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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 by 12.90 points or 0.21 pct to end at 6,304.00. It has risen by 398.90 points or 6.76 per cent for the year 2013.
The rise in investor wealth was also due to continued rise in listed firms. At present, the total number of listed companies stands at 5,295. Market experts attributed rise in investor wealth to robust FII inflows and hopes of wider reforms after the 2014 Lok Sabha elections helped to overcome concerns over slowing economic growth and high inflation. "This year turned out to be quite constructive for Indian equity. Markets made fresh life time highs on the back of improving domestic macros, supportive global equity and expected governance improvement in India after next general elections. "Sensex crossed the level of 21,200 after a gap of almost six years. FII reaffirmed their commitment towards Indian equities with more than USD 20 billion invested in 2013," said Varun Goel, Head PMS, Karvy Stock Broking. IT, pharma, FMCG, auto and oil&gas sector registered sharp to moderate gains while realty, consumer durable, power, metal, capital goods and banking posted losses this year. In the stock market TCS continued to remain the most valued firm as its market valuation stands at Rs 4,25,230 crore. TCS is followed by RIL, ITC, ONGC and Infosys. Meanwhile, reflecting their bullish stance, foreign institutional investors (FIIs) have picked up shares worth Rs 1,13,135.70 crore (USD 20,101.50 million) in the current calender year till December 30 as per Sebi data.

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 support.
"In 2014, we expect more brands to recognise that digital is not a channel that is fitted into existing thinking, it needs a new way of thinking. Marketers are expected to invest more in data capabilities to understand the performance of their digital campaigns," SapientNitro Co-Global Deliver Lead and Sapient India MD Rajdeep Endow said.
However, the ever increasing rhetoric around surveillance and snooping of Internet, which left its indelible mark on companies and users, in 2013 forced tech firms like Facebook, Twitter, Google, Yahoo and LinkedIn to beef up encryption to secure users' data.
The issue of cyber snooping, thanks to Edward Snowden's revelations of surveillance of Internet users by governments, led to worldwide criticism and protests forcing tech firms to secure their web traffic in a bid to reassure their users.
It was a big year for social media, which saw Twitter going public, Snapchat rejecting a USD 3 billion offer from Facebook and hockey-stick type growth curve of messaging apps like Whatsapp and Line pushing advertisers to reach their target audiences via social networks on mobile devices. 
Social media watchers expect 2014 to be action-packed as everyone from the common man to politicians to brands work on making their social presence bigger and more effective.
Business communications trends that one is likely to see in 2014 will be the focus on grabbing consumer attention and use of mobile and predictive tools.
The new year will be about effective understanding and then reaching out to the more defined audience.
Analysts expect social platforms to help brands in classifying users based on their consumption patterns and then creating new revenue models in the process.
Advertisers are already making ads for the social media audience.
Increased use of mobile phones to access the Internet and make financial transactions is also another interesting trend.
"Customers today are more comfortable with transacting not just online but also through their mobile phones. This year, we have seen a huge traction of not just viewing traffic but also purchases happening through mobile phones on our platform," Snapdeal CEO Kunal Bahl said.
Mobile phones account for about 40 per cent of the time spent on social media, which includes Facebook, Twitter and so on. Given the exponential growth of mobile devices, it is expected to rise further. 

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 writing/scribbling anything on them.

