Expecting a correction has been futile, but there is hardly any record of the market rising for a 9th day in a row
Joining in India’s celebrated semi-final win in the Cricket World Cup last night, the market continued its gaining spree for yet another day. The Sensex opened 50 points higher at 19,340 and the Nifty gained 15 points to 5803.05. Banking and realty counters witnessed early demand. Volatility on account of the futures and options expiry was evident since the start of trade today.
The market touched the day’s high just after mid-day, with the Sensex scaling 19,575 and the Nifty touching 5,872. However, intense profit-booking pushed the indices to their intra-day lows at around 2.50pm. The indices fell below its opening levels and even dipped into the red (Sensex to 19,284 and the Nifty to 5,779).
The market has rallied for eight days in a row and it would be a surprise if it does not correct tomorrow.
Vodafone, the world’s largest mobile phone operator by revenue, today said it has exercised its option to acquire Essar’s stake in their joint venture for $5 billion. Essar has a 33% stake in the joint venture company and with this buy Vodafone will have a direct holding of 75% in the Indian telecom company. Essar will exit completely from the joint venture. The company also said that a final settlement is expected to be completed by November 2011.
The market picked up some momentum amid fluctuations in the last half an hour and closed in the positive for an eighth day, an indication of a strong bull-run. The Sensex closed at 19,445, a gain of 155 points over its previous close, and the Nifty was up 46 points at 5,834.
In the fiscal-end rally which started on 22nd March the Sensex has gained 1,606 points and the Nifty has risen by 469 points.
Among the broader markets, the BSE Mid-cap index gained 0.29% and the BSE Small-cap index added 0.21%.
In the sectoral space, BSE IT (up 1.92%), BSE Fast Moving Consumer Goods (up 1.67%), Oil & Gas (up 1.44%), BSE TECk (up 1.42%) and BSE Metal (up 0.98%) were the major gainers. BSE Bankex (down 0.70%), BSE Healthcare (down 0.35%), BSE Consumer Durables (down 0.22%) and BSE Capital Goods (down 0.16%) were the main losers.
Bajaj Auto (up 2.90%), ONGC (up 2.76%), TCS (up 2.71%), Hindustan Unilever (up 2.50%) and Hero Honda (up 2.23%) were the best performers on the Sensex today. State Bank of India (down 3.19%), Cipla (down 2.01%), Reliance Communications (down 2%), Mahindra & Mahindra (down 1.61%) and Maruti Suzuki (down 0.95%) were the top lowers on the index.
Food inflation eased to single digits at 9.5% for the week ended 19th March helped by cheaper pulses even though vegetables and fruits remained expensive. Food inflation, measured on the basis of wholesale prices, had soared to 10.05% in mid-March after remaining in single digits for two weeks in a row.
The drop in food inflation in the week under review is also due to higher base in the corresponding period last year, when the rate of price rise was 20.18%.
Markets in Asia recovered from early hiccups and barring the Shanghai Composite, all others closed in the green. The Chinese benchmark settled lower on worries that the country’s central bank could go in for another round of rate hikes. However, geo-political issues and debt concerns in Europe capped the gains. The Seoul market gained on support from insurers and airlines. The realty sector aided the Hang Seng to close higher.
The Hang Seng gained 0.32%, the Jakarta Composite surged 1.04%, the KLSE Composite advanced 0.88%, the Nikkei 225 rose 0.48%, the Straits Times was up 0.34%, the Seoul Composite gained 0.73% and the Taiwan Weighted climbed 0.43%. On the other hand, the Shanghai Composite declined 0.88%.
Back home, foreign institutional investors were net buyers of stocks worth Rs739.61 crore on Wednesday. On the other hand, domestic institutional investors were net sellers of stocks worth Rs615.34 crore.
Aurobindo Pharma (up 1.08%) has received final approval from the US Food & Drug Administration (USFDA) to manufacture and market Fosinopril Sodium Tablets USP 10mg, 20mg and 40mg in the US. The drug is the generic version of Bristol-Myers Squibb Company Pharmaceutical Research Institute’s Monopril tablets 10mg, 20mg, and 40mg. The product falls under the cardiovascular (CVS) therapeutic category and is indicated for the treatment of hypertension. The product has a market size of about $20 million for the twelve months ending September 2010.
Tata Power (up 0.34%) today said it had started commercial operation of another 120-MW unit at its coal-based power plant at Jojobera, in Jamshedpur. Commercial operation of the latest 120-MW unit at Jojobera—dubbed Unit 5—began on 27th March. With the addition of this unit, the total capacity of the Jojobera thermal power station is now 547.5 MW.
KEC International (1.66%), the flagship company of RPG Group has bagged orders totalling Rs801 crore in the areas of transmission (domestic and international) and cables.
In India, the company has secured three orders from Power Grid Corporation of India aggregating Rs224 crore and one order from state utility Aptransco worth Rs84 crore on a turnkey basis. In the global arena, the company has bagged orders worth Rs386 crore from Saudi Arabia, South Africa, United States and Brazil.
The company relisted in September last year, but registrars repeatedly put off dematerialising shares on excuse of faulty master data. Investors demand investigation into alleged manipulation
Many small retail investors of Jay Energy & S Energies Ltd are struggling to dematerialise their physical shares, because, according to the company's registrar transfer agents (RTAs) the master data of shares is not in order. And those retail investors, who have managed to dematerialise their physical shares after a long struggle, have already missed the opportunity to sell the shares at higher prices.
