Niveshak April 2016 Issue with Page Flip version

Wednesday, May 11, 2016 , Posted by Team Niveshak at Wednesday, May 11, 2016

Dear Niveshaks,

Welcome to the FY17. The month created a lot of news but nothing much significant.With the world market and economy relatively stable, the benchmark Sensex rose by1.19% during the month.

There was one important move by the RBI which will have significant impact in the banking industry and it was the applicability of MCLR from April 1st, 2016. The move is aimed to reflect changes in the borrowing rate for the retail consumers whenever RBI changes its policy rate.

Also there are chances that after 2 years of drought, the country will have a normal monsoon. This is essential for a country like India where a large number of farmers are dependent on rain for irrigation.

The month also saw some moves by the government in the aviation sector. After Civil Aviation Policy is implemented, private players would be able to claim subsidy for regional routes. Also government has eased rules for local airlines to fly abroad. On Magazine front, our article of the month talks about the fall in the economy of Japan. It also analyses the important aspects of the Abeconomics and what went wrong. The article cautions the European economy to learn from the Japanese economy. The cover story analyses the journey of the Insurance sector in India and what are the different channels that have been adopted by the insurance companies. For FinGyaan, the author explains how weather derivatives instrument can be used to protect against possible fallout of the weather. The article explains how the pricing is done and the prospects for weather derivate instrument in India. Our FinRewind section has picked a yet another important event in the Indian economy history, which is LPG (Liberalisation, Privatisation and Globalisation) in India. The author illustrates what led to the decision of opening up of the economy and tries to answer whether we are better off or not. Finally FinSight section talks about the rising gap between the rich and the poor. This time we have an interview of Mr. Nimesh Manger, Regional Head, Agri Business, Gujarat at Ratnakar Bank. He talks about why financial sector has maintained a distance from the agriculture industry and what are the potential areas where there is huge opportunities for the industry to tap the market. The Classroom section explains the concept of Money Market Hedge. It is a simple technique which is used by traders and other players to hedge against the foreign exchange risk.

Finally, 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 gives us the vigour and vitality to keep working hard. We hope you had a great financial year and wish you the best for the new one.

Thank you. Stay invested!

Team Niveshak

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