Sensex, Nifty extremely overbought: Weekly market report
  • Caution is warranted over the short-term. Expect a decline from Tuesday

The BSE 30-share Sensex closed the week that ended on 28th March, at 22,339.97 (up 586 points or 3%), while the NSE’s 50-share Nifty closed at 6,695.90 (up 203 points or 3%) for the week.


On the each of the days in this week the indices hit a new high and the benchmark closed closer to the day’s high mostly on all the days.


On Monday, Nifty closed at 6,584 (up 89 points or 1.36%). A preliminary gauge of China's factory activity fell to an eight-month low. The "flash" edition of HSBC's China manufacturing Purchasing Managers' Index (PMI) dropped to 48.1 from February's 48.5, remaining below the 50 level separating expansion from contraction. However, the Asian markets went up on the hope that this would attract government stimulus.


On Tuesday, Nifty closed at 6,590 (up 6 points or 0.09%). The Election Commission ordered the deferment of an increase in gas prices that was to take effect from 1 April 2014. On the other hand, the Bharatiya Janata Party said the party will review the new gas pricing formula if elected to power after general elections.


On Wednesday, Nifty closed, in the positive for the fifth consecutive session, at 6,601 (up 12 points or 0.18%). To attract more foreign investment, RBI announced allowing opening of special rupee as well as foreign currency accounts with local banks.


In spite of being a day of expiry of futures and options bourses witnessed a less volatile session. Banking shares were in focus after Goldman Sachs upgraded ratings of state-owned banks. Nifty closed at 6,642 (up 40 points or 0.61%) on Thursday.


Significant reforms under a stable government could lead to valuation re-rating in particular for PSU banks, that could provide a 66% average upside as stressed loans could fall sharply to 4.7% from 10.5% by FY18, Goldman says.


One more step in favour for the banks happened when RBI on Thursday extended the transitional period for full implementation of Basel III capital regulations in India up to 31 March 2019, instead of as on 31 March 2018. Nifty again managed making a new high and closed at 6,696 (up 54 points or 0.82%) on Friday.


For the week, among the other indices on the NSE, the top two performers were PSU Bank (12%) and CPSE (9%) while the worst two performers were Media (3%) and Pharma (2%).


Among the Nifty stocks, the top five stocks for the week were Punjab National Bank (17%); IDFC (15%); State Bank of India (12%); Bank of Baroda (11%) and Ultratech Cement (10%) while the top five losers were Dr. Reddy's Lab (5%); Sun Pharma (3%); Wipro (3%); HCL Technologies (1%) and Infosys (1%).


Of the 1,428 companies on the NSE, 855 companies closed in the green, 535 companies closed in the red while 38 companies closed flat.


Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


ML Top sector


ML Worst sector








Software & IT Services


Telecom Services








Auto Components


Lifestyle & Leisure




Housing Society issues and simple solutions

Shirish Shanbhag, held the first Round Table meeting on housing society issues at Moneylife Foundation offered solutions to various members


Shirish Shanbhag, an expert who helps people draft legal documentation related to co-operative housing societies (CHS), Right to Information (RTI) and other areas, said several issues in CHS can be resolved by simple methods like writing to the Society Secretary, Deputy Registrar of Cooperative Societies.


Sometimes, there are fights between housing societies and individual apartment owners, as well as outsiders. Many flat owners do not know how to proceed with their complaints.


There are several issues in a CHS, like car parking, leakages, fraudulent auditing, unauthorised construction, and many other issues. Home owners need to know the right recourse to take action to ensure that their rights are maintained and upheld.


The round table on CHS issues was meant to allow face-to-face interaction with Mr Shanbhag and was kept limited to 25 persons, based on those who send the synopses of their problems first.


Here are some of the questions people raised and the answers provided by Mr Shanbhag...


Terrace Flat / enclosed

Q: Can a CHS society levy service charges on an enclosed terrace flat?


1. Find out whether this terrace flat is officially owned by the CHS.

2. File RTI to BMC's building proposal department.

3. Maintenance charges are applicable to all types of flats in a CHS.


Q: What are the tax implications of an additional area allotted during redevelopment of CHS? Who is liable to pay such tax?


1. If additional area is given free of charge in redevelopment then stamp duty is payable on all area.

2. Stamp duty would be levied on construction cost based on original.

3. Stamp duty on the additional area would be charged at market value.

4. Tri-party Agreement for Alternate and Permanent Accommodation needs to be signed between the flat owner, builder and the CHS. This agreement should be signed only after passing the building development plan.


Q: Municipal record shows the plot of our society in the name of one of the brothers of the land owner and his heirs. How can we get the plot transferred in the Society's name?


Ans: Since the CHS is an old one, you will have to go for deemed conveyance. Send letters to the landowner or their legal heirs asking for copies related with the property. Call a special general body meeting (SGM) to discuss the deemed conveyance and appoint one or more members as authority to deal with the procedure. Visit, Dty Registrar's office in your area, find out who is responsible for the deemed conveyance. Collect info about documents required for it. Submit your application.




3 years ago

solutions r for human beings do u expect from POLITICIANS ? there r many housing societies ran up to courts & from court to ministers r better to known one SREE GANESH at NERUL-NM./v r fighting since last 15 years

SEBI banned SVS securities from securities markets for one year

SEBI alleged SVS securities has failed to exercise due skill, care and diligence regarding manipulative transactions executed by its sub-broker in illiquid scrip

Market regulator Securities and Exchange Board of India (SEBI) prohibited SVS Securities (SVS) from dealing in capital market for one year. SEBI alleged SVS has failed to exercise due care and diligence as a stock broker with respect to transactions in shares of Harita Seating Systems executed by its sub-broker; Aquarian Share Broker Co.

SEBI conducted a probe into trading in the scrips of Harita Seating Systems during the period from 3 November 2009 to 31 March  2010.The investigation revealed that Aquarian had executed all the trades in the scrip of the company on behalf of SVS Securities' clients on the stock exchanges.

SEBI order said that the shares of the company were illiquid. The transactions in form of cross deals and synchronised deals had resulted in the creation of artificial volume in Harita's shares and also increased the price of the scrip.

"When Aquarian was placing repeated synchronised and cross transactions in illiquid scrip for the connected/ related clients through the noticee (SVS Securities), the noticee, being a professional stock broker, should have suspected that the price and volume in the scrip was being manipulated," SEBI said in its order.

The market regulator has said that the charge against SVS Securities is with regard to failure to discharge due skill, care and diligence in its stock broking business and it has not been found to be actively involved in the alleged price and volume manipulation.

Hence, SEBI passed an order saying, "SVS Securities is prohibited from accessing the securities market and buying, selling and otherwise dealing in securities market, directly or indirectly, in any manner whatsoever, for a period of one year from the date of this order."


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