Stocks
Nifty, Sensex weak, but a sudden rally is possible – Wednesday closing report
While Nifty looks weaker every day, the index is oversold and can put in a countertrend rally 
 
On Tuesday, we had mentioned that a close above 8,560 might mean a short rally in NSE’s CNX Nifty, while Bank Nifty has to close above 18,450 for the first sign that the downtrend is ending. The 50-share Nifty opened Wednesday above this level and immediately moved to the day’s high. Ahead of the March futures and options (F&O) expiry, Nifty witnessed a listless range bound session and moved lower. Each effort to revive only pulled the index further lower.
 
The S&P BSE Sensex opened at 28,216 while the Nifty opened at 8,569. Sensex moved to the low of 28,031 from the high of 28,250 and closed at 28,112 (down 50 points or 0.18%).  Nifty moved from the high of 8,574 to the low of 8,517 and closed at 8,531 (down 12 points or 0.14%). Bank Nifty moved in the green for almost the entire session however in the last few minutes of the trading the index was pulled lower.  Bank Nifty opened at 18,364 and moved in the range of 18,272 and 18,433 and closed 18,310 (down 21 points or 0.12%). NSE recorded a volume of 72.91 crore shares. India VIX fell 3.88% to close at 13.1425.
 
Minister of Urban Development M Venkaiah Naidu had said that a special purpose vehicle (SPV) will be created for each city to be included in the Smart Cities scheme. He said that the present deficit in physical, social, economic and institutional infrastructure will be bridged to make the cities more liveable and drive economic growth. He also said that Smart Cities and the new urban development scheme for 500 cities would be launched next month.
 
Ministry of Agriculture had said that a high-level committee has sanctioned Rs2,000 crore for year 2014 under national disaster response fund for drought affected areas of Maharashtra.
 
Standard & Poor's Ratings Services on Wednesday in its special report titled "India Credit Spotlight" said that the country’s reform drive and economic momentum could give plenty of growth opportunities to top corporates. It also said that sectors like utilities & infrastructure, metals & mining, oil & gas and telecom sectors still have high debt levels.
 
The Reserve Bank of India (RBI) on Wednesday signed a $400 million currency swap agreement with the Central Bank of Sri Lanka for three years that will allow the island nation to draw the amount in US dollars or euros in multiple tranches. The agreement is expected to further economic co-operation between the two countries and also further financial stability in the region.
 
Coming back to the Indian stock market, Sunrise Asian (9.44%) was the top gainer in ‘A’ group on the BSE. The stock hit its 52-week high today. It informed the Exchange that a resolution had been passed by the board of Directors in January 2015, authorising the company to make investment upto Rs13 crore. Further, the company has made investments of around Rs12.90 crore in various companies resulting in their becoming wholly owned subsidiaries of the company.
 
Ipca Lab (12.55%) was the top loser in ‘A’ group on the BSE. The USFDA issued an import alert on the company's manufacturing facilities at Pithampur and Silvassa. The company plans to make its plants, which are facing import alert, US FDA-compliant by December.
 
Tata Motors (1.56%) was the top gainer in the Sensex 30 pack. The board of directors approved 6 fully paid-up ordinary shares for every 109 fully paid-up ordinary shares, held as on the book closure date, or 6 fully paid-up 'A' ordinary shares for every 109 fully paid-up 'A' ordinary shares, held as on the book closure date. The shares will be issued at a price of Rs450 per ordinary share (including premium of Rs448 per ordinary share). Rights share issue has been priced at Rs450/share and Rs271 per DVR share.
 
NTPC (3.51%) was the top loser in the Sensex 30 stock. 
 
On Tuesday, US indices closed in the red. US Markit manufacturing purchasing managers index (PMI) unexpectedly rose to 55.3 in March from 55.1 in February. US consumer-price index climbed a seasonally adjusted 0.2% in February and new US homes sold at an annual rate of 539,000 in February to mark the best month of sales in seven years.
 
St. Louis Federal Reserve President James Bullard said that the Fed's zero-rate interest policy is no longer appropriate and that a rate hike this summer wouldn't strangle the US economic recovery. However, speaking at CityWeek in London yesterday, 24 March 2015, he reportedly warned the reaction to the first rate hike may be ‘violent', because of a mismatch in expectations.
 
Asian indices showed mixed performance. Hang Seng (0.53%) was the top gainer while Shanghai Composite (0.83%) was the top loser. European Union plans to impose anti-dumping duties from Thursday on imports of stainless steel cold-rolled sheet from China and Taiwan. European indices were trading in the red. US Futures were flat.

