Sensex, Nifty trapped in a zone: Friday closing report
Nifty is losing its momentum and a close below 5,805 will be the sign that a correction is about to start
After several days of rally, markets paused in the US yesterday and in Asia today. Back home, the indices too opened in the red ignoring better than expected July 2013 factory output data and the data showing deceleration of the rate of retail inflation for August 2013, which was released after market hours on Thursday. The Sensex opened at 19,745 and moved in  a range of 19,899 to 19,676 before closing at 19,733 (down 49 points or 0.25%). The Nifty opened at 5,828 and hit intra-day high of 5,884. The index hit an intra-day low at 5,823 before closing at 5,851 (down 0.10 points). The National Stock Exchange (NSE) recorded a much lower volume of 67.01 crore shares.

The top five gainers among the other indices on the NSE are Realty (2.82%); Infra (1.90%); PSE (1.90%); PSU Bank (1.38%) and Nifty Midcap 50 (0.95%). The only five losers were IT (1.18%); FMCG (1.14%); Service (0.25%); MNC (0.24%) and Finance (0.01%).


Of the 50 stocks on the Nifty, 34 ended in the green. The top five gainers were BHEL (5.97%); DLF (5.13%); Axis Bank (4.21%); PNB (3.98%) and Reliance Infrastructure (3.77%). The top five losers were HCL Technologies (2.64%); UltraTech Cement (2.32%); ITC (1.87%); Tata Steel (1.72%) and ICICI Bank (1.65%).

The Prime Minister's Economic Advisory Council (PMEAC) today sharply trimmed India's GDP growth forecast to 5.3% for the year ending 31 March 2014 from earlier estimate of 6.4% and said that tight monetary policy by the RBI may be continued until stability in the rupee value is achieved.
India may it find it a "challenge" to stick to its fiscal deficit target of 4.8% of GDP in the fiscal year that ends next March, the PMEAC said in a report on Friday. It estimated that the net foreign direct investment (FDI) flows would likely be at $21.7 billion for the current fiscal year, down from an earlier estimate of $24 billion.
India's gold imports are likely to come down to $38 billion from $53.8 billion this fiscal despite some demand pick up during the forthcoming festival season, Prime Minister's key economic advisor C Rangarajan said. The PMEAC has projected gold and silver imports at $40 billion this fiscal as against $55.8 billion shipped in last fiscal.
The Reserve Bank of India on Thursday, 12 September 2013, announced the details of its committee constituted to examine the current monetary policy framework and recommend ways to revise and strengthen it to make it more transparent and predictable. The committee is expected to submit its report within three months, the RBI said.
Except for Jakarta Composite (up 0.43%), Nikkei 225 (up 0.12%), NZSE 50 (up 0.20%) all the other Asian indices ended in the negative. Shanghai Composite, top loser, fell 0.86%.
The number of Americans seeking unemployment benefits plummeted last week 31,000 to a seasonally adjusted 292,000. But the drop was mostly because of technical issues in two states that delayed the processing of applications. This has triggered speculation that the Federal Reserve would begin trimming its monetary stimulus at next week's meeting.
The US and Russia began talks on Thursday on Moscow's plan for Syria to surrender its chemical weapons as Damascus formally applied to join a global poison gas ban, but Secretary of State John Kerry held fast to the position that the US may still use military force if diplomacy fails. Separately, Syria's President Bashar al-Assad reportedly said that the US needs to give up "its policy of threats" and stop shipping arms to Syrian rebels before his government surrenders its chemical weapons.
Among US data out later on Friday are retail sales for August and consumer sentiment for September.


NSEL crisis: Who are IBMA’s clients, apart from Sahara Q Shop?

Indian Bullion Markets Association-IBMA, indirectly owned by Financial Technologies, is the biggest member-creditor in the NSEL system. Who were IBMA’s clients? The biggest was Sahara Q Shop (19%) followed by a large number of commodity brokers like KR Choksey Commodity, Almondz Commodities and Capital First Commodities etc. 


