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https://www.financialexpress.com/market/ipo-institutional-share-issues-value-jumps-62-in-fy20-qips-alone-account-for-over-rs-51000-crore/1917165/ | Indian equity markets were able to better their performance when it came to raising money via IPOs, OFS and QIPs along with other capital raising tools in the last financial year 2019-20, injecting a total of Rs 91,670 crore, up 62 per cent from that in the previous fiscal. Bulk of the money was raised by the thirteen Qualified Institutional Placements (QIP) that the public equity markets saw, as the funds raised reached a staggering Rs 51,216 crore. The largest QIP of the fiscal was from telecom major Bharti Airtel, which managed to raise Rs 14,400 crore, accounting for 28 per cent of the total QIP amount raised, according to Prime Database.
During the financial year 2019-20, equity markets witnessed 13 IPOs among which SBI Cards and Payments Services was the biggest. In total the 13 IPOs were able to gather Rs 20,350 crore, an increase of 38 per cent from the previous year’s Rs 14,719 crore, that too with one less IPO than the previous year. The Highest amount that Indian equity markets have seen coming in from IPOs was in the Financial year 2017-18 when 45 companies entered the market raising Rs 81,553 crore.
According to PrimeDatabase, the response to the IPOs in the fiscal was largely good. IRCTC was subscribed the most at 109 times followed by Ujjivan Small Finance Bank that was subscribed 100 times. A total of 8 IPOs received bids over 10 times. According to Pranav Haldea, Managing Director, PRIME Database Group, response to IPOs was further buoyed by strong listing performance of IPOs of the year. “Of the 13 IPOs which got listed, 7 gave a return of over 10 per cent (based on closing price on listing date). IRCTC gave a stupendous return of 128 per cent,” he said.
In 2019-20, for the first time since trading in the SME platform started, activity declined in the segment. There were only 45 SME IPOs, which collected a total of Rs. 436 crore in comparison to 106 IPOs in 2018-19 which collected Rs. 1,620 crore, making it the worst performance by SME IPOs in the last four years.
During the period under review, Offer for Sale (OFS) saw a decline as only Rs 17,326 crore were raised through this method. Government of India’s divestment plans made up for Rs 1,134 crore of the total money raised via OFS. SBI Life Insurance and Avenue Supermarts were the biggest OFS raising more than Rs 3,400 crore each.
The biggest contribution came from QIPs that mobilized Rs 51,216 crore, 388 per cent more than the Rs 10,489 crore raised in the previous year. The total amount raised by equity markets the previous year was just a notch up at Rs 56,485 crore. Although Bharti Airtel was the biggest contributor to the segment, it was dominated by banks and NBFCs.
Talking about what is in store for the new financial year, Haldea said, “Just when things were starting to look up for the primary market, the coronavirus pandemic outbreak has wreaked havoc. The IPO pipeline continues to remain strong with 26 companies holding SEBI approval wanting to raise nearly Rs. 26,056 crore and another 6 companies wanting to raise nearly Rs. 7,500 crore awaiting SEBI approval. However, it is highly unlikely that any of these issues will hit the market till the time the uncertainty around coronavirus ends.” | a total of Rs 91,670 crore was raised by the 13 Qualified Institutional Placements (QIPs) that the public equity markets saw. the largest QIP of the fiscal was from telecom major Bharti Airtel, which managed to raise Rs 14,400 crore. the highest amount that Indian equity markets have seen coming in from IPOs was in the Financial year 2017-18 when 45 companies entered the market raising Rs 81,553 crore. | Positive |
https://www.financialexpress.com/money/why-this-is-the-time-to-buy-stocks-of-great-companies/1955537/ | By Rachit Chawla
Stock market investors are worried as businesses have come to a halt because of the lockdown due to the Covid-19 pandemic. Share prices have crashed and investors have lost money. However, investors should not take any knee-jerk decisions in these volatile times.
What not to do
If you are holding a stock in a good company that has shown progress over the years but is down now because of Covid-19 pandemic, you shouldn’t be too eager to sell your stocks. Investors who are patient will reap the rewards later. One of the easiest ways to make money in the markets is to invest in growing companies and ignoring the ups and downs that will occur from time to time. Stock market rewards patient investors. In the global financial crisis of 2008, TCS fell by more than 50% within a span of two years. But once things stabilised, it made a comeback from Rs 125 a share to Rs 2,284 in 12 years with a CAGR of 30%.
Another great example is of Bajaj Finance, whose stock prices fell by over 80% during the span of one year from 2007 to 2008. However, in the current market, it is counted among the largest wealth creators in the country.
Another mistake is that people end up buying stocks in a company simply because the price has fallen. Buying cheap stocks will only lead to profit if the company is good enough to last long term. There are plenty of companies in existence today that will cease to exist within a decade and you would end up losing your money. So make sure that if you are investing, invest long term and in a company that is going to make a comeback.
What should you do
It is like they say, a crisis is also an opportunity. A pandemic of this scale is a one-off occurrence and it will create investment opportunities for people to generate a fortune over the next decade or so. One just has to trust the statistics. Moreover, there are companies that have faced such crises before and they’ve always came back stronger. Such companies can be easily identified by studying their stock trends which are always inching higher and higher.
Even with the shutdown in place, people will be buying groceries and other household stuff and companies such as Hindustan Unilever that manufacture these products will continue to generate wealth as they have in the past.
Every crisis looks smaller in the hindsight. So four to five years from now, we’d all be looking at this time as an excellent buying opportunity. Those who do not invest for the fear of losing their money will come to regret their decision in the future.
Some investors who own stocks in successful companies are selling those stocks now at cheaper prices because business outlook is poor this year. They should, however, not forget the fact that in the long term, these companies are going to bounce back and the drops they are currently suffering would look negligible in a couple of decades. Such is the power of long-term investment. This present crisis has created an opportunity for smart investors to buy stocks in great companies.
A common mistake that investors make during times of crises such as this is that they end up investing in low-priced cheap, cyclical stocks—which hurts them in the long run. Those investors who remain calm and invest in great companies despite the current bleak scenario will reap the benefits n the future.
The writer is founder & CEO, Finway | investors should not take knee-jerk decisions in these volatile times. a pandemic of this scale is a one-off occurrence and creates investment opportunities for people to generate a fortune over the next decade or so. a company that has shown progress over the years but is down now because of the covid-19 pandemic should not be too eager to sell its stocks. | Positive |
https://economictimes.indiatimes.com/markets/forex/pimco-says-emerging-currencies-are-near-cheapest-in-two-decades/articleshow/72103328.cms | Bloomberg
Asian emerging-market currencies are cheap and an imminent US -China trade deal means this is a good time to buy them, according to Pacific Investment Management Co.The money manager favors Indonesia’s rupiah and Malaysia’s ringgit, and is considering adding positions in China’s yuan, said Roland Mieth, emerging-markets portfolio manager at the company in Singapore. Pimco has also reduced short positions on the trade-reliant currencies of South Korea, Taiwan and Singapore, he said.“According to our valuation models, currencies around emerging markets are closer or close to the cheapest levels in the last two decades,” said Mieth at Pimco, which oversees about $1.9 trillion globally. “This is something that we recognize and are seeking opportunities to add to currencies.”Emerging-market assets are rallying as the world’s two-biggest economies edge toward a deal that could stop their year-long trade war from worsening. White House economic adviser Larry Kudlow said Thursday talks on the first phase of a trade agreement with China were coming down to the final stages.The Bloomberg JPMorgan Asia Dollar Index, which tracks 10 regional currencies against the greenback with the heaviest weightings for the yuan and Korean won, has risen 2.3 per cent since sliding to a 10-year low in September.Pimco says that while an easing of global trade tensions will help emerging-market assets, some offer better value than others.“From a metrics perspective, I’d say the Indonesian rupiah is one that stands well, the Malaysian ringgit as well,” Mieth said.The rupiah is also attractive due to the “market friendly” make-up of the new Indonesia cabinet, which should be supportive for Indonesian assets, he said.Indonesia’s President Joko Widodo last month reappointed former World Bank managing director Sri Mulyani Indrawati as finance minister in his new cabinet. Other recent additions have included Nadiem Makarim, co-founder of ride-hailing service Gojek.The country’s interest-rate cycle is also about to turn, Mieth said. Bank Indonesia will make at most one-to-two more rate cuts in this phase, after reducing borrowing costs four times this year, he said.Pimco may look to add positions in the yuan if the US and China made visible progress in their trade talks, agreeing for example, to roll back tariffs, Mieth said. The money manager reduced short positions on the won, Taiwan dollar and Singapore dollar over the past three-to-six months as the currencies are now placed to perform better than they were when trade tensions were escalating, he said.While Pimco is positive on most Asian emerging currencies, it is less so toward India ’s rupee.“The rupee is OK in the metrics, but I’d say given other dynamics in India we’re more hesitant to add risk in India at the moment, particularly given the recent downgrade by Moody’s,” Mieth said.The rupee tumbled as much as 0.5 per cent on Nov. 8 after Moody’s Investors Service cut India’s credit-rating outlook to negative on, citing a range of problems including a credit squeeze among non-bank financial institutions, a prolonged economic slowdown and rising levels of public debt.Here are some of Mieth’s other views:-Volatility will probably continue to fall or remain subdued next year in Asia due to low inflation-Biggest risks for emerging markets are a possible reversal of US -China trade progress and the threat of a global recession-Negative sentiment from the unrest in Hong Kong isn’t likely to spill over to other asset classes in the region unless China takes more active measures, such as military intervention, but the probability of that happening is low. | the money manager favors Indonesia’s rupiah and Malaysia’s ringgit. he is also considering adding positions in china’s yuan. the rupiah is also attractive due to the “market friendly” make-up of the new Indonesia cabinet. the bank is expected to make at least one-to-two more rate cuts in this phase. | Positive |
https://www.businesstoday.in/current/economy-politics/nirmala-sitharaman-press-measures-revive-sagging-economy-likely/story/379011.html | Finance Minister Nirmala Sitharaman on Saturday announced a series of measures to boost exports and real estate sectors in the country. To boost export, the FM said the scheme of Remission of Duties would completely replace all Merchandise Exports from India Scheme from January 1, 2020. The FM said the Centre was working to reduce 'time to export' by leveraging technology further, and that the action plan to reduce turn-around time at airports and ports bench-marked to international standards would be implemented by December 2019. To boost the housing sector, the FM said the government would set up a special window worth Rs 10,000 crore to provide last mile funding for housing projects, which are non-NPA (Non-performing asset) & non-NCLT (National Company Law Tribunal) projects & are net worth positive in affordable and middle income category. "The objective is to focus on construction of unfinished units," the FM said. The special fund size of Rs 10,000 crore would be contributed by the Centre and roughly the same amount would come from outside investors, said the FM.
Catch all the live updates on Nirmala Sitharaman's presser on BusinessToday.In Live blog
3.52 PM: The FM announces Rs 10,000 crore special window for last-mile funding of housing projects. | the scheme of Remission of Duties will replace all Merchandise Exports from India Scheme from January 1, 2020. the action plan to reduce turn-around time at airports and ports bench-marked to international standards will be implemented by December 2019. to boost the housing sector, the government will set up a special window worth Rs 10,000 crore to provide last mile funding for housing projects. | Positive |
https://economictimes.indiatimes.com/industry/media/entertainment/fancode-to-live-stream-bundesliga-matches-in-india/articleshow/78184554.cms | MUMBAI: Indian fans of German football league Bundesliga will finally get to watch all the matches of the league after FanCode, the multi-sport aggregator platform by Dream Sports, signed an exclusive partnership with Bundesliga International. Indian fans were left in a lurch after the league's Indian broadcast rights holder, Star India did not renew its deal, which ended this year. FanCode has signed an exclusive multi-year partnership for Indian region with the DFL Deutsche Fußball Liga subsidiary. With the deal, for the first time, Indian football fans will have access to every single game from the league, including the German Supercup which this year takes place between Bayern and Dortmund.“FanCode is committed to bringing depth and breadth to the sports experience in India by promoting a multi-sport culture through digital innovations,” said Yannick Colaco, co-founder of FanCode. “We have an opportunity to bring a new-age experience to Indian sports fans that are tailored to their preferences.” The Bundesliga features some popular clubs, including the current UEFA Champions League winner, FC Bayern München, along with Borussia Dortmund, RB Leipzig, FC Schalke 04 and VfL Wolfsburg. The top players of Bundesliga include Robert Lewandowski , Thomas Müller, Erling Haaland, Marco Reus and Manuel Neuer.Prasana Krishnan, co-founder, FanCode, added, “While the popular European league is widely followed by avid football fans across the globe, the league is gaining traction among Indian football fans as well. There are many local fan clubs that enjoy and immensely follow the league in India. With this partnership, Bundesliga becomes our largest football association and our flagship football property. Together, we will bring comprehensive fan experience to Indian sports fans like never before and further support in increasing the popularity of football in India.” Besides live streaming, FanCode will allow its users access to coverage of the league, including game highlights, news, live blog commentary, fantasy research resources and more.Through this partnership, the Bundesliga will have direct reach to 100 million unique Indian sports users that are part of the Dream Sports ecosystem, the company said. “India is one of the largest and fastest markets for digital growth and this opportunity to utilise FanCode was a key factor in our decision making,” said Robert Klein, CEO, Bundesliga International. The 2020-21 season, that begins on September 18, will see the defending champions FC Bayern launch the 58th Bundesliga campaign with a home game against FC Schalke 04 at the Allianz Arena in Munich, Bavaria. The Bundesliga is also associated with Dream11 as their official fantasy sport partner. | dream sports aggregator FanCode has signed an exclusive multi-year partnership with the German football league Bundesliga. the deal will give Indian fans access to every single game of the league, including the german supercup. the 2020-21 season, that begins on September 18, will be the first of its kind in the country. the top players of the league include Robert Lewandowski, Thomas Müller, Marco Reus and Manuel Neuer. | Positive |
https://www.livemint.com/industry/agriculture/states-press-the-reform-button-when-pandemic-locks-agriculture-in-11588876520485.html | States across India have been speeding up farm sector reforms, prompted by the crippling of supply chains of farm produce and the food processing industry by the covid-19-induced lockdown.
Uttar Pradesh(UP) has announced freeing up of its agriculture market, which will allow farmers to sell from their homes and earn better value for their produce by skipping the wholesale market.
UP, the fifth-largest state economy in the country that depends heavily on agriculture, is embracing decentralisation in the farm sector by amending an over-five-decade-old law governing wholesale markets or mandis. The Bharatiya Janata Party (BJP)-ruled state led by chief minister Yogi Adityanath has cleared amendments to the UP Krishi Utpadan Mandi Adhiniyam of 1964 through an ordinance, according to an official statement.
The decision by UP mirrored steps announced by BJP-ruled Madhya Pradesh(MP) last Saturday to free up farm produce markets in the state.
Analysts said the opening up of the market for agricultural produce will help ensure better access to raw materials for the food processing industry, at a time the more-than-a-month-long lockdown has severely curtailed movement and economic activities in large parts of the country. Both UP and MP opted to designate warehouses and cold storages as private mandis.
The UP government said in a statement on Wednesday that it excluded 46 fruits and vegetables from the exclusive purview of mandis so that there are no trading curbs. These include fruits like apple, mango, banana, water melon, pomegranate and vegetables like green pea, bitter gourd, radish and lady’s finger.
“With this, the sale of these fruits and vegetables can be procured from farmers in the villages and can be traded in the state without any restrictions," the statement said.
Farmers will no longer have to pay any mandi tax, which totals about ₹125 crore a year. The farmers would however have to pay a charge for using infrastructure if they chose to sell in mandis.
The need to quickly free up the farm produce market was highlighted by Prime Minister Narendra Modi, who on Saturday held a meeting on farm sector reforms in which issues such as farm produce marketing, management of marketable surplus, access of farmers to institutional credit and freeing agriculture sector of various restrictions were discussed. Agriculture and allied activities account for more than 160 million workers, making it the country’s largest employment generating sector as per the 2011 census.
Experts said lifting trading curbs on farm produce was the need of the hour. “The harvest season has just ended and at this point when supply chains are broken, farmers need this measure (abolition of mandi tax so that they can sell directly). Farmers borrow and invest and now is the time for them to recoup their investments and repay loans. To get remuneration, markets have to be functional which they are not at this point. Movements of trucks is also limited," said Himanshu, associate professor at Jawaharlal Nehru University and visiting fellow at the Centre de Sciences Humaines, New Delhi. He said that mandi tax is a source of revenue for the states and that the Centre could compensate states for removing it as the income sources of states are limited at this juncture.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | UP has announced freeing up of its agriculture market. farmers will be able to sell from their homes and earn better value. 'decentralisation' means amending law governing wholesale markets. move mirrored steps announced by BJP-ruled Madhya Pradesh. 'farmers will no longer have to pay any mandi tax, which totals about 125 crore a year' | Positive |
http://www.financialexpress.com/market/commodities/oil-prices-rise-on-lower-us-drilling-activity/1118016/ | Oil prices rose on Monday, lifted by a drop in US drilling activity as well as by expectations that the United States could re-introduce sanctions against Iran. US WTI crude futures were at $65.18 a barrel at 0025 GMT, up 24 cents, or 0.4 percent, from their previous settlement.
Brent crude futures were fetching $69.67 per barrel, up 33 cents, or 0.5 percent.
Stephen Innes, head of trading for Asia/Pacific at futures brokerage OANDA in Singapore, said oil markets remained nervous about “whether or not the US administration will scrap or maintain the fragile nuclear deal with Iran.”
Innes said prices were also supported by a weekly report that there was a drop in activity of drilling for new oil production in the United States.
U.S. drillers cut seven oil rigs in the week to March 29, bringing the total count down to 797 <RIG-OL-USA-BHI>, General Electric Co’s Baker Hughes energy services firm said in its closely followed report last Thursday. It was the first time in three weeks that the rig-count fell.
Baker Hughes published its North American rig count report on Thursday, one day earlier than usual, due to the Good Friday holiday on March 30.
Oil prices have generally been supported by supply restraint led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia, which started in 2017 in order to rein in oversupply and prop up prices.
Liquidity on Monday will be low as many countries, especially in Europe, will still be on Easter holiday. | oil prices rose on Monday, lifted by a drop in drilling activity in the us. oil markets remain nervous about 'whether or not the us administration will scrap or maintain the fragile nuclear deal with Iran'. rig count fell for the first time in three weeks due to the Good Friday holiday. rig count was published on thursday, one day earlier than usual. | Positive |
https://economictimes.indiatimes.com/markets/bonds/rbi-may-launch-30-35-billion-nri-bonds-in-q3/articleshow/65312134.cms | Mumbai: The Reserve Bank is likely to issue non-resident bonds worth USD 30-35 billion in the third quarter if the rupee plumbs the 70-mark and if overseas inflows do not revive, says a report."We continue to believe that the finance ministry /RBI will issue NRI bonds in the December quarter-- raising USD 30 -35 billion - if the rupee crosses Rs 70 to the dollar without any turnaround in FPI inflows," Bank of America Merrill Lynch said today.It can be recalled that after the rupee hit 68.85 in summer of 2013 following the taper tantrum talks by the US Fed, the RBI was forced to launch the maiden NRI bonds and mopped up USD30 billion with a three-year matrurity.It estimates the current account deficit to be jump to 2.4 per cent of GDP in the current fiscal and expects the RBI to sell USD 20 billion to fund that, if FPI inflows continues to remain dry or plungees to zero."This will pull down import cover to 9.3 months in FY19 and 8.4 months in FY20 towards the eight months we deem necessary for rupee stability," the American brokerage said.The report said government bond yields are capped by market expectation of large scale RBI open market operations, about USD 50 billion after October with FPI inflows drying up."We expect the RBI to step up OMO to USD 50 billion by March, if FPI flows do not revive, with durable liquidity contracting by USD 10 billion," the report said.It said our liquidity model forecasts that money markets will slip into deficit in August (Rs 18,500 crore) and September (Rs 91,400 crore) updated for end-July data.According to the report, RBI will have to inject USD 37 billion of reserve money/durable liquidity in FY19 to fund 6 per cent old series GDP growth. | bank of America report says RBI will issue non-resident bonds in third quarter. it estimates current account deficit to be jump to 2.4% of GDP. bank of America says it expects to sell USD 20 billion to fund that. it expects the RBI to step up OMO to USD 50 billion by march. RBI will have to inject USD 37 billion of reserve money/durable liquidity in FY19 to fund 6% old series GDP growth. | Positive |
https://www.financialexpress.com/industry/e-commerce-companies-focusing-on-ai-virtual-reality-to-cut-logistics-cost-and-fraudulent-orders/1217959/ | E-commerce companies are focusing on artificial intelligence and virtual reality with a view to cut logistics costs and identify fraudulent orders, said a report by global auditing and consulting firm PwC. With an emerging middle-class population of more than 500 million and approximately 65 per cent of the population aged 35 or below, India represents a highly aspirational consumer market for retailers across the globe, said the PwC TechWorld report. “E-commerce players are revamping their technology strategies to maintain their competitive edge. Most e-commerce platforms are upping their investments in areas such as conversational commerce, artificial intelligence (AI), virtual reality (VR)/augmented reality (AR) and analytics technologies,” it said.
It observed that to identify fraudulent orders, reduce return rate and also cut down on logistics cost, e-commerce companies are investing in robotics and AI heavily. “AI-based voice-based shopping in vernacular language enables deeper customer engagement and smoothens the transition from offline to online by overcoming the language barrier,” it added. Then there is advanced analytics that allows for better optimisation of stock management as well as customisation of content based on data-driven understanding of consumers’ online behaviour and preferences.
Also, there are blockchain technologies that improve fraud detection and enable companies to offer a secure and transparent online medium as it helps in determining authenticity in multi-party transactions and expedite payment settlement, PwC said. “Almost all customer interaction for online retailers occurs via phone or email and involves banking information or personal data, e-commerce sites are particularly vulnerable to cyber-attacks.
“Given the recent episodes of data breaches and alleged misuse of customer information, the need for adopting appropriate security measures has escalated significantly,” said Sandeep Ladda, PwC India Partner.
The report further highlighted that frauds or data thefts cause not just financial loss but also reputation damage and consequently loss of business, which is detrimental in today’s global digital economy.
According to research from the Ponemon Institute, in 2017, India recorded the largest average number of breached records at 33,167 (global average = 24,089). | report by global auditing and consulting firm PwC TechWorld. e-commerce companies are investing heavily in robotics and AI. to identify fraudulent orders, reduce return rate and also cut down on logistics cost, e-commerce companies are investing in robotics and AI heavily. in 2017, india recorded the largest average number of breached records at 33,167 (global average = 24,089) | Positive |
https://economictimes.indiatimes.com/industry/banking/finance/mastercard-usaid-join-hands-for-project-kirana-to-empower-women-through-financial-inclusion/articleshow/79302150.cms | New Delhi: Global payments technology major Mastercard has joined hands with development agency USAID for the Project Kirana that will help increase revenue streams, expand financial inclusion and digital payments adoption of kirana shops that are owned or operated by women. To begin with, as many as 3,000 such women are targeted to be enrolled under this project in certain places in Uttar Pradesh.Mastercard said that around the world, gender inequality limited women-owned businesses' ability to launch, grow and thrive.To address these gaps, Mastercard and the United States Agency for International Development (USAID) have partnered under the Women's Global Development and Prosperity Initiative (W-GDP) to launch Project Kirana, it added."It is a really powerful initiative. It is the extension of what we are doing in many markets and we have committed in a large part of India. Globally, we have committed USD 250 million towards supporting SMEs (small and medium enterprises)," Porush Singh , division president (South Asia) of Mastercard, said while announcing the partnership at a virtual event on Thursday.He added that in India, the company has committed USD 33 million. "It is a large chunk...to help bring SMEs and empower women entrepreneurs for the next five years."Recently, Mastercard announced a commitment of Rs 250 crore (USD 33 million) to help reboot Indian SMEs and enable business recovery amid the COVID-19 pandemic.As part of the commitment, the company has launched multiple initiatives in India in helping small businesses go online by growing digital payments.The initiatives will also drive inclusive growth by enabling small merchants and kirana stores with access to credit and empower women entrepreneurs by increasing their business acumen.Project Kirana will work to increase revenue streams, expand financial inclusion and digital payments adoption of kirana shops that are owned or operated by women, Mastercard said.The two-year Project Kirana programme will be implemented by DAI and ACCESS Development Services in select cities of Uttar Pradesh, including Lucknow, Kanpur and Varanasi. The programme will focus on building financial and digital literacy skills on banking, digital payments, saving, credit and insurance."Creating equal opportunities for women in business is not only a question of gender equality but also an economic priority. At Mastercard, we believe in levelling the playing field for women entrepreneurs," said Alison Eskesen, vice-president of Mastercard Center for Inclusive Growth.He added that it becomes imperative to help women unlock their potential, strengthen their skills and enhance their participation in business.Karen Klimowski, acting India mission director of USAID, said the partnership between USAID and Mastercard is an example of the US government's commitment to collaborating with the private sector in achieving sustainable development outcomes, such as the global women's economic empowerment.USAID has a global network of more than 186 gender advisors who work to accelerate USAID's gender work worldwide."Global prosperity will remain out of reach if we exclude half the population. At USAID, we believe investment in women is key to unlocking human potential on transformational scale," said John Barsa , acting administrator of USAID, in the release.Singh said India is one of the countries with the highest gender gap in the world. "Project Kirana is strategically designed to support women with a suite of skills and knowledge to increase their access to financial services and ultimately bring them into the formal economy." | Mastercard joins hands with USAID for the project Kirana. the two-year project will focus on building financial and digital literacy skills. the company has committed USD 33 million in India. it is a "powerful initiative" and will help bring SMEs and empower women entrepreneurs. a spokesman for the company says the project will be a "very positive step" | Positive |
https://www.financialexpress.com/industry/avendus-capital-looks-to-treble-asset-management-business-aum-to-usd-3-billion-by-2024/2113443/ | Leading investment bank Avendus Capital, which recently rejigged the top management as part of completing two decades of operations, is betting big on the asset management vertical, looking to treble its AUM to over USD 3 billion by 2024, a top company official has said.
Currently, the asset management business manages a little over USD 1 billion of assets. Its management, led by co-founder and vice-chairman Ranu Vohra, has set a target of taking it to over USD 3 billion (over Rs 22,000 crore) over the next four-five years and to ensure that half of the incremental growth comes from overseas.
The asset management business deals with private equities, long-only funds and alternate funds. Of the total assets under management (AUM), around Rs 1,000 crore are from overseas, he said.
“Currently over 80 per cent of our AUM are domestic. Our objective is to bring it down to 50 per cent and increase the overseas share to 50 per cent by the time we hit USD 3 billion-milestone,” Vohra told PTI in an interview.
The Avendus Group was founded by Vohra (executive vice-chairman), Gaurav Deepak (chief executive) and Kaushal Aggarwal (chief executive, Avendus Finance) in 1999 in the city, and has since grown to have 10 offices spanning seven major metros in the country and New York, London and Singapore.
“Our flagship Avendus Capital has established itself as a leading i-banker and is doing well, having completed around USD 20 billion worth of deals since 2007 in mergers and acquisition (M&As) and private equity (PE) deals,” Vohra said.
“Given the speed at which wealth is being created in the country, we see huge scope for asset management business going forward. As we enter the third decade of operations, we’ve set a target of trebling our AMC business to USD 3 billion over the next four-five years from USD 1 billion now,” he added.
The investment banking (i-banking) arm of Avendus Capital has completed M&As worth over USD 10 billion, and USD 9.4 billion of PE deals since 2007.
The wealth management vertical manages assets close to USD 4 billion, and its credit business arm Avendus Finance, which is a joint venture with KKR India, has extended syndicated loans close to USD 500 million.
In the past 24 months, Avendus Capital has done 38 deals, including nine during the lockdown. Some of the top deals include Ola, Swiggy, Lenskart, Delhivery, Bookmyshow, Gaana, Eastern Condiments, among others.
On managing the lockdowns, Vohra said, “We have been able to face down the pandemic well, having completed nine deals during the lockdowns, including sale of Eastern Condiments. Of the nine, six worth USD 850 million were completed in September alone.”
Attributing the company’s growth to the rising risk-taking abilities of its clients, Vohra said, “The good news is that despite the pandemic, the risk-taking mindset is back. Look at the rally in the stocks markets, look at the quantum of money being deployed by family offices.”
This is visible in the number of deals that Avendus closed in September.
It opened the month advising Eruditus on USD 113 million series-D funding from Leeds Illuminate and Prosus Ventures in the first week of September, followed by Meeran family and McCormick selling Eastern Condiments to Oslo-based food manger Orkla for Rs 2,000 crore in enterprise value.
Then there was USD 15 million Softbank investment in Unacademy, followed by Dream Sports’ USD 225 million fund raising, Acko’s USD 60 million fund raise from Munich Re and Amazon, and Onsitego’s USD 30 million funding from IFC in the last week of the month.
Since the Group has grown very large in the last five years, Vohra said going forward, the focus will be on stitching together the right solutions for clients in i-banking business on one hand and growing asset management business larger on the other.
Credit business will continue to grow in tandem with the economy, he added. On Ocean Dial fund buyout in 2017, he said the fund is fully owned by Avendus now and is traded on the London Stock Exchange. Its open-ended India-focused fund has doubled in past six months to Rs 1,300 crore.
On Avendus Finance, Vohra said, it is currently a Rs 1,000-crore vertical. It is very important to the company’s overall growth strategy as it forms an upper layer, but the company will not put money into realty, infra and non-banking financial companies, he said.
The group has put in Rs 600 crore of equity into the credit business so far, most of which came from KKR, he said. | leading investment bank Avendus Capital is betting big on the asset management business. the company recently rejigged the top management as part of completing two decades of operations. it is looking to treble its AUM to over USD 3 billion by 2024. of the total assets under management (AUM), around Rs 1,000 crore are from overseas. the company has completed around USD 20 billion worth of deals since 2007. | Positive |
https://www.financialexpress.com/money/hyderabad-real-estate-emerges-most-resilient-returns-to-normalcy-faster-than-other-cities-report/2061612/ | Hyderabad continues to show resilience and its real estate dynamics kept up the momentum according to the JLL-CII report “Hyderabad Real Estate – A Road Map amid the COVID -19 crisis,’’ launched today. The city’s real estate performance was far better in H1 2020 as compared to other cities in India. Its formal economy was one of the first in urban India that resumed its stability as the lockdown rules were relaxed.
Despite the nationwide lockdown, in Q2 2020, Hyderabad continued to witness relatively good office leasing and residential sales. Once construction activities resumed in May 2020, the city also saw the supply of new office buildings in addition to new residential projects. Hyderabad also led India’s office supply with a 30% share in H1 2020, significantly driving the country’s office absorption with an 18% share during the same period. Further, the city reported strong sales with the least unsold inventory in India which can be offloaded within two years.
“Hyderabad’s resilience comes from the confidence of doing business instilled by the state government. The business-friendly policies of the government has helped corporates leverage the existing ecosystem in the state to maximize output and emerge as the destination of choice. For example, the growth of the IT sector in the state: While national IT exports grew by 8% in 2019-20, IT exports here grew by 18% in the same period. Owing to its robust and fast developing infrastructure along with ease of living, offering a cosmopolitan environment, today, Hyderabad is a major destination for India’s young workforce,” said Ramesh Nair, CEO & Country Head, India, JLL.
In JLL’s latest GRETI (Global Real Estate Transparency Index) report in 2020, India experienced higher improvement and it is in the cusp of becoming a transparent economy. The focus of the government on sustainability transparency with focus on wellness and PropTech adoption drove this improvement.
Hyderabad has been one of the forerunners in India in these parameters. This further strengthens investor confidence in the city’s real estate. Through the much-appreciated TS-iPass, ICT Policy and other investment friendly initiatives by the state government, the city has witnessed a major economic growth in the last six years.
“Hyderabad’s positive reaction to the crisis has reflected tremendously in the city’s real estate performance. The focus of the government on business-friendly policies has helped Hyderabad emerge as a one of the leaders despite the global pandemic,” said Sandip Patnaik, Managing Director – Hyderabad, JLL. He further added, “Impressive investment in the infrastructure sector and the state’s fast track execution has tremendously contributed to the city’s real estate growth. An active real estate market and strong economic growth along with a thriving start-up culture have helped the city to gain one of the leading positions globally.”
To understand the depth of the crisis and the reaction of stakeholders, JLL conducted a survey to understand the strategies of the top ten developers in various sectors and interviewed corporate leaders of companies in Hyderabad.
The results of these surveys and discussions on each sector are as follows:
Office Real Estate – As the city opened in early May 2020, construction activity resumed in a few projects and a few office projects started operations by June 2020. A total supply of 3.7 million sq. ft was added in H1 2020. Demand dynamics also remained strong as a few key office leases with large area were closed after the lockdown was relaxed in May 2020. The city reported an absorption of 2.1 million sq. ft in H1 2020 which dropped the city’s vacancy rate to 9.2 %.
Residential Real Estate – Hyderabad witnessed highest quarterly launches ever during the lockdown period in Q2 2020. Most of these launches were in the northern and eastern submarkets. Despite the healthy volume (of launches), good sales kept the city’s unsold inventory at the lowest in the country. Construction resumed in many projects in the city, albeit at a slow pace due to reverse migration of construction laborer’s during the lock down.
Retail Real Estate – Developers in Hyderabad offered rental waivers or rental deferments to battle the ongoing crisis. Highstreets in Hyderabad, meanwhile, gave some relief to the retailers as they are a relatively cost-effective solution to malls in these tough times. Leasing activity has continued in Highstreet retail properties. Construction of upcoming malls has resumed, although at a slow pace.
Urban infrastructure development of fringe area with tech solutions, diversification of economic base and development of new economic hubs will assist Hyderabad’s real estate sector to overcome this storm and emerge stronger. Digital technology solutions like the Internet of Things (IoT), AI, sensors and geospatial technology, can be used to gather accurate data and detect real time problems to efficiently manage the urban infrastructure of the city. As office assets showed confidence of high growth and stable returns for the medium to long-term, global institutional investors and sovereign wealth funds showed an increasing interest in the city over the past few years.
While the state government gave confidence to corporates through its business-friendly policy support in H1 2020, it utilised the lockdown period to upgrade the city’s urban infrastructure and aesthetics by employing labour who otherwise would have been unemployed. Hyderabad recorded the highest office net absorption in 2019 (as a proportion of existing stock) compared to any city globally, while standing among the world’s best-performing cities for prime office rental growth according to the recent JLL City Momentum Index (CMI) 2020 report. | the city's real estate performance was far better in H1 2020. it is one of the first cities in urban india that resumed stability. the city also saw the supply of new office buildings and residential projects. it also led india’s office supply with a 30% share in H1 2020. the city is in the cusp of becoming a transparent economy. | Positive |
https://www.moneycontrol.com/news/business/markets/will-end-fy19-with-better-numbers-than-last-year-can-fin-homes-md-3254581.html | Reserve Bank of India (RBI) has relaxed the securitisation norms for non-banking financial companies (NBFCs), particularly housing finance companies (HFCs). SK Hota, Managing Director of Can Fin Homes, spoke to CNBC-TV18 about how this would affect their business.
"We hope things are improving as far as the economy is concerned and we are in the best part of the year. This is the best period for the HFCs and the housing market which starts with festive season. Things are improving and there is everything positive hereon," Hota said on December 5.
Talking about how the liquidity stress has eased in the NBFC space, he said, "There has to be some positive sentiment as far as this NBFC space is concerned. There has been so many positives either infusing liquidity through the open market operation (OMO) or for that matter the new changes in the securitisation. As far as Can Fin is concerned, we are comfortable with liquidity. It is a cycle that once in a while these sort of levels are positive for the industry."
"From September last week onwards, the rates have gone up but it has been very positive for Can Fin Homes, we have been in a position to pass on those rising costs to the borrowers. The competition has eased so we have been in a position to gain in terms of the yield as well," said Hota.
With regards to the financial performance, Hota said, "When we compare year-on-year (YoY) – you cannot look at the numbers on a quarter-on-quarter (QoQ) basis – certainly the financial year 2019 will end with better numbers compared to the previous year."
