infineeti newsletter august week 3

7/29/2019 InFINeeti Newsletter August Week 3

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FinancialfocusWeekly Newsletter

InFINeeti

ISSUE 8 2013 VOLUME 2

TOP STORIES.........1MARKET ACTIVTY .....2

ECONOMICS ....... ... 3

TERM OF THE WEEK .4

A o n e s t o p g u i d e t o k n ow a b o u t a l l t h er e c e n t h a p p e n i n g s i n t h e f i n a n c e wo r l dTOP STORIES : INDIA

SENSEX TANKS 1000 POINTS IN 2 DAYS AS RUPEE

NEARS 63/$

The BSE Sensex dropped over 450 points in intraday trade on Monday in a repeat

of Friday's trade as the rupee hit another record low. The broader Nifty slipped be-low the key 5,400 levels for the first time since September, 2012. The sharp fall in the rupee - the worst performing currency in Asia- was the biggestcause of worry and the single biggest reason for the sharp drop in stock markets,

analysts said.

Financial

focus

WPI INFLATION ACCELERATES TO 5.79% IN JULYIndia's headline inflation accelerated to 5.79 percent in July, the fastest pace in fivemonths, mainly driven by higher food prices and costlier imports as the rupee fellto a record low, government data showed on Wednesday. The inflation in the food

articles category rose for the third straight month. Inflation in onion shot up by 145per cent in July on an annual basis. It has risen by 114 per cent in the previousmonth as against the same period last year. Vegetables prices too went up by 46.59

per cent during the month, from 16.47 per cent in June.

RECENT RBI MOVES DON'T AMOUNT TO CAPITAL

CONTROLS

Despite outflows spooking markets, Finance Ministry reiterated that recent RBIsteps were not for capital control & such steps would be unlikely. Around fourweeks back the government, public policy made its priority known that defending

the economy or trying to defend the rupee to a certain extent and managing its free-fall was a clear-cut important strategy. Now indications apart from the politics of itare that is not something that will be done endlessly. There is also a sense of

acknowledgement that certain measures are temporary and can be rolled back.
http://sunnewsonline.net/indianews/news/sensex-tanks-1000-points-in-2-days-as-rupee-nears-63http://sunnewsonline.net/indianews/news/sensex-tanks-1000-points-in-2-days-as-rupee-nears-63http://sunnewsonline.net/indianews/news/sensex-tanks-1000-points-in-2-days-as-rupee-nears-63http://www.moneycontrol.com/news/economy/wpi-inflation-accelerates-to-579july_935102.html#toptaghttp://www.moneycontrol.com/news/economy/wpi-inflation-accelerates-to-579july_935102.html#toptaghttp://www.moneycontrol.com/news/cnbc-tv18-comments/recent-rbi-moves-don39t-amount-to-capital-control-sources_936380.html#toptaghttp://www.moneycontrol.com/news/cnbc-tv18-comments/recent-rbi-moves-don39t-amount-to-capital-control-sources_936380.html#toptaghttp://www.moneycontrol.com/news/cnbc-tv18-comments/recent-rbi-moves-don39t-amount-to-capital-control-sources_936380.html#toptaghttp://www.moneycontrol.com/news/cnbc-tv18-comments/recent-rbi-moves-don39t-amount-to-capital-control-sources_936380.html#toptaghttp://www.moneycontrol.com/news/cnbc-tv18-comments/recent-rbi-moves-don39t-amount-to-capital-control-sources_936380.html#toptaghttp://www.moneycontrol.com/news/economy/wpi-inflation-accelerates-to-579july_935102.html#toptaghttp://sunnewsonline.net/indianews/news/sensex-tanks-1000-points-in-2-days-as-rupee-nears-63http://sunnewsonline.net/indianews/news/sensex-tanks-1000-points-in-2-days-as-rupee-nears-63


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CHINA, JAPAN ADVANCE AMID MIXED ASIAN-PACIFICMARKETS

Asian-Pacific markets posted mixed results

Monday

on the heels of disappointing

results from Wall Street and rising fixed-income yields in the U.S. Japan's Nikkei 225rose 0.8%. Hong Kong's Hang Seng Index slid 0.2%. Australia's S&P/ASX 200 wasflat. China's Shanghai Composite gained 0.8%. South Korea's Kospi gave up 0.1%.

India's Sensex was down 1.9%.

