ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by D P SharmaSubscribe to D P Sharma

Hank Yarn Scheme a Flop

Hank Yarn Scheme a Flop D P Sharma THE outstanding aspect of the cotton scenario emerging with the progress of the current season is that, unlike in the past, price movements in cotton have been guided less by crop estimates mooted at the meetings of the Cotton Advisory Board than by the estimates of cotton consumption put up by the Indian Cotton Mills' Federation. Leaving aside the altogether tentative estimates of the 1991-92 crop based on reports of the likely increase in the area sown in the light of the record high prices of cotton realised by growers during 1990-91, crop estimates after the completion of sowing operations have ranged between 115 lakh and 119/120 lakh bales.

Conventional Wisdom Proved Wrong

Conventional Wisdom Proved Wrong D P Sharma THE stock market has continued to push its way up. On April 2 it scaled a new peak with the BSE sensitive index touching a high of 4546.48 and the national index moving up to 2048.97, the 'circuit-breaker' notwithstanding. The closings were lower at 4387.76 and 1991.11 respectively. The strong upsurge in equity prices which carried the BSE sensitive cent) in just three trading sessions was attributable

Oilseeds Still Muddling Through

Oilseeds: Still Muddling Through D P Sharma THE downward drill in the prices of vegetable oils", edible as well as non-edible, continues and the fall since about the begin - ning of January has been fairly big

Dream Come True

Dream Come True D P Sharma IT is indeed a dream come true. This is how the stock market views Manmohan Singh's budget. The market simply danced with joy as it witnessed its dream materialising step by step in the course of the live telecast of the budget. The BSE sensitive index recorded its sharpest-ever rise in a special budget session

ICMF Losing Credibility

( lakh bales), leaving a carryover stock at the end of the season at 28.39 lakh bales which would be sufficient to meet mills' requirement for over three months.

Record Rabi Oilseeds Crop

Record Rabi Oilseeds Crop D P Sharma THE emerging edible oils scenario presents an interesting study. Going by the latest assessment by a cross section of the trade and industry of the rabi crops position, production of nine cultivated oilseeds this season is certain to set a new record of over 200 lakh tonnes, exceeding last season's record output of 191 lakh tonnes by at least 12 lakh tonnes. For the second successive season rabi oilseeds production will be higher than the kharif outturn, accounting for 55-56 per cent of the total oilseeds output. The significant increase in the relative share of rabi oilseeds in the total oilseeds production is attributable to a marginal decline in kharif output

Guarding the Guard

Guarding the Guard D P Sharma THE Securities and Exchange Board of India (SEBI) which had hitherto been functioning only under administrative guidelines has now been accorded the much-needed statutory status through a presidential ordinance arming it with wide-ranging powers to regulate almost every aspect of stock exchange and capital market-related activity, covering registration and regulation of stockbrokers, sub- brokers, share transfer agents, bankers to an issue, merchant bankers, underwriters, portfolio managers, investment advisors, investment schemes of mutual funds and monitoring and acquisition of shares and takeovers.

Cotton No Case for OGL Imports

D P Sharma THE cotton mill industry has long since been pressing hard for the import of a minimum 10 lakh bales of cotton, duty- tree, under OGL to relieve the shortage of cotton and help arrest the rising trend in prices. Piecing together press reports about New Delhi's response to the industry's plea for imports, the picture that emerges is very much blurred and it provides a good illustration of an apparently simple issue being made to look complex because of the widely differing perceptions of the ministries concerned.

Bridging the Edible Oils Gap

Bridging the Edible Oils Gap D P Sharma THE edible oils scenario has undergone a perceptible change since about the beginning of January. Prices which had been ruling firm till about the end of December reflecting mainly the failure of the groundnut crop in Saurashtra have come down by 4 to 18.5 per cent from their January 3 highs (for details see the accompanying table). The decline in prices has had very little to do with the government's efforts to discipline the market through persuasion (voluntary groundnut oil price freeze) and coercion (dehoarding drive). Apart from being altogether ill-conceived, the scheme of voluntary oil price freeze was never really implemented earnestly by the trade and industry. And the dehoarding drive had only a marginal impact. Going by press reports, the Gujarat government seized groundnut oil and seeds belonging to GROWFED worth Rs 11.55 crore from Junagad. Significantly enough, the entire stock was said to have been sold to NDDB. GROWFED the state's largest co-operative complex has often figured as a buying and selling agency of NDDB.

Optimism Unbounded

Optimism Unbounded D P Sharma THE stock market could not have greeted the new year with a broader smile and this could by no means be dismissed as a ceremonial gesture. It reflected essentially its optimistic assessment of the outlook for equities in the changing investment climate. On January 1, the Bombay stock exchange (BSH) sensitive index closed at 1957.3

No Case for Cotton Import

No Case for Cotton Import D P Sharma GOING by the statistical data compiled by the East India Cotton Association, tint cotton prices on January 7, stood 122 per cent to 91 per cent, depending on the variety, above the enhanced support prices fixed for the current season and compared with the prices a year ago they were 47 per cent to 75.6 per cent higher. To say that excepting very few varieties the ruling prices are 15 per cent to 23.4 per cent lower than the all-time highs touched in August


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