If the Nifty closes below 6,010, the current uptrend will be under threat
The market erased most of its gains, but settled marginally in the positive, after engineering major L&T’s quarterly number failed to meet market estimates. If the Nifty closes below 6,010, the current uptrend will be under threat. The National Stock Exchange (NSE) reported a lower volume of 44.78 crore shares and advance-decline ratio of 582:764.
The Indian market opened on a subdued note on concerns about quarterly results from corporates and the movement of the rupee against the dollar. On the other hand, markets in Asia were firm in morning trade as Japanese prime minister Shinzo Abe’s victory in Sunday’s upper house elections improved prospects for more monetary stimulus.
The Nifty opened 19 points lower at 6,010 and the Sensex started the day at 20,097, down 53 points from its previous close. The benchmarks touched their intraday lows in initial trade with the Nifty falling to 6,004 and the Sensex slipping to 20,066.
Meanwhile, the rupee fell by nine paise to 59.44 against the dollar in early trade at the Interbank Foreign Exchange market on higher demand for the greenback from importers amid a weak opening in local equities.
Gains in auto, banking and realty sectors saw the benchmarks emerge into the positive terrain in the first hour itself. The market continued to gain momentum in morning trade on support from technology, IT and auto sectors.
The indices hit their intraday highs in noon trade with the Nifty touching 6,064 and the Sensex rising to 20,265. The market remained firm in subsequent trade.
However, lower-than-estimated quarterly earnings from engineering major Larsen & Toubro (L&T) dragged the indices near their previous closing levels in late trade.
L&T’s first quarter net profit fell 12.5% year-on-year to Rs756 crore. Net sales increased 5% to Rs12,555 crore in June quarter from Rs11,955 crore y-o-y.
The market closed marginally higher on disappointing results from L&T. The Nifty added three points (0.04%) to 6,032 and the Sensex rose nine points (0.05%) to settle at 20,159.
The broader indices settled mixed with the BSE Mid-cap index rising 0.04% and the BSE Small-cap index falling 0.32%.
BSE Auto (up 1.06%); BSE Bankex (up 0.98%); BSE IT (up 0.73%) and BSE TECk (up 0.71%) were the sectoral gainers today. The top losers were BSE Capital Goods (down 5.57%); BSE Oil & Gas (down 1.65%); BSE Power (down 0.91%); BSE PSU (down 0.62%) and BSE Realty (down 0.53%).
Out of the 30 stocks on the Sensex, 19 stocks settled higher. The main gainers were HDFC (up 3.17%); Sun Pharmaceutical Industries (up 2.75%); Mahindra & Mahindra (up 2.63%); Bharti Airtel (up 1.65%) and ICICI Bank (up 1.64%). The main losers were L&T (down 7.46%); BHEL (down 7.05%); Tata Steel (down 2.95%); ONGC (down 2.85%) and Reliance Industries (down 1.59%).
The top two A Group gainers on the BSE were—GMR Infrastructure (up 7.52%) and Century Textiles & Industries (up 7.11%).
The top two A Group losers on the BSE were—Wockhardt (down 9.12%) and L&T (down 7.46%).
The top two B Group gainers on the BSE were—Assam Company India (up 20%) and Baba Arts (up 19.27%).
The top two B Group losers on the BSE were—Gufic Biosciences (down 19.86%) and Sreeleathers (down 15.77%).
Of the 50 stocks on the Nifty, 24 ended in the in the green. The major gainers were HDFC (up 3.42%); IndusInd Bank (up 2.84%); Sun Pharma (up 2.72%); M&M (up 2.59%) and Bank of Baroda (up 2.57%). The key losers were L&T (down 7.60%); BHEL (down 6.97%); Ambuja Cement Co (down 4.49%); ONGC (down 3.31%) and Tata Steel (down 3.24%).
The Asian pack closed mostly higher on Japanese prime minister Shinzo Abe’s landslide victory in Sunday’s upper house elections. Meanwhile, the People’s Bank of China on 19th July scrapped the floor on the rates banks can charge customers while keeping a cap on deposit rates.
