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https://www.financialexpress.com/auto/bike-news/bs-vi-honda-activa-125-fi-india-launch-on-11-september-to-feature-silent-start-system/1701987/ | The new Honda Activa 125 will be powered by the same engine 125cc engine which is now BS-VI compliant, however, the manufacturer has not revealed the power figures. Besides, it will boast of some segment-first features.
Honda Motorcycle and Scooter India is all set to launch its first BS-VI product in India tomorrow. BS-VI Honda Activa 125 Fi was unveiled in the country June this year when Honda revealed that the BS-VI emission standards compliant Activa will carry a price tag bigger by 10-15% compared to its BS-IV counterparts. The new Activa 125 will come with a six-year warranty package which will include a 3-year standard warranty and a 3-year optional extension.
The new Honda Activa 125 will be powered by the same engine 125cc engine which is now BS-VI compliant, however, the manufacturer has not revealed the power figures. The engine will be fuel injected, making the Activa inly the second scooter in India to feature FI tech – the first being Hero Maestro Edge 125.
The new BS-VI Activa 125 will now feature a side-stand indicator with engine inhibitor so the scooter can not be started if the side stand is down. The main highlight of the new features that will come with the BS-VI Activa 125 is the new starter motor for a noiseless engine start, along with an engine idle start-stop system for improved fuel economy.
New Honda Activa 125 images: BS-VI engine, ‘noiseless’ starter and more
In terms of styling, the new BS-VI Honda Activa 125 has received some minor styling tweaks that include restyled LED position lamp. It does get new colour options that include Rebel Red Metallic, Black, Heavy Grey Metallic, Midnight Blue Metallic, Pearl Precious White, Majestic Brown Metallic.
It will come equipped with a 5-in-1 functional switch, pass-by switch, front glove box and more. The scooter gets a digital-analogue instrument cluster that also shows real-time fuel-efficiency along with the distance-to-empty readout. | the new Activa 125 will be powered by the same engine 125cc engine which is now BS-VI compliant. the scooter will come with a six-year warranty package which will include a 3-year standard warranty and a 3-year optional extension. the main highlight of the new features that will come with the BS-VI Activa 125 is the new starter motor for a noiseless engine start. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/dependence-on-h-1b-has-fallen-significantly-infosys-ceo/articleshow/76681351.cms | (This story originally appeared in on Jun 28, 2020)
BENGALURU: Infosys CEO Salil Parekh said the company's dependence on H-1B visas has reduced significantly, given its local hiring in America, and said it will hire even more locally to deal with the growing visa challenges.He was responding to shareholders' questions around the US suspension of work visas at the company’s 39th annual general meeting (AGM) on Saturday. He said the company hired over 10,000 Americans in the US in the last two years, and over 60% of its employees in the US are now visa independent. Infosys had 17,709 employees in the Americas at the end of 2019-20.The AGM was held virtually for the first time and 1,771 shareholders participated.In his chairman's address, Nandan Nilekani described the Covid-19 pandemic as extraordinary and unprecedented. “It has impacted the world and every country, business and individual. These are not easy times for any of us, and our clients are dealing with several challenges as well," he said. Retail, travel & hospitality have slumped, he said. Bankers, he said, have to deal with deferred loan payments, manufacturers with broken supply chains. 5G projects and adoption, he said, will slow down as corporates begin to reconsider their capital allocation, and media & entertainment have been affected by reduced outdoor activities and lower ad spends.But the company said technology's medium and long-term future looked very good. “Technology is essential to get it all working, the efficiencies of automation to make it viable, and experiential design to unlock more value from this work. We will help our clients with all of that. We have already pivoted our resources to the new needs of our clients and strengthened our expertise in cloud, workplace transformation and smart automation to be able to help them accelerate and scale their digital endeavours,” Nilekani said.CEO Salil Parekh said the pandemic has opened up newer business opportunities through vendor consolidation. He said the company will look at taking over some captive businesses. He said the company has not seen any large deal cancellations so far. “There will be some overall negative impact because of Covid-19 related challenges in the near term, but in the medium to long-term, we see opportunities for clients as they fast-track their digital transformation journey and consolidation of vendors. The impact is less compared to what we envisaged in April and many of the economies have opened and there is strong government fiscal monetary support,” he said.Chief operating officer UB Pravin Rao said there was no major disruption on account of work-from-home, and said they have heard very positive responses from clients. "Initial benchmarking shows we have been able to maintain productivity and our deliverables to our clients, and we have not seen any SLA (services level agreement) misses from our clients," he said, adding that they are in no hurry to get people back into office, and will do so in a slow and calibrated manner.Asked about the sharp shrinkage in margins over recent years, CFO Nilanjan Roy said it was a result of investments in digital capabilities, hiring in markets like the US, reskilling of employees, investments in sales teams, and pricing pressure in the core business. He said there was margin resilience in 2019-20, and the company is focused on improving margins, though there could be issues in the short term because of Covid-19. The Infosys Board has recommended a final dividend of Rs 9.5 per share for fiscal 2020 and along with an interim dividend of Rs 8 per share paid in October 2019, the total dividend payout for the year was Rs 8,120 crore. | company's dependence on H-1B visas has reduced significantly, given its local hiring in the u.s. the company hired over 10,000 americans in the last two years. over 60% of its employees in the u.s. are now visa independent. a spokesman for the company said the company will hire even more locally to deal with the growing visa challenges. | Positive |
https://economictimes.indiatimes.com/news/international/world-news/twitters-dorsey-donates-3-mn-to-test-universal-basic-income/articleshow/76898331.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://economictimes.indiatimes.com/markets/stocks/news/this-lady-money-manager-says-mute-the-news-if-you-are-a-mutual-fund-investor/articleshow/65291055.cms |
It's a TINA moment for the mutual fund industry, which will grow at 20-25 per cent annually till 2025, says Radhika Gupta , CEO, Edelweiss Asset Management Her aim is clear. She is targetting an asset under management (AUM) of at least Rs 25,000 crore by the end of 2018-19. The AUM of Edelweiss Asset Management jumped to Rs 14,000 crore, from Rs 6,000 crore, during the last one year and a half.TINA is short for there is no alternative. She is not without reasons. Gold, said Gupta, has not delivered any return during the past 10 years while real estate has its own problems. Fixed deposits are not looking attractive as real return on deposits is virtually zero.In a bid to tap upcoming opportunities in the mutual fund space, Edelweiss AMC is planning to double its branches to 24 by the end of FY19, from 12 at present. Gupta's conviction is Indian mutual fund industry will easily become Rs 100 lakh crore by 2025 against Rs 22 lakh crore now.Rapid digitisation and demonetisation worked as a boon for the industry, she feels. “We believe that the story of financialisation of assets emerged post note ban in November 2016,” Gupta added.On the current market scenario, she told ETMarkets.com that volatility will continue in the second half too due to uncertainty over crude oil, upcoming general elections, rising interest rates globally and trade war woes.She called on investors not to get affected by everything going on in the market. Her counsel: One should continue with their systematic investment plans (SIPs) as earnings have hit the bottom and markets are now at the beginning of a pick-up cycle.