current Affairs - 18 October 2016

General Affairs 

'Close Down Terror Factory, India Can Help,' Rajnath Singh Tells Pakistan

• CHANDIGARH:  Union Home Minister Rajnath Singh today said that Pakistan must "close down the factory of terrorism" and that India could help it act against terrorists if Pakistan sought its assistance.   
  
  "Pakistan's entire establishment is engaged in fueling terrorism in India and that's why the management of areas along the Indo-Pak border has become a challenging task...But those who rear snakes should know they would bite them," the minister said, a day after Prime Minister Narendra Modi called Pakistan the "mother-ship of terrorism."
  

  "If its intentions remain clear, India can help Pakistan carry out an anti-terror campaign, including Pakistan-Occupied Kashmir. If Pakistan wishes it can seek our help and India is ready to help it...But its intentions are not clear," Mr Singh said, emphasising that "India is against Pakistan-sponsored terrorism, but does not have any ill will against the people of Pakistan."
  
  Mr Singh, who was speaking at a conference of editors, described the surgical strikes conducted by the Indian Army across the Line of Control against terrorist launch pads as "pre-emptive action" and said India wants to eliminate terrorism from the entire region.
  

  The minister said Pakistan's "flexible attitude towards terrorism" was the biggest hindrance in the two countries' relationship.
  
  "This country shelters not just terrorists. It nurtures a mindset... that loudly proclaims that terrorism is justified for political gains," PM Modi said on Sunday at a meeting of BRICS - Brazil, Russia, India, China and South Africa - leaders in Goa, extending his government's diplomatic drive to isolate Islamabad after the attack on an army base in Uri in Kashmir last month by Pakistani terrorists, in which 19 soldiers were killed.
  
  Pakistan has accused PM Modi of "misleading" the BRICS nations. "Pakistan's sacrifices in the war against terrorism are well acknowledged and repeatedly appreciated by the leadership of most countries in the world," said Sartaz Aziz, Prime Minister Nawaz Sharif's adviser on Foreign Affairs, in a statement.
  
  Pakistan's all-weather friend China said today that India and Pakistan are both victims of terrorism and that it is against "the linking of terrorism to any specific country, ethnicity or religion."

Manohar Parrikar Links Surgical Strikes Decision To 'RSS Teaching'

• AHMEDABAD:  Defence Minister Manohar Parrikar on Monday appeared to give credit to "RSS teaching" for the decision to conduct surgical strikes across the Line of Control to target terrorist launch pads in Pakistan Occupied Kashmir.
  
  "I wonder, with the combination of a Prime Minister who comes from Mahatma Gandhi's home state, and I, Defence Minister, coming from Goa which never had any martial race, and surgical strikes. May be the RSS teaching was at the core, but this was quite a different kind of combination," Mr Parrikar said at a function, "Know your Army", organised in Ahmedabad.
  

  Praising the Indian Army as the world's best, Mr Parrikar slammed opposition parties who have demanded evidence that the strikes were conducted. "When Indian Army says something we should believe it. It (Army) is world's best, professional, brave and having a very high integrity," he said, adding, "There are people who will never get convinced even if definite proof is given."
  
  "Why is the Defence Minister of India always so over the top?" asked the Congress' Manish Tewari, adding, "Today he has credited the RSS for operations along LoC."
  
  
  

  Opposition leaders like the Congress' Rahul Gandhi have alleged that PM Modi and his ministers are exaggerating the government's role in the military action and that when the Congress was in power, three similar cross-border strikes had been carried out, which were not publicised to prevent an escalation of tension with Pakistan and to allow the Army the secrecy and space it needs for highly-sensitive operations.
  
  Mr Parrikar has earlier said that he hasn't in two years as defence minister learnt of any surgical strikes conducted by previous governments.
  
  Pakistan has denied the cross-border raids, accusing India of misrepresenting cross-border firing as extra-ordinary action. Opposition leaders including from the Congress and Delhi Chief Minister Arvind Kejriwal have asked the government to demolish Pakistan's claims by sharing evidence of the strikes. Top ministers say those calls for proof are tantamount to siding with Pakistan on a matter of crucial national security.
  
  BJP president Amit Shah has said the surgical strikes will feature in the party's electoral campaign for Uttar Pradesh.

