10 Stocks-- MANY LOSERS NOT LISTED.....!!!

10 stocks that destroyed Rs 6,86,559 crore
By Babar Zaidi & Sameer Bhardwaj, ET Bureau | 19 Aug, 2013, 08.00AM IST
If you are fretting that your stocks have not yielded any gains since the 2008 crash, here's some cold comfort. A study by ET Wealth shows that the 10 biggest wealth destroyers have lost 75-98% of their value since January 2008. Their combined marketcapitalisation, or the value of the total number of shares, dropped 87% from Rs7,89,597 crore on 8 January 2008 to Rs1,03,038 crore on 8 August 2013.These 10 stocks are not obscure, smallcap scrips, but widely held large- and midcap companies. At least three of them—DLF, Bhel and JP Associates—are constituents of the 50-share benchmark, Nifty. Others find a place in broader market indices or sectoral benchmarks. The losses have been mindboggling. After the dotcom bubble burst, the market capitalisation of all the companies listed on the BSE declined by Rs 5,88,402 crore, dropping from Rs 10,45,965 crore in February 2000 to Rs 4,57,563 crore in September 2001. However, these 10 stocks alone have exceeded that figure, losing Rs 6,86,559 crore since January 2008.
The usual suspectsMost of these wealth destroyers are from the real estate, infrastructure and capital goods sectors. All three sectors have been battered in the past five years. The CNX Real Estate index fell 85%, while the CNX Infrastructure index dropped 66% between 8 January 2008 and 8 August 2013.
Real estate developer DLFBSE 3.67 % has been the biggest wealth destroyer, with a drop of Rs 1,71,590 crore in its market capitalisation. This loss is more than the total market capitalisation of software giant, InfosysBSE 0.05 %. The drop in the value of Reliance CommunicationsBSE 0.63 % surpasses the total market capitalisation of its biggest rival,Bharti AirtelBSE 0.43 %. The combined losses of Bhel and UnitechBSE 8.64 % are big enough to buy the five biggest PSU banks, including the SBIBSE 1.51 %, Bank of BarodaBSE 0.30 %, PNBBSE -0.36 %, Canara BankBSE 3.26 % and Bank of India.
However, many investors have not reacted to this wealth erosion because it has happened gradually over five painful years. In the interim, shares must have changed hands, and very few of the investors who owned these shares in January 2008 would still be holding them. For some, there was an opportunity to exit in 2010, when the markets were upbeat, and again, early this year.
Given this massive decline, should you buy these stocks? As our cover story argues, just because a stock is trading at a historical low does not make it a good buy.
Promoters the biggest losersTo be fair, individual investors did not bear the brunt of this huge erosion in value. The company promoters, who controlled the largest chunk of the equity, were the biggest losers. Tata Communications, for instance, saw its capitalisation drop by Rs 15,235 crore, but the loss to individual investors was only Rs 341 crore. However, in the case of some other companies, such as IVRCL, which is not in the top 10 wealth destroyers, the promoters held less than 10% of the total equity.
The company lost Rs 6,658 crore of market capitalisation, but the bulk of this loss (Rs 5,516 crore) was borne by institutional investors, including FIIs, mutual funds, insurance companies and banks. They accounted for 22% of the total loss of market capitalisation, while individual investors lost around 5.5%. However, some of the losses of institutional investors are actually those of small investors in mutual funds, Ulips and pension plans.
Avoiding lossesCould these losses have been avoided? While the promoters had little option, individual investors could have taken steps to minimise them. For one, it is always advisable to set a limit to the loss you are willing to take. Small investors tend to sell their winners too early, but hold on to losers for far too long. This is what happened in case of realty stocks, where investors clung on to their investments in the vain hope that they would recoup their losses some day. However, the real estate stocks just kept plunging to new depths and the losses kept piling. The lesson for investors is not to get emotionally attached to a certain price level. Learn to cut your losses and exit if the tide has turned.
A bigger learning is to stay away from momentum stocks. At the height of the irrational exuberance of 2007, infrastructure was a buzzword for mega gains. Investors were blindly putting money in infrastructure stocks without assessing the sector's potential or checking valuations. This herd mentality should be avoided at all cost. Don't buy a stock just because everyone else is doing so. Invest only after careful research and evaluation of the company's financials. The real estate sector is a prime example of how valuations can be easily inflated.
Diversify your investments, not only across sectors and stocks, but also across time. Equity mutual funds are a readymade solution for such diversification. They invest in a basket of 25-30 stocks across 7-8 sectors, cushioning the investment against a possible downturn in a stock or sector. The SIP is a diversification across time and should be used to bring down the average purchase price.
http://economictimes.indiatimes.com/markets/stocks/stocks-in-news/10-stocks-that-destroyed-rs-686559-crore/articleshow/21877464.cms?curpg=2

ENJOY THE MARKET FALL...!!!!!!!!!

