Showing posts with label intraday tips. Show all posts
Showing posts with label intraday tips. Show all posts

Thursday, 7 February 2019

Sun Pharma surges 3% as subsidiary Taro posts strong Dec qtr show


Shares of Sun Pharmaceutical soared 3 percent in trade on Thursday morning as investors reacted to good numbers by Taro Pharma, its subsidiary.

The stock touched an intraday high of Rs 426.75 and an intraday low of Rs 422.30.

Taro Pharma reported net sales of USD 176.4 million and is higher by 13 percent. The net profit rose 422 percent to USD 93.5 million. The operating performance by company also witnessed a boost.

Operating profit rose USD 78.9 million, while operating margins rose to 44.7 percent from 39.7 percent

At 09:18 hrs Sun Pharmaceutical Industries was quoting at Rs 425.95, up Rs 10.55, or 2.54 percent, on the BSE.

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Source: Moneycontrol

Thursday, 24 January 2019

Stock Picks of the Day: Why Dishman Carbogen, Tata Steel & Avenue Supermarts are a 'buy'


On the daily chart, Nifty gave a breakout of a falling trend and rested the trend line. On the weekly chart, the index is in an upward rising wedge, which suggests a bullish trend.

Also, Nifty formed a Golden Cross of 50-EMA and 200-EMA, visible on the daily chart, which again supports the bullish setup. The weekly oscillator RSI (14) has given a falling trend line breakout which is bullish in nature.

On the options front, maximum open interest position is visible in 11,000 CE (43.76Lakh shares) and 10,500 PE (37.13Lakh shares); followed by 10,900 CE (35.60Lakh shares) and 10,800 PE (32.54Lakh shares).

Going forward, 10,800 is expected to act as crucial support for the Nifty, and any fall towards 10,800 may get bought. On the higher end, 11,000 is expected to act as initial resistance.

Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, breakdown below 10,800 may trigger short-term bearishness in the market.

Also, Nifty formed a Golden Cross of 50-EMA and 200-EMA, visible on the daily chart, which again supports the bullish setup. The weekly oscillator RSI (14) has given a falling trend line breakout which is bullish in nature.

On the options front, maximum open interest position is visible in 11,000 CE (43.76Lakh shares) and 10,500 PE (37.13Lakh shares); followed by 10,900 CE (35.60Lakh shares) and 10,800 PE (32.54Lakh shares).

Going forward, 10,800 is expected to act as crucial support for the Nifty, and any fall towards 10,800 may get bought. On the higher end, 11,000 is expected to act as initial resistance.

Sustained trades above 11,000 may induce a rally towards 11,200. On the other hand, breakdown below 10,800 may trigger short-term bearishness in the market.

Here is a list of top three stocks which could give 7-10% return in next 1 month:

Dishman Carbogen: Buy| LTP: Rs.219.25 | Target: Rs 240| Stop loss: Rs 212| Return 9.50%

On the daily chart, the stock price has made a bullish AB=CD harmonic pattern which suggests a reversal of the current trend is likely.

In addition, the price is finding support around historical trough on the daily chart. Moreover, an inverted Hammer is visible on the daily chart of the stock. Traders can accumulate the stock in the range of Rs 217-220 for the target of Rs 240 and a stop loss below Rs 212.

Tata Steel: Buy| LTP: Rs.464.60 | Target Rs 505| Stop Loss: Rs.445| Return 8.6%

The stock has formed a Bullish Harami candlestick pattern on the daily time frame. On the Weekly chart, the stock has completed bullish Butterfly Harmonic pattern.

Moreover, the stock has taken support at 50 percent retracement level at Rs 448, from its previous rally of Rs 188 to Rs 720. Traders can accumulate the stock in the range of Rs 460-470 for the target of Rs 505 and a stop loss below Rs 445.

Avenue Supermarts: Buy| LTP: Rs.1397.30 | Target: Rs 1470-1500| Stop Loss: Rs.1349| Return 7%

On the daily chart, the stock has given a downwards consolidation breakout which suggests a reversal of the previous downtrend. The rise in price was backed by increased volume.

