Sensex, Nifty oversold – Tuesday closing report

The recent decline has been on low volumes. But the Nifty may rally only, if it is able to sustain above 7,930.


The Indian stock market opened Tuesday weak after three days of holidays. At the beginning of the session, benchmark indices made an effort of to reach their previous closing level but failed after few attempts.

The S&P BSE Sensex opened at 26,488 while NSE’s CNX Nifty opened at 7,898. The benchmarks hit their high at the beginning of the session at 26,570 and 7,943, respectively. After hitting, the day’s low at 26,250 and 7,843, both the Sensex and Nifty closed near that level. Sensex closed at 26,272 (down 296 points or 1.11%), while Nifty closed at 7,852 (down 93 points or 1.17%). Both the indices closed at its lowest since 14 August 2014.  NSE recorded a volume of 76.91 crore shares. India VIX rose 11.25% to close at 14.4625.

In the twice-a-year South Asia Economic Focus, the World Bank said that India's economy will expand by a real 6% in 2015 and by 6.4% in 2016 compared to 5.4% this year, potentially making it the second fastest growing region in the world after East Asia and the Pacific. The Indian economy, 80% of the region's output, is set to grow by 6.4% in fiscal year (FY) 2015/16 after 5.6% in FY2014/15, the World Bank said. India is benefiting from a "Modi dividend", the World Bank report said, with economic activity buoyed by expectations from the newly elected government of Prime Minister Narendra Modi.

The CII Business Confidence Index (CII-BCI) for July-Sept quarter of FY15 shot up to 57.4, up from 53.7 in April-June quarter and 49.9 in Jan-March quarter. During the same quarter last fiscal, the index had touched the all-time low value of 45.7. The result of the 88th Business Outlook Survey based on responses from over 150 industry members was declared on Monday.

Growth in services activity picked up pace in September as order books filled up at a faster rate, a business survey showed on Tuesday. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, rose to 51.6 in September from 50.6 in August, reversing a slowdown seen in the previous two months. The new business sub-index climbed to 52.4 from 51.9, signalling robust demand. India's annual consumer price inflation eased in August to 7.80% from 7.96% in July. Wholesale prices also rose at a slower clip during that month.

NTPC (1.19%) was the top gainer in the Sensex 30 pack. A Memorandum of Understanding has been entered on 1 October 2014 amongst the Ministry of New and Renewable Energy, National Institute of Wind Energy and consortium of partners consisting of NTPC (as lead partner), Power Grid Corp, Power Finance Corp, Indian Renewable Energy Development Agency, PTC India and Gujarat Power Corp. All the partners would undertake development of offshore wind power projects and its evacuation and integration into the grid though a joint venture company.

Hindalco (4.35%) was the top loser in the Sensex-30 stock. In response to the news item regarding cancellation of approval of SEZ of the company's aluminium projects in Orissa, Hindalco clarified that that the company had initiated setting up of two Aluminium Projects under SEZ Scheme but later it was observed that establishing the projects under domestic tariff area was more attractive for the company. Accordingly, it has decided to exit from the SEZ Scheme and established the projects under DTA.

GMR Infrastructure (11.24%) was the top gainer in ‘A’ group on the BSE. The first 685 MW unit of GMR Chhattisgarh Energy Limited’s (GCEL) 1370 MW supercritical coal-based thermal power plant at Raikheda in Chhattisgarh’s Raipur District has successfully achieved synchronisation with the grid on 2nd October, 2014. GCEL is the GMR Group’s first supercritical coal-based thermal power plant.

Den Networks (8.54%) was the top loser in ‘A’ group on the BSE. The stock closed at its lowest since 5 March 2014 today. It continued to fall for the second day today after its CEO, SN Sharma, resigned due to personal reasons with immediate effect.

US indices closed in the red on Monday. Employers added a higher-than-expected 248,000 workers to their payrolls in September, pushing the jobless rate down to 5.9%, the lowest level since July 2008, according to Labour Department data on Friday. The US Federal Reserve will release minutes of its September 16-17 meeting on 8 October 2014.

