Sensex, Nifty on a small upmove: Friday Closing Report

The upmove may continue if the Nifty closes above 5,830

The domestic market surged nearly 2% on hopes that the Reserve Bank of India (RBI) will cut rates in its mid-quarter policy review on Monday. The upmove may continue if the Nifty closes above 5,830. The National Stock Exchange (NSE) witnessed a turnover of 53.01 crore shares and advance-decline of 952:441.


The market opened in the positive on supportive cues from the Asian markets, which were in the green in early trade today. The Asian pack was trading higher as optimism from the US eased fears of the US Federal Reserve tapering its stimulus. Investors were focussed on the release of WPI inflation data later in the day for further direction to the market.


The Nifty opened 50 points higher at 5,749 and the Sensex started off at 18,960, a surge of 133 points over its previous close. The indices touched their lows in initial trade itself with the Nifty falling to 5,739 and the Sensex going back to 18,952.


Buying support from consumer durables, auto, realty and capital goods stocks soon saw the benchmarks gaining momentum and heading northward. A dip in the headline inflation in May to 4.70% from 4.89% in the previous month continued to boost investor sentiment in the noon session.


The benchmarks extended their gains in late trade on support from rate-sensitive sectors on hopes that the RBI will cut rates on Monday to spur growth. The market hit its high in the last hour of trade on help from Reliance and Tata Motors, which gained over 2% and 4%, respectively. The Nifty rose to 5,819 and the Sensex climbed to 19,213 at their respective highs.


The market snapped its three-day losing streak and settled with gains of nearly 2% on hopes of a rate cut on Monday.  The Nifty gained 109 points (1.92%) to 5,808 and the Sensex jumped 351 points (1.86%) to settle at 19,178.


The broader indices also ended in the positive. The BSE Mid-cap index rose 1.19% and the BSE Small-cap index rose 1.03%.


All the sectoral indices ended in the positive. Among the top gainers were BSE Consumer Durables (up 3.52%); BSE Auto (up 3.01%); BSE Realty (up 2.86%); BSE Metal (up 2.50%) and BSE Capital goods (up 2.37%).


Out of the 30 stocks on the Sensex, 26 settled higher. The top gainers were Hindalco Industries (up 7.07%); Tata Motors (up 4.91%); Maruti Suzuki (up 4.09%); Tata Power (up 3.72%) and L&T (up 3.41%). The losers were Wipro (down 0.71%); Hero MotoCorp (down 0.41%); Cipla (down 0.24%)  and Hindustan Unilever  (down 0.24%).


The top two A Group gainers on the BSE were—Jet Air India (up 8.47%) and JSW Energy (up 7.95%).

The top two A Group losers on the BSE were—MMTC (down 9.98%) and Apollo Tyres (down 5.61%).


The top two B Group gainers on the BSE were—Menon Pistons (up 19.96%) and Wheels India (up 19.48%).

The top two B Group losers on the BSE were—Venus Universal (down 20%) and GG Dandekar (down 18.85%).


Of the 50 stocks on the Nifty, 45 ended in the in the green. The main gainers were Hindalco Industries (up 8.47%); Tata Motors (up 4.79%); Maruti Suzuki (up 4.08%); Jaiprakash Associates (up 4.03%) and Tata Power (up 3.71%). The losers were IndusInd Bank (down 1.47%); Hero MotoCorp (down 0.86%); Hindustan Unilever (down 0.18%); Bharti Airtel (down 0.07%) and Cipla (down 0.05%).


Markets across Asia closed on optimism from the US as retail sales rose the most in three months and jobless claims dropped. This apart, news reports suggested that the Fed may “push back” its decision to taper its bond buying programme on higher interest rates. The Chinese benchmark rose on news that homes sales in Beijing in the first five months of the calendar year 2013.


The Shanghai Composite rose 0.21%; the Hang Seng climbed 0.99%; the Jakarta Composite jumped 3.04%; the KLSE Composite gained 0.75%; the Nikkei 225 surged 2.52%; the Straits Times advanced 0.87% and the Seoul Composite settled 0.20% higher. Bucking the trend, the Taiwan Weighted fell 0.29%.


At the time of writing, two of the three European markets were in the green while the US stock futures were in trading with a mixed bias.


Back home, foreign institutional investors were net sellers of equities on Thursday amounting to Rs558.06 crore while domestic institutional investors were net buyers of equities aggregating Rs713.77 crore.


Tribhovandas Bhimji Zaveri will be introducing the scheme of NO making charges on certified diamond jewellery at all TBZ-The Original stores in Maharashtra and has made tie up with multi banks for ‘Easy installments scheme’ for this monsoon season from June 15, 2013 to June 30, 2013. The stock rose 1.42% to close at Rs206.50 on the NSE.