Source: CNBC-TV18 | SK Hota, Managing Director of Can Fin Homes, spoke to CNBC-TV18. he said the NBFC space has been 'comfortable with liquidity'. the norms have been relaxed for non-banking financial companies (NBFCs). hota said the 'best period for the HFCs and the housing market' | Positive |
https://www.financialexpress.com/industry/amid-covid-cisis-maharashtra-eyes-investment-from-uk-midc-signs-mou-with-uk-india-business-council/2013466/ | The ongoing COVID-19 pandemic has greatly impacted daily lives and the economy at large owing to the global lockdown and physical distancing measures in place. While globally and in Maharashtra, the healthcare systems have scaled up to meet this unprecedented challenge, the economic response will determine the long-term effects of this pandemic.
Maharashtra Industrial Development Corporation (MIDC) in its efforts to ensure the state continues to be the flagship investment destination, held a virtual roundtable discussion together with the UK-India Business Council (UKIBC) today in the presence of senior delegates of the government of Maharashtra, the government of United Kingdom, MIDC, UKIBC and industry leaders.
The agenda of this roundtable was to reiterate Maharashtra’s commitment towards India-UK relations and also to appraise the delegates of the various policy interventions and initiatives undertaken by the state such as creation of plug and play infrastructure with ready to use factory spaces, land parcels earmarked for industries, an accelerated permissions model ‘Maha Parwana’ which grants permissions as quickly as 48 hours, a state operated job portal – ‘Maha Jobs’, a unified search platform, dedicated country desks and many more.
A Memorandum of Understanding (MoU) between the MIDC and the UKIBC was also signed today to collaborate and share information that can help improve connections between UK businesses and the state of Maharashtra, including by facilitating investor interactions in the UK and in Maharashtra, which will include a dialogue on the ease of doing business.
The MoU establishes a broad-based understanding between the MIDC and UKIBC on the areas of collaboration and mutual interest. B Venugopal Reddy, Principal Secretary (Industries) government of Maharashtra said “Maharashtra state looks forward to further strengthen its business relations with the United Kingdom by diversifying and expanding the activities and with a thrust on manufacture of engineering components, capital goods and industry 4.0.
Dr P Anbalagan, Chief Executive Officer, MIDC said “MIDC reiterates its determination towards the sustenance of our enhanced relations between Maharashtra and the United Kingdom. The MoU with UKIBC reflects our enduring support the UK business showcasing their commitment towards intensifying strategic investment plans in Maharashtra.”
Speaking on the occasion, Kevin McCole, Managing Director of the UKIBC said “I’m really pleased to be enhancing our already strong relationships with the government of one of the most business-friendly states in India. We have already achieved a great deal together and today’s signing of this MoU will take our partnership to the next level. This, I think, is vitally important because as our economies and societies recover from the COVID-19 pandemic the need for expanded trade, investment and collaboration between the UK and India will only increase”.
Alan Gemmell, Trade Commissioner of South Asia, Department for International Trade and British Deputy High Commissioner for Western India was also present at this event to represent the United Kingdom. Other key participants of the event included representatives of British Deputy High Commission, British Standards Institution (BSI) BAE Systems, Barclays Bank, HSBC, JCB, Arup Group, Perkins Engines, Rolls-Royce, Sheffield City Region and West Midlands Growth Company | Maharashtra industrial development corporation held virtual roundtable discussion with the UK-India Business Council (UKIBC) agenda of the roundtable was to reiterate Maharashtra’s commitment towards India-UK relations. delegates also appraised of various policy interventions and initiatives undertaken by the state. a Memorandum of Understanding (moU) between the MIDC and the UKIBC was also signed today. | Positive |
https://www.businesstoday.in/markets/ipo-corner/route-mobile-ipo-issue-subscribed-215-times-on-day-2-so-far/story/415694.html | The initial public offer of Route Mobile has been subscribed 2.15 times so far on the second day of bidding i.e. Thursday. The Rs 600-crore public offer of Route Mobile, a cloud communications service provider, received bids for 2.55 crore shares as against the total issue size of 1.21 crore shares, according to data available with the exchanges.
The category meant for non-institutional investors was subscribed 129 per cent, that for qualified institutional buyers (QIBs) was subscribed 1.21 per cent, while retail individual investors' portion was subscribed 3.73 times.
The IPO was fully subscribed on the first day. The public offer received bids for 1,22,31,600 shares as against the total issue size of 1,21,73,912 shares. The portion for non-institutional investors was subscribed 46 per cent, that for qualified institutional buyers (QIBs) was subscribed 1 per cent. The retail individual investors' portion was subscribed 1.80 times.
Route Mobile on Tuesday garnered Rs 180 crore from anchor investors. The initial public offer comprises a fresh issue of Rs 240 crore and an offer for sale of Rs 360 crore.
Price range for the offer, which will close on Friday, has been fixed at Rs 345-350 per share.
The company proposes to utilise the net proceeds for repayment or pre-payment, in full or part, of certain borrowings of the company, acquisitions and other strategic initiatives, purchase of office premises in Mumbai, and general corporate purposes.
ICICI Securities, Axis Capital, Edelweiss Financial Services and IDBI Capital Markets and Securities are the managers to the offer.
Also read: Happiest Minds IPO subscribed 151 times on Day 3 | the initial public offer of Route Mobile has been subscribed 2.15 times. the cloud communications service provider received bids for 2.55 crore shares. the IPO was fully subscribed on the first day. the company on Tuesday garnered Rs 180 crore from anchor investors. the price range for the offer, which will close on friday, has been fixed at Rs 345-350 per share. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/food/amul-turnover-grows-17-to-rs-38550-crore-in-2019-20/articleshow/74942395.cms | The Gujarat Cooperative Milk Marketing Federation Ltd, which markets Amul milk and dairy products, reported a 17% increase in turnover to Rs 38,550 crore in the year ended March 31. The Amul group’s turnover exceeded Rs 50,000 crore, which is also 17% higher than last year. Amul Federation has achieved a Compound Annual Growth Rate (CAGR) of more than 17% since last 10 years because of higher milk procurement, continuous expansion in terms of adding new markets, launching of new products and adding new milk processing capacities across India, the company said in a statement on Wednesday.It is important to note that Amul federation has achieved turnover inspite of adverse market condition for dairy products at national as well as at international level, managing director RS Sodhi said. Amul’s 18 member unions, with more than 3.6 million farmers across 18,700 villages of Gujarat, procure on average 23 million litres of milk a day.Other than the Amul brand of dairy products, the unions market food products and cattle feed. Close to 80% of the revenue reaches the farmer members of the dairy cooperatives as the cost of milk procurement and bonus. | the Gujarat Cooperative Milk Marketing Federation reported a 17% increase in turnover to Rs 38,550 crore in the year ended March 31. the group’s turnover exceeded Rs 50,000 crore, which is also 17% higher than last year. the company has achieved a Compound Annual Growth Rate (CAGR) of more than 17% since last 10 years. close to 80% of the revenue reaches the farmer members of the dairy cooperatives as the cost of milk procurement and bonus. | Positive |
https://www.businesstoday.in/markets/commodities/goldman-says-too-much-too-fast-commodity-rally-unsustainable/story/406502.html | The rally across commodities has gotten ahead of fundamentals with the exception of metals, Goldman Sachs (GS.N) said in a note dated Tuesday, adding that it was hesitant to recommend a long position this early in the cycle. The Wall Street bank sees downside risks in agricultural and energy markets, citing the recent strength as surprising given the massive inventory overhangs and depressed demand.
"Without a shift in balances, any rally in physical commodity markets is unsustainable," Goldman said, adding the climb was "too much, too fast in oil, but not metals." The metals markets are tight and "extremely strong" Chinese demand from construction and infrastructure sectors in May has exceeded even the most optimistic projections, analysts at the bank said.
"Combined with COVID-19-related supply disruptions and a lack of scrap availability due to the lockdown, metals markets are left with relatively little inventory." The lender is forecasting 3-month returns of 0.8% for industrial metals, -9.5% for energy complex, -8.6% for precious metals and -7.4% for agriculture.
On a 3, 6 and 12-month horizon, Goldman sees returns of -7.5%, 2.7% and 13.1% on commodities over the S&P GSCI index. The year-to-date return on commodities is seen at -34.2%, compared with 17.4% in 2019. Oil production will be incentivized to return as prices reach $40 per barrel, which substantially increases downside risks and markets are now looking for a 15-20% correction, the bank said.
In the agriculture sector, Goldman said corn and sugar are set for historically large levels of production this year even as coronavirus-induced disruptions dampened their demand outlook. Meanwhile, the bank expects gold to reach $1,800 per ounce on a 12-month basis and the tail risk of above-target inflation as a potential driver for prices to climb beyond $2,000.
Also read: Why Parle-G, other biscuit brands' sales shot through the roof during lockdown | gold, silver, gold and silver are the most volatile commodities. gold is expected to reach $1,800 per ounce on a 12-month basis. gold is expected to reach $1,800 per ounce on a 12-month basis. gold is expected to reach $1,800 per ounce on a 12-month basis. a gold bull market analyst says the bank is "very optimistic" about the future. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/gsi-discovers-250-kg-gold-reserves-near-jamshedpur/articleshow/76235741.cms | Kolkata: Geological Survey of India (GSI) on Saturday announced it has discovered nearly 250 kg of gold reserves beneath the earth in Bhitar Dari village in Jharkhand's East Singhbhum district. The village is about 20 km. south of the steel township of Jamshedpur A final report on this has been submitted to the Government of Jharkhand on the June 3 2020, GSI said in an official statement. "This has paved the way for auctioning of gold mines of this area, which would be carried out soon," the statement added.The news is likely to bring much needed cheer to India's battered domestic economy as it staggers out of a stringent lockdown even as the country battles the Covid-19 pandemic.The report states that the mining stretch of Bhitar Dari-Hakegora areas has a mineable gold resource of nearly 250kg. During the course of work, six boreholes were drilled over a strike length of approx. 600 m. Resource assessment was done through analysis of 709 no. of core samples which augmented 340354.7(0.34 million tonnes) tonnes of gold ore with an average grade of 0.71 g/t with 0.4 g/t cut off and a total of 55196 tonnes of ore with an average grade of 1 g/t with 1 g/t cut off. The resource falls under 333 category, as per UNFC classification. The GSI report also indicated that gold would have to be mined from up to a depth of nearly 150 metres in Bhitar Dari area. The report is a G-3 stage report.The resource bearing report was handed over by Janardan Prasad, Deputy Director General, GSI SU : Jharkhand to Aboobacker Siddique P , Secretary (Mines), Govt. of Jharkhand in presence of A K Sharma, Director (T.C.) and Pankaj Kumar, Project Director from GSI, SU: Jharkhand and Faiz Aq Ahmed Mumtaz, Director (Mines), Smt. Kumari Anjali, Director (Geology) & Kumar Amitabh, Deputy Director (Geology), Department of Mines and Geology, Government of Jharkhand. A team led by Pankaj Kumar, Director carried out the survey, mapping and sampling in Bhitar Dari since 2013-14 while senior geologists Abhishek Das and Nandu Khalkho carried out the drilling process in the year 2017-18 & 2018-19. The backdrop of the present work consists of untiring efforts by the geologists of the Geological Survey of India since the F.S. 2009-10, when a G-4 stage investigation for gold in the Bhitar Dari-Gotigora-Hakegora areas was conducted along with detailed mapping, which lead to delineation of 600 m of potential zone in the area, the statement said. Pankaj Kumar, Director was associated with it since inception from F. S. 2009-10, as a senior geologist. | a final report on this has been submitted to the Government of Jharkhand on the June 3 2020. the village is about 20 km. south of the steel township of Jamshedpur. the news is likely to bring much needed cheer to india's battered domestic economy. the news is likely to stagger out of a stringent lockdown even as the country battles the covid-19 pandemic. | Positive |
https://www.financialexpress.com/economy/rbi-governor-shaktikanta-das-gives-growth-mantra-for-india-says-cant-rise-without-going-global/1822466/ | While India’s manufacturing growth has remained under pressure in the current fiscal year, RBI Governor Shaktikanta Das said India should strive and become a part of the global manufacturing value chain to boost growth in today’s era. He said that India had been fairly insulated from the global value chain in the past which also protected India at the time of global slowdown, but it cannot be a justification for remaining permanently away from it for far too long. “For a major economy such as ours, which is increasingly making its global presence felt, it is necessary to play a significant part in the global value chain. I am sure that the policymakers in the government will give due attention to this aspect,” said RBI Governor Shaktikanta Das.
There are a number of steps that have been taken in this direction in recent months and years, however, more steps are necessary, he added. January bulletin of the RBI shows growth prospects in a few other sectors as well. Other than manufacturing, food processing, textiles, and tourism sectors are shown as the key sectors to tap for growth.
Also Read: WPI inflation jumps to 7-month high in December; skyrocketing food prices hit both CPI, WPI
Meanwhile, as India has yet not come out of the prolonged slowdown, many companies are not availing their working capital limits to the full, which has kept the investments away from the markets. It points to some slowdown in the economic activity and on the other hand, it could also imply that they have an adequate surplus with them which is being used to meet their working capital requirements, said the RBI report. It also indicated that a certain amount of capital available in the system needs to feed into the investment cycle to keep the momentum up.
Shaktikanta Das also said the markets were somewhat surprised by RBI’s action a little ahead of time, in terms of reduction in policy rate as early as in February 2019, when the RBI anticipated that momentum for a slowdown is building up. The RBI further cut the interest rates four times in a row after February 2019. However, the central bank surprised the markets by maintaining the status quo in the policy rates in its MPC meet in December. | RBI Governor Shaktikanta Das says India should strive and become a part of the global manufacturing value chain. he says it is necessary for a major economy such as ours to play a significant part in the global value chain. he says there are a number of steps that have been taken in this direction in recent months and years. RBI has cut the interest rates four times in a row after February 2019. | Positive |
https://economictimes.indiatimes.com/news/company/corporate-trends/large-deals-push-private-equity-venture-capital-investment-up-35-to-35-1-billion-in-2018/articleshow/67526201.cms | Empower Your Corporate Journey with Strategic Skill Courses Offering College Course Website Northwestern University Kellogg Marketing Leadership Development Program Visit IIM Kozhikode IIMK Chief Product Officer Programme Visit Indian School of Business ISB Venture Capital and Private Equity Program Visit
Mumbai: Private equity (PE) and venture capital (VC) investments in the country grew 35 per cent to USD 35.1 billion in 2018 compared with USD 26.1 billion in 2017, according to a report.The increase in investments were driven by significant growth in large deals.PE/VC exits recorded USD 26 billion in value, almost equal to the value of exits in the previous three years combined."2018 has been the best year for PE/VC investments and exits. As forecasted by us in the beginning of the year, both PE/VC investments as well as exits have touched a new record high in 2018," EY's partner and national leader (private equity services), Vivek Soni, said in a report.Though volatility in broader markets dampened pipe investments in the second half of 2018, this was more than adequately compensated by an uptick in buyout and start-up activity, he said.During 2018, 12 deals of value USD 500 million or greater, including eight USD 1 billion plus deals.In the year, deal volume increased by 28 per cent to 761 deals compared to 594 deals in 2017."The growth was led by strong pickup in buyouts and startup investments," the study said.The year recorded a strong uptick in startup investments on the back of some mega deals that saw large venture capital investors like Softbank, Tencent and Naspers deploy significant amounts of capital.There were 76 deals of value greater than USD 100 million in 2018, aggregating to USD 25.9 billion and accounting for 74 per cent of total PE/VC investments made in 2018 compared to 54 deals, aggregating USD 18.7 billion, of value greater than USD 100 million in 2017.The largest deal during the year saw GIC, KKR, PremjiInvest and OMERS invest USD 1.7 billion in HDFC Limited for a 3 per cent stake.In 2018, PE/VC exits, at USD 26 billion, increased by almost 100 per cent compared to 2017 and are almost equal to the value of exits in the previous three years combined, the report showed.The sharp rise was mainly on account of a single large deal that saw Walmart acquire controlling stake in Flipkart for USD 16 billion from a clutch of investors including Softbank, Tiger Global and others.This is the largest deal in the Indian PE/VC market ever, it said.From a sector perspective, e-commerce (USD 16.4 billion across 10 exits), technology (USD 1.8 billion across 24 exits), financial services (USD 1.5 billion across 34 exits) were the top sectors for PE/VC exits in 2018.The year 2018 saw USD 8.1 billion being raised across 51 fund raises by PE/VC funds, a 40 per cent increase over 2017 and the highest ever, the report said. | private equity (PE) and venture capital (VC) investments in the country grew 35 per cent to USD 35.1 billion in 2018. the growth was driven by significant growth in large deals. PE/VC exits recorded USD 26 billion in value, almost equal to exits in previous three years combined. in 2018, 12 deals of value USD 500 million or greater, including eight USD 1 billion plus deals. | Positive |
https://www.financialexpress.com/auto/car-news/hyundai-banks-big-with-click-to-buy-1-5-great-news-for-buyers-but-trouble-for-e-commerce-platforms-online-car-sales-booking-test-drive-covid-19-coronavirus-pandemic/1979861/ | Hyundai India claims that it has received the highest number of online bookings among SUVs with the new Creta SUV being the most popular model. Hyundai also sees growth in online bookings and online purchases of big-ticket products including cars to grow. But with OEMs developing their own online platforms, how would it affect third party e-commerce car sellers in India?
As India begins to reel back from the coronavirus pandemic, many carmakers are looking to offer the option for customers to stay on track of their new car buying plans. Hyundai had already introduced its online car purchasing platform called “Click to Buy” and has announced that it has enhanced the platform for a complete end to end solution for customers. Since the Click to Buy platform came to being, Hyundai says that it has received around 15,000 registrations till date with 5-10% of them being converted to sales, which is expected to grow further. On its new online platform, Hyundai says that SUVs are the most popular segment with the new Creta being most in demand. But Hyundai also reports that the interest for the new Verna has been increasing with regards to online enquiries.
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India is said to be one of the largest and fastest-growing markets for digital consumers around the world. Coupled with the apprehension of venturing out in the post-COVID-19 era, online sale are only expected to grow even more. The average time spent on a smartphone by Indian consumers was 3.5 hours before the pandemic but has now grown to four hours in the post-COVID-19 era. In the present world, Hyundai says that 90% of its consumers are digitally influenced, and 70% would prefer to buy products online. Hyundai expects at least 50% of car enquiries to be digital in the future.
This is the reason why Hyundai has decided to upgrade its Click to Buy platform and introduced Click to Buy 1.5 with new enhanced features. The Click to Buy 1.5 portal aims to deliver an end-to-end car buying solution. With Click to Buy 1.5, Hyundai has introduced the option for consumers to be able to check the availability of the dealer inventory for their choice of vehicle and variants, add accessories, warranty and service information, promotional offers, the ability to negotiate with dealers online for discounts, offers and digitisation of online application of loans with digital disbursal of the loan amount. With the new additions, Hyundai feels that some customers will also wish a more personal input, at which point the video conferencing with a sales executive from the dealership will be offered to clear all queries.
Hyundai says that price is a key factor among Indian customers who expect offline offers at dealerships to be offered online as well, in addition to special benefits of online bookings. Therefore, during the process when the dealer representative is assigned to the customer, they can provide a personalised quotation, online car financing, online booking, exchange bonuses for existing vehicles, and full online payment with online loan disbursal as well. While the value of the vehicle being exchanged would require a personal inspection from the end of the dealer, Hyundai is working towards ironing out issues and will constantly update the platform moving forward.
Future of online third-party wheeler-dealers
As most Indian automakers around are introducing their own online car buying platforms, these seem to be solutions which will be used even after the coronavirus pandemic is officially over. This, in particular, could spell trouble for e-commerce wheeler-dealers.
Over the last decade, many third-party online vehicle buying or e-commerce platforms began to crop up. These platforms are designed for online dealing with new and used cars and bikes. Some of these platforms offered more or less end-to-end solutions as well.
But as mainstream carmakers begin to develop their own platforms to sell new cars directly to consumers, it could spell trouble for the third-party solution providers. Carmakers will be able to offer certain benefits that third party platforms may not be able to offer. These include features like online negotiations with dealers, video conferencing and product demonstrations from sales representatives, special offers, accessories, dealer inventory checks and more. In addition, customers will be able to purchase their vehicles without being charged a commission for the service, nor would dealers be subject to the same. Even the evaluation of used car price while exchanging your old car is free in the case of Hyundai. | Hyundai says it has received the highest number of online bookings among SUVs. the new creta is the most popular model with 5-10% of registrations converted to sales. Hyundai expects at least 50% of car enquiries to be digital in the future. click to buy 1.5 is a complete end-to-end car buying solution for customers. click to buy 1.5 is available for free on the Hyundai website. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/banks-industrials-to-drive-next-surge-miraes-chadha/articleshow/79416404.cms |
Mumbai: Cyclical sectors in India such as banks and industrials will take the market higher over the next few months as sectors and stocks which have led the rally so far take a breather, said Rahul Chadha , chief investment officer at Mirae Asset Global Investments which has $162 billion in assets under management globally.“As we get clarity on vaccine or clarity on a definite time frame for this virus to end or mitigate in terms of its negative impact, we are seeing Covid losers or the good companies in other sectors — cyclicals, etc, now bounce back very quickly,” said Hong Kong-based Chadha in an interview with ET.“You will see a rotation from names which have done well and IT which has done well will take a breather for probably the next three or six months. Reliance which has done well will take a breather for three or six months. The Covid losers, which are industrials and cyclicals or the banks in India which are still below their February levels would take this market up,” said Chadha.Indian markets have rallied more than 70% from their March lows. Reliance Industries has been the biggest contributor to the market rally followed by Infosys , HDFC Bank, TCS and Kotak Mahindra Bank.While some banks have rallied sharply, overall, the sector underperformed during the market rally since March. However, the better-than-expected September quarter earnings coupled with attractive valuations have made investors stock up on banking stocks.“That is the most attractive sector for us from a six to nine months perspective. We have been positively surprised by the results in the September quarter whereas these companies have given a positive surprise on lower than expected delinquencies etc.,” he said.Chadha, who has been with Mirae Asset Global since 2006, said that within emerging markets the bias is in favour of South Korea and India as they have been negatively impacted by the coronavirus pandemic.“India would be our biggest overweight. Within the region, the two markets which we like are South Korea and India in terms of our overweight,” said Chadha. “Both these markets have reasonable upside on valuations and the growth recovery,” said Chadha. He believes there will be more fiscal support from governments in the Eurozone and the US going ahead.With eyes on economic recovery bets, Chadha is also bullish on the real estate sector that currently has the backing of some positive factors such as better affordability, and low interest rates.“Our channel checks with people on the ground have also indicated a sizable interest in buying a new house etc. The sector is under-represented in benchmarks,” said Chadha. “There is a solid backdrop for the sector to grow from here. As the economy recovers, this is a good reflation proxy,” he said. | cyclical sectors in india such as banks and industrials will take the market higher. 'you will see a rotation from names which have done well and IT which has done well will take a breather for probably the next three or six months' 'the Covid losers, which are industrials and cyclicals or the banks in India which are still below their February levels would take this market up' | Positive |
https://www.financialexpress.com/industry/reliance-industries-rights-issue-gets-moodys-thumbs-up-credit-positive-will-help-mukesh-ambani-cut-debt/1947959/ | Moody’s Investors Service on Monday said Reliance Industries’ Rs 53,100 crore rights issue is credit positive as earnings will decline because of economic shutdowns. Last week, Reliance announced it will raise Rs 53,100 crore through a rights equity offering. Also, the company announced an investment of Rs 5,656 crore by Silver Late in Jio Platforms, the digital services business of RIL.
“This is in line with the company’s target to reduce its net debt to zero by March 31, 2021. The proceeds from the rights issue will reduce RIL’s net debt by about USD 7.8 billion and is credit positive,” Moody’s said in a note.
Along with the previously announced asset sales to Facebook, Inc and BP Plc, RIL expects to generate net proceeds of Rs 1.1 lakh crore, which will reduce its net debt by the same amount.
“The total net debt reduction from completion of these transactions will lower RIL’s reported net debt, which was Rs 1.6 lakh crore (USD 21.4 billion) as on March 31, 2020, by about 68 per cent and will be equivalent to 1.1x its reported EBITDA of Rs 1 lakh crore for the fiscal year ended March 31, 2020,” it said.
In addition, RIL also announced that it has started the process to carve out its oil-to-chemical (O2C) business as a separate subsidiary in order to facilitate the previously announced 20 per cent stake sale in that business to Saudi Arabian Oil Company (Saudi Aramco).
Despite the coronavirus outbreak and lower oil prices, RIL confirmed that the due diligence process for the transaction is ongoing. “This increases the likelihood of the transaction going ahead as announced in August 2019,” the rating agency said, adding the transaction with Saudi Aramco values the O2C business at USD 75 billion and can potentially result in USD 12-15 billion of cash proceeds for RIL, depending on the amount of debt at the O2C business after the reorganization.
Reliance last week approved the biggest-ever rights issue of Rs 53,100 crore at Rs 1,257 per share. The company had reported a 10.5 per cent increase in its reported EBITDA for the fiscal year ended March 31, 2020, as compared to a year ago.
While the economic shutdowns due to coronavirus outbreak resulted in a decline in earnings from RIL’s O2C and retail businesses for the quarter ended March 2020, its earnings from its digital services continued to grow.
“We expect the earnings from its O2C and retail business to see a steeper decline in the quarter ending June 2020 as India’s economy is scheduled to be under shutdown for at least 45 days in this quarter. An earnings recovery for these segments will depend on the timing of resumption of economic activity, which remains uncertain at this stage,” it said.
Assuming the economic activity to resume by middle to end of May 2020, the rating agency expected RIL’s consolidated EBITDA to decline 10-12 per cent in FY2021 as compared to FY2020. However, the EBITDA is expected to return to FY2020 levels in FY2022 as improved demand in combination with low oil prices will result in higher earnings for the O2C segment, while the earnings growth for retail will resume.
“RIL’s recent foray into online retail through its partnership with Whatsapp and Facebook could result in a further boost in its retail earnings, which is currently not factored in our projections,” Moody’s said. | moody's said the rights issue is credit positive as earnings will decline. the company announced it will raise Rs 53,100 crore through a rights equity offering. also announced an investment of Rs 5,656 crore by silver late in Jio Platforms. proceeds from the rights issue will reduce RIL’s net debt by about USD 7.8 billion. the company also announced that it has started the process to carve out its oil-to-chemical (O2C) business as a separate subsidiary. | Positive |
https://www.moneycontrol.com/news/business/ipo/varroc-engineering-shares-list-with-5-permium-at-rs-1015-2676681.html | live bse live
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Auto component maker Varroc Engineering started off trade at Rs 1015 on the first day Friday. The stock price gained 5 percent against the issue price of Rs 967.
At 10:03 hours IST, it was trading at Rs 1012.95, up 4.75 percent on the NSE.
On BSE, the stock opened at Rs 1,032 on first day of trade.
The Rs 1,955-crore initial public offering was oversubscribed 3.59 times during June 26-28, driven by strong interest from institutional investors.
The price band for the issue, which consisted of an offer-for-sale of 2,02,21,730 equity shares by promoter Tarang Jain and existing investors which are Tata Group companies - Tata Capital Financial Services and Omega TC Holdings, was Rs 965-967 per share.
Founded in 1990 in Aurangabad (Maharashtra), Varroc Engineering is an automotive component manufacturer and supplier of exterior lighting systems, power-trains, electrical and electronics, body and chassis parts to passenger cars and motorcycle segments worldwide.
It supplies auto parts to Jaguar Land Rover, Bentley, Audi and Harley Davidson. Besides, it supplies auto parts to giants such as Volkswagen, Ford, Honda and Bajaj Auto.
Kotak Mahindra Capital, Citigroup Global Markets India, Credit Suisse Securities India and IIFL Holdings were the book running lead managers to the issue. | the stock price gained 5 percent against the issue price of Rs 967. at 10:03 hours IST, it was trading at Rs 1012.95, up 4.75 percent on the NSE. the initial public offering was oversubscribed 3.59 times during June 26-28. the price band for the issue was Rs 965-967 per share. besides, it supplies auto parts to giants such as Volkswagen, Ford, Honda and Bajaj Auto. | Positive |
https://www.financialexpress.com/brandwagon/lt-foods-owner-of-daawat-basmati-to-spent-rs-45-crore-in-operation-and-marketing/1838901/ | Daawat Basmati Rice’s parent company LT Foods which has entered into the premium healthy segment with the launch of rice-based snack Kari Kari plans to invest Rs 45 crore over the next few years to expand business besides marketing. “This year we will spend anywhere between Rs 3 crore – Rs 4 crore in marketing which will primarily be about creating better samples to catch consumer’s attention. The aim is to drive sampling of the product at retail stores, airlines, multiplexes, corporates, and colleges, among others,” Ritesh Arora, head- India, Far East and new business, LT Foods, said. Currently, the company claims to be using online including social media platforms in addition to e-commerce sites, to spread awareness of the brand.
LT Foods Ltd has rolled out the snack in a joint venture with Japanese rice crackers company Kameda Seika. Overall, the company plans to invest Rs 70 crore, in the JV and of this Rs 25 crore has been utilised for setting up manufacturing facilities in Sonipat, Haryana. “Based on changing consumer needs and preferences, and the increase in demand for healthy snacks, we ventured into the premium snacks category in India. Thanks to millennials’ need to try new products, this premium snacks category is recording a growth rate of 20%-25% per annum,” Vijay Kumar Arora, chairman and MD, LT Foods Ltd, said.
Read Also: Dentsu India launches ‘Behtar Parvarish Ka Pata’ campaign for Ashiana Housing
According to Ritesh Arora, the company will use TV to advertise and create a buzz about the product at a later stage. Calling it the second phase of marketing he stated that the firm intends to invest Rs 15 – Rs 20 crore in TV advertising. “From the third year of operations, we plan to go on TV via ads because by then we would have established awareness and our marketing will be more about reach. As our target group (TG) is a health-conscious millennial who is receptive to new products, we will primarily release ads on English channels,” he noted.
As per industry estimates, the Indian snacks industry is valued at Rs 30,000 crores, of this premium and healthy snacks market is estimated to be worth at Rs 1,000 crore, growing at a rate of 22%-25% annually. The company aims to grab 3%-5% share of the premium healthy snack market in the next three years.
Daawat-Kameda India aims to clock revenue worth Rs 10 crore from the sale of Kari Kari snack by the end of FY21. The company is looking to generate revenue worth Rs 130 crore in five years, on the back of a profit margin of 35%. Moreover, Kari Kari snacks will be exported to the Middle East, Bangladesh, Nepal and Sri Lanka. These markets are expected to contribute 15% of the overall sales of the company. Available in four different flavours, Chilli Garlic, Wasabi, Salt and Pepper and Spice Mania, Kari Kari is priced at Rs 50 for 60 grams and Rs 99 for 135 grams pack. The company plans to have a presence at 20,000 retail outlets and 35,000 outlets by 2024.
As for the parent firm, LT Foods, it expects to clock Rs 4,100 crore in revenue by the end of FY20.
Read Also: Google.org donates $1 million to Internews to fight fake news in India | LT Foods has entered into the premium healthy segment with the launch of the snack. the company plans to invest Rs 45 crore over the next few years to expand business. the company plans to spend between Rs 3 crore – Rs 4 crore in marketing. the aim is to drive sampling of the product at retail stores, airlines, multiplexes, corporates, and colleges, among others. | Positive |
https://economictimes.indiatimes.com/tech/startups/the-rising-demand-for-buying-homes-among-indian-millennials/articleshow/78864155.cms | Elevate Your Tech Prowess with High-Value Skill Courses Offering College Course Website IIT Delhi IITD Certificate Programme in Data Science & Machine Learning Visit MIT MIT Technology Leadership and Innovation Visit Indian School of Business ISB Product Management Visit
Demand for buying homes among Indian millennials has increased compared with pre-pandemic levels, as mortgage rates hit a multi-decade low, and more of them expect to work-from-home regularly or permanently in the future, according to executives from leading real estate companies.This demand is in part being driven by millennials expecting lesser mobility in the future as work-from-home culture takes hold, along with a growing sentiment shift towards savings and asset creation post-pandemic, they said.“The 25-40 age bracket who until now did not give much priority to buying a home as it gave them the flexibility to switch jobs and hop cities, is now more than ever serious about owning a physical asset. The pandemic has brought everyone closer to realising the importance of having a home,” said Saurabh Garg, a cofounder of real estate platform NoBroker .com.A spate of reforms had made the real estate sector unviable for investment for many, and renting made more sense in the last few years, Motilal Oswal Real Estate chief executive Sharad Mittal said. This is now seeing a reversal — with mortgage rates being at a multi-decadal low of sub-7% and demand being more widespread, owning a home has become more attractive for millennials, he added.“The pandemic has created a higher need for stability and security that comes from staying in an owned home vs a rented one,” Mittal said.Additionally, millennials have breached the 1 lakh per month salary mark that has spurred the demand, Azlo Realty CEO Krish Raveshia said.“Partly driven by lifestyle aspirations as well as affordability, millennials are likely to take up investments in the range of Rs 30 lakh to Rs 70 lakh. Some more successful millennials may even look at pre-leased assets or under-construction properties available on offer with financing schemes,” Raveshia said.Pre-Covid, the millennial generation constituted about 49% of the buyers on NoBroker. The number has now jumped to 63%. Millennials in Mumbai and Hyderabad lead the pack with overall demand growth of 74% and 72%, respectively, compared to less than 50% increase in demand from other segments.Millennials are looking to move into suburban areas where things are more affordable and spacious, as the need for having a separate workspace mount in a work from home economy. They are showing interest to buy a 3BHK unit, the cost of which is comparable to 1 or 2 BHK in neighbourhoods surrounding IT hubs, according to data provided by NoBroker.com.“The projects towards these localities are more affordable and more spacious. They also offer a better quality of life as they are not very crowded, and surroundings are peaceful,” Garg said. | millennials expect lesser mobility in the future as work-from-home culture takes hold. millennials have breached the 1 lakh per month salary mark that has spurred the demand. millennials are also likely to take up investments in the range of Rs 30 lakh to Rs 70 lakh. millennials are also more likely to look at pre-leased assets or under-construction properties. | Positive |
https://www.moneycontrol.com/news/business/markets/opportune-moment-for-the-jio-facebook-deal-fair-value-of-ril-stock-at-rs-1800-experts-5176311.html | live bse live
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Facebook Inc to be buying 9.99 percent stake in Jio Platforms is a win-win game for Reliance Industries, especially at a time when the global economy is facing a hard time due to lockdown forced by novel coronavirus or COVID-19, experts feel.
Reliance Industries, Jio Platforms and Facebook Inc on April 22 announced the signing of binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms.
"This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar). Facebook’s investment will translate into a 9.99 percent equity stake in Jio Platforms on a fully diluted basis," said Reliance Industries in its BSE filing.
Sanjiv Bhasin of IIFL, who is extremely bullish on digitalisation, said Rs 1,800 is the fair value for Reliance Industries given the Facebook deal and robust Reliance Jio business model.
"I am extremely positive on Reliance Industries. In such kind of crisis, the deal shows that money never be a problem. I think it is the biggest deal in technology business. Corporates know the value of digital media business in current COVID-19 led crisis and India is the big place for such business," he told Moneycontrol.
There would definitely be rerating of the stock, though Saudi Aramco deal may get delayed due to current sharp fall in oil prices, he said.
Reliance Industries share price jumped 11 percent intraday after the deal announcement.
"The rally in share price of Reliance is clearly indicating that markets have given a thumbs up to this business decision, as it paves the eventual listing of Jio which is in the process to transform itself into a digital services company," Aamar Deo Singh said.
On the other hand, Facebook would also gain as it gives it access to huge digital business opportunities in India, he added.
Facebook deal is part of a plan to deleverage balance sheet by Reliance Industries, experts feel.
CMD, Mukesh Ambani in the last AGM said Reliance had a very clear roadmap to becoming a zero net debt company within the next 18 months.
Opportune Time for Deal
Experts feel the deal has come at an opportune time when the people or corporates really feel the need for digitalisation as the economy is stalled due to COVID-19.
"With the current global scenario, it opens up huge business opportunities for both of the giants. It couldn't have come at a more opportune time. And with India slated to have 900 million internet users in a few years, as per a CISCO report, limitless potential opens up," Aamar Deo Singh said.
