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https://www.livemint.com/Money/rgetLRZifpaMM2mW2XUeDJ/Edelweiss-to-raise-Rs2000-crore-for-distressed-assets-fund.html | Mumbai: Edelweiss Alternative Asset Advisors Ltd, the alternative asset management arm of Edelweiss Group, on Tuesday said it plans to raise ₹ 2,000 crore for a fund called EISAF II Onshore Fund that would invest in distressed assets.
This includes a minimum amount of ₹ 1,000 crore and a greenshoe option to keep another ₹ 1,000 crore of inflows. “The fund’s investment mandate is centered around acquisition of non-performing debt from banks or financial institutions, funding companies for debt settlements, working capital financing and acquisition of stressed companies (debt & equity) under insolvency proceedings under the National Company Law Tribunal (NCLT)," Nitin Jain, chief executive officer, Global Wealth and Asset Management, Edelweiss Group said in a statement.
The Edelweiss Group currently has approximately ₹ 1.63 trillion of assets under management across various funds. It recently raised ₹ 2,000 crore for an infrastructure-focused fund called Edelweiss Infrastructure Yield Plus.
The distressed assets fund strategy at Edelweiss is headed by Amit Agarwal.
The new fund’s strategy is similar to Edelweiss’s previous distressed assets fund that the firm is raising from global investors, said Jain, adding the firm decided to launch a separate fund for India after receiving strong interest from domestic investors.
“We were earlier raising the money for this strategy only globally. We have raised $950 million globally and we will do a final close of that fund by August or September. But a lot of our wealth clients came back and asked to be allowed to participate in the same strategy. So we created a slice of that and we are raising exclusively $200-250 million (₹1,400-1,500 crore) of that only from our wealth clients," said Jain.
Jain added that domestic investors have become more sophisticated in the last three-four years and that is driving the demand for unique strategies such as distressed assets and other yield products.
“Indian investors have become very sophisticated and the general awareness has gone up substantially. Also, fixed income alternatives are very few now. Most options give you 7.5-8%. So, either you go to equity which is volatile, and you have macro and global issues. If you are looking to invest for the long term and looking for steadier but higher than fixed income returns, then these products become very interesting," he said.
The product’s market-neutral nature is also an attractive attribute for investors, said Jain.
“This has also created an interesting opportunity for investors to participate in market-neutral strategy, which offers equity-like upside with a lot of protection on the downside. It is not very affected by how the equity markets will do, it will not be very affected by where the interest rates will be three years down the line. This fits very well in most portfolios of sophisticated investors and family offices," he said.
As part of its strategy, the fund will look largely at working with existing managements to effect turn around of stressed companies.
“We don’t like to take complete control. We like to work with existing managements in most cases. But we augment the management. So, we do take control of cash flows, in terms of monitoring of cash flows, purchase and sales. In select cases, we might augment it further with external consultants, our own turnaround team," said Jain.
However, he added that in certain situations, the fund may take total control of assets.
Apart from distressed assets funds, Edelweiss also has a major presence in the stressed assets resolution space through its asset reconstruction company (ARC) business.
Ten-year-old Edelweiss Asset Reconstruction Company is India’s largest ARC with an AUM of over ₹ 44,100 crore.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | the fund would invest in distressed assets. it includes a minimum amount of 1,000 crore and a greenshoe option to keep another 1,000 crore of inflows. the distressed assets fund strategy at Edelweiss is similar to its previous distressed assets fund. the firm decided to launch a separate fund for India after receiving strong interest from domestic investors. | Positive |
http://www.financialexpress.com/money/top-10-mutual-funds-to-invest-in-2018-for-long-term-growth-from-sbi-blue-chip-fund-to-reliance-tax-saver-check-benefits/1011840/ | Mutual funds are the fastest-emerging and the safest investment option for the long-term creation of wealth. From longer-term perspective, it is advisable to create a portfolio of MFs using a top down approach, which includes first arriving at an optimal asset allocation based on one’s risk tolerance, and then selecting funds to match one’s risk reward investment plan. For the first-time investors who want to get exposure to the Indian equity markets, it would be advisable to invest through a Systematic Investment Plan (SIP) rather than making lump sum investments. SIP investment would ensure that even if the market corrects in the short term, the effect of rupee cost averaging will reduce the overall entry valuation of the MF portfolio as the investments would be made at regular intervals
Below is a list of mutual funds which have consistently provided superlative returns and do stand out as better investment choices. The time horizon that is recommended for these funds is between 5 and 7 years. Some of the schemes do consist of mid cap and small cap funds which are more riskier than their counterparts. However, the risk reward is attractive and they are ideal candidates for a portfolio of diversified mutual funds:
1. SBI Bluechip Fund
SBI Bluechip Fund is Five Star-rated fund, investing in blue chip companies like Infosys, Sun Pharma, Reliance Industries, Maruti Suzuki etc. The fund manager of SBI Bluechip Fund has 6 years of experience. The expense ratio of the fund is low.
2. Birla Sun Life Top 100 Fund
Birla Sun Life Top 100 Fund has invested in 73 shares. Major stock holdings of this fund are in Infosys, HDFC bank, Larsen & Toubro and ICICI bank. All these blue chip stocks are performing very well and are expected to perform well in the future.
3. Aditya Birla Sun Life Frontline Equity
This large cap fund is one of the most consistent performers. The portfolio of the fund is heavyweight on the financial sector and it has helped it in getting good returns.
4. Reliance Tax Saver Fund
Reliance Tax Saver Fund is an open ended ELSS. The fund seeks to maintain balance between large-cap and mid-cap companies. This fund looks to invest in companies with high growth potential over the next 2 to 3 years. There’s also an allocation to the MNCs and high conviction mid-cap companies.
5. HDFC Balanced Fund
This fund remains a long-term performer in the category. HDFC Balanced Fund remains a good consistent performer in the category, especially for the first time investors.
6. ICICI Prudential Balanced Fund
This is one of the best diversified funds. This fund beats all its peers and has provided 18% annualized returns in the last 5 years compared to the balanced fund category in the similar period.
7. SBI Magnum Multicap Fund
Among the multicap schemes, SBI Magnum Multicap has distinguished itself as a steady performer with a reasonably good performance record.
8. Franklin India Smaller Companies
Small cap funds tend to be highly volatile, but this fund has managed to have standard deviation lower than the category by 2% in both 3 years and 5 years. It invests in low capital intensive business having high growth potential.
9. Mirae Asset Emerging Bluechip Fund
This fund has beaten all its peers and provided 31% annualized returns in 5 years. This midcap fund has performed in various market cycles, making this as a unique fund.
10. L&T Emerging Businesses Fund
The fund invests in emerging businesses, typically in early stages of development, which have the potential to become future giants and deliver higher alpha.
(By Rahul Agarwal, Director, Wealth Discovery. Although due care has been exercised by the writer while selecting these funds, readers are advised to consult their financial adviser before investing in any of these funds) | mutual funds are the fastest-emerging and the safest investment option for the long-term creation of wealth. from longer-term perspective, it is advisable to create a portfolio of MFs using a top down approach. for the first-time investors who want to get exposure to the Indian equity markets, it would be advisable to invest through a systematic investment plan (SIP) | Positive |
https://economictimes.indiatimes.com/news/economy/indicators/shared-economy-in-india-to-be-usd-2-billion-industry-by-2020-end-maple-capital/articleshow/74337786.cms | New Delhi: Shared economy in India is poised to become a USD 2 billion industry by the end of the year, a report by Maple Capital Advisors said on Thursday. Also, such services attracted about USD 3.5 billion worth of private equity, and USD 262 million in mergers and acquisitions (M&A) between 2015-19, the report titled 'Shared Economy - India Story' said.The sector, predominantly driven by shared mobility, co-working, co-living and furniture rentals, is pegged to be an about USD 2 billion industry in the organised-end and growing in double digits, it said.In 2019, the segment was estimated to be about USD 1.5 billion in size in India.Shared economy includes segments like co-working (Awfis, WeWork India ), co-living (Stanza Living, OYO Life, Oxford Caps), shared mobility (Uber, Ola, Shuttl ) and furniture rental (Furlenco, Rentomojo .)"High mobile penetration, high millennial concentration, and an aspirational population, Asia has highest willingness to use shared assets. India mirrors Asia trends in these aspects and is thus, poised for high growth and adoption of shared services," it added.Maple Capital Advisors Managing Director Pankaj Karna said India is at the cusp of a shared economy revolution."We are already witnessing phenomenal growth in this segment with both international companies and home-grown start-ups vying for market share. Even as the space is nascent over USD 3.7 billion has been invested in this space," he said.Karna added that this is expected to accelerate on the back of compelling demand and unit economics. | the sector is predominantly driven by shared mobility, co-working, co-living and furniture rentals. it is estimated to be about USD 1.5 billion in size in india in 2019. the report by maple capital advisors said the sector is poised for high growth and adoption of shared assets. it said that such services attracted about USD 3.5 billion worth of private equity, and USD 262 million in mergers and acquisitions between 2015-19. | Positive |
https://www.financialexpress.com/economy/india-received-usd-20-billion-in-fdi-during-covid-foreign-secretary/2084162/ | India has received over USD 20 billion in FDI amid the coronavirus pandemic, Foreign Secretary Harsh Vardhan Shringla said on Tuesday, showcasing the country as one of the most attractive destinations for investment globally.
In a virtual address at a CII event in the UK, the foreign secretary highlighted various structural reforms undertaken by India in even previously restricted sectors such as space, defence and atomic energy for greater private participation.
On ties between India and the UK, he said a comprehensive roadmap is being formulated to further strengthen the strategic partnership between the two countries in the next decade.
“We see the UK as a key partner in Europe for a wide range of sectors including, trade, investments, defence, science and technology. Prime Ministers Narendra Modi and Boris Johnson are committed to further strengthen our strategic partnership in the next decade, and a comprehensive roadmap for this is being formulated,” he said.
Shringla said both the countries are in a “unique position” to forge a “truly global partnership” and should not miss this opportunity.
The foreign secretary also invited British companies to invest in India, taking advantage of the country’s economic reform measures.
“The government of Prime Minister Narendra Modi has launched several historic reforms to improve the ease of doing business in India in the last six years. Today, India is one of the most open economies in the world. We have put in place a transparent and predictable tax regime,” he said.
Shringla talked extensively about implementation of various “ambitious” initiatives such as rolling out of the Goods and Services Tax, the Aadhaar biometric project, “groundbreaking reforms” in the agriculture sector and creation of infrastructure for railways, ports and airports.
“The success of the reforms launched by the Government is evident in the numbers. Even during the pandemic, we have received over USD 20 billion of FDI this year. While the global FDI declined by one per cent in 2019, FDI into India rose by 20 per cent in the same period,” he said.
The foreign secretary said several global technology majors have announced significant investments in India including USD 10 billion by Google, USD 5 billion by Facebook and USD 1.2 billion by Mubadala, the UAE’s Sovereign Wealth Fund.
Talking about India-UK economic partnership, he said the bilateral trade has been on an upward trajectory and touched 24 billion pounds in 2019 and that the country is the sixth largest investor in India with investments totalling USD 28.21 billion.
“The COVID-19 pandemic has created severe economic challenges for both our countries. We can overcome these challenges by working together to create new opportunities for our business and industry,” said Shringla.
He said under the ‘Aatmanirbhar Bharat Abhiyaan’ or self reliant India campaign, India has rolled out a stimulus package of about USD 270 billion for the economy.
The foreign secretary said research and development for vaccines for COVID-19 is a crucial area where there is potential for collaboration between India and the UK.
“Serum Institute of India is already working with the Oxford University-Astrazeneca on their vaccine project. I talked about the role played by India’s pharmaceutical sector in meeting the global demand for essential medicines during the pandemic,” he said.
“We are certain that our companies will play a similar role in the development of an affordable vaccine for COVID-19,” he added. | foreign secretary says country is one of the most attractive destinations for investment. he highlighted various structural reforms undertaken by india in space, defence and atomic energy. he said a comprehensive roadmap is being formulated to strengthen ties between the two countries. both countries are in a "unique position" to forge a "truly global partnership". | Positive |
https://www.moneycontrol.com/news/world/apple-music-expands-to-52-new-countries-in-global-services-push-5172051.html | Apple Music is being expanded to 52 additional countries and territories in a push to broaden service revenue streams for the iPhone maker, the company said Tuesday.
The move, part of the biggest expansion of Apple services in a decade, brings Apple Music to a total of 167 markets, including 25 new African countries added Tuesday.
Costs will range from as low as $3 to $11 monthly, with a six-month free trial period in the new countries.
The expansion ramps up the global presence of Apple Music, which has some 60 million subscribers, in its duel against market leader Spotify, which has more than 120 million paid users but is available in fewer markets around the world.
Apple at the same time announced an expansion to 20 new markets of its other services, including its App Store, the Apple Arcade gaming service, Apple Podcasts and iCloud.
With the rollout, Apple services will be available in 175 countries around the world. Until now, Apple customers in parts of the world had access to some free apps and services for their devices without an opportunity for paid subscriptions.
Music and other services will be available with interfaces in at least 40 languages supported by Apple.
The California tech giant has been shifting its focus away from the iPhone -- the longtime revenue and profit leader for the company -- to what is considered a steadier financial stream in digital content and services including music, digital payments and apps.
Amid a softer smartphone market, Apple's iPhone accounts for only around half of its revenues, while new services and accessories are showing gains.
"We're delighted to bring many of Apple's most beloved services to users in more countries than ever before," said Oliver Schusser, Apple's vice president for music and international content.
"We hope our customers can discover their new favorite apps, games, music and podcasts as we continue to celebrate the world's best creators, artists and developers." Apple's iCloud and other services were being expanded to eight additional African countries, two in the Asia-Pacific region, five in Europe, two in the Middle East and three in Oceania.
Apple has been working for some time on the expansion, but the move comes as consumers around the world are facing lockdowns and spending more time on their devices.
Apple Music holds about 19 percent of the global music streaming market, compared with 35 percent for Spotify and 15 percent for Amazon, according to Counterpoint Research.
The streaming music service has some 60 million songs and offers curated playlists along with a Beats 1 radio station.
Apple Podcasts has more than one million shows in over 100 languages. Apple's iCloud service is free but allows users to upgrade for extra storage.
The Arcade gaming service launched last year includes ad-free original titles designed for Apple devices.
Last week, Apple unveiled a new entry-level iPhone, aiming to appeal to consumers facing a suddenly bleak economic backdrop.
The updated iPhone SE will start at $399, or less than half the price of its flagship devices.
While the iPhone had been in the works for months, analysts said the launch appeared to be well-timed amid a pandemic-induced economic slump that has hammered the smartphone market and hit consumer sentiment. | apple is expanding its music service to 52 countries and territories. the move is part of the biggest expansion of services in a decade. the move brings Apple Music to a total of 167 markets, including 25 new african countries. the expansion comes as consumers around the world are facing lockdowns. iCloud and other services were being expanded to eight additional African countries. | Positive |
https://www.moneycontrol.com/news/world/donald-trump-says-gdp-growth-could-be-in-the-5s-next-quarter-2818321.html | Answer: Donald Trump.
US President Donald Trump thinks that the gross domestic product growth in the next quarter "could be in the 5s" — that is, higher than 5 percent — as he hosts business leaders at his Bedminster, New Jersey, golf resort.
Trump made the bold prediction today at a dinner with leaders from FedEx, Mastercard, Boeing, Fiat Chrysler, PepsiCo and other companies.
Trump is also hailing his own economic and trade policies, saying he is "taking our economy to incredible new heights" in spite of fears of damage from the escalating trade disputes he has provoked.
The government reported last month that the economy grew at an annual rate of 4.1 percent in the second quarter, the fastest pace in nearly four years. | president Donald Trump says gdp growth in next quarter "could be in the 5s" he is hosting business leaders at his bedminster, new jersey, golf resort. he hails his own economic and trade policies. the government reported last month that the economy grew at an annual rate of 4.1 percent. the fastest pace in nearly four years. | Positive |
https://www.businesstoday.in/sectors/auto/mercedes-benz-starts-booking-for-gle-suv-to-be-launched-in-india-next-year/story/386974.html | German premium car maker Mercedes-Benz on Saturday announced opening of booking for its all-new SUV GLE, which is expected to be launched in India early next year.
The company in a statement also claimed it delivered 600 cars to customers across markets on Dhanteras, which is considered auspicious for buying gold, silver and other valuables and mainly celebrated in Northern and Southern India.
Owing to an unprecedented demand for the GLE, Mercedes-Benz has already sold out its current stock of this SUV three months ahead of the plan and, therefore, now has opened the booking for its upcoming refreshed version, the company said. The all-new GLE SUV is expected to be launched in the domestic market before the next edition of the Auto Expo in 2020 it added. Mercedez-Benz has sold some 13,000 GLE cars since the off-roader's entry in the Indian market, the company said.
The festive period saw unprecedented demand for Mercedes-Benz vehicles across the country, especially in Northern region of Delhi NCR, Punjab, and in Western regions of Mumbai, Pune and Gujarat, it said adding of the 'record' 600 cars sold on the Dhanteras day, almost 50 per cent (over 250 units) were delivered to customers in Delhi NCR alone.
"The festive season has been satisfactory for us and we are glad to see an overwhelming response to our products from across markets. We are excited to see the response to the current GLE, which sold out three months ahead of the plan," said Martin Schwenk, managing director and chief executive, Mercedes-Benz India.
The impressive number of deliveries during the current festive season reiterates the increasing customer confidence, he said. It may be recalled that the German auto major sold over 200 units of its various models in a single day on the occasion of Dussehra and Navratri on October 9.
Also read: Tata Sons to infuse Rs 6,500 crore in Tata Motors to boost investor confidence | german automaker says it has sold 13,000 GLE cars since its entry in the Indian market. the festive period saw unprecedented demand for the off-roader. almost 50 per cent of the 600 cars sold on the festive day were delivered to customers. the festive period is considered auspicious for buying gold and silver. the all-new SUV is expected to be launched in the domestic market in 2020. | Positive |
https://www.businesstoday.in/technology/news/apple-xiaomi-wearable-market-growth-q1-2018-canalys/story/277585.html | Driven by the strong demand for health-centric devices, the wearable market has witnessed a significant growth in the first quarter of 2018. The wearable band shipment grew by 35 per cent, year on year, in Q1 2018, reports Canalys. This includes both smartwatches and basic fitness bands.
While smartwatches accounted for 80 per cent of the wearable band revenue, up from 74 per cent during the same time last year, the shipped units were accounted at 43 per cent.
Canalys reports that Apple and Xiaomi are the leaders in smartwatches and wearable bands, respectively, with Apple shipping 3.8 million Apple Watches and Xiaomi shipping 3.7 million units in the first quarter of this year.
Of the 20.5 million wearable bands shipped in Q1 2018, the top five brands contribute to 60 per cent of the shipments. Apple and Xiaomi enjoy 18 per cent share each, closely followed by Fitbit at 11 per cent, Garmin at 7 per cent, Huawei at 6 per cent. The rest 40 per cent is shared by various fitness wearable brands.
"Key to Apple's success with its latest Apple Watch Series 3 is the number of LTE-enabled watches it has been able to push into the hands of consumers. Operators welcome the additional revenue from device sales and the added subscription revenue for data on the Apple Watch, and the list of operators that sell the LTE Apple Watch worldwide is increasing each month," says, Canalys Senior Analyst Jason Low.
Apple represents 59 per cent of the total cellular-enabled smartwatch market. He says, "While the Apple ecosystem has a strong LTE watch offering, the lack of a similar product in the Android ecosystem is glaring. If Google decides to pursue the opportunity with a rumoured Pixel Watch, it would jump-start much-needed competition in this space."
Launched in select global markets in September last year, Apple has just recently launched the Apple Watch Series 3 Cellular in India. It supports electronic SIM that makes the watch capable of calling, messaging, receiving email and other notifications on its own, without being dependent upon the Bluetooth connectivity with the iPhone or WiFi connectivity.
Garmin has also focused on its GPS expertise and is catering to endurance athletes and outdoor enthusiasts. With the new Fitbit smartwatch launch, the company too is racing to get its user upgrade to a smartwatch.
"Fitbit is betting on its newly launched Versa smartwatch, while introducing female health tracking to expand its addressable market," says Vincent Thielke, Research Analyst at Canalys.
According to the latest Canalys estimates, smartwatches (including the Blaze) made up 24 per cent of Fitbit's wearable band shipments. "Collaboration between Fitbit and Google on the Cloud Healthcare API will help Fitbit get into healthcare systems, and that is a positive move. But Fitbit's immediate cause for concern will be satisfying investors that it is selling more wearables, something it may not be able to do," adds Thielke. | the wearable band shipment grew by 35 per cent, year on year, in the first quarter of 2018. smartwatches accounted for 80 per cent of the wearable band revenue, up from 74 per cent during the same time last year. of the 20.5 million wearable bands shipped in Q1 2018, the top five brands contribute to 60 per cent of the shipments. | Positive |
https://www.moneycontrol.com/news/business/economy/despite-lockdown-chhattisgarhs-rural-economy-strong-govt-5234551.html | Despite the lockdown, the rural economy of Chhattisgarh remains strong due to extensive works started under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) across the state, a government official has said.
Labourers have been taking all precautions against coronavirus by wearing face masks or covering their faces with scarves, maintaining physical distance and regularly washing their hands while working on the field, he said.
Chhattisgarh has so far recorded 59 COVID-19 cases. These cases have been reported from seven out of the total 28 districts of the state.
"In April alone, 10.24 lakh MGNREGA job-card holder families were provided employment of 1.23 crore man-days. Wages worth Rs 548.41 crore have been paid to labourers in April for the ongoing and previous works," a state public relations official said.
As per statistics released by the Union Rural Development Ministry on April 29, Chhattisgarh is leading in the country in terms of providing employment to villagers under MGNREGA during the lockdown, he said.
State Panchayat and Rural Development Minister T S Singh Deo had instructed to start works extensively under MGNREGA in a bid to save the rural economy and protect livelihood of rural people while complying with precautionary protocols to check the spread of COVID-19, he said.
Due to the activeness of field staff and village sarpanchs (village heads), the number of workers employed under MGNREGA increased from 57,536 on April 1 to 19,85,166 on April 30, the official said, adding that the process of payment of wages was being done immediately.
"MGNREGA is not only providing wages to villagers, but also making them free of employment concerns during this period of crisis," he added.
Some migrant labourers who recently returned to their native villages in the state from different parts of the country tested positive for COVID-19.
Therefore, all workers under MGNREGA have been advised to strictly follow the safety protocols to protect themselves from contracting the infection, the official said.
Besides, officials are regularly inspecting the workplaces to ensure protocols are strictly followed, he said.
Chhattisgarh has so far reported 59 COVID-19 cases. No death due to the disease has been reported in the state.
Till now, 36 patients have been discharged after recovery, according to official figures. | despite the lockdown, the rural economy of Chhattisgarh remains strong. labourers have been taking all precautions against coronavirus. 59 COVID-19 cases have been reported from seven out of the total 28 districts. no death due to the disease has been reported. a spokesman for the state says the state is leading in providing employment. | Positive |
https://www.moneycontrol.com/news/business/lic-board-likely-to-approve-idbi-bank-investment-today-2716191.html | live bse live
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The board of Life Insurance Corporation of India (LIC) will meet on Monday to discuss and approve a plan to own 51 percent stake in state-owned IDBI Bank.
The insurance regulator has already given its go-ahead for the proposal. Sources said that LIC's board of directors is also likely to approve the deal.
The 12-member board comprises of LIC chairman VK Sharma and its four managing directors as members.
Apart from them, the board also features representatives of the government, including from the department of financial services and the department of economic affairs.
"The contours of the deal including the structure, timeline, investment will be decided today," a source told Moneycontrol.
While the board has already been apprised of the proposal, it will meet formally today to discuss the deal.
LIC will own 51 percent in IDBI Bank after the deal and will be the bank's largest shareholder.
Insurance Regulatory and Development Authority of India has approved the deal on the condition that the life insurer will gradually bring its stake in the bank down after a few years.
The aim of the deal is to infuse capital into the bank, which is facing a severe challenge in the form of mounting bad debt.
After the LIC board's approval comes through, the deal will need to be approved by the Union cabinet, capital markets regulator Securities and Exchange Board of India, and the Reserve Bank of India.
Sources said that LIC will take at least 5-7 years to help the bank in its recovery process, after which it will reduce its stake considerably.
IDBI Bank's net loss for the March quarter widened to Rs 5,662.76 crore on weakening asset quality and a rise in provisions.
During the quarter, the lender's provisions for non-performing assets rose 77.9 percent year on year to Rs 10,773.30 crore. | life insurance corporation of india (LIC) to approve plan to own 51 percent stake in IDBI Bank. LIC will own 51 percent in IDBI Bank after the deal and will be the bank's largest shareholder. the aim of the deal is to infuse capital into the bank, which is facing a severe challenge. after the LIC board's approval comes through, the deal will need to be approved by the union cabinet. | 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.financialexpress.com/infrastructure/railways/tirupati-station-redevelopment-indian-railways-to-provide-5-star-like-experience-with-premium-lounge-pics/1443064/ | Indian Railways is all set to give a 5-star hotel like experience to passengers! In the coming days, people travelling to Balaji Temple via train can rest at ‘ATITHI’, a premium lounge at the Tirupati railway station, which will be inaugurated soon. With the launch of this lounge, passengers especially devotees travelling to Balaji Temple, will be able to wait or rest comfortably. Also, they will be able to enjoy many other modern facilities. Recently, the Railway Minister Piyush Goyal through a tweet said that the Tirupati railway station, which falls under the South Central zone of Indian Railways, will undergo a major redevelopment soon.
Goyal in his tweet, stated that the futuristic plans for Tirupati railway station, which will serve as a benchmark for other railway stations across the country will include drop off facility, hotel block, security check, waiting area for passengers, food court, departure concourse, and newly developed platform. In addition to these features, railway station plaza, as well as a multiplex, has also been proposed.
Recently, Minister of State of Railways, Rajen Gohain in a written reply to a query asked in Rajya Sabha stated that the Modi government has approved the proposal of the national transporter for redevelopment of railway stations through simplified procedures and for longer lease tenure by IRSDC (Indian Railway Stations Development Corporation Limited) as nodal agency. Therefore, all railways stations across the country have been entrusted to the corporation for undertaking the techno-economic feasibility studies. On the basis of the outcome of the feasibility studies, the railway stations are likely to be taken up for redevelopment, in phases, he informed.
The redevelopment of railway stations is being planned by the Railway Ministry by leveraging commercial development of land and air space in and around the station premises. With this initiative, the railway stations will also be provided with several state-of-the-art amenities for passengers. Also, according to a press release issued by the Cabinet a few months ago, the redevelopment of railway stations will have a multiplier effect in the economy with increased job creation as well as improved economic growth. | the 'ATITHI' lounge will be inaugurated soon at the Tirupati railway station. passengers will be able to rest at the lounge and enjoy other facilities. the redevelopment of railway stations will have a multiplier effect in the economy. the station will also be provided with several state-of-the-art amenities. the plans include drop off facility, hotel block, security check, waiting area for passengers, food court, departure concourse, and newly developed platform. | Positive |
https://www.moneycontrol.com/news/business/markets/high-dividend-yield-stocks-perform-better-as-real-interest-rates-fall-icici-securities-6146601.html | Rising global liquidity, declining fixed-income yields and real interest rates are increasing the attractiveness of dividend yield stocks, the brokerage firm ICICI Securities said in a note on November 23.
"High dividend yield stocks appear attractive as their yields are now comparable to other fixed-income instruments while having the added advantage of ‘inflation hedge’ characteristics of stocks as an asset class," the brokerage firm said.
ICICI Securities highlighted that the Nifty's price return CAGR has been 12.6 percent over the past 20 years, while total return (based on dividend reinvestment) has been 14.3 percent.
This extra return from reinvested dividends, as per the brokerage firm, is three times the original invested amount—Rs 10 lakh invested in January 1999 in the Nifty index has turned into Rs 37 lakh solely on the back of reinvestment of dividends, while capital appreciation gain is Rs 1.08 crore.
The brokerage said a look at rolling one-year returns indicates the bulk of the outperformance of the Nifty Dividend Opportunities 50 index was during the FY10-12 period when real yields remained negative persistently.
"Over the past one year, as interest rates continued to dip and inflation rose, the real interest rate has dipped into negative territory, which improves prospects for high dividend yield stocks," ICICI Securities said.
As per ICICI Securities, among the equity benchmark indices, the CPSE and the Dividend Opportunities 50 index have the highest dividend yields at 6 percent and 3.65 percent, while the lowest is offered by growth sectors 15 and the Bank Nifty at 0.99 percent and 0.4 percent, respectively.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol advises users to check with certified experts before taking any investment decisions. | rising global liquidity, declining fixed-income yields and real interest rates are increasing the attractiveness of dividend yield stocks. ICICI Securities highlighted that the Nifty's price return CAGR has been 12.6 percent over the past 20 years. the extra return from reinvested dividends, as per the brokerage firm, is three times the original invested amount. ICICI Securities said the bulk of the outperformance of the Nifty Dividend Opportunities 50 index was during the FY10-12 period. | Positive |
https://economictimes.indiatimes.com/markets/commodities/news/gold-jumps-past-1700-level-for-first-time-in-7-years-on-coronavirus-fears/articleshow/74543927.cms | The festive month of Diwali brought a much-needed boost in online shopping after a muted start to the year in the first half. Ecommerce platforms, retailers and online sellers reported a steady uptick in sales with categories like electronics, food and grocery, and jewellery reporting double digit growth over last year.
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.
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.
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Top Trending Stocks: Sensex Today Live | ecommerce platforms, retailers and online sellers reported a steady uptick in sales. categories like electronics, food and grocery, and jewellery reported double digit growth over last year. Sensex and nifty gained over half a per cent in the special 60-minute muhurat trading session on Sunday evening. Sensex and nifty are the most traded stocks in the world. | Positive |
https://economictimes.indiatimes.com/industry/services/advertising/japanese-advertising-company-buys-majority-stake-in-fho-communications/articleshow/64595357.cms | MUMBAI: Japanese advertising company Daiko Advertising has acquired a majority stake in New Delhi-based creative advertising firm From Here On Communications (FHO). Post acquisition, the company will be re-branded as Daiko FHO.Gullu Sen and Rajesh Aggarwal, managing partners of FHO will continue to manage Daiko FHO in the same role. Hiroshi Ochiai, president, Daiko Advertising, said, “We found FHO to be the most compatible partner, as they have a lot of experience handling not only Japanese brands, but other big brands as well.”Founded in 2011 by former Dentsu executives — Sen and Aggarwal — FHO has grown at a fast pace as an independent full service agency, specialising in brand strategy, above the line and digital advertising. Some of the clients include Yamaha, Tilda, Emaar, American Standard, Kenstar, MensXP, Reliance, Videocon, Escorts, ET Money, and Prince Pipes among others.“We see this as a great opportunity to learn from each other, and explore new dimensions in communication,” Sen said.Aggarwal added, “This will allow us to use international tools and learnings, to take Daiko FHO to the next level. We will now look at expanding into new markets.” Osaka-headquartered Daiko Advertising and FHO did not disclose the financial details of the deal.For Daiko, the acquisition will mean strengthening its base in India and expanding in Asia. | daiko advertising has acquired a majority stake in creative advertising firm from here on communications. the company will be re-branded as Daiko FHO. the acquisition will mean strengthening its base in India and expanding in Asia. some of the clients include Yamaha, Tilda, Emaar, American Standard, Kenstar, MensXP, Reliance, Videocon, Escorts, ET Money, and Prince Pipes. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/india-inc-pays-rs-36000-crore-as-dividend-before-tax-kicks-in/articleshow/74941691.cms | Mumbai: Private Indian companies paid Rs 36,000 crore as dividends between February 1 and March 31 to avoid extra tax following the change in dividend tax treatment.The payouts may have helped many promoters to boost cash flows or ensure cover for pledged shares through the unprecedented market mayhem. About 480 companies including PSUs have declared a total dividend of Rs 76,000 crore after the budget.Of this, Rs 40,000 crore was declared by the public sector companies whereas the remaining Rs 36,000 crore was by non-government public companies. The government received nearly Rs 25,000 crore by way of dividend, while promoters of non-PSU companies got Rs 20,000 crore.Various companies with high promoter holding announced interim dividends in the last two months as the new budget proposal, which makes dividend income taxable up to 43% in the hands of the recipient, takes effect from April 1.The rush to pay dividends to shareholders before the new budget proposal helped several promoters of smaller companies as well as some of the affluent investors to increase their stake or to give additional margin for their pledged shares, said market participants.“Although most promoters are already leveraged and unable to raise additional leverage given the current market conditions and lack of liquidity in the financial markets, interim dividends gave them some cash flows,” said Sanjiv Bhasin, director, IIFL. “A few have increased their stake while some managed to maintain their ownership by providing additional margins.”Since March 1, promoters of over a dozen companies have been forced to let go of their shares that were pledged as many of them struggled to raise money in time to top up the value of their collateral in the recent market crash.Lenders have invoked promoters’ shares in companies such as Future Retail, Future Consumer, Just Dial, Asian Hotels (North), Reliance Capital, Eveready Industries, Reliance Home Finance, and Mandhana Retail in the past one month. However, promoters of more than 50 companies managed to bring in fresh shares to make up for the decline in collateral.“The flurry of interim dividends has provided cash flows to promoters to restructure their shareholdings,” said Mehul Savla, partner, Ripplewave Equity Advisors.Since March 1, promoters of nearly 300 companies have increased their stake by buying from the open market through stock exchanges. | about 480 companies including PSUs have declared a total dividend of Rs 76,000 crore. Rs 40,000 crore was declared by the public sector companies. the remaining Rs 36,000 crore was by non-government public companies. the government received nearly Rs 25,000 crore by way of dividend. promoters of smaller companies and some of the affluent investors have increased their stake or gave additional margin for pledged shares. | Positive |
https://www.livemint.com/Money/tkSw9tklyMyeuV1Nm7oz5I/Sebi-extends-trading-hours-for-commodity-markets.html | Mumbai: The Securities and Exchange Board of India ( Sebi ) allowed exchanges to start commodity trading an hour earlier to increase participation of different stakeholders, the market regulator said in a statement on Friday.
