Stocks
Nifty, Sensex may rally next week – Weekly closing report

The rally will most likely be a weak one

 

The S&P BSE Sensex closed the week that ended on 27th March at 27,459 (down 802 points or 2.84%), while the NSE’s CNX Nifty closed at 8,341 (down 230 points or 2.68%). Previous week, we had mentioned that if Nifty remains weak, the decline may halt at around 8,300. The low was 8,269. 
 
The Indian stock market was weak for the entire week. After several failed attempts to move up, Nifty closed Monday, lower for the fourth consecutive session. Nifty closed at 8,551 (down 20 points or 0.23%). The highlight of the day was SEBI allowing debt-to-equity conversion by banks for distressed companies, subject to certain clauses of the SEBI’s Issue of Capital and Disclosure Requirements (ICDR) regulations and takeover norms of SEBI, which are to be relaxed.
 
After the indecisive move on Monday, next day Nifty closed in the red. Nifty closed Tuesday at 8,543 (down 8 points or 0.09%).  The Asian Development Bank (ADB), in a report said that it anticipates India's economic growth to accelerate to 7.8% in the fiscal year ending 31 March 2016, while a gross domestic product (GDP) growth of 6.3% in both 2015 and 2016 for Asia.
 
On Wednesday, ahead of March futures and options (F&O) expiry, the 50-share Nifty moved listlessly, but closed lower. The benchmark closed at 8,531 (down 12 points or 0.14%).  Standard & Poor's (S&P) Ratings Services in its special report titled "India Credit Spotlight" said that the country’s reform drive and economic momentum could give plenty of growth opportunities to top corporates. It also said that sectors like utilities & infrastructure, metals & mining, oil & gas and telecom sectors still have high debt levels.
 
On Thursday, the weakness on the US indices adversely affected market sentiments in India further, pulling Nifty sharply lower. For the seventh consecutive session, the 50-stock index closed in the red at 8,342 (down 189 points or 2.21%). In a move to improve utilisation of gas-based power generation capacity in India, Cabinet Committee on Economic Affairs (CCEA) has approved a mechanism, which requires sacrifices to be made collectively by all stakeholders, including the Central and State Governments, by way of exemptions from certain applicable taxes and levies on the incremental RLNG being imported for the purpose.
 
Meanwhile, finance Minister Arun Jaitley said that he hopes to pass the Constitution Amendment Bill for the introduction of Goods and Services Tax (GST) in second half of the Budget session, which begins on 20 April 2015. The US and India are planning to launch negotiations to sign a high-quality bilateral investment treaty to create an enabling business environment in India.
 
On Friday, Nifty opened in the green and continued to move in a range. However, by the end of the morning session, it gave up all the intra-day gains and moved in the red. This was followed by the benchmark making an effort to revive, which ended with it closing flat. Nifty closed at 8,341 (down 0.75 points or 0.01%).
 
Among the news of the day was that the price of domestic natural gas prices would be slashed by 9% to $4.56 per unit from 1st April to reflect the softening in international prices, benefiting users in the power and fertiliser sectors.
 

User

Cleaning 60 lakh kgs of adulterated pepper under court diktat!
About 60-lakh kgs of pepper confiscated in 2012 due to adulteration is supposed to be cleaned with water under a court order. Is it feasible?
 
Mumbai-based National Commodities and Derivatives Exchange (NCDEX), is in the process of cleaning 60-lakh kg of pepper, following an order from the Kerala High Court. This 60-lakh kgs of pepper has been adulterated by coating with carcinogenic oils and paraffin. 
 
These stocks had been confiscated in 2012 and kept sealed in various godowns in southern Kerala and were ordered to be destroyed by the then Food Safety Commissioner. This media report was followed up through applications under the Right to Information (RTI) Act and the facts that have emerged, though not even a fraction of the info sought, are, to say the least, horrible, says Major PM Ravindran (retd). 
 
Here is the three-sentence order of A Muhammed Mushtaq, judge of the Kerala High Court…

 
The order reads, “Considering the facts and circumstances of the case there shall be direction to the first respondent (Commissioner of Food Safety, Kerala) to allow the petitioner (NCDEX) for cleaning all the sealed stocks of pepper and forward the samples of cleaned pepper to any of the FSSAI notified laboratories. The modalities for taking out the quantity and the manner in which it has to be taken for testing shall be done by the petitioner as per the direction of the first respondent. It is made clear that this exercise is without prejudice to the petitioner's rights/claims etc against any parties for the cost incurred.”
 
Major Ravindran says, “The first reaction on seeing the High Court order was how it can issue such directions? On thinking further, because we cannot allege that our Courts can be wrong, a doubt arose as to whether the answers to the following questions had been brought to the notice of the Court.”
  1. The quantity of water required to clean this large quantity of pepper.
  2. Whether the whole quantity can be cleaned at one place.
  3. Whether this large quantity of water is available wherever it is proposed to be cleaned.
  4. The details of the process used for the proposed cleaning.
  5. The stages in the process where things can be manipulated and how such pitfalls would be avoided. For example instead of rinsing thrice, the material is only rinsed once or twice.
  6. The cost of cleaning this complete quantity, including transportation to cleaning centre(s) from their present locations.
  7. Whether only Indian Products Ltd, Walayar has the technology and knowhow to clean contaminated pepper. What is their expertise and experience in this field?
  8. Whether the cleaned product would be fit for consumption.
  9. What are the contaminants that could have permeated/been absorbed by the pepper during the prolonged storage?
  10. Have reasonable samples been cleaned using this process, evaluated for fitness for consumption and the result submitted to the court? If not, why not? If yes, what are the results?
“Though it is such an important issue,” Major Ravindran said, “it is shocking that the order is not a speaking order and the facts and circumstances referred to in it are available only in an affidavit submitted by the applicant to the High Court. In fact, the first respondent did not even have that part of the order giving the details of the petitioner and the respondent(s). See the copy (below) of the order provided by the Public Information Officer of the Food Safety Commissionerate.”
 

