Nifty to move in a tight range
On Tuesday we had mentioned that the S&P BSE Sensex and NSE Nifty may pause for breath. Markets on Wednesday witnessed a volatile session and was indecisive for major part of the day. And they ultimately closed in the red.
Sensex opened at 24,909 while the Nifty opened at 7,418. Sensex moved in the range of 24,774 and 24,926 and closed at 24,806 (down 53 points or 0.21%) while the Nifty moved in the between 7,391 and 7,433 and closed at 7,402 (down 14 points or 0.18%). The NSE recorded a higher volume of 147.77 crore shares. India VIX fell 1.46% to close at 15.5650.
Markit Economics said on 4 June 2014, its seasonally adjusted HSBC India Composite Output index edged up to 50.7 in May from 49.5 in April to 50.7 in May, indicating growth of India's private sector output for the first time in three months. The headline HSBC Services Business Activity Index posted 50.2 in May, rising from April's reading of 48.5 and pointing to the first expansion of output in 11 months.
Fertiliser stocks will be in focus as news is making rounds that the fertiliser ministry has prepared a roadmap for rationalisation of subsidy for the sector. This roadmap will be discussed in the proposed meeting with Prime Minister Narendra Modi.
It is also being reported that Narendra Modi government could allow foreign direct investment in the e-commerce sector as early as next month, paving the way for global online retailers such as Amazon to expand their business.
The government may not implement the delayed increase in price of natural gas with retrospective effect as it would be difficult to back charge higher bills from power and CNG consumers, an official said.
SEBI on Wednesday said that state-owned firms should adhere to the mandatory 25% public shareholding norms that are applicable to private companies.
The Finance Ministry is considering a proposal to set up a National Asset Management Company that may act as a nodal agency for taking over bad loans of banks and help revive sick units.
Hero MotoCorp (3.57%), was the top gainer in the Sensex 30 pack. Hero MotoCorp sold 602,481 units of twowheelers in May 2014 - its highest-ever despatch sales for any non-festival period. The previous highest was in the preceding month, i.e., April 2014 when the company sold 571,054 units - thus highlighting HMCL's sustained volume growth since the beginning of FY'15. The sales registered in May 2014 represents a growth of 8% over the corresponding month in the previous year, when the company had sold 557,890 units.
TCS (1.92%), was the top loser among the Sensex 30 stock, was in news with reports that its chief executive received a 60% hike in salary, thereby making N Chandrasekaran the highest-paid CEO among the country's information technology companies.
Chandrasekaran earned Rs 18.7 crore for the year 2013-14, as against Rs 11.7 crore in the year-ago period, according to TCS' annual report.
IDBI Bank (15.71%), top gainer in ‘A’ group on the BSE, projects Rs 3,500 crore of capital requirement in FY15. The bank sees that it can get Rs 5,000 crore if the government divests shareholding to 58%. According to the bank the worst in terms of the asset quality is over and foresees improvement in the gross non-performing assets from June quarter onwards.
Wockhardt (3.78%) was again among the major losers today in the ‘A’ group on the BSE. The USFDA had found fault with quality control, training and staff hygiene at Wockhardt's plant in Chicago.
US indices closed marginally in the negative on Tuesday.
Except for Nikkei 225 (0.22%) all the other Asian indices trading today closed in the red. Shanghai Composite (0.66%) was the top loser.
European indices were trading in the negative. US Futures were trading marginally lower.
The Advertising Standards Council of India (ASCI) has reacted to the widespread outrage over the advertising message of fairness products, and proposed a tough new set of guidelines for advertisers
It wasn’t just Nandita Das or the “Dark is Beautiful” group that was outraged. Most people found it unsettling that fairness products are sold by showing darker skin as inferior.
If you wanted a good catch in the marriage market, a great job or to feel more confident, you needed to rub a cream into your skin to become fairer, they said. While this premise clearly sells – based on the proliferation of new products in the market – it also led to complaints. Most often, the Advertising Standards Council of India (ASCI)'s complaints committee found merit in the complaint and upheld it. The advertisements were withdrawn and a few months later, there was another, which sent out the same message.
It is another matter that India has not become a fairer nation despite millions of tubes being sold to the gullible. But the rising irritation at the tone and message of the advertising did turn on the heat.
A few months ago, ASCI set up a committee to frame new guidelines, which have been put up on its Facebook page (https://www.facebook.com/ascisocial?fref=ts ) for discussion.
