December 20, 2015 | A FinNiche Initiative
EDITORIAL I S S U E
1 1
D E C E M B E R
2 0 ,
2 0 1 5
Celebrating Winter: The IMT Way! As we are on the last lap of the year 2015, IMT witnessed its campus buzzing with a plethora
CONTENT Impact of FED Rate increase on India | 2 Alarming Pollution in Delhi | 3
of events and activities. We had our esteemed alumnus, the renowned motivational speaker and ace marketer, Mr Krish Dhanam spellbound the students and faculties alike with his wit and wisdom. RACE organized a rather intriguing and innovative quizzing event, The Knowlexir. The week came to an end with the annual media conclave organized by MRRC, Communicon ‘15. With events like Vichaar Vimarsh, Big 10 and the rib tickling play ‘Don’t Dress for Dinner’
Crisis at Burundi | 4
the conclave turned out to be huge success. Kudos to MRRC!
TRENDING NEWS | 5
Winter has finally set in, with all its guns blazing; and some of us are already finding it hard to
MARKET | 6
keep ourselves warm even under those multiple layers of clothes. Amidst all this Club
FIN-WORD | 7
FinNiche brings to you the next edition of our fortnightly magazine FinXpress. We hope you
PERSONALITY | 8
are finding our new segment ‘Startup Tracker’ as useful as our other regular segments in satiating your need for news and knowledge.
STARTUP TRACKER | 10
Both our senior and junior batches are gearing up for the upcoming end term exams. We wish
SPONSORS | 11
best of luck to all. Best wishes to all those seniors who will be leaving the campus after the term. We wish them all the success in their life ahead. Merry Christmas and a Very Happy New Year, IMT!
Happy Reading! Regards The Editorial Team Club FinNiche
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1
NATIONAL B Y
V I K A S
G U P T A
Impact of FED Rate increase on India On Wednesday, the US federal Reserve
eventually is likely to result in funds flow
increased the range of the benchmark
out of both debt and equity markets of
interest rate by 25 basis points to between
India, and put the rupee under pressure.
0.25 to 0.50%. The US Federal funds rate is
RBI governor Raghuram Rajan has shown
“the interest rate� at which depository
the confidence that Indian economy is
institutions (banks and credit unions)
prepared to deal with any eventuality
actively trade balance held at the Federal
arising out of the US Fed rate hike. The
Reserve (called federal funds) with each
same sentiment has been reflected by
other,
an
many analyst. As evident from the market
uncollaterized basis. This has been the first
reaction on Thursday, there was a positive
rate hike since 2006 signifying the end of
outlook and Sensex rose more than 100
almost a decade of easing monetary policy
points on opening trade, later on shrugging
of the US Federal Reserve; while also
off due to the recent Delhi Court ruling on
depicting the state of the world economy.
the bad on high end diesel cars.
usually
overnight,
on
The 2007 global financial market
Having
improved
its
foreign
crisis led to a severe economic downturn.
exchange reserves India is currently at a
In response, the US federal Reserve
better place than most of the emerging
reduced the federal funds rate essentially
economies.
to its lower bound of zero in December
exchange reserves by $65 billion in the
2008, with the goal of stabilizing the
past one and half years to $353 billion as of
economy. In the ensuing seven years, the
November 2015, the external balances has
Federal reserve continued to maintain near
certainly improved which gives a cushion
zero interest rates to stabilize inflation and
from the initial hiccups which may occur
increase employment rate.
due to the US Fed rate hike. Another point
Increasing
the
foreign
in favor the third largest economy is that
PAGE
2
The Impact of US Fed rate hike in
its dependency on commodity exports is
India
less compared to the several of its peers.
