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.
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.
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.