Upmove surrendered: Friday Closing Report

If the Nifty breaches the day’s low again we may see it finding support at 5,295

The market settled lower on weak global cues and selling in capital goods and banking stocks. Yesterday we had mentioned that the Nifty has to stay above the day’s low of 5,394 for the uptrend to continue. The index opened almost at this level and struggled to cross but closed below this level. If the index breaches the day’s low again we may see it finding support at 5,295. The National Stock Exchange (NSE) saw a volume of 59.36 crore shares.  This means that the market has declined on higher volumes. 
The Indian benchmarks witnessed a gap down opening on unsupportive global cues. US stocks settled lower overnight as hopes of new initiatives from the Federal Reserve receded and flash manufacturing data from China and Europe for August showed a decline. The economic slowdown, as reflected in the lower-than-expected manufacturing data, resulted in the Asian markets trading lower this morning.
Back home, the Nifty opened 22 points down at 5,393 and the Sensex started off at 17,790, down 60 points from its previous close. The indices hit their highs in initial trade with the Nifty rising to 5,400 and the Sensex going up to 17,823. However, banking, metal, auto and capital goods stocks kept the indices down in subsequent trade. 
The market witnessed a high degree of choppiness from the opening bell itself, which added to the pressure on the benchmarks. Offloading of blue chips by institutional investors kept the indices in the negative.
The benchmarks fell to their lows in noon trade as the negative opening of the key European indices added to the woes in the local market. At the lows, the Nifty went back to 5,371 and the Sensex fell to 17,725. 
The market recovered from the lows in the post-noon session on select buying, but the gains lacked strength, thus keeping the indices in red. The Nifty closed 29 points (0.53%) down at 5,387 and the Sensex settled at 17,873, down 67 points (0.38%).
The advance-decline ratio on the NSE was in favour of the losers at 494:924.
Among the broader indices, the BSE Mid-cap index declined 0.58% and the BSE Small-cap index dropped 0.78%.
The gainers in the sectoral space were BSE Fast Moving Consumer Goods (up 0.34%); BSE Healthcare (up 0.25%) and BSE Auto (up 0.05%). The top losers were BSE Realty (down 1.08%); BSE Power (down 0.80%); BSE Capital Goods (down 0.79%) and BSE Metal (down 0.57%).
The Sensex was led by Coal India (up 2.26%); ONGC (up 1.95%); Cipla, Maruti Suzuki (up 0.88% each) and Sterlite Industries (up 0.63%). The major losers on the index were Tata Steel (down 2.73%); Jindal Steel (down 2.33%); Hindalco Industries (down 1.99%); ICICI Bank (down 1.79%) and Reliance Industries (down 1.55%).
The top two A Group gainers on the BSE were—Jain Irrigation (up 5.16%) and Opto Circuits (up 5.03%).
The top two A Group losers on the BSE were—IFCI (down 16.31%) and Bajaj Finserv (down 6.79%).
The top two B Group gainers on the BSE were—Shelter Infraprojects (up 20%) and Punjab Alkalis (up 19.94%).
The top two B Group losers on the BSE were—Spectacle Infotek (down 14.86%) and Jai Mata Glass (down 14.29%).
The top Nifty gainers were ONGC (up 2.13%); Coal India (up 2.09%); BPCL (up 1.20%); Maruti Suzuki (up 1%) and Sesa Goa (up 0.95%). The top laggards were Reliance Infrastructure (down 3.01%); DLF (down 2.92%); Jaiprakash Associates (down 2.91%); Jindal Steel (down 2.78%) and Tata Steel (down 2.77%).
Markets across Asia closed down as hopes for new initiatives from the Federal Reserve to boost growth diminished and manufacturing data from China and Europe came in lower-than-expected. The tardy progress on resolving the European debt crisis also weighed on investors.
The Shanghai Composite dropped 0.99%; the Hang Seng tanked 1.25%; the Jakarta Composite declined 0.41%; the KLSE Composite fell 0.21%; the Nikkei 225 contracted 1.17%; the Straits Times slipped 0.19%; the Seoul Composite settled 1.17% down and the Taiwan Weighted lost 0.37%.
At the time of writing, the key European indices were down between 0.23% and 0.54% and the US stock futures were marginally down.
Back home, foreign institutional investors were net buyers of stocks totalling Rs311.78 crore on Thursday while domestic institutional investors were net sellers of shares amounting to Rs161.10 crore.
Reliance Power today said it has signed an agreement with China Datang Corporation for a strategic partnership to develop and operate power and energy projects both here as well as overseas, making it the first partnership between the two countries in the power sector. Reliance Power jumped 2.55% to close at Rs86.30 on the NSE.
BASF India Rs1,000-crore greenfield chemicals project at Dahej in Gujarat will be entirely funded by debt from its group company, BASF Co-ordination Centre NV. The debt will come in the form of external commercial borrowings, according to rating agency Crisil. BASF declined 2.81% to settle at Rs639.90 on the NSE.
Jyoti Structures has received domestic and export orders worth Rs1,491 crore. The orders include 400 Kv transmission lines on turnkey basis in India and Kenya, and also project related to rural electrification. The stock surged 5.79% to Rs40.20 on the NSE.


Wellness industry to reach Rs1 trillion mark by 2014: Report

The report from PwC says the 40-plus age group will be the largest potential customer base for the wellness industry

Mumbai: The domestic wellness industry that includes spas, and grooming and fitness products among others, is set to touch Rs95,000 crore in the next two years, reports PTI quoting a study by PwC.


Currently the market is estimated at Rs59,000 crore and cosmetic products contribute to nearly 60% of the segment, a PwC report, which was unveiled at a FICCI event on the industry on Friday, said.


