RENEWABLE ENERGY- PROMINENCE !!

India, China led investments in renewable energy in 2015: UN
Press Trust of India/United Nations 26 Mar 16 | 01:02 PMIndia and China led developing countries in investments made in renewable energy in 2015, when for the first time commitments in solar, wind and other renewables capacity by emerging economies surpassed those by wealthy nations, a UN-backed report has said.The report 'Global Trends in Renewable Energy Investment 2016' by the UN Environment Programme said the developing world including China, India and Brazil committed a total of $156 billion in new renewable capacity last year, up 19% on 2014.Investments by developed countries were down 8%in 2015 to $130 billion.The year 2015 was the first time when investment in renewables in developing countries outweighed that in developed economies, the report said.A large part of the record-breaking investment in developing countries took place in China, which lifted its investment by 17%to $102.9 billion, more than a third of global commitments.India was also among the top 10 investing countries in renewable energy, with its commitments rising 22% to $10.2 billion.The US, Japan, UK Brazil, South Africa, Mexico and Chile all made it to the top 10 investing countries in 2015."The investment (in India) took place against a backdrop of pro-renewable policies introduced by India's BJP government. These include a target to almost- triple wind capacity to 60 GW by 2022," the report said.Within the developing-economy category, the "Big Three" of China, India and Brazil saw investment rise 16 %to $ 120.2 billion, while other developing economies enjoyed a 30 %bounce to $ 36.1 billion.Among developed countries, investment in Europe was down 21%, from $62 billion in 2014 to $48.8 billion in 2015, the continent's lowest figure for nine years despite record investments in offshore wind projects.The US was up 19%to $44.1 billion, and in Japan investment was much the same as the previous year at $36.2 billion.The report said India enjoyed a second successive year of increasing investment, breaching the $10 billion for the first time since 2011.It added that the highlight of India's performance in 2015 was a jump in utility-scale solar financings to $4.6 billion, up 75%on the previous year, although still a little below the 2011 record of $4.9 billion.Among the big projects getting the financial go-ahead were the NTPC Kadiri PV plant phase one, at 250 MW, and the Adani Ramanathapuram PV installation, at 200 MW.

http://smartinvestor.business-standard.com/market/Marketnews-374583-Marketnewsdet-India_China_led_investments_in_renewable_energy_in_2015_UN.htm#.VvZJRvl9600

FALCON TYRES LOST GLORY!!!

Ruia group loses grip on Falcon Tyres

PRATIM RANJAN BOSE, 

KS BADRI NARAYANAN

Stake falls to 2.12% after ICICI Bank invokes most shares pledged by a Ruia offshore armKOLKATA/CHENNAI, JANUARY 14:  Kolkata-based Pawan Kumar Ruia group has lost control of Falcon Tyres, which it had acquired 10 years back.The Ruia group had got a controlling stake in Falcon Tyres in December 2005 through an offshore deal.As on the end of September 2014, the Ruia group had a 31.62 per cent stake in Falcon, which has considerable presence in the two-wheeler tyre segment.According to a stock market notification of January 8, the Ruia group has lost control of Falcon as ICICI Bank has invoked 29.5 per cent of the 30.35 per cent shares that the Ruia group’s Mauritius-based Dim Rim and Wheel had pledged with the lender.The Ruia group now holds just 2.12 per cent in Falcon.While the stock market notification does not elaborate on the ownership status of Falcon, sources say ICICI Bank is now the de facto owner.Neither ICICI Bank nor the Ruia group offered any comment.ICICI Bank Singapore had lent $85 million to Wealthsea, a Mauritius-based investment arm of the Ruia group so that Dim Rim and Wheels could put through the Falcon buy.As part of the re-financing deal, the shares of Falcon were pledged with ICICI Bank. According to sources, the Ruias planned to repay ICICI Bank by selling the properties of Dunlop, which the group had acquired. But that did not happen as a court barred sale of Dunlop properties. Wealthsea defaulted, and ICICI Bank took it to liquidation, in the second half of 2014. The Ruia group did not contest the decision, triggering a chain of events, including the invoking of the pledged Falcon shares.Settlement soon?According to SEBI takeover regulations, any change in ownership or acquisition of over 25 per cent should trigger an open offer to the existing shareholders. But ICICI Bank is yet to make any announcement on Falcon.Sources, however, say the bank is in fresh negotiations with the Ruia group for settlement of dues and return of the Falcon shares. The total dues (including penal interests) now stand at nearly double the principal loan amount ($85 million).Sources close to the Ruias claim the group enjoys the support of corporate bodies, which together own 63.79 per cent in Falcon.Among the public shareholders, Suncap Commodities, Regus Impex and Salputri Commerce hold 56 per cent. A settlement, if it comes through, would require the Ruia group to raise fresh finances.Meanwhile, uncertainty is taking a toll on Falcon. While the turnover is down to ₹18 crore in the September quarter from ₹126 crore in January-March 2014, the company’s accumulated losses for the first half of this fiscal are close to ₹20 crore.(This article was published on January 14, 2015)

http://www.thehindubusinessline.com/companies/ruia-group-loses-grip-on-falcon-tyres/article6789458.ece

ECONOMIC REVIVAL, RURAL DEMAND AND 82000 Cr

Housing for all gets Rs 82,000 cr boost

By KA Badarinath Mar 24 2016 , New Delhi

Tags: Policy

Govt to use socio-economic data to spot beneficiaries

The central government’s ambitious ‘housing for all by 2022’ plan got its most major boost on Wednesday. The Union cabinet gave its green signal to prime minister Narendra Modi’s pet initiative to build one crore pucca houses in rural India with an investment of Rs 82,000 crore in the next three years.

Briefing newsmen, communications minister Ravishankar Prasad said all poor people — below or above poverty line — without houses or those living in dilapidated houses, would be eligible for financial assistance under the pradhan mantri awaas yojana (PMAY).

