Stocks
Sensex, Nifty may give up gains: Tuesday Closing Report

The market may put on a short rally but selling pressure is likely to overpower it

 
The market closed with marginal gains amid a high degree of volatility even at the country’s headline inflation for April came in at a three-and-half year low of 4.89%. The market may put on a short rally but selling pressure is likely to overpower it. The National Stock Exchange (NSE) reported an extremely lower volume of 46.09 crore shares and advance-decline of 663:737.
 
The Indian market opened marginally higher as cautiousness prevailed ahead of the release of the headline inflation for April later in the day. Markets across Asia wee mixed in morning trade and US stocks finished flat on Monday, which also weighed on the sentiments back here.
 
The Nifty resumed trade at 5,990, up 10 points over its previous close, and the Sensex rose 24 points to open trade at 19,716. The benchmarks could not sustain their initial gains and dipped into the red for a short while. At the lows, the Nifty fell to 5,970 and the Sensex went back to 19,653.
 
Buying activity soon picked up with support from IT and oil & gas sectors. The gainers were joined by PSU and healthcare sectors, helping the indices hit their highs in noon trade. A decline in the headline inflation for April to a three-and-half year low of 4.89% also supported the gains. The Nifty touched 6,026 and the Sensex rose to 19,832 at their respective highs. 
 
India's wholesale price inflation eased for a third straight month in April to 4.89% against 5.96% in the previous month, the lowest level since last seen in November 2009.
 
However, profit taking at the highs saw the benchmarks pare their gains and slip into the red at around 1.30pm. But after a brief period of being in the negative, the indices picked up momentum once again on select buying.
 
The benchmarks were volatile, albeit in the positive terrain, in late trade. The market finished with marginal gains on support from healthcare, technology and PSU stocks.
 
The Nifty closed 15 points (0.25%) up at 5,995 and the Sensex finished the session at 19,722, a rise of 31 points (0.16%).
 
Among the broader indices, the BSE Mid-cap index gained 0.27% and the BSE Small-cap index rose 0.04%.
 
The top sectoral gainers were BSE Healthcare (up 0.67%); BSE TECk (up 0.64%); BSE PSU (up 0.48%); BSE Power (up 0.40%) and BSE Oil & Gas (up 0.33%). The main losers were BSE Consumer Durables (down 1.16%); BSE Realty (down 0.38%); BSE Auto (down 0.20%) and BSE Fast Moving Consumer Goods (down 0.09%).
 
Among the 30 stocks on the Sensex, 15 settled higher. The key gainers were Sun Pharmaceutical Industries (up 2.03%); ONGC, Bharti Airtel (up 1.78% each); GAIL India (up 1.57%) and Tata Motors (up 0.96%). The main laggards on the benchmark were Dr Reddy’s Laboratories (down 2.66%); Bajaj Auto (down 1.87%); Coal India (down 0.69%); Mahindra & Mahindra (down 0.67%) and BHEL (down 0.66%).
 
The top two A Group gainers on the BSE were—Eicher Motors (up 6.68%) and Reliance Communications (up 5.77%).
The top two A Group losers on the BSE were—Amara Raja Batteries (down 5.25%) and Muthoot Finance (down 5.13%).
 
The top two B Group gainers on the BSE were—Satra Properties India (up 20%) and Vikas Granaries (up 20%).
The top two B Group losers on the BSE were—Brescon Advisors & Holdings (down 19.98%) and Vyapar Industries (down 16.76%).
 
Of the 50 stocks on the Nifty, 33 ended in the in the green. The main gainers were Ranbaxy Laboratories (up 3.55%); Bank of Baroda (up 2.17%); Sun Pharma (up 2.02%); Power Grid Corporation (up 1.92%) and ONGC (up 1.89%). The key losers were Dr Reddy’s Laboratories (down 2.38%); Bajaj Auto (down 2.05%); HCL Technologies (down 1.92%); BHEL (down 1.05%) and Jaiprakash Associates (down 0.88%).
 
The Asian markets closed on a mixed note with the Shanghai Composite falling to a one-week low on worries that the country’s central bank would halt fresh support to the economy in its growth. On the other hand, the Seoul Composite was the best performer in the Asian pack as a stronger yen boosted the prospects for the country’s exporters.
 
The Jakarta Composite gained 0.54%; the KLSE Composite added 0.03%; the Straits Times rose 0.11%; the Seoul Composite climbed 1.03% and the Taiwan Weighted settled 0.04% higher. On the other hand, the Shanghai Composite tanked 1.11%; the Hang Seng declined 0.26% and the Nikkei lost 0.16%.
 
At the time of writing, the key European markets were down between 0.15% and 0.48% and the US stock futures were trading in the red.
 
