The moment I started writing this article...it was like...long time no see....

Starting from the time of election polls when the whole nation was gripped in the euphoria of Modi Wave...

The expectations of delivering and meeting the Aam Admi Expectations were at their all time high levels after considering the track record of Modi Regime....

Also the reforms taken in the past few months on the policy making and structural front of the country brought a rejuvenation.

This was the best time to make a common man happy as the falling oil prices have made the government's task much easier on macro-economic front, (inflation, fiscal deficit and current account deficit).

Few things which would have been highly appreciated :
Less of manufacturing prices as WPI and CPI numbers are declining and also it will help middle class people to ease out on their pockets...
Tax exemption and deductions in Section 80 C, Payment of Premium will help in more of Domestic Savings and will lead to further investments
Increase in Home Loan Interest Limit to give impetus to the housing industry, thus boosting the economy in the long run.


This Union Budget 2015 was a Litmus Test for Modi Sarkar to "Make In India"

That was a very short abstract from the expectations front...

Few of the achievements made :

* Financial Inclusion - 12.5 crores families financially mainstreamed in 100 days.

* Transparent Coal Block auctions to augment resources of the States.

* Swachh Bharat is not only a programme to improve hygiene and cleanliness but has become a movement to regenerate India.

* Game changing reforms on the anvil: . Goods and Service Tax (GST) . Jan Dhan, Aadhar and Mobile (JAM) - for direct benefit transfer.

Now if we move on to what did Budget 2015 brought for us...

The middle class and the common man had a lot of expectations from this, the budget is progressive in nature and supplements India's growth path, which would eventually benefit the citizens. Thus, it appears to be a case of short term pain for long term gains....

The major updates are as follows :

• Tax exemptions for health insurance premiums, senior citizens, differently-abled persons, pension contribution
• The transport allowance for salaried, which currently stands at Rs 800 per month was increased to Rs 1,600 per month.
• Encouraged by the success of the Pradhan Mantri Jan Dhan Yojana, the Finance Minister proposed to work towards creating a universal social security system for all Indians, specially the poor and the under-privileged for that Pradhan Mantri Suraksha Bima Yojana will be launched to cover accidental death risk of Rs 2 lakh for a premium of just Rs 12 per year.
• Similarly Atal Pension Yojana and Pradhan Mantri Jeevan Jyoti Bima Yojana will be launched.
• no change in the rate of personal Income-tax. 
• Another innovative method of monetizing gold which will replace both the present Gold Deposit and Gold metal Loan Schemes.
• This scheme will allow the depositors of gold to earn interest in their metal accounts and the jewelers to obtain loans in their metal account. Banks/ other dealers would also be able to monetize this gold.
• Also development of an alternate financial asset, a Sovereign Gold Bond, as an alternative to purchasing metal gold will happen in near future. The bonds will carry a fixed rate of interest, and also be redeemable in case in terms of the face value of the gold, at the time of redemption by the holder of the bond.
• With a move to up the employability of youth, the government will launch a National Skills Mission through the Skill Development and Entrepreneurship Ministry which will help in Job creation via Make in India.

A glimpse from Vision for "Team India" led by PM


* Housing for all - 2 crore houses in Urban areas and 4 crore houses in Rural areas.

* Basic facility of 24x7 power, clean drinking water, a toilet and road connectivity.

* At least one member has access to means for livelihood.

* Substantial reduction in poverty.

* Electrification of the remaining 20,000 villages including off-grid Solar Power- by 2020.

* Connecting each of the 1,78,000 un-connected habitation.

* Providing medical services in each village and city.

* Ensure a Senior Secondary School within 5 km reach of every child, while improving quality of education and learning outcomes.

* To strengthen rural economy - increase irrigated area, improve the efficiency of existing irrigation systems, and ensure value addition and reasonable price for farm produce.

* Ensure communication connectivity to all villages.

To make India, the manufacturing hub of the World through Skill India and the Make in India Programmes.

* Encourage and grow the spirit of entrepreneurship - to turn youth into job creators.

* Development of Eastern and North Eastern regions on par with the rest of the country.


However few major challenenges

1. Agricultural income under stress
2. increasing investment in infrastructure
3. decline in manufacturing
4. resource crunch in view of higher devolution in taxes to states
5. maintaining fiscal discipline

But all of that can be achieved and that the dream of Make in India can be fulfilled through apt Fiscal Roadmap, Good governance, Safer and Greener India....

So before commenting about others, we should promise and contemplate that how we gonna change ourselves and contribute to  make India the best nation....

Facebook says..WhatsApp I like..!!!

Year 2014 marked another noteable Facebook-Watsapp deal with a staggering amount of $ 19 billion and also dwarfed Facebook-Instagram deal which amounted for $ 1 billion in 2012,Microsoft-Nokia deal summed to $ 7.2 billion in 2013.

WhatsApp being a booming smart phone service founded by a former employees Brian Acton and Jan Koum which grew in just five years.The WatsApp model is the best communicator of 21st century to stay in touch with friends,family and share images,video,audio.
WhatsApp is reported to have more than 450 million users and said to handle more than 10 billion messages daily effectively handled by 55 employees.

Interestingly out of which 100 million active users are from India due to penetrated smart phone network.


