Financial focus Fortnightly Newsletter

InFINeeti

ISSUE 1 2014 Volume 5

TOP STORIES……………1 MARKET ACTIVITY…..….2

ECONOMICS.………....….3

FINE WORD FROM

FIN WORLD......…………..4 POLICY RATES AND

MARKET UPDATES…….. 5

WARREN BUFFETT

MANAGEMENT RULES… 5

A o n e s t o p g u i d e t o k n ow a b o u t a l l t h e r e c e n t h a p p e n i n g s i n t h e f i n a n c i a l w o r l d

TOP STORIES : INDIA

BSE MARKET-CAP AT RS 100 TRILLION; INVESTOR WEALTH UP 10 TIMES IN DECADE: Scaling a new peak, the total investor wealth in

Indian stock market today hit a record high of Rs 100 trillion, marking a jump of ten times in little over a decade. Measured in terms of total market capi-talisation of all listed companies on the country’s biggest bourse BSE, the overall investor wealth in the Indian stock market rose to Rs 100.01 lakh

crore Read more...

Financial focus

HOW THEY KILLED THE MAHARAJA: Call it over-exuberance or

singular hype. Officially, we are told that the country’s civil aviation sector is on a high growth trajectory, valued at $16 billion and all set to become the world’s third largest aviation entity by 2020. However, there is a huge deception in this happy story — national carrier Air India is in a pathetic shape, gasping for breath as it stares at a debt running upwards of Rs 55,000 crore and accumulated losses of more than Rs 30,000 crore, lead-

ing to shrill demands that it should be privatised. Read more...

INDIA’S TWO-SPEED ECONOMY THREATENS GROWTH HOPES: India’s growth rate has been strikingly uneven over the last decade, plunging from over 9% in the boom years between 2004 and 2007 to below 5% between 2012 and 2014. That’s a large part of the reason new Prime Minister Narendra Modi sailed into office so easily. If Modi wants to fulfill his promises to revive India, though, he’s going to have to

address a different kind of disparity, one rooted in geography. Read more...

HOW ONLINE MARKETPLACES ARE CHANGING THE LIVES OF THOUSANDS OF MERCHANT: From garages in Mumbai to sari shops

in Varanasi, thousands of manufacturers and traders are today tapping a rapidly growing online retail market in India thanks to marketplaces like Flipkart, Snapdeal and Amazon. The ability to reach out to a nationwide market and lower costs are ensuring a sharp increase in sales for the over

80,000 merchants who sell just on these portals. Read more...

Financial focus Fortnightly Newsletter

InFINeeti

GOLD AT 2-WEEK LOW ON EASING OF IMPORT CURBS BY RBI

Gold prices today plunged by Rs 270 to trade at over two-week low of Rs

26,400 per ten gram in the national capital after the Reserve Bank yesterday

eased curbs on import of the precious metal. Silver also extended losses for

the third day and tumbled by Rs 820 to Rs 35,380 per kg on poor off take by

industrial units and coin makers. Read More...

SENSEX, NIFTY CONTINUE RECORD BREAKING RUN

Continuing their rallies, the BSE Sensex and the CNX Nifty set new records

during the week under review and closed at new closing highs of 28,693.99

and 8,588.25 respectively on sustained foreign fund inflows amid falling

crude prices. Read More...

TOP STORIES : WORLD

OPEC GUSHER TO HIT WEAKEST PLAYERS, FROM WILDCAT-TERS TO IRAN

Saudi Arabia and its OPEC allies’ firm stand against cutting crude output to slow the plunge in oil prices has set the energy world on a painful course that will leave the weakest behind, from governments to U.S. wildcatters. A grand experiment has begun, one in which the cartel of producing nations -- sometimes called the central bank of oil -- is leaving the market to decide

who is strongest and how to cut as much Read more...

INDIA-PAKISTAN FRICTION THREATENS SOUTH ASIA TRADE AT HIMALAYAN SUMMIT

Hostilities between rivals India and Pakistan on Wednesday threatened to scupper efforts by South Asian leaders to boost trade among almost a quar-ter of the world's people, throwing into doubt any prospect of a regional customs union. India and Pakistan have fought three wars, and just last

month exchanges of fire across the border Read more...

RUSSIA PUTS LOSSES FROM SANCTIONS, CHEAPER OIL AT UP TO $140 BILLION PER YEAR Lower oil prices and Western financial sanctions imposed over the Ukraine crisis will cost Russia around $130-140 billion a year - equivalent to around 7 percent of its economy -Finance Minister Anton Siluanov said on Monday. His comments are the latest acknowledgement by Russian policymakers that

sanctions Read more...

MARKET ACTIVITY

Financial focus Fortnightly Newsletter

InFINeeti

OVER DOZEN COMPANIES APPLY FOR PUBLIC OFFERS IN FY-15

Looking to tap into the upbeat investor sentiment, over a dozen companies

including Videocon D2H and Rashtriya Ispat Nigam Ltd have filed initial pa-

pers with market regulator Sebi for getting listed in the current fiscal. Since

April, 13 firms have filed the Draft Red Herring Prospectus (DRHP) with Sebi

to launch an initial public offer (IPO), while SMC Global Securities Read

More...

