Demonetisation effect to spill over to next quarter: RBI Deputy Governor Viral Acharya

With the latest GDP data failing to register any negative blip at all to the surprise of most analysts, expectations were that the impact of the note ban order by Prime Minister Narendra Modi announced on November 8 last, that caused shortage of currency notes in the financial system, would be seen in the next quarter has been affirmed by the Reserve Bank of India (RBI). Speaking on the subject today, RBI Deputy Governor Viral Acharya said, “Effects of demonetisation to spill over to the next quarter in some segments.”

 

However, Acharya added that recovery was going on apace and the system per se would get back to its original state soon. The Deputy Governor added, “Remonetisation pace quick, should be completed in 2-3 months.”

While the fight against black money is going on in the wake of the demonetisation drive, Acharya highlighted a key gain for the Indian economy that has come through the note ban order by the government. One of the key goals of the ban on Rs 500 and Rs 1000 currency notes was to move the Indian economy to a less-cash status and that seems to have happened even though the sudden surge towards digital payments by the people has reduced as the cash component in the system increased as RBI pumped in notes to get back to the pre-November 8 period and thereby end the cash crunch situation that led people to stand in long, snaking lines at bank ATMs. He said, “Level of cash in circulation to be less in post-demonetisation era.”

December GDP data revealed on February shows 7% yoy growth versus 7.4% in September, and with GVA at 6.6% versus September’s 6.7%. However, this shocked the economists as statistics that had been coming through other sources had painted a darker scenario. Data for sales of cars, two-wheelers and commercial vehicles had contracted both in November and December and the same was the case with sales of consumer staples, cement and steel. What is more, CSO kept GDP growth forecast for the current financial year at 7.1%.

Binary Options Strategies for Newcomers

Binary options have caught the fascination of many traders who look to earn money faster than the conventional investment ways. Though they are considered somewhat risky, there is no doubt that these options are much more lucrative than any other form of investment or trading alternatives. Since not much money is needed to gain from these options, many people are now considering them as a convenient way to make money.

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About Binary Options

They are aspecial type of variants of options. Options, as we know are derivatives. The investor or trader gets to buy a contract, in which if the predictions of the trader isright then he or she gets the sum agreed as in the contract, or nothing if his/her prediction fails. In contrast, conventional options contract allow the investors or traders to opt out of the contract if the price of anunderlying asset is not moving in the direction as anticipated by them or fail to reach the amount that they anticipated, absorbing fewerlosses in the process. In binary options, there is no way the buyer can mitigate losses from within the contract. The option buyer has to look at other strategies to play in this market and earn profits. The word “call” is for investment or buying, and the word “put” is for selling. If you are a beginner and want to know more about “what are binary options,” then you should certainly read the helpful guides to gain the comprehensive knowledge about binary options.

Binary Options Strategies

Over the years several strategies have been identified for earning profits from binary options trades. Some binary options traders are comfortable with sticking with one strategy whereas others prefer changing plans depending upon asset on which the binary option is based. Yet others combine these strategies.

Here are a few of the commonly used binary options strategies that traders use and which any newcomer desirous of trading in binary options should learn.

  1. Trend Strategy

As the name suggests, it is based on thetrend. If the market is moving upwards, it indicates the trend upwards, and betting on the asset’s price moving upwards is more likely to fetch profits. The trend lines are straight lines tracing the candle graph of the asset’s price movement on theexchange. If the slope of this line is minimal, trading in binary options needs to be avoided. The rule is to buy a “call” binary option if the trend is upwards and opt for “put” binary option if the trend is downwards.

  1. Pinocchio Strategy

This is a more complex strategy and needs more study. Here too charts of asset price are examined. The movement is referred to as pin bar or wick. Usually, when the pin bar moves downwards sharply, the price of anunderlying asset is likely to move up. Vice versa, if it is moving down gradually with short wicks, then it is liable to continue to be on adowntrend. Similarly, when the asset’s price is moving upwards, shorter spurts in prices are indicative of anupward trend, whereas sudden sharp spurt upwards indicates thelikelihood of the asset’s price slipping. This strategy is so named because the longer nose of Pinocchio and longer candle wick are anindication of alie regarding direction. Though it is a good strategy, it may not always be perfect. It requires stop loss that is significant and speed in taking decisions. Effectively when the wick is down “call” or “buy” direction is to be selected, and when the wick is up, “put” or “sell” binary option is to be selected. From a newbie’s perspective,much practice is needed in following this strategy, though once mastered, it can be quite fetching.

