As rupee, economy falter, investors look towards US equities

In July 2012, when ICICI Prudential AMC launched its US Bluechip Equity, Nimesh Shah, CEO of the fund house, enthusiastically promoted his scheme across the country, trying to hardsell the advantages of picking up exposure in some of the world’s biggest blue-chip companies. After 30 roadshows during the new fund offer (NFO) period, the fund managed to collect only Rs 57 crore.
“We failed then,” Shah recalls with dismay. What it failed to mobilise at the time of launch, the fund has more than compensated for over the last couple of months, with its assets under management (AUM) surging from Rs 105 crore in June 2013 to Rs 155 crore by August 31, 2013 as the funds have generated superior returns and investors seeing value in diversification with sharp depreciation of rupee.
Others, too, have gained. Franklin Templeton, which launched its FT India Feeder Franklin US Opportunities Fund in January 2012, collected Rs 104 crore during the NFO period, while its AUM surged from Rs 220 crore in June to Rs 377 crore by August end. DSP Blackrock US Flexible fund that was launched in July 2012, had seen AUM surging to Rs 80 crore by August-end, up from Rs 33 crore in June 2013. In aggregate, the three US-focussed schemes saw their AUM jump by over 70 per cent from Rs 358 crore in June 2013 to Rs 610 crore in August 2013.
While the schemes focussing on exposure into US equities recorded a net addition to their AUM between July and August, the overall equity AUM during the month of July witnessed a net outflow of Rs 1,652 crore, primarily on account of redemption pressure. The data for the month of August though was slightly encouraging as there was a net inflow of Rs 467 crore into the equity schemes during the month.
“It’s a new phenomenon and inflows have been good with informed investors moving into this category. While the overall numbers are still small, at a time when other equity funds are witnessing redemption there have been inflows in this category,” said Pankaj Sharma, EVP and head of business.
Jai Mahakal.

Operation Puttur: TN, AP police teams nab two terrorists in joint operation in Andhra

CHITTOOR: Two suspected terrorists were taken into custody while two others escaped and a police inspector succumbed to stab wounds during a 12-hour joint operation by police teams from Tamil Nadu and Andhra Pradesh in the sleepy town of Puttur in Chittoor district on Saturday. The police teams were assisted in Operation Puttur by the elite Octopus forces.

Tamil Nadu and AP police teams launched a search operation in Puttur in the early hours of Friday following inputs from a terror suspect arrested earlier that a group of terrorists was holed up in a building and planning to attack the Tirumala temple with bombs. During the searches the police found a pistol and two bombs, but the team was reportedly overpowered by the terror suspects and police inspector Lakshman received knife injuries. Lakshman died while undergoing treatment at a hospital in Chennai on Saturday morning.

The joint operation, which sent shockwaves in Chittoor district, ended at around 2.00 pm. The police arrested terror suspects identified as Bilal Malik and Panna Ismail into custody while two others escaped. The police did not use firearms fearing stocks of explosives in the building. They used fired teargas shells to bring the terrorists out of the building. Bilal Malik and Panna Ismail were injured in the operation and they were shifted to hospital.

Along with the terror suspects, a woman and three children stayed in the building. The woman and children came out of the building around noon and they were taken into custody by the local police. According to locals, the suspects have been staying in the area for about six months. They identified themselves as iron scrap merchants. The family had been evasive and did not mingle much with neighbours. The men used to return home late in the night.

The police had a tough time controlling the surging crowds. Hundreds of people gathered in the area. The street where the building is located was cordoned off to ensure smooth operation.

According to police, the suspects were involved in about 10 cases in Tamil Nadu and the murder case of a BJP leader. They allegedly used a pipe bomb during the visit of senior BJP leader L K Advani to Tamil Nadu. All the suspects hail from Coimbatore.

Police suspect that the alleged terrorists were planning to hide bombs in traditional umbrellas brought from Chennai for the ongoing Garudothsavam of Lord Sri Venkateswara at Tirumala.

The police began the operation after a terror suspect arrested at Tiruvallur in Tamil Nadu recently gave information about the other suspects staying in Puttur. The town is located about 60 km from Tirupati and is famous for its scores of traditional bone-setting clinics and betel nut powder. People from all over the country visit Puttur for bone healing.

