Sensex, Nifty clueless of further move: Thursday closing report

Market currently directionless on account of big investors abstaining from the market

Each day the effort to revive by the benchmarks is being met with more weakness. On Thursday, the indices opened in the green and tried edging higher but by 11am lost its strength and started trending lower. By around 12.15 pm the Indian indices entered into the negative zone and moved close to yesterday’s close and finally closed marginally higher.

The BSE 30-share Sensex opened at 22,382 and moved in the range of 22,277 and 22,443 and closed at 22,344 (up 20 points or 0.09%). The NSE 50-share Nifty opened at 6,670 and moved between 6,639 and 6,688 and closed at 6,660 (up 7 points or 0.11%).
The NSE recorded a lower volume of 59.70 crore shares. India VIX rose 2.05% to close at 34.3.

Among the other indices on the NSE, the top five gainers were Bank Nifty (0.77%), Auto (0.64%), Finance (0.58%), Service (0.35%) and Metal (0.21%). The top five losers were FMCG (0.87%), Realty (0.85%), Nifty Midcap 50 (0.60%), Dividend Opportunities (0.51%) and Pharma (0.28%).

Of the 50 stocks on the Nifty, 24 ended in the green. The top five gainers were BHEL (3.76%), HCL Technologies (1.83%), Tata Motors (1.72%), Power Grid (1.66%) and Hindalco (1.41%). The top five losers were BPCL (1.85%), Hero Moto Corp (1.36%), ITC (1.34%), Lupin (1.18%) and Bharti Airtel (0.96%).

Of the 1,543 companies on the NSE, 644 companies closed in the green, 807 companies closed flat while 92 companies closed flat.

BHEL was the top gainer (3.22%) in the Sensex 30 pack and among the top two gainers in the ‘A’ group on the BSE. BHEL has successfully commissioned yet another Gas Turbine Generating unit in Oman in the Middle-East region. This is the second successive project after the successful commissioning of the 2x126 MW Fr-9E PDO Amal GTG project in 2012.

ITC, top loser (1.34%) in the Sensex 30 stock, was in news for it being in the advanced negotiations with Bangalore-based Balan Natural Food to acquire its juice brand B Natural, which will mark the group's entry into the beverage market. The acquisition is expected to cost less than Rs80 crore.

Weak quarterly and annual result made Union Bank of India come out as the top loser (8.55%) in the ‘A’ group on the BSE.

Following the arrest of Financial Technologies chairman Jignesh Shah in connection with the Rs5,500 crore-fraud at the National Spot Exchange or NSEL, FTIL (5.00%) and Multi Commodity Exchange of India (6.99%) were among the top three losers on the ‘A’ group on the BSE.

India Ratings & Research, a Fitch Group Company expets gold prices to decline in FY15, in view of the gradual winding-up of unconventional monetary policy in the US. The rating firm see the prices of domestic gold declining to the range of Rs25,500/10g to Rs27,500/10g.

US indices showed a mixed performance on Wednesday. On Wednesday the Federal Reserve Chair Janet Yellen signaled continued support for the economy. The Labor Department said that US nonfarm productivity fell at its fastest pace in a year in the first quarter because of severe weather. That led to the largest gain in unit labor costs in more than a year. Productivity fell at a 1.7% annual rate in the quarter, the Labor Department said.

Except for Jakarta Composite (0.02%) and NZSE 50 (0.53%) all the other Asian indices closed in the positive. Nikkei 225     (0.93%) was the top gainer.

China's exports and imports unexpectedly rose in April. Overseas shipments increased 0.9% from a year earlier, when figures were inflated by fraudulent invoicing, data from the Beijing-based customs administration showed today. Imports gained 0.8%, leaving a trade surplus of $18.46 billion.

European indices were trading in the green while US Futures were trading flat.


Aditya Birla Chemicals tumble 18% on poor Q4 results

During the March quarter, Aditya Birla Chemicals' net profit fell 91% even as its sales rose 33%

Aditya Birla Chemicals (India) Ltd shares fell over 18% on Thursday following a steep fall in its March quarter net profit.

For the quarter to end-March, Aditya Birla Chemicals' net profit fell 91% to Rs0.74 crore from Rs7.84 crore even as its total revenues, including sales, grew 33% to Rs281.74 crore from Rs211.80 crore, same period a year ago.

For the 12 months to end-March, the chemical producer reported a net profit of Rs49.74 crore and total revenues, including sales of Rs1,066 crore.

