WORLD IS BITTEN BY THE GOLD BUG

Gold continued its upward march in a time of global financial tumult, closing above $1,500 an ounce Thursday for the first time as investors seek safe haven in the metal.
In a remarkable performance for any sort of asset, gold has notched a record high every day this week—on days when investors were alternately gloomy and optimistic. On Monday, as stocks swooned after Standard & Poor's warned about the credit rating of the U.S., gold reached a new high. It kept rising on Tuesday and again on Wednesday, as stocks soared on impressive corporate earnings.
On Thursday, gold rose $4.90 an ounce to $1,503.20, another nominal record high and its first settlement above $1,500. Gold is up for five straight weeks, and has gained 5.8% so far this year. Gold will not trade in the U.S. on Good Friday.

 

The reason for gold's ability to do well in any market lies in its recent role as a haven from concerns about the dollar, inflation and shocks in Europe, the Middle East and Japan.

HIGHLIGHTS OF UNION BUDGET 2011-2012

POSITIVE HIGHLIGHTS
• Excise duty to be reduced from 10% to 5% on parts of specified machinery
• Surcharge for companies cut to 5 per cent, from 7.5 per cent
• Citizens over 80 years to have exemption limit of Rs 5 lakh
• Special incentives for hybrid vehicle makers if manufacturing done in India to be positive for auto companies
• Crude palm used in sports exempted from customs duty to be positive for palm oil companies
• Duty reduced on hybrid & electric cars along with batteries imported for such vehicles
• Senior Citizen Age Limit reduced from 65 years to 60 years for Income Tax purposes
• Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent
• No import duty on ship parts positive for SCI
• Tax exemption limit for senior citizens raised to Rs 2.5 lakh from 2.4 lakh
• Basic food and fuel and precious stones, gold and silver jewellery to be exempted from central excise duty
• Nominal 1 per cent central excise duty on 130 items entering the tax net LED to cost less

NEGATIVE HIGHLIGHTS

• EXPENSIVE: International Air Travel
• EXPENSIVE: Domestic Air Travel
• Tax on life insurance service providers could be negative for insurance companies
• Travel, Healthcare to become expensive due to increased service tax
• Lack of FDI in retail was a disappointment
• Air travel to cost more
• Branded clothes may cost more
• Rise in MAT to hurt RIL, GVK Power, telcos

OTHERS HIGHLIGHTS

Tax exemption limit raised to Rs 1.8 lakh, from Rs 1.60 lakh for individual tax papers.

• For senior citizens, the qualifying age reduced to 60 years and exemption limit raised to Rs 2.50 lakh.
• Citizens over 80 years to have exemption limit of Rs 5 lakh.
• Surcharge for companies cut to 5 per cent, from 7.5 per cent.
• A new revised income tax return form 'Sugam' to be introduced for small tax papers.
• Service tax retained at 10 per cent; duty exemptions to be withdrawn on various items.
• Net loss from direct tax proposals estimated at Rs 11,500 crore for the year.
• Excise and customs duty proposals to result in the net gain of Rs 7,300 crore.
• Standard rate of central excise (rpt) excise duty maintained at 10 per cent; No change in CENVAT rates.
• Nominal one per cent central excise duty on 130 items entering the tax net. Basic food and fuel and precious stones, gold and silver jewellery will be exempted.
• Peak rate of customs duty maintained at 10 per cent in view of the global economic situation.
• Basic customs duty on agricultural machinery reduced to 4.5 per cent from 5 per cent.
• Service tax widened to cover hotel accommodation above Rs 1,000 per day, A/C restaurants serving liquor, some category of hospitals, diagnostic tests.
• Service tax on air travel increased by Rs 50 for domestic travel and Rs 250 for international travel in economy class. On higher classes, it will be ten per cent flat.

