SEPTEMBER, 21 | 2014 | A FINNICHE INITIATIVE

Buck the Trend | 6

iPhone 6 : Is Bigger

the Better? |12

Sundar Pichai |11

Who is the Mighty

Conqueror | 4

India-China

Collaboration | 2

The Finance Club of

IMT Ghaziabad is en-

gaged in a continuous

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exposure to the world

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India China Collaboration

Who is the Mighty

Conqueror

Buck the Trend

Sundar Pichai

iPhone 6: Is bigger the

better?

September, 21 | 2014 | Volume 13

With the whole campus engulfed in a sports frenzy, people digging out their rackets, balls

and practicing day in and day out to achieve victory, we bring to you another edition of our

weekly magazine FinXpress.

We welcome the LSIP students of Senior Batch. This week, the In Focus section talks about

‘India China Collaboration’. The Opinion answers the question, ‘Who is the Mighty

Conqueror’ which is about effects of stable government on the Indian economy.

The term of the week describes “Buck The Trend" - market driven price moves in the

direction opposite to the broad market and competition. Do have a look at the market

section, news and Tech World which brings to you iPhone 6: The Bigger the Better.

Club FinNiche welcomes any comments, suggestions or criticism regarding the magazine.

Please do write to us and share your ideas.

Happy Reading!

Regards

The Editorial Team

Club FinNiche

Disclaimer: FinXpress takes no responsibility for the opinions expressed in the magazine.

Chinese President, Xi Jinping recently

visited India with his wife Peng Liyuan and met

Indian Prime Minister, Narendra Modi to discuss

various Bilateral issues. He received a

ceremonial reception at the Rashtrapati

Bhawan. He also had a grand welcome at

Modi’s own city Ahmedabad. Xi appeared to be

a lot friendlier and open-minded than his

predecessor, Hu Jintao who had an image of

never ever speaking to a child in public.

Chinese president has agreed to resolve the

border dispute with India at the earliest to bring

peace among the two countries. Since the

border is not demarcated, Xi said, there should

be some collaboration between two countries to

effectively manage through border-related

mechanisms so that they do not have a large

impact on bilateral relations. The latest incident

$20 Billion to be invested by

Chinese government into Indi-

an market over next 5 years.

Strategic partners to address

the issue of soaring trade defi-

cit

India was referring to was the fresh incursion of

Chinese army in the Chumar area even as the

talks were on.

Xi pledged to invest $20 billion into Indian

economy in the next 5 years in various

infrastructure and manufacturing projects. 12

agreements were signed for setting up industrial

parks in country and speeding up of the existing

railway network. 24 MOUs worth $3.4 billion

were signed. Both countries pledged to improve

cultural ties. China will also help in developing

India’s rusty rail network. They will help in

increasing speed of the existing railway line

from Chennai to Mysore via Bangalore. For this

Chinese side will provide training to 100 Indian

railway officials. The other proposal is that the

two sides will work together for redevelopment

of existing railway stations and setting up of a

new railway university. A wide range of topics

were discussed in the one-on-one meeting of

Indian Prime Minister and Chinese President as

they agreed to “deepen their relationship”.

Ever increasing India-China trade deficit against

India has been a major concern. The issue of

soaring trade deficit was highlighted in strongest

terms. Prime minister sought approval of

various Indian products and services for exports

as well as easy investment opportunities for

Indian businesses. An agreement was signed

- By Abhilasha Shukla

Development of agriculture,

infrastructure and railway sec-

tor.

2005 pact to be used as guide-

line to address the issue of

border dispute

between Indian Commerce & Industry Minister,

Nirmala Sitharaman and her Chinese

counterpart, Gao Hucheng to address the

problem of trade deficit by enhancing Indian

agriculture and pharmaceuticals products

besides services. On the same lines, India

asked for export approval of 5 Indian vegetables

and fruits including Mango, which is granted by

China. In last 10 years China has invested just

$400 Million in India which is to increase to

about $20 billion in the next five years excluding

the increase in bilateral trades.

India and China have agreed to solve their long

standing border dispute by the Parameters and

Guiding Principle for the Settlement of the

Boundary Questions, a pact that two

governments signed in April 2005. Both sides

will also hold talks on civil nuclear agreement in

order to expand their civil nuclear energy. The

follow up of this 2005 act would be in the

strategic and reasonable interest of both the

parties. This would safeguard the interest of

population in the border areas. Both sides

committed to the early settlement of border

dispute.

