Sensex, Nifty may record further gains – Wednesday closing report

The market has moved to uncharted territory. For the uptrend to reverse, the Nifty  has to close below any previous day’s low


In line with most of the Asian indices, the benchmarks in India also rose further on Wednesday. With the seventh consecutive session of positive closing, both the S&P BSE Sensex and CNX Nifty ended the day at their all-time highs. Positive data from the US also helped the upward momentum to continue.

Sensex and Nifty opened in the positive at 26,130 and 7,795, respectively. Sensex hit its high at 26,189 while Nifty hit its all-time high at 7,809. In today's volatile session, both Sensex and Nifty gave up all the intraday gain when it hit its low for the day at 26,000 and 7,753, respectively. Howeer, both made a smart recovery and closed at 26,147 (up 122 points or 0.47%) and at 7,796 (up 28 points or 0.36%). The NSE recorded a volume of 86.38 crore shares. India VIX rose 0.34% to close at 14.6900.


Among the other indices on the NSE, the top five gainers were IT (2.18%), PSU Bank (0.68%), Service (0.67%), CNX 100 (0.25%) and Bank Nifty (0.23%) while the top five losers were Media (1.11%), Smallcap (0.65%), Commodities (0.54%), MNC (0.53%) and CPSE (0.49%).

Of the 50 stocks on the Nifty, 22 ended in the green. The top five gainers were BPCL (3.95%), Infosys (3.45%), Bank of Baroda (2.95%), Hindalco (2.66%) and Wipro (2.10%). The top five losers were Ambuja Cements (3.18%), UltraTech Cement (2.80%), ACC (2.34%), IDFC (2.14%) and Grasim (1.77%).

Of the 1,610 companies on the NSE, 579 companies closed in the green, 957 companies closed in the red while 74 companies closed flat.

The Reserve Bank of India (RBI) on Tuesday said that it is expected that about 4-6 banks may be designated as domestic systemically important banks (D-SIBs) and that the RBI will disclose the names of the banks classified as D-SIBs in the month of August every year starting from 2015.

Infosys has secured a multi-year deal from automaker maker Daimler AG for the management of infrastructure services and data centres. Infosys would provide management of infrastructure services and data centres, e-collaboration and middleware services as well as overseeing database operations. Infosys (3.46%) was the top gainer in Sensex 30 pack.

The Appellate Tribunal for Electricity (APTEL) has allowed Tata Power to charge higher rates from state utilities since March this year, on account of a rise in the cost of imported fuel. However the company is disallowed from collecting arrears before March this year. Tata Power (1.25%) was among the top two losers in the Sensex 30 stock.
MCX-SX has written to market regulator SEBI saying that it wants to end its business ties with Financial Technologies. Financial Technologies (9.99%) was again today the top gainer in the ‘A’ group on the BSE.

MRF posted a net profit of Rs230.22 crore for the quarter ended June 2014 as compared to the net profit of Rs227.28 crore for the quarter ended June 2013. While its total revenue increased to Rs 3,336.98 crore from Rs3,051.46 crore for the relevant period. The company declared an interim dividend of Rs3 per share (FV Rs10 per share) for the year ending 30 September 2014. MRF (6.03%) was among the top two gainers in the ‘A’ group on the BSE.

According to reports, Attorney General Mukul Rohatgi has told the Central Bureau of Investigation (CBI) to file a charge-sheet against former minister for telecom, Dayanidhi Maran and his brother Kalanidhi Maran in the Aircel-Maxis deal. Dayanidhi Maran is accused of coercing C Sivasankaran to sell his entire stake in Aircel, a mobile service provider, to Malaysia-based Maxis group. Kalanithi Maran held 75% stake in Sun TV Network as of 30 June 2014. Sun TV (7.07%) was the top loser in the ‘A’ group on the BSE.

US indices closed Tuesday in the green zone. The US consumer price index increased 0.3% in June 2014 after a 0.4% gain in May 2014, figures from the Labour Department showed. Purchases of existing houses advanced 2.6% to a 5.04 million annual rate in June 2014, the National Association of Realtors reported.

