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On Slack: RuPay cards, Indi Go go, Forex Reserves, TeamLease IPO, Fresh crisis in the microfinance sector, Crystal-Clear Wave Pattern and more…


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The Slack Discussions

The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there, pop us a note by replying to this email. (If you’re a trial member this probably sound like Greek to you; it will be available when you sign up!)

A brief summary of some of the interesting things discussed there in the last few days:

#general: RuPay cards gaining currency among the poor

More than half the 20.19 crore people who have opened basic bank accounts under the Prime Minister Jan Dhan Yojana have activated their RuPay cards and are using them regularly.

#general: India’s Jugnoo Closes $5.5M Series B For Its Auto-Rickshaw On-Demand Service

New Delhi-based Jugnoo confirmed this week that it closed Series B round at $5.5 million, after adding $2.5 million to the initial $3 million that it secured back in November 2014. The additional top-up was provided by existing investor Paytm, the Alibaba-backed billion-dollar mobile payments firm, with participation from Snow Leopard, another existing backer. The company raised a $5 million Series A round last summer.

#general: Government may further hike excise on petrol, diesel before Budget

Falling crude oil price provide us a headroom for increasing excise duty on petrol and diesel. It will help in meeting fiscal deficit target of 3.9 per cent for the current fiscal,” said an official source.

“The fiscal deficit target is sacrosanct and every effort would be made to meet the target,” added the source.

#stocks: SpiceJet makes Rs 238 crore in profit in Q3

Low fuel prices is raking moolah for airline companies with SpiceJet too announcing profits of Rs 238 crore during the third quarter of the current fiscal. The airline has shown a huge improvement over the same period last year, when the airline had reported losses of Rs 275 crore.

#stocks: 5 reasons why IndiGo shares went down 20%

(IndiGo, Stock)

#general: In Chennai, Thousands Of Luxury Cars Are Being Sold At Throw Away Prices

(Luxury Cars) (Chennai)

#general: Greece credit rating upgraded by S&P amid reforms

Standard and Poor’s on Friday upgraded Greece’s credit rating to “B-” from “CCC+” with a stable outlook, citing its progress in cutting costs and recapitalizing banks.

Greece is “broadly complying” with the terms of its 86 billion euro (roughly $92 billion) bailout deal financed by euro zone states, opening the possibility for broader debt relief, the ratings agency said. It noted that Greece’s economy has “proved more resilient” than expected.

#general: Moody’s Just Put Over Half A Trillion Dollars In Energy Debt On Downgrade Review

Moody’s took the global energy sector to the woodshed, placing 175 global oil, gas and mining companies and groups on review for a downgrade due to a prolonged rout in global commodities prices that it says could remain depressed indefinitely.

The wholesale credit rating warning came alongside Moody’s cut to its oil price forecast deck. In 2016, it now expects the Brent and WTI to average $33 a barrel, a $10 drop for Brent and $7 for WTI.

#general: “Is The Bottom In?” – BofA Answers The Question Everyone Is Asking

On Wednesday, as the Dow Jones plunged by over 550 points and the S&P dropped by 15% from its all time highs seen last summer, many speculated – most notably Tom DeMark – that the relentless selloff had finally hit an “interim low”, and was due for a rebound as much as 8%. Events since then have so far validated this forecast.

However the one question on everyone’s lips, is whether aside from a “interim low”, was Wednesday’s flush the market’s lows for the foreseeable future, and certainly for the first quarter.

#general: Uber’s India arm makes profit in first two years of operation

Uber India Systems, a local unit of the taxi aggregator, has made a marginal profit in both the years it’s been present in the country. Startups generally burn through cash in the initial years as they acquire scale and customers.

The company, which provides marketing and support services to Uber, posted a net profit of Rs 3.2 crore on income of Rs 69 crore in the year to March 2015, according to a Registrar of Companies filing. In the year before that, Uber India Systems made a profit of Rs 7 lakh on income of Rs 2.2 crore.

#general: For fiscal nutrition, four PSUs CIL, Nalco, Bhel and NMDC told to buy back shares

The government is pushing at least four central public sector enterprises (CPSEs) including Coal India to buy back their shares in a year end rush to raise more funds through disinvestment and make up a shortfall of about Rs 57,000 crore. The record FY16 asset-sale target is likely to be missed because of volatile market conditions.

#general: Sharp decline in forex reserves

Foreign exchange reserves have fallen by a cumulative $3.16 billion since the beginning of 2016 to $347.21 billion as of 15 January.

#general: Govt mulls levying trade tax on online shopping in Punjab

Avid online shoppers from Punjab may have to shell out more in the coming days with the Punjab government contemplating to levy tax on e-commerce websites.

#general: Amazon must take VAT responsibility: Industry minister

The state government appears to be firm that e-commerce firms have to take responsibility for the VAT (value added tax) to be paid on the goods that pass through their warehouses and portals.

#stocks: In the final installment, ASK group’s Bharat Shah explains why using P/E to derive value is plain stupid

E Ratio, Valuation

#general: How Larry Page’s Obsessions Became Google’s Business

(Google, Larry Page)

#macronomics: US airlines tried to save money on fuel, and now they’re regretting it

While carriers saved hundreds of millions of dollars from oil prices halving since June, they forfeited a large chunk of that gain because of the fuel hedges they bought as protection against oil rising.

The bulk of those hedges, which effectively lock in fuel costs in advance, are set at levels that force airlines to pay more for fuel than current market prices, turning them into a hindrance rather than a help.

#general: Silicon Valley braces itself for a fall: ‘There’ll be a lot of blood’

Wannabe entrepreneurs are still piling in to San Francisco, but there’s a sense that time is running out on the exuberant startup world. (Silicon Valley, Bubble)

#stocks: TeamLease fixes IPO price band at Rs 785-850; to open on Feb 2

The IPO, which closes on February 4, would be made through a fresh issue aggregating up to Rs 150 crore and an offer for sale of up to 32.2 lakh equity shares, the company said in a public announcement.

#general: The Trader Who Made 6,200% on China Stocks Has Some Advice For Investors

Huang Weimin, the hedge fund manager whose Chinese stock-index futures wagers returned more than 6,200 percent last year, has some advice for investors in 2016: Sell your shares now, before it’s too late.

The 45-year-old former worker at a state-owned company, a virtual unknown until last year, has become a star of the Chinese futures market after timely bets on the direction of share prices propelled his Yourong Fund to the top of the country’s performance rankings. He’s carried the winning streak into 2016, returning 35 percent through Jan. 22 after selling stock-index futures just days before the market’s worst-ever start to a year. The Shanghai Composite Index fell 1.6 percent at 9:54 a.m., bringing losses this year to 18 percent.

#general: Murmurs of a fresh crisis in the microfinance sector

A hundred suicides of microfinance clients can be termed ‘sporadic’, but each one of those stories has lessons for the majority intertwined in the system.

#general: Apollo Hospitals Group agrees to sell 23.3% stake in Apollo Munich Health Insurance

The Board of Directors of Apollo Energy Company Ltd., an Apollo Hospitals Group Company, at a meeting here has, approved the divestment of 23.3 percent shareholding in Apollo Munich Health Insurance Company Ltd. (“Apollo Munich”) to its joint venture partner, Munich Re of Germany for Rs. 163.5 cr. The proposed transaction values Apollo Munich at Rs. 703 cr.


Crystal-Clear Wave Pattern in Indian Stocks



Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

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