Nifty’s range remains between 5,160 and 5,325
The market, which started the day in the positive, gave up its gains in the early trade itself and was range-bound till the end of the session. Lack of any domestic triggers ensured a flat close. Last week we had mentioned that the Nifty would move in the range of 5,160 and 5,310. The index had a close brush with the upper level and ended in positive at 5,289 (up five points). We may still see that range continuing. Today’s marginal gain was on volume of 45.67 crore shares on the National Stock Exchange (NSE).
The Indian market opened marginally in the green after an extended weekend on positive sentiments in the global arena. Wall Street closed higher amid a choppy session as investors were tracking the developments in Italy. Similarly, the Asian pack was mostly up in morning trade, giving a boost to the market here. The Nifty opened eight points up at 5,292 and the Sensex started trade at 17,594, a gain of 31 points over its previous close on Friday.
The benchmarks hit the day’s high in the first 15 minutes itself with the Nifty going up to 5,304 and the Sensex touching 17,632. However, profit booking at higher levels resulted in the market paring its early gains and entering the negative territory around 10am.
The indices continued to trade sideways in the red in the absence of any domestic trigger. The market fell to the day’s low in the pre-noon session with the Nifty falling to 5,252 and the Sensex going back to 17,455.
Select buying, which resumed in noon trade, helped the indices move higher. However, the market was listless in subsequent trade and witnessed a flat close. At the end of trade, the Nifty gained five points at 5,289 and the Sensex settled at 17,570, up seven points.
The advance-decline ratio on the NSE was 803:880.
Among the broader indices, the BSE Mid-cap index rose 0.21% while the BSE Small-cap index lost 0.17%.
The BSE Consumer Durables index (up 0.94%) was the top gainer in the sectoral space. It was followed by BSE Oil & Gas (up 0.20%); BSE Power (up 0.19%); BSE Capital Goods (up 0.15%) and BSE Bankex (up 0.14%). The noteworthy losers were BSE Realty (down 1.38%); BSE Healthcare (down 0.51%) and BSE Auto (down 0.08%).
State Bank of India (up 1.70%); Tata Motors (up 0.82%); Hindalco Industries (up 0.47%); Sterlite Industries (up 0.45%) and Hindustan Unilever (up 0.42%) were the major gainers on the Sensex. The losers were led by Sun Pharma (down 2.05%); DLF (down 1.76%); Cipla (down 1.43%); NTPC (down 1%) and Jaiprakash Associates (down 0.88%).
The Nifty movers were Cairn India (up 5.11%); Reliance Communications (up 4.50%); Reliance Infrastructure (up 3.96%); Reliance Power (up 3.06%) and SBI (up 1.77%). BPCL (down 3.33%); Sun Pharma (down 2.81%); IDFC (down 2.79%); HCL Technologies (down 2.52%) and DLF (down 2.40%) settled at the bottom of the index.
Markets in Asia were mixed as a surge in Italian bond yields sparked fresh concerns that the country could face problems in raising funds even as Greece is working towards selecting a new leader. Meanwhile, Japanese optical equipment maker Olympus Corporation plunged 29% following revelations by the company that it concealed losses by paying inflated fees to advisers on the 2008 acquisition of Gyrus Group Plc.
The Jakarta Composite gained 0.73%; the KLSE Composite rose 0.20%; the Straits Times surged 0.64% while the Hang Seng ended flat. On the other hand, the Shanghai Composite fell by 0.24%; the Nikkei 225 tanked 1.27%; the Seoul Composite declined 0.83% and the Taiwan Weighted lost 0.27%.
Back home, institutional investors—both foreign and domestic—were net buyers in the equities segment on Friday. While foreign institutional investors pumped in funds totalling Rs128.62 crore, domestic institutional investors bought shares worth Rs70.49 crore.
KEC International (KEC), the flagship company of the RPG Group, has secured new orders worth Rs400 crore from Saudi Arabia and India for supply and construction of transmission lines on a turnkey basis.
The Saudi Arabia order worth Rs306 crore is for 380 kV double circuit overhead transmission lines. The company has also secured two domestic orders, from Power Grid Corporation of India (PGCIL) and another from a private customer—VISA Power—for 400 kV double circuit overhead transmission lines, worth Rs94 crore. The stock fell 3.99% to close at Rs51.75 on the NSE.
