Nifty has to stay above 6,200 for the short upmove to continue
Yesterday, we mentioned that a close well above 6,200 is needed to for Nifty to be back on an uptrend. Today the market has given this short-term signal for an upmove. Tomorrow, Nifty has to stay above 6,200 for the upmove to continue. If the rally continues, it could reach 6,275-6,300 levels.
It was widely anticipated that the Reserve Bank of India (RBI) will raise repo rate to rein in inflation, however, the RBI kept its main lending rate unchanged. This surprised the markets and the indices reacted positively and closed in the green breaking the six-day losing streak.
However, the RBI maintained that it may act upon key interest rates in between policy reviews, should headline or core inflation not ease as expected. Now, the markets look forward to the US Federal Reserve's two-day meeting on its quantitative easing (QE) programme ending later in the day.
The Sensex and Nifty opened at 20,569 and 6,130 which was also the intra-day-low of the day. Post the RBI policy announcement, the market gained strength. The Sensex and Nifty hit a four day (including today) high at 20,918 and 6,236 respectively. The Sensex closed at 20,860 (up 248 points or 1.20%), while Nifty closed at 6,217 (up 78 points or 1.27%). The NSE recorded a higher volume of 66.83 crore shares.
All the other indices on the NSE closed in the positive. The top five gainers were Realty (3.39%); PSU Bank (3.03%); Nifty Midcap 50 (2.28%); Energy (2.15%) and Infra (1.93%).
Of the 50 stocks on the Nifty, 46 ended in the green. The top five gainers were BHEL (6.32%); DLF (5.63%); PNB (4.74%); IndusInd Bank (4.29%) and Bajaj Auto (4.08%). The only three losers were Jindal Steel & Power (0.87%); Sesa Sterlite (0.57%) and UltraTech Cement (0.27%).
Of the 1,224 companies on the NSE, 809 closed in the positive, 346 closed in the negative while 69 remain unchanged.
US indices closed flat with a negative bias yesterday. European indices are trading in the green while US futures were also trading higher. Asian indices had a mix performance. Nikkei 225 (up 2.02%) was the top gainer while NZSE 50 (down 1.10%).
Japanese merchandise exports rose 18.4% from a year earlier to 5.901 trillion yen in November, the Ministry of Finance said Wednesday, the ninth straight month of increase. In September, exports rose 18.6%. Imports rose 21.1% to 7.193 trillion yen in November, the largest figure ever seen for the month, the data showed. Japan's trade surplus came to a deficit of 1.293 trillion yen, up 35.1% from a year earlier and marking the 17th consecutive month of shortfalls, the ministry said. That's larger than any deficit recorded for the month of November in figures dating back to 1979.
The new law is a significant step towards creating awareness on the issue of workplace sexual harassment and ensuring women a safe and healthy work environment
Media coverage of the complaint against Tarun Tejpal and Justice Ganguly (retired Supreme court judge) have only brought home the fact that most people are clueless about the stringent new provisions of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (Act).
Moneylife Foundation invited Anagha Sarpotdar, a consultant of gender and socio-legal issues and Advocate Mini Mathew to address issues related with sexual harassment at workplace in its 192nd seminar held on 18 December 2013 at the Indiabulls Finance Centre, Mumbai.
Ms Sarpotdar explained the overview of the Act and its obligations and implications for companies and employees. She said, the law casts an obligation upon the employer to address the grievances in respect of sexual harassment at workplace in a time bound manner, which in several cases may not be practically possible as the employees or witnesses involved may not easily or readily co-operate.
She said, the definition of 'aggrieved woman' in the Act does not make a reference to victimization on the part of the employer of the employee who has made the complaint of harassment, which would be fairly common in such situations. Also, in order to cover some of the technological developments, words like 'verbal, textual, physical, graphic or electronic actions' should have been added in the definition of 'sexual harassment', Ms Sarpotdar said.
The Act mandates employer to provide a safe working environment and display conspicuously at the workplace, the penal consequences of indulging in acts that may constitute sexual harassment and the composition of the Internal Complaints Committee (ICC).
Adv Mathew explained in detail the impact of the Act on organisations, structure of anti-sexual harassment committees and compliance requirements.
Unlike some of the other laws, the Sexual Harassment Act if implemented well, which in itself would go a long way in protecting the employees' interests and well-being in India.
Trent shares surged 18% during early trade Wednesday following news of UK-based Tesco buying 50% stake in Trent Hypermarkets through FDI route
Trent Ltd (Trent) surged 18% during early trade Wednesday on the news of Tesco PLC (Tesco), United Kingdom’s largest retailer, planning to buy 50% stake in the company’s unit. Trent Hypermarket Ltd (THL) is wholly owned subsidiary of Trent that operates retail business under the name of ‘Star Bazaar’.
No financial details were provided, but quoting an official at Indian trade ministry, Reuters, said, “Tesco has made an application to India's Foreign Investment Promotion Board (FIPB) and plans to invest $110 million.
Share price of Trent has been moving higher, especially over the past two months, it is witnessed higher trends. Between 3rd November to 17th December, Trent increased 15.8% to Rs1066.6.
Caption: Trent (Share Prices of November 2013 – December 2013)
“We believe that our understanding of the Indian Market coupled with Tesco’s unparalleled global retail expertise will allow us to leverage the tremendous potential of the market to the benefit of all the stakeholders,” said Noel Tata, vice chairman of Trent Ltd, in a press release.
In a regulatory filing, Trent said Tesco is in the process of making an application to the FIPB with respect to the proposed investment. Tesco will enter into the partnership with 50% stake in THL, subject to FIPB approval.
“THL currently operates 16 stores across the southern and western regions of India. The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka. The application envisages a minimum FDI in line with the application multi brand retail trading policy,” said THL in a press release.
Trent closed Wednesday 10.7% higher at Rs1181 on the BSE, while the Sensex ended 1.2% up 20,859.