Qutub Minar

In 1199, Qutub-ud-Din raised the Qutub Minar either as a victory tower or as a minaret to the adjacent mosque. However, only the first story was completed by Qutb-ud-din. The other stories were built by his successor and son-in-law, Iltutmish (1211-36 AD). The two circular stories in white marble were built by Firozshah Tughlaq in 1368, who used marble to face the redstone. From a base of 14.32m it tapers to 2.75m at a height of 72.5m. It is a red sandstone tower covered with beautiful and striking carvings and is inscribed with verses from the holy Quran. Its projecting balconies with inscriptional decorative bands on different storeys heighten its decorative effect. With a height of 72.5 m and 379 steps, it is the highest stone tower in India, as well as one of the finest Islamic structures ever raised and Delhi’s recognised landmark.

Qutub Minar is the tallest brick minaret in the world, and an important example of Indo-Islamic Architecture. The tower is in the Qutab complex in South Delhi, India. The Qutab Minar and its monuments are listed as a UNESCO World Heritage Site.

The Qutub Minar is 72.5 metres high (237.8 ft) and requires 399 steps to get to the top. Although formerly closed, visitors can reach the top of the tower by paying a fee of Rs.500.00   or about $12.00. The diameter of the base is 14.3 metres wide while the top floor measures 2.75 metres in diameter. Surrounding the building are many fine examples of Indian artwork from the time it was built in 1193. A second tower was in construction and planned to be taller than the Qutub Minar itself. Its construction ended when it was about forty feet tall.

 Inspired by the Minaret of Jam in Afghanistan and wishing to surpass it, Qutb-ud-din Aibak, the first Muslim ruler of Delhi, commenced construction of the Qutub Minar in 1193; but could only complete its basement. The developments of architectural styles from Aibak to Tuglak are quite evident in the minaret. Like earlier towers erected by the Ghaznavids and Ghurids in Afghanistan, the Qutub Mahal comprises several superposed flanged and cylindrical shafts, separated by balconies carried on Muqarnas corbels. The minaret is made of fluted red sandstone covered with intricate carvings and verses from the Qur’an. The Qutub Minar is itself built on the ruins of Lal Kot, the Red Citadel in the city of Dhillika, the capital of the Jat Tomars and the Chauhans, the last Hindu rulers of Delhi

Best Time to visit is October to March from Sunrise to Sunset. To reach here one may opt thorough Air, rail or road.

Air :  Delhi is the main gateway city for northern India with a modern airport. All major international airlines in the world fly through Delhi. Indira Gandhi International Airport is located at 23km southwest of Central Delhi and the domestic terminal at Palam is 5km away from the international terminal.
Taxi and coach transfer is available from both International and Domestic Arrivals. Pre-paid Taxi (a service with journey fare paid at the booking counter), air-conditioned and non- air-conditioned coach counters are located immediately outside the customs Hall in International Terminal and outside Baggage Claim area in Domestic Arrivals.

Airport Coach (non-air-conditioned) is operated by Delhi Transport Corporation (via Connaught Place and Railway Stations) to Inter State Bus Terminus (ISBT), Kashmiri Gate and by Ex- Servicemen’s Air link Transport Service to Connaught Place. The coach covers all major hotels enroute.
Rail: Delhi is the hub of the Indian Railways network with Express trains to all parts of the country. The city has two major railway stations in New Delhi and Old Delhi. New Delhi station is within walking distance of Connaught Place and Main Delhi station is about 7km from Connaught Place. Delhi offers Express trains to all parts of the country. For the foreigners, tickets are available at the International Tourist Bureau located at New Delhi station. The main ticket office is at the IRCA building on Chelmsford Road, Pahar Ganj, between New Delhi station and Connaught Place.

Shatabdi Express air-conditioned fast tourist train operates to Bhopal (via Agra, Gwalior, Jhansi), Lucknow (via Kanpur) and Chandigarh, provides access to some of the neighboring tourist centres.

Bus:  Buses from all the major places in Uttar Pradesh, Punjab, Haryana, Himachal Pradesh, Madhya Pradesh and Rajasthan are available for getting to Delhi. During the summer months, air-conditioned coaches are recommended. Delhi Transport Corporation (DTC) operates special services from railway stations to different parts of the city

Last week there were two important developments: the stock market crash and Reliance Power IPO response. The stock market crashed with the Sensex down by 8.70 per cent and Nifty by 7.98 per cent. The Sensex slumped from 20,827 points on January 11 to 19,013 points on January 18. Nifty, which touched 6,388 points at its highest some weeks back, closed at 5,705 points, down by 6.9 per cent. In the Sensex list of 30 shares, 25 shares closed in the negative. In the 50 listed Nifty shares, 45 shares closed negatively. All the BSE sectoral indices were down: High losses were in the oil and gas (-5.88 per cent) realty (-5.87 per cent) and bankex (-5 per cent).

The market crash was due to a number of factors: the slowdown in the US economy, heavy sales by the FIIs, slowdown in the inter-bank call money transit due to some fault in the Reserve Bank’s transfer system software, heavy losses to traders in the future and derivative market due to market crash and the demands for higher margins by the banks.

Another factor was that the Indian market with the high valuation in the P/E ratios was considered expensive by the FIIs, who shifted funds from the Indian market to the other relatively cheaper markets. It was also on record that correction was on the way in the overheated stock market valuations. The Prime Minister’s Economic Advisory Council also brought down the target of economic growth in the fiscal year 2008-09 from 9 per cent to 8.5 per cent in view of slowdown in the US economy, high crude prices and slow infrastructure development in India.