  1. Straddle Strategy

Traders use this almost in every market. But usually, this approach is applied when the market is anticipating some news related to the underlying asset of the binary option. What the traders do is, use “put” when the price is high, and use “call” when the asset price is low. This, of course, is the standard policy. But traders also use the reverse of it also immediately and alternately following the sale, anticipating sharp reversals of the trend. Any of the two trades could be bringing you the good results.

  1. Risk Reversal

This is similar to straddle strategy. Calls and puts are on the same asset. It is basically a defensive strategy meant for reducing risks if any. Profits are also lower. The difference between the two is that straddle is a continuous process, whereas risk reversal is done simultaneously.

  1. Hedging

Unlike risk reversal method, in hedging, two different assets are used, and calls or buys apply to one asset and puts, or sellsare applied to the other asset.

  1. Research and Analysis of the Fundamentals of the Asset

This is acrucial aspect of any trade, be it in thestock market, commodity market, or forex market. This is the most reliable part of the information and comprises almost 20% of the asset’s price movement probability.

Conclusion

There is no denying that binary options are a risky proposition. But risks can be reduced by setting aside the capital to be used for this. Effectively, that money may be deemed lost. Not more than 5% should be employed for each binary options contract. At the most, this may be extended to 10% of that allocated capital. Not more than 25% of capital should be invested in trades at any point in time.

US client spending posts biggest advantage in extra than six years

U.S. consumer spending recorded its biggest growth in extra than six years in April as households stepped up purchases of automobiles, suggesting an acceleration in economic boom that would persuade the Federal Reserve to raise interest rates quickly.

Even though different information on Tuesday showed an ebb in purchaser self belief in may also, spending is likely to remain supported with the aid of sturdy gains in house fees, in addition to a strengthening exertions market, which is steadily pushing up wages.

“This takes the Fed a step and a half of in the direction of the following boom in hobby costs,” stated John Ryding, leader economist at RDQ Economics in big apple.

Fed Chair Janet Yellen said on Friday an hobby price hike might probable be appropriate within the “coming months,” if the economic system persisted to pick up and the hard work marketplace brought jobs. Her perspectives were just like the ones expressed in mins from the Fed’s April 26-27 coverage meeting published recently.

The trade department stated consumer spending, which debts for more than -thirds of U.S. financial interest, surged 1.zero percent last month as families sold quite a number goods and offerings.

remaining month’s increase turned into the biggest for the reason that August 2009 and beat economists’ expectations for a 0.7 percentage upward push.

sturdy consumption lifted inflation closing month. The private consumption fees (PCE) fee index, aside from the risky food and power additives, rose zero.2 percentage after edging up 0.1 percentage in March. That left the growth within the year-on-year center PCE rate at 1.6 percent.

The center PCE is the Fed’s desired inflation measure and is running beneath its 2 percentage goal. Economists count on inflation to retain creeping higher this 12 months, bringing up the dollar’s fading rally and a sluggish boom in oil expenses and wages.

monetary markets are pricing in a more or less 61 percent chance of an interest price boom at the July 26-27 Fed policy assembly, in keeping with CME FedWatch. The dollar become trading better against a basket of currencies, whilst U.S. stocks fell. costs for U.S. government debt were little modified.

Brightening outlook

while adjusted for inflation, purchaser spending shot up zero.6 percentage, the most important advantage when you consider that February 2014, after being flat in March.

The robust patron spending document joined records on items exports, business manufacturing, housing begins and domestic sales in suggesting the economic system became regaining momentum after growing at a lackluster zero.eight percent annualized rate within the first area.

The Atlanta Fed is currently forecasting gross home product rising at a 2.9 percentage rate inside the second sector.

