Sensex, Nifty in a short downtrend: Monday Closing Report

The recent strong uptrend is over and the market is likely to remain in a downtrend, subject to pullbacks for the next few days at least

The market settled lower for the second day in a row on profit booking and weak global cues. On Friday we had mentioned that a close below 5,735 on the Nifty may result in some change in trend. Although the index began above this level today, it witnessed a continuous fall throughout the trading session. The recent uptrend is over for now and a short-term downtrend has set in. The National Stock Exchange saw a volume of 71.19 crore shares and an advance-decline ratio of 618:824.
The Indian market opened marginally higher as the weakness in the Asian pack made investors nervous about the global slowdown and the September quarter earnings season. The Nifty opened five points up at 5,752 and the Sensex started off at 18,969, a gain of 31 points over its previous close.
The opening figures on both benchmarks were their intraday highs as the market soon fell into the negative on profit booking after the rally seen last week. The market continued to drift further southwards as trade progressed on selling pressure in realty and oil & gas sectors.
A weak opening of the key European indices added to the woes, which pushed the barometers deeper into the red. Select buying saw the market make a brief recovery in post-noon trade, however, unabated selling pressure kept a tab on the gains.
The market dropped to its intraday low in the last half hour wherein the Nifty fell to 5,666 and the Sensex retracted to 18,684. 
The benchmarks settled near the lows on profit booking and weak global cues. The Nifty declined 71 points (1.23%) to close at 5,676 and the Sensex tanked 229 points (1.21%) to finish the session at 18,709.
Among the broader markets, the BSE Mid-cap index declined 0.44% and the BSE Small-cap index fell 0.16%. 
BSE Healthcare (up 1.20%) was the lone gainer in the sectoral space. The losers were led by BSE Realty (down 3.50%), BSE Oil & Gas (down 2.77%); BSE Capital Goods (down 2.70%); BSE Consumer Durables (down 1.56%) and BSE IT (down 1.40%).
Eight of the 30 stocks on the Sensex closed in the positive. The major gainers were Sun Pharma (up 3.67%); Bharti Airtel (up 1.62%); Cipla (up 0.87%); Jindal Steel (up 0.87%) and ITC (up 0.65%). The main losers were Reliance Industries (down 4.51%); Hindalco Industries (down 3.52%); BHEL (down 3.44%); Larsen & Toubro (down 3.09%) and State Bank of India (down 2.97%).
The top two A Group gainers on the BSE were—NHPC (up 3.97%) and Sun Pharma (up 3.67%).
The top two A Group losers on the BSE were—DLF (down 7.24%) and United Spirits (down 6.28%).
The top two B Group gainers on the BSE were—Nile (up 19.96%) and Archidply Industries (up 19.91%).
The top two B Group losers on the BSE were—Sheetal Diamonds (down 13.11%) and Globus Corporation (down12.82%).
Out of the 50 stocks listed on the Nifty, 12 stocks settled in the positive. The key gainers were Sun Pharma (up3.73%); Asian Paints (up 2.33%); UltraTech (up1.62%); Bharti Airtel (up 1.56%) and Cairn India (up 1.33%). The major losers were DLF (down 7.46%); Reliance Infrastructure (down 4.82%); RIL (down 4.76%); Hindalco Ind (down 3.96%) and BHEL (down 3.75%).
Markets in Asia closed mostly lower on concerns that the corporate earnings might be impacted on account of the continuing slowdown in the global economy. fresh concerns about Greece and Spain also dented investor sentiments.
The Shanghai Composite, which was closed last week for the Golden Week holiday, settled 0.56% down. Among others, the Hang Seng dropped 0.89%; the Jakarta Composite and the Straits tanked 1% each; the KLSE Composite settled flat with a negative bias; the Seoul Composite declined 0.67% and the Taiwan Weighted settled 0.97% lower. The Japanese market was closed for trade today.
At the time of writing, the key European indices were down between 0.06% and 1.42% ahead of a crucial meeting of European finance ministers to look for ways to ease the region’s debt crisis. At the same time, US stock futures were in the red, indicating a lower opening of US stocks. 
Back home, foreign institutional investors were net buyers of stocks aggregating Rs4,351.99 crore on Friday whereas domestic institutional investors were net sellers of shares totalling Rs189.10 crore.
Kalpataru Power Transmission, engaged in power transmission equipment, has bagged orders worth Rs604 crore, mainly from the Power Grid Corporation of India (PGCIL). The company has received two projects worth Rs571 crore from PGCIL and another order worth Rs33 crore from a private company. The stock gained 1.19% to close at Rs89.65 on the NSE.
Neyveli Lignite Corporation has inked a joint venture agreement with a Uttar Pradesh government undertaking company for setting up a 1,980-MW coal-based thermal power project in the state at an investment of Rs11,128 crore. The Rs11,128 crore project is expected to come up in Ghatampur Tehsil, Kanpur Nagar District, Uttar Pradesh in which NLC will hold majority stake of 51%. The stock advanced 1.17% to settle at Rs86.15 on the NSE.
FMCG firm Dabur India on Monday announced the re-launch of “Thirty Plus” brand with a new formulation. Years after it vanished off the store shelves, India’s first-ever rejuvenator brand is now making a comeback with its new owner Dabur India. The stock declined 0.94% to close at Rs131.65 on the NSE.