The commodity markets can open at 9 am local time (0330 GMT), instead of 10 am now, the market regulator said.
The closing time for agriculture commodities has also been extended by 4 hours to 9 pm, it said.
The commodity exchanges had requested market regulator to consider extending the trading hours considering the influence of overseas market on local prices.
This story has been published from a wire agency feed without modifications to the text.
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Topics | the commodity markets can open at 9 am local time (0330 GMT), instead of 10 am now. the closing time for agriculture commodities has also been extended by 4 hours to 9 pm. the commodity exchanges had requested market regulator to consider extending the trading hours considering the influence of overseas market on local prices. the commodity markets can open at 9 am local time (0330 GMT), instead of 10 am now. | Positive |
https://www.financialexpress.com/opinion/india-us-relationship-rough-weather-better-environment/2124839/ | It is too early to say how India’s relations with a Biden administration will pan out, especially since the contours of its policy towards Chinese expansionism are unclear—many suggest a more accommodative policy—but it does seem likely India is not going to find a policy environment that is as alive to its sensitivities as the Trump government was; certainly a decision to revoke the Donald Trump ‘Muslim’ ban—Trump had banned travel from several Muslim majority countries including Iran and Syria—suggests that attempts to portray India as anti-Muslim may get more traction and that more uncomfortable questions will be asked about Kashmir.
While many believe Republican regimes are friendlier to India than Democratic ones, how this pans out really depends on India’s own pro-growth and investment policies. Not only was India growing at 7-8% in the days George Bush offered the nuclear deal, with investment levels at 38-39% of GDP levels at that point, India’s potential looked bright.
GDP will not just contract this year, potential growth over the next few years looks a lot less robust, and India’s treatment of several large global majors suggest a less rosy future; India’s inability to sign even a limited trade deal with the Trump administration has to be seen as a negative.
The immediate preoccupations apart, a lot of the excitement about a Biden administration is the promise of correcting Trump’s climate-scepticism. How much Biden is able to push the agenda, of course, will depend upon whether, by the end of January, the Democrats are able to wrest a majority in the Senate; that Florida, one of the states most vulnerable to climate change, went to Trump suggests climate change isn’t a hot-button issue for most of the country.
Biden has promised the US will be rejoining the Paris Accord on the first day of his presidency and that his administration will also be looking at injecting $2 trillion as a “green stimulus” to ease the US into a low-emission economic growth trajectory; given this will require higher taxes in other areas and tighter emission norms will hit large parts of the economy, delivering on this is not going to be easy, more so since not all Democrats are convinced about this either.
As president, though, Biden could make a start using the executive route; he could start with rolling back the dilution and overturning of nearly 100 environmental regulations that the Trump regime affected including the one that asked every federal agency to dismantle their climate policies.
Biden is pledging to cut US emission to net-zero by 2050 and clean up the power sector by 2035. If he is able to deliver on this, taken together with China’s pledge to reach carbon neutrality by 2060—EU targets 2050 for net-zero status—the US achieving the Biden target could pull global warming down to 2.3-2.4oC above the pre-industrial levels by the end of this century, as per the Climate Action tracker.
And, with the US willing to join China, the largest current emitter, and India, another top emitter (though a much smaller per capita emitter) on climate action leadership, chances of reaching the Paris accord ideal, of limiting global warming to 1.5oC would rise meaningfully, as per an expert cited in a Financial Times report. | a lot of the excitement about a biden administration is the promise of correcting Trump’s climate-scepticism. as president, biden could be a key player in the country’s economic recovery. he could also be a key player in the global economy. he could also be a key player in the global economy. he could also be a key player in the global economy. | Positive |
https://economictimes.indiatimes.com/mf/analysis/banking-stocks-may-continue-rally-on-fresh-foreign-flows/articleshow/68459015.cms |
MUMBAI: Banks have spearheaded the pre-election rally in the Indian stock market, with the Bank Nifty gaining almost 6 per cent, or 1,600 points, to record highs during last week in which the gauge posted its sharpest weekly advance in the past couple of years.Traders are increasing bullish positions on the bank index and stock futures and options contracts — mainly Axis Bank and ICICI Bank — on expectations that these stocks will benefit the most in the wake of renewed foreign portfolio inflows. Financial services have the highest weight of 37.18 per cent on the Nifty. So, when overseas exchange traded funds pump money into a basket of Nifty index stocks, banks benefit the most.The Nifty gained 3.5 per cent last week.The banking index has rallied 10 per cent in the March derivatives series, but analysts believe there is more steam left in these stocks.The surge in open interest or outstanding positions in Bank Nifty shows the high level of interest for banking stocks.“The open interest in Bank Nifty has swelled sharply along with the up-move and the current open interest in the index is the highest seen since August of last year (2018), suggesting a long build-up. In the last week itself, more than 30 per cent open interest was added in the banking index,” said ICICIdirect in a note on Friday.Analysts at ICICIdirect do not rule out a round of profit-booking after the sharp rise in banking stocks. The ratio of Bank Nifty to Nifty is also at its all-time high of 2.57 and could cool off to 2.55 in the coming sessions, said ICICIdirect.“However, this decline should be utilized to buy the banking index once again,” said ICICIdirect. Most analysts recommend buying corporate banks such as Axis Bank and ICICI Bank, and are bullish on State Bank of India among the public sector banks.The Bank Nifty index futures have seen an addition of 123 per cent in open interest since the beginning of the series.“There is a left-out feeling in the market; so the momentum could continue until the index is above 28,888 levels. It could extend its move to about 30,000 and dips are likely to be bought into,” said Chandan Taparia, derivative analyst at Motilal Oswal.Taparia is the most bullish on ICICI Bank and believes the stock could rise to Rs 420 in the near term and expects State Bank of India’s shares to touch Rs 310.This would mean a potential gain of 6 per cent in ICICI Bank and 4 per cent rise in SBI shares. The Bank Nifty ended up 1.6 per cent at 29381.45 on Friday after scaling a record high of 29520.70 during the session.“The rally in banking stocks is mostly on account of FII flows returning to emerging markets, especially India. FIIs have been the biggest investors in Indian private banks, so it is natural that they will buy them,” said Digant Haria, vice-president, research at Antique Stock Broking.Some believe that it is not just buying by foreign investors into private banks that has made the sector a leader in the market rally. Concerns around non-performing assets (NPAs) have come down as banks have reported lower slippages and strong recoveries in the quarter ended December. Banks are also benefiting from the liquidity issues faced by the nonbanking finance companies.Abhimanyu Sofat, head, research at IIFL, said ICICI Bank and Axis Bank could see strong profit growth due to lower slippages.“A lot of PSU banks are likely to shift to profits from losses over the next few quarters as money comes from Essar-kind of deals. Growth in the banking sector is going to be phenomenal over the next twothree quarters because of lower NPAs,” said Sofat.“On the liquidity side there are challenges for the NBFCs. Banks will benefit because of that, especially those from the private sector,” he added. | bank index gained almost 6%, or 1,600 points, during last week. the gauge posted its sharpest weekly advance in the past couple of years. most analysts recommend buying corporate banks such as Axis Bank and ICICI Bank. the ratio of Bank Nifty to Nifty is also at its all-time high of 2.57. the bank index futures have seen an addition of 123 per cent in open interest since the beginning of the series. | Positive |
http://www.financialexpress.com/india-news/how-arun-jaitley-defended-state-of-economy-in-parliament/1002173/ | In a strong defence of the government’s handling of the economy, finance minister Arun Jaitley on Thursday said the NDA regime brought India back to health from the status of one of the five fragile nations even in trying conditions, when the country faced two successive years of drought. It cut fiscal and current account deficits drastically, undertook structural reforms like GST and took Aadhaar and direct subsidy transfer to their logical end. After hitting a three-year low of 5.7% in Q1FY18, the GDP growth recovered to 6.3% in Q2. To restore the health of the bad loans-encumbered public-sector banks and enable them to support growth through higher lending, the government has announced a massive `2.11 lakh crore recapitalisation package for them, Jaitley told Parliament. “Today, there are only some references about a possible minor fiscal slippage. During the UPA regime, there was a massive fiscal slippage of close to 6% (in FY12); current account defict (CAD) was as high as 4.8% (in FY13).
In the past three years, we have reduced the fiscal deficit consistently through a glide path (it was 3.5% in FY17 and the target for FY18 is 3.2%) and CAD is brought down (to 0.7% in FY17).” “We have shown fiscal discipline and the markets have awarded us as well,” he said. For the first time in around 14 years, Moody’s raised its sovereign rating for India by a notch in November last year. “In two of the last three years, the country witnessed drought. The global growth was going down before recovering only this year,” Jaitley said, stressing some of the challenges the economy faced in the past three-and-a-half years.
The fiscal discipline is on track despite hardening of crude oil prices and higher wage awards following the 7th Pay Commission recommendations, he added. Strutural changes like the GST may have some short-term costs but in the medium and long terms, they would benefit the economy. Jaitley said the Congress had been asking for the GST rates to be lowered and now that many rates have been reasonably trimmed, the main opposition party is cribbing about a drop in the government’s indirect tax collections. “Isn’t it (the drop) natural?” he asked. The direct benefit transfers have helped target the beneficaries better and Aadhaar has been a potent instrument in this effort, he said. | finance minister says the government has restored the country's health. he says the country has shown fiscal discipline and the markets have awarded us. the government has announced a massive 2.11 lakh crore recapitalisation package for public-sector banks. the government has cut fiscal deficits drastically and undertook structural reforms like GST. the government has also taken aadhaar and direct subsidy transfer to their logical end. | Positive |
https://economictimes.indiatimes.com/markets/stocks/recos/buy-cadila-healthcare-target-price-rs-311-nirmal-bang/articleshow/74885263.cms | Normal Bang has given a buy rating to Cadila Healthcare with a target price of Rs 311, an upside of 21.1 per cent on a CMP of Rs 257. According to the brokerage, Cadila Healthcare’s performance in the fourth quarter of FY20 should be aided by a growth in domestic business and a seasonally stronger wellness business.The share price of the company moved up by 0.16 per cent from its previous close of Rs 252.70. The last traded price is Rs 253.10. Incorporated in 1995, Cadila Healthcare has a market cap of Rs 25880.21 crore.The wellness business growth may be lower than normal due to demand disruption led by Covid-19 lockdown. In the US - their key products Lialda and Levorphanol witnessed the impact of additional competition which should be offset by volumes in Tamiflu suspension and appreciation in US dollar. The brokerage maintains its FY21 and FY22 estimates. It has rolled over to FY22 EPS and arrived at a target price of Rs 311 based on a target PE multiple of 20 times. Nirmal Bang expects the fourth quarter FY20 earnings to be monotonous for most pharma companies. It does not see a meaningful adverse impact of Covid-19 lockdown on earnings. With China resuming supplies of raw materials, potential disruption in manufacturing is now no longer a concern.The India pharma market is expected to show high single digit growth. In the US, marginal benefit could come from dollar appreciation and potential increase in stocking at the wholesaler level which should be offset by currency depreciation in emerging markets due to declining crude prices.For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 3534.50 crore, up 8.95 per cent from last quarter sales of Rs 3244.20 crore and up 0.52 per cent from last year's same quarter sales of Rs 3516.10 crore. The company reported net profit after tax of Rs 364.40 crore in the latest quarter. | normal Bang has given a buy rating to Cadila Healthcare with a target price of Rs 311, an upside of 21.1 per cent on a CMP of Rs 257. the company's performance in the fourth quarter of FY20 should be aided by a growth in domestic business and a seasonally stronger wellness business. the brokerage maintains its FY21 and FY22 estimates. | Positive |
https://www.livemint.com/Money/VTqx0DxvLTpJwved5z4uNN/Reliance-Securities-top-stock-picks-for-2019.html | Mumbai: Indian stock markets are likely be volatile in the first half of 2019 with a host of domestic and international factors, including 2019 general elections , concerns of global economic slowdown and uncertainty in US-China trade relations. The volatility in the first few months of the year will give a chance to build the portfolio over the next two quarters to generate higher double digit returns over the next few years, said Vikas Jain, senior research analyst, Reliance Securities Ltd. In 2018, the NSE Nifty gained 3.13%, while the Sensex rose nearly 6% to post their fourth yearly gain in five.
“We believe as the macro concerns have eased with lower crude oil prices, inflation particularly CPI at multi month lows and stable rupee with softer bond yields, it warrants for an interest rate reversal in CY19 from current levels," said Jain. He noted manufacturing sectors like capital goods, auto and metals are very positive from current levels.
Volatility has increased a lot over the past few weeks on back of global volatility and it would start inching upwards from the middle of the February with respect to the interim budget and during the time of general elections in the first half, he added.
Read: Motilal Oswal’s 10 stock picks for 2019
In pharma sector, Sun Pharma, Cadila Healthcare and Natco Pharma are among Reliance Securities top picks for 2019. In banking and financial sector, Reliance Securities likes HDFC, ICICI Pru Life, Aditya Birla Capital, Kotak Bank and IDFC Bank.
Jain has recommended a portfolio that is expected to give a return of 15% to 25% in the next one year till December 31, 2019.
AUTO
Tata Motors 5.00%
Bajaj-Auto 5.00%
Motherson Sumi 5.00%
PHARMA
Sun Pharma 5.00%
Cadila Healthcare 5.00%
Natco Pharma 5.00%
BFSI
HDFC Ltd 7.50%
ICICI Pru Life 7.50%
Aditya Birla Capital 5.00%
Kotak Bank 5.00%
IDFC Bank 5.00%
METALS
Vedanta 7.50%
National Aluminium 7.50%
CAPITAL GOODS/POWER
Cummins 5.00%
Bharat Electronics 5.00%
Power Grid 5.00%
CASH 10%
Total 100%
Disclaimer: Livemint.com advises readers to check with experts before taking any investment decisions.
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Topics | in 2018, the NSE Nifty gained 3.13%, while the Sensex rose nearly 6% to post their fourth yearly gain in five. manufacturing sectors like capital goods, auto and metals are very positive from current levels. pharma sector, Sun Pharma, Cadila Healthcare and Natco Pharma are among Reliance Securities top picks for 2019. a portfolio that is expected to give a return of 15% to 25% in the next one year till December 31, 2019. | Positive |
https://www.moneycontrol.com/news/business/companies/facebook-jio-deal-heres-what-mark-zuckerberg-has-to-say-5174881.html | Facebook has bought a 9.9% stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), the telecom unit of Reliance Industries Ltd (RIL) in a multibillion-dollar deal that gives the social media giant a firm foothold in a fast-growing massive market and helps the Indian oil-to-telecom conglomerate to significantly cut debt.
The deal values Jio at $65.95 billion.
Jio said, "The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value."
Facebook said, "This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country. In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio."
ALSO READ: Reliance Jio-Facebook deal: Here are all the companies Jio has invested in so far
Mark Zuckerberg, in a statement, said:
There's a lot going on in the world right now, but I wanted to share an update on our work in India. Facebook is teaming up with Jio Platforms -- we're making a financial investment, and more than that, we're committing to work together on some major projects that will open up commerce opportunities for people across India.
India is home to the largest communities on Facebook and WhatsApp, and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.
ALSO READ: Here's why Facebook bought stake in Reliance Jio for Rs 43,574 crore
This is especially important right now, because small businesses are the core of every economy and they need our support. India has more than 60 million small businesses and millions of people rely on them for jobs. With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses. This is something we can help with -- and that's why we're partnering with Jio to help people and businesses in India create new opportunities.
I want to thank Mukesh Ambani and the entire Jio team for their partnership. We're looking forward to getting started.
Catch our entire coverage on the Facebook-Jio Deal here.
Disclaimer: Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. | facebook buys 9.9% stake in reliance Jio for $5.7 billion (Rs 43,574 crore) deal gives social media giant a firm foothold in a fast-growing massive market. it helps the oil-to-telecom conglomerate to significantly cut debt. the deal values Jio at $65.95 billion. in less than four years, Jio has brought more than 388 million people online. | Positive |
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Next year, our bigger focus will be on acute business and diabetes drugs,, MD,, tells ET Now Edited excerpts:Pharma industry by and large has faced some headwinds in the past because of competition in the generic space in the US. In India, it was affected over the last two years because of demonetisation and GST transition that the country went through. I see that having gone through this phase over the last few years, next year overall, the pharma industry will be in a slightly better position compared to what it went through over the last few years. It looks positive and it looks like that it could be more positive and have a better recovery next year.Broadly what has happened in the US is that to some extent, the nature of the industry has got changed and from a competitiveness point of view, generic players are facing increased competition in the US. On the customer side, there is further consolidation taking place.Both these factors put together have increased the pricing pressure on the generic industry in the US and by and large, that will remain. The pricing pressure is a function of that and there could be times when it is more in certain products and less in certain products but as an overall industry dynamic, the nature and structure of the industry will remain same.Traditionally, our India business has been on a very positive and healthy track and that is expected to continue. The Indian industry has not shown the double digit growth it had experienced earlier. But in the coming year, our basic focus is on big brands that we have developed in the acute business, like cough and analgesia.Also, there will be a big focus on diabetes where we have insulin and insulin analogs like glargine and an entire portfolio of products from vials to cartridges to pens. Diabetes is another major growth driver and we will also be launching our first new chemical entity drug discovery product in India in the coming year.We are very positive about the India business and we expect a good double digit growth. And the positive momentum will continue in 2019 also.As an organisation, we have done a lot in terms of the kind of efforts in remediating and addressing the observations of FDA in our facilities. Over the last many years, we have fundamentally changed our quality management systems, the structure, the leadership and the people, technology and addressed a lot of the concerns.We also are in a position now where we believe we are offering one site in India for FDA to come and visit us. We do hope that with the progress that we have made in the site, US FDA would look forward to visiting us soon and we can expect some good news this year.We have a very strong portfolio of new chemical entity. Antibiotic products which are result of Wockhardt R&D over the last 20-25 years and we have done clinical development. We have five products in our portfolio. One of these products we are going to file with DCGI in the coming month and we hope to have an approval of this product in India in 2019.Simultaneously, we will also be looking at taking this product to other markets outside India to the other emerging markets. This is a gram positive multispectrum novel antibiotic and works against resistant organisms.In case of the second product, we are looking at continuing our global clinical development outside India for the global market in the US and Europe. It is a life-saving gram negative hospital use injectable antibiotic. It is effective against resistant organisms like acinetobacter and klebsiella. It is actually used as a destination therapy when all other antibiotics fail.We are looking at transferring some of the products that were impacted by the FDA regulatory issues outside our facilities into third party facilities and that project is going on quite well. Four-five products have already been launched and another four-five products would be launched next year. Some of the business improvement and growth in the US business will come from these third party launched partners that we have for the US market.Currently, because of various issues in terms of the US operation going down over the last three-four years, we are at a slight financial difficulty but I feel that our multi-pronged approach will address this issue. We are looking at growing our existing business and improving our fundamental profitability next year. Broadly, that will be the major approach that we will have is of financially getting into a more profitable mode both by growing the business as well as by looking at some of the costs associated with our business.In addition, various financing measures also are being looked at simultaneously to address this issue.There are various plans that we are currently engaged in to address this issue a a little bit more in detail and it will be premature to talk about it right now. But we are very much aware of it and as management we are looking at that and seeing what is the best possible options that are available and workable at a given point of time. | India business has been on a very positive and healthy track, says dr. sagar. diabetes is another major growth driver and we will launch our first new drug discovery product in the coming year. sagar: "we are very positive about the India business and we expect a good double digit growth" he says he is optimistic about the future of the pharma industry in india. | Positive |
https://www.moneycontrol.com/news/business/traders-carnival-2020-to-be-held-in-jaipur-heres-how-you-can-register-4956601.html | Traders Carnival, the annual event that serves as a melting pot for all types of ideas and strategies on trading, is coming to Jaipur this year.
To be held between March 5 and March 7, the event will line up all renowned traders of all styles -- from intra-day and swing to directional and options.
This year's Traders Carnival will also focus on the hottest trend in trading: algo trading.
The Carnival will showcase live trading with both man and machine in action on expiry day (March 5), when algo traders will go toe-to-toe with popular expiry day traders such as Vishvesh Chauhan and Siva. While Siva is a scalper trading in and out within minutes, Vishvesh trades with a slightly higher time horizon that may extend from hours to days.
Apart from live trading, participants will get to interact with some of the best names in the industry like Gaurav Bissa, one of India's finest technical analysts. A trend follower and a reversal analyst, Gaurav will talk on strategies using Harmonics and Ichimoku.
This year's Traders Carnival will also feature local talent: Kusal Kansara and Rishikesh. Though based out of Mumbai, Jaipur is a second home for Kusal. An algo trader, he has built trading infrastructure for algorithmic trading systems and execution strategies. He has created various proprietary indicators and statistical models to generate alphas and beat the market volatility. Managing a large proprietary portfolio, Kusal has an enviable track record, often making monthly returns which some funds fail to achieve even in a year.
Rishikesh, a 30-year-old whizkid from Jaipur underwent losses for 6 straight years from 2009 to 2015. Then, he turned things around dramatically by following principles of position sizing and risk management. Besides talking on these two topics, traders can learn Rishi's experiences and lessons from his failed attempts.
Speaking for the first time at the Carnival will be Rishikesh Singh, a popular trader from Jaipur, who tweets using the handle @Rishikesh_ADX.
Since the event is spread out over three days, it offers an opportunity for participants to interact, learn and get their doubts cleared by experts like Ashish Patel. Ashish manages his positions in the markets using the Elliot Wave as his primary tool. He combines other common technical patterns and momentum indicators along with Elliot Wave to fine-tune his strategy.
Attendees can also interact with Deepak Thakran, who operates the popular Twitter handle @indian_stockss. Among the small breed of traders who trade for a living, Deepak is a price action trader who uses only price behaviour as his guide. An intra-day trader, he is the shadow lurking in the dark to pounce on a stock when it is at its most vulnerable point.
A name synonymous with Nifty levels, Kapil Tandon, an ace trader will be talking about the mechanics of the support and resistance. Kapil’s previous talks at Delhi and Goa are still talked about for the sheer brilliance of his views on almost all asset classes.
Other notable mentions presenting their respective curated strategies are Sandeep Jain from Jaipur, Govind Jhawar from Surat, and one of the foremost experts on options buying, Asit Baran Pati from Delhi.
The Jaipur Traders Carnival is a buffet of trading ideas and strategies. There is something for everyone's taste. Like all carnivals, the biggest advantage is to network and rub shoulders with other traders and the opportunity to get the secret sauce that can change your life.
Traders Carnival has always been a residential conference since inception in 2012. The reason is not difficult to understand. Traders need time to brainstorm, discuss ideas, strategise and more. The Carnival nights go on well beyond midnight.
Those interested in participating may register at traderscarnival.com
(Traders Carnival events are brought to you by Rekha and Dharmaraj Janakiram - usually called DJ - with passion, diligence and a lot of love. DJ says he has received a lot of help from some great friends made over the years at the Carnival.) | Traders Carnival is an annual event that serves as a melting pot for all types of ideas and strategies on trading. the event will feature all renowned traders of all styles -- from intra-day and swing to directional and options. this year's Traders Carnival will also focus on the hottest trend in trading: algo trading. participants will get to interact with some of the best names in the industry like Gaurav Bissa. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/dow-jones-rallies-500-pts-as-as-banks-jj-kick-off-earnings/articleshow/75143714.cms | The festive month of Diwali brought a much-needed boost in online shopping after a muted start to the year in the first half. Ecommerce platforms, retailers and online sellers reported a steady uptick in sales with categories like electronics, food and grocery, and jewellery reporting double digit growth over last year.
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.
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.
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Top Trending Stocks: Sensex Today Live | ecommerce platforms, retailers and online sellers reported a steady uptick in sales. categories like electronics, food and grocery, and jewellery reported double digit growth over last year. Sensex and nifty gained over half a per cent in the special 60-minute muhurat trading session on Sunday evening. Sensex and nifty are the most traded stocks in the world. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/norwegian-pm-inaugurates-unique-green-embassy-building-in-delhi/articleshow/67424049.cms | NEW DELHI: In a unique move a new green compound at the Royal Norwegian Embassy here was inaugurated by the Prime Minister of Norway, Erna Solberg . She is in the capital for a 2- day official visit.The embassy has obtained a Green Rating for Integrated Habitat by the Government of India. High sustainability and environmental ambitions were key goals for the architect. The building is adapted to the local climate and take into consideration Indian environmental concerns . Locally available building materials were used in the construction process. 95% came from local markets in New Delhi.“It has been an exciting challenge, not just the architectural design, but the whole construction process” says the architect, Terje Grønmo from Terje Grønmo Arkitekter AS.Ensuring sustainable water management and energy efficiency have been a major concern. The new compound is constructed with wells for rainwater harvesting. Geothermal wells are used for cooling by circulating water in 30 wells sunk 100 meters into the earth. Water is heated using solar panels, which produce 200kWh energy per day. This is equivalent to powering a 40w bulb for almost 7 months or a 3W LED for around 7, 5 years.The handling of materials and preservation of green areas have also been important, including the environmental concerns for the trees. Trees, probably more than 60 years old, have been shifted, allowing for conservation of as much of the green space as possible.“The inauguration today marks the beginning of a new era of cooperation between our two countries. As a green embassy, I hope it can serve as an inspiration for our shared efforts to achieve the green transition and the Sustainable Development Goals. I look forward to seeing our partnership bear more fruits, in business, politics and development”, said Prime Minister Solberg. | the embassy has obtained a Green Rating for Integrated Habitat by the Government of India. 95% of the building materials came from local markets in new Delhi. the building is constructed with wells for rainwater harvesting. geothermal wells are used for cooling by circulating water in 30 wells sunk 100 meters into the earth. water is heated using solar panels, which produce 200kWh energy per day. | Positive |
https://www.moneycontrol.com/news/india/coronavirus-pandemic-pm-for-new-structural-reforms-to-revive-economy-5215751.html | Prime Minister Narendra Modi on Saturday underlined the need for new structural reforms and expedite work on infrastructure projects to revive the economy reeling under the impact of coronavirus-induced lockdown.
He made these observations during a series of meetings held on Saturday to discuss strategies and interventions in the financial sector as well as structural reforms to spur growth and welfare in the current context.
The series of meetings with key Cabinet ministers, officials of economic ministries is likely to culminate into a second stimulus package for sectors, including MSME and the farm sector, hit hard by the outbreak of COVID-19 pandemic.
Dwelling on the issue of welfare of workers and the common man, the Prime Minister pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties due to disruptions caused by COVID-19, an official statement said.
The Prime Minister also stressed on the need to strengthen major structural reforms undertaken in the past and new structural reforms in the areas of corporate governance, credit markets and infrastructure sectors were also discussed, it said.
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He also stressed the need to take speedy measures to commence work on new infrastructure projects and speed up works in the infrastructure sector so as to make up for the time lost in COVID-19.
He wanted the projects taken up under the National Infrastructure Pipeline (NIP) be reviewed at the highest level frequently to avoid time delays and enable the creation of jobs.
The task force on NIP has recently submitted a report which projected a staggering Rs 111 lakh crore investment in the infrastructure sector by 2024-25.
The statement further said that it was also discussed that the reform initiatives undertaken by the various Ministries should continue unabated and the action should be taken in a time-bound manner to remove any obstacles to investment flows and capital formation.
The meeting was attended by the Home Minister, the Finance Minister, Secretaries of the Ministry of Finance along with senior officials of the Government of India.
At a meeting with the finance minister and officials, the prime minister discussed strategies and interventions to support MSMEs and farmers, enhance liquidity and strengthen credit flows. He also discussed ways and means to ensure financial stability in the wake of COVID-19 and measures taken to enable businesses to recover quickly from the impacts.
Earlier in the day, MSME Minister Nitin Gadkari said that his ministry has suggested a relief package to the prime minister and the finance minister for the medium, small and micro sector and exuded confidence that an announcement would be made soon.
"Chaired a meeting on strengthening our MSME sector, which plays a pivotal role in economic development. There were extensive discussions on ways to make this sector more vibrant, attractive and ready to embrace new opportunities," the prime minister said in a tweet after the meeting.
The Prime Minister in another tweet said, "Held a meeting to discuss subjects related to the financial world, including structural reforms that will give a boost to growth and public welfare. We reviewed strategies to support the MSME sector and ensure liquidity & credit supply."
The central government is focused on ensuring welfare of workers, helping businesses overcome the difficulties arising in the wake of COVID-19, reforms in corporate governance, credit markets and the infra sector, he said.
During another meeting concerning the farm sector, various reforms in agriculture marketing, management of marketable surplus, access of farmers to institutional credit and freeing the agriculture sector of various restrictions with appropriate backing of the statute were discussed.
The focus was on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development, an official statement said.
"Concessional credit flow to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produce to ensure the fairest return to farmer were some of the important areas covered. Developing e-NAM into a platform of platforms to enable e-commerce was one of the important topics of discussion," it said.
A discussion also emanated on the possibilities of the uniform statutory framework in the country to facilitate new ways for farming which will infuse capital and technology in agrarian economy, it said, adding, the pros and cons of bio-technological developments in crops or enhancement of productivity and reduction in input costs were also deliberated.
During the deliberations, each ministry made recommendations and possible steps to be taken in the short run to prop up the sector administered by them.
After a detailed review of every sector, a relief and stimulus package will be worked out, sources said.
The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and industry ministry among others on Thursday.
To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. | prime minister Narendra Modi meets with key cabinet ministers to discuss economic reforms. he also urges businesses to overcome disruptions caused by COVID-19. a vaccine works by mimicking a natural infection. a vaccine also helps quickly build herd immunity to put an end to the pandemic. a chinese government has urged the government to take steps to combat the virus. | Positive |
https://www.financialexpress.com/money/mutual-funds/childrens-mutual-funds-a-gift-that-grows-with-your-child/2003876/ | It is not uncommon for grandparents to shower gifts on their grandchildren from time to time, be it on special occasions or just to express love towards them without any occasion. Often, the gift is a material one, an expensive toy or clothes or an electronic gadget.
While these gifts are great for providing instant happiness to your grandchild, a better form of gift that could potentially secure the future of the child is to gift an investment meant to provide for the his / her higher education.
Why build a corpus dedicated for your grandchildren’s education?
As the world becomes more competitive each passing day, the need for, not just education, but quality education is on the rise. In order to face the ever growing challenges posed by job environment, people are increasingly pursuing professional courses from premium institutes. Moreover, in today’s context, the cost of child care, especially the cost of education, is on the rise at a faster rate than the average level of inflation. Premium institutes have the pricing power and inflation will take these numbers higher year after year. One needs to be aware of the same and the cost of education should not come as a surprise. Nobody would want finances to get in the way of their child’s dreams and it calls for better preparedness through regular savings with a goal in mind.
Investing towards your grandchildren’s future also helps you manage your estate more efficiently. As you near your sunset years, a reduced, but sufficient enough estate, would be ideal as you prepare pass on your wealth to the next generation.
Children’s Funds – A Gift that Grows Along with the Child
Children’s Mutual Funds is a category of mutual fund schemes designed to build a corpus of a children’s future needs like education, marriage, general welfare, etc. It’s a unique offering in this category of mutual funds, allows a grandparent or any other person to gift units of the fund to a child under 18 years of age. While investing in the fund, you as grandparent can be the donor, the parent is the stated guardian and the units are held in the name of the child.
While you can make a one-time gift of investing in the fund, a better and a sustainable way to build a sizeable corpus for your grandchildren’s future would be to opt for an SIP or a Systematic Investment Plan. Using SIP, you can gift your grandchildren units of the fund on a periodic basis, say monthly. A SIP is a more disciplined way of investing allowing you to navigate the ups and downs of markets over a medium to long term period.
Especially in goal-based investing, there is an element of mental accounting wherein the investment is earmarked for a specific purpose, children’s education in this case. Since the investment is tied to this goal, the investor is automatically disciplined to use these funds only for the predefined purpose and not for any other financial requirements. A parallel can be drawn here to the money invested in a Provident Fund. Money invested in Provident Funds are meant for retirement – investors therefore are reluctant to utilize that money for other purposes, like buying a car or going for a foreign vacation, for instance. Investors hold on to such investments with discipline till they actually retire. Therefore, goal-based investing helps investors in preventing overspending on less important requirements. As a result, a sizeable corpus can be built over a period of time.
(By Shyamali Basu, Senior Vice President & Head – Products & Marketing, HDFC Asset Management Co Ltd)
Disclaimer: Mutual fund investments are subject to market risks. Also, this is the personal view of the author. Readers are advised to consult their financial advisor before making any investment | children's mutual funds are a category of mutual fund schemes designed to build a corpus of a children's future needs. the fund allows a grandparent or any other person to gift units of the fund to a child under 18 years of age. a better and a sustainable way to build a sizeable corpus for your grandchildren’s future would be to opt for an SIP or a Systematic Investment Plan. | Positive |
https://economictimes.indiatimes.com/news/economy/finance/uae-can-play-vital-role-in-narendra-modis-vision-of-usd-5-trillion-economy-says-official/articleshow/71954828.cms | DHARAMSHALA: 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 can play a vital role in achieving Prime Minister Narendra Modi's vision of making India a USD 5 trillion economy by 2025, he said. bilateral relations between india and the UAE have strengthened after the first visit of Modi to the UAE in august 2015. trade between the two countries has reached to 60 billion dollars in 2018-19 from a mere 185 million dollars in 1980. | Positive |
https://www.financialexpress.com/industry/sme/defence-start-up-big-bang-boom-solutions-raises-rs-11-crore/2015237/ | Chennai-based defence start-up Big Bang Boom Solutions has raised Rs 11 crore, led by Mumbai Angels, and angel networks including Keiretsu Forum, Udtara Ventures, Pitchright Ventures and HNIs. This comes on the back of a `5-crore recent fund raise which has put the company on a highly accelerated growth trajectory.
Praveen Dwarakanath, CEO, said: “We took inspiration from the battle at Rezang La in 1962. If the Indian soldiers could hold the enemy back under those impossible odds, surely we can do what is needed to back our force. We did not let the lockdown slow us down and did what was required to ensure that everything is on track.”
The founders of the start-up clarified that the fundraise was not just the cash addition to its balance sheet. “The addition of over 70 private investors means that the start-up now has a set of highly intellectual, and well-placed individuals whose combined contribution to the journey in kind, far outweighs the cash raised,” they said.
