February 28, 2016 | A FinNiche Initiative
EDITORIAL I S S U E
Another momentous fortnight! CONTENT JAT RESERVATION AGITATION | 3 G20 PLEDGES TO STRENTHEN GLOBAL RECOVERY | 5 WORLD BANK ANNOUNCED $150 MILLION TO COMBAT ZIKA VIRUS | 6 TRENDING NEWS | 8 MARKET | 10 FIN-WORD | 11 START UP TRACKER|12 PERSONALITY | 13
As the month draws to a close, the senior batch gets ready to bid farewell to IMT. During the past two weeks we witnessed successful completion of Crescendo 2016 and Farewell for the senior batch. Club FinNiche congratulates the senior batch on successful completion of their 2 Year PGDM Program at IMT Ghaziabad. We wish them all the best for their future endeavors.
As always we are ready with insightful national and international articles and much more at your disposal. 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
NATIONAL BY ALANKRITA
I S S U E
Jat reservation agitation: Is this justified? This protest started on 12 February by Jat billion while more than 10 lakh passengers
SNIPPETS
Reservation should be snatched by power of strength?
community especially in Haryana followed by have been affected. Delhi faced water crisis nearby states for inclusion of their caste in due to protests. The Government has atthe
Other
Backward
Class
(OBC) tempted to pacify the Jats by setting up a com-
category, which would make them eligible mittee
to
look
into
their
demand.
Is killing people,
for
affirmative
raping women,
The
protesters
burning homes,
railway lines. They also blocked water including Jat as OBC and same has been done
damaging the states
supply to the neighboring Delhi, resulting in a by
infrastructure
temporary water crisis in that state. The The Supreme Court had made it clear that
justified by any
Government deployed Indian Army
means?
paramilitary forces to control the protest. By approve
action
blocked
b e n e f i t s . National Commission for Backward Classes
highways
and (NCBC) has already rejected the idea of
and caste
the
Supreme
alone
cannot
court be
reservation
the for
of
India.
reason a
to
certain
25 February 2016, 28 people had been killed community. The apex court had said that to and 200 more had been injured in Haryana; determine backwardness of a community, 1 27
By
pe o p le
22
ha d
February,
b e en
the
a rre ste d . social backwardness should be the prime
protests
were concern. They are a numerically and socially
estimated to have caused a loss of 340 dominant community. Jats in Haryana make up billion in northern India. The Northern over a quarter of the state’s population, giving Railways
PAGE
3
has
suffered
a
loss
of
2 them considerable political heft. They also
The first step to solving a problem is to Imagine what will happen if Kayasths, accept that there is a problem. JAT stir has Rajputs, so far resulted in more than 20 deaths, other
Baniyas,
and
communities
hundreds launch
of
similar
multiple rapes, destruction of properties blackmailing and bloody agitations for worth 1000s of crores and injuries and Reservation Quotas. trauma to 100s of persons. And even if there were unforeseen instigators, this is the greatest administrative tragedy in last 2 years in a BJP led state. It was also the most vicious scene of majoritarianism in recent times.
PAGE
4
Reservation is meant fir weaker section of society for their upliftment. It surely cannot be snatched by power of strength.
INTERNATIONAL B Y
I S S U E
A B H I N E E T
G20 pledges to strengthen global recovery SNIPPETS * Global recovery continues but fall short of expectations
* Rate changes in Japan ,USA and concerns over oil prices
SHANGHAI: Financial policymakers of the world's 20 major economies on Saturday pledged to use "all tools", including monetary, fiscal and structural ones, to strengthen global recovery amid growing concerns of further d o w n w a r d r i s k s . "The global recovery continues, but it remains uneven and falls short of our ambition for strong, sustainable and balance growth," noted a communiquĂŠ issued after the two-day G20 finance ministers and Central Bank governors meeting here. RBI governor Raghuram Rajan along with additional finance secretary Dinesh Sharma a t t e n d e d t h e m e e t in g . The policymakers cited volatile capital flows, slumping commodity prices, escalated geopolitical tensions, a potential UK exit from the European Union and increasing refugees as major vulnerabilities of the global economy. The gathering came amid weak economic growth worldwide and increasing financial volatility that saw frequent and drastic falls in the stock markets across the world. Japan's surprising adoption of negative interest rates, uncertainties over the prospect of rate hikes in the US, plunging oil prices and concerns over the financial strength of leading banks in Europe have combined to add uncertainties to the global financial landscape Despite the challenges, the group judges that the magnitude of recent market volatility has not reflected the underlying fundamentals of the global economy, state-run Xinhua news agency reported.
