Stocks
Nifty, Sensex trendless - Thursday closing report
As long as Nifty is above 8,600, the trend favours the bulls
 
We had mentioned in Wednesday’s closing report that Nifty has to stay above 8,580 for the rally to continue. The major indices in the Indian stock market were range-bound and closed with small percentage gains of less than 1% each. The medium term trend of the major indices remains upward.
 
 
 
The top gainers and losers of major indices are given in the table below:
 
 
The logjam in parliament and anxiety surrounding a rate hike in the US subdued the Indian equity markets on Thursday, with a barometer index closing the day's trade in the red.
 
A day after it gained 323 points, the 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed the day's trade in the red, down 134.09 points or 0.47%.
 
The wider 50-scrip Nifty of the National Stock Exchange (NSE) fell by 43.70 points or 0.51 percent at 8,589.80 points. The Sensex touched a high of 28,578.33 points and a low of 28,315.37 points in the intra-day trade.
 
Key economic data revealed a recovery in the US economy just before the FOMC (Federal Open Market Committee) meet on July 29, which will give further clues as to when the rate hike might take place there. With higher interest rates in the US, the FPIs (Foreign Portfolio Investors) are expected to be led away from emerging markets such as India.
 
The FOMC meet is followed by the future and options (F&O) expiry in the Indian equity markets on July 30. The Indian monetary policy review by the Reserve Bank of India (RBI) is scheduled for August 4. All these upcoming events are making the markets volatile.
 
The markets also expects a rate cut by the RBI during its monetary policy review as it may be the last time in this calendar year to cut lending rates before inflation spirals up again and the US Fed decides on its own rates in September.
Sector-wise, healthy buying was observed in consumer durables, automobile and oil and gas stocks. However, banks, capital goods and healthcare scrip came under intense selling pressure.
 
The S&P BSE consumer durables augmented by 177.19 points, the automobile index gained by 94.18 points and the oil and gas index rose by 48.69 points.
 
The BSE S&P bank index declined by 155.51 points, the capital goods index receded by 125.10 points and healthcare index was lower by 108.55 points.
 
Major Sensex gainers during Thursday's trade were: Tata Motors, up 3.11% at Rs.401.35; Dr Reddy's Lab, up 1.62% at Rs.3,910.35; Mahindra and Mahindra (M&M), up 1.25% at Rs.1,358.35; Maruti Suzuki, up 1.11% at Rs.4,235.65; and NTPC, up 0.77% at Rs.138.25.
 
The major Sensex losers were: Lupin, down 5.23%  at Rs.1,728.60; Bajaj Auto, down 5.02% at Rs.2,487.75, Tata Steel, down 3.58% at Rs.270.30, Tata Consultancy Services (TCS), down 1.59% at Rs.2,487.95; and Bharti Airtel, down 1.54% at Rs.432.60.
 
Among the Asian markets, Japan's Nikkei was up by 0.44%, China's Shanghai Composite Index rose by 2.44%, and Hong Kong's Hang Seng gained by 0.46%.
 
The closing values of the major Asian indices are given in the table below:
 
 
All European markets were flat as well as US pre-market futures.
 

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SEBI bans 900 entities for tax evasion from capital markets
"We have given all the details to the CBDT (Central Board of Direct Taxes) and we have told them that they should probe them," SEBI Chairman UK Sinha told reporters
 
Market regulator SEBI (Securities and Exchange Board of India) has clamped down on a large number of organised syndicates who had set up 'shops' to convert black money into legitimate-looking funds through the stock market platform. This is a tax evasion racked aggregating to Rs5,000-6,000crore.
 
While more than 900 entities have been banned from capital markets by the SEBI, it has also referred these cases to the Income Tax Department for further investigations.
 
"We have banned more than 900 entities and my guess is that the tax avoidance that has happened in these cases is more than Rs5,000-6,000 crore," SEBI Chairman U K Sinha said.
Giving a "complete picture" on this menace, the SEBI chief said, "In any country or in any market, there are always people who are trying to find loopholes and take advantage. These are the people who have criminal intent. They are not here to help in the growth of the country. They work with a desire to corner money with criminal intentions."
 
"We have given all the details to the CBDT (Central Board of Direct Taxes) and we have told them that they should probe them," Sinha told reporters.

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COMMENTS

manhar kothari

2 years ago

SUCH PROACTIVE ACTION BY SEBI IS WELCOME.

States should monitor chit fund firms, says SEBI
Market regulator Securities and Exchange Board of India (SEBI) on Thursday said the state governments need to play a pivotal role to control and monitor the spread of chit fund and ponzi firms.
 
"This is a matter which cannot be controlled by one central agency - there is a three-tier approach required. The first level has to be state government. It is not possible for RBI or SEBI or any other agency," SEBI chairman U.K. Sinha told media persons here.
 
He was speaking on the sidelines of an event organised by Bharat Chamber of Commerce.
 
He said the state governments in various parts of the country have passed their own legislations on depositor protection to safeguard their interest and prevent any malicious acts from any chit fund firms.
 
"In that act, they have given wide powers to the district magistrate and the superintendent of police," he said.
 
Sinha referred to the recently amended act in Odisha, which has made it compulsory for the firms to get registered with the district magistrates before raising any money.
 
"If you are defaulting, then the district magistrate can impound all the assets, they can even issue arrest warrants and things like that," he said.
 
Sinha said a total of 20 states have enacted such laws to contain and monitor chit fund firms.
 
He said collections or fund raising exceeding Rs.100 crore from these firms needs to be monitored by the SEBI while collections less than Rs.100 crore need monitoring by the state governments.
 
"It is not possible for RBI or SEBI or any other agency. SEBI has got 700 employees and how can we work in close to 700 districts of the country?" he said.
 
Sinha also said there has to be coordination between the central agencies like the Reserve Bank of India or SEBI and the state government.

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