Daily News (In Short)-24-August-2015

#* Sensex Tanks 1,200 Points in 4th Biggest Crash in History: 10 Developments

The BSE Sensex fell over 1,200 points, or over 4 per cent, on Monday - its fourth biggest crash in history in terms of absolute value. The rupee also came under pressure; it slumped over 1 per cent to hit a fresh two-year low of 66.67 per dollar.

Here's your 10-point cheat-sheet to the story

1) The Sensex crashed over 1,200 points to 26,155, while the 50-share Nifty slipped below the crucial 8,000 levels for the first time in two months. All 50 shares in the Nifty traded in the red, while on the broader BSE 500 index, just  five stocks traded higher.

2) The rupee has weakened from 64 per dollar to nearly 66.67, a fall of over 4 per cent since August 11 when China announced the devaluation of its yuan currency.

3) Reserve Bank of India Governor Raghuram Rajan on Monday said that India is better off than among emerging market countries. The macro-economic problems are under control, low inflation will give investors trust in markets, he said.

4) To soothe investor sentiments, Dr Rajan said the central bank will not hesitate to use reserves to reduce the volatility in currency. (Also read: As Rupee Sinks to 66.67, Raghuram Rajan Promises RBI Will Intervene)

5) The trigger for Monday's carnage is the rout in Chinese equities. Shanghai shares dived nearly 9 per cent - their biggest single-day percentage loss since 2007 - wiping out their gains for the year.

6) The selloff in China markets weighted on risk assets across the globe. Asian stocks dived to 3-year lows while European markets were down nearly 3 per cent in early trade. Copper, seen as a barometer of global demand, tumbled to 6-1/2-year lows as the anxiety over China sapped investor confidence. (Read: Chinese Shares Plunge Nearly 9%)

7) This the third straight day of big selloff in Indian stock markets. The widespread unrest in markets was set in motion nearly two weeks ago when China sharply devalued the yuan and stoked concerns about the state of its economy. There are fears that China could be forced to devalue the yuan even more should its economy falter further.

8) The devaluation in the yuan has impacted most emerging market currencies and stoked fears about a currency war. South Africa's rand struggled at 14-year lows, the Turkish lira languished near a record low, while the Malaysian ringgit hit a 17-year low.

9) The depreciation in the rupee hits foreign investors and diminishes their returns. Analysts say foreign funds have started selling shares aggressively because of the rupee fall. On Friday they sold shares worth Rs 2,340 crore, which is the biggest selling since April 2015.

10) Domestic markets are also likely to face liquidity issues because of the 10 per cent stake sale in state-run refiner Indian Oil Corp. The floor price for the share sale is Rs 387, a 2 per cent discount from Friday's close. At the floor price, the 10 per cent stake sale in the company will bring in Rs 9,396 crore for the government. According to the latest data, the Indian Oil offer for sale (OFS) was subscribed 57 per cent.

#* As Sensex crashes, Rajan says Indian economy better off than others

The Reserve Bank of India will not hesistate to use the country’s ample foreign exchange reserves to stabilize the rupee which has recently seen an adverse impact of the depreciation in the Chinese yuan, governor Raghuram Rajan said on Monday.

“We have close to $380 billion in forex reserves. We will have no hesitation to use our forex reserves to reduce the volatility in the market.” Rajan said at a meeting organized by Ficci.

The governor also hinted at lower rates, saying the RBI will look at emerging room for more accommodation on the back of lower commodity prices, astute food management by the government and strong anti-inflation policy stance of the central bank.

"Falling commodity prices and astute food management by the government should help RBI (lower rates)," said Rajan. He also said he sees oil prices remaining at low levels at for a year or two.

He, however said rupee has strengthened against yen and euro, and RBI has resources to deal with rupee volatility.