“We do believe that corporate earnings are improving and it is happening in a broad-based way. Regardless of the Nifty and the Sensex, this year’s equity growth will be a lot more sustainable. Ultimately, prices are slaves of earnings,” Gupta reasoned.She is all for long-term play as "one election or a bit of rising crude prices does not matter for the market and investors should be clear about their financial goals".An investor should choose financial products according to her risk profiles, she went on to say. “If you are a high-risk investor, go for small and midcap funds in a staggered manner. A conservative investor can choose hybrid funds. Stick to your asset allocation and hold. Don’t react to news,” Gupta stressed.2017 was an easy year for investors as whatever they touched turned into gold. So, how high net worth investors (HNIs) are dealing with 2018?"I think this year, they will look for yield. So, they will focus on products that can manage volatility," Gupta replied. “Hybrid funds, good quality corporate bond funds that can give you decent returns without taking any material credit risk are some of the products they must be focusing on, along with their equity investments.”Her assessment is the consumer discretionary theme will throw up big gainers in coming years as India is moving from $2 trillion economy to $5 trillion economy which China took many years to achieve. In addition, rising per capita income is seen to further boost this space.“Discretionary consumption as well as some construction companies will throw (up) big gainers. Diagnostic players in the healthcare segment and emerging financial services business will do well. When an economy will grow, you may buy more premium biscuits, more retail will happen, people look for better air conditioners and spend on health checkup, etc,” Gupta emphasised.Looking at some funds of Edelweiss AMC, Edelweiss Large and Mid Cap Regular Plan has delivered 3.51 per cent return on a year-to-date basis and 14 per cent in the last one year, data available with Value Research on August 4 showed. Edelweiss Arbitrage Fund's return scorecard is 3.53 per cent so far this year and 5.93 per cent during the past one year. Similarly, Edelweiss Balanced Advantage Fund has risen 5.61 per cent YTD and 9.87 per cent in the last one year.What are the parameters for stock selection for Edelweiss AMC funds? Gupta's answer: Good quality management, growth story with long-term earnings, potential for leadership in a particular segment as well as participation in a growing industry.For debt fund investors, she suggests looking for the shorter end (2-3 years) of the curve for better returns and good quality corporate bond funds. “It is a good time to look at short-term debt as a category, given that the yield has moved up now,” she explained.Liquid funds are good for investors who would like to park their money for less than 1 month, whereas investors with time horizon of 1-6 months can go with arbitrage funds. She also added that arbitrate funds delivers better return than liquid fund on post-tax basis.About the recent correction in broader markets, she termed it as "technical correction"", adding that "one should not worry about the present turmoil".Benchmark equity indices are hovering at their lifetime highs, but as much as 80 per cent of the companies on the National Stock Exchange are in the red on a year-to-date basis."India can never be represented by 50 companies in the Nifty index as new themes are not there in our so-called benchmark indices. Media has given the term benchmark to the Sensex and the Nifty," Gupta said further.Mantra for financial freedom? She exhorted women investors not just to be literate, but be financially literate.“More and more women are also coming forward to make financial decisions. Women are always good budget keepers and decision makers at home. Even in promoter families, women are coming forward to take decisions. They are involved in money. This is also going to grow,” she predicted.On prospects of Indian companies, especially after iPhone make Apple hit a market valuation of $1 trillion last week, she said India has a collection of great names that may become multifold in coming years.She is clear that companies with quality business will continue to grow as the journey of select largecaps in India has just started. “Opportunities in select businesses, including banking, are limitless,” she signed off. | the mutual fund industry will grow at 20-25 per cent annually till 2025. the industry will easily become Rs 100 lakh crore by 2025 against Rs 22 lakh crore now. the u.s. is the world's largest mutual fund market. the u.s. is the world's largest mutual fund market. the u.s. is the world's largest mutual fund market. | Positive |
https://www.financialexpress.com/auto/electric-vehicles/electric-cars-ev-adoption-india-electric-car-leasing-ev-cars-india-electric-car-models-india/1941901/ | Besides, the government is also looking to incentivize retail consumers by offering a tax deduction up to Rs 1.5 lakh on interest paid on loans taken to purchase an EV, in addition to slashing the GST from 12% to 5%.
The buzz surrounding electric vehicles (EV) is not new in the world of automotive technology. With the perils of climate change looming over us, the decision of switching over to EVs is not a question of ‘if’, but ‘when’. As per the World Air Quality Report 2018, 20 of the 30 most polluted cities of the world are in India. Millions of citizens in our metros are grappling with serious ailments, and an estimated 1.24 million deaths (12.5% of all deaths) in 2017 alone have been attributed to air pollution.
On the other hand, our substantial reliance on fuel imports poses various economic and strategic challenges for the future growth of the economy. Our oil import dependency reached an all-time high of 84% in 2018-19, of which 47% is consumed by the transport sector alone.
The government drives for a greener future
As a structured push towards a sustainable and greener future, the Central Government has recently announced the second phase of the Rs 10,000 crore scheme, termed Faster Adoption and Manufacturing for Hybrid and Electric vehicles (FAME II). Under this scheme, the centre has sanctioned incentives to the tune of Rs 8,596 crore to boost electric mobility and increase the number of electric vehicles in commercial fleets.
Alternatively, the government is looking to incentivize retail consumers by offering a tax deduction up to Rs 1.5 lakh on interest paid on loans taken to purchase an EV (Section 80EEB), in addition to slashing the GST on EVs from 12% to 5%, and providing road tax exemptions and registration waivers.
As per a NITI Aayog proposal, India needs to make a 100% switch to electric vehicles by 2030 for new automobile sales. While this is a very audacious goal, it could help us save 64% of energy demand for road transport and cut down carbon emissions by 37% pursuing a shared, electric, and connected mobility future.
OEMs buckle up
Automotive Original Equipment Manufacturers (OEMs) outside India, are working round the clock to make EVs lucrative in terms of design and performance improvements that will make EVs the first choice for consumers. The Tesla 3, for example, is not just a beautifully designed car but offers a “thrilling driving experience” as per a Consumer Reports survey. No wonder Tesla has a top-of-mind recall for EVs and has accounted for 13% of global plug-in vehicle sales for 2019.
Closer home, to make EVs a profitable proposition, OEMs are looking to aggressively cut costs. In fact, OEMs are going a step further by designing a few parts of these cars from eco-friendly or recycled materials that will help bring down costs and further reduce the ecological impact.
In some of the small-to-midsize car segments, OEMs have been able to bring the upfront cost of EV models almost at par with their diesel counterparts (helped partly by the subsidies) – a feat that was considered to be wishful thinking till very recently.
The stringent fuel-economy and emissions policies have created an opportunity for startups too; especially for those operating in the battery tech, vehicle diagnostics and analytics, and charging aspects of EVs.
Many startups have not only managed to raise funding from some of the biggest names in the venture capital space but are also benefiting from key public-private partnerships. Complementing the Central Government’s National Electric Mobility Mission Plan, many state governments such as Delhi, Maharashtra, UP, Kerala and Telangana have drafted their individual EV policies.
