Nifty yet to show its hand though the trend is mildly down
Most of the Asian indices had negative opening while the others opened flat after the US reported first quarter of negative GDP growth (-0.1% quarter-on-quarter at an annualized rate). The indices back home opened in the negative. The Sensex opened at 19,987 while the Nifty opened at 6,046. Both the indices immediately hit their respective highs of the day and started a small downward trend. Yesterday, we mentioned that indices await fresh cues and only a sharp fall below 6,020 will push the Nifty towards 5,950 while a close above 6,100 will mean a continuation of the creeping bull market. The NSE saw an advance decline ratio of 704:777 and a volume of 99.99 crore shares today.
The US Federal Reserve on Wednesday maintained its monthly $85 billion bond-buying stimulus plan, saying economic growth had stalled but indicating the pullback was likely temporary. The Fed repeated that it would keep overnight rates near zero until the unemployment rate hits 6.5%, as long as inflation does not threaten to exceed 2.5%.
The Sensex hit a high of 20,009 while the Nifty manage to hit 6,058. Market was unable to move higher except for a minor pull up when ICICI Bank came up with a forecast beating result. The Indian Government today revised the economic growth for fiscal 2011-12 to 6.2% from the earlier estimate of 6.5%.
With the expiry of the F&O contracts, the indices faced selling pressures and in the last hour of the trading session the Sensex hit a 10 day low (including today) of 19,866 while the Nifty hit a four day low (including today) of 6,025. Soon after, the indices closed marginally above its respective day’s low. The Sensex closed at 19,895 (fell 110 points, 0.55%) while the Nifty closed at 6,035 (fell 21 points, 0.35%).
The Asian indices had a mixed performance. While the major gainer were Nikkei 225 and Taiwan Weighted, where both rose 0.22%, the Hang Seng fell the most, 0.39%. Both the European markets and US Futures were trading in the red.
Tomorrow Markit Economics will unveil HSBC India Manufacturing PMI, which gauges the business activity of India's factories, for January 2013.
The BSE Mid-cap index rose 0.54% while the BSE Small-cap index fell 0.11%.
The top sectoral gainers were BSE Realty (up 1.38%); BSE PSU (up 1.02%); BSE Consumer Durables and BSE FMCG (up 0.61% each) and BSE Power (up 0.46%). The main losers were BSE Bankex and BSE Oil & Gas (fell 0.42% each); BSE IT (fell 0.26%); BSE TECk (fell 0.23%) and BSE Capital Goods (fell 0.16%).
Eleven of the 30 stocks on the Sensex closed in the positive. The chief gainers were BHEL (up 2.36%); Sun Pharma (up 1.33%); Hero MotoCorp (up 1.31%); ITC (up 1.25%) and GAIL (up 1.03%). The key losers were Tata Power (fell 2.18%); ICICI Bank (fell 1.93%); HDFC Bank (fell 1.87%); Bharti Airtel (fell 1.52%) and Reliance Industries (fell 1.39%).
The top two A Group gainers on the BSE were—Suzlon Energy (up 15.57%) and Essar Oil (up 13.30%).
The top two A Group losers on the BSE were—Colgate Palmolive (fell 2.43%) and National Aluminium (fell 2.37%).
The top two B Group gainers on the BSE were—Murli Industries (up 15.10%) and Panacea Biotec (up 13.28%).
The top two B Group losers on the BSE were— Midfield Industries (fell 14.09%) and Riba Textiles (fell 12.54%).
Out of the 50 stocks listed on the Nifty, 25 stocks settled in the positive. The major gainers were Punjab National Bank (up 10.24%); Bank of Baroda (up 4.11%); BHEL (up 3.16%); DLF (up 2.60%) and GAIL (up 1.75%). The chief losers were Tata Power (fell 2.37%); HDFC Bank (fell 2.08%); Bharti Airtel (fell 2.06%); ICICI Bank (fell 1.93%) and Hindustan Unilever (fell 1.52%).
DLF has entered into definitive Business Transfer Agreement with BLP Vayu (Project 1) Pvt. Ltd., a subsidiary of Bharat Light & Power Pvt. Ltd. for transferring of its undertaking comprising of 150 MW capacity wind turbines situated at Kutch, Gujarat on ‘as is where is basis’ by way of slump-sale for a lump sum consideration of Rs282.30 crore. The transaction is in line with the DLF's objective of divesting its non core assets. DLF rose 1.87% to close at Rs277.80 on the BSE.
The Cabinet today approved the Rs200-crore revival package for ailing public sector unit, Scooters India. After the government shelved the plan to sell out its entire stake in SIL, the Department of Heavy Industry had proposed a revival package of more than Rs200 crore for revival of the company. Besides, the department had consulted the Board for Reconstruction of Public Sector Enterprises, which examined the case, and later suggested a revival package for the sick unit. Scooters India rose 4.88% to close at Rs36.55 on the BSE.
Principal of Delhi's Aditi Mahavidyalaya was fined Rs5,000 for delay in complying orders of the CIC to display information as mandated under Section 4 of the RTI Act. This is the 31st in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application
Taking a serious note of delay in complying with its order, the Central Information Commission (CIC), levied a penalty of Rs5,000 on a Principal of a college. While giving this important judgement, Shailesh Gandhi, former Central Information Commissioner asked the Chairman of governing body of the college to recover the amount from the salary of the Principal.