The company decided to turn towards angel networks as opposed to the classic VC route for their fundraise as a strategic call to bring in these allied benefits. Shivaraman Ramaswamy, chief technology officer, said :“This is an extremely exciting phase of our journey towards becoming India’s first defence unicorn. With support from iDEX and the confidence of our investors, we are sure we will be able to continue our groundbreaking R&D in defence technologies.”
Defence technologies that are developed within the geographical boundaries of the nation bring a great deal of security to the country, especially given the situation at the border, he added.
Nandini Mansinghka, co-promoter and CEO, Mumbai Angels Network, said: “We are seeing a dynamic shift in how the government is looking defence as a sector for start-ups to innovate, research and built technologies from ground-up and put India on the global footprint as a defence exporter instead of a defence importer. We are extremely bullish about participating in this industry-defining the near future and is the backbone of our economy.”
Big Bang Boom Solutions was started in 2018 by Shivaraman Ramaswamy and Praveen Dwarakanath, who are both serial entrepreneurs. The company managed to win two prestigious iDEX grants from the Defence Innovation Organization, Department of Defence Production and is on track to deliver cutting-edge technology systems to the Indian armed forces. They have been granted incubation facilities with T-Hub in Hyderabad and Forge in Coimbatore. | defence start-up has raised Rs 11 crore, led by Mumbai Angels and angel networks. comes on the back of a recent 5-crore fund raise which has put the company on a highly accelerated growth trajectory. the company decided to turn towards angel networks as opposed to the classic VC route for their fundraise. the company is a 'disruptive' start-up with a history of soaring debt. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/electronics/dishwashers-refrigerators-trimmers-large-screen-tvs-becoming-preferred-appliances/articleshow/75659562.cms | Big screen TV sets, large volume refrigerators, home theatres and dishwashers are now gaining traction, thanks to COVID-19 induced lockdown, according to home appliances and consumer electronics manufacturers.Many companies, including Samsung, Panasonic, Sony, Whirlpool of India and BSH Home appliances, in the country are getting enquiries from people confined in their homes about such products.The manufacturers also expect increase in sales of vacuum cleaners and grooming products like electric shavers and trimmers as salons are closed and people may tend to avoid such places even post lockdown."Indians are gradually adapting to the new lifestyle. Restricted within the confines of their homes, people are making the best use of their electronic companions (appliances) to support themselves in their daily chores. Therefore, appliances catering to cooking, self-grooming and cleaning will be in huge demand," Panasonic India & South Asia President & CEO Manish Sharma told .According to Sony India Managing Director Sunil Nayyar, during the Lockdown, TV viewing has almost doubled and suddenly people are realising to upgrade their TV viewing experience along with a better sound system.Also as movie halls would be closed for another six to eight months, consumption of OTT contents is expected to rise on large screen TV sets along with home-theatre systems and people would certainly need good equipment."Urge to upgrade has been considerably strengthened in the last 46 days (Lockdown). This is the time for realisation, when you need better visual experience through TV both in terms of picture and sound. Sales of Home theater would also increase," Nayyar said.Products such as dishwashers, limited only to key metro markets, is one of the most enquired categories, as people have realised its importance in the absence of their household help under the lockdown."We expect to see a surge in demand for dishwashers among consumers once the lockdown is lifted. We have already started receiving a lot of enquiries and booking for dishwashers. These orders will be fulfilled as and when the lockdown is lifted in respective regions," said BSH Home appliances MD & CEO Neeraj Bahl.Consumer electronic maker Samsung, which has already started pre-booking of its products, has received queries from consumers across the country for upgradation of TV and digital appliances."Many, including those in tier-II and tier-III cities as well as rural areas are wanting to buy bigger Smart TVs, 5in1 Smart Convertible Refrigerators and Hygiene Steam washing machines, as their needs are changing. These consumers want to upsize once the lockdown restrictions are relaxed," Samsung India Senior Vice President, Consumer Electronics Business, Raju Pullan said.Moreover, 300-litre and above refrigerators are also in demand as people are preferring to store foods in large quantities in the eventualities of any such future lockdown kind of situation."The ongoing pandemic has also changed the way we store essentials/ food items for long-term usage. Stocking up on essentials, frozen and ready-to-eat food items in large quantities has been the new norm amongst Indian households. Owing to this, we expect the demand for refrigerators to rise across India with frost free/ multi-door or, high capacity refrigerator range driving sales in the metros/ tier 1 cities and single-door range gaining traction in the tier II & III regions," said Sharma.In addition, the appliances companies have also witnessed queries regarding several kitchen appliances and food processors as restaurants are closed and people would continue to avoid them for initial months after lockdown is lifted."Absolutely, we already see lot of request for kitchen appliances like mixer grinder, cold press juicer, food processor and hand blenders," said Bahl."We have seen a big rise in searches for home made recipes, healthy grilling recipes, indulgence recipes, easy cook recipes and of course small domestic appliances that can help make it all. Combined with this are larger perception shifts that the lockdown has bought amongst all of us as we all have started valuing these appliances way more now. Therefore, we believe there will be a step change in penetration for these categories," Whirlpool of India Vice President Marketing KG Singh said.Consumers will also be mindful of managing households in preparation of future lockdowns and building self sufficiency. This is going to lead to higher penetration of consumer durables categories, he added.Nayyar said that work-from-home is now a new culture and everybody needs a good headphone, so that they could have a seamless communication, hence this segment is also expected to rise.According to a joint report by CEAMA and Frost & Sullivan, the industry had a total market size of Rs 76,400 crore in 2018-19, in which Rs 32,200 crore was contributed from domestic manufacturing.India is presently going through an unprecedented complete lockdown from March 25, to prevent the spread of the virus. The government had extended it for two weeks from May 4 with certain relaxation. | big screen TV sets, large volume refrigerators, home theatres and dishwashers are now gaining traction, thanks to COVID-19. many companies, including Samsung, Panasonic, Sony, Whirlpool of India and BSH Home appliances, are getting enquiries from people confined in their homes. the manufacturers also expect increase in sales of vacuum cleaners and grooming products like electric shavers and trimmers. | Positive |
https://www.moneycontrol.com/news/india/in-depth-with-practical-ethical-conundrums-could-immunity-certificate-help-india-ease-the-coronavirus-lockdown-5158871.html | Representative image
Over 2 million cases of coronavirus have been registered in 185 countries and territories since the epidemic first emerged in China in December 2019. The worldwide death toll from COVID-19 has risen to over 1,46,500 on April 17, according to Johns Hopkins Coronavirus Resource Centre.
The coronavirus pandemic has pushed the world into lockdowns, social distancing, or some or the other form of restrictions to help curb the spread of COVID-19.
As the lockdown continues to inconvenience people and cripple economies of several countries, experts are thinking about strategies to end the limitations on everyday activities and help normalcy spring back.
Amid the pall of gloom, a silver lining is that around 550,000 have recovered from the infection.
Some experts see this figure as a resource for restarting the economy. Policymakers of countries like Germany, Italy, and the UK, as well as some US health experts have reportedly started considering issuing 'immunity certificates', which will indicate that a person has immunity to COVID-19. This means, this person is no longer infectious or vulnerable to the disease and thus, can return to normal life.
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
What is an immunity certificate?
If a person can contract COVID-19 and survive it, he or she might be entitled to what is referred to as an immunity certificate, also known as the 'immunity passport'. It is a certificate that proves the person is at less risk of contracting COVID-19 as they have immunity that will protect them from getting the infection again for some time.
The certificate will most likely exempt the person from the restrictions put in place to curb the spread of the virus. This means the person will be able to leave isolation and move outside freely.
How to get an immunity certificate issued?
The certificate of immunity can be given on the basis of the antibody test, which detects signs of an immune response, Dr Ashok Mahashur, consultant chest physician at PD Hinduja hospital, Mumbai told Moneycontrol.
When the body of a person encounters a virus, it takes some time for it to recognise the invader and begin to scale up an immune response. Immune molecules, called antibodies, are a crucial part of this response.
The first type of antibody to appear is called immunoglobulin M, or IgM, and its levels increase within a few days of the person getting infected. But, IgM is a generic fighter.
To target and destroy a specific virus, the body refines it into a second type of antibody, called immunoglobulin G, or IgG, that can recognise that virus.
There is a third type of antibody, called IgA, which is present in mucosal tissues — like the inner lining of the lungs, a report in The New York Times pointed out. IgA is known to be important for fighting respiratory infections, such as influenza, and is likely to be central in coronavirus infections too.
Many of the tests look for levels of all three antibodies; whereas some look for just IgM and IgG, and still others test for only one type.
Also read | WHO recommends limiting access to alcohol, dispels rumours that it protects people from COVID-19
Which countries are planning to detect immunity and issue certificates?
In the UK, Health Secretary Matt Hancock, who has himself just emerged from self-isolation after testing positive for COVID-19, suggested that Britons who've had the virus might be issued with a certificate, which has already been dubbed as an 'immunity certificate'.
“It (an immunity certificate) is an important thing that we will be doing and are looking at but, it’s too early in the science of the immunity that comes from having had the disease,” Hancock said at a press conference earlier in April.
German researchers have proposed testing 100,000 people for antibodies to SARS-CoV-2, the virus that causes COVID-19, and giving 'immunity certificates' to those who have these antibodies, which presumably make them resistant to re-infection, according to a report in Business Insider. They can be even allowed to leave the country's coronavirus lockdown earlier than the rest of the population, the report added.
A US-based medical devices and health care company, Abbott Laboratories, has announced that it has developed an antibody test that will determine if someone has been previously infected with the coronavirus and has potentially developed immunity.
"It is a great test. The company says these tests could be available to screen up to 20 million people in a matter of weeks," US President Donald Trump had said.
Also read | Are Lockdown Bonds a balm for the virus-hit businesses?
Theoretically, the antibody test-based certificate is a strategy that could work to identify people who have immunity against the disease, but it still relies on several factors to work properly and safely.
Potential benefits of immunity certificates
The certificate of immunity is a proposal with an obvious appeal to move the life of the people as well as economy back toward normalcy. Giving immunity certificates to COVID-19 survivors would purportedly:
# Help ease the lockdown as people with ‘immunity’ can move freely;
# Get the economy rolling, as persons having the immunity status could safely return to work considering they would not get sick again and start passing the virus around; and
# Bring doctors and other healthcare workers as well as security personnel back to their jobs after isolation, so that they can restart working to cure infected persons and prevent the spread of COVID-19, respectively.
Challenges that come with issuing immunity certificates
Issuing of immunity certificates includes many risks like inaccurate testing, forging or buying black market forgeries of the certificates, deliberate contracting the COVID-19 infection with perhaps a misplaced confidence that one would quickly recover and be duly certified to go back to work, social divide, among others.
Let’s understand these possible scenarios thoroughly:
# Test accuracy: Potential challenges include finding a reliable test to determine whether a recovered COVID-19 patient is actually immune to a new infection or a relapse; or if they are immune, how strong is that immunity and for how long will it last. Although some labs are claiming to have COVID-19 antibody test, like Abbott labs, no test is said to be perfect.
Furthermore, scientists are not yet sure whether some recovered individuals have a high enough level of antibodies to fight this coronavirus a second time, making antibody tests and immunity certificates implausible as exit strategies, according to a European journal DW. For instance, there are reports of people being infected twice in China. Also, in South Korea, a small, but growing number, of recovered coronavirus patients are relapsing, testing positive for the virus again.
# Discrimination in society
It isn’t just the science that makes immunity certificates problematic, difficult social questions could also be thrown up. These certificates might create a kind of two-tier society, where those who have them can return to normalcy while others are compelled to follow the restrictions.
The tagging of immunity status is even more problematic in smaller towns, where residents know each other. The risk of creating resentment by dividing the society into two groups, where one is allowed to break free of the lockdowns and the other is not, would be extremely "detrimental to the community solidarity," that is holding society together at the moment, a DW report said, quoting Dr Martin Schnell, a professor of social philosophy and ethics in healthcare at Germany's University of Witten/Herdecke.
# Possibility of deliberate exposure to COVID-19
The idea to issue the certificate of immunity brings the possibility for people, especially millennials (who might feel their chances of surviving the disease are high), deliberately trying to contract the virus.
The economic value of an immunity certificate would be enormous, and plenty of people would be desperate enough to lie or pay to get one. That sounds crazy, but if having the antibodies becomes the cost of entering the job market and thus feeding one’s family, there may be workers who feel pressured into it, I. Glenn Cohen, a bioethics expert at Harvard Law School told Bloomberg.
# Providing fake certificates
There is another possibility of people lying about their own past symptoms. According to Statnews, some people would use another’s immunity certificate – unless it is a photo identity card or requires biometrics like thumbprints, retinal scans, or other identity verification. This could lead to new privacy issues. Also, it can encourage a black market in forged immunity certificates.
Also read | New normal: How coronavirus pandemic will change lives
How will immunity certificates help in response to the coronavirus pandemic?
If experts of some countries are considering adopting the practise of tagging people with their immunity status, it might be of some help in the fight against the deadly COVID-19.
According to Dr Martin Schnell, the plan can only be considered ethical if the authorities keep all the other social distancing measures in place, such as standing 1.5 meters apart or wearing masks, to protect both the healthy and the vulnerable. However, this could be extremely difficult to do in certain scenarios, such as in public transport where many people travel together, he added.
Also read | COVID-19: India can turn this crisis into an environmental and economic opportunity
Is it possible to issue immunity certificates in India?
The number of confirmed coronavirus cases across India has soared past 13,000, with Maharashtra alone recording over 3000 cases, the highest in any state so far.
Of these, as many as 1,748 have been cured / discharged after recovery. So, this population can be tagged with their immunity status.
Now the important question is about the feasibility of issuing such a certificate in India on the basis of the antibody test.
Let’s look at the science first. According to Dr Mahashur, in a country like India, there are so many viruses around, including a variety of coronaviruses, of which COVID-19 is just one type.
So, it would be difficult to detect what antibodies a person has. In such a situation, it won’t be reliable to label a person as immune to COVID-19 with the presence of antibodies, Dr Mahashur told Moneycontrol.
Population is another hurdle in adopting this practice. In a population as huge as India's, measuring antibodies itself is going to be a difficult task, said Dr Mahashur.
Its utility is another limitation.
“So, keeping these factors in mind, I do not feel it is practical to use this test in India”, the doctor added.
Also, in India, the history of "papers, please" is not exactly a shining beacon of freedom. A recent example of this is the Citizenship Amendment Act and the proposed National Register of Citizens, against which people hit the roads and protested massively. In such a country, issuing a paper of immunity could bring another wave of resentment among people who are denied the tag.
Follow our full coverage here. | the worldwide death toll from COVID-19 has risen to over 1,46,500 on April 17. around 550,000 have recovered from the infection. some experts see this figure as a resource for restarting the economy. a vaccine works by mimicking a natural infection. it also helps quickly build herd immunity to put an end to the pandemic. | Positive |
https://www.moneycontrol.com/news/business/markets/early-on-d-street-overall-trend-remains-positive-but-some-profit-booking-likely-4683551.html | live bse live
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Headline indices Sensex and Nifty hit fresh record highs on the F&O expiry day on November 28 as investor sentiment remained positive on the back of positive global cues and strong FII inflows.
Nifty ended at 12,151 while Sensex settled at 41,130, supported by gains in shares of select heavyweights, including ICICI Bank, Reliance Industries and Tata Consultancy Services.
"On the global front, the likely settlement of the first phase of a deal between the US and China has led to positivity with major global indices at their highs. On the domestic side, Strong FII inflows have provided the much-needed support to the market in the absence of any major triggers," said Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services.
Khemka believes that the current momentum can sustain in the near-term on the back of liquidity flows and positive sentiments. However, he added that some volatility is expected due to global news flows regarding US-China settlement and weaker than expected Q2 GDP data which would be released on Friday, November 29.
Gaurav Ratnaparkhi, Senior Technical Analyst at Sharekhan by BNP Paribas thinks Nifty is eyeing 12,350 as the next target.
He pointed out that Nifty on Wednesday had formed an inside bar on the daily chart which broke out on the upside on November 28 as the index crossed the swing high of 12,133. This indicates that the rally is likely to continue further.
Also, the daily Bollinger Bands have started the expansion, which is in the favour of the bulls.
"One can continue to ride the trend as it unfolds on the upside. The broader market indices are also looking to join the benchmark index in its journey towards the north. The next target for Nifty is placed at 12,350. On the other hand, the support zone now shifts higher to 12,055-12,037," said Ratnaparkhi.
The rupee dropped by 27 paise to close at 71.62 against the US currency on November 28, ending its two-day winning run due to month-end dollar demand from oil importers and growth concerns ahead of release of GDP data on Friday.
On the institutional front, FPIs were net buyers in Indian markets for Rs 1,008.89 crore while the DIIs were net sellers to the tune of Rs 155.47 crore, provisional data showed.
Big news
Oil-telecom-to-retail major Reliance Industries made history on November 28 by crossing and closing above Rs 10 lakh crore (trillion) market capitalisation.
It is the first listed Indian entity to reach this milestone. In fact, it created a big gap of more than Rs 2 lakh crore between itself and TCS, the second-highest company in terms of market capitalisation.
Maintaining its overweight call on RIL, last week, global brokerage Morgan Stanley said its bull case target price stood at Rs 2,000 (a potential upside of 27 percent from current levels) on hopes of higher refinery margins, potential telecom tariff hike, bottoming P/E cycle, kickstart of gas production, lower capex and ongoing deleveraging.
Bank of America Merrill Lynch also said the company was expected to touch Rs 14 lakh crore in market cap in the coming months.
Technical View:
Nifty formed a small bullish candle, which resembled a Hanging Man kind of formation on daily charts.
Experts feel as the index moved near its trendline resistance, there could be some sort of profit-booking in the coming days, but the overall trend will remain positive in the medium to long-term.
Mazhar Mohammad, Chief Strategist – Technical Research & Trading Advisory, Chartviewindia.in told Moneycontrol that Nifty can test its critical support on short-term charts which is placed around 11,990 level. However, for the reversal in the short-term trend, the index needs to decisively close below 11,990 levels, he added.
Mazhar Mohammad advised traders to book profits in the next trading session and wait for some pullback in the index before initiating fresh longs.
Three levels: 12,100, 12,159, 12,173
Max Call OI: 12,200, 12,300
Max Put OI: 12,000, 12,100
Stocks in news:
Aurobindo Pharma: USA unit entered in a pact with Profectus BioSciences to buy certain business assets for $11.29 million.
CG Power: The company has cancelled royalty pact worth Rs 411.2 crore with Avantha Holdings.
Kohinoor Foods: Oriental Bank of Commerce has declared the company as wilful defaulters as per RBI guidelines.
Technical Recommendations:
We spoke to IndiaNivesh Securities and here’s what they have to recommend:
Raymond: Buy | LTP: Rs 724 | Target: Rs 770 | Stop Loss: Rs 680 | Upside 6%
Page Industries: Buy | LTP: Rs 22,147.95 | Target: Rs 24,000 | Stop Loss: Rs 21,000 | Upside 8%
UltraTech Cement: Buy | LTP: Rs 4,299 | Target: Rs 4,570 | Stop Loss: Rs 4,150 | Upside 6%
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.
Disclaimer: Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. | headline indices Sensex and Nifty hit fresh record highs on the F&O expiry day. investor sentiment remained positive on the back of positive global cues and strong FII inflows. rupee dropped by 27 paise to close at 71.62 against the US currency on November 28. rupee is expected to be a major player in the global economy. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/yes-bank-krbl-among-24-stocks-that-have-rallied-over-100-from-march-lows/articleshow/75245030.cms |
A handful of smallcap stocks rebounded smartly from their March lows on the bourses in the market recovery seen over the past two weeks. Data showed 24 stocks on BSE more than doubled investors wealth from their 52-week low levels scaled last month.On the top of the chart, the share price of private lender YES Bank soared 342 per cent to Rs 24.55 on April 16 from Rs 5.55 on March 6. Agri-based company Kilpest India, chemicals player Vivimed Labs, diversified player Parle Industries , pharmaceutical player Ortin Laboratories and rice major KRBL also rallied between 125 165 per cent from their year’s low level.Company as well as sector-specific developments mainly drove a couple of stocks. For instance, YES Bank hogged momentum after an SBI-led consortium invested Rs 10,000 crore in the bank, boosting its core capital. As a result, global financial firm Moody's Investors Service upgraded YES Bank’s credit outlook to positive from negative last month.On the other hand, reports of a spike in rice prices in Asian markets to seven-year high supported companies like KRBL during the month. Commodity prices climbed amid panic buying and low supplies due to Covid-19 lockdown in many countries, including India, Thailand and Vietnam.Eros International, Alpa Labs, Mangalam Drugs, Markans Pharma, Zuari Global, Mangalam Organics, Simran Farms, Parag Milks, Morepen Labs, K&R Rail Engineering, Nectar Lifesciences, Coral Labs, Bal Pharma, Ramky Infrastructure, Jindal Photo, Heritage Foods, Shiva Texyarn and Zuari Agro Chemicals were among the players which rallied more than 100 per cent from their lows scaled in March 2020.Sectorwise, pharma stocks gained attention after the government relaxed export curbs on some ingredients and medicines. The BSE Healthcare index has climbed 23 per cent since March 1, while Sensex is marginally down 2.5 per cent during the month. However, the 30-share index gained nearly 4 per cent on a month-to-date basis till April 16.“Q4 earnings and liquidity measures will drive market sentiment from here on. However, we believe markets will consolidate at present levels for the next two weeks,” said Mayuresh Joshi, Head of Research, William O’Neil.Gains in the last one month remained broadbased as more than 350 stocks climbed 50-100 per cent from their 52-week lows on the bourses. Some of the stocks that fall in this category included NBCC, Care Ratings, Glenmark Pharma, Insecticides (India), Rajshree Sugar and Unichem Labs.Value investor Jiten Parmar and partner at Aurum Capital said, “After the recent fall, there is scope for value stocks across the market cap. Growth style and momentum investing remained in limelight for the past two years. I think the value will play out and one should invest in beaten-down quality companies. Telecom, cement and non-ferrous metals look attractive to us.”According to market experts, this is the right opportunity for investors to create an investment portfolio. Taking calculated risks based on individual risk appetite could deliver big returns in the long term. One should accumulate quality stocks in the current market weakness.For stock-specific investors, ICICIdirect recommended Divi’s Labs and Sanofi from the pharmaceutical sector. The brokerage is also positive on HUL, Dabur and Bharti Airtel.Angel Broking is positive on Hawkins Cooker, Asian Paints, Avenue Supermart, Colgate Palmolive, Hindustan Unilever, Nestle India, Bata, Britannia, Dabur and L&T Infotech. | yes bank, Vivimed Labs, parle industries, pharmaceutical player Ortin Laboratories and rice major KRBL also rallied. pharma stocks gained attention after the government relaxed export curbs on some ingredients and medicines. yes bank hogged momentum after an SBI-led consortium invested Rs 10,000 crore in the bank, boosting its core capital. | Positive |
https://www.moneycontrol.com/news/business/markets/spot-demand-global-cues-lift-zinc-futures-3079341.html | South Korean workers unload lumps of zinc produced from North Korea on a cargo ship at a port in Incheon
Zinc futures traded higher by 0.98 per cent on Wednesday as speculators enlarged positions following uptick in demand at the spot markets coupled with a firm trend overseas.
At the Multi Commodity Exchange, zinc for delivery in current month was trading higher by Rs 1.95, or 0.98 per cent, to Rs 201.55 per kg, in a business turnover of 751 lots.
Market analysts attributed the rise in zinc futures to raising of bets by participants on a better trend at spot market on pick-up in demand from consuming industries and a firming trend overseas. | zinc futures traded higher by 0.98 per cent at the multicommodity exchange. speculators enlarged positions following uptick in demand at spot markets. firm trend overseas attributed to uptick in demand from consuming industries. zinc for delivery in current month was trading higher by Rs 1.95 per kg. a business turnover of 751 lots was traded at the multicommodity exchange. | Positive |
https://economictimes.indiatimes.com/industry/services/retail/new-fdi-rules-had-little-impact-on-amazon/articleshow/69066900.cms | Bengaluru: Nearly three months after Amazon.com Inc said India’s revised foreign investment rules would hurt both customers as well as sellers, the e-commerce giant indicated the impact had been minimal in the first quarter of the year, although the claim could not be independently verified in the absence of India-specific revenue or sales data.While the new rules effective February 1 caused a few days of downtime in certain categories, the overall impact on sales was minimal, Amazon told investors in a conference call after announcing its first quarter results on Thursday. “We did make some changes to our structure to stay in compliance with all regulations. There were a few days of downtime for some of our selection. But for the full quarter, the impact was minimal,” chief financial officer Brian Olsavsky said.Amazon’s profit more than doubled in the first quarter to $3.6 billion on sales of $59.7 billion, with its international business growing 9% to $16 billion. More importantly, however, losses in its international business went down significantly to $90 million from $622 million a year earlier, giving it better headroom to invest in cash-burn intensive emerging markets like India.“We’re in compliance and very, very happy with the progress of the business in India,” Olsavsky said during the earnings call. Amazon’s India rival Flipkart, majority owned by Walmart Inc, also told ET recently that the company had not seen any impact with the new regulations kicking in. “We have not seen any issues. We have always embraced the regulatory framework,” Flipkart CEO Kalyan Krishnamurthy said in an interview to this paper.The positive comment came despite a warning to investors by Walmart in its 2019 annual report. The US retailer said “regulatory constraints, such as regulation of product and service offerings including regulatory restrictions on e-commerce offerings in international markets, such as India” could negatively impact its operating results. Amazon and Flipkart have controlled customer experience by keeping their inventory on online marketplaces under check, experts said, adding that both the e-commerce behemoths would rather work around the regulatory changes than tweak this fundamental philosophy. “Regulatory frameworks have been worked around earlier as well,” said Devangshu Dutta, chief executive at consulting firm Third Eyesight, which tracks the retail and consumer product ecosystem.Any public statement by these entities has an element of perception management, Dutta said, adding both Amazon and Flipkart would find a way to cover their margins in the long run even if there is a short term negative impact.In December, the government took a series of measures to tighten the norms for e-commerce companies, barring them from selling products of the entities in which they have a stake. The altered norms also restricted them from mandating any seller to sell products exclusively on their respective platforms. The new rules kicked in from February 1.Amazon divested a part of its holdings in large online seller entities, Cloudtail and Appario, to comply with the changed rules, while Flipkart created a layer of business-to-business entities to act as intermediaries between its wholesale arm and prominent sellers on its platform. | amazon.com says impact on sales was minimal in first quarter of the year. new rules effective February 1 caused a few days of downtime in certain categories. e-commerce giant's profit more than doubled in the first quarter to $3.6 billion. losses in its international business went down significantly to $90 million from $622 million a year earlier. | Positive |
https://economictimes.indiatimes.com/news/international/world-news/us-jobless-claims-hit-3-3-million-quadruple-previous-record/articleshow/74832891.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/markets/masterclass-with-shankar-sharma-be-conservative-dont-be-a-cowboy-in-investing-5667511.html |
Finding multibaggers is a process and by following the process, at the end of 10 years, 2/3/4/5 among all the invested stocks will be brilliant and that’s how you will create the money, Shankar Sharma, co-founder and vice-chairman, First Global, said in an interview with Moneycontrol’s Kshitij Anand.
Edited excerpt:
Q) Your PMS schemes - India focused and Global - both outperformed in July. What led to the outperformance – is it the tactical diversification?
A) India was a different strategy than what we followed globally. In India, our PMS delivered about 9.5 percent compared to the market which was up by about 6 percent, but on a year-to-date (YTD) basis we are up about 20 percent while the markets are still down by about 10 percent - so the gap is massive on a year-to-date basis.
The main lesson to be learned here is that – an investor you have to avoid the big mistakes. If you are able to do that then you are going to beat the markets by a pretty good margin.
Looking back, we saw the danger in February and in March. We sidestepped it, we lost very little money and then we went back into the market on April 1st in India and from there we are up about by about 35-38%, while market is up by about 32-33%.
We have outperformed, and that could happen because we avoided March substantially. The key lesson in investing is to avoid the big down – the big drawdowns.
Otherwise, we can talk about which stocks we have picked? How we tactically positioned ourselves and of course there we have had some very winners. We have had winners in pharma which have going up five times from March, five times.
So, yeah, those have all helped, but those are only small building blocks to the larger point I’m making which is do not become a cowboyed investing that is the most important thing.
On the global front, it was even better because in April itself we saw that the US dollar was going to weaken and therefore we went and bought oil at about $16-17$ that is gone up to $42/bbl now.
We have had gold, silver we bought so that is up like 70-80% in the last two months’ time and of course we have had some great stocks in China which have done phenomenally well and our Switzerland bets have done very well – we were well-diversified globally.
We avoided the big drawdowns in February and March, and that is why we are up about 22 percent on a year-to-date (YTD) basis while markets are still down. So the broad theme is while you can do all the smart stock picks and etc., but be conservative in this game, don't be a cowboy.
Q) I am sure you know this is something like music to your investors and that is something which I see on your Twitter feed as well, a lot of investors are acknowledging the fact that you have outperformed the broader markets or the markets in general? A) I will give you a quick one-line thing we got a message from an investor that we have in our - India and globally - portfolio. The gentleman is a senior executive at a major auto company in Germany. He sent us a mail saying that my whole life – and obviously a very senior person – whole life, the investing journey has changed ever since. I have started investing with First Global because the way you approach things is so different and now I understand the meaning of diversification, and now I understand the meaning of risk management, what it means by position sizing, which I was never told – these were his words. Related stories Shankar Sharma Director & Chief Trading Strategist|First Global Nifty at 16,000: Shankar Sharma warns investors against getting greedy, says stay light
Tech startups such as Zomato and Paytm unlikely to become the next HDFC Bank or TCS after IPOs, says...
D-Street Talk: Shankar Sharma on why he did not invest in Zomato IPO The letter further added that initially he use to buy 5 stocks that are likely do well, four would tank 80% and net-net, he would still lose money. So the point is that you can do it by following strict process scientifically and like I said avoid the big dangers, big drawdowns you will come I had in investing. Q) I was going through your Twitter feed and interestingly you bought HDFC Bank back in 1996. It has been a mega wealth creators for investors. What does the journey hold for the private sector lender amid a change in management? A) Yeah, so I mean, first and foremost, I mean nobody knew nobody. I don’t think Aditya Puri ever knew that this bank would become so big. In hindsight, we can all say I saw this coming and all that, buy nobody saw this coming. Our bet was that it was going to do very well and we put out our piece of research in ’96 which said exactly that putting a baby and Arnold Schwarzenegger together side by side. We wanted to say that this baby is going to become Arnold Schwarzenegger, and it did become Arnold Schwarzenegger, but hey, to say that we actually saw all that, I mean that is being very, very immodest. In reality, it was always a good bet, back then great management team, but that would become so big, nobody knew, 25,000 percent return. Aditya Puri is not an entrepreneur by definition, right, he was a career banker. Here too, he was an employee, a founder employee but still an employee. I don’t think in the history of business at least in India and frankly, even globally you have seen an example of an employee creating an organization of this size, scale, and excellence. I don’t think it is matched across the world, forget about India.
