Citizens' Issues
Good week for sport, bad news of board officials
The focus is back on sport, coming out of court rooms and board rooms, or so it appeared
 
Good news for Indian sport in the last one week. The men's and women's teams have won the Twenty20 cricket series in Australia even as tennis star Sania Mirza claimed her first women's doubles title at the Australian Open, and Pusarla Venkata Sindu clinched the Malaysian Badminton Masters. A rare coincidence!
 
The focus is back on sport, coming out of court rooms and board rooms, or so it appeared. But the Justice Rajendra Mal Lodha Committee recommendations to cleanse Indian cricket and its administration continue to be a subject matter of intense discussion among the state associations and officials, each one trying to read and interpret the fine print to suit his personal interests.
 
Even before the detailed Lodha Committee report is fully studied by state associations, as instructed by the Board of Control for Cricket in India (BCCI), the appointment of Justice Ajit Prakash Shah as the board's ombudsman has, as suspected, is getting flooded with complaints, the initial ones on the alleged conflict of interest involving some top guns.
 
Smartly, Justice Shah lobbed the ball back into the court of the complainant, asking for the specific rules under which the allegations can be taken up for examination! 
 
The complaint is against three high-profile administrators, two of these former India cricketers, Sourav Ganguly and Vikram Rathour. The third person dragged into the conflict is board secretary Anurag Thakur. A free-lance journalist from Mumbai found a serious conflict of interest with the functioning of all three.
 
It was pointed out that Ganguly has business contacts with owners of the new franchise of the Indian Premier League (IPL), and Thakur and Rathour are said to be cousins and have business connections. The issue has apparently been raised because Thakur is the board secretary, and during his tenure as one of the principal office-bearers Rathour was appointed as a national selector.
 
Justice Shah has taken up the issue with Ganguly and the board for clarification, and even said he had not heard from Ganguly, though the former India captain insists he has sent in his reply.
 
Thakur was quick to refute the allegations, stating his business relations with Rathour have nothing to do with cricket and that their families have known each other for four decades.
 
For good measure, Thakur points to a sinister motive behind the complaints as he sees names of only a particular section of the board officials are being dragged. He also defended the board's media manager, saying he has no stake in the media company he has been linked to. What Thakur doesn't say is that the media manager was involved with a couple of former Test stars as their agent.
 
Whatever Ganguly and Thakur might say, prima facie they cannot deny their personal relations with the people they are involved with and they have to come clean. The complainant has done extensive research before filing his complaints and it is up to the ombudsman to take the call.
 
Ganguly, who is a member of the IPL Governing Council, is a co-owner of Indian Super League football club Atletico de Kolkata along with well-known businessmen. Nothing wrong with the arrangement till one of the tycoons bought IPL's new Pune-based franchise. It would be interesting to see how Ganguly explains it away logically with legalese thrown in.
 
In Thakur's case it is more personal. He was joint secretary when Rathour was appointed as a national selector and he was secretary when the former India opening batsman got the extension, though Rathour qualifies by virtue of being a former Test player.
 
The crux of the matter is not whether Rathour deserves to be a selector, the complainant brought into focus Rathour citizenship, pointing out that he is a British and carries that country's passport. 
 
In the case of the BCCI's media manager, the allegation is that a family member of his is taking care of his business interests. Here it must be mentioned that he also fits in with the media job as he had worked with electronic media for a few years before getting into event management. His proximity to some top players is all too wellknown. In the past, there were disparaging whispers about a board's media adviser being a columnist.
 
Thakur has also obliquely stated that the appointment of ombudsman has given rise to some people to make false allegations. Eventually, he has to explain his position and it is for the ombudsman to decide whether there is any conflict of interest in Ganguly and Thakur-Rathour business dealings.
 
The Cricket Association of Bengal (CAB), of which Ganguly is president, is the first state unit to officially come out with objections to 10 of the 21 recommendations of the Lodha Committee!
 
