The Indian market is likely to open in the green today with the indices expected to strike new all-time highs, continuing the splendid performance seen last week. The US markets closed with marginal gains on Friday while most Asian markets were trading higher in early trade on positive US jobs data, an indication that the world’s largest economy is on the recovery path. The SGX Nifty was 24 points up at 6,333 compared to its previous close of 6,309.
The Reserve Bank of India's (RBI) monetary policy review on Tuesday and the fresh stimulus announced by the US Federal Reserve on Wednesday took the key indices to new 34-month highs at the end of the holiday-shortened week. This apart, a slew of positive domestic economic indicators and institutional participation also helped the market rally. The market closed the week with gains of 4%; the Sensex surged 861.23 points and the Nifty added 264.10 points
Samvat 2067 started with the Sensex posting a fresh all-time closing high in the Muhurat trading session on Friday at 21,004, up 111 points (0.53%). The Nifty closed the session up 30.65 points (0.49%) at 6,312. Earlier, the indices added to the previous day's momentum and the positive cues from the global front. The market pared some gains but eventually the Sensex and the Nifty broke new barriers, a sign of good things to come.
The Asian pack was mostly in the green in early trade on Monday, taking cues from positive US employment data. Meanwhile the Bank of Japan (BoJ) announced that it will buy 150 billion yen ($1.8 billion) in domestic government debt on 11th November through a new fund focussed at boosting demand and curbing deflation. The BoJ announced last month that its 5 trillion yen fund will buy about 3.5 trillion yen in government debt and the balance will be used to purchase assets such as commercial paper, exchange traded funds and real estate investment trusts.
The Shanghai Composite was up 0.63%, the KLSE Composite was up 0.70%, Nikkei 225 surged 0.91% and Straits Times rose 0.59%. On the other hand, the Hang Seng was down 0.16%, Seoul Composite was down 0.09% and the Taiwan Weighted fell 0.16% in early trade. . The SGX Nifty was 24 points up at 6,333 compared to its previous close of 6,309.
The US markets closed in the green on Friday. The indices witnessed a flat ending after the Labor Department report showed that employers added 151,000 jobs last month, the first gain since May and better than expected. But payroll data was overshadowed by the unemployment rate which remained stuck at 9.6% for the third straight month.
The Dow added 9.24 points (0.08%) at 11,444. The S&P 500 gained 4.79 points (0.39%) to 1,225. The Nasdaq rose 1.64 points (0.06%) to 2,579.
The Government is set to come out with an amendment in the Companies Act in the winter session of Parliament, to converge the Indian accounting norms with International Financial Reporting Standards (IFRS) by April 2011.
Even as over 1,000 large Indian companies are gearing up to prepare their account books as per the IFRS by the coming fiscal, some issues including tax implications under the new accounting regime are yet to be resolved.
Also, various stakeholders have given their inputs to the Corporate Affairs Ministry, the nodal ministry for formulating these standards, for consideration.
The government on Sunday fixed the price band at Rs85-Rs90 per share for around Rs7,600 crore follow-on public offer (FPO) of state-run transmission company Power Grid Corporation of India.
The FPO comprises over 84 crore equity shares of Rs10 each constituting 20% of existing paid-up capital. At the upper end of the price band, the issue will fetch up to Rs7,600 crore.
The FPO of the company hits the market on 9th November while the bid closes on 11th November for institutional investors and on 12th November 12 for retail and non-institutional bidders.
Dharmishta Mithran was set up to help with funerals. Today, it helps people with other day-to-day concerns too, writes VN Vasudevan
It all began with a few like-minded people, seeped in Sanatana Dharma, coming together to assist families to conduct funerals and to perform the last rites of departed mortals. These spirited social workers, who look at death stoically, have created an organisation that is totally dedicated to this service.
In November 2001, the group set up Dharmishta Mithran as a not-for-profit company, under Section 25 of the Companies Act. The objective of the organisation was to deal with all matters related to the death of a person-from attending to calls in emergencies to conducting funerals anywhere in Greater Mumbai, and responding to other specific requests from members.
Jagmohan Vohra, a local businessman and a staunch devotee of Sai Baba, provided land to house the Aparakriya Centre (for last rites). From a modest beginning, the centre has grown into a 1,000 sq ft facility, thanks to the encouragement from late Pramod Shirwalkar, a former member of the Maharashtra legislative assembly. Mr Shirwalkar spurred them to reach out to salt pan workers in the Jai Ambe Nagar area. This community now has proper drinking water facilities, and they are provided toiletries (donated by Hindustan Unilever), books and uniforms for the kids and funds for their medical needs.
Dharmishta Mithran has conducted nearly 1,000 funerals in nine years. Desh Seva Samiti, which operates an ambulance service, has been a partner in the work. This has been possible because of the growing number of co-operators. Today, Dharmishta Mithran has 13 patrons, 551 life members and 219 ordinary members.
In March last year, the organisation acquired an apartment where it set up the Shraadha-cum-Community Development Centre that is patronised by people from Mumbai and from other cities. The Centre can conduct up to six kriyas a day.
