Uptrend on Sensex, Nifty still going strong: Wednesday closing report

A close below any previous day’s low will signal a reversal.

All the Asian indices opened in the positive and so did the indices back home. This was on the back of a strong overnight lead from the US and Europe. The Sensex opened at 19,950 while the Nifty opened at 6,064. Yesterday we mentioned that a close below any previous day’s low will signal a reversal. We continue to maintain the stance. The NSE saw volume of 58.51 crore shares which is similar to yesterday.
Except for a short while when the indices traded in the negative for rest of the trading session the benchmark was trading well in the positive and closed in the positive for the third consecutive trading session. The Sensex and the Nifty hit a high low of 19,851 and 6,025 respectively. The benchmark hit a high of 20,037 and 6,084 and closed almost at the day’s high. Sensex closed at 19,990 (101 points up, 0.51%) while the Nifty closed 6,069 (26 points up, 0.43%). 
The broader indices closed in the positive. The BSE Mid-cap index rose 0.47% and the BSE Small-cap index rose 0.47%.
Only 4 of the sectoral indices closed in the positive. The top sectoral indices were BSE FMCG (up 1.43%); BSE Bankex (up 0.11%); BSE Oil & Gas (up 0.11%) and BSE Healthcare (up 0.08%). Among the losers were BSE Capital Goods (down 0.65%); BSE Auto (down 0.46%); BSE Metal (down 0.36%); BSE Power (down 0.31%) and BSE PSU(down 0.14%). 
Fourteen of the 30 stocks on the Sensex closed in the positive. The chief gainers were HDFC (up 3.85%); ITC (up 2.27%); HDFC Bank (up 1.38%); Hindustan Unilever (up 1.23%) and Hindalco Inds (up 0.83%). The key losers were Bharti Airtel (down 1.82%); Hero MotoCorp (down 1.78%); Tata Steel (down 1.45%); Mahindra & Mahindra (down 1.35%) and Jindal Steel (down 1.13%).
The top two A Group gainers on the BSE were— Corporation Bank (up 6.80%) and Bajaj Finance (up 6.19%).
The top two A Group losers on the BSE were— Indian Bank (down 4.26%) and Oracle Financial Services Software (down 3.89%).
The top two B Group gainers on the BSE were— Godfrey Phillips (up 20%) and Venus Remedies (up 19.99%).
The top two B Group losers on the BSE were— NCL Research (down 20%) and Bio Green Papers (down 19.71%).
Of the 50 stocks on the Nifty, 23 ended in the green. The key gainers were HDFC (up 4.75%); ITC (up 2.83%); Lupin (up 2.57%); UltraTech Cement (up 2.51%) and Indusind Bank (up 2.08%). The major losers were Ranbaxy (down 3.08%); Bharti Airtel (down 2.37%); Tata Steel (down 1.76%); Hero MotoCorp (down 1.71%) and Bank of Baroda (down 1.43%).
Back home the parliament was adjourned sine die on Wednesday, two days before scheduled end of the Budget session without passing crucial bills like the Food Security Bill and the Land Acquisition Bill. The session, one of the least productive on record, has been disrupted for two weeks over various issues. 
Meanwhile, the Congress party got majority in Karnataka assembly elections and ousted the BJP to form the government in the state. This will cheer the bulls tomorrow.
Adding to the optimism was the better-than-expected trade performance from China. China posted an $18.16 billion trade surplus in April after reporting an unexpected $884 million deficit in March. Exports rose by 14.7% in April from a year earlier, data from the General Administration of Customs showed today, 8 May 2013. This was faster than March's 10% rise. Imports rose 16.8% from a year earlier compared with a 14.1% rise in March.  
Except for KLSE Composite (fell 0.15%) all the other Asian indices closed in the positive. The highest gainer was Taiwan Weighted which was up 1.27%. The European indices were trading in the green and so were the US Futures. 
The board of directors of Viceroy Hotels at its meeting has approved the proposal to sell the entire 'Chennai Project Division' comprising of 'Chennai Hotel Project’ and "Chennai Residential Project" to M/s. Ceebros Hotels Private Limited, Chennai for a total consideration of Rs480 crores. The stock rose 3.70% to close at Rs 19.60 on the NSE. 
The board of directors of Sundaram Clayton declared a second interim dividend of Rs5 per share (100%) for the year ended March 31, 2013. The board earlier declared the first interim dividend of Rs9 (180%) per share for the year 2012-13 and the same was paid on February 19, 2013. The stock rose 1.10% to close at Rs 338.55 on the NSE


