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Tax Evasion Charges for Nifty Fifty's Owners

The owners of the Nifty Fifty's restaurant chain in our area are charged with tax evasion. The federal government is accusing Robert D. Mattei and Leo T. McGlynn of conspiring with employees and an accountant to keep cash they got from customers instead of reporting it as income.

Read Details of Government's Accusations

They're also accused of filing false tax returns to keep from paying millions in taxes.
Mattei and McGlynn share ownership of Nifty Fifty's restaurants and split all the profits equally, according to the court documents filed in federal court today.

Investigators say the Nifty Fifty's owners and employees had a scheme going to keep and hide money when customers paid cash for their meals. According to the indictment, they stashed the cash in personal safes in their own homes and in bank safe deposit boxes.

The five alleged conspirators paid themselves in cash as well as most of the other restaurant employees, which allowed them to avoid paying more than $850,000 in employment taxes from 2006 to 2010, according to the indictment. During that same time period, they also used the cash to pay suppliers, which allowed those other businesses and people to evade paying taxes.

The defendants hired an accountant to prepare false federal tax returns for the restaurants, as well as false individual tax returns, according to the indictment. From January of 2006 to August 23 of 2010, the defendants did not properly account for more than $15.6 million in gross receipts, according to the indictment. That means they evaded paying taxes that amount to more than $2.2 million, according to the government.

All of the defendants under reported their personal income, sometimes claiming their taxable income was $0. On some of their returns between 2006 and 2010, they asked for refunds.
Other employees named in the indictment are two head managers -- Joseph B. Donnelly and Brian F. Welsh. Office manager, Elena V. Ruiz, who handled payroll and paid all the bills is also named as a conspirator. She is Mattei's daughter.

According to government investigators, those five people conspired for more than twenty years to defraud the government. The scheme to hide cash started in 1986 and went on until October of 2010, according to the government.

If convicted, Mattei and Welsh could spend up to 40 years in prison. McGlynn and Donnelly face a maximum sentence of 50 years if convicted, and Ruiz faces ten years.

A spokesman for Nifty Fifty issued this statement:

We deeply regret our misconduct and accept full and complete responsibility for our actions. We have been fully cooperative with the IRS to resolve these issues and have repaid all back taxes and penalties. We will continue to run each of our five restaurants in full compliance with the law.

We wish to thank all of our employees, friends, and business partners for their continued support as we move forward. Because this matter is still in the court system, we can have no further comment on this matter at this time.

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May 16, 2012
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Nifty Fifty's owners accused of skimming millions in cash

Five owners of the popular Nifty Fifty's throwback-theme restaurant chain were accused today of beating the IRS out of millions of dollars, which the feds claim was stashed in safes.

The feds also allege that this was business as usual from the founding of Nifty Fifty's in 1986. The chain now has five locations in Pennsylvania and New Jersey. The stores plan to remain open.

Robert Mattei, 73, of Del Ray Beach, Fla., Leo McGlynn, 52, of Swarthmore, Brian Welsh, 48, of Springfield, Joseph Donnelly, 49, of Springfield, and Elena Ruiz, 46, of Drexel Hill, are charged with conspiracy to commit tax evasion, and tax evasion, for allegedly constructing a long-running scheme to avoid paying millions of dollars in personal and employment taxes as related to their restaurant chain, the U.S. Attorney's Office announced.

The company issued a statement: "We deeply regret our misconduct and accept full and complete responsibility for our actions. We have been fully cooperative with the IRS to resolve these issues and have repaid all back taxes and penalties. We will continue to run each of our five restaurants in full compliance with the law. We wish to thank all of our employees, friends, and business partners for their continued support as we move forward. Because this matter is still in the court system, we can have no further comment on this matter at this time." 

The information - a formal complaint that often indicates that a plea deal is in the works - alleges that the five owners not only evaded paying the taxes they owed, they filed false income tax returns claiming they were due refunds. Mattei, McGlynn, Donnelly, and Welsh are also charged with bank fraud; and McGlynn and Donnelly are also charged with aggravated structuring of financial transactions.

The information says the defendants paid employees a portion of their wages with unreported cash in order to evade payroll taxes; paid suppliers with unreported cash; and had false tax returns prepared that under-reported income and falsely inflated expenses and deductions.

Just between the years 2006 and 2010, it is alleged the defendants deliberately failed to properly account for $15.6 million in gross receipts, thereby evading $2.2 million in federal employment and personal taxes.

