Sensex, Nifty in no man’s land – Weekly closing report

Nifty will suffer a decline once it goes below 8,050


The S&P BSE Sensex closed the week that ended on 12th September at 27,061 (up 34 points or 0.13%), while the NSE's CNX Nifty ended at 8,106 (up 19 points or 0.23%). Previous week, we had mentioned that the Nifty may give up some gains and if the index goes down, the support lies between 8,000 and 7,950. This week, the index dipped during the week, but went down only to the level of 8,057.

Nifty had a strong opening on Monday. Opening gap on the index was the highest, since 12 August 2014. It managed keeping itself above Friday’s close throughout the session. The benchmark closed almost near to its day’s high, which was also its life time high, so also new life time high closing. Nifty closed at 8,174 (up 87 points or 1.08%).

Moody's said that the changes in the rules for raising Basel III-compliant capital, announced by the Reserve Bank of India (RBI) this month, are "credit positive", as they make it easier for banks to raise funds and attract more investors.

As we had anticipated last week, weakness on the bourse set in on Tuesday. Nifty closed at 8,153 (down 21 points or 0.26%).

The news making round on Tuesday was that the Indian government has left it to the apex court to decide on the issue of cancellation of coal blocks. The government gave details of about 40 operational coal blocks and six blocks which are ready to be functional to the Supreme Court. While among other news, Commerce Minister Nirmala Sitharaman said that the government will not allow foreign direct investment in multi-brand retail.

The benchmark closed in the negative for the second consecutive session after trading in a narrow range on Wednesday. Nifty closed at 8,094 (down 59 points or 0.72%). Among other news affecting the market sentiment was the import duty issue on gold. Nirmala Sitharaman said that the government is not considering an immediate gold import duty cut despite the current account deficit coming down. In 2013 the government had raised the import duty on gold to 10%.

Correction on the index continued on Thursday when it fell further although marginally. Nifty closed at 8,086 (down 8 points or 0.10%). Cabinet Committee on Economic Affairs approved stake sales in three PSUs namely ONGC (5% stake), Coal India (10% stake) and NHPC (11.36% stake).

In the last hour of the session on Friday, Nifty managed making a strong upmove. Nifty closed at 8,106 (up 20 points or 0.24%) after three negative days. The Indian government is looking at the proposal for extending excise duty concessions to the automobile sector beyond December. It is also considering the possibility of surplus cash of state-owned enterprises, including those of Maharatnas and Navratnas, lying idle in banks, to be used to nurse ailing PSUs that can be revived back to health.

After market hours, the government released the combined inflation of August 2014 and index of industrial production (IIP) of July 2014. Combined inflation for urban and rural areas eased marginally to 7.80% in August 2014 from 7.96% in July 2014. The IIP rose 0.5% in July from a year ago, the slowest in four months.

For the week, among the other indices on the NSE, the top two performers were PSU Bank (5%) and Smallcap (4%), while the worst two performers were PSE (1%) and Energy (1%).

Among the Nifty stocks, the top five stocks for the week were Cipla (10%); Bank of Baroda (7%); Punjab National Bank (5%); State Bank of India (5%) and IDFC (4%), while the top five losers were Sun Pharma (6%); NMDC (5%); NTPC (4%); Coal India (3%) and Oil & Natural Gas (3%).

Of the 1,472 companies on the NSE, 1,199 companies closed in the green, 250 companies closed in the red while 23 companies closed flat.

Out of the 27 main sectors tracked by Moneylife, the top five and the bottom five sectors for this week were:


ML Top sector


ML Worst sector


Auto Components


Oil & Gas
















Non-Ferrous Metals




Sensex, Nifty may try to rally – Friday closing report

Nifty is trapped in a trading zone


Breaking the three days of negative move, the Indian indices on Friday covered up more than yesterday’s loss. We had mentioned in Thursday’s closing report that NSE's CNX Nifty may further weaken and may head towards 8,000. Today the move on the index was highly volatile with occasional dips into the negative. However after 2.18 pm the benchmark made a strong up move and closed in the positive.

S&P BSE Sensex opened at 27,048 while the 50-share Nifty opened at 8,087. Sensex moved in the range of 26,966 and 27,097 and closed at 27,061 (up 65 points or 0.24%) while Nifty moved in the between 8,072 and 8,114 and closed at 8,106 (up 20 points or 0.24%). NSE recorded a volume of 105.05 crore shares. India VIX fell 1.22% to close at 12.3650.

Combined inflation for urban and rural areas eased marginally to 7.80% in August 2014 from 7.96% in July 2014. Inflation in urban areas eased to 7.04% in August from 7.42% in July. Food inflation in urban areas eased marginally to 8.40% in August from 8.45% in July.

