As was tentatively suggested last week, the market broke out to a new short-term high. Will the gains be sustained?
The resolution of the US “fiscal cliff” enabled the Indian market closing in the green for the second day. The rally saw the Nifty hitting an intraday high of 6,006, its best since 7 January 2011 and the Sensex scaling a high of 19,757, its best since 6 April 2011. As was tentatively suggested last week, the market broke out to a new short-term high. But the question remains whether the gains be sustained. The National Stock Exchange (NSE) reported a volume of 75.67 crore shares and advance-decline ratio of 1107:643.
The market opened on a strong note tracking its Asian peers which were in the positive in morning trade as the House of Representatives late Tuesday night passed the “fiscal cliff” bill by 257 to 167 votes, ending a dramatic New Year's Day showdown over income taxes and deep federal spending cuts.
The Nifty opened 32 points up at 5,983 and the Sensex started off at 19,693, a gain of 112 points over its previous close. After inching higher in initial trade, the benchmarks witnessed a minor bout of profit taking, which led the market to its intraday low. At the lows, the Nifty fell to 5,982 and the Sensex slipped to 19,687.
Brushing aside the initial hiccups, all-round buying led the benchmarks higher in morning trade. The gains were also supported by news that India’s manufacturing sector growth for December 2012 improved to 54.7 in December, up from 53.7 in November, registering the fastest pace in six months. The upmove helped the market hit its intraday high in noon trade. At the highs, the Nifty scaled 6,006 and the Sensex climbed to 19,757.
The indices pared a small part of their gains in subsequent trade and were seen moving sideways in the post-noon session. A positive opening of the key European markets kept the local market in the green till the end of the trading session.
The market closed in the positive for the second day in a row. The Nifty closed 42 points (0.71%) to 5,993 and the Sensex climbed 133 points (0.68%) to finish trade at 19,714.
Among the broader indices, the BSE Mid-cap index climbed 0.56% and the BSE Small-cap index surged 0.90%.
The top sectoral gainers were BSE Consumer Durables (up 1.65%); BSE Capital Goods (up 1.40%); BSE Oil & Gas (up 1.29%); BSE PSU (up 1.02%) and BSE Bankex (up 0.96%). BSE Fast Moving Consumer Goods (down 0.26%) and BSE IT (down 0.07%) were the only losers in the sectoral space.
Twenty three of the 30 stocks on the Sensex closed in the positive. The chief gainers were Bajaj Auto (up 3.07%); Maruti Suzuki (up 2.74%); ONGC (up 2.50%); BHEL (up 2.38%) and Sterlite Industries (up 2.19%). The main losers were Wipro (down 0.78%); ITC (down 0.61%); Mahindra & Mahindra (down 0.44%); Coal India (down 0.35%) and Hindustan Unilever (down 0.14%).
The top two A Group gainers on the BSE were—Gitanjali Gems (up 8.09%) and Videocon Industries (up 6.47%).
The top two A Group losers on the BSE were—Torrent Power (down 1.99%) and Colgate Palmolive (down 1.90%).
The top two B Group gainers on the BSE were—Aarya Global Shares & Securities (up 20%) and Ankit Metal & Power (up 20%).
The top two B Group losers on the BSE were—ArunJyoti Enterprises (down 9.93%) and Arcee Industries (down 9.72%.
Out of the 50 stocks listed on the Nifty, 35 stocks settled in the positive. The main gainers were Bajaj Auto (up 3.66%); Jaiprakash Associates (up 3.40%); Maruti Suzuki (up 3.28%); BPCL (up 3.14%) and IDFC (up 3.08%). The top losers were Asian Paints (down 0.97%); Bharti Airtel (down 0.65%); ITC (down 0.59%); M&M (down 0.54%) and Wipro (down 0.48%).
Markets across Asia closed mostly in the green on optimism from the US, ending weeks of uncertainty over the “fiscal cliff”. The uptick in the Chinese official purchase managers’ index for December, a sign of a pick up in growth, also supported the sentiments.
The Hang Seng jumped 2.89%; the Jakarta Composite gained 0.69%; the Straits Times surged 1.09%; the Seoul Composite climbed 1.71% and the Taiwan Weighted advanced 1.04%. Bucking the trend, the KLSE Composite declined 0.84%. Markets in China and Japan were closed for trade today.
At the time of writing, the CAC 40 of France was trading 2.02% higher, the DAX of Germany surged 1.97% and UK’s FTSE 100 climbed 1.86%. At the same time, the US stock futures were trading with good gains, indicating a positive opening for US stocks.
Back home, foreign institutional investors were net buyers of shares totalling Rs665.04 crore on Tuesday while domestic institutional investors were net sellers of stocks aggregating Rs406.14 crore.
Emco today said it has got Rs458-crore orders from Power Grid Corporation for execution of a transmission line from Champa to Kurukshetra. The transmission line would be designed to carry 6,000 MW power from generating stations in Chhattisgarh to the Northern Grid. Emco jumped 6.94% to settle at Rs33.90 no the NSE.