RAIL BUDGET HIGHLIGHTS

1. No hike in passenger fare and freight rates.
2. Highest ever Plan outlay of Rs. 57, 630 crore proposed for Railways.
3. Rs. 9,583 crore provided for new lines.
4. 1300 km new lines, 867 km doubling of lines and 1017 km gauge conversion targeted in 2011-12.
5. 56 new Express Trains, 3 new Shatabdis and 9 Duronto trains to be introduced.
6. AC Double Decker services on Jaipur-Delhi and Ahmedabad-Mumbai routes.
7. New Super AC Class to be introduced.
8. A new portal for e-ticketing to be launched shortly. Booking charges will be cheaper with a charge of only Rs. 10 for AC classes and Rs.5 for others.
9. Pan-India multi-purpose smart card "Go India" to be introduced.
10. 236 more stations to be upgraded as Adarsh Stations.
11. 47 additional suburban services in Mumbai and 50 new suburban services proposed for Kolkata.
12. Two new passenger terminals in Kerala and one each in Uttar Pradesh and West Bengal proposed.
13. Feasibility study to raise speed of passenger trains to 160-200 kmph to be undertaken.
14. A special package of two new trains and two projects for the States managing trouble free run of trains through out the year.
15. Anti Collision Devise (ACD) sanctioned to cover 8 zonal railways.
16. GPS Based 'Fog Safe' Device to be deployed.
17. All unmanned level crossing upto 3000 to be eliminated.
18. All India Security Help line on a single number set up.
19. All state capitals in the North-East except Sikkim to be connected by Rail in next seven years.
20. A Bridge Factory in J & K and a state-of-art Institute for Tunnel and Bridge Engineering is proposed at Jammu.
21. A Diesel Locomotive Centre will be set-up in Manipur.
22. A Centre of Excellence in Software at Darjeeling proposed under the aegis of CRIS.
23. Rail Industrial Parks at Jellingham and New Bongaigaon proposed.
24. Additional mechanized laundry units to be set up at Nagpur, Chandhigarh and Bhopal.
25. 700 MW gas-based power plant to be set up at Thakurli in Maharashtra.
26. 18,000 Wagons to be procured during 2011-12.
27. A scheme for socially desirable projects, 'Pradhan Mantri Rail Vikas Yojana' with Non-lapsable fund proposed.
28. 10,000 shelter units proposed for track side dwellers in Mumbai, Sealdah, Siliguri, Tiruchirapalli on pilot basis.
29. Concession to physically handicapped persons to be extended on Rajdhani and Shatabdi trains.
30. Concession of 50% to press correspondents with family increased to twice a year.
31. Senior Citizens concession to be hiked from 30 % to 40 %.
32. Medical facilities extended to dependent parents of the Railway employees.
33. Scholarship for Girl child of Group-D railway employees increased to Rs.1200 per month.
34. 20 additional hostels for children of railway employees to be set up.
35. Recruitment for 1.75 lakh vacancies of Group 'C' and 'D' including to fill up backlog of SC/ST initiated, 16,000 ex-servicemen to be inducted by March 2011.
36. A separate sports cadre to be created.
37. 2011-12 declared 'Year of Green Energy' for Railways.
38. Freight loading of 993 MT and passenger growth of 6.4 % estimated for 2011-12.
39. Gross Traffic Receipts at Rs.1,06,239 crore, exceeding one lakh crore mark for the first time estimated.
40. Ordinary Working Expenses assessed at Rs. 73,650 crore.

INDIAN WINE INDUSTRY ANALYSIS

India has emerged as a country with immense potential for wine industry at the global front. Despite the country’s vast population of around 1.2 Billion, the consumption of wine remains extremely low. The low per capita consumption level indicates a huge potential for growth in the Indian wine market in the coming years. Changing life style patterns and drinking habits will further boost the growth of the Indian wine industry.

According to our latest research report “Indian Wine Industry Analysis”, wine consumption volume in India is expected to grow at a CAGR of around 30% during 2011-2013. The major factors responsible for growth in the Indian wine market are favorable government policies, increasing disposable income, and the availability of foreign brands.

Our research indicates that imported wines dominate the premium wine segment in the country as they are heavily priced. However, the total consumption is still dominated by the domestically produced cheap wine. To cater to the growing demand for foreign wines, local players are including affordable imported wines in their portfolios to attract new consumers.

Further, our report provides insight into India’s wine consumption in terms of domestically produced and imported wines, price structure, sales by location, type of wine consumed, a possible regional segmentation, major wine producing areas, distribution channels & leading wineries in India, consumer taste and preferences, wine imports & exports.