EGoM has tentatively resolved issues on one-time fee: Sibal

The EGoM, in its previously meeting could not take a decision on levy of the one-time charge in absence of a legal opinion from the Attorney General on the proposal to levy one-time fee on existing telecom operators

New Delhi: A high-powered ministerial panel headed by Finance Minister P Chidambaram on Monday "tentatively resolved" all issues concerning a proposal to levy one-time fee on existing telecom operators, Communications Minister Kapil Sibal said, reports PTI.


A final decision based on the recommendations of the Empowered Group of Ministers (EGoM) would be taken by the Cabinet headed by Prime Minister Manmohan Singh later this month, he said without elaborating.


"We had a two-hour meeting today. We have tentatively resolved all the issues. We are now moving to the Cabinet and will try and get it to the Cabinet on 16th October, if possible, so that the matter can be finalised," he told reporters.


The EGoM, in its previously meeting on 3rd October, could not take a decision on levy of the one-time charge in absence of a legal opinion from the Attorney General on the issue.


Refusing to comment on the decisions taken by the EGoM today, Sibal said, "Till the matter goes to the Cabinet, I couldn't possibly tell you the details of the decision but all the issues placed that were placed before the EGoM have been resolved."


The DoT had earlier made four proposals to the Cabinet on one-time fee -- no charge; levy a one-time fee on all airwaves held by existing telecom companies; impose a fee on airwaves held beyond the start-up spectrum of 4.4 MHz; or levy a fee on airwaves held beyond the contracted spectrum of 6.2 MHz.


Existing players were allocated pan-India permits with 4.4 Mhz of airwaves frequencies at price of Rs 1,658 crore but new telecom operators will have to pay a minimum of Rs 14,000 crore for similar set of airwaves for pan-India business in auction that are scheduled to start in November.


Sibal said the timing of the Cabinet meeting depends on the Prime Minister's Office. "If the Cabinet meets on 16th October, we will try that the Cabinet takes a decision on all issues... We are trying to resolve all these issues before 19th October."


Last date for submitting application for participating in spectrum auction is 19th October.


Supreme Court seeks governments' replies on human trial of drugs

The apex court while expressing its serious concern, however, refrained from passing any blanket ban on the trials and instead sought a comprehensive reply from the Centre on the issues

New Delhi: Taking a serious view of alleged use of human beings as guinea pigs for clinical trials by drug companies, the Supreme Court on Monday asked the Centre and various states governments to reply to the allegation, reports PTI.


A bench of justices RM Lodha and AR Dave also directed the Union government to come out with details of the deaths, if any, and the side effects and compensation, if any, paid to the victims or their family members.


The apex court's direction came during the hearing of a public interest litigation (PIL) petition, filed by NGO Swasthya Adhikar Manch, alleging large scale clinical drug trials across the country by various pharmaceutical firms using Indian citizens as guinea pigs in those tests.


"We can even issue a one-line direction that all these clinical trials which affect many people must stop forthwith. It must suffice, we are very serious about it," the apex court told Additional Solicitor General Siddharth Luthra.


The bench while expressing its serious concern, however, refrained from passing any blanket ban on the trials and instead sought a comprehensive reply from the Centre on the four issues.


The issues included number of applications received by the Union government for clinical trials between 1 January 2005 and 30 June 2012.


The bench secondly wanted to know "the number of deaths, if any, suffered by subjects of clinical trials and if yes, the number and nature of deaths."


Thirdly, the bench sought to know "the serious side effects, if any, suffered by subjects of clinical trial and if yes, the number of such side effects and nature of side effects."


The bench also asked if any compensation was paid to the subjects who suffered side effects or to the family of subjects who died.


Appearing for the NGO, Counsel Sanjay Parekh alleged the clinical trials by several pharmaceutical companies were going on indiscriminately in various states, senior counsel Dushyant Dave for the Madhya Pradesh government said the states cannot be faulted for the tests.


He argued that the permissions for trials were granted by the Central government without consulting the states.


The argument, however, did not impress the bench which pointed out that the said clinical trials were conducted in state governments' hospitals whose employees and doctors are under the control of the respective state governments.


It then proceeded to issue notices to all the states, through their chief secretaries, for their responses and posted the matter for further hearing after eight weeks.


The notice was not issued to the Madhya Pradesh government as it is a party before the court.


Detailing several cases of alleged illegal drug trials in Indore in the central state of Madhya Pradesh, the NGO has said, in its petition, "Over 3,300 patients were used for the tests. Approximately 15 government doctors were involved.


About 40 private doctors in 10 private hospitals were involved.


"Clinical trials were conducted on 233 mentally-ill patients, 1,833 children in the age group of one day to 15 years....Approximately Rs5.5 crore were paid to the government doctors alone. In 2008, there were 288 deaths, in 2009, there were 637 deaths, and in 2010, there were 597 deaths," it has alleged.


It claimed there was lack of transparency in clinical trials as the subjects were not aware of their rights.


It said majority of people on whom the tests were performed were poor and illiterate, came from marginalised communities and suffered serious adverse effects.


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