No rally in sight: Tuesday Closing Report

The market is poised to break down if oil price does not come down

The domestic market opened higher, tracking the Asian markets that gained momentum after a flattish start. The Sensex added 90 points and opened at 17,929 while the Nifty was up 26 points at 5,391. Early gains came from IT, auto, realty and capital goods sectors. However, the indices touched their intra-day lows with the Sensex falling to 17,879 and the Nifty at 5,376. The market shrugged off the early hiccups and started on a gradual northward journey. The indices touched their intra-day highs at around 11.30am with the Sensex breaching the 18,000-mark once again at 18,041 and the Nifty crossing the 5,400 levels at 5,427.

The market gave up some gains and was in a narrow range till the late session when selling pressure pushed it lower again. Finally the market settled in the green, snapping its three-day decline. The Sensex ended at 17988, up 149 points and the Nifty closed 49 points higher at 5,414. The advance-decline ratio on the National Stock Exchange was 978:654.

The broader indices were also part of the rally today with the BSE Mid-cap index advancing 0.79% and the BSE Small-cap index gaining 0.54%.

All sectoral gauges closed in the positive with the BSE Realty index (up 2.19%) emerging as the top gainer. It was followed by BSE Auto (up 1.53%), BSE Healthcare (up 1.10%), BSE PSU (up 1.08%) and BSE Consumer Durables (up 0.97%).

Maruti Suzuki (up 3.58%), DLF (up 3.17%), Bharti Airtel (up 2.68%), Jaiprakash Associates (up 2.05%) and HDFC (up 1.68%) were the major Sensex gainers. The noteworthy losers on the index were Jindal Steel (down 0.31%), TCS (down 0.28%) and ICICI Bank (down 0.27%).

Asian markets, with the exception of the Jakarta Composite, ended in the green on news that workmen were progressing in their efforts to restore power to the quake-crippled power plants in northern Japan. However, reports of radiation from the damaged plants leaking into the sea stoked fears of contamination of marine life along the Japanese coast. Analysts asserted that the country will rebound in the second half of this year from the catastrophe that stuck Japan earlier this month.

On the other side, news of airstrikes on Libya and fears of the turmoil spreading to other countries in the Middle East renewed concerns of a disruption in crude supplies.

The Shanghai Composite rose 0.34%, the Hang Seng gained 0.76%, the KLSE Composite added 0.01%, the Nikkei 225 jumped 4.36%, the Straits Times climbed 0.64%, the Seoul Composite advanced 0.51% and the Taiwan Weighted was up 0.48%. On the other hand, the Jakarta Composite lost 0.03% in trade today.

Back home, foreign institutional investors were net sellers of stocks worth Rs97.02 crore on Monday, whereas domestic institutional investors pumped in funds worth Rs47.98 crore in the equities segment on the same day.

Vedanta Group firm Sesa Goa (1.51%) today said it has acquired the assets of the upcoming steel plant of Bellary Steel & Alloys (BSAL), put on the block by a consortium of lenders led by IFCI, for Rs220 crore.

The assets of the acquired company have been transferred on "as is where is" basis to Sesa Goa effective today, a statement said, adding Sesa Goa is conducting a detailed assessment to determine the best way forward for commissioning the steel plant at the earliest.

The Income Tax (I-T) Department has issued a notice to Mahindra Satyam, the new brand identity of Satyam Computer Services (up 0.22%), to pay up Rs616.53 crore in taxes. The company said the Central Board of Direct Taxes, under Section 119 of the Income Tax Act, 1961, rejected various petitions filed by the company seeking reliefs for reopening of past assessments for the assessment years 2003-04 to 2008-09; determining the actual income based on the findings of investigating agencies; and granting a stay on recovery proceedings for the said assessment years.

Jyothy Fabricare Services Limited (JFSL), a subsidiary of Jyothy Laboratories (up 2.26%), today it has fully acquired 100% stake in Delhi-based laundry player Diamond Fabcare Private Limited (DFPL) for an undisclosed sum. The acquisition comes within a week of JLL acquiring a 14.9% stake in Henkel India for Rs 60.73 crore.


Customers need to be vigilant as bankers are turning 'bhayanker', says Ravi Subramanian

The banker and author of three best-selling books says banks and relationship managers often indulge in cross-selling to earn more revenues and, therefore, the customer has to be more careful while dealing with them

"A customer can protect himself from falling into the hands of mercenary bankers by being alert, vigilant and at the same time doing due diligence," said Ravi Subramanian, banker and author, at an interactive session organised by Moneylife Foundation in Mumbai on Tuesday.

Speaking on 'How to see through the hard-sell of banks', Mr Subramanian said, "Bankers become 'bhayankar' when they fail to deliver what they have promised and try to hard-sell products on which they earn more money to the gullible customer."

Mr Subramanian has written three best-selling books, 'If God Was a Banker', 'I Bought the Monk's Ferrari' and 'Devil in Pinstripes', all from an insider's perspective from his nearly two-decades career with foreign banks.

