Stocks
Nifty, Sensex to move sideways – Weekly closing report

We had mentioned in last week’s closing report that Nifty, Sensex were showing no signs of tiring. The major indices of the Indian stock markets suffered a minor correction during the week and closed with small losses over last Friday’s close. The trends of the major indices in the course of the week’s trading are given in the table below:

Weak global cues and caution ahead of major domestic macro-data release pulled the Indian equity markets lower during the mid-afternoon trade session on Monday. According to market observers, investors were cautious ahead of the meeting between Finance Minister Arun Jaitley and top executives of public sector banks on the sector's non-performing assets (NPAs) issue, as well as the release of Index of Industrial Production (IIP) and Consumer Price Index (CPI) data later in the evening. On the NSE, there were 482 advances, 987 declines and 51 unchanged.

 
India's steel exports jumped by 69% in May to 0.641 million tonnes (mt) over the same month last year while imports were up by 2.4%, according to a Steel Ministry report. "Export of total finished steel was up by 102% in April-May 2017 to 1.387 mt over same period last year. Overall export in May at 0.641 mt was down by 14.1% over April 2017 but was up by 69% over May 2016," said the Joint Plant Committee report. India's consumption of total finished steel at 13.785 mt saw a growth of 4.2% in the first two months of the current fiscal over year-ago period, under the influence of rising production for sale. In the last month, overall consumption stood at 7.491 mt, up by 1% over corresponding month last year. In May, production for sale of total finished steel at 9.066 mt, registered a growth of 4.4% over the corresponding month last year. The production was, however, up by 7% over April 2017. Shares of Steel Authority closed at Rs57.20, down 0.61% on the BSE. Shares of Tata Steel closed at Rs507.35, up 0.21% on the BSE.
 
Shrugging off the previous day's losses, the Indian equity markets on Tuesday traded in the green on the back of firm global cues, broadly positive domestic macro-economic data and healthy buying in capital goods, banking and consumer durables stocks. According to the data released by the Central Statistics Office (CSO) after-market hours on Monday, India's annual retail inflation (Consumer Price Index) eased to a record low of 2.18% in May 2017, and the factory output growth (Index of Industrial Production) marginally slowed to 3.1% in April 2017. This, according to market analysts, provided a boost to the key equity indices. On the NSE, there were 698 advances, 700 declines and 47 unchanged.
 
Drug major Sun Pharmaceutical Industries on Tuesday announced that one of its wholly owned subsidiaries has received final approval from the US Food and Drug Administration (USFDA) for its generic version of ezetimibe tablets. According to Sun Pharma, the generic ezetimibe tablets -- used to reduce higher levels of cholesterol -- are therapeutic equivalents of Merck's Zetia tablets. "As per IMS, ezetimibe tablets had annual sales of approximately $2.7 billion in the US for the 12 months (which) ended April 2017," the drug major said in a regulatory filing to the BSE. The company’s shares closed at Rs536.45, up 0.62% on the BSE.
 
Lending major State Bank of India (SBI) said that its paid-up capital has increased to Rs863.20 crore after its recent share placement through QIP. "Pursuant to the allotment of equity shares in the issue, the paid-up equity share capital of the bank increased from Rs810,98,57,182 to Rs863,20,50,393 comprising 863,20,50,363 equity shares of face value of Re1 each," the company informed the BSE in a regulatory filing. Last week, the lending major had allotted more than 52 crore shares of face value of Re1 each at a price of Rs287.25 per equity share aggregating to Rs14,999 crore to 61 "successful eligible investors". SBI shares closed at Rs283.80, down 0.44% on the BSE.
 
The Indian equity markets on Wednesday closed on a flat-to-positive note on the back of healthy wholesale price index (WPI) data and buying in capital goods, oil and gas as well as energy stocks. Official data released during market hours showed that India's annual rate of inflation based on wholesale prices decelerated in May to 2.17% from 3.85% in April as food prices eased. However, investors remained cautious ahead of the outcome of two-day US Federal Reserve's rate-setting meet later in the evening. On the NSE, there were 662 advances, 793 declines and 64 unchanged.
 
Telecom major Reliance Communications (RCom) Chairman Anil Ambani voluntarily decided to forego his salary and commission from the company during the current financial year as part of its "strategic transformation programme", RCom announced on Wednesday. Reliance Group Chairman Anil D. Ambani voluntarily decided to draw no salary or commission from RCom in the current financial year. The decision was part of the company promoters' commitment to the Strategic Transformation Program, the RCom release said. The company’s shares closed at Rs18.30, up 1.39% on the BSE.
 
Following their global peers, the Indian equity markets fell during the mid-afternoon session on Thursday, a day after the US Federal Reserve hiked its benchmark rates. The rate-hike assumes significance as it is expected to lead FPIs (Foreign Portfolio Investors) away from emerging markets such as India, and is also expected to dent business margins as access to capital from the US will become expensive. Consequent to the late-night US rate hike, the Asian markets traded broadly in the red and eroded Indian investors' confidence in the highly expensive conditions in the domestic stock markets. Selling pressure was witnessed in banking, oil and gas and capital goods stocks. On the NSE, there were 837 advances, 805 declines and 311 unchanged.
 
