The Finance Club of IMT Ghaziabad is engaged in a continuous endeavor to provide you with a practical exposure to the world of finance and the latest emerging trends in the related fields of Risk Management, Banking, Investments and nonfinance topics.
SEPTEMBER, 21 | 2014 | A FINNICHE INITIATIVE
India-China Collaboration | 2
Do write to us at: finniche.imt@gmail.com
Who is the Mighty Conqueror | 4
Buck the Trend | 6
Sundar Pichai |11 iPhone 6 : Is Bigger the Better? |12
September, 21 | 2014 | Volume 13
With the whole campus engulfed in a sports frenzy, people digging out their rackets, balls and practicing day in and day out to achieve victory, we bring to you another edition of our weekly magazine FinXpress. India China Collaboration
We welcome the LSIP students of Senior Batch. This week, the In Focus section talks about ‘India China Collaboration’. The Opinion answers the question, ‘Who is the Mighty
Who is the Mighty Conqueror
Conqueror’ which is about effects of stable government on the Indian economy. The term of the week describes “Buck The Trend" - market driven price moves in the direction opposite to the broad market and competition. Do have a look at the market section, news and Tech World which brings to you iPhone 6: The Bigger the Better.
Buck the Trend
Club FinNiche welcomes any comments, suggestions or criticism regarding the magazine. Please do write to us and share your ideas. Happy Reading! Regards Sundar Pichai
The Editorial Team Club FinNiche
iPhone 6: Is bigger the better?
Disclaimer: FinXpress takes no responsibility for the opinions expressed in the magazine.
- By Abhilasha Shukla
India was referring to was the fresh incursion of Chinese army in the Chumar area even as the talks were on.
$20 Billion to be invested by Chinese government into Indi-
Xi pledged to invest $20 billion into Indian
an market over next 5 years.
economy in the next 5 years in various infrastructure and manufacturing projects. 12 agreements were signed for setting up industrial
Strategic partners to address
parks in country and speeding up of the existing
the issue of soaring trade defi-
railway network. 24 MOUs worth $3.4 billion
cit
were signed. Both countries pledged to improve cultural ties. China will also help in developing Chinese
President,
recently
India’s rusty rail network. They will help in
visited India with his wife Peng Liyuan and met
increasing speed of the existing railway line
Indian Prime Minister, Narendra Modi to discuss
from Chennai to Mysore via Bangalore. For this
various
a
Chinese side will provide training to 100 Indian
Rashtrapati
railway officials. The other proposal is that the
Bhawan. He also had a grand welcome at
two sides will work together for redevelopment
Modi’s own city Ahmedabad. Xi appeared to be
of existing railway stations and setting up of a
a lot friendlier and open-minded than his
new railway university. A wide range of topics
predecessor, Hu Jintao who had an image of
were discussed in the one-on-one meeting of
never ever speaking to a child in public.
Indian Prime Minister and Chinese President as
Bilateral
ceremonial
Xi
issues.
reception
at
Jinping
He the
received
they agreed to “deepen their relationship”. Chinese president has agreed to resolve the border dispute with India at the earliest to bring
Ever increasing India-China trade deficit against
peace among the two countries. Since the
India has been a major concern. The issue of
border is not demarcated, Xi said, there should
soaring trade deficit was highlighted in strongest
be some collaboration between two countries to
terms. Prime minister sought approval of
effectively
border-related
various Indian products and services for exports
mechanisms so that they do not have a large
as well as easy investment opportunities for
impact on bilateral relations. The latest incident
Indian businesses. An agreement was signed
manage
through
between Indian Commerce & Industry Minister, Development
of
agriculture,
infrastructure and railway sector.
Nirmala
Sitharaman
and
her
Chinese
counterpart, Gao Hucheng to address the problem of trade deficit by enhancing Indian agriculture
and
pharmaceuticals
products
besides services. On the same lines, India asked for export approval of 5 Indian vegetables 2005 pact to be used as guideline to address the issue of border dispute
and fruits including Mango, which is granted by China. In last 10 years China has invested just $400 Million in India which is to increase to about $20 billion in the next five years excluding the increase in bilateral trades. India and China have agreed to solve their long
Both countries will look into various economic
standing border dispute by the Parameters and
areas to solve the problem of rising trade deficit
Guiding Principle for the Settlement of the
of India. These areas include industrial sector,
Boundary
infrastructure
Questions,
a
pact
that
two
sector,
railway
development,
governments signed in April 2005. Both sides
energy conservation, environment protection,
will also hold talks on civil nuclear agreement in
sustainable development and many more. India
order to expand their civil nuclear energy. The
and China will enter into joint venture to
follow up of this 2005 act would be in the
promote building of smart cities. In this regard,
strategic and reasonable interest of both the
Finance Ministry’s department of Economic
parties. This would safeguard the interest of
affairs and China’s development Research
population in the border areas. Both sides
Center of State council will collaborate to make
committed to the early settlement of border
sure that the desired results are met.
