General Affairs
Kashmir isn't India's internal issue, say separatists as PM Modi takes a tough stand on crisis
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Prime Minister Narendra Modi met national party leaders on Friday to seek ways to end weeks of unrest in Kashmir, but a separatist group said there would be no peace until Indian politicians stop treating it as a purely internal issue.
Indian security forces killed Hizbul commander Burhan Wani on 8 July, sparking violent protests across the Himalayan region, which is split into areas ruled by India and Pakistan. Both countries claim sovereignty of all of Kashmir.
Police extended a curfew in parts of the Muslim-majority territory for a 35th day on Friday and mobile telephone networks were suspended from late on Thursday due to worries about fresh violence following Friday prayers.
National opposition leaders have stepped up calls for an all-party delegation to visit Kashmir for talks with regional leaders.
But Modi maintained a tough line on Friday, telling party leaders in New Delhi that now was not the time to send negotiators and that there must be no compromise on national security.
Modi's BJP rules Kashmir in a power-sharing arrangement with a regional party and has long advocated a tough stance toward the decades-long insurgency.
With 54 protesters killed since early July, one of the two factions of the main separatist alliance, the Hurriyat Conference, said there was no sign of anger abating.
"Unless there is an acknowledgement among all political parties in India that Kashmir is a dispute and not an internal issue and has to be addressed accordingly, there is very little chance of the situation improving or real peace returning," said faction chairman Mirwaiz Umar Farooq.
Modi's government has shunned talks with Hurriyat and other groups that challenge India's claim, putting on hold peace talks with Pakistan, telling it to first rein in anti-India militants operating from its territory. Pakistan rejects allegations that such militants operate from its soil.
A resolution by India's lower house of parliament on Friday urged steps to restore peace but analyst Ajai Sahni said Modi's government appeared short of ideas on how to achieve that.
"I don't see anything in terms of a strategy," said Sahni, of the Delhi-based Institute for Conflict Management. "The government and the separatists are speaking in completely divergent voices."
Prime Minister Narendra Modi met national party leaders on Friday to seek ways to end weeks of unrest in Kashmir, but a separatist group said there would be no peace until Indian politicians stop treating it as a purely internal issue.
Indian security forces killed Hizbul commander Burhan Wani on 8 July, sparking violent protests across the Himalayan region, which is split into areas ruled by India and Pakistan. Both countries claim sovereignty of all of Kashmir.
Police extended a curfew in parts of the Muslim-majority territory for a 35th day on Friday and mobile telephone networks were suspended from late on Thursday due to worries about fresh violence following Friday prayers.
National opposition leaders have stepped up calls for an all-party delegation to visit Kashmir for talks with regional leaders.
But Modi maintained a tough line on Friday, telling party leaders in New Delhi that now was not the time to send negotiators and that there must be no compromise on national security.
Modi's BJP rules Kashmir in a power-sharing arrangement with a regional party and has long advocated a tough stance toward the decades-long insurgency.
With 54 protesters killed since early July, one of the two factions of the main separatist alliance, the Hurriyat Conference, said there was no sign of anger abating.
"Unless there is an acknowledgement among all political parties in India that Kashmir is a dispute and not an internal issue and has to be addressed accordingly, there is very little chance of the situation improving or real peace returning," said faction chairman Mirwaiz Umar Farooq.
Modi's government has shunned talks with Hurriyat and other groups that challenge India's claim, putting on hold peace talks with Pakistan, telling it to first rein in anti-India militants operating from its territory. Pakistan rejects allegations that such militants operate from its soil.
A resolution by India's lower house of parliament on Friday urged steps to restore peace but analyst Ajai Sahni said Modi's government appeared short of ideas on how to achieve that.
"I don't see anything in terms of a strategy," said Sahni, of the Delhi-based Institute for Conflict Management. "The government and the separatists are speaking in completely divergent voices."
Parliament Monsoon Session scripts history with GST Bill, boosts Congress, BJP bonhomie
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What a Monsoon Session in Parliament India witnessed this time! Exactly a year ago it was a complete wash out as the heightened ruckus had forced Lok Sabha Speaker Sumitra Mahajan to take an unprecedented action of suspending 25 Congress MPs for five days.
Last year extreme bitterness soured relationship between the Congress and the BJP and the session ended on 13 August with no work done even at the risk of important bills like the GST getting delayed.
A year later, on 12 August, 2016, on the conclusion of the Monsoon Session things look completely opposite. The shrill war cries and placards from the main Opposition party Congress gave way to measured debates and healthy criticism -- a welcome change that epitomises the Indian parliamentary democracy.
This short session of 20 working days will be remembered as one of the most productive sessions and will go down in history, as one of the most contentious GST (Goods and Services Bill, the 122nd Constitutional Amendment Bill), got passed. This Bill literally paved the way for the single biggest and most transformative -- One India One Tax reform. The Bill, which had gone through 13 long years of deliberations and had seen deep divide among major political parties, was ultimately passed with all present and voting in favour of the Bill, with no one voting against it.
More so, the Session ended on a note of broad parliamentary camaraderie that was never seen before, at least in the last few decades -- the Prime Minister chairing an all-party meeting on Kashmir. The opposition leaders had demanded this meeting and it was promptly accepted by the government. The Session saw the passage of 15 bills, introduction of 14 new bills as against the initial plan of six bills and debate on a number of issues of national interests including on self-styled Gau Rakshaks, atrocities against dalits and Kashmir unrest. In fact, the turmoil in Kashmir was discussed four times including an over six-hour debate on Wednesday, something about which Home Minister Rajnath Singh said that he had not seen in his two decade long parliamentary career.
The question is who should get credit for smooth functioning of Parliament, for turning sharply conflicting positions to a broad consensus on critical issues. Besides, the GST and other legislative matters, there were at least two other occasions -- first, Home Minister Rajnath Singh's statement on his Pakistan visit where tough talk on terrorism against the host nation was blacked out; second debate on turmoil in Kashmir -- a broad national consensus was seen in Parliament.
