Suhail Rizvi, an enigmatic India- born investor, has emerged as one of the biggest gainers from Twitter's high-profile public debut with his 15.6 percent stake in the micro-blogging site worth a whopping USD 3.8 billion.
The 47-year-old has remained a mystery in the Silicon Valley despite his significant tech investments in recent years.
So, here are some lesser known facts about the mystery man.
Also read: Current situation worse than that in 2008: Marc Faber
Below is the edited transcript of his interview to CNBC-TV18.
Q: This week was a bit of a tough week. We had a couple of choppy days and the markets closed at the lowest point everyday. How would you approach the next week? Do you think this choppiness or volatility could continue?
Kedia: I am not looking merely at choppiness. There is a firm sign of a clear top coming in. I have been talking toppish for almost 5-6 weeks the day the new RBI governor made his maiden speech market had made a high of 6174 since then we dropped out 400 points. We then rose 600 points from those lows and we have come back to close roughly where the first speech from the RBI governor came.
In about 6-7 weeks, net-net Nifty has really not moved in that net change sense but a lot of things on the internals have changed.
A major risk off season is going to return upon us; the winter of risk off. I have been a little early in calling the markets top; it may have topped right now.
Q: You have been calling for a steep correction in US markets. When do you see that playing out? What kind of correlation will other asset classes like the dollar and in turn Indian equity markets have if that steep correction plays out?
Kedia: The call for a correction has been getting constantly signalled from the charts when you are anticipating. You are calling for a trend reversal which is not yet in place, the risk of getting whipsawed a few times, the risk of having to hit stops will be in place, but from the several US indices the one that has clearly made a reversal is the Nasdaq 100.
Nasdaq 100 given its nature is high-beta, there are a couple of interesting insights. While the ratio chart of Nasdaq 100 to S&P 500 has constantly been rising since the lows of 2001 when Nasdaq 100 collapsed, this 12-year outperformance of Nasdaq 100 is almost about getting over.
It is not just that index is stopped out, its outperformance too is. When I also ran a ratio chart between Nasdaq 100 and the CNX-IT, the kind of 10 percent additional upmove the CNX-IT made since I stuck my neck out that this index is topping out; even though it happened in fairly volatile fashion.
Not just trying to hang onto a view that has so far been a loser in last one month, but the CNX-IT has had underperformed the Nasdaq 100.
Going forward, if my thesis comes right on a winter of risk-off and pretty much everything in the world will go down except for the US dollar, then who knows aversion to investment in IT stocks may combine that with equity beta. The CNX-IT has a far strong beta with the Nifty index than with the INR-USD. That was one way to correlate the US market.
Another way is the US equity markets are the last ones to move in short-term trading cycles. Korea has made a clear-cut top out. Last three weeks, basic technical analysts will tell you that market is no longer bullish; it has definitely reversed. China was not bullish.
You do not count Japan really in Asia, but Japan is inside a fulcrum. It is going to breakout either ways. I am tipping my head. It is not going to breakout upwards. So while the US markets kept on alluding a sense of strength there has been a distribution going on elsewhere.
It looks like once these markets top out, the complacency that is going up will be abandoned very rapidly.
Disclaimer: The above views are the personal analysis of Sushil Kedia, President ATMA and do not reflect any opinion of ATMA
To know more about ATMA, please visit http://www.atma-india.net/
Nov 09, 2013, 06.12 PM IST
Shriram City Union Finance a Shriram group company has filed the Draft Prospectus for a public issue of NCDs aggregating upto Rs 10,000 lakhs with an option to retain over-subscription upto Rs 10,000 lakhs for issuance of additional NCDs, aggregating to a total of upto Rs 20,000 lakhs.
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Shriram City files draft prospectus for NCD issue
Shriram City Union Finance a Shriram group company has filed the Draft Prospectus for a public issue of NCDs aggregating upto Rs 10,000 lakhs with an option to retain over-subscription upto Rs 10,000 lakhs for issuance of additional NCDs, aggregating to a total of upto Rs 20,000 lakhs.
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Shriram City files draft prospectus for NCD issue
Shriram City Union Finance a Shriram group company has filed the Draft Prospectus for a public issue of NCDs aggregating upto Rs 10,000 lakhs with an option to retain over-subscription upto Rs 10,000 lakhs for issuance of additional NCDs, aggregating to a total of upto Rs 20,000 lakhs.
