Chaanakya 4_14

8/8/2019 Chaanakya 4_14

1/21

VOLUME 4.14

ISSUE 76

October 16, 2010

Before you can really start setting nancial goals,you need to determine where you stand nancially.

-David Bach

8/8/2019 Chaanakya 4_14

2/21

8/8/2019 Chaanakya 4_14

3/21

By- Md. Zafer Iqbal I MBA - M

Repo

Reverse RepoCall rateIn ation (as on 14 Sept.)Forex Reserve(as on 8th Oct 2010)91 day T-BillIIP (for August)

6.90 GS 2019

6.00 %

5.00 %4.80-6.45 %8.50%$ 294.158 billion

6.5634%+5.60%

8.0907-8.0907%

Rates

students caRtoon

01

8/8/2019 Chaanakya 4_14

4/21

43

43.6

44.2

44.8

45.4

46

30-Sep 3-Oct 6-Oct 9-Oct 12-Oct

Rs/$

GRaPHs

02

17600

17800

18000

18200

18400


gold per 10 gm

20000000

22700000

25400000

28100000

30800000

5900

6000

6100

6200

6300


fu tu re rates o pen interest

5900

6000

6100

6200

6300

19900

20100

20300

20500

20700

30-Sep 05-Oct 08-Oct 13-Oct

sensex nifty

79

81

83

85

87


Oil(per bbl)

8/8/2019 Chaanakya 4_14

5/21

inteRnational news

The European Commission has slapped a ne of over 458 million euros on the worlds

largest steelmaker Arcelor Mittal and 16 others for operating a price- xing cartel for

nearly two decades.

General Electric Co. signed a deal to buy Dresser Inc. for about $3 billion, its latest

deal to expand its product offerings in gas and other energy markets.

The worlds wealthiest people have responded to economic worries by buying gold

by the bar - and sometimes by the tonne -- and by moving assets out of the nancial

system.

With countries like India and China investing heavily in their education systems andin infrastructure, US President Barack Obama has warned that America is losing its

competitive advantage and jobs to emerging nations.

Roaming rates may fall as DoT is considering to merge existing 22 circles to a singlelicense with pan-India coverage or to 4 regional zones.

Vedanta group has nally offered a price of` 355 for Cairn India. Cairn Energy pro-

poses to sell a maximum of 51 per cent stake in its Indian arm, Cairn India, to Ve-

danta in August.

The Government has xed the Coal India Ltd. Initial Public Offer (IPO) price between

` 225 and` 245 a share.The IPO will be the largest ever from an Indian rm till date,

surpassing that of Reliance Power that raised ` 11,500 crore in January 2008.

Higher trade de cit and lower net invisibles resulted in the widening of current ac-

count de cit for April-June 2010. According to RBI current account de cit widened to

$13.7 billion in the rst quarter of 2010-11, from $4.5 billion in the same period last

year.

Engineering and construction major Larsen & Tourbo has pared its stake in Mahin-

dra Satyam by of oading 2.84 lakh shares through open market transactions. L&Ts

stake in the company has now fallen to 2.16 per cent as against 4.58 per cent earlier.

national news

By- Vaibhav Nagar, I MBA L

03

8/8/2019 Chaanakya 4_14

6/21

04

India has shown a steady growth in terms of FII ows since liberalisation began whichshows the great importance attached to FIIs. If we observe, the share of FIIs in the

total Foreign Portfolio Investment (FPI) has seen a surge since its entrance in the equitymarket from 47% in 1992 to around 72% in 2003. They have emerged as the mostimportant players in the Indian equity market.

FIIs are Foreign Institutional Investors whose job is to poollarge amounts of money and invest that amount in differentareas like securities, real property and other investmentassets. FIIs are the ones which are highly correlated to theequity returns in India.

SEBI has recently stated that these institutional investorshave crossed the $20 billion mark in terms of investmentin the equity market. According to SEBI, the net FIIs were$20.5 billion. This gure states that it has reached all-time

high by crossing the previous gure of $17.5 billion which was achieved in 2007. Thissituation occurred just before the sub-prime crisis which hit the economies of the wholeworld. Even during the global nancial crisis in 2008, the FIIs pumped in a total of` .1,10,218 crores between April 2009 and March 2010 period that lead to an 80% surgein Sensex which was the highest ever annual FII in ow for a nancial year in the Indianequity market. In the past 2-months there was an in ow of around $10 billion which hasmade the Sensex touch a 30-month high by gaining more than 2500 points in the last twomonths. The index has been reaching closer to its previous record high of 21200. FIIsare pumping funds not only in the equity market but also in the debt market with the netinvestment crossing $10 billion.