Facebook is placing a $19 billion bet on reaching its next billion mobile users with the acquisition of WhatsApp. The components for aggregate deal will be somewhat like paying $12 billion in stock and $4 billion in cash for WhatsApp. In addition, the app's founders and employees(55) in all  will be granted restricted stock worth $3 billion that will vest over four years after the deal closes.

Effectively spending $ 42 to acquire one WatsApp figure,quite a whopping figure I must say...

There have been endless talks among half of S & P 500 companies that Facebook is paying more than half of what WhatsApp is actually worth for. Reason may be  Facebook wanted to keep WhatsApp out of the clutches of Google...Anyways its share price is all time high so it has not much too lose and its merely a fraction of  company's valuation.

According to Mark Zuckerberg,their motive is to make the world more open and connected. We do this by building services that help people share any type of content with any group of people they want. WhatsApp will help us do this by continuing to develop a service that people around the world love to use every day.And also WhatsApp has blistering growth world wide.
Being one of the most successful and far sighted founder at the age of 29,Mark also added WhatsApp will continue to operate independently within Facebook.
One of the major upcoming expected would be complimenting Facebook Messenger for communicating with all of the contacts and small groups of people.
However some of the things which can be integrated can be Detailed registration – collecting user information,Advertisements as Facebook makes plenty of cash from advertising,incorporating feature of real time location and most impotantly upgrading users.


Facebook is also keeping an eye on SnapChat,other popular Chat App...

With all these deals going on its creating a strong foundation in world of Technology,Gadgets and pre dominantly in minds of people across the world..

Ecstatic Rally in Dalal Street....

Before the poll results,Economy was expected to go up and down on a see-saw,swing like a pendulum and experience a  somersault as welll....
BJP and AAP after reflecting an overwheling majority,took sensex to a level of 21326.42 up by 329.82 with an intra day increase of 487 points.

The outcome of election results are in-line with what the global brokerages have been hoping for.
Stocks belonging to the capital goods, infrastructure and power sectors are likely to benefit from new policies to kickstart growth. Groups like Adani and Reliance and various infra and power companies would get a chance for job creation and infrastructure revival.
Moreover they will focus on the stalled power projects.and already Ambanis and Bharti Airtel have entered into an collaboration partnership of 4g Services.
However Banking Sector is likely to benefit the most,as in even today ICICI Bank(+5.16%),HDFC Bank (+4.5%),Bank of Baroda(+2.09%),Axis Bank(+1.72%)
Talking about the Rupee Rally,it got strengthened after taking cues from capital market and a lower current account deficit(imports-exports) which is expected to fall to 3 %.Foreign institutional investors invested Rs 1,100 crore in the equity market today. RBI has mobilized $34 billion from the swap window under foreign currency non-resident deposits funds(Fixed Rate 3.5 % p.a.) and overseas bank borrowing.

Though rupee is likely to gain from the inflows and gets stronger.
Now the question is "Will the phenomena called "NAMO" and "Arvind Kejriwal" will bring a spectacular change in India or market is reading just too much...."

Receiving a tinge of sarcasm from people around e.g just as P Chidambaram did by contradicting Modi's statment of increasing inflation due to imported gold which worsens our Current Account Deficit.As Chidambaram believes it is because of corruption.

Apart from this India has been seen by global investors to invest their money aggessively in India,GDP growth better than the second quarter,fundamentals of global economy have improved e.g Bond Buying ($ 85 billion) programme by U S federal,7 Percent Unemployment rate.
So to conclude I would say one should be cautious while investing and also we have our eyes on
events such as the RBI monetary policy in the third week of December and the imminent Fed tape which would impact the market cycle again..

Take care...Keep Smiling... :)

Coming Back....

Hiee friends...its been long i did not write anything...

Economy faced a blood bath,bullish traps n bearish trends....

Along with that arrival of an visionary, Mr.Raghuram Rajan..

If we see as of this week Sensex reached 20,000 nifty rallied 555 points in a week...
and most importantly Rupee which was bleeding profusely,pacified at Rs.64,there's been discussion of reducing Petrol Price by Rs 1.50/Litre

Rajan's magic worked on markets because he is into the rationale that India needs a logical change.He's someone who has arrived without bureaucratic baggage who really intends to inculcate Financial Sophistication in India.
Rajan is a perfect combination of Academic Pedigree as well as an Financial Economist.
The reasons why we can expect a Transforming Change is:-
1.Targeting Inflation

2.New Bank Licences-The NBFC' s and Corporates will be getting Banking Licences in Jan 2014 which will bring various growth and job opportunities in Banking Industry.

3.Currency Measures-A fixed rate swap for FCNR(foreign currency non repatriate) which were dollar dominated will be @ 3.5 % for 3 year deposits thereby welcoming foreign investments in our country.

4.Overseas Borrowing Limit for banks-The limit has been increased from 50 % to 100 %

5.Priority Sector Lending and Working on Non-performable Asset situation in the country.

Rajan saws the fault lines in the system,provides a comfort that the broader markets will be taken care of. He had laid down a three year agenda on rupee internationalization
Other thing he has proposed Inflation based index tied to consumer prices which will give a better impact on the outlook on Indian Economy and how consumers dealing with the prices.
Booster Dose for the rupee will be injected by doubling the borrowing limits may be used by private banks to raise US dollars via Bond Sales and the estimates could fetch $ 25 billion.
An enhancement in overseas borrowing would means additional borrowings possible for banking sector in foreign currency.

