Sensex and NIFTY crash as Dow Jones plunges


Image Caption – Sensex plunged 1.61%, while NIFTY crashed 292 points on February 06 in the wake of US market crash.
Image Source: Reuters


Mumbai, February 06: The Bombay Stock Exchange extended their losses for the sixth successive session with the benchmark Sensex falling by another 561 points to close at a one-month low of 34,195.94. Along with Sensex, NIFTY recorded a loss of over 292 points at the open. This loss comes in the wake of US markets suffering a setback, with Dow Jones losing 1252 points at its opening on February 06.

After opening at 33,753.78, the BSE Sensex continued its slide to hit a low of 33,482.81 as selling gathered momentum in tandem with weak global leads. However, value-buying emerged at several counters during the late trading session. The benchmark finally ended at 34,195.94, down 561.22 points, or 1.61%.

These crashes in the market can be attributed to the crashes in US markets. The Dow suffered its worst point decline in history February 05. It amounted to 4.6% – the biggest decline since August 2011, during the European debt crisis.

However, there were many stocks that braved the situations and recorded as high as 13% rise in the day. SpiceJet rose 13%, followed by Intellect Design Arena – 9% – Polaris Consulting gained 7.3%, while Crompton Greeves went up 7% among the constituents in the S&P BSE 500 index.

Source: CNN, Business Today

BSP may form alliance with BJP: Akhilesh Yadav

Unnao, Uttar Pradesh: Amidst the election heat in Uttar Pradesh, Akhilesh Yadav, Chief Minister of Uttar Pradesh, was reported saying that the voter in the state should not trust Bahujan Samaj Party (BSP) as it might join hands with Bhartiya Janata Party (BJP) after the assembly elections.

He added, “Buaji (Mayawati) is saying she will sit in the opposition if she is unable to form government. Elections are not over yet, but she is ready to sit in the opposition.”

He claimed in an election rally in Unnao that Mayawati cannot be trusted upon and she is capable to join hands with anyone. Sighting the example of her celebrating ‘Rakshabandhan’ with a BJP leader in the past, he said that it could happen again.

Yadav’s remarks came after the BSP leader said that she would rather be in opposition than form an alliance with BJP to form government in UP. She also had accused the saffron party of spreading rumours of an alliance with BJP.

Akhilesh Yadav made his stand on bribery clear by cautioning the policemen against taking bribe. All the policemen would be tracked if any complaint was received on “Dial UP 100” platform.

Sourced from NDTV and TOI

Akhilesh-Mulayam feud takes a new turn

Uttar Pradesh CM and Samajwadi Party National President Akhilesh Yadav had over 200 legislators sign affidavits in his favour for the upcoming U.P elections. Amidst the show of power in the SP camp, Akhilesh claimed to have backing of no less than 214 of the party’s 229 MLAs and several office-bearers, which is pivotal if the Akhilesh faction wants to gain the party’s famous symbol, the bicycle.

Hindustan Times quoted Sunil Singh, member of legislative council as saying, “team Akhilesh is meeting EC (Election Commission) tomorrow. Affidavits are being signed, as he was seen coming out of the meeting briefly before returning to the CM’s residence.

The Election Commission announced yesterday that polls in Uttar Pradesh will be conducted in seven phases between February 11 and March 8 where SP will be seen locking horns with the BJP, BSP and Congress.

One of the CM’s close aide SP MP Naresh Agarwal claimed that Akhilesh had the support of majority of the party’s MLAs, MLCs and MPs.

On the other hand, the Mulayam camp was prepared with signed affidavits of MLAs, MLCs and MPs which the party leader planned to furnish to the EC but their number was still unknown.

Assembling at his 5 Kalidas Marg residence, Akhilesh addressed reporters and told them to buckle up for the polls in ensuring a landslide for the party.

News Source- Hindustan Times, New Indian Express

Image Source- Newshunt

UP By-polls: BJP wins Muzafarnagar

BJP took the Muzaffarnagar seat from UP’s ruling party, Samajwadi Party, while Congress won the Deoband seat. The results of two of the three by-polls in the State were announced today.

The win is huge for the BJP with the 2017 assembly elections in Uttar Pradesh, right around the corner. According to the latest trends, Samajwadi Party was leading in Bikapur. “Congress has won Deoband (Saharanpur), while BJP has won Muzaffarnagar seat. SP is leading in Bikapur (Faizabad), where counting is still underway,” UP Chief Electoral Officer, Arun Singhal told PTI.

According to a report by NDTV, Muzaffarnagar has been the ruling party’s stronghold since 2012. While Congress’ Mavia Ali won the Deoband seat, the Muzaffarnagar seat was secured by BJP candidate, Kapil Dev Agarwal. The Bharatiya Janata Party and its allies have won 7 out of the 12 seats in the by-polls conducted across eight states.