Asking the audience whether they had a clue about the long queues at banks, or why customers calling were made to hold on for a long time, he explained this as a deliberate ploy to cross-sell by bank employees with the result that the end-customer suffers.

Mr Subramanian took up numerous examples of hard-selling by banks, like selling gold. He said it was not wise to buy gold from banks, as not only is gold cheaper (by 4.5%) from a branded jeweller or the neighbourhood goldsmith (14%), but banks do not buy the gold back if ever the customer required the money.

Mr Subramanian is an alumnus of IIM-Bangalore, who has worked with Citibank and Hong Kong and Shanghai Banking Corporation (HSBC).

He also talked about new fund offers (NFOs) that are often pushed by agents as "very good". "Banks and relationship managers often push NFOs, not because the new offer is very good, but because they can earn more money by churning. In any case, banks make more money, sometimes as high as 5% to 6%, from the asset management companies (AMCs)," Mr Subramanian said.

The workshop was well-attended, with several Moneylife Foundation members among the participants. The session turned out to be very interesting with Mr Subramanian addressing questions raised by the audience right through his presentation.



Avinash Murkute

6 years ago

Absolutely right. Take an example. Kotak Bank says on it website that Interest Certificate shall be provided in 3 working days. Perhaps there days are of 300 hours a days and hence even after 15 days and 4 reminders, they are still in a process of co-ordinating. This is feather in the cap of Mr. Manian of this Bhayankar Bank, kotak bhayankar.


6 years ago

Mr.Ravi is absolutely right. Banks are the major party responsible for mis-selling of financial products.

sanjay shah

6 years ago

banks should not b allowed to market financial product and gold, because they are not capable of providing after sales services,. they are targetting HNI OR CUSTOMERS WHO R UNDER OBLIGATION OF BANK BECAUSE OF LOAN / OD / CASH CREDIT ETC. AND DOING BLACK MAILING BUSINESS. POOR CUSTOMER HAS NO CHOICE OF PRODUCT.

Dr S S Sangwan

6 years ago

Bankers become Bhayanker or traditional Banias who exploit the non vigilant customers. The epectations from banks have increased after the the slogan of Financial inclusion. In most of the banks, the insurance and MF products are also sold by the front line employees who generally befool and even presurise customers. To keep the old basis of trust between banker and customer relation, such products should not be dealt by the employees dealing with banking activities of deposits and loans.

Dr S S Sangwan

6 years ago

Bankers become Bhayanker or traditional Banias who exploit the non vigilant customers. The epectations from banks have increased after the the slogan of Financiaa inclusion. In most of the banks the insdurance and MF products are also sold by the the front line employees who generally befool and presurise customers. To keep the old relation of trust such products should not be dealt by the employees dealing for banking activities of deposits and loans.

Bhavesh Damania

6 years ago

Hi Moneylife team,
Can you pl share more details, as shared by Mr.Subramanian, of how "Bhayankar" a Banker can be.. A banker knows all the tricks played by the insiders!!!


6 years ago

I have number of accounts with private bank/s. Many times in the past RMs have tried (read hard sell) selling me products such as 'Structured Products', plain vanilla, or Nifty linked, etc. etc., ULIPs, other Insurance products (endowment, etc. NOT TERM PLAN), PMSs, MF NFOs (not ongoing scheme), IPO financing and more BUT I have always refused to subscribe (except for PMS where I fell prey) and that is why the RMs DO NOT CONTACT ME AT ALL. When I have problem with the functioning of the a/cs, I contact RM.

As regards Credit Card, I am of the opinion that one should not get lured by free cards from any and every bank. Rather one should opt for the same from your own banker because in case of problem you can approach the RM or higher ups (assuming you have the names, numbers of them in advance). Secondly, the best way to avoid any problem in credit card is to pay on time. When you do not (due to personal reasons or whatever) that is when the differences in charges, etc. erupt. Also, do not use Credit Card for cash withdrawal. For that you must keep Debit Card of the same bank. Also, be aware that if you use your credit card for 2 lacs or more in a year, then you have to furnish the information as AIR in your Annual Income Tax Return. So, better you keep track of your expenses and keep it below 2 lacs (if possible). If you need to spend more, then use multiple credit cards (of family members. Ensure that it is not an add-on card of yours) and for accounting purpose, you can always reimburse.

In today's time one should use the technology to your advantage and do most of the transactions without visiting the bank. Such as, monthly family cash withdrawal from ATMs, investments in IPOs through ASBA, MFs through respective fund house web-site, utility payments through autopay bill facility, online purchases through Netcard (this is great because you save yourself from probable frauds. It is a virtual Credit Card with a specific amount. If you do not use it then it gets credited back into your account). Even requests such as New Cheque book, etc. can be made online. Thus reducing physical involvement.


