Share prices headed for gains: Weekly Market Report

Nifty to move up to 5,600, subject to minor dips

The market settled flat over the week, mostly on fluctuating global cues and concerns about a possible rise in diesel prices that will impact all sectors. However, a clutch of positive corporate earnings shielded the indices from a steep fall. Investors are also worried that the Reserve Bank of India (RBI) will likely tweak rates further, in its monetary policy review next month.

Lingering debt concerns in Europe pulled the domestic market down on Monday. It settled almost unchanged on Tuesday. Dismal earnings by realty major DLF the day before and weak global cues led to a negative close on Wednesday. However, a rally on the last two days cut the earlier losses and the Sensex closed the week at 18,266, down 60 points, while the Nifty finished at 5,476, off just 10 points. If the Nifty crosses 5,490, the market may witness a strong rally up to 5,600, subject to dips.

Among the Sensex stocks, ONGC, Hindalco Industries, Hero Honda and Reliance increased 3% each and ICICI Bank gained 2%. On the losing side, Tata Motors, BHEL declined by 7% each, State Bank of India fell by 4%, TCS and NTPC lost 3% each.

In the sectoral space, BSE Oil & Gas advanced by 2%, BSE Consumer Durables was up by 1%, whereas BSE Power and BSE IT fell by 2% each.

On the economic front, food inflation which had been declining over the previous three weeks, went up by 1.08 percentage point to 8.55% in the week ended 14th May, from the 7.47% recorded in the previous week.

After the petrol price hike a fortnight ago, prices of diesel, LPG and kerosene could be hiked next month when the ministerial panel headed by finance minister Pranab Mukherjee meets to take a decision on the issue.

Domestically, the timely arrival of the monsoon would have a significant impact on the sentiment at home in the next fortnight.

In corporate news, while recommending conditional approval for the Cairn-Vedanta deal, the group of ministers (GoM) considering the matter, said the two companies must agree to treat royalty on the mainstay Rajasthan block as cost recoverable, and agree to pay cess.

The GoM felt that as a pre-condition for the nod, Cairn or its purchaser should agree to pay cess on the all-important Rajasthan block, as well as agree to cost-recovery of Rs18,000 crore in royalty that state-owned Oil and Natural Gas Corporation (ONGC) is paying on the fields.

Earlier this week, chief economic advisor Kaushik Basu expressed confidence that the government would achieve its fiscal deficit target, but he said that if the number comes under pressure from factors like rising commodity prices, it would have to opt for reforms such as deregulating diesel prices. In his budget speech, finance minister Pranab Mukherjee had lowered the fiscal deficit target to 4.6% of the gross domestic product (GDP) from 5.1% for the previous fiscal.

On the global front, the Organisation for Economic Co-operation and Development (OECD) said that the global economic recovery is on track, helped by a stronger US economy, but threats ranging from high crude prices to European sovereign debt issues deepen the slowdown. In its twice yearly economic outlook, the Organisation forecast world growth would ease to 4.2% this year from 4.9% in 2010. It said that the setback due to the earthquake in Japan could disrupt the supply chain in other countries.

User

COMMENTS

madamchetanjisundari

6 years ago

please send your recommendations about stock market trading

GoM for conditional approval for Cairn-Vedanta deal

The GoM felt that as a pre-condition for the nod, Cairn or its successor should consent to paying cess on the all important Rajasthan block as well as agree to cost-recovery of Rs18,000 crore in royalty that state-owned ONGC pays on the fields

New Delhi: Recommending conditional approval for the Cairn-Vedanta deal, a Group of Ministers (GoM) on Friday said the two companies must agree to treating royalty on the mainstay Rajasthan block as cost recoverable, and agree to pay cess, reports PTI.

Sources privy to the deliberations said the GoM felt that as a pre-condition for the nod, Cairn or its successor should consent to paying cess on the all important Rajasthan block as well as agree to cost-recovery of Rs18,000 crore in royalty that state-owned Oil and Natural Gas Corporation (ONGC) pays on the fields.

Cairn should also withdraw arbitration proceeding it has initiated, disputing its liability to pay Rs2,500 per ton cess on its 70% share in the Rajasthan block.

The recommendation of the GoM headed by finance minister Pranab Mukherjee will go to the Cabinet Committee on Economic Affairs (CCEA) in two weeks time, oil minister S Jaipal Reddy told reporters after the 75-minute long meeting.