Sanjiv Bhasin also feels considering the current telecom and digital environment, data is the biggest essential commodity for people. As a result, the average revenue per user will increase for Reliance Jio and Bharti Airtel and both will increase tariffs going ahead, he said.
"Jio is firing on all guns. If we see the Netflix data which said viewers increased to 15 million against their expectations of 8 million, the data is going to be a key factor for telecom companies and digitalisation is a big game," he added.
Shailendra Kumar, CIO at Narnolia Financial Services also feels as the economy is in jolt, Jio is doing good and there is no dent in telecom business, it is a growing business.
RIL brought telecom business in a big way as it captured 34-35 percent market share in few years and has been trying to reach the market share to 44 percent by FY22, he said.
Shailendra feels RIL will increase market share to 40 percent by FY22, followed by Bharti Airtel with 32 percent share, BSNL 10 percent and rest with Vodafone Idea. "It has some room to gain market share. RIL and Bharti Airtel will see their average revenue per user rising."
Sumit Bilgaiyan, Founder of Equity99 also said by this partnership company can drive improved market share gain for Jio compared to peers.
"This opportunity is to monetize customers through non-telco revenue stream. There should be strong synergy benefits for RIL's Jio business and Facebook. Deal will allay investor worries on Reliance large debt," he added.
Saudi Aramco Deal
Shailendra Kumar believes Saudi Aramco would change the valuation of RIL if it is done in coming quarters.
Aramco deal in oil & gas is still yet to come in which Petrochemicals and refining business is taking major role.
"The Aramco deal is supposed to be near to Rs 1.1 lakh crore for around 25 percent stake. If this happens then it would be as per the statement given by Mukesh Ambani and management in last AGM about making the company debt free," Sumit Bilgaiyan said.
RIL at this position is top in many sectors like Telecom, Media, Retail, so the market cap is likely to go 2-3 times from now in coming 18-24 months, he added.
Narnolia has not changed the target of Rs 1,470 in terms of earnings as the deal will not make material difference to numbers on the immediate part but will help in the longer run.
Reliance Industries said Reliance Jio Infocomm, which provides connectivity platform to over 388 million subscribers, would continue to be a wholly-owned subsidiary of Jio Platforms.
Catch our entire coverage on the Facebook-Jio Deal here.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.
The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | facebook to buy 9.99 percent stake in jio platform is a win-win game for reliance. the deal is part of a plan to deleverage balance sheet by reliance, experts feel. jio platforms is a digital services company. a jio platform is a mobile app that lets users share content with others. | Positive |
http://www.livemint.com/Industry/gTBLY70SMI0CCIQRBxHt4K/Govt-explores-cheap-power-sales-to-neighbouring-countries.html | New Delhi: India is exploring selling “cheap power" to its South Asian neighbours and Myanmar on a long-term basis and wants state utility NTPC to expand overseas, its power minister said on Tuesday.
Indian companies such as Reliance Power Ltd and Adani Power Ltd have already signed agreements to supply power to Bangladesh, where New Delhi is fighting for influence with China. India also sells some electricity to Nepal and Myanmar, but power minister R.K. Singh said it could sell more.
“Neighbouring countries like Sri Lanka, Myanmar, Nepal and Bangladesh are viable markets ... where the per-unit cost of electricity is very high," Singh said in a statement released by the power ministry.
“There is huge opportunity to export cheap power to neighbouring countries which will be beneficial for the entire region," he said.
The ministry would look at sending teams to those countries to assess demand for power imports, he said.
Singh urged India’s top utility NTPC to set up power plants in other countries and “become the world’s largest power producer", but did not say where it should expand.
India became a net exporter of electricity in 2016, although it also imports from neighbouring Bhutan.
Singh, however, said its power surplus would start to decline once all households are connected. Currently around 300 million of India’s 1.3 billion people are without electricity.
“If you look at the entire power sector, the demand has been suppressed because not everyone is connected," Singh said. “We have just started taking off and are going to enter double digit growth. What we see as excess capacity today may not turn out to be enough if we unlock that demand."
Many Indian power companies have struggled to repay loans in the past three years after expanding aggressively at the beginning of this decade, as a combination of tepid demand and uneven coal supplies hit their operations. Reuters
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Topics | india is exploring selling "cheap power" to its neighbours and Myanmar. companies such as Reliance Power and Adani Power have already signed agreements to supply power to Bangladesh. power minister R.K. Singh said there is huge opportunity to export cheap power to neighbouring countries. he urged NTPC to set up power plants in other countries. | Positive |
https://www.moneycontrol.com/news/business/markets/budget-2020-run-up-more-than-25-stocks-that-are-on-brokerages-buying-list-4859561.html | live bse live
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The Indian market witnessed a sharp surge in January ahead of the big event - Budget 2020 - pushing the S&P BSE Sensex beyond 42,000, and Nifty50 above 12,400 levels.
The expectations, which are powering the rally, are that Budget 2020 will be tilted towards stimulating growth. The measures expected to be rolled out include cut in personal taxes, and a possible cut in long term capital gains tax (LTCG).
The expectation is running high from the upcoming Union Budget to provide stimulus to revive the economy, and lay down the path for India to achieve $5-trillion GDP by 2024.
Most economists and analysts see the government missing out on the fiscal deficit target by at least 50 bps but that is mostly factored in by markets, but anything more than that could be fatal for the sentiment on the Street.
“A 50-60 bps slippage in the fiscal deficit target for FY20 is now the consensus. We believe markets are already building in the same. But anything beyond that is not a great outcome. We believe the market is focussing more on FY21,” Ritu Arora – CEO & CIO, Allianz Investment Management Singapore Pte Ltd told Moneycontrol.
“We hope to see FDI norms being relaxed meaningfully in sectors such as insurance. This will bring in large pools of capital to India as well as help in further developing and deepening the financial sector, which is essential for India to reach its 5 trillion dollar goal by 2025,” she said.
In Union Budget 2020-21, most analysts on D-Street expect the government to continue with its policy push to revive economic growth and demand by focusing on boosting disposable income and that is one of the prime reasons why we are seeing a rally in the small & midcap stocks.
In terms of sectors, the usual beneficiaries include infrastructure, agriculture, rural economy, automobiles, Make-in-India thrust, more on ease of doing business, employment generation thrust could gain focus from the Budget, suggest experts.
Other sectors could be defence, banking, auto, infrastructure and consumption which will be the key sectors to watch out for in Budget 2020.
“Given the expectations that the government would take measures to ease the demand-side concerns, we expect consumption both staple (FMCG) and discretionary (consumer durable goods, automobile, etc.) to hog the limelight for the upcoming Budget 2020,” Pankaj Bobade, Fundamental Research Head, Axis Securities Ltd told Moneycontrol.
“Infrastructure creation is expected to be another focus for the government given the need for better infrastructure; hence, infrastructure plays viz., capital goods, cement, metals, pipes and infrastructure companies viz., EPC players, road construction companies etc would also enjoy demand in the near term,” he said.
Investment in railway infrastructure, mass rapid transport is also going to be keenly watched out for in the upcoming budget.
We have collated a list of companies from different brokerage firms that are expected to benefit from Budget proposals:
Sharekhan picked 12 companies, which it thinks will be in focus in the run-up to the Union Budget and have the potential to give good returns in the long term.
Antique Stock Broking:
We expect increased allocation to various rural-centric schemes, along with strong Rabi season may help revive rural demand.
These measures if announced may accelerate earnings largely led by higher volume growth for all consumption linked stocks. Likely key beneficiaries are in Auto (M&M, TVS Motors, Bajaj Auto), consumer durable/electrical (Crompton Consumer, Voltas), Paints and other household linked stocks (Asian Paints), Consumer staples (HUL, Colgate, Dabur) and retail (Avenue Supermarket).
We have projected a 10% growth in FY21 capital expenditure including expenditure over road, highway and railways (in line with our estimate of 10% FY21 nominal GDP) because of the ongoing fiscal constraint.
Likely key beneficiaries are L&T, NTPC, UltraTech Cement, Adani Ports, Siemens, ConCor, Bharat Electronics, Honeywell Automation, Gujarat Gas, Solar Ind., KEC, Timken, APL Apollo, Birla Corp, BEML and KNR Construction.
Angel Broking
In the backdrop of the current slowdown we believe that fiscal slippage is necessary and will go a long way in boosting growth given that India doesn't have a twin balance sheet problem like 2013, said the brokerage firm.
Expert: Umesh Mehta, Head of Research, Samco Securities Ltd.
Investors can look at high dividend-yielding stocks such as ONGC, Hindustan Zinc, Vedanta which might pick up the pace if there is some relief on the personal tax front.
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | the Indian market witnessed a sharp surge in January ahead of the big event - Budget 2020. the expectations are that the government will focus on stimulating growth. the measures expected to be rolled out include cut in personal taxes. the expectation is running high from the upcoming Union Budget to provide stimulus to revive the economy. the government is expected to focus on boosting disposable income. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/the-week-that-was-in-10-stocks-these-scrips-rallied-up-to-78-telcos-rang-louder/articleshow/72205507.cms | Benchmark equity indices settled the week flat on US-China trade concerns, premium valuations and lack of fresh triggers after the Q2 results season. The 30-share BSE Sensex added just 2.71 points to end at 40,359 for the week ended November 22. The 50-share Nifty gained 19 points to 11,914.Here are the top stocks and sectors that created all the buzz during the week gone by.As many as 22 stocks in the BSE500 index delivered over 10 per cent returns to investors during the week. They included Vodafone Idea (up 78 per cent), UCO Bank (43 per cent), Tejas Networks (38 per cent), Corporation Bank (27 per cent) and Zee Entertainment (24 per cent). Aditya Birla Capital, ITD Cementation, DishTV, IRB Infra, eClerx Services and Coffee Day Enterprises advanced between 15 and 25 per cent.As many as eight stocks on the BSE500 plunged in double digits. Gayatri Projects lost 36 per cent, followed by Reliance Capital (23 per cent), Reliance Infra (22 per cent), Indiabulls Integrated Services (18 per cent) and Time Technoplast (15 per cent). Caplin Point, Reliance Power and Jain Irrigation were among other stocks that fell over 10 per cent.Kerala-based CSB Bank’s IPO got fully subscribed on the first day of bidding on Friday. The initial public offering (IPO) received bids for 1,20,87,450 shares against the total issue size of 1,15,54,987 shares, reflecting 1.05 times subscription, according to data available with the National Stock Exchange. The quota reserved for non-institutional investors was subscribed 10 per cent, while that for retail investors was subscribed 5.60 times.In another development from the IPO-mart, realty firm Puranik Builders has filed fresh papers with markets regulator Sebi to raise an estimated Rs 1,000 crore through its initial share-sale.With a 7.85 per cent rally, the BSE Telecom index emerged the biggest gainer on the exchange. It was followed by Healthcare (up 3.06 per cent), Power (up 0.97 per cent), Metal (up 0.82 per cent) and Bankex (up 0.16 per cent). On the other hand, IT, Consumer Durables and Auto declined up to 2.50 per cent. Vinod Nair, Head of Research Geojit Financial Services, said: “Buoyancy in the telecom sector was largely due to likelihood of hike in tariff and deferment of spectrum dues is likely to improve cash flow of these companies in the near term. On the other hand, fresh concerns over stringent norms for US H1b visa dragged IT heavyweights.”Share of Zee climbed 24 per cent to Rs 357.90 on November 22 from RS 287.50 on November 15. Several foreign funds, including the New York-based BlackRock, Singapore government-backed GIC, HSBC Global, Citigroup, Morgan Stanley Asia, Vanguard and Wellington Management, have picked up stakes in Zee Entertainment Enterprises as the promoters sold stock to repay loans. Zee also remained as top gainer in the Nifty pack for week ended September 22.Emkay Global Financial Services has ‘Hold’ rating on Zee with a target price of Rs 389. On the positive side, the brokerage house believes that the deal removes the pledge overhang while also ensuring the continuation of the current management team. However, on the other side it added that net cash in the balance sheet fell to Rs 1,480 crore in Q2FY20 from Rs 3,240 crore in Q4FY18.With a gain of nearly 9 per cent, Sun Pharma emerged second biggest gainer in the Nifty pack for the week. Bharti Airtel (up 7 per cent), Eicher Motors (up 6.82 per cent) and IndusInd Bank (up 6 per cent) were among other major gainers in the 50-share pack. On the other hand, Mahindra & Mahindra, YES Bank, Britannia Industries, TCS, Asian Paints and Hero MotoCorp declined between 4-6 per cent during the week.In the BSE500 index, Polycab India, Adani Green Energy, Persistent Systems, Reliance Nippon Life Asset Management and HDFC Asset Management were among 40 firms that hit new 52-week highs. On the other hand, Time Technoplast, Sobha, Gayatri Projects, Blue Dart, Omaxe and Caplin Point hit new 52-week lows.Rana Kapoor sold remaining 0.8 per cent stake in YES Bank during the week, keeping a token 900 shares he once famously said were his “diamonds”. The scrip fell 5.68 per cent to Rs 64.80 during the week.The market valuation of Reliance Industries, the country's most valued firm, is fast nearing the Rs 10 lakh crore mark helped by the continuous rise in its share price. Billionaire Mukesh Ambani's Reliance Jio on Tuesday said it will increase mobile phone call and data charges in the next few weeks in compliance with rules, as it followed similar announcements by Bharti Airtel and Vodafone Idea on tariff hike. With a market value of Rs 9.80 lakh crore, share of the company signed off the week with gains of over 5 per cent at Rs 1,546. | the 30-share BSE Sensex added just 2.71 points to end at 40,359. the 50-share Nifty gained 19 points to 11,914. as many as 22 stocks delivered over 10% returns to investors. they included Vodafone Idea (up 78%), UCO Bank (43%), Tejas Networks (38%) and Tejas Entertainment (24%) | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/droom-earmarks-usd-100-mn-capex-for-tech-marketing/articleshow/74266551.cms | NEW DELHI: Online automobile marketplace Droom will pump in about USD 100 million (about Rs 718 crore) this year towards further strengthening its technology offerings, marketing and new initiatives, its founder and CEO Sandeep Aggarwal said.The company, which aims to touch USD 120 million (about Rs 862 crore) in net revenue by 2021, is also looking at expanding its international operations to six new markets including Indonesia, Vietnam and the UAE this year."We have earmarked a capex (capital expenditure) of about USD 100 million this year. Of this, about USD 50 million will be towards marketing and promotion, USD 30 million for headcount and technology and roughly USD 20 million for new initiatives," Aggarwal told PTI.He added that the company has been working on keeping its cash burn low and is hopeful of also hitting profits by the end of the year.Aggarwal said the company has already established presence in three international markets and is looking at growing that further this year.Droom is looking at Indonesia, Philippines and Vietnam in Southeast Asia and the UAE, Oman and Saudi Arabia in the Middle East."While we are aggressively expanding our international presence, we are also deepening our presence within the India market as we believe this will continue to be the mainstay of our business. Less than 10 per cent of our revenues will come from international operations," he said.The company also plans to raise about USD 150 million before it launches an initial public offering (IPO) in 2021.It has so far raised close to USD 125 million in six rounds of funding from investors like Lightbox, Beenext, Beenos, Digital Garage, Toyota Tsusho Corporation, and Integrated Assets Management.Droom had clocked a gross merchandise value of USD 1.2 billion on its platform with a net revenue of USD 32 million in 2019. Its platform processed over 6.1 lakh orders last year. | online automobile marketplace aims to reach USD 120 million in net revenue by 2021. about 50 million will be towards marketing and promotion, according to founder and CEO. about 30 million will be for headcount and technology, and roughly 20 million for new initiatives. company also looking at Indonesia, Philippines and Vietnam in Southeast Asia and the UAE. aims to raise about USD 150 million before it launches an initial public offering (IPO) in 2021. | Positive |
https://www.financialexpress.com/opinion/explained-why-indias-economy-needs-a-big-dose-of-creativity/1691800/ | India’s economy is growing steadily despite global headwinds and is set to recover from the current setbacks soon. But the country must not waste another crisis. India has an opportunity to innovate its way out of trouble and chart a faster course for growth. Innovation spawns strong cycles of investment and consumption, and gives new competitive advantages to an economy.
Next month’s National Management Convention, the All India Management Association’s annual event, aims to nudge India’s business and policy leadership towards innovation-led policies. Many government and business leaders will present their ideas on a range of innovation issues concerning economic reforms, infrastructure, investment, trade, technology, job creation, entrepreneurship, etc.
If India is to nearly double its economy over the next five years, fundamental policy and business innovations are needed. The recent stimulus has offered temporary relief, but to achieve lasting robustness the economy needs a big dose of creativity.
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Knowledge is replacing capital and labour as the key factor of production and competitiveness. The new economy is about value-creation and not value-extraction, and the future belongs to companies with intellectual assets. Today, the most powerful global companies are innovation warriors that have very low capital and labour intensity.
India has to accelerate its climb up the innovation ladder to ensure continuity of economic growth. The country ranks 57th among 126 nations surveyed for Global Innovation Index. That is both good and bad. Although India has done well for a low-middle income country, its ranking is not commensurate with the nation’s aspirations and growth needs. While it ranks number one on ICT services exports, sixth on engineering and science graduates, and 18th on global R&D companies, it ranks 80th on political and business institutions, 56th on human capital and research, 64th on innovation linkages and knowledge absorption, and 43rd on knowledge creation and diffusion. Clearly, it’s time for India to get its capabilities in line with its ambitions.
Intellectual property creation is basic to building an innovation economy. India is a laggard in patent applications—for every $100 billion of GDP, India has less than 200 patent applications compared to 6,000 in China. In 2017, according to UN’s WIPO report, India awarded 12,400 patents and 86% of those patent approvals were obtained by foreigners.
India could deepen its pool of foreign innovators by getting creative with its FDI practices. America’s tariffs and technology bans on China are forcing global companies to look for alternative bases in Asia, but India is not attracting many of them. We could learn from Vietnam, which is offering ready-to-move-in industrial sheds with allied utilities and logistics for quick transfer of production out of China. FDI works better when it is built around market linkages and not just on cost arbitrage.
The key to becoming an innovative nation is to reward disruptors and not the establishment. The US, Europe, Japan, Israel and now China have become innovation powerhouses because they favour value-creators over rent-seekers. The Silicon Valley has been a model innovation ecosystem because the start-ups can focus on creating new ways of producing and consuming things and get rich doing it.
Government spending on basic research is critical for developing an innovation ecosystem. Internet, GPS, digital assistant, touchscreen were all developed with American government’s funding. China has become a leader in 5G, electric vehicles and digital surveillance technologies because of direct government involvement. The government is best-placed to invest in experimental science and technologies because of its reliable tax revenues, whereas the private sector is best placed to build commercial applications on top of basic R&D because of its efficiency.
But it’s critical that a share of private profits from public investments are ploughed back into basic science and technology research. American tech giants are coming under pressure to pay more taxes and invest more in research institutions instead of using their huge surpluses for buying out other innovators and buying back shares. If the government has no incentive to fund or support invention and discovery, the private sector will be terribly short on innovation.
Regulations and incentives play a vital role in directing innovations. Each generation of automobiles are cleaner and safer because of regulatory pressure. Solar and wind energy industries owe their development to subsidies and tax breaks. India can transform its education, sanitation and healthcare sectors by loading incentives in favour of innovations and against inefficient technologies and operating models.
The size of R&D budgets matters, but innovation is usually not proportionate to the budget. Creativity does not come by kilos. Instead, it comes by flashes of brilliance triggered by right conditions. Among American tech giants, Apple spends a lot less of its revenues on R&D than Intel, Facebook or Alphabet. Of course, mass market players have to spread their bets wider than niche players. Typically, tech giants spend 15-20% of their revenues on R&D compared to typical industrial leaders’ spending of 4-6% of revenues on R&D. It is no surprise that tech companies are disrupting every industry.
Among emerging economies, China is a great example of rise to prosperity and power through innovation. India can learn from China’s deliberate increase in innovation-intensity of its economy. China is the only middle-income country among the 20 most innovative nations and its R&D spending and academic research are rising the fastest in the world. At the 2018 conference of the Association for the Advancement of Artificial Intelligence, 265 research papers of China were accepted compared to 16 from India.
India has a serious innovation deficit and it has to make up in a rush. Experimentation may involve risks, but there are enormous rewards for successful innovations. More than the fear of failure, the biggest obstacle to innovation is the idealisation of obedience and safety. Time has to come for India to think disruptively and take a moonshot approach to solving its big problems. | india's economy is growing steadily despite global headwinds. but the country must not waste another crisis. innovation spawns strong cycles of investment and consumption. it gives new competitive advantages to an economy. india ranks 57th among 126 nations surveyed for Global Innovation Index. but its ranking is not commensurate with the nation's aspirations and growth needs. | Positive |
https://economictimes.indiatimes.com/industry/banking/finance/banking/sbi-to-sell-up-to-49-in-i-banking-arm-sbi-caps/articleshow/64283656.cms | (This story originally appeared in on May 23, 2018)
MUMBAI: State Bank of India is selling a stake of up to 49% in its investment banking subsidiary SBI Capital Markets SBI Caps ) and is looking for a joint venture partner. The stake sale is part of a Rs 20,000-crore capital-raising exercise by the lender for FY19 to fund growth.SBI chairman Rajnish Kumar said, “This year, we will be looking at bringing in a partner for SBI Caps. We will be shedding 24-49% stake.” He added that the bank is also looking to sell 3-5% in SBI General Insurance in FY18, and selling a stake in SBI Card in FY20.SBI is in the process of merging the project advisory businesses of SBI Caps with the bank. According to Kumar, there was a bit of duplication with SBI’s own advisory business and, hence, the decision to merge the two. “We are looking at SBI Caps as a pure investment bank,” Kumar said.In FY18, SBI had got its subsidiary SBI Life listed through an offer for sale of its own shares. “All our subsidiaries have done exceedingly well. They hold large value, which is waiting to be unlocked. We have plans to unlock that potential in the current as well as in the next year,” Kumar said.SBI Caps had reported a net profit of Rs 327 crore for FY18, up 30% from Rs 252 crore in FY17. The investment bank has five wholly owned subsidiaries — SBICAP Securities, SBICAP Trustee Co, SBICAP (UK), SBICAP (Singapore), and SBICAP Ventures. SBI Caps is the largest domestic investment bank, offering all investment banking and corporate advisory services. These services include project advisory and loan syndication, structured debt placement, capital markets, mergers & acquisitions, private equity and stressed assets resolution. | the sale is part of a Rs 20,000-crore capital-raising exercise by the lender for FY19 to fund growth. bank is also looking to sell 3-5% in SBI General Insurance in FY18, and selling a stake in SBI Card in FY20. the investment bank has five wholly owned subsidiaries. SBI Caps reported a net profit of Rs 327 crore for FY18, up 30% from Rs 252 crore in FY17. | Positive |
https://economictimes.indiatimes.com/markets/stocks/recos/buy-ajanta-pharma-target-price-rs-1880-edelweiss/articleshow/75885489.cms | Creditors have withdrawn 26,518 insolvency cases involving defaults of as much as ₹9.33 lakh crore before their applications were admitted by the adjudicating authority since the Insolvency and Bankruptcy Code (IBC) came into force.
IndiGo may introduce a premium class of seats along with hot food and a loyalty programme by the end of 2024, as India’s largest airline looks to court more business flyers and rival Air India on international routes, said people with knowledge of the matter.
The initial public offering (IPO) market is in an unprecedented bull wave. Three of the four IPOs — Tata Technologies, Flair Writing Industries, and Gandhar Oil Refinery — which opened on Wednesday were fully subscribed within hours of opening.
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Top Trending Stocks: SBI Share Price | creditors have withdrawn 26,518 insolvency cases involving defaults of as much as 9.33 lakh crore. IndiGo may introduce a premium class of seats along with hot food and a loyalty programme by the end of 2024. the initial public offering (IPO) market is in an unprecedented bull wave. three of the four IPOs — Tata Technologies, Flair Writing Industries, and Gandhar Oil Refinery — which opened on Wednesday were fully subscribed within hours of opening | Positive |
https://www.moneycontrol.com/news/business/markets/gold-vs-bank-fd-heres-which-asset-class-delivered-higher-returns-over-long-term-6208041.html | Source: Reuters
Gold, as an asset class, has had one of its best years in recent memory. The yellow metal prices have risen over 20 percent year-to-date, though most gains came earlier in the year following the flash crash in equity markets brought about by the coronavirus outbreak.
Since their early rise, gold prices have mostly seen consolidation in the second half of the calendar year 2020, without giving away much of its gains. Consequently, the metal has performed much better than other asset classes, such as equity and oil. In 2020 so far, the Nifty is up 11 percent, while crude oil WTI Futures is deep into the negative territory at -24 percent.
In India, gold is not just a mode of investment, its accumulation is linked to social status and in some cultures, it is even considered as a bearer of good fortune. Hence, many Indians prefer buying physical gold in the form of jewellery, coins or bars compared to other modes of investments such as futures and exchange-traded funds. Also, it is not uncommon for families to accumulate gold and endow it to future generations.
Gold has been hovering around Rs 50,000 per 10 gram. A kilogram of gold would cost about Rs 50,00,000. This means if you have a kilo of gold, you could swap it for a top-of-the-line German luxury car such as a Mercedes E class or a BMW 5 series.
To get an idea of how gold has done over the years, we have compared yellow metal's price across decades, beginning 1980, to the 40-year average of bank Fixed Deposit Rates (1980-2020) i.e 8.43 percent, as shown by the Reserve bank of India (RBI).
RBI has provided an average of FD rates from different banks across 40 years, though individual banks pay different rates. For gold, we have taken the average cost of a kilo of the metal across different years, provided by Bank Bazaar.
We assume you had a kilo of gold in 1980. Had you sold it in 1980 itself, when the average price of 1kg gold was Rs 1,33,000, and reinvested the money in FDs, you would be sitting on Rs 33,87,115 today. This amounts to a compounded 2,446 percent return in 40 years.
In 1990, data shows that the average cost of 1 kilo of gold was Rs 3,20,000. If you would have sold the gold then and put in FDs, you would be sitting on Rs 36,27,719 today. A 1,033 percent return in 30 years!
Meanwhile, from 1980 to 1990, your investment in gold would have only returned 140 percent.
The average cost of 1 kilo of gold in 2000 was Rs 4,40,000. Your investment would have grown 405 percent to Rs 22,20,454 from 2000-2020 if invested in FDs. From 1980-2000, your gold investment would have grown 231 percent.
The average cost of gold in 2010 was Rs 18,50,000. If you would have sold 1 kilo of gold during that time and reinvested in bank FDs, you would be sitting on Rs 41,55,911. Between 1980-2010, your 1kg of gold would have returned 1291 percent.
Had you saved the gold all these years and sold it in 2020. You would have earned a 3,659 percent return on the yellow metal.
From our ballpark figures, it is fair to say that gold outshone bank FDs across 40 years, but it is also important to note that fixed deposits are considered to be the most secure investment option in India. Another thing that stood out is the power of compounding, as even the safest bet would have delivered a 2,400 percent return had it been given enough time. | gold prices have risen over 20 percent year-to-date. gold has performed much better than other asset classes, such as equity and oil. a kilogram of gold would cost about Rs 50,00,000. gold is a mode of investment. gold is not just a mode of investment, its accumulation is linked to social status. a kilogram of gold would cost about Rs 50,00,000. | Positive |
https://www.livemint.com/Technology/EXlKtDL4Vo2aqQr8lLIjkK/Adani-Elbit-Unamanned-Aerial-Vehicles-complex-inaugurated-in.html | Hyderabad: Adani Defence and Aerospace and the Israel-based Elbit Systems Ltd on Friday launched the Aldani Elbit Unamanned Aerial Vehicles complex at Hyderabad. The new joint venture is touted to be the first private UAV manufacturing facility in India and the first one outside Israel to manufacture the Hermes 900 medium altitude long endurance UAV.
The 50,000 square feet state-of-the-art facility will start operations with the manufacturing of complete carbon composite aero-structures for the Hermes 900 UAV, followed by the Hermes 450 UAV, catering to the global markets, and will further be ramped-up for the assembly and integration of complete UAVs here. As of now, after manufacturing, the integration of the UAV units will be done in Israel.
The new manufacturing space has been set up inside the Adani Aerospace park in Hyderabad, which comprises other infrastructure centres as well. “ What we can do here is to make India a lot more self-reliant as today we rely on Russia, the US and Israel (for defence requirements). Our chairman’s vision was never about factories, but about transforming the defence sector. The key premise of this venture was that we would start with the international market and later for India’s requirements," said Ashish Rajvanshi, chief operating officer, Adani Defence and Aerospace.
Interacting with reporters after the launch, Rajvanshi said that the about $15 million has been invested in the new facility, which is located at the Pahadi Shareef area, near the Rajiv Gandhi international airport in Hyderabad. “This is a 20 acre park, which is going to have a supporting ecosystem (for manufacturing)," he added.
Elad Aharonson, executive vice-president and general manager, Elbit Systems Ltd, said that the venture is waiting for the Indian government to give it an opportunity to manufacture UAVs for the defence sector in India. “We are waiting for it to give us the first opportunity, to be part of the selection process and we believe it will be very successful," he added.
Aharonson stated that his company sold products worth $3.6 billion and that the numbers are expected to touch $4 billion next year. “80% of it is from international markets and 20% in Israel. We work all over the globe in about 80 to 90 countries and have about 15,000 employees of which 11,000 are in Israel," he said.
The Aldani Elbit Unamanned Aerial Vehicles complex was inaugurated by Mohd. Mahmood Ali, home minister of Telangana, S. K. Sinha, chief secretary of Telangana, Pranav Adani, director, Adani Enterprise Limited, Karan Adani, CEO, Adani Ports and Special Economic zone, Bezhalel Machlis, president and CEO, Elbit Systems Ltd, Mr. Aharonson, Mr. Rajavanshi and others.
Addressing delegates at the inauguration, Ali said that the Telangana government will do everything it can to enhance India’s defensive capabilities.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | the joint venture is touted to be the first private UAV manufacturing facility in India. the 50,000 square feet state-of-the-art facility will start operations with the manufacturing of complete carbon composite aero-structures for the Hermes 900 medium altitude long endurance UAV. the integration of the UAV units will be done in Israel. the new manufacturing space has been set up inside the Adani Aerospace park in Hyderabad. | Positive |
https://www.moneycontrol.com/news/business/tiffany-to-enter-india-open-stores-in-delhi-mumbai-in-partnership-with-reliance-4308431.html | (Image: Reuters)
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Iconic American jeweller Tiffany & Co said it will enter the Indian market in partnership with billionaire Mukesh Ambani's Reliance Industries and plans to open its first store in Delhi this year and one in Mumbai next year.
Tiffany, which is known for its diamond engagement rings and robin's egg blue boxes, will be another marquee name to join the ever-growing portfolio of Reliance. In May, it had bought British toy-store chain Hamleys.
In a statement, Tiffany said it will enter the Indian market through a joint venture with Reliance Brands Ltd.
"Through a joint venture, Tiffany plans to open new stores in Delhi in fiscal 2H 2019 and Mumbai in 2H 2020, capitalising on its already strong image and brand awareness in this emerging and style-conscious luxury market," the statement said.
Tiffany, which operates more than 320 stores in over 25 countries with over 80 in Asia-Pacific, as well as e-commerce websites in 14 markets, is targeting the world's second-biggest gold jewellery market.
"As a global luxury jeweller with stores in many of the world's most important cities, Tiffany's emergence in these Indian commerce centres with their growing luxury consumer base presents a unique opportunity," said Philippe Galtié, executive vice-president of global sales, Tiffany & Co.
"We are proud to work with India's leader in luxury retail, RBL, to develop a meaningful presence and further expand our brand equity in this important market."
Reliance Brands Chief Executive Officer Darshan Mehta said Tiffany needs no introduction in India -- it is iconic and timeless.
"We look forward to bringing Tiffany's renowned jewellery collections and superlative diamonds to India," he said.
Reliance Brands Ltd (RBL), which began operations in 2007, is part of the oil-to-telecom group Reliance Industries Ltd (RIL).
RBL's portfolio of brand partnerships includes Armani Exchange, Bottega Veneta, Brooks Brothers, Bullfrog, Burberry, Canali, Coach, DC, Diesel, Dune, Emporio Armani, Ermenegildo Zegna, G-Star Raw, Gas, Giorgio Armani, Hamleys, Hugo Boss, Hunkemoller, and Iconix
It also comprises Jimmy Choo, Kate Spade New York, Kurt Geiger, Michael Kors, Mothercare, Muji, Paul & Shark, Paul Smith, Pottery Barn, Pottery Barn Kids, Quiksilver, Replay, Roxy, Salvatore Ferragamo, Satya Paul, Steve Madden, Superdry, Scotch & Soda, Thomas Pink, Tumi, Villeroy & Boch, West Elm and Womo.
RBL operates over 470 stores and 340 shop-in-shops in India.
In May 2019, RBL marked its first international foray by acquiring the British toy retailer, Hamleys. Globally, Hamleys has 170 stores across 18 countries.
“Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.” | Tiffany & co plans to open its first store in Delhi this year and one in Mumbai next year. the american jeweller will be another marquee name to join the ever-growing portfolio of Reliance. in may, it had bought British toy-store chain Hamleys. in a statement, Tiffany said it will enter the Indian market through a joint venture with Reliance Brands Ltd. | Positive |
https://economictimes.indiatimes.com/markets/forex/rupee-crashes-below-72-mark-against-dollar/articleshow/70844967.cms | Mumbai: The rupee on Monday declined by 36 paise to close below the 72 level against the US currency for the first time in nine months, hit by a 'flash crash' in global currencies due to uncertainty over the trade front.The rupee settled down by 36 paise at 72.02 to the US dollar , the lowest closing level since November 14, 2018, even as equities spurted more than 700 points at close on stimulus measures.The local currency had retreated to a low of 72.25 in day trade following a flash crash in currencies such as Turkish lira, Chinese yuan , and Australian dollar against the US dollar.The global currencies faced a meltdown in the overnight trade due to the escalation between the US and China over the weekend.The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.31 per cent to 97.94 after the euro and the pound dropped.However, reassuring comments by the world's two largest economies on Monday that they are willing to resolve issues through calm negotiations helped the currencies pare their losses.The assurance also supported the crude oil prices with the benchmark Brent crude gaining 0.64 per cent to USD 59.72 per barrel.Chinese Vice Premier Liu He said that his country was willing to resolve the trade dispute with the US through "calm" negotiations.US President Donald Trump said that the US and Chinese trade negotiators would "very shortly" resume talks in what he described as a breakthrough in the two economic superpowers' trade war.The comments triggered a rally in stock markets with the BSE Sensex surging by 792.96 points to 37,494.12, led by gains in banking stocks.Foreign investors remained net sellers in the equity market offloading stocks worth Rs 752.9 crore on a net basis on Monday.The 10-year Indian government bond yield was down at 6.49 per cent. | rupee settles below 72.02 for the first time since November 14, 2018. local currency had retreated to a low of 72.25 in day trade. dollar index rose 0.31 per cent to 97.94 after euro and pound dropped. but reassuring comments by world's two largest economies helped currencies pare losses. equities spurted more than 700 points at close on stimulus measures. | Positive |
https://www.moneycontrol.com/news/business/economy/uae-can-play-vital-role-in-pm-modis-vision-of-5-trillion-economy-says-official-4615841.html | The United Arab Emirates (UAE) can play a vital role in achieving Prime Minister Narendra Modi's vision of making India a USD 5 trillion economy by 2025, UAE Ambassador to India Ahmed Albanna said.
Participating in the inaugural session of Himachal Rising Global Investors' Meet at Dharamshala on Thursday, Albanna said, "The UAE is the third largest business partner of India after the USA and China."
The bilateral relations between India and the UAE have strengthened after the first visit of Modi to the UAE in August 2015, he noted.
Modi's subsequent two visits to the UAE in February 2018 and August 2019 and, visits of Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan to India in February 2016 and January 2017 as the chief guest on the Republic Day celebration had made the bilateral relations more cordial, he added.
The trade between the two countries has reached to 60 billion dollars in 2018-19 from a mere 185 million dollars in 1980, he added.
