ALL I-T REFUNDS IN BANK ACCOUNTS ONLY

In a step that would bring delight to taxpayers, the Income Tax department has put in motion a new plan which will ensure that any refund on tax paid is safely deposited in their personal bank account as soon as it is processed and released. The department is also planning to fully adopt and use banking services to end the current system of sending I-T refunds over the value of Rs 50,000 via cheques through the postal department. CBDT Chairperson Anita Kapur, during a recent interaction with the media, said the plan is being worked out on priority and is aimed at bringing an end to taxpayers' grievances regarding this particular service. She said that Central Board of Direct Taxes (CBDT) got in touch with banks and their regulator, Reserve Bank of India (RBI), after it found that the problem of wrong refunds or no refunds at all was continuing unabated. RBI, Kapur said, told them that in the e-environment, when a refund is sent directly to a taxpayer's bank account, the existing protocols are such that banks do not match the name to the account number. "They only look at the account number and to whichever account number the cheque is issued, the (refund) will get credited there. "We have a large number of instances where people quote wrong account numbers and, if we were to send refunds to those account numbers, and the banking system does not match the account number with the name, then the chances of taxpayers being further aggrieved are much larger," the CBDT boss said. Kapur added that after analysing the problem, CBDT, the apex policy-making body of I-T department, thought of bringing about some changes. "Now, we are trying to work out a system that when a taxpayer gives his account number and if we can do some kind of prior matching with the bank... that is one step we are going ahead and if we get the comfort-level that the bank account number and the name of the taxpayer matches, we should be able to push all the (refunds) automatically to the bank account rather than sending them through speed-post, which is the current practice," she said.

Kapur said the department's aim is to ensure that the cost of compliance for a taxpayer vis-a-vis his or her tax liabilities becomes as low as possible and that grievances are handled and resolved on priority by the I-T department. "We have put grievance redressal on our priority accelerator; all taxpayer grievances must get redressed within the timelines that we currently have. We try and redress grievances within 60 days of filing and, if there is some complicated issue, then it will take some time. "But the general norm should be 60 days and all grievances get redressed," she said. The CBDT Chairperson said that Prime Minister Narendra Modi had some time back held a review in this regard following which she had written to her field offices to ensure that the message of facilitating the convenience of taxpayers percolated through the ranks. "After that (PM's review), I had written to my officers again that please understand that for a small taxpayer, if the credit is not given for certain taxes or there is some other issue, then his or her problem is a universal problem because he or she faces the department for only their own case. So, we have to be sensitive to their concerns and try and get all the grievances resolved," she said.

WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

Week end Better….!!!

Planetary Position

- Moon would be transiting  from  Makha in Leo  to Chitta  in Libra. . . .

- Sun transits in Mrigasira    in Gemini and  Aardra in Gemini..

- Mercury   transits  in       Rohini in 2^nd pada and 3^rd pada...

- Venus transits in  Aslesha 2^nd  and 3rd  Pada.

- Mars transits in   Mrigasira in 3rd pada  and Mrigasirav 4th  Pada,

- Saturn transits in   Anuradha constellation in Scropio sign in 1^st Pada  and in Leo Navamsa and remains in  retrograde motion from 14^th March to 2^nd August, 2015.

- Jupiter ,, transits in  Cancer in Aslesha constellation in    Aquarius  Navamsa  .

- Rahu and Ketu continue their transit in Virgo and Pisces respectively.

Nifty Outlook for Next Week :: (22.06.2015 to 26.06.2015) …  

NIFTY :: 8225 (-246)

(Overbought …  Tecchnical Drawback  …)

Nifty gained on all the Five lays  and In view of the last session of Derivative  week  of the Month, the session would be quite  volatile. Market needs to trade above the last weeks high  to confirm this pattern.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8223, 8323, 8507 and 8387 respectively and would

act as supports / resistances. Nifty is trading  below all  the  average , particularly below 100 DMA, which is a matter of concern.

While Nifty continues to trade below the  200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the Bullish trend is in tact.

Technical Levels ::

Bullish above 8300 with resistance at 8380, 8450, 8540

Bearish below 8150 with Supports at 8075, 8000, 7925.

Nifty held  at higher levels  and  being last week of Derivative expiry  is close to resistance  of about 8300 .

Breakout level for the week is 8300,  and break down level for the week is 7875.. 

Advice for Traders ::

However, While the long term trend is bullish, Medium term would once again turn bullish only if Nifty is able sustain above 8500. If Nifty / scrips sustain above Friday’s high level, Friday’s low level could offer strong support for short term for a reasonable pullback.

Friday’s session is likely to be compared to be sessions upto Thursday.

Weekly Open level is very important for the entire week.
Short positions may be avoided as long as it maintains / closes above
Weekly open and vice versa

INDIAN OCEAN WARMING CAUSE FOR MONSOON WEAKNESS

Rapid warming of the Indian Ocean in the past century has led to a significant decrease in summer monsoon rainfall over the central-east and northern regions of India, a new study led by an Indian scientist said today. An international team of researchers led by Dr Roxy Mathew Koll, from the Indian Institute of Tropical Meteorology (IITM), Pune, found that the summer monsoon rainfall during 1901-2012 showed a weakening trend over parts of South Asia. The reduction in rainfall was significant over the central-east and northern regions of India, along the Ganges-Brahmaputra basins and the Himalayan foothills. In the study published today in the journal Nature Communications, the researchers reported that the reduction in summer rainfall over central-east India during the past century is about 10 to 20 per cent. "The Gangetic plains of India are the most heavily populated, and where agriculture is still largely rain-fed. Hence a significant reduction in rainfall over this region can be detrimental to the socio-economic livelihood in this region," Koll told PTI. The researchers used climate model experiments to demonstrate that the reduction in rainfall is linked to the rapid warming of the Indian Ocean, especially its western part, during the past century. The Indian Ocean warming, along with a relatively subdued warming of the Indian subcontinent, has played a key role in weakening the land-sea thermal contrast, a major driver of the South Asian monsoon, researchers said. Under the global warming scenario, the monsoon drivers are supposed to get stronger, which should result in increased rainfall. One of the major monsoon drivers is the land-sea temperature difference in summer, which drives the monsoon circulation towards the subcontinent. Previous studies suggested that the land in the northern hemisphere is warming much faster than the oceans, which implies that the monsoon driver should be getting stronger. Also, the rising ocean surface temperatures entail increased moisture availability in the atmosphere due to increase in evaporation and moisture holding capacity of air. Increased land-sea temperature contrast and moisture availability hence, should increase the monsoon rainfall. However, that is not the case for the South Asian monsoon, the study found.

