SumanSpeaks: The Information Super Highway

Rolta India Ltd: Breaks Out Rolta India Limited, a leading provider of innovative IT solutions for many vertical segments, including federal and state governments, defense and homeland security, this month announced the signing of definitive agreements for establishing a joint venture with Meprolight, a leading international electro-optics company.  To be owned 51% by Rolta and 49% by Meprolight, the JV will take advantage of technology transfer from Meprolight for manufacturing and developing state-of-the-art optronics devices based on image intensifier and thermal imaging technologies in India, for addressing the growing demand for night fighting capabilities by the Indian defence and security forces. Meanwhile, there were recent media reports that, Indian Institute of Information Technology (IIIT) will be coming to Pune. Guardian minister Girish Bapat announced the decision which put an end to the long wait of having one of the 20 proposed IIITs in the Mumbai-Pune co...

WINNING STROKES: THINK DIFFERENT The Nifty as expected turned bullish since yesterday. The resistance of 8390, was covered today, as FIIs started buying again, amists the rumours that there is a mutual ceasefire, agreement between the government and the FIIs in matters of "TAX TERRORISM". It was basically due to this episode and the NDA's government's directionless economic policies, which spooked the FIIs. However, with Narendra Modi, returning to the Indian soil, after burning a hole in the economic map of India; hopes are being whipped up, that he would now concentrate on the domestic reforms more. Narendra Modi is a rustic-hard-working Indian. However, he neither has the intelligence nor has much idea how to run the economic landscape of this country. His speeches are not only substandard but sometimes laced with only self-praise. His finance minister, Mr.Arun Jaitley, is equally inapt and amateur. The markets moved up due to some unrealistic expectations fr...

Indian banks may offer interest on gold deposits of above 30 grams Indians are fond of gold Mumbai, May 19, 2015: India could allow individuals deposit a minimum of 30 grams of gold with banks in return for interest payments to help monetise large quantities of the metal lying with households, a step that is aimed at cutting expensive imports. Trying to mobilise 20,000 tonnes of unproductive gold owned by Indian households into cash, Finance Minister Arun Jaitley in his budget speech on 28 February unveiled the gold monetisation scheme. Banks could treat gold deposits as part of their cash reserve ratio (CRR) or statutory liquidity ratio (SLR), the finance ministry said in its guidelines released on Tuesday to seek opinions about its gold monetisation scheme. It said the stakeholders could respond to its suggestions by 2 June. The SLR is the minimum amount of bonds that banks must have, while the CRR is the share of deposits they have to compulsory keep with the cen...

Gitanjali Gems Ltd: Forward March has Started Recently there were media reports that working capital loans of Rs.4,300 crore given to Gitanjali Gems Ltd (Rs.42.25) have been restructured under the joint lenders’ forum (JLF)  mechanism.  The company announced on April 21 that it is consolidating the business at group level to improve cash flows and reduce costs in various activities such as sourcing, manufacturing, distribution, exporting and retailing. It proposed the merger of three of its subsidiaries Asmi Jewellery India and Spectrum Jewellery with Nakshatra Brands and also the merger of Gitanjali Jewellery Retail and Gitanjali Lifestyle with GILI India. Gitanjali has also sought rescheduling its repayment of ECB loans with IDBI, with the RBI providing in-principle approval for the rescheduling. The gems and jewellery sector has been under stress owing to a rise in customs duty, RBI-imposed restrictions on gold imports and a volatile rupee.  “Gitan...

Karuturi Global Ltd: Steady Upmove expected Banglore-based Karuturi Global Ltd (KGL) is India's largest rose exporter. Recently, it has been taking various steps to reduce its debts including selling off 53% stake in Mumbai-based Florista India Pvt Ltd, which operates a chain of floral designing boutiques across India. Founded in 2007, Florista India offers roses, orchids, gerberas and exotic flowers for anniversary, birthday, congratulations, get well, love and affection, miss you, and new baby occasions. The scrip of KGL seems to be on a steady uptrend since the last few days, after a long consolidation phase. The latest Book value of the shares of the company is Rs.12.04. The P/E of Karutuuri Global Ltd (Rs.1.95) is 14.54 against the industry average of 33.94, giving it enough room for appreciation with the current set of fundamentals in place.  The next logical target for the scrip is Rs.2.25.

