Nifty may find its first support at 5,175 and then at 5,115. A close above any previous day’s high is needed for a change of trend
The market settled lower for the third straight day on investors’ disappointment with the Budget, which saw realty, power and capital goods sectors ending as the biggest losers in trade today. The Nifty closed at 5,257, its lowest in the past seven days (including today) on a volume of 66.09 crore shares on the National Stock Exchange (NSE), which was below its 10-day average. From here we may see the index finding its first support at 5,175 and then at 5,115. However, if any day the benchmark closes above the previous day high we may see the trend changing.
The market opened flat as the Budget unveiled by the finance minister on Friday was seen as a disappointment by investors. This was further highlighted by global ratings agency Moody’s which said that the Budget is credit negative for government and mixed for banks and corporates. The Nifty opened 19 points higher at 5,337 and the Sensex gained 65 points over its previous close to resume trade at 17,531.
However, selling pressure soon pushed the indices into the negative for a short while after which select buying resulted in the benchmarks emerging into the green and touching their intraday highs. At the highs, the Nifty rose to 5,341 and the Sensex went up to 17,561.
The gains were temporary as the market fell on selling pressure in capital goods, PSUs, metal and oil & gas sectors. The losses expanded as trade progressed and the negative opening of the key European indices added to the woes. The market touched intraday low around 2.10pm with the Nifty falling to 5,239 and the Sensex going back to 17,226.
A minor recovery from the lows saw the market close off the lows, but in the red for the third day in a row. The Nifty fell by 61 points to settle at 5,257 and the Sensex declined 193 points to close the session at 17,273.
The advance-decline ratio on the NSE was 497:1194.
Among the broader indices, the BSE Mid-cap index declined 0.96% and the BSE Small-cap index dropped 1.08%.
BSE Fast Moving Consumer Goods (up 1.09% and BSE Healthcare (up 0.03%) were the sectoral gainers while the losers were led by BSE Realty (down 2.56%); BSE Power (down 2.23%); BSE Capital Goods (down 2.14%); BSE Bankex (down 1.95%) and BSE PSU (down 1.74%).
ITC (up 2.01%); Mahindra & Mahindra (up 1.74%); Sun Pharma (up 1.68%); Hindustan Unilever (up 0.72%) and Hindalco Industries (up 0.53%) were the top Sensex gainers. The top losers on the index were BHEL (down 4.84%); TCS (down 3.86%); State Bank of India (down 3.07%); Tata Power (down 3.03%) and Reliance Industries (down 2.21%).
The top performers on the Nifty were M&M (up 2.01%); Cairn India (up 1.97%); ITC (up 1.92%); Sun Pharma (up 1.70%) and ACC (up 1.49%). Reliance infrastructure (down 6.53%); IDFC (down 5.01%); BHEL (down 4.70%); Reliance Power (down 3.91%) and Jaiprakash Associates (down 3.88%) settled at the bottom of the index.
Markets in Asia closed mixed on dismal reports from China. Media reports indicated that advances by Chinese banks fall short of their quarterly targets. Also, residential property prices in China’s major cities fell in February following curbs initiated by the government. However, despite the depressing news, the Chinese benchmark ended higher.
The Shanghai Composite rose 0.23%; the KLSE Composite gained 0.14%; the Nikkei 225 added 0.12% and the Seoul Composite advanced 0.62%. On the other hand, the Hang Seng declined 0.95%; the Jakarta Composite shed 0.09%; the Straits Times dropped 0.68% and the Taiwan Weighted lost 0.14%. At the time of writing, the key European markets were trading with losses in the range of 0.50% to 0.72% and the US stocks futures were lower.
Back home, foreign institutional investors were net buyers of shares totalling Rs883.58 crore on Friday while domestic institutional investors were net sellers of stocks amounting to Rs770.39 crore.
Bullish on its product engineering services (PES) business, integrated technology and operations firm iGATE Patni expects nearly 25% of its overall revenues to come from the segment in the next two to three years. The stock gained 0.33% to close at Rs500.15 on the NSE.
Jet Airways, India's premier international airline, as part of a strategic rebranding exercise, will consolidate its low fare service products under the Jet Konnect brand to simplify the group’s service proposition and enhance brand recall. Thus, effective 25th March, the erstwhile JetLite and Jet Airways Konnect services will operate under the Jet Konnect brand, enabling guests to avail of a single superior in-flight product in the full service (Jet Airways) and low-fare (Jet Konnect) categories. The stock gained 0.75% to settle at Rs321.45 on the NSE.
