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Food Ministry teams rush to Odisha coastal area

Oct 152013

Food Ministry teams rush to Odisha coastal areaNEW DELHI: Food Ministry has rushed Food Corporation of India (FCI) and Central Ware Housing Corporation (CWC) teams to cyclone affected districts of Odisha in view of the reported damage of foodgrain stocks in some of their godowns there.

Union Food and Consumer Affairs Secretary, Sudhir Kumar reviewed the availability of foodgrains in the godowns of coastal areas yesterday evening. He directed senior officials to immediately rush to Odisha to consult the state government about their foodgrainsrequirement and issue foodgrains immediately for distribution under PDS.

In view of the reported damage to FCI and State Warehousing Corporation(SWC) godowns at Jagannathpur and CWC godown at Berhampur, he instructed that before the issue of foodgrain stocks, it should be ensured that quality of foodgrain is usable. He directed FCI to get quality control report prepared about the damaged stocks and based on the needs of state government, arrangements should be made to supply foodgrains to the state from other godowns.

The food secretary also asked FCI and CWC as well as SWC to undertake repairs of the godowns on urgent basis and reconstruct the sheds which have got totally damaged.

Due to cyclone Phailin, FCI Godown at Jagnnathpur, with foodgrain stock of 13,888 tonnes, has suffered partial damage. Roof and wall of one of the sheds have been damaged and some stocks have got wet. SWC godown at the Jagannathpur has also damaged partially. At Behrampur also three sheds of CWC godown have damaged. The godown is having foodgrain stock of 38,181 tonnes

On the directions of the ministry, CMD, SWC and senior officers of FCI have reached in the affected areas.

Nifty listless, tests 5900 levels: Top ten stocks in focus

Sep 252013


Nifty listless, tests 5900 levels: Top ten stocks in focusNEW DELHI: The 50-share Nifty index turned choppy after opening on a flat-to-positive note on Wednesday ahead of the September series expiry. Gains in realty, capital goods and auto sectors were offset by losses in banks, technology and oil & gas stocks.

According to dealers, the trade is likely to remain choppy in absence of cues from global peers and as traders square-off open positions.

At 10:05 a.m.; the 30-share index was at 19,932.18, up 12 points or 0.06 per cent. It touched a high of 19,978.49 and a low of 19,897.15 in early trade.

The Nifty was at 5,891.95, down 1.5 points or 0.01 per cent. The index touched intraday high of 5,910.40 and a low of 5,885.45.

“The Nifty is expected get support around 5855 and resistance will be at 5935,” said Somil Mehta, Senior Tech Analyst (Equity) at Sharekhan.

“The Nifty has completed a five-wave pattern from 5118 to 6142 and is now expected to retrace the entire rally till the 40-weekly moving average (WMA), ie 5755,” he added.

Mehta is of the view that the short term bias for the Nifty remains negative for a target of 5755 with reversal around 6150.

The medium-term outlook remains positive because the Nifty has retraced 61.8% of the previous rally from 4770 to 6229 and is trading above the 20-WMA and the 40-WMA, ie 5822 and 5755 respectively, he added.

Here is a list of ten stocks which are in focus in trade today:-

Tata Motors Ltd: Tata Motors-owned Jaguar Land Rover (JLR) today announced a multi-million-pound investment in research and development in the UK that will be focused on a state-of-the-art centre at the University of Warwick campus.

At 10:05 a.m.; the stock was trading 2.4 per cent higher at Rs 344.75.

Tata Consultancy Services Ltd: TCS said it would set up an all-women business processes outsourcing centre in Saudi Arabia, a conservative Islamic nation where women must be accompanied by a male relative when in public and are not allowed to drive.

At 10:05 a.m.; the stock was trading 0.6 per cent lower at Rs 1,927.75.

Hexaware Technologies Ltd: Approving one of the biggest deals in the Indian IT space, fair trade watchdog CCI has cleared Baring Private Equity’s proposed acquisition of controlling stake in outsourcing firm Hexaware Technologies, saying the transaction will not adversely impact competition.