Reasons:

The FIIs are pumping money in to market

because of Global economy is ush with liquidity

and part of this liquidity will nd way into the Indian equity market.

Indian growth story which signi esthat investing in Indian market willalways provide the required pro ts.

Diversi ed opportunity which tellsthat Indian market is much morediversi ed when compared to markets

By-Naveen Kumar Kulkarni, I MBA N

Fii Flow in equity maRket & imPacts

8/8/2019 Chaanakya 4_14

7/21

05

of other countries like Russia, Brazil etc.

The opportunity in Indian companies is more when compared to other companies inother different countries.

India being the largest democracy in the world de nitely inspires con dence in theIndian economy. This also reduces the risk premium of the country from the FIIsperspective.

Impact

There was major impact due to surge in the FIIs investments and that is theappreciation of rupee over the dollar in less than a month and that is there was a 5%

appreciation of rupee.

There is a large confusion between the high of cials whether to stop the pumping ofthe money or allow it.

The FIIs have become the only one who are driving the market ahead to newmilestones and make the market climb a big ladder.

ConclusionThe countries like India and China have provided growth impetus for the global economy.Therefore, I think FII in ows will be stable for longer period of time.

INTRODUCTIONA portfolio manager is a body corporate who, pursuant to a contract or arrangementwith a client, advises or directs or undertakes on behalf of the client (whether as adiscretionary portfolio manager or otherwise), the management or administration of aportfolio of securities or the funds of the client.

The relationship between the portfolio manager and client including their mutual rights,liabilities and obligations are speci ed in the agreement between the portfolio managerand the client. Recently SEBI had received complaints from clients relating to fees andcharges levied by portfolio managers and upon scrutiny SEBI noticed that the clausesrelating to fees and charges in the portfolio manager-client agreement do not alwaysclearly re ect the fees and charges payable by the client. Thus in order to bring about

greater uniformity, clarity and transparency with regard to fees and charges, SEBI hascome out with new norms.

seBis noRms on PoRtFolio manaGeRs Fees

By- Bhardwaj Varma I MBA M

8/8/2019 Chaanakya 4_14

8/215 CHAANAKYA VOL 4_13

SEBIs NEW GUIDELINES

1. Fees charged should be based on watermark principle

High water mark is the highest value that the portfolio account has reached. The portfoliomanager should charge performance based fee only on increase in portfolio value inexcess of the previously achieved high water mark. High water mark principle wouldbe applicable only for discretionary and non-discretionary services and not for advisoryservices. In case of interim contributions/ withdrawals by clients, performance fees wouldbe charged after appropriately adjusting the high water mark on proportionate basis.

For example, if a portfolio of` 20 lakh appreciates to ` 24 lakh in the rst year, aperformance fee or pro t sharing will be payable on 4 lakh. In the next year if theportfolio value falls to 22 lakh, no performance fee will accrue.If the portfolio value goesup to ` 25 lakh in the third year, the fee can be charged only on` 1 lakh (` 25 lakh- 24lakh). For the fourth year, the high water-mark will become` 25 lakh.

2. Investors liability should not be greater than his investmentIn order to discourage portfolio managers fromconstructing highly leveraged portfolio structures, SEBIhas put in a condition that in case of a discretionaryportfolio manager, a clients liability should not exceedhis investment with the portfolio manager.

3. AnnexureAgreement with the client to contain an annexurecontaining all fees and charges payable to the portfoliomanager: This annexure should contain details oflevy of all applicable charges on a sample portfolioof ` .10 lacs over a period of one year. The fees andcharges shall be shown for 3 scenarios viz. when theportfolio value increases by 20%, decreases by 20%or remains unchanged.

4. Disputes between the portfolio manager and the client in relation to the fees andcharges to be settled through arbitration under the Arbitration and Conciliation Act, 1996.The new norms for portfolio managers will apply from November 1. As regards theexisting customers, the portfolio managers will be required to implement the norms fromJanuary 1, 2011.

