Stocks
Nifty, Sensex struggling; Bank Nifty trend up – Wednesday closing report
Nifty may rally if Tuesday’s lows hold. Bank Nifty trend is positive
 
We had mentioned in Monday’s closing report that NSE’s CNX Nifty has to close above 8,300 for a bounce back. The 50-stock index opened Wednesday marginally lower and witnessed a move in the red for most of the session. Bank Nifty traded mostly in the green.
 
The S&P BSE Sensex opened at 27,396 while Nifty opened at 8,275. The indices hit a low at 27,177 and 8,219 before moving to a high of 27,439 and 8,308, respectively. However, both the benchmarks closed the day in the red. Sensex closed at 27,226 (down 170 points or 0.62%) while Nifty closed at 8,240 (down 45 points or 0.55%). Bank Nifty had a complete opposite trading pattern today. It moved most in the green and closed higher. It opened at 18,256 and after hitting a low at 18,202 it reached upto 18,432 and closed at 18,303 (up 56 points or 0.31%). NSE recorded a volume of 70.03 crore shares. India VIX fell 1.01% to close at 17.2350.
 
The Cabinet Committee on Economic Affairs (CCEA) Wednesday approved a clear policy on testing requirements for discoveries made under New Exploration and Licensing Policy (NELP) blocks which will help settle the long pending issue with regard to 12 discoveries in five blocks pertaining to ONGC (six discoveries) and Reliance Industries (six discoveries). Finance Bill will be taken up in the Lok Sabha tomorrow, 30 April 2015.
 
The Union Cabinet on Wednesday approved the proposal to set up 100 smart cities across the country. In addition to this, old housing projects initiated by the previous government have also been cleared.
 
The Indian government has raised the import duty on sugar from 25% to 30% and imposed other restrictions on inbound shipments. The CCEA also decided to waive off the 5% excise duty on production of ethanol.
 
As many as 224 central sector infrastructure projects in sectors like road, rail and power were showing cost overrun of over Rs2 lakh crore till December-end, and Parliament was informed today.
 
Coming back to the Indian stock market, Welspun Corp rose 19.95% to close at Rs78.15 on the BSE. It was again the top gainer today after posting improved consolidated results for quarter ended March 2015 on Tuesday.
 
KPIT Technologies fell 19.99% to close at Rs 124.05 on the BSE. The stock fell in spite of improved result posted on Tuesday after market hours.
 
Axis Bank (3.30%) was the top gainer in the Sensex 30 pack. It posted a net profit of Rs2,180.59 crore for the quarter ended 31 March 2015 as compared to Rs1,842.32 crore for the quarter ended 31 March 2014. Total income has increased from Rs10,17.86 crore to Rs12,384.39 crore for the relevant period. Bharti Airtel (3.32%) was the top loser in the Sensex 30 pack despite posting good March 2015 quarter result.
 
The US indices had mixed closing Tuesday with Dow and S&P500 closing in positive. 
 
A two-day meeting of the Federal Open Market Committee (FOMC) to review US monetary policy, which began yesterday, will conclude with the release of a post-meeting statement later today.
 
Except for Shanghai Composite (0.01%) all the other trading Asian indices closed in the red. Jakarta Composite (2.61%) was the top loser.
 
In Japan, Monetary Policy Meeting of Bank of Japan (BOJ) is scheduled tomorrow. The Japanese stock market was shut due to Showa Day Holiday.
 
China's central bank is reportedly planning to launch a credit-easing program to help restructure trillions of dollars of local-government debt. Chinese banks would be able to swap local government bailout bonds for loans from the central bank under the plan, according to reports.
 
European indices were trading in the red. US Futures too were trading lower.
 

User

Rs.1,000 minimum pension to continue
The union cabinet on Wednesday approved the continuation of Rs.1,000 minimum monthly pension for pensioners under the Employees' Pension Scheme beyond the financial year 2014-15.
 
Currently, it is effective only up to March 2015.
 
The decision to continue with the pension on perpetual basis was taken at a meeting of the union cabinet chaired by Prime Minister Narendra Modi here, an official release said.
 
The cabinet also approved corresponding grant of continuous annual budgetary support for implementing the minimum pension, which will be to the tune of Rs.850 crore per year on a tapering basis.
 
The present proposal is likely to benefit approximately 20 lakh pensioners.

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COMMENTS

Mr Jitendra

2 years ago

This means "Rob Peter to pay Paul" system of EPS will continue.