Breaking It Down: MAT = Tax Terrorism [ Editor : Last month there were media reports that the  Indian Finance Minister Mr.Arun Jaitley, rather jocundly said that the opposite of tax terror cannot be a "Tax Haven". Pointing finger to his critics,  he asserted that Modi government would not let go off what it sees as a "Legitimate Tax Demand".  Mr Jaitley was infact referring to the tax  notices served on FIIs and FPIs  to extract Rs.40,000 crore from them (after they lost an appeal at the Authority for Advance Rulings (AAR) against levy of 20% MAT on capital gains they made in years through March 31)  under a tortuous law called Minimum Alternate Tax (MAT).  The Indian FM was probably unaware as  how this sounded when Indian IT-department is already infamous for arbitrariness. MAT brings out this infuriating arbitrariness quite succinctly. This is a simple example, of Mr.Arun Jaitely amateurish gibes, a person who is in charge of mana...

'What are you doing to accelerate growth?' asks P Chidambaram [ Editor : The Narendra Modi era of duplicity and U-turns is perhaps over---Mr.P Chidambarm is the man of the moment. Under his powerful shoulders, India performed well in the past and now it is time to see him in the chair of the PM, of this great country. This might also somewhat cool down the controversies surrounding Modi Vs Rahul debate] It has been a year of promises but little implementation, says former Finance Minister P Chidambaram, asking hard questions of the Modi government in a no-holds-barred interview. P Chidambaram has been India’s longest serving Minister of Finance (seven-and-a-half years, across three governments). In fact, the senior Congress leader has, in different capacities, been involved in shaping the Indian economy for more than three decades. He has also had a turbulent three years as Minister of Home Affairs (2009-12), during which he had to contend with the Telangana movemen...

Exports fall for 5th month in a row [ Editor : Exports are falling, FIIs are selling continuously (On 15-May-2015, also FIIs were net sellers of Rs.38.31 cr) , Narendra Modi is taking of land acquisition for Chinese companies in Gujarat, to participate in "Make in India" campaign and Steel companies are bleeding, while Indian PM's bonhomie with the Chinese continues. What a strange coincidence? The INC should now aggressively pitch, Mr.P Chidambaram, as their PM candidate for the next Lok Sabha elections--this is the opportune moment]  Photo : Money Control NEW DELHI, May 16, 2015: India's exports shrank for the fifth month in a row, falling 14% to $22 billion in April due to a sharp decline in the value of petroleum products and gems and jewellery.  Crude oil imports too fell on account of softer international prices, resulting in a 7.5% decrease in imports to $33 billion. But, a more rapid fall in petroleum exports resulted in the trade deficit w...

Ab ki baar UPA sarkar. [ Editor : The present condition of Narendra Modi quotient is like of Dr.Datson's Labs Ltd which moved from around Rs.7-8 to Rs.21.50 in no time and is again near Rs.7-8 (CMP--Rs.7.87). Too much advertised products ends up in this way only.  Moreover talking of the Narendra Modi government we find that INR has depreciated by more  than 8.5% in the last one year. Now while the inflation has fallen due to low crude oil and soft commodity prices, the GDP growth is absent; FIIs are exiting and HSBC has already downgraded India. Meanwhile the management of Tata Steel Ltd would probably write off Rs.5000 crore from their books; as Chinese dumping continues.   Narendra Modi instead of saving domestic Steel giant is busy with Chinese Bonhomie.  The Gems and Jewelry sector, one of the major foreign exchange earners, is in shambles.  The same is with the SOYA oil sector. This brings us to the moot question: What have we achieved during the ...

FIR lodged against NGO for issuing fake I-cards [ Editor : The misleading identity cards were issued in the names of several underworld dons, under the banner of All India Labour Welfare Sewa Sangh (AILWSS) . Not only that Manish Choudhury has taken money from several of my acquaintances on some pretext or the other; only to vanish in the dark. His cell phone is not reachable now. If he continues to evade me, I will post his phone number here in this blog. If anyone has any information about this person, please do send me a mail] Tuesday, May 05, 2015: In a significant development following unearthing of a fake I-card racket, an FIR has been registered at the Dindoshi police station against an NGO, All India Labour Welfare Sewa Sangh (AILWSS), for issuing misleading identity cards and compromising national security. The ADC – in its report on February 7 under the headline ‘Dons get ID Cards as CID officers, activists’ had highlighted about the Mumbai-based NGO, National An...

