Even if there is a rally, it would be a slow and weak one
The market opened with decent gains as investors went bargain-hunting, picking up stocks at lower levels after the decline seen last week. The uptick was also supported by the Asian peers, which were mostly higher in early trade, most of which opened after the Lunar New Year holiday last week. Choppiness resulted in the indices touching their previous close a couple of times, but positive momentum continued with the market trading range-bound. However, the broader markets wilted under selling pressure, trading in the red. Institutional investors seem to be looking at other markets as India is no longer as attractive as it has been last year.
The market touched an intraday high in post-noon trade after which selling pressure became intense, pushing the key benchmarks into negative terrain. However, the indices were able to pull themselves out of the red, only to finish flat.
The Sensex and the Nifty both opened with a positive gap at 18,135 (127 points up) and 5,430 (34 points up) respectively. For the major part of the day, both the indices traded above Friday's closing. In the last two hours of the trading session, the indices hit their intraday highs, but soon slipped to touch the day's low. They did not fall below Friday's low.
Although the market ended positive, it closed well below the day's opening. The Sensex ended 29 points up at 18,037 while the Nifty ended 0.25 points up at 5,396. The advance-decline on the National Stock Exchange was a poor 587:1,141. The market is not out of the woods yet. The Nifty has to cross 5,550 before we can look forward to some sort of rally.
The market breadth on the Sensex and Nifty was in favour of the gainers. The Sensex had 21 advancing stocks and nine stocks in the declining list, while the Nifty closed with 29 stocks in the green and 21 in the red. The broader indices underperformed the Sensex with the BSE Mid-cap index declining 0.52% and the BSE Small-cap index falling 0.83%.
The sectoral gainers were led by BSE Realty (up 1.67%), BSE Fast Moving Consumer Goods (up 1.42%) and BSE IT (up 0.18%). The top losers were BSE Healthcare (down 1.50%), BSE Consumer Durables (down 1.32%) and BSE Capital Goods (down 1.11%).
The top Sensex gainers were Hero Honda (up 2.75%), ITC (up 2.62%), DLF (up 2.32%), Jaiprakash Associates (up 2.27%) and NTPC (up 1.47%).
Cipla (down 2.95%), HDFC (down 2.07%), Wipro (down 2.05%), Hindalco Industries (down 1.96%) and Larsen & Toubro (down 1.89%) ended at the bottom of the list.
The government on Monday estimated economic growth for the current financial year at 8.6%, as against 8% a year ago. The Central Statistical Organisation's (CSO) gross domestic product growth projection is higher than the forecasts made by the country's central bank-Reserve Bank of India-and India's finance ministry earlier.
The latest GDP growth estimate of 8.6% for the entire fiscal means that the pace of economic expansion slowed in the second half of FY2010-11, given that GDP growth in the April-September 2010 period stood at 8.9%.
Markets in Asia closed mixed as economic optimism in the US lifted investor sentiment, while worries that the authorities in China will consider additional curbs to rein in prices after the Lunar New Year holiday, kept investors guarded.
The KLSE Composite rose 0.25%, the Nikkei 225 gained 0.46% and the Seoul Composite advanced 0.47%. On the other hand, the Hang Seng tanked 1.49%, the Jakarta Composite declined 0.24% and the Straits Times fell 0.59%. The Chinese and Taiwanese markets remained closed today.
Back home, institutional investors were net buyers in the equities segment on Friday. While foreign institutional investors pumped in funds worth Rs144.04 crore, domestic institutional investors bought stocks worth Rs237.45 crore.
State-run power equipment-maker BHEL (up 0.51%) today said it has signed an agreement with Spain's Abengoa to set up solar power projects in India. The agreement will enable both organisations to leverage their capabilities in offering EPC solutions for solar power projects in India, as well as give them the opportunity to explore cooperation on energy projects in other parts of the world.
The agreement is significant in the context of the Jawaharlal Nehru National Solar Mission launched by the government, which aims at the establishment of 20,000MW of solar power generation capacity by 2022.
Tecpro System (down 2.01%), a key player in the power sector, has entered into an exclusive collaboration agreement with Nanjing Triumph Environment and Energy Company, China (NTK) for waste heat power (WHR) projects in the Indian markets.
NTK is a leader of WHR projects in China, having executed more than 120 such projects. The company will provide turnkey EPC solutions in WHR projects to the Indian cement industry along with NTK as the technical associates.
Accentia Technologies (up 0.79%), a leading global end-to-end business process management and consulting company offering managed services in Healthcare Receivables Cycle Management (HRCM), has bagged an order worth Rs25 crore for providing high-level consulting and education solutions for a large, diversified educational trust in south India with over 100 well established institutions and having over 35,000 students over the next three years.
The scope of work comprises financial restructuring, value unlocking, operations and management contract, market positioning, brand management, academic restructuring and effective interventions and devising a dynamic student mobilisation strategy for the group.