It is further alleged that Mattei, McGlynn, Donnelly, and Welsh committed bank fraud by submitting to the bank bogus income tax returns in order to secure several business loans; and that McGlynn and Donnelly structured numerous cash deposits of undeclared income into a bank account in an effort to avoid federal reporting requirements.

Potential penalties: If convicted, Mattei and Welsh face a maximum sentence of 40 years of imprisonment, five years of supervised release, a fine of up to $1.5 million, full restitution to the IRS, and a $300 special assessment. If convicted, McGlynn and Donnelly face a maximum sentence of 50 years of imprisonment, five years of supervised release, a fine of up to $2 million, full restitution to the IRS, and a $400 special assessment. If convicted, Ruiz faces a maximum sentence of 10 years of imprisonment, three years of supervised release, a fine of up to $500,000, full restitution to the IRS, and a $200 special assessment.

Read the information here.

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May 16, 2012
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Nifty Fifty's owners accused of skimming millions in cash

Five owners of the popular Nifty Fifty's throwback-theme restaurant chain were accused today of beating the IRS out of millions of dollars, which the feds claim was stashed in safes.

The feds also allege that this was business as usual from the founding of Nifty Fifty's in 1986. The chain now has five locations in Pennsylvania and New Jersey. (Slogan: WE ARE NOT JUST ANOTHER RESTAURANT, BUT A WAY OF LIFE.)

Robert Mattei, 73, of Del Ray Beach, Fla., Leo McGlynn, 52, of Swarthmore, Brian Welsh, 48, of Springfield, Joseph Donnelly, 49, of Springfield, and Elena Ruiz, 46, of Drexel Hill, are charged with conspiracy to commit tax evasion, and tax evasion, for allegedly constructing a long-running scheme to avoid paying millions of dollars in personal and employment taxes as related to their restaurant chain, the U.S. Attorney's Office announced.

The information - a formal complaint that often indicates that a plea deal is in the works - alleges that the five owners not only evaded paying the taxes they owed, they filed false income tax returns claiming they were due refunds. Mattei, McGlynn, Donnelly, and Welsh are also charged with bank fraud; and McGlynn and Donnelly are also charged with aggravated structuring of financial transactions.

The information says the defendants paid employees a portion of their wages with unreported cash in order to evade payroll taxes; paid suppliers with unreported cash; and had false tax returns prepared that under-reported income and falsely inflated expenses and deductions.

Just between the years 2006 and 2010, it is alleged the defendants deliberately failed to properly account for $15.6 million in gross receipts, thereby evading $2.2 million in federal employment and personal taxes.

It is further alleged that Mattei, McGlynn, Donnelly, and Welsh committed bank fraud by submitting to the bank bogus income tax returns in order to secure several business loans; and that McGlynn and Donnelly structured numerous cash deposits of undeclared income into a bank account in an effort to avoid federal reporting requirements.

Potential penalties: If convicted, Mattei and Welsh face a maximum sentence of 40 years of imprisonment, five years of supervised release, a fine of up to $1.5 million, full restitution to the IRS, and a $300 special assessment. If convicted, McGlynn and Donnelly face a maximum sentence of 50 years of imprisonment, five years of supervised release, a fine of up to $2 million, full restitution to the IRS, and a $400 special assessment. If convicted, Ruiz faces a maximum sentence of 10 years of imprisonment, three years of supervised release, a fine of up to $500,000, full restitution to the IRS, and a $200 special assessment.

Read the information here.

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May 16, 2012
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Sensex plunges 288 points on Euro zone woes

The Nifty and the Sensex lost in excess of 1.7 per cent on Wednesday following a worldwide sell-off on equities.

The Nifty closed 1.71 per cent below yesterday’s close at 4,858.25, down 85 points.

The Sensex lost 298 points (1.83 per cent) to close at 16,030.09.

The Nifty breached 4850 levels and hit an intraday low of 4837.05 while the Sensex went down below the 16000 mark to record an intra-day low of 15974.6.

“Weakness in the Indian rupee is creating the problem,” said independent market analyst Mr Nirmal Rungta.

“The equation on oil is not improving for India despite softening of crude prices. But things should improve if rupee tops out.”

The rupee was trading at Rs 54.48 to a dollar down 42 paise from its opening price on Wednesday morning.

“The declining foreign exchange reserves limit the RBI’s ability to intervene in the local market and a burden of import bill also reduces the impact of the intervention,” said Mr Abhishek Goenka, CEO, India Forex Advisors.

