Nifty, Sensex may try to hit new highs but a short decline is overdue– Thursday closing report

After eight days of rally, a decline on the 9th day tomorrow is highly likely


As we mentioned yesterday, the benchmarks today recorded further gain today. After a range bound session where the indices traded mostly in the red, at around 2.10 pm the indices made a sudden upsurge and today again closed at an all-time high. The upmove was supported by the positive data from China.

S&P BSE Sensex opened at 26,189 while CNX Nifty opened at 7,796. After hitting the day’s low at 26,078 and 7,772 the indices moved higher to hit a high at 26,293 and 7,836. Sensex closed at 26,272 (up 125 points or 0.48%) while Nifty closed at 7,831 (up 35 points or 0.45%). The NSE recorded a volume of 83.97 crore shares. India VIX rose 0.20% to close at 14.7200.

Among the other indices on the NSE, the top five gainers were Metal (1.50%), PSU Bank (1.11%), IT (0.91%), FMCG (0.68%) and Realty (0.61%) while the top five losers were Media (0.76%), Smallcap (0.33%), CPSE (0.28%), Energy (0.22%) and Midcap (0.19%).
Of the 50 stocks on the Nifty, 33 ended in the green. The top five gainers were Bank of Baroda (3.50%), Asian Paints (2.81%), HCL Technologies (2.65%), Hindalco (2.61%) and Tata Steel (2.42%). The top five losers were Cairn (6.68%), Gail (1.95%), Power Grid (1.21%), Hero MotoCorp (1.11%) and Dr Reddy (1.08%).

Of the 1,592 companies on the NSE, 762 companies closed in the green, 762 companies closed in the red while 68 companies closed flat.

Union Cabinet has approved the hike in foreign direct investment (FDI) in insurance sector to 49% from 26%. Finance Minister Arun Jaitley had in the Union Budget 2014-15, this month, proposed a hike in FDI in insurance sector to 49% from 26%.

Aluminum-maker Hindalco (2.30%) was the top gainer in the Sensex 30 pack. Today, the stock hit its 52-week high at Rs 198.50 on the BSE, after the aluminium prices hit their highest in more than a year.

Axis Bank, on Wednesday hit its 52-week high, after it posted its June 2014 quarter results. The Bank has posted a net profit of Rs1,666.76 crore for the quarter ended June 2014 as compared to Rs1,408.93 crore for the quarter ended June 2013. Total Income has increased from Rs9,059.12 crore for the quarter ended June 2013 to Rs9,980.47 crore for the quarter ended June 2014. Today the stock was among the top five losers in the Sensex 30 stock.

Today for the third consecutive session, Financial Technologies (10%) came out as a top gainer in ‘A’ group on the BSE. Three PSU banks, Uco Bank (5.83%), Bank of India (4.27%) and Bank of Baroda (3.34%), were among the top six gainers in ‘A’ group on the BSE.

Ipca Lab (13.06%) was the top loser in the ‘A’ group on the BSE. Today, the company communicated that the company's active pharmaceutical ingredients manufacturing facility situated at Ratlam (Madhya Pradesh) has received certain inspection observations from the US FDA. Consequent to this, the company has voluntarily decided to temporarily suspend API shipments from this manufacturing facility for the US market, till this issue is addressed.

US indices closed flat on Wednesday. Except for Nikkei 225 (0.29%) and Seoul Composite (0.08%), all the other Asian indices closed in the green. Shanghai Composite (1.28%) was the top gainer.

A Chinese manufacturing gauge rose to an 18-month high in July, adding to signs that the government will meet its 2014 economic-growth target of about 7.5%. A preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics was at 52, compared with a final reading of 50.7 in June. Numbers above 50 indicate expansion.
South Korea unveiled 11.7 trillion won ($11.4 billion) in government initiatives to help the economy, after growth slumped to the weakest pace in more than a year in the second quarter.

European indices were trading in the green. US Futures too were trading marginally higher.

Euro-area manufacturing and services activity strengthened in July in a sign that a recovery in the 18-nation region is gathering pace. The Purchasing Manager's Index for both industries jumped to 54 from 52.8 in June, matching a three-year high reached in April, London-based Markit Economics said today. It is the 13th month the gauge has exceeded 50, the mark that signals expansion.

German services activity expanded at the fastest pace in three years and manufacturing accelerated, signaling that the economy is recovering from a slowdown in the second quarter. The Purchasing Manager's Index for services jumped to 56.6 in July from 54.6 in June, London-based Markit Economics said today. A factory gauge rose to 52.9 from 52. A reading above 50 indicates expansion.


SEBI orders Remac Realty not to collect money

SEBI has passed an interim order directing Remac Realty not to collect any money from investors from its existing "schemes"/plans or to launch any new "scheme"/plan


SEBI (Securities and Exchange Board of India) has passed an interim order directing Remac Realty India Ltd., and its directors, Partha Pratim Tewari, Arnab Roy, Ganesh Kumar Bagaria, Leena Tewari, Reena Vijay, Sandip Chattopadhyay and Debapratim Mazumder not to collect any money from investors from its existing "schemes"/plans or to launch any new "scheme"/plan; and to immediately submit the full and detailed inventory of the assets owned by the company out of the amounts collected from the "applicants"/investors under its existing "schemes"/plans, according to a release from the regulator.


The company has been ordered not to dispose of any of the properties, or alienate the assets of the existing "schemes"/plans. Further, it shall not divert any funds raised from public at large, kept in bank account(s) and/or in the custody of the company.


SEBI has ordered the company to provide complete information on its investors and their investments in the company to help in the investigation. Also, the company should provide SEBI details of expenditure incurred under the head "Administration Overheads", duly certified by an auditor.


SEBI’s press release says that, “It is alleged that the company is engaged in fund mobilising activity from the public by floating/ sponsoring/ launching 'collective investment scheme' as defined in Section 11AA of the SEBI Act without obtaining a certificate of registration from SEBI.”


SEBI order on Seashore Securities

SEBI orders Seashore Securities not to mobilise funds and not to dispose of any assets


The Securities and Exchange Board of India (SEBI) has ordered Seashore Securities Limited and its promoters and directors including Prashanta Kumar Dash, Pravat Kumar Dash, Jyotirani Sarangi, Surath Das, Shantiprava Dash, Manoj Kumar Nath, Prativa Dash, Sudhanshu Shekhar Pati, Sapna Jena and Gopal Chandra Sahu from mobilising funds through the issue of redeemable preference shares or through the issuance of equity shares or any other securities, to the public and/ or invite subscription, in any manner whatsoever, either directly or indirectly till further directions.


The company is also prohibited from issuing prospectus or any offer document or issue advertisement for soliciting money from the public for the issue of securities, the SEBI Order added.


With respect to funds already mobilised by the company, the SEBI Order is strict and says, the company shall not dispose any of the properties of the said company or alienate the assets acquired/created through the funds raised from public by issuance of the impugned redeemable preference shares. Also, the company shall not divert any funds raised from public at large through the issuance of the impugned cumulative redeemable preference shares, kept in its bank accounts and/or in the custody of the company without prior permission of SEBI.


Finally, according to the SEBI Order, the company is restrained from accessing the securities market and further prohibited from buying, selling or otherwise dealing in securities and being associated with the securities market.


SEBI is continuing its investigation of the company and its directors, and they are obliged to co-operate in providing both information and documents required.


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