But is India prepared for these developments in mobility infrastructure?
While we are moving in the right direction, there are a lot of issues that need to be ironed out. EVs today are costlier to manufacture. There is a huge dependence on imported components and batteries. All this adds up to a higher upfront cost for the majority of currently available models (even after netting out the benefit from subsidies), which becomes a huge deterrent for the highly price-conscious Indian consumer. While addressing a consumer base in which only a fraction can afford the upfront cost of a car, and even higher upfront cost with lower “total cost of ownership” becomes a very hard sell.
Secondly, even when a consumer starts considering EVs, “where will I charge this thing” is the first question that pops up. The inadequate power supply in many parts of the country doesn’t help, and neither do the limited options for charging and battery swapping. As per a report, India had only 650 charging stations in 2018, compared to 456,000 in China during the same year. Even as residential apartments start setting up charging infrastructure in their parking lots, usage of these EVs for intercity purposes will continue being a challenge because the majority of the current models have a low range, and developing charging infrastructure along highways will be even less viable than doing it in denser urban pockets.
Further, “EV first” cars are yet to come to India. The expectation from the consumers is to buy EV versions of cars that are already available in ICE versions, as against creating EV-only cars that are so compelling that consumers say “I want this awesome car, and I’m fine even if it is an EV” (e.g., Tesla). The design science of an EV is different from that of an ICE. “EV first” cars will make better use of the new degrees of freedom that EV technology offers, e.g., the space that gets saved by the elimination of the engine and its associated peripherals in a fossil fuel car can be smartly used to increase the cabin space.
Yet another challenge that needs to be addressed is dependence on fossil fuels for upstream power generation. The lack of affordable renewable energy means charging EVs will put a greater toll on the already stressed coal-powered electricity infrastructure. We need to integrate power generation from renewable sources with conventional grids in order to meet EVs’ demand to bring an effective reduction in carbon emissions as well as cut down on electricity cost, which accounts for about 30% of the total cost of operating an EV.
Lastly, consumers have not had an opportunity to experience a personal rendezvous with EVs. There just aren’t enough private use EVs on the road at present. In the near future too, most of the EVs we will see will be the ones for commercial purposes and public transport. Hence, many people are hesitant to invest in an asset with such little information. A good way around this dilemma is to opt for subscription-based self-drive EVs, that will let consumers experience how an EV works at a fraction of the cost and without any long term commitment.
Also read: Car & bike sales boom likely but will come with job losses & pay cuts
Conclusion
The strong intent of the government to make a transition towards EVs has resulted in a slew of investments and technological advancements in the EV space. It has given an impetus to indigenous manufacturing through FAME II and tax breaks. The subsidies and incentives for promotion of electric mobility to three and four-wheelers for commercial and fleet applications will help bring in last-mile connectivity.
OEMs too are gearing up to bring electric versions of existing cars, despite concerns of a lack of charging infrastructure. This year, we can expect about 21 new EV variants to be launched in India. Hyundai, Mahindra, MG and Tata already have their EVs on Indian roads, with Lexus, Nissan, Porsche, Maruti, Audi, Tesla, and many others to make an entry soon with completely electric or hybrid models.
If the Indian automobile industry moves on course with NITI Aayog’s estimation, coupled with strong consumption demand, India could reduce its annual diesel and petrol dependence by 156 million tonnes of oil equivalent, resulting in fuel savings of US$60 billion, while cutting down on carbon emissions by as much as 1 Gigatonne by the year 2030!
Authors: Anupam Agarwal and Karan Jain, Co-founders, Revv shared mobility platform
Disclaimer: The views and opinions expressed in this article are solely those of the original author. These views and opinions do not represent those of The Indian Express Group or its employees. | government is offering tax deduction on interest paid on loans taken to purchase an EV. also slashing the GST on EVs from 12% to 5% and providing road tax exemptions and registration waivers. a total of 1.24 million deaths have been attributed to air pollution in 2017. a total of. 1.2 lakh people have been killed in the last three years. | Positive |
https://www.businesstoday.in/current/economy-politics/govt-to-set-up-development-finance-institution-in-3-4-months/story/425723.html | The government plans to set up a Development Finance Institution (DFI) in the next three to four months with a view to mobilise Rs 111 lakh crore required for funding of the ambitious national infrastructure pipeline, according to Financial Services Secretary Debasish Panda.
"We need a development financial institution as infra financing needs patient capital, and banks are currently not suited for lending for long term projects which do not generate any cash for years," he told PTI in an interview. Even deepening the bond market with regard to infrastructure financing is a matter which is receiving attention of the government and there is a need to do something more in order to have a robust bond market for infrastructure financing, he said.
"To provide funding, to enhance credit rating of projects, a DFI is needed, and we are actively working on it, and soon such an institution will be in place. We are in the process of finalising details such as shareholding of the government and whether such a body will be formed through a statute.
"The DFI will be a catalyst, and would fund projects where others are not willing to enter because of the risks involved," he said. Further, Panda said the work is in progress and the DFI should become a reality soon, may be by the end of the current financial year or early next year.
In her last Budget speech, Finance Minister Nirmala Sitharaman had proposed to set up DFIs for promoting infrastructure funding. About 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with projected investment of a whopping Rs 111 lakh crore during 2020-25.
NIP, a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens, will be crucial for attaining the target of becoming a $5 trillion economy by FY 2025. The DFI, Panda said, will have a key developmental role apart from the financing role. "All kinds of innovating financial mechanisms is what this new institution will be expected to do," he said.
During the pre-liberalised era, India had DFIs which were primarily engaged in development of industry in the country. ICICI and IDBI, in their previous avatars, were DFIs. Even the country's oldest financial institution IFCI Ltd had acted as a development finance institution.
In India, the first DFI was operationalised in 1948 with the setting up of the Industrial Finance Corporation (IFCI). Subsequently, the Industrial Credit and Investment Corporation of India (ICICI) was set up with the backing of the World Bank in 1955. The Industrial Development Bank of India (IDBI) came into existence in 1964 to promote long-term financing for infrastructure projects and industry.
Talking about the financial health of banks, Panda said that 11 out of the 12 public sector banks have posted profits as on September 30, 2020. Even gross Non-Performing Assets (NPAs) have gone down substantially and the provision coverage ratio has increased, he noted. "There is scope for improvement on return on assets and banks are working on that. By and large, all the financial parameters are showing positive results," he said.
