The domestic market opened soft this morning tracking subdued global cues. The absence of any major triggers and a sell-off by institutional investors resulted in the key indices falling for the second straight day
The market opened lower tracking its weak Asian peers that started in the red on lower commodity stocks. Banking, realty and metal stocks dragged the market lower in early trade. The indices traded in a narrow range till noon when another bout of selling by institutional investors sent the market further down to touch the day’s low in the post-noon session.
However, the key indices pared some of the losses, but ended in the red for the second day in a row.
We expected the Sensex to take support at around 20,400 but the market continued to remain weak. The market closed at 20,301.10, 0.96% down (197.62 points). This is the maximum decline in the Sensex since the rally began on 10 December 2010. The market opened up, with a small gap of 11.23 points, at 20,509.95 today. This was the high for the day. After that, the Sensex continuously fell and reached a new five-day low at 20,243.95.
The market has broken the support of 20,400. The next support lies at around 20,200. Of course, a two-day decline in an ongoing rally is normal. However, if the market remains weak and closes below 20,000 we will have to be prepared for a substantial decline.
The Nifty closed at 6,079.80, down 66.55 points (1.08%). The index touched a high of 6,141.35 and a low of 6,062.35.
The market breadth continued to be negative for the second day. The Sensex had 24 losers against six advancing stocks, while the Nifty closed with 38 losers and 12 gainers. Among the broader markets, the BSE Mid-cap index declined 1.27% and the BSE Small-cap index was down 1.02%.
The top Sensex gainers were Hindustan Unilever (up 1.43%), ITC (up 1.38%), Hindalco Industries (up 1.36%), TCS (up 1.25%) and Tata Power (up 1.17%). The losers list had names like Bajaj Auto (down 3.69%), Hero Honda (down 3.60%), DLF (down 3.28%), ICICI Bank (down 3.08%) and Reliance Communications (down 2.81%).
The sectoral space was dominated by losers. BSE Bankex (down 2.19%), BSE Realty (down 2.03%) and BSE Auto (down 1.95%) were the top losers. BSE Fast Moving Consumer Goods (up 0.72%) and BSE IT (up 0.34%) were the only gainers in the sectoral space.
The Securities and Exchange Board of India (SEBI) today said that merchant bankers cannot refer clients for alternative investments—such as corporate deposits and real estate—beyond the securities market. The regulator announced this while rejecting a plea by Barclays Securities. Merchant bankers act as intermediaries between entities seeking to raise capital through the sale of securities and the purchasers of these securities.
Markets in Asia ended mixed as material stocks edged lower on a fall in prices of gold and crude. On Tuesday, February crude oil futures shed $2.17 to $89.38 per barrel, the lowest settlement since 20th December, while spot gold fell more than $30 to below $1,400 a troy ounce. Profit booking after the recent rally across the region led some of the exchanges lower.
The Hang Seng gained 0.38%, the Jakarta Composite rose 0.63%, the KLSE Composite surged 0.92% and the Straits Times added 0.12%. On the other hand, the Shanghai Composite declined 0.49%, the Nikkei 225 fell 0.17%, the Seoul Composite shed 0.12% and the Taiwan Weighted tanked 1.68%.
Back home, foreign institutional investors were net buyers of stocks worth Rs717.76 crore on Tuesday. Domestic institutional investors were net sellers of equities worth Rs491.57 crore.
Fast moving consumer goods major GlaxoSmithKline Consumer Healthcare (GSKCH) (up 0.98%) has announced its entry into the Indian oral care market through its global toothpaste brand ‘Sensodyne’ with plans to make it a Rs150-crore brand in the next five years. Through Sensodyne, the biggest brand of GSKCH globally worth around $750 million, the company expects to capture up to 5% of the estimated Rs 1,850-crore Indian toothpaste market within the next three to five years.
Pharma company Dr Reddy’s Laboratories (up 0.98%) will contest the patent infringement case filed against it by global pharmaceutical giant Pfizer over its cholesterol lowering drug atorvastatin, said a company spokesperson today.
On 27th December last year, Pfizer had moved to the US District Court for the District of Delaware against Dr Reddy's Laboratories and Dr Reddy's Laboratories Inc for infringement of Pfizer’s crystalline atorvastatin patent.
Jindal Saw (up 7.24%), an OP Jindal group company, has inked a lease pact with Rajasthan government to mine iron ore for 30 years from a deposit containing an estimated 180 million tonnes of resources. The total area covered under the lease is 1556.78 hectares and based on the initial estimates, the mines have about 180 million tonnes of reserves of various categories of iron ore.
Our babus continue to ignore his inventions, while the world honours the technology man who patented an anti-collision device, made the Skybus and more recently the Gravity Power Towers
Rajaram Bojji, former managing director of Konkan Railway, never got a chance to implement his revolutionary Skybus project which would have provided inexpensive, air-conditioned mass transport without land acquisition! The idea, backed by 17 patents, was abandoned by Indian authorities despite a successful demonstration in Goa. But Mr Bojji, who is better known as B Rajaram, moved on to new research and has kicked off the new year with a bang.
