Stocks
Sensex, Nifty may struggle to edge higher: Wednesday Closing Report

As mentioned yesterday, the Nifty went higher but ended flat; a lower high and a lower low may signal a decline again

 
The market closed flat, after two days of gains, on selling in oil & gas, IT and technology stocks. From here we may see the upmove continuing up to the level of 5750 on the Nifty, however, a lower high and a lower low may be a signal of pull down again. The National Stock Exchange (NSE) recorded at turnover of 68.86 crore shares and an equated advance-decline ratio of 658:656.
 
The market opened in the green on optimism from Reliance Industries and HCL Technologies whose quarterly numbers surpassed market expectations and positive global cues. Markets in Asia were trading higher tracking the US markets, which closed firm on news that US housing starts rose 7% last month to an annual rate of 1.04 million units, the highest in nearly five years.
 
The Nifty opened 20 points higher at 5,709 and the Sensex started the day at 18,773, up 28 points over its previous close. Buying in IT, capital goods, banking and auto stocks pushed the benchmarks higher in early trade. But profit booking amid a fair degree of volatility saw the market paring its gains and entering into the negative territory.
 
However, buying soon resumed, sending the indices higher once again. The market hit its intraday high in noon trade. The Nifty rose to 5,732 and the Sensex climbed to 18,870 at their respective highs.
 
The negative opening of the key European markets was a dampener, but select buying activity was a booster once again. The market hovered on both sides of its previous closing levels till the end of the trading session and settled flat.
 
The Nifty closed unchanged with a negative bias at 5,689 and the Sensex fell 14 points (0.07%) to settle at 18,731.
 
The broader markets outperformed the Sensex today, as the BSE Mid-cap index rose 0.18% and the BSE Small-cap index gained 0.30%.
 
The top sectoral gainers were BSE Metal (up 1.27%); BSE Fast Moving Consumer Goods (up 1.25%); BSE Auto (up 1.16%); BSE Healthcare (up 1.09%) and BSE Bankex (up 0.93%). The main losers were BSE Oil & Gas (down2.12%); BSE IT (down 1.14%); BSE TECk (down 0.775); BSE Power (down 0.17%) and BSE Capital Goods (down 0.03%).
 
Seventeen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Sterlite Industries (up 4.05%); Mahindra & Mahindra (up 3.91%); Sun Pharmaceutical Industries (up 3.01%); State Bank of India (up 2.87%) and ICICI Bank (up 1.70%). The major losers were Reliance Industries (down 3.78%); Wipro (down 1.77%); TCS (down 1.73%); HDFC (down 1.57%) and Tata Power (down 1.56%).
 
The top two A Group gainers on the BSE were—SAIL (up 6.33%) and United Spirits (up 6.07%).
The top two A Group losers on the BSE were—Future Retail (down 9.23%) and McLeod Russel (down 7.37%).
 
The top two B Group gainers on the BSE were—Shimoga Technologies (up 20%) and Anjani Portland Cement (up 20%).
The top two B Group losers on the BSE were—Net 4 India (down 19.97%) and Taksheel Solutions (down 19.92%).
 
Of the 50 stocks on the Nifty, 27 ended in the green. The key gainers were Sesa Goa (up 4.43%); Ambuja Cement (up 4.07%); M&M (up 3.75%); Sun Pharma (up 3.10%) and Lupin (up 3.09%). The main losers were RIL (down 3.34%); Reliance Infrastructure (down 2.49%); ONGC (down 1.78%); Tata Power (down 1.77%) and TCS (down 1.57%).
 
Markets across Asia, barring the Shanghai Composite and the Seoul Composite, closed higher on better-than-expected economic indicators from the US and reports that the International Monetary Fund has raised its forecast for Japanese growth. However, concerns about local government debt led the Chinese market lower.
 
The Hang Seng gained 0.24%; the Jakarta Composite climbed 0.72%; the KLSE Composite advanced 0.55%; the Nikkei 225 surged 1.265; the Straits Times rose 0.15% and the Taiwan Weighted settled 0.11% higher. On the other hand, the Shanghai Composite declined 0.69% and the Seoul Composite lost 0.05%.
 
At the time of writing, European markets were down between 0.53% and 1.33% on pressure from raw material producers as industrial metals decline. At the same time, US stock futures were in the negative, indicating a lower opening for US stocks later in the day. 
 
Back home, foreign institutional investors were net buyers of shares totalling Rs591.76 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of stocks aggregating Rs04.89 crore.
 
Hyderabad-based bio-pharma major Suven Life Sciences has secured product patents for four of its new chemical entities (NCEs) in China, Mexico and New Zealand. The patents are valid through 2028. The NCEs are useful in treatment of disorders associated with neurodegenerative diseases like Alzheimer's, attention deficient hyperactivity disorder, Huntington's, Parkinson and schizophrenia. The stock rose 0.54% to close at Rs27.95 on the NSE.
 
The country’s third largest two-wheeler maker Bajaj Auto today said it has raised the prices of its entire range of motorcycles by up to Rs500 due to rise in logistics and other expenditures. The stock gained 0.89% to close at Rs1,786.40 on the NSE.
 
