Sensex, Nifty near support zone: Monday closing report

While the downtrend in Nifty is strong, watch if it holds Monday's low for the first sign of stability

The market fell further on Monday as the rupee hit a new lifetime low of 63.22 against the US dollar. The Sensex closed at the lowest since 12 April 2013, while the Nifty closed at the lowest since 11 September 2012. The statements made by  prime minister Manmohan Singh on Saturday to revive faith in the economic scenario was not of much help. The market may try to form a base here. Watch if today’s lows hold.


The Sensex opened in the negative at 18,587, which was the same level when it hit its days high and started falling gradually.  During the last hour of the session, it hit its low of 18,139, its lowest since 13 September 2012.  It revived later closed at 18,308 (down 291 points or 1.56%). Nifty opened in the negative at 5,498 and it hit its intra-day low of 5,361 towards the end of the session. This was Nifty’s  lowest since 5 October 2012. It later rallied and closed at 5,415 (down 93 points or  1.69%). The National Stock Exchange saw a volume of 61.90 crore shares, lower than last trading session.


All the major indices on the NSE except for India Vix (up 8.25%) and Nifty Dividend which ended flat, closed in the negative. CNX Nifty Junior was the top loser, down 2.42%.


Except for Metal (up 1.68%); IT (up 0.24%) and Realty (up 0.22%) all the other indices ended in the negative. PSU Bank (fell 3.38%); Bank Nifty (fell 3.24%); Auto (fell 3.19%); Dividend Opportunities (fell 2.75%) and Pharma (fell 2.62%) were the top five losers.


Of the 50 stocks on the Nifty, 14 ended in the in the green. The major gainers were Tata Steel (up 4.97%); Jaiprakash Associates (up 4.38%); Jindal Steel (up 2.74%); Reliance Infrastructure (up 2.43%) and Hindalco (up 2.08%). The top losers were Axis Bank (down 6.32%); IndusInd Bank (down 5.86%); IDFC (down 5.48%); Ambuja Cements (down 5.42%) and ICICI Bank (down 5.31%).


Prime Minister Manmohan Singh on Saturday told us that India wasn't headed for a crisis despite its large current-account deficit and said the country has plenty of foreign-exchange reserves. There is no comparison and no question of going back to the situation India faced in 1991, when the country was on the brink of defaulting on its debts.


In an attempt to ease concerns that the country was moving toward capital controls, economic-affairs secretary Arvind Mayaram told reporters on Friday that India doesn't plan to impose controls on money being repatriated by companies, such as dividends and royalties. His comments came after the Reserve Bank of India (RBI) on 14 August 2013, reduced the amount of money that Indian residents and companies can send abroad.


The increased effort on the part of RBI has not helped the currency sliding down to record low today. The currency fell to 63.22 against the US dollar, breaching the previous low of 62.03 hit on Friday. Finance secretary Arvind Mayaram told a newspaper that the government was not looking for now at taking further steps to tackle the rupee's fall, but wanted to watch the impact of its recent measures. Today rupee closed at historic low of 63.13 against the US dollar.


US crude oil futures for September delivery continued to surge fueling concerns of increase under-recoveries of state-run oil marketing companies.


US indices fell on Friday despite improving economic data. The Commerce Department reported housing starts climbed at an annual rate of 896,000, less than the 915,000 estimated. The Labor Department reported productivity rose at a slightly better-than-estimated 0.9% annual rate in the second quarter.


The Federal Open Market Committee (FOMC) on 21 August 2013, will issue minutes of its recent policy meeting held on 30th and 31 July 2013. The minutes of FOMC meet may help provide clues about the future of Fed's bond-buying program.


Except for Shanghai Composite (up 0.83%) and Nikkei 225 (up 0.79%) all other Asian indices ended the negative. Jakarta Composite a big bull market for four years now, fell the most (5.58%).


Japan's exports jumped by the most since 2010 in July, aiding Prime Minister Shinzo Abe's efforts to drive an economic recovery even as rising energy costs boosted the trade deficit. Exports increased 12.2% from a year earlier after a 7.4% rise in June, the Ministry of Finance said in Tokyo today. But imports climbed 19.6%, leaving a trade deficit of 1.02 trillion yen ($10.5 billion), the third biggest on record in data back to 1979. The seasonally-adjusted deficit widened from June to 944 billion yen.


Thailand cut its 2013 growth forecast as the country entered recession for the first time since the global financial crisis, with rising household debt limiting central bank scope to support the economy. Gross domestic product unexpectedly shrank 0.3% in the three months through June from the previous quarter, when it contracted a revised 1.7%, the National Economic and Social Development Board said in Bangkok today.


Back home, Siemens has won two contracts worth Rs144 crore to construct 38 new substations for improving power distribution in Bangladesh. The projects involve installing new and improving existing distribution facilities in the rural region west of Jamuna river. The stock rose 1.43% to close at Rs434 on the NSE.




3 years ago

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It is time to be greedy . . . when others are fearful.

