The market is trying to shrug off the downtrend, but it could be a short-term rally that tops out at 5,620-5,700
The election verdict from the four states and one Union Territory seemed to have a positive effect on the bourses today, as after lying low for four days, the market was in fine fettle today.
Earlier, the market opened with small gains on a mixed trend in the markets across Asia. The rate hike by the People's Bank of China on Thursday weighed on sentiment. The Sensex added 26 points to its Thursday tally to open at 18,362 and the Nifty was six points higher at 5,492.
Shortly after the opening bell, selling pressure pushed the market in the negative, with the indices touching their intra-day lows. At the day's low, at a little after 9.30 am, the Sensex stood at 18,281 and the Nifty was at 5,472.
The market emerged higher after early trends of the election results started trickling in, laying aside macro-economic worries that plague the country. Overcoming initial hiccups, the market gained strength as trading progressed. Across-the-board buying support resulted in gains for all sectoral gauges.
The benchmarks touched the day's high in the noon-session with the Sensex up 389 points at 18,725 and the Nifty up 119 points at 5,605. However, the market pared some of the gains as profit booking set in at higher levels, and settled well in the green, recovering from yesterday's losses.
The Sensex closed 195 points higher at 18,531 and the Nifty settled with a gain of 59 points at 5,545. The advance-decline ratio on the National Stock Exchange was 862:518.
As the market tries to shrug off the downtrend, today's gains could lead to a short-term rally that tops out at 5,620-5,700.
The broader indices underperformed the Sensex in trade today. The BSE Mid-cap index advanced 0.85% and the BSE Small-cap index rose 0.39%.
BSE Fast Moving Consumer Goods index (up 2.35%) was the top sectoral gainer. Other gainers were BSE Metal (up 1.48%), BSE Healthcare (1.40%), BSE Auto (up 1.35%) and Capital Goods (up 1.34%). There were no losers in the sectoral space.
Jaiprakash Associates (up 3.12%), ITC (up 3.10%), Hero Honda (up 2.48%), Jindal Steel (up 2.43%) and Bajaj Auto (up 2.17%) were the top performers on the Sensex. On the other hand, Reliance Communications (down 0.49%), Infosys Technologies (down 0.08%) and HDFC (down 0.05%) were the only losers on the index.
The Supreme Court today banned the production, sale and use of controversial pesticide endosulfan in the country for the next eight weeks, holding that human life is more important than anything else. The bench also directed the statutory authorities to freeze the production licences granted to the manufacturers of the controversial pesticide till its further order.
Markets in Asia settled mixed on the last trading day of the week on rate-tightening measures by the Chinese central bank. The South Korean market extended its losses despite the Bank of Korea keeping its key rate unchanged at 3%. Japanese banks were under pressure after the government said it may force lenders to forgo loans to Tokyo Electric Power, which has been saddled by a crippled nuclear power plant after the devastating earthquake and tsunami early March.
The Shanghai Composite gained 0.98%, the Hang Seng advanced 0.88%, the Jakarta Composite rose 0.61%, the KLSE Composite was up 0.55% and the Straits Times climbed 1.06%. The Nikkei 225 declined 0.70%, Seoul Composite fell 0.12% and the Taiwan Weighted lost 0.30%.
On Thursday, the inflows into equities from domestic institutional investors were offset by a pull-out of funds by foreign institutional investors. Domestic institutional investors were net buyers of shares worth Rs312.44 crore, while foreign institutional investors were net sellers of stocks worth Rs420.03 crore.
The telecom ministry has issued a show-cause notice to Idea Cellular for the Karnataka circle and Spice for the Andhra Pradesh circle for cancellation of licences on account of a delay in network roll-out obligations
New Delhi: The telecom ministry has issued a show-cause notice to Idea Cellular for the Karnataka circle and Spice for the Andhra Pradesh circle for cancellation of licences on account of a delay in network roll-out, reports PTI.
"Yes, they have been issued (notices). Idea Cellular for Karnataka and Spice for Andhra Pradesh have been issued show-cause notices for cancellation of their license on account of delayed roll-out obligations," telecom secretary R Chandrasekhar told PTI.
In 2008, Idea bought Spice, but has not yet received approval from the Department of Telecommunications (DoT) to go ahead with the merger.
"The notices have been sent recently. The companies have been given 60 days to respond," he said.
Idea and Spice Telecom had procured these licences in January 2008, under the regime of former telecom minister A Raja, who has been arrested on charges of irregularities in distribution of 122 new licences along with second generation (2G) spectrum.
Earlier, the government collected approximately Rs300 crore as liquidated damages from new operators, including Idea and Spice, over their failure to roll-out their networks as per the licence agreement. After collecting the penalties, notices are now being sent for cancellation of licences.
Telecom regulator Telecom Regulatory Authority of India (TRAI) had also recommended the cancellation of licences of leading mobile operators Idea Cellular and Spice in five states for their failure to roll out services within the stipulated time.
However, Aditya Birla group firm Idea had earlier said that it has not breached the licence agreement.
When contacted to seek their comment on the receipt of the cancellation notice, Idea officials said they are yet to receive any show-cause notice.
Last month, the telecom ministry had secured an ex-parte stay from the Delhi High Court on the merger between Idea and Spice, a decision opposed by the Aditya Birla group, which charged that the DoT was trying to cover up its "inefficiencies".
Idea is facing charges of violating the terms and conditions of the licence by retaining overlapping licences, but the company claims it never wanted to retain the unused spectrum and had offered to surrender the overlapped licences.
As of 31 March 2011, Idea Cellular has 8,95,03,318 mobile subscribers.
Edelweiss Tokio Life plans to commence sales later this year
Edelweiss Tokio Life Insurance, a joint venture between the Edelweiss Group, India’s leading diversified financial services conglomerate and Tokio Marine, one of the world’s leading Insurance group headquartered in Japan; has been registered by Insurance Regulatory & Development Authority (IRDA) to carry on the business as a life insurer.
Speaking at the occasion Rashesh Shah, chairman and CEO, Edelweiss Group said, “At 4.5%, life insurance penetration in India continues to be low. We see an opportunity there. With a global leader as a partner and a country wide distribution network Edelweiss Tokio Life is well placed to benefit from this opportunity.”
Hiroshi Endo, managing director, Tokio Marine Holdings said, “Tokio Marine Group has been looking at India as an exciting opportunity, where we have Edelweiss as our committed partner. And now that we have been granted license, we will launch customer—focused approach and hope to be successful.”
Deepak Mittal, Director, Edelweiss Tokio Life said, “Edelweiss Tokio Life endeavors to imbibe a ‘customer first’ approach and focus on need-based selling. Our personal financial advisors will be well trained and offer customers products as per their life stage requirements.” he added.
Edelweiss Tokio Life plans to commence sales later this year, depending on product approvals.