Nifty may go up to 5,200 in the best case scenario
The stock market rose for a third straight day on Friday to close the truncated trading week on a positive note, after five consecutive weeks of losses, this despite continuing negative news.
Today's intra-day high on the Nifty of 5,065 crossed the 5,060 mark, which we had mentioned in our Tuesday's closing report. The benchmark is likely to see its first resistance at 5,100.
If the trend of making a new high in the current upmove continues, we may see gains of up to 5,200. The National Stock Exchange (NSE) saw a volume of 46.84 crore shares, which was below its 10-day moving average of 59.68 crore shares.
Refreshed after a two-day holiday, the domestic market brushed aside weak economic indicators and lower Asian markets to open in the positive. Oil & gas, banking, healthcare and auto sectors saw good buying in early trade, supporting the gains.
Late morning, food inflation figures for the week ended 20th August jumped into double digits at 10.05%, up from 9.80% in the previous week. Also, factory output as measured by the HSBC Manufacturing PMI fell to 52.6, in August, its slowest pace since March 2009.
The benchmarks witnessed a gradual upmove to touch the intra-day high in noon trade. The Nifty climbed to 5,065, while the Sensex rose to 16,902. However, profit booking at higher levels resulted in the indices paring all gains in post-noon trade and touching their previous closing levels. At the day's low, the Nifty was at 4,993 and the Sensex dropped to 16,688.
However, the market bounced back after that, closing higher for a third consecutive day. The Nifty settled 39 points up at 5,040 and the Sensex finished 145 point higher at 16,821.
The advance-decline ratio on the NSE was 1050:677.
Among the broader indices, the BSE Mid-cap index closed 0.81% higher, while the BSE Small-cap index added 0.03%.
BSE Metal (up 2.75%) was the leader in the sectoral space. It was followed by BSE Consumer Durables (up 2.19%), BSE Oil & Gas (up 2.16%), BSE Auto (up 2.09%) and BSE Realty (up 1.73%). But the BSE IT (down 1.31%), BSE Power (down 0.97%), BSE TECk (down 0.53%) and BSE Capital Goods (down 0.14%) indices all settled lower.
DLF (up 5.93%), Tata Steel (up 4.26%), Sterlite Industries (up 4.04%), Mahindra & Mahindra (up 3.87%) and Bajaj Auto (up 3.21%) were the main Sensex gainers. The major losers on the index were Tata Power (down 2.13%), TCS (down 1.82%), BHEL (down 1.74%) and NTPC (down 1.56%).
The major gainers on the Nifty were Reliance Capital (up 7.50%), Reliance Communications (up 6.85%), DLF (up 6.68%), Tata Steel (up 5.11%) and Sterlite Industries (up 4.24%). HCL Technologies (down 3.39%), IDFC (down 3.25%), Siemens (down 2.14%), Tata Power (down 2.05%) and TCS (down 1.76%) were the index losers.
Markets in Asia settled lower ahead of key US jobs data and speculation over China continuing with its tight monetary policy. Exporters declined on fears that a negative jobs report would dent sales.
The Shanghai Composite declined 1.09%, the Hang Seng tanked 1.81%, the Nikkei 225 fell 1.21%, the Straits Times slipped 0.84%, the Seoul Composite lost 0.69% and the Taiwan Weighted shed 0.01%. Bucking the trend, the KLSE Composite gained 0.85%.
Back home, institutional investors-both foreign and domestic-were net buyers of equities on Tuesday. Foreign institutional investors were buyers of stocks worth Rs620.90 crore, while domestic institutional investors purchased shares worth Rs101.91 crore.
The Anil Ambani group firm Reliance Power has received a Rs400 crore loan from the US Export-Import Bank for a 40MW solar plant in Rajasthan. The company is developing the country's largest solar photo voltaic (PV) project with a 40MW generation capacity, which is scheduled to be commissioned by March 2012. The stock lost 0.53% to close at Rs84.40 on the NSE.
Pharma major Dr Reddy's Laboratories (DRL) today said it has started the phase-II study in Europe to test the safety and efficacy of its 'DRL-17822' molecule, to treat coronary heart disease. Three human phase-I studies (on a select small human sample) with the molecule have already been conducted in Europe, where it was shown to be safe and well-tolerated, the company said. The stock closed at Rs1,509.50, up 0.90% on the NSE.
Shipments of India's second-largest cement maker ACC, rose in August by 19.75% to 1.88 million tonnes, compared to 1.57 million tonnes a year ago. The company, in which Swiss cement maker Holcim holds about 46% stake, said production in August rose by 20.51% to 1.88 million tonnes from 1.56 million tonnes a year ago. ACC rose 0.92% to Rs1,012 on the NSE today.
Despite repeated persuasion, investors’ complaints filed with the market regulator either remain unheard, or are disposed off with vague replies. Moneylife has had a personal experience of this
For some years now, Moneylife has heard from investors and has been writing that the market regulator, the Securities and Exchange Board of India (SEBI) functions more like an 'in and out' mail system, especially in dealing with investor complaints and grievances redressal. Although SEBI claims to respond to complaints and give a registration number, investors say that the market regulator does nothing in terms of redressal. Moneylife has had a similar experience recently.
On 26 July 2011, Moneylife sent an e-mail regarding Gujarat-based NMart Retails, which collects money from people under the pretext that they are purchasing vouchers of its retail store. It also promises a smart card, credit facility and loyalty bonus of Rs11,000 after staying/shopping with NMart for 48 consecutive months.
Experts say that the activities of the company have features of a Collective Investment Scheme (CIS), specified under section 11 of the SEBI Act read with regulation 3 of the SEBI (CIS) Regulation. Accordingly, we asked SEBI if the company had obtained a certificate of registration to run the CIS and if not, what action SEBI was planning against the company.
