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On Slack: Automation Eating Jobs, e-KYC Mutual Funds, Mediclaim Maladies, Muscular Portfolio, Wrecking Capital Markets 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:

#macronomics: Bonds Fluctuate as India Rate Cut Reduces Scope for More Easing

India’s 10-year bonds swung between gains and losses after a monetary policy panel lowered benchmark interest rates, while saying that risks to inflation are tilted to the upside. (Link)

#macronomics: Urjit Patel takes a u-turn as Guv; 4% inflation target on paper?

For someone who was looking for inflation everywhere just a few months ago, to cut interest rate when surveys point to inflation expectations rising 180 basis points to 11.4 percent in a matter of months, is nothing short of a dramatic U-turn. (Link) (Link)

#general: Mediclaim malfunction maladies

Differential pricing is the way any industry with high fixed costs behaves; but that does not seem fair in health care. (Link)

#stocks: Kumar Mangalam Birla plans to reorganise his telecom infrastructure and towers business

After Grasim and Aditya Birla Nuvo, Kumar Mangalam Birla is planning to reorganise his telecom infrastructure and towers business with an aim to simplify the holding structure by consolidating its scattered tower holdings into a single entity and unlock value. (Link)

#macronomics: UK announces crackdown on immigration, decision to hit Indians

The UK today unveiled plans to further its crackdown on immigration through “work and study routes” from non-EU nations, in a move expected to make it difficult for British firms to hire professionals from countries like India. (Link)

#macronomics: Why Are Politicians So Obsessed With Manufacturing?

(Link)

#general: Automation is going to eat up jobs in India and tech advancement is not going to spare China as well

As per a World Bank research, automation is going to take away 69% of the jobs in India. Even China will feel the heat as automation will eat up 77% jobs in the country. (Link)

#macronomics: Govt plans overhaul of tax administration for smooth GST rollout

The government has readied plans for a major change in India’s tax administration structure, including overhauling the Central Board of Excise and Customs (CBEC) to ensure a glitch-free roll-out of a nation-wide goods and services tax (GST). (Link)

#general: Flipkart records highest-ever single day sale, grosses $200mn

This is the biggest ever single day sale for Bangalore-based Flipkart, since the time the company started in 2007. (Link)

#general: Coming Soon to Chinese Movie Theaters: Mergers and Acquisitions

China’s torrid box-office growth might be cooling off this year, but another trend could be warming up. (Link)

#general: Bill Gross: Central Banks Are Wrecking Capital Markets

Central-bank policies are wrecking the capital markets, but rather than drawing back and letting the markets find their own equilibrium, the bankers are doubling down, Janus Capital’s Bill Gross said in his latest investment missive, comparing central bankers to impenitent gamblers who won’t stop doubling down, on the mistaken assumption that eventually they will win a hand big enough to recoup all their losses. (Link)

#general: The most overlooked trading skill and what is takes to turn your trading around

Why is it that traders tend to repeat the same mistakes and apply incorrect trading behavior over and over again? Some traders are stuck in the same loop of losing money consistently and making absolute beginner mistakes, even after years. (Link)

#general: Loan against property to see more stress: India Ratings

Stagnant property prices is set to add stress to section property loans. Early signs of loan against property (LAP) portfolio of NBFCs could turn bad in the next four quarters are visible. They may even exceed 5% according to ratings firm India Ratings and Research (Ind-Ra). (Link)

#general: Fitch warns about rising loans against property

Loan against properties might be the next stress area for lenders with delinquencies rising in tandem with stagnant home prices. India Ratings has warned that defaults could hit 5% of the portfolio. (Link)

#stocks: Sebi’s initial probe finds Yes Bank violated norms

The Sebi has found reason enough to launch adjudication proceedings against Yes Bank over its abortive $1 billion qualified institutional placement. (Link)

#stocks: Jindal defaults on interest repayments to its bonds holders due in September 2016

Jindal Steel & Power Ltd (JSPL) Jindal Steel & Power has defaulted on interest repayments to its bonds holders, who did not receive any interest income falling due in September 30, 2016. Those non-convertible debentures (NCDs) had a coupon rate of 9.8 per cent with about two-10 year maturities with banks, provident funds believed to be the investors. Axis Trustee Services was the trustee. (Link)

#general: Elliott Wave Outlook of Nifty for 05 Oct 2016 Onward

(Link)

#bonds: Balanced fund inflows: performance and incentives

Commissions and dividends aside, long-term performance and tax efficiency work favourably for balanced funds. (Link)

#general: Mint classroom: How to do your eKYC for mutual funds

Electronic or eKYC is now available and can be completed either on your fund house’s website or through a registrar and transfer agent. (Link)

#general: America’s ‘quiet catastrophe’: Millions of idle men

(Link)

#general: Spectrum Auction Disappoints, Short Of Target By Nearly Rs. 5 Lakh Crore

Altogether, a total of 2,354.55 megahertz of mobile airwaves frequencies were up for auction for the 700 MHz, 800 MHz, 900 MHz, 1800 MHz, 2100 MHz, 2300 MHz and 2500 MHz bands. (Link)

#general: Government considering ban on celebrities for misleading ads

Union Minister Ram Vilas Paswan who made the announcement, however, remained non-committal on a Parliamentary panel recommendation for a jail term to celebrities found guilty. (Link)

#fx-commodities: Flash Crash of the Pound Baffles Traders With Algorithms Being Blamed

The pound plunged as much as 6.1 percent against the dollar, the biggest decline since the day the U.K.’s Brexit referendum result was announced, in a move that traders said was exacerbated by computer-initiated sell orders. (Link)

#general: Finance ministry doubts efficacy of a ‘bad bank’

A key official argued that constitution of a new institution to deal with stressed assets would only delay the resolution of bad loans. (Link)

#backtobasics:

Building A Muscular PortfolioLink
Quantitative Momentum: A Guide To Momentum-Based Stock SelectionLink
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