General Affairs
Sushma Swaraj Meets Nepal Foreign Minister
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NEW DELHI: Ahead of Nepal Prime Minister Pushpa Kamal Dahal's visit to India later this week, External Affairs Minister Sushma Swaraj met the Himalayan nation's Foreign Minister Prakash Sharan Mahat in New Delhi on Monday.
"Preparing the ground for an important visit. EAM @SushmaSwaraj receives FM Prakash Sharan Mahat of Nepal," External Affairs Ministry spokesperson Vikas Swarup tweeted.
Prime Minister Dahal, popularly called "Prachanda", will arrive on September 15 on a three-day visit to India.
He became prime minister in early August after the ouster of K.P. Sharma Oli from the post.
"Preparing the ground for an important visit. EAM @SushmaSwaraj receives FM Prakash Sharan Mahat of Nepal," External Affairs Ministry spokesperson Vikas Swarup tweeted.
Prime Minister Dahal, popularly called "Prachanda", will arrive on September 15 on a three-day visit to India.
He became prime minister in early August after the ouster of K.P. Sharma Oli from the post.
AAP Leader Somnath Bharti Dares 'Modi Police' To Arrest Him
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NEW DELHI: Aam Aadmi Party (AAP) leader and Delhi legislator Somnath Bharti on Monday dared Prime Minister Narendra Modi's 'police' to come and arrest him if there was truth to him or his supporters allegedly misbehaving with security guards at the All India Institute of Medical Sciences (AIIMS) last week.
"The whole event is video recorded. The SHO of that area was present at that moment. What does the Modi police want to project by taking such an action after two days? Misusing the police like this, Modi ji and Amit Shah ji, you have lost the mandate. Is it not the result of the defeat that you have faced in Gujarat," asked Mr Bharti.
Mr Bharti said if the residents of the capital's Gautam Nagar area have to go to AIIMS, they have to travel 3.5 kilometres.
"There was a gutter at the rear of AIIMS. During the Commonwealth Games, a parallel road was to be constructed to connect Aurobindo Marg. The AIIMS intentionally did not allow it. A huge portion of that area is now being used as a parking lot. If the residents of Gautam Nagar are allowed to use it, they can easily reach AIIMS," he added.
Mr Bharti said that the AAP has been raising this issue for the past two years.
"We called meetings many a time. The SDMC, traffic police, BWD officials came. Observations were taken from the CPWD. Everyone came other than the AIIMS. It has happened five times that we have sent them letters stating that if you do not come, we will consider it as your consent. In connection to that, the PWD has taken action," he added.
He said on September 9, the PWD reached there and broke the wall in their presence.
"Me along with some people were present there. The PWD, we don't have anything to do with it. Why isn't there an FIR against senior BJP leader Aarti Mehra whose complaint is pending in a Hauz Khas police station? Why isn't there action against Congress leader Jitendra Kumar Kochar whose complaint is pending in Malviya Nagar police station? The whole nation saw Modi ji and Amit Shah ji followed and spied on a girl...why isn't there an FIR filed on that?" he added.
Mr Bharti said that the honest politics of the AAP is making the Bharatiya Janata Party (BJP) restless and the latter is doing something or the other out of this restlessness.
"By doing all this, Modi ji is digging his own grave and he will soon fall into it. Are there two CrPCs, two Constitutions and two IPCs in this nation? This is not my business...I am not a property dealer. Almost all the leaders of the BJP are property dealers. Almost every one of them has been involved in some act of corruption," he added.
Mr Bharti said the police complaint and filing of a case are now part of his attire.
"Now it doesn't matter even if they arrest me, beat me up or shoot me. There are some bad people in every party. If there is even a bit of truth in the incident, then come and arrest me. I have uploaded all the videos on YouTube. The FIR was lodged two days after the incident as the AAP got tremendous success in the Kisan rally in Punjab," he added.
A case has been registered against Mr Bharti and his supporters for allegedly misbehaving with the security guards of AIIMS.
It is reported that the incident took place on September 9 when Mr Bharti and his men allegedly injured six security guards of AIIMS. An FIR has been filed at the Hauj Khas Police Station.
"The whole event is video recorded. The SHO of that area was present at that moment. What does the Modi police want to project by taking such an action after two days? Misusing the police like this, Modi ji and Amit Shah ji, you have lost the mandate. Is it not the result of the defeat that you have faced in Gujarat," asked Mr Bharti.
Mr Bharti said if the residents of the capital's Gautam Nagar area have to go to AIIMS, they have to travel 3.5 kilometres.
"There was a gutter at the rear of AIIMS. During the Commonwealth Games, a parallel road was to be constructed to connect Aurobindo Marg. The AIIMS intentionally did not allow it. A huge portion of that area is now being used as a parking lot. If the residents of Gautam Nagar are allowed to use it, they can easily reach AIIMS," he added.
Mr Bharti said that the AAP has been raising this issue for the past two years.
"We called meetings many a time. The SDMC, traffic police, BWD officials came. Observations were taken from the CPWD. Everyone came other than the AIIMS. It has happened five times that we have sent them letters stating that if you do not come, we will consider it as your consent. In connection to that, the PWD has taken action," he added.