At 10:05 a.m.; the stock was trading 1.4 per cent higher at Rs 128.65.

Kingfisher Airlines Ltd: Criris-hit KFA said it is in talks with a foreign investor for potential stake sale, its Chairman Vijay Mallya said on Tuesday. The stock gained nearly 10 per cent on Tuesday and is likely to see further traction on Wednesday.

At 10:05 a.m.; the stock was trading 9.9 per cent higher at Rs 5.65.

Ashoka Buildcon Ltd: The company said it has received orders valued at Rs 494.50 crore from Maharashtra State Electricity Company Ltd (MSEDCL).

At 10:05 a.m.; the stock was trading 3.6 per cent higher at Rs 46.65.

Fertiliser stocks: The total fertiliser subsidy budget for the fiscal 2013-14 is anticpated to be in the range of Rs 65,000-70,000 crore excluding carryover subsidy of last years, a ratings agency said in a report.

At 10:05 a.m.; Coromadel International Ltd was trading 0.1 per cent higher at Rs 221.05.

Financial Technologies Ltd: Just a day before Financial Technologies (FT), the MCX Group’s flagship company, planned to meet its shareholders at the annual general meeting in Mumbai, its auditor Deloitte Haskins and Sells has withdrawn its audit report saying that the company’s standalone and consolidated results are not to be relied upon.

At 10:05 a.m.; the stock was trading 5.6 per cent lower at Rs 157.80.

Unitech Ltd: The world’s largest property investor, Blackstone, has agreed to buy out a 3.6-million-sqft IT SEZ in Gurgaon, partly owned by Unitech, for 2,600 crore.
At 10:05 a.m.; the stock was trading 0.9 per cent higher at Rs 16.85.

SAIL: State-owned steelmaker SAIL has tied up with Siemens to upgrade the technical competence of its work force. Siemens will offer training in automation, DC/AC servo drives, switchgears and other related technologies such as process instrumentation and mechatronics at the steel major’s units in Bhilai, Bokaro, Durgapur, Rourkela, Burnpur, Salem, Bhadravati and Kolkata.

At 10:05 a.m.; the stock was trading 0.4 per cent lower at Rs 52.20.

Hindustan Motors Ltd: Crisis-ridden Hindustan Motors, a C K Birla group company, is gearing up for the launch of a small car in the next fiscal, its MD and CEO Uttam Bose said on Tuesday.

At 10:05 a.m.; the stock was trading 1.4 per cent higher at Rs 8.67.


Bank Nifty tumbles more than 700 points; realty stocks nosedive

Sep 202013

Bank Nifty tumbles more than 700 points; realty stocks nosediveNEW DELHI: Banking stocks extended their intraday losses, with the S&P BSE Banking index plunging over 6 per cent, after the Reserve Bank of India (RBI) decided to hike policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 7.25 per cent to 7.5 per cent with immediate effect.

Bank Nifty plunges 7% from Friday’s peak. The index has wiped out entire gains it made on Thursday.

Banking stocks slipped, led by losses in Yes Bank, IndusInd Bank, ICICI Bank and Bank of Baroda.

The Reserve Bank of India raised repo rate or the rate at which it lends to banks by 25 basis points to anchor inflation and inflationary expectations. The repo rate is increased to 7.5 per cent from 7.25 per cent with immediate effect.

RBI reduced the marginal standing facility rate by 75 basis points to 9.5% from 10.25% with immediate effect. The measure was taken to tighten liquidity and arrest volatility in the foreign exchange market.

At 11:20 a.m.; the S&P BSE Banking index was trading 6.05 per cent lower at 11,917, while Bank Nifty was down 700 points, or 6.34 per cent at 10,439.

Yes Bank which skyrocketed over 22 per cent to Rs 386.80 and was the top gainer in the S&P BSE Banking on Thursday, index slipped 12 per cent to Rs 338.15. Other stocks in the BSE Banking index such as Bank of India, Union Bank, BoB, Federal Bank and ICICI Bank were trading 2-4 per cent lower.

