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Showing posts from December, 2013

INVESTROS WEALTH SOARS BY TRILLION RUPEES

Stock market investors became richer by over Rs 1 lakh crore in 2013, as a 9 per cent rally in the benchmark Sensex helped total valuation of all listed firms rise to Rs 70,44,431 crore at the end of a volatile year. Those contributing the most to the stock market wealth includes Tata group firm TCS, the country's most valued firm, as also entities like Infosys, Wipro, Tata Motors and Maruti. In 2013, shares of TCS shot-up by over 71 per cent, while Infosys gained 51 per cent, Wipro (40 per cent), Tata Motors (20 per cent) and Maruti Suzuki (19.33 per cent). This was the third consecutive year of rise in investor wealth, where Dalal Street investors became richer by Rs 1,22,616 crore to Rs 70,44,431 crore. In 2013, the benchmark Sensex rose by 8.97 per cent and recorded a new intra-day high of 21,483.74 on December 9.

The 30-share gauge ended the year on a flat note at 21,170.68, up 27.67 points.
The broader CNX Nifty of the National Stock Exchange also firmed up …

SOCIAL MEDIA TRANSFORMS NEWSROOMS

rofile on Facebook was considered being socially active. The youth today is catching up with friends on Facebooks, Twitter, BBM, Whatsapp and a plethora of apps from their PCs, mobile phones and tablets.
As this seamless mix of sociology and technology morphed into a powerful platform for public's engagement with the government, policy makers also logged on to gauge public views and looking for a stronger connect with the "aam aadmi".
Analysts expect political parties in the country to make greater use of social media for their election campaigns to increase voter support, especially among the youth.
The new year will see further expansion of this medium as companies making salt to software use this platform to advertise their products, services and connect with customers.
Advertisers are taking an integrated cross-channel approach across social media and traditional channels, while brands are turning to it for providing customer service and sup…

NO RESTRICTIONS ON SCRIBBLING NOTES

Reserve Bank today asked people not to fall prey to rumours circulating that banks would not accept banknotes with scribbling from January 1, 2014. "In the wake of rumours circulating in the market that from January 1, 2014, banks will not accept banknotes with anything written on them, the RBI has urged members of public not to fall prey to such rumours and to use their banknotes without any fear," RBI said in a notification. RBI said it has not issued any such instructions. However, in an earlier clarification, it had instructed only banks to ask their staff not to scribble or write on the body on the banknotes. "...it was observed that the bank officials themselves were in the habit of writing on banknotes which went against the RBI’s Clean Note Policy." Reiterating that writing or scribbling on banknotes works against its Clean Note Policy, RBI has also sought cooperation from all members of public, institutions and others in keeping the banknotes clean by not …

HOPES OF ECONOMIC REBOUND

Slowing growth and rising inflation marked 2013 which the country's economic managers would like to forget quickly in the hope that the new year will bring in new government and some good news. The growth rate continued to slide throughout the year despite desperate attempts by the government to stem the tide with a host of traditional and innovative measures. Pangs of inflation, driven mainly by rising prices of essential food items, added to the overall despondency in a year that saw the rupee dipping to its life time low level against the US dollar and the Current Account Deficit (CAD) soaring to historic highs. Everything began well with the Finance Ministry's Economic Survey in February asserting that the growth rate during 2013-14 would improve to 6.1-6.7 per cent, from decade's low of 5 per cent recorded in the previous fiscal. The euphoria was short-lived as the government efforts to boost growth have come a cropper with the economy slipping furth…

REVIVAL HOPES ON 2014

With high property prices and costlier borrowing hitting real estate, developers are hoping for a reversal of the slowdown in the new year and sales picking up post general elections. Low demand for flats, subdued commercial leasing, huge unsold housing stocks, buyers' protest against delays, limited launch of projects and debt-ridden developers clocking lower revenue-net profit numbers marked the year for real estate. Amid these negativities, there were two major government initiatives in form of new land acquisition Act and proposed real estate regulatory bill that would go a long way in making the real estate sector more transparent and accountable. Developers, however, kept complaining that the provisions were pro-farmer and consumer-friendly, leading to further delay in development of projects and price escalation. Cash-strapped industry, however, cheered market regulator SEBI's draft guidelines to allow Real Estate Investment Trusts (REITs) and Commerce…