Except for Nikkei 225 (0.10%) and Seoul Composite (0.03%) all the other Asian indices which were trading today closed in the green. Hang Seng (0.80%) was the top gainer.


Gadkari says no road project without 80% land acquisition

The NDA government has decided not float tenders for highways projects without 80% land acquisition, the minister said

Nitin Gadkari, minister for road transport and highways has said that no highway projects would be bid out without 80% land acquisition so as to fast-track infrastructure development and the government would create a shelf of 300 projects with all clearances.

Speaking at a public-private-partnership (PPP) summit organised by FICCI, the minister said, "We have taken a decision that without 80% land acquisition, we will not float tenders for highways projects."

Blaming the previous United Progressive Alliance (UPA) regime for award of projects 'without acquiring even 10% of the required land' and causing hardships for road sector, Gadkari said that "a shelf of 300 projects is being created with all regulatory clearances to be bid out in next five to 10 years".

Identifying delays in disposing of the files as another major bottleneck for the sector's tardy growth, the minister said he has urged the Prime Minister Narendra Modi to direct all officials to fast-track decisions.

"Time is the most important concept in infrastructure and business and delays cost the country to the tune of Rs15 crore a day. Files are kept pending for three months to one-and-half-year. I have asked Highways officials to fast-track decision and requested the Prime Minister to issue directions to all officials," he said.

Delays in decision-making have resulted in cost-overruns and projects are pending for environment clearance, land acquisition, transfer of defence land and railway clearances for rail over bridge for up to three years, he said.

A large number of projects were stuck due to litigation as well and poor condition of roads was leading to road accident deaths of 1.31 lakh per annum, the minister added.

Also, interference in concession agreements by various institutions like Planning Commission, Finance Ministry and Highways Ministry has caused much delays with the result that bidders are shying away from projects, he said.

"We are introducing a new culture in the Road Ministry to reward those excelling and punish those with poor or defective work besides creation of a Bank of Ideas and Innovation by August 9 to fast-track projects," Gadkari added.

Enunciating the steps to fast-track work, he said he would be holding a meeting every month as per Prime Minister's direction to see that clearances are there for projects.

"About 300 projects for rail over bridges (RoB) were pending in the Ministry for lack of clearances from Railways," he said, adding that such clearances file has to move from 16 tables.

Besides, he said that low cost interest was needed for infrastructure projects and appreciated the measures by Finance Minister Arun Jaitley to boost the sector.


RBI examining option for exit by businesses facing bankruptcy

While there is a talk of providing legal provision in the Companies Act, the RBI would like to work on examining regulatory framework for voluntary withdrawal by the entrepreneur, says B Mahapatra


In the absence of a good bankruptcy code in India, Reserve Bank of India (RBI) is working on a system to enable entrepreneurs seeking to exit insolvent business, a senior official from the central bank said.

Speaking at a seminar "Managing Stressed Assets" organised by Assocham, RBI's executive director B Mahapatra, said, "We have a tendency in India that we do not like failures. We think everybody should pass and have distinction. We do not have a culture to accept failures. How to create that? There is a thinking in Reserve Bank, we have been thinking how to create a system so that people should voluntarily withdraw from an unattractive business."

He said it is felt there has to be a good bankruptcy system in India.

Mahapatra said RBI has started working on an enabling system for banks that will help those entrepreneurs seeking an honourable exit from unattractive ventures.

He said here in India the bankruptcy has a stigma attached as, "Nobody wants to be called a bankrupt person... Indian philosophy is that we do not like failures".

Mahapatra said RBI has just begun working on such a framework to enable companies a voluntary withdrawal.

While there is a talk of providing legal provision in the Companies Act in this regard, but the RBI would like to work on examining the regulatory framework for the voluntary withdrawal by the entrepreneur, he added.

Pointing to the problem of bad loans, he said, it is a known fact that the problem of stressed asset is there. And particularly in the cases of public sector banks, the problem is more worrisome, though the private sector lender have fared much better.

"Reserve Bank has now provided a system of incentives and disincentives for following rules of the game for corporate debt restructuring (CDRs)."

The problem of stressed assets earlier was in traditional sectors such as iron and steel and fertilisers but of late it is in infrastructure, he said.


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