India Insight

Tracking Sensex: L&T top loser this week

By Aditya Kalra and Sankalp Phartiyal

The Sensex lost 2 percent and the Nifty slipped 2.3 percent in a tough week for stocks as Indian markets remained cautious ahead of the Reserve Bank of India (RBI) policy review on July 30.

The benchmark Sensex, which ended in the red for three of five trading sessions, touched a 2-1/2 year high during the week as consumer goods shares surged.

The rupee continues to be in focus as it hit a five-week high on Friday. The RBI tightened liquidity further on Tuesday to support the rupee and the central bank is likely to hold rates at its policy review next week.

Here are the top five losers and gainers of the week that ended on July 26:

LOSERS

Larsen & Toubro (L&T): India’s largest engineering and construction conglomerate was the worst Sensex performer of the week, with its shares losing 13.2 percent after June-quarter results disappointed markets.

The company warned of a tough road ahead when it reported a 12.5 percent fall in net profit on July 22, as a slowing economy continues to hurt. Shares in L&T fell more than 7 percent on results day and ended in the red in all but one trading session this week.

A look at some of India’s cheap food schemes

Nearly 70 percent of India’s population lives on less than $2 (around 120 rupees) a day, according to World Bank data. The country, the world’s second-largest producer of wheat and rice after China, is also home to a quarter of the world’s hungry.

Helping the poor has always been on the ruling government’s agenda since independence. India, which currently spends 900 billion rupees on giving the poor access to cheap food, hopes to increase it to 1.3 trillion rupees ($22 billion) and widen its scope with an ambitious food security programme launched this month.

The problem is many of the intended beneficiaries don’t realize they’re missing out on existing schemes.

Tracking Sensex: top gainers, losers this week

It was a good week for Indian shares as the BSE Sensex gained 1 percent to close at 20,149.85, after the index touched a near two-month high during trade on Friday. The rupee gained for the second week and ended at 59.35/36 after rising 0.3 percent.

Markets reacted negatively on Tuesday to the Reserve Bank’s moves to tighten liquidity in the system in a bid to support the weak rupee. However, Prime Minister Manmohan Singh said on Friday that these steps may be temporary.

Bank of America-Merrill Lynch expects the Sensex to remain range-bound with limited upside of 5 percent until regional elections in mid-November. The bank recommends investors to be ready to buy on dips at levels of 19,000-19,300.

In search of the lost telegram

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

I sent my first and last telegram over the weekend, thanks to the flood of newspaper reports that warned of India’s telegraph service winding up after more than 160 years.

My curiosity was fuelled by memories of Bollywood movies from the 1960s and 70s. On receiving a telegram, the hero’s mother either fainted or treated the family to sweetmeats – depending on whether the news was good or bad.

The best known telegram in Indian fiction is probably the one in R.K. Narayan’s “Malgudi Days” collection. In a popular short story, the fictional messenger doesn’t deliver a telegram with news of a relative’s death because it could have ruined someone’s wedding day.

Back to the grind for Maharashtra’s dance bars

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

Dance bars are set to reopen in Maharashtra, with India’s Supreme Court rejecting a state government ban in 2005 that forced the popular nightspots to close.

At the time, I was a crime reporter with an English daily in the city of Pune and visited a couple of bars operating alongside the highway to Mumbai.

These dance bars would often be run in seedy and dark air-conditioned halls. Up to 100 customers at a time would sit at tables positioned around the dance floor, where girls in their twenties would gyrate to blaring Bollywood music under flickering disco lights. The smell of liquor and cigarette smoke would linger in the air as the clients would ogle the girls, who typically would wear gaudy free-flowing skirts with blouses.

from Photographers' Blog:

A farewell message to the telegram

New Delhi, India

By Mansi Thapliyal

At 10 p.m. on July 14, India will send its final telegram before the service shuts the following day, signaling the end of a service that has been going for over 160 years. It is the latest means of communication to be killed off by the mobile Internet age.

From families waiting to hear from their children who migrated to India’s cities for work, to soldiers in remote areas for whom the telegram was the only way to stay in touch with relatives, the telegraph service has been used to connect millions of people across this vast country since the mid-19th Century.

Charged per word, some messages went on and on, while others chose to write single words like “love” – a simple message to express how they felt.

Rupee spoils holidays abroad for Indians, but not for all

With the rupee hovering near a record low, Indian tourists would be tempted to give foreign shores a miss this year. But staying home is not an option for Harsh Chadha, a multinational executive just back from a three-week family vacation in the UK.

Chadha, 35, is part of India’s growing elite, whose trips abroad are not affected by the vagaries of the currency market.

“[If I’m planning] a trip to a place like London [and] already spending enough money … a 10-15 percent increase in the dollar will not be pinching me a lot,” says Chadha, an IT director who bought pounds for 92 rupees ($1.5) each before going on vacation.

Interview with BJP leader Narendra Modi

By Ross Colvin and Sruthi Gottipati

Narendra Modi is a polarising figure, evoking visceral reactions across the political spectrum. Critics call him a dictator while supporters believe he could make India an Asian superpower. (Read a special report on Modi here)

Reuters spoke to Modi at his official Gandhinagar residence in a rare interview, the first since he was appointed head of the BJP’s election campaign in June.

Here are edited excerpts from the interview. The questions are paraphrased and some of Modi’s replies have been translated from Hindi.

Quote, unquote Narendra Modi

When Narendra Modi speaks, people listen. It’s not just because he’s widely expected to be the opposition Bharatiya Janata Party’s (BJP) candidate for prime minister in elections due in 2014. The chief minister of Gujarat seems to know his audience well. They cheer him on and jeer at his opponents; they applaud every two minutes. But sometimes, what he says catches people’s attention.

(The Narendra Modi interview: puppy remark and more)

Here are some of Modi’s statements that made headlines:

“From snake-charmers, we are now a nation of mouse-charmers. Our youngsters are shaping the world with the click of a mouse with their feats in the IT sector,” he told an audience of students at Delhi University’s Shri Ram College of Commerce on Feb. 6.

The speech, broadcast on television, was seen by many as Modi’s first pitch to young, educated India as its future leader. He also said:

Tracking Sensex: Top gainers, losers this week

By Aditya Kalra and Ankush Arora

Indian shares started the month of July on a flattish note, with the BSE Sensex rising 0.5 percent in the week ending July 5 after climbing more than 3 percent the previous week.

However, a weak rupee continued to dampen sentiment as the unit ended the week below 60 to the dollar, adding to concerns about India’s current account deficit.

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

GAINERS

ITC: India’s largest cigarette maker rose 5.5 percent this week, making it the best Sensex performer, boosted by a hike in cigarette prices and value buying after its recent underperformance in June.

  •