Besides, the report analyzes factors critical to the success of the wine industry in India. It has also identified key players in the market and included their business description along with their recent activities. Additionally, the report sheds light on the emerging industry trends and discusses the market structure, current, and past market performance of the Indian wine industry. Forecasts for potential wine consumption have also been presented to provide better understanding of the Indian wine industry.

MARKETS IS IN GREEN ZONE

India is shining. The economy is shining and growth rates are shining too. Though FDI has gone down over the last year and there are many problems from inflation to black money and corruption, knowing our country, it will be fool hardy to consider it outside the race of the world beaters. As only we Indians know, we always perform only when everyone else expects us to fail

 After a fall for three successive weeks, the stock markets are likely to witness a relief rally this week on the back of normalcy in Egypt and a correcting trend in global crude oil prices. The Bombay Stock Exchange bellwether has plummeted by 6.72 per cent or 1,278.92 points in the last three weeks on the macro concerns, including inflation and an 18-day long crisis in Egypt. 

 Today the starting of this week is very good because the week before the day was fantastic. Good news come from Egypt .Foreign markets are in green zone whose great impact on the Indian market. American , European ,and other Asian market shows green signal.

INFLATION CYCLE IN INDIA

 Food inflation soared to 17.05 per cent for the week ended January 22, rising for the
second straight week, on the back of costlier vegetables, fruits and milk. Food inflation rose by 1.48 percentage points from 15.57 per cent in the previous week. The food inflation last year had stood at 20.56 per cent. On an annual basis, onion prices rose by 130.41 per cent in the third week of January, although they have moderated considerably in the recent days. Vegetables as a whole have became dearer by 77.05 per cent on an annual basis as potato prices rose by 6.22 per cent. Fruits and milk became costlier by 15.47 per cent and 11.41 per cent on a year on year basis respectively, data released by the government showed. In the non-food items, fuel inflation rose by 0.66 per cent during the week after the oil marketing companies raised petrol prices by about Rs 2.50 a litre.
"Fuel and Power" category showed an increase of 11.61 per cent year-on-year. The rise in latest food inflation figure is likely to put further pressure on the government grappling with expensive food commodities and a slowing industrial growth that dipped to the 18-month low of 2.7 per cent for November. The overall inflation for December rose to 8.43 per cent, from 7.48 per cent in the previous month.
 

WHY GOLD PRICE IS RISING???

Gold and its prices are on everyone's tongue.
It has the strength to face not only inflation but also a great opportunity to have input.
People all over the world are putting the money but it also has been engaged largely speculative.

Money news a report is $102 billion of speculative on gold  therefore  speculator(sstoriye) are not falling the gold price.Although gold is not something that his prices or further to reach these heights.
but weakness of  dollar and inflation increased the price of gold and many big investors also invested on it and  then the central banks in many countries including India, have invested great way gold prices because of the increased. But now gold has been feeling so much money that it seems very unlikely to go down. speculators  would not let down its prices too.
Current situation is not like the '80s when the Hunt brothers of betting own gold - silver prices had reached historic heights.
But different - different countries speculators play there own game. Experts believe that gold prices currently very low in this condition will not.
U.S. newspaper Wall Street Journal so far as to say that gold prices can go up to 30 percent in 2011.

INDIAN ECONOMY

INDIAN ECONOMY 
India has emerged as the 2nd fast growing economy after china. The Indian government can take a good degree of pride in the way it handled the economy during the resent global crises. No doubt that India is moving in the right direction and When you look at the last 20 years, India has opened its economy and come further and faster than anyone ever could have predicted .but

 INTEREST RATE :-       5.50%

GROWTH RATE:-           8.90%

INFLATION RATE:-        8.33%

JOBLESS RATE:-            8.00%

CURRENT ACCOUNT:-   - 14

EXCHANGE RATE:-         45.7600

 INDIAN ECONOMIC GROWTH MAY SLOW DOWN

REASONS:-

• In UPA ruling ,the emergence of top scandal and frauds is the reason
• High inflation and rising interest rate
• Current account deficit has surged to 4.1% of GDP which could play havoc for India in sustaining in its dream run amongst other emerging market economics
• RBI revised repo(6.5%) and reverse repo (5.5%)by 25bps and bankers believe another hike could well be in the offering soon.