Monsoon rainfall between 1 June 2014 and 10 September 2014 was 11% below average, an India Meteorological Department (IMD) report dated 11 September 2014 showed.
As per reports, the Indian government is looking at the proposal for extending excise duty concessions to the automobile sector beyond December. The government in June 2014 had announced extension of the excise duty concession by six months to 31 December 2014.

Transport Minister Nitin Gadkari said at an industry event on Friday that the government plans to launch Rs2 lakh crore worth of infrastructure projects this year.
Surplus cash of state-owned enterprises including those of Maharatnas and Navratnas lying idle in banks may be used to nurse ailing PSUs that can be revived back to health, the government said today. The government has constituted a committee to study the proposal and submit a report in two months’ time.

Amara Raja Batteries (8.88%) which hit its 52-week high today was also the top gainer in ‘A’ group on the BSE. Oracle Financial Services (6.58%) also hit its 52-week high today. Its board at its meeting held today has declared an interim dividend of Rs485 per equity share of Rs5 each of the company. The stock was among the top two gainers in the group.

Bharat Forge (3.07%) which hit its 52-week high on Thursday corrected today and was among the top two losers in ‘A’ group on the BSE. It recently informed that it has divested its 50% stake in Impact Automotive Solutions Ltd, which was formed, earlier in 2010 as a JV with KPIT Technologies. The JV was formed for the manufacture of hybrid solutions for automotive. The stake was sold to KPIT Technologies for Rs10.80 crore against an initial investment of Rs14.91 crore.

Cipla hit its 52-week high today and was the top gainer (6.38%) in the Sensex 30 pack. It was also among the top three gainers in the ‘A’ group on the BSE. Maruti Suzuki (1.87%) was among the top two gainers in the Sensex 30 pack. It today said that it plans to roll out its light commercial vehicles project on a limited scale and will take the initiative forward by understanding the marketing and sales experience. It also hit its 52-week high today.

Hindalco (2.29%) was the top loser in the Sensex 30 stock. Sun Pharma (2.05%) which was the top loser in the Sensex 30 stock on Thursday, was among the top two losers today. It is in the news for its Halol manufacturing plant in Gujarat being subjected to surprise inspection by the American drug regulator USFDA. Recently, three important medicines from the US market were recalled, all of which were produced from Halol.

US indices closed Thursday flat. The US Market will look to next week's Federal Open Market Committee meeting for fresh guidance on US interest rates. At the end of a two-day meeting on 16-17 September 2014, the FOMC is widely expected to announce a cut in Fed's monthly bond-buying program by another $10 billion to $15 billion, staying on track to end the program at its October meeting. The Fed is likely to raise short-term interest rates next year from their current near-zero levels, where they have been since December 2008.

Asian indices showed mixed performance. Shanghai Composite (0.88%) was the top gainer while Taiwan Weighted (1.07%) was the top loser.

The latest data showed credit growth of Chinese financial institutions surged last month.
The Bank of Korea held its policy interest rate at 2.25% today. European indices were showing mixed trading while US Futures were trading marginally higher.


Election time: Maharashtra and Haryana to vote on 15th October

Maharashtra and Haryana would go to polls on 15th October in a single phase and election results would be declared on 19th October


Maharashtra and Haryana are set to go to polls on 15th October as per the legislative assembly election schedule announced by the Election Commission. Bye-elections in Beed constituency in Maharashtra, Kanubari on Arunachal Pradesh, Hiyanglam in Manipur, Northern Angami-II AC in Nagaland, Rajkot in Gujarat, Kairana in Uttar Pradesh and Kandlamal in Odisha would also be held on 15th October.


Chief Election Commissioner, VS Sampath, said both the states will go to polls on 15th October in single phase and votes would be counted on 19 October 2014.


With the EC announcement, the model code of conduct has come into force with immediate effect. There are 288 seats in Maharashtra and 90 seats in Haryana up for grabs.


Talking about the paid news phenomenon, the Commission said, it has laid out a mechanism with three tier of media certification and monitoring committees (MCMCs) at district, state and EC level.


Complaint redressal mechanism – Call Center and Website based

The EC said, all poll going States shall have a complaint redressal mechanism based on website and call center. The number of call center is 1950, which is a toll free number. The URL of the complaint registration website will be announced for each State by the respective Chief Electoral Officer separately.


"Complaints can be registered by making calls to the toll free call center numbers or on the web site. Action will be taken within time limit on all complaints. Complainants will also be informed of the action taken by SMS and by the call center. Complainants can also see the details of the action taken on their complaints on the website," it said in a statement.




Notification: 20 September 2014

Last date of filing nominations: 27 September 2014

Last date to withdraw nomination: 1 October 2014

Polling: 15 October 2014

Counting of votes: 19 October 2014


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