The company clarified that its FY14 results are not fully comparable with earlier period.
Aditya Birla Chemicals has acquired the business comprising of Chlor Alkali & Phosphoric Acid plant at Karnataka and salt works at Gujarat from Solaris Chemtech Industries for Rs153 crore on 1 September 2013, which contributed to sales growth of the Aditya Birla Chemicals during the FY14.

Aditya Birla Chemicals has made provisions of Rs20.72 crore for current tax, wealth tax and deferred tax. Its reserves and surplus increased 12.90% to Rs399.40 crore from Rs353.76 crore a year ago period.

Aditya Birla Chemicals declared a dividend of Rs1.50 per share.

Aditya Birla Chemicals closed Thursday 18% down at Rs158 on the BSE, while the S&P BSE Sensex ended the day marginally higher at 22,376.

For more stock results, check out this page


Personal Finance Exclusive
Moneylife IMPACT: National Insurance pays Rs80,000 to senior citizen

National Insurance rejected cataract claim of a senior citizen on flimsy grounds of policy break-in due to gap of one day in renewal. Moneylife Foundation’s intervention helped him get Rs80,000 from the insurer

National Insurance Company (NIC) has paid Rs80,000 for cataract claim of both eyes to a senior citizen after Moneylife Foundation Insurance Helpline took up the case. In this case, the third party administrator (TPA), had rejected the claim citing one day delay in policy renewal.

It was a case of Heritage TPA (third party administrator) harassment of senior citizen even though they should know the rules of policy break-in. The TPA, while rejecting the claim had stated, “As per Department Office details received, policy is in first year as gap on renewal of policy is not condoned. As per policy terms and conditions, expenses related to cataract are not payable in first year of policy. Hence this claim is non payable and repudiated under clause 4.3.”

The TPA’s letter states that gap of one day in policy renewal was not condoned by the department office. It shows that NIC department office themselves are either ignorant of mediclaim rules or hand-in-glove with the TPA to deny the claim benefits of cataract procedure.

So, gap of one day in policy renewal is wrongly interpreted as if policy is in first year even though the insured was in third policy year. Cataract has two year waiting period and hence the insurer/TPA makes is non-payable with policy as if is in first year due to break-in of one day.

Moneylife Foundation Insurance Helpline reported the matter to NIC corporate office. They immediately emailed to division and regional office to pay the claim.

It is surprising that even after Insurance Regulatory and Development Authority (IRDA) guidelines effective October 2013, TPAs are still settling claims and sending rejection letters. Heritage TPA claims rejection letter to the policyholder is dated 14 November 2013. NIC and Heritage TPA were conveniently trying to reject claim even when the IRDA guidelines are clearly spelt. Will IRDA take cognisance of the TPAs doing business as usual and insurers not taking charge of claims settlement and denial?

Importantly, not many insured are really aware of the IRDA guidelines. Even the policyholder in this case was not aware of it, but was lucky to have approached Moneylife to seek clarity on the issue.

The case also highlights that you may not get condoned for any delay in genuine cases. Insurers are making it stringent for hospitalisation intimation and claims submission after discharge. Will genuine delay be condoned by department or regional office? You can never rely on it.

IRDA had issued renewability of Health Insurance guidelines with effect from 31 March 2009, allowing a grace period of 15 days for renewal of health insurance policies. This grace period was to condone delay in renewal of health policies up to 15 days for the sake of allowing continuity for waiting periods as well as pre-existing disease (PED) cover. However, any loss occurring during the grace period would not be covered as there is no valid insurance contract during the grace period. The grace period of 15 days was increased to 30 days during implementation of health insurance portability guidelines.

It clearly means gap of one day for policy renewal should not have restarted the waiting period for PED (pre-existing disease) or specific ailment. It only means that any claim arising for service done on that one day cannot be paid. It seems to be a silly reason to reject a claim as there is no question to ask for condone for one day gap in renewal. NIC should have paid the claim, but TPA did nothing for six months. Policyholder pleas to Heritage TPA were going nowhere.

These are the cases which make existing prospective customers stop trusting the insurance company, which is one of the reasons general insurance penetration in India is abysmal. There are apprehensions about insurance companies based on unfair claims rejection examples.



arun adalja

2 years ago

irda never attends the complaint made by insured people and they do not reply to my letter addressed to case of overseas travel insurance i was told by oriental insurance that if i take any claim in my 180 days insurance i will not allowed to go for next 180 days insurance as i want insurance for 360 days,and since last 5 years irda never replied to my quaries.according to them one has to stay without insurance for next 180 days if you take claim in 1st 180 days.i am ready to pay premium whatever they are asking and i was paid 100$ less while paying me the there any justification?



