Sensex, Nifty unlikely to trend down further – Monday closing report
Nifty hit a 12- day low and close in the negative for fourth consecutive session

The Indian market had a flat opening Monday after which it moved higher to hit the day’s high. However, the benchmark indices started giving in to market pressures when the news regarding the upcoming budget captured investor sentiment.
The S&P BSE Sensex opened at 25,108 and hit a high at 25,198 while the NSE Nifty opened at 7,514 and hit high at 7,535. Sensex moved lower and hit a low of 24,879 and closed at 25,031 (down 74 points or 0.30%) while the Nifty hit a 12-day low at 7,442 and closed at 7,493 (18 points or 0.24%). The NSE recorded a volume of 96.15 crore shares. India VIX rose 0.61% to close at 18.9625.
A hike in the rail passenger fare and freight rates increased the worries of a further rise in inflation.
The government will raise its import duty on sugar to 40% from 15%, as the government tries to revive business at mills that owe farmers around Rs 11,000 crore, food minister Ram Vilas Paswan said on Monday.
In the Sensex 30 pack, there were 21 stocks which gained. ONGC (4.63%) was the top gainer.
With reports that the Union Health Minister Harsh Vardhan has asked for a substantial hike in excise duty on cigarettes and other tobacco products the companies making cigarettes were affected. ITC (6.50%) was the top loser in the ‘A’ group in the BSE and also the top loser among Sensex 30 stocks. Dr Harsh Vardhan said cigarettes should carry a uniform tax of Rs. 3.5 per stick irrespective of size. Currently, duties are imposed on the basis of length of cigarette sticks.
Suzlon Energy (4.90%), among the top four gainers in the ‘A’ group on the BSE, was recently in the news after it received a notice to proceed, from CLP India, for a 100.8 MW wind power project. The project, located at Tejuva in Rajasthan, will comprise 48 units of Suzlon's 2.1 MW wind turbines.
US indices closed Friday in the positive.
Except for Nikkei 225 (0.13%) and Seoul Composite (0.35%) all the other indices closed in the red. Hang Seng (1.68%) was the top loser.
Activity in China's factory sector expanded in June for the first time in six months as new orders surged, a preliminary HSBC survey showed on Monday, offering new signs the economy is stabilising thanks to Beijing's measures to shore up growth. The HSBC/Markit Flash China Manufacturing Purchasing Managers' Index rose to 50.8 in June from May's final reading of 49.4. It was the first time since December that the PMI was in growth territory, and the highest reading since November, when it was also 50.8.
European indices were trading lower while US Futures were trading flat.



Capt Edgar Sylva

2 years ago

In a confidential manner I would like to get some advice/ information.
We have had a major problem in our Housing Society in Bandra where my son has been criminally assaulted by outsiders brought in by a member. He is still in hospital.
Problem is that the person who has instigated the trouble has been flashing a visiting card in the Police station ( to the lower rung of policemen like constables, etc) which has an Ashoka Chakra embossed on the centre with the Ministry of Social Justice & Empowerment in New Delhi on it.This has frightened the investigating level cops.
This has frightened the cops who are even refusing to accept FIR applications saying that all complaints in this matter will be covered under one FIR only though 4 have been assaulted by outsiders within our Society premises.
Can a woman who never goes out of her house except to the Gym for exercise be allowed to flash this Ashoka Chakra visiting card?
How does one find out the genuineness of such usage? her family is involved in nefarious activities including drugs, smuggling, etc so none of the neighbors are willing to fight this menace.
Can you help me; can you keep this confidential as am afraid for my aged wife, my son- daughter in law and two small grandsons.

Indian govt to hike import duty on sugar to 40%

The government also decided to extend till September the export subsidy for giving relief to the sugar industry, which owes Rs11,000 crore to cane growers largely in Uttar Pradesh

In a move that could lead to rise in the price of sugar, the Indian government on Monday decided to hike the import duty to 40% from 15% and to provide an additional interest- free loan of upto Rs4,400 crore to sugar mills for paying dues to cane growers.


