Nifty, Sensex to move sideways – Weekly closing report

Nifty has to strongly rally above 8365 for the rally to continue


The S&P BSE Sensex closed the week that ended on 7th November at 27,869 (up 3 points or 0.01%), while the NSE's CNX Nifty ended at 8,337 (up 15 points or 0.18%). Last week, we had mentioned that although the indices have made an all-time high it will continue to drift higher.

In line with our anticipation, on Monday the gap up opening of the Nifty was followed by the index hitting a new life time high. This was followed by the benchmark moving lower but trying to regain strength to move in the green. Ultimately the day ended with the benchmark closing flat. Nifty closed at 8,324 (up 2 points or 0.02%).

Finance Minister Arun Jaitley recently said that he foresees India’s GDP growth in the range of 5.5% to 5.9% for 2014-15.

Adjusted for seasonal influences, HSBC Manufacturing Purchasing Managers' Index (PMI) for October 2014 rebounded from September's nine-month low of 51 to 51.6 in October. Manufacturing activity picked up modestly amid stronger output and new order flows, particularly from overseas clients. However, firms continued to trim purchases and refrained from aggressive inventory accumulation, according to the survey. Indian stock markets were closed on Tuesday for Muharram.

On Wednesday the Nifty opened higher and managed making a new life time high for the fourth consecutive session, despite a decline during the mid-session (11.25am to 1.20pm). Nifty closed at 8,338 (up 14 points or 0.17%). Adjusted for seasonal factors, the headline HSBC India Services PMI Business Activity Index fell to 50 in October, from 51.6 in September. Despite rising for the sixth consecutive month, new work intakes in the Indian service sector increased at the weakest pace since May during October.

Finance Minister Arun Jaitley at World Economic Forum in New Delhi said that India is open to privatisation of certain loss-making public sector companies. He also said the government will soon unveil reforms for other natural resources sectors along the lines of coal block auctions. The government intends to open railways further to private investment, review tough land purchase rules and relax labour laws, Jaitley said, but insisted the government needed to build support for some of the measures.

The market remained closed on Thursday for Guru Nanak Jayanti.

On Friday, Nifty closed flat in line with what we had mentioned in our Wednesday closing report. Nifty closed at 8,337 (down 1 points or 0.02%). Prime Minister Narendra Modi recently mentioned that focus should be on strict monitoring of projects based on monthly completion targets for road, railway, shipping and civil aviation projects.

Market now looks ahead for the reshuffle of the cabinet that could take place on Sunday.

Among the Nifty stocks, the top five gainers for the week were Zee Entertainment (8%); DLF (8%); Dr. Reddy's Lab (7%); Axis Bank (7%) and Sun Pharma (6%) while the top five losers were Gail (8%); NMDC (8%); Coal India (7%); Hero MotoCorp (6%) and Mahindra & Mahindra (5%).

Of the 1,502 companies on the NSE, 896 companies closed in the green, 561 companies closed in the red while 45 companies closed flat.

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


ML Top sector


ML Worst sector


Real Estate










Non-Ferrous Metals




Lifestyle & Leisure


Auto Components






Understanding Wills and Nominations to avoid hassles

Vimal Punmiya, who spoke to a packed audience at a Moneylife Foundation seminar, explained the processes, rules, laws and need for making Wills that would help avoid confusion and litigation among inheritors


“I had a client, who used to live with each of his four sons for three months in a year. In addition, every time, each son would make him prepare a new Will. He ended up with about 32 Wills in 10 years. However, you can avoid all these hassles if you know the processes, rules, laws and need for making Wills,” says Vimal Punmiya, chartered accountant and Proprietor of Vimal Punmiya & Co.


Speaking at Moneylife Foundation organized seminar on “Understanding Wills and Nominations”, Mr Punmiya said, "Looking at how complicated and bureaucratic it is to deal with the legal and government machinery, it is better to have a clear Will to make it easy for those who come after you."


“At least after 50, one must make a Will. Making a Will has obvious benefits, but in my experience, it also gives psychological ease of mind. Any Wills and planning to reduce tax is OK but evasion is not. This is important to remember while making Will as per the recent judgement from the Supreme Court,” he added.


As always, the seminar drew a great crowd and more so, because of the speaker who conducted the seminar. Moneylife Foundation invited Mr Punmiya to speak to the audience and take their questions, and he graciously accepted.


To begin with, Mr Punmiya explained that with more and more nuclear families having increasing amounts of accumulated wealth and assets, Wills have become more and more important to people today. He took the audience through the basics, beginning with the laws that govern Wills. He explained how the law sees a Will and what exactly a Will means.


“If one does not make a Will, then his property will be inherited by legal heirs in accordance with the laws of inheritance applicable to him. However, most of the people would like to dispose of their property according to their own wishes. Thus, there arises the need for making one’s Will,” explained Mr Pumiya.


Many in the audience were eager to know what the implications of Wills executed abroad for their properties and assets held in India. Mr Pumiya addressed these issues and the question of Codicils came up. He clarified the terminologies of Wills and spoke about the different types of Wills. Having taken the audience through the intricacies of the types and procedures of Wills, he turned focus to the Nominations.


Often, Nominees become an important part of the whole story. He said that a nominee is like an executor, who is entrusted to manage the property or asset as per the nominator’s wishes after his death. However, a nominee cannot sell property unless he is a legal heir. Mr Punmiya also talked about the several procedures involved in transfer of property or other assets after the death of a nominator. In previous seminars, he had said, nominees are often required when special children are involved setting up a trust in the name of that child with a trusted executor is commendable.


Replying to a query, he said, "If you want the distribution to happen simply, that is possible. Or you can also make a will so that you can prevent sale of assets, which is also possible."


Mr Punmiya has been a Chartered Accountant for 39 years. He has written books on subjects like transfer of flats, stamp duty, registration, capital gains and has been a prominent speaker on topics of public interest like the Union Budget, I-T & Audit Provisions and Stamp Duty & Registration. He has held top-ranking posts at cultural organisations and is the recipient of prestigious awards from trade bodies and voluntary organisations.


Download a copy of the important points of Mr Punmiya's talk and FAQs about Wills created by Mr Punmiya himself, here.


Laxmikant Parsekar is Goa's new chief minister

Parsekar's name as leader was proposed by outgoing chief minister Parrikar and seconded by deputy CM Francis D'Souza. Parrikar resigned to join Narendra Modi cabinet


Laxmikant Parsekar, the health minister in Manohar Parrikar government is the new chief minister (CM) of Goa. Parsekar's name was proposed by outgoing chief minister Parrikar and seconded by deputy CM Francis D'Souza.


Earlier, Parsekar was elected unanimously at the legislature party meeting of Bharatiya Janata Party (BJP). This follows resignation from Parrikar as chief minister.


Parrikar is all set to join as minister in the Narendra Modi Cabinet at the Centre. According to reports he may be given charge of the Defence ministry, currently looked after by finance minister Arun Jaitley.


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