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On Slack: L&T Infotech IPO, Airline's fortunes, Coal India, Dalal Street twitterrati, FOMC meet, Stop Orders, The 123 chart pattern and more….

The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)

A brief summary of some of the interesting things discussed there in the last few days:

#general: IndiGo: Desperate for Capacity

IndiGo has turned out to be a consistently aggressive player. The 9 year old airline, which went public when fuel prices were at their lowest and profits at their highest, already flies 98 Airbus A320 current engine option (CEO), and is soon expected to add its 99th airplane. Then, the Airbus A320 new engine option (NEO) starts getting delivered. The magnitude of the airline’s orders, and the airline’s share of the first 35 aircraft to be delivered dwarfs every other airline. (Link)

#general: L&T defers sale of L&T Valves due to L&T Infotech IPO

Larsen & Toubro (L&T) has decided to defer the sale of its wholly-owned subsidiary L&T Valves, as the company focuses on the initial public offering (IPO) of its Information Technology subsidiary, reports a business daily. (Link)

#general: Flipkart’s biggest investor also backs rival Amazon

Amazon, which counts India as its fastest growing market, has enticed Flipkart’s largest shareholder, Tiger Global Management, to significantly increase its stake in the US listed e-tailer. (Link)

#general: Aided by a turnaround in fortunes, SpiceJet in talks to buy 150 planes

Emboldened by a quick turnaround in fortunes under its new promoters, budget airline SpiceJet has initiated talks with aircraft manufacturers to place orders for at least 150 planes, said Ajay Singh, chairman of India’s fourth largest carrier. 

“It will be a significant sized order. And it will be placed soon,” Singh told ET in an interview recently. (Link)

#general: E&P companies in India seek change in crude oil, gas production levy

Foreign and domestic oil and gas exploration and production (E&P) majors operating in India have sought concessions on taxes applicable to the production of crude oil, in view of the global slump in prices. In a communication to the Petroleum and Natural Gas Ministry, E&P majors ONGC Limited, Reliance Industries, Cairns, Essar, BP and BG said that if the viability of existing investments and exploration of new blocks to be auctioned were to be maintained, the structure of levies needed to be changed and linked to current trends in global oil and gas markets. (Link)

#general: Debt-Ridden Air India to Sell 4 Flats in Mumbai for Rs. 90 Crore Soon

Debt-laden Air India will soon sell four residential flats in Mumbai to public sector lender SBI for about Rs. 90 crore as the airline looks to raise funds by sale of certain assets. The proposal, which has been in the works for some months, was recently approved by the Cabinet, sources said.

Air India would be selling four residential flats to SBI in Mumbai soon and the sale is expected to fetch around Rs. 90 crore, they added. (Link)

#stocks: Cabinet approves 10% divestment in Coal India

The Cabinet on Wednesday has approved proposal to sell 10% equity stake in Coal India, the country’s largest coal mining company. The Government of India currently has 79.65% equity shareholding in the company while foreign institutional investors have 9.04% stake and domestic institutional investors 8.44% stake as of September 2015. (Link)

#stocks: Aurobindo Pharma to Seek Shareholders Nod to Raise $600 Million

Aurobindo Pharma will seek approval from its shareholders for an enabling resolution to raise up to $600 million (around Rs 3,974 crore) via issue of securities.

In January this year, Aurobindo shareholders had approved to raise up to $350 million through a Qualified Institutional Placement (QIP) but the company did not raise funds due to unfavourable market conditions. The validity of the resolution is for one year. (Link)

#general: TinyOwl’s Financial Data : Rs. 24,000 Revenue From Operations At 25 Crores Loss

TinyOwl recently completed its one year of operations in June this year. It is a Mumbai based food ordering and delivery app. It claims to have 10,000 restaurants on board and receives 7,000 orders per day. In this article, our partner Tofler looks at the financial performance of TinyOwl in FY 2014-15. (Link)

#general: Delhi Cabinet Clears Lokpal Bill, Could be Tabled in Assembly Next Week

After a day of row in the assembly and out, the Delhi cabinet cleared the Jan Lokpal Bill this evening. The bill could be tabled in the assembly next week, sources said.