He said on September 9, the PWD reached there and broke the wall in their presence.
"Me along with some people were present there. The PWD, we don't have anything to do with it. Why isn't there an FIR against senior BJP leader Aarti Mehra whose complaint is pending in a Hauz Khas police station? Why isn't there action against Congress leader Jitendra Kumar Kochar whose complaint is pending in Malviya Nagar police station? The whole nation saw Modi ji and Amit Shah ji followed and spied on a girl...why isn't there an FIR filed on that?" he added.
Mr Bharti said that the honest politics of the AAP is making the Bharatiya Janata Party (BJP) restless and the latter is doing something or the other out of this restlessness.
"By doing all this, Modi ji is digging his own grave and he will soon fall into it. Are there two CrPCs, two Constitutions and two IPCs in this nation? This is not my business...I am not a property dealer. Almost all the leaders of the BJP are property dealers. Almost every one of them has been involved in some act of corruption," he added.
Mr Bharti said the police complaint and filing of a case are now part of his attire.
"Now it doesn't matter even if they arrest me, beat me up or shoot me. There are some bad people in every party. If there is even a bit of truth in the incident, then come and arrest me. I have uploaded all the videos on YouTube. The FIR was lodged two days after the incident as the AAP got tremendous success in the Kisan rally in Punjab," he added.
A case has been registered against Mr Bharti and his supporters for allegedly misbehaving with the security guards of AIIMS.
It is reported that the incident took place on September 9 when Mr Bharti and his men allegedly injured six security guards of AIIMS. An FIR has been filed at the Hauj Khas Police Station.
Top Court To Hear Petition For Public Role In Selection Of Judges
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NEW DELHI: A petition seeking the formation of a public body, neither controlled by the government nor the judiciary, for appointment of judges to the Supreme Court and the high courts will be heard by the top court today.
A bench led by Chief Justice TS Thakur will decide on the petition filed by National Lawyers Campaign for Judicial Transparency and Reforms which requested for urgent hearing after alleging nepotism and favoritism in the present collegium system of selection judges.
The petition moved by the lawyers' body had earlier criticized the judgement in the National Judicial Appointments Commission which it claimed "perpetuated privilege and a system of patronage."
"No mechanism which will provide for a just, fair, open and non-discriminatory selection and appointment of judges from a diverse pool of candidates has been brought into existence," the petition by the lawyers' body claims.
The lawyers' body also claimed that there was no effective mechanism to address the complaints of misconduct against judges.
In October last year, the Supreme Court had rejected the National Judicial Appointments Commission Act and the 99th Constitutional Amendment which sought to give politicians and members of the civil society a say in the appointment of judges to the highest courts.
"It is difficult to hold that the wisdom of appointment of judges can be shared with the political-executive. In India, the organic development of civil society has not as yet sufficiently evolved. The expectation from the judiciary, to safeguard the rights of citizens of this country can only be ensured by keeping it absolutely insulated and independent from other organs of governance," Justice JS Khehar of the Supreme Court had said explaining the judgment last year.
A bench led by Chief Justice TS Thakur will decide on the petition filed by National Lawyers Campaign for Judicial Transparency and Reforms which requested for urgent hearing after alleging nepotism and favoritism in the present collegium system of selection judges.
"No mechanism which will provide for a just, fair, open and non-discriminatory selection and appointment of judges from a diverse pool of candidates has been brought into existence," the petition by the lawyers' body claims.
The lawyers' body also claimed that there was no effective mechanism to address the complaints of misconduct against judges.
In October last year, the Supreme Court had rejected the National Judicial Appointments Commission Act and the 99th Constitutional Amendment which sought to give politicians and members of the civil society a say in the appointment of judges to the highest courts.
"It is difficult to hold that the wisdom of appointment of judges can be shared with the political-executive. In India, the organic development of civil society has not as yet sufficiently evolved. The expectation from the judiciary, to safeguard the rights of citizens of this country can only be ensured by keeping it absolutely insulated and independent from other organs of governance," Justice JS Khehar of the Supreme Court had said explaining the judgment last year.
Time For Rahul Gandhi To Undertake Another Foreign Trip For Introspection: BJP
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NEW DELHI: Taking strong exception to Rahul Gandhi's comment on Prime Minister Narendra Modi over his Rs. 15 lakh suit, the Bharatiya Janata Party or the BJP on Monday replied that perhaps it is time the Congress vice president undertake another foreign trip for introspection.
BJP spokesperson Nalin Kohli said that it is up to Mr Gandhi whether he wants to present himself as a serious political personality or as a joke.
"He is constantly raising these foreign trips...perhaps time has come that he should undertake another one of his famous foreign trips for introspection. Last time, I think he had gone to Thailand. He can go and introspect whether he wants to be seen as a serious political person, who has something to contribute in the line of whatever the Congress tradition is for a long time, or he wants to move in this path in which over a period of time people will take him even less seriously," he added.
In a veiled attack to Delhi Chief Minister Arvind Kejriwal, Mr Kohli said Mr Gandhi wants to walk on the paths traversed by the Aam Aadmi Party (AAP) convenor.
