Nifty, Sensex may remain under pressure due to weakness in foreign markets– Friday closing report

Nifty has to close above 8,280 for a short rally


Today, CNX Nifty managed opening higher and managed staying in the green up to around 11.15am. However it made a gradual move in the red after that and its effort to revive was followed by it being pulled further lower.
S&P BSE Sensex opened at 27,599 and soon hit a high at 27,692 while Nifty opened at 8,302 and hit a high at 8,322. The indices moved lower to hit a low at 27,320 and 8,216. Sensex closed at 27,351 (down 251 points or 0.91%) while Nifty closed at 8,224 (down 69 points or 0.83%). NSE recorded a volume of 76.81 crore shares. India VIX rose 7.67% to close at 13.7525.
The government will release the data on CPI inflation for November 2014 and industrial production data for October 2014 after trading hours today.
Prime Minister's Office yesterday said that India's ambitious economic growth strategy would require a significant enhancement of power generating capacity. India and Russia have decided to fast-track the implementation of agreed cooperation projects between the two countries for nuclear power plants.
Minister of Chemicals and Fertilizers, Ananth Kumar on Thursday said that the government will clear fertilizer subsidy arrears within a month.
The government's total indirect tax collections jumped 19.4% to Rs44,060 crore in November 2014 over November 2013, according to provisional figures released by the finance ministry on Thursday. Total indirect tax collections rose 7.1% to Rs3,28,662 crore during the period April-November 2014 over the corresponding previous year period. This amounts to an achievement of 52.7% of the target fixed at Rs6,23,244 crore in the Union Budget 2014-15 for the current fiscal year.
The Reserve Bank of India (RBI) Governor Raghuram Rajan reportedly said that the central bank will start talks with the government for an appropriate timeline to ensure that the economy is within a medium term inflation target of 2% to 6%.
Maruti Suzuki (1.30%) was the top gainer in Sensex 30 pack. Recently, there were reports which mentioned that it has received 4,141 gypsy vehicles from the Indian Army. BSE has asked for clarification from the company for which a reply is still awaited.
GAIL (4.63%) was the top loser in the Sensex 30 stock. Uttar Pradesh government has agreed to constitute a high power committee to provide single window clearance for construction of Jagdishpur-Haldia gas pipeline. The setting up of the panel will give a "boost to the speedy implementation" of the pipeline that originates in Uttar Pradesh and ends in West Bengal, the company said in a statement.
On Thursday, US indices closed in the green. US retail sales rose 0.7% in November from the previous month. Applications for unemployment insurance benefits declined by 3,000 last week to 2,94,000, the claims have been below 3,00,000 for 12 of the past 13 weeks.
Except for Hang Seng (0.27%) and KLSE Composite (0.66%), all the other Asian indices closed in the green. Nikkei 225 (0.66%) was the top gainer.
Chinese economic data for November released today showed better-than-expected retail sales and weaker-than-expected industrial output. Industrial production rose 7.2% on year in November, below October's 7.7 % rise. Meanwhile, retail sales rose 11.7% on year, up from October's 11.5% rise.
European indices and US Futures were trading deeply in the red.
Germany's wholesale price index fell unexpectedly last month, today's official data showed. In a report, Destatis said that Germany's wholesale price index fell to minus 0.7% in November, from minus 0.6% in the preceding month.


No proposal to ban P-Notes

P-Notes, or offshore derivative instruments, are mostly used by overseas HNIs, hedge funds and other foreign institutions to invest in Indian markets


The government said that it does not propose to ban Participatory Notes (P-Notes), as part of its policy to check inflow of black money.
“There is no proposal at present to remove participatory notes in order to check the generation and laundering of black money,” Minister of State for Finance Jayant Sinha said in a written reply in the Lok Sabha.
P-Notes, or offshore derivative instruments, are mostly used by overseas HNIs, hedge funds and other foreign institutions. This is done when they invest in Indian markets through registered foreign institutional investors (FIIs). It saves on time and costs which are associated with direct registrations.
In a separate reply, Sinha said the total net investments in equity and debt made by FIIs and Foreign Portfolio Investor (FPI) in India between April-November stood at over Rs1.84 lakh crore.
The total investment by FIIs and FPIs in 2013-14 was Rs51,649 crore.
The FPI regime has classified foreign investors into three groups based on their risk profile. This will eventually replace existing categories such as FIIs, their sub-accounts and qualified foreign investors.


Beware of fake pay and park rackets

A Pay and park racket involving railway officials exposed using RTI and Public Grievances


When journalist Anand Mishra of the Asian Age exposed the illegal car parking operator Rajaram Bhaiyalal Jayaswal, many were shocked to find that he was charged with milder sections of the RPF Act.


“In the fiscal year 2012-13, Central Railways (CR) earned Rs3.22 crore while in 2013-14, it earned Rs3.86 crore in lieu of giving its land to private contractors to run a pay-and-park facility,” Mishra had reported.


Mr Purohit who is an active volunteer of Moneylife Foundation's Samir Zaveri Railway Helpline, was quoted as saying that, “It was shocking to find out that the railway police officials at LTT took this scam so casually and imposed very lenient sections. Seeing that the approach of the officers was casual, I finally approached the railway court and now I believe the GRP will investigate the matter seriously.”


Instead of charging the accused under sections 420 (cheating),403 (misappropriation),405 (criminal breach of trust), 465 (forgery),468 (forgery for purpose of cheating),471 (using genuine forged document) and 474 (fraudulent collection), the operator was merely charged with section 144 (Prohibition on hawking) and 145B of Indian railway Act by the RPF officials.


The Railway Protection Force (RPF) is tasked with protecting railway property and prohibiting any trespassing. Shielding the offender is a breach of the code of behaviour under section 11 of the RFP Act. This behaviour of the officials raises various doubts and hints at a possible nexus between RPF and the pay-and-park operators.


The Government Railway Police (GRP) was ordered “to investigate the scam to conduct inquiry and take departmental action against Railway Protection Force (RPF) Personnel for misconduct” by the Bombay High Court on 26 September 2014.


Mr Purohit said, “Public Grievance and RTI works in redressing corrupt and illegal practices in Public Domain. But it takes efforts to bring public grievances to its logical conclusion.” says Mr Purohit.


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