Economic Boycott – Social Media has a new Tool

Snapdeal  is facing flak on Social Media these days after a controversial  remark made by  its brand ambassador Aamir Khan on growing intolerance in India. Mr. Khan said that his family contemplated leaving  India. And the unlikely victim of this whole saga  has been Snapdeal. The  e-commerce giant is bearing the brunt of people’s  anger in the form of App wapsi  & ratings downgrade. People vented their anger by  boycotting Snapdeal ,deleting its app & writing unfavourable reviews leading to its downgrade on Google Play Store. Here is a tweet by Suresh Nakhua 

Hashtags like #BootOutSnapdeal  & #Appwapsi  became the top  trends on twitter. The message was loud & clear - Hit the ecosystem where it hurts the most.

And certainly it hurt them as many ‘Thought Liberals’ jumped in to placate the common man hurt by Aamir Khan’s remark. Some tried to douse the fire by trying to delink Snapdeal from Khan’s comment. As Snapdeal started facing consumer backlash, many even questioned the legitimacy of this protest. Quite  evident from this tweet by Bdutt 

 Soon they were shown the mirror by being reminded about the Gandhian philosophy of “Non-cooperation” & economic boycott as a legitimate & democratic way of protest.

See these tweets from ggiittiikkaa  greatbong AviralKapoor_ Anil_Aarush heeraman98 

In the process, tweeples also exposed the hypocrisy of such “thought liberals”. 

Check these tweets by reviewero DavidBCohen1 NalinSKohli doctoratlarge .

So has Social Media got a new tool to fight against biased MSM & 'thought liberals' ? 

Much to the disappointment of many people, the answer is Yes.The Social Media is certainly responsible for amplifying the backlash which Snapdeal is facing.And it was only possible due to breathtaking power & speed of Social media because today everyone with a cellphone is essentially a reporter. 

So is it Good or Bad ? 

Well in my opinion it depends on the cause for which it is used.

According to an article by Wharton : " Social media outrage, it seems, is a beast with the fangs of a rattlesnake, and the attention span of a gnat."

Well Social Media is here to shape the socio-political envirnoment & this outrage is completely justified.

Why I trust the Leadership of Narendra Modi ?

Although ‘Leadership’ has been defined many ways but the simplest one is :  “Leadership is a process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task ’.  Fiedler contingency model given by Fred Feidler defines two types of leader : those who tend to accomplish the task by developing good relationships with the group (relationship-oriented), and those who have as their prime concern carrying out the task itself (task-oriented). Narendra Modi falls in the latter category. A man who believes in India first & whose single point agenda is development and has Arjuna like focus – the ability to block out all distraction & the determination to achieve his goals.

Why I have immense faith in the Leadership of Shri Narendra Modi ?        

• ·      Leadership is all about taking bold & prudent decisions keeping in mind  the long term goals of the Nation/organisation. It is certainly not about playing the victim card like Arvind Kejriwal & Rahul Gandhi  in order to garner sympathy votes.  Modi always talks about his work  & not about his Grandmother/Father like the Gandhi scion. He wants to be judged  purely on the basis of his work & not on the basis of his lineage.
• ·         Narendra Modi has been the victim of the longest running defamation campaign in India’s political history . Despite hate-mongering by the media, Modi  continues to attract people because of his development agenda. Narendra  Modi  despite being hounded by hostile Media for so many years never threatened to send media people to  Jail like the very ‘special’ Aam Aadmi Arvind Kejriwal . And no need to mention the emergency era under congress where all civic liberties were curbed.
• ·         Modi has single-handedly changed the political discourse of India from Caste/Secularism to Development  (the manifestoes of all political parties for Gujarat elections are a testimony to this fact ) .This is a major paradigm shift from the Nehruvian/socialist/leftist stance thrust upon the nation since Independence. Instead of voting the caste people will cast their vote based on performance & track record .
• ·         Like a true leader, Narendra Modi has the ability to take decisions with certain ruthlessness necessary for beating down vested interests without submitting to any act of dissent. He has the ability to revive the fortunes of BJP by cutting down the dead wood without giving much importance to the tantrums of sulking old guard.
• ·         He doesn’t believe in tokenism like praising Jinnah , wearing  skull cap or splashing  his pictures of  Iftar party unlike many ‘Sickulars’  to prove his secular credentials or doling out extra ordinary appeasement to garner votes . He does not believe in politics of communal appeasement  & has focussed only on mass prosperity  and equality . This is a paradigm shift from the pre-dominant  politics of  keeping India fractured on communal lines.
• ·         Narendra  Modi has a single point agenda – Development for all & appeasement of  none. Free laptops & other freebies do not fall under his scheme of things . He believes in liberal policies, economic freedom, creating  job opportunities as a means to achieve mass prosperity .
• ·   Narendra  Modi has a tough stand on National  security. He can single-handedly  tackle the sinister forces who with their nefarious designs  have tried to challenge the sovereignty of India time and again. We have paid the price of having a weak govt. at the centre. When asked to crawl he does not even bend  and such leader can surely protect the interests of our Nation.