Also read: Centre receives 120-130 FDI proposals from China since April 2020 | government plans to set up a development finance institution (DFI) in next three to four months. the institution will mobilise Rs 111 lakh crore needed for funding of the national infrastructure pipeline. about 7,000 projects have been identified under the pipeline with projected investment of Rs 111 lakh crore. the government is also considering a symbiotic relationship with the u.s. government. | Positive |
https://economictimes.indiatimes.com/news/economy/agriculture/assam-to-set-up-100-farmers-producers-company-for-ramping-up-agricultural-production/articleshow/76268218.cms | GUWAHATI: Assam has decided to set up 100 Farmers’ Producers Company in the state for ramping up agricultural production, collection and ensuring linkage with the national and international markets.Chief Minister Sarbananda Sonowal today reviewed the functioning of agriculture department city and directed the Assam Seeds Corporation Limited to produce the seeds required by the state’s farmers in the state itself.In order to ensure supply of certified seeds to farmers, the Chief Minister instructed for setting up at least one seed distribution centre in every district. He also asked the department to prepare a detailed action plan for capturing the market of entire Northeast region along with the local markets.Sonowal instructed the Director of Assam Agribusiness and Rural Transformation Project to set up 100 Farmers’ Producers Company in the state for ramping up agricultural production, collection and ensuring linkage with the national and international markets.Youths must be attracted towards farming to achieve the target of ‘Atma Nirbhar Assam’ while adopting latest scientific innovations in the agricultural practices, he said. Opining that a large pool young people could be engaged in the agricultural sector as each company would employ 500 people, Sonowal said that these companies would be instrumental in streamlining linkage with national and international markets.The Chief Minister also directed the agriculture department to provide a combined harvester to each of the 126 assembly constituencies in the state so that farm mechanization activities can be augmented. Notably, the harvester covers three bigha lands per hour along with helping in threshing of paddy.The director of horticulture department apprised the Chief Minister that the state could a earn a total of Rs 357 crore during the 70 days of lockdown period by exporting vegetables to other states apart from fulfilling own requirement.Directing the department to motivate the progressive farmers showing exemplary performance in horticulture production, Sonowal instructed the agriculture department to tie up with Assam Start-up Incubation Centre to provide better market linkage to the farmers to sell their products. During today’s meeting, the issues of tractor distribution under CMSGUY, Fasal Bima Yojna, providing shallow tube-wells etc were also discussed.Sonowal stated the sector held immense potential to revitalize the state’s economy in the post COVID-19 scenario and economic advisory committee constituted for the purpose had also suggested rapid development of the sector. He also stressed on the need for better coordination among agriculture related departments apart from dedication of state’s farmers to capture world market with Assam’s farm products. | chief minister Sarbananda sonowal directed the assam seeds corporation to produce the seeds required by the state's farmers. he also instructed the department to prepare a detailed action plan for capturing the market of entire Northeast region along with local markets. the department will provide a combined harvester to each of the 126 assembly constituencies in the state so that farm mechanization activities can be augmented. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/nse-bse-bulk-deals-smallcap-stocks-dominate-bulk-deals-on-tuesday/articleshow/77224721.cms | Mumbai: Smallcap stocks such as BC Power Controls and Chemtech Industrial Valves dominated the bulk deals on Tuesday.Among the frontline indices, Sensex rose 1.47 per cent or 558.22 points at 38,492.95 points, while peer Nifty climbed 1.52 per cent or 168.75 points to 11,300.55 points>> Silvertoss Shoppers and Suniyojit Merchants sold 5,884,018 shares and 685,000 shares respectively of BC Power Controls at Rs 4.14 per share, while Ecotek General Trading bought 6,300,000 shares of the company at the same price.>> Vikas Bagla bought 108,000 shares of Chemtech Industrial Valves at Rs 7.50 per share.>> Aryaman Broking sold 80,000 shares of Vaksons Automobiles to Shashank Pravinchandra Doshi at Rs 21 per share.>> Risson Varghese Kuttatti sold 30,337 Refex Industries Rights Entitlements (RE) at Rs 5.77 each.>> Aryaman Capital Markets bought 72,000 shares of Silgo Retail at Rs 38.90 per share, while Pratik Paresh Shah HUF sold 51,000 shares of the company at Rs 38.86 per share.
Route One-led capital infusion to provide IndusInd with buffer
Trade Setup: Nifty looking strong, may head to 11,400-11,450 zone
Ambuja Cements narrows valuation gap with large peers
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Top Trending Stocks: Sensex Today Live | Sensex rose 1.47 per cent or 558.22 points at 38,492.95 points. peer Nifty climbed 1.52 per cent or 168.75 points to 11,300.55 points. Sensex rose 1.47 per cent or 558.22 points at 38,492.95 points. meanwhile, silvertoss shoppers and suniyojit merchants sold 5,884,018 shares and 685,000 shares respectively of BC Power Controls. | Positive |
https://www.financialexpress.com/economy/high-tax-collections-low-share-of-states-shoot-up-centres-revenue-in-october-2020/2144729/ | Higher tax collections and lower devolution of taxes to states pushed the central government’s revenue up in the month of October 2020. The Centre witnessed its first increase in non-debt receipts since the lockdown in October, according to the Centre for Monitoring Indian Economy. At Rs 1.4 lakh crore, receipts rose 46.7 per cent on-year. Both tax and non-tax revenues marked over 50 per cent growth in mobilisation during the month, CMIE added. After contracting sharply by 24.5 per cent in the first six months of the current fiscal year, net tax receipts rose 54.1 per cent on-year to Rs 1.2 lakh crore in October.
The income tax collections have improved since the country stepped into the unlock phase. Income tax collections returned to a growth of 2.6 per cent in September 2020 and further improved to 16.6 per cent in October. This also helped to raise the gross tax collections, which grew by 16.9 per cent on-year to Rs 1.5 lakh crore in October 2020.
While the corporation tax once again witnessed a contraction, its rate of contraction narrowed. At 4.9 per cent contraction, it remained at the lowest registered level in the current fiscal. Among indirect taxes, excise duty collections rose to Rs 1.01 lakh crore in October, touching its highest level since January 2020. This is a reflection of a gradual improvement in imports from the shock of the lockdown, CMIE underlined.
On the other hand, non-tax revenues also reported a handsome growth of 58.4 per cent in October 2020, rising to Rs 23,930 crore from Rs 15,110 crore in the same month of the previous year. This has been attributed to a surge in income earned from economic services and the dividend received from PSUs. Income from economic services, which mainly comprise leases and license fees, increased from Rs 9,700 crore in October 2019 to Rs 12,240 crore in October 2020.
Meanwhile, “despite the recent pick-up in revenue receipts, achieving the annual target is next to impossible for the government,” CMIE said. The Centre managed to garner only 34 per cent of its targeted revenue receipts for 2020-21 by October. Usually, by this time of the year, the government attains nearly half its revenue target for the year. | at Rs 1.4 lakh crore, receipts rose 46.7% on-year. both tax and non-tax revenues marked over 50 per cent growth. income tax collections have improved since the country stepped into the unlock phase. corporation tax saw a contraction but its rate of contraction narrowed. meanwhile, non-tax revenues also reported a handsome growth of 58.4%. | Positive |
https://www.moneycontrol.com/news/business/markets/after-the-bell-sensex-inches-towards-47000-what-should-investors-do-on-friday-6239721.html | Indian markets closed in the green fifth day in a low on December 17 as the bulls pushed the benchmark indices to yet another record high as the S&P BSE Sensex hit 46,992 and the Nifty50 13,740.
The Sensex closed 223 points higher at 46,890, while the Nifty50, ended the day with gains of 58 points at 13,741.