The Reliance Power IPO was oversubscribed by 72 times. It set up a new record. The retail investors’ subscription is estimated at 15 times. This may be good for Reliance Power Company but it led to heavy profit taking in the stock market by the retail investors who collected funds for subscribing to this IPO.

A major question today is when would the market recover? The market has already corrected itself by a fall in market indices between 8 to 9 per cent. Some of the top blue-chip scrips have suffered in the Sensex. Reliance Industries is down by 6.57 per cent, DLF by 7.37 per cent, ICICI Bank by 5.78 per cent, Reliance Energy by 4.01 per cent and Larsen and Toubro by 3.62 per cent. It may also be noted that the market fall took place in spite of excellent quarterly results declared by Reliance Industries and some other companies.

Even the latest quarterly results in most cases were in accord with market expectations. On last Friday, even the US, European and even the Asian stock markets were positive while the Indian stock market slumped. It would appear that though early this week there may be some minor fall in the market indices, the market is likely to stabilise and turn positive later this week and, if not, surely next week.

Investors, both long term and short term, have the opportunity to go in for select buying in those shares which are fundamentally sound and are backed by trusted managements. Reliance Industries, ABB, Larsen and Toubro are excellent scrips. Among the low-priced shares, one may list Tata Chemicals, Gujarat Alkalies. Infosys may also be good on a long-term basis.

It has been a traumatic couple of days for our market. Stocks of well-established companies have lost between 50 and 70 per cent of their market value in less than a week’s time.

That is the kind of damage that investors, and particularly traders, take a very long time to recover from. Most of the pain has played out in stock futures where traders have been butchered. While a considerable portion of the open interest has been wound down, there is still quite a bit of outstanding positions left: perhaps the reason mid-caps failed to recover as much from their lows as index stocks did: The purging continues there.

Point to point, the Nifty crashed 30 per cent from the recent high to its intra-day low of sub 4, 500. When an index collapses 30 per cent in a week, the question about the possibility of a bear market has to be raised. It is an uncomfortable, even scary, thought but it is best not to be in denial and sweep it under the carpet.

Let me begin by sticking my own neck out. I believe the case for a prolonged bear market is not very strong. That does not mean a thing as I could be wrong, my view coloured by four years of utter bullishness that one week of mayhem cannot alter easily.

There are many risks to this hypothesis. Local sentiment could be one. After a fall of such proportions domestic participation in equities could certainly die down for a long time. We have seen that after May 2006 when mid-caps underperformed for many quarters and individual portfolios languished. Globally, things are murky and there could certainly be panic withdrawals by global investors from equities as an asset class. It may be short-lived, but could happen. Coinciding with all this is some slowdown in our earnings trajectory before the ongoing capital expenditure begins to spur growth again in 2009-10.

Having said all this, India seems much better placed than most other economies and markets. Our economic growth is robust, most of our key sectors are not expected to decelerate significantly on account of a global slowdown and domestic consumption should not be affected much by a financial market meltdown. My own feeling is that we may now need to consolidate in a lower price band for some time and to that extent a “bearish” patch is entirely possible for a couple of quarters.

In any case, bear markets nowadays are more compressed as bad news gets factored in at the speed of light, as we have seen this week. Hard work may lie ahead for the next few months, but if one uses this zone to buy good quality stocks and hunker down I think it may be rewarding by the time the year is out. Maybe I am” part of the classic story of being unable to see a bear market till it is upon us, yet would remain optimistic till the fundamentals worsen visibly: I hope it won’t come to that.

The biggest ever Initial Public offer (IPO) in the history of India’s capital market has not only made Anil Ambani the richest man in India and probably in the world but has also helped the issue’s bankers make a killing. On conservative estimates, bankers to the Reliance Power issue will make more than Rs 180 crore from overnight interest payments ‘on the application money they have received in the IPO before refunds are given to applicants who could not get their full intent fulfilled.photo.cms.jpg (JPEG Image, 200×270 pixels)

The refunds do not carry interest payments but banks parking the funds get some. However, investment bankers say that a part of the profit from the application money is being used for bearing some costs such as registrar fees or postage fees.

and retail investors would be to be tune of Rs 112,063 crore. The issue had received bids for Rs 745,676 crore.

The company came out with 26 crore equity shares. Of this 3.2 crore was reserved for the promoters. The net issued to the public was 22.8 crore shares. Of this, 30 per cent, or 6.84 crore shares, were reserved for retail investors at the rate of Rs 430 per share.

The actual issue size for the public was Rs 10,121 crore, not counting the 3.2 crore shares subscribed to by the promoters. The issue has demonstrated the fact the Indian market has the ability to raise resources of any magnitude if the company has right projects and the promoters have right background. It also proves that the promoters need not to cross over the Atlantic to raise money. Rather, investors from across the Atlantic are willing to do that in search of good opportunities.

Although the call rate in the money market is currently hovering around 8 per cent, even at the rate of 6 per cent, bankers would make Rs 18.4 crore per day on the money garnered but intended to be refunded without interest payment. And on an average basis this money lies with banks for around 10 days before they start giving refund to the investors. This, in turn, translates into a floating income of around Rs 184 crore for “the bankers as a whole.

There are seven private sector banks - ICICI Bank, ABN Amro, HSBC, Standard Chartered, HDFC Bank, Kotak Mahindra Bank and Axis Bank - involved in this IPO.

