The financial lens

G old prices have been soaring over the past few days, gold prices touched a six-year high of over Rs 40,000 per 10 gram of 24k gold and experts expect the price of the yellow metal to go up in future. What's driving sudden rise in gold prices? The uncertainty over US-China trade talks, developments in the global market and talks surrounding recession are some of the key reasons that have triggered a rise in prices of gold.The escalating trade tension between the two largest economies in the world is likely to push up gold prices further.The weak global economic outlook for the entire year is another reason why gold prices are surging. The yellow metal is considered as a financial instrument that does not erode in valuation during periods of economic disturbance. The trade war between the US and China, which is into its second year, has triggering fears of a global economic slowdown, roiling equity as well as currency markets. Apart from concerns about global slowdown a...

So the most talked about topic in the recent past and that is the US China Trade War. What is Exactly a  Trade War???. Trade war is nothing but two or more countries trying to stop the free movement of goods and services from one country to the other.  Over the past year, the world's two largest economies have imposed tariffs on billions of dollars worth of one another's goods.   US President Donald Trump has long accused China of unfair trading practices and intellectual property theft. In China, there is a perception that the US is trying to curb its rise.                                  Trump's tariffs policy aims to encourage consumers to buy American by making imported goods more expensive. So far, the US has imposed tariffs on some $250bn (£204.5bn) of Chinese goods, and China has retaliated with tariffs on $110bn of US products.     The point is to punish China...

It all started in 15th May 2017 when Enforcement Directorate had lodged an Enforcement case information report (ECIR) against Chidambaram Son Karti Chidambaram, INX Media and Its Directors (Peter and Indrani Mukerjee) along with couple of other under the provision of the prevention of Money Laundering Act (PMLA). INX Media had approached FIPB on March 13, 2007 for permission to issue 14.98 lakh equity shares and 31.22 lakh convertible non-cumulative redeemable preference shares of Rs 10 a piece to three non-resident investors under the FDI route. On May 30, 2007, FIPB cleared FDI of Rs 4.62 crore for INX Media. But it rejected the proposal of downstream investment of INX Media in INX News.   INX Media Refuse to obey the conditional approval of FIPB, and brought in over Rs 305 crore of FDI in the firm against the approved inflow of Rs 4.62 crore. As the directors realised that they wont be getting the funding they approached the then finance minister P. Chidambaram for the ...

During the AGM RIL chairman Mukesh Ambani announced that RIL will sell a 20 percent stake in its oil to chemical business to Saudi Arab Oil Company (Saudi Aramco). This is one the finest and the best announcements that Reliance has made after so many years of hard work in creating one of the best infrastructures for converting oil to chemical. Saudi Aramco will Acquire a 20 percent in oil business for an enterprise value of 75 Billion Dollars. This value addition will take reliance industries footprint global as far as the businesses are concerned and shareholders have a big win from the Aramco announcement as the share price on the very next day surges 10 percent. Brokerage houses have also revised price target due to the announcement made at the AGM mainly due to 2 factors,firstly the Aramco deal and Secondly that Chairman has made announcement that Reliance would turn into a debt free company by in  next 18 months and make it a de-risked company. As far as the EBITDA is con...

Mukesh Ambani led company Reliance industries limited announced today that it was selling a 20 percent stake in its oils and chemical business to Saudi Aramco the worlds most profitable company for an enterprise value of USD 75 billion.  Saudi Aramco is a natural gas and petroleum company based on Dhahran Saudi Arabia. It is one of the largest company in term of revenue and profits. Saudi Aramco is a state owned oil company of the kingdom of Saudi Arabia.Its the biggest oil company in the world,helping the country become the biggest exporter of crude oil. As Saudi Arabia government looks to take a part of the company public if that happens its set to be the largest IPO in the history of stock markets. with a net profit of about USD 47billion so far this year, Saudi Aramco has made more money than Apple and alphabet combined. Reliance in its AGM today said that it intends to become a debt free company by 2021. For Reliance, the cash from Aramco will help reduce debt that’s bee...

According to some market pandits Liquidity crunch post the NBFC crisis and IL&FS situation,uncertain regulatory framework,weak health of our economy,rural distress and poor consumption pattern are the major factors for declining auto sales. Since auto sectors employs significant number of contractual workers,Sustained low sales volume in adjusted lower production at automobile companies and auto-ancillaries are resulting in job cuts in this sector.As reported by FADA around two lakhs people have been laid off across automobiles dealers in last three months.Auto-ancillaries are witnessing a production cut of 20-25% that are seriously affecting there balance sheets and share prices. On 7th of august Representatives of automobile industries met FM and have sought a lower goods and services tax (GST) and a higher depreciation rate to tide over the crisis.According to Anand mahindra and other representatives GST rate of 28% plus cess in hurting sales and thus they have demanded a r...

Last month ie. July series was very Disappointing for the investors. Markets was behaving like there is no future,most of the stocks prices fell heavily with many of them losing around 25% in a month. With every fall Retails added more to their portfolio thinking it is good time to invest in such a time as stocks were cheaper,But share prices fell further thereby creating a self doubt in them as to why have they even purchase this shit.  This kind of fall does not happen so often,with negative news all around it has become a difficult situation for convincing Oneself for the Buy call. The situation is so poor that even when a company is showing profits as per market expectation the stock prices are falling by 2-3% and if it is not as per the expectation of market or a poor result is declared the stock prices fall by 20-25%. In either case trajectory is downwards. Warren Buffett once said be fearful when others are greedy and be greedy when others are fearful. There is so much ...