Good week for sport, bad news of board officials.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

User

Big gainers when the market declined
Over the last 12 months, the Sensex has been down by about 14.8%. But a handful of stocks recorded massive gains. Which were these stocks?
 
Last January, investors expected the market to put in another year of strong rally after the sharp rise they enjoyed in 2014, following the installation of a new government at the Centre in mid-2014. The S&P BSE Sensex was above 29,000 in January 2015 and seemed to be headed higher. Investors were expecting a “reformist” budget, the second one by the Narendra Modi government. Actually, it was first one that the government had time to plan. After all, the July 2014 budget left the government with very little time to prepare. The budget turned out to be an anti-climax. The Sensex crossed 30,000 but that was the peak. On 20th January 2016, it had touched a low of 23,839, a peak to trough decline of 20.6%. 
 
In this decline, a lot of quality stocks have gone down more than Sensex. But there are some stocks that have bucked the trend. They have doubled, trebled and one has even gone up fivefold. Which are these stocks? We trolled our database to find out the biggest gainers. To eliminate the many thinly-traded stocks that are rigged with impunity, we limited our search to companies, which have market capitalisation of at least Rs1,000 crore and whose shares are liquid, which we have defined as trading 2,000 shares a day on 90% of trading days. Based on this database, we looked up the stocks that did the best. Here is a table that lists the result of this exercise
 
 
The biggest gainer is Kellton Tech Solutions, followed by Rajesh Exports. Kellton is a small CMMi Level 3 and ISO 9001:2008 certified global IT services organisation, headquartered in Hyderabad with development centres in the US and India. Its financials are improving and it has acquired a US software company three days ago. Rajesh Exports is a controversial company, whose price movement is unrelated to its fundamentals.
 
Indeed, some of these stocks are “operator-driven”, meaning they are jacked up only with the intention of dumping them at a later date. But certainly a company like Kwality or Nilkamal Plastics has a solid business model and were undervalued in January given their growth prospects. The flavour of the year was textile stocks. That is the reason why a company like Sangam India did extremely well, even though its growth has been modest. One of the big gainers is High Ground Enterprises which is into Engineering Procurement and Construction Management (EPCM) operating in oil & gas, water resource management, roads, telecom, solid waste management, fire and safety etc. In 2014-15 it entered into the business of third party certification, completing work for Indian Oil petrol pumps across 1000 cities and towns in India. Among its clients are Mumbai International Airport Authority, Indian Oil, Raymond, Essar Ports,  etc. Curiously, the company is also getting into visual media, focused on content development, technical media services and post-production. It has set up a boutique digital post-production/technical media facility to cater to domestic and export market. It is difficult to say how much of this genuine. 
 
Morepen Labs which was drowning in huge debt, has literally has come back from the dead. According to the company, Morepen is the leading supplier of Loratadine worldwide including a 90% share of the US market. It is also the largest manufacturer of Montelukast and its intermediates and is an important player in selling its patented form of Atorvastatin Amorphous. In the September quarter, it reported a net profit of Rs3.22 crore which was 10 times that of September 2014.
 
Another company that recorded a fantastic rise in net profit was Nilkamal Plastics. In September 2015, its net profit was Rs25.74 crore compared to Rs6.84 crore the same quarter a year ago. While Nilkamal was a profit-making company that has done even better thanks to lower input costs and wider product range, a big gainer in 2015 was a basket case. One of the most spectacular turnarounds of recent times happened in case of SpiceJet, where Ajay Singh returned at the helm with bag of financial engineering tricks that led to Rs72 crore profit for the September quarter of 2015 against a Rs310 crore loss in the same period a year before. Among the big gainers was Kwality, which was up 191%. What is not clear is as to how the shares of Kwality, whose turnover and profits merely inched up in each of the quarters last year, tripled over the year. Maybe this year will provide a clue. 