The pact said that regular visits by defense

ministries and defense leaders of both the

countries will take place in future.

Both countries will look into various economic

areas to solve the problem of rising trade deficit

of India. These areas include industrial sector,

infrastructure sector, railway development,

energy conservation, environment protection,

sustainable development and many more. India

and China will enter into joint venture to

promote building of smart cities. In this regard,

Finance Ministry’s department of Economic

affairs and China’s development Research

Center of State council will collaborate to make

sure that the desired results are met.

Relations of India and China, two major

economies of the world, have taken a new turn

in this optimistic global environment and there is

hope to receive positive results in future.

adverse manner.

But why has this epic run occurred? Was it

because of the NaMo effect? Well, experts

draft a view on NaMo being the prime mover

but the underlying facts speak much more

about the supplements as well. The effect

was adverse but it was well supplemented by

the promising youth of the nation and the

industries who were geared up to perform.

The industrial growth was registered

immediately along with policy reforms that

were pitched in. The financials started an

uptrend and so did the talks. There were

heavy amounts of cash inflows in the

economy where individuals started to utilize

the opportunity.

Who gained the most?

The short term investors who believed in the

bull run have multiplied their money. Here

short term is referred to as the 3-6 months

players. There are other absorbents as well.

They are the intraday traders, the Mighty

Conquerors indeed.

Intraday Traders

The clever traders who anticipate and read

the lines of newspaper gained in the short

term. But the smart intraday traders who

have the ability to read between the lines

have gained even more.

A few months back there were two animals be-

ing spoken about, “The Bull” and “The Bear”.

But nowadays it’s “The Bulls” all around. Where

has “The Bear” gone? Has he gone into his

sleep hours after consuming a lot? Is he waiting

to search for the right prey at the right time?

Speculations are many, but the answers are

few.

The markets have performed their wit out with

the crunching figures and munching times for

the traders. The growth in the index which was

recorded to as high as 28% has shown the way

they are going to progress forward. The forward

troll has led the world with an example. The well

waited run has demolished the losses incurred

for several years. New infrastructures have

changed the priorities. And indeed all these

have given an impact on the bullish run in an

The growth Indian economy

has observed ever since the

stable government being

formed for decision making

process.

- by Aditya Sai Daga

The criterion of early sell with-

out any stock in-hand when

anticipating a fall.

Index that is to be tracked on

NSE India or BSE India web-

sites to know the industry per-

formance and the peers.

Where is it leading?

The intraday players have capitalized on the

adverse situation and realized that it was the

right time for them to cover the losses they

have incurred due to the regular fall. They

have conquered the epitome of economic

development - the automobile and the

pharmaceutical sectors. The Financial

Services and Banking have performed well for

the past six months but their intraday

movements do leave a speculation in the

minds of players who doubt the movement as

there has been a sentiment of global economy

affecting the stock prices. The recent Fed talks

speculated the US Markets which in process

had shown effects on Indian Markets as well.

Well here comes the last query of the opinion.

When will the Indian Markets be able to drive

the other foreign markets on regular basis?

The answer lies on where we started, the

NaMo and the youth. Although the Indian

economy is an integration of Individual,

Government, Corporates and Imports-

Exports, yet the effect of the second sector is

prevalent and dominant. Well if this is our

strength then lets enhance it. But let us not

leave the other two drivers as well alone. The

integration channel would be channelized

only when the three sectors work for the

individual’s development and in integration,

the individual contributes his services for the

remaining three.

If you feel that you cannot directly make the

big amounts from the conventional cubical,

then there is another way which may be

capitalized on to explore and earn some

money at the right time. It’s more of your

logic and common sense which takes the

common man ahead and earn some good

money. Indeed he would develop and there

after the NaMo effect may also be boasted

about.

Hence, you are the Mighty Conqueror. It’s all

dependent on you. Where you fit yourself? If

you fit yourself right in the right place and at

the right time then it’s all hail if not it is all in

vain. Let the instincts work more and

sharpen them till you train yourself and

search for the right choice where you fit into

not where someone else would like you to.

As the name suggests, going against the

prevailing trend or norm is called buck the

trend. In simple words, buck the trend is to

have a noticeably different opinion, against

the grain, to be an exception

from the way that a situation is developing .

