Marketmen expected a breakout on Tuesday since Nifty opened above the crucial level of 5,950 but the bulls could not hold that line and the index ended with a minor gain. If Nifty closes below 5,905, we will witness a decline towards 5,700 again
Unlike the past two trading sessions, on Tuesday the market opened with high optimism on the back of the surprise measures taken by the Reserve Bank of India (RBI) last evening to improve liquidity conditions in the banking system. The benchmarks hit their highest levels since 23 September 2013. But soon the positive move started losing its steam. By the end of the day, the indices gave up most of their intra day gains and hit a low and closed almost near that level.
The Sensex opened at 20,094 and hit a high of 20,150. By the end of the session the index hit a low of 19,937 and closed at 19,984 (up 89 points or 0.44%). The Nifty opened at 5,975 and after hitting a high of 5,982, it moved down to the level of 5,913 and closed almost near it at 5,928 (up 69 points or 0.38%). The National Stock Exchange recorded a volume of 57.73 crore shares.
Among the other indices on the NSE, the top five gainers were Infra (1.80%); Realty (1.23%); FMCG (1.09%); Smallcap (1.03%) and Bank Nifty (0.59%). The top five losers were Media (1.58%); Metal (0.77%); PSU Bank (0.66%); MNC (0.36%) and IT (0.31%).
Of the 50 stocks on the Nifty, 23 ended in the green. The top five gainers were
Bharti Airtel (2.51%); LT (2.21%); I T C (2.09%); Jindal Steel (2.04%) and ICICI Bank (2.00%). While the losers were BPCL (3.23%); Hindalco (2.05%); State Bank of India (2.02%); IDFC (1.93%) and BHEL (1.44%).
While the uptrend is still strong, we suspect that the inability of bulls to follow up on today’s move was significant; it could lead to a decline or more sideways action.
One reason could be worries about a rate hike. Although the market welcomed Monday’s step of liquidity infusion by RBI and the analysts foresee the marginal standing facility rate by a further 0.25%, they also fear a repo rate hike by 0.25% to contain inflation expectations.
US indices closed in the negative on Monday. US President Barack Obama repeated that he won't negotiate with Republicans over the debt limit. “We're not going to negotiate under the threat of economic catastrophe,” Obama said during a visit to the Federal Emergency Management Agency in Washington. Republicans are insisting on changing the 2010 Affordable Care Act, while Obama refuses to engage in discussions about policy conditions tied to opening the government or raising the debt ceiling. Treasury Secretary Jacob J Lew has warned the U.S. may be unable to pay its bills after 17 October.
Except for NZSE 50 (down 0.37%) all the other Asian indices closed in the green. Jakarta Composite, top gainer, up 1.32%.
The HSBC China Services Purchasing Managers' Index fell to 52.4 in September from 52.8 in August, HSBC Holdings PLC said on Tuesday. A reading above 50 in the gauge of nationwide service-sector activity indicates on-month expansion and below that means contraction.
European indices were trading in the red while the US Future were trading in the green.
German exports rose in August amid signs the economic recovery is continuing in the euro area, the country's biggest trading partner. Exports, adjusted for working days and seasonal changes, increased 1% from July, when they decreased a revised 0.8%, the Federal Statistics Office in Wiesbaden said today.
UK factories saw domestic and export demands strengthen in the third quarter and expect to accelerate hiring in the next three months, according to the British Chamber of Commerce (BCC). Measures of manufacturers' export sales and orders rose to the highest since the fourth quarter of 2010, the BCC said in a report published in London today. An index of domestic sales in the quarter increased, while companies' employment expectations advanced to a record.
The Bank of France on Tuesday trimmed its growth forecast for the third quarter of this year after business sentiment indicators remained unchanged in September from August. French gross domestic product will rise 0.1% in the third quarter from the second, the Bank of France said, according to its monthly index of business activity. Last month, the central bank had forecast a 0.2% expansion in GDP.
The CIC directed MCD to put-up information on their website that would show clear demarcation of different zones in the city. This is the 181st in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application
The Central Information Commission (CIC), while allowing a complaint, directed the Public Information Officer (PIO) of Municipal Corporation of Delhi (MCD), to publish suo-moto the information on its website regarding demarcation of different zones and the person/s responsible for a particular zone, as required under the Right to Information (RTI) Act.