NIFTY OUTLOOK FOR 1st JANUARY & REVIEW OF 31

ZIGZAG MOVEMENTS Nifty moved in a very narrow range over the last 8 trading sessions suggesting a “Big move “ in the offing as contraction in volatility leads to expansion. Nifty closed with minor gain amid lackluster movement on the last trading day of the calendar year. However, Nifty, in short term bullishness, would become weak only on a close below 6270 mark.  Nifty spot is expected to encounter resistance at 6345, 6380 and find support at 6265, 6230, for Wednesday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to display dual / zigzag movements with alternate bouts of bullishness and bearishness.
Nifty                               6304     +13
Review for Tuesday, 31st December, 2013 ::  Narrow Movement with minor Bullish Bias   ..!!
Market continues to  remain in a very tight trading range with absolutely  narrow movements. 2013 ended with a gain of more than .6.50% for Nifty (…

MARKET REVIEW OF 2013

PREDICTION ON NIFTY BY FAMOUS COLUMNIST SUNDARA RAJA

GOLD LOANS CAP 1 LAKH

Reserve Bank has allowed banks to sanction loans of up to Rs 1 lakh against pledge of gold ornaments and jewellery. "In response to suggestions from banks and with a view to ensuring a level playing field among various market participants, it has been decided to permit bullet repayment of loans extended against pledge of gold ornaments and jewellery for other than agricultural purposes...," RBI said in a notification. Bullet repayment means a lump sum payment for the entire loan amount paid at the time of maturity. The RBI in May had imposed restrictions on banks and NBFCs for providing loans against gold coins as well as units of gold ETFs and mutual funds. Also banks were asked to ensure that the amount of loan to any customer against gold ornaments, gold jewellery and gold coins (weighing up to 50 grams) should be within the board approved limit. As per today's RBI notification, the period of the loan should not exceed 12 months from the date of san…

INDIAN BOY'S RAREST FEAT

A 13-year-old Indian-origin schoolboy, whose brain is said to rival that of Albert Einstein and Bill Gates, has been classified among the top one per cent of Britain's brightest after he scored 160 points in an IQ test. Niraj Kumar from Birmingham was to be welcomed into the high IQ society Mensa. According to Mensa, those topping 140 are considered to be geniuses as an average adult's score is 100. "I was really happy when I found out I had been accepted. It is a great honour," Kumar told 'Birmingham Mail'. "I enjoy school and my favourite lesson is maths. I want to go to Oxford University but I haven't decided what to study yet. There are so many options," he said. His father Sandeep and mother Sejal Kumar, who run the Lichfield Road News shop in the city, described their son as "special". "He has always been very bright since he was very young. I always thought he was special but I didn't know just how muc…

INDIANS IN US MISSIONS ARE UNDER PAID

Indian employees of the US Embassy and consulates in India are being grossly underpaid in camparison to their American counterparts working in these missions, according to information made available to the government. Even as the External Affairs Ministry is awaiting details of Indian staff employed by the American diplomatic missions, some such current and former employees have come forward with details of their emoluments which are way below the wages being paid to American staff in similar positions. In fact, in the case of some semi-skilled Indian staff, the wages may be below those prescribed under India's Minimum Wages Act.
Information available to the government shows that an Indian Visa Officer gets a salary of around Rs 17,000 per month as against about Rs 1.10 Lakh for an American holding similar position. One security guard gets Rs eight thousand per month for an eight-hour duty daily, which is way below the Act. The government had set a deadline of Dece…

NIFTY OUTLOOK FOR 31 & REVIEW OF 30

CLOSING SUBDUED Nifty closed with minor decline amid lackluster movement. However, Nifty, in short term bullishness, would become weak only on a close below 6255 mark.  Nifty spot is expected to encounter resistance at 6330, 6365 and find support at 6250, 6215, for Tuesday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position , while forenoon can be expected to be relatively better, closing could remain subdued. Further, current week would turn bullish only on a close above 6340. Nifty                               6291     -23
Review for Monday, 30th December, 2013 ::  Lackluster Movement with minor Bearish Bias   ..!!
Absensce of active institutional participation due to global holiday season seem to be impacting market movement. Market movement was subdued and closed with a minor decline. While Sensex closed above 21000 mark, Nifty closed below 6300 level. 32 of Nifty stocks declined  and broader market too w…