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COMMENTS

LALIT SHAH

2 years ago

It is to early to predict market as after 31st of march close will deside market future

Did you know LPG consumers get an insurance coverage?
LPG accident victims are covered for death and accident but its not Rs40 lakh as is being spread in social media messages and messaging apps 
 
As a consumer of liquefied petroleum gas (LPG) or cooking gas, you are protected for accidental death and injury in case the gas cylinder bursts. In their Citizen Charter, both Indian Oil Corp (Indane Gas) and Hindustan Petroleum Corp Ltd (HP Gas) maintain that "All registered LPG consumers are covered under an insurance policy taken by the public sector undertaking (PSU) oil Companies." There, however, is no mention of any amount either for the coverage or the annual premium. In addition, all LPG distributors also have third party liability insurance to cover losses in the event of an LPG accident, the Citizen Charter says.
 
An article in Lokmat Times says that consumers are insured to the extent of Rs40 lakh. Messages on social media and messaging apps are widely circulating this. This is not true. First, the amount of claims is not Rs40 lakh and second there is no special insurance policy or coverage for individual LPG customers. All PSU oil-marketing companies (OMCs) have two types of accident insurance policies, no fault liability and legal liability.
 
 
Here are the monetary values of coverage under no fault liability as stated on the Bharat Gas portal...
 
Personal accident cover of Rs5 lakh per person per event in case of death
It covers medical expenses of Rs15 lakh per event, maximum Rs1 lakh per person. Immediate relief up to Rs25,000 per person.
Property damage maximum Rs1 lakh per event at authorised customer’s registered premises.
It also covers customers who are supplied through reticulated system of LPG
 
Under the legal liability, the monetary value, as per myLPG.in, is...
Per event (accident) Rs50 lakh
Per person Rs10 lakh
Per year Rs100 crore
 
Last year in February, M Veerappa Moily, the then Minister of Petroleum & Natural Gas, in a written reply, informed the Rajya Sabha that LPG distributors act as principal and are responsible for taking insurance policy for accidents, including third party insurance cover to persons and properties.
 
"In addition, OMCs jointly take a comprehensive insurance policy called ‘Public Liability Policy’ for Oil Industries, covering established cases of LPG accidents, which include personal accident cover, medical expenses, property damage at authorized customers registered premises as per the provisions of the policy of the Insurance Company. This Public Liability Policy covers the whole country," he had said. 
 
Moily also clarified that OMCs do not provide any free insurance coverage with LPG gas connection in the name of the individual customers. 
 
According to reports, PSU OMCs pay Rs100 crore every year as annual premium for the insurance coverage.
  
So, how one can claim the insurance in case of accident?
 
In case of the unfortunate event of an accident, the customer must immediately inform the distributor in writing. 
The distributor then informs the concerned oil company and the insurance company about the same. 
The distributor is supposed to assist the customer in completing formalities of the insurance claims arising out of the accident.
In addition to the above, all LPG distributors also have third party liability insurance to cover losses in the event of an LPG accident.
 

User

COMMENTS

MUKUND SHAH

4 days ago

most of LPG cylinder supplier are collecting Rs. 150/- PER CONNECTION PER TWO YEARS as an inspection charger actually the sudha joshi commitee conclude her report... every dealer have to check the instalation once in 2 years to avoide accidents..the dealers took this as a tool to collect un-law full charges as an extra income is to an amount in thosand crores ' the petrolim minister must look in to it in the interest of civilians.. recently a person from BHARAT GAS visited my instalatiom. and demand Rs.150/- which i have denied.. the supplier discontinue my auto booking mobile no. and harressing me.. i complain to collector. as well as to H.O. of bharat gas,, i got my refile.. i request all LPG consumers not to give such paymemnts . and file a complain to minister to stop such looting activities and circulate this message to your neighboue.. friends and co-operate me on my mail--[email protected] and oblige THANKS

Mr Jitendra

2 years ago

I am a gas consumer since 1996 and I have never been informed by gas distributor whether such a insurance exists, what is the documentation process etc. None of website display the insurance claim forms, claim process and method in detail; after this article whether they have started displaying that I dont know.

Davidson D

2 years ago

With Supreme Court striking down applicability of Aadhar for govt.incentives/ subsidies, can the subscriber get aLPG cylinder at subsidised price instead of paying full amount and then getting the difference in bank account. Can anybody clarify?

Arghya polley

2 years ago

I know about the insurance but don't know about the process of claim. Please make it much more clear about the claim process in terms of hospitalization benefit. Can this benefit will be applied for your house help too?