The above factors convey only one thing – Narendra  Modi is the only alternative .

After College - MBA or Job ??

Finally the most awaited & also the most dreaded ( for  few ) season of one’s Engineering career – the placement season has started. Everyone is trying to be as presentable as he/she can be. Even Saurav, who never bothered about his dressing sense, was in his best attire. The thought of  better job prospects & better future was lingering in everyone's mind & so everyone  was trying  his level best to  impress ( or fool ) the interview panel.

The same people who  were once diehard fans of  wrestlemania  & other sports  were now discussing the gyaan given by Kotler  baba & Steve Uncle . The campus was buzzing with words like TCS,TechM,Wipro, Infy etc. as IT companies dominate this season in the Engineering colleges . And the placement season was responsible for this wind of change. Although it was temporary but it was a welcome change. So finally when  the placement season was over, most students  were placed & while others decided to go for higher studies -for them either it was the critical CAT or the Mighty MS or the glaring GATE .

I would like to share two incidents which would show the euphoria surrounding this placement season and at the same time  madness of the Engineering students.

1)      (1)  One of my close friend , Saurabh  ( he is different from the one I mentioned earlier ) was so excited after he got placed in TechM, the first company to visit our campus , that he started shouting at the peak of his voice…moving from one building to another..ready to announce …I have arrived !. Few thought he has lost his mental balance & even volunteered to take him to the Doctor . However, I decided to keep a low profile:) 

)         (2)Yes , my friend Kapil is different. Trust him to do the unexpected & he won't let you down.I would not like to mention how he was dressed for the interview…it  can be anyone's guess. Finally, he was called for the interview & there he showed who he was. When asked about his dressing sense, pat came the reply  “ I don’t think it has any relevance to my knowledge or for that matter my job profile “. The panel members were shocked …But the show has  just started . Many questions were asked but  his replies were never staraightforward. Finally he was asked why he should be hired. Very candidly he replied that he was much better than the many candidates who were selected . Finally , they said that ,” You fit the bill & you are hired .” And here was the masterstroke from Kapil ,” I don’t think this company is fit for me and I don’t want to waste the time of other candidates who are waiting outside. Thankyou "…and he left . This was a rude shock for the interview panel .Whether it was  madness or something else but it surely made him a star overnight.

Engineering is like an expedition, a four year long journey. Insipid in the beginning, interesting in the middle & responsible & beautiful at the end. You can always be singer, guitarist,pianist ,cricketer,etc.  first & then an engineering student. It gives you ample freedom to excel in your area of interest. Such is the beauty of life in an engineering college.

The session after placement waiting for the  call from the company to join is very placid and serene. The busy schedule of college bus timings, class works, exams and results is no more. Spending most of the time with friends, new releases, late night roaming, computer games, short trips & placement parties make the daily routine. So everyone was trying to make the most of the opportunity available to them..Living life King size .

And finally after the final exams , it was time to bid adieu & get ready for the hunt. A hunt for a purpose, A hunt for knowledge, A hunt for the stomach,A hunt for a career and a hunt for a life.

With bucket full of dreams, We finally landed in our respective cities to start what we call professional life. One important thing I would like to mention here is that even after our placement we used to discuss the merits & demerits of doing MBA after our engineering.

Finally we ended up joining the company in which we were placed & MBA took a backseat.

Was it a big mistake ???

                                                                                                    …………………….to be continued.

iMourn iRespect Steve Jobs !!

 For Indians all hell broke loose after the sad demise of the visionary co-founder of Apple Computer, Steve Jobs, who died after a long fight against pancreatic cancer. Steve Jobs' impact on modern society can not be understated. But the immediate beatification of Steve Jobs fulfills all the criteria for mass delusion and is evidence of some kind of quasi-religious quackery . Every Tom & Harry ( one name omitted for obvious reasons ) was dying to join the league of Mahindras & Tatas to pay rich tributes  to  the man behind iPad,iPhone & iPod.

There were posts on facebook  & tweets on Twitter and everyone was iMad to outsmart others in paying tributes . Everyone iMourned  the demise of Steve Jobs & everyone was iSad about it.

Few examples are :

Atul

3 Apples changed the world: the one that Eve ate, the one that fell on Newton's head & the one that Steve built. RIP Steve Jobs .

Sudhanshu 

"The people who are crazy enough to think they can change the world, are the ones who do" - Steve Jobs 

Goodbye Steve Jobs. Visionary. Leader. Genius. Inspiration. Thank you for moving us to resist settling for average. R.I.P 

Hunny 

"Being the richest man in the cemetery doesn't matter to me. Going to bed at night saying we've done something wonderful, that's what matters to me."-Steve Jobs R.I.P !!

