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On Slack: GST roll-out, CNG stickers, Nevsky Capital, e-Golf Touch and the BUDD-e, George Soros Sees Crisis, Circuit Breaker, Straddle Options Spreads, Market Trends to Watch and 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:

#general: Rahul Khullar: Towards a better-connected India

The Department of Telecommunications must take up expansion of coverage in grossly under-served areas and revival of the telecom industry as national priorities. (Telecom, India, Industry)

#general: UDAY hinges on structuring of discom debt takeover

Banks will need to take a haircut despite UDAY’s aim of bailing them out (Discom, UDAY, Banks)

#stocks: EduComp lenders looking at strategic debt restructuring

As of September quarter, the total consolidated debt of the company was at Rs3,056.99 crore. (Educomp, Debt)

#general: The alarming increase in Cesarean births in India

The past decade has seen India cross that WHO threshold for cesareans at an overall level. (Cesarean, WHO, India)

#macronomics: Saudi Aramco Raises Asia Oil Prices Amid High Refiner Profit

State-owned Saudi Arabian Oil Co. increased its official selling price for Arab Light crude sold to Asia by 60 cents a barrel to 80 cents below the regional benchmark, it said in an e-mailed statement. The company, known as Saudi Aramco, was expected to narrow the grade’s discount by 55 cents a barrel, according to the median estimate in a Bloomberg survey of six refiners and traders. (Oil, Aramco, Saudi)

#general: GST roll-out deadline likely to be pushed back to April 1, 2017

Top finance ministry sources said the announcement may be made in the upcoming Budget session. The official said major progress would be made in budget session on GST, which would subsume all indirect taxes into one uniform levy across the country. (GST, Budget Session, Parliament)

#general: Top 5 Indian stocks exposed to the slowdown in the Gulf

Here is a list of Indian companies that have a business interest in West Asia and could face some direct or indirect pressure if the slowdown gets extended beyond Saudi Arabia. (Gulf Slowdown, Stocks, Oil Prices)

#general: Record onion production likely

Convinced by govt’s open market procurement last year, farmers bring 9-12% additional area under onion cultivation this year. (Onion, inflation, farmers)

#general: Sold for Rs 2,800, CNG stickers now at just 1 gas station

If you have a CNG car and still haven’t got the stickers being issued by IGL, you will have to go to the Lodhi Road gas station for the same. The move comes after a man was caught selling CNG stickers for Rs 2,800 each at a gas station in Vivek Vihar. (CNG, Delhi)

Psychology-of-Market-Cycles

#general: TCS, ITC, Idea Cellular and HCL among likely multi-baggers: Ambit Capital

These are the stocks identified by Ambit Capital that could fetch multi-fold returns. The brokerage has identified 30 stocks in the BSE 500 index based on accounting quality and corporate governance filters. (Stocks, multi-baggers, Ambit Capital)

#general: China plans to restrict stock sales by large shareholders

China plans to restrict stock sales by large shareholders once a ban imposed in July to stop a slide in prices is lifted this week.

Stockholders who own more than 5 per cent of a company will be required to sell shares through private transactions to “avoid shocks to the market,” the China Securities Regulatory Commission said on its micro-blog. (China, stock market, market crash)

#general: Why $1.5 Billion Nevsky Capital Is Shutting Down: The Full Letter

(Nevsky Capital, Hedge Funds, Martin Taylor)

#general: From diggers to data centres

Computers, research and software will be the big-ticket items in 2016 (Computers, technology, future)

#general: Hippie dreams: Volkswagen shows off electric Microbus concept

Volkswagen brand chief Herbert Diess introduced two new concept electric vehicles Tuesday night at the 2016 Consumer Electronics Show: the e-Golf Touch and the BUDD-e. (Volkswagen, electric vehicles, CES2016)

#general: AT&T voice assistant helps you control your smart home

The Digital Life Voice Assistant can steer your security alarm, lights and more. (AT&T, Smart Home, Digital Life Voice Assistant)

#general: The Case of the Missing Cases: Malaysia Air Suffers Latest Snafu

The airline on Tuesday banned check-in baggage on flights to Paris and Amsterdam, saying strong headwinds might cause its planes to run out of fuel if they were too heavy. Hundreds took to the Internet to complain, criticize and mock the carrier, which then dropped the baggage ban Wednesday, explaining it had found a shorter way to Europe. No other airline asked passengers to leave their luggage because of the windy weather. 

(Malaysian Air, Snafu)

#general: Online retail giant Flipkart starts talks with investors to raise $1.4 billion

Flipkart has started talks with investors to raise about $1.4 billion (Rs 9,200 crore), four people aware of the development said, as it keeps up its fundraising spree. (Flipkart, Funding, Unicorn)

#general: Maruti Suzuki launches automatic DZire at Rs 8.39 lakh

The country’s largest car maker Maruti Suzuki India Limited (MSIL) launched auto gear shift technology in top-end diesel version of entry-level sedan DZire tagged at Rs 8.39 lakh (ex-showroom, Delhi).