Asian indices showed mixed performance. Of the indices which were trading today, Jakarta Composite (0.65%) was the top gainer while Nikkei 225 (0.67%) was the top loser.    

The Bank of Japan today kept its policy unchanged as widely expected.

European indices were trading in the red while US Futures were trading lower.

The latest data showed that industrial output in Germany declined sharply in August, marking the second consecutive day of rough economic numbers for Europe's largest economy. In adjusted terms, factory output was down 4% in August. Meanwhile, July's figure was downwardly revised to growth of 1.6% from the 1.9% gain originally reported.


Karnataka HC rejects Jayalalithaa's bail plea

Even after the prosecution said it has no objection to granting conditional bail, the High Court rejected the bail plea of Jayalalithaa


The Karnataka High Court on Tuesday rejected a bail plea by Tamil Nadu's former chief minister J Jayalalithaa. The AIADMK supremo was last month sentenced to a four years in jail, along with Rs100 crore penalty in the 18-year-old corruption case.


The HC decision came even after the prosecution said it has no objection to granting conditional bail.


The bail plea, which was filed by senior lawyer Ram Jethmalani on behalf of the AIADMK chief, was made on medical grounds as the former chief minister has claimed to be acutely diabetic. Her lawyer said that she is also suffering from blood pressure and heart-related ailments.


Jethmalani argued that former Bihar chief minister Lalu Prasad Yadav, too, had been released on bail by the Supreme Court after being convicted in the fodder scam.


The Special Public Prosecutor Bhavani Singh argued Jayalalithaa is an influential person who, if granted bail, may try to escape from conviction to which Jethmalani responded that Jayalalithaa is a law abiding citizen and would not flee the country.



Rangarao Ds

2 years ago

Hats off to Karnataka High Court for refusing bail to Jayalalitha. By any stretch of imagination, one doesn't need so much of gold, money or property as amassed by Jayalalitha and her cronies, even if it is for more than a comfortable living and even if for their next two generations. Now, look at the list of her ailments: Acute Diabetes Mellitus, Hyper Tension, Cardiac problems, Obesity, etc. The first one itself is enough to restrain her from spending any worthwhile money on her food. All other ailments follow as guests of the first one. She doesn't have a family so to be called. She cannot take a penny out of it on her final journey. Then what for she did hoard so much of unaccounted wealth? Time that all those who, while in power and position, indulge in massive corruption learn their lessons and avoid ignominy and misery (of course, unless they are shameless and incorrigible) like that of the "Amma" (of all corruptions?) of Tamil Nadu.


2 years ago

how can anyone convicted of a crime be described as "a law-abiding citizen"?

How exactly is ‘Top Secret’, ‘Secret’, ‘Confidential’ and ‘Restricted’ defined?

The department of defence production has just announced it publicly while the Ministry of Home Affairs keeps the classification secret


For a clear vision, both eyes need to look at same direction. If this is not the case then the condition is called as cross-eyes or strabismus. Unfortunately, various ministries and departments of the Indian government are showing off this same condition. According to information procured under the Right to Information (RTI) Act, the Ministry of Home Affairs (MHA) keeps record classification criteria secret, while Department of Defence Production (DDP) advertises it publicly!


Venkatesh Nayak from the National Campaign for Peoples' Right to Information (NCPRI), says, "Since past several years, the MHA has stubbornly refused to disclose the criteria for marking official records 'Top Secret', 'Secret' and 'Confidential'. I demanded publication of the secretive Manual of Departmental Security Instructions (MoDSI), which contains the classification criteria and procedures under the RTI Act a few years ago and failed in my efforts. Even the Central Information Commission refused to order its disclosure despite hearing strong arguments based on legal concepts and international practices in support of disclosure."


"However," he said, "the Department of Defence Production (DDP) of the Ministry of Defence has laid down the criteria for and procedure for classifying records as 'Top Secret', 'Secret' and 'Confidential' in a manual publicised in June this year for- believe it or not - private sector companies and firms that obtain licenses for producing defence-related commodities. Readers may access the Security Manual for Licensed Defence Industries, on the DDP website.