“It (GoM) has looked at various aspects of the ($9.6 billion) deal. It has taken a view on the matter. This view will be presented to the CCEA. The GoM is not going to meet again,” he told reporters here. “The recommendation was unanimous.”

He refused to any details of deliberations at the GoM.

Cairn will also have to seek consent of ONGC, which holds stake in 8 out of the 10 properties held by Cairn India in the country.

Also, Vedanta will need a security clearance from the ministry of home affairs.

Cairn holds 70% interest in the Rajasthan block but does not pay any royalty. It is opposed to cost recovery of royalty payments that ONGC makes on its behalf.

Meanwhile, ahead of the GoM meet, London-listed mining group Vedanta Resources said it has raised $1.65 billion (Rs7,425 crore) through private placement of bonds to part-finance its $9.4 billion acquisition of Cairn India.

Vedanta had in August agreed to buy at least 40% stake in Cairn India from its parent Cairn Energy Plc.

Cairn has refused to accept the requirement of partner consent even though five oil blocks it won under New Exploration Licensing Policy (NELP) explicitly provides for obtaining no objection from partners in case of change of ownership.

It holds 70% interest in the Rajasthan block but does not pay any royalty. It is opposed to cost recovery of the Rs18,000 crore royalty payments that ONGC has to make on its 30%, as well as Cairn's share of production. ONGC made the demand a month prior to the announcement of the Cairn-Vedanta deal in August 2010.

The CCEA had on 6th April constituted a GoM to look into the issue of conditional or unconditional consent to the Cairn-Vedanta deal.

Friday was the first meeting of the GoM which also comprised law minister M Veerappa Moily, telecom minister Kapil Sibal, commerce minister Anand Sharma and Planning Commission deputy chairman Montek Singh Ahluwalia.

Mr Sharma was unable to attend the meeting.

“We have taken up the matter in right earnest. We have taken a view at our level. The decision has to be taken by CCEA,” Mr Reddy said.

Solicitor General Gopal Subramaniam had in March opined that the government should not give unconditional nod to the deal and reaffirmed its views in a second opinion on 6th April.

User

TVI Express, yet another Speak Asia?

The MLM company promises five-star travel packages on joining and lucrative compensation fees up to Rs4.5 lakh on its direct selling model

Travel Ventures International (TVI) Express, a multi-level marketing (MLM) company, is growing its base in India. And like in the recent case of another MLM, Speak Asia Online that is being investigated, some people are questioning the big promises on its business model.

TVI Express claims to be in the home-based direct selling business, inviting those interested, to become members on a payment of Rs15,500. Members get a seven-nights-eight-days travel package in 3/5 star hotels of their choice, from about 4,000 hotels that the company has a tie-up with. A new member also gets a personal portal, which is primarily a booking website.

The company has a business model which, it says, is compensation-based. The member can sell the travel package to two new members. Those two new members would in turn sell the travel package to a further two members each. This goes on till level four, which is known as "Traveller Board". On completion of Traveller Board the top member is paid a compensation of Rs31,000.

Beyond this there is an "Express Board" level. Once the Traveller Board is completed, members can enter the "Express Board". Here too, the number of new entrants increases, taking the original members a step ahead. On completion of "Express Board", the top member gets Rs4.5 lakh as compensation fees.

Members also get a 5%-10% bonus for every new member joining after he/she "cycles out of Express board".  It also rewards the members with incentives "ranging from luxury cars to private jets and splendid villas in exotic locations around the world."

However, contrary to the company's claims, members have alleged that it is not paying the promised compensation. According to complaints posted on consumer forums on the Internet, the TVI Express business model is a scam, as many members who have increased their down line have not been paid any compensation.

TVI Express has a presence in many countries, among them the United Kingdom, South Africa, Canada, France, Germany and China.

Interestingly, according to a news report, The Bank of Namibia had warned people about investing in TVI Express and Holiday and Cash because they were operating in Namibia in violation of the laws.

When Moneylife called TVI Express, a company official said: "We abide by the laws. We follow all the rules and regulations. Ours is not an investment scheme; our business works on compensation fees which we pay to our members, who generate business for us. Those who work, earn. All these complaints are posted by our competitors who are jealous of our business growth."

