A new year means a new beginning for many. The calendar year followed by the world indicates 1 January as the start of a new year. However, in a diverse country like India people follow different traditions each year.
For most Hindus, the New Year begins in the summer. However, in Gujarati and Marwari traditions, it starts in Diwali.
India’s stock markets are dominated by brokers belonging to these two communities. Hence, every year, Diwali assumes a special place for those in the stock market.
Here are few things to know about Muhurat trading:
· Stock exchanges would open for trading at 6 pm on 3 November 2013 for Muhurat trading. The session lasts for an hour and a half. Muhurat means an auspicious moment to start something new. This is a tradition for over 100 years on the Bombay Stock Exchange and the mostly Gujarati and Marwari stock broking community. The session marks the end of the traditional financial year and the beginning of the new one.
· People look at stock markets from a point of view of wealth creation. Stockbrokers execute token trades on behalf of their clients or their own account to mark the occasion. Stock exchanges and broker offices are decorated to seek blessings of Lakshmi, the goddess of wealth.
· Chopda or Sharda Puja is performed. ‘Chopda’ is an account book. On the New Year day, you close your previous year accounts and start writing your financial statements in a new book. However, since most stock brokers are corporatized, accounts are no longer maintained physically. They are in electronic format. Also, for most companies in the business, the financial year starts on 1 April.
· Typically, the trading activity on Muhurat trading is thin. Over the years, statistics from the Bombay Stock Exchange data (available since 1992) shows that the Sensex has ended in positive territory 7 out of 10 times. The average gain or loss is not more than one per cent. Transactions mostly have a sentimental value than any impact on the portfolio.This work is produced by Simplus Information Services Pvt Ltd. Customer engagement through content. Like this article? Click here for more articles from the same provider.
Sunday, 3 November 2013
Diwali brings cheer to markets in Braj Mandal
Agra/Mathura/Vrindavan, Nov 3 (IANS) Sri Krishna's land Braj, comprising Agra, Mathura, Vrindavan, Hathras and Aligarh districts, is on a new high this Diwali with markets flooded with gift packets and Chinese lights Sunday. The sweet shops are virtually swamped with demands for the large variety of sweets lining the sale-counters.
"The markets and the busy lanes are choked with people and vehicles. It's one massive traffic jam all over Agra," said advocate Rajvir Singh, grumbling after he had to return without purchasing anything from Raja ki Mandi market in Agra.
Even when there is no space for movement or parking, people are buying vehicles.
"God knows from where the money is coming and they all keep wailing about price rise and financial crunch," Rajvir Singh told IANS. Market reports in Agra said that in just two days before Diwali, sales of all products had crossed Rs.400 crore.
In Mathura, the main market from Dwarkadheesh Temple to Holi Gate is dazzling with lights and a striking range of consumer products are being attractively displayed to lure consumers.
Vrindavan is buzzing with intense emotional buildup as Sri Krishna's devotees not only from India but hordes of foreigners have been making a beeline to various religious sites associated with Sri Krishna folklore.
The Braj Chaurasi Kos Yatra, covering a distance of almost 200 km on foot around Mathura, with a record number of pilgrims this year, is on. The religious fervour in Goverdhan, the holy hill town, 25 km from Mathura, is at its peak with preparations for religious meal-ceremonies Annakoot and Chhappan Bhog in full swing.
District authorities in Mathura are particularly anxious after reports of a massive influx of pilgrims expected for the ritualistic Yamuna Snan on Yam Dwitiya Parva, two days after Diwali. Brothers and sisters jointly take a holy dip in the river to be free of the shackles of Yamraj whose sister is Yamuna.
Meanwhile, expecting a huge Diwali rush, the state-run roadways corporation has made additional arrangements for transportation, deploying hundreds of buses to ferry pilgrims between Agra, Mathura and Vrindavan on Diwali.
The market for jewellery, clothes and other consumer durables has picked up momentum after a dull start last week. Sweet and gift shops are working overtime.
This year there has been a great demand for home-made chocolates. A large number of women entrepreneurs have entered this field. The Agra jail's petha retail counter is also doing brisk business.
"One good reason for the upbeat market this time is that the festival falls in the first week when pockets are flush with salaries and additional incomes," explains Bankey Lal Maheswari of Sri Nath Textiles in Johri Bazar close to Agra Fort.
The tourist inflow is steady. "But the same day return (to Delhi) due to the Yamuna Expressway, has hit smaller hotels," says hotelier Sandeep Arora.
The Diwali momentum has also hit the smaller towns on the periphery.