“As per the provisions of Section 20 (1) of the Right to Information (RTI) Act 2005, the Commission finds this as a fit case for levying penalty on the Dr Kalpana Bhrara, Principal. Since there has been a delay in complying with the order of the Commission, the Commission is passing an order to levy a penalty of Rs5,000,” the CIC said in its order issued on 24 November 2009.
Delhi resident Rajeel Lala, on 12 November 2009, filed a complaint about Aditi Mahavidyalaya and alleged that the College has not displayed the information as required under Section 4 of the RTI Act. The Commission had sent a demi-official letter on 28 May 2009 to remind the Principal regarding this obligation under Section 4 of the RTI Act.
The Commission again sent reminder letters in this regard to the College on 12 August 2009. In this letter it was stated that if Section 4 of the RTI Act remained un-implemented, the Commission would be constrained to use the powers under the RTI Act and initiate proceedings against erring institutions.
The Commission after perusing the website of the College, found that it had not met its obligations with regard to suo moto disclosures under Section 4 and in view of its repeated violation of the law and refusal to pro-actively disclose the details as per Section 4 of the RTI Act, decided to institute an enquiry under Section 18 (2) of the Act. The CIC then issued a show cause notice to the Principal.
During a hearing on 24 November 2009, the Principal, in a letter stated that some part of Section-4 is to be hosted on the website and that the Section-4 compliance will be put up on the website in the next three months.
According to observation of the Commission on 23 November 2009 on the website of the college the following had been found:
1. No link for RTI
2. Name and contact details of PIO is not given
3. No contact detail provided in the directory
4. No info about budget is provided
5. Updation has not been done for a long period
During the hearing, the respondent brought a hard copy of the manuals for Section 4, which again did not give any details on the budget of the College.
Mr Gandhi said, in spite of repeated reminders, the College does not appear to be willing to meet the Section-4 requirements of the RTI Act. He then imposed a fine of Rs5,000 on the Principal while asking her to fully comply with direction of Section 4 before 30 December 2009 and sent a compliance report.
CENTRAL INFORMATION COMMISSION
Decision No. CIC/SG/C/2009/001566/5669Penalty-1
Complaint No. CIC/SG/C/2009/001566
Complainant : Rajeev Lala,
JNU, New Delhi- 110067
Respondent : Dr Kalpana Bhrara
According to Credit Suisse, Indian consumers are more worried and more people expect lower salary increases and personal finances to worsen, making it a bad time for large-ticket purchases
Just when the Reserve Bank of India (RBI) cut interest rate in order to boost consumer sentiment and revive spending, it would seem that consumer optimism is going in the same direction—down, says Credit Suisse, based on a consumer survey. This shows the clear disconnect between policy makers and the actual realities on ground. Further more, confidence in government and consumers’ expectations of inflation is declining already.
According to the report, Arnab Mitra, vice president Credit Suisse Equity Research, consumers are clearly more worried and more people expect lower salary increases and personal finances to worsen, making it a bad time for large-ticket purchases this time around as compared to last year. The survey showed that only 30% respondents saw marginal salary hikes in 2012. On the other hand, income of 20% declined in 2012. Consequently, fewer people felt this was a good time to make major purchase (the numbers fell from 73% in 2010 to 66% in 2011 and 59% in 2012.
Consumers remained extremely risk-averse and keenness to invest in stock markets remained low with just 4% respondents trading stock markets. Preference towards gold and insurance was increasing while bank account savings remained steady, it said.
With falling optimism and uncertainty about future, domestic consumers are now saving more with the percentage of income saved increasing from 28 in 2011 to 32 in 2012, while cutting down on spending.
The most notable changes in the overall spending trend are an increase in food spending and reductions in both education and housing spending, Mitra said.
The survey points out that although mobile penetration went up, only a few people bought smart phones and more now want to buy an entry-level car.
Survey said spending patterns show a significant divergence across rural and urban markets. The downward trend in consumer optimism is likely to continue this year due to adverse macro conditions, high inflation and slower growth in the domestic economy, finds Credit Suisse. "The decline in consumer optimism observed in 2011 further intensified last year, owing to continued adverse macro conditions, high inflation and slower growth in the domestic economy. Going by the initial trends, it is unlikely to witness any major shift this year as well," Credit Suisse India Consumer Survey 2013 said.
During testing times, consumers will always be on the backfoot, unless there is a trend that the economy is indeed reviving. However, nothing of that sort has happened yet. Both global and the domestic economy continues to be uncertain. The high inflation, even though it has been trending down, is still a cause for worry to most consumers as it has not yet translated to lower spending, at least not yet. This prompted many consumers to hold off purchases. "There are instances of consumers delaying buying decisions as they cut down on lavish spending because of the economic uncertainty. While two years ago, Indians were confident about their personal finances, past two years have seen a significant deterioration with the survey respondents expecting their personal finances to get worse, rising from 3% in 2010 to 11% in 2012," the
This trend is reflected in the commentary of many companies who operate in discretionary consumption categories and are indicating a slowdown in growth rates, it said. Usually, an upbeat economy or at least economic revival would imply higher salaries, higher optimism, higher consumer spend and so forth. But the most important part is when consumers earn more, which clearly isn’t happening at the moment, despite optimism from investment managers and policy makers that economy is reviving.