The Indian Bullion Markets Association (IBMA), promoted by Jignesh Shah-led Financial Technologies (India) Ltd, is supposed to receive a whopping Rs1,170 crore in settlement from National Spot Exchange Ltd (NSEL).  While we wrote about the complete list of NSEL members, nothing much was known about IBMA clients. The members of IBMA are some of the top names in commodities market and include Sahara Q Shop Unique Products Range Ltd, KR Choksey Commodity Brokers and Almondz Commodities to name a few. 


The top 20 members to whom IBMA owes money to are…


TM/ Client Name

Amount (Rs Cr )

Sahara Q Shop Unique Products Range Ltd


K R Choksey Commodity Brokers Pvt Ltd


Capital First Commodities Ltd


Javerilal Oswal Commodities Pvt Ltd


J.G.A. Shah Commodities


Mount Shikhar Commodities Pvt Ltd


Kunal Comtrade Private Limited


Natsons Securities


Lecmec Commodities Broking Pvt Ltd


AKC Financial Consultants (P) Ltd


Padmakshi Commodities Pvt Ltd


Classone Exports Pvt Ltd


Ray Trading Pvt Ltd


Prudent Comder Pvt Ltd


Sujash Enterprises Pvt Ltd


Almondz Commodities Pvt Ltd


Jade Commodities Pvt Ltd


Twenty20 Commodities Pvt Ltd


Vibrant Commodities Trading Pvt Ltd


IBMA, owes a total of Rs1,170 crore to as many as 108 members, some of whom are trading members and some are clients. It is surprising to see Sahara Q Shop right on top of the list, with a whopping Rs226 crore owed by NSEL. KR Choksey, a well known brokerage, is supposed to receive Rs97.25 crore. The full list of IBMA’s clients and monies outstanding in late August is given at the end of the piece. A small amount of money has been released to these clients proportionately, over the last three weeks.


Earlier, Moneylife had published a list of members with highest exposure in NSEL. Customers of some of the biggest names in the Indian broking fraternity who aggressively sold NSEL’s borrowing-lending racket are staring at large outstanding in NSEL. Clients of Anand Rathi Commodities stand exposed to over Rs600 crore while those of India Infoline stand to lose over Rs300 crore. So far, NSEL has hardly kept up with its payment schedule. This means there is a big risk that NSEL may not pay back its entire dues, including IBMA and its members. The piece can be accessed here: NSEL brokers with the highest exposures


Commodities market regulator Forward Markets Commission (FMC), which is charged with supervising the handling of payment crisis at NSEL, had found that IBMA reportedly invested Rs1,200 crore in the NSEL ready-forward product.


IBMA was set up to act as de facto association of bullion traders, mainly for price discovery on the lines of London Bullion Market Association (LBMA), according to NSEL. “Besides providing AM/PM price fixing, thus removing dependence on LBMA’s benchmark prices, IBMA would also try to remove inefficiencies in the Indian bullion market in a steady manner,” Anjani Sinha, the erstwhile managing director and chief executive, NSEL had said at the launch of IMBA.


Moneylife had sought clarity about the role of IBMA in an interview with the top brass of NSEL some time ago. We had asked how IBMA was called an association, a term used by trade and industry lobbies, usually conceived as societies or non-profit companies. NSEL had replied that IBMA was called an 'Association' because it was promoted by NSEL “in a cooperative structure along with various stakeholders such as small jewellers and bullion traders, with an aim to work as an aggregator.”


NSEL had argued that IBMA, a member of NSEL, “has around 130 bullion dealers and jewellers from across the country as its shareholders. In addition to making representations on behalf of physical market participants, policy makers and market linkages services, IBMA also offers various services to its members such as sourcing of material, clearing and forwarding (C&F)."


According to the top management, IMBA was setup to represent matters relating to bullion trade and industry on the physical side, before various authorities and ministries, who are involved in policy formulation. This role has now been extended to agriculture-based commodities. The futures market’s views regarding policy formulation are being represented by several national and regional level commodity exchanges. It, however, lacked adequate representation by physical market participants (to which futures market is an adjunct). Due to this gap, physical market participants did not have enough say in policies formed by state governments, warehousing regulators and ministries related to commodities.


