Sensex, Nifty still in no man’s land: Wednesday Closing Report

The Nifty has to close above 5,840-5,855 for a fresh upmove. In case it falls sharply below 5,785 we may see a fall right up to 5,680

The market settled with minor gains amid volatile trade on nervousness ahead of the announcement from the US Fed about the future of its stimulus programme. The Nifty has to close above 5,840-5,855 for a fresh upmove. In case it falls sharply below 5,785 we may see a fall right up to 5,680. The National Stock Exchange (NSE) recorded a volume of 50.82 crore shares and advance-decline ratio of 740:644.
The domestic market opened flat tracking the Asian markets which were mostly in the red as investors await details from the two-day US FOMC meeting. US markets closed higher on Tuesday on hopes that the Federal Reserve will retain its stimulus programme till the time the employment rate goes down to 6.5%.
The Nifty opened eight points lower at 5,806 while the Sensex resumed trade at 19,224, one point up. Selling pressure in oil & gas, auto, consumer durables, PSU and capital goods stocks led the choppy market lower in the first hour of trade.
The decline saw the benchmarks touching their lows with the Nifty falling to 5,778 and the Sensex going back to 19,100. However, select buying in metal, consumer durables and realty counters at the lows saw the market picking up some momentum in late morning trade.
The benchmarks made a feeble recovery attempt in noon trade but selling pressure kept the indices lower. A struggled upmove a shortly after 2.00pm finally saw the market emerging into the green, albeit for a short while. 
Selling in blue chips like Infosys, ONGC, ICICI Bank, TCS and Tata Motors pulled the benchmarks down once more. The market received its much-needed push in the lat half hour of the trading session from the consumer durables and metals sectors, which helped the indices hit their highs. The Nifty went up to 5,828 and the Sensex rose to 19,274 at their respective highs.
The market closed near the highs with the Nifty inching nine points (0.15%) up to 5,822 and the Sensex rising 22 points (0.12%) to settle at 19,246.
Among the broader indices, the BSE Mid-cap index gained 0.53% and the BSE Small-cap segment advanced 0.50%.
The top gainers in the sectoral segment were BSE Consumer Durables (up 1.96%); BSE Metal (up 1.28%); BSE Realty (up 0.58%); BSE Oil & Gas (up 0.56%) and BSE TECk (up 0.36%). The main losers were BSE Auto (down 0.67%); BSE Power (down 0.59%); BSE PSU (down 0.35%); BSE Healthcare (down 0.29%) and BSE IT (down 0.27%).
Out of the 30 stocks on the Sensex, 15 settled higher. The top gainers were Bharti Airtel (up 2.83%); Hindalco Industries (up 2.66%); Sterlite Industries (up 2.65%); Jindal Steel & Power (up 2.52%) and Tata Steel (up 2.05%). The major losers were Tata Motors (down 1.80%); Dr Reddy’s Laboratories (down 1.53%); NTPC (down 1.39%); TCS (down 1.33%) and Hero MotoCorp (down 1.26%).
The top two A Group gainers on the BSE were—Future Retail (up 4.83%) and Idea Cellular (up 4.52%).
The top two A Group losers on the BSE were—MMTC (down 4.98%) and Indian Oil Corporation (down 3.06%).
The top two B Group gainers on the BSE were—Venus Universal (up 25%) and Scanpoint Geomatics (up 19.94%).
The top two B Group losers on the BSE were—Tijaria Polypipes (down 19.8%) and Nitta Gelatin India (down 19.39%).
Of the 50 stocks on the Nifty, 28 ended in the in the green. The main gainers were Hindalco Ind (up 3.26%); Sesa Goa (up 2.89%); Ambuja Cement (up 2.54%); Bharti Airtel (up 2.40%) and JSPL (up 2.33%). The key losers were Tata Motors (down 2.08%); Hero MotoCorp (down 1.81%); Dr Reddy’s (down 1.74%); UltraTech Cement (down 1.66%) and Tata Power (down 1.62%).
Markets in Asia settled mostly lower on uncertainty about the outcome of the US FOMC meeting. The Japanese government’s proposed moves to boost its economy also kept investors edgy.
The Shanghai Composite declined 0.73%; the Hang Seng dropped 1.13%; the Jakarta Composite declined 0.70%; the KLSE Composite shed 0.07%; the Straits Times contracted 0.49%; the Seoul Composite lost 0.65% and the Taiwan Weighted settled 0.05% lower. Bucking the trend, the Nikkei 225 surged 1.83%.
At the time of writing, the key European markets were marginally lower and the US stock futures were trading with minor gains.
Back home, foreign institutional investors were net sellers of stocks totalling Rs597.37 crore on Tuesday. On the other hand, domestic investors were net buyers of shares amounting to Rs582.65 crore.
Clariant Chemicals (India) today said it has made an investment Rs 38 crore in pigments business at its Roha site in Maharashtra. The investment has been made as a part of an initiative to help accelerate the company's business and support R&D to respond faster to local product development needs, a company statement said. The stock gained 1.28% to close at Rs427 on the NSE.
Pharma major Glenmark's US generics arm— Glenmark Generics—has received final approval from the US Food and Drug Administration to sell riluzole tablets, indicated for the treatment of sclerosis, in 50 mg strength. Based on IMS Health sales data for the 12 month period ended March 2013, riluzole, used in treating nervous system disorder, generated sales of $64 million. Glenmark fell 0.57% to close at Rs570.65 on the NSE.
Tata Coffee has inaugurated a premium coffee extraction plant at its instant coffee manufacturing facility in Theni, Tamil Nadu. The new extraction plant will help the company position its freeze dried coffee product at premium levels and increase its overall capacity by 30%. The stock declined 2.31% to close at Rs1,080.50 on the NSE.