“Even the recent steps taken by the RBI related to the exchange earner account and bank overnight limit didn’t provide much support to the rupee,” he added.

All the indices on the Nifty and the Sensex closed in the red.

Volatility was up 6.41 per cent and the IndiaVix closed at 23.71.

BPCL, PowerGrid, Cairn, Bajaj Auto and Kotak Bank were the top five Nifty gainers while Tata Motors, Tata Steel, SAIL, R-Infra and JP Associates were the top losers.

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May 16, 2012
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Indian Stock Futures Slump on Greek Vote, Debt Concerns

Indian stocks plunged to a four-month low, tracking global equities, as talks to form a new Greek government failed, threatening pledged spending cuts required to secure bailouts and ease the country’s debt crisis.

Tata Motors Ltd. (TTMT), the owner of Jaguar Land Rover, tumbled the most since about eight months. Infosys Ltd. (INFO), the nation’s second-largest software services provider that gets 21 percent of its sales from Europe, dropped for the first time in three days. The BSE India Sensitive Index (SENSEX), or Sensex, sank 1.6 percent to 16,057.56 at 9:42 a.m. in Mumbai. The gauge has lost 13 percent from a recent high on Feb. 21, exceeding the 10 percent slump that signifies a correction to some investors.

Asian equities, commodities dropped and the yen weakened on the European crisis concern. The MSCI Asia Pacific Index plunged 2.2 percent, its sixth day of loss.

Greece will hold new elections as President Karolos Papoulias failed to form a coalition following an inconclusive May 6 vote, jeopardizing 240 billion euros ($306 billion) in bailouts and prompting concerns the debt crisis may be worsening in Europe, India’s largest trading partner.

To contact the reporter on this story: Rajhkumar K Shaaw in Mumbai at rshaaw@bloomberg.net

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net

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May 16, 2012
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Yes! Chanel Will Be Selling Those Nifty Double C Stickers

Yes! Chanel Will Be Selling Those Nifty Double C Stickers Never one to skip a beat in creating seasonal gems that sell out before they hit counter — remember the temporary tattoos? — it's been confirmed that Chanel will release black velvet double C stickers as part of the upcoming Collection Versailles de Chanel. Will you buying? Head over to Bella and have your say.

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May 16, 2012
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Sensex trading flat

The Indian market indices ended the day up 0.7 per cent on Tuesday breaking the five-day losing streak.

The market had declined by about 4 per cent in the last five sessions. The NSE Nifty, on Tuesday, was up 35 points to close at 4,942. The BSE Sensex ended the day at 16,328, up 112 points from its previous close.

“Initial buying was seen in capital goods stock L&T, as sentiments improved for the counter on better-than-expected Q4FY12 results declaration yesterday. Buying was also seen in IT stocks as value buying emerged after the recent fall. Momentum increased as the session progressed,” said Ms Shanu Goel, Senior Research Analyst, Bonanza Portfolio. The scrip of L&T was up 5.4 per cent on Tuesday and the capital goods sector was the best performing sector on the BSE (up 3 per cent).

Among the Sensex stocks, Sun Pharma, Sterlite Industries, Infosys and Hero MotoCorp were the top four gainers after L&T. The top five laggards were NTPC, Maruti, ITC, Bharti Airtel and GAIL.

The rupee is currently trading at Rs. 53.79 to the dollar.

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May 15, 2012
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Sensex, Nifty flat; global risk aversion weighs

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Reuters Market Eye - The Sensex is flat as global risk aversion is being offset by a rebound in the rupee after RBI intervention. Larsen & Toubro (LART.NS) up 4 percent after it sets a robust order and ...
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May 15, 2012
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Sensex, Nifty open volatile; rupee hits 54/USD

Mumbai: The BSE Sensex and NSE Nifty snapped five-day losing streak on Tuesday, gaining 0.7 per cent each on the back of stabilisation in European markets and Indian rupee. Index heavyweights L&T, ICICI Bank, Infosys and State Bank of India led the upmove.

After falling 700 points or 4 per cent in previous five sessions, the BSE benchmark rose 112.41 points or 0.69 per cent, to close at 16,328.25. The NSE benchmark went up 0.71 per cent or 35 points to 4,942.80.

France's CAC, Germany's DAX and Britain's FTSE were up 0.3-1 per cent after better than expected German gross domestic product data, though Greece woes still persist. Germany's GDP rose 0.5 per cent QoQ and 1.2 per cent YoY in first quarter of 2012.