On the daily chart, a positive divergence in the RSI (14) is seen which is likely to initiate a positive breadth in the stock. Traders can accumulate the stock in the range of Rs 1390-1400 for the target of Rs 1470-1500 and a stop loss below Rs 1349.

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Source: Moneycontrol

Wednesday, 23 January 2019

ITC to announce Q3 earnings today; brokerages expect profit to grow around 12%


Cigarette-to-hospitality major ITC is likely to report strong earnings growth for the quarter-ended December 2018, driven by higher realisation in cigarette and performance improvement in other FMCG and hotels businesses.

The stock rallied 7 percent in 2018 but fell 5 percent during the third quarter. The overall gain was a consequence of no change in tax on cigarettes in last several GST Council meetings.

The company is scheduled to declare its Q3 earnings report on January 23.

According to brokerages, profit is expected to show an average 12 percent growth year-on-year.

ICICI Securities, which expects highest profit growth among brokerages considered for this copy, said with improving margins in the FMCG business and higher realisations in the cigarette business, net profit (adjusted for one-offs in the base quarter) is likely to grow 13.8 percent YoY.

Prabhudas Lilladher estimates 11.2 percent YoY increase in PAT on cigarette volumes and improved profitability in FMCG and hotels.

Largely, brokerages expect revenue growth in the range of 9-12 percent for the quarter ended December 2018. Only Sharekhan estimates more than 15 percent growth in topline, driven by growth across segments barring paper business.

"ITC is expected to post 11.4 percent YoY sales growth during the quarter on the back of robust growth from the cigarettes & FMCG segments," ICICI Securities said while Motilal Oswal expects net sales to grow 9 percent YoY.

Cigarette, the key business which contributes more than 40 percent to total revenue, is expected to deliver 4-6 percent growth in volumes on a low base of 5 percent drop during Q3FY18, according to brokerages.

Antique Stock Broking and Edelweiss Securities expect 6 percent volume growth in cigarette business whereas Motilal Oswal and ICICI Securities estimate at 5 percent each. Prabhudas Lilladher and Reliance Securities see 5 percent growth.

Prabhudas Lilladher said cigarette margins are expected to improve marginally on the benefit of price increase taken in Q2 in RST filters whereas Edelweiss Securities said no change in GST rates also leads to no pricing imbalances in the system.

Among others, FMCG, hotels and agri-businesses are expected to show double-digit growth but paper segment growth is likely to remain subdued.

Antique Stock Broking expects continued double-digit growth in other FMCG (non-cigarettes), led by series of dairy product launch, but it will weigh on margin due to high advertising & promotion.

"In FMCG business, we expect around 11 percent revenue growth on a base of 11.8 percent (Q2FY19 saw revenue growth of 12.7 percent on a base of 5 percent)," said Edelweiss Securities that expects hotels business to clock revenue growth of around 10 percent on a base of 9.2 percent and agri-business to clock growth of around 10 percent YoY on a base of negative 8.4 percent growth.

Paper business is expected to be subdued and may record 1 percent revenue growth on a base of -4.2 percent, according to Edelweiss.

Key issues to watch out for

> Trends in cigarette volumes

> Demand outlook for FMCG categories and segmental profitability

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Tuesday, 22 January 2019

Sun Pharma surges 4% on co scraps Aditya Medisales arrangement


Shares of Sun Pharma soared in trade after multiple sessions of weak trades. Investors are likely to have bet on the stock due to possible bottoming out of prices as well as reports of some action by the company on Aditya Medisales.

India’s largest drugmaker is likely contemplating discontinuing the super stockist arrangement with Aditya Medisales (AML), sources told Moneycontrol.

“They are doing away with AML as super stockiest,” said a person with knowledge about the matter on condition of anonymity.

“They are internally debating whether to take it (AML) inside the company, or give it to some third party, depending upon where they can save the money,” the source said.

A spokesperson of Sun Pharma told Moneycontrol the company is evaluating all the options.

Sun Pharma’s domestic formulation business is entirely routed through a promoter-owned entity called AML, a super stockist that was declared as a related party of the company only during FY18.