"So far, in this country we have only seen one particular leader... the Chief Minister of a Union Territory, not even a full state who can say anything without any foundation or facts...on the basis of no logical things, make any kind of allegation. Rahul Gandhi ji also wants to walk on that path...he is entitled to," he added.
Extending his 'suit-boot' analogy, Mr Gandhi yesterday took a jibe at Prime Minister Narendra Modi and his Rs. 15 lakh monogrammed suit.
Mr Gandhi said the Prime Minister is concerned about his suit getting dirty and that's why he doesn't come amidst the farmers, but visits America to meet President Barack Obama.
BJP spokesperson Nalin Kohli said that it is up to Mr Gandhi whether he wants to present himself as a serious political personality or as a joke.
"He is constantly raising these foreign trips...perhaps time has come that he should undertake another one of his famous foreign trips for introspection. Last time, I think he had gone to Thailand. He can go and introspect whether he wants to be seen as a serious political person, who has something to contribute in the line of whatever the Congress tradition is for a long time, or he wants to move in this path in which over a period of time people will take him even less seriously," he added.
In a veiled attack to Delhi Chief Minister Arvind Kejriwal, Mr Kohli said Mr Gandhi wants to walk on the paths traversed by the Aam Aadmi Party (AAP) convenor.
"So far, in this country we have only seen one particular leader... the Chief Minister of a Union Territory, not even a full state who can say anything without any foundation or facts...on the basis of no logical things, make any kind of allegation. Rahul Gandhi ji also wants to walk on that path...he is entitled to," he added.
Extending his 'suit-boot' analogy, Mr Gandhi yesterday took a jibe at Prime Minister Narendra Modi and his Rs. 15 lakh monogrammed suit.
Mr Gandhi said the Prime Minister is concerned about his suit getting dirty and that's why he doesn't come amidst the farmers, but visits America to meet President Barack Obama.
Blue Whale Rescued Along Maharashtra's Konkan Coast
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MUMBAI: A 47-feet long blue whale was rescued from the sea along a beach in Maharashtra's coastal Konkan and was successfully put back into the deep waters.
The whale had drifted into shallow waters near the Jaitapur power plant in Ratnagiri district.
"It appeared emaciated and must have drifted some days ago. But since this is an isolated spot, it was spotted on Saturday and we were informed by the locals," N Vasudevan, chief conservator, mangrove conservation cell, said.
As it was late evening that day, rescue operations using boats and fishing nets were carried out yesterday. The operation lasted six hours and the whale was led into the deep seas.
This is the second successful rescue of a blue whale in the same region, he said.
The whale had drifted into shallow waters near the Jaitapur power plant in Ratnagiri district.
"It appeared emaciated and must have drifted some days ago. But since this is an isolated spot, it was spotted on Saturday and we were informed by the locals," N Vasudevan, chief conservator, mangrove conservation cell, said.
As it was late evening that day, rescue operations using boats and fishing nets were carried out yesterday. The operation lasted six hours and the whale was led into the deep seas.
This is the second successful rescue of a blue whale in the same region, he said.
Business Affairs
Reliance Jio to raise Rs 15,000 crore via rights issue
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Telecom operator Reliance Jio Infocomm will raise Rs 15,000 crore through optionally convertible debt instrument.
"The Board of Directors at its meeting held on September 12, 2016 has decided to make rights issue of 300,00,00,000 - 9 per cent Non-Cumulative Optionally Convertible Preference Shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS, aggregating to Rs 15,000 crore," Reliance Jio informed stock exchanges today.
The board of Reliance Jio on July 14 approved to issue 1,500 crore equity shares of Rs 10 each aggregating to Rs 15,000 crore on rights issue basis.
However, it has now changed the instrument from equity to OCPS.
"Each OCPS shall be either redeemed at a value of Rs 50 per OCPS or converted into 5 equity shares of Rs 10 each at any time at the option of the company, but not later than 10 years from the date of allotment of OCPS," the filing said.
The company has commercially started its 4G services on September 5 and will offer free phone call and high speed data services for free till December 31.
However, it is facing resistance from incumbent telecom operators who have been reluctant to provide it network interconnection points resulting in failing of most of the calls made on Airtel, Vodafone and Idea Cellular network.
The company has launched its commercial service about a month before start of country's biggest ever spectrum auction which is set to start from October 1
Government will put airwaves worth Rs 5.63 lakh crore in the upcoming auction. Last date for submission of application to bid in the auction with earnest money deposit in the form of bank guarantee is September 14.
As per rating agency ICRA consolidated debt level of the industry stood at around Rs 3,80,000 crore in December 2015, against Rs 2,90,000 crore in March 2014 and going forward, given the estimated level of participation in the auctions, the industry debt would rise to around Rs 4,60,000 crore.
Telecom operator Reliance Jio Infocomm will raise Rs 15,000 crore through optionally convertible debt instrument.
