Intraday rallies led to more selling, as suggested yesterday. A decline may be on the cards, either right away or after a short rally
On almost the same volume as Monday on the National Stock Exchange (NSE), the Nifty tried moving higher and closed flat today. The NSE recorded a volume of 53.85 crore shares. The Sensex opened at 19,820 while the Nifty opened at 5,855. The indices shot up immediately thereafter hit their day’s high in the morning session. The Sensex moved up from 19,783 to 20,050 during the day and closed at 19,920 (up 19 points or 0.10%). The Nifty moved up from 5,855 to 5,938 during the day and closed at 5,892 (up 3 points or 0.05%).
The top five gainers among the other indices on the NSE were Auto (1.17%); Media (1.09%); Infra (0.60%); Nifty Midcap 50 (0.53%) and Consumption (0.49%) while the top five losers were Metal (1.13%); PSU Bank (0.78%); IT (0.39%); Bank Nifty (0.35%) and Commodities (0.30%).
Of the 50 stocks on the Nifty, 23 ended in the green. The top five gainers were Bajaj Auto (2.80%); Tata Power (2.72%); NTPC (2.03%); LT (1.97%) and Cipla (1.68%). The top five losers were Hindalco (3.65%); BPCL (2.60%); Coal India (2.48%); Jindal Steel (2.04%) and ACC (1.90%).
The government has kept the borrowing target for the fiscal year through March 2014 unchanged at Rs5.79 lakh crore ($92.49 billion), economic affairs secretary Arvind Mayaram said on Monday after a meeting between government and central bank officials to finalize the borrowing plan for the second half of the fiscal year. The government will raise Rs3.44 lakh crore by the end of September. That will be Rs5,000-crore short of the target it had initially set for the first half of the fiscal year, Mayaram said.
Mayaram said that the government would cut spending if revenue falls short of the budget projections, but won't breach the full-year fiscal-deficit target—4.8% of gross domestic product for this year. The gap was 4.9% last fiscal year.
Ratings agency Fitch downgraded some ratings for Indian Bank, Punjab National Bank and Bank of Baroda on expectations of a further deterioration in asset quality and a sharp deceleration on economic growth.
US indices fell on Monday after Fed Bank of New York President William Dudley suggested the pace of QE could be reduced later this year. Addressing business leaders in New York Monday morning, Fed Bank of Atlanta President Dennis Lockhart said the economy is losing some steam.
Except for NZSE 50 (up 0.20%) and Taiwan Weighted (up 0.08%) all the other indices closed in the negative. Jakarta Composite, top loser, was down 2.25%.
European indices were trading in the positive. US Futures were trading marginally lower.
German business confidence rose for a fifth straight month in September 2013. The Ifo business-climate index rose to 107.7 from a revised figure of 107.6 in August. "Although companies assessed their current business situation slightly less favorably, their business expectations were once again more optimistic. The German economy made a confident start to the autumn," Kai Carstensen, director at Ifo, said in the release.
Citing purported crisis at NSEL, the auditor of Jignesh Shah's Financial Technologies has withdrawn his audit report for FY13 ahead of the company's AGM tomorrow
Jignesh Shah-led Financial Technologies (India) Ltd (FTIL) said its auditor has withdrawn the audit report on the company's stand-alone and the consolidated financial statements owing to purported crisis at National Spot Exchange Ltd (NSEL).
In a regulatory filing, FTIL said, it will not discuss points one, two and five in the company's annual general meeting (AGM) on Wednesday. The company's auditor has said that the FY13 accounts cannot be relied upon and hence has withdrawn its audit report.
"Due to purported crisis at NSEL in the recent past and based on the communication of management of NSEL and the statutory auditor of NSEL on the financial statements of NSEL, the statutory auditors of the company on 23 September 2013, in accordance with Standard on Auditing (SA) 560 informed that the audit reports dated 30 May 2013, on the stand-alone and the consolidated financial statements of the company for the year ended 31 March 2013, should no longer be relied upon," the filing says.
