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.

1. Current
Developments in
Economy
Dr. V. Aditya Srinivas

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.

67. Sovereign Wealth
Fund(12/8/11)
 UAE investment authority $ 627 billion
 Norway/Govt Pension fund $512 billion
 China/SAFE Investment Co $ 347 billion
 China/China Investment Corp $ 332
billion

68. Car sales in China (12/8/11)
 1.01 million is number of passenger cars
sold in China in July

69. Insurance Penetration
 World average life insurance 4.5 %
 India average 4 %
 Non life penetration only 0.6 %

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

73. Primary Deficit (18/8/11)
 Ireland 29.7
 France 4.8
 Spain 7.8
 Portugal 4.6
 Belgium 1.3
 Germany 1.1
 Italy 0.2
 Greece 3.2

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

80. Gross NPA Sector Wise (25/8/11)
 Unsecured and student loans 4.96
 MSME loans 4.24
 Auto loans 4.01
 Agri loans 3.74
 Asset Finance 3.26
 Home loans 2.23
 Corporate & Institutional 1.52
 Loan against security 0.30

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%

118. FDI inflows ($ billion)
 Year $ billion
 2006-07 22.8
 2007-08 34.8
 2008-09 37.8
 2009-10 37.8
 2010-11 27.0
 2011-12(April-Aug) 17.4

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%

139. Losses of Sensex & Nifty
(13/12/2011)
 Sensex -21.5 %
 Nifty -24 %
 RIL -28.5 %
 Infosys -21.5 %

140. Consumption to GDP
(12/12/2011)
 Consumption to GDP of China is 33 %
 Consumption to GDP – USA is 70 %
 Consumption to GDP – india is 60 %

141. Foreign Borrowings hurting
(Rs crores)
 Foreign currency loan total loan
 Rel com 20351 34896
 IOC 18074 73296
 Tata Steel 14464 28716
 HPCL 13687 31253
 BPCL 10698 24734
 NTPC 9334 47461
 AbanOffshore 8258 13425

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

145. BSE NSE cash volume
crashes (3/1/2012)
 Period 16-31 Dec Volume
 2007 26239
 2008 14263
 2009 17246
 2010 15034
 2011 9911

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

150. Cash market volumes on BSE
and NSE (5/1/12)
 Year BSE NSE Total
 2006 969860 1916227 2886087
 2007 1414723 3093928 4508705
 2008 1324051 3188510 4512562
 2009 1273964 3812031 5085996
 2010 1193205 3657521 4850726
 2011 693317 2762867 3456185

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

188. Stocks Responsible for
Sensex Crash (24/1/12)
 Company Points fall %chg FII Holding
 RIL -858 -0.59
 LNT -699 -2.76
 ICICI -691 -4.49
 SBI -445 -5.48
 Tata Steel -266 -3.13
 BHEL -253 -1.76
 Hindalco -228 -3.25

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

201. FII bet on Corporate
Governance (9/2/2012)
 FII Promoter Return in
2012
 IVRCL 37.1 11.2 96.1
 Ktak bank 20.4 0.0 56.8
 NCC 42.7 19.5 54.4
 IIFL 40.1 31.6 52.6
 IDFC 45.8 0.0 51.0
 Indiacement 27 25.8 45.5

202. FII bet on Corporate
Governance (9/2/2012)
 FII Promoter Return in
2012
 LIC Hou 40.1 36.5 248.5
 Hexaware 41.4 28.2 147.3
 Indusindbank 34.7 19.5 139.7
 Dr.Reddy 27.2 25.6 120.4
 ITC 16.3 0.0 94.3

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

231. Inequality increases Gini
Coefficient (22/3/2012)
 States 2004-05 2009-10
 All India 0.35 0.37
 Maharashtra 0.35 0.38
 Gujarat 0.30 0.31
 Jammu kashmir 0.24 0.31
 Punjab 0.32 0.36
 Assam 0.30 0.33
 Rajasthan 0.30 0.32

232. Inflation Index (22/3/12) Mint
 Particulars Weight age
 Food, beverages,tobacco 50 %
 Fuel & light 9%
 Housing 10%
 Clothing,bedding,footwear 5%
 Miscellaneous 26%

233. Real Estate Shaky (22/3/2012)
Mint
 Year Int.as % of Net Sales
 March 2010 6.50
 Sep 2010 8.78
 March 2011 8.01
 Sep 2011 10.62

234. Real Estate Shaky (22/3/2012)
Mint
 Year Int Coverage Ratio
 March 2010 4.85
 Sep 2010 3.87
 March 2011 3.45
 Sep 2011 2.80

235. Real Estate Shaky (22/3/2012)
Mint
 Year Debt Equity Ratio
 March 2010 5.31
 Sep 2010 8.53
 March 2011 9.73
 Sep 2011 10.10

236. Mahindra Satyam Deal
(22/2/2012)
 Strength of Combined Entity
 Valuation of Mahindra Satyam $ 1.8 billion
 $ 2.4 billion revenue
 75000 employees
 350 clients
 $ 3.1 billion market cap
 2 shares of Tech Mahindra shares to be
swapped for 17 shares of Mahindra Satyam

237. Mahindra Satyam Deal
(Rs.crore) (22/2/2012)
 Satyam Tech Mah
Combine
 Net sales 6105 5332 11437
 PBIT 751 777 1529
 PAT 444 670 1115
 Oper margin 12.3 14.6 13.4
 Reserves 4358 3682 8041

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 %

249. MF Return and their Standard
Deviations (9/4/2012)
 Funds 1year SD 3year SD 5year SD
 Small/Mid -0.65 21 31 28 7.93 32
 CNXmidcap-4.09 25 31 30 9.72 35
 Large cap -7.28 19 22 25 7.25 29
 BSE100 -9.23 21 22 27 6.83 31
 Sensex -10.5 20 21 26 5.89 30

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

259. FII holding in FMCG
(16/4/2012)
 Company Mar12 Mar11 % rise
 Colgate 20.20 18.72 1.48
 Dabur 18.42 17.22 1.20
 Godrej 25.31 19.48 5.83
 HUL 19.43 17.26 2.17
 ITC 17.40 14.04 3.36
 Nestle 11.03 10.55 0.48
 Tata Global 9.87 8.04 1.83
 GSKconsumer 15.50 12.08 3.42

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

265. FDI Flows (26/4/2012)
 Year Rs. Crores
 2005-06 24,584
 2006-07 56,390
 2007-08 98,642
 2008-09 1,42,829
 2009-10 1,23,120
 2010-11 88,520
 2011-12 1,33,181

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.

269. FCCB Woes for Indian
companies (2/5/2012)
 Company Issued Outstand Maturity
 Tata steel 875 382 5sep 12
 Tata motors 490 473 12July 12
 JP Associate 400 354 12sep 12
 JSW steel 325 274 28Jun 12
 Suzlon Energy 300 211 12Jun 12

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

326. Monsoon Vs India (2/7/2012)
 Monsoon Deviation % Inflation %
 2007-08 6% 4.8%
 2008-09 -2 % 8.0%
 2009-10 -22% 3.6%
 2010-11 2 % 8.6%
 2011-12 1 % 8.8%

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 %

347. MCX-SX, BSE and NSE fees
 MCX-SX NSE BSE
 Admission 5 lac 5 lakh 5000(Eq +FO)
 2.5 lac equity
 Deposit 20 lac 1.5cr 30 lac
 75lac(eq)
 Networth 30lac 1 cr 30lac(Eq)
 75 lac 25lac (FO)

348. Companies paying less than 24 %
effective tax rate (7/9/2012 BS)
 Company Effective Tax (%)
 Ranbaxy - 8.1
 Cairn India 4.4
 Reliance infra 9.7
 Sun Pharma 11.4
 Bank of Baroda 17.3
 HCL Tech 17.4
 Tata Motors 18.7
 Maruti 19.5

349. Companies paying less than 24 % effective
tax rate (7/9/2012 BS)
 Company Effective tax (%)
 RIL 20.6
 Hindalco 21.3
 Wipro 22.7
 HUL 23.0
 NTPC 23.6

350. Infosys Acquisitions
(11/9/2012)
 April 2006 Citigroup stake in Piegon for Rs. 518 crore
 Nov 2009 Infosys BPO buys Atlants based McCannish system
for Rs. 177 crores
 Dec 2011 Infosys BPO buys Australia based firm for Rs. 194
crore
 July 2007 Buys captive BPO centre of Royal Phillips Electronics
for Rs. 110 crore
 June 2011 Acquires software solutions of Gen-I for Rs.
18 crore
 September 2012 Acquires switzerland based
management consultancy firm lodestone holding for Rs.
1932 crore

351. Infosys deal costly (11/9/2012)
 Axon Lodestone
 Deal value ($mil) 658 349
 Deal value/revenue(times) 1.3 1.6
 No of consultants 2500 750
 Cost per consultant 1.5crore 2.6 cr

352. External Debt worrisome
(11/9/2012) ( $ billion)
 India external debt in last 5 years
 FY07 172
 FY08 222
 FY09 224
 FY10 260
 FY11 305
 FY12 345

353. India current account deficit
(11/9/2012)
 FY08 1.3 %
 FY09 2.3%
 FY10 2.8%
 FY11 2.7%
 FY12 4.2%

354. RBI raises ceiling for external commercial
borrowings (Moneycontrol 12/9/2012)
 As per the new regulation, a company can
borrow offshore funds to the tune of 75% of the
average foreign exchange earnings in the
immediate past three years or 50% of the
highest foreign exchange earnings realized in
any of those three years, whichever is higher.

Currently, a company is allowed to raise 50% of
the average annual export earnings during the
same time mentioned above.

355. Indian Industry capital investment lowest in
5 years (17/9/2012)
 Gross fixed assets grew at 12.3 % in
FY12 vs 34% and 26 % in two years to
FY08
 3 out of 8 companies in Nifty reported
lower growth
 RIL, Ultratech, Ambuja cement, BHEL,
Crompton greaves

356. PSU investments targets
(17/9/2012)
 Company Rs. Crore
 Coal India 4000 in 12-13
 NPTC 20,000
 BHEL 10,260 (next 5 year)
 ONGC 1,65,000 during 12 plan
 SAIL 45000 on projects
 Rs. 1.8 lakh crore cash pile of nine blue
chip PSU

357. RBI cuts CRR (18/9/2012)
 RBI cuts CRR rate by 25 basis point
 Now CRR is at 4.5 % which was earlier
4.75 %
 This would release Rs. 17000 crore into
the banking system

358. FII inflows strong (19/9/2012)
 In year 2012, FII have invested Rs.
61000 crores ($ 13.7 billion) so far
 DII have sold Rs. 32000 crores shares
highest since 2005
 FII invested Rs. 6135 crores after Govt
announced reforms

359. Swiss bourse woos Indian
firms (19/9/2012)
 Switzerland is home to $ 4000 billion
assets and world leader in cross border
private banking with market share of 30
%
 Under Swiss law, Swiss Exchange
enjoys self regulatory powers

360. RCOM to raise tariff
(21/9/2012)
 Reliance communication has decided to
raise tariff by 25 %
 The base price will be increased from
1.2 paise to 1.5 paise per second

361. Retail industry world wide
(21/9/2012)
 Global Retail industry by 2017 would be
$ 20 trillion
 In India share of organized retail 5 - 6 %
 Brazil share of organized retail 36 %
 China share of organized retail 20 %
 Indonesia share of organized retail 30 %

362. Companies with good ROCE
(21/9/2012)
 Company FY10 FY11 FY12
 Idea cellular 8.3 7.3 9.4
 Reliance cap 8.9 7.0 13.5
 JP power ven 8.4 4.4 7.2
 GMR infra 4.0 0.0 3.7
 Indian Hotels 3.1 0.0 5.8
 Rs. 15 lakh invested in these companies
becomes Rs. 45 lakh in 5 years

363. Reforms bring FII back
(24/9/2012)
 In 2012, FII have invested net Rs. 73,130 crore
in equities
 On average FII purchased daily stocks worth
Rs. 395 crores on each trading day in 2012
 On average mutual fund investors withdrew Rs.
64 crores every trading day in 2012
 More than 10 lakh equity folios of retail and HNI
were closed between sep 2011 and March 31
2012
 FII have invested Rs. 25977 crores in debt in
2012

364. Euro zone to have two funds
(24/9/2012)
 European Stability Mechanism (ESM)
 European Financial Stability Facility
(EFSF)
 Total bailout fund of $ 2 trillion to ensure
that even big economies are bailed out

365. Rajiv Gandhi Equity scheme
(24/9/2012
 Direct retail investment in equities eligible for the scheme
 Listed Mutual funds and ETF to be included
 Rs. 50,000 to be invested and 50 % of that to get as tax
deduction
 Only Income up to Rs. 10 lakh eligible
 BSE 100, CNX 100 and shares of PSU above Rs. 4000
crore of turnover eligible securities for investment
 One can book the profit after one year but principle
remain lock for 3 years

366. SIP stood test of time
(26/9/2012)
 SIPs have given on average 15 % since
2007
 Sensex has given 7.5 % since 2007
 Scheme 3 year 5 year
 SBI magnum emerging 18.52 21.33
 ICICI Pru Discovery 9.91 19.15
 Reliance Equity Oppor 12.85 19.07
 HDFC Mid cap Oppor 11.55 17.96

367. SIP stood test of time
(26/9/2012)
 Scheme 3 year 5 year
 IDFC Premier equity 9.51 16.67
 Canera Rebeco emer 10.06 15.75
 UTI opportunities 10.40 15.31
 ING dividend yield 6.85 15.25

368. Invesco buys 49% in Religare
AMC (28/9/2012)
 US based Invesco mutual fund has
picked up 49 % stake in Religare Mutual
fund for about Rs. 460 crore valuing the
company that has assets under
management of Rs 14600 crores at
about Rs. 950 crore.
 The deal is valued at 6.4 % of closing
AUM

369. SME hit by loan restructuring
(3/10/2012)
 In first half of 2012, CDR cell has
received 69 applications of SME wroth
Rs. 37,547 crores for restructuring
 Last year 35 cases worth Rs. 27,753
crore were reported to CDR

370. FII big buys in Sep (3/10/2012)
 FII buys record shares worth Rs. 19000
crores in September 2012
 The highest in one month in this
calender year

371. MF AUM distribution
(3/10/2012)
 MF assets from top 5 cities
 City % of AUM
 Mumbai 44.4
 Delhi 13.7
 Bangalore 5.43
 Kolkata 5.3
 Chennai 4.6
 MF can now charge unit holders additional 30
basis point over 2.25 if they raised 30 % of
inflows from place outside top 15 cities

372. MF Asset beyond top 15 cities
(3/10/2012)
 City % of AUM
 Gurgaon 0.52
 Bhubaneswar 0.47
 Cochin 0.42
 Ludhiana 0.41
 Patna 0.36
 Nagpur 0.35
 Indore 0.33
 Rajkot 0.31
 Nasik 0.29
 Coimbatore 0.26

373. Bank deposit reduce
(4/10/2012)
 Bank deposit grew by 13.7 % which was
less than RBI projection of 16 %
 Bank loans grew by 16.4 % as against
RBI projection of 17%

374. Companies paying dividend for
last 10 years (4/10/2012)
 Company Total dividend 10 yr % retrn
 paid in 10 yr %
 Hero Motor 19700 20.23
 Infosys 8265 16.19
 JSPL 2670 42.35
 HCL tech 4675 21.52
 ITC 3850 25.75
 ONGC 3040 11.38

375. Companies paying dividend for
last 10 years (4/10/2012)
 Company Total dividend 10 yr % retrn
 paid in 10 yr %
 Grasim 2200 18.10
 HDFC 2745 22.61
 Cummin India 3580 22.95
 MRF 2400 21.63
 Hindalco 1650 4.68
 Britannia 2230 15.53

376. IMF cuts India’s growth
(10/10/2012)
 IMF has cut india GDP growth forecast
to 4.9%
 In first half, our economy has grew 5.4 %

377. Rise in urea prices
(12/10/2012)
 Urea prices increased by Rs. 50
 Farmers now will pay Rs. 5360 per tonne
as compared to Rs.5310
 Rs. 70,000 spend on subsidy out of
which 33 % goes for urea
 Price rise happened after 2 years
 Last time it was in 2010

378. Trade Deficit at 11 month high
(12/10/2012)
 Trade deficit at 11 month high at $ 18
billion
 This increases current account deficit
 Currently Current Account Deficit is 4.3
% of GDP

379. Warren Buffet uses facebook
for sales (12/10/2012)
 Buffer insurance brokeage unit in india
would sell insuracne at 7.5 % discount
 It will use face book for selling their
product
 One year old car insurance for Honda
city Rs. 11917 with Tata AIG, Rs. 13000
with ICICI Lombard and with Berkshire
the cost comes to Rs. 11595

380. Big Brokers pay less Advance
tax (12/10/2012) (Rs. In crore)
 Company Current Last year % chg
 Citigroup 5 20 -75
 Morgan Stanley 21 47 -55
 Franklin Temple 5.8 9.9 -41
 JP Morgan 9.15 15 -39
 Sharekhan 7.5 5.5 36
 Kotak 10 7 43


381. Suzlon defaults (12/10/2012)
 Total debt on Suzlon books Rs. 14035
crore in March 2012 vs Rs. 12,241 in
March 2011
 Cash balance in march 2012 is only Rs.
262 crores
 Defaulted for $ 209 million payment to
bond holders

382. India housing market huge
scope (15/10/2012)
 Outstanding housing loans as proportion
to GDP is 80 % in USA
 It is 20 % in China
 India has this ratio of 8 %