CONCLUSIONSEBIs move is to bring in standardisation in the industry is in the interest of investorsand a nightmare to few of the portfolio managers.

06

8/8/2019 Chaanakya 4_14

9/217 CHAANAKYA VOL 4_13 07

FReeinG savinGs inteRest RatesBy- Kumar Gaurav I MBA M

If RBI approves what it reviewed at a pre monetary policy review meeting, guaranteedreturn on savings bank account may soon be a thing of past. This means that savingaccount interest rate will be deregulated. Deregulation means every bank will have thefreedom to set the interest rate depending on their needs of fund as this is the primarysource of low cost funds to banks. At present, the rate is 3.5% as mandated by RBI.

This step will de nitely take care of the interest of small depositors as they are theworst hit because of increasing Consumer Price Index and Wholesale Price index yearby year. The current rate of saving bank re ects a negative return as it is not on parwith increasing above mentioned rates. This is high time RBI looks into it. And the rststep towards the freedom was taken when decision to calculate interest on saving bankaccount on daily basis was taken.

Most of the Public sector banks are opposing this move as they say that this will de nitelyerode their pro ts which are anyways not impressive. But I feel this will not impactbanks much as customers are not going to migrate to other banks just because of somedifference in interest rate. I feel it is not fair to offer such low rates to customer, justbecause banks, mostly public are not able to cut down their cost which primarily involvesdownsizing of staff. Most studies shows that by employing less staff at least new privatebanks are ef cient if not making great pro ts. Of course there are other factors too ifpublic banks want to counterpart with private banks or foreign banks. Savings bank ratemay go low, if banks cut cost, go for low cost fund which increases liquidity.

This move will de nitely help to break the monopoly of bank leading to lowering of ratesin some areas and increasing in other areas. But there are other issues to be taken careof. Most importantly is transparency. There should not be any biasing or discriminationon the interest rate on the basis of location of the bank or the type of customer. All suchissues should be dealt properly.

By- Hiran II MBA K

8/8/2019 Chaanakya 4_14

10/21

08

investoRs Focus

HCL Infosystems Ltd.

I ndian Markets had a mag-nificent run in the past onemonth. The benchmark indi-ces gained over 15% in last45 days. The valuations havegone somewhat high and it isa period of uncertainty whenit comes to entering into

fresh positions . However wewould rely on technicalcharts to pick new stockskeeping a tight stop-loss foreach pick.

HCL Infosystems Ltd. isIndias premier hardware,services and ICT systemsintegration company offer-ing a wide spectrum of ICT products that includes Com-

puting, Storage, Networking,Security, Telecom, Imagingand Retail.

Fundamentally SpeakingThe company is growingleaps and bounds. The man-agement is aggressive andcompany has bagged bigdeals in recent past whichwill drive the sales for thecompany. They recentlypicked up a majority stakein Dubai based NTS sys-tems. They also baggedoffers from Census of In-dia ( ` 40 crores), DelhiInternational Airport Lim-ited, Government of Madh-

ya Pradesh & Himachal Pra-desh electricity board,which has driven the orderbook higher. HCL Infosys-tems announced its entryinto business with thelaunch of HCL Ozone ser-vice which will offer busi-ness applications, produc-tivity applications and IT

service solutions to the us-ers.

The Q1FY11 PAT was up 5%from the previous quarter at` 71.64 crore. The companyhas risen in both topline &bottomline over past fewquarters and has already

given 375% dividend in pastone year. It is expected tooutperform this quarteragain. The Company is alsomulling merger with parentcompany HCL technologieswhich may result in shortterm buying interest amongtraders and investors. Cur-rent P/E11.7

Price crosses 50 day moving aver-age and bullish engulfing candle-stick pa ttern i s formed. We mayenjoy a short upmove forming dou-ble bottom pattern.

Momentum rises sharply ove r 5%

Stochastic si gnal aligns wi th apossible formation of doublebottom pa ttern, indicatingreversal of prior trend.

CCI and R% chart indicates thescrip has reached oversold re-gion and is now making a rever-sal.

Special points ofinterest:

Since we are lookingat a trading horizon

of 15- 30 days, weshall give moreweightage to technicalanalysis and pricetrend of the stock.

