Nifty may find support at around 4,880
The market settled lower as macro economic headwinds continued to weigh on the investors. While the finance minister made some amendments in the Finance Bill 2012, a slowdown in exports in April and March IIP contracting 3.5% led the market lower for four of the five trading session in the week, making it the third weekly fall in a row. All eyes will now be on the inflation data for April, which will be announced on Monday.
A smart recovery after the finance minister announced that implementation of the GAAR provisions would take place from the next fiscal pushed the market higher on Monday. However, dismal economic indicators kept the market in the red on the other trading days.
The market closed 3% lower in the week with the Sensex down 538 points to 16,293 and the Nifty at 4,929, a cut of 158 points. While Nifty may find support at around 4,880, the benchmarks are likely to see some gains in the second half of the week.
While the BSE Consumer Durables index settled flat, all others were in the negative. The top losers were BSE Power (down 5%) and BSE IT (down 4%).
Bajaj Auto (up 4%), BHEL and DLF (up 3% each) were the key Sensex gainers in the week. the major losers were Tata Power (down 8%), State Bank of India, Hero MotoCorp (down 7% each), Sterlite Industries (down 6%) and Jindal Steel & Power (down 5%).
The Nifty toppers were BPCL (up 7%), IDFC (up 6%), Bajaj Auto (up 4%), BHEL and DLF (up 3% each). Jaiprakash Associates (down 12%), Punjab National Bank, Tata Power, SBI and Hero MotoCorp (down 7% each) settled at the bottom of the index.
Bowing to pressure, the finance minister on Monday announced a slew of measures to provide relief to the jewellery sector and postponed implementation of the general anti-avoidance rules (GAAR) by one year, but offered no concessions to Vodafone involved in tax dispute.
India's export growth dropped to 3.2% in April, but a sharp deceleration in import expansion resulted in trade deficit narrowing to $13.2 billion, the lowest in a year.
Industrial production declined by 3.5% in March compared to 9.4% in the corresponding previous month, mainly on account of contraction in manufacturing and mining output.
IIP for 2011-12 had been dismal at 2.8% as compared to 8.2% in previous fiscal due de-growth in mining at 2% and slower 2.9% growth in manufacturing.
Commenting on the data, finance minister Pranab Mukherjee said, "The IIP figures are disappointing... Domestic investment recovery remains frail. It will take some more time for interest cost to come down."
On the global front, the US markets closed down for the second week in a row, mainly on JP Morgan's trading loss and the unending problems in Europe. Meanwhile, socialist party leader Evangelos Venizelos failed to form a new coalition government in Greece, fuelling speculations of fresh elections in the debt-ridden country.
Adidas filed criminal complaint with the authorities to bring formal charges in commercial irregularities uncovered at Reebok India
Berlin: German sportswear giant Adidas has petitioned the Indian law enforcement authorities to open a criminal investigation into alleged financial irregularities uncovered in its Indian arm Reebok India.
A "criminal complaint" was filed with the Indian law enforcement authorities in order to bring formal charges in connection with the "commercial irregularities uncovered at Reebok India", an Adidas spokesman told PTI.
An Adidas team is currently in India to assist in the investigations. Further details cannot be made public at this stage as investigations were continuing, the spokesman said.
Adidas claimed earlier this month that it had uncovered commercial irregularities to the tune of 125 million euros in its subsidiary Reebok India and announced plans to close one-third of around 900 Reebok stores as part of a restructuring strategy.
In March, the company announced top-level management changes in Adidas India and said that managing director Subhinder Singh Prem and chief operating officer Vishnu Bhagat have "left the company with immediate effect".
Mr Prem served as the head of Reebok's India business before he was appointed as the MD of Adidas India last year. He was replaced by Claus Heckerott as new India chief of Adidas.
The spokesman confirmed that Adidas intends to close one-third of its Reebok shops, which are run by its licence-holders.
A reorganisation of Reebok's business in India was planned long before and the slashing of its stores has nothing to do with the alleged financial irregularities uncovered in the company, he said.
The spokesman also dismissed as "pure speculation" media reports that Adidas has plans to close some its stores in India. "Those reports are pure speculations. There are no such plans," he said.
Adidas currently operates more than 1,000 stores in 325 towns and cities across India.
Air India also sent a letter to the DGCA asking it to cancel licenses of 11 office bearers of the IPG whose services have been terminated
New Delhi: With the agitation by Air India pilots entering its fifth day on Saturday, the national carrier cancelled 16 flights from Delhi and Mumbai even as senior pilots sought the Prime Minister's intervention to end the impasse, reports PTI.
"16 of our flights originating from Delhi and Mumbai have been cancelled," an AI spokesperson said.
Supporting the agitation, senior pilots wrote a letter to Air India's Chairman-cum-Managing Director and to Prime Minister Manmohan Singh, saying the demand of the pilots were genuine and they should be looked into, sources said.
About 200 pilots owing allegiance to the Indian Pilots' Guild are on strike since Tuesday protesting rescheduling of training on Dreamliner and issues related to career progression.
Taking a tough stand, the Air India management had yesterday sacked 25 pilots. With this, the total number of pilots whose services have been terminated has gone upto 71.
Air India has also written to the Directorate General of Civil Aviation (DGCA) asking it to cancel the licenses of 11 office bearers of the IPG whose services have been terminated.
The IPG has said that they are ready for talks and have sought time for a meeting with Civil Aviation Minister Ajit Singh. The minister has asked the pilots to return to work and assured them that their demands will be heard.
President of the Indian Pilots Guild, Jitendra Ahwad said the agitating pilots were ready for discussion.
Noting that the Supreme Court has asked both the parties to sit down and talk, he said, "The government and the management should obey the Supreme Court orders. We are ready to sit down and talk, and each and every problem has a solution but every solution needs to be discussed.
"And then only you can find the rightful solution. After discussions and negotiations across the table, we can find a way out," he said.