If the Nifty manages to close above any previous day’s high, the downtrend may reverse
The volatile market pared its gains in the second half of trade on selling pressure in IT and metal stocks and settled lower for the fourth day in a row. Today the Nifty fell to a low of 5,190 and closed almost at that level. The index closed below its 20-day moving average of 5,222. If the index manages to close above any previous day’s high we may see some gains, else we may see the benchmark finding its first support at 5,160 and then at 5,075. The National Stock Exchange NSE saw an extremely low volume of 51.57 crore shares.
The market opened marginally higher on cautiousness ahead of the release of the country’s inflation data later in the morning. On the other hand, markets across were in the positive as worries about a slowdown in China eased and the government, on Sunday, assured of additional initiatives to spur growth.
The Nifty opened five points up at 5,232 and the Sensex started the day at 17,242, a rise of 28 points over its close on Friday. The Sensex hit its intraday high in initial trade with the index rising to 17,282 while the Nifty touched its high in the noon session at 5,247.
Meanwhile, the benchmarks hovered on both sides of their previous close in the absence of any positive triggers. The market emerged into the positive in the late morning session as the wholesale price index (WPI) based inflation for June eased to 7.25% from 7.55% in the previous month.
However, the indices erased their gains in post-noon trade and dipped into the red following a statement by agriculture minister Sharad Pawar that sustaining a high growth in foodgrain production would be a challenge in view of the setback in the monsoon so far.
With the key European markets trading lower in early trade, the Indian market settled lower on selling pressure IT and metal sectors. The Nifty declined 30 points to closed below the 5,200-mark at 5,197 and the Sensex finished trade at 17,103, down 110 points.
The advance-decline ratio on the NSE was negative at 608:1051.
Among the broader indices, the BSE Mid-cap index declined 0.62% and the BSE Mid-cap index contracted 0.61%.
BSE Healthcare (up 0.94%); BSE Consumer Durables (up 0.77%) and BSE Oil & Gas (up 0.07%) were the sectoral gainers. The key losers were BSE IT (down 2.34%); BSE Metal (down 1.98%); BSE Realty (down 1.61%); BSE TECk (down 1.30%) and BSE Capital Goods (down 1.02%.
The top Sensex gainers were Bharti Airtel (up 3.85%); Dr Reddy’s Laboratories (up 1.81%); Maruti Suzuki (up 1.62%); Cipla (up 1.17%) and ONGC (up 0.77%). The main losers were Tata Steel (down 3.95%); TCS (down 3.16%); Jindal Steel (down 2.69%); Tata Motors (down 2.63%) and Infosys (down 2.48%).
The top two A Group gainers on the BSE were—Bharti Airtel (up 3.85%) and Muthoot Finance (up 3.48%).
The top two A Group losers on the BSE were—Jaypee Infratech (down 5%) and Adani Enterprises (down 4.60%).
The top two B Group gainers on the BSE were—Thirumalai Chemicals (up 19.99%) and IG Petrochemicals (up 19.93%).
The top two B Group losers on the BSE were—PM Telelinks (down 19.97%) and Mahalaxmi Rubtech (down 14.31%).
The top performers on the Nifty were Bharti Airtel (up 3.80%); Maruti Suzuki (up1.73%): Dr Reddy’s Laboratories (up 1.72%); Axis Bank (up 1.35%) and Bank of Baroda (up 1.29%). The main laggards on the index were Tata Steel (down 4.26%); TCS (down 3.69%); Tata Motors (down 3.03%); Jindal Steel (down 2.91%) and Reliance Infrastructure (down 2.84%).
Markets in Asia closed mostly higher on hopes of fresh initiatives by the Chinese government to boost growth. The government will step up policy fine-tuning in the second half of this year to support growth, Premier Wen Jiabao said.
The Hang Seng rose 0.15%; the Jakarta Composite climbed 0.69%; the KLSE Composite advanced 0.59%; the Straits Times added 0.11% and the KOSPI Composite gained 0.27%. On the other hand, The Shanghai Composite tanked 1.74% and the Taiwan Weighted lost 0.20%. The Japanese market was closed for a local holiday.
At the time of writing, two of the three key European indices were in the red and the US stock futures were in the negative, indicating a subdued opening for the US markets.
Back home, foreign institutional investors were net buyers of shares totalling Rs281.13 crore on Friday while domestic institutional investors were net sellers of equities amounting to Rs370.41 crore.
Ind-Swift Laboratories’ board has approved the corporate debt restructuring programme to recast its nearly Rs600-crore loans. The company currently has term loans worth about Rs600 crore and is seeking two to three years time for repayment under the CDR. The stock tumbled 6.90% to close at Rs47.20 on the NSE.
Tata Communications has spread the reach of its Video Connect Network to Nigeria through a partnership with Main One Cable Company. The video connect service will allow Nigerian broadcast and production companies to distribute live videos in international markets. Similarly, the African nation will also have access to international broadcasts. The stock dropped 2.70% to close at Rs238.05 on the NSE.
