Uptrend on BSE Sensex, Nifty still intact: Friday Closing Report

Previous day’s low has to be watched out for a reversal in trend


The market brushed aside the lower GDP numbers and closed in the green for the fourth day in a row. Once again, the Nifty made a higher high and higher low today. The low of 5,828 is the highest since 26 April 2011. We continue to see the uptrend remaining firm, however, the previous day’s low has to be watched out for a reversal in trend. The National Stock Exchange (NSE) saw a volume of 126.39 crore shares and an advance decline ratio of 1123:671.


Continuing its upmove, the Indian market opened higher on signs of an improvement in the economy, as pointed out by global agencies Moody’s and Goldman Sachs this week, and positive global trends. However, local investors were cautious ahead of the GDP (gross domestic product) numbers for the September quarter.


The Nifty opened 11 points higher at 5,836 and the Sensex started off at 19,230, up 59 points over its previous close. Buying in metal, capita goods and realty sectors led the market in early trade.


However, the benchmarks soon pared their gains on nervousness about the economic growth data. The declined saw the indices touching their intraday lows at around 10.45am. At the lows, the Nifty fell to 5,828 and the Sensex retracted to 19,186.


Meanwhile, the Indian economy grew by 5.3% in the July-September period of the current fiscal compared to 6.7% in the same period of the last fiscal. GDP in the first quarter of FY 2013 stood at 5.5%.


The September quarter GDP numbers coming in line with analysts’ expectations once again pushed the market higher. The market climbed to its high in noon trade with support from metal, power, PSU and oil and gas sectors. The gains helped the indices hit their highs wherein the Nifty touched 5,875 and the Sensex rose to 19,346.


Profit booking after the indices hit their highs saw the market paring a small part of its gains, but it ended in the green for the fourth straight day. The Nifty gained 55 points (0.94%) to settle at 5,880 and the Sensex closed the session at 19,340, up 169 points (0.88%).


Among the broader indices, the BSE Mid-cap index climbed 1.10% and the BSE Small-cap index advanced 0.82%.


The top performers in the sectoral space were BSE Metal (up 2.07%); BSE Power (up 1.77%); BSE PSU (up 1.70%); BSE Bankex (up 1.46%) and BSE Consumer Durables (up 1.40%). The laggards were BSE Auto (down 0.32%); BSE Fast Moving Consumer Goods (down 0.24%) and BSE Realty (down 0.20%).


Twenty three of the 30 stocks on the Sensex closed in the positive. The main gainers were Jindal Steel (up 5.39%); BHEL (up 4.92%); ONGC (up 4.44%); Sterlite Industries (up 3.24%) and Hindalco Industries (up 2.65%). The main losers were Hindustan Unilever (down 1.72%); Tata Motors (down 1.44%); Bajaj Auto (down 1.13%); Maruti Suzuki (down 0.93%) and Coal India (down 0.80%).


The top two A Group gainers on the BSE were—Indiabulls Financial Services (up 10.61%) and Suzlon Energy (up 8.80%).

The top two A Group losers on the BSE were—Apollo Hospitals Enterprise (down 7.95%) and NHPC (down 3.64%).


The top two B Group gainers on the BSE were—UltraTech Cement (up 7.91%) and Bayer CropScience (up 5.91%).

The top two B Group losers on the BSE were—Zee Entertainment (down 3.58%) and Container Corporation of India (down 3.03%).


Out of the 50 stocks listed on the Nifty, 40 stocks settled in the positive. The major gainers were UltraTech Cement (up 5.49%); Jindal Steel (up 5.47%); BHEL (up 5.33%); ONGC (up 4.41%) and IDFC (up 3.32%). The key losers were Ranbaxy Laboratories (down 1.73%); HUL (down 1.66%); Tata Motors (down 1.31%); Maruti Suzuki (down 1.24%) and Bajaj Auto (down 0.89%).


