Niveshak January 2013 Issue with Page Flip version

Thursday, January 31, 2013 , Posted by Team Niveshak at Thursday, January 31, 2013

Dear Niveshaks,

The year 2012 witnessed many big events. The top in the list included passing of verdict on the long lasting debate over 2G scam, Facebook Inc. marking the third largest IPO in the history of US with an offer price of $38, LIBOR Scam hitting the global economy, suspension of the flying license of Kingfisher Airlines by the Aviation Sector regulator DGCA, leadership transition in China and last but not the least, the retirement of Mr. Ratan Tata. This issue brings to you ‘The Year That Was’ which takes you through the big happenings of 2012.
2013 marked its beginning with a growth forecast of around 2.4% by the World Bank for the world economy. According to a report, emerging economies will lead growth in 2013 as the global economic outlook remains challenged by the Eurozone’s debt crisis and high unemployment in the United States. Growth rates in and around Europe are expected to look weak over the next 12 months with an expected expansion of 0.2 percent in the Eurozone and 1.1 percent in the United Kingdom.
The GDP growth rate for Indian economy has been predicted to be around 5-6% by India’s Finance Minister P. Chidambaram. Due to the hike in import taxes on gold to 6% from 4%, the last week of January saw a reduction in imports. The government passed the decision of partially deregulating the diesel price allowing a hike of 40-50 paise a litre per month for retail customers and nearly Rs.11 for bulk consumers. This decision is expected to cut the subsidy bill by Rs.12900 crore on account of hike in price of fuel sold to bulk consumers like Railways and state transport undertakings.
With forward looking policy reforms like opening up of FDI in many sectors, formulation of Cabinet Committee on Investments and more such in the pipeline like GAAR and new banking licenses, the markets have entered the New Year with renewed zeal and optimism. In this issue’s Cover Story, we technically analyze the journey of Sensex so far and come up with buy and sell strategy for this year. A critical analysis and top picks for Banking and Auto sector have also been touched upon.
Further, the issue brings to you some more interesting and insightful issues. The Article of the month deals with the demerger decision taken by Wipro and Pantaloon and whether these decisions are a route to unlock value for the shareholders as well as the company. Other articles in this issue deal with Fiscal Cliff Deal being agreed upon by the US lawmakers and new banking licenses being issued by the Reserve Bank of India. The Finistory section takes you back to time of late 1920’s and tries to explain the causes and impact of the stock market crash of 1929. Lastly, the Classroom this month explains the concept of Ponzi schemes.
We would also like to thank our readers for their constant support through wonderful articles and appreciation. It is your endless encouragement and enthusiasm that keeps us going. Kindly send in your suggestions and feedback to and as always,

Stay invested,
Team Niveshak.
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