Stocks
Sensex, Nifty trending higher: Friday Closing Report

Unless the Nifty breaks the previous day’s low, the trend is up for now

 
The market closed in the positive on optimism that the European Central Bank’s bond buying programme will help ease the problems in the debt-ridden continent. Yesterday we had mentioned that the higher high on the Nifty may change the direction. Today the index made a higher high and higher low and closed in the positive. Unless the benchmark breaks the previous day’s low, we see the trend up for now. The National Stock Exchange (NSE) saw volume of 51.75 crore shares and a advance decline ratio of 1151:523.
 
Tracking the global markets, which were boosted by the European Central Bank’s (ECB) bond buying plan to help distressed members, the domestic market too opened higher. The Nifty opened 71 points higher at 5,309 and the Sensex resumed trade at 17,576, a jump of 230 points over its previous close.
 
The opening figures on both benchmarks were their intraday lows. Across-the-board buying saw all trading in the positive. The market continued to trade firm on support from its global peers.
 
Meanwhile, the turmoil-ridden Monsoon Session of Parliament came to an end on Friday after most of its sittings were washed out over the controversial coal block allocation issue with the main opposition Bharatiya Janata Party (BJP) remaining unrelenting on its demand for resignation of prime minister Manmohan Singh.
 
The second-worst session since the 2009 Lok Sabha (Lower House) elections functioned for only six out of 19 days and was paralysed for remaining period due to the stand-off between government and the BJP.
 
Gains in the key European markets kept the local benchmarks on a higher trajectory in noon trade. The upmove enabled the market hit its intraday high in the last half hour with the Nifty touching 5,347 and the Sensex scaling 17,701.
 
The market closed marginally off the highs. The Nifty gained 104 points to 5,342 and the Sensex settled at 17,684, a jump of 337 points.
 
While the broader indices also joined the rally, they lagged behind the Sensex. The BSE Mid-cap index settled 1.14% higher and the BSE Small-cap index climbed 0.76%.
 
All sectoral indices closed higher today. The top gainers were BSE Capital Goods (3.04%); BSE Realty (up 2.70%); BSE Metal (up 2.66%); BSE Bankex (up 2.29%) and BSE Auto (up 1.99%).
 
Today’s rally saw all 30 shares in the Sensex list close higher. They were led by Tata Steel (up 5.72%); ICICI Bank (up 4.68%); Tata Motors (up 4.40%); Larsen & Toubro (up 3.86%) and Hindalco Industries (up 3.39%).
 
The top two A Group gainers on the BSE were—Jaiprakash Power Ventures (up 7.33%) and Indian Bank (up 6.74%).
The top two A Group losers on the BSE were—United Spirits (down 4.94%) and Torrent Power (down 4.39%).
 
The top two B Group gainers on the BSE were—Hikal (up 20%) and Store One Regail India (up 19.96%).
The top two B Group losers on the BSE were—Silicon Valley Infotech (down 18.18%) and Shri Lakshmi Cotsyn (down 15.18%).
 
Out of the 50 stocks listed on the Nifty, 47 stocks settled in the positive. The top gainers were DLF (up 5.71%); Tata Steel (up 5.55%); ICICI Bank (up 4.58%); L&T (up 4.25%) and Tata Motors (up 4.05%). BPCL (down 0.53%0 and Ranbaxy Laboratories (down 0.03%) were the two losers on the index.
 
Markets in Asia closed on a firm footing on hopes that the ECB’s bond buying plan will boost global economies. Adding to the good news, the Chinese government’s approval of new infrastructure projects to push growth saw the Shanghai Composite notching its best single-day gain in the last eight months.
 
The Shanghai Composite soared 3.70%; the Hang Seng jumped 3.09%; the Jakarta Composite advanced 0.99%; the KLSE Composite gained 0.41%; the Nikkei 225 climbed 2.20%; the Straits Times rose 0.75%; the Seoul Composite surged 2.57% and the Taiwan Weighted settled 1.34% higher.
 
At the time of writing, the key European indices were up between 0.16% and 1.11% and the US stock futures were in the green, indicating a positive opening for US stocks.
 
Back home, foreign institutional investors were net buyers of shares totalling Rs166.58 crore on Thursday whereas domestic institutional investors were net sellers of equities amounting to Rs33.76 crore.
 
Pharma major Aurobindo Pharma today said it has received final approval from the US FDA to manufacture and market Amlodipine Besylate and Benazepril Hydrochloride capsules, used for treating hypertension, in the American market. The capsules are generic bio-equivalent to Novartis Pharmaceuticals Corp’s Lotrel capsules and the products are ready for launch. The stock jumped 3.39% to close at Rs123.40 on the NSE.
 