Tourism Minister To Inspect Site Of Proposed Ramayana Museum In Ayodhya Today

• NEW DELHI:  Tourism Minister Mahesh Sharma will visit Ayodhya on Tuesday to inspect the proposed site for setting up a Ramayana museum, a move seen as an attempt to woo pro-Hindutva elements ahead of assembly election in Uttar Pradesh.
  
  Mr Sharma, however, played down the political agenda behind the visit, saying it is part of the tourism development plans of the Modi-government and should not be linked with elections in the politically crucial state, which goes to polls early next year.
  
  "My visit to Ayodhya has nothing to do with UP Assembly elections. I am visiting there as a Tourism Minister. It should not be linked to politics but is part of government's effort to improve tourism in Ayodhya and all over the country. The visit is part of developmental agenda," he said.
  

  Mr Sharma said the museum will be a part of the Ramayana Circuit for which the Centre has sanctioned Rs. 225 crore, with Rs. 151 crore exclusively for Ayodhya, which is the hub of the circuit.
  
  "Ram is in the heart of millions of people. As the Tourism Minister, I have to see how Ayodhya can be developed, how Ramayana circuit can be developed from tourism point of view," the minister said.
  
  He said the government has identified three circuits - Ramayana Circuit, Krishna Circuit and Buddhist Circuit - to boost religious tourism.
  
  The state government has identified a 25-acre plot for the museum which is some 15 km away from the disputed Ram Janmabhoomi-Babri Masjid complex, a source said.
  
  

  
  Mr Sharma will also hold a meeting with Ramayana Circuit Advisory Board during the visit. The meeting would discuss routes for connecting Ramayana-related sites in Nepal and Sri Lanka with the proposed museum.
  
  The Union Minister would also deliberate on plans for an International Ramayana Conclave, which would be held either in Ayodhya or Chitrakoot district. The conference is likely to be attended by delegates from about 12 countries, sources said.
  
  Mr Sharma is likely to hold meetings with religious leaders on building the museum which would portray the epic journey of Lord Rama.
  
  Tourism being a state subject, Mr Sharma also sought help from Uttar Pradesh government for development of the circuits to give boost to tourism which, he said, has great potential to earn foreign exchange, employment generation and women empowerment.
  
  Though the BJP has been insisting that Ram temple will not be an electoral plank in the UP elections to be held early next year, the proposed Ramayana museum and related activities are being seen as an attempt to keep pro-Hindutva elements in good humour.On Dusshera, Prime Minister Narendra Modi had, in a departure from tradition, participated in the festivities in Lucknow where he started and concluded his speech with chants of "Jai Shri Ram, Jai Jai Shri Ram". 

Raj Thackeray Betting On Mumbai Civic Polls To Remain Relevant

• MUMBAI:  Looking to improve its chances in the coming civic polls in Maharashtra - including elections for the prestigious Mumbai Municipal Corporation - the Raj Thackeray led Maharashtra Navnirman Sena is looking for issues that will resonate with people, according to political analysts.
  
  The MNS is buoyed by the success of its campaign to ban Pakistani artistes in recent days, and will likely raise popular issues such as the pothole-ridden roads to target urban voters. However the party has refused criticism that it's choosing issues based on political calculations.
  
  "We have raised the potholes several times in the past. Recently we filed complaints against engineers of the Municipal Corporation of Greater Mumbai. Our corporators Sandeep Deshpande and Manish Dhuri were arrested and sent to jail for this cause, and they did not apply for bail despite being eligible for it," said MNS vice-president Vageesh Saraswat.
  
  Recent delimitation of wards in Mumbai is expected to adversely affect the MNS in the coming polls. To counter it the party has made changes in work allotment to party leaders. Mr Thackeray is personally supervising selection of office bearers.
  

  "In Mumbai, we have put one leader each in charge of two assembly segments. Inefficient office bearers have been replaced," explained Mr Saraswat.
  
  The MNS has so far not ruled out joining in any alliance to bolster its chances.
  
  "We will contest elections on our own. If there is an offer for alliance, we are open to it," Mr Saraswat said.
  
  Currently the MNS has 27 corporators, however its recent poor outing in the assembly polls in 2014 have rung alarm bells in its cadre. The MNS came up behind the BJP, Shiv Sena, Congress and the NCP. For it to remain in the reckoning, it will have to put up a strong show in civic polls in Mumbai, Thane, Pune, Nashik and Nagpur next year.

