Palaniappan Chidambaram, former Union Minister of Finance, Harvard Business School alumnus, and currently under the microscope of the Enforcement Directorate in the INX Media moneylaundering case, took some time out to talk about the state of the Indian Economy. What Chidambaram’s views are; what the latest numbers in GDP growth indicate; is the Indian economy on the path of recovery post the twin blows of demonetization and GST; and what does GDP growth mean to the layperson that is you and me – these are the questions we are addressing on our Story of the Day. My name is Seetal, and you are listening to Moneycontrol.

P. Chidambaram’s Views on the Current Indian Economy

Former Union Minister of Finance, P. Chidambaram, speaking at an event organized by the Maharashtra Congress Unit in Thane, compared the Indian economy under PM Narendra Modi to every motorist’s nightmare – a car with three of its tyres punctured.

The Nifty50 is expected to open lower on Tuesday following muted trend seen in other Asian markets. The index closed 67 points lower at 10,628 on Monday.

Trends on SGX Nifty indicate a negative opening for the broader index in India, a fall of 20.5 points or 0.19 percent. Nifty futures were trading around 10,593-level on the Singaporean Exchange.

Wall Street’s three major indexes rose on Monday, led by a rally in tech stocks, pushing the Nasdaq to a record closing high as investors bet on a continuation of strong economic growth, while falling oil prices weighed on the energy sector, said a Reuters report.

Asian stocks dipped on Tuesday as the markets took a breather after the previous day’s rally, although tech-inspired Wall Street gains helped limit the losses, with investor focus moving away from trade concerns and back to benign economic fundamentals, it said.

Moneycontrol News

The Nifty50 is expected to open higher on Monday following positive trend seen in other Asian markets. The index closed 39 points higher at 10,696 on Friday.

Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 44 points or 0.41 percent. Nifty futures were trading around 10,723.50- level on the Singaporean Exchange.

Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the US economy and geopolitical tensions eased, said a Reuters report.

Asian shares edged up on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower, it said. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent while Japan’s Nikkei rose 1.0 percent.

Foreign investors pulled out a massive Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices.

Bodal Chemical Ltd: Buy | Target: Rs 161 | Stop-loss: Rs 132 | Return 12%

Bodal Chemical witnessed a sharp correction in the last six-month from Rs 172 levels towards Rs 114-111 zone where it formed two consecutive bottom trend-channel which indicated a strong support.

Recently, it witnessed a strong upward momentum where it made two higher peaks after breaching its 20-days EMA level placed at Rs 135 levels.

Substantially, the scrip also witnessed a strong volume growth on the weekly basis and formed a bullish candlestick pattern on the weekly price chart with about 13 percent gain in same period despite closing lower on Friday.

The weekly RSI level up at 55 coupled with positive divergence on MACD which indicates a buying regime at the current level.

The scrip has a support placed at Rs 114 levels and resistance level at Rs 172\. We have a buy recommendation for Bodal Chemicals which is currently trading at Rs. 143.60

KPIT Technologies Ltd: Buy | Target: Rs 303 | Stop-loss: Rs 273 | Return 6%

KPIT Technologies continued to trade on positive trajectory throughout the week despite a weak market breath and managed to breakout from crucial moving average level placed at 267\.

Although the stock witnessed a minor correction to trade below Rs 247 levels but made a strong rebound to make the fresh higher peak. The scrip also witnessed a sharp volume buildup indicating a sustained trend.

The scrip formed a solid bullish candlestick pattern on its weekly price chart indicating upward momentum. Further, a secondary momentum indicator witnessed a revival with weekly RSI level continuing in buying zone coupled with a positive cue on MACD.

The support level for scrip is currently placed at 262 and resistance level at Rs 315\. We have a Buy recommendation for KPIT Technologies which is currently trading at Rs 285.75

Rain Industries Ltd: Sell | Target: Rs 213 | Stop-loss: Rs 243 | Return 4%

Rain Industries continued to remain under pressure over a month although it marginally gained upward momentum but failed to carry forward slipped below its crucial support level at the lower bottom.

The scrip broke below an important moving average level of 50-days placed at Rs 276 and continued to consolidate on volume front.

The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.

Further, the secondary momentum indicator continued to indicate negative signal with RSI slipping below last week’s zone coupled with the bearish outlook from MACD trend.

The scrip is facing a resistance at 296 levels and immediate support from 100-days EMA at Rs 210 levels. We have a SELL recommendation for Rain Industries which is currently trading at Rs 222.70

Disclaimer: The author is Founder & CEO, 5nance.com. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

On these MoneyControl podcasts, every week, we have been talking to you about stories of business empires that grew around the tumult of pre-independence India and then went on to define and shape entrepreneurial dreams in modern India.