For example, spending is down this season,

but the tourist industry is managing to buck

the trend and book the tickets to visit places.

Further, financial industry - in a trending

market scenario, or even in a Flat Market - if

stocks or assets move against the current

trend, it is an example of buck the trend.

Thus, a stock moving downward in a bull

market is bucking the trend.

In connection with financial matters, buck the

trend describes an individual or company’s

actions, which means whether an investor is

outperforming in a poor securities market or

if a company’s stock is doing better than the

status-quo. In most cases, the term applies

when an overall market is moving upward or

a group of securities are in constant rise or

vice-versa. An individual can buck the trend

by investing in stocks doing well despite the

prevailing cycle. Those who can make

money in down markets are often regarded

as valuable investors.

Investor uses a stock’s chart history to define

future movements in price. Individuals use

charts to buck the trend for investor stocks.

Another example, a stock’s price may be

increasing simply because the rich market is

pulling the price up due to decreased stock

sales. Investors who give up on a trend in

the chart may go short in hopes of a future

stock price fall; this is known as being

bearish.

In bearish market the investors who have

invested in rising stocks make profit and

buck the trend. Whereas, in the current

scenario when the market is bullish, the

individuals who have invested in stocks

moving down, buck the trend making loss.

When market-driven price

move in the opposite direction

of the broad market .

Investors are attracted to the

stock despite negativity

surrounding its competitors

and peers.

- By Shikha Sharma

INDIAN MARKETS

The week started with Sensex reaching 26998.07 points and Nifty reaching 8070.35. The market

reached its biggest single day gains in more than 3 months, mainly buoyed by the US Fed

decision of not cutting down its interest rates. The upsurge in market is also stimulated by the

optimism over India and China trade ties, though China dashed the $100-bn dollar hope to

$20-bn for 5 years. With the increase in strategic ties, analysts hope that India will be at a better

position to bear the shocks emanating from US federal interest rate rise.

BSE SENSEX

CNX NIFTY

Market turns defensive on Fed

scare, BJP debacle

BSE expects to list 100

companies on its SME platform

by Dec-end.

Crude falls on supply

concerns, US dollar’s advance.

Open High Low Close

SENSEX 26998.07 27223.59 26477.57 27106.00

NIFTY 8070.35 8155.25 7927.80 8121.45

Global shares flat, though

Alibaba rallies in debut.

Market shows relief on “NO”

vote in Scotland.

India’s forex reserves down

USD 1.61 bn to USD 315.69

bn.

COMMODITIES

EXCHANGE RATES

INTERNATIONAL MARKETS

Open High Low Close

NYSE Comp 10890.73 11044.72 10890.73 10986.28

NASDAQ 4530.56 4608.13 4508.60 4573.64

S&P 500 1983.40 2017.90 1979.90 2010.20

FTSE 100 6776.80 6875.80 6750.30 6837.92

CAC 40 4423.50 4488.50 4396.00 4461.22

DAX 9630.80 9889.50 9599.50 9799.26

NIKKEI 225 15909.50 16359.50 15869.50 16321.17

SSE 50 2331.95 2646.66 2284.54 2329.45

Hang Seng 24431.00 24469.00 24109.48 24306.16

Commodity Unit Rs / Unit % Change

Gold 10 grams 26520.00 -0.52

Silver 1 kg 39771.00 -2.95

Crude Oil 1 bbl 5605.00 -0.62

INR/ 1 USD 60.82

INR /1 EURO 78.10

INR/ 100 JAPAN YEN 56.00

INR / 1 POUND STERLING 99.27

Alibaba IPO prices at top of range, raising $21.8 billion

Alibaba Group Holding priced its initial public offering at $68 a share, the top end of the expected

range, raising $21.8 billion on Thursday, in the latest sign of strong investor appetite for the

Chinese e-commerce juggernaut. At that price, the IPO, one of the largest-ever, would give

Alibaba a market valuation of $167.6 billion, surpassing American corporate icons from Walt

Disney Co to Boeing Co. The offering also vaults it atop U.S. e-commerce rivals like Amazon and

eBay and gives it more financial firepower to expand in the United States and other markets.

