Nifty, Sensex to come under pressure: Weekly Market Report

If the Nifty is able to cross 5,950, a rally to 6,080 is possible. However, most likely, Nifty will take a dip even if it does rally

A stronger rupee and positive developments in regard to the Syrian crisis pushed the Indian market up on the back of rising foreign funds. The market now awaits the stance of Federal Reserve on trimming its monetary stimulus. The BSE 30-share Sensex rose 462.70 points (or 2.40%) to close the week at 19,732.76 while the National Stock Exchange (NSE) Nifty settled at 5,850.60, up 170 points (or 3%). The Reserve Bank of India (RBI) on Friday took an additional measure to bring in more foreign inflow by allowing non-residents to buy stocks of listed domestic companies through the foreign direct investment (FDI) route instead of earlier process to raise their stakes such as open market offers.


The Sensex rose for the fourth consecutive session on Tuesday recording the highest percentage gain since 27 May 2009. On Wednesday the market edged marginally higher with the news making round that US President Barack Obama has asked Congress to delay a vote on whether to authorize military strikes. On Thursday ahead of the data on consumer price index for urban and rural India for August 2013 and industrial production for July 2013 the market broke the trend of five days of upmove. On Friday the Sensex fell again. The Prime Minister's Economic Advisory Council (PMEAC) sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 from earlier estimate of 6.4% and said that tight monetary policy by the RBI may be continued until stability in the rupee value is achieved.


Sensex and Nifty have moved sharply up from their recent lows about two weeks ago. The indices will either correct now by about 2%-3% or go on to target 6080 from where a deeper correction would take place


With the number of Americans seeking unemployment benefits plummeting last week, there is speculation that the Federal Reserve would begin trimming its monetary stimulus at the next week's meeting.


Among the other indices on the NSE, the top two gainers this week were Realty (9%) and Infrastructure (7%) while the only loser was IT Sector (1%).


Among the Nifty-50 stocks, the top five gainers were PNB (15%); D L F (14%); Axis Bank (11%); Larsen & Toubro (11%) and Tata Power (11%) while the top five losers were Cairn (4%); IndusInd Bank (3%); ONGC (2%); TCS (2%) and I C I C I Bank (2%).


Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:


Top ML sector


Worst ML sector




Software & IT Services




Oil & Gas


Telecom Services


Industrial Intermediates












About 75% funding of six major political parties is from unknown sources!

An analysis by Association of Democratic Reforms -ADR of Income Tax returns and statements filed by Congress, BJP, CPI-M, CPI, NCP and BSP with the Election Commission shows that between 2004 to 12, these political parties received funding worth Rs3,675 crore through unknown sources

Where do the political parties get their funds from? An analysis of Income Tax (I-T) returns and statements filed by six major political parties, All India Congress Committee (INC or Congress), Bharatiya Janata Party (BJP), Communist Party of India-Marxist (CPI-M), Communist Party of India (CPI), Nationalist Congress Party (NCP) and Bahujan Samaj Party (BSP) with the Election Commission (EC) shows that their funding sources remain largely unknown. The analysis done by Association of Democratic Reforms (ADR) shows that sources for over 75% of the funding received by political parties cannot be traced. This becomes very relevant in the light of recent events when the political parties were brought under the ambit of Right to Information (RTI) Act by a ruling of Central Information Commission (CIC). Unfortunately, full transparency is not possible under the current laws, and it is only the RTI that can keep citizens informed.


Political parties are required to submit a statement of election expenditure to the EC containing details like total amount received by them as funds in the form of cash, cheques and demand drafts (DDs) among other things. Political parties submit these statements providing information of funds collected from the date of announcement of elections till the date of completion of elections, which could be between three weeks and three months based on the notification issued by the EC.


