Nifty may reach the level of 5,300
Defying global events, the market notched good gains on the back of buying by institutional investors. The Nifty made a seven-day intra-day high (including today) at 5,150. The index has been able to reach at more or less the same level at which the three-day uptrend (ending 8 September 2011) was halted. If the Nifty is able to open in the positive tomorrow and is able to sustain itself above 5,169, then this uptrend may continue. Following this, we may see the Nifty reaching the level of 5,300. The National Stock Exchange (NSE) saw a volume of 53.67 crore shares traded.
The domestic market opened higher today after a 1% loss on Monday, despite a negative closing on the US market overnight and a lacklustre opening in Asian markets this morning. The Nifty added 11 points to open trade at 5,043 and the Sensex rose by 24 points to 16,769 at the opening bell. Early gains were supported by IT and consumer durables sectors.
The opening figure on the Sensex was its intra-day low, while the Nifty fell to the day's lows soon after with the index touching 5,035. Across-the-board buying pushed the indices further northwards as trade progressed. The market touched the day's high at the fag end of the trading session with the Nifty at 5,150 and the Sensex scaling 17,135. The indices closed a tad below those levels. At the close, the Nifty gained 108 points at 5,140 and the Sensex conquered the 17,000 mark again, to settle at 17,099, a jump of 354 points.
The advance-decline ratio on the NSE was 1155:525.
While the Sensex closed with splendid gains, the broader indices were a bit slow in catching up. The BSE Mid-cap index gained 0.90% and the BSE Small-cap index advanced 1.23%.
All-round buying resulted in all sectoral indices closing in the positive. The leaders were BSE IT (up 3.23%), BSE TECk (up 2.79%), BSE Consumer Durables (up 2.74%), BSE Bankex (up 2.31%) and BSE Metal (up 1.97%).
Hindalco Industries (up 4.31%), TCS (up 3.94%), State Bank of India (up 3.78%), Reliance Industries (up 3.73%) and DLF (up 3.46%) were the top gainers on the Sensex. The losers were ONGC (down 2.86%) and BHEL (down 0.81%).
Key stocks that led the Nifty higher were Reliance Capital (up 5.27%), Reliance Power (up 5.01%), Cairn India (up 4.83%), TCS (up 4.51%) and Reliance Communications (up 4.32%). The main Nifty losers were ONGC (down 2.76%), BHEL (down 0.60%), BPCL (down 0.10%), Hero MotoCorp (down 0.05%) and Ranbaxy (down 0.02%).
Markets in Asia capped their gains following news that Standard & Poor's had downgraded Italy's sovereign credit rating by a notch to 'A/A-1'. The downgrade, along with lingering fears over a potential Greek default, pulled down shares in the financial sector. This apart, a media report stated that Bank of China, a leading player in China's foreign exchange market, has stopped foreign exchange forwards and swaps trading with several European banks due to the unfolding debt crisis in Europe.
The Shanghai Composite gained 0.41%, the Hang Seng rose 0.51%, the Straits Times climbed 0.86%, the Seoul Composite advanced 0.94% and the Taiwan Weighted added 0.16%. On the other hand, the Jakarta Composite shed 0.08%, the KLSE Composite lost 0.18% and the Nikkei 225 declined 1.61%.
Back home, institutional investors-both foreign and domestic-were net sellers in the equities segment on Monday. While foreign institutional investors sold stocks worth Rs166.21 crore, domestic institutional investors offloaded stocks worth Rs37.50 crore.
Subex, a leading global provider of business support systems for communications service providers, today announced the signing of an asset purchase agreement with NetCracker for sale of its activation business. The decision to sell the activation business is an outcome of a change in the company's strategy to focus on its core products, ROC Solutions (revenue assurance, fraud management, partner settlement, data integrity management, etc) and managed services, the company said. Subex settled at Rs48.60 on the NSE, up 3.51% over its previous close.
IT services major HCL Technologies today said it will establish a software delivery centre in Dublin, Ireland, that will create 80 jobs for IT graduates over three years. With this centre, HCL will service a growing number of HCL clients and prospects in the financial services, insurance and healthcare/pharmaceutical industries. The stock jumped 2.73% to close at Rs403.05.
The Mint business newspaper reported today that the Central Bureau of Investigation (CBI) is mulling filing a case against Reliance Industries (RIL) over alleged favoured treatment for its operations of gas blocks in the Krishna Godavari (KG) basin. The agency is checking whether penalties for failing to meet commitments were reduced, if state-run companies were forced into rig-sharing arrangements favourable to RIL and whether officials favoured the company in allowing it to raise capital expenditure for the KG block. Despite the news, the stock gained 3.72% to close at Rs852.10.
