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EC announces 5-phase election in Jharkhand, JK

Written By Unknown on Minggu, 26 Oktober 2014 | 23.55

The elections in these states are keenly awaited by the Bharatiya Janata Party (BJP) which got a thumping victory in Maharashtra and Haryana Assembly elections.

The Election Commission will announce the dates for Jharkhand and Jammu and Kashmir Assembly elections on Saturday.

Assembly elections in two sates - Jharkhand and Jammu and Kashmir - are scheduled to be held in 2014.

The elections in these states are keenly awaited by the Bharatiya Janata Party (BJP) which got a thumping victory in Maharashtra and Haryana Assembly elections.

The Jharkhand Mukti Morcha (JMM) is ruling Jharkhand with the Congress. The legislative assembly comprises 81 members. The last assembly election was held in December 2009.

The legislative assembly of Jammu and Kashmir comprises 87 members. The last assembly elections were held in 2008. Presently, the state is being run by a National Conference-Congress alliance.


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How to trade Asian Paints post Q2: Analysts say accumulate

Prabhudas Lilladher has reduced FY15 and FY16 EPS estimates by 3-4 percent due to higher employee costs and other expenses. It has increased target price to Rs 639 and upgraded rating from reduce to accumulate

Moneycontrol Bureau

Asian Paints net profit jumped 6.3 percent to Rs 347 crore. The company said the result of the quarter under review is not comparable with the corresponding quarter of the previous year as it acquired 51 percent stake in kitchen solutions provider Sleek International Pvt Ltd in August 2013. Overall expenses in the quarter stood at Rs 3,163.61 crore. In the second quarter of the previous year, the same stood at Rs 2,664.13 crore.

So how to trade it now?

According to Prabhudas Lilladher, Asian Paints' Q2FY15 results were below estimates due to higher ad spend and other expenses despite sustained double digit volume growth across segments. The brokerage has reduced FY15 and FY16 EPS estimates by 3-4 percent due to higher employee costs and other expenses.

However, it has increased target price to Rs 639 and upgraded rating from reduce to accumulate. "We remain positive on huge growth opportunity in decorative paints in India and ability of Asian Paints to capitalise on thesame due to strengths in distribution, branding and manufacturing. We estimate 22 percent PAT CAGR over FY14-17," it said in a note.

Dolat Capital also recommends accumulating with a target price of Rs 680. We introduce FY17 and estimate a 16.8 percent CAGR in revenue and 24 percent CAGR in earnings during FY14-17E. Expect strong PAT growth in the coming quarters, mainly due to lower base of last year and benign raw material cost," it said.

Posted by Nasrin Sultana


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This upcycle will likely last five or six Diwalis: Udayan

Udayan Mukherjee of CNBC-TV18 said that retail investor had been coming back into the market after five or six years and added that a large section of investors who did not participate in the 2003-2007 bull run should now look to become a bit more courageous towards equities

Discussing how the markets are expected to perform over long haul, Udayan Mukherjee of CNBC-TV18 said that retail investor had been coming back (into the market) after five or six years and added that a large section of investors who did not participate in the 2003-2007 bull run should now look to become a bit more courageous towards equities.

"It is time to probably be a bit brave and position oneself for the next up cycle which probably will be the five or six Diwalis," he said.

Below is the transcript of Udayan Mukherjee's interview with CNBC-TV18's Latha Venkatesh, Anuj Singhal and Sonia Shenoy.

Sonia: The market is up, a whopping 25 percent between last Diwali and now and more importantly the mood among retail investors has improved, something that we haven't seen in a very long time?

A: It has really been a very nice ride from last Diwali onwards to this one and the significant point is what you just touched upon that this run up to the Diwali in some small sense has heralded the return of the retail investor to the market after a gap of full five or six years. All mutual fund managers will bear testimony to that that the first signs of them coming back to the market into this forgotten asset class is probably the high point or the big story of the market from last Diwali to this Diwali much more than the fact that we have had a 25 percent rally between those two points.

Let us see what happens now onwards because the conviction of the retail investor or the high net worth investor, the domestic investor would have been tested a little bit by the correction in October and these are usually the good testing points which tell you how strong conviction is in this bull run or this uptrend in the market that we have all been discussing.

So this Diwali is a good time for reflection and to sit back and take stock for a lot of people who have missed out and not participated yet because I believe there is a very large population of investors who were there in 2007 who have still not summoned up the courage to enter the equity markets and this correction that is happening right now is a good point for them to reflect on whether they should be upping their weightage on equities as an asset class once again. Some people have already done it but whether more should join the bandwagon right now and ride the wave to the next Diwali is a very important discussion point.

Latha: What would you one maxim or word of wisdom that you want to impart to our viewers on this Samavat 2071?

A: I would say just be a bit more courageous this time around, you have been in a shell for the last six years, we have played out our down cycle almost. We are probably in the last innings or beyond that of the down cycle. Everything changes, we usually move in six year or five year kind of cycles. It is time to probably be a bit brave and position oneself for the next up cycle which probably will be the five or six Diwalis. That is my expectation and that is the best I can say for people who are still not in the equity market.

We are probably passing through a few dark moments out here where conviction will get tested but the next five or six Diwalis could be, if not like 2003 – 2007, probably a very good time for investing and making money from the stock market. That is my expectation I keep my fingers crossed and I hope people participate and make a lot of money over the next five years for themselves.


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Be patient in this mkt; 20% returns in 5 yrs likely: Mehta

The Indian equity market is in a long-term bull market, but a deep correction is on its way, says Dipan Mehta, member, NSE, BSE.

Mehta says investors have continued to be loyal to realty and gold despite having underperformed.

"This is a long term bull market and we should get easily 15-20 percent kind of returns on a compounded basis over the next 4-5 years may or may be longer depending upon how the reforms unfold and what growth rates we are able to achieve, where the interest levels are. However, one has to build conviction and be patient in stocks. Those who are able to master these two aspects will turn out to be true winners in this bull market," he adds.

Below is the transcript of Dipan Mehta's interview with CNBC-TV18's Sonia Shenoy, Latha Venkatesh and Anuj Singhal.

Latha: Give us a Diwali gift, what would you invest in, what is your best Nifty case or even if it is a non-Nifty set of stocks, what Diwali gifts would you give your investors, your clients?

Mehta: I will give you a list of stocks in various sectors. We are very bullish on the NBFC sector and over there I think microfinance company SKS Micro , housing finance companies like  LIC and  Repco and consumer finance like  Bajaj Finance they appeal to us and I think they have a good shot at being outperformers. Within Tech our favourite is Tata Elxsi . In pharma we prefer  Glenmark and in the FMCG sector  Jyoti Labs and  Emami could be outperformers as far as the peer group is concerned.

In the large cap I think the preference has to be for telecom stocks. We saw Idea Cellular 's numbers and looking forward to  Bharti Airtel as well, I think these two stocks could really outperform apart from of course the private sector banks. So, that is where I think we are kind of seeing our exposure sectorwise. We may be little bit underweight in the large cap tech stocks and a bit cautious on the large cap pharma companies considering a lot of investors are overweight over there and base effect may mean that the performance year on year may not be that appealing.

Sonia: For a lot of retail investors who are watching us right now what would your advice be to them at what stage are we in in the bull market and is this still a time to be buying in the market now?

Mehta: I cannot say at what stage of the bull market we are in. I think it is a long term bull market. As we go on ahead I think targets will be met and new targets will be set per se. My only advice would be that you have to stick into stocks, into equities. Anytime over the next 6-12 months or so there will be a deep correction and your conviction in stocks will be tested.

The only thought which comes to my mind is that gold and real estate have underperformed over the past 12 months or so but you do not see investors selling gold or getting out of real estate.

I think the same kind of expectation or strategy should be there for equities as well that when there are corrections not to get flushed out, not to get scared and sell off but to remain invested and may be increase exposure to equities. So, that is going to be the big test for investors and traders as well.

My sense is that this is a long term bull market and we should get easily 15-20 percent kind of returns on a compounded basis over the next 4-5 years may or may be longer depending upon how the reforms unfold and what growth rates we are able to achieve, where the interest levels are. However one has to build conviction and be patient in stocks. Those who are able to master these two aspects will turn out to be true winners in this bull market.


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Invest for 4-5 yrs; bullish on auto: Raamdeo Agarwal

Market veteran Raamdeo Agrawal, Joint MD, Motilal Oswal Financial Services , expects the auto pack to lead the Nifty in the coming days on the back of staggering Dhanteras sales.

"If you have 100 percent growth in a one day sale it is just a sample of things to come," Agrawal said, adding that the numbers show that consumer confidence is coming back at least in two-wheelers. He expects it to extend to four-wheelers too.

According to Agrawal, predicting markets in the shorter run could be tough, and he feels that if one wants to really invest, he/she should do it for a longer-term, at least for the next four-and-half to five years.

Below is the transcript of Raamdeo Agrawal's interview with CNBC-TV18's Latha Venkatesh, Anuj Singhal and Sonia Shenoy.

Latha: As we stand on the threshold of a new year what is your best pick in the Nifty for the next one year. What might be the leader or the leaders for the Nifty?

A: All auto companies, because if you look at the Dhanteras sales they have been quite staggering I would say. If you have 100 percent growth in a one day sale it is just a sample of things to come. So, all the pent up demand and the consumer confidence is clearly visible in the demand for at least two wheelers and I am sure it is going to spread to cars and even with a little delayed kind of thing the four wheelers and trucks and other things will also pick up.

The good thing about this sector is that it is very consolidated and a lot of growth is there because penetration levels are very low. So, all of it in Nifty, whether it is Hero , Bajaj , TELCO, Mahindra ; Eicher  is not part of it. So, I would be very heavily relying on to auto as a sector.