We shall also studythe fundamental as-pects of a company toavoid getting into lossmaking trade positionsin case of movementof market in directionopposite to that of myprediction.

Technically Speaking

Recommendation : BUY

CMP : ` 120.20

Target Price : ` 133-135Stop loss : ` 114.40

BUY :Binani Indus-triesCMP 216.10Target ` 250Stop Loss 205

Agro Dutch Ind.CMP 30.75Target ` 34.50Stop Loss ` 29.50

Sell :Punj LloydCMP 137.50

Target ` 122.50

Stop Loss 144

Other Picks

By- Madhukar Das I MBA G

8/8/2019 Chaanakya 4_14

11/2110

HistoRy oF HedGe FundsBy- Amar G.M.- V MBA K

Hedging risk has been an integral part of the nancial markets for many years. In the1800s, commodity producers and merchants beganusing forward contracts for protection against unfa-

vorable price changes. This system is still very activetoday. The term hedge fund dates back just to 1949.In 1949, almost all investment strategies took only longpositions. A reporter for Fortune magazine, namedAlfred Winslow Jones, published an article pointing outthat investors could achieve higher returns if hedgingwere implemented into an investment strategy. Thiswas the beginning of the Jones model of investing.

To prove his hypothesis, Jones launched an invest-ment partnership incorporating two investment toolsinto his strategy: short selling and leverage. The pur-pose of these two strategies was to limit risk and en-hance returns simultaneously. In addition, Jones established two important charac-teristics that are still part of the industry today. He used an incentive fee of 20% of pro tsand he kept most of his own personal money in the fund. This ensured that his personalgoals and the goals of his investors were in alignment.

Exceptional results were obtained through this hedged approach. During the period from

1962 to 1966, Jones outperformed the top mutual fund by more than 85%, net of fees.The success of Jones stimulated the interest of high net worth individuals in hedgefunds. Not only did Jones attract the interest of high net worth individuals to hedge funds,but also many top money managers were drawn to hedge fund because of the unique

fee structure. A 20% incentive fee made it possible formanagers to earn 10 to 20 times as much in compen-sation when compared to long-only money managementservices.

Between 1966 and 1968, nearly 140 new hedge fundswere launched as a consequence of the new dynamicsof investing and managing money. Many of these funds,however, did not follow the Jones model of hedging risk.Instead of hedging, only leverage was used to enhancereturns, ignoring the short-selling aspect that Jones em-ployed. Using a leveraged, long-only strategy made thesefunds highly susceptible to the market downturn that be-gan in late 1968. Some hedge funds dropped in value bymore than 70% within two years.

Large hedge fund losses due to the 1973-1974 bearmarket caused many investors to turn away from hedgefunds. For the next ten years, few managers could attract

8/8/2019 Chaanakya 4_14

12/21

the necessary capital to launch new partnerships. By 1984, there were only 68 funds inexistence. In the late 1980s, a small group of extremely talented hedge fund managers,including George Soros, Michael Steinhart, and Julian Robertson, gave hedge funds arestored credibility. Despite dif cult market conditions, these managers produced annualreturns of greater than 50%.

Many of the worlds best money managers left the traditional institutional and retail in-vestment rms because of potentially higher fees and great exibility with managinghedge fund products. By 1990, there were over 500 hedge funds worldwide with assetsof about $38 billion. Hedge funds now represent one of the largest segments of theinvestment management industry. Currently, it is estimated that there are over 6,000hedge funds in existence with total money under management in excess of $1 trillion.

Hedge Fund in India:

Hedge funds were demysti ed in the Indian markets only recently when the marketopened up to newer investment opportunities. The hedge funds database is managedregularly to keep track of the investment patterns of the market.

Hedge funds explained the growth of short positions in the markets. The market fail-ures do not affect hedge fund investors and hedge fund managers due to the liquidityleverage they bring. The hedge fund manager or administrator acts as an analyst keep-ing track of the hedge funds news, bonus returns, quotes, valuations and returns. Thehedge fund statistics include a careful research on all these factors to avoid any kind offraud in the valuations. Thats all about the Hedge funds.

11

cuRRency aPPReciation By- Rohit Dhannawat I MBA-L

IntroductionThe Indian currency was the Asias best performing currency is the past month. The In-dian currency touched ` 44.11 on October 7, 2010 strongest since September 2008. It islikely to continue for the coming days. Although the forex reserves increased by over $2.5billion, the total reserves has reduced by over 16000 cr. in the last week.

