Stocks
Nifty, Sensex may try to move higher – Thursday closing report
The first sign of a rally will be a close of Nifty above 7,400
 
We had mentioned in Wednesday’s closing report that Nifty, Sensex continue to be deeply oversold and that the first sign of a short-term Nifty rally would be on a close above 7,400. The major indices in the Indian stock markets ended flat after huge volatility in the day’s trading. The trends in the major indices of the markets during Thursday’s trading are given in the table below:
 
 
Bearish global indices, coupled with a weak rupee and long-liquidation positions pushed down the Indian equity markets on Thursday. This led to major indices of the Indian equity markets to trading flat. The selling pressure led the bellwether indices to trade at levels which were last seen during May-June 2014. Initially, the bellwether indices opened on a positive note due to recovery in the US markets after a huge decline in the opening and also due to higher opening in Asian markets. The US futures were also quoting higher. However, the US futures soon ceded gains and went into negative which led to a sharp decline in all Asian markets including India. 
 
On Wednesday, the foreign institutional investors (FIIs) were net sellers again. According to data with stock exchanges, FIIs divested Rs1,324.69 crore on Wednesday. Besides, caution prevailed over the upcoming US macro-data points of jobless claims and crude oil inventory figures. Nevertheless, markets were able to pare some of their losses on the back of value buying. The positive sentiments were supported after European markets opened in the green.
The S&P BSE market breadth favoured the bulls -- with 1,344 advances and 1,188 declines. While valuations have turned attractive, FIIs continue to remain net sellers which would limit any gains in the market, observed market analysts.
 
After a positive opening, Chinese stocks continued to dive on Thursday, with Shanghai dipping below the 2,900-mark again. The benchmark Shanghai Composite Index lost 3.23% to close at 2,880.48 points. Shenzhen dropped 3.77% to close the day at 9,975.97 points, Xinhua news agency reported. The ChiNext Index, the NASDAQ-style board of growth enterprises, dived 4.18% to close at 2,112.40 points.
 
US stocks recovered from a deep decline in the initial stages of the session as a further decline in oil prices continued to weigh on investor sentiment. The Dow Jones Industrial Average tumbled 249.28 points, or 1.56%, to 15,766.74. The S&P 500 dipped 22.00 points, or 1.17%, to 1,859.33. The Nasdaq Composite Index fell 5.26 points, or 0.12%, to 4,471.69. Oil prices refreshed their multi-year lows on Wednesday, dragged down by a global supply glut. The West Texas Intermediate for February delivery settled at $26.55 a barrel on the New York Mercantile Exchange, its lowest level since May 2003. Investors turned to safe haven assets, such as sovereign bonds and gold, as global stock markets are in full retreat.
 
Aditya Birla Group company UltraTech Cement on Wednesday reported a staggering rise of 36% in its consolidated net profit for the third quarter (Q3) of the current 2015-16 fiscal. According to the company, its profit after tax soared to Rs546 crore from Rs400 crore in the like period of last fiscal. The company's net sales grew by five percent at Rs6,108 crore vis-a-vis Rs5,832 crore in the corresponding period of the previous year. On a standalone basis, the company's net profit rocketed by 39.83% at Rs509 crore from Rs364 crore earned during the like period of last fiscal. The net sales during the quarter under review rose by 4.71% at Rs5,747 crore as compared to Rs5,488 crore in the corresponding period of the previous year. In its outlook the company noted that the demand for cement is expected to pick up in the near term. "The governments' focus on infrastructure development, housing sector, smart cities, roads etc., augurs well for UltraTech," the company said in a statement. "The company is confident of meeting the upsurge in demand and participating proactively in the next phase of growth in the country." The company’s shares closed at Rs2,695.00, up 2.66% on the BSE.
 
Axis Bank on Wednesday said it posted a net profit of Rs2,175.3 crore for the quarter ending December 2015. The bank’s net profit (for the third quarter of 2015-16) increased by 14.5%, a rise of Rs275.54 crore. It posted a net profit of Rs1,899.76 crore in the year ago quarter. According to the unaudited financial results posted on the Bombay Stock Exchange (BSE), total income for the bank rose to Rs12,531.11 crore in Q3 2015-16 against Rs10,928.81 crore clocked in Q3 2014-15. The bank’s shares closed at Rs408.90, up 5.21% on the BSE.
 
