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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
endeavor to provide
you with a practical
exposure to the world
of finance and the latest
emerging trends in the
related fields of Risk
Management, Banking,
Investments and non-
finance topics.
Do write to us at:
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?