Back home, foreign institutional investors were net buyers of shares totalling Rs244.08 crore on Monday while domestic institutional investors were net sellers of stocks amounting to Rs454.82 crore.
 
REpower Systems SE, part of wind turbine maker Suzlon group, has bagged an order worth 90 million euros (over Rs639 crore) for four wind power projects in Germany. The contract is for supplying 27 wind turbines to four projects and the turbines are scheduled to be delivered next year, Suzlon said in a statement today. The stock rose .36% to close at Rs14.05 on the NSE today.
 
Hero MotoCorp on Tuesday launched its range of two-wheelers in Guatemala City, El Salvador and Honduras, in partnership with Indy Motos Group of Guatemala which will sell the products to these markets. The range of two-wheelers being launched in these markets includes Hunk, Karizma, Glamour, HF Dawn, Splendor NXG, Super Splendor and Achiever. The stock rose 0.07% to close at Rs1,680 on the NSE.
 

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SEBI-Sahara case: Market regulator starts refunding money to investors
The money is being refunded only in those cases where SEBI has not found any multiplicity during its verification process. Refund for others will have to wait till the next direction from the Supreme Court, which is likely to hear the case on 17th July, the regulator said
 
In the high profile Sahara case involving over Rs24,000 crore raised through “various illegalities”, the Securities and Exchange Board of India (SEBI) has begun the process of refund to individual investors who have been verified by it.
 
The money is being refunded only in those cases where SEBI has not found any multiplicity during its verification process. Refund for others will have to wait till the next direction from the Supreme Court, which is likely to hear the case on 17th July.
 
The refunds are being made from Rs5,120 crore that has been deposited by the Sahara Group, which claims to have already returned close to Rs20,000 crore to the bondholders of two Sahara firms directly.
 
This claim of direct refunds, which Sahara says were made before the Supreme Court order of 31 August 2012, is yet to be verified independently, the sources said.
 
Even among the lists of investors submitted by Sahara to SEBI, after being directed by the apex court to do so, the regulator has come across numerous multiplicities and other anomalies, the sources said.
 
There are numerous instances of one investor being named at hundreds of places, while there are also cases of multiple addresses for one single investor and hundreds of investors sharing the same address, the sources said.
 
However, the largest number of anomalies suspected by SEBI involves untraceable addresses and other investor details.
 
Sources said the refunds are being made to the genuine investors whose credentials have been verified, although the number of such cases is so far very small when compared to initial claims of about 3 crore bondholders from whom two Sahara firms had raised over Rs24,000 crore.

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Air India to resume Dreamliner flights from Wednesday

 

The B-787s have remained grounded since 17th January after a fire in the lithium-ion batteries of a parked plane in Boston and a case of forced landing of another B-787 for the same reason in Japan
 
Government-owned national carrier Air India is expected to resume domestic operations of its grounded Dreamliners planes from Wednesday and their global flights from 22nd May with the government today saying the airline would cut costs to the tune of Rs2,000 crore in the current financial year. 
 
While monetisation of its assets in Delhi, Mumbai, Chennai and Coimbatore alone would generate additional funds Rs1,000 crore, oil companies are expected to provide concessions of Rs500 crore to Air India. 
 
The airline would generate additional revenue of over Rs500 crore through slashing of staff costs, savings from interest on loans and working capital and booking agency commissions. 
 
"The first commercial flight of the Dreamliner will start tomorrow from Delhi to Kolkata. Out of six of these Boeing 787 planes, two have been already modified following the battery fire incidents," civil aviation minister Ajit Singh informed the media.  
He said the first international flight of the Dreamliner would be launched from 22nd May. The national carrier would begin full-scale global operations with these planes from Delhi to Birmingham and Sydney-Melbourne from August, Rome and Milan from October and Moscow from early next year, the minister said. 
 
The remaining four of the total six Dreamliners with Air India now, would become operational by this month end, Singh said, adding another eight of these aircraft would be delivered by Boeing by December, taking the total to 14. The airline has ordered a total of 27 Dreamliners. 
 
The B-787s have remained grounded since 17th January after a fire in the lithium-ion batteries of a parked plane in Boston and a case of forced landing of another B-787 for the same reason in Japan. 
 
The minister refused to divulge the amount of compensation the US aircraft manufacturer would give to Air India but said the airline has set up an internal committee to talk to Boeing on the issue.

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COMMENTS

Chetan Surpam

4 years ago

"The first commercial flight of the Dreamliner will start tomorrow from Delhi to Kolkata. Out of six of these Boeing 787 planes, two have been already modified following the battery fire incidents," civil aviation minister Ajit Singh informed the media.
He said the first international flight of the Dreamliner would be launched from 22nd May. The national carrier would begin full-scale global operations with these planes from Delhi to Birmingham and Sydney-Melbourne from August, Rome and Milan from October and Moscow from early next year, the minister said.

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