Election Commission Announces Bypolls To 4 Lok Sabha, 8 Assembly Seats

• NEW DELHI:  The Election Commission today announced schedule of bypolls to four Lok Sabha and eight Assembly seats to be held on November 19.
  
  The notification will be issued on October 26 and bypolls will take place on November 19. Counting will be on November 22.
  
  The Commission said bypolls to Lakhimpur (Assam), Shahdol (Madhya Pradesh) and Coochbehar and Tamluk (West Bengal) Lok Sabha constituencies along with bypolls to a total of 8 Assembly seats in Assam, Arunachal Pradesh, Madhya Pradesh, West Bengal, Tamil Nadu, Tripura and Puducherry will be held on the same day.
  

  The Lakhimpur Lok Sabha seat fell vacant after Sarbananda Sonowal resigned as an MP in May and took over as Chief Minister following BJP's win in the Assembly polls.
  
  On the other hand, by-election to the Baithalangso constituency has became necessary after Mansing Rongpi, who had won from the constituency as a Congress candidate in the last Assembly elections in Assam, resigned from his seat in July after he left Congress and joined BJP.
  
  Bypoll to Shahdol was necessitated after the demise of BJP MP Dalpat Singh Paraste.
  
  Renuka Sinha, a Member of Parliament of Trinamool Congress from Cooch Behar constituency since 2014, had died recently requiring the bypoll.
  
  Bypoll to Tamluk Lok Sabha seat was caused after TMC MP Suvendu Adhikari won the West Bengal Assembly election from Nandigram seat and became a minister in the state.
  
  EC has also announced elections to two Tamil Nadu assembly constituencies - Aravakurichi and Thanjavur - cancelled by it in May following evidence of money being used to influence voters. These elections will also be held on November 19.
  
  Assembly bypolls will also be held in Hayuliang-ST (Arunachal Pradesh), Nepanagar-ST (Madhya Pradesh), Montestwar (West Bengal), Thiruparankundram (Tamil Nadu), Barjala and Khowai (both Tripura) and Nellithope (Puducherry).

Business Affairs 

On a concrete path: Cement stocks jump up to 239% in one year

• Cement industry volume may have grown in mid-single digit year-on-year in September, cement stocks such as Kakatiya Cement, Shiva Cement and Deccan Cement have rallied up to a whopping 239 per cent in the last one year. Experts believe the demand scenario is expected to improve in the second half of fiscal year 2017 on the back of higher government infra spend and pickup in rural housing post the normal monsoon, with cement stocks continuing to perform well.

  "Newsflow on volumes and prices is expected to improve from November 2016 as construction activities resume post monsoon. We continue to maintain our positive stance on the sector on the back of improving utilisations/realisations/margins over the next few years," said brokerage ICICI Securities in a research note.

  However, the rising prices of pet-coke may offset the already factored increase in cement prices for pan-India players and start hurting costs from the third quarter of FY17. Pet-coke prices have risen to $84/ton in October 2016 from $53/ton in Q1FY17.

  "Given the large usage of pet-coke across companies, we expect substantial increase in fuel cost for most cement names. Rich valuations and risk to lofty earnings expectations for pan-India players keep our stock preference aligned to North-based players such as JK Cement and JK Lakshmi," said Kotak Institutional Equities.

  Ultratech Cement, Shree Cement and The Ramco Cement remain ICICI Securities' top picks. The brokerage also likes Ambuja Cement and JK Laxmi Cement.

  Meanwhile, all-India cement prices improved by Rs 3/bag month-on-month to Rs 332/bag in October 2016 led by price increases in West (+RS 24/bag m-o-m). Prices have increased by Rs 30-40/bag in West, North and Central markets over the past few months.

  On the pricing front, brokerage Prabhudas Liladhar expects discipline to continue in North, Central and South regions, while prices are expected to improve in West and East as they are unsustainable at current levels.

  "We reiterate our Overweight outlook on the sector on the back of robust demand outlook, slowing pace of capacity addition and exit of weak players. We continue to like ACC for the improved quality of operations, Heidelberg Cement on the back of attractive valuations and strong earnings outlook," said the brokerage.

  On Monday, Ultratech Cement reported a 25 per cent growth in consolidated net profit at Rs 613.64 crore for the quarter ended September 30, 2016 on the back of lower expenses.