There was neither any reply from SEBI, nor even a simple acknowledgement. Then on 26th August we received a letter dated 30th July from SEBI which said that the complaint is not under its purview and that the appropriate authority should be contacted in the matter.
It is interesting to note that the reply did not give any explanation as to why the issue does not come under SEBI's purview, or mention any details or reference of the complaint, which is usually done in formal letters. In addition, the e-mail was sent by Moneylife's deputy editor, but SEBI addressed its reply to Moneylife Foundation, which is a not-for-profit affiliate of Moneylife. We are also wondering, what took the letter over 26 days to reach our office at Dadar, which is only a 20-minute drive from the SEBI headquarters at Bandra-Kurla Complex, in suburban Mumbai.
Moneylife has been regularly writing about SEBI's hands-off approach on complaints and investors' grievances. (Read, 'Investor interest: SEBI's hands-off approach'.) SEBI has also introduced a new high-cost complaints redressal system called SCORES (SEBI Complaints Redressal System), which is a "web-based centralised system for the speedy redressal of grievances" that was launched in the last few days of the tenure of former chairman CB Bhave. (Read, 'Complaints redressal: SEBI's high cost experiment'.)
According to a comment posted by a reader on our website, SEBI has told him that it does not have an investor grievances redressal system. The reader says, "In a reply to my RTI application, SEBI had informed that there is no Investor Grievances Redressal System in SEBI. There is only Investor Complaints facilitation centre. It does not guarantee redressal of investor complaints. It also stated that investor should file their complaints in a court of law for redressal. So what happened to SEBI's role as protector of investors' rights? In fact, SEBI Mutual Fund refused to examine my complaint and give its ruling, when the mutual fund (company) failed to resolve a complaint of misconduct and negligence in handling an additional purchase transaction resulting in loss of NAV (net asset value) and dividends."
In one of our earlier articles, an investor commented: "If inspite of making (filing) many complaints SEBI is not taking any action against Compact Disc India, a BSE listed company, for non-payment of declared dividend for past two years and making many bogus announcements such as share buyback for delisting, big contracts, etc, then what investor protection can SEBI do?"
Another comment reads: "My case against ICICI Bank is pending with SEBI since the past eight years and they have done nothing but acknowledging. The same case forwarded by the RBI and me four times, but nothing has been done. Even recent letters to chairman has not produced any results."
This attitude of the regulator has taken a toll on India's investor population. Moneylife has repeatedly pointed out that India's investor population has declined from 20 million in 1992 (according to official reports) to just eight million (equity and mutual funds), according to the D Swarup Committee report 2009.
Emphasising that he has not violated any rules, Arvind Kejriwal said government has powers to waive 'violations' if it is in public interest. He claimed that the then CBDT chairman had written in the report that his works were in public interest and his case should be waived
New Delhi: With the Income Tax (I-T) office slapping a notice on activist Arvind Kejriwal to pay dues, Team Anna Hazare today alleged that the government was back to its 'dirty tricks department' and that the officials were pressurised by 'political bosses' to act against them, reports PTI.
Other than the I-T office's notice to Mr Kejriwal to pay dues of Rs9.27 lakh, Team Anna also referred to a Delhi Police report which said a CD purported to contain conversation between lawyer Shanti Bhushan and political leaders was genuine. Notices for breach of privilege have also been moved in Parliament against Kiran Bedi.
The office of the chief commissioner of Income Tax had on 5th August had issued a notice to Mr Kejriwal, an Indian Revenue Service (IRS) officer, asking him to pay up, 11 days ahead of Mr Hazare's fast demanding a strong Lokpal.
"This shows that the government has not learnt any lessons. The smear campaign is still on... There is a notice against Arvind. Delhi Police has closed the investigations in the CD case saying the disc was genuine. There is also a privilege notice against Ms Bedi.
"They are back to dirty tricks. They are back to the dirty tricks department," lawyer and Team Anna member Prashant Bhushan told a press conference along with Mr Kejriwal and Ms Bedi here.
Chief commissioner of Income Tax issued notice to Mr Kejriwal to clear the dues alleging that he violated the bond clauses under which he went for a study leave for two years.
Mr Kejriwal claimed he 'did not violate' any bond provision and he resigned from the job after the stipulated three years of rejoining duty after study leave.
On the privilege notice, Ms Bedi said she will not apologise and would say, "I am sorry I will not say sorry to you. I will show a bigger mirror to them on what is happening in our Parliament and assemblies."
"It is not the I-T Department's decision. They are doing what the government is saying. The IT officials have no role in this notice. They are doing because of the pressure from the political bosses," Mr Kejriwal said.
Mr Kejriwal said he had taken a study leave on full pay for two years from 1 November 2000 and he rejoined office on 1 November 2002 after signing a bond that he would refund the salary if he resigns or retires or fail to resume duty within three years of his study leave.
"I have not violated any provisions. What government is saying is wrong. After over one year of rejoining, I took leave without pay which was sanctioned by my superiors. I worked for RTI. I was not into any wrongdoings. I have not signed any bond that I will not take leave after rejoining.
"The government it seems is trying to interpret that the leave which I took after rejoining violates bond provisions.
Taking leave is a right and the government has sanctioned it," he said.
Emphasising that he has not violated any rules, he also said government has powers to waive 'violations' if it is in public interest. He claimed that the then CBDT chairman had written in the report that his works were in public interest and his case should be waived.
However, other senior officials were not in favour of such waiver.
He also questioned the timing of the issuance of notice to him, just 11 days ahead of Mr Hazare's agitation for which he played a prominent role.