Suresh Ramasubramanian

In Reply to Prakash 6 years ago

this is exactly what I do. Do everything online and the first time the RM contacts you tell him

1. You do your investments yourself
2. You arent in the habit of churning your investments

3. Your entire 1 lakh 80c is already taken up with 70k rupee PPF, some pure term policies, kid's school fees etc. So no you dont want insurance either

4. Your bank loan product doesnt match what SBI offers (no penalty on early closure, no penalty on prepayment)

etc etc. They'll pretty soon, within the first five or six minutes, get the message and go off to chase some other guy who is willing to spend his money on high commission NFOs

Sandeep p

6 years ago

My friend's dad who is an HNI has the best trick.

every time a banker chases him for money, he nonchalantly ask for straight a minimum of 7% cut, the pesty banker immediately stops chasing him.

Once a banker asked him to invest 5 crores in a PMS fund, he asked for brand new car i10 to be delivered infront of his door for his daughter from a leasing company, the banker chase stopped immediately.

I tried myself when relationship manager tried to buy single premium policy for 1 lac, i asked for 10k in cash, the relationship manager didnt chase me again.

Give them the dose of their own medicine.


Ravi Sharma

In Reply to Sandeep p 6 years ago

Hi Sandeep, I completly disagree with what you do and to so called your HNI uncle. This is one mentality that has been perculated in us only because of the bad practises done by LIC agent. Their come no chance of push back, because bankers ( Relationship Manager )dont get commission but we get Salary for which we really work very hard.

Secondly if you or your uncle would have enough knowledge about the market and specific instruments which can give you 100% assurity of not loosing money and give maximum returns you should do it by urself.

I am SORRY but because of some culprit RMs you cant blame the entire RM community (or for matter BAnkers)



In Reply to Ravi Sharma 6 years ago


Touch your heart and answer yourself(not here)that RMs do really live up to the term RELATIONSHIP MANAGER ? Even the Bank or Broking firms(management) do not want them to manage/help/assist client, but they simply want RMs to suck client to their advantage, make big money and enjoy.. If you have spent some time in RMs job I am sure you cant deny a bit of this truth!! The mantra is "Kitna revenue kiya". No wonder RMs are the most handsomely paid profile in Financial services sector..

Sandeep P

In Reply to Ravi Sharma 6 years ago

Hi Ravi,

Its just a trick to get pesky RM's off the back.

I went to get 6 months bank statement for my Visa application from the bank, the guy saw the balance in my account and called my "relationship manager" , whom i didnt know exist.

I was in a hurry to leave, but the person in the bank wasted 30 mins of my time, and tried to sell me an single premium policy, without me asking for it, thats jen i was pissed and asked for 10 k just to get him off my back and leave. I never went to bank to buy any ULIP. I went to get my statement.

It was just a trick, which leaves bad taste in the mouth, and anyways, it pissed my RM, but i made friends with my wallet by not buying it.

Amalaraj Marian

In Reply to Ravi Sharma 6 years ago

Dear Ravi,
Dear Mr Ravi I am not questioning your integrity. But when you see that what is happening on the ground level is more a common phenomena than an exception. Then if Mr Sandeeps uncle has devised a way to put of such unwelcome intruders and if he is successful, i feel you should not have any qulms. Any which ways i am sure sandeep was presenting his side of the prespective.
But what has appeared in the print would fall in place almost 99% of the times. I have a few of my RMs from the products side who have off the record have said that the bank RMs are difficult because they resort to taking cash payouts from the product RMs also what do we have to say now? Salary to hai + incentive bhi hai aur uspe under the table bhi joro se chal raha hai.

Alert Citizen

In Reply to Amalaraj Marian 6 years ago

Be careful of private banks, they even debit the dormant / non operative accounts of the depositors, by forging the customers signatures. You have to check your savings account statement carefully and also verify your term deposit on quarterly basis.

Some leading private banks even cancelled the unclaimed PO / DD and invested in Insurance / MF.

Investors should be alert

EGoM allows sugar exports of up to 5 lakh tonnes

India's sugar production is estimated at 24.5 million tonnes in 2011-12 sugar year (October-September) against 18.8 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes

New Delhi: An Empowered Group of Ministers (EGoM) on food today decided to allow sugar exports of up to 5 lakh tonnes as production this year is set to exceed the domestic demand, reports PTI.

Earlier, the food ministry had allowed and notified 5 lakh tonnes of export under Open General Licence (OGL). The decision was, however, kept on hold in view of high inflation and the matter was soon referred to the EGoM.

The EGoM, headed by finance minister Pranab Mukherjee, met today and decided to allow normal sugar exports not exceeding 5 lakh tonnes, sources added.

India's sugar production is estimated at 24.5 million tonnes in 2011-12 sugar year (October-September) against 18.8 million tonnes in the previous year. The annual demand is pegged at 22 million tonnes.

The government had earlier allowed mills to meet their export obligations of about one million tonnes under the Advance Licence Scheme (ALS).

Agriculture minister Sharad Pawar had earlier written to finance minister Pranab Mukherjee stating that sugar export should be allowed to prevent a situation of cane arrears to farmers.




6 years ago

please sand latast updated news

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