Sensex, Nifty in a correction mode – Wednesday closing report

Nifty is headed for further short-term decline


In Tuesday’s closing report, we had mentioned that if the NSE's CNX Nifty heads below 8,130, we would see a deeper short-term decline. On Wednesday, for the major part of the session the NSE's 50-share index traded below this level. The benchmark closed in the negative for the second consecutive session after trading in a narrow range. In line with most of the other Asian indices the Indian benchmark also moved lower on concern that China's growth is slowing and speculation that US interest rates will rise sooner than estimated.

S&P BSE Sensex opened at 27,231 while CNX Nifty opened at 8,136. The Sensex moved in the range of 27,018 and 27,251 and closed at 27,057 (down 208 points or 0.76%). Nifty moved between 8,082 and 8,136 and closed at 8,094 (down 59 points or 0.72%).


The NSE recorded a volume of 98.98 crore shares. India VIX rose 1.35% to close at 12.9300.

Except for Media (2.23%), Realty (0.71%) and Smallcap (0.34%) all the other indices on the NSE closed in the negative. The top five losers were FMCG (1.56%), CPSE (1.28%), IT (1.15%), Energy (1.10%) and Nifty Junior (0.99%).

Of the 50 stocks on the Nifty, 17 ended in the green. The top five gainers were IDFC (2.57%), ICICI Bank (2.02%), Sesa Sterlite (1.88%), Power Grid (1.83%) and DLF (1.64%). The top five losers were Cairn (2.53%), BPCL (2.30%), Hero MotoCorp (2.24%), Coal India (2.10%) and ITC (1.95%).

Of the 1,620 companies on the NSE, 886 companies closed in the green, 686 companies closed in the red while 48 companies closed flat.

Finance Minister Arun Jaitley will miss a meeting of finance ministers from the Group of 20 nations in Australia next week, as he is still in hospital undergoing treatment to manage a diabetic condition.

Trade Minister Nirmala Sitharaman said the government is not considering an immediate gold import duty cut despite the current account deficit coming down. The government had raised the import duty on gold in 2013 to 10%.

Among other news, Sitharaman said India will ask China to set up manufacturing units for exports as it seeks to restore economic momentum and create jobs. The government is also mulling dual usage of SEZ land to help developers earn faster returns. A decision on modification of MAT and dividend distribution tax is on the cards to encourage SEZs, said Sitharaman.

Sesa Sterlite (1.62%) was the top gainer in the Sensex 30 pack. Bombay High Court has put on hold the eviction order issued by Ratnagiri District Court in August last year asking it to vacate 500 acres of land allocated to it for a copper smelting plant in Ratnagiri. In 1993 the company had received a letter from the district collector directing it to suspend construction work because of the local agitation.

ITC (1.85%) was among the top two losers in the Sensex 30 stock. There are reports that government is considering a proposal to ban the sale of loose cigarettes. This will affect major portion of the retail sales. Other suggestions by an expert panel include raising the age limit for consumption and increasing the fine for smoking in public spaces to Rs20,000 from Rs200, apart from making this a cognizable offence.

Suzlon Energy (9.93%) was the top gainer in ‘A’ group on the BSE. It recently informed that it has approved the allotment of 27,03,85,303 equity shares of Rs2 each on conversion of 69,409 bonds worth USD 69,409,000, at a conversion price of Rs15.46 per equity share.

Godrej Consumer (5.06%) was the top loser in the ‘A’ group on the BSE. The stock fell today after hitting its 52-week high on Tuesday.

Except for Nikkei 225 (0.25%) all the other trading Asian indices closed in the red. Hang Seng (1.93%) was the top loser. South Korean stock market will reopen on Thursday after a three-day break for the Harvest Moon festival.

China's money-supply growth in August eased to the slowest pace in five months. M2, the government's broadest measure, rose 12.8% in August from a year earlier, lower than 13.5% rise in July.

European indices were showing mixed performance while US Futures were trading marginally lower.

Representatives of 28 European Union governments will meet in Brussels today to discuss tougher economic sanctions on Russia for its involvement in the Ukraine crisis.


Maharashtra Govt orders closure of Pune SOS Balagram to reclaim 'elite' land?

The land is situated next to 'elite' Poona Club Golf Course. The government will appoint an administrator and begin sending children to other homes


The trustees and the director of the Save Our Soul (SOS) Children’s Village (SOS Balgram) in Pune have yet to receive any official directive of its closure from the Maharashtra government. However, when former children of the orphanage, invoked Right to Information (RTI) Act and procured a recently written letter by a section officer of women and welfare department, they were in a rude shock. The letter directs Commissioner Rajendra Chavan to begin proceedings to close Pune's SOS Balgram, which houses over 160 children of various ages between 5 and 18 years, shift them to other remand homes, and most curiously, explore the possibility of reclaiming the land back to the department.

In a letter issued on 22nd August, which was procured under RTI, a few days back, the signatory who is not even the chief of the department, has ordered the Commissioner, Women and Child Welfare department to appoint an administrator and that, under no condition, should the custody of children be given to the present trustees of SOS Balgram.

The SOS Balgram controversy, which was at its peak in latter half of 2013, was because of the state government’s unusual stance of closing the unique orphanage, which runs in a family-like fashion, with 'mothers' staying with 9 or 10 children in each of the cottages, spread over nine acres. The elite Poona Club Golf Course shares a common boundary wall with this orphanage, leading to the suspicion that it was vested interest at the highest level that is interested in usurping the prime land. Moneylife had run a series of articles on this issue. The reason given by the minister of women and child welfare, Varsha Gaikwad were two incidents, one of molestation and another of a death of a nine-year-old orphan that merited closure of the orphanage. However, the trustees had asked for one more chance while contesting the incidents, as the SOS Balgram maintained an impeccable record for the last 36 years of its existence.

