If today’s low on the Nifty is broken, it may hit 5,490
The Indian market settled lower for the third straight day on selling by overseas investors in fast moving consumer goods, consumer durables and capital goods sectors. If today’s low on the Nifty is broken, the index may touch 5,490. The National Stock Exchange (NSE) recorded a volume of 55.99 crore shares and advance-decline volume of 770:773.
The Indian market opened in the negative despite supportive global cues. Markets in Asia were trading higher in opening deals on the back of the Bank of Japan’s pledge to support its stimulus programme and on the European Central Bank president Mario Draghi announcement on Thursday to continue with the loose monetary policy for an “extended period”. Overnight, US markets settled marginally higher on optimism from Japan.
The Nifty opened seven points lower at 5,568 and the Sensex started off at 18,494, a cut of 16 points over its previous close. The market witnessed sideways movement till late-morning trade in the absence of any domestic triggers.
However, selling pressure from fast moving consumer goods, power, capital goods and banking stocks pushed the Sensex lower in noon trade. But select buying in the auto and metal sectors helped the market pare its losses in post-noon trade.
Volatile trade continued till the end of the trading session keeping the indices in the red. A negative opening of the key European markets added to woes of the domestic market. The Nifty traded in the range of 5,535 and the Sensex oscillated between 18,389 and 18,525 today.
The market settled in red for the third day in a row on unimpressive economic indicators and cautiousness ahead of the quarterly earnings season, which kicks off next week.
The Nifty fell 22 points (0.39%) to 5,553 and the Sensex ended the session at 18,450, down 59 points (0.32%).
The broader indices settled mixed today. The BSE Mid-cap index added 0.02% while the BSE Small-cap index fell 0.15%.
The top sectoral gainers were BSE Oil & Gas (up 1.65%; BSE Auto (up 0.55%); BSE Metal (up 0.31%; BSE PSU (up 0.14%) and BSE Healthcare (up 0.06%). The main losers were BSE Fast Moving Consumer Goods (down 1.74%); BSE Consumer Durables (down 0.78%); BSE Capital Goods (down 0.72%); BSE Power (down 0.56%) and BSE Bankex (down 0.36%).
Sixteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were Maruti Suzuki (down 7.23%); ONGC (up 2.20%); Wipro (up 2.17%); Reliance Industries and Sterlite Industries (up 1.77% each). The top losers were HDFC (down 2.84%); ITC (down 2.79%); NTPC (down 2.42%); Bharti Airtel (down 1.13%) and ICICI Bank (down 1.11%).
The top two A Group gainers on the BSE were—Indraprastha Gas (up 11.45%) and Maruti Suzuki (up 7.23%).
The top two A Group losers on the BSE were—NMDC (down 4.48%) and Indian Bank (down 4.07%).
The top two B Group gainers on the BSE were— Shimoga Technologies (up 25%) and Thiru Arooran Sugars (up 20%).
The top two B Group losers on the BSE were—Garware Polyester (down 18.69%) and IOL Chemicals (down 14.53%).
Of the 50 stocks on the Nifty, 21 ended in the green. The key gainers were Maruti Suzuki (up 7.18%); ONGC (up 2.23%); HCL Technologies (up 2%); Sesa Goa (up 1.80%) and Hindalco (up 1.69%). The major losers were NMDC (down 4.94%); ITC (down 2.90%); HDFC, NTPC (down 2.87% each) and Ambuja Cement (down 2.51%).
Markets across Asia closed mixed as the Bank of Japan’s move to continue with its loose policy propped up some indices. On the other hand, markets in China, Hong Kong, Singapore and South Korea were lower on concerns about the global economy.
The Jakarta Composite rose 0.07%; the KLSE Composite added 0.01% and the Nikkei 225 surged 1.58%. Among the losers, he Hang Seng tumbled 2.73%, the Straits Times fell 0.24% and the Seoul Composite tanked 1.64%. Markets in China and Taiwan were closed for a local holiday.
At the time of writing, markets in Europe were down between 1.27% and 1.82% and the US stock futures were trading lower, indicating a lower opening for US stocks lower in the day.
Back home, foreign institutional investors were net sellers of equities amounting Rs326.21 crore on Thursday while domestic institutional investors were net buyers of shares totalling Rs64.73 crore.
UK-based Diageo Plc will kick launch its over Rs5,441-crore open offer to acquire an additional acquire 26% in United Spirits from 10th April. The open offer will close on 26th April. In a filing with the exchanges, United Spirits said the offer price shall remain at Rs1,440 per equity share. United Spirits closed 4.20% lower at Rs1,749.15 on the NSE.
Real estate major DLF today said that it will sale its windmills in Tamil Nadu and Rajasthan to two different companies as part of its stated objective of divesting its non core assets. While the Tamil Nadu windmill project is expected to fetch Rs189 crore, the windmill in Rajasthan will be sold for lump sum of Rs52 crore. The stock declined 0.77% to close at Rs232.90 on the NSE.