Should PM Modi claim credit? Or is it actually the Opposition, particularly the Congress which made it possible for Parliament to function smoothly? Has Congress vice-president Rahul Gandhi mellowed and matured? Or is it the prominent regional parties whose pressure to discuss and debate issues finally helped? To find an answer one has to compare and see what has changed between previous year's Monsoon and Winter sessions and this year's monsoon Session.
It's true that primarily it is the government's responsibility to convene Parliament as per the norm, list business and ensure its smooth functioning. But Parliament is as much of Opposition members as much it is of ruling treasury bench members. Thus the responsibility of smooth functioning is shared. If PM Modi and his government claims credit, the opposition parties too equally has a claim over it. The longer hours of sitting beyond scheduled hours or even otherwise, requires that members from all sides, at least to fill the quorum are present in the House. This can't be possible without cooperation from the Opposition.
Last year extreme bitterness soured relationship between the Congress and the BJP and the session ended on 13 August with no work done even at the risk of important bills like the GST getting delayed.
A year later, on 12 August, 2016, on the conclusion of the Monsoon Session things look completely opposite. The shrill war cries and placards from the main Opposition party Congress gave way to measured debates and healthy criticism -- a welcome change that epitomises the Indian parliamentary democracy.
This short session of 20 working days will be remembered as one of the most productive sessions and will go down in history, as one of the most contentious GST (Goods and Services Bill, the 122nd Constitutional Amendment Bill), got passed. This Bill literally paved the way for the single biggest and most transformative -- One India One Tax reform. The Bill, which had gone through 13 long years of deliberations and had seen deep divide among major political parties, was ultimately passed with all present and voting in favour of the Bill, with no one voting against it.
More so, the Session ended on a note of broad parliamentary camaraderie that was never seen before, at least in the last few decades -- the Prime Minister chairing an all-party meeting on Kashmir. The opposition leaders had demanded this meeting and it was promptly accepted by the government. The Session saw the passage of 15 bills, introduction of 14 new bills as against the initial plan of six bills and debate on a number of issues of national interests including on self-styled Gau Rakshaks, atrocities against dalits and Kashmir unrest. In fact, the turmoil in Kashmir was discussed four times including an over six-hour debate on Wednesday, something about which Home Minister Rajnath Singh said that he had not seen in his two decade long parliamentary career.
The question is who should get credit for smooth functioning of Parliament, for turning sharply conflicting positions to a broad consensus on critical issues. Besides, the GST and other legislative matters, there were at least two other occasions -- first, Home Minister Rajnath Singh's statement on his Pakistan visit where tough talk on terrorism against the host nation was blacked out; second debate on turmoil in Kashmir -- a broad national consensus was seen in Parliament.
Should PM Modi claim credit? Or is it actually the Opposition, particularly the Congress which made it possible for Parliament to function smoothly? Has Congress vice-president Rahul Gandhi mellowed and matured? Or is it the prominent regional parties whose pressure to discuss and debate issues finally helped? To find an answer one has to compare and see what has changed between previous year's Monsoon and Winter sessions and this year's monsoon Session.
It's true that primarily it is the government's responsibility to convene Parliament as per the norm, list business and ensure its smooth functioning. But Parliament is as much of Opposition members as much it is of ruling treasury bench members. Thus the responsibility of smooth functioning is shared. If PM Modi and his government claims credit, the opposition parties too equally has a claim over it. The longer hours of sitting beyond scheduled hours or even otherwise, requires that members from all sides, at least to fill the quorum are present in the House. This can't be possible without cooperation from the Opposition.
Cross-border terrorism root cause of Kashmir unrest: 10 things Modi said at all-party meet
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Prime Minister Narendra Modi on Friday said the NDA-government is committed to restoring normalcy in the Kashmir Valley and is reaching out to the civil society to deal with the situation. The PM was addressing an all-party meeting convened to discuss ways to address tension in the Valley erupted after the killing of terrorist Burhan Wani,
Here are the highlights of PM's speech at the all-party meet:
1) Cross-border terrorism, supported by Pakistan, is the root cause of turbulence in the valley
2) Like every Indian, I am deeply pained that students are unable to study (in the valley). (Even) the apples produced in large quantity in the valley are not reaching markets and government offices are unable to carry out public welfare works.
3) The government is ready to address "grievances" of all sections of people in Jammu and Kashmir as per the Constitution. But there cannot be any compromise with the nation's integrity.
4) We will speed up the political process to protect our democracy, the PM said.
5) Pakistan-occupied Kashmir is a part of Jammu and Kashmir. India will fight terrorism with full might and commitment, PM said. The government's efforts include reaching out to the civil society and speeding up measures to integrate Kashmir's youth with the state's economic activities.
6) External Affairs Ministry should contact citizens of Pakistan-occupied Kashmir, living in different parts of the world, to get details of the area's pitiable condition and share them with the international community.
7) Seeking support of all political parties, the prime minister said, "When terrorism is on the rise across the world and when we are encircled by terrorism sponsored by the neighbouring country, we will have to be united in this fight. The government expects constructive support from all opposition parties on this."
8) "I have complete confidence that with the dedication of the state government and with your total cooperation, we will soon restore normal life in Jammu and Kashmir again," Modi said as he praised Chief Minister Mehbooba Mufti's government, in which BJP is a partner, for its "careful handling" of the issue despite odds.
9) Invoking former Prime Minister Atal Bihari Vajpayee, Modi said his government would follow the path shown by him, a reference to the former Prime Minister's offer to hold dialogue under the framework of 'insaniyat (humanity), jamhuriyat (democracy) and Kashmiriyat'.
10) "Whoever get killed, whether civilians or security forces, we all feel the pain. I have full sympathies with their families. We are committed to providing good health care to the injured and also towards restoring peace in the valley so that people could live their normal lives...," Modi said.
Here are the highlights of PM's speech at the all-party meet:
1) Cross-border terrorism, supported by Pakistan, is the root cause of turbulence in the valley
2) Like every Indian, I am deeply pained that students are unable to study (in the valley). (Even) the apples produced in large quantity in the valley are not reaching markets and government offices are unable to carry out public welfare works.
3) The government is ready to address "grievances" of all sections of people in Jammu and Kashmir as per the Constitution. But there cannot be any compromise with the nation's integrity.