The researchers said that contrary to what earlier studies have found, the land-sea thermal contrast over the South Asian domain has in fact reduced in the past decades. This reduction in land-sea temperature is primarily contributed by a strong warming in the Indian Ocean. The surface warming in the Indian Ocean, especially that in the western regions, have reached values of up to 1.2 degrees Celsius during the past century, much larger than the warming trends in the other tropical oceans. Apart from the ocean warming, a part of the decrease in land-sea temperature difference is also due to suppressed warming over the Indian land mass, possibly due to increased aerosols or reasons which are still uncertain, researchers said. The warming Indian Ocean also plays a role in weakening the monsoon circulation. Increased warming in the ocean enhances the large-scale upward motion of warm moist air over the equatorial ocean. This enhanced upward motion over the ocean is compensated by subsidence of dry air over the subcontinent, inhibiting convection and rainfall over the Indian landmass. "This means that a warming Indian Ocean has resulted in enhanced rain over the ocean but at the cost of rainfall over land, thereby drying the Indian subcontinent," Koll said. The study noted that climate models suggest that Indian Ocean will continue to warm under increasing greenhouse gases. It remains to be seen whether this will weaken the monsoon further. The researchers at IITM are working to address questions such as these. "We have developed an Earth System Model at IITM, which will be the first climate model from South Asia contributing a set of climate simulations for the next Intergovernmental Panel on Climate Change (IPCC) Assessment Reports," Koll said. "Development of this model is carried out with a focus on the Indian monsoon, and future climate projections for the monsoon region may be available in two to three years," he added. The study was part of an Indo-French collaboration under the National Monsoon Mission setup by India's Ministry of Earth Sciences. Koll conducted the research in collaboration with other IITM scientists Ritika Kapoor, Ashok Karumuri and B N Goswami. The research team also included Raghu Murtugudde at the Earth System Science Interdisciplinary Center (ESSIC) at the University of Maryland, College Park, US, and French scientist Pascal Terry at Sorbonne University.

MUMBAI CONTINUES TO BE THE MOST EXPENSIVE CITY

Mumbai, the financial capital of the country, held its position as the most expensive city in India and is ranked above Dallas, Frankfurt and Vancouver, according to a recent survey. Luanda, the capital of Angola, has been rated the world's costliest city to live in, for third consecutive year, as per Mercer's 'Cost of Living Survey 2015'. "India's most expensive city, Mumbai (at 74th place), climbed 66 places in the ranking due to its rapid economic growth, inflation and services basket and a stable currency against the US dollar," the survey has revealed. "It (Mumbai) has witnessed higher inflation over the last one year compared to other metro cities, higher cost of fuel, transportation, increased prices of food items, home services and rentals, impacting the cost of living," it said. The survey further said that Mumbai is ranked higher and more expensive than cities like Dallas (77), Munich (87), Luxembourg (94), Frankfurt (98) and Vancouver (119). Mumbai, the most populous city in the country, is followed by New Delhi (132nd place) and Chennai (157), which rose in the ranking by 25 and 28 spots, respectively. Besides, Bengaluru (183) and Kolkata (193), the least expensive Indian cities, climbed in the ranking as well, it said. The survey includes 207 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment. Asian cities dominate the top 10 costliest cities rankings along with major cities in Switzerland, it said. Hong Kong (2), Zurich (3), Singapore (4) and Geneva (5) top the list of most expensive cities for expatriates, while Bishkek (207), Windhoek (206) and Karachi (205) are considered world's least expensive cities for expatriates, according to the survey. Tel Aviv (18) continues to be the most expensive city in the Middle East for expatriates.

INFLATION DOWN FOR 7th MONTH IN A ROW

Inflation remained in negative territory for the seventh month in May, registering a decline of 2.36 per cent on account of subdued prices of food items, fuel and manufactured goods.
In the coming months however the price situation will depend on the progress of monsoon, experts said.
The Wholesale Price Index (WPI) based inflation was (-)2.65 per cent in April. It has been in the negative zone since November 2014. Inflation in last May was 6.18 per cent.
The lower inflation comes amid a forecast of deficient monsoon this year. In contrast to IMD's forecast of 12 per cent deficient rainfall, the onset of monsoon has been reasonably strong so far.
Citigroup said that overall the monsoon is still a risk factor but "we expect CPI (retail inflation) to undershoot RBI's Jan-16 projection by 40bps and average 5 per cent in 2015-16. This is likely to create room for further 25 bps cut in current fiscal".
The CPI inflation had inched up marginally in May to over 5 per cent from 4.87 per cent in the previous month.
As per the WPI data released by government today, vegetable inflation was (-)5.5 per cent, with potato prices falling by about 52 per cent.
Protein rich items like egg, meat and fish too were cheaper in May as compared to the previous month and so were milk, fruits, rice and cereals.
Overall food inflation was 3.8 per cent, much lower than the previous few months.
Similarly, the May inflation in manufactured items (food products, sugar, edible oils, beverages) declined by 0.64 per cent, lowest in past many months.
Inflation in fuel and power basket was at (-)10.51 per cent on annual basis, though slightly up from April.