The brightening economic outlook changed into dimmed particularly via a separate record from the convention Board displaying its consumer confidence index slipped to ninety two.6 this month from a analyzing of 94.7 April.

households additionally had a much less favorable view of the exertions marketplace. the percentage of respondents announcing jobs were “plentiful” become little unchanged at 24.three percentage, whilst those reporting that jobs are “difficult to get” improved to 24.4 percent from 22.eight percentage in April.

nevertheless, households persevered to count on their earning to boom.

In a 3rd file, the Institute for deliver management-Chicago said its enterprise index fell 1.1 factors to a reading of forty nine.3 in may additionally, indicating a contraction in manufacturing interest within the Midwest. The decline mirrors other local surveys and suggests national factory hobby probable slumped in might also after two directly months of boom.

despite the retreat in client self assurance and weak spot in production, rising incomes and higher residence price are possibly to prop up intake. A fourth document showed the S&P/Case Shiller composite domestic rate index of 20 metropolitan regions rose 5.four percentage in March from a yr ago.

“purchaser spending will retain to steer monetary growth in 2016, as extra jobs, rising wages and residence fees deliver families extra money to spend,” stated Gus Faucher, deputy chief economist at p.c economic in Pittsburgh.

last month, client spending changed into buoyed through a 2.3 percentage jump in purchases of lengthy-lasting manufactured items, with cars accounting for maximum of the growth. Purchases of nondurable items surged 1.4 percent and spending on offerings extended zero.6 percent.

personal profits multiplied zero.4 percentage closing month after rising with the aid of the equal margin in March. Wages and salaries rose 0.five percent after advancing 0.4 percent in March.

With spending outpacing profits, savings fell to $751.1 billion closing month from $809.four billion in March.

Benefits Of Using A Salesforce Tutorial

Salesforce can be a great CRM system to introduce into your company. Not only is it going to make your sales force more effective but it is also going to increase their efficiency. In this article, we will be going over some of the many benefits of using a Salesforce tutorial.

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Salesforce Tutorial Benefits:

1. Employees Will Want To Use It.

Implementing any type of CRM system will not work unless you make your employees actually want to use it. A lot of employees will bypass using it if they are not properly taught the mechanics of it and the meaning behind it. A lot of people will not understand how it will make their lives easier and increase the amount of efficiency that they will be able to achieve on the job. By actually showing them a tutorial of it being used, you are going to be able to effectively show them exactly what it can do for their own productivity and this is going to make them much more likely to use it in their daily lives. By making your employees want to use it, you are going to make the implementation of it much better.

2. Employees Will Understand How To Use It.

Implementing a CRM system into your business is not going to do your business any good if the employees do not know how to even use it. Therefore, you are going to want to make sure that you train them on the different ways in which you can use the software in order to ensure that they are able to use it effectively. This means that you are going to want to try to create a tutorial that will show them how they are going to be able to use it in their daily work life to make their lives much easier and more organized. Salesforce can be a powerful tool and by using a Salesforce tutorial and showing your employees exactly how to work it first hand, it is going to make them much better at using it which will increase efficiency tenfold.

3. Optimize The Software For The Workplace.

The only way that you are going to be able to effectively optimize the use of the software for the workplace is going to be by showing your workforce how to use it and the best ways to use it. By showing a tutorial, you will be able to offer tips and tricks to make things easier and more organized. This is going to help ensure that you get the most out of the software for your workplace which is going to end up increasing the amount of efficiency and effectiveness that it has on your business.

As you can see, there are plenty of benefits of implementing a Salesforce tutorial in your workplace for your employees. It is going to make the implementation and adoption of the software much easier on them and they are going to learn how to effectively use it for the best results.

Smoking: ITC buys 38 flats in Mumbai

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Kolkata-headquartered ITC has snapped up 38 apartments in Crescent Bay, located in Parel, central Mumbai, for close to Rs 140 crore. The purchase comes as a bit of a surprise given most companies prefer to lease apartments rather than buy them.

While the going rate for flats in the area is anywhere between R25,000 and R27,000 per sq ft, the cigarette major is understood to have got itself a good deal, paying around R23,000 a sq ft. The residential complex, promoted by Larsen & Toubro, houses flats with both two and three bedrooms covering between 1,320 sq ft and 2,100 sq ft, priced at R3-5 crore.

