Niveshak January 2016 Issue with Page Flip version

Monday, February 1, 2016 , Posted by Team Niveshak at Monday, February 01, 2016

Dear Niveshaks,

A very Happy New Year. We welcome you to our first issue for this year. The month saw many ups and downs in the market. The Sensex started on a good note but that did not continue for the month. Crashing below the 24,000 marks, the Sensex finally recovered and ended by falling 1,320 points from the start. The volatility was mainly due to the external factors.

The month also saw reports by two major institutions pegging India’s growth on a rising path. Both World Bank and IMF said that India will be the fastest growing major economy in the world. They praised India for the reforms initiated by the government but cautioned that the World growth will also be affected by the slowing growth in the major developing economies of the world.
The IIP number released in the month showed contraction in the industrial production mainly led by the manufacturing sector. While CPI number shot up. Both these led to the dampening of sentiment among the investor community as they saw little prospect for the Rate-cut by the Rbi.

On a global front, falling Chinese economy continued to make headlines as the experts see more fall in the coming months. Oil is not showing any sign of revival. And to encourage more lending by banks, Bank of Japan has introduced negative interest rate. The rate will be charged on the incremental deposit that the banks will make to the central banks. The move will benefit emerging economies like India, where the cheap money will find its way for better returns. Also the stock market in India zoomed up on the day of announcement.

On the magazine front, our cover story is regarding the fall in the oil prices. Crashing from the highs of around $125 a barrel to $30 a barrel, the story shows how it is boon for some and bane for others. Article of the Month talks about the Masala Bond. Though little heard of about this type of bond, this is nothing but the issuing of foreign bonds in Indian rupees. The term got its due publicity after the Indian Railways decided to raise funds through this mechanism. FinGyaan section of the magazine talks about the Indian Banks and how they are in deep debt. The rising NPAs, especially of Public Sector Banks is a major cause of concern and the article talks about the issue. The newly introduced Fin Rewind section talks about the Energy Crisis of 1970s. The article takes a holistic view and see the situation from geo-political angle as well.

FinSight talks about the effect of the fall of commodity prices on India. The Classroom section gives the reader knowledge about the Exchange Traded Fund. FinView has the interview from Dr. S. Jayprakash, Co-Founder & Vice President of Nanobi Data and Analytics Pvt. Ltd. He talks about the insurance industry and how data-analytics can be used to catapult the insurance industry given the insurance market is still an untapped market in India.

To end this brief note, it’s important that we thank you, our readers, for your constant support and appreciation. Please continue to motivate us so that we can come out with more insightful reads in the issues to come. Keep it pouring in.

Thank you. Stay invested!

Team Niveshak

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