Reliance Power today said it has synchronised the second 300 MW unit at Butibori thermal power plant in Maharashtra, taking the company's total operating capacity to 1,840 MW. The Butibori project, located near Nagpur, has a total capacity of 600 MW. The first 300 MW unit achieved full load in August last year. The stock gained 1% to close at Rs95.75 on the NSE.
L&T Finance Holdings on Tuesday said it has completed the acquisition of auto finance company Family Credit Ltd for Rs120 crore. Family Credit, which was a subsidiary of Societe Generale Consumer Finance, has presence across two-wheeler and auto financing, L&T Finance Holdings said in a filing on the BSE. L&T Finance Holdings closed 0.43% lower at Rs92.80 on the NSE.
The Commission would also look into the "need for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions
New Delhi: The Indian government on Wednesday constituted the 14th Finance Commission under the Chairmanship of YV Reddy, former Governor of the Reserve Bank of India (RBI), which among other things, will suggest steps for pricing of public utilities like electricity and water in an independent manner, reports PTI.
Announcing the formation of the Commission, Finance Minister P Chidambaram said it will look into issues like disinvestment, GST compensation, sale of non-priority PSUs and subsidies.
The other members of the Commission, which will submit its report by 31 October 2014, include Former Finance Secretary Sushma Nath, NIPFP Director M Govinda Rao, Planning Commission Member Abhijit Sen and Former Acting Chairman of National Statistical Commission Sudipto Mundle.
The recommendations of the Commission, set up under the provisions of the Constitution on sharing of tax proceeds between the Union and States, will apply for the period beginning 1 April 2015.
Among other things, the Commission would look into the "need for insulating the pricing of public utility services like drinking water, irrigation, power and public transport from policy fluctuations through statutory provisions".
Asked whether the government is giving a signal for price hike of public utilities, Chidambaram said: "We are not giving any signal. We are only highlighting matters (relating to) the management of nation's finances over the five year period from 2015 ... These are matters which cannot be ducked or shrugged away. We have to face these matters".
Finance Commission is set up every five years to suggest principles governing the distribution of tax proceeds among Centre, States and local bodies..
The Commission, Chidambaram said, would review the state of finances, deficit and debt levels of the Centre and states, keeping in view, in particular, the fiscal consolidation roadmap recommended by the 13th Finance Commission.
It would suggest measures for maintaining a stable and sustainable fiscal environment consistent with equitable growth including suggestions to amend the Fiscal Responsibility Budget Management Acts.
With regard to debt-stressed states, the Commission has been asked to suggest steps for augmenting revenues of states which are lagging.
"The taxation efforts of the Central government and each state government and the potential for additional resource mobilisation to improve the tax-Gross Domestic Product ratio in the case of the Union and tax-Gross State Domestic Product ratio in the case of the States" would also be part of the recommendations of the Finance Commission.
Besides, it would suggest the level of subsidies that would be essential for sustainable and inclusive growth and sharing of burden between the Centre and states.
Among other things, the Commission has also been asked to review the non-salary expenditure of states and recommend steps for upkeep of capital asset.
The need for making the public sector enterprises competitive and market oriented, listing and disinvestment, and relinquishing of non-priority enterprises would form part of the recommendation.
Home Ministry officials, however said the IPC and the CrPC do not have a provision for naming any law after an individual
New Delhi: The revised anti-rape law, which is expected to be stringent and facilitate speedier justice, is unlikely to be named after the Delhi gang-rape victim as suggested by some quarters, reports PTI.
The new law will be framed after Justice Verma Committee, which was constituted to suggest the possible amendments of criminal law to provide for quicker trial and enhanced punishment to criminals in cases of sexual assault against women, submits its report by the end of January.
Home Ministry officials said the Indian Penal Code (IPC) and the Criminal Procedure Code (CrPC) do not have a provision for naming any law after an individual.
"No law has been named after any person in India. Neither the IPC nor the CrPC provides for that. One has to see the case in national perspective. The issue has wide repercussion while registering offences. This girl has been a catalyst to the changes in the anti-rape law but naming is not an option," an official of said.
Besides others, Union Minister Shashi Tharoor had said yesterday the revised anti-rape legislation should be named after the victim if her parents do not have objection.
The Justice Verma Committee is reviewing criminal law to punish juvenile in sexual assault cases and considering whether the existing law should be amended or to bring a fresh one.
"The Women and Child Development Ministry is the nodal Ministry. They are also considering the need to plug loopholes in sexual assault law," the official said.
Meanwhile, the Home Ministry inquiry into the controversy over allegations and counter-allegations by Delhi Chief Minister Sheila Dikshit and Police Commissioner Neeraj Kumar on recording the gang-rape victim's statement before her death has not been completed yet.
"We expect an early closure of the probe. But no time line can be put to the process," the official said.