Italy GDP declined by 0.8 per cent QoQ while French and Euro zone GDP remained flat at 0.00 per cent. Mecklai report says the data released on Tuesday helped allay fears of recession in the 17- member area, which majority of market participants had expected prior to the release of these reports.

The Indian rupee gained quite sharply after hitting an intraday low of 54.15 initially. Reports suggest that selling dollars by public sector banks helped the rupee gain. It appreciated by 23 paise to 53.73 a dollar as against previous close of 53.97 a dollar.

Top lenders State Bank of India and ICICI Bank were up 1 per cent and 2 per cent, respectively. Infosys, India's No. 2 software services exporter surged over 3per cent.

Larsen & Toubro, India's largest engineering and construction company by sales shot up 5.41per cent after the company strongly said its topline and order inflow would grow 15-20 per cent in FY13.

Healthcare stocks too participated in today's rally. Sun Pharma shot up over 3per cent and Cipla gained more than 1per cent.

Among metal stocks, Sterlite Industries, Tata Steel, Jindal Steel, SAIL and Hindalco climbed 2-3per cent while Sesa Goa rose 5per cent.

Two-wheeler majors too witnessed buying interest - Hero Motocorp went up 2.65 per cent and Bajaj Auto gained 1.6 per cent. Realty major DLF jumped 2.5 per cent.

However, shares of top telecom operator Bharti Airtel fell as much as 5per cent intraday, before closing 1.3 per cent down. Enforcement Directorate is probing money laundering case against the company. Bharti said it maintained highest standards of corporate governance and had always complied with all necessary norms.

Among other largecaps, ITC, NTPC, Maruti and GAIL were down 1-3per cent; HDFC Bank and ONGC were moderately lower.

In the second line shares, India Infoline and Gammon India rallied 10per cent and 16per cent, respectively after better than expected results for Q4FY12.

Fertiliser stocks spiked after Fertiliser Ministry approved 10per cent hike in urea prices, though these stocks mildly came off day's high after fertiliser secretary says any hike in urea price has to be cleared by cabinet. There is no change in urea prices as of now, he says.

Chambal Fertiliser, FACT, Madras Fertiliser, Mangalore Chemical, NFL, RCF and Zuari Industries moved up 4-9 per cent.

Geometric shot up 15.4 per cent after Rakesh Jhunjhunwala bought 10 lakh shares of the company yesterday.

Orchid Chemical was down nearly 8per cent today and fell 13per cent yesterday after disappointing set of numbers in Q4FY13.

The market breadth was neutral while the BSE Midcap and Smallcap indices gained 0.3-0.6 per cent.

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May 15, 2012
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Comment on iPad accessory a flexible stand and handle

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May 14, 2012
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Sensex, Nifty show weekly loss over 3 pc on selling

Persistent selling pressure in view of rising inflation and contraction in industrial production data pulled Sensex down by hefty 538 points to a near 4-month low of 16,298.98 in spite of fair amendments made by the Finance Minister in finance bill, mainly regarding GAAR.

With this week’s fall, the market completed straight three weeks of losing string.
The BSE benchmark Sensex collapsed by 1,080.86 points, or 6.22 per cent, and the Nifty by 361.95, or 6.84 per cent.
Selling was seen across-the-segment as all 13 sectoral indices closed in the red between 0.5 per cent and 4.67 per cent.
Shares of power, IT, metal, realty, banking and healthcare sectors bore the brunt of heavy sell-off from operators and investors and ended with losses.
Only three — Bajaj Auto, BHEL and DLF — out of the 30 Sensex-based components closed with gains.
Fall in heavyweights like RIL, Infosys, TCS, Wipro, Tata, Steel, Jindal Steel, Coal Ind, Hindalco, Sterlite Ind, ICICI Bank, HDFC Bank, SBI, ITC, M&M, Tata Power, NTPC, Hero MotoCorp, Maruti Suzuki and Sun Pharma, mainly contributed to the Sensex’s fall.
The benchmark Sensex recovered its early losses on the first day of the week and rose by 82 points on fag end buying after investors cheered Finance Minister Pranab Mukherjee deferring controversial General Anti-Avoidance Rules (GAAR) in Parliament to 2013/14, giving some sigh of relief to the foreign investors.
The government also halved the capital gains tax for private equity investors to 10 per cent and decided to withdraw the levy on all precious metal jewellery, branded and unbranded, with effect from 17th March, 2012 with thresholding limit for TCS (tax collection at sources) on cash purchase of jewellery will be raised to Rs 5 lakh from the present Rs 2 lakh.

