Current Affairs

2011-01-25T11:18:00.001-08:00

http://www.norsonic.com/holly.php

2011-01-15T10:35:00.001-08:00

There has been a spam email sent from my account on Friday, 14th Jan'11 (it contains a website address in the body of the email).

Those who have received that email, I would urge you to delete it without opening the link.

2011-01-14T03:00:00.001-08:00

http://karate-chur.ch/checknow.php

North Korea Tests Nukes

2009-05-25T09:15:00.001-07:00

Today marks another step towards doomsday in the life of our planet ‘Earth’. North Korea tested nuclear weapons today, which signifies that it has the capabilities to destroy mankind.

Ever since US attacked Japan with atom bombs during the second world war, man has been trying it’s best to expedite it’s extinction from our mother planet Earth.

At this time, I remember a punch line from one of the Superman series with Christopher Reeve “ nobody wants war, but we want the fear of war”. In the present day scenario, where many countries posses nuclear capabilities, I feel it’s a matter of time since one of them goes crazy and utilises them to destroy mankind.

May God bless mankind and rid the earth of all the nukes that man has unnecessarily produced.

Election Verdict in India

2009-05-16T06:54:00.000-07:00

Today marks a turnaround in the history of Indian politics, if I may say so. For the first time since 1991, we have an alliance which is on the brink of capturing a complete majority. This augers well for Indian politics, as we had seen a decade and a half of regional parties calling the shots and in many cases, bringing the ruling party down, by not allowing/opposing passage of bills.

With the UPA set to form the government, I can safely say that this Government should last it's full tenure.

I wish them all the best and look for a stable Government at the helm!!

Swine Flu (H1N1)

2009-05-16T06:50:00.000-07:00

Swine flu, also being termed as the H1N1 virus has already spread to many countries. I've been reading a lot about it and the way it has slowly been spreading across the globe. Though the treat seems to have diminished a bit, however, given the sheer number of countries and the level of threat posed by it, we're still not out of it.

I just hope that the spread is brought under control and the virus is completely eradicated from the universe!!

Tata Nano- India’s Dream Car

2009-04-27T21:02:00.000-07:00

Most middle class Indians have a dream of driving their own car some day. Arrival of the Maruti 800 made this dream a reality for quite a few of Indian families about a quarter of a century ago.

The latest car to hog the limelight has been the Tata Nano. Not only has it given India global recognition on the one hand, on the other, it has afforded the average middle class to start dreaming of driving a car soon.

I’ve personally been very pleased with the Tata Nano being rolled out. I know there have already been quite a few hick-ups in its roll-out. Environmentalists have raised concerns over the adverse effect it will have over carbon emissions. Traffic administrators are worried about the lack of proper roads and congestion issues. With due respect to all the concerns, I believe it’s time for us to look forward to the small wonder which has already made big news.

Bookings concluded yesterday for the small wonder and I’m waiting for Nano to carve out a niche area for itself in the automobile market.

India- "Sone Ki Chidiya"

2009-04-27T20:32:00.000-07:00

"Jahan Daal Daal Par Sone Ki Chodiya Karti Hai Basera- Woh Bharat Desh Hai Mera, Woh Bharat Desh Hai Mera…."

Remember this famous song from the yesteryear, which depicts India as an affluent nation. Well, this was till a few centuries back. Then the fame and prosperity of the Indian nation became known outside its land and invaders starting invading the nation. Right from the innumerable invasions that took place till the end of the Mughal empire, to the famous British Raj; all have made merry at India's cost, so much so that India, which was once considered a very rich nation stands on the brink of poverty and hunger.

Well, sadly, the story did not end even after India gained independence from the British Raj. Post independence, we've seen the Indian politicians making merry at the ordinary citizen's cost. An astounding discovery has been close to 70 lac crores (my God I can't even count the number of zeros in this figure) been stashed away by top politicians and administrators in tax havens (countries like Switzerland). Even if we are able to bring in a portion of that money back into the Indian economy, I wonder if we will ever hear the word recession again as far as India is concerned.

Its time all of us stood united in the cause of protecting our hard earned money and bring prosperity back to the nation once famous as the 'Sone Ki Chidiya'

Tendular Turns 36

2009-04-24T01:48:00.000-07:00

The little champion Sachin Tendulkar turns 36 today. It’s often said that wine ripes with age and Sachin has given ample evidence of that in the just concluded New Zealand series. He even got the man of the match award for the way he played in the opening game of IPL session 2.

I wish him a very happy b’day and hope to see him play many more great knocks for the country. Jai Ho Tendular!!