Huge investment planned for rural housing is expected to give a big boost to the construction industry, 250 other ancillary industries, generate millions of semi-skilled and unskilled job opportunities, apart from spreading transport services in rural areas.

The government expects that houses for rural poor would positively impact education and health apart from nutrition, sanitation and over all economic security.

President Pranab Mukherjee in his address to Parliament on May 2014 gave the first hint of government’s resolve to provide houses for all by 2022 with water, electricity, sanitation and access to public services.

Finance minister Arun Jaitley followed up this address with an action plan in his budget for 2014-15.

Under the project, rural houses would be built across the country, barring Delhi and Chandigarh, where the cost would be shared between the Centre and states in the ratio of 60:40.

In northeastern states and hilly areas, the Centre will pay for 90 per cent of the construction costs, while 10 per cent cost would be borne by states. Hitherto, Indira awaas yojana, under which assistance up to Rs 75,000 per household was available, would now be subsumed into the PMAY. Under the earlier scheme, about 351 lakh houses were built with an investment of over Rs 100,000 crore.

Under PMAY, Rs 1.2 lakh would be provided as assistance to those seeking to build houses on plains. This amount will be enhanced to Rs 1.3 lakh per family in inhospitable terrain and hilly areas. Apart from budgetary funds, additional finances worth Rs 21,975 crore will be mobilised through Nab­ard to be amortised through annual budgets after 2022.

The government will use socio-economic and caste census data of 2011 to identify rural beneficiaries for houses under the project. It will also set up a technical su­pport agency to ensure that one crore houses are constructed. To ensure transparency, the government plans to get the list of beneficiaries vetted by gram sabhas. Village panchayats will offer reasons for any changes made to this list.

badarinath@mydigitalfc.com

http://www.mydigitalfc.com/policy/housing-all-gets-rs-82000-cr-boost-065
badarinath@mydigitalfc.com

ROAD PROJECTS- HUGE MONEY...!!

‘Cable Car’ from Delhi’s Dhaula Kuan to Gurgaon soon, says Nitin GadkariUnion Road Transport and Highways Minister Nitin Gadkari on Tuesday said that a cable car facility would soon be in place from Delhi's Dhaula Kuan to Gurgaon's Manesar. The work on the project will be started hopefully this year, he said.By: IANS | New Delhi | March 9, 2016 9:51 AM

Union Road Transport and Highways Minister Nitin Gadkari on Tuesday said that a cable car facility would soon be in place from Delhi’s Dhaula Kuan to Gurgaon’s Manesar. The work on the project will be started hopefully this year, he said.

Nitin Gadkari also announced a Metrino Personal Rapid Transit System in Gurgaon from Delhi-Haryana border to Rajiv Chowk and Sohna road (Badshahpur Chowk) as a pilot project, and its detailed project report (DPR) of this project has been prepared at a cost of Rs.980 crore.

In his address at the valedictory session of the ‘Happening Haryana Global Investors’ Summit 2016 here, he also said that nine National Highways costing Rs 8,000 crore have already been announced for Haryana, while the state would have its first waterway from Palla in district Sonepat to Wazirabad in Delhi.

He announced that the work on Delhi-Jaipur Expressway would be started by the end of this year, and the Rs.18,000 crore will have a 70-km-long Haryana stretch, while a Delhi-Amritsar-Katra Expressway would be constructed and the Rs.45,000 crore expressway would also pass through the state to a length of about 170 km.

He also said construction of bypasses in Gurgaon linking National Highway-236 (Mehrauli-Gurgaon) with NH-8 and link between NH-8 (near Ambience Mall) and NH-236 (Mehrauli-Gurgaon road) to decongest NH-8 and Gurgaon city. Apart from this, he also announced that a sum of Rs.160 crore would be spent on the improvement of the junction near the Ambience Mall.

Gadkari announced that Rs.285.57 crores would be spent on the improvement of the junction at Rajiv Chowk, Gurgaon on Delhi-Gurgaon Expressway, Rs,263.41 crores on the improvement of junction at Signature Chowk in Gurgaon and Rs.386.34 crores for improvement of junction at IFFCO chowk.

He said that the westerly bypass of Kundali-Manesar-Palwal Expressway (KMP), would be completed within 343 days and greatly reduce the traffic and pollution of Delhi.

http://www.financialexpress.com/article/india-news/cable-car-from-delhis-dhaula-kuan-to-gurgaon-soon-says-nitin-gadkari/221159/

Shipping and Ports sector- A BOOM TIME...!!

Maritime sector to create 1 cr jobs in 5 yrs: Nitin Gadkari
The shipping and ports sector is poised to generate 1 crore jobs in 5 years as the government is committed to according it high priority, Union Minister Nitin Gadkari today said.
By: PTI | New Delhi | March 9, 2016 9:14 PM

