India Insight

Markets this week: Coal India, ITC top Sensex losers

The BSE Sensex lost 3 percent in the week ending Aug. 2, extending its losses from the previous week and marking its biggest weekly fall since mid-March.

Markets remained on the edge on uncertainty over how long the Reserve Bank of India (RBI) would continue measures to defend the rupee. The rupee fell 3.4 percent over the last five trading sessions and ended at a record closing low on Friday.

The central bank left the repo rate and cash reserve ratio unchanged at its policy review on July 30, but said it will roll back recent liquidity tightening measures when stability returns to the currency market.

Here are the top five losers and gainers:

LOSERS

Coal India: Shares in the state-owned firm ended the week down nearly 10 percent, taking its losses for the year to 28.3 percent. On Friday, the stock fell around 6 percent and hit an all-time low of 250.65 rupees during trade. The stock has now been down for three consecutive weeks.

On July 30, the government said it will sell a 5 percent stake in Coal India. In 2010, India sold a 10 percent stake in the company, raising $3.4 billion in an IPO.

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.

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.

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.

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.

Tracking Sensex: top gainers, losers in June quarter

By Aditya Kalra and Ankush Arora

Indian shares ended the June quarter on a positive note as the Sensex and Nifty registered gains of around 3 percent during the period, data showed.

The markets managed to post gains in the quarter despite falling around 2 percent in June after the U.S. Fed said it plans to begin winding down its stimulus later this year if economic conditions are favourable.

In positive developments, monsoon rains arrived on time and covered the whole country two weeks ahead of schedule while inflation slipped below 5 percent. Sentiment was also boosted when rating agency Fitch revised its outlook on India back to “stable” from “negative”.

More pilgrims mean more trouble for shrines in north India

Nestled in the Himalayas, Uttarakhand attracts increasing numbers of visitors every year. Between 2001 and 2010, the number of visitors to the state rose nearly 200 percent to 30.3 million. With major Hindu shrines located in the state, about 70 percent of the tourists who visit the state visit religious sites. That is a worrying sign for ecologically fragile areas such as Kedarnath – a small temple town located 3,583 metres (11,755 feet) above sea level and almost entirely washed out in recent flash floods.

The rush to the Himalayas has been accompanied by a haphazard pattern of growth that might not be sustainable. A study by infrastructure group IL&FS IDC Ltd showed that the carrying capacities – maximum number of persons an environment can support — of various tourist centres in Uttarakhand reached saturation levels in 2010.

It is in this context that some environmentalists have been calling the devastating floods a man-made catastrophe. “Ecological fragility sets limits. Today these limits are being violated … and the pilgrimage to the Char Dhams is being turned into crass consumerist mass tourism,” said activist Vandana Shiva in an email conversation with me. (To see pictures from the flood crisis, click here)

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