Thursday, October 30, 2014

MOBILE App FOR LOVE

o make things easier for those bitten by the love bug, a Kochi-based startup has launched mobile love app 'Elop'. Akash Mathew, CEO & Founder, CIED Technologies, which has developed the app says: 'This is so popular as it is a safe and easy way of expressing love, saving the embarrassment and awkardness while trying to protect friendships'.
The initial version (Desktop app) was a runaway hit, counting over 30,000 users in 130 countries in a short span since its introduction in 2014, a press release said. Developed by five budding entrepreneurs while still in a college in Kerala in 2013, the app had seen a popular acceptance, resulting in a wide user base in a short while.
The group formed Cied Technologies Pvt. Ltd. to take the concept forward and had been chosen for mentoring and incubation at Startup Village.
ELOP app currently boasts of a success rate of 10 per cent, a stunning statistic in the world of similar products. The app reduces the pestering of random profiles as it works through Facebook and the persons contacted are in the known friends list. The user adds friends to his 'Crush List', at which moment the app anonymously notifies the added person.
If the user wants to express his or her "love" or interest in another user, he or she can send song dedications to arouse curiosity. The first user can send hints which the receiver can approve of by 'liking' it. If the other person also adds the first person to his/her crush list, both are notified.
In case the target 'crush' is not an ELOP app user, the dedications and hints could be sent to their email or mobile phones via SMS. This way Elop helps users reach their special ones on their mail/phone.
The ELOP team is now running a Campus Ambassadors Programme to make the app more comfortable and accessible to users.
"The aim is to create a network of students ambassadors across campuses in the country. Students can use the App to select the ambassador for their campus by using an 'awesome' voting button on the app. We are currently running it in 20 campuses across India," says Akash. The app, which has become popular due to its anonymity features, does not post, share or tag posts, thus not even revealing that the user is using ELOP.
User identities are revealed only when there is a matching crush notification.

NIFTY OUTLOOK FOR 31 & REVIEW

ZIGZAG MOVEMENTS
 
Nifty                               8169  +79


Nifty opened steady and gained gradually to close at the highest level for the day with a gain of about 1%.   Market went up on last day of Derivative expiry due to short covering and value buying in certain scrips. Short term trend continues to remain positive  and would turn bearish only on a close below 8050.  Nifty spot is expected to encounter resistance at 8210,, 8245 and find support at 8130, 8095 for Friday. 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 zigzag movements with alternate bouts of bullishness and bearishness.

INDICES RECORD NEW HIGH

The benchmark Sensex today surged about 248 points to end at record closing peak of 27,346.33 on across-the-board buying by investors after government eased rules for FDI in construction sector and US Federal Reserve reiterated its plan to keep interest rates at record lows. While BSE Sensex today surpassed both its intra-day high and closing high logged on September 8, NSE Nifty barometer hit a new intra-day peak of 8,181.55 but ended at 8,169.20 just a few notches below its record closing peak of 8,173.90. Promient gainers which lifted key indices to record highs include RIL, Infosys, L&T, Maruti Suzuki, HDFC Bank, Hindalco, HDFC, GAIL, Dr Reddys, ITC, NTPC, TCS. "Markets have been on an upward trajectory on the back of renewed vigor shown by government to initiate reforms, lower crude prices and supportive global cues among others. Though Quantitative Easing ended, but Fed keeping the 'considerable period of time' stance for raising rates until it sees more improvement in the economy, cheered markets," said Devang Mehta, Sr VP & Head - Equity Advisory, Anand Rathi Financial. 
After opening in positive terrain, the 30-share Sensex continued its upward march and soared to hit intra-day record high of 27,390.60, surpassing its earlier peak of 27,354.99 hit on September 8. The Sensex closed with gain of 248.16 points, or 0.92 per cent, at new closing peak of 27,346.33, bettering earlier record close of 27,319.85 (September 8). The 50-share NSE Nifty jumped by 78.75 points, or 0.97 per cent, to end at 8,169.20, after touching a new intra-day high of 8,181.55 that crossed previous record high of 8180.20. Brokers said sentiments turned extremely bullish after the government had yesterday relaxed rules for FDI in the construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. DLF, Unitech and HDIL shares rose in the range of 1.5-6 per cent. "The equity markets were seen rejoicing. After a flat start, sentiments got some support from positive FII figure of the last session. However, gains remained capped as investors opted to book profits in last half an hour of the session as October derivative contracts were set to expire." Sectorwise the BSE Realty index gained the most by rising 3.44 per cent, followed by IT index 2.04 per cent. Teck Index rose by 1.77 per cent, Oil and Gas index by 1.65 per cent, Consumer Durable index by 1.59 per cent, Capital Goods by 0.94 per cent and Bankex by 0.72 per cent. 
 

Wednesday, October 29, 2014

GOLD DEMAND ACROSS WORLD


NPPA REVISES DETTOL PRICE

Drug price regulator National Pharmaceutical Pricing Authority (NPPA) has revised the prices of Dettol antiseptic liquid formulations under the directions of the Delhi High Court. In a statement NPPA said, under the revised prices, a pack of 12x5 litre of Dettol antiseptic liquid formulation will cost Rs 7,805.60 as against Rs 7,276.46 earlier. A 12x500ml glass bottle pack will now cost Rs 925.40 as against Rs 787.40 earlier, while the NPPA has capped the price for a 12x210ml glass bottle pack at Rs 454.50. Likewise, a 12x110ml glass bottle pack will be priced at Rs 260.90 and 12x60ml glass bottle pack at Rs 158.28. The move to increase price of the liquid antiseptic formulations manufactured by RB India (formerly known as Reckitt Benckiser India), comes after a protracted court battle. In 2011 the company had challenged the retail price of Dettol fixed by the NPPA before the Department of Pharmaceuticals (DoP). In August last year, DoP had issued a review order for the ceiling price fixed for Dettol. Last month, the Delhi High Court had ordered to NPPA to implement the order of DoP. Commenting on its step, NPPA said it was in implementation of directions given by the Delhi High Court in order on September 30, 2014. The matter has been reconsidered and re-examined by the NPPA in line with review order passed by the Department of Pharmaceuticals...dated 1.8.2013," it said. Comments from the company could not be obtained.

ODISHA GOVT REDUCE BUS FARES

Odisha government today announced reduction in fares by one paise per km for ordinary and express buses following the recent cut in diesel prices. Similarly, reduction by two paise per km for deluxe and deluxe AC buses has been made, state Transport Minister Ramesh Majhi said. The new bus fares came into effect today, he added. After reduction in fares, passengers will have to pay 63 paise per km in ordinary and 66 paise in express buses. Similarly, in deluxe buses passengers will pay 87 paise per km whereas Deluxe AC buses will charge Rs 1.06 per km. As the bus operators have been demanding a mechanism to automatically reduce or increase bus fare with rise and fall in the price of diesel, the minister said "we will soon take a decision in this regard." The demand for reduction in the fares was made after the Central government freed diesel from administered price mechanism resulting in a drop in diesel rates by Rs 3.63 per litre.