The NCDs offered through this Draft Prospectus are proposed to be listed on the BSE and the National Stock Exchange of India (NSE). The face value of Secured Redeemable NCDs and Unsecured Redeemable NCDs has fixed at Rs 1000 / NCD.
Shriram City Union Finance is a deposit-taking NBFC with multiple product lines, including loans to the small enterprise finance segment; loans against gold; financing for two wheelers, appliances and other commercial goods.
Also Read: Muthoot Finance files draft prospectus for NCD issue
The NCDs proposed to be issued under the Issue have been rated 'CARE AA' by CARE for an amount of upto Rs 20, 000 lakhs.
ICICI Securities Limited as a lead manager, Shriram Insight Share Brokers Limited as a registrar and GDA Trusteeship Limited has appointed as
Debenture Trustee to the issue.
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The Sensex is at a three-year high on the back of FII buying. Is this a sustainable trend, especially when IIP numbers are not encouraging? Forbes India asks the experts.
This is sustainable. FII buying surged due to the US Fed not tapering its QE and the US government shutdown. FIIs will not hesitate to invest in India for the foreseeable future. The US is not going to withdraw economic stimulus soon. The IIP numbers are not a worry since the RBI has stated it is projecting a GDP improvement.
The economy may not have seen its worst as yet, but it will remain attractive for FIIs. We need to worry about short-term volatilities that saw net selling of $3.7 billion in June-August. Partial withdrawal of QE, rise in current account and/or fiscal deficit, and political instability could cause temporary but heavy selling by FIIs.
With GDP growth below 5 percent, a widening CAD, weaker rupee and growing inflation, it is unlikely the market can sustain high levels. The only way these levels can stay firm or the index can rise is if the macro data starts improving. This would require policy initiatives, or a change of guard at the Centre.
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Nov 09, 2013, 12.07 PM IST
In October, Cooper filed a complaint in Delaware Court of Chancery to push for completion of their merger and stated that the Indian firm was seeking to delay an agreement with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.
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Favourable 'partial ruling' in spat with Cooper: Apollo
In October, Cooper filed a complaint in Delaware Court of Chancery to push for completion of their merger and stated that the Indian firm was seeking to delay an agreement with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.
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Favourable 'partial ruling' in spat with Cooper: Apollo
In October, Cooper filed a complaint in Delaware Court of Chancery to push for completion of their merger and stated that the Indian firm was seeking to delay an agreement with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.
"We are pleased that the Delaware Court has found that Apollo is not in breach of its merger agreement with Cooper Tire. Furthermore, the Court found that Apollo has used 'reasonable best efforts' to negotiate with the United Steelworkers (USW) and that, contrary to Cooper's claims, 'nothing in Apollo's conduct indicates buyer's remorse'," Apollo Tyres said in a statement.
Apollo continues to believe in the merits of the combination and is committed to finding a sensible way forward, it added.
In October, Cooper filed a complaint in Delaware Court of Chancery to push for completion of their merger and stated that the Indian firm was seeking to delay an agreement with USW, which represents Cooper employees at facilities in Findlay, Ohio, and Texarkana, Arkansas.
Apollo had denied this but sought price reduction in the USD 2.5-billion deal citing problems related to the US firm's operations in China and concessions to the workers' union but was rejected by Cooper.
Earlier this week, Cooper had said it has reached tentative agreements with USW aimed at helping it close the deal with Apollo.
In June, Apollo had announced to acquire Cooper Tire & Rubber Co in an all-cash transaction valued at around USD 2.5 billion (nearly Rs 14,500 crore) and the merged entity was billed to become the seventh largest tyre maker in the world.
Apollo Tyres stock price
On November 08, 2013, Apollo Tyres closed at Rs 71.60, down Rs 1.45, or 1.98 percent. The 52-week high of the share was Rs 101.50 and the 52-week low was Rs 54.60.
The company's trailing 12-month (TTM) EPS was at Rs 6.56 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 10.91. The latest book value of the company is Rs 46.24 per share. At current value, the price-to-book value of the company is 1.55.