With due respect to the genius Steve jobs was, I would  like to ask all the people who went berserk how many of them use Apple products. People went overboard & compared Steve Jobs with Gandhiji . Now it was  time  for me to go iMad. I mean I don’t see any reason behind this. I wonder at the Mania of Crowds.

My post does not intend to demean Mr. Jobs or his achievements. He was a modern magician who reached into tomorrow and came up with things that changed millions of lives and nobody can deny this fact. It merely asks that we keep them in some kind of perspective and by doing so might better honor his life, work and legacy. But to listen to some of the weeping and wailing on all social networking sites & micro-blogging sites one is forced (incuing me ) to think that prior to the inventions of the iPod, iPhone and iPad no-one had ever previously listened to music, endured a telephone conversation or read anything on a screen. Let me make it clear  Apple improved each of those experiences; it did not create them.

Although iPad, iPod are great hits but it’s also true Apple remains an elite and niche product . Macpro is anytime costlier than HP or IBM product.

There’s no doubt that Steve Jobs was a genius . But that does not mean that people should throng Apple stores to hang around with other mourners and make a fool of oneself. Those that do so reveal themselves as members of a cult or iReligion  that's just as stupid as any other and equally deserving of scorn and pity.

 

Open letter to Delhi Boy - My Response

Open Letter to Delhi Boy   - My Response

Its a nice write up but the content is too much racist in nature. I could feel the lady spitting venom while reading it.

Well to start with , I am an Indian & having stayed in almost all the major metropolitan cities ( barring Kolkata ) , I can say that what you experienced in delhi happens everywhere. Just like corruption , it's a global phenomena. Idiocy does not exactly require a geographical qualification. Just because you had an unpleasant encounter with few spoilt brats , it doesn't mean that the whole lot is bad & so the generalization based on that shows your level of maturity (rather immaturity ). 

What you experienced in Delhi ,the same can be experienced by someone else in Chennai or any other city. But that doesn't mean that that person should also write an open letter demeaning others. That would be the most stupid thing to do. On a lighter note , I guess this outburst is because you were devoid of any attention from Delhi boy :P 

But on a serious note, if you have written this to garner public attention then my heartiest congratulations to you as you have accomplished this mission !! 

As someone said, Just forget & forgive and move onto new things that life has to offer !!

Shopping Spree – local action, global reaction !!

Last week my friend Mr. Atul  was on a shopping spree ahead of his visit to his hometown. I don’t know whether  the word ‘spree’ is the right fit or not , but the way he was buying things ,even when they were not needed ,it was not less than a blitzkrieg. 

On our way back , I asked the reason for this indulgence & he very candidly replied :

 “Dude, I have got the Visa power !  “, referring to his credit card as if he is blessed with Divine power.  

So my next question was, “Who is going to pay for the ‘powerful’ bill for using this so called visa power ?“. .Pat came the reply with a rider “ Me,but only if I’ll have the money to pay .” 

“ Its people like you who are responsible for the big mess in which world economy has been pushed today .” I told him. 
“ Yaar, now  what this has to do with the world economic problem. How suddenly you have brought  world economy into this ?  I am totally confused . ” he said. 

Seeing his spending habits , I couldn’t resist the temptation to relate it the current world economic problem which has forced many European economies are on the verge of bankruptcy. 

Although my friend does not fall under the NINJA ( for beginners , NINJA is a description of type of loan or credit given to people in US with No Income No job No assets  which created turmoil that threatened  some of the biggest financial institutions of the world ) category but such type of  spending  habits have  surely  created deep fissures in the global economy.
For an individual it might be an easy & best  thing to do what we call as ‘credit default’  but in an integrated economy & in an integrated world ,what is best for an individual or institution is not always best for the system.  And the fault lines which have resulted in the present economic crisis are very systemic & each individual or institution has acted as a tectonic force which led to these fissures in the world economy.  

A wider cast of character shares responsibility for the crisis : it includes regulators, policy makers , people like Atul  & me. It’s a collective effort which is all set to take the World’s economy to the brink of disaster.  The danger of Greek default is looming large & if this happens , a chain reaction will start which is sure to engulf the other European economies like Italy,France ,Germany etc.  The picture of US economy is also not that rosy as its total debt is 96% of its GDP  & the sheer size of this debt can send shivers down the spine of even the most optimistic economist hoping for the global economic recovery.

Tough time calls for tough measures & hopefully US will rise to the occasion & take measures to check the turbulence and widespread fiscal strain threatening the global economy.