While giving the judgement on 23 July 2009, Shailesh Gandhi, the then Central Information Commissioner said, "This is a very serious matter and the PIO is directed to ensure that clear directions are obtained which identify the responsibility of the zones. This information must be available with the MCD zones and also put-up on the website so that citizens know whom to approach."
Noida resident Prashant Bhushan, on 7 January 2009, sought from the Public Information Officer (PIO) information regarding state of disrepair of the inner road that lies between Mathura Road and Mother Teresa Missionaries of Charity in Jungpura under the RTI Act.
There was no reply either from the PIO or the First Appellate Authority (FAA). Bhushan, the appellant, then filed a complaint before the CIC. After receiving the complaint, the CIC on 23 June 2009 announced its decision.
The Bench of Mr Gandhi, issued a notice to the PIO on 19 May 2009 asking him to supply the information by 13 June 2009 and sought an explanation for not furnishing the information within the mandated time.
The executive engineer (M)-I and APIO for Central Zone informed the CIC that the information had already been sent to the complainant on 5 March 2009 and information was again being sent on 4 June 2009.
Mr Gandhi, the then CIC, allowed the complaint after finding the PIO guilty of not supplying the complete, required information within 30 days. "On perusal of the file it is evident that the PIO is guilty of transferring the application to wrong Public Authority. Hence, he is also guilty of the delay in providing the information," Mr Gandhi said.
On 23 June 2009, the CIC received a letter from the PIO stating that he complied with the orders of the Bench and delay in providing the information was because of the fact that the information was not available with the his office.
"It was evident that PIO SE, Central Zone transferred the application to SE (PIO), City Zone though the information was held by him. SE, PIO City Zone had again transferred it back to him," Mr Gandhi noted. He then issued a show cause notice to the PIO.
During the hearing on 23 July 2009, SC Yadav, the APIO stated that the responsibility for unnecessary transfer of RTI application was of the then PIO RK Sharma. Sharma had transferred the application to SE (City Zone) who had transferred it back to SE (Central Zone), he said.
Yadav stated that the zones are not clearly demarcated hence, they do not know who is suppose to work where, and hence no work gets done.
"This is a very serious matter and the PIO is directed to ensure that clear directions are obtained which identify the responsibility of the zones. This information must be available with the MCD zones and also put-up on the website so that citizens know whom to approach," Mr Gandhi said.
While allowing the complaint, the Bench directed the PIO to ensure that MCD will put-up on the website a clear demarcation of the zones. "This marking of the zones will be put-up on the website before 20 August 2009 and the Complainant will be informed and accordingly the information will be provided by the PIO concern. A compliance report will be given to the Commission before 25 August 2009," Mr Gandhi said.
CENTRAL INFORMATION COMMISSION
Decision No. CIC/SG/C/2009/000477/3819Adjunct
Complaint No. CIC/SG/C/2009/000477
Complainant : Prashant Bhushan
Noida, Uttar Pradesh-201 301
Respondent : SC Yadav
Municipal Corporation of Delhi
Central Zone, Lajpat Nagar
SEBI is expected to notify the new regulations within a week for listing start-ups and SMEs that would provide easier exit options for angel investors, VC and PE funds
Market regulator Securities and Exchange Board of India (SEBI) will soon notify new norms for the listing of start-ups and small and medium enterprises on the stock exchanges without having to make an initial public offer (IPO).
Earlier in June, the SEBI board had approved the amendment of rules to permit the listing of start-ups and SMEs in institutional trading platform without an IPO.
According to reports, SEBI is expected to notify the new regulations within a week.
Lack of exit opportunities for investors and restricted access to new ones is a major problem faced by start-ups and SMEs.
The move is aimed at providing easier exit options for entities such as angel investors, venture capital (VC) funds and private equities (PE). Besides, the move will provide better visibility, wider investor base and greater fund-raising capabilities to such companies.
SEBI had said in June that the minimum amount for trading or investment on ITP would be Rs10 lakh. Such companies would also be exempted from the requirements of having to offer up to 25% of shareholding to public through an offer document in order to get listed.