Sensex Nifty on fire: Weekly Market Report

There is no sign of a market decline currently but watch out for a reaction late Tuesday or Wednesday

The markets had a great week with BSE 30-share Sensex rising 354 points (or 1.73%) to close the week at 20882.89, while the Nifty closed at 6,189, up 93 points (or up 1.53%).


On Monday, unlike most of the Asian indices, which ended in the negative the Sensex continued to close in the positive for the fifth consecutive session. American lawmakers struggled over an accord to raise the US debt limit and restore government operations. Back home, wholesale price inflation (WPI) accelerated to a seven-month high in September 2013. WPI inflation accelerated to 6.46% in September 2013, from 6.1% in August 2013.


On Tuesday, although the Sensex hit the highest level since its previous high of 11 November 2010, it closed in the negative breaking five days of positive move. This happened among the mix of good and bad news. News of US debt deal and good results from Reliance Industries helped while the corporate India was stunned with the fact that CBI filed a first information report (FIR) against Aditya Birla group chairman Kumar Mangalam Birla, his firm Hindalco Industries Ltd and former coal secretary PC Parakh in the case related to the allotment of captive coal blocks.


On Wednesday, the market was closes on account of Bakri Id. On Thursday, in spite of the positive news from the US, where the government shutdown impasse was broken and there was a strong close in the US markets, the Indian markets fell, as investors sold shares of frontline software companies.


On Friday, the markets did a massive reversal of sorts.  They opened strongly on the back of positive news from China, and closed at lifetime weekly highs. China reported GDP growth of 7.8%, its quickest rate of the year. The US markets finished strongly on Thursday after opening poorly. Google reported good quarterly results which buoyed US markets. The S&P 500 hit a new lifetime high on Thursday.


We expect the market momentum to continue for a few days. However, the market has been rallying continuously, since early September and Sensex and Nifty are already up 20% each. Sometime around Tuesday and Wednesday, we expect the first reaction to come in. 


Among the other indices on the NSE, except for PSU Bank which ended negative all other indices either remained flat or closed with a gain. The top two gainers were Metals (3%) and Energy (3%).
Among the Nifty-50 stocks, the top five gainers were Jaiprakash Associates (18%); Bharat Petroleum (7%); Tata Steel (7%); Bharti Airtel (7%) and Sesa Sterlite (6%) while the top five losers were Tata Power (2%); GAIL (3%); Cipla (3%); IndusInd Bank (3%) and HCL Technologies (5%).
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors were:
Top ML sectors   Worst ML sectors  
Food & Beverages 5% Pharma -1%
Refineries 4% Auto components 0%
Steel 4% Shipping 0%
Telecom Services 4% Financial services 0%
Sugar 3% Auto 0%



Ex –NSEL MD Anjani Sinha blames Board members, Jignesh Shah and FT for NSEL scam

After recanting his earlier affidavit that he himself was to blame, Anjani Sinha has now blamed the Board members for the Rs5,600 crore NSEL scam

A day after his arrest, ex-managing director of scam-ridden National Spot Exchange Limited (NSEL), Anjani Sinha, has put the blame squarely on the Board NSEL, according to his latest affidavit.

This is a stunning reversal from the earlier stance in which he said that he alone was responsible for the mess. According to the latest affidavit, he signed the first one under pressure from NSEL board members.

Mr Sinha also said that he did not have the authority to take crucial decisions on NSEL matters.

Further, his affidavit mentions that the entire software of NSEL was developed by Financial Technologies (FT). FT is run by Jignesh Shah and one of the big stakeholders of NSEL. Mr Sinha also blamed the promoter-directors for lack of proper systems.

Mr Sinha also claims that he has not taken any personal benefit from borrowers. Yesterday, it was reported in The Economic Times that his wife undertook huge number of trades in MCX and made heavy losses.

However, NSEL issued a statement refuting Mr Sinha’s latest charges. It said, “The allegations made by the accused against the NSEL Board members including Mr Jignesh Shah and Mr Joseph Massey should not be taken at face value. The matter is under investigation and we cannot comment further.”



jaideep shirali

4 years ago

Only a fool would believe that Sinha is the only culprit in the NSEL mess. Every NSEL Director deserves to be blacklisted by the DCA for this level of fraud, which unlike many other cases, cannot be dismissed as just an outcome of operational decisions. This method of operations, concealment and so many other issues smacks of a warped strategy at the board level itself.

VST industries showcases a formidable increase in net profit and income

Despite an increase in expenditure, VST industries reports a 17.5% increase in net profit

VST industries, a Hyderabad based third largest cigarette manufacturing company of India,  has announced a healthy results for the quarter ending on 30 September 2013. The company reported standalone net income of Rs21,1.09 crore in the current quarter this year compared to Rs17,6.19 crore for the same period in last year.


The standalone net profit of the company for the quarter ended September 2013 rose by a formidable 17.5% to Rs3,2.45 crore this year as compared to Rs2,7.60 crore last year. The expenditure of the company including inventories of finished goods and work in progress, depreciation and amortisation costs increased from Rs138.21 crore for the second quarter last year compared to Rs165.86 crore for the same period this year.


The share price of the VST industries was down by 2.35% at Rs1495.05 while the benchmark S&P BSE closed at 20,882.89 points which was up by 2.29%.



Suiketu Shah

4 years ago

Excellent recommendation by ml and kensource.One doesnot get to read of such recommendations from so called "experts" proving how hollow they are in reality.

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