A look at the frontrunners As Raghuram Rajan exits, a number of names are doing the rounds for the next RBI Governor - included in the list are two Arvinds (Panagariya and Subramanian), both sympathetic to Modi government policy, Urjit Patel, Deputy Governor at the RBI, SBI Chief Arundhati Bhattacharya, anti-corruption champion Vinod Rai, and bureaucrat Sumit Bose, best known for his SEBI report on bringing more transparency and fairness for customers in the mutual fund sector. Arvind Panagariya is widely perceived to be the frontrunner, although officials in the government have remarked that they may favor a bureaucrat over an economist this time around. Arvind Panagariya has praised the Gujarat Model in a book he co-authored with Jagadish Bhagwati, and is in favor of lowering interest rates, which has been a sticking point between Raghuram Rajan and Finance Minister Arun Jaitley, with Rajan resisting the government's push to lower interest rates in the face of inflation. Vinod Rai is another strong contender - Rai became a symbol of anti-corruption efforts in India with his work on the 2G report and his active push for greater accountability in government. Arvind Subramanian and Urjit Patel, aged 57 and 52 years are the youngest candidates on the list. (Click on the infographic to see more).
Where are India's VC deals happening? Sectors with the largest number of VC deals - amount and number of deals. Source: Atlas
Manufacturers lie awake at night, worrying about market share The prices of smartphones in India are falling at a rapid rate, as new companies fight it out to capture market share. Since March, there has been a flood of cheaper models, as competition heats up in a country where less than 20% of Indians own a smartphone. Between April 7 and June 1 alone, six new phone models were released priced at Rs. 4,999. The Sansui C10 released in June, priced at Rs.1,700. Videocon has also put phones on the shelf priced less than Rs. 2,000. Check out the infographic for the full lowdown.
Few of the top engineering colleges have a base fee less than Rs 1 lakh a year As college admissions near, students who qualify for engineering in India must figure out payment options for the next four years. In a country where average per capita income is below 1 lakh a year, even government supported colleges have high annual fees. IIT Mumbai is the most expensive IIT, while PSGCT Coimbatore is the cheapest private college in the top 20 list. This base fee does not include the additional fee structure that adds living expenses, food, books, etc. This points to the urgency with which we need better loan solutions for students and families. Check out the infographic for the cost to study at the top 20 in India.
Buzz for Reliance Jio is helped by an extra zero. Conflicting reports by PTI and IANS has resulted in media and in one case the same news daily, The Economic Times issuing two very different numbers on total subscribers for Reliance Jio 4G. One ET article for instance claims that Reliance Jio has seven lakh subscribers pre-launch, while a later ET piece on the same day claims the pre-launch number is 70 lakh subscribers. The answer to the puzzle lies in the data consumed per user. Reliance Jio had stated that its pre-launch users had consumed a total of 13 million GB of data, at an average of 18.5 GB per user. That calculation works out if the subscriber base is seven lakh users. Jio had launched an invite only, free 4G data plan to their staff. Each of the company’s employees were allowed to invite ten people to free 4G plans through a unique invite code. Since the plans were free people had a data buffet, which has resulted in great numbers for Jio to publicize. Thanks to the number of free users Jio has got, news outlets are already speculating that Jio will overtake Bharti Airtel in subscribers before launch. But Jio 4G is expected to be priced at Rs. 0.5/MB of data, and the price impact of this tariff on current free users is below. Still, the entry of Jio is likely to shake up the market. Analysts have predicted a steep fall in data prices with Jio’s entry - expecting it to drop from Rs. 0.23 per MB to Rs. 0.1 per MB by the end of the year. Reliance’s own shareholder releases show that promoters in the company have increased their stake by approximately 2.5% over the last nine months, reflecting their optimism. Data consumption/month per user (under free pre-launch plan) Post-launch price user would pay per month (under expected Reliance Jio 4G tariff) Kashmir 3.48 GB Rs 1740 North East 2.52 GB Rs 1260 Rajasthan 2.44 GB Rs 1220 Gujarat 2.1 GB Rs 1055 Nationwide 1.89 GB Rs 945
Get your financial freedom back Debt is in the news right now, but it’s not just Indian banks that are accumulating it. Ordinary Indians are seeing a big jump in their loans and debt payments. The average debt per rural family has jumped from Rs 7,500 in the last decade to Rs 32,500 now, a growth of 300%. Average debt in urban homes has gone up from Rs. 11,700 in the same period to Rs 85,000, a jump of 600%. Personal debts and loans are a problem many people find hard to talk about. But it’s important to get past the embarrassment - this is a common issue for many. And the lessons you learn in managing your debt well are valuable, ones that will help you manage money better in the future. How do you manage your debt? There are a few things you can do. STEP 1: Find out your CIBIL score If you are struggling to pay off a current loan, find out if you can get on a better plan or transfer your loan. The first step here is to find out your CIBIL score. The CIBIL score is something banks and loan providers check to see if they can lend you money with confidence. A good CIBIL score is anything above 750/900. You can find out the score through an online application on their website. Knowing your CIBIL score will help you assess whether you will qualift for a loan with better terms at your current bank or another bank. STEP 2. Negotiate payment terms on existing loans Speak to your bank with you CIBIL score in hand, to find out the best payment terms you can get. Also research other banks to see if there's a fairer loan on offer - you can then transfer your loan from