Shreekant Javalgekar, managing director and chief executive of Multi-Commodity Exchange Ltd (MCX) was also on IBMA board until recently. NSEL holds a 74% stake in IBMA, while the remaining shares are held by bullion traders.


To understand more about how NSEL functions, and the role of IBMA in the commodities markets, Moneylife question and answer piece will be helpful


Since the middle of July 2013, trading in NSEL has been suspended. NSEL has failed to make payouts to investors and failed to recover money from those who were supposed to make pay-ins. It now appears that there is not enough stock of commodities in the warehouses of NSEL against which warehouse receipts were issues. In August 2013, trading in e-series was also suspended. This was of concern for large number of investors who had purchased e-series products like e-gold.




Amit Anam

3 years ago

Why Jignesh Shah is still out, why is he not arrested for one of the biggest fraud, who is backing him and why no action is being initiated against him????



In Reply to Amit Anam 3 years ago

might be he has bribed the regulators and investigative agencies that still after 1.5 month down the line no action....

Anil Ambani's I-T account hacked by CA student

Hyderabad-based young chartered accountant student allegedly hacked into I-T returns account of the R-ADAG chairman and accessed details of his income, tax amount paid, PAN card number and even changed the password twice

Hyderabad-based young chartered accountant student has been booked for alleged hacking income tax (I-T) returns e-filing account of Anil Ambani. According to police, the 21-year-old woman, who has been doing her chartered accountancy articleship at Manoj Daga & Co in Hyderabad, hacked Ambani's account with an intention to know his income and tax amount paid over a period.


After a preliminary investigation, she was booked on 7th September under relevant sections of Information Technology Act and faces arrest in the case.


"The girl hacked Ambani's e-filing of Income-Tax returns account with an intention to check the industrialist's income and tax amount paid by him over the period of time. After hacking the account of the chairman of Anil Dhirubhai Ambani Group (ADAG), she accessed the details of his income, tax amount paid, PAN card number and even changed twice the password of his e-account on the IT website," an official involved in the probe told PTI.


According to police, a chartered accountant firm in Mumbai, which files 54-year-old Ambani's individual tax details, was intimated through an email from IT department on June 26 that as per request, the industrialist's e-return account had been changed. Again on July 12, the firm received another email stating that second time the password had been changed.


As suspicion grew, the ADAG group representative complained to Himanshu Roy, joint police commissioner (crime) at Mumbai, who directed cyber cell inspector Mukund Pawar to probe the case.


"As preliminary probe suggested it as a clear case of cybercrime since it involved hacking into the e-return account, a case was registered on 7th September. Probe revealed that the account was hacked from Manoj Daga & Co's computer following which a team rushed there and upon questioning, the girl confessed to have hacked into Ambani's account," Pawar told to PTI.


The server has been seized, Pawar said adding that, "We have all technical and physical evidence against her. The accused, who is in Hyderabad, will have to face the arrest."


The offence is bailable.



Abhineo Agarwal

3 years ago

So what do we know? That the IT guys are not very proficient or that AA and team are not up to mark. I guess its kind of disappointing from both ends.

R Choksi

3 years ago


My and my mother's income tax accounts too were hacked on 2nd Sep 2013. On that day, at around 6.15 pm when I accessed my emails, I noticed two emails received from Income Tax department with time stamp 3.05 pm and 3.09 pm respectively, stating that the password had been reset and if I did not reset the password, then it means someone else has reset the password and I should contact 1800 4250 0025 immediately. I called up and informed that I had not reset the password/s and thus wanted to lodge a complaint for an illegal access. I was told by the person that they did not have any format or instruction to take down any complaint for such things and instead explained me the steps to reset the password in case I had forgotten.


Vicky Shah

In Reply to R Choksi 3 years ago

You can write a complaint addressed to Senior inspector of Police Cyber Cell or Cyber Police station.


Vicky Shah

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