dispute. Relations of India and China, two major The pact said that regular visits by defense
economies of the world, have taken a new turn
ministries and defense leaders of both the
in this optimistic global environment and there is
countries will take place in future.
hope to receive positive results in future.
- by Aditya Sai Daga
adverse manner. The growth Indian economy has observed ever since the
But why has this epic run occurred? Was it
stable
being
because of the NaMo effect? Well, experts
formed for decision making
draft a view on NaMo being the prime mover
process.
but the underlying facts speak much more
government
about the supplements as well. The effect was adverse but it was well supplemented by the promising youth of the nation and the industries who were geared up to perform.
The
industrial
growth
was
registered
immediately along with policy reforms that were pitched in. The financials started an A few months back there were two animals be-
uptrend and so did the talks. There were
ing spoken about, “The Bull” and “The Bear”.
heavy amounts of cash inflows in the
But nowadays it’s “The Bulls” all around. Where
economy where individuals started to utilize
has “The Bear” gone? Has he gone into his
the opportunity.
sleep hours after consuming a lot? Is he waiting to search for the right prey at the right time?
Who gained the most?
Speculations are many, but the answers are
The short term investors who believed in the
few.
bull run have multiplied their money. Here
short term is referred to as the 3-6 months The markets have performed their wit out with
players. There are other absorbents as well.
the crunching figures and munching times for
They are the intraday traders, the Mighty
the traders. The growth in the index which was
Conquerors indeed.
recorded to as high as 28% has shown the way they are going to progress forward. The forward
Intraday Traders
troll has led the world with an example. The well
The clever traders who anticipate and read
waited run has demolished the losses incurred
the lines of newspaper gained in the short
for several years. New infrastructures have
term. But the smart intraday traders who
changed the priorities. And indeed all these
have the ability to read between the lines
have given an impact on the bullish run in an
have gained even more.
NaMo and the youth. Although the Indian economy is an integration of Individual, Government,
Corporates
and
Imports-
The criterion of early sell with-
Exports, yet the effect of the second sector is
out any stock in-hand when
prevalent and dominant. Well if this is our
anticipating a fall.
strength then lets enhance it. But let us not leave the other two drivers as well alone. The integration channel would be channelized only when the three sectors work for the individual’s development and in integration,
Index that is to be tracked on
the individual contributes his services for the
NSE India or BSE India websites to know the industry per-
formance and the peers.
remaining three.
Where is it leading?
The intraday players have capitalized on the adverse situation and realized that it was the
If you feel that you cannot directly make the
right time for them to cover the losses they
big amounts from the conventional cubical,
have incurred due to the regular fall. They
then there is another way which may be
have conquered the epitome of economic
capitalized on to explore and earn some
development
the
money at the right time. It’s more of your
Financial
logic and common sense which takes the
Services and Banking have performed well for
common man ahead and earn some good
the
intraday
money. Indeed he would develop and there
movements do leave a speculation in the
after the NaMo effect may also be boasted
minds of players who doubt the movement as
about.
pharmaceutical past
-
the
automobile
sectors.
six months
but
The their
and
there has been a sentiment of global economy affecting the stock prices. The recent Fed talks
Hence, you are the Mighty Conqueror. It’s all
speculated the US Markets which in process
dependent on you. Where you fit yourself? If
had shown effects on Indian Markets as well.
you fit yourself right in the right place and at the right time then it’s all hail if not it is all in
Well here comes the last query of the opinion.
vain. Let the instincts work more and
When will the Indian Markets be able to drive
sharpen them till you train yourself and
the other foreign markets on regular basis?
search for the right choice where you fit into
The answer lies on where we started, the
not where someone else would like you to.