4) We will speed up the political process to protect our democracy, the PM said.
5) Pakistan-occupied Kashmir is a part of Jammu and Kashmir. India will fight terrorism with full might and commitment, PM said. The government's efforts include reaching out to the civil society and speeding up measures to integrate Kashmir's youth with the state's economic activities.
6) External Affairs Ministry should contact citizens of Pakistan-occupied Kashmir, living in different parts of the world, to get details of the area's pitiable condition and share them with the international community.
7) Seeking support of all political parties, the prime minister said, "When terrorism is on the rise across the world and when we are encircled by terrorism sponsored by the neighbouring country, we will have to be united in this fight. The government expects constructive support from all opposition parties on this."
8) "I have complete confidence that with the dedication of the state government and with your total cooperation, we will soon restore normal life in Jammu and Kashmir again," Modi said as he praised Chief Minister Mehbooba Mufti's government, in which BJP is a partner, for its "careful handling" of the issue despite odds.
9) Invoking former Prime Minister Atal Bihari Vajpayee, Modi said his government would follow the path shown by him, a reference to the former Prime Minister's offer to hold dialogue under the framework of 'insaniyat (humanity), jamhuriyat (democracy) and Kashmiriyat'.
10) "Whoever get killed, whether civilians or security forces, we all feel the pain. I have full sympathies with their families. We are committed to providing good health care to the injured and also towards restoring peace in the valley so that people could live their normal lives...," Modi said.
Central govt to celebrate Independence Day by visiting birth places of freedom fighters
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As the central government plans to celebrate in a big way the 'Festival of Independence', Union ministers will visit birthplaces of freedom fighters and border outposts across the country.
"The aim is to bring back to public consciousness the forgotten or unknown heroes. Let the contribution of people from one region be known in others," Information and Broadcasting Minister M Venkaiah Naidu said on Friday, giving details of the plans.
Women ministers, including Uma Bharati, Harsimrat Kaur and Smriti Irani, will visit border outposts and tie rakhis on the jawans, while leading singers Asha Bhonsle, Kumar Sanu, Manoj Tewari will take part in events organised by paramilitary forces.
Naidu said Prime Minister Narendra Modi had last week visited Bhabhra in Madhya Pradesh where Chandrashekhar Azad was born while he had also visited August Kranti maidan in Mumbai.
Home Minister Rajnath Singh will visit Shahjahanpur in Uttar Pradesh which is associated with Ashfaque Ali and Ram Prasad Bismil. Finance Minister Arun Jaitley will visit Jallianwala Bagh in Punjab and Hiranagar in Jammu and Kashmir.
Railway minister Suresh Prabhu will visit Dandi in Gujarat, while Science and Technology Minister Harsh Vardhan will visit Mahatma Gandhi's birthplace in Porbandar.
Defence Minister Manohar Parrikar will visit the historic Cellular Jail in Port Blair while Minister of State for I&B Rajyavardhan Rathore will visit Meerut.
Naidu asked how many people, for instance, know about Rani Gaidinliu and stressed the need for creating awareness about these heroic figures who had participated in the freedom struggle.
The idea of India is being reinforced through this festival, he said.
As per the plan, patriotic songs will be played on AIR, DD and FM while various programmes on freedom fighters will also be aired during the festival.
"The aim is to bring back to public consciousness the forgotten or unknown heroes. Let the contribution of people from one region be known in others," Information and Broadcasting Minister M Venkaiah Naidu said on Friday, giving details of the plans.
Women ministers, including Uma Bharati, Harsimrat Kaur and Smriti Irani, will visit border outposts and tie rakhis on the jawans, while leading singers Asha Bhonsle, Kumar Sanu, Manoj Tewari will take part in events organised by paramilitary forces.
Naidu said Prime Minister Narendra Modi had last week visited Bhabhra in Madhya Pradesh where Chandrashekhar Azad was born while he had also visited August Kranti maidan in Mumbai.
Home Minister Rajnath Singh will visit Shahjahanpur in Uttar Pradesh which is associated with Ashfaque Ali and Ram Prasad Bismil. Finance Minister Arun Jaitley will visit Jallianwala Bagh in Punjab and Hiranagar in Jammu and Kashmir.
Railway minister Suresh Prabhu will visit Dandi in Gujarat, while Science and Technology Minister Harsh Vardhan will visit Mahatma Gandhi's birthplace in Porbandar.
Defence Minister Manohar Parrikar will visit the historic Cellular Jail in Port Blair while Minister of State for I&B Rajyavardhan Rathore will visit Meerut.
Naidu asked how many people, for instance, know about Rani Gaidinliu and stressed the need for creating awareness about these heroic figures who had participated in the freedom struggle.
The idea of India is being reinforced through this festival, he said.
As per the plan, patriotic songs will be played on AIR, DD and FM while various programmes on freedom fighters will also be aired during the festival.
Defence Ministry to take a call on the purchase of Rafale fighter jets
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The Defence Ministry's top acquisition council is likely to take up this month the final report submitted by a team negotiating the much-anticipated Rafale fighter jet deal with France.
The Defence Acquisition Council (DAC), chaired by Defence Minister Manohar Parrikar, is likely to meet on 18 August.
The Council had last month reviewed the multi-billion Euro Rafale deal and directed the Indian negotiating team to submit its report "expeditiously".
"The negotiating team has submitted its report which is under examination," the Minister said in a written reply to the Lok Sabha on Friday.
During his visit to France in April last year, Prime Minister Narendra Modi had announced that India would purchase 36 Rafale jets in a government-to-government contract.
Soon after the announcement, the Defence Ministry scrapped a separate process that was on to purchase 126 Rafale fighter planes, built by French defence giant Dassault Aviation.
The new deal comes with the clause of delivering 50 percent offsets, creating business worth at least 3 billion Euros for smaller Indian companies and generating thousands of jobs in India through offsets.
The commercial negotiations on the pricing of the planes, equipment and other issues began in mid-January this year.
The Defence Ministry's top acquisition council is likely to take up this month the final report submitted by a team negotiating the much-anticipated Rafale fighter jet deal with France.