Nitin Gadkari said manufacturing sector contributes 20-24 per cent to India’s GDP but its growth has been hindered by high logistics cost. (PTI)The shipping and ports sector is poised to generate 1 crore jobs in 5 years as the government is committed to according it high priority, Union Minister Nitin Gadkari today said.Projects worth 1.2 lakh crore have already been lined up for the Maritime India summit next month with a likely participation by 57 nations, he said.“India offers immense investment opportunities in the maritime sector. Prime Minister Narendra Modi has said growth of ports is instrumental in development of a nation. Unfortunately our maritime sector occupies the last place in globe but government has accorded top most priority to develop it,” the Road Transport, Highways and Shipping Minister Gadkari said.“This sector will create 40 lakh direct and 60 lakh indirect employment in next five years,” he said at the media launch of upcoming Maritime India Summit scheduled from April 14 to 16 in Mumbai.Nitin Gadkari said manufacturing sector contributes 20-24 per cent to India’s GDP but its growth has been hindered by high logistics cost.“We are set to address the issue by promoting water transport as logistics cost is 18 per cent in India as compared to barely 8-10 per cent in China and 10-12 per cent in European countries. Sending material to London from Mumbai is easy and less expensive as compared to dispatching it to Delhi,” he said.The government’s top priority is to develop waterways and ports to reduce the high logistics cost as while it costs Rs 1.5 a km to carry the cargo from road, the same stands at rupee one from rail while through waterways it reduces to only 25 paise a km, he said.The minister said maritime holds immense potential as India with its long coastline of 7,517 km and inland waterways of 14,500 km had vast untapped opportunities.“We have already identified projects worth Rs 1.2 lakh crore for maritime investment summit,” the minister said.Besides government has lined up huge projects under its Sagarmala initiative for port-led development of the country.Gadkari said government has identified over 150 projects under its ambitious ‘Sagarmala’ initiative. The government earlier has said that these 150 projects will mobilise more than Rs 4 lakh crore investmentThe Minister said three new major ports were also on the anvil at a cost of Rs 21,500 crore that include a greenfield port in Maharashtra with an investment of Rs 10,000 crore, another in Tamil Nadu with an expenditure of Rs 7,000 crore and one in West Bengal at an estimated cost of Rs 4,500 crore under PPP mode.Providing details of port augmentation projects, Gadkari said work has already been started on 27 projects worth Rs 12,700 crore to add a capacity of 116 million tonne per annum.Gadkari said these included Rs 2,087 crore project at JNPT, Rs 1,633 crore project at Paradip, Rs 811 crore project at Mumbai, Rs 263 crore project at Kandla, Rs 3,500 crore project at Kolkata port and Rs 425 crore project at Ennore.Besides, he said work on 15 projects worth Rs 6,700 crore would be started before March 31.In addition, he said, 32 projects worth Rs 4,651 crore had been completed and resulted in augmenting ports capacity by 70 MTPA.Another set of 46 projects worth Rs 28,040 crroe would result in augmenting the capacity of India’s major ports by 360 MTPA, he said.The minister said apart from converting 111 rivers across the country into waterways, the agenda including developing smart cities at major ports.He said 1,620 Km stretch on Haldia-Varanasi on Ganga was being developed and tenders were out for projects worth Rs 4,000 crore.“We will begin work before March 31 on these,” he said and added that stress was being laid on movement of coal to 13 power projects.Efforts are also on to reduce the turnaround time of the ships.Also on the priority is development of coastal areas in 13 states which will benefit 10 lakh fishermen, he said adding, the government planned low cost housing and other initiatives for them.Gadkari said development of shipping sector along with highways will contribute at least 2 per cent to India’s GDP.

http://www.financialexpress.com/article/industry/jobs/maritime-sector-to-create-1-cr-jobs-in-5-yrs-nitin-gadkari/221642/

Budget-2016, sectors get benefited...!!!

Budget — sectors that will benefit   ANISH DAMANIA

The top gainers are oil and gas, fertilisers and pesticides, cement, autos and construction

The Budget has provided the much-needed income boost to both the rural and urban consumer, while sticking to a fiscal deficit target of 3.5 per cent. While this translates to lower borrowings, aiding some easing of interest rate expectations, the income boost is expected to help the domestic consumption story. Since there were hardly any expectations from the Budget, the stock market also reacted very positively.
The top beneficiaries of this Budget are oil and gas, fertilisers and pesticides, cement, autos and construction sectors.
Tax collection assumptions are very conservative at 11.2per cent growth but targets for non-tax receipts like spectrum fees and divestment are ambitious. Tax collections, including that from the amnesty scheme, may surprise on the upside and may cover shortfall arising from spectrum auctions and disinvestment targets, if any.
Allocation of funds
Considering OROP (one rank one pension) and the Seventh Pay Commission burden and a tighter fiscal target, the government has come up with prudent allocation of funds for expenditure. Non-Plan expenditure growth is capped at 9.2 per cent while Plan expenditure is expected to grow 15.2 per cent.
Central plan outlay is pegged to grow 21 per cent. Rural schemes, social welfare and transport would see an increase of 28 per cent in outlay.
The increase in service tax on account of imposition of the Krishi Kalyan tax by 0.5 per cent is expected to have a negative impact on the services sector and, in turn, impact the consumers. However, the income boost will more than compensate for the increase in service tax.
On specific changes
a) Exemption from dividend distribution tax (DDT) made by a SPV (special purpose vehicle) to business trust is a huge positive for the business and investment trusts, as it will be able to free up capital for the corporates.
b) Proposal to levy an infrastructure cess of 1 per cent on small petrol, LPG, CNG cars, 2.5 per cent on diesel cars of certain capacity and 4per cent on other higher engine capacity vehicles and SUVs is a negative for the auto industry, but positive for the gas distribution companies as a higher cess on diesel cars will accelerate the conversion to cars running on natural gas.
c) Renegotiation of PPP contracts and early resolution of infra disputes; comprehensive bankruptcy code for financial firms to be tabled in Parliament in FY17; FDI of 49 per cent in insurance under the automatic route; sops for affordable housing, including tax deduction of additional interest of ₹50,000 for housing loans of ₹35 lakh and property value up to ₹50 lakh; increase in FDI for ARCs to 100 per cent and keeping the fiscal deficit at 3.5per cent of GDP in FY17 — all augur well for the beleaguered financial sector.
d) Digitigation of national land record under the ‘Digital India Initiative’ will be implemented from April 1 with an investment of ₹1,500 crore by way of expanding e-assessments to all assessees in seven mega cities in the coming years. ‘e-Sahyog’ is to be expanded to reduce compliance cost, especially for small taxpayers. This will not only benefit the IT companies but bring in a huge reform in the land holdings and land titles.
e) Fertiliser subsidy allocation of ₹70,000 crore, pilot project for fertiliser subsidy direct benefit transfer (DBT), reduction in excise duty on micronutrients from 12.5 per cent to 6 per cent and an increase in allocation for agriculture and irrigation — ₹47,900 crore versus ₹26000 crore in FY16 — augur well for the fertiliser and pesticide industry.
f) Increase in excise duty on cigarettes by 10 per cent is a negative for cigarette manufacturers which have been suffering from declining volumes over the past few years.
A levy of 1 per cent tax on jewellery might be marginally negative for jewellery companies.
g) Proposed reduction in the benefit of deduction for amount incurred on R&D from 200 per cent to 150 per cent with effect from April 2017 and 100 per cent wef April 2020 could marginally affect the pharma industry.
Net-net it was a pragmatic Budget and has addressed the single largest concern of growth in the economy.
The writer is Co-CEO, IDFC Securities
(This article was published on March 6, 

