Sunday, September 3, 2017

Narendra Modi’s $87 billion river-linking project set to take off as floods hit India

After years of foot-dragging, the govt plans to begin work on an $87 billion scheme to connect nearly 60 rivers in the country as Narendra Modi bets on the project to end deadly floods, droughts

Mayank Bhardwaj

Large areas of eastern and north-eastern India are reeling under floods in which hundreds have died, while torrential rain also brought Mumbai to a standstill this week. The Tamil Nadu, in contrast, recently rationed drinking water due to drought. Photo: PTI
Large areas of eastern and north-eastern India are reeling under floods in which hundreds have died, while torrential rain also brought Mumbai to a standstill this week. The Tamil Nadu, in contrast, recently rationed drinking water due to drought. Photo: PTI
Daudhan: After years of foot-dragging India will begin work in around a month on an $87 billion scheme to connect some of the country’s biggest rivers, government sources say, as Prime Minister Narendra Modi bets on the ambitious project to end deadly floods and droughts.
The mammoth plan entails linking nearly 60 rivers, including the mighty Ganges, which the government hopes will cut farmers’ dependence on fickle monsoon rains by bringing millions of hectares of cultivatable land under irrigation.
In recent weeks, some parts of India and neighbouring Bangladesh and Nepal have been hit by the worst monsoon floods in years, following two years of poor rainfall.
Modi has personally pushed through clearances for the first phase of the project — which would also generate thousands of megawatts of electricity — the sources say, despite opposition from environmentalists, tiger lovers and a former royal family.
That will involve construction of a dam on the Ken river, also known as the Karnavati, in north-central India and a 22-km (14-mile) canal connecting it to the shallow Betwa.
Both rivers flow through vast swathes of Uttar Pradesh and Madhya Pradesh states, ruled by Modi’s Bharatiya Janata Party (BJP), and the prime minister hopes the Ken-Betwa scheme will set a template for other proposed river interlinking projects, one of the sources said.
“We have got clearances in record time, with the last round of clearances coming in only this year,” Sanjeev Balyan, the junior water resources minister, told Reuters. “The Ken-Betwa interlinking tops the priority list of the government.”
Government officials say diverting water from bounteous rivers such as the Ganges, Godavari and Mahanadi to sparse waterways by building a clutch of dams and a network of canals is the only solution to floods and droughts.
But some experts say India would be better off investing in water conservation and better farm practices. Environmentalists and wildlife enthusiasts have also warned of ecological damage.
BJP states first
The 425-km (265-mile) Ken flows through a tiger reserve nestled in a verdant valley. The government plans to clear out 6.5% of the forest reserve to build the dam, relocating nearly 2,000 families from 10 remote villages.
Around half a dozen clearances, including on environmental and forest protection, have been obtained for the scheme to link the Ken and Betwa, according to two sources and documents seen by Reuters.
Modi’s cabinet is likely to give its final go-ahead for the project within a couple of weeks, sources say, after which he will flag off construction at the site about 805 km (500 miles) from New Delhi, currently marked only by rows of red concrete slabs placed on the ground.
The government is also finishing up paperwork on projects in western India linking the Par-Tapi with the Narmada and the Daman Ganga with the Pinjal. The projects involve Modi’s home state of Gujarat and neighbouring Maharashtra, which includes Mumbai, both also ruled by the BJP.
The river-linking projects was first proposed in 2002 by the last BJP-led government. Work stalled because state governments sparred over water sharing contracts and clearances got stuck in India’s notoriously ponderous bureaucracy.
This time, officials hope starting with projects that are all in BJP-ruled states will smooth negotiations.
Modi’s government is touting the linking of rivers as a panacea to the floods and droughts that plague India every year, killing hundreds of poor people and withering crops.
Large areas of eastern and north-eastern India are reeling under floods in which hundreds have died, while torrential rain also brought the commercial capital Mumbai to a standstill this week. The southern state of Tamil Nadu, in contrast, recently rationed drinking water due to drought.
Not everyone is convinced the projects should be the priority, however.
“Theoretically we can’t find fault with the plan,” said Ashok Gulati, a farm economist who has advised governments. “But spending billions of dollars in a country which wastes more water than it produces, it makes more sense to first focus on water conservation.”
India, which has 18% of the world’s population but only 4% of the usable water resources, perversely gives incentives to produce and export thirsty crops such as rice and sugar cane.
Tigers, vultures and canyons
The proposed 77-metre high (250-ft), 2-km long dam on the Ken River will submerge 9,000 hectares of mostly forest land. A big portion will come from the Panna Tiger Reserve, near the UNESCO world heritage site of Khajuraho Temple in Madhya Pradesh.
The forest reserve, a major tourist attraction, is home to 30-35 tigers and nearly 500 vultures.
“Building a dam in a reserve forest is an invitation to a grave environmental disaster,” said Shyamendra Singh, the scion of the Maharajas who ruled a princely state near Panna during the British colonial era. “It will lead to floods in the forest and drought in the downstream.”
Authorities say they have planned for the safety of tigers and vultures.
People in Daudhan village, not very far from the Gangau dam built by the British in 1915, are ambivalent. With no access to electricity and other basic services, they want more information on what they will get in return for being displaced.
“We never got to see electricity in our village,” said village elder Munna Yadav, gesticulating towards the Ken flowing a few metres from his thatched cottage. “If our children get to move out of this area and if the dam benefits everyone, we’ll not oppose it.” Reuters
INDIAN STOCK MARKETS SEPTEMBER SERIES DAILY STUDY REPORT