UCO Bank examines ways to declare Kingfisher Airlines wilful defaulter

State-run lender UCO Bank is examining its options on how to declare Kingfisher Airlines a wilful

defaulter, chairman and managing director Arun Kaul said on Friday. "We are examining the

possibility," Kaul said on the side-lines of an event organised by the Confederation of Indian

Industry (CII) in Kolkata. UCO Bank, which has an exposure of about Rs. 300 crore to the airline,

is one of 17 lenders to whom Kingfisher Airlines owes money. The now-grounded airline

borrowed over Rs 6,500 crore from various lenders. UBI has already declared Kingfisher Airlines

a wilful defaulter while SBI has sent it a show-cause notice asking why it should not be named a

wilful defaulter. The airline company has contested the moves.

Nepal Clears GMR Plan for $1.4 Billion Hydroelectric Plant

Nepal's cabinet on Thursday cleared the way for Indian firm GMR to build a $1.4 billion

hydroelectric plant in the northwest of the country, a cabinet minister said, the Himalayan

republic's biggest foreign investment scheme. The Nepalese government agreed to allow GMR in

2008 to construct the 900-megawatt Upper Karnali hydroelectric power plant in the northwest.

Law Minister Narahari Acharya said a cabinet meeting had approved the draft of an agreement to

be signed with the Indian company. "This approval will open the way for different foreign

investment projects that are in the pipeline to move ahead," Acharya told Reuters after a cabinet

meeting.

Deficit rains likely to hit kharif foodgrain output by 7%

India's food grain production is projected to drop by 7 per cent to 120.27 million tonnes in the

kharif season of this year due to poor monsoon rains. Food grain output was 129.24 MT in the

kharif (summer) season of the 2013-14 crop year (July-June). On account of 12 per cent deficit in

rains so far, total area covered under kharif crops is lower by 3 per cent from last year.

With its launch in India, the

Coca-Cola Zero brand is now

available in all the top six

markets of The Coca-Cola

Company, the others being

USA, Mexico, China, Brazil and

Japan. The sugar-free soft

drink will be available in 100

cities from October 5.

India shows a price increase of

3.8% over the last 12

months; Dubai took the top slot

and registered 24% growth in

the same period.

Shares of Suzlon

Energy slumped 10 per cent

after fresh shares allotted on

conversion of foreign currency

convertible bonds (FCCBs) of

the company began to trade on

Friday. Suzlon's stock tumbled

9.93 per cent to Rs. 20.40, its

lowest trading permissible limit

of the day on the BSE.

Gold prices hit a three-month

low of Rs. 27,010 per ten gram

on Friday due to heavy selling

by stockists, triggered by a

weakening global trend.

RBI caution banks on Jan Dhan Yojana accounts

The Reserve Bank warned the banks to be more careful while opening accounts under the Jan

Dhan Yojana, saying that a single individual could open multiple accounts in the lure of Rs. 1 lakh

insurance cover. “There are some caveats when the banks are implementing the financial

inclusion scheme under the recently launched Jan Dhan programme,” RBI Executive Director P

Vijay Bhaskar said at a CII seminar. He said people could open accounts in different banks using

different identity documents like PAN card, Aadhar among others in the lure of getting insurance

cover of Rs. 1 lakh from all the banks. The banks should have a single information sharing system

by which this possible misuse could be stopped.

Norms for realty investment trust to be notified soon: SEBI

With an aim to attract greater foreign and domestic investments into real estate, SEBI said it will

soon notify norms for creation and listing of business trusts for this key sector. Two separate

committees have been set-up for the specific guidelines on the issue. Addressing a conference

organised by ASSOCHAM, SEBI Executive Director Ananta Barua said: "We will soon notify the

new norms on Real Estate Investment Trusts or REITs.

China fines GlaxoSmithKline US $489 million for bribery

GlaxoSmithKline (GSK), the British pharmaceutical giant, was on Friday fined US $489 million, the

biggest-ever penalty given by a Chinese court, for bribing doctors in China to boost sales. The

Changsha Intermediate People's Court in central China's Hunan Province imposed a fine of 3

billion yuan (US $489 million) on the Chinese branch of GSK while sentencing its manager, a

British national, to three years in prison. Following Friday's closed-door trial of the bribery case

involving GSK China, the court ruled the firm was guilty of bribing personnel in the business and

imposed the fine, China's official Xinhua news agency reported.

