Archive for the ‘Finance’ Category

Pakistan grants MFN Status to India, does it have a choice?

Friday, November 4th, 2011

Pakistan has announced that it is granting the Most Favoured Nation (MFN) status to India.

There have been a lot of cry from within Pakistan not to do so, based on India’s stand on Kashmir.  The Information Minister of Pakistan has said it will be beneficial for both sides to do so. Historically, at different points of time India has also granted the MFN status to Pakistan.

Indian Rupee (INR) vs Pakistan Rupee (PKR)

As soon as I read this news, I tried to do a comparison of the currency values of India (INR) and Pakistan (PKR). I was surprised to realize that in the past ten years the value of Pakistan Rupee (PKR) has gone down considerably against the Indian Rupee (INR). The chart below shows how for each PKR we used to get .80 INR and now it we get only .50INR.

Overall, it appears to be a very logical move by the Pakistan Government to take advantage of India’s position right now. From a sentimental standpoint, it will take a very long time (a few decades more) for the people of the two countries to really start accepting each other, but for now, I guess MFN is a better deal than nothing from Pakistani side.

Is Nita Ambani getting ready for Corporate World?

Wednesday, November 2nd, 2011

Nita Ambani is the wife of the famous Mukesh Ambani, who is one of the top 10 richest people in the world. Nita Ambani has always claimed that she is happy being Mukesh’s wife but the recent events in the past two years show a trend.

Nita Ambani is quite active in social work for a very long time and is involved with various activities such as providing education for the under privileged, providing eyesight to under privileged people, fighting the HIV epidemic, etc.  Nita Ambani is also managing the Dhirubhai Ambani International School in the role of a chairperson. This school serves as the school to go to for all the rich and the famous in Mumbai.

Once the Indian Premier League (IPL) cricket tournaments were started, Nita Ambani became the co-owner of Mumbai Indians team and has been quite active in the Mumbai Indians management. This year Mumbai Indians won the Champions League for the first time and many have attributed their success to the motivational skills of Nita Ambani.

After Mukesh Ambani acquired 15% stake in some of the hot properties of Oberoi group after paying an amount of 242 million USD recently, it has been announced yesterday that Nita Ambani will now be a non-executive director in the board of East India Hotels, the parent group for Oberoi hotels. This recent news came on her birth day 1st November. Sweet birthday gift 🙂

I was guessing Mukesh Ambani would groom Akash Ambani (after seeing Akash at the IPL4 auctions in Bangalore) to be the one to take care of Reliance Industries in the future, but with the recent trends mentioned above, it makes me think Nita Ambani might well start taking care of some of the businesses in the giant’s large corporate world in the near future.

 

Will Silver overtake Gold?

Monday, October 24th, 2011

Gold has been a safe haven for investors in the last ten years and it has resulted in its dream run. In fact, I had it in my top three investment opportunities in the past ten years.

If the information about Silver is to be taken at face value, the rate of growth of silver is far more higher than that of gold in the past two years.

There are many reasons for silver to go up at this pace:

1. All reasons mentioned about why gold prices have gone up, apply to silver too. (Eg. unstable global economy, safe havens, etc)

2. In addition, the quantity of silver left in this world is far less (less than 3%) than the quantity of gold left to be excavated from the mines. In other words, silver will be come a rare metal and will not be available in the market for regular consumption.

Given this situation, Silver might be a good investment opportunity to consider for me and hence I am planning to look into this in detail with more interest.

Note: As always, take your investment decisions on your own and never blame someone else (a.k.a. me) when you lose money on your investments. All comments given above are what I do and I intend to do.

Globalisation – Cannot live with it – Cannot live without it

Wednesday, November 17th, 2010

Recently, I was given a video link of the speech of one Mr.M.R.Venkatesh who is a renowned economist in India. When the video started, I was surprised by the fact that he said ‘I will be happy to tell the US how to save themselves from this crisis’ 🙂 As a continued watching the video, I realized the core message of what he was trying to say.

As M.R.Venkatesh explains the disadvantages of globalisation and the dependency on a single currency (ie. the US Dollar), he goes on to say how the US Dollar cannot be let to fail, as it will take back all the growing countries by 50 years or so. The thought was quite scary. Some of the examples he provided to help the audience realize this in a very simple way was excellent.

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Top Three Investment Opportunities

Thursday, October 14th, 2010

Having spent the last ten years managing money, I have noticed three significant investments, which have been a runaway success. Some of you might have had other investment options which were quite successful in the past, but the ones listed below are the ones where I have personally seen good returns.  Based on that experience, I am providing the details as much as possible on each one of them:

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Main Street USA ideas for PURA in India

Sunday, October 3rd, 2010

I have always been a fan of the concept of ‘Main Street’ that have been in existence in the US for over 100 years now. I have also been a big fan of the PURA (Providing Urban amenities in Rural Areas) concept that is envisioned as a part of India 2020 programme – helping India achieve the status of a developed nation by the year 2020. Only this year, I was able to compare the similarities between the two concepts as until then it never struck me that they are two ways of achieving the same result.

This blog (though it appears to have taken the form of a whitepaper 🙂 is an attempt to see if my view of Main Street USA will help us take some ideas from this and implement it to improve rural India using the PURA concept.

Before I confuse you more, let me explain my understanding of each concept separately and also the thought process behind the similarities in the goal behind both these concepts.

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AOL buys Tech Crunch

Saturday, October 2nd, 2010

Tech Crunch is a popular technology related website, which tries to give the latest news about venture capital fundings, trends, mergers and acquisitions, etc in technology. Mike Arrington is the founder of Tech Crunch who build it from ground up to a very good scale.

AOL has been in business in the US for over 10 years – they became very popular with their AOL mail and then their chat application, portals, etc. In the past few years AOL has been considered to have lost a huge market share, both on the email space as well as the other web properties space, to giants such as Google, Apple, Microsoft, Yahoo, Facebook, Twitter, etc.

During the Tech Crunch Disrupt event, an event that Tech Crunch hosts to discuss latest trends in technology, Mike Arrington announced that AOL has bought Tech Crunch – though the value is unknown it is rumoured at around 40 million US Dollars.

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Kalanidhi Maran – 17th richest man in India

Friday, October 1st, 2010

A few days I had written about why I felt Kalanidhi Maran will soon become the richest man in the world. I could not help smiling when Forbes magazine announced their 2010 top 50 Indians based on their net worth. Kalanidhi Maran has jumped up to 17th position with a net worth of 4 billion dollars.

Kalanidhi Maran shot to limelight outside the realms of South India, with his acquisition of Spice Jet Airlines earlier this year.

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