On day two of captive coal mines review by an inter-ministerial group (IMG), Reliance Power today said it has begun production ahead of schedule from its blocks Moher and Moher-Amlohri extension in Madhya Pradesh. The two blocks are meant to be used as fuel source for the 4,000 MW Sasan Ultra Mega Power Plant and are under the scanner of the IMG reviewing the status of coal block allocation. The stock rose 1.28% to close at Rs79.20 on the NSE.
 
State-owned Oriental Bank of Commerce (OBC) on Friday slashed fixed deposit rates on select maturities by up to 0.5% in line with several other banks including SBI. However, the bank has raised rate by a marginal 0.1% on fixed deposit of 5-10 years maturity to 9.10% as against 9%. OBC surged 4.99% to close at Rs299.55 on the NSE.
 

 

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Government may hike fuel prices next week

The oil ministry is wary that if oil firms are allowed to raise just petrol prices on Friday or Saturday, the political opposition to the unpopular decision may force the hands of the Cabinet into not hiking diesel, LPG and kerosene rates  

 
New Delhi: The government may hike petrol, diesel, cooking gas and kerosene prices simultaneously as early as next week with oil minister S Jaipal Reddy saying “difficult and painful” decisions need to be taken, reports PTI.
 
“There are no immediate proposals to raise prices of various oil products including petrol,” Mr Reddy told reporters.
 
Though he did not specify when the hike may take place, indications are it could be done after the Cabinet meets next week.
 
The ministry is wary that if oil firms are allowed to raise just petrol prices on Friday or Saturday, the political opposition to the unpopular decision may force the hands of the Cabinet into not hiking diesel, liquefied petroleum gas (LPG) and kerosene rates.
 
With oil firms losing a record Rs560 crore per day on sale of regulated diesel and cooking fuels and another Rs 16 a day on petrol, the oil ministry is pushing for raising rates once the Monsoon Session of Parliament ends on Friday.
 
“We are of course facing treacherous crisis of unpredictable magnitude... Our oil companies will lose huge nearly Rs200,000 crore (if rates are not raised),” Mr Reddy said, adding that steps need to be taken to reduce this deficit. “We have to take some difficult, painful decisions.”
 
On the political opposition to raising fuel rates, Mr Reddy said fuel pricing was a classic case of “politics defeating economics”.
 
Mr Reddy said he has moved a note for the consideration of the Cabinet Committee on Political Affairs (CCPA) explaining the precarious situation facing the oil sector. “It is my duty as a minister to bring facts to the notice of CCPA. When will it meet, I have no idea”.
 
State-owned fuel retailers are losing over Rs5 per litre on sale of petrol, a commodity which was freed from government control in June 2010 but whose rates haven’t moved in tandem with cost.
 
They sell diesel at a loss of Rs19.26 a litre, kerosene at Rs34.34 per litre and domestic LPG at Rs347 per 14.2-kg cylinder.
 
“Petrol price increase is necessary. We have to take decision in consultation with other oil companies and the government,” IOC chairman RS Butola said, adding that the company lost Rs950 crore on sale of petrol in the first quarter and has lost another Rs 300 crore since then. 
IOC’s borrowings are at around Rs88,000 crore and not far from the ceiling of Rs1,10,000 crore that the company can borrow, he said.
 
“We have a deficit of Rs5,000 crore to Rs6,000 crore every month. If it is not met, our capability to buy crude oil will be impacted,” he said.
 
Diesel is being sold at a loss of Rs19.26 a litre, kerosene at Rs34.34 per litre and domestic LPG at Rs347 per 14.2-kg cylinder. At current rate, the three firms are projected to lose Rs1,92,951 crore in revenues in the financial year ending 31 March 2012.
 
As per the oil ministry’s proposal, every household would get only 4-6 LPG cylinders at subsidised price of Rs399 in Delhi and they will have to pay market price of Rs746 per cylinder for any requirement beyond that.
 
Besides considering raising diesel, domestic LPG and PDS kerosene rates, the CCPA may also consider a cut in the Rs14.78 per litre excise duty currently levied on petrol.
 
IOC, Hindustan Petroleum Corp (HPCL) and Bharat Petroleum Corp (BPCL) reported a combined revenue loss of Rs47,811 crore on fuel sales in the first quarter. Of this, upstream firms like ONGC made good Rs15,061 crore by the way of discount of crude oil they sell to them.
 
The oil ministry sought cash subsidy for the remaining Rs32,750 crore but the finance ministry has not released any.
 
In the absence of the subsidy support, IOC reported the highest quarterly net loss by any Indian company at Rs22,451 crore. HPCL posted Rs9,249 crore net loss in April-June, while BPCL reported a net loss of Rs ,836 crore.
 
Oil firms would most likely post net losses even in the second quarter as the logjam in Parliament over coal blocks allocation has meant that supplementary demands for grants are not approved and no subsidy payout is possible till the next winter session of Parliament in November/ December.
 

