Category Archives: India

Indian Market Slips; European Indices Also Close Lower

Indian Stock market slipped on Monday after a very good start for the New Year 2013. Stock market experts are still positive about the movement of the Indian stock market. Goldman Sachs has given positive rating for Indian and Chinese markets.

BSE Sensex closed 93 points lower at 19691 and NSE Nifty closed 27 points lower at 5988. Among major losers in today’s trade were Larsen, Jaiprakash Associates, HDFC and HUL.

Goldman Sachs has given a strong guidance for Indian stock markets with 7000 as target for NSE Nifty by the year end. The brokerage house has upgraded the GDP growth for Asian region to 6.9 compared to earlier estimates of 6.2 per cent.

Bajaj Auto MD has expressed worries over lower sales in auto sector. He has pointed that Bajaj Auto expects flat sales in year 2013.

Major gainers in today’s session were BPCL, Maruti Suzuki, Cipla and Tata Steel.

Indian Stock Indices Trade Marginally Higher; Asian Stocks High

Indian Stock Markets opened marginally higher and banking stocks have continued from yesterday’s rally. Axis Bank and SBI were among major gainers in early trades. BSE Sensex was up by 15 points while NSE Nifty was higher by 3 points.

Among banking stocks, Federal Bank, Union Bank, Axis Bank and Bank of India were up by more than a per cent. PNB, Kotak Mahindra, IndusInd Bank, SBI, Bank of Baroda, Yes Bank and Canara Bank were trading higher.

Among sectoral indices, BSE Auto was up by 86 points. BSE HealthCare was up by 45 points and BSE Metals index was also positive. IT, Oil & Gas and Capital Goods stocks were trading lower.

Aashish Tater of Fortunewizard. com has suggested Omkar Speciality Chemicals as a multbagger stock during at interview with CNBC-TV18. He has also suggested investors to buy Lanco Infratech with a medium term view for decent gains.

Indians Buying More Gold Even as Worldwide Demand Remains Low

Indians are buying more gold even when the yellow metal is ruling at its all time high prices. Many experts were expecting that the price rise in Gold could impact the consumption of the precious metal but Indians have proved them wrong.

More people are buying gold and many of them buy it as an investment for long term. Global gold demand registered a decline of 11 per cent during third quarter of 2012. China and India are among major consumers of Gold. The gold purchases in China witnessed decline of 8 per cent during the same period.

Indian gold consumption went by 9 per cent in third quarter. The price of gold has been ruling higher in India due to rise in value of US dollar compared to Indian currency.

However, investors are finding gold as a safer investment and this has pushed the demand for the yellow metal. The recent trends in real estate market have been bearish. Due to lower returns on real estate investments, some investors are churning their funds and investing in Gold.

The demand for Gold coins and bars in Germany has witnessed steep fall. In Indian market, the price of gold was trading at Rs 31,596 per 10 grams.

Indian Stock Market Gains; Ambit Capital Expects Sensex at 23000 in 12 Months

Ambit Capital has expressed bullish view about Indian stock market with 23000 as target for BSE Sensex in coming 12 months. Saurabh Mukherjea, Head Equities, Ambit Capital said during an interview to CNBC TV18 that he expects markets to move higher. The current results are an indication of bottoming out of the earnings for Indian majors. He expects Indian markets to outperform other emerging markets.

Indian stock market was trading higher on Monday. BSE Sensex was up by 92 points at 18774 and NSE Nifty was trading higher by 22 points at 12.02 PM IST.

Among majors gainers were TCS, ICICI Bank, Mahindra & Mahindra and NTPC. Bank of Baroda, Ambuja Cements, ITC and Jindal Steel were among major losers in today’s trading session.

TCS management has expressed satisfaction over the current market condition. The outlook for the upcoming quarters is positive and the stock has been performing well on the bourses.

If the government pushes forward with reforms agenda, the investment climate in India can improve. The country faced rating downgrade from major rating agencies including S&P. If the UPA government is successful in reducing the current account deficit, the markets may look up in medium term.

Congress Plays Cheap Political Trick with 9 LPG Cylinders in Congress Ruled States

Facing the pressure from opposition and UPA allies over the increase in diesel price, and FDI, Congress has played another card by increasing the number of subsidized LPG cylinders in a year from 6 to 9 in congress ruled states.

The decision comes after most political parties announced that 6 LPG cylinders per year are too low as common household consumption is more. Congress has directed the states where it has ruling to offer 3 additional cylinders at subsidy to consumers.

Mamata Banerjee has decided to withdraw support from UPA and their ministers will offer resignation on Friday. The Congress party leaders held meeting in New Delhi to discuss next course of action. The decision of Mamata Banerjee to quit the UPA government comes as her demands for rollback were not heard by Congress leadership.

Congress wants to push ahead with the reforms but its allies are not allowing it to move forward. Congress is also portraying itself as a victim to win public support, but with rising expenses, common man can not support the decisions of the government. Congress should have thought of other reforms, which could have allowed the government to reduce deficit rather than increasing diesel prices by Rs 5, which will surely impact budget of most of the people in the country.

Air India Strike Continues; DGCA Plans Strict Action

Air India pilots on strike might be in for a negative surprise as DGCA is considering cancellation of licenses. Many pilots have been issued show cause notice.

After the tough message sent across by aviation minister Ajit Singh, there are expectations that Air India pilots can return to work. The minister did not meet the pilot representatives and asked them to join their duties before any further talk.

Indian Pilots’ Guild has been derecognised by the Indian government and DGCA is considering tough action against office bearers of IPG.