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 further into the quagmire and key parameters showing no signs of bottoming out. Growth rate during April-September slipped to 4.6 per cent from 5.3 per cent in the same period last fiscal, and it is doubtful that the full financial year would show an uptrend. Finance Minister P Chidambaram as well as Reserve Bank Governor Raghuram Rajan tirelessly, yet unconvincingly, tried to assure the industry and the people that the growth rate in 2013-14 would be above 5 per cent or would not fall below the decade's lowest level witnessed last fiscal. On the other hand, institutions such as the International Monetary Fund, the World Bank and the Asian Development came out with estimates of the country's growth, but none projected over 5 per cent expansion rate during the current fiscal. In a recent forecast, IMF lowered the growth projection to 3.75 per cent in 2013 from 5.7 per cent estimated earlier. It, however, forecast about 5 per cent in 2014. Similarly, ADB lowered India's growth forecast for 2013-14 to 4.7 per cent from 6 per cent earlier. Like IMF, it too expects some improvement in the next fiscal and has projected a growth of 5.7 per cent. Other organisations have forecast a similar trend. 
Prime Minister's Economic Advisory Council (PMEAC) had lowered the growth forecast to 5.3 per cent from 6.4 per cent. RBI had lowered the growth projection for 2013-14 to 5.5 per cent from its earlier estimate of 5.7 per cent. Besides trying to prop up growth, the economic managers struggled hard to tame inflation but failed despite best intentions and persistent efforts. Inflation remained above the comfort level of the RBI and also the government, mainly on account of rising prices of essential food items, causing hardship to the common man. Repeated assurances that inflation would come down provided cold comfort to people who continued to reel under high prices. As per the latest data, the Wholesale Price Index (WPI)- based inflation soared to 14-month high of 7.52 per cent in November, pushed mainly by rising prices of vegetables, particularly potato and onion. The retail inflation, measured by movement in the Consumer Price Index (CPI) jumped to 11.24 per cent during the month. There was a time when onion in certain market was sold at an exorbitant price of Rs 100 a kg. The palpable resentment against Congress-led UPA government for its failure to check rising prices found its reflection in the recently concluded assembly elections, which had been dubbed as semi-finals before the general elections early next year. The Congress lost power in Rajasthan and Delhi and did badly in Madhya Pradesh and Chhattisgarh. The declining value of the rupee and widening CAD were the other challenges the country faced this year. The domestic currency started depreciating after the US Federal Reserve announced in June that it could gradually cut down the bond purchases with the improvement in the outlook. The announcement sent the global stock and currency markets in a tizzy. India was not left untouched. The rupee dipped to a historic low of 68.85 to a dollar in August. The BSE Sensex too bore the brunt. However, the efforts of the Finance Ministry as well as RBI, especially the new Governor Rajan, bore fruits and the rupee stabilised. The domestic currency has improved to around 62 to a dollar, while the BSE Sensex is trading above 21,000-mark.
CAD - which is the difference between the inflow and outflow of foreign currency - touched an all-time high of USD 88.2 billion or 4.8 per cent of the GDP in 2013-14. Besides other things, high CAD had fuelled speculation in the domestic currency in the overseas markets. The government tried to control the deficit by checking gold imports and promoting India as an investment destination. RBI supplemented the efforts by imposing restrictions and laying down stiff conditions for gold imports. The initiatives yielded results, though there was a spurt in smuggling of gold on account of higher duties. The government significantly relaxed the Foreign Direct Investment guidelines and raised the limits of overseas investment in financial markets. Although these steps did not provide immediate results, India did receive investment proposals from global companies like Tesco, Etithad, Singapore Airlines and AirAsia. RBI on its part permitted banks to raise FCNR(B) deposits from abroad on liberal terms. The banks were also encouraged to raise funds in overseas markets. It also asked the oil marketing companies to purchase foreign exchange through off market deals for imports. These developments had a salutary impact on the exchange rate, which stabilised to the satisfaction of the Finance Ministry and the RBI. RBI, however, wants the restrictions and extra-ordinary measures taken by the government and the central bank to go, so that the real stability could be achieved in the exchange rate. RBI has specifically pleaded for removal of restrictions on gold import to discourage smuggling, a proposal which did not find favour with the Finance Ministry. 
The better part of the economic management during 2013 was the repeated assertion of Chidambaram that he would go the whole hog to retain the fiscal deficit to 4.8 per cent of the GDP in 2013-14 fiscal. On several occasions he said that he had drawn a red line that would not be breached and the effort would be to bring down the fiscal deficit to 3 per cent by 2016-17. Achieving tight fiscal deficit target in an election year is a difficult call in view of the fact that it would mean pruning plan expenditure by as much as Rs 1 lakh crore. However, going by the Finance Minister's commitment, it appears that the fiscal deficit would be close to the target. Another big effort undertaken by the government to improve investment and growth was setting up of the Cabinet Committee on Investment to clear mega projects which were held up for some reason or the other. The CCI statistics is quite impressive as it has given green signal to over 280 held-up projects envisaging investment of Rs 5.5 lakh crore and many more were in the offing. However, the results of these initiatives will take time and fruits would be reaped by the new government which would be formed after the general elections next year.   