 
He said, the order of the Commissioner is fairly elaborate but misses only one thing- the allotment of resources for this futile herculean task! 
 
“I say futile because pepper being an organic substance, I cannot believe that whatever has been ingested by it, can be removed by superficial cleaning. To those who disagree, please try removing salt from raw mango kept in brine for a month!” Major Ravindran added.
 
The Kerala State Pollution Control Board (KSPCB), which is responsible for approving facilities with the cleaning company, only knows whatever data has been provided by the company. But even then it does not seem competent to take a rational decision. 
 
 
For example, the company has intimated that its water consumption is only 7,000 litres per day from its bore well. And now look at the quantity of pepper cleaned as per the Asst. Commissioner of Food Safety, Palakkad below. 
 

 
On just one day, 24 January 2015, 18.95 tons of pepper had been cleaned/ processed! Of course a cursory look at the data of pepper brought for processing and processed would reveal that para 7 of the Commissioner's order has not been complied with!
 
Major Ravindran says this brings us to the question: what should We, the People, do when all the institutions of the government fail us with impunity?

User

COMMENTS

Vaibhav Dhoka

2 years ago

Many time courts passes unjust orders and people refrain from criticism due to fear of Contempt.

A bank run by beggars, for beggars in Bihar town
A group of beggars in this Bihar town has opened their own bank, which they run and manage to provide financial security in times of crisis.
 
Dozens of beggars, who have been depending for their survival on alms from hundreds of Hindu devotees at the gate of 'Maa Manglagauri Mandir' (temple) in Gaya town for years, have started the bank.
 
The beggars call it Mangala Bank.
 
"It is true that we have established a bank for ourselves," said Raj Kumar Manjhi, one of the 40 beggars who are members of this unique "bank".
 
"Bank's manager, treasurer and secretary along with one agent and other member, who are running and managing it, are all beggars," Manjhi told IANS in Gaya, about 100 km from here. Manjhi, incidentally, is the manager of the bank.
 
Manjhi, who is literate enough to manage the accounts and other works of the bank, said: "Each of us (beggars) deposits Rs.20 every Tuesday in the bank that comes to Rs.800 weekly deposit."
 
Malti Devi, who is secretary of the bank that was established six months ago, said: "It began last year with a big hope and to fulfill aspirations of beggars. We are still not treated well in the society because we are poorest of the poor." 
 
Malti now reaches out to more and more beggars by opening their account.
 
"Most of the beggars who are members of the 'bank' have neither BPL (Below Poverty Line) card nor Aadhaar card," she said.
 
Manjhi's wife Nagina Devi is treasurer of the bank. She said: "My duty is to manage the deposit money." 
 
Bank's agent Vanarik Paswan said his job is to collect money from each member weekly for deposit.
 
Manjhi said their bank helped him when he faced an emergency. 
 
"Early this month, my daughter and sister sustained burn injuries while cooking. The bank has provided me a loan of Rs.8,000 for their medical treatment. It is an example of how the bank can help a beggar like me without any paper work or guarantor as practiced in nationalised and private banks," he said.
 
Manjhi would not have to pay interest on his loan for a month.
 
"The bank has made it mandatory to pay interest on a loan at the rate of 2 to 5 percent from next month to put pressure to pay back loan amount," Malti said.
 
Beggars like Nathun Budha, Basant Manjhi, Rita Masomat, Dhaula Devi said that they were happy that at least now they have their own bank.
 
"We saved some money at least now and deposit in the bank," said Basant.
 
Rita said they have been depositing money in the bank to meet her future needs.
 
Nathun added that what was unique about their bank is the fact that it is owned and managed by beggars who decide on the rules and regulations themselves.
 
The beggars were encouraged to start their own bank by officials of State Society for Ultra Poor and Social Welfare last year.

User

COMMENTS

Gopalakrishnan T V

2 years ago

It is a shame on the nation that after 66 years of independence there are beggars and they have to start their own banks to take care of them. The countrey has numerous scehmes to help the poorest of the poor and this sort of a bank run by beggars for beggars is a reflection and sad commentary that all the schemes meant for poor have not benefited many and begginng continues to be a profession. Icould not believe when some one said that somebody runs a begging industry and the turn over is huge.This news confirms that anything is possible.I also happened to hear a complaint that a beggar who was keen to have an account in a bank was not allowed to open an account as the bank took a stand that beggars cannot be allowed to open account in banks and this had to be sorted out by highlighting and impressing upon the bank that any customer has to be treated as King and the beggar cannot be denied the facility and he is on par with any other deposit Customer.The news is heartening that there are industrious and enterprising people and given an opportunity they will establish themselves.

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)