Chaanakya Chaanakya Chaanakya Chaanakya: National Headlines
Chaanakya Chaanakya Chaanakya Chaanakya: National Headlines
Chaanakya Chaanakya Chaanakya Chaanakya: National Headlines
Volume 2, Issue 16
Wealth Incorporation Christ University Institute of Management Finance Club Initiative Presents...
CHAANAKYA
Issue Attractions
National Headlines International Headline Corporate Interview Company Review/Buzz Words
Crossword/Quiz Investors Check Stock Ratnas Quiz/Crossword Answers Comments
Repo Rate-7.5% IIP - 6% Reverse Repo- 6%, Forex Reserves-$251.37bn CRR- 5.5%, Inflation Rate - 8.98%
There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else. John D
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Rockefeller
National Headlines
Cabinet
okays bill to raise FDI in insurance to 49%. in talks to buy lotus AMC. defaults on lease rentals for 4 jets.
Religare Wipro
Kingfisher Ban
Some
foreign banks stop gold supply to Indian counterparts in a bid to cut exposure to Asian Counterparts. competes for $50 million stake in Deccan Cargo. Minister asked DoT to auction 3G licenses in all zones.
ADAG
15 days Movements
10650 10500 10350 10200 10050 9900 9750 9600 9450 9300 4 6 10 11 12 14
Finance ICVL to
Sensex
Sensex
take 10% stake in Australian mining Company Gloucester Resources. plans to start co-operative dairy venture in Bihar.
ITC
Gold(per gram)
1200 1160 1120 1080 1040 1000 3 4 5 6 10 11 12 14
Gold(per gram)
International Headlines
Barack Obama elected 44th President of USA. Britain lifts ban on nuclear technology exports to India. German economy enters worst recession in 12 years. The global hedge fund industry lost $100 billion of assets in October. FIPB bars land resale by realtors with foreign joint ventures. Lupin to launch cardiac drug to tap Rs 3,600-crore market. RBI offers forex liquidity to Indian banks abroad.
Oil(per bbl)
3200 3100 3000 2900 2800 2700 2600 3 4 5 6 10 11 12 14
Oil(per bbl)
Rs/$
Rs/$
Success is a lousy teacher. It seduces smart people into thinking they can't lose.-Bill Gates
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Go as far as you can see; when you get there, you'll be able to see farther.- J.P.MORGA
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Wipro reported a profit of Rs.9.96 billion ($203 million) for the second quarter of this financial year ended Sep 30, recording a 30 percent year-on-year growth to beat its own projection. IT Services revenue in dollar terms was $1.11 billion, showing a 4 percent sequential growth and 29 percent year-on-year growth. In rupee terms, revenue stood at Rs.47.50 billion, a year-on-year growth of 36 percent. Corporate Culture
Wipro makes working an enjoyable experience by providing a right balance between work and fun. Informal dress and vibrant weekends mix with a sense of teamwork inculcated from the very beginning. Initiatives like 360 degrees appraisal system and skip level feedback encourage feedback at all levels. W ipro strives to provide an environment that is stimulating with high levels of motivation, empowerment and recognition, removing obstacles that hinder creativity. In this energized atmosphere they share success while setting new standards of excellence.
Careers at Wipro
Development and Training E Learning Educational Tie-ups Wipro Leaders Program WIBGYOR (Competency Framework) ENCORE For individual growth and overall development. Through Virtual Campus, with an objective to build a vast learning community on the net. With some elite institutions for employees to grow at every step. For grooming your technical talents and also bring out the leader in you. That defines the behavioral competencies that need to be demonstrated. A basket of rewards recognizing a significant contribution from every employee.
Buzz Word
purchasing stocks following a decline in prices. single traded price is unavailable because of the rapid and large number of transactions occurring in the pit or ring.
Buy The Dips - A slang phrase regarding the practice of Our favourite holding period is forever.Warren Buffett, American Investor material objects; it is about men, their meanings and actions., Ludwig Von Mises, Austrian Economist
Book Quotes:
Fast Tape - A type of Futures Market that occurs when a Economics is not about things and tangible
Blue Chip Swap - A domestic investor purchases a foreign asset and then transfers that asset to a domestic bank It's not your salary that makes you rich, it's branch located offshore. your spending habits., Charles A. Jaffe, American, Senior columnist at Marketwatch
CROSSWORD:
Down
1. The percentage of fixed costs in a company's cost structure. 2.The common stock of a brand name company that has a long record of profitable growth and/or dividend payments, stable management, and a dominant position in its industry. 4.The total value of assets under management by a money manager or serviced by a financial advisor. 7. The name for the common currency of most European countries.
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Did you Know? million in U.S. Government bonds that were issued in 1790 to refinance Revolutionary War debt were the first publicly traded securities in the U.S.
The $80
Across
3. A negotiable certificate of deposit representing one or more shares with a face value denominated in US dollars and the dividends of which are also paid in US dollars. 5. The Federal Reserve Board makes decisions that impact money supply which in turn impacts interest rates, economic growth rates, and the money supply. 6. A strategy that is used in securities trading and portfolio management to reduce the risk of large losses by investing in securities that move in the opposite direction of other holdings. 8. Base rate that banks use in pricing loans for their most creditworthy customers. 9. A process undertaken by a company in an attempt to reduce its financial leverage.
Honolulu Stock Exchange which operated from 1910 to 1976 in Hawaii was the first stock exchange to be operated on American soil in the pacific ocean. Funds were first sold in the US in the 1920s. They were then called investment trusts and often were sold by unscrupulous brokers. In 1929 over $2 billion was invested.