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 Ministry’s proposal to relax FDI norms as it felt that these steps, once implemented, will help revive the global investors interest in a sluggish property market. The year also saw some some big-ticket deals. Mumbai- based Lodha Developers acquired iconic Macdonald House in central London for over 300 million pounds (over Rs 3,000 crore). Realty major DLF sold its wind turbine projects in Gujarat, Rajasthan, Karnataka and Tamil Nadu in phases for about Rs 800 crore. It also exited from insurance venture by selling 74 per cent stake in the joint venture DLF Pramerica Life Insurance to DHFL for an estimated Rs 250-300 crore. "It was one of the worst years in last two decades not only because of slowdown, but weakness of governance at all level from central to state to corporation levels," CREDAI, the apex realtors' body, Chairman Lalit Kumar Jain told PTI. Noting that market improved during December, Jain said: "2014 would be year of revival. Revival has started, the visible change would be seen from second half".
While reviewing yearly performance, property consultant Jones Lang LaSalle India said: "Over the last four years (from the trough of Q2-2009 up to Q3-2013), taking into account the period of economic slowdown, apartment prices have risen by over 50 per cent on an average across India. "As a result, absorption remained subdued during 2013 (until Q3, 2013), falling further from the already tepid levels observed during the same period last year". 
Poor housing demand meant that developers had to sit on a huge unsold stocks and postpone new supply, as reflected in 12 per cent drop in launch of new projects during 2013. Still average housing prices rose by 10 per cent across India. With investors shying away from the housing market, it was a buyer’s market this year but they largely chose to wait and watch for prices to correct and interest rates to ease. By end of the year, both did not happen. While developers kept holding on to their prices citing rising input costs, the Reserve Bank of India did not get enough elbow room to reduce interest rates because of high inflation. Developers’ strategy to focus on execution of the existing projects and selling the non-core assets to improve cash-flows continued even during 2013. Demand slowdown was not limited to housing. Leasing of commercial spaces remained muted as corporates were cautious in expansion amid weak global economic conditions. According to Cushman & Wakefield, the net office absorption fell by 25 per cent in 2013 to 23 million sq ft in eight major cities. Office space supply also declined by 14 per cent to 34 million sq ft. Attractive valuation of rental-yielding commercial assets did provide a golden opportunity for private equity players whose investments in the realty sector grew by 26 per cent to Rs 4,716 crore in the first nine months of this year. Government did try its bit to improve the market. In the beginning of this year, tax sops were offered in Budget to boost demand for affordable housing, but luxury homes were made expensive to compensate. An additional interest deduction of Rs 1 lakh to first home buyers for loan up to Rs 25 lakh was announced. Not only that a Rs 2,000 crore Urban Housing Fund was set up, the outlay for Rural Housing Fund was increased to reduce housing shortage estimated at about 19 million units. On the flip side, a TDS of 1 per cent was levied on the value of the transfer of immovable property valued over Rs 50 lakh.
During second half, new land acquisition law was passed in Parliament. It stipulates consent of at least 70 per cent for acquiring land for public-private-partnership projects and 80 per cent for acquiring land for private companies. Amid buyers’ complaints of delay in project completion, government also introduced the Real Estate (Regulation and Development) Bill 2013 that seeks to protect consumers from fly-by-night operators and unfair practice.
Developers were up in arms against this proposed law saying that Regulatory Bill does not cover all stakeholders involved in the real estate development like the government authorities, which gives projects approval. Ministry for Housing and Urban Poverty Alleviation tried to convince builders that the Bill is not anti-industry but to no avail. Finally, the Centre assured that the Bill would be suitably modified if necessary.  

REALTY NPA'S UP FOR SALE

Indicating the worsening stress on the realty sector, an estimated Rs 7,700 crore worth of commercial and residential properties loans are up for sale, according to an industry report. Data compiled by NPAsource.com, a portal that focuses on resolution of stressed assets, shows that there are around 2,200 units in the commercial category and nearly 11,000 units in the residential segment funded by banks and other financial institutions and valued at over Rs 7,700 crore, which have turned NPAs and are on the block. The portal has NPA data of properties worth around Rs 27,500 crore spread across 27,626 units. Out of this, commercial NPA properties have a 15 per cent share in value term, while residential properties constitute 13 per cent. The lion's share of bad assets come from the industrial land and building category constituting over 65 per cent share in value terms, the portal said. Portal Chairman D K Jain said Maharashtra, largely due to Mumbai, tops both the commercial and residential categories with Rs 842 crore and Rs 838 crore worth NPAs, respectively. Delhi follows with Rs 686 crore worth of commercial NPAs and Rs 500 crore worth of residential NPAs. Andhra is at number three in residential properties with Rs 497 crore worth of NPAs up for sale under. Tamil Nadu, Bengal and UP are the next three states with highest value of commercial and residential NPA properties, he said. Though Mumbai leads the space in realty NPAs, Delhi leads on the single-NPA front, with a New Delhi office property, valued at Rs 200 crore at the base price turning bad and followed by a farm-house in the Capital with a base value of Rs 40 crore. Against this, the priciest two Mumbai properties pale in value with a base price value of Rs 26.5 crore and Rs 24.6 crore, respectively, said Jain. "As NPAs in the corporate sector continue to grow, there will be more commercial and residential properties coming up for auction. The slowdown in realty markets has further added to the woes of the lenders who will not be able to generate higher returns by selling these mortgaged properties," said Jain.  
According to the half-yearly financial stability report of the RBI released yesterday, the gross NPAs in the system is set to rise to 4.6 per cent by September 2014 from 4.2 per cent in September 2013 or about Rs 2.29 trillion from Rs 1.67 trillion a year earlier. The amount of recast loans touched an all-time high of Rs 4 trillion or 10.2 per cent of the overall advances. The report also warned that in case the economic conditions deteriorate, the same number will be at the 7 per cent mark by March 2015. The state-run banks will be the worst affected, the FSR said, pegging the GNPAs for public sector banks to touch 4.9 per cent by March 2015, while the same for new private sector banks will be 2.7 per cent. If the restructured assets are added, the total stressed advances ratio rose to 10.2 per cent in September 2013 from the 9.2 per cent in March 2013, the RBI said. The report said though agriculture accounted for the highest GNPAs at 5.5 per cent as of the quarter to September 2013, it is the industry with a GNPA of 4.9 per cent and 10.9 per cent of restructured which is the main culprit. 

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 (up from 5900 to 6300). 34 of Nifty stocks ended in the green and broader market too was marginally positive with Advance Decline ratio at 1.25 :1. Energy, Infra, Media, Realty indices gained while Metal index remained subdued. BHEL, Maruti, Jindal Steel, M&M and Tata Steel closed in the red while IDFC, JP Associates, Tata Power, Ultra Cement, HCL Tech remained major gainers among Nifty stocks.

