Stocks
Nifty, Sensex may rally - Weekly closing report
We had mentioned in last week’s closing report that Nifty, Sensex are still under pressure. The markets ended on with losses on  the first two days of the week, ended with gains on Wednesday and Thursday, and  closed the week with losses on Friday. The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
On Monday The BSE Sensex ended 47 points lower at 29,413.66 and the broader index Nifty closed below 9150 at 9139. Asian Paints, NTPC, Lupin and ONGC were down 1-3% whereas Reliance Industries was the leading contributor to Sensex' gains, up 2% followed by GAIL (up 3.6%).
 
The shares of Indiabulls Real EstateBSE rose about 49% to hit the highest level since November 2010 after the company said it would either consider placing Indiabulls Commercial Assets as a separate holding company for commercial and leasing business segment, or reorganise existing businesses via demerger. The stock eventually closed the day 40% higher at Rs148. 
 
Government data on Monday showed wholesale prices rose a lower-than-expected 5.70% year-on-year in March, compared with a 0.45 fall a year ago, dragged down mainly by easing fuel prices. Meanwhile, India's merchandise exports increased at 65-month high pace of 27.6% to US$ 29.23 billion in March 2017 over a year ago. Merchandise imports jumped 45.3% to US$ 39.67 billion. The trade deficit more than doubled to US$ 10.44 billion in March 2017 from US$ 4.40 billion in March 2016. 
 
On Tuesday, Indian Equity markets settled with modest losses in a volatile session of trade as a strong intraday rally was derailed by sell-off in late trade. Weakness in European stocks caused reversal in intraday gains. Sensex fell by 94.56 points or 0.32% to settle at 29,319.10. The Nifty 50 index dropped 34.15 points or 0.37% to settle at 9,105.15. Both the benchmarks hit the lowest closing level in three weeks. 
 
Tata Steel lost 2.55% after the company said its board meeting will be held on 20 April 2017, to consider a proposal for fund raising. The announcement was made after market hours yesterday, 17 April 2017. Axis Bank lost 0.89%. The bank announced that it has retained the marginal cost of funds based lending rates (MCLR) at the same levels across tenors. The bank's MCLR for overnight loans will be 7.9%, for one month will be 7.9% and for three months will be 8.05%.The MCLR on 6-month loans will be 8.15% and for one-year loans the rate would be 8.25%, the bank said. MCLR for two-year loans would be at 8.3% and loans with three-year maturity would carry an MCLR of 8.35%, the bank said. The new loans will be priced at the published internal benchmark MCLRs as mentioned above with effect from 18 April 2017. The announcement was made after market hours on 17 April 2017.
 
Meanwhile, India Meteorological Department (IMD) in its first stage forecast of southwest monsoon for 2017, today, 18 April 2017, said that quantitatively, the monsoon seasonal rainfall is likely to be 96% of the long period average (LPA) with an error of ± 5%. Forecast assessment suggests 38% of probability for near normal monsoon rainfall, it added. IMD will issue the update forecasts in early June, 2017, as a part of the second stage long range forecast of monsoon rainfall.
 
The key benchmark indices settled almost unchanged amid mixed trend on the bourses after a listless and rangebound session on Wednesday. The barometer index, the S&P BSE Sensex closed with small gains while the Nifty settled with tiny losses. 
 
IndusInd Bank shed 0.63% after announcing Q4 results. The bank's net profit rose 21.16% to Rs 751.61 crore on 22.36% increase in total income to Rs 5041.31 crore in Q4 March 2017 over Q4 March 2016. The net profit rose 25.43% to Rs 2867.89 crore on 22.47% increase in total income to Rs 18577.16 crore in the year ended March 2017 over the year ended March 2016.
 
Technology stocks were under pressure after the US President Donald Trump signed an executive order for a review of the H-1B visa programme, saying they should never be used to replace American workers. Muted earnings by TCS also dented sentiment. TCS and Infosys declined over 0.3% each while Wipro gained 0.8%. Coal India gained more than a percent as Motilal Oswal has upgraded the stock to buy with increased target price at Rs 335 (implying 20% upside), citing strong earnings growth and attractive dividend yield.
 
TCS was down 0.3% after consolidated net profit fell 2.5% to Rs 6608 crore on 0.3% decline in revenue to Rs 29642 crore in Q4 March 2017 over Q3 December 2016. The result was announced after market hours yesterday, 18 April 2017. 
 
On Thursday equity markets settled with modest gains after gyrating in a small range in the positive terrain throughout the day as largely positive global cues supported gains. The S&P BSE Sensex, rose 85.82 points or 0.29% to settle at 29,422.39. The Nifty 50 index rose 32.90 points or 0.36% to settle at 9,136.40. The Sensex gained for the second day in a row while Nifty snapped a five-day losing streak today. The Sensex hit its highest closing level in one-week.
 