Three millions Indians are living in the UAE, he mentioned. | the united arab Emirates (UAE) can play a vital role in achieving Prime Minister Narendra Modi's vision. bilateral relations between India and the UAE have strengthened after the first visit of Modi to the UAE in 2015. trade between the two countries has reached to 60 billion dollars in 2018-19 from a mere 185 million dollars in 1980. the UAE is the third largest business partner of India after the USA and China. | Positive |
https://www.moneycontrol.com/news/business/ola-appoints-julien-geffard-to-lead-europe-ev-operations-6216811.html | Ride hailing major Ola on Friday said it has appointed Julien Geffard as the Director of Go-To-Market Strategy for its electric business in Europe as it prepares to launch its range of electric scooters in Europe in the coming months.
In this role, Geffard will be responsible for building and growing Ola’s European operations for its electric business and will be based in Amsterdam, a statement said.
He brings over 15 years of deep automotive experience. Before joining Ola, he was the Global Commercial Director and a member of the board of management at Peugeot Motorcycles. He has worked with Bentley Motors Ltd, Alpine and BMW.
"We are happy to announce the appointment of Julien to lead our European operations. As we gear up to bring the first of our range of electric vehicles to markets around the world, Julien’s expertise will be key to building our electric business across Europe," Bhavish Aggarwal, Chairman and Group CEO of Ola, said.
He added that as a rapidly growing hub of electric vehicles (EVs), Europe is a key market for Ola to realise its vision of moving the world towards sustainable mobility solutions.
Ola said it is in advanced stages of setting up the world’s largest scooter manufacturing facility in India, and once completed, it will have the capacity to produce over two million scooters a year.
"Europe is a key market for us and our tech and digital expertise, coupled with the unique customer experience, will be key for us as we launch our products across Europe," Geffard said.
The two-wheeler EV market in Europe has seen double-digit growth in 2020, with customers looking for differentiated products that are stylish, smart and lightweight, available at competitive prices.
The development of EV charging infrastructure is expected to continue as governments make stronger investments to encourage sustainable mobility solutions aimed at zero vehicle emission. | the ride hailing company has appointed Julien geffard as its director of go-to-market strategy for its electric business in Europe. geffard will be responsible for building and growing Ola’s European operations for its electric business and will be based in Amsterdam. he brings over 15 years of deep automotive experience. the two-wheeler EV market in Europe has seen double-digit growth in 2020. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/pm-holds-meet-to-discuss-strategy-to-attract-investment-amid-pandemic/articleshow/75474244.cms | NEW DELHI: With the economy under stress following the countrywide lockdown, Prime Minister Narendra Modi held a comprehensive meeting on Thursday with the finance minister Nirmala Sitharaman, home minister Amit Shah and commerce minister Piyush Goyal to discuss strategies to boost investments in India The PM also held a separate meeting to deliberate potential economic reforms in the mines and coal sectors to boost the economy. He directed that thermal coal imports should be substituted by the high levels of the fuel available in the country this year, the Prime Minister’s Office (PMO) said.The ministers considered ways to attract more foreign investments into India as well as promote local investments to lift the economy against the backdrop of the Covid-19 pandemic, the PMO said in a statement. “It was discussed that a scheme should be developed to promote more plug-and-play infrastructure in the existing industrial lands, plots, estates in the country and provide necessary financing support,” the government said. “The PM directed that action should be taken for a more proactive approach to handhold investors, to look into their problems and help them in getting all the necessary Central and state clearances in a time-bound manner.”Strategies to bring investments into India in a fast-track mode and to promote domestic sectors were on the agenda. Discussions were held on guiding states to evolve their strategies and become more proactive in attracting investments. Reform initiatives by various ministries should continue unabated and obstacles that impede the promotion of investment and industrial growth should be removed, the PMO said.The meeting on mines and coal sector focussed on ensuring easy availability of mineral resources from domestic sources, upscaling exploration and attracting investment and modern technology to generate large-scale employment, the PMO said.Auctioning of additional blocks, encouraging wider participation in such sales, increasing production of mineral resources, reducing the cost of mining and transporting and reducing the carbon footprint with environmentally sustainable development were also discussed. The participation of the private sector in exploration and mining and making the public sector more competitive were also deliberated. “Aspects related to increasing the efficient and environmentally sound first-mile connectivity for coal transport from mines to railway sliding, automatic loading on rail wagons, coal gasification and liquification, coal bed methane exploration were also discussed for potential reforms,” the PMO said.The Confederation of Indian Industry welcomed the initiatives. Director general Chandrajit Banerjee said the PM’s strategy to get more investments into India and to enhance domestic investments was very apt. | pm holds comprehensive meeting with finance minister, home minister and commerce minister. he also deliberated potential economic reforms in the mines and coal sectors to boost the economy. discussions were held on guiding states to evolve their strategies. the meeting was held in a bid to boost investment and industrial growth. the government is urging the government to take a more proactive approach. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/liquor/online-home-delivery-will-make-liquor-more-accessible-to-women-buyers-united-spirits-ltd/articleshow/76403079.cms | MUMBAI: United Spirits Ltd., India’s biggest liquor company with a brand portfolio that includes Johnnie Walker and McDowell, said home delivery and online sales will not just expand the basket size but also help more women consumers.“In many states, women do not want to go into a retail store to buy alcohol – it’s just unpleasant. In fact, I would go to the extent of saying they feel unsafe. If you are ordering online, you will browse and you will buy what you want,” Anand Kripalu , managing director at the Diageo-controlled company, told investors during an earnings call.For the spirits industry, accessibility is one of the biggest barriers for consumption in a market with 75,000 retail outlets , compared with over 10 million stores for fast moving consumer products. Also, after the lockdown, several stores have restricted the entry of people by placing counters in front, which could alter the display of products.“When you start browsing in a retail store, you end up buying more than you did in an over-the-counter store. The day you start browsing on Amazon or Flipkart, you start buying a lot more things than you did and you are able to double click and get a lot more details,” Kripalu added.Many state governments that lost revenue during the lockdown tried to boost their coffers with a tax increase after the Centre allowed liquor shops to open in the first week of May. At present, two-thirds of the retail outlets have re-opened and initially saw massive queues outside outlets. Yet, sales volumes plummeted by 33% to 90% last month in five markets that account for 40% of the country’s spirits segment due to the high taxes on liquor.Almost a dozen states including Maharashtra, West Bengal, Delhi, Punjab and Tamil Nadu have allowed home delivery of liquor, something companies have been trying to unlock for many years. Also, Zomato and Swiggy now deliver alcohol in some states.“Online can help companies plan activities around product development as new audience and channels can provide additional insights on changing consumption behaviour,” said Devendra Chawla, managing director of Spencer’s Retail and Nature’s Basket, which have been selling spirits for several years and started online and home delivery through select stores.Also, the government and companies are making sure the new delivery model doesn’t bypass traditional retailers, which paid high licence fees to enter the business.“You can’t have an Amazon kind of model in this industry because the outlets are so few and they have paid high licence fees to exist. And I don’t think any excise department will easily create a model that will destabilise the retailer themselves,” said Kripalu. | a dozen states including Maharashtra, west Bengal, Delhi, Punjab and Tamil Nadu have allowed home delivery of liquor. a number of companies are also launching online and home delivery. the government is also making sure the new delivery channels are available. the lockdown has also affected the access of people to the stores. a number of stores have placed counters in front of customers. | Positive |
https://www.moneycontrol.com/news/business/personal-finance/personal-finance-apps-are-now-as-popular-as-tiktok-due-to-covid-19-well-almost-as-5298381.html | Internet-based personal finance startups have seen a spike in usage during the COVID-19 pandemic, as more users have flocked to save money, rebalance portfolios and explore safer investment options from home.
Wealth management startups including Groww, INDWealth and Zerodha, among others, have seen faster adoption and more engagement than before, as online services have gained from the pandemic which has put a stop to all offline activity and led to a lockdown.
For instance, Smallcase, which provides digital infrastructure to brokerages to invest in portfolios of stocks and exchange-traded funds (ETFs), has added over 3 lakh investors to its platform since March, compared to 1.27 lakh in the January-February 2020, founder and CEO Vasanth Kamath said.
Smallcase can be seen as a curated basket of stocks. Kamath also said they have seen about 3.5 lakh smallcase transactions since March, compared to about 1.5 lakh in January and February combined.
People transacted on these platforms also at a time when Indian equity markets have hit their lowest points in years, and are seeing a slow recovery, on the back of weak economic sentiment. The benchmark S&P BSE SENSEX hit a three-year-low of 29,133 points on March 18, just before India officially went under lockdown. Since then, it has recovered to about 30,932, still at mid-2017 levels.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
“We have seen stockbroking and wealth management firms get a lot more traction during the lockdown. Despite rough markets, investors have taken to online investment routes,” said Harshil Mathur, co-founder and CEO of payments startup Razorpay.
Expansion plans
During the pandemic, although investors redeemed mutual funds in March when markets fell sharply, overall investments have still risen significantly. The growing opportunity for online wealth management firms has also made these startups push forward their expansion plans.
Online investment startup Groww, which so far provides a platform to invest in mutual funds, plans to start direct equity investing in the next month. While it is currently available by invite, it will roll out to the public in the next month, said Lalit Keshre, co-founder and CEO of Groww.
Since its mutual fund investment option is free, Keshre sees direct equity investing as the primary revenue generator going forward.
“While new users on Groww are increasing by 40 percent month-on-month, compared to 20-30 percent earlier, I cannot disclose further numbers,” Keshre said.
New-age investment apps are also acting, or looking to act as wealth managers, and are finding traction with millennials and new investors -- the audience a Groww or Zerodha caters to, as well as high-net-worth individuals or experienced investors, due to which top venture capital funds are backing them. While Groww and Smallcase are both backed by Sequoia Capital, INDWealth, which describes itself as an “AI-driven financial advisory engine for HNIs” is backed by Tiger Global Management and Steadview Capital -- both active investors in Indian unicorns and tech start-ups.
Investors stay cautious
INDWealth’s founder and CEO Ashish Kashyap, who was earlier CEO of travel portal Ibibo, declined to give out specific numbers, but said that the number of new users has gone up 5x, while engagement on the app has gone up 2x in the last 60 days.
COVID-19 is also changing investor patterns, driving them towards caution. “We have seen a lot more money move into safety. People are buying more gold bonds, and are rebalancing their portfolios to manage risk,” Kashyap said.
“COVID-19 has helped us as investors understand the importance of managing risk during such times; smallcases being a portfolio by definition helps manage risk by design while building wealth for the long term. So it’s a good avenue for new investors to access,” said Kamath.
To be sure, while personal finance startups are seeing early adoption, a lot of the growth for some players has to do with free services, making it unsustainable in the long run, industry insiders warn. “High percentages of growth are because of a low base effect -- many of these players have only a few active users -- and/or because it is free. Their long term potential will depend upon whether they can charge for services and still remain as popular. But the change of personal finance towards online mediums is here to stay,” an investor in the space said, requesting anonymity.
Disclosure: Moneycontrol has partnered with Smallcase Technologies to invest directly from its platform. | internet-based personal finance startups have seen a spike in usage during the COVID-19 pandemic. more users have flocked to save money, rebalance portfolios and explore safer investment options from home. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. | Positive |
https://www.businesstoday.in/sectors/energy/private-sector-to-be-allowed-entry-in-coal-mining-sector-govt-monopoly-removed-sitharaman/story/404027.html | Finance Minister Nirmala Sitharaman has said the government will open up coal mining for private sector. The monopoly that the government has in coal mining will be removed, she said. She said that this move has been announced keeping in mind the need to reduce import of substitutable coal and increase self-reliance in coal production.
As the private sector is allowed entry into the sector, the government will also ensure competition and transparency. Sitharaman further added that revenue sharing mechanism has been introduced, which means that unlike earlier, now any party can bid for a coal block and sell in the open market. The current norms only allows captive consumers with end-use ownership to bid.
Entry norms into coal sector would also be liberalised. There would be no eligibility criteria but only upfront payment with a ceiling. Moreover, nearly 50 blocks would be offered immediately.
The Finance Minister also said that now even partially explored blocks would be eligible for auction as opposed to the earlier norms that only allowed auctioning of fully-explored blocks. "Production earlier than scheduled will be incentivised through rebate in revenue-share," said the minister.
Also read: Govt to create land banks to boost industrial development: FM
Sitharaman said that gasification and liquefaction of coal would be incentivised through rebates. She said this measure would ensure there is lesser impact on the environment and will assist India to become a gas-based economy.
The minister also announced Rs 50,000 crore for infrastructure development of the coal sector including evacuation measures. This fund will also include Rs 18,000 crore allotted for mechanised transfer (conveyor belts) of coal from mines to railway sidings. This will also ensure lesser impact on the environment.
The Finance Minister said that Coal Bed Methane extraction rights would be auctioned from Coal India. Additionally, ease of doing business measures would also be undertaken.
CIL's consumers have also been given concessions worth Rs 5,000 crore in commercial terms. "Reserve price in auction for non-power consumers has been reduced, credit terms eased and lifting period enhanced," said Sitharaman.
Also read: Nirmala Sitharaman Press Conference at 4 PM Live Updates: Budget provisions to promote domestic defence production
Also read: Coronavirus Live Updates: Lockdown 4.0! Home Ministry may issue new guidelines today; India's cases-85,940 | finance minister says government will open up coal mining for private sector. monopoly that the government has in coal mining will be removed, she says. government will ensure competition and transparency in the sector. 50,000 crore for infrastructure development of the coal sector. a total of 4,000 cases of cholera have been reported in india. a total of 4,000 people have died in the last three years. | Positive |
https://economictimes.indiatimes.com/small-biz/sme-sector/cii-partners-with-whatsapp-to-train-smes-across-india/articleshow/66411816.cms | Confederation of Indian Industry (CII) will work with WhatsApp to educate and train small-medium business owners (SMEs) and entrepreneurs on how the WhatsApp Business app can help them connect with their customers and grow their businesses, CII said in a statement.CII said WhatsApp and CII will work to enhance business communication for Indian SME's through CII’s SME Technology Facilitation Centre. This was set up in November 2016, with the objective of creating awareness amongst SMEs in India on technological solutions that can be optimally adopted to enhance their overall competitiveness. There will be on-ground training around the country to explain the features and best practices on the App. In addition to this, business owners can attend training webinars to help them grow and expand their businesses.According to a survey demonstrating the economic impact of WhatsApp in India, 70% of SMEs on WhatsApp in India say that they built their business on the platform. 78% of these SMEs say they have increased sales because of WhatsApp. Until the launch of the WhatsApp Business app earlier this year, small businesses didn’t have a formalised way to use WhatsApp to connect with their customers.Neerja Bhattia, executive director, CII said: “CII SME Technology Facilitation Centre, is CII’s initiative to provide latest technology support to SMEs in India. It’s operating as a one stop solution centre, summating different upgraded and latest technology from our multiple large technology partners with an aim to enhance access to technology for Indian SMEs and create technical literacy amongst them.The Centre also provides an opportunity to its technology partners to expand their market and reach out to SMEs spread through out the country with their product and services.”Ben Supple, public policy manager, WhatsApp, said, “Whether it’s a chai stand or saree shop, small businesses are at the heart of vibrant communities and the engine that makes the Indian economy grow, and by partnering with CII, we’re committed to helping SMEs achiceve success. Small businesses need to meet their customers where they are, and in India, that’s on WhatsApp. With the WhatsApp Business app, small businesses can easily and efficiently connect with their customers, and we’ll be introducing new features in the future to continue helping them grow.”Launched in January 2018, the WhatsApp Business app was developed to improve SMEs’ communications with their customers, by creating an official presence for those companies in the app and enhancing their customer care, with specific tools to make communicating with customers easier and more efficient. More than three million peopleare already using the WhatsApp Business app worldwide.WhatsApp and CII will develop content to be distributed among entrepreneurs both in physical and digital formats, addressing the advantages of the professional use of WhatsApp Business and promoting the creation of networks for knowledge sharing. WhatsApp will also give workshops to CII team members across the state, to expand contentdissemination and offer local support for cities across India. The partnership starts on 29th October with training in Pune and is expected to reach small and medium businesses along with start-ups and members of CII. | CII will work with WhatsApp to educate and train small-medium business owners (SMEs) and entrepreneurs on how the WhatsApp Business app can help them connect with their customers. there will be on-ground training around the country to explain the features and best practices on the App. 78% of these SMEs say they have increased sales because of WhatsApp. Until the launch of the WhatsApp Business app earlier this year, small businesses didn’t have a formalised way to use WhatsApp to connect with their customers. | Positive |
https://www.moneycontrol.com/news/business/trend-continues-mastertrust-launches-zero-commission-platform-to-invest-in-global-stocks-5727421.html | Mastertrust, the diversified financial services conglomerate, on August 19 announced the launch of a platform to enable Indian traders to invest in international stocks. Earlier this week, ICICI Securities and Axis Securities had also announced these offerings for their clients.
The brokerage will offer clients services such as fractional investing wherein one can by less than one share of a global stock.
"The clients are offered fractional investing facility to buy less than one share, enabling the customers to invest as low as $1 for high priced shares such as Amazon, Google, or Berkshire Hathaway," said the company in its statement.
The company offers a simplified remittance process for investors and with no restriction to maintain minimum account balance. Therefore, investors have the leverage to buy and sell at any time, it said.
Mastertrust has partnered with Vested Finance, a California-headquartered US Securities and Exchange Commission (SEC) registered investment advisor.
"The platform not only offers international exposure to its clients with an opportunity to invest in world's biggest stock market but also enables them to invest in US stocks and ETFs conveniently from India at zero commission," said Mastertrust.
The investors get easy access to diverse asset classes like global stocks, global bonds, REITs, treasury bonds, it added.
"Many Indian investors have a keen interest in international exposure for several benefits. The investment culture needs to be nurtured and developed by offering and helping investors with excellent opportunities and experience. I believe the investment climate in the country will considerably progress with global experience," Puneet Singhania, Director at Master Capital Services said.
On August 18, Axis Securities announced the launch of Global Investing, a smart solution platform for Indian retail investors to help them invest in the US stock market. A day earlier, ICICI Securities joined forces with Interactive Brokers LLC, a US-based online brokerage firm with multi-asset and multi-geography trading capabilities, to offer its customers the ability to invest in the US markets through a complete digital experience from onboarding to trading.
During the lockdown period, there has been a significant increase in demat accounts. Limited to their homes, many people started investing in stock markets to which was trading at multi-year lows in the fall out to COVID-19. It was one of supporting factor for the market rally. | mastertrust launches platform to enable Indian traders to invest in international stocks. the company has partnered with Vested Finance, a US-based investment advisor. ICICI Securities and Axis Securities also announced these offerings for their clients. a day earlier, ICICI Securities joined forces with Interactive Brokers LLC. a day earlier, ICICI Securities joined forces with Interactive Brokers LLC. | Positive |
https://economictimes.indiatimes.com/tech/hardware/india-phone-exports-more-than-doubled-on-year-to-3-6-crore-units-in-fy19-20/articleshow/75186636.cms | Elevate Your Tech Prowess with High-Value Skill Courses Offering College Course Website IIT Delhi IITD Certificate Programme in Data Science & Machine Learning Visit IIM Kozhikode IIMK Advanced Data Science For Managers Visit IIM Kozhikode IIMK Senior Management Programme Visit
NEW DELHI: India’s phone exports for FY19-20 stood at 3.6 crore units, or more than double the previous year's 1.7 crore units, according to data released by ministry of commerce on Wednesday.“We have attracted interest from companies such global giant Samsung and Chinese OEMs in the mobile phone segment coupled with the right set of incentives for them,” said Faisal Kawoosa, founder and chief analyst, TechArc “The mass domestic market, which was underpenetrated for long, has provided an opportunity to these players to address local demand as well as set-up base here,” he added.In terms of value, the on-year growth in exports last fiscal year ended March 31 was 91% with India exporting devices worth Rs 21,000 crore. Exports have surged from 20 lakh units in FY16-17.Correspondingly, imports in the category last FY plunged 81% to 20 lakh from 2.6 crore in the previous fiscal. Phone imports have fallen from 7.5 crore units in FY16-17.The data is mentioned under the category ‘Telephones for cellular or for other wireless networks’ which includes feature phones, smartphones, and phone assembly parts as well as other components such as chargers. Almost 90% of this number accounts for finished devices, analysts said.India's local production has been increasing with sops for local manufacturing encouraging the likes of Apple Xiaomi , Oppo, Vivo, OnePlus , Realme and Samsung to either up up or expand local manufacturing in India, and also export from the world's second largest smartphone market.The industry has largely benefited from the ‘Make in India’ initiative by the government- the most effective being the Merchandise Export Incentive Scheme (MEIS).Under MEIS, the government provides duty benefits of upto 4% depending on exported product and country. Rewards under the scheme are payable as percentage of realized free-on-board value and, MEIS duty credit scrip can be transferred to the company for working capital needs or used for payment of various duties such as basic customs duty.This incentive will be increased to between 4% and 6%, applicable from August 1 this year, under the new production-linked incentive which has a budgetary outlay of Rs 41,000 crore, according to the government.India's contribution to the global smartphone market has risen from 9% in 2016 to 16% 2019 as major handset makers diversify to countries other than China.China has been losing lustre as world’s phone factory as the supply chain and production ecosystem has been steadily shifting abroad due rising costs, trade tensions with the US, and a re-prioritization of other consumer markets, research firm Counterpoint had said in a report.As per government data, India has around 270 factories making handsets and components. | india's phone exports for FY19-20 stood at 3.6 crore units, or more than double the previous year's 1.7 crore units. the on-year growth in exports last fiscal year ended March 31 was 91% with India exporting devices worth Rs 21,000 crore. imports in the category last FY plunged 81% to 20 lakh from 2.6 crore in the previous fiscal. | Positive |
https://economictimes.indiatimes.com/opinion/interviews/demand-for-designers-will-grow-exponentially-dr-sanjay-gupta/articleshow/62682406.cms | For an economy to achieve scale a focus on design is essential — be it product design, industrial design, architecture, arts and on. As the Indian economy grows there will be greater demand for design professionals to create that competitive edge and meet aspirations of cutting edge design from the population. World University of Design (WUD), located at Sonipat, Haryana, seeks to meet the rising demand for design professionals and also produce research papers on trends in design and its growth and evolution in India. Sanjay Gupta vice chancellor designate, World University of Design says demand for designers in India will grow exponentially. The University offers students an experiential learning opportunity in various design streams. Gupta, former dean of the National Institute of Fashion Technology (NIFT) sees the university emerging as a centre of excellence in design studies in the coming years. Edited excerpts:NID was established about 50 years back for industrial design, product, communication textile etc but not for fashion. NIFT was established 25-30 years back to strengthen the export industry with the focus on garments only. Whereas if you look at the creative industries like architecture, building, spaces, residential, commercial, designing visual arts — arts, painting, architecture – were in different silos despite being closely connected. We have brought all of them together. WUD is bigger than NID and NIFT combined as we are offering all of what they offer and more.Everything needs design. Since independence we have been trying to catch up with the world. Despite being a design conscious society India did not leverage its own design potential, which is starting to happen now. You see it in advertising which are more Indian in flavour and that is now getting into everything. If you look at automobiles design — none of them have been made for Indian population or the Indian way of living — they come with European or Japanese or American ergonomics. But things are changing now. Every industry is discovering use for designers to develop India specific products. Industry estimates suggest India needs 10,000 to 12,000 designers every year.We have kept it small as the model we have evolved is immersive, experiential learning for students which requires in-depth experience. So we have kept it at 600 students per year. We will have about 60 faculty members with a faculty student ratio of 1:10. We already have 22 faculty members. It is operational, classes are on. The mission is to prepare human resources for design.Entry is via examination. We test design, art and general aptitude abilities. Anybody from any stream (science, arts, commerce) can join as design is an aptitude that cuts across streams. We offer both graduate and post graduate courses.Our focus will be on product design, industrial fashion, graphic, communication, games. Besides, visual arts curation, history of art, history of design and strategy and design management.I think the way the country is growing there will be need for policy intervention and need for some kind of research data base. We are lagging behind in both. The best of books on Indian art and design have been written by outsiders. There is need for research data base, need for think tank and policy direction. We plan to emerge as a centre of excellence where all this can incubate, alongside regular teaching.Demand for designers will grow exponentially. Getting faculty is a major challenge because the whole sector is new. There aren’t many students who go on to do masters in design while if you get into university format as defined by the University Grants Commission (UGC) the minimum requirement for teaching is a Masters degree. International faculty is available in plenty as most institutes overseas are closing or scaling down due to lack of students. But the rules to hire them are not easy. Faculty will be a major challenge as the sector is growing and there are plenty of opportunities for students in corporates as well. | world university of design (wUD) is located at sonipat, Haryana. it seeks to meet the rising demand for design professionals. industry estimates suggest India needs 10,000 to 12,000 designers every year. the university offers students an experiential learning opportunity in various design streams. it is bigger than NID and NIFT combined. the university is a centre of excellence in design studies. | Positive |
https://www.financialexpress.com/brand-initiative/reinvent-and-stay-with-the-times-businesses-need-to-shed-their-skin-too/2049243/ | Eventually, every business will reach its peak level. Sometimes, it is only a matter of the market size or company resources, and other times, the local economy may be shifting. Whatever the reason may be, companies need to be ready to shed their skin and reinvent themselves.
This is better done sooner rather than later. Great company leaders and executives are skilled in predicting the market and current trends, as well as taking into account the company’s resources and possibilities. If reinvention is done before something is broken, the company has better chances of succeeding and flourishing.
Often times, the best and easiest moments are right before downhill. Thus, as a business owner, it is vital that you know when to make the change and what kind of change is the best course of action.
Expired base of competition
Often times, the base of competition expires right before the company reaches its peak level. As an example, let us look at Nokia, the cell phone provider that (a couple of decades ago) was the leader in its market. Nowadays, however, the market has been taken over by Apple and Huawei. This is not because Nokia does not have the resources or technology to follow these big-time businesses, but because Nokia failed to see the much-needed call for reinvention.
As we are talking about Nokia, we should not forget that Nokia did reinvent themselves years ago, and extremely dramatically. Before Nokia manufactured cell phones, it used to make rubber boots. And as the markets changed and cell phones started to take over, Nokia was quick to shed its cocoon and turn into a butterfly.
In fact, Value Marketing, a Malta-based iGaming company, did the same.
“We used to operate in the field of face-to-face marketing. However, I didn’t much care for it myself, and I had no passion for it. As I am an avid poker player and I saw many fantastic possibilities in iGaming and online-based businesses, we changed our business model and market completely. I do not regret it for one second”, says Reza Shojaei, the founder of Value Marketing.
Nowadays, Value Marketing is a successful multinational, multi-million-dollar company that is expected to have a valuation of 3-5 million dollars in 2020. It appears that changing the business model resulted in effective and profitable results for Value Marketing, that is in charge of Casino Topp and CasinoTop.com.
Hidden capabilities give room to grow
Many companies have hidden talents and capabilities that may allow them to expand and grow within their own market. Oftentimes, high-performing businesses have hidden skill sets that keep them in the ever-changing game. To use an example, Toyota does not only manufacture cars. Instead, it possesses engineering skills as well, which has allowed them to put Lexus and the Prius on the market.
On the other hand, music industry has evolved within its market as a whole. Before, we listened to music on cassettes, from where we moved up to CD’s and then digital music distribution. Effectively, selling music digitally on iTunes, for instance, allows wider and faster distribution with less costs.
Value Marketing has made its mission to be a global conqueror in their market. Slowly, they are taking on different countries, now servicing a total of 12. As iGaming is big around the globe, there is much room to grow – for the company and for the people who work for the company.
Talents within the company
Every business wants to make as much profit as possible, which is ultimately achieved by keeping the costs low to increase the profit margin. Too often, this is done by hiring less employees and giving each of them more responsibilities. However, in order to keep the company growing and with the times, it needs skilled and talented employees who are motivated and passionate about their jobs. In other words, innovative up-and-comers can give you some outside insight and a pair of new eyes to look at the company, and possible new business opportunities, on another level.
“We have hired multiple copywriters, editors, designers, and developers from around the world. Granted, our business operates purely online, so it is easy to do so. Hiring globally allows us to bring in the best and most motivated talent with much needed skill sets”, Shojaei explains.
Value Marketing has three main products: CasinoTopp.net, Norges Casino and Casino Top, they both operate on the iGaming market, but they service different countries. As Shojaei has on-boarded freelancers from different countries around the world, they are able to tackle language and cultural barriers when it comes to iGaming.
“Your company might be able to get ahead of the curve and reach higher levels simply by hiring new employees, freelancers, or even temporary consultants. Reinvention may not even be needed – just a simple shift in the way the business operates” according to Shojaei.
The top dogs need to change when needed
Let’s face it: executives, CEO’s, and founders have a lot on their plate. Running a business (especially a big one) is not a piece of cake. While other executives are great at running the business on a day-to-day basis, whereas others are excellent at entering new markets. Both of these skills are needed for the business to expand, grow, and (in some cases) even reinvent). Though the entire roster of executives may not need to change, it may be beneficial to bring in outside consultants, at the very least.
In fact, this is something that can pose a problem and even halt the growth of the company. Shojaei points out that, “ with his business, the problem was the location of all the copywriters. As many of them live in different time zones, messages came in at different times of the day or night”. He solved the problem by hiring a head of content, who is in charge of all the content and copywriters. This way, the writers have a point of contact while Shojaei can focus on growing the company.
Reinvent your goals
Each successful company has both short- and long-term goals. Short-term goals are easier to reach, and they may be set on a quarterly basis, while long-term goals are set on an annual basis. As your business grows, there may become a time to reinvent your goals, especially the long-term ones. In the long-term, you should take into account new trends, possible market changes, and other things that are constantly evolving and moving.
We are currently operating in 12 countries, but we are slowly taking on new markets. Our goals shift and change, as we complete these checkmarks on our list, Shojaei tells.
Put people first
Shojaei underlines the importance of people – both customers and employees. Without customers, you will not have a business. Without happy customers, you will have a bad business. Ultimately, your employees are (often times) the contact between your business and the consumer, so the employees need to represent the company in the best possible way.
Happy customers talk and recommend – but unhappy customers talk, too.
“Our goal is to write valuable and honest content for our readers. The most important thing for us is transparency and the fact that the readers can trust us. It makes them come back”, Shojaei says.
Some researchers have shown that when employees have room to grow within the company, they are happier. Giving them possibilities and motivating them to do better, they are ultimately willing to go the extra mile that can be a vital difference between a successful and unsuccessful company. That being said, sometimes all a company needs is a shift in what they offer – or a shift in employees.
When is change and reinvention desired and needed?
Maybe by this point, you have determined that change or reinvention are sort of needed. The first few years in the lifespan of your business are often the years of getting started. The business may be still in the startup phase. Making small changes at this point is vital if needed, but drastic changes should be carefully considered and made only when absolutely necessary for the company’s relevance and success.
The next phase is the growth phase, which is when it may be ideal to reinvent the business with small or big changes. Anything can trigger the need or want for reinvention: maybe you are bored, maybe the market has shifted, or maybe the business just is not growing anymore.
Decide what and how
After the decision for reinvention has been made, it is time to decide what to change. This decision can be a hard one, as the ultimate goal is to be profitable (maybe even more profitable than before) and at the same time, meet your personal goals.
If the reinvention is needed to make the company profitable, it is suggested to work out what your company’s core strengths are and focus on them, while making possible budget-cuts. It is also vital to make the decision between where the budget can be cut and where it should be increased.
Sometimes, the goal may be to do something completely different, like Shojaei did with Value Marketing. “Changing from face-to-face sales to iGaming was not only a business decision, but personal, too”, says Shojaei. Shojaei has always been a passionate poker player, which makes iGaming market interesting for him.
“I love what I do, and I look forward to work every day”, he explains.
Making the plan
Every successful business owner is great at making plans and sticking to them. Depending on what kind of reinvention and changes are needed, you may even need to make a whole new business plan and start from scratch. The only difference is, that this time, you will be changing and existing business into a possibly completely different business model.
The key factor here is to make a plan and work the plan. Changing the concept may be challenging, so changes can be done slowly.
Green light and go
As a business changes from an old business model to a new one, there needs to be an exit strategy in place for the old business. In addition, your new business needs a ramping up period, during which you negotiate leases, take on new business practices, and even hire new employees or train the existing ones. For a while, it may even be as if you were running two businesses at once.
Despite all this, it is important to stick to the exit strategy as well, no matter how much you just want to let go of the old model and dive into you new business. A successful shift is vital, and it should be done carefully, taking into account everything that could go wrong. It is also recommended to note that sometimes during the shift, profits may go down before the new model is ramped up.
Maintain
Reinventing your business can give you a rush, it can motivate you, inspire you, and even give you new ideas. It can be exciting and wonderful. While you let go of the old business, give yourself time to really let go of it. Many business owners have built their companies from the ground up and letting go of it may require a sort of a grieving process. Letting it happen can be beneficial, all the while maintaining the excitement about the new journey ahead.
(Brand Initiative – Content Provided by Growthxo) | if reinvention is done before something is broken, the company has better chances of succeeding and flourishing. if reinvention is done before something is broken, the company has better chances of succeeding and flourishing. if you are a business owner, it is vital that you know when to make the change and what kind of change is the best course of action. | Positive |
https://www.businesstoday.in/budget-2019/columns/budget-2019-5-key-expectations-that-govt-must-fulfil/story/312462.html | Pleasing a nation of 1.3 billion people is an unenviable task. Yet, when the finance minister unveils his last budget of the current term, that is exactly what he needs to do. Budget in an election year is always a tricky balancing act for any incumbent government considering that they have to walk a tightrope between fiscal prudence and populist measures. In Budget 2019 , Finance Minister Arun Jaitley's travails are further magnified by the string of recent losses in state elections, lower than expected divestment achieved during the year, lower than targeted collections from GST, weak consumer spending and a fragile farm sector.
We believe while the government will stay tethered to prudence, the balance will tilt in favour of populist measures designed to assuage restless voters who are currently sitting on the fence. We feel that the focus of the government in a populist budget would be to increase the disposable income in the hands of the citizens. This could have a multiplier effect as the increase in disposable income can likely give a fillip to consumption in the country, which will subsequently give a boost to consumer confidence. An incumbent government heading to elections and seeking a second term can certainly benefit from strong consumer confidence. Some of the key expectations from the government in this direction are as follows:
Increase in standard deduction: There is a very strong case for increasing the standard deduction limit for taxpayers from the current Rs 2.5 lakh to Rs 5 lakh. Some hints for the same can be gleaned from the recent ruling of the government to provide reservation for the economically weaker sections of the society, in which they have defined the weaker section to be any family whose household income in a year is less than Rs 8 lakh.
Increase the limit for 80C: It has been almost 5 years since the limit for investments under section 80C was revised upwards. We feel that the time is ripe to increase the limit for investments under 80C from the current Rs 1.5 lakh. This could have a positive impact on the markets as well as it will encourage citizens to invest in financial assets.
Real Estate sops with a focus on affordable housing: The current government's focus on affordable housing has been quite evident. Additionally, the real estate sector has also been encouraging the government to take steps to boost demand in the sector. We believe that this could take shape through an increase in the exemption limit for interest and principal on housing loans which would be in addition to the exemption given under 80C for principal repayment.
Also read: Govt may hike agricultural credit target to Rs 12 lakh crore
Universal Basic income framework/Minimum income for farmers: Instead of announcing a farm loan waiver, the government could set the stage for crystallising a minimum wage framework for the unemployed on the lines of social security. If not for the masses at large, it could be directed in some way to the agricultural sector, where some basic income is assured for the farmers owning specific acreage of land. By announcing this minimum income for farmers, the Modi government could gain a headway in appeasing the large rural vote-bank.
All the above changes, if implemented, would go a long way in driving the domestic consumption demand in the country and indirectly spurring industrial growth.
Priority sector lending status to MSME: On the corporate side, we expect the government to maintain status quo on corporate taxation. However, as is evident from recent policy announcements, the SME and MSME sectors will continue to be a focus area for the government. In a bid to further augment this segment, the government could accord them priority sector lending status which would facilitate faster and better access to credit for these companies. For start-ups, doing away with Angel Tax is something on the wish-list. That would ease the burden on young startups, which are looking to raise growth capital from investors.
The government so far has shown immense amount of prudence and has only occasionally resorted to appeasement politics. However, the stakes are higher in an election year and the tenuous balance between fiscal prudence and appeasement politics will have to be managed by the government with a great deal of finesse.