"The Board of Directors at its meeting held on September 12, 2016 has decided to make rights issue of 300,00,00,000 - 9 per cent Non-Cumulative Optionally Convertible Preference Shares (OCPS) of Rs 10 each for cash, at a premium of Rs 40 per OCPS, aggregating to Rs 15,000 crore," Reliance Jio informed stock exchanges today.
The board of Reliance Jio on July 14 approved to issue 1,500 crore equity shares of Rs 10 each aggregating to Rs 15,000 crore on rights issue basis.
However, it has now changed the instrument from equity to OCPS.
"Each OCPS shall be either redeemed at a value of Rs 50 per OCPS or converted into 5 equity shares of Rs 10 each at any time at the option of the company, but not later than 10 years from the date of allotment of OCPS," the filing said.
The company has commercially started its 4G services on September 5 and will offer free phone call and high speed data services for free till December 31.
However, it is facing resistance from incumbent telecom operators who have been reluctant to provide it network interconnection points resulting in failing of most of the calls made on Airtel, Vodafone and Idea Cellular network.
The company has launched its commercial service about a month before start of country's biggest ever spectrum auction which is set to start from October 1
Government will put airwaves worth Rs 5.63 lakh crore in the upcoming auction. Last date for submission of application to bid in the auction with earnest money deposit in the form of bank guarantee is September 14.
As per rating agency ICRA consolidated debt level of the industry stood at around Rs 3,80,000 crore in December 2015, against Rs 2,90,000 crore in March 2014 and going forward, given the estimated level of participation in the auctions, the industry debt would rise to around Rs 4,60,000 crore.
August CPI inflation eases to 5.05%, July IIP shrinks
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Annual consumer price inflation eased to 5.05 per cent in August, helped by smaller rises in food prices, government data showed on Monday.
Economists surveyed by Reuters had expected annual retail inflation to come in at 5.5 per cent last month, compared with 6.07 percent in July.
Food inflation was 5.91 per cent last month, slower than 8.35 per cent recorded in July.
Meanwhile, industrial output contracted 2.4 per cent in July from a year earlier, mainly dragged down by lower production of capital goods and consumer non-durables, government data showed on Monday.
Economists surveyed by Reuters had forecast a 1.7 percent increase in output compared with a provisional 2.1 percent year-on-year expansion in June.
Also, country's core consumer price inflation in August was little changed at around 4.7 percent year-on-year from around 4.6 percent the previous month, according to two analysts on Monday.
Core inflation is a key measure for the central bank to gauge price pressure related to demand in the economy.
Annual consumer price inflation eased to 5.05 per cent in August, helped by smaller rises in food prices, government data showed on Monday.
Economists surveyed by Reuters had expected annual retail inflation to come in at 5.5 per cent last month, compared with 6.07 percent in July.
Food inflation was 5.91 per cent last month, slower than 8.35 per cent recorded in July.
Meanwhile, industrial output contracted 2.4 per cent in July from a year earlier, mainly dragged down by lower production of capital goods and consumer non-durables, government data showed on Monday.
Economists surveyed by Reuters had forecast a 1.7 percent increase in output compared with a provisional 2.1 percent year-on-year expansion in June.
Also, country's core consumer price inflation in August was little changed at around 4.7 percent year-on-year from around 4.6 percent the previous month, according to two analysts on Monday.
Core inflation is a key measure for the central bank to gauge price pressure related to demand in the economy.
GST enters last mile as Cabinet approves proposal to form GST Council
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The government on Monday approved the process, formation and functioning of Goods and Services Tax (GST) council, which will eventually decide the uniform tax rate applicable in the country.
The move comes after President Pranab Mukerjee last week gave his assent to the GST Bill making it an Act.
GST Council, which will have have the Union finance minister and state finance ministers as members, would decide on the GST rate, exemptions and thresholds and also finalise the law.
PricewaterhouseCoopers (PwC) said it does not expect GST Council to arrive at tax rate in next two months. It believes the govt would not be able to meet the April 2017 deadline to roll out the GST.
However, being a transaction tax, GST can be implemented middle of the year.
Any resolution in the GST Council would be passed only after 75 per cent of the members present agree. The Centre has a one-third weightage in the vote while the state governments together will have two-thirds weightage.
The GST Council would be a powerful body given it would decide the GST rates and draft rules for Central, state and Integrated GST.
Arriving at a consensus on GST rate itself is going to be a tough task ahead given that states have already rejected the standard rate of 18 per cent suggested by the GST Committee headed by Economic Advisor Arvind Subramanian.
Drafting of GST rules by the Council would also take time given the number of flaws experts have pointed out in the Model GST law. The other important decision that the GST Council would have to take is deciding the list of exempted goods.
In the present indirect tax regime, there are around 300 items that are exempted from central excise duty and around 90 items exempted from value-added tax (VAT). Now, the government will have to merge all the exempted items and decide on a final list of exempted goods.
The government on Monday approved the process, formation and functioning of Goods and Services Tax (GST) council, which will eventually decide the uniform tax rate applicable in the country.
The move comes after President Pranab Mukerjee last week gave his assent to the GST Bill making it an Act.
GST Council, which will have have the Union finance minister and state finance ministers as members, would decide on the GST rate, exemptions and thresholds and also finalise the law.
