Nifty, Sensex trying to find a foothold: Tuesday Closing Report

Watch if the market closes above today’s high for a short rally

While the market pared its gains in the second half of trade on a weak rupee, a minor bounce-back in the last hour ensured a positive close. Yesterday we had mentioned that if the Nifty manages to hold itself above the day's low we may the see the index going up to the level of 4,910. Today the index managed a higher high and a higher low, showing the benchmark's resistance to fall further. If this behaviour continues, we may soon see some gains. The National Stock Exchange (NSE) saw a lower volume of 49.71 crore shares.

The market opened in the positive tracking the firm Asian benchmarks in morning trade as G7 (Group of Seven) finance ministers are expected to hold a conference call later in the day to discuss ways to end the spiralling Eurozone crisis. The Nifty opened 21 points up at 4,869 and the Sensex opened above the 16,000 level at 16,065, a gain of 77 points over its previous close.

A minor bout of profit booking in early trade amid a fair amount of volatility saw the indices dipping to their intraday lows at around 9.40am. At the lows, the Nifty went down to 4,864 and the Sensex retracted to 16,023.

Bargain hunting at lower levels lifted the market higher in subsequent trade helping the benchmarks in the noon session. At this point, the Nifty touched 4,899 and the Sensex rose to 16,138.

The HSBC India Services Purchasing Managers Index (PMI)-an index of Indian services sector activity-bounced to a three-month high of 54.7 in May from 52.8 in April, driven by robust growth in new orders and optimistic business outlook.

A mixed opening of the European markets and an 18 paise fall in the rupee to 55.84 resulted in the market losing steam and paring its gains to touch the previous day's close in post-noon trade.

However, the market managed to claw back from the lows in the last hour and ensured a green close. The Nifty settled 15 points higher at 4,863 and the Sensex finished the day at 16,021, a gain of 32 points.

The advance-decline ratio on the NSE was positive at 848:750.

Among the broader markets, the BSE Mid-cap index gained 0.33% and the BSE Small-cap index rose 0.21%.

BSE Capital Goods (up 2%) topped the sectoral gainers. It was followed by BSE Bankex (up 0.82%); BSE Power (up 0.80%): BSE Oil & Gas (up 0.71%) and BSE Healthcare (up 0.39%). The top losers were BSE Realty (down 1.37%); BSE Fast Moving Consumer Goods (down 1.09%); BSE Consumer Durables (down 0.67%); BSE Metal (down 0.27%) and BSE Auto (down 0.21%).

The key gainers on the Sensex were Larsen & Toubro (up 3.08%); NTPC (up 1.98%); State Bank of India (up 1.66%); Hindalco Industries (up 1.60%) and BHEL (up 1.47%). The losers were led by Tata Motors (down 3.15%); Bharti Airtel (down 2.58%); ITC (down 1.89%); DLF (down 1.48%) and Coal India (down 1.09%).    

L&T (up 2.94%); Grasim Industries (up 2.72%); Reliance Infrastructure (up 2.71%); IDFC (up 2.57%) and Cairn India (up 2.33%) topped the Nifty. The main laggards were Ambuja Cements (down 3.29%); Tata Motors (down 3.17%); Siemens (down 2.64%); Bharti Airtel (down 2.31%) and ITC (down 2.22%).

Markets in Asia closed in the positive on hopes that the G7 would come up with plans to curb the debt problems plaguing Europe. Investors are also speculating that the US Federal Reserve might announce some initiatives on pressures in the jobs market.

The Shanghai Composite added 0.15%; the Hang Seng rose 0.40%; the Jakarta Composite advanced 1.73%; the KLSE Composite gained 0.33%; the Nikkei 225 climbed 1.04%; the Straits Times rose 0.50%; the KOSPI Composite surged 1.05% and the Taiwan Weighted settled 1.53%.

At the time of writing, the CAC 40 of France rose 0.47%; Germany's DAX was down 0.87% while FTSE 100 of Britain was closed for the Queen's Diamond Jubilee celebrations. On the other hand, US stock futures were trading in the red.

Back home, foreign institutional investors were net sellers of shares totalling Rs637.14 crore on Monday while domestic institutional investors were net buyers of equities aggregating Rs446.23 crore.

Wind turbine major, Suzlon Energy, has launched a new machine designed for low wind speed sites. Featuring a rotor diameter of 111 metres and a swept area of more than 9,500 square metres, the S111 is the latest generation of Suzlon's 2.1 MW fleet. The product was launched at Windpower 2012 in Atlanta. Suzlon Energy closed at Rs17.15 on the NSE, down 0.58% from its previous close.

Jet Airways is set to launch a second service between Mumbai and Kuwait from 8th June. The new service will operate four flights per week to the Gulf destination. With this launch, Jet Airways will now offer 11 flights a week from Mumbai to Kuwait. The stock declined 0.41% to close at Rs317 on the NSE.

IT services provider Subex has successfully completed the TM forum business metrics automation certification on their ROCware platform. The product has been successfully certified against business metrics automation interface version 1.0 and the revenue assurance metric groups in the Business Performance Measurement System Version 5.6. The stock gained 0.22% to close at Rs22.65 on the NSE.


