The support for Nifty is at around 5,230
After notching gains of around 6% last week on global cues, the market snapped its four-session winning streak and ended lower. In our Friday’s closing report we had mentioned that the shares may suffer a minor pullback that will see the Nifty reaching the level of 5,265. Today the index made a lower high, lower low and lower close on 60.81 crore share volume on the National Stock Exchange (NSE). If the market heads lower, the first support is at 5,230 on the Nifty.
Tracking weak market cues from Asia, the Indian market opened flat on profit-booking by institutional investors after logging good gains last week. The Nifty reported a loss of two points at 5,359 and the Sensex started the day at 17,806, down one point. The Nifty touched the day’s high within minutes of the opening bell with the Nifty at 5,360.
Trading sideways on the lack of any domestic cues, the market drifted lower for over an hour in early trade but buying in select stocks at lower levels lifted the indices as trade progressed. The Sensex scaled its intraday high in noon trade with the benchmark hitting 17,813.
However, the gains were short-lived as the indices drifted lower again in post-noon trade as the key European indices were trading in the red as nervousness crept in ahead of the G-20 leaders meeting in France this week. The benchmarks fell to their intraday lows at around 2.45pm with the Nifty skidding to 5,315 and the Sensex falling to 17,668. However, the market witnessed a small bounce-back and closed marginally above those levels, snapping its four-session gaining streak. The Nifty closed 34 points down at 5,327 and the Sensex finished the day at 17,705, a loss of 100 points over its previous close.
The advance-decline ratio on the NSE was 926:806.
The broader indices outperformed the Sensex with the BSE Mid-cap index gaining 0.37% and the BSE Small-cap index rising 0.21%.
BSE Fast Moving Consumer Goods (up 1.04%), BSE Bankex (up 0.72%) and BSE TECk (up 0.10%) were the sectoral gainers today. On the other hand, BSE Oil & Gas (down 2.09%), BSE Metal (down 1.97%), BSE Auto (down 0.98%), BSE PSU (down 0.80%) and BSE Capital Goods (down 0.60%) settled at the bottom of the index.
Hindustan Unilever (up 7.38%), HDFC Bank (up 1.36%), Hero MotoCorp (up 0.84%), Infosys (up 0.54%) and Tata Steel (up 0.49%) were the top Sensex gainers. The laggards were led by Hindalco Industries (down 4.11%), Sterlite Industries (down 4.10%), Tata Motors (down 3.76%), Jindal Steel (down 2.87%) were the top losers on the index.
The top performers on the Nifty were HUL (up 6.65%), Punjab National Bank (up 1.64%), Sesa Goa (up 1.58%), HDFC Bank (up 1.52%) and Hero MotoCorp (up 1.29%). The major losers were Hindalco Ind (down 4.29%), Sterlite Ind (up 4.03%), Tata Motors (down .97%), SAIL (down 3.40%) and Ambuja Cement (down 3.24%).
Markets in Asia settled lower on tepid corporate earnings reports and China’s move to continue with its curbs on property lending. Most indices in the region were also seen paring their gains which were seen last week on news that European leaders were sewing up a deal to diffuse the debt crisis.
The Shanghai Composite fell 0.21%; the Hang Seng declined 0.77%; the Jakarta Composite was down 1.02%; the Nikkei 225 fell 0.69%; the Straits Times tanked 1.72%; the Seoul Composite slipped 1.06% and the Taiwan Weighted settled 0.37% lower. Bucking the trend, the KLSE Composite gained 0.68%.
Back home, foreign institutional investors were net buyers of stocks worth Rs2,166.21 crore on Friday. On the other hand, domestic institutional investors were net sellers of equities worth Rs1,078.41 crore.
The country’s largest private sector lender ICICI Bank has reported a 22% jump in net profit to Rs1,503 crore for the quarter ended 30 September 2011 compared to Rs1,236 crore for the July-September quarter last fiscal. Total income of the Bank on a standalone basis increased to Rs9,897.17 crore from Rs7,887.03 crore The stock closed 0.25% lower on the NSE at Rs931.
