Uptrend intact on the Sensex, Nifty: Tuesday Closing Report

Subject to the Nifty holding itself above the day’s low

Profit booking after nine days of gains led the market lower today. A weak trend in the global markets also played on the sentiments. Today the Nifty saw marginal loss, however, the uptrend is likely to remain intact if the index manages to hold itself above day’s low. The benchmark made a lower high after nine trading days but continued to make a higher low for the fifth consecutive day. The National Stock Exchange (NSE) saw high volume of 91.62 crore shares while the advance decline ratio was 882:556.


The Indian stock exchanges will remain closed on Wednesday for a local holiday.


The market opened lower today as traders resorted to profit booking following the nine-day rally. A weak trend in the global stock markets also weighed on the sentiments. The Nifty resumed trade at 5,602, down eight points from its previous close and the Sensex started off 27 points lower at 18,515. Metal, auto and banking stocks were under selling pressure in early trade.


Volatility since the opening of trade kept the benchmarks on both sides of their previous close. Buying interest in banking and fast moving consumer goods sectors enabled the market to hit its intraday high at around 10.30 am. At this point the Nifty rose to 5,621 and the Sensex went up to 18,580.


Soaring vegetable prices pushed up the retail inflation to double digits at 10.03% in August, up from 9.86% in the previous month. In the urban areas, the CPI rose to 10.2% during the month as compared to 10.1% in July. The retail price rise in rural areas worked out to be 9.9% during August up from 9.8% in the previous month.


The indices could not maintain their gains as selling pressure pushed the stock market into the negative once again. Subdued opening of the European stock markets kept the local benchmarks in the red in noon trade.


 The market continued to drift further southward in post-noon trade on the back of profit booking in blue chips. The Nifty dipped to its intraday low at the start of trade with the index touching 5,586 while the low on the Sensex was seen in the last half hour as the index fell to 18,469. The market snapped its nine-day winning streak to close almost flat with a negative bias.


The Nifty settled 10 points lower at 5,600 and the Sensex finished the session at 18,496, down 46 points.


It was the day of the broader markets today as they outperformed the Sensex and settled in the green. The BSE Mid-cap index gained 0.88% and the BSE Small-cap index advanced 0.73%.


The top sectoral gainers were BSE PSU (1.58%); BSE Capital Goods (up 0.90%); BSE Power (up 0.88%); BSE Bankex (up 0.69%) and BSE Realty (up 0.49%). The ones that settled at the bottom were BSE Oil & Gas (down 1.13%); BSE IT (down 0.54%); BSE Healthcare (down 0.22%); BSE Metal (down 0.19%) and BSE TECk (down 0.09%).


Thirteen of the 30 stocks on the Sensex closed in the positive. The key gainers were BHEL (up 5.44%); State Bank of India (up 3.59%); GAIL India (up 3.01%); Jindal Steel (up 2.64%) and Infosys (up 1.45%). The top losers were Wipro (down 3.79%); TCS (down 3.02%); Hindalco Industries (down 2.13%); Reliance Industries (down 2.11%) and NTPC (down 1.51%).


The top two A Group gainers on the BSE were—IFCI (up 13.45%) and Oriental Bank of Commerce (up 12.97%).

The top two A Group losers on the BSE were—Pantaloon Retail (down 4.05%) and Wipro (down 3.79%).


The top two B Group gainers on the BSE were—Infomedia 18 (up 20%) and Tanla Solutions (up 20%).

The top two B Group losers on the BSE were—Atlanta (down 13.48%) and Indo Count Industries (down 10.76%).


Out of the 50 stocks listed on the Nifty, 25 stocks settled in the positive. The major gainers were Punjab National Bank (up 7.90%); BHEL (up 5.20%); SBI (up 3.39%); Bank of Baroda (up 3.02%) and GAIL India (up 2.71%). The top laggards were Cairn India (down 3.81%); Wipro (down 3.78%); TCS (down 3%), Hindalco Ind (down 2.39%) and RIL (down 2.15%).


Markets in Asia closed lower on worries about the slowdown in Chinese growth. The decline in commodity prices in the global stock markets pulled down the Chinese market, making it the worst performer for the second day.


The Shanghai Composite dropped 0.91%; the Hang Seng declined 0.27%; the Jakarta Composite fell 0.74%; the Nikkei 225 slipped 0.39%; the Straits Times retracted by 0.35% and the Taiwan Weighted settled 0.36% lower. Bucking the trend, the Seoul Composite rose 0.13%.


At the time of writing, the key European stock markets were down between 0.81% and 1% and the US stock futures were trading in the negative.


Back home, foreign institutional investors were net buyers of shares totalling Rs2,252.17 crore on Monday whereas domestic institutional investors were net sellers of equities aggregating Rs837.72 crore.


Buoyed by the good response to its recent initial public offering, jewellery retailer Tribhovandas Bhimji Zaveri today said it would invest about Rs1,200 crore in the next three years for opening 43 showrooms across the country. At present, TBZ has 18 showrooms across 11 cities, including metros as well as Tier-1 and Tier-2 cities. The stock settled at Rs118.80 on the NSE, up 1.67%.


Software services major Ramco Systems said it has bagged an order from Wadia Group-owned Go Airlines for its maintenance and engineering (M&E) suite of software. Under the agreement, Ramco will deliver its web-based Series 5 M&E system and Ramco ePublications, including engineering and configuration, maintenance program and planning, line maintenance, technical records and complete materials. Ramco rose 0.30% to close at Rs135 on the NSE.