ANDHRA PRADESH REVENUES UP 13%

The Andhra Pradesh government posted a jump of 13.86 per cent in its revenue at Rs 12,881 crore in the first two quarters of the current fiscal, bringing in some respite to the government that has been lamenting over lack of resources due to bifurcation this year. The hike was registered against revenue Rs 11,313 crore of last fiscal's first half when the state was undivided. Officials of the revenue and other income-generating departments at a review meeting with Chief Minister N Chandrababu Naidu here today, attributed the rise to surge in consumption of home needs and petro products, which accounted for to 20 per cent and 11 per cent respectively, an official statement said. Value-added tax and Central sales tax component also recorded a 4 per cent growth compared to the first half of last fiscal. Income from commercial taxes in the first quarter of 2014-15 was Rs 6,207.41 crore, up 5.96 per cent, while in the second quarter, it saw a significant rise to Rs 6,673.83 crore, a 22.35 per cent jump over the Q2 of last fiscal, it said. The chief minister during the meeting asked officials of the Revenue Department to explore the possibility of setting up an Economic Intelligence Unit, on lines of the one in Maharashtra, to use advances in digital technologies to store and interpret data collected by sales tax department. Meanwhile, Naidu also directed officials of the Mining Department to commission a survey to assess the availability of coal reserves in the Chintalapudi area of West Godavari district by engaging consultants. He sought a detailed report in six months on the same. The issue would be taken up with the Centre for coal extraction based on the consultant's report and use the coal for power generation in the state. Finance Minister Yanamala Ramakrishnudu, Chief Secretary I Y R Krishna Rao and other officials attended the meeting.

INDIA RANKS 142 IN DOING BUSINESS

India ranked 142 among the 189 countries surveyed for the latest World Bank's "Ease of Doing Business" report released today, a drop by two places from the last year's ranking, as Singapore topped the list. The fall in India's ranking from the last year's 140 is mainly because other nations performed much better, Bank officials said. India's ranking originally stood at 134 last year, but has been now adjusted to 140 by the Bank to account for fresh data. In the 2014 report, India had 52.78 points and this year it scored 53.97 points. The latest ranking, however, does not take into account a slew of measures taken by the Modi Government to make India a business friendly destination. "We do not want to send the impression that the drop in India's ranking is connected in any way with the current political situation (government)," said Augusto Lopez-Claros, Director, Global Indicators Group, Development Economics of the World Bank Group. "It is absolutely true that the new government of Mr Modi has made it very clear that they see the creation of a better investment climate and a more business friendly environment in India a top priority. However, it is important to remember that the new Government did not come into office until the second half of May," he said. Noting that the cut-off of ease of doing business is May 31st, Lopez said whatever the government would do and whatever is in the pipeline is going to have an impact on these indicators only next year. Appreciative of the steps taken by the new Indian Government, World Bank officials said that there was a very high likelihood of India significantly jumping up the ladder in the next report. Singapore with 88.27 points occupies the top position in the ease of doing business followed by New Zealand, Hong Kong, Denmark and South Korea respectively. Among other major countries, the US has been ranked seventh, Britain (eight), China (90), Sri Lanka (99), Nepal (108), Maldives (116), Bhutan (125), and Pakistan (128). When asked about the ambition of the new Indian Government to move up the ladder and gain a ranking within top 50 countries, Lopez said: "There is no reason, why not?". "Absolutely, it can be done. There are many examples of countries who through focused efforts, through intelligently designed reforms have managed to make very substantial improvement," he said. Though India did drop a little bit in terms of its ranking, the ease of doing business has improved over the last 12 months, he said. Rita Ramalho, lead author of the Doing Business report, said India's ranking dropped, despite improvement in its business environment, because other countries improved. "There is a continuous improvement across the world. India improved, but others improved at a faster pace," Ramalho said.

INDIA BETTER IN PROTECTING MINORITY INVESTORS

While India's rank for 'ease of doing business' has worsened to 142nd position globally, it fares much better in terms of protection of minority investors and credit availability at 7th and 36th places, respectively.
These are the only two categories (out of total ten considered by World Bank Group) where India is ranked among top-50 countries -- a target set by Prime Minister Narendra Modi for the overall ranking.
Meanwhile, the country's spot last year has been revised to 140 after making adjustments and reflect data corrections, whereas it was at 134th position when the rankings were published last year.
Modi, in September, had said that India's ranking could be improved to the 50th position by making government regulations easier.
India is ranked 36th with respect to 'getting credit' category while the country is placed at 7th spot when it comes to 'protecting minority investors'.
In last year's ranking, India was at 28th place in 'getting credit' category and 34th with regard to 'protecting investors'.
"India strengthened minority investor protections by requiring greater disclosure of conflicts of interest by board members, increasing the remedies available in case of prejudicial related party transactions and introducing additional safeguards for shareholders of privately held companies," the report titled 'Doing Business 2015: Going Beyond Efficiency' said.
On ease of getting credit in India, the World Bank report said, "... in India a little over a decade ago, an entrepreneur seeking a loan to grow his business would have had little luck because financial institutions lacked access to information systems to assess creditworthiness.
"Today, thanks to the creation and expansion of a national credit bureau offering credit scores and coverage on par with those in some high-income economies, a small business in India with a good financial history is more likely to get credit and hire more workers," it said.
The report covers 189 countries.
The overall ranking is based on ten factors including 'starting a business' (158th rank), 'dealing with construction permits' (184), 'getting electricity' (137)'registering property' (121), 'enforcing contracts' (186), 'trading across borders' (126), 'paying taxes' (156) and 'resolving insolvency' (137).
In South Asia region, the report said India implemented the "largest number of regulatory reforms in that period (June 2013 to June 2014), with 20, followed by Sri Lanka with 16".
This year, for the first time, the World Bank Group collected data for a second city in economies with a population of more than 100 million. In India, the report has considered both Delhi and Mumbai.

UNEARTHING CAPITAL FLIGHT CAN ADD $30 bn to FOREX KITT

The unearthing of capital flight of "black" money Indians have allegedly stashed away in Swiss banks could add USD 30 billion to the country's forex reserves, says a Bank of America Merrill Lynch report. According to the global financial services major, though there would not be any immediate forex impact given the legal issues involved, it could add USD 30-35 billion to the forex reserves over time. BofA-ML has worked with an estimate of capital flight of about USD 200 billion based on a recent research study. According to the study, Raghbendra Jha and Duc Nguyen Truong, of Australian National University, estimated total capital flight of more than USD 186 billion during 1998-2012. "If even half of this is unearthed, it could add USD 30-35 billion (three to four months of current import cover) to forex reserves over time," BofA-ML said in a research note today. The Centre today placed a list of names of 627 Indian account holders in HSBC bank, Geneva in black money case before the Supreme Court which asked SIT to go through the list and take appropriate action in accordance with law. A bench headed by Chief Justice H L Dattu did not open the sealed envelope containing the names placed by the Centre and said that it would be opened only by the Chairman and Vice-Chairman of the Supreme Court-appointed Special Investigation Team (SIT). It asked the SIT to submit status report of its probe by November-end. Placing the documents before the bench, Attorney General Mukul Rohatgi said details of account holders are of year 2006 which were supplied by the French government to the Centre in 2011. The report further noted that rupee is expected to hold Rs 58-62/USD and BofA-ML's Asia forex strategist, Adarsh Sinha, forecasts INR to be at Rs 61/USD in December.
SENSEX CROSS 27K MARK AGAIN