The Defence Acquisition Council (DAC), chaired by Defence Minister Manohar Parrikar, is likely to meet on 18 August.
The Council had last month reviewed the multi-billion Euro Rafale deal and directed the Indian negotiating team to submit its report "expeditiously".
"The negotiating team has submitted its report which is under examination," the Minister said in a written reply to the Lok Sabha on Friday.
During his visit to France in April last year, Prime Minister Narendra Modi had announced that India would purchase 36 Rafale jets in a government-to-government contract.
Soon after the announcement, the Defence Ministry scrapped a separate process that was on to purchase 126 Rafale fighter planes, built by French defence giant Dassault Aviation.
The new deal comes with the clause of delivering 50 percent offsets, creating business worth at least 3 billion Euros for smaller Indian companies and generating thousands of jobs in India through offsets.
The commercial negotiations on the pricing of the planes, equipment and other issues began in mid-January this year.
Business Affairs
July retail inflation stays above RBI target
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Soaring food prices in July kept headline inflation above the Reserve Bank of India's (RBI) near-term target, underscoring the challenge facing the next central bank governor.
Consumer prices rose at a faster-than-expected pace to 6.07 percent last month from a year ago, up from June's 5.77 percent annual gain, government data showed on Friday. Economists surveyed by Reuters had expected retail inflation to come in at 5.90 percent.
It is the fourth straight reading above the RBI's target of 5 percent by March 2017.
At his last monetary policy review on Tuesday, central bank chief Raghuram Rajan left key interest rates unchanged, flagging upside risks to the inflation target.
The former International Monetary Fund chief economist is due to step down as RBI governor on September 4, after a three-year term, to return to academia.
While Prime Minister Narendra Modi's government has yet to pick a successor, it has bound the next governor with Rajan's retail inflation target of 4 percent, with a band of 2 percent on either side, for the next five years.
Retail food prices surged 8.35 percent year-on-year last month, much faster than a 7.79 percent annual increase in June.
Above-average monsoon rains this summer have raised hopes of a boost to farm output and an ensuing drop in food inflation. Already, there are signs vegetable prices are edging down.
However, the outlook for core inflation remains uncertain due to a shrinking output gap and an expected pickup in demand-driven price pressures, following full implementation of a major hike in government salaries and pensions.
Pay hikes are also expected to make it tougher for Finance Minister Arun Jaitley achieve the fiscal deficit target of 3.5 percent of GDP in the current fiscal year.
Jaitley told lawmakers on Friday he would need more money to cover the payout.
A looser fiscal stance could boost inflationary expectations, economists warn, as the government pays higher wages and keeps capital investment high in the hope that private sector activity will then pick up.
"The central bank faces a difficult task in meeting its inflation targets," said Shilan Shah, India economist at Capital Economics.
SALES-TAX IMPACT SEEN
The roll-out of a new national sales tax planned for next April is also expected to push up inflation. A government-appointed panel has suggested a standard Goods and Services Tax rate of 17 percent to 18 percent, but India's states want a higher level.
Morgan Stanley reckons a higher rate could push up retail inflation as much as 0.7 percentage points.
Economists don't see much steam left in the RBI's current easing cycle, in which the policy repo rate has come down by 150 basis points since January 2015, to its lowest in more than five years.
Most expect another cut of 25 basis points by December, before the central bank hits the pause button. But much will depend on who replaces Rajan.
"The appointment of a more dovish candidate as the next governor would raise the chances of further monetary loosening," Shah said.
Separately, industrial production expanded 2.1 percent in June from a year earlier, faster than a revised 1.1 percent rise, government data showed.
The rise was primarily led by expansion in electricity and mining production.
The industrial output data is based on an old series not reflected in India's current gross domestic product figures. As a result, analysts set little store by those numbers as a guide to the economy's broader health.
Soaring food prices in July kept headline inflation above the Reserve Bank of India's (RBI) near-term target, underscoring the challenge facing the next central bank governor.
Consumer prices rose at a faster-than-expected pace to 6.07 percent last month from a year ago, up from June's 5.77 percent annual gain, government data showed on Friday. Economists surveyed by Reuters had expected retail inflation to come in at 5.90 percent.
It is the fourth straight reading above the RBI's target of 5 percent by March 2017.
At his last monetary policy review on Tuesday, central bank chief Raghuram Rajan left key interest rates unchanged, flagging upside risks to the inflation target.
The former International Monetary Fund chief economist is due to step down as RBI governor on September 4, after a three-year term, to return to academia.
While Prime Minister Narendra Modi's government has yet to pick a successor, it has bound the next governor with Rajan's retail inflation target of 4 percent, with a band of 2 percent on either side, for the next five years.
Retail food prices surged 8.35 percent year-on-year last month, much faster than a 7.79 percent annual increase in June.
Above-average monsoon rains this summer have raised hopes of a boost to farm output and an ensuing drop in food inflation. Already, there are signs vegetable prices are edging down.
However, the outlook for core inflation remains uncertain due to a shrinking output gap and an expected pickup in demand-driven price pressures, following full implementation of a major hike in government salaries and pensions.
Pay hikes are also expected to make it tougher for Finance Minister Arun Jaitley achieve the fiscal deficit target of 3.5 percent of GDP in the current fiscal year.
Jaitley told lawmakers on Friday he would need more money to cover the payout.
A looser fiscal stance could boost inflationary expectations, economists warn, as the government pays higher wages and keeps capital investment high in the hope that private sector activity will then pick up.
"The central bank faces a difficult task in meeting its inflation targets," said Shilan Shah, India economist at Capital Economics.
SALES-TAX IMPACT SEEN
The roll-out of a new national sales tax planned for next April is also expected to push up inflation. A government-appointed panel has suggested a standard Goods and Services Tax rate of 17 percent to 18 percent, but India's states want a higher level.
Morgan Stanley reckons a higher rate could push up retail inflation as much as 0.7 percentage points.
Economists don't see much steam left in the RBI's current easing cycle, in which the policy repo rate has come down by 150 basis points since January 2015, to its lowest in more than five years.