  The flagship firm of the Aditya Birla Group had clocked a consolidated net profit of Rs 490.59 crore in the year-ago period.

  The stock of Ultratech has added over 33 per cent in the last one year. Angel Broking maintains a 'neutral' rating on the stock.

Sensex surges 200 points, Nifty jumps above 8,550 on positive global cues, ICICI Bank top gainer

• The S&P BSE Sensex on Tuesday surged over 200 points, while the broader Nifty50 regained its key support level of 8,550.

  The headline indices rallied after Asian markets crept up thanks to a rebound in oil prices although underlying risk appetite was cautious on concerns over capital outflows and weak data, especially from China.

  At 9:20 am, the 30-share index was trading at 27,748, up 218.72 points, while the broad-based 50-share index was quoting 8,582, up 55.35 points.

  "We continue to advise traders to remain cautious as an immediate correction towards 8400 cannot be ruled out," said Angel Broking in a research report.

  ICICI Bank continued to gain for the second day in a row and was the top gainer on the benchmark indices.

  Among Asian markets, China's Shanghai Composite gained 0.52 per cent while Hong Kong's Hang Seng Index gained 0.80 per cent. Japan's Nikkei clocked 0.14 per cent.  

  Overnight, Wall Street ended modestly lower as energy stocks retreated along with oil prices, while Amazon and Netflix weighed on the consumer discretionary sector.

  Meanwhile, Federal Reserve Vice Chairman Stanley Fischer warned that economic stability could be threatened by low interest rates and noted the central bank is "very close" to its employment and inflation targets, but said it was "not that simple" for the Fed to raise rates.

Gold prices may regain ground in 2017 but 'bumpy road' ahead

• Gold is likely to recover to above $1,300 an ounce next year as a pickup in physical demand counters more potential US rate increases, a Reuters poll at an industry event showed.

  The precious metal had lost nearly 9 per cent from July's two-year highs to trade around $1,255 an ounce on Tuesday, hit by expectations the US Federal Reserve would raise interest rates in December for the second time in a year.

  Next month's closely watched US election could spur some safe-haven buying, but any Fed moves will remain key to gold's fate, according to 11 analysts, bankers, traders and refiners attending the London Bullion Market Association conference in Singapore.

  Gold will end the year at $1,275 an ounce, before rebounding to $1,305 in 2017, based on the median estimates in the poll.

  "The road is going to be bumpy, but the general trend next year will be upward," said Joshua Rotbart, managing partner at Hong Kong-based bullion service provider J. Rotbart & Co. He sees the price at around $1,350 in 2017.

  Rotbart said he was initially predicting gold to spike similar to its June rally after Britain's shock vote to leave the European Union, with US Republican presidential candidate Donald Trump gaining ground over Democratic rival Hillary Clinton ahead of the Nov. 8 election.

  "Now, when it seems like he's losing the support, we'll have to look for the next challenge," he said.

  But HSBC analyst James Steel said market participants would be more focused on the Fed's tightening cycle.

  After averaging at $1,275 in 2016, the metal should recover to average at $1,310 next year, he said, as "the market would have absorbed the rate hike impact and improvements in physical demand would likely push the price up".

  A Fed hike in December would be the second since December last year when the US central bank raised rates for the first time in nearly a decade.

  Gold is sensitive to higher US interest rates, which lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

  "Next year, I expect the Fed to be a bit more aggressive in tightening," said Shekhar Bhandari, executive vice-president of India's Kotak Mahindra Bank, who sees at least two US rate increases in 2017 which should cap gold at $1,275.

After Xiaomi, OnePlus to offer Re 1 Diwali Dash Sale

• After Xiaomi, OnePlus will join the band wagon of Diwali mega sales, with the Diwali Dash Sale, on its newly launched ecommerce store. Similar to Xiaomi's Re 1 sale, OnePlus will also be selling OnePlus accessories and handsets after users register for the event.

  The Diwali Dash Sale will be held between October 24 and October 26 and the flash sales will happen thrice a day at 12 PM, 4 PM and 8 PM. Users who want to avail the sale offers will have to sign up with OnePlus store. Then share details like phone number and address. At the end of the process the user will have to share a #DiwaliDashSale  post on any of their social media accounts.