THE NIFTY IS DIVED FROM 6080 TO 5485 LEVEL, BUT COULD CREEP TO 5750 LEVEL. YETERDAY NOSE DIVED TO 5490 LEVEL. THE EROSION OF NIFTY LEVEL IS MASSIVE FOR A DAY TRADER WHERE AS THE OVER ALL PRAGMATIC VIEW PROVIDES A BUYING OPPORTUNITY TO LONG TERM INVESTORS. THE NIFTY HAS EXCELLENT SUPPORT AT 5250-5285 LEVEL. SO I PERSONALLY CONSIDER THET THE NIFTY FLOATING ABOVE 5335 LEVEL IS FAVING BULLS TO ACCUMULATE.

THE NIFTY HAS CORRECTED ONLY BECAUSE OF CAD AND BANKS FUTURE NPA PROBLEMS. THE INSTITUTIONAL INVESTORS WITH A GOOD LONG TERM VIEW CANNOT AFFORD TO SELL RELIANCE BELOW 809 LEVEL BECAUSE THE PRICE REVISION FOR THE GAS HAS DOBLED AND THE PROFITS SOAR FROM APRIL-2014. THE TCS AND INFY ARE FOR THAT MATTER THE TECHS WILL ENJOY THE WINDFALL GAINS AND THE LONGTERM CONTRACTS OF SOFTWARE SERVICES DUE TO RUPEE DEPRECIATION. SO IS THE CASE WITHEMERGING PHARMA LOTS. THE MINING EXPORTERS AND STEEL EXPORTERS ALSO ENJOY THE RUPEE FALL.

BY THE WAY….WHO IS BUYING INFOSYS, TCS AND TECHMAHINDRA, ANY WAY…???. THE DEEP POCKETED HNI AND INSTITUTIONAL INVESTORS WHO ARE MORE CONCERNED ABOUT THE SUSTAINED GROWTH AND DEVIDEND. THE CAPITAL SAFETY AND INREMENTAL GROWTH ARE ASSURED TO THOSE INVESTORS.

THE TATAMOTORS HAS NOW BECOME AN EXPORT ORIENTED COMPANY DUE TO JLR SALES. THE MAHINDRA CASE IS FAVOUABLE DUE TO TRACTOR SALES AND THEIR NEW PRODUCT LAUNCEHES. THE OTHER AUTO STOCKS LIKE HERO AND BAJAJ ARE FAVOURED DUE TO THEIR EXPORT PERFORMANCE AND NEW LAUNCHES.THE ONGC ENJOYS PRICE AT THE IMPORT PRICE OF OIL IN DOLLAR TERMS. THE OTHER STOCKS ARE NUETRAL.

NOW THE CHALLENGE IS COMING FROM THE BANKING SECTOR. THE HDFC AND HDFC BANK ARE NOE PARTICIPATING IN THE FALL. I BELIEVE THESE CAN ADD TO FALL BUT THE RECOVERY WILL BE SHARP DUE TO THEIR HIGH LEVEL OF PATRONAGE FROM FIIs. THE ICICI IS A NUTRAL CANDIDATE FAVOURS BOTH THE BULLS AND BEARS.

THE REAL PROBLEM COMING FROM SBI, PNB, BANK BARODA AND OTHER PSU BANKING LOTS. WHERE THE BLAME GAME ALREADY STARTED AMONG THE 3-SUBBARAO, CHIDAMABRAM AND PM-SING. THIS WILL NOW ADD PRESSURE ON THE NEW RBI CHIEF, FORCE HIM TO DANCE TO THEIR TUNES. THE FIIs ARE ALSO TAKING THE ADVANTAGE OF HAMMERING THE MARKETS TO GET DUE FAVOURS AT AN ERALY DATE. THE PRESSURE GAME IS ON….AS A MATTER OF FACT IT IS ALWAYS THERE AND WILL BE THERE.

SO THE CONCLUSION IS SO LONG RELIANCE TRADES ABOVE 793 LEVEL THE MARKETS ARE IN BULL GRIP. FOR AN INVESTOR IT IS AN OPPORTUNITY BUT FOR A TRADER ANYTHING IS OK…ENJOY THE MARKET FALL WITH A VIEW LIKE AN INVESTOR AND AS A TRADER BY STAYING WITH THE TREND…..