Confirming the purchase, an ITC spokesperson said in an email that the apartments were for the exclusive use of ITC executives. “ITC has built and purchased high-quality residential accommodation for its managers across the country and there is need to enhance the number of apartments that the company owns in Mumbai. Towards this end, ITC has entered into an agreement to purchase 38 residential apartments in Crescent Bay,” the spokesperson said. The company did not comment on the value of the deal.

Mudassir Zaidi, national director (residential services), Knight Frank, pointed out that such purchases are rare in the current environment but added these are good investment opportunities.

“Buying apartments in a single complex makes sense since executives can be housed in one place,” Zaidi said.

At one time, most top companies, especially multinational corporations, bought apartments for the top management. However, many of these were in south Mumbai and have been sold as companies shifted operations to the suburbs. Companies have even sold their office buildings and factories in the area. Glaxo, for instance sold prime property in Worli, while Standard Chartered Bank and HSBC disposed of property they owned jointly; the property was a five-storey residential building, Bishopsgate, at Breach Candy and was sold to Peninsula Land for Rs 272 crore. Hindustan Unilever sold its headquarters in Churchgate and over the the last several years has put many residential apartments on the block in the elite neighbourhoods of Malabar Hill, Nepeansea Road and Carmichael Road in south Mumbai. In 2012, the company sold one of its commercial properties, Gulita in Worli, to the Ajay Piramal-promoted Piramal Realty for Rs 452.5 crore. Citibank too is understood to have sold a dozen apartments across locations in the last few years.

Rajasthan utilities seek debt recast

RAJASHTHAN

Distribution companies of the Rajasthan State Electricity Board (RSEB), which together have a total debt of Rs 55,000-60,000 crore, are looking to restructure a part of the borrowings while refinancing the rest, Sanjay Malhotra, the state’s principal secretary for energy confirmed on Tuesday.

FE had reported on June 4 that RSEB was looking for a second round of restructuring, having already recast its short-term liabilities under the financial restructuring programme (FRP) in 2013. Malhotra clarified to FE that the refinancing and restructuring were parallel exercises.

“We are looking to swap some part of the debt by either issuing bonds or even borrowing overseas and for this we will be appointing investment bankers. At the same time we have approached the banks since we would like a longer moratorium period for five years rather than three years,” Malhotra said. The principal secretary added that RSEB was also looking for operational funding as also a lower rate of interest from lenders.

There are three consortia comprising 26 banks that have lent to discoms in Rajasthan: Central Bank is the lead bank for the Jaipur discom while Bank of Baroda is the lead bank for the Ajmer discom. In separate discussions with banks, RSEB is understood to be negotiating for a reduction in the rate of interest.

RSEB’s accumulated losses are estimated at R81,000 crore though the revenue gap in FY15 was R13,000 crore, a shade lower than the R16,000 crore reported in FY14. The short-term working capital loans of discoms as on March 31 amounted to R52,402 crore. However, since the average interest rate on these is 12.75% with some loans contracted at a higher rate of 14% to 18%, the annual interest costs are in the region of R6,000 crore.

Between FY12 and FY15, the state hiked tariffs in the range of 17% to 22% annually. The tariff hike for FY16 is yet to be filed with the state regulator.

The state subsidy — for both discoms and generating companies — is Rs 18,000 crore, of which discoms account for Rs 15,650 crore. RSEB has improved their performance in the last few years. While in FY15, 67% of costs were recovered, this year 70% of costs are expected to be recovered.

The date for the FRP to be submitted by the investment bankers has been extended by about 10 days from the earlier deadline of June 23. “In order to optimise the costs and reduce the burden of short-term loans, there is a need to undertake restructuring/swapping of existing loans to reduce interest rates and also to identify available options for financing the future loan requirement of the Rajasthan power utilities at competitive rate of interest,” the document states.

In addition to the short-term working capital loans, the companies have also taken capex loans for upgrading and strengthening generation capacity and the transmission and distribution network to cater to the increased demand of power in the state which for the five companies adds up to Rs 42,368 crore, resulting in an annual interest burden of around Rs 4,500 crore for all the utilities.