(The writer is Executive Director, IIFL Wealth Management) | arun jaitley's last budget of the current term is expected to be released in 2019. he says the focus of the government in a populist budget would be to increase the disposable income. he says the government should increase the standard deduction limit from Rs 2.5 lakh to Rs 5 lakh. arun jaitley: a populist budget would be a good way to boost consumer confidence. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/lack-of-support-from-big-leaders-funds-crunch-hurting-maharashtra-congress-candidates/articleshow/71589930.cms | Hello Tata, Goodbye Wistron: Anatomy of a Takeover Deal The Tata Group’s acquisition of Wistron’s manufacturing facility, which will make it the first Indian firm to assemble iPhones, is worth a total $750 million inclusive of debt, said people with knowledge of the matter. Both sides signed the takeover deal on Wednesday, they said.
India Graduates Summa cum Laude, Beats China Grades India has edged out Mainland China to become the most represented country in the QS World University Rankings: Asia 2024 for the first time ever, reflecting its higher education system’s rising prominence amid steps taken towards increasing research output, academic recognition and internationalization. | both sides signed the takeover deal on Wednesday. both sides will make it the first Indian firm to assemble iPhones. india has edged out Mainland China to become the most represented country in the QS World University Rankings: Asia 2024 for the first time ever. Mainland china is the most represented country in the rankings. a total of $750 million is being paid out by both sides. | Positive |
https://www.moneycontrol.com/news/business/real-estate/residential-sales-witness-modest-growth-office-segment-registers-40-growth-report-4494041.html | Representative image
Housing sales may have increased by 14 percent in the first nine months of the year but are yet to reach pre-demonetisation levels. The office segment, on the other hand, witnessed robust 40 percent growth in net absorption during the same period at 33 mn sq ft, according to a new report.
Residential sales failed to touch the levels seen in the pre-demonetisation era, when nearly 120,000 units were sold across the top seven markets, JLL's India Real Estate Market Update Q3 2019 said.
Compared to this, the top seven markets during the January-September period of this year witnessed a sale of around 115,000 units, it said. Mumbai, Bengaluru and Delhi-NCR continued to account for 60 percent of the total sales during the period.
During the July-September quarter of 2019 (Q3), sales momentum remained the same as compared to the corresponding period of 2018. Existing unsold inventory has come down as a result of a steady momentum in sales and drop in launches across the top seven markets, the report said.
The third quarter of 2019 saw a moderate decline in new launches of 4 percent on a year-on-year basis. Except for Mumbai and Delhi NCR, all the other cities witnessed a dip in new launches in the third quarter of 2019. Mumbai and Bengaluru continued to dominate new launches and formed more than 60 percent the overall launches during the quarter.
"The revival seen in housing sales in 2018 has been maintained during 2019 as well. Developers have been focusing on the timely delivery of already launched projects and have been trying to clear their unsold inventory. Since the beginning of the year, several measures including a cumulative 110 bps rate cut have been announced to help the sector revive and grow. While banks are yet to fully transmit the rate cuts by a corresponding reduction in lending rates, this has strengthened consumer sentiment. We hope that developers will be able to register good sales during the festive season," said Ramesh Nair, CEO & Country Head, JLL India.
New launches in mid and affordable segments down
The report also said that developers have continued to concentrate on the mid and affordable segments. However, new launches in these segments came down in most of the cities, mainly attributable to the already existing substantial number of under construction units in these segments.
Office absorption likely to surpass 40 mn sq ft by the end of the year
The office segment witnessed strong leasing, registering a jump of 40 percent during the same period as compared to the corresponding period in the previous year, the report added.
The third quarter has only strengthened the growth narrative set out at the beginning of this year. Nearly 11 mn sq ft of Grade A office space was absorbed during the third quarter (July-September), increasing the overall countrywide net absorption by 40 percent to about 33 mn sq ft in the first nine months of the year. To put things into perspective, 2017 and 2018 witnessed net absorption of 28.7 mn sq ft and 33.2 mn sq ft respectively in the entire year.
With the current pace, the net absorption is likely to surpass 40 mn sq ft by the end of the year.
Hyderabad topped the chart in net absorption and new completions, registering a 36 percent and 44 percent market share, respectively, on the two parameters during the July-September quarter. Bengaluru and Delhi-NCR market followed Hyderabad in net absorption and new completions. At the same time, quality commercial supply continued to be constrained within Mumbai.
“The demand in the office market is expected to grow at a similar momentum for the next few years,” said Samantak Das, chief economist and Head of Research & REIS, JLL India.
Co-working leasing remains muted
As for the leasing in co-working segment, it remained muted during the third quarter of 2019. The space taken up by operators increased to 13 percent of the overall leasing during January to September 2019 as compared to 10 percent seen during the corresponding period the last year, the report said. | housing sales have increased by 14 percent in the first nine months of the year. but the office segment saw robust 40 percent growth in net absorption. Mumbai and Bengaluru continued to dominate new launches. the third quarter of 2019 saw a moderate decline in new launches of 4 percent. a total of 88,500 units were sold in the top seven markets in the first quarter of 2019. | Positive |
https://economictimes.indiatimes.com/small-biz/sme-sector/social-networking-app-bumble-to-provide-funds-to-help-small-businesses-counter-covid-19-crisis/articleshow/74911042.cms | In a bid to support small businesses struggling in the midst of the Coronavirus outbreak, social networking app Bumble has announced support towards such businesses which are in dire need during this pandemic.The Bumble Community Grant programme launched by the app will enable support for local businesses across the globe. Approximately 150 small businesses globally will receive a monetary support of up to Rs 1 lakh with markets such as US, UK, Russia, Germany, Australia, India, France, Canada, Mexico, Ireland and New Zealand being the primary recipients.The grant application can be found within the Bumble app across all three modes ( Bumble Date Bumble BFF and Bumble Bizz ). Users of the app can either request a grant for themselves as a small business owner or nominate a small business in their community. Up to five small local businesses can be nominated by users. The application form is available by swiping right within the app till April 5, with businesses by women and non-binary founders being accorded greater priority by Bumble.Creatives designed by the app as a means to bolster support for the community show the spiritedness with messages like ‘We’ll get through this together’ and how tagging one’s favourite pizza places, coffee shops and homegrown brands at this time can make such businesses receive help.The female-first social app was launched in the India market in December 2018. Since then, the app’s user base quadrupled to surpass 3 million users. Globally, the app has a user base of 85 million. This is the first time that the app has launched an initiative in India to offer financial assistance for the several small businesses that have been facing turbulent times since the outbreak.Priti Joshi, Vice President - Strategy, Bumble said that such efforts are in sync with some of their earlier practices. "It’s in our DNA to support the communities where we operate. We’ve long supported women in business and during these times, we wanted to do what we can to support small local businesses across the world. The initial response globally has been positive - and we are very much looking forward to supporting as many small businesses as we can. Now, more than ever, every bit helps," she said.The Bumble Community Grants are one part of the social impact response to the Covid-19 crisis that has caused an uproar in countries all over the world. The social networking app will also be making additional donations to support the global community during this time, including $100,000 to the WHO COVID-19 Solidarity Fund and $100,000 donation to the National Domestic Violence Hotline. | the app has launched a new programme to help small businesses. Approximately 150 small businesses globally will receive a monetary support of up to Rs 1 lakh. the grant application can be found within the app across all three modes. users can either request a grant for themselves as a small business owner or nominate a small business in their community. the app has a user base of 85 million globally. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/impact-investing-boom-gives-funding-jolt-to-1-trillion-asset-manager/articleshow/77189731.cms | Pic: Rekha Unnithan
ESG integrated, where certain sin stocks like tobacco producers and companies with poor ESG scores are screened out
Sustainable funds, which take further steps to refine the investable universe, in some cases by adjusting the portfolios to target a specific key performance indicator such as companies’ carbon footprints
Impact funds, which are designed to have a direct bearing on society and often focus on one of the United Nation’s Sustainable Development Goals
In less than a decade, Rekha Unnithan invested $1 billion in a niche part of the market that was once so small most people on Wall Street hadn’t even heard of it.Unnithan is co-head of impact investing at Nuveen, which oversees more than $1 trillion of assets, including over $5.8 billion in impact strategies. She joined the firm in 2012 to develop a business for investments that can both make money and leave a measurable positive impact on society and the environment. Just last week Nuveen attracted $150 million from institutional investors for a strategy focused on combating income inequality and climate change.Yet for all her success, she cautions against what she sees as reckless growth. That’s a prescient warning as more and more managers pile into her growing enclave.“Impact investing is now all of a sudden having its moment,” said the 38-year-old Unnithan. “It’s cool now and is getting a lot more attention. We must be very mindful though that this is done correctly to actually have impact as opposed to just moving capital around and calling it impact.”Investments that are simultaneously socially and financially rewarding have a natural appeal at a time when the deadly coronavirus pandemic and racial unrest in the U.S. have highlighted inequalities and heightened social tensions. Nuveen’s investments focus on low-income consumers’ access to health care, education and housing, all of which can be prohibitive in a system that disproportionately favors those at the top.Impact funds differ from so-called ESG investing by targeting specific outcomes, such as reduced carbon emissions or disease eradication, rather than simply avoiding companies that pollute or make cigarettes, or seek to persuade corporate executives to become more sustainable by adopting better governance practices.While fund managers have been investing with a social purpose for decades, impact investing has gained in popularity in recent years, with many of the biggest names in finance now boasting impact funds. Germany’s Allianz Global Investors and U.S. private equity giant KKR & Co. are among managers that have recently raised impact funds. Nuveen says it made its first impact investment in the private markets, where most deals take place, in 1989.Impact funds managed $715 billion at the end of December, up from $8 billion in 2012, according to the Global Impact Investing Network, or GIIN, and there are reasons to expect the numbers to to keep going up. The International Finance Corporation , the private-lending arm of the World Bank , last month sized the potential impact market for private assets north of $2 trillion; in public markets, where it is “more difficult to credibly invest for impact,” $10.6 trillion of stocks and bonds have the potential to contribute to positive impact.New York-based Unnithan focuses on impact in private equity and real estate. She said a typical impact investment for Nuveen ranges from $20 million to $60 million.Nuveen wrote a $31 million check to Mumbai-based Aavishkaar Group , which invests in startups and early-stage companies in sectors including financial services and food processing in the emerging markets. It invested $50 million in View Inc., a Milpitas, California-based company that makes glass used for energy-efficient windows that changes its tint depending on the brightness of the sun to reduce glare. (The Teachers Insurance and Annuity Association of America, which owns Nuveen, has said it plans to install View windows in its midtown Manhattan headquarters).Other impact investments include about $30 million of financing for an affordable housing project for low-income seniors in Brooklyn and a $10 million investment in Oakland, California- based Revolution Foods, which provides chef-designed meals using fresh ingredients to schools in underserved communities.Nuveen said in a report detailing its impact-investment activities from 2009 to 2018 that, by its count, the firm has preserved 20,000 affordable housing units across the U.S., allowed 14 million low-income patients to receive medical treatment and helped avoid 1.8 metric tons of carbon dioxide from being emitted.Unnithan declined to provide information on the performance of Nuveen’s impact funds, though she said they have been “in line with expectations on a risk-adjusted basis.” While Unnithan says her funds seek both social and financial rewards, she’s aware of certain misgivings traditional investors have about the sector.“A lot of criticism of impact investing, in particular private equity, is yeah you can invest the money, but are you going to get any return of capital,” Unnithan said.The boom in impact investing -- a term coined by the Rockefeller Foundation -- also reflects the proliferation of ESG investing, meaning a focus on environmental, social and governance issues. For some ESG managers, impact investing is a natural progression of their sustainability work; for others, it’s an opportunity to win more clients by offering differentiated products.Schroders Plc Chief Executive Officer Peter Harrison said on a podcast in March that “ESG won’t exist in five years time -- it’ll be what people are expected to do.” Instead the “puck is going” towards impact, he said, with investors asking what’s the effect of what they’re doing, are they making a positive contribution to the world, and how can they measure it. For firms that successfully offer impact investing, “it becomes genuinely differentiating,” Harrison said.ESG is now a minimum standard for investors, says Emma Hunt, who has run responsible investment teams at St. James’s Place Wealth Management and Hermes Investment Management. Impact, by comparison, is likely to be a “deal maker” since it’s a way of demonstrating positive contribution and offering clients something different, she said.When it comes to selling product, lines can blur.“If I’m being cynical, there’s an element of getting ahead in that everybody is now beginning to use impact instead of ESG, and so it just becomes another codification of public equities to help you sell more products,” said Andrew Parry, head of sustainable investing at London-based Newton, a 45 billion-pound ($57 billion) investment manager owned by BNY Mellon Investment Management.Axa Investment Managers, which oversees 1.2 billion euros ($1.4 billion) across eight impact funds, distinguishes between three types of funds:With such a plethora of investing styles and funds on offer, not to mention a growing catalog of buzzwords, it’s important that the impact market “scale with integrity,” said Unnithan, citing a quote from GIIN’s CEO.“Impact investors will be held to higher standard,” she said. “We have to be even more careful so that we’re not accused, because we’re the do-gooders, right? We can’t get it wrong.” | Rekha unnithan invested $1 billion in a niche part of the market that was once so small most people on Wall Street hadn't even heard of. last week Nuveen attracted $150 million from institutional investors for a strategy focused on combating income inequality and climate change. the firm's investments focus on low-income consumers' access to health care, education and housing. | Positive |
https://www.moneycontrol.com/news/real-estate-2/top-realty-players-may-prefer-reit-route-to-raise-rs-1-5l-cr-4502341.html | As many as 10 commercial real estate developers and operators have the potential to raise as much as Rs 1.5 lakh crore through the real estate investment trust (REIT) route by monetising 184 million sqft space, the report said.
According to a report by the rating agency Crisil, these assets, with annual lease rentals of around Rs 17,000 crore, represent around 30 percent of Grade A properties across major micro-markets in the country.
"Our analysis shows that the top 10 commercial real estate developers and operators in the country can raise as much as Rs 1.5 lakh crore through the REIT route by monetising 184 million sqft space assuming a capitalisation rate of 8.5 percent and stake dilution of 75 percent," the report said.
The agency said the portfolios with annual rentals of over Rs 1,000 crore, translating into a minimum asset valuation of Rs 10,000 crore, can absorb higher transaction costs and comply with regulations, and are more likely to use this option.
"While investor interest in the residential segment is declining fast because of limited property price appreciation and inability to monetise assets, REITs can be a potential investment option, providing assured and ongoing returns.
REITs, which invest primarily in completed, income- yielding real estate assets, are similar to mutual funds, and can be listed and traded on stock exchanges," Crisil said.
Through REITs, private equity firms can divest at the portfolio level instead of individual assets. This would sync better with their typical exit timelines of 7-10 years.
The report said that vacancy levels for Grade A offices are in a low-to-moderate range across cities.
"This will work in favour of commercial lease rentals, which we believe, are likely to escalate at 5-10 per cent per annum over the next 2-3 years," it said.
Crisil, however, noted that given the high level of compliance and stringent regulatory requirements for REITs, developers with smaller commercial portfolios would continue to use lease rental discounting loans, which are accessible at rates as low as nine per cent.
"Furthermore, developers who prefer to retain the capital appreciation opportunity and not dilute their stake, will not prefer the REIT route," the report said. | as many as 10 commercial real estate developers and operators can raise as much as Rs 1.5 lakh crore through the real estate investment trust route. the assets, with annual lease rentals of around Rs 17,000 crore, represent around 30 percent of Grade A properties across major micro-markets in the country. the portfolios with annual rentals of over Rs 1,000 crore, translating into a minimum asset valuation of Rs 10,000 crore, are more likely to use this option. | Positive |
https://www.moneycontrol.com/news/india/sonalika-group-reports-over-18-jump-in-tractor-sales-in-may-5353881.html | Tractor manufacturer Sonalika group on Wednesday reported an 18.6 percent increase in total sales at 9,177 units in May. The company had sold 7,737 units in May 2019, Sonalika group said in a statement.
Sonalika Group Executive Director Raman Mittal said the company was able post healthy growth despite the challenging situation due to a slew of measures taken to enhance the bond with its channel partners, customers and community.
Steps like online disbursal of incentives for dealer sales team, extension of warranty and renewal period, service and spare parts availability with standby tractor for customers, were taken, he said.
On the outlook he said, "with farmer sentiments continuing to remain positive, the industry deliveries are expected to register approximately 10 per cent growth in June 2020.
With the increasing preference of farmers towards mechanization, we are expecting a demand uptick not just in domestic market but also in exports markets." | Sonalika group reports 18.6 percent increase in total sales at 9,177 units in may. the company had sold 7,737 units in may 2019, the company says. steps like online disbursement of incentives for dealer sales team were taken. industry deliveries are expected to register approximately 10 per cent growth in June 2020. a slew of measures were taken to enhance the bond with its channel partners, customers and community. | Positive |
https://www.financialexpress.com/money/5-investment-options-to-secure-your-childs-future/2060821/ | All parents want to offer a secure and quality life to their children, which comes with proper financial planning. Many might be putting money aside for their children’s goals but without making the right investment choices, many miss out on getting the most out of these investments.
Here are some of the best investment options for parents to look at to invest for their child;
Systematic Investment Planning (SIP) – Investing through SIP is suggested because of its simple mode of investment and comes with a longer time-frame of 10 to 15 years. Due to the compounding power, the returns usually beat the inflation rate, hence, the time-frame of investment is more important rather than the invested amount. For instance, assuming 12 per cent annual returns, a monthly investment of Rs 5,000 in mutual funds for 18 years can fetch approximately Rs 19.5 lakh. Investments through SIP in a mutual fund, with a well-diversified portfolio for the long term, can easily make you meet future financial goals such as a child’s higher education or marriage.
Public Provident Fund (PPF) – The Public Provident Fund scheme has always been popular due to its tax benefit, EEE (exempt, exempt, exempt) feature. The investment amount is allowed for tax deduction, while tax is not levied on the returns earned through accumulation, and the total amount withdrawn at maturity is also tax-free. Funds are deposited in PPF accounts for a fixed time period of 15 years, and the interest rate offered is 7.1 per cent currently. Experts suggest as this investment option comes with a long tenure, it can be used to reach goals like a child’s marriage or higher education.
Term Insurance Cover – This will secure the child against any unforeseen event. Having a proper term insurance cover reduces the financial impact on the lives of the dependents in the absence of the bread-earner. Having a term insurance plan could cover all major expenses of a child, such as schooling, higher education, marriage, etc.
Sukanya Samriddhi Yojana (SSY) –This is exclusively for girl children. Parents/guardians can open an SSY account up to the age of 10 years of the child. A minimum investment of Rs 1,000 and maximum Rs 1.5 lakh annual investments can be made for the tenure of 15 years. However, the maturity period for the account would be 21 years from the day of account opening. This offers an attractive interest rate, that is subject to change quarterly. SSY is also eligible for EEE tax exemptions under Section 80C. The current rate of interest offered is 7.6 per cent. Hence, this scheme can be used for a girl child to meet her higher education and marriage needs. The scheme also allows partial withdrawals after the child attains 18 years of age.
Debt Funds – Debt funds are a type of mutual fund that invests in various deposits or bonds. Debt funds are ideal for risk-averse investors as it carries a low risk. The short-term debt funds can deliver up to 6 to 8 per cent annual returns, and are more flexible and allow withdrawal or investments whenever required. Returns from these investments can be taxed at a lower rate if the income from mutual funds is invested for at least 3 years. This investment option can be used for a child’s recurring expenses like school fees, clothing, transport, extra activities, etc. especially due to the liquidity and safety of the deposited amount. | systematic investment planning (SIP) is recommended for children. a monthly investment of Rs 5,000 in mutual funds for 18 years can fetch approximately Rs 19.5 lakh. public provident fund (PPF) is popular due to its tax benefit. Term insurance cover could cover all major expenses of a child. a minimum investment of Rs 1,000 and maximum Rs 1.5 lakh annual investments can be made for the tenure of 15 years. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/buy-or-sell-ideas-from-experts-for-thursday-8-february-2018/articleshow/62829916.cms | NEW DELHI: Domestic equity markets are likely to open in the green on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and global cues.ET Now spoke to various experts and here's what they have to recommend for today's trade: Ashok Leyland is a 'Buy' call with a target price of Rs 140 and a stop loss of Rs 128. Ambuja Cements is a 'Sell' call with a target price of Rs 235 and a stop loss of Rs 255. ICICI Prudential Life Insurance is a 'Buy' call with a target price of Rs 440 and a stop loss of Rs 410. Kaveri Seed Company is a 'Buy' call with a target price of Rs 486 and a stop loss of Rs 454. Jet Airways (India) is a 'Buy' call with a target price of Rs 755 and a stop loss of Rs 730. Apollo Tyres is a 'Buy' call with a target price of Rs 267 and a stop loss of Rs 255.(Views and recommendations given in this section are the analysts' own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.) | domestic equity markets are likely to open in the green on Thursday tracking Nifty futures on the Singapore Stock Exchange (SGX Nifty) and global cues.ET Now spoke to various experts and here's what they have to recommend for today's trade. Ashok Leyland is a 'Buy' call with a target price of Rs 140 and a stop loss of Rs 128. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/garments-/-textiles/indian-chamber-of-commerce-announces-launch-of-live-web-store-exhibition/articleshow/79288738.cms | Kolkata: Indian Chamber of Commerce (ICC) announced the launch of a ' Web Store ' to showcase exquisite collection of Indian textile , handloom, apparel, garments, khadi jute etc. by the MSMEs.The three-day long global online L2G (local to global) exhibition for Indian products under Atma Nirbhar Bharat Campaign is scheduled to begin on December 14, 2020, ICC said in a statement.The 'Web Store' will hold virtual buyer seller meets and is being backed by the Indian Missions in Middle East , Europe, America etc. The event is going to encourage international buyers as well as Indian sellers to take part, interact and expand networks worldwide. The exhibition will mainly focus on business to business dialogues. A dedicated website has also been launched to facilitate the 'Web Store'."With India going for resurgence after the Covid-19 outbreak, ICC has taken the initiative to provide a platform to Indian sellers where they can exhibit their products at a very low price, start a fresh dialogue with their international importers to tap into the international markets and to run the wheels one more time in this pandemic," said Rajeev Singh, director general, ICC.ICC has been the nodal organization for the Ministry of Commerce & Industry, Government of India to promote exports of textile and allied products internationally under the Market Access we are trying to emerge out of this epidemic. Specially where the business has taken an immense hit and the industry has seen its all-time low, Scheme. | the 'Web Store' will hold virtual buyer seller meets. the event is being backed by the Indian Missions in Middle East. a dedicated website has also been launched to facilitate the 'Web Store'. the three-day long global online L2G exhibition for Indian products is scheduled to begin on December 14, 2020. the event is going to encourage international buyers as well as Indian sellers to take part, interact and expand networks worldwide. | Positive |
https://www.financialexpress.com/auto/bike-news/bajaj-auto-medical-relief-fund-coronavirus-pandemic-india-rehabilitate/1910425/ | Bajaj Group has committed this amount for the welfare of the hospitals in and around Pune as well as for rehabilitation of lower-income group people
Bajaj Group has announced that it will donate Rs 100 crore for the havoc caused by the coronavirus pandemic. As is the case, Bajaj has also shut it’s plants in Pune in line with the government’s lockdown orders. Rajiv Bajaj, the CEO of Bajaj Auto, was quoted recently as saying that he will take a salary cut before he let’s go anyone from the company in this situation.
The company has more than 200+ NGOs through which they aim to give away this fund to the needy. The Pune-based company wants to ensure the best services in the health field through. For this, government as well as private hospitals will be identified and the amount given to then for ICU upgradation, isolation units, testing procedures and ventilators.
The daily wage workers who are affected due to the lockdown, will be provided meals, sanitation as well as general healthcare. Bajaj has also observed that most of the city dwellers have retreated to villages. These people used to earn in the city and contribute to the village economy. A significant portion of Bajaj’s support will be towards an economic aid programme in rural areas which includes a direct survival grant, followed by a livelihood intervention using a revolving fund model. The family pays back the loan from the earnings of the livelihood intervention – leading to 80 per cent of funds provided to family being returned to a community fund for further deployment to others in need within the community.
Chairman, Rahul Bajaj, said that, “Once again, we salute all the health care, sanitation, and emergency support workers and local police who are working tirelessly to contain the situation. We continue to be committed towards helping them in every possible manner to fight this pandemic. Together, we will ensure that our communities remain healthy and have all the support to tide through these unprecedented times.” | the company has also shut its plants in Pune in line with the government’s lockdown orders. the company has more than 200+ NGOs through which they aim to give away this fund to the needy. daily wage workers affected due to the lockdown, will be provided meals, sanitation as well as general healthcare. a significant portion of Bajaj’s support will be towards an economic aid programme in rural areas. | Positive |
https://www.businesstoday.in/current/economy-politics/gst-council-working-towards-reducing-gst-rates-mos-finance/story/278711.html | The GST Council is working towards rationalising Goods and Service Tax (GST) rates, Minister of State for Finance Shiv Pratap Shukla said on Thursday.
A big announcement from the government regarding GST is imminent, he said at an event.
Currently, the GST has four rates of 5 per cent, 12 per cent, 18 per cent and 28 per cent.
The all powerful GST Council had, in its meeting in January, decided to slash the GST rate on 54 services and 29 items.
In its November 2017 meeting, the council had removed 178 items from the highest 28 per cent category while cutting tax on all restaurants outside starred-hotels to 5 per cent.
He further said the government is working to promote the growth of SME as it is an important sector to the economy including in output, employment and exports. | the GST Council has cut the rate on 54 services and 29 items. the government is working to promote the growth of SME. the council also cut tax on restaurants outside starred-hotels to 5%. the government is also working to promote the growth of SMEs. he said the government is working to promote the growth of SME. he said the government is working to promote the growth of the sms sector. | Positive |
https://economictimes.indiatimes.com/news/economy/indicators/gdp-growth-to-stay-flat-at-4-5-per-cent-in-october-december-sbi-economists/articleshow/74318773.cms | Samvat 2080 Opens on a Positive Note Samvat 2080 started on a steady note for investors with India’s stock benchmarks gaining over half a per cent in the special 60-minute Muhurat trading session on Sunday evening to mark the start of the traditional Hindu new year.
Insolvency Gets All Personal Now in Boost for Recoveries Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery, potentially multiplying banks’ realizations. | india's stock benchmarks gained over half a per cent in the special 60-minute Muhurat trading session on Sunday evening. the move marks the start of the traditional Hindu new year. bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery. a new ruling by the supreme court will open up a new window of recovery. | Positive |
https://www.moneycontrol.com/news/business/real-estate/regulatory-decisions-that-changed-real-estate-landscape-in-2020-and-what-needs-to-be-done-in-2021-6219751.html | The year 2019 witnessed the launch of the country’s first REIT, opening up new avenues for investing in A-Grade commercial office spaces. The maximum pain was experienced by the residential real estate sector largely due to the NBFC debacle and the resultant liquidity squeeze, and the slow pace of recovery in sales affected by overall economic scenario. The government did come to the sector’s rescue to create an alternative investment fund worth Rs 25,000 crore for last-mile funding of stalled housing projects.
And if the sector was looking forward to stupendous year in 2020, it was not to be. The COVID-19 pandemic and associated lockdown brought real estate activity to a complete standstill. The government took several steps to bring back demand and inject liquidity into the cash-strapped sector.
Here's a look at some key regulatory interventions in 2020 and what remains to be done to boost the real estate sector:
RBI initiatives
> Repo rate cut by 140 bps in 2020
The government, through monetary policy intervention, decreased policy rates by 140 bps in the past 12 months. It ensured banks pass on the falling interest rates to homebuyers. After several years, the interest on housing loans fell below 7 percent which has been a big demand boost for residential sales
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
> Banks permitted to restructure loans of real estate companies at the project levelIn August 2020, RBI further allowed a one-time restructuring of corporate and personal loans (including home loans). This allowed real estate developers including suppliers of raw materials to rest their debt and provide a fresh lease of life to service their debt prudently.
> Specific window provided to push back repaymentDevelopers were provided an additional year to repay lenders which is over and above one year already available, so this will help in the management of cash flows and reduce asset classification stress of Real Estate focused NBFCs. Further, a window of Rs. 50,000 crore under Targeted Long Term Repo Operations (TLTRO) was meant to provide incremental liquidity to NBFCs, MFIs which could be utilised for onward lending to the real estate sector.
> Rs 10,000 crore allotted to National Housing BankIn August, the central bank decided to allot Rs 10,000 crore to National Housing Bank, which was meant to be a big relief for the real estate sector reeling under a liquidity crisis. It was meant to provide capital to housing finance companies and eventually provide major relief to developers battling liquidity issues in COVID-19 times.
Government initiatives
> Additional outlay of Rs 18,000 crore announced for Prime Minister Awas Yojana (PMAY Urban)
This was meant to support the objective of Housing for All by 2022. The additional outlay was over and above the Rs 8,000 crore already spent this year.
> Differential between ready reckoner (circle rates) and market value for tax exemption doubled to 20 percentThis Diwali, the government announced an increase in the differential from 10 per cent to 20 per cent under Section 43CA of the Income Tax Act on sale of residential units valued at up to Rs 2 crore. Consequently, the buyers will be entitled to relief of up to 20 per cent under Section 56(2)(x) of the Act. The initiative is expected to benefit developers who are hardpressed to offload unsold inventories, especially in those locations where the current market prices are below the circle rate – a rate at which different levies such as stamp duty, registration fee and other taxes are computed and paid.
This limited period of relaxation will end on June 30, 2021.
> Investments of over Rs 13,200 crore approved under Swamih Fund and money deployed in 36 projectsThis comes in as a relief to 87,000 homebuyers. The government’s Special Window for Affordable and Mid-Income Housing (SWAMIH) fund was set up in November last year to provide last-mile funding for stalled real estate projects by the government. SBI CAP is the fund manager of SWAMIH Fund.
> RERA timelines extended due to COVID-19In May, government issues advisory asking real-estate regulators in states and union territories to extend by at least six months the deadline for completion of projects in the face of the coronavirus outbreak. The deadline for RERA projects that were registered or were to be completed by or on March 25 has been extended.
> Stamp duty on housing units cut to 2 percent from 5 percent by Maharashtra governmentThe cut is in effect until December 31, 2020, to boost the stagnant real estate market, hit by COVID-19. Stamp duty from January 1, 2021, until March 31, 2021, will be 3 percent. This has started showing results. Home sales volume in Mumbai stood at 9,301 units in November 2020 registering a whopping 67 percent year-on-year (YoY) rise over same month last year, boosted by stamp duty cut and festive period of Diwali. At 9,301 units registered in November 2020, the residential sector of Mumbai recorded the highest ever registrations in the month of November over the last nine years.
> Rental accommodation scheme announced for migrant workers and urban poorThis is meant to increase the availability of organised housing facilities. This will lead to decongestion of urban spaces by reducing unauthorised occupancy and encroachment and thus, facilitate better town planning. As many as 24 states and Union Territories have signed agreements with the central government for implementation of the affordable rental housing complexes (ARHC) scheme mooted by the Ministry of Housing and Urban Affairs during the novel coronavirus. The government is extending several incentives including free Floor Space Index (FSI), concessional project finance, free of cost trunk infrastructure facilities, among others to push participation in ARHC scheme for urban poor and migrants
> Rules that allow outsiders to buy urban, or non-agricultural land, in Jammu and Kashmir notifiedEarlier, only ‘permanent’ residents and those with domicile certificates were permitted to buy such land. This will pave the way for any Indian citizen to buy land and property in Jammu and Kashmir. Outsiders will now be able to purchase urban, or non-agricultural land. Contract farming will also be permitted on agricultural land.
So, what more can be done now?
Real estate experts say most of these government and RBI measures announced this year were largely geared towards tackling supply and liquidity concerns. What the sector needs are measures that will bolster demand.
> Swamih Fund needs more capital allocationTo enhance liquidity, funds like Swamih will need to be continue and more capital is required to be allocated and/ or more such platforms should be formed to ensure larger number of Projects across Tier II and III towns are benefitted, says Piyush Gupta, managing director, Capital Markets & Investment Services at Colliers International India.
> External commercial borrowings (ECBs) with necessary checks needs to be permittedContinuation of external commercial borrowings (ECB) proceeds as a permitted end use for affordable housing projects under the Current ECB Framework is a step in the right direction as this would encourage ECB inflows in the affordable housing sector. However, permitting utilisation of ECB proceeds for acquisition of land parcels for the development of affordable housing projects would really provide low cost liquidity to the business, says Gupta.
There is a need for going beyond affordable housing projects to provide flexibility to large projects in cities which are starved of liquidity.
> Selective subvention schemes need to be allowed
Some of the measures the government should take include allowing selective subvention schemes for developers with good track record, says Anuj Puri, chairman, Anarock Property.
> GST needs to be waived off temporarily
Waiver of GST on homes for certain period may attract buyers as it will reduce overall property cost by at least 5% for premium homes priced above Rs 45 lakh, he says.
> Stamp duty needs to be cut in other statesReduction in ready reckoner rates and stamp duty (just like in Maharashtra) may further attract prospective buyers.
> Tax benefits for homebuyers need to be increasedThe government should also consider increasing tax benefits to homebuyers and also extend income limit under PMAY to boost demand, says Gupta.
The government should consider increasing the deduction for housing loan. Currently this stands at Rs. 200,000 per annum. This should be increased up to Rs. 400,000 for affordable apartments.
It may also look at removing the cap for claiming losses under House Property. The set-off of loss benefit currently has been capped at Rs. 200,000. The government could consider removing the cap as earlier to incentivise buyers to purchase more than one apartment and if required borrow and purchase, adds Gupta.
The government should consider extending the benefit under section 80EEA to avail additional Rs 150,000 interest deduction on home loans to existing homebuyers who have already availed home loans; first time homebuyers to include mid-segment as well and create a separate provision for deduction of 'principal repayment' on home loans, opines Samantak Das, Chief Economist and Head of Research & REIS India, JLL.
> Holding period for REIT needs to be cut; policy benefits must be provided to emerging sectorsThe government could also look at reducing the holding period of REITs for long-term capital gains. It should also allow 100 percent FDI in completed residential real estate projects through the automatic route, he says.