Vinati Organics net sales up by 20% but operating profit is up only 4%

The company has delivered on the sales front but saw weak operating profit and benign net profit growth

The net sales of Vinati Organics increased 20% for the quarter ended March 2013 over the same period last year. For the same quarter, operating profit grew 4% y-o-y to Rs37.46, after a particularly dismal third quarter. However, Vinati reported Rs21.46 crore net profit for the quarter ended March 2013 when compared to the Rs20.27 crore for the corresponding period last year.

Vinati Organics has put on a string of consistent showing on the sales front but has disappointed the previous and current quarters when it comes to operating profit. Net sales grew at 20% y-o-y which is inline with the company’s three-quarter y-o-y average growth rate of 22%. The company’s return on networth and return on capital employed are impressive at 24% and 35% respectively. Despite this the market has valued the company cheaply, with market capitalisation quoting at just over three times operating profit.

A closer look into the company’s shareholding pattern reveals that promoters hold 74.99% of the total shares outstanding. Institutions hold 2.37%, while the Indian public holds 22.64%, of the shares outstanding.

The board of directors of the company has recommended a dividend of 125% on the share capital of the Company, or Rs2.50 per equity share of face value of Rs2 each for the year ended 31 March 2013.

Vinati Organics is a specialty chemical company producing organic intermediates, monomers and polymers.

The stock is part of the Kensource Stockletter picks. For more information on Kensource
Stockletters, please check out this link.



Ramesh Poapt

4 years ago

Good report!seems a pick ,and notlike 'anylists(malafide)choice'.
ML had rightly reported about Venus Remedies and few other good buys.Pl continue such ideas..

SEBI still not ready to share PMS data despite CIC order

In January, the Central Information Commission directed the market regulator to upload from April onwards information about PMS schemes on its website. Despite assurance from SEBI to the CIC, it has not uploaded any data on PMS for which Moneylife has been fighting a long battle

Market regulator Securities Exchange Board of India (SEBI) has refused to share information on portfolio management services (PMS) in the public domain as the deadline to disclose the same by April has passed by. Despite an order from the Central Information Commission (CIC) and subsequent assurance, the market regulator has not yet uploaded any data on PMS on its website. After fighting with SEBI for over a year, the CIC had ruled in favour of Moneylife and directed the market regulator to publish the data related with PMS on its portal.

Our email and SMS to SEBI officials asking about the compliance to the CIC order has remained unanswered till writing this report.

After the order from Chief Information Commissioner (CIC) Satyananda Mishra, issued after a hearing conducted on 17 January 2012, SEBI wrote to Moneylife assuring compliance with the order. In a letter on 18 February 2013, SEBI stated, “The Information Technology Department of SEBI is devising a suitable mechanism/link so that the monthly report received from the portfolio managers for the month of April 2013 and onwards may be transferred to the SEBI website. Accordingly, efforts are being made to make available the monthly report of the portfolio manager on the SEBI website for the month of April 2013 and onwards.”

Moneylife wrote an email to SEBI and requested for the link. Nevertheless, so far there is no response from the market regulator.

Earlier, Moneylife had won a hard fought case, which lasted more than a year, against SEBI to obtain details and performance of all the PMS schemes. In its 2nd RTI appeal hearing held on 17 January 2013, the CIC had ordered SEBI to disclose all the details of PMS schemes and upload the same on the website from April onwards.