383. FII rise stake in Nifty
companies (15/10/2012)
 In July – Sep Quarter, FII have pumped in Rs.
38,000 crore while DII sold Rs. 18800 crores
 Company Rise in FII stake (%)
 Cairn India 7.67
 Axis bank 5.52
 IDFC 2.12
 HDFC 1.98
 ICICI BANK 1.55
 FII have increased their stake in 23 Nifty
companies and 101 of BSE 500 companies

384. IPO norms under SEBI
scrutiny (16/10/2012)
 Companies cannot use more than 25 %of the proceeds
from IPO for “General Corporate Purpose”
 Issue related expense cannot be part of General
Corporate Purpose expense
 Merchant banker to declare itself as Marketing Lead
Manager
 Minimum application amount increased from Rs. 10,000
to Rs. 15,000
 Issuer has to allot minimum lot of shares to each retail
investor

385. Mumbai share in NSE 62 %
(25/10/2012)
 City Aug 12 FY2011-12
 Mumbai 62% 60.40%
 Ahmedabad 4.9% 6.10%
 Delhi 8.3% 8.4%
 Chennai 1.5% 1.4%
 Kolkata 7.6% 8.6%
 Rajkot 1.2% 1.4%

386. Mumbai share in NSE 62 %
(25/10/2012)
 City Aug 12 FY2011-12
 Mumbai 50.19% 37.40%
 Ahmedabad 8.0% 9.5%
 Delhi 4.43% 10.9%
 Chennai 0.53% 0.40%
 Koltaka 6.20% 5.0%
 Rajkot 4.16% 4.9%

387. Public sector banks risk at
laons (29/10/2012)
 Rs. 13000 crores stuck in Deccan
holding, KFA
 Rs. 7000 crores in KFA of 11 PSU banks
 Net NPA ratio of PSU banks in 2011-12
is 1.53 which was 1.09 in 2010-11
 Net NPA ratio of Private banks was 0.46
in 2011-12 and 0.56 in 2010-11

388. RBI cuts only CRR
(31/10/2012)
 RBI reduced CRR by 0.25 %
 Now CRR is 4.25 %
 It will release Rs. 17,500 crores in the
system
 Repo rate kept unchanged at 8 %

389. Core sector grows (1/11/2012)
 Core sector of 8 Industries grew 5.1 % in
September
 Reviving the hopes of recovery
 Coal, crude oil, natural gas, refinery
products, fertilizers, steel, cement and
electricity are core sector
 It accounts for 38 % weight age in IIP

390. India Inc. having problems of
stress (2/11/2012)
 66 % of working professionals feel lonely
 77% want to share their high and lows
with someone
 63% work harder than they want due to
competitive environment
 57% loosing touch with emotional side
due to over dependence on technology

391. India valuations (20/11/2012)
 Sensex has given 18 % return this year, the
most in BRIC
 FII have purchased $ 18.7 billion of indian
shares this year
 Country PE ratio
 Sensex 15
 Brazil 16
 Russia 5.6
 Shanghai 9.6
 MSCI Emerging index 11.2

392. Debt Equity Ratio (20/11/2012)
 Sector FY01 FY12
 Oil and gas 0.6 0.4
 Power 0.6 1.1
 Steel 2.4 1.0
 Telecom 0.2 1.4
 Automobile 0.6 0.5
 Non-ferrous metal 0.3 0.1
 Textile 0.9 1.0
 Infrastructure 0.8 2.0
 Cement 1.6 0.1
 Pharma 0.3 0.2
 Average debt equity ratio of Indian companies has increased from 0.36
to 0.79 from 2005 to 2012

393. IKEA gets a FIPB nod to set
up shop in India (21/11/2012)
 IKEA to invest Rs. 10,500 crores or 1.9 $
billion
 It has 336 stores in 44 countries

394. NIM of Indian Banks
(26/11/2011)
 Banks NIM % (2QFY 13)
 Andhra bank 3.1
 Bank of Baroda 2.7
 Indian bnak 3.1
 Punjab National bank 3.5
 SBI 3.3
 Union bnak 3.0
 J & K bank 3.9
 Axis bank 3.5
 Hdfc bank 4.2
 ICICI bank 3.0
 IDFC 4.1

395. FII investment (26/11/2012)
 FII have invested net $ 19 billion so far in
indian stock market
 This is second highest inflow by FIIs in
calender year.
 In 2010 FII had made net investment of
about $ 29 billion

396. BSE remains top
Bourse(26/11/2012)
 BSE has become world first stock
exchange in terms of listed companies
 It has 5174 listed companies
 This data is given by World Federation of
Exchange (WFE)

397. Direct invest plans in MF from
January 1 2013 (26/11/2012)
 Direct plans good for those who have expertise
to invest on own
 Plans to be cheaper by 50 – 75 basis points as
customer wont have to pay any fund distribution
charges
 Small investors may also shift to direct plans
which may not be good for new investors at
outset
 Distributor community may have to start looking
at alternate sources of business like Insurance
and real estate

398. SEBI on shareholding
(26/11/2012)
 Company Promoter Holding
 Wipro 78.3%
 Jet airways 80%
 DLF 78.6%
 Essar Shipping 83.7%
 Jaypee Infra 83.3%
 Larson Tubro 82.6%
 Indian Bank 80%
 State bank of mysore 92.3%

399. Greece Rescue plan works
(28/11/2012)
 Greece got 40 Billion Euro tranche which
has rescued it
 It has to reduced debt to 124 % of GDP
by 2020

400. Indian GDP in trouble
(28/11/2012)
 Indian GDP growth may dip to 4.5 % this year
as per OECD
 World growth estimated to only 2.9% as earlier
projection of 3.4%
 Projected rise in world trade
 Year %
 2012 2.8
 2013 4.7
 2014 6.8

401. I Bankers at job
risk(28/11/2012)
 Since mid 2011, nearly 15000 I bankers
have lost their jobs
 Nearly 25000 I banker jobs on the block
as slump bites
 Companies looking to shrink manpower
with decisions on fund raising and
takeover being put off

402. SEBI caps charge on Institutional
brokerage(28/11/2012)
 The regulator has fixed 12 basis point
(0.12%) on equity and 5 basis point
(0.05%) on derivatives trade
 It would come effect from 19th
November
 Large broking houses spend Rs 40 crore
on research while mid size broking
spends Rs. 40 to 50 lakhs on individual
company research
 Cap on brokerage has negative effect

403. Moody upgrades India
(28/11/2012)
 Moody reaffirmed India “Stable” outlook
which was liked by investors world over.
 Sensex went up by 305 point
 This shows strength of positive rating

404. Banks exposure to real estate
(29/11/2012)
 Bank Exposure (Rs. Crore)
 SBI 1,44,668
 ICICI 81,422
 Axis 52,730
 PNB 48,475
 IDBI Bank 36,785
 Bank of Baroda 27,157
 Standard Charter 26,082
 HDFC 25,020
 Bank of India 24,050

405. Loans slow down (3/12/2012)
 Personal loan grows at 23 % against 9 % last
year which is unhealthy
 Loan under credit cards have rise by 17 %
against 5 % last year
 Housing loans falls to 12% from 17 %
 Consumer durables lending also falls by 17 %
 Unsecured personal loans are the most risky
loans as bad debt probability is high

406. Banking Bill open doors for
future trading (11/12/2012)
 Banking bill allows banks to trade in
futures trading
 To raise voting rights of stakeholders in
private banks to 26 % from 10%
 To raise voting rights of shareholders in
nationalised banks from 1 % to 10%

407. FII pumps in huge money
(11/12/2012)
 FII have invested $ 21 billion pushing
Sensex 26 % up in this calendar year
 Highest among the BRIC nations

408. Bankers and ARC laud debt
recovery (11/12/2012)
 Enforcement of Security Interest and
Recovery of Debts Laws (Amendment)
Bill, 2011 was approved in parliament
 It seeks to convert any part of the debt
into shares of the defaulting company by
an asset reconstruction company (ARC)

409. Pledge shares (12/12/2012 %
 HDIL 96%
 INDIAN CEMENTS 67%
 UNITECH 79%
 JAIN IRRIGATION 48%
 PANTALOONS RETAILS 62%
 JSW STEEL 50%
 WELSPUN CORP 47%
 UNITED SPIRITS 98%
 SUZLON ENERGY 96%
 JP POWER 72%
 DISH TV 45%
 ZEE ENTERTAINMENT 31%
 JSW ENERGY 33%
 BHUSHAN STEEL 34%
 CROMPTON GREAVES 35%
 SINTEX INDUSTRIES 37%

410. IIP data shoots up but on low
base effect (13/12/2012)
 Month IIP Growth (%)
 Jan 2012 1 %
 Feb 4.3%
 April -1.3%
 May 2.5%
 June -2.0%
 July -0.1%
 August 2.3%
 Sep -0.7%
 October 8.2%

411. New reforms by govt
(14/12/2012)
 Clears urea investment policy (sector
should see investment of Rs. 35000
crores)
 National Investment Board to be called
as Cabinet Committee on Investment
headed by PM.
 Fast execution of projects more than Rs.
1000 crores

412. Domestic Institutions net
sellers (14/12/2012)
 DII have been highest sellers to the tune
of Rs. 51000 crores
 Highest selling in history of Indian capital
market in one year

413. SEBI announces steps to prevent flash
crash (14/12/2012)
 First check on value of order, any single
buy or sale order above Rs. 10 crore
would not be accepted in normal market
 Next check is in margin with exchange
 When broker position exceeds 90 % of
margin-collateral the broker limit is
freezed and only squaring allowed

414. LIC makes huge profit
(17/12/2012)
 Rs. 22000 crores invested by LIC into
the market in 2012
 Rs. 21000 crores of shares sold by LIC
in 2012
 Made a profit of Rs. 11000 crores this
year and had made profit of Rs. 9000
crore last year
 Global funds have invested Rs. 1.1 lakh
crore this year in stock market

415. India natural resources worth $
1 trillion (17/12/2012)
 Import bill total india has $ 450 billion
 Oil imports alone are $ 150 billion
 Natural resources india has potential of
$ 1 trillion

416. Companies Bill 2011 cleared
(19/12/2012)
 CSR:- spending 2% of net profit on CSR for companies
having profit of Rs. 5 crore or more in last 3 years
 Pay:- Directors pay should not exceed 5% of company
net profit
 Compensation:- if firs winds up operations, it must pay 2
years salary to its employees
 Auditor:- number of firms an auditor can serve capped at
20
 Ratification:- Appointment of auditors for five years to be
ratified annually
 SFIO:- More statutory powers given to SFIO to tackle
corproate fraud

417. Banking law (amendment Bills
2011) (19/12/2012)
 RBI gets more power can supersede bank
board
 Voting rights of shareholders in bank goes up
(pvt from 10 % to 26 % and public from 1 % to
10%)
 Banks not allowed to trade in commodity
futures
 RBI to be banking regulator
 CCI to regulate Mergers and Acquisition

418. SEBI slamps merchant
bankers (20/12/2012)
 From April 2008 to march 2012 out of
117 companies which came out with IPO
 42 trade above issue price
 72 are considerably below issue price

419. One person company gets nod
(20/12/2012)
 One person company gets nod in the
new companies bill
 Large number of sole proprietorship will
enter the corporate world
 In sole proprietorship the liability of the
member is unlimited while in company
form it is limited

420. SME power (26/12/2012)
 SME account for 45 % of country
industrial output
 Rs. 30,000 crores to manufacturing
output
 Rs. 12,000 crores to total exports
 SME manufacturers 8000 products
which is 9 % of india GDP
 In 2001 SME contribution to GDP was
only 6 % while it now at 22 % in 2012

421. Mid cap funds outperform
(26/12/2012)
 Fund one yr return%
 Principle emerging 51.52
 SBI magnum emerging 50.27
 Reliance regular saving 42.83
 Principal growth 42.62
 Principal tax saving 43.14
 Reliance ELSS 42.55
 Reliance top 200 36.16
 ICICI top 200 32.46

422. Job Generation falls 21 % in
2012(26/12/2012)
 Job generation fell 21 % across various sectors
in the whole economy
 Total 5.3 lakh jobs were created
 IT topped with 2.1 lakh jobs being created
 Academics and education 34,500 second
 Insurance 27,100
 Banking 24,500

423. Stocks where FII increased
their stake (27/12/2012)
 Company % chg FII holding %
 Bharti aritel 2.78 16.44
 ICICI bank 2.38 36.38
 LNT 2.19 15.4
 Jindal steel 2.03 22.17
 SBI 1.84 9.14
 Tata power 1.54 23.45
 ITC 1.06 18.32

424. US debt (27/12/2012)
 Total US debt $ 16 trillion
 US government owns 40 % through Fed
Reserve, Social Security trust fund
 Individuals, companies, pension fund,
mutual funds own 25 %
 Asian central banks, China, Japan and
oil exporting countries own 35 %

425. US Averted FISCAL CLIFF
(3/1/2013)
 Income above $4,00,000 per individual or $ 4,50,000 for
family to be taxed at 39.6% which is currently at 35%
 Above same income level the capital gain tax and
dividend tax would be at 20 % from 15 %
 Real estate tax at 40 % for estates of more than $ 10
million per couple which was earlier 35 % tax rate
 Increase pay roll tax to 6.2% from 4.2% on workers first
$1,13,700 of income
 Alternative minimum tax is linked to inflation index which
saves millions from being affected
 Prevents 27% cut in payments to medicare providers for
one year

426. SEBI plans more strick norms
for Buyback
 Listed company should compulsory buy
back 50 % of announced shares
 Companies must complete the process
within 3 months
 They will have to park 25 % of the
maximum amount in an escrow account

427. PMI rises to 6 month high
(3/1/2013)
 HSBC market india manufacturing index
PMI rose to 54.7 in december from 53.7
in November

428. Gold imports creating
imbalance (3/1/2013)
 $ 22.3 billion Indian current account
deficit in July- september
 Current Account deficit high at 4.2 % of
GDP
 $ 38.7 billion current account deficit in
first half of 2012

429. India Inc set to declare good
numbers (7/1/2013)
 Operating profits of Nifty companies to
rise 18 % in Q3
 Net profit likely to rise by 12 %
 Revenue or sales growth to be 9.3 %,
which is lowest in 13 quarters as still
consumer spending low

430. GAAR postponed till 2016
(15/1/2013)
 GAAR to come from 1st
April 2016
 P notes spared that is GAAR will not apply to Non-
resident investors of FIIs and PEs
 GAAR will apply only if main purpose of arragnment if to
avoid tax
 Taxpayer will have chance to argue case before officer
 Assessing officer will have to issue notice stating reasons
 Investment before 30th
August 2010 will not attract GAAR

431. India vs China (21/1/2013)
 China grew at 7.7% in 2012
 India grew at 5.3% in 2012
 China per capita income is $ 9146 is
more than twice of India
 Investment rate as % of GDP in China is
48% and that of India is 36%

432. European crisis still not over
(21/1/2013)
 European Stability Mechanism has Euro 500
billion
 Spain has debt of Euro 800 bilion (74% of GDP)
and Italy has debt of Euro 1.9 trillion (120% of
GDP)
 Banks have risk of capital flight from Europe to
other nations
 Europe banks have total deposits of Euro 8
trillion including euro 6 trillion in retail deposit

433. Govt raises Custom duty on
gold by 2 % (22/1/2013)
 Year Gold import ($ billion)
 2008-09 21.30
 2009-10 28.80
 2010-11 40.70
 2011-12 56.50
 2012-13 38.00
 Gold has become Rs. 350 per 10 g more costly
 In 2011 India imported 969 tonnes of gold and 604
tonnes till september 2012
 Rs. 11674 crores of gold is held by ETF mutual funds
 Gold ETF allowed to deposit physical gold with banks

434. RBI raises FII limit in bonds
(25/1/2013) BS
 Current account deficit 5.4 % of GDP
 FII can invest now $ 25 billion in G sec from
earlier $ 20 billion
 FII can invest now $ 50 billion in Corporate debt
instruments including sub limit of $ 25 billion for
infra bonds
 Long term investors include Sovereign wealth
funds, multilateral agencies, pension funds,
foreign central banks

435. Regulating IFA (24/1/2013)
 79000 odd Independent Financial Advisors are
there
 Rs. 7,00,000 crore mutual fund industry is there
 As on September 30, 2012 there are 86,240
AMFI registration number holders
 Out of these 79636 are individuals and 6601
are corporate
 Besides these there are 45,932 corporate
employees registered with AMFI as corporate
ARN holders

436. SEBI guidelines for Advisors
(24/1/2013)
 All advisors to be registered with SEBI within 6
months
 Registration valid for 5 years, renewable on
payment of fee
 Rs. 15000 registration fee for individuals, firms
and Rs. 1,05,000 for corporate bodies
 Insurance agent, AMFI registered MF
distributor, pension advisor, solicitors, CA,
ICWA, Acturaires and Fund managers NEED
NOT REGISTER

437. SEBI guidelines for Advisors
(24/1/2013)
 Minimum qualification of Post graduate degree
or diploma in finance or related fields
 Graduate with minimum 5 years of experience
in financial product advise
 Individual and partnership firm need networth of
Rs. 1 lakh and corporate bodies Rs. 25 lakh
 Disclosure like business plan, risk profiling,
infrastructure details, distribution service
offered, declaration that they will not receive
any other remuneration from third party
products

438. Repo Rate Cut (29/1/2013)
 t has cut repo rate—the rate at which it
lends to banks—by 25 basis points to
7.75 percent and the cash reserve ratio
—the portion of deposits that banks have
to compulsorily keep with the RBI—by
25 basis points to 4 percent.
 This will infuse Rs. 18000 crores into the
market

439. GST road clear (29/1/2013)
 The center will pay Rs. 34000 crores to
the states for their compensation
 GST will set to rollout from FY15

440. Tax cut help low & middle
income earners (4/2/2013)
 A person earning Rs. 3 lakh in 2003-04
was taxed at 14.1 % now the effective
tax rate is 3.4%
 Individual with earning of Rs. 8 lakh was
paying 32.5 % tax in 2003-04 now pays
29.1 %

441. China post record capital financial account deficit
(4/2/2013)
 Since 1998, for the first time China has
recorded $ 117 billion gap annual gap in
financial account deficit in 2012
 China forex reserves is $ 3.31 trillion
which is the highest in world..

