NIFTY OUTLOOK FOR 3rd & REVIEW

SECOND HALF BETTER

Nifty gained for the first time in this week snapping 5 day losing streak. However, it continued to close below 6100 mark. Further, Nifty would get out of bear grip only if it closes above 6175. Nifty spot is expected to encounter resistance at 6130, 6165 and find support at 6050, 6015, for Monday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to be subdued in the opening session and recover thereafter particularly in mid session.

Nifty                               6090     +16

Review for Friday, 31st January, 2014 ::  Narrow and Zigzag Movement.. .... !!

Market traded in a narrow range with Bullish bias on the First day of new derivative series and closed with minor gain, snapping 5 day losing streak. However, broader market was quite positive with Advance Decline ratio at 1.8:1 and among Nifty stocks too 35 scrips advanced. Barring Auto index, all other indices gained le by Media, PSU Bank, Realty, Metal, Infra, Energy and IT. PNB, Bank of Baroda, ACC, Tata Power, BPCL remained major gainers among Nifty stocks while Tata Motors, HDFC, NTPC, Grasim and Asian Paints declined.

Among F&O stocks IOB, ARvind, CESC, Andhra Bank, Syndicate Bank and PNB      gained  with higher Open Interest while Tata Motors, HDFC, JP Power, Hero Motors, HDFC Bank declined with higher Open Interest.

NO WONDER TOOL WITH ME

RAJAN ON CONTROLLING PRICES

Known for his strong monetarist approach and hawkish view on inflation, Reserve Bank Governor Raghuram Rajan today defended the rate hikes earlier this week and ruled out adopting any unconventional tools to tackle price rise. At a Town Hall meeting with school students here this morning, Rajan when asked whether he would be more innovative in combating inflation or will stick to tools adopted by his predecessors of raising interest rates, said he does not have any wonder tool to fight the price rise menace. "Do we have any new or wonderful tool (for inflation) or can we invent one? I think problems emerge when central bankers get overly innovative in the tools that they will use. "So, I think its better to be a little boring and to do what is conventional because conventional works. If you try the unconventional you may create a whole set of new problems," told the meeting organised by the 'Newspaper In Education', a children's publication from the Times Group. "One reason for high inflation is supply-side mismatches and other is too much demand. Now, there are many ways of constraining demand. Less spending by the government is a way of constraining demand. Another way is to make demand match supply, which is to raise interest rates," Rajan said. He, however, was quick to added that to accelerate growth, the central bank is taking newer steps. "We are trying our best to improve health of the economy and we will do whatever it takes to improve that. As far as growth goes we are addressing it through a variety of reforms which make finance easier and more widely available but I hope the answer for us in the demand-side is doing something different from what we are doing now," he said. He further said as far as the current situation in the economy goes we have both supply-side problem -- large projects have been stalled, and also on the food side there are discrepancies in distribution. The Governor who took over charge last September has raised interest rates by 75 basis points in three out of his four monetary policy announcements, citing elevated inflation as a major cause of concern. When asked what the central bank is trying to achieve with the recent hikes in key lending rates, Rajan said it is to keep cost of money higher and manage inflation expectations.

"Can hike in repo rate have some effect (on inflation)? It works in two ways: one, as inflation comes down by keeping the cost of money higher, I think repo rate has an effect. And, second is by setting inflation expectations," Rajan said. "A lot of what central bank does is managing expectations. If I tell you that I intent on keeping inflation contained and I will do what it takes to keep inflation contained, eventually people start to believe it." Rajan further said once people start believing that a central bank is keeping inflation contained, they determine the prices, whether selling now or later, which will moderate prices. "So, inflation management is partly about expectations, partly about doing things that affect the real cost of money, and I think we are trying to do both," the Governor concluded. When a student asked when our monetary policy will determine the course of the world economy, as the US does now, he said, the ideal situation is the one under which every major country takes into account the impact of its actions on other countries. "I have been saying that the US should worry about the effects of its policies on the rest of the world. So if I stood by that, we should not be happy down the line when our policies affect the rest of the world adversely. "We would like the world where countries take into the account the effects of their polices on other countries and do what is right rather than what is just right given the circumstances of their country." He concluded by saying that "as we get bigger we will be significant force in the world economy."

IT's RIDICULOUS TO CHARGE CUSTOMERS

"You are saying charging for using your ATMs. Tomorrow you will start charging for going to the bank."

- Chakrabarty Comment on Banks which are demanding ATM transaction Fees...

Amidst rising demand from banks that they be allowed to increase user fees and limit free access to automated teller machines (ATMs), senior-most Reserve Bank Deputy Governor K C Chakrabarty today said it is "ridiculous" for a bank to charge its own customers for these services. "You are saying charging for using your ATMs. Tomorrow you will start charging for going to the bank," Chakrabarty said here while replying to a query on the matter. "I think it is a little bit ridiculous that bank will charge customers for using an ATM," he said, adding that banks must compare the charges of serving a customer at a branch as against at the ATM. RBI does not decide on service charges, and it was up to the banks to decide their charges, he added. Last week financial services secretary Rajiv Takru had said decision on ATM charges would be taken by the Reserve Bank. Takru had himself favoured free ATM services.
Most banks are losing money because of ATMs. After a near-fatal attack on a Corporation Bank employee at an ATM in Bangalore last November, many states made it mandatory to have round-the-clock security at ATMs, pushing up banks' costs. Banks' umbrella body IBA had said this would cost an additional Rs 40,000 per ATM per month. The IBA requested RBI to cap the number of free transactions to five per month across any ATM network.

NIFTY OUTLOOK FOR 31st & REVIEW

ZIG ZAG MOVEMENTS

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Following Global cues, Nifty opened lower and closed below 6100 mark and appears to have broken on the down side. However, it should be confirmed with another fall to confirm the downtrend. Further, Nifty would get out of bear grip only if it closes above 6175. Nifty spot is expected to encounter resistance at 6115, 6150 and find support at 6035, 6000, for Friday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to move in a zigzag fashion  with alternate bouts of bullishness and bearishness. In view of new derivative series, generally, market can be expected to achieve reasonable pullback in view of the recent sharp fall.

Nifty                               6074     -46

Buying at Lower Levels trims Losses.. .... !!

Market opened sharply lower following global cues of US Fed tapering and remained weak for most part of the day and following short covering and value buying at lower levels and closed with a loss of about 0.75%. Barring Auto index, all other indices closed in the red led by PSU Banks, Metal, Realty, Media and Energy indices. 37 of Nifty stocks closed in the red and broader market too was negative with Advance Decline ratio at 1:3. Tata Motors, Bharti, GAIL, HCL Tech, M&M, BHEL remained major gainers while PNB, Bank of Baroda, DLF, SBI, Hero Motors remained major losers.

Among F&O stocks India Cement, Crompton Greaves, Voltas, Titan, Aurobindo      gained while Bank of India, GMR Infra, Mc Dowell, HDIL, Godrej Industries suffered losses.

 .