With this DZire becomes the first diesel car – and the fourth model in Maruti Suzuki’s portfolio – to be offered with AGS technology. (Maruti, Dezire, AGS Tech)

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#general: 2016 will be the biggest year in Reliance Industries history: CLSA

The Mukesh Ambani-controlled oil-to-telecom giant is set to commission nearly $30-billion of projects this year alone, setting the stage for faster earnings growth and a possible rise in return on equity. (Reliance, Mukesh Ambani, $30bn Projects)

#general: Petrol, diesel sales down 25% in Delhi since odd-even scheme kicked in

Delhi has about 400 filling stations, with each selling 470,000 litres of petrol and diesel on average every month. “This can fall to 300,000 litres this month if sales were to slide at this pace,” said Ajay Bansal, the chief of All India Petroleum Dealers Association (AIPDA). “If the odd-even formula were to continue for long, we will have to significantly cut our expenses to match the lower volumes we sell these days,” (Petrol/Diesel, Delhi odd-even)

#general: George Soros Sees Crisis in Global Markets That Echoes 2008

 (Soros, Global Markets, Repeat of 2008?)

#general: Saudi Arabia warned on oil strategy by financial crash economist Roubini

Saudi Arabia must stop acting as though the oil price decline is temporary, says Nouriel Roubini, the NYU economist credited with predicting the 2008 financial crisis.

“If you look at Saudi Arabia’s response to the low oil price, they’ve reacted to this shock as if it’s temporary rather than permanent,” Mr Roubini said, on the sidelines of the Arab Strategy Forum in Dubai on Tuesday(Saudi Arabia, Roubini, Oil Prices)

#general: China Suspends Stock Circuit Breaker Days After Introduction

China’s securities regulator held an unscheduled meeting on the nation’s tumbling stock market without coming to a decision on policy action, according to a person familiar with the discussions.

The China Securities Regulatory Commission held an internal meeting to assess market conditions and the nation’s new circuit breakers after a selloff forced local exchanges to shut for the second day this week, the person said, declining to be named because he wasn’t authorized to speak publicly. The CSRC didn’t immediately respond to requests for comment. (China(Chinese SRC(Circuit Breakers)

#general: I have seen the future, and it doesn’t mention Uber

(Uber)

#macronomics: Iran Announces New Anti-Saudi Measures as Diplomatic Spat Worsens

In a further escalation of a very tense week of diplomatic sparring between Iran and Saudi Arabia, the Iranian government on Thursday announced that it was banning imports of products from Saudi Arabia. Iran stopped short of a ban on the annual Hajj pilgrimage, which some have speculated may be coming, but reaffirmed an existing ban on the umrah, or lesser pilgrimage, which can be made at any time throughout the year. (Iran, Saudi, Diplomatic tussle)

#stocks: Petition against Sun Pharma for allegedly violating merger norms

Union claims Sun transferred and demoted some employees belonging to Ranbaxy after acquiring the firm. (Sun Pharma, Ranbaxy, Merger Troubles)

#macronomics: IMD declares an end to droughts in India

The Met dept has decided to simply replace the word ‘drought’ to describe poor rainfall with ‘deficient year’ and ‘large deficient year’. (IMD, Drought-free?, MET)

#general: Government asks PSUs to pay 30% dividend to deal with Budget deficit

The new dividend policy has hiked the dividend income for the Central government from the earlier rates of 20 per cent of profit after tax (PAT) or 20 per cent of equity, whichever is higher. Firms with large cash surplus such as Coal India Limited (CIL) could also issue bonus shares, the finance ministry has said in its order to chiefs of Central public sector enterprises (CPSEs). (PSU Stocks, Dividends, Budget Deficit)

#general: One only needs common sense to make money in stock market: Porinju Veliyath, Equity Intelligence

(Porinju, Equity Intelligence, Investing Gyan)

#general: We compared Netflix shows across
new countries. The results are surprising

So Netflix just made a big bang announcement, launching its video streaming service in 130 countries all at once, smashing expectations. As a Netflix user, I was thrilled. It’s one of those companies that’s truly making an industry better, striking fear into broadcasters, production studios, and cable companies alike.

But is the global launch worth the hype? Should you be plonking down money to subscribe to the service? We did a comparison of Netflix in Singapore, India, Indonesia, and Malaysia – four of the new markets that launched today – with the US version. The results, it turns out, aren’t as bad as some might have feared. (Netflix, India, Indonesia, Malaysia, Singapore)

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#backtobasics:

Bill Gross Warns Of Demographic DoomsdayBill Gross, Demographic Doomsday

How To Manage Straddle Options SpreadsStraddles, Options

Keynesian Economics 101 (In 4 ‘Simple’ Lessons)Keynes, Economics

Value Investing Genius Sanjay Bakshi: Market Trends to Watch — and Ignore – Prof. Sanjay Bakshi, Market Trends

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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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