"With rain gods smiling this year, the crops have been good and the prices of agricultural commodities have remained largely stable and profitable for the cultivators, which means more money in the kitty for Diwali purchases. Looks like everyone's going for new mobiles, electronic goods, even computers," says Shravan Kumar Singh, a social activist.
The only segment reporting dull business is real estate.
"Full page advertisements have been placed in local newspapers for flats and complexes from Vrindavan to Firozabad but the demand is just not there. All kinds of fancy schemes are latched to booking of flats but still buyers are hard to find," says real estate agent Vinod Kumar.
Himachal Pradesh to set up controlled atmosphere stores
Shimla, Nov 2 (IANS) The Himachal Pradesh government would soon set up controlled atmosphere stores to enable horticulturists earn more for their produce, Chief Minister Virbhadra Singh said Saturday.
Speaking at the closing ceremony of the 15th All India Volleyball and Kabbadi Championship at Kotkhai in Shimla district, he said the government was committed to the welfare of farmers and horticulturists.
"Despite bumper apple produce this year, the horticulturists could not reap the profits as desired," the chief minister said.
He said there was a need for strengthening the marketing network and adopt modern infrastructure.
"We are serious to take appropriate steps in this direction and would set up controlled atmosphere stores so that the produce may have longevity."
He said as the horticulturists sold majority of their produce in the markets of Delhi and other terminal markets in large quantity which resulted in surplus accumulation of apple in these markets, leading to low prices for their produce.
Singh said that besides heavy rains, the government had been successful in maintaining the roads in the apple belt especially the Theog-Hatkoti road.
He said that Theog-Hatkoti-Rohru road would be completed in two phases with financial assistance of the World Bank. The project would be completed in two years, he added.
Horticulture is a vital sector in the state's economy as it generates more than Rs.3,200 crore annual income.
Apple alone constitutes about 93 percent of the total fruit produce in the state.
Sensex scales new high on special Diwali trading
Mumbai, Nov 3 (IANS) The Indian equities markets key indices closed at record high in the special Diwali trading Sunday led by good buying support in auto, FMCG and oil and gas stocks.
The 30 scrip sensitive index S&P Sensex of the Bombay Stock Exchange (BSE), which opened at 21,278.08 points, ended the session at 21,239.36 points, up 0.20 percent or 42.55 points from its previous close at 21196.81 points.
This is the record closing high for the benchmark Sensex. The previous record high was 21196.81 points hit Friday.
The special session called Mahurat trading was organised to mark the beginning of Samvat year 2070, a new year according to Hindu calendar.
Nifty of the National Stock Exchange (NSE) also scaled a new closing high. Nifty ended the day 10.15 points higher at 6,317.35 points.
Chinese premier warns slowing growth raises job concerns
BEIJING (Reuters) - China's slowing growth poses a major challenge to job creation for the world's most populous nation and the country will need to achieve a "golden" balance between structural adjustment and growth, Premier Li Keqiang was quoted as saying on Sunday.
China's economy is set to grow at its slackest pace in 23 years in 2013, at 7.5 percent, as its export sales falter on fragile global demand.
The country's leaders have pledged deep economic reforms to shift away from an export-led economy to one more reliant on domestic consumption, while making it clear they will accept lower growth rates during the transformation. But Li said such a path would present challenges.
"China has already entered a new stage of development. To maintain a growth rate as rapid as in the past is not realistic, but development is the foundation to solving many problems," state media quoted Li as telling a recent meeting with business leaders.
"As a big country with 1.3 billion people, there is no certain pace of development that can cope with so many difficulties and problems, especially preserving jobs."
The premier added that China would need to find a "golden balancing point" between upgrading the economy and maintaining a reasonable growth rate to ensure further job creation.
China's leaders gather from November 9 to November 12 at a Communist Party plenum to discuss deepening reforms of the world's second largest economy.
Li told Chinese and foreign business leaders last week that China would further reform its government finances, financial markets and industry, among other areas.
(Reporting By Dominique Patton; Editing by Ron Popeski)
Sensex hits record high in Muhurat trading
MUMBAI (Reuters) - The BSE Sensex rose to a second consecutive record high in a special trading session on Sunday, led by gains in Indian Bank, Tata Motors and ONGC on expectations of better quarterly earnings, while strong foreign flows continued to boost sentiment.
Stock markets opened for a special 90-minute Muhurat session to mark the festival of Diwali, considered an auspicious time for Indians.
The Sensex has been propelled by foreign inflows of around $3.5 billion since the Federal Reserve unexpectedly delayed tapering of its monetary stimulus.
The index rose to a record high of 21,321.53, surpassing the previous all-time high set just on Friday. It closed up 0.2 percent.