Along with banking stocks, other rate sensitive stocks such as autos, realty and capital goods also slipped post the RBI announcement.

The BSE realty index was trading 5.8 per cent lower, led by losses in HDIL which was down 2.1 per cent, DLF slipped 2.2 per cent and Unitec was trading 1.9 per cent lower.

The BSE auto index plunged 2.5 per cent, led by losses in Maruti Suzuki which was trading 1.7 per cent, Hero MotoCorp was down 1.7 per cent and Bajaj Auto slipped 0.6 per cent.

The BSE Capital Goods Index was trading 3.3 per cent lower, led by losses in Punj Lloyd which was down 5.8 per cent, L&T which slipped 4.7 per cent, Welspun Corp dropped 4.2 per cent and Jindal Saw was trading 3.1 per cent lower.

Hong Kong stocks up 0.15%; China shares rise

Jul 192013

Hong Kong stocks up 0.15%; China shares riseHONG KONG: Hong Kong shares rose 0.15 percent in the morning session Friday following another strong Wall Street cue after the Dow ended at a record high.

The benchmark Hang Seng Index added 32.17 points to 21,377.39 by the break on turnover of HK$24.90 billion (US$3.21 billion).

Chinese shares were up 0.17 per cent on bargain hunting following recent falls, dealers said.

The benchmark Shanghai Composite Index edged up 3.43 points to 2,026.83.

Pre-market: Nifty seen opening soft; may test 5750 levels

Jul 042013

Pre-market: Nifty seen opening soft; may test 5750 levelsNEW DELHI: The 50-share Nifty index is expected to open soft on Thursday in line with other Asian markets. Tracking the muted momentum, the index is likely to test its crucial support level of 5750 in trade today.

At 07:30 a.m., Nifty India stock futures in Singapore were trading 10 points higher at 5782, indicating a lower opening on the domestic market.

The 50-share Nifty index closed below its crucial support level of 5800 on Wednesday, in line with other global peers. The rise in global crude oil prices and weak rupee weighed on investor sentiments as it impact India’s current account deficit (CAD).

The Nifty is now trading at its support levels i.e. 5750 odd levels which is supported by the gap which was formed on 28th June.

“Any move below this level may attract more panic selling which may drag a Nifty towards 5630/5600 levels also,” said Swati A. Hotkar, Technical Analyst at LKP Advisory.

“Upside resistance is place at 5920 levels and we advise traders to maintain a strict stop loss of 5750 levels for their long position,” she added.

According to analysts, the trend remains on the downside and the Nifty can plunge another 100 points from current levels. The index has a strong support at 5550-5600.

“Well, we may not break 5550-5600 on the downside but 100 points downside from current levels looks very likely,” said Sandeep Wagle, Founder & MD, APTART Technical Advisory Services in an interview with ET Now.

“There is a gap in the Nifty around 5680 levels, so there is a good chance that we may find some support there, but from a current level of 5770 and any upside in the markets should be sold into,” he added.

Overnight, US markets ended with modest gains as traders squared positions before the holiday and Friday’s job market data. US markets will remain close on Thursday on account of Independence Day holiday.

The Dow Jones industrial average rose 56.14 points or 0.38 per cent, to end at 14,988.55. The S&P 500 gained 1.33 points or 0.08 per cent, to finish at 1,615.41. The Nasdaq Composite added 10.27 points or 0.30 per cent, to close at 3,443.67.

Asian stocks were trading mixed ahead of the key events including the European Central Bank meeting and the U.S. non-farm payrolls report loomed.

“Unrest in Egypt came to a head on Wednesday, when the country’s armed forces removed President Mohamed Mursi to force a resolution to the political crisis,” Reuters reported.

“Also unsettling investors, the Portuguese government is struggling to survive following the resignations of its foreign minister and finance minister this week,” added the report.

U.S. crude edged up 0.1 percent to $101.33 a barrel.