INDIA AMONG FRAGILE 5

Emerging markets like India, South Africa and Brazil are being described as 'Fragile Five' by a global investment banker for their over dependence on skittish foreign investment to finance their growth ambitions. The new catchphrase 'Fragile Five' is being used to describe markets which have witnessed economic turmoil in recent years, a rival to the term BRICs that had highlighted the long-term growth potential of Brazil, India, South Africa, Russia and China. A report in the New York Times said the 'Fragile Five' has been coined by a research analyst at Morgan Stanley which identifies Turkey, Brazil, India, South Africa and Indonesia as "economies that have become too dependent on skittish foreign investment to finance their growth ambitions." It said that the term 'Fragile Five' has caught on in large degree as it highlights the "strains that occur when countries place too much emphasis on stoking fast rates of economic growth". The new catchphrase is also raising pressing questions about not just the state of the BRICs economy but about emerging markets in general. The term coined by Morgan Stanley became a quick and easy way for investors to give voice to fears of a broader emerging markets rout, propelled by runs on the Turkish lira, Brazilian real and South African rand. Morgan Stanley currency analyst James Lord sent out last August a research note warning of the risks within the "fragile five". The name spread quickly, especially among investors already nervous about their emerging-market holdings. Lord and his team at Morgan Stanley have been playing down his original thesis. "We have been using the term less and less in our research," he said, explaining that responses by policy makers in these countries have to some extent addressed the issues he raised. Jim O'Neill, an economist at Goldman Sachs, who had coined the term BRICs in late 2001, said he still believes these markets are the "best investment opportunities in the world." 
When O'Neill had coined the BRICs phrase, foreign capital inflows into emerging markets were about USD 190 billion a year, according to data from the Institute of International Finance, the trade group for international banks. As yield-starved investors poured into O’Neill’s markets and their economies, the annual net inflows into BRICs markets averaged a little over one trillion dollars a year since 2010. However the economic picture changed last summer, when the Fed’s announcement that it would eventually reverse its bond-buying programme panicked giddy emerging-market investors, the report added. Concerns like a slowdown of growth in China, political uncertainty in Russia and Turkey and "most crucially", vulnerable currencies in Brazil and South Africa, spurred concerns over the possibility of a broader market panic, the report added.

KOTA's FLY ASH GOT PATENT

Fly ash of Kota Thermal Power Plant (KTMP) has received a patent as catalyst for manufacturing of tablets such as Aspirin and Disprin. Kota University's professor Aashurani and research scholar Chitralekha Khatri had been working for last four years on the research project 'Green Catalytic Process for Aspirin Synthesis Using Fly Ash as Hydrogenous Solid Acid Catalyst' funded by Fly Ash Mission, Government of India. The present process of manufacturing Disprin consumes too much water and causes pollution, whereas making the same drug with fly ash consumes a little water as its catalyst fly ash is in solid form, Aashurani said. Following the reaction, very little quantity of water is required to separate Disprin, she said. She further said the Disprin manufactured with ash fly would be 50 per cent cheaper than the drug presently being sold in the market. The letter from the Intellectual Property Right (IPR) for the patent of the Disprin drug by fly ash has been received on January 25, 2014, she added. "It's a point of pride for the University of Kota and the research team," Aashurani said. The Disprin is likely to come in the market in the next 2 to 3 years as National Research & Development Corporation (NRDC) has taken up the responsibility for commercial manufacturing of Asprin and Disprin through fly ash process, she added.

NIFTY OUTLOOK FOR 30th & REVIEW

GLOBAL CUES, F&O EXPIRY TO DECIDE THE PATH

Market appears to be trading in a sideways range for the last Two days  waiting for the next cue from FOMC meet to go up or fall sharply. However, Nifty is still closing  within the narrow range of the last Seven weeks and has not breached 6100 mark decisively. However, semblance of stability would return only on a close above 6200 mark. FOMC decision on stimulus tapering would be the next big event to drive the markets and Market can be expected to open Thursday morning Gap up / Gap Down after the news. Nifty spot is expected to encounter resistance at 6160, 6195 and find support at 6080, 6045, for Thursday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to react to global cues in the opening and have scrip specific movements in view of derivative expiry.

 Nifty                               6120     -6

Review for Wednesday, 29th January, 2014 ::  Selling at Higher Levels.. .... !!

Market opened higher following global cues but could not hold on to the gains in the Second half of the day to close with a minor loss. 28 of Nifty stocks gained and broader market too was positive with Advance Decline ratio at 1.1:1. Pharma, IT, Infra, Auto indices gained while PSUBank , Metal, Media, Realty indices declined. Maruti which fell yesterday stood out as major gainer followed by BHEL, BPCL, Ranbaxy while SSLT, Indusind Bank, Bank of Baroda, Tata Steel and Bajaj Auto remained major losers among Nifty stocks.

Among F&O stocks Adani Enterprises, MAruti, Godrej Industries, HPCL, IOC      gained while IOB, India Cement, SAIL, IDBI, Uco Bank and SSLT suffered losses. 

NSE FISISHES FLAT

Strong corporate earnings could not sustain the market sentiment as fag-end profit-booking ahead of tomorrow's F&O expiry day led the indices to end almost flat for second day at the National Stock Exchange (NSE) today.
Earlier, hectic buying along with short-covering recouped the market from overnight loss to trade in positive zone buoyed by firm Asian cues and robust Q3 earning results in Telecom giant Bharti-Airtel and premium lender ICICI bank.
But, later both the shares fell as investors fail to absorb the Bharti Airtel estimate with the projected earnings and ICICI Bank data of non-performing asset rose in its December Q3.
Massive dumping by FIIs for the past two days amid investors anxiety on outcome of two-day Federal Reserve meet on reduction in stimulus which would be due later tonight took the bourses to extreme choppiness. Meanwhile, Foreign institutional investors (FIIs) sold shares worth a net Rs 1,267.35 crore as per the provisional data from the stock exchanges.
Selling was seen mainly in banking, metal, energy and realty counters. While IT, pharma, FMCG and shares from mid-cap and small-cap companies witnessed buying activity.
The 50-share index traded between a high 6,170.45 and a low of 6,109.80 before closing at 6,120.25, down 6.00 points, or 0.10 per cent, over the previous close.
Major losers were SSLT, IndusindBk, Bank of Baroda, Tata Steel, Bajaj Auto, Hindalco, ICICI Bank, Jindal Steel, SBIN and PNB.
Key gainers were Maruti, BHEL, BPCL, Ranbaxy, Heromotoco, Sunpharma, Axis Bank, Cipla, Asian Paint and Infy.
Turnover in the cash segment declined to Rs 11,112.44 crore from Rs 12,780.51 crore yesterday. A total of 5,487.25 lakh shares changed hands in 55,13,877 trades, while market capitalisation stood at Rs 65,93,324 crore.

OVER 13% DIESEL CONSUMED BY LUXURY CARS

Over 13 per cent of subsidised diesel in the country is consumed by high-end cars and SUVs, says a study commissioned by the Oil Ministry, showing that cheaper fuel is finding usage by unintended beneficiaries.

