- Wealth PMS (50L+)
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:
Loan impairments, including restructured loans, across Standard Chartered’s India portfolio surged to $1.3 billion in 2015 from $171 million in 2014. (Link)
Plunging stocks have at least made one set of investors happy. Promoters such as Sunil Bharti Mittal of Bharti Airtel and Kansai Paints of Japan have lapped up shares of their companies taking advantage of valuations at multi-year lows. (Link)
If a foreign company invests $2 billion, it will get residency permits allowing long stay in India for its key executives as well as cheap rates for utilities and a special package on upscale housing. That’s the latest policy idea of the Modi government, which is pushing hard to make India a more attractive foreign investment destination.
Senior officials, who spoke on the condition they not be identified, told ET the proposal could be formally unveiled after the Budget session of Parliament gets over in mid-March. (Link)
Sugar prices soared nearly 9% in a market “blitzkrieg”, fuelled by an International Sugar Organization upgrade to its estimate for the world production deficit, and rumours over European availability too.
Raw sugar futures for March touched 13.72 cents a pound in New York at one point, crossing back over their 100-day moving average, before easing back to 13.50 cents a pound, a gain of 7.1% on the day. (Link)
Hitler provided Germany with extremely effective administration – the trains ran on time, as did the trains during our own Emergency in 1975-77′. (Link)
According to Angel Commodities, sugar is expected to trade sideways to higher on need based buying from traders and stockists as stock levels are higher in the country. (Link)
Every time a negative narrative surfaces, a possible counter would be initiated — through press releases, briefings or press conferences, depending on the intensity or standing of the post,” said sources. (Link)
Bailing out public-sector banks from the NPA crisis will either increase the fiscal deficit or lead to cuts in welfare and capital expenditures. (Link)
Depletion of cash surpluses might have limited the ability to draw from central government grants. (Link)
There is just too much money chasing too few quality start-ups in India and, whilst Piramal’s entry into the VC industry is good news for entrepreneurs, it is not necessarily the best for the investor in VC funds. (Link)
Indigo, Jet, Spice Jet and Go Air demand level playing field in aviation policy, say government can’t favour only two new airlines. (Link)
The Food and Drug Administration, which regulates about a quarter of every dollar Americans spend, has a new boss — and he’s already under fire for being too cozy with the pharmaceutical industry.
Dr. Robert M. Califf, a cardiologist and researcher, was nominated by President Obama in September to become the new commissioner of the agency. His confirmation by the Senate was delayed by lawmakers, many of them Democrats, who worried that his links with the pharmaceutical industry would bias his ability to regulate that business and who voiced disapproval over the FDA’s handling of the opioid abuse crisis in America. (Link)
National Payments Corporation of India (NPCI), the organization which the hub of all on
line payment systems operating in the country is all set launch the highly anticipated ‘Unified Payment Interface’ (UPI) from April, 2016. (Link)
No surcharge, service charge and convenience fee will be levied on card and digital payment.
The Union Cabinet chaired by the Prime Minister Narendra Modi on Wednesday gave its approval for introduction of steps for promotion of payments through cards and digital means.(Link)
Given the turbulence in 2015, the predictions are ominous for the markets this year too. Keeping that in mind, Forbes India has put together a portfolio of companies that can help tide over bad times. (Link)
Sikka’s total compensation now stands at $11 million a year, up from $7.08 million earlier.(Link)
The move is unusual, not only because it has never been done before, but also because of the message it sends out. (Link)
China warned the United States on Wednesday not to adopt punitive currency policies that could disrupt U.S.-China relations after Donald Trump’s win in the Nevada caucus.
Foreign Ministry spokeswoman Hua Chunying told reporters in Beijing that “we are following with interest the U.S. presidential election.” (Link)
Foreign holdings of rupee-denominated debt are falling at the fastest pace since December as losses in Indian bonds deepen and the currency hovers near a record low.
The nation’s sovereign notes have turned into Asia’s worst performers in 2016, from the best in the previous two years, amid concern Prime Minister Narendra Modi’s Feb. 29 budget will show fiscal discipline is slipping away. (Link)
The rail budget presented today (25 February) has all the finger-prints of Narendra Modi himself, with the sheer number of alliterative initiatives being a dead giveaway. Prabhu, for example, talked of Nav Arjan, Nav Manak and Nav Rachna – meaning new revenues, new norms, and new structures. Modi surely must have had a hand in this formulation, with supportive evidence coming from his sanguine expression throughout the speech. (Link)
Emerging-market assets are so cheap that they may be “the trade of a decade,” according to Research Affiliates LLC, a sub-adviser to Pacific Investment Management Co., one of the world’s biggest money managers.
They’re joining a growing number of investors, including BlackRock Inc., Franklin Templeton and Goldman Sachs Asset Management, who are turning bullish on emerging markets after three years of underperformance. With borrowing costs at the highest levels since the depths of the global financial crisis, traders are being compensated for challenges ranging from falling commodity prices to China’s economic slowdown, BlackRock said Tuesday. (Link)
The Reserve Bank of India (RBI) on Thursday asked lenders to spread out in equal instalments provisions they make when they take over troubled loan accounts under a special restructuring programme to deal with stressed assets.
The RBI asked banks to build up over four quarters provisions amounting to at least 15 percent of the loan for so-called strategic debt restructuring (SDR). In that programme, banks will swap part of the loan for majority ownership of a troubled company and then look for a new owner.(Link)
Unitech says that it has repaid Rs.264 crore out of the Rs.300 crore loan and the remaining would be paid shortly. (Link)
After a few years of reasonably calm markets and stable growth around the world, Citigroup Inc. says the chances of a global recession are already high and only going up.
“In our view, global growth is at a highly precarious point, after 2-3 years of relative calm,” the team of economists led by Willem Buiter said in their note, which is likely to exacerbate concerns about the world’s ability to withstand a pause in China’s stunning economic growth.(Link)
Mallya absolved of Rs 7,200 cr irregularities; signs five-year non-compete pact with Diageo; creditors now have reduced options for loan recovery. (Link)
Billionaire investor William Ackman has managed to erase his entire 40 percent return of 2014, a performance that put him at the pinnacle of the hedge fund world.
Ackman’s Pershing Square Holdings portfolio has lost 17.3 percent so far in 2016, the fund told investors on Wednesday. Added to last year, when it lost 20.5 percent in a relatively flat year for markets, the fund’s declines are now greater than its 2014 gain. (Link)
The returns offered by these equity schemes is in line with what bank FDs made for investors.(Link)
The government is planning to auction holdings in cigarette maker ITCBSE -0.07 % and engineering firm Larsen & Toubro (L&T) to make up part of the shortfall in the money it targeted to raise from disinvestment and alleviate the stress on finances.
The sale is expected to raise about Rs 35,000 crore, said two people aware of the plan. (Link)
India’s economy will grow by between 7.0 percent and 7.75 percent in the 2016/17 fiscal year that starts on April 1, the Economic Survey said on Friday, ahead of the presentation of the annual budget by Finance Minister Arun Jaitley on Monday.
India should also review its medium-term fiscal strategy, the government report recommended, an indication of the challenge faces to raise pay for government employees and bail out banks without increasing borrowing. (Link)
How can I add IV Rank & IV Percentile to my think or swim charts? – Link
Liquid Bees – Link
Yes Minister – Link
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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.