The criteria for classifying sensitive documents of private companies engaged in defence production according to the manual are given below:


TOP SECRET” shall be applied to information and equipment, the unauthorised disclosure of which could be expected to cause exceptionally grave damage to the National Security or national Interest. This category is reserved for the nation’s closest SECRETs and is to be used with great reserve.


SECRET” shall be applied to information and equipment, the unauthorized disclosure of which could be expected to cause serious damage to the National Security or National Interests or cause serious embarrassment to the Government in its functioning. This classification should be used for highly important matters and is the highest classification normally used.


CONFIDENTIAL” shall be applied to information and equipment, the unauthorised disclosure of which could be expected to cause damage to National Security or could be prejudicial to the National Interests or would embarrass the Government in its functioning.


RESTRICTED” shall be applied to information and equipment which is essentially meant for official use only and which should not be published or communicated, to anyone except for official purpose.


Nayak said, "While arguing my case, before the CIC in 2009, I had pointed out that rules and regulations themselves cannot be kept secret. The CIC in its wisdom did not buy that argument. However, the MoD thinks differently and that should be welcomed. I had also pointed out last year that a chapter on classification procedures and criteria is published online in the Manual of Office Procedure of the Andaman and Nicobar Administration which is a division in the Home Ministry. This was the first instance of making the criteria for classifying official documents public. The DDP's disclosure is the second in this line of proactive disclosure. The Home Ministry has little reason to keep the original Manual secret."


In 2001, the Atal Bihari Vajpayee-led National Democratic Alliance (NDA) government lifted curbs on private sector participation in defence production. Since then the limit on foreign investments, including foreign direct investment (FDI) and foreign institutional investment (FII) and foreign portfolio investment has been reduced bit by bit. At present, private companies can manufacture almost any kind of defence equipment in India ranging from battle tanks to aircrafts and their component parts as well as spare parts. Therefore, it is obvious that such private companies will be required to generate, or hold, a range of information whose public disclosure would be harmful to the defence and security interests of the country. This lead to creation of DDP's Manual containing instructions for classifying documents and also ensuring the safety of equipment and manufacturing or assembly premises.


Nayak said, "The wheel has turned a full circle since 2009 when the CIC bought the government's argument that if the MoDSI used in government offices is disclosed under RTI, it will fall into the hands of terrorists- an argument that the CIC bought hook, line and s(t)inker and rejected my appeal for disclosure. I wonder if the MHA, which was the party to my case still thinks that the Security Manual will also be used by terrorists as it is accessible online to any person sitting in any corner of the planet."


According to the DDP's website, the Department of Industrial Policy and Promotion (DIPP) has issued 222 Letters of Intent or Industrial licenses to private companies. Of these 46 companies are reported to have commenced production as of August 2014 (see details on DDP's website. The DIPP has disclosed names and contact details of a range of companies that have been licensed to start production in various sectors of the economy including the defence sector.


Although DIPP has made this disclosure to comply with its proactive disclosure obligation under Section 4(1)(b)(xiii) of the RTI Act the extent and quality of disclosure leaves much to be desired, feels Nayak. In some cases, the total amount of investment approved is not known, in others the number of persons employed is not known. Perhaps readers might like to hunt for these details on MCA21 website if the private entity is registered as a company in India. All companies bringing in FDI must be registered in India according to the FDI policy relating to defence production. The DIPP must disclose similar details of all licensee companies immediately, to comply with the promise of increased transparency made by the NDA Government, he added.



Veeresh Malik

2 years ago

It would be good also if the NCPRI and it's allies the ISI also followed as much transparency at they demand of the Indian Government?

National Campaign for Peoples' Right to Information (NCPRI)

Indian Social Institute (ISI)

NGOs typically have more lack of transparency than they choose to admit and with all due respect, Nayak's NGOs need to open up some more, too.

As for the definitions of TOP SECRET and downwards, yes, they work like Non Dislcosure Agreements or similar. Fair enough, and why not?

J Thomas

2 years ago

In the US of A, private companies and universities often work on classified projects. Employees working on such projects are required to obtain security clearance just like govt officials. We need to establish a similar system in India.

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