This order not only represents a big victory for Indian investors and comes at the end of a long battle by Moneylife to ask the regulator to make PMS schemes more transparent. For the past three years, Moneylife has also helped several investors recover funds, wrongly deducted by PMS. The wrongful losses have extended from a few lakh rupees to as much as Rs1 crore.

The CIC’s order said, “We have carefully considered the facts of the case and the submissions made before us. It is an admitted fact that the desired information is available with SEBI, if not on an annual basis, at least on a monthly basis. Since this information is received electronically, it’s publication through the website would not be a difficult task. By publishing such information about all Portfolio Management Services (PMS) regulated by it, SEBI would serve two objectives. One, help the investing public to access all information at one place and not have to visit 50 different websites and, two, eliminate the need for seeking such information under RTI, from time to time”.

A more detailed report on how Moneylife had won the case can be read over here: Power of RTI: CIC directs SEBI to disclose all information related to PMS.

Last year, SEBI had stonewalled our initial RTI application for disclosure of PMS schemes, when it cited under the pretense of “fiduciary relationship” as the sole reason for not providing information. The story can be read here: SEBI misrepresents public information on PMS as fiduciary; offers mindless response to simple RTI query.

Horror stories of past PMS looting investors prompted us to file an RTI against SEBI to disclose information of such schemes, in order to make it the system more transparent. You can find some alarming cases Moneylife had covered, in detail, over here:

  1. Sordid Tales  of Kotak PMS.
  2. Broking Houses Make Investors Go Broke.

Unless information pertaining to PMS is put up, investors will continue to find it difficult to decide which PMS to invest in and make informed decision. Moreover, without such information, gullible investors will be hardsold such poor PMS schemes, which will lead to capital erosion as evidenced by the stories written above.




4 years ago

Who says SEBI is there to protect only one or two upright officers protect, ultimately what they get a kick in the ass.


4 years ago

No doubt MLF team is putting on relentless efforts to protect investors,

But, SEBI has bosses in Delhi under whose directions the data is not put up as directed by CIC.


4 years ago

SEBI was formed to protect Investors. It must understand this and prove their responsibility.
Moneylife deserves full complements for taking lot of pains and pursue the cause of the investing public.


4 years ago

Increasing the minimum amount is one way but then also there should be strict regulation and disclosure because neglecting it would give a wrong message that investors with big money can be duped or are available for misuse. This will weaken the faith in law. It should not happen. There are people who have earned their crores by honest and genuine hard work. Secondly, why the govt. machinery, regulators, committees take so much of time to understand the problem in a particular scheme or financial product is unimaginable because there is so much written in the media about such schemes, a very general observation can give you an idea of what is the problem in the scheme and then it should be plugged before it getting to the size of the current issue of PMS.



In Reply to DB DESAI 4 years ago


Dilip Samant

4 years ago

Congratulation. Keep it up.

Suiketu Shah

4 years ago

Terrific battle by moneylife.Great work.I am very interested in the PMS performance of HDFC Bank.

Once this data is available to the general public,almost noone wl go for PMS,the record wl be so disastrous.

Glancy Xavior

4 years ago

SEBI is here to PROTECT the interest of investors(as per law). Then why they are reluctant to come out with the DISCLOSURE? Message clear... Protect the interest of Portfolio managers.

We are awaiting for a verdict of Supreme court Case on making the Exchanges(NSE/BSE) under RTI Act

Vaibhav Dhoka

4 years ago

Now its SEBI's turn to get rap on its knuckles as in COALGATE scam .

R Balakrishnan

4 years ago

A strong case exists to raise the minimum investment size to a crore or more, so that the tiny guys with five lakh etc do not enter this space. Once that is done, it hardly matters whether PMS performance is disclosed or not. Someone with a crore can afford to be ignorant. The problem is that we let small guys in to every show in town and then these guys get ripped off. Children should not be given access to adult movies



In Reply to R Balakrishnan 4 years ago

Very well said sir. . . and how about disallowing those adults who behave like children.

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