Leader of the Opposition Lal Krishna Advani has climbed one more step in fulfilling his ambition of becoming the Prime Minister when National Democratic Alliance endorsed his candidature. Earlier, the BJP had announced its intention to fight the next Lok Sabha elections under the leadership of the former Deputy Prime Minister. The NDA decision disproves fears in certain circles that the endorsement of his candidature would not be a smooth affair.

With health preventing Mr. Atal Bihari Vajpayee from playing an active role in politics, BJP leaders did not have much of a choice when they opted for Mr. Advani.

On his part, Mr. Advani also played his cards well by persuading his party to announce that he would be the prime ministerial, candidate just before the results in Gujarat were announced. It was a clever move to ward off any possible threat from Chief Minister Narendra Modi.

It was Mr. Advani’s calculated attempt to make himself more ’secular’ and thereby more endearing to the NDA allies that he made that statement about Mohammed Ali Jinnah while on a visit to Pakistan. He seems to have managed to win back the confidence of those sections of the Sangh Parivar who were upset with him on the Jinnah issue. Even so, he has a long way to go before achieving his ambition. It is true that the string of assembly elections in the recent past have been favourable to the BJP. But before the next general elections are due, Madhya Pradesh and Rajasthan - ruled by the BJP - will go to the polls.

Rajasthan - ruled by the BJP - will go to the polls.

By-election results from these states do not suggest that the voters are happy with these governments. Equally important, the BJP continues to be in bad shape in Uttar Pradesh which accounts for the largest number of seats in the Lok Sabha.

The NDA is no longer as cohesive and large as it used to be when Mr. Vajpayee was its leader. Of course, its decision on Mr. Advani provides clarity to the political situation. This will force the Congress to announce its own candidate for the post of prime minister. Last time it contested the elections without any such candidate. It was Mrs. Sonia Gandhi who nominated Dr. Manmohan Singh for the post. It remains to be seen whether the party would like to fight the elections under Dr Manmohan Singh’s leadership or not. From the experience in Gujarat, Uttarakhand and Himachal Pradesh, the Congress would have realised that not having an identifiable leader in an election is a disadvantage.

The year has begun on a somewhat strange note for our stock market. It is neither running away nor breaking down, simply gyrating in a range. Sessions have been volatile, mid, and small-caps have sold off while large caps have taken turns to hold the Nifty up. Almost running to stand still. The Nifty seems in a broad range of 6,100-6,350 while the broader market skims off some of its recent excesses.

It is important to understand the backdrop for such a market. There is an overload of material information for the market at this point, information that is pulling it in all directions. Globally, the cues from the US are disastrous, yet the expectations from the US Fed have moved swiftly from 25 to 50 and now even a 75 basis point cut in January. The crashing Dow may be affecting sentiment may but the prospect of much more liquidity coming this way is balancing that negative trigger. Take the primary market.

While the large IPOs of January and their runaway grey market quotes are bolstering investor sentiment, the fact that they have sucked away a lot of money from the secondary market is clearly visible in the stress on small-caps. Technically, the futures market is extended but the carrot of a good budget is keeping trader sentiment afloat. There is some discomfort among professional investors about the gay abandon with which lofty valuations are being ascribed to dreams and Excel sheets but a new breed of retail investors is neutralising this skepticism with the weight of money. Finally, there is the earnings season.

The market has one eye on all these varied pulls and pressures even as it focuses on earnings that are tumbling out every day. Add to this global commodity swings, the dollar, local interest rate expectations and one can begin to understand why the market is not making a decisive dart in either direction. The triggers are mixed and finely balanced, there is almost a violent equilibrium almost a violent equilibrium that has been struck out.

 Also, the valuation aspect is important. Having reached where we are with stock prices, it may be becoming a struggle to climb to even higher PE platforms without the crutch of delivered earnings growth, probably the reason why the market could be pausing to see the numbers before making its next move.

Violence, political or otherwise, is part of life in Kenya. The irony is that Kenya is also one of the mature democracies in Africa: Multiparty elections are held regularly and even though politics is based on tribal divisions, the judiciary, Parliament and the vibrant Press apply correctives on the executive. With tolerance of corruption and violence as part of society, Kenya has found its own brand of democracy.

The current tribal warfare on account of alleged rigging of elections had begun long before the polls were held. Even the meetings held for determining party candidates were marred by bloodshed.

Having had to fight incessantly with wild animals for survival, physical battle for political survival is a natural extension of Kenyan life. Human life is heavily discounted there. Political calculations, rather than fear of further loss of human life, will bring about a compromise in the end.

As the High Commissioner of India to Kenya, Mr. T. P. Sreenivasan happened to be with the Kenyan Foreign Minister in his office on the morning after the severe beating of a handicapped opposition leader. The newspapers that morning had carried graphic pictures of the incident. He could not but mention the incident to the minister. Mr. T. P. Sreenivasan thought that he would describe the incident as an unfortunate one, which was being exaggerated by the Press. He shocked Mr. T. P. Sreenivasan when he said: “He will be killed one of these days!” He added in good measure that violence is part of politics in Kenya and that people joined politics with full knowledge of the t attendant risks. He offered no apology, not even regret.

Kenyan elections of 1995 left Mr. T. P. Sreenivasan with broken limbs and ribs as the opposition to President Moi thought that the Indians in Kenya should be given a message that they were not safe without the patronage of the opposition. Mr. T. P. Sreenivasan had ignored messages that Indians should make financial contributions to the opposition parties also, not just to those in power.