In an analyst call in December 2018, Sun Pharma said the arrangement with AML was made for an efficient tax structure and it is ready to review if investors aren't comfortable.

AML had revenues of Rs 8,000 crore in FY18.

Sun Pharma stock took a hit last week, with shares dropping 12 percent on intraday trading on December 18. This was on reports of a whistleblower complaint to Securities and Exchange Board of India (SEBI) alleging transactions over Rs 5,800 crore between AML and Suraksha Realty, controlled by Sun Pharma’s co-promoter, Sudhir Valia out of the money generated from the publicly-listed company.

At 09:30 hrs Sun Pharmaceutical Industries was quoting at Rs 414.55, up Rs 16.20, or 4.07 percent.

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Source: Moneycontrol

Saturday, 19 January 2019

Prepare your investor nerve before Lok Sabha elections 2019


Elections tend to bring out the more emotional side of our personalities.
The 2019 elections are due in another six months and investors have already started prepping themselves up for the D-Day. From what I gather, there is a lot of conjecture, to and fro of information most of which is not duly validated; and I believe in the coming months we are going to be bombarded with such half-baked information more so.

Hence, given the volatility in the markets and the investors nerve being on the brink of jitters, how do you gather your save to face the elections? I have two important tips for you.

• Stick to the original plan of action!

Ideally, it is essential for every investor to have annual portfolio goals and plan their overall return on the basis of it. Your target return can be designed to remain as conservative as 5 percent or as aggressive as 15 percent based on your retirement or savings level. Either way, by knowing where you are at, you can make a better decision going forward.

For example, say your current portfolio has returned 10 percent for the year and your goal is to hit 12 percent. Additionally, let's say you are petrified of the election results and expect a sharp decline in the market no matter who wins. Well, if you have nearly reached your goal and don't want to risk your gains or principal, then it may make sense to reduce your equity positions and raise some cash.

But in either case, do not take any radical decisions to completely alter your portfolio. Counter the market situation with a short-term plan based on your individual analysis and gut instinct than any opinion polls or projections. After all, at the end of the day, it is your money, not your advisors.

• SIPs – to save the day

If the last few months have taught us anything, then it is that there is no one clear trend emerging on who will win the 2019 elections. But that nowhere means you devoid your portfolio of a growth trajectory.
I truly believe that the best way to counter and thereby benefit from any market fluctuation is to invest in a systematic investment plan (SIP). A SIP is based on the idea of averaging your investment cost over time. It's the simplest and, yet, the most effective technique of benefitting from volatility. You invest a fixed amount every month and keep doing it for a long time.

When the markets drop, stock prices are low and so are the net asset values (NAVs) of equity mutual funds. Therefore, the sum you invest gets you more units of the fund. Eventually, when you redeem your money, all units fetch an equal amount. However, your gains are higher because of the volatile periods, when you were able to invest at a low price. That's an actual benefit from volatility.

Therefore, in May 2019 -- no matter who takes over the mantel at the central government, I am pretty sure if you follow these tactics, your investment portfolio will smoothly sail through the winds of the central elections.

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Source: Moneycontrol

HDFC Bank Q3 profit could rise 20%; asset quality could be stable


HDFC Bank is likely to continue to report over 20 percent growth in profit as well as net interest income year-on-year (YoY) with stable asset quality and a slight increase in provisioning due to IL&FS quarter-on-quarter (QoQ), analysts said.

"Bank should continue to deliver stable 20 percent YoY earnings growth on stable margins and loan growth. Other income could improve on treasury gains," Prabhudas Lilladher said, adding provisions could be slightly higher despite MTM gains as the bank could likely have exposure on IL&FS and could make provisions on the same.

Emkay said cost ratios will largely remain under current levels and that is structurally positive for return on assets. "Slippages to be similar to Q2; the impact of farm loan waiver on crop loans will be largely visible in Q4, while on Term Loans will be visible in Q3 itself."

Loan growth is expected to remain healthy at 25 percent YoY, driven by retail loans, while deposit growth is also likely to pick up to around 24 percent YoY, led by an increase in CASA and retail bulk deposits, according to Motilal Oswal.

