Nifty has to stay above 8227 for the rally to run
We had mentioned in Friday’s closing report that the S&P CNX Nifty needs to close above 8,180 on Monday for the upmove to continue. The benchmark opened slightly higher and moved in a range upto around 1.40 pm, after which it picked up pace and closed higher for the third consecutive session. Over the past three trading days (including today), the index covered up all the losses suffered between 11 December 2014 and 17 December 2014.
S&P BSE Sensex opened at 27,480 while Nifty opened at 8,255. After hitting a low at 27,382 and 8,228, the benchmarks moved higher to the level of 27,725 and 8,331.
Sensex closed at 27,702 (up 330 points or 1.21%) while Nifty closed at 8,324 (up 99 points or 1.20%). NSE recorded a volume of 63.31 crore shares. India VIX fell 2.07% to close at 14.2100.
The government introduced the Constitution Amendment Bill on Goods and Services Tax (GST) in Lok Sabha. GST will simplify and harmonise the indirect tax regime in India.
Central taxes like Central Excise Duty, Additional Excise Duties, Service Tax, Additional Customs Duty (CVD) and Special Additional Duty of Customs (SAD), etc. will be subsumed in GST. At the State level, taxes like VAT/Sales Tax, Central Sales Tax, Entertainment Tax, Octroi and Entry Tax, Purchase Tax and Luxury Tax, etc. would also be subsumed in GST. The Centre will compensate States for loss of revenue arising on account of implementation of the GST for a period up to five years. A provision in this regard has been made in the Amendment Bill. The compensation will be on a tapering basis, i.e., 100% for first three years, 75% in the fourth year and 50% in the fifth year.
On the political front, media reports suggested that Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) will not win enough seats to form a government in Jammu and Kashmir, two exit polls showed on Saturday.
Suzlon Energy (7.83%) was among the top two gainers in ‘A’ group on the BSE. Senvion SE, a wholly owned subsidiary of the company has signed four new contracts totalling over 60 megawatts (MW) in UK, including the first contract to be signed in the UK with developer RES.
Ceat (3.96%) was among the top two losers in ‘A’ group on the BSE. It was recently reported that when the BSE asked for a clarification over the news reported in the media that, ‘CEAT tyres to invest Rs 400cr in Nagpur plant’, the company clarified that its board had approved an investment of Rs 420 crore for setting up of a plant for manufacture of 2-3 wheeler tyres with a capacity of 120 MT/ day. This was informed to the exchange in October 2014. Subsequently it made an application for grant of lease of land at Buti Bori near Nagpur, Maharashtra to the Maharashtra Industrial Development Corporation. The lease was granted by MIDC and the company completed laying of the foundation stone on December 11, 2014.
Coal India (3.61%) was the top gainer in the Sensex 30 pack. Coal India arm Western Coalfields Limited, has proposed to increase the price of coal by Rs 500 per tonne on certain grades, to make some of its projects viable.
Hindalco (1.17%) was the top loser among Sensex 30 stocks. It lost its chance to bid for Mahan coal block in the upcoming coal auction after the block was reserved specifically for the power sector by the coal ministry, casting a shadow on its plan to fire up its end-use aluminium plant in Madhya Pradesh.
Except for Jakarta Composite (0.37%) all the other Asian indices closed in the green.
KLSE Composite (1.64%) was the top gainer. South Korea's government trimmed its growth forecast for next year but said domestic demand would contribute more to economic activity. The 2015 gross domestic product growth forecast was lowered to 3.8%, from a July projection of 4.0%, South Korea's Ministry of Strategy and Finance said Monday in its biannual economic outlook. The estimate for GDP growth this year was also revised down, to 3.4% from 3.7%. The economy grew 3% in 2013.
Taiwan's unemployment rate inched down last month due to a decrease in job seekers.
The rate was 3.89% in November from 3.95% in October, the Directorate-General of Budget, Accounting and Statistics said. On a seasonally-adjusted basis, the rate was 3.87%, unchanged from October's 3.87%, it said.
On Friday US indices closed marginally higher. European indices today were trading in the green. US Futures too were trading higher.
In Europe, worries emerged that the European Central Bank's money-printing plans could come with a number of restrictive strings attached, media reported.
Seeking justice for ex-servicemen, BJP leader Subramanian Swamy today met Defence Minister Manohar Parrikar and raised the issue of one-rank one-pension, PTI News reported
Mumbai continues to witness more deaths on tracks due the apathy shown by the Railways either while dealing with traffic situation or helping victims in the golden hour
Mumbai's suburban train network or local trains, continue to kill about 10-15 commuters and injure 15-20 people every day in rail related accidents. Although, the suburban rail network is labelled as Mumbai's lifeline, the same is increasing turning into a 'deathline' for some commuters. In fact, several times in the past, the Railways have incurred the wrath of the Bombay High Court and yet, there is no respite for commuters.
According to railway police statistics, about 3,600 people die and over 4,000 are injured every year, with activists blaming overcrowding and the lackadaisical attitude of railway authorities for the mishaps. Samir Zaveri, who lost both his legs at the age of 16 and is now helping improve railway services, said, "There is a failure to provide first aid and a delay in taking injured commuters to hospitals. Since ambulances are not available at railway stations, many commuters bleed to death.”
During 2012, in Mumbai alone, around 3,541 people died while 3,808 were injured in railway accidents. This happens due to overcrowding of suburban or local trains.
Specifically, a twelve-car rake carries over 8,000 passengers against its carrying capacity of 1,800, which leads to unbearably overcrowded trains during peak hours.
The once efficient suburban rail network is the lifeline of Mumbai, however over the past two decades, it is creaking under the weight of passenger influx, corruption and lack of investment in upgrading infrastructure. The extraordinary crowding of trains and poor commuter facilities as stations makes the Mumbai suburban train system so prone to accidents that nearly 10 people die in railway mishaps every day – a figure that would have made frontpage news anywhere else in the world but meets with apathy in India.
Earlier this month, the Bombay HC, while hearing a petition filed by Samir Zaveri rapped the Railways for its plan to levy a 'golden hour cess' to fund setting up emergency medical rooms at 15 stations. A division bench of Justice Abhay Oka and Justice Ajay Gadkari, said, ''This (providing medical aid) is your constitutional and legal obligation. You want to recover cess from passengers for providing medical help?''
The HC has scheduled the next hearing of the case on 24 December 2014, and have asked the railways to file its affidavit on the issue.
After a trauma centre was set up at Dadar railway station on the orders of the court, the HC in March 2013 ordered the Railways to consider setting up such rooms at other major stations — Churchgate, Mumbai Central, Bandra, Andheri, Borivli, Vasai, Palghar, Kurla, Thane, Dombivli, Kalyan, Karjat, Wadala, Vashi and Panvel — which had seen over a 100 accidents in the previous year.
The suburban railway system in Mumbai is the most complex, densely loaded and intensively utilised system in the world and has the highest passenger density in the world—over 70 lakh commuters travel every day.
Moneylife Foundation has set up the Samir Zaveri Railway Helpline that provides email assistance to all commuters. (http://foundation.moneylife.in/?page_id=6196)