According to Gupta, among fiscal and policy level benefits to sunrise sector, all emerging sectors such as Data Centers which has tremendous potential for attracting investments could be given fiscal benefits like coming up with economic zones which could provide Income Tax, GST holidays. This could be in line with earlier SEZ or STPI which helped investments in office businesses over the past decade. | the year 2019 witnessed the launch of the country’s first REIT. the government created an alternative investment fund worth Rs 25,000 crore. the government took several steps to bring back demand and inject liquidity into the cash-strapped sector. the good news is that SARS-CoV-2 virus has been fairly stable. the good news is that a vaccine based on the whole virus has been fairly stable, which increases the viability of a vaccine. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/it-will-take-a-couple-of-years-for-market-to-bottom-not-1-2-months-daniel-niles/articleshow/75048190.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Marketing Officer Programme Visit IIM Lucknow IIML Chief Executive Officer Programme Visit IIM Kozhikode IIMK Chief Product Officer Programme Visit
There are a couple of things. We were worried about the coronavirus back in January and in late January, we started selling the stocks that we owned, either hedging them such as Disney or we got very negative on some like Apple which you can see on my twitter handle @DanielTNiles. On February 10, we had started to short Apple because we thought there was a virus risk from China. People just chose to ignore it which surprised me and did not make much sense to me. We tried to position ourselves appropriately because we thought eventually the US market would start reacting to it as the virus continued to spread. That, in fact, is what happened and that is how we saw the data.It is more important than ever because of the way the map works. We have talked about this on our website. Danniles.com is the name of our website and there we talk about the fact that if you lose 50 per cent of your assets, you have to be up 100 per cent to get even. It is not being up 50 per cent. That is really the key to making money over the long term.If you look at even the most recent correction in S&P500, you are down 34 per cent from peak to trough but you have to be up 52 per cent to get just even. From that angle, trying to make sure that you do not lose a lot of money is certainly the key to making money over a long period of time.We really try to focus very hard on not losing money and that is why we cannot talk about specific performance due to our funds private registration. But for March, we made money and for the year, we made money through the end of March as well.The way we would be able to do that is when the market was down 34 per cent. We were not down very much at all from the highs. That is how we are able to do well and managing the risk on the downside.We are seeing a lot of interest. We have decided to open a second hedge fund which does not meet the government required income and wealth criteria for being a hedge fund. Everybody deserves the chance to protect their investments when markets get bad and this is only going to be open for about 99 investors and we will see if there is demand.The issue with trying to buy into the market right now is that you are seeing a bear market rally. In other words, when the markets go down, the big moves higher but then eventually they go back down again. You see this very consistently. If you go back to the great depression, there were eight rallies in the S&P500. If you look at the nine prior times, S&P has come down about 30% or greater. The rallies averaged 11% in the S&P 500 while you lost about 41%. This type of move you have seen over the last two days when the market has been up high single digit.In three days, S&P went up 18%. That is typical. What people should focus on before they decide they want to invest in the US markets is wait for earnings to come out. We were in an 11-year expansion, the longest expansion in history. The stocks are still very expensive and that is why I think it is prudent to wait. The companies are poor.Mark Twain has a great quote which is “history does not always repeat itself but it often does rhyme.” If you look back at prior recessions and how long it took for stocks to find their ultimate bottom, if you look at the nine prior times when the market went down about 30% or more, it took about 23 months to find the ultimate bottom in stock prices. That is almost two years.So, it will take a couple of years. It is not going to take one month. When you have the dual shock of oil prices dropping a lot as well as the virus pandemic, it is going to change things permanently in terms of supply chains and companies.A lot of companies are going to go out of business. During this time, 6.6 million people filed for initial jobless claims last week, 3.3 million the week before. With that type of job loss plus valuations still being very high, market cap to GDP is still around 1.1 times. And that is for the entire US stock market where the average since 1970 is 0.8. That is all a lot lower than where we are today.When you look at all of those things together, one should think of one to two years minimum, not one month. We figured out how bad this is going to be. | a second hedge fund is being launched in the country to help people with disabilities. the fund is a diversified hedge fund that aims to help people with disabilities. the aim is to help people with disabilities and those with disabilities make a living. the aim is to help people with disabilities and those with disabilities make a living. a new book, "the iii - a new generation of leaders," will be published in june. | Positive |
https://www.moneycontrol.com/news/business/markets/a-morning-walk-down-dalal-street-market-teeming-with-positive-sentiment-but-consolidation-likely-in-coming-sessions-4466551.html | live bse live
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Key benchmark indices surged for the second straight session on September 23 as investor risk appetite was rekindled after Finance Minister Nirmala Sitharaman delivered a cut in corporate tax rates which would boost corporate earnings significantly.
Both key indices, Sensex and Nifty jumped over 8 percent in the last two sessions.
Strong gains of the last two sessions have made investors richer by Rs 10.35 lakh crore as the cumulative market capitalisation of BSE listed firms jumped to Rs 1,48,89,652.44 crore from Rs 1,38,54,439.41 crore on September 19. On September 23 alone, investors' wealth increased by Rs 3.52 lakh crore.
The recent measures by the government, including the reduction in corporate tax rate, the abolition of enhanced tax surcharge and updated norms of FDI and CSR spending, are seen as long-term positives by most foreign brokerages.
Morgan Stanley has raised the target for Sensex to 45,000 by June 2020, saying that it sees green shoots in the offing.
Citi has raised March 2020 target for Sensex to 40,500 from 39,000. Goldman Sachs has raised Nifty50 target to 13,000 from 12,500 while JP Morgan has raised Nifty's target to 12,200. Nomura has also raised March 2020 Nifty target to 12,545.
While the market is riding the wave of positivity, analysts state that there is a risk of consolidation as well.
"The Indian market is trading near peak valuations so we would remain cautious on the markets and expect it to consolidate in the near term. However, the recent announcements made by the FM are definitely positive for the Indian economy from a long-term perspective. Hence, investors should focus on accumulating fundamentally sound stocks," said Ajit Mishra, Vice President - Research at Religare Broking.
The Indian rupee erased the day's losses to settle almost flat at 70.93 against the US dollar on September 23.
On the institutional front, foreign institutional investors (FIIs) bought shares worth Rs 2,684.05 crore, while domestic institutional investors (DIIs) too bought Rs 291.95 crore worth of shares in the Indian equity market on September 23, as per provisional data available on the NSE.
Big News: Tax cut gives a new lease of life to banking, financials
Banking and financials emerged as the biggest sectoral gainers in two consecutive sessions ending September 23 as the sector could benefit the most from corporate tax cuts.
"This clearly benefits domestic banks, NBFCs and rating agencies. Banks in the higher tax bracket, such as HDFC Bank, SBI, Kotak Mahindra Bank, DCB Bank, Federal Bank, and RBL Bank, will gain due to the move," Joindre Capital Services said.
Prabhudas Lilladher retained its overweight rating on NBFC and increased the weightage on Bajaj Finance.
"Bajaj Finance is expected to be one of the key beneficiaries of the anticipated demand recovery in the festive season, bountiful monsoons and improving operating leverage. BAF continues to maintain an edge over others owing to less than 2 percent GNPA and 65-70 percent provision coverage ratio across cycles, 40 percent positive ALM gap in short maturity buckets and diversified liability mix," the brokerage explained.
Technical View:
Nifty formed a bullish candle which resembles a Spinning Top kind of pattern on daily charts on September 23 as the difference between opening and closing price was only one-fifth of today's gains.
Spinning top is often regarded as a neutral pattern that suggests indecisiveness in the market. It can be formed in an uptrend as well as a downtrend.
Experts feel the consolidation is likely in coming sessions especially after solid rally was seen in the previous two consecutive sessions, hence traders are advised to avoid taking fresh longs.
Three levels of Nifty:
Intraday low- 11,471.3 | Intraday high- 11,694.8 | 200-DMA- 11,234
Max Call OI: 11,600, 11,700
Max Put OI: 11,500, 11,400
Stocks in news:
Wipro: The company collaborated with FEBRABAN to develop noomis, an online platform for the financial services industry in Brazil.
Manappuram Finance: The board of the company has approved raising upto Rs 465 crore via NCDs.
Indosolar: Promoter IDBI Capital has cut stake to 0.88 percent from 2.88 percent.
NCC: Promoter released a pledge on 1 lakh shares (0.02 percent equity) on September 17.
Zensar Technologies: The company has expanded operations in Cape Town, South Africa.
Technical Recommendations:
We spoke to Rajesh Palviya, Head- Technical & Derivatives Research at Axis Securities and here’s what he has to recommend:
Siemens: Buy | LTP: Rs 1,445.10 | Target: Rs 1,490-1,530 | Stop Loss: Rs 1,350
State Bank of India: Buy | LTP: Rs 313.60 | Target: Rs 335-345 | Stop Loss: Rs 295
IGL: Buy | LTP: Rs 354.80 | Target: Rs 385-395 | Stop loss: Rs 335
(Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.) | both key benchmark indices, Sensex and Nifty jumped over 8 percent in the last two sessions. strong gains of the last two sessions have made investors richer by Rs 10.35 lakh crore. the cumulative market capitalisation of BSE listed firms jumped to Rs 1,48,89,652.44 crore from Rs 1,38,54,439.41 crore on September 19. | Positive |
https://www.moneycontrol.com/news/business/primary-markets-emerge-as-major-fund-raising-source-for-realty-firms-4180191.html | Real estate developers in India raised more funds from primary markets in the first half of 2019 than they did in a decade.
As of June, the developers raised about Rs 10,023 crore from the primary markets through two qualified institutional placements (QIPs) and a real estate investment trust (REIT) initial public offering (IPO), marking an eightfold increase over 2018 and the most in the past decade, according Prime Database.
“Equity market instruments got more attention from large real estate companies in the last two years as investors showed a strong preference for organized branded real estate developers with low debt levels and a positive track record of execution," said Subhrajit Roy, executive director and head, equity capital market origination at Kotak Investment Banking.
“Besides, commercial real estate has seen a strong growth trend contributing to the investors’ interest in subscribing to the recent QIPs issued by realty firms, especially those with a presence in Delhi NCR, Mumbai, and Bengaluru," he said.
Real estate companies that had so far fulfilled most of their funding requirements through non-banking financial companies (NBFCs) and secondary markets are now finding primary markets an attractive route for raising capital with Indian corporate bond markets facing their worst slowdown in a decade. The pace of growth for Indian bond markets had been slowing since 2017 and marked its lowest rate in more than a decade in May at 9.7%, Bloomberg reported in June citing its economics index.
Investor sentiment in the secondary market, already shaken since the Infrastructure Leasing and Financial Services (IL&FS) crisis in September 2018, soured further after mortgage lender, Dewan Housing Finance Corp. Ltd delayed interest payments on its outstanding bonds. This has led to a liquidity crunch making it expensive for NBFCs and, in turn, real estate companies to borrow funds from secondary markets.
However, even as equity investments in real estate companies are peaking, the interest is restricted to large firms with low debt levels.
“It was after the implementation of the Real Estate (Regulation and Development) Act (RERA) that investors’ faith returned in large companies with strong balance sheets, but there are still a lot of developers in the market that remain cash strapped and are finding it tough to raise funds. That itself indicates that there will be major consolidation in the sector," said Girish Nadkarni, managing director at Motilal Oswal Investment Banking.
“What we are also seeing is that promoters of large firms are being able to make the most of equity markets as stock prices have recovered and valuations have become reasonably better, making it easier for them to raise funds via equity capital markets," he said.
In March, Blackstone-backed Embassy Office Parks REIT raised Rs 4,750 crore through India’s first REIT, while DLF raised around Rs 3,200 crore through a QIP, followed by another QIP by Godrej Properties that raised Rs 2,100 crore from the primary markets.
Such issuances, according to Salil Pitale, joint managing director and co-chief executive officer at Axis Capital, will only increase as the recent QIPs by big brands such as DLF and Godrej Properties will give a positive fillip to good brands within the real estate space to tap the primary markets.
Agreeing with Pitale, Nadkarni at Motilal Oswal said “As investors make money on QIPs of large real estate firms and their risk appetite increases, more mid-market players with strong balance sheets, along with some of those who want to raise funds to refinance their debt requirements, will also hit the primary markets." | developers raised about Rs 10,023 crore from primary markets in the first half of 2019. this is an eightfold increase over 2018 and the most in the past decade. the pace of growth for Indian bond markets had been slowing since 2017. investors are finding primary markets an attractive route for raising capital. the pace of growth for Indian bond markets had been slowing since 2017. | Positive |
https://www.businesstoday.in/current/corporate/sun-rises-for-itc-aggressive-acquisitions/story/404906.html | Call it a sunrise at night if you will, ITC's note to bourses on Sunday night that it has entered into a Share Purchase Agreement (SPA) to acquire 100 per cent of the equity share capital of Sunrise Foods Private Limited (SFPL), a company primarily engaged in the business of spices under the trademark 'Sunrise', is more than just another deal by the FMCG giant with interests across the board from tobacco to hotels.
Biggest deal
Industry insiders say this is ITC's biggest deal in the past two decades. While the size of the deal is not known, estimates doing the round suggest it is at least 7 to 8 times the size of deals ITC has carried out in the past.
The estimates are based on the fact that acquisitions upto five times the turnover of the acquired company are not unusual in FMCG space.
ALSO READ: ITC to take over spices company Sunrise Foods
Sachin Bobade, vice president, Dolat Capital, who has looked at the Indian FMCG sector for many years, says "going by some of the past deals in the FMCG space such as Emami acquiring Kesh King brand of hair care product or of Marico acquiring Paras, deals have been at around 5.5 times the turnover of the acquired company. Infact, it is usually between 3 to 5.5 times the turnover and therefore this deal by ITC, which seems at between 3 to 4 times the acquired company turnover, seems reasonable."
Some of ITC's past deals include acquisition of Savlon and B Natural in 2015 and floor cleaner Nimyle in 2018.
Inorganic growth
ITC has set a target of Rs 1 lakh crore turnover by 2030 for its non-cigarettes FMCG business. The company has ramped up trade marketing and distribution infrastructure, including setting up warehouses and factories. Twenty such facilities are spread across equal number of states.
Sunrise deal is indicative of the company's preparedness for inorganic growth. Analysts feel ITC is unlikely to rest with just one deal and will aim to acquire other traditional family-owned brands too.
ALSO READ: Govt plans stake sale worth Rs 22,000 crore in ITC, Axis Bank: report
High Growth Segment
ITC looks to tap into spices - a high growth segment - with the Sunrise deal. Spices are key ingredient in Indian food and consumers prefer branded and well-packaged products. In a post-COVID world, till food service industry picks up, consumption of food at home will rise, which means greater demand for spices.
Spices business in India is highly multi-locational with preferences changing every few hundred kilometres. Therefore, it makes sense to acquire trusted and popular brands rather than build these up organically.
Clear upsides
ITC's media statement talks of the upside. It says, "Sunrise is a clear market leader in eastern India in the fast-growing Spices category with a rich heritage and brand legacy of over 70 years. Over the years, the brand has built a loyal consumer franchise, anchored on a differentiated product portfolio tailored to regional tastes and preferences, both in the basic and blended spice segments. The proposed acquisition is aligned with ITC's strategy to rapidly scale up its FMCG businesses in a profitable manner, leveraging its institutional strengths viz. deep consumer insight, a deep and wide distribution network, agri-commodity sourcing expertise, cuisine knowledge, strong rural linkages and packaging know-how."
ALSO READ: Coronavirus: ITC ramps up production to meet demand for sanitisers
ITC's Aashirvaad range of spices, it says, is already a market leader in Telangana and Andhra Pradesh and the company is one of India's leading producers and exporters of high-quality spices.The proposed acquisition, the ITC note says, "will augment the company's product portfolio and is aligned to ITC's aspiration to significantly scale up its Spices business and expand its footprint across the country. The deep consumer connect and distribution strength of SFPL in the focus markets, together with synergies arising out of the sourcing and supply chain capabilities of the company's agri business and its pan-India distribution network, will provide significant value creation opportunities for the company."
Lockdown Deal
The company is proud that the deal is done in the middle of a lockdown. The note mentions the deal shows "the company's agility and resilience in dealing with the new normal."
ALSO READ: FMCG firms to convert 10 lakh kiranas into coronavirus-free 'Suraksha' stores | ITC has entered into a Share Purchase Agreement to acquire 100 per cent of the equity share capital of Sunrise Foods Private Limited (SFPL) the deal is ITC's biggest deal in the past two decades. estimates do the round suggest it is at least 7 to 8 times the size of deals ITC has carried out in the past. some of ITC's past deals include acquisition of Savlon and B Natural in 2015 and floor cleaner Nimyle in 2018. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/small-and-midcap-is-the-place-to-be-in-right-now-nilesh-shah/articleshow/70085385.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website Indian School of Business ISB Chief Technology Officer Visit IIM Kozhikode IIMK Chief Product Officer Programme Visit IIM Lucknow IIML Chief Executive Officer Programme Visit
If we pursue the path of Emerging Market Bond Index and strategic divestment. the next five years growth is almost guaranteed., says Nilesh Shah , MD, Kotak AMC . Excerpts from interview with ETNOW.There are two things this Budget can do; on the expenditure side there is not much space because salaries, pension, interest, defence and subsidies are fixed, on the revenue side raising tax compliance is also difficult, it cannot create a miracle overnight. So we have to raise non tax revenue to fund infrastructure investment without crowding out private investment. How do I raise this money? Either I can raise by debt or I can raise by equity. If I want to raise debt the domestic debt market is not deep enough to fund government, it will end up crowding out private sector investment, it will end up raising interest rate. So, I have to copy what China has done; with $3 trillion reserve in their kitty China has gone into Emerging Market Bond Index which will bring them hundreds of billions of dollars. We need to create a roadmap in this budget to be part of Emerging Market Bond Index which will bring $7500 billion capital into India. With that capital government can build infrastructure which will revive investment, which will push growth and at the same time leave space for private sector to carry out investment.If we do not want to pursue that path then there is equity path. Out of this budget, we subsidise public sector enterprises which is incredible talent, incredible assets but a macroeconomic environment which is not supportive for growth. The decision making is compromised. Give that in the hands of private entrepreneurs and let them contribute to the budget rather than receiving from the budget. If we pursue the path of Emerging Market Bond Index and strategic divestment. the next five years growth is almost guaranteed.From a market point of view, it is always the long-term growth potential created from the budget which is critical. We have seen this volatility coming down because now with GST Council budget does not fix rates, earlier it was a trade to short tobacco stocks, short sin stocks ahead of budget but now with GST those things are not possible in the budget, in fact in this Budget, we are seeing a scenario where the volatility has actually dropped, it has not gone up it has come down. It shows that now budget is for the long term not for short term.The focus of this government seems to be on water. In Man Ki Baat pradhan mantri talked about water. We have seen crisis in Chennai and in many parts of the country. Definitely, it is time to keep a watch on water related stocks but do remember that in the listed space, there are very few opportunities.Largecaps are up 10% from the last budget, midcaps are down about 18% and small caps are down about 28%. Outside of budget also RBI has now started pumping liquidity, they have started cutting rates and they will start focussing on transmission if that reserve gets transferred from RBI to PSU banks. In that conducive environment it looks like small and midcaps have a better chance of bouncing back compared to large caps.I am quite hopeful about that one. Already expectations are very low for small and midcaps. In 2017, smallcaps were up 50% and for the January 18 budget, there was very high valuation. In July 2019, valuations are down, expectations are low, more importantly, the ecosystem is turning conducive for small and midcaps. Their divergence with large and super large companies is at one of the highest level, valuations are low, liquidity is improving, rates are being cut, transmission can improve. Altogether, small and midcap is the place to be in right now.It has to come at some point of time. Now whether this budget, next budget who knows? People want a roadmap and adherence to that road map rather than immediate delivery. Everyone realises the compulsiona in India’s fiscal situation, but if we create a road map and adhere to it I think that is more than sufficient.Undoubtedly this is the biggest achievement for NDA government where from double digit inflation we have come to single digit inflation and slowly it is percolating into inflationary expectations. There was a time when a 10% salary increase was considered normal and today with inflation coming down, those numbers will start falling towards 4-5%.So effectively we are bringing down inflationary expectations. This will open up room on the monetary side where rates can be cut further. This will make our manufacturers competitive. Today when a small and medium entrepreneur competes with someone in let us say Thailand, Thailand’s corporate borrowing rate will be 3-4%, in India it is 13-14%, that 10% interest burden kills us. Effectively, we will see inflation coming down, creating monetary space with which we will be able to become more competitive with the rest of the world.Market will focus on fundamentals with budget, without budget.Fundamentals are not looking great but there is always hope and market always tries to discount future. So we have gone through a transition where liquidity was tight, rates were high these were being used to control inflation, improve fiscal balance. Valuation was also high in Jan 2018. Today we have a scenario where compared to last year’s budget large caps are up 10% but small caps are down 28%. So valuations are reasonable.Liquidity is improving, rates are being cut and PSU banks could be capitalised with reserve transfer or otherwise. There could be pick up in the economic activity. Two worries which we had on the side oil and monsoon. Now monsoon seems to be progressing well and if July and August rains are good one could see pick up in the rural economy despite US-Iran skirmish oil has remained on the softer side and let us assume that oil remain soft automatically economy benefits. The small and midcaps will start looking at the hope, small and midcaps will discount the recovery and that should be a good space to be in at this point of time.All three.If you are conservative guy, you can start in multicaps; if you are aggressive guy, put it into small and midcap.There are different aspects to the stress in the financial sector; in PSU banks, it is lack of availability of capital. Now there is a reasonable hope that it will be met out of RBI’s excess reserve via Dr Bimal Jalan Committee report. Now since we do not know what that report will contain it is unfair to assume that in the budget there could be provision for capitalising PSU banks.The second is the NBFC scenario where clearly there are some NBFCs which are coming under pressure. Now, one is ALM mismatch which can be managed by RBI by providing liquidity, if there is a need to create a special window for NBFCs but the second is the underlying stress of the NBFC sector which is real estate sector. So my feeling is that in this budget there could be some provisions.One provision which I will recommend for government to consider is, in the past if a person bought second, house he was able to get deduction of interest paid from his income and that pushed many salaried people, many businessmen to go for second house. Now that exemption was taken away and that has taken away the demand as well. Kindly re-introduce that section will immediately create demand for real estate sector.As the real estate starts moving, NBFC ka adha disappear ho jayega. So this is how you will have to go to root cause analysis to solve the problem. | if we pursue the path of Emerging Market Bond Index and strategic divestment, the next five years growth is almost guaranteed. from a market point of view, it is always the long-term growth potential created from the budget which is critical. if we pursue the path of Emerging Market Bond Index and strategic divestment, the next five years growth is almost guaranteed. | Positive |
https://www.moneycontrol.com/news/business/markets/we-are-building-in-a-u-shaped-recovery-for-economy-equity-markets-prateek-pant-4998641.html | We are building in a U-shaped recovery and not a V-shaped recovery for the economy and the equity market in the coming quarters, Prateek Pant, Co-Founder & Head of Products & Solutions, Sanctum Wealth Management, said in an interview with Moneycontrol’s Kshitij Anand.
Edited excerpt:
Q) What is your take on GDP data for the December quarter?
A) The GDP growth for December quarter at 4.7 percent on a YoY basis was more or less in line with market expectations. The government has been taking many small steps to boost growth in the economy.
The cut in the corporate tax rate last year was a major step that should have positive benefits over the long term. The Budget also continued with reform push that should prove to be growth accretive in the long-term, however, it didn’t have much for the immediate term.
Most of the measures by the government will have a positive impact in the longer-term, but might not cause a V-shaped recovery in the economy.
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We are building in a U-shaped recovery and not a V-shaped recovery for the economy and the equity markets in the coming quarters.
Q) Coronavirus has become a ‘worry’ for markets from a ‘concern’. What is the way ahead for Indian markets?
A) The impact of coronavirus is very uncertain and one would have to see the extent of its spread in the coming weeks. However, global supply chain, trade, and tourism is likely to be greatly impacted in a world that is as globalised and connected as it is today.
Indian markets could remain volatile until coronavirus is either contained or a cure to the same is invented.
Q) FIIs have pulled out more than Rs 12,000 cr from Indian market in February from the cash market segment. Do you think the selloff could intensify if the situation with respect to coronavirus escalates?
A) FIIs pulled out money after the Budget on Feb 1 as it did not have much for the immediate term, unlike market expectations. This was followed by a lull in FII activity.
In the last few days, the FII selling has again intensified as global risk-off sentiments have increased led by worries around global spread of coronavirus and its impact on economy.
If the situation with respect to coronavirus escalates global risk-off sentiment could worsen. India is unlikely to be spared in a global sell-off environment.
Q) According to a Reuters poll conducted recently, experts have trimmed their target for Sensex, and Nifty for December 2020 on account of global cues. What is your target for the year?
A) Heading into 2020 we were turning optimistic on Indian equities. It seemed like the worst of the macrocycle was getting behind us with improved print on IIP, PMI, Auto sales, etc.
The noise around weak business traction was also reducing incrementally. However, with the situation related to coronavirus worsening, the environment has become more uncertain and one would have to assess the impact on earnings in the coming weeks. If the situations worsen further we would have to taper our expectations.
Q) It looks like money has started moving from equities to safe havens like gold, and other fixed-income products. What do you suggest?
A) We have been suggesting exposure to gold for some time now given it generally acts as a hedge against global uncertainty. Despite the recent run-up, in the current situations, we continue to be overweight gold in our asset allocation recommendations to the client.
We think bond yields could continue to remain low given the muted growth expectations and scare with respect to coronavirus. However, whether equities underperformance fixed income this year would depend on how the situation with coronavirus pans out in the coming months.
Q) What is your take on the SBI Card? It is one of the largest IPO on the D-Street. Should one invest in the IPO or stay with SBI?
A) India’s credit card market remains significantly under-penetrated. This leaves substantial room for growth, along with a superior return on equity. SBI card is amongst leaders in terms of credit card issuers.
While the issue is at a valuations premium, the size of the market opportunity is such that long term investors will be willing to accept the premium valuations in our view.
Q) How should investors play the massive fall which we have seen in the last 15 days to a month? This is time to create long term wealth for investors? What does history suggest?
A) The equity market had not reacted to the uncertainty brought by coronavirus even as other asset classes like gold had reacted to the same.
Hence, the correction in the last few days is mostly equity markets finally waking up to the challenges at hand. As said earlier the impact of coronavirus on the global economy is still uncertain and tough to take a call right now. However, any correction is always a good opportunity for long term investors to build possible.
Q) What should be the investment strategy of investors with respect to Mutual Funds? This is a time usually when investors stop their SIP as nervousness clouds investors’ minds.
A) If the objective of SIP investment is to create a large corpus over a longer period of time, any market volatility always helps in the averaging the cost of acquisitions.
The important consideration should be to choose the right strategies with managers who have track records across market cycles.
Q) Any value buy with respect to stocks or sectors which are looking attractive?
A) We believe that any dip should be used as an opportunity to buy domestic structural growth sectors. One can look at Insurance as a sector, especially life insurance.
Other theme we like is the private corporate banks which are seeing improvement in their credit cycle and lastly, one can start taking selective exposure to domestic quality auto companies which has also felt the brunt in the last couple of weeks.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | government has been taking many small steps to boost growth in the economy. cut in corporate tax rate last year was a major step that should have positive benefits. a vaccine works by mimicking a natural infection. a vaccine helps quickly build herd immunity to put an end to the pandemic. a vaccine works by mimicking a natural infection. | Positive |
https://economictimes.indiatimes.com/jobs/online-hiring-activity-sees-12-pc-rise-in-march-report/articleshow/63713632.cms | Online recruitment activity registered 12 per cent increase in March with demand for finance and healthcare professionals witnessing a significant uptrend, says a report.The Monster Employment Index India stood at 292 in March as compared to 261 in the year-ago month."The economic reforms by the government seem to have started impacting the economy in a positive manner and the online recruitment activity around key sectors such as production and manufacturing can possibly be attributed to it," said Abhijeet Mukherjee, CEO, Monster.com- APAC & Gulf.The report noted that finance and accounts, and healthcare professionals saw highest growth year-on-year at 32 per cent and 31 per cent, respectively."The demand for professionals in finance & accounts can also be a resultant of the massive opportunity created by GST reforms for people with know-how of the new tax regime," Mukherjee added.He further said the digital revolution is mirroring the substantial growth across sectors, thereby escalating opportunities and reshaping the fundamental nature of work and iterating the constant need to upskill.During the reported month, e-recruitment activity exceeded the year-ago level in 11 of the 13 cities monitored by the Index with Kolkata topping the chart (up 33 per cent ) followed by Chandigarh (up 29 per cent.Delhi-NCR and Bengaluru witnessed a decline, the report said. | online recruitment activity registered 12 per cent increase in march. demand for finance and healthcare professionals witnessing a significant uptrend. the report noted that finance and accounts, and healthcare professionals saw highest growth year-on-year at 32 per cent and 31 per cent, respectively. e-recruitment activity exceeded the year-ago level in 11 of the 13 cities monitored by the Index. | Positive |
https://www.moneycontrol.com/news/business/indian-economy-will-continue-to-have-v-shaped-recovery-finmin-2524225.html | India Economy
The 7.2 percent expansion in the economy during October-December quarter has put the country in one of the highest growth bracket in the world and recovery will continue to be sharp going ahead, Economic Affairs Secretary Subhash Chandra Garg said today.
The third quarter growth of 7.2 percent was highest in five quarters. The previous high was recorded at 7.5 percent in the July-September quarter of 2016-17.
In the first quarter of the current fiscal, the GDP grew at 5.7 percent, while the second quarter growth stood at 6.5 percent.
"We have said this earlier that the first quarter (of FY18) was where we bottomed out, and we would see a very strong V-shaped recovery. The growth in the second and third quarter brings evidence to that," Garg told reporters on the sidelines of an IVCA event here.
"The third quarter grew at 7.2 percent and it puts us in the highest growth bracket in the world. I see no reason why that V-shaped recovery should not continue henceforth. I can't talk about double digit growth at this stage, but certainly there will be very strong growth," he said.
As per the second advanced estimates of the Central Statistics Office (CSO), the economy is expected to grow at 6.6 percent in the current fiscal ending March 31, compared to 7.1 percent in 2016-17.
Yesterday, top finance ministry officials led by Garg, chief economic advisor Arvind Subramanian and principal economic advisor Sanjeev Sanyal met Fitch director, sovereign ratings, Thomas Rookmaaker and other officials. The meeting was ahead of the annual review of the country rating by Fitch.
Garg said the global rating agency had a good assessment of the country's future prospects.
"Fitch assessment about the Indian economy, reforms, and path forward seems to be extremely positive but whether it will result in a certain kind of upgrade and when, that is for the rating agency to decide," Garg said.
Fitch had last upgraded India's sovereign rating from BB+ to BBB- with stable outlook on August 1, 2006. | india economy grew 7.2 percent in third quarter of current fiscal. economy expected to grow at 6.6 percent in current fiscal ending march 31. last update to country's rating by global rating agency, based on 2006 data. cnn's nina dos santos says he is optimistic about the country's prospects. | Positive |
https://www.moneycontrol.com/news/business/markets/gold-price-today-yellow-metal-hits-fresh-record-high-buy-on-dips-for-target-of-rs-48600-5447711.html | India Gold August Futures pared gains after hitting fresh record highs of Rs 48,333 per 10 gm on June 24 tracking positive trend seen in the international spot prices.
Experts are of the view that as long as yellow metal sustains above Rs 48,200, it is a buy on dips for a target of Rs 48,600 per 10 gm.
On Multi-Commodity Exchange (MCX), August gold contracts were trading higher by 0.10 percent at Rs 48,281 per 10 gram at 09:30 hours. July futures for silver were trading 0.28 percent lower at Rs 48,500 per kg.
Gold and silver extended gains on June 23 in the international market. Both precious metals gained around 1 percent. Gold settled at $1,782 per troy ounce and silver also settled at $18.06 per troy ounce.
Gold & Silver Rates Yesterday Gold Rate in Mumbai Yesterday 10g of 24K gold in Mumbai ₹ 59,250 59,250
10g of 22K gold in Mumbai ₹56,430 56,430 View more Silver Rate in Mumbai Yesterday 10g silver in Mumbai ₹ 760 760
1kg silver in Mumbai ₹76,000 76,000 View more Show
Due to strength in rupee both the precious metals gained around 0.50 percent in the domestic market. Gold settled above 48200 and silver settled around 48800 levels.
“We expect both the precious metals remain volatile and could approach next resistance levels in the international market. Gold prices sustain above $1778 could extend the gains towards $1788-1800 per troy ounce, $1760 act as a major support for the day,” Manoj Jain, Director (Head - Commodity & Currency Research) at Prithvi Finmart Pvt Ltd told Moneycontrol.
“At MCX, Gold prices sustain above 48200 could extend the gains towards 48440-48600 levels, 47800 act as major support for the day,” he said.
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Expert: Sriram Iyer, Senior Research Analyst at Reliance Securities
International bullion prices have started with solid gains this Wednesday morning in Asian trade supported by expectations that global central banks will continue to provide more stimulus to the markets to cushion from the effects of a second wave in many nations.
Domestic bullion surged higher with gold hitting all time high’s tracking firm international prices. Domestically prices will start higher this Wednesday, tracking firm overseas prices.
Technically, LBMA GOLD Spot had give a sharp rise of 1% where its trading above $1770 levels with increased in volume activity indicating a positive trend to continue up to $1781-$1795 levels. Support is placed at $1755 levels.
MCX Gold August contract might give a gap up open above 48300 levels tracking overseas markets where it may continue its bullish momentum up to 48500-49100 levels. Support will be at 48200 level.
Expert: Ravindra Rao, VP- Head Commodity Research at Kotak Securities.
COMEX gold trades higher near $1786/oz and has hit a session high of $1791.8/oz, the highest level since Oct.2012. Gold trades higher supported by weaker US dollar, increasing concerns about rising virus cases, uncertainty about US-China trade deal, hopes of additional stimulus measures and continuing ETF inflows.
Gold may continue to trade with a positive bias on increasing uncertainty relating to rising virus cases however the momentum could subside if the price doesn’t close above $1789-1790 a multiple resistance zone.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | gold contracts were trading higher by 0.10 percent at Rs 48,281 per 10 gram at 09:30 hours. silver futures were trading 0.28 percent lower at Rs 48,500 per kg. domestic bullion surged higher with gold hitting all time highs. domestic bullion is expected to continue to rise as the dollar recovers. a soaring dollar is expected to boost the dollar. | Positive |
https://www.businesstoday.in/union-budget-2020/news/economic-survey-2020-how-privatisation-helps-cpses-unlock-growth-potential/story/395067.html | The Economic Survey 2020 pitched for aggressive disinvestment, preferably through the route of strategic sale to bring in higher profitability, promote efficiency, increase competitiveness and to promote professionalism in the management of Central Public Sector Enterprises (CPSEs).
In support, the Survey examined the realised efficiency gains from privatisation in the Indian context. It analysed the before and after performance of 11 CPSEs, which had undergone strategic disinvestment from 1999-2000 to 2003-04. To enable a careful comparison using a difference-in-difference methodology, these CPSEs are compared with their peers in the same industry group. The analysis showed that these privatised CPSEs, on an average, perform better post privatisation than their peers in terms of their net worth, net profit, return on assets (RoAs), return on equity (RoE), gross revenue, net profit margin, sales growth and gross profit per employee. More importantly, the ROA and net profit margin turned around from negative to positive surpassing that of the peer firms, which indicate that privatised CPSEs have been able to generate more wealth from the same resources. This improved performance holds true for each CPSE taken individually too.
In November 2019, India launched its biggest privatisation drive in more than a decade. An "in-principle" approval was accorded to reduce the government's paid-up share capital below 51 per cent in select CPSEs.
"The performance of privatised firms, after controlling for other confounding factors using the difference in performance of peer firms over the same period, improves significantly following privatisation," the survey added.
The analysis clearly affirms that privatisation unlocks the potential of CPSEs to create wealth.
FULL COVERAGE: Union Budget 2020
"The analysis clearly affirms that disinvestment improves firm performance and overall productivity, and unlocks their potential to create wealth. This would have a multiplier effect on other sectors of the economy. The focus of the strategic disinvestment needs to be to exit from non-strategic business and directed towards optimising economic potential of these CPSEs. This would, in turn, unlock capital for use elsewhere, especially in public infrastructure like roads, power transmission lines, sewage systems, irrigation systems, railways and urban infrastructure," it added further.
The Cabinet has 'in-principle' approved the disinvestment in various CPSEs. These need to be taken up aggressively to facilitate creation of fiscal space and improve the efficient allocation of public resources.
Also read: Budget 2020 Date: When is Union Budget, Expectations from Modi govt, Time, where to watch
Also read: Economic Survey 2020 forecasts India GDP growth at 6-6.5% for FY21 | economic survey 2020 pitched for aggressive disinvestment through strategic sale. CPSEs perform better post privatisation than peers in terms of net worth, net profit. analysis clearly affirms that privatisation unlocks the potential of CPSEs. 'in-principle' approval was accorded to reduce government's paid-up share capital below 51%. | Positive |
https://www.moneycontrol.com/news/india/sco-achieves-new-progress-with-entry-of-india-pakistan-xi-jinping-2587045.html | China President Xi Jinping
The Shanghai Cooperation Organisation has made new progress after the entry of India and Pakistan, Chinese President Xi Jinping said today as he welcomed Prime Minister Narendra Modi and Pakistan President Mamnoon Hussain to the eight-member grouping.
Prime Minister Modi and Pakistan President Hussain attended the summit for the first time after both countries were admitted as members of the Beijing-based Shanghai Cooperation Organisation (SCO) last year.
Xi, also host of the 18th SCO summit, in his opening remarks said that the presence of Prime Minister Modi and Pakistan President Hussain at the meeting here in the east Chinese port city was "of great historic significance."
"The SCO enjoys strong vitality and momentum of cooperation,” Xi said, attributing the organisation's standing to the Shanghai Spirit. He called for the pursuit of common, comprehensive, cooperative and sustainable security.
"We should reject the Cold War mentality and confrontation between blocs and oppose the practices of seeking absolute security of oneself at the expense of the security of other countries, so as to achieve security of all," he said.
He said countries should work for promoting open and inclusive cooperation for win-win outcomes.
"We should reject self-centered, short-sighted and closed-door policies. We should uphold WTO rules and support the multilateral trading system so as to build an open world economy," Xi said amidst a looming trade war between China and the United States over tariffs.