The best way to demonstrate this was to hit the Indian High Commissioner himself. After three assailants broke into their home and attacked his wife and Mr. T. P. Sreenivasan, President Moi said publicly that the Indian High Commissioner was the victim of political violence in the country. The opposition said promptly that Moi had done it to discredit the opposition!

To avoid an explosive situation arising out of a sense of extreme insecurity, Mr. T. P. Sreenivasan made it out as though the whole incident was nothing but an act of burglary, though the intruders had stolen nothing from the house. He said that he had vowed to do everything possible for India Kenya friendship and the shedding of some blood turned out to be a part of the process.

Nothing could be better for the politicians to settle scores than an atmosphere of violence taken to be the norm. There are stories of Presidents disposing of inconvenient ministers and others by eliminating them. How do the Presidents control violence in the country if they themselves are not averse to resorting to violence to settle scores?

In India, we accept communalism in politics as a necessary evil, but in Kenya, tribalism is the very essence of politics. The revered Jomo Kenyatta was the leader of the largest tribe, the Kikuyu, and his successor should a1so have been from the same tribe, but the wily Moi, a Kalenjin, struck up an alliance with the Kikuyu and grabbed power. The election of Kibaki marked the return of the Kikuyu to power, but Moi escaped retribution by quickly reaching an understanding with Kibaki.

Kibaki’s challenger, Odinga, is a Luo, the second largest tribe in the country. Smaller tribes can share power only if they seek alliances with the larger ones. Before or after the elections, they have to seek viable alliances to grab a piece of the pie. Uncertainty and instability are essential ingredients of such a political mix.

In the latest round of violence and tribal warfare reports appeared to the effect that Indians in Kenya were being targeted. This may not be true in the context of the Kibaki vs. Odinga situation as the Indians are not particularly close to either. Indians have been constant targets of violence not because of any particular anti-Indian feeling, but because they are the richer of the species. They have bigger homes and more wealth for the looters and the thieves.

Kenyans, who serve in these homes, are witnesses to conspicuous consumption by Indians. Many homes resemble Hindi movie sets the Kenyans watch with envy every day. Many Indian are honest businessmen who have made money by the sweat of their brow. But envy and greed on the part of the Africans make them ready targets of violence.

Kenyan Indians have so many interests in the country that they consider a few robberies and deaths acceptable risks. They send the younger generation away to the West, but they themselves stay on to enjoy the fruits of their labour over the years. It must be mentioned, however, that there have been cases of deception, exploitation and sheer thuggery on the part of some Kenyan Indians.

As unprincipled partners of wealthy Africans, they have looted the country and fled to greener pastures. They spoil the name of India and Indians in Kenya and escape nemesis in other countries.

Much is being made of the Indian government’s lack of initiative to save the Indians in Kenya and to resolve the present conflict. Any foreign country can assist its citizens only by evacuating them in extreme emergencies. Kenya will not accept any plea for special treatment for Indians when the whole country is ablaze. Foreigners necessarily face such risks in any country and law should be the s.ame for all citizens and residents.

If there is no racial discrimination or racial hatred against the Indians as in the old South Africa and ‘ Rabuka’s Fiji, India can only offer advice to its citizens and people of Indian origin, not demand any special protection.

A national government of reconciliation and unity, with proportional representation for all parties seems to be the only way forward.

It appears that Archbishop Tutu, the master tactician and diplomat, appears to be heading in that direction. But tribalism and violence will not disappear and Kenyan Indians have to continue to live with the risks involved.

The CPI (M)’s wish to form a third alternative at the Centre - minus the Congress and the BJP - is an effort aimed at preserving its separate identity. This effort, however, could end up strengthening the BJP and its allies because the public still sees the CPI (M) as a sympathiser of the Congress and the UPA, even though the Left party has opposed the Indo-US nuclear deal and some other decisions taken by the UPA.

Prakash Karat, the CPI (M)’s General. Secretary; is desperate to convey the impression that his party has never supported the UPA but agreed to do so on the promise of a common minimum programme and also because it wanted to isolate the communal forces led by the BJP. But he and his colleagues know that it is important to maintain the CPI (M)’s ideological profile in order to motivate its cadres. Karat is accustomed to taking the high moral ground on issues and his detractors have often accused him of pursuing an agenda that ignores the practical realities of politics.

The CPI (M) knows that the general elections may be round the corner and if it persists with its threat of withdrawing its support from the UPA on the nuclear issue, it will find it very difficult to align itself with either the UPA or the NDA after the poll results are out.

Therefore, it has little choice - but to float the idea of a third alternative, comprising regional parties. In fact, apart from qualifying as a national party by down by the Election Commission, the CPI (M) has also been reduced to a regional outfit. It has limited presence outside West Bengal, Kerala and Tripura. Its objective is to cobble up an alliance of the TDP, DMK, Samajwadi Party and National Conference, with the hope that some others like Nitish Kumar’s Janata Dal, Sharad Pawar’s NCP and Ramvilas Paswan’s Janshakti Party would join it.

But the question is whether such an alliance would provide the third alternative, which in electoral terms has never worked out in Indian politics as long-term option. Post-poll alliances are always fragile as V.P. Singh, H.D. Deve Gowda, I.K. Gujral and A.B. Vajpayee (during his 13-day stint) had discovered. It is unlikely that some of the parties that the CPI (M) maybe eyeing for a third alternative may join me hands before the elections are held. The tie-ups for such a formation will happen only if the big two - the Congress and the BJP - fail to make the grade.

