Stocks
Nifty, Sensex, Bank Nifty to be under pressure: Weekly Market Report
Nifty will head lower if it closes below 8300 
 
The S&P BSE Sensex closed the week that ended on 26th June, at 27,811.84 (up 496 points or 1.81%), while the NSE’s CNX Nifty closed at 8,381.10 (up 156 points or 1.91%). In the previous week, we had mentioned that the 50-stock Nifty may rally a bit if it manages to hold above last week’s lows.
 
With positive news in India and Greece, the trend in Sensex, Nifty and Bank Nifty zoomed in Monday’s trading. Finance Minister Arun Jaitley had said the credibility of Indian economy has been partly restored, but cautioned the momentum must be sustained over the next two years to win over and provide comfort to world investors. Jaitley said there is "huge amount of enthusiasm" among investors as they see India picking up again after four-five years of slack. 
 
The Greek government submitted proposals to its creditors early Monday aimed at breaking the deadlock over a debt crisis that has imperilled Athens’s continuing membership in the euro currency zone. The proposals came just hours before European Union (EU) leaders were to hold emergency meetings aimed at forcing a breakthrough in the country’s international bailout negotiations.
 
On Tuesday, as expected, most indices were in the green with favourable macroeconomic news in India. Arvind Subramanian, Chief Economic Advisor (CEA), said he does not see oil prices going beyond $80 to $85, a price, which will help India manage its macro economy reasonably. India’s current account deficit (CAD) is not likely to worsen in this context.
 
On Wednesday, as expected, there were small percentage losses in the Sensex 30-stocks and Nifty. Bank Nifty managed to stay in the green. The general trend was still upward both in India and abroad. Indian Finance Minister Arun Jaitley had said the government is targeting to weed out the root causes of this menace and a one-time compliance window will be announced in the next few days for those with undeclared assets abroad to come clean. While a new law will come into effect from 1 April 2016, to tackle the black money menace, the government is in the process to put in place a compliance window for those with undeclared assets abroad to come clean by paying the penalty. 
 
The Income tax department had notified a new, more simplified, set of tax return (ITR) forms for taxpayers for assessment year 2015-16.
 
On Thursday, as expected, the Indian indices were range-bound and recorded minor gains. Making a strong pitch for investments, Finance Minister Arun Jaitley had asked long-term US investors to start investing without any delay as India's growth story is on a firm footing and all outstanding issues are under the government's active consideration. In his meeting with a group of US investors, Jaitley, who concluded his nine-day US tour Wednesday, alluded to the extensive reforms that have been launched by the Indian government during the last one year. Addressing long-term investors at a roundtable organised by CII and Kotak in San Francisco, Jaitley said the economic fundamentals are very strong, making India one of the most attractive investment destinations. This is the same pitch, former finance minister P Chidambaram used to make. 
 
Also, shares of information technology (IT) companies were under pressure, declining by up to 9% in an otherwise firm market. KPIT Technologies closed at Rs90.15, down 9.08% on BSE and Mindtree closed at Rs1,294.35, down 5.05%. KPIT Technologies shares also saw a spurt in volume with 40 lakh shares traded on the BSE as compared to a 2-week average of 1.26 lakh.
 
On Friday, the major indices were range bound, with the 30-stock Sensex closing at 27,811.84, down 0.30% and the 50-stock Nifty closing at 8,381.10, down 0.20%. The losses were marginal and the overall weekly trend was up. 
 
In a word of caution, RBI Governor Raghuram Rajan has asked central banks from across the world to define 'new rules of the game' as he warned that the global economy may be slipping into problems similar to the Great Depression of the 1930s. Rajan, who has been warning against competitive monetary policy easing by central banks, however, said the situation is different in India, where RBI still needs to bring down lending rates to spur investments. He expressed concern that the world may be slipping into the kind of problems of the depression of the 1930s and an international consensus was needed to be built over time. 
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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ToxicsWatch Alliance raises concern over old foreign ships allowed in Indian waters
Several foreign ships have been abandoned in Indian waters. It is not clear, if the ship, Cheng (formerly Albarella) that is now at Bhavnagar anchorage in Gujarat, is a cargo or an end-of-life ship meant for dismantling, TWA says
 
ToxicsWatch Alliance (TWA), which has been working on the issue of hazardous wastes and ship breaking for over a decade, has raised doubts on a foreign ship, Cheng (ex-Albarella IMO No. 8115332) that is in Indian waters on humanitarian grounds. The ship entered Indian waters about 35 days back citing failure of its generator and remained at Gopnath Anchorage without official permission for around 25 days. On humanitarian grounds, the ship is now allowed to shift to Bhavnagar anchorage. 
 
