PM launches portal for citizens to contribute in governance

Modi said MyGov (mygov.nic.in) is a technology-driven medium that will provide citizens an opportunity to contribute towards good governance, the statement added.

Prime Minister Narendra Modi today launched a website MyGov that aims to help citizens contribute in governance by giving their opinions and views on important issues like clean Ganga or skill development. The inauguration of the people-centric platform also marks the completion of 60 days of the new government. The Prime Minister said in the past 60 days, the experience of his government was that there were many people who wanted to contribute towards nation-building and devote their time and energy, an official statement said. Modi said MyGov (mygov.nic.in) is a technology-driven medium that will provide citizens an opportunity to contribute towards good governance, the statement added. "The platform would bridge gap gulf between people and government. Democracy cannot succeed without people's participation in government and this participation should not be limited only during elections," the Prime Minister said.

Also Read: Debt MF relief:FM says no retro tax, new regime from Jul 11

Besides Modi, Communications and IT Minister Ravi Shankar Prasad, Cabinet Secretary Ajit Seth, DEITY Secretary R S Sharma were also present at the launch of the portal. National Informatics Centre (NIC) of the Department of Electronics and Information Technology (DeitY) will implement and manage the platform. There are multiple theme-based discussions on MyGov where a wide range of people can share their thoughts and ideas with the government, Sharma told reporters after the launch. "It is also an initiative to build a digital knowledge library. We will guide the people on the topics of national importance on which the government would like to know their views and ideas," he added.

The platform presents an opportunity for the citizens to both 'Discuss' and 'Do', Sharma said, adding, any idea shared by a contributor will also be discussed on the discussion forums, allowing constructive feedback and interaction. At present, there are six groups on the platform -- Clean Ganga, Girl Child Education, Clean India, Skilled India, Digital India and Job Creation. "Citizens can also volunteer for various tasks and submit their entries. These tasks would be reviewed by other members and experts. Once approved, these tasks can be shared by those who complete the task and by other members on MyGov," Sharma said.

Each group consists of online and on-ground tasks that can be taken up by the contributors. The objective of each group is to bring about a qualitative change in that sphere through people's participation, he said. "We will review the working on MyGov in three months and over time the number of groups, tasks and discussions will increase. The platform will also be used as a comprehensive knowledge repository," Sharma added.

The portal can even be extended to act like public audit platform for government projects like citizens giving feedback on status of completed infrastructure projects or availability of various social sector programmes, he said.

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Force Motors Q1 net up 36% at Rs 19cr

Net sales of the Pune-based company rose to Rs 538.42 crore for the first quarter, as against Rs 497.13 crore in the same period of previous fiscal, Force Motors Ltd said in a BSE filing.

Force Motors  today posted 35.87 percent increase in its net profit at Rs 19.39 crore for the first quarter ended June 30.

The company had posted a net profit of Rs 14.27 crore for the same period of previous fiscal. 

Also read: Force Motors spurts 19% as promoters raise stake in co

Net sales of the Pune-based company rose to Rs 538.42 crore for the first quarter, as against Rs 497.13 crore in the same period of previous fiscal, Force Motors Ltd said in a BSE filing.

Force Motors sells a range of vehicles, including small commercial vehicles, multi-utility vehicles (MUVs), light commercial vehicles, sports utility vehicles (SUVs) and agricultural tractors.

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Measuring real-time social data with Unmetric

Social media analytics firm Unmetric's Co-Founder and CEO, Lakshmanan Narayan was in the country recently. Storyboard Editor Anant Rangaswami caught up with him to understand what role measurement plays on the social web. Listen in.

Social media analytics firm Unmetric's Co-Founder and CEO, Lakshmanan Narayan was in the country recently. Storyboard Editor Anant Rangaswami caught up with him to understand what role measurement plays on the social web. Listen in.

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Rel Power submits information on Sasan expansion to EAC

In its June 27 meeting to consider proposal for Moher and Moher Amlori coal mine capacity expansion, the Expert Appraisal Committee (EAC) had sought additional information from the company.

Reliance Power  has submitted additional information on expansion of coal mining for its Sasan power project in Madhya Pradesh for obtaining environment clearance.

In its June 27 meeting to consider proposal for Moher and Moher Amlori coal mine capacity expansion, the Expert Appraisal Committee (EAC) had sought additional information from the company.

Reliance Power has submitted the requisite information sought by EAC, a source said.

EAC had sought additional information by July 2. A company source confirmed that the additional information sought by EAC has been submitted within the deadline by Reliance Power.

Also read: Reliance Power consolidated Mar '14 sales at Rs 1,358.66 crore

The proposal was for expansion of production capacity at Moher coal mine from 12 million tonnes per annum (MTPA) to 15 MTPA and that at Moher Amlori mine from 16 MTPA to 20 MTPA to feed the ultra-mega Sasan power project.

