S&P 500 closes above 1,800 first time

The stock market brushed past another milestone Friday. The Standard & Poor's 500 index closed above 1,800 for the first time, capping seven straight weeks of gains. The broader index is on track for its best performance in 15 years as a combination of solid corporate earnings, a strengthening economy and easy-money policies from the Federal Reserve draw investors to stocks. Stocks have also gained because they offer an attractive alternative to bonds, where interest rates remain close to all-time lows. "You can't really get better returns other than in the stock market," said Peter Cardillo, chief market economist at Rockwell Global Capital. "It's been a quality run-up in stocks." The S&P 500 index rose 8.91 points, or 0.5 percent, to 1,804.76. The index has advanced 26.5 percent in 2013. If it finishes at that level, it would be its strongest year since a 26.7 percent gain in 1998. The Dow Jones industrial average also continued its upward march after finishing above 16,000 for the first time Thursday. The index gained 54.78 points, or 0.3 percent, to 16,064.77. The Nasdaq composite rose 22.49 points, or 0.6 percent, to 3,991.65. On Friday, health care stocks led the market's rise. Biotechnology company Biogen Idec surged on reports that it won market exclusivity for its top-selling multiple sclerosis drug in Europe. The company's stock jumped $33.19, or 13 percent, to $285.62. Health care stocks have also led gains in the S&P 500 this year, rising 38 percent. The industry is attractive to investors. Some of its companies, including Biogen, offer the possibility of explosive growth.

Bharatiya Mahila Bank

Union Finance Minister P. Chidambaram has given the speech at the inauguration of Bharatiya Mahila Bank in Mumbai. "I am grateful to the Chairperson of the Bharatiya Mahila Bank for the warm welcome. I am happy to add my words of welcome to the Prime Minister, the Chairperson of the UPA, the Governor, the Chief Minister, Shri Sharad Pawar, Farooq Abdullah, Ministers, Members of Parliament and this distinguished gathering. I had asked M.B.N. Rao, former Chairman, Canara Bank, to head a committee to draw the blue print for the Mahila Bank. 

The report was submitted in a record time of two months and, six months later, after working FM said "Empowerment of women is one of the articles of faith of the UPA government. The Bharatiya Mahila Bank is not – I repeat, not – a symbol of empowerment of women. It is the substance of empowerment of women, along with many other measures that the Government has taken and will take in the future. Only 26% of women in India admit to having a bank account. On the other hand, four public sector banks including State Bank of India and several private sector banks have a woman at the head of the Bank, and I am glad many of them are here today. The obvious conclusion is that, despite good intentions, there is deep-seated bias, at the institutional and individual levels, against women. 

Since fewer women than men have bank accounts, fewer women are able to get loans. Per capita credit in the case of women is 80 percent lower than in the case of men. Hence the need for a bank that predominantly serves women – from the self-help groups to the small business women and from the working woman to the high networth individual." "Bank credit is expected to grow at a compounded annual growth rate of 16.5 percent during the twenty year period from 2010 to 2030. That will mean a twenty-fold increase from the level of credit in 2010. 

The deposit base is expected to grow at a compounded annual growth rate of 14.6 percent, that is 14 times the level of deposits in 2010. Assuming that the share of credit for women remains the same – which should not be the case and the share must increase – even at that level total credit to women will grow to Rs. 25 lakh crore. There is, therefore, an opportunity to reach more credit to more women. I am sure the Bharatiya Mahila Bank will seize the opportunity and multiply it manifold.

The government shutdown is over: Obama

On Thursday night, US President Barack Obama signed legislation to reopen our government and pay our bills. 

“Because Democrats and responsible Republicans came together, the first government shutdown in 17 years is now over,” he said on Thursday in the State Dining Room. “The first default in more than 200 years will not happen. These twin threats to our economy have been lifted.”