Most expect another cut of 25 basis points by December, before the central bank hits the pause button. But much will depend on who replaces Rajan.
"The appointment of a more dovish candidate as the next governor would raise the chances of further monetary loosening," Shah said.
Separately, industrial production expanded 2.1 percent in June from a year earlier, faster than a revised 1.1 percent rise, government data showed.
The rise was primarily led by expansion in electricity and mining production.
The industrial output data is based on an old series not reflected in India's current gross domestic product figures. As a result, analysts set little store by those numbers as a guide to the economy's broader health.
Sensex rises 293 pts to go past 28K; Nifty above 8,600
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Equities jumped Friday for the second day as the benchmark BSE Sensex recaptured the 28,000-level by surging 293 points and NSE Nifty breached the 8,600-mark on continued buying by investors ahead of IIP and inflation data.
Brokers said widening of positions by participants ahead of key economic data-industrial production (IIP) for June and consumer price index (CPI) for July to be released after market closing-helped boost trading sentiment.
Domestic markets took cues from firming trend at other Asian bourses and higher opening in European market following a record close overnight at Wall Street in view of surging oil prices.
For the week, the Sensex rose by 74.05 points, or 0.26 per cent, while the Nifty shed 11 points, or 0.12 per cent.
The BSE Sensex surged 292.80 points, or 1.05 per cent, to end at 28,152.40 on widespread gains ahead of release of key macroeconomic data-IIP for June and Consumer Price Index-based inflation (CPI) for July.
The gauge had gained 84.72 points in yesterday's trade.
The broader NSE Nifty recaptured the 8,600-mark and ended at 8,672.15, up 80 points or 0.93 per cent. Intra-day, it moved between 8,684.30 and 8,604.45.
SBI stock surged 7.16 per cent to Rs 243.20 despite posting a massive 77.8 per cent fall in its net profit at Rs 1,046 crore for the June quarter. Axis Bank shares rose 3.99 per cent to Rs 590.75 and Tata Motors by 2.58 per cent to Rs 515.25.
Other big movers of the day are Power grid (2.24 per cent, RIL (2.22 per cent), HDFC ltd (2.21 per cent ), M&M (2.12 per cent), Tata Steel (1.71 per cent), ICICI Bank (1.49 per cent), Adaniports (1.46 per cent), TCS (1.04 per cent), L&T( 0.96 per cent) and ONGC ( 0.87 per cent).
Oil stocks led by RIL and ONGC were also in limelight as crude oil extended their rally in global markets.
Among sectoral indices, banking index rose the most by 2.03 per cent followed by metal 1.26 per cent, PSU 1.18 per cent, auto 1.07 per cent, infrastructure 0.99 per cent, power 0.82 per cent, capital goods 0.64 per cent, FMCG 0.61 per cent and consumer durables 0.26 per cent.
European markets were trading narrowly mixed as key indices like France and Germany moved down by 0.16 pct to 0.37 pct while UK's FTSE was quoted higher by 0.09 pct.
US stocks edged higher yesterday with the Dow Jones Industrial Average, the Nasdaq Composite index and the S&P 500 index closing at record highs, amid sharp gains in crude oil prices and strong quarterly results from retailers.
State Bank of India (SBI) jumped by 7.16 per cent to Rs 243.20 after after the bank reported smaller-than-expected decline in net profit in Q1 June 2016 and also reported less than expected increase in bad loans.
The BSE Mid-Cap index was provisionally up 0.83 per cent. The BSE Small-Cap index was provisionally up 0.21 per cent. Both these indices underperformed the Sensex.
Turning to the domestic market, 22 scrips out of the 30- share sensex ended higher while remaining eight closed lower.
Other gainers were Axis Bank 3.99 pct, Tata Motors 2.58 pct, Powergrid 2.24 pct, Reliance 2.22 pct, HDFC 2.21 pct, M&M 2.12 pct, Tata Steel 1.71 pct, ICICI Bank 1.49 pct, Adani Ports 1.46 pct and TCS 1.04 pct.
However, Infosys fell by 1.28 pct, Cipla 1.26 pct, Sun Pharma 0.88 pct and Asian Paints 0.57 pct.
Among the S&P BSE sectoral indices, Bankex rose by 2.03 pct followed by Finance 1.78 pct, Metal 1.26 pct, Auto 1.07 pct, Industrials 0.92 pct, Power 0.82 pct, Energy 0.79 pct and Capital Goods 0.64 pct, while Realty fell by 0.48 pct followed by IT 0.44 pct and Telecom 0.10 pct.
The market breadth remained negative as 1,392 stocks closed in red while 1,264 stocks finished in green and 182 ruled steady.
The total turnover rose to Rs 3,996.38 crore from Rs 3,406.04 crore on Thursday.
Equities jumped Friday for the second day as the benchmark BSE Sensex recaptured the 28,000-level by surging 293 points and NSE Nifty breached the 8,600-mark on continued buying by investors ahead of IIP and inflation data.
Brokers said widening of positions by participants ahead of key economic data-industrial production (IIP) for June and consumer price index (CPI) for July to be released after market closing-helped boost trading sentiment.
Domestic markets took cues from firming trend at other Asian bourses and higher opening in European market following a record close overnight at Wall Street in view of surging oil prices.
For the week, the Sensex rose by 74.05 points, or 0.26 per cent, while the Nifty shed 11 points, or 0.12 per cent.
The BSE Sensex surged 292.80 points, or 1.05 per cent, to end at 28,152.40 on widespread gains ahead of release of key macroeconomic data-IIP for June and Consumer Price Index-based inflation (CPI) for July.
The gauge had gained 84.72 points in yesterday's trade.
The broader NSE Nifty recaptured the 8,600-mark and ended at 8,672.15, up 80 points or 0.93 per cent. Intra-day, it moved between 8,684.30 and 8,604.45.
SBI stock surged 7.16 per cent to Rs 243.20 despite posting a massive 77.8 per cent fall in its net profit at Rs 1,046 crore for the June quarter. Axis Bank shares rose 3.99 per cent to Rs 590.75 and Tata Motors by 2.58 per cent to Rs 515.25.
