Share prices may not record significant gains immediately: Friday Closing Report

Sensex and Nifty will remain listless

The local market opened with decent gains on support from the global arena following easing of crude prices. Banking, auto, metal and capital goods counters witnessed good demand, which contributed to the early gains. A gradual slippage was noticed after the indices touched their intra-day highs in initial trade. The market touched the neutral line a little after 2pm, but bounced back with the indices trading in a narrow range and closing almost unchanged from the Thursday's close.

Yesterday, we had mentioned that the market had rallied strongly for four days (ending 3rd March) and that it is expected to pause now. Today, both the indices ended flat. The Sensex closed three points down at 18,486, while the Nifty finished just three points up at 5,539.

The Sensex opened with a positive gap of 133 points at 18,623, thanks to a huge rally in the US overnight, followed by an equally strong rally in Asia this morning, and the Nifty opened 50 points up at 5,586. Both benchmarks managed to keep the trend of a higher high and a lower low for the fourth consecutive day. The intra-day highs were 18,737 and 5,608 respectively. Towards the end of the trading session both the indices hit their intra-day lows of 18,449 and 5,524 but recovered to close flat. The advance-decline ratio on the National Stock Exchange was 876:791.

In line with the flat closing, the market breadth on the Sensex and Nifty was almost equal. The Sensex had 16 declining stocks, 13 advancing stocks and one stock remained unchanged. The 50-share Nifty had 24 gainers, an equal number of losers and two stocks were unchanged. The broader indices underperformed the Sensex today. The BSE Mid-cap index closed 0.10% lower, while the BSE Small-cap index fell by 0.26%.

The BSE Bankex (up 0.53%), BSE Auto (up 0.44%) and BSE IT (up 0.31%) were the top gainers in the sectoral space. BSE Capital Goods (down 2.06%), BSE PSU (down 0.25%) and BSE Metal (down 0.19%) were the major losers.

Tata Power (up 2.27%), Hero Honda (up 2.15%), Bajaj Auto (up 2%), HDFC (up 1.63%) and Reliance Infrastructure (up 1.38%) were the top performers on the Sensex. Larsen & Toubro (down 3.08%), Jaiprakash Associates (down 2.04%), BHEL (down 1.94%), TCS (down 1.37%) and Bharti Airtel (down 1.19%) were the laggards on the benchmark.

The government has sought Parliament's nod for the sanction of an additional Rs79,590 crore to meet extra expenses related to oil and fertiliser subsidies during the current fiscal, over and above the funds allocated earlier.

The enhanced expenditure includes additional Rs21,000 crore for compensating oil marketing companies, Rs9,000 crore for meeting the defence pension bill and Rs8,000 for fertiliser subsidies, among others.

Markets in Asia finished the day with good gains on optimism that the global recovery will hold, side-stepping the turmoil in West Asia. However, worries about spiralling crude prices kept investors guarded.

The Shanghai Composite gained 1.35%, the Hang Seng rose 1.24%, the Jakarta Composite surged 1.38%, the KLSE Composite advanced 1.04%, the Nikkei 225 gained 1.02%, the Straits Times was up 0.79%, the Seoul Composite jumped 1.73% and the Taiwan Weighted closed 0.53% higher today.

Meanwhile, crude oil for April delivery rose 94 cents to $102.85 a barrel in electronic trading on the New York Mercantile Exchange and it was at $102.66 in Singapore. On Thursday, the contract slipped 32 cents, or 0.3%, to $101.91, the first decline in three days.

Brent crude for April settlement was at $115.85, up $1.06, on the London-based ICE Futures Europe exchange. It slid $1.56, or 1.3%, to $114.79 yesterday.

Back home, institutional investors, both foreign as well as domestic, were net buyers of stocks on Thursday. While FIIs pumped in funds worth Rs229.02 crore, DIIs bought equities worth Rs95.52 crore.

Onco Therapies, the wholly-owned subsidiary of Strides Arcolab (up 4.40%) has received the European Union's (approval for Carboplatin 10 mg/ml in the first wave covering select European countries. This is the first European approval out of 22 filings made by the OTL in the year 2010 for products which have a combined market value of over $5 billion. The product will be manufactured at Strides' oncology complex in Bangalore which received approval from European regulatory authorities in June 2010.

Cairn India (up 0.31%) is planning to commence production from the Bhagyam oil field, its second biggest oil field in the Rajasthan block, in the second half of 2011. The commencement of this production will take the total output to 1,75,000 barrels per day (bpd).

The Bhagyam oil field is targeted to produce a peak output of 40,000 bpd by year end which would help the company achieve the approved peak output of 1,75,000 bpd.