- By Shikha Sharma
trend describes an individual or company’s actions, which means whether an investor is When
market-driven
price
outperforming in a poor securities market or
move in the opposite direction
if a company’s stock is doing better than the
of the broad market .
status-quo. In most cases, the term applies when an overall market is moving upward or a group of securities are in constant rise or
Investors are attracted to the
vice-versa. An individual can buck the trend
stock
negativity
by investing in stocks doing well despite the
competitors
prevailing cycle. Those who can make
despite
surrounding
its
money in down markets are often regarded
and peers.
as valuable investors. As the name suggests, going against the prevailing trend or norm is called buck the
Investor uses a stock’s chart history to define
trend. In simple words, buck the trend is to
future movements in price. Individuals use
have a noticeably different opinion, against
charts to buck the trend for investor stocks.
the
grain,
to
be
an
exception
from the way that a situation is developing .
Another example, a stock’s price may be increasing simply because the rich market is
For example, spending is down this season,
pulling the price up due to decreased stock
but the tourist industry is managing to buck
sales. Investors who give up on a trend in
the trend and book the tickets to visit places.
the chart may go short in hopes of a future
stock price fall; this is known as being Further, financial industry - in a trending
bearish.
market scenario, or even in a Flat Market - if stocks or assets move against the current
In bearish market the investors who have
trend, it is an example of buck the trend.
invested in rising stocks make profit and
Thus, a stock moving downward in a bull
buck the trend. Whereas, in the current
market is bucking the trend.
scenario when the market is bullish, the individuals who have invested in stocks
In connection with financial matters, buck the
moving down, buck the trend making loss.
INDIAN MARKETS The week started with Sensex reaching 26998.07 points and Nifty reaching 8070.35. The market reached its biggest single day gains in more than 3 months, mainly buoyed by the US Fed decision of not cutting down its interest rates. The upsurge in market is also stimulated by the
optimism over India and China trade ties, though China dashed the $100-bn dollar hope to $20-bn for 5 years. With the increase in strategic ties, analysts hope that India will be at a better Market turns defensive on Fed
position to bear the shocks emanating from US federal interest rate rise.
scare, BJP debacle
BSE
expects
to
list
100
companies on its SME platform
Open
High
Low
Close
SENSEX
26998.07
27223.59
26477.57
27106.00
NIFTY
8070.35
8155.25
7927.80
8121.45
by Dec-end.
BSE SENSEX Crude
falls
on
supply
concerns, US dollar’s advance.
CNX NIFTY
COMMODITIES
Global
shares
flat,
Commodity
Unit
Rs / Unit
% Change
Gold
10 grams
26520.00
-0.52
Silver
1 kg
39771.00
-2.95
Crude Oil
1 bbl
5605.00
-0.62
though
Alibaba rallies in debut.
EXCHANGE RATES INR/ 1 USD
60.82
INR /1 EURO
78.10
INR/ 100 JAPAN YEN
56.00
INR / 1 POUND STERLING
99.27
Market shows relief on “NO” vote in Scotland.
India’s forex reserves down USD 1.61 bn to USD 315.69 bn.
INTERNATIONAL MARKETS Open
High
Low
Close
NYSE Comp
10890.73
11044.72
10890.73
10986.28
NASDAQ
4530.56
4608.13
4508.60
4573.64
S&P 500
1983.40
2017.90
1979.90
2010.20
FTSE 100
6776.80
6875.80
6750.30
6837.92
CAC 40
4423.50
4488.50
4396.00
4461.22
DAX
9630.80
9889.50
9599.50
9799.26
NIKKEI 225
15909.50
16359.50
15869.50
16321.17
SSE 50
2331.95
2646.66
2284.54
2329.45
Hang Seng
24431.00
24469.00
24109.48
24306.16
Alibaba IPO prices at top of range, raising $21.8 billion Alibaba Group Holding priced its initial public offering at $68 a share, the top end of the expected range, raising $21.8 billion on Thursday, in the latest sign of strong investor appetite for the Chinese e-commerce juggernaut. At that price, the IPO, one of the largest-ever, would give
Alibaba a market valuation of $167.6 billion, surpassing American corporate icons from Walt Disney Co to Boeing Co. The offering also vaults it atop U.S. e-commerce rivals like Amazon and eBay and gives it more financial firepower to expand in the United States and other markets. With its launch in India, the Coca-Cola Zero brand is now
UCO Bank examines ways to declare Kingfisher Airlines wilful defaulter
available in all the top six markets
of
Coca-Cola
State-run lender UCO Bank is examining its options on how to declare Kingfisher Airlines a wilful
Company, the others being
defaulter, chairman and managing director Arun Kaul said on Friday. "We are examining the
USA, Mexico, China, Brazil and
possibility," Kaul said on the side-lines of an event organised by the Confederation of Indian
Japan.