A study conducted by Nielsen for the ministry's Petroleum Planning and Analysis Cell (PPAC) found that private cars consumed 13.15 per cent of the 69.08 million tonne diesel consumed in the country in 2012-13.
Commercial vehicles used another 8.94 per cent and three-wheelers, a further 6.39 per cent.
Commercial vehicles such as trucks however constituted the largest user base of diesel at 28.25 per cent, the study said, adding that 70 per cent of the diesel was being used in the transport sector.
Agriculture tractors and pumps used 13 per cent of the diesel.
Industries and electricity generators consumed almost 9 per cent diesel, while mobile towers used 1.54 per cent.
The study found that 99.6 per cent of petrol is consumed in the transport sector alone.
"Of this, majority consumption of 61.42 per cent is accounted for by two-wheelers while cars use 34.33 per cent, followed by 3-wheelers at 2.34 per cent," an official statement said.
It was also revealed that in Odisha, Bihar and Rajasthan, petrol consumption by two-wheelers exceeds 70 per cent.
The consumption by three-wheelers is very low in states like Delhi, Haryana, Gujarat and Odisha, where consumers have shifted to CNG or diesel.
"While pricing of petrol was deregulated, diesel prices are still being regulated, with subsidy running at Rs 8.47 per litre currently," the statement said.
The total subsidy on diesel during 2012-13 was Rs 92,061 crore, constituting 57.2 per cent of the total fuel subsidy.
"The question as to where the Diesel is getting consumed is very relevant in this context," it said.
The statement added: "Based on sector-wise consumption pattern of diesel, it would mean that of the total under- recovery of Rs 92,061 crore on account of diesel during 2012- 13, about Rs 12,100 crore went to owners of private cars and utility vehicles, about Rs 8,200 crore to commercial cars and SUVs, about Rs 26,000 crore to trucks, about Rs 8,800 crore to buses, about Rs 12,000 crore to agriculture sector and about Rs 15,600 crore to other sectors."

RBI A VIGILANT OWL

The Reserve Bank brass took to ornithology to explain its policy stance and its intents as it took everyone by surprise with a rate hike today. "We are neither hawks, nor doves. We are actually owls," Governor Raghuram Rajan said eliciting loud laughter at the customary post-policy press conference here. He was answering a question on the self-contradiction in the RBI's third quarter monetary policy, which is hawkish in its stance as it unexpectedly raised rates, but dovish in its guidance because of indications of a pause.
"An owl is traditionally a symbol of wisdom. So we are neither doves (nor hawks)...but owls, and we are vigilant when others are resting," Deputy Governor in charge of monetary policy, Urijit Patel elaborated.
"The broad point is that don't try and put us into buckets. We are doing what is necessary for the economy," Rajan chipped in again. He cited the last policy's experience as a case, saying it was decided to hold on because of the RBI's focus on being vilgilant.
"I think the last time we wanted to say we were vigilant but waiting for more data flows. That meant we didn't act but we wanted to convey the signal that we were ready to act," he said.
Rajan assured that over a period of time, once inflation cools, the RBI will have more room to cut interest rates and may also advance the rate cuts if the inflation cools faster than expected.

SLYM COMMITTED SUICIDE AFTER ARGUMENT WITH WIFE

Karl Slym, Tata Motors Managing Director, apparently committed suicide after arguing with his wife and reading a note written by her that referred to "domestic problems", Thai police said today. In a fresh twist to Slym's death in mysterious circumstances, police said the three-page handwritten note found in the hotel room from which the 51-year-old executive plunged to his death, was written by his wife Sally. Police said Slym could have taken the "extreme step" after reading the note by his wife of 30 years that mentioned "domestic problems". "The note was written by Sally Slym. The couple had had an argument. It is her writing," Police Lieutenant Somyot Booyakaew told PTI, noting that it was not a suicide note by the victim. He did not give further details. Somyot reiterated that Slym's death was not a murder. Police now believe Slym must have jumped through an open window in his 22nd floor suite at the Shangri-la Hotel as the opening was too small for a person to slip through and fall. The suite has a huge sealed window overlooking the Chao Praya River and a small nearby window that can be opened. Slym died from the impact of the fall, which fractured his skull. The British national's body was found on Sunday by the staff of the hotel on the balcony of the fourth floor after plunging from the 22nd floor. He was here to attend a meeting of the Board of Directors of the Thai subsidiary of his company. Somyot earlier said there were no signs of a struggle in Slym' room, which did not have a balcony.

RBI RAISE POLICY RATES BY 0.25 PERCENTAGE POINTS

Reserve Bank Governor Raghuram Rajan today again surprised the markets and raised the key policy rate by 0.25 per cent to 8 per cent in a bid to curb inflation, a move that may translate into higher EMIs and push up the cost of borrowing for corporates. "...an increase in the policy (repo) rate by 25 basis points is needed to set the economy securely on the recommended disinflationary path," Rajan said while unveiling the Third Quarter Review of Monetary Policy. Consequently, the reverse repo rate under the liquidity adjustment facility will be revised to 7 per cent and the marginal standing facility rate and bank rate to 9 per cent. However, the RBI kept the cash reserve ratio unchanged at 4 per cent as liquidity seems to be comfortable. It was widely expected that Rajan would maintain the status quo on rates to support growth. Ahead of the quarterly review, Rajan had termed inflation a "destructive disease." The Governor said economic growth would be below 5 per cent in the current financial year and could accelerate in 2014-15 to a mean projection of 5.5 per cent. In line with the Urjit Patel committee recommendations, monetary policy reviews will henceforth be undertaken every two months, consistent with the availability of key macroeconomic and financial data, Rajan said. The RBI's baseline projections for retail inflation indicate that over the ensuing 12-month horizon, and with the current policy stance, there are upside risks to the central forecast of 8 per cent. "The extent and direction of further policy steps will be data dependent, though if the disinflationary process evolves according to this baseline projection, further policy tightening in the near term is not anticipated at this juncture," he said. The repo rate hike is likely to have a bearing on interest rates and may push up the cost of funds for retail as well as corporate borrowers. Following policy announcement, the stock markets fell sharply but quickly recovered and were trading almost flat at 11.30 am. 
While core inflation data was steady in December, Rajan said prices are hardening in the services sector and in key intermediates. This, seen in conjunction with rising bank credit, increase in order books, pick-up in capacity utilisation and the decline in inventories of raw materials and finished goods in relation to sales, indicates that aggregate demand pressures are still imparting an upside to overall inflation. "It is critical to address these risks to the inflation outlook resolutely in order to stabilise and anchor inflation expectations, even while recognising the economy is weak and substantial fiscal tightening is likely in Q4," he said in the monetary policy document. While retail inflation measured by the consumer price index (CPI) declined significantly on account of the expected disinflation in vegetable and fruit prices, it remains elevated at close to double digits. Inflation, excluding food and fuel, has also been high, especially in respect of services, indicative of wage pressures and other second round effects, he said. In terms of the wholesale price index (WPI), headline inflation eased to a four-month low with the sharp decline in vegetable and fruit prices. Non-food manufactured products inflation, however, rose in December on higher prices of chemicals, non-metallic minerals and paper products. A silver lining is the significant narrowing of the trade deficit on the back of resilient export growth, he said, adding that the current account deficit for 2013-14 is expected to be below 2.5 per cent of GDP compared with 4.8 per cent in 2012-13. On the external front, Rajan said the slowdown facing the Chinese economy is a clear potential risk that could lead to a financial market contagion.
The recent resumption of capital inflows should help finance the current account deficit comfortably, Rajan added. Reserves have been rebuilt since September and are expected to increase as oil marketing companies repay the Reserve Bank when their swaps come due, he said. "Nevertheless, given the uncertain external environment, the government and the RBI cannot pause in their efforts to ensure fiscal and monetary stability," he said. The Governor disappointed bankers by not heeding their call to reduce the cash reserve requirement, which was left unchanged at 4 per cent. Commenting on the policy announcement, Prime Minister's Economic Advisory Council Chairman C Rangarajan said this is a reflection of the strong commitment of the Reserve Bank to price stability, the chief objective of the monetary policy. "I think the decision also reflects certain change in terms of the indicators that they are monitoring. While wholesale inflation remains near the comfort zone, the CPI is not and therefore the decision to increase the interest rate is once again a reflection of the shift in terms of the focus from wholesale price inflation to retail inflation," Rangarajan said. Asked if the RBI's action would translate into a hike in interest rates, State Bank of India Managing Director A Krishna Kumar said, "We need to discuss this further in detail. As of now, it (deposit rate hike) looks unlikely. We need to look at the overall data."  