WEEKLY ASTRO GUIDE

FURTHER UPSIDE POSSIBLE

Planetary Position ::  During the current week Moon would be
transiting  from Anuradha in Scorpio    to  Sravana  in Capricorn.   Sun and Mercury transit in Poorvashadha    constellation  in Sagittarius.        Mars  transits in   Hastha  constellation in Virgo.   Saturn continues in Visakha  constellation in  Taurus navamsa.  Jupiter transits in Retrograde motion (till 6th March 2014)  in Gemini and presently   in Aries Navamsa .  Venus transits in  Uttarashadha  constellations in   Capricorn sign and in retrograde motion till 1st February 2014.Further, there is a Grand Square / T square operating  involving Mars and Outer planets till 1st week of January  and high degree of volatility  . Hence, high degree of caution is suggested particularly at higher and lower levels as wild swings would break  technical  supports and resistances. Further with both auspicious planets i.e., Jupiter and Venus being in retrograde motion, sustained upside too  can not be expect…

INDIA WOULD 3rd LARGEST ECONOMY BY 2028

India is likely to overtake Japan in 2028 to become the third largest economy in the world after China and United States, according to London-based economic consultancy Cebr.
As per Cebr's World Economic League table report for 2013, India has lost a place in the league table in 2013 to Canada and is now the 11th largest economy in the world.
"But demographics and economic growth will eventually drive the Indian economy up the table and the forecast for 2028 has India becoming the world's 3rd largest economy overtaking Japan," the report said. The Cebr World Economic League Table (WELT) is an annual calculation by the consultancy. The base data for 2012 is taken from the IMF World Economic Outlook and the GDP forecast draws on Cebr's Global Prospects model to forecast growth, inflation and exchange rates. The report gives an end of year report on GDP in the 30 largest economies in the world and forecasts countries that will be in the 'top…

INVESTMENT IN REALTY ON DECLINE

Outstanding investments in the country's real estate sector were six per cent lower at Rs 14.51 lakh crore in September 2013 as against the same month previous year, according to a study by industry body Assocham. The study also revealed there is likely to be no respite for the realty sector atleast till first half of 2014. "Outstanding investments attracted by India's real estate sector have plummeted from Rs 15.39 lakh crore as of September 2012 to Rs 14.51 lakh crore as of September 2013 registering significant drop of about six per cent," Assocham said. According to the study, the real estate sector suffered grave turbulence in 2013 due to a plethora of reasons like rampant economic slowdown both globally and domestically, liquidity crunch, unstable currency, high input costs, labour shortage, high interest rates and growing inflation. Maharashtra accounted for about 20 per cent share of real estate investments followed by Gujarat (13 per cent),…

REVIEW

SENSEX UP 119 POINTS ON WEEKEND DAY The benchmark Sensex advanced 119 points today to an almost three-week high, led by IT, healthcare and financial stocks, and notched up its second weekly gain after strong overseas markets boosted sentiment. TCS and Infosys, along with HDFC and ICICI Bank, lifted the index. Wipro and Cipla were among the 18 Sensex gainers. Ten of the 12 BSE sectoral indices moved up, led by IT, healthcare and FMCG stocks. The 30-share S&P BSE Sensex opened higher and moved in positive terrain through the day before settling at 21,193.58, up 118.99 points or 0.56 per cent. It was the highest close for the index since December 10, when it was at 21,255.26. The CNX Nifty on the National Stock Exchange rose 34.90 points, or 0.56 per cent, to end at 6,313.80. The SX40 on the MCX Stock Exchange was up 61.33 points at 12,594.59. A strong global performance on the back of a rally on Wall Street yesterday amid sustained capital inflows boosted market s…

LIVESTOCK POPULATION ABOVE 31 CRORE BY 2015

The total livestock population in the country is likely to grow by over 11 per cent and touch 312 million by 2015, Assocham today said. "The total livestock population in India is currently about 280 million. It is likely to reach about 312 million by 2015," it said in a statement. Cattles constitute a share of about 60 per cent in the total livestock population followed by buffaloes, goats and sheep, it said. It also said that Andhra Pradesh, Rajasthan and Uttar Pradesh alone account for about 35 per cent of the total population. "Growing population has resulted in an upward spiralling trend in demand and consumption of milk products, meat, eggs, and leather in India," it said. It said that there is a need to improve the productivity of grazing and pasture lands, besides promoting production of fodder crops. It has suggested for providing proper support to people engaged in this sector.

