China's TCL making pitch for Videocon

The $16.5-billion Chinese electronics major, TCL, has made a pitch for the Videocon brand as the resolution professional (RP) of the debt-laden Indian company invites buyers to take control of the firm. 

The interest from TCL comes at a time when the Chinese company has laid out detailed plans for a major expansion in India, which includes setting up a factory in Bengaluru for TVs, air-conditioners, washing machines, refrigerators and smartphones. 

-economictimes.indiatimes.com/

The new Tax pact between Japan and India

Updating an older convention of 1989- India and Japan has signed a new double taxation avoidance deal.
This deal will allow exemption of interest income on loans by the government or government owned financial institutions from taxes.
Japanese entities under the new pact will now pay tax on the interest income earned by them from loans to the projects.

Coke slash

Coca- Cola will cut jobs in India as well as part of its " redesigning operating model" globally to accelerate business growth across markets. Coca- Cola employs around 250 people in India.

E-commerce has taken India by a potential strom

In India E-commerce sales have shown a potential growth and analyst are expecting it to grow by 45.2 percent to USD 7.69 billion this year. Last year the retail e-commerce sales was USD 5.3 billion.
Big investors from India and abroad putting their money on various e-commerce ventures which had generated funds to the tune of USD 3 billion from individuals, companies and private equity firms.

A report issued by consulting firm Technopak pegs the USD 2.3 billion e- tailing market to reach USD 32 billion by 2020

Cisco India is betting big on wireless

Enterprise networking company Cisco India is betting big on the wireless opportunities set to be offered by Indian government- Narendra Modi.
With public sector companies no longer seeing wireless as a security threat, Cisco is preparing its strategy for this next big area.
" The understanding of IT security needs to increase among a lot of executives working in the government. We have some more way to go. Cisco has done work around data centres. From servers to central architecture, we have done a fair amount of work. Wireless is going to be the new big area. It is something that started in the government only in the last couple of years," said Puneet Gupta, the managing director, Cisco Systems (India) Pvt Ltd.

Warning bell ignored by India, leads to weakening of Rupee

Viewing the India's current economic strata, its more likely that it will take much time for rupee to recover. Its main cause was and is ignored by its Govt. India's is on the second highest level after United States of America which is having high external deficit.
The Indian rupee touched record low of 65.52/dollar on Thursday and is down 16 percent so far this year despite efforts by policymakers to prop it up.
With rupee crisis, high inflation, budget deficit, foreign debt economist have started comparing it with the scenario of 1991 economic crisis.

CRR, Reverse Repo and Repo Rate

CRR: Cash Reserve Ratio is the amount of funds every bank in India has to keep with RBI.
RBI uses the CRR to squeeze out the excessive fund in the system.

Reverse Repo: It is the rate at which RBI borrows money from commercial banks. An increase in reverse repo rate can prompt banks to park more funds with RBI to earn higher return on idle cash. It is also a tool use by RBI to suck excessive funds in banking system.

Repo Rate: It is an instrument of monetary policy. The rate at which the RBI lends money to commercial banks is called repo rate. Whenever banks have any shortage of funds they can borrow from RBI

Gold below 31k line

Driven by sharp fall in prices overseas, Gold fell to over two-month low of Rs 30,950 per 10 gram while silver nosedived by Rs 1,500 per kg.

While gold lost Rs 270 to Rs 30,950 per 10 grams, while silver loose Rs 1,500 to Rs 58,000 per kg.

sentiment weakened on global trend where precious metal's tumbled the most in more than four months to below $1,700 an ounce as US payrolls in October rose more than forecast, easing pressure on the Federal Reserve to expand monetary stimulus.

In New York, gold tumbled by 2.3 per cent to $1,675.20, the biggest drop since June 21. Silver also plunged 4.3 per cent to $30.85 an ounce, the biggest fall since June 21.

In India gold of 99.9 and 99.5 per cent purity fell by Rs 270 each to Rs 30,950 and Rs 30,750 per 10 grams, respectively. The metal had lost Rs 280 on Friday.

Sovereigns declined by Rs 50 to Rs 25,400 per piece of eight grams.

Silver ready tumbled by Rs 1,500 to Rs 58,000 per kg and weekly-based delivery by Rs 1,665 to Rs 57,635 per kg. The white metal had lost Rs 750 in the previous session.

Silver coins lost Rs 2,000 to Rs 74,000 for buying and Rs 75,000 for selling of 100 pieces.

OMG!!! Please save GOLD for me...