Here are the highlights of funding received by six political parties between FY2005 to FY2012


  • Total income of political parties between FY 2004-05 and 2011-12: Rs4,895.96 crore
  • Total income of political parties as donations from Electoral trusts: Rs105.86 crore, which is 2.16% of the total income of the parties
  • Total income of political parties from known donors (details of donors as available from contribution report submitted by parties to Election Commission): Rs435.85 crore, which is 8.90% of the total income of the parties
  • Total income of political parties from other known sources (e.g., sale of assets, membership fees, bank interest, sale of publications, party levy etc.): Rs785.60 crore, or 16.05% of total income
  • Total income of political parties from unknown sources (income specified in the IT Returns whose sources are unknown): Rs3,674.50 crore, which is 75.05% of the total income of the parties

    #Assuming each donor gives Rs20,000, it shows the minimum number of donors required to give the total amount of unknown donations


Description of Funds received by political parties at Party headquarters during elections by these six parties

90.38% of the total funds received by INC at the party headquarters between 2008 and 2012 was by cash (Rs251.96 crore) while only 9.62% of the funds was by cheque (Rs26.81 crore)

83.78% of NCP's total funds were by cash (Rs14.93 crore) and a meagre 16.22% by cheque/DD (Rs2.89 crore)

From the analysis, it is quite evident that a very large percent of the income of political parties (75.1% for national parties) cannot be traced to the original donor.

ADR said, “Full details of all donors should be made available for public scrutiny under the RTI Act. Some countries where this is done include Bhutan, Nepal, Germany, France, Italy, Brazil, Bulgaria, the US and Japan. In none of these countries is it possible for 75% of the source of funds to be unknown, but at present it is so in India.”

In order to strengthen political parties, elections and democracy in India, it is imperative that all political parties should provide information under the RTI.

(Vinita Deshmukh is the consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”)





3 years ago

In SBI, recently appointed clerk, unknowingly her service conditions, accepted small deposits from her friends online and delivered them to senders' kith and kin. As such sum exceeded her known salary & allowances figure, she was chargesheeted.

But, who will chargesheet the Political parties for accepting the funds from unknown sources?

MG Warrier

3 years ago

Interesting analysis. Perhaps sources are not 'unknown' but 'undisclosed'. Growing public interest in matters like sources and uses of funds by political organisations and other entities is encouraging. Today in Kerala, Guruvayur Temple authorities are debating whether or not to furnish information to RBI, in response to a querry, about the gold stock with the temple. Gold and jewellery stock with another deity in Kerala is being accounted under Supreme Court instructions. Let us hope, all these will lead to transparency in handling public funds and the misconception that funds with government treasury alone are 'public funds' will slowly be corrected.

Finally, its Narendra Modi for BJP in 2014
As expected, the BJP announced that Narendra Modi will be the party's candidate for prime ministership in 2014 
After keeping speculations ripe for days, months, the Bharatiya Janata Party has named Gujarat chief minister Narendra Modi as its prime ministerial candidate.
The announcement was made after the meeting of the BJP parliamentary board, one the party's top decision making panels. Modi, 62, heads the party's campaign committee for the 2014 Lok Sabha polls.
The day saw hectic parleys with party president Rajnath Singh trying to get all leaders, including senior leader LK Advani, onboard. This afternoon, a little before he made a last effort at convincing the senior leader, the BJP president called up ally Shiv Sena and informed it that Narendra Modi will be nominated. Shiv Sena has promised its support while BJP's another ally, the Akali Dal, has already said it favours fronting Modi.




3 years ago

Good that Narendra Modi is face of BJP for 2014 LS polls. Jailed rouge policeman Vanzara has brought to open how evidences were CREATED with real shoot out resulting in REAL dead bodies, so voters have to deide should we have likes of Narendra Modi, Mulayam Singh Yadav who will not hesitate to encourage communal killings to attain PM chair. Sushma and other unsuccessful aspiring claimants for PM chair in BJP pray to almighty that they should not meet fate of Hiren Pandya. Advani deserved to see this day because he didnot use his official position to protect honour of murdered IE reporter Shivani Bhatnagar when the needle of suspicion pointed towards Pramod Mahajan

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