A decisive break of the low of any previous day will signal a possible reversal
Hopes of a cut in key interest rates by the Reserve Bank of India (RBI) following dismal industrial output numbers for April pushed the market higher. The six days of positive move on the Nifty, which happened since 4 June 2012 has retraced nearly 62% of the fall that happened between 20 April 2012 and 4 June 2012. Yesterday we had mentioned that the market may try to rally after a minor dip. Today the Nifty fell to the level of 5,015 and went to hit a 27-day high of 5,129 (after 4 May 2012). If the benchmark manages to close above 5,140 we may still see the upward trend continuing, however, watch out for previous day’s low. The National Stock Exchange (NSE) saw a volume of 62.04 crore shares
The market opened lower ahead of the release of industrial output numbers for April and on concerns that the release of financial aid to Spanish banks would not be the end of Europe’s debt problems. Markets in Asia were weak in morning trade as investors became increasingly worried about the unending problems in Europe. Back home, the Nifty opened 38 points lower at 5,016 and the Sensex resumed trade at 16,571, a cut of 97 points from its previous close.
The benchmarks fell to their intraday lows in initial trade itself with the Nifty at 5,015 and the Sensex going back to 16,553.
Meanwhile, the rupee lost 11 paise to Rs55.85 against the dollar in early trade following dollar gains against other currencies overseas amid a weak trend in the equity market. The Indian unit had closed at 55.74 against the greenback in the previous session as dollar demand from banks and corporates emerged at fag-end after S&P warned that it could lower India's sovereign rating.
Although the Index of Industrial Production (IIP) for April came in at a meagre 0.1%, buying interest on hopes that the Reserve Bank of India (RBI) would cut interest rates in its mid-quarter review next week pushed the indices in the positive in late morning trade.
The market extended its gains in subsequent trade on support from banking, auto, oil & gas, metals and capital goods sectors. A positive opening of the key European markets also boosted investor confidence.
Across-the-board buying by institutional investors in late trade helped the benchmarks continue their northward journey. The market hit its intraday high in the last half hour. At this point the Nifty rose to 5,129 and the Sensex scaled 16,897.
The market closed marginally off the highs. The Nifty gained 62 points at 5,116 and the Sensex finished the session at 16,863, up 195 points over its previous close.
The advance-decline ratio on the NSE was positive at 871:779.
While the broader markets also closed higher, they underperformed the Sensex. The BSE Mid-cap index gained 0.62% and the BSE Small-cap index rose 0.28%.
Barring the BSE Healthcare index (down 0.40%), all other sectoral gauged settled in the green. They were led by BSE Realty (up 2.01%); BSE Bankex (up 1.90%); BSE Capital Goods (up 1.84%); BSE Auto (up 1.76%) and BSE Consumer Durables (up 1.52%).
The top Sensex gainers were Maruti Suzuki (up 3.48%); Tata Motors (up 3.14%); Larsen & Toubro (up 2.53%); Sterlite Industries (up 2.51%) and Hindalco Industries (up 2.16%). The losers were Dr Reddy’s Laboratories (down 1.81%); Wipro (down 1.71%); Hindustan Unilever (down 0.57%); Sun Pharma (down 0.20%) and Tata Power (down 0.10%).
Ambuja Cement (up 5.81%); Punjab National Bank (up 4.06%); ACC (up 3.18%); Tata Motors (up 3.14%) and DLF (up 3.03%) were the top performers on the Nifty. The main lowers on the index were Wipro (down 1.84%); Dr Reddy’s Laboratories (down 1.74%); Ranbaxy Laboratories (down 1.13%); HUL (down 0.95%) and Jaiprakash Associates (up 0.51%).
Markets across Asia closed lower as investors expressed doubts that the bailout package to Spanish banks would not ease the problems plaguing the Eurozone nations. Investors will now turn their focus on fresh elections in Greece, slated to take place on 17th June and Italian problems.
The Shanghai Composite dipped 0.70%; the Hang Seng fell 0.43%; the Jakarta Composite slipped by 0.35%; the KLSE Composite lost 0.15%; the Nikkei 225 dropped 1.02%; the KOSPI Composite fell by 0.66% and the Taiwan Weighted settled 0.68% lower. Bucking the trend, the Straits Times gained 0.33%.
At the time of writing, the key European markets were trading with gains of nearly half a percent and US stock futures were trading higher.
Back home, foreign institutional investors were net buyers of shares totalling Rs130.38 crore on Monday while domestic institutional investors were net sellers of equities aggregating Rs214.66 crore.
Pharma major Venus Remedies today said it has received patent from the US Patent Office for new antibiotic product which targets drug resistant infections. The product, CSE 1034, has been found to be effective against a wide range of drug-resistant infections, including the ‘superbugs,’ the company said in a statement. The stock jumped 4.82% to close at Rs175.05 on the NSE.
Pennar Engineered Building Systems (PEBS), a subsidiary of Pennar Industries, has received two orders. The first is from Tata Steel Group Company in Hyderabad and second from Jayabheri Orange County. Pennar Industries closed at Rs28.40 on the NSE, up 4.60% over its previous close.
