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A surge in Asian markets triggered a 100-point rally in Indian bourses
Indian markets gained momentum during the day as Asian markets ended positively. At the end of the day, the Sensex shot up 107 points from the previous day’s close to 16,042 while the Nifty closed at 4,793, up 32 points. However, fears of a possibility that the government may start to unwind its fiscal stimulus in the forthcoming budget continued to weigh on market sentiments.
The rally which began in the US dollar index on 14 January 2010 has now reversed. Hence we expect all emerging markets to stay positive and commodity prices to go up.
Yesterday we had said that the market would move sideways, but it ended up higher today. But we also said that for the market to trigger a short rally from here on it should cross 16,000. We expect the market to remain up tomorrow.
At 12:00 hrs IST, the Sensex was trading at 15,974, 39 points up from the previous day’s close, while at 14:00 hrs IST, the Sensex was trading 147 points up from the previous day’s close at 16,083.
At the end of the day, telecom stocks rose on reports that firms in this space will together save at least $1.50 billion this fiscal in capital expenditure thanks to their practice of sharing towers and accompanying infrastructure, giving them some respite from a brutal price war. Bharti Airtel and Idea Cellular rose 2% while Reliance Communications remained flat.
Strides Arcolab has received ANDA approval for its Labetatol Hydrochoride (HCI) injection USP 100 mg per 20 ml and 200 mg per 40 ml, multi-dose vials. The stock zoomed 13%.
Subex shot up 10% on reports that the company plans to raise up to Rs48 crore through a preferential placement with an investment company.
Cement stocks gained on reports of a price hike effective from 1 February 2010. As per reports, almost all manufacturers have pushed rates up by Rs3-Rs5 for a 50-kg bag, bringing up the average national price to about Rs235. ACC and UltraTech Cement were up 3% each.
Electrical & Gulf Projects Operating Company, a part of L&T’s Construction Division, has bagged orders worth Rs582 crore from various customers for four electrical projects in India and the UAE. The stock was up 1%.
Jet Airways was up 2% after the company reported impressive growth of 30% in January 2010 in international passenger traffic compared to the same period last year. Domestic passenger traffic in January 2010 registered 26% increase from last year.
Mahindra & Mahindra (M&M) and Britain’s BAE Systems reportedly plan to inject a total of $21.25 million over a three-year period into their joint venture company Defence Land Systems India. M&M was down 1%.
During the day, Asia’s key benchmark indices in China, South Korea, Hong Kong, Singapore and Taiwan were up by between 0.47%-2.01%. However, Japan’s index fell by 0.19%.
On Monday, 8 February 2010, the Dow Jones Industrial Average declined 104 points while the S&P 500 and the Nasdaq Composite were down 9 points and 15 points respectively.
However, in premarket trading, the Dow was trading 42 points higher.
A number of investors who invested in the Osian Art Fund through ABN AMRO are still awaiting first payments. As per sources, there are more than 100 such investors
Seven months after a poor exit in July 2009, not all investors in the Osian Art Fund have been paid their first instalment of redemption. Though the deadline for complete redemption has expired back in December 2009, a few investors are still clueless, and have not received any payment.
“I am still waiting for the first instalment of the amount. I have been following up with Osian officials on a daily basis, but have failed to get my payment,” said an investor on the condition of anonymity. The investor had invested around Rs 90 lakh in the art fund through four portfolios. The investment was made through ABN AMRO bank. According to the investor, as per the last communication received from an Osian official, the first payment was to be made by the end of January 2010. However, the investor has failed to receive any payment.
“I have not received the first payment despite following up with Osian on a daily basis. Each time I have been given a new date,” said Santosh Godbole, an investor who invested through ABN AMRO. As per the last communication from Osian, Mr Godbole was promised the first payment by 29 January 2010.
As per sources, only a handful of investors who invested through ABN AMRO have been given the first payment, while more than 100 investors await first payments.
As a reply to queries from Moneylife on one of our earlier stories on the bank, the official comment had stated, “In keeping with our philosophy of providing a range of investment options to our clients suitable to their risk appetite and personal goals, we present various funds across different asset classes. The Bank however weighs investment options extremely cautiously and puts in safeguards and processes in place to ensure that clients take an informed decision when choosing to invest in any fund. At every step, our Endeavour is to keep our clients briefed and updated on market related information and fund performance. In view of client confidentiality, we would not like to comment on Client and Fund portfolios. In case you have any specific queries regarding the Osian Art Fund, please contact the Osian Fund Management directly.”
Osian has been able to shell out a part payment of around 75% to 85% of the total amount to some of its investors. The company claimed that the payment was 90% of the invested capital. Though it started this process way back in December 2009, a number of investors still await the first payment. Those who have received the first payment are also apprehensive on whether they will receive the remaining amount. In one of the last notes sent by Osian to all its investors in December 2009, it claimed that the first instalments would be completed in the month of December itself.
According to sources, Osian officials claim that the payments have not been made as the company is unable to get payments for its artefacts and paintings, from various institutions and people with whom a contract was signed for the same. An email was sent to Neville Tuli, chief advisor, Osian Art Fund, to which no immediate reply has been received.
The Osian Art Fund was a 36-month close-ended scheme launched in July 2006. It made a quiet exit and at that time company officials claimed the returns to be around 5% per annum. As ambiguity on the final net asset value continues, the investor is clueless about what the exact total redemption amount would be. As of July 2006, the fund’s total corpus was Rs102.40 crore and it had 656 unit-holders across 39 cities.
The Indian government has refused to give a go-ahead to commercial cultivation of BT Brinjal, a genetically-modified version of the vegetable that is said to be more resistant to pests
Facing intense opposition from within and outside, the government today refused to give a go-ahead to commercial cultivation of BT Brinjal, a genetically-modified version of the vegetable that is said to be more resistant to pests, reports PTI.
Announcing the cautious approach of the government, environment and forests minister Jairam Ramesh said that there was “no clear consensus” among the scientists and stakeholders on giving permission to BT Brinjal and more studies needed to be conducted.
"There is no overriding urgency to introduce it. When the public sentiments have been negative, it is my duty to adopt a cautious, precautionary and principle-based approach," he told a hurriedly-called press conference which was originally scheduled for Wednesday.
"I will not impose a decision till such time independent scientific studies establish safety of the product from long-term view of human health," Mr Ramesh said.
He said it was a difficult decision to take but he had to balance many issues of science, society, producers and consumers.
However, he made it clear that today's decision applied only to BT Brinjal and did not cover the future of genetically-modified crops, be it ladyfinger, cabbage or rice.
Mr Ramesh's decision came after a series of public consultations in seven cities across the country, that often turned acrimonious. A number of state governments, including Congress-ruled Andhra Pradesh, have publicly opposed the introduction of BT Brinjal.