Nifty, Sensex may resume downtrend – Thursday closing report

Only a close above 8,450 in Nifty may negate the downward bias


We had mentioned in Wednesday’s closing report that the indices are headed lower.


Today, the bourses witnessed an indecisive move. The Sensex opened at 28,101 while Nifty opened at 8,407. Sensex moved in the range of 27,915 and 28,119 and closed at 28,068 (up 35 points or 0.12%). Nifty moved between 8,353 and 8,411 and closed at 8,402 (up 20 points or 0.23%). NSE recorded a volume of 81.70 crore shares. India VIX fell 1.25% to close at 14.1650. The indices are still in a short downtrend which started yesterday.

The Ministry of Coal on Wednesday placed in public domain the draft rules for auction/allocation of 204 coal blocks cancelled by the Supreme Court in September this year. The draft rules provide the process of allocation through auction and allotment. The coal ministry has invited comments on the draft rules for auction/allocation of coal blocks from the public and stakeholders. The comments and suggestions can be sent by 24 November 2014, the coal ministry said.

Finance Minister Arun Jaitley met government bank heads and discussed ways to bring down Non-Performing Assets (NPAs). Jaitley also asked banks to take steps to ensure smooth credit flow to projects.

Bajaj Holdings & Investment (7.77%) was the top gainer in ‘A’ group on the BSE. The stock also hit its 52-week high today.

Kotak Mahindra Bank (7.28%) was among the top three gainers in ‘A’ group on the BSE.


The stock also hit its 52-week high today. The exchange has sought clarification from it with respect to the media report appearing titled "Kotak Bank may merge ING VYSYA with itself in the ratio 2:2.5, Deal likely to close within one month". The response from the bank is awaited.

Rasoya Proteins (9.95%) was again the top loser in ‘A’ group on the BSE. Amara Raja Batteries (6.22%) was among the top two losers in the group. The stock hit its 52-week high on Wednesday.

Cipla (3.23%) was the top gainer in Sensex 30 pack. Cipla today announced an agreement with Serum Institute of India for distribution of paediatric vaccines in Europe.


As per the agreement, Serum Institute of India will develop and manufacture paediatric vaccines and Cipla will seek European Medicines Agency approval and market the products in Europe. Sesa Sterlite (2.33%) was among the top losers in Sensex 30 stock.

On Wednesday, US indices closed marginally in the red. The minutes of the US central bank's October 28-29 meeting gave investors few new clues as to when US interest rates may rise.

Asian indices showed mixed closing. Taiwan Weighted (1.29%) was the top gainer while Jakarta Composite (0.67%) was the top loser. The China flash HSBC/Markit manufacturing purchasing managers' index published on Thursday showed factory output contracted in the world's third-biggest economy for the first time in six months.


The preliminary HSBC China Manufacturing Purchasing Managers Index fell to 50.0 in November, compared with a final reading of 50.4 in October, HSBC Holdings PLC said Thursday.

European indices were trading in the red. US Futures too were trading lower. France's manufacturing PMI survey missed expectations. The preliminary Markit France Manufacturing purchasing managers' index (PMI) for November fell to 47.6 - a three-month low - down from 48.5 in October. The Services sector gave a slightly better reading than expected - 48.8, up from 48.3 in October and this helped to lift the overall composite PMI to 48.4 from 48.2 last month.

Germany's private sector has grown at the slowest rate in 16 months in November.


Markit's flash composite Purchasing Managers' Index (PMI), which tracks growth in the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 52.1 in November from 53.9 in October, marking a 16-month low.


SC asks CBI director Sinha to recuse himself from the 2G case

While refusing to elaborate reasons as it may tarnish reputation of CBI, the apex court directed senior most officer in the 2G probe team to takeover role of Sinha in the case


The Supreme Court on Thursday directed Ranjit Sinha, director of Central Bureau of Investigation (CBI) to keep himself away from the probe of 2G scam case.


While refusing to elaborate reasons as it may tarnish reputation of CBI, the apex court said, "Senior-most officer in the investigating team of the 2G scam will take over the role of CBI Director in the case."


Reacting on the Court direction, Dr Subramanian Swamy from Bharatiya Janata Party (BJP) said, CBI chief Sinha must step down on moral grounds before his due retirement date.


Earlier, Special Public Prosecutor Anand Grover todl the Court that Sinha had interfered in the 2G case, which is completely inconsistent with the agency's stand.


"Our case in 2G could have been demolished, if Sinha's stand was accepted," Grover told the highest court.


The SC also said that shifting Santosh Rastogi from 2G probe was overreach of its order.


The apex court also took strong exception to CBI officers present in the court room, directing them to leave and "do their duty" in office.


Fadnavis govt to wait for GST before scrapping LBT in Maharashtra

Scrapping of LBT was featuring prominently in BJP's poll manifesto for the recently concluded Assembly elections and yet Maharashtra government now want GST to be introduced first


The Maharashtra government is unlikely to scrap the local body tax (LBT) unless the union government introduces the goods and services tax (GST). However, scrapping of LBT was featuring prominently in BJP's poll manifesto for the recently concluded state Assembly elections.


"Yes, we did include scrapping of LBT and thereby bring cheer to traders in our poll manifesto. We remain committed towards fulfilling our promise. But at the same time how can we ignore the current financial condition of the state," state Finance Minister Sudhir Mungantiwar told reporters.


He added that Maharashtra, which was once considered to be a financially sound state, is now reeling under a debt of Rs3.44 lakh crore. When the situation is so bad, shouldn't it be priority (of the government) to improve the fiscal condition of the state, he added.


Traders across the state have been demanding to scrap the LBT for some time and also held protests.


"We have the LBT and the octroi which is providing a revenue of Rs14,500 crore to the exchequer annually. When we abolish these revenue sources, we need to find out an alternate source of revenue generation first," Mungantiwar added.


He said the Centre is keen to implement the GST from 2016 and reimburse the state with the difference in the revenue once it is implemented here.


Chief Minister Devendra Fadnavis said, "Say if we manage to collect only Rs8,000 crore from GST, the Centre will provide us with the remaining Rs6,500 crore so that we get the same revenue as we currently get from octroi and LBT."


"We have two options before us. Either we increase our tax collection by coming out with an alternative to LBT and octroi, or we wait for a year till GST will be introduced. I will explain the technical problems to the trade Union and try to convince them to wait for a year till we introduce GST," he said.


Mungantiwar echoed Fadnavis's views and said the state may consider postponing the scrapping of LBT and Octroi by a year.


Fadnavis has also called a meeting of traders after which he may announce his decision on LBT.


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