Indian markets today soared to over five-week highs with Sensex reclaiming 27,000-mark and Nifty inching closer to 8,100-level on the back of gains in metal and auto shares in line with a buoyant global trend ahead of US Federal Reserve's policy meeting outcome. Hectic short-coverings ahead of the expiry of domestic derivatives contract tomorrow also boosted the trading sentiments, brokers said, adding that hopes of further economic reforms, rising rate cut expectations and fall in international oil price also played a positive role. Shares from realty, metal, auto, IT, oil & gas and FMCG sectors were in good demand while some of the shares from pharma and banking segments attracted profit-booking. The BSE 30-share barometer resumed strong but declined to a low of 26,971.16 before bouncing back to settle at over five-week high of 27,098.17, a rise of 217.35 points or 0.81 per cent. Yesterday, Sensex had gained 127.92 points or 0.48 per cent. It has now spurted by 1,196.98 points, or 4.60 per cent, in seven out of last eight sessions. The broad-based 50-issue CNX Nifty of the NSE also flared up by 62.85 points, or 0.78 per cent, to end at 8,090.45. Both indices are at their highest closing peaks since September 22. Smart rise in Infosys, Tata Motors, RIL, ITC, TCS, Tata Steel, Hindalco, M&M, Maruti Suzuki, Sesa Sterlite, Bajaj Auto and Cipla mainly contributed to Sensex rise. "We expect a highly volatile session on Thursday. First, we shall be seeing participants reacting to the Fed meeting outcome in early trade followed by the F&O expiry," said Jayant Manglik, President-retail distribution, Religare Securities. All eyes are now set on the US Federal Reserve's meeting which is expected to end its bond-buying programme but reaffirm its willingness to wait before raising interest rates, experts said. In overseas markets, Asian stocks closed strong on rally on Wall Street yesterday on optimisim about earnings and economic data in the US.

Tuesday, October 28, 2014

INDIAN ONLINE MARKET TO CROSS Rs 88,000 cr

Indian online retail market is estimated to grow over 4-fold to touch USD 14.5 billion (over Rs 88,000 crore) by 2018 on account of rapid expansion of e-commerce in the country. According to research and consultancy firm RNCOS, the online retail market is projected to grow at a compound annual rate of 40-45 per cent during 2014-18. "The Indian online retail market has been striding leaps and bounds over the past few years on account of digital revolution. The trend is expected to continue as the online retail market in India is estimated to touch the mark of USD 14.5 billion by 2018," a report by RNCOS said. The current market size of online retail sector has been pegged at USD 3.5 billion (over Rs 21,000 crore), it added. As per the 'White paper on Indian Online Retail Industry: The War of Clicks', India is among the most swiftly emerging online retail market across Asia-Pacific region although the expanse of e-commerce is at a sprouting stage. "The major reasons for this growth will include the increasing penetration of mobile Internet, higher purchases of smartphones, need for ease of shopping, time convenience and higher mobility," the study paper said. Heavy discounts offered by online portals will also propel the market growth, it added. In terms of product segments, at present electronic gadgets claim the highest share followed by apparel and books. "But it is likely that few years down the line, apparel and accessories will take over the top slot from electronic gadgets. In addition to this, home decor and furnishing will mark an increase in its share," RNCOS said. The research firm said this increase will be primarily on account of growing acceptance of home grown apparel brands of online shopping portals and openness towards buying home decor and furniture online. "Better payment and return policies will further fuel the increase," it added. Some other factors helping the online retail industry seeing good growth include smartphones offering accessibility to online shopping, aspirations of tier II & III cities, women becoming more tech savvy, evolving perception around branded products, impulsive buying and logistical convenience. RNCOS, however, said there are certain challenges which are hindering the industrial growth such as absence of proper Internet connections in many rural areas. Moreover, some consumers are still sceptical about the security of online financial transactions, it added. "Despite these glitches and predicaments, the future of the Indian retail online retail industry looks robust. "There are more and more efforts from government and private players' end to meliorate the facility of logistics, increase the Internet penetration and facilitate better services for the end consumer," the report said.

FALLING OIL PRICES HURTING KUWAIT ECONOMY

Kuwait's ruler warned today that declines in the oil price were damaging the economy of the energy-rich Gulf state, urging lawmakers to "stop squandering resources" and to diversify revenues. "We are witnessing a new cycle of low oil prices as a result of economic and political factors that have hit the global economy and started to negatively impact our national economy," Sheikh Sabah al-Ahmad Al-Sabah said in a speech to open the new parliamentary term. The emir called on the government and parliament to "safeguard our oil and fiscal wealth". "You have the responsibility to stop squandering resources, rationalise spending and direct subsidies to reach those who need it... without impacting the standard of living," he said. He also called for stepping up plans to reduce Kuwait's dependence on oil revenues by diversifying the economy. "I have repeatedly called ... for establishing productive economic activities to create jobs for youth, diversify the resources of income of the country and reduce national economic dependence on oil," he said. Oil prices have lost more than a quarter of their value since June, hitting the state coffers of energy-dependent countries like Kuwait. Oil income accounts for about 94 per cent of Kuwaiti revenues. But the oil-rich emirate has piled up massive fiscal reserves of more than USD 500 billion during the past 15 years due to high oil prices. Earlier this month, Kuwait began reducing public subsidies, estimated at USD 18 billion, on diesel, kerosene and aviation fuel. It is considering similar measures for electricity, water and petrol. Public spending has risen more than three-fold in Kuwait over the past seven years, with the overwhelming majority of the increase going to wages and subsidies. The tiny emirate has a native population of 1.25 million and is also home to about 2.8 million foreigners.

20 KERALITES IN ARABIAN BUSINESS 100 LIST

As many as 20 entrepreneurs and professionals from Kerala have been named in the annual list of 100 powerful Indians in the Gulf countries with people from the southern state also bagging the top two positions. The 'Indian Power List', published by Arabian Business, a leading business magazine, has also picked as many as six Keralites among the top 20. Managing Director of the Lulu Group, Yusuff Ali MA, has retained his top position on the list for the fifth consecutive year, while Ravi Pillai, Chairman of RP Group of Companies, is ranked second for successfully building a global business network that employs over 80,000 people. PNC Menon, Chairman of Sobha Developers is ranked No 8. Sunil John, Chief Executive Officer of ASDA'A Burson-Marsteller, the region's leading Public Relations consultancy, has been ranked at 12th position, followed by KV Shamsudheen, Founder of Pravasi Bandhu Welfare Trust and Sunny Varkey, Founder & Chairman of GEMS Education. The business magazine selected the 100 powerful Indians in the Gulf Cooperation Council (GCC) countries from over 500 entrepreneurs and professionals. "In 1970 trade between India and the UAE was worth USD 80 million a year. By 2013, the figure had reached USD 44 billion. Thanks to the work of these 100 people featuring in this week's issue that number is only heading north," Anil Bhoyrul, Editorial Director of Arabian Business, said.

Monday, October 27, 2014

NIFTY OUTLOOK FOR 27 & REVIEW

CAUTION @ HIGHER LEVELS

Nifty                               7992  -22
Nifty opened higher and traded with negative bias thereafter to close with a loss of about 0.25% and below 8000 mark. However, the short term trend is positive and would become bearish only on a close below 7925.  Nifty spot is expected to encounter resistance at 8030,, 8070 and find support at 7950, 7915 for Tuesday. 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 zigzag movements with alternate bouts of bullishness and bearishness. 

