The market closed well above yesterday’s high and may hit 5,365, and then 5,400
Dispelling fears of taxes on investments through P-Notes by the government saw the market move higher since the opening bell. We had mentioned in our closing report yesterday that if the Nifty manages to close above 5,195, the downtrend may be arrested. Today the index went on to hit its five-day intraday high (including today) and more than covered the losses incurred in the prior two days. The index managed to even close above its 20-day moving average and witnessed a maximum percentage gain since 3rd January 2012.
If the benchmark manages making higher high and stays above 5,290, we may see an upmove to the level of 5,365, and then up to 5,400. The Nifty saw a huge gain on lower volume of 71.40 crore shares on the National Stock Exchange (NSE).
The market opened on a positive note following assurance from finance minister Pranab Mukherjee that government on Thursday will clarify its position on taxation of investments from overseas, amid foreign institutional investors (FIIs) expressing concern on the proposed anti-tax avoidance rules. The Nifty opened 28 points up at 5,207 and the Sensex gained 58 points to resume trade at 17,117.
Across-the-board buying saw all sectoral indices trading with gains as trade progressed. Fresh assurances from the finance minister that persons investing in stock markets through P-Notes will not have to pay taxes in India, pushed the market further northward in post-noon trade. The market hit its intraday high around 3.00pm with the Nifty touching 5,307 and the Sensex climbing to 17,440.
The market closed a tad of the highs with the Nifty gaining 117 points (2.25%) to 5,296 and the Sensex jumping 346 points (2.03%) to settle at 17,404.
The advance-decline ratio on the NSE was positive at 1321:424.
Among the broader indices, the BSE Mid-cap index jumped 2.35% and the BSE Small-cap index surged 2.04%.
The rally saw all sectoral indices settling higher. The main gainers were BSE Oil & Gas (up 2.82%); BSE Realty (up 2.61%); BSE Metal (up 2.58%); BSE PSU (up 2.57%) and BSE Bankex (up 2.55%).
The Sensex was led by Tata Steel (up 4.04%); Maruti Suzuki (up 3.76%); Hindalco Industries (up 3.73%); ICICI Bank (up 3.64%) and Reliance Industries (up 3.23%). Jindal Steel (down 0.69%) and Sun Pharma (down 0.23%) were the laggards on the index.
The Nifty toppers were Kotak Mahindra Bank (up 4.84%); IDFC (up 4.61%); SAIL (up 4.02%); Ranbaxy (up 3.73%) and Hindalco Ind (up 3.69%). The key losers were Cairn India (down 0.98%); Jindal Steel (down 0.74%); Sun Pharma (down 0.67%) and Hindustan Unilever (down 0.33%).
Markets in Asia settled mostly higher on hopes of European policymakers, who are meeting to day, would hike the Eurozone bailout fund to help cash-strapped nations. The gains were also supported by better-than-estimated earnings from Chinese banks.
The Shanghai Composite rose 0.47%; the Jakarta Composite gained 0.40%: the KLSE Composite climbed 0.69%; the Straits Times advanced 0.55% and the Taiwan Weighted settled 0.77% higher. Bucking the trend, Hang Seng declined 0.26%; the Nikkei dropped 0.31% and the Seoul Composite shed 0.02%. At the time of writing, the key European indices were 0.60% to 1.22% higher and the US stocks futures trading in the green.
Back home, foreign institutional investors were net sellers of a huge Rs1,332.85 crore worth of stocks on Thursday, a large part of which would have a block deal by a private equity investor (possibly Warburg Pincus sale of Kotak Mahindra Bank), while domestic institutional investors were net buyers of shares totalling Rs229.67 crore.
State-run Oil & Natural Gas Corporation (ONGC) plans to sign an agreement with ConocoPhillips on the exploration and development of shale-gas reserves and deep-water oil and gas blocks. ConocoPhillips is the third-largest integrated energy company in the US and the fifth-largest refiner in the world. The Indian exploration major gained 3.05% to close at Rs268.35 on the NSE.
Medium and heavy vehicle major Ashok Leyland has said that it will form a separate subsidiary as it explores expansion into the aerospace business with global partners. This is part of the automaker’s plan to diversify beyond manufacturing vehicles. The stock jumped 4.30% to settle at Rs30.30 on the NSE.
Strides Arcolab has received USFDA approval for Methotrexate Injection USP 25 mg/ mL packaged in 1 gram/ 40 m, 50 mg/2 mL, 100 mg / 4 mL, 200 mg/ 8 mL and 250 mg / 10 mL single-dose vials (preservative-free). Methotrexate is a chemotherapy drug used either alone or in combination with other agents. It is used as a treatment for some autoimmune diseases including rheumatoid arthritis, psoriasis, psoriatic arthritis, lupus and Crohn's disease, to name a few. Strides finished 1.18% lower at Rs582.20 on the NSE.
