The document discusses developments in the Indian economy and insurance sector based on information presented between June 8-July 1, 2011. It notes that only 8 of 23 private insurance companies have turned profitable, while ICICI and SBI Life control 10% of the market each. It also discusses rising inflation in India and China, challenges facing the Indian fiscal deficit and GDP growth targets, and declining profits in the broking industry.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Tailing encouraging global cues, Indian indices edged higher at open with Sensex above 20700. Sentiments turned cynical on CPI hitting a near double digit mark to 9.84% in September. Choppy benchmarks settled in red zone with Nifty at 6090.
It was a choppy day of session as Sensex finally ended flat following a double top formation at around 20250 levels. Indian indices started gap up despite sluggish global cues as encouraging Q1 numbers from major companies boosted investor sentiments. Sentiments later turned negative on Moody’s warning on sovereign credit rating which saw markets correcting to end flat. Moody’s warned that the rupee fall can add to inflationary and fiscal woes and thereby may put pressure on the sovereign rating. Sensex closed in green whereas Nifty ended in red. Among BSE sectorials, IT sector topped the charts on buoyant TCS Q1 show.
International Journal of Business and Management Invention (IJBMI)inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Tailing encouraging global cues, Indian indices edged higher at open with Sensex above 20700. Sentiments turned cynical on CPI hitting a near double digit mark to 9.84% in September. Choppy benchmarks settled in red zone with Nifty at 6090.
It was a choppy day of session as Sensex finally ended flat following a double top formation at around 20250 levels. Indian indices started gap up despite sluggish global cues as encouraging Q1 numbers from major companies boosted investor sentiments. Sentiments later turned negative on Moody’s warning on sovereign credit rating which saw markets correcting to end flat. Moody’s warned that the rupee fall can add to inflationary and fiscal woes and thereby may put pressure on the sovereign rating. Sensex closed in green whereas Nifty ended in red. Among BSE sectorials, IT sector topped the charts on buoyant TCS Q1 show.
Tracing the firm global cues, bulls kick started the day northwards on D-Street. Sentiment remained upbeat as World Bank stated that Indian economy has come back on growth track and is likely to grow by 5.6% in FY15. Benchmarks climbed 0.45% to end day near intraday highs ahead of a crucial 2-day Fed meet about the wrapping up of the bond buying program and interest rate direction.
India is rapidly emerging as a key destination for foreign investment. Both foreign direct investment (FDI) and foreign portfolio investment (FPI) have seen robust growth.
FDI reached an all time high of US$ 56B in 2015-16, 6x more than the figure a decade ago.
Mauritius and Singapore are top FDI investors in India; this is due to tax regime. India has double tax avoidance treaties, and lower local tax rates in those countries mean that investors are routing FDI through them. Also, several investors prefer Singapore as a legal jurisdiction as well.
India has become an important destination for inbound FDI in a global context. In 2015, for ex, it was the seventh meaningful nation, behind the likes of USA, China, Brazil, Canada, UK and Germany. We are ignoring some of the other nations higher up on the list, like Ireland, Hong Kong, Switzerland etc, since these are routing destinations.
The report gives overview of trend in FDI, and the governing regime for FDI in India, including sectoral caps, procedure for setting up a company in India and so on.
Halting the 2-day northward journey, Indian indices started on a cautious note and traded mostly in negative zone. Markets ended marginally in red with Nifty above 6200 mark. On sectorial front, Power was the top gainer whereas Consumer Durables topped the losers.
The MSME (Micro Small and Medium Enterprises) sector in India has been of considerable
importance since Independence. The small and medium sector contributes 39 per cent of the total GDP and 34
per cent of the total exports of the country. The sector provides employment to 29.5 million people in rural and
urban areas of the country and has emerged as the second largest employment providing sector in the country
after agriculture. The small and medium sector has been recognized as engine for growth in the country.
Keeping in view the importance of this sector efforts have been made by the government to ensure steady
availability of financial resources. SIDBI (Small Industries Development Bank of India) is the apex institution
for making available financial resources to the small scale industries. In this paper, a financial analysis of the
development financial institution SIDBI in the post liberalization period has been conducted with a view to
analyze its function in the changed operating environment after 1991.
Tracing the firm global cues, bulls kick started the day northwards on D-Street. Sentiment remained upbeat as World Bank stated that Indian economy has come back on growth track and is likely to grow by 5.6% in FY15. Benchmarks climbed 0.45% to end day near intraday highs ahead of a crucial 2-day Fed meet about the wrapping up of the bond buying program and interest rate direction.
India is rapidly emerging as a key destination for foreign investment. Both foreign direct investment (FDI) and foreign portfolio investment (FPI) have seen robust growth.
FDI reached an all time high of US$ 56B in 2015-16, 6x more than the figure a decade ago.
Mauritius and Singapore are top FDI investors in India; this is due to tax regime. India has double tax avoidance treaties, and lower local tax rates in those countries mean that investors are routing FDI through them. Also, several investors prefer Singapore as a legal jurisdiction as well.
India has become an important destination for inbound FDI in a global context. In 2015, for ex, it was the seventh meaningful nation, behind the likes of USA, China, Brazil, Canada, UK and Germany. We are ignoring some of the other nations higher up on the list, like Ireland, Hong Kong, Switzerland etc, since these are routing destinations.
The report gives overview of trend in FDI, and the governing regime for FDI in India, including sectoral caps, procedure for setting up a company in India and so on.
Halting the 2-day northward journey, Indian indices started on a cautious note and traded mostly in negative zone. Markets ended marginally in red with Nifty above 6200 mark. On sectorial front, Power was the top gainer whereas Consumer Durables topped the losers.
The MSME (Micro Small and Medium Enterprises) sector in India has been of considerable
importance since Independence. The small and medium sector contributes 39 per cent of the total GDP and 34
per cent of the total exports of the country. The sector provides employment to 29.5 million people in rural and
urban areas of the country and has emerged as the second largest employment providing sector in the country
after agriculture. The small and medium sector has been recognized as engine for growth in the country.
Keeping in view the importance of this sector efforts have been made by the government to ensure steady
availability of financial resources. SIDBI (Small Industries Development Bank of India) is the apex institution
for making available financial resources to the small scale industries. In this paper, a financial analysis of the
development financial institution SIDBI in the post liberalization period has been conducted with a view to
analyze its function in the changed operating environment after 1991.
This monthly magazine brings the happenings in the business community for both strategists, economists, financial wizards, Business Analysts. Subscribe for physical copy it if you are interested.
India too has its own pool of such bold and fearless women who have made a mark for themselves both within the country as well as overseas. Their relentless zeal, incessant quench for success and willingness to walk the extra mile have broken all myths about their inborn limitations that were supposed to be major roadblocks on their success expressways.Let’s meet 15 such Indian women who can be easily termed as role models for every Indian- both males and females:
We believe that the divergence between Value and Growth stocks continues to prevail, & that volatility is a factor which is inherent in equity as an asset class.
October 2018 saw the Indian markets tumble by about 5 per cent, in a month that saw heavy volatility in the equity markets owing to on-going concerns regarding weakening currency, rising crude oil prices, widening fiscal deficit, along with muted earnings performance and the liquidity crunch-woes in the NBFC sector.
We believe that the divergence between Value & Growth stocks continues to prevail. Currently, fundamentally sound value stocks are available at inexpensive valuations & have better earnings visibility. Read our Equity Update for August 2020
Equity View:
Markets are moving into earnings season and initial results of few corporate entities seem good enough,
starting with Indusind Bank followed by Infosys. The numbers of these companies were expected to come
out well thus this outcome is not surprising from sectors like Private Sector Banks, IT, FMCG and Pharma
which are expected to perform well. There are few sectors like Capital Goods, Public Sector Banks and old
Infra Companies which can show subdued results. We expect domestic factors like government policies
to drive the market in absence of global cues. IIP data is set to come out today and is expected to be flat;
Inflation is also expected to be higher due to base effect.
Real estate markets have a cycle of around 5 – 7 years thus an off-take seems distant, however buying
could initiate after 2 – 3 years. A rate cut acts as a catalyst but it cannot help in a sudden pick-up of
demand.
There is always a trend and a counter trend in the movement of an asset class. We need to see the long
term trend. In commodities there is bearish long term trend so counter trend is bullish and thus,
currently we are seeing a counter trend in this asset. Similarly, if we have a bullish long term trend for
equity markets then from time to time there would be correction which is also happening now and this is
known as counter trend. The incremental savings of the government can either be used in the form of an
investment, subsidies or 7th Pay commission arrears. This definitely leads to correction in equity markets
but it doesn’t lead to bearish phase. If everyone is hopeful about the turnaround of Indian story and
economic revival then no one exits completely from the stock markets. Larger expectations are that
investments will certainly pick up and we all are hopeful about it.
News:
DOMESTIC MACRO:
Indirect tax collection rose 35.8% to over Rs. 3.24 lakh crore in the first half of the current fiscal.
Indirect tax collection in the period from April to September in the last fiscal stood at about Rs.
2.38 lakh crore.
The International Monetary Fund (IMF) in its latest World Economic Outlook has lowered India’s
growth forecast for FY16 to 7.3% from its July forecast of 7.5%. Growth is expected to bounce back
to 7.5% in 2016-17 on the back of reforms, pick-up in investments and lower commodity prices.
The Reserve Bank of India (RBI) will be increasing the investment limit for Foreign Portfolio
Investors (FPIs) in Government Securities to Rs. 1,79,500 crore by January 1 from the existing Rs.
1,53,500 crore.
The Cabinet approves a Railway Ministry proposal to pay bonus equivalent to 78 days’ pay, with a wage
ceiling of Rs 3500 a month.
Interim Budget 2019, presented on Feb 1, held a few good surprises for the farmer community and the salaried classes but was largely in line with market expectations. Markets, which had already ended January 2019 on a flat note (up 0.5% for the month), remained largely unaffected by the Budget announcements. Read the document to know more.
Government’s release of Rs 86.55 billion to certain
banks for preferential allotment of shares, hopes of more reform
measures by the government in the upcoming Budget, and
sustained inflows from the foreign institutional investors (FIIs)
augured well for the local indices.
Read the full document to know more.
Indian Equity Markets (Nifty 50 Index) inched higher (+1.5%) during the month outperforming its emerging market peers.
New set of positive reforms by the government on domestic front and expectations of resolution of US-China trade war on
the global front were the major contributing factors which lifted sentiments.
Read the full document to know more.
The markets have started on a somber note. As discussed in the past that markets were at tiring levels of 8600, a 3% correction was expected in last one month. it would be an approximate fall of 7% after today’s correction which is in line with developed markets. The US markets fall of ~7.5% in last one month has impacted Y-O-Y returns from 17% to 3%. India on the other hand, is considered to be an outperformer as compared to other emerging markets like Brazil, Australia, Indonesia, etc however a further correction of 3% - 4% cannot be ruled out. The mid cap index is fairly resilient but people should stay away from low quality high beta mid cap stocks and if investments are existing then profit booking followed by exiting these stocks is suggested.
Stock Market is an integral part of the economy.
If economy does well..
-Corporate sector will witness growth in sales and earnings.
If corporate earning improve..
-It will result in higher EPS
If EPS of a company goes up..
-Its share price will appreciate
If share prices in general appreciate..
-It will attract more savings & investment
Stock market generally discounts forthcoming events in advance but sometimes not properly.
Indian equity indices ended lower in May 2020 owing to
concerns about rise in domestic Covid-19 cases and extension of the nationwide lockdown. Benchmarks S&P BSE Sensex and Nifty 50 declined 3.84% and 2.84%, respectively in May 2020.
"• National Financial Services Operation hub
• Regional/Functional head quarters for financial service players
• National headquarters for players
• Private banking hub for NRIs/Regional HNWs
• International Micro-finance hub
• International commodity trade hub
• Participation in global capital markets
• Global hub for IT services for financial services sector
• Global hub for BPO services for financial services sector
Dear Investors,
September saw a spillover of the previous month’s equity
market correction. The main reason for this was the continuing
bleak global events, which also negated domestic macro greenshoots to a large extent. In the West, the possibility of a US Fed
rate hike lingers, keeping investors globally on their toes.
Amidst this global weakness, uncertainties of global markets
with respect to the Euro have reduced after Alexis Tsipras’
Syriza party returned to power once again in Greece, this time
with a majority. The Chinese government is also taking
initiatives like tightening trading rules on forex and stock
market to stabilize their economy. The slowdown in China in a
way has been India’s gain, which has led to India emerging as
the top destination for FDI investments, attracting $30 billion
by the end of June 2015.
Closer home, better looking green-shoots portray a recovering
economy. Industrial growth has been above 4% for the past 2
months, whereas retail inflation continues to remain lower.
Although there has been a double digit deficit in the rainfall
this year, RBI is not too much worried about the pressure on
the food prices given the comfort it has derived from the
actions by the government to manage supply. An addition to
these positives was RBI increasing the foreign investment limit
in central government securities. This will help create a new
pool of money to compensate for the lowering SLR imposed on
banks.
Markets rejoiced at the bonnes nouvelles (good news) of the
50 basis points rate cut by RBI at the fourth bi-monthly
meeting. The main objective behind this was to enhance
growth in the economy. Mr. Raghuram Rajan hopes that
investment should respond more strongly after some certainty
about the extent of monetary stimulus in pipeline, even if the
transmission is low. With this transmission, investments in the
real economy would increase. This announcement was then
followed by a highly ‘dovish’ stance, with the RBI repeating
that it would remain in an ‘accommodative mode’. The rate cut
has increased the cumulative rate cut this year to 125 bps. It is
hearting that banks like SBI has cut its base rate by 40 bps.