The Shanghai Composite gained 0.61%; the Hang Seng rose 0.25%; the Nikkei 225 advanced 0.47%; the Straits Times climbed 0.66%; the Seoul Composite gained 0.48% and the Taiwan Weighted settled 0.54% higher. On the other hand, the Jakarta Composite dropped 0.96% and the KLSE Composite ended flat with a negative bias.
At the time of writing, two of the three key European markets were trading with minor gains and the US stock futures were marginally in the positive.
Back home, foreign institutional investors were net buyers of shares amounting to Rs252.26 crore on Friday while domestic institutional investors were net sellers of stocks totalling Rs229.10 crore.
Mobile VAS company OnMobile Global today said it has closed the deal to acquire US-based Livewire Mobile for $17.8 million, a move aimed to increase its mobile entertainment portfolio in North America. The deal (worth about Rs106 crore) will help OnMobile gain a stronger foothold in the North American market, which is considered a high music consuming market with high average revenue per unit (ARPU). The stock declined 2.07% to Rs28.40 on the NSE.
Country’s largest private firm in the sector, Great Eastern Shipping today said it will add a very large gas carrier to its fleet, taking the number of vessels to 29. The 1994 built vessel is expected to join the company’s fleet in 2015, it said. The stock fell 0.32% to close at Rs214.70 on the NSE.
Indian pharma major’s US-based subsidiary Lupin Pharmaceuticals Inc has received final approval from US Food and Drug Administration (USFDA) for its Metformin Hydrochloride extended release tablets in strengths of 500 mg and 1000 mg, Lupin said in a statement. Metformin HCl ER tablets are indicated as an adjunct to diet and exercise to improve glycemic control in adults with type 2 diabetes mellitus. The stock fell 0.91% to settle at Rs891 on the NSE.
The appellant did not receive information or his ration card from the Department of Food and Civil Supplies in the GNCTD. The CIC directed the PIO to pay a compensation of Rs5,000 for the loss and detriment suffered by the appellant. This is the 138th in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application
The Central Information Commission (CIC), while allowing an appeal, directed the additional commissioner of the Department of Food and Civil Supplies (DFCS) under the Government of National Capital Territory of Delhi (GNCTD) to inquire into a matter where the appellant was neither provided information nor his ration card within a specified time.
While giving this judgement on 4 February 2010, Shailesh Gandhi, the then Central Information Commissioner said, “Prima-facie it appears that the appellant has been deprived of his entitlement and there may be a possibility of corrupt practices being responsible for this. For the loss and detriment suffered by him the Commission under its powers under Section 19 (8)(b) of the Right to Information (RTI) Act orders compensation of Rs5,000 to be paid to the appellant.”
New Delhi resident Ram Asrey, on 19 April 2010, sought information about his ration card from the Public Information Officer (PIO) of DFCS. Here is the information he sought under the RTI Act.
1. Has my BPL card been renewed?
2. Yes or NO?
3. If yes, provide the new number for my BPL card
4. If not, has my BPL card renewal been rejected? Yes or no?
5. If yes, why have not I been provided with the rejection letter?
6. If no, then why have I not received my BPL card?
7. Certified copy of appellant’s application as submitted in 2007
8. Name, designation, phone number, office timings of the officials working in Circle 7.
9. What action would be taken against the officials who have harassed me?
The PIO did not provide any information. Asrey, then filed his first appeal.
During the hearing before the First Appellate Authority (FAA), the appellant stated that since he shifted his residence from one circle to another. He said, he had deposited his below poverty line (BPL) ration card in Bawana circle and has not received his renewed ration card due to which he has to procure ration on slips.
The FAA said, in these circumstances, the case was considered under Clause 11(2) of the PDS Control Order, 2001. He then directed the appellant (Asrey) to contact food security officer (FSO) in Circle 7 for submission of requisite documents. The FAA also directed the inspector to carry out a field visit and, if found eligible, may processed issuance of BPL card.
Asrey, then approached the CIC with his second appeal citing non-supply of correct and complete information by the PIO.
During the hearing, Mr Gandhi, the then CIC, noted that the deemed PIO Ajit Singh to be lying shamelessly. The PIO claimed that on 19 July 2010 he sent the information to Asrey. However, the order issued by the FAA on 29 July 2010 did not mention about any reply sent by the PIO.