Speaking at Moneylife Foundation’s first anniversary function in Mumbai, the RBI deputy governor said banks are bound to give proper service to customers and people must demand this. People should not patronise banks that do not do things right, no matter how big they might be, he said
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Got a problem with your bank? Just go ahead and demand better service, says Dr KC Chakraborty, deputy governor, Reserve Bank of India (RBI). "Banks cannot deny customers service. If they make excuses, the customers should put their foot down and demand their due," he said, while speaking at the first anniversary function of Moneylife Foundation in Mumbai on Saturday.
Dr Chakrabarty said that it was up to the customer to be more vigilant and demand their rights. "Instead of running to the regulator every time something goes wrong, the customer should approach the bank directly. A bank is bound to give him service, and people have to demand it from them. Do not patronise those banks who do not do things right, no matter how big the bank might be. In case things really do not work out, change your bank", the deputy governor of the RBI said.
He criticised banks that refused to allow a customer to open an account citing the Know Your Customer (KYC) protocol. He said KYC was a set of guidelines and should not come in the way of giving services. The issue is pertinent with regard to many banks refusing to accept ration cards as identity proof. Dr Chakrabarty agreed that it was a pressing problem, especially for rural customers. However, with the market being flooded with bogus ration cards, many institutions have stopped accepting this as a precaution. He said, "Banks cannot refuse a customer who wants to open a new account. If they cannot accept ration cards as one of the proofs, then they should suggest and accept alternatives which are valid."
A packed audience at the Welingkar Institute of Management Development & Research listened attentively to the animated address by the RBI deputy governor.
Dr Chakraborty also spoke about signature forgery and ATM frauds. According to the existing process, in case a customer complains that money has been withdrawn from his account without his consent and through fraudulent means, it is up to him to prove this charge. "It should be the other way round", he said. "It should be up to the bank to clarify that the money is not drawn fraudulently."
The RBI has asked all banks to reimburse customers the amounts that may be wrongfully debited on account of failed ATM transactions, within a maximum period of 12 days from the date of receipt of the customer's complaint. Failure to re-credit the customer account within the stipulated period would result in the bank having to pay Rs100 a day to the aggrieved customer, the deputy governor said.
But the onus is on the customer as well, to understand the limitations. Customer service is a critical but often misunderstood area, he said. "Unfortunately, in India, the customer expects world class service with zero payment," he remarked. While the bank must be empathetic to the customer, the move should be reciprocal. "It is the duty of society at large to sensitise citizens to each others situation, so there is effective service delivery," Dr Chakrabarty said.
(Also read: No proper rules and technology hamper banking services, says RBI deputy governor)
The government will also release four CPI (Consumer Price Index) inflation series-CPI for industrial workers, CPI for agricultural labourers, CPI for rural labourers and CPI for urban non-manual employees
New Delhi: The government today said the new consumer price series for rural, urban and combined (rural + urban) for January, reflecting the impact of price rise on common man, will be released on 18th February, reports PTI.
These consumer indices will be available for five major groups-food, beverages and tobacco; fuel and light; housing; clothing, bedding and footwear; and miscellaneous. The indices will be released for states/Union Territories and all India.
The government will also release four CPI (Consumer Price Index) inflation series-CPI for industrial workers, CPI for agricultural labourers, CPI for rural labourers and CPI for urban non-manual employees-which it will continue to do. Besides, wholesale prices are measured by the wholesale price index (WPI).
The present four CPI numbers do not encompass all the segments of the population and as such they "do not reflect the true picture of the price behaviour in the country," chief statistician TCA Anant said.
"It is therefore, necessary to compile a CPI which takes into account the consumption patterns of all segments of the population," he said on the sidelines of the 15th Conference of Commonwealth Statisticians here.
The base for the new series will be January-December 2010.
CPI urban and CPUI rural are compiled at state, UT and all India level. For regular price collection for CPI (urban) 310 towns have been selected, while for the rural data, 1,181 villages spread across India have been selected.
"CSO will also compile national CPI by merging CPI (rural) and CPI (urban) with appropriate weights," Mr Anant said.
The government proposes to release provisional indices for a period of one year.
"These provisional numbers will be subsequently revised and final numbers with complete data for all-India and also for all the state and UTs would be released with a time lag of two months," Mr Anant said.
He said there may not be any need to bring out separate provisional numbers after December 2011, as the data reporting is expected to be considerably improved.
Retail inflation for items consumed by industrial workers increased to 9.47% in December 2010 from 8.33% in the previous month, mainly due to dearer food prices.
The wholesale price index-based inflation rose to 8.43% in December from 7.48% in the previous month.
WPI food inflation rose to 17.05% for the week ended 22nd January on account of escalating vegetable prices, particularly, onions.
The share (weights) of food, beverage and tobacco group in the new rural index would be 59.31%, whereas it would be 37.15% in the urban index. Similarly, fuel and light group would have a weight of 10.42% (rural) and 8.4% (urban).
The miscellaneous group consisting of education, medical care, transportation and communication would be having a 24.19% weight in the rural index and 8.28% in the urban index.
The new CPI numbers would be revived on the basis of the results of the next round of Consumer Expenditure Survey scheduled to be conducted during 2011-12 by the National Sample Survey Organisation.
Thereafter, revision will be taken every five years.