All in all, the month saw events that were unexpected, events
that created a yin-yang sentiment among investors and events
that made India shining more convincing. RBI has taken the
first bold step on its part. The question now is what the
government will do on its part to grow our economy!
Our „VCTS‟ framework is currently indicating that, Valuations - are reasonable for long term investments, Cycle – Business Cycle has bottomed out, Trigger would be the trajectory of COVID-19 growth curve and vaccine development and Sentiments – around equity as an asset class is negative due to muted past returns and relatively low FPI flows. We recommend that it is a good time to accumulate equities and stay invested for long term across market cycles.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. Insurance Sector (8/6/11)
3 companies have seen 3 CEO change
in 8 years. ICICI,Bajaj, Aviva
14 life insurance companies have less
than 1 % market share
Out of 23 private companies only 8 have
turned profitable
Only ICICI and SBI Life have 10 %
market share
3. Insurance
IRDA has increased lock in period from 3
to 5 years for ULIP
Reduction in charges also creating
problems
Break Even has increased from 8-9
years to 10-12years
4. Insurance Market Share
ICICI 6.3 %
SBI Life 6.0 %
HDFC life 3.2 %
Bajaj Allianz 2.8 %
Reliance Life 2.4 %
Birla Sunlife 1.7 %
Max New York 1.6 %
Tata AIG 1.10 %
5. FM Meets FII (8/6/11)
Finance Minister had a close door
meeting with 30 FIIs
He assured him about long term growth
impact of India
6. Indian Economy
Challenges(9/6/11)
GDP forecast reduced to 7.8 %
Revenue collection becoming challenge
as corporate profitability goes down
Fiscal Deficit target of 4.6% difficult to
achieve
Disinvestment target of Rs. 40,000 crore
difficult to achieve as stock market in
downtrend
7. Interest Rate problem
RBI had since 2010 raised repo and
reverse repo rates ten times to 7.5% and
6.5%, respectively, to control high
inflation mainly due to high fuel and
commodity prices.
Repo is the rate at which banks borrow
money from RBI. Reverse repo is the
rate at which banks lend to RBI.
8. Direct Tax vs GDP Growth %
(9/6/11)
Year GDP Direct Taxes
2007-08 9.3 34.7
2008-09 6.8 8.1
2009-10 8.0 14.9
2010-11 8.5 19.3
9. US Economy Gloomy (9/6/11)
India has invested $ 39 billion in US
Treasuries as on March 31, 2011.
US has deficit of $ 1.4 Trillion this fiscal
year.
QE 1 US had injected $ 1 Trillion into US
Economy
QE 2 US had injected $ 600 billion into
US Economy
Unemployment rate at 9.1 %
10. European Zone Problems
International lenders who bailed out Greece last
year with a 110 billion euro (USD 160 billion)
loan
GDP to shrink by 3.8% this year and start
growing in 2012
Greece's economy shrank far more than
expected at the start of 2011, signaling a
second wave of austerity measures prescribed
by the EU and IMF will pile even more pain on a
fractious society
11. NIM for PSU Bank (9/6/11)
Year NIM
92-95 2.72
05-06 2.85
06-07 2.55
07-08 2.15
08-09 2.10
Private sector banks it is as high as 4 to 5%
12. Market Valuation (P.E) (9/6/11)
India Sensex at 14.85
China Sanghai at 12.73
Brazil Boveszpa at 10.04
Russia RTS at 6.74
13. Mutual Funds Industry
Collection in 2010 in NFO less by 57 %
from 2009
Only 40 % of AUM is of Equity base and
60 % is of debt
AUM in 2004 was Rs. 1,50,000 crore
which went to Rs. 8,00,000 crore in 2007
but then reduced to 6,00,000 in 2008-09
41 Mutual Funds are there in India
currently with more than 1000 schemes
14. IIP (10/6/11)
Index of Industrial production (IIP) for the
month of April grew at 4.4% - less as
compared to growth of 7.3% in previous
month, as per old series. As per new
series, which have 45% more items than
old series, IIP grew at 6.3%.
15. Indirect Tax Increases
(13/6/11)
Exercise duty collection, indication of
factory production rose 38.4 % to Rs.
11,500 crores
Revenue from Customs rose 37 % to Rs.
25,176 crores
Service tax mop up was 27.6 % higher at
7,722 crores.
16. Financial Inclusion (13/6/11)
Govt and RBI has target to cover 73000
villages having population of more than
2000 by March 2012.
The target is that each of them should
have bank account
Direct cash Subsidy can be transferred
to these accounts.
Cost of opening an account and
maintaining it is Rs. 65
17. Financial Inclusion (13/6/11)
Less than 20 % of such accounts is
active even after one year of opening.
Currently only 45 % of population has
access to bank account
Low ratio of one bank branch per 16000
people
18. QIP Investment Back Fire
(14/6/11)
A QIP helps a listed company to rise
capital in the domestic market via equity
hares, fully and partly convertible
debentures to a buyer of is choice.
SEBI instituted the guidelines for this
relatively new financing avenue on May
8, 2006 to reduce dependence on
foreign capital.
19. Worst Performing QIPs
QIP Date QIP Price Price
Aksh optifibre Sep 20 6.7
Kiri Industry Nov 598 219
C&C Const Apr 244 92
Ansal Proper Oct 90 41
20. Best Performing QIP
QIP Date QIP Price Price
Exide Indus March 108 156
Tata Motors Oct 764 1013
Shoppers Stop Oct 325 440
Godrej consu July 345 438
21. Inflation Rises (15/6/11)
Inflation rises to 9.06 % from 8.66 % for
May 2011
This has again increased the scope for
Interest rate rise by RBI
Rise in interest rates slows down the
Economy as cost of capital goes up
22. Interest Rates in India
Bank Rate at 6 %
Repo rate is at 8.5 %
Reverse Repo is at 7.5 %
SLR is at 24 %
CRR is at 6 %
23. World Interest Rates
USA 0.25 %
Japan 0 %
Bank of England 1 %
Europe 1.5 %
Australia 2%
China 3.3 %
India average 9 to 10 %
24. China Ups Reserve Ratio by
50 bps (15/6/11)
Inflation in China is at 5.5 % which is 34 months
high
It has increase its RRR (Reserve Ratio
Requirement) to 21.5 %
China one year lending rate is 6.6% and
deposit rate is 3.3%
Hardening of interest rates by China bring down
the commodities prices since it is largest
consumer of commodities
25. Greece Credit lowest in world
(15/6/11)
S & P has lowered the rating of Greece
which makes it lowest in the world
It is lower than Pakistan and Ecuador
since both these were out of
international markets since 2009
Greece was given first bailout package
of $ 158 billion
26. Economy finds it tough
(16/6/11)
6.3 % IIP in April 2011 compared to 8.8
% in March 2010
Q4 GDP rose only 7.8 % compared with
8.3 % in third quarter
0.4 % Investment Growth in Q4 as
against 20 % year earlier
32 % drop in net FDI inflow in 2010
44 % drop in gross FDI inflow in 2010
27. Broking Industry facing tough
times (16/6/11)
Company % chg NP
India Info line -8.99
Edelweiss Capital 1.68
Kotak Securities -30.05
Indiabulls securities -43.86
AdityaBirla Money -166.56
Geojit BNP Paribas -38.52
28. Types of PMS (20/6/11)
Fundamental PMS (Multi cap )
Value Investing PMS (long term horizon
with small and mid cap stocks)
Quantitative PMS (purely mathematical
calculations)
Event Driven PMS (Event base stocks
with short term focus)
Mutual Fund PMS (Invest in different
schemes of Mutual funds)
29. Gold – Ever Rising Demand
(21/6/11)
Gold has given return of 160 % in last 5
years
Nifty has given return of 83 % in last 5
years
Central Banks globally have become net
buyers of Gold in 2010 in last 21 years
In 2010, Central Banks bought 76 tonnes
of gold
30. Gold – Ever Rising Demand
(21/6/11)
In 2011, first 6 months saw Central
Banks buying 129 tonnes of gold
In 2005 central banks sold gold worth
674 tonnes
China Forex Reserve has only 1.8 % of
its in gold of $ 3 Trillion forex reserve
World average is 11 %
China has to buy 6000 tonnes to reach
global average
31. Gold cont ….
Japan gold reserve stands 3.2 % of its
total forex reserve of $ 1.14 trillion
India gold reserve is at 8.2 % of $ 300
billion of forex reserve
Supply of gold for last 20 years has
increased only by 0.7 % annual rate.
32. Why turnaround in Gold
Over years, Central Banks have had major
portion of their reserves in US dollar
Gold is considered as “Store of Wealth”
US economy weakening
More printing of US dollars leads to
depreciation in its value
Gold cannot be printed or mined fast, value of
currencies is sinking against gold
33. Gold as % of Forex Reserves
Country Gold Tonnes % Res
Singapore 127 2.4
Taiwan 424 4.7
India 558 8.2
Japan 765 3.2
China 1054 1.6
34. Gold Supply Tight
South Africa which produced about 1000
tonnes in 1970 now produced less than
200 tonnes in 2010
Very few large gold mines are expected
to come up
Over next five years, only seven gold
mines that are capable of producing
more than 500 kilo ozones ( 1 0z = 31.1
grams)
35. International Fund (22/6/11)
An international fund is a fund that can
invest in companies located anywhere
outside its investors country of residence
Feeder funds is one that invest through
another fund called the master fund. Its
usually launched to beef up the asset
base of the master fund
36. Performance of International
Fund
Funds 1 Year Return
Fidelity Global Real Asset 19.48
DSPBR World Energy 19.19
DWS Global Agri Fund 18.78
DSPBR world Mining 18.41
Birla Commodity Equities 16.97
Mirae Asset China Advantage 14.15
Principal Global Opportunity 13.91
37. PE Investors Eye India
(23/6/11)
Private equity investors are sitting on cash to
the tune of $20 billion to enter India
$70-75 bn of private equity (PE) and venture
capital investment in India by 2015.
about $22 bn is required for follow-up funding of
660 current PE-funded companies. Then, about
2,000 companies in the IT and IT-enabled
services sectors, manufacturing, engineering,
construction and healthcare are expected to
attract close to $30 bn in new PE and VC
investments over the next four years
38. PE Investors Eye India
(23/6/11)
The total investment by private equity
investors over the last six years is
estimated at $50 bn through 1,600 deals
PE investments have grown from $2 bn
in 2005 to $19 bn in 2007. Thereafter,
investment value fell to around $6.2 bn
in 2010, registering a compounded
annual growth rate of 25% over the past
six years.
39. PE Investors Eye India
(23/6/11)
The real estate and property
development sector clocked 203 deals
worth $13 bn of the total of $50 bn PE
investment over the past six years.
40. FCCB Creates problem for
Corp India (27/6/11)
Rs. 16000 crore convertible bonds sold by top
500 companies come for repayment by march
2012
Rs.31500 crores worth of bonds due for
redemption by March 2013
48% price discount for conversion of Assam
company
86% discount to conversion price of RCom
50 % discount to conversion price of Suzlon
41. ULIP Sales fall hurt companies
(27/6/11)
LIC new business fall by 8 %
Private life insurers fall by 23 %
ICICI fell by 29 %
HDFC fall by 27 %
Reliance life fell by 52 %
Bajaj fell by 42 %
42. GDP and Capital Investment
Correlate (29/6/11)
Year GDP % Capital Contri
2005-06 9.5 % 55
2006-07 9.7 % 56
2007-08 9.2% 72
2008-09 6.7% -10
2009-10 7.4 % 55
2010-1 8.8% 40
43. GDP and Capital Investment
Correlate (29/6/11)
Higher GDP Growth requires strong
Capital Investments by Corporate sector
Currently due to high interest rates, the
capital investment plans have been put
on hold by corporate sector
44. NBFC under RBI Scanner
(29/6/11)
Around 12630 NBFC are registered with
RBI as on June 30, 2010
There are 228 deposit taking NBFC
212 NBFC have CAR of 12 % but RBI
wants it to 15 % by March 2012
Banks Credit to NBFC rose 55.7 % in
April 2011 from 15 % year ago.
45. China holds Treasury in US
(1/7/11)
China holds atleast $ 1.1 trillion
investment in US Treasury bills
China accounts for 26 % of total
investment in US Treasuries
If china pulls out this investments then
interest rates in US could go up fast
46. Young Working Population by
2040 15 to 59 years (1/7/11)
2010 61.8 1980 54.6
2015 62.5 1985 55.3
2020 63.1 1990 55.9
2025 63.5 1995 57.2
2030 63.9 2000 58.6
2035 63.9 2005 60.4
2040 63.4
47. Economy on firm ground
(1/7/11)
Core Sector grows 5.4 % in May vs 4.6
% April
8 sector as compared to earlier 6 sectors
Now core sector has 38 % weight age in
IIP index as compared to 26 % earlier
48. Indian consumption story to grow
14 % next 3 years (5/7/11)
Consumer durables, automobiles,
personal care, food have maximum
growth potential in indian markets
49. MNC controls Indian markets
MNC Global Sales %india Rank india
Suzuki $23.6 Billion 23.3 1
Nokia $58.1 Billion 11 1
Unilever $58.7 billion 6.6 1
LG $49.4 billion 5.9 1
Samsung $135.8 billion 2.5 2
Mcdonal $24.1 billion 0.37 1
50. PE Investment Rise, Exist Lag
(9/7/11)
January to June 2011 saw Private Equity
deals with $ 5.8 billion
Total deals in this period 211
In 2010 there were 154 deals during
same period (37 % rise)
Deal values have increased by 34 %
compared to same period in 2010
Infrastructure sector had 23 % highest
share of total PE funds flowing in
51. Mutual Sitting on Cash % of
AUM (15/7/11)
ICICI Prudential Advisor 28.8
ING Optimix Global Commo 18.6
Sahara Super 20 17.9
Axis Midcap 15.4
HSBC Midcap Equity 13.2
IDFC Premier Equity 12.9
Funds need to keep 5 % of AUM as cash to
meet day to day redemptions units
52. US Consumption down
(18/7/11)
US Consumption in last 14 quarters have gone
up only 0.5 %
This is from 2008 starting
Pre 2008 crisis the consumption was 4 %
average for last 12 years
That means Q3 again in Question mark ?
