Nifty, Sensex will stay weak – Tuesday closing report

Indian markets are now battling massive fear across the world. Rallies will be sold


We had mentioned in Monday’s closing report that Nifty and Sensex are making an attempt to stabilise and rise, but a rally will materialise only if Nifty closes above 8270.
Today the market opened lower and started to move sharply down. Every attempt to revive was met with further selling. The indices made the highest losses today since 8 July 2014.
Sensex opened at 27,181 and hit a high almost at the same time at 27,199. Nifty opened at 8,173 and reached up to 8,189. The indices moved lower to hit a low at 26,736 and 8,053. Sensex closed at 26,781 (down 538 points or 1.97%) while Nifty closed at 8,068 (down 152 points or 1.85%). NSE recorded a higher volume of 102.38 crore shares. India VIX rose 16.32% to close at 16.3075.
India's merchandise exports rose 7.27% to $25.96 billion in November 2014 over November 2013, data released by the Ministry of Commerce & Industry after trading hours yesterday showed. Imports jumped 26.79% at $42.82 billion in November 2014 over November 2013. The trade deficit rose sharply to $16.86 billion in November 2014, from $9.57 billion in November 2013.
India's gold imports in November reached 151.58 tonnes, according to data provided by India's trade ministry on Tuesday, marking a 38% increase from 109.55 tonnes in October.
A fall in oil prices favours airlines and Jet Airways (7.20%) was the top gainer in ‘A’ group on the BSE. The Indian rupee slumped to low of 63.45 per dollar in the early trade today. This is the weakest level in past 11 months. IT stocks were among the major gainers today. HCL Technologies (4.58%), TCS (3.40%) and CMC (2.48%) were among the top four gainers in the group. TCS was at the top in the Sensex 30 pack followed by Infosys (0.69%).
Reserve Bank of India on Monday eased rules for long-term loans by banks to the infrastructure sector and heavy industry. The RBI said only loans where the combined exposure by lenders in a single project is more than Rs 500 crore would be eligible under the eased regulations. Unitech (10.75%) was among the top two losers in ‘A’ group on the BSE.  Sharp fall in the crude oil price brought Sesa Sterlite (7.77%) to the bottom of the Sensex 30 stocks. 
On Monday US indices closed in the red. US manufacturing output recorded its largest increase in nine months in November as production expanded across the board, pointing to underlying strength in the economy. Factory production rose 1.1% after advancing 0.4% in October, the Federal Reserve said on Monday.
Most of the Asian indices closed in the red. Nikkei 225 (2.01%) was the top loser. China's flash manufacturing purchasing managers' index from HSBC Holdings Plc and Markit Economics fell to 49.5 for December, from 50 last month. It's the first time since May that the gauge has slipped below 50, the threshold between expansion and contraction.
In a move to try to arrest the rouble's crash, Russia's central bank made a drastic interest rate move overnight, raising its key rate from 10.5% to 17%.
European indices were showing mixed trading. US Futures were trading sharply lower.
The PMI data out of Germany showed multi-month lows for the services and composite PMIs, but the manufacturing PMI rose to 2-month high. France's manufacturing PMI fell to a four-month low.




2 years ago

This is exactly ihave mentioned in ur recent fortnightly market view.Ur editor says buy on shallw correction.On the same day i have posted comment inur site u may say sell on rallies. Today exactly it happened u r saying sell on rise.Now i request u to concentrate on ur longterm fundamental calls more.

CBI questions P Chidambaram in Maxis-Aircel deal investigation

P Chidambaram's questioning was in relation to his inappropriate clearance to the Aircel-Maxis deal, which he was not authorised to clear, according to the CBI


A PTI report said that CBI examined former Finance Minister P Chidambaram in connection with the Foreign Investment Promotion Board (FIPB) clearance given to Rs3,500-crore Aircel-Maxis deal in 2006.
The Finance Minister was competent for giving sanction only up to Rs600 crore and the Aircel-Maxis deal was way above that limit. The CBI had sought to examine ex-FM Chidambaram in this regard.
A deal of this size could only have been cleared by the Cabinet Committee on Economic Affairs headed by the Prime Minister and yet Chidambaram did not refer the deal to the CCEA.
When contacted, Chidambaram told PTI “they (CBI) took a brief statement from me on the FIPB approval. I repeated what I said in my press statement earlier. Nothing more than that.”
Chidambaram had said in September that the file regarding the case was put up before him by officials and he had approved it "in the normal course."
“In the Aircel-Maxis case, the FIPB sought the approval of the Finance Minister in accordance with the rules. The case was submitted through the Additional Secretary and Secretary, DEA. Both of them recommended the case for approval. Approval was granted by me, as Finance Minister, in the normal course”, Chidambaram had said in the statement.
He had said “I understand that the officials of FIPB who dealt with the matter have explained to the CBI that under the rules, as they stood then, the case required only the approval of the Finance Minister.”


FTC puts brakes on deceptive advertising in auto ads

With sliding auto sales among millenials and a looming holiday season, deceptive advertising in auto ads is bound to see an uptick


While consumers’ heads were a-spinning, important information went a-hiding. As a result, a car dealership chain in the Midwest has agreed to pay $3,60,000 to settle charges of deceptive advertising and consumers are reminded what to look out for in auto ads before they head down to the dealership.

Billion Auto and its affiliated advertising company used a barrage of “multi-sensory effects,” such as the rapid-fire transitions featured in the TV commercial embedded above, to deflect consumers’ attention away from crucial terms disclosed in the fine print, the FTC said in its complaint. Those terms included how low monthly payments were only tied to leases and not sales; how discounts were harder to come by than advertised; and how several offers carried significant added costs.


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