Stocks
Nifty, Sensex may move up - Weekly closing report
Nifty may decline from the current levels, a bit, but the trend is up 
 
The S&P BSE Sensex closed the week that ended on 19th June at 27,316 (up 891 points or 3.37%), while the NSE’s CNX Nifty closed at 8,225 (up 242 points or 3.03%). Previous week we had mentioned that 50-stock Nifty may rally a bit if it manages to hold above last week’s lows.
 
On Monday, the Indian stock market on Monday was range-bound and closed marginally higher. Inflation data and the index of industrial production (IIP) announced by the government today were positives. Both Indian benchmarks, the NSE’s CNX Nifty and S&P BSE Sensex closed Monday at 8,013.90 or 0.39% up and at 26,586.55 or 0.61% up, respectively.
 
While inflation data is positive for the economy, monsoon and agriculture news is less encouraging. India's farm economy could contract this fiscal year for the first time in over a decade because of drought, threatening Prime Minister Narendra Modi's drive to lift millions in the countryside out of poverty and bolster his party's support.
 
On Monday, there was news that the US government was investigating an outsourcing contract involving utility firm Southern California Edison and India's largest software exporters, Tata Consultancy Services (TCS) and Infosys, similar pacts signed now or recently are coming under the scanner, say reports. This reinforces analysts’ view that IT stocks are not growing as much as they used to some years ago in the stock market.
 
On Tuesday, Indian markets opened flat and were down for most part of the day. At around 2 pm the Sensex and Nifty hit the lows of the day and started shooting up, ending up for the second successive day.
 
India's trade deficit narrowed to a three-month low in May 2015, helped by lower gold imports, bolstering the outlook for its current account balance. But in a worrying sign, weak global demand as well as persistent domestic bottlenecks led to a sixth straight annual fall in merchandise exports. Exports account for about a fifth of India's $2-trillion economy. The trade deficit shrank to $10.41 billion last month from $10.99 billion in April 2015, data released by the Commerce Ministry showed on Tuesday.
 
The benchmark opened Wednesday higher however, it started moving lower. After reaching ear previous day's close, Nifty started moving in a range. After 1.21pm, the 50-stock benchmark gained momentum and moved up to hit a four day (including today) high. After hitting the day's high, Nifty made a quick plunge and closed near to the dip it made.
 
On Thursday morning, Nifty made an early surge and maintained its upmove throughout the day. It closed near the day’s high at 8,174.60, up 1.03%. Finance minister Arun Jaitley has assured global investors that efforts are being made to reduce their concerns on expediting reform process, tax regime and policy stability by the Narendra Modi government. Jaitley, who began his 10-day trip to the US on Wednesday, met investors and said while there is "a lot of excitement and a lot of buzz" about India, there are concerns about the pace of reform process and policy stability also.
 
Fitch Ratings does not expect India to increase customs duties on steel imports to alleviate much of the pressure on steel producers, which have been challenged by cheap imports and weak domestic demand. Higher customs duties will result in only a marginal increase (between Rs500-Rs1,100 a tonne) in the landed costs of imported steel products, which in the short term will help close the gap between domestic output and the cheaper imports.
 
As expected on Friday, the Nifty remained on an upmove with its day’s low near the opening mark. Sensex, Nifty and Bank Nifty closed in the green. Nifty closed the week at 8,224.95.
 
Out of the 27 main sectors tracked by Moneylife, top five and the bottom five sectors for this week were:
 

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Does Modi do yoga? asks Russian President
"Does Modi do yoga?" That was the question posed by Russian President Vladimir Putin when he was told that Indian Prime Minister Narendra Modi had started a Ministry of Yoga.
 
He was incredulous that a ministry of yoga (it is called Ministry of Ayush, an abbreviation for departments dealing with Ayurveda, Yoga, Unani, Siddha and Homeopathy incorporating indigenous and alternative systems of healing) could be set up, and then smilingly asked why anyone would do that. He wondered if the man who wants to spread yoga practise it himself. He was told that it was likely, though he had not publicly said so.
 