Increase debt limit to $ 14.3 trillion
Asian economies have $ 3 trillion in US
treasuries.
53. ARCIL Under stress from
Large Lenders
Name Rs. Crores
ICICI 9000
SBI 3000
IDBI 2000
PNB 1000
Buying 15 year mortgage assets,
overstepping ceiling of 8 year asset
54. Banks aggressive for SIP
(22/7/11)
SBI Bank targets 25 lakh SIP till March
2012
Axis Bank targets 5 lakh SIP till March
2012
Overall MF industry from April 2012 to
June 2012 had 7 lakh folio closing down
No support from Distributors
55. India in World Trade (22/7/11)
India is among top 20 in exports of
goods
India is among top 10 in service exports
Our contribution in world GDP up from
4.6 % in 2000 to 5.4% in 2010
India share in world exports in 2000 was
0.7 % and now in 2010 it is 1.7 %
56. Indian Corporate Results
(1/8/11) June quarter
612 companies so far declared results
Sales up 23.5 % vs 18 %
PBDIT up 19.4 % vs 12.5 %
Net Profit 13 % vs 19 %
Interest outgo 19.4 % vs 7.7 %
High interest rates killing Net Profit.
57. US Debt Default (2/8/11)
To raise the current limit of borrowing of
$ 14.3 trillion by further $ 2.4 trillion
To cut spending by $ 2.4 trillion in next
10 years
Initial cut spending by $ 917 billion and
and another $1.5 trillion by year end
India holds $ 41 billion in Treasury bonds
58. World job cuts (2/8/11)
HSBC to cut 30,000 jobs by 2013. Cost
to revenue ratio touched 57.5 % which is
more than standard of 48 % to 52 %.
China PMI reduces from 50.7 as
compared to 50.9 in June. This index is
made by HSBC
India PMI reduces to 53.6 in July from
55.3 in June which is 20 month low
59. Finance Companies to tap bonds
from retail investors (2/8/11)
Religare, muthoot and india Infoline to
raise Rs. 5000 with average interest of
around 12. 5 %
60. Retail Credit Growth (3/8/11)
Retail loan grows at 17 % in June 2011
vs 6.6% in june 2010
Total value Rs. 6,95,000 crores
Home loans account for 3.7 % (Rs.
3,58,000 crores) vs 2 % year ago
Auto loans lowest in 2 years
Maruti – 26 % Hyundai – 11 %
Auto sales leading indicator of demand
in the economy
61. Banks in BRIC in Risk
Brazil financial shares have lost as consumer
defaults hit 12 month high in june and
borrowing cost climbs to 46 %
China bank stocks at lowest level since 2006
Bank of moscow needed the biggest bailout in
Russia history last month after racking up 5.4
Billion dollars of unsecured bad loans
China faces risk that 30 % of total loans may go
for default
62. Telecom in worst shape
(4/8/11)
Average Revenue Per User (ARPU) has
fallen 12 % in India from Rs. 216 to Rs.
190
Bharti Airtel made loss for 6th
straight
quarter
Africa also made loss of Rs. 302 crore
63. Debt as % of GDP (4/8/11)
Russia 9 % Ireland 114 %
China 17 % Portugal 100 %
South Korea 29 % US 100 %
World Average 69 %
India 64 %
Japan 229 %
Greece 152 %
Italy 120 %
64. US Economy
Downgrade(12/8/11)
US has been down graded from AAA
rating to AA by Standard and Poor which
sent shock waves across the globe
France and UK may also lose its AAA
rating since the debt there is also very
high
Equities market around world lost $ 5.4
trillion since the downgrade
65. US Mess
Unemployment in 2010 9.6 % while in
2011 9.10 %
Inflation CPI 1.6% in 2010 and 3.6 % in
2011
GDP 2.9 % in 2010 and 1.40 % in 2011
66. Broking firms smell cash in
NCD (12/8/11)
Companies like Indiainfoline, Religare
and muthoot finance are to raise Rs.
3500 crores
This would fetch brokers commission of
Rs. 45 to 50 crores as their fees.
70. Euro Zone Data (18/8/11)
17.5 % India exports to European Union
in 2010 -11
4 % share in FDI inflows from Germany
and France in total inflows between April
2000 and May 2011
71. Real GDP and Fiscal Deficit
(Source IMF and year 2010)
Real GDP Fiscal Deficit
World 5 % 5.5 %
Euro Area 1.7 6.1
USA 2.8 10.3
Emerging Eco 7.3 3.7
Japan 3.9 9.6
UK 1.3 10.2
India 8.2 6.8
72. Real GDP and Fiscal Deficit
(Source IMF and year 2010)
Real GDP Fiscal Deficit
Ireland -1 % 32.2
France 1.5 7.1
Spain -0.1 9.2
Portugal 1.4 7.3
Belgium 2.0 4.6
Germany 3.5 3.3
Italy 1.3 4.5
Greece -4.5 9.6
74. SBI CAR falls (22/8/11)
2008-09 2009-10 2010-11
Tier I 9.38 9.45 7.77
Total 14.25 13.39 11.98
Provisioning 8,794 9,155 17,071
Rs crore
Tier I capital is 8 %
75. Take out Financing (24/8/11)
Take out financing is a procedure under
which the loans made by banks to
infrastructure firms are sold to other
institutions so that banks recover their
funds ahead of the payment schedule
under the loan agreement.
IIFCL (India Infrastructure Finance
Company Limited) has target of Rs.
10,000 crores for Fy 12
76. Banks in Take out financing in
FY 12
Union Bank Rs. 1500 crores
Central Bank Rs. 1300 crores
IDBI bank Rs. 600 crores
PNB Rs. 180 crores
________________________________
Banks lending to infrastructure sector
Power Rs.2,92,342 crores
Telecom Rs.94,319
Roads Rs. 99,038
77. GDP of 34 countries of OECD
24/8/11
Year GDP
Q4 2009 -0.9
Q1 2010 2.5
Q2 2010 3.3
Q3 2010 3.3
Q4 2010 3.0
Q1 2011 2.4
Q2 2011 1.6
78. Million job but no takers (25/8/11)
Defense 1,88,224
Faculty and Researchers 17,739
Police force 5,30,580
Field Investigators 1,300
Doctor and medical staff 1,78,801
National Rural and Health Mission
1,48,361
Income tax department 16,331
79. Capital Goods stock Bargain
Hunting (25/8/11)
Company Current PE 5 year Avg PE
ABB 145 43
BHEL 14 29
BEML 12 18
Bharat Elec 14 16
Crompton 12 20.9
L & T 24 23.6
Siemens 32 33.1
Thermax 15 32.2
81. Japan downgraded from Aa2 to
Aa3 (25/8/11)
Moody has downgraded Japan economy
Real GDP
June 2011 -1.0 %
Mar 2011 -1.0 %
Dec 2010 2.1 %
Sept 2010 5.0 %
82. Japan to fight rising yen (25/8/11)
Govt to release Forex Reserve to Japan
Bank for International Cooperation
(JBIC) for funding to aid exporters
Japan has $ 1.1 trillion in forex reserves
83. Gold loses its Sheen (26/8/11)
Chicago Mercantile Exchange raised its
margin after gold reached $1910 ounce
Minimum cash deposit to trade gold rise
27 % ti $ 9450
Maintenance margin increased to $ 7000
from $ 5500
Shangai gold exchange also raised the
margins
84. Countries Contribution in World
GDP (%) (29/8/11)
USA 23.1 Russia 2.3
China 9.3 Italy 3.3
Japan 8.7 Others 35.1
Germany 5.2
France 4.1
UK 3.6
India 2.7
Canada 2.5
85. LIC and IIFCL to join (29/8/11)
Infrastrcture in 12th
five year plan $ 1 trillion
required
The propose venture will allow LIC and IIFCL to
buy out 40 % of bank loan with each taking 20
% exposure
This releases banks fund and removes risk
from banks
This method is different from take out finance
where only IIFCL is involved
IIFCL has Rs. 8000 idle cash to buy bank loans
86. RBI opens window for New banks
(30/8/11)
Paid up capital Rs. 500 crores
Listing within 2 years
25 % banks branches in rural areas for
financial inclusion
No foreign entity/NRI can hold more than
5 %
10 year successful business track record
Sound credential and integrity
87. RBI opens window for New banks
(30/8/11)
Total foreign holding cannot cross 49 %
Broking and Real estate companies
mostly out of race
RBI to have last and final decision
88. KS Oil – Commodity Death
(30/8/11)
KS oil market cap Rs. 2600 crore last
year now only Rs. 406 crore
Company may become take over target
Started in 1985 by Ramesh Garg from
local farm to plantations in South East
Asia
Edelwiss sold shares of Garg as he
could not pay margin
89. KS Oil – Commodity Death
(30/8/11)
Mastard seeds prices went up 19 % from
October and December 2009
March 2010 when crop arrived prices
crashed 30 % to Rs. 24,400 per tonne.
An then fell to Rs. 23,700 per ton.
90. KS Oil – Commodity Death
(30/8/11)
March 11 March 10
Ch(%)
Net sales 4681 4091
14.41
PBDIT 534 462
15.52
Tax Provi 65 40
64.44
PAT 176 212
-16.67
His ownership has fall from 16 % to 8 %
91. Suzlon Turnaround (30/8/11)
June 2011 it got profit of Rs. 60 crores
vs loss of Rs. 900 crores in June 10
quarter
Order book of Rs. 29000 crores
62 % of order book is from RE Power
books
92. Suzlon Turnaround (30/8/11)
Suzlon ready to buy 5 % remaining stake
in RE Power for Rs. 398 crores
Suzlon gave -27 % return while sensex –
12 %
Total debt at Rs. 12,500 crores
Cash balance of Rs. 3000 crores
93. Usha Throat Recommendations –
NBFC Tighter Rules (30/8/11)
Higher capital adquacy norms at 12 %
New NBFC should have Minimum asset
size of Rs. 50 crores
It should not be from Real estate and
capital market company
In June 2011, banks exposure to NBFC
is Rs. 1,69,000 crores which is 50 % of
its total lending which is risky
94. Top 10 NBFC (Asset wise Rs.
crore) (30/8/11)
Shriram Transport 24,786
M&M Finance 12,165
Sundaram Finance 11,479
Cholamandalam 9,017
Shriram City 8,539
Bajaj Finance 8,066
SREI Infra 7,482
Manapuram Finance 7,577
Magma Fincorp 5,130
First Leasing 1,297
95. Gold imports surge (5/9/11)
Gold Imports was 458 tonnes in 2009
but increased to 918 tonnes in 2010
Household financial saving as % of GDP
was 12.1 % in 2009-10 but decreased to
9.7 % in 2010-2011
96. Gold Imports double in last five
years for India (5/9/11)
Year $ billion % of GDP
2006-07 14.47 1.5
2007-08 16.60 1.4
2008-09 20.43 1.6
2009-10 28.81 2.1
2010-11 33.95 2.0
97. US Unemployment more
Serious (7/9/11)
Unemployment in US was 6 % in 2007
when the crisis had started
Currently it is 9.8 % which is more than
earlier which is more dangerous
98. Ethanol Production (7/9/11)
Ethanol is produced from Molases which
is by product of sugar cane when it is
crushed.
Companies want Rs. 35 per litre
Govt willing to pay Rs. 27 per liter
Cost of production was earlier Rs. 20 per
litre
99. Indian Investors invest huge
abroad (7/9/11)
Corporate investment abroad is $5.5
billion as compared to $ 2.98 billion year
ago.
Individuals invested $ 64 million
overseas as compared $ 62 million year
ago
100. PMI shows clear slow down
Indian PMI falls to 53.8 from 58.2 in
August
China PMI falls to 50.6 shows
contraction is on way
17 Member EURO zone also PMI at two
year low at 51.5
101. IIP falls (13/9/11) and Inflation
soars
IIP data falls from 6.6 % to 3.3% which
shows severe slowdown in the economy
Inflation went up to 9.78 % from 9.22%
which is again very risky
Both the indicators would show the
slowdown in the economy
102. Mantra for Success(9/9/11)
Ambition is a must have, but don’t let it
hurt those around you – Adil Zainulbhai
MD McKinsey India
There is no need to hide your failure but
you do need to flaunt what you have
learnt from it – Harsh mariwala MD
marico
Intellect is good but combine with
HUMILITY and You have unbeatable
combination – Nitin Paranjpe CEO HUL
103. Mantra for Success (9/9/11)
Generalist are OK, but leaders do need
to have a clearly defined area of
extraordinary COMPETENCE – Pramod
Bhasin VC Genpact
Think SOCIETY and not just business –
Kalpana Morparia CEO JP Morgan India
104. India to topple Japan as 3rd
largest economy (20/9/11)
Japan GDP $ 4.31 trillion
India has reached $ 4.06 trillion
This is as per PPP (Purchasing power
parity theory) which uses crude measure
of purchasing one burger at any place in
the world.