Among F&O stocks,  IDEA, Adani Enterprises, Adani Power, HDIL, Zee         remained  major losers with additional Open Interest indicating fresh short positions   while REC, PFC, Century Textiles, Dish TV remained gainers with additional Open Interest indicating fresh long positions.

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @sastry.saaketa@gmail.com

 09848014561

MARKET ENDS FLAT..BUT ON POSITIVE NOTE

The Sensex today inched up by nearly 28 points to end at 21,170.68 in the last trading session of the year, which saw the benchmark notching up its second annual rise in a row. Selective buying amid a firming global trend helped the BSE bluechip index end 2013 with nearly 9 per cent gain during a year where investor confidence recovered. In 2012, the Sensex had jumped nearly 26 per cent. After a better start today, the 30-share closed higher by 27.67 points, or 0.13 per cent, at 21,170.68 led by stocks of power, refinery and healthcare sectors. RIL, TCS and L&T helped lift Sensex. Tata Power and Wipro were among the biggest gainers in 17 constituents that rose. Across market, investors were richer by over Rs 1 lakh crore with market capitalisation ending at Rs 70.4 lakh crore. The broad-based National Stock Exchange index Nifty rose by 12.90 points, or 0.21 per cent, to end at 6,304, after touching the day's high of 6,317.30. For the full year, Nifty gained 6.75 per cent. Also, SX40 index of MCX Stock Exchange ended 29.99 points higher at 12,582.69. Brokers said while trading was lacklustre, the market remained in positive terrain as investors picked fundamentally strong stocks. Sentiment improved further on a firming trend in the Asian region and higher opening in Europe before American consumer confidence and housing data, they added. Sectorally, the BSE Power sector index gained the most by 0.60 per cent, followed by Oil & Gas index (0.52 per cent), Healthcare index (0.21 per cent) and Capital Goods index ( 0.21 per cent). 

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 sanction. Interest will be charged to the account at monthly but will become due for payment along with principal only at the maturity, it said. Banks will recognise interest income on such loans in their profit and loss account only on collection, RBI added. Banks should prescribe a minimum margin to be maintained in case of such loans and accordingly, fix the loan limit taking into account the market value of the security (gold ornaments), expected price fluctuations, interest that will accrue during the tenure of the loan etc, it said. It further said, the account would be classified as non-performing asset (sub-standard category) even before the due date of repayment, if the prescribed margin is not maintained.

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 much. He had two IQ tests and they said it put him on a par with Albert Einstein and Bill Gates," said his mother. The Year 9 pupil of King Edward VI School in the Edgbaston area of Birmingham also enjoys playing chess. He has entered countless tournaments as a member of the English Chess Federation and even received a certificate of excellence at Gold Level for his performance. "I can confirm Niraj Kumar scored 160 on the Cattell III B IQ test, which makes him eligible to join Mensa," a spokesperson for Mensa said.

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 December 23 for the US Embassy to furnish details of Indian staff employed along with the salaries in each case. It is understood that the US Embassy has cited Christmas and New Year holidays as the reason for the delay. India's demand was made in the wake of the arrest and strip-search of its Deputy Consul General in New York Devyani Khobragade on December 12 on the charges of underpaying her maid. Meanwhile, the special group, set up by the Foreign Secretary, met here for the first time to scrutinise the available information regarding the wages being paid to their Indian staff amid indications that these may be violative of the laws. The Group will now hold regular meetings. The government's reaction to set up the special group, comprising inter-divisional experts, including from legal, financial and human resources departments of MEA, to assess and monitor the inputs sought by the governments came after the arrest of Khobragade, the 39-year-old 1999-batch IFS officer. The diplomat's arrest and subsequent treatment had sparked an outrage in India which demanded an apology and dropping of all charges against her. With India deciding to enforce strict reciprocity about the privileges enjoyed by American diplomats posted in the country, the government has withdrawn extra privileges enjoyed by American Ambassador Nancy Powell and other diplomats such as special access at Indian airports. 

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 was flat  with Advance Decline ratio placed at around  1:1. Metal, Media and FMCG indices gained while Realty, PSU Bank, IT, Auto and Infra indices declined. BHEL, Coal India, HDFC, Reliance, Hind Unilever remained major gainers among Nifty stocks while DLF, ACC, Ranbaxy, JP Associates, Ultra Cement were the major losers.

Among F&O stocks,  Colpal, Ashok Leyland, Mc Leo Russel, Godrej Industries, BHEL         remained  major gainers  while India Cement, DLF, Adani Enterprises, REC , FRL       closed in the negative.  

