A short downmove in Nifty may be in the offing
Ahead of the April futures and option expiry, the S&P BSE Sensex and NSE Nifty moved in a narrow range. The effort to stay in positive could be sustained only till 10.30 in the morning after which the benchmarks were pulled lower.
The 30-share Sensex opened higher at 25,421 and moved higher up to 25,428 while the 50-share Nifty managed to open a few points higher at 7,589 and hit a high almost at the same level. The indices were pulled lower to the level of 25,274 and 7,557. Sensex closed at 25,314 (down 55 points or 0.22%) while Nifty closed at 7,569 (down 11 points or 0.14%). The NSE recorded a volume of 98.21 crore shares. India VIX fell 4.56% to close at 18.3125.
Among the other indices on the NSE, the top five gainers were CPSE (1.15%), Realty (0.99%), Auto (0.96%), Consumption (0.85%) and MNC (0.71%) while the top five losers were Bank Nifty (0.47%), Energy (0.41%), Infra (0.37%), Finance (0.26%) and FMCG (0.25%).
Of the 50 stocks on the Nifty, 24 ended in the green. The top five gainers were Bajaj Auto (2.78%), Maruti (2.05%), Lupin (1.76%), Hindustan Unilever (1.63%) and Hero MotoCorp (1.63%). The top five losers were ITC (1.53%), IDFC (1.50%), ICICI Bank (1.47%), ONGC (1.41%) and DLF (1.41%).
Of the 1,584 companies on the NSE, 819 companies closed in the green, 704 companies closed in the red while 61 companies closed flat.
Market now looks ahead for the budget session which is to begin from 7 July 2014.
Reserve Bank of India on Tuesday allowed banks to engage non-deposit-taking non-banking finance companies as banking correspondents for financial inclusion.
Maruti Suzuki (2.56%), among the top two gainers in the Sensex 30 pack, plans to launch 6 new cars in the next few months, of which four will be priced in the Rs 6-14 lakh range.
After being the top loser in the Sensex 30 stock on Monday, today again ITC came in among the top two losers (1.36%). On Monday it was reported that Union health minister Harsh Vardhan has suggested increase in excise duty on cigarettes in upcoming final Union Budget for 2014-15 to deter people from smoking.
Engineers India (6.90%), top gainer in ‘A’ group on the BSE, has been given a Navratna status.
Idea Cellular (2.52%), among the top three loser in the ‘A’ group on the BSE, introduced 'No Bill Shock Combo Plan' for its postpaid subscribers across four service areas, allowing users to cap usage-linked expenses. In this plan data speed will be automatically downgraded once the predefined usage is exhausted.
US indices closed Tuesday in the negative. Data showed purchases of new homes in the US rose in May by the most in 22 years, indicating the industry is rebounding from a winter-induced lull at the start of the year. The Conference Board's index of US consumer confidence increased to 85.2 in June from 82.2 a month earlier, the New York-based private research group said yesterday.
All the Asian indices closed in the negative. Nikkei 225 (0.71%) was the top loser.
European indices were trading in the red while US Futures were trading flat.
Research analysts must have a professional qualification, a post-graduate degree or a post-graduate diploma in finance, accountancy, capital market, financial services or markets besides certification from NISM, says SEBI
As per the new norms issued by market regulator Securities and Exchange Board of India (SEBI) research analysts would be required to have a professional degree as also an National Institute of Securities Markets (NISM) or equivalent certification to ensure that investors get the right financial advice.
The NISM has been established by the SEBI to conduct academic programmes and certification examinations for financial education.
The new regulations would require that any individual seeking registration as a ‘Research Analyst, or those engaged in preparation or publication of research analysis and reports have certain minimum qualifications.
These would include a professional qualification, a post-graduate degree or a post-graduate diploma in finance, accountancy, business management, commerce, economics, capital market, financial services or markets.
Such a degree would need to be from a university recognised by the University Grants Commission (UGC) or by an equivalent establishment.
Otherwise, the research analyst can have a professional degree or post-graduate diploma from an institution accredited by All Indian Council for Technical Education, National Assessment and Accreditation Council or National Board of Accreditation, or any other equivalent body.
Those having a graduate degree would need experience of at least five years in activities relating to financial products, markets, securities, funds, asset or portfolio management.
In addition to the professional degree, the research analyst would also need to have, at all times, a NISM Certification Examination for research analysts as specified by SEBI, or any other certification recognised by the regulator board from time to time.
In case of research analysts or research entities already engaged in issuance of research reports, the new regulations require that such individuals obtain a certification within two years from the date of commencement of these regulations.
The new norms have been approved by the SEBI board and are in the process of being notified.
SEBI last week cleared detailed norms for ‘research analysts’ to safeguard investors from any manipulation by such entities and to bring in greater transparency in their activities.
“In India, research analysts were not being regulated. Now we have provided that all people doing research reports will be regulated, there will be a requirement, registration with SEBI and post-registration they will have certain disclosure requirements,” SEBI Chairman UK Sinha had said after a SEBI board meeting on 19th June.
According to media reports, a note is being sent to the Oil Minister Dharmendra Pradhan, for disallowing cost recovery of $578 million in 2013-14, and a notice will be sent to RIL once he approves it
The Indian government is planning to impose an additional penalty of $578 million on Reliance Industries Ltd (RIL) for producing less-than-targeted natural gas from its eastern offshore KG-D6 block, say media reports.
The penalty in the form of disallowing costs incurred on the field will be for missing the target in 2013-14, a government source was quoted as saying in media reports. With this, the total costs disallowed will increase to $2.375 billion.
Earlier, the union government had issued a notice to RIL, disallowing a total of $1.797 billion in costs for falling short of production during 2010-11 ($457 million), 2011-12 ($548 million) and 2012-13 ($792 million).
A note is being sent to the Oil Minister Dharmendra Pradhan for disallowing cost recovery of $578 million in 2013-14, and a notice will be sent to RIL once he approves it, the source was quoted as saying.
Production from the main gas fields in the KG-D6 block has dropped to about one tenth of the planned 80 million standard cubic meters per day. The fall in output meant that facilities created after huge investments went un-utilised.
The production sharing contract allows RIL and its partners, BP Plc and Niko Resources, to deduct all capital and operating expenses from the sale of gas before sharing profit with the government.
The creation of excess or un-utilised infrastructure impacts the government's profit share and this is sought to be corrected by disallowing part of the expenses incurred.
According to reports, the ministry believes that $115 million in additional profit share would have accrued to the government from disallowing the cost in 2013-14.
To recover this additional profit share, it has proposed that state-run companies deduct $115 million from payments due to RIL for crude oil and gas bought from KG-D6 block, the report added.
Once Pradhan approves, the ministry will instruct Chennai Petroleum and Hindustan Petroleum, which buy crude oil from the KG-D6 block, and GAIL India, which purchases KG-D6 gas, to remit $115 million deducted from payments to RIL and deposit the amount in a government account, the report said.
The move comes after RIL did not agree to deduct the disallowed costs from total expenses incurred, before calculating the government's share of profit petroleum.
The government's profit share would rise by $195 million if all of the $2.375 billion of disallowed costs is deducted from expenses incurred.