After the polls, many of the players will try to align themselves with the winning combination and the CPI (M) may be left out in the cold. Its worries may increase if the party’s seat count goes down. This may be less than those won by an ally such as the Samajwadi Party, which would then act as the big brother. Another significant dimension to the CPI (M)’s desire for a third alternative is whether it will enjoy any credibility among the people. In West Bengal, the Left constituents don’t see eye to eye. For instance, the CPI has asked the CPI (M) not to ignore the other allies and run the Left Front government as a one-party government. There were differences over Nandigram and some other matters too.

So when the CPI (M) is unable to carry with it even those who are ideologically similar, then how will it go along with other parties which have their own regional agendas? Would it like to face the risk of allowing separatist forces and regional chauvinists over the national agenda? What will happen to Indian-State if various constituents of an alliance pull it in different directions? Will it not land the CPI (M) in a mess? Won’t its credibility be in question?

At this stage, it is also very difficult to think a central government without the Congress or BJP acting as the glue. The performance of both Congress and the BJP may have left a lot to be desired, but as large parties they are capable of providing stability. Also, they would ensure that regional interests do not override national interests.

If one traces the origins of the third alternatives have seen till date, one can give the example of 1989, when the formation of the V.P. Singh government with the BJP and the CPI (M) supporting it from outside had anti-Congressism as main motivating factor. In 1996, the Deve Gowda government was formed to keep BJP out. But both the experiments failed to achieve the desired result and the country faced three quick elections (1996, 1998 and 1999), before some stability was achieved.

True, the Congress dislodged the government in 1998, but it was unable to cobble up majority required to provide an alternative to the BJP and paid the price. The CPI (M)’s ideological purity is a myth. In 1967, 1977 and 1989, it joined hands - indirectly or directly - with the BJP, which is often flaunted as its No. 1 enemy. On the nuclear deal, the two ideologically opposite parties are coming in the way of any kind of consensus.

The CPI (M)’s behaviour has prompted some Left leaders outside the party to think that a third alternative at this stage will only help the BJP to rejuvenate itself. For them, the fight against communalism is foremost and any deviation from it could put this agenda on the backburner.

Today, public support of the Left is low because most tl1ink that it is ‘bullying’ the UPA. It is true that the Left wants to keep its constituency intact by identifying itself with the pro-people measures. They claim that they were initiated by the UPA due to the Left’s pressure. It also spared no efforts to attack the Congress even during the polls against the BJP in Gujarat. Why? Because a weak Congress would need the Left’s help to sustain it.

The events that are going to unfold till the Budget Session would determine whether the national polls will be held this year or the next. Similarly, the posturing of all parties, including the CPI (M), will keep the voters guessing about their real agenda.

Last week proved as the most eventful week on the stock markets. What started as a bloodbath on the street ended with a solid recovery? The markets witnessed unprecedented volatility last week, with losses and recoveries of a 1,000 points becoming par for the course. The magnitude of the volatility could be gauged from the fact that the last week was witness to both the highest ever single-day loss as well as single-day gain on an absolute basis on the Sensex. Bears in the end triumphed, pulling the Sensex (18,361) down by a little more than 3 per cent and the Nifty (5,383) down by nearly 6 per cent.

Credit crisis in the US and fears of a US recession caused bloodbath on the domestic bourses at the onset of week with share prices falling like nine pins. Margin calls created havoc on the bourses in causing a steep decline in share prices that was initially triggered by a setback in global markets and selling by foreign institutional investors. Reserve Bank’s review of its monetary policy is due this Tuesday, which would set the tone for markets.

After a surprise 75 basis point cut in Fed rate by the US central bank, market men expect a 25 basis point cut in repo rate by the RBI. Though the corporate results have been in line with expectation, any adverse news from overseas may further dampen the sentiment. OnMobile provides value added services (VAS) in the telecommunications space and software products in India with an expanding international presence, particularly in the emerging markets in Asia. It has a broad range of applications delivered by its carrier customers (telecom service providers) to their end-user subscribers.

These products include ring-back tones, voice portals, ringtone downloads, subscription manager, contests, music messaging, on-device client software, mobile radio, dynamic voicemail, voice SMS, and missed call alerts.

OnMobile was incorporated as Onscan Technologies India Pvt. Ltd. in September 2000 by its promoter OnMobile Systems Inc (OMSI) that is a startup firm of Infosys to develop telecommunications software platforms and applications or the mobile telecommunications industry. Subsequently, it was renamed as OnMobile Global Ltd (OMGL) in August 2007. Its customers include the major telecommunications carriers or operators in India such as Bharti Airtel, BSNL, Idea, R-com, Tata Teleservices and Vodafone Essar.

Due to competitive industry dynamics, mobile tariffs’ have been falling and there has been pressure on the average revenue per subscriber (ARPU) of telecom operators. Thus, telecom operators would be looking for more VAS revenue at very little incremental capital expenditure. This is a potential lever to counter the trend of falling ARPUs. It will result in decent growth opportunity for OnMobile as VAS will have higher growth trajectory on lower base and increasing acceptability.

The initial public offer (IPO) is priced very aggressively at the higher end of Rs.450 which discounts its annualised 2008 earnings?  Rs 10.3 approximately 45 times. To put things in right perspective, investors must also keep in mind that the company has been growing at 100 per cent compounded growth at net profit level for the last three years. In our view, investor with risk appetite may apply at cut off with a two year perspective. 