The rupee, under stress from importers clamouring for dollars to meet debt payments has been weakened by the nervousness among global investors who have been buying up the dollar to make good their losses in emerging markets. Earlier on Monday, all markets in Asia – forex and equities- saw a major rout on fears that the slowdown in the Chinese economy is much worse than expected.

Feeble attempts by the Chinese government to prop up the securities market had little impact. The Chinese government allowed the country’s pension funds to invest in the stock market for the first time, in a bid to infuse fresh liquidity and to try and assuage concerns.

Rajan said that turmoil in currency market has been long-coming and China is only the last step in it.

In its biggest intra-day crash this year, the market benchmark Sensex plunged by 1,006 points while Nifty fell below 8,000 level in early trade due to heavy selling by funds amid global sell-off as worries about China's economy deepen.

Asian markets were also in deep red with Shanghai shares crashing 8% on concerns that the Chinese economy was slowing more than previously thought. Taking cues from global markets, the Sensex nosedived 1,006.54 points, or 3.67%, to 26,359.53-- the biggest fall in day trade in 2015. The broader Nifty also dipped below the 8,000-level by tumbling 309.05 points, or 3.72% to 7990.90 in early trade. All 50 constituents of Nifty are in red with Tata Motors and ONGC losing the most up to 6%.

Brokers said sentiments suffered a jolt following a sell-off in other Asian markets with over 8% plunge in Shanghai index.

Meanwhile, crude prices fell after slipping below $40 barrel for the first time in six years after weak Chinese manufacturing data.

#* Japan PM Shinzo Abe to skip World War II anniversary events in China

Japanese Prime Minister Shinzo Abe will not attend events to mark the 70th anniversary of the end of World War II in China next month, Japan's government spokesman said on Monday, amid concerns over China's military ambitions.

More than 10,000 troops - mostly Chinese but with contingents from Russia, Mongolia and a few other countries - will march through central Beijing on September 3 in a parade that will be the highlight of events marking the war's end. Abe has tried to improve relations with China, but progress has been very slow due to Japan's perceived failure to atone for its wartime aggressions and China's increasingly assertive tone in territorial disputes in the South and East China Seas.

"The prime minister has decided not to attend because of his schedule in parliament," Chief Cabinet Secretary Yoshihide Suga said. "He will not be travelling to China shortly before or after September 3. We will continue to seek out ways for our two countries to communicate with each other." China's Foreign Ministry did not immediately respond to a request for comment.

Earlier on Monday national broadcaster NHK said Abe would skip the ceremony in China to focus on collective self defence bills currently being debated in parliament. He also decided to side with Western leaders who are staying away from the military parade in China because of worries about its military expansion in the region, the Sankei newspaper reported earlier on Monday.

European and US officials have expressed concern that the show of military power could send the wrong signal in an already tense region. Tanks rumbled through Beijing and fighter jets flew overhead during the weekend in a parade rehearsal.

China has drawn criticism for reclaiming land in the disputed South China Sea, as neighbouring countries fear China could use the land as a military base. China and Japan also dispute islets in the East China Sea. Sino-Japan relations have long been affected by what China sees as Japan's failure to atone for its occupation of parts of the country before and during the war. Western and Chinese historians estimate millions of Chinese civilians were killed.

Ties have thawed slightly since Abe and Chinese President Xi Jinping met at multilateral gatherings in April and last November, but the diplomatic relationship between Asia's two biggest economic powers is far from friendly. "Seventy years ago we relied on the unity and patriotism of the Chinese people to defeat the Japanese fascist invaders, and today we rely on this same spirit to oppose the Japanese rightists' plots to beautify the history of invasion," the Study Times, an influential Communist Party newspaper, said on Monday.

#* “You expect we’ll play cricket with you?”: BCCI secretary mocks idea of Pak-India Cricket

Board of Control for Cricket in India (BCCI) secretary, Anurag Thakur, has said that the Indian cricket team will not play any series with Pakistan till relations stabilise.

