Sensex, Nifty may strengthen further: Tuesday Closing Report

If the Nifty manages to remain above 4,860, it may touch the level of 5,040 and then 5,100

The market pared all its gains in the late session amid volatile trade, ahead of the F&O expiry and release of the March quarter GDP data on Thursday. Yesterday we had mentioned that if the Nifty is able to sustain itself above the support of 4,860, it may touch 5,040 and then 5,100. The index almost reached the first resistance by hitting an intraday high of 5,020; however, after reaching this level the market fell and closed marginally in the positive. The benchmark should continue to make a higher high and a higher low which may help it reach the targets already mentioned by us. The National Stock Exchange (NSE) saw a volume of 51.29 crore shares.

The market witnessed a firm opening tracking the Asian markets which were in the positive in morning trade as traders resorted to value-picking after the recent decline that made stocks cheaper. The Nifty opened 19 points higher at 5005 and the Sensex resumed trade at 16,500, up 83 points over its previous close. Buying interest in early trade saw 11 of the 13 sectoral gauges trading higher.

Meanwhile, global agency Moody’s on Monday said the sliding rupee will not impact India’s sovereign ratings, but may hurt private sector companies with large overseas debts. The report further pointed out that the current rupee volatility will be “less damaging than in 1991, when low reserves and a widening current account deficit prompted India's last balance of payment crisis”.

Institutional buying enabled the indices resume their northward journey. The sentiment was also supported by a positive opening of the European markets. The benchmarks hit their intraday highs in noon trade with the Nifty touching 5,020 and the Sensex rising to 16,544.

However, profit booking at higher levels resulted in the market paring most of the gains in the late session. The indices fell to their lows at the fag end of trade with the Nifty falling to 4982 and the Sensex going back to 16,410.

The market closed flat with a positive bias ahead of the F&O expiry and release of the March quarter GDP data on Thursday.  The Nifty settled four points up at 4,990 and the Sensex gained 22 points to 16,439.

The advance-decline ratio on the NSE was 857:759.

The broader markets settled mixed today. The BSE Mid-cap index closed down 0.14% while the BSE Small-cap index gained 0.17%.

The top gainers in the sectoral space were BSE IT (up 1.19%); BSE TECk (up 0.74%); BSE Realty (up 0.62%); BSE PSU (up 0.49%) and BSE Metal (up 0.35%). The losers were BSE Fast Moving Consumer Goods (down 0.93%); BSE Consumer Durables (down 0.67%); BSE Healthcare (down 0.30%) and BSE Capital Goods (down 0.15%).

The Sensex was led by Wipro (up 2.72%); Coal India (up 2.14%); Maruti Suzuki (up 2.11%); TCS (up 1.39%) and ONGC (up 0.98%). The key losers on the index were ITC (down 1.55%); Sterlite Industries (down 1.22%); Bharti Airtel (down 0.78%); Cipla (down 0.69%) and Sun Pharma (down 0.68%).

The top five stocks on the Nifty were HCL Technologies (up 2.63%); Cairn India (up 2.27%); Wipro (up 2.16%); Coal India (up 1.92%) and Ranbaxy Laboratories (up 1.87%). The main laggards on the benchmarks were ACC (down 2.44%); BPCL (down 2.26%); IDFC (down 1.93%); SAIL (down 1.61%) and Grasim Industries (down 1.54%).

Markets in Asia closed in the positive on speculations that Chinese policymakers would decide on new measures to boost the slowing economy. A finance ministry official was quoted saying that it would allocate nearly 2 billion yuan ($317 million) annually to support purchase of energy-efficient cars.

The Shanghai Composite gained 1.20%; the Hang Seng surged 1.35%; the Jakarta Composite added 0.01%; the KLSE Composite advanced 0.67%; the Nikkei 225 climbed 0.74%; the Straits Times rose 0.52%; the KOSPI Composite gained 1.41% and the Taiwan Weighed surged 2.89%.

At the time of writing, the key European indices were mixed while the US stock futures were trading higher.

Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Monday. While foreign institutional investors pumped in Rs108.88 crore, domestic institutional investors infused Rs167.70 crore.

Infrastructure major GVK today said it has got environment clearance from the Queensland government in Australia for its $10 billion (about Rs55,000 crore) Alpha Coal and rail project in Galilee Basin. The project, expected to generate 4,000 jobs at peak, is being run by Hancock Coal in which 79% is owned by GVK and 21% by Gina Rinehart, the world's richest woman. GVK Power & Infrastructure surged 3.75% to close at Rs12.45 on the NSE.

India’s jewellery retailer Gitanjali Group is planning to invest up to $75 million (around Rs414 crore) in increasing its number of outlets in the UAE to 110 within two years. The company is also planning to expand the brand into Saudi Arabia and is looking at opportunities in Qatar, Kuwait and Bahrain. Gitanjali Gems fell 0.26% to settle at Rs302.20 on the NSE.

PBA Infrastructure has bagged order worth about Rs57.61 crore from Maharashtra Airport Development Company. The order is for construction of link taxiway (connectivity) from existing Airport to MRO area in MIHAN-SEZ at Nagpur. The stock rose 0.34% to close at Rs29.60 on the NSE

Tata Motors Q4 net profit jumps two-fold to Rs6,234 crore

Tata Motors' FY consolidated net profit rose 45.8% to Rs13,516.50 crore while its total revenues increased 35.6% to Rs1.65 lakh crore

Mumbai: Tata Motors, India's largets vehicle maker, on Tuesday reported an over two-fold jump in its consolidated net profit for the quarter ended March 2012 at Rs6,234 crore from Rs2,637.52 crore same period last year, Tata Motors said in a statement.

The consolidated net income during the fourth quarter also increased by 44.3% to Rs50,907.90 crore from Rs35,287.06 crore in the year-ago period.

For the full year to end-March, the Tata group company said its consolidated net profit rose 45.8% to Rs13,516.50 crore from Rs9,273.62 crore in the previous fiscal. Its consolidated net income in FY12 stood at Rs1.65 lakh crore compared to Rs1.22 lakh crore in FY11, up 35.6%.

The company said Tata Sons Deputy Chairman Cyrus P Mistry was inducted to the Tata Motors board as a Director.


Guarantors liable to pay if debtors default rules Supreme Court

The guarantor also cannot insist that the creditor must first exhaust all remedies against the principal debtor before recovering the debts from the surety holders, says the apex court

New Delhi: The guarantor of a loan is liable to pay it if the debtor fails to clear it, the Supreme Court has ruled, while maintaining that financial institutions too cannot act like property dealers in recovering the debts, reports PTI.

A bench of justices BS Chauhan and Dipak Misra also said the guarantor cannot insist that the creditor must first exhaust all remedies against the principal debtor before recovering the debts from the surety holders.

"There can be no dispute to the settled legal proposition that in view of the provisions of Section 128 of the Indian Contract Act, 1872, the liability of the guarantor / surety is co-extensive with that of the debtor.

"Therefore, the creditor has a right to obtain a decree against the surety and the principal debtor.

"The surety has no right to restrain execution of the decree against him until the creditor has exhausted his remedy against the principal debtor for the reason that it is the business of the surety/ guarantor to see whether the principal debtor has paid or not," said Justice Chauhan, writing the judgement for the bench.

The apex court gave the ruling on an appeal by one Ganga Kishun, who had stood as a guarantor to a bank loan, raised by one Ganga Prasad, who had died without clearing it. Ganga Kishun had come to the apex court against the Uttar Pradesh government's decision to recover the loan arrears from him after the death of principal debtor Ganga Prasad.

While dismissing Ganga Kishun's appeal, the apex court, however, faulted the government's decision to auction Ganga Kishun's entire stretch of land for Rs25,000 to recover an arrear worth Rs8,500 only and not confining the auction to only 1/3rd of the land which could have fetched the arrears.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)