Short decline now on the Nifty may form a basis for pushing up of the index further
Indian market on Tuesday witnessed a highly volatile session. In line with the US and Asian markets where most of the indices closed in the red, the benchmark in India too ended in the negative after hitting an all time high.
The BSE 30-share Sensex opened at 21,948 while the NSE 50-share Nifty opened at 6,550. Sensex moved in the range of 21,917 and 22,080 and closed at 22,055 (down 0.27 points). Nifty moved between 6,545 and 6,596 and closed at 6,590 (up 6 points or 0.09%). The NSE recorded a volume of 69.43 crore shares.
Except for Energy (0.97%), IT (0.69%) and Media (0.14%) all the other indices on the NSE closed in the green. The top five gainers were Infra (1.38%), Realty (1.36%), PSE (1.24%), CPSE (1.11%) and Nifty Midcap 50 (1%).
Of the 50 stocks on the Nifty, 30 ended in the green. The top five gainers were Bhel (4.23%), DLF (3.61%), Hero MotoCorp (3.07%), Jindal Steel (2.87%) and Ranbaxy (2.48%). The top five losers were Reliance Industries (3.05%), Wipro (2.75%), Ambuja Cements (1.85%), Sesa Sterlite (1.77%) and M&M (1.48%).
Of the 1,564 companies on the NSE, 656 closed in the green, 811 closed in the red while 97 closed flat.
BHEL has received an order worth Rs3,000 crore from NTPC, for supply of steam generators for an upcoming power project in Odisha. It involves supply of 2x800 MW steam generators (boilers) with super critical parameters for the project at Darlipali in Odisha. BHEL (4.41%) was the top gainer in the Sensex 30 stocks which closed at Rs196.50 on the BSE.
Among the top laggers in the ‘A’ group on BSE yesterday, today was among the top five gainers. Financial Technologies rose 5% to close at Rs376.25 on the BSE. The company has entered into a share purchase agreement for sale of 13,64,787 equity shares of IEX to Golden Oak (Mauritius) Limited, for a consideration of Rs72.89 crore. The above said sale of shares was to comply with Central Electricity Regulatory Commission (CERC) Regulations to bring down the company’s stake in IEX to 25%. Subsequent to the above transaction, the shareholding of the company in IEX will be 28.49% and on fully diluted basis 25.64%.
Reliance Industries, the top loser in the Sensex – 30 stocks, fell as the Election Commission has reportedly ordered deferment of an increase in gas prices that was to take effect from 1 April 2014. Reliance Industries (2.87%) closed at Rs878.65 on the BSE.
The Bharatiya Janata Party (BJP) said the party will review the new gas pricing formula if elected to power after general elections. "If we are voted into power we would have to look at all the facts, all the realities on the ground, while keeping the interest of stakeholders in mind - in particular consumers. If this means going for a review we will review the pricing formula," Narendra Taneja, National Convener, Energy Cell, for the BJP said in an interview to a news agency.
US indices closed in the negative on Monday. Markit on Monday said its preliminary or flash PMI index tallied 55.5 in March, just slightly below February's nearly four-year high. Any number over 50 signals growth.
Most of the Asian indices closed in the red. Taiwan Weighted (up 0.98%) was the top gainer while Hang Seng (down 0.52%) was the top loser.
China's economy may still grow around 7.5% this year despite signs of a slowdown, and there is no immediate need for the government to roll out fresh stimulus measures, Asian Development Bank President Takehiko Nakao said on Monday.
MFs would be required to disclose certain additional details about their assets under management (AUM) as well as explain rationale behind exercising their voting rights in companies from 1st April
Market regulator Securities and Exchange Board of India (SEBI) has asked mutual fund (MF) houses to make monthly disclosures about assets managed by them and explain the rationale behind exercising their voting rights in companies. This is the part of a long-term policy issued by SEBI for mutual fund and would come into force from 1 April 2014.