Later, addressing a press conference at the conclusion of the summit, the Chinese President said the SCO members will uphold the authority and efficacy of WTO rules, strengthen an open, inclusive, transparent, non-discriminatory and rules-based multilateral trading regime, and oppose trade protectionism of any form.
"During this summit, we have fully recognised the new progress made by our organisation since the accession of India and Pakistan," Xi said.
"We point out that economic globalisation and regional integration are the compelling trend of our times," he said.
He said all parties will continue to work in line with the principle of mutual benefit to improve regional economic cooperation arrangements, deepen cooperation in business, investment, finance, connectivity and agriculture, advance trade and investment facilitation to deliver benefits to the people and add fresh impetus to global growth.
"We have agreed to abide by the goals and principles of the SCO Charter, carry forward the Shanghai Spirit of mutual trust, mutual benefit, equality, consultation, respect for diversity of civilisations and pursuit of common development," he said.
Xi said as a trend towards multi-polarity and economic globalisation is deepening, there was a need to enhance cooperation among the SCO countries.
"In the face of tortuous recovery of the world economy and various international and regional hotspot issues, countries are confronted with many common threats and challenges that no one can tackle alone.
"Only by enhancing solidarity and coordination and deepening partnerships featuring peace, cooperation, equality, openness, inclusiveness and mutual benefit, we will be able to achieve lasting stability and development," Xi said.
The SCO members have agreed to jointly pursue regional peace, stability and development by promoting good-neighborliness and friendship and deepening practical cooperation, the Chinese President said.
Earlier, in his address, Xi called for adhering to extensive consultation, joint contribution and shared benefits in global governance, steadily reforming and improving the global governance system, and pushing all countries to jointly build a community with a shared future for humanity.
The SCO member states need to actively implement the 2019-2021 programme of cooperation for combating terrorism, separatism and extremism, he said. Member nations should enhance cooperation on defence security, law enforcement security and information security, Xi said.
Xi said that the SCO members need to build a powerful engine to achieve common development.
China will set up a 30-billion-yuan (USD 4.7 billion) equivalent special lending facility within the framework of the SCO Inter-bank Consortium, Xi said.
The SCO has eight member countries which represents around 42 per cent of the world's population and 20 per cent of the global GDP.
Besides Prime Minister Modi and President Xi, other leaders attending the summit include Russian President Vladimir Putin and Iranian President Hassan Rouhani.
The SCO was founded at a summit in Shanghai in 2001 by the presidents of Russia, China, Kyrgyz Republic, Kazakhstan, Tajikistan and Uzbekistan. India and Pakistan became its members last year. | Xi says the SCO has made new progress after the accession of India and Pakistan. he says the SCO has "strong vitality and momentum of cooperation" he says countries should work for promoting open and inclusive cooperation. he says he will oppose trade protectionism of any form. he says the SCO will uphold the authority and efficacy of WTO rules. | Positive |
https://www.financialexpress.com/market/ten-blue-chip-heavyweight-stocks-which-hit-their-52-week-high-today-check-details/1583292/ | After the exit poll results indicated Bharatiya Janata Party’s victory in the Lok Sabha Elections with a thumping majority, the Indian headline indices- Sensex and Nifty surged more than 1400 points and 400 points respectively on Monday. Both of the indices opened higher in the morning ahead of vote counting scheduled on Thursday this week. We take a look at a top ten blue chip stocks which hit their 52-week high today.
Most of the banking stocks hit their 52-week high in Monday’s trading session. State Bank of India, ICICI Bank, Kotak Bank and HDFC Bank touched their year’s peak on NSE. The other stocks which saw a massive and hit their 52-week high are Adani Ports, Larsen & Toubro, HDFC, UltraTech Cement, Titan and Bajaj Finance.
“After a few volatile sessions, the markets today opened with a 2% gain on both the indices with exit polls stating a comfortable victory to the NDA. The expected stability and continuity in policy, increase in FII inflow are keeping the markets positive. We are likely to see a revival in the corporate performance from the 2nd quarter in this financial year. If these results hold true on May 23, it will be good for the economy, though short term the markets may be driven by sentiments,”Pradeep Gupta, Co-Founder & Vice Chairman, Anand Rathi told Financial Express Online.
Among the banking stocks, shares of India’s largest bank SBI rallied by 8.3 percent to finally end at Rs 345.80 on BSE. ICICI Banks shares surged about 5 percent to finally settle at Rs 408.25, while shares of Kotak Bank and HDFC rallied around 3 percent to close at Rs 1,502 per share and Rs 2428 per share on NSE.
Stocks of L&T and HDFC rose more than six percent during intra-day trading session and settled at Rs 1,454 and Rs 2,120 a piece respectively. Shares of Adani Ports jumped more around 11 percent to end at Rs 407.45 on NSE. Shares of cement major UltraTech Cement rose around 6.21 percent and closed at Rs 4,771.80 per share. Shares of Titan and Bajaj Finance rose around 4 percent and 3 percent respectively. While, the shares of Tata Group company Titan shares ended at Rs 1,236.90 per share, stocks of Bajaj Finance close at Rs 3,418.50 on NSE. | indices opened higher in the morning ahead of vote counting scheduled on Thursday. most of the banking stocks hit their 52-week high in Monday’s trading session. shares of india’s largest bank SBI rallied by 8.3 percent to end at Rs 345.80 on BSE. ICICI Banks shares surged about 5 percent to finally settle at Rs 408.25. | Positive |
https://www.financialexpress.com/industry/sify-eyes-cloud-network-access-and-e-learning-for-growth-post-lockdown/1950680/ | Chennai-headquartered Sify Technologies (Sify) — touted to be the largest ICT service provider, system integrator and all-in-one network solutions company — has said cloud services, network access and security services, and e-learning would be the prime growth areas for the firm after the lockdown. Customers will look for flexible and agile technology and contracts. Service providers with consumption-based business models will get more attention from customers compared to others, it said.
The company is currently addressing the upgrade and downgrade requirements of customers, based on demand. It is remotely managing mission critical infrastructure of customers who are serving the core industries and consumers. The current situation has also stimulated conversations with customers on the need for scalable, flexible IT infrastructure that can be consumed on demand, said Kamal Nath, CEO, Sify.
After releasing Sify’s annual earnings performance, Nath said the current scenario under lockdown had created challenges in the short-term and opportunities in the mid- and long-term for the company. “We are seeing the cloud sceptical customers showing enthusiasm on cloud adoption to ease their capex cost and cash flow. Organisations are reviewing how to provide secured and productive work from home deployment. As a digital ICT service provider, we see this as an opportunity to further boost utilisation of our investments and enhancement of our services revenue,” he said.
For some time now, Sify has been increasing the level of automation across its entire suite of services. During the lockdown period, the company has been able to perform remote commissioning and maintain high service levels without any major impact.
Raju Vegesna, chairman, Sify, said, “Every adversity presents an opportunity to rethink the way we do business. I am incredibly proud of my team who are continuing to rise to the challenges faced by our clients every day. The biggest lesson for the market from this lockdown is that there is no escaping the digital economy of tomorrow. Sify’s future is in enabling that for our clients.”
Sify reported revenue of Rs 2295 crore for financial year 2019-20 as compared to Rs 2155 crore in the previous financial year. While ebitda for the year stood at Rs 408 crore. It registered a net profit of Rs 71crore against Rs 107 crore.
CFO M P Vijay Kumar said, “We had a reasonably good year 2019-20. The ebitda growth has been healthy, while we continue to spend for the future — both in people and tools — to increase our digital transformation service capabilities. The net profit is lower as the company is now subject to full taxes as past tax benefits have expired. As global trade shrinks substantially and overall demand and supply chain recovery is expected to take time, we are preparing the organisation for new contracts to be slow to conclude as some of our clients are likely to take time to regain their momentum in the market. We continue to carefully manage our costs, while ensuring that services to customers and their experience remain the best.”
He said the company was committed to its data centre, cloud and network centric expansion projects, and will exercise due caution in terms of timing and cost structure of these projects. Sify has also expanded to the US, with headquarters in the heart of California’s Silicon Valley. The company partners other major network operators to deliver global network solutions and has presence in more than 1600 cities in India, North America, the UK and Singapore. | customers will look for flexible and agile technology and contracts. cloud services, network access and security services, and e-learning would be prime growth areas for the firm after the lockdown. company is currently addressing the upgrade and downgrade requirements of customers, based on demand. e-learning will be the company's next big business. adversity presents an opportunity to rethink the way we do business. | Positive |
https://www.moneycontrol.com/news/india/airbnb-launches-initiative-to-boost-domestic-travel-focusing-on-nearby-destinations-5393561.html | Online accommodation platform Airbnb on Thursday said it has launched an initiative to support economic growth through domestic tourism, as local travel has begun to recover from the impact of the COVID-19 pandemic.
In India, 51 percent of the company's business comprises domestic bookings. In addition, search trends and wishlists by its users in India indicate that long lockdown has only piqued interest in and aspirations to travel, once the lockdown is eased, Airbnb said in a statement.
Key domestic markets for Airbnb are Goa, New Delhi, Rajasthan, Mumbai and Bengaluru but the company is also seeing a surge in searches for stay options in nearby cities especially near metro cities like Alibag, Lonavala, Panchgani near Mumbai, it added.
"As states in India open up, driving holidays, experiential travel, rural and farm stays and generally conscious travel choices, are some of the biggest trends emerging from India," Airbnb said.
The initiative, called 'Go Near', aims to tap the wish of the people to travel to nearby destinations.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
"For India, the launch of 'Go Near' is a reflection on people's desire to travel closer home to some really amazing domestic destinations that India has to offer -- the trends show us that people are eager to travel once again with new considerations of safety," Airbnb India Country Manager Amanpreet Bajaj said.
Airbnb will continue to follow guidance from local officials and encourage safe, responsible travel and work to ensure guests have great experiences, he added.
Follow our full coverage of the coronavirus pandemic here. | Airbnb launches initiative to support economic growth through domestic tourism. 51 percent of the company's business comprises domestic bookings. key domestic markets for Airbnb are goa, new Delhi, Rajasthan, Mumbai and Bengaluru. a vaccine works by mimicking a natural infection. a vaccine also helps quickly build herd immunity to put an end to the pandemic. | Positive |
http://www.financialexpress.com/market/top-5-elss-mutual-funds-these-schemes-returned-up-to-38-in-last-one-year/1064443/ | ELSS (equity linked saving scheme) mutual funds are something which usually excites anyone who is willing to save income tax by investing in stock markets. ELSS mutual fund generally gives higher returns as compared to the traditional schemes as they primarily invest in equity markets. Investing in ELSS allows you to save income tax under section 80C along with a capital appreciation of your money. Investors attention towards mutual fund schemes have been invariably increasing since last year.
The reason being the extended bull run in Indian equities and the religious campaigning by AMFI (Association of Mutual Funds in India). ELSS have a lock-in period of 3 years to avail tax benefits and one can invest an amount of as low as Rs 1,000. With ELSS mutual fund in focus, we take a look at top 5 ELSS mutual funds which have returned up to 38% in last one year.
BOI AXA Tax Adv Fund-Reg(G)
This scheme had returned about 38% in the last one year and has net assets to the tune of Rs 141.86 crore.
IDFC Tax Advt(ELSS) Fund-Reg(G)
This scheme had returned about 36% in the last one year and has net assets to the tune of Rs 1,012.2 crore.
Principal Tax Savings Fund
This scheme had returned about 30% in the previous 12-month period and has net assets to the tune of Rs 397.9 crore.
Mirae Asset Tax Saver Fund-Reg(G)
This scheme had returned 30% in the last one year term and has net assets of Rs 856.62 crore.
Aditya Birla SL Tax Relief ’96(ELSS U/S 80C of IT ACT)(D)
This scheme had returned about 29% over the course of the last one year and has net assets of Rs 4,949.08 crore.
The Association of Mutual Funds in India (AMFI) had launched several media campaigns in India in the beginning of 2017. All of the campaigns are designed in such a manner that they should educate and promote mutual fund among the people who are willing invest. Mutual fund investments are generally considered less risky than direct stock investment, reason being — periodic rebalancing, professional management by fund experts. | ELSS (equity linked saving scheme) mutual funds generally give higher returns as compared to the traditional schemes. Investing in ELSS allows you to save income tax under section 80C along with a capital appreciation of your money. ELSS have a lock-in period of 3 years to avail tax benefits and one can invest as low as Rs 1,000. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/stock-market-update-94-stocks-defy-positive-market-mood-hit-52-week-lows-on-nse/articleshow/64918370.cms | NEW DELHI: As many as 94 stocks, including Apar Industries, Balaji Telefilms, Dollar Industries and Greenply Industries hit 52-week lows on NSE on Monday even as market sentiment remained positive.Hindustan Aeronautics, Harita Seating Systems, JK Cement, Kothari Products, Orissa Minerals Development Company and TV Vision also featured among stocks that touched 52-week lows today.Healthy buying in metal, auto, pharma, oil & gas and bank stocks amid positive global cues in the light of a strong US jobs data and hints from Bank of Japan that it will maintain its ultra-easy money policy, helped Sensex and Nifty extend their gains to the second straight session on Monday.Investors are now optimistically awaiting the quarterly results of bluechip companies that will set the mood for the market. Tata Consultancy Services will report its April-June quarter earnings on Tuesday, kick-starting the earnings season.Besides, the Indian rupee improved on Monday, giving fresh hopes to market participants.The Sensex index rose 277 points, or 0.78 per cent, settling at 35,935, with 25 stocks advancing and 6 stocks declining.The Nifty added 80 points, or 0.74 per cent, to its previous close figure to close the day at 10,853, with 38 stocks in the green and 12 in the red.Ultratech Cement, Tata Consultancy Services and Titan Company stood as the top losers in the Nifty index. | 94 stocks hit 52-week lows on NSE on monday. Sensex and nifty extended gains to second straight session. Sensex index rose 277 points, or 0.78 per cent, settling at 35,935. Sensex index rose 277 points, or 0.78 per cent, settling at 35,935. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/last-3-years-rites-has-been-growing-at-a-cagr-of-15-6-rajeev-mehrotra/articleshow/64695393.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Operations Officer Programme Visit IIM Kozhikode IIMK Chief Product Officer Programme Visit IIM Lucknow IIML Chief Executive Officer Programme Visit
We provide services to the railways, metros, highways, waterways, ropeways etc and cover the complete transportation segment from concept to implementation assistance., CMD,, tells ET Now Edited excerpts:RITES is predominantly a consulting company. We are in business since last 44 years. We have worked in 55 countries so far and we are presently working in 10 countries. Our range of services in consultancy extends from concept to commissioning of several infrastructure transportation sector projects. We have been associated with countries’ key infra transport projects so far.Rites has been growing in last three years at a CAGR of 15.6% and we have been maintaining profitability as well. Our profits have grown by 7.7% in last three years. It is a debt-free company and we have been continuously paying dividend at 30% of PAT. We provide services to the railways, metros, highways, waterways, ropeways etc. We cover the complete transportation segment from concept to implementation assistance.We take up projects in areas we are comfortable in – be it a government or a private sector project. We work for PSUs and several foreign governments as well. In India we are predominantly a railway sector infrastructure consulting company but we also work with the ministries of home affairs, defence, health, transport, civil aviation etc. Most of these clients are with us and they keep placing repeated orders. It is not a one-off transactional relationship but a trust that has been built up over last four decades.We have an order book of Rs 4818 crore, about 50% of which is from our main consulting area orders which is then followed by turnkey orders of Rs 1,400-crore of turnkey projects that we have taken up and then exports about Rs 700 crore worth of exports. Besides doing consultancy, we also have some add on businesses which we developed as we got exposure to those markets . We found that those business segments are sustainable and doable by us.For example, the exports of locomotives are the nominated agency of Indian railways to export locos and rolling stock manufactured by Indian railway production units. Similarly, we are the only company which is doing locomotive leasing for inhouse inplant used by ports, power companies and mining companies.We have about 45 locomotives running in that area. For turnkey contracts, we have started doing second line, third line construction projects, electrification projects as well as workshop projects for Indian railways which is about Rs 1400 crore. Put together, the order book would be deliverable in about one to two and a half years.Consultancy is normally considered a safe business profile. Our clients say typically it would be two to four months’ payment cycle or in terms of number of days. For the turnkey projects, we take deposits in advance.Similarly, in case of project management consultancy that we do for several clients in India, the money is received in advance in a separate account. Then only comes the expenditure. We do not take any cash risk. This is a reasonably safe business model. Going forward, the only risk could be a slowdown in infrastructure spending which does not look likely in the present scenario.Within India, the railway sector investments have gone up about 32% in last three years and highways by about 22%. Similarly, major investments are coming into metros, airports etc. All these segments put together will continue to give a reasonable growth to the company and the consultancy business model. It is a less risky model. It does not need much capital or fixed assets either. | RITES is predominantly a railway sector infrastructure consulting company. we have an order book of Rs 4818 crore, about 50% of which is from our main consulting area orders. then followed by turnkey orders of Rs 1,400-crore of turnkey projects. we also have some add on businesses which we developed as we got exposure to those markets. RITES has been growing in last three years at a CAGR of 15.6% and we have been maintaining profitability as well. | Positive |
https://www.financialexpress.com/jobs/indias-cruise-industry-has-potential-to-create-over-a-million-jobs-in-next-3-4-years/1741203/ | By Jurgen Bailom
This year India is the host country for World Tourism Day with the theme of ‘Tourism and Jobs: A better future for all’. It is an apt occasion to explore how travel and tourism, in particular the cruise industry, can lead to job creation.
Figures by the World Travel & Tourism Council (WTTC) show the industry contributing $8.8 trillion to the global economy in 2018 with over 319 million jobs supported worldwide. Tourism can be a major contributor to the Indian economy given the right mix of policies and infrastructure. WTTC forecasts direct contribution of travel and tourism to India’s GDP to rise by 7.1% per annum over the next decade to reach 3.9% of the total GDP. The total contribution of travel and tourism to employment, including jobs supported indirectly, is at 8% of total employment.
Our PM has spoken about the scope to improve India’s tourism sector and urged the people to visit at least 15 tourist destinations within India in the next three years. This would ensure a big boost to Indian tourism by 2022 when the country marks 75 years of freedom.
One area where the potential for growth is immense is the Indian cruise industry. Over the last five years the outbound market for cruises is estimated to have tripled in size to 150,000 cruise passengers who head for a global cruise every year. This represents just 3% of the outbound leisure market and indicates the tremendous potential of the Indian cruise industry. However, even as the global cruise industry has shown good growth, the leisure cruise industry in India has not shown any signs of life.
With a scenic coastline of over 7,500 km, one can only imagine the prospects. Of course, achieving sustainable growth will require a robust cruise infrastructure backed by positive policy decisions on rationalisation of port fees, removing ousting charges and granting priority berthing to Indian cruise ships. The investment in the development of infrastructure would reflect in the growth of the industry and the creation of a plethora of jobs.
Training of talent required for the cruise industry would foster the growth of a complete ecosystem to develop talent with the skills and qualifications required for the wide variety of jobs offered by the cruise industry. This includes conventional positions that are common with the hospitality industry as well as specialised positions for the shipping industry.
The domestic cruise industry has the potential to create over a million jobs directly over 3-4 years. This would pay back the investment in infrastructure many times over. It is time we set sail and catch the winds of prosperity.
The author is president & CEO, Jalesh Cruises | this year India is the host country for world tourism day. figures show the industry contributing $8.8 trillion to the global economy. tourism can be a major contributor to the Indian economy. domestic cruise industry has the potential to create over a million jobs directly over 3-4 years. a cruise industry in india could create a million jobs directly over 3-4 years. | Positive |
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L&T Technology Services (LTTS) Monday said it has bagged a deal worth USD 40 million (about Rs 290 crore) to provide digital content management services to a technology company's industrial products segment.LTTS, without disclosing the client's name, said the deal is expected to run for a period of five years with an aggregate revenue potential of USD 40 million, covering engineering content management (ECM) programmes in the US and European regions.The engineering and R&D services company will leverage centres in Europe, US and India while assuming complete ownership and talent to manage content for all current and future product suites for the customer, it said in a statement."This would include technical design specifications, diagnostic solutions for service engineers and product training for customers and engineers, thereby supporting the entire ECM cycle from product conceptualisation to developing digital content platforms," it added.LTTS CEO and Managing Director Keshab Panda said the deal win highlights the company's consulting capabilities to key customers in the US and European markets."LTTS will provide expertise and support in building content management capabilities with the help of new technologies such as artificial intelligence and virtual reality , thereby enhancing the overall customer experience,” he added. | deal is worth USD 40 million (about Rs 290 crore) it will provide digital content management services to a technology company's industrial products segment. deal is expected to run for a period of five years with an aggregate revenue potential of USD 40 million. LTTS will leverage centres in Europe, US and India while assuming complete ownership. a virtual reality headset will be available in the u.s. and europe. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/rbi-measures-to-boost-liquidity-incentivise-banks-to-lend-more-to-boost-economy-finance-minister/articleshow/75199983.cms | In view of the difficulties being faced due to #COVID19, the @RBI has taken a slew of steps aimed at maintaining ad… https://t.co/Zo4n3mqflz — NSitharamanOffice (@nsitharamanoffc) 1587104898000
NEW DELHI: Finance Minister Nirmala Sitharaman on Friday said the RBI has taken a slew of steps to maintain adequate liquidity in the system, incentivise bank credit flows, ease financial stress and enable normal functioning of markets, following difficulties being faced due to COVID-19. Announcing a second stimulus in less than a month, the RBI eased bad-loan rules, froze dividend payment by lenders and pushed banks to lend more by cutting the reverse repo rate by 25 basis points to help mitigate risk to the economy posed by the pandemic."In view of the difficulties being faced due to #COVID19, the @RBI has taken a slew of steps aimed at maintaining adequate liquidity in the system, incentivising bank credit flows, easing financial stress, and enabling the normal functioning of markets," Sitharaman said in a tweet.In order to increase credit to farmers MSMEs and housing sector, RBI announced a special refinance facility totalling Rs 50,000 crore for NABARD, SIDBI and the National Housing Bank , she said.Of this, Rs 25,000 crore goes to NABARD, Rs 15,000 crore to SIDBI, and Rs 10,000 crore to NHB for improving long-term funding requirements of agriculture and the rural sector, small industries, housing finance companies, NBFCs and MFIs, the minister said."To increase MSME liquidity, @RBI announced a targeted long-term repo operation totalling Rs 50,000 crore aimed at mid and small NBFCs and MFIs. This amount can be revised upwards if needed in the future. RBI also cut the reverse repo rate by 25 bps to 3.75%," Sitharaman said.The reverse repo rate is the rate banks earn by parking deposits with the Reserve Bank of India "In order to encourage banks to deploy these surplus funds in nvestments and loans in productive sectors of the economy, it has been decided to reduce the fixed rate reverse repo rate under the liquidity adjustment facility (LAF) by 25 basis points from 4 per cent to 3.75 per cent with immediate effect," the RBI said.However, the RBI retained the policy repo rate at 4.40 per cent, and the marginal standing facility rate and the Bank Rate at 4.65 per cent.She further said that to ease the worries of MSMEs that are in danger of becoming NPA accounts, it has now been decided that the NPA classification norms will exclude the 3-month moratorium window that banks are allowed to give on loan repayments.This effectively means that bad loans or non-performing asset (NPA) classification will now happen after 180 days instead of the current policy of 90 days of payment default.This would cover the borrowers of both banks and NBFCs but lenders will have to make an additional provision of 10 per cent for those exposures under moratorium."The @RBI has increased the ways and means advance limit for states to 60 per cent over and above the level as on March 31 to help state governments tide over cash flow problems due to a temporary dip in revenue collections," she said.The RBI earlier this month had announced an increase in the ways and means advances (WMA) limit of states by 30 per cent.It has now been decided to increase the WMA limit of states by 60 per cent over and above the level as on March 31, 2020 to provide greater comfort to the states for undertaking COVID-19 containment and mitigation efforts, and to plan their market borrowing programmes better. The increased limit will be available till September 30, 2020.The RBI had announced its first stimulus on March 27 to help the economy deal with the impact of COVID-19 pandemic | RBI has taken a slew of steps to maintain adequate liquidity in the system. announcing a second stimulus in less than a month, RBI eased bad-loan rules. RBI also froze dividend payment by lenders and pushed banks to lend more. to increase credit to farmers, MSMEs and housing sector, RBI announced a special refinance facility. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/nifty-scales-mt-13000-to-hit-new-high-bank-stocks-hog-limelight/articleshow/79388123.cms | Gland Pharma closes in red for the first time, down over 2%
HDFC Bank gains over 3% after CLSA hikes price target
All sectors close in the green: Nifty Bank gains the most
Bosch shares jumps 10% in a high volume trade
178 stocks hit 52-week highs: IFC, HDFC Bank, Granules, Eicher Motors, Dixon among top names
"Indications are in the favour of the prevailing up move to extend further but the pace could be gradual. We reiterate our view to focus on the selection of sectors and stocks as we’re seeing rotational buying across the board." — Ajit Mishra, VP - Research, Religare Broking
FII inflow: Investors will keep an eye on buying by foreign investors as they have been extremely bullish on Indian markets, Any profit booking may have an adverse effect.
US markets: Investors will also track the movement on Wall Street as any downward mive their will hit the local markets as well.
NEW DELHI: Banking names were in huge demand while buying in RIL and auto names also supported the rally in benchmark indices that climbed to fresh record highs after another successful vaccine was developed.Market is moving in a one-way direction, and the vaccine by AstraZeneca promises a low cost solution to the pandemic problem which has worked as another booster shot for the bulls. FIIs have also been a major driving force behind the rally. Data available on NSDL website says till now, they have invested Rs 53,167 crore in Indian equity market in November.However, the volatility indicator is also rising, showing nervousness on the Street.The 30-share pack Sensex gained 445.87 points or 1.01 per cent to 44.523.02. Its broader peer NSE Nifty climbed 128.70 points or 1 per cent to 13,055.15. Nifty has closed above 13,000 level for the first time ever.Investors grew richer by Rs 1.35 lakh crore as the total market cap of BSE-listed firms rose to Rs 174.81 lakh crore."Market is inching higher with more confidence that Covid-19 vaccine will be available in India soon. It can provide an advantage to India compared to the rest of the world. While, foreign inflows have already broken to a new high on a monthly basis, due to risk on strategy on healthier EMs like India,” said Vinod Nair, Head of Research at Geojit Financial services.Among the bluechip names, Adani Ports was the biggest gainer from Nifty index as it rose 4.46 per cent to Rs 391.90. Axis Bank, HDFC Bank, Eicher Motors, Hindalco, M&M, ITC and SBI were the other top gainers.Titan was the biggest loser in the pack, down 1.45 per cent at Rs 1,328. HDFC, Bharat Petroleum, Nestle India, GAIL, Shree Cement and ONGC were top losers that slid up to 2 per cent.Broader market indices also rallied performing in line with their headline peers. Nifty Smallcap added 1.11 per cent while Nifty Midcap advanced 0.73 per cent. Nifty 500, the broadest index on NSE, rose 0.92 per cent.Future Retail, RBL Bank, Shriram Transport Finance, Equitas Holdings, Suven Pharma and Persistent Systems were among the biggest gainers from mid and smallcap indices, rising 5-10 per cent.GMR Infra, PI Industries, Jubilant Foodworks, Infibeam Avenues, Ujjivan Small Finance Bank and Wockhardt Pharma were top losers from broader market space, falling in the range of 2-5 per cent.All sectoral indices closed in the green. Nifty Bank rose the most, 2.46 per cent, followed by Nifty Private Bank that climbed 2.33 per cent. Nifty Realty and Nifty Auto were among other major gainers.Market breadth was in favour of the gainers as 1,637 stocks ended in the green, while 1,172 names settled with cuts. As many as 178 securities hit 52-week highs, mostly from the smallcap space. Meanwhile, 47 names hit 52-week lows, mostly from the microcap space. About 365 stocks hit upper circuit limits and 189 lower circuit limits.European markets were also upbeat. FTSE was up 1.06 per cent while Germany’s DAX added 1.30 per cent and France’s CAC 0.97 per cent. Asian markets closed mixed with Taiwan, Thailand and China seeing profit booking while the rest continued to gain. | 178 stocks hit 52-week highs: IFC, HDFC Bank, Granules, Eicher Motors, Dixon among top names. FIIs have been a major driving force behind the rally in benchmark indices that climbed to fresh record highs after another successful vaccine was developed. broader peer Nifty climbed 128.70 points or 1% to 13,055.15. Nifty has closed above 13,000 level for the first time ever. | Positive |
https://www.moneycontrol.com/news/business/real-estate/office-absorption-up-64-in-third-quarter-new-completions-increase-59-jll-report-5924871.html | Representative image
India’s office market witnessed a net absorption of 5.4 million square feet in the quarter ending September 2020, an increase of 64 percent versus the second quarter ending June, according to JLL Research.
The third-quarter office rebound growth was led by Bengaluru and Hyderabad, which together accounted for nearly 80 percent of the net absorption in Q3 2020. The heightened activity in Bengaluru indicates a gradual resurgence in take up of spaces coupled with the translation of pent up demand from Q2 this year.
“While we continue to see the impact of the pandemic on various businesses, there is a significant surge in activity across most office markets under consideration. This is seen in gross leasing which more than doubled from the previous quarter at 13.8 million sq ft," said Ramesh Nair, chief executive officer and country head, India, JLL.
"At the same time, it is important to note that large and mid-sized occupiers across major markets continue to review their real estate portfolios in a bid to optimise cost, higher emphasis is being given on sustainability and employee well-being as well as adoption of flexible working practices,” he said.
While the share of IT/ITeS occupiers in gross leasing dipped to 43 percent in Q3 from 61 percent in Q2 2020, e-commerce and manufacturing sectors gained significant shares during the third quarter forming 16 percent (negligible in Q2 2020) and 17 percent (5 percent in Q2 2020) respectively, owing to surging demand of e-commerce during COVID-19, it said.
New completions increased by more than half
New completions during Q3 2020 increased by 59 percent quarter-on-quarter with 9.2 million sq ft of new stock coming to market.
“With lockdown restrictions being relaxed in the third quarter in most of the markets under review, office projects in the final stages of construction or pending receipt of occupancy certificates came on board. This resulted in an increase in the supply of office space, even surpassing 8.6 million sq ft witnessed in Q1 2020,” said Samantak Das, chief economist and head of research, India at JLL.
In sync with net absorption, Bengaluru and Hyderabad led the increase in new completions accounting for 87 percent of the total new completions in Q3 2020. Notably, new completions in both these markets even went past the average new completion levels witnessed in the four quarters of 2019, the report said.
Vacancies go up in Grade A offices
Increased office space consolidation and optimisation strategies of corporate occupiers resulted in subdued net absorption levels, which could not keep pace with new completions. This resulted in overall vacancy increasing from 13.1 percent in the June quarter to 13.5 percent in Q3 2020.
Despite the rise in vacancy levels in southern markets, Bengaluru, Chennai and Pune continued to hover in the single digits. This augurs well for a strong rebound in these markets when economic and business conditions improve in the coming quarters.
Rentals across markets remain stable
Except for Bengaluru which witnessed a marginal increase in rents, office rents remained stable across all markets under review between Q3 and Q2 2020. With stable rental values and low vacancy levels, the office market in India continues to be favourable to landlords.
However, it is important to note that landlords across markets have become more flexible in providing increased rent free periods, reduced rental escalation and fully furnished deals to prominent occupiers which reduces their net outgo, the report said. | office rebound growth led by Bengaluru and Hyderabad, which together accounted for nearly 80 percent of the net absorption in Q3 2020. heightened activity in Bengaluru indicates a gradual resurgence in take up of spaces. e-commerce and manufacturing sectors gained significant shares during the third quarter forming 16 percent (negligible in Q2 2020) | Positive |
https://www.financialexpress.com/industry/mukesh-ambani-on-top-of-hurun-rich-list-for-9th-year-in-a-row-others-see-a-rise-in-wealth-too/2093954/ | RIL chairman Mukesh Ambani continued to be on the top of IIFL Hurun India Richlist for ninth year in a row even while the coronavirus pandemic ravaged the economy. In fact, 627 of the richest Indians, who have a wealth of Rs 1,000 crore or more, also saw an increase in their fortunes as on 31st August 2020, according to the latest report shared by IIFL and Hurun. A total of 828 Indians featured in the list. Mukesh Ambani, who is the Chairman of India’s most valued firm Reliance Industries Ltd, has a wealth of Rs 6.58 lakh crore. His total wealth surged by 73% in the last 12 months, and propelled him to become the richest individual in Asia and fourth richest person in the world. This year, a hike in Mukesh Ambani’s wealth alone contributed more than one-fourth of the total jump in the IIFL Hurun list.
“28% of the upswing in wealth on the list has been bestowed by Mukesh Ambani, bespeaking Ambani’s meteoric success post diversifying from oil to telecom and retail,” Anas Rahman Junaid, MD and Chief Researcher, Hurun India, said on Tuesday. A further 21% of the additional wealth has been generated by the pharma industry, mainly because there has been a hike in healthcare spends and a realigned priority towards personal healthcare due to the coronavirus pandemic.
London-based Hinduja brothers, who have a joint wealth of nearly Rs 1.44 lakh crore, bagged the second position on the list, followed by HCL-Founder Shiv Nadar. Others on the top 10 richest Indians list include Gautam Adani and family, Azim Premji, and Radhakishan Damani who is the founder of Avenue Supermarts etc.
“The IIFL Wealth Hurun India Rich List is a barometer of the Indian economy, helping us understand which industries have gone up, innovated or gone down. The stories of these entrepreneurs tell the stories of India’s modern businesses,” Anas Rahman Junaid said, adding that the list bears testimony to India’s growth story. | 627 of the richest Indians, who have a wealth of Rs 1,000 crore or more, saw an increase in their fortunes as on 31st August 2020. Mukesh Ambani is the chairman of india’s most valued firm Reliance Industries Ltd. his total wealth surged by 73% in the last 12 months, and propelled him to become the richest individual in Asia and fourth richest person in the world. | Positive |
https://www.financialexpress.com/economy/indo-us-limited-trade-deal-nearly-ready-piyush-goyal/2071861/ | A “limited” India-US trade deal that has been in the works for months is “nearly ready” and can be “finalised at any time”, commerce and industry minister Piyush Goyal said on Tuesday.
Speaking at a virtual leadership summit of the US-India Starategic Partnership Forum, Goyal said US trade representative Robert Lighthizer and he has agreed that “we can look finalising before the election, but otherwise soon after the election”.
Goyal stressed that it’s going to be a “foundation deal” that will deepen bilateral trade engagement. “India is open to signing tomorrow on what we have agreed on,” he added, indicating India’s readiness to clinch the deal on the points of convergence at the earliest. “India believes that it has to be win-win for both countries, and what we have created, the architecture of the initial deal, is in the best interests of businesses of both countries,” he said.
Sources had earlier told FE that the “limited” deal could cover annual trade of over $13 billion, or roughly 15% of bilateral shipment, which also included a complete restoration of duty benefits for New Delhi under the so-called Generalised System of Preferences (GSP). However, if an agreement is reached quickly on widening the coverage, the initial deal could take the shape of a preferential trade agreement, amounting to a much higher value of annual trade.
India may consider opening up its dairy and poultry sectors partially if it gets a good deal from the US in textiles and garment and pharmaceuticals. In garments, for instance, the US import duties (for India) currently range between 16.5% and 32%. This deal may be followed by talks on a potential free trade agreement (FTA).
As part of the limited deal, India will likely reduce tariffs on high-end bikes like Harley Davidson, pledge greater market access in farm products, including cherry, and sweeten its initial offer on easing price caps in medical equipment, a source had said earlier. India is willing to apply trade margin on coronary stents and knee implants at the first point of sale (price to stockiest), instead of imposing it on the landed prices, as was proposed by it initially, to make it more attractive for American companies like Abbott. India is also willing to resolve certain non-tariff measures, such as certification process for some dairy products and market access in alfalfa hay and pork.
Already, in July, Goyal had suggested that both India and the US could clinch a quick trade deal. “We should be able to get the quick trade deal out of the way after a few more calls. India and the US must sit down to negotiate a robust FTA but before that we can even look at an early harvest trade agreement for 50-100 products,” Goyal had said.