The draft “National Strategy for Financial Education” seeks to create a “financially aware and empowered India” and convert savers into investors over five years
Mumbai: Financial sector regulators, including Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and the Insurance Regulatory And Development Authority (IRDA), on Monday proposed a nationwide survey for assessing financial inclusion and literacy in the country and educate 50 crore adults, besides providing financial education to school children, reports PTI.
The draft “National Strategy for Financial Education” seeks to create a “financially aware and empowered India” and convert savers into investors.
It pitches for a five-year action plan for financial literacy with initial focus on four sectors—banking, securities market, insurance and retirement planning.
The strategy, the draft said, is to undertake a massive financial education campaign to help people manage money more effectively to achieve financial well being by accessing appropriate financial products and services.
“In India, we need to convert savers into investors,” the draft, pared under the aegis of the sub-committee of the Financial Stability and Development Council (FSDC) and simultaneously released for comments by all financial sector regulators, said.
On more participation of domestic retail investors in the securities market, the draft said it will reduce dependence on foreign investors and domestic savers reaping benefits of corporate growth and reducing strain on government for investment in national infrastructure.
Acknowledging that increasing range and complexity of products has made it very difficult for an ordinary person to take an informed decision, the draft said financial literacy will help in protecting society and individuals against exploitative financial schemes and exorbitant interest rate charged by moneylenders.
Financial education will help to avoid over-indebtedness, improve quality of services and make wise financial decisions, the draft said.
On delivery channels for financial education, the draft policy said governments have recognised that it should start at school and that people should be educated about financial matters as early as possible in their lives.
“Our educational system should equip students with these necessary life skills, without which, education will be incomplete,” it said, adding the Central Board of Secondary Education (CBSE) has agreed, in principle, to introduce it in an integral manner in school education.
It said social marketing campaigns such as polio eradication, prevention of child marriage and female foeticide, can serve as models in financial education.
Pitching for using services of self-help groups and NGOs, the draft said mass media like TV, radio, print and internet should be exploited fully for financial education.
It further said there is a need of multi-lingual, toll-free helpline where an investor, customer and client can call and get friendly assistance.
“It (helpline) should be like a friend who is available to guide you in case of difficulties. All regulators can think of such initiative, if they have not already thought of it,” the draft proposed.
The document said the entire policy is sought to be implemented through existing institutional mechanism.
National Institute of Financial Education (NIFE) could be a specialised institute under National Institute of Securities Markets (NISM) reporting to the technical group for implementation of National Strategy for Financial Education.
The draft said as a very first step towards financial literacy, a nationwide sample survey through an outside agency like NCAER, should be carried out for assessing the state of financial inclusion and financial literacy.
The survey should cover the state of financial inclusion, awareness of financial products, financial competency and his/her attitude towards money and risk.
Click here to see the draft (http://www.sebi.gov.in/cms/sebi_data/attachdocs/1342416428845.pdf)
The committee is mandated to review existing policies and suggest necessary changes in the investment framework in the high-priority infrastructure sector
New Delhi: The union government appointed eminent banker Deepak Parekh as the new Chairman of the High Level Committee on Financing Infrastructure, reports PTI.
The committee was first set up in November 2010 under the chairmanship of Rakesh Mohan, former Deputy Governor of Reserve Bank of India.
The committee was mandated to review existing policies and suggest necessary changes in the investment framework in the high-priority infrastructure sector.
Parekh was appointed chairman of the committee earlier this month after approval from Prime Minister Manmohan Singh.
Parekh, who is the Chairman of housing finance major HDFC Ltd, would function in an honorary capacity with the rank of a minister of state.
Parekh is also a part of the sub-committee of the Prime Minister's council on Trade & Industry for promoting Financial Inclusion, besides being a member of the expert group on restructuring of Hindustan Aeronautics Ltd (HAL).
Parekh is known for his frank views on various policy issues and has often been drawn in for consultation during crisis situations including in Satyam and UTI cases.
While setting up the HLC on Financing Infrastructure, the government had said in November 2010 that it would have a tenure of 18 months.
The other members of this committee now include R Gopalan (Secretary, Department of Economic Affairs), DK Mittal (Secretary, Department of Financial Services), insurance regulator IRDA Chairman J Hari Narayan, PFRDA Chairman Yogesh Agarwal, RBI Deputy Governor Subir Gokarn, SBI Chairman Pratip Chaudhuri and LIC Chairman DK Mehrotra.
The other members include PFC Chairman Satnam Singh, ICICI Bank chief Chanda Kochhar, IDFC chief Rajiv Lall, as also Uday Kotak, GM Rao, GV Sanjay Reddy, Sonjoy Chatterjee and Madhav Dhar.
Gajendra Haldea, Advisor to Planning Commission Deputy Chairman, will be the member-convenor of the committee.
The special invitees to the committee include Railway Board Chairman Vinay Mittal, secretaries in power, road transport and highways, urban development, petroleum and natural gas, telecom and water resources ministries, SEBI Chairman UK Sinha, Finance Ministry's Chief Economic Advisor Kaushik Basu and the chief statistician TCA Anant.
Among other things, the committee would make recommendations relating to financing of the projected investment of Rs40,99,240 crore (over $1 trillion) during the 12th Five Year Plan period (2012-17).