Solitaire Machine Tools has bagged orders worth over Rs5 crore for its newly developed grinding machines from two major auto ancillary manufacturers. The stock rose 2.88% to close at Rs12.50 on the BSE.


Maoists’ violent acts are damaging the cause of the tribals in Chhattisgarh

The real reason for Maoist presence is the indefensible antipathy of the government to follow the policy of development with justice to the tribals, which alone will make Maoist influence wither away

The recent murderous attack by Maoists in Chhattisgarh resulting in death of 28 persons, including key state Congress leaders, their security officers and ordinary villages of area, has to be treated as a diabolical act by the self-styled leaders of the “revolutionary movement”, CPI (Maoist), who delude themselves that they are struggling for bringing about a revolution of workers and peasants.

One of the seriously injured persons, senior Congress leader VC Shukla, died on Wednesday, 12 June 2013. In fact, I would describe the activities of these ‘revolutionaries’ a massive mad act which has damaged greatly the cause of tribals. It is also most foul as Maoists have tried to stop political activity they do not agree with through violent means. Their politics is as evil as those they claim to be fighting against and should be rejected outright by all those who stand for democratic norms in political struggles for peace with justice.

If people expected that the two major political parties will, realising the urgency of the situation, forget their petty public posturing, they were mistaken. While Union home minister Sushilkumar Shinde and chief minister Raman issued a statement that they are going to work together, state Congress leaders have announced that they are boycotting the all-party meeting called by the Chhattisgarh chief minister. Even within Congress high-ups there is now a sharp division —while one central minister, who used to take a somewhat humanitarian approach to the Maoist problem, now calls them ‘terrorists’, a Central tribal minister has rightly warned against this approach and reproached the state government for having encouraged Salwa Judum’s sinful strategy, and which was also so commented adversely by the Supreme Court.

Even the normally conservative Planning Commission has suddenly thought fit to suggest universal coverage and to do away with the BPL test in 22 most backward of 82 IAP districts. Did we need these murders to face the reality of the total deprivation of the tribals and their desperation, which provides easy catch to Naxalite groups?

Naxalite leaders have made no secret of their aim. They feel (though in my opinion they are disastrously mistaken) that by spreading terror and trying to keep some areas outside the civil authority, they would one day be able to launch a fierce onslaught to capture political power in Delhi even if they are said to have a strong presence in 185 districts out of the total 607 districts. This is because the Indian state, however weak, will never be so weak as to allow itself to be taken over by such rump groups, even if it is able to equip itself with some arms—the fire power of a modern state is too overwhelmingly superior to Maoist groups. The real reason for Maoist presence is the indefensible antipathy of the government to follow the policy of development with justice to the tribals, which alone will make Maoist influence wither away.

But that requires taking on the corporate sector which is ravishingly exploiting the mineral wealth and denying to the tribals even their modest share. Why does the government not accept the suggestion of human right organizations, including the PUCL, to hold public discussions on this vital matter in the presence of tribal leaders, among others? Is the reason the presence of many mine owners belonging to the ruling party at the Centre? This charge finds support from the continued detention of Soni Suri, a social worker among tribals, on a fake charge of being a conduit for passing money to Maoists on behalf of a mining company given to her by the company’s contractor—inexplicably he has been denied bail, but the contractor or the owner has not been arrested. One is pained to see this strange nexus between the ruling party and the corporate sector.

Of course, I accept that the Maoist act of brutality and terrorism can never be justified, even if they be in response to equally heinous and brutal acts unleashed by the security forces, as we are seeing presently in Chhattisgarh. This situation no doubt poses a knotty question and the Supreme Court has answered thus: 

“Indeed, we recognise that the state faces many serious problems on account of Maoist/Naxalite violence. Notwithstanding the fact that there may be social and economic circumstances, and certain policies followed by the state itself, leading to the emergence of extremist violence, we cannot condone it. The state necessarily has the obligation, moral and constitutional, to combat such extremism and provide security to the people of the country. 

“However the primordial problem lies deep within the socio-economic policies pursued by the state in a society that was already endemically and horrifically suffering from gross inequalities. Our Constitution provides the guidelines within which the state is to act, both to assert such authority to transgress those guidelines is to act unlawfully, to imperil the moral and legal authority of the state and the Constitution.”

It is, however, very important that the revolting nature of extremist acts cannot serve as a basis or pretext for the governments to disregard their national and international obligations, the caution highlighted by the International Council of Jurists in its Berlin Declaration on 28 August 2004, namely that “both contemporary human rights and humanitarian law allow states a reasonably wide margin of flexibility to combat terrorism without contravening human rights and humanitarian legal obligations.    

A warning has been given in a report titled “Development Challenges in Extremist Affected Areas” by an expert group constituted by the Planning Commission of India in the following manner: “In the case of tribes in particular it has ended up in destroying their social organization, cultural identity, and resource base... which cumulatively makes them increasingly vulnerable to exploitation.”