Interestingly, the notice for the AGM does not even mention the name of the Exchange in the agenda. This is surprising especially as its main promoter, it is the responsibility of FT to answer questions arisen about the crisis at NSEL, especially since NSEL contributed more than Rs120 crore in profits to FT last year. (Financial Technologies silent about NSEL scam in its AGM agenda)
The first point in FTIL's AGM agenda says that the stand alone and consolidated financial statements of the company for the previous financial year should not be relied upon. The second point which was to be discussed was that the company's financial statement for the previous fiscal were audited before the occurrence of NSEL issue.
The filing also stated that FTIL stand alone and consolidated accounts of the company for the previous fiscal may undergo amendment together with revised auditors' report which will be approved and published once the amendment to stand alone and consolidated accounts is finalised.
In a clarification, the company said, "As per standalone financials of FTIL, the total income forms part of revenue generated from NSEL during the FY2012-13 is largely on account of technology services which contributes only 4.79% of the total income of FTIL, further there is no outstanding amount pending against the same."
The Jignesh Shah-led financial software company and promoter of several exchanges in India and abroad such as MCX, MCX-SX, DGCX in Dubai etc. is holding its 25th AGM on 25th September at Chennai.
After threatening citizens with exclusion from services and benefits if they have not enrolled for Aadhaar and getting slapped by the Supreme Court, the UPA government now plans to introduce NID Bill to give legal status to the numbering scheme
After getting a rebuttal from the Supreme Court, the union government said it will push for passage of a long-pending Bill that would provide legal status to the Unique Identification Authority of India (UIDAI) during the upcoming winter session of the Parliament.
Rajiv Shukla, minister of state for parliamentary affairs and planning, told agencies that the government will bring the National Identification Authority of India Bill 2010 in Parliament during the forthcoming winter session for discussion and passage.
The working of the UIDAI has come under scrutiny of the Supreme Court, which in an interim order on Monday, said that Aadhaar can be issued only to Indian citizens and it cannot be made mandatory for availing of benefits of the government’s subsidy schemes. While trashing the Centre's claim of Rs50,000 crore expenses on the UIDAI project, a Bench of Justices BS Chauhan and SA Bobde said that Aadhaar number is not necessary for important services.
The United Progressive Alliance (UPA) government and the UIDAI have been complicit in the coercion and bullying that is now part of the UID enrolment process, and its silent acquiescence while people are threatened with exclusion from services and benefits if they have not enrolled.
The UIDAI, which issues 12—digit Aadhaar numbers to residents, currently operates through an executive order.
The Bill to provide the authority legal backing was approved by the union Cabinet in September 2010 and introduced in the Rajya Sabha in December that year. It was sent for scrutiny to the Parliamentary Standing Committee on Finance headed by former finance minister and BJP leader Yashwant Sinha.
“Now the Bill has been sent back to the Planning Commission by the Standing Committee with some amendments. We will soon take it to the Cabinet and try to push the draft for passage in the winter session,” Shukla said.
The minister said the UIDAI has not made enrolment for Aadhaar number mandatory for residents and it was for the central departments, ministries and state governments to decide how to verify the identity of beneficiaries.
“Aadhaar establishes the identity of a person and not the nationality. It also serves as proof of residence. Moreover, it is a voluntary facility and not mandatory,” he said.
This also raises question on the forceful implementation of Aadhaar by several government ministries, like the ministry of petroleum and natural gas, which is trying to make it mandatory for customers to provide the UID for subsidy on liquefied petroleum gas (LPG) cylinder. While minister for petroleum Veerappa Moily has been saying that all consumers of LPG will have to submit their Aadhaar numbers to receive subsidy, the union government itself has admitted that it is not mandatory.
Replying to an un-starred question on 8 May 2013, Shukla, had said, "Aadhaar card is not mandatory to avail subsidized facilities being offered by the Government like LPG cylinders, admission in private aided schools, opening a savings account etc."