Nifty should close strongly above 6,740 for any upmove
We had mentioned in Monday’s closing report that NSE 50-share Nifty has to close above 6,715 to regain strength. On Tuesday, although the index managed to open above this level, it edged higher in first few minutes of trading only to edge lower before closing marginally below than the aforesaid level. Positive economic data from the US played on the market sentiments.
The S&P BSE 30-share Sensex opened at 22,512 and hit a high of 22,603 while falling to 22,476 before closing at 22,508 ( up 63 points or 0.28%). Nifty opened at 6,719 and moved in the range of 6,702 and 6,743 before closing at 6,715 (up 16 points or 0.24%). The NSE recorded a low volume of 57.21 crore shares.
Initial public offering (IPO) market in India may not revive this year unless the country sees a more sustained economic recovery, National Stock Exchange CEO Chitra Ramkrishna told media on Tuesday.
India's economy will likely make a gradual recovery this year, helped by a rebound in capital investments as well as a pick-up in private consumption, but rising bad loans at its banks threaten to choke the recovery, the OECD said on Tuesday. In its latest economic outlook, OECD said growth in India may edge up to 4.9% in calendar year 2014 from 4.5% a year earlier and accelerate further to 5.9% in 2015. The estimates are predicated on hopes of an upturn in capital investments after an ongoing national election and a boost in consumption driven by slowing inflation.
Reliance Industries (RIL) and ONGC had on 28th March agreed to appoint neutral international expert to decide if four wells drilled on boundary of KG-D6 block were drawing gas from neighbouring gas discoveries of the state-owned firm. However now RIL has proposed joint studies before an international expert is roped in. RIL was the top gainer in the Sensex 30 pack.
Airtel, Vodafone and Idea Cellular had approached TDSAT against Department of Telecom order to stop 3G intra-circle roaming agreement under which they had also agreed to acquire customers in area where they did not win spectrum. After telecom tribunal TDSAT upheld their plea to provide 3G intra-circle roaming services, Airtel on Sunday announced the resumption of its 3G services in eight circles. In a statement, the service provider said 3G roaming services would now be available in Haryana, Maharashtra, Goa, Kerala, MPCG (Madhya Pradesh, Chhatisgarh), Gujarat, Kolkata and UP (east) from Monday. However Bharti Airtel was the top loser in Sensex 30 stock.
Gujarat Electricity Regulatory Commission (GERC) has allowed power tariff hike on the consumers in Ahmedabad, Gandhinagar and Surat effective from May 1. In its order on Monday, the GERC stated that it has allowed an increase of average 44 paise (Re0.44) per unit to the private power producer, Torrent Power Ltd. This will result in the annual burden of Rs449 crore on the consumers in the three urban centres. The tariff increase includes the increase in fixed charges and energy charges. Torrent Power was the top gainer in ‘A’ group on the BSE.
Canara Bank was the top loser among the ‘A’ group of the BSE, following weak March quarter results.
US indices closed in the positive on Monday. The Institute for Supply Management's US services sector index rose to 55.2 in April, the fastest pace in eight months.
Except for Shanghai Composite (0.03%), Straits Times (0.12%) and Taiwan Weighted (0.47%) all the other Asian indices trading today closed in the red. NZSE 50 (0.49%) was the top loser.
European indices were trading in the red while US Futures were trading marginally higher.
The apex court ruled that the state has no power to compel linguistic minority to impart primary education by compulsorily imposing regional language
The Supreme court on Tuesday held that the government cannot impose mother tongue on linguistic minority for imparting primary education.
"State has no power to compel linguistic minority to impart primary education by compulsorily imposing regional language," a five-judge Constitution Bench headed by Chief Justice RM Lodha said.
The bench, comprising justices AK Patnaik, SJ Mukhopadhaya, Dipak Misra and FMI Kalifulla, was hearing the issue about two orders issued by the Karnataka government making mother tongue or regional language compulsory for imparting education from class I to IV.
In July last year, a two-judge bench of the Supreme Court had said its Constitution Bench will examine whether government can impose mother tongue or regional language as the medium of instruction at the primary education stage as it has a far-reaching significance on the development of children.
The court, which was of the opinion that it was a fit case for consideration by a larger bench, had said that the issue involved in this case concerns the fundamental rights of not only the present generation but also the generations yet to be born.
It had said that the issue had to be referred to a larger bench as a two-judge bench of the Court in 1993 had refused to interfere with a Karnataka government order specifying mother tongue Kannada as the medium of instruction at the primary school level and making it mandatory for every child.
The Supreme Court said, Section 6A of the DSPE Act, which requires government's nod for offences under the Prevention of Corruption Act to make inquiry against officer of the rank of joint secretary and above, is invalid and violative of Article 14 of the Constitution
The Supreme Court on Tuesday held as invalid and unconstitutional the legal provision, which makes sanction of competent authority mandatory for the Central Bureau of Investigation (CBI) to probe a corruption case against an officer of joint secretary-rank or above, saying it has the propensity of shielding the corrupt.
A five-judge Constitution bench headed by Chief Justice RM Lodha delivered the judgement after examining Section 6A of the Delhi Special Police Establishment Act (DSPEA), which protects top bureaucrats from being investigated in corruption cases without prior approval.
"We hold Section 6A of the Act, which requires Central Government's approval for the offences under the Prevention of Corruption Act (PCA) to make inquiry against officer of the rank of joint secretary and above, as invalid and violative of Article 14 of the Constitution," the bench, also comprising justices AK Patnaik, SJ Mukhopadhaya, Dipak Misra and FMI Kalifulla, said.
It said there cannot be any classification of officers for the purpose of inquiry of offence under the PCA.
"The corrupt public servants, higher or lower in rank, are the birds of same feather and have to be dealt with equally," the court observed.
Maintaining that "corruption is an enemy of nation", the bench said that it is difficult to make classification of officers in graft cases as it is against the mandate of the PCA.
It said that the prior approval under Section 6A would result, indirectly, in halting the investigation and if the CBI is not allowed to carry on the preliminary inquiry how the investigation can proceed.
"We are of the view that there can be no distinction between certain class of officials for inquiry of the offences under the PCA.
"How can the status of officials be of any relevance in the offence under PCA and any distinction by way of Section 6A of the DSPEA makes it violative of Article 14," the bench said, adding that the protection as provided in Section 6A has the propensity of shielding the corrupt.
The court said there cannot be any exemption from equal treatment and any official facing allegations of corruption has to be treated with the same process of inquiry.