New Delhi, November 11
The country's economic growth is expected to be less than 6% in the next fiscal due to slowdown in western markets like US and Europe, a survey has said.

"A majority of respondents surveyed said they expect the country's gross domestic growth in the range of 5-6 % in the next year," according to a survey jointly conducted by Confederation of Indian Industry and McKinsey & Co.

As many as over 50% respondents said that the Euro crisis, followed by slowdown in the US and increasing oil prices are expected to have the biggest impact on the Indian economy, it said. The growth rate during the first quarter of the current fiscal was 5.5%.

In the budget for FY2012-13, the then finance minister Pranab Mukherjee had projected the economy to grow by 7.6(+/-0.25)%.

Recently, the Reserve Bank, in its half yearly review of the monetary policy had sharply lowered this fiscal's economic growth projection to 5.8%, from 6.5% estimated earlier.

This was done in the view of global and domestic factors like poor investments and subdued demand.

CII said that around 32 CFOs from leading Indian companies across sectors including manufacturing, information technology, services, consultancy and financial services participated in the survey.

"Most of the respondents said slowdown in growth is one of the biggest challenges faced by corporate India," the survey said adding, corruption is also affecting their businesses.

Besides, the survey said, the Indian economy's outlook remains 'cautiously optimistic' and key enablers to fuel the economic growth include increased FDI, reduced fiscal deficit and enabling corporate growth, it said. — PTI

Founded in 1994, Educomp Solutions Ltd is India’s largest education company with a reach of 32,000 schools and 21 million learners across the globe. It is engaged in providing educational services for pre-schools, higher education, and skill-based vocational courses in the country. The education sector in India is estimated at US $40 billion and growing at 16 per cent every year. In an interview to Sanjeev Sharma, Shantanu Prakash, chairman & managing director of Educomp Solutions, talks about the footprint across education solutions, the opportunity in education and new initiatives.

Q. What is the footprint of Educomp across verticals in the education sector?

A: Educomp Solutions today reaches over 32,000 schools and 21 million learners across the globe with a wide portfolio of innovative products and services to enhance teaching-learning. Our innovative digital curriculum product called SmartClass has grown at over 100 per centcompounded annual growth rate (CAGR) over the last five years and is now present in 13,500 schools reaching over six million children in India.

We work closely with state governments (over 15 till date) to bring technology aided learning to underprivileged children in government schools across urban, semi-urban and rural India. We’ve also developed high quality digital content in over ten local languages to benefit students at all levels. While our digital teaching-learning system Smartclass today has the largest presence by far in private schools, we’re constantly looking to innovate on the model to make it more and more accessible and affordable for schools and are also now working on pilot projects for introducing Smartclass in government schools.

We have also embarked upon innovative IP (Internet Protocol) driven projects to set up pre-schools, high schools and professional and vocational education institutions. Educomp Solutions currently runs 832 pre-schools, 69 brick and mortar K12 schools, seven colleges, one higher education campus, 328 vocational training centers, 85 test prep centers and has 4.7 million users of its various online businesses.

Q: In a crowded industry what has been the differentiator of Educomp Solutions?

A: Apart from being the largest education company in India, we are the only one spread across the entire education ecosystem. Our presence in each of the education verticals is marked with technology-enabled products, high quality people, structured processes and entrepreneurial leadership. From preschool toddlers to post graduate students, from core curriculum subjects at the school and college level to vocational and employability skills for young, about-to-enter-the-job-market adults —Educomp addresses the entire education life cycle. The company has a presence in the full life cycle of a child — right from pre-school to when he or she leaves formal education in search of a vocation.

Q: How do you see the education sector shaping up in the coming years?

A: India's education sector is currently estimated to be around US $40 billion market, with a potential 16 per cent five-year CAGR. The willingness to adopt technology and new age learning tools by private and public education sector will see an exponential growth over the next few years. There will be a lot of emphasis on skill development which is critical to put the knowledge that one has gained during his or her education into practical use. There will be a more focussed approach on the IT-enabled education that will lead to tectonic shifts in the overall quality of educational content and its delivery. Technology will open up many avenues of education or learning for children. In an age where children are exposed to instant learning through various other information sources, classrooms will evolve from a traditional chalk and board classroom to a technology classroom which engages the students in a much better and more creative manner.

Q: What are the new initiatives being planned at Educomp for schools and students?

