Nifty having fallen below 6,790, its recent uptrend is broken for now
The Indian market on Wednesday gave up more than the gains it made in the past two days of trading. The indices opened almost at the same level as Tuesday's closing, after which it traded in the green for a few minutes, when it hit its day’s high. Soon the benchmark indices started trending lower and hit their day’s low in the last few minutes of the trading session. The S&P BSE 30-share Sensex closed at its lowest since 16 April 2014 while NSE 50-share Nifty closed at its lowest since 27 March 2014.
Sensex opened at 22,489 while Nifty opened at 6,709. Sensex hit a high of 22,533 while Nifty hit a high of 6,719. The Sensex went lower to hit 22,286 and close at 22,324 (down 185 points or 0.82%) while Nifty hit a low of 6,643 and closed at 6,653 (down 63 points or 0.93%). The NSE recorded a higher volume of 63.90 crore shares. India VIX today rose 1.04% to 33.6125.
NTPC came up as top gainer in the Sensex 30 pack. The Supreme Court has allowed NTPC to cut supplies to Delhi's power distribution companies (discoms) BSES Yamuna Power and BSES Rajdhani Power, if they do not clear outstanding bills of Rs700 crore by the end of this month. The discoms have so far refused to pay the bills to NTPC and other suppliers, arguing that they had no money because of inadequate tariffs. The discoms have argued that they need to recover Rs21,701 crore in past costs from Delhi's consumers.
Infosys was the top loser in the Sensex 30 stock. UBS has given a 'sell' call to Infosys after downgrading the stock.
IRB Infrastructure was the top gainer in the ‘A’ group on the BSE. IRB Infrastructure informed BSE that the company has emerged as a selected bidder and received letter of award from NHAI for the project of Four Laning of Kaithal - Rajasthan Border Section of NH-152/65. The estimated project cost is approximately Rs2,300 crore.
Allahabad Bank posted a net profit of Rs157.75 crore for the quarter ended March 31, 2014 as compared to Rs126.15 crore for the quarter ended March 31, 2013. Total income has increased from Rs 4,776.90 crore for the quarter ended March 31, 2013 to Rs5,237.68 crore for the quarter ended March 31, 2014. However, the annual net profit fell marginally. The stock was the top loser in the ‘A’ group on the BSE.
US indices closed in the negative on Tuesday. The US trade deficit narrowed in March as exports grew by the most in nine months, the Commerce Department reported on Tuesday. A Purchasing Managers' Index for services in the euro region climbed to 53.1 in April from 52.2 in March, Markit Economics said.
US Federal Reserve Chairwoman Janet Yellen's congressional testimony is scheduled later today.
Except for Jakarta Composite (0.57%) and NZSE 50 (0.27%) all the other Asian indices closed in the negative. Nikkei 225 (2.93%) was the top loser.
A services index in China from HSBC Holdings Plc and Markit Economics dropped to 51.4 in April from 51.9 in the previous month.
Most members of the Bank of Japan agreed to keep easing monetary policy until inflation stabilizes at 2%, according to minutes of the April 7-8 policy meeting released today, 7 May 2014.
The global economy will strengthen over the coming two years, but urgent action is still required to further reduce unemployment and address other legacies from the crisis, according to the OECD's latest Economic Outlook. The BRICS (Brazil, China, India, Indonesia, Russia and South Africa) are projected to see GDP growth of 5.3% this year on average and 5.7% in 2015. China will again have the fastest growth among these countries, with rates just below 7.5% in 2014 and 2015.
European indices were showing mixed performance while US Futures were trading in the green.
Congress MP Vijay Darda, his son and two others are charge sheeted for the offences like criminal conspiracy, cheating and under the provisions of Prevention of Corruption Act in the coal scam
Taking cognisance of the charge sheet filed by the Central Bureau of Investigation (CBI) in a coal block allocation scam case, a Delhi Court on Wednesday summoned as accused Congress' member of Parliament (MP) and chairman and editor-in-chief of Lokmat newspaper Vijay Darda, his son Devendra and two others.
