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Kumar Mangalam Birla's Smart Move

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  Recently Kumar Mangalam Birla the CEO of Aditya Birla Group has stepped down from the CEO position of the debt trapped company Vodafone-Idea (VI). He has also written a letter to the Government to offer his 27% stake in VI to any Public Sector Company run by the Government of India or any other private entity who are interested in handling the telecom giant company. He also wrote in his letter that he has tried his best to revive the company but wasn't able to do that due to immense competition faced by Jio and Airtel. After coming of Jio only three companies could have survived in the Indian market which were Vodafone, Idea and Airtel. But now it seems VI has also cleared the ground for Jio and Airtel. He told the Government in his letter that if they want a three company competition in the telecom market then specify it and take concerned steps for it. He also stressed on floor pricing of plans per subscriber so that they can survive in this fierce price war.  How Birla pl...

India's Investment fortune in Afghanistan

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  The withdrawal of The US troops from Afghanistan and The Taliban swiftly occupying the heart of Kabul till 15th of august 2021 has produced an alarming situation for all the other countries of the world and particularly leaving India in a disadvantageous situation. Afghanistan is included in the few countries in which India has invested a hefty amount of money and it is a land of strategic importance as far as India's situation is considered. The increasing influence of China in South Asia is a threat for India as China is using all India's neighbouring countries as a pawn by using its debt trap strategy to pressurize India from all the sides. So India is also increasing its influence in its neighbouring countries by making healthy trade agreements, investing in those countries and providing them monetary assistance and Afghanistan is one of the country which will help India counter China's ambitious One Belt and Road Initiative. India has invested a large amount of money...

The Great Indian Stock Market Circus!!

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  The coming of novice retail investors in the Indian Stock Market has just made upside down changes in the market. After outbreak of corona virus pandemic in 2020, there is a large increase in the number of retail investors and they have increased the liquidity in the market. Due to these novice investors penny stocks gave a yield of 1900% in past six months more than that of big blue chip companies like Adani Group which gave a return of 175% in last six months. The thing to watch out for in these penny stocks is that they have no strong income, inadequate employees and negative growth rate but still their prices hiked at an unprecedent rate. We can say that they have no fundamentals backing their rise in prices. This increase is due to large inflow of liquidity in these penny stocks by these investors as in penny stocks putting small amount of money can also yield high returns. There are chances of stock manipulation in these cases. We will talk about some of the cases that will...

The Great Sub Prime Crisis of 2008

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  The greatest recession of this century- The Lehman Brothers Crisis of 2008 or the Sub Prime Crisis of 2008 which led to a global recession and unemployed millions of people in the world was led by American Investment Banks majorly by Lehman Brothers. These banks provided sub-prime loans in the market. What is sub-prime loans? Generally, poor credit rating people are disqualified to apply for conventional mortgage applications. So banks in The US came out with a special type of loan which provided loan to those who doesn't qualify for regular home loans. These loans were provided on real estate collaterals. Objective of providing sub-prime loans: Expecting that the value of underlying property will go up in future and charging high interests helped banks to generate higher profits. If repayment is discontinued, banks could sell the property for a higher consideration due to appreciation in property pricers. Borrowers can rent out their houses with high value or can sell at higher ...

Cryptos making new lows!!

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  April 13 2021-  Bitcoin reached its zenith touching its lifetime high at $64,800... June 21 2021- Bitcoin hits its lower circuit of 2021 falling to about $31,608. A catastrophic rise in the prices of crypto currencies in 2020 made the world astonished. Its rise continuing till April 2021. But after a series of events it made its lowest of 2021 in just 2 months of time period. Not only bitcoin but also its biggest rival Ethereum also plunged and reached its all time lows of 2021. Dogecoin, Lash coin etc also gave big shocks to investors. What happened actually? Amid large selling pressure after reaching its zenith the cryptos started falling but it resisted its position after sometime not making major downfall but due to other series of events it plunged extensively. But China the biggest miner of cryptos in the world banned mining and trading of crypto currency alleging them as 'speculative' and 'a means of tax evading source of income'. The Chinese banking Assosciati...

Causes of Inflation

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  Inflation is a general rise in the prices of commodities and goods at a time. Inflation is not caused by any man-made or political cause (except in hyperinflation) but is caused due to series of events. Causes of Inflation: Demand-pull Inflation: It is due to aggregate demand growing faster than aggregate supply. It is caused when economy is at its full swing and there is high employment then the demand of goods in the market will be high as people will have more money in their hands and there will be more expenditure. So producers of goods in demand will think of increasing goods prices to make more profit as demand will be high and this will lead to increase in prices thereby increasing inflation rate. Cost Pull Inflation: It is caused due to increase in prices of raw materials. For eg: There will be increase in crop prices if there is drought or flood like situation in most parts of country ruining crop production. So there will be less supply of food items and more demand in ...

Investing at an early age

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  "Someone is sitting in the shade today because someone planted a tree a long time ago" -Warren Buffett If you want to make your 30s better and to love yourself at this age then start investing in your 20s. Regular investments made right from an early age can reap huge benefits at the time of retirement because of investments you can afford things that others' can't at that age. Early investments accompanies power of compounding that you can't imagine. It is the 'Magic of investment'. If a person invests just 5000 rupees a month at 10% interest then after 5 years only he will end up with 3.9 lakhs due to power of compounding. The early you start the more you get. Warren Buffett quoted, " I started investing at the age of 11 and regrets to start late." Benefits of early investing: Ability to take more risk: At an early age you can take more risk rather than an old age person who tries to secure his life by making save investments. More experience...