Niveshak July 2014 Issue with Page Flip version
Friday, August 1, 2014 , Posted by Team Niveshak at Friday, August 01, 2014
Dear Niveshaks,
The month of July 2014 saw a lot of company
declaring Q1 2014 results starting with Infosys. A lot of them beat the market
expectations and the stock market indices had a roller coaster ride. The Nifty
ended July series F&O at 7721.30, down 70.10 points. The Sensex fell 192.45
points or 0.7 percent at 25894.97. Banks were hurt most in the last trading day
of July 2014.
A major initiative during the month was the New Development Bank
(NDB). The New Development Bank (NDB), formerly referred to as
the BRICS Development Bank, is multilateral development bank operated by
the BRICS states (Brazil, Russia, India, China and South Africa) as an alternative
to the existing World Bank and International Monetary Fund. The Bank is setup to foster
greater financial and development cooperation among the five emerging markets.
It will be headquartered in Shanghai, China. Unlike
the World Bank, which assigns
votes based on capital share, in the New Development Bank each participant
country will be assigned one vote, and no countries will have veto power.
The cover story of this issue delves deep into the growing role of
the BRICS to help these economies recover fast from the global financial
crisis. On the international front, we had the news of Alibaba IPO, which is
the biggest name on the 2014 IPO market, because it will easily raise the
most money of any initial public offering this year. The Article of the Month
(AOM) discusses about the India’s next Alibaba, i.e. Flipkart. It has been
doing well by peaking at the right time and the recent acquisition of Myntra is
a live example. The major question that is haunting the company is
profitability. Once the company gets its internal controls right and is able
diversify into related products and platforms, there is no reason why the
company cannot be profitable. There are huge expectations related to the growth
of the company and the company cannot falter in this process.
FinSight discusses the impact of SEBI’s measures to boost the
primary market in India. SEBI has proposed compulsory 25% public shareholding
for all listed public sector undertakings (PSUs) within three years and
unveiled new norms for research analysts, employee stock option schemes as well
as reforms to boost the primary market. FinGyaan article on GAAR (General Anti
Avoidance Rules) talks about the nuances of the same from an Indian
perspective. FinView has the excerpts from Mr. Neeraj Sehrawat, Assistant
Professor, University of Delhi, who gives his views on the Union Budget and
GST. Classroom section shares knowledge on stock splits. 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.
Thank you.
Stay invested!
Team Niveshak
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