Nifty may move sideways with an upward bias to the level of 5,015
Gains in the global markets after news that European leaders were readying plans to enhance the size of the regional bailout fund helped the domestic benchmarks snap their four-day losing spree and close nearly 3% higher.
As we had mentioned in our Monday report, that in case the Nifty holds itself above yesterday's low of 4,759, we may see gains up to the level of 5,000. Today the index witnessed a gradual upmove to the level of 4,971. We may now see a sideways move with an upward bias to the level of 5,015.
The market opened firm this morning on support from its Asian peers which were trading higher on hopes that euro-zone policymakers will expand efforts to control Greece's debt issues in a bid to prevent a banking crisis. The Nifty opened 70 points higher at 4,905 and the Sensex started the day at 16,289, up 238 points. The opening figure was the day's low for the Nifty while the intraday low for the Sensex was seen in initial trade wherein the index touched 16,283. Thereafter the indices begin their northward journey supported by broad-based buying by institutional investors.
Reports on Monday indicated that European policymakers were chalking out plans to enhance the size of the regional bailout fund, reduce Greece's debts and recapitalise banks.
The domestic market continued to climb as the day progressed, buoyed by the positivism in the global markets. It scaled its intraday high in the last hour on support from the key European markets which were trading with gains of over 2% in early trade. At the day's high, the Nifty rose to 4,983 and the Sensex touched 16,552.
However, a minor bout of profit-taking was noticed after the benchmarks touched the highs of the day, which resulted in the indices closing a tad above those levels. At the end of trade, the Nifty closed at 4,971, up 136 points and the Sensex jumped 473 points to 16,524. The traded volume on the NSE was 51.90 crore shares.
The advance-decline ratio on the National Stock Exchange (NSE) was a positive 1272:460.
Among the broader indices, the BSE Mid-cap index rose 1.60% and the BSE Small-cap index gained 1.36%.
All sectoral gauges closed higher with the leaders being BSE Realty (up 4.66%), BSE IT (up 3.56%), BSE Oil & Gas (up 3.47%), BSE TECk (up 3.02%) and BSE Consumer Durables (up 2.82%).
The top gainers on the Sensex were DLF (up 8.46%), Jaiprakash Associates (up 5.93%), Tata Motors (up 5.92%), Reliance Industries (up 5.09%) and Hindalco Industries (up 4.26%). Cipla (down 0.28%) was the lone losers on the index.
The top performers on the Nifty were led by DLF (up 7.82%), Tata Motors (up 6.64%), JP Associates (up 5.9%), RIL (up 5.20%) and Tata Power (up 4.75%). Cipla (down 0.47%) and BPCL (down 0.11%) ended at the bottom of the benchmark.
Markets in Asia ended on a firm note on the optimism emanating from Europe. Gains were also boosted by rising copper prices. A European Central Bank executive board member said at a conference in New York on Monday that euro-zone policymakers were "exploring ways" to enhance the capabilities of the European Financial Stability Facility, to dispel fears of a contagion within the bloc.
The Shanghai Composite gained 0.91%; the Hang Seng surged 4.15%; the Jakarta Composite jumped 4.76%; the KLSE Composite climbed 2.43%; the Nikkei 225 advanced 2.82%; the Straits Times rose 2.70%; the Seoul Composite vaulted 5.02% and the Taiwan Weighted settled 3.09% higher.
Back home, foreign institutional investors were net sellers of stocks worth Rs1,083.83 crore on Monday. On the other hand, domestic institutional investors were net buyers of equities worth Rs575.21 crore.
GMR Infrastructure said it has won the country's first mega road project for widening the 555km long Kishangarh-Udaipur-Ahemadabad highway, estimated to entail an investment of Rs5,387 crore. The Bangalore-based group won the first highway project in Western India through international competitive bidding at Rs636 crore annual premium for 26 years. The stock fell 0.37% to Rs26.80 on the NSE.