In rupee terms India still is only $ 1
trillion economy
105. US to tax Rich persons
(20/9/11)
Warren Buffet Income $ 46 million
Tax rate at 17.7 %
His Secretary Income $ 60,000
Tax Rate 30 %
106. SEBI for MF NFO (20/9/11)
For NFO Equity schemes the minimum
amount Rs. 10 crores
For non Equity funds, the minimum
amount is now Rs. 20 crores
107. Real PE Factor for any firm is
People (20/9/11)
People is the only PE factor capable of
creating value for itself and unleashing
value from the other factor
Key No. 1 Unique value proposition and
market competitive total reward package
to get best “talent”
Key no 2 Build flexible culture with non-
negotiable ethical values
108. Real PE Factor for any firm is
People (20/9/11)
Key No.3 Give customers desired value
for money
Key No.4 Short term focus should not
eat away long term profits
109. Position of women’s in
Corporate world (21/9/11)
Nandeni Sethuraman – Head Marketing
Bharti Walmart jointed sep 2011
Geetu Varma Head, food, HUL, Sep
2011
Anjali Mohanty, Head, Global
Transaction Banking, Deutsche Bank,
Sep 2011
Anupama Ahluwalia, Head, Marketing,
Coca Cola India, June 2011
110. BRIC Statistics (21/9/11)
Country Current Account Deficit
2010 2011
China 5.3 4
India -2.6 -2.8
Russia 4.8 4.5
Brazil -2.3 -2.3
111. Currency Position vs Dollar Dec
2010 to Sep 2011(21/9/11)
Currency Apprec/Deprec
India -6.2
Vietnamese Dong -6.4
Taiwan Dollar -1.6
Hong kong dollar -0.3
Japanese Yen 5.9
Newzealand Dollar 5.2
Australian Dollar 0.6
112. India Fiscal Deficit worrying
(21/9/11)
April July 2011 fiscal deficit is Rs.
2,28,000 crores which is already 55 % of
Rs.4,12,000 crores budgeted for year
Last year same period it was Rs.90,900
crores only
FII have withdrawn $ 1.2 Billion in
August and in 2011 net investment is
only $ 4.4 billion as compared to $21.8
billion last year.
113. Short term rates in BRIC
(21/9/11)
Country Rates (%)
China 3.22
India 8.25
Russia 8.25
Brazil 12
114. Euro Nations debt (26/9/11)
Debt to GDP Ratio (%)
Greece 144.0
Germany 78.7
France 83.5
UK 76.5
Italy debt is higher than the combined of
Portugal, Ireland,Spain
115. STT may Cut (27/9/11)
STT introduced in 2004
Earlier was 0.15 % then reduced to
0.125 % on both buyer and seller for
delivery base trade
0.025 % for intraday and applicable only
to sellers
116. BRICS to take on Developed 5
(3/10/11)
% contribution to world GDP in 1995 of
developed countries was 44.6% which is
now 31.6 % in 2015 while BRICS
increased from 15.8 % to 30.3 % in 2015
BRICS now account for 16 % of global
exports – almost 3 folds rise in last 15
years
117. BRICS to take on Developed 5
(3/10/11)
In 1995 % contribution to world exports
of developed countries reduced from
40.5 % to 27.8% in 2010 and those of
BRICS increased from 6.5 % to 16.3 %
% contribution to Global Portfolio Equity
flows in 1995 63.3% reduced to 27.4 %
for Developed countries while for BRICS
it increased from 5.8 % to 14.6%
119. Indian companies sit on Cash
Pile (17/10/11)
Company FY08 FY11
Coal India 20961 45862
Reliance Ind. 4474 30192
ONGC 25055 28688
NTPC 15360 17859
SAIL 13933 17747
Tata Steel 4231 10892
120. GDP and Inflation (24/10/11)
Governor Time Inflation GDP
Venkitaraman 90-92 12.7 3.9
C Rangaranjan92-97 6.6 6.3
Bimal Jalan 97-2003 4.7 5.7
YV Reddy 2003-08 5.9 8.5
D Subbarao 2008 7.2 7.8
121. NFO Euphoria turns into Gloom (All funds launched in 2006
Rs. Crores (24/10/2011)
Fund NFO Collection Current AUM
Reliance Equity 5790 1215
SBI Blue-chip 2850 752
UTI leadership 2025 667
SBI One India 1854 523
UTI Contra 1145 165
Tatacapitalbuilder 268 109
LIC Nomura Vision253 48
122. World PMI decreases in October
2011 (2/11/2011)
Country PMI Sep PMI Oct
China 51.2 50.4
US 51.6 50.8
UK 50.8 47.4
India 50.4 52.0
123. Power Sector Loans sticky
(2/11/2011)
Total lending to sector Rs.4,80,000 crores
Loans at Risk Rs. 56,000 crores
Banks Exposure
SBI 36,914
ICICI 37,223
Axis Bank 17,110
PNB 6,706
Union Bank 11,902
124. Indian Corporate Earnings
down (21/11/2011)
Sales up 14.3 % lowest in 7 quarters
Operating profit up 4 % lowest in last 2
years
Net profit down by 34.9% biggest fall in 8
quarters
Operating margins14 1.% lowest in 10
quarter
125. World In MESS(24/11/2011)
China PMI to 48
US Economy to have 2 % GDP in 2012
as compared to 2.5 % earlier.
Germany banks fail in Bond Auction
Out of $ 8 billion, 6 billion funded by
Central bank other banks gave only $ 3
billion
US fails to cut deficit of $ 2.2 trillion
126. Indian Economy Troubled
High inflation around 10 %
Rupee Depreciating 52.18
New Pension scheme has violated
investment norms (Corpus of Rs. 9500
crores) of 26 lakh govt employees
127. Real Effective Exchange Rate (REER) (Reading above 100
indicates over valued vice versa
36 basket 6 basket
April 11 104.94 116.48
May 103.03 115.46
June 103.82 115.21
July 104.94 116.83
Aug 102.93 114.64
Sep 100.13 111.46
Oct 11 NA 106.65
128. Retail loans (7/12/2011)
Retails loans portfolio
ICICI bank 40 %
HDFC bank 50 %
Axis bank 21 %
Axis bank plans to increase to 30 %
Current retail loan book at Rs.29,300
crores
129. Jim O Neill – founder of BRIC
word (7/12/2011)
“India should not raise people hope
about FDI and then in week say “We are
only joking”
“India inability to raise its share of global
FDI is very disappointing”
130. Rating of EuroZOne
(7/12/2011)
Country Outlook
Austria AAA –ve Solvenia AA -ve
France AAA –ve Slovakia A+ -ve
Finland AAA-ve Malta A -ve
Germany AAA-ve Italy A -ve
Netherland AAA –ve Ireland BBB+ -ve
Luxemberg AAA –ve Cyprus BBB+ -ve
Belgium AA –ve Portugal BBB- -ve
Greece Cc -ve
Rating below BBB- are considered as JUNK
131. Subsidy Shoots up (8/12/2011)
Fertilizer subsidy to shoot up target by
Rs. 40,000 crores
Food Subsidy pegged at Rs.60,753
crores will also overshoot
Total subsidy could be around Rs.
1,00,000 crores which would widen fiscal
deficit by 5.7 % of GDP.
132. Global Carbon Emissions rise
Global 5.9 %
China 10.4 %
Brazil 11.6 %
South korea 9.2 %
India 9.4 %
USA 4.0 %
9.14 billion tonnes of total Co2 pumped into air
510 million was extra, largest % rise since 2003
US is world second largest emitter of
greenhouse gases after China
133. Trade deficit with China
(9/12/2011)
Total Bilateral trade of india with china is
$ 63 billion in 2010-2011
India imports from China $ 43 billion
Currently 26 % of total imports from
China
Next five years Chinese imports could
touch 75 %
Risky for india as we have strained
relationship
134. PSU Banks on hiring spree
(9/12/2011)
Allahbad Bank 2200
Bank of baroda 4000
Bank of maharashtra 1870
PNB 10500
Uco Bank 2100
Union Bank 10000
135. Food inflation falls (9/12/2011)
Food inflation at 6.6% from 19.1 on
1.1.2011
Food articles have 14.3 % weightage in
wholesale price index
136. Gold Loans soar to Rs.55000
crores (13/12/2011)
Year Loans against gold (Rs. Crores)
FY02 2500
FY07 12000
FY09 25000
FY10 37500
FY11 50000
FY12 55000
Interest rates on gold at 12% to 24 % while
personal loans it is 36%
137. Rupee impact on Economic
(14/12/2011)
Rupee slides negates 11 % decline in
crude prices
Imports $352 billion to get costlier
Government subsidy bill to rise further
Interest cost to go up further with foreign
borrowing
138. % change in currency of major
countries(14/12/2011)
Country % change vs Dollar
India -21 %
Euro -9 %
Japan -1 %
Brazil -18%
China + 1%
Russia -15%
Malaysia -8%
142. IT sector creates more jobs
(26/12/2011)
Company FY06 FY11 Net add
TCS 111407 198614 87207
Infosys 44658 130820 86162
Wipro 53742 122385 68643
Tata Steel 38182 81251 43069
HDFC Bank 14878 55752 40874
Tata Motors 22349 53151 30802
SBI 198774 222933 24159
143. Services vs manufacturing
(26/12/2011)
Only 12% of total jobs are created by
manufacturing sector
Proportion of service sector jobs in total
headcount rose to 46.5% in FY11 from
41.8% in FY06
144. Tata Steel Strength
(29/12/2011)
Tata steel contributes $ 27 billion to total Tata
of $ 83 billion
Tata steel has operations in 26 countries
spread across 5 continents
67% of tata steel revenue is international
2005 Tata steel acquired South East Asia
based Natsteel
2007 Tata steel acquired Corus worth $ 12.2
billion along with 41000 Non Indian workers
146. IPO in mess (3/1/2012)
39 firms raised Rs. 14021 crores in 2011
In 2010, firms raised Rs.69,112 crores
147. Borrowing cost rise for G7
(4/1/12) ($ billion)
The maturing debt burden of G7 and
BRIC has balloned by $200 billion in
2012
Japan 3000 Brazil 169
US 2783 UK 165
Italy 428 China 121
France 367 India 57
Germany 285 Russia 13
Canada 211
148. Ageing BRICs to limit world
growth to 4.3 % this decade
(4/1/12)
46% increase in people aged 65 + in
BRIC by 2020
61 Million decrease in age group 15-24
years by 2030 in China
China factory output to be hit hard
BRIC account for 25 % for world GDP
149. Forex losses looms large
(5/1/12)
Company Forex loss % of PBT
Renuka sugar 464 203
Ranbaxy lab 498 150
JSW Energy 78 81
Tata Power 717 70
Usha martin 120 70
Essar oil 469 69
151. Sebi fines Rs.60 lakhs on
Ranbaxy Ex-Independent Director
for insider trading
Solrex had invested Rs. 200 crores in
Orchid Chemicals.
V K kaul and his wife Bala kaul knew this
information and purchased shares
between March 31,2008 and April
11,2008.
In June 2010, SEBI had fined Rs. 1 crore
Manmohan shetty, former MD of Adlabs
for selling shares.
152. Govt to come with Auction of
shares (5/1/12)
Company Govt holding
Hindustan Copper 99.59
MMTC 99.33
HMT 98.88
National Fertiliser 97.64
RCF 92.50
STCI 91.02
153. ECB cash averts funding crisis
in Europe (6/1/12)
ECB has given banks $636 billion of
three year loans
Two year Italian yields are down 50 bps
Belgian notes also down by 22 bps
154. Trading volumes drop 34 %
worst in world (6/1/12 Mint)
Country Avg Daily trading %ch in last
(Million shares) 3 years
US 12468 -26.3
China 173218 45.7
Japan 48902 33.2
Uk 2260 5.2
Canada 381 -19.3
France 160 11.1
155. Trading volumes drop 34 %
worst in world (6/1/12 Mint)
Country Avg Daily trading %ch in last
(Million shares) 3 years
Germany 539 16.8
Brazil 11317 -20.2
Australia 2523 14.5
Switzerland 57 -17.6
India 872 -34.4
South Korea 3537 -27.2
156. Asset class returns (6/1/12)
Mint
Nifty -24.62%
Cash 3.79 % (Saving Bank )
Debt 8.24 %
Gold 31.72 %
157. KFA turns NPA (6/1/12) Mint
KFA total debt Rs. 6000 crores
Banks loan includes
SBI Rs. 1457 Crores
IDBI Rs. 727 Crores
PNB Rs. 710 Crores
Bank of India Rs. 575 Crores
Bank of Baroda Rs. 537 crores.
KFA reported net loss Rs. 469 crores for july
sept 2011 quarter.