...GOING IS BAD...!!! BLAME ON.....??????????

Prime Minister Manmohan Singh, D Subbarao spar over RBI's policies

By TNN & Agencies | 18 Aug, 2013, 02.59AM IST

NEW DELHI: Tensions between the government and outgoing RBI governor D Subbarao came out in the open on Saturday as Prime Minister Manmohan Singh called for "fresh thinking" on macroeconomic policy and suggested the central bank narrow its focus. The PM on Saturday seemed to throw his weight behind finance minister P Chidambaram who has been insisting that RBI must not interpret its mandate solely in terms of inflation control and needs to be more attentive to the government's growth priorities. "I would venture to think the time has come when we should revisit the possibilities and limitations of monetary policy in a globalized economy, in a fiscally constrained economy," Singh said at a function to release a history of the RBI, where the governor was in audience. Interestingly, Subbarao used the occasion to stoutly rebut criticism of being insensitive to growth, saying it is "inaccurate and unfair" to contend RBI was "obsessed with inflation, oblivious to growth concerns". TAMING INFLATION Subbarao argued that the RBI was focused on taming inflation precisely because it was bothered about growth. "There is any amount of evidence to show an environment of low and stable inflation is a necessary precondition for sustainable growth," he said. While Subbarao called the growth versus inflation debate an "over simplification", Singh drew on his own experience as RBI governor to stress monetary policy needed to evolve, saying a redefinition of policy goals he initiated in the 80s had proved to be relevant. Elaborating his thoughts, the PM said, "... macro-economic policy-making, targets and instruments, I think, is another area, where I feel fresh thinking is called for, and I sincerely hope governors of the future, particularly Dr Raghuram Rajan, will attempt to revisit some of these difficult areas." As slipping growth accentuated the government's political problems over the last year, thefinance ministry and the RBI have found themselves increasingly at odds as the ruling coalition looked to the central bank to reduce interest rates to provide a fillip to investment. Subbarao, who demits office on September 4, said the view that governments are for growth and central banks are for price stability is a simplification and while he has said so earlier as well, it was significant that he chose to make the point again in the presence of the PM at Saturday's function.http://economictimes.indiatimes.com/news/economy/policy/prime-minister-manmohan-singh-d-subbarao-spar-over-rbis-policies/articleshow/21888275.cms

NOW BLAME THE "GOVERNANCE"..?????

PM freed country of shackles in 1991 only to bring them back in 2014By Bibek Debroy, ET Bureau | 17 Aug, 2013, 10.40AM IST