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @sastry.saaketa@gmail.com

09848014561

 

SENSEX DOWN 52 POINTS

The benchmark Sensex fell for the first time in three days today, slipping 51 points amid profit booking and caution after the Reserve Bank of India said any political instability after next year's general election would further hurt the economy. Realty, IT and bank stocks led eight of the 12 BSE sectoral indices lower. Infosys and ICICI Bank were the biggest drag on the index. Bajaj Auto and Mahindra & Mahindra were among the major Sensex losers. BHEL and Coal India led the 14 index gainers and Sesa Sterlite firmed up after it was allowed to resume mining operations in Karnataka after two years. RBI Governor Raghuram Rajan, in his foreword to the eighth edition of the RBI's Financial Stability Report 2013 released this morning, said any political instability will lead to a further erosion of investor confidence in the economy and that a stable new government would be desirable. The S&P BSE Sensex opened higher and rose to 21,304.70 on initial support on the back of foreign capital inflows and firm Asian cues. However, it declined to 21,089.21 before ending at 21,143.01, a loss of 50.57 points or 0.24 per cent. It had gained 160.87 points in the previous two sessions. The CNX Nifty on the National Stock Exchange fell 22.70 points, or 0.36 per cent, to 6,291.10. The SX40 on the MCX Stock Exchange slid 41.89 points to 12,552.70. The RBI said the country is ready for the US Federal Reserve's tapering and pegged India's current account deficit at less than 3 per cent for this financial year. Rate-sensitive stocks were down after Rajan said high inflation is limiting the central bank's ability to boost growth with an accommodative monetary policy. Foreign institutional investors bought shares worth a net Rs 295.76 crore last Friday, according to provisional data from the stock exchanges.

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 6^th March 2014)  in Gemini and presently   in Aries Navamsa .  Venus transits in  Uttarashadha  constellations in   Capricorn sign and in retrograde motion till 1^st February 2014.Further, there is a Grand Square / T square operating  involving Mars and Outer planets till 1^st 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 expected.

Nifty Outlook for Next Week :: 30.12.2013 to 03.01.2014 (Scrip Specific Movements )…  

 NIFTY :: 6314(+40)  

Nifty closed with a gain of more than 0.50%, Second successive weekly gain. Last week’s movement was quite subdued and Nifty moved in a very narrow range of about 70 points only. However, movement was more scrip specifc and mid cap stocks performed better. Last week’s subdued movement in front line stocks and index could  be due to possible absence / lower participation from FIIs due to Christmas / New year holidays.  Short term continues to remain neutral with upside bias and closer to upper end of the range ie., 6325.  While Medium and Long term is bullish, short term trend has been oscillating ..  Market is hoping for a performing Government in next elections and is factoring in the bullish sentiment. Hence, it all depends on Election outcome for real direction to the market. However, cautious bullishness prevails in the present market. Hence, any decent correction in view of the short term bad news is an opportunity for long term / medium term investors to buy quality stocks. Further, Q3 results season too would be starting from Second week of January and scrip / sector specific movement would be in focus. While Nifty made a new high for statistical purpose, it would be in place in spirit only when it maintains above the previous high. Further, Nifty has been trading in a range of 4600 to 6300 for more than 4 years and is due for a  powerful breakout sooner than later.  Stock market discounts future in advance and is ahead of economy and fundamentals atleast by Six months. and medium term bullish sign in markets presupposes improving fundamentals.   Nifty has been making higher bottoms and can be expected to breakout and make higher tops. “Buy on Decline” may be followed for Medium / long term. Traders should be ever vigilant to track short term movements . Technically, Nifty is in a narrow range and major support at 6125 and resistance at 6325 and unless either of these levels is broken decisively, it can be considered to be in neutral range Nifty is  above 200  DMA  and 50 DMA and the  50DMa also has crossed  200DMA and makes a clear case of “Buy on Decline” with 200 DMA as stop loss.  .Any decent correction is an opportunity for medium / long term investors and  it is a clear case of “Buy on Decline”  long as it holds above 200 DMA, which is presently placed around 5900. Being first week of new derivative series, optimism can be expected and a reasonable weekly rise appears possible.

For the coming week, Nifty spot is expected to face resistance at
6395,  6475, 6555 and find support at 6235, 6155, 6080.

Nifty spot has strong  support at 6130 and resistance at 6325. Nifty needs to decisively close above 6325 for a couple of days to sustain the momentum. However, there would be a strong resistance around the recent high of 6415 too. Further, there is strong support around 6250 and 6125..

Advice for Traders :: Being first week of new derivative series, further uptrend can be expected during the week with stiff resistance around previous high of 6415. Hence buying with Friday’s low level as stop loss for a target of 6400+ can be attempted by traders.

WD Gann’s
natural numbers which would act as natural support and resistance are
, : 5968, 6046, 6124, 6202 ,6281, 6361, 6441,6487 during the week.