ISB SLIPPED TO 36th POSITION

Premier B-schools Indian Institute of Management Ahmadabad (IIMA) and Indian School of Business (ISB), Hyderabad have slipped from their current positions to lower ranks in the Financial Times (London) Global MBA Ranking-2014. For the first time, Indian Institute of Management Bangalore (IIMB) has found a place on the chart at 68th position. With this, it has become third such Indian institution to have figured in top 100 management schools globally. According to Global MBA Ranking-2014 released yesterday by FT, rankings of IIMA and ISB slipped to 30 and 36, respectively, from their last year's positions of 26 and 34 respectively. ISB had slipped 14 points to rank 34 last year as against 20th position a year before. Similarly, IIMA had slipped 15 places at 26th rank from 11th position in 2012. In 2011, IIMA ranked 11th and ISB 13. When contacted, a senior ISB official pointed out that ISB was the youngest institution to find a place in global MBA rankings in 2008. "Since then ISB has consistently been ranked among the best globally. Our programme continues to provide the highest quality of learning and professional opportunities to our students, which is what institutions can and must focus on.
"In the recent years, a key factor affecting Indian schools has been the weakening of the rupee and its corresponding impact on the PPP (Purchasing power parity) exchange. This has affected the weighted salary parameters which accounts for 20 per cent of the ranking criteria. It seems Indian schools have been disproportionately impacted by this, relative to schools from other countries", the official told PTI. Harvard Business School, Stanford Graduate School of Business and London Business School occupied first, second and third positions, respectively in this year's ranking. 
With respect to weighted average salary, IIMA student is paid an annual USD 1,57,459 (86 per cent increase over last year) while his ISB counterpart is drawing USD 1,17,308 (130 per cent hike) whereas the student of debutant IIMB is being paid weighted salary of USD 1,25,249 per annum. The ranking is based on two surveys of the business schools and their alumni who graduated in 2010. MBA programmes are assessed according to the career progression of their alumni, the school's idea generation and diversity of students and faculty, FT said. "This is the fifth time (that) Harvard has topped the rankings since the survey began in 1999. Stanford Graduate School of Business remained second, while London Business School leapfrogged the Wharton school at the University of Pennsylvania, pushing the latter into fourth place. Columbia Business School and Insead are joint fifth", FT said in its website. To compile the 2014 ranking, FT surveyed 23,000 alumni from 153 business schools across the globe. More than 10,000 MBA graduates completed the survey, a response rate of 47 per cent, according to FT. 

UK QUEEN's FINANCES CRUMBLING

Queen Elizabeth II's household finances are at a "historic low" with just 1 million pounds left in reserve, even as the royal palaces were "crumbling" and in urgent need of repair. A report by the Commons public accounts committee found that the Queen's advisers were failing to control her finances and her courtiers have been advised to take money-saving tips from the Treasury, The Telegraph reported. MPs said her advisers had overspent to such an extent that her reserve fund had fallen from 35 million pounds in 2001 to just 1 million pounds today. The Royal household had made efficiency savings of just 5 per cent over the past five years compared with government departments, that are cutting their budgets by up to a third. MPs on the committee said the Treasury must "get a grip" and help to protect the royal palaces from "further damage and deterioration". The 87-year-old Queen's household finances are at a "historic low" even as the royal palaces were "crumbling" and in urgent need of repair, the report said. Margaret Hodge, the Labour chairman of the committee, was quoted by the daily as saying: "We believe that the Treasury has a duty to be actively involved in reviewing the household's financial planning and management — and it has failed to do so." Buckingham Palace and Windsor Castle are reported to be in urgent need of repair. Staff must catch rain in buckets to protect art and antiquities, while the Queen's old boilers were contributing to bills of 774,000 pounds a year, the report said. "The household must get a much firmer grip on how it plans to address its maintenance backlog. It has not even costed the repair works needed to bring the estate back to an acceptable condition. Again, the Treasury has an oversight role here," Hodge said. In April 2012 the Sovereign Grant replaced the old way of funding the Royal family through the Civil List and various government grants. The Sovereign Grant represents 15 per cent of the net surplus income of the Crown Estate, land holdings that generate money for the Treasury. A Buckingham Palace spokesman said the sovereign grant had made the Queen's funding "more transparent and scrutinised" and was resulting in a "more efficient use of public funds". He said repairing the royal palaces was a "significant financial priority" and that the Royal household had almost doubled its income to 11.6 million pounds since 2007.

NIFTY OUTLOOK FOR 29th & REVIEW

SECOND HALF BETTER

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Despite unexpected rate hike from RBI, Nifty closed with minor loss only for the day and did not decisively close below the lower end of the last Seven week’s range. However, semblance of stability would return only on a close above 6200 mark. FOMC decision on stimulus tapering would be the next big event to drive the markets. Nifty spot is expected to encounter resistance at 6165, 6200 and find support at 6085, 6050, for Wednesday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to recover slowly in Second half of the market.

 Nifty                               6126     -10

Review for Tuesday, 28th January, 2014 ::  RBI raises Rates.. .... !!

Contrary to market expectation, RBI hiked rates by 0.25% keeping in view the inflation. Market fell sharply at the time of announcement but recovered slowly to close with minor loss. In view of global cues. Market had already fallen sharply in the previous Two days leaving little scope for further fall. 30 of Nifty stocks gained and broader market too was positive with Advance Decline ratio at 1.05 : 1.,Metal, Realty, FMCG, Media indices gained while Pharma, IT and Bank indices declined.. Tata Steel, Ranbaxy, SSLT, Hindalco, JP Associates remained major gainers among Nifty stocks while Maruti, Axis Bank, Lupin, Sun Pharma, Cipla remained major losers among Nifty stocks.

.

 Maruti fell sharply reacting adversely to the news about the arrangement for new plant at Gujarat and the results

Among F&O stocks HDIL, Apollo Tyres, FRL, Glenmark, Tata Steel      gained while MAruti, IRB, IDEA, UPL, Axis Bank suffered major losses.

NIFTY OUTLOOK FOR 28th & REVIEW

RBI POLICY HOLDS KEY...

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

The week started off on a negative note with Nifty falling by more than 2% and closing below 6150 mark. It is close to the lower end of the last Seven week’s range and any further fall due to negative RBI Policy could weaken the sentiment further and trigger a sell off. However, most stocks are already very weak. PSU Banks and rate sensitive stocks were nervous ahead of RBI Policy on Tuesday.  Nifty spot is expected to encounter resistance at 6175, 6210 and find support at 6095, 6060, for Tuesday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , RBI Policy can be expected to give direction to the market and any smart rise may be utilized to reduce long positions in view of the overall weakness and the FOMC decision lateron.

Nifty                               6136     -131

Review for Monday, 27th January, 2014 ::  Black Monday.... !!