Special CBI Judge Madhu Jain summoned Darda, his son Devendra, Nagpur-based AMR Iron and Steel Pvt Ltd and the company director Manoj Jayaswal for 23rd May. "I am summoning the accused for May 23," the judge said.
They were named as accused in the charge sheet filed by the CBI on 27th March in which it had alleged that they had fraudulently acquired the coal blocks.
They were charge sheeted for the offences under sections 120-B (criminal conspiracy) read with 420 (cheating) of the Indian Penal Code (IPC) and under the provisions of Prevention of Corruption Act.
During the proceedings, the CBI sought more time to file reply on the plea filed by AMR Iron and Steel seeking its monitoring of the ongoing CBI probe in the case.
CBI informed the court that they had done corrections in the list of documents filed along with the charge sheet.
In its plea filed through advocate Vijay Aggarwal, AMR Iron and Steel had claimed that CBI has not probed the matter properly and the charge sheet was filed on the basis of "biased investigation."
CBI, in its FIR lodged earlier, had arraigned AMR Iron and Steel, its directors Arvind Kumar Jayaswal, Manoj Jayaswal, Ramesh Jayaswal and Devendra Darda, son of Vijay Darda, along with unnamed officials of the Coal Ministry and other unidentified persons as accused in the case.
Regarding AMR Iron and Steel, CBI had claimed in its FIR that the firm, in its application form for allocation of coal blocks, had "fraudulently" concealed the fact that its group companies had previously been allocated five coal blocks.
Lalu Yadav, a convict, and 2G scam-accused A Raja are among the 22 former ministers and MPs given special concession or extended lease of “ministerial bungalows” in New Delhi
Several former ministers including Lalu Prasad Yadav, Buta Singh, Dayanidhi Maran, Pawan Kumar Bansal and even A Raja are still occupying the lavish, ministerial bungalows allotted to them when they were in the office even after losing the entitlement, reveals a reply received under the Right to Information (RTI) Act.
Noted RTI activist Subhash Chandra Agrawal, who received the reply, said, "What is shocking is Lalu Yadav and Buta Singh have been granted special favour to retain these bungalows that too on a special concessional lease-rent against the directions from the Supreme Court. If reasons given by Lalu Prasad Yadav and Buta Singh for retaining ministerial bungalows on special concessional lease-rent are valid then such palatial residences should be provided to common people of this nation as well!"
There are 28 names in the list provided by the Director of Estates in the union Ministry of Urban Development (MoUD). This includes three former railway ministers Mukul Roy, Pawan Kumar Bansal and Dinesh Trivedi as well as minister for external affairs SM Krishna, former minister for communication and information technology Dayanidhi Maran, A Raja, minister of road transport CP Joshi and minister for water resources Harish Rawat.
Here is the list of former ministers and members of Parliament (MPs), who are overstaying in the ministerial bungalows...
The otherwise aggressive Lalu Yadav, who lost his membership of Lok Sabha after the conviction in Fodder Scam on 3 October 2013, has cited diabetes and cardio problem that require treatment in AIIMS in New Delhi, for seeking extension of his ministerial bungalow No25 on Tughlak Road (Type-VII). In his undated letter, Yadav had said, "I am undergoing treatment at AIIMS, New Delhi for diabetes and cardio problems. My son and daughter stay with me in the same house. My daughter is also undergoing medical treatment. My granddaughter is also studying in Sanskriti School in New Delhi."
Perturbed by the plight of Lalu Yadav, the Director of Estates, on 20 March 2014, allowed the disqualified MP and former minister to retain his palatial bungalow for one more year (till 31 October 2014) on payment of special rate of licence fee.
