agriculture

Macronomics: A Macro Look at the Rupee and Foreign Investor Flows

by Paul Joseph July 30, 2015 Featured

FIIs seem to be easing off on India. As much as we can imagine that China’s loss – it’s market in Shanghai has fallen over 10% in the last two days – is our gain, it really doesn’t seem to be so, looking at foreign investor data. Here’s the picture in charts. The rest of this content is only available to premium members. Register for a premium membership today ! Apart from this content you will get our proprietary research and weekly newsletter too! Already a subscriber? Log in now !… (Read On…)

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Syngene IPO: A Very Dull Analysis

by Paul Joseph July 27, 2015 Featured

Syngene has an IPO coming up, here’s the detail: Offer: 2.2 crore shares Price: Rs. 240 to Rs. 250 Size: Around Rs. 500 cr. From: 27th July to 29th July 2015 Lot: 60 shares (Rs. 15,000 approximately) We make a very cursory analysis of the IPO, as we have realised in recent times, (paraphrasing Samir Arora): If the IPO is bad you don’t want any shares. If it’s good, you wont’ get any shares (allocated). So detailed analysis are largely useless and it’s better to consider buying after the company lists, usually. So this is going to be abrupt and boring. Who gets the money? Not Syngene. They don’t get a paisa from the IPO. All the money goes to Biocon, the promoter of Syngene. This is bad for Syngene – typically it would have taken money from an IPO and expanded operations. But because it is a cash generating company it probably doesn’t want the dilution, and eventually they can dilute away through QIPs etc.… (Read On…)

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Macronomics: Highest CNX 500 P/E in Eight Years!

by Paul Joseph July 23, 2015 Featured

The rest of this content is only available to premium members. Register for a premium membership today ! Apart from this content you will get our proprietary research and weekly newsletter too! Already a subscriber? Log in now !… (Read On…)

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Conversations: Raghu Vohra on How Fixed Income Funds Work

by Paul Joseph July 22, 2015 Featured

In another round of Conversations, we bring you Raghu Vohra, founder at Blackstone Valley Group speaking about How Fixed Income Funds work :   Raghu speaks of how global funds that are called “fixed income” work, of mandates and investments and all that. Add to that a quick note on Puerto Rico and other happenings. In conversation with Deepak Shenoy, we learn that: Fixed Income funds can invest beyond bonds Mandate just as important as regulation Bond managers decision making processes The craziness that’s in Puerto Rico and Greece Hope you like it!… (Read On…)

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Premium: How Do You Park Cash For Tax Efficient and Good Returns?

by Paul Joseph July 17, 2015 Featured

We don’t usually do personal finance posts on this forum, but since we’d discussed this a while back on the groups, we thought it’s a good idea to post more information. The rest of this content is only available to premium members. Register for a premium membership today ! Apart from this content you will get our proprietary research and weekly newsletter too! Already a subscriber? Log in now !… (Read On…)

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Charts: India’s Trade 14% Lower, Even as Deficit Improves With 35% Drop in Gold and Crude Imports

by Paul Joseph July 16, 2015 Featured

India’s trade continues to show two very distinct signals. First, that the deficit is down. Look at the merchandise trade stats for June 2015: the deficit is just $10 billion, which is about as low as it has been in the last few months. Imports are lower both due to lower crude oil imports (due to the lower crude prices, not lower consumption) and lower gold imports (which is both due to lower gold prices and lower consumption). Gold imports are down 37% from last year ( DNA ) and in volume terms has fallen from 221 tonnes for the AMJ quarter 2014 to 203 tonnes in 2015. ( Hindu ) This is great for the current account, where gold has been the make-or-break for us. If you take away gold imports, we actually are a surplus on the current account! The Bad Part: Trade Volumes In The Toilet But wait.… (Read On…)

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Why does RBI Sell Bonds, Like It Has Done Today?

by Paul Joseph July 14, 2015 Featured

RBI is doing an OMO sale of government bonds today, and has sold Rs. 8270 cr. worth bonds. Why? This is a good question. Why does RBI sell bonds? Who gets the money? Answer: Not the government. Sure, RBI sells government bonds (as a merchant banker) on every Friday. That’s when the government gets money. A lot of it. 15,000 cr. will be sold just this Friday. But that’s not the same thing as this OMO sale. When the government sells bonds, the RBI is just a banker, organizing the sale through an auction. But RBI also owns some government bonds on its own. RBI is a separate entity and has its own balance sheet, and on that, it owns assets like dollar reserves, rupee bonds etc. It doesn’t buy them from the government (it’s not allowed to) but it buys them from the market, as purchase operations. It has done this consistently in the past, buying bonds on the market as required.… (Read On…)

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SEBI Increases Lot Sizes to Rs. 5 lakh from November, Index and Stock Contracts Will Change

by Paul Joseph July 13, 2015 Featured

SEBI has changed the game for derivatives traders. A new circular (HT Vashistha ) has increased the lot sizes of each contract, so that: The minimum contract size has been upped from Rs. 2 lakh to Rs. 5 lakh. This applies from contracts for the November expiry (that is, for all trading after the October contract expiry) Which means the first “new” lot size will be applicable from the end of July (after the July expiry, the next set of contracts are Aug, Sep, Oct) Lot sizes will be reevaluated every six months. For stocks, futures and options contracts will have sizes of a minimum of 50 with increments or decrements of 25 shares. If even at 50 shares the contract size is greater than 10 lakhs, then the minimum will be 10 shares with increments of 5 shares. For indexes, the minimum is 10, with an increment of 5. So a Bosch at Rs.… (Read On…)

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Macronomics: IIP Sectors Show Alaming Slowdowns in Key Sectors

by Paul Joseph July 11, 2015 Featured

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China: Gotta Buy Those Shares, You Insiders!

by Paul Joseph July 10, 2015 Featured

From the country of we-will-find-you-and-then-we-will-kill-you if you sell shares:  ( link ) All listed companies,   To support shareholding increase by listed companies’ shareholders and their concerted actors as well as stabilize the capital market and protect investors’ interests, the Shanghai Stock Exchange (SSE) hereby makes notification on relevant issues as follows:   1. Relevant regulations in Article 9 of “Code of Conduct for Shareholding Increase by Listed Companies’ Shareholders and Their Concerted Actors” and Subparagraphs (1), (2) and (4) of Article 4.5 of “Code of Conduct of Controlling Shareholder and Actual Controller of Listed Company” published by the SSE shall not be applicable to the following situation: a listed company’s shareholders, controlling shareholders and their concerted actors holding more than 30% of its shares increase shareholding and promise not to lessen shareholding in the next 6 months, when stock price of the company has accumulatively dropped by over 30% for 10 consecutive trading days. … (Read On…)

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