A reaction is imminent
For the fifth week in a row the market has ended in positive, making the Sensex and the Nifty to close at its highest since 31 October 2011. Both the indices rose 2% over the week. Except for Monday when there was huge loss on the bourses, all other four trading session recorded gains and each day the both the indices making a higher high and higher low. From here we may see the Nifty moving in the range of 5,220 and 5,395. The market is liable to reverse anyday though the trend is firmly up.
Snapping its three-day winning streak in the last week of January, the domestic market opened lower on Monday tracking the Asian bourses which were mostly lower on unending Eurozone debt concerns. Fitch Ratings on 27th January downgraded the sovereign credit ratings of Italy, Spain Belgium, Cyprus and Slovenia, indicating there is a chance of further downgrades in the next two years. However, on Tuesday, the domestic market opened higher, tracking gains in the Asian region in morning trade following reports that European leaders on Monday supported plans for greater fiscal integration in Europe.
On Wednesday, concerns about the government’s excessive borrowing, as pointed out by the RBI, kept the market lower in the fist session. The market moved sideways till noon trade after which concerns raised by the RBI over the government’s excessive borrowing pushed the benchmarks to the day’s lows. The Asian markets, which opened mixed on economic growth concerns, closed mostly higher on support from the European bourses. While Chinese government data showed a rise in manufacturing output last month, the HSBC Manufacturing PMI data disappointed investors. The Thursday’s upmove was dented with the Supreme Court’s verdict in 2G telecom scam, when the Court ordered the Department of Telecommunications to cancel all the 122 mobile telecom services licenses it allotted after January 2008.
On Friday, the Asian indices opened cautiously and the domestic indices too were range bound for the major part of the trading session but surged towards the end. At the end of the session the Asian market were a mixed bag ahead of key US jobs data which will be out later today, which will offer more clues over the global growth and appetite for risk, while Greek debt restructuring talks dragged on.
The US market ended in positive on Friday on the back of stronger than expected job growth in the month of January drove the unemployment rate down to its lowest level in almost three years
The Sensex gained 371 points to close at 17605 while the Nifty gained 121 points to close at 5326
Except for BSE capital goods (fell 1%), BSE Consumer durable (fell 3%), all other 11 sectoral indices ended in positive, with major gain seen in BSE Realty index (rose 5%) followed by BSE Auto (rose 4%)
The toppers in the Sensex stocks were D L F Ltd (up 9%), Hero Motocorp and Tata Power both rose 7%, Hindalco Industries ( rose 6%), Tata Consultancy Services (rose 5%) while the on the losing side were Coal India and BHEL both fell 4%, Larsen & Toubro fell 2%, I T C Ltd and HDFC both fell 1%
The toppers in the Nifty were D L F Ltd (up 9%), Jaiprakash Associates (up 8%), Sesa Goa, Hero Motocorp, Tata Power (up 7% each) while the bottom five were Larsen & Toubro and Cairn India fell 2% each, Reliance Communications and BHEL (fell 3% each), Coal India (fell 4%)
Dr Swamy, who exposed the shady nexus between politicians, bureaucrats, media & lobbyists, is the chief guest at Moneylife Foundation’s second anniversary function on Sunday at Mumbai
Now that the Delhi trial court has dismissed Dr Subramanian Swamy’s petition to prosecute P Chidambaram, speculations are rife as to what direction the matter will take. The 2G scam is possibly the biggest scam that India has witnessed. Naturally, since it was exposed, the nation has tracked the progress of the case keenly.
Incidentally, Dr Swamy will be there in Mumbai at Moneylife Foundation’s second anniversary program and speak about the 2G scam and its implications and the role everyone can play to make a difference.
For programme details click here
The Janata Party president is the man who had exposed the shady nexus between politicians, bureaucrats, media and lobbyists and put several powerful ministers and biggest names in the telecom industry in the dock in the 2G scam.
The trial court’s decision has come as a breather to the government which is encountering embarrassments almost on a daily basis. However, everyone is watching with even more interest what Dr Swamy will do next.
But one doesn’t have to wait till Monday for the latest updates. On 5th February, Sunday, Dr Swamy is going to speak on the 2G case about his battle against corruption; and his progress so far.
If you want to know more on the issue, and know how it will affect you, join us for a very interesting and informative session with Dr Swamy.
In a little reprieve to Home Minister, the special court dismissed the plea of Dr Swamy to make Mr Chidambaram co-accused in the 2G spectrum allocation scam
Dr Subramaian Swamy, president, Janata Party said he will file an appeal in the High Court and place more evidence on record after his plea to make Home Minister P Chidambaram co-accused in the 2G scam was dismissed by the trial court.
Justice OP Saini of the Special Court while delivering his verdict said, "....prayer of Swamy to make Chidambaram an accused is dismissed".
Speaking with reporters outside the Court, Dr Swamy said, "I am surprised by the verdict. This order deserves to be reversed. I will not give up and will approach the High Court within three months".
Dr Swamy had moved the Court seeking to make Mr Chidambaram as co-accused in the 2G spectrum scam. The Janata Party president alleged that Mr Chidambaram, the then finance minister, is as culpable as former Telecom Minister A Raja in determining the prices of the spectrum and in allowing the dilution of shares by telecom companies post allocation.
Earlier this week, the Supreme Court referred the matter on probing Home Minister P Chidambaram's role in the 2G scam to the Central Bureau of Investigation (CBI) Special Court.
On Thursday, the apex court cancelled all licences given to 11 telecom companies issued after January 2008. The Court observed that 85 out of the 122 licences granted by the UPA government on or after 8 January 2008 were outside the eligibility criteria for allocation of the 2G spectrum. "The 122 licences for 2G spectrum were granted in arbitrary and unconstitutional manner," the Court said.
In another important judgement, the Supreme Court refused to sanction a Special Investigation Team (SIT) to over-see the CBI inquiry in the 2G spectrum allocation scam. Instead, the apex court said, the Central Vigilance Commission (CVC) should monitor the investigation and the CBI should submit its status reports in sealed envelopes to the Commission.