Stocks
Nifty, Sensex may head higher - Tuesday closing report
However, there could be plenty of intraday volatility 
 
The Indian market continued to act in sympathy with the global markets on Tuesday. After a huge crash across all markets yesterday, today the Asian markets were all mostly up except that of China and Japan, while European markets were trading sharply higher and so were US futures. This rubbed off on the Indian markets which staged a modest rally. Global markets also got a boost with a surprise rate cut by China in later afternoon.
 
 
The barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 25,916.26 points, closed at 26,032.38 points -- up 290.82 points or 1.13% from its previous close at 25,741.56 points. The Sensex touched a high of 26,124.83 points and a low of 25,298.42 points during intra-day trade. The broader 50-share CNX Nifty closed higher at 7,880.70 points, with a gain of 72 points, or 0.92%.
 
The Indian rupee also gained in strength. It touched an intra-day high of 65.87 and closed with a gain of 56 paise at 66.08 to a US dollar from its Monday's close of 66.64.
 
Analysts said that Monday's massive correction has made valuations attractive. There is also a sense that the strong economic fundamentals have the potential to hasten the recovery in Indian equity markets in comparison to other larger economies. Other analysts pointed-out the lull in the global commodity prices, especially crude oil which has fallen to its six-year low as a major positive for the Indian economy and the markets.
 
The unexpected move by the People's Bank of China (PBOC) to go in for an inter-policy rate cut on Tuesday will be a positive support to the Indian markets on Wednesday. The announcement came in after market hours in India.
 
Sector-wise, healthy buying was observed in banking, automobile, oil and gas, metal and healthcare stocks. However, only information technology (IT) scrip came under selling pressure.
 
Major Sensex gainers in Tuesday's trade were: Vedanta, up 7.73% at Rs.86.45; Tata Motors, up 6.30% at Rs.329.20; Coal India, up 5.23% at Rs.353.90; ICICI Bank, up 5.06% at Rs.283.50; and Axis Bank, up 4.18% at Rs.502.40.
 
The major Sensex losers were: HDFC, down 1.82% at Rs.1,145.60; Maruti Suzuki, down 1.20% at Rs.4,199.45; Infosys, down 0.56% at Rs.1,086.50; Larsen and Toubro (L&T), down 0.48% at Rs.1,625.60; and Tata Consultancy Services (TCS), down 0.46% at Rs.2,567.35.
 
Among the Asian markets, Japan's Nikkei fell by 3.96% and China's Shanghai Composite Index lost 7.63%, However, Hong Kong's Hang Seng gained 0.72%.
 
In Europe, London's FTSE 100 index was up by 2.85%, French CAC 40 by 4.44% and Germany's DAX Index was higher by 4.59%  at time of this piece was written. 
 
The top gainers and top losers in major indices are given in the table below:
 
 
The closing values of major Asian indices are given in the table below:

 

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Making the crash work in your favour

So far there is no indication of credible policy interventions that might arrest the 'Made in China' rout

 

The devaluation of the Chinese yuan, coupled with anxieties about Beijing's ability to revive the flagging economy, tasted first blood with a massive global sensex slide and a currency tumble. Worse is expected, especially for countries that relied on the Chinese economy as the main growth driver. Rumours abound of the contagion spreading, as indeed it did during the East Asian crisis because of the interlocking of economies.
 
So far there is no indication of credible policy interventions that might arrest the 'Made in China' rout. Investors have started pulling money out of developing countries that they invested in to fuel China's appetite for raw materials and there is genuine fear that the anticipated crisis could trigger a full-blown global slowdown.
 
The Indian economy has so far performed relatively better in local currency and dollar terms. Dealers have not been excessively worried at the current depreciation of the rupee because they see it as being over-valued in any case by around 8-10 percent. Nor, indeed, was RBI Governor Raghuram Rajan perturbed and said he was willing to deploy the country's foreign exchange reserves, if necessary, to shore up the currency. Sensing India's macroeconomic fundamentals to be resilient, Prime Minister Narendra Modi sensed an opportunity for India to fill in the space likely to be vacated by China. The crash, in other words, could be converted into an opportunity.
 
With oil prices at an all-time low, a unique opportunity presents itself for India to make that long anticipated transition towards growth. But for this to happen, the government needs to undertake certain key steps.
 
First, it needs to ensure non-interference in the autonomy of the Reserve Bank of India. The RBI governor has firmly ruled out rate cuts, cautioning that without sustained low inflation, a rate cut would be inflationary. Indeed, the rupee slide would make it well near impossible for RBI to cut rates. Reports that the finance minister is at loggerheads with the RBI governor are seriously damaging because they are perceived to be true. What is equally worrisome is the government's aggressive foray into curbing autonomy, whether in institutions of higher learning or even the Supreme Court. Will RBI be the next institution to fall?
 
Second, Finance Minister Arun Jaitley and his ministry need to concentrate on the series of reforms they are tasked with. Indeed, it would be a major disappointment if Jaitley came up with yet another non-budget. The focus on curbing black money and corruption, while laudable, cannot remain the finance ministry's sole preoccupation.
 
Third, India needs to urgently initiate reforms to improve its rankings on the ease of doing business. As per the 2015 World Bank rankings, India stands at 142 out of 189 countries. Modi has been promising progress on this front for over a year. Unless present rankings and perceptions improve, India will not be able to take advantage of China's downturn and attract foreign capital.
 
Fourth, policy makers need to act with a greater sense of urgency. The onion shortfall, for instance, was estimated several months ago but delays in import resulted in the current crisis-like situation.
 
With the Indian economy on a growth trajectory and not dependent on the Chinese economy, even a conservative Moody estimate of 7 percent growth would be a useful plank to build upon. But this requires consistency of purpose and clear policy directives monitored by PMO. Unless, the government seizes the opportunity the crash has presented, Modi would be criticized for presiding over UPA 2 in a new incarnation.

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SEBI asks Aspen Projects, directors to refund money garnered from investors
SEBI asked Aspen Projects to refund money it collected from investors with an interest of 15%
 
Market regulator Securities and Exchange Board of India (SEBI) has asked Kolkata-based Aspen Projects India Ltd (Aspen Projects) and its directors to refund money, the company had illegally collected from investors through secured redeemable debentures and preference shares, along with an interest of 15%.
 
SEBI also prohibited Aspen Projects and its directors Abhijit Dasgupta, Bhaskar Saha, Ashim Maitra, Ujjal Kumar Roy, Avijit Kumar Ganguly, Debopam Sur and Goutam Sarkar from accessing markets for four years. In addition, Ram Sunder Bhattacharya and Mita Roy are barred from continuing as debenture trustees for the secured redeemable debentures of Aspen Projects and also from taking up any new assignments or involvement in any new issue of debentures till further directions.
 
Earlier in June, SEBI had barred Aspen Projects and directors from collecting money from investors and asked it to stop mobilising any funds, sell properties or raise any money from public.
 

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