The EAC "after detailed deliberations, sought information for further consideration of the project," minutes of the June 27 meeting stated.

It asked Reliance Power to submit details of land use pattern covering total project area; total mining lease area; total forest land; total forest clearance obtained and balance forest clearance awaited in a tabulated form.

Reliance Power had in September 2012 started mining for coal for the 4,000 MW Sasan project.

Reliance Power stock price

On July 25, 2014, Reliance Power closed at Rs 90.85, down Rs 3.65, or 3.86 percent. The 52-week high of the share was Rs 112.35 and the 52-week low was Rs 60.10.

The company's trailing 12-month (TTM) EPS was at Rs 0.07 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 1297.86. The latest book value of the company is Rs 60.18 per share. At current value, the price-to-book value of the company is 1.51.

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1% Chinese own one-third of national wealth: Report

About one per cent of Chinese households own one-third of the nation's wealth, a report has said, raising concerns about income inequality in the world's most populous country led by Communist Party of China.

About one per cent of Chinese households own one-third of the nation's wealth, a report has said, raising concerns about income inequality in the world's most populous country led by Communist Party of China.

Chinese households on average had a net worth of 439,000 yuan (about USD 71,000) in 2012, up 17 percent from the 2010 level, said the study by Peking University on China's livelihood development.

Also read: Is China set up for a 'perfect storm' in 2016?

However, income inequality rose rapidly during the period, the report said, as the top one percent of Chinese households held more than one-third of the nation's wealth, while 25 percent of households at the bottom owned only 10 percent of the country's property value.

The inequalities grew as China moved away from the stringent socialist ideology of Communist Party founder Mao Zedong to more market oriented reforms in the last three decades which generated vast wealth but widened the rich-poor divide.

The researchers who conducted their study based their main analysis on 2012 data from the China Family Panel Studies, a large-scale survey project conducted by the institute.

The report showed about 74.7 percent of Chinese household wealth came from owning real estate.

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CSOFT:A provider of globalisation communication solutions

Shunee Yee a Chinese entrepreneur is the perfect example of east meets the west. She serves Fortune 500 clients helping them launch their products worldwide using the services of a global communications company Csoft International. Let us take a look at Shunee and Csoft International at YT International.

Shunee Yee a Chinese entrepreneur is the perfect example of east meets the west. She serves Fortune 500 clients helping them launch their products worldwide using the services of a global communications company Csoft International. Let us take a look at Shunee and Csoft International at YT International.

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dwll.in: One stop shop for all interior needs

While we think Google is the go to for just about anything including contact information of professionals Pankaj Poddar & Parikshit Hemrajani beg to differ. When Parikshit had to look for an interior designer online to do up his living room it turned out to be a harrowing experience and so this duo from ISP Hyderabad decided to launch dwll.in.

While we think Google is the go to for just about anything including contact information of professionals Pankaj Poddar & Parikshit Hemrajani beg to differ. When Parikshit had to look for an interior designer online to do up his living room it turned out to be a harrowing experience and so this duo from ISP Hyderabad decided to launch dwll.in, a curated network of interior designers into 2013. Let's take a look at the dwll story.

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Indian Overseas Bank Q1 net zooms over 2-fold to Rs 271cr

Gross NPA of the bank as on June 30, 2014 stood at 5.84 percent, as against 4.45 percent registered during the same period of the previous year.

Public sector  Indian Overseas Bank has reported over two-fold jump in net profit for the first quarter ended June 30, 2014 at Rs 271.72 crore. The city-based bank had reported net profits of Rs 125.79 crore in the corresponding period of the previous year. Total income for the first quarter ended June 30, 2014, grew to Rs 6,284.69 crore from Rs 6,187.15 crore registered during the same period of the previous year.

Gross NPA of the bank as on June 30, 2014 stood at 5.84 percent, as against 4.45 percent registered during the same period of the previous year.

Also Read: Central Bank of India Q1 profit jumps 9 times to Rs 192 cr

Net NPA stood at 3.85 percent in the reported quarter as against 2.81 percent registered during the same period of the previous year. Total business for the April-June 2014 quarter grew to Rs 3,99,188 crore, up by 9.94 percent, from Rs 3,63,087 crore registered during the same period of the previous year.

The bank said total deposits for the quarter grew to Rs 2,21,879 crore from Rs 1,96,213 crore in the year-ago period. Gross advances increased to Rs 1,77,309 crore, as on June 30, 2014 from Rs 1,66,874 crore, registered during the same period of the previous year. CASA Ratio stood at 24.50 percent as on June 30, 2014 as against 25.61 percent as on June 30, 2013, the bank said.

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Jaypee Infratech Apr-Jun quarter net drops 43% at Rs 45cr

Jaypee Infratech Ltd today reported a 43 percent drop in standalone net profit at Rs 45.96 crore for the quarter ended June on the back of lower income.