Growth will rise to 5.5% in FY14 on farm output: RBI TNN & Agencies | Oct 5, 2013, 01.29AM IST

RAIPUR: The Reserve Bank on Friday said the economy would grow by 5-5.5% in the current fiscal, pinning its hopes on good farm output and improved exports. "We have no reason to dispute the growth rate projected by the government at 5-5.5%," RBI governor Raghuram Rajan told reporters after a board meeting here. He based his optimism on expectations of a good kharif crop, improvement in exports and core sector performance data.

"...first estimate of kharif crop is significantly above the first estimate of last year. I think if we see some pick-up in exports...core sector is improving in performance. We would hope we would reach that range of 5- 5.5%," he said. India's economic growth rate slipped to a decade low of 5% in 2012-13 and declined to 4.4% in the first quarter (April-June) of the current financial year. The ADB on October 2 lowered its growth projection for India in the current fiscal to 4.7% from an earlier estimate of 6%. It said the country's economy has been under pressure with the recent depreciation in the rupee and capital outflows adding to structural constraints. The Prime Minister's Economic Advisory Council (PMEAC) scaled down its growth forecast for the current fiscal to 5.3% from 6.4% earlier.

Referring to the finance ministry's decision to infuse additional funds in PSU banks to enable them to provide cheaper auto and consumer goods loans, Rajan said the scheme is still being worked out. "I just want to emphasize that discussion is taking place on what can be done. Something will be announced as and when the scheme will be put together," he said. The decision to infuse additional capital in PSU banks, over and above the Rs 14,000 crore provided in the budget, was announced after a meeting between Rajan, finance minister P Chidambaram and Economic Affairs Secretary Arvind Mayaram.

Modi leads, BJP follows: Sena on 'toilet before temple' remark

MUMBAI: The Shiv Sena on Saturday said that Narendra Modi's "toilets first, temples later" remarks show that the BJP is not in touch with the views of it's prime ministerial candidate.

"Modi had to face flak on the toilet remarks. He said 'Jai Jairam' instead of 'Jai Shri Ram' which led to running around in BJP. The lesson to be learnt from this episode is that now not even the BJP knows what stance he takes," Sena's mouthpiece Saamana said in Mumbai.

"The picture is that of Modi leading and BJP following. What can we say. All should participate in the toilet building work. As for the temple building work, we will see later," it said.

"Through the 'toilets first, temples later' remark, Modi put forth a courageous thought. It is surprising that Congress attacked him for that.

"In fact, Modi is saying what Jairam Ramesh said earlier...so, Congress should appoint Modi as a brand ambassador for the toilet project and give a big amount as remuneration to BJP," the editorial said.

"Earlier, when Ramesh put forth the views, BJP, VHP and the Sangh parivar criticized him. Now, BJP leaders are defending Modi," it said.

The editorial further said that if Modi and Ramesh also announce building schools and public facilities where illegal mosques and madrasas have been built, it will be a true mantra of secularism.

"Build toilets first and temples later," Modi had said at a function organised for the youths on October 2. Modi had said he dared to say so even though his image as a Hindutva leader did not allow him.

Uddhav had recently welcomed Modi's elevation as prime ministerial candidate of the BJP, saying that after 'samudra manthan' (ocean churning), the nectar had emerged.

"Under the present circumstances, if the Congress could be defeated and Hindutva could be promoted, with the country's reins going in the hands of Modi, the Shiv Sena would wholeheartedly welcome it," Uddhav had said. jai mahakal |

Panvel (Mumbai) – The Next Real Estate Destination

Mumbai
The last born in the family always gets the best in terms of resources, love and also gets the advantage of being parented by more experienced parents. Similarly, in the real estate space in Mumbai, Panvel is now getting the benefit of the following:

1. CIDCO’s experience in developing a modern city i.e Navi Mumbai. 
2. A more prosperous middle class as compared to the earlier two decades. 
3. More perceptive builders as they now have the ambition to benchmark themselves against world’s best developers. 
4. A completely bare canvas (undeveloped land) which will enable builders to develop massive townships. 
5. The state government is also connecting Panvel by faster modes of transport like the Trans Harbour Link. 
6. Railways have a target to speed up the rail connectivity so that commuters can reach CST in 35 minutes as compared to the 77 minutes now. 
7. With the widening of the Sion Panvel Highway and the addition of flyovers, there is a signal free ride from Chembur to Panvel. From Chembur to CST, is the eastern freeway, so one can get to Mumbai CST from Panvel and only negotiate two traffic signals.