Commenting on the data, ICRA economist Aditi Nayar said the cooling of food inflation in the WPI and Consumer Price Index over the recent months is reassuring in light of continuing uncertainties regarding the monsoon dynamics.
She said however that further rise in year-on-year inflation for pulses in May in the WPI as well as the CPI, is a cause for concern, given the uncertainty regarding the extent and timing of monsoon rainfall in key pulses growing areas, which have an unfavourable irrigation coverage.
Citigroup Research also said that notwithstanding a strong onset of monsoon, the sub-par rainfall remains a risk based on IMD forecast.
"However we've noted that the sensitivity to inflation has been on a decline and this could especially be the case if global food prices remain benign, and trends in rural wages and MSP remain moderate," it added.
The government meanwhile has asked banks to reduce their lending rates in line with the cuts affected by the Reserve Bank in 2015 in view of fall in inflation.

WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

PULLBACK IN THE OFFING

During the current week Moon would be transiting  from  Rohini In Taurus  to Aslesha in Cancer. .

.

Sun transits in Mrigasira in Taurus and Gemini.

Mercury transits in Rohini.

Venus transits in  Aslesha 3rd and 4^th  Pada.

Mars transits in   Mrigasira in 2^nd pada  and Mrigasira 3^rd  Pada,

Saturn transits in   Anuradha constellation in Scropio sign in 1^st Pada  and in Leo Navamsa and remains in retrograde motion from 14^th March to 2^nd August, 2015.

Jupiter ,, transits in  Cancer in Aslesha constellation in    Aquarius  Navamsa .

Rahu and Ketu continue their transit in Virgo and Pisces respectively.

Outlook for 15 to 20 JUNE 2015)

NIFTY :: 7979 (-115)

(Oversold …  Technical Bounce  …)

Nifty lost about 1.5% last week due to global cues. Market needs to trade above the last weeks high  to confirm this  pattern.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 8251, 8594, 8375 and 8376 respectively and would

act as supports / resistances. Nifty is trading  below all  the  average , particularly below 100 DMA, which is a matter of concern.

While Nifty continues to trade below the  200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the Bullish trend is in tact.

Technical Levels ::

For the coming week, Nifty spot is expected to be Bullish above 8200 with

resistance at 8280, 8360, 8435, 8525 and is expected to Bearish below 7900 with Supports at 7825, 7745, 7650.

Nifty could not hold at higher levels / pull back levels and fell sharply on Thurs /  Friday and  being last week of Derivative expiry  is close to strong support level of about 7900 .

Breakout level for the week is 8200,  and break down level for the week is 7890.

Advice for Traders ::

However, While the long term trend is bullish, Medium term would once again turn bullish only if Nifty is able sustain above 8500. If Nifty / scrips sustain above Friday’s high level, Friday’s low level could offer strong support for short term for a reasonable pullback.

LARGE US COMPANIES LAG BEHIND IN SOCIAL MEDIA

In a surprising find, several firms on Fortune Magazine's list of America's most admired companies are failing to achieve basic social media standards, scientists say. "We were surprised that not all the companies had a Twitter account, for instance, and not every company had a Facebook page, or a YouTube page," said Marcia DiStaso, associate professor of public relations, at Pennsylvania State University. "There are top companies that don't have a Facebook page, but just used an entry from their Wikipedia page," DiStaso said. The companies included in the study appeared on Fortune's most admired companies list in 2012. While 95 per cent of the 417 most admired companies on the list had a Facebook page, 51 per cent were basic Wikipedia-fed pages. For example, ExxonMobil and Berkshire Hathaway, two of the world's biggest companies, only have default Wikipedia page holders as their Facebook home. On an industry basis, companies in the consumer packaged goods industry, such as Coca-Cola and Coach, did the best across all three major social media platforms - Twitter, Facebook and YouTube. "When you think about the social media platforms we looked at, it's easier to communicate your content and that content resonates easier if you're in the consumer packaged goods industry," said DiStaso. "Coca-Cola could post or send out a picture of a cute animal with a bottle of Coke which, as content, isn't as hard to deliver, and you usually also have very passionate followers who will like it," said DiStaso. The companies in the study had a better handle on Twitter and YouTube, according to the researchers. A total of 82 per cent of the companies had a Twitter account and 72 per cent had a YouTube account. One industry that struggles particularly with social media is the health care industry. However, the researchers speculated that this may be because the industry is heavily regulated. Using social media effectively may help these companies do more than just sell products and services. Social media can establish personal connections between a company and its customers, researchers said. "What social media does for organisations is it really helps create brand supporters and connect with people in more ways," said DiStaso. The findings are published in the Journal of Promotion Management.

NIFTY CRACKS 8000 LEVEL

Wiping out yesterday's sharp gains, the NSE Nifty plunged to eight-month low on across-the-board selling by losing 159.10 points and settled below 8,000-level. Earlier, the bourses opened positive on a sharp fall in Current Account Deficit (CAD), but soon drained the momentary firmness following volatility witnessing huge selling pressure amid late monsoon worries as well as caution over key macro data -- IIP and CPI -- to be be released tomorrow. Sectorally, PSU banks fell 2.69 per cent, followed by realty (2.45 pc), auto (2.41 pc), bank (2.28 pc), energy (2.27 pc), financials (2.21 pc), infra (2.22 pc), IT (1.53 pc), pharma (1.47 pc) and metal (1.28 pc). The broader market also saw unwinding as mid-cap fell 2.28 per cent and small-cap dropped 1.74 per cent. Elsewhere, Asian markets closed higher tracking overnight gains in the US markets. The broader 50-share barometer opened higher at 8,157.30 and traded between 8,163.05 and 7,958.25 before finishing at 7,965.35, a fall of 159.10 points or 1.96 per cent. Stock-wise the major losers were Tata Power (5.21 pc), Idea (4.56 pc), Asian Paints (4.16 pc), Kotak Bank (4.02 pc), Bosch (3.84 pc), Tata Motors (3.67 pc), Yes Bank (3.46 pc), RIL (3.16 pc), Axis Bank (3.14 pc) and SBI (2.53 pc). Meanwhile, foreign investors sold shares worth Rs 482.11 crore yesterday. Turnover in the cash segment rose to Rs 15,405.69 crore compared with Rs 13,509.87 yesterday. A total of 8,198 lakh shares changed hands in 68,96,028 trades and the total market capitalisation of the NSE stood at Rs 94,13,420.40 crore.