A report on Indian NDTV cited the allegations that Pakistan was “giving sheter” to Dawood Ibrahim and displeasure on Pakistan’s desired meetings with Kashmiri leaders, as reasons fr the secretary’s statement. The allegation that Pakistan is sheltering one of India’s most wanted fugitives in provincial capital Karachi is one that has been raised repeatedly.

Pakistan routinely denies said charges.

Dawood Ibrahim, who is the alleged mastermind behind the Mumbai serial bomb blasts of 1993 stands convicted in absentia in India.

Thakur, a Member of Parliament from India’s ruling Bharatiya Janata Party (BJP) mocked Pakistan’s wish to play cricket with its Indian neighbor. The two rivals, who were scheduled to play a series in the UAE, may not get the chance to do so in light of Thakur’s statement. The two countries haven’t played a bilateral Test series since 2007.

#* Indian Railways Dips Into The Nirbhaya Fund, Will Use 700 Crs To Install 20,000 CCTVs In Trains!

To strengthen security on trains, Indian Railways is expediting the process of installing CCTV surveillance cameras in 20,000 coaches at a cost of Rs 700 crore, which will be derived from Nirbhaya fund. "It has been decided in a recent meeting held at the PMO to speed up certain projects which include works on new lines, construction of rail overbridges and underbridges, improving passenger convenience, and safety and security...," a senior railway ministry official, who was present in the meeting, said.

Though railways has plans to install CCTV cameras in a maximum number of trains, not many barring a few suburban services could be equipped with surveillance cameras so far.The official said as per the plan, installation of CCTV cameras as a security measure is a priority, and the railways is coordinating with the women and child development ministry for immediate release of Nirbhaya fund for the purpose.

Nirbhaya fund was created in 2013, after the brutal gang rape incident in the national capital in December 2012, to support initiatives by government and NGOs working towards protecting the dignity and ensuring safety of women. The fund has a total of about Rs 3,000 crore and the WCD ministry is the nodal ministry.
Recently, an AC 3-tier coach manufactured at Chennai's Integrated Coach Factory rolled out with CCTV camera facility. There are about 11,000 trains running daily, of which only a few selected are being provided with security escort service. About 1,300 trains are escorted by RPF while GRP is involved in escorting 2,200 trains. CCTV cameras will be installed in ladies compartments as well as general compartments, said the official.

#* Flipkart’s strategic brands chief Vora quits

Ravi Vora, former marketing head who was serving as chief executive officer of Flipkart’s Strategic Brands Group, has moved on from the company.

The development was first reported by Medianama.

A spokesperson for the country’s largest e-commerce company confirmed the departure. Flipkart has not announced a replacement for Vora yet. Vora could not be immediately reached for a comment.

Vora, who was with Flipkart for over four years, was in-charge of the Strategic Brands Group since January this year. Prior to Flipkart, he worked with MJ Heinz, Olam International and Unilever.

On his LinkedIn profile, Vora describes the Strategic Brands Group as a ‘startup within a startup’. Vora was the company’s senior vice president for marketing earlier.

Flipkart’s branded goods business consists of three private labels: Citron (home appliances and personal health care), Flippd (apparels) and Digiflip (consumer electronics). Last November, the company’s private labels portfolio, along with Vora’s marketing role, came under Myntra CEO Mukesh Bansal as part of an organisational overhaul.

Vora was then given the responsibility of building new in-house brands for the company.

Flipkart has seen few senior level exits in the recent past while it continues to hunt for seasoned professionals for top positions. Amod Malviya, chief technology officer of Flipkart, quit his full-time position with the company in July to be a part of its newly created advisory board. Sameer Nigam, who headed engineering, also resigned from the Bangalore-based company.

Meanwhile, Flipkart hired two Silicon Valley expatriates, namely Eric Lange (former vice president of Yahoo’s analytics wing) and Dan Rawson (ex- general manager at Amazon’s fulfilment business). In March, Google’s former product management executive joined Flipkart as chief product officer.

