In the early trade, rupee fell 16 paise to Rs51.50 against the dollar on sustained demand for the greenback from banks and importers. Dealers said the dollar demand from some banks and importers, mainly oil refiners, weighed on the rupee’s fortunes
New Delhi: The finance ministry today said the ability of the Reserve Bank of India (RBI) to intervene in the forex market to arrest the fall in rupee is limited, even as the Indian currency declined to a 32-month low of Rs51.50 per US dollar in the early trade, reports PTI.
“RBI's ability to intervene in forex market is limited”, Department of Economic Affairs secretary R Gopalan told reporters here.
In the early trade, rupee fell 16 paise to Rs51.50 against the dollar on the Interbank Foreign Exchange because of sustained demand for the American currency from banks and importers.
The domestic currency had tumbled 44 paise to Rs51.34/35 per dollar in the previous session on heavy demand and firmness of the American currency overseas.
Dealers said the dollar demand from some banks and importers, mainly oil refiners, weighed on the rupee’s fortunes.
They said concerns over foreign fund outflows from the domestic equity market and dollar demand from state-run oil refiners reduced the rupee’s attractiveness.
The Speaker has been served a Rs2 crore bill for illegally occupied bungalow; another list of rent-defaulters for government bungalows surface
Moneylife has earlier talked about parliamentarians who stay put in government bungalows even after their tenure has expired, and default on the rent http://www.moneylife.in/article/parliamentarians-finish-term-stay-put-in-government-bungalows-dont-pay-rent/20994.html
The Speaker of Lok Sabha, who is in charge of looking after accommodation for members of Parliament (MPs), has also almost Rs2 crore in unsettled dues for the bungalow which she has not handed over, even though the allocation has been cancelled.
RTI activist Subhash Chandra Agrawal has accessed the information through a query to the directorate of estates. Surprisingly, the bill has been served to Meera Kumar as a ‘family member of late Indrani Devi’ and not as the occupant of the unauthorised bungalow at 6, KM Marg; which also houses a trust dedicated to her late father and former Parliamentarian Babu Jagjeevan Ram.
Ms Kumar, however, is not the only defaulter. Several others people have defaulted on government bungalow rents, too: AN Tiwari has dues worth Rs4.71 lakh, Ram Awadesh Singh has Rs5.38 lakh, Mrityunjaya Nayak with Rs3.21 lakh, Abdul Ali Azizi with Rs1.97 lakh, Amitabh Bhattacharya Rs2.04 lakhs, Pratibha Pande Rs43.6 lakh in dues and Pravir Kumar with Rs2.61 lakh in dues. JS Sharma and Dr Buta Singh, though occupying unauthorised quarters, do not have any outstanding dues.
Mr Agarwal has expressed dissatisfaction with the piecemeal way the he has been given the information. “The same CPIO vide her earlier recent RTI response dated 25 October 2011 provided altogether different list of rent-defaulters for the same/similar query. Learned CPIO may kindly be directed to provide correct/consolidated/updated list of rent-defaulters as on date.”
Nifty to hit 4,400 over the medium term
Negative cues from across the world and concerns about their impact on the domestic economy kept the Indian market in the red throughout the day. After hitting the day’s high at the beginning of the trading session, the indices had a free fall on Monday. The National Stock Exchange (NSE) Nifty closed 126.95 points or 2.59% down at 4778.85, while the Bombay Stock Exchange (BSE) Sensex closed 419.07 points or 2.56% down at 15952.44 points.
Nifty has suffered losses over eight consecutive days, totalling 511 points. The fall today has been on a volume of 59.82 crore shares on the NSE, which was below its 10-day moving average. Although a small bounce back may be seen, for the medium term we may see the Nifty falling to the level of 4,400.
The market continued its downtrend in the absence of any domestic trigger and the Asian markets trading weak on the worsening Eurozone debt crisis. The Nifty opened the day at 4,873, down 33 points from its previous close, and the Sensex was down 75 points at 16,297. The opening figures of both the benchmarks were the day’s high. Stocks of metal, refinery, auto and banking sectors remained under selling pressure in early trade.