Market opened weak following global cues and could not have any meaningful pullback and traded with further bearish bias to close with a loss of more than 2%. 45 of Nifty stocks closed in the red and braoder market too was quite negative with Advance Decline ratio at 1:5.5. Bank and other rate sensitive sectors remained very weak ahead of RBI’s policy on Tuesday. Realty, Bank, Metal, Media , Auto and Infra indices were quite weak and no sectoral index ended in the green. Hind Unileverl HCL Tech, Cipla and ITC managed to close in the green while JP Associates, DLF, Ranbaxy, Tata Motors, Tata Steel remained major losers among Nifty stocks. On the whole, it was another Black Monday.

Among F&O stocks Glenmark, Hind Unilever, HCL Tech, Cipla and ITC      gained while JP Associates, JP Power, HDIL, GMR Infra, IRB, IB Realestate and DLF suffered major losses. 

SENSEX RECORDS BIGGEST LOSS IN 2014

Hit by a global sell-off, the Sensex today plummeted over 426 points, in the biggest drop in about five months, on fears linked to US monetary stimulus tapering and investors turning cautious ahead of the RBI policy meet. The sentiment further dampened after the rupee slipped past the 63-mark versus dollar as a rout in emerging market currencies continued. Reports said Argentina abandoning support of its peso on the open market affected investors. After opening nearly 235 points lower, the BSE 30-share Sensex remained in the negative terrain throughout the day. It touched a low of 20,688.03, before settling at 20,707.45, a drop of 426.11 points or 2.02 per cent compared to Friday's close. This was the biggest drop since the 651.47-point plunge on September 3, 2013. Today's closing also marks the weakest level in 3 weeks. ICICI Bank and HDFC Bank led 27 losers in Sensex lower. Tata Motors and Tata Steel slid by over 6 per cent each. A bout of uncertainty has gripped investors, especially those betting on rate-sensitive banking, auto and realty, after the RBI Governor Raghuram Rajan called inflation a "destructive disease" last week. Hopes of a rate cut had faded after a panel recommended making retail inflation a priority. "...there is an anticipation in the market that RBI will keep its interest rates high in spite of some corrections seen in the inflation numbers," said Jignesh Chaudhary, Head Of Research, Veracity Broking Services. Overall, 1,952 stocks declined while 643 gained on the BSE -- meaning seven out of every ten stocks ended lower. All 12 BSE sectoral indices ended in the red. Profit-booking by wary investors ahead of the expiry of January equity derivative contracts on Thursday was also one of the factors responsible for the down-trend.

The 50-issue NSE Nifty tumbled by 130.90 points, or 2.09 per cent, to settle at one-month low of 6,135.85. "Markets in India fell sharply largely due to the weakness in global markets and ahead of RBI meeting tomorrow. Concerns over the contagion from emerging markets like China and Argentina kept sentiments subdued," said Dipen Shah, Head- Private Client Group Research, Kotak Securities. Over 100 stocks on the BSE hit their 52-week lows as second-line stocks too were at the receiving end. 

IS IT A SUICIDE?

Karl Slym, Managing Director of Tata Motors, who died here yesterday under mysterious circumstances, may have committed suicide, Thai police indicated today. 51-year-old Slym's body was found by the staff of a five-star hotel on the balcony of the fourth floor after plunging from the 22nd floor. He was here to attend a meeting of the Board of Directors of the Thai subsidiary of his company. Police have found an apparent suicide note at the scene which has been sent for analysis to confirm that it was written by Slym. "Initially, we can only assume that he committed suicide," a police officer said. Police ruled out murder as the cause of the death of Slym, who allegedly fell out of a window of his room at the riverside Shangri-la Hotel. Officials told the media that the window was small and "he had to try hard to get through it". The hand-written note was reportedly found in the room which Slym and his wife of 30 years had checked into on January 24. They were to check out yesterday. The note is also being translated into Thai as part of the investigation, officials said. Police Lieutenant Somyot Boonyakeow said there were no signs of a struggle in the British national's room, which did not have a balcony but had a big sealed glass window and another smaller window that could be opened. Slym's body was identified by a Tata Motors official, said sources. An autopsy was scheduled for later today. The executive's wife may later take the body to Britain, sources said. Boonyakeow said Slym's wife will also be interviewed. Pornchai Suteerakune, who heads the Institute of Forensic Medicine, told reporters that Slym was killed by the fall from the 22nd floor.

DIP IN AGRICULTURE WORK FORCE

The workforce in agriculture and allied activities has come down by 11 per cent during the last decade, signalling rise in secondary and tertiary sectors, self-employment and regular jobs, according to a study. "The number of people depending upon agriculture and allied activities for their livelihood has come down from over 60 per cent to 49 per cent between 1999-2000 and 2011-12," the Assocham study said. "The number of people employed in secondary and tertiary sectors have grown significantly from about 16 per cent and 23.5 per cent in 1999-00 to about 24 per cent and 27 per cent respectively as of 2011-12," the study titled 'Structural Shift in Rural Employment' said. Rural employment pattern has undergone massive change and these changes are likely to continue in future as they are driven by high level of public and private investments in rural areas and also trickle down impact of investments in agriculture itself, said D S Rawat, secretary general of the industry chamber said. The shift from dependence on farm related jobs towards acquiring other skills and engaging in self-employment, trade and services should be encouraged as it would help intensify financial inclusion in rural areas and contribute to national growth, he added. The number of individuals employed in the agriculture sector have declined from about 261 million in 2009-10 to 231 million as of 2011-12, the Assocham study said. While the number of those employed in manufacturing sector have increased from about 55 million in 2009-10 to about 66 million in 2011-12, the number of people engaged in mining has increased by one million. Those employed in construction sector have almost doubled and those in services sector have also increased by about 17 million, it added. 

GOLD SMUGGLING ON RISE

Indicating a surge in cases of gold smuggling, sleuths of revenue department have seized the yellow metal worth about Rs 245 crore being pushed illegally through the country's borders in the past one year. As many as 700 cases of gold smuggling have been reported across the country so far during 2013-14, official sources said. These cases were reported by customs and Directorate of Revenue Intelligence (DRI) officials, among others, through international airports and land borders, and involved seizure of gold valuing about Rs 245 crore, they said. There were 870 cases of gold smuggling reported during 2012-13 involving seizure of the yellow metal worth Rs 99 crore, the sources said. The increase in cases of gold smuggling has been a matter of concern for Finance Ministry which is grappling to rein in Current Account Deficit (CAD), difference between the outflow and inflow of foreign currency. The CAD touched a historic high of USD 88.2 billion or 4.8 per cent of GDP in 2012-13 and was mainly attributed to high imports of petroleum products and gold. India, the largest gold consumer in the world, has imported 830 tonnes of gold in 2012-13. Finance Ministry has been taking various steps to curb gold imports. Revenue department officials blame gold import duty hike for rise in cases of smuggling. The Finance Ministry had in January, 2012 decided to hike duty to two per cent by making it ad-valorem (according to value). Earlier, Rs 300 was charged as tariff on the import of 10 grammes of gold. Subsequently, it was raised to four per cent in 2012-13, six per cent in January 2013, eight per cent on June 5 and 10 per cent in August last year.
Finance Minister P Chidambaram has appealed to people to control their appetite for the precious metal. He had on Thursday said that curbs on gold imports can be rolled back only after India obtained a firm grip on the CAD. "Until we have a firm grip on the CAD, I don't contemplate any rollback of any measure," he had said in Davos. The Finance Minister was there to participate in World Economic Forum (WEF). Besides smuggling, authorities are also worried over a new trend of Indians, who have lived abroad for over six months, bringing gold into the country. An Indian citizen who has been living abroad for over six months can bring in 1 kilogramme of gold legally after payment of duty. The duty, which is charged at the rate of 10 per cent, is payable in currency of the nation where the gold was bought, according to norms. At least 3,000 kg of gold has been legally brought into the country after payment of customs duty during 2013-14, officials said. Now, the customs and DRI officials are sharing PAN card details with Income Tax departments to check suspicious ferrying of the yellow metal into the country, the sources said. 

