- 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. A brief summary of some of the interesting things discussed there in the last few days:
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)
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)
Outstanding balances near precrisis levels as banks promote cards and borrowers regain confidence. (Link)
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)
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)
Paul Gruenwald, chief Asia-Pacific economist at S&P Global Ratings, says the Narendra Modi government needs to continue with structural reforms. (Link)
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)
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)
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)
Rajan had linked the AQR programme to a ‘deep surgery’ that was needed for banks to regain health. (Link)
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)
Raghuram Rajan says there could be serious weak
nesses in the Chinese shadow banking system, which could feed back to banks. (Link)
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)
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)
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)
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)
This is the second consecutive markdown by Morgan Stanley, after it had marked it down by 27% in the previous quarter. (Link)
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
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.