It was an afternoon of numbers, graphs and some hard facts as Mr.Bruce Hilland and Mr.Ghanshyam Dass of STJ Advisors held the class of EPGP 2012 captive here at IIM Bangalore.
The speakers started off by delivering an insight to the workings of financial markets and the various dynamics that govern the same. There is currently a significant amount of uncertainty in financial markets worldwide and the speakers touched upon the high volatility that is currently prevalent. The prevailing trends in the US, Indian, Chinese and Eurozone economies were highlighted and correlated with their financial markets’ performances.
The seminar was characterized by a sharp focus on the Indian equity markets and trends.
The speakers talked about the Nifty (or the NSE index) and explained its composition, recent performance and observed volatilities.
No equity markets discussion could be deemed complete without a mention of the Lehman fiasco and more recently the Eurozone crisis and the speakers did not disappoint the audience on both counts. The trending of the Lehman shares during the window of the collapse was discussed and was perhaps the most enticing part of the presentation for the market analytics oriented people in the class. The discussion on the Eurozone crisis was no less interesting as the speakers compared the strong performance of the Indian banks relative to the declines of some of the top western banks in light of the troubles inEurope. This was followed by an intellectually stimulated discussion on the facts of the comparison.
The last part of the seminar saw the speakers touching upon two large equity new issues; the big IPO of Facebook and the recent follow-on offering of ONGC back here inIndia. Both these offerings were characterized by unusual pricing strategies and the speakers did a magnificent job in demonstrating the irregularities and the outcomes which followed.
The speakers stressed upon the need for management students to follow developments in the financial markets on a regular basis, to be aware of the global macro economic trends and what is impacting share prices. This would help both their professional lives (career advancement) and personal lives (investment returns). One helpful piece of advice was to always review a stock chart ahead of any job interview with a listed company. These points were well taken by the students of EPGP at IIMB.