Hopefully we'll improve on Oil and gold prices and improve the current account deficit and the situation of our country in International Parlance.

Have a great time ahead... n cya soon....

Impact of Obama's triumph on India

Impact on India
Focusing on the economic interests alone, Indo-US relations are in for a long haul.
Our bilateral trade is expected to cross a record $100 billion this year and more importantly a huge number of Fortune 500 companies continue to have strategic business interests in India with perhaps the highest exposure in the Indian IT Industry.
But Obama has set a limit of 65,000 on H-1B visas for software engineers to enter the US, and India's share in this is just 7%. Moreover, Obama has cracked down on L-1 visas — Infosys  complains that half its applications for such visas have been rejected. Obama's victory means India will face four more years of anti-visa pressure. He also wants to discourage US investment abroad of the sort that exports jobs. India has been the recipient of precisely such investments — IBM and Accenture now have more employees in India than in the US. Stiffer tax rules on such companies could impact future investments.

Obama prides himself on being a green enthusiast. There is growing green pressure in the US to oblige India and China to slash carbon emissions, which are growing because of rapid increase in coal-powered electricity. US greens want new trade barriers against countries whose imports are competitive because they have lighter environmental standards (especially on carbon) than the US — the greens call this environmental dumping. Obama will seek stronger action from India and China, but it remains to be seen how discomforting that is.

Collaboration is key to survival in today's uncertain world. I hope in the 45th tenure of US Presidency this one thought will reign supreme above all lines..:)

Obama back with a bang.. !!!

US elections are culminated with the victory of Barrack Obama.Winning of Obama marks innovation in the US is good for the US, but it is also good for the rest of the world, as computers, mobile phones and the internet, for example, demonstrate. Obama stands for inclusive growth, accommodation of immigrants and equality of opportunity, and Romney stood for the opposite.
Now it can be expected that the fiscal cliff($600 billion) i.e. combination of expiring taxes and overboard government spending cuts will be fixed by working on monetary policy,easing interest rates and quantitative easing(QE).As the president will do something to minimize the effect of tax increases and spending cuts.
All over the world markets and price of different commodities increased, Dow Jones
industrial futures up 0.1 per cent to 13,213 and S&P 500 futures adding 0.1 per cent to
1,426.90. Britain's FTSE 100 rose 0.3 percent to 5,899.13. Germany's DAX rose 0.6 per cent to 7,419.95. France's CAC-40 rose 0.8 per cent to 3,507.30. Crude oil jumped to $88.72 per barrel,the euro rose to $1.2845.
A win for Obama is a positive for the capital market as that would ensure flow of Foreign Institution Investors(FII) money into India by continuing the QE thing which allows buying of shares worth $40 billion per month ensuring enough liquidity.
Obama's victory means that the hope of disciplining global finance stays alive and that fiscal policies will be more responsible and supportive of near-term growth.
Obama's foreign policy, too, is more  adaptive to the more dispersed nature of global power.
Below is a breakdown of the possible implications by sector:-


1.Alternative Energy: Obama has said he will continue to support development of renewable energy technologies such as solar and wind, but he will need the support of Congress to extend or renew tax breaks that have underpinned the growth of those industries.

2.Healthcare: Hospitals and health insurers will benefit from the phased-in implementation of Obama's healthcare act, which requires most individuals to have health insurance.

3.Rundown: Under a Democratic government the industries most likely to benefit include healthcare facilities and services, food and staples retailers, home-building and life sciences tools and services.

4.Education-Govt will back taxes to avoid education cuts,less college costs,easy  funding in education/training programmes so that more people have an opportunity to be educated so that they can really be qualified thoroughly in their area of work.

Hiee friends ....
wats up... :)

Recently we saw a hike in diesel prices and some changes in FDI(Foreign Direct Investment) policies
Increase in diesel prices by Rs.5,limiting the supply of LPG cylinders to 6 in a year,clearance of 51 % FDI in retail sector,Policy Changes in Aviation Sector,Rate changes by RBI.
There were protests all over the country by the public as well as opposition parties.

The reason RBI and policy makers gave was primarily to consolidate fiscal gap(Difference between earnings and expenditure)
On the government decision to allow FDI into multi-brand retail, it has been said that it will create an opportunity to improve infrastructural facilities in the agricultural marketing field which may ultimately lead to price reduction,due to wide variety and easy availability.And also it will strengthen our growth process and generate employment in these difficult times

But we see from a different prospective,it will push up inflation in the near run.For Example,Diesel hike causes Rs.1200 crore burden on Indian Railways,yearly.

Whats new is Mamta Bannerjee protested to take her support back,but today when Samajwadi party lended its support.
As a result Sensex closed after rising 403 points at 18752.
Tomorrow there's a news that our PM Dr.Manmohan Singh is going to give a message that why this diesel hike and other changes are being done.The Prime Minister is also likely to explain the reason behind the hike in diesel prices citing under recovery by oil marketing companies. He could also put forth the government's stand on capping the number of LPG cylinders to six per annum.

