Stocks
Sensex, Nifty readying for the next upmove: Wednesday closing report

Only a close below 6,480 on the Nifty will create a short-term bearishness

Among all the Asian indices, only the Indian indices ended in the green after a very volatile session. Although the benchmark was in the red minutes after opening, soon they recovered and traded mostly in the green for the rest of the session.

 

The Sensex opened at 21,793 and moved in the range of 21,768 and 21,966 and closed at 21,856 (up 30 points or 0.14%) while the Nifty opened at 6,498 and moved between 6,487 and 6,546 and closed at 6,517 (up 5 points or 0.08%). The NSE recorded a lower volume of 63.67 crore shares.

 

Among the other indices on the NSE, the top five gainers were Media (1.87%); FMCG (1.32%); Pharma (1.30%); Consumption (0.55%) and IT (0.50%) while the top five losers were PSU Bank (1.69%); PSE (0.84%); Infra (0.70%); Commodities (0.65%) and Auto (0.63%).

 

Of the 50 stocks on the Nifty, 19 ended in the green. The top five gainers were Sun Pharma (4.46%); Asian Paints (2.99%); ITC (2.32%); Hero MotoCorp (2.26%) and Coal India (1.94%). The top five losers were BHEL (2.77%); Tata Motors (2.37%); Hindalco (2.21%); PNB (2.15%) and IDFC (1.90%).

 

Of the 1,543 companies on the NSE, 665 closed in the green, 785 closed in the red while 93 closed flat.

 

Market awaited the industrial production data for January 2014 and inflation based on the combined consumer price index (CPI) for urban and rural India for February 2014 after market hours on Wednesday.

 

The Reserve Bank of India on Tuesday, 11 March 2014, said it will conduct a 21-day term repo variable rate auction for a notified amount of Rs50,000 crore on Friday, 14 March 2014, so as to address the anticipated tightening in liquidity conditions in the banking system on account of advance tax payments by corporates commencing mid-March 2014 and with a view to providing flexibility to the banking system in its liquidity management towards March-end 2014. The reversal will be on 4 April 2014, the central bank said. The auction will be conducted as per the revised guidelines issued on 13 February 2014, the RBI said.

 

US indices closed in then negative on Tuesday. The Labor Department said Tuesday that employers posted 3.9 million job openings in January, up 1.5% from December, a sign that hiring should remain steady in coming months. However, the increase fell short of what the market was expecting.

 

US wholesale inventories rose in January while wholesale sales fell, the Commerce Department reported on Tuesday. According to the National Federation of Independent Business, its small-business index dropped by more than expected, on concerns over sales, the economy and employment driving the downturn. All the Asian indices closed in the red. Nikkei 225 (2.59%) was the top loser. European indices were trading lower while US Futures too were trading marginally in the red.

 

The recovery in developed economies is on track although slowing activity in big emerging markets means global growth will be only moderate at best in the near term, the OECD said on Tuesday. They also said that exceptionally bad winter weather in North America and a sales tax hike in Japan are also disrupting the pace of recovery. Against that backdrop, the OECD urged the European Central Bank and the Bank of Japan to keep up their monetary stimulus, if not increase it, while it said the US Federal Reserve was right to begin winding down its bond-buying programme.

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Insider trading in AstraZeneca Pharma?

One day before AstraZeneca Pharma announced delisting, its volumes spurted and share prices shot up by 9.13%. Could it be a case of insider trading?

On 3rd March AstraZeneca Pharma India Ltd, (AZ India) announced that its promoters AstraZeneca Pharmaceuticals AB (AZP AB) Sweden, will delist its shares. Because of this announcement, the share price shot up. But why was there a sudden increase in its turnover one day before the delisting announcement?

 

The sudden unusual rise in its turnover during three trading days seems fishy. The stock rose by Rs77.75 a day before its public announcement and just the day after, it fell by Rs107.40. Take a look at the following data:
 

The AstraZeneca Pharma India Prices on BSE

Date

Open
Price

High

Price

Low

Price

Close

Price

Close-Open

Total Turnover

28/2/2014

848

955

845

925.75

77.75

11,94,52,439

03/3/2014

1,110.90

1,110.90

1,110.90

1,110.90

0

97,50,369

04/3/2014

1,238.00

1,285.00

1,177.60

1,238.85

0.85

30,17,22,484


On 28th February, Friday, there was significant increase in its total turnover of its shares. The stock opened at Rs848 made day high at Rs955 and closed 9.16% up at Rs925.75;

On 3 March, Monday, it opened Rs185.15 higher at Rs1,110.90 price and closed at Rs1,110.90 same as its open price because shares were locked in upper circuit. AZ India announced the delisting offer on the same day;

On 4 March 2014, just a day after announcement, AZ India opened Rs127.10 higher at Rs1,238 than its previous closing price but fell by Rs107.40 to a day low of Rs1,177.60 and closed Rs46 down at Rs1,238.85

On 5 March, board of directors of AZ India announced that it seeks additional information from its Sweden based promoter AZP AB.

