If the Nifty manages to close above 5,965, we may see a few days of gains
The market snapped its three-day losing streak and closed marginally higher on gains in oil & gas and realty sectors. If the Nifty manages to close above 5,965, we may a few days of gains. The National Stock Exchange (NSE) recorded a higher volume of 50.77 crore shares and advance-decline ratio of 668:693.
The market opened lower as the RBI on Tuesday said that is plans to take early actions against the banks whose officials were caught in a sting operation. Weak global cues also weighed on investor sentiments. Asian markets were in the red in morning trade after Japanese prime minister Shinzo Abe’s plan to up special economic zones to attract foreign businesses failed to enthuse investors. US market fell in overnight trade on concerns of the Federal Reserve’s move.
The Nifty opened 11 points down at 5,908 and the Sensex resumed trade at 19,532, a cut of 14 points from its previous close. Intense selling in capital goods, consumer durables, IT and fast moving consumer goods sectors led the benchmarks to their lows in the first hour itself. At the lows, the Nifty fell to 5,984 and the Sensex dropped to 19,441.
Meanwhile, the HSBC/Markit purchasing managers’ index for the services industry inched up to 53.6 in May, pointing to a solid expansion in output, one that was the fastest in three months. The index had registered 50.7 in April.
The market made a laboured attempt to emerge into the green in mid-morning trade but sellers outnumbered buyers and pushed the indices lower again.
The benchmarks gained momentum in noon trade on buying in select blue chips. But the indices were hovering near their previous closing levels in the second half of the trading session.
The market hit its intraday high shortly after 2.00pm with the Nifty rising to 6,015 and the Sensex inching up to 19.604.
Among the broader indices, the BSE Mid-cap index added 0.06% and the BSE Small-cap index rose 0.12%.
The top sectoral gainers were BSE Oil & Gas (up 1.77%); BSE Realty (up 1.35%); BSE Metal (up 0.40%); BSE PSU (up 0.33%) and BSE Capital Goods (up 0.31%). The main losers were BSE IT (down 0.76%); BSE TECk (down 0.59%); BSE FMCG (down 0.50%) and BSE Consumer Durables (down 0.45%).
Out of the 30 stocks on the Sensex, 18 settled higher. The top gainers were Reliance Industries (up 2.56%); ONGC (up 1.95%); Sun Pharmaceutical Industries (up 1.91%); Hindalco Industries (up 1.34%) and Maruti Suzuki (up 1.28%). The major losers were Wipro (down 1.59%); Infosys (down 1.32%); HDFC (down 1.23%); ITC (down 0.93%) and Bharti Airtel (down 0.69%).
The top two A Group gainers on the BSE were—Reliance Communications (up 5.29%) and Oracle Financial Services Software (up 5%).
The top two A Group losers on the BSE were—Jain Irrigation (down 5.95%) and Cadila Healthcare (up 4.42%).
The top two B Group gainers on the BSE were—Rishiroop Rubber International (up 20%) and JRG Securities (up 20%).
The top two B Group losers on the BSE were—Splash Media and Infra (down 19.96%) and Vision Cinemas (down 19.91%).
Of the 50 stocks on the Nifty, 28 ended in the in the green. The main gainers were IL (up 2.79%); DLF (up 2.67%); ONGC (up 1.82%); Hindalco Ind (up 1.78%) and Sun Pharma (up 1.69%). The key losers were Ambuja Cement Company (down 1.72%); Infosys (down 1.32%); HDFC (down 1.31%); ACC (down 1.24%) and HCL Technologies (down 1.06%).
The market continued to trade sideways and settled with a marginal gain, snapping its three-day losing streak.
The Nifty gained four points to 5,924 and the Sensex closed at 19,568, up 22 points.
Markets across Asia settled lower after the Japanese prime minister’s plan to boost the economy failed to boost investor sentiment. Worries about the US Fed’s move to trim its stimulus initiative also added to the woes.