Carpe diem - seize the day! That was Horace. By any indicator, the economy was healthier in 2004 - 8 to 9% growth, with speculation about it creeping up to double digits and overtaking the Chinese figure. India was one of the bricks in BRIC, not Indonesia. We needed growth for poverty reduction. Debate over poverty lines notwithstanding, if head count ratios are lower in 2011-12, growth is responsible. We needed growth to generate government revenue, revenue being required for social sector expenditure. But growth wasn't guaranteed. It needed nurturing. By 2004, because of earlier reforms, manufacturing was freed of licensing. Private investment and consumption expenditure thrived, courtesy low fiscal deficits and interest rates. Road and telecom connectivity improved. Banking and civil aviation were liberalized. Health and education indicators began to improve and there was VAT, a stepping stone for GST. The agenda should have been clear, further liberalization and reforms. No reforms are zero sum. That's a myth. Liberalization hurts some segments, even if there are net overall gains. That's precisely the reason one reforms when the going is good. One seizes the day. If not, the night eventually seizes you. Those reforms aren't about FDI in pensions, insurance, civil aviation and retail alone, or Chapter V-B of the Industrial Disputes Act. Even with a "socialist" agenda, there was plenty to do - agriculture, service sectors, efficiency of government expenditure, decentralization, non-manufacturing industry, judicial systems, non-telecom infrastructure. PM is primus inter pares. He is much more than that. PMO is not quite a Project Management Office. Coalitions are a fact of life, as are state governments headed by political parties not part of the ruling Delhi dispensation. With a PM willing to govern, these can be handled, as can inevitable tussles between various government ministries and departments. But MMS was made of milder stuff. Exhibiting traditional traits of a risk-averse bureaucrat, he desired to out-source governance. This wasn't just NAC, which pre-empted elements of governance. Even when there was no such preemption, MMS outsourced to GoMs and e-GoMs, commissions and committees. Cabinet lost its clout, apart from the kitchen cabinet part. It is impossible to govern such a federal country if the PM cannot pick up the phone and talk to a CM. (Relations with a neighbour have been jeopardized on such an apparently trivial issue.) Did the so-called dream team of 1991 not know basic economics? As a pre-eminent member of the dream team, even if his economic views are more malleable than most, did MMS require a Bhagwati to lecture him on what is no more than common sense? What went wrong? In the barrage of comparisons between NDA and UPA, people tend to club UPA-I and UPA-II together. There's an inherent problem there. All said and done, UPA-I did nothing significant in reforming. There was RTI and MGNREGS, both driven by NAC. But for most of UPA-I, till 2008, there was legacy of high growth. The external environment was benign. Costs of inclusion, such as they were, could be handled. It went horribly wrong thereafter. Yes, there was the whammy of global slowdown. But there was the greater whammy of 2009 elections.We don't do much - the economy seems to chug along. We don't do much (the MGNREGS story was misread) - people vote us back. Why bother to rock the boat? 
Unfortunately, the boat was already in choppy waters and had developed multiple leaks. There were procedural issues, land, forest and environmental clearances. Following the lead set by PM, bureaucrats turned risk-averse. 
Privatization amounted to privatization of public assets. There was increasing state intervention in multiple sectors. Pre-emption by government crowded out resources for private investments and consumption. Presumably, dream team members didn't immediately realize how serious it was. Consequently, successive pronouncements on how good growth and inflation numbers were soon going to be - became objects of ridicule. Indeed, government became an object of ridicule. Meanwhile, an increasingly young and urban India poured its angst out onto the streets. The trigger may have been corruption and sexual offences. But underlying this was expectation of high growth, jobs, low inflation. All these took a hit. By any indicator, the economy is back to 1991 crisis levels. There's the IMF, as a back-up or packup plan. The nightmare team has pushed the clock back by 12 years. In this mess, as primus inter pares, primary culpability is with MMS. He is a silent man. But he has a lot to be silent about and a lot to answer for. There is no longer a P.V. Narasimha Rao to provide direction and leadership. Though one job has been preserved, in general, there is neither growth, nor jobs. The minor flurry over the last 6 months cannot swiftly undo damage of 10 years. What will be the MMS legacy? As a general principle of an individual's development, you build on your strengths. Contrary to what is suggested, you don't try to plug your weaknesses. That's a no-brainer. The MMS legacy should have been in economics. That's what he knows about. But that's what he ignored and failed to tap and build. Therefore, posterity will remember him as someone who, goaded by PVNR, freed the shackles in 1991 and brought them back in 2014. The wheel has come full circle and the sense of deja vu is inevitable. Meanwhile, MMS has set his heart on foreign policy (interpreted mostly as a non-policy vis-avis Pakistan) and what a mess there has been with all our neighbours, more than one volunteering to undertake excursions (or is it incursions?) into Indian territory. Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, China - the list is long. The crisis isn't economic alone. Perhaps one should have the complete Horace quote. "Don't ask what end the gods have granted to me or you...While we speak, envious time will have fled: seize the day, trusting as little as possible in the next." One decade of MMS time has fled and there is little to envy him for. The gods did grant him an opportunity. But he chose to squander it. (The author is onsulting Editor, ET)http://economictimes.indiatimes.com/opinion/comments-analysis/pm-freed-country-of-shackles-in-1991-only-to-bring-them-back-in-2014/articleshow/21875467.cms?curpg=2

5500 may come under threat!!!!