And yet, all that the government does is not to face the causes of the rage and despair that nurture such movements. Instead, it considers the matter as a menace, a law and order problem that is to be rooted out with the use of force. This cycle of mindless violence and counter-violence may continue unless the state honestly acts in the interest of the poor and the tribals, and does not connive with corporate mine owners in their exploitive acts.

(The writer is a former chief justice of the Delhi High Court.)




4 years ago

This is the summum bonum of all conflicts i.e. politics. After providing the protagonists with a cause celebre (excuse) they become irrelevant. This is no different from the sixty five years that have been devoted to looting and raping the poor and helpless of India for their benefit! The only beneficiaries of Indian independence have been the ruling elites and their cronies!!!

Mun Mohan Kale

4 years ago

Maoist activities are just akin to Terrorist activities. Only innocent lower strata & tribal people are affected. All these years govts showed apathy towards travails of the people as the ruling party leaders are not affected. Now with Chattisgarh incident as congress leaders are killed a big hue & cry is being made. What have the govts done to develop the areas & wean away locals from the Maoists. Some tangible action is required. Even now they are contemplating stricter measures. Existing laws are enough if they are properly & promptly implemented.

Zen Technologies case: Do SEBI buyback rules favour big investors like Rakesh Jhunjhunwala?

Zen Technologies bought the 10% stake of Rakesh Jhunjhunwala @ Rs70, under its ongoing buyback offer. This left hardly any buyback from retail investors which boils down to one rule for the big investor, another for the small guys


Zen Technologies was in the market to buy back upto 18% of its equity, i.e. 16 lakh shares up to a price of Rs90. A fair rule would have meant that the company would have bought shares in equal proportion from all the shareholders. However, Bosco Menezes, an investor, points out that the company has conveniently almost finished its buyback offer to the extent of 9.5 lakh shares in buying the bulk of the 10% stake held by big investor Rakesh Jhunjhunwala in the company.  Jhunjhunwala holds 9 lakh shares while Zen has bought 892,405 shares out of his stake @ Rs70, under the ongoing buyback offer. This leaves the company just 6.5 lakh shares to buy from the public.
The question is, why are small investors not allowed to exit on similar favourable terms, as Jhunjhunwala, asks Menezes. If the company is willing to spend big money—Rs6.25 crore—to allow Jhunjhunwala to exit, why not spend a few lakhs to allow some small investors to exit on similar terms (around Rs 70)?
The scrip was hovering around Rs70 for long but immediately after the buyback, it collapsed to around Rs60, though only around 4,000 shares have been traded since 10 June 2013. Clearly, the company has given an option to Jhunjhunwala on favourable terms, which he would not have managed, if he used the public market to sell his 9 lakh shares. 




4 years ago

This does not seem like an article but more like a forum to publish the complaint from Bosco Menzes who is a long term shareholder of the company being mentioned in this article

Please do your own analysis before writing an article, atmost you can quote from a shareholder but not put in verbatim everything the person says.

Let me present a few facts before the author on this company.

First, Zen Technologies sold 9 lakh shares to RJ at Rs 125 each in 2008 and bought back the same shares at Rs 70 each after 6 years. That is a pure profit of Rs 5 Crore plus with no dilution to shareholding. Best Return on Capital Employed. In these six years the Net worth of the company doubled. If you are a shareholder you will applaud the management for this.

Second, Rakesh Jhunjhunwala sold his shares in buyback almost one month after the buyback stared. During this one month if you look at the shares traded, hardly any shares were offered for buyback because everybody expected to sell around Rs 90 which is the upper limit the company had offered in the buyback.

I am assuming RJ might have called up the registrar and informed that he is willing to put up his shares as block and would the company buy the block at Rs 70.

If I am the management, I would have taken a decision to take that offer immediately because buying the same 9 lakh shares in open market would have taken the share price to 130 - 140 as there was no liquidity. This is a business decision, agreed RJ if he had wanted to sell his shares in the open market the stock would have tanked, but his zen stake is less than 1% of his total portfolio, being a shrewd investor he is, he would never sold in this bad market. So, it is ZEN which got the better deal by buying RJ's share.

Third, now that RJ has sold his stake, everybody wants to sell their shares too...again If I am the management, I have already bought 9 lakhs shares and I have the mandate to buy 16 lakh shares and the total amount I have for buyback is 10 crores out of which I have already spent 6.3 crore to buy RJ's share. At what price should I buy to buy a total of 16 lakh shares i.e at Rs 53 per share. ( Do the Math )

when there was no supply from open market it does not make sense to buy shares at high price and RJ offers you take it.
RJ made a good decision and Zen Management made an excellent decision.