Beef search on train: Gauraksha leader warns SP on arrests, threatens riots

Surendra Singh Rajpurohit, a right-wing activist who formed the Gauraksha Commando Force, has reportedly threatened Prembabu Sharma to get ready for a repeat of “September 2013”, when the town faced large scale communal riots over cow slaughter rumours. This comes after the arrest of two Gauraksha Samiti activists for an alleged attack on a Muslim couple at Khirkiya railway station. Rajpurohit also known as ‘Tiger’ is the main accused in the 2013 riots. He blamed the police for partisan action taken against Hindu accused in the case.

Warning Sharma, he said that if the interests of the Hindus will be harmed, he will back his words with an appropriate action. In response to this, SP Sharma purportedly replied by saying, “I wouldn’t let the riots happen, even if that meant giving up my life’’ He further admitted to having received a call from Rajpurohit, but claimed that the conversation did not ended in a threat.

Rajpurohit is currently out on a bail. He has earlier been named in a dozen cases of arson and rioting. As reported by The Indian Express, a Muslim couple was apparently assaulted by at least six members of the Gauraksha Samiti at Khirkiya railway station recently when they objected to their luggage being searched on serious doubt that they were carrying beef. The September 2013 riots in Khirkiya- Chhipbad allegedly involved more than 40 right-wing activists after the carcass of a cow was found in a field. The allegation put by The Gauraksha Samiti that the cow was slaughtered proved to be wrong when the hospital later concluded that the animal had died after consuming polythene bags.




India’s Sovereign Debt Rating unlikely to be upgraded: S&P

Standard & Poor ratings agency on Monday has declared that it does not see India’s sovereign debt rating getting upgraded at least in the next year. This comes as a consequence of lack of significant, quality reforms. S&P made the statement days after the Modi government’s budget slowed the pace of fiscal consolidation.

According to Kim Eng Tan, Senior Director, Asia-Pacific Sovereign Ratings for Standard & Poor’s, “India needs to at least strengthen two of its macroeconomic metrics on growth, inflation and fiscal health,” “However, again, (a) very big improvement is unlikely to come through in next year or so… We don’t see the rating going up in the next year or so,” he further added.

Currently India is at “BBB-minus” rating by S&P. This is the lowest investment grade rating.  Since Finance Minister Arun Jaitley has pushed the deadline to cut the fiscal deficit to three per cent of the Gross Domestic Product (GDP), the ratings agency said the quality of fiscal consolidation is not as good as it was expected to be on the structural front.

Courtesy: Reuters
Courtesy: Reuters

S&P ups India’s GDP forecast to 7.9% for 2015-16; calls it a ‘bright spot’

Standard and Poor’s, international rating agency, has revised India’s growth estimate upwards to 7.9% for 2015-16 and 8.2% for 2016-17.  It has credited this growth rate to rising investments and fall in oil prices.

“India should be the Asia-Pacific region’s bright spot. We revised our growth forecasts for the country upward, reflecting new official data based on methodological improvements,” the US-based rating agency said in a statement.

Although the agency rates India among the lowest in investment grade at BBB-, the reason for the revised estimates have not been given. S&P specified its forecast in a brief note it had sent to the press. In the note, the agency said that the growth for Asia-pacific will be lower whereas India would do well.

“Weaker growth in China and Japan may be weighing on the overall sentiment, although India’s star is rising,” it said.

Through its report titled ‘Stronger US Economy and Lower Oil Prices Aren’t Boosting Asia Pacific Growth’ S&P lowered the GDP growth forecasts for China to 6.9% for 2015-16 and 6.6% for 2016, from 7.1% and 6.7% respectively. Economic data of much of Asia-Pacific region is yet to be estimated. The monetary policy makers are cutting rates and easing financial conditions and this has been seen as a clear shift in the stance taken by the central bank.

“We now expect slightly lower real GDP growth in Asia-pacific, but significantly lower inflation, higher accounts, weaker currencies and more accommodative monetary policy stances, despite our steadfast view that the US Federal Reserve will begin its long awaited rate hikes this summer,” said Paul Gruenwald, Asia-Pacific Chief chief economist at Standard & Poor’s.

Finance Minister Arun Jaitley will present the budget on February  28 which will be his first full Budget. Through it the government will bring out its growth target for the next fiscal year.

“India’s low income levels and weak fiscal and debt indicators constrain the country’s credit profile,” the rating agency said earlier. The agency added that last year’s election results have created an environment for reforms, industrial growth and political stability. It called “government effectiveness” a “neutral” credit factor.