I was shocked after reading the first page of my newspaper. Gold has reached the mark of 32k :(
 the precious metal gained Rs. 320 to Rs. 32,300 per 10 gram in the Delhi market and has gained Rsthe precious metal gained Rs. 320 to Rs 32,300 per 10 gram in the Delhi market and has gained Rs. 1,555 in the last fortnight in the wake of continued uncertainty in Europe. In Mumbai, gold climbed up by Rs. 220 to end at Rs 31,700 per 10 gram from Wednesday's closing level of Rs. 31,480. In the international market, the yellow metal hit a six-month high of $1,701 an ounce, and is now twice as precious as it was in 2008, when the global financial crisis hit the economy. 1,555 in the last fortnight in the wake of continued uncertainty in Europe. In Mumbai, gold climbed up by Rs. 220 to end at Rs 31,700 per 10 gram from Wednesday's closing level of Rs 31,480. In the international market, the yellow metal hit a six-month high of $1,701 an ounce, and is now twice as precious as it was in 2008, when the global financial crisis hit the economy.
Sorry brokers for keeping this expectation that gold will come down to 28K as per my budget but it's not :( 
Now there is very strong possibility that it will shoot to 35K as well by the arrival of Hindu celebration Dhanteras. With the Rupee loss investors are making safe bet to Gold.

Equity high

Indian equities rose for the first time in five days ahead of a report tomorrow on the nation’s economic growth and a speech by U.S. Federal Reserve Chairman.

The BSE India Sensitive Index (SENSEX), or Sensex, increased 0.3 percent to 17,541.64, rebounding from an intraday drop of 0.7 percent, as investors closed bearish bets following the expiry of derivative contracts. Hindustan Unilever Ltd. (HUVR), the biggest home products maker, ITC Ltd. (ITC), the largest cigarette company, and Tata Consultancy Services Ltd. (TCS), the top software  exporter, all rallied to a record.

In the 50-stock S&P CNX Nifty Index futures were at 56.3 percent at 4:25 p.m., compared with 70 percent in July, this year, helped by the biggest overseas equity investments among 10 Asian markets tracked by Bloomberg. Foreign funds bought a net $30 million of stocks on Aug. 28, the 21st day of purchases, pushing up their investments this year to $11.8 billion, data from the regulator show. That’s the longest stretch of net buying since a record 41-day streak through Oct. 27, 2010, Bloomberg data show.

Independence Day "My INDIA"

In today's practical world where we continuously running towards towards money but when it comes to nation our heart running towards it. So today I am not going to put any share market news nor any money into the post instead will tell the world of my country and our first love "INDIA" I am always proud to be an Indian and love to be known as Indian only.
Our's is a diverse country with many religions and beliefs but still we are united by the nation. Dedicating this song to my nation and its people and our HEROES . This song will tell the world of our great INDIA

TaTa Steel's UK venture at negative ratings

Moody's today downgraded the rating of Tata Steel UK Holdings Ltd by one notch stating the operating environment of the European steel industry can be weak further in the coming months.

Tata Steel has now been given B3 rating by the rating agency, which said in a statement that the steel maker's debt coverage metrics are no longer consistent with its previous rating B2.

B3 rating implies that adverse business and economic conditions are likely to impair a company's capacity in meeting its financial commitments.

However, the global rating agency has kept the outlook of Tata Steel's UK venture unchanged at negative.

Besides, it has also lowered the outlook for Tata Steel India to negative from stable and downgraded the UK operation's 3.4 billion euro term loan facility and 690 million euro revolving credit facility to B3 from B2.

Ratings for both, Indian and UK operations of Tata Steel, are unlikely to go up in the near future, but could return to a stable outlook depending upon the industry environment, Moody's said.

The overseas capital flows have turned negative

India’s slowing economy, slowdown in China and worsening global risk aversion has registered a sharp fall on Friday's Stock Market with the Sensex taking a 253.37-point plunge to close below the 16,000 mark which kept investors away.
The Sensex opened flat, quickly slipped into a negative zone and closed at 15,965.16 points. The fall was triggered by weaker global shares after surveys showed Chinese factory output barely growing and powerful European manufacturing countries falling deeper into the malaise. The NSE 50-share Nifty too tumbled down by 82.65 points to 4,841.60.
Meanwhile,The rupee, meanwhile, gained 54 paise to end at 55.54 against the dollar on persistent dollar selling by exporters with the RBI hinting at the possibility of opening a separate dollar window for oil firms. However, with a 0.3 per cent on the week, the domestic currency posted a ninth consecutive weekly drop, worst losing streak since the Lehman crisis.
“The overseas capital flows have turned negative in the wake of the controversy over GAAR, Vodafone tax dispute and weak economic fundamentals,” Amar Ambani, head of Research, IIFL, said. Investors wealth, or market capitalisation, declined by Rs 91,000 crore. Capital goods, power, auto, refinery and IT indices logged losses of at least 2 per cent while shares of banking, metal, realty, PSUs and healthcare sectors also moved down. In the Sensex pack, 27 of the 30 stocks ended the session with losses with Tata Motors emerging as the biggest loser with a fall of 3.73 per cent.
The BSE Mid-Cap index fell 1.46 per cent, while the BSE Small-Cap index fell 1.22 per cent. Eighty two percent of the 246 mid-cap scrips declined, while 70 per cent of the 535 small-cap scrips declined on the BSE.

