Nifty to trade between 4,830 and 4,915
Optimism in the global arena following successful bond auctions in Spain and Italy eased some concerns in Europe and helped most Asian markets see gains. The Indian market also cheered the outcome, but pared some of its gains in late trade. Since the past four days (including today) the Nifty almost reached its second level of resistance, however, it was not able to maintain itself above that level. Today the index rose on a huge volume of 83.27 crore shares on the National Stock Exchange (NSE). From here we may see the benchmark making a range-bound move between 4,830 and 4,915.
Supportive cues from the global area helped the domestic market open higher today. Markets in Asia were mostly in the positive following the European Central Bank’s decision on Thursday to keep interest rates unchanged and good response to the Spanish and Italian bond auctions. Back home, the Nifty gained 31 points to resume trade at 4,862 and the Sensex opened at 16,145, up 107 points over its previous close. Across-the-board buying by institutional investors supported early gains.
A minor bout of profit taking in late-morning trade saw the indices dip to their intraday lows. At the lows, the Nifty fell to 4,834 and the Sensex went back to 16,050. But select buying pushed the market higher in subsequent trade.
Buying interest in metal, capital goods and realty sectors and a positive opening of the European indices enabled the market hit its intraday high around 1.50pm. At the highs, the Nifty touched 4,899 and the Sensex scaled 16,257.
The market pared some of its gains in post-noon trade but ensured a green close. At the end of trade, the Nifty settled 35 points higher at 4,866 and the Sensex gained 117 points to 16,155.
The advance-decline ratio on the NSE was 1248:586.
The broader indices outperformed the Sensex today as the BSE Mid-cap index climbed 1.14% and the BSE Small-cap index surged 1.44%.
The key gainers in the sectoral space were BSE Metal (up 3.21%); BSE Capital Goods (up 2.86%); BSE Power (up 2.39%); BSE Realty (up 2.12%) and BSE PSU (up 1.55%). BSE Consumer Durables (down 0.40%); BSE Oil & Gas (down 0.38%) and BSE IT (down 0.04%) settled lower.
Tata Steel (up 7.11%); Coal India (up 5.56%); Larsen & Toubro (up 3.84%); NTPC (up 3.11%) and Jindal Steel (up 3.07%) topped the Sensex list. GAIL India (down 3.19%); Bajaj Auto (down 2.96%); Maruti Suzuki (down 1.79%); Hero MotoCorp (down 1.25%) and Sun Pharma (down 1.18%) were the main losers.
The Nifty was led by Reliance Power (up 7.22%); Tata Steel (up 6.97%); Reliance Communications (up 6.34%); Coal India (up 5.02%) and NTPC (up 3.51%). The main losers on the index were GAIL (down 3.27%); Bajaj Auto (down 3.09%); Maruti Suzuki (down 1.91%); HCL Technologies (down 1.79%) and Sun Pharma (down 1.73%).
Markets in Asia, with the exception of China and Taiwan and Malaysia, closed with gains on the last trading day of the week on optimism from Europe after a positive response to the government bond auctions in Spain and Italy on Thursday.
The Hang Seng rose 0.57%; the Jakarta Composite advanced 0.66%; the Nikkei 225 surged 1.36%; the Straits Times jumped 1.75% and the Seoul Composite climbed 0.60%. Among the losers, the Shanghai Composite declined 1.34%; the KLSE Composite fell 0.16% and the Taiwan Weighted shed 0.07%. At the time of writing, the key European markets were trading with gains of 0.36% to 0.93% and US stock futures were trading higher.
Back home, foreign institutional investors were net buyers of shares totalling Rs506.80 crore on Thursday. On the other hand, domestic institutional investors were net sellers of equities aggregating Rs996.91 crore.
Wind turbine maker Suzlon Energy today said its German subsidiary REpower has signed a contract to supply 10 wind turbines to England-based RWEnpower Renewables for the Bradwell wind farm. The turbines, with an output of 2.05 MW each, will generate enough electricity to power the equivalent of nearly 12,000 homes annually, Suzlon said in a statement. The stock jumped 9.93% to close at Rs22.70 on the NSE.
Glenmark Pharmaceuticals today said an arbitration panel in the US has granted an interim order prohibiting Napo Pharmaceuticals from terminating their collaboration agreement for diarrhoea drug Crofelemer till the panel decides the arbitration. Glenmark gained 3.26% to close at Rs314 on the NSE.