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May 14, 2012
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NSE says Nifty futures trading back to 'normal'

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MUMBAI (Reuters) - The National Stock Exchange said trading in Nifty futures was now "normal", and that prior issues involving the confirmation of orders had been resolved. An NSE spokeswoman ...
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May 14, 2012
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Sensex trading flat

Indian benchmark indices, the Sensex and the Nifty, were trading flat today due to buying by funds and retail investors at existing lower levels amid a firm trend in the Asian markets.

Release of April inflation data later today will guide the market sentiment.

At 9.47 a.m., the 30-share BSE index Senses was up 35.48 points or 0.22 per cent at 16,328.46 and the 50-share NSE index was up 12.05 points or 0.24 per cent at 4,940.95.

Volume toppers were SBI, L&T, ICICI Bank, BHEL and Tata Motors. Among 30-share Sensex, Bajaj Auto, Coal India, Sterlite Industries, ICICI Bank and Hindalco were the top performers. ONGC, Sun Pharma, BHEL, TCS and Tata Motors were the major laggards.

Except oil & gas and realty, all other BSE sectoral indices were trading in the green, with metal, bank, consumer durables and capital goods driving the uptrend.

The Sensex, which had lost nearly 620 points in the last four sessions, recovered by 65.09 points or 0.40 per cent to 16,358.07. Similarly, the broad-based National Stock Exchange index Nifty also rose 18.15 points or 0.36 per cent to 4,947.05.

In the Asian region, Hong Kong’s Hang Seng Index was up 0.07 per cent, while Japan’s Nikkei index was up 0.1 per cent in the morning trade.

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May 14, 2012
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Sensex trading flat

The stock markets closed in the red on Monday on the back of disappointing inflation data and weak global cues amidst a volatile trading session.

Moody’s downgrade of three private banks ICICI, HDFC and Axis further dampened market sentiment.

The Nifty was down 0.43 per cent or 22 points to close at 4,908 while the Sensex fell 0.47 per cent or 78 points and closed at 16,216. Realty, banks and oil and gas sector stocks were the worst hit.

Head of Fundamental Research, Kotak Securities Mr. Dipen Shah said: “After opening higher, Indian indices slid fast into the negative territory as soon as the inflation numbers were announced. At 7.23 per cent, the rate of inflation was higher than expected. The RBI will have to take this higher number into account as it tries to support the growth rate through any future rate cuts. The only silver lining is that the core inflation has not risen at a fast pace.”

Volatility was up, with the India Vix closing almost 3.47 per cent up at 23.26.

Asian Paints, Ranbaxy, SesaGoa, BPCL and Baja Auto were the top Nifty gainers while Cairn, Bank of Baroda, SAIL, Reliance Infrastructure and PNB were the losers on the Nifty.

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May 14, 2012
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Markets end lower as March IIP disappoints

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Markets ended lower on Friday as the disappointing March Index of Industrial Production which contracted by 3.5% raised concerns over economic growth. The Sensex ended lower by 127 points at 16293 while the Nifty shed 37 points at 4929.

For the week the Sensex is down 3.23% and the Nifty lost 3.14%

Earlier in the day, the Sensex dropped to the day's low at 16,234 after March IIP data was released. However in the afternoon trades the markets recovered some of its lost ground on hopes that the RBI would ease key policy rates next month. Gains in index heavyweights like Reliance Industries, Tata Motors and SBI and touched a high of 16,447. Meanwhile, the Nifty saw a high of 4,976 and a low of 4,906.

In the broader markets, the midcap and the smallcap indices ended the day lower by 0.8% each almost in line with the Sensex, down 0.7%.

India's industrial output unexpectedly fell in March for the first time in five months, driven by a slump in the capital goods sector. According to the release, March IIP data was at -3.5% with the capital goods segment contracting the most at -21.3%. Commenting on the numbers, Gokarn said that a sharp contraction in India's industrial output in March reinforces the slowdown trend in the country.

In the international markets, all the Asian markets closed in the red. The Nikkei share average sank below 9,000 for a sixth straight week of losses, with a choppy earnings season. The index closed at 8,953, down 0.6%. Hong Kong shares tumbled for a seventh straight day, after China's April inflation figures were largely in line with estimates, further dousing hopes of near-term easing despite signs of a steeper slowdown. The Hang Seng Index slipped 1.3 percent to 19,965.Kospi and Taiwan were the other notable losers, down 1%.