The US government has always been a mouth-piece of American big business. That is why the protest of US commerce secretary John Bryson against India giving a compulsory licence to Natco Pharmaceuticals to produce a generic version of a patented anti-cancer drug leaves a bad taste in the mouth
Granted, it has been a unipolar world since Mikhail Gorbachev made it so, though Ronald Reagan took credit for defeating the "evil empire". Granted, the US can now justifiably claim the post of the world's big and only policeman.
In an ideal world, one of the roles of the policeman is to protect the poor from the predators (please don't laugh; it happens sometimes.) That is why the protest of US commerce secretary John Bryson against India giving a compulsory licence to Hyderabad-based Natco Pharmaceuticals to produce a generic version of a patented anti-cancer drug leaves a bad taste in the mouth.
The government has allowed Natco to produce a generic version of Bayer's patented cancer drug called Nexavar. This will bring down the price of the drug by 97%. Natco will sell the drug at around Rs8,880 for a month's therapy of 120 tablets against Rs2.8 lakh charged by Bayer. Experts say that this decision paves way for cheaper drugs in several other areas.
The US government has always been a mouth-piece of American big business. A large portion of its diplomatic effort is aimed a protecting "big, vulnerable MNCs" from the depredations of "poor, small, bad wolves" protecting the poor in their countries.
Therefore it was no surprise when commerce secretary Bryson repeated, almost word to word, Bayer's arguments against India granting the compulsory licence to Natco.
Mr Bryson told Anand Sharma that India's action would discourage new investments in drug R&D (research and development) and dilute the international patent regime. He said "pharmaceuticals is a very competitive area and heavy investments went into research and development every year. Any dilution of the international patent regime is a cause of deep concern for the US". Considering the tremendously cheaper price at which Natco will supply the drug, the US commerce secretary's words leave a bad taste in the mouth.
Now, let us take a look at this news item reported by Sky News, the British television channel.
A man suffering from the deadliest form of skin cancer told Sky News how a new drug brought him back from the brink of death. Charlie Jones woke up two weeks ago from emergency surgery on tumours that had spread to his kidneys to be told he had a matter of hours to live.
But doctors at the Christie Hospital in Manchester decided to try out a drug called Vemurafenib that has only just become available. To their amazement, his response was almost immediate. He is now much better and has returned home.
"Since I've been taking the drug I have been getting stronger and stronger," he said. "I'm getting colour in my face. My body is feeling a lot better. It's helping me feel like the old me."
Charlie and his girlfriend Louise Howard now hope to get married.
The drug is expected to be supplied to other cancer patients through Britain's National Health Service (NHS), which means it will be practically free.
Doesn't this make us all feel better and take away the bitter taste left by the US commerce secretary's words?
(R Vijayaraghavan has been a professional journalist for more than four decades, specialising in finance, business and politics. He conceived and helped to launch Business Line, the financial daily of The Hindu group. He can be contacted at [email protected].)
CBI director AP Singh had examined a report forwarded by one of the joint directors of the agency who had opined that a case could be made out and a thorough investigation was required
New Delhi: Central Bureau of Investigation (CBI), the Indian premier investigative agency, on Friday registered a case in connection with the supply of all-terrain Tatra trucks through state-owned BEML to the army and called for questioning Vectra group chairman Ravi Rishi who is a majority stake holder in Tatra, reports PTI.
CBI sources said British national Mr Rishi, who is in the national capital for the Defence Expo, has been called for questioning in the connection with the alleged irregularities in the deal.
CBI director AP Singh had examined a report forwarded by one of the joint directors of the agency who had opined that a case could be made out and a thorough investigation was required, the sources said.
The deal came under scanner after army chief General VK Singh had alleged that he was offered a Rs14 crore bribe to clear a file related to purchase of trucks.
The defence ministry has sent a reference to the CBI seeking a probe in the allegations. However, the agency is waiting for a complaint from Gen Singh before initiating a probe into his allegations.
The sources said based on the reference, two separate cases could be registered by the agency-one related to the deal and another to the alleged bribery offer.
Reacting to alleged involvement of agents and lobbyists in placement of orders for the Tatra trucks, state-owned BEML chief VRS Natarajan has said, "In last 26 years, from 1986 onwards, BEML assembled manufactured, supplied 7,000 Tatra trucks. All of them have been done on single nomination basis, single inquiry basis.
"This type of equipment nobody in world makes, because of its superior technological features. When I am the single vendor and there is no competition, there is no influence required," he said.
The name of Tatra and Bharat Earth Movers was taken by the army in a press release issued by it on 5th March, alleging that retired Lt Gen Tejinder Singh had offered a bribe on behalf of Tatra and Vectra.