Meanwhile, it has been reported that bank accounts in Singapore of Speak Asia, the online survey company which is being investigated, have been frozen, disrupting payouts to vendors, clients and staff.  

Moneylife has consistently exposed the dubious claims made by such MLM companies that are promising high returns in a short span. (Read, "Stay on guard: Need to regulate MLM firms, websites, so investors don't suffer".)

User

COMMENTS

GOVINDAN

6 years ago

Speak Asians say their company's Singapore bank account was frozen as a result of adverse media campaign unleashed by Star News.

Ridiculous.

How can a Bank freeze the account of a customer stating reasons of "Adverse media reports"?

Can any Speak Asian disclose the legal steps the company has taken to unfreeze the Bank Accounts?

Hars

6 years ago

There is another company like this named- xlnc in Bandra who does not deliver what it promises.

REPLY

Akash Mehra

In Reply to Hars 6 years ago

@Hars

No information about xlnc but did you ever try TVI Express. And this is not a sales pitch..

The point here is that no comments ahould be made until and unless the product is tried, and tested.

Moneylife reporter has gone absurd here publishing bullshit about aan orgaanization that has a goood ravel package as well as pays off well.

Akash

govindan

In Reply to Akash Mehra 6 years ago

Goood "ravel" package indeed!!

Kishore

In Reply to Hars 6 years ago

Yes, I went to their offive in Khar and they have good set of people to convince you. i landed up buying 3 id's. 2 for vacation package and 1 for website. Neither the website operates properly nor does the vacation package promised was give. they are frauds. Charged me 17,000 for 2 packages which turned out to be for only 7000. I lost my 10,000 besides the website charges of 12,000 which is a real waste as the rates are higher than other sites and also if someone tries to make a transaction, the credit card is charged but the tickets are not issued.

NEVER INVEST WITH THEM!

Akash Mehra

6 years ago

@anonymous

Unfortunately, it is media and people believe them. They are going to believe these script kiddies even if they write your mom is a prostitute.

They should think before writing as every word written by them can impact thousands of lives. Unfortunately, conspiracy, politics and money revolves around them.

Akash

REPLY

kishore

In Reply to Akash Mehra 6 years ago

MLM professionals and their mental lying:

It is impossible to calculate the moral mischief, if I may so express it, that mental lying has produced in society. When a man has so far corrupted and prostituted the chastity of his mind as to subscribe his professional belief to things he does not believe he has prepared himself for the commission of every other crime (Thomas Paine, The Age of Reason)

kishore

In Reply to Akash Mehra 6 years ago

It is impossible to calculate the moral mischief, if I may so express it, that mental lying has produced in society. When a man has so far corrupted and prostituted the chastity of his mind as to subscribe his professional belief to things he does not believe he has prepared himself for the commission of every other crime (Thomas Paine, The Age of Reason)

Annonymous

6 years ago

This is not done, pls provide the MLM companies an equal opportunity platform. Even a Sales executive who gets 10,000 salary, for getting a business of 10,00,000 gets a commission of 25000-30,000 and then gets into corporate slab of incentives(which at times get into lakhs), so whats the big deal ?

GOVINDAN

6 years ago

Who is this Dr. Maddineni of NANO EXCEL MLM.
Is he a doctor?
Any idea about this man?

rajesh

6 years ago

gald you bought up this MLM scam i had requested you to do a write about it when u wrote on the speak asia story ....... the sheer number of desperate greedy people who fall for this scam is just amazing
The biggest MLM con of course is still good old AMWAY

Akash Mehra

6 years ago

Moneylife Magazine

I strongly urge you to contact TVI Express India to get your facts straightened out. You are a reputed organization and publishing false facts or defaming a company doesnt really suit your profile.

If you knew that TVI Express has completed one year of operations in India, is a valid organization in the Direct Selling Industry, paying proper service taxes and TDS to the government along with fulfillment of the fabulous products they offer you wouldnt have written such an article about them.

I write this as I feel media has to be vigilant before writing anything about a company as people still tend to believe media and not the facts.

As a respected editor working for Moneylife magazine, you should contact them and take this article down comparing TVI Express with Speakasia. There is no comparision between a valid product offering company and an investment plan.

