Niveshak December 2015 Issue with Page Flip version

Thursday, December 31, 2015 , Posted by Team Niveshak at Thursday, December 31, 2015

Dear Niveshaks,

The month of December started on a positive note with GDP growth accelerating to 7.4% in September quarter and with the expectation that the government would meet its fiscal deficit target for this fiscal, although the Seventh Pay Commission’s recom¬mendation would put burden on the government. The RBI also kept its Repo Rate unchanged, which was as expected, and the governor said he would be pushing for the new base-rate calculation formula.

The month also saw heated debate over GST with the Opposition demanding scrapping down the 1% inter-state sale levy and capping the GST rate to which the government has partly agreed to by including it into in the law. Also the e-commerce companies lobbied to the government to keep them outside of the GST purview.

With the upcoming 4G services, companies like Samsung and Micromax, largest smartphone sellers in India, have shifted their focus on the devices which run faster on 4G network. To strengthen its sellers’ network Flipkart announced that it will give small working capital loans to all its strong network of 80,000 merchants.

The five-year high 9.8% IIP number for October was a big positive for the economy which showed that the economy may be finally out of glut and rising. After two-weeks of negotiations, India finally made it clear in Paris that due to its development agenda it cannot turn back on the coal, though the country is committed to increase its dependence on renewable energy by seven-fold by 2022.

The month also saw the most awaited move by Federal Reserve which raised its rate by 25 bps for the first time in a decade. This ended the uncertainty in the market. Finance Minister Arun Jaitely introduced Insolvency and Bankruptcy in Parliament which will help in winding up of failed business in 180 days and is in line with the global practices.

The cover story is an analysis of the Federal Reserve rate hike and its impact on the Indian market. The Article of the Month (AOM) discusses about the inclusion of Yuan in the IMF Reserve Currency basket. It talks about the growth of Yuan and the effect of the inclusion on the Chinese economy as well as world economy.

FinGyaan talks about the Derivative market and how it functions and what could be its implication. While the FinSight section analyses the reason as to what led to the delay in the growth of India.

This time around we have incorporated a new section named FinRewind which will talk about the major financial happenings of the past. This section will try to analyze the situation both subjectively as well as objectively. This issue has the Impact of the Bretton Woods Conference as its topic.

FinView has the excerpts from Mr. Rajat Mishra, Sr. Vice President , SBI Capital Markets Ltd. who gives his view on the Fed rate hike and the investment climate in the country. Classroom section shares knowledge on Factoring and Forfaiting. 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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