Niveshak February 2015 Issue with Page Flip version

Saturday, February 28, 2015 , Posted by Team Niveshak at Saturday, February 28, 2015

Dear Niveshaks,
The month of February has seen many events taking place in India in politics, economics as well as in the corporate sector. Results of Third quarter earnings declared this month ended up disappointing the investors as annual profit growth has been the worst in last five quarters, with the aggregate net profit of 2,941 companies declining 16.9 per cent.
The January WPI inflation dropped to a five and a half year low of -0.39% on falling prices of manufactured products and fuel items. Inflation in fuel and power segment was negative at -10.69%, while for manufactured products it was 1.05%. On the Make in India front, PM Narendra Modi inaugurated American multinational General Electric’s (GE) first manufacturing plant in India. The plant will manufacture a range of diversified products for sectors such as energy, aviation, and oil & gas transportation. On the e-commerce front, Alibaba signed a deal to buy a 25% stake in Indian mobile payments and ecommerce platform Paytm. On the political front, AAP leader Arvind Kejriwal took oath as the eighth chief minister of Delhi, promising to make Delhi the first corruption-free state and act against communal elements. The AAP had won 67 of the 70 seats in Delhi decimating Congress and leaving only three seats for the BJP. The government announced the a capital infusion of Rs 6,990 crore in nine state run banks based on new efficiency parameters such as
return on assets and return on equity.

US technology giant Apple Inc. became the first company to reach a market value of $700 billion. Earlier in January 2015, Apple Inc had recorded highest quarterly profit of 18 billion US dollar in corporate history worldwide after the company sold 74.5 million iPhones in quarter ending December 2014.

The government changed the base year for GDP calculation from 2004-05 to 2011-12. This resulted in sharp revision of the India’s 2013-14 GDP growth numbers to 6.9% from 4.7%. The cover story of this issue delves deep into parameters behind GDP revision providing various angles to look at this revision. Flipkart is gearing up to raise the largest Indian IPO by raising $4 billion dollars. Our article of the month discusses the valuation of Flipkart and the hypothesis of it being overvalued. In 2013-14, India had topped the chart of remittance inflows, by receiving a whopping $69.6 billion, followed by China with $60 billion and the Philippines with $25 billion.

Fingyan article Outside Money – Inside Economy will take you through the intricacies of remittance and its impact on the Indian economy. Finsight discusses the impact of Basel III norms on the Banking sector. FinView has the excerpts from Dr. Madalasa Venkataraman who gives her views on Real Estate Investments. Classroom section shares knowledge on Swaps.

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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