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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COMMENTS

LALIT SHAH

1 year ago

Most of so-called experts talking recovery like 2008-2009. But as per my experience of 45 years in market and expertise in technical reading says we are entering in long-term bear market and market will bottom out until march end
All so-called quality stocks are costly avoid is better option
Only selected midcaps and smallcaps will yeild investors in long-term.

What Ails Healthcare Services in Mumbai? - Part 3
Mumbai is a startling example to prove that the best health is provided- not by hospitals and modern equipment, but by simple means such as hygiene, de-congestion, clean water and nutritious food, along with a pollution-free atmosphere and a stress-free peaceful society. This is the concluding part of a three part series
 
The biggest hindrance to the three-pronged plan, I proposed in my previous article  is the Consumer Protection Act made applicable to the medical profession. Almost 100% of the doctors are unwilling to take any risks, lest they are sued or punished or even assaulted by the mob. The Act does not protect patients from negligent management by doctors; it is punishment to patients themselves who now pay through their nose to get paltry treatment. It also destroys the faith between doctor and patient and is mainly responsible for self-protecting practices of the present generation. Unfortunately, most non-governmental organisations (NGOs) and several activists strongly believe that such ‘punitive’ action is necessary. Not all but more socially oriented doctors will definitely work better for their patients- if only this law is repealed.
 
The city needs more beds. Lack of space and money are the biggest obstacles. The present small hospitals and nursing homes are managed most wastefully- the manpower and equipment are not used even to 30% extent. The problem could be solved by public-private participation (PPP). 
 
The Government or Municipal Corporation could build the suitable hospitals for joint practice and community primary centres as shown below. A community primary centre and a 30-bedded hospital for joint practice per 20,000 to 25,000 population and give it on rental basis to groups of doctors with specified controls on pattern of charges. The charges will work out to be quite affordable in such centres. The development plan for the city should have mandatory provision for such centres and hospitals. Universal health coverage is ideal but cannot be achieved till every citizen is made to pay a certain percentage of his salary/income for health services.  In my opinion, UHC through taxation money is a myth.
 
 
 
Lastly, we must become cost conscious. Anything can be done with money but money is not easy to get. Social activists must propose and struggle for facilities within the financial capacity of the community or the State. Highest productivity is the term to be emphasized. They can certainly point out the discriminations and unjust practices in the management but must advocate facilities within the capacity of the community. Politicians take advantage of the very demand of the people and dump costly modern technology on our heads – not much relief but extra-ordinarily high costs. 
 
If proof was necessary, Mumbai is a startling example to prove that the best health is provided- not by hospitals and modernity, it is by simple other means such as hygiene, de-congestion, clean water and nutritious food, along with a pollution free atmosphere and a stress-free peaceful society. The contribution of the state towards primary health care and at least 50% of the health expenditure helps a lot. Bhutan has two doctors per 10,000 people but is declared a happy and healthy country. Thailand has 3 to 5 doctors per 10,000 population but a good system and they live up to 72 years. Similarly, Sri Lanka also has 5 to 3 doctors for every 10,000 citizens but life expectancy there is 72-73 years. On the other hand, it is difficult to show a city with more pollution and more stress than Mumbai (Delhi excluded) and not all medical advances and numbers of doctors’ help.
 
Do post your views in the comment section below so that we can have meaningful discussion
 
 
You may also want to read…
 
 
(Dr Sadanand Nadkarni, is former Dean of Lokmanya Tilak Municipal Medical College (Sion Hospital), author of several books, a serious thinker of medical issues and hugely respected for a series of path-breaking ideas on improving the delivery of medical services to the aam aadmi. His book “Management of the Sick Healthcare System” is among the first to speak out about medical malpractice and other issues.)