 

 Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @sastry.saaketa@gmail.com

09848014561

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 thirty' after 5, 10 and 15 years.
In the 2013 league table, India is at the 11th place with a GDP of USD 1,758 (RPT 1,758) billion, and by 2018 the country is likely to be at the 9th place with a GDP of USD 2,481 billion, and by 2023 it would be at 4th place, with GDP size of USD 4,124 billion, and it will claim 3rd spot with GDP of USD 6,560 billion by 2028, it said. The 2013 league table shows only two changes in the list of top 20 economies. Firstly, Russia overtook recession- stricken Italy to gain 8th place and Canada overtook India as a result of the collapse of the rupee to retake its position as the second largest economy in the Commonwealth and the 10th largest economy in the world, the report said. By the year 2018, the emerging economies will be "on the move". Russia would be at the 6th place; India 9th, Mexico 12th, Korea 13th and Turkey 17th, it said.
By 2023, India and Brazil would be "on the march" and are likely to claim the 4th and 5th place, respectively.
By the year 2028, the league table will be reordered. China will move to the number one place, followed by the United States (2nd), India (3rd), Mexico (9th) and Canada (10th).
The report further said China's GDP in dollar terms is likely to overtake the US in 2028 – much later than most previous predictions.Meanwhile, the United Kingdom would overtake Germany to become the largest Western European economy 'around 2030', it added. 

Britain to become Europe's biggest economy by 2030

Britain will surpass France and Germany to become Europe's biggest economy by 2030, according to a study. British research group the Centre for Economics and Business Research (CEBR) predicts that Britain's output will outstrip France's by 2018 before displacing Germany by around 2030. But it will be overtaken by India and Brazil over the same time period, said the study released yesterday. "Germany is forecast to lose its position as the largest Western European economy to the UK around 2030 because of the UK's faster population growth and lesser dependence on the other European economies," the report said. "If the euro were to break up, Germany's outlook would be much better," it added. "A Deutsche Mark-based Germany certainly would not be overtaken by the UK for many years if ever." The think tank's chief executive claimed that Britain's economy would grow even faster if it left the European Union. "My instinct is that in the short term, the impact of leaving the EU would undoubtedly be negative," Douglas McWilliams told the Daily Telegraph. "My suspicion is that over a 15-year period, it would probably be positive."  

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), Haryana (11.2 per cent), Karnataka (11.1 per cent), Uttar Pradesh (9.8 per cent) and Andhra Pradesh (9.6 per cent), the study said. Jharkhand, Haryana, Gujarat, Madhya Pradesh and Andhra Pradesh witnessed maximum decline in investment inflows in realty sector during the year-long period between September 2012 and September 2013. However, Bihar, Jammu and Kashmir, Assam, Orissa and Uttar Pradesh recorded a surge in investments attracted by realty sector. To ascertain as to what 2014 holds for realty sector, Assocham took responses from about 1,000 developers, real estate brokers and agents, property consultants and senior officials of various firms in domain. This was done for 10 prominent cities of Ahmedabad, Bangalore, Bhopal, Chennai, Delhi, Hyderabad, Jaipur, Kolkata, Lucknow and Mumbai. The responses indicated that there will be no respite for India's real estate sector at least during the first half of the calendar year 2014. "The situation on real estate front is not likely to improve much owing to an uncertain political scenario at least during the first six months due to forthcoming general elections and poor investor, end-user confidence due to sluggish economic growth coupled with continued high property prices," Assocham said, adding that these reflected views of 60 per cent of respondents Consequently, the overall performance of India's real estate sector in the year 2014 is likely to remain subdued as people shall refrain from buying property and developers will continue to grapple with high debt, rising construction costs and unsold inventory, the study said. Suggestions to revive the sagging real estate sector included putting in place a single window clearance system, evolving a rational structure on payment of stamp duties for sale and purchase of land and properties. Revision in limit of interest deduction on housing loan of Rs 1.5 lakh introduced by Finance Act 2001 to Rs five lakh and permitting more foreign direct investment (FDI) in the realty sector are also among the recommendations.

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 sentiment. The Dow Jones Industrial Average and the Nasdaq Composite Index logged all-time closing highs. Infosys touched a lifetime high as IT counters attracted heavy buying after US jobless data showed a fall last week, raising hopes of an economic revival. The US is the biggest market for Indian IT companies. TCS, India's No. 1 software exporter, was the biggest gainer on the Sensex, rising 2.98 per cent. Infosys and Wipro climbed 1.41 per cent and 1.89 per cent, respectively. "IT stocks were performing well post positive jobless data from US, which is also indicator of improved health of economy in US, which will be beneficial for the sector," said Rakesh Goyal, Senior Vice President at Bonanza Portfolio Ltd. A strong recovery in the rupee also helped. The rupee traded at 61.87 in late afternoon deals against yesterday's close of 62.16. The Sensex has advanced more than 9 per cent this year, poised for its second annual gain, as overseas investors pumped in almost USD 20 billion in the stock markets. Foreign institutional investors bought a net Rs 743.70 crore of shares yesterday, according to provisional data on the stock exchanges.

