THE ONLOOKER

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INDO-PAK JOINT VENTURE MAY BE ON ANVIL!

Indian burses welcomed the verdict regarding the stability of the Government. The sensex and nifty has risen remarkably to -day i.e 23rd July 08. Well it may be initial euphoria as well. One cannot be certain that days of the bear are over. Better wait and watch is advisable for serious investor, day trader are indulging usual betting and making their money. Most of them off course making up their loses what they might have incurred earlier. However there is some good news in international scenario. The crude price is cooling down, though that also cannot be taken as certainty. With the crude price coming down, if at all, reining inflation can be easier. The progress of monsoon is hopeful and likely to meet the expectation. Though the growth rate is under pressure in the current quarter and likely to affect the projected growth rate at the year end. Still if the situation improve day by day, than it would not as bad as the market Gurus have been predicting. The mutual funds are sitting

SHAKY STOCK MARKET!

Indian stock markets are currently rocking due to ongoing political crisis. The stability of government is the major factor. If the present government escape the fall, appears to be imminent due to lefts joint opposition on nuclear deal, the market may (watch my word “may”, it cannot be assured!) look up. In fact the global oil price is showing sign to calm down. The last crude price fall was very sharp it was around $20, last week in the international market. The fall was registered in both New York and London “Brent” crude prices. In India the market is not watching the triangular situation, the stability of government, the inflation and the global crude price. With the ray of better days ushering in the crude market, to-morrow is the d-day, the government stability for till it completes its tenure will be confirmed; last but most important factor is the inflation. The measures taken up, by the central bank, are likely to show results in two months now. Prices of some cereals and fo

CAR INSURANCE COMPANY

When you buy a car, next thing you do look for car insurance. Even with your existing one you need to renew your car insurance time to time. Insurance rates are sometime changing faster than gas price. So, when you buy your car insurance; spending little time to compare the rates offered by different car insurance company can save you a lot of money. www.carinsurancerates.com offers you free quotes of multiple insurers. The site offers guidance and information that help you to pick up insurance cover for your car of any make, anywhere. While determining the premium of your car insurance, the insurance companies take several things into their consideration. First of all your driving history, that is most important to them, lesser the spot better the rate; that is the rule. Next comes; the sticker price, cost to repair and replace, safety features et al. Car Insurance rate.com has a toll free number, feel free to talk to them and seek their guidance. Their customer care is excellent

INDIAN GROWTH STORY - A SHAM!

Recently ended G8 summit and India`s move a step forward towards nuke deal; has raised lot of hues in media locally and internationally. Indian growth story, despite of it`s current depression due to uncontrollable inflationary pressure, is gaining popularity. Political mileage is being extracted to maximum extent by the ruling parties and its allies. Though; the leftist have withdrawn their support, portraying a bleak outcome of the deal in future, for imaginary reasons, best understood by them. The Government seems to be unperturbed. For the common men, especially the educated urban people, the inflation and the nuke deal both are important but the former merits immediate attention. The crude price is making record every passing day, breaking the previous high with no sign of respite, makes it impossible for India or any other developing nation to rein inflation. Indian growth story is passing, albeit hopefully for short period, though a bad time. But is the growth story consistent

INFLATION; INDIAN JUGGLERY

Inflation is word what perhaps a primary school boy is getting use to. So much the pressure of inflation affected all strata of society in India or greater part of the globe. In India as with everything else, even inflation is not without its doze of hypocrisy! It is one of the few countries where a democratic Government juggles with the figure. Most of the developed and developing countries use Consumer Price Index (CPI) to calculate inflation, but for India it is Whole Sale Price Index (WPI). Government`s plea is that they cannot collect the data always on which the CPI is based! Ridiculous! WPI includes 100 out of 435 commodities, what are not important from consumer point view. In fact the retail price what consumer pays is much higher than the wholes sale price. In recent months there has been more than 30% hike in several commodities what are for common consumptions. In some cases it is even 60%! Whereas the latest Government figure declared 11.63% rate of inflation. Imagine the

Global Stock Markets; the difference

The inflation in tandem with spiraling oil price is taking heavy toll on stock indices in Indian as well as all the major global burses. The south bound journey of stock indices is continued all over. No one seems to know how long they will last or when they will bottom out! Individual investors are shaky to burn their fingers; institutional investors seem to have diverted their fund towards more rewarding commodity market where speculation in oil is high. This may be another reason for the oil price`s apparently sky bound journey. The recent declaration of Iraq to open up their oil fields to corporate sectors is likely to take time. In the mean time Saudi Arabia has promised to increase their output from this month but nothing seems to work. Every day the oil price is touching new high and so the inflation. However, if we compare the different stock markets, we find that the countries which are commodity exporters are better than those economies which are net commodity importers. For