Mutual
Quiz:
Q1.Which company does the Union Bank of India plans to have a joint venture with to form an asset management company? Q2.Which bank has a credit card branded Ascent? Q3.What is a yen-denominated bond that is issued in Japan by a nonJapanese company, called? Q4.A measure used by stock exchanges to avert panic selling?
The
First US Income Tax ran from 1861-1872. It was designed to pay for the Civil War and was a tax of 3% of income in excess of $800.
Q5.A state of the economy where the rampant borrowing of money Martha Washington causes consumers, businesses and the government to be over was the only first lady indebted which results in widespread bankruptcy and financial crisis. to appear on U.S. Q6.What is the term used for the avoidance of both inflation and high appeared on a $1 interest rates as well as a recession as an economy slows its growth silver certificate in rate? 1886 and 1891, as well as on the back of Q7.What stock has CASH for its symbol? the $1 silver Q8.Name the country which first employed credit rationing as an certificate in 1896. instrument of credit control? Charity is injurious unless it helps the recipient to become independent of it. - Sam Walton
currency. She
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INVESTORS CHECK
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. Contd.
covered call strategy. The investor purchases an index future and then sells the equivalent number of monthly call-option contracts on the same index. It allows the broker to use the long futures contracts as security for the covered calls. However, the mechanics of buying and holding a futures contract are very different from that of holding stock in a retail brokerage account. Instead of maintaining equity in an account, a cash account is held that serves as security for the index future, and gains and losses are settled every market day. The benefit is a higher leverage ratio, often as high as 20 for broad indexes, which creates tremendous capital efficiency. However, the burden is on the investor to ensure that they maintain sufficient margin to hold their positions, especially in periods with high market risk. Because futures contracts are designed for institutional investors, the amounts associated with futures contracts are high. For example, if the index trades at 1300 and a futures contract on the index corresponds to 250 the value of the index, then each contract is the equivalent of a Rs.325,000 leveraged investment. Leaps Covered Calls Another option is to use a LEAPS call option as security for the covered call. A LEAPS option is an option with more than nine months to expiry. The LEAPS call is purchased on the underlying security, and short calls are sold every month and bought back immediately prior to expiry. At this point, the next monthly sale is initiated and the process repeats itself until the expiration of the LEAPS position. The cost of the LEAPS option is determined like any other option. Even though LEAPS call options can be expensive, due to their high time value, the cost is typically less than purchasing the underlying security on margin. Because the goal of the investor is to minimize time decay, the LEAPS call option is generally purchased deep in the money, and this requires some cash margin to be maintained in order to hold the position. For example if the index ETF is trading at Rs.1300, a two-year LEAPS call option with a strike price of Rs.1000 would be purchased and Rs.300 cash margin held, and then a onemonth call sold with a strike price of Rs.1300, i.e. at the money. By selling the LEAPS call option at expiry, the investor can expect to capture the appreciation of the underlying security during the holding period (two years, in the above example), less any interest expenses or hedging costs. Still, any investor holding a LEAPS option should be aware that its value could fluctuate significantly from this estimate due to changes in volatility. Also, if during the next month the index suddenly gains 150, the short call option will have to be bought back before expiry so that another can be written. In addition, the cash margin requirements will also increase by Rs.150. The unpredictable timing of cash flows can make implementing a covered call strategy with LEAPS complex, especially in volatile markets. Success is a lousy teacher. It seduces smart people into thinking they can't lose.Bill Gates
Zombies, also called living dead, are companies that continue to operate even though they are bankrupt.
To commemorate the
Centennial of Independence from Spanish rule in 1998, the government of the Philippines wanted to do something special. It issued the world's largest banknote, beating the previous record (Chinas Ming Dynasty 1 Kuan). The 100,000 Piso note measures 356mm x 216mm.
T h e
h i g h e s t denomination note issued for public circulation in the United States is $10,000. The highest denomination currently in circulation is $100.
Stock Ratnas Orchid Chemical and Pharmaceuticals BSE: 524372 SE: ORCHIDCHEM TARGET PRICE: Rs.176 CMP: Rs.113.15 Indraprastha Gas IGL TARGET PRICE: Rs.130 CMP: Rs.103.9 Welspun Gujarat Stahl Rohren
BSE: BSE: SE:
53214
532144
Rs.170.5
Nava Bharat Ventures BSE: 513023 NSE: NBVENTURES TARGET PRICE:Rs.247 CMP:Rs. 103.55
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PLACEMENT SPECIAL:
ASHISH AWASTHI
CHINTAN TONG
AJESH P. GEORGE
ANUJA MURARKA
FOUZIA TARRANUM
CROSSWORD ANSWERS
term Ponzi scheme is named for the pyramid investment scheme devised by Charles Ponzi in Boston in 1920. Ponzi promised 50% returns in six months but invesors ended up losing million of dollars. In reality he was merely paying older investors with the investments made by newer investors.
Quiz Answers
1.K B C A s s e t M a n a g e m e n t Company 2.ICICI bank 3.Samurai bond 4.Circuit breaker 5.Credit Bubble 6.Soft landing Midwest 7.F i r s t Financial, Inc. 8.UK
COMMENTS
Its colorful, its nice, its attractive, and information is up-to-date, relevant and useful for up-tostudents. Fr. Thomas T.V,Director, CUIM Format wise slight improvement required content wise could be more business oriented (current scenario), language used is ok. Prof. Doreswamy AG Chaanakya is timely and its precise, more contribution should be added by juniors by writing articles. Avijit Thakral,2nd Year MBA (Finance)