PAGE
5
"We expect activity to continue to expand at a moderate pace in most advanced economies, and growth in key emerging market economies remains strong," the group said. To foster confidence, monetary policies will continue to support economic activity and ensure price stability, but monetary tools alone cannot lead to balanced growth, said the communique.
"We will use fiscal policy flexibly to strengthen growth, job creation and confidence," it added. Among the focus of the meeting is the exchange rate mechanism. For China, its currency yuan has been heading south since the government revamped the foreign exchange mechanism last year, and concerns about capital outflows have been on the rise.
INTERNATIONAL BY
ARNAB JANA
World Bank announced $150 million to SNIPPETS
Funding to
nations
the Caribbean
Roadmap of
The World Bank Group on 18 February
by the The World Health Organization,
2016 announced 150 million US dollars in
which said it will take $56 million to kick-
Proposed
funding to combat Zika virus in Latin
start a coordinated international response
utilization of funds
America and the Caribbean.
to the Zika virus outbreak racing through
support Caribbean
WHO
combat Zika Virus in Latin America and
The funding is aimed at supporting the countries in the region that are projected to incur losses up to 3.5 billion US dollars or 0.06 percent of gross domestic product
tap
a
newly
created
emergency
contingency fund to pay for the initial efforts.
(GDP) in 2016 due to the spread of Zika
The organization said that a hefty chunk of
virus.
the
The World Bank announced funding as it was observed that a group of countries highly dependent on tourism—notably in the Caribbean—could suffer losses in excess of 1 percent of GDP.
money
will
go
toward
disease
surveillance, which will include tracking new Zika cases and the suspected birth defects and rare autoimmune syndrome that scientists suspect are linked to the mosquito-borne virus. More funding will be used to
help
provide
counseling
to
Earlier, on 1 February 2016, the World
pregnant women, as well as to help
Health
communities
Organization
(WHO)
declared
with
mosquito-control
Public Health Emergency of International
programs. Still more funds will go toward
Concern over Zika virus outbreak and
research to speed the development of new
urged international community to provide
vaccines, treatments and diagnostic tests,
additional support to stem the impact of
as well as to study whether and how Zika
the virus.
is causing serious conditions such as
The bank's announcement follows an
microcephaly.
earlier announcement the very same week
PAGE 6
much of the Americas. The WHO plans to
partners,
including
non-governmental
organizations and research institutions
Centers
such as UNICEF, AmeriCares, Save the
Prevention, which already has put its
Children, the International Medical Corps
emergency operations center in Atlanta
and the University of Texas Medical
on the highest level of alert to monitor
Branch. The remaining funds will be
the disease. The White House also
disbursed within the WHO and its
proposed $250 million for a one-year
regional offices in the Americas -- known
i
as the Pan American Health Organization
Medicaid funds for Puerto Rico, which
-- to help carry out the plan through
has seen a growing number of Zika
June. Earlier this month, the organization
infections. The administration would
declared the Zika outbreak and the
pump $200 million into accelerated
accompanying spike in congenital brain
vaccine and testing techniques for Zika
abnormalities in newborns to be a public
through the National Institutes of Health
health
and the Food and Drug Administration,
emergency
of
international
concern.
much less than those sought by the
c
r
Disease
e
a
s
Control
e
and
i
n
to respond to new outbreaks if they appear in the United States.
Obama administration, which earlier this
The rest of the administration's funding
month asked Congress for $1.8 billion to
request would help other countries
respond to the Zika virus abroad and
respond to the virus. It would include
prepare for it at home.
$335 million for the U.S. Agency for
About
7
n
for
and $210 million would go to a new fund
The resources detailed by the WHO are
PAGE
administration's request would go to the
$828
million
of
the
International
Development
and
$41
million for the State Department to
NEWS A B H I N A
I S S U E
India and US joint mission NASA has started realizing India’s potential and has decide to allow Indian astronaut to head on a mission to the red planet following India’s successful demonstration of capabilities in Mangalayan Mission. India will hold a key position among some of the world’s top players like US, Europe, France, Italy and others where everyone pools in their resources to explore the solar system. Brand creation in the govt. tedious NITI Aayog chief Amitabh Kant is of the view that it is much more difficult to create a brand for government than for a private company holding a product and striving for its brand creation. Currently the part-time CEO, he would soon become the CEO this Tuesday. It has been decided that a quality cum cost basis model would be used for NITI. According to him, young officers should think big, think scale. The current focus of NITI however would be to improve social indices of India with a strong focus on healthcare and education sectors. Asia-Cup: Pak bowled over by India Indian bowlers restricted Pakistan to a third lowest score by any team against India. Though the batting side was not very efficient in the beginning, still they managed to pull off this game because of Kohli’s 49
PAGE
8
P A N D A
off 51 balls and a 68-run partnership with Yuvraj Singh (not out). It was entirely a match resting on Bowlers' shoulders, even Mohammad
Amir
bowled
very
well.
