A minor rally possible if Monday’s low holds and Nifty stays above 5,320
Recovering from the steep losses seen yesterday, the market opened higher tracking a firming trend in the exchanges across Asia, on easing of the Greece debt situation. The Sensex opened 67 points higher at 17,574 and the Nifty was at 5,281, up 23 points.
Investors resorted to bargain hunting, taking the indices higher, but news that state-owned explorer ONGC is looking to rope in a foreign partner in its eastern offshore gas block pulled the market lower. At the day's low, the Sensex fell below its previous close at 17,504 and the Nifty was at 5,257.
The market recouped its losses somewhat, as banking, oil & gas and metals helped the market climb to its intra-day high in noon trade. The Sensex gained 208 points at 17,715 and the Nifty added 64 points to 5,322. But selling took over again and the Sensex eventually closed up 54 points at 17,560 and the Nifty settled at 5,275, up 18 points.
We mentioned in Monday's closing report that the index should hold on to its Monday's low for some stability. The Nifty's intra-day high was close to its first support of 5,370. For a minor rally to happen, the Nifty has to remain above 5,320, from where it can target to reach 5,440.
The advance-decline ratio on the National Stock Exchange was 541:848.
The broader markets underperformed the Sensex today with the BSE Mid-cap index declining 0.21% and the BSE Small-cap index losing 0.43%.
In the sectoral space, BSE IT (up 1.16%), BSE Oil & Gas (up 0.90%) and BSE TECk (up 0.89%) were the noteworthy gainers. On the other hand, BSE Realty (down 1.78%), BSE Capital Goods (down 0.67%) and BSE Fast Moving Capital Goods (down 0.61%) settled at the bottom of the index.
Markets in Asia finished higher on the easing of Greece debt tensions, but investors were cautious ahead of the two-day Federal Open Market Committee meeting set to begin tonight. While the European Union and the International Monetary Fund will do their best to save the debt-ridden Mediterranean nation from default, the government also faces a crucial confidence vote today.
Meanwhile, the recent slowdown on account of the rate-tightening measures by the Chinese central bank is likely to put pressure on banks that provided loans as part of the stimulus programme, following the global economic crisis in 2008.
The Shanghai Composite advanced 1.01%, the Hang Seng surged 1.16%, the Jakarta Composite jumped 1.76%, the KLSE Composite added 0.10%, the Nikkei 225 climbed 1.13%, the Straits Times rose 1.32%, the Seoul Composite was up 1.41% and the Taiwan Weighted rose 0.78%.
Back home, foreign institutional investors were net sellers of stocks worth Rs512.57 crore on Monday, while domestic institutional investors were net buyers of equities worth Rs863.31 crore.
News reports suggest that ONGC is in talks with the BG Group and Italian petroleum major Eni for developing its gas block in the eastern offshore. The state-owned exploration major is likely to offer up to 30% stake in the block to the foreign partner. The company's stock fell to Rs255.75, down 0.14% on the Bombay Stock Exchange today.
An RTI applicant sought to know the reason why Mr Raja was kept in the Cabinet despite serious allegations of corruption against him. The information was denied to him by the PMO saying it does not have any record relating to allegations of corruption against the former telecom minister
New Delhi: The Central Information Commission (CIC) has directed the Prime Minister's Office (PMO) to make public 'charges of corruption' levelled against former telecom minister A Raja along with views of various officials on them expressed in the form of file notings, reports PTI.
The case relates to an RTI applicant seeking to know the reason why Mr Raja was kept in the Cabinet despite serious allegations of corruption against him.
The information was denied to him by the PMO saying it does not have any record relating to allegations of corruption against Mr Raja, who was arrested by the Central Bureau of Investigation (CBI) in connection with alleged graft in the award of telecom spectrum during his tenure.
"The appellant has framed his queries in Hindi and his queries are a mix of allegations and his desire for what the nation should be. The Commission has reframed his queries and after discussions with the appellant the reframed query in his application is being given to the PIO," information commissioner Shailesh Gandhi pointed out.
Mr Gandhi directed the PMO to provide "attested copies of records regarding charges of corruption against A Raja and copies of file notings or correspondence of the PMO in this regard" before 10th July.