It has been 20 years that morgan stanley began operations in India. During this time, India's GDP moved from $260 billion to $1,842 billion, and India's MSCI Index outperformed the emerging markets by 28 percent. Ridham Desai, managing director at Morgan Stanley, reflected on the past and talked about the next 10 years to Forbes India. Excerpts:
Will the return on equity for Indian companies fall in the coming decade?
The capital productivity for India has halved over the past five years. Projects are being delayed or not getting approved. India's investment rate is around 34 percent, but to generate 8 percent growth, our capital productivity has to increase. We need to bring down the incremental capital output ratio to 4.5—it is now at 8. Once this happens, higher growth should ideally translate to higher earnings. Between May 2003 and May 2008, the RoE for India was at 20 percent. Today it is 16 percent, taking us back to 1994-1997.
How have sectors moved over the past five years?
The past five years belonged to the consumer sector. This was driven by increasing public consumption, which spiked due to NREGA and other incentives.
How do you see the banking and finance sectors unfold over the next 10 years?
The credit/GDP ratio is 57 percent: This shows India is one of the most under-penetrated economies in the developing world. In the next 10 years, it is possible to take this number to 75 percent. Credit can grow at around 15 percent, underlining our belief that this is one segment that will continue to expand. Aadhar cards will reduce the cost of acquiring customers in rural areas by almost 80 percent. Further, there are more reforms expected in the banking sector.
Click here to read more
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Indian market weakened for a third straight session on Thursday after Standard & Poor's said it may cut the country's sovereign rating if the next government fails to provide a credible plan to revive the economic growth.
The BSE Sensex closed down 0.35 percent at 20,822.77. The broader Nifty closed down 0.45 percent at 6,187.25. Indexes had earlier gained more than 1 percent, but started retreating after S&P reiterated its negative outlook on India's sovereign rating and put the onus on the new government to restore the country's growth and improve finances.
European equities closed flat on Thursday, despite initially rallying after the European Central Bank cut its main interest rate to 0.25 percent from 0.50 percent. US stocks declined sharply on Thursday, with the Dow Jones Industrial Average halting its record advance and Twitter's market debut drawing the spotlight, as investors reacted to an unexpected rate cut by the European Central Bank and a read on third-quarter US economic growth.
Global cues are subdued today with them SGX Nifty is showing 25 points cut in morning trade indicating that Indian market may open soft today and Nifty is expected to trade between 6230 and 6130 with downward biasness.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Nov 08, 2013, 12.26 PM IST
GMM Pfaudler Ltd has informed that the record date for payment of second interim dividend, if any, is November 22, 2013.
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GMM Pfaudler fixes record date for second interim dividend
GMM Pfaudler Ltd has informed that the record date for payment of second interim dividend, if any, is November 22, 2013.
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GMM Pfaudler fixes record date for second interim dividend
GMM Pfaudler Ltd has informed that the record date for payment of second interim dividend, if any, is November 22, 2013.
Nov 08, 2013, 12.29 PM IST
In an interview to CNBC-TV18, Leif Eskesen, Chief Economist for India and ASEAN at HSBC spoke about global economic factors.
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Fed may taper QE earlier than expected: HSBC
In an interview to CNBC-TV18, Leif Eskesen, Chief Economist for India and ASEAN at HSBC spoke about global economic factors.
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Fed may taper QE earlier than expected: HSBC
In an interview to CNBC-TV18, Leif Eskesen, Chief Economist for India and ASEAN at HSBC spoke about global economic factors.
In an interview to CNBC-TV18, Leif Eskesen, Chief Economist for India and ASEAN at HSBC spoke about global economic factors.
Nov 07, 2013, 12.27 PM IST
Ambareesh Baliga of Edelweiss Financial Services is of the view that one may see decent upside in Tech Mahindra.
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See upside in Tech Mahindra, says Baliga
Ambareesh Baliga of Edelweiss Financial Services is of the view that one may see decent upside in Tech Mahindra.
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See upside in Tech Mahindra, says Baliga
Ambareesh Baliga of Edelweiss Financial Services is of the view that one may see decent upside in Tech Mahindra.
He further added, " Eicher Motors has been performing well over the past couple of years and that will continue to do well and Prestige Estates Projects is one of the few realty companies which should continue doing well. There is a difference between Bangalore based realty plays and other realty plays like Delhi and Mumbai. So, people should be looking at the Bangalore based ones especially Prestige is one of them."
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