2016) http://www.thehindubusinessline.com/portfolio/technically/budget-sectors-that-will-benefit/article8320870.ece?homepage=true

STOCK MARKETS OVER A DECADE- A GLOBAL ACTION!!

IT IS VERY IMPORTANT TO UNDERSTAND THE GLOBAL ACTION IN PLACE WHILE ATTEMPTING TO INVEST IN THE MOST PROMISING COUNTRY LIKE INDIA. 

THE ECONOMIC GROWTH RATE IN INDIA TO SURPASS 10% OVER NEXT 5 Yrs FROM CURRENT 7% WITH THE KIND OF REFORMS IN PLACE AND HUGE FOREIGN DIRECT INVESTMENTS IN INFRA AND POWER MAY TRIGGER THE MUCH NEEDED RIGHT KIND OF STIMULUS DESPITE GLOBAL UNCERTAINTIES. THIS INTURN GENERATE HIGH CORPORATE PERFORMANCE THAT MAY TAKE NIFTY TO NEW HIGHS IN NEXT 2-3 Yrs.

• 

AS SHARP DECLINE FROM 8333 TO 6825 HAS TAKEN AWAY THE STRENGTH STORED IN NIFTY FOR A SERIOUS UPMOVE ABOVE 8080. NOW UPSIDE CAPPED CONSOLDATON IS ON THE CARDS.

THE ABOVE ILLUSTRATED MONTHLY CHARTS SHOW THAT FURTHER FALL CAN BE EXPECTED UPTO 6500-6600 REGION. THE LONG-TERM PROSPECTS SAFE, SO THE BULLS DOMINANCE IS IN FORCE, SO IS THE UPMOVE WITH REASONABLE TIME WISE AND PRICE WISE CONSOLIDATION.

NIFTY ENJOYED A DECENT CONSOLIDATION BETWEEN 4770 ON 04-06-2012 AND TOUCHED A HIGH OF 6112 ON 28-01-2012, THEN NIFTY TOUCHED A LOW @ 5119 ON 26-8-2013 ON WEEKLY CHARTS, THEN TOOK A BIG LEAP AND CONTINUED THE UP MOVE TILL IT TOUCHED ALL TIME HIGH OF 9119 ON 02-03-2015, THIS UP MOVE JOURNEY CARRIED FOR 80 WEEKS AND PRESENTLY ON CONSOLIDATION ACTION!

WHEREAS, SENSEX TOUCHED 15810 ON 14-05-2012 ON WEEKLY CHARTS AND CONTINUED THE UP MOVE 80 WEEKS TILL ALL TIME HIGH OF 30025 REGISTERED ON 02-03-2015, 

THE FOLLOWING CHARTS PROVIDE SOME IN-SIGHTS TO UNDERSTAND THE GLOBAL STOCK MARKETS ACTION IN DEVELOPED COUNTIES LIKE USA, GERMANY, UK, FRANCE, JAPAN AND HONGKONG.

THANKS TO DATA/CHART PROVIDERS WHO MADE THE HISTORY VISIBLE TO VIEW AND PREDICT/PROJECT  FUTURE COURSE OF ACTION.

https://www.linkedin.com/pulse/article/stock-markets-over-decade-global-action-nageswara-rao-bammidi/edit?trk=pulse-art-edit_btn

BUDGET=2016-17, INDIA on GROWTH PATH...!

Home » PoliticsLast Modified: Mon, Feb 29 2016. 06 40 PM IST

Highlights of Union budget 2016-17

Here are the key highlights of finance minister Arun Jaitley’s Union budget 2016-17 speech

Photo: Reuters

Finance minister Arun Jaitley presented Union Budget 2016-17 in Parliament on Monday. Here are the key highlights of his speech:•Cabinet approves Union Budget for 2016-17•We believe in the principle that money with the govt belongs to the people: Arun Jaitley•We must strengthen firewalls against risks through structural reforms, rely on domestic market so that growth does not slow down: 

Jaitley•We had to work in an unsupportive global environment and obstructive political atmosphere: Jaitley•CPI inflation was 9.4% in the last 3 years of previous government. It has come down to 5.5% now: FM•Indian growth is extraordinarily high; we converted difficulties and challenges into opportunity: FM•Growth has accelerated to 7.6% in 2015-16 notwithstanding contraction of global exports: FM•Current account deficit has declined to $14.4 billion this year, will be 1.4% of gross domestic product (GDP) at the end of fiscal: FM•The risk of global slowdown is mounting, complicating economic management for India: FM•We see these challenges as opportunities•FY17 will cast an additional burden due to One Rank One Pension, Seventh Pay Commission recommendations•We wish to provide for recapitalization of banks•