In simplest of terms, an increase in Fed
This helps in withstanding the global
rate will raise the borrowing cost for
commodity prices rout in a better way.
carrying trade i.e. borrow from US and
Thus if we look at the current monetary
invest in India. Further, this may make US
policy
bonds and equities more attractive for
government, the Fed rate increase may
investors looking for stable returns. This
actually turn out as a boon in the log run
along with the efforts of the
NATIONAL B Y
V I K A S
G U P T A
Alarming Pollution in Delhi The level of the air pollution at Delhi is no
recent report by the University of British
longer a mystery to either the residents or
Columbia found that Delhi has 7 days of
the government. But the sheer negligence
“healthy” air
and the inaction on both the parties has
compared to Beijing’s 58 days. And Beijing
led to the pollution hit a level so high that
has declared red alert twice in the past few
knee-jerk reactions and immediate actions
weeks.
are needed in order to improve the
Therefore now is the time when some
situation.
rapid and drastic actions are actually
First let us look at few of the facts related
needed and recently Delhi Government
to the Delhi air pollution -
has declared certain steps. One of the step
The allowable particulate matter in
which was covered immensely across the
the PM10 range is 2.5ppm and last
media is
week the level was 10ppm,
basically
As many as 10000 people die each
numbered registration plate can drive only
year prematurely because of the
on odd numbered dates and similarly for
high pollution level .
even. Some other steps declared are
As of now, more than thousand
banning of diesel SUVs by Supreme court
new vehicles which run on diesel
which have engines more than 2000cc,
are added daily on the roads of
increasing green cess on the trucks and
Delhi.
other
4
the odd even car rule, which means
heavy
that
vehicles
cars
with
entering
odd
Delhi,
Before going into the steps proposed to
converting all the registered taxis into
curb the menace of pollution, first lets
CNG versions,, ban the burning of crops in
understand the technicalities associated
and around Delhi and also questioning the
with
represents
operations of few power plants around
particulate matter 10 micrometers and less
Delhi which are causing a lot of air
in diameter.. It includes smoke, dust,
pollution.
particulate matter and mist. Similarly PM2.5
While there has been a lot of debate going
represents particulate matter with 2.5
on the applicability of these steps and the
micrometers or less in diameter. Both of
effects on the common man, it should be
these classes of matter
taken into consideration that the levels of
it.
PM10
basically
are harmful to being
air pollutions in Delhi has reached such a
carcinogenic in nature and many other
worse level that immediate measures need
respiratory diseases.
to be taken.
humans
PAGE
in 730 consecutive days,
and
other
animals,
To highlight the grave situation in Delhi, a
INTERNATIONAL B Y
R I S H A V
S I D D H A R T H
Crisis at Burundi: AU plans to deploy peacekeepers SNIPPETS
was
fighting
against
the
Tutsi
where a deadly civil war has been mired for
dominated army. Hutus make up around 85%
last 8 months in a deepening political crisis
of Burundi’s population whereas Tutsi make
that the African Union fears could initiate a
up 15%. Observers say that Nkurunziza was
when the
genocide.
failing to tackle poverty and corruption and
The crisis began when the President Pierre
now Arusha Accord, the cornerstone of
Nkurunziza on April 25th declared that he his
country’s democracy is on stake.
declared that he his planning for
planning for his 3rd term in the office. He has
The Great Lakes region has been one of the
been in office since 2005. The announcement
most unstable in Africa in the last decades,
his 3rd term in the office
sparked protest among those who were not
with two regional wars (1996-1997 and 1998-
in support of this like the civil society, the
2003) involving up to seven African nations
The Great Lakes
opposition, the Catholic Church and even
fighting on Congolese soil, and leaving over a
region has been one of the most
some of his own supporters. The protest
million
started on a daily basis which was then
Burundi has raised fears of further deadly
unstable in Africa in the last
banned by the authority. Even after the
instability, and more than 200,000 people
protest, Nkurunziza was re-elected as the
have already fled the country. The Crisis has
president in July in polls boycotted by the
already hurt ties with Rwanda, which has
The African
oppositions. The political crisis has worsened
being openly
Union has announced to send 5000
after that with daily clashed in the dark
whipping up tension. Burundi also borders
between the security forces and dissidents in
Domestic Republic of Congo, where dozens
opposition areas. On December 11th, there
of
decades.
which
The crisis began President Pierre Nkurunziza on April 25th
Burundi is a small country in central Africa
peacekeepers to protect civilians in Burundi
PAGE
6
people
armed
dead.
