Sensex, Nifty move higher – Tuesday closing report

As long as Nifty manages to stay above 7,515 the trend is expected to remain upwards

We mentioned on Monday, that Nifty may not decline much from current levels. On Tuesday the Indian market recovered losses made in the past three days, breaking four days of negative moves. The benchmarks began with an upward move and continued to rise higher for almost the entire session. Towards the end of the session, it fell suddenly but strong buying reinforced the index immediately.

The level at which the indices opened Tuesday was the same as the day’s low. The S&P BSE Sensex opened at 25,116 while the NSE Nifty opened at 7,515. Sensex hit a high of 25,415 and closed at 25,369 (up 338 points or 1.35%), while the Nifty hit a high at 7,593 and closed at 7,580 (up 87 points or 1.16%). The NSE recorded a volume of 111.11 crore shares. India VIX rose 1.18% to close at 19.1875.
Except for Media (0.43%) and Pharma (0.29%) all the other indices on the NSE closed in the positive. The top five gainers were Realty (3.05%), PSU Banks (2.41%), Nifty Midcap 50 (2.32%), CPSE (2.28%) and PSE (2.22%).

Of the 50 stocks on the Nifty, 39 ended in the green. The top five gainers were GAIL (4.75%), BPCL (4.70%), DLF (4.70%), Bank of Baroda (3.22%) and NMDC (3.20%). The top five losers were Kotak Mahindra Bank (1.74%), Sun Pharma (1.14%), Infosys (0.82%), UltraTech Cement (0.67%) and Tech Mahindra (0.51%).

Of the 1,571 companies on the NSE, 1,107 companies closed in the green, 413 companies closed in the negative while 51 companies closed flat.

National Buildings Construction Corp (NBCC) hit its 52-week high, at Rs 332.00, on the BSE today after the company said it has been granted "Navratna Status" by the Department of Public Enterprises. NBCC rose 4.41% to close at Rs 318.45 on the BSE.

There are reports that the government may soon finalise a hike in natural gas prices and that the price hike will be lower than what was suggested according to the formula adopted by the previous UPA government, which recommended doubling the price. The discussions between the Oil Ministry and Prime Minister's Office over the weekend suggest that gas prices may be jacked up from $4.2 a unit to $5.5-6.8 per unit, reports said. This increase will be almost $2 less than the $8.4 per unit price that was expected on the basis of the formula adopted by the UPA government. Gas utility stocks like the Gujarat State Petronet (7.18%) and Petronet LNG (6.58%) were among the top five gainers in the ‘A’ group of the BSE, while GAIL (4.56%) was the top gainer among the Sensex 30 stocks.

Infosys' newly appointed chief executive Vishal Sikka may set up a corporate venture arm, which will tap into new ideas that can be used by the parent company to bring in more innovation into its work. Infosys (0.64%) was the top two losers among the Sensex 30 stocks.

Financial Technologies India Limited's (FTIL) stake in Multi Commodity Exchange will soon be sold by MCX by an offer for sale. MCX (3.07%) was the top loser in the ‘A’ group on the BSE.

US indices closed Monday flat. Data on Monday showed US sales of existing homes climbed 4.9% to a 4.89 million annualized rate in May, the most since October. A separate report from Markit Economics showed that a measure of US manufacturing growth rose to 57.5 in June from 56.4 in May.

Among the Asian indices, except for NZSE 50 (0.10%), all the other Asian indices closed in the positive. Seoul Composite (0.98%) was the top gainer.

European indices were showing a mixed performance, while US Futures were trading lower.


RBI fixes timelines for regulatory approvals, delivery of services

RBI said an applicant for private bank licence should be given in-principle approval within 90 days after receipt of report from the independent external advisory committee

Moving to a time-defined process, the Reserve Bank of India (RBI) has fixed schedules within its departments for various regulatory approvals, including grant of private bank licences, and also released a citizens' charter for its various services like clearing of transactions.

The release of 'Timelines for Regulatory Approvals'  and 'Citizens' Charter'  for delivery of services on RBI's website is a part of implementation of non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC), the central bank said in a notification.

"These timelines are indicative. If departments are likely to exceed the timeline, they will revert to the applicant," it said.

In case an applicant does not get a response within the indicated timeline, they can approach the head of the department who will respond with a status update of the application, the reason for delay, request for additional information and the likely time required for disposal of the application, it added.

As per the citizens' charter for RBI's departments, which have public interface, deposit accounts department should issue a cheque book within 20 minutes and a demand draft should be issued in an hour, among other provisions. Refinance facility and disbursement of loans should take place on the same day of application, while clearing should be completed by three days.

With regards to timelines for regulatory approvals, the RBI said, an applicant for a private bank licence should be given in-principle approval within 90 days after the receipt of a report from the independent external advisory committee.

Sr. No.