The self regulatory body says, “...There is a strong concern in certain sections of society that advertising of fairness products tends to communicate and perpetuate the notion that dark skin is inferior and undesirable. Yet given how widespread the advertising for fairness and skin lightening products is and the concerns of different stakeholders in society, ASCI therefore felt a need to frame specific guidelines for this product category”.
Here are the new guidelines for advertising fairness products will say -
1. Advertising should not communicate any discrimination as a result of skin colour. These ads should not reinforce negative social stereotyping on the basis of skin colour. Specifically, advertising should not directly or implicitly show people with darker skin as unattractive, unhappy, depressed or concerned. These ads should not portray people with darker skin as at a disadvantage of any kind, or inferior, or unsuccessful in any aspect of life particularly in relation to being attractive to the opposite sex, matrimony, job placement, promotions and other prospects.
2. Advertising should not use post production visual effects on the model/s to show exaggerated product efficacy. The pre- and –post product usage visuals of model/s using special effects should not be dramatized or exaggerated so that efficacy depicted is not drastically different than what can be delivered by the product. Further, the expression of the model/s pre and post usage of the product both in the real and graphical representation should be the same.
3. Advertising should not associate darker or lighter colour skin with any particular socio-economic strata, caste, community, religion, profession or ethnicity.
4. Advertising should not perpetuate gender based discrimination because of skin colour.
On the face of it, the guidelines seem tough enough. If issued as drafted, they will make it tougher for fairness product companies to sell their stuff. However, one can only wait and see if ingenious advertising whiz kids work around the draft.
One of the earliest and most systematic protests against fairness product campaigns, now extended to men was started by Chennai-based Kavitha Emmanuel, founder-director of Women of Worth, in 2009. She launched the 'Dark is Beautiful” campaign that gained momentum last year when well-known actor Nandita Das lent her voice to it.
The outspoken actor had always lambasted India's obsession with fair skin. "I started getting tonnes of emails from young women pouring their heart out about how they were discriminated against. Some wanted to commit suicide because they couldn't be fair," she told a news agency at that time.
ASCI says its Consumer Complaints Council (CCC) continues to receive the highest number of complaints from the health and personal care category every month.
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A Pledge to Boycott all Fairness Products in India
At a Moneylife event, Debashis Basu, explained in detail all the things that a saver needs to know about how and when to invest in stocks and bonds, given the current market environment
The BSE Sensex and the NSE Nifty continue to hit their all-time highs. A majority of Indian retail investors suddenly feel left out of the market and the new bull run.
However, the question on many savers' minds is, “Is the market now too high to jump into stocks?” or “Should we wait for a 'correction'?” At a Moneylife event titled, “Achche Din for Investors?— Investing successfully in the new regime”, Debashis Basu, editor and publisher of Moneylife, explained all that a saver needs to know about how and when to invest using a methodical approach and what should one expect from the new government.
In the first part of the session, Mr Basu captivated the audience by explaining how the average saver is influenced by the ‘noise’ from the media. Mr Basu spoke about seven facts of the stock market and what an investor should consider for making wise investment decisions.
Many investors seek, and blindly follow, tips and advice that are freely available. Most do not follow due process nor have the discipline to cross-check the facts and invest with conviction. An average investor has generally no clue about what he is buying or selling.
Mr Basu explained how to pick the right stocks at the right time and exit profitably. By giving historical evidence, Mr Basu showed how investors could time their buying and selling.
As the markets were moving sideways for most past of the last three to four years, fund houses have been constantly pushing debt funds as safe products. However, as Moneylife has pointed out many times in the past and re-emphasised in the section on when to buy bonds and bond funds, the returns from debt funds can be volatile and low. When comparing the returns to fixed deposits, debt funds may not always be a better option even post-tax. To answer the query about how the returns from debt can be better by having a sense of timing. Mr Basu explained how one could time their bond investments by analysing bond yields.
Mr Basu spoke on what one should be expecting from the new government and whether we are in for a ‘structural’ bull market. In the highly awaited last session, Mr Basu spoke on what to buy, keeping in mind the Central Bank’s stance on interest rates, market valuation and expected reforms from the new government.
The session included a lively interaction. Smart saving and smart investing is all about buying the right product at the right time. If you missed out on this event, not to worry, Moneylife will be conducting many more sessions such as this in future. Keep yourself updated on such events and new services, click here to become a Moneylife member.