ECONOMICS

11 Little Know Facts About China

China is the most populous country in the world, and its 1.35 billion na-

tionals consume copious amounts of food and resources. Read More...

DID YOU KNOW ?

INDIA EASES GOLD IMPORT RESTRICTIONS

India, the world’s second-biggest user of gold, eased regulations on imports

to remove distortions in shipments and curb smuggling. Rules requiring im-

porters to sell 20 per cent of their shipments to jewellers for re-export as jew-

ellery were withdrawn. However, concerns remained over restrictions on gold

by other means. Read more...

GOVERNMENT TO IMPLEMENT LARGE NUMBER OF FSLRC PROPOSALS : FINANCE MINISTER

Steps under consideration include putting in place an Indian Financial Code

that will replace the bulk of existing laws in the financial sector and create a

single regulator for pension, equity, insurance and commodities markets.

Read more...

SHIPPING REFORMS: DUTY CUTS, PORT DEVELOPMENT ON GOVERNMENT AGENDA

The government plans to remove the 25-30 percent customs duty levied on

fuels used by Indian ships and ease other logistical hurdles to push for more

usage of the sea route for both domestic and international cargo. Immediate

impact of such a move will be a revenue loss of just around Rs.60 crore per

annum. However, long term benefits could be numerous. Read More...

Financial focus Fortnightly Newsletter

InFINeeti

Fine Word from Fin World:

OSTRICH

An ostrich does not actually bury its head in the sand when confronted by danger, but flops to the ground and remains

motionless. This passive behaviour exacerbates the danger faced by the ostrich, since it becomes an easy target for a

predator who is not fooled by this feeble attempt to play dead. Likewise, investors who act like ostriches when faced

with market risk – which is unavoidable – or by stock-specific risk could see their investment losses multiply if they do

not “get their heads out of the sand” and take remedial action. For example, investors who chose to ignore the barrage of

bad news that accompanied the 2008-09 global bear market would have suffered declines of more than 50% in their eq-

uity portfolios. Although these steep declines occurred in a relatively short time period, they did not occur overnight.

While an active investor may have been successful in escaping part of these losses by trimming equity exposure before

the worst of the market declines, an ostrich investor would have simply ignored the news about the bankruptcies of fi-

nancial institutions, the global credit crisis, etc. and stayed fully invested. Ironically, this buy-and-hold behaviour can

actually benefit an ostrich investor who holds blue-chips over long time periods, since they remain invested through

good times and bad. Continuing with the above example, an ostrich investor who stayed with blue-chip U.S. equities

through the 2009 market lows and subsequent rebound would have reaped the benefit of a 150% advance in the S&P

500 from March 2009 to September 2013. But while ostrich behaviour can actually pay off if one is invested in blue-

chip stocks or an index over the long term, it can take a huge toll on a portfolio if an investor has substantial exposure to

a speculative stock or sector. An investor who has 20% or more of his or her total portfolio invested in a speculative

stock should monitor this exposure carefully, with a view to cutting losses and salvaging at least part of the amount in-

vested if the investment does not work out. Sticking one’s head in the sand may cost the investor dearly in this scenario.

ICARUS FACTOR

In Greek mythology, Icarus and his father, Daedalus, were imprisoned in Crete by King Minos. Daedalus created two

sets of wings made from wax and feathers. He and his son were to use them to escape by flying. Daedalus warned his

son not to fly too close to the sun. Icarus was overcome with the excitement of flying and disregarded his father's warn-

ing. He flew higher and higher, approaching the sun. As the wax melted and the feathers fell, so too did Icarus fall to his

death in what is now called the Icarian Sea, near Icaria, an island southwest of Samos. The Icarus factor is most often

seen when companies plough into businesses that work on different models from their existing lines. As they spend more

and more money to try and catch up to companies already dominant in those fields, they use up the cash reserves built up

by their core business - sometimes this drain can be fatal. Source: www.Investopedia.com

INDUSTRY WATCH — BANKS — TOP PERFORMERS

Financial focus Fortnightly Newsletter

InFINeeti

InFINeeti Team

POLICY RATES AND MARKET UPDATES

DATE :- 30/11/2014

WARREN BUFFET MANAGEMENT RULES : RULE 9 & 10 RULE 9 : We feel noble intentions should be checked periodically against results. We test the wisdom of retaining earn-ings by assessing whether retention, over time, delivers shareholders at least $1 of market value for each $1 retained. To date, this test has been met. We will continue to apply it on a five-year rolling basis. As our net worth grows, it is more difficult to use retained earnings wisely. RULE 10 : We will issue common stock only when we receive as much in business value as we give. This rule applies to all forms of issuance – not only mergers or public stock offerings, but stock-for-debt swaps, stock options, and converti-ble securities as well. We will not sell small portions of your company – and that is what the issuance of shares amounts to – on a basis inconsistent with the value of the entire enterprise.

BANK RATE 9.00

REPO RATE 8.00

REVERSE REPO RATE 7.00

MARGINAL STANDING FACILITY RATE 9.00

SENSEX 28,693

NIFTY 8,588

Adhiraj Bandyopadhyay (9088342361)

Gayathri Bhuvanagiri (8274948812)

Mehul Gahrana (9920934516)

Suryanarayan Panda (9830351387)