The magic 'number'

Last week, I was reading a book called ' Gods and Godmen in India' by Khushwant Singh and it was a pleasure reading that book as very few authors have the guts what it takes to charge like a raging bull to attack the epidemic of Gods( i believe demi-gods would have been more apt) and godmen that has swept the nation in recent years. In that book , he has also mentioned about four things which are mostly in the minds of Indians and one of them is market ( For other three, Read the book).So what is  stock market all about ? Is it just a number or more than that ?

For some, its a 'support' level while for others its a  'resistance' level. Some call it a 'bullish' phase while other term it as a 'bearish' phase. But why such a hype about this number ? Perhaps no other number draws so much attention in middle and upper class as the numbers on the Sensex.It takes only few swings in the stock market for the people to change their opinion about equity market.Like, when sensex touched the 8000 level, everything about the stock markets looked uncomfortable and there were talks of further dips upto 6000.

And when the recent rally took place and the Sensex touched 16K, the very people who were then skeptical about the stock market are now not tired of predicting new 'Highs' for the Sensex with every passing day. We can see the changing mood of so-calledStock pundits & leading global investment houses, thanks to change in those 'Magic numbers'. There are many experts( rather Craps , saying all the non-sense things to further their own interests) appearing on the business channels trying to grab the attention of the people by predicting the new levels of the Sensex without even thinking about their blunders in the past.

But for us,the investors, while it is natural to go with the tide, some rules of investing don't change siply because the mood in the environment has undergone a change. Some understand it easily while others are forced to understand the hard way ( after loosing huge amount). But one thing is true that equity will always provide us a good earning opportunity ( a faster one) but can never give us the comfort of safety like the one in traditional investment opportunities. It holds well irrespective of the sensex level, bullish or bearish phase.

Here, I would like to quote, Benjamin Graham,the legendry investment Guru -

" In the short term, market is a 'voting'  machine whereon countless individuals register their choices that are product partly of reason and partly of emotion. However, in the long-term, the market is a 'weighing' machine on which the value of each issue is recorded by an exact and impersonal mechanism."

HAPPY INVESTING

Sugar Outlook

With reference to our earlier post “Market Outlook” , we again reaffirm our faith in the sugar stocks.But before giving the reasons for the same, its better to understand the factors which drive the prices of this commodity.

 

 

 

 

 

 

 

 

 

There are 4 factors that can determine the price direction for sugar in future.

1)  Dollar-A stronger Dollar usually means weaker commodity prices. We saw

this when the March Dollar Index rallied from 76.30 (9/22/08) to 89.74 (11/19/08). During this same period, March ’09 sugar prices dropped from 14.72 (9/26/08) to 10.44 (10/24/08). If the Dollar continues to rise, the upside potential for sugar could be limited.
2) Equity Markets-The price movement in the equity markets can have an affect on the sugar market. A weak equity market will continue to feed fears of slowing demand. This will pressure prices and/or limit the upside.

3) Crude Oil- There was a correlation between crude oil and sugar prices between 2004 and 2006. This was due to the increase use of turning sugar into ethanol. In 2004, crude broke above the $40.00 level. This “breakout” resulted in a 2-year bull run, in which prices topped out at 78.40 in 2006. During this same 2 year span, sugar prices rallied from 5.27 (2/2004) to 19.73 (2/2006).

The correlation ended after these markets topped out in 2006. As we all know, crude resumed its bull run in 2007 and pushed to a high of 147.27 in July 2008. Sugar, on the other hand, did not get near its 2006 high.
With crude prices back around the $40-$50 level, we may see the relationship return. Some Energy analysts have talked about crude prices down to $25.00-$30.00. If this happens, we could see sugar prices move significantly lower. This lower move in sugar could lead to a good buying opportunity in 2009.
4) Demand-As with any physical commodity, demand is a key factor for price
direction. As I mentioned earlier in this report, expectations were released in the last quarter of 2008 that demand would exceed production for the 2008-2009 marketing year.

**Extracted from Commodity report

 And the following factors have made us believe that the sugar story is far from over:

Parts of Brazil have had four times more than normal rain due to the El Nino effect, adversely affecting sugarcane crop. Due to this, Brazil’s sugar production is expected to fall short of the estimated 32 – 33 mt to 30.3 million tons in 2009-10.

Besides India, Pakistan and Bangladesh also plan to import the sweetener to cater to their domestic demand. Further Indonesia, Southeast Asia’s largest sugar buyer, may also step up imports to stem the domestic prices.

World outlook

 Worldwide demand for sugar will exceed output by 9.35 million tons in the year ending Sept. 30, more

than the 7.8 million tons projected in May, according to London-based International Sugar Organization.

Please Click Here to check the sugar prices.