Hindustan Petroleum Corporation Ltd and Indian Oil Corp rose 3-4 percent while banking stocks Corporation Bank , Dena Bank and Indian Bank rose 2.6-15 percent.
(Reporting by Swati Pandey; Editing by Robin Pomeroy)
Banks hope futuristic flagships can tempt new customers
By Lionel Laurent
VELIZY, France (Reuters) - Installation art, interactive walls and a robot doorman; the flagship branches of the world's top banks have come a long way from the iron grilles and potted plants of old.
To compete against online-only rivals and to attract a new generation of customers to branches, banks are installing sleek interiors and hi-tech gadgetry.
ATMs that read fingerprints, touch-screen desks to flick through your finances and videoconference units for expert advice are all on display at payments-technology firm Wincor Nixdorf's showroom in the Paris suburb of Velizy.
"Banks are investing a lot in their retail branches," said Steve Bousabata, head of Wincor's French banking services arm. "They want customers to come back."
The reason is clear: after years of relying on branches to drive retail revenue, European banks expect such networks to supply only 62 percent of sales by 2020 from today's average of 81 percent, according to Equinox Consulting.
Banks, especially those still nursing losses from the financial crisis, are under pressure to cut costs and are balancing the need to pare back branch networks by sprucing up select outlets.
But branches are still the first point of contact for many customers and are still the primary location for product sales like mortgages, new accounts and insurance, underlining the importance of upgrading them for a more tech-savvy generation.
The difficulty is knowing exactly what belongs in the branch of the future and what is better left behind.
"Are all the things we see in branches today going to be seen in branches tomorrow? I very much doubt that," said Mike Baxter, head of management consultancy Bain's Americas Financial Services practice.
"There's an awful lot of experimentation of stuff that turns out to be unsuccessful and uneconomic."
Flashy "bank of the future" branches mixing gadgetry with design similar to Apple's
They include lounge areas, giant interactive screens and other trimmings such as handbags for sale and pieces of art.
Gauging their success is tricky. BNP was willing to give data on its refurbished flagship branch near the Paris Opera - which three years ago was fitted with a wall covered in plants, iPads for customer use and a touch-screen desk - saying that footfall was up 40 percent and new clients up 25 percent.
Italy's Unicredit also said that footfall and new business were up at its newly revamped flagship branch in the Bulgarian capital of Sofia, which offers "welcoming scents" and a touch-screen wall. Visits are up by an average of 60 percent while loans and deposits have doubled, a spokeswoman said.
On the other hand, BNP has done away with some ideas that failed to click with consumers: it has scrapped the iPads and touch-screen desk in favour of an interactive wall.
Deutsche Bank and Barclays declined to give data on single branches.
More broadly, some 88 percent of bank executives view their flagship branches in main street areas as being "successful" in promoting brand awareness, according to a survey by Equinox.
ROBOT BANKERS
Beyond Europe, the experiments are even bolder.
In South Korea, where mobile banking has flourished faster than in the West, Hana Bank allows mobile users to transfer money to one another by physically "bumping" smartphones. Shinhan Bank has also introduced unmanned "smart" branch kiosks that communicate with handsets.
Commonwealth Bank of Australia is using a mobile app to drive mortgage sales by offering clients data on houses for sale, while BBVA's
Customers of the Washington D.C. branch of Carolina Premier Bank
Although some of these advances may prove too gimmicky or not functional enough to catch on, long-distance banking via videoconference is seen as a way to reduce branch staffing without hurting service, though customers still prefer a physical point of contact somewhere along the line.
"Mortgage specialists sitting at headquarters, connecting via videoconference to the relationship manager; that works," said Bain's head of global retail banking, Dirk Vater.
"But bank-to-consumer, with people sitting on the sofa using Skype and Facetime, has not been adopted yet. It will eventually ... But not yet."
Increased ATM functionality as used by Citibank Asia and more secure biometric readers are also promising, he added.
The ultimate question of whether to scrap the branch entirely is one that is not being considered, consultants said.
The preference is for a "hub-and-spoke" model that pools resources in urban areas and reduces smaller, rural branches.
While this may lead to more ambitious flagship outlets, it can create gaps for new competitors to fill: France's Nickel, which offers a low-cost current account, is creating a branch network with the country's 27,000 tobacconists.
"Even in developed markets, the death of branches is somewhat exaggerated," Ernst & Young wrote in a 2012 report.
"We will see further evolution of the branch experience from something that looks like a local government office ...(to) a hybrid between coffee shop and technology store." (Additional reporting by Steve Slater in London, Tsvetelia Tsolova in Sofia, Jackie Range in Sydney and Douwe Miedema in Washington; Editing by Carmel Crimmins and Giles Elgood)
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