SENSEX RETREAT FROM 6 DAY RALLY


The benchmark Sensex today retreated from one-month highs and fell about 98 points to end at 26,752.90, logging its first drop in six sessions, on losses in bluechips like HUL, Tata Motors and RIL and caution ahead of the US Federal Reserve monetary policy meet. The NSE Nifty fell by about 23 points to end below the key 8,000-level as investors booked profits. Mixed Asian and weak European trends, after tepid German business confidence data, were also among factors that affected sentiments today. Shares of oil firms saw selling after Goldman Sachs slashed 2015 oil price target. Alongwith Oil & Gas, Realty, FMCG and Auto shares suffered the most while Consumer Durables, Capital Goods, Banking and Power ended in the green. The 30-share Sensex resumed firm on initial rise in Asian stocks but failed to cross 27K-mark, logging a high of 26,994.96. Late selling on bearish European opening pulled it down to settle at 26,752.90, recording a fall of 98.15 points or 0.37 per cent. The Sensex had gained 851.71 points, or 3.28 per cent, in the previous five sessions. The broader 50-issue CNX Nifty of the NSE fell back by 22.85 points, or 0.29 pe cent, to end at 7,991.70. The US Federal Open Market Committee will meet tomorrow, October 28, 2014, for two-day monetary policy review, expecting to end a long-running stimulus programme. Domestic investors preferred to book profits and decided to play safe ahead of expiry of derivatives on October 30, 2014, leading to fall in share prices, said brokers. Stocks of FMCG giant, Hindustan Unilever tumbled about 4.75 per cent after it forecast a softer demand environment. Shares of realty giant DLF slumped 7.84 per cent on concerns the company may face probe in Haryana land deals. Bucking the overall trend, stocks of companies involved in defence sector like BEML rallied 5 per cent after projects worth Rs 80,000 crore were cleared by the government. HMT counter surged nearly 20 per cent to touch its highest trading permissible limit for the day amid reports that the company may get another lease of life.
 

MF's EXPOSURE TO BANK STOCKS DECLINES

Mutual fund (MF) managers dropped their exposure in bank stocks to Rs 55,398 crore in September, after raising it for seven consecutive month. According to the latest data available with Securities and Exchange Board of India, MF investments in bank stocks as on September 30 declined to Rs 55,398 crore, accounting for 18.84 per cent of the total equity assets under management (AUMs) of Rs 2.94 lakh crore. In comparison, the MF industry's exposure to banking sector had reached to an all-time of Rs 56,625 crore in August this year. However, MFs had been raising their exposure to banking shares since January.
Software was the second most preferred sector with MFs, last month with an exposure of Rs 31,834 crore, followed by pharma (Rs 21,908 crore), auto (Rs 18,892 crore) and finance (Rs 16,358 crore).
Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. MFs invest in stocks, bonds, money market instruments and similar assets.
According to market participants, MFs have been showing interest in banking stocks since the beginning of the year amid rising equity market and the current decline is mainly due to profit booking.
They believe that the ongoing market rally might see mutual fund assets getting diversified.
This year has seen a consistent growth in investment in banking stocks by equity fund managers and fund infusion has grown from Rs 30,339 crore in January to Rs 56,625 crore in August.
In percentage term, exposure has risen from 16.6 per cent to 20.10 per cent during the period.

Sunday, October 26, 2014

WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

FURTHER UPTREND….!!!
Planetary Position ::  During the current week Moon would be transiting  from Jyeshta in Scorpio to Sravana in Capricorn.
Sun transits in Swathi    in Libra.
Mercury in Direct motion  from 26th October  transits  in Hastha and Chitta   in   Virgo .
Venus transits in  Swathi in Libra.
Mars  transits in   Moola constellation in Sagittarius .  
Saturn transits in Visakha constellation in Libra and in  Gemini Navamsa .  
Jupiter transits in Aslesha constellation in Cancer and in  Aquarius navamsa ..

As opposition between Sun/Venus and Uranus is over, market started recovering and can be expected to continue for this week and November 2nd week can be expected to be quite volatile in view of certain unfavourable aspects.

Nifty Outlook for Next Week :: (27.10.2014 to 31.10.2014) …  

NIFTY :: 8034 (+234) (Bearishness  only below 7950….)
Nifty had taken a U turn after 4 weeks of fall and had gone up by 3% and had gone up all the trading days of the week. Last week before Diwali, sentiment was quite bullish. Nifty appears to have taken support  at 100 DMA and bounced back strongly.  This column has been mentioning about Diesel deregulation, Gas Pricing and Coal block reallocation and incidentally all the issues were addressed during the last week and the sentiment has become upbeat. Further, Budget exercise would pick up momentum and GST rollout, DTC and interest rate cut  would be the next priorities of the Government in the reform process. With the Two State Governments in BJP’s kitty, Centre has become more strong and more aggressive and path breaking reforms could unfold.

Nifty is once again above 50 DMA having taken support from about 100DMA. It is once again above key averages and could be on its way up once again and would become weak only if it closes below 7950.

20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7920, 7940, 7775 and 7135 respectively and would
act as supports / resistances.

Based on the present Government’s agenda, Infra  and Power sectors could come out of their problems
soon . Stocks of promoters with proven record may be preferred in these sectors.
Investors need to accumulate quality stocks while traders need to be ever vigilant
Nifty continues to be above 200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the
long term bullish trend is intact.   Nifty is quoting at a PE of about 20.65, which is about 17% above the long term PE multiple.  Hence, further upside (  8500+ is possible  before next Budget)  
in view of the  stable and performing Government  at the centre as earnings would go up because
of favourable atmosphere .  
Market is usually ahead of fundamentals and fundamentals need to catch up with the present valuations which could take some time .
.
Strong long term support would be around 7150
level and Medium term support is 7700.

Technical Levels ::

For the coming week, Nifty spot is expected to face
resistance at 8105,  8195, 8285 and find support at 7925, 7835, 7750.
Minor resistances may be found at 8070, 8110, 8135, 8175  and minor supports at 7960, 7920, 7895 and 7850.

For short term Nifty is bullish and would become bearish only if it closes below 7950 and could encounter resistance could encounter resistance around 8175 during the week.

Advice for Traders ::
Sentiment improved dramatically on the eve of Diwali and Nifty gained about 3% for the week. 100 DMA had lent strong support for Nifty. As Nifty trading at around higher levels for the week, further uptrend can be expected. In view of derivative expiry, stock specific action is most likely and bullish stocks would become further bullish and bearish stock could become further bearish.  