158. US Auto makers post best annual
sales since 2008 (6/1/12) (Million
units)
Company Sales in US % chg YOY
GM 2.5 13
Chrysler 1.4 26
Ford 2.1 11
Honda 1.15 -6.80
Toyota 1.7 -6.70
Nissan 1.04 15
Hyundai 0.6 20
159. Key factors for poor markets
In 2010, FII put in record $ 29 billion
In 2011, FII net sellers to tune of $ 380
million
Sep
160. Jobless rates in EU (9/1/12)
Company % unemployment
Austria 4.0
Germany 5.5
Crez Rup 6.7
Sweden 7.4
UK 8.3
Italy 8.6
France 9.8
161. Jobless rates in EU (9/1/12)
Company % unemployment
Poland 10.0
Hungary 10.7
Ireland 14.6
Greece 18.8
Spain 22.9
162. US Economy improving
(9/1/12)
US share in global exports rising from
low of 8 % in 2008.
FDI inflow in US have picked and are
currently 1.5 % of US GDP compared to
mere 0.5 % share in 2002
US current account deficit has reduced
from 7 % of GDP at height of US
consumption boom in 2007 to 3 % now.
163. US Economy improving
(9/1/12)
For China pay and benefits between
2005 and 2010 rose 19 % annually for
average factory worked in China while
cost of employing US labour increased
by only 4 %.
BCG estimates that by 2015
manufacturing in US will be just as
economical as China for many goods
made for North America consumers
164. US Economy improving
(9/1/12)
US has become self sufficient energy
from low of 68 % in 2005 to now 78 % in
overall energy requirement
Between 1991 and 2001, greenback
appreciated by more than 30% on trade
weighted and inflation adjusted basis.
165. Valuation of Stock Exchanges
(10/1/12)
Chicago Mercantile Exchange valued at $ 16.30
billion
NYSE Euro next is $ 6.8 billion
Singapore Exchange valued at $ 6.6 billion
Johannesburg Stock is valued at Rand 6.2
billion
London stock Exchange valued at 2.2 billion
pound
NSE $ 3.5 billion but BSE less than $ 1 billion
166. New Investments at 5 year low
(11/1/12)
Year Govt Invest Pvt lnvest Total
2010 7.39 11.49 18.88
2011 4.43 6.03 10.46
% chg -40.04 -47.79 -44.57
167. %Decline in 2011 vs 2010
(11/1/12)
Approvals % Decline
CCEA 47.62
CCI 59.26
Ports 90.91
Roads 54.05
6 lane highways 30.28
Communication & It 66.67
168. FCCB Bomb ticking (17/1/12)
Indian corporate have to repay $ 7 billion
worth of FCCB on March 2013.
Rcom ($ 925 million)
Orchid chemical ($ 175 million)
JSW Steel ($ 274 million)
Sterling Biotech ($ 250 million)
169. Slowing Economy (17/1/12)
Period GDP%
Sep 2010 8.9
Dec 2010 8.4
March 2011 7.8
June 2011 7.7
Sep 2011 6.9
170. Indian will do well (18/1/12)
Real GDP per person change from 2007
to 2012 (forecast) % is that Indian will be
better off than their counterparts in
Britain, US, France and Japan.
For India the rise is 34 % while for China
is 50 %
171. US spends on Credit Cards
(18/1/12)
In Nov 2011, Americans spend $ 5.6
billion on Credit Cards Debt
Total credit card debt in the country now
stands at $ 798 billion
172. Insurance Claim Settlement
(18/1/12)
Company Ratio % Claim pending %
LIC 97.03 1.46
HDFC 95.41 0.61
Birla 94.66 0.35
ICICI 94.61 2.25
ING Vysya 90.49 5.19
Overall Pvt 86.05 5.01
Sector
173. Non core Biz come to Brokers
Aid (18/1/12)
Distribtuion & Wealth Mgt (Rs.Crore)
2007-08 1510
2008-09 1340
2009-10 1280
2010-11 1590
174. Non core Biz come to Brokers
Aid (18/1/12)
Profit from fees basedbusiness(Rs.crore)
2007-08 3070
2008-09 670
2009-10 2190
2010-11 1670
2011-12E 400-450
2012-13E 500-550
175. UN says India to shine in
2012(18/1/12)(GDP %)
Country 2011 2012
2013
India 7.6 7.7 7.9
China 9.3 8.7 8.5
EU 1.6 0.7 1.7
USA 1.7 1.5 2.0
World 2.8 2.6 3.2
Even in worst case scenario India GDP
to be 6.7 in 2012 and 6.9 in 2013
176. Life Insurance Premium falls
first time in decade (18/1/12)
Year Pre (Rs.Crore) % fall or gain
06-07 61354 98.84
07-08 78502 27.95
08-09 69364 -11.64
09-10 81690 17.77
10-11 82294 0.74
11-12 62428(Apr-Nov)
177. HNI Portfolio (19/1/12)
Asia Pacific reports from Merrill Lynch
and Capgemini HNI wealth in india grew
by 22% in 2009-10
India HNI population grew from 1.27 lakh
to 1.53 lakh
178. HNI Portfolio (19/1/12)
HNI Portfolio % of assets
Cash 6
Equities 36
Real Estate 23
Fixed Income 26
Cash/deposits
Alternative asset 9
179. Implied volatility &
Nifty(19/1/12)
Year Nifty IV
Dec 2008 10.3 -22
Jan 09 -5.23 1.84
Dec 09 1.54 -8.29
Jan 10 -6.69 10.53
Dec 10 2.91 -13.75
Jan 11 -10.58 37.79
Dec 11 -6.33 8.35
Jan 12 7.13 -17.87
180. Reliance Buy Back (19/1/12)
SEBI guidelines allows companies to
buy back shares upto 10 % of paid up
capital and reserves without
shareholders approval.
With shareholders approval 25 %
In 2005 RIL announced buy back of Rs.
3000 crores but actually bought only Rs.
150 crre
181. Reliance Buy Back (19/1/12)
Current laws ensure that company
spends atleast 25 % of announced offer
size that too within 35-45 days
RIL has cash balance of Rs.61490
crores as on Sep 30, 2011
182. Mutual funds deals (20/1/12)
Natrix Global Asset Mgmt bought 25 %
in IDFC MF for 5.5% of its AUM in Dec
2010
Japan Normura bought a stake in LIC
MF for about 2.5 %
T Row acquired 26% strategic stake in
UTI AMC for 3.6%of AUM in 2010
IDFC bough Stancharts for 5.7 % of
AUM in 2009
183. Mutual funds deals (20/1/12)
Eton Park capital paid 13 % of AUM for 5
% stake in Reliance Mutual fund in 2007
Nippon life Buys 26 % in Reliance capital
for Rs. 1450 crore valuing 6.8% of AUM
largest ever MF deal by foreign firm
184. AUM of top 5 MF (20/1/12)
(Rs.Crores)
Mutual Funds AUM
HDFC mutual fund 88628
Reliance mutual fund 82305
ICICI Prudential 69367
Birla Sun Life 60377
UTI Mutual Fund 57817
185. Real Estate on Hiring Spree
(23/1/12)
985 milion square feet of residential
space is due for delivery between 2011
& 2013
In 2008-10 the delivery was only of 522
million square feet.
20% rise in total number of new hiring
186. Kuwait Investment Authority (KIA) gives $
1 billion to 5 fund houses (23/1/12)
KIA has given $ 1 billion to 5 local
Mutual funds in India
Birla Sun Life Mutual Fund
DSP Black Rock
ICICI Prudential
Canara Robeco Mutual Fund
Franklin Templeton
Each MF has been allocated $ 200
million
187. FII control Sensex(24/1/12)
Country FII $ million % chg index
India -358 -24.64
Taiwan -9074 -20.61
Japan -323 -17.34
Korea -8584 -10.98
Thailand -167 -0.72
Indonesia 2950 3.19
Philipines 1329 4.06
189. Stocks Responsible for
Sensex Crash (24/1/12)
Company Points fall %chg FII Holding
Sterlite Ind -192 -1.79
Tata Motors -188 -0.08
Jindal Steel -143 -2.47
15 stocks accounted for 85 % fall in
Sensex. As on Dec 2011 india has 3000
actively traded shares while Korea 1816,
Taiwan 824, Thailand 545 and Indonesia
440.
190. Large buyback by Global Energy majors from
2007 to 2010 (24.1.12)
Company Backbuy($ billion)
Exxon mobil 100
Conoco Phillips 19
Chevron 13.5
BP 9.6
Shell 7.9
BASF 3.5
RIL 2.1
191. Consumption story (30/1/12)
(million units)
Particulars Total Urban% Rural%
TV 122 47 53
2wheeler 42.5 51 49
Fridge 39.7 68 32
Washer 14.2 82 18
Car 5.6 73 27
PC 5.4 84 16
AC 2.8 93 7
192. FDI flows rise (30/1/12)
FDI flows from january 2011 to Nov 2011
increased by 25 %
Brazil saw rise of 48 %
Total FDI in india $ 50 billion
FDI created 2.16 lakhs jobs
Technology had maximum 146 projects
and growth of 51 % in value of FDI
193. Infra companies had huge
debt (30/1/12)
From 2007 to 2011debt increased
GMR 6.7 times
BGR Energy 5.4 times
IVRCL 5.4 times
GVK 3.59 times
Jaypee Infratech 31 times
194. Unemployment at record high
in EU (1/2/12)
Country Under 25 age% Overall %
Spain 48.7 22.9
Greece 47.2 19.2
Portugal 30.8 13.6
Italy 31.0 8.9
Ireland 29.0 14.5
France 23.8 9.9
UK 22.3 8.4
Germany 7.8 5.5
Eurozone 10.4 EU 9.9
195. CASA Account (1/2/12)
Bank CASA % of total Deposit
IndusInd Bank 26.52
Yes Bank 28
Kotak Bank 28
ICICI 43.6
HDFC 47.7
Axis Bank 42
Bank of India 32.41
196. Sensex best since 1994 Jan
(2/2/12)
January 2012 saw sensex giving return
of 11.3 %
FII bought close to Rs. 11000 crores of
shares
PMI increased to 57.5 from 54.2 in
December 2011
197. Jan 2012 has good data
(7/2/2012)
Rupee gain 7.45 % in Jan highest in 17
years
Sensex up 11.3% in Jan highest in 18
years
RBI cuts CRR from 6 % to 5.5%
Inflation falls to 7.5 % in Dec from 9.1%
in November, food inflation in negative
198. Jan 2012 has good consumer
durable data (7/2/12)
Fiat panel TV sales up 50%
Tablets sales up 40 %
Smartphones 8 to 9 %
Laptops and Desktops 5-6%
Apparel 10 %
199. PE invest in water business
(7/2/2012)
Company PE fund Rs. Crore Invest
Vishwa Infra IFC 26
Pratibha indus Sequoia 3
Waterlife india matrix partner 22
Greywater Tech Nexus venture 9
Vishwa Infra Olympus 240
SMS Paryavaran Aditya Birla 40
Neela Systems Vinod Khosla 64
200. Airlines to import fuel directly
(8/2/2012)
Rs 2500 crores saving for Airlines
industry
Direct import would cost 4-5 % less of
total amount currently paid
Fuel cost account for 40 % of the total
operational cost
203. Bharti Airtel Net profit down 22
% (9/2/2012)
Net profit down 22 % to Rs. 1011 crores
ARPU fell 6% from Rs. 199 to Rs. 187
Loss from African operations Rs.260
crores from Rs. 525 crores last year
204. RBI increases Bank rate to 9.5
% (14/2/2012)
RBI has increased bank rate to 9.5 %
Change has been made after 2003
Currently it was 6 %
The rationale it has to be more than
Marginal Adjust Facility which is 1 %
more than Repo Rate (8.5 %)
205. Interest cost growth lowers
(13/2/2012)(Int.Coverage Ratio)
Sector ICR (times) Sector ICR (times)
Infra 1.45 Pharma 8.56
Retail 2.77 Cement 13.49
Steel 3.03 Infotech 29.00
Power 3.82 Auto 33.13
Real Estate 5.59 FMCG 47.80
Telecom 6.11
Capital goods 7.94 Overall 7.57
206. Interest cost Growth lower in
Dec quarter (13/2/2012)
India Inc Interest expenses grew 42%
YOY
Lower than Sep quarter 55 % growth
Due to rates peak out
207. Best 10 year SIP returns
(13/2/2012)
Mutual Fund SIP 10 year return(%)
Reliance Growth 26.86
DSPBR Equity 25.48
HDFC top 200 25.18
Magnum Global 24.92
HDFC Equity 24.89
Magnum Contra 24.38
HDFC Growth 23.11
208. Best 10 year SIP returns
(13/2/2012)
Mutual Fund SIP 10 year return(%)
Magnum Multiplier plus 22.91
Franklin India Bluechip 22.10
Franklin India Prima Plus 21.97
209. SBI back on track (14/2/2012)
Particulars Rs crore
Net profit 3263
Total Interest income 27661
Total deposits 10,00,965
Net NPA 2.22%
Gross NPA 4.05%
210. Inflation vs NREGA (Dalal steet page 86 feb 2012)
In 2007 Rs. 11250 crores vs Rs.40095 crores in
2012 spend in NREGA
Guaranted 100 working days in a year
Agricuture wages in last 3 years have gone up
by 105 %
46 % of household consuption goes on food
High wages, farm labour cost and shortages
rise which forces govt to raise procurement
price.
211. Inflation vs NREGA (Dalal street page 86
Public Money being wasted
Angaluru village in krishna district in AP
1000 families and 800 registered under
NREGA
100 days at Rs 100 per day
80000 man days of useful work in a year
is impossible in a village
212. Inflation vs NREGA (Dalal street page 86
Agricultural wages labour have gone up
by 2.5 times
Agriculture becoming unviable
Farmers sell land as one acre bring Rs.
