Nifty will continue to rally for a couple of days more
We had mentioned in Wednesday's closing report that the while Indian benchmark indices were close to a short-term bottom, they may not rally much. However, against our anticipation, the benchmarks surged on Thursday resulting in the highest percentage gain since 2 June 2014. Although the benchmarks opened in the negative, they soon moved to the positive and within a few minutes around 9.40am, shot up vertically, catching the shorts off-guard. In a span of eight minutes, the benchmarks made a huge jump. Between 9.35am to 9.43 am, the S&P BSE Sensex jumped 245 points and NSE's CNX Nifty rose 73 points. After this, there was a gradual up journey, which continued till the end when the benchmarks hit the day’s high and closed almost close to that level.
The BSE 30-share Sensex opened at 26,574 and moved from the level of 26,503 to 27,132 while NSE's 50-share Nifty opened at 7,951 and hit a high of 8,121 after hitting a low of 7,940. Sensex closed at 27,112 (up 481 points or 1.81%) while Nifty closed at 8,115 (up 140 points or 1.75%). NSE recorded a volume of 102.51 crore shares. India VIX fell 4.81% to close at 12.3250.
All the other indices on the NSE closed in the green. The top five gainers on NSE were Realty (4.90%), Media (2.80%), Auto (2.77%), PSU Bank (2.63%) and Nifty Midcap 50 (2.55%).
Of the 50 stocks on the Nifty, 46 ended in the green. The top five gainers were Hero MotoCorp (6.06%), LT (3.79%), DLF (3.76%), BPCL (3.74%) and Bhel (3.60%), while the only four losers were Infosys (1.04%), Hindustan Unilever (0.64%), Sesa Sterlite (0.09%) and Tech Mahindra (0.03%).
Of the 1,615 companies on the NSE, 1,247 companies closed in the green, 305 companies closed in the red while 63 companies closed flat.
The three day visit of Xi Jinping, the president of the People's Republic of China began on Wednesday. The visit is with the main aim of ramping up trade and investments, besides having discussions on substantive issues including the contentious border dispute.
Credit growth of scheduled commercial banks moderated further to single digit level of 9.7% as on 5 September 2014, from 10.9% growth a fortnight ago and 13.9% as at 31 March 2014. The bank credit growth was 9.68% as on 5 September, which was a five-year low. An incremental credit expansion till 5 September 2014 in the fiscal year ending 31 March 2015 so far stood at Rs1,46,800 crore, which shows sharp decline from Rs3,38,600 crore in the same period of FY2014.
Unitech (12.85%) was the top gainer in ‘A’ group on the BSE. Recently, CBI started examining a report by the Serious Fraud Investigation Office (SFIO) on the Tata-Unitech land deal worth Rs1,700-crore entered in 2007. The SFIO has alleged that the realty deal between the Tatas and Unitech in 2007 could have been meant for funding Unitech's telecom licence issued in January 2008.
Britannia Industries (2.35%) was the top loser in ‘A’ group on the BSE. It hit its 52-week high on Tuesday. GMDC (1.63%) which traded ex-dividend today was among the top two losers in the group.
Hero MotoCorp (5.57%) was the top gainer in the Sensex 30 pack. It again hit a new 52-week high. It has announced that it has entered into a MOU with the State Government of Andhra Pradesh to set-up a manufacturing plant in Chittoor district. The plant with an investment of around Rs1,600 crore will have a production capacity of around 1.8 million units every year.
Infosys (1.08%) and Hindustan Unilever (0.58%) were the only losers in the Sensex 30 stock. Infosys signed a global partnership with China's telecom equipment maker Huawei Technologies Co Ltd for offering cloud, big data and communication solutions to enterprise customers. Huawei and Infosys will explore setting up a joint lab in China to enable better delivery in all areas of the partnership.
US indices closed Wednesday in the positive. In a statement after a two-day meeting, US Fed announced a further $10 billion reduction in its monthly purchases, leaving the program on course to be shuttered next month. The Fed expects to keep rates low for a considerable time.
The latest economic data showed that US consumer prices fell for the first time in nearly 1-1/2 years in August and underlying inflation pressures were muted.
