Stocks
Nifty, Sensex may head higher subject to dips – Weekly closing report
We had mentioned in last week’s closing report that Sensex, Nifty were under pressure. The major indices of the Indian stock markets shrugged off the decline and handsome gains over the week. The weekly trends of the major indices are given in the table below:
 
 
The key Indian equity market indices that opened in the green on Monday were trading flat in the afternoon session. Good buying was observed in fast moving consumer goods (FMCG) and telecom sectors, while selling pressure was seen in realty and energy sectors. There was no fresh macro-economic stimulus and the market is in a wait and watch mood until there is clarity in interest rates from the US Federal Reserve. Trends in global crude oil prices, movement of the Indian rupee and further announcements on the monsoon were to influence investors' sentiments. On the domestic front, a key event to be watched was the results of some of the large companies in the capital goods sector. The expectation was negative, and it was likely to put additional pressure on the markets.
 
On Tuesday, the main indices traded in the green during the mid-afternoon session, as healthy buying was witnessed in automobile and fast moving consumer goods (FMCG) stocks. Initially, the key indices opened on a flat note, depressed by weak Asian markets, which were impacted by negative macro-economic data from Japan. The domestic markets soon receded on the back of risk-aversion on the renewed fears of a US rate hike in June. A hike is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India. This had led to an outflow of foreign funds from the domestic equity markets on Monday. Besides, investors were seen reluctant to chase prices higher due to the upcoming F&O (futures and options) expiry and a weak rupee. The BSE market breadth was skewed in favour of the bears -- with 1,599 declines and 907 advances.
 
Positive global cues, including indications that US Fed may not hike interest rates led to a surge in the Indian equity markets on Wednesday. Buying was witnessed in banks, capital goods, automobile, information technology (IT) and oil and gas stocks. Initially on Wednesday, the key indices opened on a higher note, in-sync with their Asian peers, which rose on the back of positive macro-economic data from the US which showed signs of a healthy economic recovery. Besides, higher crude oil prices, positive European indices and a stable rupee restored investors' confidence.  In addition, value buying at key levels and predictions of better-than-expected monsoon rains supported prices. Morgan Stanley also upgraded India to overweight from equal weight adding the positive sentiment for our market. There was been a worldwide stock market rally on Tuesday-Wednesday beginning with the US markets on Tuesday.
 
Positive global cues, along with fresh influx of foreign funds and a rise in global crude oil prices, lifted the global and Indian equity markets further on Thursday. Besides, healthy quarterly results and a strong rupee pushed both the key benchmark indices to their new highest monthly levels. The key indices made substantial gains during the mid-afternoon trade session as healthy buying was witnessed in capital goods, banks and automobile stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,304 advances and 1,142 declines. In terms of broader markets, the midcap and smallcap indices gained more than half a percent each. 
 
The Indian equity markets remained buoyant on Friday. The key indices made gains during the mid-afternoon trade session, as buying was witnessed in healthcare, oil and gas, and automobile stocks. The BSE market breadth was tilted in favour of the bulls -- with 1,391 advances and 1,049 declines. The key indices opened on a higher note, in-sync with their Asian peers and continued to head higher thanks to healthy quarterly results and an appreciation in rupee.

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Midas Touch Investor association says Rs1.50 lakh crore could be released from 4000+ suspended companies that SEBI plans to delist
Midas Touch Investors’ Association (Midas), a well-known investor organisation says that the market watchdog’s plan to delist 4,000 inactive companies, if implemented properly, could result in getting Rs1.50 lakh crore that is estimated to be stuck in these companies. These are companies whose trading has been suspended for over seven years and Midas Touch has been diligently perusing these cases over this period of time.
 
