Citizens' Issues
Facebook cancels Indian student's internship
Facebook cancelled an Indian-origin student's internship after he exposed a serious privacy flaw in the social media giant's messenger service, a media report said.
 
Aran Khanna's application, Marauder's Map, used data from Facebook Messenger to map users' location when they sent messages, Boston.com reported on Wednesday.
 
The computer science and math student at Harvard University in Massachusetts, US, posted about his app on social media sites Reddit and Medium in May this year and soon it went viral. 
 
The app caught the attention of Facebook and Khanna was asked to disable it.
 
However, before it was disabled, the extension was downloaded more than 85,000 times and "shared on over 200 publications", according to Khanna.
 
About a week later, Facebook released a Messenger app update to provide users "full control over when and how you share your location information".
 
Facebook cancelled Khanna's summer internship, saying he did not meet the high ethical standards expected from the interns.
 
The student accepted another internship with a tech start-up in Silicon Valley and later detailed the experience in a case study titled 'Facebook's Privacy Incident Response: A study of geolocation sharing on Facebook Messenger' in the Harvard Journal of Technology Science.

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Nifty, Sensex may dip again - Thursday closing report
Nifty will have made a temporary bottom, only if it closes above 8,430
 
We had mentioned in Wednesday’s closing report that while the market indices may put in a short bounce, the trend is lower. On Thursday, the indices in the Indian stock market improved and managed to close marginally higher, encouraged by positive macroeconomic government data. With the boost in market sentiment, the market is likely to hold, rather than suffer a sharp decline.
 
 
The Indian equity markets closed flat on Thursday, as the initial gains made on the back of positive macro-economic data diminished on account of the government's inability to pass key economic legislations on the last day of the monsoon session on Thursday.
 
Nevertheless, after three days of continued losses this week, the barometer 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) closed 37 points up. The index had lost a total of 724 points during the first three trading days of the week.
 
The wider 50-scrip Nifty of the National Stock Exchange (NSE) also gained marginally -- by 6.40 points or 0.08 percent at 8,355.85 points.
 
Investors were seen hopeful of a rate-cut based on healthy macro-economic data points which were released late on Wednesday.
 
The macro-economic data points showed a fall in India's annual retail inflation rate to 3.78 percent in July and a rise in the factory output to 3.8 percent in June.
 
The market rallied in the morning and was up 279 points at one point during the day. The initial gains receded as negative cues such as the impasse over GST (goods and services tax) bill, and devaluation of the Chinese yuan coupled with a depreciating rupee impacted investor sentiments.
 
On the global front, the devaluation of the yuan just before the US Fed's monetary policy decision impacted the Indian rupee which fell to a 24-month-low at Rs.65.23 to a dollar.
 
On the bright side of the volatile day's trade, the possibility that the government might extend the "Monsoon Session" or call for a "Special Session" of parliament to pass the GST bill kept investors optimistic about the future of the key economic legislation.
 
Lately, investors have been reluctant to chase higher prices given the possibility that the reform process might be stalled due to the government's inability to conduct business in parliament.
 
Sector-wise, healthy buying was observed in banks, healthcare and automobile stocks, while metal, consumer durables and technology, entertainment and media (TECK) scrip came under selling pressure.
 
The S&P BSE bank index increased by 140.54 points, followed by healthcare index which gained by 139.27 points and automobile index which rose 81.02 points
 
However, the S&P BSE metal index tanked by 217.98 points, consumer durables index declined by 109.75 points and the TECK index tripped by 35.66 points.
 
The top gainers and losers of the major indices are given in the table below:
 
 
Among the Asian markets, Japan's Nikkei was up 0.99 percent, Hong Kong's Hang Seng gained by 0.43 percent, and China's Shanghai Composite Index rose by 1.76 percent. 
 
The closing values of the major Asian indices are given in the table below:
 

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Misleading ‘equity’ category, arbitrage schemes, attract Rs3,500 crore in July
Equity mutual funds seem to attract huge inflows, but half of the net inflows in July 2015 have come into arbitrage schemes
 
Equity mutual fund schemes have been recording net inflows in each consecutive month since May 2014. With net inflows of over Rs10,000 crore in each month of the June 2015 quarter, the net inflow in July 2015 dropped to Rs6,133 crore. It is also to be noted that the data includes inflows from arbitrage schemes as well. We had highlighted here that arbitrage schemes accounted for nearly 25% of the equity mutual fund inflows for the six months ended June 2015. According to data from ICRA Online, approximately Rs3,500 crore flowed in to arbitrage schemes in July 2015. This means that over half of the net inflows in July 2015 were contributed by arbitrage schemes. 
 
Arbitrage schemes are labelled equity schemes by the Association of Mutual Funds of India (AMFI), but they should be classified separately as they only take advantage of the arbitrage opportunities available in the equity market. Hence, arbitrage schemes are considered an alternative to low-risk liquid schemes. Grouping these schemes along with other equity diversified schemes is incorrect.
 
Redemptions of equity schemes in July 2015 increased substantially to Rs7,794 crore according to AMFI data. Sales too, fell to its lowest since March 2015. Equity schemes (including arbitrage schemes) reported sales of Rs13,927 crore in July 2015.
 
Among the funds that got major inflows in July were ICICI Prudential Balanced Advantage and Reliance Arbitrage Advantage (Rs 700 crore each) while Motilal Oswal MOSt Focused Multicap 35 attracted an inflow of over Rs500 crore. About Rs200 crore flowed out of IDFC Premier Equity, probably, on concerns of the future performance of the schemes. About Rs180 crore each flowed out of HDFC Equity and HDFC Top 200.
 
Two new fund offers brought in Rs148 crore in July 2015. Mutual fund folios increased to 3.55 million as on 31 July 2015 from 3.31 million an on 30 June 2015. While the CNX Nifty index was up 1.96% in July, equity assets under management increased by 5.72% to Rs3.93 lakh crore from Rs3.72 lakh crore. 
 
Gold exchange traded fund (ETFs) have lost their sheen due to the continuous decline in gold price. The ETF reported a net outflow in each of that past 12 months. In July as much as Rs50 crore flowed out from gold ETFs. As, much as, Rs826 crore was redeemed from gold ETFs over the past year. Gold ETF AUM declined by 23% to Rs5,957 crore from Rs7,773 crore a year ago. The number of folios too fell by 5% to 460,850 folios from 485,394 folios a year ago.
 
 

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COMMENTS

S.K

2 years ago

Nothing misleading about the equity-oriented nature of Arbitrage Funds since its investments are entirely in equities - both cash & derivatives. What is misleading is only the title of your article!

REPLY

Nilesh KAMERKAR

In Reply to S.K 2 years ago

When you invest in equity, you become a part owner to the extent of your holding. You are entitled to vote. You are also entitled to receive dividends.

None of the above benefits accrue to you as holder of derivatives

You find nothing misleading? Really?

S.K

In Reply to Nilesh KAMERKAR 2 years ago

We are talking about mutual funds, not direct equity. I think you are confused.

Nilesh KAMERKAR

In Reply to S.K 2 years ago

Is their no difference between

1)Owning an asset (part /fractional ownership) for long periods of time so as to create lasting wealth

&

2)Simultaneous buying & selling of securities in cash or derivatives, in order to take advantage of differing prices for the same asset

Point no.2 above goes against the very spirit of mutual funds. Because the single most important objective of mutual funds is to pool household savings as 'long term' capital.

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