Therefore, if you see this achievement, and expect that the next guy will be as good as Aditya Puri, I mean, fingers are crossed, it’s a great, great company, it’s a huge machine, and as long as you don’t fiddle around too much, it can still keep running, but these are going to be big shoes to fill and let’s hope and pray that a great organization institution like HDFC Bank continues doing.Remember HDFC as a group has been founded only by employees becoming entrepreneurs okay, that’s been the nature of the HDFC group, and they have got that DNA. Hopefully, the same DNA will continue even in the future. Q) You have got the Midas touch when it comes to picking winners. So any stock idea for our listeners that could turn in to Gold? A) No, first and foremost, I don’t have any Midas touch, let me be absolutely clear, okay. The whole point in investing as I said earlier as well that do not put all your eggs in one basket -- that is silly and stupid way of investing. One could buy 25 stocks with some good research. Out of the 25 at the end of 5 or 10 years, 5 will become multibaggers, in another 5 you might end up losing maybe 25-30-40% which have exited, and the balance will be along with the market whichever way the market has gone. So your five are going to come out buying 25, your five are not going to come out buying only those five because nobody can predict. Finding multibagger is a process and we follow a process and that is how these things will come about. A pharma stock we bought in March which is up 5x came out of the process, and it didn’t come out of a brainwave. By following the process, at the end of 10 years, out of 25 stocks, 2/3/4/5 will be brilliant and that’s how you will create the money. Now as we speak right, I mean, India has been a very strange market wherein one part of the market has done terribly but there are other parts which like you said one of the stock I have mentioned right now without taking names, a 5X in four months is huge. In India, right now the interesting spaces remain telecom as well as pharmaceuticals. And also focus on sectors that have not been hurt by this pandemic. Sectors that are hurt by this pandemic, we all know which sectors they are. While they are going to have a rally and they will basically go up from the lows we still think there are risk there. Like I said, in investing as long as you avoid the riskiest areas of the market you will make money. Investors should also remember one more thing -- one should not as an investor try to make all the money that is supposed to be made in the market because many stocks will go up. Many stocks will go up in the market, and you don’t have to buy all of them. You should buy and get the ones which give you the best risk and reward tradeoff, as simple as that. And we find that there is plenty of them are available, it’s not that they are not available. We have chosen to stay out of banks and NBFCs and we are quite thankful or that. In the month of June, we actually underperformed because of that a lot of the NBFC rallied. We all know which one, right? But, I prepared to sit out those part because there are still dangers ahead. Q) Do you think the outcome of the US elections will have an important bearing on the equity markets across the globe? A) I don’t think, I think a lot of this is all nonsense when people keep trying to figure out what happens to the presidential election and therefore which will happen to the stock market. In the US, the government and the president they don’t really control much in the economy unlike India, right? Policies are drafted and driven by who which party is in power and who was leading and all that -- US is more like a machine, it doesn’t really matter, whether Trump or Biden who really cares as long as the central bank remains accommodative. As long as the central bank remains accommodative – equity markets will be fine there and if they are fine there in general other markets will also be fine that’s and of course as long as corporate numbers are good and companies do well. I don’t think one individual matters so much in the context of the US, it matters a lot in India, but it definitely doesn’t matter in a large machine like the US economy. Q) What is your take on the commodity prices all seems to be heading in one direction and that is up be it crude oil, Gold, Silver, etc. Nasdaq has already touched a record high, do you think tracking the momentum India could follow the trend? A) Yeah, so we picked all these commodities in April. We have written about it also in our investors' updates which are monthly. We have done very well because of having commodities and commodities-centric markets. We had Russia, we had Brazil which is up 50% in the last couple of months. So, obviously there is a reasonable bit of expectation that commodities will do well. In that context, if you see India then a number of the commodity stocks have done very well. So, if you look at steel or you see the aluminum, those stocks have done pretty decently in India in the last couple of months. I can’t take names. So, you can play some of these themes even in India and we have these names in our portfolio and that is another reason why we have done well. Few stocks have done phenomenally well in the last couple of months that are up 30-40%.
| first global's 9.5 percent PMS delivered in india compared to the market. on a year-to-date basis we are up about 20 percent while the markets are still down by about 10 percent. the key lesson in investing is to avoid the big down - the big drawdowns. pharma has gone up five times from march, five times. | Positive |
https://economictimes.indiatimes.com/markets/stocks/recos/buy-apar-industries-target-price-rs-423-emkay-global/articleshow/77457639.cms | Emkay Global has given buy rating to Apar Industries with a target price of Rs 423. The share price moved up by 0.12 per cent from its previous close of Rs 303.75. The stock’s last traded price is Rs 304.10.Apar Industries Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 1167.00 Crore) operating in Diversified sector.For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1284.06 Crore, down -28.70 % from last quarter Sales of Rs 1800.88 Crore and down -34.75 % from last year same quarter Sales of Rs 1967.86 Crore Company has reported net profit after tax of Rs -23.07 Crore in latest quarter.The brokerage said that it had recently lowered FY21/FY22 revenue and EPS estimates steeply, factoring in lower order executions and postponement of new tenders. Discoms continue to face liquidity as its outstanding dues toward the gencos rose to Rs1.31tn as on June’20. However, the loan disbursement under the government’s ‘Atmanirbhar’ scheme has increased to Rs180bn and total of Rs670bn has been sanctioned by the PFC/REC, which will be disbursed by Q3FY21. Also, the discoms’ collection efficiency has improved since June’20 and the opening up of the economy in the phased manner will revive the demand for oil and cable products. It believes that the domestic business activity would normalize by Q4FY21 and FY22 would see revival in revenues and earnings for the company, with the execution of better-margin products. Accordingly, it has maintained earnings estimate for FY21/22 and reiterates Buy with a TP of Rs 423 (at 10x FY22E EPS). Key risks include a prolonged slowdown in business activity, rising receivables and doubtful debt.Promoters held 59.7 per cent stake in the company as of June 30, 2020, while FIIs held 5.9 per cent, DIIs 23.4 per cent and public and others 11.1 per cent. | Emkay Global has given buy rating to Apar Industries with a target price of Rs 423. the share price moved up by 0.12 per cent from its previous close of Rs 303.75. the stock's last traded price is Rs 304.10.. apar is a small cap company (having a market cap of Rs 1167.00 Crore) operating in Diversified sector. | Positive |
https://www.moneycontrol.com/news/business/economy/india-gdp-q1-data-farm-activity-shows-promise-can-it-engineer-a-solid-rebound-5779811.html | The farm sector, which contributes around 17 percent to India's GDP, has helped in arresting a much deeper fall in economic growth.
According to the data released by the Central Statistics Office on August 31, the agriculture sector, aided by good rains, grew 3.4 percent in the first quarter of 2020-21 against 3 percent during the same period last year.
The first quarter agricultural GDP includes production from the rabi season, which ends with harvesting in April-June. The Agriculture Ministry has pegged the output of wheat, chana and other rabi food grains 5.6 percent higher than last year.
During the lockdown period, the Food Corporation of India launched a massive operation to complete procurement and make payments to farmers.
For farmers, agricultural growth in nominal terms, after adding inflation, assumes importance.
According to Sreejith Balasubramanian, Economist — Fund Management, IDFC AMC, the government's spending on the rural economy, sale of tractors and support through MGNREGA have all been positive but it is probably still a case of over-optimism.
A report by India Ratings said the government needs to have a well-crafted strategy in place, both to continuously monitor the progress of the kharif crop and prevent its distress sale, with harvesting expecting to begin in a month's time.
The government is confident that the 2020-21 crop year would report an all-time record output of food grains and cross the target of 298 million tonnes.
While the industrial and services sectors are still struggling from disruptions caused by the coronavirus, the agriculture sector can become an engine for recovery.
Besides agricultural output, it is believed that many factory workers who returned to their native places in the aftermath of the nationwide lockdown will add to the rural demand.
Follow our coverage of the coronavirus crisis here | agriculture sector grew 3.4 percent in the first quarter of 2020-21 against 3 percent last year. government spending on rural economy, sale of tractors and support through MGNREGA have all been positive. agriculture sector can become an engine for recovery, says nadine. rabi food grains output is 5.6 percent higher than last year. nadine: "the government is a pillar of the country's economic recovery" | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/indias-bharti-and-uk-win-auction-for-satellite-operator-oneweb-report/articleshow/76780784.cms | KOLKATA: A consortium of India’s Bharti Enterprises and the UK government has won a bid to take over OneWeb , offering to invest $1 billion (Rs 7,465 crore) in the British firm that went bankrupt while trying to build a constellation of satellites to deliver wireless broadband globally.The two partners will invest $500 million each in OneWeb, which aims to provide high-speed, low-latency broadband services, especially in rural areas, and take on the likes of Elon Musk’s SpaceX Starlink and Jeff Bezos’s Amazon-linked Project Kuiper.The British government will take a significant equity share in OneWeb, UK business secretary Alok Sharma said in a statement. Bharti, he said, would provide commercial and operational leadership, and bring OneWeb a revenue base to contribute towards its future success.The UK and Bharti, which is making the investment through overseas arm Bharti Global, didn’t announce how much stake they would own until press time Friday. People in the know said each would get a 45% stake, with existing investors retaining the remaining 10%.“Bharti will be leading the effort to deliver the promise of universal broadband connectivity through OneWeb, with active support and participation of the British government,” Bharti Enterprises chairman Sunil Mittal said in a separate statement.Sunil Mittal’s son Shravin, as a director of Bharti Global, led the bid for the Bharti Enterprises arm which has numerous investments across telecoms, technology, hospitality, transportation and energy segments.Bharti Enterprises, the holding company of Bharti Airtel, India’s second largest telco, was one of the founding members of OneWeb and had a strategic stake in the company prior to the latest developments.OneWeb was founded in 2014 by entrepreneur Greg Wyler. It had raised about $3.3 billion in debt and equity from a clutch of investors such as SoftBank , Airbus, Qualcomm, Coca Cola, Intelsat and Grupo Salinas. It collapsed into bankruptcy in March after its biggest investor, SoftBank, pulled back its funding. An auction was held on Thursday.The new proposed investment, which is expected to help the company complete construction of the constellation, is subject to a clearance from a US court and other regulatory approvals, and is expected to close before the end of the year, the UK government said in its statement.Mittal said this business had “substantial commercial use cases” across the telecoms, enterprise, aviation and maritime sectors, and with strong operational execution, Bharti would be able to generate an attractive return for investors, while also ensuring Britain plays a leading role in space and next-generation communications.“Further, India’s leading-edge capabilities in the space programme through the Indian Space Research Organisation can be leveraged to accelerate OneWeb’s ambitions,” he added.Rajiv Sharma, the research head at SBICaps Securities, said: "The deal could potentially catapult the Bharti Group to the big league in the global satellite communications space with the likes of Elon Musk's SpaceX Starlink and Amazon's Project Kuiper, although challenges remain in delivering affordable satellite broadband services in the absence of low-cost terminals."He though added that Bharti's partnership with the UK government could prise open new revenue streams, as OneWeb was likely to participate in multiple government projects for delivering high-speed satellite broadband connectivity in rural markets around the world.OneWeb has estimated assets in the range of $1 billion to $10 billion and liabilities in the same range, according to US bankruptcy court filings. | consortium of india’s Bharti Enterprises and the UK government has won a bid to take over oneweb. they will invest $500 million each in the company, which aims to provide high-speed, low-latency broadband services. the company collapsed into bankruptcy in march after its biggest investor, SoftBank, pulled back its funding. the new proposed investment is subject to a clearance from a US court and other regulatory approvals. | Positive |
https://www.businesstoday.in/current/corporate/future-consumer-joins-hands-with-t-choithrams-to-foray-into-middle-east-market/story/319886.html | Future Consumer (FCL), the FMCG arm of Future Group, on Monday said it has entered into an arrangement with the Middle East's leading chain of retail supermarkets, T Choithrams & Sons, for selling its products in the Middle East.
"FCL and Choithrams have identified an opportunity to strategically partner across the UAE, Bahrain and Qatar to bring FCL's portfolio of leading brands to consumers across the Middle East," FCL said in a filing to the Bombay Stock Exchange.
With a network of more than 60 supermarkets across UAE, Bahrain and Qatar, Choithrams will, market, distribute and retail FCL brand products for sale through its own stores, as well as distribute FCL brands to other retail stores, it said.
Under this agreement, FCL will be leveraging Choithrams' reach to export and distribute its core brands under various product categories, comprising initially the - Tasty Treat, Sangi's Kitchen, Desi Atta Company, Golden Harvest and Mother Earth.
Kishore Biyani-led company has partnered with Choithrams during the Gulfood Dubai 2019 show, it added.
Commenting on the development, Ashni Biyani, Managing Director, Future Consumer said, "Future Consumer Limited has developed a strong presence in India. Our partnership with Choithrams will help us explore international markets for our products, and make our leading brands available to consumers across the Middle East."
Meanwhile, shares of the company closed trade at Rs 43.65 apiece, up 2.46 per cent, on the Bombay Stock Exchange on Monday.
(With inputs from PTI)
Also Read: Baba acknowledged unpaid dues that crippled the Singh empire in May, 2018; Malvinder submits evidence to EOW
Edited by Chitranjan Kumar | future consumer enters agreement with leading supermarket chain for selling its products in the Middle East. the deal will see the company market, distribute and retail FCL brand products through its own stores. the deal is part of a partnership between future group and a number of other retailers. the company has a network of more than 60 supermarkets across the UAE, Bahrain and Qatar. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/slow-recovery-in-markets-seen-as-covid-19-risks-persist-cash-still-king-bofa-survey/articleshow/75823078.cms | Tokyo shares hit 2-1/2 month high on hopes for swift reopening of economy
Nomura downgrades Dr Lal PathLabs to reduce, cuts target price
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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/sensex-nifty-jump-up-to-2-5-factors-behind-the-market-rally-5372651.html | The Indian market benchmarks Sensex and Nifty ended in the green on June 8, supported by gains in shares of select heavyweights such as Infosys, Axis Bank, Bajaj Finance and TCS as investor sentiment improved after easing of lockdown.
The BSE Sensex closed 83 points, or 0.24 percent, up at 34,370.58, while Nifty settled 25 points, or 0.25 percent, up at 10,167.45. BSE Midcap and Smallcap indices closed 0.23 percent and 0.93 percent higher, respectively.
Sectorally, Oil & Gas emerged as the top gainer, ending 2.79 percent higher, followed by IT, Teck and Industrials, each gaining over a percent.
Here are the top five factors that underpinned the rally in the market.
Unlock 1.0 begins
The first phase of 'Unlock India' began June 8, with malls, restaurants, hotels and places of worship reopening across the country but with some restrictions.
Market observers see this as one of the major reasons behind rising markets, as investors hope that the economy will gradually come back on track.
Unlock 1.0 is the first of a three-phase plan for the reopening of areas that have fewer coronavirus cases, with a stringent set of conditions that will remain in place till June 30.
Foreign fund inflow
After three months of selling, foreign portfolio investors seem to have turned bullish on the Indian market. Data from NSDL shows that FPIs have invested Rs 18,613 crore in the Indian market in June, so far, as sentiment improved amid graded lifting of lockdown.
Besides, Reliance Industries' mega rights issue, which closed during the week and was oversubscribed, and stake sale of 2.8 percent by Uday Kotak in Kotak Mahindra Bank attracted significant foreign flows.
NSDL data shows, in March, April and May, FPIs took out Rs 1,18,203 crore, Rs 14,859 crore and Rs 7,356 crore, respectively, from the Indian market.
Experts say FPIs have been investing in fundamentally strong blue-chip companies and this trend is likely to continue.
Positive global cues
Positive global cues also underpinned the rally in the Indian market.
Major stock markets of the world edged higher on June 8 after a surprise recovery in US employment data provided hope that global economies could quickly revive after many weeks of lockdowns to check the spread of the coronavirus, reported Reuters.
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 percent, extending its bull run to the eighth consecutive day.
Japan's Nikkei, China's Shanghai Composite Index, Korea's Kospi were all trading in the green.
Traction in banking, financial stocks
The Nifty Bank index ended 0.73 percent higher at 21,187.35.
Shares of IDFC First Bank, IndusInd Bank, Bandhan Bank and Axis Bank jumped up to 7 percent.
The Bank Nifty may accelerate its upside movement by more than 1,500 points. The first level we may see on the index is 22,000, and then 22,500, Sumeet Bagadia, Executive Director at Choice Broking, said in an interview to Moneycontrol.
Technical factor
As per technical charts, market experts believe te Nifty is not eyeing 10,500.
"The positioning of RSI-Smoothened indicates the possibility of extending this move towards 10,500-10,700 levels. Hence traders are continuously advised to stay on the positive side as long as 9,900 is being held," said Sameet Chavan, Chief Analyst-Technical and Derivatives at Angel Broking.
Nifty's weekly charts are projecting strength in the medium-term with back-to-back strong bullish candles, say experts. Hence, on correction, any stability in the 9,700–9,550 zone shall be considered an opportunity to create fresh longs.
The day's gap-up opening above the important resistance level of 10,200 made the Nifty enter into the new zone near 10,500.
"The market saw a gap-up opening at 10,326, which is above the important resistance level of 10,200. This makes the Nifty enter into the next zone where we should be projecting a new level of 10,450-10,500. The support for this market now lies at 9,950-10,000," said Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments.
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. | the Sensex and Nifty ended in the green on June 8. the sectorally, oil & gas emerged as the top gainer, ending 2.79 percent higher. a soaring rupee led the market to a 0.3 percent gain on the week. a soaring rupee led the market to a 0.3 percent gain on the week. | Positive |
https://www.businesstoday.in/markets/stocks/hdfc-amc-lists-nse-bse-58-percent-premium-issue-price/story/280993.html | HDFC Asset Management Company, the country's second-largest mutual fund firm, listed at a 58% premium over issue price of Rs 1,100 per share on bourses today.
The stock listed at Rs 1,739 per share on the BSE.
It hit an intra day high of 1,832 per share. At 10:06 am, the stock was trading at 1,821 level, 65.55 percent or 713 points higher than its issue price.
The HDFC AMC stock later closed 65.01% or 715.15 points higher at 1815 level on BSE. It rose 4.38% higher than the listing price of 1739 level.
The market capitalisation of the AMC on BSE stood at Rs 38,479.15 crore on the first day of its listing on the bourses.
The IPO, which opened on July 25, 2018, received strong response from investors with the issue subscribed 83.05 times on the last day of the bidding process on July 27.
Against the issue size of 1,88,04,290 shares, the IPO received bids for 1,56,17,60,954 shares.
Should you hold the stock?
According to Equinomics, in the short to medium term, the valuation is highly stretched. At current price, it trades at 53 times FY2018 earnings and 41 times FY2019E earnings, assuming 30% yoy growth in profits, in line with the trend. The market cap is 12.8% of its AUM, which is quite highly stretched valuation. The short-term investors and traders may consider booking profits in phases (as some of previous IPOs from the financial services industry moved up tactically beyond what fundamentals would dictate before correcting quite significantly) for every significant rises from the current levels. Those long-term investors, who are willing to wait for more than 2 to 3 years, may hold it.
The IPO, only the second one from the mutual fund industry, aimed to raise Rs 2,800 crore in one of the biggest IPOs in India this year.
The IPO was available at a price band of Rs 1,095 to 1,100 per share.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation (HDFC) and Standard Life Investments.
Shares were available for bidding in lots of 13 equity shares and multiples thereof. The fund house had filed preliminary papers with Sebi in March, seeking its approval to float an IPO.
Ahead of the share sale, HDFC Asset Management Company garnered Rs 732 from anchor investors July 24, 2018. The company's IPO committee finalised allocation of 66,53,265 equity shares to 35 anchor investors at Rs 1,100 per scrip, the firm said. At this price, the total proceeds amounted to Rs 731.86 crore.
Camas Investments, Reliance Strategic Investments, Goldman Sachs (Singapore), Abu Dhabi Investment Authority - Relval, FIL Investments (Mauritius), HSBC Indian Equity Mother Fund, SBI Large and Mid Cap Fund, Kotak Emerging Equity Scheme and Smallcap World Fund, Inc were among the anchor investors.
HDFC AMC, which has a total asset under management of over Rs 3 lakh crore as of March-end, is the country's second largest fund house after ICICI Prudential AMC that has an asset base of Rs 3.06 lakh crore during the same period.
It has become the second AMC to hit the markets after Reliance Nippon Life AMC, which had raised Rs 1,542 crore last year.
Book running lead managers to the issue were Kotak Mahindra Capital Company, Axis Capital, DSP Merrill Lynch, Citigroup Global Markets India Private, CLSA India, HDFC Bank, ICICI Securities, IIFL Holdings, JM Financial, JP Morgan India, Morgan Stanley India Company and Nomura Financial Advisory and Securities (India). Karvy Computershare is registrar to the issue.
The shares of HDFC AMC were listed on BSE and NSE.
Written and edited by Aseem Thapliyal | the stock listed at Rs 1,739 per share on the BSE. it hit an intra day high of 1,832 per share. the market capitalisation of the AMC on the bourses stood at Rs 38,479.15 crore. the IPO received bids for 1,56,17,60,954 shares. the market cap is 12.8% of its AUM. | Positive |
https://www.businesstoday.in/news/sensex-today-live-sensex-rises-100-points-nifty-above-11-990-thomas-cook-rises-over-4-ahead-of-results/story-liveblog/113.html | 9:57 AM (4 years ago)
Centre approves Rs 25,000 cr funding to finish stalled housing projects
Posted by :- Rupa Roy
Realty shares on Thursday traded higher after Union Cabinet approved formation of a bailout fund worth Rs 25,000 crore to finish stalled housing projects in the country.
Reacting to the news Indiabulls Real Estate traded nearly 5% higher, Sobha Limited rose 2.5%, followed by 1.5% rise in Oberoi Realty Limited and 1.25% advance in Prestige, DLF and Godrej Properties.
Talking to media after the Cabinet meeting on Wednesday, Finance Minister Nirmala Sitharaman said that the government has approved forming a special window which is to be structured as an alternative investment fund. The government will infuse Rs 10,000 crore in the relief fund.
"Government will give Rs 10,000 crore. We have already spoken with institutions like SBI, LIC and so on, who together will also put money which will touch Rs 25,000 crore. This will be kept open. Several sovereign funds have also expressed interest to come into it. Gradually, we will keep adding to the AIF corpus," the Finance Minister said. | a bailout fund worth Rs 25,000 crore is approved. government will infuse Rs 10,000 crore in the relief fund. a 5% rise in shares of indiabulls real estate is seen as a positive. a 1.25% rise in shares of Oberoi Realty and Prestige are among the biggest gainers. a 1.25% rise in a 1.25% rise in a 1.25% rise in a 1.25% rise. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/australia-shares-end-at-1-month-high-on-china-trade-data/articleshow/75138115.cms | Australian shares closed at a one-month high on Tuesday, as better-than-expected data from its biggest trading partner China outweighed fears over the deepening economic impact from the coronavirus pandemic.The S&P/ASX 200 index ended 1.9 per cent higher, or 100.8 points, to 5,387.3.Data showed China's exports in March signalled a modest recovery in the world's second-largest economy, prompting investors to look past a survey that showed domestic business and consumer sentiment falling to a record low in March."The market is still on the hopium that massive government stimulus will save the day," Brad Smoling, managing director at Smoling Stockbroking said."Both supply and demand will take a very long time to heal. I am selling into rallies and see another big downward leg on the horizon."Rising fears of a steeper economic downturn pushed gold prices to a seven-year peak.The Gold index surged 11 per cent to end at its highest in over a month, with largest-listed gold miner Newcrest Mining climbing 12.4 per cent in its best session since November 2008.The energy sub-index rose 1 per cent, as heavyweight Woodside Petroleum gained 0.7 per cent and Oil Search tacked on 1.9 per cent.Oil prices saw a modest rise of 1 per cent even as major producers agreed to rein in supply and the main U.S. energy forecasting agency said shale output in the world's biggest crude producer would see a record fall in April.In the financial sector, all the "Big Four" Australian banks gained over 1 per cent, while no. 3 lender National Australia Bank rose 2.9 per cent.Second-largest lender Westpac Banking Corp reversed early losses to end 2 per cent higher, even after the bank said it expected lower first-half earnings and higher credit losses.New Zealand's benchmark S&P/NZX 50 index gained 2 per cent or 195.12 points to finish the session at 9,963.90, a more than one-month high.Dairy producer A2 Milk Company gained over 5.2 per cent, while New Zealand-listed shares of lender Westpac Banking Corp gained 2.5 per cent. | the gold index surges 11 per cent to end at its highest in over a month. gold prices rise 1 per cent as major producers agree to rein in supply. the energy sub-index rises 0.1 per cent as woodside Petroleum gains 0.7 per cent. all the "Big Four" banks gain over 1%, while no. 3 lender National Australia Bank rises 2.9 per cent. | Positive |
https://www.businesstoday.in/current/economy-politics/centre-launches-three-new-schemes-to-promote-electronics-manufacturing-in-india/story/405733.html | To make India a global leader in electronic manufacturing, the government on Tuesday has announced three schemes worth of Rs 50,000 crore. The new schemes - Production Linked Incentive Scheme, Component Manufacturing Scheme, and Modified Electronics Manufacturing Clusters Scheme - will be implemented from June 2 for the development of electronics manufacturing sector in India.
The triology of schemes that entail an outlay of about Rs 50,000 crore (approximately $7 billion), will help offset the disability for domestic electronics manufacturing, which will strengthen the electronics manufacturing ecosystem in the country. The three schemes together will enable large scale electronics manufacturing, the domestic supply chain of components and state-of-the-art infrastructure and common facilities for large anchor units and their supply chain partners. These schemes are expected to contribute significantly to achieving a $1 trillion digital economy and a $5 trillion GDP by 2025. The three new schemes are expected to attract substantial investments, increase the production of mobile phones and their components to around Rs 10,00,000 crore by 2025 and generate around 5 lakh direct and 15 lakh indirect jobs.
Launching the new schemes, Minister of Electronics and IT Ravi Shankar Prasad said, "Self-reliant India is not an India of isolation or not an inward-looking country. It is an India that enhances its capacity and develops a strong ecosystem as well as a robust supply chain linked with the global economy."
"There are 5-6 large companies that control 80 per cent of the global mobile market. Initially, the government will pick up five global champions, who the production linked incentive, shall be permitted to participate. The second most important things is we want to make Indian national champions. Let Indian companies also become national champions. And the Global and the Local will together make India a good manufacturing-talented country, supporting the global chain. We will five global and five Indian companies" says the minister.
India has emerged as the second largest mobile manufacturer in the world. The value of 6 crore mobiles produced in 2014-15 was Rs 18,992 crore. In 2018-19 it increased to Rs 1.7 lakh crore in value and 30 crore in terms of units. "When Modi government had come to power in the year 2014, the electronics manufacturing production in terms of its value in India was Rs 1,90,366 crore and today in the year 2018-19 it has risen to Rs 4,58,000 crore" added the minister.
Promotion of electronics manufacturing has been a key component of Make in India program. According to the government, with efforts such as the National Policy on Electronics, 2019, Modified Special Incentive Scheme (MSIPS), Electronics Manufacturing Clusters and Electronics Development Fund etc, India's production of electronics grew from $29 billion in 2014 to $70 billion in 2019. While the exports of electronics has increased from Rs 38,263 crore in 2014-15 to Rs 61,908 crore in 2018-19, India's share in global electronics production has reached 3 per cent in 2018 from just 1.3 per cent in 2012.
CEAMA's official Twitter account tweeted, "We welcome the announcements by @GoI_MeitY which entails an outlay of Rs 50,000 crore. These steps will strengthen the electronics manufacturing ecosystem in the country and will provide much-needed impetus to domestic manufacturing. We @CEAMAindia have always advocated the same. We fully support the Govt in its goal of making India the global manufacturing hub."
According to a government scheme, the PLI Scheme shall extend an incentive of 4 per cent to 6 per cent on incremental sales (over base year) of goods manufactured in India and covered under the target segments, to eligible companies, for a period of five years subsequent to the base year. The SPECS shall provide a financial incentive of 25 per cent on capital expenditure for the identified list of electronic goods, i.e., electronic components, semiconductor/ display fabrication units, Assembly, Test, Marking and Packaging (ATMP) units, specialized sub-assemblies and capital goods for manufacture of aforesaid goods. The EMC 2.0 shall provide support for the creation of world-class infrastructure along with common facilities and amenities, including Ready Built Factory (RBF) sheds / Plug and Play facilities for attracting major global electronics manufacturers, along with their supply chains. | government announces three schemes worth of Rs 50,000 crore. the schemes will help offset the disability for domestic electronics manufacturing. the schemes are expected to contribute significantly to achieving a $1 trillion digital economy and a $5 trillion GDP by 2025. india has emerged as the second largest mobile manufacturer in the world. the scheme is expected to generate around 5 lakh direct and 15 lakh indirect jobs. | Positive |
https://www.businesstoday.in/technology/xiaomis-new-30000mah-mi-power-bank-3-can-charge-iphone-se-10-times/story/406815.html | Xiaomi's ever-growing product portfolio now includes its biggest power bank yet. The company has launched the Mi Power Bank 3 with a massive 30,000mAh battery capacity, enough to charge the latest iPhone SE more than 10 times and its own flagship Mi 10 about 5 times. The latest power bank from Xiaomi is a big upgrade over Power Bank 2 and comes in a rock-solid design. It has been launched in China for now, but Xiaomi may bring its latest power bank to other markets, including India.
Xiaomi Mi Power Bank 3 Price
The Xiaomi Mi Power Bank 3 comes at a price of CNY 170, which translates to approximately Rs 1,800. If the company decides to bring the Power Bank 3 to the Indian market, the pricing of Rs 1,800 could be quite attractive. Recently, Xiaomi-rival Realme launched its new power banks in China, which are now expected to launch in India.
In China, the Mi Power Bank 3 goes on sale via JD.com starting June 18.
Xiaomi Mi Power Bank 3 Design, Features
The build quality of the Mi Power Bank 3 is seemingly robust. It is a rectangular slab with one too many ports on one side. The power bank has two USB-A ports, one USB-C port, and one Micro-USB port. The USB-A and USB-C ports are rated to deliver the 18W fast charging to the connected smartphone, given it also supports the same charging rate. Most of Xiaomi's latest smartphones come with 18W fast charging or more. Meanwhile, the latest iPhone SE 2020 also has 18W fast charging.
Xiaomi has given the Mi Power Bank 3 a low-power mode for products such as smartwatches and wireless earbuds, which do not require a high voltage and are charged rather more quickly than smartphones. Most power banks have issues providing the required current to these gadgets. To enable the low-power mode on the Power Bank 3, the button given on the side needs to be pressed twice.
The Mi Power Bank 3 comes with 24W charging for itself using the USB-C port. There is a cable bundled with the power bank. However, when using a 30W Xiaomi charger, which will need to be procured from a smartphone, the battery pack will charge even faster. The USB-A port can charge the power bank at only up to 18W.
Xiaomi's latest power bank could sell like hotcakes in India, where people rely on power banks to charge their smartphones multiple times without needing to be around the main power source. | Xiaomi's latest power bank is a huge upgrade over Power Bank 2. the power bank has a massive 30,000mAh battery capacity. it can charge the latest iphone SE more than 10 times and its own flagship Mi 10 about 5 times. the power bank is expected to launch in india on june 18. Xiaomi is also expected to launch a power bank in the u.s. | Positive |
https://www.moneycontrol.com/news/business/companies/from-sun-to-cipla-biggest-mas-in-the-indian-pharma-industry-that-made-profits-or-bombed-2537993.html | 1/12 Aurobindo Pharma-Actavis Europe business acquisition | Year: April 2014 | Deal size: EUR 30 million (USD 36.9 million) Objective: Expand presence and portfolio in Europe Result: The acquisition turned profitable within two years of acquisition. (Image: Reuters)
2/12 Aurobindo Pharma-Natrol acquisition | Year: December 2014 | Deal size: USD 132.5 million Objective: To foray into nutraceuticals in the US. Result: The acquisition turned profitable from the second year with revenue from the acquired business increasing by over 12 percent CAGR over FY15-17. Natrol continues to be a stable growth contributor for Aurobindo’s OTC franchise. (Image: Reuters)
3/12 Jubilant-Draxis acquisition | Year: April 2008 | Deal size: USD 255 million
Objective: To access high-end radiopharmaceutical market in North America.
Result: The acquisition was profitable from the second year. However, the US launch of Ruby-Fill, at the time of acquisition, was delayed and the product was eventually launched in 2017. (Image: Reuters)
4/12 Sun Pharma – Taro acquisition | Year: September 2010 | Deal size: USD 273 million Objective: To strengthen US portfolio and bet on a turnaround of the business. Result: Taro has been one of Sun’s most lucrative acquisitions, with payback within 3 years and return-of-capital of 641 percent. The acquisition strengthened Sun Pharma’s presence in the US.
5/12 Piramal-Mallinckrodt pain portfolio acquisition | Year: January 2017 | Deal size: USD 273 million
Objective: Get a portfolio of intrathecal spasticity and pain management drugs.
Result: Yet to see any impact of the deal. (Image: Reuters)
6/12 Torrent Pharma-Elder portfolio acquisition | Year: December 2013 | Deal size: USD 323 million
Objective: To expand India portfolio and scale up sub-optimal products.
Result: Elder's portfolio acquisition turned out to be highly profitable for Torrent, with 23 percent CAGR of Elder’s brands over FY14-17. Torrent, the 12th largest (in terms of IMS sales) pharma players in India increased its market share from 2.0% to 2.7% in the country. (Image: Reuters)
7/12 Dr Reddy’s-Teva (8 ANDAs/generic filings) | Year: June 2016 | Deal size: USD 350 million Objective: To strengthen US presence Results: Yet to deliver. Company awaits the launch of major products from the deal that are held up due to regulatory and patent-related issues. (Image: Reuters)
8/12 Cipla-InvaGen/Exelan acquisition | Year: September 2015 | Deal size: USD 550 million Objective: To scale-up its US generics business and have a manufacturing presence in that market. Results: The InvaGen/Exelan buy has expanded Cipla’s US base, but failed to deliver on the commercial potential of limited competition filings such as generic Renvela and generic Fosrenol. Since the acquisition, Cipla has already taken USD 110 million of impairments on the acquisition, which accounts for nearly 20 percent of the acquisition cost. (Image: Reuters)
9/12 Dr Reddy’s-Betapharm acquisition | Year: February 2006 | Deal size: USD 571 million Objective: To get access to large, high-margin German generic pharma market. Result: Was a disaster for Dr Reddy's. Germany's policy move to source most medicines from the lowest-cost vendor through a tender-based model hurt the company. By FY10-end, Dr Reddy’s had written off all the intangible assets and goodwill attributable to the Betapharm acquisition. (Image: Reuters)
10/12 Lupin-Gavis acquisition | Year: July 2015 | Deal size: USD 880 million Objective: To expand its US portfolio, especially pain management drugs (controlled substances) and get manufacturing base in the US. Result: Expensive deal with Lupin paying 9.2 times of Gavis sales, largest ever overseas acquisition by an Indian drug maker. Contribution from Gavis has been below expectations so far. The pace of approvals has been slow and the US crackdown on use of opioids isn’t helping matters. So far, sales are nowhere close to the expectation of the much-tempered target of USD 200 million in FY18. (Image: Reuters)
11/12 Abbott-Piramal acquisition | Year: May 2010 | Deal size: USD 3.7 billion Objective: To increase its presence in the Indian branded generics space. Result: Expensive deal with Abbott paying 8.8 times of Piramal sales. While the acquisition strengthened Abbott’s market position and product portfolio in India, sales growth are highly unlikely to reach Abbott’s USD 2.5 billion revenue target for 2020. (Image Reuters) | 1/12 Aurobindo Pharma-Actavis Europe business acquisition. deal was profitable from the second year. revenue from the acquired business increased by over 12 percent. Torrent Pharma-Elder portfolio acquisition. Torrent, the 12th largest (in terms of IMS sales) pharma players in india increased its market share from 2.0% to 2.7% in the country. | 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://economictimes.indiatimes.com/markets/stocks/news/howard-marks-bull-bear-case-outlook-on-end-of-virus-crisis/articleshow/74926401.cms | He said there is no doubt about the ability of the governments and on the US Fed’s massive cash injection to make things better for the US economy in the short run.
