Nifty to keep itself above the day’s low to regain some strength
The Indian market opened Wednesday in the green and traded mostly above yesterday’s close until 12.20pm, after which it witnessed a sudden slip in the negative and immediately hit the day’s low. It tried recovering but it lacked strength.
The S&P BSE Sensex opened at 25,565 and hit a high at 25,609 while NSE Nifty opened at 7,636 and hit a high at 7,663. In the first hour of the noon session the slip into the negative made the indices hit a low of 25,114 and 7,516. Sensex closed at 25,246 (down 275 points or 1.08%) while Nifty closed at 7,558 (down 74 points or 0.96%). The NSE recorded a higher volume of 134.94 crore shares. India VIX rose 5% to close at 18.5800.
Except for Media (1.40%) and Pharma (0.12%) all the other indices on the NSE closed in the red. The top five losers were Realty (2.19%), Energy (1.37%), Nifty Midcap 50 (1.34%), Dividend Opportunities (1.34%) and Commodities (1.20%).
Of the 50 stocks on the Nifty, 10 ended in the green. The top five gainers were Cipla (2.69%), Lupin (2.68%), Kotak Mahindra Bank (2.37%), Hindalco (2.37%) and Gail (1.81%). The top five losers were Jindal Steel (3.43%), BPCL (3.30%), IDFC (3.08%), BHEL (3.05%) and NMDC (2.96%).
Of the 1,582 companies on the NSE, 598 companies closed in the green, 942 companies closed in the red while 42 closed flat.
Rising prices of essential food items of daily consumption has made the government unveil some anti-inflationary measures. Among other measures the increasing trend in the price of onions has made the government to impose a minimum export price (MEP) of $300 per metric ton on the export of onions. The centre has decided to release more supplies of rice to state governments through the Food Corporation of India for public distribution system. The centre also reviewed the steady increase in the retail price of milk and took a decision to consider withholding export incentives on milk currently in force.
Minister of Communications & Information Technology Ravi Shankar Prasad on Tuesday, 17 June 2014, said that his ministry has given in-principle approval for a nation-wide Mobile Network Portability and its implementation would begin after the Telecom Regulatory Authority of India submits its recommendations.
Cipla (2.98%), among the top six gainers in the ‘A’ group on the BSE and the top gainer in the Sensex 30 pack, has clarified that the news making the rounds of the promoters of the company are planning to sell their stake to MNCs are rumours. The company said that the news item is purely baseless and speculative in nature.
NTPC's solar power project in Madhya Pradesh has been commissioned. The 50 MW plant in Rajgarh will be used to supply electricity to about 90,000 households a year. However the stock was among the top three losers (2.26%) in the Sensex 30 stock.
There is news in the media that HPCL might sign a fresh MoU with state government to revive its Rs 37,230-cr refinery-cum-petrochemical complex plan in Barmer. The stock was among the top three loser (4.54%) in the ‘A’ group on the BSE.
US indices closed marginally higher on Tuesday.
Federal Reserve monetary policy decision is scheduled to be released later today.
Asian indices showed mixed performance. Nikkei 225 (0.93%) was the top gainer, while Seoul Composite (0.60%) was the top loser.
European indices were trading higher. US Futures were trading marginally in the green.
Kerala government is probing land purchase deal in Maharashtra, worth Rs1.5 crore by Tom Jose, its principal secretary in PWD
The Kerala government has decided to probe land dealings of Tom Jose, the principal secretary in Public Works Department (PWD) in the state. According to a report from Mathrubhumi, Jose while working as secretary in PWD bought an estate worth Rs1.5 crore at Sindhudurg in Maharashtra. The state government is probing the source of the money used in the land deal, the report says.
Earlier, the Left Democratic Front (LDF) sought explanation from Jose, the then chief secretary for buying land without prior permission as mandated by the All India Civil Services Rule. At that time, Jose told the government that he spent Rs40 lakh from his own pocket and took a loan from Bank of India for the rest. The loan was repaid in 2010 raking up the controversy that required further probe, the newspaper said.
Replying to the government, Jose has said that Rs1.23 crore was given as loan to him by PJ Davis and Dr Jose and the balance was waived by the estate owner.
The decision of Air India to crack the whip comes amid reports that several cabin crew members were on the lookout for greener pastures, especially eyeing jobs in Gulf carriers
Taking a tough stance to ensure discipline, state-run carrier Air India has sacked 47 members of its cabin crew and issued show-cause notices to 20 more for absenteeism.
According to senior airline officials, while all of those sacked are stationed in Mumbai, 17 of those issued the notices for not showing up for three months without any intimation also belong to the western metropolis and the rest from Delhi.
However, those issued show-cause notices could re-join duty by 30th June after fulfilling necessary requirements and getting certified for sickness, if any, from Air India doctors, the officials said, adding that such disciplinary action taken on a regular basis has now become a deterrent for a total cabin crew strength of about 3,500.
The decision of Air India to crack the whip comes amid reports that several cabin crew members were on the lookout for greener pastures, especially eyeing jobs in Gulf carriers.
The officials said the prevailing work hours for the cabin crew stood at 125 hours per month or 1,000 hours each year, but those being sacked or issued notices have not put in even a single hour of duty in the recent past.
The prevailing manpower strength of the national carrier stands at about 14,000, after a total of 9,000 employees being shifted to Air India's subsidiaries Air India Engineering Services Ltd (AIESL) and Air India Air Transport Services Ltd (AIATSL) which became operational last year.
By 2017, around 7,000 staffers would retire, leaving the parent company with about 7,000, they said, adding Air India would then have one of the "best aircraft-manpower ratio" with an average age of 45-48 years. The ratio currently is about 240 per aircraft which would come down to around 100.