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R.Ranganathan M.Sc., [ MBA - IIMA]     Just some blunt, forthright views       on some subjects / outfits

 
     
 

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Business TV
 

 

written in 2006: No major change in contents thereafter
 
 
A Business Portal should be strong on facts and analysis. 
   
  The reporting by CNBC - TV 18 and ND Profit, after the May 2006 Market Crash, was awfully inadequate in content, analysis, research, balance in presentation and in approach.

The presentations continue to lack depth, balance and serious / meaningful analysis for the benefit of the viewers  - This view of 2006, has only got reinforced and strengthened as of July 2007

These 2 business channels are like any other news channel. I do wish that they improve


 
 
One shocking ExampleSheer Negligence or carelessness or total irresponsiblity 
  London Metal Exchange / LME deals with non ferrous metals. It has nothing to do with 'Ferrous' which means Iron / Steel.

The over emphasis by the Channels and the Print Media that LME Metal crash was a catalyst for metal shares in Indian share market is a monumental case of irresponsiblity

Linking 2 unrelated things and confusing / scarring the public was and continues to the irresponsible act of the Media to this day. The different metals have different usage pattern and prices. Clubbing them all together and making a hoarse, desperate cry was unwarranted.

Imagine the chaos, if the price of Mercury, a metal, goes down and these TV channels continue with their reporting standard in 2008 as they did in 2006 ?

 

Advertisement panels on site:  I do not endorse any other commercial skin / hair product as I do not even retail my own invention, Swapna, in this site. Effective 28th July 2008, I have gradually released this site  to Google to place their advertisements panels. This is to generate some revenue - if they do not clash with my views. These mechanically placed advertisements can be reviewed only after September 5, 2008

 

 
Misreporting / improper verification
   
  Foreign Institutional Investments alias FIIs: - NOT WITHDRAWING FROM THE MARKET

On 3rd June, 2006, NDTV Profit reported that Foreign Institutional withdrawals is a cause for the downfall, continuing volatility and the subdued market response despite favourable factors like GDP growth

They had withdrawn just 8000 out of 150000 crores investment - hardly 5%. The monthly investment figures for FIIs and Mutual Funds after October 2005 will show that on the whole, FIIs have been bigger investors compared to MFs except in May 2006

Making mountain of a mole hill !


 
 
Expert Views - or self serving trashes
   
  MARK MOBIUS

On 12th May, 2006,  both the Channels reported that in Mark Mobius view, if the market undergoes 20% correction, the stock prices would become attractive for FIIs / more FIIs.

As of 2nd June 2006, the Market has undergone almost 25% correction in terms of prices many liquid stocks. Sensex has dropped to almost 10000. Where are the FII inflows ? So even this comment of Mobius is way out of the mark. And the channels vie with one another to dish out such trashes.

Never believe a word of these so called Experts: question / review the judgement and dependability of channels that rush to blare such nonsense without any review whatsoever

 You want Proof?
Mark Mobius admission in a Newspaper or a channel in November 2006 - Indian shares are fairly priced today when the sensex is 12900, because of the growth factor 

 
 
POOR RESEARCH & ANALYSISNomura
   
  The TV channels reported on Wednesday or Thursday, 1-6-2006, that Sensex Valuations should be around 7000, as per Nomura. The channels blare this discovery as if they are 'bringing world wide opinions' to the public

Why Nomura stayed in India after Sensex crossed 7000, how opportunistic were they if they stayed on, and the methods / products for such 'sudden brainwaves' are neither asked nor answered.

Isn't that basic, if the viewers also have to take them as 'experts' like the Channels did and continue to do !

Nomura continue with India when the sensex crossed 13000 in November 2006. It indicates short sightedness and poor analysis of the fundamentals by the Television and the Print Media


 
 
Irresponsible Reporting
   
  CNBC and ND Profit TV channels never clearly mentioned the percentage of Japanese Funds in the total FII Investment of 150000

As per a chart shown in ND Profit, 3500 Crores of Japanese Funds have gone out. As per moneycontrol.com, on 4-6-2006, the withdrawal may be between 200 to 300 Million Dollars. That is, at best, about 1400 Crores.

This is less than 2% of total FII Investment. Both the business channels reported that the Japanese withdrawals impacted the marketSuch a small percentage can hardly have any major impact. It is not balanced and responsible reporting


 
 
Currency for CNBC
   
  In CNBC 18, the figures are more often mention in American Dollars - what do they want to prove ? Are they reporting for the Indian Public or for persons in America, Russia and Greenland ? 

They continue with this 'catching up with the Jones, self imagined, high level of reporting' as of July 2007 also. 

 
OVERLOOKED and  INCONVENIENT  but a very Relevant and ESTABLISHED FACT
   
  Mukesh Ambani / Reliance Petroleum Limited got 140000 Crores from the Indian Public. 

One Company can raise the amount, roughly equal to the total FII investment of over 400 companies, from the INDIAN PUBLIC IS A REMARKABLE FEAT

Does it not indicate 'the willingness of the public to invest and the money that can be garnered by the right company' ?  One can say it is a speculative investment. Let us grant that. But the basic point is, one has to invest in Shares for higher returns than Bank Interest - you cannot get that without taking any risk 

R.Ranganathan

20:12 04-Jun-06

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