Stocks
Nifty, Sensex may remain weak – Monday closing report
We had wondered last week whether the bulls could take Nifty, Sensex higher. The major indices of the Indian stock markets were listless in Monday’s trading and at the close of trading the indices ended flat. The trends of the major indices in the course of Monday’s trading are given in the table below:
 
 
Initially, the benchmark indices opened higher following firm global cues and expectations of the Goods and Services Tax (GST) bill passing in the monsoon session of parliament on Monday. The markets were mainly moved by healthy expectations out of quarterly results which are to be announced later during Monday. Heavy selling pressure was witnessed in telecom, oil and gas and metal stocks. Some movement was noticed in the state-owned banks, especially State Bank of India's subsidiary banks. Expectations of the government's announcement of the next round of capital infusion in state-run banks, for which Rs25,000 crore has been earmarked for the current fiscal boosted investors' sentiments. On the NSE, there were 603 advances, 1007 declines and 55 unchanged.
 
Glenmark Pharmaceuticals Ltd is planning to raise $200 million by issuing USD denominated non-convertible unsecured bonds to repay existing debt, the company said on Monday. "..subsequent to the rating received by the leading credit agencies in the world that is Standard & Poor's and Fitch, the company has decided to tap into the international bond market and is planning to raise around $200 million by issuing USD denominated non-convertible unsecured bonds," the company said in a filing to Bombay Stock Exchange. "The net proceeds will be used for repaying the existing debt," it said. Glenmark shares closed at Rs833.80, down 2.12%, on the BSE.
 
Sun Pharmaceutical group on Monday announced the licensing of ELEPSIA XR drug by Sun Pharma Advanced Research Company Ltd (SPARC) to a subsidiary of Sun Pharmaceutical Industries Ltd for the US market. In a statement, Sun Pharma said SPARC will licence ELEPSIA XR (Levetiracetam Extended Release tablets) to a wholly-owned subsidiary for the US market. SPARC will receive an up-front payment of $10 million from Sun Pharma apart from certain additional milestone payments and defined royalties linked to any future sales of ELEPSIA XR. According to Sun Pharma, ELEPSIA-XR was approved by US Food and Drug Administration (USFDA) in March 2015. Sun Pharma shares closed at Rs776.65, up 0.81% on the BSE. SPARC shares closed at Rs355.05, up 1.54% on the BSE.
 
Reserve Bank of India Governor Raghuram Rajan on Monday called for manageable and sustainable credit expansion in the country, saying all avenues for this should be explored. Rajan underlined the need for building new institutions in rural areas to ease access to credit. He was also in favour of exploring the possibility of banks working with money lenders while addressing concerns associated with such an arrangement. He was speaking at the national seminar on 'equity, access and inclusion -- transforming rural India through financial inclusion' at the National Institute of Rural Development.  During the question-answer session after his inaugural address, Rajan said as credit to GDP ratio is about 50% "which is significantly below where it could be even for an emerging market". The RBI governor pointed out that a number of emerging markets have credit to GDP ratios of 100% to 120%. China is closer to 150%. "We need to find ways to expand credit without the over indebtedness, the over borrowing as well as the pains associated with it. We are working on different ways to do it," he said. If this takes off, it could be favourable to the public sector banks and the Bank Nifty closed at 18,923.40, down 01.6%.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 

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DGCA issues new directions for fast refund, compensations to air passengers
The Ministry of Civil Aviation headed by Ashok Gajapathi Raju has asked airlines to pay air passengers compensation of up to Rs10,000 plus ticket fare for cancellations where no alternate is arranged within two hours of the original scheduled departure. In case, the passenger is denied boarding due to over booking, the carrier will have to pay a compensation of up to 400% of the fare, as per the new guidelines issued by the Ministry. These guidelines will be implemented from 1st August.
 
In a series of tweets, the Minister, says, "To protect passenger rights for delayed, overbooked and cancelled flights, we have issued new directions with effect from 1st August." 
 
 
 
"As the distinction between the scheduled and non-scheduled services is reducing, such protections shall be provided to passengers travelling not only on scheduled flights but also on non-scheduled flights and foreign carriers operating to and from India. In order to ensure effective application of this civil aviation requirements (CAR), the obligation of compliance shall rest with the airline which performs or intends to perform the flight in question whether with its own aircraft, aircraft under dry or wet lease or on any other basis subject to the conditions laid down," the circular says.
 
