While Nifty may not decline sharply, chances of a strong immediate rally look unlikely
We had mentioned in last week’s weekly report that the indices may struggle to make fresh highs. The market opened higher but fell immediately. After an effort to stay in the positive, up to 11.30 am, finally the indices moved into the negative. The indices plunged into the negative and closed near the day’s low.
S&P BSE Sensex opened at 26,960 while CNX Nifty opened at 8,064. Sensex moved to the low of 26,727 after hitting a high of 26,995, while Nifty which also hit the high at the beginning of the session at 8,064 moved lower to hit the low of 7,986. Sensex closed at 26,753 (down 98 points or 0.37%) while Nifty closed at 7,992 (down 23 points or 0.29%). NSE recorded a volume of 66.73 crore shares. India VIX rose 5.07% to close at 13.5150.
The market may remain volatile this week ahead of the expiry of the October futures & options.
The Election Commission of India on Saturday, 25 October 2014, announced the schedule for General Elections to the Legislative Assemblies of Jharkhand and Jammu & Kashmir. The election polls in both the states will take place in five phases from 25 November 2014 to 20 December 2014. Poll results of both the states will be announced on 23 December 2014.
The recent move of the government, clearing defence projects worth Rs 80,000 crore, will be beneficial to the players in the sector. One such player, Pipavav Defence (5%) was among the top four gainers in the ‘A’ group on the BSE.
Jindal Steel & Power (7.90%) was among the top two losers in ‘A’ group on the BSE. The stock was pulled lower on the news that the Central Bureau of Investigation has begun a probe into how Congress leader Naveen Jindal's company got permission from the environment ministry under UPA Minister Jayanti Natarajan in 2013, to mine iron ore in Asia's largest sal forest in the Naxal-affected Saranda area of Jharkhand.
Gail (0.85%) was among the top three gainers in the Sensex 30 pack. The stock hit its 52-week high today. It is on the look-out for a strategic partner for its Rs 3,108 crore floating LNG import terminal at Paradip in Odisha.
Hindustan Unilever (4.75%) was the top loser among Sensex 30 stocks. It posted a net profit of Rs 988.16 crore for the quarter ended September 2014 as compared to Rs 913.80 crore for the September 2013 quarter. Its revenue increased from Rs 6,892.64 crore in September 2013 quarter to Rs 7,639.33 crore in September 2014 quarter.
US indices closed in the green on Friday.
The Asian indices trading today showed a mixed performance. Nikkei 225 (0.63%) was the top gainer while Jakarta Composite (0.96%) was the top loser.
China's economic growth will slow to 7.2% in the current quarter, down from the previous three months as domestic demand weakens, said Song Guoqing, an academic member of the People's Bank of China monetary policy advisory committee. The nation's economy will probably expand 7.3% next year, Song said at a forum in Beijing on 25 October 2014.
European indices were trading lower, while US Futures was also trading in the red.
European Central Bank said most lenders passed stress tests. It said however, that 13 banks in the eurozone — including four in Italy and two in Greece — showed shortfalls in their own money, or capital, after a review devised to uncover hidden problems and test their ability to withstand a sharp recession or other crisis.
The PM's official Facebook page posted a Diwali photo without the originator's permission and the photographer has gone public
Prime Minster Narendra Modi is known for his crack social media team, but this time it seems to have goofed. The PM's official Facebook page posted a Diwali photo without the originator's permission and the photographer has gone public
Prime Minister Narendra Modi's official Facebook Page had a beautiful photographs of a chain of diyas which were sure to brighten up the Diwali of his many followers. Bimal Nepal, a Boston-based photographer says the PM stole his photograph and used it without permission or attribution, forget about payment – now that is one nasty fly in the in the oil of the Diwali diya.
On 21st of October, Bimal Nepal posted on his official Facebook page the following picture, with the message “Greetings on Dhanteras. May Lord Dhanvantari bless us with prosperity, joy and good health.”:
PM Modi's post, as usual, quickly went viral. Following Bimal Nepal's appeal for help, some of his friends started contacting newspaper editors and interviews and news reports popped up in all kinds of places.
He said on his account that, “This photograph has been used by Indian Prime Minister Narendra Modi in his Facebook page. I shot this photo in my dining room last year with the help of my daughter Abina. She set up the candle lights on Diwali in our home in Cambridge, Massachusetts.
I am truly honoured! My greatest question and concern is - there is no credit for the photographer?! What will happen to the so called © copyright issue? He did not ask for the permission. Any suggestion?”
The post however, is still up on the PM's account. A user tagged Nepal in a reply to the post, and this reply is the top-rated comment on the post which already has close to half a million likes and 45,000 shares. On the other hand, Bimal Nepal's official page has 10,000 likes in total. For all the hue and cry, it may actually end up being a huge win for the photographer himself. Surely, his copyright must be respected, but if not any other way, this has made him a star with Modi fans on the internet, which is quite an audience.
For a politician used to a great deal worse than copyright infringement accusations, this might be a slightly confusing issue to react to. Surely, as the Prime Minister he need not react to trivialities like these, but this highlights the need for better professionals, who understand copyright laws, to be handling the PM's social media presence. Let us hope that in fairness, the photographer's grievance is address immediately.
A PTI report said that PMO sources on the 24th of October, said that the photo was used by several websites and that it was sent by a creative agency. The creative agency was reported to have said that since the photo was publicly available and was free to download on many legitimate websites, there was no need to take permission for using the photo. However, the same report also said that the photo was used for wishing the PM's followers and not for profit, the PMO sources were also reported as saying that they had contacted the photographer by e-mail when they came to know of the issue and are yet to receive a response.
Owing to Haryana government’s likelihood to probe into DLF-Robert Vadra land deals, DLF makes its way into the list of top losers in the stock market
With the Haryana government gearing up to investigate land deals in the state, the DLF stock has already slumped 8.38% since the market opened this morning, currently at Rs 110 (at 4.10 PM). The deals were entered into during the regime of the previous Congress led government.
Moneylife has previously written about whether DLF deserves to even be a Nifty stock anymore. Read the story here
With the BJP winning a majority in the recently held state elections, the Times of India quoted senior Cabinet Minister Anil Vij as saying, "We would hold a probe into the acquisition of 70,000 acres during the 10-year regime of Bhupinder Singh Hooda government. We would inquire whether the land was used for the purpose it was acquired. It would be probed if there was any violation in acquisition to benefit any individual.”
The government has, however, not laid down any procedures or formalities for carrying out the exercise yet.
In an order issued on 13 October, SEBI banned DLF, its founder chairman and five other senior officials associated with the company, from assessing the capital market for the next three years. The company challenged this order in the Securities Appellate Tribunal, and sought an interim relief in order to redeem its mutual funds worth Rs 2500 crore and to launch a domestic debt sale to the tune of Rs 5000 crore. The hearing is due on 30 October.
It was penalized for key information disclosure failures at the time of its 2007 market listing and the stock has already been under pressure since then.
Earlier in July, the former Chief Minister of Haryana, Mr Bhupinder Singh Hooda, legalized the controversial land deal between Vadra owned Skylight Hospitality and DLF.