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 Trade Centre.A new law known as Check 21 was passed, to enable banks to process cheques electronically, rather than having to transport paper versions across the country.
The UK government believes a change in the law would also promote the continuing use of cheques.The UK Payments Council was originally planning to abolish all cheque payments by 2018, but was forced to change its mind after public opposition.
"We want to see more innovation so that customers see the benefits of new technologies," said Sajid Javid, the financial secretary to the Treasury.
"We want cheques to have a crucial role in the ongoing success of the UK," he added.
In 2012, 10 per cent of all payments by individuals were made by cheque, and 25 per cent of payments by businesses.
The industry says most younger account-holders already use electronic systems of payment, and rarely use cheques.
However all customers will still be able to pay in cheques by posting them to their bank, or by visiting their bank directly, the report said.
Barclays is planning to launch a pilot programme for paying in cheques via phone from April 2014.
It hopes to launch a service for all its customers later in the year.
"I think people are going into branches less and less, particularly as a result of mobile banking, and that's going to accelerate the process," Jenkins said.

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 of retail space is now recognised and accepted by almost all major mall developers," JLL Managing Director (retail services) Pankaj Renjhen said.
"In the coming years, average size of malls is likely to increase as developers are focusing on project sizes that allow for a critical mass in terms of offering various formats and categories under one roof," Renjhen said. According to the report, next year the average size is estimated to be around 3,80,000 square feet, which is expected to increase to 4,70,000 square feet in 2015 and further to 6,60,000 square feet in 2017.

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 or a public sector undertaking. Documents for address proof include, electricity bill, landline telephone or broadband connection bill, consumer gas connection card or book or piped gas bill, bank account statement, passport of applicant or even spouse, among others.
Recently, the Reserve Bank of India had also notified that Aadhaar Card is a valid proof for opening of a bank account under the Know Your Customer (KYC) scheme.

UNIVERSAL KYC FOR ALL MARKETS

SEBI ISSUES FRESH GUIDELINES

Moving 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 depositories are eligible able to act as KRA. Earlier, the Sebi prescribed a Standard Account Opening Form (AOF) which has been divided in two parts, first part contains the basic KYC details of the investor used by all Sebi registered intermediaries. While, the second part captures additional information specific to the area of activity of the intermediary. Further, with the centralised KRA system in place, the client has to undertake the KYC process of the account opening process only once. This means he/she need not undergo the KYC process again when he/she approaches different intermediaries in securities markets. "It has now been decided in consultation with various market participants to shift certain information (gross annual income details, occupation, permanent address proof and whether the applicant is a politically exposed person) of part I to part II of the AOF)," as per the circular.

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 indices declined. Tata Power, ONGC, BPCL, Wipro, HDFC Bank stood out gainers while Bajaj Auto, Hero Motors, Dr Reddy, Lupin and PNB  remained major losers among Nifty stocks.

December F&O series closed with a gain of about 3% within a small range. New Derivative series would be commencing from Friday and in case Nifty closes above 6300, positive trend can be expected.

Inputs provided by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

He can be reached @sastry.saaketa@gmail.com

09848014561

  SENSEX UP 42 POINTS

The benchmark Sensex ended 42 points higher today, the last day of equity derivative contracts, led by HDFC Bank, Infosys and ONGC. The initial trading trend was firm after a rally in Asian stocks, although the lack of any major trigger amid the Christmas break kept the market within a tight range, a broker said. The 30-share S&P BSE Sensex opened higher and traded in a narrow, positive range until the afternoon. The index then moved erratically on alternate bouts of buying and selling, touching the day's high of 21,135.85. Futures contracts in the country expire on the last Thursday of every month. The Sensex closed at 21,074.59, a gain of 41.88 points or 0.20 per cent. The broader, 50-share CNX Nifty on the National Stock Exchange rose 10.50 points, or 0.17 per cent, to 6,278.90. The SX40 on the MCX Stock Exchange rose 23.10 points to end at 12,533.26. HDFC Bank, Infosys and ONGC together lifted the Sensex by about 59 points, while Reliance Industries and TCS dragged it lower. Power shares led nine of the 12 BSE sectoral indices higher. The absence of foreign funds from the market due to year-end holidays affected trading volumes, brokers said. Foreign institutional investors slowed their purchases and bought shares worth a net Rs 40.67 crore on Tuesday, according to provisional data from the stock exchanges.

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 degree programmes, it said.
Lack of English knowledge, poor skills in computer and concepts learning were major deterrents to employability.
Poor knowledge of English and inadequate computer skills dampen employability prospects in smaller towns significantly, the report said, adding that for students residing or studying in smaller towns and cities (tier 2 or tier 3), the maximum gap is observed in English and computer skills.
Moreover, not more than 25 per cent of the graduating students could apply concepts to solve a real-world problem in the domain of finance and accounting, while, on average, 50 per cent graduates are able to answer definition-based/ theoretical questions based on the same concept.
The report noted that around 41 per cent of graduates employable in accounting roles hail from colleges beyond the top 30 per cent colleges, whereas for the IT services sector this percentage is 36 per cent.

