Stocks
Nifty, Sensex may rally a bit – Weekly closing report
Nifty may rise upto 8,100 subject to dips
 
We had mentioned in last week’s closing report that Nifty, Sensex are weak and that while Nifty may bounce back during the week, the rallies will be met by selling until Nifty reclaims 8,200. Over the week, the indices steadily lost ground (though making small losses in each day’s trading). Considering the whole week, the losses have been on the scale of 1%-1.5% in each of the indices. Based on the current cautious mood of the investors, it can be said that the indices are not likely to make big gains immediately next week, even though we expect a small rally. The trends of the major indices in the Indian stock markets are given in the table below:
 
 
A slowdown in manufacturing activity, uncertainty over Bihar election results and heightened chances of a US rate hike depressed the Indian stock markets and the major indices closed lower on Monday. Furthermore, falling Asian markets on the back of weak Chinese factory data caused the Indian indices to a downward trend. 
 
The latest Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month showed a contraction due to a slower increase in new orders. The PMI was at a 22-month low of 50.7 in October 2015. China's PMI came in at 49.8 in October, unchanged from September, signalling stagnation in manufacturing.
 
On Tuesday, choppy market conditions prevailed, as caution grew over Bihar election results, ongoing results season and heightened chances of a US rate hike. Initially, both the bellwether indices of the Indian equity markets opened in the positive territory. However, both indices ceded their initial gains as caution grew on the heightened chances of a US rate hike. Furthermore, investors were seen anxious about the Bihar election results and ongoing results season. Short covering was observed, as investors exited their investment positions after six consecutive sessions of losses at both the bellwether indices.
 
On Wednesday, caution on quarterly earnings and the likelihood of a US Federal Reserve interest rates hike in December 2015 kept the indices range-bound and to finally close in the red. Positive Chinese macro-economic data and enthusiastic response to Japan Post's initial public offering (IPO) buoyed the Asian markets elsewhere.
 
On Thursday, anxiety over the outcome of the Bihar assembly polls coupled with upcoming US jobs data dented investors' sentiments in the Indian equity markets and led to a sharp correction. The US jobs data, to be released on Friday, is expected to give cues on whether the US Fed will raise interest rates in its December meeting.
 
On Thursday, in a bid to put some 20,000 tonnes of idle gold to productive use and cut imports worth $35-$45 billion annually, India today launched three schemes related to the metal, including domestically minted coins with the images of Ashok Chakra and Mahatma Gandhi. The schemes launched by Prime Minister Narendra Modi also included one to convert jewellery and other similar yellow metal assets with the people into interest-bearing deposits, as also sovereign bonds with an eight-year tenure but with an exit option after five years. According to the World Gold Council, an estimated 22,000-23,000 tonnes of gold is lying idle with households and institutions in India. The annual imports amount to around 850-1,000 tonnes valued at $35-$45 billion.
 
On Friday, caution was in the air for the investors due to elections in Bihar and a potential interest rate hike from the US Federal Reserve. The major indices in the Indian stock markets were range-bound for most of the day. Nifty closed marginally lower at the end of the day and Bank Nifty marginally higher. The BSE Sensex closed with a small loss of 0.15% over Thursday’s close. 
 

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Uday will help wipe out discoms' losses by 2019: Goyal
Power Minister Piyush Goyal said on Friday that the Ujjwal Discom Assurance Yojana (Uday) approved by the union cabinet will help wipe out the accumulated losses of state electricity distribution companies (discoms) by 2019.
 
"A clear road map has been drawn to solve the present crisis of discoms," he said at the opening of the conference of state power ministers here, while referring to the discoms debt restructuring plan cleared by the cabinet in New Delhi on Thursday.
 
With the losses of electricity distribution companies in India touching a staggering Rs.3.8 trillion ($58 billion), the cabinet on Thursday approved a major restructuring and revival package for the sector, with both checks and incentives, to remove what is considered the weakest link in the government's ambitious plan of power for all by 2022.
 
Announcing the cabinet decision to reporters on Thursday, the minister said the Uday package includes steps to reduce the interest burden of discoms by as much as 600 basis points, by converting 75 percent of their debt into state governments bonds. These bonds, he added, will bear the same interest as that for government securities, plus 50 basis points.
 
Goyal assured the power ministers of states and union territories gathered here that apprehensions regarding the proposed amendments to the Electricity Act would be addressed.
 
Referring to India's renewable energy plan target for installed solar power capacity of 100 gigawatt (GW) by 2022, Goyal said the target could be achieved earlier with cooperation of the states.
 
"I am confident that we can achieve the renewable energy targets, not necessarily six-and-half years from now but possibly even in four-and-half years from now, if we all work together as a team," he said.
 
India has pledged to improve emissions intensity of its gross domestic product by 33-35 percent by 2030 below 2005 levels.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Select three information commissioners in six weeks: Delhi HC
With the Central Information Commission facing a huge pendency of cases, the Delhi High Court on Friday directed the centre to finalise the selection of three central information commissioners within six weeks.
 
"The selection process that has already been commenced vide notifications dated February 25, 2014, and July 16, 2014, shall be finalised within six weeks from today (Friday) and the three vacancies of information commissioners existing as of today shall be filled up from amongst the 553 applications received in reference of the said two notifications," a division bench of Chief Justice G. Rohini and Justice R.S. Endlaw said.
 
"The selection process pursuant to the circular dated September 9, 2015, shall be confined for selection and appointment of the Chief Information Commissioner in the vacancy that would arise with effect from December 2, 2015, and one information commissioner which is likely to arise with effect from December 2, 2015.
 
"The tenure of Chief Information Commissioner (CIC) Vijai Sharma will be completed on December 1, 2015, and in case one of the serving information commissioners is appointed as the CIC in the vacancy that would arise from December 2, one more vacancy of the IC is likely to arise," said the bench.
 
The court order came on a public suit filed by Right to Information activists R.K. Jain, Lokesh Batra and Subhash Chandra Agarwal. 
 
The petitioners contended that the Central Information Commission was created as a statutory body to decide appeals and complaints against public authorities for non-compliance of the RTI Act. 
 
The commission's proper functioning was essential for the proper implementation of the RTI Act, argued Prashant Bhushan, counsel for the petitioners. He said the government had attempted to stifle the functioning of the transparency law by failing to do its statutory duty to make appointments.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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