INDIAN REGULATORIES RANKED AMONG BEST

India's financial market regulatory framework today got the top-most ratings from the global bodies of banking and capital market regulators, with RBI and Sebi being rated better than their peers in China and the US.
In the latest global 'assessment study' of the regulatory framework for financial market infrastructures across the world, only six countries, including India, have got the highest score of '4' for all eight parameters on a scale of one to four.
The other five countries are Australia, Brazil, Hong Kong, Japan and Singapore.
The 'Rating Level 4' means that the financial market regulators -- Reserve Bank of India (RBI) and the Securities and Exchange Board of India (Sebi) -- have all regulatory measures "fully in force". The annual assessment studies the implementation status of the international Principles for Financial Market Infrastructure (PFMIs) in various countries. These PFMIs work as global standards for the financial sector entities across the world and have been finalised by the International Organisation of Securities Commissions (IOSCO) and the Bank for International Settlements (BIS).
IOSCO is a global grouping of capital markets regulators in different countries, including Sebi, while BIS is known as the central bank for all central banks across the world.
The study showed that Sebi and RBI have put in place all necessary regulations for the PFMIs, while they also "have a legal capacity to implement the responsibilities" outlined under these global standards.
As per the latest assessment of 28 jurisdictions, the US has scored the top-most rating of 4 on five out of total eight parameters, while China has got three top-most scores.
European Union scored the top rating on six parameters, while ratings for two were 'Not Available'.
The assessment took into account regulations for central counter-parties, trade repositories, payment systems, central securities depositories and securities settlement systems. India has scored top ratings on all these counts.
The latest findings are based on the 'second update' of the first-level assessment that looked at jurisdictions having completed the process of adopting the legislation, regulations and other policies that would enable them to implement the principles and responsibilities related to financial market infrastructures.
Going by the report, all 28 jurisdictions have made "good progress" since the previous update in May 2014.
"In particular, the gap in the progress on implementation measures applicable to central securities depositories and securities settlement systems vis-a-vis other types of FMI has now closed," BIS and IOSCO said in a joint statement.
The next update of the first-level assessments will be conducted next year.
Alongside, the two global bodies are also continuing to monitor jurisdictions' progress for the second and third level assessments and the results from these assessments will be published in 2015-2016.

REFUND OF TATKAL FARES ON CARDS

To ease pressure during peak hours, Railways has decided to stagger booking of tatkal tickets by allowing reservations in AC class from 10 am to 11 am and non-AC class from 11 am. The new tatkal booking schedule will come into effect in the next couple of days, a senior railway official said. It is also toying with the idea of giving refund on cancellation of tatkal tickets, the percentage of which would be calculated based on a time frames. The public transporter has decided to rechristen premium trains as "Suvidha" trains with an overhaul in the fare structure, cancellations and bookings, Railway Member (Traffic) Ajay Shukla said. Announcing the changes in timing of tatkal bookings for AC and non-AC classes, he said the measures were taken to ensure "fast service while booking online and reducing passenger rush at the counters". Talking to reporters, Sharma said the IRCTC website had recently registered three crore hits in a day, slowing the server in the process. Besides, he said plans are afoot to refund a percentage of fare on cancellation of tatkal tickets, which is hitherto unavailable. "We are considering to refund certain percentage. We will have a time frame and if a passenger refunds within the time frame, he will be refunded accordingly," he said. Refunds will also be available on cancellations of tickets of premier trains and such refunds would go "up to 50 per cent", he said. At present, no such facility is available, making such services unpopular among a segment of the customers.

HDFC BANK LAUNCH PAYZAAP APPLICATION

The second largest private sector lender HDFC Bank today claimed to have done a global first by launching a mobile phone application that will aggregate merchants' applications and allow users to transfer funds, shop, pay utility bills, book tickets and recharge phones. "Our investors told us that banking will become obsolete and will be taken over by intermediaries. If they (intermediaries) were to do so sitting over my existing systems, why not have the capabilities myself as part of the digital banking?" managing director Aditya Puri said while launching the application. Puri said he visited Silicon Valley and met technology companies over three days last November to understand what they are doing. Accordingly, the bank developed Payzapp, which will help its customers do multiple transactions. Unlike prepaid wallets launched by its competition or non-bank companies, a customer's debit or credit card will be connected to the application and multiple transactions can be carried out on the same. A customer can transfer funds, recharge mobiles, pay bills, do travel bookings, book movie tickets; and order food, grocery and music using the specially created app, which can be downloaded from the Google Play Store from June 15. A customer can also apply for loans, purchase insurance and the bank will also give investment advice through it. The customer can do transactions and for payment, the amount will be debited directly from her credit or debit card. In a bid to make it more convenient, the bank has done away with the need to key in the one-time password for such transactions. Bank's senior executive vice-president Parag Rao said there are three levels of security, including device mapping and matching of the card number with the registered mobile number, which takes place at the backend to carry out a transaction. The product is fully compliant with RBI's two factor authentication and has also been cleared by the regulator, he said. The bank, however, did not disclose the investment which it has done for the product. At present, there are over 15 large merchants like Cleartrip, Flipkart, PVR, Bookmyshow, Indigo etc that have already tied up with the bank for Payzapp and it is targeting to take the total number of merchants to 10,000 in 45 days. In the next four months, customers will also be able to use the mobile phones to execute purchases at physical locations using the QR codes and near field communication technologies, Rao said. Eventually, it plans to make it possible for customers of other banks and financial companies to also register on the bank, Rao said, adding that there is technology which makes this possible at present.