Billionaire investor Howard Marks has sounded more worried in his latest memo amid looming concerns related to the coronavirus pandemic, a sharp fall in crude oil prices and the risks they pose to the broader economy.He said there is no doubt about the ability of the governments and on the US Fed ’s massive cash injection to make things better for the US economy in the short run.He said in a positive case scenario, better news will arrive in the not-too-distant future. To support the statement, he highlighted that the earliest countries to contract the virus have shown good progress.“Every forecast I’ve seen assumes that the virus will be brought under control within three months or so. The curve is flattened and then turned downward. The virus is contained and then eliminated,” he said.The co-founder of Oaktree Capital Management believes the negative impact of the endemic on the global economy will be sharp, but brief.“The term ‘V-shaped’ dominates most forecasts, both between Q2 and the second half and between 2020 and 2021,” he said.He said telling people to stay home, thus causing businesses to close, is the economic equivalent of putting a patient into coma to facilitate curing a serious disease.“The government will provide life support to the economy during the coma and bring the patient out of coma after she is cured,” he said, adding that banks are much less vulnerable than they were during the Global Financial Crisis, with only one-third of leverage.“Thus. concerns over the health of the overall financial system are greatly reduced,” he said.However, in the negative case scenario, Marks is more worried than a dreamer. “Maybe that’s what made me a better credit analyst than an equity analyst,” he said.He says he is worried about the outlook for the disease, especially in the US. The total number of coronavirus cases in the US has surpassed both China’s and Italy’s, and is still rising rapidly.“I’m concerned that the number of cases and deaths will continue to rise as long as we fail to emulate the actions of successful countries,” Marks said.The market veteran also sounded concerned about the economy. “Many millions will be thrown out of work. People will be unable to patronise businesses. Not only will workers miss paychecks and businesses miss revenue, but businesses’ physical output will tail off, meaning essential food may run short,” Marks wrote.The longer the people remain at home, the more difficult it will be to bring the economy back to life.He said there are chances of defaults by the leveraged entities based on price markdowns, rating downgrades and perhaps on portfolio assets. “We may see increased ‘haircuts’ on part of lenders, margin calls, portfolio liquidation and forced selling,” he said.The crash in crude prices is another concern for the oil-producing companies and nations. This may lead to further job losses.Marks said the range of negative outcomes seems much wider today. “Social isolation, disease and death, economic contraction, enormous reliance on government action and uncertainty about the long-term effects are all with us, and the main question that surrounds us is, how far will they go,” he asked. | he said in a positive case scenario, better news will arrive in not-too-distant future. he said the earliest countries to contract the virus have shown good progress. he said the negative impact of the endemic on the global economy will be sharp, but brief. he said banks are much less vulnerable than they were during the global financial crisis, with only one-third of leverage. | Positive |
https://www.financialexpress.com/world-news/unemployment-rate-falls-to-13-3-us-adds-2-5-million-jobs/1982640/ | The U.S. unemployment rate fell unexpectedly in May to 13.3 per cent still on par with what the nation witnessed during the Great Depression as states loosened their coronavirus lockdowns and businesses began recalling workers.
The government said Friday that the economy added 2.5 million jobs last month, driving unemployment down from 14.7 per cent in April.
The May job gain, which confounded economists’ expectations of another round of severe losses, suggests that thousands of stores, restaurants, gyms and other companies reopened and rehired more quickly than many analysts had forecast.
Still, it raises a key question for businesses and unemployed workers: How fast will the rebound proceed? For hiring to continue at a solid pace, businesses will probably need to see signs that consumers are starting to resume their pre-outbreak habits of shopping and dining out.
Other evidence has also shown that the job-market meltdown triggered by the coronavirus has bottomed out. The number of people applying for unemployment benefits has declined for nine straight weeks. And the total number of Americans receiving such aid has essentially leveled off.
The overall job cuts have widened economic disparities: While the unemployment rate for white Americans was 12.4per cent May, it was 17.6per cent for Hispanics and 16.8per cent for African-Americans.
Even with the surprising gain in May, it may take months for all those who lost work in April and March to find jobs. Some economists forecast the rate could remain in double-digits through the November elections and into next year.
For weeks, economists had warned that unemployment in May could hit 20per cent or more.
The street protests over George Floyd’s killing that led to vandalism and looting in dozens of cities did not affect Friday’s figures, which were compiled in the middle of May. But business closings related to the unrest could show up in the June report.
A few businesses are reporting signs of progress even in hard-hit industries. American Airlines, for example, said this week that it will fly 55per cent of its U.S. routes in July, up from just 20per cent in May.
And the Cheesecake Factory said one-quarter of its nearly 300 restaurants have reopened, though with limited capacity. Sales are at nearly 75per cent of the levels reached a year ago, the company said.
Erica Groshen, a labor economist at Cornell University and a former commissioner of the Labor Department’s Bureau of Labor Statistics, said hiring could ramp up relatively quickly in the coming months and reduce unemployment to low double-digits by year’s end.
”Then my inclination is that it will be a long, slow slog,” she said. Until most Americans are confident they can shop, travel, eat out and fully return to their other spending habits without fear of contracting the virus, the economy is likely to remain sluggish.
Gwyneth Duesbery, 22, returned this week to her job as a restaurant hostess in Grand Rapids, Michigan, as Bowdie’s Chop House prepares to reopen with tables 6 feet apart and seating capacity reduced to about one-quarter.
”I am concerned that it will expose me to potential diseases, and expose others, no matter the precautions that we take,” she said. ”It’s kind of uncharted waters.” | the unemployment rate fell unexpectedly in may to 13.3%. the economy added 2.5 million jobs last month, driving unemployment down from 14.7% in April. the increase suggests that thousands of stores, restaurants, gyms and other companies reopened and rehired more quickly than many analysts had forecast. the number of people applying for unemployment benefits has declined for nine straight weeks. | Positive |
https://economictimes.indiatimes.com/news/economy/indicators/young-population-ready-to-adapt-more-confident-of-future-standard-chartered-survey/articleshow/77417674.cms | A large section of the global young population led by India is confident of their future despite lower salaries and the possibility of a further hit on jobs and income due to the Covid-19 pandemic as they are prepared to adopt to a new world to work harder and use digital technologies, a survey by UK based bank Standard Chartered said.Standard Chartered conducted a ten-minute online survey of 12,000 people aged 18 or above across 12 markets | survey by bank reveals large section of young population confident of their future. 12,000 people aged 18 or above were surveyed in 12 markets. a large portion of the global young population is confident of their future. a large portion of the global young population led by india is confident of their future. the young are prepared to work harder and use digital technologies. | Positive |
https://www.financialexpress.com/infrastructure/railways/indian-railways-bullet-train-project-boost-for-atmanirbhar-bharat-indian-companies-to-lay-high-speed-tracks/2009806/ | Bullet Train in India: Now, Indian companies will do a number of high-value, technical works for the upcoming Ahmedabad-Mumbai bullet train project, according to an IE report. These high-value, technical works were earlier slated to be done by Japanese firms. The move is expected to give a major boost to Indian engineering capability. According to the report, to explore if the highly technical work of laying the rail track of the bullet train corridor can be done by an indigenous engineering company, India is in discussions with Japan. On the 508-km stretch of the Ahmedabad-Mumbai corridor, 27 steel bridges will be made by Indian companies, which was earlier thought to be the sole domain expertise of Japanese firms.
The National High Speed Rail Corporation Limited (NHSRCL), keeping in view that no Indian company has worked on laying Shinkansen track that is capable of carrying trains at a speed of 320 km per hour, has reached out to Indian industry to assess the requirement as well as capability of domestic players to get this job done. Last Wednesday, a webinar was hosted to sensitize Indian firms and consultants about the job. Sources quoted in the report said that training for upskilling Indian players is being planned as well. According to officials, for domestic engineers, Indian companies laying the track would be a major capability upgrade and also this will go a long way towards “Atmanirbhar Bharat” in the engineering space.
According to the report, the Indian side has convinced the Japanese side that engineers of India are more than capable of making complex steel bridges. According to the sources quoted, the work for 65,000-ton steel fabrication for the 27 bridges in the high-speed rail corridor will be certified by Tiruchirapalli’s Welding Research Institute. Also, the cost of the work is likely to be “slightly cheaper” with Indian firms than with Japanese companies. However, rolling stock, signalling and control systems would be from Japan.
According to sources quoted in the report, a tender for the undersea tunnel which is a part of the 21-km underground stretch in the state of Maharashtra — India has held its ground that the cost escalation after accounting for inflation would not be acceptable beyond a level. India had discussed that the work cost should be based on estimates of the year 2015 and the calculated inflation, and not more than that. The 21-km long underground stretch from Bandra Kurla Complex to Kalyan has 7 km section under the Thane creek, with 1.8 km section under the sea bed, while the remaining stretch under mangrove marshland on either side of the creek in Mumbai. The tender for the tunnel project is expected to be opened next month, the report added. | IE report says 27 steel bridges will be made by Indian companies. cost of the work is likely to be "slightly cheaper" with Indian firms than with Japanese companies. laying the track would be a major capability upgrade for domestic engineers. the project is part of the 508-km stretch of the Ahmedabad-Mumbai corridor. the project is expected to be completed by the end of the year. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/when-you-kept-doubting-the-stocks-rally-32-bse500-stocks-doubled-wealth-in-3-months/articleshow/76545630.cms |
You may have all kinds of doubts over the ongoing stocks rally in India and elsewhere, yet the fact is this market is creating wealth!The rapid rise in domestic equities from their March lows has not only helped investors recover much of their losses, but also created big wealth for some, with several stocks doubling prices in just three months.Data showed 95 per cent of BSE500 stocks from across sectors have delivered a positive returns since March 24, when the benchmark BSE Sensex had hit its 52-week low.With a 202 per cent rally, TV18 Broadcast emerged chart topper among the 32 BSE500 stocks that doubled money from their March lows. The stock rose to Rs 37.50 on June 19 from Rs 12.40 on March 24.Others on the list included Hathway Cable & Datacom (up 200 per cent), Reliance Power (up 199 per cent) and Adani Green Energy (up 198 per cent).Better-than-expected financial results, company-specific reasons and robust liquidity in the market lifted these stocks. Media firm TV18 Broadcast reported a five-fold rise in consolidated net profit for March quarter at Rs 141.83 crore. Adani Green Energy posted a consolidated net profit of Rs 55.64 crore for Q4FY20, helped by lower expenses, against a consolidated net loss of Rs 94.08 crore reported for the corresponding quarter a year ago.Ajit Mishra of Religare Broking said Adani Green Energy has seen a smart runup in recent days after the company denied any material impact from Covid-19 on its profitability.The BSE Sensex is up 36 per cent at 34,909 during this period, while the BSE500 index has gained 37 per cent. Their Wall Street peers Dow Jones Industrial Average, S&P500 and Nasdaq have advanced up to 50 per cent from their March lows.Among other big gainers, Reliance Infrastructure, Network18 Media , Vodafone Idea, Jain Irrigation, Jubilant Life Sciences, Intellect Design Arena, EID Parry, Dhanuka Agritech and Aurobindo Pharma have gained anywhere between 140 per cent and 180 per cent.Brokerage Emkay Global Financial Services is positive on Aurobindo Pharma with a price target of Rs 835. “March quarter was solid for the company on strong execution across markets, sharp gross margin expansion and debt reduction. Ebitda was 12 per cent higher, while margins were 130 basis points above estimate at 21.4 per cent.”Jubilant Life Sciences also turned around in March quarter, reporting a consolidated net profit of Rs 260.49 crore on robust sales in the pharmaceuticals segment. It had posted a net loss of Rs 100.65 crore for the year-ago period.Anand Rathi Shares and Stock Brokers is positive on Jubilant Life with a price target of Rs 867.“Jubilant Life Sciences’ business is positioned well in the current environment, which bodes well for companies having manufacturing footprint in both the US and India. Moreover, the demerger of LSI (Life Science Ingredients) business will allow value unlocking for the pharma business. We continue to remain positive on the company from a medium- to long-term perspective,” the brokerage said.Suzlon Energy, in which individual investors including HNIs hold 49.87 per cent stake, gained 137 per cent to Rs 4.29 from Rs 1.81 on March 24.Reliance Capital, Muthoot Finance, Indiabulls Housing Finance, Dishman Carbogen Amcis, Inox Wind, KRBL, Infibeam Avenues, Glenmark Pharmaceutical, ITI and HEG were the other players that more than doubled investors’ money in three months.Antique Stock Broking said Muthoot Finance’ growth is going strong, growing 4 per cent YoY in terms of tonnage and 21 per cent in terms of value. Despite the ongoing pandemic situation, this indicates strong pan-India level demand. “Operating leverage was clearly visible with a sharp improvement in profitability,” the brokerage said.Glenmark hogged the limelight after it launched antiviral drug Favipiravir, under the brand name FabiFlu, on June 21for treatment of patients with mild to moderate Covid-19 infection at a price of Rs 103 per tablet.If the drug proves to be efficacious over the next few months, the company will enjoy first-mover advantage.Trident, Jindal Stainless (Hisar), PC Jeweller, Rashtriya Chemicals, Jai Corp, ICICI Securities and GMM Pfaudler and Reliance Industries have also jumped over 100 per cent from March lows. | a rapid rise in domestic equities from their March lows has created big wealth. a number of stocks have doubled prices in just three months. television18 Broadcast emerged chart topper among the 32 stocks that doubled money. the benchmark BSE Sensex is up 36 per cent at 34,909 during this period. the stock rose to Rs 37.50 on June 19 from Rs 12.40 on March 24. | Positive |
https://www.moneycontrol.com/news/business/heres-why-facebook-silver-lake-vista-general-atlantic-and-kkr-invested-in-jio-5300671.html | live bse live
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Reliance Industries Ltd (RIL) on Friday said KKR has become the fifth company to invest in Jio Platforms. KKR bought a 2.32 percent stake for Rs 11,367 crore.
This is the fifth global company to invest in Jio in the past five weeks. So far, Jio Platforms has attracted a total investment of Rs 78,562 crore. Other investors in Jio Platforms are: Facebook, Silver Lake, Vista and General Atlantic.
The stake-buy in Jio is biggest for KKR in Asia so far.
Henry Kravis, Co-Founder and Co-CEO of KKR, said, “Few companies have the potential to transform a country’s digital ecosystem in the way that Jio Platforms is doing in India, and potentially worldwide. Jio Platforms is a true homegrown next-generation technology leader in India that is unmatched in its ability to deliver technology solutions and services to a country that is experiencing a digital revolution. We are investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team, and we view this landmark investment as a strong indicator of KKR’s commitment to supporting leading technology companies in India and Asia Pacific.”
Reliance Jio- Facebook deal
The first major infusion among the five equity deals was from Facebook, which bought a 9.9 percent stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), The deal valued Jio at Rs 4.62 lakh crore ($65.95 billion).
Commenting on the deal, the Facebook said, "This investment underscores our commitment to India and our excitement for the dramatic transformation that Jio has spurred in the country. In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio.” The deal aims to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India.
Reliance Jio- Silver Lake deal
American private equity giant Silver Lake Partners bought 1 percent stake in Jio Platforms for Rs 5,655.75 crore ($750 million) in a deal that took Jio's enterprise value to Rs 5.15 lakh crore — a 12.5 premium to the value indicated by Facebook.
Commenting on the transaction with Silver Lake, Mukesh Ambani, Chairman and Managing Director - Reliance Industries Ltd, said, “I am delighted to welcome Silver Lake as a valued partner in continuing to grow and transform the Indian digital ecosystem for the benefit of all Indians. Silver Lake has an outstanding record of being a valuable partner for leading technology companies globally. Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation.”
Reliance Jio- Vista Equity deal
Vista Equity Partners, a US-based private equity firm that runs the world’s largest exclusively tech-focused fund, picked up a 2.32 percent stake in Jio Platforms for Rs 11,367 crore, making it the third high-profile investment in the Reliance Industries Ltd (RIL) unit in as many weeks and underlining its status as a next-generation software and platform company.
After signing the deal with Reliance Jio, Robert F Smith, founder, chairman and CEO of Vista, said, “We believe in the potential of the Digital Society that Jio is building for India. Mukesh’s vision as a global pioneer, alongside Jio’s world-class leadership team, have built a platform to scale and advance the data revolution it started. We are thrilled to join Jio Platforms to deliver exponential growth in connectivity across India, providing modern consumer, small business and enterprise software to fuel the future of one of the world’s fastest-growing digital economies.”
Reliance Jio- General Atlantic deal
Reliance Industries, on May 17, announced that growth equity firm General Atlantic Partners will invest Rs 6,598.38 crore in Jio Platforms. General Atlantic bought a 1.34 percent stake in Jio Platforms, giving Jio an enterprise value of Rs 5.16 lakh crore.
At the time of signing, Bill Ford, Chief Executive Officer of General Atlantic, said, “As long-term backers of global technology leaders and visionary entrepreneurs, we could not be more excited about investing in Jio. We share Mukesh’s conviction that digital connectivity has the potential to significantly accelerate the Indian economy and drive growth across the country. General Atlantic has a long track record working alongside founders to scale disruptive businesses, as Jio is doing at the forefront of the digital revolution in India.”
Read all KKR-Jio deal stories here
Disclaimer: Reliance Industries (RIL) is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd | KKR bought a 2.32 percent stake for Rs 11,367 crore. this is the fifth global company to invest in Jio in the past five weeks. other investors in Jio Platforms are: Facebook, Silver Lake, Vista and General Atlantic. the stake-buy in Jio is biggest for KKR in Asia so far. KKR is investing behind Jio Platforms’ impressive momentum, world-class innovation and strong leadership team. | Positive |
https://www.businesstoday.in/technology/oppo-watch-is-down-to-lowest-price-in-flipkart-sale-and-this-is-your-best-chance-to-grab-it/story/425348.html | Oppo Watch is selling at its lowest price in the Flipkart Big Saving Days sale. The Android-powered smartwatch Oppo normally sells for Rs 14,990 but it is down to Rs 12,990 in the sale. Better yet, if you have a credit card from State Bank of India, you get an additional 10 per cent off on the price. This would bring down the cost to Rs 11,691 for the Oppo Watch 41mm version, making it a steal deal for people who are looking to get a smartwatch. There are plenty of smartwatches in the markets, starting from the Rs 3,000 - Rs 4,000 price category but Oppo Watch is one of the cheapest Wear OS smartwatches.
Flipkart has kicked off the Big Saving Days from Friday, December 18 where it is selling a range of smartphones for much less price but there are other tech products available with discounts on the website. Which means the smartwatches are up for grabs for less, as well. Now, there are several smartwatches that you get on Flipkart but if you want a Wear OS smartwatch, the options you have in the market are Fossil and Oppo. Fossil sells only the Sports editions of its smartwatches that are compact and are suitable for sportspeople. Its other smartwatches cost north of Rs 22,000.
Oppo Watch a great Android watch
Oppo Watch (Review) brings a comprehensive Android experience in two sizes. The 41mm model was launched for Rs 14,990 and the 46mm for Rs 19,990 but Flipkart is discounting it by Rs 2,000 in the sale. After the discount, the Oppo Watch is available to buy at Rs 12,990 and Rs 17,990, respectively. But the lowest price you will pay for the Oppo Watch is Rs 11,691, which is effective only after you use the SBI credit card to make the purchase. There are a couple of other offers on Flipkart but the card discount is the best for you.
Now that the price and discount on the Oppo Watch are out of our way, I will talk about if buying a Wear OS smartwatch makes sense for you. Obviously, an Android-powered will be best supported on an Android device. This means no matter what brand your Android phone is, such as Samsung, Oppo, Vivo, Asus, Xiaomi, and Realme, Oppo Watch will offer you all the functionalities. These include replying to WhatsApp messages right from the smartwatch, checking, replying, and deleting emails, controlling music playback on several apps, and even accessing Google Maps. For fitness, you have the heart rate sensor, sleep tracker, and workout tool that counts steps and more on the Oppo Watch.
Oppo Watch also works with iPhone but it will be only good for checking notifications and tracking health. You cannot reply to any of the notifications. Which is why Android smartwatches are not recommended to be used with an iPhone. If you have the budget, get yourself an Apple Watch. The latest Apple Watch SE sells for Rs 29,900 in India.
Oppo Watch has an AMOLED display, a fast processor, and a trendy design that I like. I can even go out on a limb and say that Oppo Watch is the best Android smartwatch that you can get for the price. And since it is coming from Oppo, expect some nifty things such as fast charging on the smartwatch that takes a little over half an hour to fully charge the smartwatch. What else? The Oppo Watch has two speakers so that alarms and ringtones can be played. Overall, it is the best deal you can get for yourself this Christmas. | the android-powered smartwatch Oppo normally sells for Rs 14,990. but it is down to Rs 12,990 in the Flipkart Big Saving Days sale. if you have a credit card from State Bank of india, you get an additional 10 per cent off on the price. this would bring down the cost to Rs 11,691 for the Oppo Watch 41mm version. | Positive |
https://www.financialexpress.com/market/budget-2019-equity-market-fails-to-hold-rally-ends-with-small-gains/1472521/ | The sensex soared over 500 points on Friday but had pared much of the gains by the end of the session closing 212 points in the green or 0.6%. Stocks in just a handful of sectors – auto, consumer discretionary and real estate – rallied. Most measures that the finance minister announced as part of the Interim Budget for 2019-20 related to these sectors.
Vetri Subramaniam, group president & head-equity, UTI Asset Management Company (AMC), said the Budget puts an additional Rs1 lakh crore in the hands of households over the next financial year.
“It does this by way of an income entitlement to farm households amounting to Rs75,000 crore and a further Rs25,000 crore by way of income tax breaks targeted at middle class. This amounts to about 0.5% of GDP and is a fiscal stimulus. This builds on an assumption of strong buoyancy in goods and services tax (GST) collections,” Subramaniam said.
While the announcement of a rebate to tax payers boosted the sentiment as it would put more money in the hands of consumers there was also a concern that the large fiscal deficit could keep the RBI from trimming interest rates. Navneet Munot, executive director, SBI Mutual Fund, said: “The thrust towards income enhancement is positive for the consumption-oriented sectors.” He also added that, from equity market perspective, Budget would be seen as a positive event given the continued focus on income enhancing measures. Market’s focus will shift back to global cues, political developments and earnings trajectory.
Deven Choksey, managing director at KR Choksey Investment Managers, said: “Markets are volatile on the lack of clarity and confidence and there was profit booking after two days gains in equity market. Currently, this is a trading market and not an investment market.”
On Friday, foreign portfolio investors bought stocks worth Rs1,315.9 crore, while domestic investors sold shares worth Rs5.07, provisional data on exchanges showed.
Among the 19 sectoral indices compiled by BSE, the BSE Auto index rallied the most with a gain of 2.65%. This was followed by BSE Consumer Discretionary index with 1.8% rise and BSE Realty by 1.3%. Among stocks in Auto sector, Hero MotoCorp rallied the most by 7.48% to Rs2,807.35 on Friday. Other stocks like Maruti Suzuki, Eicher Motors, TVS Motors and Ashok Leyland gained between 3-5%.
The FM in his Budget speech proposed to extend the period of exemption from levy of tax on notional rent, on unsold inventories, from one year to two years, from the end of the year in which the project is completed. This move will help real estate players. | auto, consumer discretionary and real estate stocks rallied. most measures that the finance minister announced as part of the Interim Budget for 2019-20 related to these sectors. Among 19 sectoral indices compiled by BSE, the BSE Auto index rallied the most with a gain of 2.65%. Among auto sector, Hero MotoCorp rallied the most by 7.7%. | Positive |
https://www.businesstoday.in/bt-insight/analysis/quant-funds-outperform-benchmark-should-you-invest/story/408838.html | Amid plenty of mutual funds in the country, there is one category that has failed to catch investor fancy. Quant funds, which are rule-based mutual fund schemes driven by customised statistical models, are 0.01 per cent of overall MF universe with only three funds in the category. While the first quant fund - Nippon India Quant Fund - was launched in 2008, it's only in 2019 that the second fund -- DSP Quant Fund -- joined the fray, followed by Tata Quant Fund in early 2020.
Quant funds fall between the passive and active funds. It has low expense ratio and no human bias like passive funds. Unlike active funds, where fund managers play a role in stock picking, buying and selling happen via algorithms in quant funds. Such funds are quite popular in global markets, but have failed to generate interest in India.
"There is no story or a personality of a fund manager to make a sale pitch. When you explain investors that your money will be deployed based on a mathematical system, it does not enthuse confidence in them. Secondly, there is no incentive for bankers and distributors to push these products because they don't get commission which they do in regular funds. So, lack of personality, story and cheap cost work against these products," explains Ashutosh Bhargava, Head Equity Research and Fund Manager, Nippon India Mutual Fund.
How quant funds work
Each quant model looks for a pattern in the past to extrapolate it in the future, which could either be purely mathematical like in technical analysis or factor-based strategies like value or growth.
"The job of the quant fund manager is to assess whether the pattern observed in past data is persistent i.e it will repeat in the future and thus can be profited from or just a data artifact which has to be ignored," says Gaurav Rastogi, CEO, Kuvera.
Also Read: Moody's rates TCS, Infosys, RIL above sovereign, cites strong financials, global earnings
Nippon India Quant Fund, which underperformed the market in its initial years, revamped its model recently to boost returns. "Earlier it was a Nifty-based fund, so we were supposed to buy only 20 stocks. Now we buy at least 30 stocks out of BSE-200. The new avatar is broad-based, but still focused on largecaps. It has mainly quality-cum momentum strategies, different from what we used to have in past," says Bhargava of Nippon India MF. On a year-to-date basis, the fund is down 6 per cent compared to 12 per cent fall in benchmark S&P BSE 500 TRI.
DSP's Quant model puts an emphasis on elimination first. It has returned 2.63 per cent in last one year compared to 9.91 per cent fall in S&P BSE 500 TRI. "Our fund avoids highly levered companies, companies with poor quality of reported earnings and the like. This has helped the model outperform the benchmark since the portfolio companies in general have strong balance sheets and thereby better ability to weather a slowdown," says Aparna Karnik, Senior Vice President and Head -Risk and Quantitative Analysis, DSP Investment Managers.
Another aspect that helped DSP was its multi-factor approach that blends quality, growth and value investing styles into the investment process. "We have tried to create an all-weather portfolio, that aims to be relatively immune to the economic cycle."
Tata Quant Fund, launched in January 2020, is an AI-powered and ML-enabled open-ended mutual fund scheme.
What may go wrong in quant funds
Quant fund strategies are based on historical data, so it may not respond well to black swan events like coronavirus-led crash or sentiment-driven rallies. "Since these are driven by quantitative models, there could be some blind spots which may be otherwise picked up by fund managers through a more qualitative lens," says Kaustubh Belapurkar, Director - Manager Research, Morningstar India.
Quant models that rely on artificial intelligence (AI) and machine learning (ML) face another hurdle. "If the machine has not witnessed an event in the past or has neither been fed with information about it, it will not be able to account for the same in its future predictions," points out Tarun Birani Founder and CEO TBNG Capital Advisors.
Besides, since quant fund managers back-test their models on the past data, there is every possibility that it may not perform the same in the future. "Do not invest just because the back test looks good. Investors have burnt their hands chasing such fictitious returns quite often. So, investors with a certain level of sophistication in evaluating and understanding statistical significance should invest in quant funds," cautions Rastogi of Kuvera.
Also Read: Coronavirus impact: Office leasing slumps upto 36% across Delhi, Mumbai, other top cities
Should you invest?
Quant funds should be analyzed based on the investment model that they follow. However, since these are at a nascent stage in India, it is difficult to find a differentiator. "Data is the fuel here as the entire model is constructed based on historic data and every model is likely to face a scenario or an unanticipated event where it might not function as expected," says Birani.
Birani says whichever fund an investor chooses, he must build exposure to it in a staggered manner. "At the moment it is difficult to pinpoint a specific fund as we barely have any history or time period to analyze its performance against. However, since the human emotion quotient in investing is out of equation, this becomes an interesting strategy for long term investors."
Belapurkar of Morningstar India says if the underlying model of a quant fund fits well in an investor's portfolio, typically up to 10 per cent of the portfolio in quant funds could be suitable.
Why choose quants funds over passive or active funds
Undoubtedly, low-cost passive funds are best for conservative investors who do not seek market beating returns. However, if you wish to diversify beyond index funds, but do not want exposure in high-cost active funds, you may choose quant funds. Bhargava says with every sector facing disruption quite often now, it has become difficult for even experienced fund managers to have a medium to long-term view on the market, thus alpha is shrinking. "That's where you need objective rule-based system which simplifies the job, and makes the process repeatable. Investors are right in asking for alpha when they are paying 2.5 per cent fees. That is becoming a challenge."
Quant funds may not have progressed in India yet, at least low cost index funds and ETFs have piqued investor interest. "Globally also, ETFs progressed first and smart beta quant funds came later. so, if you believe ETFs are future, quant and smart beta products will also follow suit," says Bhargava.
Also Read: Coronavirus crisis: Ban on international flights extended till July 31 | quant funds are rule-based mutual fund schemes driven by statistical models. they are 0.01 per cent of overall MF universe with only three funds in the category. it has low expense ratio and no human bias like passive funds. a new fund, called 'the sagar', is aimed at boosting returns. it is a new fund that is aimed at boosting returns. | Positive |
https://www.moneycontrol.com/news/business/economy/india-asks-oil-and-gas-producers-to-use-more-local-steel-in-infrastructure-5412761.html | live bse live
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India has asked domestic oil and gas companies to raise the share of domestically manufactured steel they use in future infrastructure projects worth billions of dollars to cut its dependence on imports, boost the economy and create jobs.
Prime Minister Narendra Modi's government is pushing for local manufacturing to resuscitate the economy, which is likely to contract by about 5 percent this fiscal year.
India, the world's third-biggest oil importer and consumer, plans to invest about $160 billion by 2025-26 in expanding refining capacity, building gas infrastructure and ramping up exploration and production.
Federal Minister for Steel and Oil Dharmendra Pradhan on Tuesday urged officials from the two sectors to prepare a roadmap to boost the oil and gas industry's share of domestic steel consumption.
State-run Engineers India Ltd anticipates India's oil and gas sector will consume 50 million tonnes of steel in next 15 years.
The country is the world's second-biggest producer of the metal but relies on costly overseas purchases for some high-end products.
"Domestic players should rise to the occasion so that cost does not escalate in our efforts to promote localization of the supply chain," Pradhan said in a webinar.
Indian Oil Corp, the country's top crude oil refiner, said on Tuesday it aims to procure 161.5 billion rupees ($2.1 billion) worth of local steel in the next three years to expand refining capacity and build gas infrastructure.
The company plans to procure 400,000 tonnes of steel, plus 5,500 tonnes of plates for tank maintenance, Chairman Sanjiv Singh said. However, he said it has to import some varieties of steel that local firms rarely make at competitive rates.
Steel Authority of India Chairman Anil Kumar Chaudhary said while the cost of producing specialised grades was higher, economies of scale meant that a rise in orders would bring it down.
"We can develop any kind of steel," he said. | india asks oil and gas companies to increase share of domestically manufactured steel. prime minister's government is pushing for local manufacturing to resuscitate economy. india plans to invest about $160 billion by 2025-26 in expanding refining capacity. state-run engineer's india says oil and gas sector will consume 50 million tonnes of steel. | Positive |
https://www.moneycontrol.com/news/business/caplin-point-laboratories-gets-colombias-invima-nod-for-puducherry-sterile-injectable-division-3965001.html | Representative image
Caplin Point Laboratories on May 13 said it has received approval from Colombia's INVIMA for its sterile injectable division at Puducherry.
"The site inspection of unit-1 was completed on May 10 and found compliant as per INVIMA's norms of Good Manufacturing Practices (GMP) and Good Laboratory Practices (GLP)," Caplin Point Laboratories said in a BSE filing.
The facility is capable of manufacturing liquid injectables in vials, ampoules, lyophilized vials and pre-filled syringes, amongst other dosage forms, it added.
"Colombia is part of our expansion plans into the larger markets of Latin America. It also happens to be our first approval from Unit-1 site at Puducherry. We'll be focusing on niche opportunities in injectables in these newer geographies," Caplin Point Laboratories Chairman C C Paarthipan said.
Caplin Point Laboratories' unit-1 site currently caters to emerging markets of Latin America and Africa with a variety of dosage forms such as tablets, capsules, softgel capsules, suppositories, liquid orals and topicals.
Shares of Caplin Point Laboratories were trading 0.80 percent lower at Rs 334.40 apiece on BSE. | Caplin Point Laboratories has received approval from Colombia's INVIMA. the facility is capable of manufacturing liquid injectables in vials, ampoules, lyophilized vials. the approval is part of the company's expansion into the larger markets of Latin America. the unit-1 site currently caters to emerging markets of Latin America and africa. | Positive |
https://economictimes.indiatimes.com/markets/stocks/recos/buy-apar-industries-target-price-rs-423-emkay-global/articleshow/77457639.cms | Emkay Global has given buy rating to Apar Industries with a target price of Rs 423. The share price moved up by 0.12 per cent from its previous close of Rs 303.75. The stock’s last traded price is Rs 304.10.Apar Industries Ltd., incorporated in the year 1989, is a Small Cap company (having a market cap of Rs 1167.00 Crore) operating in Diversified sector.For the quarter ended 30-06-2020, the company reported a Consolidated sales of Rs 1284.06 Crore, down -28.70 % from last quarter Sales of Rs 1800.88 Crore and down -34.75 % from last year same quarter Sales of Rs 1967.86 Crore Company has reported net profit after tax of Rs -23.07 Crore in latest quarter.The brokerage said that it had recently lowered FY21/FY22 revenue and EPS estimates steeply, factoring in lower order executions and postponement of new tenders. Discoms continue to face liquidity as its outstanding dues toward the gencos rose to Rs1.31tn as on June’20. However, the loan disbursement under the government’s ‘Atmanirbhar’ scheme has increased to Rs180bn and total of Rs670bn has been sanctioned by the PFC/REC, which will be disbursed by Q3FY21. Also, the discoms’ collection efficiency has improved since June’20 and the opening up of the economy in the phased manner will revive the demand for oil and cable products. It believes that the domestic business activity would normalize by Q4FY21 and FY22 would see revival in revenues and earnings for the company, with the execution of better-margin products. Accordingly, it has maintained earnings estimate for FY21/22 and reiterates Buy with a TP of Rs 423 (at 10x FY22E EPS). Key risks include a prolonged slowdown in business activity, rising receivables and doubtful debt.Promoters held 59.7 per cent stake in the company as of June 30, 2020, while FIIs held 5.9 per cent, DIIs 23.4 per cent and public and others 11.1 per cent. | Emkay Global has given buy rating to Apar Industries with a target price of Rs 423. the share price moved up by 0.12 per cent from its previous close of Rs 303.75. the stock's last traded price is Rs 304.10.. apar is a small cap company (having a market cap of Rs 1167.00 Crore) operating in Diversified sector. | Positive |
https://www.financialexpress.com/entertainment/bollywood-earns-rs-4000-crore-in-2019-innovative-screen-formats-good-films-perk-up-revenue/1832175/ | Cinema theatre chains are adding more seats each year and they’re not regretting it. Viewers seem more than happy to catch a film in these tough times, savouring what they feel is affordable entertainment. Not surprising then that Bollywood’s revenues are understood to have nudged closer to Rs 4,000 crore in 2019 with just 170 releases. That’s way more than the pickings of some Rs 3,300 crore in 2018 from 180 releases.
