After declining for two days, the stock markets shot up on expectations of BJP’s victory in Assembly elections but the upside for the index is limited
On Wednesday, we suggested that while the index has given up some gains, the uptrend is not under threat. On Thursday, the stock markets were upbeat with BSE Sensex rallying over 21,000, mainly on political news of a likely clear mandate for BJP in three out of the five assembly elections. However, while the indices looked strong, it gave a substantial part of the gain. Besides, market breadth was terrible (with advance-decline ratio almost one). The rupee hit a 5-month high while the 10-year government bond yield remains largely flat. All global markets are also rolling over.
The BSE Sensex stock market index opened up at 20,992, hit an intra-day high of 21,165 and then trended down to an intra-day low of 20,929 before closing at 20,957 (up 249 points or 1.20%). Similarly, Nifty stock market index opened up at 6,262, then hit an intra-day high of 6,241 then trended down to hit an intra-day low of 6,232 before closing at 6,241 (up 80 points, or 1.30%).
By and large, all stock market indices were seen trending up except for media, IT, FMCG and pharmaceuticals which were down 2.09%, 0.47%, 1.04% and 1.31% respectively.
Of the 50 stocks on the Nifty, 34 advanced and 16 declined. The top gainers were IDFC (6.78%); ICICI Bank (6.63%); HDFC Bank (4.62%); L&T (4.60%) and BHEL (4.19%). The top losers were Sun Pharmaceuticals (-2.43%); Dr Reddy (-1.61%); Lupin (-1.41%); ITC (-1.33%); Hindustan Unilever (-1.22%).
The government has deferred the decision on issuing banking licenses until March next year, citing that many of the license applicants have “complex” structures. The United States Federal Reserve said that it saw stronger manufacturing during October to mid-November and sees “modest to moderate” growth in the US economy. The US trade deficit shrank 5.4% in October to $40.6 billion. The US November non-manufacturing index (i.e. service sector) fell to 53.9 from 55.4 in October. The US markets sold off during the day but recovered impressively to end slightly lower. The Nasdaq was flat while S&P 500 was down 0.12% and Dow down 0.15%. US stock futures were seen trading flat ahead of Thursday trading in US. Interestingly, yesterday, the US 10-year bond yield ht 2.85% even without any hint of inflation and tapering.
In Asia Nikkei finished weak dipping 1.50% as Yen strengthened. Hang Seng and Shanghai were flat while Singapore was down 1%.
Meanwhile, in Europe, the Spanish 5-year notes are currently yielding 2.72%, the lowest since July 2005, indicating recovery in progress. Spain’s IBEX index was up 0.35%. However, all European investors’ eyes are on ECB and BOE decisions are due today on monetary policy. European stock markets were flat.
Politicians and businessmen heading sports bodies are causing harm to the games and should leave their running to sportpersons, the Supreme Court said
The Supreme Court on Thursday while blaming administrators for the poor state of the national game, hockey, in the country said sports bodies should be headed by sports persons and not by businessmen.
In stinging remarks on the state of affairs in sporting bodies, the apex court said it is a “sad commentary” that people who are the administrators of the game have nothing to do with sports and they run the bodies at the cost of the game.
A bench comprising justices TS Thakur and J Chelameshwar said, “Sports are run by private individual persons. Private individuals are controlling the games in India. Can the game be held hostage by private interest? This is why hockey has come down and the team is struggling to qualify for Olympics where we used to win gold medals”.
“These officers run the federations at the cost of the game. They do not have anything to do with the game. It is a sad commentary on sports in the country,” it further said.
The Court was hearing a plea filed by Indian Hockey Federation (IHF), which is at loggerheads with its rival Hockey India (HI), seeking stay on the proceeding initiated by Federation of International Hockey to find out which of them is to be recognised to represent the country at international events.
The apex cout also mentioned that politics has taken hockey into abysmal low. "Deteriorating condition of the national game is a matter of concern. India used to win gold medals earlier but not now," the apex court mentioned.
The Indian hockey team has won the Olympic gold eight times but finished last (12th) at the London Olympics and finished in eighth place at the World Cup in 2010 - winning just one match out of six.
The BMC has suspended two officials for allowing gutka and paan masals, which is banned in Maharashtra by charging an octroi duty instead of prohibiting the consignment from entering the city
The BrihanMumbai Municipal Corporation (BMC) has suspended two inspectors from its octroi department who allegedly collected duty on banned gutka and paan masala at Mumbai Central railway station. Octroi department’s collector & tax assessor issued the suspension letter on 20 November 2013, which reads, “DB Howal and PS Sonawane have been suspended with immediate effect as they have been accused of serious dereliction of duty.”
Both Howal and Sonawale are alleged to have released a large consignment of gutka and pan masala which are banned in the state.
Railway Activist Samir Zaveri, who runs a Railway Helpine wrote a letter to Anti Corruption Bureau (ACB) of Maharashtra and requested them to file a suo motu case in this matter. He requested to conduct honest probe to find out if these inspectors made any money by favoring illegalities, such as allowing banned gutka.
Zaveri said, “The government of Maharashtra has taken good step by banning gutka. But some greedy, dishonest government employees are washing out implementation and encouraging black marketing of gutka in Mumbai city in complicity with contraband importers.”
According to Zaveri, over the past five years, the octroi department of BMC have incurred losses worth Rs100 crore alone, because of such dishonest officials posted at Railway stations in the city.
During the investigation by Octroi department, both the accused inspectors were questioned on how they had passed the consignments of gutka and paan masala and how they valued the same."
As per records, of the total eight railway receipts, of which five were pan masala and three were supari one receipt of 5 June 2013 had been passed and signed by DB Howal. In the case of PS Sonawane, seven receipts were cleared.