Japan’s Nikkei 225 index was trading 0.04 per cent lower at 14,049.17 and Hong Kong’s Hang Seng index was trading 1.2 per cent higher at 20,394.12.

South Korea’s Kospi index was trading 0.3 per cent lower at 1830.45. China’s Shanghai index was trading 0.7 per cent lower at 1,979.63.

Stock Exchanges hold back Rs 40 crore payout to high net-worth individuals

Jul 032013

Stock Exchanges hold back Rs 40 crore payout to high net-worth individualsMUMBAI: Stock exchanges are holding back close to Rs 40 crore in payouts to several high net-worth individuals who are clients of a handful of brokers that are under investigation. Most of these investors have dealt with the wealth management division of the Mumbai-based brokerage Prime Securities, two sources with direct knowledge of the developments said.

Capital market regulator Sebi had directed the exchanges to hold back payouts of investors who had dealings with Prime which owes a large amount to the National Stock Exchange (NSE).

A few months ago, NSE had disabled trading terminals of Prime, but this was never announced by the exchange. NSE is yet to declare Prime as defaulter with the bourse not having completing its probe, said a source.

Market players said that Prime and a few members first faced trouble in December when eligible securities to be placed as margin with exchanges were changed at a short notice. Prices of stocks which could not be placed as margin dropped and some members were unable to further fund their trading positions. Such notices are issued from time to time.

Exchanges have identified funds flowing in through client’s code to differentiate between Prime’s proprietary investments and that of its clients. NSE is holding back around 35-37 crore payment to Prime’s clients.

Most market players think that punishing investors for the fault of a broker is unfair on the part of the exchange, but exchanges are defending the move as investigations are underway. The authorities are probing whether funds were linked to market manipulation and the possibility of related party transactions between Prime and a clutch of other brokers active in small- and mid-cap stocks.

Sebi has received complaints from other trading members alleging manipulation in certain counters.

Several small- and mid-cap stocks had crashed in January and February as brokers holding the scrips in lieu of margin finance deals started dumping them. Prime and a few other members placed these small- and mid-cap shares as collateral to trade in derivatives. But some were pushed to the brink of default as they failed to top up margins when the value of collaterals shrank.

More recently, it has come to light that some of the derivative deals in illiquid options were pre-negotiated funding arrangements that were routed through exchanges.

Experts slam new additions to S&P BSE 500 on quality issues

Jun 152013

MUMBAI: The inclusion of a few stocks such as Aanjaneya Lifecare, Nouveau Global Ventures, Orient Paper, Indiabulls Infrastructure and Shree Nath Commercial to the S&P BSE 500 index has got analysts worried as most of these stocks are either of fundamentally weak companies or have been extremely volatile in recent months.

BSE announced the revision of composition of S&P BSE indices, which will be effective from June 24 this year. According to the review, 25 companies have been replaced by a new set of 25 companies. Of the 25 companies, analysts are sceptical of at least 10, saying they shouldn’t be there in the index.

For instance, Shree Nath Commercial, which was included in the index, has a market capitalisation of just Rs 110 crore whereas its net sales and net loss for year ended FY2013 was Rs 14 crore and Rs 44 lakh, respectively. Some other stocks include Rasoya Proteibo, Luminaire Tech Anukaran, NCL Research and Rainbow Papers.

“Technically, BSE may be correct in selecting all these companies for the S&P BSE 500 index, but the bourse should have gone beyond the technical parameters and selected quality stocks,” said Kiran Chheda, an independent analyst. An email query sent to BSE remained unanswered.

But after realising its error, BSE replaced one such company Nouveau Global with BS on Tuesday in a corrigendum published at its website. Earlier this year, BSE, in an effort to raise the growing global acceptance of the Sensex and other BSE indices, tied up with S&P Dow Jones Indices and rebranded all its indices with S&P.

Stocks for S&P 500 were selected on eight parameters such as market capitalisation, liquidity, domicile, public float, sector classification, financial viability, length of time publicly traded and listing exchange. The only rationale for inclusion in S&P BSE 500 is their market cap and free-float holding, according to the website.