Areva T&D India's transmission business, now part of Alstom Grid, has received a Rs40 crore contract from Reliance Power. The order envisages design and construction of a 220 kV substation for the proposed 350 MW Doorsar Solar Power Plant in Rajasthan. The Doorsar plant is India's largest solar power project. Areva T&D gained 2.25% to close at Rs225 on the NSE.
Drug major Glenmark Pharmaceuticals today said its US subsidiary, Glenmark Generics, has received tentative approval from the US health regulator for its generic Zolmitriptan tablets used for treating migraine. IMS Health has reported sales for the 12 month period ending June 2011 as $41 million for Zolmitriptan tablets. Glenmark Pharma added 1.06% to close at Rs324 on the NSE.
The regulation enforced by TRAI to curb pesky messages or calls sounds very good on paper. Unfortunately, the broad categorisation under which a subscriber can receive such SMS messages may be misused by telemarketers
Shakuntala Chavan was very happy that from 27th September onwards, no one would call or send an SMS to her and offer a free credit card, free ticket or home loan. However, as the regulation by the Telecom Regulatory Authority of India (TRAI) came into force, Shakuntala is in a dilemma whether to opt for a blanket ban or partial ban on pesky calls and SMSs. Shakuntala's case is not an isolated one. Almost every mobile subscriber is facing the same Catch-22 situation.
If a subscriber opts for complete ban on all unsolicited commercial communication (UCC) or pesky or marketing calls and SMSs, he will even be barred from receiving alerts from his bank. In case he decides to allow his bank to send UCC, then there is no guarantee that other banks or institutions falling under this particular category would leave him alone.
Telemarketers and many companies, including e-commerce sites like Flipkart, have sent messages to their customers informing them that if they wish to stop or continue receiving updates, then they have to re-register to a category under which the website falls. Flipkart has asked its customers to send an SMS "START 5" or "STOP" to 1909, for the option of receiving or not receiving messages from it.
What is interesting is that the numeric '5' mentioned above belongs to the consumer goods and automobiles category. This also means that if you want to receive messages from Flipkart, then you need to keep your doors open to receive UCC from other companies, which fall in the same category as well. This is still okay, but in case of the numeric '1', subscribers do not seem to get a reprieve. The first category belongs to banking, insurance, financial products and credit cards. This means, if you want to receive messages from your bank then you need to be prepared to accept calls or messages for credit cards or insurance as well!
There are seven such categories. Accordingly, to stop or to continue getting SMSs for financial products, the number is '1' followed by or preceded by START or STOP respectively; it is '2' (with the same options) for real estate; '3' for education; '4' for health; '5' for consumer goods & automobiles; '6' for communications/ broadcasting and entertainment and '7' for tourism & leisure. The subscriber can also opt for a complete or blanket ban and would not receive any UCC in whatsoever form.
"I am a regular buyer from Flipkart. I always get the status of the payment made and the shipment from the company through SMS. And I wish to continue such a service. But if I allow consumer goods promotional messages to be received, I am sure everyone else along with Flipkart will flood my message box with unwanted offers," says Alok Kumar, salesperson (name and profession changed on request) with a consumer durables company.
Telecom service providers were supposed to have started sending detailed messages to their subscribers. However, users reported today that only Airtel has sent out such an informative message.
Surprisingly, many subscribers who tired to reply to such messages by giving a space between 'START' and '0', found that their request was not accepted. However, when the same message was sent without any space between 'START' and '0', it worked. Sudhir Badami, Mumbai-based transport expert, told Moneylife, "I noticed that these SMSs showed no space between 'START' and the number. I tried START0 (without a space) instead of START 0 tried at first. This worked."
Now how would an average user know that this is the case?
Subscribers also complain that they continue to get such unwanted promotional messages on their mobile phone, despite the TRAI diktat. "This morning I got three messages on various offers. Interestingly, the messages are with random numbers as subject lines, as compared to product names provided earlier," says P Jadhav, research analyst.