Tata Teleservices said on Wednesday that it will surrender telecom spectrum beyond 2.5 mega-hertz in all circles barring Delhi and Mumbai in ‘protest’ against government move to charge one-time fee for airwaves beyond this threshold. The company will retain 3.75 MHz of spectrum in Delhi and Mumbai for which it will pay a one-time fee to the government. Tata Teleservices advanced 0.60% to settle at Rs8.35 on the NSE.
 

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CA PRADEEP AGARWAL

4 years ago

SPECULATOR DRIVEN, advise to keep away

Supreme Court stays its order on appointment of Information Commissioners

While staying its own judgment in the appointments of information commissioners, the apex court directed that all vacancies to be immediately filled up in all the information commissions in accordance with the RTI Act

The Supreme Court has granted a stay on its own order asking the Information Commissions to work in benches of two members with one of the members having a judicial background. The apex court has also directed all vacancies to be immediately filled up in all the information commissions in accordance with the Right to Information (RTI) Act.

 

According to RTI activists, this judgement would bring some relief to the operation of the RTI Act. They expect the Supreme Court should stay these parts finally and agree to spell out a transparent process for selection of Information Commissioners.

 

In its order issued on Tuesday, the Supreme Court said, “We make it clear that subject to orders that may be finally passed after hearing the review petitions, the competent authority will continue to fill up the vacant posts of Information Commissioners in accordance with the Act and in accordance with the judgment in WP (C) No210 of 2012 except sub-paras 108.8 and 108.9 which we have stayed. This is to ensure that functioning of the Information Commissioners in accordance with the Act and the judgment is not affected during the pendency of the review petitions.”

 

Earlier, the Supreme Court entertained petitioner Namit Sharma’s stand against the Government of India for the need of Chief Information Commissioners to have judicial background, which would require the RTI Act be amended. The Supreme Court, in its controversial judgment on 13 September 2012, stated that, “Information Commissions at respective levels shall henceforth work in benches of two members each. One of them being a ‘judicial member’, while the other an ‘expert member’.”

 

The Government of India filed for a review of this judgement, since it was also perceived as encroaching on the domain of Parliament. Two interventions were filed by civil society. Aruna Roy, member of the National Advisory Committee (NAC) and Shailesh Gandhi, former Central Information Commissioner, represented by Prashant Bhushan, filed one and another was filed by CHRI, which does a lot of work in RTI.

 

This was heard by the Supreme Court over five days for about seven hours. On 10 December 2012, the judgement was reserved. However, on 20 December one of the judges who had heard the original petition and the review retired. The matter was therefore in a limbo.

 

Then Ms Roy and Mr Gandhi filed for a stay of the judgement pointing out that the judgement was causing difficulties in the functioning of RTI. While they agreed with the court about the need for a transparent process for selecting Information Commissioners and suggested a method, they pointed out the requirement of two-person benches and retired judges being appointed had caused a stoppage in the work of the Information Commissions in Rajasthan, Madhya Pradesh, Goa, Jharkhand and Manipur. (Noted RTI activists Shailesh Gandhi and Aruna Roy file Intervention Petition in the Supreme Court)

 

They also pointed out to the apex court that due to the uncertainty caused by the absence of a judgement in the review, in many states Information Commissioners were not being appointed.

 

The Supreme Court appreciated the issues and on 16 April 2013 ordered a stay of the parts, which were impeding the working of the Information Commissions. The court stayed the judgement partially and ruled as follows:

 

We have heard learned counsel for the parties and we are not inclined to stay the operation of the entire judgment in Namit Sharma Vs Union of India but we direct that the following directions in sub-paras 108.8 and 108.9 quoted here-in-below shall remain stayed during the pendency of the Review Petition (C) No. 2309 of 2012.

 

108.8 The Information Commissions at the respective levels shall henceforth work in Benches of two members each.

One of them being a ‘judicial member’, while the other an ‘expert member’. The judicial member should be a person possessing a degree in law, having judicially trained mind and experience in performing judicial functions. A law officer or a lawyer may also be eligible provided he is a person who has practiced law at least for a period of twenty years as on the date of the advertisement. Such lawyer should also have experience in social work. We are of the considered view that the competent authority should prefer person who is or has been a judge of the high court for appointment as Information Commissioners. Chief Information Commissioner at the Centre or state level shall only be a person who is or has been a chief justice of the high court or a judge of the Supreme Court of India.

 

108.9 The appointment of the judicial members to any of these posts shall be made ‘in consultation’ with the Chief Justice of India and chief justices of the high courts of the respective states, as the case may be”.

 

We further direct that wherever Chief Information Commissioner is of the opinion that intricate questions of law will have to be decided in a matter coming before the Information Commissioners, he will ensure that the matter is heard by a bench of which at least one member has knowledge and experience in the field of Law.

 

We make it clear that subject to orders that may be finally passed after hearing the review petitions, the competent authority will continue to fill up the vacant posts of Information Commissioners in accordance with the Act and in accordance with the judgment in W.P.(C) No. 210 of 2012 except sub-paras 108.8 and 108.9 which we have stayed. This is to ensure that functioning of the Information Commissioners in accordance with the Act and the judgment is not affected during the pendency of the review petitions.

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Indian market trends

The Sensex and the Nifty fell 2% each during the fortnight. ML Large-cap Index and ML...

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