Now there is a huge supply of zen shares and I as a management want to make the best bang out of my buck, I will wait for the right price i.e 53

If you are an existing shareholder which I am for a long time, it is time for me and you to jump in joy. Your company is making the biggest bang out of its buck. Your share is more valuable today than it was before RJ sold and it will be much more valuable when the company buys the rest 7 lakh shares at Rs 53.

If you are RJ follower, then you will cry and go to other people who will feel pity for you. If you do not have the sense to do your analysis, you will suffer for other's follies.

I am not saying it was a mistake by RJ to buy Zen, no one is super god when it comes to buying shares, even warren buffet has his share of duds and RJ is not an exception to this rule.

But, following a herd mentality will only lead to tears and suffering which the comments section in this article is showing.

If you are that lucky shareholder who still has shares in this company, then I suggest that you go ahead and buy more shares, any management which has made profit from even RJ is a management you should stick with.

I am sick of Bosco Menzes and others who cry for their losses and blame others for their actions.

Be a man and own your mistakes.

And to the author, you are in a financial magazine, not a social magazine, if you feel sorry for the ex-shareholders write about it in your life section but if you want a career in the business section, think like a businessman and write like one.

My name is Srinivas M and I am a shareholder since 9 years. If you want a open debate on this you can come to the AGM this year.


Bosco Menezes

In Reply to Srinivas 4 years ago

Hi Srini,

Please get one fact correct first right at the begining - I am NOT a shareholder of Zen Technologies. I was indeed a shareholder in the past, which is why i still track the company.

If you have read the comments section, you would have seen that i have already mentioned in one of my posts that i do not hold shares in the company. But maybe you have indeed read that, as you refer to "ex-shareholders" later in your post.

Your point is that the company has made money (got a bang for it's buck).

My point is exactly what i have said before - If you are helping a big shareholder (in this case RJ) to exit at one rate, do please allow the small shareholder the same courtesy.

And precisely because the big shareholder exiting happed to be RJ, who has a huge fan following, management of Zen Tech should have been extra vigilant in the next few days to make sure that follow-up selling from retailers was picked up at around the same level.

I absolutely reject your contention that management should try to buy the remaining shares at Rs 53, i.e. 24% discount to RJ's exit price.

I think that that would be extremely unfair to those shareholders who may want to exit in the buyback offer (whether influenced by RJ's exit or not). We can have a difference in opinion on this, but i am clear in MY mind that it would not be the ethical thing to do.



Bosco Menezes

4 years ago

Today again weighted average price of Zen Tech was Rs 63.49 on BSE.
I fail to see why the company cannot keep a buy order at Rs 70 which shareholders can fill in ?
PS : Just for the record, i do not hold the stock, nor does my family. If any will benefit by my suggestion, it will be those shareholders who might want to exit.
The company has recently got orders after a lean period, so exit might not even be the wise thing to do. But this does not relieve the company of what i feel is it's DUTY to allow shareholders the same option to exit (if they wish) at Rs 70/-as RJ.

Mitranand Financial Services Pvt Ltd

4 years ago

We have to make certain facts clear in out mind before investing in stock market in India..that may help us to live in reality

So called big investors ... actually are insiders,price manipulators and cartel members..there is no WB in India

SEBI's main function is to help stock brokers and big corporates by passing consent orders.. for investors they are just working like post office ..sending their complaint to promoters and promoters' reply to investors

Bosco Menezes

4 years ago

The Buyback offer allows the company to buy back upto 18% of it's equity, i.e. 16 lakh shares upto a price of Rs 90/-. An earlier press release to the BSE on 20th May 2013 says they had bought 16,188 shares till then. Till date they would probably have bought around 9.5 lakh shares or may be less, including the 8.9 lakh shares bought on 10th June from Rakesh Jhunjhunwalla & fly. So they have 6.5 lakh ahares that they can still buy .
MY POINT IS ACTUALLY THIS - that the company should be in the market daily buying quantities on offer around Rs 70/- bucks. So shareholders will get a chance to exit at a similar rate. It is not fair that shareholders had to sell at Rs 58-59 yesterday & Rs 62 today (weighted avg).


Amit Bagaria

In Reply to Bosco Menezes 4 years ago

This clearly shows that the buy back was only designed to give exit to Rakesh Jhunjhunwala. Otherwise, he would not have been to sell his position of 10% in the company. Its all a farce to give exit to big investors at the cost of company. Otherwise, what is the explanation of doing buy back at the first place !!!

Bosco Menezes

In Reply to Amit Bagaria 4 years ago

I too suspect the same, Amit (that the buyback might have been designed to enable RJ to exit).
Be that as it may, management of Zen Tech should have been extra vigilant in the next few days to make sure that follow-up selling from retailers was picked up at around the same level. This would have been the FAIR thing to do.
Unfortunately, they didn't do that & retail investors have sold at wtd avg prices of 66, 65, 59 & 62 respectively the next 4 days.

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