Nifty’s first support is at 7,950 and the second one at 7,900.
Against our anticipation, the Indian stock market closed lower on Tuesday, in line with most of the other Asian markets. Weak data from the US played negatively on market sentiments. Except for the few minutes during the morning session when the Indian benchmarks traded in the positive, it remained weak for the rest of the session, especially with big selling coming in the afternoon session.
While S&P BSE Sensex opened marginally higher at 27,245, NSE's CNX Nifty opened lower at 8,144. Sensex moved lower from 27,257 to 26,744 and closed little above the day’s low at 26,776 (down 431 points or 1.58%). Nifty hit a low of 8,008 after hitting a high of 8,160. The NSE's 50-stock index closed at 8,018 (down 129 points or 1.58%). NSE recorded a volume of 98.40 crore shares. India VIX rose 7.31% to close at 12.4100.
All the other indices on the NSE closed in the red. The top five losers were Realty (5.31%), CPSE (2.84%), Nifty Midcap 50 (2.69%), Smallcap (2.62%) and PSU Bank (2.46%).
Of the 50 stocks on the Nifty, six ended in the green. The top five gainers were HCL Technologies (1.22%), Wipro (0.70%), NTPC (0.40%), Tech Mahindra (0.11%) and Ambuja Cements (0.07%). The top five losers were DLF (6.75%), Cipla (4.36%), Tata Motors (3.94%), Tata Steel (3.44%) and Asian Paints (3.11%).
Of the 1,615 companies on the NSE, 313 companies closed in the green, 1,255 companies closed in the red while 47 companies closed flat.
In a newspaper interview published on Tuesday, Food Minister Ram Vilas Paswan was quoted as saying that the monthly entitlement of 5 kg foodgrain per person under food security law was meagre and that the government intends to increase the monthly entitlement to 7 kg. However, later in the day, it was clarified that the union government has no plans to raise subsidised foodgrain allocations from 5kg to 7kg per person a month.
Syndicate Bank on Tuesday terminated the services of its suspended chairman and managing director Sudhir Kumar Jain with immediate effect, a day after a court extended his police custody till Tuesday. Jain was arrested last month by the Central Bureau of Investigation on charges of accepting bribes from Bhushan Steel.
Department of Pharmaceuticals, under the Ministry of Chemicals and Fertilizers, scrapped guidelines issued on 29 May 2014 that gave the National Pharmaceutical Pricing Authority (NPPA) the powers to fix the prices of drugs that are not on the essential medicines list. GlaxoSmithKline Pharmaceuticals (1.70%) was the top gainer in ‘A’ group on the BSE. While Cipla (4.65%) which was the top loser in the Sensex 30 stock on Monday, continued to be the top loser today as well.
Delhi government has reportedly announced upto 20% increase in circle rates effective Tuesday. The circle rates are minimum rates below which a property cannot be registered. It forms the basis of stamp duty and registration charges for property. Circle rates, introduced in 2007, are revised periodically. In Delhi, these rates were last revised in November 2012, when the rates were hiked by 200%. Unitech (10.77%) was the top loser in the ‘A’ group on the BSE.
NTPC (0.18%) was the top gainer in Sensex 30 pack. There is news that the company is exploring inorganic routes to increase its foothold in power sector.
US indices closed in the negative on Monday. The latest housing data came in much weaker than expected. Existing home sales in US fell 1.8% in August, far less than estimates.
Except for Shanghai Composite (0.87%), NZSE 50 (0.10%) and Straits Times (0.05%) all the other trading Asian indices closed in the negative. Jakarta Composite (0.61%) was the top loser.
A Chinese manufacturing gauge unexpectedly increased this month, suggesting export demand is helping the economy withstand a property slump. The preliminary Purchasing Managers' Index from HSBC Holdings Plc and Markit Economics was at 50.5, up from August's final reading of 50.2.
European indices were trading in the red while US Futures too were trading lower.
The latest flash PMI data from Markit Economics today indicated a fifth consecutive monthly decline in French private sector output during September. At 49.1, down from 49.5 in August, the seasonally adjusted Markit Flash France Composite Output Index, based on around 85% of normal monthly survey replies, was at its lowest level in three months, albeit signalling a marginal rate of contraction. Flash manufacturing PMI climbed to a 4-month high of 48.8 in September, from 46.9 in August. Service sector activity fell for the first time in three months during September, offsetting a slower decline in manufacturing output, the latest data showed.
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A dealer of BMW from Ernakulam was asked to refund Rs28,000 collected as handling charges and also pay Rs10,000 for causing mental agony to the customer
The Ernakulam Consumer Dispute Redressal Forum has asked Platino Classic Motors India Pvt Ltd, authorised dealer of BMW to refund Rs28,000 collected as incidental charges for transporting vehicles from the manufacturer’s yard to the showroom.
According to a report from New Indian Express, one Thomas Varghese Oommen of Pathanamthitta had filed complaint against the car dealer for charging Rs28,000 from his as handling expenses for buying a BMW 520D for Rs38.83 lakh.
During the hearing, Platino Classic Motors argued that Oommen had agreed to pay incidental charges. However, the Forum asked the dealer, if it is legally entitled to collect handling charges from customers in addition the price and other statutory charges paid by the customer.
“The opposite parties miserably failed to explain how the handling charges were legally valid. The dealer has made the charges look like government levy. If it is not under the the Motor Vehicles Act-1988, how can the dealer collect the additional charges, when they are not entitled to do so,” the Forum said.
Apart from refunding Rs28,000, the dealer will also have to pay an additional amount of Rs10,000 towards the mental agony the complainant had to go through and also towards covering the cost of the proceedings. The verdict was pronounced by Consumer Forum president A Rajesh, Sheen Jose and VK Beenakumari, the report says.