CHEQUE DEPOSIT THROUGH SMART PHONE IMAGE

BRITISH BANKS INNOVATIVE APPROACH In an innovative move, British banks may soon allow customers to pay cheques into their account by taking photos on their smartphones.Rather than go to the bank in person, customers will be able to photograph the cheque, and send it electronically. The government is to launch a consultation on the idea, with a view to making the necessary legal changes, the BBC reported today. The technology will also allow cheques to be cleared in two days, rather than the six it takes at the moment. Banks say the new transfer method will be more convenient, and more secure. "Moving into a virtual world will actually create a more secure customer experience than the paper experience today," said Antony Jenkins, the chief executive of Barclays.
Such photos would not be stored on the phone itself, so there should be no security risk if a phone was stolen.
Similar technology was introduced in the US nine years ago, following the attack on the World …

MORE MALL SPACE BY 2015

Total mall space availability across seven top cities is expected to increase by almost 26 per cent to 95.7 million square feet by 2015, a recent survey said. The stock in Bangalore, Chennai, Delhi, Kolkata, Hyderabad, Mumbai and Pune is expected to increase from 76 million sqft in 2013 to 95.7 million sqft in 2015, said a survey by property consultant Jones Lang LaSalle. Delhi NCR and Mumbai lead in terms of concentration of shopping malls, it said. "As of now, Delhi and Mumbai together account for 62 per cent of the pan India mall stock. They are followed by Bangalore and Chennai, which together constitute around 20 per cent of the stock," the survey said.
Nearly 24.9 million sq ft of shopping mall space is expected to be added in the next two years.
"There is an increasing trend among upcoming malls to adopt a structured approach in planning, execution and launch. The importance of formulating an optimal tenant mix to ensure the maximum utilisation …

PAN THROUGH AADHAR

The Income Tax Department will now accept Aadhaar Card as a proof of identity and address for issuance of Permanent Account Number (PAN). The Central Board of Direct Taxes (CBDT) has issued a notification expanding the list of documents admissible as proof of identity and address by including Aadhaar Card.

Aadhaar is a 12-digit individual identification number issued by the Unique Identification Authority of India (UIDAI) on behalf of the Government of India. Now, Aadhaar Card can be used to for getting a PAN, which is a ten-digit alphanumeric number, issued in the form of a laminated card, by the Income Tax Department.
The UIDAI has issued about 51 crore Aadhaar numbers so far with about 11 lakh of such numbers generated every day. Other documents for identify accepted by the Income Tax Department include elector's photo identity card, ration card having photograph of the applicant, passport, driving licence, arms license and photo identity card issued by government …

UNIVERSAL KYC FOR ALL MARKETS

SEBI ISSUES FRESH GUIDELINESMoving towards a common Know Your Client (KYC) framework for the entire securities market, Sebi today simplified investor account opening form by doing away with details about income and occupation of the applicant for the purpose of centralised KYC registration agency. The Securities and Exchange Board of India (Sebi), in a circular, has given six months time to various market intermediaries to bring the changes in the KYC form. The Sebi said certain information about applicants like gross annual income details, occupation, permanent address proof and whether the applicant is a politically exposed person are not required for the centralised KYC Registration Agency (KRA). The decision was taken after consulting various market participants. The move would facilitate in making the KYC uniform for the entire financial sector. KRA are institutions which maintains KYC details of investors. Wholly-owned subsidiaries of stock exchanges and depos…

NIFTY OUTLOOK FOR 27th & REVIEW OF 26

A WIDE RANGE DAY Nifty traded in a narrow range amid scrip specific movement. Broader market was quite positive. In view of the narrow movement during the last Three days, a wide range day can be expected within the next Two days. A directional movement can be expected after a string of narrow movement days.   Nifty spot is expected to encounter resistance at 6320, 6355 and find support at 6240, 6205, for Friday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position , a wide range day with huge movement can be expected with positive bias.
Nifty                               6279     +11
Review for Wednesday, 26th December, 2013 ::  Narrow movement  ..!!
Market traded  in  a narrow range and closed with a small increase. 22 of Nifty stocks closed in the red and   broader market was quite positive with Advance Decline ratio of nearly 2:1Bank Nifty, Metal, IT and Infra  indices gained while Pharma, Auto and Realty indic…