The Shanghai Composite shed 0.07%; the Hang Seng dropped 0.97%; the Jakarta Composite declined 0.41%; the KLSE Composite fell 0.13%; the Nikkei 225 tanked 3.83%; the Straits Times contracted 1.46%; the Seoul Composite lost 1.52% and the Taiwan Weighted settled 0.11% down.
At the time of writing, the key European markets wee in the red as investors reacted to services PMI data for various countries in the region. At the same time, US stock futures were lower, indicating a negative opening for US stocks later in the day.
Back home, foreign institutional investors were net buyers of stocks totalling Rs84.79 crore on Tuesday whereas domestic institutional investors were net sellers of shares aggregating Rs216.45 crore.
Ruchi Soya Industries, India’s leading food and agro-based FMCG player, has inked a joint venture with J-Oil Mills Inc and Toyota Tsusho Corporation (TTC), both from Japan. The move is aimed at launching a super premium edible oil brand in India.
Under the terms of agreement, a joint venture company would be formed soon by the probable name of Ruchi J-Oil in which Ruchi Soya would have a majority stake of 51%. While J-Oil, the technology partner in the joint venture, would have 26% stake with the remaining 23% proposed to rest with TTC. Ruchi Soya gained 2.31% to close at Rs68.60 on the NSE.
State-run Gujarat Industries Power Company (GIPCL) has issued letter of intent to Lanco Infratech for implementing a 600 MW lignite-based power project at Mangrol near Surat on engineering, procurement construction (EPC) basis. The project, which is an expansion of GIPCL’s existing lignite-based power project Surat Lignite Power Plant (SLPP), is expected to be commissioned by the third quarter of 2016-17. Lanco Infratech declined 1.10% to close at Rs8.95 on the NSE.
Tata Power today said funds have been tied up for the 135 MW Amakhala Emoyeni wind project worth over Rs2,262 crore in South Africa. The project of approximately Rand 3,945 million is being funded through a debt equity mix of 80:20. Tata Power rose 0.11% to close at Rs89.15 on the NSE.
The services sector which accounts around 60% of the India's GDP expanded largely driven by higher levels of new work placed at private sector firms in India, an HSBC survey said on Wednesday
India’s services sector activity expanded in May and the pace was the fastest in three months, driven by uptick in new orders, an HSBC survey said on Wednesday.
The HSBC/Markit purchasing managers’ index for the services industry inched up to 53.6 in May, pointing to a solid expansion in output, one that was the fastest in three months. It had registered 50.7 in April.
A reading above 50 shows expansion while a reading below 50 shows that the output in the sector is contracting.
The services sector which accounts around 60% of the India's GDP expanded largely driven by higher levels of new work placed at private sector firms in India.
“Service sector activity picked up pace in May led by firmer order flows. Moreover, companies were more optimistic about the domestic and global economic outlook,” HSBC chief economist for India & ASEAN Leif Eskesen said.
The level of positive sentiment was at a five-month high. Services firms expect that better economic conditions combined with increased marketing and the introduction of new services will lead to higher customer numbers.
The growth in the services sector contrasted with a fall registered in manufacturing output, the first decline in 50 months.
Earlier this week the HSBC/Markit manufacturing PMI showed that the manufacturing sector output fell in May, its first decline since March 2009, as order flow weakened and power outages affected the sector.
Accordingly, the HSBC India Composite Output Index, which maps both services and manufacturing activity, posted 52 in May, up from 50.5 in April.
“The latest reading signalled the fastest increase in business activity since February, but a rate of growth that remained historically muted,” HSBC said.
India’s economic growth rate slipped to a decade low of 5% in 2012-13 on account of poor performance of farm, manufacturing and mining sectors.
Eskesen further said that “notwithstanding the uptick in growth, inflation gauges eased further on the back of strong competition and moderating cost pressures. With growth still moderate and inflation softening, the probability of another RBI rate cut has increased.”
Meanwhile, overall employment growth across the Indian private sector was slight and unchanged from April. Slight rises were signalled in both the manufacturing and service sectors.