TATA's PHILONTHROPY EXPLORED

The values at the heart of the Tata Group as well as the role played in its development by the philanthropic trusts that own two-thirds of the company are explored in a new book that is a brief history of the Tatas. How did Tata transform itself from a family-owned venture to the position it is today in an array of unrelated businesses? What is the 'Tata Way', which has earned it much admiration and respect? These are among several aspects that the book "The Greatest Company in the World?: The Story of Tata" by Peter Casey looks into. It charts the contribution of every Tata chairman - from Jamsetji Tata, who set up the company in 1868, to Ratan Tata and Cyrus Mistry in transforming the company into one of the most professionally-managed enterprises in the world. As founder and Executive Chairman of Claddagh Resources, Casey decided to write the book initially to help his recruiters and executive search consultants have a better understanding of Tata Consultancy Services (TCS), which over 14 years, had become his company’s biggest client. "It was supposed to just be a short 15-page summary, but the more I started studying TCS and Tata, the more captivated I got and the project developed a life of its own," he says. According to the writer, while other successful capitalists and captains of industry started companies to create profit and, thereby, wealth, Jamsetji Tata planted the seeds of philanthropic trusts, which now own 66 per cent of the Tata Group. "In harmony with his religion, Tata's company would exist to finance and initiate projects to improve the lives of the people of India," he says. "So, Jamsetji Tata became not only a catalyst for sweeping change in his vast homeland, but, in the process, conceptualised an entirely new way of doing business as well as philanthropy. What he began has changed the lives of billions, as the company he founded continues to work for the betterment of society," he says. In the words of Jamsetji, "We think we started on sound and straightforward business principles, considering the interests of the shareholders our own, and the health and welfare of the employees, the sure foundation of our success." Today, the Tata Group employs nearly half a million people, and earns revenues of USD 100 billion. It reported a profit of USD 6.23 billion in 2011-12, and controls assets valued at USD 77.7 billion. "The philanthropic trusts control a majority of the Tata holding company, Tata Sons. The Tata family is a very small shareholder. Yet, the owners are only one of four stakeholders Tata sets out to serve. In addition to the owners (which include shareholders) are employees, customers, and society itself," the book, published by Penguin, says. "The guiding principle for everyone at Tata is sharing the wealth. With Tata reporting annual profits in 2012 of USD 6.23 billion, this means that a very large amount of money is invested back into the economy every year just from this one source," it says. The members of the Tata family have established a set of philanthropic trusts to which the majority of the family’s personal wealth has been dedicated and bequeathed. Like their father, Dorabji Tata and Ratan Tata also donated the majority of their personal wealth to trusts they established. The book also talks about Jamsetji Tata's successor Dorabji Tata's passion for sports and how he advocated India's participation in the Olympics as early as 1919, much before the nation had established its own Olympic committee.

TARGET 50 IN EASE OF DOING BUSINESS

The government is aiming to improve India's ranking in ease of doing business index to 50th position in the next two years from the current 134th. The Commerce and Industry Ministry has already taken several measures and has proposed series of steps, including drastically reducing the time for registration of business to one day, single registration of all labour laws and cut in number of taxes to improve ease of doing business in India. "Aim is to improve the ranking to 50th position in two years from 134th at present. Different government departments have already started consultation and deliberations on steps to improve India's ranking," sources said. They added that meetings would continue to remove all the barriers and simplify the cumbersome procedures related to approvals and clearance mechanism for business activities. According to a World Bank report, India has slipped three positions to 134th spot in the latest 'ease of doing business' list, which is topped by Singapore. The Department of Industrial Policy and Promotion (DIPP), has identified sectors and specific reforms that are urgently required to substantially improve India's ranking in ease of doing business. The department has listed as many as 46 action points for different central government ministries and state governments for improving the business climate. For Corporate Affairs Ministry, it has suggested that the time taken in registration of business from existing 27 days be reduced to only one day as in Canada and New Zealand. It has also called for doing away with the requirement of company seal and removal of minimum paid up capital for starting a business. It has suggested introduction of Bankruptcy Law, Unified Insolvency Code, speedy constitution of benches under National Company Law Tribunal and fixing of a definite and predictable timeframe for rehabilitation and liquidation process. Similarly, it has recommended reduction in number of taxes and permitting online payment of taxes; simplification of complex tax processes; expediting implementation of Direct Tax Code, Goods and Services tax besides abolition of minimum alternate tax for SEZ developers and units. Further, it has called for a uniform policy and procedure for all states for a single window clearance along with combined application form and single registration for VAT and other state taxes. The DIPP has also proposed timelines to implement these initiatives, aimed at attracting investments as part of the Prime Minister Narendra Modi's 'Make In India' campaign. During the last three years, India received an average of USD 30 billion annual foreign direct investment. India needs huge investments to give a boost to its manufacturing sector and to create million of jobs.

Friday, October 24, 2014

IS SAMVAT 2071 BULLISH ONE...

Indian stock markets are likely to remain bullish during the current Hindu calendar year (Samvat 2071) and investors would continue to reap rich gains, say experts. This year has been euphoric for markets. Apart from the last one month or so, overseas investors have been buying heavily.
"Now that markets have been acquiring higher peaks, we can see retail investors coming back gradually. We are likely to witness a rise in retail flow into the market this year. That will be healthy for the market as so far Indian market is totally dependent on the FII money," said S K Goel, Director, Bonanza Portfolio Ltd.
"Expect the market to remain bullish from this Samvat to the next but volatility is likely to continue. In this rally so far, IT, pharma, auto consumer, banking had been the leaders and we expect these sectors to remain bullish.
"Cement and infra would do well in the coming year considering the fact that Modi government's focus has been on building new cities," he added.
The Sensex gained 5,590.42 points, or 26.37 per cent, in the entire Samvat 2070.
Analysts said that currently we are in a bull-market and stocks will remain as best asset-class in Samvat 2071, provided global markets remain stable.
BJP's win in two state elections (Maharashtra and Haryana) has raised expectations of additional reforms, they said. Experts said markets have given a thumbs up to this win as now the new government would find it much easier to pass reform bills in the Rajya Sabha. "With quick policy decision making and reforms clearances, we expect the new government to maintain and build higher confidence for FII investors," an expert said. With stable macros and policy push by the Modi government Indian markets should be able to continue doing good. Reforms at the Centre are the key for the next leg of rally, say analysts.
"This Samvat year would be positive for markets as macroeconomic data have been positive and there are expectation that slew of reforms would greet investors during this period," said Alex Matthews, Geojit BNP, Research Head.
Some tension at the borders can impact the market if they worsen from where they are today, he added.

Wednesday, October 22, 2014

NANO FOR RENT

Car rental firm Carzonrent and Tata Motors have inked a pact to launch an initiative in the Delhi/NCR region, under which customers would be able to hire a Tata Nano car for self drive at just Rs. 399 per day.
As part of the ‘Myles City Drive’ initiative, Tata Motors would supply 200 Tata Nano Twist cars to Carzonrent fleet for self-drive service in the Delhi/NCR region.
Under the initiative, Delhi-based Carzonrent would also offer the Nano cars to customers on a hourly basis at Rs. 99 and also for a whole month at a rent of Rs. 6,999.
Customers would also be able to book the car online as well as rent directly from the company’s 43 operational centres across the Delhi/NCR region.
Vij said the Myles City-Drive with Nano Twist is aimed at empowering customers and to enjoy everyday life a little more.
Carzonrent, which started Myles (self drive) initiative last year, currently has a fleet of around 600 vehicles under the vertical.
The company currently offers various cars ranging from Mahindra e20 to Mercedes-Benz under the self drive initiative across 16 cities in the country.