Anuj: Since you have been tracking the market for so long last Samavat was one of the best that we have had in many years. Do you get a sense that this time we could actually better it or would this year be more about consolidation as far as the index level is concerned?

A: There is expectation since earnings growth is picking up and still the buoyant mood and Modi wave is still very strong and now Mr Jaitley has also come back from the hospital looks very thin, handsome and energetic. So far you had only Modi wave, now you will have Mr Jaitley wave also. So, a combination of these two could be big at least till the Budget and then we will see the Budget and what happens but I would be surprised if you don't make about 15-20 percent but predicting markets in the shorter run is tough but if you want to really invest you should invest for the next four and half to five years at least till Mr Modi's last year comes because at that time the economy will be in the pinkest of the health hopefully.

Sonia: For a retail investor this has been one of the best years. We have heard a lot of comments in this year, something that we haven't heard for a long time in terms of positive sentiment. Do you think equities will outperform all other asset classes, be it gold, real estate, at least for the next three to five years?

A: It looks like because last five years has been very flat and if you look at gold it has been dead and out and in any case it was not a big asset class per se. The real competition is in the fixed income and real estate. I don't know much about real estate but people are stuck with no liquidity and still there is no panic in the real estate market but there is no liquidity, no exit from the market. So, forget about old money but new money is not going to flow there in a big way.

So I would think that as the interest rate cycle goes down and the attraction for equities will become even better and hopefully Raghuram Rajan is going to come here to fight the inflation once and for all and he wants to see inflation dead and out. So, in a world which is full of deflation if we have a low inflation of 3-4 percent instead of 7-8 percent equity will be one way.


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Pfizer's $11 bn buyback plan deflates AstraZeneca bid

Pfizer, which has a market valuation of about USD 180 billion, earlier this year failed in its USD 118 billion bid to buy British rival AstraZeneca. It has an opportunity to make a fresh run at its target from late November under British takeover rules.

US drugmaker  Pfizer is to continue buying back stock, with the board authorising a new USD 11 billion share repurchase plan, deflating expectations that it will make a new bid for AstraZeneca.

Shares in AstraZeneca fell 1.2 percent by 0800 GMT on Friday following the news.

The largest American pharmaceuticals company, whose shares gained more than 1 percent after the announcement late on Thursday, said the move was in addition to the USD 1.3 billion remaining on its current share buyback programme.

Pfizer, which has a market valuation of about USD 180 billion, earlier this year failed in its USD 118 billion bid to buy British rival AstraZeneca. It has an opportunity to make a fresh run at its target from late November under British takeover rules.

Pfizer Chief Executive Ian Read has said the company is continuing to look at deals but investor hopes for a new bid have dwindled recently because of the introduction of new US tax rules.

The US government's tax proposals are designed to make it harder for American firms to shift their tax bases out of the country and into lower cost jurisdictions in Europe, as Pfizer would do by buying AstraZeneca.

The likelihood of Pfizer resuming its pursuit has also been diminished following the collapse of US drugmaker AbbVie's USD 55 billion plan to buy Dublin-based Shire, as a result of the new U.S. tax regulations.

But while investors may well view the big new share buyback as another blow to the idea of a Pfizer bid, ISI Group analyst Mark Schoenebaum cautioned against reading too much into it. "We cannot and should not necessarily make that read-across," he said in a note


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Go long on midcaps, bluechips, quality stocks: Sukhani

The chart for Nifty tells us that we are in a long term bull market, said Sudarshan Sukhani of s2analytics.com. However, he says the markets may correct but the level is known.

"7,800 is now our line in the sand. So far as the Nifty is above 7,800 which is the recent low I have rounded it off we will assume that the correction is over and the Nifty is going towards 8,200 testing the lifetime highs and maybe making newer ones," he said.

Sukhani advises to go long on all midcaps, bluechips and good quality stocks.

Below is the transcript of Sudarshan Sukhani's interview with CNBC-TV18's Latha Venkatesh, Anuj Singhal and Sonia Shenoy.

Latha: What is the overall chart of the Nifty or the Sensex telling you at this juncture, how much could the dip be and what does the high look like at this point in time for 2014?

A: The chart for the Nifty tell us we are in a long term bull market. We have built a base that lasted for four to five years, we have broken out of that base. If the base building takes five years then hopefully the bull market will also give us five years of rallies. So that is the underlying theme over which we are working and through which we are trading. That is a long term theme.

To say if the correction is over, it is a short term call. No one knows that. The markets can correct but we know the levels, which is much more important. 7,800 is now our line in the sand. So far as the Nifty is above 7,800 which is the recent low I have rounded it off we will assume that the correction is over and the Nifty is going towards 8,200 testing the lifetime highs and maybe making newer ones.

Maybe we will go to 8,400 and then come back to 7,800 all these are conjectures, we don't know. Why worry about it, at this point we know we should be on the long side. So far as the Nifty, for the intermediate trader is above 7,800. For the short term trader we keep on talking about what the levels are, where your stop loss should be. At this point we should be long anyway.

Sonia: Tell us what one should be buying in the next one hour in this Mahurat session?

A: Go for midcaps today and just buy and you rightly asked, we shouldn't be shorting this market, not today, because we are in a short term uptrend. I will quickly rattle up the names that are worth looking at.

One is Adani Port ; Latha asked about it yesterday and today is the day when you want to buy it. NTPC , which is giving us a dream pattern, a bullish head and shoulder; yesterday it corrected which means you could actually buy it on a dip. Bharat Forge  which is in a huddle after a sharp correction is giving us a sense that the correction is over and a big break out is imminent, that is three. Finally we have Godrej Industries  which is a high risk buy. We are trying to see if a low has been made and catch that bottom if possible. All midcaps, all blue chips, all good quality stocks, go long.


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Fresh ally trouble: BJP-SAD ties under duress?

It was a strange situation during the campaigning phase of the Haryana's assembly elections. BJP alliance partner in Punjab Shiromani Akali Dal (SAD) led by Parkash Singh Badal and his son Sukhbir Badal went all out to support the Indian National Lok Dal. The Badals insisted they had longstanding ties with the Chautalas and had informed the BJP leadership of their support to the INLD - despite how important winning Haryana was to the BJP.

"SAD and INLD together are contesting for 90 seats. The next government will be that of Om Prakash Chautala. Haryana progressed during Chautala's rule," said Sukhbir Singh Badal, President, Shiromani Akali Dal

The tension between the two parties soon rose to the surface. Former BJP MP Navjot Sidhu hit out at the political positioning of the SAD in Haryana.

"These people (SAD) are the same people who hug and kiss BJP in Punjab and wrestle with it in Haryana. How can our alliance partner in Punjab support a convicted person for the post of the Chief Minister? They are stabbing us in the back," Navjot Sidhu, Leader, BJP, said.

Other BJP leaders in Punjab have also begun to say the party should distance itself from the SAD and contest the 2017 assembly elections in Punjab on its own - powered by the Modi wave. The Punjab BJP unit though maintains that the party will decide on its alliance with the sad at the appropriate time.

According to Kamal Sharma, President - Punjab Unit, BJP, "BJP has become stronger under Modi. Our alliance with the SAD is strong. We will cross the bridge when we come to it."

The Akali Dal has denied any rift - saying ties with the BJP are as solid as ever.

Bikram Majithia, Minister, Punjab, said: "BJP relation with SAD is a deep relationship. When it came to Modi becoming Prime Minister we were the first to support him….if you ask us a hundred times also...this relationship will stay together."

BJP has been the minor partner in the SAD-BJP alliance in Punjab. With 12 seats in the 117 member assembly, hitting the 59 mark to form the government on its own in 2017 might be a challenge. However, the results of the Haryana elections where the BJP went from 4 seats to 47 to form a majority government - may propehsize a favourable outcome for the party in Punjab.


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The Future Of Tax!

Published on Sat, Oct 25,2014 | 17:40, Updated at Sat, Oct 25 at 17:42Source : CNBC-TV18 |   Watch Video :

This week, The Firm reports from on location the 68th Congress Of The International Fiscal Association. 1000 tax professions in Mumbai debating Tax Morality, Double Non-Taxation, Base Erosion, Profit Shifting, Digital Economy Taxation & Treaty Abuse. As the global economy is awash with tax challenges, The Firm focussed on revenue reform – what are countries doing to stake claim to their 'Fair Share Of Taxes'. The many trillion dollar question is the impact on how MNC's do business across the world. In this special episode of The Firm, on location the 68th Congress Of The International Fiscal Association, Menaka Doshi speaks to four of the world's best tax experts - Porus Kaka, Senior Advocate & President - International Fiscal Association; Philip Baker -QC, Gray's Inn; Michael Lennard, Chief - International Tax Cooperation, United Nations & Pramila Shrivastav, Former Chief Commissioner - Income Tax.


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PM Modi inaugurates HN Reliance Foundation Hospital

Prime Minister Narendra Modi on Saturday inaugurated the Sir HN Reliance Foundation Hospital and Research Centre in South Mumbai.

The hospital, in its 90th year, has been completely rebuilt by Reliance Foundation, into a modern 19-storey tower with two heritage wings. The foundation is headed by Nita Ambani.

The rebuilt hospital has collaborations with John Hopkins, MD Anderson Cancer Centre, Massachusetts General Hospital and the University of Southern California. It has all modern facilities.

The hospital will reserve a fifth of its capacity for the underprivileged and provide 10 percent beds for free to the needy and another 10 percent at subsidised rates.