Petroleum regulator acts strongly against erring firms; targets Reliance this time

After directing Indraprastha Gas to cut its tariffs and refund the excess amount charged to its customers, PNGRB has now asked the government to cancel the licence granted to RIL’s gas transportation arm

Oil and gas regulator, Petroleum and Natural Gas Regulatory Board (PNGRB), has asked the government to cancel licence granted to Reliance Gas Transportation Infrastructure (RGTIL) to lay four gas pipelines, saying the company has been dragging its feet on implementation of the 2,175-km pipelines, reports PTI.

Two months back the petroleum regulator had taken a strong view against Indraprastha Gas and had directed the city gas distributor to refund to consumers the excess amount charged since 2008.

Relogistics Infrastructure (Relog), a subsidiary of Mukesh Ambani's RGTIL, had in 2007-08 won government authorisation to lay Kakinada-Basudebpur-Howrah pipeline, Kakinada-Chennai line, Chennai-Bangalore-Mangalore pipeline and Chennai-Tuticorin line but physical work on these pipelines haven't yet started.

PNGRB has written to the oil ministry recommending cancellation of the authorisation over delays in implementation of the pipelines, a top official of the oil and gas regulator said.

"The board has taken a view of recommending cancellation of authorisation for the four pipelines. That has been communicated to the government," he said, adding the licences were given by the government prior to PNGRB began functional and so its cancellation can now be done only by the ministry.

Relog has cited uncertainty about availability of gas for not building the lines that as per the original authorisation were to be built in three years from date of all approvals. The three year period expires this month.

The official said Relog has also refused to furnish bank guarantee, which can be confiscated if the company did not complete the pipeline within the given timeframe.

In April this year, PNGRB slashed the network tariff and CNG compression charge Indraprastha Gas (IGL) billed on sale of piped cooking gas to households and CNG to automobiles in the national capital, by over 60% and asked the firm to refund to consumers the excess amount charged since 2008.
The Board in an 9th April order fixed IGL's pipeline network tariff at Rs38.58 per million metric British thermal unit (mmBtu) as against Rs104.05 per mmBtu proposed by the company. It also cut compression charge for CNG to Rs2.75 per kg from Rs6.66 per kg submitted by IGL. PNGRB said the new charges would be applicable from 1 April 2008.

While the Delhi High Court has quashed the order of PNGRB against IGL, the Board is set to move the Supreme Court against the high court's decision.


E-waste rules, more is required: Experts

Delhi-based Toxic Links, a key campaigner for sound management of E-waste said without monitoring and or evaluation mechanisms in place, nothing is going to change in the coming days

Managing electronic waste, (E-waste) such as old computers, CDs, television sets, mobiles, etc, is the one of the many environmental concerns of India, today. The E-waste Management and Handling Rules, notified last year by the ministry of environment and forests (MoEF), came into force from 1 May 2012. While by ministry's estimation, based on the survey carried out by the Central Pollution Control Board (CPCB), e-waste is expected to increase to about 8.00 lakh metric tonnes (MT) by 2012 from 1.47 lakh MT in 2005. Experts feel that more needs to done on the ground.

Delhi-based Toxic Links, in a release, said, "The absence of a detailed guidelines to support implementation could also be a bottleneck in implementation of these rules and requires immediate finalization and adoption by all state pollution control boards. The material is still freely flowing to the informal sector and their operations are running without hindrance. It is unlikely to change much in coming days as there are no monitoring or evaluation mechanisms currently in place from the regulators side."  Toxics Link has been a key campaigner for the policy and sound management of E-waste.

The E-waste rules, talk about the concept of Extended Producer Responsibility (EPR) where it mandatory for manufacturers of electronic and electrical equipments to collect of e-waste generated from the end of life of their products by setting up collection centres or take back systems either individually or collectively.

Satish Sinha, associate director, Toxics Link, says, "The brand may just get away by setting up only a symbolic collection system, as the rules do not specify the number of collection points or amount of collection. In a vast country like India where you need to reach out to urban as well as rural population, their "token action" will change nothing on ground. The brands have not announced any financial mechanism or incentives for the consumers to attract them to the new eco-friendly system."

However, Greenpeace feels that EPR is the only solution in managing E-waste. "Unless the producers are held liable, it is very difficult to manage the E-waste problem. One has to also look at the fact that there are toxic chemical used while manufacturing such material. Hence disposing them openly can be hazardous. EPR is the correct solution," explained Abhishek Pratap, senior climate campaigner, Greenpeace India.

According to the rules, collection centres are required to obtain authorization from the state pollution control board (SPCB) concerned within three months from the date of commencement of the rules. Similarly, dismantlers and recyclers are required to obtain authorization and registration from the SPCB concerned. E-waste generated is required to be sent to authorized and registered recyclers for environmentally sound disposal.

Collection of E-waste in India is largely done through scrap dealers. Hence monitoring is a huge task. Mr Pratap says, "There were deliberations on this particular issue. Many felt that the implementation of these rules will affect the employability of the scrap dealers. However, we feel that even they should come within the system. Only 5%-7% of the E-waste is collected in India. Scrap dealers are the best source to collect them."


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