Sectorally, action was seen in finance, capital goods, realty, while metals, oil & gas and utilities saw some profit-taking.
Here is what experts think that investors should do on December 18:
Shrikant Chouhan, Executive Vice President, Equity Technical Research, Kotak Securities
On the day of the weekly expiry of the Nifty and the Bank Nifty options, the market moved to expected levels of 13,770. HDFC twins, Bajaj twins and few pharmaceuticals supported the rally.
The market has formed one more indecisive candlestick at the top of the rally. The market should trade between 13,840 and 13,600 levels. Sell Nifty if it bounces to 13,840-13,850 levels and keep a final stop loss at 13,900.
Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services Limited
The Nifty opened positive and moved to the new lifetime high of 13,773. It the day more than 50 points higher.
The index formed a small bullish candle on the daily scale, making higher high-higher lows on the lower time frame.
It has to hold above 13,600 to witness an up-move towards 13,850,and then towards 14,000, while on the downside, support exists at 13,500.
Ashis Biswas, Head of Technical Research, CapitalVia Global Research Limited
The market witnessed some strong trends and an attempt to overcome the resistance level at around 13,750. Sustaining above 13,750 is the key factor from a short-term perspective. | the Sensex closed 223 points higher at 46,890, while the Nifty50, ended the day with gains of 58 points at 13,741. sectorally, action was seen in finance, capital goods, realty, metals, oil & gas and utilities. the market moved to expected levels of 13,770 on the day of the weekly expiry of the Nifty and the Bank Nifty options. | Positive |
https://www.financialexpress.com/market/wall-st-week-ahead-donald-trump-xi-jinping-trade-armistice-clears-way-for-more-market-gains/1401529/ | One of the darkest clouds hanging over Wall Street somewhat dissipated on the weekend when China and the United States agreed to shelve any new tariffs and reset discussions, at least temporarily halting an increase in their tensions over trade. Investors said the agreement, lasting 90 days, between Chinese President Xi Jinping and U.S. President Donald Trump at the G20 summit spelled a reprieve for stocks and could pave the way for a positive bookend to a volatile trading year.
U.S. stock index futures jumped as trading for the week began late on Sunday, with benchmark S&P 500 e-mini futures up 1.55 percent. Treasury futures were soft, suggesting an appetite for risk-taking could extend last week’s gains in the stock market. The trade tension between Washington and Beijing, along with an uncertain outlook for U.S. rate hikes, have for months dogged prospects for equities. The U.S. pledge not to boost tariffs on $200 billion of Chinese goods could mark the most important deal in years between the world’s top two economies.
“It sets a pretty positive tone (and) stocks should have a decent rally into December,” said Nathan Thooft, Boston-based global head of asset allocation for Manulife Asset Management.
Thooft said he believed the Trump administration was using a threat to raise tariffs to 25 percent on Jan. 1, from 10 percent now as a negotiating tactic. “So when you start to see evidence that there is the ability to come to some type of agreement, that has to be viewed as a positive,” he said.
The stock market logged an official correction after a selloff in October and continued volatility in November that, just over a week ago, had left the benchmark S&P 500 stock index down 10 percent from its all-time high. Markets rebounded last week on comments perceived as dovish from Federal Reserve Chair Jerome Powell, though the S&P was up only 2.4 percent in 2018.
The latest trade standoff began in September when the United States imposed the 10-percent tariffs, prompting China to respond with its own. Ahead of the leaders’ dinner in Argentina, investors had been bracing for a range of outcomes including a worse-case end to talks and more tit-for-tat measures that would have continued to crimp economic and corporate profit growth.
Instead, the Americans and Chinese officially lauded the result. Beijing agreed to buy what the White House called a “very substantial” amount of agriculture, energy, industrial and other products. While the clock ticks on the 90-day tariff reprieve, the two sides will try to work out thorny issues including technology transfer, intellectual property and cyber theft.
“It’s not solved by any stretch of the imagination,” said Thooft. But risk assets and cyclical U.S. sectors like materials and industrials should benefit, he said on Sunday.
An initial jump late on Sunday of nearly 2 percent in Nasdaq 100 e-mini futures suggested that technology companies, many of which were hardest hit in the selloff, could rebound. Gary Shapiro, CEO of the Consumer Technology Association, said he was encouraged by the trade talks and warned that raising tariffs to 25 percent as the White House had threatened “would likely hurt consumers, put several American companies out of business and displace thousands of American workers.”
POWELL TESTIMONY
Energy prices could also rebound on Monday since cooling trade tensions could boost the world economy and spur demand. Oil prices had dropped from a four-year high of about $76 per barrel in early October to just above $50 on Friday. But U.S. crude oil was up 2.7 percent to $52.37 a barrel as of 6:07 p.m. EST (2307 GMT) on Sunday.
Aside from trade policy, Wall Street’s attention has also been trained on Fed policy. Powell was scheduled to testify on Wednesday to a congressional Joint Economic Committee. But the hearing is expected to be postponed to Thursday because major exchanges will be closed on Wednesday in honor of former U.S. President George H.W. Bush, who died on Friday at the age of 94.
Last week, Powell backed the Fed’s gradual tightening but said its policy rate was “just below” a range of estimates of the so-called neutral level that neither stimulates nor cools growth. In response, stocks shot up and largely recovered November’s earlier losses. In the wake of Powell’s speech, Nicholas Colas, co-founder of DataTrek Research, said “what happens in Buenos Aires will determine if stocks post a positive 2018.”
The specter of a global trade war has hovered over the market since March, when Trump announced tariffs on imported steel and aluminum. He also recently said the United States was studying auto tariffs, which could ripple through Europe and Japan, while a pact with Canada and Mexico left some investors heartened about potential progress with China.