Asrey, the appellant informed the CIC that on 3 October 2010, somebody delivered the information at his residence. According to the information, a BPL card no18120080 was issued in the name of the appellant. But Asrey claimed that he never received any card. Mr Gandhi said, “...it appears that sending this information late and trying to avoid it to the appellant may be due to malafide reasons.”
The bench, then directed RTL D'Souza, the additional commissioner of DFCS to inquire into who has got BPL Card no18120080 which was claimed to have been issued and whether any ration has been issued against this card.
While allowing the appeal, Mr Gandhi said, “If rationing has been issued against this card appropriate action should be taken. Mr D'Souza will send the inquiry report to the appellant and the commission before 30 November 2010.”
The bench said, it was apparent that the appellant had been suffering since he had not got his entitlement and the information had also not been supplied to him. “In view of this the Commission decides that the appellant must be compensated for the harassment faced by him in pursuing this matter. For the loss and detriment suffered by him the Commission, under its powers under Section 19 (8)(b) of the RTI Act orders compensation of Rs5,000 to be paid to the appellant,” the CIC said in its order.
Mr Gandhi further said, from the facts before the bench, it was apparent that the deemed PIO was guilty of not furnishing information within the time specified under sub-section (1) of Section 7 by not replying within 30 days. He then issued a show cause notice to the PIO and directed him to give his reasons to the CIC to show cause why penalty should not be levied on him.
CENTRAL INFORMATION COMMISSION
Decision No. CIC/SG/A/2010/002657/10037
Appeal No. CIC/SG/A/2010/002657
Appellant : Ram Asrey
Respondent : Ajay Arora
PIO & Asst. Commissioner
Consumer Affairs, Food & Civil Supplies
GNCTD, Deptt. of Food & Civil Supplies
C Block, Pocket C, Shalimar
In less than 10 years, the cost of Sewri-Nhava Sheva Trans Harbour Link has gone to about Rs10,000 crore from Rs4,000 crore. After some unrealistic bidding in the initial stages, at present not a single bidder is willing to submit a bid for the project that would reduce commuting time between Mumbai and Navi Mumbai
It has been 43 years since the Mumbai Trans-Harbour Link (MTHL) project was first proposed. The MTHL project also known as Sewri-Nhava Sheva Trans Harbour Link, a 22 km freeway grade road bridge was expected to reduce commuting time between Mumbai and Navi Mumbai and provide direct connectivity to Mumbai Port Trust (MPT), Jawaharlal Nehru Port Trust (JNPT) and the proposed Navi Mumbai international airport. Unfortunately, unrealistic bidding by consortiums, especially from both Mukesh and Anil Ambani led consortiums and objections raised by environmental activists as well as JNPT, have only doubled the cost over the years.
The first real attempt to make this project a reality was made in 2004, when IL&FS submitted a proposal to implement the project on a build, own, operate and transfer (BOOT) basis. State-run Maharashtra State Road Development Corporation (MSRDC) also submitted a counter proposal. Although the proposal by IL&FS was discussed by the government, it was side-lined for reasons best known to the authorities.
Then in 2005, MSRDC invited bids for the project. However, the process to receive bids and award the project went on till 2009. A consortium of Anil Dhirubhai Ambani Group
How the cost shot up
The cost of the MTHL has increased several times. In 2005, the cost of the project was estimated at Rs4,000 crore. The cost was revised to Rs6,000 crore in 2008. It was then increased to Rs8,800 crore in November 2011 and finally to Rs9,360 crore in August 2012.
In January 2013, the union government sanctioned Rs1,920 crore, which is 20% of the project cost, in viability gap for the MTHL project. The State Government will also contribute the same amount while the winner is expected to pull in the rest. This also means, the cost of the project has not gone up to Rs9,600 crore, a whopping 240% from the estimated cost of Rs4,000 in just 10 years.
company Reliance Energy (REL) and Hyundai Engineering Construction Company quoted a concession period of nine years and 11 months against 75 years quoted by Mukesh Ambani's Sea King Infrastructure, the only other bidder left in the fray. Significantly, in 2004, the MSRDC taking into consideration the 30-year concession period for the Mumbai-Pune Expressway, had estimated a 35-year concession period for the Sewri-Nhava Sheva Trans Harbour Link project. At that time the cost of the project was estimated at Rs4,000 crore.