Nava Bharat Ventures has commenced work on its 2x150 MW (300 MW) power plant in Zambia. It is also taking up production of coal at the Maamba Collieries. The company plans to invest up to $750 million in the thermal power plant and coal mining activity. The stock gained 0.68% to close at Rs177 on the NSE.
The PIL filed by BJP's former leader Govindacharya, seeks recovery of taxes onof Google and Facebook from India and data safety of Indian users
New Delhi: The Delhi High Court on Wednesday sought responses of
"Issue notice to the respondents. The Centre is its reply within four weeks," a bench of Vipin Sanghi and Rajiv Shakdher said.
Govindacharya, presently a of 'Rashtriya Swabhimaan Aandolan', in a public interest litigation (PIL) , has also sought directions to the Centre and the two websites to "ensure proper compliances as per RBI guidelines".
The petition also sought a direction to ensure safety of the data of 50 million Indian users, which were transferred "to the USA and being used for commercial gains in violation of the right to privacy."
"Issue a writ of mandamus ...to ensure verification of all existing users and future new members of social networking websites with instructions not to do agreements with children below 13 years," said the plea, filed through lawyer Virag Gupta.
The plea also sought creation of a national register of persons, indulging in sexual offences and heinous crimes and stopping such persons from joining social networking websites.
The petition, which listed the alleged violations of various terms by the websites, also sought a direction to the Centre to ensure that government officers "do not use social networking websites through government computers" as they may pose threat to sensitive data and national computer network.
"As per telecommunication ministers statement in Parliament, the government lost $4 billion every year due to cyber-crimes and approximately 90 million government websites were hacked in last 3 years," it said.
Govindacharya, in his PIL, said "Facebook gross revenue for previous year was approximately $37 billion but they are not paying due taxes on their Indian operations as per the provisions of Double Tax Avoidance Agreement (DTAA) and the government is not taking any action to safeguard the national interest and the sovereignty of the country."
Anonymous hackers have again threatened to attack the government websites from 9th June "to protest blocking of websites illegally sharing video contents," the petition said.
It also sought directions to the Centre to impose penalty on social networking sites and other internet companies "for non-verification of users and to recover damages for causing huge loss to the government and the Indian economy due to anonymous users' illegal operations through such sites."
Referring to a report of Mumbai ATS, the PIL said the accused of the 13th July blast in Mumbai last year were in touch with each other and the Indian Mujahideen operatives through Facebook since 2008.
"Facebook is one of prominent social networking website with more than50 million Indian users and as per their own records approximately 5% to 6% of their accounts are fake or being operated by anonymous users due to non-authentication of details by the company before opening of accounts as required by their terms of agreement," it said.
The Centre's KYC (know your customer) guidelines, applicable to the telecom companies are not being followed by the social sites which is "causing the biggest security risk to the nation", it said.
"As per reports, Facebook has further allowed account opening by children below 13 years of age who may be 1/3rd of their registered users just to exploit online gaming market and increase advertisement revenue," it said.
You may be nastily surprised that your ATM has run out of money when you really need it
On 12 June 2012, we went to Oriental Bank of Commerce at HAL III Stage, Bengaluru, at 8.15am to withdraw money from the ATM. The transaction was declined. We were surprised as this was a Tuesday and not a Monday when ATMs sometime run out cash. We hopped across to the Canara Bank ATM across the road and here also we faced the same situation. The transaction was declined. A Canara Bank staffer informed us that the banks had outsourced the entire process of uploading the cash in the ATM machines to a sub-contractor. This contractor hadn't done his duty of replenishing the ATM machine. What is the use of such ATMs? It is ironical that these are the banks that claim to be doing great business. You will be surprised to note that there are no standard operating instructions on how to use the ATM cards.
The ATM rooms were filled with scrap in both the banks. A senior citizen who followed us to withdraw cash at the Canara Bank was ATM was shocked when he got a SMS saying his account was debited though the transaction was declined by ATM. We pacified him and asked him to take a Photostat copy of the transaction slip in case it was needed for future correspondence with the bank. When will these nationalized banks improve?
When we called up the Canara Bank branch later, we were informed that both the branch manager and assistant manager were on leave and that the contractor who was supposed to have loaded the cash in the machine had not turned up. If someone needed cash urgently on a Monday morning, what would he do? Whenever banks talk about core banking solutions (CBS), we have to take it with a pinch of salt. Most nationalized banks have CBS as part of their strategy of-"We are also into CBS" but they have very little knowledge in case there is a problem with the technology.
I have seen bank officials in other banks (Indian Bank, for instance) personally uploading the cash in the ATM machine. Then what is prompting banks such as Canara Bank and OBC to outsource these activities? A few days back there were reports that ATM machines in Bengaluru were broken into and cash stolen by thieves. Point to be noted here is that both the ATMs are located exactly opposite each other do not have a security guard too.
What is the use of technology if it can't come to our aid at time of need? The branch executive in Canara Bank coolly asked us to write an email to the CMD. OBC's official opening hours are 10am but the staff breeze in only by 10.30am. We are sure what the response is going to be in from OBC too -a simple apology and asking us to a send an email to the customer service cell. Banks need to ponder over the fact that despite having the best technology at their disposal, they still have to deal with the human inefficiencies in their system while customers must think twice about blindly relying on ATMs. They may get badly stuck when they really need the money.