With the Reserve Bank of India (RBI) freeing interest rate on savings deposits, mid-size private lender Kotak Mahindra Bank on Sunday said it will offer 6% interest on savings deposits above Rs1 lakh and 5.5% on those below Rs1 lakh from 1st November. The Mumbai-based lender with just 323 branches has also increased its base rate, or the minimum lending rate below which it cannot lend, by 25 basis points to 10%. The stock rose 0.46% to Rs512.75 on the NSE.
Greenply Industries has received the approval from its board of directors to increase the production capacity at its plywood unit located at GIDC Estate, Surendranagar in Gujarat from 73.50 lakh square meters to 96.24 lakh square meters per annum. The expansion is expected to be completed by September 2012. The stock gained 1.67% to close at Rs204.40 on the NSE.
In an unusual move, Reliance Industries issues a press release announcing Niira Radia's exit while Rata Tata calls her engagement "ethical"
It is not everyday that a company issues a press release to announce that a communications consultancy is retiring from business. Far from it. In fact, communication consultancies and their clients keep experimenting with each other with utmost dissatisfaction on both sides. So, it has come as surprise to observers of the business scene that Reliance Industries has gone out of its reticent way to announce the retirement of Niira Radia “from the business of communications consultancy and not renew any of her client mandates.”
Ironically the press release (once again on a Sunday) came into our mailbox from Kirby Furtado of NeUCom Consulting, a Niira Radia outfit substantially devoted to servicing Reliance Industries. The attached word document lists a Reliance spokesperson as the key contact. The text of the release is as follows:
“We regret the decision of Ms. Niira Radia to discontinue her association with the business of communications consultancy and not renew any of her client mandates. We have enjoyed a professional and fulfilling relationship with Ms. Radia and her team over the last three years. Ms. Radia's commitment has been very impressive and she has always led her team in a manner that tactical developments do not lead to a de-focus on the strategic issues.
However, we do appreciate and respect her wishes for a compelling need to focus on her family and personal issues. Ms. Radia leaves behind a very capable team and an indelible mark on the communications consultancy business. We wish her the very best for the future.”
Radia’s exit from the communications consultancy business caps months of muckraking over her role in promoting the interests of Tatas in telecom. Her intense high-pressure lobbying involving politicians, bureaucrats and mediapersons have openly been available on tapes that were leaked to the media. However, while politicians, businessmen and business executives have been held without a trial for months together, Radia, a key player in the 2G controversy has only been questioned a few times.
Separately, in a statement announcing her exit, Radia said: “To give precedence to my personal priorities of family and health, I have decided against renewing any client mandates and to exit the business of communications consultancy,” she said in a statement.
It is a painful decision, taken after much consideration and consultations, the statement added. “I thank our key clients for their understanding and mutual agreement to bring closure to this decision. I am also grateful to them for their support in taking my decision to its logical conclusion, offering assistance in mitigating the damages and thereby fulfilling all our existing contractual commitments,” Ms. Radia said in her statement.
Joining Reliance Industries in the unusual act of praising a lobbyist, the Tata Group chairman Ratan Tata said, “The Tata Group respects the personal wishes of Niira Radia in not renewing any client mandates. She has built Vaishnavi from scratch into the company it is today, often subordinating her personal and family interests in favour of her clients’ priorities.”
He added that Vaishnavi has had the PR mandate of the Tata Group since 2001 during which period it contributed significantly to the building of the Tata Brand. Vaishnavi’s engagement with the Group has been “ethical and satisfactory”, he added.
Meanwhile, announcing an alliance to share clients in public relations and public affairs portfolio, Rediffusion-Y&R and Edelman India, in an email, said that Rediffusion/Edelman unit will service the Tata group. However, it cannot be confirmed with the Tata group, which till yesterday was serviced by Vaishnavi Corporate Communications.