4 years ago

This is volatile time extremely difficult to play the high beta as most of the time the stop losses get triggered.
Now to play this market is by slow and steady winning the race, they will not give daily huge moves but sure to give handsome return in few weeks time.
The high dividend yield are those. The HGS ( Hinduja Global Solutions) have announced 4th time consecutive Rs 21 per share dividend , price is hovering around 300 ( Yield is close to 7%) ,good bet to pay till record date is announced and the same nears.
One can also buy Petronet LNG the daring of advisers which has announced rs 2.50 per share dividend which is round the corner , The Praj Industries also is a good bet the dividend yield works out to close to 5% return !!!

Beauty of investing in these are , one can continue to hold these shares without any hassle for medium term also, all are paying handsome dividend year after year.

Bus fare hike sparks off massive protests in Brazil, spread by social media

Over the last few days, Brazil has been witness to its biggest, most widespread protest in two decades against the government’s fiscal priorities, deep-rooted corruption and inadequate provision of public goods

What started out as a localized protest on 2nd June in Sao Paolo against a bus fare hike from 3 real to 3.20 real has grown into the largest, most widespread protest against the Brazilian government since 1992, when the nation demanded the impeachment of president Fernando Collor de Mello. Close to 250 lakh protesters across Brazil, including Rio de Janeiro and Sao Paulo took to the streets over the last two days, protesting against widespread corruption and utterly inadequate provision of public goods such as education and healthcare.


Representatives of the government at Sao Paolo have argued that the price hike (6.67%) is well under the inflation rate of about 15%, but have agreed to a roll back of the price hike once an alternate source of revenue is identified. When the police reacted to peaceful protests in Sao Paolo with tear gas and rubber bullets, leaving over a 100 people injured, the protests began to gain phenomenal momentum through social media.


A significant part of public anger and resentment stems from the perception that Brazil’s grand plans for the FIFA World Cup in 2014 and the 2016 Olympic Games, with countless millions of dollars being spent on upgrading stadia, airports and hotels have been made at the cost of public goods provision for the common man. This is despite the fact that according to the Brazilian Tax Planning Institute’s think tank, Brazil’s tax burden in 2011 stood at a very high 36%, making it the 12th highest in the world. Some protesters are reported to have hacked into the FIFA World Cup 2014’s official website and replaced it temporarily with videos of police violence against protesters.


Deputy sports minister Luis Fernandes is reported to have said, “There is absolutely nothing contradictory between organizing a World Cup and investing in health and education.” Evidently, the citizens of Brazil beg to differ.


Yesterday, president Dilma Rousseff assured her people that their voices were being heard. “Brazil has woken up a stronger country… The size of yesterday’s marches is evidence of the strength of our democracy,” she said in a nationally televised speech.