Other big movers of the day are Power grid (2.24 per cent, RIL (2.22 per cent), HDFC ltd (2.21 per cent ), M&M (2.12 per cent), Tata Steel (1.71 per cent), ICICI Bank (1.49 per cent), Adaniports (1.46 per cent), TCS (1.04 per cent), L&T( 0.96 per cent) and ONGC ( 0.87 per cent).
Oil stocks led by RIL and ONGC were also in limelight as crude oil extended their rally in global markets.
Among sectoral indices, banking index rose the most by 2.03 per cent followed by metal 1.26 per cent, PSU 1.18 per cent, auto 1.07 per cent, infrastructure 0.99 per cent, power 0.82 per cent, capital goods 0.64 per cent, FMCG 0.61 per cent and consumer durables 0.26 per cent.
European markets were trading narrowly mixed as key indices like France and Germany moved down by 0.16 pct to 0.37 pct while UK's FTSE was quoted higher by 0.09 pct.
US stocks edged higher yesterday with the Dow Jones Industrial Average, the Nasdaq Composite index and the S&P 500 index closing at record highs, amid sharp gains in crude oil prices and strong quarterly results from retailers.
State Bank of India (SBI) jumped by 7.16 per cent to Rs 243.20 after after the bank reported smaller-than-expected decline in net profit in Q1 June 2016 and also reported less than expected increase in bad loans.
The BSE Mid-Cap index was provisionally up 0.83 per cent. The BSE Small-Cap index was provisionally up 0.21 per cent. Both these indices underperformed the Sensex.
Turning to the domestic market, 22 scrips out of the 30- share sensex ended higher while remaining eight closed lower.
Other gainers were Axis Bank 3.99 pct, Tata Motors 2.58 pct, Powergrid 2.24 pct, Reliance 2.22 pct, HDFC 2.21 pct, M&M 2.12 pct, Tata Steel 1.71 pct, ICICI Bank 1.49 pct, Adani Ports 1.46 pct and TCS 1.04 pct.
However, Infosys fell by 1.28 pct, Cipla 1.26 pct, Sun Pharma 0.88 pct and Asian Paints 0.57 pct.
Among the S&P BSE sectoral indices, Bankex rose by 2.03 pct followed by Finance 1.78 pct, Metal 1.26 pct, Auto 1.07 pct, Industrials 0.92 pct, Power 0.82 pct, Energy 0.79 pct and Capital Goods 0.64 pct, while Realty fell by 0.48 pct followed by IT 0.44 pct and Telecom 0.10 pct.
The market breadth remained negative as 1,392 stocks closed in red while 1,264 stocks finished in green and 182 ruled steady.
The total turnover rose to Rs 3,996.38 crore from Rs 3,406.04 crore on Thursday.
SBI net profit falls 32% in Q1, bad loans rise slightly
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State Bank of India (SBI), the nation's top lender by assets, reported on Friday first-quarter net profit fell 32 per cent, in line with estimates, and its bad loans rose slightly.
SBI shares rose more than 5 per cent after the results on the lower-than-expected rise in bad loans.
The lender, which accounts for more than a fifth of country's total bank loans and deposits, said standalone net profit was Rs 2,521 crore for the three months to June 30, against Rs 3,692 crore reported a year earlier.
Analysts on average had expected a net profit of Rs 2,540 crore, according to data compiled by Thomson Reuters.
Gross bad loans as a percentage of total loans rose to 6.94 per cent as of end-June, from 6.50 per cent in March.
State Bank of India (SBI), the nation's top lender by assets, reported on Friday first-quarter net profit fell 32 per cent, in line with estimates, and its bad loans rose slightly.
SBI shares rose more than 5 per cent after the results on the lower-than-expected rise in bad loans.
The lender, which accounts for more than a fifth of country's total bank loans and deposits, said standalone net profit was Rs 2,521 crore for the three months to June 30, against Rs 3,692 crore reported a year earlier.
Analysts on average had expected a net profit of Rs 2,540 crore, according to data compiled by Thomson Reuters.
Gross bad loans as a percentage of total loans rose to 6.94 per cent as of end-June, from 6.50 per cent in March.
Savings from direct transfer of LPG subsidy much less than government claims: CAG
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The Comptroller and Auditor General (CAG) of India in its audit report on implementation of direct benefit transfer of LPG Scheme (DBTL) has revealed that the real saving from the scheme could be much less than claimed by the government.
In a report tabled in Parliament, CAG has said that the real savings from DBTL, or PAHAL as the scheme is also called, would be Rs 4,813 crore in 2015/16 instead of the Ministry of Petroleum and Natural Gas (MoPN&G) estimate of Rs 9,211 crore.
"MoPN&G assumed that the inactive or blocked consumers, who were not eligible for subsidy would have availed the entire quota of 12 cylinders against the national average per capita consumption of 6.27 cylinders in 2014-15. Considering the national average off take of 6.27 cylinders (as used by OMCs in their estimation), the estimated savings in subsidy for the year 2015-16 would be Rs 4,813 crore only," says the CAG report.
The oil marketing companies (OMCs) have also come out with an estimate on the potential savings from the scheme. Their estimate, too, is much lower than the government's estimate at Rs 5,107 crore.
According to CAG report, OMCs considered the average subsidy rate in 2014/15 while working out the subsidy savings for 2015/16, leading to an over-statement of savings in subsidy, in view of the sharp fall in prices in 2015/16.
"If the average subsidy of Rs 169.45 per cylinder in 2015/16 was considered (as used by MoPN&G in their estimation), and after considering the savings in subsidy due to opting 'Give-it Up' by 67.27 lakh consumers (as on 29 February 2016), the subsidy savings would reduce to Rs 3,473.48 crore, instead of Rs 5,107.48 crore estimated by the OMCs," says the CAG report.
The report further pointed out that the LPG subsidy payout during April 2015 to December 2015 was Rs 12,084.24 crore as against Rs 35,400.46 crore in the corresponding period a year ago. However, it attributed the sharp drop in subsidy due to the sharp fall in crude prices in 2015/16.