MARKET HALTS 6 DAY LOOSING SPREE

Snapping its six-day losing streak, the benchmark BSE Sensex today surged 359 points to recover from near eight months low to 26,840.50 on value-buying as MSCI deferred inclusion of China A shares in its index. Moreover, rupee's recovery against dollar to Rs 63.78 (intra-day), too boosted sentiment. The Sensex opened on a strong footing at 26,517.32 and continued its upward trend to hit day's high of 26,934.74 on across-the-board value buying in blue-chips. However, due to profit-booking at higher levels, the index slipped at the fag-end and closed 359.25 points or 1.36 per cent higher at 26,840.50. The gauge had lost 1,367.74 points in previous six days. Brokers said apart from value buying, MSCI deferring inclusion of China stocks to its benchmark indices, rather opting to sort out regulatory issues, bolstered trading sentiments. Stocks of BHEL emerged top gainers among 30-Sensex stocks by surging 4.21 per cent to Rs 251.40, followed by Wipro 3.60 per cent to Rs 563.30. The 50-share NSE Nifty halted its seven-session falling trend and reclaimed the 8,100-mark by surging 102.05 points or 1.27 per cent to close at 8,124.45. Other gainers on the Sensex included, Bajaj Auto 3.08 per cent, RIL 2.49 per cent, L&T 2.37 per cent, Tata Power 2.22 per cent, ICICI Bank 1.85 per cent, Infosys 1.69 per cent, TCS 1.72 per cent and Tata Motors 1.40 per cent. Stocks of sugar companies were back in the limelight after the government today approved Rs 6,000 crore interest-free loan to sugar mills to help them clear partly cane price arrears to farmers that has touched about Rs 21,000 crore. Meanwhile, foreign investors sold shares worth Rs 645.02 crore yesterday as per provisional data. Sectorally, the BSE IT gained the most by surging 2.08 per cent, followed by capital goods 2.04 per cent, auto 1.82 per cent, oil&gas 1.33 per cent and bankex 1.26 per cent. Tracking overall trends, broader markets were also in better shape with BSE small-cap index rising 1.11 per cent and mid-cap index gaining 1.08 per cent. Globally, a weak trend was seen in other Asian markets and higher opening in European markets.

DEAL FRIMLY WITH NON SERIOUS CHARITIES

Taxman should dig out solid proof against "black sheep" entities in the country who claim illegal income tax exemptions from the government in the name of doing charity, CBDT has told the I-T department. Asking tax sleuths to crack down on such activities which lead to huge loss of revenue, the apex policy making body of the tax department has asked them to deal with these cases "firmly" as activities of non-profit organisations (NGOs) have grown considerably and their "regulation" is essential in view of huge taxes "foregone". "Separating black sheep from white sheep is not an easy task especially when the tax evaders pulls wool over the taxman's eyes. However, this is a task with which all tax officers are familiar. Their expertise lies in providing proof of the real colour rather than merely naming the colour which even a layman can do. "While this needs to be done in any jurisdiction, in the case of charities, the default colour is white and the officers need to be careful in handling them with sensitivity and discretion. Charities are encouraged as matter of public policy which is effected through tax policy and tax administration needs to be in line with the same," the Central Board of Direct Taxes (CBDT) said in its latest strategy paper. The paper prepared for deliberations and action during the recently concluded national conference of tax officers here, also accessed by PTI, is meant to guide I-T department officials during the current financial year of 2015-16. The Board has also asked the I-T department to diligently and "delicately" separate wheat from the chaff and ensure that genuine acts of charity and well-being do not suffer the I-T heat. "Genuine charities and charities abiding by the regulations need to be given full support and assisted so as to minimise their administrative cost of compliance so that they can devote their time and surplus for the noble work they are doing. "At the same time, cases of serious breach of regulations and pocketing of profits by persons controlling such institutions need to be dealt with firmly," it said.

DIAMOND NECKLACE FETCH Rs. 13 CRORE IN AUCTION

A diamond necklace designed by acclaimed Indian jeweller Nirav Modi has fetched Rs 13 crore at a Christie's auction in Hong Kong. The 10.2 carat diamond necklace was previously sold in another sale by the auction house in the year 2011. "The Orchid Ainra Necklace achieved a price of Rs 13 crores, a phenomenal 71 per cent appreciation in value since its previous sale by the same auction house in 2011," the jeweller said in a statement today. The necklace contains pear-shaped diamonds weighing 10.02 and 2.66 carats each and is spaced by a fancy purplish red hexagonal-shaped diamond. "The diamond has been certified as a Type IIa diamond by GIA (Gemological Institute of America), the most sought after gems in the world due to their exceptional colour and clarity," the statement added. Red diamonds are said to be among the rarest in the spectrum of coloured diamonds. Pink and red diamonds are valued 50 times more than white diamonds. The jewellery went under the hammer on June 2 in Hong Kong. In 2010 the a Golconda Necklace by the jeweller was auctioned for Rs 16.29 crore (USD 3.56 million) by Christie's while at a Hong Kong auction by Sotheby's in 2012, a Riviere diamond necklace was sold for USD 5.1 million. The Mumbai-based jeweller and retailer had shot to fame in 2010 by becoming the first Indian jeweller to be featured on the cover of a Christie's auction catalogue. The auction house had till then only featured international jewellers like Harry Winston, Cartier and Van Cleef and Arpels.

SENSEX DOWN TO 8 MONTH LOW

The benchmark BSE Sensex today plunged by 245 points to 26,523.09 -- its lowest in nearly eight months -- on heavy selling in FMCG stocks amid prevailing drought fears and RBI's cautions stance on economic recovery. The 30-share barometer has seen an erosion of 1,326 points in last five sessions. The 50-share NSE Nifty continued its slide for the sixth session and dipped below the psychological 8,100-mark by tumbling 70.55 points or 0.87 per cent to close at 8,044.15.