The work of the organisation has been appreciated by none other than the pontiff of Kanchi Math, Jayendra Saraswati. On a visit to the Centre in December 2008, the religious leader compared conducting a funeral to holding an Ashwamedha Yagnam, saying: "No human being should run the risk of not being cremated for whatever reason."
The demand for the services has grown at a quick pace and the organisation has found it difficult to cope with the rush. Fortuitously, in August 2009 it managed to acquire more space and this enabled it to begin conducting shraadhs (memorial ceremonies). Now, it also conducts a variety of other rituals and ceremonies, such as upanayanam (sacred thread ceremony), annaprasanam (on the first birthday of a child), shastiabdapoorthi (on the 60th birthday), nischita thamboolam (engagement before marriage) and seemantham (during the first pregnancy).
The organisation has taken up new areas of activity like setting up a legal cell, to assist people to write and register a will and create awareness about issues related to transfer of property. It has published a compendium on transfer of property and monetary rights to appointed beneficiaries. It also provides transit accommodation for groups visiting Mumbai to attend marriages, for a low rent of Rs3,000 a day.
Dharmishta Mithran is also engaged in day-to-day issues, like working with the police department and partnering with citizens' groups to help senior citizens. It has an arrangement with a hospital in the area to treat its members at concessional rates. It is working with a sister NGO Bharatiya Adhyathmic Society to create infrastructure for the development of Vedic and other cultural/fine arts.
All donations to the organisation are exempt under Section 80G of the Income-Tax Act.
The Reserve Bank of India's (RBI) monetary policy review on Tuesday and the fresh stimulus announced by the US Federal Reserve on Wednesday took the key indices to new 34-month highs at the end of the holiday-shortened week. This apart, a slew of positive domestic economic indicators and institutional participation also helped the market rally.
The market, unfazed by the "technical glitches" at the Bombay Stock Exchange that halted trading for two-and-half hours on Monday, ended with smart gains on the day. The positive HSBC Markit Purchase Managers' Index numbers for October also supported the gains. The 25 basis point hike in short-term lending and borrowing rates by the RBI resulted in the market ending a tad lower on Tuesday.
It opened higher on Wednesday after factoring the RBI rate hike. Investors' optimism about the Fed's announcement spurred the indices to close with gains of over half a percent. The last trading day of Samvat 2066 saw the key barometers scale their new 34-month highs. Coal India's splendid debut performance on the bourses along with the easing of the weekly inflation figures and most of all, the new stimulus package announced by the Fed overnight, which includes purchase government bonds worth $600 billion over the next eight months, were the key triggers for the strong performance on Thursday.
The market closed the week with gains of 4%; the Sensex surged 861.23 points and the Nifty added 264.10 points. The top gainers on the Sensex were ACC (up 11%), State Bank of India (up 9%), ICICI Bank (up 9%), Hindalco Industries (up 8%) and Larsen & Toubro (up 7%). The key losers were Maruti Suzuki (down 3%), Hero Honda and Cipla (down 1% each).
The BSE Bankex (up 7%) and BSE Consumer Durables (up 6%) were the top sectoral gainers in the week. On the flip side, BSE Oil and Gas and BSE Power (down 2% each) were the losers.
Sliding for the third straight week, food inflation fell to 12.85% for the week ended 23rd October from 13.75% for the week ended 16th October. Experts said food inflation would soften further by November-end when kharif crops come to the market. Food inflation remained high in August and September as heavy monsoon caused a supply glut.
Continuing with its policy of modifying policy rates in small doses, the RBI on Tuesday raised the short-term lending and borrowing rates by 25 basis points (bps) while keeping the cash reserve ratio (CRR) and bank rate unchanged.
The central bank said that based on current growth and inflation trends, it believes that the likelihood of further rate actions in the immediate future is relatively low. This is the sixth time this year that the RBI has raised rates to tackle inflation and tighten home-loan rules to check a property-market rally.
India's exports grew by 23.2% in September, recording a two-year high of $18.02 billion, while faster import growth raised concerns over the country's widening trade gap. Imports grew even faster, by 26.1% to $27.14 billion in September.
During the April-September period this fiscal, exports increased by 28% to $103.64 billion compared to the corresponding period in the previous fiscal, according to official data released by the government.
Imports in the first half of the current fiscal stood at $166.4 billion, an increase of 29.9% year-on-year, translating into a massive trade gap of $62.83 billion in the April-September period. The trade deficit in September was $9.11 billion.
The HSBC Markit Purchase Managers' Index (PMI) for India, based on a survey of 500 companies, rose to 57.2 in October, from 55.1 in September and 57.2 in August. The rise indicates a robust growth in the country's manufacturing sector.
This was the 19th successive month where an increase in incoming new business was indicated. Whilst the rate of new order growth accelerated from September's 10-month low, it remained softer than the notably steep expansions recorded at the start of 2010, according to the HSBC PMI press release.