soft
Industry (CII) in Kolkata. UCO Bank, which has an exposure of about Rs. 300 crore to the airline,
drink will be available in 100
is one of 17 lenders to whom Kingfisher Airlines owes money. The now-grounded airline
cities from October 5.
borrowed over Rs 6,500 crore from various lenders. UBI has already declared Kingfisher Airlines
The
The
sugar-free
a wilful defaulter while SBI has sent it a show-cause notice asking why it should not be named a wilful defaulter. The airline company has contested the moves. Nepal Clears GMR Plan for $1.4 Billion Hydroelectric Plant India shows a price increase of 3.8%
over
the
last
12
months; Dubai took the top slot and registered 24% growth in the same period.
Nepal's cabinet on Thursday cleared the way for Indian firm GMR to build a $1.4 billion hydroelectric plant in the northwest of the country, a cabinet minister said, the Himalayan republic's biggest foreign investment scheme. The Nepalese government agreed to allow GMR in 2008 to construct the 900-megawatt Upper Karnali hydroelectric power plant in the northwest. Law Minister Narahari Acharya said a cabinet meeting had approved the draft of an agreement to
be signed with the Indian company. "This approval will open the way for different foreign investment projects that are in the pipeline to move ahead," Acharya told Reuters after a cabinet meeting. Deficit rains likely to hit kharif foodgrain output by 7% India's food grain production is projected to drop by 7 per cent to 120.27 million tonnes in the kharif season of this year due to poor monsoon rains. Food grain output was 129.24 MT in the kharif (summer) season of the 2013-14 crop year (July-June). On account of 12 per cent deficit in rains so far, total area covered under kharif crops is lower by 3 per cent from last year.
RBI caution banks on Jan Dhan Yojana accounts The Reserve Bank warned the banks to be more careful while opening accounts under the Jan Dhan Yojana, saying that a single individual could open multiple accounts in the lure of Rs. 1 lakh insurance cover. “There are some caveats when the banks are implementing the financial
inclusion scheme under the recently launched Jan Dhan programme,” RBI Executive Director P Vijay Bhaskar said at a CII seminar. He said people could open accounts in different banks using different identity documents like PAN card, Aadhar among others in the lure of getting insurance cover of Rs. 1 lakh from all the banks. The banks should have a single information sharing system Shares
of
Suzlon
by which this possible misuse could be stopped.
Energy slumped 10 per cent after fresh shares allotted on
Norms for realty investment trust to be notified soon: SEBI
conversion of foreign currency convertible bonds (FCCBs) of
With an aim to attract greater foreign and domestic investments into real estate, SEBI said it will
the company began to trade on
soon notify norms for creation and listing of business trusts for this key sector. Two separate
Friday. Suzlon's stock tumbled
committees have been set-up for the specific guidelines on the issue. Addressing a conference
9.93 per cent to Rs. 20.40, its
organised by ASSOCHAM, SEBI Executive Director Ananta Barua said: "We will soon notify the
lowest trading permissible limit
new norms on Real Estate Investment Trusts or REITs.
of the day on the BSE.
China fines GlaxoSmithKline US $489 million for bribery GlaxoSmithKline (GSK), the British pharmaceutical giant, was on Friday fined US $489 million, the biggest-ever penalty given by a Chinese court, for bribing doctors in China to boost sales. The Gold prices hit a three-month low of Rs. 27,010 per ten gram on Friday due to heavy selling by stockists, triggered by a weakening global trend.
Changsha Intermediate People's Court in central China's Hunan Province imposed a fine of 3 billion yuan (US $489 million) on the Chinese branch of GSK while sentencing its manager, a British national, to three years in prison. Following Friday's closed-door trial of the bribery case involving GSK China, the court ruled the firm was guilty of bribing personnel in the business and
imposed the fine, China's official Xinhua news agency reported. KMAMC to acquire schemes of PineBridge Mutual Fund Kotak Mahindra Asset Management Company, a wholly-owned subsidiary of Kotak Mahindra Bank Limited, has executed a definitive agreement to acquire the domestic schemes of PineBridge Mutual Fund (PBI MF), subject to regulatory approvals. PBI MF is managed by PineBridge Investments Asset Management Company (India) Private Limited. The assets included are equity-oriented. “We have an appetite for further acquisitions which can create value for us and we would be keen to consider such opportunities," KMBL President-Asset Management, Life Insurance and International Business, Gaurang Shah said.
