Happy 2016!!
It’s time, once again, for the much-awaited annual feature that showcases the enormous wealth generated by the top companies which may seems incredible, when we look back. The benchmark indices, viz., the Nifty 50 and the S&P BSE Sensex, delivered a return of 10%-11% annualised over the past decade ended 31 October 2015. However, this is inconsequential when compared with the wealth generated by the top companies on our wealth creators’ list. Who would have known that had you invested Rs1 lakh in the air-cooler manufacturer, Symphony, for example, you would have been sitting on Rs8 crore today, a compounded rate of 95%! Investing in any of the top 100 companies would have earned you a return of 27% annualised, at least. Which were these companies? Turn to our Cover Story to find out.
 
Picking the top wealth creators of the next decade is, obviously, not easy. You need to follow a process and keep an eye open for unsystemic risks. High debt is one such risk.R Balakrishnan writes on why investors need to be wary of a company’s debt, before investing.
 
Generating wealth requires a lot of patience, hard work and tonnes of luck. Many think it’s much easier. They fall for financial scams. Apart from the ‘get-rich-quick’ schemes, many even fall prey to job scams or vishing scams, as Sucheta highlights in her column. But even more shocking is that fact that the victims include educated individuals like doctors and IAS officers. All this, despite crores of rupees being spent on financial literacy, points out Sucheta.
 
The coming year marks the 10th anniversary Moneylife. Fittingly, we have a landmark judgement, from the Supreme Court (SC), making the Reserve Bank of India (RBI) more transparent through the Right to Information (RTI) Act. The Court mentions that RBI is supposed to uphold public interest and not the interest of individual banks when dealing with RTI queries. Sucheta, in Different Strokes, explains the enormous significance of this judgement. We hope to start the New Year with a new initiative for stock-lovers. Until then, a very Happy New Year!
 

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The short Nifty, Sensex rally may have ended – Tuesday closing report
Nifty will turn bearish again, if it goes below 7,740
 
We had mentioned in Monday’s closing report that Nifty, Sensex will push higher and that while the uptrend is intact, Nifty may meet with resistance at around 7,880. The Indian equity markets were subdued on Tuesday mainly on account of political turmoil and the major indices closed lower by upto 0.62% over Monday’s close. The trends in the major indices in Tuesday’s trading are given in the table below:
 
 
The bellwether indices of the Indian equity markets opened on a flat note in sync with their Asian peers. Nevertheless, both the key indices rose encouraged by the passage of Bankruptcy Code. However, after 2 pm they soon ceded their gains, as profit bookings, parliamentary logjam and upcoming US macro-data subdued sentiments. State-run Canara Bank on Tuesday said it will raise Rs.2,400 crore through bonds to fund business expansion. The fund collected is intended to support asset growth during 2015-16 and also maintain a healthy level of Capital to Risk Weighted Assets Ratio (CRAR). Shares of Canara Bank closed at Rs239.45, down 1.66% on the BSE.
 
Industrialist Anil Ambani-led Reliance Communications (RCOM) on Tuesday said it has initiated talks with the promoters of Aircel to combine the wireless business of the two companies, with synergies in investments and returns. A pact for 90-day exclusive talks has been initiated with Aircel's majority owner, Malaysia's Maxis Communications, and Sindya Securities and Investments for the potential merger, RCOM said in a statement. "The potential combination will exclude RCOM's towers and optical fibre infrastructure, for which RCOM is proceeding with an asset sale," said the statement. "The discussions are non-binding in nature. Any transaction will be subject to due diligence, definitive documentation and regulatory, shareholders' and other third party approvals. Hence, there is no certainty that any transaction will result." Last month, RCOM entered a major pact to acquire the Indian business of Russia's Sistema, which operates under the 'MTS' brand, in a unique stock-cum-spectrum-fee payment deal. RCOM shares closed at Rs85.70, up 2.39% on the BSE.
 
Glenmark Pharmaceuticals has received the final nod from the US health regulator for a generic version of anti-bacterial drug Zyvox. "Glenmark Pharmaceuticals Inc, USA, has been granted final approval by the US Food & Drug Administration (USFDA) for the Linezolid tablets, 600 mg," Glenmark Pharmaceuticals said in a statement. The product is the therapeutic equivalent of Zyvox tablets, 600 mg of Pharmacia and Upjohn Company, a subsidiary of Pfizer, it added. According to IMS Health sales data for the 12 months to October 2015, Zyvox tablets, 600 mg, achieved annual sales of around USD 447.6 million, Glenmark said.  Zyvox is an anti-bacterial drug marked for adults and children for treatment of infections such as pneumonia, complicated skin and skin structure infections, including diabetic foot infections. With today's approval, the company's current portfolio consists of 104 products authorised for distribution in the US marketplace and 62 abbreviated new drug applications (ANDA) pending approval with USFDA. Glenmark shares closed at Rs938.05, up 1.15% on the BSE. 
 
