Upmove may continue: Wednesday Closing Report

Cautious upmove ahead; change in trend if the Nifty closes below the previous day’s low


The market snapped its two-day winning streak to close lower on unsupportive global cues and the political stand-off in Parliament. The two-day strike by PSU bank employees also weighed on the sentiments. Yesterday we had mentioned that an upward trend may be sustained if the Nifty remains above the previous day’s low. We continue to maintain that stand. The National Stock Exchange (NSE) saw a slightly higher volume of 52.47 crore shares.


The market opened lower on weak global cues and the political logjam at the Centre. Markets in Asia were down in morning trade on a steep 8.1% plunge in Japanese exports in July. The Nifty opened 25 points lower at 5,396 and the Sensex started off at 17,827, a cut of 58 points from its previous close.


The indices fell to their intraday lows in initial trade with the Nifty going down to 5,395 and the Sensex slipping to 17,800. A weak attempt to emerge into the positive around 10.30 am was met by resistance from sellers, pushing the benchmarks lower again.


Employees of public sector banks in India have gone on two-day nationwide strike on Wednesday opposing banking sector reforms and outsourcing of non-core activities, affecting operations. They are protesting against banking sector reforms and unilateral implementation of the Khandelwal committee report on human resources management in PSU banks. However, several private sector banks, foreign banks and ATMs continued to operate normally.


Select buying lifted the indices into the green in the post-noon session. The gains enabled the market hit its intraday high around 2.30pm. At this point, the Nifty rose to 5,433 and the Sensex climbed to 17,912.


However, selling pressure in late trade saw the indices dip into the negative once again. The market snapped its two-day winning streak and closed in the red on unsupportive global cues and the stand-off in Parliament for the second day following the CAG report that was released last week. The Nifty closed eight points lower at 5,413 and the Sensex finished the trade at 17,847, down 38 points.


The advance-decline ratio on the NSE was in negative at 675:756.


In line with a negative close of the Sensex, the broader indices also settled with similar losses. The BSE Mid-cap index fell 0.21% and the BSE Small-cap index declined 0.22%.


The sectoral gainers were BSE Healthcare (up 0.38%); BSE Auto (up 0.24%); BSE IT (up 0.14%); BSE PSU (up 0.12%) and BSE Bankex (up 0.04%). The top losers were BSE Realty (down 0.97%); BSE Power (down 0.82%); BSE TECk (down 0.42%); BSE Capital Goods (down 0.41%) and BSE Consumer Durables (down 0.30%).


The leaders in the Sensex list were Dr Reddy’s Laboratories (up 1.05%); Coal India (up 0.94%); Infosys (up 0.93%); Bajaj Auto (up 0.86%) and Hero MotoCorp (up 0.85%). The key losers were Bharti Airtel (down 3.85%); NTPC, Sterlite Industries (down 1.32% each); GAIL India (down 1.04%) and Reliance Industries (down 0.90%).


The top two A Group gainers on the BSE were—Indian Hotels (up 4.52%) and Atstrazeneca Pharma India (up 4.25%).

The top two A Group losers on the BSE were—Opto Circuits (down 6.39%) and TTK Prestige (down 4.94%).


The top two B Group gainers on the BSE were—AGC Networks (up 19.99%) and IL&FS Engineering and Construction (up 19.96%).

The top two B Group losers on the BSE were—Plethico Pharmaceuticals (down 20%) and Mahavir Impex (down 16.22%).


The key performers on the Nifty were Ranbaxy Laboratories (up 4.28%); BPCL (up 2.67%); Bank of Baroda (up 1.52%); Infosys (up 1.27%) and Dr Reddy’s Laboratories (up 1.05%). The main laggards were Bharti Airtel (down 3.98%); IDFC (down 1.73%); Sesa Goa (down 1.68%); NTPC (down 1.58%) and Sterlite Ind (down 1.49%).


Markets in Asia closed lower on weak exports data from Japan on lower demand, mainly from Europe on account of the lingering debt crisis. Exports slumped 8.1% year-on-year in July, the most in six months. The Japanese data follows a similar weakening exports trend from Taiwan, South Korea and China.


The Shanghai Composite declined 0.50%; the Hang Seng dropped 1.06%; the Nikkei 225 fell 0.27%; the Straits Times retreated by 0.53%; the Seoul Composite slipped by 0.41% and the Taiwan Weighted lost 0.14%. Bucking the trend, the KLSE Composite rose 0.15%.


