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from India Insight:

Markets this week: Sensex loses 2.7 percent, SBI falls 7.5 percent

Hurt by profit-taking in blue chips, the BSE Sensex posted its worst weekly decline since August as it lost 2.7 percent in a holiday-truncated week.

On Thursday, shares were hurt after ratings agency Standard & Poor's said it will review the rating of Asia’s third-largest economy after the new government lays out its policy agenda next year. The agency’s outlook on rating remains negative.

However, Goldman upgraded its view on India to "marketweight", with a Nifty target of 6,900 points. The investment bank noted optimism over political change is trumping economic concerns.

Here are the top Sensex losers and gainers of the week:

LOSERS

STATE BANK OF INDIA: After posting a near double-digit return last week, SBI was the worst Sensex performer in the week ending Nov. 8. The stock lost 7.5 percent ahead of earnings announcement on Nov. 13.

from India Insight:

Indian women get a new look, with some help from Pernia Qureshi

In a country where styling has not always been recognized as a worthy craft, Pernia Qureshi has put her profession at the forefront of Bollywood fashion.

Qureshi styled actress Sonam Kapoor for 2010's "Aisha", ushering in trendy outfits paired with designer handbags that overshadowed the film, a modern-day take on Jane Austen's "Emma".

from India Insight:

Equity mutual funds record best monthly performance since Jan 2012

India's diversified equity funds posted their best monthly performance since Jan 2012 as the benchmark Sensex scaled record highs in October, with bets on sectors such as banking and capital goods boosting mutual fund returns.

Such schemes, which form the largest category of equity funds in India by number and assets, rose 9.2 percent on average, mirroring returns on the 30-share BSE Sensex, data from fund tracker Lipper, a Thomson Reuters company, showed.

from India Insight:

India’s mission to Mars at a glance

India's Mars Orbiter Mission, the country's first interplanetary foray, is billed as a pathfinder to test technologies to fly to orbit and communicate from the Red Planet. It follows India's successful 2008-2009 Chandrayaan-1 moon probe, which discovered water molecules in the lunar soil.

Here are some facts about the project:

    One of the objectives is to develop the technologies required for design, planning, management and operations of an interplanetary mission. The mission aims to explore Mars surface features, morphology, mineralogy and search for methane in the Martian atmosphere using indigenous scientific instruments. Payloads on the satellite include instruments for studying the atmosphere, particle environment and surface imaging. These include the Lyman Alpha Photometer, a methane sensor, a composition analyser, a camera and an imaging spectrometer. The Polar Satellite Launch Vehicle will launch the 1,337 kg Mars Orbiter satellite as part of its 25th mission. The satellite is scheduled to reach the Mars orbit in September 2014 and is designed to circle the Red Planet in an elliptical orbit of 366 km X 80,000 km. The total cost of the Mars mission is $73 million.

Source: Reuters, Indian Space Research Organisation. More info here

from India Insight:

Pricey onions mean more tears for businesses, public

By Anupriya Kumar and Arnika Thakur

Onion prices recently reached 100 rupees per kilogram ($1.62) in some parts of New Delhi. It is hard to emphasize enough how prices like that are hurting businesses and the public. Onions are one of India's staples, and people consume 15 million tonnes of them a year. Now, many people can't afford to buy as many as they need – or any at all.

The government’s efforts to ease the price, which has quadrupled in some cities in the past three months, are unlikely to succeed. Heavy rains have reduced crop yields and delayed harvesting. Now, the average price of onions in India is 83 rupees per kilo, Delhi Chief Minister Sheila Dikshit said in an interview with Reuters published on Wednesday.

from Expert Zone:

India-Pakistan border flare-up a zero-sum game

(Any opinions expressed here are those of the author, and not necessarily of Thomson Reuters)

At places along the Line of Control (LoC), barely a wire separates the Indian soldier and his Pakistani counterpart. The genesis of the recent flare-up was the killing of five Indian soldiers on the Indian side of the LoC. The media blitz in Delhi found more fodder with a spike in infiltration attempts and exchange of fire beyond the LoC at posts across the international border.

from India Insight:

Interview: Sheila Dikshit on elections, rise of Modi and Kejriwal

By Aditya Kalra and Shashank Chouhan

The emergence of Arvind Kejriwal’s Aam Aadmi Party (AAP) as a credible contender in the Dec. 4 state election in Delhi has not dampened the Congress party’s confidence, its chief minister Sheila Dikshit said on Tuesday.

Dikshit, 75, who has been chief minister of India’s capital since 1998, spoke to Reuters at her official residence about the upcoming elections, the rise of Kejriwal and the Bharatiya Janata Party (BJP) under Narendra Modi.

from India Insight:

Uncompromising Kejriwal won’t support any party if Delhi gets hung assembly

(This article is website-exclusive and cannot be reproduced without permission)

The Aam Aadmi Party has up-ended the calculations of the Congress and the Bharatiya Janata Party in the race for control of New Delhi in one of five state assembly elections later this year.

Party leader Arvind Kejriwal is an uncompromising anti-corruption crusader who has tapped into a vein of urban anger after a string of breathtaking graft scandals.

from Global Investing:

Bond market liberalisation — good or bad for India?

Many investors have greeted with enthusiasm India's plans to get its debt included in international indices such as those run by JPMorgan and Barclays. JPM's local debt indices, known as the GBI-EM,  were tracked by almost $200 billion at the end of 2012.  So even very small weightings in such indices will give India a welcome slice of investment from funds tracking them.

At present India has a $30 billion cap on the volume of rupee bonds that foreign institutional investors can buy, a tiny proportion of the market. Barclays analysts calculate that Indian rupee bonds could comprise up to a tenth of various market capitalisation-based local-currency bond indices. That implies potential flows of $20 billion in the first six months after inclusion, they say -- equivalent to India's latest quarterly current account deficit. After that, a $10 billion annual inflow is realistic, according to Barclays. Another bank, Standard Chartered, estimates $20-$40 billion could flow in as a result of index inclusion.

from Global Investing:

Emerging equities: out of the doghouse

Emerging stocks, in the doghouse for months and months, haven't done too badly of late. The main EM index,  has rallied more than 11 percent since its end-August troughs, outgunning the S&P 500's 3 percent rise in this period. Bank of America/Merrill Lynch strategist Michael Hartnett reminds us of the extreme underweight positioning in emerging stocks last month, as revealed by his bank's monthly investor survey.  Anyone putting on a long EM-short UK equities trade back then would have been in the money with returns of 540 basis points, he says.

Undoubtedly, the postponement of the Fed taper is the main reason for the rally.  Another big inducement is that valuations look very cheap (forward P/E is around 9.9 versus a 10-year average of 10.8) .

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