Showing posts with label January. Show all posts
Showing posts with label January. Show all posts
Niveshak January 2017
Posted by Team Niveshak
on
Tuesday, February 7, 2017
, under
2017,
Budget-2017,
Finance Club,
FinDrishti,
January,
News,
NIveshak Investment FUnd,
TMTW.News
|
We hope that the first month of the year brought with it the spirit of starting afresh and realizing your dreams for you. This month saw Donald Trump officially coming to power as the 45th President of the United States, an event that could drastically change the way economies across the world operate with each other. The Economic Survey 2017 presented by the Finance Minister of India, Mr. Arun Jaitley, observed that the Indian Economy is still growing strong with relatively low inflation, fiscal discipline and a stable rupee-dollar exchange rate. With more currency notes being pumped in and withdrawal limits being gradually relaxed, this month also brought some relief for the cash-starved common people.
On the global front, Japan threatened to take India to the WTO, alleging that India’s restrictions over steel imports have halved Japan’s exports to our country – a step that could trigger more trade spats in the future which seems already vulnerable with high global tensions over steel and other commodities. The newly elected US President Donald Trump’s bold moves over US Visa and immigration rules also brought some turmoil for the US companies.
Our cover story for the month brings a comprehensive and exhaustive review of the Budget 2017 which was presented on February 1, throwing light on the possible implications it might have for the different sectors of our economy, while also identifying the areas that were overlooked in the budget. The Article of the Month on the Venezuelan Economic Crisis, which happens to be one of the most profound economic crises in recent history, tries to look into what led to this drastic change in fortunes for one of the star performers in Latin America. Under FinGyaan, “The Trident to Slay the NPAs” elucidates one of the most critical problems that the Indian Banking Sector is struggling with, explaining the 3 R method – Recognize, Reserve & Resolve - a modern approach adopted by the banks to deal with the problem.
Under the FinSight column, the author writes about the deregulation of Savings Bank Interest Rate – identifying is as a Slow Poison in Indian Banking sector. The FinaFame section highlights the immense contributions brought to the field of global finance by Jim O’Neill – the ex-chairman of Goldman Sachs Asset Management (GSAM). The article under FinView offers detailed insights into shares with differential voting rights, and evaluates whether or not are they a good investment opportunity; whereas Classroom for the month would educate the readers about Beta – one of the most commonly thrown terms in the field of Finance.
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!
Niveshak January 2016 Issue with Page Flip version
Posted by Team Niveshak
on
Monday, February 1, 2016
, under
2016,
Finance Club,
IIM Shillong,
January,
NIveshak Investment FUnd
|
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
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
Niveshak January 2015 Issue with Page Flip version
Posted by Team Niveshak
on
Saturday, January 31, 2015
, under
2015,
Finance Club,
IIM Shillong,
January,
Niveshak,
NIveshak Investment FUnd
|
Dear Niveshaks,
With this first issue of 2015, we wish our readers a very happy and prosperous new year. The month of January saw SENSEX increase by 7.5% from the 2014 year end. This shows that the investors are continually looking towards Indian economic growth in future with positive sentiments.
Niveshak January 2014 Issue with Page Flip version
Posted by Team Niveshak
on
Friday, January 31, 2014
, under
2014,
Finance Club,
IIM Shillong,
January,
Niveshak
|
Dear Niveshaks,
With yet another issue of Niveshak, we wish you
an ebullient and wonderful year ahead. Amidst relentless cold waves, January
has been an eventful month. Starting with social networking, 30 million users
were added to the cross platform app, WhatsApp, in January. With 430 million
users, it poses direct competition to SMS.
Niveshak January 2013 Issue with Page Flip version
Dear Niveshaks,
The year 2012 witnessed many big events. The top in the list included passing of verdict on the long lasting debate over 2G scam, Facebook Inc. marking the third largest IPO in the history of US with an offer price of $38, LIBOR Scam hitting the global economy, suspension of the flying license of Kingfisher Airlines by the Aviation Sector regulator DGCA, leadership transition in China and last but not the least, the retirement of Mr. Ratan Tata. This issue brings to you ‘The Year That Was’ which takes you through the big happenings of 2012.