Organised crime is not unique to India. In the advanced West also, where huge profits are available in the flesh trade, drug peddling, money laundering and arms and human trafficking, thousands are organised in criminal syndicates ready to kill or maim for profit.

However, the extent to which hardened criminals have found entry in our legislatures, ministries and big businesses of late and accumulated power, prestige and apparent immunity from the rule of law in populous states such as Bihar and Uttar Pradesh is a matter of immense concern for the whole nation.

According to the Intelligence Bureau’s latest estimate, nearly one-fourth of MPs and MLAs from the two states have heinous criminal cases registered against them.

In this context, the introduction of the Uttar Pradesh Control of Organised Crime Act (UPCOCA) by the Mayawati government to counter the menace of a well-entrenched mafia should have been widely welcomed. Yet, the cancer of criminalisation has spread so far today that any reckless surgery also threatens to aggravate it further now. The opposition to the wide ranging powers bestowed by the above legislation on police and magistrates has thus emanated from all political parties in Uttar Pradesh barring the ruling BSP. The criminal-politician conundrum in our society needs to be examined very closely in this complicated scenario.

The N.N. Vohra Committee, appointed in the wake of the 1993 bomb blasts, had observed that in several parts of the country “the mafia is virtually running a parallel government, pushing the state apparatus into irrelevance — criminal gangs and armed senas have developed extensive contacts with bureaucrats, politicians, media persons - (and) even the members of the judicial system”. A decade after the publication of this report, even this alarming portrayal appears rather dated as the virus of criminalisation seems to be crippling not only the polity today but also the civil society as a whole.

The Deol Committee Report submitted by the Intelligence Bureau to the Prime Minister’s Office spells out the same in some detail. Till the early sixties, for example, criminals could hardly dare to stand in elections. However, today, in some states, they have graduated from aiding politicians to controlling them. Honest officers are transferred, promoted and sometimes murdered at their instance. Their henchmen can run kidnapping and extortion rackets even from jails while agents from enemy states use them for unleashing terror, riots and separatism at times.

Their “businesses” are not only run along corporate lines but industries such as real estate, bootlegging, entertainment and lately, the printing of currency too seem to be swamped by them. Yet, this is not the entire story of criminalisation in India. The problem has actually infected the very core of our society. For instance, extortion and molestation have been reported even from places of worship; vice-chancellors of some of our universities have been known to have hired criminals to maintain “order” on campuses.

In several smaller towns, it is scary for anyone to move alone on a new vehicle or with cash; youngsters from affluent families are also taking to kidnapping and carjacking just for “fun”. Prostitution rackets have moved beyond brothels and hotels to middle class housing societies and government offices. What is even more worrisome, we the people have not only watched the spread of the rot silently but have also learnt to laugh at it as evident in block busters flooded with the underworld’s lingo and paeans sung for films tars who would not hesitate to dance like bar girls for the underworld.

Even in smaller towns and villages now, mobs seem ever ready to lynch petty offenders but “ethnic” dons have enough clout to win elections with huge margins. Sadly, our academic discourses and textbooks seem nowhere ready to even register the problem in spite of this grim scenario.

The need for a major overhaul in our legal system to plug the loopholes which enabled the Mafiosi to spread its tentacles so wide is pressing. According to the latest report of the National Crime Records Bureau, the rate of conviction’ in the adjudged cases, in 2004, was less than 40 per cent while the percentage of cases pending was as high as 85 per cent of the total. Yet, an overdependence on laws which merely inflate the powers of the police and the ruling party to hang “criminals” selectively may turn out to be a case of killing a patient through over-medication.

Undoubtedly, the gauntlet thrown by Ms Mayawati at the bahubalis is bold and praiseworthy. Yet, just as in the case of POTA and TADA, the critical point is whether we need firm and fair implementation of existing laws or partisan application of draconian new acts. Fortunately, Uttar Pradesh, despite being high on crime and violence, has until now remained relatively free from the problem of Naxalism and separatism. If the legal process is misused for crushing dissent, this saving grace of the Hindi heartland may also erode.

A number of inquiry commissions have listed a slew of small but vital steps for checking organised crime including a speedier criminal justice system (the pendency of 2.5 crore cases in the lower courts and another 3.5 lakh in the High Courts is truly demoralizing for the nation), better collation of intelligence -nationally and internationally, foolproof protection to witnesses daring to help the law against murderous gangs, electoral reforms to debar history-sheeters from elections and prison reforms to turn jails into reformatories rather than universities of crime.

In addition, extensive computerisation of banks and property transactions as well as police stations and, above all, a resolve among political parties to not grant tickets to criminals for elections are needed. Unfortunately, a few of these have been meaningfully implemented. In this scenario, the media can make a vital contribution by keeping a relentless focus on the reach of the mafia, particularly the criminal antecedents of politicians and bureaucrats whether calling themselves nationalists, socialists, revolutionaries or watchmen of tradition or community.

The stakes in this war are very high indeed. Organised crime not only creates a spiral of violence and insecurity but also stalls development and perverts the functioning of democratic institutions entirely. Once over the hill, the slide into chaos or, its obverse - fascism - may be extremely difficult to arrest in the present state of our political culture.

