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Niveshak July 2017

Posted by Team Niveshak on Monday, August 14, 2017 , under , , , , , |





Dear Niveshaks,

A lot has been happening around the World and in India as well. The Doklam standoff keeps everyone on their heels with India maintaining its calm and diplomacy. From the financial world, the SBI brought about a 50 basis point cut to its deposit rates which would hamper the amount of savings of the retail customers of the bank. The SEBI may ease the dispute settlement norms as requested by legal advisors and other stakeholders.

The fiscal deficit soared to 81% of FY18 target in April-June owing to an increase in the food, fertilizer, and fuel subsidy. As per the Moodys poll, India to grow at a modest 6.5-7.5% over 12-18 months before it reaches to the 8% GDP growth rate again. Infosys, TCS, Tech Mahindra see a shrink in the workforce for the first time, and the Snapdeal, Flipkart and Ola founders look at clawing back the lost ground from the investors.

The Cover Story for the month of July discusses the ‘Insolvency and Bankruptcy Code’ enacted by the Government in 2016. In the words of Arundhati Bhattacharya, Chairman, State Bank of India, “Going to the Insolvency and the bankruptcy Code would be the new normal.” This code was brought in existence to come up with a better solution to the prevalent NPA issue of the banks, safeguard their interests and the welfare of other creditors and various stakeholders. The Bankruptcy Code shall supersede all the other existing laws with regards to the issue of insolvency in the country. Keeping in mind the focus of the present Government at the ‘ease of doing business,’ this Code shall improve the ranking of India at the global level by reducing the time to sort the Insolvency issues in the country which accounts for a staggering 4.3 years to resolve presently.

The Article of the Month, ‘Universal Basic Income,’ talks about a problem quite germane to India and globally too. The idea of UBI (Universal Basic Income) stresses upon the importance of achieving social cooperation and justice as well as a robust financial system by reducing income disparities. The article further compares the UBI with the other prevalent top six welfare schemes of India, critically going through its advantages and limitations when pitted against them. It poses apposite questions of whether such schemes be implemented in India and is a fine read to the reading masses.

The FinSight and FinGyaan sections discuss of the ‘State of Economies of the World’ and ‘Tail Risk in Sub-prime Crisis’ respectively. FinGyaan deals with the problem of carrying a tail risk being acute especially in the modern financial system. It mentions of the sub-prime crises as a typical story of classic informational and distorted conflicting incentive problem among the stakeholders of the security market and underpricing of the tail risk leading to a financial disaster. The FinSight mentions of the macroeconomic scenario of the world, discussing of the slump in Oil prices, the present situation in the three major countries of South East Asia, China, India and Japan and their impact on the world economy.

In the FinaFame section, one gets to know more about Mohammad Yunus - The Man who was the visionary and developer of the one of a kind micro-credit idea, the Grameen Bank. Awardee of the Nobel Prize, the article takes the reader through the personalities life history and his achievements. The Classroom section of the July issue briefs the reader about the ‘Arbitrage Pricing Theory’ and how it helps in predicting an assets’ return using various risks attached to it.

Stay Invested!
Team Niveshak


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Niveshak June 2017

Posted by Team Niveshak on Saturday, July 15, 2017 , under , , , , , , , |






Dear Niveshaks,
This month has been quite an eventful one with the Prime Minister visiting and signing pacts with countries like the US and Israel which has both defense-related, bilateral trade benefits as well as economic impacts. The ongoing tussle with China and the renewed talk of make in India should boost consumption of domestically produces goods. The divestment approval for Air India serving a debt of over Rs 50,000 crore, is surviving on a taxpayer bailout. The Indian markets have been bullish, to say the least, and look all set to breach the highest tally ever. Amongst all of this, GST made the biggest impact in the month of June. The GST also addressed as the Good and Simple Tax by Mr. Modi was launched on the 31st of June and created maximum buzz by featuring the maximum number of times in the news portals, morning papers and the discussions of all and sundry.

That said, this month, we bring to you in our cover story another initiative that the present Government is likely to implement, ‘Will India make the shift to a new Financial Year.’ The article deals with a lot of potent questions and thoughts on the shift if it takes place, talks about the background of the current financial year and accounts for the pros and cons of the shift to the new financial year. The magazine team gives their opinions and suggestions on the shift while analyzing the move already implemented by the state of Madhya Pradesh in the conclusion section.

