Sensex, Nifty may find short-term support: Wednesday Closing Report

A close above the day's high may bring some relief in the current downtrend. Support is around 6,050 in the Nifty

The market finished marginally down on selling pressure from capital goods, realty and oil & gas sectors, making the third consecutive close in the negative. A close above the day's high may bring some relief in the current downtrend. Support is around 6,050 in the Nifty. The National Stock Exchange (NSE) reported a volume of 56.33 crore shares and advance-decline ratio of 451:956.


The market opened in the positive tracking its Asian peers which were firm in morning trade on reports that the Bank of Japan will implement a bond-buying programme to help achieve a 2% inflation target. US indices closed at new highs overnight as comments from some Federal Reserve officials allayed fears of the closure of the central bank’s bond buying initiative.


The Nifty opened 13 points higher at 6,127 and the Sensex resumed trade at 20,151, a gain of 39 points over its previous close. Buying in IT, banking and metal stocks enabled the indices hit their day’s high in the first half hour itself. The Nifty touched 6,148 and the Sensex rose to 20,220 at their respective highs.


Profit booking amid choppy trade resulted in the benchmarks paring part of their early gains and head lower in subsequent trade. The indices were range-bound in the remaining part of the morning session.


The benchmarks entered the negative zone at around 2.00pm on selling pressure from capital goods, realty and oil &gas sectors. Negative opening of the key European markets ahead of US Fed chairman Ben Bernanke’s comments on the outlook for the US economy also weighed on domestic investors. The decline led the market to its low in post-noon trade. At this point the Nifty fell to 6,074 and the Sensex retracted back to 20,001.


Meanwhile Infrastructure conglomerate Larsen & Toubro today reported 6.90% decline in standalone net profit at Rs1,787.94 crore for the fourth quarter ended March, 2013, due to a sharp rise in interest outgo. The company had reported a net profit of Rs 1,920.41 crore for the corresponding quarter of 2011-12. Net sales of the company were up nearly 10% at Rs 20,293.83 crore during the quarter vis-a-vis Rs 18,460.90 crore of the Q4 of FY12.


The market managed to pull itself from the lows and close with a minor loss, but was down for the third straight day. The Nifty fell 20 points (0.32%) to 6,095 and the Sensex closed the session at 20,062, down 49 points (0.25%).


The broader indices underperformed the Sensex today, as the BSE Mid-cap index declined 0.83% and the BSE Small-cap index dropped 0.82%.


The sectoral gainers were BSE Fast Moving Consumer Goods (up 0.83%); BSE Healthcare (up 0.41%); BSE TECk (up 0.22%) and BSE IT (up 0.13%). The main losers were BSE Capital Goods (down 3.67%); BSE Realty (down 3.47%); BSE Oil & Gas (down 0.98%); BSE Power (down 0.69%) and BSE Metal (down 0.57%).


Out of the 30 stocks on the Sensex, 14 settled higher. The key gainers were Sun Pharmaceutical Industries (up 2.90%); Bharti Airtel (up 2.25%); Dr Reddy’s Laboratories (up 1.84%); NTPC (up 1.48%) and ITC (up 1.28%). The key losers were Larsen & Toubro (down 5.57%); Tata Power (down 2.16%); Hero MotoCorp (down 2.04%); GAIL India (down 1.34%) and Sterlite Industries (down 1.25%).


The top two A Group gainers on the BSE were—Berger Paints (up .34%) and Castrol India (up 3.80%).

The top two A Group losers on the BSE were—Adani Power (down 7.01%) and DLF (down 5.63%).


The top two B Group gainers on the BSE were—Kaveri Telecom Products (up .90%) and Best & Crompton (up 19.84%).

The top two B Group losers on the BSE were—Krypton Industries (down 18.82%) and Filatex Fashions (down 18.51%).


Of the 50 stocks on the Nifty, 20 ended in the in the green. The main gainers were Sun Pharma (up 2.88%); Bharti Airtel (up 2.48%); NTPC (up 1.97%); Dr Reddy’s (up 1.68%) and ITC (up 1.62%). The major losers were L&T (down 6.05%); DLF (down 5.92%); Jaiprakash Associates (down 4.23%); BPCL (down 3.32%) and Bank of Baroda (down 3.28%).


The Asian pack, with the exception of the Shanghai Composite and the Hang Seng, closed higher after the Bank of Japan asserted that it would continue to support the economy. The Chinese bench settled lower as the government proposed a ban on coal imports while the Hong Kong market was down as a storm shut the financial markets earlier this morning.


