Sensex sheds 525 points this week

Indian equity market was volatile on Friday before closing on a flat note. After a continuous sharp cut for the last three consecutive sessions, the market consoildated today indicating that almost all negatives have been factored in atleast for the time being. Along with the US and Europe, Indian market too is eyeing the US debt plan.

The 30-share BSE Sensex closed almost flat at 18,197.20, falling just 12.32 points. The index had shed 661 points in previous three sessions on the back of more-than-expected hike of 50 basis points in key rates by RBI to tame inflation coupled with uncertainty over US debt deal.

Mark Mobius, Executive Chairman of Templeton Emerging Markets is less bullish on India among its peers. "The problem is mainly the valuations which are rather high," he pointed out.

Criticising RBI move to hike rates Mobius said, "The unfortunate thing is higher interest rates don't necessarily mean that you have tackled inflation. Inflation is tackled by high productivity and the way you get it by having a more efficient administration," he said.

Speak Asia COO Tarak Bajpai in police net

Speak Asia COO Tarak Bajpai was detained by the Economic Offenses Wing of the Mumbai police for questioning on Friday. The online survey company hit controversy in a multi-crore scam.

The move comes just two days after CID froze the online survey company's bank accounts.

Bajpai, who is the most prominent face of the online survey company's India operations will be flown from Indore to Mumbai.

Speak Asia is being investigated for a multi-level fraud. FIRs and PILs have been filed against it. The company has maintained that it collects money only for its online magazine and that the survey is just a benefit.

Speaking to CNN-IBN, Kirit Somaiya said that three other officials of speak Asia are likely to be arrested soon.

"Pranab Mukherjee had assured me that strong action would be done at the initial stage so that such frauds do not go on. Hope Pranab Mukherjee gives some assurance in Parliament this session," he said.

Who is Tarak Bajpai?

Tarak Bajpai is the face of Speak Asia's India operations. He mainly handled training, communication with members and hosted the retreat for Speak Asia investors in Goa this year.

The Singapore-based company Speak Asia, which is yet to be incorporated as a company in India, would be inspected under section 591 of the Companies Act, which is applicable on companies incorporated outside India and has established a place of business within the country, sources said.

The company charges a membership fee is Rs 11,000 for a year. The members are expected to conduct online surveys for clients of the firm. Members are paid for conducting the surveys. The company said that it pays Rs 500 for every survey to its member.

Great News For Indian Stock Market

 Great News For Indian Stock Market

According to a report, India will be the largest economy in the world by 2050. This report says that Indian economy will likely to lead the world by surpassing China and US. That is really a Great news for Indian stock market and for all Indians.
This is possible because of its continuous robust growth. These days GDP growth has been increased due to investment in infrastructure.
It is mentioned in the report presented by Citi ,"China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050.
Indian economy is expected to be nearly $ 85.97 trillion on purchasing power parity (PPP) basis by 2050 from $ 3.92 trillion in 2010.  
According to the World Bank, , in 2009, Indian economy -- valued at $ 3.78 trillion -- was at the fourth place in terms of PPP. The country was behind the US, China and Japan only.
The report said India's population of working age is expected to grow by 40.7 per cent between 2010 and 2050. The report added ,India has successfully raised its aggregate savings rate to levels that would allow sustained high levels of domestic capital formation. 

This is a wonderful news for all Indians as well as for people related to stock market. India is a growing economy and soon it will be the largest economy in the world. That time India will rule the world. So a great news for all of us. Isn't it?

Bloodbath on D-Street continues

Bloodbath in the market continued for the third consecutive session. It was an expiry session marked by extreme weakness, poor earnings, and selling in reliance, technology & metal stocks that knocked off the market.

The BSE benchmark Sensex fell 223 points, to close at 18,209 while the NSE Nifty lost 59 points, to end at 5,487.

Experts have already rung the warning bell saying that the market may sink further. Ashish Chaturmuhta of IIFL Private Wealth Management feels that there is a lot of selling pressure at the higher end.

Manoj Murlidhar, Head of Derivatives, IIFL PReMIA too believes that Nifty may see a volatility of 18-20 odd points.

Holidaybreak buy to be EPS positive from start

Tour operator Cox & Kings , on Wednesday, agreed to buy British specialist travel company Holidaybreak for 312 million pounds (USD 511.3 million) in an all cash transaction.

The deal is looked upon as a game changer for the India-based company.  

Speaking to CNBC-TV18, Peter Kerkar, group CEO at Cox & Kings said the acquisition will be funded via a combination of debt and equity. "We have created a special purpose vehicle (SPV) to fund this acquisition," he informed adding, "…the total deal size is at Rs 2,350 crore."

It will be a 100% acquisition of the company, and it will be subject to majority approval from the shareholders of the company. Kerkar does not expect any hiccups as far as shareholder approval is concerned. "We are pretty confident that it should go through seamlessly," he said. 

“We will use the cash balance of Rs 1,000 crore to fund this deal," he said adding, “will raise more funds if required."

Kerkar expects the deal to be EPS accretive from the start.