Stocks
Nifty, Sensex uptrend broken – Monday closing report
Nifty has to stay above 7,862 for the market to head higher again
 
We had mentioned in Friday’s closing report that Sensex, Nifty were still on an uptrend but that bulls were tiring. Also, Nifty would have to stay above 7,870 for the market to head higher. The major indices of the Indian stock markets closed with small losses on Monday. The trends of the major indices are given in the table below:
 
 
Depressed by negative Asian markets, along with unwinding of long positions, key indices of the Indian equity markets traded in the red during the late-afternoon trade session on Monday. The BSE market breadth was heavily tilted in favour of the bears -- with 1,580 declines and 952 advances. The key Indian indices had ended on a flat-to-negative note during the previous trade session on April 22. Initially on Monday, the indices had opened on a flat note as they were dragged lower by negative Asian markets and a weak close of the US exchanges on Friday. Besides, investors were seen cautious ahead of the US FOMC (US federal open market committee) meet slated for April 27-28. The US FOMC meet assumes significance as it will decide the future course of the US interest rates. A hike in interest rates is expected to lead away Foreign Portfolio Investors (FPIs) from emerging markets such as India. In addition, weak crude oil prices and upcoming monetary policy review by the Bank of Japan (BoJ) dented sentiments. Investors were seen reluctant to chase prices ahead of the futures and options (F&O) expiry and release of key quarterly results.
 
Foreign direct investment (FDI) inflow to India touched a record level of $51 billion during the April-February period of the last financial year, the government said on Monday. "We have had a record inflow of FDI in this country, more than $51 billion from April to February, and that is the highest ever," the Department of Industrial Policy and Promotion (DIPP) Secretary Ramesh Abhishek said here at an event hosted by industry chamber Ficci on intellectual property rights (IPR). Credit rating agency Moody's Investors Service said earlier this month that India's rising FDI inflows help reduce the current account deficit and also the external financing needs.
 
China's central bank on Monday pumped more money into the market to ease a liquidity strain. The People's Bank of China (PBOC) conducted 180 billion yuan ($27.6 billion) of seven-day reverse re-purchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future, Xinhua news agency reported. The reverse repo was priced to yield 2.25%, unchanged from Friday's injection of 240 billion yuan, according to a PBOC statement.
 
Shares of Mahindra & Mahindra Financial Services rose sharply today after the company reported a 12% rise in consolidated net profit for the quarter ended March 31, 2016. Its shares closed at Rs297.50, up 7.97% on the BSE.
 
Shares of software services firm Zensar Technologies today plunged nearly 8% after the company reported decline in consolidated net profit for the March quarter. Its shares closed at Rs946.00, down 5.06% on the BSE.
 
Shares of Motherson Sumi plummeted as much as 4.43% on the BSE on Monday after its customer Volkswagen (VW) posted a 4.1-billion-euros operating loss for 2015. Europe’s largest automaker VW took a 16.2 billion euros hit to pay for its diesel emissions test-rigging scandal. According to Credit Suisse, Volkswagen’s struggles are likely to impact earnings at Motherson Sumi. Its shares closed at Rs261.85, down 4.43% on the BSE.
 
The top gainers and top losers of the major indices are given in the table below:
 
 
The closing values of the major Asian indices are given in the table below:
 
 

User

MyHomeMaker: Another start up goes belly up?
The company has not paid at least 37 workers for the past three months, while customers on annual contracts have also been left in the lurch
 
MyHomeMaker, which calls itself a CRISIL-NSIC rated organisation seems to have gone belly-up leaving at least 37 skilled carpenters, plumbers, electricians etc without salaries for the past three to four months. Worse, we learn that people who enrolled for services and signed up for Annual Maintenance Contracts (AMCs) are likely to be left in the lurch. 
 
According to its website, My Home Maker was launched in October 2011 and employs 45 trained and qualified technicians and has four offices in Mumbai. It claims to have acquired 2,800 household customers. 
 
A group of these workers approached Moneylife Foundation for help in recovering their payments. One of them showed us a series of whatsapp messages to MyHomeMaker’s Managing Director Rodney Lobo, who has been responding with assurances that the payment will come in a week or two, since early March. 
 
Although the official contact numbers to the company are switched off, Moneylife connected with Mr Rodney Lobo on his mobile number. Mr Lobo said that that the company was making a loss and he was working at raising funds to pay the workers within a couple of weeks. 
 
The website lists three names as the core team: Rodney Lobo, an engineer, who has worked with organisations like Hughes Telecom, (Tata Teleservices), E-Serve International and Andromeda etc. in his 20 year career, Vijay Bhaskar Dixit, from BITS-Pilani, who last worked with United Health Group International in an 18-year career and Radhika Mozumdar, Director Communications who is listed as a management graduate from Jamnalal Bajaj.
 
The company has been offering Housekeeping plus repairs, maintenance, AC Repair, Appliance repair, mattress, pest control and deep cleaning contracts, with annual packages ranging from Rs7,499 to Rs24,999. Strangely, it also includes a Family Health Check up along with the Healthy Home Check Up. 
 
The website is very short on detail or who financed its operations. Ironically, it continues to flash testimonials of the good work done by many of the technicians who are without a salary for the past few months. 
 