The
tension
in
accused by Bujumbura of
militants
are
at
work.
were attacks in three military barracks in the
Last week UN’s advisor against genocide,
capital of Burundi, Bujumbura. A total of 87
Adama Dieng, accused both Government and
died in the clash.
the opposition of hate speech to heat up the
Arusha Accords was responsible for ending of
Hutu-Tusti tension which was similar to
1993-2006 Civil War which was responsible
genocide in Rwanda in 1994. The African
for killing of around 300,000 people. Arusha
Union
deal was responsible for 10 years of peace in
peacekeeper to protect civilians in Burundi.
the country. But the oppositions say that
The proposal was approved by Peace and
Nkurunziza was violating constitution and
Security Council of African Union. African
Arusha Accord. 1993-2006 Civil War was a
Union said that they will not allow genocide
war between the Hutus and the Tutsis.
to take place in Burundi.
Nkurunziza was leading the Hutu rebel army
has
announced
to
send
5000
TRENDING NEWS I S S U E
COMMODITIES
1 1
B Y
N I S H A N T
R A T H I
Brazil's finance minister Joaquim
Indian Railways have initiated Five
Levy resigns
Year Plan model for turnaround
Finance Minister Joaquim levy resigned on
Railway Ministry intends to synchronize
18th December sparking fears that an
investment cycle for railways with the
GOLD 25082 INR/10 G
already ballooning budget deficit of Brazil
country's Five Year Plans. This will make it
will deteriorate further and prompting
critical that a proper lifecycle assessment
SILVER 33933
selling of its currency, the real. Nelson
of the project is done and the correct
INR/KG
Barbosa, former planning minister of brazil
projects are identified for implementation.
CRUDE OIL 2402 INR/BARREL
has replaced Mr. Levy.
Currently the ministry has started working
EXCHANGE RATES
on the 110 actionable points raised in the BSE listed companies spent Rs.6,400
2015 budget while work has also started
crore in 2014-15 on CSR
on
According to Confederation of Indian
modernization contracts which were not
Industry
announced in the budget.
(CII)
report,
Bombay
Stock
the
Rs.40,000
crore
locomotive
66.31 INR/ 1 USD
Exchange (BSE)-listed companies together
72.06 INR/ 1 EURO
spent Rs.6,400 crore towards corporate
Oil ends down for third week as U.S.
social responsibility (CSR) activities in 2014
rig count rises
-15 fiscal year. Around 55% of that has
Oil prices fell about half a percent after the
been
skills,
U.S. oil rig count unexpectedly rose for the
livelihoods, health and sanitation. 87% of
first time in five weeks, pressuring a
the eligible companies have actually spent
market already at seven-year lows. Report
on CSR but 52 percent shelled out less
from Baker Hughes Inc. showed 17 new
than two percent
which has been
rigs that brought the total to 541. After
mandated by Section 135. The reason for
the release of this report, U.S. crude's
less spending vary from projects being
West Texas Intermediate (WTI) hit $34.29
multi-year, or the inability to find the right
a barrel, the lowest since February 2009.
0.55 INR/ 1YEN
channeled
to
education,
projects or implementing agencies.
PAGE
5
MARKETS The BSE index ended up with 0.5 percent decrease, while the NSE index closed 0.88 percent lower. Both indexes ended the week largely flat. For the month, the BSE index lost 3.10 percent,
NSE NIFTY
while the NSE index lost 0.7 percent. TOP 5 GAINERS ADANIPORTS IDEA POWERGRID
Open
High
Low
Close
SENSEX
25649.3
25823.04
24952.94
25519.22
NIFTY
7816.55
7850.20
7575.35
7761.95
BSE SENSEX
ASIANPAINT AMBUJACEM
TOP 5 LOSERS VEDL ULTRACEMCO BAJAJ-AUTO SBIN INFY
PAGE
6
CNX NIFTY
FIN-WORD B Y
A B H I S H E K
G U P T A
Death Bond A death bond is a security backed by life
Life settlement provider can scrutinize the
insurance which is derived by pooling together
stream of cash flows over time by pooling the
a number of transferable life insurance policies.
policies and issuing bonds to investors. The
The
investors thus provides cash to the company
life
insurance
policies
are
pooled
together and then repackaged into bonds to be
for these bonds which the
sold to
its business operations and buying more such
investors.
company uses for
policies. How it works?