Focus to pass GST and bankruptcy code•Three major schemes to help underprivileged: Pradhan Mantri Fasal Yojana, health insurance scheme, launching initiative to ensure LPG connection for BPL families•Key points to look forward to: Incentivize gas discovery and exploration of gas, dispute resolution in PPP projects, banking sector reforms•Govt will undertake nine-point reforms including steps to ensure ease of business in governance, fiscal discipline to ensure benefits for peopleAgriculture and farmers’ welfare:•Look to double farmer income by 2020•Govt will reorient interventions in farming sector; we need to optimally utilize water resources•28.5 lakh hectares will be brought under irrigation•

A dedicated irrigation fund with Rs.20,000 crore under Nabard•Major programme for sustainable groundwater management•Govt to set apart Rs.412 crore to encourage organic farming•Access to market is critical for farmers•Implementing Pradhan Mantri Gram Sadak Yojana as never before—scheme to be allocated Rs.19,000 crore in FY17; Rs.27,000 crore in total—to advance completion target to 2019 from 2022•To support farmers after calamities, special focus has been given to ensure timely flow of credit, target is Rs.9 trillion in FY17•We have to ensure benefit of minimum support price reaches all parts of country—remaining states will be encouraged to take up decentralized procurement, effective arrangement of pulse procurement•

E-market portal for connecting breeders and farmers•Visible rise in yield of honey•90% of domestic honey is now exported•Allocation of Rs.35,984 crore for farm sector: FMRural areas:•Cluster-facilitation teams under MGNREGA to optimize water resources•Rs.38,500 crore allocated for MNREGA in 2016-17, the highest ever if entire amount is spent•As of 1 April 2015, 18,542 villages were not electrified—as on 23 Feb 2016, 5,542 villages have been electrified•2.87 trillion to be given grant-in-aid for gram panchayats and municipalities; it is quantum jump of 228%•Govt committed to achieve 100% village electrification by 1 May 2018•We need to spread digital literacy in rural areas—plan to launch digital literacy mission for more than 6,000 households in rural areas•Modernization of land records essential—to be implemented as a central sector scheme•Govt to develop 300 ‘rurban’ clustersSocial sector•To embark on scheme to provide LPG connections in womens’ names•Gratitude to 75 lakh households that have given up LPG subsidies•Almost 2.2 lakh new patients of end-stage renal diseases get added in India every year•Propose to start National Dialysis Programme with fund generated under PPP scheme•3,000 stores to be opened for quality medicines under PM Jan Ausadhi Yojana in 2016-17•S

C and ST entrepreneurs—Rs.500 crore to promote this under Stand-Up India•Next big step by focusing on quality education—commitment to improve higher education institutions•Decided to set up a higher education financing agency (non-profit)—initial corpus of Rs.1,000 crore•Digital depository for school-leaving certificates other academic certificates•Entrepreneurship education and training o be provided in schools and collegesJob creation:•Will pay EPF contribution of 3.33% for all new employees joining EPFO to incentivize employers•National Career Service—35 million job-seekers have registered; propose to interlink state employment exchanges with National Career Service•Retail trade—biggest employer in country•Small and medium-shops should be given option to remain open all 7 days on voluntary basis•Model shops bill on voluntary basis for states to be adoptedInfra and investment:•

Roads sector: Nearly 85% of stalled projects back on track•Speeded up road construction—to allocate Rs.55,000 crore for roads and highways, additional Rs.15,000 crore to be raised by National Highways Authority of India (NHAI) through bonds. Total allocation of Rs.97000 crore.•Total allocation of Rs.2.18 trillion for roads and railways•Pace of completion of road projects to rise to 10,000km in 2016-17•Total outlay for infrastructure in Budget Estimates is at Rs.2.21 trillion•Passenger traffic on roads more efficient now—This is a totally unreformed sector; absolution of Permit Raj is the medium-term goal; to open up road transport sector in passenger segment; states will have choice of adopting new legal framework; provision for more efficient public transport sector•Ports—to develop new greenfield ports•Civil aviation—plan for reviving underserved airports; to partner with state govts to develop some of these airports•

Natural resources: To incentivise gas production from deep sea, high temperature areas•Govt has achieved highest coal production growth in over 2 decades•Power sector—drawing up plan spanning 15-20 years to augment capacity in nuclear power sector•Initiative to reinvigorate private sector—public utility resolution of dispute bills; new credit rating system for infrastructure•Further reforms in FDI policy—area of insurance and pension, stock exchanges etc•Duty drawback scheme widened to include more products, countries•FDI policy should address farmers, food processing industry—100% FDI through Foreign Investment Promotion Board route for marketing of food products produced and processed in India•Department of disinvestment to be renamed

Financial sector reforms:•Bankruptcy code to be introduced•RBI Act 1934 to be amended to provide statutory basis for monetary policy framework•Financial data management centre to be set up•New derivative products•Stressed assets—ARCs have an important role—necessary amendment to Sarfaesi Act will be done•Central legislation to deal with fraudulent schemes•To amend Sebi act for more benches for SAT•Banks—Rs.25,000 crore to be provided for recapitalization of public sector banks, which are grappling with stressed assets; Govt stands solidly behind these banks.•Banking board bureau to be operationalized during this year•Debt recovery tribunals to be strengthened for speedier dispute resolution•

To undertake massive rollout of ATMs over next 3 years•Insurance firms owned by government will be listed on stock exchangesEase of doing business:•Initiatives include introducing targeted delivery of subsidies through Aadhaar, with a social security platform for use of Aadhaar; direct benefit transfers on a pilot basis for fertilizers•Bill to amend Companies Act—enabling environment for start-ups•Create closer engagement between states and districts—Ek Bharat, Shresth Bharat•70th anniversary of Independence in 2017—Ek Bharat, Shresth Bharat is a part of this missionFiscal situation:•Fiscal Responsibility and Budget Management (FRBM) roadmap: Prudence lies in adhering to fiscal targets•Budget and Revised estimates for FY15-16 at 3.9% and 3.5% of GDP respectively•Total expenditure in budget—Rs.19.78 trillion•Retaining fiscal deficit target at 3.5% for FY17•Plan/Non-plan classification to be done away with from FY17-18•Revenue deficit target at 2.5% of GDP•