Jaypee Infratech Ltd  today reported a 43 percent drop in standalone net profit at Rs 45.96 crore for the quarter ended June on the back of lower income.

The company's net profit in the corresponding quarter of the last fiscal was at Rs 81.01 crore, the company said in a filing to BSE.

Also read: SC dismisses JP Infra's plea, upholds green tribunal order

The total income from operations of the company came down to Rs 705.64 crore, over Rs 769.20 crore in the same period of FY'14, the company said.

The total expenses of the company declined to Rs 439.49 crore, over Rs 442.60 crore in corresponding quarter of the last financial year, it said.

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TOP TEN RAINIEST CITIES IN INDIA ON FRIDAY

Rain has reduced significantly across the country but Baroda in Central India received heavy Monsoon rain up to 121 mm in the last 24 hours. According to the latest weather update by Skymet Meteorology Division in India, the west coast will continue to receive fair amount of rain but coastal parts of north Maharashtra will witness subdued activity, in the absence of a fresh Monsoon surge.

Here's a look at our list of top ten rainiest cities in India on Friday:

Cities State Rainfall(in millimeters) Baroda Gujrat 121 Honnavar Karnataka 46 Kozikhode Kerala 43 Mount Abu Rajasthan 41 Ranchi Jharkhand 37 Kannur Kerala 37 Jamshedpur Jharkhand 36 Karwar Karnataka 34 Chittorgarh Rajasthan 33 Goa Goa 31  

By: Skymetweather.com

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Will loan growth drag HDFC Q1 earnings?

Credit Suisse estimates that HDFC PAT may be lower at 12 percent on yearly basis. It says in a report that HDFC's operational performance will remain healthy with a continued traction in retail mortgage growth (20 percent YoY) and stable spreads.

Moneycontrol Bureau

Housing finance company  HDFC will announce its April-June quarter results on July 21.  According to Credit Suisse HFCs will continue strong loan growth trajectory with 18-20 percent  growth annually. It feels that overall  spreads  should remain stable as  bond issuances  were  limited  in  the initial part of the quarter due to the ambiguity  surrounding  the  creation  of  disaster risk reduction  (DRR) impacting borrowing costs slightly but issuances picked up in June.

However, the brokerage estimates HDFC PAT may be lower at 12 percent on yearly basis. It says in a report that  HDFC's  operational  performance  will remain  healthy  with  a continued traction  in  retail  mortgage  growth  (20 percent YoY) and stable spreads.

"We expect loan growth to remain low, in what could be the final stages of a prolonged  downturn  in the truck segment. Overall net interest income (NII) may stay flat year-on-year," it says in a report. 

However, non-performing loans are expected to remain flat on a sequential basis. NPLs usually rise in the June quarter, but since  the  provisioning  on  new NPLs is low it is likely that credit costs  stay  flat QoQ. This would be the second quarter of renewed focus on collections by the company, and it would be interesting to see the results," it elaborates.

Meanwhile, CLSA is positive on HDFC first quarter performance. It expects income to grow at a healthy rate of 16 percent year-on-year led by growth in loans and stable spreads. Asset quality should remain strong and NPL levels should be near the existing range of 70-80 basis points of loans.

"Overall, this will drive 16 percent growth in pre-tax profits. However, the recent change in regulations on deferred tax liability can increase the effective tax rate for the company by about 500 bps, from 27 percent in 1QFY14 to 32 percent in 1QFY15, which will mean that reported net profit growth will be near 8-10 percent," it says.

On Friday, the stock closed at Rs 981.05, up Rs 7.60, or 0.78 percent on the BSE.

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How will Reliance nos impact stock? Experts discuss

Reliance Industries consolidated net profit for the June quarter rose 13.7 percent year-on-year to Rs 5957 crore, beating the average of a CNBC-TV18 analyst poll pegging the number at Rs 5400 crore.

Manish Sonthalia Sr VP & Head Equities- PMS Motilal Oswal Asset Management Co Ltd, Nitin Tiwari VP- Institutional Research Religare Capital Markets and Piyush Jain, Equity Research Analyst - Energy, Industrials and Utilities, Morningstar India discuss the first quarter numbers of the oil and gas major.

Below is the transcript of Piyush Jain, Manish Sonthalia and Nitin Tiwari's interview with Ekta Batra & Anuj Singhal on CNBC-TV18.

Q: A word on gross refining margins (GRMs) - USD 8.7/bbl, how would you look at that?

Jain: That is inline. If I look at the numbers – we were estimating close to USD 8.8/bbl GRM plus minus USD 0.1/bbl, so that's completely inline. However, now the revenue has come higher which means that the capacity utilisation should have gone up, so that has driven the beat on the refining. The oil and gas and refining together are fulfilling the beat which we are seeing on the expectations.

Q: Coming to shale gas business, they have delivered a performance of Rs 559 crore for this segment in terms of EBIT. How would you look at that?