However, Indian batsmen survived the fast and furious bowlers of Pakistan to emerge victorious. Hedging Equity Portfolios FIIs who have earlier been playing safe by avoiding
emerging
markets
are
now
hedging equity portfolios in derivatives markets just ahead of the Union Budget 2016. the markets have also witnessed the highest
ever
index
options
purchase
numbers ahead of Union budget where FIIs purchased Nifty options worth over Rs 20,000 crores in past two months. The last time such a fluctuation in the market was seen in the year 2011, before the Union Budget. Patent wars: Samsung Victorious Tables have now turned for Samsung when an US appeal court handed Samsung a win over Apple overriding another jury verdict ordering it to pay $119.6 million to the latter. The decision was based on the ruling that two patents at issue were not valid as per the online copy of decision. The companies have battled in close to a dozen countries regarding the infringement of patent issues relating to their flagship products like smartphones and tablets. But
neither had till now managed to deliver
from Monday. The decision came just
the final blow in the patent war which
than the estimated.
has been going on since almost a decade. Nissan to buy back shares
Eco survey: Its stand on RBI The economic survey appeared to turn
Japanese car manufacturer has decided to
the tables on the reserve bank of India in
buy back shares worth 3.5 billion dollars
terms of recapitalisation of banks due to
equivalent to 400 billion yen by year end.
the regulatory zeal to clean up the bad
However the French partner Renault will
debts. According to the survey, the RBI
not suffer any changes because of the buy
could step in to boost capital position of
back. This operation is supposed to begin
the
after the close of Tokyo stock exchange
regulatory role by utilising the capital
where Nissan ended just a little higher
buffer that the RBI has.
.
PAGE
9
banks
without
fore-going
its
MARKET TULIKA
INDIAN MARKETS as on Feb 26, 2016
TOP THREE PERFORMERS FOR THE WEEK
PG ELECTROPLAST
BF INVESTMENT
Indian shares posted their first daily gain s in four sessions on Friday after a government report on the economy got released days prior to the Union Budget 2016-17. NSE rose by 0.85 percent to end at 7,029.75 points after earlier gaining as much as 1.2 percent. The benchmark BSE index gained 0.78 percent to close at 23,154.30. It is a wise principle in financial markets not to predict, at this juncture when we are so close to the budget being unveiled, it would thus be prudent to wait and watch the policy framework before taking a trading call, although this time the odds are that market will take the budget as a bullish signal. INDEX
Open
High
Low
Close
SENSEX
23,141.08
23,227.91
23,021.94
23,154.30
NIFTY
7,039.30
7,052.90
6,985.10
7,029.75
BSE SENSEX
VIDLI RESTAURANTS LTD.
TOP THREE LOSERS FOR THE WEEK
UNITED BREWERIE
CNX NIFTY
INDOCO REMEDIES
SUPERB PAPERS
PAGE
10
FIN-WORD BHAGIRADH SISTA
Luhn Algorithm An algorithm used to validate a credit
SNIPPETS
card number. The Luhn algorithm, also called the Luhn formula or modulus 10,
Also termed as
checks the sum of the digits in the card
Modulus 10
number and indicates whether the sums
This algorithm
equal what is expected or if there is an
has eased the
error in the number sequence. While the
credit card validation
algorithm can be used to verify other
process
commonly associated with credit card
Most commonly
verification. The algorithm works for all
associated algorithm and
major credit cards.
identification
works for all the credit cards
numbers,
it
is
most
also used to verify other identification numbers apart from credit cards
in a credit card transaction as much as it is designed to check for errors made in the transmission
of
card
numbers.
For
example, a cardholder may type in the wrong digit while making a purchase online. Rather than go through the entire verification process only to determine that the number was mistyped, the algorithm returns an error message if something is
businesses and credit card companies to be
amiss.
financial
information
about
the
card,
the issuer, and the cardholder nearly instantaneously. The volume of credit card transactions complicate this process, and the companies party to these transactions resources
required
to
verify
the
transactions as much as they can. One way that they can speed up the verification
11
protect the security of the parties involved
The credit card validation process requires
look for ways to limit the amount of
PAGE
The Luhn algorithm is not designed to
checks the digits earlier in the process and
able to encrypt and decrypt sensitive This algorithm is
process is to use the Luhn algorithm.
