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SumanSpeaks Independent Capital Markets & Geopolitical Intelligence POLITICAL ECONOMY | PART 1: THE TELECOM TEST The Sangh’s Costliest Blunder: Keeping Narendra Modi in the Chair After Demonetisation and a Trail of U-Turns Two private giants, one state-propped survivor, roughly ₹3.22 lakh crore in announced BSNL revival and support packages (spectrum allocation included), and ₹1.41 lakh crore of AGR dues still on the books: telecom shows what happens when one man’s brand becomes the party’s only policy. This is an argument against Narendra Modi, not against the BJP. SYNOPSIS India’s telecom market has narrowed from a messy but real plurality into two dominant private networks, one weak private survivor kept alive by government equity, and a public operator that has needed about ₹3.22 lakh crore in announced support packages and spectrum allocations, not all of it cash. The 2010 spectrum auctions that started the debt spiral were a UPA-era event, and we say so plainly. But a ...
WINNING STROKES: THINK DIFFERENT
Vijay Shanti Builders Ltd moved up by more than 8% before closing at Rs.17.05. The Paid Members were strongly recommended to buy the scrip in view of the company doing well. I have long back placed a report at: www.sumanspeaksplus.blogspot.com. The stock needs to cross Rs.20.50 to resume the next level of uptrend and complete the  "W" pattern. I shall post the chart in http://sumanspeakspremiumservices.blogspot.in/--this blog will remain open till 8 p.m. tomorrow for the free members (on request the time has been extended). In this blog they will get: Short Term News, Insider Information, Chartical Interferences, Positional Calls, Market Rumours, F & O Calls, Daily Trading Calls, Brokerage Calls, etc) from time to time, even if they miss my mail due to some reasons. The daily inputs and calls would be uploaded here, for the benefits of the Paid Members or those who have joined my brokerage house or have opened an account with a view to invest through my brokerage house. 
Adani Enterprise Ltd moved to Rs.201.90 before closing at Rs.198.60, up 2.08%. The fact that the scrip closed near the day's high is good for the shareholders. I am expecting the scrip to cross Rs.210, within a couple of days. 
Reliance Power Ltd today moved to Rs.104.95, and then closed at Rs.104.35. Similarly, KSK Energy Ventures Ltd closed at Rs.61.25, near the day's high. 
Meanwhile, Planning Commission deputy chairman, Montek Singh Ahluwalia believes that the outstanding debt of power distribution companies (discoms) needs to be restructured. He said, "Half of the outstanding SEB debt will be taken over by the state government and half wil be helf by bank guarantee by state government". The Centre and States will not be able to achieve high growth and promote financial inclusion without addressing the problem of mounting losses of the power sector which are estimated at Rs.70, 000 Cr per annum, the Planning Commission said. The Commission had invited the state power ministers to discus to deal with various issues of energy sector. Moreover, a decade after the Center stepped in to rescue debt-stressed electricty distribution companies, the power ministry has prepared another bail out package for these entities whose combined debt has reached an unmanageable Rs.2 lakhk crore. While these discoms, hamstrung by up to a 40% gap between cost nd revenue, have already defaulted in payments to power generators, they are facing teh specter of defaulting on loan repayments to too.  "A Cabinet note (on discoms' debt restructuring) has ben prepared. We are taking views of the ministries and departments concerned---the finance ministry and the Planning Commission---on this, "Union Power Secretary, P Uma SHankar said. Also, there were reports in the media that, Union Power Ministewr Sushil Kumar Shinde, close on the heels of hike in power tariffs in many states advocated rising electricity tariff in small dozes every six months to spare consumers of one-time sharp hikes. Shinde, said, hike in electricity bill was inevitable due to rise in cost of fuel used for generating power. "We have to increse the tariff..Fuel prices have increased....I feel every six months there should be a rise in power tariffs, so that the common man does not fee the heat when they are revised after a gap of seven years", Shinde said. Another positive news for the power sector is that Adani Power and Tata Power Co Ltd have approached the Central Electricity Regularatory Commission, India's top power sector regulator, to consider, an increase in power tariffs. "Adani Power and Tata Power have filled their petitions. The hearing is on 19th Jul, " sid Pramod Deo, Chairman, CERC. Tata Power, has sought regulatory interventions. The petitions seeking an increase in tariff for imported coal based power project were filed after customers for the electricity generated from these two projects both located in Mundra in Gujarat, declined to pay high rates. Therefore, with so much developments going on here, I think this is the best time to enter the sector. 

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