US MARKETS: FRIDAY DOW UP 39 POINTS @ 21987 AND NASDAQ UP BY 6.60 POINTS @ 6435
EUROPE: DAX CLOSED IN POSITIVE WITH 87 POINTS @ 12143.
POLITICAL NEWS: AS PER REPORTS 9 NEW MINISTERS TO BE INDUCTED IN THE CABINIT. THE CABINET RESHUFFLE CAN BRING SOME CHEER TO MARKETS AND MAY STAY ABOVE 9920 FOR SOME TIME.
COMPANY SPECIFIC NEWS:
INFY PLANS TO APPOINT PRAVEEN RAO AS MD.
RELIANCE TO GIVE JIO-HANDSET BY NAV RATRI.
THE MACRO ECONOMIC NEWS:
NOTE BAN AND GST DISRUPTION ADDED FUEL TO THE SLOWING ECONOMY. THE AUTO SALES HAS SHOWN SOME SIGNS OF RELIEF AS THE ECONOMY IS BACK ON TRACK. THE PSU BANK CONSOLIDATION AND BAD DEBT RECOVERY PLANS MAY HOLD THE CREDIT FLOW TO CORPORATES.

NIFTY: BROAD RANGE SUPPORT AS PER THE RECENT SERIES OPENING MADE YESTERDAY WITH OPTIONS DATA @ : 9700 & 9500 WHILE RESISTANCE BETS ARE OPENED @ 10000 AND 11000

BANK NIFTY: SIMILARLY THE CALL WRITING HAPPENED AROUND 25000,25500 AND PUT WERE WRITTEN @ 23000 AND 23500

IMPORTANT DISCLAIMER:
TRADING IS HIGHLY RISKY AND TRADER ARE THE MOST TO LOOSE AND A CHALLENGING  JOB DUE TO POOR TIMING AND LIMITED CAPITAL.
SO ALWAYS CONSULT YOUR EXPERT ADVISOR AND MAKE YOUR STUDY.

POSSIBLE ACTION AS PER MY STUDY: CONSIDER FOR EDUCATION

MOST PEOPLE BET INDIA DESPITE HIGH P/E ..

India most expensive market on forward earnings multiple

Ashley Coutinho/Mumbai 02 Sep 17 | 02:02 AM

India is now the most expensive market in the world, as measured by its price-to-earnings multiple for the next one year.

Nifty 50 companies traded at a price-to-earnings (P/E) multiple of over 20 times based on calendar year 2017 dollar estimates, making India the most expensive market in the world, data collated from Bloomberg and a brokerage report showed. Benchmark Nifty and Sensex were the top performing indices year to date, behind only Mexico, with the Nifty 50 clocking a gain of 29.3 per cent.


In terms of earnings growth in constant currency terms, however, India was placed 16th when earnings for the Nifty 50 companies were taken into consideration, in comparison with markets such as Taiwan, Singapore, France, the Netherlands, Germany, South Korea and Mexico. Even if we consider the actual earnings growth in the last three years in constant currency, India is number 12 behind markets such as the US, Indonesia and Thailand.



Analysts said earnings growth would revive in the second half of FY18 and pick up steam in the first two quarters of FY19, as the ripples of demonetisation, goods and services tax (GST) and a spike in banks’ non-performing loans (NPL) fade. An increase in earnings would bring down the P/E multiple, assuming same levels for the indices, thereby making the markets less expensive. 



“Nifty earnings growth could rise to double digits from the September 2017 quarter, after stalling around 2 per cent CAGR for the past five years," said foreign brokerage CLSA in a recent note. “The macro environment seems favourable as the disruptive forces of demonetisation, GST and NPL recognition fade, creating a low base from which to launch healthy year-on-year earnings trends."



India


Despite the prediction of a revival in earnings growth, the same in the past few years has always been lower than initial estimates. It will be interesting to see if the trend going forward will be any different. The latest gross domestic product (GDP) growth, at a three-year low for the first quarter, has not been encouraging. Analyst attributed the weak GDP data to specific factors such as GST-related destocking, rupee appreciation, weaker agriculture activity and higher subsidy payout. 