Realty, IT, bank, capital goods and FMCG stocks hogged limelight in today's trade. HDFC was the leading contributor to Sensex' gains, up nearly 2% followed by Infosys, TCS, Asian Paints, Maruti and Lupin. Adani Ports retained its uptrend, rising 1.8%.
 
Yes Bank dropped 3.76% as the bank's bad loans rose in Q4. Yes Bank's net profit rose 30.2% to Rs 914.10 crore on 29.44% rise in total income to Rs 5606.38 crore in Q4 March 2017 over Q4 March 2016. The bank announced Q4 results after market hours yesterday, 19 April 2017. The bank's gross non-performing assets (NPAs) rose to Rs 2018.56 crore as on 31 March 2017 as against Rs 1005.85 crore as on 30 December 2016 and Rs 748.98 crore as on 31 March 2016.
 
On Friday, the bourses made a positive start to the session on higher Asian stocks. After trading with small gains in early trade, key indices steadily added on to the gains and hit fresh high in early afternoon trade. Indices hovered within a narrow range in positive terrain later during the session amid firm European cues.
 
Trading for the week ended on a dull note on Friday as the key benchmark indices failed to hold onto intraday gains to settle with small declines. The barometer index, the S&P BSE Sensex, fell 57.09 points or 0.19% to settle at 29,365.30. The Nifty 50 index fell 17 points or 0.19% to settle at 9,119.40. Weakness in European stocks dampened sentiment.
 
Key benchmark indices opened higher on positive Asian stocks. After hovering in a narrow range in positive terrain till early afternoon trade, indices slipped into the red to hit intrday low in afternoon trade. After sliding to intraday low in afternoon trade, the key benchmark indices trimmed losses in mid-afternoon trade. Stocks traded in negative zone in late trade. The Sensex fell 57.09 points or 0.19% to settle at 29,365.30. The Sensex gained 161.95 points or 0.55% at the day's high of 29,584.34. The index fell 162.97 points or 0.55% at the day's low of 29,259.42.The Nifty 50 index fell 17 points or 0.19% to settle at 9,119.40. The Nifty gained 47.25 points or 0.51% at the day's high of 9,183.65. The index fell 47.65 points or 0.52% at the day's low of 9,088.75.
 
HDFC Bank advanced 2.05% after net profit rose 18.25% to Rs3990.09 crore on 14.3% growth in total income to Rs21560.66 crore in Q4 March 2017 over Q4 March 2016. The bank's gross non-performing assets (NPAs) rose to Rs5885.66 crore as on 31 March 2017 as against Rs5232.27 crore as on 31 December 2016 and Rs4392.83 crore as on 31 March 2016.
 
Tata Steel fell 0.67% after the company's board at a meeting held yesterday, 20 April 2017, reviewed the performance, capital structure and financing plan of the company. Based on the review and pursuant to the existing shareholders approval, the board approved issue of debt securities of up to Rs9000 crore in the form either of non-convertible debentures on private placement basis or foreign currency or rupee denominated bonds or a combination thereof in one or more tranches. The funds will primarily be deployed towards re-financing the existing debt, capex/working capital requirements and general corporate purposes. The board of directors also authorized the finance committee of the board to determine and approve the timing and terms of such issue of securities. The announcement was made after market hours yesterday, 20 April 2017.
 
The market ended on a marginally bearish note on Friday. On BSE, there were 1449 declines, 1426 advances and 139 unchanged. On NSE, there were 857 declines, 827 advances and 80 unchanged. 
 

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SC questions govt over making Aadhaar as mandatory
Coming down heavily on the Narendra Modi government, the Supreme Court on Friday asked how they could make Aadhaar mandatory when the apex court has made it optional. The Court also asked the Centre to justify the need for making Aadhaar mandatory for filing income tax returns (ITRs).
 
The Court said it will examine next week the constitutional validity of central government's decision to link the Aadhaar with the permanent account number (PAN) card. 
 
Mukul Rohatgi, the Attorney General was quoted in the reports as saying that "We found a number of PAN cards being used to divert funds to shell companies. To prevent it, the only option is to make Aadhaar mandatory."
 
The Bench of Justice AK Sikri, and Justice Ashok Bhushan, asked the Attorney General that “Is this the remedy? Forcibly asking people to get Aadhaar cards?”
 
The court was hearing a petition filed by former Kerala Minister Binoy Viswam, represented by senior advocate Arvind Datar and advocate Sriram Prakkat, challenging the constitutionality of Section 139AA inserted in the Income Tax Act by the Finance Act, 2017.
 