The entire EPS scheme 1995 is unrealistic. The amount of EPS deduction(Rs 541 or Rs 1250 now) collected from a EPFO subscriber is irrelevant while giving pensions. Unrealistic pensions are doled out at the end. There remains a shortfall that they keep filling with new new subscribers.
Even if they simply deposit the Rs 541 or Rs 1250 per month in each employee's PPF account those returns will be much better than what they give as pension per month.

I tried explaining this through multiple grievances on pgportal but to no avail. They pretend that they are not able to understand anything what I am saying.

Cabinet okays stronger, well-defined anti-graft bill
In a bid to remove the fear of future harassment over decisions taken in good faith by policy-makers but assign stricter punishment for graft, the cabinet on Wednesday approved key changes in the anti-corruption law to be placed before parliament.
 
Among the proposals in the Prevention of Corruption (Amendment) Bill, 2013, is a new definition of criminal misconduct and more stringent punishment for offences, both by the giver and taker. In addition to individuals, it also seeks to bring commercial entities within its purview.
 
The minimum punishment is proposed to be enhanced from six months to three years and the maximum from five years to seven years. 
 
"The seven-year imprisonment brings corruption to the heinous crime category," an official statement said after a cabinet meeting here chaired by Prime Minister Narendra Modi.
 
The amendments also seek to make the law conform to the UN Convention against Corruption.
 
In the existing act legislation, the guilt of the person is presumed for an offence of taking a bribe. The bill seeks to amend this provision to only cover specific offences. It also wants that an "intention" to acquire ill-gotten assets should be proved by the prosecutors.
 
Earlier this week, Finance Minister Arun Jaitley had said the 27-year-old anti-corruption law needed a complete re-haul as it was not only preventing an honest decision-making process, but also leaving a lot of room for undesirable interpretation.
 
"Does the 1988 act adequately distinguish between an act of corruption and one where honest error has been made," Jaitley asked at an event of the Central Bureau of Investigation (CBI).
 
"This 1988 act fails the test," he said, faulting the inference of words like corruption and gratification.
 
"In any economic activity, decision-making has to be quicker," he said, alluding to recent events where former bureaucrats -- some of whom enjoyed impeccable record during service -- were called in for questioning by probe agencies for decisions taken earlier, and charges filed against them.
 
The new bill seeks to rectify that.
 
"It is proposed to extend the protection of prior sanction for prosecution to public servants who cease to hold office due to retirement, resignation," an official statement said on Wednesday, following the cabinet approval.
 
"Further, prior sanction for inquiry and investigation shall be required from the Lokpal, or Lokayukta, as the case may be, for investigation of offences relatable to the recommendations made or decision taken by a public servant in discharge of official functions or duties."
 
The Prevention of Corruption (Amendment) Bill, 2013 was introduced in the Rajya Sabha on August 19, 2013. The related parliamentary standing committee submitted its report on February 6 next year. The views of the Law Commission were also incorporated. But the Bill could not be passed.
 
In the new bill, proper definition of several terms has been proposed.
 
For example, public function is defined as one that is performed in the course of employment and done so impartially, in good faith. Improper performance is breach of this expectation -- and relevant means one that is performed in good faith, in a position of trust.
 
At the same time, the bill omits an existing provision where during trial, if a person makes a statement that bribe was given, it cannot be used against that person by the prosecution. This may deter bribe givers from appearing as witnesses in cases against public officials.
 
Other highlights of the bill:
 
- Powers of attachment of properties with the trial court instead of district court;
 
- Provisions on inducement of public servant added to contain corruption;
 
- Making commercial organisations issue guidelines while dealing with a public servant;
 
- Providing for completion of trial within two years, against eight years it takes now;
 
- Intentional bribe-taking by public servants treated as criminal misconduct;
 
- Possession of disproportionate assets as proof of bribe-taking; and
 
- Coverage of both monetary and non-monetary gratification.

User

COMMENTS

Ralph Rau

2 years ago

Old definition of government corruption:

Extracting personal pecuniary or non-pecuniary advantage from a citizen or government contractor by misuing one's official position.

New definition of corruption (by the corrupt under the old definition):

Any act or ommission of a public servant that results in delaying any "development work" despite the offer of customary pecuniary and non-pecuniary advantage by a citizen or government contractor.

Ralph Rau

2 years ago

.."distinguish between an act of corruption and one where honest error has been made," Jaitley asked...

This is a joke right ?

vishal

2 years ago

This bill, if it becomes a law and enforced, will change the economic condition in India and bring lakhs of culprits dealing in grafts in a day to day basis. But the opponents are going to be none other than opposition and they will try to stop this bill in some pretext or other. Graft has become an accepted form of living and amassing wealth with many people in India and it is doubtful if they will allow this bill to become a law.

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