Share prices tumble on dismal IIP numbers: Friday Closing Report

First new support for Nifty is at 5,415 and then at 5,350

We mentioned yesterday that Nifty has to stay above 5,480 for the bulls to have any hope. The Nifty went below it and bounced back. The Indian bourses opened range-bound on concerns about rising crude prices and ahead of the release of industrial output numbers for April. The Sensex added five points to its previous close to open at 18,390 and the Nifty was at 5,518, down three points. The market soon touched the day's high with the indices at 18,399 and 5,521, respectively.

The indices stayed in negative terrain and drifted further southwards after the release of disappointing industrial numbers for April, another indication of a slowdown in the economy. The focus will now shift to the Reserve Bank of India's mid-quarter policy review next week, to see how the central bank tackles rising inflation and slowing growth. The market touched the intra-day low at around 1.50pm, with the Sensex at 18,183, a fall of 202 points, and the Nifty erased 64 points to 5,457.

The indices made a half-hearted recovery in the last hour but settled lower on the last trading day of the week. The Sensex closed trade at 18,269, down 116 points and the Nifty lost 35 points at 5,486.

The Nifty is now in a downtrend with the first support at 5,415. And if it breaches this level, we can expect the market to fall to around 5,350.

The advance-decline ratio on the National Stock Exchange was a negative 591:1050.

Although the broader indices stayed in the red, they outperformed the Sensex in trade. The BSE Mid-cap index fell by 0.34% and the BSE Small-cap index was 0.46% lower.

The BSE Consumer Durables index (up 0.47%) was the lone gainer in the sectoral space. The top losers were BSE Capital Goods (down 1.08%), BSE Fast Moving Consumer Goods (1.04%), BSE Realty (down 0.80%), BSE Metal (down 0.73%) and BSE PSU (down 0.67%).

Maruti Suzuki (up 1.03%), Hindalco Industries (up 0.74%), ONGC (up 0.64%) and TCS (up 0.37%) were the major gainers on the Sensex. DLF (down 1.83%), ITC (down 1.69%), Larsen & Toubro (down 1.64%), Reliance Infrastructure (down 1.52%) and Tata Steel (down 1.36%) were the top losers.

The top Nifty gainers were Hindalco (up 0.87%), Cairn India (up 0.64%), ONGC (up 0.62%), Ranbaxy (up 0.41%) and TCS (up 0.31%). The Nifty losers were led by Grasim (down 2.24%), DLF (down 2.19%), Reliance Capital (down 1.90%), L&T (down 1.85%) and Reliance Infra (down 1.69%).

India's industrial growth rate shrunk by more than half to 6.3% in April, mainly on account of a poor showing by the manufacturing and mining sectors, a development that the government described as 'disturbing'.

The declining factory output may increase pressure on the Reserve Bank of India (RBI) to have a relook at the tight monetary policy which it has been pursuing since March 2010, to check rising prices.

Markets in Asia settled mostly lower on Friday, following news of a rate hike by the South Korean central bank and a slowdown in Chinese exports growth in May. The Bank of Korea's monetary policy committee increased the 7-day repurchase agreement rate to 3.25% despite signs of a slowing economy and risks from the euro zone. Chinese exports rose by 19.4% in May from a year earlier, slowing from the 29.9% pace in April, while imports went up by 28.4% from 21.8% in April.

The Hang Seng declined 0.84%, the Jakarta Composite fell by 0.49%, the Straits Times retraced 0.62%, the Seoul Composite tanked 1.19% and the Taiwan Weighted tumbled 1.81%. On the other hand, the Shanghai Composite added 0.10%, the KLSE Composite rose 0.34% and the Nikkei 225 ended 0.50% higher.

Continuing their tepid participation in the stock market, foreign institutional investors were net sellers of stocks worth Rs24.73 crore on Thursday, whereas domestic institutional investors were net buyers of stocks worth Rs8.97 crore.


Pending commissions of PPF agents to be paid soon

National Savings Institute expects to complete verification of claims soon. Process was held up after detection of fraud in 2004

Pending commissions of public provident fund (PPF) agents will be paid soon by the National Savings Institute (NSI). There have been numerous complaints by the PPF agents about not receiving entitled commissions between June 2001 and May 2004.

Earlier, the commission was paid to the agents by the local PPF office, after receiving the documents relating to the payment, on a quarterly basis. Then the local office issued the commissions through cheques. It was a time-consuming process.

This payment mechanism was changed by a finance ministry directive in May 2004. The ministry's budget division stated in an office memorandum, "The commission is payable to the agents at the time of deposit itself, under clear receipt, without submission of any claim and/ or undertaking by the agent."

Agents under national savings are paid commissions at the rate of 1% under the PPF agency system. The NSI comes under the purview of the finance ministry. But many agents complained that their commissions in the period June 2001 to May 2004 have not yet been paid.