Flipkart-owned lifestyle e-commerce venture Myntra Designs Pvt Ltd, a company co-founded by Mukesh Bansal, appointed former Google executive Ambarish Kenghe as its senior vice president and product head.

Flipkart also appointed IT industry veteran Ravi Garikipati in a newly created position – entrepreneur in residence. In April, it roped in Hari Vasudev (Yahoo), Anand KV (Hathway) and Manish Maheshwari (txtWeb), to spearhead supply chain, customer experience and seller ecosystem verticals, respectively. Earlier, the firm had named Saikiran Krishnamurthy from McKinsey as the chief operating officer (COO) of its commerce division.

The organisation also re-jigged its top team with Sachin Bansal now looking after new initiatives and strategy. Binny Bansal is heading supply chain and logistics while Mukesh Bansal has been heading the day-to-day operations.

#* Pak a nuclear power, we know how to defend ourselves: Sartaj Aziz

Pakistan’s National Security Advisor Sartaj Aziz has accused “Modi’s India” of acting like a regional superpower and said his nuclear-armed country was capable of defending itself.
 
Aziz’s comments came after the proposed talks with his Indian counterpart, scheduled for Monday, collapsed over New Delhi’s objection to the Pakistani NSA’s invitation to Hurriyat leaders for a breakfast meeting.
 
India has accused Pakistan of going beyond the framework for talks agreed upon by the Prime Ministers of the two countries Narendra Modi and Nawaz Sharif during their meeting in the Russian city of Ufa last month.
 
“Modi’s India acts as if they are a regional superpower, we are a nuclear-armed country and we know how to defend ourselves,” Aziz was quoted as saying by the Dawn newspaper. 
 
“India should realise after the current episode that their tactics are not working, and they need to be sincere about dialogue with Pakistan.”
 
He also asked India to hold a referendum in “occupied Kashmir” and the people would decide their own fate.
 
Aziz also said that while Pakistan has evidence of India’s involvement in terrorism in his country, New Delhi has just propaganda against Pakistan. 
 
“Propaganda against Pakistan is more important for the Indians, rather than giving us evidence,” Aziz, who is also the adviser to the Prime Minister on foreign affairs, was quoted as saying in the report.
 
‘Sabotaging talk’
 
Pakistani defence minister Khawaja Muhammad Asif, on the other hand, accused India of "sabotaging" the NSA-level talks last week with a "fanatic approach" while showing a "negative attitude" aimed at disrupting peace in the sub-continent, a PTI report said.
 
Asif was quoted by the state-run Radio Pakistan as saying that the "negative attitude of Modi government was to disrupt peace in the region”.
 
He added, "India sabotaged the Pak-India talks scheduled to be held in New Delhi today due to its fanatic approach".
 
He said Pakistan was “serious” in conducting talks with India since that is the “best way to resolve bilateral issues”.

#* Louis Berger case: Special court rejects Churchill Alemao's bail plea

A special court on Monday rejected former Goa PWD Minister Churchill Alemao's bail plea in connection with the Louis Berger case.

While refusing the bail, the court did not pronounce the detailed verdict, which is likely to be uploaded on the court's website later in the day.

Earlier, a local court had on Monday rejected the bail of Alemao's bail. Alemao was arrested on the night of August 5 by the state Crime Branch.

He was the state PWD minister when officials of the US-based company Louis Berger allegedly paid bribes to win consultancy for water augmentation and sewerage pipeline project under Japan International Cooperation Agency (JICA).

He was arrested under various sections of Prevention of Corruption Act and 120 (B) of the Indian Penal Code, police had earlier said.

Alemao, however, had maintained that the allegations were politically motivated.