PricewaterhouseCoopers (PwC) said it does not expect GST Council to arrive at tax rate in next two months. It believes the govt would not be able to meet the April 2017 deadline to roll out the GST.
However, being a transaction tax, GST can be implemented middle of the year.
Any resolution in the GST Council would be passed only after 75 per cent of the members present agree. The Centre has a one-third weightage in the vote while the state governments together will have two-thirds weightage.
The GST Council would be a powerful body given it would decide the GST rates and draft rules for Central, state and Integrated GST.
Arriving at a consensus on GST rate itself is going to be a tough task ahead given that states have already rejected the standard rate of 18 per cent suggested by the GST Committee headed by Economic Advisor Arvind Subramanian.
Drafting of GST rules by the Council would also take time given the number of flaws experts have pointed out in the Model GST law. The other important decision that the GST Council would have to take is deciding the list of exempted goods.
In the present indirect tax regime, there are around 300 items that are exempted from central excise duty and around 90 items exempted from value-added tax (VAT). Now, the government will have to merge all the exempted items and decide on a final list of exempted goods.
Six reasons why Sensex tanked over 500 points intraday
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Dalal Street woke up to Monday blues as the S&P BSE Sensex tanked over 500 points intraday, while broader Nify50 slipped below its crucial 8,750 level tracking weaker trend seen across the global markets.
The benchmark indices may have recovered slightly as the session progressed, but broader sentiment remained negative with all the sectoral indices barring IT index trading in red.
"Market behaviour in the coming months is hard to predict. If there are no negative news, the market is likely to consolidate and then move ahead with normal corrections. On the other hand, if an external factor which can trigger capital outflows happen, there will be a sharp correction. Investors have to be vigilant," said V K Vijayakumar, Chief Investment Strategist, Geojit BNP Paribas.
We have compiled six factors that may have driven the fall on Dalal Street:
1) Odds on Fed hike strengthen:
On Monday, the odds on US Federal Reserve raising interest rates in the US as early as September rose to 57 per cent from 53 per cent, following hawkish comments from US Federal Reserve officials late last week. Boston Federal Reserve President Eric Rosengren on Friday said the US economy could overheat should policymakers wait too long to tighten the monetary policy, but he also added that long-term headwinds to economic growth mean the central bank should consider raising rates only very slowly.
2) Sea of red across global markets
Taking cues from over 100 points fall on Dow futures, Asian markets along with domestic market edged lower this morning. China's Shanghai Composite lost over 2 per cent, Hong Kong's Hang Seng index dipped 3 per cent, while Japan's Nikkei was down 1.84 per cent. On Friday, US markets moved sharply lower. The Dow and the S&P 500 tumbled to two-month closing lows, while the Nasdaq hit its lowest closing level in well over a month.
3) Below average monsoon
The monsoon weakened in most parts of the country, taking the overall seasonal rainfall to 5 per cent below normal against the forecasts of 5 per cent above normal rainfall by most of the weather agencies. The data turned out to be sentimentally negative as partial patches have seen very poor rainfall.
4) Profit-booking in auto and banking stocks
The fall in the benchmark indices was led by losses in banking and auto stocks as investors booked profits after a smart rally, witnessed early last week, in these counters. Axis Bank, SBI and ICICI Bank fell up to 4 per cent, while Tata Motors, Hero MotoCorp and Mahindra & Mahindra fell up to 3 per cent.
5) Technical charts
Nifty index had kept the upward momentum with just kissing distance away from the old high prices. Jimeet Modi, CEO, SAMCO Securities said generally market takes a breather at or around the old highs in the form double top. He added that the risk to rewards is not in favour of the bulls currently unless Nifty validly pierces its old highs of 9119.
"8,750 on the Nifty now stands as a strong support in the upcoming week. Only a sustainable move below this level could trigger further weakness in the market. On the flipside, 8,939-8,970 are seen as immediate hurdles for the index," said Angel Broking in a research note.
6) IIP and inflation data awaited
Investors turned cautious ahead of macroeconomic data - IIP for July and inflation data for August - scheduled to be released later in the day. A Reuters poll said consumer inflation is expected to have eased to a four-month low in August, helped by smaller rises in food prices, while annual growth in industrial output is expected to have decelerated to 1.7 per cent in July from June's eight-month high of 2.1 per cent.
Dalal Street woke up to Monday blues as the S&P BSE Sensex tanked over 500 points intraday, while broader Nify50 slipped below its crucial 8,750 level tracking weaker trend seen across the global markets.
The benchmark indices may have recovered slightly as the session progressed, but broader sentiment remained negative with all the sectoral indices barring IT index trading in red.
"Market behaviour in the coming months is hard to predict. If there are no negative news, the market is likely to consolidate and then move ahead with normal corrections. On the other hand, if an external factor which can trigger capital outflows happen, there will be a sharp correction. Investors have to be vigilant," said V K Vijayakumar, Chief Investment Strategist, Geojit BNP Paribas.
The benchmark indices may have recovered slightly as the session progressed, but broader sentiment remained negative with all the sectoral indices barring IT index trading in red.
