Nifty, Sensex shoots up due to crude oil price collapse – Weekly closing report
Nifty will weaken a bit mid-week but the trend is higher, thanks to fundamental change caused by oil price collapse
The S&P BSE Sensex closed the week that ended on 28th November at 28,694 (up 359 points or 1.27%), while the NSE's CNX Nifty ended at 8,588 (up 111 points or 1.31%). Previous week, we had mentioned Nifty may keep pushing higher, as long it does not close below 8,350 for the week.
On Monday, Nifty had a positive range bound move until the noon session. However, it then gathered strength and rose to close at a new lifetime high. Nifty closed at 8,530 (up 53 points or 0.62%).
Parliamentary Affairs Minster M Venkaiah Naidu, said Sunday that there is the need for early passing of Insurance Laws Amendment Bill that seeks to enhance FDI limit in capital-starved insurance sector by the Rajya Sabha.
On Tuesday, Nifty recorded a loss on higher volume on the NSE. The loss was the highest since 16 October 2014. Nifty closed at 8,463 (down 67 points or 0.79%). The current up move was shaken with the SEBI imposing restrictions on issue of offshore derivative instruments or P-notes by foreign portfolio investors.
On Wednesday, the move on the Nifty in the morning session seemed like it would book loss for the second consecutive session. However, in the noon session the benchmark moved higher and remained in the green zone till the end of the session. Nifty closed at 8,476 (up 13 points or 0.15%).
Global rating agency Moody's said India's credit trends in 2015 will depend on steps governments takes to address high fiscal expenditures, recurrent food price inflation, and wide infrastructure deficit. The sovereign outlook for India (Baa3) remains stable.
On Thursday, Nifty witnessed a volatile session especially due to the expiry of November futures and options (F&O) segment. Nifty closed at 8,494 (up 18 points or 0.22%). Moody's expects the country's GDP to grow at 5.3% in the July-September quarter of the current fiscal, better than 4.8% clocked in the year-ago period. The Indian government will announce data on gross domestic product (GDP) for the quarter ending September 2014 on Friday.
With the fall in crude oil prices, the benchmark back home witnessed an upsurge. Nifty closed at 8,588 (up 94 points or 1.11%).
The Indian government is considering a plan to reduce stakes in state-run banks to 52% that could enable it to raise about Rs891.2 billion ($14.39 billion), Jayant Sinha, junior finance minister told lawmakers on Friday.
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


Nifty, Sensex to rally further – Friday closing report
As long as Nifty stays above 8,550, it should rally further
In Thursday’s closing report, we had mentioned that a strong move above 8,510 will ensure a fresh up move on CNX Nifty. The index opened Friday above this level and hit its low at the same level. This was followed by a range bound session with the benchmark moving gradually ahead.
The S&P BSE Sensex opened at 28,491 and declined marginally to reach its low level for the day at 28,484. Nifty opened at 8,516.80 and hit a low at 8,516.25. The benchmarks hit a high at 28,822 and 8,617, respectively. Sensex closed at 28,694 (up 255 points or 0.90%) while Nifty closed at 8,588 (up 94 points or 1.11%). NSE recorded a volume of 92.39 crore shares. India VIX rose 1.21% to close at 12.8975.
The Reserve Bank of India (RBI) on Thursday set Rs100 crore as the minimum paid-up equity capital requirement for setting up payments banks and small finance banks.
The National Stock Exchange (NSE) said it decided to provide a flat concession of 40% in the transaction charges on the incremental billable volume (i.e. the Premium value) above Rs750 crore in a month for two months from 1 December 2014 to 31 January 2015 on a pilot basis on its equity options segment. This is being done to improve the liquidity in the equity options segment and to align with the feedback received from the market, an exercise to review the transaction charges in the equity options segment was carried out by the exchange, NSE said in a circular.
There is news that the Indian government may extend excise duty concessions on automobiles beyond 31 December 2014 as the industry continues to struggle with sluggish demand due to high interest rates.
The government is considering a plan to reduce stakes in state-run banks to 52% that could enable it to raise about Rs891.2 billion ($14.39 billion), Jayant Sinha, minister of state for finance told lawmakers on Friday.
A Supreme Court order scrapping most coal extraction permits given to companies would have a likely impact of Rs96,484 crore on state-run lenders, Sinha reportedly said in a written reply in parliament on Friday. The government had deduced the impact of the cancellation of the coal block allotments on banks due to likely stoppage of power production, Sinha said.
Market sentiments were boosted as the crude oil sank to a four-year low, heading for the biggest weekly tumble since 2011, after the Organization of Petroleum Exporting Countries (OPEC) refrained from reducing output. The OPEC kept its production ceiling steady at yesterday's meeting in Vienna, resisting calls from Venezuela to cut output. Jet Airways (19.99%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today.
Container Corporation of India (7.15%) was among the top two losers in ‘A’ group on the BSE. The stock was recently in news with its Part-Time Non-Official (Independent) Director, Deepak Gupta, resigned from office of directorship due to certain personal reasons. The stock hit its 52-week high on Wednesday.
State Bank of India (5.10%) was the top gainer in Sensex 30 pack; the stock hit its 52-week high today. The bank was in news recently as it plans to launch an Islamic equity fund next month aimed primarily at its 17 crore Muslims.
The US stock market remained closed on Thursday for Thanksgiving Day holiday.
Asian indices showed mixed performance. Shanghai Composite (1.99%) was the top gainer while NZSE 50 (0.57%) was the top loser.
Japan's annual core consumer inflation slowed for a third straight month in October due to falling oil prices, highlighting the economic gloom facing Premier Shinzo Abe as he campaigns for a new mandate to implement his stalled recovery plan. Factory output unexpectedly rose in October, suggesting companies have reduced inventories of unsold goods built up after April's sales tax hike triggered a recession.
European indices were trading in the red.
German retail sales rose in October at their fastest monthly pace in more than three years. Retail sales in October rose 1.9% in calendar- and inflation-adjusted terms compared with September, the Federal Statistics Office said today, 28 November 2014. It was the highest figure since June 2011, when it was 2.6%.
In France, consumer spending--by far the largest component of the economy--dropped 0.9% in October from September, the sharpest month-on-month decline since June 2013, statistics agency Insee said.


