Sideways move on the cards: Friday Closing Report

Nifty may move sideways between 5,290 and 5,425

The market settled lower as poor industrial output numbers for December and unending European woes weighed on investors. With a lower volume of 96.62 crore shares on the National Stock Exchange, the Nifty once again made a higher high and higher low. However, the intraday range of the index doesn’t indicate any strength for a major move. From here, we may see the benchmark moving sideways between 5,290 and 5,425.

The market opened marginally lower this morning, ahead of the industrial output data for December 2011 and on weak cues from Asia. Although Greek policymakers managed to sew a deal on economic reforms and austerity measures on Thursday, Wall Street settled with small gains overnight. The nervousness was reflected in Asia as bourses in the region were trading mostly lower in morning trade. Back home, the Nifty opened 12 points lower at 5,400 and the Sensex lost 13 points to resume trade at 17,818.

Value picking kept the indices in the positive for a major part of the morning session. While the Nifty touched its intraday high of 5,427 in the first half hour itself, the Sensex rose to its high of 17,890 at around 10.50 am.

However, with industrial output numbers for December 2011 coming in at a mere 1.8%, the market began to drift lower in pre-noon trade. Subdued European market in early trade, as Eurozone finance ministers put tough conditions before approving a bailout package for Greece, added to the woes in the domestic market in the second half of the trading session.

The indices touched the low-point of the day at around 1.30pm with the Nifty falling to 5,341 and the Sensex going back to 17,627. While the market made a small recovery, it closed with a loss of around 0.50%. The Nifty settled at 5,382, down 31 points and the Sensex ended the session down 82 points at 17,749.

The advance-decline ratio on the NSE was in favour of the decliners at 836:953.

The broader indices witnessed a flat ending with a mixed bias. The BSE Mid-cap index rose 0.11% while the BSE Small-cap index lost 0.02%.

With the exception of the BSE Metal index (up 0.58%), all others settled lower. The top losers were BSE Realty (down 0.93%); BSE Oil & Gas (down 0.80%); BSE Healthcare (down 0.71%), BSE Bankex (down 0.68%) and BSE Power (down 0.41%).

Despite posting a dismal performance for the third quarter, Tata Steel emerged as the top gainer on the Sensex (up 5.30%). Other key gainers were Bajaj Auto (up 2.10%); Wipro (up 0.80%); TCS (up 0.29%) and ITC (up 0.17%). The losers were led by Hindalco Industries (down 3.62%); Maruti Suzuki (down 1.99%); Mahindra & Mahindra (down 1.36%): Reliance Industries (down 1.23%) and ICICI Bank (down 1.21%).

Tata Steel (up 5.12%) also was the top performer on the Nifty. It was followed by SAIL (up 3.72%); Bajaj Auto (up 2.25%); Sesa Goa (up 2.05%) and HCL Technologies (up 1.19%). Hindalco Ind (down 4.34%); Ambuja Cements (down 4.04%); Reliance Infrastructure (down 3.97%); ACC (down 3.66%) and IDFC (down 3.19%) settled at the bottom of the index.

The Asian pack, with the exception of the Chinese benchmark, closed in the negative as investors were worried whether the Greek debt restructuring deal would hold. In economic news, Chinese imports recorded a 15.3% drop in January, the lowest since August 2009, while exports fell 0.5%last month, signalling lower demand.

The Hang Seng declined 1.08%; the Jakarta Composite tanked 1.67%; the KLSE Composite fell by 0.23%; the Nikkei 225 decreased by 0.61%; the Straits Times dropped 0.71%; the Seoul Composite lost 1.04% and the Taiwan Weighted ended 0.61% lower. Bucking the trend, the Shanghai Composite added 0.10%. At the time of writing, the key European bourses were trading weak and the US stock futures were in the negative.

Back home, foreign institutional investors were net buyers of shares totalling Rs1,200.66 crore on Thursday, whereas domestic institutional investors were net sellers of equities amounting to Rs1,037.58 crore.

Godrej Properties (GPL), the real estate arm of Godrej Group, today launched its first venture in Chennai, the Rs450 crore 'Godrej Palm Grove'. Pirojsha Godrej, executive director of the company said 1,556 modern apartments would come up over 12.5 acres along NH-4 Bengaluru Highway ranging from 1,188 sq ft to 1,489 sq ft. The stock declined 1.86% to close at Rs644 on the NSE.