2013 marked its beginning with a growth forecast of around 2.4% by the World Bank for the world economy. According to a report, emerging economies will lead growth in 2013 as the global economic outlook remains challenged by the Eurozone’s debt crisis and high unemployment in the United States. Growth rates in and around Europe are expected to look weak over the next 12 months with an expected expansion of 0.2 percent in the Eurozone and 1.1 percent in the United Kingdom.
The GDP growth rate for Indian economy has been predicted to be around 5-6% by India’s Finance Minister P. Chidambaram. Due to the hike in import taxes on gold to 6% from 4%, the last week of January saw a reduction in imports. The government passed the decision of partially deregulating the diesel price allowing a hike of 40-50 paise a litre per month for retail customers and nearly Rs.11 for bulk consumers. This decision is expected to cut the subsidy bill by Rs.12900 crore on account of hike in price of fuel sold to bulk consumers like Railways and state transport undertakings.
With forward looking policy reforms like opening up of FDI in many sectors, formulation of Cabinet Committee on Investments and more such in the pipeline like GAAR and new banking licenses, the markets have entered the New Year with renewed zeal and optimism. In this issue’s Cover Story, we technically analyze the journey of Sensex so far and come up with buy and sell strategy for this year. A critical analysis and top picks for Banking and Auto sector have also been touched upon.
Further, the issue brings to you some more interesting and insightful issues. The Article of the month deals with the demerger decision taken by Wipro and Pantaloon and whether these decisions are a route to unlock value for the shareholders as well as the company. Other articles in this issue deal with Fiscal Cliff Deal being agreed upon by the US lawmakers and new banking licenses being issued by the Reserve Bank of India. The Finistory section takes you back to time of late 1920’s and tries to explain the causes and impact of the stock market crash of 1929. Lastly, the Classroom this month explains the concept of Ponzi schemes.
We would also like to thank our readers for their constant support through wonderful articles and appreciation. It is your endless encouragement and enthusiasm that keeps us going. Kindly send in your suggestions and feedback to niveshak.iims@gmail.com and as always,
2013 marked its beginning with a growth forecast of around 2.4% by the World Bank for the world economy. According to a report, emerging economies will lead growth in 2013 as the global economic outlook remains challenged by the Eurozone’s debt crisis and high unemployment in the United States. Growth rates in and around Europe are expected to look weak over the next 12 months with an expected expansion of 0.2 percent in the Eurozone and 1.1 percent in the United Kingdom.
The GDP growth rate for Indian economy has been predicted to be around 5-6% by India’s Finance Minister P. Chidambaram. Due to the hike in import taxes on gold to 6% from 4%, the last week of January saw a reduction in imports. The government passed the decision of partially deregulating the diesel price allowing a hike of 40-50 paise a litre per month for retail customers and nearly Rs.11 for bulk consumers. This decision is expected to cut the subsidy bill by Rs.12900 crore on account of hike in price of fuel sold to bulk consumers like Railways and state transport undertakings.
With forward looking policy reforms like opening up of FDI in many sectors, formulation of Cabinet Committee on Investments and more such in the pipeline like GAAR and new banking licenses, the markets have entered the New Year with renewed zeal and optimism. In this issue’s Cover Story, we technically analyze the journey of Sensex so far and come up with buy and sell strategy for this year. A critical analysis and top picks for Banking and Auto sector have also been touched upon.
Further, the issue brings to you some more interesting and insightful issues. The Article of the month deals with the demerger decision taken by Wipro and Pantaloon and whether these decisions are a route to unlock value for the shareholders as well as the company. Other articles in this issue deal with Fiscal Cliff Deal being agreed upon by the US lawmakers and new banking licenses being issued by the Reserve Bank of India. The Finistory section takes you back to time of late 1920’s and tries to explain the causes and impact of the stock market crash of 1929. Lastly, the Classroom this month explains the concept of Ponzi schemes.
