Financial focus

Weekly Newsletter InFINeeti

ISSUE 8 VOLU ME 2 20 13

TOP STORIES.........1 MARKET ACTIVTY ECONOMICS

.....2

....... ... 3 .4

TERM OF THE WEEK

A one stop guide to know about all the recent happenings in the finance world

TOP STORIES : INDIA

Financial focus

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 below 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 biggest cause of worry and the single biggest reason for the sharp drop in stock markets, analysts said.

RECENT RBI MOVES DON'T AMOUNT TO CAPITAL CONTROLS

Despite outflows spooking markets, Finance Ministry reiterated that recent RBI steps were not for capital control & such steps would be unlikely. Around four weeks 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 freefall was a clear-cut important strategy. Now indications apart from the politics of it are 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.

WPI INFLATION ACCELERATES TO 5.79% IN JULY

India's headline inflation accelerated to 5.79 percent in July, the fastest pace in five months, mainly driven by higher food prices and costlier imports as the rupee fell to 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 145 per cent in July on an annual basis. It has risen by 114 per cent in the previous month 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.

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Weekly Newsletter InFINeeti

TOP STORIES : WORLD

EUROZONE BACK IN GROWTH MODE, BARELY

The Eurozone officially returned to growth in the second quarter, with a 0.3% rise in gross domestic product. But economists warn that the still-slow progress offers little to cheer about, noting that it may even slacken efforts to address long-standing problems with the single currency. "The big problem is the damage being done to the legitimacy of governments, to the productive capacity of Europe through forgone investment, and to the supply of labor" through prolonged unemployment, particularly among the young, said Adam Posen, president of the Peterson Institute for International Economics in Washington

RUSSIA'S GAZPROM POSTS PROFIT DECLINE FOR 2013'S FIRST HALF

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

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 highest growth since March 2004, according to the Office for National Statistics. The data add 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 fastest growth 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

CHINA, JAPAN ADVANCE AMID MIXED ASIAN-PACIFIC MARKETS

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 225 rose 0.8%. Hong Kong's Hang Seng Index slid 0.2%. Australia's S&P/ASX 200 was flat. 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 174.72 cr. every week for 20 weeks. After that NSEL will pay Rs 86.02 cr. for the next 10 weeks. Pay-In to be every Friday and Pay-Out to be every Tuesday. Some members to settle via stock sale of Rs 1,219.7 cr. NSEL says it will settle `5,574 Cr pay-out From Aug 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 the total don't add up to the Rs 5,600 cr. NSEL is supposed to pay

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Weekly Newsletter InFINeeti

RUPEE CROSSES 63/$, MARKS BIGGEST SINGLE DAY FALL 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 by CNBC-TV18 shows, the rupee marked its biggest single day fall in the last 10 years by plunging 2.8 percent in the last two trading sessions.

ECONOMICS

BOFA WILL ABSORB MERRILL LYNCH INTO CORPORATE STRUCTURE

Bank of America said in a regulatory filing that it will dissolve 99 -year-old Merrill Lynch and absorb its debt and obligations. Merrill Lynch could cease to 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 AIRWAYS MERGER

The Justice Department has sued in U.S. District Court to block a proposed merger of American Airlines and US Airways, a combination that would create the world's biggest airline. The merger would give four carriers control of more than 80% of commercial air travel in the U.S. "It looks pretty bad 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 RECOVERY

While the world economy is picking up momentum, the U.S. recovery, for myriad reasons, is likely to be stronger and more sustainable, according to The 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 first 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 directive.

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Weekly Newsletter InFINeeti
Source : FLIP

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Weekly Newsletter InFINeeti

Stock Name
Cipla Apollo Tyres Gujarat Gas Co Ltd STCI

Call
Buy Buy Buy Buy

Target Price
425 65 203 126

TARGET HIT

Last Weeks Stock Calls that hit their target levels

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 financial advisor before taking any investment decisions

InFINeeti Team

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