The Attorney General argued that it was a mandatory requirement under Section 139A of the Income Tax Act to allot PAN and Aadhaar is only being linked to it. 
 
Mr Datar contended that the Aadhaar Act itself does not make obtaining Aadhaar mandatory. “Going by the Attorney General 's logic about fake PANs, I get a PAN card on the basis of showing my Aadhaar as proof. Aadhaar is a basic document along with driving licence. By making Aadhaar mandatory under Section 139AA, my PAN become invalid. This has serious consequences," he said.
 
In his petition, Mr Viswam, former minister from Kerala, had stated that “Section 139AA of the Income Tax Act, 1961, which makes enrolment for Aadhaar mandatory, without making appropriate amendments to the Aadhaar Act which till date does not prescribe that the enrolment is mandatory, in a Finance Bill was with the intention of avoiding the Rajya Sabha where the ruling party does not have a majority. It is submitted that the said amendment is completely contrary to Article 110 of the Constitution, which defines a Money Bill."
 
The Modi government had enacted the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act of 2016 as a Money Bill. However, Congress MP and former Union Minister Jairam Ramesh had challenged this enactment in the apex court.
 
Ever since Finance Minister Arun Jaitly announced to link Aadhaar number with PAN card and mandatory for filing ITR, several people are finding it difficult to link both due to mismatch in data fields. Over the years, PAN cards are known as linked with Income Tax and ITRs and are issued through a verification process. The same cannot be said to be true for Aadhaar as it is the private companies that collect the data, which is never verified or audited by any government agency or authority.
 
The Supreme Court had time and again restricted use of unique identification (UID) number or Aadhaar to public distribution system (PDS) Scheme, the liquefied petroleum gas (LPG) distribution scheme, the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), National Social Assistance Programme (Old Age Pensions, Widow Pensions, Disability Pensions), Prime Minister's Jan Dhan Yojana (PMJDY) and Employees' Provident Fund Organisation (EPFO).  The Supreme Court has repeatedly emphasised that the UID number where permitted “is purely voluntary and it cannot be made mandatory till the matter is finally decided by the Court one way or the other“.  
 
On 15 October 2015, the Constitution Bench of Supreme Court led by the then Chief Justice HL Dattu had ruled that no person shall be deprived of services such as MNREGA, Jan Dhan Yojana, pension and provident fund schemes for want of Aadhaar. The Bench even hinted that the government risked contempt of Court if it chooses to continue to make Aadhaar number a mandatory condition.
 
Earlier on 23 September 2013, a bench of Justice J Chelameswar, Justice SA Bobde and Justice C Nagappan, without going into concrete examples, had said: "In certain quarters, Aadhaar are being insisted on by various authorities."
 
"...no person should suffer for not getting the Aadhaar in spite of the fact that some authorities had issued a circular making it mandatory and when any person applies to get the Aadhaar voluntarily, it may be checked whether that person is entitled for it under the law and it should not be given to any illegal immigrant," the apex court had said in its order. 
 
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COMMENTS

BR

2 months ago

Please give the copy & no.of the Supreme Court Order saying that Aadhaar may be used for LPG connection. & PDS. MY EMAIL Id is braman555@gmail.com

BR

2 months ago

Please give the copy & no.of the Supreme Court Order saying that Aadhaar may be used for LPG connection. & PDS. MY EMAIL Id is braman555@gmail.com

BR

2 months ago

Please give the copy & no.of the Supreme Court Order saying that Aadhaar may be used for LPG connection. & PDS. MY EMAIL Id is braman555@gmail.com

We can't order UK to return Kohinoor: SC
New Delhi, The Supreme Court on Friday said that it cannot pass an order to bring back the Kohinoor diamond which is in the possession of the United Kingdom or say that they should not auction it.
 
Dismissing off the petition by the All India Human Rights and Social Justice seeking direction for bringing back the diamond, a bench headed by Chief Justice Jagdish Singh Khehar observed this.
 
Khehar said: "We are quite surprised how can an Indian court pass an order to bring something which is in the UK."
 
The bench further said: "Can we say England should not auction some property."
 
The court said this as the petitioner NGO sought direction that the UK should not auction the diamond. 
 
Disposing off the petition, the bench also said that it was satisfied with the government's response that it was making efforts to get the diamond back. 
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

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COMMENTS

SRINIVAS SHENOY

2 months ago

The British always pride that they are just and reasonable, though the events prove the contrary. If they put into practice what they preach, they should not hesitate in returning the Kohinoor diamond to India, who are the rightful owners.

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