Singh would also touch upon various economic reforms being pushed by the UPA government.


But if these reforms will continue at greater pace,then it will surely create problems for Indian Public and growth of the country.

India's Growth Story

India's Growth Story...during the last week there were some important decisions held in Indian Political Ministry in which one was making Mr.P Chidambaram as the finance minister of India who has rescripted the rules for elevating the economy...the initiatives will include disinvestment in infrastructure and power and energy .There have been power projects totalling 18,000MW which are not getting executed and many more like that....they are facing
problems ranging from ranging from non-availability of coal to environmental clearance.
Coal India, which has near-monopoly over coal mining in the country, has been unable to increase production to keep pace with the rapid expansion in generation capacity, particularly by the private sector. Problems related to land acquisition have also hit mining.
other reason would be following global trends...


India need to follow its own path and not global trends...India should promote rapid urbanization and expansion of manufacturing.
The government is considering higher rural spending, a sugar export tax and zero import duty to mitigate the impact of a drought.Along with that  India has the highest savings and investments rate in the world,projecting GDP at 6.5% for this fiscal. India still has some advantages, including the fact that it is starting from a low base, with an average income of $1,500. It's always easier to catch up from a low base, and some Indian states are indeed showing real dynamism.
Of the 180 economies tracked by the IMF, India ranked 29th in terms of its average growth rate in the 1980s, 27th in the 1990s and 26th during the last decade which is a proud fact.
:):)

Economic Crisis and Recession 2012

Hey friends….

Hope you all doing great…

Sorry for not writing any post for so long…. And moreover I was finding to write something persuasive other than this crippled economy news….

Indian Economy has been slowing down due to global implications....India’s currency, the rupee, is falling; investment is down; inflation is rising; and deficits are eating away at government coffers.

You all might be aware of what’s happening…western countries and euro zone have been confined in their own situation where are not able to generate enough of capita, as expected in their GDP’s. Indian IT Cos are the ones who are the most affected victims of this situation…

Many of the Economists and Entrepreneurs can prognosticate a dreadful economic era coming…

The chance of a double-dip recession is increasing because of risks related to ending global monetary and fiscal stimulus.

The factors which are aggravating the situation are tax increases and spending cuts in United Sates that may push the world's biggest economy into recession, the job market never left the recession to begin with.  Over four years have gone by since 2008, when the U.S. hit its employment peak;

 A hard landing for China's economy as China posted a three-year-low growth rate of 7.6 percent in the second quarter after 2008 recession. In China Car sales are down, cement production is down, steel production is down, construction stocks are down. In short vastly overblown;

 Further slowing in emerging markets; and a military confrontation with Iran.

When it comes to Indian economy it is still expanding, with growth projected between 6 percent and 7 percent this year. Indian business leaders, foreign investors and analysts say India’s strengths are being undermined by growing political dysfunction. Foreigners are also pulling back their investment in Indian stocks and bonds totaled only $16 billion in the last fiscal year, compared with $30 billion the year before. Structural reforms needed in India to boost growth as in merging the fiscal gap that is uniting the difference between earnings and

expenditure, enough combination for raising revenues and have a more efficient tax system...

Rest I’ll come back with another post stating further about Indian Scenarios...

Take Care

Stay Blessed... :)

Petrol Prices

Hiee friends… J

Great to see you after such a long time…my Internship experience in Mysore was amazing… J It was a wonderful journey..

But I missed writing blogs…

The day I came back…I was stunned because of…

Stature in petrol prices…

In the present scenario, India is subjected to face the massive petrol price hikes which have shaken off common man. Striking increase of Rs 6.28 per liter which amounts to an increase of about Rs 7.5 after including the taxes. The hike will be between Rs.7.54 and Rs.7.98 in the four metros and would be higher or lower in other.

The main reasons for hike in fuel prices are,

A) Global increase in prices of crude oil which inevitably increases prices in India.

B) Another reason is purchasing power (difference in exchange rates/currency rates), the value of rupee is downsized considerably in terms of dollar.

Currently 1 USD=Rs.56.23

USA supplies 45% of Indian Oil demands.

I’ll update another blog post on the differences in currency.

Earlier if we were paying Rs.50 or something, now we’ll have to pay Rs.56 which leads to hike in prices..

C) And if there’s any scope left, that is taken up by Government of India. As they don’t provide non-Government Oil Cos with any subsidies on petrol products as given to LPG, diesel and kerosene. So oil companies are bound to increase the petrol prices and some of them have even closed their outlets.

D) Last but not the least VAT (Value Added Tax) 25-30 % cost is added to the actual value.

·         Excise duty  : 14.35 rupees per liter

·         Customs duty : 7.5 percent

·         Sales tax or VAT: 20 percent.

Deregulation in oil prices-in India oil prices are regulated by government; no private company can sell it on their market prices. In this cases if certain amount of price is lost, then that has to be paid by Govt...But recently Govt. has stopped providing them with the subsidies, so companies can themselves decide the prices. So in this case companies have the power to decide the price themselves. Every fortnight, all the oil companies will meet and revise the prices based on the market situation. The gloomy truth is that, this will not be suitable for India because in India most of the people are poor and they cannot tolerate the high inflation. In the coming days, there is a proposal to deregulate the prices of Diesel and Cooking gas. If it happens, cooking gas price will be Rs.800 per cylinder.

