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On Slack: MF stripping, FTSE SBI Bond Indices, Form 483, Jeffrey Gundlach, Joseph Stiglitz & more..

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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:

#stocks: Mutual fund stripping: creating book losses of Rs. 8,500 crore

Some argue that till the time no rules are broken, stripping is a fair tax planning strategy that is available. That is really not the case. (Link)

#general: AAP ka flyover: Arvind Kejriwal completes project at Rs 100 crore below cost; Union minister Venkaiah Naidu praises effort

Aam Aadmi Party (AAP) government in Delhi has enhanced the infrastructural work in the national capital. Barely 9 months after coming to power, Chief Minister Arvind Kejriwal has ensured the completion of six-lane elevated road stretching from heavy traffic spot of Azadpur to Prambori. The project was sanctioned Rs 247 crores by the Shiela Dixit government. However, it has been completed through an expenditure of Rs 142 crore. (Link)

#stocks: M&M Dhanteras sales up 70%, sells 11,500 vehicles

Mahindra & Mahindra, a leading UV maker today said that it had sold 11500 vehicles in the domestic market on the day of Dhanteras (November 9), a growth of more than 70% for the company compared to last years Dhanteras day; on the back of a strong demand for its portfolio of products which includes Bolero, Scorpio, XUV500 and TUV300. (Link)

#stocks: Sebi approves Dr Lal Pathlabs IPO

Diagnostic and pathology laboratories chain Dr Lal Pathlabs Ltd on Monday received markets regulator Securities and Exchange Board of India’s approval for its initial public offering (IPO), according to data on the regulators website.

The firm had filed its draft IPO papers on 16 September. (Link)

#stocks: Eros: Return Of The Short Seller (2015)

(Link)

#general: China’s Alibaba breaks Singles Day record as sales surge

E-commerce giant Alibaba has broken its own record for sales on China’s Singles Day, the world’s biggest online shopping event. By the close of trade, the site had seen sales worth 91.2bn yuan ($14.3bn; £9.4bn), a 60% increase from last year.

In comparison, sales on Cyber Monday, which is the biggest online shopping day in the US, hit $1.35bn, according to data analytics firm ComScore. (Link)

#fixed-income: SBI to Launch FTSE SBI Bond Indices

State Bank of India (SBI) proposes to launch FTSE-SBI India Bond Index in association with FTSE TMX Global Debt Capital Markets in order to track Indian fixed income securities.

SBI Mutual Fund, the asset management subsidiary of SBI, intends to use the new index as the basis for a new investment product, a joint statement said. (Link)

 #general: FDA Form 483s From India: A Deep Dive Into the Problems

 A Focus review (thanks to the Freedom of Information Act) of 50 Form 483s issued by the US Food and Drug Administration (FDA) to Indian pharmaceutical and active pharmaceutical ingredient (API) manufacturers over the past two years reveals a slew of detailed quality concerns from the agency.

And although the products described in the 483s have been redacted, and a majority of the FDA observations are for relatively commonplace documentation or procedural issues that will be (or already have been) corrected, there are a number of surprises, particularly as so many of the observations are for egregious errors like altering official documents in front of an inspector, or not maintaining bathrooms for employees, or documenting important manufacturing or electri
cal data on scrap paper in pencil. (Link)

#general: Money Manager Gundlach Says Buy India. Here’s How

Jeffrey Gundlach is a big fan of India’s stock market. So are investors in exchange-traded funds.

“Buy India … and don’t look at your statement for 25 years,” DoubleLine Capital’s chief executive officer told an audience of ETF investors last week at ETF.com’s annual Inside Fixed Income conference, citing the country’s demographics. The World Bank this year predicted India would overtake China as the world’s fastest-growing major economy in the next two years, with gross domestic product growth of 7.1 percent by 2017. (Link)

#general: RBI staff plans mass leave on November 19 to protest against Modi government’s intrusion

Reserve Bank’s employees have proposed one-day mass leave on November 19 to protest what they termed as the government’s intention to curb the apex bank’s activity and intervening into monetary policies.

The United Forum of Reserve Bank Officers and Employees, the umbrella organisation of four recognised unions of officers and workmen staff in RBI, has decided a day’s ‘Mass Leave’ onNovember 19 by around 17,000 workforce, AIRBEA General Secretary Samir Ghosh told PTI. (Link)

#macronomics: A Very Big Mistake: Joseph Stiglitz Slams Obama for Pushing the TPP

As Congress debates the Trans-Pacific Partnership, we speak to Nobel Prize-winning economist Joseph Stiglitz about the trade deal. “The irony is that the president came out and said, ‘This is about who makes the trade rules—China or the United States?'” Stiglitz said. “But I think the big issue is, this is about who makes the rules of trade—the American people, our democratic process, or the corporations? And who they’re made for, which is, for the corporations or for all of us?” (Link)

#backtobasics

How to predict movements in stocks using Heckyl tools – (Link)

Ashwath Damodaran’s class on Valutation – (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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