We would also like to thank our readers for their constant support through wonderful articles and appreciation. It is your endless encouragement and enthusiasm that keeps us going. Kindly send in your suggestions and feedback to niveshak.iims@gmail.com and as always,
Stay invested,
Team Niveshak.
(click on image or here to view)
Niveshak January 2012 Issue
Dear Niveshaks,
2011 has not been very pleasant for the business world, as majority of both the developed and the developing nations have failed to experience rampant growth. Come 2012, we are again heading for a bumpy economy, and the harbingers of growth seem to be miles away.
The Euro Zone occupied the center-stage in the geo politics arena for almost the entire year. The repercussions of the debt of these countries have been felt by economies all across the globe. While the depth and duration of the slowdown in the European Union being difficult to be quantifiable, a continued credit crunch, sovereign-debt problems, lack of competitiveness, and fiscal austerity imply serious problems. The United States, which was on the brink of another major slowdown in 2011, has of late shown signs of recovery, both in terms of output and employment.
The outlook for the developing economies doesn’t seem to be very encouraging. The South East Asian giants- India and china have been revising its growth objective from time to time, and growth in china has been curtailed to a single figure level. India has been battling with a low Industrial production and inflation in the latter half of the year, and the depreciation of the home currency has been a major concern. However, with a spur in NRI deposits, owing to deregulation of NRI deposit rates, and the hefty selling of dollars by the reserve bank, the rupee has become is emerging. The Industrial production data for the month of November has provided a ray of hope, and all the efforts of the government in combating inflation are finally bearing fruit. Amidst such a situation, the World Bank has slashed the world GDP growth forecast for 2012 to a paltry 2.50%, and 3.40% for 2013. Given the uncertainty prevailing, and importance of euro zone in international business, the future of euro will play be a major role in determining how the world economy will shape up in this year. Thus, the coming year will yet again test the mettle of our economists, financial analysts and business tycoons. The Euro Zone occupied the center-stage in the geo politics arena for almost the entire year. The repercussions of the debt of these countries have been felt by economies all across the globe. While the depth and duration of the slowdown in the European Union being difficult to be quantifiable, a continued credit crunch, sovereign-debt problems, lack of competitiveness, and fiscal austerity imply serious problems. The United States, which was on the brink of another major slowdown in 2011, has of late shown signs of recovery, both in terms of output and employment.
This issue brings to you an exclusive view on the credibility of accountants in the contemporary world. This issue also features an exclusive interview with Mr. Swapnil Dakshindas, a Senior Manager at one of the Big Four Audit firms. The article of the month throws light on the appreciation of yen, and this issue also features other articles on Gold as a lucrative investment, commodity markets and the viability of ‘Real Estate Investment Trusts’ as an investment avenue. The classroom section explains the concept of ‘Insider Trading’.
We would like to thank all the readers for their valuable articles, crossword entries and appreciation e-mails. It is only because of readers’ constant support and encouragement that Niveshak has been such a great success. On these closing thoughts, I on behalf of the entire team of Niveshak would like to wish you all a happy and unforgettable 2012.
Please send in your suggestions and feedback at niveshak.iims@gmail.com and as always,
Stay invested.
Team Niveshak
(click on image or here to view)
Niveshak January 2011 Issue
Dear Niveshaks
The year 2011 has started on an unexpected note with the emerging markets coming down and the developed markets, like that of Europe and the US scaling up. This is not entirely surprising given the fact that the emerging markets outperformed the developed markets throughout 2010. The Indian markets, in particular, were clear outperformers with the benchmark Sensex moving up by over 3000 points during 2010 on the back of impressive FII inflows and a robust domestic economy. However, with the advent of 2011, the problems of rising inflation and a slump in industrial production brought the Indian markets down with the BSE Sensex falling about 2000 points below the 2010 highs. With the RBI policy review and the budget coming up, it would be interesting to see what steps our policy makers take in order to curb inflation and yet not hurt the growth. On the international front, we saw China surpassing Japan in terms of GDP last year. The United States embarked upon QE2 to revive its staggering economy. It would be interesting to see in 2011 if the QE2 actually kick starts the US economy. If QE2 works, then it would be the first time that such a monetary policy will work for a nation. On the negative side, QE2 poses a serious risk of asset bubble creation in emerging markets such as India and China. The Euro debt crisis was another major thing that dominated the headlines last year. The monetary and fiscal steps taken by European nations to resolve the crisis would be a significant thing to watch out for in 2011.