The income Tax department today conducted simultaneous searches in offices and manufacturing facilities of Hyderabad-based Aurobindo Pharma. The searches assumed significance as these were carried out ahead of the company’s board of directors' meeting to consider the unaudited financial results for the quarter ended 31 December 2011. The stock tumbled 6.18% to close at Rs110.15 on the NSE.

Elecon Engineering Company has been awarded an order worth Rs12.95 crore from The Indure, New Delhi. The order envisages supply, transportation, erection and commissioning of reversible stacker cum reclaimer with tools and tackles, mandatory spares and commissioning spares for 2x525 MW Monnet Thermal Power Project located at Angul in Orissa. The scrip fell 0.23% to settle at Rs64.70 on the NSE.


Equity fund flows: A slow start to the year for the fund industry

Despite a positive month for the Indian market, sales of equity funds in January failed to pick up

In January the Sensex gained 11% but this didn’t seem to interest equity mutual fund investors. After a month of inflows into equity mutual funds, January saw an exodus of Rs380 crore from equity funds. Sales declined and redemptions increased. Though sales of ELSS schemes picked up marginally, sales of other equity funds declined further compared to the previous months. Sales of equity funds have been declining since August 2011. (Read: The volatility and uncertainty in the market over the past few months and higher interest rate in safe products may have caused investors to divert their funds to safe havens like bank fixed deposits.

For the financial year to date (April 2011 to January 2012) we have seen an inflow of Rs2,860 crore into equity funds, which is much better compared to the year to date for the previous year (April 2010 to January 2011) which saw a huge outflow of Rs16,434 crore. However, the cause for concern is declining sales. For the same period of the previous year, total sales amounted to Rs55,187 crore, whereas for the current year the sales were just Rs41,755 crore a decline of nearly 25%.

The sales of equity funds in January 2012 amounted to just Rs3,029 crore which was less than half of that reported in January 2011 where the total sales amounted to Rs7,267 crore. Sale of ELSSs too which usually pick up during this time of the year was considerably less compared to that of last year. The redemptions may have been lower compared to the same month the previous year, but it was higher than the total sales. The total redemptions from equity mutual funds stood at Rs3,409 crore which was considerably higher to that of December last year

This month saw no new fund offers (NFOs). In the last twelve months there have been just 11 NFOs launched including one ELSS. The same period the previous year saw 20 NFOs being launched. In fact, the have been no new funds launched in the last two months.

The market rally over the past few weeks may just entice investors to put their money in mutual funds and hopefully February may see some inflows.


SC upholds govt decision on army chief’s age

The court held that no prejudice was done to General VK Singh and the government decision on his date of birth will continue to be there. In view of this, Gen Singh will have to retire on 31st May this year

The court held that no prejudice was done to General VK Singh and the government decision on his date of birth will continue to be there. In view of this, Gen Singh will have to retire on 31st May this year

New Delhi: In a setback to India’s army chief General VK Singh, the Supreme Court Friday upheld the government’s decision on his age issue and said he cannot resile on his commitment accepting the date of birth as 10 May 1950, forcing him to withdraw his petition, reports PTI.

The apex court said it was not in favour of entertaining Gen Singh’s petition that his date of birth should be treated in official records as 10 May 1951 and gave him option of withdrawing it.

The court held that no prejudice was done to Gen Singh and the government decision on his date of birth will continue to be there. In view of this, Gen Singh will have to retire on 31st May this year.

The apex court noted that the government has full faith in him and that the court wanted to ensure that he continues to work as the army chief as he has been doing.

Gen Singh has to abide by his commitment and honour his letters of 2008 and 2009 accepting the date of birth as 10 May 1950, the court said during over two-hour long hearing in a packed court room.

Finally, Gen Singh withdrew his petition when the court hearing resumed at 2pm after the lunch recess.

Earlier, at the start of the hearing, attorney general GE Vahanvati informed the court that government has withdrawn its 30 December 2011 order rejecting Gen Singh’s statutory complaint on his age issue.

At the same time, Mr Vahanvati made it clear that the government stands by its decision of July last year to treat his date of birth as 10 May 1950.

Posing tough questions to Gen Singh as to why he did not get the records corrected, a bench headed by justice RM Lodha said the recognition of his date of birth as 10 May 1950 by the Army does not suffer from perversity and was not grossly erroneous.