To determine whether a credit card number is valid, the sum of all of the digits (but not the check digit) is first calculated to find the units digit. The difference between the units digit of the resulting sum and the number ten is the estimated check digit. If the estimated check digit and the actual check digit are the same then the card has been validated.
START-UP TRACKER NISHANT RATHI
M a t r i x
Razorpay.com SNIPPETS
Partners and
What it is : Razorpay is an online payment
g a te w a y
s o lu ti o n .
The
startup accepts and validates Internet
Founders : Harshil Mathur and Shashank Kumar
payments
via
credit/debit
cards,
net
banking and popular digital wallets from
33
angel
investors which include Y Combinator, Kunal Bahl and Rohit Bansal, Punit Soni; Razorpay received series A funding round of $9 million, led by Tiger Global.
the end customers in real time. It does this
Growth : So far the startup has made
by providing a secure link between the
good progress and claims to have over
merchant
1800+
website,
various
issuing
customers,
which
include
-
Industry : online
institutions, acquiring banks, and other
RoadRunnr, Lookup, Gozefo, Innerchef,
payments
payment networks.
Teen Patti Gold, UrbanPiper, Instafeez,
Razorpay was co-founded by Harshil Mathur and Shashank Kumar, both alumni of IIT-Roorkee. In 2014, they were working on a side project hoping to create a startup around it and got a first-hand experience of the problems in the payment gateway onboarding process, which involved a lot of paperwork, bureaucratic
red
tape,
and
12
completely online onboarding experience for merchants and easy Android & iOS SDKs integrations for mobile payments. With support for international payments,
50+
banks,
popular
digital
wallets and a 24Ă—7 support team, Razorpay aims to become the de facto choice for payments in India.
issues. The team found that the existing US
Currently,
-based payment systems such as Stripe
capturing the Indian market but in the
were unsuitable for companies who wish
future they aim to enter South East Asian
to accept payments in India. So they set
markets too as its technology is replicable
out to enable frictionless transactions with
across other emerging markets which face
Razorpay.
similar issues.
Funding : A week after they closed their
Website : www.razorpay.com
seed round of $2.5 million from
PAGE
other
Chai Point, and Sattviko. They provide a
Razorpay
is
focusing
on
Hiliary Clinton BY VIKAS GUPTA
Hillary
2000, she deliberately kept a low
Rodham
profile—engaging in alliance making with
Clinton is the
the religiously inclined senators by
candidate
for
attending the Senate Prayer Breakfast.
President
After the 9/11 attacks on the World
Diane
the
elections
2015
Trade Centre she sought to get funding
United
for the WTC site redevelopments and
States of America. She is the wife of
also for increased security in the State.
former
’Bill’
She was also a strong supporter of the
Jefferson Clinton, being the First Lady
US action on Afghanistan and also voted
during 1993 to 2001. Her political career
in favor of US action in Iraq—which gave
spans more than a decade—starting in
US troops to use military power in Iraq.
2000 as the first female senator from the
Later in 2005, she also visited the army
state, and became the only First Lady to
troops posted there, observing that the
incumbent the post. Her tenure as the
war deployments were depleting regular
First Lady was highlighted with several
and reserved forces, she vouched for
initiatives taken by her especially in the
increasing the size of the US Army by
field of healthcare. Her working style
80,000.In her second term as the Senaor,
generated mixed view—some rating her
Clinton
as the most openly working First Lady
surge– citing domestic reasons. In 2008
ever
her
she stand for the presidential election,
involvement and role in policy making
her competitors being—Senator Barack
and stating that the President’s position
Obama ( of Illinois) and former Senator
should not be compromised. Her first
John Edwards ( of North Carolina). Her
proposal for a major healthcare plan was
earlier support of Iraq war was seen as a
opposed vehemently by many ( including
hindrance to her path to Presidency,
some
which
of US
while
of
president
some
the
the
William
questioning
congress
members)
Obama
had
the
Iraq
troop
opposed
since
following which it failed to pass through.
beginning. Eventually Barack Obama won
There were some more allegations
the Presidency election. As per the
down the line but she came through
recent trends, she is definitely in the run
unscathed.
to become the 45th President of
After being elected as the US Senate in PAGE 13
opposed
U.S.
the