The case of Buta Singh, former union home minister as well as former governor of Bihar, is more interesting as his request for extension of his bungalows is endorsed by the Prime Minister himself! Prime Minster Manmohan Singh, in a letter on 3 January 2014 to Kamal Nath, the minister of urban development and Parliamentary affairs, wrote, "Dr Buta Singh continues to enjoy Z+ security cover. He and his family members face very severe threats from various terrorist groups, especially from terrorists in Punjab due to action taken by him in the past on behalf of the Union of India. In his letter, Dr Singh has requested that the increased market rent may be revised to the earlier amount under special leave and license fee as he is a Z+ category protectee."
In his letter Buta Singh had said, "the Directorate of Estates, Ministry of Urban Development has increased market rent from January 2013 onwards to Rs1,06,603 (Rs1.06 lakh) PCM against Rs58,500 as market rent due to non-reversion of my house allotment to special leave and license arrangement. As you must be are aware that I am getting a pension of Rs60,000 per month as an Ex MP, and would therefore request you to kindly reverse my accommodation rent as per special consideration and make it to the original amount of Rs58,500 (as was done under the special leave and license for Z + category protectees)".
In its note on 14 February 2014, the MoUD, stated, "The above case is not covered under the guidelines, as revision of rental liability from market rate to special rate would be contrary to the judgement of the Supreme Court as that would amount to waiver of licence fee prescribed for such allotment for which the Government is not empowered. Since, the proposed case is not in conformity with the policy stated by the Ministry of Urban Development, this Ministry does not support the proposal."
The Cabinet Committee on Accommodation (CCA), said, "after taking into account the fact that regularisation of allotment of accommodation was proposed to be allowed on security grounds as a special dispensation and also keeping in view the past precedents, decided that the licence fee be regulated as proposed in paragraph 5 of the Note regarding partial review of the earlier decision of the CCA taken in its meeting held on 04-01-2013 (Case No.17/1/2013) for revision of rental liability of Dr Buta Singh for the period from 25-06-2010 to 24-06-2014 from market rate of licence fee to special rate of licence fee, as amended from time to time."
Here are the market rates of licence fee (damages) and the special rate of licence from 25 June 2010 to 24 June 2014, as provided by the MoUD...
1. 25 June 2010 to 21 December 201 Rs50,622 per month
2. 1 January 2013 to 30 June 2013 Rs91,103 per month
3. 1 January 2013 onwards Rs1,06,778 per month
Special Licence Fee:
1. 25 June 2010 to 30 June 2010 Rs14,604 per month
2. 1 July 2010 onwards Rs26,639 per month
The note from MoUD also mentions that name of Buta Singh was mentioned by the Supreme Court in the list of unauthorised occupants in SLP No 12065/2009 and the apex court had conveyed its serious reservations on the legality and correctness of the decision taken by the government to allot the official accommodation to Buta Singh in the name of providing security to him.
The Additional Solicitor General (ASG) and Buta Singh's counsel told the Supreme Court that they would file their written assurance about vacating the bungalows by 30 June 2014. While discharging the notices, the apex court then directed the government and concerned agencies to strictly take action.
Yet, on 24 March 2014, the deputy director of Estates, MoUD, informed Buta Singh about approval of revision in his rental liability for Bungalow No11-A, Teen Murti Marg (Type-VII) for 25 June 2010 to 24 June 2014 from market rate of licence fee to special rate of licence fee, as amended from time to time.
Commenting on the issue, Shailesh Gandhi, former Central Information Commissioner under the RTI, said, "This again shows how public resources and money are hijacked and misused by public servants. It is shameful that the Government has given concessional rents to Lalu Yadav and Buta Singh. This is an act of taking from the poorest farmer and delivering it to the chosen few. It is evident that those who partake of such largess have completely lost their sense of integrity and shame. The reasons on record are pathetic excuses and falsehooods. Lalu Yadav is not well and hence needs to be given concessional housing! This convicted scamster who is not even an elected member desires and gets a subsidy. Similarly Buta Singh pleads like a beggar for subsidized housing and the Prime Minister recommends his case! Disgusting."
"So many ministers continue to occupy their houses without any legitimacy since the rates fixed by the ministry are low. Hopefully the new government will throw out all these pretenders. It is such illegal and immoral patronage which keeps the parties together," he added.