"Market behaviour in the coming months is hard to predict. If there are no negative news, the market is likely to consolidate and then move ahead with normal corrections. On the other hand, if an external factor which can trigger capital outflows happen, there will be a sharp correction. Investors have to be vigilant," said V K Vijayakumar, Chief Investment Strategist, Geojit BNP Paribas.
We have compiled six factors that may have driven the fall on Dalal Street:
1) Odds on Fed hike strengthen:
On Monday, the odds on US Federal Reserve raising interest rates in the US as early as September rose to 57 per cent from 53 per cent, following hawkish comments from US Federal Reserve officials late last week. Boston Federal Reserve President Eric Rosengren on Friday said the US economy could overheat should policymakers wait too long to tighten the monetary policy, but he also added that long-term headwinds to economic growth mean the central bank should consider raising rates only very slowly.
2) Sea of red across global markets
Taking cues from over 100 points fall on Dow futures, Asian markets along with domestic market edged lower this morning. China's Shanghai Composite lost over 2 per cent, Hong Kong's Hang Seng index dipped 3 per cent, while Japan's Nikkei was down 1.84 per cent. On Friday, US markets moved sharply lower. The Dow and the S&P 500 tumbled to two-month closing lows, while the Nasdaq hit its lowest closing level in well over a month.
3) Below average monsoon
The monsoon weakened in most parts of the country, taking the overall seasonal rainfall to 5 per cent below normal against the forecasts of 5 per cent above normal rainfall by most of the weather agencies. The data turned out to be sentimentally negative as partial patches have seen very poor rainfall.
4) Profit-booking in auto and banking stocks
The fall in the benchmark indices was led by losses in banking and auto stocks as investors booked profits after a smart rally, witnessed early last week, in these counters. Axis Bank, SBI and ICICI Bank fell up to 4 per cent, while Tata Motors, Hero MotoCorp and Mahindra & Mahindra fell up to 3 per cent.
5) Technical charts
Nifty index had kept the upward momentum with just kissing distance away from the old high prices. Jimeet Modi, CEO, SAMCO Securities said generally market takes a breather at or around the old highs in the form double top. He added that the risk to rewards is not in favour of the bulls currently unless Nifty validly pierces its old highs of 9119.
"8,750 on the Nifty now stands as a strong support in the upcoming week. Only a sustainable move below this level could trigger further weakness in the market. On the flipside, 8,939-8,970 are seen as immediate hurdles for the index," said Angel Broking in a research note.
6) IIP and inflation data awaited
Investors turned cautious ahead of macroeconomic data - IIP for July and inflation data for August - scheduled to be released later in the day. A Reuters poll said consumer inflation is expected to have eased to a four-month low in August, helped by smaller rises in food prices, while annual growth in industrial output is expected to have decelerated to 1.7 per cent in July from June's eight-month high of 2.1 per cent.
Tata Steel Q1 loss at Rs 3,183 cr on hit from UK business
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Tata Steel on Monday posted a consolidated net loss of Rs 3,183 crore for the quarter ended June 30, largely on account of its erstwhile entity Long Steel UK.
The steel major's operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) at 21 per cent was higher than the year-ago period due to improved operating performance in India, Europe and South East Asia.
It posted net loss after taxes, minority interest and share of profit of associates of Rs 3,183 crore for the April- June quarter of the current financial year, as against net loss of Rs 316.91 crore in the year-ago period.
Tata Steel's Europe division was sold at a loss of Rs 3,296.48 crore to Greybull Capital LLP. This loss was recognised in the first quarter.
The Tata Steel Group posted net profit of Rs 172 crore in the quarter under review from continuing business for the first time after several quarters, the company said.
Its total income fell by 6 per cent to Rs 26,406.10 crore during the quarter under review, as against Rs 28,025.43 crore in the year-ago period.
"Seasonal headwinds and a slowdown in a large steel consuming sector like real estate affected steel demand in the quarter. While the regulatory changes have helped stem the flood of imports, domestic supply has increased and added to the competitive pressure.
"The company's deliveries were stable this quarter and we successfully maintained our market share in our chosen high- end segments," Tata Steel India and South East Asia Managing Director TV Narendran told reporters.
"Our auto business grew by 19 per cent over the last year and branded products now contribute around 34 per cent of overall sales. Stronger realisations and focus on value added products helped the business expand margins by 310 basis points and deliver an EBITDA of Rs 2,236 crore," he said.
Despite continued imports from China, the South East Asia operations have shown a significant improvement in the business due to focus on downstream products and solutions, exports and effective management of spreads, Narendran said.
Operations in India, Europe and South East Asia made positive contributions. EBITDA of Rs 3,270 crore, 65 per cent higher than the fourth quarter of 2015-16. It was 21 per cent higher than the first quarter of 2015-16 due to improved operating performance regions.
The first quarter EBITDA margin of 12.4 per cent expanded by 520 bps as compared to 7.2 per cent in fourth quarter of last fiscal. It was up 280 bps compared to 9.6 per cent in the first quarter of last fiscal.