Welcoming the Prime Minister and Maharashtra Governor Vidyasagar Rao at the inauguration Nita Ambani said: "We re-dedicate Sir HN Reliance Foundation Hospital to the people of Mumbai", adding that the hospital will treat "each patient as equals".

Mrs Ambani thanked PM Modi for the initiatives taken by him saying "each of PM's initiatives have a connect to healthcare".

Around 50 doctors of India origin across the world have joined the hospital, she said, adding: "Good health is a fundamental right. It is non-negotiable. Everyone deserves to live life to the fullest. Only a healthy nation can be prosperous."

Addressing the inaugural ceremony, PM Modi said that the need of the hour is preventive healthcare in order to scale down the outbreak of diseases and boost the quality of health in the country.

The PM lauded the efforts of Reliance Foundation in giving a new lease of life to Mumbai's first general hospital built in the year 1925. The PM said that in a way it is a new beginning for the hospital.

Modi stressed on Make in India initiative to develop medical equipment locally, which will help in cutting costs. He even favoured the need to integrate tele-medicine to enable expert opinion even for people living far away is extremely important.

The PM mentioned that another important aspect of good healthcare is the provision of clean drinking water. He went on to exemplify his point by lauding the efforts the Madhya Pradesh government for starting a programme encouraging children to wash their hands.

"The journey from health insurance to health assurance is long and has to be achieved," Modi said, adding that all political parties should have health as their one point agenda.

He also stressed on holistic health and said that he has been pushing for an International Yoga Day.  

Kokilaben Dhirubhai Ambani presented a memento to PM at the inaugural function.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries , appreciated the presence of Prime Minister Modi and Governor of Maharashtra at the event. He also lauded PM's US visit.

Present at the inauguration were Amitabh Bachchan, Gulzar, Shah Rukh Khan, Aamir Khan, Hrithik Roshan, Paresh Rawal, Rishi Kapoor, Neetu Kapoor, Sonakshi Sinha, Saif Ali Khan, Kareena Kapoor, Aishwarya Rai, Bharat Ratna Sachin Tendulkar, Sunil Gavaskar, Praful Patel, Kajol, Rani Mukherjee, Sonali Bendre, union minister Nitin Gadkari and Maharashtra BJP leaders Devendra Fadnavis, Vinod Tawde and other celebrities.

(With inputs from agencies)

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


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Expect HCL Tech to witness downtick by 2�4%: P Lilladher

Written By Unknown on Minggu, 19 Oktober 2014 | 23.55

According to Prabhudas Lilladher, HCL Technologies is expected to witness downtick by 2‐4%, despite possibility of earnings upgrade as revenue moderation is key negative inline with expectation, says the report.

Prabhudas Lilladher's report on HCL Technologies

"HCL Tech reported Q1FY15 revenue softer than PLe/consensus expectation. The company reported a revenue growth of 1.9% QoQ (3.2% @cc) in USD terms for Q1FY15. HCL Tech has signed multi‐year multi‐million dollar deal in excess of TCV $1bn+ in Q1FY15 including ~15 transformational deals. The company has declared an interim dividend of Rs6/share. We expect stock to witness downtick by 2‐4%, despite possibility of earnings upgrade as revenue moderation is key negative inline with our expectation.

HCLT revenue grew by 3.7% QoQ to Rs87.35bn for Q1FY15 (PLe Rs88.4bn, Cons: Rs88.1bn) in INR term, whereas revenue in USD terms grew by 1.8% QoQ to $1,433mn (PLe: $1,460m, Cons.: $1,456m). EBITDA margin eroded by 122bps to 25.1% (PLe: 26.5%, Cons: 25.6%), due to wage hike. EPS grew by 2% QoQ to Rs26.51 (PLe: Rs25.44, Cons.: Rs24.84); due to higher other income Rs3580m (Q4FY14: Rs2110m).

Revenue for US, Europe and APAC grew by +5.6% (+5.7% @cc), ‐0.3% (+2.7% @cc), and ‐8.6% (‐6.4% @cc) QoQ respectively. In terms of services, IMS, BPO and Engg R&D, grew by +1.8% (+3.6% @cc), ‐0.1% (+1.1% @cc) and +7.5% (+8.1% @cc) QoQ respectively. In terms of verticals, Financial Serivess, Retail and Telecom grew by +1.1% (+3.0% @cc), +13.8% (+15.8% @cc) and ‐0.4% (+0.3% @cc) QoQ respectively.

Attrition moderated by 30bp to 16.6%, whereas utilization (blended) eases by 180bp to 82.7% as employee addition was up by 155% to 3.8k. We see limited room for utilization uptick", says Prabhudas Lilladher research report.

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To read the full report click here


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Persistent Systems Q2 profit rises 3.6%, $ revenue up 5%

Consolidated revenue rose by 6.7 percent quarter-on-quarter (up 7.4 percent on yearly basis ) to Rs 464.1 crore in the quarter ended September 2014 while dollar revenue climbed 5 percent on sequential basis (up 11.5 percent Y-o-Y) to USD 76.32 million in the quarter gone by.

Moneycontrol Bureau

Software solutions provider Persistent Systems ' second quarter consolidated net profit grew by 3.6 percent sequentially (up 17.3 percent year-on-year) to Rs 71.3 crore on strong revenue growth.

Consolidated revenue rose by 6.7 percent quarter-on-quarter (up 7.4 percent on yearly basis ) to Rs 464.1 crore in the quarter ended September 2014 while dollar revenue climbed 5 percent on sequential basis (up 11.5 percent Y-o-Y) to USD 76.32 million in the quarter gone by.

However, earnings before interest and tax margin stood at 15.5 percent, declined 110 basis points compared to 16.6 percent in previous quarter and down 440 basis points compared to 19.9 percent in the year-ago period.

Contribution of telecom segment to total revenue declined at 16.7 percent compared to 18.5 percent on sequential basis while infrastructure increased to 56 percent from 54.6 percent and life sciences grew to 13.4 percent from 13.1 percent.

Revenue contribution from North America territory stood at 86.1 percent in September quarter, increased from 85.9 percent in previous quarter while Europe declined at 6.3 percent from 6.5 percent and the rest of world contribution remained unchanged at 7.6 percent quarter-pm-quarter.

Top 10 clients' contribution to revenue dropped by 4% to 45 percent at the end of September quarter from 49 percent in June quarter and even top five clients' contribution slipped 2.6 percent to 36.1 percent from 38.7 percent during the same period.

Onsite utilisation rate in second quarter increased sequentially to 89.7 percent from 88 percent while offshore utilisation rate too increased to 68.4 percent from 65.9 percent during the same period.


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Force Motors Q2 net profit falls at Rs 25.7cr

The company's net sales increased by 27 percent at Rs 592.4 crore against Rs 465.7 crore, Y-o-Y.

Force Motors ' second quarter (July-September) net profit declined to Rs 25.7 crore from Rs 26.9 crore in the year-ago period.

However, its net sales increased by 27 percent to Rs 592.4 crore in the quarter ended September 2014 against Rs 465.7 crore in same quarter last year.

On Friday the share closed at Rs 1,287.20, down Rs 9.80, or 0.76 percent.


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Geojit BNP Paribas posts Q2 profit at Rs 20 cr

It consolidated net sales jumped 58 percent at Rs 70.3 crore versus Rs 44.4 crore, Y-o-Y.

Geojit BNP Paribas Financial Services  has turned profitable in the quarter ended September 2014. Consolidated net profit stood at Rs 20 crore as against loss of Rs 94.2 crore in same quarter last year.

Consolidated net sales jumped 58 percent to Rs 70.3 crore versus Rs 44.4 crore year-on-year.

The company has made provision of Rs 128 crore in Q2FY14.

On Friday the share ended at Rs 37.95, down Rs 2.95, or 7.21 percent.


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Everest Industries turns profitable, Q2 net at Rs 3.4 cr

The company's total income rose 23.55 percent at Rs 246.5 crore versus Rs 199.5 crore, Y-o-Y.

Everest Industries  has turned profitable in the quarter ended September 2014. Net profit stood at Rs 3.4 crore as against loss of Rs 6.6 crore in same quarter last year.

The company's total income rose 23.55 percent at Rs 246.5 crore versus Rs 199.5 crore, Y-o-Y.

On Friday the share ended at Rs 259.65, up Rs 8.40, or 3.34 percent.


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Kolte Patil Q2 profit down 61% to Rs 13 cr on lower revenue

Net sales declined 16.4 percent to Rs 156.7 crore in the quarter ended September 2014 compared to Rs 187.4 crore in same quarter last year.

Moneycontrol Bureau

Pune-based real estate developer Kolte-Patil Developers ' second quarter (July-September) net profit fell 60.55 percent to Rs 12.7 crore on lower revenue and higher employee cost. Profit in the year-ago period was Rs 32.2 crore.

Net sales declined 16.4 percent to Rs 156.7 crore in the quarter ended September 2014 compared to Rs 187.4 crore in same quarter last year.

In Q2FY15, employee cost more than doubled to Rs 11.2 crore from Rs 5.4 crore year-on-year while other income dropped sharply from Rs 5.3 crore to Rs 1.96 crore during the same period.


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Oberoi Realty Q2 profit rises 10% on lower operating cost

Consolidated net sales declined marginally to Rs 183.9 crore from Rs 185.5 crore during the same period due to lower sales in real estate business (that dipped to Rs 156.5 crore from Rs 162.4 crore Y-o-Y).

Moneycontrol Bureau

Mumbai-based Oberoi Realty 's second quarter consolidated net profit grew by 10 percent year-on-year to Rs 70.5 crore led by lower operating cost despite lower other income and higher interest and tax cost. Profit in the year-ago period was Rs 64.1 crore.

