Sensex, Nifty fall on weakening rupee: Tuesday Closing Report

As long as Nifty does not break 4788, it ha a good chance of hitting 5,040

The market snapped its three-day gaining streak to settle lower as the weakening rupee ignited fresh concerns about the pace of economic growth. Yesterday we had mentioned that the Nifty has to hold itself above 4,789, which may take the benchmark to the level of 5,040. The Nifty today made a higher high, but couldn’t maintain the momentum and went into the red in the noon session. Apart from sustaining above the support of 4,789, the benchmark has to strongly close above today’s high which may take it up to the level of 5,040. The National Stock Exchange (NSE) saw a higher volume of 53.61 crore shares.

The market opened higher on a recovery in the rupee and positive cues from the Asian markets which were in the green in morning trade on hopes of Europe working towards new solutions to tackle its debt problems. The Nifty opened 49 points higher at 4,955 and the Sensex resumed trade at 16,344, up 161 points over its previous close.

The benchmarks hit the day’s highs in initial trade itself with the Nifty going up to 4,956 and the Sensex scaling 16,367. All sectoral indices, led by capital goods and consumer durables, were trading in the positive zone.

The market pared part of the early gains as the rupee dropped to a new record low of 55.09 to a dollar. The indices, which were sideways till noon, witnessed a sharp fall as institutional investors increased selling.

The losses expanded in the post-noon session as investors feared that the depreciation in the rupee would make imports costlier and restrict growth.

A further fall in the rupee to 55.19 a dollar in afternoon trade added to investors’ woes. The benchmarks dropped to their intraday lows in late trade. At this point, the Nifty went back to 4,850 and the Sensex tumbling to 16,001.

The market closed near the lows of the day, snapping its three-day winning streak. The Nifty settled 46 points (0.93%) lower at 4,861 and the Sensex lost 157 points to finish trade at 16,026.

The advance-decline ratio on the NSE was 613:1045.

Among the broader indices, the BSE Mid-cap index fell 0.59% and the BSE Small-cap index declined by 0.68%.

BSE IT (up 0.46%), BSE TECk (up 0.15%) and BSE Consumer Durables (up 0.11%) were the sectoral gainers. The top losers were BSE Metal (down 1.83%); BSE Bankex (down 1.51%); BSE Power (down 1.45%); BSE Realty (down 1.23%) and BSE Capital Goods (down 1.21%).

The Sensex gainers were Tata Motors, TCS (up 1.17% each); BHEL (up 1.04%) and HDFC (up 0.24%). The key losers were Tata Power (down 5.29%); Maruti Suzuki (down 4.50%); Sterlite Industries (down 3.96%); State Bank of India (down 3.43%) and Hindalco Industries (down 2.99%).

The Nifty was led by TCS (up 2.46%); HCL Technologies (up 2.20%); Tata Motors (up 1.55%); Cairn India (up 1.33%) and SAIL (up 1.21%). The main losers were Sesa Goa (down 5.38%); Tata Power (down 5.33%); Maruti Suzuki (down 5.04%); Sterlite Ind (down 4.01%) and Sun Pharma (down 3.65%).

Markets in Asia closed higher on hopes that Germany and China would look at fresh initiatives to spur growth. Reports that the Chinese government would boost investment in infrastructure and German finance minister’s assertion that the country would consider all available solutions to help growth in the Eurozone supported gains in Asia.

The Shanghai Composite surged 1.06%; the Hang Seng advanced 0.62%; the Jakarta Composite jumped 2.06%; the KLSE Composite rose 0.52%; the Nikkei 225 climbed 1.10%; the Straits Times gained 1.20%; the KOSPI Composite was up 1.64% and the Taiwan Weighted settled 1.15% higher.

At the time of writing, the key European markets were up between 0.53% and 0.71% while the US stock futures were in the negative.

Back home, foreign institutional investors were net sellers of shares totalling Rs79.59 crore on Monday. On the other hand, domestic institutional investors were buyers of equities amounting to Rs149.20 crore.

Piramal Healthcare today said it has completed the first phase of clinical trials of a new oral drug for treating cancer and will move to the next stage of development. The company said it has established safety, apart from determining maximum tolerated dosages in humans for its new molecule code named P1446A-05 in multi-centric Phase-I trials conducted in India and Canada. The stock gained 0.14% to close at Rs420.65 on the NSE.

Venus Remedies today said it has received patent approval in South Africa for an antibiotic combination of carbapenem and aminoglycoside, to be used for treating bacterial infections. Having received this patent grant from Companies and Intellectual Property Registration Office (CIPRO), South Africa, the company is hopeful of capturing a major share in the market. The stock closed at Rs164.30 on the NSE, up 1.92% over its previous close.

Power and automation major ABB India has bagged a Rs 175-crore order from National Thermal Power Corporation to build two sub-stations in Maharashtra. ABB’s turnkey project scope comprises the design, engineering, supply, installation, commissioning and associated civil works for the sub-stations. The project is scheduled for completion in 2016. ABB gained 2.44% to close at Rs727.60 on the NSE.