10 to 15 lakhs
Money put in FD gives Rs.130000
But cultivating land gives only Rs.
100000
So no incentive for cultivation
213. Inflation vs NREGA (Dalal street page 86
We are promoting dependency and
idleness and destroying work ethic by
promoting instead a welfare ethic
The easily obtained money is spend on
liquor
Rs. 15000 crore worth of liquor being
sold in Andhra Pradesh every year
214. Interesting Data (Dalal street
pg 58 Feb 2012
241 million people would be added to working
population between 2010 to 2030
35 Million people are employed directly in textile
industry
Textile is second to agriculture
Textile industry contributes 14 % to Indian
industrial production and 4 % to GDP
PSU banks have Rs. 10,000 crores exposure to
the telecom companies of which Rs. 7500
crores is secured against assets.
215. India Imports from GULF
(29/2/2012) (Million Metric tonnes)
Country 2009-10 2010-11
Saudi Arabia 27.18 27.36
Iran 21.19 18.49
Iraq 14.96 17.15
UAE 11.60 14.70
Kuwait 11.79 11.49
Qatar 5.41 5.60
Oman 5.39 5.42
216. Economy crawls at 6.1% slowest in 3 years
(1/3/2012)
In Q3 GDP growth at 6.1%
In last quarter that is Q2 it was 6.9%
Sectors Q 2 Q3
Agriculture 3.2 2.7
Manufacturing 2.7 0.4
Services 9.3 8.9
217. BSE shares rise due to
MCX(1/3/2012)
BSE shares now are at Rs. 180
In Dec 2011 they were at Rs. 140
BSE brokers were given 10,000 shares
at Rs. 1 each
They were purchased back at Rs. 5200
Then 12:1 bonus was given which took
the value to Rs. 400 per share
Book value of one BSE share is Rs. 205
218. Structured Products (1/3/2012)
Karvy Private Wealth managed Rs. 21,387 crore allotted
to them in 2011
Capital Guarantee
2 to 3 years lock in
Case:- Rs. 100, maturity 2 years. Rs 85 invested in FD
and Rs. 15 in shares
AT 8 % Rs.16 would be earned in 2 years which makes
85 + 16 = Rs. 100 as principal
Now Rs. 15 in equities say gives 100 % return then Rs.
30 out of it
So total return Rs. 30 + 100 = 130 which means 30%
return in 2 years which is fair enough with capital
guarantee.
219. Nifty PE cheaper than peers
(1/3/2012)
Index Current PE FY13 PE
Japan Nikki 25.43 15.04
US Nasdaq 24.18 13.46
Korea Kospi 21.63 8.56
Taiwan TWSE 19.16 12.99
India Nifty 15.14 13.35
China Shcomp 12.75 8.59
Germany DAX 11.74 9.59
220. Nifty PE cheaper than peers
(1/3/2012)
Index Current PE FY13 PE
Brazil IBOV 11.47 9.41
UK FTSE 11.24 9.57
France CAC 10.84 9.11
Hong Kong 10.03 9.86
Singapore 8.58 12.56
Russia RTSI 5.87 5.91
221. Corporate Bribes in US Rise
(12/3/2012)
$ 1 trillion paid in bribes annually to
governments officials
78 corporations under investigation in
USA
Violation of Foreign Corrupt Practice Act
which is 35 years old
Pfizer, Goldmansach, HP,Wal Mart
222. RBI cuts CRR by 75 basis
points (9/3/2012)
RBI cuts CRR by 75 basis points.
New CRR is at 4.75 %
It would release Rs. 48000 crores into
system.
Earlier CRR cut of 50 basis points had
injected Rs.32000 crores
Totally Rs. 80,000 crores
223. MNC Arms valued more than
parent (14/3/2012)
Indian PE ROE(%)
Astrazeneca 90.3 49.8
Novartis India 15.7 33.8
Kennametal India 26.0 43.0
Honeywell Auto 24.3 28.6
3M India 63.0 30.1
Blue Dart 37.8 28.2
Oracle Fin Ser 19.7 25.7
224. MNC Arms valued more than
parent (14/3/2012)
Parent PE ROE (%)
Astrazeneca PLC 6.2 43
Novartis India AG 14.3 14.1
Kennametal India 12.2 15.6
Honeywell Int 13.6 19.3
3M Co 14.7 27.6
Deutsche Post AG 14.4 27.2
Oracle Corp 15.7 24.2
225. First SME listed on
BSE(14/3/2012)
BCB finance first company to list on BSE
SME
It raised Rs 8.85 crores
Issued 35.4 lakh shares
Shares were priced at Rs.25 but it got
listed at Rs. 27 (gain of 8%)
226. Govt Borrowing in Fiscal 2012
The Govt had initially targeted borrowing
of Rs.4,17,128 crores
Rs. 5,10,000 crores is actual borrowing
done
227. IIP Growth surprises in Jan
2012 (13/3/2012)
Month IIP (%)
July 2011 3.6
Aug 2011 3.4
Sep 2011 2.5
Oct 2011 -5.0
Nov 2011 5.9
Dec 2011 2.5
Jan 2012 6.8
228. Pharma sector on
Tenterhooks(15/3/2012)
Indian pharma market worth Rs. 60,000 crores
15 % growth of industry for last many years
Foreign markets growing single digit
Natco pharma allowed to sell cancer drug at 3
% of Bayer price which is too low
Foreign MNC not happy with allowing
manufacturing and selling low cost version of
cancer drug at fraction of price charged by
patent holder Germany Bayer AG
229. Reduced Poverty numbers
(20/3/2012)
In 2005 population 1140 million & in 2010 it is
1225 million
In 2004-05 no of people below poverty line
407.2 million and in 2009-10 it is 354.7 million
Villages see drop from 37% to 30% in 5 years
GDP in 2004-05 7%, 2005-06 9.5%, 2006-07
9.5%, 2007-08 9.7%, 2008-09 6.5%, 2009-10
8.4%
230. HCC on verge of NPA
(20/3/2012)
Rs. 8100 crore debt
Rs. 3000 crore loans needs to be restructured
27 lenders including SBI, PNB trying to
persuade HCC to pay
Rs. 90 crore interest payment lenders want
from HCC by March 31 to maintain its “standard
status”
Rs.134 crore loss HCC posted in Dec 2011
Rs. 1.5 lakh crore loans likely to be restructured
in Indian banking system this fiscal.
Lavasa project has also slowed down
238. RBI Tightens Norms for Gold
loan NBFCs (22/3/2012)
RBI has directed that companies having
half their assets in gold should have
minimum CAR of 12% Tier I by April
2014
Companies cannot lend more than 60%
of value of gold jewellery
239. PE firms Big losses on Dalal
Street (26/3/2012)
Company Time Price CMP Loss
Punj Lloyd Aug07 275 55 -80%
NCC Aug07 202 50 -75%
Golandas Aug07 275 75 -73%
Welspun Corp June11 225 144 -36%
IDFC July10 176 135 -23%
Max India Dec 10 183 171 -7%
240. GAAR Scares Market
(27/3/2012)
GAAR (General Anti Avoidance Rule)
Aims to tax
FII coming through Mauritius
Participatory Notes (P-Notes)
It may overrule the DTAA (Double Tax
Avoidance Treaty)
241. Sovereign Wealth Funds
(28/3/2012)
Fund $ Billion
Abudhabi Investment 627
Norway Govt Pension 611
China SAFE Investment 568
Saudi Arabia SAMA 533
China Investment Corp 439
Kuwait Investment Authority 296
HK Monetary Authority 293
Govt of Singapore 247
Temasek Holdings 157
Russia National Welfare fund 149
242. ELSS outperforms traditional
tax savers (28/3/2012)
ELSS has given 26 % return in last 10
years and 22 % return in last 3 years
Average inflation in last 10 years is
6.05%
PPF has given 8.10 % in last 10 years
NSC has given 9.10 % in last 10 years
243. BRICS Shining (29/3/2012)
Share of BRICS in world GDP
Year % share
2000 8.4
2010 18.2
2016(Est) 23.8
Source IMF
244. BRICS Shining (29/3/2012
Countrywise share in world GDP
Country % share
India 2.6
Brazil 3.3
China 9.3
Russia 2.4
South Africa 0.6
245. BRICS Shining (29/3/2012
BRICS share in Global Exports
2000 It was 6.9%
2010 it was 16.3 %
BRICS share in FDI Attraction
2000 it was 5.3%
2010 it was 17.8%
246. SEBI norms for listing Stock
Exchanges (3/4/2012)
Bourses must separate regulatory and business
roles before listing
Listing will take place 3 years after SEBI nod
SE have to set up Independent Clearing
Corporation & transfer 25% of profit to
Settlement Guarantee Fund
No single investor should hold more than 5 % in
SE
Exchange, Depository, Insurance cos, banks,
public financial institutions to hold up to 15 %
247. US Improving but Europe in
mess (3/4/2012)
US Factory employment index rose in
March 2012 to 56.1 from 53.2
Country Unemployment
Spain 23.6%
Greece 21%
Portugal 15%
Ireland 14.7%
Austria 4.2%
248. US Back on Track (4/4/2012)
In 2011, US household consumption was
$ 10.7 trillion
70 % of GDP of US goes into Household
consumption
China size in 2011 was $ 7 trillion
Unemployment rate down at 8.3 %
250. Close loss making urban bank
branches (9/4/2012)
India has 60,153 ATM
41 % owned by State Run Banks
ATM viable only if 200 transactions per
day is there
Private sector bank becomes profitable
within 10 to 12 months of its operations
Finance Ministry requires Rs. 3.5 lakh
crore over next 10 years to capitalise
state run banks
251. Close loss making urban bank
branches (9/4/2012)
74000 total branches are there in India
20 % are in Rural India
Only 5 % of 6 lakh villages in india have
branches (5 % of 6,00,000 = 30000)
SBI alone has 16294 ATM
252. Cheap Swiss Loans for Indian
firms (10/4/2012)
Indian firms have raised debt at below 9
% in Switzerland including hedging cost
Local lenders in India would give at 11.5
% to 12%
Hedging cost in Swiss franc is about
10% to 15 % lower than US dollar
253. Cheap Swiss Loans for Indian
firms (10/4/2012)
Company $ million Swiss franc
SBI 325
REC 200
EXIM Bank 175
Union Bank 160
IDBI 110
254. China Surprises with Trade
Surplus (11/4/2012)
Feb 2012 Trade deficit of $ 31.5 billion
March 2012 Trade surplus of $ 5.35 billion
Exports to US 10.4 % up
Exports to EU 3.1 % down
Year Trade surplus
2008 $ 296
2009 $ 196
2010 $ 183
2011 $ 155
255. SEBI new rule creates
problems for PE(11/4/2012)
Alternative Investment Funds (AIF)
cannot raise fresh funds unless
registered with SEBI
Already PE firms are in midst of raising
Rs. 26000 crores
In 2012 till March 2012 No. of PE funds
15 raised $ 2.23 billion
PE real estate funds 9 and raised $ 3.01
billion
256. SEBI new rule creates
problems for PE(11/4/2012)
New AIF rules mandate that investors
should minimum invest Rs. 1 crore
Not more than 1000 investors should be
there
Private Equity Fund Manager should
contribute minimum 2.5 % of total corpus
257. India Current Account Deficit
threatens (11/4/2012)
Current Account Deficit 4.3 % of GDP
Current Account Deficit should not be more
than 3 %
In 1991 crisis CAD had touched 4 %
1991 government had depreciated rupee by 24
% in 3 days
Borrowed $ 2.2 billion from IMF
Pledged 67 tonnes to gold with Bank of
England and Swizz Bank to raise $ 600 million
as foreign flows had dried up.
258. India per capita income
(16/4/2012)
India is above $ 1175 per capita income
cut off for consessional IDA funds
2010 per capital GNI (In $)
Bangladesh 700
India 1330
Pakistan 1050
Vietnam 1160
260. India to increase IMF
quota(23/4/2012)
India quota at IMF would increase from
2.44% to 2.75% after completion of
quota reforms
In absolute terms, india quota would
increase from SDR(Special Drawing
Rights) 5821 million to SDR 13114
million
261. Indian bond market attractive
for FII (23/4/2012) (rs.crore)
Year FII Debt
2007 9428
2008 11772
2009 4563
2010 46408
2011 20292
2012 19213 (april 2012)
FII can invest $ 15 billion in Govt Bond
FII can invest $ 20 billion in Corp Bond
Corp bond in US give 1.95% and Germany 1.85 % while
in India it is 9.6 %
Indian Govt Bonds yield is 8.2 %
262. Reliance Result (23/4/2012)
Net Profit down 21 % to Rs. 4236 crores
Revenues up 16 % to Rs. 87000 crores
Oil and gas revenues fell 36.5%
refining and petrochemical segments rose
17.7% and 14%
Oil & Gas
Net sales Rs12898 crore versus Rs 17250
crore, down 25.2% YoY
EBIT margin: 40.7% versus 36.8%, y-o-y
EBIT margin 3.3% versus 4.3%
GRM $8.6/bbl versus $8.4/bbl
263. Entry load in MF needed
(25/4/2012)
Only 200 distributors have gross revenue of Rs.
