1. EQUITY SELL – OFF
- News: The rupee on Monday fell to an all-time low of 77.44 against the U.S. dollar due to a sell-off in equities amid concerns over weakening global growth prospects, outflow of the dollar and on fears of further monetary tightening by central banks to counter rising inflation. The previous closing low for the rupee was 77.09, seen on March 7.
- About Equity Sell off:
- For investors, things are great when the prices of their investments are moving in an upward direction. Inevitably, though, the value of those investments will dip at one point or another.
- This is the nature of the market: ups and downs. A sell-off, however, is different.
- It is the accelerated selling of securities, including stocks, bonds, commodities, and currencies beyond the daily ebb and flow of market prices.
- The ability to identify a sell-off can be an extremely reliable resource to have in a time of market uncertainty.
- These signals can present themselves in various forms so be prepared to analyze a number of indicators.
2. SECTION 124A OF THE INDIAN PENAL CODE
- News: The Ministry of Home Affairs (MHA) on Monday informed the Supreme Court of its decision to “reexamine” and “reconsider” the sedition law in the background of Prime Minister Narendra Modi’s belief that the nation should work harder to shed “colonial baggage”, including outdated laws, while celebrating 75 years of Independence under the banner of ‘Azadi Ka Amrit Mahotsav’.
- About Section 124A of IPC:
- Section 124A of the Indian Penal Code lays down the punishment for sedition. The Indian Penal Code was enacted in 1860, under the British Raj.
- Section 124A forms part of Chapter VI of the Code which deals with offences against the state. Chapter VI comprises sections from 121 to 130, wherein section 121A and 124A were introduced in 1870.
- The then British government in India feared that Muslim preachers on the Indian subcontinent would wage a war against the government.
- Particularly after the successful suppression of Wahabi/Waliullah Movement by the British, the need was felt for such law.
- Throughout the Raj, this section was used to suppress activists in favour of national independence, including Lokmanya Tilak and Mahatma Gandhi, both of whom were found guilty and imprisoned.
3. TROPICAL CYCLONE
- News: Severe cyclonic storm ‘Asani’, which is moving towards the east coast, packing winds above 105 kmph and setting off heavy rain, is likely to recurve in a north-eastward direction and weaken gradually into a cyclonic storm, the India Meteorological Department (IMD).
- About Tropical Cyclone:
- A tropical cyclone is a rapidly rotating storm system characterized by a low-pressure center, a closed low-level atmospheric circulation, strong winds, and a spiral arrangement of thunderstorms that produce heavy rain and/or squalls.
- Depending on its location and strength, a tropical cyclone is referred to by different names, including hurricane tropical storm, cyclonic storm, tropical depression, or simply cyclone.
- A hurricane is a strong tropical cyclone that occurs in the Atlantic Ocean or north-eastern Pacific Ocean, and a typhoon occurs in the north western Pacific Ocean; in the Indian Ocean, south Pacific, or (rarely) South Atlantic, comparable storms are referred to simply as “tropical cyclones”, and such storms in the Indian Ocean can also be called “severe cyclonic storms”.
- “Tropical” refers to the geographical origin of these systems, which form almost exclusively over tropical seas.
- “Cyclone” refers to their winds moving in a circle, whirling round their central clear eye, with their winds blowing counter clockwise in the Northern Hemisphere and clockwise in the Southern Hemisphere.
- The opposite direction of circulation is due to the Coriolis effect. Tropical cyclones typically form over large bodies of relatively warm water. They derive their energy through the evaporation of water from the ocean surface, which ultimately condenses into clouds and rain when moist air rises and cools to saturation.
- This energy source differs from that of mid-latitude cyclonic storms, such as nor’easters and European windstorms, which are fueled primarily by horizontal temperature contrasts.
- Tropical cyclones are typically between 100 and 2,000 km (62 and 1,243 mi) in diameter. Every year tropical cyclones impact various regions of the globe including the Gulf Coast of North America, Australia, India and Bangladesh.
- The strong rotating winds of a tropical cyclone are a result of the conservation of angular momentum imparted by the Earth’s rotation as air flows inwards toward the axis of rotation.
MCQ FOR PRACTICE
- Which of the following will constitute Equity Sell off
Choose the correct option from below
- I, II and III
- II, III and IV
- I and III
- All are correct
- Which of the following contains Sedition law of India?
- Section 124
- Section 124A
- Section 377
- Section 78
- Consider the following statements regarding Tropical Cyclones
- They rotate Counterclockwise in southern hemisphere
- Rotation of the cyclone is due to Coriolis force
- Greater the temperature, stronger the cyclone.
Choose the correct option
- I and II
- II and III
- I and III
- All are correct