In a recent press conference, the Securities Exchange Board of India (SEBI) chairman UK Sinha had stated that many of the companies SEBI chief UK Sinha wants to delist are on regional stock exchanges, where there's no trading. SEBI is also targeting about 1,200 companies listed on the BSE and NSE that have been suspended for more than seven years.  The exit price to be paid to the shareholders appeared to be according to existing SEBI Act and Regulations. These issues were taken up by Midas through Public Interest Litigation (PIL) in the Delhi High Court.
 
Midas Touch PIL in the matter of 5,142 companies exclusively listed at 22 regional stock exchanges was dismissed by the Delhi High Court in December 2015. Aggrieved by the decision, Midas filed a Special Leave Petition in the Supreme Court. It is likely to come up for hearing after summer vacations.
 
Midas has prayed, among others, that companies be delisted as per the Securities Contracts (Regulation) Act and shareholders fundamental right to seek judicial process be restored, which has been illegally usurped by SEBI circulars. Midas had prayed that SEBI be directed to implement its circular of 2008 in letter and spirit and its order of delisting was anti-investors and illegal. This is by far the biggest PIL, in terms of companies, investors/shareholders and their money involved, in the history of securities market. 
 
The PIL seeks action against SEBI for failing to regulate BSE and NSE regarding monitoring of compliance by listed companies. Despite recommendations from the Sahoo Committee, the market regulator has so far failed to take action against 2,048 companies and its promoters and directors.
 
According to the PIL, over the years, over Rs58,000 crore are blocked due to suspension of 1,450 companies by BSE and NSE.
 
Bad administration by the regulator has eroded the faith of small investors in the securities market who have virtually stopped investing in it to the detriment of the economy, the PIL stated.
 

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COMMENTS

Dr Anantha K Ramdas

9 months ago

This is great boon to suffering investors who hold the shares but have no idea of its present marketable value, and how it can be monetized. What about companies like
Nagarjuna Fertilizers, an active scrip in the past, but I have no idea as to why this is no longer listed. How does one go about disposing the stocks of delisted shares?

jaideep shirali

9 months ago

This move by SEBI to delist companies partly stems from its own lack of concern for the investor. I would like to add that, just as SEBI plans to "cull", in their own words, these



































SEBI has not acted in case of 2048 companies, so its eagerness to cover its negligence and add 2,000 more companies is to be expected. This would however destroy investor confidence in the equity markets. Inspite of micro management in some parts of the capital markets, SEBI has done nothing in terms of improving the debt market or tackling the rampant manipulation and suspected insider trading in equities inspite of the resources it has access to. I would be glad if investing in capital markets in direct equities and debt be made compulsory for the SEBI babus, only then would they understand the pain that the retail investor goes through. Just like "culling" these companies, we need to cull SEBI down to size, if they persist with their indifference to the investor.

Rajesh G

9 months ago

What are the procedures for shareholders who have lost their money and still holding shares of suspended companies like Shree Ashtavinayak Cine vision ltd where there are no whereabouts of the company and their directors are lodged in jail.
Will lodging complaint with midas will help? and what are the steps to be taken as their website says that they are not taking any further complaints now......

Arun Adalja

9 months ago

these companies are vanished and no whereabouts.i do not think anybody will get anything.even existing companies are not paying matured fd amount inspite of clb order.

manoharlalsharma

9 months ago

I am thankful to such agency to bring in the knowledge of SEBI and further would like request for ISIN No-of the shares of the lost compnys also so like many people holding shares in PHYSICAL form can deposit with their custodial./thanks again

REPLY

Arun Adalja

In Reply to manoharlalsharma 9 months ago

visit bse site where you will get isin no of the company or visit nsdl site.

Arun Adalja

In Reply to manoharlalsharma 9 months ago

you c

SSSUBRAMANIAN

9 months ago

it is good but the names sof those 4000 companies should be published to public investors so that they are aware of it

PPM

9 months ago

SEBI is for corporate companies and not for retail investor. SEBI will always act against the retail investors and will support the large corporations like FTIL, DLF et., who cheat investors as the senior management in SEBI itself 100% corrupt.

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