The first edition of 2011 will be incomplete if we don’t have a look at the events that happened in the past year and how the current year will shape up in the context of Finance. Our cover story this month delves into the major events of 2010 and gives our outlook on how the economy will shape up in the coming months of 2011. The “Article of Month” gives a further insight into what happened in the banking sector in 2010 and what would be some of the key challenges that the banking sector is going to face in the coming months as the liberal monetary and fiscal policies get withdrawn. One of the important events that happened last year was the SEBI-IRDA tussle over ULIPs. Post winning the battle, IRDA came out with new regulations governing ULIPs. The current issue features an article on the same and the impact it will have on investor perceptions and the future pattern of ULIP investments. The current issue also features an article on Basel III guidelines which came up in September last year. The article goes in depth into the various facets of Basel III norms and what they mean for the Indian Banking Industry. Lastly, the newly introduced Classroom section discusses various aspects of Green Shoe Option.
We the new team feel privileged to be associated with the illustrious Niveshak. The outgoing team including Bhavit, Bhavya, Durgesh, Hitesh, Sumit, Swarnabha, Tanvi and Upasna successfully published the last 12 issues and with all your support brought the magazine to the height where it is today. I would like to take this opportunity to applaud them all on behalf of the new team. Also, I would like to thank all the readers for their valuable articles, crossword entries and appreciation e-mails. It is only because of readers’ constant support and encouragement that Niveshak has been such a great success. On these closing thoughts, I on behalf of the entire team of Niveshak would like to wish you all a happy and unforgettable 2011.
Please send in your suggestions and feedback at niveshak.iims@gmail.com and as always, stay invested.
Niveshak January 2010 Issue
Dear Niveshaks
The advent of 2010 brought a remarkable change in the functioning of the two major Indian exchanges – BSE & NSE, when they started the new trading yearby advancing market hours by 55 minutes to 9 a.m. As many of us must have predicted, this move saw a widespread opposition from many small brokers, however there were positive responses from institutional and retail investors. These indices have been flat for the time being but with lots of FII money expected to pour in, we can predict the triggering of a bull run. The fiscal tightening by Peoples Bankof China has had its effect on capital markets across the world but its effect seems to have faded away. So we expect the bull to prevail over the bear for most part ofthe year. Strong quarterly results for the last two quarters of FY 09-10 will surely takethe markets on an upward spiral. But if you say that is not real growth, we have the success story of Bihar, a state that has long been epitomized as the worst governed state. The state registered a miraculous growth rate of 11.44% in 2008-09 for which its Chief Minister Mr. Nitish Kumar got the Business reformer award. Add to this, the strong IIP numbers of last quarter and the growth posted by many states indicate that the economy could be out of the woods now. With this ecstatic news, we welcome you all to the year 2010!!
But the first edition of 2010 will be incomplete if we don’t have a glimpseon what happened in 2009 and how the year 2010 is going to shape up in the context of finance. Our cover story shall carry a broad perspective and foresee the future prospects of financial world and economy of India in the coming months of 2010. At the same time, the article will also highlight some of the crucial events like the Dubai crisis and the trends followed by sensex & inflation of the country during 2009.