47% GRADUATES ARE UNEMPLOYABLE

It seems formal education is India is not imparting enough skills to students as nearly half of the graduates of this year were found unemployable for any job, according to a study.
The study identified the key employability trends of 2013 and the most striking one was that a significant proportion of graduates of 2013, nearly 47 per cent, were found unemployable in any sector, given their English language and cognitive skills, said Aspiring Minds, a leading employability solutions company.
Of all the respondents in the survey, only 2.59 per cent of them was found employable in functional roles such as accounting, while 15.88 per cent was suitable for employment in sales related roles and 21.37 per cent for roles in the business process outsourcing sector, a report by Aspiring Minds said.
It said more females are pursuing three-year degree courses and when it comes to employability they are similar or higher suited than males.
There are 109 males to every 100 females in three-year deg…

POR ECONOMY DERAILS GROWTH TARGET OF 8%

Poor performance of the economy during 2013 derailed Planning Commission's ambitious growth target of 8 per cent for the 12th Plan, which the nation's official think-tank will revise downwards in the new year as part of its mid-term review exercise. Attributing lower-than-expected growth to global factors, Planning Commission Deputy Chairman Montek Singh Ahluwalia said 12th Plan's growth target could be lowered to around 7.5 per cent. "In the 12th Plan for the first time, upper-end performance was going to be around 8 per cent average in a year but since then global economy has done much worse. "So, today 8 per cent is bit on the high side. The possibility for next five years I feel is 7.5 per cent which is not impossible," Planning Commission Deputy Chairman Montek Singh Ahluwalia said. During the first year of the 12th Plan, India's economy grew by only 5 per cent, the slowest in a decade. In the first half (April-September) of the current fiscal FY201…

NIFTY OUTLOOK FOR 19th DECEMBER

NOW...US FED DECISSION HOLDS KEY... There was total change in the sentiment as RBI did not raise the rates as feared by market and the decision came as a pleasant surprise. If US Fed too does not hurt market sentiment, bullish sentiment would once again return to the market. One more positive close is necessary to confirm the above. It is better to wait for confirmation to initiate long positions. . Nifty spot is expected to encounter resistance at 6265, 6300 and find support at 6180, 6045, for Thursday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position,  opening  would be influenced by FOMC decision  which if not negative, Wednesday’s sentiment would continue and one more positive close would reinforce short term bullishness.  Midsession is expected to be better and profit booking could be expected towards close.
Nifty                               6217     +78
Review for Wednesday, 18th December, 2013 ::  Rbi’s …

NIFTY OUTLOOK FOR 18th DECEMBER

RBI POLICY HOLDS KEY Market has been falling for the last Six  days in a row and is with bearish bias ahead crucial events (domestic RBI Policy and US FOMC meet). As Market has been falling for the last Six days, a reasonable pullback can be expected technically and the outcome of these events would provide the direction.  Sell on Rise policy may be followed by traders with a stop loss of 6225 on close basis. Nifty spot is expected to encounter resistance at 6180, 6215 and find support at 6100, 6065, for Wednesday. While Global cues and  Funds flow  are expected to broadly guide the market movement, based on the present market position,  market is expected to be influenced by the RBI Policy and a rate hike of more than 0.25% would be negative and upto 0.25% would be in line with market expectation. However, market movement ahead of Policy has been bearish and market appears to have factored in the possible negatives and any unexpected positive surprise could spring a surprise. Nifty��…

INDIAN INC Q UP FOR POLL FUNDING

As general elections draw closer, at least five large corporate houses including those of Ambanis, Mittals and Birlas, have set up 'Electoral Trusts' for providing funds to political parties and more than two dozen other business groups are firming up similar plans.
These new trusts are being registered under a new framework that provides for mandatory inclusion of 'Electoral Trust' in their names and enables applicable tax benefits for funds given to various political outfits.
The groups that have set up their respective 'Electoral Trusts' under this new regime, put in place by the government earlier this year, include Anil Agarwal-led Vedanta Group, Sunil Mittal-led Bharti Group, Anil Ambani-led Reliance Group and Kolkata-based K K Birla Group.
These trusts have been incorporated as non-profit companies under Section 8 of the new Companies Act, 2013, and the Section 25 of the previous version of the Companies Act in the last few months,…