your current provider. STEP 3. Take your credit cards out of your wallet/purse While you are resolving your loans, it’s important to remove the chances of accumulating additional debt on your credit cards. Make it as difficult as possible to pull out your credit card in order to spend. Put the cards deep inside a drawer, lock the cupboard, and keep the key somewhere far out of reach, so that you have to go through at least three steps to get your card. Or seal up the cards in several layers of paper and tape so that you will have to spend time opening up everything each time you have to use the card. Freeze your cards in a water container. Basically, you want to make it difficult for your future self to impulsively buy something. STEP 4: Identify your spending triggers. Look through your past bank statements, and debit/credit card records Our memories are faulty. We don’t really remember things all that well, especially things we feel guilty about, like overspending. So open your statements over the past few months and make a list: what were your biggest splurges and expenses? This will give you an understanding of what to watch out for. You don’t want your weaknesses to sneak up on you every time. This will help you stay out of debt in the future. STEP 5. Budgeting apps and software are your friends There are plenty of free budgeting apps out there that help you manage your money better on an ongoing basis. Check out this list for a free app that is suited to your particular needs. These personal finance apps automatically track your statements, help discover the best offers, and split expenses with your friends. STEP 6. Learn new saving hacks You shouldn’t stop having fun. But learn habits that help you make better choices and save, to avoid increases in debt and manage your current payments. Here are some examples of savings hacks: Make a list before going out shopping. It’s a simple step that will compel you to think before impulse buys not on the list. Check your mobile phone plan - can you get a cheaper one? Mobile phone bills often end up as a big part of your monthly spends. Do you enjoy what you currently spend money on? Find out events you can attend besides movies and pub trips, that are fun, like free live music events, art galleries, book clubs, trekking. These usually hurt your wallet less. Use extra cash that comes in to immediately pay off some of the debt you have, and put some money into a fixed deposit or savings instrument. Any additional money is a great chance for you to get yourself into a comfortable position financially. Avoid temptations: Install an adblock so that buying suggestions don't follow you around while browsing. If there's a store you tend to frequent. try a different route, listen to music/podcasts while you travel as a distraction. Gratitude: This is very Zen and known to work. Take a few minutes out everyday to think about what you are thankful for. Our brains are primed to respond to threats and negative triggers: it’s how we survived in the jungle. Noticing the positive requires an active habit, and it helps make you happier with what you already have. These habits are also surprisingly fulfilling. You will find out that it’s possible to have a richer life with a smaller outlay of cash! Good luck.
Who dominates the market, as each competes on price? Game of Thrones is racking up high television ratings, but here on the Indian roads another epic battle is raging. Uber and Ola are fighting to the death for taxi dominance, bringing down their rates and prices, and both claiming to be Numero Uno. It’s hard to know who really is the dominant player. In 2015, Ola had claimed that it had 85% share of the taxi business in India. Uber contradicted Ola a few weeks later, saying that Uber had 40% of the Indian market share in end 2015, up from 4% in January 2015. Then in March this year, Uber’s Eric Alexander claimed that Uber had close to 50% market share, and would beat Ola in market domination by April. By end April however, Ola stated that Ola Micro alone was bigger than all of Uber India combined. Recently however, Truecaller released an analysis of its database of 130 million registered users, and found that 4.1% of all calls were made to Ola, while 1.6% of calls were made to Uber. The question here is a) is the database representative? And b) does this point to coordination problems for customers with Ola drivers, rather than a larger market? The same Truecaller figures are a needle in Ola and Uber’s ballooning numbers. They show 94% of calls were to non Uber or Ola taxis. This could mean that both the so-called Goliaths are actually Davids battling over 6% of the market share. Either way, the companies are slugging it out, cutting taxi prices and offering customers deals. Ola Micro, a small car version that launched in February 2016 is the company’s cheapest offering yet, with the price at Rs 6/km to Uber’s Rs 7/km price. However, Uber’s other offerings, including its minis and sedans are usually cheaper than Ola across India (uber fares and ola fares vary slightly across cities). Uber rates have held steady on average, at Rs 7/km for the Go and Rs 9/km for the sedans. Uber is present in 68 countries, but Uber prices in India are now almost the lowest in the world. It costs around $1.3 to travel for 5 kms in an Uber in India. In England the same distance costs $16, and in Norway it crosses $32 (where only UberBlack is available). Uber sees the Indian market as a crown jewel - customer behavior here is not yet set towards owning cars. Car ownership in India is low compared to developed markets - the US has around 800 cars per 1000 people, in Europe it’s around 500, and in China its approximately 150. India has just 18 cars per 1000 people. Check out our infographic on the Uber Ola battle. We wait in the meantime, for part 2 of the series.
Gender/caste breakups and regional performance The JEE (Advanced) 2016 results were announced yesterday evening, and the summary is below. 52% of qualified candidates are general, and the remaining SC/ST and OBC. 13% of qualified candidates are women. IIT Bombay and IIT Madras lead in zone-wise performance. Check out our infographic below for the analysis.