Following the global cues, the European markets too is trading in the red with FTSE and DAX down 0.3% each while CAC lost 0.6%

Among the sectoral indices, Health Care, Power, FMCG, Metal and IT down 1% were the major laggards today. However, Auto space saw some buying interest post afternoon trades. The index closed up 0.6% at 9,779 and the Bankex index ended flat with a positive bias at 10,836.

Auto majors, Bajaj Auto, Tata Motors up 3% each were the top gainers among the Sensex stocks followed by BHEL, SBI, DLF and Reliance Industries up 0.4-0.8%.

On the losing side were Tata Power, Sun Pharma, Hindalco, Cipla, Coal India, Maruti Suzuki and ITC down 2-5%.

Among individual stocks, Dr Reddy's has dropped over 2% at Rs 1,661 on reporting lower-than-expected fourth quarter numbers. The pharma major saw a marginal increase in consolidated net profit at Rs 343 crore for the quarter ended March 2012.

Textiles and plastics firm Sintex Industries dropped 4%after its consolidated net profit declined by 46.84% to Rs 88.42 crore for the fourth quarter ended March 31, 2012, due to reduction in demand in both domestic as well as international markets.

The market breadth was negative. On the BSE, 1772 stocks declined as compared to 978 advanced.

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May 11, 2012
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Sensex ends down 60 points in volatile trade

Sudden weakness in the European markets changed the direction of the Indian markets in afternoon trade.

The BSE Sensex and the NSE's S&P CNX Nifty, which were in the postiive terriory till 1.30 p.m., changed track and closed in the red. The Sensex closed about 60 points down at 16,420 and the Nifty about 10 points at 4,965.

"Volatility came to the fore in the late afternoon session as the Nifty slipped suddenly downwards. Exporting companies stocks were active today as the RBI laid down the rule that said all foreign-exchange earners have to convert half of the total foreign exchange earnings kept in banks into rupees," said Mr Shanu Goel, Senior Research Analyst, Bonanza Portfolio Ltd.

The market breadth, indicating the overall health of the market, turned negative from positive. On the BSE, 1,524 shares declined and 1,239 shares gained. A total of 145 shares were unchanged.

Except Oil & Gas and Consumer Durables indices, all the other sectoral indices on the BSE closed in the red; the BSE Metal and Auto were the worst performers.

The NSE volatility index, the fear gauge, closed marginally down at 22.72.

"The main concern for Indian markets is weakening rupee. If rupee weakens further and crosses 53.92 then by far it will kiss the all time low of 54.32. In this case, the Nifty is surely going to touch 4,767, that is, 78.6 per cent retracement of the rally from 4,531 to 5,630. But here the main thing is not whether it will go to 4,767 or not. The noticeable thing to keep in mind is whether Nifty will halt at 4,767 or continue to slide further," said a technical analysis note from Emkay.

Hatsun Agro, Phoenix Mills, Federal Bank, Bajaj Holdings and Page Industries saw heavy volumes on the BSE. On the NSE, top volume shockers include Jagran Prakashan, Jubilant Industries, Dhunseri Investmetns, Bharat Rasayan, Lumax Industries.

The Nifty gainers are Cairn India, IDFC, BPCL, Axis Bank and DLF while the losers were Maruti Suzuki, Jindal Steel, Ranbaxy, Punjab National Bank and Asian Paints.

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May 10, 2012
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Sensex near 4-month lows; muted impact of RBI action

By Abhishek Vishnoi

MUMBAI (Reuters) - The Sensex and the Nifty fell for a third straight session to notch its lowest close since January 16, as the RBI's measures to bolster the rupee had a muted impact and as fears grow about sustained foreign selling.

Blue chips such as State Bank of India (SBI.NS) and Infosys extended recent declines on Thursday, despite appeasing measures from the government and the Reserve Bank of India.

The government on Monday delayed a controversial plan for taxation by a year, while on Thursday the central bank announced measures to boost dollar liquidity and ease intra-day rupee volatility.

However, both measures were not seen as enough to turn the tide in Indian markets, especially as global risk sentiment tumbles because of renewed concerns about the euro-zone.

Foreign investor have sold a net of 13.4 billion rupees over the previous three sessions, according to provisional exchange and regulatory data.

"There is a risk aversion seen in international investors as even the commodities and broader markets are falling," said Sunil Jain, Head, Equity Research at brokerage Nirmal Bang.