The Article of the Month raises a pertinent question, one that every Indian and Chinese resident ponders about with juxtaposed thoughts on the issue; ‘Can India replace China as a new superpower?’ A must read for the finance enthusiasts with comparisons drawn between the two countries on various topics including the GDP, population, and other macroeconomic factors. The FinSight and FinGyaan sections deal with ‘Capitalism, Inequality and Sustainable Development’ and ‘Indian Pharma – An Ambivalent Aura.’ The articles talk about inequality as a result of the widening
gap between the rich and poor as a result of capitalism and how it affects the sustainable growth of the world. The FinGyaan section deals with the Indian pharma sector; its impact on the Indian economy, GST’s influence on the pharma industry, the importance of US markets for Indian pharma division and the technological innovations in the industry.

In the FinaFame section, you get to read about Sanford I. Weill - The Man Who Invented Financial Supermarket (an institution or a company which offers a full range of financial services under one roof) that includes insurance, underwriting, stock brokerage services apart from a gamut of banking services. The Classroom section shall further your knowledge on ‘triple witching,’ an event that occurs when the contracts for stock index futures, stock index options, and stock options expire on the same day.

Have a fun time going through the various sections of the magazine. We hope you enjoy reading and give us your valuable feedback on what you expect to read in the upcoming volumes.

Stay Invested!
Team Niveshak


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Niveshak May 2017

Posted by Team Niveshak on Sunday, June 25, 2017 , under , , , , |





Dear Niveshaks,

This month we bring to you the most talked about Flipkart and Snapdeal merger as our cover story. The e-commerce sector in India is rapidly evolving and growing in leaps and bounds. The proliferation of many e-commerce startups from 2009 has resulted in tough competition in this sector and none of the startups have been able to witness any profits from their inception. In this light a merger has been proposed between two of major home grown e commerce players of the country – Snapdeal and Flipkart, which are funded by Soft Bank. This merger will lead to a mammoth company
which can take on Amazon - a multi billionaire funded e commerce giant in India.

Article of the month talks about how states are plagued with massive debts and what’s in stake for them. If the states continue to run their budgets in such huge debts, the economy will turn to an unsustainable one. Fin Gyaan throws some light on the concept of Universal Basic Income and its costs implications on the government, if implemented. FinSight throws light on how to revive the private investments in India.

For FinView we got the interview of Somak Gosh, Managing Partner at Contrarian Capital on the future of startup space in India. The classroom touches on the concept of “Winner’s Curse”, which is explained at length. The TMTW section covers news on the fall of Sun Pharma stocks, Implications of GST, changes to the fiscal year for MP to align it with the international standards.


Finally, we would like to thank our readers for their immense support and encouragement. You remain our prime motivating factor that keeps our spirits high and gives us the vigor and vitality to keep working hard. We hope you had a great month and wish you the best for the new one.
To end this brief note, we would like to thank our readers for their immense support and encouragement. You remain our prime motivation factor that keeps our spirits high and give us the vigor and vitality to keep working hard.

Stay Invested!
Team Niveshak


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Niveshak April 2017

Posted by Team Niveshak on Monday, May 8, 2017 , under , , , , , , |





Dear Niveshaks,

This month, we want to start with a thank you to all our magazine readers and content contributors for your relentless support and encouragement. The quality and number of articles we have been receiving is steadily growing and it has become a painstakingly difficult task for us to select the best of those articles. Indeed we are also happy to know that a lot of companies and their employees also follow our magazine.

The last month had been quite an eventful one for the Indian stock markets, it has seen its all-time high and the momentum still continues as I write this editorial. It’s a pleasing sight for the traders and short term investors to see the prices of a vast majority of stocks rise to such heights. It goes without saying, a low tides follows the high, Investors have to be cautious and doubly careful in case they are planning to take any fresh long positions in the current market scenario. The rise was mainly driven by the strong earnings reports from major banks like ICICI, Yes Bank, Indian Bank and the likes. Policy measures also fueled the euphoria in markets. We also witnessed merger talks of two large e-commerce players in the country – Flipkart and Snapdeal, this merger could be a turning point in the e-commerce battlefield pitting Flipkart against the Global player Amazon, as stronger competitor than before.

