Financial focus Weekly Newsletter

InFINeeti

ISSUE 1 2014 Volume 2

TOP STORIES…………….1 MARKET ACTIVITY…..….2

ECONOMICS.………....….3

TERM OF THE WEEK ….. 4 POLICY RATES AND

MARKET UPDATES….….. 5

WARREN BUFFETT

MANAGEMENT RULES…. 5

A o n e s t o p g u i d e t o k n ow a b o u t a l l t h e r e c e n t h a p p e n i n g s i n t h e f i n a n c i a l w o r l d

TOP STORIES : INDIA

MAIDEN BUDGET TARGETS HUGE ASSET SALES

As per a senior government source the government will seek to raise up to a record $11.7 billion in asset sales in its maiden budget.

"The finance ministry has approached different ministries to increase the divestment target," said the senior official with direct knowledge of the budget process. The previous government had pencilled in sell-off proceeds

of 569 billion rupees. Read more...

Financial focus

FDI IN SENSITIVE AREAS OF INDIAN RAILWAYS – HOME MIN ISTRY RAISES OBJECTIONS

The Home Ministry has raised objections in allowing foreign direct invest-ment in highly-sensitive areas of the Railways sector, saying such a move may compromise security of the country's largest transportation network. "There should not be FDI in highly sensitive parts of the railways," a Home Ministry official told PTI.he objection came after the Commerce and Indus-try Ministry circulated a draft cabinet note for inter-ministerial consulta-tions proposing 100 per cent FDI in areas such as high-speed train systems

and dedicated freight lines. Read more...

PREVIOUS GOVERNMENTS LEFTOVER – A HIGH FISCAL DEFICIT

A high fiscal deficit is what Arun Jaitley has to deal with as a leftover from the previous government. Roll over was what the government did, payments which would have ideally come in towards the end of the previous financial year.

For instance, the petroleum ministry saw its expenditure for the first two

months of this year coming in at 39% of its annual budget. Read more...

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DOW ABOVE 17000 AFTER STRONG JOBS REPORT

Dow Jones Industrial average soared beyond 17000 on the report of new job creation report from the Fed. The market seems to be bullish and peo-ple are hoping that the trend continues.

If the trend continues in the medium term then it will be good news for the job market as the strong stock market sentiments will help spur the economy which is going through tough phase from past few years. ReadMore...

NIFTY LIKELY TO TOUCH 8650 PTS BY YEAR END: RBS

RBS private wealth sees India as “strong market” for gains and has predict-ed that owing to government’s reform measures and few credible options within emerging markets, Nifty is likely to touch 8650 pts by December.

In January RBS had made year end estimate of 7700 pts but has revised it

upwards citing “Bull Run” as the major reason. Read more...

TOP STORIES : WORLD

US UNEMPLOYMENT FALLS TO 6.1% - FIRST TIME SINCE 2008

US unemployment rate for the month of June is quoted as 6.1% as US adds 288000 jobs . This is first time since September 2008 when the unemploy-ment rates was this low. September 2008 is also significant because that is the exact time when Lehman Brothers collapsed.

Since then US Fed has kept interest rates bare minimum and have pursued a policy of quantitative easing. The current unemployment rates may help the

Fed to change their policy for the future .Read more...

ECB ISSUES FORWARD GUIDANCE ON RATES

ECB president Mario Draghi has said that Eurozone interest rates will stay at 0.15% for an “extended period” of time. Bank had cut deposit rates from 0 to -0.10% and benchmark rate from 0.25% to 0.15% to boost the economy by incentivizing the banks to lend more.

According to the ECB president the major reason to keep the interest rates

at their present level is due to current outlook of inflation. Read more...

HOUSING PRICES ‘BIGGEST RISK’ TO UK ECONOMY

Bank of England deputy governor Sir Jon Cunliffe has told BBC in an inter-view that housing market poses biggest risk to UK economy. He identified the main reason as “prices rising faster than people’s income”. He added that “This leads to a big increase in amount of debt on the economy”.

He maintained that sustained rise in housing prices will pose a threat to UK

economy. Read more...

MARKET ACTIVITY

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SENSEX LOSES 518 POINTS; NIFTY FALLS MORE THAN 2%

The BSE Sensex and the Nifty slump slump more than 2 per cent on Tuesday. Both the indexes hit a record high earlier in the session. The Nifty gained as much as 0.28 per cent to touch a record high for the fourth straight session, hitting the 7,800 mark for the first time. Sensex fell 517.97 points to 25,582.11 points while Nifty fell 163 points to 7,623

points. Read more...