Leading pipe manufacturer Welspun Corp (WCL) said it has raised Rs252.80 crore by issuing non-convertible debentures (NCDs). The money was raised by the flagship firm of Welspun Group through placement of secured Redeemable Non-Convertible Debentures to investors including banks and financial institutions, it said in a filing to the BSE. The stock rose 0.69% to settle at Rs102.20 on the NSE.


Salman emerges as 'tiger' among Bollywood on tax office too!

While Salman, Akshay, Katrina, Kareena, Saif, Sachin Tendulkar, the Big B and Aishwarya paid higher advanced tax during September quarter, Shah Rukh's tax outgot remained flat, while Aamir paid lower tax compared with same quarter last year 

Mumbai: After a string of Rs100 crore grossing films including 'Dabangg', 'Ready', 'Bodyguard' and 'Ek Tha Tiger', actor Salman Khan has emerged as the highest taxpayer from Bollywood during the September quarter, reports PTI.
Salman, 46, trumped all his peers and rivals from Bollywood by paying Rs8 crore in advance tax as compared to the Rs5 crore in the same period a year ago, an income tax official told PTI.
Salman was last seen in romantic-action-thriller 'Ek Tha Tiger', which has clocked approximately Rs198 crore at the box office. The film's female lead and Salman's speculated former lady love in real life, Katrina Kaif, paid Rs2.60 crore compared to the year ago period's Rs1.70 crore.
Salman's bete noire Shah Rukh Khan, who has not had any big release this year as yet, had his tax outgo flat at Rs5 crore, the official said.
Among the other Khans, Aamir's fortunes seem to have been hurt by his mega reality show Satyamev Jayate, as he paid only Rs3.25 crore this September versus last year's Rs4.50 crore.
Saif Ali Khan, whose films 'Agent Vinod' and 'Cocktail' had varying responses at the box office, paid a tax of Rs3 crore compared to Rs1.7 crore in the year ago period, the official said.
Kareena Kapoor, who is rumoured to be marrying Saif soon, and is looking forward to the release of the film 'Heroine' has paid an advance tax of Rs2.20 crore compared to Rs1.5 crore she did in the same period last year.
Akshay Kumar, another big name in Bollywood, paid Rs7.5 crore advance tax in comparison to Rs5 crore he had paid last year during the same period.
Actor Amitabh Bachchan, who will soon be celebrating his 70th birthday, paid Rs5 crore against the Rs1.4 crore he paid last year while his daughter-in-law Aishwarya Rai Bachchan's outgo jumped to Rs3 crore from Rs1.1 crore, the official said.
Big B, who was at one point of time at the brink of bankruptcy, has only had one release this year in 'Department' which was a box office failure.
Interestingly, Aishwarya has also been away from the silver screen since Sanjay Leela Bhansali's 'Guzaarish' released in 2010.
Meanwhile, master blaster Sachin Tendulkar paid an advance tax of Rs2 crore in comparison to Rs1.75 crore in the same period last year, the official said.
Apart from B-town celebrities, high profile lawyers also had fortunes with Zia Mody emerging the highest with a September quarter payment at Rs3 crore versus the Rs2 crore in the year ago.
Senior counsel Fali Nariman (Rs1.80 crore versus last year's Rs2.10 crore) and corporate lawyer Cyril Shroff (Rs1 crore versus Rs1.10 crore) saw a decline in their tax outgoes, the official added.
Advance tax is a system of staggered payment of tax liabilities and is payable every quarter, based on estimated profits.


RBI Governor Subbarao appears before JPC on 2G

Subbarao, who appeared before the JPC on 2G scam as a former Finance Secretary, told the panel that he was in disagreement with the note which suggested that Chidambaram could have insisted on auctioning the 2G spectrum instead of it being allowed to be allocated on first-come first-served basis

New Delhi: Reserve Bank of India (RBI) Governor D Subbarao on Tuesday appeared before a Parliamentary panel and said he did not agree with the controversial note from Finance Ministry which suggested that Finance Minister P Chidambaram could have insisted on auctioning the 2G spectrum, reports PTI.


He also rejected suggestions that allocation of radiowaves resulted in a loss.


Subbarao, who appeared before the Joint Parliamentary Committee (JPC) on 2G scam as a former Finance Secretary, told the panel that he was in disagreement with the 25 March 2011 note of the Finance Ministry to the Prime Minister which suggested that Chidambaram could have insisted on auctioning the 2G spectrum instead of it being allowed to be allocated on first-come first-served basis.


Chidambaram said in a meeting with then Telecom Minister A Raja on 30 January 2008 that "he was for now not seeking to revisit the current regimes for entry fee or revenue share" of spectrum, the note said.


When asked about the issue of loss incurred by not auctioning the spectrum, Subbarao - who was Finance Secretary between 30 April 2007 and 4 September 2008- is learnt to have said that while there was no loss to the exchequer, even if there was, it was only notional in nature. He said there was no monetary loss in actual terms. "Much depends on perception," he is learnt to have told the JPC.


He is also understood to have said that there was no deliberate delay on his part in responding to a Department of Telecom letter of 29 November 2007 in which he was informed that the entry fee was finalised for the unified access regime in 2003 based on the decision of the Cabinet.


He said he had appraised the Finance Minister about the letter on 9 January 2008 - a day before the licences were allocated.


When some members, including those from the Left Parties and DMK, sought to know why he informed the Finance Minister a day before spectrum allocation, Subbarao is learnt to have said that Finance Ministry was not aware that licences would be granted on January 10. Some members questioned the delay of nearly 40 days in informing the Finance Minister.


The 29 November 2007 DoT letter to Subbarao was in response to his 22 November 2007 letter in which he had asked the Telecom department to justify how it was taking entry fee of only Rs1,650 crore from operators in 2007 as the amount was fixed in 2001.


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