When economy is recovering and in the growth path, the demand for crude oil price is more.

According to the recent news, the prices of petrol will be DECREASED by Rs.2 from this midnight…

Hope to see further deductions… J

Hi friends...
In this post I am going to tell you about Cyrus Pallonji Mistry,the anointed successor of Tata Group succeeded by Mr.Ratan Tata.
The history of tata group is as follows..:-
Jamsetji Nusserwanji tata-(1887-1904)
Sir dorabji tata-(1904-1932)
Sir nowroji saklatvala-(1932-1938)
JRD tata-(1938-1991)
Rattan Tata-(1991-2012)
And now Cyrus Pallonji Mistry who has the responsibility of Tata sons which has 100-odd companies withing the group,with revenues of $83 billion.it controls 31 publicly listed companies with a combined share holder wealth of $77 billion.
There have been rumours that Noel Tata could be the new successor, In the end, he lost out to his brother-in-law .The reason given for that was that Noel Tata could expertise his skils only in retail marketing.
And Cyrus Mistry has multi-faceted business expertise. He’s a commerce graduate from the University of Mumbai, Cyrus Mistry went on to pursue an engineering degree from the Imperial College, London, and master the science of management at the London School of Business and he he joined as a board member of Tata Sons in September 2006.
Mistry is also the chairman of Afcons Infrastructure, which is into mega civil and engineering projects. He is also on the board of various major companies. He has served as a non-executive director of Forbes Gokak Ltd. and was associated with Convergence Media Pvt. Ltd. as senior vice president, operations and planning, and UTV Toons India. He has over two decades' experience in the Indian entertainment industry in the fields of filmmaking and animation, technical and production pipeline management.
Now comes the question whats in store for Mr.Pallonji ??
The big players are namely
Tata Motors
Tata Steel
Tata Consulatancy services
Tata Power
Tata Communications
Tata Chemicals
Tata Industries
Tata Global beverages
Voltas
Tata Teleservices
The starting journey can be a little difficult because the world has dramatically changed and continues to change, with the next decade being characterized by slow growth and Globalization is like gravity. You can't deny its existence, you have to harness its full potential  and Then there are three significant roadblocks in front of India as a country - corruption, infrastructure and poverty. What must the Indian corporate do to alleviate poverty , attack corruption and build world class infrastructure? The Tata Group has a rich history, enormous capabilities and a strong balance sheet. Mistry has to build upon the enormous assets of the Tata Group as he reinvents the company.
Hope for the best for Ratan Tata's successor at Tata Sons & Pallonji group scion who is going to be a legacy in Indian economy…
Take care…

Rupee and dollar conundrum…L

Statistics for today-

Sensex down by 365 points and few days back it was down by 425 points and we can see some further drop also..

1 Dollar is at rs.52

Now what is driving this rush in rupee-dollar…???????

Tentatively supply and demand fixes the value of dollar. In the market if rupees are more and dollars are less, then price of dollar will automatically go up.

The rupee is under pressure as foreign investors are paring their exposure to Asia's third-largest economy amid global uncertainty and mounting worries over the domestic economy

The main factors that influence the value of currency are:-

First factor: Expected “inflation” difference between two countries….inflation causes money to lose value over time, and now more of people wants to hold dollar and since the inflation rate is lower in USA, people wants to hold more of dollar and so it will be worth more if currency is converted to dollars.

And dollars has the universal acceptance so everyone wants to sell rupee and buy dollars.

Second Factor: GOLD

How gold affects currencies

All the currencies are backed by gold,and  a country that exports gold or has access to gold reserves will see an increase in the strength of its currency when gold prices increase, since this increases the value of the country's total exports.

Interest rates and economic durability also play a role in exchange rates.

By economic durability I mean the ability of an economy to react and adjust to acute and chronic disturbances in the most efficient manner.

Effects

Software exporters gain
Indian companies selling their services abroad too stand to benefit with each appreciating dollar or any other currency which is on the rising spree against the Indian rupee. IT major Infosys and Tata Consultancy are among some of the companies, which sell their services abroad.

But fall in rupee is likely to affect a vast majority on Indians in the form of higher oil prices. Since India depends on imports for 80 per cent of petroleum products requirements, rise in oil import bill will be passed on to the consumers. In fact, oil companies cited depreciation of rupee as the main reason for the petrol price three weeks ago. 

If rupee continues to fall, the government could be forced to raise prices of diesel, kerosene and LPG, adding to the overall inflation further.   