EXTERNAL DEBT $346.6 bn IN Q1

The country's international investment position (IIP) has deteriorated during the June quarter as net claims of non-residents rose USD 12.6 billion to USD 346.6 billion following a sharper rise in the value of foreign-owned assets in the country vis-a-vis rise in the value of residents' financial assets abroad. "Net claims of non-residents on the country, as reflected by the net IIP, rose USD 12.6 billion to USD 346.6 billion at the end of the June quarter from the previous quarter," the Reserve Bank has said.
This change in the net position shows a USD 22.9 billion increase in the value of foreign-owned assets in the country vis-à-vis a USD 10.4 billion increase in the value of residents' financial assets abroad, the RBI said.
However, the ratio of the country's international financial assets to international financial liabilities improved to 58.7 per cent in the June quarter from 59.1 per cent in the March quarter.
On an annual basis, the numbers deteriorated much faster as net IIP in June 2013 quarter stood at USD 313.4 billion, an increase of USD33.2 billion. In the September quarter of FY14, net IIP had stood at a USD 302.7 billion while the same was USD 318.8 billion in the December 2013 quarter. Similarly, residents' financial assets abroad, too, rose USD 10.4 billion in Q1 to USD 492.8 billion from USD 482.4 billion in Q4 of FY14. On an annual basis, assets rose by USD 58.3 billion from USD 434.5 billion. This stood at USD 436.7 billion in Q2 of FY14 and at USD 458.9 billion in Q3 of FY14. As per the RBI data, deterioration in net IIP was due to a sharper spike in the value of foreign-owned assets in the country vis-a-vis the increase in the value of residents' financial assets abroad. The net IIP measured as financial assets of residents are claims on non-residents and gold/bullion held as reserve assets less financial liabilities of the residents to non-residents. The IIP shows the value and the composition of the financial assets of residents that are claims on non-residents, and gold/bullion held as reserve assets; and the liabilities of residents to non-residents. On the composition of external financial assets and liabilities, RBI said the reserve assets continued to have the dominant share of 64.2 per cent in the overseas financial assets, followed by direct investment abroad at 26.2 per cent. The share of direct investment stood at 29.8 per cent, portfolio investment at 24.3 per cent, loans at 21.5 per cent, and currency and deposits at 12.7 per cent. The share of non-debt liabilities rose marginally to 46 percent in Q1 from 45.5 per cent in the previous quarter.

SAMVAT FORECAST, 2071 :: 2014- 15

Samvat  2070 has ended the year at a high level of  7996 (up from 6317 last year) recording  a rise of more than 25%. Market had come out of the long term consolidation and appears to be heading for a record bull run. This is mainly because of the change of guard at the centre and a Government of Single party with absolute majority, (first of its kind after 1989). In view of the stable Government, lot of reform measures can be expected which would lead to country’s economic development over long term.
Now, let us analyse what is in store astrologically, for the next Year.

Let us see how the markets can be in the Next Samvat year 2071. On the
basis of Planetary position at the time of Diwali (New year),  and the
transiting planets  during the year the following indications are available
astrologically.

Samvat Year rises in Simha  Lagna with luminaries (Sun and Moon) placed in 3rd and Jupiter in Cancer in the 12th , Saturn in 3rd in Libra and Rahu and Ketu placed in Virgo and Pisces. Mars is placed in Sagittarius in 5th.  However,  Mercury, the lord for Trade and Commerce is exalted and in retrograde position in Virgo.  
 
Infra and Realty push can be expected from last week of December.  November 2014, January, 2015, May 2015 are expected to be quite volatile wherein traders need to be highly cautious. Financial sector reforms / measures might not go through smoothly for some more time. Global cues might not be favourable in general and our market  has to go up based on domestic cues mainly.

Important dates / period to watch in this Year  based on time cycles are 21.12.2013, 10.2.15, 124.15, 5.6.15, 28.6.15, 30.8.15, 19.9.15, 21.10.15;
Sensitive dates based on transit of planets :: 11.8.15, 9.12.14, 8.4.15; 23.12.14, 15.6.15, 18.9.15;
Sensitive dates based on important aspects between slow moving  planets :: 10.11.14; 13.11.14; 15.1.15; 1.2.15; 11.3.15; 15.5.15, 15.7.15, 3.8.15, 26.9.15, 25.7.15,
Technically, Nifty is expected to face  resistance around 8435, 8705, 9150, 9850 and find support around  7555, 7285, 6845, 6130   during the year.

While  global cues, FII inflows and Government  policies including Monetary policy of the central bank , Business environment, Currency fluctuation  are  expected to play pivotal role in shaping the economy and in turn stock market,  forthcoming year will be mainly influenced by Governmental Reform Push , which can be expected to be generally favourable. Fundamentally  too Nifty EPS has gone up from 345 last year to 385. If next year’s rate of growth improves, PE multiple would go up Based on the expected growth, Nifty can be expected to be between 8600 and 9400 based on conservative and optimistic estimates by next Diwali. In view of the proactive Government and the reform push, buying is recommended on every reasonable decline. 


 

SENSEX BIDS GRAND GOOD BYE TO SAMVAT 2070

Samvat year 2070 ended with a bang as Sensex today soared 212 points to finish at one-month high and Nifty jumped 68 points to close just shy of 8,000 mark on optimism festive sales will boost earnings and hopes that Modi government will unleash more economic reforms. The Hindu Samvat year 2070 saw Sensex flaring up by 5,547.87 points or 26.12 per cent, its biggest gain in last five Samvat years. In Samvat year 2065, it had gained 8,813.26 points or 103.57 per cent. Investors in BSE listed stocks gained nearly Rs 25 lakh crore in Samvat year 2070. In a firm but range bound trade today, buying was seen across the board as all 12 BSE sectoral indices closed with gains between 0.06 per cent and 2.97 per cent. Auto, capital goods and pharma counters took the lead in the surge. Second-line stocks also attracted good buying, indicating renewed support from retail investors. "The optimism on the street was mainly due to sustained recovery in the global markets and positive momentum from the reform measures announced by the government recently," said Jayant Manglik, President-retail distribution, Religare Securities. The benchmark S&P BSE Sensex resumed strong with a wide upside gap of over 200 points in line with firm Asian cues. It later moved in a narrow range of over 100 points before ending at one-month high of 26,787.23, logging a rise of 211.58 points or 0.80 per cent. Previously, it had closed at 27,206.74 on September 22, 2014. In straight four sessions, Sensex has gained 787.89 points or 3.03 per cent. The broad-based 50-issue CNX Nifty of the NSE also rallied by 68.15 points, or 0.86 per cent, to end at almost one-month high of 7,995.90. It touched an intra-day high of 8,005.00. "We understand that the consumer buying has been good in the run-up to the festive season leading to buying of select stocks. Capital goods stocks also performed well as they responded to the government actions related to coal block auctions," said Sanjeev Zarbade, Vice President- Private Client Group Research, Kotak Securities. Meanwhile, the provisional data released by the stock exchanges showed Foreign Portfolio Investors (FPIs) bought shares worth a net Rs 32.40 crore yesterday.