ContentIndian economy is among the fastest growing economies of the world. The appreciationof the rupees against the dollar is another giant sign towards economic prosperity. In re-cent times, India has attracted huge capital in terms of Foreign Direct Investment (FDI),and Foreign Institutional Investment (FII), External Commercial Borrowings (ECB) andNon-Resident Indian (NRI) deposits and remittances also contributed to the dollar in ow.The FIIs have invested around ` 998.7 cr. in the past few months. The stock market has

seen FIIs as net buyers consecutively for last 29 days.

Although India had been witnessing strong dollar in ows for some time, the rupee has

8/8/2019 Chaanakya 4_14

13/21

not appreciated as steeply as it did between Sept.06 and July 07. Earlier when strong dollar in ow wasseen into India the Reserve Bank of India (RBI) usedto intervene in the foreign exchange market and pur-chase excess dollars so as to minimize volatility inthe value of the rupee. But during 2006-07 RBI hadchosen not to intervene in order to control the domes-tic in ation. While RBI was able to tame the in ationrate, the rupees appreciation had affected Indian ex-porters as Indian goods became more expensive forforeign buyers. Information technology (IT) and tex-tiles industries were particularly hard-hit, as they weremost dependent on the US. The IT rm Wipro hadreported 2.4% less pro t only because of currency

appreciation of rupee over dollar.Any appreciation in the rupee results in an erosionin the value of the RBIs foreign exchange reserves.The RBI had been buying the US dollars when it wasvalued around ` 48 49 till the present valuation of` 44 45. Thus, it has already lostaround 12-15 percent on the dollar value. The present forex reserves of the country arearound $ 294.158 billion.

The in ation in India has been high for a very long time because of which RBI has itshands tied up in curtailing appreciating rupee. In normal circumstances, RBI buys USDfrom the market releasing more rupee. But with in ation affecting the Indian economymore rupee in the market will be like oil in re on in ation. Hence we cannot expect RBIand group of Indian nationalized banks to buy USD.

RBI has been increasing interest rate for last one year just in order to curb in ation andreduce ow of money in the market. RBI has also increased CRR so that money availablewith bank for lending is lesser which has taken its toll on growth rate in industrial sectoras loans have become expensive and many businesses have postponed their expansion

plans. Rising interest rate has also led to appreciation of rupee as foreign investors havefound parking money in India as a lucrative option fetching them high interest income,which has hurt our export industry. RBI might allow some appreciation in the rupee andstart worrying about currency appreciation only after in ation has reduced further.

The currency appreciation has bene ted the economy by making imports cheaper. Thebiggest gainers are in automobile industry such as Hero Honda. On the other hand IT,textile, leather industry and other export industries are losing a large part of pro t as theyare unable to raise the rates for the consumers. Although exports account for a relativelysmall share of the economy, it cannot be ignored as it has been an important catalyst ofeconomic growth.

Conclusion:The appreciation of the rupees will help the economy in many ways. There will be positive

12

8/8/2019 Chaanakya 4_14

14/21

impact on importers and negative impact on the exporters. It will help in easing the pres-sure related to foreign debt on India and Indian companies. Considering that the govt isin disinvestment mood in major public sector units, and a substantial chunk of this beingsubscribed by FIIs, the latter will have to invest more dollars to pick up stake in the com-pany being disinvested, thus aiding the Government build up reserves.

Export industry such as IT will lose out to other competitors as the pro t margin will beaffected to a large extent. For other export companies a lot will depend if they can getexemptions in the duty charges in order to reduce the overall price and increase the pro tmargin.

13

Fundamental analysis oF commoditiesBy - Mookambigai.G II MBA M

Fundamental analysis is a means of analyzing commodities and trying to predict wherethe prices of commodities should be trading and what they will do in the future. The mainbasis for fundamental analysis is supply and demand.

Supply and demand is a very simple equation, but it gets more complicated when we tryto forecast prices in the future. Commodities trade in cycles. Some times supplies willbe tight and prices will be high. Other times, we just have too much of a commodity andprices fall accordingly. Lets look at the commodities that are trading at multi-year highs orlows. Eventually, the picture will change and that will lead to a good trading opportunity.