The market traded sideways till around 1.30pm after which selling intensified on negative cues from Europe, sending the benchmarks further southwards. European markets extended their losses after Moody's warning on France raised fresh concerns about the Eurozone debt crisis. The rupee falling to a fresh 32-month low against the dollar also added to the woes.
The market sank to the day’s low towards the end of trade with the Nifty falling to 4,776 and the Sensex tumbling below the 16,000-mark to 15,900. As a solace, the benchmarks closed marginally above those levels. At close, the Nifty declined 127 points to 4,778 and the Sensex plunged 425 points to settle at 15,946.
The advance-decline ratio on the NSE was 416:1276.
Among the broader indices, the BSE Mid-cap index sank 1.86% and the BSE Small-cap index tanked 1.68%.
There were no green ticks in the sectoral space today as all 13 sectoral indices on the BSE ended lower. The top losers were BSE Metal (3.46%); BSE Bankex (3.24%); BSE Realty (down 3.04%); BSE Power (down 2.72%) and BSE Auto (down 2.68%).
Maruti Suzuki (up 0.20%) and Sun Pharma (up 0.14%) were the only gainers on the Sensex. The major losers were Tata Motors (down 5.20%); BHEL (down 5.04%); ICICI Bank (down 4.90%); Sterlite Industries (down 4.85%) and DLF (down 4.23%).
The key performers on the Nifty were Maruti Suzuki (up 0.79%); Coal India (up 0.45%); Sun Pharma (up 0.28%) and Hindustan Unilever (up 0.04%). The losers were led by SAIL (down 6.57%); Sesa Goa (down 5.99%); Cairn India (down 5.96%); DLF (down 4.92%) and Tata Motors (down 4.76%).
Markets in Asia closed in the negative on European debt issues and the impasse among US politicians on the deficit reduction plan. This apart, exports from Japan fell at the fastest pace in the year to October, a sign that the turmoil in Europe and the US has impacted the Asian economies. Exports fell 3.7% in October from a year earlier compared to a 2.3% rise in the year to September.
The Shanghai Composite shed 0.06%; the Hang Seng declined 1.44%; the Jakarta Composite tanked 1.99%; the KLSE Composite fell 1.40%; the Nikkei 225 slipped 0.32%; the Straits Times settled 1.19% lower; the Seoul Composite declined 1.04% and the Taiwan Weighted tumbled 2.64%.
Back home, foreign institutional investors were net sellers of shares totalling Rs871.62 crore on Friday. However, domestic institutional investors were net buyers of stocks amounting to Rs380.39 crore.
In an unprecedented move, the oil ministry has sanctioned taking ‘scrupulous’ action against Reliance Industries (RIL) for natural gas output from its KG-D6 fields falling below the target. Contrary to the Production Sharing Contract, the ministry has decided to disallow expenditure incurred in constructing production/processing facilities at Dhirubhai-1 and 3 gas fields in KG-D6 block that are currently under utilised/have excess capacity because of falling output. RIL declined 2.42% to close trade at Rs788.55 on the NSE.
Pharma major Dr Reddy’s Laboratories has requested the government to denotify its Special Economic Zone (SEZ) at Medak in Andhra Pradesh. The formulations unit, which was to come up at Medak, will now be moved to Visakhapatnam where the company has another SEZ for manufacturing Active Pharmaceutical Ingredients (APIs). The stock fell 0.51% to close at Rs1,548.20 on the NSE.
Infrastructure lender PTC India Financial Services (PFS) expects to garner as much as Rs50 crore from sale of over 16% stake in the country's largest power bourse, Indian Energy Exchange (IEX). PFS, which currently holds 21.12% stake in the power exchange, would probably divest more than 16% to one or more overseas players. PFS rose 1.93% to Rs13.20 on the NSE today.