After a hunger strike and a sustained campaign by the former students of the SOS Balgram and media outrage, which included a series of articles in Moneylife, there had been a lull for eight months, with the trustees being allowed to run the orphanage, with assurances that the children would not be moved out.

However, suddenly tables seem to have turned. Deputy Commissioner of women and child welfare department, Rahul More admitted that, “the state government has asked us to take immediate action on its directives issued in the 22nd August letter, I am on tour and it requires the Commissioner’s approval before the process begins.” He also admitted that the department has been asked to explore the possibility of reclaiming the land.

Very strangely, the 30-year lease of the SOS Balgram land expired in 2006 but according to insiders renewal of the lease was 'deliberately' being postponed, time and again. They were asked to pay the annual rent of Rs8,500 per year, directly to the revenue department. Since the last two years, at least eight reminders have been sent to the revenue department for renewal of lease, but there have been no replies to the letters, says a reliable source. Now, in an official letter, the women and child welfare department has been asked to reclaim land, at the earliest.

Very clearly, this move is suspicious. Ashok Ghadge, director of SOS Balgram, says, “I am surprised at the hasty move to close the Balgram. We have already spent near to half a crore on the children after the commissioner in February and August revoked the order to move the children out. The women and child welfare department has already ordered the child committee to begin the process of sending children to other homes. No reasoning has been given as to why they have taken this action suddenly. They have not asked for any report of the performance in the last eight months. This letter belies any logic and reasoning and legal standing.’’

The Bombay High Court too had directed the women and welfare department to look into the issue, which had encouraged the trustees and administration to believe that the license would be revoked. Thereafter, Gaikwad had called for a meeting and it seemed the story would amiably end. (Read: Pune's SOS Balgram to be given a second chance?)
Ghadge has issued a letter to women and child welfare ministry, requesting that the SOS Balgram authorities be given an opportunity to put forward their side of the issue and give an explanation for this knee jerk action.’’ However, it seems, this time, the state government is firm on driving out a social home for the sake of alleged high society needs.

(Vinita Deshmukh is consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.)




3 years ago

The Neta-Babu-Milard-Cop-Crony Kleptocracy of India at work. What is new? I still have nightmares from having seen, a few years ago, on an Indian news channel, unarmed farmers protesting riparian rights being driven into a holding area by lathi wielding policemen near Chinchwad, Poona. A subordinate police officer shot a farmer pinioned by his comrades through the head at point blank range. Pol Pot rules in India by many variants of "Congress" and, like the Saudis and their emirates (including Pakistan) have purchased the ears of international news cartels and governments.


3 years ago

The Neta-Babu-Milard-Cop-Crony Kleptocracy of India at work. What is new? I still have nightmares from having seen, a few years ago, on an Indian news channel, unarmed farmers being driven into a holding area by lathi wielding policemen near Chinchwad, Poona. A subordinate police officer shot a farmer pinioned by him comrades through the head at point blank range. Pol Pot rules in India by many variants of "Congress" and, like the Saudis and their emirates (including Pakistan) have purchased the ears of international news cartels and governments.

sohan modak

3 years ago

Closure of Balgram is a typical Goonda Raj action for the benifit of Pawar-led real estate lobby. We should all get together and fight it out. yet another reason to throw out the present corrupt Government.


3 years ago

Such incidents of ordering closure of a set up established and run and managed successfully for 36 years like SOS Balagram is in a chain of such disregards for the poor, downtrodden and those establishing examples for helping the ones belonging to weaker section of the society. In the name of market economy nothing other than such bulldozing by Govt of whatever colour and creed can be expected because the politician-capitalists-builder-middlemen nexus are out to usurp anything and everything -prime or not. It is for them to make it prime and declare. Such a tendency must be fought by all those who love this country.


3 years ago

I used to live in the big society Hari Ganga adjacent to the SOS village in Yerwada till end of 2012. Once when I went to SOS campus to enquire about doing some voluntary work, the first thing that came to my mind was this was a prime location with a very good view of the golf course and it was just a matter of time before the land would be usurped for some high profile real estate project. Unfortunately, that premonition has come true.

It is so saddening and after reading this article I am sure the corrupt govt. officials along with developers with deep pockets will grab the land sooner or later at whatever cost. It wouldn't be possible to stop them but what CAN be done is to ask for alternative govt. land or infrastructure to rehabilitate them instead of disrupting the lives of the children in such a ruthless manner. The family unit structure is really unique and the children have a life there.. they go to schools and some have outside sponsors. There are lot of corporates who engage in various philanthropic activities. It would be a shame to let all the effort go down the drain due to the greed of a few people. And all this molestation charge is bullshit. Very convenient when it suits them to close down establishments.

My two cent suggestion:

1) Keep up the pressure through RTI to seek a logical explanation for the sudden action.

2) Negotiate for an alternative reasonable arrangement for the children so that the whole organization can relocate as a whole instead of children being torn apart from the only families they have known and sent to other homes.

3) Keep an eye out for developments when the govt. would sell the land to a developer and put a spanner in their plans or alternately, negotiate to have part of the proceeds of such a sale to be given to SOS for rebuilding the infrastructure at a different location which is not so prime. This seems to be a win-win solution.

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