India Insight

Markets this week: Sensex gains 2.4 percent; L&T, Tata Power surge

September is turning out to be a good month for Indian shares, as key stock indexes extended gains in the last four sessions. Monday was a market holiday.

The BSE Sensex gained 2.4 percent, while the broader Nifty rose nearly 3 percent as foreign institutional investors (FIIs) extended buying into Indian equities. A recovery in the rupee, which posted its best week in 15 months, also boosted sentiment.

Profit-taking dented markets mid-week as caution also prevailed ahead of a series of macroeconomic events scheduled next week, including August inflation data due on Monday and the likelihood of U.S. Fed’s decision to announce a reduction in its monetary policy stimulus. RBI will review its policy on September 20.

Here are the top gainers and losers of the week:

GAINERS

Larsen & Toubro (L&T): Shares of India’s largest engineering and construction conglomerate surged during the week, ending 10.6 percent higher as the best Sensex performer. The stock outperformed the BSE capital goods index during the same period, which rose 8 percent.

On Friday, capital goods shares gained after data on Thursday showed industrial production unexpectedly rebounded in July. Capital goods production rose for the first time in four months in July, posting annual growth of 15.6 percent.

Delhi gang rape verdict: Reactions from people on the street

By Aditya Kalra and Arnika Thakur

Four men were found guilty on Tuesday of the gang rape of a woman on a bus in New Delhi and her murder, closing a chapter on a crime that triggered protests and soul-searching about the treatment of women in India. Arguments on sentencing are due to begin on Wednesday.

(Live coverage of the trial at http://reut.rs/15eIlsb)

Here are some reactions from people on the street:

POOJA SINGH, 21, student, at the Munirka bus stop.
“The girl lost her life, the accused should get a similar punishment.”

JYOTI SHARMA, 21, student
“Even the juvenile should be given life imprisonment. The four adult accused should be hanged. I don’t feel safe anywhere even on a bus stand … I try to reach home before dark”

Bhaskar Rao: the cop with one head and too many hats

Bureaucracy begets comedy as a general rule. The latest example is Bhaskar Rao, a police officer in Karnataka.

As the Deccan Chronicle reported on Aug. 27, Rao, an inspector general of police (IG) responsible for the internal security of the state, is also filling the role of training chief.

This forces him to write letters to himself to seek approval for personnel training programmes.

Outlook weak for India economic growth: analysts

India’s economy grew at 4.4 percent in the June quarter, its slowest rate since the first three months of 2009 and weaker than analysts’ consensus of 4.7 percent in a Reuters poll.

With the rupee still trading near record lows and a ballooning current account deficit alarming investors and policymakers, several investment banks are worried about the road ahead.

Here are some comments on India’s economic growth released by investment banks after the recent GDP data:

from The Human Impact:

How old is old enough to be jailed for gang rape and murder?

The crime was horrific, the case shocking, and the trial long. Yet when the much anticipated first verdict in the high-profile Delhi gang rape case was pronounced in India over the weekend, there was no jubilation, just outrage.

Found guilty of the gang rape and murder of a student on a bus in December, the teenager - one of six accused - was sentenced to three years in a juvenile home, sparking anger and debate over whether India is too soft on its young offenders. Four adult defendants are on trial in a separate fast-track court. One of the accused committed suicide in jail.

The first reaction came from the parents of the dead 23-year-old student, who was beaten, tortured with an iron rod and raped on the night of Dec. 16 before being dumped on a roadside in the capital.

Sensex loses 3.75 percent in action-packed month

The BSE Sensex lost 3.75 percent in August, its worst monthly performance since February, as worries over foreign outflows were exacerbated by the rupee that fell to record lows.

India’s current account deficit and a struggling economy still worry market participants.  Data showed on Aug. 31 that June quarter GDP grew at 4.4 percent, below analysts’ estimates.

The rupee recovered in the last few trading sessions of the month, closing around 65.75 per dollar after falling to a life low below 68. Still, the unit lost 8.1 percent in August, its biggest monthly fall since at least 1995.

Need good roles but need money too: Manoj Bajpayee

In a career spanning nearly 20 years, actor Manoj Bajpayee has oscillated between brilliant and mediocre performances, winning acting honours while also getting brickbats for his poor choice of movie roles.

Bajpayee, whose performance in “Gangs of Wasseypur” (2012) and “Special 26” this year won him critical acclaim, plays the villain in Prakash Jha’s “Satyagraha”. The Bollywood film opened in cinemas on Friday.

The 44-year-old actor spoke to Reuters about how he nearly wrecked his movie career, the time when he had no work and why he is no longer content with just good roles.

Pricey dollar puts South Africa, Australia on Indian tourists’ maps

When Aparupa Ganguly visited South Africa in 2007, the country’s topography and wildlife made such an impression on the communications professional that she couldn’t wait to come back. Ganguly got her wish six years later – thanks to a stable rand.

Foreign-bound Indian travellers such as Ganguly are realizing that holidaying in countries such as South Africa and Australia offers value for money as their currencies have been largely stable in recent weeks and haven’t appreciated as much against the rupee, when compared to the dollar or the euro.

Data shows the South African rand and the Australian dollar have gained around 10 percent since May, compared to a near 30 percent surge in the U.S. dollar which hit a record high above 68 per rupee on Wednesday.

Bharti Airtel, NTPC top Sensex losers this week

By Sankalp Phartiyal and Ankush Arora

The BSE Sensex recovered on Thursday and Friday after the index lost around 700 points in the first three trading sessions of the week. However, the index still ended down 0.4 percent as a weak rupee, concerns over foreign flows and uncertainty over the end of the U.S. Fed’s stimulus plan kept investors on the edge.

As a worsening current account deficit and inflation loomed large, the rupee hit fresh record lows below 65 per dollar in the week ending Aug. 23. However, gold prices and bonds rallied.

Fitch Ratings has warned Asia’s third-largest economy of a downgrade if the government fails to soothe tensions in the financial market. JP Morgan and HSBC downgraded Indian shares to ‘neutral’.

from Pakistan: Now or Never?:

Despite rising India-Pakistan tensions, little planning for the next big crisis

In the very early days after the Sept 11 attacks on the United States, some in India, for the briefest of moments, believed Washington might be coming around to its point of view: that the problem and source of “cross-border terrorism” lay in Pakistan. Instead, an aggrieved India was forced to look on as Washington turned to its old ally Pakistan to help it fight the war in Afghanistan.

It was in that sour mood that New Delhi reacted with increasing anger to Pakistan’s support for Islamist militants targeting India in Kashmir and beyond. In October 2001, nearly 40 people were killed in a suicide attack on the legislative assembly of Jammu and Kashmir state in its summer capital Srinagar. When militants attacked the Indian parliament in Delhi on December 13, 2001 - an attack blamed on the Pakistan-based Jaish-e-Mohammed - India mobilised for war.  Soon close to a million men were deployed on either side of the border in a tense standoff that was not resolved until the following summer, and only then after intense U.S.-led international diplomacy.

To those of us who witnessed the build-up to the 2001-2002 standoff, the rising tensions between India and Pakistan - with both sides accusing the other of escalating fighting on the Line of Control dividing disputed Kashmir - bear a troublesome resemblance to that time. Then and now are bookended by the U.S. presence in Afghanistan which began in 2001 and is due to end in 2014.

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