Those planning to buy consumer durables such as cars, television sets, computers, mobile phones and the like should also finish shopping fast as imports of raw materials for these articles are expected to cost more with every rise in dollar as appreciation of the currency putting severe pressure on companies which import substantial amount of components from overseas. 

and even some of you who are planning for MBA/MS abroad..its gonna cost more..

hope that economy handles this time well..

take care..:)

Hey friends..
Wishing you a Happy and Prosperous Diwali...:)
Apart from Diwali what other things which is going on....CAT,GMAT etc etc...
But what about jobs which we think are hit very badly due to the adverse conditions going in Global Economy..
According to the latest news and data received by Bank of America and other agencies  United States will likely suffer the loss of its triple-A,credit rating..which would be second downgrade..
US deficit will be around $1.2 trillion by november 2011.
in this year 2011 their GDP was as follows:-
2nd quarter 2011: 1.3 %
1st quarter 2011: 0.4 %
Their trade deficit for month of august 2011 was $45.6 billion
If I elaborate it more it would be something like
Total August exports of $177.6 billion and imports of $223.2 billion resulted in a goods and services deficit of $45.6 billion.
High unemployment rates,sovereign debt concerns, slowing growth, and political activism in many countries are generating opposition to outsourcing.
One of the major sector would  be IT(information technology).But as far as our scenario is concerned it would be hit somewhere around 25% or may be a little more than that...
However, the country's two largest software exporters, Infosys and TCS, remain confident of withstanding another downturn.
"It is too early to say. There are fears of another recession in the US and a debt crisis in Europe," Infosys CEO and MD Kris Gopalakrishnan said.
If I go into details these big players like TCS,Infosys,Cognizant,Wipro sees no proper cause of worry due to recession.
Infosys Ltd , India's second-largest software services exporter, expects revenue growth of 15 to 20 per cent in its business process outsourcing (BPO) arm this fiscal year.The outsourcing industry lobby group National Association of Software and Services Companies (NASSCOM) figured export revenue growth surge of 16 to 18 per cent for the year to March 2012.India's outsourcing sector, which employs close to 835,000 people and accounts for more than a third of the global back-office market, generated export revenue of $14.1 billion.
The largest Indian IT companies have strong margins, are cost-competitive, and have proven delivery models. These attributes will help them to weather uncertain and volatile demand.
so i guess we should not worry about anything..be optimistic...
n Enjoi...again wishing you a safe and Happy Diwali..tc..:)

The legacy a true leader would like to leave behind is that we would like to make a difference in the quality of life of the people...
We lost a legendary leader on 5th oct,2011 who does not require any introduction..Mr.Steve Jobs
The backbone of Apple Corporation who made so many remarkable changes in technology and brought a revolution in gadgets..let it be i-pods,i-phones or i-pads...
Steve Jobs who used to think differently and who have an edge above all...
He made digital technology made familiar among the masses,his elegant products captured The world wide attention..
The noteworthy products launched by Steve Jobs are :-
1.Apple II Personal Computer-june 1977
2.Apple Lisa II Personal Computer-this was name after job's daughter..it didnt succeed because it was very expensive..1983
3.The Apple Macintosh-this introduced the graphic user interface to the world in year 1984 and marked the beginning of personal computers and inspired the upcoming of other operating systems.
Due to some ineffective cost operations,he hired John Sculley from Pepsi..but While Jobs was a persuasive and charismatic director for Apple, some of his employees from that time described him as an erratic and temperamental manager. An industry-wide sales slump towards the end of 1984, caused a deterioration in Jobs's working relationship with Sculley as well as layoffs and disappointing sales performance. An internal power struggle developed between Jobs and Sculley..After battling with CEO John Sculley for control of the company in 1985, jobs resigned Apple Corporation n den return again in 1997..
In between jobs brought the graphics group later named pixar and made many changes in animations and graphics of many holloywood movies..
and when he joined Apple Corporation again in 1997 and in near 2000's and after that came i-pods,i-phones, and i-pads which we all are familiar with...
and you people probably know more than me...
One of Jobs greatest accomplishment was to combine things in ascetically pleasing ways. For instance, the iphone is a: phone, mini-computer, camera, video recorder, and organizer. And if we include apps, then it is so much more - a translator, dictionary, cook book, game console, etc. It also looks great. To do this required incredible creativity. He was a genius. He will be missed...

Markets in Blood Bath.....:(

Today Indian Markets plunged again by 704 points after 2 years.
SENSEX-16361
NIFTY-4923
Its second lowest in history of Indian Markets after the downfall by 800 points in 2008 on account of Satyam Scandal and US recession (Lehman Brothers Collapse)...
this world economy will take us no where...USA as we know is already in double dip recession,taxes are not being paid,jobs are slashed.
Recently,in a meeting of federal open market committee they discussed the negative outlook which they are observing
Next if we talk about euro-zone there  policymakers have repeatedly followed the wrong policy shifts, creating a situation in Europe "more dangerous" to the global financial system.
Economists and Chinese officials have widely predicted China's growth will slow, largely because of waning exports and like India ,China's central bank has raised interest rates five times on account of inflationary measures.
European markets like France's CAC, Germany's DAX and Britain's FTSE were down 4% each, at the time of closing of Indian equities. Asian markets closed 2-5%. The Dow Jones futures fell 1.5%.
The depreciating rupee is a factor that is working against India,today rupee closed at 48.96 per USD which will affect Indian imports drastically.
Gold prices fell by Rs 160 to Rs 28,340 per 10 grams.If we see the precise numbers  investors suffered a whopping loss of over Rs 2 lakh crore in the stock market.
phewwwwww..that was all for today which was I guess a total noteworthy day...
I wish this festive season will bring a positive uptrend in markets...
God Bless..
take care..:)

