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On Slack: 97% Rain, Air India Profits, Coupon and Yield, Edge off Libor, Index Options Market and much more….

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The Slack Discussions

Slack Logo2The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note or login here using your premium credentials.

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

#fx-commodities: Something to Take Edge off Libor Gloom

Libor, which has steadily risen ahead of new money-market rules going into effect on Friday. As much as $6.9 trillion of debt is pegged to this rate, including hundreds of billions of dollars of speculative-grade corporate loans. (Link)

#general: A recession is coming — so hide in gold, says influential investor Raoul Pal

(Link)

#general: Air India Posts Rs. 105 Crore Operating Profit, First Time In 10 Years

Air India has reported an operating profit of Rs. 105 crore in the last fiscal aided by lower fuel costs and rise in passenger numbers. (Link)

#general: IT dept to swoop down on tax evaders in stock market

The income-tax department may soon swoop down on participants in the stock market after a probe revealed that alleged tax evaders are parking money in companies listed on the BSE in order to avoid paying tax and hiding alleged “black” money. (Link)

#macronomics: With 97% rain, India gets ‘normal’ monsoon after 3 years

With India receiving 97 per cent rainfall between June and September, the monsoon was “normal” this year, the India Meteorological Department (IMD) said on Thursday. (Link)

#macronomics: WTO cuts 2016 world trade growth forecast to 1.7 percent, cites wake-up call

The World Trade Organization cut its forecast for global trade growth this year by more than a third on Tuesday, reflecting a slowdown in China and falling levels of imports into the United States. (Link)

#options: Winner Takes It All in the World’s Biggest Index Options Market

India’s index options market, the biggest in the world, is a virtual monopoly.
The National Stock Exchange of India Ltd. has a 99.6 percent share of trading in the derivatives. The 657 million index options contracts traded at NSE this year through August is higher than any other venue and the country’s total outstrips any other nation, according to the World Federation of Exchanges. (Link)

#general: FPIs pull out Rs 6,000-crore from debt markets so far in October

Foreign investors have pulled out nearly Rs 6,000 crore from the Indian debt markets in the first two weeks of this month, after pumping in a staggering amount in September. (Link)

#stocks: Dilip Shanghvi, M&A artist behind India’s best stock, now faces his greatest test

Dilip Shanghvi ‘s deal-making mystique is called into question as Sun Pharmaceuticals faces an array of challenges at home and abroad. (Link)

#general: Sensex at 30: A reflection of a changed India

The Sensex is far more diverse today than it was in 1986, when it was launched. (Link)

#general: What investing in the Indian stock market was like in the early 1990s

(Link)

#general: Govt Eases FDI Rules – Startups Can Now Raise $3 Million Every Year From Overseas Investors & Lenders

Govt. has now allowed every startup to raise $3 million or Rs 20 crore from foreign investors and lenders within a financial year. Technically, this funding can be done as a external commercial borrowings (ECBs) from foreign based investors and lenders, and every startup (both B2B and B2C) can participate in this. (Link)

#stocks: Infosys, TCS numbers reflect everything that is wrong with India’s IT sector

(Link)

#general: Your brilliant Kickstarter idea could be on sale in China before you’ve even finished funding it

(Link)

#fx-commodities: Russia’s Mega India Oil Deal Takes Turf War to Mideast Backyard

A $13 billion deal involving Russia in India threatens to weaken the grip of Middle East crude suppliers in the world’s fastest growing oil market. (Link)

#macronomics: Saudi Bank Stress Builds as Kingdom’s Cash Injection Falls Short

Saudi Arabia has work to do to ease pressure in the kingdom’s banking system.
The interest rate banks charge one another for loans rose by the most since August on Sunday, extending a trend that’s slowing earnings and corporate borrowing in the world’s biggest oil exporter. (Link)

#fx-commodities: China’s Currency Dilemma Deepens as Yuan Surges Versus Peers

As the yuan plumbs new lows against the dollar, China’s currency is still strengthening against peers.
That’s posing a dilemma for the nation’s policy makers as they seek to arrest a plunge in exports and shore up an economy growing at its slowest pace since 1990. (Link)

#bonds: Bank investment in private corporation bonds hits all-time high

With a record increase of Rs 11,746 crore over the preceding quarter, banks’ investments in private corporate bonds and debentures have hit an all-time high of Rs 1.54 lakh crore in the fortnight ended September 30, data released by the Reserve Bank of India (RBI) showed. (Link)

#macronomics: To restore credibility of GDP, inflation and IIP data, Modi government sets up five committees

The government has begun a mammoth exercise to overhaul the system of collecting key statistics on inflation, industrial production, consumption and employment to restore the credibility of official economic data, which took a severe beating after a new series of national accounts was released last year. (Link)

#backtobasics:

The Difference between Coupon and Yield to MaturityLink
Why Bond Prices and Yields Move in Opposite DirectionsLink