If Nifty closes above its previous day’s high, it may signal a change of trend
Weak global cues and domestic economic concerns led the market lower for the second day today. Although the market is moving down, there is no momentum to fall. The trend is still down. Look out for the Nifty closing above previous day's high for a possible change in direction. The National Stock Exchange (NSE) saw a higher volume of 65.87 crore shares.
Unending problems in Europe resulted in a gap down opening in the domestic market. Fresh political concerns in Greece which have led to the uncertainty over the bailout package to the beleaguered nation saw markets in the US and Europe settle lower overnight. The developments also weighed on the Asian pack in morning trade today. Back home, the Nifty opened 32 points down at 4,968 and the Sensex resumed trade at 16,436, a loss of 110 points.
Intense volatility kept the benchmarks range-bound on both sides of the previous close. However, select buying helped the market recoup its losses and hit its intraday high in the late morning session. At this point the Nifty rose to 5,016 and the Sensex moved up to 16,616.
Unable to sustain the gains, the indices moved lower in noon trade, but a positive opening of the European bourses resulted in the benchmarks emerging into the green for a short time. The market extended its losses in the late session dragged by banking, metal, realty and auto stocks.
Meanwhile, a media report stated that the Indian government would not bow to the pressure from the West even as the income tax department is readying itself to recover the tax from telecom major Vodafone.
The benchmarks touched their low at around 2.40pm with the Nifty falling to 4,956 and the Sensex declining to 16,423.
A minor recovery ensured a close off the lows. The Nifty finished 25 points lower at 4,975 and the Sensex ended the session at 16,480, down 67 points.
The advance-decline ratio on the NSE was in favour of the losers at 477:1267.
Among the broader indices, the BSE Mid-cap index dropped 0.98% and the BSE Small-cap index tanked 1.23%.
Barring the BSE Fast Moving Consumer Goods index (up 2.69%) and the BSE IT index (up 0.21%), all other sectoral gauges settled lower. The top losers were BSE Realty (down 2.99%); BSE Metal (down 2.06%); BSE Bankex (down 1.89%); BSE Power (down 1.84%) and BSE PSU (down 1.79%).
ITC (up 5.61%); TCS (up 2.13%); Hindalco Industries (up 1.36%); Bajaj Auto (up 1.19%) and Wipro (up 1.11%) were the top performers on the Sensex. The losers were led by DLF (down 4.18%); State Bank of India (down 3.64%); Mahindra & Mahindra (down 3.21%); NTPC (down 2.92%) and Jindal Steel (down 2.90%).
The top stocks on the Nifty were ITC (up 5.73%); Ranbaxy (up 3.78%); Bajaj Auto (up 2.42%); TCS (up 1.94%) and IDFC (up 1.89%). The key losers on the index were Jaiprakash Associates (down 5.23%); DLF (down 4.29%); Kotak Mahindra Bank (down 3.87%); SBI (down 3.80%) and M&M (down 3.57%).
Markets in Asia closed in the negative on negative cues from Europe. A failure to form a government in Greece after the recent elections has put the bailout package in a limbo. A leftist aspirant for the prime minister's post has set a condition of rejection of the international aid, a move which could have Greece leaving the Eurozone and more troubles for the continent.
The Shanghai Composite tanked 1.65%; the Hang Seng declined 0.75%; the Jakarta Composite fell by 1.24%; the KLSE Composite shed 0.36%; the Nikkei 225 dropped 1.49%; the Straits Times slipped 1.06%; the KOSPI Composite fell by 0.85% and the Taiwan Weighted lost 0.93%. At the time of writing, the three key European indices were in the negative and the US stock futures were in the red.
Back home, foreign institutional investors continued to be net sellers in the equities segment. They sold stocks totalling Rs398.98 crore on Tuesday whereas domestic institutional investors were net buyers of shares aggregating Rs257.60 crore.
Shares of jewellery retailer Tribhovandas Bhimji Zaveri (TBZ) today made a weak debut, listing at Rs115.05 against the issue price of Rs 120 per share on the NSE. The scrip traded in the range of Rs110.50 and Rs120. It finally closed at Rs111, down 9% over its issue price.
Pig iron maker Tata Metaliks today said it has allotted one crore shares of Rs100 each to one of its promoters Tata Steel on preferential basis. The shares would be redeemable after a period of three years from the date of allotment, it added. Tata Metaliks settled 0.88% higher at Rs63.25 on the NSE.
HCL Infosystems has entered into an agreement with Cisco WebEx, for the Indian market. Under this deal, the SaaS (Software as a Service) offering brought to the market by HCL Infosystems, will be operationalised by Cisco. Cisco WebEx is on-demand collaboration, online meeting, web and video conferencing platform. HCL Info closed at Rs43, down 1.60% on the NSE.