Public Interest Exclusive
Election Commission to start field trial of vote confirmation ticket on EVMs

The paper trail or paper confirmation receipt, which would be automatically printed by the electronic voting machine, would help eliminate doubts cast on the EVM system

The Election Commission of India (EC) will soon start filed trials of the vote confirmation ticket, which will show where the individual had cast his/her vote. In a tweet reply, Dr SY Quraishi, chief election commissioner (CEC), said that the development of the paper trail is in a very advanced stage and soon the EC will run a field trial.

The paper trail or paper confirmation receipt, which would be automatically printed by the electronic voting machine (EVM), would help eliminate doubts cast on the EVM system. It appears that when the voter presses the button for the candidate of his choice in the EVM, a paper ballot with the serial number, name and symbol of the candidate will be printed. The printouts will be used later to cross-check the voting data stored in the EVMs.

Earlier, while speaking at Moneylife Foundation’s second anniversary celebration, Janata Party president, Dr Subramanian Swamy talked about how EVMs can be easily tampered with. He said that India is among the few countries that use them without a check-back mechanism. Even Japan, which provides the microcontroller for our EVMs, does not use them without paper confirmation tabs, Dr Swamy added.

State-run Bharat Electronics (BEL), which makes the EVMs in India, also confirmed that the EC has given their requirements and it would incorporate the new features. Speaking with media persons in January 2012, Anil Kumar, managing director of BEL had said, “The software in the EVM will be modified and a printer will be attached to it. When you cast a vote, the serial number and some data will be generated in the form of a printout. It is to ensure that there is no malpractice in the voting system.”

EVM are being used in general and state elections to implement electronic voting in part from the 1999 elections and in total since the 2004 elections. EVMs were first used in 1982 in the by-election to North Paravur Assembly Constituency of Kerala for about 50 polling stations.

In April 2010, an independent security analysis was released by a research team led by Hari Prasad, Rop Gonggrijp, and J Alex Halderman. The study included video demonstrations of two attacks that the researchers carried out on a real EVM, as well as descriptions of several other potential vulnerabilities.

The researchers suggested moving to a voting system that provides greater transparency, such as paper ballots, precinct count optical scan, or a voter verified paper audit trail.

Majority of political parties backed the demand to have a voter verified paper audit trail in EVMs to counter charges of tampering. After that the EC, in October 2010, appointed an expert technical committee headed by Prof PV Indiresan (former director of IIT-M) to consider the feasibility of the proposal.

Earlier in January 2012, the Delhi High Court, while refusing to issue directions to the EC, had suggested that the Commission should hold wider consultations with the executive, political parties and other stakeholders on the matter of paper audit trails. Janata Party chief Subramanian Swamy had had moved the high court seeking its directions to the Commission that a paper trail be incorporated to record the votes cast through EVMs or the old system of paper ballots be brought back.

The EC had opposed the plea, saying returning to the paper ballots would not be feasible as it would require immense expenditure as there were over 73 crore eligible voters in the country.
BEL has supplied about 8 lakh EVMs to the Commission. These old machines would be replaced with the Commission certifying new models with advanced technology in a phased manner.


Mumbai property prices increased 15% in Q1 2012

Despite the slowdown in transactions for the past 4-5 months prices continue to move-up. However, the growth in prices will moderate and increase in a 10-15% range for the year 2012, a study by a property portal reveals

Mumbai: Property prices in the Mumbai region has seen an escalation in prices when compared with per square feet prices (PSF) of first quarter of 2012 over same period last year, a study by reveals. This clearly reflects that the overall sentiment of the sector has improved drastically.

Commenting on the same Vineet Singh, Business Head and said “The real estate market of Mumbai has always been an attractive destination for buyers because it provides high return on investments. Almost 50% of the Mumbai market comprises of investors. And we find that despite the slowdown in transactions for the past 4-5 months prices continue to move-up. However, the growth in prices will moderate and increase in a 10-15% range for the year 2012.”

Key localities around the Mumbai Andheri Dahisar area saw an appreciation in per square rates with areas like Kandivali (East and West), Borivali (West), Andheri (East and West ), Dahisar witnessing a 10% to 17% rise in  prices in Q1-2012 over Q1-2011.

Prime localities of South and South west Mumbai like Lower Parel, Prabhadevi, Worli, Napean Sea Road, Bandra (W) , Mahalaxmi  witnessed stable rentals over the period of last one year. Both Dadar (W) and Juhu saw prices appreciate by 18% respectively in the first quarter to end-March over a year ago period.

Localities in Thane witnessed maximum price appreciation over the last one year. Badlapur witnessed 29% rise in PSQF prices in Q1-12 over Q1-11, while both Hiranandani Estate and Majiwada witnessed 21% increase in prices during the same time period.

A look at the property prices of key localities in Navi Mumbai show that Kalamboli, Sanpada and Kamothe has seen a high appreciation in property prices with prices moving up by 20%, 17% and 15% in Q1-12 over Q1-11. Property Prices for Kalamboli is around Rs4,396/- and prices in Sanpada and Kamothe are around Rs8,958/- and Rs4,632/- respectively in Q1-12. Both Ghansoli and Kharghar in Navi Mumbai saw prices appreciate by 12% respectively in Q1-12 over Q1-11.




4 years ago

Well the price increase in Mumbai is only a sham. Actually the builders are having plenty of inventory as they are facing lack of demand.

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