Consolidated net sales declined marginally to Rs 183.9 crore from Rs 185.5 crore during the same period due to lower sales in real estate business (that dipped to Rs 156.5 crore from Rs 162.4 crore Y-o-Y). Hospitality business revenue increased to Rs 29 crore from Rs 26.6 crore year-on-year.

Operating cost in second quarter of current financial year stood at Rs 51.31 crore, dropped 39 percent compared to Rs 84.46 crore in corresponding quarter of last fiscal.

Other income declined sharply to Rs 3.85 crore from Rs 12.71 crore while interest cost increased to Rs 1.64 crore from Rs 9 lakh and tax expenses rose to Rs 33.6 crore from Rs 27.8 crore during the same period.

Long term borrowings of the real estate firm stood at Rs 712.50 crore at the end of September quarter of 2014, increased significantly compared to Rs 75 crore at the of March 2014.


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Unichem Laboratories Q2 profit falls 38.4% to Rs 22.3 cr

Net sales grew by 3.3 percent to Rs 274.9 crore in the quarter ended September 2014 from Rs 266.2 crore in same quarter last year driven by exports.

Moneycontrol Bureau

Pharmaceutical firm Unichem Laboratories ' second quarter net profit plunged 38.4 percent to Rs 22.3 crore compared to Rs 36.2 crore in the year-ago period.

However, net sales grew by 3.3 percent to Rs 274.9 crore in the quarter ended September 2014 from Rs 266.2 crore in same quarter last year driven by exports.

Total income from its domestic operations declined 4.5 percent year-on-year to Rs 172.8 crore but exports jumped 18.9 percent to Rs 105.4 crore during the same period.

The healthcare company saw a foreign exchange gain of Rs 1.4 crore in second quarter of current financial year 2014-15 as against Rs 4.08 crore in corresponding quarter of last fiscal.


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IFCI's Rs 2000 cr NCD issue to open on October 20

State-run IFCI has come out with its public issue of secured, redeemable, non-convertible debentures of face value of Rs 1000 each for an amount aggregating up to Rs 2000 crore.

State-run NBFC IFCI has come out with its public issue of secured, redeemable, non-convertible debentures of face value of Rs 1000 each for an amount aggregating up to Rs 2000 crore.

The issue is going to open for subscription on October 20 which has scheduled to close on November 21, 2014.

Proceeds from the issue will be utilised towards lending minimum 75 percent of the amount raised and allotted in the issue; and for general corporate purpose: upto 25% of the amount raised and allotted in the issue.

Axis Trustee Services Limited is the book running lead manager and Karvy Computershare Private Limited is a registrar to the issue.


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Gas price fixed at $5.61/mmbtu, diesel cut by Rs 3.37/l

The government on Saturday has fixed new gas price at USD 5.61 per million british thermal unit (MMBTU), increased from USD 4.2 per mmbtu earlier, reports CNBC-TV18. However, it has reduced diesel price in Delhi by Rs 3.37 per litre following sharp fall in crude oil prices in international markets.

This new gas price hike will be effective from November 1, 2014 while the diesel price cut will be effective from today midnight.

Domestic gas pricing has approved by the Cabinet today, said Finance Minister Arun Jaitley (after a cabinet meeting), adding the new gas price hike will be effective prospectively and will be revised on a half-yearly basis.

The Cabinet modified the Rangarajan formula approved by previous UPA government to bring down the increase in rates from USD 8.4 to USD 5.61, Jaitley said.

He further said, henceforth, diesel price will be linked to the market. On the DBT, he said, the government will link direct benefit transfer with Jan-Dhan Yojana and has decided to relaunch DBT scheme.

"We have decided to reduce prices and in Delhi, prices are likely to go down by Rs 3.37 a litre from midnight tonight," said B Ashok, chairman of Indian Oil Corporation , the country's biggest fuel retailer.

Kirit Parikh, former Planning Commission member, said he is delighted with the government's decision to deregulate diesel. "This move is a step in the right direction. Deregulating diesel will have positive effect on fiscal situation," he added.

Lalit Kumar Gupta, managing director and chief executive officer of Essar Oil , too welcomed the government's decision to deregulate diesel.
 
"Deregulation will up competition & benefit end-consumer and for upstream companies, this leaves more money to invest in exploration and production, Gupta added.

Former Oil secretary SC Tripathi said deregulation should improve competition and bring more players into market.

"This is the proper moment to deregulate diesel and excluding Japanese price from the formula is the right move," he added.

According to him, if crude rises, subsidies must go to players on per litre basis.

Meanwhile, the natural gas prices have not been increased since past three years as the oil ministry faced stiff resistance from power and fertiliser ministry.

Energy expert Narendra Taneja said today's gas price hike will boost production without making power or fertiliser too expensive.

However, RS Sharma, the former ONGC CMD, said he is disappointed with new gas price as the quantum of hike is not enough.

According to him, imported gas costs around USD 13-14 per mmbtu, so USD 7 is a better price than USD 5.61 per mmbtu.

Natural gas distribution company  Indraprastha Gas is the first company that decided to hike CNG prices post gas price hike decision. It said CNG prices will be hiked by Rs 4.50 per unit and domestic gas prices will be up by Rs 2.66 per unit."

(With inputs from agencies)


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Latest IIP data not worrisome: Nirmala Sitharaman

Written By Unknown on Minggu, 12 Oktober 2014 | 23.55

"The new government in the last few months has (taken) every possible measure to revive the confidence like ease of doing business and better regulations," Sitharaman told reporters here today.

The latest Index of Industrial Production data - which logged in 5-month low growth rate for August -- was not worrisome as some other sectors were showing signs of expansion, Minister of State for Commerce and Industry Nirmala Sitharaman said today.

"The new government in the last few months has (taken) every possible measure to revive the confidence like ease of doing business and better regulations," Sitharaman told reporters here today.

She said that had it not been the case, global rating agencies like Standard & Poor's would not have given a stable outlook on India.

"There are definite signs of improvement. The automobile and some core sectors are doing well," the minister said, adding that the IIP data would have no impact on the second quarter of GDP growth.

Industrial production growth as measured by IIP slowed down to 5-month low of 0.4 per cent in August mainly due to contraction in manufacturing output and lower offtake of consumer goods.


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Stocks that should be on your radar Monday

SLIDESHOW

Sat, Oct 11, 2014 at 15:13

| Source: Moneycontrol.com

Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.


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Land acquisition, labour reforms not immediate concern: MS

Even as markets are questioning the Modi premium, a recent Morgan Stanley report has argued that India is likely to be the most reformist country compared to five other countries that have also elected governments with a reform mandate. The reform club countries include Japan, China, Brazil, Russia and Mexico.

MS argues that while Japan delivered on quantitative easing (QE), it hasn't pushed structural reforms in its overmanned services sector nor increased productivity.

China is boldly going ahead with reforming state-owned enterprises; encouraging savings and consumption by reducing financial repression, but it is still saddled with huge capital misallocation and bad debt.

Brazil and Russia suffer from a Dutch disease of commodity driven prosperity that is in danger as commodity prices tumble. Russia has not been able to reset the dependence on energy nor reform its state-owned enterprises. Brazil is also saddled with high wages, high interest rates and low growth.

Also Read: IMF lowering global growth to 3.3% from 3.4% not bad: O'Neil

On the other hand, India, says MS is close to its cyclical downturn, it already has market driven interest rates and exchange rates; it has curbed its current account deficit by gold controls and taken politically tough decisions on subsidies to curb fiscal deficit.

MS says as the cycle turns, inflation declines and government starts spending on infrastructure investment rather than consumption, India is likely to easily deliver a 6.5 percent growth.

Chetan Ahya, MD & Chief Economist Asia Pacific at Morgan Stanley, argues the case for India by saying that India does not have a demographics problem, and nor does it have a high debt to Gross domestic product (GDP) problem. India's growth rates are already much higher than other reform candidates like Mexico and Japan, he adds.

Issues such as land acquisition and labour reforms will not be a deterrent to India's growth till 6.5 percent level. The country will have to address these issues to grow beyond the 6.5 percent mark and hence it is not an immediate concern, says Ahya.

Below is the verbatim transcript of Chetan Ahya's interview with CNBC-TV18's Latha Venkatesh

Q: Your report argues that India is more likely to reform its policies than others in the reform club like China, Mexico, Japan, Russia or Brazil. Why are you so confident?

A: We think India is a better candidate for two reasons. One is that India's structural starting point is better than other emerging markets, that is India does not have a demographics problem, India does not have a high debt to Gross domestic product (GDP) problem.

Similarly on the cyclical front India's growth rates are already much higher than other reform candidates like Mexico and Japan. China is higher than India but we know that China has got a problem of a persistent rise in debt to GDP in the background. So India is in that sense much better positioned than other reform candidates in the club.

Q: There are many who argue that the market is way too hopeful on reforms. So many projects are stranded due to tough land acquisition rules. Even while some environment delays have overcome, many projects are stranded because the delay has ruined the financial assumptions. These are structural problems and they are not going away soon.

A: Just to clarify what we refer to this is still as a cyclical problem. Structural problem is something that seems to be not addressable at all which is that you have a reversal of demographics. It is just very hard to reverse that.

On this context of issues like land acquisition and even for that matter labour reforms, we do think that those are the issues that need to be addressed but to get to the first stage of recovery of 6.5 percent GDP growth and 6 percent inflation, those may not be the immediate hurdles to be addressed but they need to be addressed to get the growth rates going higher than 6.5 percent. We do think that the government is working on that front and we will see progress on that over the next two years to ensure that as we are clocking 6.5 percent for the next two years, you are not facing hurdles again and not able to go through the next stage of recovery process.