OIL @ $ 82.50

Oil prices slipped today after enjoying a recent upturn in line with a global equities rebound, while analysts said investors will now be keeping an eye on the US Federal Reserve's next policy meeting. However, oversupply and lingering concerns about demand in key markets are capping gains and keeping prices at multi-year lows. US benchmark West Texas Intermediate for November delivery eased 31 cents to close at USD 82.50 a barrel. Brent North Sea crude for December fell four cents to USD 86.18. WTI is stuck around levels not seen since mid-2012, while Brent is at a four-year low. Crude sank in line with worldwide markets last week on fears about the strength of the global economy as China, Europe and Japan struggle to kickstart growth. However, bargain-hunting and indications of loose central bank monetary policies for some time have supported a rebound this week, with US stocks surging for three straight sessions. Adding to downward pressure on oil prices is a supply glut from increased output of shale in the United States, and price-cutting by major producers such as Saudi Arabia. Tetsu Emori, fund manager at Astmax Asset Management in Tokyo, told AFP: "The market seems to have factored in the supply-demand gap and is looking for oil's bottom. "It's difficult for traders to move now ahead of the (Fed policy meeting) next week and amid speculation over the European Central Bank, including reports that (it) could expand its easing programme." Reports yesterday said the ECB could expand its bond-buying scheme to include corporate notes as well as covered bonds and asset-backed securities. The Fed will hold its next policy meeting next week, with investors closely watching to see if it will bring an end to its own bond-buying programme and give any hints about its plans for interest rates.

Monday, October 20, 2014

NIFTY OUTLOOK FOR 21 & REVIEW

MIDSESSION BETTER...CLOSING SUBDUED
Nifty                               7879  +99
Nifty opened with an upside gap following reform measures in Energy sector viz., Diesel regulation and Gas Priicng and traded in a narrow range to close with a gain of more than 1%. IT index declined while other inices closed in the green. Nifty would get into short term bullishness if it closes above 7910. Nifty spot is expected to encounter resistance at 7920,, 7955 and find support at 7840, 7800 for Tuesday. 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 be generally better in the midsession and remain subdued towards close.
PRE FESTIVE RALLY
Diwali seems to have come early to Dalal Street as benchmark Sensex today zoomed 321 points, its best single-day gain in over a week, on back of much-awaited fuel reforms and hopes of Modi government going ahead with further economic initiatives after BJP's wins in state polls. Buying in auto, capital goods, banking, refinery and power sector shares lifted markets. Overall, 1,600 counters ended in the green. From 12 BSE sectoral indices, as many as 10 barometers ended up while IT and Teck closed in the red. Positive global cues also bolstered sentiments here. Rupee was last trading at 61.30 levels against US dollar. The 30-share Sensex resumed strong at 26,434.16 on firm Asian cues after positive trends on Wall Street last Friday. It hovered in a positive terrain throughout the day in a range of 26,517.90 and 26,368.94, before ending at 26,429.85 -- a sharp gain of 321.32 points or 1.23 per cent. Last Friday, it has risen by 109.19 points or 0.42 per cent. Today's rise was its best since 390.5-point jump on October 9. The broad-based 50-share CNX Nifty also rose by 99.70 points, or 1.28 per cent, to end at 7,879.40. "Participants were optimistic from the early trade on hopes for additional reforms after Narendra Modi's party won election in one state and emerged as single largest party in the other. Additionally, measures taken by the government in the past two days, like deregulating diesel prices and raising the cost of natural gas also aided the sentiment," said Jayant Manglik, President-retail distribution, Religare Securities. Stocks of state-owned oil marketing companies BPCL, HPCL and Indian Oil hogged the limelight and surged up to 7.38 per cent as diesel deregulation will sharply cut subsidy burden of these companies. Sensex constituents ONGC and GAIL ended in positive terrain with gains up to 5.44 per cent. Tata Motors, Mahindra and Mahindra and Maruti Suzuki were among big gainers in auto space on expectations of higher sales on account of ongoing festive season and hopes diesel deregulation will fuel demand for vehicles. Japanese stocks led a rally in Asian stocks today after after solid US data and earnings reassured investors worried about the health of the world economy. Key benchmark indices in Japan, China, Taiwan, South Korea Hong Kong and Singapore were up 0.42 to 3.98 per cent. European stocks, however, dropped in their afternoon trade on tepid financial results of some bluechips. Key indices in France, Germany and the UK were off by 0.53 per cent to 0.85 per cent.

Sunday, October 19, 2014

WEEKLY ASTRO TECHNICAL GUIDE FOR NIFTY

CLOSE TO STRONG SUPPORT….!!!
Planetary Position ::  During the current week Moon would be transiting  from Pubba  in Leo to Chitta  in Libra.
Sun transits in Chitta   in Libra.
Mercury , in Retrograde motion, transits  in Chitta   in   Virgo  and would be  in retro motion till 25th October.
Venus transits in  Chitta in Libra.
Mars  transits in   Moola constellation in Sagittarius .  
Saturn transits in Visakha constellation in Libra and in  Gemini Navamsa .  
Jupiter transits in Aslesha constellation in Cancer and in  Aquarius navamsa ..

Venus Sun conjunction (generally referred to as Sukra Moudhyam) depresses values and is generally bearish and Mercury retro motion gives scope for dual movement. Statistics / information during Mercury retro period is generally misleading and unreliable. Grand Square involving Uranus and Sun / Venus is complete and should result in lower volatility and put an end to sudden and swift fluctuations.

Nifty Outlook for Next Week :: (20.10.2014 to 23.10.2014) …  
NIFTY :: 7780 (-80) (Bullishness only above 7925….)
Nifty’as Bearishness continued for the Fourth week and is close to strong support level of 7675. Though Nifty closed below 7800 mark, it is close to 100days’ EMA of 7675 and could offer strong support. With WPI inflation under control, RBI could cut the Bank rates and kick start the downward interest cycle. With falling crude oil prices, diesel deregulation is also on cards With improving macro fundamentals, market can be expected to do better over Medium / long term and Nifty is presently in consolidation mode and market is expecting big bang reforms after the formation of Government in Maharasthtra. Budget exercise also appears to have begun with certain changes in finance ministry officials. Favourable macro economic factors such as falling crude oil prices, lower inflation would positively affect corporate earnings with a lag effect. As market had run up ahead of fundamentals, it is presently in consolidation mode. Much awaited correction in IT index has commenced as TCS Q2 results did not meet market expectation. Further, PSU Bank stocks were beaten down disproportionately due to NPA concerns and are in pullback mode. SEBI’s ban on DLF and promoters from accessing capital market had affected Realty sector stocks. Next  Budget should really be path breaking if the present Government  is fully committed to growth and reforms. Coal block allocation cancellation has affected mining  and related activity and could affect GDP too consequentially. Similarly Gas pricing matter too is affecting economic activity . These Two issues need to be sorted out spur economic growth.
Nifty closed the week  below 50 DMA and appears to have taken support around 100 DMA and might consolidate around the present level. Global cues appear to be distinctly weak and could drive down our market. However, Nifty would get out of the bear grip only if it closes above 7925.
20DMA, 50DMA, 100DMA and 200 DMA are placed at about 7940, 7915, 7740 and 7100 respectively and would
act as supports / resistances. Nifty needs to close decisively above 50 DMA to resume short term uptrend.
Based on the present Government’s agenda, Infra  and Power sectors could come out of their problems soon . Stocks of promoters with proven record may be preferred in these sectors.
Investors need to accumulate quality stocks while traders need to be ever vigilant
Nifty continues to be above 200 DMA and 50 DMA too is above 200 DMA (Golden Cross) suggesting that the long term bullish trend is intact.   Nifty is quoting at a PE of about 20.15, which is about 15% above the long term PE multiple.  Hence, further upside (  8500+ is possible  before next Budget)  
in view of the  stable and performing Government  at the centre as earnings would go up becauseof favourable atmosphere .  IF Nifty stays around the present level for the next Six months, trailing PE could come down to less than 19.50 also making a case for another upmove.
Market is usually ahead of fundamentals and fundamentals need to catch up with the present valuations which could take some time .

