In the absence of strongly positive news, the market may drift lower
We had mentioned in Tuesday’s closing report that if NSE’s CNX Nifty does not make a lower low and closes above 8,560, bulls will regain control.
S&P BSE Sensex opened at 28,472, moved in the range of 28,371 and 28,505, and closed at 28,443 (down 1 point). Nifty opened at 8,529, moved between 8,508 and 8,547, and closed at 8,538 (up 13 points or 0.15%). NSE recorded a volume of 99.63 crore shares. India VIX fell 0.22% to close at 12.3675.
The market awaited the HSBC India Services PMI for November 2014 during the opening session. Indian services companies rose from 50 in October to 52.6 in November, the seasonally adjusted HSBC India Services PMI Business Activity Index. Service sector activity grew in November, as new business rose for the seventh month running.
Responding to the monetary policy statement issued by the Reserve Bank of India (RBI), the finance ministry said that the government looks forward to the central bank supporting the revival of growth and employment.
A high-level official panel headed by Parthasarathi Shome in its report submitted to the government on Tuesday said that there is no instrument at present that captures details of cash withdrawals from bank accounts, other than savings accounts. The availability of such information would help the Income Tax (I-T) department widen its information base on the use of black money since excessive cash withdrawal can help it understand the extent of the cash economy. The Panel recommended revision of Rule 114E of the Income Tax Act to include in its ambit cash withdrawals exceeding specified amounts in a day from bank accounts other than savings accounts. Alternatively, the banking cash transaction tax should be reinstated as an effective administrative measure, the committee said.
Coming back to markets, Essar Oil (20%) was the top gainer in ‘A’ group on the BSE today. The company was in news after its proposed delisting process had been put on hold following the direction from market regulator SEBI.
Ceat (5.39%) was the top loser in ‘A’ group on the BSE. The company today filed its shareholding pattern as on 28 November 2014 after its QIP issue. Promoter holding in the company has reduced to 50.76% from 57.11% as on 30 September 2014. FIIs holding increased to 25.27% from 15.65% while DIIs and retail shareholding reduced to 6.52% and 17.45%.
BHEL (2.50%) was among the top two gainers in Sensex 30 pack. The state-run company announced that it has commissioned India's first phase shifting transformer for the Kothagudem Thermal Power Station Stage-VI in Telangana.
Dr Reddy’s Lab (2.43%) was the top loser in Sensex 30 stock. The stock had hit its 52-week high on Monday.
On Tuesday, US indices closed in the green. In November, car and light truck sales in the US were second highest in eight years, according to figures from Autodata. Sales rose to a seasonally adjusted annual rate of 17.2 million, up from 16.5 million in October and the best level since August. In economic news, data released on Tuesday, 2 December 2014 showed construction spending grew more than estimated in October. Construction spending rose 1.1% in October to a seasonally adjusted annual rate of $971 million.
Asian indices showed mixed performance. Taiwan Weighted (1.55%) was the top gainer while KLSE Composite (1.56%) was the top loser.
The HSBC China services purchasing managers index rose to 53 in November from 52.9 in October, HSBC Holdings PLC said today. New orders in the service sector grew at their fastest pace in 30 months, compared with a much weaker showing in factory activity, HSBC said. China's official non-manufacturing purchasing managers' index rose to 53.9 in November from 53.8 in October, data from the China Federation of Logistics and Purchasing showed today.
European indices were showing mixed performance while US Futures were trading marginally lower.
The European Central Bank (ECB) will meet Wednesday to discuss monetary policy.
The uniform Bharat Bill Payment System will also help track all payments being made in economy, including cash payments to utilities, schools, and telcos among others
The Reserve Bank of India has issued final guidelines for the Bharat Bill Payment System (BBPS), which will help consumers pay multiple bills like electricity, telephone and school fees at a single point of transaction.
“The BBPS is an integrated bill payment system offering inter-operable and accessible bill payment service to customers through a network of agents, enabling multiple payment modes, and providing instant confirmation of payment,” the RBI said in a notification last week.
The RBI-promoted payment retail gateway and the issuer of the Rupay debit Cards, the National Payment Corporation of India (NPCI) has been appointed as the nodal body.
The apex banks has set a Rs100-crore net worth and domestic registration as qualifying conditions for those seeking to be authorised collection agents. RBI Governor Raghuram Rajan had first announced the central bank’s intention to set up BBPS in the second quarterly monetary policy review last year, after which a committee was constituted to suggest the way forward.
Based on the recommendations, it posted the draft guidelines on the same on 7th August.
The move will help track all the payments being made in economy, including cash payments to utilities, schools, and telcos among others.
Stressing on the need to have such a system in place, the RBI pointed to a 2013 estimate, which said over 30,800 million bills amounting to Rs6.22 lakh crore are generated each year in the top 20 cities alone.
The final guidelines came a day after the RBI came out with the final guidelines for licensing of payment and small banks.
In June 2013, Cipla had granted global commercialisation rights for ‘Dymista’ nasal spray to Meda AB, except for certain geographies
Sweden-based drug maker Meda Pharmaceuticals Inc and Indian Cipla Ltd have sued Apotex Inc and Apotex Corp in US Federal District Court in Delaware to enforce patents of its allergy drug ‘Dymista’.
Cipla in a regulatory filing said, “We sued Apotex and Apotex Corp in Federal District Court in Delaware to enforce the Orange—Book listed patents covering ‘Dymista’ Nasal Spray.”
The company added that it has sued Apotex Inc and Apotex Corp “in response to Apotex’s submission to the US FDA of an abbreviated new drug application (ANDA), and accompanying Paragraph IV certification, seeking approval to market a generic version of Meda’s ‘Dymista’ prior to expiration of the ’Dymista’ patents.”
In June 2013, Cipla granted the global commercialisation rights for ‘Dymista’ to Meda AB except for certain geographies.
Commenting on the development, Meda CEO Dr J Thomas Dierks said: “Meda will vigorously enforce the ‘Dymista’ patent rights against Apotex and any other company who challenges these patents.
“The Complaint was filed within 45 days of receiving Apotex’s Paragraph IV certification notice, thus triggering an automatic stay preventing the FDA from approving Apotex’s ANDA for 30 months from receipt of the notice, unless ordered otherwise by a district court, the Cipla said.
“Meda has the exclusive licences to US Patent Nos. 8,163,723 and 8,168,620 covering the ‘Dymista’ composition and its approved uses, which does not expire until 2026,” it said.
Meda holds the new drug application (NDA) to manufacture and market Dymista in the US for the treatment of seasonal allergic rhinitis.