 
In case of cancellation of flight, the airlines are mandated to inform the traveller, at least two weeks before the scheduled time of departure and arrange alternate flight or refund as acceptable to the passenger. It says, "In case the passengers are informed of the cancellation less than two weeks before and up to 24 hours of the scheduled time of departure, the airline shall offer alternate flight allowing them to depart within two hours of their booked scheduled time of departure."
 
Passengers who have not been informed the airlines are asked to provide compensation in addition to the refund of air ticket.
 
 
However, to avail the refunds or compensation, the passengers are required to provide adequate contact information while booking the tickets.
 
For flights delays, the carriers will have to provide facilities like meals, refreshments or hotel accommodation as per requirement. 
 
 
"When affected by denied boarding, a cancellation or a long delay, the passenger may complain directly to the airline in the event the airline has not provided the compensation and/or reasonable facilities as specified in this CAR. If the airlines fail to fulfil their obligations, the passenger may complain to the statutory bodies set up under relevant applicable laws," the revised circular issued by DGCA says.

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Navjot Sidhu likely to be AAP's chief ministerial face in Punjab
On a day when AAP national convener Arvind Kejriwal was seeking penance at the holiest of Sikh shrines, the Harmandir Sahib in Amritsar, a political drama was unfolding in New Delhi that could change the course of Punjab politics ahead of the state assembly elections.
 
The resignation of popular cricketer-turned-politician Navjot Singh Sidhu from the Rajya Sabha less than three months after he was nominated to the Upper House of parliament by the BJP government at the Centre has opened up the political scenario in Punjab once again.
 
With a senior AAP leader confirming that Sidhu and his wife Navjot Kaur Sidhu -- a Punjab BJP legislator who is also the chief parliamentary secretary (just below a minister) in the Punjab government -- were all set to join the Aam Aadmi Party before the assembly polls, the sudden resignation of the BJP MP has cleared a lot of things.
 
The AAP, which is posing a serious challenge to the ruling Shiromani Akali Dal and the opposition Congress in Punjab ahead of assembly polls, due nearly next year, could well be on course to crown Sidhu as its chief ministerial candidate.
 
The AAP's confidence in Punjab is not misplaced. It was Punjab's electorate which gave entry to the AAP in the Lok Sabha in the 2014 elections. The party won four Lok Sabha seats -- all from Punjab, which has a total of 13 in the lower house.
 
Sidhu, three-time Lok Sabha member from Amritsar, had been slighted by the ruling dispensation in Punjab -- the Shiromani Akali Dal and its alliance partner Bharatiya Janata Party (BJP) -- in the past few years.
 
The Sidhu couple has been critical of the Akali Dal-BJP alliance government in Punjab headed by the country's oldest Chief Minister, Parkash Singh Badal.
 
A popular Jat-Sikh face, Sidhu paid the price of his run-ins with Punjab's dominant Badal family. He had verbal duels with the Chief Minister, Deputy Chief Minister Sukhbir Badal and his powerful brother-in-law Bikram Majithia, who is the younger brother of Union Food Processing Minister Harsimrat Kaur Badal.
 
In recent months, political grapevine had it that Sidhu was in talks with the AAP and even the Congress. There was no strong denial or confirmation of this from any side. But the BJP put the speculation to rest by nominating the chirpy Sidhu, who is a popular TV celebrity and cricket commentator, to the Rajya Sabha.
 
In the AAP's scheme of things, Sidhu fits the bill quite well. He is known as an honest and upright political leader, is outspoken, has a popular appeal, connects well through his speeches and is a Jat-Sikh face -- all ingredients for a good chief ministerial candidate in Punjab.
 
Having ridden piggy-back to power with the Shiromani Akali Dal since 2007, the Punjab state BJP has resigned itself to playing second fiddle to the Akalis.
 
As Punjab's political scene is heating up for the assembly polls, everyone knows that the state is headed for a triangular showdown among the Akali Dal, Congress and the AAP. The BJP is nowhere as a standalone entity.
 
The problem for the BJP in Punjab is that it is led by a bunch of leaders who have little or no standing in state politics, leave alone having any recognition at the national level.
 
The party leadership, in the past few years, deliberately chose to ignore and even embarrass its best known face in the state, the thrice-elected Lok Sabha member Navjot Singh Sidhu. 
 
In the 2014 general elections, the BJP chose to dump Sidhu and fielded Arun Jaitley, now the powerful Finance Minister in the Modi government.
 
Jaitley, pitted against Congress stalwart and former Punjab Chief Minister Amarinder Singh, lost badly by a margin of over one lakh votes. This was Jaitley's maiden foray into popular electoral politics and he started with a big loss. 
 
Sidhu had refused to campaign for Jaitley, whom he called his political mentor.
 
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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