Manapurram insider trading

Shares of Manapurram Finance slipped by 10 per cent to ₹123.90 on June 7 th morning after Sebi
served a show-cause notice to company’s top five asset management companies (AMCc) including
ING Mutual Fund (now Birla Sunlife), SBI Fund Management, BNP Paribas, Ambit Capital and MFL on
charges of using price-sensitive information for trading in March 2013. During March 2013, between
March 19th and March 20th, the stock of Manapurram went down by 31 per cent after the company
shares information about large loan losses with analyst of Ambit Capital. The MF had hit an all time
high of ₹142 on June 6, 2019 before tanking.

Jet Airways Crisis

It was one of India’s top three airlines in the past decade. What led to crisis? As low budget flights
started flooding the market in the 2000s. without unnecessary extra features and embellishment,
and yet on-time flights, Jet Airways began dropping fares and in some cases, even below cost. Jet
underestimated low-cost carries and focused on corporates and failed to recognise that low-cost
carriers were attracting price sensitive customers. All the decisions were taken by a single
management team, headed by Naresh Goyal himself. The management spent more than it earned.
Their business model was fiddles which were confusing to the investors and passengers. The
fluctuation in global crude prices, and weak rupees contributed to its collapse.

Rate cut by RBI and implications

In order to boost the falling Indian economy, the Reserve Bank of India (RBI) lowered its repo rate to
5.75 percent, nearly nine-year low. This reduction in the repo rate is expected to bring the EMIs on
home and auto loans down, and reduce the debt repayment burden on corporates. This rate cut is
expected to witness a stable to lower interest rate cycle by increasing consumption rate which will
lead to more investment. A lower rate could boost both. With lower repo rate, the cost of short-
term rate is low, which could lead to the growth of economy in the coming days.

Micro economic triggers (eg. OPEC Leverage over Oil Prices, US China trade WAR)

Increase in oil prices will have an impact on the fiscal deficit, rupee, stock, inflation, etc. Oil is a
commodity and with fluctuation in its price, we get to see the commodity nature of it. Oil plays an
important role in the daily lives of Indians and, since, renewable energy game is still catching up in
India, price fluctuation could lead to an increase of price in agricultural products and transportation.
Daily household items are likely to see an increase in price as well and, as a whole, it could lead to
inflation, although there’s no strong correlation, it could very well be true in case of India. US-China
trade war could lead to dumping of Chinese goods in India at a lower price, which could lead to job
losses in India, if proper immune not taken into consideration.