KMAMC to acquire schemes of PineBridge Mutual Fund

Kotak Mahindra Asset Management Company, a wholly-owned subsidiary of Kotak Mahindra

Bank Limited, has executed a definitive agreement to acquire the domestic schemes of

PineBridge Mutual Fund (PBI MF), subject to regulatory approvals. PBI MF is managed by

PineBridge Investments Asset Management Company (India) Private Limited. The assets included

are equity-oriented. “We have an appetite for further acquisitions which can create value for us

and we would be keen to consider such opportunities," KMBL President-Asset Management, Life

Insurance and International Business, Gaurang Shah said.

On 13 March 2013, Google suffered a huge

blow when Andy Rubin stepped down as the

executive in charge of its Android operating

system for smartphones and tablet computers.

An Indian Businessman, Pichai Sundararajan

(better known as Sundar Pichai) was then

appointed as an executive in charge of the

company's Chrome Web browser and operating

system for lightweight laptop computers.

He was born and brought up in the southern

state of India, Tamil Nadu. He graduated as an

Engineer from Indian Institute of Technology,

Kharagpur. He was named a Siebel Scholar

and a Palmer Scholar during his MBA from

Wharton School. He also holds a MS degree

from Stanford University.

1972

IIT Kharagpur

Stanford University

The Wharton School

McKinsey & Co.

Prior to joining Google in 2004, he worked for

McKinsey. He joined Google as the

Vice-President of the Product Management and

is said to be the man behind the creation of

Google Chrome. Pichai has always been known

for his hard work and intelligence. His teachers

from IIT Kharagpur have mentioned in the past

that he always was the topper in his batch. His

intelligence was even praised by the CEO of

Google, Larry Page. He has the ability of

making new things and keeping it simple. He

always has a deep technical expertise and a

vision for his products. He also has a

tremendous entrepreneurial flair. This rare

combination of attributes make him stand out as

a strong leader. So, he is seen by many Google

employees as the next CEO. As mentioned by

his colleagues, he is a very good team player

and an emphatic leader.

Recently Google launched Android One phones

at a reasonable price of $100 to start with. With

this Google is trying to enter the uncovered

segment in the Indian market. Sundar Pichai is

said to have been the man behind this idea.

Google has a plan of expanding this to all other

countries of Asia. This is a challenge lying

ahead for him. However, another challenge for

him would be bringing Google’s Chrome book’s

laptop in the mainstream. He also serves as a

Member of Board of Advisors at Ruba, Inc.

- By Rishabh Agarwal

Apple iPhone 6 released a 4.7 and a 5.5 inch

screen plus version. iPhone 6 has been launched

to satisfy the increasing demands of loyal Apple

customers for a bigger size phone than the

existing ones.

Technical Specifications

Like iPhone 5 and 4, iPhone 6 also uses

Qualcomm 4G LTE modem and homemade main

processor ‘A8 chip’ which has been made in

collaboration with ARM holdings. The phone also

has a Wi-Fi module by Murata and a touchscreen

controller by Broadcom. Albeit rumors that

scratch resistant Sapphire glass will be used, the

plan was scrapped at the last moment.

Unlike the previous versions, iPhone 6 contains a

NAND memory chip made by SK Hynix which can

be used for storing music and images. Both

phones have got some major improvement in

camera in the form of sensor upgrades, improved

tone mapping, better noise reduction, and new

iPhone 6 is the big release for

Apple this year

Technical modifications with

look and feel advancements.

IOS 8 the game changer

Nexus with almost same

specification in lower budget

can be a tough competitor.

Brand Loyalty will play a very

big role

- By Abhinav Agarwal

"Focus Pixel" technology, which improves the

phone's ability to select autofocus points.

Retina HD Display

The phone uses ion-strengthened glass with an

improved polarizer, a photo aligned IPS liquid

crystal display and a finger print resistant

oleo phobic coating.

Battery Life

The two kinds of batteries 1810 mAh and 2915

mAh makes the phone life better with addition of

10 more hours in comparison with the previous

versions.

Operating System

To increase the continuity and seamless transition

between the other i-devices, Apple has included

IOS8 that includes features like interactive

notifications, third party keyboard and new quick

time predictive keyboard has made key and

prominent improvements to the device.

The Road Ahead

With increase in competition from Google Nexus

which caters almost the same specifications in a

much affordable price, Apple can bank upon their

brand value and loyal consumer base. But the

launch shows a completely different picture with

share prices falling on the big day. The main

tangible change in the phone has just been the

look and feel which drives to a much conclusive

statement or rather question: Is bigger the better?