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On Slack: Ujjivan Fin, Thyrocare IPO, Qatar waives Rs 12,000cr liability, Cash-rich PSUs to buy into peers, Army fleet upgrade project, Mr Kejriwal's 'Simple Simon', Option Strategy Builder 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: PAN must for cash payment of hotel bill over Rs 50,000 from tomorrow

Furnishing PAN will be mandatory from tomorrow for cash transactions such as hotel or foreign travel bills exceeding Rs 50,000 – a move aimed at curbing the black money menace.

Besides, PAN will be a must for all transactions, including purchase of jewellery, above Rs 2 lakhs in cash or through card with effect from January 1, 2016, the Finance Ministry said in a notification. (Link)

#general: Ujjivan Fin, Thyrocare file for IPO

The IPO market promises to be exciting in 2016 too, with Ujjivan Financial Services and Thyrocare Technologies filing draft documents with capital market regulator SEBI on the last day of the year. (Link)

#general: Qatar halves gas price, waives India’s Rs 12,000cr liability

In a major energy diplomacy coup for the Narendra Modi government, Qatar has nearly halved the price of gas it sells under a 25-year contract and waived a payment liability of Rs 12,000 crore arising from India’s refusal to import the committed number of shipments in 2015 under the ‘take-or-pay’ clause. (Link)

#general: Happy New Year! Sensex may rally up to 35,000 in ’16: ETMarkets Poll

Calendar 2015 might have ended as a washout year for domestic equities, but analysts at top brokerage firms expect equity benchmark Sensex to rally up to the 35,000 level, a 30 per cent upside from Thursday’s closing of 26,117.54, in calendar 2016. (Link)

#general: Government may ask cash-rich PSUs to buy into peers to make up for disinvestment shortfall

The government, staring at a massive shortfall in its disinvestment target for the year, could ask cash-rich state-run firms to pick up stakes in other public sector companies, a tactic that attracted a lot of flak when it was first employed during the Vajpayee era.

Another idea being considered to compensate for the yawning gap in disinvestment receipts is to lean on cash-rich companies to explore share buybacks in which the government could consider tendering its shares. (Link)

#general: Tatas, M&M may participate in Rs 12,700-crore Army fleet upgrade project

The Army is all set to reverse its decision to hand over a mega Rs 12,700-crore upgrade of its fleet of infantry combat vehicles to the public sector. The deal will now be opened up for the private sector as well, allowing top players like Tata and Mahindra to participate in the bid.

Sources familiar with developments have told ET that the new plan entails splitting the contract to modernise over 1,600 in-service BMP2 armoured vehicles in two rounds. In the first phase, 640 of the Soviet origin infantry combat vehicles will be straight away put up for the private sector to bid on a competitive basis. Based on this, a final call will be taken on the remaining vehicles. The Ordnance Factory Board (OFB) is, however, lobbying hard to retain part of the balance contract. (Link)

#stocks: See Sensex at all-time high in March 2016: Astromoneyguru

(Link)

#general: PBOC Injects Most Cash Since September in Open-Market Operations

The People’s Bank of China offered 130 billion yuan ($19.9 billion) of seven-day reverse repos on Tuesday at an interest rate of 2.25 percent. The monetary authority suspended the operations in the last auction window on Dec. 31, ending a six-month run of cash injections that helped drive borrowing costs lower amid an economy estimated to grow at the slowest pace in more than two decades. (Link)

#stocks: Ujjivan Financial Services and Thyrocare Technologies file for IPO

According to the draft red herring prospectus filed by Ujjivan the company is looking to raise Rs.650 crore through the sale of new shares. (Link)

#general: New Income Tax Reporting Norms for High Value Transactions from April 1

Under the new norms, cash receipts, purchase of shares, mutual funds, immovable property and term deposits, and sale of foreign currency will have to be reported to the tax authorities in a prescribed format – Form 61A. (Link)

#general: Food tech startup Eatlo halts operations as cloud kitchens face the heat

Food delivery start-up Eatlo Tech Solutions Pvt. Ltd has stopped operations barely a year into its existence. It is not immediately clear if the company has completely closed down.

Bengaluru-based Eatlo had raised about Rs.6 crore in two rounds from Powai Lake Ventures; Abhishek Goyal, co-founder of start-up tracker Tracxn; and Haresh Chawla, partner at India Value Fund Advisors. (Link)

#general: Indian mid- and small-caps remain world’s best equity category: Shankar Sharma

Interview with Vice-Chairman and Joint Managing Director, First Global (Link)

#general: Too Much Rubber, Too Few Tires Leaves Tappers in a Sticky Place

(Link)

#general: Sunil Sethi: Mr Kejriwal’s ‘Simple Simon’ solutions

The chief minister in cosy jersey and muffler, who once promised free water and power at slashed rates, is introducing odd-even use of cars from January 1. (Link)

#general: Sleeping with the enemy: big banks skirt confrontation to embrace fintech startups

(Link)

#stocks: L&T Infotech gets SEBI clearance for Rs 2,000-crore IPO

L&T Infotech, a subsidiary of engineering giant Larsen & Toubro, has received capital markets regulator Sebi’s approval to float an initial public offering worth Rs 2,000 crore.

The issue comprises an offer for sale of up to 1,75,00,000 equity shares of face value of Rs 1 each by Larsen & Toubro. (Link)

#general: General Motors invests $500 million in Lyft, plans self-driving cars

General Motors Co. is betting $500 million that ride-hailing services such as Lyft Inc. will be crucial to the future of autonomous vehicles.

The auto maker has invested that sum in Lyft as part of a new $1 billion round of funding, the companies said Monday. Saudi Arabia’s Kingdom Holding Co., Janus Capital Management and Japanese e-commerce major Rakuten Inc. also contributed to the financing, which values Lyft at $5.5 billion. (Link)

#general: Michael Burry, Real-Life Market Genius From The Big Short, Thinks Another Financial Crisis Is Looming

(Link)

#general: Why this picture may be the omen for 2016

(Link)

#backtobasics:

A Year Of Living Technically: Charting The Markets Of 2015Link

Comedy in Car with President Barack Obama – Link

How to keep pace with New Year’s Resolutions by Applying Design ThinkingLink

Last quarter and full year 2015 in charts – Link

Option Strategy Builder – Link

Technical Analysis Course Martin PringLink

This Time Isn’t DifferentLink

Visual Capitalist’s Top 15 Infographics of 2015Link

What to Expect in 2016 – 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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