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I have put a brief report on Development Credit Bank Ltd, at www.sumanspeaksplus.blogspot.com, based on the available data.
Today my recommended McNally Bharat Ltd (last week's Sunday Report Recommendation) touched almost the 2nd target of Rs.130. The stock was recommended around Rs.118.
The markets are expected to move up massively in the coming days and those who are predicting, a fall below 4700-4750 ranges will have mud on their faces. There is as such no such (too much) effect of the crisis in the US and Europe, in India; as it is amply seen in the inflation figures. India and China has performed better than many of the European Nations inspite of a Propaganda of "Global Crisis" spreading to Asia, since the last 3 years after the "Lehman Brothers Crashed in the Atlantic Ocean". There is as such no visible economic crisis in India and China, in fact both the nations are bent on slowing down the overheated economies. The India economy is more stabler than the China and Japan which could get a little affected due to slowdown in the Europe and the US, but India is as strong as a lion, with a roaring demand pull.
The Western Propaganda of a massive slow down in the Indian and Chinese economies have already turned out to be a BIG HOAX. And all those proponents of, "Coupling Theory" have now trying hard to find the next couple to support their moronic gospels. The domestic demands of Indian markets, are already been so strong that some of the FMCG companies are contemplating a price hike of thier commodities before "Deepavali". The Indian economy slowed not due to global fall-out but to control inflation. Moreover, with the US and Europe doing badly, the money is expected to find its place in the Indian shores in the coming days---whether it would flow in the Dalal Street or debt market is a matter of conjecture. Only thing needed is have an effective government and removal of the clowns who are occupying the chairs of RBI (except may be Dr.Subir Gokarn).
The Western Propaganda of a massive slow down in the Indian and Chinese economies have already turned out to be a BIG HOAX. And all those proponents of, "Coupling Theory" have now trying hard to find the next couple to support their moronic gospels. The domestic demands of Indian markets, are already been so strong that some of the FMCG companies are contemplating a price hike of thier commodities before "Deepavali". The Indian economy slowed not due to global fall-out but to control inflation. Moreover, with the US and Europe doing badly, the money is expected to find its place in the Indian shores in the coming days---whether it would flow in the Dalal Street or debt market is a matter of conjecture. Only thing needed is have an effective government and removal of the clowns who are occupying the chairs of RBI (except may be Dr.Subir Gokarn).
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
"...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
Just look how farce this preamble has become considering the RBI's recent action; (i) Mindless increase of interest rates, making the SME and BOT Project executors almost unviable--raising unemployment and hitting hard the infrastructure sector. It seems there is a policy paralysis from the GOI (ii) Where is the monetary stability in India when there is so much wild swings in the INR against the USD? Such devaluation of the INR would help the net exporting companies (or who get lot of revenues from the export market--like IT, Textiles, etc), but since India imports 70% of its energy needs from the foreign shores, it is imperative that the INR does not depreciate too much against the USD--but still now no action from those clowns in the currency market too. Is it doing a great favour to India by slowing down its growth momentum too much..? If the demand is strong then instead of going in for mindless rate hikes (and choking supply), the government should have relaxed the import norms, which could have also helped to some extent in arresting too much devaluation of the INR against the USD. But then as mentioned earlier, we are having three jokers in the form of PMO, FMO and the RBI--while the circus goes on....!!
The job of the Reserve Bank of India (RBI) is to deliver low and stable inflation: to deliver y-o-y CPI inflation of between 4 to 5 percent.
They have failed in this task. From February 2006 onwards, in every single month, y-o-y CPI inflation has exceeded 5 percent. This is an important time for introspection at RBI and outside it. What have we done wrong, in the structuring of RBI, which has got us into this mess? The RBI has absolutely no say on the world price of steel. In that sense, the prices of tradeables are beyond the control of RBI. A tradeable is a commodity which can be transported across the world at relatively low cost and then traded (bought/sold). Non-tradeables are those items like cement (which are hard to transport) or haircuts (which are almost impossible to transport) or may be services offered in brothels. Huh!!
When RBI raises the interest rate, more capital comes into India (mostly in the form of debt capital), which tends to give an INR appreciation (against the USD), thus making tradeables cheaper. Thus, an RBI rate hike does impact upon the domestic price of tradeables.
RBI is an agency of the GOI who provides it the ultimate resources. In return, the agency should be held accountable. Delivering low and stable inflation is the accountability mechanism. But what the GOI has done is to give an extension to the tenure of the present RBI governor making a mockery of the very essence of democracy. Shame upon the FMO and PMO who presided over such naked abnormality and who worships incompetence.
The job of the Reserve Bank of India (RBI) is to deliver low and stable inflation: to deliver y-o-y CPI inflation of between 4 to 5 percent.
They have failed in this task. From February 2006 onwards, in every single month, y-o-y CPI inflation has exceeded 5 percent. This is an important time for introspection at RBI and outside it. What have we done wrong, in the structuring of RBI, which has got us into this mess? The RBI has absolutely no say on the world price of steel. In that sense, the prices of tradeables are beyond the control of RBI. A tradeable is a commodity which can be transported across the world at relatively low cost and then traded (bought/sold). Non-tradeables are those items like cement (which are hard to transport) or haircuts (which are almost impossible to transport) or may be services offered in brothels. Huh!!
When RBI raises the interest rate, more capital comes into India (mostly in the form of debt capital), which tends to give an INR appreciation (against the USD), thus making tradeables cheaper. Thus, an RBI rate hike does impact upon the domestic price of tradeables.
RBI is an agency of the GOI who provides it the ultimate resources. In return, the agency should be held accountable. Delivering low and stable inflation is the accountability mechanism. But what the GOI has done is to give an extension to the tenure of the present RBI governor making a mockery of the very essence of democracy. Shame upon the FMO and PMO who presided over such naked abnormality and who worships incompetence.
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