Q: So your thesis is that 6.5 percent GDP growth will happen even without serious reforms of labour laws or land acquisition rules right?

A: Yes, call it that we were just not taking the right measures, we were actually taking wrong measures which were destroying productivity. For example, the policy on rural wages, for example what happened to fiscal deficit, or real interest rates. If they are negative, people import gold. Gold imports were USD 60 billion at the peak of the cycle and that itself equates to 1 percent of GDP loss if we had put that money into some kind of other investment other than gold. So all these measures which have been reversed itself will support recovery in the first stage. So I think the framework needs to be put in place right as to what went wrong in the first place and then try to identify. I am not saying that some of the issues that you listed are not to be addressed but they are not the immediate problems for going upto 6.5 percent GDP growth.

Q: According to you what should practically be the list of reforms that the government must deliver to take India beyond that 6.5 percent growth?

A: The investor's bottom line would care for the numbers to pan out and we think all these four factors reversing and going in the right direction will deliver the numbers that they are looking for right now. The key is then to ensure that some of those reforms particularly related to land, labour and tax reforms those are the three things which are in the wings which the government needs to take up. And once those are taken up it ensures that you can deliver some kind of a sustained growth of 6.5-7 percent over the next five years. So they are looking for that but I would say in the near term there is a whole lot of confusion in their mind as to what exactly is needed to get the growth numbers going.

We are debating and arguing here in this report as well is that don't try to formulate a sort of assumption that you need Foreign Direct Investments (FDI) in insurance and that's not happening and therefore recovery will not take place. Have the right framework in the first place as to what are the cyclical issues which can be addressed and can deliver you 6.5 percent growth rate and then look for the longer term policy measures which are needed for a sustained delivery of 6.5-7 percent for the next five years. So differentiate between the next two years and five years growth outlook.

Q: Are there any external factors that can jeopardise your 6.5 percent growth estimates say like Fed tapering or extraordinary dollar strength?

A: We would say that there are two key aspects to watch - one is what happens to global capital flows and global capital markets that seem to be in our mind, less of a risk, the bigger concern is what happens to the exports outlook. Now to the extent to which we are getting more and more data points out of Europe and other parts of the region like China where growth is weak that is a concern which will probably weigh on India's export. Export growth has been held up pretty okay right now, but going forward that could be the risk to watch if global growth weakens and is much lower than what we are building in currently.

Q: Finally a question on the markets. How much of these forecasts are already factored in by India watchers and India investors?

A: The near-term numbers seem to be fairly built in to investors mind. But I think what is probably not completely appreciated is that India can actually deliver a relatively high growth compared to a lot of other emerging markets on a more sustained manner and that is the key to watch. I recall my experience when Indonesia was coming out in 2009, it did have a sustained growth rate of 6 percent and that's what really eventually surprised the market and delivered better returns than what everybody had initially expected. A higher certainty of compounding factor is what I would say still not completely in the price.


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Hub Accra: Fueling entrepreneurship in Africa

Young Turks International brings the story of a Ghana based accelerator program – Hub Accra that is fueling entrepreneurship in Africa.

Young Turks International brings the story of a Ghana based accelerator program – Hub Accra that is fueling entrepreneurship in Africa.

For more watch accompanying video


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Here's why pharma sector will continue outperforming

Moneycontrol Bureau

The pharma sector is expected to continue the outperformance going ahead. According to a Motilal Oswal report, Indian pharma companies may witness a sales growth of 14 percent year-on-year and EBITDA growth of around 19 percent Y-o-Y for Q2 or the July-September quarter of FY15. The financial services firm also expects the adjusted profit after tax to grow around 14 percent Y-o-Y.

This will be mostly driven by:

1) Higher depreciation charge for most companies.
2) High base effect and slower new launches in the US to impact  Sun Pharma and Dr Reddy's .
3) Stronger traction and improved sales in the US to drive revenue growth for Lupin , Cadila Healthcare ,  Torrent Pharma and Alembic Pharma .
4) Taro Pharma is expected to witness a stronger quarter due to price increases taken in the last quarter.

Analysts at Motilal Oswal further believe that Lupin, Ranbaxy , Cadila Healthcare, GSK Pharma , Torrent Pharma and Alembic Pharma will report stronger overall operational performance during this quarter, while Ipca Labs and  Sanofi India will be affected by recent regulatory issues, thus witnessing a muted quarter. Ranbaxy is expected to witness a strong quarter on the back of launch of generic Diovan in the US.

"At the macro level, we expect operating performance for rest of our universe to benefit from a stronger performance in the domestic market and increasing traction in the US. Flat Q-o-Q movement in INR against USD may lead to insignificant MTM impact from monetary forex liabilities," the report elaborated.

The expiry of drug patents in the US is also great news for not only consumers but also the domestic pharmaceutical industry, where generics account for about 75 percent of total sales, according to a report by CARE Ratings.

The Indian pharmaceutical companies have an opportunity to capitalise on the patent cliff and gain a greater share of the growing generics market. At present, India accounts for nearly 40 percent of generic drugs, over-the-counter products and 10 percent of finished dosages used in the US.

Also, the withdrawal of price control guidelines by the National Pharmaceutical Pricing Authority (NPPA) for 108 non-scheduled drugs is expected to be a big positive for the pharma sector.

Speaking to CNBC-TV18, Ranjit Kapadia, senior VP, Centrum Broking said the sector will see relief of around Rs 640 crore with Sanofi India being the biggest benefactor and saving almost Rs 140 crore post the withdrawal order.

However, the sector is marred by regulatory hurdles from the USFDA and pricing issues. The US drug regulator's recent surprise audit at Sun Pharma's Halol Plant in Gujarat left the market in a quandary, resulting in a fall in Sun Pharma stock price. 

Also, instances of an unprecedented price rise in select generic drugs has forced the US Congress to undertake an investigation into soaring generic drug prices. Despite this, financial services firm Elara Securities does not expect any adverse impact on pharma companies in the near-term.

"However, the scope of investigation could expand into areas like dermatology, which has witnessed a sharp price rise recently. Given the sharp price revision, we expect some corrective measures from companies. Given the rising cost pressure, we expect companies to take advantage of the favorable pricing scenario as and when it arises," it added.

Posted By: Anjali Agarwal


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Pakistan again violates ceasefire by firing in Poonch

Pakistani troops resorted to firing on forward Indian posts along LoC in Banwat sector of Poonch district from 1300 hours, a senior Army officer told PTI.

After a brief lull, Pakistan today again violated the ceasefire by firing on forward posts along the LoC in Poonch district of Jammu and Kashmir, drawing retaliation from India.

Pakistani troops resorted to firing on forward Indian posts along LoC in Banwat sector of Poonch district from 1300 hours, a senior Army officer told PTI.

Indian troops guarding the border, took positions and retaliated resulting in exchanges which were going on when last reports came from the area, he said. There was no loss of life on our side, the officer said.

The last instance of firing by Pakistan along the 192-km IB was when its Rangers targeted four BSF Border out Posts (BoP) in Hiranagar sector of Kathua district for 20 minutes on Thursday night.

Also read:  Pak's suicidal desperation solely to prevent India's rise?

The IB has witnessed heavy firing from October 1-9 that has left eight persons dead and 90 people injured, including 13 securitymen.

Besides over 32,000 people have fled from their border homes leaving 113 hamlets deserted along the IB.

India and Pakistan troops traded heavy fire along the IB on the intervening night of October 7 and 8 after Pakistan Rangers shelled almost the entire IB by targeting 60 Border Out Posts (BoPs) and over 130 border hamlets in Jammu, Samba and Kathua districts of Jammu and Kashmir, in which 15 people including 3 BSF jawans were injured.

There has been over three dozen ceasefire violations along the IB since October one.


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Comparo: Suzuki V-Strom 1000 vs Triumph Tiger 800 XC