While the ban on exports had an instant impact in bringing down the wholesale prices of the onions by Rs2-Rs5 per kg in Delhi, the decision had triggered protests from farmers in the key producing regions of Maharashtra and Karnataka
New Delhi: Faced with protests from farmers, the government today decided to lift the ban on onion exports. The decision to permit shipment of onions was taken by the Empowered Group of Ministers (EGoM) on Food headed by finance minister Pranab Mukherjee, reports PTI.
"Ban on onion export has been lifted," Union minister for science and technology Vilasrao Deshmukh told reporters while emerging from the meeting.
Those who attended the crucial meeting included agriculture minister Sharad Pawar and food and consumer affairs Minister KV Thomas.
The government had imposed a ban on onion exports on 9th September to check its spiralling prices which touched Rs25 a kg in retail in the national capital.
The Minimum Export Price (MEP) on onions has been fixed at $475 per tonne, the same level when the government decided to prohibit the shipment of onion, Mr Deshmukh said.
"The situation will be reviewed after a fortnight," he said.
While the ban on exports had an instant impact in bringing down the wholesale prices of the onions by Rs2-Rs5 per kg in Delhi, the decision had triggered protests from farmers in the key producing regions of Maharashtra and Karnataka.
Farmers in Nashik district and Bangalore had refused to bring their produce to markets protesting the drop in their profit level due to ban on onion export.
The farmers' agitation forced the government to take a fresh look on the onion export ban.
With the festive season travel rush now on, several websites and agents are claiming to provide confirmed rail tickets, while the individual passenger finds himself way down the waiting list, or unable to log on to the online booking site of the railways
The festive season is round the corner. Long queues at every major railway station across the country to buy tickets, is a common scene. The time is perfect for the agents and touts to raise their commission. Catching on this trend, even travel booking websites have joined the bandwagon.
A recent promotional email by travel website MakeMyTrip states that Diwali bookings are open and customers can book early to avoid the rush. It claims, "Over 8 lakh rail bookings at MakeMyTrip have many a happy customer vouching for a delightful online rail-booking experience. Our features-driven rail booking process not only makes your life easy but makes the complete booking process extremely intuitive and time saving. What's more?"
This promotional mail raises two basic issues. While many passenger find it difficult to use the railways booking site, (the pages may not be available or load in a very slow speed by which time he or she may be thrown out by the site) how can the online travel agency claims to provide 'smooth' experiences for its customers? Secondly, all the features, benefits offered by MakeMyTrip are available on the railway booking site as well, then why the travel agency is vouching to provide 'delightful online rail-booking experience' different than the railways?
In an email reply sent through a PR agency, the online travel agency, said, "MakeMyTrip does not own rail tickets or stock inventory for rail tickets, and all bookings that take place on the MakeMyTrip site are bookings made by accessing live inventory of the Indian Railways. Hence, we as a portal or as a ticketing agent do not hoard rail tickets or block inventory. If a customer books on the MakeMyTrip site, he or she will receive the same status of booking as that if the ticket was booked from IRCTC or from the railway counter itself."
It is a known fact that many passengers face issues with the railways booking site, especially during the festive seasons. People have also been complaining for a long time now that online ticket booking, especially 'tatkal', is harassment. There is one or another issue that customers face while booking tickets on the website of the Indian Railway Catering and Tourism Corp (IRCTC). Under the tatkal scheme, bookings open at 8am, two days before the actual date of the journey.
Experts say it is a known fact that many agents are hand-in-glove with officials who give them tickets immediately as the windows open, leaving individuals very little or no tickets at all. Now, the rapid expansion of such ticket-booking websites will make it more difficult for individuals to book tickets. And the situation will become even worse for tatkal booking. Also, if a person wants to book online, the IRCTC portal can be used instead of using ticket-booking websites.
Recently, the Indian Railways announced that it was launching a new e-ticketing service that would be reserved for individual users only and would not be open to travel agents. Also, IRCTC has said that it has blocked over 4.5 lakh user IDs, most of them agents, who were found to be violating the rules.
Consumer discussion forums on the internet are flooded with complaints about the tatkal system. People say they are either unable to access their account on IRCTC despite using the correct username and password, or are simply unable to access the website during the scheduled time. (Read, 'Is IRCTC deliberately overlooking complaints about the tatkal scheme?')
Moneylife has consistently maintained that the current tatkal system is being gamed by touts and agents and that all the seats vanish, no sooner the tatkal reservation window opens. Therefore, travellers are unable to book the tickets on their own and they have to depend on these agents who charge higher rates and commissions.
Moneylife has reported that MakeMyTrip had advertised that it was the 'fastest' in booking tatkal tickets. (Read, 'Can makemytrip.com make its customer's day?')