Various officers of the Delhi Municipal Corporation colluded to ensure that an illegal construction can continue and the PIO provided the information only during the hearing before the CIC. This is the 107th in a series of important judgements given by former Central Information Commissioner Shailesh Gandhi that can be used or quoted in an RTI application
The Central Information Commission (CIC), while allowing an appeal, issued show-cause notices to executive engineers at the Municipal Corporation of Delhi (MCD), for colluding to deny information to the applicant. The Commission also came to the conclusion that prima facie it appears that the information had been delayed with malafide intention to ensure that an illegal construction can continue.
While giving this judgement on 14 May 2010, Shailesh Gandhi, the then Central Information Commissioner said, “The Commission also feels that there is malafide intention in doing this hence they will show cause why disciplinary action against them should not be recommended as per Section 20(2) of the RTI Act.”
New Delhi resident Raj Kumar Sharma, on 23 October 2009, sought information regarding construction of an illegal building from the Public Information Officer (PIO) at the office of superintending engineer in MCD. Here is the information he sought under the RTI Act and the reply provided by the PIO...
1. With regard to property no. 536, 200 square feet area, has anybody taken no-objection certificate (NOC) after depositing map for construction?
PIO's reply: No
2. Photocopy of the documents for construction for which permission has been taken.
PIO's reply: No
3. If permission has not been taken with regard to property no. 536, then will the newly constructed building be demolished and when will it be demolished?
PIO's reply: Information is provided through RTI with regard to property no. 536. Investigation is being done. If it is found illegal, necessary action will be taken.
4. How many constructions are being done without map or permission?
PIO's reply: No such record is available in the office.
Not satisfied with the reply, Sharma then filed his first appeal. In his order the First Appellate Authority (FAA) directed the PIO to furnish specific reply on the questions to the applicant within three weeks.
Since the PIO did not provide required information within the time frame, Sharma then approached the CIC with his second appeal.
During the hearing before Mr Gandhi, the then CIC, the appellant stated that he had complained about an illegal building being constructed in October 2009 and submitted the RTI Application in 2009 hoping that MCD would take some action.
“In a modus operandi that has been perfected by certain MCD officers a reply was given that no plan has been approved and some inquiry will be done if there is any illegal construction in progress," he alleged.
The PIO defied the order of the FAA and did not provide the information. The information was brought by the PIO and given to the appellant before the Commission. The PIO stated that the illegal construction has been booked under the Delhi Municipal Corporation Act (DMC Act).
When Mr Gandhi asked the PIO when the property was booked, he informed the Commission that it was booked on 13 May 2010 i.e. the day before the hearing. The appellant stated that the construction is going on and yet MCD officers had refused to stop it.
Mr Gandhi noted that it was evident that this could not have been possible without the actual collusion of various MCD officers. “The Commission only has its jurisdiction on the supply of information and the Commission comes to the conclusion that the delay in providing the information is clearly due to malafide intention and collusion between the various officers,” he said.
“The delay in providing the information, the defiance of the order of the FAA and booking the illegal construction just one day before the hearing before the Commission indicates prima facie a collusion by the officers to support the cause of illegal construction,” the CIC said.
While allowing the appeal, Mr Gandhi then issued a show-cause notice to PK Chauhan, JE, then Executive Engineer RS Gupta, Rajbir Kundu, AE, PR Meena, present EE since January 2010 and PIO AK Mittal, SE (during November 2009 to 8 February 2010) as to why penalty under Section 20(1) should not be imposed on them for colluding to deny information to the appellant.
CENTRAL INFORMATION COMMISSION
Decision No. CIC/SG/A/2010/000810/7724
Appeal No. CIC/SG/A/2010/000810
Appellant : Raj Kumar Sharma
New Delhi - 15
Respondent : NC Sharma
Public Information Officer & SE
Municipal Corporation of Delhi
O/o Superintending Engineer,( Rohini -1)
Sector - 5, Rohini,
Delhi - 110085