It said that all documents at threshold when Gen Singh joined Indian Military Academy and National Defence Academy contain the date of birth as 10 May 1950.

The Supreme Court bench, also comprising justice HL Gokhale, said Gen Singh has to abide by his commitment and honour his letters of 2008 and 2009 in which he had accepted his date of birth as 10 May 1950.

The court told Gen Singh that having given his commitment and assurance of abiding by the government decision, he cannot resile.

It said that recognition of Gen Singh’s date of birth as 10 May 1950 by Army does not suffer from perversity and is not grossly erroneous.

The government has full faith in him being the army chief and no prejudice was done to him, the court said, while observing that being the army chief, Gen Singh has reached the highest position which any officer aspires.

The apex court observed that Gen Singh’s writ petition was not for determination of date of birth but for recognition of date of birth in the official records.

The army chief faced further disappointment with the court refusing his plea that the government order on his date of birth as 10 May 1950 be restricted only to service record.

After Gen Singh withdrew his petition, the court declared it as disposed off as withdrawn.

Mr Vahanvati earlier made it clear that government was sticking to its 21 and 22 July 2011 order turning down Gen Singh’s contention that he was born in 1951.

He told the apex court that the government and ‘raksha mantri’ has full faith and confidence in Gen Singh to lead the Army.

Emerging from the court, the Army Chief’s counsel Puneet Bali said it was victory of both sides as the matter has been resolved amicably.

“Our petition was not for extension of service (of Gen Singh) but a matter of honour and integrity of the general,” he told reporters, adding “we are satisfied that his honour and integrity has been restored”.

The court also said that the primary record for Gen Singh’s date of birth was with UPSC which never corrected it.

“If they (UPSC) don't do, what do you do?” the bench asked senior advocate UU Lalit who is appearing for Gen Singh.

As the hearing began, the bench wanted to know from the attorney general as to what instructions he has about the 30th December order.

The attorney general responded saying that the second part of the order is treated as withdrawn.

On that the bench said, “you are withdrawing the order (of 30th December)?" The attorney general said that “30th December order goes but 21st and 22nd July stands”.

When the AG informed that the 30th December order has been withdrawn, the bench said “what was troubling us will not stand before us”.

Solicitor general Rohinton Nariman cited three letters of Gen Singh to say that he has been unequivocally given his personal rights.

The court on 3rd February had given an option to the government to ‘withdraw’ its 30th December order rejecting his statutory complaint, saying it was ‘vitiated’.




5 years ago

Perfect decision by the SC for such low down tactics by a respected General.
Those trying to mis-use the unaligned systems in the services should beware.
High time for the Services to align and link all their systems into one and root out other dob or other duplications.



In Reply to SunJan 5 years ago

to add, this is a good opportunity for the General to initiate a project to align the disparate systems, before he leaves the service.

P M Ravindran

5 years ago

Writing in the Mathrubhumi (a Malayalam daily) of 10 Nov 2011 (Vidhi prathilomakaram thanne), Adv Kaleeswaram Raj had stated that an extra constitutional, unannounced and invisible emergency is being imposed through our courts and civil society has to be alert to this and react effectively.

W are seeing for ourselves how the courts are unabashedly and with impunity turning natural justice and even established practices on its head.

Anyhow, I have the satisfaction of seeing my stand vindicated. For details please see my blog ''WILL THE ARMY CHIEF GET JUSTICE?' at

My only request to the youth aspiring to serve the nation through its armed forces is that they should know that this is what is supposed to pass off for justice even for the Army Chief! You can well imagine what can happen to the les miserables! Do you still have it in you to serve in a slave army? And the benefit of whose sacrifices will be enjoyed by, not the public, but by the thugs, scoundrels and traitors in offices of authority?

P M Ravindran

5 years ago

I stand vidicated! Please see my blog 'WILL THE ARMY CHIEF GET JUSTICE?' at

My foot, if this is what justice in our courts mean!

Vinay Joshi

5 years ago

In India Govt. decides Army Chief's age! In PAK the Army Chief decides the Govt's age!?

The apex court has not clarified in toto.

As per the apex court order a person can have two DoB's - one for the services record & as claimed by the petitioner for his own personal docs viz, passport, income tax et al! Right!


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)