- By
Rishabh Agarwal
Prior to joining Google in 2004, he worked for 1972
McKinsey.
He
joined
as
the
Vice-President of the Product Management and is said to be the man behind the creation of IIT Kharagpur
Google Chrome. Pichai has always been known
Stanford University
for his hard work and intelligence. His teachers
The Wharton School
from IIT Kharagpur have mentioned in the past that he always was the topper in his batch. His intelligence was even praised by the CEO of Google, Larry Page. He has the ability of
McKinsey & Co.
making new things and keeping it simple. He always has a deep technical expertise and a vision for his products. He
also has a
tremendous entrepreneurial flair. This rare On 13 March 2013, Google suffered a huge
combination of attributes make him stand out as
blow when Andy Rubin stepped down as the
a strong leader. So, he is seen by many Google
executive in charge of its Android operating
employees as the next CEO. As mentioned by
system for smartphones and tablet computers.
his colleagues, he is a very good team player
An Indian Businessman, Pichai Sundararajan
and an emphatic leader.
(better known as Sundar Pichai) was then appointed as an executive in charge of the
Recently Google launched Android One phones
company's Chrome Web browser and operating
at a reasonable price of $100 to start with. With
system for lightweight laptop computers.
this Google is trying to enter the uncovered segment in the Indian market. Sundar Pichai is
He was born and brought up in the southern
said to have been the man behind this idea.
state of India, Tamil Nadu. He graduated as an
Google has a plan of expanding this to all other
Engineer from Indian Institute of Technology,
countries of Asia. This is a challenge lying
Kharagpur. He was named a Siebel Scholar
ahead for him. However, another challenge for
and a Palmer Scholar during his MBA from
him would be bringing Google’s Chrome book’s
Wharton School. He also holds a MS degree
laptop in the mainstream. He also serves as a
from Stanford University.
Member of Board of Advisors at Ruba, Inc.
- By
Abhinav Agarwal
"Focus Pixel" technology, which improves the
phone's ability to select autofocus points. Retina HD Display
iPhone 6 is the big release for
The phone uses ion-strengthened glass with an
Apple this year
improved polarizer, a photo aligned IPS liquid crystal
Technical modifications
with
look and feel advancements.
with
almost
a
finger
resistant
The two kinds of batteries 1810 mAh and 2915
same
Apple iPhone 6 released a 4.7 and a 5.5 inch
mAh makes the phone life better with addition of
screen plus version. iPhone 6 has been launched
10 more hours in comparison with the previous
to satisfy the increasing demands of loyal Apple
versions.
specification in lower budget
customers for a bigger size phone than the
can be a tough competitor.
existing ones.
Brand Loyalty will play a very big role
and
Battery Life
IOS 8 the game changer
Nexus
display
oleo phobic coating.
Operating System To increase the continuity and seamless transition
Technical Specifications
between the other i-devices, Apple has included
Like iPhone 5 and 4, iPhone 6 also uses
IOS8
Qualcomm 4G LTE modem and homemade main
notifications, third party keyboard and new quick
processor ‘A8 chip’ which has been made in
time predictive keyboard has made key and
collaboration with ARM holdings. The phone also
prominent improvements to the device.
that
includes
features
like
interactive
has a Wi-Fi module by Murata and a touchscreen controller by Broadcom. Albeit rumors that
The Road Ahead
scratch resistant Sapphire glass will be used, the
With increase in competition from Google Nexus
plan was scrapped at the last moment.
which caters almost the same specifications in a much affordable price, Apple can bank upon their
Unlike the previous versions, iPhone 6 contains a
brand value and loyal consumer base. But the
NAND memory chip made by SK Hynix which can
launch shows a completely different picture with
be used for storing music and images. Both
share prices falling on the big day. The main
phones have got some major improvement in
tangible change in the phone has just been the
camera in the form of sensor upgrades, improved
look and feel which drives to a much conclusive
tone mapping, better noise reduction, and new
statement or rather question: Is bigger the better?