The total number of seats with PVR and Inox jumped 33% in the year to March 2019. But thanks to a string of high quality releases – Kabir Singh, Mission Mangal, Super 30, Chhichhore, War, Good News and Mardaani 2 – theatres were more full than they have been before. At Inox for instance, occupancies increased to 28% from 26% in FY18 while at PVR they went up a good five percentage points at 36.20%.
The Inox Leisure management told FE footfalls had gone up to 3.63 crore in the six months to September, 2019, about 70 lakh more than in H1FY19. “With an audience of 1.9 crore in the three months to September 2019, we created history with the highest ever footfalls in a single quarter,” Alok Tandon, CEO at Inox, says. Together, PVR and Inox control the bulk of theatre capacity in the country and had just over three lakh seats at the end of March 2019.
Experts point out seats are getting filled even though ticket prices did not dip too much post the reduction in the GST. Starting January 2019, the GST on film tickets costing over Rs 100 was reduced to 18% from 28%; the rate on tickets priced below Rs 100 was reduced to 12% from 18%. Atul Mohan, editor, Complete Cinema, believes that while the cut in GST rates may have helped, it is the good content that is driving audiences to theatres.
Indeed, Bollyood’s stellar box-office run came in a year when viewers enjoyed plenty of choice; Netflix’s popular show Sacred Games returned with a fresh new season, Amazon Prime had Made in Heaven, Family Man and Modern Love , Hotstar streamed Game Of Thrones season 8 while Apple launched its streaming service at a throwaway price of Rs 99 per month.
An analysis of ticket prices of Inox showed that although average ticket prices (ATP) fell to Rs 189 in Q4 FY19 (the first quarter that reflected the benefit of lower GST rates on tickets) from Rs 206 in Q3 FY19, prices went up to Rs 198 in Q1FY20 and remained over Rs 195 in Q2FY20. At PVR, the ATP went up to Rs 209 in Q1FY20 from Rs 201 in Q4FY19.
Ajay Shah, partner at EY, says while differentiated content has been the main draw, exhibitors have also innovated in terms of screen formats such as recliners, Imax, Kids screens and also curated food menus providing more for audiences. They will keep improvising with different formats, megaplexes, loyalty rewards and also go deeper into tier-two and three cities, generating better revenues, Shah says.
Footfalls will continue to increase, Dinkar Ayilavarapu, partner, Bain & Company, says pointing out that spending on leisure as a percentage of incomes in India is less than 2% compared with about 10% in the developed world. Ayilavarapu adds the rising disposable income are driving the movie business and would also drive OTT, travel, and other leisure businesses. Given the improving popularity of Bollywood content, Girish Menon, partner at KPMG, estimates the film industry could grow at a healthy CAGR of 7.3% from FY19-24. And while lower ticket prices might attract audience resulting in more blockbusters, Jehil Thakkar, Partner, Deloitte India, has no doubt that exhibitors are on a sound wicket. “They have priced tickets flexibly and that should pay off,” Thakkar predicts.
Consumer expenditure in the leisure sector in China has seen close to 10% y-o-y growth since 2011, more than twice the growth rates seen in other major markets, according to a 2017 report by OC&C Strategy Consultants. A McKinsey China Luxury Report released last year said the country delivered more than half the global growth in luxury spending between 2012–2018, and is expected to deliver 65% of the world’s additional spending heading into 2025. | total number of seats with PVR and Inox jumped 33% in year to March 2019. but thanks to a string of high quality releases theatres were more full than before. a reduction in the GST on film tickets costing over Rs 100 was reduced to 18% from 28%. experts point out seats are getting filled even though ticket prices did not dip too much post the reduction in GST rates. | Positive |
https://www.financialexpress.com/economy/good-going-forex-reserves-up-by-3-6-billion-to-405-6-billion/1524513/ | India’s foreign exchange reserves increased by $3.6 billion to $405.64 billion as on March 15, data from the Reserve Bank of India (RBI) showed. In the previous week, the reserves had increased by $258.8 million to $401.776 billion.
Foreign currency assets (FCA), which form a key component of reserves, rose by $3.54 billion to $377.773 billion.
FCAs are maintained in major currencies like US dollar, euro, pound sterling and Japanese yen. Movement in the FCA occurs mainly on account of purchase or sale of foreign exchange by the RBI, income arising out of the deployment of foreign exchange reserves, external aid receipts of the government and revaluation of assets.
ALSO READ: India among fastest growing large economies in the world, says IMF; here’s what’s needed to sustain growth
The increase in foreign reserves could partly be attributed to rising investments by foreign investors in the Indian capital markets. The net foreign portfolio investment (FPI) in equity markets in March (till March 15) at $2.9 billion is highest in since January 2018. Indian debt markets have seen a positive inflow of $1.2 billion till March 15.
As per RBI data, foreign direct investments (FDI) for FY18 amounted to $37.366 billion. | foreign currency assets (FCA) rose by $3.54 billion to $377.773 billion. move occurs mainly on account of purchase or sale of foreign exchange by RBI. net foreign portfolio investment (FPI) in equity markets at $2.9 billion is highest in since January 2018. net foreign investment (FPI) in equity markets at $2.9 billion is highest in since January 2018. | Positive |
https://www.moneycontrol.com/news/business/ipo/embassy-office-parks-reit-raises-rs-1743-cr-radhakishan-damani-among-anchor-investors-3655491.html | Representative image
By March 15, Embassy Office Parks REIT garnered Rs 1,743 crore from anchor investors that mostly include foreign investors along with a few Indian ones.
Ace investor and Avenue Supermarts' owner Radhakishan Damani and his brother are among Indian investors, who invested Rs 160 crore against 53.36 lakh shares in Blackstone-backed company, through their five trusts.
Another Indian investor is Kotak Mahindra Life Insurance Company that bought 6.96 lakh shares worth Rs 20.88 crore in the company.
All others are foreign investors including big names like Fidelity Funds, Morgan Stanley, TT Emerging Markets Fund, DB International, National Westminster Bank, Citigroup, Wells Fargo, Japan Trustee Services Bank, etc.
"Under anchor investors (AIs) portion in the public issue of Embassy Office Parks REIT, 5,81,05,600 units have been subscribed at Rs 300 per unit," Embassy REIT said in its filing to the BSE.
Embassy Office Parks, which is a joint venture between the Bengaluru-based property developer and private equity firm Blackstone, has placed 33 million square feet of office and hospitality assets under its proposed REIT, which comprises seven business parks and four city-centric buildings spread across Mumbai, Bengaluru, Pune and Noida.
The initial public offering (IPO) of Embassy Office Parks REIT, the first ever by a Real Estate Investment Trust in India (REIT), will open on March 18 in the price band Rs 299-300, the company said in a statement.
Embassy REIT is issuing units aggregating up to Rs 4,750 crore and will constitute at least 10 percent of the issued and paid-up units on a post-issue basis.
The issue, made through the book-building process, will close on March 20, the statement said. The units are proposed to be listed on the National Stock Exchange and BSE. The minimum bid size is 800 units and in multiples of 400 units thereafter.
Proceeds from the same will be used for: i) Partial or full repayment of bank/ financial institution debt, ii) Payment for acquisition of the Embassy One Assets currently held by Embassy One Developers Pvt, and iii) For general purposes.
The book running lead managers to the issue are: Axis Capital, Credit Suisse Securities (India), Deutsche Equities India, Goldman Sachs (India) Securities, HSBC Securities and Capital Markets (India), IIFL Holdings, JM Financial and Nomura Financial Advisory & Securities (India). | Embassy Office Parks REIT garnered Rs 1,743 crore from anchor investors. the initial public offering (IPO) will open on march 18. the company is a joint venture between the Bengaluru-based developer and private equity firm Blackstone. the units are proposed to be listed on the national stock exchange and BSE. a total of 5,81,05,600 units have been subscribed at Rs 300 per unit. | Positive |
https://www.financialexpress.com/money/ready-to-move-in-vs-under-construction-home-which-is-a-better-bet-for-you/1858632/ | The housing market is one of the most stable and important elements of any modern economy. One of the chief drivers of GDP, it is capable of transforming economic development of the country. As stated by “India Brand Equity Foundation,” a trust established by the Department of Commerce, Indian Ministry of Commerce and Industry, the real estate sector in India is expected to reach a market size of $1 trillion by 2030 from $120 billion in 2017 and contribute 13 per cent of the country’s GDP by 2025.
Increasing incomes, urbanisation and economic growth are all currently driving realty demand in India. Concurrently, the growth of the corporate environment, retail, hospitality and commercial real estate is providing the push for much-needed infrastructure for India’s burgeoning needs. No wonder then that it is expected that this sector will incur more and more Non-Resident Indian (NRI) investments in both the short term and the long term.
Housing is a basic need, and the growing demand for housing has kept the focus of investors, stakeholders and developers on residential properties. However, while planning on investment in real estate, the most common dilemma is whether you should buy an under-construction property or a ready-to-move-in one. A ready-to-move-in home is one that is ready for immediate occupancy. This means the buyer saves himself from the risk of delays. He also does not have to bear the dual burden of paying the rent and EMIs at the same time.
Investing in ready-to-move-in property is a win-win decision, regardless of whether you actually move in or not. If you are an NRI investor planning to buy a home with the intention of earning rental income, then purchasing a completed project helps you start renting the property immediately.
One tangible benefit of a ready-to-move-in home is that investors don’t have to pay GST. Goods and Services Tax (GST) of 5% is applicable on an under-construction property for new projects started after April 1, 2019, charged over and above the property value. So if you are buying an under-construction property valuing Rs 60 lakh, you will have to pay Rs 3 lakh as GST. No GST is applicable on ready-to-move-in property, which reduces the overall financial outflow. However, there is a caveat. A recent clarification confirmed that only ready projects with Occupancy Certificate in place enjoy this benefit. Therefore, make sure you check for this important document when planning to buy a ready-to-move-in property.
In the post-RERA regime, developers are expected to strictly adhere to the timelines. Developers, making a provision for project delay, have listed completion dates of 4-5 years for projects. Waiting for such a long period can eventually turn out to be a costly decision for the buyer. The risk-averse investor with finances in place wants to steer clear off project delays and escalating costs. This makes ready-to-move-in properties the ideal choice for the NRI investor, looking for zero-risk investment and immediate access to a home that he can rent.
An unmistakeable advantage to investing in ready-to-move-in homes is that what you see is what you get. You can always check out the neighbourhood, available infrastructure and amenities around the area, connectivity to other parts of the city, and even seek reliable feedback from the people around. For NRIs thus buying a ready-to-move-in home is also hassle-free. NRIs typically prefer a week long travel to India for family visits / business trips. With ready-to-move-in homes, the entire process from selecting to buying a home can easily fit into the trip schedule.
It is no secret that ready-to-move-in homes or those nearing completion are costlier than under-construction projects. On the flipside, this difference is very easily offset. Many developers are offering incentives such as waiving of stamp duty and registration, payment schemes, freebies, such as modular kitchens, essential fittings and reserved parking space, etc, on ready-to-move-in properties. Besides this, the fact is, if you choose wisely and opt for a well-connected location in one of the growth corridors, you can expect a great rental income, which will justify the premium you pay for a ready-to-occupy home.
(By Prashant Bindal, Chief Sales Officer, Lodha Developers) | the real estate sector in india is expected to reach a market size of $1 trillion by 2030 from $120 billion in 2017. a ready-to-move-in home is one that is ready for immediate occupancy. investors don't have to pay the dual burden of paying the rent and EMIs at the same time. a ready-to-move-in home is one that is ready for immediate occupancy. | Positive |
https://www.businesstoday.in/markets/stocks/sensex-nifty-rally-mid-cap-stocks-small-cap-stocks-reliance-industries-hdfc-hdfc-bank/story/391209.html | The current market rally has left market watchers and economists astounded. While the economy is on a downslide, Sensex and Nifty have been hitting all-time highs almost on a daily basis since mid-September. Sensex hit a fresh all-time high of 41,163 today rising 143 points compared to the previous close of 41,020. Nifty too clocked a record high of 12,157, gaining 57 points against the previous close of 12,100. The market rally started after FM Nirmala Sitharaman announced reduction in corporate tax rate to 22% per cent from 30% on September 20 this year.
With the announcement bringing tax relief for India Inc, Sensex closed 1,921 points or 5.32% higher at 38,014 and Nifty ended 5.32% or 569 points higher at 11,274 that day. Intra-day, Sensex surged 2,285 points to 38,378 against previous close of 36,093 points. Nifty too zoomed 677 points to 11,381 against previous close of 10,704. Since then, the benchmark indices have been testing fresh highs. While Sensex has gained 5,037 points, Nifty has added 1,447 points taking into account today's close.
Of 30 Sensex components, 12 stocks alone have contributed to over 88% of the gains during the period. Shares of HDFC, HDFC Bank, Reliance Industries, Kotak Mahindra Bank, IndusInd bank, ICICI Bank, Maruti Suzuki, SBI, Bharti Airtel , HUL, Bajaj Finance and Bajaj Auto have fuelled the rally in benchmark indices. Of 5,037 points gain on Sensex since September 20, these 12 stocks have added 4,437 points, translating into 88.10% contribution to the mega market rally on the key index.
Infographic: Don't let Sensex fool you
So what explains such huge rally in Sensex?
With the economy reeling under a slowdown in last one year, investors have been looking to park their money in safe havens. Sensex and Nifty stocks which represent companies with healthy balance sheets and strong business models have become ideal destinations for their funds.
Another factor for the shining performance of a majority of large-caps stocks can be understood from the reduction in the number of players in sectors such as aviation, media, non-banking finance and telecom. As a result, the surviving players have received huge rewards from the market for their robust business models and steady growth rates.
Amid the ongoing NBFC crisis, Bajaj Finance has appeared unscathed. The leading NBFC firm logged a 63.11 per cent year-on-year (YoY) rise in net profit at Rs 1,506.29 crore for the quarter ended September 2019 compared to net profit of Rs 923.47 crore in the corresponding quarter last year. Total revenue from operations rose 47.95 per cent YoY to Rs 6,322.55 crore during the quarter under review. Subsequently, its stock has risen 70.13% during the last one year.
Also read: RIL becomes first Indian firm to hit Rs 10 lakh cr market cap, share price hits all-time high
Similarly, with other players facing tough time in the telecom sector, Bharti Airtel stock has gained 51.26% during the last one year. Its one-year gain surpasses 49.83% rise seen by the stock in last three years.
However, when we dig deeper, we find that the rally is not broad-based.
Mid cap and small cap indices are yet to join the party. From 12,703 on September 20, the BSE small cap index has gained 794 points to 13,497. In comparison, Sensex has risen over 5,000 points indicating huge investor interest in large cap stocks. The gains in the BSE mid cap index are also small when compared with rally in Sensex. The index managed to rise 1,775 points to 15,060 from the September 20 level of 13,285.
Midcap and small cap stocks have been reeling under big losses during last two years. In fact, BSE Midcap index has lost 12.40% during the period. The small cap index is down 26% in last two years.
Of late, mid cap and small cap stocks have seen a mild recovery from their two-year losses. While BSE small cap index has gained 6.70% in last three months, BSE mid cap index has risen 10.60% during the period.
With Union Budget 2020 just two months away, the market might eye fresh highs from the current levels. The true growth potential of the stock market can be realised only when mid caps and small caps complete their recovery cycle and contribute to the rally in the broader market.
By Aseem Thapliyal | Sensex and Nifty have been hitting all-time highs almost daily since mid-September. rally started after government announced tax cut on corporates. 12 stocks alone have contributed to over 88% of the gains. Sensex and Nifty are both gaining ground in the market. a majority of investors are looking to invest in safe havens. | Positive |
https://www.financialexpress.com/opinion/automate-now-pay-later-an-outcome-based-pricing-model-for-automation-makes-great-sense/2085984/ | By Swapnil Pitale
The post-pandemic era is beginning to take shape and is bringing about a massive disruption in the way businesses operate. While everyone expects the world economy to slow down, there is also an acceleration in the shift towards automation. Enterprises today are being compelled to take the edge off of humans and instead employ Intelligent Automation to get work done more efficiently, effectively and swiftly while their employees work remotely.
The pandemic has totally changed the way businesses imagine their continuity plans, forcing them to rethink and redesign their operating models. It has made them see automation in a different light—a stark contrast, from the resistance or scepticism toward automation in the pre-pandemic era to being very open to adoption. However, given the sky-high stakes in the current scenario, organisations would like their automation partner(s) to have more skin in the game as opposed to merely playing a detached consultative or spec-based implementation role. This has given rise to emphasis on “Automate Now, Pay Later”, best represented by the outcome-based model.
While the outcome-based model has been around across industries for a long time, due to a better understanding of business functions and digital technologies at the customer-side, there is a greater demand for more innovation and cost-effective service, resulting in higher consideration now.
What’s an outcome-based model?
An outcome-based is a model where the pricing is based on the “outcome” in terms of the measurable cost or revenue impact delivered to the customer. Unlike other models, the outcome-based model doesn’t lay out detailed technical specifications or tasks performed; rather, it stresses on the ultimate business outcome. The outcome here could have different connotations as per the stakeholder involved, e.g. the outcome for a CEO might be the percent revenue generated, but for a CMO, it could be the change in the customer’s buying behaviour, growth in market-share or client/market penetration.
Why is it so lucrative now?
The outcome-based model means more skin in the game on the part of the automation partner, which naturally puts a lot of pressure on them to do their best, thereby ensuring more value for the customer. Another aspect of the outcome-based model that lures organisations is that they pay for the final result and not for the digital technologies leveraged in the automation process. Unlike traditional models, the business won’t continue to bear the brunt if the desired impact isn’t achieved. This also means minimised risk for the customer. Moreover, since the success of the partner substantially depends on the overall success of the engagement, there is more sincere effort, more transparency and better trust amongst both the parties. Last but not the least, there are no surprises or hidden expenses, unlike those encountered in the traditional models. Overall, it is a win-win situation!
While the outcome-based model may seem very bankable, there are some factors to ponder before considering this approach to make sure it is the right one. One needs to be equipped with better understanding/expertise of digital technologies and have dedicated time and resources at hand. Clarity of what’s qualified as an “outcome” is of utmost importance. If there’s slightest of misunderstanding about the definition of the outcome, this misalignment can lead to a lot of chaos in the automation timeline.
Another vital factor to consider is that the outcome should be quantifiable. Clear communication is yet another mandate for this type of model. Not only is it essential to have a clarity of the desired outcome, but it is equally important to communicate this clearly to the automation partner so that both parties are on the same page. This will help the automation partner validate expected value/benefits being realised within specified timelines. God is in the detail in this case, so it makes perfect sense to plan all the milestones in greater detail to set up a fair foundation and, at the same time, ensure accountability.
Robust governance is the key to an outcome-based relationship as it ensures adherence to the agreed milestones and overall structure.
We all know now that the outcome-based model is not optimal for situations where people are most likely to shift blame, avoid governance or avoid accountability. It becomes a success only if the relationship between the customer and the automation partner is collaborative, trustworthy and genuine. This is definitely not a model that runs like clockwork from day one—rather, it will evolve over time with concerted efforts from both parties. As times get more competitive in the post-pandemic era, it’ll be interesting to see how the outcome-based model evolves into a joint endeavour between the customer and the automation partner to achieve stupendous results in their automation expedition.
The author is Global head, Intelligent Automation, Consulting Practice, LTI
Views are personal | post-pandemic era is beginning to take shape and is bringing about massive disruption in the way businesses operate. there is also an acceleration in the shift towards automation. organisations would like their automation partner(s) to have more skin in the game as opposed to merely playing a detached consultative or spec-based implementation role. outcome-based model is a model where the pricing is based on the ‘outcome’ in terms of the measurable cost or revenue impact delivered to the customer. | Positive |
https://www.financialexpress.com/industry/sme/14-lakh-jobs-in-offing-as-gig-economy-to-lead-blue-collar-job-creation-in-12-months-highest-in-logistics-says-report/1515957/ | Amid the government’s claim around the advantage India has of demographic dividend on one hand and the rising debate of India’s alleged unemployment crisis on the other, at least India’s blue collar workforce can look forward to a better year ahead. The country is expected to generate 21 lakh new blue collar jobs in the coming 12 months even as more than 8 lakh jobs are likely to come up in the logistics sector, said a report by BetterPlace — technology platform that manages the lifecycle of blue-collar employees of various businesses.
Moreover, out of the 21 lakh job opportunities forecasted for coming 12 months, 14 lakh are expected to come up in the gig economy.
“The report indicates that there is migration beginning to happen from traditional blue-collar jobs such as IFM, security etc., to gig-based jobs as a result of increased flexibility, higher salaries with attractive incentive structures and higher take home due to minimal deductions,” BetterPlace said in a statement.
In addition to logistics, around 6 lakh jobs are hoped to be generated in on-demand or similar businesses that are driver-linked. Further, around 3.5 lakh vacancies are expected to be created in for security guards.
“The data for this report, which has been collected from over 11 lakh profiles over the past year points to migration trends – where are they coming from? Where are they going for seeking jobs and how salaries have been steadily increasing,” said Pravin Agarwala, Co-founder CEO, BetterPlace.
Maharashtra is likely to take the lead in job generation with more than 4 lakh jobs followed by Karnataka with over 3 lakh jobs in the blue collar vertical.
Here are some other interesting findings from the report:
Southern states — Karnataka, Tamil Nadu, Andhra, Kerala, Telangana — will generate 40 per cent of the blue collar jobs in India.
Among tier I cities, Bengaluru is the largest job creator with close to 2.35 lakh jobs closely followed by Delhi at 2.25 lakh jobs approximately. Kolkata scores the lowest with close to 24,000 blue collar jobs but growing well year-on-year.
Hyderabad and Chennai fast emerging as jobs centres with 54,052 and 93,222 blue collar jobs respectively. | out of 21 lakh job opportunities forecast for coming 12 months, 14 lakh are expected to come up in the gig economy. around 6 lakh jobs are hoped to be generated in on-demand or similar businesses that are driver-linked. around 3.5 lakh vacancies are expected to be created in for security guards. tier I cities Bengaluru is the largest job creator with close to 2.35 lakh jobs closely followed by Delhi at 2.25 lakh jobs approximately. | Positive |
https://www.businesstoday.in/sectors/energy/coronavirus-lockdown-ntpc-to-offer-rs-1363-crore-discount-on-fixed-charges-to-discoms/story/406583.html | Power producer NTPC will give Rs 1,363 crore discount to distribution companies (discom) on fixed or capacity charges during the lockdown period this fiscal, the state-run company said on Wednesday.
The NTPC board has also approved deferring the collection of Rs 2,064 crore fixed charges from discoms till the end of lockdown, imposed to contain the coronavirus pandemic. The charges would be collected in three equal installments without any interest, the PSU said.
The fixed charges are paid by discoms under power purchase agreement for the cost of setting up of a power plant. The revenue collection of power distribution companies was hit due to reduced industrial activity after the lockdown was imposed to contain the spread of COVID-19 in the country.
The government last month announced a liquidity infusion of Rs 90,000 crore through REC and Power Finance Corp into crisis-hit discoms. The liquidity shot will be securitised against the receivables of discoms from consumers. NTPC said that its board of directors in a meeting on June 9, 2020, "approved deferment of capacity charges of Rs 2,064 crore to DISCOMs, to be payable without interest after the end of the lockdown period in three equal monthly instalments".
The board also approved a rebate of Rs 1,363 crore on the capacity charges billed during the lockdown period to discoms on account of COVID-19, in financial year 2020-21, it stated. The PSU on May 17 had announced that it would consider deferment of capacity charges and rebate to distribution companies and a rebate of 20-25 per cent on fixed charges to discoms following the direction of the power ministry.
Earlier last month talking about the recent relief given to discoms reeling under financial stress due to slump in demand amid the lockdown, Power Minister R K Singh had said that central public sector undertaking (CPSU) power generators had been asked to defer fixed charges from the discoms.
"After the economy opens up, those fixed charges would be paid by discoms in equal installments without interest. This would be huge relief. "We have asked our CPSUs (gencos) to give 20 to 25 per cent discount to discoms on cost of power. We want discoms to pass it on to consumers. This will be reflected in the first bill of the consumers after economy reopens (after lockdown is over)," he had said.
Also read: Coronavirus impact: Cash withdrawal from ATMs falls nearly 50% in April | NTPC to give Rs 1,363 crore discount to discoms on fixed or capacity charges. the lockdown was imposed to contain the spread of coronavirus. the fixed charges are paid by discoms under power purchase agreement. the government last month announced a liquidity infusion of Rs 90,000 crore into crisis-hit discoms. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/gsk-sells-3-35-billion-stake-in-hindustan-unilever/articleshow/75598105.cms | GSK offloads over 5% stake in HUL via bulk deals Mumbai: GlaxoSmithKline(GSK) and Horlicks will sell up to $3.4 billion (Rs 26,090 crore) worth of Hindustan Unilever shares through what could be India’s biggest secondary market block trades on Thursday, with the British drugmaker looking to monetise about 5.7 per cent of HUL stock it had got after last year’s merger of GSK Consumer Healthcare and the country’s most valuable FMCG company.
HONG KONG/SINGAPORE: GlaxoSmithKline said on Thursday it sold its stake in Unilever's Indian business for $3.35 billion, which Refinitiv says is the largest block trade ever to have been carried out in India.The funds will help GSK in its goal of reinvigorating its drug development pipeline, having made costly bets on experimental cancer treatments and future cell and gene therapies amid sluggish revenue growth.The 5.7% stake in Hindustan Unilever was accepted by GSK as payment for the sale of its malted drink brand and other nutrition brands to Unilever, agreed in late 2018.The 133.77 million shares were offloaded on average for 1,905 rupees, according to a statement from GlaxoSmithKline.Potential investors were earlier told the shares would be sold in a range of 1,850 to 1,950 rupees, which was a 3%-8%discount to Wednesday's closing price of 2,010.20 rupees.In the statement, GSK said it would now receive net proceeds from the Horlicks divestment of 2.9 billion pounds ($3.59 billion), up from its original expectation of 2.4 billion pounds.It said the recent Hindustan Unilever share price gains led to the better than expected outcome.The deal, at $3.35 billion, eclipses the previous block trade record in India when Daiichi Sankyo sold its $3.18 billion stake in Sun Pharmaceuticals in April 2015, according to Refinitiv. On a global basis, the Glaxo block trade will be the 10th ever biggest, according to the data provider. The largest ever block trade remains Naspers selling $9.8 billion worth of Tencent stock in Hong Kong in March 2018.GSK's decision could also inject some momentum into India's equity capital markets which have struggled in line with other major financial markets as a result of the coronavirus pandemic.There has been $6 billion worth of equity capital market deals in India so far in 2020, down from $8.52 billion during the same time list year, according to Refinitiv.The data showed the rate of activity in 2020 is the slowest since 2017.In comparison, Hong Kong's equity capital markets have seen $12.8 billion worth of activity this year.GSK struck a deal in 2018 to fold its Indian business - whose main product is Horlicks - into Unilever's Indian unit Hindustan Unilever in exchange for shares in the combined group.According to GSK's first-quarter report, it completed the Horlicks deal on April 1, receiving the 5.7% equity stake in Hindustan Unilever plus about 400 million pounds in cash.Earlier this year, GSK launched a two-year programme to split into two entities, separating the core prescription drugs and vaccines business from an enlarged over-the-counter products business that was merged with a Pfizer unit.It is considering more divestments to fund the costs of the separation.Having sold travel vaccines to Bavarian Nordic for up to 955 million euros ($1.03 billion)in October last year, the British group is looking into shedding more assets, starting with a review of its prescription dermatology business with about 200-300 million pounds in annual sales. | british drugmaker sells 5.7% stake in hul for $3.35 billion. 133.77 million shares were offloaded on average for 1,905 rupees. 133.77 million shares were offloaded on average for 1,850 to 1,950 rupees. gSK said it would now receive net proceeds from the Horlicks divestment of 2.9 billion pounds ($3.59 billion) | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/firstsource-solutions-hits-52-week-high-rises-for-3rd-straight-session/articleshow/79934665.cms | MUMBAI: Firstsource Solutions rose for the third straight session and logged a 52-week high on Thursday, extending gains as the company announced this week the acquisition of PatientMatters, a healthcare Revenue Cycle Management (RCM) solutions provider.At 9:49 am, Firstsource Solutions was up 6.20 per cent at Rs 84.80. It had hit a 52-week high of Rs 85 in early trade. Meanwhile, Sensex advanced 0.66 per cent to 46,749.06 points.The stock has gained nearly 14 per cent over the last three sessions, and has more than doubled for the year to date.Firstsource Solutions, a RP-Sanjiv Goenka Group company , is a global provider of Business Process Management (BPM) services.PatientMatters unifies disparate registration, bill estimation, and financial services with intelligent workflows and eligibility services, improving revenue realization for Hospitals.The acquisition complements Firstsource’s Provider Business on two dimensions: strengthening presence in large markets like Texas and New York and adding new capabilities of pre-authorization and patient bill estimation at the front-end of the RCM cycle, the company had said in a press release. | Sensex advanced 0.66 per cent to 46,749.06 points. stock has gained nearly 14 per cent over the last three sessions. firstsource announced this week the acquisition of patientmatters. the acquisition complements Firstsource’s Provider Business on two dimensions: strengthening presence in large markets like Texas and new york. firstsource is a global provider of business process management (BPM) services. | Positive |
https://www.moneycontrol.com/news/business/earnings/analysts-bullish-on-sbi-life-after-fy20-earnings-expect-20-36-upside-5230311.html | live bse live
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SBI Life Insurance Company share price gained 4.4 percent intraday on May 6 on growth numbers in FY20 despite disruption due to COVID-19 in the last 10 days of March.
The stock shot up 38.5 percent since March 23's closing, while today, it was quoting at Rs 745, up Rs 29.35 or 4.10 percent on the BSE at 13:34 hours IST.
Brokerages are bullish on the stock and expect 20-36 percent potential upside on likely steady growth in operating parameters in coming years, though there could be slowdown in overall business in first half of FY21 due to COVID-19.
The insurance company closed FY20 with an embedded value (EV) of Rs 26,300 crore aided by 30 percent YoY growth in embedded value operating profit (EVOP) mainly coming from a) healthy new business value (NBV) growth (17 percent), b) jump in persistency variance (Rs 240 crore versus Rs 5 crore last year) from steady product level persistency and modification in the treatment of group renewable business and c) other operating variances (Rs 190 crore versus Rs 6 crore) owing to release of risk margins baked in last year.
Margins improved 100bps YoY to 18.7 percent in FY20 aided by a) rising share of non PAR (7 percent of APE versus 0.4 percent last year) and protection (9 percent versus 7 percent) and b) 135-265bps YoY improvement in 25th-61st bucket regular persistency.
JM Financial, which has a buy rating with price target at Rs 860, believes SBI Life is better placed to weather the COVID-19 disruption given significant brand equity, an expansive multi-channel, pan India distribution network, cost leadership and access to parent's huge client base.
The brokerage expects an 18 percent embedded value CAGR over FY20-22E with 17-18 percent operating return on embedded value (RoEVs) with key risks being growth, persistency and unfavourable yield movement.
Prabhudas Lilladher also retained its buy rating with a revised price target of Rs 880 (from Rs 1,127 earlier) as it expects overall operating metrics like persistency, margins, costs etc to remain steady, though growth is expected to slow down a bit going ahead.
Annual premium equivalent (APE) for FY20 increased 11 percent YoY – inline with the industry, with a market share of 11 percent making it the largest private life insurer.
However, given the COVID-19 disruption, SBI Life expects growth to slow down to single digits. This was reflected in the (1.3 percent) hit to new business value (NBV) margins from operating assumption change to reflect negative operating leverage in FY21, JM Financial said.
Distribution wise, others (digital, Mconnect, YONO) recorded a 60 percent YoY growth in new business premium in FY20 with channel share at 20 percent, up 5 percentage points YoY.
Solvency ratio as of March 2020 stood at 194 percent, down 35 percent QoQ impacted by weak equity markets. In line with IRDA directive, the insurer cancelled dividend for FY20.
ICICI Direct also feels SBI Life seems to be well placed to stem the tide, though lockdown and economic slowdown is expected to make FY21 a challenging fiscal.
"Change in product mix, excellent operating efficiency, competitive position in individual protection business remain key drivers. Steady persistency, strong banca partnership, focus on improving digital footprint is seen supporting growth as well as earnings," said the brokerage.
ICICI Direct expects SBI Life's business growth at around 11 percent CAGR and VNB margins at 17-17.5 percent in FY21-22.
"Preferring to stay with businesses having lower balance sheet (unlike banks) and healthy fundamentals, we remain structurally positive on the stock," said the brokerage which maintained its buy rating on the stock with a target price of Rs 850 per share (earlier Rs 800).
Sharp movement in capital/debt market or significant claims remains a risk, it feels.
The private life insurer reported a 15.9 percent year-on-year rise in its March quarter (Q4) profit at Rs 530.67 crore, while its net investment income stood at a negative of Rs 6,677.19 crore in Q4 as against investment income of Rs 4,150.73 crore in the year-ago period.
SBI Life's net premium income stood at Rs 11,862.98 crore in Q4FY20, showing a 4.7 percent YoY increase. Company has made an additional reserve of Rs 60 crore for novel coronavirus (COVID-19) pandemic over and above the policy level liabilities.
The life insurer had set aside a provision of Rs 107.26 crore in Q4 for diminution in value of investments and provisions for standard, non-standard assets.
SBI Life's solvency ratio stood at 1.95 in Q4 compared to 2.13 in the year-ago period and as against regulatory requirement of 1.50.
In Q4FY20 protection APE was at Rs 320 crore (up 28.0/39.1 percent YoY/QoQ, 11.8 percent share). Retail/group protection grew 6.2/66.7 percent YoY.
