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Commentary

Weekly Summary: Rupee Tiger, Mutual Fund Commissions, iPhone Deals, RBI Changes

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  • Riding the Rupee Tiger

    I wrote this for Pragati in October 2013. The arrival of a new RBI governor seems to have clicked with the markets – stocks are up to near-all-time-highs, while bond markets have remained positive after some scary moves. The Rupee …

    • Germany and US Bring Good News That Seems to be Bad News

      Two things that are important to note are in the headlines today. First, Germany showed a record high export surplus in October. Germany dispatched €54.8bn in goods to other EU …

      • Off Topic: Don’t Undermine The Mission to Mars

        Balaji Viswanathan has a great post on Indian Space Mission, Poverty and Closet Racism , on how western journalists have portrayed India’s recent Mars mission launch as something terrible because we have all this poverty. And I agree with his …

        • Twitter Goes Public, Gains 76%

          Twitter has listed on the NYSE ( TWTR ) at a 76% premium to the IPO price of $26. The closing price was $44.90, giving the internet social media company …

          • RBI Lets Foreign Banks Expand Through Subsidiaries

            RBI releases guidelines for foreign banks to become fully owned subsidiaries in India. This is likely to mean that banks like Citi, Stanchart and HSBC, which have reasonably large operations …

            • Technicals: The BB-Reject+MACD Strategy Works On Hourlies Too

              Check out Capital Mind Premium! Take a 30-day Free Trial. The Bollinger Band Reject + MACD Strategy seems to be working on hourly bars as well. I have been tracking this for the last five days and the strategy seems …

              • How Much Are You Paying Mutual Funds in Commissions?

                Check out Capital Mind Premium! Take a 30-day Free Trial. A question on Ask Capital Mind goes like this: Is there any link from which I can get to know the Trailing commission which the AMC pays to the distributor? …

                • Russian Online Lender Tinkoff Gets a $3.2 Billion Valuation

                  Check out Capital Mind Premium! Take a 30-day Free Trial. Tinkoff Credit Systems, a credit card lender I’d mentioned earlier ( Man Wins Credit Card Court Case When Bank Didn’t Read What It Had Signed ) has, it seems, gotten …

                  • Introducing: Capital Mind Premium

                    If you’ve loved the content at Capital Mind, you’ll love our new offering – Capital Mind Premium! Capital Mind will produce even better content than it does, and provide it exclusively for premium customers. You’ll get the great in-depth analysis …

                    • Composite PMI Contracts, At 47.5 in Oct 2013

                      Check out Capital Mind Premium! Take a 30-day Free Trial. The HSBC Markit Purchasing Managers’ Index (PMI) – Composite for Manufacturing and Services – for October shows a continued contraction in the production index, at 47.5, from 46.1 in September. …

                      • October Ends With FIIs Selling The Second Largest Amount of Debt Ever, Buying Loads of Equity

                        Foreign Investors continue to sell debt in September, as they buy a truckload of equity. As stock markets hit new highs on their purchases, what seems to have been lost in the melee is that they are getting the heck …

                        • Happy Diwali 2013!

                          Happy Diwali! I hope you all have a prosperous year ahead. In the seventh series of the Capital Mind Diwali Predictions, I bring to you my predictions for the next year, see what I’d said the previous year and wonder …

                          • Unbundling the iPhone 5S Deal For a Cheap Unlimited 2 Year Plan

                            Extending my post on the Indian iPhone 5S deal ( Is the Reliance Apple iPhone 5S Deal Worth it? ) there seems to be an interesting idea. Thanks to the good folks on twitter for all their input. The Phone …

                            • October 2013 at Capital Mind: Onion Prices, The Unbelievable Rally, Unravelling GDP, FIIs Sell Debt

                              Here’s Capital Mind in October, with traffic a little bit light as I took a vacation: Macro and Markets Singapore Hurts Property Bubble By Limits on Housing Loan Payments, Higher Taxes India has the highest petrol-price-to-income ratio in the world …

                              • Is the Reliance Apple iPhone 5S Offer Worth it?

                                RCOM has a great offer for the Apple iPhone 5 (C and S), where you pay very little down, pay every month instead for 24 months, and then get all voice, SMS and data for free, unlimited. But how good …

                                • Term Repo Goes at 8.42%, MSF No Longer the Operational Rate

                                  The third term repo auction – this one for 14 days, and for 38,500 crore rupees – was bid at 8.42%. This is below the weighted average rate of 8.71% last time – and primarily because the MSF rate was …

                                  • India October Manufacturing PMI at 49, Continued Contraction

                                    The HSBC Markit Manufacturing Purchasing Managers Index (PMI) for October shows continued continued contraction, now three months in a row. Manufacturing activity going low a month before Diwali? It seems businesses aren’t purchasing much, and there is a rise in …

                                    • Jignesh Shah Resigns from MCX

                                      So it’s finally started to unravel. Jignesh Shah, the founder of FT which started MCX, has now resigned from the MCX board , after the NSEL debacle. "The NSEL crisis has destroyed everything that I have worked hard to build …

                                      • Infy settles Visa issue for $34 million

                                        Infosys has settled with the US Justice Department in a case alleging abuse of the H1-B and B1 visa system, for a sum of $34 million. H1-B is a work visa. B-1 is a short-term business visa on which you’re …

                                        • The Biggest Monthly Close Ever, The Largest Monthly Move
                                          In 20 months: October 2013

                                          We’re close to an all-time high on the Nifty, and today was the highest monthly closing value for the Index. In an astounding move, the month of October has seen the Nifty up nearly 10% to a mind-blowing 6300. This …

                                          • Rajan Will Not Do a Volcker, For Now

                                            Rajan is unlikely to be a Volcker right now. The policy press conference has this statement: I do not want to say inflation targeting because once you say the word inflation targeting, people have single minded focus on inflation regardless …

                                            • NSEL “Settles” with Mohan India, EOW Freezes Jignesh’s Accounts

                                              !A quick update on NSEL: Mohan India has “ reached a settlement ” with NSEL to pay back Rs. 771 crores out of the Rs. 950 cr. it owes, over the next 12 months. It’s paid back Rs. 25 cr. …

                                              • RBI’s Rajan Increased Repo, Drops MSF, Increases Term Repo Limit

                                                Rajan has , in his first “real” policy, increased the repo rate by 0.25% to 7.75% and cut the MSF rate by 0.25% to 8.75%. Reverse repo goes to 6.75%. Note: Repo is where banks borrow overnight from RBI, currently …