TRAI, following concerns raised by telecom lobby Cellular Operators' Association of India (COAI) on limiting the SMS entitlement to 100 per day, exempted various service providers today from this stipulation (See: TRAI clears SMS confusion; exempts certain services ). This includes dealers of telecom operators and DTH (direct-to-home) operators, e-ticketing agencies, social networking sites like Facebook, Twitter, Orkut, LinkedIn and GooglePlus and directory services providers like Justdial, Zatse, Callezee, Getit and Askme, said TRAI in a notification issued on Tuesday.
Late evening on Tuesday, the telecom watchdog said that it is also planning to impose a five paise termination charge per SMS from 15th October on service providers on whose network commercial SMSs originate, to make it further difficult for those who broadcast millions of SMSs in a day.
"We are actively considering and we are likely to issue a regulation by 15th October to impose five paise termination charge on commercial SMS, and not on general SMS," TRAI chairman JS Sarma said at an event held at New Delhi.
A few operators charge up to 15 paise per SMS as termination fee on mutual agreements, but the same is not mandatory. The proposed TRAI directive will make it mandatory for all operators to charge termination fee for commercial SMSs, at least.
"We have issued a direction exempting certain categories from limitation of 100 SMSs per day. If genuine cases come to us, we will accept their request and exempt (them) from some clauses. People need to inform us," Mr Sarma told the media confirming TRAI's earlier directive today.
He added that on festival days there will be no limitation on the number of SMSs that can be send out from a single SIM. Meanwhile, the government today launched the 'Telecom Commercial Communications Customer Preference Regulation', which plans to give users across the country respite from pesky calls and SMSs. However, the implementation of these directives looks like a tough task for the regulator.
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1) Telemarketers flood subscribers with messages before the implementation of new TRAI rule banning bulk SMS transmission
As per Dealogic, despite ranking among the top 3 locations for M&A deals in the January-September 2011 period, India was also the country that witnessed the maximum decline in the combined value of M&A deals
New Delhi: The value of India-focused merger and acquisition (M&A) deals touched $39 billion in the first nine months of this year, a significant 31% decline over the corresponding period last year, reports PTI quoting global deal tracking firm Dealogic.
According to Dealogic, "India-targeted volumes (value) totalled $39 billion in the first nine months of 2011, down 31% from $56.1 billion on the same period of 2010."
As per Dealogic, despite ranking among the top 3 locations for M&A deals in the January-September 2011 period, India was also the country that witnessed the maximum decline in the combined value of M&A deals.
The combined value of M&A deals in the third quarter was just $4.7 billion, the lowest since the second quarter of 2005, when the deal value stood at $4.1 billion.
Meanwhile, despite a 12% dip in the third quarter, the Asia-Pacific (excluding Japan) region witnessed M&A deals with the highest combined value for a nine-month period on record, at $406.1 billion in 2011, up 13% in comparison to the year-ago period.
India was the third-most targeted nation in the Asia-Pacific region, accounting for M&A deals worth $39 billion, behind China ($134.7 billion) and Australia ($104.9 billion), Dealogic said.
In the Asia-Pacific region, the nations that witnessed a slump in deal activity in the nine-month period include India (down 31%), Malaysia (15%) and Singapore (4%).
A sector-wise analysis of the Asia-Pacific shows that real estate witnessed the biggest M&A deals in terms of their combined value during the period-at $48.9 billion-followed by mining ($48.3 billion) and finance ($42.5 billion), the report said.
"The $12.4 billion bid for Foster's Group by SABMiller was the largest deal in the Asia-Pacific (excluding Japan) in the first nine months of 2011 and is the only over $10 billion food & beverage deal on record in the region," Dealogic added.
Meanwhile, the value of M&A deals worldwide totalled $2.15 trillion during the first nine months of 2011, a 7% rise compared to the year-ago period.
The value of global M&A deals in the January-September period witnessed an increase despite the fact that their combined worth in the third quarter was just $599 billion, down 23% compared to $783 billion in the third quarter of 2010.
The value of global M&A deals in the third quarter is the lowest since the second quarter of 2010, when it stood at $592.9 billion, Dealogic said.