ECONOMICS

INDIA'S FOREX RESERVES RISE TO $315.78 BILLION AS OF JUNE 27 - RBI

India's foreign exchange reserves rose to $315.78 billion as of June 27 com-pared with $314.92 billion in the week earlier, the Reserve Bank of India (RBI) said on Friday. Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its re-

serves, the RBI said in its weekly statistical supplement.Read more...

ALLOW PENSION MONEY IN MFS: SEBI ASKS GOVERNMENT

Market regulator Securities and Exchange Board of India (SEBI) has asked the government to allow domestic pension funds to invest in equities through asset management companies, when it announces the 2014/15 budget. It

could prove crucial for MF industry.Read more...

NO INFORMATION RECEIVED ON SWISS "BLACK MONEY" - JAITLEY

The government has not received any communication from Switzerland about "black money" suspected to be stashed in Swiss banks, Finance Min-ister Arun Jaitley said on Monday.

Jaitley's comments followed media reports that Switzerland has prepared a list of names of Indian account holders who they suspect of not paying taxes. Jaitley said he was writing to the Swiss authorities for more infor-

mation.Read More...

INDIA HAS THE WORLD’S THIRD LARGEST ROAD NETWORK

India has the world's third largest road network, covering more than 4.3

million kilometers and carrying 60 per cent freight and 87 per cent passen-

ger traffic.

Source::http://www.rediff.com/business/slide-show/slide-show-1-special-25-interesting-facts-you-must-know-about-the-indian-economy-/20130808.htm#10

DID YOU KNOW ?

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TERM OF THE WEEK

GROSS DOMESTIC PRODUCT

WHAT IS GDP?

The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consump-tion, government outlays, investments and exports less imports that occur within a defined territory. GDP = C + G + I + NX where: "C" is equal to all private consumption, or consumer spending, in a nation's economy "G" is the sum of government spending "I" is the sum of all the country's businesses spending on capital "NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

WHAT IT MEANS FOR INVESTORS?

Real GDP is the one indicator that says the most about the health of the economy and the advance release will almost always move markets. It is by far the most followed, discussed and digested indicator out there - useful for economists, analysts, investors and policy makers. The general consensus is that 2.5-3.5% per year growth in real GDP is the range of best overall benefit; enough to provide for corporate profit and jobs growth yet moderate enough to not incite undue inflationary concerns. If the economy is just coming out of recession, it is OK for the GDP figure to jump into the 6-8% range briefly, but investors will look for the long-term rate to stay near the 3% level. The general definition of an economic recession is two consecutive quarters of nega-tive GDP growth

You can read in more detail at the below link:-

Source :- http://www.investopedia.com/university/releases/gdp.asp

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InFINeeti Team

POLICY RATES AND MARKET UPDATES

DATE :- 08/07/2014

WARREN BUFFET MANAGEMENT RULES : RULE 2 In line with Berkshire’s owner-orientation, most of our directors have a major portion of their net worth invested in the company. We eat our own cooking. Charlie’s family has 80% or more of its net worth in Berkshire shares; I have more than 98%. In addition, many of my relatives – my sisters and cousins, for example – keep a huge portion of their net worth in Berkshire stock. Charlie and I feel totally comfortable with this eggs-in-one-basket situation because Berkshire itself owns a wide variety of truly extraordinary businesses. Indeed, we believe that Berkshire is close to being unique in the quality and diversity of the businesses in which it owns either a controlling interest or a minority interest of significance. Charlie and I cannot promise you results. But we can guarantee that your financial fortunes will move in lockstep with ours for whatever period of time you elect to be our partner. We have no interest in large salaries or options or other means of gaining an “edge” over you. We want to make money only when our partners do and in exactly the same pro-portion. Moreover, when I do something dumb, I want you to be able to derive some solace from the fact that my fi-nancial suffering is proportional to yours.

BANK RATE 9.00

REPO RATE 8.00

REVERSE REPO RATE 7.00

MARGINAL STANDING FACILITY RATE 9.00

SENSEX 25,582.11

NIFTY 7623

Ankit Tiwari | 9674650102

Ashutosh Deshpande |9088104827

Sanket Tandon | 8697912131

Sobhit Agarwal | 8697912181