"The significant reduction of Rs 23,316 crore in subsidy was on account of the combined effect of decrease in off take of subsidised cylinders by consumers and lower subsidy rates due to fall in crude prices. The reduced subsidy rate on account of fall in crude oil price resulted in reduced subsidy payout of Rs 21,552.28 crore, while the effect on the same due to reduced offtake of cylinders by consumers worked out to Rs 1,764 crore. Therefore, it is evident that the lower subsidy rates in 2015-16 is, by far, the most significant factor resulted in subsidy savings," added the report.
The DBTL scheme was launched with the objective of removing incentive for diversion of LPG, weeding out fake and duplicate connections, and improving availability of LPG cylinders to genuine users. The scheme also allows consumers to give up subsidy on LPG.
The Comptroller and Auditor General (CAG) of India in its audit report on implementation of direct benefit transfer of LPG Scheme (DBTL) has revealed that the real saving from the scheme could be much less than claimed by the government.
In a report tabled in Parliament, CAG has said that the real savings from DBTL, or PAHAL as the scheme is also called, would be Rs 4,813 crore in 2015/16 instead of the Ministry of Petroleum and Natural Gas (MoPN&G) estimate of Rs 9,211 crore.
"MoPN&G assumed that the inactive or blocked consumers, who were not eligible for subsidy would have availed the entire quota of 12 cylinders against the national average per capita consumption of 6.27 cylinders in 2014-15. Considering the national average off take of 6.27 cylinders (as used by OMCs in their estimation), the estimated savings in subsidy for the year 2015-16 would be Rs 4,813 crore only," says the CAG report.
The oil marketing companies (OMCs) have also come out with an estimate on the potential savings from the scheme. Their estimate, too, is much lower than the government's estimate at Rs 5,107 crore.
According to CAG report, OMCs considered the average subsidy rate in 2014/15 while working out the subsidy savings for 2015/16, leading to an over-statement of savings in subsidy, in view of the sharp fall in prices in 2015/16.
"If the average subsidy of Rs 169.45 per cylinder in 2015/16 was considered (as used by MoPN&G in their estimation), and after considering the savings in subsidy due to opting 'Give-it Up' by 67.27 lakh consumers (as on 29 February 2016), the subsidy savings would reduce to Rs 3,473.48 crore, instead of Rs 5,107.48 crore estimated by the OMCs," says the CAG report.
The report further pointed out that the LPG subsidy payout during April 2015 to December 2015 was Rs 12,084.24 crore as against Rs 35,400.46 crore in the corresponding period a year ago. However, it attributed the sharp drop in subsidy due to the sharp fall in crude prices in 2015/16.
"The significant reduction of Rs 23,316 crore in subsidy was on account of the combined effect of decrease in off take of subsidised cylinders by consumers and lower subsidy rates due to fall in crude prices. The reduced subsidy rate on account of fall in crude oil price resulted in reduced subsidy payout of Rs 21,552.28 crore, while the effect on the same due to reduced offtake of cylinders by consumers worked out to Rs 1,764 crore. Therefore, it is evident that the lower subsidy rates in 2015-16 is, by far, the most significant factor resulted in subsidy savings," added the report.
The DBTL scheme was launched with the objective of removing incentive for diversion of LPG, weeding out fake and duplicate connections, and improving availability of LPG cylinders to genuine users. The scheme also allows consumers to give up subsidy on LPG.
NHAI identifies 15,000 km of roads for four-laning
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National Highways Authority of India (NHAI) will convert about 15,000 km of roads from two-lanes to four-lanes for enhancing the economic efficiency of the highways.
"We are looking at economically efficient corridors and have identified around 15,000 km of roads, which we will convert from two-lanes to four-lanes, to increase their economic efficiencies by connecting points that have been left out historically," NHAI Chairman Raghav Chandra said at a road conference organised by Assocham.
Besides, he said NHAI will work with states and ministries to identify the problems at various check posts where multiple agencies connect tolls, state excise tolls and forest tolls so that they can be rationalised.
Maintenance got low priority due to poor capital budgeting, Chandra said in the past.
The developers being incentivised not just build a road but also maintain it for the life cycle of the concession of the contract, he added.
"We should have 4-lanes access controlled highways which will ensure the quality of the safety feature," the NHAI Chairman said.
Mumbai to Kolkata corridor can be made more efficient by creating a new connection of about 665 km as the road transcends from 4 lane to 2 lane in several places. This needs to be rationalised, which will aid the traffic to move more efficiently and faster, he added.
NHAI is also identifying choke points in cities, places which require bypasses, flyovers, interchanges, he said.
Chandra said NHAI has identified 184 flyovers to be made in the next 4-5 years, about 294 under passes, 5,000 km of left over service roads, 2 lakh signages and 550 junction points, adding that industry should assist the government in these areas.
"We will be planting 1,000 trees per km and are looking to plant 10 crore trees over the next 7-10 years. Lot of public sector organisations like Power Finance Corporation and Coal India are coming forward as part of their CSR to tie up with us," he added.
National Highways Authority of India (NHAI) will convert about 15,000 km of roads from two-lanes to four-lanes for enhancing the economic efficiency of the highways.
"We are looking at economically efficient corridors and have identified around 15,000 km of roads, which we will convert from two-lanes to four-lanes, to increase their economic efficiencies by connecting points that have been left out historically," NHAI Chairman Raghav Chandra said at a road conference organised by Assocham.
Besides, he said NHAI will work with states and ministries to identify the problems at various check posts where multiple agencies connect tolls, state excise tolls and forest tolls so that they can be rationalised.
Maintenance got low priority due to poor capital budgeting, Chandra said in the past.
The developers being incentivised not just build a road but also maintain it for the life cycle of the concession of the contract, he added.
"We should have 4-lanes access controlled highways which will ensure the quality of the safety feature," the NHAI Chairman said.
Mumbai to Kolkata corridor can be made more efficient by creating a new connection of about 665 km as the road transcends from 4 lane to 2 lane in several places. This needs to be rationalised, which will aid the traffic to move more efficiently and faster, he added.
NHAI is also identifying choke points in cities, places which require bypasses, flyovers, interchanges, he said.