The report says companies are looking at expanding their presence to tier II and III cities as real estate prices work in their favour.


The wellness industry, growing at a compounded annual growth rate of 18-20%, accounts for nearly 4% of the overall consumer expenditure in the country, the report claims.


"The scope in the wellness market is immense. Even a 1% increase in consumer expenditure can potentially generate an additional opportunity of Rs600 crore for wellness players," VLCC managing director Sandeep Ahuja said.


The beauty segment, largely dominated by the hair and skincare products, currently stands at Rs23,000-Rs24,500 crore is set to touch Rs40,000-41,000 crore by 2014, according to the PwC report.


The report also notes that of the Rs5,000-crore fitness and slimming market, 90% is dominated by slimming and fitness services and equipments and the rest by slimming products. The segment is expected to double in two years, it says.


With continued focus on health foods and fortified products, the report says the estimated health and wellness food and beverages segment that is growing at 12% annually will be Rs21,000 crore by 2014.


On the distribution model for this segment, the report notes that with limited reach across the country, e-commerce will become the most preferred method to interact with the customers.


About the growth drivers of the sector, the report says the 40-plus age group will be the largest potential customer base for the wellness industry. The 40-plus age group constitutes nearly 29% of the population and it is expected to touch 500 million by 2025, it adds.


Widespread support for CAG findings on nuclear technology from activists

It is imperative to ensure the safety of nuclear facilities in India, and the welfare of the people residing in the immediate vicinity of nuclear installations, emphasises Dr EAS Sarma, former Union Power Secretary, Government of India

Following the Comptroller and Auditor General of India’s (CAG) audit performance of the Atomic Energy Regulatory Board (AERB), some startling facts have emerged about how the Department of Atomic Energy will be ensuring the safety of nuclear facilities in India, and the welfare of the people residing in the immediate vicinity of nuclear installations, according to Dr EAS Sarma, former Union Power Secretary, Government of India, in an article published on Dialogues and Resources on Nuclear Nature and Society ( He has added that the Department of Atomic Energy (DAE) is underplaying the safety concerns and is projecting the mythical virtues of nuclear technology as though it is infallible.


DiaNuke has added a word of caution from prime minister Manmohan Singh whereby those who have favoured nuclear technology development belong to the ‘thinking’ section of the society. Also, in reference to the safety audits conducted at the existing nuclear facilities in the past, the Prime Minister’s Office (PMO) assured the public on 26 April 2012 that “action taken on previous safety reviews will be put in the public domain.” DAE is yet to do so.


The CAG report has highlighted the following points:

  • AERB has been created as an authority subordinated to DAE, which means the regulator is controlled by the regulated.
  • AERB enjoyed only such powers that DAE thought it fit to grant it. Even in cases of infringement of safety requirements, the penalties under the Atomic Energy Act are too lenient to serve as deterrents.
  • AERB had neither any role in deciding the quantum of the penalties nor in enforcing them.
  • AERB had no role in radiological surveillance of nuclear power plants and in monitoring the health of the workers in the plants.
  • The regulator had no inventory of radiation sources in the country and missing radioactive material can get into the hands of anti-social groups.
  • There are serious gaps in emergency preparedness at the nuclear power plants.
  • There is a need for an elaborate legislative framework within which aging nuclear power plants can be decommissioned.
  • The regulatory practices of AERB have not been subject to periodical peer reviews by independent professionals, both domestic and external.
  • There is a need for an independent regulatory authority for ensuring the safety of the activities in the nuclear installations and consequently, the DAE has come up with Nuclear Safety Regulatory Authority (NSRA) Bill to be enacted by Parliament.


Even the NSRA Bill is not a final solution, as Section 21 of the Bill is bizarre. It reads as “the Authority, while discharging its powers and functions, shall not act against the interest of the sovereignty and integrity of India, the security of the state, friendly relations with foreign States, public order, decency or morality.” According to Mr Sarma, apparently, in its present form, the NSRA Bill will create a regulator who will be as ineffective and powerless as its previous avatar of AERB.


A statement from an anti-nuclear group said, “The obsession with GDP and growth has been behind the plans to expand eco-destructive energy projects—be it nuclear, huge coal-based plants or large dams. An alternative model of development has to be evolved to deal with the present crisis, rather than going for dangerous illusions like pursuing nuclear power. People are resisting these projects which stand to threaten their lives and livelihoods.”


The jury members including social activist Aruna Roy, member of the National Advisory Committee, former Navy chief Admiral L Ramdas, and KS Subrahmaniam heard testimonies of people, who are part of the grassroots movements at sites where nuclear plants were coming up, on 22-23 August 2012 in New Delhi. Nuclear plants are coming up in Kudankulam (Tamil Nadu), Jaitapur (Maharashtra), Chutka (Madhya Pradesh), Gorakhpur (Haryana), Banswada (Rajasthan), and Rawatbhata (Rajasthan).


National Advisory Council member Aruna Roy said in a statement, “Place for dissent is shrinking in our country which is evident in Kudankulam, where non-violent protests are being seen as intolerable by the Indian government.” This was after her visit to Kudankulam nuclear project site in Tamil Nadu.



Resham Thakur

4 years ago

The Indian nuclear power plant projects are the biggest scams of the century, the corrupt politicians, bureaucrats & businessmen are playing havoc with our environment & lives. We have to say absolute NO to Existing & forthcoming nuke power plants in India, all developed western countries like France, Germany & others are switching over to eco-friendly solar power. India is blessed with 365 days of bright sun shine, it's high time we force our corrupt & rogue politicians to cancel the forthcoming nuke power plant projects & switch over to solar power immediately. Plz support the people's anti-nuke agitations all over India. Jai Hind !

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