hiee friends...
first of all..A good news..I am placed in Infosys....
now next thing comes...where are we heading too..not we actually...our economy specially Euro-Zone and USA.......Euro-Zone is on the verge of collapse..
the pressure if we see is increasing tremendously...the reasons may be
1.Market pressure on Italy and Spain rises with borrowing costs 
 2.The United States' top credit rating is cut for the first time ever, triggering turmoil on the financial market
3.Concerns emerge that France could be the next country to suffer a top credit-rating downgrade.
4.European stocks have tumbled by about 4.0 percent. and Euro zone inflation steady at 2.5 per cent
5.Gold jumps to a record high price of $1,921.17 an ounce. 
6.Greece announces new budget cuts totaling about two billion euros, with renewed rumours of a debt default or Greece's possible exit from the Eurozone. 
7.The eurozone's current account balance worsened in July to a deficit of 12.9 billion euros 
deficit-difference over earnings and expenditure..i.e, earnings is less by 12.9 billion euros than expenditure...
hope I made my point clear...
n the question..what's aggravating the situation ..??
Italy -- the euro zone's third largest economy but these Italy's struggling to get back the investor's confidence and moreover they have asked help from China.So that China may buy Italian assets and stabilize the euro-area.According to the new data,Italy has sold its assets worth 3.9 billion USD.
Expert statements
Polish FM said "if the economic conditions would not recover ,then world war III is expected."


IMF chief Christian Lagarde said "our economy is a dangerous new phase,worsened by feeble political leadership, with deepening uncertainty over the most heavily indebted governments."


European Central Bank chief said "threats to the euro region have worsened and growth rate is reduced to 1.6 %.
Now comes the other news which came into picture was...Other Countries are saying that Greece must exit from euro-zone.
For recuperating from this crisis a strong base is needed.The most strong economy is euro-zone is Germany and second is France. They have already given certain bail-out packages for this crisis and they have ensured their further support too along with that The IMF is taking a key part in last year's 110 billion euro ($151 billion) bailout of Greece, but is still analyzing Athens's progress before releasing a new tranche of funds to the government. 
Let's hope the situation does not get bad to worst...
Take Care...:)

Hey friends..

Hope you all are having great time...!!

So wats up these days....

rather my question should be...

Whats up with Slow down or Recession that was expected..??

First talking about the Recession or Slowdown that has hit the economy world wide let it be USA or Euro -Zone..

In the last post as I stated that S&P has reduced USA ratings from AAA to AA+ on account of debt-ceiling crisis..

One thing I can Say is US, European economies still tenous. In USA The growth expectations are downgraded because of expected slower pace of income and spending growth and the rate of U.S. hiring slowed and the jobless rate,exceeds 9 percent.

About Euro-Zone crisis I can say that The GDP growth estimates are reduced by a full percentage point for this year and the next year owing to softening domestic demand in the core countries. This could affect the euro area as a whole, slowdown in global trade momentum marked by deceleration in manufacturing indicators, difficulties faced by banks in accessing term funding at reasonable rates and likelihood of increased funding costs that could impact investment projects.

The saviour factor for USA would be last round of Quantative Easing(QE),which will keep the interest rates low till 2013 and thereby lifting the economy and Federal Cheif Ben Bernanke has stated Strong fundamentals will drive US out of recession.Their exporting market is largest,and the recovery there is modest.

and the redeeming factor for Euro-Zone would be they have taken very important steps. Many countries have announced additional austerity measures and are accelerating their deficit cuts. The other thing they have done is to agree to increase the flexibility of the European stabilisation fund and according to European Financial Stability Fund and Deutsche Bank central bank toolkits will be able to keep banks alive, at the cost of interest margins and reduce the amount of investment funds that are borrowed.There banks may likely face some problem but Liquidity crisis unlikely to hit European banks.

and and and other thing..gear up for placements..All the Best...Do well..!!!!

There is an old saying on Wall Street that the market is driven by just two emotions: fear and greed.

One of the best sayings by Warren Buffet is :"Be fearful when others are greedy, and be greedy when others are fearful."

The situation may be critical to understand but then the message conveyed over here is that

Scenario 1

When people are greedy and things go higher.There is a desire in people to make money which ends in selling and when it reaches a saturation level.It starts coming down.Investors get caught up in greed (excessive desire).

Scenario 2

In simple words I can say that the lower things go, or When stocks suffer large losses for a sustained period, the overall market can become more fearful of sustaining further losses and taking advantage of such situation an intelligent investor can buy.

In my previous post as I said USA will lose its AAA rating that means the best one..

It happened actually S&P has reduced their ratings from AAA to AA+ which resulting in plunging of stock markets world wide.

Now i think i should throw some light on AA and AAA+

What Does AAA Mean?

It means the country who holds this rank has extremely strong capacity to meet its financial commitments. 'AAA' is the highest issuer credit rating assigned by Standard & Poor's.

what does AA+ means ?

The meaning remains almost the same but it shows high quality, with very low credit risk, but susceptibility to long-term risks appears somewhat greater.

and the bottom line is whether US hold an AAA or AA+ rating, the difference didn't seem to matter and chances of recession happening are 1 in 3 in next coming 6 months.

As far as Indian markets and companies are concerned I think they just over-reacted to the US downgrade.