Akash Mehra

REPLY

govindan

In Reply to Akash Mehra 6 years ago

Sir,

Can you please confirm that none of your distributors are from lower strata of the society like housemaids/ domestic helps, coolies, manual laborers, cab drivers, class-IV employees etc etc.,

theertha

In Reply to Akash Mehra 6 years ago


http://www.consumercomplaints.in/complai...

Mustansir Engineer

6 years ago

Respected Editor,

Your article is on TVI Express. Does it make any sense using Speak Asia Online Survey name here for comparision. Is there any similarity in one survey another travel package ?
I honestly believe media should act responsibly when commenting. Your honoured news do make a impact on 19 lakhs Speak Asian Panelist.

REPLY

kris

In Reply to Mustansir Engineer 6 years ago

What about comparing Speak Asia with Ram Survey?

Mustansir Engineer

In Reply to kris 6 years ago

Is there any comparison ?
Speak Asia had paid each panelist till the disruption caused by media. Even after all the onslaught, the board, staff are still present in India.
About Ram Survey, I have no clue. If you have and want to share your views please go ahead.

praful

In Reply to Mustansir Engineer 6 years ago

Is it because of indian Media the singapore bank accounts frozen?

Rahul

6 years ago

I think the most notorious of MLM company is running in Rajasthan Jaipur named Gold Sukh. They have collected tremendous amount of money from the MLM participants. Last year they were raided by Income tax department which took around 29 Crores as taxes. This whole scheme is similar to GoldQuest of Chennai and needs to be investigated. It is one of the biggest scam which can come out..

REPLY

govindan

In Reply to Rahul 6 years ago

All MLM compnaies are notorious. What about NANO EXCEL, UNIPAY/VISAREV, TYCOONS EMPIRES?. NANO EXCEL looted Kerala. Unipay looted Tripura, Gold Sukh looted Rajasthan, RMP Tamil Nadu, Speak asia Maharashtra

Mustansir Engineer

In Reply to govindan 6 years ago

Mr. Govindan,

What is "Speak Asia Maharashtra" ???
Never heard about this organisation...???
Please go ahead and educate me on it...

govindan

In Reply to Mustansir Engineer 6 years ago

Don't worry. you will soon hear about this "organization".

Prasanna

In Reply to govindan 6 years ago

Hello!All,

Pls maintain a distance from Govindan.He is allergic to MLM,so even when some says MLM or Direct selling he will start barking.He will some up with his own stories from kerala,then he will give some evidence of press release,he will name few companies and finally conclude that it's Money Laundering Mechanism.It's not his fault,he has been taught the same lesson and his world is Kerala,Kerala and only Kerala>no use breaking your heads and trying to educate Govindan...he has a mental block for MLM or Direct Selling.Secondly,he is an excellent example of that section of society who will never embrace change or development.They will prefer standing whole day under the sun with flags,but they will not budge their way for development.It is because of such type of people that India has still got the tag of a 'Developing Nation'.

govindan

In Reply to Prasanna 6 years ago

Respected Prasannaji,

Your assessment is correct. We prefer standing whole day with flags under the sun rather than spending a whole day for cheating innocent and uneducated housemaids, domestic helps , coolies, class IV employees, slum dwellers, beggars etc etc

jitender

6 years ago

Dear ,

TVI Express is not a money chain business, it is purely MLM company. it is not very easy to earn Rs. 4,50,000 .

All the best

Akash Mehra

6 years ago

TVI Express pays off very well on the sales that distributors make and is not at all an investment plan.

@Simon, I guess you need to check the services you receive when you become a member. You get a 7 nights/8 days holiday in a resort or a 3 nights/4days accommodation in a business hotel.

We all can write anything here as its a world of free voice.. however, the truth doesnt depart from the fact that TVI Express is not an investment plan and is a legitimate Direct Selling Company like other established players in the industry.

Akash Mehra

SImon

6 years ago

You wrote, "Members get a seven-nights-eight-days travel package in 3/5 star hotels of their choice, from about 4,000 hotels that the company has a tie-up with."
This is wrong. Members get nothing against the Rs15,500 except that they become member.

REPLY

jkwonders

In Reply to SImon 6 years ago

Dear Simon,

My friends have already travell under this pacakage , If you want to travell under this pacakge revert me.

Just travell and then make any thought dear for any body.

Waiting for reply

GOVINDAN

6 years ago



MLM = Money Laundering Mechanism

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