Market is going through tectonic shift; 5500 may come under threat
By ECONOMICTIMES.COM | 16 Aug, 2013, 01.24PM IST
NEW DELHI: After rallying for four-days,Indian markets came under intense selling pressure on the last trading day of the week weighed down by the weakness in currency. Levels of 5500 on the Nifty, which is still considered a strong support for the index, may come under threat if rupee continues to depreciate against the dollar, say analysts. "The view is very clear that level of 5500 still hold a strong support for the Nifty. In past we have seen many times, markets bouncing back from this level; however the intensity of the bounce is getting lower and lower," saidAshwani Gujral of ashwanigujral.com."There is a tectonic shift that is happening in the markets because of the weakness in rupee. Chances are rupee should head lower towards 64 and that should lead to a breaking of this 5500 to 6100 zone on the downside," he added.Gujral is of the view that the more the government/RBI try's to fight the rupee, chances are it will go lower and lower. So this is a fairly difficult situation and chances are that 5500 may not hold for a long time, he added.Most analysts are of the view that it will take some time for the rupee to reverse and we could enter a lower range which is 4800 to about 5500 on the Nifty in the days to come andSensex should be able to find support around 18000 levels.So what is causing all the panic in markets?Rupee is one factor which is causing trader community to turn cautious on markets and the other could be fresh worries on rollback of $85 billion U.S. monetary stimulus earlier than expected.The rupee could not manage to hold onto gains and slipped to hit its fresh record low of 62.03 against the dollar on concerns that recent measure announced by the Reserve Bank of India may prove insufficient and on worries.Overnight, US stocks corrected sharply after upbeat U.S. jobs claims data and rising consumer prices suggest a winding back of the Fed's $85 billion a month bond buying could start as soon as next month."US Fed is preparing for a tapering off the current bond buyback programme and all that means is that is not good news for emerging markets, particularly with large current account deficit which includes India of course," said Sanjeev Prasad, Kotak Institutional Equities in an interview with ET Now.So where is the market headed from here, if US tapers its bond buying programe?According to experts, markets will certainly face some bit of more selling pressure and key support level on benchmark indices may come under threat.Today's fall of 500 points (intraday) could be the beginning of bear phase and generally a bad Friday leads to a bad Monday so all this people should keep in mind, added Gujral."It will be extremely difficult to pin point the market direction because we have not trended in a particular direction. Yes there is some sectoral rotation is happening within the 5500-6000 rage," said Manish Sonthalia, VP & Fund Manager, Motilal Oswal Asset Management-PMS in an interview with ET Now."Level of 5500 on the Nifty seems to be a floor as of now unless and until we saw massive exodus of dollars on the back of US tapering," he added.Sonthalia is of the view that the level US Fed's tapering of bond buying programe remains a worry for the month of September also, because yields on US treasury are starting to move up and there could be a big movement of foreign currency out of the country.Where can one invest?In times like these, when bears have an upper hand in the market; analysts see some value in FMCG, IT, capital goods and autos where 'alpha' can be generated."For the near term -- maybe over next one month or one quarter, India would continue to underperform," said Manishi Raychaudhuri, MD & HoR, BNP Paribas Securities in an interview with ET Now. "Having said that for an investor who has a genuinely long term outlook, there are a few companies even in the domestic cyclical space which are appearing attractive as a consequence of this decline," he added. Raychaudhuri is of the view that private sector banks, such as HDFC, HDFC Bank,ICICI Bank which are down about 15 per cent look attractive. There are some front line engineering companies like L&T that is down about 20% can be bought.Investors can focus on quality names which now looks attractive after recent correction in markets. IT services, pharmaceuticals, consumer staples have been relatively steady.Mahindra & Mahindra for example which is likely to benefit from the support to rural consumption that is coming through but is down about 15 per cent, added Raychaudhuri.

http://economictimes.indiatimes.com/markets/analysis/market-is-going-through-tectonic-shift-5500-may-come-under-threat/articleshow/21857342.cms?curpg=2

Bloodbath on Dalal Street....!!!!!!