Markets in Asia closed mostly higher on optimism that US lawmakers will clinch a budget deal and news that the Japanese Cabinet approved a second round of stimulus worth 880 billion yen ($10.7 billion), ahead of next month’s elections.


The Shanghai Composite surged 0.85%; the Hang Seng gained 0.49%; the KLSE Composite rose 0.22%; the Nikkei 225 advanced 0.48%; the Straits Times climbed 0.79% and the Taiwan Weighted surged 1.02%. On the other hand, the Jakarta Composite declined 0.99% and the Seoul Composite lost 0.10%.


At the time of writing, key markets in Europe were trading with minor gains and the US stock futures were marginally higher.


Back home, foreign institutional investors were net buyers of shares totalling Rs1,579.97 crore on Thursday while domestic institutional investors were net sellers of stocks totalling Rs896.22 crore.


Thermax has won a Rs 503-crore EPC (engineering, procurement and construction) order from a NMDC to set up a captive power plant for its new three million tonne per annum integrated steel plant in central India. The order also includes a water de-mineraliser plant, cooling water system and ventilation systems. Thermax declined 1.43% to close at Rs584 on the NSE.


State-run power sector lender Rural Electrification Corporation (REC) today said its public issue of tax-free bonds aimed at raising up to Rs4,500 crore will open for subscription on 3rd December and will close on 10th December. The proceeds will be utilised for normal lending operations in the power sector and infrastructure projects to augment resource base of the company. The stock gained 0.70% to close at Rs230.65 on the NSE.


Structural reforms and re-establishment of fiscal discipline are key for India’s growth: BNP Paribas

Structural reforms and the re-establishment of fiscal discipline are needed for the economy to return to over 7% GDP growth rates, says BNP Paribas Asian Instant Insight

Indian GDP (gross domestic product) growth nudged down to 5.3% y-o-y (year-on-year) in Q2 FY2013 from 5.5% previously. Seasonally adjusted, GDP is estimated to have risen by just 4.1% q-o-q (quarter-on-quarter) annualised. On the expenditure side, sluggish consumption growth was noticeable. On the output side, manufacturing and agricultural outputs were weak. GDP growth for FY2013 as a whole now looks on course for 5.4%. These are the main points highlighted in another tepid GDP report, which underlines the marked deterioration in India’s macro-fundamentals in recent years. This analysis is by Richard Iley, Asian Instant Insight, BNP Paribas.


The BNP Paribas analyst points out that the silver lining is in the trend GDP probably still being close to 7%. Considerable slack is opening up, paving the way for some limited easing by RBI perhaps as early as January 2013. But structural reforms and the re-establishment of fiscal discipline are needed for the economy to return to 7%+ growth rates.


There is however, a stark warning from the BNP Paribas analyst that the politicians in power in India may not be ready for the discipline that is required. The chaotic start to Parliament’s Winter Session reinforces how difficult this will be, given India’s dysfunctional and fractious politics. A radical recasting of India’s growth versus inflation mix looks unlikely. And if the reform push stalls, the 5%-6% growth rates seen over the last year will become increasingly locked-in.


Giving reasons while analysing the GDP data, BNP Paribas says that the main reason for the low GDP growth was the weakness in agricultural output. Despite the late improvement in this year’s monsoon, further weakness is probable next quarter in agricultural output. Services output particularly in the hotels and distribution category was also somewhat softer than anticipated. Its growth was sluggish at 7.2% y-o-y. Manufacturing output, up just 0.8% y-o-y, was also an important contributor to the lower growth in the economy. Monthly industrial production data indicate that little improvement is likely next month.


On the expenditure side, fixed asset investment improved a little but, at 4.1% y-o-y, it continues to undershoot overall GDP growth. Kickstarting the investment cycle remains the key to reviving growth, observes BNP Paribas. Private consumption also continued to slow, up just 3.7%, suggesting that slow growth is denting labour market performance even as stubborn rates of food inflation are eating into disposable income. Lastly, export growth was also muted, up 4.3%, reminding that India is not immune from sluggish global growth, particularly the recessionary Eurozone.


