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Straight from the Specialists

India Markets Weekahead: Time to prune positions in an extended honeymoon

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

The Nifty closed at a new closing high of 7,954 amid volatility in an eventful week that started with the Supreme Court ruling that the allocation of more than 200 coal blocks over the past two decades was illegal.

With nearly 3 trillion rupees at stake, this had a direct effect on the metals and power sector. It also affected banking, which has exposure to the two sectors.

The court’s verdict on the fate of the coal blocks and future course of action is expected on Sept. 1. It is not expected that licences for working coal mines would be cancelled as that would result in widespread disruption as well as financial losses and litigation. It’s possible that non-working coal mines could be de-allocated and others may be let off with penalties.

The much-awaited GDP data was published on Friday, which was a holiday to celebrate Ganesh Chaturthi, to honour the elephant-headed god of wisdom and prosperity. A growth of 5.7 percent for the April-June quarter was the best in nine quarters, albeit on a low base. This should cheer investors, although it also raises the bar going ahead.

Chinese general warns India even as Antony visits Beijing

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

India’s Defence Minister A. K. Antony is in Beijing on an official visit and a provocative curtain-raiser was provided by a retired major general of the People’s Liberation Army (PLA) who cautioned India not to “provoke new problems and increase military deployments at the border area and stir up new trouble.”

Predictably, this statement by Major General Luo Yuan, who is associated with the PLA’s Academy of Military Sciences, hit the headlines in both countries. Luo is no stranger to such controversy and has in the past made shrill and hostile remarks to local media and in Chinese cyberspace about Japan, Vietnam and the Philippines. One assertion – since denied – was that China should bomb Tokyo if Japan stepped out of line in relation to the long-standing island dispute between the two East Asian neighbours.

Fukushima disaster report: relevance of cultural traits

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(The views expressed in this column are the author’s own and do not represent those of Reuters)

The first report of the three major investigations commissioned by the Japanese government into the Fukushima nuclear disaster of March 2011 was released in Tokyo on Thursday. The findings of the investigation, chaired by Dr. Kiyoshi Kurokawa challenged the dominant assumption that this tragedy unfolded due to a confluence of natural calamities of tectonic proportion — namely a tsunami and an earthquake — and concluded that Fukushima was alas, ‘man-made’ and occurred due to “a multitude of errors and wilful negligence” that implicated the government, safety regulators and the operator of the nuclear plant.

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