SI Reporter  |  Mumbai  August 16, 2013 Last Updated at 16:09 ISTBloodbath on Dalal Street; Investors lose Rs 2.2 lakh cr
Sensex tanks 769 points, biggest fall in four yearsThe Bombay Stocks Exchange S&P BSE Sensex plunged by over 750 points, or 4%, its biggest fall in four years, to end at 18,598 on fear that the roll-back of US stimulus could spark selling pressure by the overseas investors in the equity space.The stock markets were also under heavy pressure after the rupee touched a lifetime low of 62.01 against the dollar in morning deals.It was the Sensex’s biggest single-day fall since July 2009. Across market, around 1,583 stocks fell and just 729 rose. Investor wealth worth Rs 221,268 lakh crore was eroded in today's fall. The four BSE sectoral indices - consumer durables, realty, metal and bankex plunged more than 5% each, while capital goods, oil and gas, power and fast moving consumer goods (FMCG) were down between 4-5%.Bharat Heavy Electrical Limited (BHEL), YES Bank, Reliance Communications, Titan Industries, Jaiprakash Associates, BF Utilities, Ruchi Soya Industries and Punj Lloyd tanked over 10% each.Markets fell sharply on continuing concerns over the depreciating rupee and tapering of the monetary stimulus by US Fed, says Dipen Shah, Head of Private Client Group Research, Kotak Securities.BHEL tanked nearly 11% to Rs 106, its lowest level since October 2005, on concerns of slowdown in economy may drag their net profit growth further. Axis Bank lost 8% at Rs 1,055 after MSCI said it would exclude the stock from its standard and large cap indices with effect from 2 September, 2013. The broad-based National Stock Exchange index Nifty dipped below the levels of 5,550, losing 234 points, or 4%, to close at 5,507.85.TOP FIVE FALLS17,605, 21 January 2008: The Sensex saw its highest ever loss of 1,408 points at the end of the session on Monday.  The Sensex recovered to close at 17,605.40 after it tumbled to the day's low of 16,963.96, on high volatility as investors panicked following weak global cues amid fears of the US recession.8,701, 24 October 2008: The Sensex lost 10.96% of its value (1070.63 points) in intra-day trade, closing at 8,701.07, for its first close below the 9,000 mark since 14 June 2006, after RBI lowered its GDP growth forecasts on global economic concerns. The loss was the 2nd highest in terms of total points, and the 3rd highest percentage-wise, for a one day period in the index's history.14,810, 17 March 2008 - The Sensex dropped by 951.03 points on the global credit crisis and distress, to fall below the 15,000 mark, closing at 14,810.The month ended with the Sensex shedding 726.85 points on 31 March 2008, after heavy selling in blue-chip stocks on global economic fears.16,678, 3 March 2008 - The Sensex lost 901 points on concerns emanating from growing credit losses in the US. This was the first of four one-day falls of greater than 700 points during the month.16,730, 22 January 2008 - The Sensex lost 875 points on high volatility as investors panicked following weak global cues amid fears of a recession in the US.

Top biggest falls in Sensex history
Date	S&P BSE-Sensex	Change	CNX Nifty	Change
21/01/2008	17605.35	-1408.35	5208.80	-496.50
24/10/2008	8701.07	-1070.63	2584.00	-359.15
17/03/2008	14809.49	-951.03	4503.10	-242.70
03/03/2008	16677.88	-900.84	4953.00	-270.50
22/01/2008	16729.94	-875.41	4899.30	-309.50
06/07/2009	14043.40	-869.65	4165.70	-258.55
11/02/2008	16630.91	-833.98	4857.00	-263.35
18/05/2006	11391.43	-826.38	3388.90	-246.20
10/10/2008	10527.85	-800.51	3279.95	-233.70
13/03/2008	15357.35	-770.63	4623.60	-248.40
17/12/2007	19261.35	-769.48	5777.00	-270.70
16/08/2013	18598.18	-769.41	5507.85	-234.45

http://www.business-standard.com/article/markets/bloodbath-on-dalal-street-investors-lose-rs-2-2-lakh-cr-113081600506_1.html

Indian equities ..INVEST FOR LONG TERM...!!

It's right time to pick Indian equities for long term: Report

Boston Company Asset Management says the country appears poised for a rebound Increasing investments in infrastructure, favourable demographics and progress in economic reforms could help Indian equities get higher returns over the long term, an investment management firm said today. "The country appears poised for a rebound. Considering the government's agenda for reform, Indian equities have become increasingly attractive for the long-term investor," Boston CompanyAsset Management said in a report here. India's large young population, which should support long-term consumer demand and overall economic expansion, its expertise in business services, software and generic-pharma development make it a global outsourcing centre, it said. The country's diversified, liquid equity market provides more opportunity for overseas investors to buy local stocks, the firm maintained. "Most importantly, India boasts of a large working-age population that will drive expansion through personal consumption. Unlike China and many developed nations, India is not grappling with an ageing population that will need substantial societal support." Other potential drivers that could help Asia's third-largest economy to expand are urbanisation, which could significantly boost housing and transportation, improving rural wages, cooperation among parties in the coalition government to pass reforms and potential trade agreements to improve exports, the report noted. However, factors that could drive the country's growth have been overshadowed by investor concerns over negative issues such as a fragmented government, widening current account and fiscal deficit, power shortage, poor roads and deteriorating margins in many business sectors, it said.http://www.business-standard.com/article/markets/it-s-right-time-to-pick-indian-equities-for-long-term-report-113081500885_1.html