Nancy Lazar, economist at research firm Cornerstone Macro, said in a notes that the 90-day tariff delay and China’s “incremental concessions” are good news. “But given the stern U.S. stance, we’re certainly not raising our outlook,” she said of a 2.8-percent growth estimate for the fourth quarter, still comfortably above potential. With U.S. corporate leaders increasingly voicing concerns over rising costs associated with tariffs, Wall Street appeared set on Monday to welcome any development that eases those pressures. | the deal between Xi and the u.s. at the summit spelled a reprieve for stocks. benchmark S&P 500 e-mini futures jumped 1.55 percent. the u.s. pledge not to boost tariffs on $200 billion of Chinese goods could mark the most important deal in years between the world's top two economies. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/sensex-rallies-530-points-on-firm-global-cues-nifty-tops-9400/articleshow/75547028.cms | Agencies Sensex heatmap at the open (Source: bseindia.com)
Sensex jumps 550 points, Nifty tops 9,400; ONGC, Axis Bank gain 3% each OPENING BELL: Sensex jumps 540 points, Nifty tops 9,400; ONGC, Axis Bank gain 3% each
NEW DELHI: The stock market bulls returned to Dalal Street in Tuesday's session as domestic equity indices started off on a strong note, following firm cues from their global peers and as India tried to get back on its feet.Offices and markets in most parts of the country opened as lives started resembling normalcy, however, there were still some issues with transportation and people not following social distancing guidelines.At 9.20 am, BSE flagship Sensex was up 531 points or 1.68 per cent at 32,2246 while NSE benchmark Nifty added 139 points or 1.50 per cent to 9,433. Broader market indices were trading in line with their headline peers as Nifty Smallcap gained 1.41 per cent while Nifty Midcap rose 1.55 per cent. Nifty 500 was up 1.47 per cent. India VIX , the fear gauge of the market, dropped 10.47 per cent to below 40 level, a day after a massive 29 per cent jump.In the 30-share pack Sensex, all constituents were trading with gains. Oil explorer ONGC was the top performer as crude oil prices jumped in the international market. It added 4.96 per cent to Rs 80.35. Axis Bank , M&M and ICICI Bank rose in the range of 2-3 per cent as buyers came back to grab them at relatively cheaper prices.All sectors on NSE traded in the green. Nifty Private Bank was the biggest gainer, up 1.71 per cent while Nifty Metal and Nifty Media added more than 1.5 per cent each.Globally, Asian stocks rose tracking a late Wall Street rally while oil extended gains on expectations fuel demand would begin to pick up.Brent crude rose 4.3 per cent to $28.37 a barrel, up for a sixth straight day, and US crude rose 1.38 per cent to $21.77 a barrel, as countries began loosening coronavirus restrictions and crude supply cuts took effect.In reduced trade, with China, Japan and South Korea on holiday, Australia's ASX 200 rose 1.26 per cent and Hong Kong's Hang Seng climbed 0.66 per cent. U.S. stock futures rose 0.75 per cent. MSCI 's broadest index of Asia-Pacific shares outside Japan rose 0.56 per cent. | ONGC was the top performer as crude oil prices jumped in the international market. ONGC was the top performer as buyers came back to grab them at relatively cheaper prices. ONGC was the top performer as crude oil prices jumped in the market. ONGC was the top performer as oil prices jumped in the international market. | Positive |
https://www.moneycontrol.com/news/business/mercedes-benz-offers-customised-finance-options-to-lure-customers-back-5311461.html | Mercedes Benz India on Monday launched flexible financial solutions with an aim to instill customer confidence and create a positive sentiment in the market currently reeling under the impact of slowdown and coronavirus-induced lockdown.
Under its 'Wishbox 2.0', the German luxury carmaker is offering customised financial solutions including no EMI for first three months, lesser EMIs for the first six months with regular EMIs starting from 7th month of purchase and 10-year extended loan.
"As the markets across the country start reopening and operations begin in a graded manner, we are introducing ‘Wishbox 2.0', a host of customised and highly flexible financial solutions, aimed at reinstalling customer confidence and empowering them to buy their Mercedes," Mercedes-Benz India Managing Director and CEO Martin Schwenk said in a statement.
He further said, "Wishbox 2.0 is highly flexible and we are confident will instill customer confidence by offsetting some of their financial commitments. These smart financing solutions are one-of-its kind and are our own way of supporting our customers' investments and addressing the prevalent market challenges."
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
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Under ‘Wishbox 2.0' a customer opting for a standard loan can avail of an EMI free period for the first three months and monthly installments will only commence after three months of the 3, 4, 5 years loan as customised.
Also, the company is providing ‘Step-Up 2020' option, under which a customer can pay small sum as EMIs for the first six months of the contract and regular EMIs starting from the seventh month.
Mercedes-Benz India also said if is offering for the first time ever a 10-year loan tenure with the customer also having the option to opt for a guaranteed buy back after five years.
Commenting on business resumption following relaxation of lockdown guidelines, Schwenk said, "We are swiftly getting back to business with gradual re-opening of our dealerships across markets following all the social distancing protocols and adhering to all safety and sanitisation measures. We are confident, we will be able to operationalise the remaining outlets following the local authorities' directives, soon.
Follow our full coverage of the coronavirus pandemic here. | Mercedes Benz India on Monday launched flexible financial solutions. the firm is offering customised financial solutions including no EMI for first three months, lesser EMIs for the first six months and regular EMIs starting from 7th month of purchase. the move is aimed at instilling customer confidence and creating a positive sentiment in the market currently reeling under the impact of slowdown and coronavirus-induced lockdown. | Positive |
https://www.moneycontrol.com/news/business/markets/an-evening-walk-down-d-st-nifty-makes-history-in-may-series-hits-12k-index-ends-2-6-higher-4045031.html | live bse live
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The Nifty50 created history during May series when it surpassed Mount 12K to hit a fresh record high of 12,041 on May 23 after National Democratic Alliance (NDA) secured a majority and paved way to the second term for Prime Minister Narendra Modi.
The index rose 2.6 percent in May series to close at 11,945, a fresh record closing high. The S&P BSE Sensex rallied 2.8 percent while NiftyBank rallied 6.7 percent in the same period.
The final tally on D-St for May 30: the Nifty50 rose 84 points to close at 11,945 while the S&P BSE Sensex rallied 329 points to end at 39,831.
Strong buying was seen in power, telecom, energy, finance, and IT stocks while profit-taking was seen in automobiles, metals, realty and consumer discretionary stocks.
The broader market underperformed benchmark indices as the S&P BSE Midcap index closed 0.4 percent higher while the S&P BSE Smallcap index was up 0.2 percent.
More than 50 stocks hit a fresh 52-week high on the BSE including Info Edge, Vinati Organics, Siemens, JustDial, IGL, V-Guard, IOL Chemicals and Birla Cotsyn among others.
Most experts feel that the optimism round political front is pushing markets higher but investors should tread with caution as any bad news could derail the rally amid high valuations.
“Indian bourses seem to be in a race with no looking back. Choppiness on D-Street has increased as Nifty aims to reach its previous highs by crossing 12,000. All eyes are on the Monetary policy next week and the implementation of strong reforms by the newly elected government,” Umesh Mehta, Head of Research, Samco Securities told Moneycontrol.
“The Street is pricing in the Modi government’s efforts to improve the economy and hence the markets are soaring higher. However, this frenzy will be short-lived as the indices are currently trading at very high multiples and any adverse news on the local or global front can lead to severe correction in the market,” he said.
Top Sensex gainers include Bajaj Finance (up 2 percent), Bharti Airtel (up 2.3 percent), and NTPC (up 3.4 percent).
Top Sensex losers: Sun Pharma (down 2.3 percent), M&M (down 1.6 percent), and IndusInd Bank (down 1.3 percent).
Stocks in news:
Most global brokerage houses slashed price target for M&M post Q4 show. CLSA downgraded the stock and cut target price by 19 percent on likely underperformance. M&M closed 1.6 percent lower and was also one of the top Sensex losers.
West Coast Paper gained 6 percent after the company decided to acquire a stake in International Paper APPM.
Shares of Tata Teleservices (Maharashtra) rallied more than 19 percent buoyed by its performance in the quarter ended March 2019.
Shares of Manpasand Beverages plummeted 10 percent after the officials of the company arrested for GST fraud were reportedly denied bail.
Shares of Gujarat Narmada Valley Fertilizers shed more than 6 percent after the company reported a 71.6 percent decline in profit for the quarter ended March 2019.
