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. A brief summary of some of the interesting things discussed there in the last few days:

#general: Rule of Right? Daal-chawal only ideology that matters

(Link)

#general: Government to take call on Raghuram Rajan’s extension in August; Subramanian Swamy’s views won’t impact decision

The government hasn’t yet applied its mind to the matter of extending Raghuram Rajan’s tenure as Reserve Bank of India governor and is only likely to decide on this in August, a month before his three-year term ends, a senior official told ET. (Link)

#general: Real-Life Rally Coincides With Fictional Chinese Merger Target

A three-day surge that drove a Chinese chemical company’s stock up 33 percent to the highest level this year might be a case of life imitating fiction.

Guizhou Red Star Developing Co.’s rally this week prompted regulators to halt trading and left some investors puzzling over what touched off the advance. Could it be that its name closely resembles that of Redstar Group, a fictional acquisition target in the storyline of a popular new Chinese television show? (Link)

#general: Why Satoshi Nakamoto’s identity matters to bitcoin

(Link)

#macronomics: The Fed has come back to life

(Link)

#macronomics: Balance Due: Credit-Card Debt Nears $1 Trillion as Banks Push Plastic

Outstanding balances near precrisis levels as banks promote cards and borrowers regain confidence. (Link)

#stocks: Long-term investors should set stop-losses too

(Link)

#general: Taxman To ‘Name and Shame’ Crorepati’ Defaulters This Fiscal: Report

The Income Tax department, beginning this financial year, has decided to ‘name and shame’ all category of taxpayers who have a default of Rs one crore and above.

The department has begun publishing the names of tax defaulters in leading national dailies since last year and has named 67 such defaulters from across the country till now with their vital details like addresses, contacts, PAN card number and shareholders in case of companies. (Link)

#general: Mercedes-Benz India puts investments on hold due to SC diesel ban

Mercedes-Benz on Wednesday said it has put on hold investments in India due to ban on sale of larger diesel vehicles in Delhi-NCR and the issue has put a question mark on the country’s credibility as an investment destination.

Terming the current uncertain situation surrounding diesel vehicles as a “lost opportunity for India”, the German auto giant said its investments will be affected in the long term if the Supreme Court ban continued. (Link)

#general: Novice Punters Give Stock Tips on WhatsApp to Other Novice Punters and Make a Fortune

(Link)

#macronomics: India is going to be an overwhelmingly domestic story: Paul Gruenwald

Paul Gruenwald, chief Asia-Pacific economist at S&P Global Ratings, says the Narendra Modi government needs to continue with structural reforms. (Link)

#forex-commodities: Saudi Oil Policy Is Set in Stone

(Link)

#general: Baba Ramdev’s Patanjali Ayurved may set up manufacturing facility near Delhi

The company is in discussion with the Yamuna Expressway Industrial Development Authority (YEIDA) to buy a 200-acre plot for around Rs 320 crore, said people in the know. (Link)

#general: India Inc puts up for sale assets worth Rs 2 lakh crore

Indian companies with large debt have set aside assets worth Rs 2 lakh crore to sell and repay their mounting debt.

Cash-rich companies are also playing good Samaritans, helping their stressed peers to come out of the debt pile. Piramal group, Sun Pharma and Ultratech are some of the cash-rich companies that have helped companies to repay their debt to banks. (Link)

#general: India tries afresh to recover $660m from Venezuela

Amid growing international concern over the deteriorating economic and political situation in Venezuela, India on Tuesday began a fresh round of energy diplomacy to look for ways to recover millions of dollars in oil and pharma dues from the Latin American country. (Link)

#general: RBI’s AQR shows banks were hiding nearly half of their NPAs                                       

Rajan had linked the AQR programme to a ‘deep surgery’ that was needed for banks to regain health. (Link)

#macronomics: ‘Run for cover’ if you’re short on markets: Gartman

(Link)

#macronomics: New Home Sales Surge to 24-Year High

New U.S. single-family home sales surged to a more than eight-year high in April and prices hit a record high, offering further evidence of a pick-up in economic growth that could allow the Federal Reserve to raises interest rates soon. (Link)

#general: There’s a Brilliant New Way to Pay Less for Your Flights

(Link)

#macronomics: Raghuram Rajan warns of China slowdown threat to world economy

Raghuram Rajan says there could be serious weak
nesses in the Chinese shadow banking system, which could feed back to banks. (Link)

#general: Government says Apple must sell locally-sourced goods to set up stores

Government has said Apple Inc must meet a rule obliging foreign retailers to sell at least 30 percent locally-sourced goods if it wishes to open stores in the country, a senior government official told Reuters.

Apple is hoping to expand its retail presence in India, one of the world’s fastest-growing smartphone markets, at a time when sales in the United States and China have slowed. (Link)

#stocks: PI Industries makes it a rich harvest for farmers, shareholders

With cutting-edge research and world-class facilities, CEO Mayank Singhal has ensured that PI Industries does not just give high yields to farmers, but to its shareholders too. (Link)

#macronomics: Why Is Raghuram Rajan Toying With A Deceptive Idea Like Islamic Banking?

Islamic banking will create financial ghettoes in the same way the Muslim community is being ghettoised in cities. Rajan’s predecessor didn’t think it was a good idea. Why is Rajan veering towards it? (Link)

#forex-commodities: Oil Just Broke $50 a Barrel for the First Time Since November

Political issues in West Africa and the Middle East, supply outages, and more are pushing up prices.

Brent oil futures climbed above $50 a barrel on Thursday for the first time in nearly seven months, boosted after U.S. government figures showed a sharper-than-expected drawdown in crude stocks last week. (Link)

#general: Flipkart stake marked down 15.5% further by Morgan Stanley

This is the second consecutive markdown by Morgan Stanley, after it had marked it down by 27% in the previous quarter. (Link)

#backtobasics:

Economy unplugged with Raghuram Rajan and Arvind Subramanian – Link

James Dalton on Market Profile – Traders Carnival 2016 – Link

Market Profile – Is it right for you? – Link

Tips to enhance your GMV – Link

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.