Jain: I think continuation on the trend. We believed that the shale gas would take over the KG-D6 gas at present because we are not seeing that improvement at present in the KG-D6 gas. I think the number of wells that they are drilling; the trend is quite stable at present.

Q: What is your sense - oil and gas clearly is leading the surprise, what is your first comment on the numbers?

Sonthalia: USD 8.7/bbl GRM certainly is slightly better than our expectation of USD 8.5/bbl. The other income is also in line with the expectations of around Rs 2,100 crore. Clearly, it is the refining margins which have led the flight up on the numbers.

Ekta: What is your expectation in terms of GRMs going forward considering that they haven't been able to repeat the USD 9.3/ bbl that they did in the quarter before that? What is the trajectory for the GRMs for the remaining part of the fiscal, at least a near-term visibility for this quarter?

Sonthalia: In terms of near-term visibility exchange rate would get normalized. Last year same time we were looking at 56/USD and today we are at 62/USD. Therefore, second quarter onwards 62/USD is what the exchange rate would be like. For GRMs, the EBIT numbers on the refining side should be closer to around Rs 3,600 crore for the current quarter. One also needs to look at the petrochemical margins that have seen a dip. The same trajectory holds for the current quarter as well.

In terms of volumes from the KG-D6 it was expected around 13 mmcmd, but it is not going to be materially different from the numbers reported in the quarter gone by.

Q: What is your first take on the numbers? From the first look, it looks like refining, petrochemical is in-line with estimates, refining is slightly higher but oil and gas is a bit of a positive surprise?

Tiwari: Basically, the surprise that you see on the exploration and production (E&P) side is due to consolidation of shale gas earnings that was done in the previous quarters. So, that is the surprise that you are seeing in the E&P earnings.

Typically, the point remains that the results are in-line with the expectations because the expectations were built around the domestic earnings. So when shale gas gets added that is how you see a higher profit after tax (PAT) of Rs 5,900 odd crore.

Q: So what is your call on the stock now from current levels?

Tiwari: We have a hold recommendation on the stock with a target price of Rs 950.

Disclosure: Network 18, which publishes moneycontrol.com, is now part of the Reliance Group

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Here's action from round one of Indian Rally Championship

Watch round one of the Indian Rally Championship in Nashik.

Watch round one of the Indian Rally Championship in Nashik.

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Catch the action from Nissan GT Academy

Catch all the action from the finals of the Nissan GT Academy.

Catch all the action from the finals of the Nissan GT Academy.

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Tata Motors' Zest: Will it grab attention?

Is Tata Motors' new compact sedan, the Zest will be the Messiah Tata Motors is hoping for?

Is Tata Motors ' new compact sedan, the Zest will be the Messiah Tata Motors is hoping for?

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Overdrive brings you news from the world of auto

Here is a roundup of entire news from the world of auto.

Here is a roundup of entire news from the world of auto.

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Draft Cab note for govt stake dilution in SBI next month

The Department is currently assessing the capital requirement of all public sector banks and likely to finalise the time schedule in one month, he said.

Finance Ministry is likely to prepare draft cabinet note for government stake dilution in State Bank of India in August to enable it to raise capital for meeting Basel III norms.

"Next month after Parliament session is over," Financial Services Secretary GS Sandhu said in response to a query on when the draft cabinet note on SBI stake dilution was expected.

"We have not decided yet on SBI stake dilution. We are preparing the roadmap at the moment (raising of capital by allpublic sector banks)," he said here today.

The Department is currently assessing the capital requirement of all public sector banks and likely to finalise the time schedule in one month, he said.

Public sector banks require equity capital of Rs 2.4 lakh crore by 2018 to meet Basel III norms. For the current fiscal, the government has allocated Rs 11,200 crore for bank capitalisation.

SBI is country's largest bank and government holds 58.60 percent stake in it. Earlier in January, SBI raised Rs 8,032 crore by selling 5.13 crore shares through qualified institutional placement (QIP).
SBI had raised over Rs 16,000 crore through a rights issue in 2008. As part of its contribution, the government issued bonds to the bank instead of cash.

Sandhu further said "my first priority is insurance bill which is before Parliament. The proposal to raise FDI cap has been pending since 2008 when the previous UPA government came up with Insurance Laws (Amendment) Bill to hike foreign holding in insurance joint ventures to 49 percent from the existing 26 percent.

Finance Minister Arun Jaitley, in the Budget speech, said that "it is also proposed to take up the pending Insurance Laws (Amendment) Bill for consideration of Parliament.

"The insurance sector is investment starved. Several segments of insurance sector need expansion. The composite cap of the insurance sector is proposed to be increased to 49 percent from the current level of 26 percent..."

The move would help insurance firms to get the much needed capital from overseas partners.