The long-term policy for the over Rs9 lakh-crore MFs industry aims to make it an attractive investment proposition for retail investors and also provides for bolstering distribution channels. It has suggested selling of mutual funds through public sector banks and online to increase their penetration.
In a circular, SEBI said MFs would be required to disclose certain additional details about their assets under management (AUM) on a “monthly basis”. Besides, the data has to be put on a consolidated basis on the website of Association of Mutual Funds of India (AMFI) within seven working days of the month.
Also, MFs should disclose the rationale while exercising their voting rights in investee companies. “Asset management companies (AMCs) shall be required to record and disclose specific rationale supporting their voting decision (for, against or abstain) with respect to each vote proposal,” according to the SEBI circular.
Some of the important guidelines from SEBI are listed below:
Disclosure of AUM
(a) Disclosure of assets under management (AUM) on a monthly basis.
(b) The disclosures will include contribution of AUM from different category of schemes; top tier and other cities; sponsors and associates; entities other than sponsor and associates; investors type (retail, corporate, etc) in different scheme type (equity, debt, ETF, etc.); AUM garnered through sponsor group/ non-sponsor group distributors; and State-wise/Union territory-wise contribution to AUM.
(c) This information will be disclosed on the respective AMC’s website and on AMFI website.
Disclosure of Voting Exercise
(a) AMCs will record and disclose specific rationale supporting their voting decision (for, against or abstain) with respect to each vote proposal.
(b) AMCs will publish summary of votes cast across all its investee companies and along-with break-up of for, against or abstained votes.
(c) AMCs will disclose voting exercises on their website on a quarterly basis, within 10 working days from the end of the quarter and also in their annual report.
(d) AMCs will obtain Auditor's certification on voting reports being disclosed by them which will be submitted to trustees and also disclosed in the annual report & website.
(e) Board of AMCs and Trustees will review and ensure that AMCs have voted on important proposals and the rationale recorded for vote decision is prudent and adequate.
(a) Mutual Funds will make available printed literature on mutual funds in regional languages.
(b) Mutual Funds will introduce Investor awareness campaign in regional languages both in print and electronic media.
(c) AMCs will develop a system for active support to PSU banks to distribute Mutual Fund products through them.
(d) Mutual funds will also provide an online investment facility on their websites
Tata Power is raising about Rs2,000 crore through a rights issue for paying its debts and capital expenditure. The issue is priced at Rs60 per share, including a premium of Rs59 a piece
Tata Power Co Ltd said it would raise about Rs2,000 crore through a rights issue for paying its debts and capital expenditure. The issue would open for subscription from 31st March to 15th April.
Existing Investors holding 50 shares will be eligible to buy seven shares through rights issue (Rights entitlement ratio of 7:50), the Tata group company said.
Tata Power will offer 33.22 crore shares with a face value of Rs1 each at Rs60 a share (including a premium of Rs59) to its existing investors.
“Tata Power has earmarked Rs300 crore for generation, transmission and distribution of electricity in the Mumbai license area, while Rs498.35 crore would be used for general corporate purposes,” the offer document from Tata Power said.
Tata Power will extend Rs639.51 crore from the funds raised to Coastal Gujarat Power Ltd, the operator of the 4,000 MW Mundra ultra mega power project in Gujarat, for part repayment of borrowings, according to its offer document. About Rs 533 crore from the net proceeds will be used to partly repay certain borrowings of Tata Power.
As on December 2013, Tata Power’s total long-term outstanding debt from banks and financial institutions stood at Rs9,091.77 crore. Tata Powers in its December quarter reported 16% higher standalone net profit of Rs251.13 crore from Rs216.38 crore, despite 21% fall in its revenues at Rs2,007.92 crore from Rs2,549.11 crore in as same period a year ago.
Tata Power closed Tuesday 1.2% up at Rs81.35 on BSE. While the 30-share Sensex ended flat at 22,055.