But they recovered well which was driven by a combination of factors:

The government's efforts to reassure the market with talk of the limited impact of the downgrade on our own growth, some dutiful buying by domestic state-owned players like LIC, UTI and nationalized banks.

Moreover we don't have depreciated currency value and reserves like USA.

Indian economy as well as the world economy wont be hit so hard with this event.Although I came across the fact that hiring by Indian IT's and other banks will be reduced only by 10 % on account of this world crisis.

But this wont have much of the adverse effects on India..

So relax and we should be proud on what we are..

HAPPY INDEPENDENCE DAY...n good luck..:)

Hey friends..

Presently we can see us grappling with debt crisis...

When Bill Clinton left the white house the American govt had surplus..n so had the title of super power..but after that when George bush came into power the expenses were like

1.Medicine -$180 bn

2.TARP -$224 bn

3.Discretionary -$608 bn

4.Stimulus -$773 bn

5. Defense-$1469 bn

6.Tax cuts -$1612 bn

and the projected spending of Barrack Obama includes

1.Medicine -$152 bn

2.Discretionary -$278 bn

3.Stimulus Tax cuts -$425 bn

4.Stimulus Spending -$711 bn

What Does Default Mean?

In simplest words i would say the failure to promptly pay interest or principal when due..

What is Debt Ceiling ?

The legal limit on borrowing by the federal government.The United States Constitution gives the Congress the sole power to borrow money on the credit of the United States.Before 1917, Congress had to approve borrowing each time it came up. In order to allow for more flexibility as the nation entered World War I, lawmakers agreed to give the federal government blanket

approval for most types of borrowing — as long as the total was less than an established limit.

problems affecting now.The nation’s debt is nearly closer to the legal limit of $14.3 trillion.

In the near time if this will be breached then I think effects will be worst which includes:-

1.The new debt deal formed by Barrack Obama raises the debt ceiling by $900 billion to $17.7 trillion.

2.It cuts spending by $917 billion over the next decade and a special congressional committee will be assigned to find another $1.5 trillion in deficit savings by late November.

3.If Congress comes up with the savings, or passes a balanced-budget amendment to the constitution, the government will accrue another $1.5 trillion boost the debt ceiling - sufficient to pay the country's bills through 2013.

4.If Congress fails, the president will be granted a $1.2 trillion debt-ceiling extension - but automatic, government-wide spending cuts (half of which will come from the defense budget) will take effect in 2013. There will be no automatic tax increases.

But this debt crisis is the best thing that has happened in a very long time!

Why?

Because it woke up the world, especially Americans. We gazed in astonishment as the blind idiosyncrasy of the USA,unfolded. The truth spilled out, covering the loopholes of the government along with that USA is threatened to lose its AAA rating...basically world's super power rating essence on Indian Economy primarily US debt crisis unlikely to impact Indian economy but as far as I see the domestic economy is not insulated from the world economy, there will definitely be some tremors here in India. Both imports and exports will be impacted. India’s exports to the US, particularly IT services, will have an adverse impact.

Any slowdown in the US will have an impact on India in terms of our ability to export..as during 2008-09 there was a sharp decline in Indian exports..but at the same time we can see appreciation of the rupee, which in turn will help bring down the current account deficit...

But still we can see downfall of economy as well as politics tooo...

so hope for the best and next time when the share markets falls there is an amazing opportunity to buy and make profits...

good luck...take care...:)

Metamorphosis of Indian Economy

contd....

In 1991 when Dr. Manmohan Singh became the finance minister there were numerous changes which are as follows:-

1. Companies were freed from unnecessary restrictions and import of raw materials, machinery as well as consumer goods became much easier.

2. Foreign investment became popular leading to rise of foreign currency in India.

3. Securities and Exchange board of India (SEBI) and other Public Sector Units (PSU) also became integral part.

4. The term Liberalization, Privatization, Globalizationc(LPG) changed the aspect of Indian economy, because it restored the confidence of creditors and also maintained the currency reserves and rates.

5. Enhancing productivity promoting an employment oriented pattern of industrialization thereby attracting foreign investment.

	Variable	1993-94	1999-2000
1.	Total employment	375 Million	397 Million
2.	Unemployment rate as measured on the basis of current daily status C.D.S	6 %	7.3 %
3.	Rate of growth of employment per annum	2 % (1983-93-94)	1 % (93-94-99-2K)
4.	Number of employed workers in the agriculture sector in Millions	242	238

After that Privatization of banks and telecommunication sector flourished in the late 1990’s under administration of Mr.Vajpayee. India’s Gross National Income is only $477.4 billion till 2003-04.The real GDP growth in 2007-08 to be around 8.5 per cent before recession. Cities like NOIDA, Gurgaon, Gaziabad,Bangalore, Hyderabad, Pune, Chennai and Ahmedabad have risen in prominence and economic importance, become centers of rising industries and destination for foreign investment and firms.

Presently as we all know india is the second fastest growing economy after China and already the fourth largest economy in 2001 after the U.S., China and Japan.

As far as I see India would be the financial super power by 2040 because of its huge human resources, rapidly upcoming service sector, availability of large number of competent professionals, vast market for every product, increasing impact of consumerism, absence of controls and licenses, interest of foreign entrepreneurs in India.