Companies provide investors coupon payments over a period of time.
Alife settlement provider deals in such bonds. They purchase life insurance policies from
Why it’s useful?
people who no longer want the coverage and
Death Bonds are less affected by standard
want to regain hold of their investments in the
financial risks. The only risk associated with
policies. The
these bonds lies with the underlying insured
return
for
insured person receives cash in their
insurance
The
person. The controversial aspect of this bond is
company then starts making premium payments
that the sooner the person dies, the more is
on the behalf of the seller. The company thus
the return over time for the investors.
creates a large pool of such policies and has
These bonds also help the insurance holders
claims over the death benefits of such policies.
who receive cash and can use it to fund their
People insured with the policies will die at
retirement and pay medical
different times and thus the company
they are alive.
7
ensures
expenses while
a stream of cash flows coming to it. Moreover,
These bonds guarantees that the payments will
these cash flows are not
come which is not the case with every kind of
happenings in the market.
PAGE
policies.
related to the
investment.
PERSONALITY 2 0
D E C
2 0 1 5
The designer duo If Gayatri Gunjal had not found her calling
SNIPPETS
in design and architecture, she would have been wielding a hockey stick or a
Keen on
badminton racquet. “In Class 10, I was a
merging the arts
State-level
and sciences, Gunjal opted for CEPT,
player
and
a
National-level junior hockey player,” says Gunjal, who forfeited a career in sports
Ahmedabad, to study
and propelled by family concerns, pursued
architecture but later moved to
Keen on merging the arts and sciences,
architecture and interiors. Her design for
Gunjal opted for CEPT, Ahmedabad, to
the
study architecture but later moved to NID
Ahmedabad, garnered wide appreciation.
to study industrial design. Later, while
Not enamored by overly opulent styles,
designing
in
Gunjan admires Chennai’s diverse culture.
Bengaluru, Gunjal found the corporate
She says, “I like clean lines and materials
the proud
approach cosmetic and aloof. “I wanted to
without fussy embellishments.” Her home
co-winner of an inventive hi-rise
get my hands messy and do something
is the perfect showcase for her design
physically challenging and more personal.”
philosophy. She transformed a run-down
she designed with Sharan Sundar for the
She then moved to Domus, Milan, to study
penthouse apartment into a cosy living
living design. Over there, she was exposed
space introducing a split-level mezzanine
to diverse practitioners and imbibed the
with a library loft. She extended a pergola
Italian predisposition for design. A chance
over the terrace and opened up the
to work with designer Ferragamo led to
windows of the living room for a wide view
her collaborating on a successful hospitality
of the sea. Gunjal’s personalized style is
endeavor.
evident in details of quirky shelving and a
Back in Chennai, after her first project for
mirror resembling a pineapple wedge. Her
a
passion for nature comes through in
NID to study industrial design.
badminton
Suraksha Bhatia,
2015 eVolo Skyscraper competition.
products
neighbor's
home
for
Kyocera
making
playful
Type
Company, jointly designed with two other
and generous use of wood and stone.
Yellow
Sub
—
for
as
in
interspersed with pebbles in the bathroom
—
textures
office
scored accolades for Old Madras Baking
firm
variegated
Foundry
creating
design 8
Indian
accoutrements for a child’s room, Gunjal
architects. In 2013, she launched her own
PAGE
Gayatri Gunjal
Suraksha Bhatia
academics.
tiles
Driven by a love for the mountains and
analytical
the outdoors, Gunjal is a resilient
architect Ken Yeang ‘father of tropical
trekker. Her most recent trip was a
high-rise design’, who was instrumental in
17,500 feet high climb to the Pin Parvati
developing the bioclimatic skyscraper.
Pass. This need for challenge, meeting
After almost three years in Singapore
obstacles and setting directions has
with a start-up firm, Bhatia returned to
equally emerged in her designs.
practice in Chennai. Her apartment
Contemporary and minimal
designed in a plush and contemporary
“I was always interested in learning how
style speaks for itself. Bhatia opened up
designs on paper transform into living,
smaller windows to get as much natural
breathing spaces”, says architect Suraksha
light in. Her care for durable material
Bhatia, the proud co-winner of an
choices show in details as the black
inventive hi-rise she designed with Sharan
window sections imported from Belgium.
