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General

On Slack: SEBI Chief Extension, Cancer drug prices, EU referendum, SBI's new ETF, Oyo Rooms Ponzi scheme, RBI leadership, Chinese Dream, The Norway option, Importance of Put Call Ratio and much 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.

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

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#general: SEBI Chief Extension: Govt Wanted ‘Continuity’ Amid Volatility

(Link)

#general: Panama Papers Show How Rich United States Clients Hid Millions Abroad

(Link)

#general: Cancer drug prices highest in U.S. least affordable in India, China: study

Americans pay the highest prices in the world for cancer drugs, but the treatments are least affordable in lower income countries, according to the results of a new study released on Monday.

The study of cancer drug prices in seven countries, which did not take into account discounts or rebates to list prices, was presented at the annual meeting of the American Society of Clinical Oncology in Chicago. (Link)

#general: Indian stocks top in global valuation

India stock indices are among the most expensive in the world. The benchmark BSE Sensex and NSE Nifty are trading at nearly 2.9x their book value, higher than most of the other indices in developed and emerging markets. US S&P 500 is trading at 2.8x while Indonesia benchmark index is trading at 2.3x and Shanghai benchmark index is trading at 1.6x its trailing 12-months underlying book value. Indian indices also offer one of the lowest dividend yields among major world indices. (Link)

#general: Prices of 56 medicines to come down; NPPA fixes ceiling rates

Prices may come down of 56 important medicines used in treatment of cancer, diabetes, bacterial infections and high blood pressure, with the government fixing their ceiling prices under the drug pricing control mechanism. (Link)

#macronomics: EU referendum: Telegraph subscribers say they back a Brexit

More than two-thirds of subscribers to The Daily Telegraph will vote for Britain to leave the European Union, according to a survey.

A survey of nearly 19,000 subscribers found that 69 per cent are intending to back a Brexit at the June 23 referendum. (Link)

#bonds-and-funds: SBI’s new ETF is not for the risk-averse investor

Those with requisite risk appetite could bet on SBI’s 10-year gilt ETF, using either the asset allocation or tactical investment approach. (Link)

#macronomics: When finmin counters RBI data on MSME growth

The agenda paper for the finance minister’s meeting with public sector banks on Monday revealed ‘Credit to manufacturing MSEs (micro & small enterprises) has shown a negative growth’, which is contrary to government claims.

When asked, the minister of state for finance Jayant Sinha described his own Reserve Bank of India-sourced ministry’s data wrong. (Link)

#general: Is Oyo Rooms the startup equivalent of a Ponzi scheme – Part 2

(Link)

@StoicTrader

Market Review

#general: Amazon Targets India Growth With $3 Billion Investment Boost

Amazon.com Inc. will invest $3 billion more to build its business in India, stepping up its bet that the country will become a major online-shopping market that will fuel sales growth.

The latest commitment, unveiled by Chief Executive Officer Jeff Bezos at the U.S.-India Business Council’s Leadership Summit in Washington, more than doubles Amazon’s total pledged investment since 2014 to $5 billion. (Link)

#general: Some investors say ‘don’t panic’ over RBI leadership

The reappointment, or not, of Reserve Bank of India (RBI) head Raghuram Rajan has caused enough of a stir to be known locally as “Rexit”, a play on Britain’s EU referendum, reflecting the esteem in which the governor is held at home and abroad.

Were Rajan to leave when his tenure ends in September, Indian markets are expected to fall to reflect his standing, but some foreign fund managers are of the view that, even if he does go, it would not be the end of the world. (Link)

#fx-commodities: Chinese Dream of Instant Stock-Market Riches Faces Harsh Reality

Fang Tao’s hopes of striking it rich in the Chinese stock market died as his investments plunged by half over the past year. Now, he’ll be happy just breaking even.

The 28-year-old employee of a clothing company in Shanghai has pared his allocation to equities by as much as 15 percent since Chinese shares peaked last June. He sees no sign of the Shanghai Composite Index returning to its highs anytime soon, despite efforts by the ruling Communist Party to prop up the market. (Link)

#fx-commodities: Lured by hopes of easy money, amateur Chinese commodity traders lose their shirts

Chasing the promise of outsized returns, 48-year-old businessman He Xiaolun started trading oil last August on a platform developed by the Shaanxi Non-ferrous Metal Exchange. (Link)

#stocks-fundamentals: Axis Bank’s Watchlist – Guardrails or Illusion?

The term “watch list” is a bit misleading, giving the impression that the loans on the list may eventually turn out be healthy. But Axis Bank stated 60% of the watch list will become non-performing assets. (Link)

#macronomics: The Norway option: what is it and what does it mean for Britain?

(Link)

#general: Saudi Prince Said Seeking Sale of Four Seasons Toronto

Saudi Prince Alwaleed bin Talal Al Saud is seeking to sell Toronto’s landmark Four Seasons hotel for almost C$1 million ($780,000) a room in what would be the highest price for a hotel in Canada, according to people familiar with the matter. (Link)

#macronomics: Tories favorite pollster predicts Britain
will vote for Brexit

The Tories favorite pollster has predicted Britain will vote to leave the European Union.

Lord Hayward, one of the few election experts who predicted a Conservative majority at the general election, has said that unless something “substantial” changes, the “balance of probability” is that the nation will vote to Leave. (Link)

#backtobasics:

Inside the Asset Purchase ProgrammeLink

The Importance of Put Call Ratio for TradersLink 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.