Sensex, Nifty will struggle to rally – Friday closing report
For the current rally to end, the the indices must close below any previous day’s low
Although the Indian market opened Friday in the negative follwing a sharp fall in the US markets, it showed an upward bias. Marching up for almost the entire session the indices kept up the trend of closing in the positive for the fourth consecutive session.
S&P BSE Sensex opened at 25,558 while NSE’s CNX Nifty opened at 7,630. Immediately both the indices hit the low of 25,441 and 7,596. By the end of the session the benchmarks hit the day’s high at 25,713 and 7,685 and closed at 25,642 ( up 80 points or 0.31%) and 7,664 (up 23 points or 0.31%), respectively. The NSE recorded a volume of 86.06 crore shares. India VIX rose 0.87% to close at 15.0950.
The highlight of the day was the draft regulations for infrastructure investment trusts by the Securities and Exchange Board of India (SEBI) and draft guidelines issued by the Reserve Bank of India (RBI) for those seeking a license to set up a payments bank or a small bank.
To provide easier financing options to developers of public works infrastructure investment trusts, regulated by SEBI, would be formed. Such trusts will be able to invest in infrastructure projects only directly or through special purpose vehicles (SPVs). For public-private partnership (PPP) projects, investments can be routed only be through an SPV, SEBI said.
The RBI in its guidelines said among other things that the minimum paid up capital required for both categories of bank licenses would be Rs100 crore of which the promoter would have to contribute at least 40% initially. Payments banks can accept deposits and remittances of funds but cannot provide loans. Small banks can lend, but have more limited areas of operations than a full-fledged commercial lender.
Tata Consultancy (2.58%) was among the top two gainers in the Sensex 30 pack. The company posted a net profit of Rs5,096.87 crore for the quarter ended June 2014 as compared to Rs3,461.89 crore for the quarter ended June 2013. Revenue has increased from Rs14,478.65 crore to Rs17,438.43 crore for the relevant period.
Tata Power (2.58%) was the top loser in the Sensex 30 stock. Tata Power foresees growth of India’s power sector to be affected adversely due to various reasons which includes, insufficient availability of coal, costlier imported fuel, delays in land acquisition and environmental clearances.
Exide Industries which recently hit its 52 week high on the BSE on 7 July 2014 was the top gainer (4.07%) in the ‘A’ group on the BSE.
Indian Hotels (down 6.96%) was the top loser in the ‘A’ group on the BSE.
US indices closed in the negative on Thursday following the crash of Malaysian Airliner brought down by Ukranian rebels.
Asian indices showed a mixed performance. Jakarta Composite (0.31%) was the top gainer while Nikkei 225 (1.01%) was the top loser. European indices were trading lower while US Futures were trading marginally higher.


No decision on FDI in multi-brand retail trading yet

The Modi government has reiterated that FDI up to 100% is permitted in single brand retail trading and no decision on FDI in multi-brand retail trading has been taken


The Indian government on Friday said it has not taken any decision on permitting foreign direct investment (FDI) in multi-brand retail trading.


Nirmala Sitharaman, minister for commerce and industry, in a written reply to the Lok Sabha, said, "As per the extant FDI policy, FDI up to 100% is permitted in single brand retail trading. No decision on FDI in multi-brand retail trading has been taken".


As per the current policy, 51% FDI is permitted in multi-brand retail trading. When the United Progressive Alliance (UPA)-led government announced the policy, the Bharatiya Janata Party (BJP) had strongly opposed.


Sitharaman, after assuming the office, had indicated that foreign players will not be allowed to open mega stores in the country, saying that FDI in multi-brand retail trade will adversely impact small traders and farmers.


There have been speculations however that the government would not roll back the policy and leave it to the states to implement it.


Till now, British retail major Tesco's plan has been approved by the previous government to enter the sector.


Replying to another question on FDI in e-commerce, the minister said that during April 2000 and April 2014, India has received $37.1 million FDI in the sector.


"As per extant FDI policy, FDI up to 100% under the automatic route is permitted in B2B e-commerce activities. The present policy does not permit retail trading in any form, by means of e-commerce, for companies with FDI engaged in the activity of single/ multi brand retail trading," she said.




shadi katyal

3 years ago

India needs investment in all sectors and would it not be better that GOI should take her hands off such investments and let the market economy take care of it and it will provide employment for many.

I listened to Mr. Jaitley on Defense and policy is same that with 49% raised from 29% foreign manufacturers should open factories in India and transfer technologies. What a dream when they have enjoyed 100% buying by India.
Let these firms come with their 100% investment and let them sell their shares to Indians in due course. Otherwise nation will always be dependent on foreign supplier as not much is devoted to R&D in Defence but 200 Crores for a statute which could have waited when nation starts flourishing.

Disclosure norms for alternative investment funds eased by SEBI

SEBI said disclosure with regard to 'disciplinary history' for AIFs would be applicable in those cases, where monetary penalty of more than Rs5 lakh is being levied


Market regulator Securities and Exchange Board of India (SEBI) on Friday revised certain guidelines with regard to 'disciplinary history' of the alternative investment funds (AIFs).


AIFs are basically funds established, or incorporated in India, for the purpose of pooling in capital from Indian and foreign investors for investing as per a pre-decided policy.


SEBI said all AIF have to disclose the 'disciplinary history' of the fund, its sponsor, manager, directors, partners, promoters and associates for the last five years.


These funds are required to provide details of pending and past cases (where the person has been found guilty) of litigations, criminal or civil prosecution, disputes and non-payment of statutory dues, among others.


Besides, SEBI said that such disclosure would be applicable in those cases, where monetary penalty of more than Rs5 lakh is being levied.


"With respect to disputed tax liabilities, the same shall not apply to liabilities in personal capacity of an individual. Contingent liabilities shall be as disclosed in books of accounts of the entity," SEBI said in a circular.


Currently, there is no specific time-frame mentioned for disclosing 'disciplinary history' of the fund.


Besides, SEBI has extended the deadline for sending the AIF's placement memorandum, which consists of details of disciplinary actions of the funds till 31st August from 19th July.


Further, the market regulator had said any change in placement memorandum to all would be intimated to investors and to SEBI once every six months on a consolidated basis, as against the current practice of seven days.


Under SEBI guidelines, AIFs can operate broadly in three categories. The SEBI rules apply to all AIFs, including those operating as private equity funds, real estate funds and hedge funds, among others.


The Category-I AIFs are those funds that get incentives from the government, SEBI or other regulators and include Social Venture Funds, Infrastructure Funds, Venture Capital Funds and SME Funds.


The Category-III AIFs are those trading with a view to making short-term returns and these AIFs include hedge funds, among others.


The Category-II AIFs can invest anywhere in any combination but are prohibited from raising debt, except for meeting their day-to-day operational requirements. These AIFs include private equity funds, debt funds or fund of funds, as also all others falling outside the ambit of two other categories.


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