Power equipment maker, BGR Energy Systems' (up 0.67%) environment engineering division has secured two orders worth Rs30 crore from UAE-based Power Infrastructure (LLC) to design, engineer, manufacture, supply and commission two condensate polishing units for Adani Power's upcoming super power projects at Tiroda in Maharashtra (2x660 MW) and Kawai in Rajasthan (2x660 MW).


PC Chacko appointed chairman of JPC on 2G scam

The JPC, having 20-members from the Lok Sabha and 10 from the Rajya Sabha, came into being a few days back, ending three-months of deadlock in Parliament between the government and the opposition, which latched on to a report of the CAG which spoke of a presumed loss of Rs1.76 lakh crore

New Delhi: Senior Congress member PC Chacko on Friday was made the Chairman of the Joint Parliamentary Committee (JPC) on the 2G spectrum issue, setting in motion the probe into what the opposition is alleging as the biggest scam in independent India, reports PTI.

Mr Chacko, aged 65, who represents Thrissur in Kerala in the Lok Sabha, was appointed the head of the 30-member high-level panel by Speaker Meira Kumar, Parliamentary Affairs Minister Pawan Kumar Bansal said.

The JPC, having 20-members from the Lok Sabha and 10 from the Rajya Sabha, came into being a few days back, ending three-months of deadlock in Parliament between the government and the opposition, which latched on to a report of the Comptroller and Auditor General (CAG) late last year which spoke of a presumed loss of Rs1.76 lakh crore. The two Houses of Parliament have passed resolutions approving the setting up of the JPC.

A Raja was forced to quit in November as Telecom Minister in the wake of the CAG report and is currently lodged in Tihar jail after being questioned by the CBI. Government says that Raja was being prosecuted for the possibility of criminal culpability.

The JPC will examine irregularities and aberrations, if any, in the implementation of government decisions and policy prescriptions on telecom licences and spectrum from 1998 to 2009. The panel will also make recommendations to ensure appropriate procedures for allocation and pricing of telecom licences. It will examine policy prescriptions and their interpretation by successive governments, including the decisions of the Union Cabinet and the consequences thereof, in the allocation and pricing of licences and spectrum.

The Government had agreed to the JPC after the Opposition threatened to disrupt the Budget session of Parliament as well, after almost the entire winter session was washed out.



NSE shareholder seeks buyers for up to 5% stake

IDBI Capital, which has been tasked by an NSE shareholder to find prospective buyers for the stake asked the interested parties to submit their bids by 11th March

NEW DELHI: A major shareholder of leading stock exchange, National Stock Exchange (NSE), is looking for buyers to sell up to 5% stake, estimated to be worth about Rs1,000 crore, reports PTI.

IDBI Capital, which has been tasked by an NSE shareholder to find prospective buyers over the next one week, said that it is seeking bids for "sale of equity shares not exceeding 5% of the total equity share capital of the National Stock Exchange of India Ltd."

However, IDBI Capital did not disclose details like name of its client, exact number of shares and price being sought by the unnamed NSE shareholder.

As per the last major dealing in NSE shares, which occurred late last year valuing the bourse at more than $4 billion (over Rs18,000 crore), a 5% stake in the country's biggest stock exchange could be in the vicinity of Rs900-Rs1,000 crore.

IDBI Capital, which has asked the interested parties to submit their bids by 11th March, also said that NSE itself is not a party to the proposed transaction.

However, NSE would have a right to approve or reject any transfer of shares, it added.

When contacted, NSE officials also said that they had no role in any stake transfer between different investors.

IDBI Capital said that the buyer could be a foreign institutional investor (FII), a resident Indian individual investor or any other domestic entity.

While name of the shareholder wanting to sell NSE stake could not be ascertained, sources said that the investor might be an FII and could decide to sell its holding due to a proposed regulatory move to bar bourses from getting listed.

A high-profile panel, set up by the Securities and Exchange Board of India (SEBI), late last year recommended that the stock exchanges should not be allowed to list and their profits should also be capped.

The recommendations, on which SEBI is yet to take a final call, have created an impression that investing in stock exchanges is no longer a value proposition for FIIs, which consider listing as a good exit opportunity for their investments, market sources said.

Various private sector entities from India and abroad together hold nearly half the equity in NSE, while the remaining stake is owned by public sector banks, financial institutions and insurance companies.

In November 2010, Financial Technologies, which has floated a new stock exchange MCX-SX rivalling NSE, announced sale of its 4.4 lakh shares in National Stock Exchange for a price of Rs3,800 per share, aggregating to Rs167.2 crore.

These shares accounted for less than 1% stake of NSE and the deal is said to have valued the bourse at over $4.5 billion.


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