Sundar for the 2015 eVolo Skyscraper
For the living room and bedroom walls,
competition. The ‘Shanty-Scraper’ they
she selected wallpaper with intriguing 2D
designed aims to provide a unique
designs that appear 3D. Most of the
solution
furniture
for
the
fishermen
of
designed
inspiration
by
her
is
and
custom-made at a specialised set-up at
relocation of slums.
Bangalore. Imported classic Barcelona
Bhatia has always been at the cusp of
chairs add a signature touch. The third
design
building
bedroom is converted to a home theatre
envelope. While in her final year in the
with windows acoustically sealed; floors
School of Architecture and Planning,
are laid with laminate composite panels,
Chennai, she found herself researching
which are anti-termite. The red recliner
ecological architecture. “I wanted to
couches were specially ordered through
understand
cinema-furniture fabricators.
trends,
pushing
the
the
science
behind
sustainability and the engineering behind
The entire interior is contemporary and
architecture. How is energy consumed
minimal with a light and airy feel to it.
and water used in a building so people
Bhatia is in the process of setting up her
don’t end up using air-conditioning more
firm, Midori Architects. She aims to
than necessary?”
combine her expertise in environmental
Her postgraduate studies in Sustainable
architectural with design. “With all these
Environmental
the
ideas ingrained, buildings can be designed
of
robustly to perform well for 100 years.
Architecture, U.K. took her down this
At the end of the day design is a
path,
powerful tool to express yourself,” she
learning
Design
Association, to
from School
quantify
daylight,
temperature and energy consumption, to actually rate these parameters with
9
is
Her
Nochikuppam, and addresses the issue of
Architectural
PAGE
tools.
says.
START-UP TRACKER B Y
A B H I N E E T
A U G U S T I N E
ZOOMCAR American duo David Back and Greg Moran, SNIPPETS
met while studying at the University of Pennsylvania, where both graduated from in
Founders: David Back (President) Greg Moran (CEO)
2007. While Back studied at Harvard Law School and Moran worked on energy financing projects. The pair also went on to business school
Headcount: 50+
with
full
scholarships,
Moran
at
the University of Southern California and Back
Industry: Personal
at the Judge Business School at Cambridge
Funders Club, Basset Investment Group and
transportation
University.
private angel investors.
Back and Moran both dropped out to move to
Zoom partners with the auto manufacturers
India
officially
like Ford & Mahindra which allowed them to
launched operations in Bangalore in 2013.
become the first car rental company in India to
Zoom started with a fleet of seven cars. As of
offer an electric vehicle (the Mahindra REVA
October 2014, Zoom operates more than 250
E2O by Mahindra) and the Ford EcoSport
cars in Bangalore.
"urban SUV by Ford� in 2013. Zoom also works
Zoom's Board of Directors include Graham
with locally established real estate developers,
Gullans, co-founder of Empire Angels. Zoom's
universities, hotels, and corporate IT parks to
Board of Advisors includes former United
secure parking for its vehicles and offer pick-up
States Treasury Secretary and former Director
points to its members.
of the United States National Economic
In November 2013, Zoom, Uber (a cab booking
Council, Larry Summers, and Chair of the UK's
mobile
Pension Protection Fund and former US SEC
Foundation came together and launched a
Commissioner Lady Barbara Judge. Back met
month-long
Summers at Harvard University, where Back
RideSmartBLR to encourage car-rental and
was a teaching assistant to Summers.
discourage
Zoom has raised a total of ~$3 million in equity
economical and environmental benefits.
capital. It raised a $1.5M seed round led by
Zoom
New York investment network Empire Angels,
Accelerator Plus program in Bangalore. This
with the proceeds going toward technology,
program is designed to provide more tailored
hiring, and an expanding fleet. Investors
assistance to later-stage start-ups as they scale
included the San Francisco-based VC firm
their business and raise capital .
PAGE
10
and pursue
Zoom. Zoom
app
was
provider) campaign drunk a
and in
driving
the
Bangalore for
member
of
its
Ashoka called health,
Microsoft's
OUR SPONSORS
PAGE
11