442. MF industry waiting for budget
(4/2/2013)
 Total AUM Rs. 7.80 lakh crore
 60 lakh folios decline in last 3 years
 MF wants tax benefit in long term
investment through pension plans
 Changes in IRDA act to let insurance
companies invest through MF

443. FII net buyers in January 2013
(4/2/2013)
 FII have purchased net shares worth Rs.
22000 crores in January 2013
 This is the seventh consecutive month
where the FII have been net buyers

444. Companies aim to reduce debt
(5/2/2013)
 Combined debt of 10 large business houses
have jumped fivefold in five years to Rupees
5.39 trillion at end of march 2012.
 10 groups are Adani Enterprise, GMR,
GVK,Vedanta,Essar, Videocon, Anil
Ambani,Jaypee, JSW and Lanco
 These groups account for 20 %of all bank loans
in country
 Combined debt of BSE 100 companies was
Rupees 65 trillion at end of fiscal 2012

445. Companies aim to reduce debt
(5/2/2013)
 Reliance Anil Ambani had total debt of
Rs. 86,700 crore
 Air India has debt of Rs. 47226 crores

446. IMF estimates for 2012 GDP
(5/2/2013)
 Countries 2012-2013
 Emerging markets 5.10%
 Developing Asia 6.60%
 China 7.80%
 India 4.50%
 ASEAN-5 5.70%

447. Tata pours Dividends
(5/2/2013)
 Tata group firms including Tata motors,Tata
Global Beverages, Tata Chemicals, Tata Steel,
TCS have proposed a dividend of Rs. 7200
crores in 2012 compared to Rs. 1200 crores in
2011.
 Out of proposed Rs. 4200 crore has been paid
out.
 In 2011-12 the PAT of Jaguar Land Rover grew
45 % over previous fiscal to Rs. 12000 crores
which was much higher than company indian
business

448. Etihad to complete Jet Airways
deal (5/2/2013)
 Etihad Airways is likely to take 24%
stake in Jet Airways by paying Rs. 1800
crores.
 This would be first deal after sector was
opened for FDI for foreign airlines in
Indian airlines

449. Govt Stumped at Decade low
GDP (8/2/2013)
 Central Statistical Organization has
forecasted Indian GDP at 5 %
 This is lowest forecast in one decade
 Govt Borrowing limit Rs. 5.7 lakh crore
which is already reached 90%

450. NTPC offer for sale (8/2/2013)
 NTPC third largest sale Rs. 11430
Crores in equity marekt after Coal India
Rs. 15000 crores and Rel power Rs.
11500 crores
 IN NTPC Govt of Singapore, Reliance
MF, SBI and LIC have invested

451. Transfer Pricing targeted by
Tax authority (8/2/2013)
 Govt hopes to Raise Rs. 1 Lakh crore by
taxes through Cross Border deals. Last
year Directorate of Transfer Pricing
collected Rs. 66000 crores and this year
they eye more Rs. 44000 crore so total
Rs. 1 lakh crore. Elements like
“Marketing intangibles-expenditure
incurred for building brand equity in india
will be taken for tax

452. FII finds P notes attractive
(8/2/2013)
 FII registration were 1767 in Dec 2011
 FII registraion fell to 1755 in Dec 2012
 P-note value climbs 48% in Dec 2012 to
Rs. 1.02 lakh crore
 FII pay 1 % brokerage in P notes as
against 0.30 paise in direct route
 P notes avoid uncertainty over taxation
of their income.

453. FII finds P notes attractive
(8/2/2013)
 Month Equity+Debt Pnote Exclude FO (Rs Crore)
 April 12 86785
 May 12 66472
 June 12 69523
 July 12 68677
 Aug 12 68450
 Sep 12 82379
 Oct 12 95536
 Nov 12 94658
 Dec 12 101666

454. ECB and Bank of England
keep rates low (8/2/2013)
 European Central Bank has kept the
rates low at 0.75%
 Bank of England has kept the rate low at
0.5%

455. DLF coming out of wounds
(13/2/2013)
 DLF debt of Rs. 23,000 crores
 DLF has sold Aman resorts for Rs. 1650 crores,
NTC mill for Rs. 2727 crores and part of wind
power business for Rs. 282 crores
 DLF debt likely to come down to Rs. 18500
crores
 Promoters to sell 4.7% stake which would bring
down debt to Rs. 16500 crores

456. Tax-GDP Ratio (Dalal Street Feb 11-
24, 2013 issue page 58)
 Country Tax to GDP ratio %
 Mexico 13.7
 United Kingdom 24.8
 Korea 18.1
 India 11.48
 USA 17.5

457. Inflation cools to 3 year low
(15/2/2013)
 Month Inflation %
 August 2012 8.01
 Sep 2012 8.07
 Oct 2012 7.32
 Nov 2012 7.24
 Dec 2012 7.18
 Jan 2013 6.62
 WPI drops to 3 year low
 4.1% level of core inflation, a key measure of demand
(core inflation means rate of price increase in non-food
manufactured products – a measure of demand and
tracked closely by RBI)

458. Corporates in Mess
(15/2/2013)
 Suzlon incurred loss of Rs. 1154 crores
 Total debt in company Rs. 14000 crores
 Tata motors net profit falls by 52% to Rs.
1600 crores

459. FII buys huge in 2013
(22/2/2013)
 FII have purchased shares worth Rs.
43,854 crores ($ 8.14 billion)
 In 2012, FII have bought Rs.1,28,359
crores ($ 24 billion)

460. RBI banking license history
(22/2/2013)
 1993-94 RBI issued license to 10 private
banks
 2003-04 Two private banks YES bank
and Kotak Mahindra bank got license
 SUCCES stories HDFC bank, ICICI
bank, Axis bank, IndusInd bank, Kotak
and Yes bank

461. RBI banking license history
(22/2/2013)
 LAGGARDS IDBI bank and DCB bank
 Failures GTB merged with OBC,
Centurion bank with HDFC, Times bank
with HDFC Bank

462. Economic survey (28/2/2013)
 From 2007 the average return given by
various asset class
 Gold 27%
 Nifty 7.3%
 Saving deposit 8.2%
 Tax to GDP ratio had reached its peak at
11.9% of GDP in 2007-08

463. GDP growth in last 4 years
(28/2/2013)
 Year GDP %
 2009-10 8.6
 2010-11 9.3
 2011-12 6.2
 2012-13 5.0
 2013-14 projected 6.1 to 6.7

464. GMR Cash starved (5/3/2013)
 GMR company had sold its entire stake
of 70% in infra project in inland nation of
Singapore
 The objective is to reduce debt level
from the payment received
 GMR had debt of Rs. 37,000 crores as
on December 2012

465. Dividend Distribution Tax
(5/3/2013)
 Dividend Distribution tax on debt mutual
funds have been increased to 25 % from
12.5%

466. Govt Minority stake
sale(5/3/2013) (Rs. Crores)
 Disinvestment done 2012-13
 NBCC Rs. 124 crores
 Hindustan Copper Rs. 807 crore
 NMDC Rs. 5973 crore
 Oil India Rs. 3141 crore
 NTPC Rs.11457 crore
 Due in March 2013
 RCF Rs. 300 crores
 Nalco Rs. 1350 crores
 SAIL Rs. 3000 crores

467. Loan incentive to help housing
loans (7/3/2013)
 Rs 30 – 40 lakh category houses would benefit
most from budget announcement
 Out of 5,83,513 unsold apartments acorss
country 39% cost less than Rs. 35 lakhs
 In NCR 50 % of flats are in this range
 In mumbai 30 % are in this range
 The budget proposal to increase interest
deduction from 1.5 lakh to 2.5 lakh covers 95 %
of interest paid in one year

468. Loan incentive to help housing
loans (7/3/2013)
 In 2012, 42% of the homes sold were in
category of Rs. 30 to 40 lakhs with
average loan being taken Rs. 25 lakhs
 At current interest rates of 10.5% a year,
total EMI on 25 lakh loan is Rs. 3 lakh
 2.5 lakh interest allowed as deduction
which covers 95% of interest
 Earlier interest deduction was 57%

469. RBI very cautious on Infra
loans (8/3/2013)
 Rs. 6925 crores lending to Infra sector
 Rs. 3874 crores lending to power sector
 Rs. 7000 crores stuck in KFA
 Rs. 5000 cr debt to Deccan Chronicle
most of which had to be written off
 ICRA reports says current NPA 3.6% at
end of Sep 12 which would rise to 6.5%
to 7.5% by June 30, 2015

470. India Airport Details
(11/3/2013)
 How airports boost regional economy
 Every $ 100 of airport expenditure
produces $ 325 beefits
 100 additional jobs generate 610
economy wide jobs
 Encourages access to goods and
services
 % rise in tax revenues

471. India Airport Details
(11/3/2013)
 Country No of airports
 USA 15000
 Brazil 4105
 Russia 1218
 Indonesia 676
 South Africa 567
 China 497
 UK 462
 India 456 (33% functional)
 AAI planning to operationalise 100 more airports by 2020
 Out of 125 aiports of AAI 87 are loss making (Losses Rs. 950 crores

472. Govt to scrap or ease FDI
caps (11/3/2013)
 Sector FDI cap (%)
 Multibrand retail 51
 Defense 26
 Airlines 49
 Pvt Security agency 49
 Telecom 74
 Asset Reconstruction com 49
 Banking pvt sector 74
 Credit information com 49
 Commodity exchanges 49
 Infra cos in securities market 49
 Insurance 26

473. Wealth Destroyers (18/3/2013)
 Company From 2008 % fall in mkt cap
 DLF - 74%
 R COM - 91.2%
 Sterlite Industries -53.7%
 Suzlon Energy -94.7%
 GMR Infra -83.3%
 Tata Communication -70.0%
 Aban Offshore -93.2%
 GVK power & infra -84.6%

474. RBI cuts rate (19/3/2013)
 RBI has cut Repo Rate to 7.5%
 The Reverse Repo Rate is 6.5 %
 CRR is kept at 4 %

475. Banks urged to pump up
(1/4/2013)
 215 projects are stalled with investment
of Rs. 7 lakh crore
 Banks have lend Rs. 54000 crores
 Indian economy grew at 4.5% GDP
lowest in 15 quarters
 During march 2013 meet banks had
sanctioned Rs. 43000 crores for 126
projects which are estimated Rs. 3.55
lakh crore

476. Interest cost hurts (1/4/2013)
 Interest outgo as percentage of Profit
before interest and tax or PBIT has
increased to 29% in Dec 2012
 It was 14 % in Dec 2009. The ratio has
remained above 20% for last six
quarters.

477. CAD hurts Indian Economy
(1/4/2013)
 Indian economy Current Account Deficit
has touched 6.7% which is very high and
disturbing
 The estimated was 6.4%

478. Mutual fund investors decline
(8/4/2013)
 In FY 13, 34 lakhs individual investors
closed their folios
 The total number of folios have fallen
from 4.64 crores to 4.30 crores
 The number of investor folios for equity
schemes fell by 42.5 lakhs while debt
funds increased of 8 lakhs

479. RGESS fails to light up
(8/4/2013)
 RGESS collected Rs. 51.67 crores
 Total number of demat accounts 21800
 The number of demat accounts open for
RGESS is only 2.9% of total demat
accounts during the same period.

480. Corporate Governance issues
(8/4/2013)
 Companies Prices
 Educomp Rs. 757 to Rs. 66
 HDIL Rs. 540 to Rs. 48
 SKS Micro Rs. 1000 to Rs. 127
 BHEL Rs. 550 to Rs. 176
 Crompton Greaves Rs. 300 to Rs. 91
 KS oil Rs. 84 to Rs. 3
 Everon Rs. 655 to Rs. 60

481. Corporate Governance issues
(8/4/2013)
 HDIL – Promoters sold their shares to
buy land, 96% of promoter holding was
pledged
 KS Oil – Promoters evaded taxes, entire
promoter holding was pledged
 Everon – Promoter was arrested on
charges of paying bribe to income tax
officer to hide income of Rs. 100 crores

482. Bilcare declared defaulter
(9/4/2013)
 United Bank of India has claim of Rs. 51
crore on bilcare
 Stock was Rs. 1830 In January 2008
and not it is at Rs. 101
 Rakesh junjunwala has 8 % stake in the
company in december 2012

483. US and Japan pulling funds
(9/4/2013)
 Fund managers have pulled out $ 951 million from india
 From BRIC countries they have pulled out $ 777 million
 Country Funds ($ million) Jan-Mar 13
 USA +53925
 Japan +10166
 West Europe +3206
 China +1904
 Brazil - 1333
 Russia - 698
 India - 951
 Emerging Mkts - 654
 Africa - 47

484. FII invest in US and Japan
(16/4/2013)
 FII have invested $ 66 billion in the last 3
months into US and Japan markets

485. Inflation below 6 %
(16/4/2013)
 WPI has come to 5.96% in March as
compared to 6.84% in February
 Core inflation at 3.4% down from 3.7% in
February
 Food inflation at 8.73% down from
11.38% in February
 IIP at 0.6% in February as against
expectation of -1.2%

486. Trade Deficit falls (18/4/2013)
 India’s trade deficit reduced by 50 % to $
10 billion
 Biggest fall in 9 months
 Due to fall in gold prices

487. FM speaks data on CNBC
24/4/2013
 FII have invested $ 11.8 billion in 2013 till date
 Indian Saving rate 31 % in 2012
 It was 36% in previous year
 CAD to be near 5 % in FY 14
 Reviving investments key to growth
 GST to be surely done
 Fall in Crude and Gold welcome to reduce the CAD

488. India Funds and ETF pull out
money (24/4/2013)
 From January 2013 to March 2013 Global funds have
invested $ 66 billion in US and Japan, Western Europe
 They pulled out shares worth $ 1.2 billion in march
quarter
 US Corporate dividend yield is 2.56 % while its 10 year G
sec yield is 1.7%
 Japan corporate dividend yield is 1.56% while 10 year
bond yield is sub 1 %
 Foreign Fund managers wants action and not words

489. Etihad Jet Airway Deal
(25/4/2013)
 Jet Airways has sold a minority stake to fast-growing Abu Dhabi-based
carrier Etihad Airways for Rs 2,060 crore (roughly USD 379 million) after
months of negotiations.
 India's largest airline by market share said in a brief statement to the
stock exchange that its board approved the allotment to Etihad of 27.3
million shares at Rs 754.74 each on a preferential basis.
 The price represents a 31.7 percent premium to
Jet's closing share price on Tuesday . Indian markets were closed on
Wednesday.
 If completed, the investment would be the first by a foreign carrier into
an Indian airline since the country relaxed ownership rules in
September and allowed foreign carriers to buy up to 49 percent in local
carriers, which are battling stiff competition and high operating costs.

490. Etihad gives soft loan to jet
(2/5/2013)
 Etihad has given $ 300 million soft loan
to Jet at 3 % rate of interest
 Jet as of now pay 14 % annual interest
on loans
 Jet has debt of $ 2.1 billion as on
December 2012
 Jet annually pays Rs. 1000 crores as
interest amount
 Jet has total debt of Rs. 12000 crores

491. FII flows dips in April 2013
 Month FII Flows (Rs. Crores)
 January 22,244
 February 22,122
 March 11660
 April 4785

492. ECB cuts rate (3/5/2013)
 European Central Bank has cut its
benchmark rate at 0.50% from 0.75%
 FED has 0.25% interest rates

493. PMI India falls (3/5/2013)
 Purchase Managers Index has falled to
50.1 in March
 PMI above 50 and rising shows
economy expanding
 PMI below 50 shows economy
contracting

494. Bharti Airtel Still in losses
(3/5/2013)
 13th
Straight quarter and fall in profits
continue
 Total debt in Bharti Airtel Rs. 65000
crores which is hurting its balance sheet
 Profits came down by 50 %

495. FII increase stake while DII
reduce (3/5/2013)
 FII holding in sectors
 Sector FII holding
 Auto 9%
 BFSI 33%
 FMCG 9.2%
 IT services 14.5%
 Oil and Gas 10.1%
 Pharma 5.3%

496. DII holding (3/5/2013)
 Sector FII holding
 BFSI 22.8%
 Engineering 8.1%
 FMCG 18.2%
 IT services 9.4%
 Metals Mining 5.1%
 Oil and Gas 16.5%

497. Returns of asset classes
(6/5/2013) (1979-2012)
 Asset class Return %
 Inflation 8.1
 Fixed Deposit 8.8
 Postal schemes 8.7
 Gold 11.1
 Equity 17

498. Teledensity Falling (13/5/2013)
 Teledensity – number of telephone
connections for every hundred
individuals living within an area
 In june 2012 it was 79.6 and now in Feb
13 it is 72.9
 ARPU for GSM has come down to Rs.98
from Rs. 366 in March 2006
 ARPU for CDMA has come down to Rs.
80 from Rs. 256 in March 2006

499. Goodwill Hits (14/5/2013)
 2006 Tata steel acquired Corus for $ 13 billion
 2013 February consolidated loss of Tata Steel at Rs. 763 crores
 2009- Hindalco wrote off $ 1.5 billion goodwill for Novelis
 Dec 2012- Arcelor Mittal wrote of $ 4.5 billion in Europe
 March 2013 – Tokyo Steel took $ 1.3 billion impairment charge
 Indian Blues
 May 2010 – Vodafone Plc takes $ 3.4 billion impairment hit on
India operations
 Feb 2012 – Daiichi Sankyo takes Rs. 136 crores write off on
Ranbaxy

500. Trade deficit widens
(14/5/2013)
 Trade Deficit widens to $ 17.8 billion
 Last year it was $ 14 billion
 It increased to more buying of Gold as
the prices have crashed

501. Inflation falls to 40 month low
(14/5/2013)
 Inflation has come down to 4.89%
 It was at 5.86%
 It is at 40 month low which gives RBI
room to reduce rates
 Core inflation is at 2.8%
 Food inflation down 6.1%
 Repo rate still at 7.25% and reverse repo at 6.25% while
CRR at 4 %

502. Tata steel may cell Corus part
(21/5/2013)
 Tata Steel has been struggling to turn its European arm
profitable since the time of take over five years ago. The
company took an impairment hit of USD 1.6 billion on its FY13
balance-sheet on the back of weak environment in Europe.
 By unlocking value of these assets the company could raise
around Rs 4,000 crore
 The company had sold Teesside Cast Products (TCP) for around USD
467 million in 2011. Tata Steel has around 4.2 billion pounds of debt
and another 570 million pounds is due in FY14 and FY15 and hence
further disposals would help ease the burden on the wider group,
Moody’s noted.