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COMMENTS

S A Narayan

1 year ago

A good article on health care ; but its from the point of view of providing medical services. This is required after people fall sick. But if we want to improve health indices of a population, we have to look at preventive aspects, for which i am not sure if sufficient funds or even supervisory attention is given. For example if malaria prevention is rigorously monitored, by municipal and preventive health workers and monitored on a daily basis, its occurence can be greatly minimised. Similarly extensive street cleaning , garbage collection and vigorous and punitive monitoring of municipal street sweepers will largely eliminate unhygienic public areas and rodent menace; better laying of roads and correct gradients in street design , will ensure no water logging and street puddles,avoiding mosquito breeding, stringent air monitoring by pollution control agencies and exemplary punitive action against defaulters, building public awareness against bonfires and garbage burning by local municipality, better greening of roads(main and side roads), growing turf on mud patches along kerbs, encouraging physical exercise and yoga practices by the citizens, including conducting free camps etc by the local bodies as promoting healthy living, stringent quality measures on hotels and street vendors etc would go a long way in promoting better health for the citizens and hence lesser load on the health care systems in the city. Essentially therefore an integrated approach for executing all civic services with a missionary zeal and maybe under the control and accountability of a City CEO, with wide financial and executive powers, could make a difference!

“Are we getting reduced to a police state?” Delhi HC asks tax authorities
The tax authorities arrested a senior official of MakeMyTrip without even issuing a show cause notice for alleged evasion of service tax of Rs67.4 crore. The High Court remarked, we are getting reduced to a police state
 
The Delhi High Court has asked the Central government to file a reply on a petition filed by travel booking services provider MakeMyTrip India in a matter related with the arrest of a company officer for not depositing service tax in the treasury. The Court also directed the tax authorities not to take any coercive action against the company or its officials, says a report from Bar & Bench .
 
As per the report, the Division Bench of Justice S Murlidhar and Justice Vibhu Bakhru also stated in their order that the relevant documents, which prove tax evasion of the company shall be presented in court on the next date of hearing.
 
The matter is related with the arrest of a senior official of MakeMyTrip for alleged evasion of service tax of Rs67.44 crore. The official was released on bail on 11 January 2016, three days after his arrest.
 
The Directorate General of Central Excise Intelligence (DGCEI), which had registered a case against the company, had alleged that MakeMyTrip failed to deposit service tax in government treasury, despite collecting the same from its customers. 
 
According to the report, MakeMyTrip counsel V Lakshmikumaran, argued that arrest of the official was an example of a 'police state' because the company had not been collecting money for its own purposes. "The DGCEI has claimed that we are not paying service tax to the Government which we collect from our customers. So the charge against me is that the company have not paid service tax amounting to crores. But my submission is that the hotels that have partnered with us (the company), are liable to pay service tax to the Government and not me (the company). I (the company) have not collected any money as tax that has been deposited for my (the company) benefit. They have also not issued any show cause notice me (the company) before arresting the official,” the Counsel was quoted as saying in the news report.
 
Lakshmikumaran also informed the Court that MakeMyTrip had already deposited Rs40 crore towards its service tax liability since the arrest of its official. 
 
Satish Agarwala, the counsel for the tax department informed the Court that since investigation in this matter ongoing, no show cause notice was issued. 
 
This submission, however did not sit well with the Bench, which reprimanded the tax department for proceeding to arrest a person in the absence of any legal proof of liability, the report says.
 
Quoting Justice Murlidhar, the report from Bar & Bench, says, “No show cause notice, not even a scrap of paper to show that he owes Rs67 crore to you. This is a remarkable way of collecting taxes. Do you have any document to prove his liability? Now, even without a notice you have collected Rs40 crore. We are getting reduced to a police state, that is what is happening."
 
Since no person could be arrested without a show cause notice on an allegation squarely covered under Section 73A of the Service Tax Act, the Bench also asked the tax department counsel if the arrest of MakeMyTrip official was legal.
 
When Adv Agarwala responded that an arrest could be made as per the said provisions, Justice Bakhru had reportedly said that it was up to the Court to decide as to what was the requirement for issuing a show cause notice according to the Act.
 
“You file your reply and till that time, your department will not take any coercive steps. As the law stands, you cannot enter a person’s house and arrest them because you feel that they have something wrong. This will not happen under our watch,” the Bench was quoted in the news report.
 
Further hearing of the matter is scheduled for next week and the tax authorities have been asked to submit its reply by that time.

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COMMENTS

Dahyabhai S Patel

1 year ago

Will the severe action ( heavy fine and jail) be taken against the wrong doers from the Government side if they are proved guilty?!

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