  Buyers can also "level up" their chances of winning the more by either sharing it to other social media accounts or verifying the OnePlus device they own. They can also enhance their chances by purchasing  OnePlus accessories from the e-store. 

  Unlike other Re1 flash sales, the user will not be aware of the product they purchase. At the beginning of the sale they will have to draw Mystery Boxes. These mystery boxes can have any OnePlus product in them, including the OnePlus 3 Rose Gold version.

  One user will only be able to draw one Mystery Box from their respective accounts. Once the Mystery Box will be in the cart, the user will have to make a payment of Re 1, and only then will the product be revealed. Un-paid boxes will be retracted automatically if the user doesn't complete the payment within 3 hours of the sale. 

Gold bonds eligible for trading from Wednesday: RBI

• Reserve Bank of India said on Monday sovereign gold bonds (SGB) issued last month will be eligible for trading on stock exchanges from Wednesday.

  "From October 19, 2016, the Sovereign Gold Bonds issued on September 30, 2016 held in dematerialised form shall be eligible for trading on stock exchanges...," the RBI said.

  SGB 2016-17 - Series II was announced by the government on August 29. The fifth tranche of the bond was open for subscription from September 01, 2016 to September 09, 2016.

  SGB, an alternative mode of investment to physical gold, was launched in November last year.

  There were more than 2 lakh applications for the fifth tranche of SGB.

  The government proposes to come up with more tranches in 2016-17.

  The aggressive marketing of the product by government including through its receiving offices, like banks, post offices, NSE and BSE helped in popularising the bonds.

  SGB earns an interest rate of 2.75 per cent per annum, semi-annually payable on initial investment.

General Awareness

Central Government launches satellite-based illegal Mining Detection System

• The central mines ministry launched a satellite-based illegal mining detection system, which will receive tip offs in the form of pictures taken from a mobile phone, automatically generate complaints to state authorities and publish the outcome of a probe in a mobile application.

  About Mining :

  Mining is the extraction of valuable minerals or other geological materials from the earth from an ore body, lode, vein, seam, reef or placer deposits which forms the mineralized package of economic interest to the miner.

  • Ores recovered by mining include metals, coal, oil shale, gemstones, limestone, dimension  stone, rock salt, potash, gravel, and clay. Mining is required to obtain any material that cannot be grown through agricultural processes, or created artificially in a laboratory or factory. Mining in a wider sense includes extraction of any non-renewable resource such as petroleum, natural gas, or even water.
  • Mining of stones and metal has been a human activity sincepre-historic  Modern mining processes involve prospecting for ore bodies, analysis of the profit potential of a proposed mine, extraction of the desired materials, and final reclamation of the land after the mine is closed.
  • Mining operations usually create a negative environmental impact, both during the mining activity and after the mine has closed. Hence, most of the world’s nations have passed regulations to decrease the impact. Work safety has long been a concern as well, and modern practices have significantly improved safety in mines.
  • Levels of metals recycling are generally low. Unless future end-of-life recycling rates are stepped up, some rare metals may become unavailable for use in a variety of consumer products. Due to the low recycling rates, some landfills now contain higher concentrations of metal than mines themselves.

  About Illegal Mining Detection :

  Mining surveillance system (MSS), a pan-India surveillance network using latest satellite technology, to check illegal mining. The technology will ensure sustainable utilisation of the country’s mineral resources.  MSS will trigger an alarm whenever there is an instance of illegal mining outside permitted areas. Karnataka,which saw large instances of illegal mining in the past, stands to gain tremendously from this technology.

  • MSS is a satellite-based monitoring system, which aims to check illegal mining activity through automatic remote-sensing detection 
  • This technology will help design planned development of mining as also provide complete data of laborers working in the sector online, which will lead to better safety standards, the minister noted.
  • The surveillance system covers most of the 2,133 working mines in the country and the union government is working with states to digitize the non-working mines too within three months.
  • Eventually, the entire 3,843 mines in the country will come under the surveillance system. It detects suspicious activities within a range of 500 metres outside the mining lease boundary.
  • The idea is to make mineral administration more responsive in curbing instances of illegal mining activity through public participation and remote sensing detection technology.
  • It is noted that this system covers only illegal mining outside the lease area and not any excavation within the lease area which is conducted without sufficient approvals or after the approvals have expired.