Sensex, Nifty may rally: Monday Market Report

As long as Nifty does not break 7,650, an uptrend is likely


The broad Indian market indices—S&P BSE Sensex and NSE’s CNX Nifty—recovered on Monday after a decline of over 2% in the past two trading days. In our Friday market closing report, we mentioned that Nifty and Sensex may put in a short rebound later in this week. The rebound came on Monday itself. Both the Sensex and Nifty opened and continued to trade above Friday’s low and closed near the day’s high. The 30-share Sensex closed at 25,723 (up 242 points or 0.95%) shortly after hitting an intra-day high of 25,754, while the 50-stock Nifty closed at 7,687 (up 84 points or 1.12%) minutes after touching a high of 7,695.


Trading volumes were lower on the NSE at 728.6 million shares compared to 961.2 million shares on Friday. On Friday, foreign investors registered a net outflow of over Rs1,000 crore from the Indian markets. 
Ahead of Tuesday monetary policy review by Reserve Bank on India (RBI), the Indian rupee on Monday strengthened in opening trade against the dollar after closing at 61.19 against the dollar on Friday. However, the upward momentum was short-lived. The rupee started to weaken and declined to 61.17 against the dollar after opening at 60.91 per dollar on Monday.
Infosys and other IT stocks gained on the weaker rupee. Auto stocks gained after announcing stronger sales. Except for the CNX Pharma index, all the sector indices on the Nifty, closed in the black. The CNX IT index gained 2% on Monday closely followed by the CNX Metal and the CNX Infra index which gained 1.75% and 1.61% respectively. The CNX Auto index gained 1.31%. At the bottom, on the sector indices list, was the CNX Pharma index which declined 0.21%. 
The RBI is likely to hold rates at its third bi-monthly monetary policy on Tuesday, according to a Reuters poll of 43 economists.  In its policy review statement on 3rd June, the RBI stated that “it remains committed to keeping the economy on a disinflationary course, taking CPI inflation to 8% by January 2015 and 6% by January 2016. If the economy stays on this course, further policy tightening will not be warranted. On the other hand, if disinflation, adjusting for base effects, is faster than currently anticipated, it will provide headroom for an easing of the policy stance.” 
The inflation rate measured by the CPI declined to 7.31% in June 2014 from 8.28% in May 2014, in line with the RBI’s projections.
In the bond markets, the yield on India’s 10-year benchmark bond was trading lower at 8.50%, compared with its Friday’s close of 8.53%.
Out of the 3,024 scrips traded on the BSE, as many as 1,810 stocks advanced and 1,108 declined. Of the stocks present in the Nifty, 44 closed with a gain and six stocks closed in the red. BPCL (4.70%), Hindalco (4.40%), Infosys (3.56%), NMDC (3.36%) and Jindal Steel (3.29%) were the top gainers in the Nifty. HDFC Bank (-0.30%), Cipla (-0.40%), Bharti Airtel (-0.50%), Sun Pharma (-0.88%) and HDFC (-0.91%) were among the six Nifty stocks that declined. Syndicate Bank was 6% down as its CMD was arrested for allegedly receiving a bribe of Rs 50 lakh.
The government was planning to move the controversial Insurance Laws (Amendment) Bill in Rajya Sabha on Tuesday after holding discussions with Congress and other parties on Monday. However, the Bill has been deferred for consideration in the Rajya Sabha for the time being after a meeting of the government with opposition leaders failed to break the deadlock. The bill will be referred to an all-party parliamentary panel called the select committee for review. The Bill aims at raising the ceiling on foreign direct investment (FDI) in insurance to 49% from the current 26% limit.
Most Asian and Europeans indices were trading higher on Monday. Except for Japan’s Nikkei, all other Asian indices closed higher. European stocks were trading higher despite downbeat Spanish employment data, as investors eye a policy meeting by the European Central Bank later this week. 
Disappointing US employment data on Friday eased speculation over the timing of a possible rate hike by the Federal Reserve. 
Crude oil was trading higher on Monday, after Brent and US crude futures tumbled on Friday to the lowest settlement prices in months on the back of oversupply. European markets were trading higher as were premarket futures in the US.


SEBI cracks whip against illegal, money collecting companies

In the last month alone, SEBI started action in a number of cases, where close to Rs5,000 crore has been raised through redeemable preference shares and similar instruments by money circulating companies


Market regulator Securities and Exchange Board of India (SEBI) has begun coming down hard on entities raising public money illegally through redeemable preference shares (RPS) and similar instruments, as also through their sister concerns despite being barred from the markets.


Action has been initiated in a number of such cases in the past one month, wherein close to Rs5,000 crore has been raised through issuance of such securities.


These cases are other than those involving illicit 'collective investment schemes' (CIS). SEBI has also initiated action in many CIS cases and companies that raised close to Rs4,000 crore have been asked to wind down their schemes.


