Even if Nifty gives up some gains on Wednesday, it may push higher over the coming days
We had mentioned on Monday that the Indian market will log further gains. The indices continued to make gains on Tuesday with S&P BSE Sensex logging in the highest percentage gain since 6 June 2014, while NSE's CNX Nifty recorded the highest gains since 30 June 2014. After moving in a narrow range up to 2.00pm, both the benchmarks shot up.
BSE's 30-share Sensex opened at 25,704 while the NSE's 50-share Nifty opened at 7,689. The indices hit a low at 25,646 and 7,655. During the last hour of the trading, Sensex hit a high of 25,905 and closed at 25,881 (up 362 points or 1.42%) while Nifty hit a high of 7,736 and closed at 7,727 (up 101 points or 1.33%). NSE recorded a much lower volume of 64.79 crore shares. India VIX fell 3.78% to close at 13.4675.
Except for Consumption (0.01%) all the other indices closed in the green. The top five gainers were CPSE (2.66%), Finance (2.18%), PSE (2.12%), Auto (1.84%) and Energy (1.59%).
Of the 50 stocks on the Nifty, 44 ended in the green. The top five gainers were Tata Motors (5.99%), Gail (5.55%), HDFC (5.30%), ONGC (3.38%) and BPCL (3.15%). The top five losers were Bharti Airtel (1.46%), Tata Power (1.16%), Maruti (0.32%), Hindalco (0.24%) and Hero MotoCorp (0.23%).
Of the 1,596 companies on the NSE, 853 companies closed in the green, 655 companies closed in the red while 88 companies closed flat.
Reserve Bank of India (RBI) Governor Raghuram Rajan said on Monday that India will be tested by capital outflows when interest rates start picking up in industrial countries.
Rainfall forecast for India has been lowered to 87% of the long-period average from 93% earlier due to a slow start to the season, the earth sciences minister said today. Jitendra Singh, Union Minister of State (Independent Charge) for Science & Technology and Earth Sciences, said there was no evidence of a drought this year and that the August-September monsoon rains were seen at 95% of the long-period average.
According to data released by the government, India's industrial production during June was at 3.4% while retail inflation in July based on the combined consumer price index (CPI) for rural and urban India was at 7.96% compared with 7.46% a month ago.
GAIL has bid for licenses to retail CNG and piped cooking gas in 14 cities including Bengaluru and Pune. The stock was the top gainer (6.02%) in the Sensex 30 pack.
Celkon Mobiles has tied up with Bharti Airtel to launch Millennium Dazzle Q44 phone.
Priced at Rs6,449, the phone will come with a free (Airtel) data pack of 500MB on 3G for two months. Bharti Airtel (1.67%) was the top loser in the Sensex 30 stock.
Eicher Motors (7.94%) was the top gainer in ‘A’ group on the BSE. It hit its 52-week high at Rs9,350 on the BSE. It posted good June 2014 quarter result. The net profit for June 2014 quarter is Rs133.24 crore as compared to Rs52.62 crore for the quarter ended June 2013. Sales increased from Rs381.82 crore for June 2013 quarter to Rs746.19 crore for the quarter June 2014.
Bhushan Steel (9.98%) was the top loser in ‘A’ group on the BSE. Today again it hit a new 52-week low on the BSE. It has been among the major losers on the bourses after its vice-chairman and managing director Neeraj Singal was involved in the bribery scandal involving Syndicate Bank. Now the lenders are going to have a meeting with the company on August 18 to decide on the future course of action.
US indices closed Monday in the green.
US President Barack Obama on Monday gave full US support for Iraq's president to form a new government hours after embattled Prime Minister Nouri al-Maliki rejected stepping aside for a successor. Iraq on Monday named Haidar al-Abadi as the new prime minister to end the eight-year rule of Maliki.
Except for Shanghai Composite (0.14%), Straits Times (0.09%) and Taiwan Weighted (0.11%) all the other trading Asian indices closed in the green. Jakarta Composite (0.37%) was the top gainer.
Singapore's gross domestic product rose an annualized 0.1% in the three months through June from the previous quarter, when it climbed a revised 1.8%, the trade ministry said in a statement today.
European indices were trading lower while US Futures were trading marginally higher.
According to Rajeev Chandrasekhar, market regulator SEBI should be bound by law to publicly disclose details of its consent agreements and cases, with a view to enhance the transparency, accountability and efficiency of its functioning
Rajeev Chandrasekhar, an independent member of the Rajya Sabha, who is also a member of the Standing Committee on Finance, has proposed some amendments in the Securities Laws (Amendment) Bill 2014. Participating in the debate on the Bill in the upper house, Mr Chandrasekhar said, market regulator Securities and Exchange Board of India (SEBI) should be bound by law to publicly disclose details of its consent agreements and cases, with a view to enhance the transparency, accountability and efficiency of its functioning.
The Parliament on Tuesday approved the SEBI Amendment Bill to empower the market regulator to crack down on ponzi schemes, though it will not have the authority to tap telephone conversations.
Sebi, however, will have the powers to seek call data records for investigation purposes, said Finance Minister Arun Jaitley while piloting the Bill, which was passed by the Rajya Sabha.
Lok Sabha had last week passed this Bill.
Mr Chandrasekhar, the independent MP, also called for a for a revision of the criterion for classifying collective investment schemes (CIS), introduction of safeguards against the SEBI’s power of attachment and an increase in sums of punitive fines for defaulters. He said, the definition of CIS should specify the number of investors, as this would ensure that the regulatory gap for these schemes is bridged.
Pointing out that the current penalties prescribed for defaulters under the bill were inadequate, Mr Chandrasekhar urged the government to consider raising these to Rs5 crore per day from the existing Rs5 lakh per day for insider trading related defaults. For defaults related to investor grievances, mutual funds, asset management companies and stock brokers, the penalties should be raised to Rs1 crore a day from the current Rs1 lakh per day, he said.
Key points made by the Mr Chandrasekhar are:
Criterion for Classification of Collective Investment Schemes: As per Clause 3 of the Bill, SEBI would have the power to regulate all schemes that have a corpus of up to Rs100 crore. Mr Chandrasekhar said there was a need to append to this clause, a specification on the number of investors. By specifying that all corpuses with to up to 500 investors are covered by the Bill, even smaller entities regularly pooling their funds under investment contracts would come under regulatory scrutiny.
He also highlighted that the definition of CIS under the Bill is too broad, and therein posed the risk of facilitating harassment of legitimate, small-scale businesses. This would have to be considered in the light of the fact that the only existing CIS entity that has registered with SEBI (since the CIS regulations were introduced in 1999) is yet to launch even a single scheme, he pointed out.
SEBI’s Power of Attachment: Mr Chandrasekhar also raised a concern regarding Clauses 21 and 35 of the Bill that relate to SEBI’s power of attachment. He asserted that the power to attach that SEBI has been bestowed with in this Bill must be moderated through a magistrate, just as in the case with search and seizure orders. This would serve as reasonable safeguards on SEBI’s power, he said.
Transparency in the Functioning of SEBI: Mr Chandrasekhar pointed to the need for the Act to introduce an additional clause that would ensure that all consent agreements and cases of the regulator are publicly disclosed. Disclosure, he asserted, must be made legal and binding on the regulator as this would go a long way in enhancing the efficacy and transparency of SEBI’s functioning.
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