MARUTI FINED FOR DIFFECTVE CAR

Maruti Udyog Ltd, the nation's largest car maker, has been directed by a consumer forum here to pay Rs 3.85 lakh as compensation to a customer for selling her a defective Wagon R. The New Delhi District Consumer Disputes Redressal Forum observed that the car bought by the complainant in 2006 for Rs 3.88 lakh was suffering from "some manufacturing defect" and could not be repaired despite the efforts made by Maruti. The forum, presided over by C K Chaturvedi, relying upon the documents and other material placed before it said, "It is established that the car could not be repaired despite efforts made by opposite party (Maruti) and defects appeared again and again, leading to total loss of satisfaction to the purchaser. "We are of the view that the car has some manufacturing defect in its gear system or in its engine operation. In view of the facts that now it is seven years since the car was purchased, it will not be possible to replace the car and we direct Maruti to pay a compensation of Rs 3.5 lakh to complainant for the defective car. We allow Rs 35,000 as litigation expenses," the forum said. The order came on the plea of complainant, Veena Amlani, who had alleged that the Wagon R car she bought in October 2006 started giving trouble, including problems in shifting gears, soon after purchase and despite taking it for repairs, the issue was not rectified. While Maruti did not dispute that the car was brought in for repairs more than 10 times in the first one-and-a-half year of its purchase, it contended that vehicles made by it undergo all quality control checks as well as pre-delivery inspection. The company also contended that the complaint was false. 

KARL LSLIM SAD DEMISE

Tata Motors Managing Director Karl Slym today died after apparently falling from a hotel building in Bangkok where he had gone to attend a board meeting of the company's Thailand arm. According to a company spokesperson, Slym seems to have fallen from a higher floor of a hotel in Bangkok. The post-mortem will take place tomorrow, the spokesperson added. Slym, 51, was leading the company at a time when the auto industry was grappling with prolonged slowdown. He joined the auto major in 2012 as part of a major management overhaul and was responsible for charting out the company's strategy to regain momentum in the domestic market. Expressing condolence at the sudden demise, Tata Motors Chairman Cyrus P Mistry said: "Karl (Slym) joined us in October 2012, and was a valued colleague who was providing strong leadership at a challenging time for the Indian auto industry. In this hour of grief, our thoughts are with Karl's wife and family." Slym was visiting Bangkok for a meeting of the Board of Directors of Tata Motors Thailand Ltd, he added. As part of restructuring exercise Slym last week had announced a voluntary retirement scheme to a section of employees to rationalise costs. 

ASTRO TECHNICAL GUIDE FOR NIFTY

RBI POLICY HOLDS KEY...

For the week (27.01.2014 to 31.01.2014)

Planetary Position ::  During the current week Moon would be
transiting  from Jyeshta in Scorpio  to Dhanishta in Capricorn.Sun transits in Sravana constellation in Capricorn. Mercury transits in  Dhanishta in   Aquarius sign.Mars  transits in   Chitta constellation in Virgo.   Saturn continues in Visakha  constellation in  Gemini navamsa.Jupiter transits in Retrograde motion (till 6^th March 2014)  in Gemini and presently in  Pisces Navamsa . Venus, in retro motion till 1^st February 2014,  transits in  Poorvashadha  constellation in Sagittarius ..Grand Square effect involving Mars and Outer planets had their effect on all world markets too during weekend. With Moon in Sagittarius, it would be once again in Grand square involving Mars, Uranus, Jupiter  and highly volatile movements are likely.

Nifty Outlook  

NIFTY :: 6267 (+5)  

Nifty closed flat for the week amid volatile movements. Though it moved in a narrow range, it maintained on the positive side for the Four days of the week and gave up all the gains on Friday. Weekly movement with closure at the lower end of the weekly range and possible lower opening for next week suggests weakness and further downside. However, broader index does not speak of the total market movements as there was scrip specific movement and market breadth was negative as Declines outnumber Advances even on days when Nifty was positive. This phenomenon indicates profit booking at higher level as times are uncertain in view of the Big event of General elections in 2014. Sectoral and Scrip rotation can be considered  to be the order of the day. As weekend Global cues were quite negative, sharp lower opening is to be expected and any further fall could be considered negative. Further, Nifty has been moving a range of 6125 and 6350 and had once again faced resistance at the upper end of the range and would be coming to the lower end of the range. If RBI Policy on Tuesday does not provide support to the market, lower end of the range i.e., 6125 could be breached. On the other hand, if it lends support, Nifty could remain in the range for some more time before finding direction. As poll surveys predict that NDA is ahead of others, market could remain optimistic. Any sharp fall upto about 5900 – 6000 could be utilized as an opportunity to accumulate quality stocks.

Medium and Long term trend is Bullish and Short term trend is Neutral with support and Resistance at 6125 and 6350 respectively. IT and Pharma (export oriented) sectors are bullish. This week’s major event is RBI’s policy, which would provide direction to market trend particularly certain sectors auch as PSU Banks and interest rate sensitive sectors.

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 (after Elections).  . Technically, Nifty is in a narrow range and major support at 6125 and resistance at 6350 (on close basis)  and unless either of these levels is broken decisively, it can be considered to be in neutral range.  Nifty is  above 200  DMA   and   50DMa is above  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.

For the coming week, Nifty spot is expected to face resistance at
6340,  6420, 6500 and find support at 6185, 6105, 6025.

Nifty spot has strong  support at 6125 and resistance at 6350. Nifty needs to decisively close below 6125 for a couple of days to sustain downward  momentum.

Advice for Traders :: Nifty has been trading between 6350 and 6125 for the last Six weeks and can be expected to remain sideways. However, scrip specific actions is possible in view of the results and last week of F&O expiry. RBI Policy could be expected to provide direction to market. . Strong support exists at 6125 below which only  it can be expected to have downward momentum. Close below 6125 is possible only in case of negatives in RBI Policy. Hence RBI Policy holds the key for the week.