At a high-level meeting convened by Food Minister Ram Vilas Paswan, it was decided that the import duty will be raised to 40% from 15%.


It was also decided that the export subsidy will be extended till September this year to give relief to the sugar industry, which owes Rs11,000 crore to cane growers largely in Uttar Pradesh.


Efforts will be made to implement mandatory 5% ethanol blending with petrol and subsequently achieve 10% blending.


The meeting held at the instance of Prime Minister Narendra Modi's direction was attended among others by Transport Minister Nitin Gadkari, Commerce Minister Nirmala Sitharaman, Principal Secretary to the PM Nripendra Misra and Cabinet Secretary Ajit Seth.


"We have taken four key decisions. We have decided to extend the interest-free loan given against excise duty paid by sugar mills for five years instead of three years," Paswan told reporters after the meeting.


Industry Body Indian Sugar Mills Association (ISMA) hailed the decision saying this will improve cash-flow of millers and help clear cane arrears.


"There is a need to improve the sugar prices to allow mills to at least cover their cost of producing sugar," ISMA Director General Avinash Verma said in a statement.



jaideep shirali

2 years ago

First onion prices, then rail fares, now sugar prices and I wait to see what goes up next in the Budget. The same BJP would have cried itself hoarse about price rise earlier, now it is doing everything to drive up inflation.Truly, achhe din aanewale hain !


suman chakraborty

In Reply to jaideep shirali 2 years ago

Let the farmers die, bcoz middle class needs cheap Sugar. Let people fall of over crowded train, but others want stagnant rail fare. God, this country stinks of Congressi dole seekers.


In Reply to suman chakraborty 2 years ago

oh hypocrisy at its finest from the Bhakts. Every year when UPA hiked train fares BJP were the first to call bandhs and block trains during protest. Where was your akal back then? Why did BJP say "Mehengai badhane waalo, junta maaf nahi karegi" in its ad? Why did BJP say "Aurto ko suraksha na dene waalo, junta maaf nahi karegi" when it has asked all its party spokesperson to defend Rape accused Nihal Chand instead of sacking him till he is proven not guilty?
Hypocrisy of the Bhakts haha

Union Budget may be more hype than matter for markets

While history suggests that the Union Budget's influence on the market's short-term performance is declining, the next Budget could still leave a trail of impact, says Morgan Stanley

Even as finance minister Arun Jaitley is busy meeting stakeholders in preparation for this years Budget, its influence on the stock market, according to history, is declining since the 1990s when it was the platform to announce reforms. "This is where this year's Budget could mark a difference from recent history. However, the market is up against really strong history," says Morgan Stanley.


According to the research note, while history suggests that the Union Budget's influence on the market's short-term performance is declining, expectations (measured by pre-Budget performance) are still important in deciding what the market does after the Budget. "If the pre-Budget returns are positive, there is a 90% chance that the post- Budget returns are negative. As the Budget is on 10th July, the index level from where pre-Budget one-month performance is being measured is 25,474. Whether the Budget proves to be an inflexion point or not only time will tell, but one thing is almost certain – the market participants will have to deal with a fair amount of volatility on Budget day," the report added.

Morgan Stanley says, 2006 was the only instance in history when both the pre- and post-Budget returns were positive. India has outperformed emerging markets (EM) on a pre- and post-Budget basis on only two occasions–2006 and 2010. Again, attributing these to the Budget may be difficult, the report said.


The upcoming Budget could be important because of where India is placed cyclically, what the mandate for the government implies, and given that this is the first non-Congress government in a decade, Morgan Stanley said.



Yerram Raju Behara

2 years ago

Budget cannot provide ready answers for legacy issues. If it broadly conforms towards reaching its promises, then post budget rally should be equally positive on the stock markets. Today's challenge is the rising oil prices in the wake of Iraq war and uncertain supplies, on one hand and the delayed if not failed monsoon leading to a dip in food and cereal crops in the next season. As a consequence the recent inflation expectation survey of the RBI could reverse getting back into the dilemma of growth versus inflation-combat.

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