Except for Hang Seng (0.85%) and Seoul Composite (0.72%) all the other Asian indices closed in green. Nikkei 225 (1.13%) was the top gainer.
China's new-home prices fell in all but two cities monitored by the government last month as tight credit damped demand even as local home-purchase restrictions were eased. Prices dropped in 68 of the 70 cities in August from July, including in Beijing and Shanghai, the National Bureau of Statistics said in a statement today, the highest since January 2011 when the government changed the way it compiles the data.
European indices were trading in green. US Futures too were trading higher.
With its ample sunshine, India could easily add power generation capacity by using more solar energy and less fossil fuels.
Among the fresh bright minds that Rajiv Gandhi brought into government in the first flush of his landslide victory was PS Deodhar, who was appointed technology advisor to the prime minister and the chairman of the Electronics Commission of the government. Mr Deodhar was among those techies who worked at making panchayati raj a reality by harnessing technology for growth. In the early 1980s, Mr Deodhar was involved in building low-cost computers and making them available to people. He says, “I got Rajiv the ZX80 computer kit and later ZX81 and Spectrum with 128K RAM for hands-on computing.” Later, he made available an IBM PC XT clone at Rs10,000 via ET&T Corp, which was at half the prevailing price.
Now, at the age of 80, he believes that if solar energy were utilised in rural areas, technology could become a binding tool for the entire country by reaching areas that have no stable power supply. With this in mind, Mr Deodhar has made pioneering efforts in solar-powered gadgets through MITRAMAX Energy Private Limited.
He says, “Do you know that 350 million Indians (around 80 million homes) do not get electricity from the power grid at all? Most homes in India get bad quality of power.
Voltage swings from 150V to 270V causing bulbs to fuse, gadget failures and motors burning out.”
Extending the grid power to these homes is expensive and our government has subsidy schemes for companies to sell solar products at a reasonable price. This entire process is corrupt; agencies swallow the subsidy and sell sub-standard solar lights which work for just a few days. Worse, most of these are sold at Rs8,000 to Rs10,000 or more, to get higher percentage subsidy.
Solar power, Mr Deodhar says, is an ideal solution for them. With this in mind, he set up MITRAMAX Energy as an Indo-German joint venture company in 2009 which has created a hi-tech long-life product that is simple to use and maintenance-free. “I realised that one can give a better product much cheaper without even bothering about the government subsidy,” says Mr Deodhar. His focus is to enable the family to live safely and for children to study or play after dark and add a few more productive hours to their life.
SUNGRACE 25 has a 25Wp PV solar panel with a current controller that harvests peak power, the SOLARPOT that stores 168WH of energy and two 5W LED lights. One is a uniquely designed portable 5W LED light that can be used at home and while venturing outdoors with its built-in battery. The other is a bright 5W pendent bulb, USB port and a multi-plug cellular phone charger cable.
How is any of this relevant to this particular section of the magazine, which looks at issues beyond money? Well, because Mr Deodhar gives away hundreds of these products to NGOs who, in turn, give them to people in need. Interestingly, those who use these solar power gadgets have actually managed to save up to Rs200 a month on kerosene. He is also working with a professor of sociology to study the impact of solar power on the lives of people.
For those who can afford solar power, Mr Deodhar has started an advisory service at MITRAMAX Energy to tell them what kind of plant they should ideally purchase for their specific needs based on a complex energy calculation.
Mr Deodhar now wants to give each one of us the opportunity to participate in empowering rural people through solar energy. While solar lamp sells at Rs6,650 (list price), the company is willing to offer it at Rs5,000 to donors (for an order of 50 pieces) or at Rs5,300 for those who wish to make individual donations.
MITRAMAX is a commercial organisation with a social purpose, so its big challenge is to spread the word about the product without advertising, to keep the cost low. This requires public participation and support. You can help make this happen through donations or by telling people about these solar lamps.
Mitramax Energy Pvt Ltd
Deodhar Centre, 424, Marol Maroshi Road,
Andheri East, Mumbai 400059
Tel: +91-22-28290059, 28292055
E-mail : [email protected]
Despite revenues of just Rs78 lakh, the stock is up 7,579%. SEBI's market surveillance...