Posted tagged ‘ambani’

Politics and Money

July 10, 2008

I normally do not write about politics but this are special times! There is a chance that the government will fall (this is a defeat for Anil Ambani) or the government will survive (there is enough that AS and AA can do to irritate Mukesh).

However, there is a good chance that if the UPA government survives this scare, it will call for elections as soon as they announce some populist schemes. However in the meanwhile both the brothers will take a few millions from their market capitalisation, and this will hurt the sensex.

Congress and SP need to collect money for the elections (and for 5 years of unemployment perhaps) so you will find some shocking policies, and this will hurt. Badly.

Anil’s fight will mean Mayawati will not clear any proposal of his in UP. Reliance Power has quoted prices which are difficult to achieve in the best of situation. In a revised situation like this, I guess you will be able to get his share at the same price at which he took it.

If there is a “windfall tax” on Reliance, will Mukesh hit with a “you got cheap spectrum tax” on Reliance Communication? A good idea.

Uncertainty, political (business) fights, snatching Mukesh’s plane (posturing?), Chidambaram at his giving best – he telephones people to reduce prices while giving salary hikes to govt employees,…will see the market swing sensationally. So, like a broker told me buy puts and calls – both will make money if you do not panic!!


Innumeracy means you are weak in Mathematics

January 11, 2008

Innumeracy – a lack of understanding of mathematics. It keeps happening in the media all the time. Many writers and broadcasters do not understand the difference between “what cannot happen” and “what has not happened”. Yesterday Mr. Anil Ambani was saying that he has 100 million customers – i.e. about 10% of India’s population who use his services – mutual fund, life insurance, electricity, telephone etc.

Is this correct?

Well what about the double counting that has happened? What about the reliance subscriber who has a reliance mutual fund, life insurance and has reliance electricity connection at home? Well reliance power will enlighten us, I presume!