Indian Victims of Pan Am 73 asks Gujarat CM not to partner with US

Indian Victims of the Pan Am Flight 73 has appealed to Gujarat Chief Minister Anandiben Patel to reconsider the decision to allow US partner with the Vibrant Gujarat summit


The Indian Victims of Pan Am 73, headquartered in Chandigarh, on Friday appealed to the Gujarat Chief Minister Anandiben Patel to reconsider the state government's decision to allow US to collaborate with the Vibrant Gujarat.


Aneesh Bhanot, in an appeal sent to the Gujarat CM, on behalf of the victims, said, "The US has been systematically and continuously discriminating against Indians. This was apparent from the Pan Am 73 (PA73) hijack case where that country discriminated against Indians and abandoned us in 2008 and is continuing to do so. When US is treating Indians like third class citizens of the world, why should India enhance business and profits of America by offering them a platform in Vibrant Gujarat?"


Following a 29 May 2014 judgement from the Punjab & Haryana High Court against discrimination from the US, the Indian Ministry of Civil Aviation investigated the case. On 5 September 2014, the Ministry sent a letter to the Ministry of External Affairs castigating US and raising some very important questions asking how Indians were abandoned.


"How can they (US) pick and choose among passengers travelling on the same flight? If the laws in US are posing any impediment in this regard, it is the duty of the US Government to amend these laws so that all those who have suffered due to such attacks on US aircrafts or ships, are eligible for compensation," the letter says.


American airline, Pan Am 73, was hijacked on 5 September 1986 at Karachi Airport by heavily armed terrorists backed by Libya. The attack was primarily against Americans. In a remarkable act of daring and courage the all-Indian cabin crew led by Neerja Bhanot, the Flight Purser, saved the lives of around 40 Americans on board by hiding their passports so that they could not be identified as US citizens by the terrorists. After 17 hours, the terrorists opened fire and threw hand grenades. In the mayhem, 21 passengers died while over 200 were injured, most of them Indians. Neerja Bhanot gave up her own life while saving hundreds of others and was subsequently conferred the Ashoka Chakra, India's highest civilian award for bravery.


According to the letter, in 2008, Libya gave US about $1.5 billion to settle all the cases of terrorism in which it had been involved and Pan Am Flight 73 was part of this settlement. However, US decided to give compensation only to the around 40 Americans on board, while it discriminated against and abandoned the Indians. Interestingly, in a similar incident of a Pan Am plane, PA103, US compensated all victims (primarily Americans and Europeans) from the same money given by Libya.


Therefore, the Indian Victims requested the Gujarat Chief Minister to tell the US in a straightforward manner that it needs to first respect Indians, resolve pending issues like Pan Am 73 before it enhances business with us, the letter says.



ch prakash

2 years ago

the attitude of america to citizens of other countries especially India is pathetic be it Bhopal or Panam. america's actions are deplorable. They want profiteer out of any situation. Do we really require their capital. Bring back tax payer friendly policies and good taxation policies. Revamp the judicial system, time bound delivery of judgements. It will solve the problem of India.

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