China's top leadership has announced an overarching strategy to lead the economy's ongoing transition, the media reported on Tuesday. President Xi Jinping said the country's emphasis next year will be on supply-side reform, or a package of supply-side policies to release new demand and boost new productivity, the Global Times reported. He was speaking on Monday at the conclusion of the Central Economic Work Conference, which was held along with the Central Urban Work Conference. Economists said this means that China will no longer seek to fuel economic growth solely by using fiscal and monetary measures to boost capital investment, consumption and exports. Instead, the government will be more focused on devising policies which, from the supply side, are aimed at helping the industries it wants to support. Outdated businesses will also be phased out.
 
Japan's economy, the third largest in the world, would grow about 1.7% in real terms in fiscal 2016 starting April, according to Tuesday's government forecast. Japan's gross domestic product, in nominal terms, will likely expand around 3.1% in the next fiscal year to around $4.3 trillion, Xinhua cited the forecast, led by recovering consumer spending and capital investment, as reporting on Tuesday. The projected GDP level will surpass the level before the financial crisis triggered by the collapse of investment bank Lehman Brothers Holdings Inc. and will be the highest level in 19 years since fiscal 1997, according to the report. The planned consumption tax hike from 8% to 10% in April 2017 would help the overall growth increase by around 0.3% due to demand increase ahead of the tax hike. The recently compiled extra budget for the improvement of welfare services and farm sector's competitiveness would also boost the country's GDP by about 0.4% in fiscal 2016, according to the projection. However, the government forecast was more optimistic than that of the Bank of Japan, the central bank here, which estimated real GDP growth of 1.4% for the reporting fiscal year. Affected by the declining crude oil prices, the government also said that inflation rate would rise to 1.2% in fiscal 2016, a read short of the two percent target raised by the central bank to fight against Japan's prolonged deflation. The government said that the Japanese economy is expected to grow 1.2% in the current fiscal year, downgraded from a previous estimate of 1.5%. The government also warned that capital outflows from emerging markets would be downside risks after the US Federal Reserve has decided to raise interest rates.
 
The top gainers and top losers of the major indices are given in the table below:
 
The closing values of the major Asian indices are given in the table below:
 

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Delhi observes third Car-Free Day
Continuing its efforts to curb air pollution in the national capital, the city government on Tuesday organised the third Car-Free Day in Delhi on the Vikas Marg stretch in east Delhi's Laxmi Nagar area.
 
Deputy Chief Minister Manish Sisodia led a cycle rally from Nirman Vihar Metro Station on the Vikas Marg to mark the occasion.
 
Entry of cars was restricted on the stretch between Laxmi Nagar and Karkari Mor from 8 a.m. to 4 p.m. and traffic was diverted to other roads.
 
As a result, traffic moved at snail's pace near Anand Vihar ISBT and at ITO. 
 
"Delhi Chief Minister Arvind Kejriwal could not participate in the cycle rally due to ill-health," a government official told IANS.
 
Twenty additional buses were pressed into service to avoid any inconvenience to the people, the official added.
 
Before the cycle rally, Sisodia appealed to the people to not use personal cars and opt for public transport just for a day in a month to help bring down pollution which has alarming levels in the city, the official said.
 
Beating early morning chill, the residents of various areas of east Delhi, including students, came flocking in thousands and took part in the anti-pollution drive.
 
"It was easy walking on Vikas Marg today (Tuesday). Delhi is on the verge of becoming the most polluted city of the world and in such a situation only these initiatives are going to get results," Manoj Nair, who works at ITO, told IANS.
 
Praisining the move, Damodar Singh, a 50-year-old Laxmi Nagar resident, said: "It is a very good effort. Though it is for one day only but it would certainly help in bringing down pollution levels to an extent in the city."
 
Jitesh Kushwaha, who took part in the cycle rally, said: "I am happy to see that people are participating in this cycle rally. It is not a big deal to leave your car at home at least for one day for the sake of the environment."
 
Car-Free Day, held on the 22nd day of every month, was launched by the Aam Admi Party (AAP) government in October to create public awareness about using public transport and thus bringing down pollution levels in the city.
 
The first Car-Free Day was held on October 22 on the Red Fort-India Gate stretch and the second in Dwarka on November 22.
 
The increasingly toxic air in the capital prompted the judiciary to nudge the state government into checking pollution.
 
The city government then decided to restrict the number of motor vehicles on the roads on a given day based on whether their registration number ends in an even or odd digit. The even-odd system is set to be tried from the first of January next year.
 
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.

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