IPL Sesion 2

2009-04-23T11:38:00.000-07:00

As expected, IPL season 2 has got to a rousing start, with all the teams learning from the last season and coming out with a lot more strategies this time around.

The scenic settings of the South African stadia has taken one and all be awe. Though it's a shame that the "Indian" Premier League is being held outside India, however, this has given the Indian out there in South Africa to feel at home with the game they love.

For the love of the game, followers can follow the latest on Cricinfo : http://www.cricinfo.com/

What ails in the world today

2009-01-30T07:42:00.000-08:00

Many a times, I've been stuck with a thought- "what ails in the world today?" The more I think, the more I'm convinced that man has been caught in the so called rat-race. Most of us are running from pillar to post to make our ends meet. Looking ahead is something that most people often indulge in, but many are not sure what lies ahead. Humans are caught between the fast paced life and the mad rush to get to the top.

As I reflect, I realise that generations gone by had a better quality of life. Not only due to the fact that they lived a life which was less streesful, but also for the fact that they had lesser demands from life in general. As we move along the growth path, people have started demanding more from life, putting more than necessary pressure on themselves.

I just wish I could free from this trend- wishful thinking- I know!!

US Job Cuts

2009-01-09T10:38:00.000-08:00

Since the last quarter of 2008, US has been facing massive job cuts. The trend seems to be continuing in 2009. Given that US is currently seeing the full impact of the recession, this is to be expected.

The good news is that the new year has brought some respite. New year means new budgets and plans. Though this may not translate into job gains immediately, I expect the situation to improve by Q2 2009.

US drives the world economy to a large extent, and the world has been watching the events in the US very closely. Hopefully they will not end being disappointed.

General Elections in India

2009-01-09T10:25:00.000-08:00

General elections are due in the coming few months in India. This gives me an opportunity to look back and think the position of the country and it's state of affairs.

Over the past few years, India has definitely been positioned as one of the countries recording a high GDP increase. Everyone acknowledges the fact that India is rising and shining. There is a dark side to it as well. Look at the terrorism graph and India ranks among the top nations dealing with it.

India has always been seen as a soft state, wherein "SAB CHALTA HAI". I hope whichever Government comes in (hopefully it's BJP for good) brings a tag of a stronger India with it. I know it's next to day dreaming, but given the series of events over the past few months, that's what I feel carries hope for the common man.

Satyam and Corporate Governance

2009-01-08T09:19:00.000-08:00

Corporate governance in India has been jolted yet again, with the Satyam scam hitting the Indian financial market. The most disturbing aspect of the whole affair has been fact the auditing firm PWC were meek spectators, whilst the scam went on unabated for the last few years. Being a chartered accountant myself, I know the nuances associated with auditing financial statements.

The sheer magnitude of the scam makes me feel that it could not have carried on, without the consent of the firm in charge of audits. This is shocking and I hope that the inquiry conducted by the ICAI goes to the bottom of this to figure out the truth. Till then, I alongwith many of my fellow members would be questioned by laymen on the integrity of the chartered accountants signing Organisation’s financial statements

Let the investors, employees and the public in general be aware of the collusion!!

Petrol Prices- Rollback

2008-12-06T12:14:00.000-08:00

The Rs.5 per litre rollback in the petrol prices by the Indian Government is certainly welcome. The common man was reeling under high inflation and was being pushed to the limit, trying to make ends meet.

Though many were expecting a much stepper cut, given that the crude oil has shed almost 70% from the peak price of $147.5 to a barrel. However, given that the oil companies would still be incurring losses on account of kerosene and LPG, I think that we can view the current cut in perspective and be ready for some additional cuts, once the price of crude falls further (Merill Lynch has predicted that the crude prices could come down to $25 per barrel in 2009)

Winds of change - Obama is US President

2008-11-05T08:36:00.000-08:00

The winds of change are here. Obama has been elected the President of the United States of America.

He becomes the first black President in the history of the United States. Given that elections have been held ever since 1789 for the post of the President, it shows that it has taken the average American more than two centuries to realize that blacks are capable to leading it’s nation. It also shows a marked departure from the high headedness of the white people in general, wherein thy believed that whites are superior.

This is definitely a welcome change and I hope that Obama fulfills the promises and aspiration of the millions of black and the down trodden, not only in the USA, but in the world as a whole.

Emergence of the new India- Gautam Gambhir Vs Shane Watson

2008-11-05T08:33:00.000-08:00

The Gambhir episode has once again shown that Indian sportsmen are no longer the enduring lot, which we were so used to seeing in the past.