Shares of SKS Microfinance, India’s largest and only listed microfinance company, tumbled 7.70% to Rs193.10 on the NSE, after the company’s net plunged on huge loan write-offs. The company reported a net loss of Rs384 crore for the September quarter against a profit of Rs80.55 crore in the July-September quarter of the previous fiscal. During the quarter, SKS’ provisions against bad loans rose to Rs353 crore, a twenty-fold jump from Rs17 crore in the year-ago period.
Balaji Amines, a manufacturer of specialty chemicals, has drawn up plans to invest Rs70 crore for expanding its manufacturing facilities at Solapur in Maharashtra. The expansion is in its methyl amines, di-methyl amine hydrochloride and dimethyl formamide facilities. All these facilities produce ingredients that are used in the pharma and drug industry. The stock gained 1.90% to close at Rs37.55 on the NSE.
A division bench of the Calcutta High Court stayed distribution of the 290 acres of land allotted to 57 vendors of car components till disposal of the cases challenging the vesting of the land by the government
Kolkata: The Calcutta High Court today granted a stay on distribution of land allotted to vendors at Singur beside the Tata Motors’ (TML) Nano project plot by the West Bengal government, reports PTI.
A division bench, comprising justices PC Ghosh and MK Chowdhury, stayed distribution of the 290 acres of land allotted to 57 vendors of car components till disposal of the cases challenging the vesting of the land by the government.
Of the 57 vendors, 31 component manufacturers had moved the court seeking a stay on distribution of the land allotted to them.
The bench had earlier stayed distribution of 545 acres of land leased to TML on an application by the auto maker, which has appealed against the single bench order upholding the vesting of the Singur land leased to it.
The land leased to TML was vested by the West Bengal government vide the Singur Land Rehabilitation and Development Act, 2011, along with the total 997 acres of land acquired by the state in 2006 for the Singur Nano car project.
TML had left Singur for Sanand in Gujarat citing law and order issues in October 2008.
Justice IP Mukerji had on 28th September upheld the vesting of the land by the state government vide the Singur Act rejecting the challenge of its constitutionality by TML.
Submitting for TML on its appeal, senior counsel S Pal stated that the principle of compensation has not been specified in the Singur Act, thus making the Act flawed.
He further submitted that the trial court had in its order directed incorporation of certain points from the Land Acquisition Act, 1894 into the present Act made by the state government with regard to compensation to be paid to TML.
Mr Pal contended that the court can only interpret the law on its constitutionality and cannot rewrite the law which he alleged had been done by incorporation of the points.
He further claimed that the state had discriminated against TML and hence, fundamental right under Article 14 (Equality) of the Constitution had been violated.
The Group has alleged that NSE issued certain circulars in contravention to the rules and guidelines of the SEBI and thus favoured brokers over investors
Delhi-based Investor Protection Group (IPG) has filed a writ petition in the Delhi High Court (HC) against the National Stock Exchange (NSE), requesting to give directions to the Securities and Exchange Board of India (SEBI), to conduct an in-depth investigation into the alleged illegalities committed by the NSE. The petition is scheduled to be heard on 16th November.
In a release, IPG said, “We have asked court to direct SEBI to conduct a thorough investigation into the illegalities committed by the NSE and investigate if the acts of NSE are biased and are responsible for plotting loopholes in the system and to initiate appropriate legal action including cancellation or suspension of the registration/ licenses of NSE, if the same is established.”
According to the IPG, the Exchange deliberately issued certain circulars, in contravention to the rules and guidelines issued by SEBI, favouring the brokers and not to the investors. The group has also prayed to declare “those clauses of the circulars as null and void.”
Explaining the dubious role of NSE, the Group alleged that, “NSE acts as an informer to the brokers whereby they retrieve the critical information/ complaint from client and provides the information to the broker, but do not provide the complete documents /information to the client from brokers.”
It adds that, “Clients are made to fight their cases with incomplete information and as a result loose their case. NSE also does not support or provide any information about your account till they are forced by the Arbitrators.”
It has also alleged that illegal and unauthorized trading is carried out by the stock brokers under shelter of NSE. SEBI is also been named in the writ petition, because according to the group, such illegal trading are not monitored by the SEBI, as its responsibility as a stock market regulator.
The Delhi-based group has also alleged NSE for allowing brokers to make agreements/ contracts on their own without the mandatory signature of the clients required at the time of registration. The writ petition has been referred to a division Bench of Delhi HC in the category of Public Interest Litigation (PIL).