Comparo: Suzuki V-Strom 1000 vs Triumph Tiger 800 XC

Of the few big bikes I have ridden I've noticed a pattern - big power comes with its compromises. Motorcycles get heavier and suspension gets stiffer. It was the same case with the two street nakeds we rode a couple of months ago. Both the Street Triple and the Z800 had 100PS plus motors wrapped in sharp and sporty frames. They were hugely exciting and had us pumped up at the end of a very fast day. But once the adrenaline wore off, logic began planting its hateful seeds of doubt. Would I want to live with a scrunched up riding position (even the sport nakeds put your legs up and wrists down) every day of the week? Even so I'm sure I would eventually tire of constantly watching out for potholes and speed breakers because of the taut suspension. Shumi would at this point tell me to quit complaining and enjoy the ride. But I'm a practical sort and I find joy in a machine that can do it all. However, until very recently, such a motorcycle seemed an impossible dream.Tiger vs V-Strom Bathinda (18)That changed when I first rode the Suzuki V-Strom 1000 two months ago. Here was a bike that offered the 100PS ballpark figure and a huge slug of torque that made it very fast indeed. And as I soon discovered, beneath that big and intimidating looking body was a surprisingly light (relatively) motorcycle, lighter still than Kawasaki's Z800. And it handled pleasantly well too, eager to lean over all the way till the footpegs kiss the tarmac. But what really had me was the way the Suzuki handled our roads. Good roads, bad roads, no roads, nothing slowed the Strom down. The bike just rolls on, keeping its rider in unexpected comfort and isolation from any nasties in the road.My eyes were opened to the wonder of adventure bikes, particularly to their effectiveness in our conditions. Naturally we wanted to ride more of them, so we decided to start with two of the more affordable examples that you can buy in India. The Triumph Tiger 800 XC is at the most affordable end of the spectrum while the V-Strom, although a good Rs 3.5 lakh more expensive, is the most accessible full size option. The point of these bikes is that they can take you almost anywhere, so in typical OD fashion we decided to take the path less travelled and go to nowhere in particular. Well, at least nowhere anyone would think of as a holiday destination - the town of Bathinda in Punjab fits the description perfectly. Aside from a couple of old forts and a power plant that overlooks a lake there isn't really much else to do there. But then again, with good motorcycles, it's all about the journey, the destination being a relaxing reward at the end.Tiger vs V-Strom Bathinda (21)We were three of us, Makarand, our photographer, Alan and myself. We had no back up car so it was Alan and me riding while Makarand sat pillion. We packed as light as possible, almost all our essentials for three days fit into Vaiterra's impressive Claw bag which sat comfortably and securely on the V Strom. The Tiger with its upswept exhaust and high grab rails wasnt as ideal a mounting point for the Viaterra, so we bungeed a small duffel bag on its luggage rack instead. Surprisingly, Makarand found the Suzuki offered more space despite the fact that it was holding the bigger bag and had the bigger rider. So we set off with Alan and Makarand on the Suzie and me on the Triumph.Tiger vs V-Strom Bathinda (3)It was love at first ride. Barely a couple of kilometres in and I was thoroughly taken by the Tiger. And it was all thanks to its gem of an engine. What really appeals about the 800cc inline 3 is that it's sporty but not compromised. The 95PS engine revs hard to 10,000rpm and produces a sweet wail at the top of its rev band while the exhaust tings and pops every time you roll off the throttle. First gear is good for exactly 100kmph which gives it middleweight sportbike performance. But the joy is that the Tiger doesnt have to be consistently ridden like it's hopped up on Redbull and vodka. Once the pace drops, youll discover a very tractable motor that pulls without complaint from anything above idle. Itll even sit at 40kmph in sixth gear without protest, something the torquey V-Strom is not so happy doing. Sure, it doesnt have the same mid range wallop, but in terms of pure flexibility, the Triumph has the more capable motor.Tiger vs V-Strom Bathinda (12) Big wheel with skinny tyre and a solid engine bash guard hint at the Triumph Tigers off-road intentTiger vs V-Strom Bathinda (13) The Tiger's simple dials offer enough informationThe high exhaust in the Triumph restricts luggage options The high exhaust in the Triumph restricts luggage optionsAfter a couple of hours, switching to the V-Strom was a whole different feel. Clamber aboard (both these bikes are tall machines) and youre greeted by a slightly more compact feeling cockpit. Strange as that may sound considering the Strom is actually the larger and heavier, it's all down to the ergonomics. While both bikes seat the rider fairly upright, the Tiger comes with a wider handlebar and slightly rear set footpegs. Its a slightly sportier and more off-road friendly riding position but it does make the bike seem a bit larger. The V-Stroms friendly nature continues as you ride, the bike feels stable and light to steer which belies its 228kg wet weight, some 13kg heavier than the Triumph. But if theres ever a motorcycle built for spending long hours on the open road, it's the V-Strom. The 1037cc V-twin produces 101PS and a strong 103Nm of torque at 4,000rpm. It's this torque spread that defines the riding experience. The twin which feels a little vibey at idle smooths out quickly and propels you down the road in an effortless and remarkably silent fashion. The V-Strom's punchy midrange and low noise levels make it a great stress free companion when youre looking at clocking hundreds of kilometres at a stretch. The only mild irritant was that the V-Stroms windscreen seemed to generate a lot of buffetting around the head. Alan whos shorter and has a more aerodynamically efficient engine, didnt find it as big of a problem but agrees that it definitely exists. None of the nine adjustable positions in the windscreen seemed to make things better for me and I prefered the fixed screen on the Triumph.Tiger vs V-Strom Bathinda (22) Easy to read dials on the Suzuki V-Strom offer plenty of informationTiger vs V-Strom Bathinda (10) The more road biased Suzuki has no bash guardTiger vs V-Strom Bathinda (15) The V-Strom's rack supports upto 10kgTiger vs V-Strom Bathinda (23) Nine- way adjustable windscreen on the V-Strom generates some helmet buffeting regardless of positionWe decided to avoid the fast but boring Karnal highway and chose a less obvious course instead. The SH15A, NH10 and NH64 route was convenient since we were starting from Gurgaon and it took us via Jajjhar, Rohtak, Fatehpur, Sirsa and finally Bathinda. The 370km route was a mix of dual carriage highways, broken village roads, fast four lane sections and some brilliant riding roads around Sirsa. All we were missing were some ghats which are rather hard to come by in this part of the country. No matter the conditions, the bikes persisted without complaint. The ride quality on both the bikes give you such carefree confidence that you dont have to bother about anything. The Triumph with its higher ground clearance simply sailed over the worst of the speedbreakers but the V-Strom needed a bit of restraint over the sharp ones and scrapped its exposed belly a couple of times. But then, before you blame the bike, you have to consider the load it was carrying - one stuffed Viaterra and two well fed journos on the wrong side of petite Two twists of the very convenient remote adjuster added some preload to the V-Stroms rear suspension and the bike never touched down again. Fortunately the added preload didnt compromise the fantastic ride either and the V-Strom still continued to be the more supple of the two although I was very comfy on the Triumph as well. Where the Suzuki did have a clear advantage was in the braking department. The Triumph's brakes are perfectly up to the job but require a strong pull of the lever. The Suzukis however feel like theyve been lifted clean off a sportsbike and pack big power with a progressive feel. Everytime we swapped bikes, the rider moving to the Suzuki ended up braking more than he planned to the first time and then immediately appreciating the superior stoppers on the Strom.Tiger vs V-Strom Bathinda (4)400km may not seem huge but the journey took us nine hours thanks to plenty of stops for photographs. We also had to pull over to make sure the camera equipment stayed safe when the clouds opened with a vengeance. But it was the final stretch after Sirsa with perfect tarmac and a beautiful canopy of trees that will be etched in my memory. It was a fast, exhilarating ride with the trees echoing the Triumphs angry scream as we powered through. The Strom, although more silent, was effortlessly keeping up, Alan clearly having a good time while Makarands grin said he was enjoying the ride as much as a pillion possibly can. Finally, at six in the evening we entered Bathinda city where we faced a three kilometre ride in pretty slow and heavy traffic. And thats where we saw a completely different side to the bikes.Tiger vs V-Strom BathindaAgain, both had their plus and minus points. The Suzuki needs more shifts and that begins to bother you after a while because the clutch isnt very light and the lever extends quite far out, even on its closest setting. The Triumph on the other hand was happy pottering around in third, even fourth gear without complaint and the clutch was definitely lighter than the Suzukis. The problem with the Brit was that after about ten minutes in slow moving traffic it gets rather hot and your left thigh will feel like a rotisserie chicken on a slow flame. It's only a sensation however and the bike's temperature gauge sits comfortably below maximum. Granted, this is pretty common with most big bikes but the only reason we bring it up is because the Suzuki runs amazingly cool, no matter what the condition. The litre engine produces just 100PS so it's quite unstressed, but either way Suzuki has done a very impressive job with heat management.Tiger vs V-Strom Bathinda (6)That evening, over a couple of cold ones, we discussed what we liked with each bike. Both Alan and I had a slight bias for each bike and thats because we both look for different things in a bike. Alan likes a slower motor with a lot of thump which is why he naturally gravitates towards twins (not the human kind, he insists). I, on the other hand, love a smooth engine - I dont want to feel an engine between my legs so much as I want smoothness, a sweet noise and the ability to rev it out. And in that respect, the Triumph is right up my street. However both Alan and Makarand seemed to prefer the Triumphs seats and found the Suzukis slightly soft over a day of riding. I honestly found both pretty comfortable but that could be just because I dont happen to weigh a lot.Tiger vs V-Strom Bathinda (5)The next day was spent shooting in and around Bathinda. Punjab has fields everywhere and most farmers were happy to let us tear it up on the mud roads that connect their crops in exchange for a look at the bikes. So far, the Suzuki was the easier and more capable motorcycle on the road. But now we were in the Triumphs territory. The Tiger is teeming with features that hint at its off-road eagerness. The wide handlebars, the huge 21-inch front wheel wrapped in skinny 90 section rubber, the standard brush guards, the engine bash guard - they all make sense when you take the Triumph off the beaten path onto a beaten path. These muddy mid field paths are covered in a thick layer of fine dust. The V-Strom, with its fatter 110 section front tyre found itself weaving around uncomfortably while the Triumph sticks steadfastly to the line the rider chooses. Theres no doubt that the Suzuki can easily handle such situations - it's just that the Triumph feels more at home here. The Tigers brakes feel easier to use here too and the extra ground clearance is a huge help. Both bikes come with ABS, however, the V-Strom benefits from its three stage traction control system. But then the Triumph with its smooth throttle and manageable power never felt like it needed the electronic aid. By the end of the day, it was clear which bike wed chose if a trip to Ladakh was on the cards.Tiger vs V-Strom Bathinda (19)Four tiring but exciting days later we were thoroughly sold on both bikes - they really are the smartest kind of big machines available in India today. The Triumph may seem a steal at about Rs 13.7 lakh but its actually the Suzuki that is the better deal. For the extra money you get high spec fully adjustable suspension, traction control, a slipper clutch and slightly better build quality, in general. But choosing between these bikes is a matter of introspection into what you want from a motorcycle. I personally have huge respect for Alans pick, the Suzuki but my heart yearns for the Triumph. Even so, the Triumph isnt perfect in my book - it's a little too off-roady for me. Id rather have one with a smaller front wheel and a narrower bar. Triumph actually has such a bike on sale abroad in the standard Tiger 800 (we only get the XC in India). Its actually cheaper than the XC too. Our friends at the Delhi dealership tell us the Tiger 800 XC is one of their fastest moving motorcycles. Maybe that could prompt Triumph to bring the standard 800 down at some point and possibly even locally assemble it. That would result in a more realistic price, hopefully around the Rs 10 lakh mark. What a fantastic bike that would be.Tiger vs V-Strom Bathinda (20)Images: Makarand Baokar

Other stories byRishaad Mody:

Mahindra Gusto India first ride reviewThe sham(e) that is the Indian licensing systemA drive into the Himalayas in four fantastic SUVs: Mercedes-Benz Starstruck2014 Toyota Etios Cross vs Volkswagen Cross Polo
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Mkt weekahead: Earnings, Maha state elections, inflation

Domestically, earnings of blue-chips such as Reliance Industries and Tata Consultancy Services key for shares.