We reiterate our buy call on sugar stocks with good fundamentals.Some of the good stocks which will give better returns in the near future are :

1. Bajaj Hindusthan,  --     Click for  Stock  Price Details
2. Shree Renuka Sugars --Click for Stock Price Details
3.  Simbhaoli Sugars --     Click for Stock Price Details
4.  Gayatri Sugars--          Click for Stock Price Details
5. Dwarikesh Sugars --    Click for Stock Price Details
6. Ponni Sugars Erode. --Click for Stock Price Details
   
   
   
    

"HAPPY INVESTING"

NHPC IPO - The new 'blockbuster'

The recent market rally has given the much needed impetus to the IPO season and the latest one to jump this bandwagon is NHPC. The preliminary data shows that it has been oversubscribed by 7 times. Both from the short-term as well as long-term point, it seems to be a good pick . In short-term , investors can pocket a handsome return on account of listing gains and in long-term this company will offer excellent returns by selling clean energy.

Also investing in NHPC IPO will be an intelligent move as it is from the power sector which is the flavour of the season and has excellent growth prospects considering the huge untapped hydel potential we have in India. Also coming from the stable of govt., this IPO has an edge over others as govt. will ensure that the IPO is listed at a 'good' premium to earn the investor's faith. The success of NHPC would fuel the scope of further disinvestment in other govt. entities.This will be a good bet in the long run and it is essential to remain invested in this company to reap huge benefits.

The valuation seems to be perfect and this may tilt the balance in its favour. In grey market , it is running at a premium of Rs. 10 and above which means that the stock may be listed somewhere around Rs.46. Seeing the current subscription level, it seems to be difficult to get the required allotments. But there is no harm in going for it. The only cause of concern is the market sentiments at the time of listing as any negative sentiment can drive the prices southwards. But the govt. has enough financial muscle to ensure its 'smooth' listing and the prices running southwards seem to be a remote possibility, although it can't be ruled out.

"Happy Investing."

Market Outlook- Tough times ahead

With the monsoon playing hide-and-seek with us, the problems are only going to aggravate and this might prove to be a red signal to the recent rally which the market witnessed. The monsoon problem appears to be more severe than we had anticipated.The govt. may now have to come up with relief packages to support the struggling farmers who are highly dependent on monsoons for agriculture.The problem of food security might crop up due to poor monsoons and the govt. might have to build up huge reserves.

But poor monsoon is not only responsible for huge selling pressure which the sensex witnessed in the last two days.The market had run up sharply in the last few days so a correction was definitely on the cards.

But still 'intelligent investors' can make the most of this volatile market by taking some calculated risks.One commodity which has shown a continuous uptrend for the past couple of months is sugar . The prices are continuously rising and the poor monsoon may drive the prices of this commodity northwards. The prices have nearly doubled since the last few months. This may create a big hole in our pocket by increasing the household budget and but for sugar companies its a much-awaited 'business' time. So taking positions in sugar stocks like Balrampur Chini and Triveni Engineering will help us to capitalize the price rise in this commodity. And weak monsoon forecasts will only boost the profits of these companies. The target for Balrampur Chini is Rs.150 and for Triveni Engineering it is Rs.130. So it makes a good business sense to ride the upward trend the of these stocks and thereby pocketing handsome profit on the way.

Due to high volatility of these stocks, a cautious approach is needed while entering in these stocks.

"Happy Investing."

Adani Power IPO- Is it really a blockbuster ?

As I was going through the newspaper today, my eyes stopped at one of the headlines which announced :" Adani Power IPO is a blockbuster". I wonder whether it really is. But the media is working full time to portray as the biggest hit in present scenario as it has been over-subscribed 21 times. Clearly this was an intelligent move by the company to encash the positive market sentiment which is giving the much needed impetus to the sensex in its upward rally. But how long this rally will last is also a matter of debate ?

We should not forget the Reliance Power IPO which is the biggest hit of all times. There was nothing wrong with the Reliance Power IPO except the timing. But you never know about the market behaviour and its practically impossible to time the market. No one saw the economic recession coming and this company became its biggest victim. The mania that surrounded the latter last year does not seem to be there this time around. But given the current market conditions, even much lower subscription numbers for Adani's IPO are being touted as 'blockbuster'.

But is it really worth investing in IPO such turbulent market conditions. I personally think that let the company test the market for 2-3 months and then go for it if its performnce is in line with the expectations.

Many of my colleagues(Vijay Panpalia & others) have invested in this IPO in the hope of getting handsome returns. I don't doubt their business acumen but i do feel that this was not the right move. But they are also proven masters of this game and may chalk out some strategy to make the most of it. The prominent strategy being selling this once it touches 130 level which it will certainly reach. So everyone is trying to make the most of the recent market sentiment in his or her own way.

