Weekly Round Up 28th June 2013

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29th June 2013

Weekly Round Up 28th June 2013   Hi Promofree Weekly Round Up gives you all the analysis and reports published by us during the week. Market Movement Analysis July 2013 July will be a Better Month for Markets The markets will put the June volatility behind and look to trend higher in July. June was rocked by the Fed presenting a road map for withdrawing its asset purchase program and by worries of shadow banking crisis in China. click here to read full analysis Friday Podcast 28th June 2013 Calm after the Storm The storm that hit markets in the last one month looks to be subsiding. On the global front, equity markets fell, bond yields rose and currencies turned volatile after the US Federal Reserve outlined plans to taper off bond purchases. click here to listen to the podcast Currency Articles General INR will touch Rs 70 to the USD if RBI Hikes Rates The Indian Rupee (INR) is trading at record lows of Rs 60.73 to the USD. Government bond yields rose to its highest levels in 45 days on the back of the weakening INR. Bond yields have risen by 50bps from lows seen over the last one month, tracking the INR that has depreciated by 10%. Bond markets are taking out rate cut expectations from yields as the RBI has indicated that INR volatility will be a strong factor in policy decisions. click here to read full analysis Equity Investment Tutorial 44 Indian Pharmaceutical Export Market Indian Pharmaceutical Industry is heavily dependent on exports. The percentage of exports to total industry sales is close to 50%. In fy13 the Indian pharma sector exports totalled USD 14.6 billion at a growth rate of 10%. click here to read full analysis Learn to be Your Own Fund Manager Series 27 The optimum number of stocks and weights for the stocks in your portfolio How many stocks should you own? What should be the weight of each stock in your portfolio? There is no right or wrong answer to this question. Professional fund managers can have concentrated portfolios consisting of very few stocks with large weights in each stock or can have diversified portfolios with large number of stocks with low weights in each stock. click here to read full analysis Currency Articles General Markets Shanghaied Financial markets are getting “Shanghaied” with the shadow banking crisis threatening the financial system stability of the second largest economy in the world. Emerging market currencies are facing the brunt of China’s headwinds with currencies of South East Asian countries such as Indonesia, Philippines and Thailand down  2.3%, 5.7% and 8% over the last two months respectively.  click here to read full analysis Weekly Fixed Income Market Analysis  Bond Market Is Taking Out July Rate Cut Bets The depreciation of the Indian Rupee (INR) to record lows against the US Dollar has resulted in reduced hopes of policy rate cuts by the RBI in its July policy review. The Central Bank has placed the INR as a key factor in its policy stance after it maintained policy rates status quo in the policy review on the 17th of June. click here to read full analysis Weekly Equity Market Analysis INR Weakness Is Rattling the Market Equity and bond markets are worried by the sharp depreciation of the INR against the USD leading to a fall of over 2% in the Sensex and Nifty and rise of 12bps on the ten year benchmark government bond yield week on week. The INR touched all time lows Rs 59.93 post the Fed statement of withdrawing its bond purchase program by mid 2014. click here to read full analysis Arjun Parthasarathy www.investorsareidiots.com arjun@investorsareidiots.com Information herein is believed to be reliable but the editor of Investors are Idiots.com Arjun Parthasarathy does not warrant its completeness or accuracy. Opinions and estimates are subject to change without notice. This information is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The financial markets are inherently risky and it is assumed that those who trade these markets are fully aware of the risk of real loss involved. Unauthorized copying, distribution or sale of this publication is strictly prohibited. The author of the articles may have investments in instruments that are the subject of the articles. © InvestorsAreIdiots.com. All rights reserved. Not interested in receiving emails from us? Click to unsubscribe.