The fact that the sportsmen can stand up to and even deliver verbal and physical abuse to opponents has shown that they are no longer meek, as considered in the past. I’ve known opposition players in the past having played on the minds of the Indian sportsmen. Australia has always been up to sledging, which has gone from bad to worse ever since Mark Taylor retired as their cricket captain. Steve Waugh and now Ricky Punting have taken sledging to the highest level (which is unacceptable), and it was a just matter of time before their got something back.

I, as an Indian, am very proud of Gautam Gambhir. I do not say this as he pushed Watson out of his way, it was a very strong signal to the Australians and the world in general that the mental make-up of the citizens in general and sportsmen has changed. Indians would not tolerate any nonsense from the world, without giving anything back.

Buck up Gambhir- I’m proud of you, as I’m sure the billions of Indians are. Let the white people know that it’s time the Asians are usurping their so-called supremacy in sports.

And make sure the next time someone like Watson makes you feel peeved, blast him out of the ground with your bat- ha-ha!!

Nostradamus

2008-11-04T08:49:00.000-08:00

Nostradamus, the great 16th century seer has had no known parallel. Many of the saints prophecies have come true and many more are expected to come true.

The most notable of them is the talk of the third anti-Christ. The first two Napoleon and Hitler are universally accepted. There is considerable talk of the possibility of the third one alive and ruling at this time. Given that the time of the third world war is nearing (or as per some, should have started in 1999), it becomes all the more essential that we try and track the anti-Christ down.

Though nobody has singled out any particular person as the anti-Christ, chances are that we would come to know of him sooner, rather than later.

I sincerely hope that we don't have any wars and that peace reigns in the world.

US votes for President today

2008-11-04T08:44:00.000-08:00

US votes to elect a new President today. Early indications are that Obama is set to create history by becoming the first black US President. Though nothing can be said for sure till the official results are declared, the contest is certainly leaning towards Obama.

The primary job of the new President elect would be to ensure that the current financial crisis, which has been created due to the US and has spilled over the entire world, is brought under control.

I wish the new President (either of them) to succeed in the above-said mission

Festival of Diwali in India

2008-10-28T08:36:00.000-07:00

India celebrates the festival of lights- Diwali today.

As I sit and reflect on the events that have taken place in India over the past few months, I'm stuck with a basic question- is Diwali 2008 special? The more I try to find an answer, I can't help but think that the answer is sadly no.

Come to think of it, blasts have created havoc all across the country. To make matters worse of the common man, inflation and the exorbitant prices of essential commodities has literally broken the back of the common man. He is left in the dark to fend for himself.

In this scenario, I can't help but feel that all of us should pray to have a much better Diwali the next time round, wherein peace reigns in the country and the common man is not left to fend for himself.

AMEN!!

Rupee Breaches the 50:1 barrier Vs USD

2008-10-24T08:13:00.000-07:00

In early trade today, the India rupee booked one of it’s biggest losses against the US dollar. The loss was not on account of the percentage depreciation itself; it was due to the fact that for the first time in history, the conversion rate fell to below Rs.50 against a single USD.

This might signal good news for exporters. I’m sure the IT and ITES companies would be watching happily the steady slide of the Indian Rupee against the USD. In the current times, when projects and clients are hard to come by for IT & ITES organizations, the fall in rupee signals a windfall, as they can realize a much higher INR value for the same dollar amount, as compared to a few months back.

However, India still remains a net importer (majorly due to the crude it has to import to keep it’s energy demands going), which means that the fall in Rupee puts additional burden on the exchequer. I hope the FIIs stay invested in India, which would keep the pressure of dollar demands to reasonable levels, thereby ensuring that the exchange rate is maintained at manageable levels.

I sincerely believe that the conversion factor should stablise around the 44:1 ratio (1 USD = 44 INR), once the FIIs have withdrawn whatever FDI is left within the country.

Oil Prices drop to $71 per barrel

2008-10-16T21:41:00.000-07:00

Crude oil prices have been headed south since touching a peak of $147 per barrel this July. The immediate reaction to this is that this is great news for consumers, as lower crude costs mean lesser costs to pay.

However, on a closer look, it paints a grim picture. The prices of crude are falling not due to over production, but due to the fact that there is lesser demand for fuel, given the recessionary conditions we are currently going through. The current recession in the world economy is being compared with the great recession we had between 1929 and 1933.

My take on the falling prices would be different for different sections of society. For the ones still having a regular source of income, this is great news, as this means that they can finalize their travel plans and at much lesser costs. However, for the ones who do not have a regular source of income, it means ever more bad news. The recession is here to stay, and they would be well advised to cut their expenses and stay away from a travel jaunt.