Description of Regulatory Approval

Time required


Private Bank Licence- In principle approval

90 days@


Approval to banks for acquisition/transfer of shares of five per cent or more of paid up equity share capital of the bank

90 days


Approval to banks for holding non-banking assets beyond 7 and up to 12 years, in terms of Section 9 of Banking Regulation Act, 1949

15 days


‘In principle’ approval to banks for IPO, preferential issues of capital and qualified institutional placements

30 days


Approval to banks for redemption of subordinated debt

15 days


Approval to banks for establishing a subsidiary/joint venture/associate/making strategic investments in financial services companies

45 days


Approval to banks for offering activities such as investment advisory services, portfolio management services or venturing into stock broking, mutual funds, venture capital funds, insurance or pension management departmentally

45 days


Permission to banks for expanding the scope of para-banking activities of the bank/it’s subsidiary

45 days


Permission to banks to retain investments in non-financial services companies beyond the prescribed prudential limits

45 days


Approval to foreign banks having their business in India for substitution of Government / approved Securities held under Section 11(2)(b) of the Banking Regulation Act, 1949

5 days


Approval to foreign banks having their business in India for deposit/withdrawal of Government / approved Securities held under Section 11(2)(b) of the Banking Regulation Act, 1949

5 days


Appointment / re-appointment of whole time directors (MD & CEO / EDs/ Jt. MDs ) and Part-time Chairmen (non-whole time directors) in Private Sector Banks, including LABs

90 days


Appointment / re-appointment of CEOs of Foreign Banks operating in India

90 days


Remuneration Bonus and Employee Stock Option(ESOP) of whole time directors (MD & CEO / EDs/ Jt. MDs ) and Part-time Chairmen (non-whole time directors) of Private Sector Banks, including LABs

60 days


Remuneration, Bonus and Employee Stock Option of CEOs of Foreign Banks operating in India

60 days


Opening of branches under Annual Branch Expansion Plan (ABEP) in respect of banks for which the general permission granted to open the branches in Tier 1 centres in terms of Circular DBOD.BAPD. Nos. 54 & 60/ 22.01.001/ 2013- 14 dated September 19, and October 21, 2013 has been withdrawn

30 days


Shifting of sole rural branches of banks outside the centre / village

15 days


Shifting of rural branches of banks outside the block

15 days


Part- shifting of a branch of bank

15 days


Conversion of a rural branch of bank into satellite office

15 days


Merger of Sole Rural / Semi Urban Branch of bank

15 days


Closure of Rural Branches of banks

15 days


Opening of branches under Annual Branch Expansion Plan (ABEP) of Local Area Banks

30 days


Advances to banks’ Directors

90 days


Staff Incentive Schemes by banks for deposit mobilization

90 days


Authorisation for import of gold/silver by banks

60 days

@ The timeline for issue of in-principle approval for private sector bank

licences commences from receipt of report from the

Independent External Advisory Committee.

Similarly, timelines have been fixed for in-principle approval to banks for initial public offerings (IPOs), preferential issues of capital and qualified institutional placements (30 days), and authorisation for import of gold and silver by banks (60 days).

As per one recommendation of the FSLRC, all regulators are required to move to a time-defined approval process, subject to applicable laws, for all permissions including licence to do business, as well as launch of products and services.


SEBI seeks clarification on rival bids for Mangalore Chemicals

Zuari Fertilisers, Deepak Fertiliser and Mangalore Chemicals & Fertilisers compete with each other in the fertilizer business, but a huge debt burden had triggered a takeover battle for the Vijay Mallya-led group unit

Market regulator Securities and Exchange Board of India (SEBI) has sought clarifications from two rival bidders who have made offers for acquisition of additional stakes in Vijay Mallya-led UB Group's Mangalore Chemicals and Fertilisers Ltd (MCFL).


The clarifications have been sought through merchant bankers of the two rival bidders -- Deepak Fertilisers and Zuari Fertilisers, among which the latter has been joined by the existing promoters of MCFL as 'persons acting in concert'.


According to latest data made public by SEBI, the clarifications were sought from JM Financial (merchant banker for Deepak Fertiliser group) on 20th June. Prior to that, SEBI sought additional details on June 17th, from ICICI Securities and Ambit Corporate Finance, who are acting as merchant bankers for Zuari in their proposed open offer for MCFL.


SEBI was still awaiting replies from the merchant bankers for both the open offers, says the latest update on 'processing status of draft offer documents' filed with the capital markets regulator as on 20th June.


It could not be ascertained whether there have been any developments since then and the next update would be provided by SEBI next week.


An open offer for acquisition of additional stake in a listed company can move forward only after issuance of 'observations' by SEBI.


The battle for MCFL started in April last year when Zuari Fertilisers bought about 10% in the company from SBI group entities in the open market.


Deepak Fertilisers followed with acquisition of a 24.46% stake in MCFL in July 2013. Zuari group then increased its stake to 16.43% in the same month.


Zuari, Deepak Fertiliser and MCFL compete with each other in the fertiliser business, but a huge debt burden on the Mallya-led group had triggered a takeover battle for MCFL.


Earlier in May this year, UB Group joined hands with the Zuari group to ward off a hostile takeover bid by Deepak Fertilisers for MCFL and offered to buy more shares in the firm at a 9% higher rate than their rival.


This counter offer came less than a month after Deepak Fertilisers raised its stake in the firm to 25.31% and made an open offer to buy an additional 26% at Rs63 per share, totalling Rs194 crore.


Saroj Poddar-led Zuari group has teamed up with the UB Group in its offer to buy a 26% stake for Rs68.55 per share for a total of Rs211.22 crore in MCFL.


UB Group currently holds nearly 22% stake in MCFL, but over half of their shareholding is pledged.


SEBI received the draft offer document from Deepak Fertilisers for an open offer worth Rs190.28 crore on 8th May. This was followed by receipt of the draft offer document by the Zuari group on 27th May for an open offer worth Rs211.23 crore.


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