Nifty to keep itself above the day’s low; this may help it to keep trending higher
We had mentioned last week that the BSE 30-share Sensex and NSE 50-share Nifty will head higher and may keep hitting new all-time highs. On Monday both the indices opened close to Thursday’s high and remained at that level 2.15 pm after which it gained strength and edged higher where it hit the new high and closed near the day’s high.
Sensex opened at 22,645 while the Nifty opened at 6,789. Sensex hit a low of 22,637 and moved up to hit a high of 22,796 and closed at 22,765 (up 136 points or 0.60%) while the Nifty moved to the level of 6,825 after hitting a low of 6,787 and closed at 6,818 (up 38 points or 0.56%). The NSE recorded a volume of 72.11 crore shares.
The top five gainers among the other indices on the NSE are PSU Bank (2.64%), Infra (2.25%), Metal (2.21%), Auto (1.40%) and Bank Nifty (1.34%). The only four loser were IT (0.64%), Realty (0.31%), FMCG (0.30%) and Pharma (0.27%).
Of the 50 stocks on the Nifty, 28 ended in the green. The top five gainers were L T (4.14%), Sesa Sterlite (3.66%), Mahindra & Mahindra (3.63%), PNB (3.26%) and Bharti Airtel (3.18%). The top five losers were Wipro (6.97%), Hindustan Unilever (2.04%), Cairn (1.75%), DLF (1.35%) and Power Grid (1.12%).
Of the 1,544 companies on the NSE, 1,021 companies closed in the green, 451 closed in the red while 72 closed flat.
Reliance Industries came out with weak turnover growth and marginal growth in net profit for the March 2014 quarter in relation to March 2013 quarter. The stock was among the gainers in Sensex 30 stocks.
Sesa Sterlite was the top gainer in the Sensex 30 stocks after the Supreme Court on Monday allowed mining in the top iron ore exporting Goa state with an upper limit of 20 million tonne per year. The court also asked the state government to constitute an expert panel and submit a report regarding capping of output and other issues within six months.
Wipro was the top loser in the Sensex pack and also Group ‘A’ on the BSE. It has forecasted 0.3% decline to a growth of 2.02% in revenue from IT Services business at between $1.715 billion to $1.755 billion in Q1 June 2014 over Q4 March 2014.
According to news in the media JSW Steel has begun talks to purchase Welspun Maxsteel for about Rs1,000 crore. This move will enable securing continuous supply of cheaper raw material. The stock was among the top three gainers in ‘A’ group on the BSE.
Among the Asian indices KLSE Composite (0.55%) was the top gainer while Shanghai Composite (1.52%) was the top loser.
Japan's trade deficit widened to 1.45 trillion yen ($14.1 billion) in March, from 802.5 billion yen the previous month, the Ministry of Finance said today, 21 April 2014.
European indices were trading in the green and US Futures were trading higher.
Workers on rolls of all mining firms will be paid 50% of the wage during the period for which they were out of work due to the stay on mining activity by the apex court
The Supreme Court on Monday while setting an annual cap of 20 million tonnes (mt) per annum allowed Goa to extract iron ore from the state. Iron ore mining was banned in Goa by the apex court for nearly one-and-a-half years.
A Bench comprising justices AK Patnaik, SS Nijjar and FMI Kalifulla, however, said the expert panel will give final a recommendation on annual cap on excavation of iron ore within six months.
It said there cannot be a deemed renewal of lease after 2007 of the existing lease deeds emanating from 1962 onwards.
It also said there will be no grant of lease for mining around one km of national parks and wild life sanctuaries.
The court directed the Ministry of Environment and Forests (MoEF) to identify eco-sensitive areas around national parks within six months.
It said the Goa government will formulate a scheme within six months for utilising the funds generated by e-auction.
The Bench said that the workers on rolls of all mining firms will be paid 50% of the wage during the period for which they were out of work because of the apex court stay on the mining activity.
Further, within six months, the expert panel will recommend how the extracted dumps are to be utilised, it said.
