Stocks
Nifty, Sensex may hit a wall: Weekly Market Report

The Nifty will find it hard to break through 6,000 in this rally. If it does, the next resistance would be around 6,025

The market settled in the green, snapping its five week losing streak, mainly on signs of economic activity across the world picking up. Positive indicators from Japan, China and the US supported investor sentiments. Indian investors will look at the factory output data and headline inflation figures in the week ahead, which may dictate the Reserve Bank of India’s (RBI) stand in its policy review on 19th March.

 

The Sensex climbed 765 points (4.04%) at 19,683 and the Nifty advanced 226 points (3.95%) to close the week at 5,946. The market is likely to see a correction. The Nifty will find it hard to break through 6,000 in this rally. If it does, the next resistance would be around 6,025.

 

 The market settled marginally lower on Monday on unsupportive global cues following news that the Chinese government is looking to introduce initiatives to rein in property prices. The market settled in the positive on Tuesday on global support. Firm economic indicators from the US supported gains in the domestic market on Wednesday.

 

A recovery in the second half of trade helped the indices close higher on Thursday. The market closed in the positive on Friday on gains in oil & gas, FMCG, metal and banking stocks.

 

In the sectoral space, BSE Realty jumped 7% and BSE Bankex surged 6% while the BSE Consumer Durables (down 2%) was the lone loser this week.

 

The top Sensex gainers were Sterlite Industries, ICICI Bank (up 8% each), Larsen & Toubro (up 7%), Cipla and Hero MotoCorp (up 6% each). Hindustan Unilever (down 3%) and Bajaj Auto (down 1%) were the losers.

 

The Nifty was led by IDFC (up 10%), Sesa Goa (up 9%), ICICI Bank, Jaiprakash Associates and Siemens (up 8% each). The key losers on the benchmark were HUL, Ambuja Cements (down 3% each), Bajaj Auto and NTPC (down 1% each).

 

Prime Minister Manmohan Singh on Friday expressed confidence that the economic slowdown will not continue and the country will bounce back to the growth rate of 7% to 8% in next two to three years.

 

Prime Minister's Economic Advisory Council (PMEAC) chairman C Rangarajan said policy rate cut by the central bank will depend on inflation movement, among other factors. Inflation measured by the Wholesale Price Index (WPI) had declined to 6.62% in January. It was 7.18% in December and 7.24% in November.

 

In international news, The US added 236,000 jobs in February, while unemployment rate fell to 7.7%, the lowest since December 2008, according to the Labor Department. Investors look at the nonfarm payrolls data as a measure of economic recovery. The Federal Reserve had said it will maintain its low interest rate policy until unemployment falls to 6.5% and inflation rises to 2.5%.

 

Meanwhile, China maintained its GDP growth target at 7.5% for 2013 and raised its budget deficit forecast as the government reduces taxes and looks at fresh initiatives to support consumer demand.

User

Finance minister meets SEBI board; discusses plans for foreign investors

SEBI chairman UK Sinha informed the media that the finance minister has emphasised on the need for the regulator to be alert on various issues concerning the capital markets, including the technology related challenges

 
Finance minister P Chidambaram on Friday discussed with the Securities and Exchange Board of India (SEBI) the future agenda for growth of capital markets, as also steps needed for simplified KYC norms for foreign investors.
 
After a meeting between SEBI board members and Chidambaram, SEBI chairman UK Sinha told reporters that the finance minister has emphasised on the need for the regulator to be alert on various issues concerning the capital markets, including the technology related challenges.
 
Sinha said the Chidambaram addressed the SEBI board which made a presentation to the finance minister regarding various steps taken by the regulatory authority, as also on its future agenda.
 
The issues discussed also included simplified set of KYC norms for foreign investors and various new offices being opened by the regulator in different parts of the country for the benefit of the markets and investors.
 
With regard to the ongoing probe into a crash in some mid-cap stocks recently, Sinha said that the investigations are continuing and SEBI has collected some data in this regard.
 
SEBI chief said that the information collected so far is not conclusive in nature and the probe would take some more time.
 
“But, we want to assure everyone that we are acting very fast whenever there are attempts for market manipulations,” Sinha said.
 
SEBI chairman said that the finance minister also expressed satisfaction over various steps being taken by the regulator for the capital markets. 
 
According to Sinha, Chidambaram expressed satisfaction on various measures by SEBI including 25% public shareholding norm.
 
Further, Sinha said that the finance minister has assured that PSUs would follow the minimum public shareholding norms.
 
He said the market regulator is planning to open more offices across the country. “We also told him (finance minister) of our plans to reach out to various parts of the country. For example SEBI has been opening new offices in the last two years,” he said.
 
“There is a plan to open more and more offices,” he added.
 
On the subject of Know Your Customer (KYC) norms, the chairman said that process is on to make the norms simpler for the investors.
 
“We will be able to do it (KYC norms) in a manner that both domestic and foreign investors find that investments are becoming easier in the country,” he said.
 
Sinha further said SEBI would not “compromise on the KYC part in the sense that any risk will not be allowed to take place and also ensure how we can make it more simple,” The process is on and very shortly SEBI will be announcing that, he said.
 
Further, Sinha informed that the Chandrasekhar Committee which working on guidelines for foreign investors would be holding a meeting on 19th March.
 
Responding to question on Rajiv Gandhi Equity Savings Scheme, he told reporters that SEBI is ready on its part.
 
“If you read it (the budget document) clearly the changes have to be made by the government... It is more of a tax issue,” he said.
 
With regard to the mid-cap crash in July last year where shares of certain companies had fallen in the range of 20%-26%, the SEBI chairman said that it is still under probe and will take more time.
 
“We have acted fast... It will take a little more time. Let me assure that if there is any attempt by anybody for manipulation we will act very fast,” he said. 
 

User

World Bank bars L&T for six months over forgery

The debarment pertains to a bid submitted by L&T through regional business head of its medical equipment and systems unit to a World Bank-financed project in Tamil Nadu in 2008

 
The World Bank (WB) has barred Indian conglomerate Larsen & Toubro (L&T) from doing any business with it or the projects funded by it for six months, after finding that a senior executive of the Indian conglomerate has indulged in fraud.
 
The debarment will continue till 6th September, making L&T ineligible for being awarded contracts for any World Bank-funded projects, from receiving any loan proceeds made by the WB or participating in any of the project financed by it.
 
The matter pertains to a bid submitted by L&T through regional business head of its medical equipment and systems unit to a World Bank-financed project in Tamil Nadu in 2008.
 
L&T submitted a bid on 3 September 2008 through the regional business head, to supply 130 ultrasound scanners under the TN Health Systems project. Upon evaluation, L&T’s bid was found to be the lowest-priced, but a complaint was later received that some certificates submitted by the company might have been forged.
 
The bid contained 115 performance certificates purportedly issued by medical facilities stating that the ultrasound scanners supplied by L&T were working well.
 
The official said that some medical facilities may have mistakenly denied issuing the certificates. In December 2008, the World Bank has cancelled the tender and awarded the contract to another company. 
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)