FRBM: Better to have a fiscal target range; Must review working of this Act—to set up A committee to review FRBM•Seventh Pay Commission—Made interim provisions while recommendations are being reviewed—restructured more than 1,500 central schemes; Allocated Rs.100 crore each for celebrating birth anniversaries of Pandit Deendayal Upadhyay and Guru Gobind SinghTax reforms:•Relief to small taxpayers, measures for moving towards pension society, reducing litigation, simplification of taxation•Ceiling of tax rebate at Rs.5,000 for income less than Rs.5 lakh•Relief to people living in rented houses—Deduction for rent paid will be raised from Rs.20,000 to Rs.60,000 to benefit those living in rented houses•Presumptive taxation schemes—to increase turnover limit to Rs.2 crore—relief for many in MSME category•Extend presumptive taxation scheme to all professionals with gross receipts up to Rs.50 lakh•Corporate tax rate reduction should be calibrated with benefits of phasing out exemptions•

Corporate tax rate for establishments with turnover less than Rs.5 crore lowered to 29% of surcharge plus cess•Make in India—100% deduction of profits for start-ups adhering to certain conditions; MAT will apply•To implement GAAR from 1 April 2017•To reduce customs duty on refrigerated containers•Exemptions for braille paper•Pension society—Exemption of service tax for NPS, EPFO to employees•Affordable housing—100% deduction on profits for flats up to 30 sq.m in metro cities from 2016-19; MAT will apply•First-time home buyers—relief on housing loans for up to Rs.50 lakh•Surcharge on luxury cars costing more than Rs.10 lakh•0.5% Krishi Kalyan surcharge cess on all taxable services from 1 June 2016, to be given to agriculture development•

Environment—Pollution cess on all vehicles•To impose additional duty on jewellery•Change excise duty on branded ready-made garments•Revive clean energy cess on coal, others•Increase duty on tobacco products (other than beedi) by 10-15%Reducing litigation:•Tax evasion will be countered strongly•Limited period compliance window to declare undisclosed income•

Black money—3 lakh tax cases pending before authority—a new dispute resolution scheme will be set up where taxpayer can settle case by paying disputed tax and interest with certain conditions•On retrospective tax amendments—committed to providing stable tax regime; committee will be chaired by revenue secretary•One-time scheme for dispute resolution for pending retrospective tax amendment case•Justice Easwar committee recommendation—abolishing 13% cesses levied by various ministries•Rationalizing TDS provisions for income tax•Non-residents without PAN—higher rate won’t apply on furnishing alternate ID•To amend customs act

Use of technology:•Will use technology in tax department in a big way•To expand scope of e-assessment for taxpayers in 7 big cities•Govt will pay interest @9% in case of delay in giving appellate orders beyond 90 days•Impact of tax proposals will lead to revenue gain of Rs.19,610 crores•Conclusion of budget speech•Introduction of Finance bill 2016•House adjourned to meet on Tuesday at 11am

http://www.livemint.com/Politics/ZeR6NzgalHzxb9u7UgHmpL/Union-budget-201617-Highlights-of-Arun-Jaitleys-speech.html

CONSTRUCTIVE INVESTMENT DECISIONS...!

CONSTRUCTIVE INVESTMENT DECISIONS

 for 

MULTI-BAGGER RETURNS!! 

NOBODY EVER LIKES TO TRADE FOR A LOSS BUT SELDOM RECOGNIZE THE INHERENT THREAT INVOLVED & THE DAMAGE THAT MAY OCCUR IN TRADING!

WIDESPREAD OPPORTUNITIES & TEMPTATIONS:

TRADERS GET EVERYDAY OPPORTUNITIES TO PARTICIPATE IN DIFFERENT INSTRUMENTS AS TRILLIONS OF DOLLARS WORTH BEING TRADED ON THE EXCHANGES ACROSS THE GLOBE THROUGH VARIETY OF INSTRUMENTS LIKE DEBT, CURRENCIES, EQUITY, GOLD, CRUDE OIL AND OTHER COMMODITIES etc.

THE TEMPTATION TO BUY AT LOW WHEN MARKETS START FALLING WITH AN ANTICIPATION TO BOUNCE AND SELL IN A TRENDING HIGH MARKETS WITH AN ANTICIPATION TO FALL, ADD TO THOSE MISTAKES ADOPT "AVERAGES" AS A STRATEGY SINKS TRADERS CONFIDENCE THERE BY WEALTH EROSION & EXTINGUISH!, EXPLORE & UNDERSTAND HOW DOES EVER MARKETS OFFER PROFITS TO EVERY TRADER?.

ADOPT INVESTMENT STRATEGIES: BUY GROWTH STOCKS

MARKETS FALL NOT BECAUSE TO FALL FOR A REASON BUT ALSO TO DUMP THE LAGGARDS AND SHIFT/CHURN FUND ALLOCATION TO EMERGING SUNRISE SECTORS AND TO CATCH GROWTH STOCKS AT THEIR BEST POSSIBLE LOWER RATES FOR FUTURE THUMPING RETURNS!.

THE FIIs, DIIs & OTHER INSTITUTIONS EMPLOY TAMS TO STUDY, DEVELOP RESEARCH REPORTS FOR A SPECIFIC COMPANY OR A SECTOR IN ADVANCE, TAKE A WELL INFORMED CALL WITH ADEQUATE PREPARATION. THEY “GO FOR A DUMP” OF THE PAST LAGGARDS DURING MARKET SELL OFFS. UNFORTUNATELY, RETAIL INVESTORS WHOSE RUSTED MEMORY, TWEAKED WITH OUTDATED IDEAS TEND TO BUY THESE KICKED STOCKS, JUSTIFYING AS YESTER YEAR'S GOOD COMPANIES.