Rupee creates panic In India

Rupee to day went down historically  to 55.94 against dollar.  It's a big blow to Indian market and throws the market into deep tention and volatility. Even though the country's FM Pranab Mukherjee said the Govt. is taking steps to arrest the volatilitynin the forex market.
With the Rupee fall leading to a jump in oil import bill, petroleum minister S. Jaipal Reddy to day said there was an immediate need to raise fuel prices, but refused to say when the hike will take place. Meanwhile, the OECD has forecast that India's growth was likely to rise to 7.7 % in 2013, but the growth rate through much of this year would remain subdued.

  Till now midcap down at 54.60%, Sensex at 120 down, Nifty 37.20%

Where IMF helping financial markets and US steping back

The International Monetary Fund, armed with a replenished arsenal containing billions of dollars to battle Europe's lingering debt crisis, now must press governments in the eurozone to carry out bold changes to reassure nervous financial markets and avert sending the crisis into a more dangerous phase.
The IMF's final communique Saturday after hours of high-level meetings did not go beyond saying what structural reforms were needed to restore fiscal health and spur economic growth in the 17 countries that use the euro. 
During the weekend meetings of the IMF and its sister institution, the World Bank, finance ministers and central bank governors said the threat of a sharp global slowdown had eased, but still used words like "weak," ''fragile" and "challenging" to describe the outlook for the future.
The major accomplishment of the weekend was the pledge of at least $430 billion from individual countries that will nearly double IMF's reserves available for loans to almost $1 trillion.
 The additional $430 billion in resources was announced by IMF Managing Director Christine Lagarde  following meetings of finance officials of the Group of 20 major economic powers Friday. The United States and Canada were two rich countries that did not make pledges. The United States would face problems winning support for increased support for the IMF and Canada expressed the view that Europe, as a rich continent, had sufficient resources to deal with its debt problems.
 Lagarde said Russia, India, China and Brazil had made private pledges but did not want to make public commitments until they had conferred with officials back home. This group has pushed for the IMF to put in place a 2010 agreement giving fast-growing, emerging economies such as theirs more of a voice in the agency's decision-making.

Latest buzz

Infosys Ltd. (INFY), India’s second largest software-services exporter, was at the lowest most in nine years in New York trading. American depositary receipts of the Bangalore, India-based company tumbled 14 percent to $49.05  in New York, their biggest drop since April 10, 2003. The stock earlier slid as much as 15 percent to $48.52. Infosys’ Mumbai-traded shares lost 13 percent to 2,402.55 rupees, the equivalent of $46.64.
Sales in the year that began April 1 may be between 384.3 billion rupees ($7.5 billion) and 391.4 billion rupees, Infosys said in a statement today. Analysts expected revenue of 396.3 billion rupees for the period, the median of 64 estimates compiled by Bloomberg. The company also reported fourth-quarter sales that were lower than analysts predicted.
Infosys has typically outperformed the industry.
ADRs of Wipro Ltd. (WPRO), India’s third-largest software exporter, was5.5 percent low in New York to $10.18, after earlier sliding as much as 5.9 percent.
The Bank of New York Mellon Corp. India ADR Index slid 6.5 percent to 1,017.36, the largest drop since August to the lowest level since January, based on closing prices.

US market were all down; DOW: -0.49%, S&P 500: -0.75%, NASDAQ: -1.06%
EUROPE                         STOXX 50: -2.58%; FTSE 100: -1.03%; DAX: -2.36%
ASIA was at green side NIKKEI: 1.19%; TOPIX: 0.69%; HANG SENG: 1.84%

India's trade to Japn

India’s new trade to japan that seeks to more than double trade to $5 billion by 2014 through duty cuts, came into force today. Japan has removed almost all tariffs on industrial products, some agricultural items- such as mangoes, citrus, fruits, and spices, textiles, petrochemical and chemical products, cement and jewellery.
The import of Japanese consumer goods such as mobile phones-including SIM cards and memory cards calculators, chargers, compact discs, DVDs and video cameras and textiles such as woven and silk fabrics will become duty free.

Battle against Inflation- India

THE ECONOMIC BOOM HAS LED TO A SURGE IN WAGES BUT SUPPLY OF PRODUCTS AND SERVICES HAS NOT KEPT PACE WITH SUCH DEMAND- CREATING A CLASSIC WHERE TOO MUCH MONEY CHASES TOO FEW GOOD, SPARKING INFLATION.
The RBI believes that centre now faces a huge challenge in setting its finances in order and may slip up on its target of capping fiscal deficit at 4.6% of GDP this year. "It is important to recognize that in the absence of appropriate actions for addressing supply bottlenecks, especially in food and infrastructure, questions about the ability of the economy to sustain the current growth rate without significant inflationary pressures come to the fore," RBI governor Duvvuri Subbarao said while presenting the first quarter review of the monetary policy in Mumbai.
"the large fiscal deficit has been a key source of demand pressures. Fiscal consolidation is therefore critical to managing inflation. While meeting quantitative targets, the govt. also need to focus on the quality of expenditure to sustain the fiscal consolidation process, which, in turn will help contain aggregate demand and raise potential output," the RBI said.