Jay Energy & S Energies tied up with the National Securities Depository Ltd (NSDL) and re-listed the stock after 13 years on the Bombay Stock Exchange (BSE) on 29th September 2010, but the move appears suspicious. On 30th September, the company informed the BSE about the shareholding declaration, saying that the company had dematerialised 42.82% of the total 6,797,700 shares. The company dematerialised 48.86% shares of promoters, who own 2,250,000 shares, while 39.83% of the holding of non-promoters, who have 4,547,700 shares.
But retail investors were not informed about the relisting and the shareholding declaration. After seeing the notice of shareholding declaration on the BSE and noting that 39.83% of the non-promoter shareholding had been dematerialised by 30th September 2010, the retail investors started sending physical shares for demat.
However, the company's RTA-Purva Sharegistry (India) Pvt Ltd-did not accept any applications of retail investors to demat their shares, as Jay Energy & S Energies had instructed it not to process any transfers or demat requests as the company was in the process of changing the registrar.
"Yes, we asked Purva not to process any demat or transfer requests as we were in the process of appointing our new registrar, because Purva did not complete the given work on time," Mihir Parikh, director, Jay Energy & S Energies told Moneylife.
However, according to SEBI guidelines an existing RTA can continue to process requests for demat/share transfer until a new RTA is appointed.
Meanwhile, Jay Energy & S Energies appointed Cameo Corporate Services (CCS) as the new RTA. CCS delayed processing requests by retail investors to demat their shares, for two months, saying it had not established 'connectivity' for the scrip and had not received records from the company.
The struggle of shareholders did not end here. After connectivity was established in early December, CCS informed investors that "the master data of shares is not in order and the certificate numbers and distinctive numbers are not tallying with the master data of shares."
"We will complete the dematerialisation process within the next one week," said Mr Parikh. However, he declined any further comment.
This is strange, for when the company got re-listed, 39.83% of non-promoters' shares were converted into demat with the same master data of shares. Why didn't the registrar raise the same problem then, ask investors.
Was the master data of shares made an excuse to create an artificial scarcity and influence the share price? Or was the data bad even before 30th September 2010 and were procedures violated at the previous registrar to allow over 39% of shares to be dematerialised without a problem?
The capital market regulator must find out who the "favoured" people/entities were who managed to get their shares dematerialised quickly and just in time on the resumption of trading in the scrip from 29th September 2010, and without facing the issue of incorrect master data.
Many shareholders have raised these issues with the Securities and Exchange Board of India (SEBI), the National Securities Depository Ltd (NSDL) and the Ministry of Corporate Affairs, but they have not received any response so far.
Dematerialised shareholding increased to 55.19%-- made up of 48.86% of the total promoters' share holding and 58.33% of the total non-promoter holding--by 30th December 2010. However, NSDL statistics for 31st December 2010 showed that 292 demat requests of the company were pending for more than 21 days.
Finally, some retail shareholders started getting dematerialised shares back in January this year. However, some are still waiting for their shares to be demated.
Jay Energy & S Energies announced that it had fixed 15th February 2011 as the record date for the purpose of change in face value of the equity shares from Rs10 to Rs2 per share.
However, retail investors have not benefited from this as share prices fell dramatically from a peak of Rs203.45 on 5th January 2011 to Rs66.70 on 11th February (before the share split). Today, the stock trades at Rs6.15 (about Rs30 pre-split), a whopping 85% down in just three months.
It seems that the non-promoters, whose shares were dematerialised before 30th September 2010, earned mammoth profit and on the fear of a share split, the big non-promoters sold their shares and that this led to a fall in share prices.
The much-awaited encounter between the two neighbours attained a record viewership of 20.02 points, unheard of in the Indian television space. Cricket fever has led to a 514% increase in the ratings for the sports genre over the average on the last four Wednesdays
The Indian cricket team, which is on the verge of winning the World Cup, has already created history for television viewership. The semi-final between India and Pakistan on Wednesday saw the ratings peak at 20.02, which no event, no match, no show, has achieved so far, according to Audience Measurement and Analytics Ltd (aMap). aMap is an overnight TV audience measurement system that provides data on multiple dimensions like demographics, ownership and viewership.
"World Cup matches have seen high viewership numbers… be it India against England, or India against Australia. However, the India-Pakistan match surpassed all expectations, attracting ratings of 11.7 and getting peak ratings of 20.02 points. The madness associated with the India-Pak match was in true form and with 67.3 million viewers watching the match on TV, it was the grandest of all events," said Jiniti Shah, vice-president, aMap.
According to aMap, the time spent per viewer for the India-Australia match was 115 minutes, for the India-England game it was 99 minutes, and the involvement shot up to an electrifying 160 minutes per viewer for the titanic tie on Wednesday. It said the time spent for the sports genre shot up by 248%, which contributed to the high jump in gross rating points (GRPs).
Women in India, normally perceived to be not too keen to watch cricket matches, were glued to the TV sets throughout the matches. The female target group (TG) has shown a tremendous growth, especially cable and satellite (CS) housewives (working) showed an increase of 49% and CS housewives showed increase of 33% across all TGs, from 15+ years females that witnessed a 30% increase in viewership to CS 4+ years females viewership that increased by 31%, the audience measurement service provider said.
While sports channels witnessed robust viewership, general entertainment channels (GEC) saw viewership dip by 20% during the semi-final match on Wednesday. aMap said, "The match led to a 20% dip in GRPs of the GEC genre with a subsequent increase of 514% in the sports genre over the average of last four Wednesdays. The net reach for the sports genre increased by 80% over the average of last four Wednesdays."