PM chairs a high-level meeting with cabinet and top officials to review the progress of the MMonsoon. Contingency plans are being drawn in response to IMD predictions about Monsoons.
With deficient rainfall across the country, the PM today chaired a review meeting that was attended by the Ministers for Home, Finance, Agriculture, Food and Consumer Affairs and Water Resources; Cabinet Secretary, Principal Secretary to Prime Minister and Additional Principal Secretary to Prime Minister.
A press release from the PMO said that Officials from the India Meteorological Department (IMD) apprised the Prime Minister of the monsoon situation. They said that though the monsoon has been delayed, rainfall is likely to improve substantially in the months of July and August
Agriculture Minister Radha Mohan Singh was quoted as saying that, “Monsoon was delayed by a week. However, there will be a good rainfall after July 7 according to Met Department forecast. Impact of El-nino is also expected to be subdued than what was expected earlier.”
The Met Department had earlier predicted that the monsoon was expected to be below normal at 93% of the long average. In response to concerns about deficient rainfall, The Ministry of Agriculture has prepared a contingency plan for more than 500 districts.
The role and responsibility of Hyderabad office of Sebi "shall extend to the areas falling under the territorial jurisdiction of the state of Telangana and state of Andhra Pradesh"
Market watchdog SEBI said its local office in Hyderabad will oversee the regulatory affairs in Andhra Pradesh as well as the newly created state of Telangana.
"Consequent upon the formation of the state of Telangana, the local office so established (Hyderabad) shall continue to look after the regulatory aspects of investor protection, facilitating redressal of investor grievances, financial and investor education and such other functions as may be assigned from time to time..," SEBI said in a notification.
According to SEBI, the role and responsibility of Hyderabad office "shall extend to the areas falling under the territorial jurisdiction of the state of Telangana and state of Andhra Pradesh".
The Mumbai-based Sebi had established a local office at Hyderabad last year as part of its efforts to decentralise its functions.
A further short decline in Nifty may be on the cards
While the US indices and other Asian indices closed in the positive, the indices back home closed in the negative. Sensex opened at 25,218 and moved lower to 25,021 after hitting a high at 25,309 and closed at 25,063 (down 251 points or 0.99%). Nifty opened at 7,554 and hit a high at 7,570 from where it moved to the level of 7,481 and closed at 7,493 (down 76 points or 1.00%). The NSE recorded a volume of 109.57 crore shares. India VIX fell 3.33% to close at 17.7025.
Among the other indices on the NSE, the only gainers were Media (1.84%), Pharma (0.38%), Auto (0.07%) and MNC (0.04%). The top five losers were Energy (3.36%), CPSE (3.30%), PSE (2.76%), Realty (2.5%) and Commodities (1.99%).
Of the 50 stocks in the Nifty, 15 ended in the green. The top five gainers were Wipro (1.69%), Tech Mahindra (1.53%), L&T (1.21%), HCL Technologies (1.13%) and Dr Reddy (1.12%). The top five losers were ONGC (5.28%), DLF (3.31%), Reliance Industries (3.16%), NTPC (2.65%) and United Spirits (2.51%).
Of the 1,576 companies on the NSE, 673 companies closed in the green, 854 closed in the red, while 49 companies closed flat.
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday deferred a decision on the revision of natural gas prices by three months. The government said that comprehensive discussions are necessary on the issue of natural gas pricing and the gas pricing guidelines. The government said that consultations will be held with all stakeholders and public interest will be kept in mind.
Oil Minister Dharmendra Pradhan reportedly said on Wednesday that there is no proposal to raise kerosene or LPG prices.
The government announced extension of concessional excise duty on automobiles, capital goods and consumer durables by six months up to 31 December 2014. Congress led United Progressive Alliance (UPA) government, in the Interim Budget for 2014-15 in February this year, had reduced excise duty on small cars, two wheelers, scooters and commercial vehicles to 8% from 12%. Excise duty on sports utility vehicles (SUVs) was cut to 24% from 30% and that on mid-sized and large cars was cut to 24/20% from 27/24%. At that time, the reduction is excise duty was restricted till 30 June 2014 as an interim relief measure for the auto sector.
The move of the CCEA affected gas utility stocks, which pushed down ONGC (5.89%), which was also the top loser in the ‘A’ group on the BSE and the top loser among the Sensex 30 stocks.
Emami (3.67%), among the top four gainers in the ‘A’ group on the BSE, recently entered into an agreement with M/s. Royal Hygiene Care Pvt. Ltd., Mumbai for acquisition of its brand “She Comfort” a quality brand of sanitary napkin products.
US indices closed in the positive on Wednesday.
A report showed that US gross domestic product shrank 2.9% in the first quarter, the worst reading since 2009 – due to extreme winter conditions.
Orders for business equipment climbed in May, a sign that corporate investment is helping revive the economy after slumping at the start of the year.
All the Asian indices closed in the positive. Hang Seng (1.45%) was the top gainer.
European indices were trading flat with positive bias while US Futures were trading flat with negative bias.