503. Tata steel may cell Corus part
(21/5/2013)
 Between 2007 till date, Tata Steel has
seen 30 percent fall in steel demand in
Europe. In past few years the company
has taken several austerity measures to
cut down growing losses of European
operations.

504. Rel Infra scraps projects
(21/5/2013)
 Reliance Infrastructure has scrapped
projects worth Rs. 20,000 crores
 This is due to delay in Governmental
clearances

505. Govt Reduces FII withholding
tax (22/5/2013)
 In Government bonds and securities for
long term do not need PAN Card
 Investments between June 1 2013 to 31st
may 2015.
 Withholding tax reduced to 5 %
 QFI and FII will benefit from the same

506. Global Stimulus
continues(23/5/2013) Money control
 Bank of Japan is buying $ 75 billion of
assets per month
 US is buying $ 85 billion of assets per
month
 Japan's Nikkei witnessed its biggest fall
in two years when it closed 7.3 percent
lower on Thursday with 1100 points fall
and closed for trading
 China PMI at 49.6 at 7 months low

507. Larsen & Tubro in problem
(23/5/2013)
 Rs. 17000 crores worth of orders written
off
 Another Rs. 6000 crores of orders likely
to be slow
 Slow down in infrastructure projects,
high costs and rising interest burden are
the main reason
 Net profit fall 7 % to 1788 crores.

508. Real GDP (23/5/2013)
 Year Real GDP %
 2002-03 4.0
 2003-04 8.1
 2004-05 7.0
 2005-06 9.5
 2006-07 9.6
 2007-08 9.3
 2008-09 6.7
 2009-10 8.6
 2010-11 9.3
 2011-12 6.2
 2012-13 5.0

509. Fiscal deficit as % of GDP
(23/5/2012)
 Year fiscal deficit
 2007-08 2.5
 2008-09 6.0
 2009-10 6.5
 2010-11 4.8
 2011-12 5.7
 2012-13 (RE) 5.2
 2013-14 (BE) 4.8

510. Sticky loan rises (23/5/2013)
 Bank of India gross NPA rose 48% in
FY13 to Rs. 8765 crores over a year ago
 IDBI gross NPA has rised by 41% to Rs.
6449 crores

511. GDP reduces to ten year low
(31/5/2013) money control
 GDP Indian economy expanded by 4.8
percent in the quarter that ended in
March, in-line with consensus. The FY13
GDP has also come in line with
government estimates of 5 percent,
which is lowest in a decade.

512. HSBC PMI confirms slowdown
(4/6/2013)
 Headline PMI dropped 0.9 points to 50.1 in May with the
key worry being output trends (i.e. current indicators)
which fell 1.6 points to 48.6. Forward-looking indicators,
i.e. those for future production, saw mixed trends with
new orders declining (-1.8 points to 50.5) but new export
orders rising (+2.9 points to 54)
 A weak PMI, lower eight-core growth (2.3 percent in April
vs. the revised 3.2 percent in March 2013) and muted Q4
GDP growth (4.8 percent), point to a significantly bleaker
growth outlook.

513. FII sold highest shares
(20/6/2013)
 FII sold shares worth Rs. 2136 crores on
june 20, highest in two years.
 Fed said they are going to stop QE 3
 Earlier FII had sold May 13, 2011 ( Rs
3706.4 crore)
 Currently world has witnessed US QE3,
London LTRO (Long Term Refinance
Operations) and Japan Bond Buying
Programme

514. FII sales vs Rupee Level
 Date FII Sales Rupee/$
 20/6/2013 -2136 59.70
 29/3/2012 -1299 59.14
 9/8/2011 -1961 45.17
 5/8/2011 -1610 44.80
 25/8/2011 -1494 46.12

515. SEZ policy under scanner
(24/6/2013)
 Total SEZ approved so far 577
 170 operate across India and 389 still not notified
 Total jobs created as on March 31, 2013 is 10,74,904 jobs
 Exports from SEZ rose to 30 % to $ 88 billion in 2012-13 from $
68 billion last year
 Minimum Alternate Tax was charged at 20.96% on developers
and units
 Dividend Distribution tax at 17%

516. FII and QFI to be merged
(26/6/2013)
 Foreign Institutional Investors (FII) and
Qualified Foreign Investor (QFI) to be
merged into one entity called as Foreign
Portfolio Investor (FPI)

517. SEBI tightens buy back norms
(26/6/2013)
 New Old
 Minimum buyback 50 % 25%
 Minimum period 6 months 12 months
 Post buyback 1 yr no cap raise 6 mon
 If company fails to buy back 50 % then
company has to forfeit 2.5 % of total
amount earmarked

518. CAD Falls to low level
(28/6/2013)
 Year CAD
 Q1 2012 3.8
 Q2 2012 4.2
 Q3 2012 4.3
 Q4 2012 4.4
 Q1 2013 3.9
 Q2 2013 5.4
 Q3 2013 6.7
 Q4 2013 3.6

519. Portugal Crisis (4/7/2013)
 17 countries EURO zone
 Portugal facing problem over
implementing Austerity measures
 Portugal main PSI 20 index plunged
6.4% on Wednesday
 10 year bond yield to 7.74% indicating
lack of confidence in investors

520. Top 30 bad loans make for
half of NPA (4/7/2013)
 In foreign banks top 30 non performing loans
account for 84 % of gross NPA as on March
2013
 For PSU banks, top 30 NPA account for 39.7%
of gross NPA. Bank of India, Andhara Bank,
Punjab & Sind bank, Corporation bank have
more than 50 % of gross NPA
 In case of Private bank, top 30 banks have
34.6% of gross NPA and for old private banks it
66.4% of gross NPA

521. Service PMI falls (4/7/2013)
 HSBC Service PMI falls to 51.7 from
may reading of 53.6
 The falling in the reading shows that
service sector

522. Company with Debt Distress
(4/7/2013)
 Company Rs. Crores
 Jindal Steel 14372
 KFA 8030
 Suzlon 6416
 Electrosteel 5232
 Hindustan Construction 4574
 Bharti Shipyard 3862
 Leela Ventures 3643
 GTL infra 3190
 Tulip Telecom 2175
 Gammon India 2706

523. Rupee slide (10/7/2013)
 Rs 38,700 crores Daily average turnover
of the futures currreny market on NSE in
june (up 47%)
 Indian debt market FII sold $ 5.4 billion
in June and $ 1.1 billion in July
 Oil companies will buy dollars only from one
bank and not from multiple institutions
 Margin increased in currency futures on non bank players and
new positions
 Ban on banks for proprietary trading

524. Projects Stalled root cause
(10/7/2013)
 341 projects are stalled
 10.5 lakh crore is at stake
 This needs to be looked seriously
 No investment activity taking place

525. US Economy Recovering
(10/7/2013)
 US unemployment rate is 4 year low at
7.6%
 Economy to grow at 1.8% GDP as
compared to earlier estimate of 2.4%

526. US Proposal to reduce banks
lending power (11/7/2013)
 Federal Reserve, office of the
Comproller of the Currency and the
Federal Deposit Insurance Corp. are
planning to bring law to increase the
leverage ratio of banks to 5 % and for
FDIC to 6 % from current 3 %.
 This means banks should have more
capital to protect their asset side than
what they keep currently

527. US Proposal to reduce banks
lending power (11/7/2013)
 Banks Shortage/ Surplus
 J P Morgan - $15.6 billion
 Morgan stanley +$14.1 billion
 Citigroup -$ 13.2 billion
 Goldman sach - $ 4.9 billion
 Bank of America + $ 3.6 billion

528. WPI inflation (15/7/2013)
 WPI inflation at 4.86%
 Core inflation at 2 %
 Food inflation at 9.74% vs 8.25% per
month

529. RBI raises cost of borrowing
(16/7/2013)
 Repo Rate is at 7.25%
 Marginal Standing Bank Rate raised to
200 bps to 10.25%
 Rs 12000 crore bonds Central Bank will
buy on thrusday
 Rs. 75000 crores cap on bank borrowing
 This will raise the cost of borrowing for
the consumers

530. Walmart stores (16/7/2013)
 Country No of stores
 Mexico 2353
 Central America 642
 UK 565
 Brazil 558
 Japan 438
 China 393
 Canada 379
 Africa 377
 Chile 329
 Argentina 94

531. Gitanjali Gems under scan
(25/7/2013)
 Total debt in company Rs. 4300 crores
 Total sales of company Rs. 16000 crores
 Promoter Mehul Choksi Unique Client
Code has been disabled
 Stock has come down in circuit from Rs.
600 to Rs. 94
 Why Retail investor runs away from market ?

532. US has new way to calculate
GDP (25/7/2013)
 US GDP was first calculated in 1929
 Now US GDP calculation would have
Research & Development as Investment
and would be accounted for

533. LIC investments raise
eyebrows again (30/7/2013)
 Company CMP % fall from 52 wk H
 Zylog system 14 95.55
 Core Edu 23 93.13
 Gitanjali gems 80 87.55
 ABG shipyard 269 35.17
 Pipavav Defen 68 30.20
 Mandhana Ind 234 24.24

534. FII sell record stocks in June
and July (31/7/2013)
 FII have sold Rs. 17000 crores or $ 2.9
billion in June and july 2013
 Highest in last 5 year june and july
 RBI has reduced GDP forecast to 5.5%
from 5.7%

535. Global Fund managers sell on
india (31/7/2013)
 Main reasons
 Slowdown in economic growth
 Threat of rating downgrade
 Concerns over rising fiscal and CAD deficit
 Depreciating rupee
 Fading hopes of rate cuts
 Absence of big ticket reforms
 Uncertain political scenario

536. NSEL stops one day forward
contract (1/8/2013)
 NSEL has suspended all the trading in one day forward contract )
suspended trading in all one-day forward contracts
 The action taken by NSEL basically translates to almost all volumes or turnover of the
exchange coming to a standstill or near zero. E-series contracts do not have much volumes on
the exchange. It is hardly Rs 3-4 crore and the turnover of the exchange has anyways fallen
from roughly around Rs 800-900 crore a day to nearly Rs 300 crore because of the actions
taken by the Ministry of Consumer Affairs.

On July 23, NSEL had reduced delivery, payment and settlement period of all contracts traded
on the exchange to less than 11 days (T+10 or less), wherever settlement schedule was
extending beyond 11 days. NSEL had also decided to convert all the existing contract on trade
for trade basis, which means that every trade must result into delivery.

“The exchange had reduced cost of transaction in respect of all these contacts by 80 percent.
The cumulative cost of transaction, delivery and warehouse receipt transfer was earlier Rs 100
per one lakh of turnover, which has been brought down to Rs 20 per Rs 1 lakh of turnover,”
according to a release issued on July 23.

537. HIGH CAD
 Current Account Deficit (CAD) is USD 80
billion, between Foreign Institutional
Investor (FII), Foreign Direct Investment
(FDI) and External Commercial Borrowings
(ECB) it would not be a problem at all in
bridging that. 7 months have passed this
year and we have got USD 20 billion FII plus
FDI put together.

538. FDI retail norms eased (2/8/2013)
Existing norms
 30% of procurement value should
be from Indian small units with
upto $ 1 million investment in plant
and machinery
 Units outgrowing “small industry”
status ineligible for fulfillment of
mandatory local sourcing
 Retail outlets to be set up only in
cities with population of over 10
lakhs and cover 10 sq km around
urban agglomerations.
Cabinet approved change
 At least 30% of procurement value
should be from Indian small units
with upto $ 2 million investment in
plant and machinery
 “Small Industry” requirement only
at the time of first engagement.
Such industry will qualify for
sourcing even if it outgrows
investment of $ 2 million
 States free to decide on the city
for the location of front end sores
irrespective of population

539. PMI service index crashes
(6/8/2013)
 HSBC Service Business Activity has
fallen from 51.7 to 47.9 in July 2013
 This is the lowest reading since April
2009
 Clear sign of Economy slowdown
 Service Sector contributes 55% in GDP

540. BSE 100 COMPANIES DEBT
RISES (7/8/2013)
 BSE 100 companies (Excluding banks
and financials) total debt has increased
by 75% to Rs 14.5 lakh crore
 Operating profits up only by 25 %
 IF FMCG and IT which are cash rich
removed then numbers still worse

541. YTD returns Global markets
(7/8/2013)
 Brazil - 19.74%
 Russia - 19.05 %
 Sensex - 5.30%
 Nifty - 7.61%
 China -14.82%

542. PE Investors trapped
(12/8/2013)
 Company PE Year stock price
 Gokuldas Blackstone 07 -90%
 Punj lloyd warbug pincu 07 - 91%
 NCC Blackstone 07 -90%
 Allsec Carlyle 07 -90%
 Great offshore Carlyle 07 -95%

543. International Financial Mafia in
commodities trade (12/8/2013)
 Pay Rupees equal to $ 10,000 and trade upto $
2,00,000 or 20 times
 Bucket shops in Mumbadevi and Chira Bazar
 Rs. 1200 is total cost including brokerage and
CTT in one lot of gold in MCX while in Dabba it
is Rs. 100
 Margins in International Exchanges are 6 % to
10% as against 10 to 20 % in Indian exchanges

544. International Funds give
returns (12/8/2013) (1 year %)
 ICICI pru US Bluechip 37.42%
 Franklin US Opportunity 36.04%
 DSPBR US Flexible 33.42%
 JP Morgan ASEAN Equity 30.74%
 Motilal Most Nasdaq 27.87%
 Birla International Equity 26.4%
 JP Morgan Greater China 24.67%
 Kotak Global Emerging Mkt 20.66%
 DSPBR World Energy 15%
 DSPBR world Agriculture 13.37%
 Domestic Large & Multi cap have given 3.44% 0.02%

545. Mid cap and small cap crash
(13/8/2013)
 Sensex down by 2.5% in 2013
 Mid cap down by 23 % and small cap
down by 28%
 Globally DAX Mid cap up 33 % and
FTSE small cap p 35% and S&P 600
Small cap up 31%

546. IIP crashes (13/8/2013)
 IIP for June came to -2.2 %
 IIP for May revised downward to -2.8%
 CPI at 9.64% in July
 Car sales down for 7th
successive month

547. Gold Import duty rises
 Govt has raised the import duty for the
third time
 From 8 to 10 %
 This makes yellow metal costly by Rs.
600 per 10 grams

548. Inflation rises (14/8/2013)
 The WPI July inflation came to 5.79%
 WPI June was 4.86%
 Inflation again rising its head
 Food Articles Inflation At 11.91% Vs
9.74% (MoM)

549. Dollar vs Rupee
 In 1947 1 $ = 1 Rs.
 In 1947 10 gram gold = Rs. 88.62
 In 2013 1$ = Rs. 61
 In 2013 10 gram gold = Rs. 29000

550. 50% of BSE shares below
book value (19/8/2013)
 Company Mkt Price Bookvalue
 Indian oil 209 239
 BHEL 105 130
 RCOM 118 159
 Tata steel 235 582
 SAIL 40 103
 JSW Steel 487 802
 Sesa Goa 130 147
 Rel Infra 325 747
 Hindalco 93 175

551. Infra Projects worth 1.1 lakh
crore cleared (19/8/2013)
 Power Projects Rs. 83772
 4 road projects Rs. 4359
 3 Railway projects Rs. 7103
 BPCL Petro Distilary Rs. 1419
 OCL Iron & Steel Rs. 1109
 Delhi Airport Rs. 12000
 Total projects Rs. 1,09,000 crore

552. Companies that gain from
rupee fall (21/8/2013)
 Company Rs. Crore gain wgt in Sensex
 TCS 5775 6
 Infosys 3677 8.17
 Wipro 2748 1.83
 Bajaj auto 1123 1.69
 Dr. Reddy 872 1.38
 BHEL 869 0.54
 Cipla 574 1.32

553. NPA in PSU Rise (22/8/2013)
 PSU Mar 12 Mar 13
 Gross NPA 3.17 3.78
 Priority Sector NPA 4.93 5.42
 NPA other priority 5.22 4.66
 Gross NPA Retail 2.72 2.37
 NPA Corporates 2.65 3.44

554. Tax collection in different slabs
(22/8/2013)
 2011 – 2012 Tax (Crore) % of total
 0-5 lakhs 15010 10.4
 5-10 lakhs 21976 14.8
 10-20 lakhs 17858 12.1
 Over 20 lakhs 93229 63.0

555. Food Security Bill (27/8/2013)
 Food Security Bill to cover 67 % of the
population
 The total subsidy burden would be Rs.
1,24,000 crore

556. CAD a challenge (27/8/2013)
 Last fiscal CAD was $ 88 billion
 This fiscal target is to reduce it to $ 70
billion
 Gold imports have come down by $ 10-
12 billion

557. PE funds trapped (27/8/2013) in $ million
and year 2007 of investments
 Company Amt invt Current val % chg
 Suzlon 25 0.26 -98
 ICSA india 52 0.66 -98
 K S oil 104 2.86 -97
 Shiv Vani 25 0.55 -97
 Great offshore 41 1.30 -96
 Jai Balaji ind 69 2.18 -96
 Nagarjun con 150 7.91 -94

558. Key stats about Indian corporate sector
(28/8/2013) Delhi IIFT
 Parameters 2007 2013
 Net Debt 0.33 060
 EBIDTA has gone up 14% but interest cost gone up by
30%
 Interest coverage ratio was 10.5x in 2007 which is
reduced to 4.6x in 2013
 Shareholders Equity has reduced to 18% but net debt
has gone up by 31 %
 FII hold 48% of free float market cap

559. Indian Economy mess (money
control 4/8/2013)
 In 2007-08 the total deficit was Rs.1,26,000 crore currently it is
Rs. 5,42,000 crore deficit
 Indian total forex reserve $250 billion (excluding gold reserves)
and debt $390 billion (31st
march 2013)
 60% of the loan to be repaid next year
 India would not be able to give back more than 2 $ for every 3 $
owed
 The drastic fall in the CAD for January-March period to 3.6
percent from 6.7 percent in the previous quarter is a signal not
of a correcting CAD, but a slowing economy

560. Indian Economy mess (money
control 4/8/2013)
 The second negative is the obverse side of selling grains at Re 1, Rs 2
and Rs 3 a kg to the poor. The poor will buy the cheap grain and sell a
part of it in the open market which will then be used for higher-protein
food (milk, veggies, meat, eggs, etc). Recent food inflation has been
caused not by rice or wheat, but protein items. The FSB will thus directly
make food inflation worse. Nothing slows down an economy more than
inflation.
 The only antidote to it is very strong reforms in energy pricing, FDI,
labour and land markets.
 Large chunks of the public sector need to be sold off-and not just
divested piecemeal. Or else we should cut welfare spending drastically.