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 FY2013-14, the economy grew by just 4.6 per cent. The Planning Commission will conduct the mid-term review of the 12th Five Year Plan by the end of 2014, for which the preparatory work has started already, Ahluwalia said. "The 12th Plan has set a target of 8 per cent growth over the five year period 2012-13 to 2016-17. With a growth of only 5 per cent in the first year and perhaps 6.5 per cent in the second, it will require a very sharp acceleration in the later years to achieve an average of 8 per cent over the entire Plan period," the Commission said in its 12th Plan document. The Indian economy grew at over 9 per cent for five years before 2008, a period during which global economy was booming. In one of its major thrusts to fuel economic growth and promote economic activity, the government cleared docks to get going big infrastructure projects by setting up the Cabinet Committee on Investment to deal with situations where clearances were unduly delayed. The Commission in the 12th Plan has also proposed a two pronged strategy to bring the macro economic imbalances under control and to reverse the slowdown, as well as pushing for structural reforms in areas critical for maintaining medium term growth. However, Ahluwalia, remains optimistic of an economic turnaround in the coming quarters on the back of various measures taken by the government supported by good agricultural production this year. "I expect to see recovery in the coming quarters. Exactly how much that it will produce, is difficult to predict right now. But we are definitely on a turnaround path," Ahluwalia said.

Planning Commission Secretary Sindhushree Khullar was of the view that the year was productive and key impediments in the infrastructure sector were successfully removed. "2013 calender year was very productive for us. In 2012, the NDC approved the 12th Plan, so for us, it's a very big milestone of getting all the chief ministers to endorse the plan. So, it's (2013) a very eventful year. "I think we have done reasonably well. We have been very active on the reviews, following up... a lot of work in the infrastructure sector," Khullar said. The Commission during the year also set up a committee under one of its members, B K Chaturvedi, to look into the possibility of utilisation of surplus coal from captive mines by power firms so as to tide over energy related issues. The Committee will possibly submit its report to the government soon. During the year, the Planning Commission also set up an Independent Evaluation Office (IEO) under Ajay Chibber with an objective to improve the effectiveness of government policies and programmes by assessing their impact and outcomes. According to officials in the Planning Commission, the immediate impact of the IEO will not be felt, but in the long run it will help in making significant policy changes. Although, the entire focus during the year had been to revive economic growth and remove policy bottlenecks, the Planning Commission for once again was targeted on poverty data, evoking sharp criticism from opposition and experts. The poverty data by the Commission in July suggested that people spending over Rs 33.33 per day in urban and Rs 27.20 per day in rural areas could not be considered as poor. Earlier in 2012 also, the Commission had said that people with a daily consumption expenditure of Rs 28.35 in cities and Rs 22.42 in villages were above the poverty line. Among others, the Planning Commission also drew attention from various quarters for turning the Yojana Bhawan virtually into a fortress and making it inaccessible during visits of high profile people like Bill Gates, state Chief Ministers -- Narendra Modi, Mamata Banerjee and J Jayalalithaa citing security reasons. In few of the unexpected events, the Commission witnessed protests by a student union from West Bengal that led to manhandling of state Finance Minister Amit Mitra. Mitra was manhandled in a gherao by Students' Federation of India (SFI) activists outside Yojana Bhawan, protesting the death of one of their colleagues in Kolkata. A scuffle between mediapersons and personal security guards of Bill Gates was a forgettable incident during the year.

I AM LEAVING FOR SABARI YATRA TOMORROW ie., 19th DECEMBER AND WILL BE BACK ONLY AFTER CHRISTMAS... UPGRADATION WILL BE ONLY AFTER 25th...

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 Status quo reverses Bearish Sentiment ..!!

Market bounced back with vengeance snapping 6 day losing streak as RBI did not raise the rates as expected by market. Rate sensitive sectors such as Infra, Auto gained along with Bank , Energy, Bank stocks. There was a total change in the sentiment as market got unexpected positive surprise from RBI. All sectoral indices gained as 47 of Nifty stocks gained and broader market too was positive with Advance Decline ratio was placed at 2:1. BHEL, DLF, PNB, Indusind Bank and Bajaj Auto stood out as major gainers while Jindal Steel, SSLT, Ultra cement declined.

IF  FOMC meet decision on QE tapering also favours market, it could head towards a new high too.

Among F&O stocks,  Biocon, HDIL, Orient Bank, Canara Bank, and DLF       remained  major gainers  while GSK Consumer, Jindal Steel, Glenmark and Dabur        closed in the negative.

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                               6139     -16

Review for Tuesday, 17th December, 2013 ::  Continued Bearishness ..!!

Markets fell for the Sixth day in succession and closed with a minor decline . Pharma, FMCG, Media and Infra indices gained while Bank Nifty, Energy, Realty  indices declined. 24 of Nifty stocks gained and broader market too was  marginally negative with Advance Decline ratio placed at 1:1.2. Ranbaxy, Bhrti, Cipla, Sun Pharma, NMDC, SSLT gained while HDFC Bank, Coal India NTPC, HDFC, Bajaj Auto  remained major losers among Nifty stocks. HDFC and HDFC Bank were the major contributors for the negative close of markets.

RBI Policy on Wednesday and FOMC meet later would be the main drivers for the market and market appears cautious ahead of the same with bearish bias.

Among F&O stocks,  Ranbaxy, Bharti, Mc Leod, Divis Lab and PTC       remained  major gainers  while HDFC Bank, IOB, Indai Cememnt, Syndicate Bank, JP Power        remained  losers.