Nifty moves higher on positive cues
Indian markets opened Friday with the highest gap up since 26 May 2014. Positive closing of the US indices on Thursday helped the upward momentum at home. The S&P BSE Sensex opened 25,205 (up 185 points) while the NSE 50-share Nifty opened at 7,522 (up 47 points). After a range bound session till 2.00 pm, during which they hit their intra-day lows of 25,130 and 7,498. After around 2.00 pm the benchmark indices started rising and hit a high of 25,419 and 7,593, and closed almost near the intra-day high. Sensex closed at 25,396 (up 377 points or 1.51%) while the Nifty closed at 7,583 (up 109 points or 1.46%). The NSE recorded a volume of 164.52 crore shares. India VIX rose 3.46% to close at 15.9825.
Monsoon rains reached the Kerala coast, weather officials reportedly said. India's weather office had forecast a delayed onset for this year's monsoon on around 5th June, instead of the normal onset date on 1st June.
Food Minister Ram Vilas Paswan was quoted as saying, that the government will examine raising import tax on sugar to support local prices and help mills clear dues to cane growers which are estimated at Rs11,000 crore.
Government officials on Thursday, reportedly said that the oil ministry has to decide on gas pricing issue by 1 July 2014 and that more clarity on the issue may be reached next week. ONGC (10.57%) was the top gainer in the Sensex 30 pack.
Prasad Thrikutam is the latest addition to the series of exits from Infosys, he was the the global head for sales and marketing. The stock was among the top two losers (1.26%) among the Sensex 30 stock.
Tata Global Beverages (11.23%) top gainer in the ‘A’ group on the BSE. The scheme of amalgamation of Mount Everest Mineral Water Limited with the company was approved by the shareholders in the meeting held on 4 June, 2014.
Muthoot Finance (2.74%) was the top loser in the ‘A’ group on the BSE. The company was in the news recently after the Government of Singapore picked up a 1.06% stake in the company. This share purchase transaction was part of the recent institutional placement programme by the company raising Rs418 crore.
Asian indices showed a mixed performance. Among the indices which were trading today, Straits Times (0.60%) was the top gainer, while Hang Seng (0.69%) was the top loser.
European indices were trading in the green. US Futures were also trading a little higher.
European Central Bank on Thursday cut its benchmark interest rates to unprecedented lows, spurring speculation that the decision will accelerate capital inflows.
In the SMS and WhatsApp messages, investors were promised 200% assured returns on deposit payments of Rs25,000, along with promises of trading tips
Capital markets regulator Securities and Exchange Board of India (SEBI) has widened its probe into suspected investment scams through mobile SMS and mobile messenger services like WhatsApp, which are being used to lure investors with a promise of huge returns after initial payments.
Two individuals — Mansoor Rafiq Khanda and Firoz Rafiq Khanda — were on Thursday restrained by SEBI from acting as investment advisors ,after they were allegedly found offering unauthorised ‘trading tips’ through SMS and WhatsApp messages via mobile phones.
SEBI has ordered a further probe into the scam after it noted that the “modus operandi” of these two individuals, as well as names of the operators in this case are similar to the case of Imtiyaz Hanif Khanda and Vali Mamad Habib Ghaniwala, where the regulator had passed restraint orders in August 2013 and December 2013.
“Considering these facts of the case, it may be appropriate for further investigations to find out the connection, if any, between the entities hereinabove (Mansoor and Firoz) and the entities in the orders dated August 20, 2013 and December 30, 2013,” the SEBI said in its interim order issued on Thursday.
The regulator had begun a preliminary probe involving Mansoor and Firoz after complaints that certain entities were offering trading tips through SMS and WhatsApp sent from five distinct mobile numbers, as also some websites.
In these messages, the investors were being promised 200% assured returns on deposit payments of Rs25,000, along with promises of trading tips. The messages also promised monthly gains of Rs25-50 lakh.
Based on the complaint, SEBI undertook the probe by making telephone calls to the concerned mobile numbers and were directed to make necessary payments through a website.
Subsequently, the regulator zeroed on the two Surat residents — Mansoor Rafiq Khanda and Firoz Rafiq Khanda — based on the details gathered of the bank accounts where the money was to be deposited by investors.
According to SEBI, the entities were prima facie acting as investment advisors without necessary regulatory approvals.
“A detailed investigation may bring to light the depth of such activities that are carried out by these entities and the extent of losses caused to investors,” the regulator said.
To safeguard investors' interest, SEBI has asked Mansoor and Firoz as also their associated companies to cease and desist from acting as investment advisors and not to solicit or undertake such activities or any other unregistered activity in the securities market.
They have also been asked to immediately withdraw and remove all advertisements, brochures, documents, and websites, among others, in relation to their investment advisory or any unregistered activity in the securities market.
At the same time, SEBI also cautioned “investors to take their informed investment decisions without being influenced by such messages and advices and to deal with only intermediaries registered with SEBI”.
The government has decided to undertake fresh valuation and assessment of fair share value of HZL to reduce or sell its entire 29.5% stake in the Vedanta group company
The Finance Ministry has started the process for a fresh valuation of Hindustan Zinc Ltd (HZL), seeking to push through a long-pending sale of the government's residual stake in the company in the current financial year.
The Department of Disinvestment has invited proposals from merchant bankers or chartered accountant firms with experience in handling valuation of companies.
"The government has decided to undertake fresh valuation and assessment of the fair share value of HZL," the department said. Proposals have been sought by 27th June, it added.
HZL had a paid-up capital of Rs845 crore as of 31 March 2013. The government holds a 29.54% stake in the company.
The government sold its majority stake in the erstwhile public sector unit to the Vedanta Group during 2001-03. At present, London-listed Vedanta holds a 64.92% stake in HZL.
Last October, Vedanta shareholders approved increasing the offer to acquire the government's remaining stake in HZL.
The Vedanta board is now empowered to make an offer of up to Rs21,636.56 crore for the government's stake.
At the current share price of Rs172.50, the HZL stake sale would fetch about Rs21,500 crore.
The department was waiting for the general elections to get over before proceeding with the appointment of valuers for HZL.
Hindustan Zinc closed 2.8% higher on Friday, at a price of Rs173 on the BSE, while the S&P BSE Sensex too ended the day 1.5% up at 25,396.