561. Banks risk of losing Rs. 30,000
crore (5/9/2013)
 Company Amout (Rs. Crore)
 KS oil 2564
 KFA 7000
 Deccan Chronicle 4000
 PSL 3200
 MFI(Micro Finance) 7200
 Xenitis Infotech 400
 The above companies restructuring have failed
 As on march 2013, loans worth Rs. 2,29,013 crore of 401 companies
restructured

562. Pension Bill passed in Lok
Sabha (5/9/2013)
 The total corpus is Rs. 35000 crores
 8 fund managers will manage the fund
 3 funds options with varying degree of
investments in equity, bonds
 26 state governments have joined the
scheme
 All central government employees who
joined after 1st
jan 2004 will be in this
pension scheme

563. FII make come back
(11/9/2013)
 From June to August FII sold Rs. 23000
crores shares
 In september FII so far have bought Rs.
5000 crore of shares

564. BRICS strength (11/9/2013)
 World GDP BRICS Data
 BRICS 21% India 13%
 US 22% China 55.1%
 EU 23% Brazil 16.2%
 Japan 8% Russia 13.1%
 Others 26% South Africa 2.6%
 Debt to GDP ratio of Eurozone 92.2 % and USA 103 %
($16.7 trillion debt in USA)

565. $ 100 Billion fund for BRICS
(11/9/2013)
 $ 100 billion fund has been proposed to
be created by BRICS nation
 India $ 18 billion
 Brazil $ 18 billion
 Russia $ 18 billion
 China $ 41 billion
 South Africa $ 5 billion

566. RBI eases banks borrowings
(11/9/2013) money control
 The Reserve Bank of India (RBI) said on Tuesday banks can
raise funds overseas above 50 percent of their Tier I capital with
a minimum maturity of three years and swap these borrowings
with the central bank at a concessional rate for one to three
years. "The swaps shall be available at a concessional rate of a
hundred basis points below the market rate for all fresh
borrowing with a minimum tenor of one year and a maximum
tenor of three years, irrespective of whether such borrowings
are in excess of 50 per cent of their unimpaired Tier I capital or
not," the RBI said.

567. Rising Bad loans (18/9/2013)
 NPA of PSU banks have become 3.84%
in March 2013 as compared to 2.32% in
March 2011
 26 PSU banks are there
 Top 30 NPAs make Rs. 61,123 crore or
39% of their gross NPA accounts.

568. FII back in September
(18/9/2013)
 FII have invested Rs. 6394 crores in first
15 days of September
 Rupee appreciated 8 %
 FII were net sellers of Rs. 23000 crores
from June to August

569. FII POWER (18/9/2013)
 $ 200 Billion of Indian Stocks are owned
by FII
 $ 37 billion FII have invested in Indian
stock market since 2012

570. WPI inflation high at 6 months
(18/9/2013)
 WPI inflation is at 6.1%
 Six months high

571. BRIC Nations Forex Reserves
(20/9/2013)
 Brazil $ 371 billion
 Russia $ 509 billion
 India $ 274 billion
 China $ 3.3 trillion

572. India’s FOREX reserve
 Year Forex Reserves ($ billion)
 FY08 309.7
 FY09 252
 FY10 279.1
 FY11 304.8
 FY12 294.4
 FY13 292
 FY14 274.8

573. RBI raises Repo Rate
(20/9/2013)
 RBI increased repo rate by 25 bps to 7.5
%
 The RBI did provide some relief for
banks by lowering the marginal standing
facility (MSF, an RBI window for short
term loans) to 9.5 percent from 10.25
percent.
 The CRR was kept at 4%


574. GAAR to be applicable from
April 2016 (27/9/2013)
 GAAR to be applicable from 1st
April
2016
 For those transactions of FII which has
tax benefit exceeding Rs. 3 crore

575. CAD widens (1/10/2013)
 CAD widens to 4.9% in June Quarter
 It was 3.6% in last in Q4
 While CAD had touched 6.7% in Q3
 Core sector growth at 7 month high
 It is at 3.7%
 Core sector includes Coal, Crude oil, natural
gas, Fertilizer, steel, cement, electricity,
Refinery products

576. RBI reduces MSF (8/10/2013)
 RBI reduces MSF (Marginal Standing
Facility) by 50 bps
 From 9.5 % to 9%
 Lending to banks by RBI for 7and 14
days as against current practice of 1 day
 This will induce liquidity in the system

577. BRIC problems (8/10/2013)
 Emerging Markets Central Banks (except China) have
seen outflows worth $ 80 billion around 2 % of reserves
 Last 4 months, Indonesia has lost around 14 % of central
bank reserves
 Turkey has lost 13 %
 India RBI has lost 6 % of its reserves
 India, Brazil, South Africa, Turkey have large current
account deficit.
 India has total fiscal and current account deficit of 10%
 Emerging Economies need $ 1.5 trillion every year in
external funding to meet financial needs including
maturity debt.

578. BRICS Problems (8/10/2013)
 Many investments have been misdirected or
deliberately wasteful
 Trophy projects like 2008 Beijing Olympics
costing $ 40 billion
 Russia’s $ 51 billion 2014 Winter Olympics
 Brazil 2014 football world cup and 2016
Olympics
 These events absorbed scarce resources at the
expense of essential infrastructure.

579. Trade Deficit Reduces
(10/10/2013)
 Trade Deficit ($ billion)
 April 2013 17.78
 May 2013 20.1
 June 2013 12.2
 July 2013 12.2
 August 2013 10.9
 September 2013 6.8
 Exports rose 11.2% in Sep and Imports reduced by 18%
 Trade Deficit for Q2 is at $ 29.8 billion as against $ 50
billion for Q1

580. India External Debt to GDP
ratio (14/10/2013)
 India External Debt to GDP is 22%
 India has reserves of $ 280 billion which
is 15 % of GDP
 In other words, country can pay three
fourth of its debt from its forex reserves
 India holding in US treasuries is $ 59.1
billion

581. Inflation at 7 month high
(15/10/2013)
 Inflation was 6.10% in August
 Inflation now at 7 month high at 6.46%
 The CPI inflation has also gone up to
9.84% from 9.52%
 Prices of onion up 323%
 Vegetables prices up 89%
 Rice prices up 18.76%
 Egg, meat prices up 13.37%

582. India gold imports
(15/10/2013)
 In 2012, we bought 863 tonnes of gold, accounting for 28
per cent of global purchases.
 Over the years, we have accumulated 20,000-25,000
tonnes of gold, with a staggering market value of over $1
trillion.
 India's current account deficit was roughly about $80
billion in 2012-13. Since gold imports alone amounted to
about $60 billion

583. Retail Participation at 10 year
low (21/10/2013)
 Daily cash market average volume of
retail investors is down to Rs. 4615 crore
in 2013 which is lowest since 2003
 In 2009 retail participation used to be Rs.
13709 crores.
 From 2009 to 2013, the retail
participation has come down from 65 %
to 34%

584. FII back in India
 In 16 trading sessions in October, FII
have invested Rs. 13000 crores
 From January 2013, FII net investment
has been Rs. 85000 crore in Indian
markets

585. Infra Projects delayed
(29/10/2013)
 Rs 15 lakh crore worth of industrial projects stalled
 136 projects worth Rs 7.14 lakh crore stalled in power
sector
 Delay largely due to lack of clearances
 Gross NPA of banks have reached Rs. 1,36,970 crore
(17.43% of total) from Rs. 12,190 crore (4.66% of total )
at end of March 2009 Intensifying pressure on banks

586. RBI raises Repo Rate
(30/10/2013)
 Repo rate increased by 25 bps which
takes it to 7.75 %
 Reverse repo rate also increased by 25
bps
 Marginal Standing Facility (MSF)
reduced by 25 bps to 8.75 % (earlier 9
%)

587. India slips to 134 rank in ease
of doing business (30/10/2013)
 Ease of doing business
 Country 2014 2013
 Singapore 1 1
 Hong Kong, China 2 2
 New Zealand 3 3
 USA 4 4
 Denmark 5 5
 Malaysia 6 8
 Korea 7 6
 Georgia 8 9
 Norway 9 7
 UK 10 11
 India 134 131

588. Equity rising but investors
missing (11/11/2013)
 Sensex at 20,827 but with inflation adjusted it is real
value is 13000
 If companies whose prices have crashed much are
removed then value of Sensex is only 11500
 NSE Mid cap is 22% down and small cap is 58 % down.
 According to SEBI 500 brokers have shut business since
1st
April.
 40,000 jobs lost and 12855 sub brokers shut their shop.

589. Trade Data improves
(12/11/2013)
 Exports up 13.5%
 Imports down 14.5%
 October Trade deficit at $ 10.55 billion
which was last year at $ 20.2 billion
 CAD should be less than $ 60 billion
 Exports target of $ 325 billion could be
achieved

590. Fizz has gone out of India
(12/11/2013)
 India has gone from “Must invest” to
“Must deal with” says pepsi CEO Nooyi
 Must Invest means it is a destination and
the country is growing
 Must deal means there are infrastructure
issues, taxation policy is not clear. So
people say “Do I have to deal with India”
 PEPSI to invest Rs. 33000 crores till
2020 into Indian markets.

591. FATCA to affect fund flows
(12/11/2013)
 Foreign investors have invested over Rs 92,250
crore or USD 16.7 billion so far this year. This
robust flow will be adversely impacted come
January 1 when nearly 40% of the foreign flows
will be governed by FATCA - Foreign Account
Tax compliance Act. To put it simply, FATCA
was enacted by the US government to track
down offshore investments and earnings of any
US citizen.

592. Inflation rises again
(13/11/2013)
 CPI inflation is at 10.09 % from 9.84 %
 Food inflation is at 12%
 September IIP is at 2 % (positive
surprise)

593. FII flows of 2013 (13/11/2013)
 Month Net flows of FII (Rs.crore)
 Jan 22,245
 Feb 22,122
 March 11,660
 April 5,145
 May 20,678
 June -10,530
 July - 5,909
 August - 6,200
 September 13,158
 October 18,013
 November 1,843

594. SBI Profit falls 35 %
(14/11/2013)
 Rs. 6000 crore debt that would be
restructured in next 2 quarters
 Rs. 9300 crore debt mainly from Infra,
power, Iron and steel sectors
 SBI total restructured loan book stood at
Rs. 52,437 crores.

595. Markets gets Jitters as FII unwind long
positions(24/11/2013)
 Indian Markets have lost nearly 1000
points over past 7 trading sessions
 FII have liquidated long positions worth
Rs 4000 crore in index futures in
November series

596. Tata opts out of bank license
(28/11/2013)
 Tata group has withdrawn its application
from bank license
 Mahindra and Mahindra also had
withdrawn its bank application
 Out of 26 applicants now 24 are in race

597. Economy bounce backs
(3/12/2013)
 Core Sector growth crashes -0.6% in
October as compared to 8% rise in
September
 GDP at 4.8 % in Q2 in line with
Expectation and Q1 it was 4.6%
 CAD to 1.2 % of GDP

598. Inflation jumps (12/12/2013)
 CPI inflation at 11.24 %
 IIP data at -1.8%
 This dampens the chances of reduction
in interest rates

599. WPI jumps (16/12/2013)
 WPI rises to 7.52%
 14 month high
 The wholesale price index (WPI) for the month of November
shot up to a 14-month high of 7.52 percent from 7 percent in the
previous month, led by higher primary, food and fuel prices.
The street was largely expecting the November WPI to stay at 7
percent. The September WPI number has also been revised
upwards at 7.05 percent from the provision figure of 6.46
percent.
 The biggest culprit remains food inflation which accelerated to
19.93 percent in November from 18.19 percent in October. The
primary articles inflation for the month rose to 15.92% versus
14.68% in October.

600. Slow Growth in Bank Deposits
(17/12/2013)
 Central Bank Comfort zone for deposit growth
is 14 %
 Actual growth of deposits is 12.8%
 Annual growth of deposits is 16.1% but this due
to FCNR(Foreign currency non resident) flows
of $ 34 billion
 Loan growth back at 16% on Nov 29 from 18 %
in August
 Companies going to money market to raise
short term funds

601. WPI rises sharply (17/12/2013)
 WPI at 14 month high
 June 5.16
 July 5.85
 Aug 6.99
 Sep 7.05
 Oct 7.00
 Nov 7.52
 Food inflation at 19.93 % in November
 This means RBI may increase Repo rate by 25
bps to 8 %

602. Fed Tapper effect
(17/12/2013)
 Since May 2013, FII have withdrawn $
13 billion from debt market in India with
US announcing Tapering
 FII holding in Indian rupee debt is $ 24.6
billion which was $ 37 billion
 RBI during this time has gathered $ 34
billion through special deposit scheme
for NRI

603. RBI plays it cool (18/12/2013)
 Repo rate unchanged at 7.75 percent
 CRR at 4 percent of net demand and time liability (NDTL)
 Reverse Repo rate under the liquidity adjustment facility (LAF)
remained unchanged at 6.75 percent
 Marginal Standing Facility (MSF) rate and the Bank Rate stood
at 8.75 percent.

604. Mutual funds selling spree
(26/12/2013) moneycontrol
 Mutual funds had a tough 2013. Volatile equity markets
forced domestic funds to focus more on debt
market, eyeing higher interest rates.
 Domestic mutual funds offloaded shares in November
selling equities worth Rs 482 crore in the month to take
total outflows from equities to Rs 13,721 crore in 2013 so
far.
 They have invested Rs 4.3 lakh crore in the debt market
in the first 11 months of the year.

605. India Inc Debt trap
(26/12/2013)
 As of september 2013, there are 3700 listed companies
 Total borrowing Rs. 24,00,000 crores
 That is quarter of India GDP as per Credit Suisse
 Of this, Rs. 8,00,000 crore is with companies whose Interest
burden is more than operating profit
 Future group reduced its debt to Rs. 3500 crore from Rs.
10,000 crore by exiting financial services and part of retail
business
 Bharti Airtel raised $ 1.26 billion by selling 5 % stake to Quatar
Foundation to reduce its debt of $ 9.69 billion

606. Hedge funds performed in derivatives
(26/12/2013) Business line
 Hedge funds using equity derivatives strategies delivered 18.2%
return from January to November 2013
 Return of Sensex has been 6.6%
 2011 Hedge funds gave 28.3%
 2012 Hedge funds gave 6%
 2013 Hedge funds gave 18.2%
 Other strategies of India focused hedge funds gave -7.1 %
negative return
 Average Global Hedge funds return have given annualized 9.78
% with annualized std deviation of 5.20% since December 1999
to November 2013
 In 2013, Global Hedge funds delivered average return of 7.1%
while MSCI world index gave 21% return

607. Core sector slows (1/1/2014)
 Core sector growth came to 1.7% in
November as against 5.8% in Nov 2012
 Fiscal Deficit has reached 94% of
Budget Estimate
 This creates hurdle to achieve Fiscal
deficit of 4.8% as targeted by
Government

608. New land act comes into force
(1/1/2014)
 The first day of 2014 saw the 119 year old Land Acquisition law being
repealed. The new land acquisition act enacted by the parliament last
year comes into force today.
 The new law mandates that land will have to be bought at four times the
market rate in rural areas and at double the market rate in urban areas.
 Thirteen legislations including the National Highways Authority of India
Act and the coal Mines Nationalisation Act will have to be amended to
reflect the new compensation rates.