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

BUCKINGHAM CANAL ON REVIVAL PATH

The Centre today said it has decided to develop 37 km of the National Waterway-four (NW-4) between Sholinganallur to Kalpakkam in South Buckingham Canal in Tamil Nadu, entailing Rs 123 crore expenditure. "Launching the project the Minister of Shipping G K Vasan said that the main components of the project include dredging and excavation to develop navigational channel, construction of three terminals and navigational locks, replacement of one existing bridge at Kelambakkam, and installation of navigational aids," an official statement said.
The central government has sanctioned over Rs 123 crore for the purpose and the project is expected to be completed in two years, it said. Vasan said the other stretches of the National Waterway-4, which cover the states of Andhra Pradesh, Tamil Nadu and Puducherry, would also be taken up for development subsequently. NW-4 covers a total length of 1,078 Km consisting of Kakinada-Puducherry canal systems integrated with Godavari and Krishna Rivers.
Also inaugurating an office of the Inland Waterways Authority of India at the campus of the Indian Maritime University in Chennai today, the minister said the project will ease out the transportation problems in Chennai suburbs to a great extent besides promoting tourist movement to important tourist spots at Mahabalipuram and Puducherry.
The development of South Buckingham Canal can also improve the drainage system during flood season in Chennai city. The statement said the canal will be developed to make it suitable for safe navigation of cargo vessels up to 300 tonne capacity for transportation of general cargo like food grain, fertilisers, building materials, etc.
The canal shall also be suitable for movement of the passenger and tourist vessels of higher capacity from Chennai to Mahabalipuram and in future upto Puducherry and vice versa.
The terminals at Shollinganallur, Mutukkad and Mahabalipuram have been planned for construction and will be operated with necessary facilities for cargo, passenger and tourist vessels, it added.

NOW IT's THE TURN OF FORIEGN AIRWAYS

Taking a cue from price war in the domestic sector, two foreign carriers - Emirates and Air Asia - have cut fares for Indian travellers so as to beat the March quarter blues. Gulf carrier Emirates announced special fares starting Rs 41,867 for economy, and Rs 1.14 lakh for business class from India to Europe, Africa and South America for Indian travellers. Malaysia-based Air Asia too rolled out similar offers. Emirates said its offer is part of India's Republic Day celebrations and commences from today. It is valid for travel up to April 10 and can be booked both on and offline. AirAsia announced all-inclusive fares of low as Rs 4,000 from Kochi, Kolkata and Tiruchirappalli to Kuala Lumpur and called its special offer as 'Valentine Day' fares. As part of the discounted fares offer, travel from Chennai and Bangalore to Kuala Lumpur will now cost only Rs 6,499 inclusive of taxes, the airline said in a release. Explore romantic honeymoon destinations such as Johor Bahru, Kuala Terengganu, Penang, Langkawi from Kuala Lumpur for all-inclusive-fare for just Rs 724, the release said adding, the bookings under the offer can be made from February 2 for travel up to July 31. Flyers, who had been paying through the nose for tickets had a big relief this week with top airlines, including state- run Air India, slashing fares by as much as 50 per cent for a limited time to fill the vacant seats in a traditionally weak January-March quarter. The move was triggered by budget carrier SpiceJet, which reduced fares by 50 per cent but was soon copied by all other domestic players -- Air India, indiGo, GoAir and Jet Airways.

NOOYI RECOLLECTS MEMORIES

In the midst of business talks and meetings, India-born Indra Nooyi today recalled how her views underwent a sea change after a visit to her mother in Chennai soon after she became PepsiCo chief in 2006. While talking about the need for CEOs to engage and bond with the employees at a personal level, Nooyi said, "When I became CEO in 2006, I went to visit my mother in Chennai. The next morning she asked me to wake up and I said I am on vacation and want to sleep till noon, but she refused and said people were coming home". "When friends and relatives came, they all told my mother that she had got a great daughter. But it is not about me, but about my parents who brought me up so well," Nooyi said. Nooyi, who is PepsiCo's Chairman and CEO, is here to participate in the World Economic Forum (WEF) annual meeting. "So when I came back, I wrote to parents of all my directors thanking them for bringing up their respective children so well that I got them as directors. It was an emotional decision and all of them replied very emotionally," she said. Narrating another incident, Nooyi said there was an individual whom the company was trying to hire but he had another offer. Since the company was very keen on hiring him, Nooyi said she spoke to the individual's mother. "I called her (his mother) and when he went home, he told her mother he had two offers but he would not join PepsiCo. But her mother insisted that he should join PepsiCo and he had to join us," she said, leaving the audience totally amused and sending the audience into peals of laughter. According to the PepsiCo chief, it is bad to see that parents today pay tuition fees for their children, but do not see their report cards. "I have always insisted on getting the report cards," she said. Talking about the young population, Nooyi said she has got two of them at home and this generation is well-informed. "I hear my own daughters talking about big companies polluting the environment and then I realise they are talking about companies of which one I am running. "But when I tell them to read the things we are doing, then they realise we are doing good things. But millennials are really a great lot," she observed. On social media, Nooyi said it has actually made things worse for the public life of people. "Someone told me that whatever you do, will be in public domain. It is not easy to accept that whenever we go out, we have to be always conscious about what we are talking, what we are doing, what we are wearing. "It is not easy living in that little glass house. Many people on social media do not have accountability. All of us CEOs are learning to live in this environment, as this is the real life today. It is like a reality show for all of us," she said.

COUTIOUSNESS AHEAD RBI POLICY...

Inputs by

Dr.Bhuvanagiri Amaranatha Sastry

Astro Technical Analyst

Saketha Consultants, Hyderabad

sastry.saaketa@gmail.com

09848014561

Nifty fell sharply erasing the weekly gains of earlier Four days and closed nearly flat for the week. Once again it closed below 6300 mark unable to decisively pierce the strong resistance zone of 6350. PSU Banks and rate sensitive stocks were nervous ahead of RBI Policy early next week. Nifty spot is expected to encounter resistance at 6305, 6340 and find support at 6225, 6190, for Monday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to be cautious ahead of RBI policy with subdued forenoon session and mild recovery towards close.

Nifty                               6267     -79

Review for Friday, 24th January, 2014 ::  All round Bearishness.... !!

Market opened weak following global cues and after initial pullback, it cracked sharply and could not bounce back and finally closed with a loss of about 1% and gave up all the weekly gains and ended flat for the week. 42 of Nifty stocks ended in the red and broader market too was quite bearish with Advance Decline ratio at about 1:3. All sectoral indices fell led by PSU Bank, Realty, Metal, FMCG and Media. Ranbaxy fell by about 19% following adverse news. JP Associates, PNB, Ambuja Cement, DLF and Bank of Baroda were the other major losers among Nifty stocks whil;e Asian Paints, NMDC, NTPC, Grasim and HCL Tech remained gainers.

Among F&O stocks M&M Finance, Dabur, Asian Paints, NMDC     gained while Ranbaxy, Biocon, PFC, Bank of India, Orient Bank   declined .

KERALA WINS WORLD TOURISM AWARD

Kerala Tourism has been conferred the United Nations Award for creating innovative initiatives for sustainable tourism, the first time India has ever won the recognition. The state lifted the coveted honour for its sustainable development initiative in the world renowned backwater resort of Kumarakom, a Kerala tourism release said today. Kerala Tourism bagged the honour yesterday at the annual United Nations World Tourism Organisation (UNWTO) Awards for Excellence and Innovation in Tourism presented at Madrid in Spain. Kerala won the UNWTO Ulysses Award for Innovation in Public Policy and Governance, the highest honour given to the government bodies for shaping global tourism policies through innovative initiatives. Kerala Tourism was chosen for the honour for its path-breaking 'Responsible Tourism' project in Kumarakom, which has successfully linked the local community with the Hospitality industry and government departments, thereby creating a model for empowerment and development of the people in the area while sustaining eco-friendly tourism. The Kumarakom initiative had earlier won the National Award for Best Rural Tourism Project in March last year and also the PATA Grand Award for Environment. "Kerala, a popular ecotourism destination, portrays responsible and sustainable tourism in an exceptional manner," said UNWTO Secretary-General, Taleb Rifai, at the awards ceremony. Last year, the Ministry of Tourism of Malaysia had won the UNWTO Ulysses Award for Innovation in Public Policy and Governance for its Homestay Experience Programme. Previous winners in the category include Peru, Portugal and China. Instituted in 2003 by UNWTO, the United Nations agency for the promotion of responsible, sustainable and universally accessible tourism, the UNWTO Awards showcase innovation and application of knowledge in tourism with the aim of effecting governance and society. UNWTO Ulysses Award for Innovation was given in four categories --- Public Policy and Governance; Enterprises and NGOs; Research and Technology. Two other categories – UNWTO Ulysses Prize and UNWTO Award for Lifetime Achievement recognise individual contributions. "We are humbled by the UNWTO's decision to confer this highest international award on our state," said Kerala Tourism Minister A P Anilkumar. "It is a recognition of our continuing efforts to sustain global tourism, which can progress only if we consider the local community as our biggest partner," he added. 