SBI stock price

On July 14, 2014, State Bank of India closed at Rs 2412.10, down Rs 9.45, or 0.39 percent. The 52-week high of the share was Rs 2833.85 and the 52-week low was Rs 1452.90.

The company's trailing 12-month (TTM) EPS was at Rs 145.88 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 16.53. The latest book value of the company is Rs 1584.34 per share. At current value, the price-to-book value of the company is 1.52.

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Def Min clears acquisition proposals worth Rs 21,000-cr

Among the major proposals to receive approval is a Rs 9,000 crore tender to provide five fleet support ships for the Navy, for which the Request for Proposal (RFP) would be issued to all public and private sector shipyards, Defence Ministry officials said.

Pressing ahead with its policy to promote domestic military industry, the government today cleared procurement proposals worth over Rs 21,000 crore and also okayed a project for the production of transport aircraft which is open only to Indian private sector companies.

Among the major proposals to receive approval is a Rs 9,000 crore tender to provide five fleet support ships for the Navy, for which the Request for Proposal (RFP) would be issued to all public and private sector shipyards, Defence Ministry officials said.

Also read: FM reiterates govt's plan on financial inclusion  

The majority of the proposals cleared would involve only Indian public and private sector firms and are aimed at increasing the indigenisation of military hardware, they added.

Chairing his first meeting of the Defence Acquisition Council (DAC), Defence Minister Arun Jaitley said, "There are many proposals in the pipeline for the defence forces and, today, we have tried to expedite quite a few of them."

Thus, a proposal for supply of 32 HAL-built Advanced Light Helicopter, 'Dhruv', to the Coast Guard and the Navy at a cost of Rs 7,000 crore was also okayed, officials said.

Under the proposal, state-owned Hindustan Aeronautics Ltd will supply 16 helicopters each to the Coast Guard and the Navy and also provide maintenance for the machines to ensure the "highest level of operational maintenance and efficiency".

DAC also cleared an IAF proposal for issuance of a tender for construction of 56 transport aircraft by private industry players to replace the force's fleet of Avro aircraft, they said.

"This is going to be a significant project in which the private sector would be the sole player and lead to capacity- building in the private sector," Jaitley said in reference to the tender for replacing the Avro aircraft.

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Ultratech Cement Q1 net dips 6% to Rs 628 crore

On a consolidated basis, net sales, however, grew to Rs 5,989 crore compared to Rs 5,272 crore in the corresponding period of the previous year.

Ultratech Cement  today reported a little over six per cent dip in its consolidated net profit for the first quarter of the current fiscal at Rs 628 crore on lower prices and higher variable costs.

The Aditya Birla Group flagship had clocked a net profit of Rs 669 crore during the April-June quarter of the last fiscal,it said in a statement.

"During the quarter, domestic cement sales volume improved by 14 per cent over the corresponding period in FY14.

However, prices continued to remain under pressure. Variable costs increased by 3 per cent mainly on account of increase in prices of petcoke and input material," Ultratech said.

On a consolidated basis, net sales, however, grew to Rs 5,989 crore compared to Rs 5,272 crore in the corresponding period of the previous year.

The combined cement and clinker sales during the quarter stood at 11.70 million tonnes (MT) compared to 10.08 MT in the same period a year ago. The sale of white cement and wall care putty increased marginally to 2.57 lakh tonnes from 2.50 lakh tonnes.

On the outlook for the cement sector, it said, "Cement demand is slated to grow around 7-8 percent, with expected double digit growth in the second half of the current fiscal. The key value drivers will be renewed government focus on housing and infrastructure spending."

During the quarter, Ultratech completed the acquisition of the Gujarat Units of Jaypee Cement Corporation Limited, comprising an integrated Unit at Sewagram and a grinding Unit at Wanakbori with a combined capacity of 4.8 mtpa.

With this acquisition, the cement capacity of the company stands at 58.8 mtpa in India.

 

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Top 5 problems faced by Delhi during Monsoon

Monsoon has finally covered entire India, with rain being observed at many places. Though this has pulled down temperatures and made the weather extremely pleasant, there are several adversities that come along with Monsoon. 

1. Bugs and Insects

The pesky creepy crawly bugs, no matter what you do to eradicate them, find their way into your life. One may find them in weirdest places possible like inside Cars, creases of clothes, and also getting squished on the car windscreen and die.

2.  Water logging in Underpasses

For Delhiites Not a single day passes by, without dreading a commute through the infamous Moolchand underpass and many others in the city especially during monsoon season, as  the water starts logging in the underpasses.

3. Power Outages and Humidity

Power outages and humidity are a match made in hell. There has been scanty rain in Delhi since the arrival of Monsoon season. The humidity is high and with power cuts the sultry weather becomes unbearable. Don`t forget the pit stains and the stench.

4. Vikram breakdown

The breakdown of vehicles is a common sight in Delhi during the Monsoon in India. Slow moving Vikrams and Tata Aces carrying heavy load add to traffic jams caused by breakdowns on Delhi roads.