We have the French elections due on 7th May, has been covered in the Article of the Month. The battle is between two major contenders, Le Pen – A Protectionist leader of France’s far right political wing and Emmanuel Marcon – A former Investment banker, leading ‘En Marche!’ It will be interesting to see, if people of France will surprise the world just like people from USA did or will they choose the more liberal and well supported Investment Banker.

In this version we also publish RERA: The Real Estate Sector Finally gets a Watchdog, which touches upon the salient features of the act along with discussing what changes we can expect in the real estate sector due to this landmark act, which has been long overdue. In the FinFame you are about read about the most Successful Value Investor in the last century – Warren Buffet. His life, his principles, his investing style continue to inspire anyone who wishes to venture into the stock markets. In the Classroom, we make an attempt to explain the Modern Portfolio theory for those who are not aware of it, and to those who are already aware of it, it would be a revision.

We hope you enjoy reading our magazine and give us your valuable feedback on what you expect to read in the upcoming volumes.

Stay Invested!
Team Niveshak


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Niveshak March 2017

Posted by Team Niveshak on Friday, April 14, 2017 , under , , , , , , , , |





Dear Niveshak,

This month we bring to you Race for the Summit – Vod an Idea as our special coverage. The Telecom Sector of India is creating buzz after buzz in the markets of the Nation and the World of Finance. With the merger of Reliance Communications with Aircel and inception of Reliance Jio, it’s the turn of Idea and Vodafone to upsurge the thrill in the Telecom Sector of the Country with an estimated $23 billion merger between the two heavyweights of the Industry. However, even with the merger, one of
their major shortcomings will be the lack of the optical-fibre reach to the customers. Hence, how does this merger unfold for the telecom giants is yet to be seen!

The government recently launched a very ambitious Direct Tax Dispute Resolution Scheme in the budget 2016-17. However, the scheme failed miserably garnering just around Rs.1,200 crore as compared to around 2.6 lakh pending tax cases that have close to Rs.5.16 lakh crore locked in. None of the high-profile retrospective tax cases that involved firms like Vodafone & Cairn Energy opted to settle under this scheme.

Emphasizing on infrastructure development, India is also seeking a funding amounting to around $2 billion from the NDB (New Development Bank) for its infrastructure projects and has urged the multi-national bank for a faster disbursement of loans, as per a statement released by our Finance Minister, Mr. Arun Jaitley. On the magazine front, the Article of the Month talks about the revolution of impact investing in India. Impact Investing has witnessed an unprecedented rise since 2007 and is expected to continue for the times to come. However, the responsibility to drive change for social betterment cannot be left on the shoulders of the government alone. The corporate houses need to be equally responsible if we want to make an impact at the bottom of the pyramid in the coming years.

In the FinSight, the author aims to discuss one the most important question of our time, ‘Is there any alternative to the China model of growth for India?’ With the global economy going through a massive transition, the world’s eyes are set on the BRIC and MINT countries, waiting for them to emerge as the new economic superpowers. However, with China slowing down and India showing no super-normal growth as expected from it, the economists and industrialists are cogitating over and over again, as to what is in store for India after all.

In the FinGyaan section, the author talks about the harmful effects of low interest rates on an economy. The author starts by asking a few simple questions; How low is low? What is low for a mature and developed economy and what is the definition of low for an emerging economy? Then he moves on to discuss the impact of low interest rates on banks, financial institutions and markets. The classroom section talks about Purchasing Power Parity (PPP) which is an indicator of the value of currency. It will help the readers in developing a perspective by explaining the concept as well as its practical application.

Finally, we would like to thank our readers for their immense support and encouragement. You remain our prime motivating factor that keeps our spirits high and gives us the vigour and vitality to keep working hard. We hope you had a great month and wish you the best for the new one.

Stay Invested!
Team Niveshak


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Niveshak February 2017

Posted by Team Niveshak on Tuesday, March 14, 2017 , under , , , , , , , |





Dear Niveshak,

This month we bring to you Donald Trump – The Era of Uncertainty as our special coverage. Economy will be at the top of Trumps agenda as President and will serve as the most important barometer of his performance. His business origins and his affluent lifestyle will have a huge impact on what he perceives the country to Trump hallmarks are his unaccountability and impulsive remarks which have become his primary identification marks.

After enjoying the upshots of Demonetization for few months, Paytm recently raised another $200 million from Alibaba Group Holding and the venture capital fund SAIF Partners in order to expand its online retail business in the domestic market, which is predominantly conquered by Flipkart and Amazon. The deal is expected to value Paytm E-Commerce at close to $1 billion.