On 27th March, the Bench had reserved its order on putting the annual cap on volume of iron ore to be extracted in Goa.
The Bench had said it cannot go into the policy matter and will only address the regulatory aspect involved in it.
The expert panel had recommended to Goa government to form a mining corporation or a public sector company in view of “illegalities” by private miners.
Madras Stock Exchange, one of India's oldest exchanges, may close down because of low net worth and inability to have the right systems. A board meeting is scheduled for the 28th April to discuss its future
Madras Stock Exchange (MSE), the first stock exchange from South India, is likely to cease to exist following its failure to tie up with National Securities Clearing Corporation Ltd (NSCCL) and inability to raise a minimum net worth of Rs100 crore. The Exchange has called for suggestions and views from its stakeholders and would discuss ‘exit’ and other options in its board meeting on 28 April 2014.
Members of the governing board of MSE were categorically told by UK Sinha, chairman of Securities Exchange Board of India (SEBI) that regional stock exchanges (RSEs) would not be able to withstand the vagaries of new challenging environment and would only collapse. RSEs would be unable to match the demands like huge investments on IT, resources and product differentiation and liquidity, the SEBI chairman had said.
SEBI made its intentions clear through a communication on 12 March 2014. It states, “…the approval for the platform was not possible mainly on account of not having a proper agreement with the clearing corporation, not having a requisite standalone online surveillance system, which could monitor position prices and volumes on real and not having sufficient net-worth nor having concrete plan to enhance the net worth as required under Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 (SECC).”
As per the exit circular issued by SEBI on 30 May 2012, MSE was expected to set up a platform and generate an annual turnover of Rs1,000 crore before 30 May 2014. MSE was way behind the requirements and was told by Sinha to take a quick decision to opt for exit without losing further time.
Speaking about the issue of in-principal approval for MSE with the clearing corporation, the SEBI chairman told the representatives of the Exchange that the main exchange providing clearing support should also need to guarantee default water fall of a high order and hence the same might not come through in the near future.
The representatives of MSE, then had a meeting with Rajiv Agrawal, the whole time member of SEBI, regarding non-operational exchanges, which had not submitted their exit applications. During the meeting, MSE sought an extension for commencement of platform, simplified procedure for entering into tie up with a clearing corporation and a centralised surveillance mechanism for all the exchanges managed by independent government agency.
However, Agrawal reiterated the stand that regional exchanges, including MSE, should decide early to take the exit route to enjoy lenient charges lest SEBI could take measures, which might go against the interest of such exchanges.
The governing board of MSE had called for an interactive session with its stakeholders on 10th April. Majority of views and opinions during the interactions were...
1. SEBI's mandate of minimum net worth of Rs100 crore has been envisaged, so that, continuous up gradation of technology could be made possible, that not being the case for MSE, it would not be sustainable to meet with regulatory requirements.
2. Legal course would further antagonize the regulators and might affect the final contribution to SEBI besides hurting the relations with SEBI.
3. The merger proposals the fellow RSEs taken up aggressively with Bangalore and later on with Delhi and Pune exchanges did not yield any material results even after taking all steps necessary in that direction.
4. Formation of the new Government would take some time and even then the Conditions of RSEs might not garner any interest for the new Government in the immediate present unless there is a political push.
5. Even then, without a sound business model in a competitive environment there was no guarantee for improvement of business of Exchange, even after spending crores of rupees on technology and other things.
6. Hence, by applying before the due date, if MSE could garner some benefit of lesser regulatory fee etc., MSE should consider availing the same without further delay.
7. It would be a fitness of things that MSE take right steps to apply for the exit.
8. The management should take all steps to cut down cost and apply
While speaking with shareholders, Justice KP Sivasubramanian (retd.), the public interest director of MSE, ruled out the possibility of taking any legal course as he felt it would be a futile exercise with time lag and unwanted expenditure without any fruitful benefits whatsoever to the MSE and the courts would give its ruling purely based on the prevailing rules and regulations.