5. Vegetables prices

Every year during Monsoon vegetables get stupendously expensive, especially the king and queen of Indian Kitchen- onions and tomatoes. Besides bringing tears to your eyes, onions are also burning a hole in the pockets of the common man.

picture courtesy- daily mail & Nadeem Naqvi 

By: Skymetweather.com

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Experts take stock of D-Street's worst week in 15-months

In an interview to CNBC-TV18's Sonia Shenoy and Anuj Singhal, Vibhav Kapoor of IL&FS and CK Narayan, Growth Avenues spoke about the market and their outlook for next week's trade.

Below is a verbatim transcript of their interview

Sonia: If this is still a bull market and it is just a minor correction in an otherwise uptrending market is this a good time for retail investors to be buying into certain stocks that have corrected 10-15 percent last week?

Kapoor: We are not surprised that we are having a correction now. We had always thought that the market was due for a correction and it was difficult to say whether it would happen a little before the Budget or after the Budget but definitely after the Budget and that is starting to play out.

One must realise that even in the best of bull markets you get substantially long periods of significant intermediate corrections in between. We had one rise from about 5900 to 7800, something like 35-40 percent. Therefore, technically or fundamentally or valuation-wise, a correction was very much imminent and that is beginning to play out.

Also of-late we have been seeing a lot of build-up in retail single-stock future positions, which had gone up to about Rs 6000-7000 crore or more than that which is always a sign that the stocks are passing into weaker hands and it will play out as 'buy on rumour, sell on news' type of thing. Therefore, although the Budget was well-received, and it was reasonably good Budget, you are seeing profit-booking happen now.

Sonia: Since you say that the Budget was well-received, I just wanted to ask you on two issues: retrospective tax and GAAR. There is still nothing that has come through, which the markets like. Do you think that is the reason why the market was disappointed even on Friday or is it just routine profit-taking as you said?

Kapoor: The market always finds excuses for corrections when they have gone up so much. Today it is GAAR or retrospective taxation; it could have been some other issue if this was not there. The simple fact is that markets had gone up too much too fast. Lot of the positives, immediate positives at least had been priced into the market and it was just due for a correction.

Anuj: What is your call? Would you agree with the view from Vibhav that it was an overdue correction and would you be looking forward to buy this correction?

Narayan: Absolutely. There aren't any two views that the market had indeed run much ahead of itself. All traders play this brinkman game where they know they are in dangerous territories but then that is the name of the game, right? They just keep playing it till it ends. That is exactly what has happened and whether you attribute it to the Railway Budget or annual Budget which is not really true because those were just incidental events.

The real problem is that we had reached some 7-year highs in terms of the stock future positions just prior to these two events. Since much of it had already got priced in and there was nothing earth shaking in both those sets of documents I think the market was hit with a wave of profit taking.

It began as profit-taking but then overleveraged positions were to such an order that the wave just kept on unfolding Tuesday through Friday and as more and more damage got inflicted on to prices various stoploss levels either set by people voluntarily or enforced upon them by their brokers etc. I think this was entirely a domino set off by overleveraged positions.

People with Rs 1000 in their pockets were actually trading stocks worth about a lakh or ten lakh. Probably until we see that out of the way this is not really over.

Anuj: What would be the pockets where you would be looking to buy now after the kind of correction that we have seen?

Kapoor: I don't think we have seen the end of this correction. The uptrend lasted for weeks and months and we have just had 3-4 days of correction and not even 10 percent of the rise. Normally when these type of corrections start they last much longer.

Even at current levels prices are not really cheap for you to be enticed into buying immediately. So, I would think this correction is going to last may be a few weeks at least. It doesn't mean it will go down one way but it will be up and down but the trend should be down.

If you look on a valuation basis probably the good buying points would be somewhere between 7000 and 7200 on the Nifty and then you would have to look at individual stocks and sectors. Some of your stocks may reach those attractive levels earlier, some may reach later on. So, you need to look at valuations of sectors and you need to look at valuations of stocks and then decide when to buy. I don't think you have to be in a tearing hurry to buy just because the market has gone down 200-300 points.

Sonia: The one positive that came through this week was the Infosys numbers. After a long tine we have seen outperformance as far as margins etc are concerned although revenues were a bit disappointing. Do you see a case being built for Infosys to get rerated and would you advice buying it?

Kapoor: I think so, I think one thing which can happen now while this correction is going on is that some money could shift to defensive sectors. We saw that today, we saw some of the pharma stocks going up, Dr Reddy 's and some others. We saw some of the tech stocks going up partly because of good Infosys results and partly because this money shift is going to happen because these are now sectors which are not heavily bought into, there is a low exposure in them.