1 crore
Out of this 200, 20 are banks and institutions
16000 odd active distributors only 185 IFA are
earning Rs. 1 crore gross revenue
In Singapore front load is 3% and expense ratio
is 2.5 %
Investors there pay in excess of 5 % to fund
managers
264. India to get higher IMF quota
(26/4/2012)
India will pay Rs. 56,469 crores total for higher quota at
IMF
Cash Rs. 14,346 crores
Rs. 42,123 crores in local currency bonds
Current Proposed
Quota
2.44 % 2.75%
Vote
2.34% 2.69%
Quotas are assigned on basis of country relative position
in world economy. India will be among top 10 countries in
terms of quota
266. China one child policy
hurting ? (27/4/2012)
China has currently 120 million people between
20 and 24 years age
This would drop by 20 % in next decade
1979 china put one child policy
China population will peak at 1.4 billion in 2030
US couples have average 2 children
US and Europe took 100 years to become
aging societies, China has taken less than 40
years to become aging society
267. Mutual funds lose 8 lakh
Equity folios (2/4/2012)
From Arpil 2011 to march 2012 over 8 lakh
mutual fund equity folios have closed
AUM bifurcation (Rs. 5,87,000 crores)
Banks/ FI 2.3 %
Corporates 43.1%
FII 0.7%
HNI 26.6%
Retail 27.4 %
268. GDP Growth Result of luck or
efforts ? (27/4/2012)(Moneycontrol)
from 1985-86 to 1990-91, the economy grew by an average of 5.6 percent. In
the next six years (1991-92 to 1996-97), which included the glory years of
Manmohan Singh’s reforms, we grew by all of 5.7 percent. In other words, by
just 0.1 percent more, despite the big-bang reforms.
In the six years after that (1997-98 to 2002-03, which covers the second half of
the United Front government and most of the NDA), the economy actually
tapered down to an average of 5.23 percent, before finally taking off by an
average of 8.45 in the next eight years.
The rebound in the economy that started in the last year of the NDA (2003-04)
continued till 2010-11 – a full eight years – with a strong dip in 2008-09 during
the Lehman crisis.
What this suggests is that it is the 2003-11 period that was the aberration, and
not the earlier periods, when we were doing 5-6 percent after reforms. Thus we
could revert to this mean if we don’t reform aggressively now. But even if we
do reform, we are likely to see a growth slowdown over the next three-to-five
years because reform, by definition, means the system will have to adjust to
new shocks. Shocks initially bring growth down: in the year after
Manmohan Singh’s reforms, India’s GDP growth in 1991-92 crashed to 1.4
percent before rebounding to 5.4 percent.
270. 10 Top countries with highest
gold reserves (2/5/2012)
Country Tonnes % of ForexRes
US 8133 77.1
Germany 3396 74
IMF 2814 --
Italy 2451 73.8
France 2435 73.3
China 1054 1.8
Switzerland 1040 18.6
Russia 879 9.7
Japan 765 3.3
Netherlands 612 62.5
Source:- World Gold Council
271. BASEL III Norms (4/5/2012)
Basel III are guidelines framed by a committee
of central banks that s based in Basel,
Switzerland. RBI is also member of that
committee.
Basel III has introduced many elements of
capital such as clearly defined common capital
that measures core equity capital in relation to
its total risk weighted assets
Incremental equity requirement in Indian
banking industry may go up as high as Rs.3.2 –
4 Trillion over next 6 years
272. BASEL III Norms (4/5/2012)
Banks to maintain minimum 5.5 % in common
equity as against 3.6% now by March 31, 2015
Banks must create a capital conservation buffer
consisting of common equity of 2.5% by March
31, 2018
Banks should maintain a minimum overall
capital adequacy ratio of 11.5% against 9 % by
March 31, 2018
Banks must supplement risk based captial ratio
by maintaining leverage ratio of 4.5%
273. Reliance Fined Rs. 6600
crores (4/5/2012)
Year Planned output Actual
2009-10 27.62 39.31
2010-11 53.40 48.13
2011-12 61.88 38.61
2012-13 80.00 20.20
2013-14 80.00 14.00
Output fell as RIL did not drill wells as per
Amended Initial Development Plan (AIDP)
RIL says drilling more well would not have
helped due to unexpected geological
complexitites
274. PE and P/BV of Blue Chip Stocks
(capital market April 2012) page 8
Company Debt/Equity PE P/BV
RIL 0.5 12 1.6
Tata Steel 1.9 5.0 1.3
Rcom 0.8 23.3 0.4
ICICI Bank 0.0 16.2 1.8
L&T 1.3 18.7 3.2
DLF 0.8 25.1 1.4
Suzlon 1.8 16.5 0.6
JP Associat 3.5 22.3 1.6
275. Infrastructure Sector (capital
market page 11 april 2012)
Rs. 50 lakh crore in 12th
Five year plan (2012-2017)
Half to come from private sector
Investment in infrastructure was 5.7% of GDP in Eleventh
five year plan and now it is 8% in last year of 12th
Five
year plan.
FII investment limit in govt bonds, corp bonds increased
from $ 5 billion to $ 20 billion in govt bonds and $ 25
billion in corp bonds
Withdrawal tax on interest payment has been reduced
from 20 % to 5 % for 3 years
Investment linked deduction for capital expenditure
increased at 150 % from 100% cold chain, warehouse,
hospitals, fertilizer, affordable housing.
276. Debentures trading at discount to face value
(capital market page 81 april 2012)
Company Rate (%) MP Rating
Shiram tran 11.35 995 AA+
Muthoot Fin 12.25 977 AA-
IndiaInfoline 11.70 952 AA-
Religare Finv 12.25 983 AA-
FV Rs. 1000.
277. Equity for all (8/5/2012)
Equity as an asset class has grown to
nearly $ 55 trillion at end of 2010
This is near to 87 % of world GDP
India has 1.5 crore individuals out of 2.5
crores tax payees
Even if 1 crore invest Rs. 50,000 in Rajiv
Gandhi Equity scheme the corpus
comes to be Rs. 50,000 crore
This can act as counter force to FII
278. Equity for all (8/5/2012)
Rajiv Gandhi Equity Saving Scheme
France adopted this strategy in Loi Monory
scheme in late 1970
In five years household investment in France in
equities increased from 7 % to 17%
Germany, Belgium and Sweden also copied
this scheme with good results
In Sweden one sixth of population was
converted into investors in equity.
279. World Biggest companies
(10/5/2012) ($ billion)
Company Sales Market value
Exon Mobil 433.5 407.4
JPMorgan Chase 110.8 170.1
General Electric 147.3 213.7
Royal Dutch Shell 470.2 227.6
ICBC 82.6 237.4
HSBC Holding 102 164.3
PetroChina 310.1 294.7
Berkshire Hathway 143.7 202.2
Wells Fargo 87.6 178.8
Petrobras Brasil 145.9 180.0
280. Mumbai Home Prices
(14/5/2012)
Avg price per square feet (Rs)
June 2008 8100
June 2009 5600
March 2012 10833
Total unsold stock is 120.42 million
square feet. At current absorption rate, it
could take 40 months to get rid of this
inventory
281. Mumbai Home Prices
(14/5/2012)
No of months needed to sell Inventory
(2011-12)
Q1 40
Q2 36
Q3 44
Q4 40
Sales are up 3 % from year ago and 20
% since last quarter
282. Inflation rises (14/5/2012)
Inflation spiked to 7.23% on the back of
higher manufacturing and food inflation.
Analysts on average had expected it
around 6.7%.
283. Sensex 1986 to 2012
(17/5/2012)
Event Year High Low
Harshad scam 92 4487 2131
Dotcom Bust 2000 5934 3181
Global melt 2008 20827 8966
Euro 2010 20852
15175
284. Sensex 1986 to 2012
(17/5/2012)
Year Min Ret Max Ret prob of loss
1 year -25.3 % 84.5% 25.8%
2 year -15.4% 66.1% 20.0%
3 year -11.7% 58.3% 6.9%
5 year -3.4% 44.8% 7.0%
10 year 1 % 31.1% 0.0%
285. Spain again into Recession
(18/5/2012)
Spain has again slipped into recession
It has go offer 5 % to attract buyers with
year of 5.106 % vs 3.374 % for 3 year
bonds
286. Rupee vs IT sector
(18/5/2012)
1 % fall in rupee results in 30-40 basis
point rise in operating margins
Out of $ 100 billion export revenue of IT
and BPO of Indian sector, 58 % was
from US.
287. Gold demand in China more
than India (18/5/2012)
India gold demand at 207.6 tonnes
China gold demand at 255 tonnes
Gold ETF have grown 3 times in last one
year
AUM of Gold ETF is Rs. 9614 crore in
January 2012 vs Rs 3518 crores in
January 2011
288. PE/VC Investment in
Healthcare (18/5/2012)
In Care Hospitals – Advent India PE
invested Rs. 560 crores
In Vasan Healthcare – Govt of
Singapore investment corp invested Rs.
543 crores
Moolchand healthcare – Seqola Capital
invested Rs. 100 crores
Wellspring Healthcare – Reliance
venture capital invested Rs. 20.5 crores
289. Foreign claims on India $ 137
billion due in 1 year (18/5/2012)
As per Bank for International Settlement, claim
due on india in next one year is $ 137 billion
Currently india has $ 293 billion forex reserves
European banks account for 40 % of India total
foreign dues
Leaving UK out, India Euro Zone exposure is
about $ 60 billion which is 3.4 % of India GDP
290. Face book IPO big hit
(19/5/2012)
the company's closely watched stock began
trading at USD 42.05,
compared with an IPO price of USD 38 .
USD 18.4 billion in one of the biggest initial
public offerings in US history.
With a value of USD 104 billion, Facebook
became the first American company to debut at
over a USD 100 billion. It is larger than
Starbucks Corp and Hewlett-Packard
combined.
The website, founded in a Harvard dorm room
in 2004, has grown into the world's dominant
social network with 900 million users.
291. Facebook highly overvalued
(21/5/2012)
PE for face book is at 108
PE for market in US 14
PE for Google is 18
Price to Sales Facebook 26
Price to Sales LinkedIn 17
Google makes $ 35 for each user which
is 7 times more than Facebook
292. Black Money – A Hype
(22/5/2012)(Rs.crore)
Indian deposits in Swiss Banks
Year ExRate Liability % of
towardIndian total Liabi
2010 47.79 9295 0.13
2009 45.19 8879 0.13
2008 45.52 10924 0.12
2007 34.79 14979 0.18
2006 36.17 23373 0.29
293. Black Money – A Hype
(22/5/2012)(Rs.crore)
FDI Inflows (2001 to 2011)
Mauritius 41.80% Japan 4.07%
Singapore 9.17% Cyprus 3.71%
USA 7.28% Germany
2.31%
UK 5.12% France
1.75%
Netherland 4.39% UAE 1.46%
294. Black Money – A Hype
(22/5/2012)(Rs.crore)
Swiss bank liability towards countries in
2010
Foreigners hold More Money
Offshore financial centre 28.9%
UK 21.5%
USA 15.8%
European countries 6.8%
Germany 3.6%
295. Corporate Debt Restructuring
becomes more strict (22/5/2012)
CDR is a platform where lenders and corporates meet to
restructure loan
Objective is to ensure that company does enter financial
trap
Company promoters misuse company funds and then go
to CDR
Banks now to hike promoter contribution to 20-25 % and
seek personal guarantee
Banks to have power to change incompetent
management if found diversion of funds or misuse of
funds
Banks have to restructure loans worth Rs. 1,50,000
crores
296. India still better than world
(23/5/2012)
GDP 2011 2012 2013
USA 1.7 2.4 2.6
UK 0.7 0.5 1.9
Eurozone 1.5 -0.1 0.9
OECD 1.8 1.6 2.2
China 9.2 8.3 9.3
India 7.3 7.1 7.7
297. IPO fails (30/5/2012)
Year IPO % Sensex%
3 years -18.69 4.71
1 year -18.59 -10.12
6 months 1.79 1.54
298. Venture Funding picking up
(31/5/2012)
From January to May 2012 64 new start
up got Rs. 1351 crores of venture
funding
In 2011, funding in first time ventures
crossed $ 1 billion mark
299. GDP at 9 year low (31/5/2012)
GDP at 5.3 % which is at 9 year low
India’s economy grew 5.3% during
January-March (Q4), the eighth
successive quarterly decline, and the
slowest pace in nine years. For the full
year, the economy grew 6.5%.
India's fiscal deficit during the 2011-12
fiscal year that ended in March was Rs
5,20,000 crore, or equivalent to 5.9% of
India's gross domestic product
300. Why buy gold ? (4/6/2012)
35 % buy for auspicious events like
marriage,
20 % buy as investment
16% buy as back up for bad times
15 % buy for giving gifts
8% impulses or no reason
6% Fond of gold
301. Eurozone revamp (4/6/2012)
July 9 is the deadline for creating
Permanent Euro Area Rescue fund, the
$ 620 billion European Stability
Mechanism
302. Indian Inc Improving but slowly
(4/6/2012)
Analysis of 2302 companies in march 2012
Revenue increased by 13.5% yoy
Net Profit fall 8 % in March 2012 as compared
to 20.6 % in Dec 2011 and 37.9% in Sep 2011
Operating Profit margin at 14.3 %
Interest cost jumped to 47.4% to Rs.30,123
crores is at record high in history of Indian Inc.
Interest Coverage Ratio is at 3.8 vs 3.4 which is
heartening (ICR should go up)
303. FII net sellers in May
(7/6/2012)
FII were net sellers to the tune of Rs.