According to the prediction by the BNP Paribas analyst, the RBI (Reserve Bank of India) may choose to look through the woes of the economy and cut interest rates as early as January. Given tight liquidity, an earlier (and further) CRR cut at its December policy review looks likely too.


Finally, while the government’s intentions are sincere, there are constraints which the current UPA government faces in effecting even limited reform measures, concludes BNP Paribas.


SC notice to Centre on PIL challenging Aadhaar implementation

The PIL filed by retired Karnataka High Court judge, Justice KS Puttaswamy and advocate Parvesh Khanna questioned the government's decision of issuing Aadhaar numbers to citizens while the National Identification Authority of India Bill, 2010 is pending before the Rajya Sabha

New Delhi: The Supreme Court on Friday sought the Centre's response to a plea challenging the implementation of the 'Aadhaar' scheme, aimed at providing a unique identity number to all Indians, without any legislative nod, reports PTI.
A bench comprising Chief Justice Altamas Kabir and Justice J Chelameswar issued notice to the Ministry of Finance, Planning Commission and the Unique Identification Authority of India (UIDAI), set up to implement the scheme, seeking their replies on the contention that the Parliament was "circumvented" in implementation of the scheme.
The public interest litigation petition, filed by retired Karnataka High Court judge, Justice KS Puttaswamy and advocate Parvesh Khanna questioned the government's decision of issuing Aadhaar numbers to citizens while the National Identification Authority of India Bill, 2010 is pending before the Rajya Sabha where it was introduced on 3 December 2010.
The Bill, for the purpose of giving legal backing to the scheme, was referred by the Rajya Sabha to the Standing Committee (Finance) which had rejected it by overwhelming majority on 11 December 2011, the petitioners have said.
"Whether the executive power vested in the Union under Article 73 of the Constitution can be exercised by avoiding the consideration of a Bill on the same subject pending before the Parliament and after its rejection by the Standing Committee.. and circumventing the Parliament?", the plea asked.
The petitioners in their plea have sought directions to the government to prevent it from acting upon its notification of 28 January 2009 and from by-passing or circumventing the passage of the Bill by Parliament after discussion, debate and voting.
The government through its notification of 28 January 2009 had set up the UIDAI for issuance of AADHAAR numbers and cards to all Indian citizens.
The UIDAI would maintain a database of Indian residents, containing their biometric and other details.




4 years ago


REVENUE CARD !! for land holders? !!!!

Govt. must make it mandatory - ATM CARD, DEBIT CARD, CREDIT CARD for all citizens of India.

Hope Government would give subsidy for buying a bag for carrying all these cards ! Subsidy can be directly credited to bank Accounts. No Problem


4 years ago

This is precisely what many in the media and activists have been saying for the past two years. I recently shared my experience in this respect with Airtel who refused to accept my AADHAAR card as a valid (and legal) ID-cum-residence proof. I have already written to Mr. Nilekani and TRAI. TRAI, as a rule, never responds to any citizen's grievances, and I do not expect them to respond this time too. But I did expect a frank admission by the UIADAI authorities that the card indeed is without any legal sanction (unlike PAN), though the Railways and some other Govt authorities are accepting AADHAAR as valid. Meanwhile, the UIADAI are going ahead with a repeat of the same exercise covering the very people already holdong these cards!

P M Ravindran

4 years ago

Thank God a retired high court judge has taken up cudgels against the atrocious decision of a few people holding constitutional offices to thrust an impractical and unaffordable project on the hapless and tyrannized citizens of this country. When developed countries with a fraction of our population have given up such fancy schemes due to cost and security concerns the only reason for the people who took the decision to implement it in India should be loot and brazen it out! It is also to be noted that even after 65 years of existence the concerned authorities have not been able to even provide ration cards or voter's identity cards to all citizens!

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)