Interestingly, the REL-Hyundai consortium was disqualified at the technical bid stage as Hyundai did not meet the criteria of $200 million networth as per the bid documents. Even L&T Gammon Industries and IFFCO, the other bidders opted out of the race leaving Sea King as the only bidder, says a report from Business Standard.
However, according to the report, the REL-Hyundai consortium challenged the disqualification in court and got a favourable verdict from the Supreme Court. The apex court granted the consortium 90 days to submit its bid that ended on 15 December 2007, the report said.
Although the REL-Hyundai consortium won the bid, MSRDC itself was not sure about viability of such a low concession period. MSRDC then re-evaluated the winning bid through London-based Dar Consultants. Business Standard, in a report quoted, the then minister for public works and MSRDC chairman Anil Deshmukh as saying, “The concession periods demanded by both brothers seem to be unrealistic.”
Deshmukh also told Mumbai Mirror that both bids seemed frivolous in nature, and that a final decision would be taken based on the report submitted by the consultants to MSRDC.
Concessional period for a project is the time taken to complete the project, collect the toll to cover the cost, and then hand over the project to the government.
The state government then decided to invite fresh bids for the project in 2008. Although, the fresh round of bidding saw as many as 13 companies evince interest in the project, none submitted bids. At that time the cost of the project was revised to Rs6,000 crore.
Then in 2011, the Mumbai Metropolitan Region Development Authority (MMRDA) stepped into the scenario. In August, MMRDA appointed Arup Consultancy Engineers and KPMG to conduct the techno-economic feasibility of the Sewri-Nhava Sheva Trans Harbour Link. Again, the cost of the project was increased to Rs8,800 crore from original estimate of Rs4,000 crore.
In May 2012, the MMRDA shortlisted five consortia out of six that had expressed interest in the project. They are Cintra-SOMA-Srei, Gammon Infrastructure Projects -OHL, Concessions-GS Engineering, GMR Infrastructure-L&T -Samsung C&T Corp, IRB Infrastructure Developers-Hyundai, and Tata Realty and Infrastructure-Autostrade Indian Infrastructure Development Pvt Ltd-Vinci Concessions Development V Pte Ltd.
In the meantime, the cost of Sewri-Nhava Sheva Trans Harbour Link was again revised to Rs9,360 crore in August 2012.
On 22 October 2012, Maharashtra chief minister Prithviraj Chavan gave clearance to the project. Next day, the ministry of environment and forests (MoEF) gave a conditional environmental clearance to the sea link project. Some of the conditions were that the MMRDA should put up noise barriers, replant five times the number of mangroves destroyed, no dredging and reclamation, use construction equipment with exhaust silencers and work in consultation with the Bombay Natural History Society to minimize the impact on migratory birds.
October 2012 turned out to be an eventful month for the Sewri-Nhava Sheva Trans Harbour Link. Following the clearances from the state government and MoEF, on 31st October, the Department of Economic Affairs (DEA) also granted an in-principle approval for the MTHL. The DEA recommended granting Rs1,920 crore with a concession period of 35 years for the project.
On 9 November 2012, the state government issued a state-support agreement and a toll notification for the project. The empowered committee approved viability gap funding (VGF) for MTHL on 12 December 2012. Later on 18 January 2013, union finance minister P Chidambaram cleared the project.
Although the MMRDA shortlisted five consortiums for the project, so far is has not received any bids. According a report in the Times of India, the state government has finally decided to construct the Mumbai Trans-Harbour Link on its own if it does not receive a bid on 5 August 2013.
Quoting UPS Madan, metropolitan commissioner, MMRDA, the report said, “...this time the government will not let the project fall for want of funds. If we do not receive any bids on August 5 then we shall go on our own”.
In January 2013, the union government sanctioned Rs1,920 crore, which is 20% of the project cost, in viability gap for the MTHL project. The state government will also contribute the same amount while the winner is expected to pull in the rest.
This also means, the cost of the project has not gone up to Rs9,600 crore, a whopping 240% from the estimated cost of Rs4,000 in just 10 years. Unfortunately, it is the common people who will have to foot the bill either directly (through toll) or indirectly (through various taxes).