Discrimination faced by Mumbaikars...

If the housing societies in Mumbai (Bombay) are only meant for families (married couples), then the government of Maharashtra should make marriage compulsory in the state/city.
Or else the government should tell its citizens where will Unmarried, Divorcees, Bachelors, Spinsters live in the city of skyscrapers or is Bombay only for those who have families.
This is one of the greatest mental blocks of Mumbaikars, who otherwise want to bask in the FALSE HALO of Cosmopolitanism.
This disease (of not giving apartments to Bachelors, Muslims, etc on rent) is specially prevalent in housing societies where the Gujaratis, Marathis and North Indians (to some extent) abound; while the rest of the population is more or less okay with the concept.
The government of Maharashtra should take this matter seriously and devise laws to eradicate this malice ASAP, so that BOMBAY (and its suburbs) becomes free of discrimination based on Marital Status, Religion, etc. Or else the Honourable Supreme Court of India should step in, and give directions to the state or central governments -- so that the fundamental rights of its citizens enshrined in the constitution of India is not violated.

Sunday, August 02, 2015

Tata Steel Ltd: One Should Not Try To Catch a Falling Knife

Tata Steel Ltd could fall further as more and more cues are suggesting that China the world's second largest economy and the largest consumer of base metals is headed for a slowdown. 

Moreover, Narendra Modi government is yet to bring up policies which could shore up the bottomlines of the steel companies in India. 

In fact hereto, the Narendra Modi government has done precious little to stem the tide of steel-imports, from China, South Korea, Russia, etc. 

Most of the leading steel companies are reeling on deep debts. For example, as on end-March, Tata Steel’s consolidated net debt was Rs.69,000 crore. That of JSW Steel was Rs.36,000 crore. 

What is interesting in the case of JSW Ltd is that, despite consistently rising revenue and operating profit, the company has not been able to significantly cut debt. On the other hand Tata Steel, the country’s oldest in the sector, has taken timely non-cash impairment charges, sold non-core assets and even refinanced its loans.

India's steel imports had jumped around 70% to over 9 million tonnes in the year to end-March, with a surge of cheaper purchases from China accounting for about a third of the total. Imports soared 55% in April-May. 2015. After months of lobbying by its largest steelmakers, India last month raised duties on some steel imports by up to 2.5%--which is too little and too later. 

Also, the Narendra Modi government is in dilemma as regards steel imports and more duty increase could potentially harm the bottomlines of smaller producers according to a report published in the Reuters. The analysis says that:

"Steps by India to protect its large steelmakers from a flood of cheap imports could end up closing scores of small, local firms that process the metal, industry analysts and executives said. These processors currently buy imported steel at up to 20 percent below India's pricier, domestic steel, turning it into finished steel products for industrial use".

This has virtually left very options for the Modi government, to protect the larger domestic players in the steel sector. 

Meanwhile, there some news in the media that Tata Steel Ltd may be forced to further reduce assets in its Europe business, hurt by continued challenges due to adverse currency volatility and surging Chinese imports in India. Tata Steel Europe has already put its long products business on the block and is narrowing down its focus on more profitable and promising business divisions in Europe like its strip business while moving away from continuously loss-making units.

However, some smaller steel companies, who are taking new initiatives, like Rohit Ferro Tech Ltd (Rs.6.53), could see some improvements in their share prices.  
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