I have my own reasons for not investing in this IPO. The first and the foremost reason being its overvaluation. In my opinion the correct valuation would have been around Rs. 70-75. After all, investors have been offered shares in these companies, when these have no business revenues or profits to boast of. And nothing's going to come for the next 2-3 years as well since the power projects have along gestation period. Retail investors are again been made to see 'Power' as a 'hot' sector. We hope they do not burn their hand again given that these IPOs have been sold not on real company profits, but on imaginary profits that are 'likely' to come a few years down the line.

I am not against this IPO or any other but i do feel that investors should do their homework before investing their hard earned money.

" Happy investing."

Tariff hike : Power 'shock' or an 'eyeopener'

The recent tariff hike by Mumbai utilities especially Reliance Infrastructure Ltd. and BEST led to violent protests by people across Mumbai distribution area who on the behest of some political parties went on rampage destroying public property and bringing total chaos. But we need to ask ourselves that are these protests justified and that too in the manner in which these protests are 'organised'( to serve the political ambitions). From a consumer point of view, the protest is justified as this steep tariff hike is going to create a big hole in his pocket. But this tariff hike was inevitable due to variety of factors and so we should understand the rationale behind this.

First and the foremost thing is that we should understand the power scenario in India . In India, due to generation-demand mismatch , the power is sold on higher rates and as a result the distribution utilities are bound to pass this heat on the consumers.Now,in case of Mumbai, which enjoys zero load-shedding status on account of being the commercial capital, the gap between demand and supply is huge and so the mumbai utilities have to pay a higher price in order to meet the shortfall of power. And obviously the higher cost of power is to be borne by consumers. So this was one of the important reason for the price hike.

But who is responsible for this supply-demand gap which is responsible for purchase of costly power? Its the apathy shown by the government towards the power sector and lack of foresightedness which is responsible for the grim situation in which the state has been pushed by the so called 'visionary' leaders. In the last few years , practically no or negligible generation has been added in the state while the demand has continuously increased and this also includes the regime of the political parties which are spearheading the protests to further their own ambitions. And the most ironical part is that common man is taken for a ride by these parties who are just organizing protests to further their political goals .These agitations have more political tones with assembly elections approaching which is not going to solve this critical problem unless and until we try to find the out the root cause of the problem.

And the main cause is the huge gap between demand and supply. So the government will have to take extra-ordinary efforts to invite investments for adding new generating capacity in the state. Also the govt. should expedite the process of acquring land for the power projects which are on hold due to this land acquisition problem.

Also the following steps, if taken, will be instrumental in reducing the demand-supply gap which in turn will bring the much needed respite to the consumers in the form of economical power:

1) Mumbai should be allocated share in the central generating stations(CGS).
2) Mumbai should be allowed to draw from UI pool when the grid frequency is good and the power is available at cheaper rate.
3) The existing generation capacities should be expanded ( wherever possible) to meet the ever increasing demand as augmenting the capacity of existing power plant is less time consuming than installing in a new power plant.
4) The generation companies in Mumbai having surplus power should not be allowed to sell the power outside Mumbai when the city is reeling under severe power crisis. The sale of power should be allowed only when Mumbai is self-sufficient to meet its demand.
5) The CERC should put a tab on the prices of power purchased from the open market as this will curb the volatility of the prices.
6) All subsidies on power should be done away with as people will judiciously use power only when the pay the true power cost and not the subsidised one.


Also many people have this wrong notion that the utilities are responsible for effecting this steep hike which is not true. The electricity business is a highly regulated business and the utilities can not hike the tariff as per their whims and fancies. These prices are hiked by regulatory commissions which in our case is MERC.

So as an informed citizen , it should be our moral obligation to ask our leaders and representatives that what they have been doing all these years. We should refrain from falling prey to their ideas of adopting violent means to protest the tariff hike as that will only aggravate the problem instead of solving it.
Remember these protests are just poll gimmicks to futher their polictical ambitions and a face saving formula to hide their failures in adding new generation capacities in the state.

MUMBAI- Growing apathy towards elections

The Elections 2009 are different from other parliamentary elections as these elections are being held in the backdrop of so many important issues like recession, terrorism etc which will decide the future of India in its journey to become a super power. So it was but obvious that public especially those in Mumbai will take part in this democratic festival with full fervor.

