As long as Nifty manages to stay above the 5,995 we may see the up move continuing
The Sensex and the Nifty closed at its highest level since 30 May 2013. Yesterday we had mentioned that the Nifty has to close above 6,015 for a strong up move. Today the index managed to cross this level towards the end of the trading session and closed at its high level for the day. The NSE saw a volume of 58.92 crore shares.
The Sensex opened higher at 20,000 while the Nifty too opened higher at 5,985. Both the indices traded in the positive throughout the day. They hit their respective intraday lows in afternoon trade, tracking a weak opening in European market. The Sensex hit a higher low of 19,956 and the Nifty hit a higher low of 5,975. However, both Sensex and Nifty traded higher and towards the end of the session shot up hitting a high of 20,177 and 6,051, respectively. The Sensex closed at 20,128 (up 180 points/0.90%) while the Nifty closed at 6,038 (up 65 points/1.08%).
Among the broader indices, the BSE Mid-cap index rose 0.74% and the BSE Small-cap index rose 0.24%.
All sectoral indices closed in the positive. The top gainers were BSE Realty (up 2.53%); BSE Bankex (up 2.04%); BSE Consumer durables (up 1.72%); BSE PSU (up 1.50%) and BSE Capital Goods (up 1.49%).
Out of the 30 stocks on the Sensex, 23 stocks settled higher. Top gainers were ONGC (up 4.42%); HDFC Bank (up 3.22%); BHEL (up 3.14%); Hindalco Inds (up 2.35%) and Hero MotoCorp (up 2.34%). Top losers were Mahindra & Mahindra (down 1.88%); Sterlite Inds (down 1.73%); NTPC (down 0.95%); TCS (down 0.82%) and Bajaj Auto (down 0.67%).
The top two A Group gainers on the BSE were—Uco Bank (up 14.92%) and Indiabulls Real Estate (up 9.17%).
The top two A Group losers on the BSE were—MMTC (down 4.99%) and Gitanjali Gems (down 4.97%).
The top two B Group gainers on the BSE were—Sunitee Chemicals (up 20%) and Metkore Alloys (up 19.79%).
The top two B Group losers on the BSE were—KBS India (down 19.97%) and Khaitan Chemicals (down 19.82%).
Of the 50 stocks on the Nifty, 41 ended in the in the green. The major gainers were Reliance Infrastructure (up 5.82%); ONGC (up 4.85%); Asian Paints (up 4.18%); Axis Bank (up 4.03%) and Bank of Baroda (up 3.69%). The key losers were HCL Technologies (down 1.75%); Mahindra & Mahindra (down 1.52%); TCS (down 1.19%); UltraTech Cement (down 0.80%) and NTPC (down 0.68%).
The board of directors of Punjab Chemicals & Crop Protection has considered and approved to sell, transfer or dispose its Agro Formulation Division. This division comprises all fixed assets located at Nandesari, Vadodara, Lote Parshuram and Flat at Vadodara to Coromandel Agrico Pvt Ltd by way of slump sale, subject to the approval of the shareholders, regulatory authorities and lenders. And have also approved to sell, convey, transfer, deliver or dispose the business conducted at Pune unit of Industrial Chemicals Division of the company either on a going concern basis or in parts or otherwise, including assets, title, interest and obligations, subject to the approval of the shareholders, regulatory authorities and lenders. The stock fell 15.8% to close at Rs37.05 on the NSE.
Moody's Investors Service said the rupee's depreciation will exacerbate inflationary and fiscal pressures, with both factors potentially constraining the country's sovereign rating. Moody's has a "stable" outlook on India's "Baa3" rating, its lowest investment grade-rating.
Among the Asian indices, Shanghai Composite was the major loser today, which fell 1.05%, after China's Finance Minister Lou Jiwei said the government is unlikely to provide a big fiscal stimulus this year. Nikkei 225 was the top gainer today, rose 1.32%.
US indices closed marginally higher on Wednesday after the Federal Reserve Chairman Ben Bernanke said the central bank's monthly bond purchases weren't on a "pre-set course" and could be curbed or extended, depending on economic conditions. In prepared testimony to the House Financial Services Committee, Bernanke said that there is no set timetable for slowing US monetary stimulus. The Fed currently buys $85 billion a month in government and mortgage bonds in an effort to stimulate economic growth.
Markets are also watching a meeting in Moscow of G20 finance ministers for signs of an orchestrated approach to the end of US money-printing, which could help resolve volatility in global markets. The G20, which meets on Friday and Saturday, includes many of the developing countries that have been at the sharp end of the dollar's surge since Bernanke first signaled the fed would roll back its bond buying in May.
European indices were trading mostly in the green. The US Futures were also trading higher.
While banning Gupta from serving as an officer or director of a public company, the SEC asked him to pay $13.9 million penalty
The US Securities and Exchange Commission (SEC) has ordered Rajat Gupta, former group director of Goldman Sachs to pay a $13.9 million civil penalty and banned from serving as an officer or director of a public company for having illegally passed corporate secrets to former hedge fund manager Raj Rajaratnam.
Gupta, 64, is appealing his June 2012 conviction and two-year prison term for having provided confidential tips he learned at Goldman board meetings during the second half of 2008 to Rajaratnam, a former billionaire who ran Galleon Group.
The tips included news about Goldman's financial results and a crucial USD 5 billion investment during the financial crisis by Warren Buffett's Berkshire Hathaway Inc.
"The sanctions imposed today send a clear message to board members who are entrusted with protecting the confidences of the companies they serve," George Canellos, co-director of the SEC's enforcement division, said in a statement.
Rajaratnam, serving an 11-year prison term, was the highest-ranking financial executive convicted in a multi-year federal crackdown on insider trading. Gupta is the highest-ranking corporate executive convicted in that probe.
Gupta is a former global managing director of the consulting from McKinsey & Co. He remains free during his appeal.
SEBI is being given more powers to regulate fraudulent activities and ponzi schemes that collect money from gullible people by giving false information
The Government has decided to come out with an ordinance to provide more powers to market regulator Securities and Exchange Board of India (SEBI) for tackling fraudulent investment activities and ponzi schemes that defraud investors.
Speaking with media, Sachin Pilot, minister for corporate affairs said, "The smallest of the investors need the most of our protection and I believe that the ponzi schemes, these chit funds that are in operation illegally, need to be put (under regulation). I think few of the amendments proposed are to be put as ordinance."
On Wednesday, the union cabinet approved the proposal to amend the SEBI Act and other relevant regulations that would give greater powers to the regulator in its efforts to tackle all kinds of money-collection schemes, as also to effectively crackdown on defaulters in the stock markets.
"SEBI is being given the authority to do much more now and take effective and quick action against non-compliant companies. The Cabinet has approved it and the Ministry of Corporate Affairs is fully supporting the efforts of SEBI," Pilot said.
Emphasising that companies raising money illegally should be prohibited, the union minister said it is important for SEBI to have enforcing ability to make sure that these companies are put an end to.
In recent times, there have been many instances such as the scam perpetrated by the Kolkata-based Saradha group that allegedly defrauded money from the public.
Besides, SEBI is expected to have powers to seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being probed by it.