The sentiment was also hit after a better-than-expected US jobs data raised fears that the Federal Reserve will raise interest rates this year. At the forex market, the rupee breached the 64-level to trade at 64.16 (intra-session) against the dollar. The Sensex, after opening higher at 26,814.31, advanced to touch the day's high of 26,827.05 on value-buying in recently beaten blue-chip stocks. However, it slipped into the negative zone on emergence of profit-booking and touched a low of 26,472.87 before settling 245.40 points or 0.92 per cent down at 26,523.09, a level last seen on October 20, 2014. Selling pressure was also visible in the broader indices. The BSE mid-cap and small-cap indices were down 1.54 per cent and 1.42 per cent, respectively. Caution ahead of a host of macroeconomic numbers such as IIP and inflation data, to be released this week also cast shadow on the trading sentiments, traders said. As many as 25 Sensex stocks closed in the red. Sectorally, the BSE consumer durables index suffered the most by falling 1.94 per cent, followed by metal (1.73 pc), oil&Gas (1.55 pc), FMCG (1.52 pc) and healthcare (1.17 pc). Meanwhile, mixed trend was seen in other Asian markets and a weak opening was witnessed in European markets.

MARKET IN BEAR GRIP

The benchmark BSE Sensex today plunged by 351 points to fall below the 27,000-mark on heavy selling in realty and FMCG sectors as contraction in services sector for the first time in 13 months coupled with drought fears hit market sentiment. In last two sessions, the Sensex has lost 1,011.79 points. A day after RBI chief's comment over risk of inflationary worries due to deficient monsoon amid global uncertainties, bearish sentiment persisted on economic recovery concerns. "Several short-term concerns have overshadowed investor sentiments, which have led to the Indian stock market sliding for the second consecutive trading session. Thus, the probability of a rate cut in the next policy meet has becoming much slimmer," said Hitesh Agrawal, Head Research of Reliance Securities. Frantic unwinding was seen across-the-board with rate sensitive counters hitting hard along-with frontline FMCG stocks. Mid-cap and small-cap too saw large scale selling. The Sensex after remaining in positive zone briefly at the outset, slipped into the negative zone and dipped below the 27,000-mark to hit a low of 26,698.26. It settled 351.18 points or 1.29 per cent lower at 26,837.20. This is the lowest closing since May 7, when the index had closes at 26,599.11 points. The 50-scrip Nifty after breaching the key 8,100-mark intra-day to touch a low of 8,094.15 ended at 8,135.10, down 101.35 points or 1.23 per cent.

MARKET CAP SLIPS BELOW Rs.100 LAKH CRORES

Investor wealth of BSE-listed firms, as measured by market capitalisation, today slipped below the crucial Rs 100-lakh crore mark as the benchmark Sensex tumbled over 351 points.
The market capitalisation of BSE-listed slipped to Rs 98,83,222 crore at the close of the trading session. BSE is among the world's 10 largest exchanges in terms of market value while it is the biggest globally for number of firms listed on its platform.It has over 4,200 companies listed, and over 2.7 crore investors trade on it.The total market valuation of all listed firms on the BSE had hit a record high of Rs 100 trillion in November 2014.Among the 30-Sensex stocks, 24 ended with losses led by Tata Power Company and ITC. At the BSE, 2,168 stocks declined, while 564 advanced. 76 stocks remained unchanged.

PUNE HOTEL ROOMS CHEAPEST

Pune has replaced Jaipur in offering best value accommodation for travellers in 2014, with an average room rate of Rs 5,162 after a two per cent fall from the previous year, says a recent report. The average accommodation rate offered to travellers in Pune in 2013 was Rs 5,243 per night, according to Hotels.com Hotel Price Index (HPI) report. Jaipur, which offered the best value to travellers in 2013 at Rs 4,983 per night slipped to the number two position with an average room rate of Rs 5,291 in 2014 after a six per cent hike, it said. Hotel Price Index (HPI) is a regular report on hotel prices in major destinations across the world. HPI is based on the bookings made on Hotels.com sites around the world and tracks the actual prices paid per hotel room (rather than advertised rates) per night. The new city to enter the top 10 destinations list offering best value accommodation is Kochi in Kerala, a popular tourist destination in India, which recorded one of the highest hikes with 7 per cent at Rs 5,674. Cities such as Kolkata and Hyderabad saw only a negligible rise of 1 per cent with Rs 6,472 and Rs 5,582, respectively, the report said. Chennai saw a tariff drop of 2 per cent, making rooms available at Rs 5,754. Further, Goa, which is being promoted as a year-round tour destination, witnessed a hike in hotel room tariffs by a staggering seven per cent to Rs 6,342. Mumbai continues to be the city where international travellers paid the most in terms of offering accommodation even after facing a two per cent decrease at Rs 7,889, followed by the capital city Delhi at Rs 6,899 even after the three per cent increase in prices. Hotels.com is a leading online accommodation booking website with approximately 435,000 properties around the world, ranging from international chains and all-inclusive resorts to local favourites and bed & breakfasts.

TRAINSETS FOR INTER CITY TRAVEL

The Railways has invited global players for a Rs 2,500-crore project it has lined up under Prime Minister Narendra Modi's ambitious 'Make in India' programme for the procurement and manufacture of 15 train sets which will be used for faster inter-city travel. While the successful bidder will be importing two train sets, the rest would have to be manufactured in the country, said a senior Railway Ministry official. A train set comprises coaches or railway cars where each coach is powered by a dedicated propulsion system. That means there is no locomotive required to haul the train. Introduction of the much-awaited train set project was announced by the Railway Minister Suresh Prabhu in his Rail Budget 2015-16. As per the Request for Proposal for the project, while 275 coaches will be manufactured in India, 40 would be imported. Railways wants to use these train sets to boost inter- city connectivity. The Request for Qualification (RFQ) was floated last week for the global manufacturers to join the bidding process. The bid will be opened on August 12 this year for shortlisting the qualified bidders. The RFQ is to be followed by the financial bid and the successful bidder will be awarded the contract by December this year, he said.