Worries are growing India will be hit by tumbling global markets.

Investors fear the prospect of a global slowdown and the end of US monetary stimulus.

India has attracted a net USD 34 billion in foreign investment this year.

Domestically, earnings of blue-chips such as  Reliance Industries and  Tata Consultancy Services key for shares.

Nifty seen in 7,800 to 8,000 range.

Consumer inflation data on Monday key for bonds and rupee.

September CPI forecast to have risen 7.2 percent year-on-year vs 7.8 percent in August - Reuters poll.

India to also report wholesale inflation during the week.

Trade data is also possible, although no date has been set.

Benchmark 10-yr bond yield seen in a 8.40-8.55 percent range.

The rupee seen in a 60.80-61.30/dollar range.

KEY EVENTS TO WATCH

No date: Sept trade data (tentative)

Mon: Sept consumer price inflation (1730 India time/1200 GMT)

Reliance Industries,  IndusInd Bank earnings

Tue: Sept. wholesale price inflation (1200/0630 GMT)

Bajaj Auto 's results.

Wed: Markets closed due to Maharashtra state elections

Thu: Tata Consultancy Services, Hero MotoCorp 's

earnings

Fri:  Axis Bank , Zee Entertainment Enterprises '

earnings.


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Modi slams dynastic politics in Haryana

Slamming the political families of the state, Modi said they have done nothing but only filled their pockets. "Five families have run Haryana until now and it has only benefited these families. Look at the coalition...they fight in front of people like WWF.

Asking people to discard dynastic politics and "goondasahi", Prime Minister Narendra Modi today said there was no other option but to vote for a majority government of BJP if Haryana has to progress.

Slamming the political families of the state, Modi said they have done nothing but only filled their pockets. "Five families have run Haryana until now and it has only benefited these families. Look at the coalition...they fight in front of people like WWF.

"They have an agreement that one family will rule for five years while the other family will badmouth the ruling family. In the next elections, other family comes to the power and circle goes on. You have to save Haryana from these 'goondasahi' and dynastic politics," Modi said at the election rally.

He said the role of Sirsa is crucial in the elections and his government will come with a special model of progress if voted to power.

Also read:  Adarsh Gram Yojana not guided by money, says PM Modi

"Sirsa is like an island cut off from rest of the state. It needs integrated development, it needs railways and road connectivity, Internet connectivity. If BJP comes to power it will come up with a special model for the progress of the region," Modi said, adding "development is key to progress".

Referring to one-rank one-pension issue, Modi said as promised his government has successfully implemented the one-rank one-pension scheme.

"There is no battle in which youth of Haryana have not sacrificed their life. There was this issue of one-rank one- pension. But when we came to power, we decided in this regard and made provisions for the same and fulfilled the promise," he said.

He stated that a positive trend was coming out from poll surveys.

"All poll surveys and analysis have said BJP will either be the number one party in Haryana or will get majority. It is for sure that the next government will be of the BJP but it is you who has to decide whether you want full majority BJP government," the PM said.

As Modi spoke, an enthusiastic crowd specially youth cheered him jubilantly. Many of them had worn Modi masks and Modi caps.


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'Low intl prices have slowed down e-auction of ore in Goa'

The process of e-auctioning of iron ore lying at jetties, MPT and mines in Goa is not picking up
pace due to the low prices in international market, a senior member of the Supreme Court-appointed monitoring committee said today.

The state government has e-auctioned only 4 million tonne of the total 15 MT ore lying at jetties, mining leases and the Mormugao Port Trust. The monitoring committee has, however, expressed satisfaction over the e-auctioning process.

"There are several factors that are responsible for the e-auctioning being done at slow pace. The state had rainy season since April till now. Also the prices of ore in the international market are low," UV Singh, member of the committee, said here. "We are quite satisfied with the process adopted by Goa government to e-auction the ore," said Singh, who would be submitting the committee's report to the apex court by October 21.

Slowdown in the Chinese economy is affecting ore exports, he said. Iron ore from Goa is largely exported to China.

The existing China market had been monopolised by ore producers from Brazil and Australia, he added. Very little of the ore produced in Goa is consumed in the country, so the exports are crucial, he said.

"I know that there is only one buyer in Karnataka that takes the ore (in Goa), but for that too, there are constraints of transporting. So the buyer is purchasing the ore from Karnataka itself," Singh said. The state, being the owner of the ore, had to get the best prices, he added.

It was up to the state government to decide the timeframe for exporting the entire 15 MT of ore, he said, adding that the committee would not set any deadline. "The state government is wise enough to take action," he said.


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'India poised to become next 'Anglo-Saxon' economy'

Written By Unknown on Minggu, 05 Oktober 2014 | 23.55

CNBC-TV18 travelled to New York to cover Prime Minister Narendra Modi's US visit. In the city, our journalists reached out to a host of Wall Street veterans to see what they make of the India story.

In this interview, CNBC-TV18 spoke with Rohit Sah, who has been covering the Indian market as part of an emerging-market basket since 1996: first at Oppenheimer and now at TCW International, where he is portfolio manager for the asset manager's smallcap strategies.

Sah argued that out of all the BRICS countries, India alone looks set to join the select band of "Anglo-Saxon economies". Read on to know what Sah meant by an "Anglo-Saxon" economy and why he thinks India is poised to become one.

Edited excerpts from the interview with CNBC-TV18's Latha Venkatesh.

Q: Why are you so confident that of all countries, India will be an Anglo-Saxon economy?

A: Let us define what an Anglo-Saxon economy is. First of all, it is characterised by low-government spending, it generally has an open current account, secure property rights and stock market and capital markets which are geared towards growth. So, if you look at the successful economies in the last 100 years, they have been the US, United Kingdom, Australia, Canada and Hong Kong.

India today is not an Anglo-Saxon economy, in 1947 it was. However, today we have a long way to go before we get to being an Anglo-Saxon economy.

However, this election of 2014 has provided a political mandate to move away from the Fabian socialism that has been practiced unfortunately for the last 60 plus years in India.

So, I am hopeful; I think the political mandate is there. You have a prime minister who has demonstrated his ability to execute such an economy in the state of Gujarat. So, we can only hope for the best after that.

Q: What makes you so confident? Modi has accepted the Food Security Act, he is not talking of privatisation; he didn't even privatise PSUs in his own home state. So, why should you be confident that we should be in this Anglo-Saxon category?

A: I think the political reality in India is that it is a very poor country and a very unequal society. So, any Prime Minister of India has to take that into account. Modi comes in with a very large political capital base but that is a finite capital base. For him to be able to execute on the economic reforms where there will be losers as well as winners, you have to carry the country along with you.

So, these are initial steps, which have not done away with redistribution policies. I would say they have streamlined it but that is the reality of India. Over time you will see these things improve.

What I am expecting is that after the Maharashtra elections are over, you have to see some solid reforms come through for this optimism to be maintained about India.

Q: A lot of investors have already begun talking of a pulling back India's so called Modi premium especially after that decision was not taken on gas price increase. How long are you willing to wait for action from the new government?

A: Let us begin with the Modi premium and let us just define exactly what that is. First of all, the economy in the last few years has gone down so much that people across economic spectrum have expressed frustration.

I have had some of the richest people come to my office and tell me that they have never voted in their life but this time around they are going to go and register and vote.

When analysts come to my room and say that if this election is not a good election result, they are going to send their children out of the country, I have read about rickshaw drivers in the city of Benaras talking about the dollar-rupee rates. When you look at all these various voices coming across the spectrum, it is clear the reality has sunk in; you need economic reforms. This redistribution approach of the Fabian socialisms of the Congress party is dead.

To me the telling election was the Rajasthan election of December 2013 when the blatantly populist government of [Ashok] Gehlot was completely wiped out. I think all these are very good indicators that Modi comes with a very high political capital which he can afford to spend.

However, one question I am not sure about is whether is it a Modi premium or is it a BJP premium? Have people voted for Modi or have people voted for the BJP and that is an uncertainty right now.

If you move to the next step, you have to give him some time to get in, wait to see all the files that are there, get the bureaucracy in action. However, I do expect serious action after the Maharashtra elections. So, right now he is talking the talk; we have to walk the walk after the Maharashtra elections; a lot of political capital is still left so.

Q: You are the king of small and midcap stocks in your fund; year-to-date (YTD) the Nifty has delivered about 25 percent gains, midcap and smallcaps have been giving between 45 and 65 percent gains. So, are we in bubble terrain here?

A: Let me tell you what a very experienced fund manager colleague of mine told me. He said he was short Cisco back in the 1980's and he said he lost his shirt on it. The reason he lost his shirt was because the market correctly looked forward and said this is a fantastic story, this is going to be a 10-year story and Cisco peaked out at a USD 0.5 trillion market cap. So, I would say the same thing about the Indian smallcap market.