"Asset quality is expected to remain stable, with GNPA at 1.3 percent. We estimate profit after tax to be at Rs 5,640 crore," an analyst at the firm wrote in their report.

Key issues to watch out for would be whether the management indicates some stress in SME and retail book; trends in digital banking/payments and various initiatives; overall balance sheet growth outlook and economic recovery, the research house said.

The stock has gained around half a percent in the past three days. At the close of market hours, HDFC Bank was quoting at Rs 2,131.20, up Rs 2.15, or 0.10 percent, on the BSE.

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Source: Moneycontrol

Thursday, 17 January 2019

Federal Bank Q3 net profit rises 28% YoY to Rs 333.63 crore; NII up 13%


Federal Bank reported a rise of 28 percent (year-on-year) in its net profit for the December quarter at Rs 333.63 crore from Rs 260 crore last year.

The Kochi-based lender also posted a growth of 13 percent (YoY) in its net interest income to Rs 1,077.3 crore against Rs 950 crore posted last year. For the uninitiated, the difference between interest earned and spent is known as net interest income.

Other income reported by the bank stood at Rs 345.5 crore against Rs 228.6 crore last year.

The gross NPA ratio rose margially to 3.14 percent from the previous quarter’s ratio of 3.11 percent. Meanwhile, the net NPA ratio stood at 1.72 percent. It improved from 1.78 percent in the previous quarter.

The gross NPAs stood at Rs 3,361 crore against Rs 3,185 crore posted during the last quarter. While, net NPAs rose to Rs 1,817 crore against Rs 1,796 crore last quarter.

The provisions reported a drop from the previous quarter to Rs 190.1 crore against Rs 289 crore. On a year on year basis, it reported a jump from Rs 162.4 crore.

Other key metrics

The lender reported slippages at Rs 435 crore against RS 477 crore last quarter. The SME slippages stood at Rs 192 crore against Rs 169 crore posted last quarter.

The net interest margin stood at 3.17 percent against 3.15 percent in September quarter.

The loan growth stood at 25 percent year on year, while its restructured book stood at Rs 1,150 crore.

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Source: Moneycontrol

Jet Airways tanks 5% even as the airline denies talks of Etihad investment at a discount


Shares of Jet Airways plunged more than 5 percent intraday on January 17 after the airline denied media reports that suggested that Etihad Airways could invest in the Indian airline at a discount.

Jet, in its statement to BSE, said that the company has been working on various cost-cutting measures, debt reduction and funding options including infusion of capital, monetisation of assets including the company’s stake in its loyalty program, in consultation with various key stakeholders.

"We refer to the various media reports concerning a communication alleged to have been sent by Etihad Airways PJSC to State Bank of India in relation to the resolution plan for Jet Airways (India) Limited (“Company”). At the outset, we hereby categorically state that nothing mentioned in the various media reports shall be deemed to be attributed to the Company and we also vehemently deny any discussions or disclosure on our part, with any media concerning the matter," said the Jet statement.

Further, pursuant to a delay in the payment of interest and principal instalment due to the consortium of Indian banks, led by State Bank of India (SBI), the company said SBI is in consultation with the other members of the consortium and the other stakeholders has been working on a comprehensive resolution plan towards a turnaround of the company for its sustained growth and restoration of financial health.

SBI also issued a statement clarifying it stance.

SBI spokesperson said, “We have seen some media reports on certain issues concerning a Resolution Plan for Jet Airways. This includes speculative reports on pricing relating to any possible investment in the Company”.

“In this connection, SBI would like to state that lenders are considering a restructuring plan under the RBI framework for resolution of stressed assets that would ensure a long term viability of the Company. Any such plan would be subject to approval of boards of the lenders and subject to adherence and clearance, if required, from the RBI and / or SEBI (takeover code, ICDR regulations etc.) and / or Ministry of Civil Aviation and in compliance with all regulatory prescriptions”

On January 16, Jet Airways shares plunged 8 percent after a media report said shareholder Etihad Airways offered to invest in the company at a price which is nearly half of January 15 closing price.

Sources told CNBC-TV18 that Etihad Group CEO Tony Douglas had written a letter to SBI Chairman on restructuring of the Indian airline.