The CBI had told the special court that there was evidence of 'forgery' in altering of first-come-first-serve policy to allow some companies to get second generation (2G) spectrum during Mr Raja's tenure.
Mr Raja who was arrested by the CBI on 2nd February in connection with corruption in the award of scarce telecom spectrum is still in judicial custody.
'Triggers' will help banks and NBFCs by providing an automated daily notification about changes in a particular customer's financial situation, after which the lenders can take necessary action to minimise bad debt or increase the customer's revenue potential and retention
Experian India, a joint venture between UK-based Experian Plc and seven domestic lenders, on Tuesday launched 'Triggers', a unique product that would help lenders with quick and accurate information about a consumer's credit activity.
"This is the first time that a credit bureau is offering a daily alert mechanism to Indian lenders. According to our global experience, 'Triggers', is more used by lenders to control defaults and not to re-sell any product to the consumer," said Phil Nolan, managing director, Experian India.
'Triggers', which was launched today, helps banks and non-banking financial institutes (NBFCs) by providing an automated notification about changes in a customer's financial situation after which the lenders can take necessary action to minimise bad debt or increase the customer's revenue potential and retention.
"The Indian credit industry is in a high growth phase. With growth, however, comes risk, so it is essential that banks and NBFCs have a much clearer understanding of their existing customers' credit exposure with other lending institutions, any changes in their repayment behaviours and indeed if they are actively seeking new lines of credit," Mr Nolan explained.
In view of the rising interest rates in the county, even the Reserve Bank of India (RBI) has been asking banks to increase their loan monitoring mechanism for early detection of building up of stress. A report from the Press Trust of India quoted RBI deputy governor KC Chakrabarty as saying, "We are telling the banks to improve their risk management capabilities to manage the possible deterioration in asset quality because of high interest rates."
In a recent survey titled, 'Who is the typical fraudster', KPMG said frauds take longer to detect in Asia as compared to anywhere else in the world. "Companies are too focused on the front end (growing the business) rather than the back end (the support functions) so red flags get ignored or treated as one-offs. When frauds blow up, it's typically several years down the line, when the value of the deception has multiplied and all the warning signs have been missed," said Rohit Mahajan, executive director for forensic services, KPMG India.
Experian's 'Triggers' works on three types of events: collection, risk and activity."The collection triggers identify early delinquency signals and prioritise collections, the risk triggers manages risk via immediate identification and early notification, and the activity triggers monitor account activity to formulate account level strategies," said Mohan Jayaraman, chief operating officer, Experian India.
According to Mr Jayaraman, banks and NBFCs will supply them a portfolio of their existing customers to be monitored. Once selected, the credit bureau then can configure the triggers to suit business requirements of the lender and can deliver daily alerts based on the monitored customers. For example, if Mr X, a customer of ABC Bank is seeking credit from EFG Bank, which is also the member of the credit bureau, this will create an alert for ABC Bank, which can take necessary steps either to reduce its risks or offer similar product to Mr X.
While 'Triggers' would help lenders to cut down credit risks on existing customers, it would also help both the lender and the customer to grow in mutual relation. If the customer is a defaulter, then after receiving the 'trigger', the lender can reduce or cut down its exposure. Similarly, a good (non-defaulter or regular) customer can also demand better rates and services from his existing lender, if he is offered products for which he had approached other lenders.
Experian India said that at present one of its existing partners, Axis Bank, and one of its clients, Fullerton India Credit Co Ltd, have chosen 'Triggers'. In a statement, Jairam Sridharan, senior vice-president and head of consumer lending and payments, Axis Bank, said, "The launch of 'Triggers' represents a new dimension in account management for the Indian banking industry. The daily notifications will help Axis Bank in expanding its share of wallet, managing risk exposure and delinquency management."
Experian Credit Information Co of India, or Experian India, is a joint venture between Experian and Axis Bank, Punjab National Bank, Union Bank of India, Indian Bank, Federal Bank, Sundaram Finance and Magma Fincorp. Currently, the credit bureau offers its services to over 150 members, including banks and NBFCs.