Share prices may move up, subject to dips: Friday Closing Report

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.



Duraisamy P

6 years ago

Appreciable analytical note

Does SEBI really pay any heed to investors’ complaints?

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.



pawan agrawal

5 years ago

it is very amazing that magazine like moneylife is not filing criminal case against sebi

sebi is real criminal of stockmarket
and cheating with people of india


Sucheta Dalal

In Reply to pawan agrawal 5 years ago

Mr Agrawal

It is really surprising that you should even expect Moneylife magazine to file any complaint at all. Moneylife already does more than any media entity, but being strongly pro-investor at all costs and sacrificing advertising in the process.
No magazine we know of does this.

Moneylife is also the only media entity that has gone a step forward and set up an not-for-profit entity that holds seminars, sends petitions to the government and educates people on NOT investing in fraudulent companies. As a 2.5 year old entity, with meagre resources that is the best we can do.

It is for people who invested in such companies to get together to file cases against cheats. They can also work at ensuring that their friends and relatives are not cheated. One way to do it is to get them to avail of FREE membership to Moneylife Foundation and attend a few free seminars.

After all, wont people put in some time and effort to keep their own money safe?



6 years ago







6 years ago

Sebi's system of Investors complains is hopeless. It in fact just helps companies to escape complains by replying vaguely and updating the status as complain resolved. It never looks into what the investor has complained and what has been replied.The investor just is expected to keep on complaining till he compromises with his loss and stops.


6 years ago

Unsubscribed accidentally. Re-subscribing.


6 years ago

If some one knows the legal way to file complaint against SEBI, please to guide us. My complaints are too old to be taken up. But the rest of investors will be benifited. And I may need to use it in future.


pawan agrawal

In Reply to vaidya 5 years ago

file criminal case against sebi
i have already filed criminal case against sebi
i would guide you
pls send me details of your complaint

Boodugere Nagaraj

6 years ago

SEBI is least concerned about grievences of the Investor. I feel what they do when complaint is received, is to acknowedge it instantly and then throw it to garbage. That is the end of it. Nobody knows the fate of their Fixed Deposits in NBFCs which were entrusted to the Liquidators, ten years ago ! The Investors are mainly retired officials, who lost their entire life time savings. Those who are still alive say that there is nexus between Official Liquidators, SEBI and the Company Management.! A Lokayuktha like Justice Santosh Hegde has to investigate and hang these honourable criminals ! SEBI has never helped investors to get back their hard earned savings.!

Harish Bhadada

6 years ago

I also have exactly similar experience about my complaints filed with SEBI.

1st complaint was filed on 18.9.2010 against Aditya Birla Money Mart Limited for their “Birla Option Maxima” scheme. However SEBI has done nothing except forwarding complaint to BSE and NSE for investigation. Now complaint is pending with NSE and I donot know any progress inspite of reminders to NSE.

2nd complaint was filed against Fidelity Mutual Fund by E mail on 28.5.2011 for which they have sent me acknwoledgment REF.No. 2011/0025927/01 dated 24/05/2011(??) stating that they are advising converned AMC to resolve and reply directly to me with a copy to them. In case it is not resolved with in reasonable time they have a system in place for giving reminders periodically. That's all, neither AMC is bothered nor any action from SEBI

I think these companies are fully aware of SEBI working and hence not bothered for individual investor's grievances

Vikas Gupta

6 years ago

You are very right in writing that SEBI is not taking any action on the complaints received from investors through SCORES. I myself have made various complaints against Karvy MFS(R& T of UTI & Reliance Mutual Fund) in which one of its Employee has done a cheating of 420 along with all proofs with me, HDFC Mutual fund, M/S S S Corporate Securities Ltd., Delhi a Broker of NSE & BSE for auctioning my shares even after in their Dmat Account. But SEBI is not responding at all. Somebody should take come corrective measures.


6 years ago

My experience is that Sebi acts like an ordinary postman. After the complaint is files, if the person against whom the complaint is filed, reports that the complaint is resolved, that is the end of the process. It never returns to the complainant to find the facts. I have stopped reporting complaints to Sebi, long ago. I have successfully taken help of Consumer Courts


nagesh kini

In Reply to Vaidya 6 years ago

Post Offices at least render good services. Toothless our so-called regulators are. They neither can bark nor bite. At worse their concept of penalty is 'settlements' that take the accused off the hook.
The other the Regulator for Accountants, the ICAI is a shade worse. Letters/mails from members to its President are neither acknowledged nor responded. It is still mulling over action to be taken on the member who signed the Satyam accounts. He happened to be, of all things, the Chairman of the ICAI's Ethics Committee. God help such regulators!

Team Anna hits back at govt on Kejriwal issue

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.



Rambabu Shastri

6 years ago

Finally, the powerful, arrogant politicians of the Congress party have started persecution of the forces that are honest. It is the dishonest persecuting the honest for being honest. However, as always, the Congress Govt. is madly suffering from 'foot in the mouth' disease.

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