There was no economic rationale for all this, President Obama said: “Over the past four years, our economy has been growing, our businesses have been creating jobs, and our deficits have been cut in half,” he said, “but nothing has done more to undermine our economy these past three years than the kind of tactics that create these manufactured crises.”

The way business is done in Washington has to change, President Obama said.

Because we’ve all got a lot of work to do on behalf of the American people – and that includes the hard work of regaining their trust. Our system of self-government doesn’t function without it. And now that the government is reopened, and this threat to our economy is removed, all of us need to stop focusing on the lobbyists, and the bloggers, and the talking heads on radio, and the professional activists who profit from conflict, and focus on what the majority of Americans sent us here to do – and that’s grow this economy, create good jobs, strengthen the middle class, lay the foundation for broad-based prosperity, and get our fiscal house in order for the long haul.

President Obama laid out three places where he believes we can make progress right now: Pursuing a budget that grows our economy faster and shrinks our long-term deficits further; fixing our broken immigration system; and passing a farm bill.

“I will look for willing partners wherever I can to get important work done,” President Obama said. “And there's no good reason why we can't govern responsibly, despite our differences, without lurching from manufactured crisis to manufactured crisis.”

Those of us who have the privilege to serve this country have an obligation to do our job as best we can. We come from different parties, but we are Americans first. And that’s why disagreement cannot mean dysfunction. It can't degenerate into hatred. The American people’s hopes and dreams are what matters, not ours. Our obligations are to them. Our regard for them compels us all, Democrats and Republicans, to cooperate, and compromise, and act in the best interests of our nation –- one nation, under God, indivisible with liberty and justice for all.

Sensex closes highest in over 2 years

The BSE Sensex Thursday surged 136 points to breach the psychological 18,000 points level for the first time in two-and-a-half years on the back of good first quarter numbers and easing food inflation, amid positive European cues.
   
A sharp rally in the final hours of trade helped the 30- share barometer of the Bombay Stock Exchange extend gains for the second successive day. The Sensex closed higher by 135.9 points, or 0.76 percent, at 18,113.15, its best closing since February 15, 2008.
   
The wide-based 50-share Nifty index of the National Stock Exchange, too, added 0.79 percent to settle at 5,441.95 points, the highest level in 30 months.
   
Analysts said the Sensex, which was in the negative zone till mid-session, reversed the trend in the final hours of trade as better-than-expected European economic data ignited buying here, pushing the index to a high of 18,127.90, up 150 points.
   
The sentiment on Dalal Street was weak in early trade following a steep overnight fall in US markets. However, it turned bullish after the positive opening of European bourses and the firm start of US futures, market experts said.
   
Investors also responded positively to news that food inflation declined to 12.47 percent for the week ended July 10 from 12.81 percent in the previous week, they said.
   
The rally was led by consumer goods, metal, auto, FMCG and financial stocks. Barring IT, all the other 12 sectoral indices on the BSE ended with gains.
   
"How long people will wait for sideline trading. Good Q1 numbers have boosted the sentiment and today positive European data also helped the market to break the range-bound trade," Geojit BNP Paribas Research Head Alex Mathews said.
   
"I am hopeful that the market will sustain this level and, in fact, will rise further in coming sessions," he added.
   
M&M was the best gainer in the Sensex pack and ended 2.50 percent higher. Other auto stocks were also in demand, with Tata Motors rising 1.78 percent and Hero Honda 0.24 percent.
   
ITC, which today reported a 21.8 percent jump in June quarter profit, rose by 1.64 percent, while Bharti Airtel gained 2.39 percent and Jaiprakash Associates 1.95 percent.
   
Metal stocks rose for the second straight day, with Tata Steel surging 1.94 percent, Sterlite Industries 1.5 percent, Jindal Steel 1.49 percent and Hindalco 0.90 percent.
   
JSW Steel shot up 2.26 percent, after the company said it will consider raising funds.
   
"Our domestic fundamentals are strong and I hope markets will sustain the gains in the near-term," Aneesh Srivastava, the Chief Investment Officer of IDBI Fortis Life Insurance Co, said.
   