Diamond Power Infrastructure, an integrated player in the power equipment and EPC segment, on Friday said that it has received orders totalling Rs48.30 crore for supply of 108 power transformers to diverse customers. The stock advanced 5.12% to settle at Rs110.90 on the NSE.
Noting that retirement and pension money is not coming to the market, SEBI Chairman UK Sinha wondered why asset management companies (AMCs) are not launching funds aimed at attracting pension money
Mumbai: Market regulator Securities and Exchange Board of India (SEBI) today said fund houses should launch pension products, so that retirement money can be brought into the capital market, reports PTI.
Noting that retirement and pension money is not coming to the market, SEBI Chairman UK Sinha wondered why asset management companies (AMCs) are not launching funds aimed at attracting pension money.
“Retirement and pension money is not coming into the market. It is legally possible that retirement money can be invested in the markets ... why are AMCs not able to launch pension funds?” Mr Sinha said at India Investment Conference here.
“We are passing through very difficult times. Margins and volumes and flow of fresh money are coming down. What you do in such a situation? We need to start taking measures,” Mr Sinha said, adding that level of participation in the markets by households is very low.
In future, Mr Sinha said, SEBI will be regulating alternative investments. “Currently we are looking at regulations on distributors and investor advisers.”
About 50% of mutual fund business is done through distributors who are not regulated at all, he said.
On the proposed new IPO norms, Mr Sinha said, “We are looking at a review of the entire IPO process, as to who would participate, and in what manner and how to reduce the timelines.”
Replying to query on insider trading norms, Mr Sinha said, “We will take strict action against market manipulators.”
Experts have called for more transparency in the entire process of testing and advocated testing of milk on a continuous basis
The recent survey on milk adulteration conducted by the Food Safety and Standards Authority of India (FSSAI) found that 68% of the tested samples did not conform to the set standards while some also contained detergent. Experts however feel that findings were expected and the survey has nothing new to offer. They called for more transparency in the entire process of testing and advocated testing of milk on a continuous basis.
Pritee Shah, chief general manger, Consumer Education and Research Centre (CERC) and Editor of Insight , a consumer magazine, seconds the view. “There has to be mechanism for constant inspection. The checks and balances should be clearly defined. The survey itself shows that most of the samples were loose samples. So consumers should prefer packaged milk. When we had tested milk at CERC, it showed that packaged milk is better compared to loose.”
She adds, “Sometime back the health minister (MoS) Dinesh Trivedi had said cattle are injected with Oxytocin, a prescription drug, to boost milk production. Such milk would be harmful for our health. So there is clear need to conduct regular testing and inspections of milk.”
AR Shenoy, Mumbai-based consumer activists says that, “The findings are an open secret and are not new. What is the point in conducting a survey once in a year? Milk as a commodity is used on a daily basis, so there has to be continuous surveillance. The whole process has to be transparent with details like how and were the samples drawn? What is the peripherally used to test? What is the qualification of the person conducting the testing? The mechanism has to be overhauled.”
The survey was conducted across India, with total of 1,791 samples drawn from 33 states and Union Territories, to identify common adulterants like urea, detergent, skimmed milk powder, hydrogen peroxide, starch, etc. Out of the total tested samples, the FSSAI found 68.4% samples non-conforming to set standards of which 46.8% were deficient in fat and solid no-fat content (SNF) and 44.69% had skimmed milk powder (SMP). Detergent was found in 8.4% of the total samples.
Taking suo moto cognizance of the news reports on adulterated milk in the National Capital Region, the Delhi High Court (HC) issued a notice to Delhi government and the Centre seeking their responses.
According to Ms Shah, consumer themselves should also be more educated and proactive in registering complaints. “Urban consumers have a misconception that packaged milk contains milk powder and preservatives and hence they go for local dairy milk, which is often adulterated with water. Consumers should also be proactive in complaining, on finding sour or spoiled milk—either packaged or loose, to a local food inspector or to any consumer organization. This is will help in curbing this menace by forcing the dairy owners to adhere to the set standards.”
“There is need for regular monitoring and awareness among the people. The new Food Safety and Standards Act, 2011 has a provision for summary trials where regular tests can be conducted,” V Sudershan Rao, a food safety expert at the National Institute of Nutrition, Hyderabad, said.