The company generated cash flow from operations of Rs 1,097 crore in the first quarter of the current fiscal. Gross debt of Rs 85,475 crore as on June 30, 2016, was higher than Rs 81,975 crore on March 31, 2016 primarily due to increase in procurement.
Tata Steel on Monday posted a consolidated net loss of Rs 3,183 crore for the quarter ended June 30, largely on account of its erstwhile entity Long Steel UK.
The steel major's operating profit or EBITDA (earnings before interest, tax, depreciation and amortisation) at 21 per cent was higher than the year-ago period due to improved operating performance in India, Europe and South East Asia.
It posted net loss after taxes, minority interest and share of profit of associates of Rs 3,183 crore for the April- June quarter of the current financial year, as against net loss of Rs 316.91 crore in the year-ago period.
Tata Steel's Europe division was sold at a loss of Rs 3,296.48 crore to Greybull Capital LLP. This loss was recognised in the first quarter.
The Tata Steel Group posted net profit of Rs 172 crore in the quarter under review from continuing business for the first time after several quarters, the company said.
Its total income fell by 6 per cent to Rs 26,406.10 crore during the quarter under review, as against Rs 28,025.43 crore in the year-ago period.
"Seasonal headwinds and a slowdown in a large steel consuming sector like real estate affected steel demand in the quarter. While the regulatory changes have helped stem the flood of imports, domestic supply has increased and added to the competitive pressure.
"The company's deliveries were stable this quarter and we successfully maintained our market share in our chosen high- end segments," Tata Steel India and South East Asia Managing Director TV Narendran told reporters.
"Our auto business grew by 19 per cent over the last year and branded products now contribute around 34 per cent of overall sales. Stronger realisations and focus on value added products helped the business expand margins by 310 basis points and deliver an EBITDA of Rs 2,236 crore," he said.
Despite continued imports from China, the South East Asia operations have shown a significant improvement in the business due to focus on downstream products and solutions, exports and effective management of spreads, Narendran said.
Operations in India, Europe and South East Asia made positive contributions. EBITDA of Rs 3,270 crore, 65 per cent higher than the fourth quarter of 2015-16. It was 21 per cent higher than the first quarter of 2015-16 due to improved operating performance regions.
The first quarter EBITDA margin of 12.4 per cent expanded by 520 bps as compared to 7.2 per cent in fourth quarter of last fiscal. It was up 280 bps compared to 9.6 per cent in the first quarter of last fiscal.
The company generated cash flow from operations of Rs 1,097 crore in the first quarter of the current fiscal. Gross debt of Rs 85,475 crore as on June 30, 2016, was higher than Rs 81,975 crore on March 31, 2016 primarily due to increase in procurement.
General Awareness
Sikkim has been awarded as the cleanest state by NSSO Sanitation Survey
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Sikkim has been awarded the cleanest state in the list depend on the condition of sanitation in rural areas of 26 states in which Prime Minister Narendra Modi’s home state Gujarat is ranked 14th and Jharkhand comes last.
NSSO Sanitation Survey:
The survey carried out last year by National Sample Survey Office (NSSO) under the words of Union Rural Development Minister Narendra Singh Tomar has listed the top 10 as follows,
1.Sikkim
2.Kerala,
3.Mizoram,
4.Himachal Pradesh,
5.Nagaland,
6.Haryana,
7.Punjab,
8.Uttarakhand,
9.Manipur and
10.Meghalaya
The NSSO conducted the survey in May-June 2015 covering 73,176 households in 3,788 villages across the country. The ranking was given on the basis of the percentage of households having toilets, either household or community toilets.
- Sikkim scored 98.2 per cent on a scale of 100 while Jharkhand, scored 17.7 According to the report, Sikkim has 99.9 per cent sanitation coverage, followed by Himachal Pradesh (97.11 per cent) and Kerala (96.35 per cent). Bihar is at the bottom with 25.16 per cent coverage.
- Odisha (32.79 per cent), Jammu & Kashmir (33.35 per cent), Jharkhand (40.52 per cent), Telangana (42.13 per cent), Uttar Pradesh (44.15 per cent), Andhra Pradesh (47.14 per cent) and Madhya Pradesh (47.48 per cent) are among states that fared poorly.
- The survey was done in two parts. In the first, 26 states were ranked on the basis of 2015 NSSO data; in the second part, 75 districts covering 70,000 households were ranked for cleanliness.
- Sindhudurg in Maharashtra emerged as the cleanest district in the country.
- The survey covered 53 districts located in the plains and 22 in hill states and the North-East.
About Sikkim :
Sikkim is a landlocked state of India, the last to give up its monarchy and fully integrate into India, in 1975. Located in the Himalayan mountains, the state is bordered by Nepal to the west, China’s Tibet Autonomous Region to the north and east, and Bhutan to the east. The Indian state of West Bengal lies to the south.
- With 607,688 inhabitants as ofthe 2011 census, Sikkim is the least populous state in India and the second-smallest state after Goa in total area, covering approximately 7,096 km2 (2,740 sq mi).
- Sikkim is nonetheless geographically diverse due to its location in the Himalayas; the climate ranges fromsubtropical to high alpine, and Kangchenjunga, the world’s third-highest peak, is located on Sikkim’s border with Nepal.