The Indian smallcap and midcap market unlike the largecap market is primarily geared towards the domestic economy. The domestic economy is coming off a very low base, you have tremendous tailwinds right now in favor of it and you have a government which has shown willingness to reform in the past. So, valuation is not an issue.

If you want to be buying the Indian smallcaps, what you have to focus is not on valuation but you have to focus on the quality of the management, the quality of the business and the financial returns that you are getting from these businesses and after that the market will take care of itself.

Q: Your biggest overweight sector is I noticed financials. You have 29.8 percent of your funds there. Now Rural Electrification Corporation (REC)  is the top holding in that list. Do you like the PSU banks?

A: Let me just give you an overview of the financial sector. In the last 12 years, the growth of India's gross domestic product (GDP) in US dollar terms has been 12 percent. That is despite the fact that you had a Sonia Gandhi led government which didn't know what they were doing or maybe they knew what they were doing but it wasn't the right thing to do. Now, if you look forward I don't see any reason why India can't grow at 12 percent for the next 12 years with the right reforms. If you grow at 12 percent you double your economy in six years, in 12 years [growth is] quadrupled. So, you go from a USD 2 trillion economy today to an USD 8 trillion economy in 12 years time.

As we know that is one of the biggest accumulations of GDP in human history in that shorter time if that really does happen. The biggest beneficiary of this sort of GDP expansion have to be capital markets and financial deepening. So by default the financial sector has to be a big winner in the India that we hope to have in the next 12 years.

Now regarding public sector banks I am not optimistic. If I was the government what I would do is two things. First I would merge these banks as fast as I can. So, the PSU banks which are in the North with the South and sort of cut them down in size and importance that way. The second thing I would do is by default asset-stripping.

So for example, many of these PSU companies own a lot of property. What I would do is I would take these property holdings that the banks have and all their PSU companies have, put them in to a REIT, sell that REIT and you get some value out of these holdings that you have. However, in the long run these PSU banks are not the place to be.

Q: If not PSU banks what attracts you in the finance space in general is it private banks, is it non banks?

A: What I would do is I would think about the Indian economy growing from what it is today to becoming a global financial market and think about all the things that you need to get from here to there. So the first thing you need is very good rating agencies. So I would think about that sort spurt of the capital markets. I would definitely look at the private banks; both small, mid and large all of them. That is the easiest way to play the deepening of financial markets in India.

I would look at also the non-bank financial companies (NBFCs) but given governor Rajan's pronouncement so far it seems to me you are better off buying the private sector banks rather than the non bank financial companies. Also there is companies which will benefit from financial inclusion. In the financial sector these are smaller companies, they would be some of the ones I would look at.

Q: You have PSUs like Nalco , Engineers India Limited (EIL) , and Bharat Earth Movers Limited (BEML) . Now what's common, what kind of PSUs do you normally like?

A: Again let's go back to the crystal ball and look at India in the next ten years, you have to develop a global continental sized economy and that's the right way to think of India in the future. You have an economy which will look very similar to the China and the US in next 12 years.

So you have to think in terms of what sectors have to grow a lot before you can get there and which sectors are the ones where the Indian public sector is very well geared towards. So I would look at logistics as one, I would at property as another one; I would look at any sector where the public sector company has a natural monopoly.

I would shy away from PSU banks and I would shy away from any manufacturing company that the Indian government owns and that's the way I would go.

Q: The prime divestment candidates that are on the anvil are Steel Authority of India (SAIL) , Oil and Natural Gas Corporation Limited (ONGC)  and Coal India . Do you fancy any of these stocks?

A: The Indian government has a demonstrated track record of selling these assets cheap simply because nobody believes them any more. So as a trade these are good trades. Coal India is a good trade, SAIL would be a good trade. I would hesitate to call them investments for the long-term. So I would stick to the companies in the public sector which are run every well.

Which are natural monopolies and I have already given you hints of which kind of sectors I would go into.

Q: Do you like the oil PSUs? They have been actually quite a rage on expectations of a fuel price decontrol and in fact lower subsidy burden?

A: Let me take ONGC as a very good example what problem might be for these companies. Most of ONGC's revenues and profits come from Bombay High. Bombay High is unfortunately a very old oil field and it is literally dying under their feet, they are running just fast to just standstill. So in my criteria of companies which I buy which are highly profitable, fast growing and able to maintain the first two characteristics for a long time ONGC does not fall in to that market.

The only oil company in India which really does fall in to that market that I like which is high recycle ratios in oil companies, long lived oil assets and very fast payback periods on oil wells is Cairn India  but unfortunately Cairn India has serious corporate governance issues and so it is best to avoid Cairn India.

By default I would say the oil sector in India unfortunately is not the right place to be. India is the very geologically interesting country in terms of oil and gas discoveries. You have already had the KG-D6 as a potential world class asset but I am sure there will be others coming up in the future and what you want to do is you want to find those companies which are sitting on these kind of assets and may be it is ONGC in the future but the only time will tell.

Q: Actually most India investors seem to like autos ands auto ancillaries, why not they have done very well year to date, anything that you like in this space?

A: India has some very good auto ancillary companies I mean Motherson Sumi  and Bharat Forge  are the ones which immediately come to mind. I have not looked at others but those two are the ones I would recommend.

Q: This far this year liquidity has been very favourable for India. If the US Fed were to hike interest rates do you see a liquidity drought?

A: I don't think the Fed is going to hike rates. I think the US economy is not as strong as everybody thinks. What we have is a growth scare as some people call it, the scare that the US economy is growing faster than it is able to and leading to inflation. I don't see any such possibility happening. So, in that scenario what you have is the dollar strength. However, on flip side we also have China slowing down. So, commodity prices are coming down.

For India the most important things is not the Fed, it is the oil prices which are much more important, coal prices and so on. So, in that scenario India does very well because if the Fed is not raising rates, the liquidity will continue to move into emerging markets or at least to some emerging markets and India is by far the best story out there.

If the Fed were to raise rates that would probably mean that the US economy is doing a lot better than what I expected to do. If that is the case then the US will be importing a lot more goods from everywhere that should be good for global growth. However, only time will tell. Right now, I am assuming that the Fed cannot raise rates although the liquidity into emerging markets will slowdown.

The credit story in India is improving by the day and as long as Prime Minister Modi can deliver on his economic reforms I don't see any reason why the foreign money will go to a future continental sized economy like India.

Q: Chinese slowdown and the commodities down cycle has been very good for India but how long do you think both these trends will last?

A: The commodity market is right now being torned between two different factors. On the supply side we have a real crisis developing. After 2016 when you look at the future copper supply, oil supply, natural gas supply and all these various commodity sectors that are there, we have a real supply shortage coming up. What has helped us right now and probably for the next few months is China has slowed down a lot more than expected. So, I think this run of good luck continues maybe till the end of next year at best.

After that if Modi hasn't fixed the Indian commodity supply situation, we have a real problem in India. So, that is where I would leave it. I think the tailwind is behind India right now, probably dies out by the middle of next year and becomes a headwind by the end of next year.

Q: The evergreen big India stories are IT and pharma. You are under invested looks like in both these areas. Anything you like particularly?

A: I am not a big fan of the IT sector in India. I think it is actually a wrong classification. If you look at companies like Infosys  and Tata Consultancy Services (TCS) , you do a simple calculation. You just calculate the ratio of their cash flow to employee and plot it backwards for the last several years. It doesn't matter which company you pick up; you get the same number – about USD 4000-6000 per employee, per year, cash flow, profits.

The problem is not the number; the problem is it is flat. It hasn't changed in the last several years. So, in other words if Infosys has to grow 20 percent, all you need to do is hire 20 percent more employees. That is not an IT company; that is a labour employment agency.

So, I am not very enthusiastic about the IT sector. Having said that, I have been wrong for the last five years; these have been some of the best performing stocks in India and globally I would say. However, there is a sell by date for some stocks and some sectors.

The pharma sector is one where there is a lot more hope. However, again you have to look at companies with new business models, not just the same old formulation of the existing medicines. You have to start with somebody who can generate sales in a different way.


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India should aim $40bn gold jewellery exports by 2020: WGC

India, the world's largest gold consumer, should target five-folds increase in gold jewellery exports to USD 40 billion by 2020 from the current level of USD 8 billion, according to the World Gold Council (WGC).

The country should also put to use about 22,000 tonnes of gold lying idle with households and temples and reduce its dependence on imports in the next five years, it said.

Besides, it should aim creation of 5 million new jobs across the gold value chain - manufacturing, retailing, assaying and recycling areas, it added.

"Our vision for gold is that it should be put to work for the economy, creating jobs, developing skills, generating exports and revenues - an essential part of the financial, economic and social structure of the country," WGC said in its Vision 2020 for the country.

In the next five years, India should target to be 'jeweller to the world' and gold jewellery exports from here should increase five-fold to USD 40 billion from the current level of USD 8 billion, it said in a statement.

WGC said that the country should meet 40 percent of gold demand from its domestic stocks and the rest 60 percent through imports and mining.

That apart, India should target 75 percent of gold sold to be standardised and hallmarked in the next five years. It should also provide higher loan to value ratio for hallmarked jewellery and ensure mandatory hallmarking for pieces above a designated selling price, WGC said.

WGC also suggested the government launch 'Karigar welfare scheme' towards skill development and training of artisans and promotion of 'Gold tourism' circuit, showcasing handcrafted Indian jewellery.

"This vision is to outline objectives for the industry that address the savings habit underpinning gold demand, support value addition, increase employment opportunities and benefit the industry in an organised way without curbing supply or impacting the current account deficit," it said.

This will allow the gold trade to operate in a free and transparent manner for the benefit of millions of households and eventually lead to increased economic wealth for the nation, it added.


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