609. Angel Investors invest in start
ups (2/1/2014)
 162 deals closed worth Rs. 3700 crores
 45 % of all investments made went to
start ups in 2013 as compared to 41% in
2012 and 36% in 2011

610. FII REACH HEADROOM
(3/1/2014)
 In last 4 years FII have invested Rs.
3,71,000 crores
 More than total investment that come in
last 9 years starting 2001.
 In last 4 years, barring 2011 average net
investmetn buying by FII has been $ 20
billion

611. Brokers shut shop (8/1/2014)
 600 brokers have shut their business
 18000 people became job less
 BSE cash market turnover reduced by
70% which was Rs 11 lakh crore in 2011
is not Rs 3 lakh crore in 2013 december
 NSE cash market turnover reduced by
48% from Rs. 35 lakh crore to Rs. 18
lakh crore.

612. FII net sellers (8/1/2014)
 The first six trading sessions of 2014
saw FII selling stocks worth Rs. 567
crores
 The political uncertainty is creating
issue.
 Foreign investors also sold cash shares
worth Rs 567 crore on Tuesday, totalling
sales of Rs 839 crore since Thursday,
regulatory and exchange data shows.

613. Retail inflation declines
(14/1/2014)
 Consumer Price Inflation fell to 9.87% in
December from 11.16% in November.
 Vegetable inflation eased to 38.76% in
December from 61.6% in November.
 Interest rates on PF deposit raised to
8.75%

614. Commercial Vehicles space in disaster (15/1/2014)
Money control
 Despite staring at a debt level of over Rs 5,000 crore Ashok Leyland is
being forced to continue big discounts on its heavy duty trucks. Just last
week the company unveiled a new state-of-the-art heavy duty truck
'Captain' -- with plans of launching 18 vehicles on the same platform --
in an effort to spruce up demand but it has ruled out any cut back on
discounting just yet which has hit an all-time high of Rs 180,000 per
vehicle for the company.
 After being snubbed by the government on its plea for an incentive
package to revive the CV industry, there seems to be no light at the end
of the tunnel. M&M says discounts have reached a level of upto Rs
400,000 per vehicle.
 Tata Motors too saw its margins hit a rock bottom of 0.9 percent in the
last quarter as losses reached Rs 803 crore on a standalone basis.
Average cash discounts for the company have touched Rs 200,000 per
heavy duty truck

615. Coal india pays its highest
dividend to Govt (15/1/2014)
 Coal India has paid Rs.16,485 crores as
dividend to government
 Its highest ever dividend paid by coal
india in all these years
 Govt target is to raise Rs. 40,000 crore
through disinvestment
 So far it has been able to raise Rs. 3000
crore only

616. PMI rises highest in one year
(4/3/2014)
 HSBC Purchasing Manager Index for
manufacturing sector came to 52.5 in
February since February 2013
 The survey was based on 500 large
manufacturing firms.

617. Sensex PE ratio sector wise
(4/3/2014)
 Sector 2008 2014
 Finance 21.2 11.2
 IT 23.4 22.0
 FMCG 29.0 33.7
 OIL GAS 21.7 9.2
 Telecom 42.7 174.3
 Power 35.4 11.7
 Metals 14.7 17.0
 Capital goods 50.3 16.4
 Pharma 20.9 30.0
 Automobile 18.2 13.3

618. Weightage in Sensex
(4/3/2014)
 Finance 25.5%
 IT 18%
 FMCG 14.6%
 Oil Gas 13.9%
 Automobile 9.6%
 Pharma 5.8%
 Capital goods 4.5%
 Metals 3.5%
 Power 2.4%
 Telecom 2.3%

619. UPA vs NDA numbers
(6/3/2014)
 Economy grew 50 % faster under UPA than in NDA
 UPA fought with once in lifetime depression for 6 years out of its 10 year
while NDA has comfortable economic environment
 In UPA II the annual GDP growth rate was 7.1 % while world average
GDP was 1.5 %
 Under UPA, Debt to GDP ratio down to 67 % while China debt to GDP
is 200 %
 In 2004, Inida debt to GDP ratio was 85 % up from 73 % in 1999
 Under NDA the Gross Fixed Capital Formation, a measure of
investment was around 25 % while under UPA it was 33 % under the
current macro economic environment. RUSSIA GFCG is 20 %
 Under NDA, India spent 50 % of its budgetary receipts for interest
payment only, unsustainable ratio while under UPA it has come down to
30 %. The remaining 20 % is used for subsidies and programme like
NGERA.

620. UPA vs NDA numbers
(6/3/2014)
 Both UPA and NDA had poor show for employment figures
 On inflation UPA has problem while NDA managed well. Could
be as commodity prices were low when NDA was there.
 Since 2002 the prices of commodities have went up by 6 to 7
times.
 Since 1980 world economies have grown because of huge debt
capital used. China grew because of huge debt capital
 Now neither western countries nor china can stretch their
balance sheet.

621. CAD at 8 years low (6/3/2014)
 April – December CAD is at 2.3 % of GDP
 Last year it was 6.5 %
 Last year same peirod it was 5.2 %
 For the full year CAD could be in range of $ 35
to 40 billion
 Import duty on gold raised to 10 % from 2 %
which helped reduced import
 In oct - December quarter CAD is $ 4.2 billion
as compared to $ 31 billion

622. SEBI wants MF to grow
multifold (6/3/2014) Mint
 AUM is currently at Rs. 8,00,000 crores
 In 5 years target is to reach Rs. 20,00,000 crores
 Currently top 15 cities account for 87% of AUM
 SEBI proposes to have mutual fund linked retirement plan
 In USA same concept called as 401K plan
 SEBI estimates if 10 % of 36 million tax payers invest Rs.
50,000 then also annually Rs. 18000 crores would come into
mutual funds
 Employee Provident Fund Organization (EPFO) has total
corpus of Rs. 5.46 trillion
 SEBI has proposed to Government that 15 % of this should be
allowed to invest into equity or equity oriented funds.

623. Market at all time high
(6/3/2014)
 BSE Sensex has touched all time high of
21513
 FII have poured in $ 1 billion in last 15
trading sessions
 In 2014 January and February, FII net
investment in debt is Rs. 30,000 crores
and in equities it is Rs. 3900 crores

624. ECB and Bank of England leaves rate unchanged
(7/3/2014) Moneycontrol
 The European Central Bank (ECB) left
its benchmark rate unchanged at record
low of 0.25 percent
 Earlier in the day, the Bank of England
(BoE) also left interest rates at a record
low of 0.5 percent and its gilt purchase
target unchanged at £375 billion (USD
617 billion).

625. WPI inflation falls low
(18/3/2014)
 WPI inflation came to 9 month low at
4.7%
 SBI paid advance tax of Rs. 1456 crores
for the March quarter

626. FOMC MEET US (20/3/2014)
 US FED CUTS BOND BUYING TO $ 55
BILLION FROM $ 65 MILLION
 GDP GROWTH PROJECT AT 2.3%
 Unemployment likely to fall from 7.5 % to
6.7%
 US Current Account deficit at 14 year
low at $ 81 billion

627. SUUTI to sell 9 % in Axis Bank
(21/3/2014)
 Specified Undertaking of Unit Trust of
India (SUUTI) to sell 9 % in Axis Bank
 It will help Govt to raise Rs. 5500 crores
 The total proceeds of Govt from share
sale will go to Rs. 21000 crores which is
more than earlier estimate of Rs. 19000
crores.

628. SEZ scheme a non-started
(21/3/2014)
 389 SEZ have been notified
 Only 185 functional means have only one export unit
functional
 SEZ have to pay 18.5 % Minimum Alternate Tax
 SEZ gets 100 % tax exemption for first 5 years
 50 % tax exempt for next 5 years
 50 % of ploughing back of profit in next 5 years.

629. FII Pour money into india
(26/3/2014) ($ million)
 Country FII March YTD
 India 2172 2579
 Indonesia 1121 1978
 Japan -7061 -19499
 Philipines 268 233
 S.Korea -1789 -3459
 Taiwan 1337 1780
 Brazil -262 319

630. FII Pour money into india
(26/3/2014) ($ million)
 FII have invested close to $ 2.5 billion
into Indian markets over past one month
 FII withdrew $ 2 billion from China and $
1billion from korea
 Invested $ 0.5 billion in Brazil

631. RBI KEEPS RATE
UNCHANGED (1/4/2014)
 Repo Rate at 8 %
 Reverse Repo Rate at 7 %
 CRR at 4 %
 SLR at 23%
 RBI has kept rates unchanged.

632. INDIAN MACRO IMPROVING
(31/3/2014)
 Fiscal Deficit at 4.6%
 Plan Expenditure at Rs. 4.75 lakh crore
 CAD at $ 35 billion
 Exports at $ 326 billion
 GDP seen at 4.9%
 April to February WPI at 5.9%
 Forex Reserves at $ 300 billion

633. FII money into Debt markets
(4/4/2014)
 From January to March 2014 quarter FII
have invested Rs. 35000 crores into
indian debt market
 The biggest such quarterly inflow ever
accroding to SEBI

634. FII Debt Market Flows
(4/4/2014) (Quarterly flows)
 Quarter ending Rs. crore
 Dec 2011 22555
 March 2012 16874
 June 12 5875
 Sep 12 13935
 Dec 12 9607
 March 13 14923
 June 13 -24326
 Sep 13 -27000
 Dec 13 -12563
 March 14 35531

635. WTO see Global Trade to
raise (15/4/2014)
 WTO see global trade at 4.7 % in 2014
 Last two years global trade has been
2.2%
 But still below average of 5.3 % for last
two decades

636. WTO see Global Trade to
raise (15/4/2014)
 Countries Exports Imports
 Developed Nation 3.6 3.4
 North America 4.6 3.9
 Europe 3.3 3.2
 South & central
America 4.4 4.1
Asia 6.9 6.4

637. FII Big buyers (15/4/2014)
 FII have purchased shares worth Rs.
30,000 croes since February 1st
 The Sensex have risen by 11 %

638. WPI inflation rises to
(16/4/2014)
 March WPI inflation at 5.7%
 In February it was 4.68 % at 9 month low
 IIP data has also come -1.9 % which
shows contraction in industry
 Capital goods a vital indicator at -17.4 %
vs -4 %

639. Auto Slump Claims 2 lakh jobs
(17/4/2014)
 About 2 lakh jobs have been lost due to production cuts
in auto industry
 The auto industry employs 19 million direct and indirect
workers
 This is below the target of 25 million workers by 2016
under 10 year Auto Mission plan of the government
 Past 25 months there is negative sales streak for heavy
trucks and buses
 In last one decade there is deepest decline in car sales

640. FII flows continue (29/4/2014)
 The net investments by FIIs into Indian equity
markets since the beginning of 2014 have
crossed USD 5 billion over Rs 30,000 crore),
while the same for debt markets also stands
near USD 5 billion (about Rs 29,000 crore)--
taking the total to close to Rs 60,000 crore.
 There were over 1,700 registered FIIs in the
country, along with close to 6,400 sub-
accounts.

641. Commodity Exchanges new
norms (6/5/2014)
 According to the new guidelines, individuals can’t hold more than 5 percent in a
commodity exchange, unlike the earlier norms where they held around 24
percent. Only an already existing commodity exchange, a depository, banking
company, an insurance company and a public financial institution is allowed to
hold around 5-15 percent in a commodity exchange.
 Even foreign investors are not allowed to hold more than 5 percent. Through this,
the regulator is clearly ensuring that the concept of anchor investor doesn’t exist
from now onwards. This will also have an impact on the bidding process since,
now many players like Reliance Capital , Tata Capital may not be able to hold
more than 5 percent as an individual entity.
 Sources indicate that Kotak may have an upper hand, since if it applies through
Kotak ace, commodity exchange, it can hold upto 15 percent in the exchange and
it will be interesting to see who all will not be in the race.
 The new guidelines are set to expedite the MCX stake sale process. Since the
norms also spell out that if a person is not fit and proper and has a pending
divestment, then his voting rights are suppose to extinguish.

642. China real estate market slows
down (7/5/2014) moneycontrol
 According to a survey by China Real Estate Index System (CREIS), 45
of the 100 cities experienced month-on-month property price declines in
April, up from 37 cities in March. Meanwhile, property investment in
China has also lost steam as bank funding for developers tightens.
Property investment accounted for about 12 percent of China`s gross
domestic product (GDP) in the first quarter, down from 15 percent in
2013, according to Reuters.

643. Inflation rises again
(12/5/2014)
 CPI inflation at 8.59 % vs 8.31%
 IIP at -0.5 % vs -1.9%
 Capital goods at -12.5% vs -17.4 %
 Manufacturing sector at -1.7%
 Food inflation 9.66%
 Rural inflation 9.25 % vs 8.89%

644. FII pour Rs. 1 lakh crore
(19/5/2014) money control
 Foreign investors have pumped in over Rs one lakh crore
in the Indian securities market since Narendra Modi was
announced as the prime ministerial candidate by Bhartiya
Janta Party (BJP) in September 2013.
 As per latest data compiled by capital markets regulator
Sebi, the net investments by FIIs into Indian equity
markets stood at Rs 88,772 crore since the
announcement. The same for debt markets was at Rs
13,399 crore -- taking the total to Rs 1,02,171 crore.


645. FII pour Rs. 1 lakh crore
(19/5/2014) money control
 FIIs, the main driver of the equity market, have helped
pushed up the benchmark BSE Sensex by over 22 per
cent since September 13.
 In 2014 alone, FIIs have infused a net amount of over Rs
74,000 crore in the domestic market, which included
more than Rs 41,000 crore in equities and nearly Rs
33,000 crore in the debt.
 Currently, there are 1,700 registered FIIs in the country,
while the number of sub-accounts stood at 6,408.

646. GDP stagnant (30/5/2014)
 GDP growth at 4.6%
 Annual GDP growth at 4.5%
 Core sector 8 industries growth at 4.2%
vs 2.7% last year

647. RBI CUTS SLR (3/6/2014)
 RBI keeps Repo rate at 8 %
 Reverse Rate at 7 %
 MSF at 9%
 CRR at 4 %
 SLR (statutory Liquidity Ratio) reduced
by 50 bps from 23% to 22.50 %
 The cut in SLR releases Rs. 40,000
crores into the system

648. RBI Increases overseas
investment limit
 Overseas investment limit increased to
US $ 1,25,000 from earlier $ 75000
 Last year the limit was reduced from $
US 2,00,000 to US $ 75000
 Indian residents and non residents
except pakistani and bangladeshi can
take upto Rs. 25000 outside india

649. Nifty Companies at low
valuation (11/6/2014)
 Company Current PE 10 year avg
 Cairn India 6.3 13.8
 NMDC 9.6 15.0
 Tata Steel 8.3 10.8
 IDFC 9.9 15.2
 HDFC Bank 17.3 20.8
 ICICI Bank 14.2 16.9

650. Inflation and IIP falls
(12/6/2014)
 IIP data has come to 3.4 % as compared
to -0.5 %
 Manufacturing accounts for 75 % in IIP
where as electricity and mining account
for 25 %
 Core sector data had also come 4.2 %
as compared to 2.7%
 Inflation has come to 8.28% as
compared to 8.59 %

651. WPI inflation rises (16/6/2014)
 WPI inflation at 6.1% as compared to
5.3% last month
 Food articles index rose to 2.3 percent
on a month-on-month (MoM) basis as
food articles inflation saw an uptick at
9.50 percent versus 8.64 percent in the
previous month.


652. Govt Announces measures to control food
inflation (18/6/2014)
 Govt tells state governments to crack down on hoarders
and black marketers of food articles
 Allow farmers to directly sell fruit and vegetables to any
customer instead of being forced to go to specified
markets and mandis, where middlemen thrive.
 Onions to be exported at $ 300 per tonne not below that
which would ensure that less exports take place
 States have been advised to delist fruits and vegetables
from APMC Act
 If Delhi and Vashi market; the two biggest fruits and
vegetable markets in Delhi and Mumbai, if you can tackle
these two, half of India's fruits and vegetable can be
streamlined.


653. Govt Announces measures to control food
inflation (18/6/2014)
 This is because the commissions of the commission
agent of the wholesalers and even at the retail level
range from 30-50 percent, and that is where the farmer
gets a lower price, consumer has to pay a much higher
price. We have to compress this value change to make
them efficient and that required the change in law and
that was the APMC Act.
 Excess Rice and Wheat to be released from the Godown
of FCI (Food Corporation of India)

654. Fin Ministry plans to divest 7
PSU (19/6/2014)
 PSU Govt Stake %
 Coal India 89.65
 Sail 80.00
 MMTC 90.00
 NMDC 80.00
 NHPC 85.96
 Nalco 81.06
 Nevili Lignite 90.00
 Government can get Rs. 22,000 crore from 10 % stake
sale in Coal India
 Disinvestment target kept at Rs. 36000 crores

655. Core Sector Data slips
(1/7/2014)
 India's core industry growth for May slowed to 2.3 percent
versus 4.2 percent month-on-month (MoM) and 5.9 percent
year-on-year (YoY). Core sector is 38 percent of IIP.
 The government’s May coal output grew 5.5 percent versus 3.3
percent MoM,
 while crude oil output declined 0.3 percent against 0.1 percent
decline MoM.
 May electricity output grew 6.3 percent against 11.2 percent
(MoM).
 Steel output in May saw a month-on-month decline at 2 percent
versus 3.1 percent growth in April.