Emkay view
We assume coverage on SBI Life with a buy rating (overweight in NBFC Emkay Alpha Portfolio) and a revised target of Rs 892 at 2.5x March’22E EV (earlier Rs 1,100).
We believe that SBI Life's margin will improve owing to a gradual rise in protection plans' share along with the elevated share of non-par products. However, management needs to re-price its existing protection plans amid a rise in prices for reinsurance. We expect VNB margins to improve to around 19.6 percent by FY22 against around 18.7 percent during FY20.
HDFC Securities view
SBI Life's Q4FY20 performance was marginally below expectations, as NBP/APE declined 11.8/12.6 percent YoY due to the lockdown, while VNBM sustained at 20.7 percent (+90bps YoY). Despite SBI Life's ambition to post APE growth in FY21, given the macros, we remain skeptical.
Growth in Mar/Apr-20 has been severely impacted. Business is expected to decline over Q1FY21, however SBILIFE still believes that a single digit APE growth is possible in FY21E.
Over FY21, we expect COVID-19 and changes in personal taxation to cause significant disruption to insurance sales. We however take a longer term view on the business and appreciate the strong distribution footprint of its parent SBI (24k+ branches), improving protection share (FY20: 8.9 percent, up 212bps YoY), lowest operating cost ratios (9.9 percent), and improving margins (VNBM: 20.7 percent). We expect SBI Life to deliver strong FY20-22 VNB CAGR of 23.3 percent and RoEVs of around 13.4/15.1 percent.
We rate SBI Life a buy with a TP of Rs 975. Lower growth, renewals, and protection share are key risks to our call.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | stock shot up 38.5 percent since March 23's closing, while today, it was quoting at Rs 745, up Rs 29.35 or 4.10 percent on the BSE at 13:34 hours IST. brokers are bullish on the stock and expect 20-36 percent potential upside on likely steady growth in operating parameters in coming years. there could be slowdown in overall business in first half of FY21 due to COVID-19. | Positive |
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The government is likely to ask the next Finance Commission to consider a higher weight for the human development index (HDI) and sustainable development goals (SDGs) while recommending the distribution of resources among states.
US electric carmaker Tesla is willing to invest up to $2 billion for setting up a local factory if the government approves a concessional duty of 15% on imported vehicles during its first two years of operations in India.
As more women take up senior leadership roles in India Inc, their visibility in boardroom battles is also rising. In a clear break from the past, women are playing key roles in several ongoing boardroom conflicts, or family disputes that may extend into the boardroom, reflecting the rise in the number of women in positions where they can have their say.
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Download The Economic Times News App to get Daily Market Updates & Live Business News. | a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. | Positive |
https://www.livemint.com/Money/FdDUOHcafSHEjSd3bDxv1K/Sebi-may-come-out-with-stricter-norms-for-liquid-mutual-fund.html | New Delhi : Markets regulator Sebi is likely to come out with stricter rules for liquid mutual funds following the liquidity squeeze triggered by the Infrastructure Leasing & Financial Services (IL&FS) default, senior officials said Monday.
Among the measures, the regulator is considering a short lock-in period for investments in liquid funds and allowing segregation of papers in default and illiquid ones from the ones that are liquid. This would create two funds -- one with bad papers and another holding good papers, they added.
Besides, Sebi is looking to make it mandatory for liquid funds to mark to market the value of all bonds that have maturity of 30 days or more. At present, fund houses need to consider the mark-to-market value of securities with a maturity of 60 days or more. These steps are expected to be discussed at the Sebi-appointed mutual fund (MF) advisory committee meeting on Monday. After that, the regulator may come out with a consultation paper before putting in place final regulations, the officials said.
“The short lock-in period for investments in liquid funds may impact institutional investors," Quantum Mutual Fund Managing Director and CEO Jimmy Patel said adding that liquid funds are very sought after by institutional investors as there are no restrictions on entry or exit.
Besides, institutional investors prefer to park their money in such funds due to higher liquidity of the schemes, he added.
“A large part of audience for liquid funds is institutional investors like corporates, banks, etc. So, a change in the lock-in period impacts such institutional investors the most. At the same time, the retail investors could stand to gain as a result of more stable NAVs (net asset value)," said Aditya Bajaj, head --savings and investments -- at BankBazaar.com.
“Large, unpredictable inflows and outflows from institutional investors impact liquid fund NAVs in a big way. If this can be arrested in some way, it could help stabilise the NAVs somewhat," he added.
According to Bajaj, the move to introduce a lock-in period for liquid MFs is probably proposed to somewhat de-risk the industry from sudden knee-jerk reactions taken by investors in times of stress events. However, if done in isolation, it may not yield the expected results. There are other categories of funds like floater funds, which also need to be kept in mind while framing the rules for liquid fund lock-in as institutional investors may seek other avenues for investing if their primary requirement of daily liquidity is not met through mutual fund liquid funds, he added.
The mutual fund industry, which has 42 strong members, manages assets to the tune of over ₹ 22 lakh crore. Of this, liquid funds have an AUM (asset under management) of ₹ 4.5 lakh crore. IL&FS and its subsidiaries have defaulted on several debt repayments recently due to liquidity crisis. The company as of March 2018 owed over ₹ 91,000 crore to banks and other creditors. On October 1, the government superseded the board of IL&FS and appointed a new board, with banker Uday Kotak as its executive chairman.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)
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Topics | sebi is considering a short lock-in period for investments in liquid funds. it is also considering allowing segregation of papers in default and illiquid ones. the move is likely to de-risk the industry from sudden knee-jerk reactions. the regulator is also looking to make it mandatory for liquid funds to mark to market the value of all bonds. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/food/driven-by-growing-snacking-habit-of-indians-givaudan-expands-india-facility/articleshow/67895044.cms | Pune: Indians' love for snacking has helped Givaudan , the world’s leading flavour and fragrance company to not only clock a double digit growth, but also expand its manufacturing facility in India with an investment of Rs 400 crores."Bakery products and snacking movement are the two key growth drivers for the company's growth of flavours business in India," said Monila Kothari, Givaudan's APAC Commercial Head."Masala, butter and mango in beverages are the top most popular flavours in Indian market," said Kothari.Givaudan, which claimed to have 25% share of the world flavours and fragrance market and 27% share of the Indian market, sources about 50% of its ingredients required for Indian operations locally."We also source ingredients for natural flavours and fragrances like ginger, spices, jasmine etc from India," said Gilles Andrier, Chief Executive Officer, Givaudan.World wide, as consumers are shifting toward healthier snacking options, the share of natural ingredients in Givaudan's business has doubled over past decade to stand at two third of the total sales."Of the 9 companies that we acquired in past 4 years, 6 of them are in manufacturing of natural ingredients. However, natural is more expensive and also the question of sustainability is involved in it," said Andrier.Givaudan's 46% business comes from fragrance business, while the remaining 54% from the flavours business. India accounts for 4% of the global sales."The new 40,000-square-metre facility will enable Givaudan to meet growing demand from customers in the food and beverage and healthcare segments. The new facility will complement the company’s existing plant in Daman, strengthening its capabilities in liquids compounding, powder blending, emulsions, process flavours and spray drying for the India, Nepal and Bangladesh markets. Givaudan expects to employ about 200 people at the new site," said company spokesperson.Gilles Andrier said, “We are delighted to open this world-class flavours manufacturing facility in Pune as the latest example of Givaudan's long-term heritage and commitment to India and our strategic focus on the high-growth markets of Asia- Pacific. Our new plant will enable Givaudan to collaborate even more closely with our customers to deliver differentiated solutions and great taste experiences to the dynamic Indian market.” | the company's new 40,000-square-metre facility will enable it to meet growing demand from customers in the food and beverage and healthcare segments. the new facility will complement the company's existing plant in Daman, strengthening its capabilities in liquids compounding, powder blending, emulsions, process flavours and spray drying. the company expects to employ about 200 people at the new site. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/srinivasan-subramanian-on-moodys-downrating-state-of-the-economy-and-more/articleshow/71966376.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website Indian School of Business ISB Chief Technology Officer Visit Indian School of Business ISB Chief Digital Officer Visit IIM Lucknow IIML Chief Operations Officer Programme Visit
While the rating agencies are talking about us today, the markets are looking ahead and talking about tomorrow, says, Managing Director, Investment Banking,. Excerpts from an interview with ETNOW.We all know that the rating agencies do their job a little later and look into the rear view mirror while markets are looking ahead. That is the fundamental difference.I am not being flippant and I am not downplaying the gravity of the situation in India now. The situation is reasonably dire as the first quarter GDP numbers came out. The second quarter numbers are going to be broadly in the same range as the first quarter numbers. However, what the market is looking at positively is that the government is responding at multiple levels across the entire spectrum and not just in terms of corporate rate cuts or what they announced the day before in terms of getting the real estate sector out of the jam. It seems the government is saying that the economy is important and they will focus on it. It may take a couple of quarters for the effect of all these measures to come through. While the rating agencies are talking about us today, the markets are talking about us tomorrow.The bottom has been made. It will take a couple of quarters for us to completely get out of the woods. On the consumption part of it, we would expect the auto companies to pass on some of the tax rate cuts they will benefit from. They have been having excellent ROEs over the longer term. On a core ROE basis, many of the companies are in the 25-30% plus. If they come to 20% levels, they can pass on further price cuts and that is going to help revive demand. The bottom is done. I do not think we will go further below this, however, it might take a couple of quarters for everything to gather stream.The data point to look at is the sales across different industries. Flipkart alone does not give you the sense; neither does the Maruti sales alone give you the sense. In broader market you will see consumption staples moving up a little quicker and pricing falls come through.It is not an either- or scenario. The Indian markets, over a long period of time, has paid for growth. So growth at a reasonable price is what one should look at. It is easy to talk about HDFC Bank and Bajaj Finance and say that they are very expensive. Bajaj Finance. post the fundraise is around seven times current year and probably six times in FY21. However, on a PE basis, both Bajaj Finance as well as HDFC Bank are at less than 1x PEG and that is an important element to look at it. Have these companies been able to grow their earnings and keep the quality of assets intact? I would not look at earnings for companies in the financial sector, if the asset quality was not good. But these two companies have been able to show that irrespective of market cycles, they have been able to contain risk and the asset quality to the best of their assets. So, I would look at that.Asian Paints on the other hand, on a PEG basis, is significantly higher than 1. Therefore I ask myself, if I invest in Asian Paints, what is my ROE (and not the company’s ROE) on the price I pay? I am starting to ask myself those questions and for us, the good quality private banks, companies like Bajaj Finance are all still in the buy zone, However, if you take a company like Asian Paints, Nestle or HUL, in the long term, does it give me an IRR at the level from where I invest or in the next five years-seven years even if it take a longer turn?Unless the revenue jump is going to be significantly larger, I might end up getting a single digit IRR and do I want to own companies, however, good are, if they have single digit IRRs? But in Bajaj and HDFC, I see double digit IRRs — 15, 17, 18% stock price IRRs over the next three, four, five and even a longer horizon.The reason why the market is extremely positive about the insurance sector and I should caution you that right now — as Axis Capital we cover only SBI Life Insurance, we do not have coverage on the others — but on a generic basis, the runway for growth for the insurance sector is extremely strong over the next 10-15-20 years. The same is the case with asset management companies.On paper these look highly valued but is there is an extremely long runway for growth for these sectors and companies? Definitely, yes and that is the price which the market is willing to give for growth. The Indian market is a growth-oriented play, it is not necessarily a value play, For growth at a reasonable price, one should look at India.I would rather play auto through the auto ancillaries because there are some good quality auto ancillaries which are able to get an increasing wallet share. While auto growth is cyclical and will pick up after the disaster in the first six, eight months, I would rather play it through the ancillaries because I am still not sure over a five, seven-year period how the EV is going to impact the existing ones. The ancillaries that are not going to be impacted by the IC engines going off are the ones I would like to be working with. | Managing director, investment banking, explains the market is looking ahead. he says the market is looking at positively that the government is responding. he says the market is looking at the impact of corporate rate cuts and other measures. he says the market is looking at the impact of the government's rate cuts. he says the market is looking at the impact of the government's rate cuts. | Positive |
https://www.businesstoday.in/markets/market-perspective/sensex-reclaims-32k-nifty-closes-at-9490-as-banking-stocks-extend-gains/story/405245.html | Sensex and Nifty extended gains for the second consecutive session tracking positive global cues.
Domestic indices ended the monthly derivatives expiry of May on a positive note on Thursday on back of heavy buying in auto, banking and financial stocks.
While Sensex ended 595 points higher at 32,200, Nifty ended the day trade 175 points higher at 9,490. On Wednesday, Sensex closed 995 points higher at 31,605 and Nifty gained 285 points to 9,314.
Among sectors, barring PSU Banks, all the other sectoral indices witnessed healthy buying interest with capital goods, metals, auto and banks closing over 2%.
Overseas, markets rose on hopes of economic recovery as countries eased lockdown restrictions. Asian stocks extended gains tracking US markets that closed higher, driven by rising optimism around the re-opening of the world economy.
On Wall Street, sentiments were also boosted by "return to work" cash bonuses announced recently. However, tensions between the US and China and weakness in dollar kept gains in check. US President Trump has said he'd announce a response to China's policies towards Hong Kong later this week.
European markets also opened higher on Thursday, led by Germany, France and UK as investors digested the European Commission's plan for a 750 billion Euro recovery fund.
Expressing views over today's bullish trend, Vinod Nair, Head of Research at Geojit Financial Services said," A huge EU stimulus plan provided a boost to European shares while Asian shares were affected by the US-China diplomatic issues. Indian markets are banking on continued resumption of economic activities, inspite of still high number of new infections. Further, stimulus measures are also expected to boost demand in the economy and help the most impacted sectors to recover. Market is rising on the back of expectations while there has been little change in ground realities."
Meanwhile, companies set to announce their earnings are Ceat, Agro Tech Foods, Daawat, Lupin, Muthoot Finance, TVS Motors, Wendt among others.
As per technical indicators, Nifty turned from mix to bullish and the index lead towards 9,500 by closing bell. While 9,500 and 9,600 levels will be the future resistance, the index will find supports around 9,000 mark and then at 8,800 level, in case of any decline.
Ajit Mishra, VP - Research, Religare Broking," Nifty has managed to surpass its immediate and crucial hurdle at 9450. It may be heading toward 9650-9750 levels. We feel banking and financials will continue to play a critical role. Amid all, market participants are likely to keep a watch on GDP data scheduled tomorrow i.e. May 29 while on the global front any news on US-China tussle will be on investors' radar. Further, the on-going earning season would keep stock-specific volatility high."
On the currency front, the rupee ended on a weaker note at 75.75 per dollar as compared to the last closing of 75.72 per dollar.
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Stocks in news: Ujjivan Financial, United Spirits, Wendt, Ceat, Federal Bank, Lupin, TVS Motor and more | Sensex and Nifty extend gains for the second consecutive session. domestic indices end the monthly derivatives expiry of may on a positive note. Sensex closed 995 points higher at 31,605 and Nifty gained 285 points to 9,314. overseas, markets rose on hopes of economic recovery as countries eased lockdown restrictions. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/corporate-tax-cut-makes-india-attractive-destination-for-investment-rbi-governor-shaktikanta-das/articleshow/71274336.cms | NEW DELHI: Reserve Bank of India governor Shaktikanta Das said the government’s move to slash corporate tax rates has made India a very attractive destination for foreign investment.“It is a very bold measure, and it is a highly positive step,” Das told media persons after meeting finance minister Nirmala Sitharaman in New Delhi on Tuesday.He said India’s corporate tax rates have become very competitive compared to those of other emerging market economies in ASEAN and other parts of Asia.“So far as international investors are concerned, so far as FDI (foreign direct investment) is concerned, I think India stands definitely in a very competitive position and would be able to attract higher investments,” said Das.In the biggest reduction in 28 years, the government slashed corporate tax rates on Friday last week up to 10 percentage points as it looked to pull the economy out of a six-year low growth with a Rs 1.45 lakh crore tax break.Base corporate tax for existing companies has been reduced to 22% from 30%, and to 15% from 25% for new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023.Domestic companies now have more cash so they will now be able to undertake more capital expenditure, said the RBI governor. They can invest more and some of them can deleverage their liabilities which will add strength to their balance sheets, he said.Asked about the meeting with the finance minister, Das said it was a customary meeting ahead of the monetary policy meeting.“There is a long tradition that the governor meets the finance minister and discusses the overall macroeconomic position. So today’s meeting was basically that,” he said.The three-day monetary policy committee meeting will begin on October 1 amid expectations of a rate cut to be announced on October 4 in a bid to revive the sagging economy.Last week, Das had said the government had limited fiscal space to support growth, but low inflation could help the monetary authority ease policy rates further and help boost the economy.The RBI has already cut rates four times this year, by a cumulative 110 basis points, or 1.1 percentage point, to spur growth.“Today, when we see that the price stability is maintained and inflation is much below 4%, and is expected to be so in the next 12 months horizon, there is room for (more) rate cuts, especially when growth has slowed down,” Das had said.However, he refused to share the RBI’s revised growth projection, stating that the central bank will go public with the revised numbers at the monetary policy announcement on October 4. | RBI governor says move has made india a very attractive destination for foreign investment. he said the government's corporate tax rates have become very competitive. Das said it was a customary meeting ahead of the monetary policy committee meeting. the three-day monetary policy committee meeting will begin on October 1 amid expectations of a rate cut to be announced on October 4. | Positive |
https://www.financialexpress.com/market/rbis-rs-50000-crore-liquidity-shot-for-mutual-funds-may-not-be-effective-success-hinges-on-this-factor/1942915/ | The Reserve Bank of India’s liquidity support for mutual funds may struggle to be effective, as its success will hang on banks’ appetite to take up the risks involved, amid low capital headroom and a likely increase in fresh non-performing loans, according to Fitch.
The RBI’s Rs 50,000 crore Special Liquidity Facility for Mutual Funds (SLF-MF) will provide 90-day repo funding to banks, to extend liquidity to – or purchase commercial paper and debt securities from – local mutual funds.
The size of the SLF-MF appears broadly commensurate with the scale of the funds most at risk, Fitch notes. “The official support measures announced for mutual funds in India may struggle to be effective, as undercapitalised banks are unlikely to be tempted to extend liquidity to the sector without capital relief on the facilities,” Fitch Ratings said in a statement.
The facility’s structure places the onus on banks to absorb the associated credit and capital risk, which may hinder their willingness to participate, it added.
The move by the banking regulator followed the suspension of redemptions in six Franklin Templeton bond funds, with combined assets under management (AUM) of approximately USD 4.1 billion equivalent, on April 23, 2020, and outflows from other funds in March 2020.
Fitch further said that “the success of the SLF-MF will hang on banks’ appetite to take up the risks involved, against the system-wide backdrop of low capital headroom and a likely increase in fresh non-performing loans.”.
Indian open-end mutual funds saw aggregate outflows of almost 20 per cent in March. Within this, overnight funds, the most conservative variant in India, saw assets jump by almost 50 per cent, whereas most other fund types saw outflows.
“Fitch believes funds classified as “Credit Risk Funds” are most at risk if redemptions continue (their AUM declined by 10 per cent in March), particularly where funds have exposure to less liquid securities, such as unlisted securities, and/or have demonstrably higher risk appetite through exposure to defaulted entities such as IL&FS, Religare Finvest, and/or Dewan Housing,” it said.
Fitch said Mutual funds form a conduit between retail and institutional investors and financial markets. Most mutual funds assume liquidity risk, through offering investors the ability to redeem daily, while investing only a limited portion of their portfolios only in risk-free assets or cash.
This liquidity mismatch is most acute in mutual funds investing in illiquid assets such as property. An interruption of, or reduction in, funding provided by mutual funds to major entities or sectors, due to outflows or redemption suspensions, can have material credit implications for entities more reliant on wholesale funding. | RBI's Rs 50,000 crore special Liquidity Facility for Mutual Funds (SLF-MF) will provide 90-day repo funding to banks. size of SLF-MF appears broadly commensurate with scale of funds most at risk. it follows suspension of redemptions in six Franklin Templeton bond funds. india open-end mutual funds saw aggregate outflows of almost 20 per cent in march. | Positive |
https://www.moneycontrol.com/news/india/indian-industry-welcomes-uk-finance-minister-rishi-sunaks-coronavirus-action-plan-5045361.html | The Indian industry in the UK has welcomed the “unprecedented” rescue package unveiled by Britain's Indian-origin Finance Minister Rishi Sunak to help businesses in Britain combat the impact of the coronavirus pandemic.
Sunak on Tuesday announced a whopping 330-billion pounds worth of rescue measures in the House of Commons, including easier to access loan facilities, liquidity assistance for businesses through the ongoing crisis period and a 12-month business rates holiday for the retail and hospitality sector.
“This unprecedented support package is very welcome. The Chancellor has extended a third of a trillion pounds in grants, guarantees, corporate paper and unlimited loans, showing the considerable flexibility the state has to act in times of crisis,” said Jim Bligh, Chair of the Confederation of Indian Industry (CII) UK India Business Forum
“This shock will hit all sectors of the economy and businesses of all sizes, so the Treasury must continue to show flexibility as government, citizens and businesses rise together to defeat the challenge of coronavirus,” he said.
Bligh also called on Indian businesses operating in the UK, estimated at around 842 based on the CII/Grant Thornton ‘India Meets Britain Tracker', to closely follow the government guidance and work together with their trade bodies in the months ahead.
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"Coronavirus is the challenge of our working lives. Businesses will play their part in defeating it,” he added.
The 330-billion pounds in loans, equivalent to 15 per cent of the UK's GDP, unveiled by Sunak is designed to help businesses pay for supplies, rent and salaries as the country went into near-lockdown to combat the rapid spread of COVID-19, which has claimed 71 lives in the UK.
"We have never in peacetime faced an economic fight like this one," Sunak said, as he presented the package alongside British Prime Minister Boris Johnson at 10 Downing Street in London ahead of his Commons statement on Tuesday.
"We must act like any wartime government and do whatever it takes to support our economy," said Johnson.
The City of London, the heart of London's financial district, has warned that the pandemic could have a crippling effect on the area's many cafes and restaurants.
“With a very small residential population and with more companies allowing staff to work from home or closing their offices entirely, the impact of the current outbreak on City retail and leisure businesses could be devastating,” said Catherine McGuinness, Policy Chair at the City of London Corporation.
“The fundamental strengths of London will help us to recover and rebuild, as we have done before. London will always be one of the world's leading financial centres, a city of global talent with a highly-skilled workforce and more international HQs than any other European city,” she added in a joint statement with Lord Mayor of City of London William Russell. | 330-billion pounds worth of rescue measures announced in the house of commons. includes easier access loan facilities, liquidity assistance and a 12-month business rates holiday for the retail and hospitality sector. 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. | Positive |
https://www.moneycontrol.com/news/india/india-moves-one-notch-up-to-44th-rank-in-imds-competitiveness-rankings-2574729.html | India Economy
India has moved one notch higher, to the 44th place in terms of competitiveness, in the annual rankings compiled by International Institute for Management Development (IMD) which placed the US in the top slot.
The US became the most competitive economy globally driven by its strength in economic performance and infrastructure, followed by Hong Kong and Singapore in the second and third place, respectively.
The Netherlands and Switzerland were the other two nations in the top five slots.
This year, though India has moved up to 44th position worldwide, up one rank from last year, it is ranked the 12th most competitive economy out of the 14 Asian countries on the list.
Regarding India, the report said, "some of the challenges which India has to face for the year 2018 would be skilling of manpower and employment generation, streamlining the implementation of goods and services tax and balancing high growth with sustainable development goals".
The report further noted that "digital literacy and adequate bandwidth at rural areas and mobilisation of resources for infrastructure development needs are few more key areas where the government needs to concentrate".
The other top 10 countries include Denmark (6th), the UAE (7th), Norway (8th) and Sweden (9th) and Canada (10th).
Meanwhile, China (13th) continued with its steady rise in rankings over the past five years, climbing 10 spots since 2014, fuelled by a strong economic performance of its domestic market and workforce employment.
"Countries at the top of the rankings share an above average performance across all competitiveness factors, but their competitiveness mix varies. One economy, for example, may build its competitiveness strategy around a particular aspect such as its tangible and intangible infrastructure; another may approach competitiveness through their governmental efficiency," said Arturo Bris, Director of the IMD World Competitiveness Center.
The IMD World Competitiveness Center, a research group at IMD business school in Switzerland, has published the rankings every year since 1989. This year 63 countries are ranked with Cyprus and Saudi Arabia making their first appearance. | the US is the most competitive economy globally, followed by Hong Kong and Singapore. the Netherlands and Switzerland were the other two nations in the top five slots. this year 63 countries are ranked with Cyprus and Saudi Arabia making their first appearance. the report also noted that digital literacy and adequate bandwidth are key areas. a strong economy in china continues to climb 10 spots since 2014. | Positive |
https://www.moneycontrol.com/news/business/markets/indian-stocks-set-for-new-highs-even-though-rated-expensive-poll-2902791.html | Indian shares will hit a new record high by year-end despite being rated as expensive, strategists polled by Reuters said, citing high oil prices and election uncertainty as the biggest downside risks to the BSE Sensex.
While the tit-for-tat tariff war between the United States and China has hurt emerging markets and pushed the rupee to an all-time low, the benchmark index has gained nearly 14 percent this year and hit a lifetime high of 38,989 on Aug 29, outperforming other major global indices.
That comes at a time when India's perennial problem of higher inflation is reappearing due to rising oil prices and also as global monetary policy is shifting to a tightening bias.
Despite those concerns and increasing uncertainty ahead of national elections next year, Indian stocks have scaled several fresh highs and are forecast to continue that uptrend.
The Sensex is forecast to rise another 2 percent and hit a new high of 39,500 by end-December from Wednesday's close, according to the poll of around 50 strategists taken August 23-30. It is expected to gain a further 4 percent next year.
The latest bullish consensus was an upgrade from predictions in a May poll as the index has already breached the end-2018 level forecast back then, largely driven by expectations for strong corporate earnings.
Indeed, all 15 strategists who answered an extra question said company earnings growth has yet to peak in India.
"Strong macro-economic factors overall will push the index further up. Tax growth, good monsoon rains, rising consumption in the core industries and recovering corporate earnings will support," said SP Tulsian, an independent investment adviser.
Asia's third-largest economy took a hit from a ban of high-value currency notes in late 2016 and a hasty implementation of a goods and services tax in July last year, but recovered smartly.
It has regained top spot as the world's fastest-growing major economy, a position another Reuters poll said it would retain, supported by increased government spending before 2019 elections which will also benefit stocks.
"Elections will confirm whether PM Narendra Modi gets to serve a second term, and continue with his business-friendly policies after his popularity dropped following demonetisation and a premature GST implementation," said KK Mittal, investment advisor at Venus India.
However, the cost of India's biggest import commodity, oil, has risen and pushed inflation higher which could compel the Reserve Bank of India to tighten policy a lot faster and earlier than expected, weighing on stocks.
"A steep rise in oil prices coupled with depreciating currency is indeed a risk for the equity market which is not being priced-in right now," wrote Rajat Agarwal, strategist at Societe Generale.
While many Asian bourses have shown negative returns this year on capital outflows from emerging markets, Indian stocks have outperformed even as international investors have turned into net sellers this year.
But a majority, 30 of 42 strategists who answered a separate question, said Indian shares were expensive. The remaining 12 said they were fairly valued and none said they were undervalued.
The price-to-earnings or PE ratio a widely used measure for stock valuation for the Sensex is well above its long-term average and just a touch below a 10-year high.
"Valuations clearly suggest Indian stocks are very expensive at the moment. I have never seen such levels of PE multiples sustaining for a longer period of time," said CA Rudramurthy, managing director at Vachana Investments. | the Sensex is forecast to rise another 2 percent and hit a new high of 39,500 by end-December. the benchmark index has gained nearly 14 percent this year. analysts say high oil prices and election uncertainty are biggest downside risks. the tit-for-tat tariff war between the united states and china hurt emerging markets. a Reuters poll of around 50 strategists took place on august 23-30. | Positive |
https://www.moneycontrol.com/news/business/markets/wall-street-opens-higher-on-signs-of-lockdown-easing-5187281.html | US stock markets jumped at the open on Friday as some states prepared to relax curbs imposed to contain the coronavirus outbreak, with a surprise rise in orders for US-made capital goods adding to the gains.
The Dow Jones Industrial Average rose 112.98 points, or 0.48 percent, at the open to 23,628.24.
The S&P 500 opened higher by 14.84 points, or 0.53 percent, at 2,812.64. The Nasdaq Composite gained 35.32 points, or 0.42 percent, to 8,530.08 at the opening bell. | the Dow Jones industrial average rose 112.98 points, or 0.48 percent, at the open. the S&P 500 opened higher by 14.84 points, or 0.53 percent, at 2,812.64. the Nasdaq Composite gained 35.32 points, or 0.42 percent, to 8,530.08 at the opening bell. some states are easing curbs imposed to contain the coronavirus outbreak. | Positive |
https://www.livemint.com/Money/eqTncRoy32DAbVZqHkz2cM/With-strong-Q2-performance-SBI-seeks-to-ramp-up-credit-to-e.html | State Bank of India (SBI) has good news for the Indian economy. Notwithstanding all the news about a liquidity shortage among non-bank lenders and capital-starved banks, the economy will not be starved of credit. Rajnish Kumar , chairman of SBI, said the bank is well positioned to cater to the economy’s credit needs with a healthy capital base and enough liquidity. The lender’s capital adequacy ratio is 13.56% at the end of the September quarter, much higher than the regulatory mandate of 9.5% and its credit-to-deposit ratio is 66-67%.
And, what better timing than now when most of its competing non-banking financial companies (NBFCs) are struggling with liquidity issues. In fact, SBI is willing to lend a hand to them by buying off their portfolios to free up their capital. In October it bought ₹ 5,250 crore worth of loans from NBFCs and is willing to purchase another ₹ 15,000 crore in the coming months.
With the overhang of bad loans seemingly receding, SBI hopes to grow faster even as it begins to get back money from errant borrowers.
Its performance metrics on asset quality for the September quarter give enough indications of a meaningful improvement. SBI’s slippages for the quarter added up to ₹ 10,788 crore, the lowest in a year. With loans decaying slower than before, toxic assets as a percentage of the total loan book slipped below 10%. Ergo, the lender had to provide 30% lower than it did a year back for such loans.
What’s more, SBI topped it off with a return to profit after reporting losses for three consecutive quarters.
The lender could also recover a decent amount from past written-off accounts. Kumar said that the bank is sitting on a potential provisioning write-back of ₹ 6,000 crore, and it is confident to recover it from a steel account currently in insolvency courts. SBI has provided for more than 70% of the amount for accounts currently under insolvency proceedings.
But it would be unwise to leave out the potential troubles for the lender.
To start with, investors have to reckon that SBI has ₹ 4,000 crore worth of exposure to special purpose vehicles floated by subsidiaries of the troubled Infrastructure Leasing and Financial Services Ltd (IL&FS). It has close to ₹ 250 crore direct exposure to IL&FS and another ₹ 90 crore as equity.
Slippages from its loans to small and medium enterprises have been rising. The push from the government to give credit to small businesses cannot be ignored by SBI, hence, the lender is prone to taking on more risk.
That said, investors were elated by its second quarter results, sending the SBI stock up 6%, before it settled 3.5% higher for the day. Even so, the stock trades at a modest multiple of 1.1 times its estimated book value for FY20, indicating abundant caution on the part of investors.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | the bank is well positioned to cater to the economy's credit needs. it has a healthy capital base and enough liquidity. the bank's slippages for the quarter added up to 10,788 crore. it is willing to buy off its portfolios to free up their capital. the bank has a potential provisioning write-back of 6,000 crore. | Positive |
https://www.financialexpress.com/market/asian-shares-climb-as-china-blue-chips-hit-5-year-peak/2014423/ | Asian shares scaled four-month peaks on Monday as investors counted on super-cheap liquidity and fiscal stimulus to sustain the global economic recovery, even as surging coronavirus cases delayed re-openings across the United States. MSCI’s broadest index of Asia-Pacific shares outside Japan climbed 1% to its highest since February.
Eyes were on Chinese blue chips, which jumped 3%, on top of a 7% gain last week, to their loftiest level in five years. Even Japan’s Nikkei, which has lagged with a soft domestic economy, managed a rise of 1.3%.
“We think there is a case for raising tactical allocation on Asian equities in the context of global equity portfolios,” wrote analysts at Nomura in a note.
“We see a number of catalysts that could drive Asia ex-Japan (AeJ) equities’ outperformance over U.S. equities in the near term,” they added. “Better COVID-19 trends and mobility data in economies/markets that dominate the AeJ index should translate into faster economic recovery vs the U.S.”
E-Mini futures for the S&P 500 also firmed 0.8%, while EUROSTOXX 50 futures added 1.8% and FTSE futures 1.5%.Most markets had gained ground last week as a raft of economic data from June beat expectations, though the resurgence of coronavirus cases in the United States is clouding the future.
In the first four days of July alone, 15 states have reported record increases in new cases of COVID-19, which has infected nearly 3 million Americans and killed about 130,000, according to a Reuters tally.
“It is very clear that the U.S. never got the COVID outbreak under control the way that other countries did. By reopening the economy too soon, we have seen a frightening increase in the pace of new cases,” said Robert Rennie, head of financial market strategy at Westpac.
Analysts estimate that reopenings impacting 40% of the U.S. population have now been wound back.
“So markets will have to climb a wall of worry in July as economic activity likely softens from the V-shaped recovery seen over recent months,” warned Rennie. “We must remember too that U.S. and China relations are deteriorating noticeably.”
Two U.S. aircraft carriers conducted exercises in the disputed South China Sea on Saturday, the U.S. Navy said, as China also carried out military drills that have been criticised by the Pentagon and neighbouring states.
The risks, combined with unceasing stimulus from central banks, have kept sovereign bonds supported in the face of better economic data, with U.S. 10-year yields holding at 0.67% and well off the June top of 0.959%.
Analysts at Citi estimate global central banks are likely to buy $6 trillion of financial assets over the next 12 months, more than twice the previous peak.
Major currencies have been largely range bound with the dollar index at 97.189 having spent an entire month in a snug band of 95.714 to 97.808.