It was expected that the tragic 26/11 terrorist attacks would galvanize the city and there will be a spirited participation of people from all walks of life in the electoral process.
But the voter turn-out on 30th April,the day Mumbai went to polls , belied all the expectations. On April 30th, as Mumbai voted, and camera crews whizzed around expecting a huge rush thronging polling booths, a certain reality dawned. It was evident that when it comes to choose between two V’s – Vote or Vaccation, many chose latter.
The people of this city, which is famous for its undying spirit, were angry at the unprofessional handling of the 26/11 terror attacks. This election they were expected to come out in huge numbers and vote for a stable government. But the JOSH seems to have died down.
It is ironical that the city which has major contribution in total tax collection in India failed( due to lesser contribution) when it came to exercising voting rights to elect people who will be deciding the use of taxpayer’s money.
At less than 43% voting percentage , it showed not just apathy, but sheer contemptuous disinterestedness.All media campaigns and Jaago-Re initiatives urging people to vote for change, vote for stability, vote for future seems to have fallen on deaf ears. One Lead India campaign cannot undo years of page 3 hard-sell.
But we need to find out the reason for the voter’s growing apathy towards the electoral process not only in Mumbai but all over India.
In todays scenerio when the election fever is scaling new heights daily , many voters are confused whether to exercise their fundamental right of voting or not? And if yes, then whom to vote for? Vote for the candidate or the party?Many a times the candidates seems promising but the party has a dubious history, or if the party seems encourging then the candidate has a shady history The big question is whom to select?
And let me remind you , the common man realizes that the elections are near only when the roads gets repaired, the potholes get filled in temporarily and the local politicians act as sychophants. I don’t understand why there is no retirement age for the political professionals. Besides there is no pre set eligibility criteria for the post of the first citizen and the prime minister of a country where more than a billion people thrive but there exists a qualification criteria even for a government clerk.We need to think seriously on this issue.

But what was the reason behind mystifying dip in voting numbers in Mumbai. Mumbai being the economic capital does not have a political character. It is a city with a commercial outlook , pregnant with career dreams , bare survival and the lure of endless monies and good fortunes.
It understands the language of Sensex,saving, success , growth & survival. Here issues like Godhra & Nandigram take a backseat when it comes to issues like credit policy, PLR, exchange rates. I am not saying that these issues are irrelevant but political issues are also important as they are also going to decide the future of India.

But what I observed that the so-called upper class has apathy towards elections and the common man still braved the scorching heat to discharge his duty as a responsible citizen and this should be solace for all of us as ,we, the common people are the pulse of this nation.
In-fact many of my colleagues took extra efforts and braved the Sun to take part in the electoral process.

So situation has certainly deteriorated in the past few years but the only silver lining in this cloud is that common public still believes that the only way to bring out the desired change is through democratic process.
All said and done, the political landscape in India would be one to watch out in the years to come!!

Sensex may give up recent gains, post elections

The sensex might see a downfall in case there is no clear mandate after elections. The market is not going to sustain recent rallies if there is a hung parliament,i.e. no party gets a clear majority to form government at the centre . This will be a shot in the arm of Left-parties and they will wield immense power in govt. formation which ,in turn, will not be a healthy sign for the battered Indian economy.

With the market not showing any downturn for some days, it can be assumed that the tough times are over. But you never know when market will take a turn contrary to the perception of masses. And the election results can play a spoilsport if third front ( i don't know whether it exists in reality or in election speeches) emerges as kingmaker. It is in the interest of Indian economy that any alliance( as chances of any single party getting the mandate are remote) gets a clear cut majority to form the govt. at the centre because only a strong govt. can take strong decisions to revive the economy.

Many analysts ,worth their names, have said that the recent upswing was a result of bear market rally. But whether this is a bull market rally or a bullish phase in a bear market is still debatable. One can go on arguing till the cows come home. But in my opinion, it is not for nothing that the market has reached these levels. There is something which has helped the market to bounce back to the current levels. Whether this rally continues after the elections is hard to predict at this juncture as a lot depends on the results.

As an investor we should not be concerned about whether its bullish rally or bearish one. Rather we should be more interested in following the trend. One thing i have learnt ( although after loosing some money) that never have pre-concieved notions about the market movement. Either get along with the trend or just stay away....or else you are inviting troubles.

Let us logically weigh the possible three outcomes of the elections:

(i) A Congress-led government at the centre will bring a sigh of relief to the markets as they are expected to take some hard decisions in the large interests of economy and if we are able to sustain the current bounce back, we will rally some more in salutation.

(ii) The BJP-led NDA govt. at the centre will be a positive sign for the entire broking community and the market will rally more.

(iii) And third-front coming to power or even emerging as kingmaker will be a serious concern as they will pose a threat to the economic reforms.

A Nielsen study indicates over 200 seats for the Congress-led UPA which is far removed from what other pundits are saying. If that is the case, then chances are that there will be a Cong led govt at the centre and this will certainly boost the economy. Having said that, there would still be a fair amount of nervousness leading up to counting day and one can expect unwinding of positions ahead of that which can lead to downturn in the sensex.

The degree of volatility would depend on the emergence of third front as kingmaker. However the possibility of market testing new lows seems to be a distant one. In addition what is seen as a bear market rally, positive news coming from US seems to play a dominant role in current market rally and hopefully the trend will continue in future.

" Happy investing....."