A: Educomp Solutions had earlier in the year launched Smartclass CTS, the new avatar of the popular Smartclass digital learning system which is today reaching students across 13,000 schools in India. Educomp Online is yet another innovation from the company. It is an edu-content and online school management resource for new age schools.

Educomp Online provides smartclass videos, calibrated assessments, online learning management and edutainment learning. We will soon be launching educational tablets that will be a one of its kind product in the market. This and many new initiatives under our supplemental and higher education verticals are also in the pipeline.

Q: What are your overseas plans?

A: Educomp has a significant presence in markets like Southeast Asia and the United States and is looking establish presence in China, Africa and the Middle East. In China we are planning to introduce Smartclass and pilots are already underway. In the Middle East and Africa markets, we are developing important partnerships that will allow us to leverage our products and services at scale and build additional revenue streams.

Q: What is the future of digital classroom market in India?

A: Indian education sector is today among the fastest growing in the world. There are close to 1.5 million government schools and 100,000 private schools in the country. Out of this, only 7 to 10 per centof the private schools have tapped the potential of multimedia classroom teaching whereas in government schools, it has barely made any inroads. 

India's education sector is currently estimated to be around US $40 billion market, with a potential 16% five-year CAGR. The willingness to adopt technology and new-age learning tools by private and public education sector will see an exponential growth over the next few years.

— Shantanu Prakash, Educomp Solutions chairman & MD

Q: A retired person, who is not a qualified physician, has opened an X-ray and ultrasound clinic and has employed a radiologist to perform the services. No medical treatment or medicines are provided. Will such a clinic come under ‘business’ or ‘professional’ category for the purpose of assessing income tax?
— Jagdish

A: Income in respect of an X-ray and ultrasound clinic will be assessed as income from business because the owner is not carrying on any professional activity as he or she is not a qualified professional.

Q: I am a 72-year-old pensioner and have accumulated funds in the form of NSCs, bank FDs, recurring deposits, Monthly Income Scheme account, etc. How best can I invest these funds?
— Baldev Raj

A: It will be advisable to start some charitable work and utilize the spare funds for charity. This will enable you to keep yourself occupied and you will be able to use your time for the social service.

Mumbai, November 11
Notwithstanding the festive spirit, stock markets are likely to remain volatile with the release of industrial output data and inflation figures in the truncated week amid tepid global sentiments, say experts.

IIP data for September is scheduled to be announced on Monday, which will act as a major factor in determining the course for the week.

Experts said despite the festive cheer the markets are not likely to show any major change in momentum as global financial woes and US fiscal issues may dominate investor sentiment. — PTI

Divali is among the biggest festivals of India, which brings joy and hope for people who light up their homes to welcome the occasion, and buying gold remains among the biggest activities at this time for various religious reasons associated with it. Many Indians believe buying gold on this auspicious day attracts prosperity in business and life and increases one's wealth for the ensuing year.

However, it is not just the festive season, which tempts people to buy gold, but also the rising inflation forcing people to invest in safe spots. No doubt, gold is definitely a good hedge against inflation, as it has a natural tendency to appreciate and catch up with inflation in the economy over a long period of five to seven years. People across the globe have taken to gold as investment in last several years due to global economic slowdown. Recently, we have witnessed gold prices tumbling down to about Rs 30,800 per 10 grams (as on November 5), as a result of which buyers are likely to get more attracted towards this precious metal. Festive and marriage seasons are ongoing, and this dip in gold prices will surely benefit customers. This is the reason we might have already started seeing jewellery stores attracting huge crowds.

Gold has some unique advantages over other investment options. First of all, it is the most liquid among all the asset classes, as it can be converted into cash within minutes. One just needs to pay a visit to the nearest jeweller and convert the physical gold into cash. Another advantage is that you can enjoy your gold collection by wearing different gold ornaments with different designs, and simultaneously the value is also appreciating. Buying physical gold also has its own perils like one has to safeguard it, as it can be stolen or lost. This is one of the reasons why investing in gold mutual funds or gold ETFs (exchange-traded funds) is catching momentum.

India has one of the world's highest savings rates, at over 30 percent - more than double that in the United States - and the bulk of the country's US $800 billion in savings is parked in gold. Also, it is well known that India is the largest importer of gold and amongst the largest consumers of the metal in the world. Moreover, the demand for gold is only expected to increase in the coming times.

As a thumb rule, the total investment in gold or gold related securities should be around 10 per cent of your total portfolio. Following are the ways to invest in gold:

Gold jewellery

This is the most common form in which gold is bought in India. Though one would enjoy owning it with its value also growing continuously, we do not strongly recommend people to buy gold in this form because of various disadvantages attached. Making charges for gold jewellery, added cost of getting hallmark certification, ensuring purity and quality of gold, safety issues, etc, are some of these.

Gold bars and coins

One of the best ways to buy gold for investment purpose is by buying gold bars and coins. An increase in purchase of gold coins has been witnessed this festive season, as consumers consider it as a safe investment.

Gold ETFs

Gold Exchange Traded Funds have emerged as a highly popular investment avenue among the retail investors, whose units are held electronically in the demat form and traded on exchanges. You would need a broking account and a demat account to invest in gold ETFs. Gold ETFs offers investors advantages of security, convenience, liquidity, purity, no storage cost, lower capital gains tax if held for more than one year as opposed to three years in case of physical gold, no wealth tax and no VAT. Moreover, when you sell back gold in the ETF form, you get a better price than what you will be getting from your jeweller or from the bank.

Gold funds

Offered by mutual funds, gold funds assist people who do not want to get into the hassles of opening a separate demat account. Investing in gold funds is similar to investing in mutual funds, where you give your money to a gold fund which further invests into the gold ETFs (benefits same as those of gold ETFs). However, there is a certain small cost associated with the same.

E-gold

This is listed on the National Spot Exchange and one has to have a separate commodities demat account for this. E-gold can be converted into physical mode, if it is under the National Spot Exchange.

If your total investment in all varieties of gold is less than 10 per cent of your total financial wealth, you may start accumulating the same by starting a monthly SIP (systematic investment plan) of a suitable amount in a gold mutual fund scheme, or consider the above mentioned options. So, enjoy this Divali and buy gold, which will serve all your purposes, including investment and financial planning!

The author is senior vice president, marketing at Bajaj Capital. The views expressed in this article are his own

For many Indians Divali marks the beginning of a new year. Associated with victory and prosperity, it is the time for them to make momentous decisions and high value purchases. While each Indian community celebrates its New Year, throughout the calendar year Divali commonly marks the start of the new financial year across each business.

For the Indian stock markets also, Divali represents the most auspicious time of the year. With festivities in the air, there is also hope and aspiration for a better and more profitable year ahead. To ensure that this aspiration does become actual reality, Indian stock markets celebrate a time honoured tradition - mahurat trading.

As the name suggests, mahurat trading basically means trading within a predesignated auspicious time. Each year, the Bombay and National Stock Exchanges earmark an hour on Divali to welcome wealth and prosperity. The session happens for an hour in the evening and is considered extremely propitious.

Mahurat trading also ensures a positive run for the exchanges. The trades are nominal, usually bought as a token to celebrate; and intraday profits, however small, are always booked. The hour usually ends with the benchmark BSE Sensex and the NSE Nifty stock indices notching up profits, however small they may be. In fact, the Sensex has ended trading on mahurat day with positive returns eight times in the last decade. This year, also known as Samvat 2069 according to the Hindu calendar, mahurat trading will take place on November 13 starting at 3:30 pm and ending an hour later at 4:30 pm.

What does this mean for Investors? It's an opportunity for you to participate in a time honoured tradition and effectively start your financial year on a positive note. Consider this to be akin to purchasing your new car or your investment in any property. Mahurat trading is also the perfect time for first time investors to make their foray into the stock markets, with recommended stock picks and small amounts of capital investment.

The high from mahurat trading could be followed with a low, but if the stock is good and you stay invested, you will surely gain.

For newcomers, place your first trades during mahurat hour as the trades are token and nominal. Thereby, while the trade itself ensures the auspicious start to your foray into the stock markets, the small capital investment will ensure that you take your time to better understand the markets and build your portfolio steadily over a period of time.

However, whether as veteran investors or newbie rookies, do remember to base your decision on sound research and advice to ensure a strong fundamental base for your portfolio. Once you have traded, remember to stay invested in the medium to long term to ensure that you book profits from your holdings.

This is also an extremely good time to choose your financial advisor or broker to better discipline and achieve your financial goals. However, do pay heed to his advice to make the most of what the Indian markets have to offer.

This year, mahurat trading is expected to see a range of 5,600-5,800 and trades above 5,800 levels are expected to confirm the uptrend in the Indian equity indices.

The author is AVP, derivatives at Kotak Securities. The views expressed in this article are his own