- Wealth PMS (50L+)
The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note by replying to this email.
A brief summary of some of the interesting things discussed there in the last few days:
Life-saving imported drugs to treat cancer, HIV and cardiac failures will now be costlier
In a notification dated February 2, the government has withdrawn the exemption on customs duty on certain bulk drugs. This will increase the duty by 5% to 35%. (Link)
Meet India’s biggest FMCG advertiser — at least for now — the Baba Ramdev-led Patanjali Ayurved Ltd. For the seven days to January 29, TV commercials (TVCs) of products under the Patanjali brand outnumbered those from big consumer goods brands such as Cadbury, Parle and Pond’s. (Link)
Hyperlocal grocery delivery startup BigBasket saw a 2.5 times growth in its revenue in FY 14-15 as its revenue figures reached INR 178 crores.
BigBasket, which is owned and operated by Supermarket Grocery Supplies Private Limited, was founded by Hari Menon, V.S. Sudhakar, Vipul Parekh and Abhinay Choudhari in October 2011. It is an online grocery store that operates through the website and mobile app and provides home delivery in on-time and flexible delivery time slots. (Link)
If the reports now leaking out of North Block are anywhere near true, we are going to get even more initiatives from the centre in the 29 February budget. Both the Modi government and the finance ministry are setting themselves up for failure through an initiative overload. (Link)
Government has to decide on the timing of tabling the amendments to the RBI Act before Parliament, says Rajan (Link)
As we previewed on Thursday, the biggest event of the week, and perhaps of the month, was not Friday’s nonfarm payroll report, but the January update of China’s FX reserves, which the PBOC released last night. The number came out at $3.2309 trillion, down $99.5 billion from the prior month, and $8 billion less than the December outflow of $107.6 billion. (Link)
While Indian steel continues to get whacked for being uncompetitive amid a China-led glut, the nation’s textile sector, which also competes with China, is spinning investors a tidy fortune.(Link)
For the fourth quarter in a row, India has topped global consumer confidence index as measured by research agency Nielsen in 2015. But the catch is that it continues to show signs of a recessionary sentiment for the third straight quarter.
Nielsen’s just released report shows India’s consumer confidence index for the fourth quarter of 2015 was 131, ahead of the Philippines (117), Indonesia (115) and Thailand (114). But 50% of people polled feel India is still in economic recession, implying recessionary sentiment is strong. (Link)
While SEBI has been examining Twitter and Facebook for quite some time for investigation purposes, this is the first time it has used Facebook account as evidence. (Link)
Profit for the quarter ended December at Emaar Malls Group, which owns Dubai’s largest shopping centre, The Dubai Mall, stood at Dh435 million, up 5.5 per cent compared with a year earlier.
Although the profit was up, it was still lower than analysts’ forecasts, missing Bloomberg’s consensus of Dh455m. (Link)
That is the amount of bad loans waived in last three financial years, more than the write-off in the previous nine. (Link)
We secretly interviewed an employee of Rocket Internet, Europe’s most notorious incubator that makes billions of dollars from ruthlessly copying Silicon Valley startups. (Link)
India’s government has asked state-run companies to buy back shares, people with knowledge of the matter said, as Prime Minister Narendra Modi looks to narrow Asia’s widest budget deficit without cutting stimulus spending.
The boards of Coal India Ltd., MOIL Ltd., NMDC Ltd., National Aluminium Co. Ltd., India Renewable Energy Development Agency Ltd. are among those that will have to decide on valuations, the people said, asking not to be identified as the talks are private. These companies had about 784.5 billion rupees ($11.6 billion) in cash and marketable securities last year, according to data compiled by Bloomberg, more than double Modi’s social welfare budget. (Link)
The median estimate from a Reuter’s poll of economists put GDP annual growth at 7.3 percent in the quarter through December, just below 7.4 percent in July-September. (Link)
Oil prices will stay low for as long as 10 years as Chinese economic growth slows and the U.S. shale industry acts as a cap on any rally, according to the world’s largest independent oil-trading house.
“It’s hard to see a dramatic price increase,” Vitol Group BV Chief Executive Officer Ian Taylor told Bloomberg in an interview, saying prices were likely to bounce around a band with a midpoint of $50 a barrel for the next decade. (Link)
Technology stocks will tumble further this year as investors flee to safety and buyers stay on the sidelines, according to Scott Minerd, chief investment officer for Guggenheim Partners LLC. (Link)
Amazon India has notified buyers that they won’t be able to return mobile phones bought from the online retailer. The new policy is only applicable to mobile phones that are fulfilled by Amazon. Buyers will be eligible for getting the device replaced only if the product is defective or was damaged during transit, and not by citing the No longer needed option. The replacement is available for a duration of 10-days from delivery of the product. (Link)
The healthy traffic data however failed to find favor with the investors as the stock declined 4.95% on Feb 5 to close the trading session at $35.69. We believe that the decline was in line with the overall disappointment surrounding the market due to the tech sell-off and the U.S. employment data that was released on Feb 5. (Link)
Terming it a ‘wash-out’ quarter, CLSA retains outperform rating given reasonable valuations and an expected recovery in earnings profile but lowered earnings by 30 percent. (Link)
The Definitive Guide to Point and Figure: A Comprehensive Guide to the Theory and Practical Use of the Point and Figure Charting Method – Link
Truth of the Stock Tape: A Study of the Stock and Commodity Markets with Charts and Rules for Successful Trading and Investing – Link
The Richard D. Wyckoff Method of Trading and Investing in Stocks – Link
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.