656. Core sector growth (1/7/2014)
 Month Core sector %
 January 1.6
 February 4.5
 March 2.5
 April 4.2
 May 2.3

657. Fiscal deficit to be higher
(1/7/2014)
 Fiscal deficit was targeted by Chidambaram at
4.1 % (assuming revenue would rise 19 %)
 But actually revenue has gone up by 3.1% only
 Fiscal deficit is Rs. 2.4 lakh crore which is
45.6% of budget estimate. This was last year
33 %.
 The fiscal deficit in 2013-14 was 4.6% as
compared to 4.9 % earlier

658. IIP Rises to 19th
month high
(14/7/2014)
 The Index of Industrial Production (IIP) for the month of May came in at
4.7 percent versus 3.4 percent month-on-month.
 The factory output in May is at a 19-month high – highest since October
2012.
 Electricity sector growth came in at 6.3 percent against 11.9 percent
MoM. Manufacturing sector growth too jumped to 4.8 percent versus 2.6
percent in April. Mining sector growth too improved at 2.7 percent
against 1.2 percent MoM.
 The jump in May IIP data is slightly surprising considering India’s core
industry growth for May slowed to 2.3 percent versus 4.2 percent
month-on-month (MoM) and 5.9 percent year-on-year (YoY) and core
sector is 38 percent in the Index of Industrial Production.

659. WPI inflation cools (14/7/2014)
 Wholesale Price Index inflation in June declined to 5.43 percent
from 6.01 percent in May.
 Food articles inflation slipped to 8.14 percent from 9.50 percent
 primary articles inflation dropped to 6.84 percent versus 8.58
percent but manufactured products inflation increased
marginally to 3.61 percent versus 3.55 percent month-on-
month.
 April WPI inflation was revised upwards at 5.55 percent as
against 5.20 percent provisional.

660. CPI cools down (14/7/2014)
 CPI cools down to 7.31% as against
8.28%
 This may give room for RBI to reduce
interest rates

661. Retail investors flock back to
equity funds (16/7/2014)
 Rs. 7309 crore came in equity mutual funds in June 2014
highest since Jan 2008
 Rs. 9761 crore total flows into equity mutual funds in May
and June
 Rs. 12072 crore Gross sales of equity schemes in june
 Since may 2014 20 new brokers have registered with
BSE and 36 fresh application for membership is in
process

662. Core sector growth jumps
(31/7/2014)
 June Core sector growth at 7.3% vs
1.2% year on year
 Its at 9 month high
 April to june core sector growth at 4.6%
vs 3.7% year on year

663. India July HSBC PMI
(1/8/2014)
 India July HSBC manufacgturing PMI at
53 vs 51.5 month on month
 China July official PMI rises to 51.7 from
51 which is 27 month high indicating
growth coming back
 China PMI rises to 51.7 which is 18
month high

664. CAD Still concern (4/8/2014)
money control
 CAD, which is the excess of foreign exchange outflows over
inflows, touched a historic high of USD 88 billion or 4.7 per cent
of GDP in 2012-13, mainly due to rising imports of gold and
petroleum products.
 In order to check rising CAD, the government had raised import
duties on the yellow metal to 10 per cent, while RBI imposed
curbs on import of gold and also laid down various pre-
conditions for inward shipments of the precious metal. It came
down to USD 32.4 billion or 1.7 per cent of GDP in 2013-14.

665. US unemployment rises
(4/8/2014)
 US unemployment rises to 6.2 %
 For the sixth consecutive month US
created more than 2,00,000 jobs

666. China service PMI falls
(5/8/2014)
 China's Jul HSBC svcs PMI falls to
lowest in almost 9 years The services
purchasing managers' index(PMI)
compiled by HSBC/Markit fell to 50.0 in
July from a 15-month high of 53.1 in
June, the lowest reading since
November 2005 when the data collection
began.

667. India July Services PMI falls
(5/8/2014)
 India July Service PMI has fallen from
54.4 to 52.2 on a month on month basis.
 This shows slight slow down in the
services sector also.
667

668. RBI CUTS SLR (5/8/2014)
 RBI cuts SLR 50 points to 22 % from
22.5%
 Repo rate unchanged at 8 %
 CRR unchanged at 4 %
 Reverse repo rate at 7 %

669. US Economy Motors on,
borroiwng at 7 year low
 US Treasury borrowing is at 7year low since 2007 due to
stronger economy boost tax revenue
 Treasury has paid down $ 64 billion in marketable debt in Arpil
June quarter.
 Cash balance was $ 130 billion in June
 Budget deficit has been falling since 2009 and in 2014 it is
projected to be 2.8% of GDP which was 9.8% in 2009 when
Barak Obama took charge
 The US Economy has expanded 4 % in April to June quarter
2014.

670. SEBI oks REITs (11/8/2014)
 Paving the way for Rs 1 lakh crore fund inflows from
foreign and domestic investors, Sebi on Sunday cleared
new norms for setting up and listing of Real Estate and
Infrastructure Investment Trusts.
 The new guidelines, which herald a new investment
avenue in India on the lines of one in developed markets
like the US, UK, Japan, Hong Kong and Singapore,
would allow trading in units of REITs and InvITs like any
other security on stock exchanges.
 Minimum investment amount for REITs has been fixed at Rs 2
lakh and at Rs 10 lakh for InvITs for now, given the complex
nature and potential risks associated with them.

671. SEBI oks REITs (11/8/2014)
 The REITs alone can attract USD 8-10 billion worth funds.
Talking to reporters after the board meeting, Sebi Chairman U K
Sinha said that these trusts would help in the progress of the
real estate and infrastructure sectors.
 The government feels that these new investment avenues
would reduce the pressure on the banking system while also
making available fresh equity in form of long-term finance from
foreign and domestic sources including the NRIs

672. PPF vs Equity (25/8/2014)
 PPF can beat equities over 20 year period
 Since 1994 Sensex was 4588 and now it is at
26420 in 2014
 Annualised return of Sensex is 9.15 % while
PPF has given 10.46%
 Rs. 10,000 invested in 1994 in Sensex gives
today Rs. 57520 and in in PPF gives Rs. 73,124
 Since august 2007 Senesx annualised return is
8.10%

673. Indian GDP rises (29/8/2014)
 Indian GDP at 5.7% vs 4.6%
 Highest in 10 quarters
 Economy coming back on track
 Rise in GDP due to Government
spending on social sector at 9.9% vs
3.3%
 Govt Spending reduces as fiscal year
ends due to target of meeting fiscal
deficit

674. FIIs pump huge money
(8/9/2014)
 FII pumped Rs. 3400 crores in Equities
in first week of september
 FII pumped Rs. 5000 crores in Debt
market
 Totally they have invested Rs. 9000
crores in Indian markets in first week of
september

675. Alibaba worlds biggest IPO
(9/9/2014)
 Chinese e-commerce behemoth on Friday said it expects
to price its IPO between USD 60 and USD 66 per share to
raise as much as USD 24.3 billion - making it the largest
US public offering in history.
 At USD 66 a piece, Alibaba would be valued at USD 163
billion - below analysts` expectations for a valuation of
more than USD 200 billion.
 Facebook, the world`s largest technology IPO to date,
raised USD 16.01 billion in its May 2012 debut in New
York. It had a market capitalization of USD 81.25 billion,
according to Associated Press.

676. Coal block decision delay
(9/9/2014)
 he Supreme Court has reserved its order in the coal block allocation
case and has also refrained from giving any specific date to pass the
order. The apex court heard the final arguments today to determine the
fate of 218 coal blocks awarded since 1993 which it has termed as
"illegal" and "unconstitutional.“
 The government at the hearing on September 1, left it to the apex court
to decide the fate of these coal blocks, held as illegal by it, while stating
that about 40 blocks are operational and another six are ready to
produce 50 million tonnes coal in the current year.

677. NRI may find it easier to invest
in india (10/9/2014)
 1991 through SBI India Development
Bond had raised $ 1.6 billion
 1998 Resurgent Bonds which college $
4.2 billion after Nuclear test put
sanctions by USA
 In 2001, India Millennium Deposits
raised $ 5.5 billion

678. GMR group debt (12/9/2014)
 GMR group debt has increased to Rs.
37000 crores
 The stock trades at 25 Rs.
 High debt kills the EPS growth

679. LIC king of personal loans
(12/9/2014)
 LIC has given secured personal loans
against LIC policies of Rs. 60,000 crore
 LIC gives loans at 10 %
 Bank loans against FD are Rs. 54,200
crore
 Bank loans against shares Rs. 3200
crore

680. Difficult to do business in india
(12/9/2014)
 Vodafone India chief says difficult to do
business in india
 In china telco are reglated and three
players have invested $ 50 billion in
network last year
 India has spend only 10% of that in
createion of networks
 Vodafone still faces Rs. 20,000 crore in
tax problems.

681. Inflation stubborn and IIP
slows (12/9/2014)
 CPI Inflation has been stubborn at 7.8%
from 7.96% last month
 IIP slowed down from 3.4 % to 0.5 %
which shows still recovery is not
sustaining

682. August WPI at 5 year low
 Inflation data based on wholesale price index (WPI) for August
hit a five year low at 3.74 percent vs 5.19 percent seen in July
 Food inflation in August hit a lowest level since January 2012. It
eased to 5.15 percent versus 8.43 percent on a month-on-
month (MoM) basis.
 Further, August fuel inflation also hit a five-year low with the fuel
and power group inflation declining to 4.54 percent versus 7.40
percent (MoM).

683. NPA rising (15/9/2014)
 According to ICRA report, there has
been rise in NPA loans to 38%
 It was Rs. 1.65 trillion which has now
become Rs. 2.27 trillion

684.  Trade deficit narrows to $10.83bn in
Aug; exports slow Trade deficit during
the period (April-August) stood at USD
56.15 billion down from USD 70.6 billion
during the same period last year.

685. FII flows continues (16/9/2014)
 Foreign Institutional Investors (FII) flows
during calendar year 2013 invested
Rs.1,13,000 croes while DII were net
sellers to the tune of Rs. 74,000 crores.
In 2014 till date FII have invested Rs.
86,000 crores while DII sold shares
worth Rs. 34,000 crores. Taking the net
investment to Rs. 51,500 crores.

686. Corporate raising funds
(16/9/2014)
 In this year Indian corporates have
raised Rs. 26,000 crores through
Institutional Placement
 They plan to raise Rs. 50,000 crores in
coming months as more QIP are
expected to follow

687. Expected fund raising in next
12 months (16/9/2014)
 Methods Rs. Crores
 PSU Divestment 45000
 Banks FPO 40000
 IPO & FPO 35000
 Hind Zinc & Blaco Pvt 20000
 SUUTI Stake sale 10000

688. ET 500 reflects revival sweeping across india
(16/9/2014)
 Total revenue of top 500 listed
companies have increased by 11 %
 The total rise in revenue is Rs. 67 lakh
crore

689. 1 year return of stocks
(16/9/2014)
 Company 1 year return
 Sensex 37.1
 RIL 18.9
 IOC 69.1
 BPCL 119.5
 HPCL 136.1
 Tata Motors 64.4
 SBI 67.7
 ONGC 54.4
 Tata Steel 120.2
 Essar oil 123.2
 Hindalco 104.5

690. Govt cash rich (22/9/2014)
 Govt has reduced its first half borrowing by Rs. 16000 crore and
may not borrow this at all.
 Govt had budgeted to borrow Rs. 3.68 trillion in first half and Rs.
2.32 trillion in the second half of FY15.
 Govt to ask ministries to spend more
 This would help GDP to grow as spending would create demand
and consumption

691. PM Prepares to help world
make in India(22/9/2014)
 Govt would set up fully functional online
system
 Budding entrepreneurs can get 100
central and state government approvals
online
 Only one single window clearance
system.

692. Manufacturing growth
stagnated (22/9/2014)
 Year Manufac share in GDP
 1993-94 14.6%
 2003-04 15.2%
 2013-14 14.9%

693. Facts about India (I watch
book) Krishnan Khanna
 India contributes 2.6 % in world GDP
 India has 17 % of world population
 India contributes 2.2% in world trade which
means 97.8% world trade not with India
 Our per capita income is $ 1583 per year as
compared to China $ 5210 and USA $ 47000
 300 million people live below poverty line
 Criteria for BPL is Rs. 26 per day in rural india
and Rs. 32 per day in urban area

694. Facts about India (I watch
book) Krishnan Khanna
 Literacy ratio is 61 % as compared to china 93 %
 88% is drop out rate between kinder garden and 12 std in
india.
 In China all children go through compulsorily 9 years of
schooling
 2,50,000 india go abroad every year for studies which
result into Rs. 75,000 crore of forex spending
 This amount can be used to create 60 IIM and 40 IITs
 Only 28000 foreing students come to india for studies
while in Dubai it is 50,000, Australia 4,00,000 and
singapore 1,50,000

695. Facts about India (I watch
book) Krishnan Khanna
 India has 1.2 billion population and china
1.3 billion
 In India 28 million people are born every
year while in China 17 million
 Life expectancy in India is 67 years and
in china is 75 years.

696. Core Sector Grows
(1/10/2014)
 Core sector growth for the month of August was 5.8% vs
2.7% in July
 Last year In august core sector growth was 4.7%
 Experts believe that the overall core sector growth of 5.8
percent is a positive for the economy given that it forms
37 percent of the index of industrial production.

697. IMF lowers world growth to
3.3% (13/10/2014)
 Sentiment on global growth has taken the severest knock since the
global FINANCIAL crisis.
 Mid-September data showed that Chinese industrial output grew by just
6.9 percent in August, down from the 9 percent level in July, that's the
lowest level since 2008;
 last week data showed that German industrial output in August slid 4
percent, the biggest fall in 5-1/2 years.
 And earlier this week, the IMF pulled down global growth numbers for
2014 to 3.3 percent from 3.4 percent forecast in June and 3.7 percent
forecast in April.

698. IIP Data again shocks
(13/10/2014)
 IIP data has come to 0.4 % as compared
to projection of 2.4 %
 Last month also the IIP data had come
to 0.5%
 Validity of IIP data under question as too
much volatility

699. WPI cools to 5 year low
(14/10/2014)
 Inflation data based on Wholesale Price Index (WPI) for
September eased to 5-year low at 2.38 percent against
3.74 percent on a month-on-month basis on lower food
and fuel prices.
 Food inflation, which came in at 33-month low, stood at
3.52 percent against 5.15 percent
 Fuel and power group inflation came in at 1.33 percent
against 4.54 percent on a month-on-month basis.
Manufactured products inflation came in at 2.84 percent
against 3.45 percent. The July WPI inflation has been
revised to 5.41 percent from 5.19 percent.

700. Trade Deficit widens
(14/10/2014)
 Trade Deficit widens to $ 14 billion
 Exports went up by 2.38%
 Imports up by 20 %
 Oil imports up by 9.76%
 Non Oil Imports up by 36%
 Out of $ 4 Billion rise in imports, gold
accounted for $ 1.75 billion and another
$ 1 billion was due to jems and jewellery

701. DLF promoters barred
(16/10/2014)
 DLF has total debt of Rs. 19000 crore
 Annual interest outflow of Rs. 13500
crore

702. Brokers closing (16/10/2014)
 Brokers are closing their shops though
markets up
 Corporate brokers 400 got closed
 Sub Brokers from 51000 have come to
46000. In sep 2013, the total number of
sub brokers was 79000
 In 2014, around 7700 sub brokers got
closed

703. Switzerland exports gold to India
(27/10/2014) business line
 Gold exports from Switzerland to India
has reached record high of Rs. 70,000
crore
 In september 2014 alone the export was
Rs. 15000 crore
 Gold being used for “layering” purposes
to move funds from Swiss bank to India

704. Europeans banks fail stress
test (27/10/2014) Business line
 13 banks out of 130 top European banks
have failed stress test
 They need to increase their capital buffer
against losses by $ 12.5 billion
 ECB has given 2 weeks time to banks to
increase their capital buffer

705. India set to grow 6.4% in FY16:
World Bank (28/10/2014)
 Buoyed by expectations from the new
government, the World Bank asserted that
India's growth story is on track with its economy
set to grow by 6.4 percent in FY16 and at 7
percent the following fiscal versus 5.6 percent
in FY15.
 The multi-lateral FUNDING agency also
forecasts FY15 inflation (WPI) at 4.3 percent
and current account deficit at 2 percent.

706. Oct 28, 2014, 08.27 AM IST | Source: CNBC
Why OPEC's losing its ability to set oil prices
 US shale oil will replace the Organization of the Petroleum
Exporting Countries as the first-mover "swing producer,"
according to a Goldman Sachs report
 The shift in pricing power became apparent to Goldman when
U.S. shale's spare capacity, at around 5 million barrels per day,
exceeded Saudi Arabia's spare capacity of 1.5 million
 Spare capacity refers to the amount of crude a country is able to
produce in 30 days in case of an emergency.
 By 2019, US shale OIL production will jump to 9.6 million barrles
per day, from 8 million now.
 In comparison, Saudi Arabia currently produces 9.6 million
barrels of crude oil a day.

707. Snapdeal makes the news
(29/10/2014)
 Softbank is japan Internet and telecom
group
 Its has invested $ 627 million (Rs 3800
crores) in Snapdeal
 It had invested $ 20 million in Ali baba
which is now $ 80 billion

708. US ends its bond buying
program (30/10/2014)
 USA has ended its bond buying
programme
 It had announced $ 85 billion per month
bond buying
 It has ended as economy has revived
strongly
 Interest rates still to remain till next year

709. Small shareholders in suspended companies suffer
(30/10/2014)
 Stocks No of retail investors
 Consortex Kari 4,00,122
 Birla Power 2,03,633
 Silverline tech 1,98,135
 Nextgen Animation 1,79,062
 Ispat Profiles 1,42,823
 NEPC Agro 1,34,870
 Bellary steel 1,09,529

710. Govt relaxes FDI in construction sector
(30/102014)
 Minimum Foreign investment cut to $ 5
million from $ 10 million
 Minimum Floor area cut to 20,000 sq m
from 50,000 sq m
 No conditions for projects with 30 %
affordable housing

711. Japan gives stimulus
(3/11/2014) business line
 Bank of Japan has increased it bond
buying from Yen 60 trillion to Yen 80
trillion
 Increased maturity time from 7 to 10
years
 It was pleasure surprise for global
markets as US Fed has stopped the
“Quantitative Easing”.

