Sensex, Nifty to rally subject to dips – Weekly closing report
Nifty may continue to rise as long as it stays above the low of 7,540 on a weekly basis
The S&P BSE Sensex closed the week that ended on 8th August at 25,329.14 (down 152 points or 0.60%), while the CNX Nifty closed at 7,568.55 (down 34 points or 0.45%) for the week. Last week we had mentioned that the Nifty, Sensex may try to rally midweek. The indices witnessed a strong upmove for the first two trading sessions of the week, but started moving lower toward the end of the week.
On lower volume on the NSE, the index rebounded on Monday. After trading above Friday’s low for the entire session, the Nifty closed near the day’s high at 7,684 (up 81 points or 1.07%). RBI was to give out its third bi-monthly monetary policy on Tuesday.
The government was planning to move the controversial Insurance Laws (Amendment) Bill in Rajya Sabha on Tuesday after holding discussions with Congress and other parties on Monday. However, the bill was deferred after a meeting of the government with opposition leaders failed to break the deadlock. The bill has been referred to an all-party parliamentary panel called the select committee for review. The Bill aims at raising the ceiling on foreign direct investment (FDI) in insurance to 49% from the current 26% limit.
On Tuesday, Nifty opened higher ahead of the RBI bi-monthly monetary policy review but was pulled down after lower activity was reported in the services sector. Nifty closed at 7,747 (up 63 points or 0.82%).  The RBI maintained its stance on keeping key policy rates unchanged. The repo rate and cash reserve ratio remain at 8% and 4%, respectively. The RBI cut SLR by 50 basis points to 22%.
India’s services sectors recorded the third consecutive month of expansion, even though activity was lower in July compared to June’s 17-month high. The HSBC Services Purchasing Managers' Index (PMI), compiled by Markit, fell to 52.2 in July from June's 17-month high of 54.4. A reading above 50 denotes expansion while below signals a contraction. Overall activity was below 50 for nearly a year but starting to expand again in May.
On Wednesday, Nifty closed at 7,672 (down 75 points or 0.96%). Rupee turned weak to reach its lowest since 14 March 2014, at 61.336 against the US dollar.
Life Insurance Corporation of India is looking at equity investments of around Rs60,000 crore for 2014-15, announced its chairman SK Roy on Thursday. German factory orders dropped the most in more than two and half years indicating that geopolitical tension with Russia is leaving its mark on Europe's largest economy.
Nifty was indecisive on Thursday which led it to close lower for the second consecutive session. Nifty closed at 7,649 (down 23 points or 0.30%).
The government announced that it has opened up the defence and railway industries to more investment by foreign firms, in a move to attract more international capital and expertise to the sectors. Meanwhile, the Financial Times reported that Reserve Bank of India (RBI) Governor Raghuram Rajan in an interview said that global markets are at a risk of a "crash" due to continued cheap money policy by Central Banks.
On Friday the Nifty fell sharply closing at 7,569 (down 81 points or 1.06%) after President Barack Obama ordered US warplanes back into Iraqi skies, a step to prevent "genocide" by Islamist extremists against minorities. For the week, among the other indices on the NSE, the top two performers were IT (2%) and Auto (1%) while the worst two performers were Media (3%) and PSU Banks (2%).
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:





3 years ago

Atleast Raghuram Rajan knows what is happening around the world,my grretings to him

Geodesic gets winding up order from Bombay HC

The RoC has appointed an official liquidator to wind up Geodesic following orders from Bombay High Court. In July, the company's five directors were booked for cheating investors for Rs720 crore


Geodesic Ltd, the internet software and service provider, which has run up more than Rs1,200 crore of liabilities, defaulted in repaying its foreign currency convertible bond (FCCB) holders and loans to financial institutions, has been issued a winding up order by the Registrar of Companies (RoC), following direction from the Bombay High Court.

In a regulatory filing, BSE said it was informed by the Deputy Registrar of Companies at Maharashtra that Geodesic was ordered to wind up. "(An) Official Liquidator has been appointed as a provisional liquidator in the Company Petition 471 of 2013 in Company Application (L) No. 153 of 2014 by the High Court, Bombay dated 7 April 2014," it said.

According to a report from Livemint, in July, a first information report (FIR) was lodged against Geodesic after its five directors were booked in connection with a case of cheating investors to the tune of Rs720 crore.

As reported by Moneylife , the company had used services of bouncers during its annual general meeting (AGM) on 10th May. Nitin Rao, a shareholder, who attended the Geodesic AGM, shared his experience on his blog: He wrote, “the meeting was sparsely attended by shareholders but there were around a dozen bouncers at the AGM. Either the management wanted to intimidate shareholders or they feared the proceedings will get rowdy.”