Today we bring to you the story of a company that grew along with the Indian republic and over the years has adapted to changing economic climates to become a true-blue Indian conglomerate.

We are talking about the House of Mahindras but before we get to their origins, let us share a news that you may have read recently. Anand Mahindra, the Chairman and Managing Director of Mahindra & Mahindra, said this about the impending sale of Air India, " it is time to turn a crisis into opportunity. " What he meant was that with some astute thinking, the once vibrant brand could be given a new life. He also suggested that a sale be made, but only after a turnaround and also opined that the appointment of an autonomous government official as chairman and CEO will help rejuvenate the Maharajah. "A complete insulation from political pressure" , he said was the key to this revival.

The S&P BSE Sensex slipped over 200 points on Monday to close marginally above its crucial psychological support placed at 35,000 while the Nifty50 reversed gains after hitting a high of 10,770 to end above 10,600 levels.

A large part of the fall was led by banking pack which came under pressure on expectations of a rate hike in the June policy meeting. The outcome of the policy meeting will be announced on 6 June.

An RBI staff study showed every 100 bps increase in borrowing costs lowers the investment rate by as much as 91 bps.

A Reuters poll before the January-March growth data showed that 40 percent of nearly 60 respondents saw a rate hike on Wednesday, while nearly 70 percent of 44 projected that in August - a sharp contrast to an April survey seeing an increase only in 2019's second half.

The anticipated increase could put a dent in growth, which has recovered after blows from the November 2016 demonetisation, the report added. The key concern of the central bank, which has long kept the repo rate at 6 percent, is the inflation rate, which is widely expected to climb further.

Nifty Bank lost 435 points or 1.63 percent to close at 26,257.55 weighed down by losses in Bank of Baroda, IDFC Bank, HDFC Bank, Federal Bank, SBI, Kotak Mahindra and ICICI Bank.

The S&P BSE Sensex closed 215.37 points lower at 35,011.89 while the Nifty5o ended 67.70 points down at 10,628.50.

On the sectoral front, the S&P BSE IT index rose 0.43 percent, followed by the S&P BSE metal index which gained 0.23 percent.

The S&P BSE Realty index slipped 3.2 percent, followed by the S&P BSE Power index which was down 2.3 percent, and the S&P BSE Telecom index closed 1.95 percent lower.

The S&P BSE Midcap index slipped 2 percent, while the S&P BSE Midcap index closed 0.82 percent down.

Top Sensex gainers include names like Dr Reddy’s Laboratories (up 2.8 percent), Infosys (up 1.5 percent), M&M (up 1.4 percent), Tata Steel (up 1.1 percent), and TCS (up 0.7 percent).

Top Sensex losers include names like HDFC Bank (down 2.9 percent), Bharti Airtel (down 2.8 percent), Adani Ports (down 2.4 percent), Power Grid (down 2.06 percent), and HUL (down 1.7 percent).

The S&P BSE Sensex slipped over 200 points on Monday to close marginally above its crucial psychological support placed at 35,000 while the Nifty50 reversed gains after hitting a high of 10,770 to end above 10,600 levels.

A large part of the fall was led by banking pack which came under pressure on expectations of a rate hike in the June policy meeting. The outcome of the policy meeting will be announced on 6 June.

An RBI staff study showed every 100 bps increase in borrowing costs lowers the investment rate by as much as 91 bps.

A Reuters poll before the January-March growth data showed that 40 percent of nearly 60 respondents saw a rate hike on Wednesday, while nearly 70 percent of 44 projected that in August - a sharp contrast to an April survey seeing an increase only in 2019's second half.

The anticipated increase could put a dent in growth, which has recovered after blows from the November 2016 demonetisation, the report added. The key concern of the central bank, which has long kept the repo rate at 6 percent, is the inflation rate, which is widely expected to climb further.

Nifty Bank lost 435 points or 1.63 percent to close at 26,257.55 weighed down by losses in Bank of Baroda, IDFC Bank, HDFC Bank, Federal Bank, SBI, Kotak Mahindra and ICICI Bank.

The S&P BSE Sensex closed 215.37 points lower at 35,011.89 while the Nifty5o ended 67.70 points down at 10,628.50.

On the sectoral front, the S&P BSE IT index rose 0.43 percent, followed by the S&P BSE metal index which gained 0.23 percent.

The S&P BSE Realty index slipped 3.2 percent, followed by the S&P BSE Power index which was down 2.3 percent, and the S&P BSE Telecom index closed 1.95 percent lower.

The S&P BSE Midcap index slipped 2 percent, while the S&P BSE Midcap index closed 0.82 percent down.