Research report summary for this week! Six company stocks saw BUY reports from analysts. One stock with ACCUMULATE. Seven stocks came in as HOLD/NEUTRAL. PICK of the week: PNC Infratech Ltd, which has received five price upgrades over the last six months from Angel Broking, HDFC Sec and ICICI Securities. The most recent report from Angel Broking on 8th June 2016 has recommended that investors ACCUMULATE this stock with a new target price of Rs 647(up from Rs 558). The average target price of PNC Infratech from 4 brokers is Rs 674. Date Stock Target Upside Type Price on report date Broker Upgrades/downgrades - last 6 months 2016-06-03 Balaji Amines Limited - BALAMINES 310 +29.44 BUY 221 Nirmal Bang - 2016-06-03 Blue Star Limited - BLUESTARCO 495 +12.5 BUY 415 Angel Broking 1 upgrade till date 2016-06-03 Grindwell Norton Limited - GRINDWELL 780 +14.71 BUY 685 ICICI Securities Limited 2 upgrades till date 2016-06-03 HEG Limited - HEG 150 +0.07 HOLD 149.75 ICICI Securities Limited - 2016-06-03 NHPC Limited - NHPC 23 -6.31 HOLD 24.7 ICICI Securities Limited 1 upgrade till date (target met) 2016-06-03 SML Isuzu Limited - SMLISUZU 1294 +25.63 BUY 1050.5 Karvy - 2016-06-03 Tech Mahindra Limited - TECHM 700 +30.91 BUY 550.2 Angel Broking 1 downgrade till date 2016-06-06 Butterfly Gandhimathi Applia - BUTTERFLY 180 +4.65 HOLD 163.1 ICICI Securities Limited - 2016-06-06 Maharashtra Seamless Limited - MAHSEAMLES 240 +0.84 HOLD 230.95 ICICI Securities Limited - 2016-06-06 Titan Company Limited - TITAN 355 -2.45 NEUTRAL 353 Phillip Capital 2 upgrades till date 2016-06-08 MEP Infrastructure Developer. - MEP 73 +93.12 BUY 39 BOB Capital Markets Ltd. - 2016-06-08 NIIT Technologies Limited - NIITTECH 525 -2.78 HOLD 540 ICICI Securities Limited 2 upgrades till date 2016-06-08 OnMobile Global Limited - ONMOBILE 137 +22.38 HOLD 111.95 Nirmal Bang - 2016-06-08 PNC Infratech Limited - PNCINFRA 647 +13.53 ACCUMULATE 566 Angel Broking 5 upgrades till date
Manage your budgets with this definitive list If you want help managing your money with an app, which one do you go for? Look no further. We go through the most useful apps to manage your money - we examine the big guns, as well as the rising challengers. And one app just had to be mentioned for its unusual approach. THE BIG GUNS Moneyview - Your Money Manager Over 1,000,000 installs Money management and savings options This app creates a full financial summary for you automatically: it auto-tracks your information, adding details based on your financial SMSes and bank statements you get. It gives you bill payment reminders, allows you to track a budget, and identifies savings options to put in your money. The app also claims to be highly secure, not reading any sensitive data - it does not collect your full bank account numbers, no OTP, and no netbanking login/passwords. Link Walnut Money Manager Over 1,000,000 installs The Social Money Manager Another autotracking, autofilling app, so that your fingers don’t hurt. This app has a strong social approach, and assumes you do a lot of spending while out with other people. You can split expenses with friends and also send reminders to the ones who owe you money (including that one guy who always ‘forgets’ his wallet at home). \ You can also look up information about restaurants and events and share with your friends. Also keep track of your taxi and movie bookings: in a way this app acts as your money manager and also your butler. Jeeves knows what’s in your wallet. Link UP AND COMING: Top Contenders SmartSpends: Money Manager App Over 100,000 installs Analytics and offers The SmartSpends app like the others, tracks your spends and financial footprints automatically. It also offers you some interesting analytics: how much did you spend over the weekend compared to weekdays? This app may help you curb your worst party-spender instincts, where you wake up the next day with a splitting headache and an empty wallet. This clever little app also claims to help identify offers on your debit and credit cards, throwing up suggestions on which card to use where. Link Gullak Expense Manager and Money Saver Over 100,000 installs Analytics and offers This app does all the essentials, autotracking, splitting of expenses, providing graphs and charts to know your particular weaknesses when it comes to money. You can manage multiple user accounts and sync across devices. Link MOST INNOVATIVE Mvelopes Budget App Over 50,000 installs Savings, old-school style For sheer inventiveness, Mvelopes takes the cake. The app is based on what your grandma used to do: put money in an envelope, mark it as ‘next month’s groceries’ and keep it inside a locked cupboard. Mvelopes lets you keep money in virtual envelopes for different uses, marking them as EMI payments, shopping bills, school fees, and so on. You get alerts when one envelope is almost empty. It provides real-time budgeting updates and imports your bank and card statements as well. Link That’s the roundup! Keep an eye out for the next FridayList.