Chandra said NHAI has identified 184 flyovers to be made in the next 4-5 years, about 294 under passes, 5,000 km of left over service roads, 2 lakh signages and 550 junction points, adding that industry should assist the government in these areas.
"We will be planting 1,000 trees per km and are looking to plant 10 crore trees over the next 7-10 years. Lot of public sector organisations like Power Finance Corporation and Coal India are coming forward as part of their CSR to tie up with us," he added.
General Awareness
Mumbai – the highest Expensive City in India but the second Least Expensive in World, says Trip Index
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According to the sixth edition of TripAdvisor’s TripIndex Cities,Mumbai has been ranked the most expensive city in India but the second least expensive in the world to visit, after Hanoi, Vietnam.
About our Mumbai :
Mumbai @ Bombay is the capital city of the Indian state of Maharashtra. It is the most populous city in India and the ninth most populous agglomeration in the world, with an estimated city population of 18.4 million.
- Along with the neighboring regions of the Mumbai Metropolitan Region, it is one of the most populous urban regions in the world and the second most populous metropolitan area in India, with a population of 20.7 million as of 2011.
- Mumbai lies on the west coast of India and has a deep natural harbor. In 2009, Mumbai was named an alpha world city. It is also the wealthiest city in India, and has the highest GDP of any city in South, West, or Central Asia. It is noted that Mumbai has the highest number of billionaires and millionaires among all cities in India.
- The seven islands that came to constitute Mumbai were home to communities of fishing colonies. For centuries, the islands were under the control of successive indigenous empires before being ceded to the Portuguese.
- During the mid-18th century, Bombay was reshaped by the Hornby Vellard project, which undertook reclamation of the area between the seven islands from the sea. Along with construction of major roads and railways, the reclamation project, completed in 1845, transformed Bombay into a major seaport on the Arabian Sea.
- Bombay in the 19th century was characterized by economic and educational development. During the early 20th century it became a strong base for the Indian independence movement. Upon India’s independence in 1947 the city was incorporated into Bombay State. In 1960, following the Samyukta Maharashtra movement, a new state of Maharashtra was created with Bombay as the capital.
- Mumbai is the financial, commercial and entertainment capital of India. It is also one of the world’s top ten centres of commerce in terms of global financial flow, generating 6.16% of India’s GDP and accounting for 25% of industrial output, 70% of maritime trade in India and 70% of capital transactions to India’s economy.
- The city houses important financial institutions such as the Reserve Bank of India, the Bombay Stock Exchange, the National Stock Exchange of India, the SEBI and the corporate headquarters of numerous Indian companies and multinational corporations.
- It is also home to some of India’s premier scientific and nuclear institutes like BARC, NPCL, IREL, TIFR, AERB, AECI, and the Department of Atomic Energy. The city also houses India’s Hindi (Bollywood) and Marathi film and television
The ranking Index:-
TripIndex Cities compares the cost of a three-night break during the summer travel period of June to September in 27 key cities around the world.
- The report revealed that New York (US) is the most expensive city in the world for a three-day break for Indians will cost a whooping INR 1,24,201.
Ranking list of least expensive cities:-
- Hanoi,
- Mumbai,
- Cape Town
- Kuala Lumpur.
- Bangkok
- Moscow
It is noted that the survey also included New Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad, Pune, Jaipur taking into account in-destination costs for two people.
According to the sixth edition of TripAdvisor’s TripIndex Cities,Mumbai has been ranked the most expensive city in India but the second least expensive in the world to visit, after Hanoi, Vietnam.About our Mumbai :Mumbai @ Bombay is the capital city of the Indian state of Maharashtra. It is the most populous city in India and the ninth most populous agglomeration in the world, with an estimated city population of 18.4 million.- Along with the neighboring regions of the Mumbai Metropolitan Region, it is one of the most populous urban regions in the world and the second most populous metropolitan area in India, with a population of 20.7 million as of 2011.
- Mumbai lies on the west coast of India and has a deep natural harbor. In 2009, Mumbai was named an alpha world city. It is also the wealthiest city in India, and has the highest GDP of any city in South, West, or Central Asia. It is noted that Mumbai has the highest number of billionaires and millionaires among all cities in India.
- The seven islands that came to constitute Mumbai were home to communities of fishing colonies. For centuries, the islands were under the control of successive indigenous empires before being ceded to the Portuguese.
- During the mid-18th century, Bombay was reshaped by the Hornby Vellard project, which undertook reclamation of the area between the seven islands from the sea. Along with construction of major roads and railways, the reclamation project, completed in 1845, transformed Bombay into a major seaport on the Arabian Sea.
- Bombay in the 19th century was characterized by economic and educational development. During the early 20th century it became a strong base for the Indian independence movement. Upon India’s independence in 1947 the city was incorporated into Bombay State. In 1960, following the Samyukta Maharashtra movement, a new state of Maharashtra was created with Bombay as the capital.
- Mumbai is the financial, commercial and entertainment capital of India. It is also one of the world’s top ten centres of commerce in terms of global financial flow, generating 6.16% of India’s GDP and accounting for 25% of industrial output, 70% of maritime trade in India and 70% of capital transactions to India’s economy.
- The city houses important financial institutions such as the Reserve Bank of India, the Bombay Stock Exchange, the National Stock Exchange of India, the SEBI and the corporate headquarters of numerous Indian companies and multinational corporations.
- It is also home to some of India’s premier scientific and nuclear institutes like BARC, NPCL, IREL, TIFR, AERB, AECI, and the Department of Atomic Energy. The city also houses India’s Hindi (Bollywood) and Marathi film and television
The ranking Index:-TripIndex Cities compares the cost of a three-night break during the summer travel period of June to September in 27 key cities around the world.- The report revealed that New York (US) is the most expensive city in the world for a three-day break for Indians will cost a whooping INR 1,24,201.
Ranking list of least expensive cities:-- Hanoi,
- Mumbai,
- Cape Town
- Kuala Lumpur.
- Bangkok
- Moscow
It is noted that the survey also included New Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad, Pune, Jaipur taking into account in-destination costs for two people.
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