WhatsApp leak: Sebi, bourses checking trade details of over 24 companies

The exchanges are analysing the trade data of the last 12 months of such companies in order to detect any possible breach of norms

Sebi and exchanges have started examining trade details of over two dozen stocks as part of a probe into the alleged leak of key financial details of these companies through WhatsApp while the regulator is also considering seeking call data records of the persons involved.

The companies include several listed blue-chip firms, officials said on the condition of anonymity.

The exchanges are analysing the trade data of the last 12 months of such companies in order to detect any possible breach of norms while Sebi is taking the help of data warehouse and its intelligence systems, they added.

Under Sebi rules, all the financial details of listed companies should be disseminated only through stock exchanges as they are considered price-sensitive.

Besides, Sebi is considering seeking call data records (CDRs) of all the persons involved in alleged circulation of key financial details and other information about listed companies on social media groups before they are made public.

ALSO READ: WhatsApp earnings leak: Sebi must monitor insider trading on social media

The markets regulator has powers to seek call data records, excluding the exact content of the communication, from telecom firms.

CDRs generally list out the number of conversations between two or more entities and are different from phone- tapping, where an agency can snoop on or record telephonic conversations of those suspected to be engaged in some wrong- doings.

The information about the listed companies is mostly being made through SMSes, WhatsApp and various social media platforms, where names of some established brokerage houses and exchanges are also being misused.

While the Securities and Exchange Board of India (Sebi) has already taken action in several such cases so far, it is investigating a number of others involving similar activities, the official said.

The regulator has already taken action against several entities for providing investment advice without registration. These included MCX Biz Solutions, Moneyworld Research and Advisory, Global Mount Money Research and Advisory, GoCapital, CapitalVia Global Research and one Imtiyaz Hanif Khanda and his maternal uncle Vali Mamad Habib Ghaniwala. (more)

Markets remain listless; Bank of Baroda drops 7% Edit

Markets remain listless; Bank of Baroda drops 7%

Benchmark shares indices continued to trade firm led by gains in index heavyweights ITC and Reliance Industries and IT majors.

At 10:30am, the S&P BSE Sensex was up 22 points at 27,797 and the Nifty50 was down 4 points at 8,572. In the broader market, the BSE Midcap and Smallcap indices were trading flat with mixed bias. Market breadth was firm with 1011 advances and 948 declines on the BSE.

ITC was up 1.3% on renewed buying interest while Reliance Industries was up over 1%.

IT majors continued to trade firm with Infosys and TCS were up 0.5%-0.9% each.

On the losing side, Bank of Baroda was down 7% after the state-owned bank reported 60% year-on-year (YoY) drop in net profit at Rs 424 crore for the quarter ended June 30, 2016 (Q1FY17) due to higher provisions and lower net interest income. Further, the bank’s gross net performing assets (NPA) as a percentage of total loans rose to 11.15% at the end of the June 2016 quarter as compared to 9.99% in the March quarter and 4.13% in the June 2015 quarter.

Sun Pharma was down 2% on the back of weak earnings from its overseas subsidiary Taro Pharmaceuticals.(more)

Nifty reclaims 8,200 on 7th Pay Commission approval; Brexit woes ease

Nifty reclaims 8,200 on 7th Pay Commission approval; Brexit woes ease

Benchmark indices ended near day’s high after the Cabinet today approved the recommendations of the 7th Pay Commission. Investors’ sentiments were further boosted due to recovery in global stocks after near term Brexit concerns eased.

The S&P BSE Sensex rose 216 points to end at 26,740 and the Nifty50 gained 76 points to close at 8,204. Among broader markets, BSE Midcap and Smallcap indices surged between 0.9%-1.2%, outperforming the benchmark indices.

ALSO READ: 7th Pay Commission: Cabinet approves big pay hike for government employees

Commenting on today's development, Motilal Oswal, CMD, Motilal Oswal Financial Services said "Just ahead of Monsoon, the 7th Pay commission will set the snowball impact in the economy. This is a well expected positive move, this will help achieve GDP growth target quicker. The Auto, consumer durables and FMCG sector would see much higher demand. The small concern could be that this may push inflation a bit higher”.