In 30-BSE index components, 25 stocks ended with gains, while five ended in the red.

Gold needs an Octopus Paul

For the past couple of years, gold has been acting so unpredictable that investors definitely wanted to have a soothsayer to predict the fate of gold in the coming days. The situation is same now also. Nobody is certain about the ups and downs of the yellow metal.

Now, any investor would love to have an opinion from the World Cup famous octopus Paul of Germany before one puts his/her money on the yellow metal. Octopus Paul has a clean record of predicting the results of all Germany matches and the final of the World Cup Football. Paul has becomes such a famous phenomenon of the World Cup that even Spain, the Cup winner, offered a citizenship to the creature.

So, who wouldn’t want a perfect soothsayer like Paul before investing in gold. The reason for gold’s unpredictability now is that the metal is witnessing many upheavals in the world economy. After the Greece economic tragedy, the gold prices zoomed to record levels. Before that, India’s Reserve Bank bought 200 tonnes of the yellow metal, which resulted in the rise of prices in November 2009. Again, the gold ETF manipulation reports in the US also hit the gold prices.

Now, the Portugal economy’s bad phase is helping gold to rise. But, lack of demand in India and reports that central banks are pawning their gold with BIS dampened the metal a bit.

However, market analysts have been consistent in saying that there is only one way gold prices can move that is up. However, India is a big worry for bullion markets as the Indian buyers are shying away from jewellery shops and bullion market due to the high prices of the metal. Even in China, people are not enthusiastic about buying gold now. So, the dull India and China markets are dragging the gold market now.

Gold eased a touch in Europe on Friday, under pressure from lacklustre investment and jewellary demand over the seasonally soft summer months, with a further outflow from the world’s largest gold ETF undermining sentiment.

Prices remained rangebound, however, supported above $1,200 an ounce by a retreat in risk appetite which pressured equities and the dollar. The precious metal has remained in a narrow $1,195-1,215 range for much of the week, lacking clear direction from other markets and the wider macroeconomic environment.

The market is awaiting clearer signals from the equity, debt and foreign exchange markets, and fresh seasonal demand from India, where key gold-buying festivals will take place next month, for impetus.

Rupee joins elite club...gets its own symbol

The Union Cabinet on July 15 approved the final design for the unique symbol of the Indian rupee. It has given its approval to the numerical representation for the Indian rupee, which is a mix of the Devanagri 'Ra' and Roman 'R'.

This symbol will be used by all individuals/entities within and outside India after its incorporation in `Unicode Standard’, ‘ISO/IEC 10646’ and ‘IS 13194’.

The symbol will standardize the expression for Indian Rupee in different languages, both within and outside the country. It would better distinguish the Indian currency from those countries whose currencies are also designated as Rupee or Rupiah, such as Pakistan, Nepal, Sri Lanka and Indonesia.

The Cabinet had shortlisted five designs for the new Rupee symbol following an all-India contest. IIT post-graduate D. Uday Kumar's entry has been selected out of five shortlisted designs as the new symbol for the Indian Rupee.

Kumar's entry was chosen from among 3,000 designs competing for the Indian currency's symbol. He will get an award of Rs2.5 lakhs.

"The symbol for the Rupee would lend a distinctive character and identity to the currency and further highlight the strength and robustness of the Indian economy as also a favored destination for global investments," said Minister for Information and Broadcasting Ambika Soni in New Delhi.

The new Rupee symbol will be printed or embossed on currency notes or coins, Soni told reporters after the cabinet meeting.

In February's Budget speech, Finance Minister Pranab Mukherjee said that it is proposed to formalize a symbol for the Indian Rupee to appropriately reflect and capture the Indian ethos and culture.

With this, the Indian Rupee will join the select club of currencies such as the US Dollar, British Pound Sterling, Euro and Japanese Yen with clear distinguishing identity.