SENSEX TANKS 661 POINTS ON RBI CAUTIOUS STANCE

The benchmark BSE Sensex plunged by 661 points today to 27,188.38 as RBI took a cautious stance on the economic recovery even as it cut policy rates by 25 bps, while forecast of a deficient monsoon added to the rout. The Reserve Bank cut interest rate by 0.25 per cent for the third time this year but hinted there may not be any more cuts in the near-term sending stock markets in a tizzy. Inflation, however, still remains a worry for the bank as it expects price rise to remain subdued till August before rising to 6 per cent by January 2016. Meanwhile, monsoon is expected to be "deficient" as the Met department today gave "below normal" forecast for rains in the country which is likely to trigger fears of a drought. Rate sensitive -- realty, banking and auto -- suffered the most as selling remained unabated throughout the day. "RBI expects the inflation to tick higher from here owing to higher oil prices, below normal monsoon, and fall in crop output. The rise in input costs may further impact the profitability of the already ailing India Inc," said Hiren Dhakan, Associate Fund manager at Bonanza Portfolio. After opening in positive terrain, the 30-share index touched day's high of 27,902.53. It gave up initial gains and slipped into negative zone just after RBI monetary policy and nosedived to hit day's low of 27,146.68 before settling at 27,188.38 points, down 660.61 points or 2.37 per cent This is index's biggest single day fall since May 6. The wide-based NSE Nifty slipped below the crucial 8,300-level by plunging 196.95 points or 2.34 per cent to settle at 8,236.45. Intra-day, it shuttled between 8,445.35 and 8,226.05 "Adding to pessimism, Indian Meteorological Dept (IMD) latest report on monsoon indicates delay and downgrade in monsoon forecast, further dampened the sentiments," said Jayant Manglik, President-retail distribution of Religare Securities. Furthermore, weakness in the rupee which fell by 26 paise to Rs 63.96 (intra-day) against the dollar also weighed on the sentiments. Barring Airtel, all Sensex stocks ended in red. Among rate Rate sensitive scrips, SBI topped the list by falling 4.28 per cent, followed by Axis Bank by 4.20 per cent, ICICI Bank lost 3.70 per cent, HDFC 3.55 per cent and HDFC Bank 2.65 per cent.

Rs 2.26 lakh cr investor wealth wipes out

Total investor wealth fell sharply by Rs 2.26 lakh crore today with the benchmark BSE Sensex plunging by 661 points, or 2.37 per cent.
Total investor wealth of BSE-listed companies plummeted by Rs 2,26,179.25 crore to Rs 1,01,00,507 crore.
The Sensex plunged 660.61 points or 2.37 per cent to settle at 27,188.38 after forecast of deficient monsoon and cautious stance of RBI on economic recovery.
This is the index's biggest single-day fall in almost a month.
Among the 30-Sensex stocks, 29 ended with losses led by State Bank of India, AXIS Bank, Hindalco Industries and ITC.
Bharti Airtel was the lone gainer among Sensex blue-chips.
Rate sensitive -- realty, banking and auto -- suffered the most as selling remained unabated throughout the day.
At the BSE, 804 stocks advanced, while 1,875 declined. 103 stocks remained unchanged.
"Equity benchmarks witnessed steep decline after RBI took a cautious stance on economic recovery even as it cut the policy rates by 25 basis points. Adding to pessimism, Indian Met Department's latest report on monsoon further dampened the sentiments.
"As a result, selling pressure was witnessed across the board but rate sensitive sectors lost maximum amongst all," said Jayant Manglik, President-retail distribution, Religare Securities Limited.
Monsoon in the country this year is expected to be "deficient", the Met department has projected while revising its forecast from "below normal" which is likely to trigger fears of a drought.
Meanwhile, home, auto and corporate loans are likely to cost less after RBI today cut interest rate by 0.25 per cent for the third time this year to spur investment and growth but hinted there may not be any more cuts in the near-term sending stock markets into a tizzy.
RBI cut the repo rate (short-term lending rate) from 7.5 per cent to 7.25, but left all other policy tools like cash reserve requirement unchanged at 4 per cent and Statutory Liquidity Ratio (SLR) at 21.5 per cent.
"Policy announcement by RBI was at par with the expectations of D-Street. But markets were in a bad mood post policy announcement as the news was already discounted," said Rohit Gadia, Founder & CEO, CapitalVia Global Research Ltd.

TATA STEEL RECLAIMS A PIECE OF HISTORY

Domestic giant Tata Steel today reclaimed a piece of history as it acquired a desk weight which is a cut up from a section of the first steel rail track rolled at its Jamshedpur facility in 1912. The item was set up for auction in the UK. "A section of the first steel rail track rolled at Tata Steel in 1912 at Jamshedpur was cut up to be used as a desk weight with the engraving - 'First Rail Rolled from Tata Steel by the Tata Iron & Steel Co Ltd/Sakchi. India/March 18th 1912'. It was presented to Robert Crewe - Milnes, 1st Marquis of Crewe (1858-1947) by Tata Steel in 1912," the company said in a statement. However, the company did not provide the amount for which it reclaimed the piece in the auction. It said this precious heritage of the steel company became part of "The Duchess" Indian collection consisting of property and precious objects from the Estate of Mary, the Duchess of Roxburghe. "It came up for auction at Sotheby, UK and has been acquired by Tata Steel. It is expected that this piece of Indian Steel history will soon arrive at Jamshedpur and will be kept at the Centre for Excellence," the company said. Established in 1907 as Asia's first integrated private sector steel company, Tata Steel is among the top global steel companies with a crude steel capacity of nearly 30 million tonnes per annum (MnTPA). It is now the world's second-most geographically diversified steel producer, with operations in 26 countries and a commercial presence in over 50 countries. With a turnover of USD 24.81 billion in FY'14, Tata Steel has over 80,000 employees across five continents and is a Fortune 500 company.