1100 crores in May
FII confidence low as policy paralysis
hitting all reforms
Month FII flows (Rs.Crores)
Jan-Feb + 44000 crores
March + 8000 crores
April - 777 crores
May - 1100 crores
304. China cuts rate (8/6/2012)
China has cut one year deposit rate from
3.5 % to 3.25 %
Lending rate cut from 6.56 % to 6.31%
Rate cut after 2008 to boost economy
305. Active managed funds create
wealth (11/6/2012)
Fund 5 years return %
IDFC premier equity 15.31
UTI opportunities 12.69
ING Vysya Dividend yield 12.16
Birla Sun life Dividend yield 11.92
UTI MNC 11.78
Birla Sun life MNC 11.70
Tata Dividend Yield 11.45
UTI Dividend yield 11.42
ICIC Pru Discovery fund 11.13
HDFC Top 200 10.12
Canara Robeco Equity 10.16
NIFTY INDEX 3.54%
306. Years of NIL return from Indexes
world over (11/6/2012)
Country Years with NIL return
Japan Nikki 225 29.3
Spain IBEX 35 15.12
France CAC 40 14.95
UK FTSE 100 14.45
Germany DAX 13.95
US Nasdaq 12.95
Russia Micex 6.36
US Dow Jones 5.53
China Shangai 5.53
Brazil 5.03
India Sensex 4.78
From 1992 to 2003 Sensex actually reduced by 33 % i.e long
holding of 11 years
307. FII no and sub accounts
(11/6/2012)
As on June 8, the number of registered
FIIs in the country stood at 1,754 and
total number of sub-accounts were 6,343
during the same period.
308. Gold Prices reality (14/6/2012)
In FY 2011-12, India imported $ 56 billion worth
of Gold
August 1, 2011 gold was $ 1621 per ounce
June 8, 2012 gold was $ 1571 per ounce
Loss of 3 %
But during the same period Rupee depreciated
from Rs. 44.07 to 55.62 per USD
Rupee fell by 26.19 %
Gold during period rise from Rs.23150 to Rs.
29680 per 10 grams
309. PE Struggle to Exit broking
houses (15/6/2012) ($ million)
Company PE Stake
Amt
Prime Security Newvernon 6.8 12.4
Bonanza Gaja capital 11.6 5.94
Karvy Baring Asia
ICIC venture 40 110
Angel IFC 12.5 37
PL Balyasny 2.8 10
JRG Baring India 45.9 35
Anandrathi Citi 19.83 20
310. Motilal Oswal raises Rs. 475
crores for 2nd
PE fund (20/6/2012)
Motilal Oswal has raised Rs. 475 crores
Out of 475 crores – Rs. 100 crores from
Hong kong based Sqandran Capital
Advisor
Remaining Rs. 375 crore from HNI
investors
311. “Rcom poster boy for everything
that could go wrong” (20/6/2012)
Neeraj Monga of Veritas Investment Research believes
various mergers and amalgamations have led to the Rs
22,000 crore “inflated book equity” of
Reliance Communications
The stock is trading at Rs 60. So the market doesn’t
really believe in the book value of the company. We’ve
just come out and said it very clearly,” he claims.
In its June 8 report, the Canada-based equity research
had assigned a value of Rs 15 to the stock of Anil
Ambani-promoted telecom firm, citing high debt,
"whimsical" accounting policies and poor corporate
governance standards as the key reasons.
312. India contributes to IMF war
chest (21/6/2012)
Country Contribution to IMF
India $ 10 billion
Brazil $ 10 billion
Russia $ 10 billion
China $ 43 billion
South Africa $ 2 billion
IMF will issue bonds and pay interest to
countries. This is war chest that IMF has made
which has $ 456 billion but target is to create $
550 billion
313. Electricity shortfall (21/6/2012)
Region Installed Supply Shortfall
North 49919 39798 10121
West 57108 46330 10778
South 39645 32763 6882
East 29802 21057 8745
N East 2095 1697 399
This reduces industrial production and adds to
idle capacity causing losses to companies
Figures in Mega watts
314. Manufacturing slows down
world over (22/6/2012)
China factory sector shrank for eight
straight month in June
PMI fall to seven month low of 48.1 in
June from 48.4
US PMI has come down to 52.9 from
54.0
10 year Spain and Italy bonds are
quoting 7 % yield showing that attracting
investors is becoming more difficult
315. Claim Settlement Ratio for
insurance firms (22/6/2012)
Company Settlement Ratio Pending %
LIC 97.03 1.46
HDFC life 95.41 0.61
Birla sun life 94.66 0.35
ICICI 94.61 2.25
ING Vysya 90.49 5.19
Private Sector
(overall) 86.05 5.01
316. PMLA getting tough
(22/6/2012)
69,224 suspicious transactions received
by FIU India
53,384 reports were forwarded to Law
Enforcement agencies and Intelligence
agency
Travel agents, vehicle dealers have to
report to FIU Ind for suspicious dealings
317. Weak show of MF SEBI ask
questions (22/6/2012)
SEBI planning to call MF fund managers
who have consistently performed badly
Scheme Return% Benchmark %
JM Basic -10.30 5.52
Escorts Power -9.17 -13.05
JM Core 11 -9.07 5.17
SBI Infra fund -5.96 5.22
L&T Infra -5.56 5.87
318. FCCB Issuers may Default
(22/6/2012)
3i infotech, Great offshore and Hotel Leela
ventures may default
48 companies hold FCCB that mature this year
Value of FCCB maturing this year $ 5 billion of
which $ 2.1 billion will come up for June and
July 2012
Rupee in 2007-08 Was Rs. 42 per $
In 2012 it is Rs. 56 per $
The depreciation could add Rs. 10,000 crore on
redemptions
319. CCI imposes Rs. 6307 crore fine on 11
cement companies (20/6/2012)
Company Penalty (Rs. Crore)
Jaiprakash Asso 1323
Ultra Tech cement 1175
Ambuja Cement 1163
ACC 1147
Lafarge India 480
Century Textiles 274
Madras cement 258
India cement 187
Binani cement 167
JK cement 128
CMA 0.73
320. FMC cautions for trade
changes code (26/6/2012)
Client code modification is done to transfer
trade from one account to another account
It is mostly done in Jan, Feb and March to avoid
tax
From October 2011 to march 2012 CCM was
1373 from 1,00,620 in October 2010 to March
2011
In terms of volume it has reduced from Rs.
25000 crore to Rs. 216 crore
321. FII power (28/6/2012)
FII have assets under custody of more
than $ 200 billion
17 % of market capitalization
40% of free float shares in Indian stock
market
FII invested $ 32 billion in Indian debt
market
322. Bittersweet Ethanol Pricing
(28/6/2012)
Government has decided Rs. 27 per litre
for ethanol to be sold to oil companies
Earlier price was Rs. 21 per litre
Oil companies say that cost of making
petrol is Rs. 23 per litre and paying more
than this for making ethanol will make
blending unviable
323. On mobile Corporate Governance
issues (29/6/2012)
KPMG checking Onmobile books for financial
bungling Rs. 3000 crore mkt value in 2008
Rs. 400 crore current market value
CEO Arvind Rao who is founder is at center of
investigation for taking away funds
Again Corporate Governance issue shows that
wealth of shareholders destroyed
Stock trading at Rs. 33 lowest in lifetime
324. Monsoon Vs India (2/7/2012)
Share of Agri & Allied activity in GDP (%)
Year %
1970-71 43.9
1980-81 38.3
1990-91 33.0
2000-01 25.3
2011-12 16.0
Store capacity in large dams was 177 billion
cubic meter in 1995 which is currently at 253
billion cubic meter
325. Monsoon Vs India (2/7/2012)
Rainfall % of normal Agri Growth %
2007-08 106 % 5.5
2008-09 98% 0.4
2009-10 78% 1.7
2010-11 102% 7.0
2011-12 101% 2.8
327. Textile sector loan recast
(2/7/2012)
Textile sector has debt of Rs. 35000
crore
35 million workers work in textile sector
The package involves Rs. 22000 crore
term loan, Rs. 5500 crore working capital
loan and Rs. 7500 crore loan for SME
units.
328. Airlines Industry wants FDI
(3/7/2012)
Airlines Industry growing at 20 % per
annum
By 2015, 180 million people in India to
travel by airways
Indian Aviation sector 9th
largest in world
329. Barclay CEO Robert Diamond
in LIBOR mess (5/7/2012)
Robert Diamond the CEO of Barclay
bank has step down
Barclay has been accused in
manipulating LIBOR which is
international rate for lending and
borrowing.
330. PE investors invest in real
estate (5/7/2012)
Target Acquirer RS crore
Sheth Devel Morgan stanley 461
3C company Red Fort 150
RMZ Corp Baring Pvt Equ 500
Phoenix Ascendas 176
Suntech Reality Kotak 310
331. Globally banks cut rates
(6/7/2012)
ECB cuts rates by 0.25 % which now
bring rate to 0.75 %
China reduced 1 year lending rates by
31bps and deposit rate by 25 bps
332. Mumbai real estate slow down
(6/7/2012)
In Mumbai 80,000 residential units are
unsold
Value comes to Rs. 1,00,000 crore
Buyers shun property market due to poor
sentiment and higher Interest rates
333. Reasons for China
slowdown (9/7/2012)
China has $ 2.5 trillion forex reserve but household and
corporation debt is 120 % of GDP and including banks it
goes to 200% of GDP
Real estate bubble as $ 10 trillion is in money circulation
than in US $ 8 trillion
China has invested 9 % of GDP in real estate which is
now bubble which is even higher than Japan and US
which was real estate bust in 2007
In last 3 decades research on 124 nations shows that 52
% were democratic and 48 % authoritarian. Political
system does’nt matter for growth
334. EU stock market return post
Euro introduction (9/7/2012)
Returns since euro
launched
Belgium -37 %
Finland -8%
France -20%
Germany -28%
Greece -77%
Ireland -36%
Italy -58%
Netherlands -42%
Portugal -57%
Spain -42%
335. MF Distributes commission
despite ban (11/7/2012)
Top 240 distributors have earned Rs. 1830
crore commission in FY 12
This is 8 % more than last year
HSBC, HDFC and Citibank have earned the
most
30,000 small agents are out of business since
they could not run without commission
45 % of equity fund sales comes from
Independent Advisors as against 29 % by
banks
336. Banks mobilize NRE deposits
(11/7/2012)
Banks mobilize $ 10 billion through NRE
deposits
Banks are offering 9 % to NRE deposits
for one year
337. Arbitrage funds score over debt
and equity funds (17/7/2012)
Arbitrage Funds 1 year return (%)
IDFC 9.8
JM 9.4
UTI spread 9.3
Reliance arbitrage 9.2
SBI arbitrage 9.1
HDFC arbitrage 8.9
Kotak equity arbitrage 8.9
Religare arbitrage 8.8
Debt funds have given avg return of 8.4 % while
equity funds value dipped by 4.1 %
338. Gold demand rises
(30/7/2012)
Indian households have $ 950 billion
gold
US Mine production data
2010 231 tonnes
2011 237 tonnes
US Geelogical survey reports US has
3000 tonnes of Gold reserves
North America accounted for 16.1 % of
total output in 2011
339. Gold funds failed as compared
to Gold ETF (30/7/2012)
Funds One year return %
SBI Gold ETF 28.04
Reliance Gold ETF 28.03
Religare gold ETF 28.01
UTI gold ETF 27.97
Quantum gold 27.96
DSP Blackrock world gold -11.5
AIG world gold fund -16.5
340. FII buys in July (30/7/2012)
During July 3-27, Foreign Institutional Investors (FIIs) were
gross buyers of shares worth Rs 44,192 crore, while they sold
equities amounting to Rs 35,768 crore, translating into a net
inflow of Rs 8,424 crore
After taking the latest inflows into account, FIIs investment in
the equity market stood at Rs 50,417 crore so far in 2012 and
Rs 24,048 crore into the debt market during the same period.
As on July 27, the number of registered FIIs in the country stood
at 1,756 and total number of sub-accounts were 6,341 during
the same period.
341. FII investment in 2012 in Rs.
Crore (2/8/2012)
Month Net FII Flow
January 10357
February 25212
March 8381
April -1109
May -347
June -501
July 10271
342. Proposed STT to hurt market
AT present investor pays Rs. 100 per
Rs. 1 lakh turnover on delivery base
tranaction
Rs. 17.33 per lakh on sale of
derivatives.
Service tax of 12.36%
This increases the transaction cost
343. Eye on low tax paying sector
(4/9/2012)
Corporate tax is 30% but average tax
rate comes to 24 %
Certain taxes are in range of 10% to
22%
If the average tax rate is incresed from
24 % to 26% then also govt will get Rs.
30,000 crores
344. Exports down 35 month low
(4/9/2012)
For april to july 2012, exports have fallen
by 5% to % 97.6 billion compared with $
102.8 billion las year
Slow down in exports clear show that
world economy is slowing
345. PMI data for world (4/9/2012)
Countries July August
India 52.9 52.8
Russia 52.0 51.0
UK 45.2 49.5
China 49.3 47.6
France 43.4 46.0
Germany 43.0 44.7
Spain 42.3 44.0
346. Two wheelers on bumpy road
(6/9/2012)
Company Fall in sales in August
Hero Motocorp - 12 %
Bajaj Auto - 14%
Hondo motorcycle 39 %
TVS - 17%
Suzuki Motorcycle 36 %
Mahindra - 34 %