ONGC would use the new subsidiary for its foray into city gas distribution business and sale of imported LNG
New Delhi : In an attempt to de-risk its exploration business, state-owned Oil and Natural Gas Corp (ONGC) plans to foray into gas retailing business through a new subsidiary -- ONGC Gas Ltd, reports PTI.
ONGC would use the new subsidiary for its foray into city gas distribution business and sale of imported liquefied natural gas (LNG), company officials said here.
The new unit may be aimed at making amends to the company letting go lucrative opportunities to enter gas business. Though being the country's largest natural gas producer at around 55 million cubic meters per day, ONGC has virtually no presence in marketing of the environment friendly fuel.
All of its gas is marketed by state-owned GAIL India Ltd. It had let go marketing rights on gas from even newer fields as also of LNG imported by Petronet LNG Ltd.
ONGC holds 12.5% stake in Petronet LNG, the nation's largest liquefied natural gas importer. This is the same as the stake held by GAIL and refiners Indian Oil Corp and Bharat Petroleum Corp. While others market a share of LNG imported by Petronet, ONGC had never demanded sale rights.
Also, plans to set up a LNG import facility at Mangalore were shelved. But under Sudhir Vasudeva, ONGC is renewing its focus on natural gas, whose share in India's primary energy basket will almost double to 20% by 2025.
ONGC is part of a consortium that is vying for British energy group BG's stake in Gujarat Gas, which retails CNG to automobiles and piped cooking gas to households in cities like Ahmedabad and Surat in Gujarat.
Officials said ONGC Gas would bid for city gas distribution (CGD) licences and explore possibility of setting up a LNG import facility. Also, it may import LNG at one of the terminals in the country and market the fuel to consumers directly.
ONGC believes that the nation's dependency on imported LNG, now estimated at 30%, would rise as production of older domestic fields falls.
ONGC had few months back appointed AT Kearney to chart out its city gas foray. AT Kearney suggested setting up of ONGC Gas for bidding for licence to retail CNG to automobiles and piped cooking gas to households, they said.
Gas business would help the firm de-risk its exploration business with oil and gas output from majority of its old and ageing existing field slated to hit a decline soon.
From 15th May, a departing international passenger, travelling over 5,000 kms, would have to pay Rs1,068 as UDF and an arriving passenger Rs881.10. For passengers who travel between 2,000 and 5,000 kms, a departing traveller would be paying Rs845.50 and an arriving one Rs699.17
New Delhi: Air travel cost from Delhi would go up from Tuesday next when higher user development fee (UDF) becomes effective for all domestic and international passengers while departing or arriving at the Indira Gandhi International (IGI) Airport, reports PTI.
The Airports Economic Regulatory Authority (AERA) on 25th April decided to raise airport charges, including UDF, by a whopping 346% for two years, with airlines protesting the move and saying they and the passengers would have to face the brunt of the massive hike.
The AERA's decision has been accepted by the government and notified by the Directorate General of Civil Aviation now, official sources said.
From 15th May, a departing international passenger, travelling over 5,000 kms, would have to pay Rs1,068 as UDF and an arriving passenger Rs881.10. For passengers who travel between 2,000 and 5,000 kms, a departing traveller would be paying Rs845.50 and an arriving one Rs699.17.
The international travellers flying short distances below 2,000 kms, would have to pay Rs534 for departing from Delhi and Rs436 for arrival.
In the domestic sector, a departing passenger would pay Rs462.80 for travel over 500 kms and an incoming passenger Rs391.60. For travel up to 500 kms, a passenger would pay Rs231.40 and Rs195.80 for using the airport for departure or arrival.
This is the first time that even incoming passengers are being included in the ambit of UDF. The UDF rates applicable from 15th May would go up further next year, as per the AERA order.
The ticket prices would also get hiked depending on to what extent the airlines pass on the additional burden to passengers due to the hike in various airport charges, like those on landing, parking, navigation, fuel throughput and usage of Common User Terminals (CUTE).
Terming the move as "extremely disappointing", the airlines' global body, International Air Transport Association (IATA) had earlier said the increase in airport charges would make Delhi "the world's most expensive airport."
Airline industry sources said the higher charges would not only burden the passengers at IGI Airport but also discourage foreign airlines from operating from here.
The hike was, however, less than half of the 774% hike sought by GMR-led joint venture Delhi International Airport Limited (DIAL). It had said the increase in the airport charges was "inadequate" and "much below our expectations".