The Jakarta Composite gained 0.37%; the KLSE Composite rose 0.38%; the Nikkei 225 surged 1.60%; the Straits Times advanced 0.30%; the Seoul Composite climbed 0.64% and the Taiwan Weighted settled 0.19% higher. Among the losers, the Shanghai Composite lost 0.12% and the Hang Seng declined 0.45%.


At the time of writing, the main European indices were down between 0.11% and 0.19% while the US stock futures were marginally higher.  


Back home, foreign institutional investors were net buyers of stocks totalling Rs679.44 crore on Monday while domestic institutional investors were net sellers of equities amounting to Rs866.69 crore.


FMCG major Emami has received two international awards for packaging from Worldstar 2013. The awards saw participation from 33 countries with 316 entries at the Auspack PLUS 2013 in Sydney, Australia. The two awards received were for Himani Navratna Cool Talc in the health and beauty Category and Menthoplus Balmin the Pharmaceutical & Medical category. The stock surged 3.33% to close at Rs753.10 on the NSE.


JSW Ispat Steel’s board on 21st May has approved the company’s plan to buy Heidelberg Cement’s grinding unit in Maharashtra, at Dolvi in Raigad district of Maharashtra, adjacent to the company’s steel plant, for an unnamed sum. The acquisition is proposed by way of a ‘slump sale’ and would be subject to obtaining necessary approvals and completion of due diligence. JSW Ispat Steel declined 2.14% to close at Rs9.15 on the NSE.


Tata Teleservices has entered into a partnership with GMR Airports to offer Wi-Fi services at Delhi and the Hyderabad international airports. The agreement would enable passengers transiting through the Indira Gandhi International Airport Terminal 3 in Delhi and Rajiv Gandhi Hyderabad International Airport, Hyderabad, access free Wi-Fi services for a specified time. The stock dropped 8.91% to close at Rs9.20 on the NSE.



Naresh Nayak

4 years ago

Pick up the last 10 years financials and apart from the usual sales and pat, watch for a rise in cash from operations in the cash flow statement, the cash return on investment of at least the past 3 years (>15% is excellent), the stock price graph, then if the management has no bad flakes on it, you could pick up a first small tranche. Their dividends if increasing are all the more better. The business model should be difficult to replicate and their strengths are difficult to replicate and they have built it over time. Other companies which have strong brands in tobacco and liquor in regional markets do really well. Then consumer goods companies like regional biscuit manufacturers with strong regional brands and expanding are good.


4 years ago

Most of the shares have gone up and it is becoming very difficult to pick up. If results are not as per expectation ( though good) are being punished badly recent examples of Infy ,Divis lab & L&T show that. Under these circumstances those shares which are giving constant returns to share holders and creating wealth and are media shy and hence are not observed by many investors are good bets.


shanti Patel

In Reply to snehakamath 4 years ago


Are working for a stockbroker?


Government reduces import tariff value of gold to $440/10g

The government has reduced the import tariff value of gold keeping in view the weak global prices of precious metals

In the wake of falling global prices of precious metals, the government today further reduced the import tariff value of gold to $440 per ten grams, while it has been kept unchanged at $761 per kg for silver imports.


Tariff value is the base price on which the customs duty is determined to prevent under-invoicing.


Till last week, the tariff value of gold was at $466 per ten grams and silver at $761 per kg.


The notification in this regard was issued by the Central Board of Excise and Customs (CBEC), an official release said.


However, the import tariff value of different varieties of vegetable oils, brass scrap and poppy seed has been kept unchanged.


Government has reduced the import tariff value of gold keeping in view the weak global prices of precious metals. In Singapore market, gold and silver prices are ruling down at below Rs1,385 per ounce and $23 per ounce, respectively.


Similarly, gold in the national capital is costing around Rs27,000 per ten grams and silver at Rs44,200 per kg.


India, the world’s largest gold consumer, is estimated to have imported 215 tonnes of yellow metal in January-March period of this year. The demand for gold is expected to be robust in the coming months, as per the World Gold Council.


Maharashtra CIC directs police to publish FIRs on its website

Uploading all FIRs, except a few, would curb illegal gratification being paid by the accused to obtain a copy of the report and soon denial of FIR would be a thing of the past in Maharashtra

In a significant order, Maharashtra state Chief Information Commission (SCIC) has directed the Director General of Police (DGP) to publish all first information reports (FIRs), except those decided by an officer of Commissioner level, on its website.


