Sensex, Nifty on a rallying mode: Weekly closing report

Nifty has to hold above its weekly low for the upmove to continue

The Sensex rose 364 points (up 1.76%) during the week that ended on 21st December and closed at 21,080 while the Nifty closed at 6,274 (up 106 points or 1.72%).


Market closed in the negative for the fifth consecutive trading day on Monday. The inflation data added to the worries about the possibilities of the Reserve Bank of India (RBI) raising the key rates. Inflation based on the WPI accelerated to 7.52% in November 2013, from 7% in October 2013, data released by the government. WPI for September 2013 was revised upwards to 7.05% from 6.46% reported earlier.


On Tuesday the market opened with full optimism after the US economic data indicated solid improvements in business activity across the country. The market awaited major triggers, Reserve Bank of India mid-quarter monetary policy review and the Fed’s two-day meeting, which were to come in the next two trading days. The market continued closing in the negative.


On Wednesday the market cheered the RBI surprise move of keeping the key rate unchanged. This broke the six days of falling trend.


However on Thursday the market again closed in the negative after the US Federal Open Market Committee’s came out with its plan to cut its monthly bond purchases to $75 billion from $85 billion. 


Post the US stance the finance minister P Chidambaram came out with a statement saying  "(The) government is of the view that the markets had already factored in the US Federal Reserve's decision and therefore is not likely to be surprised by these moderate changes," Chidambaram said in a written statement released by his office. Chidambaram also spoke to Reserve Bank of India Governor Raghuram Rajan on Thursday morning to discuss the Fed tapering, the statement added.


On Friday the market closed in the positive after the Sensex hit a seven day high and the Nifty hitting a six day high.


The top two gainers among the other indices on the NSE were IT (6%) and Pharma (5%) while the bottom two losers were Bank (-1%) and Finance (0%).


The top five among Nifty for the week were D L F (8%); BHEL (7%); Ranbaxy Lab (7%); Maruti Suzuki (7%) and Cipla (7%) while the bottom five losers were H D F C Bank (4%); Jindal Steel & Power (4%); Kotak Mahindra Bank (3%); Ultratech Cement (3%) and Grasim Industries (1%).


Of the 1,242 companies on the NSE, 773 companies closed in the green, 420 companies closed in the red while 49 companies closed flat.


Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:


Top ML sector


Worst ML sector


Software & IT Services




Foods & Beverages










Industrial Intermediates


Real Estate






Jayanthi Natarajan resigns as environment minister

Reportedly Jayanthi Natarajan is expected to be drafted in Congress for work relating to party manifesto and other election matters

Jayanthi Natarajan, the union minister of state for environment and forests has resigned as part of a shake-up within senior leadership in Congress. She would be reportedly drafted into party work ahead of the Lok Sabha polls.


The resignation of 59-year-old Natarajan has been accepted by the President, a Rashtrapati Bhavan communique said.


It also said that Oil Minister M Veerappa Moily will hold additional charge of the Environment Ministry.


Natarajan, a senior member of Rajya Sabha for the third term, hails from Tamil Nadu and was brought in the ministry two years ago.


Sources said she would be drafted in party for work relating to manifesto and other matters.


Sources said there could be some more ministers who could resign to be brought to party organisation in preparation for the election.



Dr Anantha K Ramdas

3 years ago

Ms Jayanthi Natarajan's decision to leave the Ministerial post and work for the party may be laudable for those in the Congress party.

It was reported, several months ago, that Jayanthi Natarajan had claimed that "there are no pending environmental issues, on her table". This may be so, simply because the "papers " were passed on to others. We have heard of "passing the buck" before, too.

Before she really leaves, and dumps the job on Veerappa Moily, could she please list out the "outstanding" issues i.e. of cases that need various clearances, in departments and at state levels, where the "cases" concerned on "pending?" for clearance?

Unless, of course, Moily wants to open the desk and find that he is looking at the Pandora's box?

If Coal India's units, and other organizations that need MOEF clearances,have cases pending for years on end, someone is responsible. Could Ms Natarajan clarify these
"pending" issues?

Deccan Chronicle’s appeal for sick unit rejected by BIFR

Deccan Chronicle Holding concealed several facts like its status as newspaper publisher, links with IPL team, criminal cases against its chairman and action taken by lenders under SARFAESI Act, which resulted in BIFR rejecting its appeal

Deccan Chronicle Holdings Ltd (DCHL), the controversial Hyderabad-based group, which runs newspapers and once owned a cricket team in the Indian Premier League (IPL), has had its application rejected under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA). More importantly, in a hard-hitting rejection order the group was told that while it approached SICA as an industrial undertaking, each of its units was registered as a newspaper and hence outside the purview of the Act.


The Appellate Authority at the Board for Industrial and Financial Reconstruction (BIFR), said, “The Central Bureau of Investigation (CBI) has registered a case against DHCL chairman T Venkatram Reddy for criminal conspiracy, cheating and forgery after finding several irregularities in the balance sheet of the company in a forensic audit.”


The registrar of BIFR while withdrawing Deccan Chronicle's registration had stated that the Ministry of Corporate Affairs (MCA) was inquiring into the alleged violations of Company Law by DCHL and this was concealed by the company while submitting its reference.

"On perusal of records, it is also observed that the company had ignored the mandatory provisions of law by not excluding from the relevant Balance Sheet such amounts, which pertains to those properties against which Indiabulls Housing Finance Ltd (IHFL) and other secured creditors have taken possession of the properties under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act). Thus the Balance Sheet on the basis of which the purported reference was made (to BIFR) was false and improper," the order said.


BIFR noted that DCHL in support of its claim of being an industrial undertaking has failed to submit a copy of relevant certificate issued by the Secretariat of Industrial Assistance. "Although the company is primarily in the business of newspaper, it had filed the reference showing its business to be that of printing which was completely misleading and factually incorrect. It is public knowledge that till recently DCHL operated the Hyderabad team of IPL and also runs more than 50 Odyssey stores across Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra and Delhi NCE dealing with consumer lifestyle products like books, music, stationery, gift and toys," the order said.


Deccan Chronicle had stated that action under Section 13(4) of SARFAESI Act had been taken only to the tune of 9.78% of its securities. However, the BIFR said, "a large number of secured creditors including India Bulls, Canara Bank, Kotak Mahindra, JM Financial, IDFC and State Bank of India (SBI) have confirmed that have initiated SARFAESI action individually against the company much more that what had been stated by DCHL."


"Notwithstanding the above it is also observed that DCHL made its reference (to BIFR) after action under Section 5(1) of the SARFAESI Act has been taken by JM Financial Asset Reconstruction Co Pvt Ltd and Pegasus Assets Reconstruction Pvt Ltd. This reference was, therefore filed in violation of Section 15(1) of the SICA, which states that, 'no reference shall be made to the BIFR after the commencement of the SARFAESI Act, where financial assets have been acquired by any securitization company or reconstruction company under sub-section (1) of the Section 5 of the Act'," the BIFR said in its order.


Here is the detailed order issued by BIFR against Deccan Chronicle...




3 years ago

As a south-Indian daily,">Deccan Chronicle has the fifth largest circulation among English publications in India. With editions in Karnataka, Andhra Pradesh, Kerala and Tamil Nadu, its major support is from urban areas of southern India. It is a cost-effective medium for advertising in south India. via myadvtcorner

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