- Sikkim is a popular tourist destination, owing to its culture, scenery andbiodiversity. It also has the only open land border between India and China. Sikkim’s capital and largest city is Gangtok. Almost 25% of the state is covered by the Khangchendzonga National Park.
- According to legend, theBuddhist guru Padmasambhava visited Sikkim in the 8th century CE, introduced Buddhism and foretold the era of the Sikkimese monarchy. Sikkim’s Namgyal dynasty was established in 1642.
- Over the next 150 years, the kingdom witnessed frequent raids and territorial losses to Nepalese invaders.In the 19th century, it allied itself with British India, eventually becoming a British protectorate. In 1975, a referendum abolished the Sikkimese monarchy, and the territory instead became part of India.
- Sikkim has 11official languages: Nepali (which is its lingua franca), Sikkimese, Hindi, Lepcha, Tamang, Limbu, Newari, Rai,Gurung, Magar, Sunwar and English.
- English is taught in schools and used in government documents. The predominant religions areHinduism and Vajrayana Buddhism.
- Sikkim’s economy is largely dependent on agriculture and tourism, and as of 2014the state had the third-smallest GDP among Indian states, although it is also among the fastest-growing state,
- Sikkim scored 98.2 per cent on a scale of 100 while Jharkhand, scored 17.7 According to the report, Sikkim has 99.9 per cent sanitation coverage, followed by Himachal Pradesh (97.11 per cent) and Kerala (96.35 per cent). Bihar is at the bottom with 25.16 per cent coverage.
- Odisha (32.79 per cent), Jammu & Kashmir (33.35 per cent), Jharkhand (40.52 per cent), Telangana (42.13 per cent), Uttar Pradesh (44.15 per cent), Andhra Pradesh (47.14 per cent) and Madhya Pradesh (47.48 per cent) are among states that fared poorly.
- The survey was done in two parts. In the first, 26 states were ranked on the basis of 2015 NSSO data; in the second part, 75 districts covering 70,000 households were ranked for cleanliness.
- Sindhudurg in Maharashtra emerged as the cleanest district in the country.
- The survey covered 53 districts located in the plains and 22 in hill states and the North-East.
- With 607,688 inhabitants as ofthe 2011 census, Sikkim is the least populous state in India and the second-smallest state after Goa in total area, covering approximately 7,096 km2 (2,740 sq mi).
- Sikkim is nonetheless geographically diverse due to its location in the Himalayas; the climate ranges fromsubtropical to high alpine, and Kangchenjunga, the world’s third-highest peak, is located on Sikkim’s border with Nepal.
- Sikkim is a popular tourist destination, owing to its culture, scenery andbiodiversity. It also has the only open land border between India and China. Sikkim’s capital and largest city is Gangtok. Almost 25% of the state is covered by the Khangchendzonga National Park.
- According to legend, theBuddhist guru Padmasambhava visited Sikkim in the 8th century CE, introduced Buddhism and foretold the era of the Sikkimese monarchy. Sikkim’s Namgyal dynasty was established in 1642.
- Over the next 150 years, the kingdom witnessed frequent raids and territorial losses to Nepalese invaders.In the 19th century, it allied itself with British India, eventually becoming a British protectorate. In 1975, a referendum abolished the Sikkimese monarchy, and the territory instead became part of India.
- Sikkim has 11official languages: Nepali (which is its lingua franca), Sikkimese, Hindi, Lepcha, Tamang, Limbu, Newari, Rai,Gurung, Magar, Sunwar and English.
- English is taught in schools and used in government documents. The predominant religions areHinduism and Vajrayana Buddhism.
- Sikkim’s economy is largely dependent on agriculture and tourism, and as of 2014the state had the third-smallest GDP among Indian states, although it is also among the fastest-growing state,
Sikkim has been awarded the cleanest state in the list depend on the condition of sanitation in rural areas of 26 states in which Prime Minister Narendra Modi’s home state Gujarat is ranked 14th and Jharkhand comes last.
NSSO Sanitation Survey:
The survey carried out last year by National Sample Survey Office (NSSO) under the words of Union Rural Development Minister Narendra Singh Tomar has listed the top 10 as follows,
1.Sikkim
2.Kerala,
3.Mizoram,
4.Himachal Pradesh,
5.Nagaland,
6.Haryana,
7.Punjab,
8.Uttarakhand,
9.Manipur and
10.Meghalaya
2.Kerala,
3.Mizoram,
4.Himachal Pradesh,
5.Nagaland,
6.Haryana,
7.Punjab,
8.Uttarakhand,
9.Manipur and
10.Meghalaya
The NSSO conducted the survey in May-June 2015 covering 73,176 households in 3,788 villages across the country. The ranking was given on the basis of the percentage of households having toilets, either household or community toilets.
About Sikkim :
Sikkim is a landlocked state of India, the last to give up its monarchy and fully integrate into India, in 1975. Located in the Himalayan mountains, the state is bordered by Nepal to the west, China’s Tibet Autonomous Region to the north and east, and Bhutan to the east. The Indian state of West Bengal lies to the south.
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