Global update:
European markets trade higher as STOXX 600 registered its first gain in the last three days.
Asian markets ended lower on the back of rising trade tensions between the US and China. Nikkei shed 0.29 percent at 20,942.53, Shanghai Composite was down 0.31 percent at 2,905.81 while Kospi added 0.77 percent at 2,038.80. | the index rose 2.6 percent in may series to close at 11,945. the S&P BSE Sensex rallied 2.8 percent while NiftyBank rallied 6.7 percent in the same period. most experts feel that the optimism round political front is pushing markets higher but investors should tread with caution. a s&p index closes 0.4 percent higher while the S&P BSE Smallcap index is up 0.2 percent. | Positive |
https://www.financialexpress.com/industry/sify-eyes-cloud-network-access-and-e-learning-for-growth-post-lockdown/1950680/ | Chennai-headquartered Sify Technologies (Sify) — touted to be the largest ICT service provider, system integrator and all-in-one network solutions company — has said cloud services, network access and security services, and e-learning would be the prime growth areas for the firm after the lockdown. Customers will look for flexible and agile technology and contracts. Service providers with consumption-based business models will get more attention from customers compared to others, it said.
The company is currently addressing the upgrade and downgrade requirements of customers, based on demand. It is remotely managing mission critical infrastructure of customers who are serving the core industries and consumers. The current situation has also stimulated conversations with customers on the need for scalable, flexible IT infrastructure that can be consumed on demand, said Kamal Nath, CEO, Sify.
After releasing Sify’s annual earnings performance, Nath said the current scenario under lockdown had created challenges in the short-term and opportunities in the mid- and long-term for the company. “We are seeing the cloud sceptical customers showing enthusiasm on cloud adoption to ease their capex cost and cash flow. Organisations are reviewing how to provide secured and productive work from home deployment. As a digital ICT service provider, we see this as an opportunity to further boost utilisation of our investments and enhancement of our services revenue,” he said.
For some time now, Sify has been increasing the level of automation across its entire suite of services. During the lockdown period, the company has been able to perform remote commissioning and maintain high service levels without any major impact.
Raju Vegesna, chairman, Sify, said, “Every adversity presents an opportunity to rethink the way we do business. I am incredibly proud of my team who are continuing to rise to the challenges faced by our clients every day. The biggest lesson for the market from this lockdown is that there is no escaping the digital economy of tomorrow. Sify’s future is in enabling that for our clients.”
Sify reported revenue of Rs 2295 crore for financial year 2019-20 as compared to Rs 2155 crore in the previous financial year. While ebitda for the year stood at Rs 408 crore. It registered a net profit of Rs 71crore against Rs 107 crore.
CFO M P Vijay Kumar said, “We had a reasonably good year 2019-20. The ebitda growth has been healthy, while we continue to spend for the future — both in people and tools — to increase our digital transformation service capabilities. The net profit is lower as the company is now subject to full taxes as past tax benefits have expired. As global trade shrinks substantially and overall demand and supply chain recovery is expected to take time, we are preparing the organisation for new contracts to be slow to conclude as some of our clients are likely to take time to regain their momentum in the market. We continue to carefully manage our costs, while ensuring that services to customers and their experience remain the best.”
He said the company was committed to its data centre, cloud and network centric expansion projects, and will exercise due caution in terms of timing and cost structure of these projects. Sify has also expanded to the US, with headquarters in the heart of California’s Silicon Valley. The company partners other major network operators to deliver global network solutions and has presence in more than 1600 cities in India, North America, the UK and Singapore. | customers will look for flexible and agile technology and contracts. cloud services, network access and security services, and e-learning would be prime growth areas for the firm after the lockdown. company is currently addressing the upgrade and downgrade requirements of customers, based on demand. e-learning will be the company's next big business. adversity presents an opportunity to rethink the way we do business. | Positive |
https://www.financialexpress.com/industry/sme/msme-other-govt-bets-more-on-small-businesses-for-defence-production-number-of-msmes-increases-21-per-cent/1890185/ | Number of MSMEs in the domestic defence production sector till the second quarter of the financial year 2020 increased 21 per cent from the entire FY19, according to the data shared by the MSME Minister Nitin Gadkari in Rajya Sabha recently. The total number of MSME vendors of Defence Public Sector Enterprises/Ordnance Factory Board stood at 15,089 in FY17, which declined to 7,591 MSME vendors during FY18 followed by a marginal increase to 8,643 vendors during FY19. However, it increased further to 10,506 till Q2 FY20. The increase in MSMEs share in India’s defence manufacturing space gains significance amid the government’s focus on leveraging small businesses and startups in the defence sector.
Subhash Chandra, Secretary, Department of Defence Production (DDP), Ministry of Defence speaking at a FICCI event last year stressed for the integration of MSMEs and startups into the defence manufacturing ecosystem. “Industry concerns have also been taken into consideration and demystifying of work processes will come only through interactions. The three-armed forces also need to open their doors for discussions with the industry,” he said. Last month, the government had announced a challenge for startups seeking their solutions to help counter-terrorism unit National Security Guard (NSG). The number of startups, till December 4, 2019, in the aeronautics, aerospace, and defence sector stood at 194 registered with Startup India, Defence MoS Shripad Naik had informed in Lok Sabha.
Also read: Parliamentary Panel seeks priority clearance of MSME dues during resolution process; suggests this step
Moreover, In November last year, Defence Minister Rajnath Singh, in order to help India achieve its goal of indigenization and self-reliance in the defence sector with the contribution of startups and MSMEs, had announced the third phase of Defence India Startup Challenge (DISC) under its Innovations for Defence Excellence (iDEX) — programme to boost innovation in the defence sector. “Looking at the talent India possesses, I am pretty confident that we can become $10-trillion economy in the next 10-15 years,” Rajnath Singh had said at an event. Through iDEX and startup challenge, the government is looking to invest in 250 startups and “achieve 50 tangible innovations in the next five years” Chandra had said. | number of MSMEs in defence production sector increased 21 per cent from FY19. total number of MSME vendors of defence public sector enterprises/Ordnance Factory Board stood at 15,089 in FY17. increase in MSMEs share in india’s defence manufacturing space gains significance amid government’s focus on leveraging small businesses and startups in the defence sector. last month, the government had announced a challenge for startups seeking their solutions to help counter-terrorism unit National Security Guard (NSG). | Positive |
https://www.moneycontrol.com/news/business/sbi-relaunches-aadhaar-based-online-insta-saving-bank-account-through-yono-5395671.html | live bse live
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Country’s largest lender State Bank of India has re-launched ‘SBI Insta Saving Bank Account’ an Aadhaar-based instant digital savings account, for customers who would like to open an account online through bank’s integrated banking and lifestyle platform – YONO. This new service aims to provide convenient digital banking services.
This new service will offer complete paperless and instant digital savings account opening experience with just PAN and Aadhaar number. The SBI Insta Saving Bank Account holders can have 24x7 banking access. SBI will also issue basic personalized RuPay ATM-cum-debit card to all the new account holders of Insta Saving Bank Account.