At the time of writing, CAC 40 of France was down 0.50%, DAX of Germany was down 0.73% and UK’s FTSE 100 was trading 1% lower and the US stock futures were trading in the red.


Back home, foreign institutional investors were net buyers of shares totalling Rs141.37 crore on Monday whereas domestic institutional investors were net sellers of equities amounting to Rs141.64 crore.


Pharma major Venus Remedies today launched a new drug Trois for treatment of arthritis. The drug would provide relief from all kinds of arthritic pains, company's joint managing director and director (research) Manu Chaudhary said in a statement. The stock rose 0.28% to settle at Rs212.10 on the NSE.


Alstom India today said it has bagged a Rs700 crore contract, to be implemented along with state-owned BHEL, for supplying power equipment for Nuclear Power Corporation’s plant at Rawatbhata in Rajasthan. The stock gained 0.92% to close at Rs385.15 on the NSE.


Panasonic India has selected Four Soft for automating its warehousing operations in India. Four Soft, the Hyderabad-based provider of IT solutions for the logistics industry, will deploy 4Selog across 28 warehouses of Panasonic India, the company informed the Bombay Stock Exchange on Wednesday. Four Soft closed at Rs8.10 on the NSE, up 4.52% over its previous close.


Taxes worth Rs58,636 crore locked up in litigation in SC, HCs

The main reason for non-realisation of unrecovered dues include pendency of decision on stay applications by Appellate Authorities, arrear recovery stayed by various Appellate Authorities and Courts, the minister said

New Delhi: Taxes worth Rs58,636 crore are locked up in litigations in the Supreme Court and different High Courts, the government said on Wednesday, reports PTI.
On the Direct Taxes sides, 5,860 cases involved tax demand worth Rs2,707 crore were locked up in Supreme Court. Another 29,650 cases with tax demand of Rs36,340 crore were pending in High Courts.
The information was provided by Minister of State for Finance SS Palanimanickam in a written reply to the Lok Sabha.
As for indirect taxes, 2,855 cases involving Rs8,130 crore were pending with the Supreme Court and 14,626 cases amounting to Rs11,459 crore were lying in different High Courts, he said.
The Minister said that non-recovery of tax dues is mainly attributable to unavoidable processes in law including appellate remedies.
The main reason for non-realisation of unrecovered dues include pendency of decision on stay applications by Appellate Authorities, arrear recovery stayed by various Appellate Authorities and Courts.
In another reply, he said the Income Tax department will not reopen cases where tax assessment proceedings had been finalised and no notice has been sent before 1 April 2012.
Following retrospective amendment to the I-T Act, there were apprehensions in certain sections that the government may reopen the old cases.


Service records of CAG Vinod Rai not traceable admits Government

The DoPT in its reply said, the UPSC application dossier of Vinod Rai is not traceable and hence the information sought for is not materially available

New Delhi: The crucial service records of Comptroller and Auditor General Vinod Rai are not traceable with the Personnel ministry, a reply received under the Right to Information (RTI) Act has revealed, reports PTI.
A Lucknow-based journalist had sought from the Department of Personnel and Training (DoPT), the service records of Rai which included certificate of selection in the Indian Administrative Service (IAS), appointment letter among other details.
Responding to the queries, the Department said the files sought were not traceable.
The Ministry, while replying to his query, seeking high school and date of birth certificate, said, "The UPSC application dossier of Vinod Rai, IAS (KL:1972) is not traceable. Hence the information sought for by you is not materially available with the undersigned." 
A similar reply was given to the journalist's queries regarding service records of 64-year-old Rai, who has hogged media headlines after CAG reports on 2G Telecom spectrum allocations, coal block allocation, Delhi Airport and Commonwealth Games indicated serious irregularities.
The journalist was advised by Department of Personnel to contact the Kerala Government with regards to queries on retirement from the service as the matter was "closely related" with the state.
"Your query is more closely concerned with the Government of Kerala. If deemed fit you may contact the state government of Kerala in this regard. The undersigned does not have any record in this regard," CIPO and under secretary Narendra Gautam said in the reply.
Regarding Rai's appointment as the Comptroller and Auditor General, the application was transferred to CAG office for reply.


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