Jindal Steel & Power (10%); NMDC (6%); Sun Pharma (5%); Ultratech Cement (5%) and Tata Steel (3%).

 Of the 1,505 companies on the NSE, 657 companies closed in the green, 32 companies closed in the red, while 816 companies closed flat.

Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


ML Top sector


ML Worst sector


Telecom Services




Industrial Intermediates








Auto Components






Real Estate




RBI Credit Card? Reserve Bank says don’t fall in the trap

RBI reiterated it does not carry out any business with an individual, whether through savings bank account, current bank account, credit card, debit card, online banking services or receiving and holding funds in foreign exchange or any other form of banking services. People should refrain from responding to such offers and instead file complaint with Cyber Crime branch of Police, the central bank says


After luring people with various funds, lotteries the fraudsters have now started to use credit card under the name of Reserve Bank of India (RBI) to dupe gullible people. Warning against such efforts, the RBI reiterated that as India’s central bank, it does not carry out any business with an individual, whether through savings bank account, current bank account, credit card, debit card, online banking services or receiving and holding funds in foreign exchange or any other form of banking services.


Explaining the modus operandi, the Reserve Bank in a statement said gullible people are sent a credit card that allows them to withdraw money up to a certain limit, albeit a small sum, from a bank account. After gaining confidence of the victim, the fraudster gets him/her to deposit a huge sum of money in the same bank account. Once the money is deposited, the card stops working and that would also be the last time the holder of the card (victim) would hear from the fraudster.


The central bank pointed out that once the money is deposited in the fraudsters’ account’s, there are remote chances of recovering it.


RBI has listed out the other kind of prevalent frauds, such as:


  • Fictitious offers of large sum of money/lottery winnings by email or through phone calls by posing as RBI official.


  • Fake Reserve Bank website for online transactions


  • Luring members of public to secure their bank accounts against such frauds by asking them to share the bank account details, including user id/password, through an email or by clicking on a link given in email.


  • Offer of employment in the Reserve Bank through email


RBI said fictitious offers are also made in the name of other public institutions, such as, International Monetary Fund (IMF), Income Tax authorities, Customs authorities or public figures like Governor Dr Raghuram Rajan or other senior RBI officials.


Once again cautioning people about falling prey to such offers, the RBI said it can result in compromising one’s own crucial personal information that may be misused to cause direct financial and other loss to them. People, in their own interest, should refrain from responding to such offers in any manner. Rather, they should immediately lodge a complaint with Cyber Crime branch of the Police, the central bank said.



MG Warrier

3 years ago

Reading first the title and the introduction, I had skipped this article, as I thought, credit card holders should be literate enough to know that first they should approach their bank for their banking needs and as RBI’s last and only account opened in the name of an individual was in favour of C D Deshmukh, Governor. But the modus operandi of the miscreants as explained in the article is scaring.
Perhaps, beyond FINANCIAL INCLUSION, RBI and banks should have a nation-wide financial literacy drive suggesting each individual/family getting tagged to a bank branch to ensure the individual’s financial health. Like the family doctor, the FAMILY BANKER should help the individual/family in identifying the right savings and credit ‘products’ best suited for specific needs.
M G Warrier,Mumbai [email protected]

SEBI bans Transgene Biotek top management from markets, finally

The regulator finally woke up to long time misuse of funds by Transgene Biotek and barred its promoters and director from accessing the markets. Moneylife has been highlighting these issues since long


After keeping mum for almost a year, market regulator, Securities and Exchange Board of India (SEBI), has barred Transgene Biotek Ltd’s promoters and directors from accessing the markets.

In an interim ex-parte order SEBI’s Whole Time Member Rajeev Kumar Agarwal, K Koteswara Rao, chairman and managing director of Transgene Biotek, three directors Prashant Kumar Ghosh, Soma Sekhar Marthi and Narayana Murthy Pentyala as well as the company promoters K Nirmala Rao and K Srinivas.

The order also barred Transgene Biotek from issuing any more equity shares, any other instrument convertible into equity shares or any other security till further orders. The order relates to complaints about misuse of funds raised by Transgene Biotek, through the Global Depository Receipts (GDR) route.

Earlier, Moneylife has written  about price manipulation in the Transgene Biotek scrip on the stock markets.

A preliminary investigation by SEBI found that out of total GDR funds, raised in two issues, of $40.5 million, $37.42 million were transferred to various entities. The fund raising was purportedly for business expansion purposes, Transgene said that the funds were transferred for transfer of technologies from the other companies to Transgene. SEBI found no evidence that showed any such transfer of technology to warrant the payments.

The order said, “In the facts and circumstances of this case, I prima facie find that the aforesaid facts prima facie indicate that the acts, omissions and concealment of Transgene and its Promoters/Directors were 'fraudulent' as defined in regulation 2(1)(c) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 ( PFUTP Regulations).”

The order will stay in effect and the de-barred top management and directors of the company will not be allowed access to the markets until the SEBI is able to complete a full investigation into the matter.

You may also want to read…

As SEBI sleeps, Transgene Biotek hits upper and lower circuit on same day!

SEBI refuses to take note of price manipulation in Transgene Biotek – Part I

SEBI refuses to take note of price manipulation in Transgene Biotek – Part II


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