Cos PREFER DEBT ROUTE FOR FUND RISING

Indian firms raised a staggering over Rs 1 lakh crore from the markets in April, with debt segment emerging as the most preferred route to garner capital for their corporate needs. An analysis of funds raised through various routes showed that companies have together mopped up fresh capital worth Rs 1.05 lakh crore from equity and debt markets. A large chunk of this amount or more than Rs 85,136 crore has been mopped up from debt market, while Rs 20,406 crore has been mobilised via equity route. These funds have been raised mainly for expansion of business plans and to support working capital requirements. In the equity segment, most of the funds were raised through preferential route (Rs 10,484 crore), followed by rights issue (Rs 7,498 crore) Initial Public Offers (Rs 1,392 crore) and Qualified Institutional Placements (Rs 1,032 crore). Within the debt market, the companies raised Rs 84,807 crore through debt placement route, while just Rs 329 crore was mopped up through public issuance of debt securities. Companies preferred debt route over equity for mobilising money in April and most of the funds were raised through preferential allotment and rights issue. In 2014-15, firms had raised a total of Rs 4.80 lakh crore from equity and debt markets as compared to Rs 3.92 lakh crore raked in the preceding fiscal.

NSE MIDCAP BEAT NIFTY

Buoyed by robust investor sentiment, the mid-cap index of National Stock Exchange (NSE) has rallied by 30 per cent, outperforming the larger index Nifty, in the first year of the Modi government. The mid-cap index of the NSE has given a return of 29.97 per cent since the NDA government led by Narendra Modi took charge on May 26 last year, while gain in the 50-share Nifty has been at 16.65 per cent during the same period, an analysis of the indices showed. However, small-cap has given a return of 15.59 per cent during this period. Further, all the sectoral indices barring realty and PSU banks have given positive returns. Pharma has given a return of 62.22 per cent, followed by auto (33.70 per cent), IT (29.04 per cent), finance (26.66 per cent) and bank (26.55 per cent). On the other hand, realty index dropped by 17.88 per cent and PSU bank slipped by 3.15 per cent. According to market experts, when markets perform well, smaller stocks make big gains than the front-lines. But during times of uncertainty, greater losses are seen in mid and small-cap stocks. The bullish investor sentiment following a new government at the Centre and robust foreign fund inflows have been fuelling the rally in the domestic equity market, experts added. Since Modi took charge, overseas investors have infused over Rs 93,000 crore into the Indian equities, while they invested Rs 1.6 lakh crore into the debt market taking the total to Rs 2.52 lakh crore. Retail investors are major participants in mid-cap and their activity in this segment has been upbeat over the past few months. Market players say smaller stocks are generally bought by local investors, while overseas investors focus on blue-chip shares. Mid-cap index tracks companies with a market value that is on an average one-fifth of blue-chips or large firms, small-cap firms are almost a tenth of that.

FSSAI FIXING BRAND AMBASSODORS IN MAGGI CASE

Maggi brand ambassadors including Bollywood star Madhuri Dixit were today warned of action by the government if their advertisements for Nestle's popular noodle product were found to be misleading.
While the probe was expanded to test Maggi noodle samples from across the country, Nestle India claimed that it has got tested samples in an external laboratory as well as in-house and the product has been found "safe to eat".
The company, however, did not name the laboratory and said it is "fully cooperating with the authorities who are conducting further tests".
Swinging into action, the Consumer Affairs Ministry today said the central food safety regulator FSSAI (Food Safety and Standards Authority of India) is testing samples from all states and that strict action will be taken for any violation.
All test reports are expected to come within 2-3 days.
A case has already been lodged against Nestle India by UP food regulator FSDA in a Barabanki court in Uttar Pradesh over safety standards of its product Maggi.
Actors Amitabh Bachchan, Madhuri Dixit and Preity Zinta were also separately dragged to court for promoting the 'two-minute' noodles brand.
While Bachchan said he no more endorses the brand, Dixit recently met Nestle officials in this regard and said the company has assured her about the quality of the product.
Speaking to reporters on if there would be any action against Maggi brand ambassadors, Consumer Affairs Additional Secretary G Gurucharan said, "Yes, they would be liable for action if the advertisements are found to be misleading."
"It becomes a misleading advertisement if it is found that the product does not have the attributes that the manufacturer professed. And if the brand ambassador has promoted that product and said specifically that the product has those attributes, they are also certainly liable for action," Gurucharan said.

HDFC MF REMAINS MOST PROFITABLE FUND HOUSE

HDFC Mutual Fund has retained its position as the most profitable fund house in 2014-15, with a profit after tax (PAT) of Rs 416 crore, while rival Reliance MF remains at the second place. According to an analysis of profit figures for fund houses available with industry body AMFI, HDFC MF, country's largest fund house, posted a PAT of Rs 416 crore for the full year ended March 31, 2015, while Reliance MF registered a PAT of Rs 357 crore during the last fiscal. ICICI Prudential MF, the second largest fund house in terms of assets base, reported a profit after tax of Rs 247 crore, while Birla Sunlife MF posted a PAT of Rs 123 crore.
Reacting to the profit figures, Reliance MF CEO Sundeep Sikka said: "As a fund house we believe in balanced growth - both top line and bottom line - and this has helped us deliver better results and value to our stakeholders and investors. We will continue to work towards better returns for all our stakeholders." On the assets under management (AUM) front, HDFC maintained its lead with assets base of Rs 1.46 lakh crore, followed by ICICI MF at Rs 1.32 lakh crore, Reliance MF at Rs 1.24 lakh crore and Birla Sunlife MF at Rs 1.07 lakh crore. Interestingly, the difference in profit is significant despite the fact that all these MFs are at a striking distance when it comes to AUM with a difference of Rs 10,000 crore between the top three players. "The huge difference in profitability of fund houses, despite little difference in the AUM, clearly spells out their focus and strategy. How can one explain that number two largest asset management company in AUM – ICICI MF - is nearly half in profitability of HDFC MF or Birla MF is one third of Reliance MF profits. "Clearly, the focus is on getting AUM at any cost, which is a short term strategy and may cost investors and stakeholders in the long run," sources said.