Nifty is falling on low volumes and could bounce back intraday but the trend is down. Only a close above 6,275 could be the first sign of a new uptrend
For the third consecutive session the Nifty has traded in the negative for the entire trading session. The market hit a six-day low (including today) and closed near to it. The Sensex opened at 21,101 and hit the day’s high almost at the same level at 21,104 while the Nifty which opened at 6,277 hit its high immediately at 6,287. After the initial slide down on the bourses, the indices had a range bound move for almost the entire trading session. In the last hour of the trading session the benchmarks fell further and hit the low of 20,901 and 6,231. The Sensex closed at 20,926 (down 246 points or 1.16%) and the Nifty closed at 6,237 (down 71 points or 1.12%). The third consecutive day of fall on the NSE was on a lower volume 51.98 crore shares.
All the other indices on the NSE closed in the negative. The top five losers were Auto (2.13%); Metal (1.36%); PSE (1.28%); Bank Nifty (1.26%) and Dividend Opportunities (1.24%).
Of the 50 stocks on the Nifty, 10 ended in the green. The top five gainers were Tata Power (4.07%); Ranbaxy (1.47%); HDFC (0.95%); Jaiprakash Associates (0.84%) and Lupin (0.51%), while the top five losers were Tata Motors (4.69%); IndusInd Bank (3.52%); Ambuja Cements (3.43%); ONGC (2.95%) and Coal India (2.79%).
Out of the 1,222 companies on the NSE, 406 closed in the green, 749 closed in the negative while 67 were flat.
The government will unveil industrial production data for October 2013 and general consumer price index (CPI) for November 2013 after trading hours today.
The Securities and Exchange Board of India unveiled new proposals on Wednesday, broadening the scope of who can be held liable for insider trading violations. India's financial market regulator plans to include company employees, directors and their immediate relatives and other stakeholders such as founders, handling market sensitive information under its purview. Under current rules only senior executives are liable for trading violations. Officials with access to sensitive information will also be required to submit planned trades in company shares ahead of time to resolve any potential conflict of interest. The new proposals also mandate that every listed company and market intermediary formulate a code of conduct to regulate, monitor and report trading in securities by its employees or connected persons. Trades by stakeholders, employees, directors and their immediate relatives would need to be disclosed internally to the company.
The Reserve Bank of India on Wednesday said it has decided to provide additional liquidity of Rs10,000 crore through the 14-day term repo scheduled to be conducted on Friday, 13 December 2013. Accordingly, the notified amount for the 14-day term repo auction to be conducted on that day will be adjusted upwards by Rs10,000 crore. The RBI said it has announced this additional liquidity support for the banking sector so as to ensure that adequate liquidity is available to support the flow of credit to the productive sectors of the economy. The RBI said that the liquidity conditions are expected to tighten in the immediate future on account of advance tax payments commencing from mid-December 2013.
US indices closed in the negative on Wednesday. The indices was hit on account of a provisional budget deal inked in the US, between Republicans and Democrats, which intends to reduce the amount of borrowing. This is one more indication that tapering could begin.
Except for NZSE 50 (up 0.08%) all the other Asian indices closed in the negative. Jakarta Composite was the highest loser which fell 1.39%.
European indices were trading in the red. The US Futures were also trading lower.
Quashing the sale of properties of minor daughters by a widow 25 years ago, the Supreme Court has said that, under the Hindu Minority and Guardianship Act, such property cannot be sold without prior permission of courts.
“As per Clause (a) of Sub-section (2) of Section 8, no immovable property of the minor can be mortgaged or charged or transferred by sale, gift, exchange or otherwise without the previous permission of the court,” a bench of SJ Mukhopadhyaya and V Gopala Gowda said. Further, it said, “Under Sub-section (3) of Section 8, disposal of such an immovable property by a natural guardian, in contravention of Sub-section (1) or Sub-section (2) of Section 8, is voidable at the instance of the minor or any person claiming under him.”
The Court turned down the mother’s plea who justified selling the property to take care of her minor daughters and for their livelihood. The Court passed the order on a petition filed by the daughters, who are now major, challenging the sale of the property by their mother in 1988.
The Securities Appellate Tribunal has reduced penalty imposed by SEBI on realty firm Rose Valley by Rs90 lakh to just Rs10 lakh
The Securities Appellate Tribunal (SAT) while upholding order issued by Securities and Exchange Board of India (SEBI) against Rose Valley Real Estates And Construction, has drastically reduced the fine amount.
SAT reduced the quantum of penalty imposed on the real-estate company by the market regulator to Rs10 lakh from Rs1 crore and asked Rose Valley to pay the fine within two months.
The case is related to a probe by SEBI over charges that Rose Valley had raised money by issuing debentures between the years 2001-2008 to more than 49 persons in each of the fiscal years without complying with the regulator's norms for the same.
SEBI had sought details from Rose Valley that could have helped the regulator probe the matter but the firm had failed to fully comply with the market regulator's summons.
In March 2013, SEBI slapped a penalty of Rs1 crore on Rose Valley for non-compliances with its summons following which the company had approached SAT challenging the regulator's order.
After holding a hearing, SAT on Thursday said that Rose Valley "has been willing to furnish documents relating to issuance of debenture through private placement from time to time and has in fact fully furnished particulars though belatedly in the adjudication proceedings which were also initiated belatedly".
Accordingly, SAT ruled that it was "inclined to modify the impugned order dated March 26, 2013 and to reduce the monetary penalty to Rs 10 lakh to be paid by the appellant (Rose Valley) within two months from the date of passing of this order while upholding the rest of the impugned order failing which the respondent (SEBI) shall be at liberty to recover the same as per law".
SEBI had initiated a probe against Rose Valley following a reference from Registrar of Companies (RoC), West Bengal that the firm had repeatedly issued debentures in financial years from 2001 to 2008 without filing necessary documents.