Strong long term support would be around 7100
level and Medium term support is 7700.

Technical Levels ::
For the coming week, Nifty spot is expected to face
resistance at 7870,  7955, 8050 and find support at 7690, 7605, 7520.
Minor resistances may be found at 7840, 7890, 7920, 7970  and minor supports at 7715, 7665, 7640 and 7590.

For short term Nifty is bearish  with strong support at 7670 and would become bullish on a close above 7925.  

Advice for Traders ::
With weak global cues, Nifty fell for the Fourth week and is close to 100 DMA. It could consolidate between 50DMA and 100 DMA . In view of the correction for Four weeks, and Diwali sentiment , downside appears limited (subject to global cues). However, short term downtrend would get arrested only on a close above 7925. With a long weekend, it could attract profit booking at higher levels too.  

SMART PHONE IMPORTANT PART OF LIFE FOR INDIANS

Tech-savvy Indians have emerged as the most hooked on to gadgets globally with as many as 95 per cent finding their smartphones "critically important" while 75 per cent use their smartphone or tablet to book a hotel, says a survey by leading online travel firm Expedia. "The findings clearly suggest an increasing dependency on the mobile platform. 95 per cent Indian respondents feel that their smartphone is very or of critical importance to their daily life," Vikram Malhi, MD, Asia, Expedia said. He further said that Indians lead in app booking and data roaming plans globally.
"In fact, 75 per cent of Indians who have used their smartphone or tablet to book a hotel have booked a hotel stay using a mobile app (the highest of any country), he said.
The survey highlights the maturation of Indian traveller who is fast moving up the ladder of travel apps and is no longer hooked with conventional modes of bookings, the findigs said.
This survey was conducted from August 25 to September 17, this year among 8,856 employed adults aged 18 years of age and older across 25 countries.
The research further said that India has the second highest number of Google Glass owners at 6 per cent after South Korea at eight per cent.
Google Glass is a type of wearable technology, developed by Google with the mission of producing a mass-market ubiquitous computer.
India, it further said, has the highest number of Smartwatch owners globally, with 18 per cent of them owning/using the device. The survey also says that 85 per cent of Indians currently have and use a laptop--fourth highest in the world after Denmark (89 per cent), Austria (86 per cent ) and Norway (86 per cent), it said. Indians rank second highest in carrying laptops with them on leisure trips (47 per cent ) after UAE (48 per cent), the survey says.
"India ranked fifth in number of people saying they always bring their smartphone with them on leisure trips, with 88 per cent of Indians who have at least one mobile device saying they always travel with their smartphone on leisure trips, and 38 per cent say they always travel with a tablet," it says.

DHANTERAS JOSH IN MARKETS

Top stock exchanges NSE and BSE have decided to extend the trading session for Gold Exchange Traded Funds on Tuesday till 7 PM on account of Dhanteras - a day considered auspicious for buying gold.
Besides, both the bourses have decided to waive off the transactions charges for all trades in gold ETF securities on that day.
In separate notices, NSE and BSE said that they would conduct "an extended live trading session on Tuesday, October 21, 2014" in Gold ETF securities "on the auspicious occasion of Dhanteras".
After the regular market hours from 9:00 AM to 3:40 PM, trading in gold ETFs will resume at 4:30 PM on October 21 and continue till 7 PM, the exchanges said.
The Gold ETFs track the metal's prices and each unit of these securities is generally equivalent to one gram of gold.
It is considered auspicious to buy valuables like gold on occasions like Dhanteras, Diwali and Akshay Tritiya in India.
Returns from Gold ETFs are linked to the domestic price of physical gold but spare the investors from the trouble of buying and keeping the yellow metal in physical form.
Gold ETF of -- Axis Mutual Fund, Birla Sun Life Mutual Fund, Goldman Sachs Mutual Fund, HDFC Mutual Fund, ICICI Prudential Mutual Fund, IDBI Mutual Fund and Kotak Mutual Fund -- are some of the securities that would be available for trading on Tuesday.
BSE and NSE have informed their members that all unmatched pending orders of Gold ETF securities at 3:30 PM would be cancelled and not carried forward to the extended trading session.
"Members would remain logged in to the trading system after the end of post closing session at 4:00 pm and would no need to log in again for the extended trading session at 4:30 pm," BSE said in its notice.
"All trades done on Tuesday, October 21, 2014 during the normal as well as extended trading sessions would be merged and settled on October 27, 2014 as per existing settlement schedule," it added.

Friday, October 17, 2014

HEALTH INSURANCE INDUSTRY TO TOUCH Rs.65,000 CRORES

Insurance companies, both life and non-life, are bullish on their plans of making it big on the health insurance segment, which is one of the fastest growing businesses for them, and have set a target of more than trebling the business to Rs 65,000 crore by FY'20. Health insurance is the fastest growing insurance product for insurers. Last year, the industry did around Rs 18,000 crore and hopes to do Rs 20,000 crore business this fiscal, which should touch Rs 65,000 crore by FY20, General Insurance (PSU) Association chairman G Srinivasan told PTI. State-run New India Assurance, the largest player in the health cover space, has already filed for a new product under health insurance segment with the sectoral regulator Irda.
"We have already filed for a new product under health insurance segment with the Irda and we are waiting for the approval for launch. It's a top-up policy which provides cover beyond a level upto which the cover is being already being provided," Srinivasan, who is also the chairman and managing director of New India Assurance, said. He was speaking on the sidelines of an event organised by the National Insurance Academy in Mumbai. "The customers will be free to pay premium up to Rs 30 lakh a year under the proposed plan. One can have this top-up plan not only in case if one is our customer but those from outside can also buy this product," Srinivasan said. New India did a Rs 3,200-crore business in the health segment last year and this year it is eyeing Rs 3,600 crore. In the first half the company has already achieved Rs 1,800 crore of business, he added.
Private sector general insurer Cholamandalam MS plans to do business of over Rs 200 crore this fiscal in the category. "We are likely to see Rs 210 crore business from health segment, while our total premium may touch Rs 2,100 crore this fiscal," Cholamandalam MS General Insurance managing director SS Gopala Rathnam said, adding the company is looking at increasing the health insurance business to Rs 1,000 crore per annum over the next four years from now. For Tata AIG General Insurance, the focus is on group insurance. "Even though our focus continues to be on individual health insurance, we will go for group cover if we are able to get the right premium," Tata AIG General Insurance chief executive officer K K Mishra said.
Reliance General Insurance is more focused on retail health insurance. "One fourth of our business comes from health insurance segment. Our focus will continue to be on retail health insurance," Reliance General Insurance chief executive Rakesh Jain said. Even life insurers are also there in the space and there is a clear-cut demarcation now. Health insurance products having maturity period of up to three years are being sold by general insurers, while life insurers are selling longer term products, Srinivasan said.
The health insurance market has emerged as a significant component of non-life insurance sector and experiences a significant growth because of huge potential of the market coupled with new products efficiency which insurance players are bringing in," Insurance Brokers Association president Sohanlal Kadel said.

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