Price movements in commodities using fundamental analysiscan be broken down into these simple formulas:

Demand > Supply = Higher Prices Supply > Demand = Lower Prices

Supply of Commodities:The supply of a commodity is the amount that is carried overfrom previous year(s) of production and the amount that is being

produced during the current year. For example, the current sup-ply of soyabeans would include the amount of crops in the ground and the amount that isleft over from the previous season. Typically, the more that is carried over from the previ-ous season, the lower the prices will fall.

There are many factors that can impact the supply of commodities like weather, amountof acres planted, production strikes, crop diseases and technology. The main thing toremember when using fundamental analysis is that high prices for commodities will leadto an increase in production, as it is more pro table to produce commodities when pricesare higher. As we might expect, demand will typically drop as prices move higher.

Demand for Commodities:Demand for commodities is the amount that is consumed at a given price level. The ruleof thumb is that demand will increase when the price of a commodity moves lower. Oppo-

8/8/2019 Chaanakya 4_14

15/21

14

sitely, demand will decrease as the price of a commodity increases. There is an old say-ing among commodity traders that low prices cure low prices. This means that more ofa commodity will be consumed at lower prices, which lowers the supply and thus priceswill eventually increase.

Just think about how we would use more gasoline at $1.50 per gallon than you would at$3 per gallon. Fundamental analysis of commodities is simple economics. Consumptionpatterns change as the prices of commodities move higher and lower.Using Fundamental Analysis to Predict Future Prices of Commodities

Prices will uctuate in the short term, so it is not easy to make fundamental forecasts ofcommodities prices and make short-term trades. It is even more dif cult for new com-modity traders to do this. So new traders, and even experienced traders, must use along-term strategy when using fundamental analysis to forecast commodity prices. Weshould look for trends that are developing that will cause a shift supply and demand fac-tors.

To begin our fundamental research of commodities, there are numerous reports that arecompiled by government sources USDA, Department of Energy and the Futures Ex-changes. Many of the larger commodity brokers will also publish fundamental researchfor their clients.

It may seem like a daunting task to nd all the current data and compare it to previous

years and see how prices reacted under those conditions. Worse yet, we have to fore-cast in the future as to what the supply and demand scenario will be. It is almost impos-sible to do this, especially since we will be competing against experts who have a lotmore information and experience than us.

We must look for trends in production and consumption and trade with that bias. For ex-ample, if the supplies of corn are at a ve-year high and we just planted a record amountof acres of corn for this season, it is likely that corn futures will trade with a downwardbias. We would be likely want to trade from the short side.

Now, at some point, the price of corn will get too low and demand will increase. Or, theremight be weather problems during the growing season that will lower the production ofcorn. In these cases we have to be exible and realize that prices wont go down forever.

The longer-term trends in commodities are easier to spot with fundamental analysis,but we must use technical analysis to capture shorter-term movements in commoditiesprices. Most professional commodity traders like to know what the big picture is withcommodities using fundamental analysis and then they use technical analysis to timetheir entries and exits.

8/8/2019 Chaanakya 4_14

16/2114 CHAANAKYA VOL4_13 1515

LockdownA speci ed period when an employee of a public company is barred from selling - andoccasionally buying - his or her companys stock.

Legislative OverkillA law enacted to stop or prevent the abuse of a loophole, but ends up imposing morerestrictions than are necessary for reasonable prevention.

Lame DuckA person who has defaulted on his or her debts or has gone bankrupted due to the stockmarket. The nancial use of the term is most commonly used in Europe.

Leakage

A release of information to certain people before the of cial public announcement.

Lobster TrapA strategy used by a target rm to prevent a hostile takeover. In a lobster trap, the com-pany passes a provision preventing anyone with more than 10% ownership from con-verting convertible securities into voting stock.

Sleeping BeautyA company that is prime for takeover but has not been approached by an acquiringcompany.

SandbagA stalling tactic used by management to deter a company that is showing interest in tak-ing them over.

Blue OceanA slang term for the uncontested market space for an unknown industry or innovation.

Bracket Creep

A situation where in ation pushes income into higher tax brackets. The result is an in-crease in income taxes but no increase in real purchasing power.

BuZZ woRds

Bankruptcy stared me in the face, but one thought keptme calm; soon Id be too poor to need an anti-theft alarm.

