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On Slack: Drought Bites, Brexit Stress, P-notes norms, Delhi Power Woes, Patanjali Empire, Faux Doomsday Call, New Stock Exchange, Stressed Assets, FCNR redemption, Brexit Watch Indicators and much more…


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:Slack Logo

#general: Government plans 25% tax on sugar exports as drought bites

India plans to introduce a 25% tax on sugar exports to maintain local supplies, the government said on Thursday, a move that could further push up global prices of the sweetener and boost shipments from Thailand.

Sugar output in India, the World’s no. 2 producer behind Brazil, is expected to decline this year due to a drought in major growing regions, while global prices have risen to two-and-a-half year highs. (Link)

#general: First Global’s Shankar Sharma: I am not a bear

In a freewheeling conversation, veteran investor Shankar Sharma of First Global talked to CNBC-TV18’s Anuj Singhal for the show Unplugged. Excerpts from the interview. (Link)

#macronomics: Russian central bank cuts rates, says economic recovery ‘imminent’

Russia’s central bank cut its main lending rate on Friday for the first time in almost a year, signalling confidence that inflation risks are declining and describing an economic recovery as “imminent”.

The rate cut comes at a time when Russia’s economy, plagued in the past few years by plunging oil prices and Western sanctions over the Ukraine crisis, is now showing signs that the worst is behind it. (Link)

#macronomics: Europe Stocks Could Plunge 24% in Brexit, Stress Study Shows

European equities could lose about a quarter of their value in the immediate aftermath of a U.K. secession from the European Union, a study testing the effects of Brexit showed. (Link)

#general: Sebi announces stricter norms on P-notes, effective July 1

The Securities and Exchange Board of India (Sebi) has tightened its know-your-client (KYC) and disclosure rules on issue of participatory notes (P-notes), to curb misuse of the investment route used by foreign investors not registered in India. these take effect from from July 1. (Link)

#macronomics: EU Referendum: Massive swing to Brexit – with just 12 days to go

Polling carried out for ‘The Independent’ shows that 55 per cent of UK voters intend to vote for Britain to leave the EU in the 23 June referendum. (Link)

#stocks-fundamentals: Aviation ministry announces slew of measures for flyers

The Modi government has ringed in some acche din for fliers by reining in runaway flight cancellation charges. Among the slew of flier-friendly measures announced on Saturday, the aviation ministry said cancellation fees cannot exceed base fares. In effect, that means everything collected above that fare should be returned to the customer. (Link)

#stocks-fundamentals: Delhi Power Woes: Anil Ambani’s Firms May Soon Owe NTPC Rs 880 Cr

After missed payments, threats and a compromise, Anil Ambani’s power distribution companies in Delhi will still owe state-run NTPC over Rs 880 crore by September. (Link)

#general: Inside Baba Ramdev’s Patanjali empire

Baba Ramdev is parlaying his popularity as a yoga guru to build a Consumer Products Empire that’s up against global giants like Unilever and Colgate. (Link)

#bonds-and-funds-from the past: How to make investments after retirement

(Link) (Link)

#general: Wanted: Oil traders who know China, with good heads for liquor

Chinese independent oil companies are luring traders, marketers and risk managers away from dominant state behemoths, offering better pay and perks in a hiring spree triggered by the freeing up of China’s crude import trade.

Global oil firms and commodity houses have also been raiding state giants such as Sinochem and CNPC for staff to help handle up to $50 million a day in new crude flowing into China this year, and the cherry-picking of talent is likely just getting started. (Link)

#macronomics: Brexit vote is about the supremacy of Parliament and nothing else: Why I am voting to leave the EU


#general: Novice Investors Fume at Loss of Mega Bucks Due To Faux Doomsday Call by Saurabh Mukherjea’s Ambit Capital


#general: Why the Chidambaram Economic Slowdown Is Difficult to Reverse

Palaniappan Chidambaram, who left the Indian economy tottering when his UPA government was voted out of power in 2014, now believes that the 7.6 percent GDP figure for 2015-16 put out by the Central Statistics Office (CSO) is questionable. In a recent column in The Indian Express, he wrote:

Ever since the CSO moved to the new method of calculation, there has been growing scepticism. Analysts have pointed to several aspects of the new methodology that are suspect.(Link)

#general: Silicon Valley’s Audacious Plan to Create a New Stock Exchange

The author of “The Lean Startup” and his team are in early talks with the Securities and Exchange Commission. (Link)

#general: Microsoft to buy LinkedIn for $26.2 billion: 5 facts about the deal

Microsoft is all set to acquire LinkedIn for a whopping $26.2 billion, in an all-cash transaction. This is one of the biggest deals in the tech world. (Link) (Link)

#stocks-fundamentals: SBI, ICICI Bank and Axis Bank have more stressed assets than they have disclosed


#general: Tackling bad loans: Banks can now take equity in debt-laden companies

The Reserve Bank of India has thrown a lifeline for over leveraged companies and banks to put an end to future bad loans by permitting capital restructuring which would see banks taking equity in companies. But the plan comes with a lot of riders that limit scope for promoters gaming the system, and banks don’t sweep doubtful loans under the carpet. (Link)

#general: Reservation for Small Investors

Markets regulator Securities and Exchange Board of India has modified norms for buy-back of shares through the tender offer route, making it mandatory to reserve 15 per cent of the offer for retail investors with holdings up to Rs 2 lakh in the company. (Link)

#general: The Boss – Anand Mahindra

The Mahindra & Mahindra chairman is a self-effacing tycoon who lets his A-team have the final say. (Link)

#fx-commodities: Forget currency, FCNR redemption will test the equity markets the most

Past trends show that a weak rupee leads to outsize drops in the equity markets. (Link)

#macronomics: Cost Inflation Index, Indexation and Long Term Capital Gains


#macronomics: Brexit Watch Indicators

(Link) (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.


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