Stocks
Nifty, Sensex may rally - Weekly closing report

Nifty must stay above 7,700 to go higher

 

We had mentioned in last week’s closing report that Nifty, Sensex may rally and that If Nifty stays above 7,700, it may rally up to 8,100. During the week’s trading, the Sensex and the Nifty gained 1%+ and the Bank Nifty made a marginal loss. Clearly, the market has been moving sideways on a weekly basis and is not able to rally.

 

 

The Indian equity markets opened on a lower note on Monday, following a sharp downward revision of Chinese industrial profits. Observers pointed out that negative Asian market cues coupled with anxiety over the upcoming monetary policy review kept the Indian markets subdued. 
 
The RBI (Reserve Bank of India) on Tuesday cut repo rate (the rate at which the RBI lends money to banks) by 50 basis points to 6.75% from 7.25%. At the same time, the central bank has made a pitch for passing the rate cut to consumers in the form of cheaper personal and commercial credit.  The cash reserve ratio (CRR) has been kept unchanged at 4%. However, the market which was clamouring for a rate cut was surprisingly ambivalent about it after it actually got one. Fears of bank's ability to transmit the easing of monetary policy kept the bellwether indices subdued. The indices had opened deeply in the red, following a huge decline in US markets on Monday night and Asian markets on Tuesday morning. After the rate cut, the equity indices staged a recovery on the back of an unexpectedly high interest rate cut, but strong selling took over later in the last half hour on Tuesday.
 
On Wednesday, with global cues from Asian markets being favourable, and Tuesday’s RBI rate cut in the hand, there was a rally in the main stock indices, leading to the major indices closing with gains of more than 1%. Analysts cited that more than expected monetary easing coupled with a dovish outlook by the country's central bank, strengthening rupee value and stable Asian bourses supported the Indian markets. However, Bank Nifty struggled to rally.
 
Furthermore, the Supreme Court's verdict in favour of Mauritius-based foreign fund Castleton Investment offered more clarity over the applicability of minimum alternate tax (MAT) on foreign portfolio investors (FPIs). The verdict is expected to restore FPIs' confidence in the Indian markets and smoothen the nerves of anxious investors. The government has already accepted the Justice A.P. Shah Committee's report on MAT that says the levy should not be applicable on FPIs.
 
On Thursday, the markets made healthy gains within minutes of opening and continued their upward trajectory on the back of Tuesday's monetary easing by the RBI, overnight rally in the US markets, supportive Asian markets and strengthening rupee value. However, the upward momentum lost its steam as the latest Nikkei India Manufacturing PMI (Purchasing Manufacturers Index) for the last month showed a contraction. The PMI was at a seven-month low of 51.2 in September 2015. Markets analysts said the less-than-expected PMI data impacted sentiments and erased the gains made during Thursday's trade, as profit booking was also witnessed. The Indian markets remained closed on Friday on account of Gandhi Jayanti.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 
 

 

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Manohar set to be named BCCI chief at Sunday's SGM
Former president Shashank Manohar has emerged as the sole candidate to be elected to the top post of the Board of Control for Cricket in India (BCCI), which has fallen vacant with the demise of Jagmohan Dalmiya, in the Special General Meeting (SGM) to be held here on Sunday.
 
The chair has been lying vacant since Dalmiya died in Kolkata on September 20. As per BCCI's constitution, a notification for a SGM to nominate a successor has to be issued within 15 days of the incumbent's death.
 
BCCI secretary Anurag Thakur said Manohar is the only candidate for the top post.
 
A SGM will be held here on Sunday where a decision regarding the vacant chair will be taken. Manohar, a lawyer by profession, earlier held the post from 2008 to 2011.
 
"Shashank Manohar is the only candidate for the BCCI president's post. A decision regarding it will be taken in BCCI's SGM in Mumbai on October 4," Thakur had said on the sidelines of the T20 practice match between India A and the visiting South African team in New Delhi on September 29.
 
Manohar emerged as a consensus candidate among East Zone units whose turn it is to nominate a president till 2017. Any candidate for the BCCI top job will need a proposer from the eastern region.
 
It was earlier believed the Tripura Cricket Association or National Cricket Club will propose Manohar's candidature. But it is now believed former Indian skipper Sourav Ganguly, who succeeded Dalmiya as the new Cricket Association of Bengal (CAB) president, is likely to propose Manohar's name for the post.
 
But Ganguly dodged all questions in a recent event when he was asked if he would support and recommend Manohar’s name for the top post.
 
Manohar is known to be close to former BCCI and International Cricket Council (ICC) chief Sharad Pawar. The senior lawyer has Pawar's backing and after Indian Premier League (IPL) chief Rajiv Shukla opted out of the race, he is likely to be supported by Anurag Thakur as well.
 
Jharkhand Cricket Association (JCA) chief Amitabh Choudhary had emerged as a possible candidate earlier, but his chances slimmed considerably as the Sharad Pawar and Anurag Thakur factions wanted their man at the top.
 
Manohar is unlikely to face any rival since the faction led by ex-BCCI chief N. Srinivasan doesn't have the majority among 29 votes to counter the former's candidature.
 
Srinivasan is ineligible to attend the meeting on Sunday but he can cast his vote at the SGM in the scenario of an election.
 
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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FWICE strike affects shooting of 'Bajirao Mastani', Aamir Khan's film
With the strike by the FWICE -- Federation of Western Indian Cine Employees, the mother-body of the several unions of industry workers - effective from Saturday, shooting of the forthcoming film “BajiRao Mastani” and actor Aamir Khan's film have stalled in addition to several TV shows.
 
According to the B.N. Tiwari, the President of The Sound Association of India, the whole film city is a part of the strike involving all 22 associations like Indian Film & Television Directors' Association (IFTDA), Association of Film & TV Editors, Cine Costume & Make-up Artist and Hair Dresser Association, Film Writers' Association.
 
“The whole film city is a part of this strike, all 22 associations. We have closed the gates of the film city, the police is here and the protests are going on. 
 
"'BajiRao Mastani' shoot has also stalled and many have stopped the shoot themselves like filmmaker Rohit Shetty has stopped the shoot of his film in Chennai, a film shoot involving Aamir Khan has stopped for two days...everybody is in support,” Tiwari told IANS over phone.
 
FWICE along with Cine and Television Artistes Association went on strike demanding better wages and improved working conditions.
 
Sharing that the strike is effective pan-India, Tiwari shared that shooting will not take place anywhere in the country. 
 
The high court has ordered the association to stay away from the venues where the shoots are still taking place, keeping a distance of 150 km radius to be precise.
 
“The high court has ordered that for 15 days, wherever the shooting is taking place, we have to be at least 150 km radius away from the vicinity. There are a few shootings going on today, but tomorrow they won't,” he said.
 
The tussle between Producers Association and FWICE is going on since February when the memorandum of understanding (MoU) expired and both the parties couldn't agree to a renewal.
 
“The negotiations with the producers is on. The legal advisers are working on the paper work for the Memorandum of Understanding (MoU)... Our representatives are in talks with the Producer's association,” Tiwari said.
 
“If we close down even for a single day, it is equivalent to a loss of 100 crores! We cannot afford a strike for very long, so the producers have to wrap it up as soon as possible. I t should be over in 2-4 days max. The process of MoU is a little lengthy, everything needs to be in place, once it is signed then this one day problem will be solved for the next five years,” he added.
 
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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