Prime Minister Manmohan Singh’s statement that the cabinet is yet to take any concrete decision on setting up of the Second State Reorganisation Commission (SSRC) puts the hopes of regions aspiring to be independent of their ‘mother states’ on a backburner. The demand for separate entities has come from ‘Telengana’ (Andhra Pradesh), ‘Vidarbha’ (Maharashtra), ‘Gorkhaland’ (West Bengal) and ‘Purvanchal’, ‘Bundelkhand’ and ‘Harit Pradesh’ (Uttar Pradesh), if we go by the recent ‘promise’ of UP Chief Minister Mayawati. While there is no doubt that political considerations have strongly influenced the PM’s - and Mayawati’s comment, especially with reports indicating that the Telengana Rashtra Samiti (TRS) views the formation of such a panel as delaying tactics by the Centre, there is no denying the fact that the bifurcation of large states makes good sense as far as governance and resource management are concerned.

The first reorganisation of states took place in 1956. However, states like Chhattisgarh, Uttarakhand and Jharkhand have been carved out since then, without the SSRC coming into the picture. Hence, the objection from TRS, which says that its demand should also be treated as a one-off and cleared without any further delay. The TRS has now set a deadline of a March 6 for a formal commitment on Telengana by the PM, failing which it would ask its four party MPs, 16 MLAs and three MLCs to resign.

In fact, a reason for demanding a separate Telengana d forms the essence of similar such demands: that the region should be treated “on par with other parts of the state”. It is this sense of alienation that certain parts are always the blind spot of the nerve centre of politics of that state which had led to such demands. And that is not far from truth. Even if we leave politics out, it becomes impossible for any government to administer even handedly considering the resource crunch. In some other cases, resource rich but poorly-developed areas will always question why their wealth is being used to bankroll other parts of the state.

This is not to say that small is necessarily beautiful. The litmus test will always remain the quality of political will and administrative wherewithal a new region has. This demand should not be used as a tool to further political identity issues. Sound administrative sense should be the only criterion for such divisions. A small state emerges in India only when a big stone is broken into small pieces but the chemistry remains the same. So, while it is true that smaller states are easier to manage and govern, they also crucially need a new chemistry of development and much better quality of governance. Otherwise, it will be the same old story all over again.

Country’s largest lender SBI decided to raise Rs 16,736.31 crore from its much-awaited rights issue, which will be priced at Rs 1,590 a share. According to a decision of the Central Board of the bank here, existing shareholders would be given a share for every five shares.

The price at which shares would be offered represents about 36 per cent of discount to State Bank of India’s current share price. This means shareholders would get a share at a premium of Rs 1,580, if face value of Rs 10 is considered, but at a discount of Rs 889, if today’s current price at Rs 2,469 on the Bombay Stock Exchange is taken into account.

For the rights issue, the bank also decided to raise its issued capital to Rs 650 crore from the existing Rs 526.30 crore. The bank would also issue shares to employees under Employees Stock Purchase Scheme, SBI said in a filing to BSE.

The decision of the SBI’s board came one-and-a-half months after the union cabinet gave nod to the rights issue. The issue would also be offered to existing SBI’s Global Depository Receipts (GDR) holders.

The union government is expected to invest around Rs 10,000 crore in the rights issue to maintain its stake at over 59 per cent, for which it would issue bonds to SBI. “We have decided to subscribe to the rights issue. We intend to issue bonds of Rs 10,000 crore for the purpose,” finance minister P Chidambaram had said after the Cabinet meeting, which approved the rights issue.

These bonds would be redeemed through the proposed Securities Redemption Fund (SRF), he said adding the SRF would be funded through taxes and dividends received from SBI.

Annual cost of servicing these bonds would come at around Rs 790 crore, Chidambaram had said, adding the government is required to put at least this much amount to the redemption fund. “We are subscribing to the rights issue, but we will pay to it on deferred basis,” he had said.

The bank has been exploring various options to mop up funds, but a rights issue would allow the bank to raise capital without diluting the government shareholding. It is understood that the government was not in favour of a follow-on public issue, where its stake would have been diluted from the current over 59 per cent to 55 per cent, the minimum prescribed under the SBI Act.

Earlier this fiscal, the government purchased 59.7 .per cent stake of Reserve Bank in SBI in a revenue-neutral exercise.  SBI Life Insurance has invited bids from IT vendors for integrated Treasury System Solution.

“The expression of interest has been invited from software vendors for the supply, installation, customisation and support of softwares for treasury operations of its investment functions,” SBI Life said. The insurer proposes to implement an integrated system solution for taking care of the entire gamut of activities of front-office, mid office and back office functions, it said.

The activities involve critical factors like effectively managing the portfolios in debt, equity, money market and hybrid securities, and calculation of NAV on a daily and timely basis through the system and capture all types of corporate action monetary, non monetary, it said. The last date for submission of non-binding EoI is January 28.

The company’s total premium income is expected to touch Rs 7,000 crore for 2007-08, compared to Rs 2,900 crore in the preceding fiscal. Life Insurance with a paid-up capital of Rs 600 crore is a joint venture between the State Bank of India and Cardif SA of France.  

India and China had to work together to create a level economic playing field by addressing issues like non-tariff barriers, IPR protection and market related exchange rates, Prime Minister Manmohan Singh stressed on Monday, 14 January. Addressing an India-China economic, trade and investment “summit” meeting, the Prime Minister said the challenge was to diversify India’s export trade basket to China.

“I would like to assure this gathering ‘that both governments will work together to put in place an enabling environment for greater trade, investment and economic interaction,” he promised.