Rajasthan had participated in the Centre’s FRP initiated in September 2012, restructuring Rs 38,000crore of short-term loans. The restructuring will be discussed by a committee chaired by the Union power secretary at a meeting on July 3. RSEB was unbundled into one generation company, one transmission company and three distribution companies in July 2000.

Rajasthan is hoping to become a power surplus state with 4,000 MW of capacity to be commissioned soon and is not looking to purchase power, Malhotra said. “As of now we are comfortable and there is no need for any PPAs (power purchase agreements),” he said

All coal blocks would become operational soon: Piyush Goyal

Piyush Goyal coal blocks

Union Minister of State for Power and Coal (independent charge) Piyush Goyal today said here that all the coal blocks in the country will become operational in the next couple of months.

“Soon after the (fresh) auction was over, I called a meeting of all the people who had won coal blocks… We discussed in detail what operational difficulties they have,” he said, addressing a press conference here.

He had been asked why several coal blocks in the state, including some allotted in the latest auction, were idle.

“We immediately set up a coal monitoring portal, in which all the allotees were asked to register and flag difficulties faced by them. Centre, through the coal ministry, is monitoring all these blocks and their difficulties,” he added.

Some mines in the state had started operating, he said.

“During UPA I, Prime Minister’s Office had decided to allocate blocks through auction, but till 2014 no auction process was carried out. We took up auctioning procedure after SC cancelled over 200 allotted coal blocks. Our procedure is completely transparent,” Goyal said.

“Coal secretary would personally visit the states including Jharkhand, Orissa and Chhattisgarh to review the position of each mine. In next couple of months all the mines will be operational,” he said.

About Congress vice president Rahul Gandhi’s recent visit to villages affected by coal mining in north Chhattisgarh, Goyal said, “I expected that when his party was in rule for last ten years, he would have visited people and realised their pain… His government (UPA) was busy allocating coal mines free of charge to their party MPs and well-wishers.”

While the coal blocks were allotted free of cost during the UPA rule, Chhattisgarh alone was now poised to get a royalty of Rs 1,10,990 crore with fresh allocation of blocks, Goyal claimed.

Earlier, Piyush Goyal inaugurated the newly-built International Institute of Information Technology at Naya Raipur and later chaired a meeting at Mantralaya.

About the meeting, he said the process of setting up power grids would be expedited for smooth transmission of power across the country from here.

“State government has raised the issue regarding setting up power grids during the meeting… Power Grid Corporation of India will be asked to quickly take up the project and expedite the process,” he said.

In the next two and a half years, adequate transmission capacity will be developed in the state so that electricity produced here could be transmitted to other states and people of Chhattisgarh could benefit from this revenue, he said.

LED lights will be installed in every house and street in the state in the next three years, Goyal announced.

In Parliament, fish fry at Rs 25, mutton Rs 20 for MPs who earn Rs 1.4 lakh

parliament canteen rates

Crisp fish fry with chips at Rs 25, mouth watering mutton curry for Rs 20, mutton cutlet for Rs 18, a crunchy masala dosa for Rs 6 and boiled vegetables for as little as Rs 5. The rates can make one salivate as much as the dishes.

At a time when soaring prices of meat, fish and vegetables may make these lip smacking dishes disappear from the common man’s plates, Parliamentarians earning on an average Rs 1.4 lakh with perks, are savouring these for a pittance, courtesy the subsidy provided by the government.

According to an item list received under the Right to Information (RTI) Act, while fish fry with chips is subsidised by 63 per cent, the figure for mutton curry is 67 per cent, cutlet 65 per cent, boiled vegetables 83 per cent and masala dosa 75 per cent.

The cost of procuring raw items for a dish of stewed vegetables comes to about Rs 41.25, while the MPs are getting it for Rs 4 at a subsidy of about 90 per cent.

For the non-veg meal, raw items are procured for Rs 99.05, while the prepared dish is served at Rs 33 to MPs with 66 per cent subsidy, the reply provided to RTI activist Subhash Agrawal shows.

The rates were last revised on December 20, 2010.

The RTI response shows the Parliament canteens serve 76 dishes ranging from simple boiled egg to various mutton and chicken preparations that are subsidised anywhere between 63 and 150 per cent.