A search on the National Consumer Complaints Forum reveals that many customers have been posting complaints about no service, or shoddy work – clearly with the trained technicians having deserted the company, poorly skilled workers have been deployed. One member has even threatened to sue. The complaints are available at http://www.complaintboard.in/complaints-reviews/my-home-maker-services-pvt-ltd-l190843.html  . At the same time, a google search also throws up paid promotional videos and reviews, which have probably fooled people into subscribing to the services. 
 
An article on moneycontrol.com probably explains the problem with this particular start up – it was started without raising funds! Mr Lobo is quoted as saying,  “At this stage we do not need external support, but if we achieve our targets for September (2013)‚ then I will look at external sources of funding and expand to tier  II and tier III cities”. Clealry, the targets have not been met and funding for start up advventures has begun to dry up fast. 
 
Meanwhile, “Skilled-India” comprising its 37-odd employees has been left in the lurch and without payments for the past few months.

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COMMENTS

Rajeshwari Krishna

5 months ago

I am trying to reach them from past 7 months . They have cheated many customers. I have paid Rs.10,000 annual subscription but the company not provided services. They can take care of employees what about us. who will pay to us. What basis CRISIL-NSIC has given good rating on the basis of their rating I paid annual fee. Mr.Rodney Lobo should pay our money back. What is the use of their directors educations. what they learnt from education is cheating public in the name of the company. I am filing a case consumer forum . I thought of lodging a compliant to local police but fearing of followup. promoters and directors not compromised on their life style. public are innocent victims cheated by so called educated people.

Sunil Rebello

10 months ago

ALL start ups are not going to make money.
it is a fact and we should accept this fact.
making money was never easy.
ideas with hard work and much luck is needed to make money.
but there is no place to hide when the economy world wide is in the down trend.
cutting cost and planning - help.

As a Service Provider Infosys has let down the country: Amitabh Kant, CEO NitiAyog in response to complaints about the mess at MCA21
As complaints continued to come in about companies finding it difficult to use the MCA 21 website and Mr Amitabh Kant, CEO of Niti Ayog, tweeted that as a service provider, “Infosys has let down the country”. 
 
Amitabh Kant, who has led Prime Minister Narendra Modi’s “Make in India” effort, has always made things happen because he is a bureaucrat who is different. Even as CEO of Niti Ayog, his willingness to go the extra mile and to wade in where needed to cut the red-tape has not diminished and his blunt-speak remains refreshingly intact too. 
 
 
On the other hand, the Ministry of Corporate Affairs (MCA), which is among the few ministries with no social media presence in the Modi-government, has remained unconcerned about several issues that affect ordinary people as well as professional (mainly Company Secretaries and Chartered Accountants) who have the difficult job of ensuring ‘online’ compliances on a system that has worked in fits and starts since 2013, when Infosys Limited bagged the contract and took over from TCS Ltd. 
 
Three years ago, Infosys tried blaming TCS for the fiasco, mainly through a hint and whisper campaign, but had no answers when Moneylife, which is tracking the issue since then, pointed out that none of the issues were raised during the long ‘handover’ period that lasted several months. 
 
This time too, Infosys, which is touted for its extraordinary management, has decided to brazen it out. Even as people posted screenshots of their problems accessing the site, here is what its communication official, Sarah Vanita Gideon mailed as the official response. “Infosys has upgraded the MCA21 system to run on the SAP platform, which went live on March 27, 2016.  Post the go-live, over 1,183 Indian companies have been incorporated and 1,647 Limited Liability Partnerships have been registered. In addition, since March 27, 2016 there have been more than two lakhs filings.
 
Looking at the data for the week gone by in 2015 during the same week, we had an average of 8,013 filings per day (excluding the weekend) and this week the average was around 9,759 - an increase of more than 20%.
 
As on date, the MCA21 portal is providing stakeholders all the requisite functionality”.
 
She goes on to suggest that people with difficulties probably do not know how to use the new website, and asks them to access “the e-form instruction kit” or look at “Frequently Asked Questions”. The only concession being made by Infosys is this: “During the first few days after migrating to the new system, there were some issues which have been sorted out.  There were some delays in the incorporation of some companies due to holidays. The Ministry has made arrangements to clear the pendency by deploying additional Assessment Officers. This will take around 15 days to get cleared.
 
Meanwhile we would like to state that the system is performing as expected.”
 
Does this mean that people need to get ready for a low-level of functionality and continued difficulties? What else can Infosys mean when it says, “the system is performing as expected”?
 
When we forwarded Infosys’s response to Mr Kant and this is what he had to say:
 
 
Unfortunately however, it is the Secretary, MCA who needs to act against Infosys and react to people’s problems. As we said, even over the weekend, people continued to struggle to access the website. 
 
 
You may also want to read:
 
 
 
 
 
 
 

User

COMMENTS

ramchandran vishwanathan

10 months ago

Infosys must not defend the matter. They must set things right & then clarify as to what the real issue was. I hope Vishal Sikka is listening

Ramesh Poapt

10 months ago

shocking revelation!-if not teething trouble! if TCS n Infosys can't succeed, truth must be something more interesting...A Kant's comments are acidic..and sorry IT state of affairs...TCS facing charges from upcountry...
pharma co.s are getting notices for quality standards....facts seem hidden than apperent...!

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