According to Crisil, GDP cannot grow at a fast clip in an environment of subdued global growth and weak investments. “For fiscal 2018, we are in the process of revising down our GDP growth forecast from 7.4 per cent stated earlier. That said, normal monsoon, softer interest rates and inflation, and pent-up demand (demand that was postponed due to demonetisation) will support consumption growth in the remaining quarters. There will also be a mild push to consumption from budgetary announcements," said CRISIL in its research note on Thursday.



The CLSA report added: “A meaningful and sustained earnings recovery will need a capex-cycle revival, which would follow a resumption of growth in the housing segment. Best-in-two-decades affordability and the Modi administration’s push will help revitalise housing market activity, which will create more than two million jobs per year. With the government turning more favourable on rural policies, we have already seen a small revival in rural wage growth, which should help consumers, autos and housing, among others." 


http://smartinvestor.business-standard.com/market/Marketnews-481112-Marketnewsdet-India_most_expensive_market_on_forward_earnings_multiple.htm#.WasS74iGO00

Saturday, September 2, 2017

GREAT POLICE MAN...

Meet Abhishek Patel, who ferried a bomb on his shoulder to save 400 kids

I acted on pure instinct, I had no time to think: Patel

Veer Arjun Singh 

Friday, September 1, 2017

01 SEP-17 DAILY POSSIBLE ACTION

INDIAN STOCK MARKETS : SEPTEMBER SERIES DAILY STUDY REPORT

US MARKETS: DOW UP 58 POINTS NASDAQ UP 60 POINTS
EUROPE: DAX CLOSED IN POSITIVE WITH 50 POINTS, BUT RECOVERED 0.7% OF THE FALL (-177) IN TWO DAYS
ASIAN MARKETS: MILDLY POSITIVE
SGX NIFTY CURRENTLY SUGGESTING: + 3 POINTS
MACRO ECONOMIC NEWS: Q-1 GDP IS @ 5.7% IS CONTINUOUSLY DECLING TO TOUCH 3 YEAR LOW
CORPORATE EARNING ARE OK BUT THEIR INVESTMENTS ARE NOT COMING DUE TO BAD DEBT ISSUES, IS LIMITING THE GROWTH EXPANSION
COMPANY SPECIFIC NEWS:
DR REEDY GOT FAVOURABLE NEWS
RANBAXY SINGH BROTHERS ISSUE EFFECT FORTIS, ALREADY LOST 5.44% YESTERDAY.

IMPORTANT DISCLAIMER: 
  • STOCK TRADING LOOKS EASY AND REWARDING BUT ACTUALLY A HIGH-RISK VENTURE AND TRADERS ARE MOST TO LOSE, DEMANDS CALM MIND AND PSYCHOLOGICAL BALANCE. 
  • IT IS A CHALLENGING JOB DUE TO PRECISION IN TIMING AND LIMITED CAPITAL AVAILABLE WITH RETAIL TRADERS.
  • SO ALWAYS CONSULT YOUR EXPERT ADVISOR AND NEVER FORGET TO MAKE YOUR STUDY TO GET SUCCESS.
  • NOT TO DISCOURAGE BUT REQUEST PARTICIPANTS TO DEDICATE REASONABLE TIME & ENERGY TO EMPOWER THOSE MOST REQUIRED QUALITIES TO MAKE HUGE WEALTH CREATION FROM MARKETS.
==========================================================
POSSIBLE ACTION AS PER MY STUDY: CONSIDER FOR EDUCATION

NIFTY: SUPPORT: 9885 & 9856 and RESISTANCE:  9946 & 9972          
BANK NIFTY: SUPPORT: 24230 & 24185 and RESISTANCE: 24490& 24560                         
RELIANCE: SUPPORT:1576, 1572 and RESISTANCE: 1606-08         
AXIS BANK: SUPPORT: 494-92 and RESISTANCE:  506-08, crosses 516-18 in due course.          
YES BANK: SUPPORT: 1732-28 and RESISTANCE: 1758-62, 1773          
ICICI BANK: SUPPORT: and RESISTANCE:            
SBIN SUPPORT: and RESISTANCE:            
RELCAPITA SUPPORT: 801-03 and RESISTANCE: 816-21, stock is very strong may touch 860, may consider a buy from 782-78          
REL INFRA: SUPPORT: 491-89 and RESISTANCE: 516-18            
CENTURY TEX: SUPPORT: 1208-16 and RESISTANCE: 1248-52, likely to cross yearly highs soon, no shorting advisable.            
TATASTEEL: SUPPORT: 524-26  and RESISTANCE:  542-44          

VEDL: SUPPORT: 303 &301 and RESISTANCE: 314 huge investment plans.