India’s trade deficit with China was about $10 billion in 2007, in which total trade was worth $38.7 billion. India was China’s tenth largest trading partner and China was India’s second largest.

“In addition to our competitive manufacturing industries, India has a diversified agricultural production base. Our food processing industry is also growing rapidly and we can supply quality agricultural and marine products to the Chinese market. A conducive environment should be created for this trade to expand,” the Prime Minister said.

Pointing out that the services sector accounted for more than 50 per cent of India’s GDP and over 40 per cent of China’s, Singh informed the massive gathering of Chinese businesspersons that India had had considerable success in positioning itself in high-tech services in world markets.

“There are enormous opportunities for both India and China to expand trade in services, particularly in construction and engineering, education, entertainment, financial services, IT and IT-enabled services, transport, tourism and health,” he felt.

Singh said India would work with the Chinese government to “remove administrative barriers and simplify regulatory regimes” to move forward in these areas. Touching on the theme of India-China competition, Singh said that all countries had to compete in global markets and such competition was not inconsistent with cooperation, nor was it adversarial.

“Economic cooperation between India and China has become a principal diver of our strategic and cooperative partnership for peace and prosperity…India and China working together should develop a habit of mutually advantageous cooperation,” the Prime Minister maintained.

Reliance Power’s IPO, the largest so far in the Indian markets, opened for subscription from 15-Jan-08 to 18-Jan- 08. The company aims to raise up to Rs 11,700 crore. Under the IPO, 26 crore shares in a price band of Rs 405-450 is on offer to the public. Thirty per cent of the shares on offer have been reserved for retail investors. Investors can apply for lot sizes in the multiples of 15 shares. Investors in the retail category can choose from two payment options. Under the part payment option, retail investors can pay at the rate of Rs 115 per share and apply for up to 225 shares. Alternatively, they may invest at cut -off by paying the full amount for up to 225 shares.

It is still not clear if investors’ option for the part payment option will be able to benefit from listing gains. According to analysts, investors making part payment may be allotted shares only if the retail portion of the issue is subscribed between four to six times at cut-off price. If the retail portion barely scrapes through, then investors will have to pay the entire amount before the shares are credited to their demat accounts. The process will then take up to 40 days so investors will not be able to sell on listing day.

The grey market expects listing at around Rs 900 per share. Analysts have advised long-term investors not to apply for this IPO since the company is expected to show earnings only from 2010.

Retail as well institutional investor interest is very high for the Rs 10,260 crore Initial Public Offering (IPO) of Reliance Power, which opens for subscription on 15 January 2008.

“I am applying for the Reliance Power IPO to the fullest limit allowed to retail investors. It is a Reliance company and a sure bet,” said an investor who wished not to be named. The brand Reliance and Ambani is what is creating the frenzy and investors are not keen on looking at the fundamentals or finer details of the issue.

The grey market premium for the IPO is at Rs 450-500 and market men hope for a listing price of Rs 950-1,000. Brokerages are flooded with investor queries on loan facilities for subscribing to the biggest IPO in the country, and at the retail level there is a marketing drive that has not been witnessed in the recent past.

Market experts say the issue is overpriced, as Reliance Power will start earning only after its first generation unit -phase I of the 600 MW Rosa Power project in Uttar Pradesh - goes on stream by December 2009. Until then, at zero earnings, the stock, no matter at what price, will be trading at an effective price-to-earnings multiple (P/E) of infinity.

National Thermal Power Corporation is the least valued stock in the power pack at a P/E of 30.94.  Reliance Energy is trading at a PE of 65 and Tata Power at 60.26. However; the Reliance Power IPO may be a story similar to that of Reliance Petroleum, which hovered at low levels after issue and started rallying recently. Though the issue is overpriced, it still may well be of the kind to sell on listing day to exit with substantial gains.

The Market is displaying all the classic signs of a post sell-off syndrome. A v-shaped relief rally; spikes in volatility; retest of lower levels, low trading volumes and aversion to mid- and small-caps. This is exactly what you would have expected to see. These patterns call for a different tactical approach on part of investors.

In a market that has clearly not stabilised yet, traders should either refrain from trading or cut down their trade sizes drastically. Equally; if they have to trade they should be extremely nimble and book small gains whenever they get them. This is not the time to be greedy. Compulsive traders should avoid positional trades and trade with narrow stop losses so that they can minimize losses if the market turns against them, which is quite likely. This market could indeed be a trader’s graveyard with the Nifty gyrating wildly between a big band of, say; 4,500-5,400. It is not easy to trade mid-caps either: many stock futures that started the day 8 per cent up ended between 6 and 8 per cent down. Very tough to gauge and catch these swings, they happen so fast.

For investors with cash, this is a good time. However, they should be in no hurry. Someone who bought in the early half of Thursday would be regretting it as by the second half many stocks were trading 10 per cent below their morning peaks. In these conditions, one should try and time the market a bit. While large-cap names should outperform in the foreseeable future, investors looking .beyond the next few months must look at some high-quality mid-caps from the stock futures segment where the erosion has been undeservedly large. They may not recover immediately but poor technicals have driven them to deep value zones. There is an opportunity there if one can be patient.

 It is going to be an interesting few days ahead with global market volatility; meetings next week for the US Fed and RBI loaded with expectations and the prospect of a substantial amount of locked-up funds returning to the hands of institutional investors. All are the ingredients of a potboiler.