Citizens' Issues
Mumbai Metro to begin operations from Sunday, finally!

The Mumbai Metro service will start at 5.30am and continue till midnight with a total of 16 rakes deployed on the sector, serving the glamour and IT centres of Versova and the business and manufacturing areas of Ghatkopar at a speed of 80kmph

From Sunday, 8th June, the 11.4kms long Versova-Andheri-Ghatkopar east-west corridor with 12 elevated stations en route will become operational, proving to be a boon for Mumbaikars, especially with monsoons around the corner.

The Metro service will start at 5.30am and continue till midnight with a total of 16 rakes deployed on the sector, serving the glamour and IT centres of Versova, and the business and manufacturing areas of Ghatkopar at a speed of 80 kmph, RInfra's Mumbai Metro One Pvt Ltd chief executive, Abhay Mishra, told reporters in Mumbai.

The Mumbai Metro project has been plagued by delays, litigation and cost over-runs. There have also been protests from various quarters about the proposed increase in fares. Anil Galgali, an RTI activist and chairman of the Mumbai-based non-governmental organisation (NGO) Athak Seva Sangh, in a letter to Maharashtra chief minister and Mumbai Metropolitan Region Development Authority (MMRDA) Prithviraj Chavan, said that as per the state government's notification, the minimum fare ought to be Rs9, while the maximum fare ought to be Rs13 at least during the initial year of operations.The increased fare band of Rs0 to Rs40 may not go down well with commuters.  

The 12 stations on this new service are Versova, DN Nagar, Azad Nagar, Andheri, Western Express Highway (WEH), Chakala, Airport Road, Marol Naka, Saki Naka, Subhash Nagar, Asalpha Road and Ghatkopar.

The entire Mumbai Metro project will be 146.5 km once completed, and is estimated to cost nearly Rs20,000 crore, scheduled to be completed by 2021.


Market highly overbought – Weekly closing report

Fresh gains may be hard to come by

The BSE 30-share Sensex closed the week that ended on 6th June, at 25,396 (up 1,179 points or 4.87%), while the NSE’s 50-share Nifty closed at 7,583 (up 353 points or 4.89%) for the week. We had mentioned in our previous week’s report that the Nifty will move in a sideways churn with the index moving weekly in the range of 7,200-7,400.

The losses of the past two trading session were wiped off with the gain on Monday. The new government's efforts for bringing in quickness and appropriateness in decision making was cheered by the market. Nifty closed at 7,363 (up 133 points or 1.83%) on Monday.

To expedite the process of decision making and usher in greater accountability in the system, the prime minister's office on Saturday announced that the Prime Minister has decided to abolish all the existing nine empowered group of ministers and twenty-one groups of ministers.

Up marginally from 51.3 in April to 51.4 in May, the seasonally adjusted HSBC India Purchasing Managers' Index (PMI) pointed to a slight improvement in operating conditions and was weaker than the series average.

On Tuesday, RBI's monetary policy review was in line with market anticipation, which helped the indices rise further. Nifty closed at 7,416 (up 53 points or 0.72%).

The RBI kept its main lending rate viz. the repo rate unchanged while cutting the statutory liquidity ratio by 50 basis points after a monetary policy review.

On Wednesday, indices witnessed a struggle to move higher. Nifty closed at 7,402 (down 14 points or 0.18%). Markit Economics said its seasonally adjusted HSBC India Composite Output index edged up to 50.7 in May from 49.5 in April to 50.7 in May, indicating growth in India's private sector output for the first time in three months. Reports were making rounds that the new government could allow foreign direct investment in the e-commerce sector as early as next month.

On Thursday, the market witnessed a gradual recovery. Nifty closed at 7,474 (up 72 points or 0.97%). Prime Minister Modi was reported to be on course to  visit Washington to meet President Barack Obama in September, signalling a fresh start in ties with a leader once denied a visa by the United States.

Market opened with full optimism on Friday. After opening with the highest opening gap since 26 May 2014 the Nifty closed at 7,583 (up 109 points or 1.46%). Sugar stocks were in focus after the Food Minister was quoted as saying, that the government will examine raising import tax on sugar to support local prices and help mills clear dues to cane growers which are estimated at Rs11,000 crore. Government officials said that the oil ministry has to decide on gas pricing issue by 1 July 2014 and that more clarity on the issue may be reached next week.

For the week, among the other indices on the NSE, the top two performers were Realty (12%) and PSE (12%) while the worst two performers were Pharma (1%) and IT (0.28%).

 Among the Nifty stocks, the top five stocks for the week were ONGC (23%); BPCL (20%);
Tata Steel (18%); Hero MotoCorp (14%) and Hindalco (14%) while the top five losers were HCL Technologies (6%); Dr. Reddy's Lab (4%); TCS (3%); Sun Pharma (2%) and ITC (1%).

 Of the 1,466 companies on the NSE, 1,272 companies closed in the green, 186 companies closed in the red while 8 companies closed flat.

 Out of the 27 main sectors tracked by Moneylife, the top five and the bottom five sectors for this week were:

ML Top sector


ML Worst sector








Software & IT Services


Non-Ferrous Metals


Foods & Beverages








Lifestyle & Leisure





India may not be affected much by ECB rate cuts
In the event of growth in the Euro zone slowing down, Indian exports would tend to get affected – though the impact will not be too severe, says CARE Ratings
The European Central Bank (ECB) on Thursday announced unprecedented measures in its monetary policy review meeting to continue its ongoing stimulus programme, in a bid to promote growth and deter the region from entering the deflationary trap. There were significant reductions in interest rates even as banks were signalled to increase lending. However, India may not be affected much, though slow growth in Euro region will affect our exports in a limited manner, says CARE Ratings in a report.
It said, "The crisis in Europe is to a large extent driven by low consumption and investment, which cannot be reversed easily by lowering interest rates, especially when the longer term refinancing operations (LTRO), which injected a lot of liquidity, did not quite succeed to turn the economy around."
According to CARE Ratings, as a fallout of ECB moves, the US dollar is expected to rise, which may put slight pressure on the Indian rupee. "When juxtaposed with the continued stimulus by the ECB and thereby higher Euro flows in the market, the US dollar is imminently expected to rise against the Euro. The rise in the dollar in international markets will impose pressure on rupee to a slight extent. Indian rupee may witness volatility with slight risks of depreciation against the US dollar, if international forces (foreign institutional investors-FII flows) dominate over the prevailing domestic factors," it said.
As of FY13, India’s exports to the European Union were about 17%-20% of the total export basket. In the event of growth in the Euro zone slowing down exports would tend to get affected – though the impact will not be too severe, the ratings agency said.
CARE Ratings feels emerging economies are likely to remain the favoured destination for FIIs. It said, "Firstly, given the macro economic situation in the Euro zone with low growth and low inflation, it is unlikely that the Euro area will offer competition to the emerging economies as regards FII inflows. Extremely low interest rates will be a deterrent to foreign investment inflows in the region. Secondly, the Eurozone contributes to only 12%-13% of the total foreign currency inflows in India as majority foreign currency inflows come from the US. Hence, this scenario is unlikely to be changed going ahead." 


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