As a part of restructuring, Etihad, which holds 24 percent stake in the Naresh Goyal-led company, would invest in Jet only at a price of Rs 150 apiece, which is nearly half of January 15 closing price of Rs 294.40.

At 0930 hours, Jet Airways was quoting at Rs 258.50, down Rs 12.50, or 4.61 percent on the BSE.

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Source: Moneycontrol

Friday, 11 January 2019

Market Live: Sensex rangebound ahead of Infosys Q3 results, Nifty holds 10,800


ITC shares gained 1.88 percent in morning after global brokerage house CLSA retained buy call on the stock and raised price target to Rs 400 from Rs 390 earlier due to unchanged in tobacco taxes. It implies more than 38 percent potential upside from Thursday's closing levels.

In the last 18 months, GST Council had more than 13 meetings but has not made any change in tobacco taxes, the research house said.

With elections now around the corner, further GST tax changes seem unlikely, according to CLSA.

Market Update Equities have extended their gains, with the Sensex rising nearly 100 points, with the Nifty trading near 10,850-mark. 

The Sensex is up 96.35 points or 0.27% at 36202.85, and the Nifty up 23.00 points or 0.21% at 10844.60. The market breadth is narrow as 805 shares advanced, against a decline of 635 shares, while 80 shares were unchanged.


TCS falls Share price of Tata Consultancy Services (TCS) was down 1.7 percent in the early trade on Friday on the back of Q3 numbers announced by the company on January 10.


BUZZING STOCK Shares of Himachal Futuristic Communication (HFCL) gained 5.8 percent intraday Friday after company won orders worth Rs 502 crore.

The company has received the purchase orders worth Rs 502.73 crore approximately from Larsen & Toubro and a consortium led by ITI for creating OFC Network Infrastructure under BharatNet Phase-II project in Andhra Pradesh and Maharashtra respectively.


Market opens It is a flat start to the market on Friday morning, with the Nifty holding 10,800-mark. 

The Nifty IT index is down around half a percent, with TCS dragging around 1 percent. Banks, consumption and metals were the other big gainers. The Nifty midcap index is up one-tenth of a percent. 

The Sensex is up 48.99 points or 0.14% at 36155.49, while the Nifty is higher by 9.10 points or 0.08% at 10830.70. The market breadth was positive as 301 shares advanced, against a decline of 115 shares, while 32 shares were unchanged.

Yes Bank and ITC are the top gainers, while TCS, Power Grid, and Bharti Airtel lost the most.


Rupee Update: The Indian rupee opened flat at 70.42 per dollar on Friday versus Thursday's close 70.41.

Market at pre-open: Benchmark indices are trading higher in the pre-opening session, with Nifty is around 10,850 level

The Sensex is up 125.95 points at 36232.45, while Nifty is up 39.70 points at 10861.30.

Shares of TCS gained 1.5 percent in the pre-opening trade after company reported a 2.6 percent sequential growth in December quarter profit at Rs 8,105 crore, with constant currency revenue growth of 1.8 percent QoQ meeting analyst expectations on Thursday

Crud Update: US oil prices edged down on Friday as concerns over economic growth were rekindled after talks fell short of offering concrete steps to end the Sino-US trade conflict, although OPEC-led production cuts bolstered sentiment in crude markets.


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Source: Moneycontrol

Friday, 4 January 2019

Stocks in the news: Torrent Power, Sun Pharma, Future Enterprises, NHPC, GM Breweries


Here are the stocks that are in news today:

GM Breweries Q3FY19 YoY
Revenue up 6% at Rs 124.6 crore versus Rs 117.9 crore
PAT down 25% at Rs 16.71 crore vs Rs 22.3 crore

Sun Pharma: The company completed transaction to acquire Pola Pharma

HDFC Standard Life Insurance: The firm received shareholder nod to appoint Vibha Padalkar as MD & CEO.

Torrent Power: The company won power distribution order in Thane for 20 years

NHPC: The company said that loss on Parbati-III power unit shutdown is at Rs 30.14 crore.