MSCI Small Cap Index adds 51 securities and deletes 8 Mumbai | May 13, 2015: MSCI Inc on Tuesday announced the results of the May 2015 Semi‐Annual Index Review for the MSCI Equity Indexes – including the MSCI Global Standard, MSCI Global Small Cap and MSCI Micro Cap Indexes.  All changes will be implemented as of the close of May 29, 2015. MSCI Small Cap Index will add Aarti Industries, Ajanta Pharma, Alstom T&D, Asahi India, Blue Dart, Bombay Burmah, Capital First, Century Ply, Cera, Crisil, Crompton, Dalmia Bharat, Dhanuka Agri, Edelweiss, Eveready, Future Retail, HCC, Hitachi, Indoco, Ingersoll, Isgec, Kalpataru, Kansai, Kitex Garments, KRBL, L&T Fin, Motilal Oswal, Marico Kaya, Muthoot, Orient Cem, Persistent, PTC India, Ratnamani Metals, Reliance Infra, Repco Home, Rolta, Schneider, Sharda Crop, Shipla Medicare, Suven Life, Tata Comm, Tata Elxsi, Tata Investment, Texmaco Rail, Timken, Union Bank, Viniti Organics, Wabco, Welspun Ind and Zensar.  Bajaj...

Narendra Modi is now a Sell!! Before, penning further, let me assure you, that I am neither a friend nor a foe of Narendra Modi.  I am just criticizing the policies of his government, so that the BJP leadership or the RSS can take corrective measures, for improving the Indian Economy.  That Narendra Modi is a novice in central politics has been proved long back by his countless loose talks, including his much publicized "Broom Expedition".   Als o I mentioned a number of times earlier that he has no interest in giving good economy, but is more will ing to prepare a good vote bank for the BJP . But then , all Indians cannot be fooled all the time. He perhaps  either does not understand the economy or does not take suggestions from the expert committe e . He is now bent on showing low inflation, thinking that RBI will cut rate. But, rate cut will not spur demand, as the government has not taken much pro-active steps to  either revi...

ICICI Bank Chairman KV Kamath appointed BRICS bank president [ Editor : Now you must have understood the real reasons for Mr.Kamath, saying so much positive about the otherwise discredited Narendra Modi government]   May 11, 2015: ICICI Bank Chairman K V Kamath has been appointed as the president of the $50 billion New Development Bank being set up by Eminent banker K V Kamath was today appointed as head of the USD 50 billion New Development Bank being set up by the five emerging economies of BRICS grouping. Kamath will have a five year term of the bank, which is likely to be operationalised within one year, Finance Secretary Rajiv Mehrishi said. Kamath is the Chairman of the India’s largest private sector bank ICICI. Leaders of the emerging economies of Brazil, Russia, India, China and South Africa (BRICS) had last year reached an agreement to establish the New Development Bank, with its headquarters in Shanghai. As per the agreement, India got the right to nominate t...

Steel imports up 28% at .29 bn in FY15: Govt [ Editor : It is irony that the Narendra Modi government is promoting the overseas steel companies instead of supporting the domestic ones. The Modi government probably thinks that putting import curbs might fuel inflation; but I strongly feel that this is an unethical method to quell the inflation tiger. Also, we are yet to know whether, the government has any clandestine understanding (deal) with the steel importers or not]   Photo : International Business Times May 08, 2015:  India's steel imports rose 28 percent to USD 16.29 billion (about Rs 1.04 lakh crore) last fiscal as the country became a net importer of the metal, Parliament was informed on Friday.  India, the world's fourth-largest steel producer, had imported steel worth USD 12.71 billion in 2013-14, data presented by the Minister of State (Independent Charge) Commerce and Industry Nirmala Sitharaman in the Lok Sabha showed. India's out...

Rolta India forms JV with Israeli firm Meprolight to make optronics devices Mumbai  May 4, 2015: Rolta India Limited, a provider of innovative IT solutions for various industry segments, has signed definitive agreement to establish a joint venture with Meprolight, the Israel-based electro-optics company, for manufacturing and developing state-of-the-art optronics devices based on image intensifier and thermal imaging technologies in India. The JV, to be owned 51% by Rolta and 49% by Meprolight, will take advantage of technology transfer from Meprolight for manufacturing optronics devices, which can address the growing demand for night fighting capabilities by the Indian defence and security forces. This JV will become operational on receipt of requisite approvals from respective Governments and leverage a broad spectrum of cutting-edge technologies, in the area of optronics from Meprolight, and Rolta's leadership position in the India, to address large requirements of...