Sensex drops more points
Mumbai: Selling pressures continued to dominate the markets, taking the Bombay Stock Exchange’s Sensex to a close of 5301, or 27 points below its previous closing. On the National Stock Exchange, the S&P CNX Nifty lost 43.50 points, or 2.64 per cent, to close at 1,602.75.

Lack of buying by funds was the main reason for the decline. Matters were made worse by rumours about an income tax department survey of brokers would result in brokers withdrawing funds from the market to pay taxes. The equities most affected by the fall were technology stocks. Cyclicals too were affected. A part of the bearish sentiment was due to foreign funds’ lack of interest. Himachal Futuristic was blocked at the lower end of its price band at Rs 2,079, Digital Equipment declined 8 per cent to close at Rs 879, HCL Infosys also closed 8 per cent lower at Rs 684, Pentamedia Graphics closed 8 per cent lower at Rs 1,670, and Silverline Industries at Rs 1,013. Bharat Heavy Electricals dropped to a new low of Rs 121 before closing at Rs 125, BPL reached a new low of Rs 183 before closing at Rs 184.

The gainers included Dr Reddy’s, which closed at the upper end of the price band at Rs 1,291. Cadbury counter reached the upper end of its price band, and Nestle, McDowell, ITC, Bata India, SmithKline Consumer made good gains.

The BSE registered aggregate volume of Rs 4,921.79 crore, and the NSE Rs 4,554.47 crore.

On the BSE, of the 139 forward group stocks traded, 99 declined 39 gained. In the B1 group there were 550 declines and 319 advances, and in the B2 group there were 716 declines and 452 advances. On the NSE, of the 2,418 stocks traded, 810 were gainers and 1,365 losers.
Back to News Review index page  

I-T raids on brokers
Mumbai: The income tax department conducted surveys of stock brokers in Mumbai and Calcutta on 10 March. It has already conducted a survey of brokers in New Delhi.

In Mumbai, the department’s officials raided nine brokers who are said to have declared over Rs 180 crore of undisclosed income. In Calcutta department officials raided four top brokers.
Back to News Review index page  

Two DSP Merrill funds
Mumbai: The Mumbai-based DSP Merrill Lynch Asset Management (India) is launching two funds, the DSP Merrill Lynch Opportunities Fund and the DSP Merrill Lynch Technology.com Fund, on 11 March. The funds will remain open for subscription till April 10.

While the DSP Merrill Lynch Opportunities Fund will invest in various sectors, depending upon market trends, the DSP Merrill Lynch Technology.com Fund will invest in companies engaged in e-commerce and Internet companies; hardware, peripherals and components; software products and services; and telecom, technology and technology-dependent companies.
Back to News Review index page  

ANZ fund launch soon
Mumbai: Market regulator Securities and Exchange Board of India has cleared ANZ Banking Group’s plan to launch a domestic mutual fund. The ANZ group will become the first foreign banking group to have received such permission.

However, Sebi has laid down a condition – that the ANZ group’s existing Indian operations represented by ANZ Grindlays Bank will not be involved in any way with the management of the asset management company. Only, the Grindlays’ premises would be allowed to be used for distributing the fund’s products.
Back to News Review index page  

RPG Netcom IPO
Calcutta: RPG Netcom, the cable and media company which is part of the RPG group will make an initial public offering soon. This decision follows a valuation of the company by PricewaterHouseCoopers.

The company may use the book building route for price discovery. The PwC report is reported to have valued RPG Netcom at Rs 260 crore.
Back to News Review index page  

BSE margin norms for big brokers eased
Mumbai: The Bombay Stock Exchange has eased a rule that compelled its top 25 brokers to pay incremental additional capital and margins as cash or fixed deposit receipts only. The BSE has now decided to accept incremental additional capital and margins in bank guarantees and securities.
Back to News Review index page  

I-T may allow 100% rebate on brokers’ Bolt expenses
Mumbai: According to K V M Pai, chief commissioner, income tax, Mumbai, the government’s revenue department may be willing to offer 100 per cent deduction on expenditure incurred on software or payment for acquiring the BSE Online Terminal system.

Such expenditure is currently not allowed on the grounds that software expenditure is a capital expenditure. Brokers have argued that the expenditure on software is a licence fee for using the software and that the amount paid is not for acquisition of software.
Back to News Review index page