The draft bill brings the office of the Chief Minister under the preview of Lokpal. It also stipulates that investigation by the Lokpal be completed in 6 months and trials be conducted in a time-bound manner. (Link)

#macronomics: Investors shaken by Paris attacks flee to Germany

Yields on short term bonds — the return investors get for lending Germany money — were already negative because of the poor European economic outlook. They sank further to a record lowWednesday as the German government borrowed five billion euros ($5.35 billion) over two years at a yield of minus 0.38%.

Germany is seen as a safe haven in uncertain times, and investors are often quick to buy its bonds in response to political and economic instability. Greater demand for the debt means the
government can offer a lower interest rate. (Link)

#macronomics: Most FOMC participants thought December hike appropriate: Minutes

A solid core of Federal Reserve officials rallied behind a possible December rate hike at the central bank’s last policy meeting, but central bankers also debated evidence the U.S. economy’s long-term potential may have permanently shifted lower.

After a summer and early fall that saw the Fed rattled by U.S. market volatility and a sell-off in China, “most” participants felt conditions for a rate hike “could well be met by the time of the next meeting,” minutes of the Fed’s Oct. 27-28 meeting released on Wednesday said. (Link)

#general: From Dalal Street to Twitter: Stock enthusiasts plug into the social network

“Buy Maruti…Kidnapping business will revive in Bihar and Maruti Omni’s sales will multiply. Omni is the best choice for kidnappers.” That frivolous tweet, which was ‘retweeted’ and ‘favourited’ nearly 100 times, represents the good and the bad of stock market recommendations that are daily flying thick and fast across the Twitter world. (Link)

#stocks: Eros International Media – Initiating Coverage Report; and Understanding The Organizational Structure And Writing To The SEC

(Link1) (Link2)

#general: NYSE to eliminate “stop orders” from February

Investors will not be able to make “stop orders” and “good till cancelled orders” on the New York Stock Exchange and NYSE MKT from Feb. 26, the exchange said, as it looks to reduce risks during choppy trading.

A “good till cancelled order” is valid until an investor cancels it or the trade is executed, while a “stop order” allows an investor to buy or sell a stock when it exceeds a particular price.(Link)

#general: Why ISIS Has All the Money It Needs

It’s more than just oil – (Link)

#stocks: Shares of textiles companies in demand, jump up to 9% on govt move

Concerned over continuous decline in exports, government yesterday announced 3 per cent interest subsidy scheme for exporters which will have a financial implication of about Rs 2,700 crore.

The decision was taken at a meeting of Cabinet Committee on Economic Affairs, headed by Prime Minister Narendra Modi, to help boost overseas shipments. (Link)

#stocks: US opposes India’s latest round of incentives to boost textile exports

The United States has opposed India’s latest round of incentives to provide a fillip to exports, alleging violation of a global trade rule for export competitiveness in textiles.

Commerce department officials said the US raised this issue more than a week ago, after India increased support for exports of several products including textiles while expanding the scope of the Merchandise Exports from India Scheme (MEIS) on October 30. (Link)

#macronomics: Highlights of recommendations of Seventh Central Pay Commission

(Link1) (Link2)

#stocks: Indian pharma majors bet big on US generic space

Indian drug makers are snapping up select generic drugs in the US, seeking to expand in their largest market. After several recent acquisitions by Indian drug firms in the US, the latest opportunity that has opened up is Teva Pharmaceutical Industries’s sale of its US generic portfolio.

Glenmark Pharmaceuticals Ltd, Sun Pharmaceutical Industries Ltd and Cipla Ltd are among 30 companies looking to snap up oral solids, c
apsules, soft gels and hormones being sold by Teva, as the Israeli drug firm opens second-round bids for its generic drug portfolio this week. (Link)

#backtobasics:

Law of Unintended Consequences – (Link)

The 123 chart pattern – (Link)

The 5 Stages Every Trader Goes Through On Their Way To Profitable Trading – (Link)

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Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. 

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

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