The dollar was a shade firmer on the yen at 107.72 on Monday, while the euro edged up to $1.1271.
In commodity markets, gold has benefited from super-low interest rates across the globe as negative real yields for many bonds make the non-interest paying metal more attractive.
Spot gold traded at $1,772 per ounce just off last week’s peak of $1,788.96.
Oil prices were mixed in early trade with Brent crude futures up 19 cents at $42.99 a barrel, while U.S. crude eased 23 cents to $40.42 amid worries the surge in U.S. coronavirus cases would curb fuel demand. | index of Asia-Pacific shares outside Japan climbed 1% to its highest since February. eyes were on Chinese blue chips, which jumped 3%, on top of a 7% gain last week. even Japan's Nikkei managed a rise of 1.3%. in the first four days of July alone, 15 states have reported record increases in new cases of COVID-19. | Positive |
https://www.moneycontrol.com/news/business/earnings/bajaj-finance-q4-profit-at-rs-948-crore-revenue-at-rs-6302-crore-5286471.html | live bse live
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NBFC major Bajaj Finance on May 19 announced a profit after tax of Rs 948 crore for the quarter ended March 2020, a 19.4 percent decline compared to numbers of the corresponding period last fiscal.
The profit was impacted by higher provisions but supported by lower tax as the company adopted a reduced rate of 25.17 percent for computation of income tax.
Loan losses and provisions (expected credit loss) for the quarter increased to Rs 1,954 crore against Rs 409 crore in Q4FY19.
During the quarter, the company said it had taken an accelerated charge of Rs 390 crore for two identified large accounts, an additional provision of Rs 129 crore on account of recalibration of its ECL model and a contingency provision of Rs 900 crore for COVID-19.
Hence, adjusted for contingency provision of Rs 900 crore for COVID-19, the profit for the quarter was up by 38 percent at Rs 1,622 crore, it added.
The company's net interest income (NII), the difference between interest earned and interest expended, increased sharply by 38 percent year-on-year to Rs 4,684 crore in the quarter.
New loans booked in the period increased by 3 percent to 6.03 million from 5.83 million in Q4FY19. "Adjusted for lower acquisition due to lockdown, new loans booked would have grown by 21 percent to approximately 7.03 million," Bajaj Finance told the BSE.
"Due to COVID-19 pandemic and the consequent lockdown, the company lost 10 productive days in Q4 FY20 resulting in lower acquisition of nearly 1.0 million loan accounts and lower AUM of approximately Rs 4,500
crore," it said.
Consolidated assets under management grew by 27 percent to Rs 1,47,153 crore compared to the year-ago period.
Gross non-performing assets (NPA) for the quarter remained flat at 1.61 percent on a sequential basis, while net NPA declined 5 bps to 0.65 percent compared to 0.70 percent in the previous quarter.
"Standard assets provisioning (ECL stage 1 and 2), including contingency provision of Rs 900 crore for COVID-19, stood at 159 bps and 97 bps excluding contingency provision under Ind AS," the company said.
The provisioning coverage ratio improved to 60 percent at the end of the March quarter from 57 percent in the December quarter.
The company said its liquidity position remained very strong, with overall surplus of approximately Rs 15,725 crore as of March 2020 on a consolidated basis and as of May 15, it was around Rs 20,900 crore.
For FY20, Bajaj Finance reported a 32 percent growth in consolidated profit at Rs 5,264 crore and a 42 percent rise in NII at Rs 16,913 crore compared to the previous year.
The stock has fallen 41 percent in a year, while it was down 53 percent year-to-date and 48 percent during the March quarter.
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Brokerages, however, say the stock will be the first to recover once the lockdown ends and economy reopens.
Morgan Stanley has an overweight rating on the stock, with a target price of Rs 2,740. HSBC has a “buy” call, with the target at Rs 3,700 per share.
Morgan Stanley expects the NBFC to have an above-industry return on equity (RoE) in FY21 and say it should bounce back the fastest as conditions improve.
"Structural asset growth and RoE potential have been expanding, while valuations are also attractive at current levels," the brokerage said.
HSBC feels the COVID-19 crisis may drive a marked change in spending patterns of consumers. "We may see 'in-house' spending being favoured against 'out-of-home' spending. Financing needs are set to rise as consumers and companies push for no-cost EMI," said the brokerage.
Growth moderation may be less in the medium term than feared by the market, it added. | NBFC major Bajaj Finance announces profit after tax of Rs 948 crore for quarter ended March 2020. the company adopted a reduced rate of 25.17 percent for computation of income tax. loan losses and provisions (expected credit loss) for the quarter increased to Rs 1,954 crore. net interest income (NII) increased sharply by 38 percent year-on-year to Rs 4,684 crore. | Positive |
http://www.livemint.com/Money/3IvGU9EcPBrccVjtT3oi9O/Why-Patanjali-is-going-the-ecommerce-way.html | Some may have seen the irony in Patanjali Ayurved Ltd tying up with foreign-owned/funded e-commerce companies, even as it swears to end the reign of foreign-owned consumer brands in the market.
Patanjali is only being pragmatic in doing what’s good for its own business, of being available where the consumers are. Its decision is one more pointer to the growing importance of e-commerce as a distribution channel for packaged consumer goods.
Now, companies such as Hindustan Unilever Ltd have highlighted how modern trade (chain stores) and e-commerce channels have been growing faster than the traditional (kirana) segment.
But is this company-specific or is it a broad trend? Will this continue?
Consider what data from Euromonitor International (Euromonitor), a market research provider, shows.
Between 2014 and 2017, revenues of modern grocery retailers rose by a compounded annual growth rate of 16.1%.
Modern stores would include formats such as supermarkets, hypermarkets and convenience stores. In this same period, traditional retail’s sales grew by 9.8% CAGR.
While the Euromonitor data does not capture internet retailing for grocery separately, it has some individual segments that give an idea of growth. These are not directly comparable with the modern/traditional grocery retailing figures. Remember these are relatively small in online at the moment, so take the growth figures with a pinch of salt.
Food and drink internet retail saw sales rise by 42.7% CAGR between 2014 and 2017, while beauty and personal care rose by 20.1% and home care by 35.1%.
In the coming five years, Euromonitor expects that growth rates of modern retail will exceed that of traditional retail, and growth of specific categories in internet retail will trend higher (see chart).
This rapid growth is what is drawing FMCG companies to this platform. Some of that growth may be sales shifting from the other channels, due to convenience or discounts, for example. Note that the forecasts are for real growth (stripped for changes in price) and, depending on price growth, can change.
While the e-commerce companies are sure to benefit from this additional revenue stream, what of the consumer companies? This is both an opportunity and a threat. The opportunity is that a new channel offers new growth opportunities, once it stops taking share from the other channels and sales begin to grow everywhere.
The growing smartphone population and cheaper data rates mean the target market for e-commerce can increase further. E-commerce does away with the need to have a physical store to sell in a locality, the reason why modern retail’s expansion has been relatively slow in smaller markets.
Where is the threat then? The threat is not different from what you see in modern retail. Bargaining power tilts towards the retailer, compared to traditional retail which is fragmented (even if organized under retailer associations). This leads to pressures on margins payable, incentives for promotion and display and of course, working capital.
The bigger worry should be the customer’s loyalty and whether the balance tilts more towards the retailer. Then, there is the ever-present risk of private labels, of retailers selling their own products that compete with the consumer companies. If modern retail’s share becomes dominant, they can even influence price changes (to benefit the customer), as is seen in developed markets.
Some caution is also due. Modern retail has not been as successful in gaining share as was expected two decades ago. E-commerce has one significant advantage in not being tied to real estate for expanding reach, which gives it a better chance of riding out rough patches.
For now, consumer goods companies have no choice but to hitch their wagons to the e-commerce train so that they don’t miss out on the ride.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | e-commerce companies are gaining more market share than traditional kirana. but is this company-specific or is it a broad trend?. food and drink internet retail saw sales rise by 42.7% CAGR. beauty and personal care rose by 20.1% and home care by 35.1%. e-commerce companies are gaining more market share than traditional kirana. | 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/markets/expert-view/market-thinking-will-get-reset-if-india-converges-global-geopolitical-opportunity-with-policy-saurabh-mukherjea/articleshow/75709737.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Executive Officer Programme Visit IIM Lucknow IIML Chief Marketing Officer Programme Visit IIM Lucknow IIML Chief Operations Officer Programme Visit
In the last 40 years, a US recession has unfailingly led to a recovery in our country, says Founder and CIO of Marcellus Investment Managers The headline quantum is staggering but I suspect that when we get the details if it will still be impressive. It might be less of a mind blowing stimulus than it looks at first glance because remember the PM said that it is including the fiscal stimulus already given plus the RBI stimuli and the two TLTRO bouts that Shaktikanta Das has already announced. So my maths suggests RBI has already stimulated the Indian economy to the tune of 4%; the first fiscal stimulus was 1%.The second bout is 5%. There is still nothing to say that a 5% fiscal stimulus in the context of a country like ours is a massive deal but I think what will be more interesting in the coming weeks is, as they announce the granularity of it, I suspect a lot of the stimulus will be in kind. It will be tax breaks, it will potentially be cheap land or subsidised land and I think that is where the real action will be because the prime minister did say last night that there will be bold economic reforms and he mentioned land, labour and liquidity.My suspicion, therefore, is that the liquidity will be in the form of subsidised loans, labour reforms on the anvil and the land might well be that if you announce investments of a certain quantum, the government of India will provide you land. If so, that is a massive deal that will lead to big amounts of both domestic and foreign investment. I think the FDI piece could really start moving. Hence, there is lots to look forward to. I think the quantum of the stimulus while it is impressive, the granularity potentially could be even more pleasantly surprising.I think a broader reset in thinking is gradually going to take place. I remember two months back, on 21 or 22 March, around the time the market was completely getting hammered, we published a blog saying that typically a US recession is a very reliable indicator of a coming boom in our country. In the last 40 years, a US recession has unfailingly led to a recovery in our country. A lot of people expressed scepticism when we said that. They said that it does not matter this time because this time the coronavirus is going to completely throw our economy off guard. I think people are gradually going to realise that is not the case. Coronavirus is not going to throw India completely off.A US recession creates cheap oil prices, gives low cost money and allows India to flourish. Lower oil and lower cost money gives India policy room. That policy room leads to stimuli such as the one that was announced last night. I think that reset in thinking is going to take place. Alongside that, I think it is also becoming clear both in India and to foreign investors that China’s diminished status in the wake of what has happened in the last four months has created strategic room for India. So there are two things converging: political or global geopolitical opportunity and policy room for India. I think if the two come together potentially over the next couple of months, it will lead to a reset in the thinking in the stock market away from this doom and gloom that our economy is punctured to a completely new layer of optimism.We can potentially become an electronics and electrical manufacturing hub and potentially a defence equipment hub. That is an exciting thing to look forward to. A reset in thinking which is around opportunity rather than disaster and an understanding that if we have been able to excel in highly competitive sectors like IT services and pharma , we could potentially do the same in new areas of opportunities such as medical equipment, defence equipment and electrical and electronics. That is where we got to look carefully at the fine print that will start getting announced from today onwards. | a US recession has unfailingly led to a recovery in our country, says a cxo. a broader reset in thinking is gradually going to take place, says a cxo. a broader reset in thinking is gradually going to take place, he says. he says the stimulus will be a 'big deal' that will lead to big amounts of domestic and foreign investment. | Positive |
https://www.businesstoday.in/markets/stocks/sensex-closes-higher-nifty-maruti-tata-motors-vedanta-top-gainers/story/287690.html | The Sensex and Nifty closed higher in trade today even as the Indian currency's rise above the 73 mark strengthened trading sentiment and Asian markets surged as US President Donald Trump and his Chinese counterpart Xi Jinping spoke by phone for resolving trade tensions between the two countries.
While the Sensex gained 579 points or 1.68% to 35,011, the Nifty rose 1.66% or 172 points to 10,553 level.
This is the highest closing for Sensex since October 4, when it had finished at 35,169.16.
On a weekly basis, both the Sensex and Nifty halted their two-week losing streak by surging 1,662.34 points or 5 per cent, and 523 points or 5 per cent, respectively.
Maruti (6.37%), Tata Motors (6.29%), and Vedanta (6.04%) were the top Sensex gainers.
Wipro (3.29%), TCS (1.28%) and Infosys (0.65%) were the top Sensex losers after rupee rose 68 paise intra day today. Market breadth was positive with 1,611 stocks closing higher compared to 1054 ending lower on the BSE.
BSE mid cap and small cap indices rose 0.78% and 0.76%, respectively.
BSE auto (4.05%), banking (1.42%), metal (3.04%) and oil and gas (2.46%) incides led the gains in trade today.
Auto stocks were the centre of brisk activity during the session after some automakers came out with encouraging sales figures for October month.
Adding to the upbeat mood, GST collections in October crossed the Rs 1 lakh crore mark, after a gap of five months, on the back of festive spending and anti-evasion measures.
The Finance Ministry on Thursday said 67.45 lakh businesses filed Goods and Services Tax (GST) returns in October and deposited Rs 1,00,710 crore as taxes.
The BSE and NSE will conduct a special 'Muhurat' trading session on Wednesday, November 7.
'Muhurat' trading, which is conducted on the auspicious occasion of Diwali, will be held between 1700 hrs and 1830 hrs, the stock exchanges said.
On Thursday, Sensex erased all gains in a highly volatile session to end 10 points lower as losses in shares of software exporters and pharmaceutical companies offset gains in capital goods, banking and auto counters, amid unabated foreign fund outflows.
Foreign institutional investors (FIIs), which had been selling on the Indian bourses, made fresh purchases worth Rs 348.75 crore Thursday, while domestic institutional investors (DIIs) sold shares to the tune of Rs 509.17 crore, provisional data showed.
Global markets
Asian shares advanced on Friday after President Donald Trump and his Chinese counterpart Xi Jinping spoke by phone and the Chinese state media reported progress in resolving trade tensions between their two countries.
Hong Kong's Hang Seng index jumped 3.8 percent to 26,365.04 and the Shanghai Composite index added 2.7 percent to 2,676.48. Japan's Nikkei 225 index surged 2.6 percent to 22,243.66 while South Korea's Kospi climbed 3.5 percent to 2,096.00. The S&P ASX/200 in Australia erased early losses to end up 0.1 percent at 5,849.20 and the SET in Thailand rose 0.9 percent. Shares also rose in Taiwan, India and Southeast Asia. | Sensex gained 579 points or 1.68% to 35,011, while the Nifty rose 1.66% or 172 points to 10,553 level. this is the highest closing for Sensex since October 4, when it had finished at 35,169.16. on a weekly basis, both the Sensex and Nifty halted their two-week losing streak by surging 1,662.34 points or 5 per cent, and 523 points or 5 per cent, respectively. | Positive |
https://www.moneycontrol.com/news/business/markets/smart-alpha-framework-helped-us-identify-leaders-amid-covid-19-sell-off-vikaas-sachdeva-5185781.html | Sticking to the “Smart Alpha” framework and keeping a strong risk-mitigation process in place is our way of steering through this crisis, Vikaas M Sachdeva, Chief Executive Officer, Emkay Investment Managers, said in an interview with Moneycontrol’s Kshitij Anand.
Edited excerpt:
Q) D-Street got excited about a second stimulus package. What are your expectations?
A) What you have been witnessing for the past several months is a more pragmatic approach towards legacy socialist issues like the alleviation of poverty and universal healthcare for all by not doling out subsidies and piecemeal solutions, but attacking the problem at its root by creating jobs for large sections of the population through catalyzing industry.
Hence, whether it is reducing borrowing rates for corporates for their current growth plans to reduce corporate tax rates to enable them to re-invest for future growth the government has been pulling out all stops.This process has acquired a different dimension due to the pandemic, but I have no doubt in my mind that the government has not lost sight of the long-term objective. To that extent, I believe that we will see not just ground-level measures in terms of lifting of lockdowns for the industry, but will also see focused stimulus packages being released at regular intervals Q) It was a tough FY and Emkay L.E.A.D. PMS an ideal “Wealth Creation” Portfolio Strategy gave a negative return in the same period but the scheme outperformed Nifty in the same period. March was a difficult month but if we take out March your scheme would have given positive returns. What was your strategy to deals with the COVID-19 outbreak to safeguard your portfolio? A) First, let me address the performance part of it. We have delivered consistent stellar performance due to the “Smart Alpha” framework being implemented. Related stories Vikaas Sachdeva CEO|Emkay Investment Management Daily Voice | Manufacturing to be a key wealth creator for next 5-10 years, says Vikaas Sachdeva of ...
DAILY VOICE | In frenzy to follow index movements, don't overlook quality opportunities: Vikaas M Sa...
'See money-making opportunities in high quality mid and small-cap businesses' Since its inception on November 18, the scheme has delivered a positive return despite the industry slipping by over 14 percent in that period. Over the last 12 months, the markets have been very volatile and the index itself has shaved off more than one-fourth of investor wealth. Emkay Lead, on the other hand, has managed to hold its own and fallen by less than half of the index. Likewise, for a near-term performance of 6 months wherein it has still delivered an alpha of 5.5 percent.
The “Smart Alpha” process creates a clear framework for the fund manager to operate in and manage risks in a better way. While focusing only on the Nifty250 space exclusively, and further curating the universe by focusing on high ROCE delivering companies in the space of value migration and consumption, the strong sectoral leaders that have been invested in, will outlive most dislocations in the stock markets.
This mitigates the selection bias most fund managers are subject to in times of extreme duress like these.
Further, by investing in a focused portfolio of 15 stocks on an equal-weighted basis rebalanced annually, the process tries to ensure that no allocation bias creeps in, thereby making the portfolio much less volatile, especially in times like these.
Sticking to the “Smart Alpha” framework and keeping a strong risk-mitigation process in place is our way of steering through this crisis.
Q) How is the next financial year looking according to markets and economic point of view? Will you tweak your strategy to combat volatility in the next 12 months?
A) As mentioned above, we will stick to our “smart alpha” framework which has a well-diversified portfolio across sectors that will capitalize on any wealth creation opportunity on offer.These are leaders with high cash-generating strong balance sheets, cost-efficient and have a great brand franchise which will become even stronger as this crisis ebbsHaving said that, the current crisis will throw up a new set of leaders in some other sectors and could potentially generate far more wealth. A) As mentioned above, we will stick to our “smart alpha” framework which has a well-diversified portfolio across sectors that will capitalize on any wealth creation opportunity on offer.These are leaders with high cash-generating strong balance sheets, cost-efficient and have a great brand franchise which will become even stronger as this crisis ebbsHaving said that, the current crisis will throw up a new set of leaders in some other sectors and could potentially generate far more wealth. We believe our current processes are well poised to identify and include such winners in our portfolio as and when they come to the fore
Q) IMF suggests that we could see the Great Depression 2.0. What is kind of impact would that have on markets and the economy? And, it would also mean that what investors lost in the market mayhem might just be a trailer?
A) What IMF sees as “The Great Depression 2.0” can be “The Great Reset ‘2.0” for India. I believe that national security concerns around global supply chains will drive global corporations to countries like India which are set to welcome them with a slew of investment-friendly measures being implemented on a continuous basis.
| we have delivered consistent stellar performance due to the "Smart Alpha" framework being implemented. since its inception on November 18, the scheme has created more than $1 billion in revenue. the scheme has also created more than $1 billion in revenue. it has also created more than $1 billion in revenue. 'we have a strong risk-mitigation process in place' | Positive |
https://www.moneycontrol.com/news/business/piaggio-aims-to-scale-up-two-wheeler-biz-in-india-3576181.html | Italian two-wheeler maker Piaggio is looking to expand its sales network in India to over 350 dealerships by the end of this year as part of scaling up its business in the country, a top company official said. The company, which currently has around 250 sales outlets, will however stick to its premium lineage even as it seeks to grow its volume in the world's largest two-wheeler market as it does not want to be perceived as mass segment player.
"We plan to expand our volumes in both domestic and export markets. Currently, our sales network is very limited (in India) as we are one of the last players to come on board here," Piaggio Vehicles India Managing Director & Chief Executive Officer Diego Graffi said during an interaction.
There is huge area in India where the company is not present in terms of sales network, he said adding that it has only been 6 years since the company re-entered the country.
"Through this expansion of sales network, we plan to expand our presence...we are planning to have 350 active dealerships by the end of this year," Graffi said.
When asked if the company would like to compete with mass market players in the country, Graffi said: "Wherever we are present all across the world in the two-wheeler space, we do not want to be perceived as a mass segment player."
He further said: "We are not interested in that (mass segment). We are not interested in market share...we are among the top when it comes to brand recall...that is what we are looking at."
The company, which sells Vespa and Aprilia brands in the country, sold 74,704 units in India in 2017-18. Piaggio has a manufacturing plant in Baramati in Maharashtra, where it manufactures the iconic Vespa alongside the Aprilia SR 150.
Graffi also supported the call for reduction in GST on two wheelers.
"In two-wheelers, we have seen a lot of challenges starting from mandatory third-party insurance which came into force from September 2018...then we have new legislations like mandatory usage of ABS from April 2019," Graffi said.
Then there is BS-VI challenge as well, so due to all these factors, the industry is going to provide better service, content, safety to consumer, he added.
"So, my idea is that reduction of GST rates on two-wheelers from 28 per cent to 18 per cent is quite recommendable from even our point of view," Graffi noted.
The company sees two-wheelers as a normal medium of mass transportation and "we don't see having such high GST applied (on the segment), he added.
Earlier, Bajaj Auto, Hero MotoCorp and TVS Motor Company had asked the government to slash GST on two-wheelers from the current 28 per cent slab to 18 per cent to give relief to the customers. | two-wheeler maker Piaggio is looking to expand its sales network in india to over 350 dealerships. the company currently has around 250 sales outlets in the country. the company does not want to be perceived as a mass market player. the company sold 74,704 units in india in 2017-18. the company has a manufacturing plant in Maharashtra where it manufactures the iconic Vespa. | Positive |
https://economictimes.indiatimes.com/news/defence/nepal-on-its-side-china-now-woos-bangladesh/articleshow/76477205.cms | NEW DELHI: In a bid to woo Bangladesh, China has provided a huge trade boost to the country by announcing tariff exemption for 97 per cent of Bangladeshi products effective from July 1.The decision has come one month after Bangladesh Prime Minister Sheikh Hasina and Chinese President Xi Jinping held a discussion to upgrade their bilateral relations during the COVID-19 pandemic.The Ministry of Foreign Affairs of Bangladesh announced on Friday that 97 per cent of items would be exempted of Chinese tariffs.As part of the government's economic diplomacy and the outcome of exchange of letters between Bangladesh and China, Tariff Commission of the Chinese State Council issued a notice recently on granting zero treatment to 97 per cent of tariff products of Bangladesh, the Dhaka Tribune reported, quoting the ministry's statement.With this announcement, a total of 8,256 Bangladeshi products will come under the 97 per cent of products that would be exempted from tariff.Currently, 3095 Bangladeshi products enjoy duty-free access to Chinese market under Asia-Pacific Trade Agreement (APTA). With the new announcement, 97 per cent of Bangladeshi products will join this zero-tariff club from July 1 that raised the numbers of Bangladeshi products with zero duty access to Chinese market to 8,256, the report said.During the Asian-African Conference which took place this week in Indonesia, Chinese president Xi announced that China will grant duty free market access for Least Developed Countries (LDC) 97 per cent of the tariff lines within a year.This beneficial market access scheme will be applied only for imports from LDCs that have diplomatic relations with China.China's tariff exemption is expected to help Bangladesh cushion the economic impact of the COVID-19 pandemic. | 97 per cent of items will be exempted from tariffs. the move comes one month after the COVID-19 pandemic. a total of 8,256 products will come under the zero-tariff club. currently, 3095 Bangladeshi products enjoy duty-free access to the Chinese market. a total of 97 per cent of Bangladeshi products will be exempted from tariffs. | Positive |
https://www.financialexpress.com/budget/budget-2020-expansion-of-gas-grid-experts-say-unified-tariff-to-help/1850688/ | Union Budget 2020: Finance minister Nirmala Sitharaman on Saturday proposed to expand the national gas grid from 16,200 km to 27,000 km to achieve the natural gas consumption target of 15% of the energy mix by 2023. This could be a viable option if such a measure is followed up by a unified tariff policy across the country, industry officials said.
In her Budget speech on Saturday, the FM said: “It is proposed to expand the national gas grid from the current 16,200 km to 27,000 km”, adding, “to deepen gas markets in India, further reforms will be undertaken to facilitate transparent price discovery and ease of transactions”.
The gas grid expansion will help connect the demand centres across the country for compressed natural gas (CNG) and piped natural gas (PNG) for cities and also industrial centres. At present, the pipeline network is limited to the west and north of the country.
“The government now plans to bring the east and south of the country under the gas grid. This will help connect all the demand centres for CNG and PNG not just in cities but also for industrial centres,” GAIL (India) marketing director Gajendra Singh told FE.
However, Singh added, the expansion of grid infrastructure will work provided the measures are supported by policies on increasing the demand, and keeping the pipeline full at any given time which is possible through a unified tariff structure. A unified tariff will allow any industrialist to set up a gas-based plant at any location of his choice, he said.
Only 34 geographical areas (GAs) in the country had city gas networks till 2014. Since then the government
has given out CGD licences for 174 GAs covering 70% of the population and 53% of the country’s GAs spanning 400 districts.
Watch Video: What is Union Budget of India?
A senior BPCL official looking after the gas vertical said the government target of increasing natural gas consumption to 15% of the energy mix by 2023 will largely depend on three factors: reaching out to customers, encouraging them to shift to CNG and PNG, and approaching industrial customers who are still using fuel oil.
“The government is doing its best to reach the customers, but the pricing of CNG and PNG will have to remain cheap in near future for people to see value in shifting to cleaner fuels. Also, since
CNG and PNG are out of the GST net, it is still unviable for industrial consumers who use fuel oil as a major resource. Once it comes under the GST net, it will also give the incentive of input tax credit and improve the
overall adoption of natural gas,” the BPCL official said. | u.s. government wants to increase natural gas consumption to 15% by 2023. gas grid expansion will help connect demand centres for compressed natural gas (CNG) and piped natural gas (PNG) for cities and industrial centres. a unified tariff will allow any industrialist to set up a gas-based plant at any location of his choice. u.s. government has given out CGD licences for 174 GAs covering 70% of the population and 53% of the country’s GAs spanning | Positive |
https://www.financialexpress.com/market/stock-market-nifty-50-bse-sensex-gain-on-opening-bell-factors-moving-equities-today/2030350/ | Sensex and Nifty added to their gains and surged on Tuesday morning,as they looked to carry the momentum of a three-day gaining streak. S&P BSE Sensex gained 400 points while the 50-stock NSE Nifty managed to cross the 11,100 mark. Financials along with Reliance Industries Limited helped the stock markets soar higher. Domestic equities were taking cues from global peers that surged after several vaccine trials for the coronavirus showed progress. HDFC Securities is bullish on the Nifty, expecting it to jump even further during this week.
Financials, RIL lift Sensex: Banking and finance stocks were again seen carrying the benchmark index higher on Tuesday. ICICI Bank was the top Sensex gainer on the opening bell, followed by HDFC Bank. Axis Bank, Kotak Mahindra Bank were also in the green. India’s largest private company, Reliance Industries Limited again helped the stock markets jump, as it gained 2.14% to trade at Rs 1, 960 per share.
Sector scanner: All sectoral indices on the Nifty were trading with gains on Tuesday morning. Nifty PSU Bank was the top gainer surging over 2%, followed by Nifty Auto, Nifty Private Bank, and Nifty Bank.
Global cues: US stock indexes closed higher Monday, with the Nasdaq scoring a record close and its best daily gain in nearly 12 weeks. Asian share markets were rising on Tuesday as the coronavirus vaccine trial showed positive progress. “The Lancet medical journal published promising results of a Covid-19 vaccine study by the University of Oxford and AstraZenaca. Earlier in the morning, Pfizer and BioNTech reported positive early data from their own Covid-19 vaccine study,” HDFC Securities said.
EU leaders agree on 750 billion recovery fund: A deal for a massive stimulus plan was agreed on by European Union leaders The EU has faced the brunt of the coronavirus pandemic and it hopes that the deal will reviatise the bloc’s future.
Technical view: “The markets achieved their target of 11100 upon opening itself! We should now be headed towards the levels of 11500 – this may not be a one way move, but ideally that should be the direction of this market. Hence a “buy on dips” strategy on the Nifty can be implemented. Every fall would be a chance to enter a buy trade,” said Manish Hathiramani, Index Trader and Technical Analyst, Deen Dayal Investments. | domestic equities taking cues from global peers that surged after several vaccine trials for the coronavirus showed progress. ICICI Bank was the top Sensex gainer on the opening bell, followed by HDFC Bank. ICICI Bank was the top gainer on the opening bell, followed by HDFC Bank. ICICI Bank was the top gainer on the opening bell, followed by HDFC Bank. | Positive |
https://economictimes.indiatimes.com/blogs/et-editorials/public-enterprises-as-stellar-successes/ | The marked stock market rally with the benchmark BSE Sensex quoting at all-time highs, in the midst of a severe economic slowdown, points to the triumph of expectations over lacklustre data, and much more as per Monday’s ET 500 2019 analysis. True, the rally has been concentrated in large caps. But select growth stocks have made a difference, including turnaround public sector scrips, and the top wealth creators have led with innovation.
Notice that the stock which has gained the most is in the credit-constrained non-banking financial company (NBFC) sector, Manappuram Finance, which has been able to leverage the rising demand for gold loans to boost offtake. Next comes PI Industries, a leading contract manufacturer to global agrochemical majors. The top five gainers have been those of Abbott India, the largest pharma multinational here, Gujarat Gas and Relaxo Footwear. It is significant that performance-focused public sector undertakings (PSUs) now provide top-notch stock returns. Gujarat Gas, a city gas distributor, has been able to shore up its dominant presence in tier-III towns over its peers operating in space-constrained metro markets. There are several other such high-performing PSU stocks: BEML, Cochin Shipyard and Rites. BEML used to make dumpers for mining companies but has since innovatively transformed itself and now has about 50% market share in the supply of metro coaches. It is notable that some 90% of BEML’s revenue comes via open competitive bidding, and mostly from the private sector, which, in turn, testifies to a seasoned business-like approach to operations.
Further, Rites, under the railways ministry, derives two-thirds of its revenue from consultancy services, including buoyant export orders. Underperforming public enterprises should not blame government ownership. Public ownership has not prevented some companies from excellence in execution and strategic diversification. Underperforming companies should be closed or privatised. And the proceeds used to set up fresh companies in newly strategic sectors.
Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Economic Times.
END OF ARTICLE | the rally has been concentrated in large caps, but select growth stocks have made a difference. the top wealth creators have led with innovation. top five gainers have been those of Abbott India, the largest pharma multinational here, Gujarat Gas and Relaxo Footwear. a number of high-performing public sector undertakings (PSUs) are now providing top-notch stock returns. | Positive |
https://www.financialexpress.com/money/raising-rs-1-crore-for-daughter-sukanya-samriddhi-or-ulip-or-mutual-funds-must-know-facts/1488999/ | With the rising cost of living as well that of education, marriage etc, making proper investments is a matter of concern for most of the parents to make funds available to meet the financial goals for their daughter(s) as and when required.
Before choosing an investment plan, therefore, parents must take into consideration the effect of inflation, which may increase the current cost many-folds, resulting in a higher fund requirement in the future.
Assuming that the requirement of Rs 1 crore has been calculated keeping in mind the effect of inflation and also the time when the girl turns 21-year old, let’s evaluate the three investment options and the amount to be invested periodically to achieve the target on time.
Sukanya Samriddhi Yojana (SSY)
Among the several investment avenues to reach the goal, SSY has become a very popular choice due to attractive interest rate, complete tax benefits and sovereign guarantee. However, there is a limit on investments per financial year, which is currently Rs 1,50,000. If the current interest rate of 8.5 per cent and investments as per the limit continue and the parent of a daughter starts investing from the year of the birth of the girl, the maximum Rs 74,96,802 would be accumulated in the SSY account at the end of 21 years, if Rs 1,50,000 is invested at the beginning of every year for 15 years.
So, SSY alone won’t be sufficient to accumulate Rs 1 core in 21 years. Moreover, as the age of the girl increases, lesser will be the return till the age of 10, as an SSY account may be opened for a girl child till she turns 10 years old.
Also Read: Know some little known facts about Sukanya Samridhhi Yojana
Unit-linked Insurance Plan (ULIP)
Along with insurance, ULIPs also provide an investment option through the equity route. While the insurance part ensures additional security, equity investments bear the market risks, but generate higher return over the long term. ULIP investments are also completely tax-free.
Assuming that ULIPs take the conservative route generating about 9 per cent long-term compound annual growth rate (CAGR), about Rs 15,541 need to be invested at the beginning of every month (i.e. about Rs 1,86,493 every year) for 20 years starting from the year of birth of the girl.
Also Read: 5 little known facts about ULIPs which you need to know
Mutual Fund (MF)
Investments in MFs are subject to market risk depending on the category of a fund, but generate higher returns than other investment options over the long term. Investments in equity-linked saving schemes (i.e. ELSS category of MFs) enjoy tax deductions u/s 80C, while other categories don’t enjoy such benefit. Moreover, from this year, 10 per cent long-term capital gain (LTCG) tax has been imposed on equity MFs over the LTCG of Rs 1 lakh on redemptions made in a financial year. The gains from MFs are considered long term, if redemption is made after one year from the date of investment.
Assuming long-term CAGR of 12 per cent, a person has to start a monthly SIP of about Rs 10,871 (i.e. about Rs 1,30,455 per year) for 20 years to accumulate a corpus of Rs 1 crore (without considering the LTCG tax of approximately Rs 7.29 lakh).
Also Read: Know in which category of MF you should invest | parents must take into consideration the effect of inflation, which may increase the current cost many-folds. if the girl turns 21-years-old, the amount to be invested annually will be Rs 1,50,000. SSY is a popular choice due to attractive interest rate, complete tax benefits and sovereign guarantee. if the current interest rate of 8.5 per cent and investments as per the limit continue, the maximum Rs 74,96,802 would be accumulated in the SSY account at the end of 21 | Positive |