The only item which is sold for a marginal profit is the humble ‘roti’ at Re one a piece for which the raw item costs 77 paisa.

The canteens, which are run by the Northern Railway, procure raw items from government-run agencies like Kendriya Bhandar, Mother Dairy etc.

The reply says the canteens received a subsidy of Rs 10.4 crore, 11.7 crore, 11.9 crore, 12.5 crore and 14 crore in 2009-10, 2010-11, 2012-13, 2013-14 respectively, totalling around Rs 60.7 crore.

Govt notifies new and simplified Income Tax Returns forms

Income tax returns forms

The Income Tax department has notified the new set of ITR forms, including a three-page simplified one, for taxpayers to file their returns for assessment year 2015-16.

With the Finance Ministry publishing the gazette order yesterday, taxpayers and other entities can now file their Income Tax Returns (ITR) till August 31, the new deadline set in this regard by the government after it dropped the earlier forms which had attracted criticism for seeking numerous additional details like that of filers’ foreign travel and about dormant bank accounts.

The most simplified form, ITR-2A, to be filled by those individuals and HUFs who do not have income from either business, profession or by way of capital gains and do not hold foreign assets, only asks for the passport number of the tax-filer, with the words “if available”.

Filers now will have to declare only about the “total number of savings and current bank accounts” held by them “at any time during the previous year (excluding dormant accounts).”

The form also has space to fill up the IFSC code of the bank and in an additional feature, tax filers have been given an option to indicate their bank accounts in which they would want their refund credited.

The I-T department, in the new ITRs, has also sought the Aadhaar number of filers and has also given options for providing two email ids to it.

“The inclusion of Aadhaar and emails are to ensure a regime of online ITR filing in the country,” a senior official said.

The department has also provided for an additional four-page schedule to this simplified form for those who wish to file anymore details, applicable in a case-to-case basis.

In the ITR-2, for individuals and HUFs having income from business or profession, the form remains simple but they will have to declare if they hold any foreign assets abroad or have income from “any source outside India.”

The new ITRs have replaced the 14-page form that were notified earlier this year, triggering a major controversy with individuals, industrialists and MPs saying tax filing would become cumbersome as those forms had sought details including foreign trips and bank accounts details.

Finance Minister Arun Jaitley had ordered putting these forms on hold following the controversy.

The last date for filing of the ITR has already been extended for this year to August 31.

Also, in the new ITRs, an expat who is not an Indian citizen and is in India on business, employment or student visa, would not mandatorily be required to report the foreign assets acquired by him during the previous years when he was non-resident and if no income was derived from such assets during the relevant previous year.

World Bank pledges US dollar 500 mn for earthquake hit Nepal

world bank, nepal earthquake

The World Bank said it will provide US dollar 500 million to Nepal to support the massive reconstruction efforts of the quake-ravaged nation, days ahead of an international donor conference here.

“We are working with the Government of Nepal and its international partners to help the country get the resources it needs to build back better,” World Bank president Jim Yong Kim said in a statement.

“We will do everything possible to help people who suffered from the earthquake, especially the poor, rebuild their homes and livelihoods,” the statement added.

Subject to the approval of the World Bank’s board of executive directors to be held on June 29, the financing will consist of US dollar 200 million for housing reconstruction in rural areas and another USD 100 million for strengthening the country’s banking system, which has suffered following the post-quake economic slowdown.

An additional US dollar 100 to US dollar 200 million will be redirected from existing World Bank projects in Nepal to reconstruction efforts, the statement said.

According to the government’s preliminary assessment, Nepal requires US dollar 6.7 billion for the post-quake reconstruction, rehabilitation and rebuilding projects.

The support by World Bank comes ahead of an international donor conference here on June 25 to support Nepal’s reconstruction efforts.

As many as 239 delegates from 53 countries including India and multilateral agencies have confirmed their participation in the conference.

Nepal was struck by two massive earthquake on April 25 and May 12 which killed nearly 9,000 people and left behind a trail of destruction.

At least 5,27,829 private houses and 2,673 government properties were fully damaged, while 2,77,841 private houses and 3,757 government buildings were partially damaged in the quake.