In a letter sent to Defence Minister Manohar Parrikar, and Shipping Minister Nitin Gadkari, the TWA, represented by Gopal Krishna said, "I have learnt that it is not clear as yet as to whether the ship is a cargo or an end-of-life ship meant for dismantling. I submit that this ship remained at Gopnath anchorage, Gujarat for some 25 days without official permission. I have learnt that some 10 days back following the permission of Alang Port Officer, it has been allowed to be shifted to Bhavnagar anchorage, Gujarat on humanitarian grounds." 
 
According to TWA, the ship Cheng was built in 1983. Its port of registry is Kingstown. It is carrying the flag of St. Vincent & The Grenadines. 
 
 
"It is not clear whether this ship submitted Pre Arrival Notification of Security (PANS) to jurisdiction port, Indian Coast Guard and Indian Navy at least 96 hours in advance before entering from foreign port. I submit that it is not clear whether there was prior informed consent taken before entering Indian Exclusive Economic Zone (EEZ) and Search and Rescue Region (SRR)," TWA said in the letter.
 
The letter says that there have been several instances where such foreign ships have been abandoned in Indian waters. "Such instances set very dangerous precedent and opens flood gates for such dead and dubious ships due to conniving and complicit officials. It is high time a high level probe unearths the rot and sets it right before it is too late," it added.
 
Seeking urgent intervention, from the Ministry of Defence and Ministry of Shipping, TWA said, "While Indian Coast Guard and Naval Intelligence have consistently raised security concerns from the entry of foreign ships, the role of other agencies of the state and central government appear to compromise country's maritime and environmental security disregarding fragile coastal zones of Bhavnagar in Gujarat".

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India's soaring drug problem: 455 percent rise in seizures
Officials have seized 105,173 tonnes of illegal drugs over this period, a reminder of a growing Indian problem on the International Day Against Drug Abuse and Illicit trafficking, observed on June 26 by the UN
 
India has witnessed a five-time (455 percent) increase in drug hauls over three years - 2011 to 2013 - according to data released by the government in parliament.
 
Officials have seized 105,173 tonnes of illegal drugs over this period, a reminder of a growing Indian problem on the International Day Against Drug Abuse and Illicit trafficking, observed on June 26 by the UN.
 
With nearly 18 percent of the world’s population in the 15-64 age-group, India is a prime market for illicit opiates originating in both Southeast Asia and Southwest Asia, according to the World Drug Report 2014.
 
The latest available data, from 2004, estimates that 10.7 million Indians – more than the population of Sweden – are drug users: 8.7 million consume cannabis and 2 million use opiates, according to a National Survey Report by the UN Office on Drugs and Crime and the Indian ministry of social justice & empowerment.
 
Mizoram, Punjab and Manipur are among the states where people are most vulnerable to drug abuse. One reason could be their proximity to porous international borders and international drug-trafficking zones, such as the Golden Triangle (Myanmar, Thailand and Laos) and Golden Crescent (Iran, Afghanistan and Pakistan).
 
Mizoram tops the list of states where drugs were seized: 48,209 tonnes over the past four years, followed by Punjab with seizures of 39,064 tonnes.
 
Some of the drugs seized include amphetamine, cannabis plant, cocaine, ephedrine, ganja, hashish, heroin, ketamine, lysergic acid diethylamide (LSD), acetic anhydride, methylenedioxy-N-methylamphetamine (MDMA), methamphetamine, methaqualone (mandrax), morphine and opium.
 
A staggering 64,737 drug-trafficking cases have been reported in the past four years, with Punjab topping the list with 21,549 cases.
 
Punjab accounted for almost half of all cases registered in India under the Narcotic Drugs and Psychotropic Substances Act (NDPS) in 2013 as we reported earlier: 67 percent of rural households in Punjab have one drug or alcohol addict, while 70 percent of young men are addicted to drugs or alcohol, according to a government report based on surveys.
 
In Manipur, there are an estimated 45,000-50,000 drug addicts, of whom nearly half are users of injectible drugs.
 
Studies have also revealed that 12 percent of drug addicts are below the age of 15, while 31 percent are aged 16-25 and 56 percent are aged 25-35.
 
As many as 64,302 people, including foreigners, were arrested on drug-trafficking charges across India over the past four years.
 
Nepalese are the most arrested foreign nationals: 266 from 2011 to May 2014 followed by Nigerians (210) and Myanmarese (96).
 
In terms of drug smuggling, the India-Bangladesh border is most vulnerable with 1,607 cases reported from 2011 till June 2014, followed by India-Nepal (779), India-Myanmar (317) and India-Pakistan (120).

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