The Sensex fell 0.4 percent to 16,420.05 points. The benchmark index has dropped 11.35 percent since hitting its 2012 peak on February 22, though it's still up 6.2 percent for the year.

The Nifty lost 0.18 percent to 4,965.70 points.

In the short-term, global risk aversion will likely play be key in determining the markets' outlook, according to traders.

Investors will also wait for industrial output data due out on Friday and the more important inflation report due on Monday.

Lenders were among the day's decliners, even as the RBI measures, most prominently its announcement on Wednesday to further ease rule on FX deposits, were seen as benefitting the sector.

State Bank of India (SBI.NS) declined 2.12 percent, while ICICI Bank (ICBK.NS) fell 0.95 percent.

Among other blue chips, software services exporters Infosys (INFY.NS) lost 0.93 percent, while Reliance Industries (RELI.NS) lost 0.14 percent.

Shares in Maruti Suzuki (MRTI.NS) ended down 3 percent after Suzuki Motor Corp (7269.T), which owns a 54.2 percent stake in the local unit, posted a lower-than-expected Q4 operating profit and gave muted guidance.

Traders also cited concerns about the competitiveness of Maruti Suzuki's petrol models after the Indian unit of main rival Hyundai Motor (005380.KS) began offering discounts and other benefits on some its domestic models.

Rival Tata Motors (TAMO.NS) fell 1.25 percent.

Car sales in India rose an annual 3.4 percent in April, according to data from an industry body, a sixth consecutive monthly increase, but lower than in recent months after the country hiked excise duty on the vehicles.

Among gainers, shares in Infrastructure Development Finance Company (IDFC.NS) rose 3 percent after both CLSA and Deutsche Bank upgraded the stock, citing attractive valuations among other reasons.

State-run Oil & Natural Gas (ONGC.NS) shares gained 1.3 percent after Jefferies initiated it with a 'buy' rating and a price target of 315 rupees, also citing valuations.

(Additional reporting by Manoj Dharra; Editing by Rafael Nam)

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May 10, 2012
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Sensex falls; banks and autos decline

MUMBAI (Reuters) - The Sensex and the Nifty fell on Thursday on concerns over selling by foreign investors, as banks and auto stocks extended recent falls.

Selling by foreign funds has been a top concern this week, with net sales reaching a provisional 13.4 billion rupees over the previous three sessions, data showed.

Among lenders, State Bank of India (SBI.NS) fell 1.7 percent, while ICICI Bank (ICBK.NS) fell 0.2 percent.

Maruti Suzuki India (MRTI.NS) led the declines in auto stocks, down 3.5 percent.

The Sensex provisionally fell 0.3 percent to 16,435.17 points, while the Nifty lost 0.1 percent to 4,970.90 points.

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May 10, 2012
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Sensex falls to near 4-month lows, Reliance Industries hit

MUMBAI (Reuters) - The Sensex and the Nifty fell for a second session in a row to notch their lowest close since January 18, as Reliance Industries dropped after cutting estimates for domestic gas reserves, while banks extended a recent rout.

The month of May is proving toxic for Indian shares. Globally, the deepening worries over the euro zone are weighing on risk assets, with the post-Greek election uncertainty hitting Asian shares on Wednesday.

That worsening global risk environment is combining with the concerns over taxation of foreign investors in India and doubts about the country's economic and fiscal outlooks.

As a result, markets are turning defensive, especially as foreign investors show signs of exiting some of their Indian holdings, with net sales of nearly 10 billion rupees in the last two sessions, according to provisional exchange and regulatory data.

The 30-share Sensex fell 0.4 percent to 16,479.58 points. The benchmark index has now lost 4.8 percent in May, worse than the 4.2 percent fall in the MSCI Asia-Pacific index excluding Japan. The 50-share Nifty lost 0.5 percent to 4,974.80 points.

"4,600-4,800 on Nifty is quite likely in near-term as investors may use excuse of global risk aversion to exit India's macro problems and tax policies," said Sandeep J Shah, the CEO of Sampriti Capital, an investment advisory firm.

Among decliners on Wednesday, Reliance Industries notched its sixth consecutive losing session, falling 1.9 percent to end at its lowest close since January 2.

The shares of the energy conglomerate were hit after it cut estimates for proven gas reserves in its Indian blocks, in the latest negative news impacting Reliance.