Hedge your investments

With spiraling oil price followed by inflation is taking toll not only on your monthly budget but on your investments and future investment options. In India the current inflation rate declared a week ago is around 11.05% . Mind you this is based on taking the price hike of few specific commodities, metal and oil prices (edible and fuel both). But the actual rate of inflation varies from city to city and depending upon quantum and type of individual consumption. The inflationary pressures are maximum on the labor forces of unorganized sector. Here in India they comprise 92% of total work force, they are deprived of the automatic adjustment of dearness allowance on the pay with the rate of inflation as available in organized sector. However, the mass in the lower rung of working class are not bothered about investment and portfolio management and safeguard their investments against inflation. It is only the people middle class whether professional, businessmen or service holders in orga

ANSWER FOR CANCER; A NEW HERBAL CURE

There are lots of debates on over the use of cell phone for years. There is some evidence available that it may cause brain cancer. Not only that, it affects that part of the brain which remains in the side the user usually hold the phone. Recently in Britain extensive research is undertaken to find the facts. It is likely to take few years, since the use of cell phone is hardly a decade old. The industries concerned, in the mean time, fearing any adverse report in the pipe line, are making the hay while sun shines. Cancer the dreaded disease is yet to find a remedy. The research is on all over the world, some breakthrough is made time to time but no proper cure is found yet. Like many inventions that took place, while searching for something else, such as x-ray; a wonder drug for cancer seems to have been found out in India. It is in the north-eastern part of India, in the province of Manipur, the scientists have identified finally and gave name of a plant, traditionally called `Kam-s

OIL TO SPOIL

The oil price rise is presumably out of fear of irregular supply from Nigeria, Venezuela and Middle East crisis in Asia. Beside this off course, the hands of middlemen and OPEC countries are conspicuous. In terms of extracting exorbitant price the OPEC countries are keeping crude oil production at low ebb. These countries have nothing except oil. Their fortune will dry up along with their oil wells; this they know well. So, they are all out making hay till the oil wells are dried up. That way you cannot blame them, their lack of concern for those who are going starve due to oil price hike and resulting chain reaction causing all around inflation, is historically usual. The rich countries like US, West European counties, in far eastern Asia like Japan are dolling out subsidies to absorb the shock for time being. But they too are feeling the tremors, keep afar the poor sub-Saharan countries, after all stark naked has nothing to lose! This meteoric rise of oil price, has chosen a time, wh

Reining Indian Inflation

A #1 English daily in India reads “ Govt adds fuel to ire” ; this is the reaction of yesterday`s Indian Govt. announcement of fuel price hike! Can any Govt. ever subsidize a product which has a ever increasing domestic consumption and 70% of the gross consumption is imported? Obviously the reply is no. So, like any other Govt. the Indian Govt. is left with no choice but to hike the price of fuel. The price of fuel in India is still controlled by Govt. In fact in the days of globalization, how long that can be continued is anyone`s guess. Here any unpopulist action taken by Govt., is encashed by the political parties, those who are not in power and aspiring for it. “The public opinion is humbug” –as the old adage goes. In the state of West Bengal (during colonialisation this state became the first to come in touch of West ironically!) called for a “bandh”, paralyzing the life for two days. As in twoconsecutive days, two different political parties call given call for “total strike”; wha

RISING FUEL PRICE RAISING INDIAN SOFTWARE INDUSTRIES PROSPECTS

Indian sunrise sector, IT industry was reeling under pressure to keep its profit margin throughout the last year. The reason was Indian Rupee was gaining strength against Dollars. Results, the imports became cheaper and exports were less remunerative. This is obvious every time Rupee appreciates in terms of Dollars. Dollars being till date the major currency for international trade, the fluctuation of exchange rate affects the profit margin of any industry that either import raw materials, capital goods, labor or anything and so with the industry that exports similar goods or service. Major IT companies like Infosys, TCS, Wipro, Satyam and all other that sell their products or services, suffered loss in comparison to their profit margin for previous couple of years. Their share price shot up and market capitalization grew to a level, never seen ever, it touched its zenith in late 2007. The prolonged euphoria lasted so longer than expected in Indian stock market is truly nerve wrecking

UN`s Economic forcasts

The world economy is “ teetering on the brink” of a severe downturn that is how it is observed by UN in their mid-year economic projection. The global economy is expected to grow only 1.8% in 2008 as against 3.8% in 2007. This downturn is likely to continue with only little respite in 2009 with 2.1% growth, as the UN report said. The developing countries are likely to suffer badly, since they would grow at the rate of 5% this year and 4.8% next year, compared to a growth rate of 7.3% last year i.e 2007. UN economists observe that credit crisis deepening due to US led housing price slump, weakening of dollars, oil price sky rocketing and commodity price following the trail, are causing major imbalance in global economy. Thus it is impeding the growth all around the world. However, the UN report said the final figure will largely depend on developments in the US. Even the global growth may fall to 0.8% if the US sub-prime mortgage market turmoil has a more serious impact on developing c