A Salute to The Spirit of Mumbai

Last year in August, I came to Mumbai with my baggage and dreams in my eyes of doing something big as so many people have done it and so many people will do it.
The first thing I noticed after reaching here was the fast life.
It seemed People do not have time for anything. Work has kept them away from everything. Initially one finds it difficult to cope with the Mumbai’s hectic life but in due course of time you become a part of the city and do not mind the hectic pace. How fast life in Mumbai is? At times you feel that Mumbai is a city where people are heartless and business-minded. But this is not always true.
Before coming to Mumbai, I had heard people talking about the undying spirit of Mumbai but never got to know what its all about.
When I recall what happened in Mumbai on 26th November, I am taken aback by the strength and resilience that Mumbaikars exhibited subsequently. That day I was puttering around my flat after a gruelling day at work, performing some mundane yet vitally important household chores. Suddenly I got a call from my close friend R. Sriram(who stays in Santacruz) who told me about the terrorist attack. Immediately I switched on my tv and what I saw was something which was mix of everything – the shock, the fear, the pain,the tears. But the way People helped each other out in such testing times was incredible and speaks volume of the spirit of Mumbai.

'The spirit of Mumbai' isn't just a pretty phrase — it's a reality that comes to the fore every time the city is struck by disaster .
But talking about the spirit of Mumbai without mentioning the life in local trains will be a great injustice to the whole story. Commuting through local trains is not an experience-its an ordeal, and if you want to see real spirit of Mumbai then the local trains are best option one can think of.
Everyday it’s a new experience here. What is Real Mumbai all about? Is it what we get to see everyday? People who are too hard-pressed for time to help themselves let alone help others; or people who go out of the way to help even strangers when disaster strikes.
I salute the undying spirit of Mumbai.

LALIT MODI- The new face of corporate India

The other day I was watching the IPL -2 post-match ceremony and the way Mr. Lalit Modi-the man who changed the landscape of Indian cricket by launching Indian Premier League, addressed all the cricket lovers, both in the stadium and watching from tv-sets , i am sure it left a mark in their hearts. Lalit Modi- the IPL Commissioner, has taken cricket into a new era, turning a sport that can be baffling to watch for five days into an action-packed game lasting for few hours. He has conceived and executed the idea of IPL with a spectacular success.

He is the man who was instrumental in the happy marriage of cricket and entertainment. This astute businessman was not only able to boost the revenues of BCCI through this new format of cricket,which is raking lot of moolahs, but also added glamour to it by inviting bollywood stars and people from corporate world to be stakeholders of IPL.

As the election dates clashed with IPL-2 and the Government showed its reluctance in providing adequate security arrangements , the fate of IPL-2 seemed to be hanging in air. Without Govt. support, it was obvious that its not going to be a smooth sailing for IPL-2 and cricet fans will be deprived of all the fun and entertainment provided by IPL

But Mr. Modi had other things in his mind. He decided to shift the season-2 of IPL to South Africa in order to keep his promise to all the cricket fans of organizing this tournament in April.And its worth mentioning that all the arrangements for organizing this mega-event were made in less than four weeks and it was possible because of the sheer commitment of Lalit Modi and his team.
The way he managed to organize IPL-2 in South Africa in such a short span, putting all the apprehensions aside, speaks volume of his managerial skills .

And with Mr. Lalit Modi as a lead anchor for IPL,the only thing which comes into my mind is:

"The difficult was completed immediately, it was the impossible which took little time."

Finally a full stop to The Satyam Saga

With TechMahindra finally getting the controlling stake after a 3-month drama, all the market speculations about the future of this so called India's Enron were put to rest on Monday bringing much needed respite for the employees and customers.Ever since Satyam's founder Raju confessed of a financial fraud, there was a big question mark on the fate of its employees and clients. But when TechMahindra clinched the deal by beating its rivals such as engineering conglomerate L&T and a group led by Mr.Wilbur Ross to acquire this battered firm, it came as a breath of fresh air after 3-months of ordeal for all the stakeholders of Satyam. Due to the sincere efforts and timely action of the government appointed board which was formed to oversee the resurrection process of the fraud-hit company, the future of many employees is now in safe hands and this is a major step in boosting the Indian Corporate image.
But this is just the ground work and a lot needs to be done . With its huge liability and long list of lawsuits, Satyam can be a white elephant for TechMahindra if not handled carefully.
Tech Mahindra faces the daunting task of reshaping Satyam, a company at the heart of India’s biggest corporate scandal.
And the good part about this saga is that satyam gives you a company picture not like Lehman Brothers or Enron where you find only buried souls finding their way to salvation.
But it remains to be seen whether TechMahindra , with its huge experience , is able to transform the maligned business firm into a profit-making company or not. Given the potential pitfalls which the new management still have to navigate, this seems to be a daunting task but not the impossible one.
Finally i would like to quote Euriprides who once said:
" There is in the worst of fortune the best chances for a happy change ."
And this seems more apt to the satyam saga.