We may have been blamed of being pessimistic for sharing all bad financial news and outlook with you through Niveshak since the collapse of Wall Street. Together we have tried to find the bull among the ruins of the Sub Prime. But we were chased by bears in all the financial markets from Kospi to Nasdaq. We were also overwhelmed by negative corporate financial results and unhealthy Macroeconomic reports in all the countries across continents.

But this time we have got some good news for a change. Markets are recovering. Yes, the bull is back, picking momentum and means serious business this time. All the major share markets have shown green figures on most occasions since 9th of March 2009. After writing off billions of dollars of toxic debt to US Treasury in the past quarters, some of the major US financial institutions are back in profits this quarter.

 India has gone a step further in giving positive data. When Kospi, Dow Jones Industrial Average, S&P 500, Nasdaq composite index , Euronext etc have grown by 15 to 25%, our very own Bombay Stock Exchange has shot up by 35% since 9th of March 2009. Most of India Inc’s financial results are out and all seem to have shown profits whereas some of their counterparts in the west have struggled. This may be the first signs of decoupling of the Indian Economy from the West but we may be far away from that.

 In the present issue we shall try to focus on another Institution which has been or at least seemed virtually unscathed from the financial crisis – Microfinance. We will try to study its growth over the years and evaluate its future prospects in rural India. As we begin to assume the departure of the crisis, we take a look at the impact the global slowdown had on Indian Private Equity players and its implications on India Inc. We shall try to understand the current recession under Minksy’s Hypothesis. This hypothesis states that bubbles and slowdowns are just a part of the economic boom and bust cycle.

 In the current crisis, US and European crisis were the worst sufferers. BRIC economies were also devastated to same proportions. This crisis may see these powerful economies loose the reigns of economic growth to the N-11 countries. How true are these assumptions? We may have an answer. We will also try to substantiate this study with an article on the Investment opportunities in Nigeria, one of these N-11 countries. This is the account of one of our friends who undertook his winter internship in Lagos, Nigeria.

 World Leaders met at the London G-20 conference and took a few steps to see the world out of crisis while the International Monetary Fund decided to float it reserve currency – Special Drawing Rights worth $250bn. Though the move is expected to help emerging economies with their Liquidity problems, some economists also feel that the allocation would add to the Inflation-related woes. We shall also try to analyse these news items and their implications.

 This issue marks the official launch of the blog. This blog will carry latest news from the world of finance along with all the archive files of Niveshak. You are cordially invited to discuss on the latest news and also provide you suggestions and reviews to make your Niveshak better.

 Happy Blogging.

(click on image or here to view)

1. Sensex completes 5-week winning streak, up by 455 pts

A host of positive factors helped the benchmark Sensex to complete one of the best winning rally in the five weeks since October 2007 and ended higher by another 455.03 points at a near 27-week high of 10,803.86 points during the shortened week.
In a stalwart five-week of advancing string, the Sensex recorded a gain of 2,478.04 points or 29.76 per cent, the biggest gains in five week since between August 20 and October 12, 2007 when it had risen by 4,276.52 points.

The Bombay Stock Exchange 30-share bellwether index gyrated in a range of 10,932.12 and 10,171.91 before ending the week at 10,803.86, a sharp rise of 4.40 per cent over its last weekend's close.

Similarly, the 50-issue Nifty of the National Stock Exchange also spurred by 131.00 points or 4.08 per cent to finish the week at 3,342.05 from its last weekend's close


2. Chicago Mercantile eyes India entry

The world’s biggest exchange, the Chicago Mercantile Exchange (CME) is looking at making an India foray by picking up equity stakes in the Indian exchanges, according to reports of Business Standard. CME is already in talks with several Indian exchanges for buying stakes in them. CME is also reportedly in talks with the Multi Commodities Exchange (MCX), some of the overseas investors in the National Commodity and Derivatives Exchange (NCDEX) and United Stock Exchange of India (USE).

CME operates two major exchanges C-Bot and Nymex. It provides futures and options products such as interest rates, equities, FX, commodities, and alternative investments such as weather and real estate

http://www.business-standard.com/india/news/chicago-mercantile-eyes-india-entry/354592/

3. Merrill Lynch Closes Japan Private Equity Office.

Bank of America's Merrill Lynch said on Tuesday that it had recently closed the Tokyo office of Merrill Lynch Global Private Equity, a major international investment arm of the U.S bank

MLGPE, founded in 1996, makes investments globally, with focuses on the United States, Europe, Japan, China, India, Latin America and Australia, according to its company web site

http://www.reuters.com/article/ousiv/idUSTRE5361KC20090407

4. Tata Motors to Get $200 Million from Standard Chartered

Tata Motors has received its first commitment to refinance the $2 billion bridge loan that that funded the Jaguar Land Rover (JLR) acquisition, with Standard Chartered Bank approving a $200 million loan. The company has to repay the entire bridge loan in June. Citi, SBI and Tata Capital are the lead arrangers for the refinancing

http://www.bloomberg.com/apps/news?pid=20601091&sid=aUd7YxmuijnQ&refer=india


5. DANONE SA to sell its entire stake in Britannia Industries Ltd.

France's Group DANONE SA has decided to sell its entire stake in Britannia Industries Ltd., giving the Indian biscuit maker's majority holding to a company belonged to the Wadia group. The Wadia group will fund the acquisition through group company Bombay Burmah Trading Corp. Ltd’s wholly owned subsidiary Leila Lands Ltd

Leila Lands Ltd. (Mauritius will buy 6.086 million equity shares, representing a 25.48% stake in Britannia Industries, on April 14 from DANONE’s U.K. unit Britannia Brands Ltd. The purchase will double Leila Lands' stake in Britannia Industries - India's top biscuit maker by sales - to 50.96%. The deal could end a long-standing dispute between DANONE and the Wadias of India's Bombay Dyeing Group over the French food company's plans to launch its products on its own in the Indian market, said analysts.

Under a 1995 contract, DANONE had agreed not to launch any food brands in India without the Wadia family's consent

http://www.livemint.com/2009/04/07001323/Wadias-Danone-agree-on-stake.html

6. Infosys fires 2,100 for poor performance

Infosys Technologies has fired 2,100 people across the country, after an annual performance appraisal exercise concluded mid-March.

http://economictimes.indiatimes.com/Features/TCSInfosysWipro/Infosys-fires-2100-for-poor-performance/articleshow/4387963.cms