Janani Janma Bhoomi

Indian Capital Markets: From here where?

The year 2011 has opened with a mixed bag. Hopes and aspirations of both investors as well as the business community are hanging on a precipice. The question is whether the markets will harden and start moving north or whether it will hover around at current levels. Many leading lights in the capital market are giving their guestimates for Sensex and Nifty as on 31.12.2011. A better idea may be to predict the price of onions. Onions truly seem to have replaced Sensex as the talk of the town. Jokes apart, the broader issue is not about the market itself but rather about the sustainability of the India Shining Story.

Although the liberalization story should rightly be traced to the decisions of the young and intrepid Prime Minister Rajiv Gandhi, his untimely death at Sriperumbudur led India down a slightly different tunnel into the wonderland of economic development. Liberalization continued with two other policies resulting in the coining of the aconym LPG—Liberalization, Privatization and Globalization. The author’s of the new India Growth story were, of course, Narasimha Rao and Manmohan Singh.

There is an apocryphal story about the Liberalization story which goes like this: Manmohan then Finance Minister, goes to Rao’s house one morning almost as soon as he took over as Prime Minister. It’s early in the morning and the FM has a sheaf of papers in his hand. Rao opens the main door still in his lungi and asks him what he wants. Manmohan says, “Sir, we are proposing to partially liberalize the economy. This is the new industrial policy and the Government Orders where we are delicensing 14 industries. Will you please sign them?”

Rao looks at Manmohan and asks, “How many industries are we planning to liberalize?” Manmohan informs him that on the whole there is proposal to liberalize 21 industries. Narasimha Rao says, “Why are you delaying the process. Bring all the GOs to me in one shot, I will clear them all!”

Whether this story is true or not, the haste that the then Prime Minister showed was laudable as India had nearly a decade of economic growth back log to make up when compared with China, Taiwan and Korea. But, once the policy framework was put in place, the statutes were slowly amended to suit the policy. Rival governments might have differed on political ideologies but they have not wavered from the common LPG agenda.

The proof of the pudding was proved in the eating. The India growth story has not lost its steam. The global financial melt-down has left India comparatively unscathed. This is also due to the decision not to make the rupee fully convertible. Full convertibility is not economically bad, as such. In fact the relative indifference with which most Indian Business men have treated the Liberalized Remittance scheme seems to indicate that India is seen as the best investment destination. Similarly the rush of qualified professionals abroad has abated post Global Melt down. There are many Indians working abroad who wouldn’t mind coming back to Bangalore or Chennai given half the chance. They seem to echo the feelings of Lord Rama addressing Lakshmana in Lanka.

When Lord Rama defeated Ravana in the historical battle of Lanka, Lakshman, Lord Rama's brother asked him to settle in that beautiful city of Lanka which was supposedly made of bricks of Gold. This is the actual quote from Valmiki Ramayan of Lord Rama's answer to Lakshmana's request.

अपि स्वर्णमयी लंका न मे लक्ष्मण रोचते ।

जननी जन्मभूमिश्च स्वर्गादपि गरीयसी ॥

Api swarnamayee lankaa na me Lakshmana rochate

janaanee janmabhoomishcha swargaadapi gareeyasee

(O Lakshmana, I don't like Lanka though made up of gold

(because) mother & motherland are greater than heaven.)

I think it’s the right time to accept the power of our motherland and our capability to emerge as a super power in the world. This is one of the greatest times to be an Indian in India! 2011 marks the beginning of an epoch in the annals of our nation which may never occur again. 1991 to 2010 saw two decades of growth which was steady but slow. The next one decade as we move towards 2020 will see growth as we have never seen before. Whole cityscapes will change. New cities will be born. In this story of growth the beneficiaries would be those companies that do not simply accept or adapt to change but those that initiate and embrace change.

As investors we need to watch out for companies that have a proven track record of innovation and change. We should look for business models that work on changing with customer needs and profiles. Classic examples are the Telecom and Software sector where the customer base is growing steadily. Companies like Bharthi Airtel deserve a glance even at the current price levels keeping in mind a long term perspective. In the Software and Information Sector, we should wait and watch for opportunities to buy scrips like Infosys and TCS, when the markets take a dive in March-April.

The Infrastructure and Construction story are yet to happen. The potential scrips are not yet listed. But, with increasing opportunities, the huge construction contracting companies with huge order books on hand will access the primary markets. The length of the roads to be laid; number of new airports to be enlarged or built anew will be reflected in the huge bottomline of these companies. Some players like VA Tech Wabag Ltd and CCCL will be potential gainers. But ethical practices, corporate governance and professionalism in management will distinguish the winners from the also-rans. The fall-out of this would fuel the successs stories of cyclical like Steel and Cement.

Banking is a service sector line that is going to see a continuous progression growth followed by consolidation. Some of the potential targets for acquisition like IOB, Karnataka Bank and the small Kerala based banks are the best bets. A larger bank which may come out of the consolidation phase as winner is HDFC.

But all this will need an environment or climate that nurtures independent entrepreneurial effort as well as a level playing field where the Indian business houses can consolidate their position before taking flight as emerging transnationals with global reach and control.

Let me conclude this article with the wish list for India Inc as well as the Indian Investor:

· Rational, if not lower direct and indirect tax structures with clarity in the implementation issues.

· A Government where an honest administration service works outside the stranglehold of political bosses and their convoluted and self-serving agenda.

· Better Infrastructure in the form of smoother roads, larger harbours and broader telecommunication bandwidths.

· Reduction in the cost of raising finance through the development of more stock exchanges and other Market Infrastructure Intermediaries.

In the words of the immortal poet Rabindranath Tagore in his Gitanjali, “into that heaven of freedom let our country awake.”

A thought to begin the year

And let no one imagine that it is a mere fancy, the attaching of importance to the birth of the year. The earth passes through its definite phases and man with it; and as a day can be coloured so can a year. The astral life of the earth is young and strong between Christmas and Easter. Those who form their wishes now will have added strength to fulfill them consistently.

—H. P. Blavatsky

Lucifer, January, 1888

Imagine the Earth devoid of human life, inhabited only by plants and animals. Would it still have a past and a future? Could we still speak of time in any meaningful way? The question “What time is it?” or “What’s the date today?” — if anybody were to ask it —would be quite meaningless. The oak tree or the eagle would be bemused by such a question. “What time?” they would ask. “Well, of course, it’s now. The time is now. What else is there?”—Eckhart Tolle in “The Power of Now”.

Throughout the recent Coonoor trip, I did not wear a watch. Nor did I plan anything based on time schedules. I went with the flow enjoying every minute as it came to me and allowing it to pass by without regret or happiness.

I am slowly understanding the meaning of silence and its role in promoting true happiness. Sometimes words are inadequate. Silence alone can satisfy certain situations. I continue my experiments with silence.

Silence promotes contemplation.

Silence promotes listening.

Silence Promotes Concentration.

Silence promotes understanding.

Silence forces the other person to make himself clearer by speaking from his heart.

When I speak I ASSUME; so I make an ASS of U and ME.

When I am silent there are no assumptions. So I don’t make an ASS of U and ME!

Matthur

Every temple in India has a tale behind it. Mathur situated 10 kilometers on the left of the Thiruthani-Thirupathi road is no exception. When work was underway for laying the railway line, the diggers discovered a beautiful statue of Devi Mahishasuramardhini under the ground. The eight-foot high idol depicted the multi-armed manifestation of Durga on a lion piercing the asura with her three pointed spear. The Asura is ignorance; Devi is Light. They have built a nice little temple near the railway track. The place is a divine location with open fields, a small tank with water and in the distance the mountains running in a continuous range.

The Neem Tree (Azadirachta Indica) situated right in front of the sanctum sanctorum, which is intertwined with a Peepul Tree or Arasa Maram (Ficus Religiosa) is the Sthala Vrksham. The Neem tree is the symbol of Shakthi or Energy and the Peepul tree is the male. Thus when these two trees grow intertwined in a place they symbolize the natural meging of energy into matter to create life force. While Neem and Peepul trees are worshipped on teir own, the reverence shown to these twinned trees is even greater. Further, the local lore has it that the Devi out of her infinite compassion takes on herself all our sorrows and bitterness. Symbolizing this transference of bitterness, the leaves of the neem tree in front of the sanctum sanctorum at this temple are devoid of their usual sharp bitterness. The leaves of this tree are offered as prasadh to devotees at the temple.

A rare view of the Sholinghur Temple

25.12.2010

I made my annual pilgrimage to Sholinghur today. As we had spent the night in Sriperumbudur, we took the Kaveripakkam route. We took the right at Kaveripakkam on the Chennai-Bangalore highway after the Kancheepuram cutting. We passed through Banavaram which the railhead for Sholinghur and made our way to Sholinghur. On the way we could glimpse the holy hills on our left from quite far away. The Kaveripakkam road runs radially and meets the Arokonam connecting road very near shoilnghur. So we got a rare glimpse of both the hills in a line. So, here is a shot of Chinna Malai with the shrine of Yoga Anjaneyar on top and behind it at a dizzying height is the Yoga Narasimhar Temple atop the Periya Malai, where Lord Narasimha and Amirthavalli Thayar reside. You can see the Gold Leaf Plated Vimanam of the Lord shining brightly in the morning sun.

Karl Kubel Institute, Anaikatti, Coimbatore

21.12.2010

I am here with my good friend and trainer Roopkumar to conduct a two-day Outbound Training Programme for the senior executives of Texmo Industries.

I have heard a lot about Karl Kubel from Coimbatore Trainers and corporate executives. But I could never visit. Nestled at the foot of the Anaikatti range of hills, the Institute is picturesque with green lawns and spreading conifers. It is run by an NGO founded by Karl Kubel a German philanthrophist. It has locational advantages for conducting Outbound training. More than 100 people can be accommodated in the various training blocks scatteres over the sprawling grounds. Each block has its own rooms for lodging and Training halls. The Dining area is common and centrally located. The food was healthy and hot and had a Kerala flavor. In winter when the air is vchilly, it is almost like a hill resort.

Behind the Institute from south to north the western ghats rear up majestically. The road passing by the Institute goes further up to Anaikatti and thereafter to Mukkali, Mannarkad, and Silent Valley in Kerala.

There is absolutely no external disturbance due to the remote location. The fact that the cell phone connection is fragile means we don’t have to bother about participants going out for taking calls.

My ears, so used to the continuous buzz and background muzak of city life were pleasantly relieved by the total silence prevailing in the institute. This absolute “Nisabdha” or “absence of noise” served to accentuate sounds and make them louder than usual. The chirping of birds in the morning and the sound of a twig cracking as someone steps on it were clearly audible.

There is a very tenuous moble connection outside the main gate of the Institute. I went thither after the morning tea break to call up my office. I squatted on a conveniently placed concrete seat (possibly made for this purpose?) and spoke to Chennai. As I sat there after the call, I could see spread out before me the magnificent view of the range of mountains, shrouded in greenery with a bald peak here and there rearing up above the emerald slopes. In the near distance the yellow and white moths flew from flower to flower and fluttered through the low-hanging branches of the trees lining the opposite side of the curving ghat road. I simply sat there “enjoying-the-moment.” Even the regret that I did not have my camera handy was silenced in the realization that enjoying-the-moment now was more important than attempting to capture 2D images.

Shah Commision Report- Lost, and Regained

Whenever I speak about the Shah Commission report I am faced with a stone wall of apathy. Nobody is aware or interested. Whenever we speak of the emergency, people immediately say, ‘Ha..yes…It was Indra Gandhi wasn’t it?’ and then go on to state, if they are above fifty that all said and done trains were on time during emergency. How cheaply we are willing to sell our birthright.

Is it not better to be freeman in prison than a man without conviction or freedom to express it in a country where trains are on time but there is only one political opinion allowed.

Mr. Era Chezhian ex-MP has taken out and dusted his copy of the Shah Commission report and has published it. The report sets out in matter-of-fact terms the atrocities committed during the Emergency.

The book (a hard bound demi size tome released at a special discounted price of Rs. 700/-) was released by Shri L K Advani at Chennai on 19^th December. I had gone to the P S Senior Secondary School where this happened to attend the Tamilnadu Investor Association Meeting. Finding this event going on, I decided to enter and listen. I felt that a copy of the book would be a good addition to my library so I acquired it.

Thuravoor Narasimhaswamy Temple

09.12.2010

There are numerous temples for Krishna and Bhagavathy Matha in Kerala. Temples for Shiva or Mahadevan as he is known here also abound. But a temple for Narasimhamurthy (The man-lion deity)? My curiousity being aroused by Mr. Unnithan I decided to visit the Narasimhaswamy temple at Thuravoor on the way back from Kayamkulam to Kochi Airport.

The temple is quite visible from the main Highway. There is a huge temple tank and behind it the Temple in typical Kerala style. Adjacent to the main shrine there is anot

her for Sree Krishnan. This shrine is a cylindrical or rounded structure with a conical shikhara. There are a few interesting murals (wall paintings) of Narasimhavatar. One depicts the lion face with the body elided. The rakshasa king Hiranyakashibu is on the lap of the deity and

two of the eight hands of the Lord are tearing out his entrails. The lowest pair of arms hold the body firm. The third pair is depicted as taking the entrails to the gaping leonine maw with sharp pointed teeth. The upper most pair of arms is raised aloft holding the symbols of Vishnu, the Disc and the Conch. A truly gory depiction bringing out the Ughram or ferocity of this anthropomorphic incarnation. And below this bloody spectacle stands Baktha Prahalad hands clasped in devotion and eyes closed in the ecstasy of Love for the Lord.

Thuravoor is a main area of the Gowda Saraswath Brahmins. The temple was built by one Ravi Naik a devotee of Lord Narasimha who was told by the Lord himself to install an idol at the location of the present temple. The Lord also sent two divine sculptors to carve the idol. The sculptors worked in secrecy and instructed Ravi Naik not to peep. The overenthusiastic devotee hearing no noise from inside, could not resist himself and peeped in at the last moment. The sculptors were gone but the idol of Lord Narasimha was there almost complete and wondrously beautiful, except for the tip of the finger of one foot. The temple is now under the control of the Ko0chi Dewaswom Board. The original Narasimhar idol was moved for safety to the Anantha Narayanapuram Temple in Alapuzha.