The Union Cabinet, led by Prime Minister Narendra Modi, on Wednesday approved the recommendations of the Seventh Pay Commission, a move which will boost consumption by putting extra disposable income in the hands of the central government’s 4.7 million employees.

The Cabinet has also approved the National Mineral Exploration Policy (NMEP) on Wednesday, which will pave the way for auction of 100 prospective mineral blocks, boosting India’s mining potential.

The Cabinet cleared the model Shops and Establishment Act that would allow cinema halls, restaurants, shops, banks and other such workplaces to be open 24X7. Read more.

Rajan's exit another sign of PM's unwillingness to change things: Jim Rogers

Rajan's exit another sign of PM's unwillingness to change things: Jim Rogers

The markets regained lost ground on Monday after a knee-jerk reaction to Reserve Bank of India (RBI) Governor Raghuram Rajan’s decision over the weekend to quit after his term ends. Jim Rogers, chairman of Rogers Holdings and author of Street Smarts: Adventures on the Road andin the Markets, tells Puneet Wadhwa that Prime Minister Narendra Modi knows what needs to be done in India, but is reluctant to do it. The markets, he says, may react negatively in the short run, but will go up once the new governor takes charge and prints more money. Edited excerpts:

What is your interpretation of the sudden exit by the Reserve Bank of India (RBI) governor?

This is more of the same from Mr Narendra Modi. He always talks of making changes in India, but he doesn't. He has got his own people and he is also putting more of his people in power. He does not like Raghuram Rajan , who recently quit as the central bank head because he was cleaning up the banks and was against crony capitalism. So, Mr Modi knows what needs to be done in India, but is reluctant to do it. Mr Modi ran his election campaign on the platform that he is going to change and save India. Unfortunately, he hasn't done much of that till now. This (Raghuram Rajan's exit) is just another sign of unwillingness of Mr Modi to change things.Read more.

Poll results may trigger knee-jerk reaction

Markets are gearing up for the outcome of Assembly elections in five states – Tamil Nadu, Kerala, West Bengal, Assam and Puducherry – scheduled for May 19. Though an unfavourable outcome for the Narendra Modi-led National Democratic Alliance (NDA) could trigger a knee-jerk reaction in the markets, analysts rule out a significant correction from the current levels.

LIVE BLOG: In 2 days, you will know the people's verdict: Jayalalithaa

Factors like the progress of monsoon, corporate earnings, inflation trajectory and the Reserve Bank of India (RBI)’s stance on policy rates will be key in determining market direction over the next few weeks, they say.

Also Read: Kerala assembly elections: Will BJP make inroads this time?

“The markets could see a negative knee-jerk reaction and come under pressure in the short-run in case the NDA were to lose in Assam, the only state where it hopes to win. Even then, I do not expect the Nifty50 index to slip below 7,500 levels. The upside, too, seems to be capped around 7,900 levels. Besides the election, the ongoing results season and the progress of the monsoon over the next few weeks will have a bearing on market direction,” says U R Bhat, managing director,Dalton Capital Advisors.

Also Read: Assam assembly polls: Will Himanta Biswa Sarma make BJP's luck in the state?

For Tirthankar Patnaik, India strategist at Japan-based Mizuho Bank, the progress of monsoons over the next few weeks is a bigger concern than State election outcomes. He, too, expects the Nifty50 to find support at 7,500 levels in case of unfavourable election outcome and sees the upside capped at 8,000.Read more.

Investors can give rail related stocks a miss: analysts

Rail related stocks have underperformed the market thus far in calendar year 2016 (CY16) with counters such as Hind Rectifiers, Kernex Microsystems, Stone India and Titagarh Wagons skidding around 16% - 22%.

While the market participants are keenly eyeing the Union Budget proposals, analysts say the Railway Budget too assumes significance this time around given that it is being looked upon for its potential to rejig the investment cycle as well as bring transformative change to transportation in India.