User

Nifty, Sensex in an uptrend – Weekly closing report
Nifty will weaken on a close below 7,400
 
We had mentioned in last week’s closing report that Nifty, Sensex would be in rally mode and that Nifty would rise this week subject to dips. The major indices rallied to record gains for the week. The weekly trends of the major indices are given in the table below:
 
 
On Monday, positive global indices, coupled with firm crude oil prices and a stable rupee, supported the upward movement of the Indian equity markets. Initially, the bellwether indices opened on a positive note in sync with their Asian peers. Even the firm closing of the domestic and the US markets last week supported the upward trajectory. Moreover, the short-covering rally was supported by firm oil prices and a stable rupee which gained eight paise at the opening, starting the week at 67.55 to a US dollar from its previous close of 67.63. Further, expectations of an additional stimulus from the ECB (European Central Bank) by March this year boosted investors’ confidence. However, gains were capped by profit bookings and caution over the upcoming rate setting meeting of the FOMC (Federal Open Market Committee) scheduled for January 27-28. The FOMC assumes significance as higher interest rates in the US are expected to lead away FPIs (Foreign Portfolio Investors) from emerging markets such as India. In addition, selling pressure was witnessed on account of the F&O (Futures and Options) expiry slated for Thursday. The S&P BSE market breadth favoured the bulls with an advance decline ratio of nearly 2:1. There were 1,673 advances and 900 declines.
 
On Wednesday, caution over the upcoming rate-setting meeting of the US Fed's FOMC (Federal Open Market Committee) scheduled for January 27-28, coupled with a weak rupee dented investors' sentiments leading to major indices in the Indian equity markets closing the day's trade flat. Initially, the bellwether indices opened on a flat-to-positive note in sync with their Asian peers and firm closing of the domestic markets on Monday. Moreover, short-coverings were supported by firm oil prices and expectations of healthy roll-over figures from the F&O (Futures and Options) expiry slated for Thursday. The weakness in rupee subdued sentiments too. The rupee value weakened to 68-level against a US dollar during intra-day trade. The weakness in the rupee value indicates the massive outflow of foreign funds from the Indian equity and debt markets. On Monday, the foreign institutional investors (FIIs) were net sellers. According to data with stock exchanges, FIIs divested Rs91.15 crore.
 
Hopes of a monetary policy easing, coupled with healthy roll-over from derivatives expiry and status quo in US interest rates, slightly buoyed the Indian equity markets on Thursday. The headline indices were trading in a very narrow range, as gains made on the account of positive international sentiments were erased by caution over the sliding value of rupee and the upcoming Reserve Bank of India's (RBI's) monetary policy review. Initially, the bellwether indices opened on a flat note, ignoring positive cues from their Asian peers, firm crude oil prices and the US Fed's decision to maintain status quo in interest rates. However, the major indices closed with marginal losses.
 
On Friday, hopes of an interest rate cut, coupled with a strengthening rupee and positive global cues, buoyed the Indian equity markets. Initially, the Indian bellwether indices opened on a positive note, in sync with their Asian peers, firm crude oil prices and Bank of Japan's (BoJ) decision to maintain its stimulus program. Markets started their upward climb after initial consolidation from Thursday's close, when both bellwether had indices closed flat. In addition, short-covering and value buying at lower levels pushed up prices. Investors were seen hopeful of an interest rate cut during the upcoming monetary policy review by the Reserve Bank of India (RBI) which is slated for February 2. Expectations were backed up by Bank of Japan's decision to go in for a negative interest rate to support the Japanese economy. BoJ's decision came a day after the US Fed maintained its status quo on key lending rates. Recently, the European Central Bank (ECB) indicated more stimulus measures which will be announced in March. Besides, strengthening of rupee's value soothed investors' nerves. The rupee opened at 68.12 against a US dollar from Thursday's close at 68.23 to a greenback.
 
With favourable macroeconomic cues, the major indices of the Indian equity markets are likely to be on an upward trajectory for a while. Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

User

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine)