World Markets Simplified

The deterioration in the technical structure of quite a few index heavyweights, the ones from the banking universe in particular, is a cause of concern. Stocks from the two-wheeler sector too have displayed a penchant for seeking lower levels.

Given this backdrop, investors may avoid fresh equity exposures while those already invested may buy some protection via the options route.

CNX Bank Index (9,802.35): The crack in this index played a key role in pulling down the Nifty on Friday (4 May). The short-term outlook remains bearish and a test of the immediate support at 9,250 appears likely.

Any signs of recovery may be used to take short positions in the index, with a stop-loss at 10,600. Fresh investment in banking stocks may be avoided while those having significant exposure to the sector may consider put options as a risk control measure.

Power Finance Corporation (Rs 154.75): The stock has been in a downtrend since it touched a high of Rs 223.80 on 17 February. The recent chart patterns indicate the bearish trend could continue and the stock could test the immediate support at Rs 132.

Short positions may be considered with a stop-loss at Rs 174, for a target of Rs 132. The downtrend would gain momentum on a fall below Rs 132 and the stock could test the major support at Rs 120.

Axis Bank (Rs 1,009.85): After hitting a high of Rs 1,309 on 21 February, the stock has been in a downtrend, marked by a sequence of lower highs and lower lows. The recent price action suggests that the stock could fall to the short-term support at Rs 900.

The bearish view would be invalidated on a close above Rs 1,140. Short positions may be considered on a rally, with a stop-loss at Rs .1,150 for a target of Rs 900.

The current economic turmoil in US and European nations have led to a sharp fall in property prices there making them extremely lucrative for non-resident Indians as well as resident Indians to invest in. More and more Indians are opting for offshore properties as a second home in exotic locations. However the process of purchasing a property in foreign countries has its own share of complexities, which need to be addressed before committing the money. Properties owned by banks as a result of fore closure or as non performing assets are the most sought after while there are a few places, which advertise their real estate as means of secure investments for foreigners.

Where to Look for?
Indians are increasingly acquiring properties across the globe but the leading destinations for offshore properties remain London, New York, Singapore and Dubai. Exotic holiday destinations such as Thailand, Malaysia, Southern France, Florida and Mauritius are also gaining rapid popularity among those looking to invest abroad in real estate. London is popular due to its assured returns over a long horizon while resort locales are being used as a second home for the rich and famous. The sea side resort of Pattaya is offering three bed room independent houses at prices as less as 60 to 70 lakhs which are pretty competitive compared to such houses in Tier 1 cities of India. The places in US are preferred by Indians who have either studied there or have worked for some time. Despite the high prices of real estate in Dubai, it is still popular due to its proximity to India and the presence of large Indian diasporas in the city.

Legal Precautions before Investing
Before even thinking of buying a property offshore one needs to be absolutely clear regarding property laws in India and other countries. Indians are permitted to buy property in foreign nations by making an annual remittance of up to $ 2000000 in a financial year. The Foreign Exchange Management Act also permits Indians to acquire property abroad as gifts or through inheritance. Additionally resident Indians can own property elsewhere in case it was acquired while they were not residents of India. However one must consult trusted legal experts in country where they want to buy the property in regarding local taxation policies, citizenship laws and ownerships provisions. Many nations mandate foreigners to pay a huge property transaction fees while making the purchase. Extra stamp duty costs are often levied on foreigners acquiring property in certain countries which may add up to the total cost significantly.

Practical Considerations when Buying Property Offshore
Here are a few practical guidelines that will come handy while setting out to buy yourself a house in some exotic location abroad or a simple investment in foreign countries.

- Make sufficient number of visits to that place during different parts of the year to get a broad overview of the locale.

- Remember there is adequate scope of bargaining at all places around the world and do not swayed by the quoted price.

- Get a consolidated list of all transaction charges, stamp duties and associated fees for buying the property beforehand.

- Always negotiate through a reputed property brokerage firm of that country.

- Additionally hire an independent legal advisor to give detailed inputs.

- Time your purchase when the exchange rates of that country's currency are in your favor.

- Understand the legal implications of your purchase and rules that govern your access to that country.

Owning a grand property in foreign nations is no more the domain of the extremely rich anymore. However there is a definite need for detailed analysis and planned approach in order to get a good deal and avoid legal complications subsequently.

Having embarked on an ambitious expansion of its atomic energy programme, India will build an underground repository about 1km below land surface for storing nuclear waste and is setting up a laboratory to develop the required technology.

The research laboratory will also be underground, operating in an abandoned mining site, where shafts and chambers provide the setting for a complex analysis of factors that affect storage of nuclear waste generated by atomic power plants.

At present, India has the capacity to store nuclear waste for 30 years by which time it will lose some radioactivity, but underground disposal is needed in view of plans to add 5,330mw in the 12th Plan and for atomic power to contribute 25% of power production by 2050.

Nuclear power production has picked up with the generation target of 32,000 million units being met in March - the first time in the last five years.

"The proposed laboratory will be of a generic nature. Such laboratories are used for development of methodology and technology related to emplacement of solidified waste in the repository. Experiments will form the basis of the underground geological repository for storing high level nuclear waste," the department of atomic energy said replying to a Parliament question.

A Department of Atomic Energy (DAE) source said the laboratory will research parameters for conductivity, fissures and permeability that impact containment of radiation. "There are tests for thermal systems, rock mechanics, hydrological and chemical systems," the source said.

The department told three MPs, who raised queries, that currently the inventory of waste is small and the interim storage facility adequate. "Presently, work related to host rock characterization to develop comprehensive data bases is in progress," DAE said.

The department adopts a three-stage process to manage nuclear waste which is first converted into an inert solid material in the form of sodium borosilicate. Then, the solidified waste is stored under surveillance in an air-cooled facility for 25-30 years, and finally this will be disposed in the underground repository that is being planned.

The waste will be disposed "at a depth of 800-1,000 meters to isolate radioactivity from the environment," the government has said.

Japanese utility Hokkaido Electric Power began shutting the country's last active nuclear reactor on Saturday, leaving the world's third-biggest user of atomic energy with no nuclear-derived electricity for the first time since 1970.

A crisis at Tokyo Electric Power's Fukushima Daiichi nuclear plant, where an earthquake and tsunami in March last year triggered radiation leaks, has hammered public faith in nuclear power and prevented the restart of reactors shut down for regular maintenance checks.

Hokkaido Electric said it started lowering output from the 912-megawatt No.3 unit at Tomari nuclear plant in northern Japan at 5 p.m. (2 a.m. New York time).

The maintenance on the unit is set to begin at around 11 p.m. (9 a.m. New York time) when power generation falls to zero, with the unit to be shut down completely by the early hours of Sunday.

The shutdown means all of Japan's 50 reactors have been taken off line, marking the country's first nuclear power-free day since May 1970.

Trade Minister Yukio Edano and three other ministers have been trying to win the support of communities to reactivate two idled reactors at Kansai Electric Power's Ohi nuclear plant to help ease expected power shortages of nearly 20 percent in coming hot-weather months.

The two Ohi reactors are the first to be considered for reactivation by the central government, but it faces an uphill battle of winning public support.

Kansai Electric's expected deficit for this summer was the highest among four Japanese nuclear plant operators that forecast shortfalls when demand peaks in the summer.

Costly Option

The last time Japan went without nuclear power was in May 1970, when the country's only two reactors operating at that time were shut for maintenance, the Federation of Electric Power Companies of Japan says. 

Nuclear power provided almost 30 percent of the electricity to keep the $5 trillion economy going before the March 11, 2011 disaster that killed almost 16,000 people and left more than 3,000 missing. 

A year on, the level of public concern about the safety of the industry is such that the government is still struggling to come up with a long-term energy policy, a delay having a profound impact on the economy and underlining just how costly it will be to contemplate a nuclear-power-free future. 

Having boomed in recent decades on the exports prowess of big brands like and Canon, the economy suffered its first trade deficit in more than three decades in 2011 as power producers spent billions of dollars on oil-and-gas imports to fuel extra generation capacity. 

At the time of the Fukushima crisis, then Prime Minister Naoto Kan called on Japan to wean itself off of nuclear power. Up to that point, Japan had been planning to lift the share of nuclear generation to over 50 percent by 2030 from about 30 percent.

The government of current Prime Minister Yoshihiko Noda has softened Kan's call. Noda says Japan can not afford to be nuclear free, although he still holds that as an ideal.

But the government has no clear timetable for getting nuclear power back up and running as it tries to navigate the public opposition—rare in Japan—and the demands of business that wants a stable supply of power.

Cabinet ministers last month rushed to try to win over the public to allow the restart of two nuclear power reactors at Kansai Electric Power's Ohi plant in western Japan, in what experts said was a recognition of the implications of a nuclear-free summer.

The public remained unconvinced. A poll by Kyodo news agency last weekend showed about 60 percent of the public opposed to restarting the two reactors.

Most mayors and governors whose communities host nuclear plants want safety assurances beyond government-imposed stress tests before agreeing to restarts, a Reuters poll showed in March.

To overcome the opposition, some politicians have been more forceful. Yoshito Sengoku, the acting president of the ruling Democratic Party of Japan, on April 16 called an abandonment of nuclear energy the equivalent of "mass suicide," Kyodo news reported. His comment was criticised by Chief Cabinet Secretary Osamu Fujimura, indicating internal divisions over how to handle the issue. 

Global Shift

Ultimately, some argue Japan's economy, already weakened by years of deflation, would suffer if reactors are not restarted. 

"It's not an option Japan should take. There will be less employment and the economy will be on a shrinking trend," said Takeo Kikkawa, a professor at Hitotsubashi University.

Japan's liquefied natural gas imports climbed 18 percent in volume and 52 percent in value to 5.4 trillion yen ($67 billion) in the year through March. 

Renewable energy, although given emphasis in energy policies being formulated, is not expected to be much of an immediate salve. Energy from renewable sources account for about 10 percent of Japan's power generation, most of that from hydroelectric dams. Wind and solar together contribute about 1 percent.

Worldwide, there has been a shift with Germany, Italy and Switzerland moving away from atomic energy, prompting the International Atomic Energy Agency to revise down its forecast for growth in the industry.

The United States, China and India are still planning to increase the number of reactors.

In Japan, a delay in setting up a new, more independent Nuclear Regulatory Agency due to deadlock in a divided parliament is further clouding the outlook.

Some analysts say the government is not going to turn public opinion unless it admits that nuclear power is never going to be absolutely safe. 

"The debate needs to be recast," said Bob Geller, a professor of geophysics at Tokyo University. "They have to come clean, and say, in effect - look we know they're not perfectly safe but we've made a careful evaluation of the risks, which we'll make public."

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The U.S. Treasury Department said on Friday it plans a third sale of the common stock of American International Group that it acquired as part of the government bailout of the insurer in 2008 at the height of the financial crisis. Whether it is the right time to public offering as markets are still struggling with anemic recovery and Europe is already in a painful recession time? Is the demand for risky assets are still healthy?