Government Injects Funds in Banks across the World- After Effects

2008-10-16T21:40:00.000-07:00

Across the world, Governments have been injecting huge sums of money to bail out distressed banks. This trend started with the US, with the European nations and then the Asian nations following suit.

My take on this is the once any Government has interests in banks, then general tendency is to exercise caution while lending money. This is definitely a good sign as far as the current situation is concerned, as this would lead to a prudent and realizable assets being reflected in the bank’s balance sheets. Also, it may impact outsourcing in more than one way(s). Any Government would like to hold on to the jobs created within their countries, which would ensure that the people of those countries are employed. A capitalistic approach (which private organization employ) would be to outsource the same jobs to low cost countries, which would definitely not be the case with the Government taking charge.

As a result, I feel that outsourcing to India, Philippines and other low cost countries could be affected in a big way, especially with the Government taking up stakes in the banking sector.

Stock Markets and Small Investors

2008-10-06T06:08:00.000-07:00

Growmore Growmore once more!
Growmore Growmore no more!

This is one of the famous quotes that I still remember from the famous Harshad Mehta scam that rocked the Indian stock markets in 1992.

I can’t help but draw a parallel between the Harshad Mehta scam and the current turmoil that the stock markets are facing. I know, this might seem weird; I’m not suggesting that the current bloodbath at the stock markets is due to a scam, I’m just drawing a parallel between the huge loss of net worth that the falling stock market has led to.

Unfortunately, the worst sufferers in such a fluid scenario are the small investors, who invest a few sums here and there, in the anticipation of getting a fair return. I know of many friends, who started investing in mutual funds, thinking that they are a much safer bet, rather than investing directly in the market. However, they have been one of the worst sufferers of late, as a falling market is directly proportional to the NAV (net asset value) of the fund.

Having suffered heavy losses myself in the Harshad Meha scam myself, I’ve not been an active player in the stock markets ever since 1996, when I was able to recover the losses. I decided to leave the market for good, as soon as I was able to recover my capital invested. Ever since, I’ve been thinking of strategies to outbid the market, and having suffered at the hands of the bears in the stock markets myself, I’ve believed in caution to be a better part of valour.

As I look back and think what I could have done better, I feel that the though investment in mutual funds and index funds is good, I would think that parking funds in various streams would be better. After all, this goes with the age-old saying ‘don’t put all your eggs in one basket’. I would think that investment in stocks should take the lion’s share of the total investment, with a clear cut strategy to cut losses. I feel that one should exit from a particular share, as soon as one has earned/lost 20%. This is a sure shot way of controlling one’s greed (when the stocks are rising), and cutting losses (when the stocks are falling). In a medium to long term, I feel that this could give a 9%-10% return from the market.

I’ve known a lot of small investors like myself, who believe in clinging on to their investments, thinking that the scrip would give them more profits (when the stocks are rising), or that their scrip would be able to recover lost ground (when the stocks are falling). It’s this mistake that one should try and avoid, as this is the root cause for small investors to loose at the stock markets. A magic mantra of success could be “don’t fall in love with your shares”. Another common phenomenon is counting notional profits; being a chartered accountant, I believe in the principles of accounting, which say one should never count notional profits. If a scrip is yielding notional profits to the small investor, they tend to go into a comfort zone, and start expecting more from the same scrip. My advice to small investors would be to refrain from doing that, and sell the stock, as soon as the threshold limit of 20% gain has been achieved.

Above all, keep your date with the financial sector and be abreast of the latest in Finance- both globally as well as nationally. Look out for sectors that are doing good and expected to perform well in the future and refrain from investing in a sector/industry which is being phased out

Be alert and see your portfolio give your fair returns. Never expect overnight gains from the stock market- it may happen once in a lifetime, but chances are that you might (as a small investor) come to know of the windfall opportunity, once the wind has tided and it’s time to backtrack the wind’s path (implying when it’s time for the markets to fall)!!

Presidential Elections in US- Effect on Outsourcing

2008-10-03T11:04:00.000-07:00

Barack Obama said in his speech that he would curb outsourcing IT projects to INDIA as it may weakens the US economy. My take on this is that it is another political stunt by him before the upcoming elections- I remember a similar debate was started before the 2004 presidential elections in the US, but outsourcing has been on the rise ever since.

Corporates in US cannot survive if they hire all local residents for all their positions- the cost would go through the roof, rendering it impossible for organizations to continue in business. Due to this, outsourcing has become a necessary evil for the US companies. I say necessary, as this is the only way to keep costs under control, and an evil, as they know that outsourcing means loss of job opportunities for US residents.