If the US agrees to roll back its extra tariff of 25% on Indian steel and 10% on aluminium, New Delhi will lift retaliatory steps and scrap punitive duties on 29 American goods, including farm items like almond, apple and walnut. This is expected to augur well for the Trump administration before the Presidential elections in November.
The US has been pressing India to abolish/cut “not justified” tariff on motorcycles (50%), automobiles (60%) and alcoholic beverages (150%). It is seeking better trade balance with India through greater market access in agriculture and dairy products.
The “limited deal” was earlier expected to be announced after Prime Minister Narendra Modi’s meeting with American President Donald Trump in New York on September 24 last year. However, differences over certain sticky issues caused the delay.
India’s trade surplus with the US has been shrinking, as it has stated importing oil and gas from the largest economy, something that India has been highlighting.
According to the US government data, New Delhi’s trade surplus with Washington eased to $24.3 billion in 2016 to $23.3 billion in 2019. According to the Indian government data, imports from the US stood at $35.7 billion in FY20, up 0.3% even though overall merchandise imports dropped by 7.8%. | trade minister says a limited deal is "nearly ready" and can be finalised at any time. sources had earlier said the deal could cover annual trade of over $13 billion. the limited deal could also include a complete restoration of duty benefits for New Delhi. the deal may be followed by talks on a potential free trade agreement (FTA). | Positive |
https://www.financialexpress.com/market/m-june-tractor-sales-pick-up/2011233/ | Mahindra & Mahindra (M&M) share price surged nearly 6 per cent to Rs 528.05 apiece on BSE a day after the company reported robust growth in sales figures for June in the tractor segment. The stock price has more than doubled from March lows of Rs 246 apiece, registering a growth of 115 per cent. According to BSE data, the market capitalisation of the top Sensex gainer in today’s trade stood at Rs 65,329.77 crore at the time of writing this report. Analysts attribute strong tractor sales in June to robust rabi harvest, the timely arrival of the monsoon which aided Kharif sowing, and government reforms. “M&M’s overall tractor volumes increased by 10% yoy led by 12% yoy increase in domestic volumes due to aggressive procurement of crops by the government, record rabi crop and good progress in the sowing of Kharif crop in June 2020,” analysts at Kotak Institutional Equities said in a report.
The company sold 36,544 units of the tractor in June as compared to 33,094 tractors in the same month of the preceding year. Domestic tractor sales to 35,844 units as compared to 31,879 units in June 2019. “This is our second highest June sales ever,” said Hemant Sikka, President, Farm Equipment Sector, M&M.
Sikka said that the positive sentiments were led due to the timely arrival of the south-west monsoon, combined benefits of a record rabi harvest, government support for Agri initiatives and good progress in the sowing of the Kharif crop. The management also highlighted that on the back of rising rural demand and movement of essential goods across the country, key brands such as Bolero, Scorpio and Pick-ups, are all seeing good traction. Moreover, better cash flows in rural markets have helped boost tractor demand during June, Sikka added.
Research and brokerage firm Motilal Oswal Financial Services prefers M&M and Eicher Motors and Motherson Sumi Systems among mid-caps. “We prefer companies with (a) higher visibility in terms of demand recovery, (b) a strong competitive positioning, (c) margin drivers, and (d) balance sheet strength,” said the brokerage firm.
Both the brokerage firms Motilal Oswal Financial Services and Kotak Institutional Equities believe that growth witnessed in the tractor sales in June were due to strong rural demand and improved farm sentiments. | the company reported robust growth in sales figures for June in the tractor segment. the stock price has more than doubled from March lows of Rs 246 apiece. analysts attribute strong tractor sales to robust rabi harvest and the timely arrival of the monsoon which aided Kharif sowing. the company sold 36,544 units of the tractor in June as compared to 33,094 tractors in the same month of the preceding year. | Positive |
https://www.financialexpress.com/economy/india-second-most-optimistic-globally-about-executive-job-growth-says-survey/1525441/ | India’s senior-management leaders, after Brazil, are most optimistic about the growth in the number of roles at senior-management level in 2019. 57 per cent India’s senior executives in a survey of 1,436 senior-management professionals worldwide said that they hope growth in the job market this year. Indian executives are second only to 72 per cent Brazilian leaders in optimism. 54 per cent leaders in Africa, followed by 40 per cent in France and 38 per cent in Southeast Asia were also in the list of the most optimistic markets.
India, however, topped the list with 57 per cent in terms of economy forecast for 2019 followed by 56 per cent Brazilian leaders. Importantly, among the least optimistic nations in the survey were Japan and Korea at 71 per cent, said the survey titled 2019 BlueSteps Executive Career Outlook.
Other countries’ leaders that didn’t sound optimistic about their economies were 66 per cent from Eastern Europe, 63 per cent from UK and Ireland and another 63 per cent from Greece, Italy, and Turkey each.
“Markets with the highest and lowest levels of optimism for the economy generally are the same as those with the highest and lowest levels of optimism for the job market,” the survey said.
Here are some other interesting findings from the survey:
Global leaders predicted India and Greater China to have the strongest GDP growth at 43 per cent each in 2019. The US stood third at 31 per cent. The recent UN’s World Economic Situation and Prospects (WESP) 2019 report said that India is expected to record the highest GDP rise of 7.6 per cent for 2019-2020.
Overall, the optimism for global executive job market according to professionals surveyed is down to 42 per cent for this year from 54 per cent in 2018.
Leaders who are not positive about the market globally believed economy (46 per cent) and political climate (20 per cent) to be among top reasons. “The two most common political and fiscal issues cited were the trade war between the US and China and Brexit,” the survey said.
Only 37 per cent executives expected an increase in executive roles globally in 2019.
61 per cent leaders said that a deep innovation culture in organizations impacts their decision to join that company. | 57% of india's senior executives say they hope growth in the job market this year. 54% of leaders in Africa, 40% in France and 38% in Southeast Asia are optimistic. among the least optimistic nations were Japan and Korea at 71%. global leaders predicted India and Greater China to have the strongest GDP growth at 43% each in 2019. the us stood third at 31%. | Positive |
https://www.financialexpress.com/industry/technology/apple-now-lets-you-buy-custom-macbook-and-mac-pc-configurations-in-india-if-you-can-afford-them/1973382/ | Apple is finally adding a configure-to-order (CTO) or build-to-order (BTO) option for MacBook and Mac PC buyers in India. This means MacBook and Mac PC buyers in India can now opt for “specific” RAM, ROM, or graphical power configurations as per their need and budget from Apple Authorised Resellers. Apple now offers such opt-ins across its entire Mac portfolio including MacBook Air, Mac Mini, iMac and basically every other Mac computer or laptop that’s currently sold in India.
Configure-to-order or build-to-order has existed in the Western markets like the US for some time now, especially after Apple started making computers and laptops so high-end, it seemed like borderline insane for average buyers. These are configurations Apple usually talks about at length at its keynote events and highlights in press releases, literally showing off how powerful things could get should you need and afford them.
In India, however, because the option to order custom configurations wasn’t available (until now), buyers had to make do with select basic, sort of entry-level models of Mac computers and laptops, without customisations. Take the recently launched 13-inch MacBook Pro (2020) for instance. The 13-inch MacBook Pro for 2020 can go up to 10th-generation quad-core Intel Core processors with Turbo Boost speeds of up to 4.1GHz, up to 32GB RAM, and up to 4TB SSD storage.
But in India, the 13-inch MacBook Pro was launched and made available in two processor configurations. While the base model shipped with a 1.4GHz quad core Intel Core i5 Gen 8 (Turbo Boost up to 3.9GHz) processor, the top-end model came with a 2.0GHz quad core Intel Core i5 Gen 10 (Turbo Boost up to 3.8GHz) processor. The base model was paired with 8GB of 2133MHz LPDDR3 RAM and either 256GB or 512GB SSD, while the top-end model came with 16GB of 3733MHz LPDDR4X RAM and either 512GB or 1TB SSD storage.
With configure-to-order in place, buyers in India can now ask for specific upgrades. Apple will deliver these custom Mac laptops and computers to buyers in about a month’s time depending on availability of components.
Apple is in the midst of perhaps its biggest India push at this point of time with CEO Tim Cook being quite vocal about India as a ‘key’ market for Cupertino’s growth in the future even as it sees sales dip in its home market. All its focus has been on the iPhone so far, but it seems, Apple has finally started to widen its horizons by adding the Mac to that list.
Apple is gearing to launch its first online store in India this year, and its first physical retail store here in 2021. The move will also help Apple bring its hallmark services like Apple Care to India as is so Apple users here would be able to make more out of their purchase. | configure-to-order (CTO) or build-to-order (BTO) option added. buyers in India can now ask for specific upgrades. configurations are available across the entire Mac portfolio. this includes MacBook Air, Mac Mini, iMac and basically every other Mac computer or laptop that’s currently sold in India. if the configurations aren’t available, buyers will have to make do with basic entry-level models of Mac computers and laptops. | Positive |
https://www.moneycontrol.com/news/business/markets/strategy-for-june-series-near-term-trade-setup-indicates-buy-on-dips-for-nifty-till-9200-holds-5330941.html | Navneet Daga
Nifty50 finally saw consolidation breakout above 9,150-9,200 zone led by short-covering moves on banking and financials. The BankNifty gained ~11 percent for the week while Nifty was up ~5 percent during the same period.
The markets gained traction in the past two sessions as global buoyancy in equities compelled FII’s to cover heavy short positions.
Options writers scrambled to cover short positions as large delta moved to force call writers to unwind positions on ATM strikes.
Rollovers:
Rollovers for Nifty/Bank-Nifty stood at 75 percent (1cr shares)/81% (14lakh shares) 71% (96lacs shares)/81% (10lakh shares) previous month.
The aggregate shares increased ~40 percent for BankNifty from the previous month. In May series, Rollcost on Nifty remained negative with ~(-25 points) to long rollers during expiry day.
FII Derivatives Stats:
Intense short-covering moves seen in the past two days as FIIs were unwinding index futures short positions to tune of ~53k contracts on a net basis.
The long/short ratio on index futures stands at 1.71x levels for the start of June series, while cash-based selling continued from FII’s.
On an aggregate basis from previous weekly expiry day (21st May) FII participants added significant stock futures long positions along with Index call buying and put selling, implying dips in the near-term are likely to be bought.
US markets saw a big up move as S&P moved back above 3,000 mark stocking catch up move for global equity indices. India VIX cooled down by another ~8 percent to 30 levels on a weekly basis.
India VIX likely to find support in the range of 30 mark, whipsaw moves expected on the back of global developments, as rally gathers momentum we are witnessing participation from broader markets indicating dips likely to be bought into in near term.
On the options front, June series starts with the buildup on monthly series 9,000 put strike holding ~2.2mn shares while on call 10k strike holding ~1.8mn shares.
Scattered buildup on options indicates wide trading range participants betting on while near term we expect a trading band of 9200 to 9600 for Nifty.
We believe post 32 percent rally from the low of 7,511, we believe that the ongoing Nifty's corrective phase is likely to continue. The recent price structure of descending lows and peaks indicates immediate hurdles near the 9,600-9,700 zone.
BankNifty continued its underperformance (this year so far BankNifty is down by 40% against Nifty’s 22% decline), expecting catch up trade on for Banking stocks after recent outperformance during the week.
Sectors:
The comeback of Banking and financial during the week and continuation of the uptrend from metals/auto stocks showing trends.
June series, setup indicates bouts of short-covering to continue from FII’s and catch up trade to global peers which will dictate the terms in the near future.
(The author is Senior Derivatives Analyst – Institutional Equities, YES Securities)
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | Navneet Daga Nifty50 finally saw consolidation breakout above 9,150-9,200 zone led by short-covering moves on banking and financials. the BankNifty gained 11 percent for the week while Nifty was up 5 percent during the same period. options writers scrambled to cover short positions as large delta moved to force call writers to unwind positions on ATM strikes. | Positive |
https://www.financialexpress.com/money/income-tax/arun-jaitley-says-number-of-direct-taxpayers-may-double-to-7-6-crore-during-5-years-of-modi-government/1345993/ | Finance Minister Arun Jaitley said Thursday the number of direct taxpayers is expected to double to 7.6 crore during the five-year term of the present government on account of various initiatives like rationalisation of tax structure, lowering of rates and anti-black money measures. “If we look at the functioning of the direct tax department, various factors like strict compliance, rationalisation of tax structure, lowering the lowest slab, and the result of that has been…we are finding 15-20 per cent gradual increase in the tax collections every year,” he said. He said this while delivering the valedictory address at the 29th Conference of Accountants General here, organised by the Comptroller and Auditor General (CAG).
The number of direct taxpayers was 3.8 crore when the Modi-led government took office in May 2014. “Four years ago, when we assumed office the total number of people who filed tax returns in India was 3.80 crore. It’s already 6.86 crore last year, which is the fourth year. At the end of fifth year, I do hope it will be something close to 7.6 crore or 7.5 crore, which means that in five years we would have doubled the number of people filing tax returns in India,” he added.
He attributed the increase in number of direct taxpayers to initiatives of the government like anti-black money measures, formalisation of economy, use of technology, ability to detect transactions. These initiatives have also led to increase in tax collections by 15-20 per cent, he added. | finance minister says number of direct taxpayers expected to double. attributed increase to initiatives like anti-black money measures. he said tax collections have increased by 15-20 per cent. number of direct taxpayers was 3.8 crore when the modi-led government took office in may 2014. he said the number of direct taxpayers was already 6.86 crore last year. | Positive |
https://www.moneycontrol.com/news/business/earnings/insecticides-india-posts-5-rise-in-q4-net-profit-at-rs-7-7-cr-2577921.html | We are in the last phase of the September quarter earnings season, and the results announced by the BSE 500 companies so far have shown signs of a sharp recovery, as compared to the June quarter, when the economic activity in the country was compromised due to lockdown in various regions. From the BSE 500 list, 216 companies have announced their September quarter results so far. We excluded banking and financial companies. Along with the index stocks we also analyse each sector quarterly earnings. (Data Source: ACE Equity)
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Agro-chemical firm Insecticides India has posted 5 per cent increase in its net profit at Rs 7.68 crore in the fourth quarter of last fiscal. Its net profit stood at Rs 7.32 crore in the year-ago period, the company said in a regulatory filing.
Total income fell to Rs 169.3 crore during January-March period of the 2017-18 fiscal from Rs 183.43 crore in the previous year.
During the full 2017-18 fiscal, Insecticides reported 41 per cent rise in net profit at Rs 83.97 crore against Rs 59.39 crore in the previous fiscal.
Total income rose to Rs 1,109.63 crore in the last fiscal from Rs 1,083.09 crore in the previous year.
"We are witnessing great traction for our products. Launch of new products gives us depth in our offerings to the markets and also supports us expanding our reach. We expect to continue the same trend in our performance," Insecticides India MD Rajesh Aggarwal said in a statement. | 216 companies have announced their September quarter results so far. the results show signs of a sharp recovery. the company says it is witnessing great traction for its products. the company says it expects to continue the same trend. agro-chemical firm insecticides india has posted 5% increase in its net profit. a total income fell to Rs 169.3 crore during the year-ago period. | Positive |
https://www.financialexpress.com/market/sensex-closes-over-200-points-higher-after-us-north-korea-summit-investors-await-iip-cpi-data/1203225/ | The BSE Sensex closed Tuesday’s trade over 200 points higher amid positive global cues. According to market observers, investors now awaited the release of key macroeconomic data later in the evening — the Consumer Price Inflation (CPI) and Index of Industrial Production (IIP). The Nifty too surged over 50 points and closed trade firmly over the crucial 10,800-mark. Healthy buying was witnessesd across all sectors on the BSE — barring the metals and telecom indices — led by healthcare, capital goods and banking stocks.
On Tuesday, the Sensex closed at an over four-month high at 35,692.52 points, rising by 209.05 points or 0.59 per cent. The index surged almost 260 points to hit an intra-day high of 35,743.08 points. The NSE Nifty rose by 55.90 points or 0.52 per cent to close Tuesday’s trade at 10,842.85 points. According to Vinod Nair, Head of Research, Geojit Financial Services Ltd, equity markets closed higher supported by positive outcome from the US-North Korea summit. “However, global market remains mixed ahead of Fed, ECB and BoJ policy meeting during the week. Back home, investors are also keen on today’s CPI and IIP data to get a provisional direction,” Nair said.
Out of 2,806 trading companies on the BSE, 1,441 were in advances and 1,222 were in declining trend indicating a bullish sentiment in the market. Among the top gainers on the BSE were Dr Reddy’s Lab, State Bank of India, IndusInd Bank, Hindustan Unilever and Hero MotoCorp. The losers included Bharti Airtel, Tata Steel, Coal India, ONGC and Yes Bank. Global stocks edged higher on Tuesday after the much anticipated U.S.-North Korea summit, while the dollar turned negative after hitting a three-week high, Reuters reported. | the Sensex closed at an over four-month high at 35,692.52 points. the index rose by 209.05 points or 0.59 per cent to hit an intra-day high of 35,743.08 points. the Nifty too surged over 50 points and closed trade firmly over the crucial 10,800-mark. global stocks edged higher on Tuesday after the much anticipated U.S.-North Korea summit. | Positive |
https://www.financialexpress.com/money/reliance-group-plans-mutual-fund-unit-ipo-may-get-rs-20000-crore-valuation-2/706487/ | Anil Ambani-led Reliance Group plans to come out with an initial public offering during this fiscal for its mutual fund arm, which is expected to value the company at about Rs 20,000 crore. It could be the first initial public offering by a major asset management company (AMC) in India though smaller rival UTI MF’s IPO plans have been in the works for a long time. “We would like to do it soon but at the outer limit it would be done by March this fiscal,” Sundeep Sikka, executive director and CEO, Reliance Nippon Life Asset Management told reporters here following the board meeting. The board of Reliance Nippon Life Asset Management (RNAM) today approved a proposal to list its shares on the stock exchanges, the company said. The company will use the funds raised from the IPO to grow the business as well as look for inorganic opportunities, Sikka said. Nippon will also be participating in the IPO. “As a part of financial inclusion we have been creating wealth for mutual fund unit holders. Now we also believe it’s an opportunity for retail investors to participate as equity shareholders in the AMC,” he said. “Along with further consolidations happening in economy we would like to be ready to take advantage of suitable acquisitions,” he added.
The company would soon initiate the process to appoint merchant bankers, lawyers and auditors to manage its IPO. Reliance MF is the third largest player in 42-member strong mutual fund industry. RNAM has assets under management (AUM) of Rs 3.6 lakh crore, including Rs 2.11 lakh crore for mutual fund. Typically, asset management companies are valued at 5 per cent of AUM, which is likely to value Reliance MF at about Rs 20,000 crore and a 10 per cent stake sale could fetch Rs 2,000 crore, analyst and market sources said. As per markets regulator Sebi’s listing norms, the company has to dilute a minimum of 10 per cent to list on stock exchanges which will increase to 25 per cent in three years. Without divulging valuation details, Sikka said the aim is to dilute 10 per cent stake by March and further 15 per cent over three years as per Sebi norms.
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This would be the first IPO by a Reliance group firm in about a decade since Reliance Power’s public offer in 2008. Reliance Nippon Life Asset Management is a subsidiary of Reliance Capital with Nippon Life Insurance Company as its strategic partner. Reliance Capital holds 51 per cent stake in RNAM. UTI MF’s public issue will allow a partial exit to four of its investors -— State Bank of India, Life Insurance Corporation, Bank of Baroda and Punjab National Bank. | RNAM is expected to value the company at about Rs 20,000 crore. it is the first IPO by a major asset management company in india. a 10 per cent stake sale could fetch Rs 2,000 crore. the company has been rumoured to be considering a bid for a chinese firm. it is expected to be the first IPO by a major asset management company (AMC) | Positive |
https://www.financialexpress.com/economy/un-economic-experts-hail-pm-modis-impressive-rs-20-lakh-crore-stimulus-package-to-revive-economy-hit-by-coronavirus/1958853/ | Top UN economic experts have hailed as ”impressive” the Rs 20 lakh crore stimulus package, the largest so far among developing countries, announced by India to revive the country’s economy, which has been severely hit by the coronavirus-triggered lockdown.
Prime Minister Narendra Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore (USD 260 billion).
While launching the World Economic Situation and Prospect (WESP) report update on Wednesday, Chief of the Global Economic Monitoring Branch Hamid Rashid told reporters in response to a question that the stimulus package announced by the Indian government on Tuesday ”is a very welcome development.”
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He said the Rs 20 lakh crore package, which is 10 per cent of India’s GDP is the ‘largest so far in the developing countries because most developing countries have been rolling out stimulus packages that are between 0.5 per cent and 1 per cent of the GDP.
”India’s stimulus packages are very large. And also India has the domestic financial market and the large capacity to implement that large stimulus package,” he said, adding that impact of the package would depend on the design of the stimulus.
The mega Rs 20 lakh crore stimulus package includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.
The combined package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world after the financial packages announced by the US, which is 13 per cent of its GDP, and by Japan, which is over 21 per cent of its GDP.
Associate Economic Affairs Officer, Economic Analysis and Policy Division, Department of Economic and Social Affairs (EAPD/UN DESA) Julian Slotman told PTI in an interview that the size of India’s stimulus package is ”impressive” and seems to be of a magnitude that will help to reassure markets and to boost domestic consumption. But at the same time when people are simply not able to spend, you cannot expect the economic growth to suddenly magically re-appear.
Lauding the Indian government for implementing a strict lockdown while the number of COVID19 cases was relatively low, he said at some point it will be inevitable to gradually ease the restrictions but warned that that could result in infections increasing in the country.
”Fortunately in India, the central government acted very decisively in implementing the national lockdown” when the number of virus cases was relatively low and “it seems to have slowed the spread of the disease somewhat,” he said.
”The decisive containment measures are absolutely critically necessary and a strong lockdown is critical in India,? he said, adding that the duration of the lockdown has to also be economically feasible. ”It is putting tremendous pressure on the Indian economy and of course disproportionately hurting the people that are the most vulnerable and poor.”
He said that in India, priority must be given to reduce uncertainty first so that people can eventually go out and spend again. He urged the Indian government to exercise maximum caution in easing the lockdown, saying the country should ”not hasten anything unnecessarily. There are ways to gradually lift restrictions,” he said.
He added that with a large informal sector in India, the lockdown has disproportionately affected women and migrant workers.
Meanwhile, the UN on Wednesday slashed India’s projected GDP growth rate to 1.2 per cent in 2020-21 as the COVID19 pandemic ravages the global economy.
In the WESP report update, the UN DESA said that global GDP is forecast to contract sharply by 3.2 per cent as the COVID-19 pandemic paralyses the world, sharply restricting economic activities, increasing uncertainties and unleashing a recession unseen since the Great Depression.
“Cumulatively, the world economy is expected to lose nearly USD 8.5 trillion in output in 2020 and 2021, nearly wiping out the cumulative output gains of the previous four years,” the report said.
India’s economic growth is forecast to slow to 1.2 per cent in the current fiscal, a further deterioration from the already slowed growth of 4.1 per cent in 2019. India, which grew at 6.8 per cent in fiscal year 2018, is forecast to recover and clock a 5.5 per cent growth rate in 2021.
The Economic Survey, released a day before Finance Minister Nirmala Sitharaman presented the Union Budget for 2020-21 on February 1, had projected a GDP growth of 6-6.5 per cent, up from 5 per cent estimate for 2019-20.
”The national lockdown in India, for example, is expected to depress economic growth to just 1.2 per cent, much lower than the already disappointing growth in 2019,” the report said.
Despite the considerably slowed growth rate of 1.2 per cent, India is still the second fastest-growing major economy in the world after China.
According to estimates in the report, India and China are the only two economies in the world that are not projected to shrink in 2020 even though their growth rates slow down considerably. While India could clock a 1.2 per cent GDP growth, China is estimated to record a 1.7 per cent growth rate.
All other economies in the world, including the US (-4.8 per cent), Japan (-4.2 per cent), European Union (-5.5 per cent) and the United Kingdom (-5.4 per cent) are projected to shrink this year. | the mega Rs 20 lakh crore stimulus package is among the most substantial in the world after the financial packages announced by the US and Japan. the combined package works out to roughly 10 per cent of the GDP. the package includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing. the package is among the most substantial in the world after the financial packages announced by the us, which is 13 per cent of its GDP, and by Japan, which is over 21 | Positive |
https://www.moneycontrol.com/news/business/sri-lanka-to-seek-400-million-financial-facility-from-rbi-to-meet-short-term-financial-needs-5185821.html | Sri Lanka is set to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million to boost the foreign reserves and ensure the financial stability of the country which is badly hit by the COVID-19 pandemic, a top minister has said.
The Cabinet has approved a proposal made by Prime Minister Mahinda Rajapaksa as the Finance Minister to enter into an agreement with the RBI for the financing facility to meet short-term international liquidity requirements, Co-Cabinet spokesman Information and Communication Minister Bandula Gunawardena said.
Sri Lanka will enter into the agreement with the RBI for a Bilateral Currency Swap Arrangement worth $400 million, Gunawardena said, adding the facility from the RBI is aimed at boosting the island nation's foreign reserves.
Sri Lanka has placed critical economic measures to save the resources hit badly by the COVID-19 pandemic which has infected 373 persons in the country and the death toll reached 7.
Addressing the Cabinet media briefing yesterday, Gunawardena said the Cabinet meeting chaired by President Gotabaya Rajapaksa paid special attention to the control of the coronavirus pandemic, its success and the distribution of goods and relief to the people.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
The minister pointed out that the whole world is now experiencing the economic collapse since World War II resulted from the COVID-19 outbreak and a single country alone cannot find a solution to the crisis.
So the Cabinet of Ministers has approved this proposal in order to ensure the financial stability of the country, Gunawardena said.
The country has ordered imports restrictions to prevent non-essential imports. This is in view of the local rupee falling to its historical low against the US dollar. The rupee now hovers over 195 to the dollar gaining somewhat from being down to 200 mark.
The government has also announced talks with Asian Development Bank and China's Asian Infrastructure Investment Bank. A $300 million budgetary support is anticipated from the ADB, officials said.
The announcement for getting the $400 million financial facility from India came as the rating agency, Fitch on Wednesday warned Sri Lanka to reform its soft-peg and block the ability of its domestic operations department to inject large volumes of cash below the ceiling policy rate to stop monetary instability.
Last month, during a video conference of Prime Minister Narendra Modi along with leaders and representatives from SAARC nations, Sri Lankan President Gotabaya Rajapaksa said, "Our economy has taken a severe blow due to the coronavirus, particularly in tourism... Our exports are also adversely affected."
Tourism is the third-largest earner of foreign exchange in Sri Lanka. The decline in tourist arrivals has hit the island nation's tourism industry in a big way.
Largely owing to the COVID-19 pandemic, the World Bank recently forecast Sri Lankan economy to contract by 3 percent this year as against a 2.4 percent estimated growth last year, whilst the IMF predicted the global economy to contract by 3 percent as well.
Follow our full coverage of the coronavirus pandemic here. | Sri Lanka set to enter into agreement with the RBI for a currency swap worth $400 million. the swap is aimed at boosting the island nation's foreign reserves. the government has placed critical economic measures to save the resources hit badly by the pandemic. the death toll from the pandemic has reached 7. a vaccine works by mimicking a natural infection. | Positive |
https://economictimes.indiatimes.com/markets/forex/rupee-surges-17-paise-to-76-03-against-us-dollar/articleshow/76508493.cms | Mumbai: The rupee on Monday appreciated 17 paise to close at 76.03 (provisional) against the US dollar in line with positive equity markets amid sustained foreign fund inflows.Besides, a weak US dollar against major global currencies also aided the rupee's upward movement, forex dealers said.At the interbank foreign exchange market, the rupee opened strong at 76.16 and it further rushed to touch a high of 75.98 during the trade.The domestic currency finally settled at 76.03 against the US dollar, registering a rise of 17 paise over its previous close of 76.20.On the equities front, the 30-share BSE benchmark Sensex was trading 442.58 points higher at 35,174.31 and broader Nifty rose 123.10 points to 10,367.50.Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 1,237 crore in the previous trading session on Friday, according to provisional exchange data.The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.31 per cent to 97.31.Brent crude futures, the global oil benchmark, rose 0.21 per cent to USD 42.28 per barrel. | rupee closes at 76.03 against the US dollar, up 17 paise from previous close of 76.20. rupee also rushed to a high of 75.98 during the trade. the 30-share Sensex is trading 442.58 points higher at 35,174.31. broader nifty rose 123.10 points to 10,367.50. | Positive |
https://www.financialexpress.com/lifestyle/health/moderna-fires-up-covid-vaccine-race-with-promising-early-results/2025588/ | Crucial data from experimental vaccines against the new coronavirus started streaming in as Moderna Inc. disclosed early results and new findings from the University of Oxford’s rival shot were reported to be imminent.
Moderna’s vaccine elicited antibodies in all people tested in an initial safety trial, federal researchers said Tuesday. Early results from tests of a vaccine Oxford is developing with AstraZeneca Plc will be published as soon as Thursday, according to a report on the ITV.com website.
New immunizations are reaching important milestones as the virus surges in the U.S. and other countries, continuing to stifle economies and claim lives. Governments are investing billions of dollars in the hope that safe and effective inoculations will aid a return to something resembling pre-pandemic life.
Investors are also eagerly following the vaccine race, although some drugmakers have said they’ll sell their products at cost during the pandemic. Moderna’s shares surged as much as 18% in U.S. trading despite a high rate of side effects among the 45 patients who got the shot, with three experiencing severe reactions.
While ITV.com referred to the Oxford results as “promising,” without providing any data, AstraZeneca shares climbed as much as 4.2% on the report. Other companies researching vaccines for the virus — including Pfizer Inc. and Merck & Co. — also rose, and optimism over Moderna lifted global equity markets.
“The good news is that this vaccine induced antibodies,” said Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases. “Not just any kind of antibodies, but neutralizing antibodies.”
Fauci, in a telephone interview, called the Moderna data “really quite promising.” Other experts sounded a note of caution over side effects.
More than half of participants who got the middle of three doses administered in the Moderna trial suffered mild to moderate fatigue, chills, headache and muscle pain. Also, 40% of people in the middle-dose group experienced a fever after the second vaccination. Three of 14 patients given the highest dose experienced severe side effects, but that dose is not being used in larger tests.
‘Adverse Events’
“Man, that is a lot of adverse events,” said Tony Moody, a doctor and researcher at the Duke Human Vaccine Institute. He said it would be “unusual” for a vaccine to have this rate of side effects.
On the plus side, Moody said that the antibody levels produced were “really encouraging.” The neutralizing antibody levels in the trial produced were equivalent to the upper half of what’s seen in patients who get infected with the virus and recover, according to the results published Tuesday in the New England Journal of Medicine.
Moderna’s stock has almost quadrupled in value this year on hopes that the company’s vaccine will gain rapid approval. The vaccine will move into a much larger late-stage trial later this month that’s likely to determine whether it’s fit for commercial use.
The Drugs and Vaccines That Might End the Coronavirus Pandemic
Although stimulating production of neutralizing antibodies doesn’t prove a vaccine will be effective, it’s considered an important early step in testing. The side effects reported weren’t severe enough in the majority of patients to preclude further testing, according to the report by researchers from the NIAID.
The vaccine news came as the pandemic continued thriving throughout the U.S. While some states that suffered this spring have managed to quell the contagion, fierce hot spots are breaking out in the Sun Belt.
45 Patients
Moderna’s initial results are from the first group of 45 patients who received the vaccine, called mRNA-1273. It evaluated three doses that were given in a two-shot regimen. The middle one was selected for use in the large final-stage study that is slated to begin on July 27th.
In the trial, participants received the two shots 28 days apart. After the first dose, all of them generated antibodies that bound to the coronavirus, but most did not yet produce antibodies capable of neutralizing the virus.
But all 42 people who got both scheduled doses of the vaccine generated antibodies capable of neutralizing the coronavirus, according to the study results. The final-stage trial will compare the vaccine to placebo shots in 30,000 healthy people at high risk of contracting Covid-19.
One significant limitation of the data is it includes information only from the first 45 patients in the study, all of whom were from age 18 to 55. Results from a second portion of the phase 1 trial that included older people — a key demographic for any Covid-19 vaccine, given the high death rate in older patients — are not available yet.
William Haseltine, a former Harvard Medical School researcher who chairs Access Health International, said the levels of neutralizing antibodies produced were “respectable” and possibly protective. But he said “the jury is out” on the vaccine’s safety. | moderna's vaccine elicited antibodies in all people tested in an initial safety trial. early results from tests of a vaccine Oxford is developing with AstraZeneca will be published as soon as Thursday. moderna's shares surged as much as 18% in u.s. trading despite a high rate of side effects among the 45 patients who got the shot. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/here-come-d-streets-biggest-fastest-and-most-consistent-wealth-creators/articleshow/66459459.cms | Agencies
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Ever wondered which stock is Dalal Street ’s equivalent of Virat Kohli (the most consistent) or Lewis Hamilton (the fastest) in terms of wealth creation?Just like run-machine Virat Kohli’s current form has earned him ‘Mr Consistent’ tag among his fans, shares of Titan Company have earned this tag with a 33 per cent price growth CAGR over last 10 years (2008-18).A 97 per cent surge annually over the five-year period has earned Indiabulls Ventures stock the fastest wealth creator tag. This can be called the equivalent of five-time F1 title holder Lewis Hamilton. HDFC Bank has emerged as the Hulk of D-Street. The private lender has toppled TCS to become the biggest wealth creation (in value terms) this year.These are the findings of the annual wealth creation study published by Motilal Oswal Securities. Raamdeo Agrawal, Joint Managing Director, has been publishing this study every year for last 23 years.Five years was the longest run of the top wealth creator Reliance Industries from 2007 to 2011 and TCS from 2013 to 2017. Overall, top 100 wealth creators on Dalal Street created Rs 44.90 lakh crore during 2013-18. The pace of wealth creation at 23 per cent compounded annually is double the 12 per cent growth for Sensex stocks, the study revealed.“For the past four study periods, benchmark indices have delivered muted 5-year return CAGR of 10-12 per cent. Yet, Wealth Creation has been robust in all these periods, reinforcing our pet take on market timing i.e. Forget markets, think stocks,” Agrawal said.Here’re some of the key details of the study:Motilal Oswal study suggests HDFC Bank has broken TCS’s five-year run as the biggest wealth creator, but the value migration run continues.Value migration means that value such as profit and market cap moves from outmoded business models to superior ones.“In IT, value migrated from Boston to Bangalore (i.e. developed economies to emerging economies). In banking, value is relentlessly migrating from state-owned banks to private banks. HDFC Bank is a key beneficiary,” the brokerage noted.Indiabulls Ventures has emerged the fastest money spinner for investors, delivery a return of 97 per cent annually over 2013-2018.It is followed by Dalmia Bharat, TVS Motor, HEG, Sterlite Technologies and Bajaj Finance, which delivered 73-81 per cent CAGR over the same period. A Rs 1,00,000 invested in Indiabulls Ventures in 2013 would have grown to Rs 17 lakh in 2018, at an average CAGR of 75 per cent.“Most of the fastest wealth creators have seen massive valuation re-rating. In some cases, their P/Es may have even reached unsustainable levels, leaving no margin of safety. In such situations of over-valuation, selling the stock(s) is the best way to lock in the supernormal returns. Overstaying in these winners runs the risk of eroding much of the gains,” Motilal Oswal observed.Titan Company has emerged the most consistent wealth creator by virtue of appearing among top 100 wealth creators in each of the last 10 studies. The stock has recorded the highest Price CAGR of 33 per cent over the 10-year period 2008 to 2018, fractionally ahead of Godrej Consumer. All the top 10 consistent performers are consumer-facing companies.Note: Motilal Oswal Securities ranks the top 100 companies in descending order of absolute Wealth Created, subject to the company's stock price at least outperforming the benchmark Sensex. These top 100 wealth creators are also ranked according to speed (i.e. price CAGR during the period under study). | shares of titan company have earned the fastest wealth creator tag. this can be called the equivalent of five-time F1 title holder Lewis Hamilton. HDFC Bank has emerged as the Hulk of D-Street. the private lender has toppled TCS to become the biggest wealth creator. this year. the pace of wealth creation at 23 per cent compounded annually is double the 12 per cent growth for Sensex stocks. | Positive |