Sensex, Nifty pulled lower on rising tensions in Iraq : Friday closing report
Weakening of the Nifty may be seen in days to come

The Indian indices witnessed a range bound session until around 11.45 am on Friday when the benchmarks were trading marginally higher than yesterdays close. The indices soon made an entry in the negative zone and saw a gradual slide down, ultimately closing in the red. Rising tension in Iraq, which threatened to affect oil supplies, affected market sentiment adversely.
The S&P BSE 30-share Sensex opened at 25,677 and moved from the high of 25,688 to a low of 25,172 and closed at 25,228 (down 348 points or 1.36%). The NSE 50-share Nifty opened at 7,668 and hit a high of 7,679 and moved lower the level of 7,525 and closed at 7,542 (down 108 points or 1.41%). The NSE recorded a volume of 132.96 crore shares. India VIX rose 5.09% to close at 17.7625.
The annual inflation rate based on combined consumer price index (CPI) for urban and rural India eased to 8.28% (provisional) in May 2014, from 8.59% (final) in April 2014, as shown by data released by the government after trading hours on Thursday. Within the consumer price index, food prices inflation eased to 9.56% in May 2014, from 9.83% in April 2014. The rate of inflation based on the core CPI, which excludes food and energy prices was 7.72% in May 2014, unchanged from the level in April 2014.
Hindustan Unilever (0.71%) was the top gainer in the Sensex 30 pack. Two senior executives have quit the modern trade division of Hindustan Unilever in recent weeks.
Hero MotoCorp (4.42%) was among the top two losers among the Sensex 30 stocks. Hero MotoCorp is planning to enter Brazil by 2016. It also plans to begin work on its manufacturing facility in Columbia in the next two months, investing $70 million.
Motherson Sumi (3.07%) was among the top two gainers in the ‘A’ group on the BSE, it was in news for planning to raise funds in the overseas bond market by issue of $500 million in euro-denominated bonds.
Jaiprakash Associates (8.30%), top loser in ‘A’ group on the BSE. The company has been in news in relation to involvement in talks with Ultratech Cement for selling off Jaiprakash’s cement assets.
US indices closed in the negative on Thursday. The retail sales rose 0.3% in May, half the growth rate forecasts were indicating. Americans' new claims for unemployment benefits unexpectedly rose last week.
Asian indices showed a mixed performance. Shanghai Composite (0.93%) was the top gainer while Seoul Composite (1.03%) was the top loser.
The Bank of Japan maintained record stimulus as Governor Haruhiko Kuroda strives to boost inflation that remains short of a 2% target. The central bank will continue to expand the monetary base at a pace of 60 trillion yen to 70 trillion yen ($688 billion) per year, it said in a statement today in Tokyo in line with estimates.
European indices were trading in the red while US Futures were also trading lower.


Iraq crisis: Militants capture entire chunk of Sunni heartland

The new development is the biggest threat to Iraq’s stability since the US withdrawal at the end of 2011, and has pushed the nation closer to a precipice that would partition it into Sunni, Shiite and Kurdish zones

The Shiite-led government of Iraq’s Prime Minister Nouri al-Maliki remained in paralysis on Friday, unable to form a coherent response after al-Qaeda-inspired militants blitzed and captured an entire chunk of the nation’s Sunni heartland this week, including major cities.


This new reality is the biggest threat to Iraq’s stability since the US withdrawal at the end of 2011, and it has pushed the nation closer to a precipice that would partition it into Sunni, Shiite and Kurdish zones.


Fighters from the militant group known as the Islamic State of Iraq and the Levant on Thursday vowed to march on Baghdad, joined by Saddam Hussein-era loyalists and other disaffected Sunnis.


Trumpeting their victory, the militants also declared they would impose Shariah law in Mosul, Iraq’s second-largest city, which they captured on Tuesday among other areas they seized.


In northern Iraq, Kurdish security forces moved to fill the power vacuum — taking over an air base and other posts abandoned by the army in the ethnically mixed city of Kirkuk.


Three planeloads of Americans were being evacuated from a major Iraqi air base in Sunni territory north of Baghdad, US officials said. Germany urged its citizens to immediately leave parts of Iraq, including Baghdad.


President Barack Obama said Iraq will need more help from the US, but he did not specify what it would be willing to provide. Unnamed senior US officials said Washington is considering whether to conduct drone missions in Iraq.


The UN Security Council met to discuss the crisis, underscoring the growing international alarm over the stunning advances by the terrorist forces.


Al-Maliki had asked Parliament to declare a state of emergency that would give him and his Shiite-led government increased powers to run the country, but the lawmakers failed to assemble a quorum yesterday.


Skirmishes continued in several areas. Two communities near Tikirt — the key oil refining centre of Beiji and the city of Samarra, home to a prominent Shiite shrine — remained in government hands according to Iraqi intelligence officials.


In Saddam’s home town of Tikrit, overrun by the militants on Wednesday, witnesses said fighters raised posters of the late dictator and Izzat Ibrahim al-Douri, his former deputy who escaped the 2003 US-led invasion and has eluded security forces ever since.


Baghdad's authorities tightened security and residents stocked up on essentials. Hundreds of young men crowded in front of the main army recruiting centre in Baghdad after authorities urged Iraqis to help battle the insurgents.


Security officials said the Islamic State fighters managed to take control of two weapons depots holding 400,000 items, including AK-47 rifles, rockets and rocket-propelled grenades, artillery shells and mortars.


Court summons MLA Kshitij Thakur in the cop beating case
MLA Kshitij Thakur was summoned by Dadar's Metropolitan Magistrate Court for beating up a cop last year. The Court has asked the MLA to appear before it on 17th June  

The Metropolitan Magistrate Court at Dadar has issued a summon against Khitij Thakur, member of legislative assembly (MLA) from Nala Sopara constituency near Mumbai, for allegedely beating a police officer last year. 
Santosh Daundkar, who had filed the complaint before the Magistrate Court, pasted the summons on Thakur's home in Virar with the help of local police.
Daundkar's advocate Abha Singh said, “Since Worli Police Station did not file a case, a case was filed in the Court of Metropolitan Magistrate, Dadar, Mumbai under the provisions of Code of Criminal Procedure, 1973. Based on the evaluation of the credibility of information, the Court decided to issue process in the case. Thereafter, the accused MLA was summoned in the Court.
The initial summons could not be served for various reasons linked to red tape and also over the fact that it was reported by the police that the accused was abroad.”
MLA Thakur has been ordered to be present in the court on 17th June to hear a complaint filed by social activist Daundkar regarding the abuse and assault of Worli Traffic Branch's assistant police inspector (ASI) Sachin Suryavanshi on 19 March 2013. 
Last year on 18th March, Suryawanshi allegedly stopped Thakur's vehicle and fined him for speeding on the Rajiv Gandhi Bandra-Worli Sea Link. Next day the cop was summoned in the Assembly, where Thakur and the four other MLAs allegedly assaulted Suryawanshi.
Thakur, the Bahujan Vikas Aghadi MLA, alongwith Ram Kadam (MNS), Rajan Salvi (Shiv Sena), Pradeep Jaiswal (Independent) and Jaykumar Raval (BJP) were also suspended in the Budget Session of the state legislature last year after beating up policeman Sachin Suryawanshi in the Vidhan Bhavan premises. Later in July 2013, the state Assembly revoked the suspension. 


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