NIFTY-CONSUMPTION & EXPORTS FAVOURED

Consumption, export-led sectors made Nifty resilient: Crisil
However, the report says the index does not reflect the current state of the economy and convey the worsening macro-economic situationDespite a slowing economy, the CNX Nifty index is showing resilience due to the weightage of consumption and export-oriented sectors, which have performed well in the past five years, Crisil said in a report today. "The changing dominance and outperformance by a few sectors such as consumer staples, consumer discretionary, private sector financials and export-oriented sectors such as IT and pharma in the CNX Nifty is driving the index to January 2008 levels," the rating agency said. The CNX Nifty closed at 5,742.30 on Wednesday. The country's gross domestic product growth fell from sub-9% in FY08 to a decade-low of 5% in the fiscal year ended March 31. The index does not reflect the current state of the economy and convey the worsening macro-economic situation, the report said.Consumption and export-oriented sectors now command a 65% weightage on the Nifty compared with 29% in 2008 due to strong financial performance and increase in valuation over the past five years, it said. In this period, the aggregate PAT of the companies in these sectors has grown at a CAGR of 21.9%, Crisil said. According to Crisil, the weightage of any company or sector in the index is determined by the relative free-float market capitalisation of the constituents.In January 2008, investment-linked sectors such as materials, industrials, energy, utilities and telecom dominated the index with a weightage of 66%.http://www.business-standard.com/article/markets/consumption-export-led-sectors-made-nifty-resilient-crisil-113081500872_1.html

NOW....CSR into business

Plan B: 14 top leaders come together to incorporate CSR into business

By Naren Karunakaran, ET Bureau | 15 Aug, 2013, 06.10AM IST
Debates on corporate sustainability get louder by the day. Enticing monikers for doing good are coined. Codes of conduct proliferate and there is much congratulatory backslapping among CEOs on receiving awards and recognition. What is sorely missing is substantive progress on the ground. 
Now, a plain-speaking, crack team of 14 leaders have ambushed the debate. It's 'The B Team' of global business, and they are beginning to push a 'Plan B' to alter the status quo—the relentless, single-minded pursuit of profits that is endangering the planet and its people. Significantly, on the team's inaugural in June, it began with a confessional that stated: "The overwhelming conclusion that we have reached is that businesses have been a major contributor to the problems and we, as business leaders, have the responsibility of creating sustainable solutions." 
It's acknowledged that Plan A — the current way of doing business — is "broken" and that it's "no longer acceptable" to them. "Where we think we will be different," insistsRichard Branson, chairman of the Virgin Group, to ET, "is that we will mostly focus on action." 
New Business Values 
The mercurial Branson is cofounder of The B Team, along with Jochen Zeitz, who had, in a ground-breaking move, sought to include externalities into his company's balance sheet as head of Puma, the sporting goods manufacturer. He released an environmental profit & loss (EP&L) account, calculating the 2010 environmental impact of his company's operations and supply chain at 145 million (Rs 1,160 crore). Zeitz has been campaigning to reform the regulatory environment that continues with perverse incentives that harm the planet and usher positive incentives that help future bottom lines—maximisation of social, environmental and economic well-being, all together. 
The current financial model and reporting frameworks are almost a century old. The B Team, in keeping with its mandate, therefore constitute doers, action-oriented leaders who are upturning existing business architecture and practices, usually against stiff opposition from the entrenched establishment, and suspicion or curiosity from peers. "Over the past 40 years, corporations are failing faster and faster; there is something going on," explains Bill Drayton of Ashoka, a US-based mentoring organisation for social entrepreneurs that hails the Plan B initiative. 
Businesses have been traditionally organised for efficiency, repetition and bigger scale. "This existing structure is failing," says Drayton, "because it can't deal with a situation of rapid change." Businesses of the future will have to be organised differently. 
The inaugural B Team leaders, selected over a course of years through a robust process, recognise the ongoing churn, the ever-changing circumstances, and are therefore pushing for business reforms in a particular direction. They have articulated three key challenges: the future of leadership; the future of incentives; and the future of bottom lines. "The three challenges also went through an elaborate vetting process," reveals Derek Handley, CEO of The B Team. 
This was primarily to ensure relevance and alignment to The B Team's key criteria: transformative capacity, creation of new models and expectations, scalability, and appropriate for business to tackle. 
Taking The Lead 
The B Team leaders have been already walking the talk for some time now, or as Zetiz likes to say: 'If we don't live our codes, they are just words." Take Paul Polman of Unilever. He is changing the very DNA of his business with the UnileverBSE -0.89 % Sustainable Living Plan (USLP), taking the message even to his over 2 billion consumers. When he started in 2010, he took the risk of offending Wall Street by suspending earnings guidance and quarterly results. "The world's incentive drivers are too short-term," Polman told ET in an earlier interaction. 
"One of the main reasons we believe The B Team needs to exist," says Branson, "is because there is just not enough of the type of action and leadership that Paul and Unilever are taking." 
Ratan Tata in India and Mo Ibrahim across Africa have doggedly focused on governance and the need to address the issue of corruption. Ibrahim, at the kick-off event, insisted "there is no place to hide" and that the sun of transparency is shining all over us. "When everyone knows you don't pay bribes, no one bothers you," he told the gathering, on his experiences of running a telecom behemoth. 
The team also includes Nobel laureate Muhammad Yunus, who has been experimenting with social businesses in collaboration with several MNCs, starting with Group Danone, and later BASF, Veolia Water and Intel. His model of social business is a no-loss, no-dividend company, created to address a specific social problem, in which profits are ploughed back. Investors recoup their core investments over a period of time. "Social businesses are free from expectations and pressures that arise when the payment of dividends constitute a basic condition of the business plan," Yunus told ET in an earlier interaction. Yunus has been advocating the deployment of corporate CSR money to create and run social businesses instead of continuing with the traditional hand-outs way. 
While the B leaders are propounding sustainable, hard-nosed approaches to doing business now, and in the future, some are infusing a dose of spirituality too into the effort— like Strive Masiyiwa and Shari Arison. The planet does need divine intervention. 