Amendment in Maharashtra Stamp law makes FIs incriminate themselves

The amendment is certainly grossly harsh for financial institutions–FIs as it not only assigns the responsibility of stamp duty payment on them but also imposes a penalty in case of failure to comply

One of the major amendments of Maharashtra Stamp Act, 1958 has been insertion of Section 30A which requires any financial institutions (FIs) such as banks, non-banking financial companies (NBFCs), housing finance companies (HFCs) or alike to ensure that proper stamp duty is paid on all instruments which creates rights in favor of such instruments.


The amendment goes further to impose liability for not just such instruments executed post the amendment, but also such instruments, which though were executed before  commencement of this amendment but are effective after the amendment. And for such instruments FIs shall impound such instruments before 30 September, 2013


In exercise of powers conferred by sub-section (2) of Section 1 of the Maharashtra Tax Laws (Levy and Amendment) Act, 2013, the Maharashtra government vide Notification No.VAT 1515/CR 57/Taxation-1 dated 25 April 2013 made certain amendments in the Maharashtra Stamp Act, 1958 (the Stamp Act) effective from 1 May, 2013.


The amendment is certainly grossly harsh for the FIs as it not only assigns the responsibility of payment of stamp duty on the FIs but also imposes a penalty equal to the stamp duty payable on such instrument in case of failure to comply with the same. Moreover, the amendment requires the financial institutions to impound, on or before 30 September 2013 for all such insufficiently stamped instruments which were executed before 1 May 2013 and are effective as on date.


According to Oxford Dictionary, ‘impound’ means to take legal or formal possession. 


As per Section 33 of the Stamp Act… “Every person having by law or consent of parties authority to receive evidence and every person in charge of public office, except an officer of police or any other officer, empowered by law to investigate offences under any law for the time being in force, before whom any instrument chargeable with stamp duty is produced or comes in the performance of his functions, shall if it appears to him that instruments is not duly stamped, impound the same, irrespective whether the instrument is not valid in law.”


Proviso to Section 33 of the Stamp Act states that

“1) any magistrate or judge of criminal court shall not be deemed to examine or impound, if he does not think fit so to do, any instrument coming before him in the course of any proceeding other than proceeding under Chapter IX (order for maintenance of wives, children and Parents) or Part D of Chapter X (Disputes as to immovable property) and

b) a Judge of a High Court may delegate the duty of examining and impounding any instrument under the Section to such officer as the Court may appoint in this behalf.”


It is clear that the power to impound a document is with the authority specified in the Section. Also, impounding can only be done at a time when the instrument is produced or comes in the performance of the function of the authority. Hence it does not fit in the rationale for a stamp act amendment to require the FI on suo moto to go for impounding of the document, which under the Act itself is not permissible and it can only be done when produced before the empowered authority.


In view of the above-mentioned, the executor of an instrument itself being expected to impound what is not duly stamped (instrument) is like imposing self-incrimination


This amendment with retrospective effect will surely not be well received by the FIs. Impounding by FIs for inadequate stamp duty paid on instruments executed prior to 1 May 2013 and effective as on date will be cumbersome. This is surely a draconian amendment requiring the party who is the offender to impound for the instrument not properly stamped on or before 30 September 2013.


(The author can be contacted at [email protected])


Axis hikes lending rate while Dena Bank increases deposit rates

Axis Bank increased benchmark lending rate to 10.25% while Dena Bank hiked term deposit rates by 1% for select deposits

Axis Bank, India’s third largest private sector bank, on Monday increased its benchmark lending rate by 0.25% to 10.25%. It will make home, auto and corporate loans costlier than other loans linked with base rate or the minimum lending rate.

“The new base rate will be effective from 19 August 2013,” the lender said in a statement.


On the other hand, Dena Bank, one of the oldest banks in India, has revised its term deposit rates. The lender hiked interest rates by 1% on its foreign currency non-resident bank (FCNR-B) and resident foreign currency (RFC) term deposit rates. For deposits of three years to less than four years, the new deposit rate would be 4.78% and for deposits of four years to less than five years it would be 5.17%. However, interest rates for FCNR/RFC deposits of between two and three years remain unchanged at 2.48%. For deposits between one and two years, the rates remain at 2.67%, the bank said.


Dena Bank’s FCNR (B)/RFC term deposit Rates

 (Interest in % terms p.a.)

Maturity Period








1 year to less than 2 years















2 years to less than 3 years















3 years to less than 4 years















4 years to less than 5 years















5 years only















Figures in brackets indicate previous rates for August 1 to18, 2013.


Last week ICICI Bank and HDFC Bank increased interest rates on domestic term deposits (NRO) deposits and NRE deposits. While in the case of ICICI Bank, the interest rate hike varies between 0.5 and 0.75%, HDFC Bank increased interest rate by 0.25%. Public sector lender Andhra bank also hiked its base rate 0.25% to 10.25% during last week.



Ramesh Poapt

3 years ago

Retail Indian depositor is the only 'bechara'or joker in the pack!.Lending rates up NRE/FCNR rates up, but FD rates are increased considering him as bagger (fractionalrise), so that the real interest rates are too NEGATIVE den d real inflation!sorry,poor commonman/sr.citizen,God bless you as FM is not in yr favour!

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