AFTER A PAINSTAKING WAITING OVER A PERIOD OF TIME MAY REALISE THAT THESE SCRIPS WERE SOLD DUE TO POOR FUTURE BUSINESS PROSPECTS TO PERFORM OR A CHANGE IN MACRO ECONOMIC COMPETITION, BUT BECOME TOO LATE AS THE PRICE SINKS TO ITS ABYSS…!!.

TRADERS PSYCHOLOGY & EGO GRATIFICATION: 

TRAINED PROFESSIONALS WHO ARE SUPPORTED BY INSTITUTIONAL BACKING & WELL ESTABLISHED NETWORKS ARE EXCEPTIONS TO THIS RULE BUT MOST AVERAGE RETAIL TRADERS THINK, MANY VEHEMENTLY CLAIM THAT THEY ARE MORE SMART AND INTELLIGENT THAN THE REST. THIS BEHAVIOURAL ATTITUDE ELEVATES THEIR EGO AND ENCOURAGE TO GO FOR TRADING TO MAKE “HUGE MONEY” – UNEXPLORED!!. 

RETAIL TRADERS AS WEAK HANDS, STAY LOW WITH SPECIFIC INFORMATION GET TRAPPED DUE TO EMOTIONAL TRIGGERS TO GRAB "BUY LOW- AS AN OPPORTUNITY" SHALL TRY TO UNDERSTAND BROAD MARKET ACTION BEFORE THE LEAP! 

UNFORTUNATELY, MOST RETAIL HANDS GET TRAPPED IN THIS VICIOUS CYCLE OF LOSING PROPOSITION, THOUGH THEY UNDERSTAND THE ENTANGLED DIFFICULTIES ASSOCIATED BUT INCLINE TO HOOK ON TO THE WHEEL DUE TO PSYCHOLOGICAL COMPULSIONS, DIFFICULTY TO ACCEPT THE HUMILIATION AND TAKE BOLD A CALL TO EXIT!.

CONCLUSION:

HYPOTHETICALLY, ALL INVESTMENTS SHALL YIELD POSITIVE RETURNS BUT NEVER HAPPENS DUE POOR SELECTION!. SO, ALWAYS INVEST IN COMPANIES AS GROWTH STOCKS TO BECOME MULTI BAGGERS OVER NEXT 4-5 Yrs, WHOSE BUSINESS SCOPE IS LARGE, ASSOCIATED & EXPAND WITH BOOM IN ECONOMIC ACTIVITY FOR ASSURED PROFITS TO EXCEL & LEAD IN FUTURE. 

RETAIL INVESTORS WHILE PARTICIPATE SHALL TAKE CONSTRUCTIVE INVESTMENT DECISIONS AND KEEP ON INVESTING AT REGULAR INTERVALS THAT BECOMES A "HAPPY INVESTING" BASED ON THE FUNDAMENTALS RATHER THAN MERE "TIPS OR A CHEAP SCRIP". 

WHEREAS TRADERS SHALL NEVER TRADE WITH FRUSTRATION OR VENGEANCE, ALSO WITH HIGH LEVERAGE, SHALL CONDUCT A SERIOUS STUDY OF SCRIP LEVELS TO PLAN THE TRADE & ADOPT A STRATEGY TO TRADE WITH CAUTION.

TRADERS SHALL NEVER CONVERT TRADE POSITION INTO INVESTMENT DECISIONS, ALSO NO HESITATION TO BOOK LOSS WHEN STOCK FAILED TO PERFORM IN THE ANTICIPATED DIRECTION.

TRADERS SHALL DEVELOP SHREWDNESS TO SWITCH POSITIONS AS OPPORTUNITY ARISES IN THE BROAD MARKET DIRECTION...!!! 

BUY AGAIN, BUILD RIGHT PORTFOLIO...!!!

Sell in panic, repent at leisure

By Rajiv Nagpal Feb 21 2016

Tags: Stock Market, Market Research

It is tough to stay calm amidst negative news flows, but history shows markets rebound with a vengeance

Markets are driven by three essential emotions: hope, fear and greed. It is true of any asset class. Be it debt, gold, equity or real estate, they all go through bouts of these feelings. The Indian equity market has entered a cycle of fear, it seems. What trigged the slide from hope to fear? The prime reason was the decline in broader markets and midcap stocks since the start of the new year.

On January 21, the Nifty 50 Index completed the critical 20 per cent correction, from its all-time high of 9,119 points on March 4, 2015. Soon enough, voices were heard that a bear market had started. The term “bear market” struck-like lightning and sent retail investors, especially the recent entrants, into utter panic.

They can’t be blamed. Controlling emotional response to a heavy flow of negative news is easier said than done. It is extremely tough to control fears when headlines scream with nuggets like the global economy is heading to a slowdown, China is deep in trouble, foreign investors are selling as they move out of emerging markets and skeletons are stored in the domestic banking system.

This takes us to another point. Who said that making money is an easy job? Making money was always and will always be a tough job. A major part, probably the toughest part, of investing or trading in equity involves controlling one’s emotions when it is extremely difficult to do so.

In today’s environment, it is tough not to feel negative about the equity market. After remaining robust for almost 18 months, flows to even systematic investment plans (SIPs) of mutual funds have slowed down in the past one month, an indicator that hope is giving way to fear.

Two things can help investors detach emotions from decision-making. The first is to understand the real meaning of a bear market. The second is to have a look at the new flows that came with the earlier so-called bear markets and also look at historical performance of both broader markets and indices a few years after that phase of extreme negative news flows.