While giving this important judgement, Ratnakar Gaikwad, the SCIC, referred to orders passed by the Delhi High Court (WP (CRL) NO468/2010) and Orissa High Court. He said the DGP should ensure to upload FIRs from all police stations across Maharashtra on its website and submit a compliance report before 30 June 2013 before the Commission.


Reacting on the decision to publish FIRs, Shailesh Gandhi, former Central Information Commissioner, said, “This is indeed a very significant and important order by the SIC. We should congratulate the SIC and now take responsibility for its implementation. Activists must then monitor the websites to ensure that these orders are implemented properly and complain to the Information Commission if necessary if the order is not being implemented.”


According to Vinita Deshmukh, leading RTI activist and consulting editor of Moneylife, uploading FIRs on police websites will be a boon to the common man who is almost always harassed for a copy of the FIR, whether he makes an official request or asks for it under the RTI. She said, “It will also prevent tampering of the FIR (which is sometimes done at a later stage). Such transparency will also reduce alleged corruption and bribe that takes place for a copy of the FIR. The question though is, will the Maharashtra government, which is known for its lackadaisical attitude when it comes to governance particularly that which is citizen-friendly, will take any pains to implement it.”


RTI activist Vijay Kumbhar also expressed similar views. “The order is very good but we have to observe its implementation and implications also,” he said.


According to Rahul Deodhar, by making similar order (as per the Delhi and Orissa HCs) the SIC has done two salutary things. “First FIRs will now be available for everyone to download. Secondly, and more importantly, it has set a precedent and made it possible to apply the Delhi HC order in any state by using lower cost remedy of RTI appeal. I hope other states take this up through RTI,” he said.


Yogesh Pratap Singh (YP Singh), a former IPS officer and now a well-known advocate and activist said, there could be several issues (with the SCIC decision), which are required to be determined. He said, " is also important to upload the cases where police have not filed FIR despite the offence being cognizable in nature."

Singh said, "In many cases, police keep the FIR secret. For example, FIR is filed for developing a trap case and to collect ancillary evidence. This process may take days, or even months. This FIR is kept secret till the time the trap gets materialized. Or else, the accused would know about it and then would never take bribe and fall in trap. Similar is the position in many other decoy cases. In several cases, where extensive searches are needed at various places all over the country, the lead time could be as long as one week after search warrants are taken. These search warrants can be obtained only after the FIR is filed."

"As per law, the prerogative to get the copy of the FIR is with the complainant/ informant. Accused gets entitled only when there are issues of human rights. Often accused misuse FIR by filing anticipatory bail or by just absconding or by manipulating other evidence or by using political clout," he said.

Here is the order of SCIC related with publishing the FIR on police website...



Earlier, in its order on 6 December 2010, the Delhi HC has said that the FIRs should be uploaded online within 24 hours of its registration though it exempted the force from making public FIRs on sensitive issues.


However, whenever it does not make FIRs public, such a decision has to be taken by an officer not below the rank of Deputy Commissioner of Police and they have to inform the area magistrates, the high court had said.



The Delhi HC said, "In case a copy of the FIR is not provided on the ground of sensitive nature of the case, a person grieved by the said action, after disclosing his identity, can submit a representation with the Commissioner of Police who shall constitute a committee of three high officers and the committee shall deal with the said grievance within three days from the date of receipt of the representation and communicate it to the grieved person."



The Orissa High Court, while giving similar judgement clarified on the statutory mender inhered under Section 207 of the IPC. It said, "Once the First Information Report is forwarded by the police station to the concerned Magistrate or any Special Judge, on an application being filed for certified copy on behalf of the accused, the same shall be given by the court concerned within two working days. The aforesaid direction has nothing to do with the statutory mandate inhered under Section 207 of the Code."

Just last week, the Punjab and Haryana High Court questioning the reluctance shown by authorities directed Punjab and Haryana police to upload the FIRs on their official websites. Observing that it would curb illegal gratification being paid by the accused to obtain a copy of the FIR, the High Court has given one-month time to Punjab and Haryana to start uploading the FIRs.




Surendera Bhanot

4 years ago

Dear Sucheta, I also want to know the citation of the Judgement og P&H High Court as mentioned in the last Paragraph of the report.

Surendera Bhanot

4 years ago

Very Good Order on applicability of Delhi High Court Judgement in Maharashtra. I wish that the order of CIC Maharashtra would have available in English too.

Also there is no citation of the Orissa High Court Judgement in the News report, which may please be provided.

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