In Reply to arun adalja 2 years ago

Absolutely no justification .
Since IRDA is adamant and their grievance complaint procedure is a farce only way is to go under RTI and ask relevant info. Thereafter, Insurance Ombudsman has to be burdened and complainants have to wait for 2-3 years since there is a long pendency of cases and the infrastructure/manpower is lacking at Ombudsman level. That is a grim reality for Indian Consumers.


2 years ago

To expect any help or intervention even for flouting any guidelines, is to get deliverance . And that is totally absent at IRDA. Any complaint is registered no doubt by the complaints office and # is also given. But then IRDA merely acts as a post office by forwarding the complaint to the Insured company for reply even though the company ahs already replied the same and the very reply requires IRDA confirmation or denial which it does not provide.
In a recent case, a complaint was made initially against the NIAC .They replied the action is taken as per approval from IRDA. Now the complainant asked IRDA authorities if they have given any such approval. The information was required from IRDA. Instead like post office the complaint was again forwarded to NIAC; who in turn again enclosed the copy of an earlier reply. In this uncalled for to& fro , time of two months has already been lost . Instead had IRDA performed its duty to either confirm or reject if such action was in accordance with their approval; the matter would have got closed at their level.
I think, the last resort to get info about such "Approval" may only be thru' RTI application.
The complainant can also file an application for relief/compensation to Insu. Ombudsman in absence of IRDA reply. As claimed by the IC that the action was in accordance with IRDA approval, and in absence of providing such approval to the complainant as the Basis can be a point for mediation. But the fight may take almost 3 years .If IRDA feels responsible , it can just reply 'Yes' to close the litigation option. If says 'No such Approval' then the mediation will be necessary.

Jagdish Motwani

2 years ago

Grace Period for Break in Renewal of Health Insurance Policy is 30 Days & not 15 Days as per IRDA's Health Insurance Regulations.


raj pradhan

In Reply to Jagdish Motwani 2 years ago

I think you missed reading the line: The grace period of 15 days was increased to 30 days during implementation of health insurance portability guidelines.

nilesh prabhu

2 years ago

Dear Raj Pradhan,

Great work


raj pradhan

In Reply to nilesh prabhu 2 years ago

thanks, Mr Prabhu

S K Nataraj

2 years ago

Congratulations to Moneylife Foundation in getting the money from the National Insurance Company, whose TPA Heritage Health wanted to avoid the payment in the first place citing some flimsy excuse. Insurers are very eager to collect the premium , but when it comes to settlement of claims, they resort to harassment causing anguish, pain and frustration to the insured. It is a case of the insured being happy to lend his umbrella when the weather is SUNNY and calling it back when it starts turning cloudy.

Narasimha Pingili

2 years ago

Congratulations on a job well done. The TPAs were supposed to be neutral in settling claims. But they favour the insurance companies as they receive payment from them. I think the insurance companies should be required to pay amounts into a common fund from which the TPAs should be paid. Only then can we expect the TPAs to be neutral.

Where can I get a copy of the IRDA guide lines?


Jagadish Kadri Mahabala

2 years ago

Dear Sir
Thanks for supporting a senior citizen to claim his rightful demand.

raj pradhan

2 years ago

Thanks for all the feedback


2 years ago

Great work done ! We appreciate your job. Your forum is doing good work , your attempt to organize seminar with IRDA Chairman to resolve problems of advisors & clients was good but unfortunately Chairman didn't answered many questions , honorable chairman had come for Time pass., we had lot of hopes but your attempt in vain. Wishing you Good Luck!!

Gopalakrishnan T V

2 years ago

Congratulations to Money Life Foundation (MLF) on this achievement,Happy to note that MOney Life Foundation is fast emerging as an Ombudsman to sort out grievances related to Customer services in all areas whether it is banking,insurance or communication or railways. What their regulators or their own Ombudsmen are doing is what the investors worry? Are they not accountable for their own deficiency of service in such vital matters? IRDA is a miserable failure in regulating Insurance companies when public are taken for a ride by miselling lot of products keeping their commission upfront and trapping the customers. One has to lose heavily to come out of the investment.i think Money Life Foundation will have a key role to play in setting right the deficiencies in Customer Services rendered by various institutions. Money Life Foundation deserves Government Level Recognition and Compensation for their dedication, involvement and Commitment to come to the rescue of customers.Well done MLF.


2 years ago

Congratulations Raj and the Moneylife team, as usual you are helping yhose who have nowhere else to go and are at the whims and fancies of the TPA and the Insurance Cos. Keep up the good work.

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