In connection with violation of capital market norms in issuance of RPS and other securities, at least seven companies, as also their promoters and directors, faced strict action by the SEBI in July itself.


These companies were found to have issued debentures and preference shares without complying with the necessary regulatory laws.


Another eight companies faced a SEBI crackdown last month for violation of CIS regulations, and these include some companies based in Kolkata.


There are some sister concerns of companies that were earlier barred from raising funds as well as from launching investment schemes earlier, shows an analysis of recent orders passed by SEBI.


The regulator in one of its orders has now restrained Saiprasad Corp from raising funds from the public through its schemes ( The regulator had last year barred two group companies, Saiprasad Foods and Saiprasad Properties, from raising funds from the public.


Similarly, on 28th July, SEBI prohibited Nicer Green Housing Infrastructure Developers from raising further funds while it had issued a restraining order against another group company, Nicer Green Forest in March last year.


In one of its biggest crackdowns, SEBI has barred Pancard Club India, which had raised more than Rs3,000 crore from nearly 25 lakh investors. (


SEBI had also cracked down on firms raising money from the public by issuing securities such as redeemable preference shares and non-convertible preference shares, among others, without following public issue norms.


During last month, SEBI had prohibited Kolkata-based companies — PAFL Industries, Sunplant Forgings and Sunplant Constructions — from raising money through issue of securities till further directions.


Similar orders were also issued against Mega Mould, which had raised Rs716 crore from investors and Wasankar Wealth Management (Rs12.89 crore), during the month.


RTI Judgement Series: When different people are shown as coach, manager for same Olympic

The appellant received two sets of different names as coach and manager who had gone with the Indian wrestling team to the Beijing Olympics. This is the 206th in a series of important RTI judgements given by former Central Information Commissioner Shailesh Gandhi


The Central Information Commission (CIC), while allowing an appeal, directed the Public Information Officer (PIO) of Directorate of Education, Government of NCT of Delhi, to look at the records based on which the information was provided to the appellant and also confirm with the IOA about the names of the coach and the manager who had gone with the wrestling team to the Bejing Olympics.


While giving the judgement on 9 August 2010, under the Right to Information (RTI) Act, Shailesh Gandhi, the then Central Information Commissioner, said, "It is indeed a sad comment that trying to get information about the officials who went with the national team leads to such contradictory results."


Delhi resident, Ashok Bhasin, on 4 February 2009, sought from the PIO information regarding players, officials and coaches in international events. Here is the information the appellant had sought...


Participation of players, officials, coaches in International events, Olympic Games, Asian Games, Commonwealth Games and World Championships for the last 3 years till date.


The PIO, however, forwarded the information as received from the Sports Branch whereby Bhasin, the appellant was informed that the information sought did not pertain to the Sports Branch.


Bhasin, citing unsatisfactory information provided by the PIO, filed his first appeal. There was no mention of any order from the First Appellate Authority (FAA).


Bhasin, then approached the CIC with his second appeal. He stated that the information provided by the PIO in compliance with the FAA’s order vide letter dated 14 May 2010 was incomplete.


During the hearing, Mr Gandhi, the then CIC, observed that the appellant has sought details of the players and officials who were sent to various International sporting events. The Bench noted that Bhasin, the appellant had obtained this list for the Beijing Olympics Games 2008 and has drawn the attention of the CIC to a significant inconsistency.


The list given to Bhasin by the Directorate of Education showed that Satpal, the additional DE (Sports) and Rampal, (Wrestling Coach) had gone for the Olympic Games from Indian Olympic Association (IOA).


On the other hand, Bhasin showed a letter of 12 April 2010 from the Indian Olympic Association giving a list of athletes and officials who had gone to the Beijing Olympics. This list showed Piara Ram Sondhi as coach and Kartar Singh as manager.


"Thus information obtained from IOA and from the Directorate of Education’s Sport Branch show different coaches and managers as having gone in the wrestling team to the Beijing Olympics," Mr Gandhi noted.


Bhasin claimed that though Mr Rampal has gone as wrestling coach on behalf of Delhi Government, the entire credit and rewards as coach for the Bronze Medal won by Sushil Kumar was given to Mr Satpal.


While allowing the appeal, Mr Gandhi, directed the PIO to confirm with the records and also get confirmation from the IOA and inform the appellant about the names of the manager and the coach of the wrestling team who went to the Beijing Olympics to the appellant before 10 September 2010.




Decision No. CIC/SG/A/2010/001816/8875


Appeal No. CIC/SG/A/2010/001816



Appellant                                                        : Ashok Bhasin

                                                                             The Delhi Sportsmen Association,

                                                                             1618, Chandrawal Road,



Respondent                                                    : Anjum Masood

                                                                            Public Information Officer & Additional Director

                                                                            Directorate of Education,

                                                                            Government of N.C.T. of Delhi,

                                                                            RTI Cell, Room No. 220,

                                                                            Old Secretariat, Delhi-110054


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