Panvel is also the largest and most populated city in Raigad district and is considered one of the most promising real estate markets in India. It is surrounded by some major MIDC (Maharashtra Industrial Development Corporation) managed regions like Taloja, Patalganga, Nagothane, Roha and Khopoli. Some of the major Indian companies like L&T (Larsen & Toubro Limited), Reliance, Hindustan Organic Chemicals Ltd, ONGC and IPCL are located in and around Panvel. India’s largest container port JNPT is also located near Panvel.
Panvel falls between two major cities of Maharashtra ie Mumbai and Pune and is known as gateway to Konkan.
Considering the potential and location advantage Panvel offers, many well-known developers such as HIRCO, Kalptaru Group, Marathon Group, Indiabulls, Arihant Superstructures, Monarch Universal, Godrej Properties, Wadhwa Group are either acquiring or have already acquired huge land parcels. After the start of the much waited Navi Mumbai Airport and Trans Harbour Sea Link, Panvel will see rise in real estate requirements and infrastructure growth.

Jammu and Kashmir legislative assembly

SRINAGAR: The Jammu and Kashmir legislative assembly on Saturday deferred till Monday the discussion on allegations levelled by former Army chief General (Retd) VK Singh that politicians in the state were paid money by the army to get certain jobs done.

The decision was announced by speaker Mubarak Gul after several MLAs from Jammu sought the postponement of the discussion in view of Navratras beginning today.

As soon as the house assembled, BJP MLA Ashok Khajuria pleaded that the discussion on the issue, which was listed for second sitting of the House today, be deferred till Monday.

Khajuria got support from opposition PDP members and CPI(M) MLA M Y Tarigami, who said religious sentiments of the concerned members should be respected.

Law minister Mir Saifullah said the government had no objection if the Speaker deferred the discussions.

The speaker had yesterday announced the discussions on the allegations would be held today.

The issue was raised in the House by PDP leader Mehbooba Mufti, who said, "Our image has been maligned by his (Singh's) allegations. I want to know when you are going to conduct the discussion."

A report in a national English daily last month claimed that a secret army intelligence unit, set up during Gen Singh's tenure as the chief of Army Staff, paid money to a Jammu and Kashmir minister to topple the Omar Abdullah-led government in 2010.

Gen (Retd) Singh has rejected the allegations that money was paid to topple the government of the day and later clarified that funds had been given to many ministers in the state right since Independence to get certain jobs done.

The ruling National Conference has demanded a CBI inquiry into the allegations. The ministers of the ruling party have also moved a privilege motion against the former Army Chief, which is pending before the Speaker for a ruling. 

jai mahakal |

US shutdown: No end in sight to the crisis PTI | Oct 5, 2013, 10.26 AM IST

WASHINGTON: Amid continued political impasse leading to a government shutdown, the US appeared to be no closer to resolving the crisis, the first in 17 years, with time fast running out for raising the debt limit.
Some eight lakh federal employees have been furloughed as a result of the shutdown -- which was in its fourth day yesterday.
The Congress needs to increase the federal debt ceiling by October 17 to avoid having the US default on its obligations.
House of Representatives Speaker John Boehner, following the meeting with his party colleagues, offered no clue as to how he intends to resolve the problem.
"We are locked in an epic battle," Boehner told his Congressional colleague urging them to hang tough.
"This isn't some damn game," Boehner told reporters.
"The American people don't want their government shut down, and neither do I. All we're asking for is to sit down and have a discussion and to bring fairness to the American people under Obamacare. It's as simple as that. But, it all has to begin with a simple discussion," he said.
The White House said it would not negotiate till the Republicans took steps to end the government shut down.
This among other things is affecting its capabilities to monitor Iran sanctions.
"It illustrates the consequences that the Republican shutdown continues to have on the government's missions and workers across the country. It is time for the Speaker of the House to bring up the Senate-passed funding bill and just vote," White House Press Secretary Jay Carney said.
On Friday, 27 House Armed Services Committee Democrats urged Boehner to bring a clean continuing resolution to the House floor.
In a letter to the Speaker, the Democrats explained how the shutdown is endangering the national security and must end.
The House should have an opportunity to vote to end the terrible impacts of the current shutdown and to reinsure the national security, they wrote.
Yesterday, for the first time since 1996 and only the second time in modern memory, the Bureau of Labor Statistics did not issue its monthly jobs report, as a result of the shutdown of nonessential government services.
jai mahakal |