Arvind Kumar

2 years ago

Good and valuable information. I think majority of the consumers are not aware of this. I have been using INDANE since 1970, but was not aware of any such provision.
Two queries :
a) Does the insurance policy cover only the registered owner of the gas connection or any/all members of his/her family ? In most of the cases, connection is registered in the name of male member of the house, but mostly ladies of the family or even the house-helps would be using the gas. So they are the persons who are at risk in the event of any mishap. Please clarify.
b) Is the consumer liable to pay any nominal premium or is it included in the cost of refill ?
c) Regarding, additional insurance policy cover which is to be provided by the Distributor/Dealer, is there any nominal premium payable by the gas consumer ?

Someone from Gas companies or Moneylife may please clarify on this.
Regards,

Arvind Kumar, Cochin, Kerala

vswami

2 years ago

item 2 being cover for medical expenses - no clarity !

'Per event' and 'third party' - wherever mentioned, means what?

Spectrum auctions are crucially flawed, says Kapil Sibal
 Trust an ex-telecom minister who is also a legal eagle -- an attribute he shares with current incumbent Ravi Shankar Prasad -- to point out a "crucial flaw" in the on-going spectrum auctions.
 
Kapil Sibal says this is "a government of hiccups, that doesn't think things through and has come up with a flawed auction design".
 
He says his mobile phone drops calls on an average of four times during the few kilometres journey from his Supreme Court office to his current home in central Delhi. 
 
"This didn't happen earlier" when he looked after the ministry, Sibal told IANS. "It is because telecom infrastructure is severely over-stretched, and with the government taking all the money upfront, there will be even less available for building infrastructure," he said.
 
The crux of the problem, he says, is in the current auction where high base prices may mobilise large revenues for the government and may be seen as successful. But there is a flip side to this in the form of resource commitments by companies to buy scarce spectrum and the added pressure on an acutely stressed larger financial system. 
 
"The telecom sector is hugely in debt to the extent of Rs.3.4 lakh crore. Now, in paying for the high spectrum prices, there'll be no money for investment in infrastructure," the former minister said.
 
For instance, state-run State Bank of India has lent around Rs.40,000 crore to telecom companies. 
 
In the current ongoing auctions, Idea Cellular is said to have already committed Rs.30,000 crore. It is followed by Vodafone, at around Rs.24,000 crore, and Bharti Airtel at Rs.21,000 crore. They are among the eight companies that are bidding for spectrum.
 
"With such massive commitments, the companies won't be able to pay back to lenders, who then have to restructure these loans. Such bids would lower return on equity and force firms to raise call costs," Sibal said. 
 
The load on the larger system can be gauged from the fact that non-performing assets (NPAs), or distressed debts, of public sector banks rose to 5.33 percent of total advances in September 2014, from 4.72 percent in March 2014. 
 
Stalled projects have been adding to banks' NPAs and the finance ministry's latest Economic Survey says that, as in December-end, these amounted to Rs.880,000 crore-worth. 
 
Analysts estimate a drop in earnings of up to 33 percent for Bharti Airtel and Idea Cellular in the 2017-18 financial year, owing to the cost of renewing their airwaves in the latest auctions.
 
He pointed out how, instead of consolidating defence and commercial spectrum into discrete segments, the government is selling tiny slices of bandwidth across a wide range, thereby creating scarcity and driving up prices. 
 
It comes down to a question of models and of choices being made, Sibal says. 
 
"Auctioning will bring you more revenues, but it is not the only model. A government can also not choose to take all the money upfront and opt for production-sharing model over time, like there is for oil exploration," he said. 
 
Underlining that a government's main objective should be to increase production and generate employment, Sibal said the industrial policies of many Indian states are based on giving land at subsidised rates for industry.
 
"If auction is the only model, why don't they auction school land... Punjab is a good example where for industrial development, a lot of land was given at very subsidised rates.
 
"There are many countries where resources are not auctioned. The Chinese boom wouldn't have happened if the government didn't give land free to enterprises so that they could invest fully in production," Sibal said. 
 
Lamenting that the days of cheap mobile telephony were over, which could put paid to the country's mobile telecom revolution, Sibal said these auctions had sacrificed public good, which is the objective of governance.
 
"I have never said that the government will not earn more by auctions, of course it will, but that cannot be the objective. The government has to work to achieve the maximum benefit to help achieve the ends of public good."

User

COMMENTS

Suketu Shah

2 years ago

Nice joke by Sibal.

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