Dollars losing its sheen

I still remember the name of an old movie “For a few Dollars more”, because of it`s title music. For years it lingered in my years. Perhaps the movie was made in early 70s, when gulf crisis and Breton Wood formula both emerged, to stay till to-day. The gulf crisis pushed the petrol price higher than ever imaginable and the fixed currency exchange rate, what was is vogue, switched to market driven force to determine the exchange rate of all the currencies. Off course the Soviet Bloc excluded them to be penalized later. It is all history now. However, for the second half of the last century, after the world war, dollar gradually reached to a height what can be called a safe heaven. The US economy, the Federal Bank`s apt guidance and the unmatchable technological innovation in US helped the dollar to its current position. The new mantra, consumerism, what US economy has been advocating and what rest of the world is following till now , appears to be at stake. The dollar waning sheen is

Bio-Fuel : Palm Oil

The overwhelming enthusiasm for bio-fuel to counter the demand of fossil fuel and use something environment friendly, is not all that going well. Last month British Prime Minister Mr Gordon Brown changed the rule that in UK 2.55 % bio-fuel to be sold in Britain for petrol and diesel. There is a report the Greenpeace activists staged a protest dressing orangutans to protect the tropical rain forests and drying out the peat lands in Malaysia. Where to augment the cultivation of palm oil the rain forests are being devastated. As per Greenpeace this harming the environment by releasing carbon dioxide. Palm oil was introduced in Malaysia in 1910 by a Scotsman. This oil even few years ago use to be major edible oil specially for the poor, it was very cheap in comparison to other edible oils. It is also used to make soap and finally found fit for biofuel. As it promised a clean , green and alternative to petrol. This caused a price hike to near about 70% over the last year. The price hike

INFLATION AND PRICE

The whole sale price index in India has increased by 7.4% or exceeded it within a very short span of time. What does it mean? Is it due to inflation or there is something else. The price of rice, wheat, edible oil , vegetables, chicken , mutton besides steel and cement have touched the sky. Rein the spiraling price seems difficult for the government. Though some measures like hiking the cash reserve ratio that means withdrawing the liquid funds from the market through banking system by central bank at the behest of the government is being taken. How far they are going to check the price rise? Or allowing imports of essential commodities like edible oil, banning export of rice to check the short fall; are certain to bring some cooling effect in the market. But it is not likely to take back the price as were a before six months ago. Let us consider these facts. The price rise of food stuffs is currently plaguing the world. The Wall Mart in US , for the first time rationing the sale of ri

The American recession

The global slowdown in economical progression is understood to have been caused by American recession. Well, most of developing countries on this planet depend much on American economy. After all America is the biggest importer of goods and service. What caused American recession is a matter of great debate these days. Recently I found some interesting reports hitting the headlines of some leading dailies. While surfing the net I stumbled across a site worldpress.com where renowned economist Prieu Du Pleissis blamed four factors for this development. They sound the same what most of the experts diagnosed. First of all , the slowdown in US economy though drawing attention in recent months but it started in no less than six years ago. The wages in US is traditionally high. There a taxi driver earns about $250 per day. Where as in India they earn in terms of USD about $5-6 only! Here is the key for the reason why US heavily has to depend on outsourcing. To remain competitive, most of the

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A true story

Here goes a story which has reference to Indian history during Mughal dynasty. Note, "Kulcha" .. is a hand made loaf, baked in manner to last for days and used to have tasty condiments within its thick and soft platter. This is not exactly a "funny" story. Nevertheless, it makes interesting reading because of a possible supernatural element in it. Perhaps this could be categorised under, "strange facts", but I am posting it here instead of starting a different thread for that. Before going out on an expedition to the Deccan, Mir Qamaruddin Khan, (a subehdar under Aurangzeb), visited the the sufi saint Nizam-ud-din Aulia to seek his blessings. The saint gave him "kulchas" to eat, and carry with him on his long journey to the south. When the subehdar was leaving Delhi, Hazrat Nizam-ud-din asked him whether he had eaten any of the kulchas given to him. Qamaruddin replied that he had in fact eaten seven of them and packed the rest for the journey. Pl

Think how it started

It was the accepted practice in Babylon 4,000 years ago that for a month after the wedding, the bride's father would supply his son-in-law with all the mead he could drink. Mead is a honey beer and because their calendar was lunar based, this period was called the honey month, which we know today as the honeymoon. What a downer!!!! It was not at all about ummm u know what! It was all about the booze!!!

Chanakya's Quotes - Worth Learning

************ ********* ********* ********* ********* *** "A person should not be too honest. Straight trees are cut first and Honest people are screwed first." Chanakya quotes (Indian politician, strategist and writer, 350 BC 75 BC) ************ ********* ********* ********* ********* *** "Even if a snake is not poisonous, it should pretend to be venomous." Chanakya quotes (Indian politician, strategist and writer, 350 BC-275 BC) ************ ********* ********* ********* ********* *** "The biggest guru-mantra is: Never share your secrets with anybody. If you cannot keep secret with you , do not expect that other will keep it. ! It will destroy you." Chanakya quotes (Indian politician, strategist and writer, 350 BC-275 BC) ************ ********* ********* ********* ********* *** "There is some self-interest behind every friendship. There is no Friendship without self-interests. This is a bitter truth." Chanakya quotes (Indian politician, strategi