S Chand and Co - CARE reaffirmed long term rating to CARE AA-

Reliance Comm: The company filed contempt plea for non-grant of NOC by DoT for spectrum sale to Jio

Future Enterprises raises Rs 750 cr via NCDs

CESC declared as the successful bidder for appointment as distribution franchisee by Maharashtra State Electricity Distribution

Power Grid approved investment approval for 'Implementation of 500MVAr Thyristor Controlled Reactor at Kurukshetra 400kV bus' at an estimated cost of Rs 267.33 Cr

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Source: Moneycontrol

Wednesday, 2 January 2019

Kotak says equity market could return 10-15% in 2019, tweaks its portfolio


The year gone by proved to be quite volatile for equities compared to the spectacular run of 2017 (28 percent). However, it is notable that Indian equities still figured in the list of outperformers in both emerging as well as developed markets.

In 2018, India and Brazil were the only markets among emerging as well as developed countries that outperformed not only in local currency (3 percent and 15 percent, respectively) but also in dollar terms (negative 6 percent and 2 percent).

Despite multiple events lined up like state elections, US-China trade war, crude & rupee volatility, a liquidity crisis in NBFCs, mixed earnings etc, the market return was on expected lines, said experts who had forecast flat to single-digit return in 2018.

"The paltry 3 percent return for the Indian market (Nifty-50 Index) in INR terms and -6 percent return in USD terms simply reflects a bad starting point for the market in 2018 — (1) overvalued market and (2) overvalued currency," Kotak Institutional Equities said.

It further said the Indian market de-rated significantly through 2018 to 16.7X 12-month forward EPS from 20.1X at the beginning of 2018 and the INR corrected sharply against the USD along with most DM (developed markets) and EM (emerging markets) currencies.

The Indian rupee recovered sharply from its historic low of 74.45 to the dollar hit in October albeit to close the year down 9.5 percent at 69.76 a dollar.

Nonetheless, the Indian market was among the best performers in 2018 although the performance was varied across sectors and stocks, Kotak said.

The tide in terms of macro factors, especially crude, turned completely in favour of India as the country imports 80-85 percent of oil requirement. International benchmark Brent crude futures rallied sharply to $86 a barrel in October but oversupply and global growth concerns dragged it to around $50 levels, down 13.5 percent in 2018.

"Current macroeconomic conditions and valuations are quite supportive and drive our expectations of decent (10-15 percent) equity returns in 2019," Kotak said, adding the market is reasonably valued although the reasonable valuations reflect strong earnings revival over FY2019-21.

The first half of FY19 net profits of the Nifty 50 Index grew 12 percent, which imparts some confidence about FY19 profits, said Kotak which expects 14 percent growth for the current financial year and 27 percent in FY20.

"14 percent and 27 percent growth in the net profits of the Nifty-50 Index for FY19 and FY20, respectively, may look high but this largely reflects earnings revival in 'corporate' banks from a low base," the research house said.

On an ex-banks basis, it expects FY19 and FY20 net profits of the Nifty-50 Index to grow 9 percent and 14 percent, respectively.

Also, the rupee seems to be fairly valued, said Kotak which expects mild depreciation in 2019 compared to the sharp correction seen in 2018, it said.

Global and Indian equity markets will have to contend with several events in the first half of 2019.

"(1) The US Fed’s rate actions linked to the strength of the US economy will be a key variable; (2) The progress on China-US trade issues will be another variable; (3) the level of oil prices linked to further US action against Iran's oil exports will matter particularly for India's macro. (4) India will hold national elections in April-May 2019 and the outcome is quite uncertain post the strong performance of the main opposition party in recent state elections," Kotak detailed.

The research house made minor changes in its recommended large-cap model portfolio. It increased the weight of Axis Bank by 150 bps to 400 bps and reduced the weights for HDFC, Hindalco Industries and Mahindra & Mahindra by 40-70 bps to accommodate the increased weight of Axis Bank.

It added Cholamandalam to the recommended mid-cap model portfolio which covered stocks from several sectors - automobiles & components, banks, capital goods, diversified financials and gas utilities.