"He is a good man, and a personal friend," Putin said in reply to questions from visiting wire service reporters from around the world, including IANS, one each from a dozen countries, who met him at midnight at the end of the second day of the St Petersburg International Economic Forum here.
 
In response to a question by IANS, that he and Modi were both being seen as "tough leaders", Putin said it was not true. "I am not tough. I am always willing to compromise," adding that often the other side took a tough stand. 
 
"They say they have two opinions. One that they are right. And the second that I am wrong," Putin said at his official residence here which encompasses the Boris Yeltsin Digital Library. Putin is from St Petersburg.
 
The interaction with Putin ended at around 2 a.m. with him saying that often his meetings stretched to the wee hours of the night. He said he had to meet so many people, and often many of them would go into lengthy explanation about their issues that he found it difficult to interrupt.

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COMMENTS

MG Warrier

2 years ago

Even if Putin may not be a tough person, life up there, must be really tough for him, given the media glare and the way in which each of the spoken word and change in body language are interpreted by a 'starved' media. This is equally applicable to PM Modi! Sometime back, refering to the endless allegations Kerala CM Oomen Chandi was facing, someone said, he wondered how the CM could sleep peacefully. Perhaps, our leaders are trained to hear without listening, answer without caring about the purport of the question and smile effortlessly in good company! Most of the leaders worldwide have a sense of humour which help them out in tough situations.

The World's top drinker is an Asian, scientists report (The Funny Side)
The biggest consumer of alcohol on the planet is an Asian, a science report said. That headline made me think they'd located a gentleman I shall refer to only as Uncle E
 
Made an important discovery last week. There is no masculine way to carry a giant teddy bear and a Disney Princess helium balloon back from a funfair.
 
Never mind. My ego should recover in three to four months with sufficient stroking.
 
And now to the news. The biggest consumer of alcohol on the planet is an Asian, a science report said. That headline made me think they'd located a gentleman I shall refer to only as Uncle E.
 
When I was growing up, his daily beer intake matched everyone else's daily oxygen intake, the only difference being that humans can survive several minutes without oxygen. When he went on holiday, they shut the local brewery. In biology class at school, I used him and the brewery as an example of symbiosis, entities dependent on each other for survival. We used to joke that when pink elephants got drunk, they saw him. He cut himself once, and no blood came out, just pale stuff that looked like Corona Extra.
 
But a read of the report revealed that scientists hadn't found my relative. The world's biggest drinker is probably the Malaysian pen-tailed tree shrew. It lives on a type of flower nectar which has evolved to be an alcoholic drink, said the study published by the Royal Society. (Evolution is a wonderful thing.) I wish I had known about alcoholic flower nectar when I was young, and was busy giving up frivolous luxuries like food, water and shelter to pay for my beer.
 
Scientists also found a type of chimpanzee that regularly drinks the equivalent of a whole bottle of wine in fermented tree sap. Since most mammals have much smaller bodies than humans, drinks should affect them more. So I guess three glasses of beer might be 21 glasses in "dog beers".
 
By coincidence, my youngest child a few days ago asked me: "Why don't you drink wine, Dad?"
 
I was first asked this question when I was about 28, three or four years after I had given up alcohol, and I'd answered: "People who drink alcohol say and do stupid things." But this answer stopped working when Donald Trump stopped drinking and became measurably stupider.
 
So I gave my daughter a different answer. "Alcohol reverses evolution, making you smell like a pangolin, grow extra nipples and gradually turn back into a lizard," I said. (It's never too early to teach hard science to children.)
 
In my reader contributions mailbox was a report that some days ago in India, goat farmer Ramesh Patni found members of his herd staggering around or fast asleep. Police had steamrollered 11,500 bottles of seized liquor on the field and the goats had partied for three hours before collapsing. Mr. Patni took them home in a handcart to sleep it off. The local police said the last year they'd smashed the bottles on a different field and the cows had got wildly drunk.
 
I have a new respect for wildlife. We think they're just innocently chewing grass or sitting in trees, but these guys know how to party on a low budget. I just hope no one tells my Uncle E about the flower nectar.

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