Infosys  by itself came out with decent results better than expected margins although the topline was a little lower than expected. A lot is going to depend on what the market sees as the new CEO and what growth he can bring into the company. So, you are going to wait for 2-3 quarters and look at what is happening in the company. Overall, it is not expensive. It is one of the least expensive stocks in the market amongst the large caps. Given that the overall prospects for the software sector look pretty good, it is a good stock to buy as you go along over the next 2-3 months.

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Govt to take call on GAAR implementation soon: Revenue secy

Amid industry apprehensions, Revenue Secretary Shaktikanta Das today said the government would shortly take a view on whether controversial tax law GAAR should be implemented from the scheduled date of April, 2015.

"It should not be interpreted that General Anti-Avoidance Rules (GAAR) is going to be brought in from April 2015...It is also a fact that the new government has not looked at the whole matter. So the new government would examine the whole matter and take a decision," Das said on the sidelines of an event organised by Ficci.

"This (review) will happen shortly. There is sufficient time. We are still eight months away from the deadline," he said.

The Government had earlier proposed imposing the General Anti-Avoidance Rules (GAAR) from April 1, 2015, for those claiming tax benefit of over Rs 3 crore. The rules are aimed at minimising tax avoidance for investments made by entities based in tax havens.

As per the existing proposal, investments made after March 2013 will be covered under GAAR with effect from assessment year 2016-17.

The issue came to light after Minister of State for Finance Nirmala Sitharaman in a written reply to the Lok Sabha yesterday, said that GAAR will be applicable from April 1, 2015.

Clarifying on the issue, Das said, "All that has been said is a factual position that as per the current law GAAR has been deferred by two years and the two-year period ends in March 2015."

Referring to concerns that a flat 20 per cent tax on debt mutual funds has been proposed with retrospective effective from April 2014, the Revenue Secretary said, "CBDT will issue necessary clarification in this matter...There is no retrospectivity at all."

Finance Minister Arun Jaitley in his Budget speech said in the case of debt oriented mutual funds, the capital gains arising on transfer of units held for more than a year is taxed at a concessional rate of 10 per cent whereas direct investments in banks and other debt instruments attract a higher rate of tax.
This allows tax arbitrage opportunity, the Finance Minister said adding this arbitrage has hardly benefited retail investors as their percentage is very small among such mutual fund investors.

"With a view to remove this tax arbitrage, I propose to increase the rate of tax on long term capital gains from 10 per cent to 20 per cent on transfer of units of such funds. I also propose to increase the period of holding in respect of such units from 12 months to 36 months for this purpose," Jaitley had said.

Das said "effective date as it stands today is financial year 2014-15 ie income accruing during the year 2014-15." Asked what happens in case such mutual fund units have been redeemed in April or May, he said, "we will deal with this in the clarification (to be brought by CBDT)." He further said, "there is no retrospectivity at all. There is no creation of fresh (tax) liability. Whatever has been stated in Budget speech, the government and Revenue department would stand by it."

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Here's what is making news in auto industry

Watch all the happenings in the auto industry in Overdrive's Motoring News section.

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Budget 2014 has brought clarity in tax policies: FinMin

Government today said the Budget 2014-15 has brought about clarity in tax policies and it will walk the difficult path to bring growth impulses back into the economy amidst fiscal constraints.

"Both on direct and indirect tax side, the main focus of the government was to revive growth, to revive manufacturing sector, to take steps that will result in creation of jobs, go in for tax rationalisation, reduce tax litigations and ambiguity in policies," Revenue Secretary Shaktikanta Das said.

At the post-budget interaction with industry chamber Ficci, Das said the Budget has sought to bring in greater clarity in taxation policy.

In his maiden Budget presented in Parliament on July 10, Finance Minister Arun Jaitley has tried to provide relief to the middle class by increasing tax exemption limit by Rs 50,000 to Rs 2.50 lakh. It also hiked deduction limit for investments in financial instruments under 80C by Rs 50,000 to Rs 1.50 lakh.

The Budget contains several proposals to boost the manufacturing sector apart from assurance that government will not "ordinarily" bring about any change retrospectively which creates a fresh "liability" or tax demand.  

Finance Secretary Arvind Mayaram, who along with other secretaries of the Finance Ministry was interacting with industry leaders, said government was open to discussing ideas with them and addressing their concerns.

"My own perspective is that this is a growth oriented Budget. It will bring the growth impulses back into the economy...we will have to move a very difficult path ahead, but there is a determination that the government would walk that path," Mayaram said.

India's economic growth slumped to sub 5 per cent in the past two fiscals leading slowdown in revenue generation and high fiscal deficit.

The government has pledged to bring the fiscal deficit down to 4.1 per cent of GDP in the current fiscal from 4.5 per cent in the last year.

Industry had made many demands, Mayaram said, adding that the Budget was not the last one and there would be many occasions to address their issues.

"This is not the only budget government is going to present. This is not the only time that the changes could have been made," he said.