Automated People Movers and Transit Systems (APM-ATS) has accepted Mr Bojji's work on Gravity Power Towers (GPT) as a peer-reviewed paper to be presented at its 13th International Conference on 24 May 2011. The biannual international meeting is being held in Paris for all those involved in the development of fully-automated people movers and urban transit systems around the world.
This is an honour for the man who invented the anti-collision device (ACD) for the Indian Railways and has already got 17 patents for his inventions. He has assigned the intellectual property (IP) rights of this technology to the president of India, which has the potential to generate additional revenues of between Rs300 crore and Rs400 crore per annum for the Konkan Railway.
In a message to Moneylife, Mr Bojji said, "With the GPT, the world will be benefited by a more economical and nature-friendly transportation system that runs substantially on eternal gravity. With GPT, the carbon emissions can be substantially reduced in the future. This totally automated system neither uses electrical traction motors on the rolling stock nor fixed signal train control systems. All it uses is automated energy control systems from gravity power towers, which can redefine our safety standards and lifestyle as well. It can be even adopted by the existing legacy systems. A dream of mine has taken the first step. Hope humanity benefits."
While, the Indian Railways is still 'thinking' about implementing indigenous technology, one of its technology drivers has moved on to bigger and better things.
Mr Bojji's GPT principle re-directs vertical-acting gravity force in a horizontal direction to create a tractive force on a mass on wheels-either rail or road-to accelerate, then sustain speed, and when decelerating to recover kinetic energy. It is almost like the action of a pendulum.
The recovery on the GPT system can vary from 95% to 70%, depending on the distance of uniform speed-the longer the distance, the lesser the recovery. Hysteresis losses owing to friction cause increased irrecoverable energy loss. GPT has been granted a patent in the US.
Mr Bojji has also presented the outline for a $450 billion scheme to create a cargo transportation network of about 100,000 km to be fully powered by the GPT in the US. The network, fully powered by gravitational force, would save around 97% of energy being utilised currently, and generate 30% surplus after meeting all expenses, while generating a million blog GPT.
It is estimated that gravity power systems could contribute 30-40% of the Earth's total energy needs, taking care of transportation of people and cargo, while attaining speeds of 360 kmph on rail-based systems.
Unfortunately, as the world rewards and awards the Indian innovator, the Indian government has shunned his solutions. The best example is the anti-collision device that he devised and which was given a patent, but the Railways have chosen to ignore it while trying to adopt the European Train Protection Warning System (TPWS) on busy rail routes. (Read, 'Is the anti-collision device system being derailed?' ; 'Why we are denying Raksha Kavach to rail commuters?' )
Mr Bojji's other creation, the 'Skybus', was also left by the wayside by Indian authorities planning mass transit systems. Further, while the anti-collision device was singled out by the World Intellectual Property Office for special coverage, the Skybus Metro Rail System was described in special programmes on National Geographic and Discovery channels.
Mr Bojji was involved with the Konkan Railway project as chief engineer from the beginning of its construction in 1990, then as director for projects and finally as managing director between 1998 and 2005. He was instrumental in delivering more than 100 tunnels (including the Mumbai-Pune Expressway tunnels), about 2,000 bridges and 750 km of live running track through treacherous terrain in Maharashtra's Konkan region.
New Delhi: India's central bank, Reserve Bank of India (RBI) is investigating the Rs300 crore fraud in Citibank's Gurgaon branch, which saw diversion of depositors funds in stock markets, reports PTI.
"RBI is investing the matter (Citibank fraud)," a key Reserve Bank source said.
The fraud at the Citibank's Gurgaon branch in the state of Haryana, involving diversion of depositors' money into the stock market, was uncovered last week.
Several high networth individuals (HNIs), including promoters of the Hero Group, the biggest motorcycle maker of India, were lured by Citibank's relationship manager Shivraj Puri, the main accused in the scam, into investing funds on promise of high returns.
Victims of the fraud have complained to the police that their securities were encashed without their knowledge.
Sanjeev Aggarwal, managing director of Helion Advisors, had on Tuesday filed a first information report (FIR) with the local police, alleging he was cheated of his life's savings of Rs32.43 crore in the fraud.
Besides senior officials of the bank, Mr Aggarwal named Indian-born global CEO of the Citibank Vikram Pandit and chairman William R Rhodes in the FIR that alleged criminal breach of trust, falsification of accounts, cheating and criminal conspiracy by the bank officials.
Citibank, however, dismissed allegations of involvement of its senior executives in the fraud.
The local police on Wednesday ruled out the possibility of questioning Citibank's global CEO Vikram Pandit and other top honchos in connection with the scam.