On the regulatory front, the Securities and Exchange Board of India (SEBI) plans to further tighten the regulations for algorithmic trading to minimize instances of misuse of such systems that can be used to execute complex trading strategies at a very high speed.

On the magazine front, the Article of the Month talks about the fault lines in the world economy as a whole, pondering upon various important questions such as what went so wrong that the American people, who have long championed liberalism and free markets are suddenly building walls all around? Why are the British people so eager to leave the EU? Why are so many European countries angry with the world? Why is Japan, once the hallmark of growth, striving endlessly to come out of a bruised and stagnant economic rut? And more broadly, why has the global economy and demand become so sticky that no matter how much money is pumped into it, there are no visible signs of a robust growth? Hence, the author is determined to find out the reasons why the world economy is behaving the way it is and what role does the political risk is playing in all this.

In the Finsight, the author talks about the most coveted work visa i.e. H-1B visa which is an employment based, non-immigrant visa in the United States and allows US employers to temporarily hire foreign workers in speciality occupations. However, with the recent undergoing reforms in the Trump regime, the Indian economy is expected to take a hit as India happens to be the largest recipient of H-1B visas in the world. In the FinGyaan section, the author talks about the Financial Health Clinics, which are the organizations specifically providing services to the sick industries for their revival. The main motive of these type of organizations is to provide the preventive and revival strategies which will create a safe guard to the sick industries by providing them a turnaround measures to follow for financial restructuring. The classroom section specifically talks about IPO valuation and the risks associated with an IPO. It will also help in developing a perspective as to how the valuation and done and what are the different factors that affect an IPO valuation.

Finally, we would like to thank our readers for their immense support and encouragement. You remain our prime motivating factor that keeps our spirits high and gives us the vigour and vitality to keep working hard.

We hope you had a great month and wish you the best for the new one.

Stay Invested!
Team Niveshak


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Niveshak January 2017

Posted by Team Niveshak on Tuesday, February 7, 2017 , under , , , , , , , |




Dear Niveshaks,

We hope that the first month of the year brought with it the spirit of starting afresh and realizing your dreams for you. This month saw Donald Trump officially coming to power as the 45th President of the United States, an event that could drastically change the way economies across the world operate with each other. The Economic Survey 2017 presented by the Finance Minister of India, Mr. Arun Jaitley, observed that the Indian Economy is still growing strong with relatively low inflation, fiscal discipline and a stable rupee-dollar exchange rate. With more currency notes being pumped in and withdrawal limits being gradually relaxed, this month also brought some relief for the cash-starved common people.

On the global front, Japan threatened to take India to the WTO, alleging that India’s restrictions over steel imports have halved Japan’s exports to our country – a step that could trigger more trade spats in the future which seems already vulnerable with high global tensions over steel and other commodities. The newly elected US President Donald Trump’s bold moves over US Visa and immigration rules also brought some turmoil for the US companies.

Our cover story for the month brings a comprehensive and exhaustive review of the Budget 2017 which was presented on February 1, throwing light on the possible implications it might have for the different sectors of our economy, while also identifying the areas that were overlooked in the budget. The Article of the Month on the Venezuelan Economic Crisis, which happens to be one of the most profound economic crises in recent history, tries to look into what led to this drastic change in fortunes for one of the star performers in Latin America. Under FinGyaan, “The Trident to Slay the NPAs” elucidates one of the most critical problems that the Indian Banking Sector is struggling with, explaining the 3 R method – Recognize, Reserve & Resolve - a modern approach adopted by the banks to deal with the problem.

Under the FinSight column, the author writes about the deregulation of Savings Bank Interest Rate – identifying is as a Slow Poison in Indian Banking sector. The FinaFame section highlights the immense contributions brought to the field of global finance by Jim O’Neill – the ex-chairman of Goldman Sachs Asset Management (GSAM). The article under FinView offers detailed insights into shares with differential voting rights, and evaluates whether or not are they a good investment opportunity; whereas Classroom for the month would educate the readers about Beta – one of the most commonly thrown terms in the field of Finance.

To end this brief note, we would like to thank our readers for their immense support and encouragement. You remain our prime motivation factor that keeps our spirits high and give us the vigour and vitality to keep working hard.

Thank you. Stay invested!
Team Niveshak


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