On meeting the fiscal deficit target, Mayaram said: "There are always challenges and we have to go forward keeping in mind there are uncertainties, especially in the global situation. But as of now we are confident that we will be able to manage it at 4.1 per cent."

Meanwhile, Department of Financial Services Secretary G S Sandhu said many initiatives have been taken by the government to take economic growth rate to 7-8 per cent in the next three years.

Banks and especially public sector banks would play an important role in the growth of economy, he said.

To strengthen public sector banks, the government has decided to allow these banks to raise capital largely from disinvestment to meet Basel III norms.

Sandhu said: "Which banks will go first, that we have to work out. We have asked all banks to submit their capital requirement plans. The schedule will be worked out soon."

The decision would be based on various consideration including value of shares and possibility of going up further, he said.

Jaitley said in the Budget speech said that to be "in line with Basel-III norms there is a requirement to infuse Rs 2,40,000 crore as equity by 2018 in our banks. To meet this huge capital requirement we need to raise additional resources to fulfil this obligation".

Also Read: Not a 'big bang' Budget but overall tone positive: HSBC

While preserving the public ownership, the capital of these banks will be raised by increasing the shareholding of the people in a phased manner through the sale of shares largely through retail to common citizens of this country, he had said.

Government shareholding in various banks varies between 56.26 per cent to 88.63 percent.

Sandhu also said that there is a proposal to create an asset reconstruction company (ARC) where some of these banks and the power companies can join hands and can set up a company that will revive incomplete projects and hand it over back to the promoter after revival.

"Similarly for the road sector there is a proposal from the National Highways Authority of India which we have welcomed. They also want to form an asset reconstruction company for the road sector. Because a large number of road projects they are incomplete...and they have not been put to commercial use," he said.

"So with the help of ARCs these projects can be completed they can be put to commercial use and then money can start flowing back. That is another thing that we are looking at," he added.

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Budget 2014: How successful was Arun Jaitley in rebooting India?

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Budget 2014 'addressed almost all concerns': Finance Secy

The Union Budget of 2014-15 that was presented by Finance Minister Arun Jaitley was "growth-oriented" and addressed almost every concerns, Finance Secretary Arvind Mayaram said.

The Union Budget of 2014-15 that was presented by Finance Minister Arun Jaitley was "growth-oriented" and addressed almost every concerns, Finance Secretary Arvind Mayaram said.

Speaking at an event held by the Confederation of Indian Industry (CII), Mayaram said the Budget laid a special thrust on manufacturing, and pointed to various steps the FM had undertaken to boost the sector, such as addressing the inverted duty structure.

Under the inverted duty structure, several finished goods used to be charged lower input duty than the raw materials required to produce them, and the FM addressed it by lowering duties on several manufacturing inputs such as coal tar pitch, battery scrap, steel grade limestone, crude glycerin, etc.

Also read: Budget 2014 has brought clarity in tax policies: FinMin

"The Budget is clear on current account deficit, fiscal gap, inflation and growth," Mayaram said, adding that he was confident the government would contain the FY15 fiscal deficit at the 4.1 percent target outlined by the FM, a "daunting task" by his own admission.

The Budget also provided well for subsidies, Mayaram said, adding that he expects fuel subsidy to get lowered on account of the revisions in diesel price. The secretary further said that the full amount of food subsidy, outlined in the Budget at Rs 1.15 lakh crore, may not be required in FY15.

"Several measures were also taken for capital markets," he said. "Banks can raise long-term bonds without [restrictions on] SLR, CRR. Several contentious areas on FDI in some sectors were addressed."

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Triple bonanza for taxpayers in Budget 2014

For those reeling under the strain of rising inflation, higher rail and fuel prices, Finance Minister Arun Jaitley was unexpectedly kind this year.

For those reeling under the strain of rising inflation, higher rail and fuel prices, Finance Minister Arun Jaitley was unexpectedly kind this year.

At the Union Budget he presented on July 10, Jaitley increased personal income tax exemption limit by Rs 50,000, from Rs 2 lakh to R2.5 lakh in case of individual taxpayers who are below the age of 60 years.

While the income tax exemption was raised, tax slab was left unchanged.

For senior citizens, the exemption limit was raised from Rs 2.5 lakh to Rs 3 lakh.

Not just that, the investment limit under Section 80C was raised by Rs 50,000 to Rs 1.5 lakh in options like PPF, ELSS and small-savings instruments.

Also read: Budget 2014 has brought clarity in tax policies: FinMin

The deduction limit of interest on loan of self-occupied residential property was also hiked to Rs 2 lakhs from earlier Rs 1.5 lakh.

Taken together, the three changes could go up to nearly Rs 39,000 for those in the top income bracket.

But it's not all good news, Jaitley took awa the comparative tax advantage enjoyed by debt mutual fund schemes over traditional fixed-income products by hiking the long-term capital gains tax from 10 percent to 20 percent on transfer of mutual fund units.

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