Uttam Galva Steels, in which the world’s largest steel maker ArcelorMittal has 33.80% stake, today said it has raised Rs76.14 crore through placement of shares to Mauritius-based Albula Investment Fund. Uttam Galva declined 4.51% to close at Rs69.80 on the NSE.
MSD, in its plea, alleged that the Indian pharma company has violated its intellectual property right over its anti-diabetes medicines, Januvia and Janumet, by coming in the market with its own drugs containing the same salts
The Delhi High Court today refused to grant interim relief on a patent row to US pharmaceuticals major Merck Sharp & Dohme (MSD) which sought to restrain Indian firm Glenmark Pharmaceuticals to manufacture and market anti-diabetes drugs Zita and Zita-Met.
Justice Rajiv Sahai Endlaw dismissed the interim application of the multinational pharma major that the Mumbai-based firm be restrained from manufacturing and selling the anti-diabetes medicines on the grounds that the salt used in the drugs were not of generic nature.
MSD, in its plea, alleged that the Indian pharma company has violated its intellectual property right (IPR) over its anti-diabetes medicines, Januvia and Janumet, by coming in the market with its own drugs containing the same salts.
The development assumes significance as on Monday the Supreme Court had rejected the plea of Novartis AG for patent protection of its anti-cancer drug Glivec.
The high court, however, kept the main petition of the US firm pending for filing of evidence and other subsequent legal proceedings before its joint registrar on 16 July.
According to market sources, a strip of seven tablets of Januvia (50 mg and 100 mg) is priced at Rs300 while Glenmark's version costs around 30% less.
Reacting to the order, the US firm expressed disappointment over the decision and said it is considering all options including filing an appeal. “MSD is extremely disappointed with the decision of denial of injunction by the Delhi High Court against Glenmark for patent violation of our drugs Januvia and Janumet,” a company spokesperson said, adding that “MSD is considering all options, including an appeal of the decision.”
The unholy nexus between builders, politicians and officials must be held fully responsible for illegal constructions and subsequent loss of lives and revenues
Till the time of writing this report, 40 people have lost their lives and over 69 are injured when a seven-storey building collapsed at Daighar area in Shil Phata near Thane. However, this has raised some serious questions about the unholy nexus between fly-by-night builders, local political leaders and government officials.
The point in this case is that the area between Kalwa-Mumbra (near Daighar) and Diva and Dombivali is notorious for illegal construction activities. This area full of marshland and anyone who wants to be a builder buys truckloads of debris and empties it on the marshy land, thus killing the protection of mangroves. Soon after, a new building is erected on the land. The surprising factor is the speed at which the builders (less than three months for a four to five storeyed building) are now constructing these illegal structures.
The collapsed seven-storey building in Lucky Compound was built in just two months! While the Daighar police registered a case against builders Salil and Khalil Jamadar under Indian Penal Code (IPC) Section 304 (culpable homicide not amounting to murder), the brothers have become untraceable immediately after the incident.
Civic officials had said that the building was unauthorised and was built on forestland. Some local residents claim that the building was built over a nullah. This raises further questions.
How were the builders allowed to develop the land that is not suitable for residential purpose? What were the civic officials doing for over two months while the building was being erected from ground zero? And who provided water and electricity for the construction activities? Aren't these people also responsible for the deaths?
In the 1990s, this area was less populated than nearby places like Dombivali. In fact, Mumbra had a population of less than 45,000. In 2012, the small-time village has grown into a city with a population of over nine lakh. However, since majority of people are outsiders, Mumbra has only 1.75 lakh registered voters.
This overcrowding has led to ever-increasing demand for houses, with basic amenities and not spacious flats. This explains the sudden increase in chawl structures on marshy lands near Diva. While small flats are available for Rs4-Rs5 lakh each, newer flats cost between Rs16 lakh and Rs22 lakh. However, one can still find a room (obviously in illegal structure) for less than Rs2 lakh.
Another interesting aspect about these illegal construction activities is this use of the maximum available space. All such illegal buildings and chawls are built in such a way that there is no space in between them for any movement. In fact, there are no roads, so not even an auto-rickshaw can pass between these buildings. This serves two purposes, one the builder gets more money and second, in case the civic authorities decide to demolish it, their machinery simply cannot reach the spot.
Neither the civic officials nor the police attempt to stop this illegal construction because the builders are shielded by political godfathers. In addition, everybody is kept happy with payoffs too, but no one wants to take any action. Sometimes, even if they want, either the police fail to provide any cover to them, or the builder gets the shield from his political godfather. Therefore, everybody tries to make some moolah by ignoring the illegal activities, until some mishap happens.
In the current case also, the absconding builders would surrender before the police after making some settlement using their political connections. Then the case would go to court and the builders would be out of jail to start constructing another illegal building in some other corner of the city. In addition, we all will forget about it until the next mishap.
The only way to stop all this is to hold the civic officials and local elected representative also responsible along with the builder for such mishaps and deaths.