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Source: Moneycontrol

Monday, 31 December 2018

Social media poised for more scrutiny, greater checks in 2019


With great power comes great responsibility. The quote made popular by the iconic comic series 'Spider-Man' sums up the challenges that social media platforms like WhatsApp and Facebook are facing in India.

They have been accused of being a carrier of hate messages and fake news that incited mob violence. And, now they stare at the prospects of stricter government rules, greater accountability and regulatory scrutiny.

These platforms, for some of whom India is the biggest consumer base outside of their home country, can see very much clear the writing on the wall -- follow the rules of engagement if you want to be in the world's fastest growing economy.

The year 2018 will go down in history as the one where social networking platforms not only made country-specific changes -- be it labeling forwarded messages, limiting the number of people a user can send a message to at one go and launching public awareness campaign against fake news. They also agreed to store user data belonging to Indians within the country.

Globally, the tech and social giants scrambled to make efforts to mollify users with better control of their digital profile and data trail, as they faced backlash over data breaches. India market was no different.

Earlier this year, Facebook came under the regulatory glare after a global data leak scandal hit about 87 million users. British data analytics and political consulting firm Cambridge Analytica was accused of harvesting personal information of millions of Facebook users illegally to help political campaigns and influence polls in several countries.

Law and IT Minister Ravi Shankar Prasad warned the US social media giant of "stringent" action for any attempt to influence polls through data theft, even threatening to summon its CEO Mark Zuckerberg, if needed.

The IT ministry slapped two notices on Cambridge Analytica and Facebook over the data breaches. Facebook admitted that nearly 5.62 lakh people in India were "potentially affected" by the incident and rushed to tighten processes, to prevent a repeat.

But Cambridge Analytica continued to be evasive and in mid this year the Centre asked CBI to probe the alleged misuse of data of India's Facebook users by the British political consultancy firm.

Facebook, meanwhile, to bring transparency in political advertisements in the run-up to 2019 general elections, is making it compulsory for advertisers to disclose their identity and location before any such ad material can be run on the popular social media platform and Instagram.

Twitter, too, intensified its crackdown on fake and automated accounts and began removing suspicious accounts from users' followers to give a "meaningful and accurate" view of follower count.

But, it was Facebook-owned WhatsApp that faced the maximum heat after rumours circulating on the messaging platform incited mob fury and claimed over a dozen lives in various parts of the country. The toxic messages that spread on WhatsApp instigated riots in certain cases, as people forwarded and misinterpreted videos on the messaging platform.

Following government's warnings, WhatsApp recently named a grievance officer for India and announced the appointment of an India head -- a first for the country that accounts for most users across the world. It has launched a label that identifies forwarded messages and barred forwarding of messages to more than five people at one go.

As the Supreme Court voiced concerns over irresponsible content on social media, the government rushed to propose changes in IT Act's rules and released draft amendments which would require "intermediaries" to enable tracing of originators of information when required by government agencies.

In the political slugfest that ensued, the Congress alleged that if the amendments were cleared, there would be a tremendous expansion in the power of the "big brother" government on ordinary citizens, "reminiscent of eerie dictatorships". Some Cyberlaw experts have equated the changes in rules to India's own anti-encryption law.

The proposals require social media firms to deploy technology-based automated tools for proactively identifying, removing or disabling public access to "unlawful information or content".

If approved, these changes will place social media platforms -- even those like WhatsApp which promise users privacy and encryption -- firmly under government lens, forcing them to adopt stricter due-diligence practices.

The amendments -- which come ahead of the general polls in 2019 -- propose that platforms would have to inform users to refrain from hosting, uploading or sharing any content that is blasphemous, obscene, defamatory, hateful or racially, ethnically objectionable, or threatens national security.

When backed by lawful order, these platforms will have to, within 72 hours, provide assistance as asked for by any government agency. The IT ministry has met Facebook, WhatsApp, Twitter, Google and others to discuss the proposed changes and public feedback has been sought by January 15.

The seemingly-infallible tech behemoths are already being equated with big oil and big tobacco, in Western markets.

The larger question is whether the shifting public perception and recent moves by the government to regulate these habit-forming, new-age platforms would change the very essence of social media, once considered a harbinger of free speech and individual rights.

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Source: Moneycontrol