Nasir Sajjad, regional director, NIS, told Moneylife, "The payments were stopped after we detected some frauds in the bills. For instance, some agents put wrong stamps and amounts were found to be inflated. Following this, we instituted an inquiry through the CBI (Central Bureau of Investigation). But, in October 2009 the Ministry of Finance directed us to verify the commission claims of the agents with their banks."

He said, "Accordingly we sent the verification letters to the banks. Around 1.36 lakh such letters were sent by post by 28 January 2011. We will soon start making the payments as many of the banks have started replying. The process is taking time as most of the agents have commission claims for as many as 100 accounts, with different branches. Once all the banks with which the agent has the commission claims, send their replies, we will start making their payments."  

Agents have welcomed the move, but feel that the process will take a lot of time. "We have already waited for such a long period. The local PPF never paid attention to our complaints. They (NIS officials) always made some or the other excuse," said one Mumbai-based agent whose payments have not been made.

Another agent whose pending commission claims amount to about Rs47,000, said, "Hope the banks act fast and make our payment. We have waited for a long time."




6 years ago

thanks to the move undertaken by money life to have raised this issue.

A more stunning example of PPF commissions already paid under 'frauds to be unearthed' category is

(paid comm. by banks, themselves when an agents agency lapses and the NSI does not renew them too),

where the member of the NSI forms a syndicate with one of the existing agents, bribes the bank staff, to still keep claiming commission on the PPF accounts by issuing duplicate chalans---(maintained earlier by an agent whose licence does not get renewed....PERIOD UNDER CONSIDERATION 2004..2011),which they are not entitled to.

In doing so the syndicate does not realize that the agent whose licence has expired, is still offering honorary and or paid services to all his PPF customers.

This then raises a question that the people claiming commission from the banks are neither having any authority to serve the client nor have made any official communication to the NSI to give the so called SERVICE to the clients,on whose PPF A/C..... commission is being claimed.

This certainly is nothing but a monkey business for the ones who are in business..and also allows them to go Scot free on claiming such commissions from the exchequer that may run into a few crores certainly.

Banks allowing this kind of activity can be identified by their SB A/c Nos. beginning from 0420 i.e. BANK OF BARODA vile parle (w) pin..400056.
also BANK OFINDIA vile parle (w) pin ..400056.
POST OFFICE VILE PARLE (w) pin ..400056. so on and so forth......

THE NSI officer MR. KADAM is one such very well known person to members of the NSI agents community, for home delivering licences.. new or renewed.. to agents who offer handsome amounts to get this act fixed.

all in all it may be understood that commissions are first meant to be REBATED ,... THEN TO be USED 2 BRIBE FAsT PAYMENT ..... and not the least forgettable...... to PAY CLIENTS and or NSI syndicate members to overlook faults committed by agents while running their agencies


why have such payments be made to Agents' !!!!!!!!!!!

Experts panel recommends conditional approval for first phase of HCC’s Lavasa project

A high-level committee is to be constituted that will examine, verify and monitor the project at various stages and the compliance of conditions

Mumbai: An Expert Appraisal Committee (EAC) set up by the environment ministry has recommended conditional approval to Lavasa Corporation, a subsidiary of Hindustan Construction Company (HCC), for the first phase of its 2,000 hectares hill town project, near Pune.

"We welcome the recommendation of the Expert Appraisal Committee. The Committee has recommended clearances for Lavasa's first phase of the 2,000 hectares hill town project with some conditions," HCC's chairman and managing director, Ajit Gulabchand, told shareholders at the company's annual general meeting today.

Subject to the pendency of some issues of Lavasa Corporation before the Bombay High Court, the Committee has recommended the proposal for environmental clearance for the first phase of 2,000 hectares with conditions, the panel has said. The report has been posted online, PTI reports.

The infrastructure major needs to allocate at least 5% of the project's total cost for community development projects and a time-bound action plan will have to be prepared and submitted to the ministry's regional office at Bhopal, it said.

"We have lost Rs2 crore a day since the work stopped and around 1,500 workers have lost their jobs. The ministry should take a decision soon, keeping the committee recommendations in mind," Mr Gulabchand said.

The panel said a high-level Verification and Monitoring Committee (VMC) shall be constituted, with the inclusion of eminent experts, representatives of MoEF and District Administration.

The committee shall examine, verify and monitor at various stages (planning, construction, operation and maintenance) of the project and the compliance of the conditions.

In December last year, the environment ministry had ordered status quo to be maintained at the site, terming it "unauthorised", and it observed that Lavasa Corporation, the site developer and a subsidiary of HCC, had violated the Environment Impact Assessment (EIA) notifications.

Lavasa Corporation challenged this order in the Bombay High Court and the matter is pending before the Court.

In February, the company had also applied for grant of environment clearance for the first phase of the project.

Before that, in January this year, the environment ministry said it was ready to consider the project on "merits", subject to fulfilment of certain conditions.


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