Also on Wednesday, JP Morgan warned of a potential "political stand-off" between Reliance and the government after the Petroleum Ministry ruled against the company's petition to recover more than $1 billion of its KG basin investments.

Banks, one of the outperforming sectors in the January-March quarter, continued a miserable month, with the NSE banking index now down 8.5 percent in May.

State Bank of India fell 3.7 percent on Wednesday, while ICICI Bank fell 1 percent.

Mahindra & Mahindra lost 3.2 percent on news that fire broke out in one of the storage areas for a plant that manufactures its Scorpio and Xylo TCF vehicles in North Maharashtra.

Shares in Punjab National Bank fell 2.1 percent to its lowest level since early January after reporting a rise in non-performing assets in its Jan-March earnings.

However, among gainers, ITC shares added 5.73 percent, reversing a slump over the previous seven sessions, as analysts say the changes to the pricing methodology for a proposed excise duty would be positive for cigarette manufacturers.

Software services exporter Tata Consultancy Services rose 2.1 percent and Wipro gained 0.6 percent on bargain-hunting after steep falls in the prior session.

Generic drugmaker, Ranbaxy Laboratories added 4.2 percent after its Jan-March net profit rose four-fold, boosted by forex gains and Lipitor sales.

(Additional reporting by Manoj Dharra; abhishek.vishnoi@thomsonreuters.com)

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May 9, 2012
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Sensex falls to near 4-month lows, Reliance Industries hit

By Abhishek Vishnoi

MUMBAI (Reuters) - The Sensex and the Nifty fell for a second session in a row to notch their lowest close since January 18, as Reliance Industries dropped after cutting estimates for domestic gas reserves, while banks extended a recent rout.

The month of May is proving toxic for Indian shares. Globally, the deepening worries over the euro zone are weighing on risk assets, with the post-Greek election uncertainty hitting Asian shares on Wednesday.

That worsening global risk environment is combining with the concerns over taxation of foreign investors in India and doubts about the country's economic and fiscal outlooks.

As a result, markets are turning defensive, especially as foreign investors show signs of exiting some of their Indian holdings, with net sales of nearly 10 billion rupees in the last two sessions, according to provisional exchange and regulatory data.

The 30-share Sensex fell 0.4 percent to 16,479.58 points. The benchmark index has now lost 4.8 percent in May, worse than the 4.2 percent fall in the MSCI Asia-Pacific index excluding Japan. The 50-share Nifty lost 0.5 percent to 4,974.80 points.

"4,600-4,800 on Nifty is quite likely in near-term as investors may use excuse of global risk aversion to exit India's macro problems and tax policies," said Sandeep J Shah, the CEO of Sampriti Capital, an investment advisory firm.

Among decliners on Wednesday, Reliance Industries notched its sixth consecutive losing session, falling 1.9 percent to end at its lowest close since January 2.

The shares of the energy conglomerate were hit after it cut estimates for proven gas reserves in its Indian blocks, in the latest negative news impacting Reliance.

Also on Wednesday, JP Morgan warned of a potential "political stand-off" between Reliance and the government after the Petroleum Ministry ruled against the company's petition to recover more than $1 billion of its KG basin investments.

Banks, one of the outperforming sectors in the January-March quarter, continued a miserable month, with the NSE banking index now down 8.5 percent in May.

State Bank of India fell 3.7 percent on Wednesday, while ICICI Bank (ICBK.NS) fell 1 percent.

Mahindra & Mahindra (MAHM.NS) lost 3.2 percent on news that fire broke out in one of the storage areas for a plant that manufactures its Scorpio and Xylo TCF vehicles in North Maharashtra.

Shares in Punjab National Bank (PNBK.NS) fell 2.1 percent to its lowest level since early January after reporting a rise in non-performing assets in its Jan-March earnings.

However, among gainers, ITC (ITC.NS) shares added 5.73 percent, reversing a slump over the previous seven sessions, as analysts say the changes to the pricing methodology for a proposed excise duty would be positive for cigarette manufacturers.

Software services exporter Tata Consultancy Services (TCS.NS) rose 2.1 percent and Wipro (WIPR.NS) gained 0.6 percent on bargain-hunting after steep falls in the prior session.

Generic drugmaker, Ranbaxy Laboratories (RANB.NS) added 4.2 percent after its Jan-March net profit rose four-fold, boosted by forex gains and Lipitor sales.

(Additional reporting by Manoj Dharra; abhishek.vishnoi@thomsonreuters.com)

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May 9, 2012
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