Top Sensex gainers include names like Dr Reddy’s Laboratories (up 2.8 percent), Infosys (up 1.5 percent), M&M (up 1.4 percent), Tata Steel (up 1.1 percent), and TCS (up 0.7 percent).

Top Sensex losers include names like HDFC Bank (down 2.9 percent), Bharti Airtel (down 2.8 percent), Adani Ports (down 2.4 percent), Power Grid (down 2.06 percent), and HUL (down 1.7 percent).

On these MoneyControl podcasts, every week, we have been talking to you about stories of business empires that grew around the tumult of pre-independence India and then went on to define and shape entrepreneurial dreams in modern India.

Today we bring to you the story of a company that grew along with the Indian republic and over the years has adapted to changing economic climates to become a true-blue Indian conglomerate.

We are talking about the House of Mahindras but before we get to their origins, let us share a news that you may have read recently. Anand Mahindra, the Chairman and Managing Director of Mahindra & Mahindra, said this about the impending sale of Air India, " it is time to turn a crisis into opportunity. " What he meant was that with some astute thinking, the once vibrant brand could be given a new life. He also suggested that a sale be made, but only after a turnaround and also opined that the appointment of an autonomous government official as chairman and CEO will help rejuvenate the Maharajah. "A complete insulation from political pressure" , he said was the key to this revival.

Moneycontrol News

The Nifty50 is expected to open higher on Monday following positive trend seen in other Asian markets. The index closed 39 points higher at 10,696 on Friday.

Trends on SGX Nifty indicate a positive opening for the broader index in India, a gain of 44 points or 0.41 percent. Nifty futures were trading around 10,723.50- level on the Singaporean Exchange.

Wall Street stocks rose on Friday after the latest monthly jobs report pointed to strength in the US economy and geopolitical tensions eased, said a Reuters report.

Asian shares edged up on Monday as strong US jobs data offset worries that tariff wars between the United States and the rest of the world could drag global economic growth lower, it said. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent while Japan’s Nikkei rose 1.0 percent.

Foreign investors pulled out a massive Rs 29,714 crore from the capital markets in May, making it the biggest outflow in 18 months, primarily due to a surge in global crude prices.

Bodal Chemical Ltd: Buy | Target: Rs 161 | Stop-loss: Rs 132 | Return 12%

Bodal Chemical witnessed a sharp correction in the last six-month from Rs 172 levels towards Rs 114-111 zone where it formed two consecutive bottom trend-channel which indicated a strong support.

Recently, it witnessed a strong upward momentum where it made two higher peaks after breaching its 20-days EMA level placed at Rs 135 levels.

Substantially, the scrip also witnessed a strong volume growth on the weekly basis and formed a bullish candlestick pattern on the weekly price chart with about 13 percent gain in same period despite closing lower on Friday.

The weekly RSI level up at 55 coupled with positive divergence on MACD which indicates a buying regime at the current level.

The scrip has a support placed at Rs 114 levels and resistance level at Rs 172\. We have a buy recommendation for Bodal Chemicals which is currently trading at Rs. 143.60

KPIT Technologies Ltd: Buy | Target: Rs 303 | Stop-loss: Rs 273 | Return 6%

KPIT Technologies continued to trade on positive trajectory throughout the week despite a weak market breath and managed to breakout from crucial moving average level placed at 267\.

Although the stock witnessed a minor correction to trade below Rs 247 levels but made a strong rebound to make the fresh higher peak. The scrip also witnessed a sharp volume buildup indicating a sustained trend.

The scrip formed a solid bullish candlestick pattern on its weekly price chart indicating upward momentum. Further, a secondary momentum indicator witnessed a revival with weekly RSI level continuing in buying zone coupled with a positive cue on MACD.

The support level for scrip is currently placed at 262 and resistance level at Rs 315\. We have a Buy recommendation for KPIT Technologies which is currently trading at Rs 285.75

Rain Industries Ltd: Sell | Target: Rs 213 | Stop-loss: Rs 243 | Return 4%

Rain Industries continued to remain under pressure over a month although it marginally gained upward momentum but failed to carry forward slipped below its crucial support level at the lower bottom.

The scrip broke below an important moving average level of 50-days placed at Rs 276 and continued to consolidate on volume front.

The scrip formed a solid bearish candlestick pattern on its weekly price chart after breaching below important level indicating a sustained pressure.

Further, the secondary momentum indicator continued to indicate negative signal with RSI slipping below last week’s zone coupled with the bearish outlook from MACD trend.

The scrip is facing a resistance at 296 levels and immediate support from 100-days EMA at Rs 210 levels. We have a SELL recommendation for Rain Industries which is currently trading at Rs 222.70

Disclaimer: The author is Founder & CEO, 5nance.com. The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.