NSEL UNVEILS SETTLEMENT PLAN FOR 30 WEEKS

NSEL submits plan pay out spread for 30 weeks in which it plans to pay Rs 174.72cr. every week for 20 weeks. After that NSEL will pay Rs 86.02 cr. for the next 10weeks. Pay-In to be every Friday and Pay-Out to be everyTuesday. Some membersto settle via stock sale of Rs 1,219.7 cr. NSEL says it will settle `5,574 Cr pay -out

FromAug 20 To Mar 11, 2014. Nirmal Jain, MD, IIFL, believes Govt should take

over NSEL management as investors won't be satisfied by the payment plan as thetotal don't add up to the Rs 5,600 cr. NSEL is supposed to pay

TOP STORIES : WORLD

EUROZONE BACK IN GROWTH MODE, BARELYThe Eurozone officially returned to growth in the second quarter, with a 0.3% rise ingross domestic product. But economists warn that the still-slow progress offers littleto cheer about, noting that it may even slacken efforts to address long-standing prob-lems with the single currency. "The big problem is the damage being done to thelegitimacy of governments, to the productive capacity of Europe through forgoneinvestment, and to the supply of labor" through prolonged unemployment, particular-ly among the young, said Adam Posen, president of the Peterson Institutefor Interna-

tional Economics in Washington

RUSSIA'S GAZPROM POSTS PROFIT DECLINE FOR 2013'S

FIRST HALFRussian state-run natural gas company Gazprom says net profit fell 35%, to $7.5billion, in the first half of this year compared with the same period in 2012. The de-cline came despite increased sales to Germany, Italy and the U.K. Analysts attributethe drop to a 40% decrease in sales to Ukraine, extraction taxation and currency fluc-

tuation

U.K. RETAIL SALES POST STRONGEST QUARTERLY GAIN

SINCE 2004

U.K. retail-sales volume rose 1.8% in the three months through July, the highestgrowth since March 2004, according to the Office for National Statistics. The dataadd to a lengthening list of positive reports on the U.K. economy. In the three

months through July on a year earlier, sales volumes were up 2.2%, the fastestgrowth rate since March 2008.Food stores led the way higher in July from June.Predominantly food store sales were up 2.5% on the month, while non -food store

sales fell 0.3% on the month.

MARKET ACTIVITY
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ECONOMICS

BOFA WILL ABSORB MERRILL LYNCH INTO CORPO-

RATE STRUCTUREBank of America said in a regulatory filing that it will dissolve 99 -year-oldMerrill Lynch and absorb its debt and obligations. Merrill Lynch could ceaseto exist as an independent entity as soon as the fourth quarter, the bank said.BofA plans to continue to use the Merrill Lynch name, however, for its retail

brokerage and investment bank.

U.S. SUES TO STOP AMERICAN AIRLINES-US AIR-

WAYS MERGERThe Justice Department has sued in U.S. District Court to block a proposed

merger of American Airlines and US Airways, a combination that wouldcreate the world's biggest airline. The merger would give four carriers con-trol of more than 80% of commercial air travel in the U.S. "It looks prettybad for consumers," said William Baer, assistant attorney general in charge

of the Justice Department's antitrust division.

ANALYSIS: U.S. IS EXPECTED TO DRIVE WORLD RE-

COVERY

While the world economy is picking up momentum, the U.S. recovery, formyriad reasons, is likely to be stronger and more sustainable, according toThe Economist. "Which leaves the United States as the likely engine of

global growth," the magazine says. "That is not, by itself, a bad thing."

DID YOU KNOW?

Kotak Mahindra Bank was once an NBFC!!Kotak Group started as an NBFC (Kotak Mahindra Finance Ltd.) in

1985. It went on to become the frst Indian NBFC to be granted a

banking license.It got converted to Kotak Mahindra Bank Ltd. in 2003. It is only

now that more NBFCs will be granted a banking license under the

new RBI direcve.

RUPEE CROSSES 63/$, MARKS BIGGEST SINGLE DAYFALL IN 10 YRS

The rupee on Monday breached the 63 level to end at 63.13 against the US

dollar. Yields on the 10-year benchmark bond hit a five

-year high of 9.24

percent. Yields are inversely proportional to prices, i.e. bond prices crashed due

to rupee free fall. Data byCNBC-TV18shows, the rupee marked its biggest

single day fall in the last 10 years by plunging 2.8 percent in the last two trad-

ing sessions.
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InFINeeti

Source : FLIP


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InFINeeti

Avneet Bhulania and Bhushan Kanathe are 2nd year students of IIFT (Kolkata campus)

Disclaimer : InFINeeti and IIFT do not take any responsibility regarding the authenticity of above calls. Please consult your financialadvisor before taking any investment decisions

Stock Name Call Target PriceCipla Buy 425

TARGETHIT

Apollo Tyres Buy 65

Gujarat Gas

Co LtdBuy 203

STCI Buy 126

Last Weeks Stock Calls that hittheir target levels

InFINeeti Team

Aakanksha Hajela | Bhushan Kanathe| Kunal Maheshwari| Vaibhav Garg| Md. Umair Ansari

infineeti newsletter august week 3

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