Air India has been suffering massive losses in the past few quarters. After the government offered funds to keep the day-to-day business running at the national carrier, there has been pressure on Air India to register positive growth.

The aviation sector in India has been under pressure due to higher fuel costs. Vijay Mallya owned Kingfisher is private carrier facing trouble due to massive losses.

Indian Markets Recover; Asian Markets Lower

Indian Markets bounced back on Thursday with NSE Nifty strongly over 5000 mark and BSE Sensex nearly a per cent higher at 16635.

Gold was trading at 28,440 per 10 grams while Silver was nearly a per cent down at 54,700.

In today’s trading session, IDFC was up by 5% at Rs 121. Cairn India was trading higher by 3.9% at Rs 320. BHEL and Kotak Mahindra Bank were also among major gainers.

After yesterday’s rally, pharmaceutical major Ranbaxy Labs was trading lower today. PNB was also trading lower. Among other losers were auto major Maruti Suzuki and technology leader Infosys Technologies.

Indian markets are expected to close positive today. Among sectoral indices, BSE Auto was up by 101 points. Capital Goods and BSE Metals indices were also trading with decent gains.

Will Indian Retailers Allow FDI?

There seems to be no end to the controversy surrounding FDI in retail for the Indian Government as mass protests across all the states are not soothing out. While parliament is not reaching at any consensus at all on the same, there are over 6,000 traders in Shimla who have closed their shops to oppose the decision.

Adding fuel to the fire in the joint opposition by Bharatiya Janata Party (BJP) in the state and Communist Party of India-Marxist (CPI-M), which are hell bent to jolt the government. As of now, no reports of violence have been received.

“We have got very good response from across the country and 5 crore traders will not open their shops tomorrow. They will hold protest in their own markets. We will not hold demonstrations in front of foreign stores”, said Praveen Khandelwal, Secretary-General of the Confederation of All India Traders association. Backed by support from other states, there seems to be no early breather for the government.

Apparently, there are confirmed reports that several Bharti-Walmart stores would be shut down on Thursday to avoid any violence. Even security has been escalated at stores of World’s second largest retailer Carrefour in Delhi and Jaipur as a part of precautionary measures. Meanwhile, such similar shutter down operation was seen in Karnataka against the government’s decision to allow 51% the FDI in retail.

Nonetheless, the government has assured that there decision in favor of public interest, there are lingering fears in the minds of retailers that there would be threat to their presence in case such malls are being set up in their states.

There are countries like US where such decisions have affected many small stores, and that’s what has made retailers to put up strong opposition for the entry of foreign players in the retail market. While government would be putting up their best efforts, it would be interesting to see how they would seam through the fierce attack of retailers and opposition parties.

Duqu Attackers: Master Coders, Linux rookies

Post the revelation that 12 known command-and-control (C&C) servers for Duqu were found with all files deleted on Oct. 20, 2011, it has been confirmed that there is no more hacking being done. This revelation has been made by Moscow-based Kaspersky Lab.

It has been found that as soon as the attackers got to know about the Duqu Trojan in October, they secretly tried to remove every single trace of their activity from all their command and control servers.

It is being believed that Duqu is a Trojan horse-based botnet which shares common code and characteristics with Stuxnet. Being developed by hackers, Duqu is told to be attacked by some other country which could have vested interest in the files stores in the Linux servers.

There were reports earlier about Stuxnet which had destroyed Iran’s nuclear program, but Duqu was not made for that purpose. It was made to keep a track on vulnerable installations and computer networks which could trigger the development of another worm targeting industrial control systems.

It has come to the notice during the investigation that hackers had removed every single server they had used as far back as 2009, and further, they checked it again if they have deleted all the stuff perfectly or not.

“The logical assumption here is that we’re looking at possibly a vulnerability in the older version and/or an added feature in the new version that’s of use to the attacker”, said Roel Schouwenberg, a Kaspersky senior researcher. It has been known that along with the command and control servers in India and Belgium, Duqu had been associated with servers in Vietnam and the Netherlands,

As of now, no clue about the hackers behind Duqu and Stuxnet is found as they planned their each move very smartly, however, significant efforts have been made by Kaspersky researchers on the same.

Telecom Ministry Presses For Strategic M&A Guidelines

There is no doubt left that post the 2G scam, the telecom industry was taken aback and that is why so much was being talked about the same. There was desperate need to clear out lines of operation so that all the involved parties can get satisfaction. There are recent reports that the communications ministry is in favour of making the M&A norms more liberal so that the best possible services to the customers can be provided.

However, the complete draft has not been made public, close sources have made it clear that there should not be more than six or seven players in a circle (service area). It has been told that post a deal, it should be considered that of the entire total stake, the combined entity should not have more than 25% of the total available airwaves in that region.

Apparently, the telecom department (DoT) panel is not that keen to go with the recommendation given by the TRAI. There is call for making combined entity’s market cap not more than 35%. However, the matter would be discussed by the Telecom Commission in the time to come. There are chances that the matter would get some final look in the next meeting on December 1.

However, bringing the industry, the ministry and the opposition to one common point is not that easy and who better than Telecom Minister Kapil Sibal can tell about this, who would be seeking Cabinet’s approval before enforcing NTP.

There is confirmed news that Telecom Minister would be putting up his best efforts to ensure that this matter is being resolved between the government and service providers soon.

“I will meet with the industry players soon to discuss the 3G roaming issue, industry players have sought time and I am hopeful to resolve the issue”, said Sibal.