The US Federal Reserve raised its benchmark interest rates for the third time since December and unveiled plans to start trimming its balance sheet, even as news of the Fed's relatively hawkish stance provoked caution in early trading in the Indian equity markets, which were trading flat on Thursday morning. "In view of realised and expected labour market conditions and inflation, the FOMC (Federal Open Market Committee) decided to raise the target range for the federal funds rate to 1% to 1.25%," the American central bank said in a statement after concluding its two-day monetary policy meeting. This rate was a 25 basis points increase over the current one of 0.91%.
 
The Indian equity markets traded on a flat-to-positive note during the mid-afternoon session on Friday, with buying witnessed in consumer durables, FMCG (fast moving consumer goods) and banking stocks. According to market observers, weak global cues and selling in healthcare stocks eroded investors' risk-taking appetite. At the close of trading, the major indices ended flat over Thursday’s close. Bank Nifty closed with small gains over Thursday’s close.
 

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No plan to issue next list of defaulters any time soon: RBI
Following the Reserve Bank of India (RBI) identifying 12 accounts that are responsible for 25 per cent of non-performing assets (NPAs), the central bank on Friday said it has no plans to come out with a next list any time soon.
 
"If you look at it (NPAs), RBI had a detailed circular. Twelve cases have been referred for resolution by Insolvency and Bankruptcy Code (IBC). Other (bad loan) cases, banks are encouraged to resolve in six months' time," RBI Deputy Governor S.S. Mundra said.
 
"Where is the question of quickly coming out with the second list," he said.
 
Mundra was speaking on the sidelines of the 3rd national summit -- Bankers Borrowers Business Meet 2017 -- organised here by the Associated Chambers of Commerce and Industry of India (Assocham).
 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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Abu Salem, five others guilty in 1993 Mumbai blasts, one acquitted
A Special TADA Court on Friday found six persons guilty in the March 1993 Mumbai serial blasts case, including deported mafia don Abu Salem, while one accused was acquitted.
 
Those found guilty are: Abu Salem who was extradited from Portugal in 2005, Mustafa Dossa who was deported from the UAE, Mohammed Tahir Merchant alias Tahir Takla, Karimullah Khan, Riyaz Siddiqui and Feroze Abdul Rashid Khan, said Public Prosecutor Deepak Salve.
 
Another prime accused, Abdul Qayyum has been acquitted of all the major charges, Salve told mediapersons. He had accompanied Salem to the home of film star Sanjay Dutt to deliver arms and ammunition and was arrested on February 13, 2007.
 
Special TADA Judge G.A. Sanap has fixed the next hearing on June 19, when the Special Court will fix the date for the arguments on the quantum of sentence for the guilty, he added.
 
All the accused found guilty and the one who was acquitted were present before Special Judge Sanap when the verdict was read out in the open court.
 
Salem was charged with supplying the arms and ammunition, including the deadly RDX, which were used in the blasts.
 
The accused are individually or jointly held guilty of the major charges, including conspiracy, terror, supplying arms and ammunition, killing, damage to public and private properties, in the blasts carried out at 13 locations, that killed 257 persons.
 
According to Salve, the serial blasts were carried out in revenge for the demolition of the Babri Masjid in Ayodhya on December 6, 1992, which were followed by the two-phased bloody communal carnage in Mumbai in December 1992 and January 1993.
 
The prosecution said that members of the Dawood gang along with their local henchmen Tiger Memon, the Dossa brothers and others hatched a conspiracy to carry out the terror acts in Mumbai.
 
The nefarious triple objectives were to "overawe" the government of India, strike terror among the people, alienate sections of the people to create communal discord among the masses, besides other intentions.
 
For perpetrating their heinous acts, the conspirators acquired and smuggled deadly arms and ammunition, detonators, hand grenades and nearly three tonnes of the deadly RDX (Research & Development Explosive - OR Cyclotrimethylene Trinitramine), which was used for the first time after World War II on such a scale.
 
Earlier, in the same case, the Special TADA Court had convicted 100 accused, including Yakub Abdul Razak Memon who was hanged on July 30, 2015.
 
Actor Dutt, who was let off the terrorism charges but tried and convicted under the Arms Act, served his full sentence and was released from jail in February 2016.
 
At the end of a marathon trial lasting over 13 years, in September 2006, 12 accused were awarded the death sentence, of which 10 were commuted to life by the Supreme Court later. Another 20 accused were given life sentence.
 
On the afternoon of March 12, 1993, a series of 13 blasts in quick succession went off at various locations in Mumbai city and suburbs, killing 257 people and injuring over 700 others.
 
The prime targeted locations included the Air India Building, Bombay Stock Exchange, Zaveri Bazar, then existing five star hotels, Hotel SeaRock and Hotel Juhu Centaur, and others leading to damage to public and private properties worth Rs 27 crore.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

 

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