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Troubled Monsoon Session of Parliament ends

“This session is likely to be remembered for the work that was not done,” observed Rajya Sabha (Upper House) chairman Hamid Ansari while adjourning the House sine die

 
New Delhi: The turmoil-ridden Monsoon Session of Indian Parliament came to an end after most of its sittings were washed out over the controversial coal block allocation issue with the BJP remaining unrelenting on its demand for resignation of prime minister Manmohan Singh, reports PTI.
 
The second-worst session since the 2009 Lok Sabha (Lower House) elections functioned for only six out of 19 days and was paralysed for remaining period due to the stand-off between government and main opposition Bharatiya Janata Party (BJP).
 
The worst session was the Winter Session of 2010 which was a complete washout due to the opposition demand for setting up of a Joint Parliamentary Committee in to the 2G spectrum allocation scam.
 
“This session is likely to be remembered for the work that was not done,” observed Rajya Sabha (Upper House) chairman Hamid Ansari while adjourning the House sine die.
 
Minutes before, speaker Meira Kumar adjourned Lok Sabha sine die without making the customary concluding address. The prime minister and Leader of Lok Sabha Sushilkumar Shinde were present when the House was adjourned.
 
Observing that the data on work done was “in no need of commentary”, Mr Ansari regretted that 62 hours were lost in the din during the session which began on 8 August 2012. Only three bills could be passed. While Question Hour was taken up once in the 19-day session, only 11 out of 399 starred questions could be taken up.
 
The Constitution amendment bill for providing reservation in promotions to Scheduled Castes (SCs) and Scheduled Tribes (STs) was introduced amid high drama with the Upper House proceedings witnessing a new low with members of Samajwadi Party (SP) and Bahujan Samaj Party (BSP) coming to fisticuffs.
 
The measure could not be taken up for consideration and passage, despite being listed for the last three days due to vociferous protests by SP and Shiv Sena. BSP supremo Mayawati’s suggestion to extend the session for passage of the bill did not find favour among other parties. 
 
The controversy over coal block allocation continued even though prime minister Manmohan Singh made a statement in both Houses of Parliament on 27 August 2012 in the light of the CAG (Comptroller and Auditor General of India) report.
 
A highlight of the session was the bonhomie between the ruling alliance and the opposition witnessed during the unanimous election of PJ Kurien as the deputy chairman of Rajya Sabha on 21 August 2012.
 
It was again visible on the last day of the session, when the opposition greeted Mr Kurien as he sat next to Leader of the Opposition Arun Jaitely.
 
Both the Houses of Parliament showed solidarity with the people of North East, with Rajya Sabha adopting a unanimous resolution demanding a thorough probe into the spread of rumours that created panic and assuring them that they are safe anywhere in the country, while urging them to go back to their places of work and study.
 
The session also saw cricket icon Sachin Tendulkar beginning his innings as a lawmaker when he attended Rajya Sabha as its member. Nominated to the Upper House in April, he had taken oath during the inter-session period.
 
The Whistle Blowers Protection Bill, aimed at protecting those exposing corruption, could not be passed as discussions remained incomplete on this anti-graft measure.
 
Though the government had listed around 30 bills for consideration and passing in Lok Sabha, only four bills were passed in the month-long session and that too in din without any discussion.
 
The Rajya Sabha could pass only three bills including the AIIMS amendment bill. Two bills—Armed Forces Tribunal (Amendment) Bill and the Constitution (17th) Amendment bill to provide quota in promotion to SCs/ STs—could be introduced. The last three days saw commotion and drama in the Upper House over quota in promotion bill. 
 
In the Lok Sabha, speaker Meira Kumar said it was sad that Parliament could not transact normal business during the session.
 
“In our democracy, sometimes there are forms of dissent, which disturb us. But we are all staunch believers in the functioning democracy of our country and I am very hopeful that a solution will be found, situation will normalise and Parliament will function,” she said after the session ended.
 
Both the Houses offered felicitations to Indian sportspersons for winning medals at London Olympics, 2012.
 
The session also witnessed sad demise of Union minister Vilasrao Deshmukh. Both Houses condoled the death of Mr Deshmukh, a sitting member of Rajya Sabha.
 
Parliament also condoled the death of cine star Rajesh Khanna, Captain Lakshmi Sehgal and eight former members of the Upper House.
 
In the Rajya Sabha, none of the eight short notice questions admitted could be taken up. So was the fate of all three short duration discussions listed on price rise, drought and food security.
 
None of the four matters of urgent public importance listed in the form of calling attention motions came up for discussion. Similarly, three half-an-hour discussions listed could not be proceeded with.
 
The Upper House also gave farewell to its secretary general VK Agnihotri.
 
The Rajya Sabha discussed the issue regarding need to create a separate state of Telangana through a private member's resolution. 
 

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