Karur Vysya Bank has signed an agreement with Ashok Leyland for financing the latter’s new medium and heavy commercial vehicles. As per the deal, the bank will finance 85% of the on-road cost of the vehicle at a concessional rate of interest and flexible repayment terms. This would be available to educational institutions and transport operators. The bank stock dropped 1.07% to close at Rs371 on the NSE.
As the financial year end comes to an end, several authorities have woken up and have started issuing letters and warrants to collect taxes, which the taxpayer has to pay within hours
Citizens receiving demand letters from government authorities in March every year is nothing new. However, Powai-based Eden Bungalows Co-operative Housing Society (CHS) got a shock when the tahsildar of that area issued a warrant and asked them to pay Rs3.36 lakh within 48 hours as dues for non-agricultural (NA) tax.
According to experts, every year, the authorities, under pressure to “achieve targets” of ‘collection’ take the gullible citizens for a ride and send notices demanding crores of rupees as dues. Most of the times a ‘compromise’ is reached. The notices are being issued as per the provisions of Section 180 and 181 of the Maharashtra Land Revenue Code and warrant of attachment related provisions are initiated as per the provisions of Maharashtra Land Revenue Code 1966, Section 168 to 173, 174, 179 and 184.
In case of Eden Bungalows CHS, the notice is issued with an increased rate as well. The rate has been increased by 19 times to Rs9 per square metre from 48 paise a metre. That too, without informing the society about the changes in tax rates, said Eden Bungalows CHS in its reply.
According to the petition, the builders (Hiranandani Developers) did not provide any copies of communication between the developer and government authorities. “The only act that has been done with lightning speed by the builder’s office is accompanying the government official to individual societies to deliver the 48 hours’ notice. My clients have reasons to believe that (Transfer of Development Rights or TDR) worth crores of rupees is being misused by the builder which legally belongs to the co-operative societies,” a reply from the society says.
Eden Bungalows CHS had also appealed the municipal commissioner, not to approve any TDR of any nature whatsoever for the society without its written consent. The society has also requested the police to file a first information report (FIR) against Hiranandani Developers for failing to execute the conveyance within four months from the date of formation of the society.
EAS Sarma, former power and finance secretary in his letter to the prime minister accuses significant concessions being given to power companies at the expense of consumers
EAS Sarma, former power and finance secretary has written to prime minister Manmohan Singh pointing out the dangerous and unprofitable fallout of the proposed waiving of the 5% customs duty on imported coal. Defining the move as “a post-tender dole-out to benefit large private power companies”, he has urged the government to consider and inform the people of the serious implications of the Budget decision.
“I wish to caution the government on this. The finance minister should announce that the entire benefit that flows from this generous customs duty exemption will be passed on to the consumers,” he wrote. He says that this is “another scam in the making”, and explained, “Unless the government makes it mandatory for those companies to pass on the consequential benefit to the consumers over and above the fixed tariffs quoted by them on their own, it would amount to a fairly significant post-tender largesse being passed on to those companies on a silver platter. The amount involved on that account would run into thousands of crores of rupees and all that would flow out of the pockets of the Indian taxpayers into the pockets of the private power developers”.
This is not the first time that Mr Sarma has written to the government on the issue of private power developers. He has sent many letters earlier and has alleged that the process of signing power purchase agreements (PPAs) is opaque and fraudulent, and that the ministers concerned are all party to it. Mr Sarma said that most private power companies have got environmental clearances for their projects via dummy coal linkage.
Most of these private thermal power companies, Mr Sarma says, have invested illegally in coal mines and shipping contracts abroad and they send the money through dubious routes to fund their domestic operations. Mr Sarma had written to the Cabinet secretary earlier urging an inter-departmental team to investigate the issue. Read more at Former top bureaucrat alleges fraud in grant of environment clearances for private power projects
Referring to his earlier correspondence with the Centre, Mr Sarma wrote, “I referred specifically to the ‘fixed’ tariffs quoted by several large private thermal project developers and cautioned the government not to reopen the PPAs already finalized on that basis.”
In an earlier letter, written in January, Mr Sarma had said, “Once power tariffs are decided on the basis of a competitive bidding procedure, to reduce the import duty on coal or allowing the bidders to migrate to a lower tariff regime would amount to a huge amount of unearned concession handed over to the private players. The UPA government which is already muddled in several scandals will surely get involved in yet another scam of a similar magnitude.”