NIFTY OUTLOOK FOR 24th & REVIEW

SECOND HALF BETTER...

Inputs by
Dr.Bhuvanagiri Amaranatha Sastry
Astro Technical Analyst
Saketha Consultants, Hyderabad
sastry.saaketa@gmail.com
09848014561

One more positive day with Nifty crawling and  holding above 6300 mark for the Fourth  day in succession. It is at the upper end of the range of 6350 and appears set to cross the same ahead of crucial RBI policy early next week. Nifty spot is expected to encounter resistance at 6385, 6420 and find support at 6305, 6270, for Friday. While Global cues, Q3 results,  and  Funds flow  are expected to broadly guide the market movement, based on the present market position , market can be expected to be generally subdued in the forenoon session and could remain relatively better in the afternoon session.

 Nifty                               6346     +7

Review for Thursday, 23rd January, 2014 ::  Flat Close with Bullish Bias.. !!

After subdued opening session, market slowly and steadily went up to close with minor gain. 25 of Nifty stocks closed in the green but  broader market  was negative  with Advance Decline ratio at 1: 1.25.  Infra, Pharmaand FMCG indices gained while Auto, Energy, Realty and Metal indices declined.L&T, Jindal Steel, Axis Bank, Sun Pharma and GAIL  remained as major gainers among Nifty stocks while M&M, HCL Tech, ONGC, PNB and Coal India remained major losers.

Among Heavy weight stocks, L&T contributed positively to Nifty following encouraging Q3 results. M&M Finance and Biocon fell following disappointing results.

Among F&O stocks Adani Enterprises, UBL, Titan, L&T, UCO Bank and Axis Bank     gained with higher Open Interest indicating fresh long positions while M&M Finance, Biocon, Jain Irrigation, UPL, M&M   declined with higher Open Interest suggesting fresh short positions.

SENSEX CLOSE @ RECORD HIGH FOR SECOND DAY

The BSE benchmark Sensex today scaled a new high of 21,373.66 today by gaining 36 points on buying in select stocks in an otherwise lacklustre trade. This is for the second successive day that the key index is hitting record high level. Yesterday, the barometer rose by 87 points to close at all-time high of 21,337.67. The 50-issue Nifty of NSE settled at 6,345.65, up by 6.70 points or 0.11 per cent. Its record all-time closing high was 6,363.90, registered on December 9, 2013.
A smart rise in heavyweights like L&T, HDFC, Infosys, Axis Bank, Sun Pharma, ITC, Bharati Airtel and GAIL India helped the Sensex to log its historical closing high and extent gains for the fourth straight trading day in a row. The 30-issue bellwether index initially dipped to a low of 21,264.71 on weak Asian cues, but gradually recovered after mid-session and crossed 21,400-mark. It was just 74 points short of its life-time intra-day high of 21,483.74, recorded on December 9, 2013. Finally, the Sensex closed higher by 35.99 points or 0.17 per cent at 21,373.66.
Larsen and Toubro (L&T) was the most sought after stock after the company reported a 22.44 per cent rise in standalone net profit for the December quarter. The construction and engineering giant was the top Sensex gainer at 2.81 per cent.
Though the Sensex is setting new closing records, the second rank counters underperformed the index, mainly due to profit-booking by wary retail investors at higher levels. The BSE-Midcap and Smallcap indices closed down by 0.48 per cent and 0.12 per cent respectively.

MF's INCREASE INVESTMENT IN BANKING

Fund managers exposure in banking stocks rose to a six-month high of over Rs 34,000 crore in December on account of rise in equity market and various steps taken by the RBI to prop the banking sector. According to the latest data available with market regulator Sebi, mutual fund investments in banking stocks in December 2013 reached Rs 34,153 crore, accounting for 17.66 per cent of their total equity assets under management (AUM) of Rs 1.93 lakh crore.
This was the highest level since June 2013, when fund managers had shored up their investment in banking stocks to Rs 35,442 crore.
In November 2013, mutual fund's exposure in banking stocks was at Rs 32,417 crore.
Market participants said MFs have shown interest in banking stocks during the September-December period, primarily on account of measures announced by the RBI coupled with overall surge in the stock market. The banking index (bankex) surged 2.13 per cent in December, while the 30-scrip BSE sensitive index (Sensex) rose 1.82 per cent. In September, new RBI Governor Raghuram Rajan took steps to stabilise the rupee and also announced various measures to liberalise the banking system, including higher overseas borrowing limits for lenders and simpler processes for opening branches. The banking sector was followed by IT, where mutual fund investments stood at Rs 26,762 crore. Pharma stocks accounted for Rs 15,603 crore, while consumer non-durables attracted Rs 13,186 crore and petroleum segment Rs 10,045 crore. Mutual funds are investment vehicles made up of a pool of funds collected from a large number of investors. These funds invest in stocks, bonds, money market instruments and similar assets. 

ANDROID POWERED TABLET FOR TODDLERS

Educational solutions start-up Metis Learning today launched an Android 4.2-powered tablet targeting kids aged 2-10 years and focusing on educator selected learning content. Eddy, which the firm claims is India's first Android- powered kids learning tablet, is being offered at an introductory price of Rs 9,999 till February 20th and at present is exclusively available on Amazon.com and the start-ups website eddytablet.com. Speaking at the launch, Metis Learning CEO Bharat Gulia said: "India is a huge potential market for tablets and the country saw the sale of about 4.5 million units last year. The kids tablet space has a potential of about 450,000 units (rpt) 450,000 units."
Eddy is the only tablet to map school curriculum to games and has been designed by a team with over 100 years of combined experience, he added.
On being asked about the units it plans to sell, Gulia said: "We expect to sell about 50,000 units in the first year." The 7-inch screen tablet sports a 1.6 GhZ dual core processor with 1 GB RAM and an internal memory of 8 GB, which can be expanded to 32 GM with a micro SD card. A 3200 mAH battery ensures more than 4 hours of continuous usage time on full charge.
The tablet has been manufactured in China, Gulia said.
"Eddy is set to usher a new paradigm for early year's education in India with its concept of game-based learning," he added. Children can read books, learn to play the piano, explore the world and the universe as well as practice math through games on Eddy, he added.
The team of seasoned educators and experts behind Eddy have ensured that only games which are highly engaging, violence-free and enjoyable for children are selected.
Parents also have access to over 50,000 educational apps on Google Play store. Eddy also comes with an exclusive recommendation engine for parents, the Kids Radar, which recommends the most suitable learning apps for their kids on the Play store.