The suspicious spurt in volumes and price in this company calls for an investigations by the market regulator. But then while insider trading is rife in India, SEBI rarely acts, despite having spent Rs40 odd crore in sophisticated inter-market surveillance system.

 

The regulatory filing of AZ India mentions that it received scanned letter by email from its promoters regarding its voluntary delisting offer on 1 March, Saturday. If anyone had inside information about its delisting, a day before on 28th February, he/she would have bought heavily into the counter and sold it on 4th March at a handsome profit in just two days.
 

AZP AB, the Sweden-based promoter currently holds 75% of the total paid-up share capital of its subsidiary AZ India. As on December 2013, FIIs held 15.93% in AZ India. However, As per SEBI rules on delisting, AZP AB needed to buy an additional 15 % to raise its stake to 90% to delist.
 

Moneylife earlier wrote about, The deadly delisting itch of AstraZeneca Pharma India,  explaining how AstraZeneca is on course to achieve its decade-long plan to delist its shares from the Indian bourses by hook or by crook.

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COMMENTS

SUNIL KUMAR HEMNANI

3 years ago

Yes a feature of this company has become that it should be announced. Every year or when the insiders decide they need to create a news to take up the stock.We come across such a instance , I have been a victim of such a fraud by the company in the past.This proved for me a situation wherein a very big loss had to be taken by me.

Sreepathid

3 years ago

What about L&T finance. Before the announcement by NSE that the shares will be included in F&O the share prices moved.

sathyacumaran

3 years ago

sathyacumaran
Its not the only share that is traded inside trading there are quiet alot all the inside traders are patronised by sebi nse bse they knew very well who is operation g in whcih counter and the officials get their due share in the insider trading and one fine morning they would that we are going to release about yor inside trading and some of brokers should be caught and among the brokers they would be scape goat and after this episode nobody knew what happened and as such all in conspicracy with sebi nse bse is my conclusion if the sebi nse bse wants they bring the broker to very great extent and loot the investors money similarily viceversa so without their knowledge noting is done so all their saying of insider trading is just an crocodile tears to fool the investor

sathyacumaran

3 years ago

sathyacumaran
when the share price goes up the sebi normal procedure is accuse as inside trader when they find first day itself its going up why do they keep quiet infact they would have sent feelers to company about the movement when the company had not responded properly then they would raise the issue like inside trading its all the officials of sebi nse bse who lure the brokers and company to do inside trading after this they would accuse the company and afterwards they would keep quiet and what action taken by the inside trader the comapny and broker are kept mum this shows that their due share is received so the matter is kept in cold storage how the investors case even though they have fact they would not take any action similar would be case is my surmise

Sundaram Mutual Fund appoints Sunil Subramaniam as deputy CEO

Sundaram Mutual Fund promoted Sunil Subramaniam, its director for sales and global operations as its new deputy CEO

Sundaram Mutual Fund has appointed Sunil Subramaniam as its new deputy chief executive. He was looking after sales and global operations of Sundaram MF as director.

 

Sunil joined Sundaram MF in September 2005 as vice president for retail distribution and proceeded to become an executive director for sales and marketing. Later he was promoted as director for sales and global operations.

 

Sunil holds a Masters in Chemistry from Indian Institute of Technology (IIT), Madras and MBA (open) from The Open University, London. Earlier he worked with several banks like State Bank of India, American Express Bank and Bank of America for over 20 years.

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COMMENTS

Suiketu Shah

3 years ago

Quite like these celebrity endorsements of useless products and services out to fool retail investors in the name of a celebrity.

Indian Mutual funds is like the West Indies cricket team-they were the greatest but they were in the 70's and 80's.They wl never get their glorious days back.Same with MFunds in India.The damage last 4 yrs is irrepairable.

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