~Gina Rothfels

8/8/2019 Chaanakya 4_14

17/21

In this edition we have with us, Mrs. Preethi Rammohan

Name: Mrs.Preethi RammohanOrganization: Amba Research

Designation: AnalystBatch: 2008

Areas of Interest: Field of Research and AnalysisEmail-Id: [email protected]

Contact number: +91 9972319188

Chaanakya:What is expected of an analyst at Amba Research?

Mrs. Preeth i: An analyst at Amba Research is involved in Investment Research. Thework involves nancial modelling, report writing, forecasting and analysis of companyand industry performances along with huge amounts of data collection and presentation.

Chaanakya : What does it take to write down company reports and analyze its health?Mrs. Preeth i: Most importantly you need to have an interest in this kind of work andsharp analytical skills. In depth industry knowledge makes analysis easier and quicker.

Chaanakya: With all the big scams around, do you think reports rendered by companies

are trusted and comprehended by the common man?Mrs. Preethi : Reports published by companies are our only source of information. Its upto the common man to interpret them. I think the common man is wise enough to makeinterpretations of his own as an investor; our job is to just provide the accurate informa-tion. Hence, we have no other choice.

Chaanakya : IPOs back in the market, led by COAL INDIA LTD., in your opinion howfar should the governments disinvestment policy go?Mrs. Preethi : Its important for the government to carry out the divestment in a structuredand steady manner.

Chaanakya: How do you relate experience versus added quali cations in terms of jobprospects in the corporate environment today?Mrs. Preethi: Added quali cation is only a gate pass to the corporate world. What ismore important is the way you market your added quali cation or your experience. I thinkwhat matters most is ones ability and skills, added quali cations just polish up the nalproduct (the candidate in this case). Experience, on the other hand shows how well onecan handle real life situations. So, though experience and added quali cations certainlycome in handy, but more importantly its the candidates ability that matters the most.

Chaanakya: How important is it to have an MBA if youre contemplating a career as anancial advisor or nancial analyst? Many people get jobs in these elds with only a

bachelors degree and virtually no work experience and seem to do quite well?

alumni sPeak By- CLIFFORD CARDOZA

MOHIL KAPOOR SMITHA JOSEPH

16

8/8/2019 Chaanakya 4_14

18/21

Mrs. Preethi: MBA as a degree, as I already mentioned is only a gate pass. Companieslook for talent and skills more, than just a degree in a candidate. Its true that recentlypeople with just a bachelors degree seem to do quite well in some organizations, but Istill believe MBA graduates bring more to an organization than people with just a bach-

elors degree.

Chaanakya: Message for Students.Mrs. Preethi: Dont study, just learn!

Thank You!!!

17

quiZ

1. What is the combined networth of Indias 100 richest people as per the latestForbes research study?a. $ 276 bnb. $ 300 bnc. $ 400 bn

d. $ 250 bn

2. Who is the CEO of King sher Airlines?a. Vijay Mallyab. Sanjay Aggarwalc. SR Guptad. Siddharth Mallya

3. Consumer goods major UNILEVER will acquire the US based Alberto CulverCompany for the cash deal of :a. $ 4.5 bnb. $ 3 bnc. $ 4 bnd. $ 3.7 bn

4. Wal - Mart Stores Inc, the worlds largest retailer, is planning to buy MassmartHoldings Ltd. In a transaction worth about $ 4.6 bn, for entering into which place?a. Brazilb. India

c. Africad. China

By- Abhijeet Sekhawat I MBA G

8/8/2019 Chaanakya 4_14

19/2116 CHAANAKYA VOL4_13 18

cRosswoRd

Across

1. The term Silver Thursday is associated with?4. These exchange-traded funds are not present in the world.5. World Bank president

Down

2. Asia-focused bank which launched a $5.3 billion rights to bolster its nances fornew capital rules and for growth opportunities.3. Recently oated the worlds largest IPO

Answers for quiz:1. B

2. B3. D4. C

8/8/2019 Chaanakya 4_14

20/21

8/8/2019 Chaanakya 4_14

21/21

Institute of ManagementHosur Road, Bangalore - 5600029, Karnataka, India

Tel: +91-80-4012 9350/9351/9355Fax: +91-80-4012 9000

Documents

Chaanakya 4_14