In the present issue, we bring to you an insight on the agriculture insurance scenario in India along with a proposed product in the same industry. The article also features the problems in the current system of agriculture insuranceand inherent risks of the agriculture sector. As we stand at the doorstep of a new decade now, we take a look at some of the key learnings from financial misfortunes and various crises which left their marks in the last decade. We also introduce you to pension funds of India and try to acquaint you with the need of pension fund reforms for capital market development in India. Owing to the overwhelming responses for the recently introduced “Nivesh” from so many B school students across India, we have decided to continue Nivesh for this edition also.
We, the new team, feel fortunate to be associated with the illustrious Niveshak, brainchild of the first team Niveshak including Amit, Biswadeep, Nilesh, Sareet,Sarvesh, Sujal & Tripurari, who, with the support of the whole MBA fraternityof top 50 B schools of India, took Niveshak to that height where it is today - theonly monthly finance magazine from a business school. It is a delight and pleasurefor us to carry forward the legacy fashioned by our seniors but at the same time it brings in a big responsibility of living up to the standards set by the brand “Niveshak”.We promise that with your support and appreciation, we will try to meet your expectations and build a bigger platform to facilitate knowledge sharing forall the finance enthusiasts of India.
Hope you find this issue an interesting read.
Stay invested for the good times ahead.
Bhavit Sharma
(Editor-Niveshak)
(click on image or here to view)
Niveshak January Issue
On behalf of IIM Shillong, we wish all our readers a very Happy New Year and hope we see the Bull running wild on the markets very soon.
The ghost of the sub-prime has not yet passed; the bear is still at large at the markets. Stock prices fight each other in defeating historic lows. Government of India has again revised estimated GDP growth projections taking it a notch below. Negative corporate quarterly results put the sensex on a slippery slope, but India Inc has more has more to worry about. This time the image of India Inc has been tarnished by the Satyam’s disgraced ex-chief Mr. B Ramalinga Raju, once hailed as the blue eyed boy of India Inc. Merger talks & bailout pleads take most of the news space. Apart from negative financial data across the globe grabbing headlines, Mr Barack Obama brings in some cheer and hope for change to viewers by taking over the Presidentship
of the United States of America.
In this edition we have tried not to talk about sub-prime crisis much. Since this is the first issue of this year, we would try to look at the blunders we committed in 2008 in the world of finance and try not to repeat them in future. We shall also try to take a historic look at Great Depression of 1929 and draw parallels with the current crisis. We have important lessons to learn from the failure of Bear Stearns, a sub-prime hit bank that had to shed its I-Bank glamour, swallow its pride and sell itself to JP Morgan Chase, a less glittery but huge commercial bank. One of the most complicated financial instruments-the Credit Default Swaps has also been extensively covered.
We shall discuss one of the most elusive topics - the pricing of CDS by some globally accepted methods. The regime of regulated oil prices in India has always troubled oil companies and they had to often take support of oil bonds to see the light of another day. Last few years of stratospheric crude oil rates has further endangered their existence. We shall analyze if they can ever end up in green. As the catastrophe of Wall Street has hammered valuations across world stock markets to unimaginable lows, certain corporate have started to stroll between the ruins and pick stocks of rival companies at throwaway prices. To fend such a type of acquisition, India Inc has finally arisen to Differential Voting Rights. This issue carries an article on DVRs. This volatility of stock market indices has also prompted some analysts to question if these indices are
representative enough of the world business outlook. May be we have an alternative in the Baltic Dry Index that is only dependent on fundamentals and not much on sentiments.
Talking about Sub-prime, historically low stock prices, acquisition of shares, bankruptcy of banks, we remember that Sovereign Wealth Funds acquired major chunks of shares of wall street behemoths like Merrill Lynch, Morgan Stanley, Bear Stearns, Citigroup, UBS, London Stock Exchange among many other corporate which are regarded as America’s pride. These funds are swelling with cash and are always hungry for shares of huge western companies, but have faced severe opposition from governments of the countries where they targeted strategic acquisitions. What are these funds, how big are they, who owns them and why are they being opposed? We will try to answer.
Still you found lots of sub-prime talks. Well there is no way out of it as of now.
Happy Reading.
Team Niveshak