“The meeting started with the chairman welcoming the shareholder who mentioned that he wanted to be upfront with the shareholders and accounts had to be restated owing to write off of receivables etc. The chairman said, FCCBs couldn’t be repaid as funds are locked into investment accounts and liquidating them now will result in not meeting their liabilities. He gave the status update of all the court cases on Geodesic. He invited the shareholders to join the Board to help the company in its time of crisis,” Rao wrote in his blogpost.
During the meeting, one of the investors from Nashik, said that, “Chairman had lied to shareholders, accounts had to be restated, as all the sales were fake. FCCBs couldn’t be repaid as the money has been siphoned off by promoters and alleged that the promoters are thieves and he had lodged a police complaint against them.”
In reply, Prashant Mulekar of Geodesic told the investor that all these were lies and the company is being harassed. Mulekar also accused the investor of filing a complaint against the promoters at Nashik. The shareholder had apparently told the police that the promoters had met him at his hotel in Nashik and encouraged him to buy shares in the company, painting a rosy picture, the blogpost mentioned.

Moneylife earlier wrote, Crazy about “corporate governance norms”, SEBI is blind about Geodesic . The shareholders of Geodesic have already lost their value as its share price is around Rs3 and BSE transferred it to 'T' (Trading Settlement) group. While many shareholders who complained to Securities Exchange Board of India (SEBI) about the company, the market regulator, so far, has failed to take any action against Geodesic and its promoters.

Geodesic closed Friday 3.4% at Rs1.99 on the BSE while the 30-share benchmark Sensex ended 1% down at 25,329.



Prem Bajaj

3 years ago

any reason they are all not behind bars?
Capital Punishment? where not.

Nifty, Sensex may put in a rally on Monday – Friday closing report

If Nifty does not go below 7,540, the index would rally


As we mentioned in Thursday’s closing report, the Indian market saw a major move in the downward direction on Friday. The pessimism on the Indian bourses was in line with the performance of most of the Asian indices, which fell as US President Barack Obama authorised air strikes in Iraq.

Today the Indian indices opened much lower and remained in the same range for the entire session. The S&P BSE Sensex opened at 25,407 while NSE's 50-share CNX Nifty opened at 7,589. Sensex moved in the range of 25,233 and 25,407 and closed at 25,329 (down 260 points or 1.02%). Nifty also moved between 7,540 and 7,592 before closing at 7,569 (down 81 points or 1.06%). NSE recorded a volume of 72.86 crore shares. India VIX rose 3.40% to close at 14.6175.

Monsoon rainfall was reportedly 18% above average in the past week after rainfall of 9% below average in the previous week.

Gold prices again crossed the Rs29,000-mark to hit over two-month high by rising Rs300 to Rs29,100 per 10 gram. The rising physical demand in view of the festive season and depreciating rupee could be the reasons for the surge in price of the precious metal.

Domestic car sales in July rose an annual 5% to 1.37 lakh units in July this year as compared to 1.31 lakh units same month of 2013, SIAM data showed. Car sales are expected to grow between 5% and 10% this fiscal year, Vishnu Mathur, director general of the Society of Indian Automobile Manufacturers (SIAM), said on Friday.  Total two-wheeler sales in July 2014 grew 13.73% to 12.87 lakh units from 11.32 lakh units in the same period last year. Total sales of vehicles across categories rose 12% to 15.86 lakh units in July 2014 as against 14.16 lakh units in the same month of 2013, it added.

Bharti Infratel (2.25%) and Bharti Airtel (2.09%) were among the top three gainers in the ‘A’ group on the BSE. Bharti Airtel sold 4.5% stake in Bharti Infratel raising close to Rs 2,140 crore. This step would allow it to comply with a regulation on minimum public holding and generate funds which it could use to pare debt. Bharti Airtel was also the top gainer in Sensex 30 pack.

State-run BHEL (3.74%) was among the top three losers in the Sensex 30 stock.


Government has identified three sick PSUs namely, Praga Tools Ltd, Bharat Heavy Plates Vessels and Bharat Refractories which will be either merged or taken over by SAIL, BHEL and HMT.

Bhushan Steel, remained the major loser today as well. The company vice chairman, Neeraj Singhal, was arrested on Thursday in the Syndicate Bank bribery. Bharat Steel fell 9.99% on Friday, to remain top loser in the ‘A’ group on the BSE.

US indices fell on Thursday. US President Barack Obama said he had authorised air strikes on Iraq and humanitarian supply drops to prevent "genocide" by Islamist extremists against minorities. The president said US warplanes could also target Islamic State militants if they advance on the city of Arbil, where the US has a diplomatic presence and advisors to Iraqi forces.

Except for Shanghai Composite (0.31%) all the other trading Asian indices closed in the red. Nikkei 225 (2.98%) was the top loser. China's trade surplus surged to a record in July as export growth unexpectedly accelerated and imports fell, suggesting global demand will help the government achieve its 2014 economic-expansion goal of about 7.5%. Overseas shipments increased 14.5% from a year earlier, the Beijing-based customs administration said today.


Imports dropped 1.6%, leaving a trade surplus of $47.3 billion, bigger than estimates.

European indices were trading lower, while US premarket Futures were trading marginally in the green. The European Central Bank (ECB) left interest rates unchanged on Thursday, 7 August 2014. The Bank of England (BoE) also left interest rates unchanged on Thursday. The BoE has kept interest rates on hold for the 65th consecutive month. The bank also kept the size of the Bank's economic stimulus programme, known as quantitative easing, unchanged at £375 billion.


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