Let’s understand the bear market. Essentially, a bear market is a condition where prices of certain asset classes are falling with each passing week. In the case of equities, when stock prices are falling, it is called a bear market. Normally, the first reaction of an investor would be that if it is a bear market then I should sell because prices are gonna fall more. When this thought comes in, an investor should ask himself two questions. First, do I require the fund for any alternative use, either for consumption or investment in another asset class? Second, after selling, should I buy the same stock at a lower level, if yes, at what level? If there is no clarity on why to sell the stock, prices are falling is not a reason to sell, because prices are not going to fall for all the time and could revert in a matter of time. So, if you don’t need the money, sit back and stop looking at the ticker scrolling below the television screens, so that the temptation to sell is taken care of.

Now comes the second issue of the news flows that hit the earlier bear markets. The first serious up-move in the market, with domestic and foreign investors participating, came in 1996. Soon thereafter, the Asian markets were hit by a currency crisis. The Indian economy was then seeing its first much-publicised slowdown. Sale of heavy commercial vehicles, a much-relied on gauge of the economy then, were slipping. On January 1, 1996, the Nifty was at 908. It went on to touch a high of 1,203 on June 17 and then started to slip, touching a low of 788 on December 4, before moving back and ending the year 1996 at 899.

Now technically, it was a perfect bear market, as the Nifty had surrendered all its gains of the year and formed a new low that year. Just three years later, in 1999, the Nifty was quoting at 1,505 on October 14, 1999, almost a gain of 100 per cent in three years.

This was just about the Nifty. What happened to technology and other stocks is well known. Now, in 1996, any investor who sold his stock because the Nifty had fallen to certain points or retraced to a certain technical level, suffered a huge opportunity loss three years down the line.

Similarly, in 2000, the whole world seemed to be coming to at end. Technology stocks had gone through their worst correction; the global economy was in recession; the US was hit by the worst ever attack on its soil; for India, global crude oil prices had started to move up in 2001. Probably, in 2000 and 2001, global markets were hit by negative news from all sides.

This time too, the Nifty’s moves were very similar to the earlier ones. After touching a high of 1,818 on February 23, 2000, the index slipped to a low of 1,108 points on October 19, 2000–again a bear market technically. But whoever sold then from panic was again came out as a loser, because in January 2004, the Nifty was again on the verge of an unprecedented bull run the Indian market had seen.

Similarly, in 2008, the world came to end again. The US economy slipped into a recession; commodity prices tanked; the currency market went into upheaval; and a reset happened in every asset class, right from gold to real estate. Now, whosoever sold in that panic again came out as a loser in just two years, as all losses were literally covered at the index level.

In 2013 again, the Indian economy was probably hit by the worst possible news flow; a sharp decline in stocks; a period of double-digit inflation, a high interest regime and incidents of corporate default. But just one year down the line, the index touched an all-time high and stocks made sharp gains.

Today, again the situation is the same. Everything now looks bleak, internationally and domestically. Probably, the saying “this too shall pass” was coined for the stock market. But investors should not forget one basic tenet; time can take care of the stock price of only good companies. If one had invested in Infosys at the height of the technology bull market, one would still have made money over the years. But had one invested in a company where promoters had a bad track record, the money was lost forever, never to retun.

Today, if an investor really needs to sell, he should sell in companies where promoter reputation is feeble and corporate governance is in doubt.

rajivnagpal@mydigitalfc.com

(Rajiv Nagpal is consulting editor, Financial Chronicle, and director at stockbroking firm Elan Equity)

http://www.mydigitalfc.com/stock-market/sell-panic-repent-leisure-008

FEB-series current action-23-02-16

BNR- DAILY = MARKET = PERFORMED ACTION=23-02-2015

NIFTY:  DOWN BY: (125) POINTS: 

The Nifty saw a relentless selling in Banking and other counters except the Green in Asian Paints, whereas Bank of Baroda the Top loser. The serious selling started in counters that stood out well during the 4- day moves. The Asian markets are relatively strong but the Europe opened with negative bias and the crude also fell. 

The global worries are keeping us down as well the domestic issues against the Govt and lack of Investments keeping the FIIs out of the favoured nation list for last 6-months. A serious threat to NDA in Bihar has changed the FPI view and they are pulling out money with-out any consideration.

The Budget may bring some change in the scenario as many investors hoping but forthcoming election and lack of rural demand may keep the exuberance at bay.

There are two days to go to FEB series closing, NIFTY lost (4%), 315 points down and BANK NIFTY 1350 (9.4%) down, a fall from the start of FEB-series-29-01-2016. Despite of serious selloff following some counters keeping their head above the waters. These counters like Ajantha pharma up by 57, AMARRAJA Batteries 64, Apollo Hospitals by 30, Apollo Tyres by 15 (10%), Asian Paints 17, Bajaj auto by 130 Bajaj Finance by 131, Bharati by 27 (10%), Dr Reddy by 67, Eicher Motors 3063 (17%), Godrejcp by 27, Grasim 62, Heromotors by 213, Hexaware 27, HUL 45, JSW steel 29, KSCL 39, LT 54, Lupin 67, NMDC 14 (16%), Pidilite 57 (10%), Siemens 32, SRTransport 59, SUN 38, UBL 22, VEDL 6 (8%).

But the slaughter happened in counters like WockPharma Down by 47%, JUST DIAL -34%,ORIENT 32%,BHEL-31%,SYNDICATE BANK 30%, OIL-29%, ENGINEERS INDIA 26%, HINDPETRO-23%,PNB-23%,INDIA CEM -22%, AUROPHARMA-21%,DHFL-21, CROMPTON- 22%, VOLTAS 21%, ALBK-21%,STAR 20%, ICICI-20%,INDIABULLS HSG- 20% SBI-18%, UNITECH 36%, UCO 18% CANBANK-16%, BPCL16%, ADANIENT-16%, HDIL-16%,TV-18, 16%, MARUTI-16%,TECHM- 15.5%,TATAGLOBAL 15%, TATACOMM-16%, RELCAP-14%, LICHSG-13%,RELINFRA-10%,