Apart from Alemao, three others - former vice president of Louis Berger Satyakam Mohanty, head of JICA-aided project in Goa Anand Wachasunder and alleged hawala dealer Raychand Soni - were earlier arrested by the police in connection with the bribery scandal. Former state Chief Minister Digambar Kamat was also questioned twice by the investigators in connection with the case.

#* Jayalalithaa asks party cadre to end protests

AIADMK general secretary and Chief Minister Jayalalithaa on Sunday appealed to party workers to end their protests against TNCC president E.V.K.S. Elangovan for his “uncivilised” and “derogatory” remarks over her luncheon meeting with Prime Minister Narendra Modi at her Poes Garden residence in Chennai on August 7.

“Fourth grade” comments

In a statement, Ms. Jayalalithaa condemned the TNCC chief for his “obscene” comment at the demonstration by the Congress party in Chennai on August 14 and pointed out that it was in response to such “fourth grade” comments her partymen had risen in revolt and organised “peaceful agitations’ across the State demanding his unconditional apology.

Recalling an incident in 2014 when the Sri Lankan Defence Ministry website contained derogatory remarks about her over the practice of writing to the Prime Minister on the fishermen’s issue, Ms. Jayalalithaa said that all political parties, including the Congress had condemned it.

Subsequently, the comments were removed from the site and an apology was also issued by the Sri Lankan government.

“The comments by Elangovan on my meeting with the Prime Minister are much worse,” she said. Some parties supporting him and some other parties remaining silent only exposed their political opportunism, she charged.

After realising that the AIADMK’s protests were justified, Mr. Elangovan had subsequently clarified that his comments were misunderstood which only showed that he was indirectly admitting his fault, Ms. Jayalalithaa said. Knowing well the pain in the hearts for partymen because of which they undertook the protests across the State, the AIADMK supremo asked her partymen to give up the protests as they had already expressed their anguish.

#* ISIS blows up ancient temple of Baal Shamin in Palmyra

Islamic State militants have blown up the ancient temple of Baal Shamin in the Syrian city of Palmyra, the latest in a series of cultural relics to be destroyed by the jihadist group.

Palmyra was seized from government forces in May, fuelling fears the IS extremists might destroy its priceless heritage, as it has done in other parts of Syria and Iraq.

“Da’ish placed a large quantity of explosives in the temple of Baal Shamin today and then blew it up causing much damage to the temple,” Syria’s antiquities chief Maamoun Abdulkarim said.

“The cella (inner area of the temple) was destroyed and the columns around collapsed.” The Syrian Observatory for Human Rights, a Britain-based group that monitors the country’s civil war, confirmed the destruction of the temple.

Baal Shamin was built in 17AD, and was expanded under the reign of Roman emperor Hadrian in 130AD.

Known as the “Pearl of the desert”, Palmyra, which means City of Palms, is a well-preserved oasis 210 kilometres northeast of Damascus.

Its name first appeared on a tablet in the 19th century BC as a stopping point for caravans travelling on the Silk Road and between the Gulf and the Mediterranean.

But it was during the Roman Empire — beginning in the first century BC and lasting another 400 years — that Palmyra rose to prominence.

IS mined the ancient site in June before destroying the Lion Statue of Athena — a unique piece that stood more than three metres high outside the city’s museum.

Funerary busts were also destroyed by IS in Palmyra.

Islamic State claims statues and grave markers to be idolatrous, and the group has destroyed antiquities and heritage sites in territory under its control in Syria and Iraq. The latest developments come just days after the terror group beheaded the 82-year-old retired chief archeologist of Palmyra. Islamic State has also executed hundreds of people in the city and surrounding area, many of them government employees, and infamously used child members to shoot dead 25 Syrian government soldiers in Palmyra’s ancient amphitheatre.

“Our darkest predictions are unfortunately taking place,” said Abdulkarim.

“(IS) carried out executions in the ancient theatre (of Palmyra), they destroyed in July the famous Lion Statue of Athena ... and transformed the museum into a prison and a courtroom.” AFP

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