One cannot help but notice the striking similarities between the Anna Hazare movement that India witnessed two years ago and the protests in Brazil. India was ranked 87th in Transparency International’s Corruption Perception Index in 2010, with Brazil only a few ranks above at 69th position. Like India’s anti-corruption movement, Brazil’s too has its urban, educated, middle-class youth giving the protests their momentum. Both BRICS nations have had enormous economic successes in the past decades, contributing in part to a constantly increasing educated middle-class that is aware of its rights and calls strongly for better public services.


Extensive, innovative and highly effective use of social media has been made in both countries to fan the flames of protest. Reactions to police violence against protesters have furthered incensed people into joining the protests. This was also seen a few months ago in India, when the police came down heavily on youngsters protest against the Delhi gang-rape in December 2012. Photographs on Instagram, shot by protesters on their smart phones have gone viral.


One significant difference between the two movements is that while India’s protests had a clear leader, a figurehead with a set of highly specific demands, Brazil’s protests have largely been amorphous in nature, with a general dissatisfaction with poor governance and corruption unifying the protesters. Whether this lack of direction and specificity will weaken the protesters’ stance against the government or help avoid the eventual politicization of a cause that is spearheaded by individuals remains to be seen.


Majority of the people do not wash their hands effectively after using the restroom

Hand washing is the single most effective step to reduce the spread of infectious diseases, but Mich­i­gan State Uni­vers­ity re­search­ers found that only 5% of peo­ple who used the bath­room washed their hands long enough to kill the germs that can cause in­fec­tions


Ac­cord­ing to the US Cen­tres for Dis­ease Con­trol and Pre­ven­tion, it takes 15 to 20 sec­onds of vig­or­ous hand wash­ing with soap and wa­ter to ef­fec­tively kill the germs. But yet the study which was based on the ob­serva­t­ions of 3,749 peo­ple in pub­lic restrooms showed that peo­ple were wash­ing their hands for only six sec­onds on an average. “These find­ings were sur­pris­ing to us be­cause past re­search sug­gested that prop­er hand wash­ing is oc­cur­ring at a much high­er rate,” said Carl Borch­gre­vink, the lead in­ves­ti­ga­tor. Borch­grevink and col­leagues had trained a doz­en col­lege stu­dents and made them ob­serve hand wash­ing in re­strooms at bars, restau­rants and oth­er pub­lic es­tab­lish­ments.


The study also found out that 15% of the men and 7% of the women didn’t wash their hands and among those who washed their hands, only half of the men used soap, compared to 78% of wom­en. Where there were dirty sinks, peo­ple were less likely to wash their hands and hand wash­ing was more prev­a­lent during the day. The researcher reasoned that maybe because in the evening the res­tau­rant-goers are more re­laxed. Also peo­ple were more likely to wash hands if there was a sign en­cour­ag­ing it. The study, published in the Jour­nal of En­vi­ron­men­tal Health is one of the first to take in­to ac­count fac­tors such as dura­t­ion of the hand wash­ing and wheth­er peo­ple used soap.


Borch­grevink, who worked as a chef and res­tau­rant man­ag­er be­fore be­com­ing a researcher, said that the find­ings have im­plica­t­ions for both con­sumers and restau­rant and ho­tel operators. “Imag­ine you’re a busi­ness own­er and peo­ple come to your establish­ment and get food­-borne ill­ness through the fecal-oral route —be­cause peo­ple did­n’t wash their hands—and then your reputa­t­ion is on the line,” he said. “You could lose your busi­ness.” Hand wash­ing is the sin­gle most ef­fec­tive step to re­duce the spread of in­fec­tious dis­eases, ac­cord­ing to the CDC, and fail­ing to do it prop­erly con­tri­butes to nearly half of food-­borne ill­ness out­breaks.





Ramesh Iyer

4 years ago

Seems findings mentioned in the article pertain to the US, and not to other parts of the world, least of all, India. In India, we practice better personal hygiene by bathing daily, and washing our hands with water both before & after meals, and when we return home from outdoor work etc.
There is a perception that the French, followed by the Arabs are notorious for poor hygiene standards. So, in certain aspects we are indeed better off than the 'developed' West.

nagesh kini

4 years ago

Indians are traditionally prone to more of cleaniness beginning with bathing at least once a day in the morning and before any ritual, washing legs before setting foot in doors and wash both hands more oftener.


4 years ago

Quite an eye opener I must say when it comes to US.

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