712. Inflation cools and IIP rises
(12/11/2014)
 Inflation based on the Consumer Price Index (CPI) for the
month of October eased to its all-time low of 5.52 percent, the
lowest since India started computing consumer price index
(CPI) in January 2012, triggered by lower food prices and fuel
costs.
 Meanwhile, the index for industrial output (IIP) for the month of
September came in at 2.5 percent beating street estimate of 2
percent, against 0.4 percent in August.

713. Trade deficit falls (17/11/2014)
Exports hit 7 month low
 India's TRADE deficit in October narrowed sharply to USD 13.36 billion
from USD 14.25 billion in the previous month courtesy decline in oil
imports.
 However, on an annual basis, trade deficit has surged 26.1 percent to
USD 13.36 billion. India's imports fell to USD 39.45 billion from USD
43.15 billion in September, but on a year-on-year basis, it has increased
3.16 percent. Oil and gold are the key contributors to India's import bill.
Oil imports fell to USD 12.36 billion as against USD 14.50 billion, on a
month-on-month basis. Non-oil imports stood at USD 27.08 billion as
against USD 28.65 billion, m-o-m. GOLD imports surged to USD 4.18
billion from USD 3.75 billion in the previous month.
 On a year-on-year basis, gold imports jumped to USD 4.17 billion from
USD 1.09 billion. This spike in could be because of the festivals like
Diwali and Dhanteras, which are considered as most auspicious
occasions in India to buy the yellow metal. Silver imports also rose to
USD 686 million from USD 477.61 million in September.

714. Global investors poll
(18/112014)
 Best opportunities over next 12 months
 Country %
 USA 49
 India 22
 China 22
 EU 17
 UK 17

715. KVP back in flavour
(18/11/2014)
 Financial savings were at 12% in FY 10 which
reduced to 7.1 % in FY 12
 Kisan Vikas Patra is relaunched
 Denomination of Rs. 1000, R.s 5000,Rs.
10,000, Rs. 50,000
 No upper limit of investment
 Money doubles in 100 months (8 years 4
months)
 Annual return of 8.7%
 Encash certificate after lock in of 2.5 years

716. GDP slows (28/11/2014)
 GDP growth comes to 5.3 % vs 5.7 %
last quarter
 Last quarter growth was 4.6 % which
was 10 year low

717. World Economy still fragile
(1/12/2014)
 China PMI falls to 49.6 which is at 6
months low
 China's economic growth is expected to
slow to a 24-year low of 7.4 percent
 European Union to roll out more stimulus
 Bank of Japan has increased Yen
stimulus from 60 trillion yen to 80 trillion
yen

718. Core Sector picks up
(1/12/2014)
 Core Sector growth comes to 6.3 %
 The HSBC PMI hit a 21-month high in
November at 53.3 versus 51.6 in
October. Manufacturing operating
conditions in India improved for the
thirteenth month in a row in November

719. Bank of England (5/12/2014)
 Bank of England leaves rates
unchanged a 0.5 %
 Continues asset buying programme of
375 billion pounds

720. NSE seeks 25 % from Brokers
for SGF (5/12/2014)
 Stock Brokers who are clearing
members will have to give 25 % to core
SGF fund
 This money cannot be used for margin
 Additional cost may hit business
 NSE has Rs 625 crores, BSE Rs. 129
crores and MCX-SX 17 crores as SGF

721. Trade deficit widens
(8/12/2014)
 CAD increased from 1.7% to 2.1% of GDP
 Exports 4.9% vs 11.1%
 Imports $ 10 billion vs $ 5 billion
 Increase in gold imports
 Export growth slid to 4.9 percent in Q2 of 2014-15 from 11.9
percent YoY,
 Imports increased by 8.1 percent in Q2 of 2014-15 as against a
decline of 4.8 percent in Q2 YoY, largely due to a sharp rise in
gold imports.
 Trade deficit in Q2 now stands at USD 38.56 billion versus USD
34.6 billion in the preceding quarter.

722. WPI at 0 % (15/12/2014)
 WPI inflation at 0 % vs 1.77% month on
month
 Food inflation at 0.63% vs 2.77%
 All commodities down 1.3%
 Manufactured products inflation at 2.03
% vs 2.43%
 Fuel and power -4.91%

723. FII rush back in 2015(22/12/2014)
 Year Net flows ($ billion)
 2012 24
 2013 20
 2014 16.5
 In 2014 Sensex has given return of 32 %
 1 $ billion = Rs. 6000 crore (Rs. 60 per
dollar)

724. Indian manufacturing contracts
(22/12/2014)
 Indian Manufacturing output contracted
0.7% in 2013-2014 for first time in 2
decades and only third time after
national gained independence
 In october the IIP has contracted 4.2%
 National Manufacturing Competitive
Council (NMCC) needs to be revamped

725. CSR now geeting real
(23/12/2014)
 For CSR the following conditions
 Rs. 500 crore profit or more OR
 Rs. 1000 crore turnover or more OR
 Rs. 5 crore net profit or more
 Out of 9,50,000 companies only 16000 come under CSR
rule
 According to estimates Rs. 22000 crores would be spend
in CSR this year but implementation is slow

726. Mutual Funds (23/12/2014)
 Rs. 10.67 lakh crore Assets managed by Indian
Mutual funds industry
 67% is through distributors
 33% through direct investments
 90% investment in equity and 55% in debt is
through distributors
 SEBI plans to reduce expenses incurred by
funds to 1.5 % of assets as compared to 2.5 %
which was set 20 years ago

727. USA Economy back on track
(24/12/2014)
 The U.S. economy grew at a 5.0 percent clip in the third
quarter, its quickest pace in 11 years and the strongest
sign yet that growth has decisively shifted into higher
gear.
 Wall Street had expected growth would be raised to only
a 4.3 percent rate.
 The reports further set the U.S. economy apart from the
rest of the world, where growth is sputtering or activity
shrinking.

728. China Nov industrial profits fall 4.2%,
steepest in 27 mths (29/12/2014)
 China Nov industrial profits fall 4.2%,
steepest in 27 mths
 the biggest annual decline since August
2012.
 In October, profits slid 2.1 percent
compared with the same month in 2013.

729. Companies raise 14 % in 2014
(29/12/2014) moneycontrol
 Cos raise Rs 39,127 cr in 2014; down 14% from
2013: PRIME Saving grace came in the form of
the 33 QIPs this calendar year, which saw Rs
31,684 crore being raised from institutional
investors, the highest in 5 years, accounting for
81 percent of the total amount mobilized this
year
 Rs 45,440 crore raised in the 2013

730. Global Indian money may be
treated as local (31/12/2014)
 Since April 2000 ( In $ billion)
 Total FDI 235
 Investment by NRI 4.7
 Share of NRI (%) 2
 Government plans to merge Persons of
Indian Origin (PIO) and Overseas
Citizens of India

731. Amazon and Flipkart wrestle to
shoppers (31/12/2014)
 Flipkart to raise Rs. 1300 crore though
rights issue and borrow Rs. 400 crore
from Kotak Mahindra Bank
 FY 14 Revenues it had Rs. 2846 crores
but loss of Rs. 400 crores
 AMAZON to issue shares worth Rs. 610
crore to parent company
 FY 14 $ 1 billion sales but loss of Rs.
321 crores

732. Repo Rate (31/12/2014)
 Dates Repo Rate (%)
 July 27 2010 5.75
 Mar 17, 2011 6.75
 Oct 25, 2011 8.5
 April 17, 2012 8.0
 May 3, 2013 7.25
 Jan 28, 2014 8.0

733. Cleanse PSU Banks
(31/12/2014)
 PSU Banks have stressed assets t
12.9% of their total loans in Sep 2014
 Private Banks have stressed assets at
4.4% of their total loans in Sep 2014
 The Return on Equity for PSU banks was
8.44% while for Private Banks it is
16.22%

734. Sensex Returns and FII Flows
(31/12/2014)
 Year Sensex(%) FII flows ($ billion)
 2010 17.4 29.3
 2011 -24.6 0.4
 2012 25.7 24.5
 2013 9.0 19.9
 2014 29.4 16.0

735. Sensex Returns (31/12/2014)
 Year Sensex Return (%)
 2014 30 %
 1985 93%
 1991 82%
 2006 46%
 2007 47%
 2009 81 %

736. Investment & not interest rates
matter (31/12/2014)
 From 1952 to 2010, study for American
companies showed that profitability
drives investment rather than lowe
interest rates.
 Interest rate is one of the catalyst but not
the core one

737. Promoters need to put in more
capital (31/12/2014)
 Take project of Rs. 10,000 crore project with 70:30 debt equity.
Promoter has to put in Rs. 3000 crore as equity. But he can get
only Rs. 1000 crore. So he inflates cost of project to Rs. 15000
crore.
 Now his equity contribution comes to Rs. 4500 crore but he gets
credit worth Rs. 10,500 crore more than enough to finance his
entire project.
 During implementation through promoter owned companies,
money will be taken out of the project to fund a part of his equity
contribution and grease palms that allow such inflated project
cost to go not just unchallenged but actually blesssed.

738. Best Performing Equity
markets in 2014 (31/12/2014)
 Markets % Return in 2014
 Agertina 56.62
 China 49.61
 Venezuela 38.35
 Egypt 32.77
 India 29.44

739. Core sector growth rises
(31/12/2014)
 8 core sector growth rises to 6.7% vs
6.3% month on month
 It is at highest level since june 2014

740. Govt fiscal deficit high
(31/12/2014)
 Govt touches fiscal deficit at 98.9% in just 8 months
 India's fiscal deficit was Rs 5.25 trillion (USD 83.08 billion)
during April-November, or 98.9 percent of the full-year target,
government data showed on Wednesday.
 The deficit was 93.9 percent during the same period a year ago.
 Difficult to have fiscal deficit of 4.1% annually

741. Markets Tanked (6/1/2015)
 Markets tanked 3 % biggest fall after
June 2009
 FII sold in cash market Rs. 1500 crores
of shares
 Greece exit talks from EU main reason.
Greece has 177 % Debt t GDP ratio and
Unemployment level of 62 %

742. Greece failing (6/1/2015)
 Greece has to repay 6 to 7 billion Euro in
July and August 2015
 It may run out of cash in March 2015
 In elections in Greece in January 2015, if
opposition wins, they would tear up MOU
signed with EU.
 Greece falling out of EU would create
panic for world markets

743. SBI wants to merge with UTI
(7/1/2015)
 AMC AUM (Rs. Crore)
 HDFC 1,50,468
 ICICI Pru 1,36,763
 Rel Capital 1,26,069
 Birla Sun Life 1,07,968
 UTI 87,390
 SBI 72,142
 The merger if happens would make the largest AMC

744. Divestment coming soon
(12/1/2015)
 Govt plans to sell Coal India stake to
raise Rs. 24000 crores
 In 2010, Govt had sold 10% in coal india
to raise Rs.15000 crores

745. IIP wins (12/1/2015)
 November IIP improves from -4.2% to
3.8 %
 IIP at 5 month high
 Inflation CPI from 4.38% to 5%
 Manufacturing fro m -7.6% to
 Capital goods from -2.3% to 6.5%
 Manufacturing -7.6% to 3 %

746. Pvt Life Insurers Find tough
(13/1/2015)
 LIC opened 1313 offices in 2013-2014
 Pvt Life insurance companies closed 732 offices and
opened 166 offices
 Net closure of offices 566
 Industry saw 9.43% rise in premium income mainly due
to LIC while Pvt life insurance companies saw fall of
1.35% fall in premium collection
 Life Insurance Industry reported profit of Rs. 7588 crores
during 2013-2014. Six companies in private sector gave
dividend
 Total agents in industry is 21.88 lakhs

747. VC funds back (13/1/2015)
 Venture capital firms are on road to raise
neary $ 2 billion or Rs. 12,400 crore to
invest in startups in India
 In 2014 firms raise $ 1 billion to invest in
start ups

748. World bank report (14/1/2015)
 World bank Bi-annually report says world GDP to grow at
3 % in 2015 and 3.3% in 2016
 Earlier forecast was 3.4% and 3.5%
 “The global economy is running on one single engine…
the American one”
 India to grow at 7 % in 2016
 Russia -2.9% in 2015 and 0.1% in 2016
 Eurozone 1.1% in 2015
 Japan 1.2% in 2015

749. RBI cuts Repo Rate
(15/1/2015)
 RBI cuts Repo rate by 0.25% to 7.75 %
from 8 %
 Reverse repo rate now 6.75%
 CRR at 4 %
 SLR at 22 %
 MSF and Bank Rate at 8.75% (earlier it
was 9 %)

750. Dec trade deficit at $9.43 bn
vs $16.86 bn (MoM)
 Trade deficit during December fell sharply to USD 9
billion from USD 16.8 billion in November 2014.
 While exports for the month came in at USD 25.40 billion
from USD 25.96 billion in November, imports declined to
USD 34.83 billion from USD 42.82 billion in the previous
month.

751. Eurozone gives stimulus
(22/1/2015)
 ECB has given 60 billion euro stimulus
per month till sep 2016
 Total quantum to be 1.14 trillion euros
 Interest rates kept unchanged

752. 10 challenges India faces
(23/1/2015)
 1. Revive Growth (job creation)
 2.Improve consumer sentiments (rate cut)
 3.Revive Investment through public spending (pvt sector in huge debt so govt has to spend)
 4.Fiscal Consolidation (2016 target 3.6% and 2017 target 3 %)
 5. Supply side inflation (Investment in supply chain, higher farm productivity)
 6. Disinvestment (Target of Rs. 43000 crore but only Rs. 1700 crore achieved)
 7. Bad loans of State Run Banks (Gross NPA has touched 5.32% in Sep 2014)
 8. Boost Financial Savings (Higher savings so money for investments)
 9. Aggressive taxation (Retrospective tax to be removed)
 10. Improve Ease of Doing Business

753. Bad loans of State Run banks
(23/1/2015)
 Period Gross NPAs
 March 13 3.84
 Sep 13 4.82
 March 14 4.72
 Sep 14 5.32

754. India ask US for investment in
smart cities (23/1/2015)
 Make in India to boost 25 manufacturing
sectors
 Since 2000 USA has invested $ 13
billion into India
 USA is the sixth largest investor in India
 In 2013-2014 US Companies have
invested close to $ 1 billion

755. Euro zone elections
(27/1/2015)
 Opposition party has won elections
 They want to cancel 2012 MOU with EU
 Greece has Debt to GDP ratio of 177%
 Greece has unemployment of 62%
 Greece may run out of cash in March
 Greece has to pay 6 billion euro in july

756. Unemployment rates in
Europe
 Germany 8 %
 UK 20%
 France 24%
 Italy 40 %
 Spain 57%
 Greece 62%

757. Rate cut saw 2000 points rally
(29/1/2015)
 RBI rate cut has lead to 2000 points in
last 10 trading sessions
 Stocks Points contributed
 HDFC bank 449
 ICICI bank 245
 Axis bank 184

758. RBI CUTS SLR (3/2/2015)
 RBI cuts SLR by 50 bps from 22 % to 21.5 %
 Repo rate at 7.75%
 Reverse Repo rate at 6.75%
 CRR at 4 %
 Benchmark policy rate at 7.75%F
 FII can invest in Corporate bonds with 3 year maturity
 RBI to allow Interest rate future contracts on 5-7 year, 13-15
year Govt bonds

759. US creating jobs (9/2/2015)
 USA consecutively for last 11 months
have added more than 2,00,000 jobs on
monthly basis
 The best turn since 1994
 Average of 3,36,000 jobs created a
month for the past 3 months, the best in
last 17 years

760. Govt infuses Rs. 6990 crore in
9 PSU banks (9/2/2015)
 Govt would infuse Rs. 6990 crore in 9
Public Sector Banks
 This decision comes surprise to reports
that Govt would infuse only in those PSU
banks who perform.

761. 14th
Finance Commission
(25/2/2015)
 States to get 42 % as compared to
earlier 32 % from central taxes
 States given more autonomy to
implement welfare programmes
 States will co-operate more for GST now
with Centre this initiative

762. Greece Gets Time (24/2/2015)
 Greece gets 4 months time for
repayment schedule
 Lenders accepts reforms list given by
Greece
 Some breathing time for world economy
 Greece has Debt to GDP ratio of 177%
 Unemployment rate at 62 %

763. China PMI rises (25/2/2015)
 China PMI has increased from 49 .7 to
50.3
 First time in last 3 months
 Raising hope that Chinese economy
comes back on track
 China GDP is already at 24 years low at
7.4% which is lowest since 1990 when it
had registered 7.6%

764. 3 PSU banks to raise Rs. 4500 crore in
Perpetual bonds (26/2/2015)
 Bank Gross NPA Fund Rate %
 Canara 3.35 1500 cr 9.55
 UBI 5.08 2000 cr 10.08
 Dena 5.61 1000 cr
10.25
 Perpetual bond do not have maturity
dates
 Under BASEL III, perpetual bond is more
of quasi equity obligation

765. SEBI Planning OFCD in IPOs
(26/2/2015)
 IPO could have Optionally Fully Convertible Debentures
 If share price goes below lising, the investors gets
principal and Interest
 If share price goes above lisitng, the investor can convert
debenture into shares and sell
 Objective to give retail investor protection of capital
 Between 2008-2011 out of 117 stocks, 72 that is 62 %
were trading below issue price after six months of listing.