Here's a look the the 'Team B' leaders:

RATAN TATA 
Chairman emeritus of the Tata Group comes from a lineage that believes in businesses driven by values and a moral compass. Much of the profits of the $100 billion group flow back into the community as 66% of the holding company is held by philanthropic trusts endowed by members of the Tata family.
SHARI ARISON 
Owner of the Arison Group and Israel's richest woman seeks a spiritual approach to business. Is integrating a 13-point human-oriented, values-based leadership model across her business and philanthropies.
RICHARD BRANSON 
Founder of the Virgin Group, co-founder and co-chair of The B Team is keen on altering the way businesses and the social sector work together to address the humungous challenges facing the world today. 
KATHY CALVIN 
President and CEO of the UN Foundation bring ideas, people and resources together under the UN rubric. Passionate about empowering adolescent girls and the inclusion of women at all levels in all sectors. 
ZHANG YUE 
BROAD Group founder is one of the most outspoken voices in China on environment. Has argued for tighter regulations, especially on building standards, energy efficiency and decentralised power. 
MUHAMMAD YUNUS 
Nobel laureate and founder of Grameen Bank who built and propagated micro-finance, in Bangladesh and across the developing world, is now a votary of social businesses, non-loss, non-dividend companies, created to address social challenges. 
JOCHEN ZEITZ 
B Team co-chair spent 18 years as head of sports goods company Puma. In 2011, he unveiled a path-breaking environmental profit & loss account for Puma to assign a monetary value to a firm's use of ecosystem services across the supply chain. 
STRIVE MASIYIWA 
Founder of Econet, Zimbabwe's largest company by market cap, fought a long legal battle with the government for a telecom licence to the private sector. Involved in a host of social sector programmes and sharing the Christian gospel is a personal driving force. 
ARIANNA HUFFINGTON 
Chair and editor-in-chief of the Huffington Post Media Group launched Huffington Post in 2005, now one of the most popular media brands on the Internet. 
MO IBRAHIM 
Founder of Celtel, one of the most successful mobile phone companies in Africa, spends time to build leadership and encourage good governance. The Ibrahim Index, an effective tool to assess governance, ranks the performance of 53 African countries. 
GUILHERME LEAL 
Founder and co-chairman of Natura Cosmeticos, a Brazilian company with a deep focus on sustainability, has endeavoured to enter electoral politics to push change. He ran, unsuccessfully though, as vice presidential candidate of the Green Party in the 2010 Brazilian elections. 
PAUL POLMAN 
CEO of Unilever has brought the issue of sustainability to corporate mainstream like no one else in recent years by trying to place it onto the agenda of his stakeholders— investors, employees, suppliers, civil society and even consumers. 
NGOZI OKONJO-IWEALA 
Co-ordinating minister of the economy and finance, Nigeria, is a development economist who has had a long stint with the World Bank. She is involved with the newly formed African Risk Capacity, which addresses the risks of climate change in Africa. 
FRANCOIS-HENRI PINAULT 
French billionaire, chairman and CEO of Kering, the fashion conglomerate; owns 17 luxury brands, including Gucci and Yves Saint Laurent. His Foundation works to uphold the dignity and rights of women and combats violence against women. 
naren.karunakaran@timesgroup.com
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