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Customers just need to download YONO app, enter their PAN and Aadhaar details, submit OTP, and fill other relevant details to open the SBI Insta Saving Bank Account. The nomination facility is available for SBI Insta Saving Bank Account holders along with SMS Alerts and SBI Quick Missed call service. Once the process is complete, the account holder will get his/her account activated instantly and can start transacting immediately. Customers will have the flexibility to upgrade to full KYC by visiting their nearest SBI branch within one year’s time.
SBI chairman Rajnish Kumar said, “We are glad to re-launch SBI Insta Saving Bank Account. This account has all the features that would provide our potential customers a convenient, hassle-free and paperless banking experience without visiting the bank branch. In this digital age, we constantly aim to offer our customers the best digital banking experience backed up with the technology which would give them access to banking services anytime and anywhere. This product would be beneficial to customers in this prevailing COVID 19 situation, who can open Savings Account at the comfort of their homes, without visiting a Bank Branch”.
YONO SBI is to offer its customers a gamut of banking and lifestyle services at their doorsteps with just the click of a button. YONO SBI for the past two years is accepted greatly by the customers. The Platform has now reached global markets with YONO Global in UK & Mauritius. YONO has also crossed the landmark of 51 million downloads and 23 million registered users in a little over two years.
It has partnered with more than 100 e-Commerce players across 20 plus categories. SBI through YONO has also come up with various initiatives which include YONO Cash, PAPL, YONO Krishi and the likes, catering to all categories of customers.
Follow our full coverage of the coronavirus pandemic here. | SBI Insta Saving Bank Account' is an instant digital savings account. the service will offer complete paperless and instant digital savings account opening experience with just PAN and Aadhaar number. customers will have the flexibility to upgrade to full KYC by visiting their nearest SBI branch within one year's time.'sBI Insta Saving Bank Account' is available for customers who would like to open an account online through bank's integrated banking and lifestyle platform - YONO. | Positive |
https://www.moneycontrol.com/news/business/markets/investors-should-brace-for-about-10-correction-in-sensex-nifty-edelweiss-2920721.html | Mumbai: New logo of National Stock Exchange (NSE) displayed outside the headquarter, in Mumbai on Thursday, August 16, 2018. (PTI Photo/Shashank Parade)(PTI8_16_2018_000101B)
The GDP data for the June quarter was above analyst expectations but earnings growth for companies has been patchy and inconsistent. Indian markets, which are trading at rich valuations, are facing increased odds of a 10 percent kind of correction, Edelweiss Investment Research has said in a report.
A pick up in earnings can overshadow the other negatives and support markets. But, downgrades cycle in FY19 is just like it was in prior years which does not go well for the markets as it increases the chance of markets crumbling under their own weight.
The brokerage firm highlighted that synchronous global growth of CY16 and CY17 is now behind us. It looks fractured and is plagued with risks.
The US has entered a late cycle indicating peak growth and earnings dynamics. An intensifying dollar liquidity vortex is squeezing emerging markets one after the other and may create more problems if trade wars escalate.
“At nearly 20 times 1-year forward earnings, Nifty index (11,600) is trading at rich valuations creating a poor margin of safety. We expect headline indices to face increasing odds of a deep correction of 10% or more or be range bound at best,” said the report.
Commenting on the midcaps, Edelweiss said that valuations have been soaring higher than the large-cap valuations since the start of FY16, and the Nifty to Nifty midcap P/E (TTM) ratio has been falling below its median ever since.
GDP data for June
Edelweiss said that Indian economy has been on a path of recovery over the last four quarters. There has been a broad-based improvement in growth suggesting tapering of GST and demonetisation disruptions.
It observed three clear trends:
1) The domestic economy seems to have recovered. Further acceleration in growth would require aggregate demand to pick up on a sustainable basis.
Government expenditure, which was a key driver of recovery, is now mean reverting. Private sector activity will now dictate the trend strength or lack thereof.
2. The macroeconomic landscape remains challenging and is deteriorating. Many indicators like CAD, fiscal deficit, rising bond yields, stagnant indirect tax collections, foreign flows are still worsening along with a challenging global economy.
This would keep the margin of safety low and these macro indicators are importantly monitorable.
3. Earnings growth has been a big challenge for domestic markets. Over the last two years, earnings growth for stocks has been patchy and inconsistent.
Q1FY19 was the first quarter where market-wide earnings growth (ex-PSU banks) clocked a growth of 20 percent.
(The above report is compiled from inputs from Edelweiss Investment Research report) | the rupee rises to a record high in the second quarter of 2018. the rupee rises to a record high in the second quarter of 2018. the rupee rises to a record high in the third quarter of 2018. the rupee rises to a record high in the third quarter of 2018. a chinese government is stepping up its efforts to curb inflation. | Positive |
https://www.financialexpress.com/economy/cabinet-approves-rs-3500-cr-aid-for-sugar-exports-in-2020-21/2151386/ | The Cabinet on Wednesday approved an assistance of Rs 3,500 crore for exports of six million tonne of sugar in the current marketing year through September 2021 to cut a glut in the domestic market and help cash-strapped mills clear dues to cane farmers.
This subsidy amount, however, will be directly credited into the accounts of cane farmers against outstanding dues of mills. It also cleared an allocation of Rs 5,361 crore towards subsidy for the last marketing year (2019-20), when it had announced an export assistance of Rs 10,448 per tonne.
Cane arrears carried forward from the last marketing year stood at a record Rs 3,500 crore. The Cabinet decision also coincides with the agitation led by farmers in the national Capital against three farm Bills of the Centre.
The latest move will catalyse exports of `18,000 crore (including the subsidy amount) in the 2020-21 marketing year. It will benefit about five crore farmers and their dependents, and five lakh workers employed in the sugar sector, information and broadcasting minister Prakash Javadekar said after the Cabinet meeting.
This subsidy aims to cover sugar mills’ marketing costs, including handling, upgrading and other processing charges, costs of international and internal transport, and freight charges on exports, subject to the cap of six million tonne, in the current marketing year.
Against their mandatory target of six million tonne set for 2019-20, mills had shipped out 5.7 million tonne. India, the world’s second-largest sugar producer, was forced to extend export subsidies in the past two years to enable mills to trim record inventory, caused by successive years of surplus production, and clear cane dues to farmers.
Hailing the Cabinet decisions, Abinash Verma, director general of the Indian Sugar Mills’ Association, said it will help reduce the country’s sugar stocks to 9.6 million tonne by October 1, 2021, from 10.7 million tonne in the beginning of this marketing year. This will also boost the sugar realisation of mills.
“Even though two-and-a-half months of the current season is over, considering that several large importing countries have been enquiring about Indian sugar and also considering that the drop in sugar production from Thailand gives an opportunity to India to export to traditional markets like Indonesia, Malaysia etc., our sugar industry should be able to fulfill the target of 6 million tonne of exports in 2020-21,” Verma said. | cabinet approves aid for exports of six million tonne of sugar in current marketing year through September 2021. cane arrears carried forward from last marketing year stood at a record Rs 3,500 crore. move will catalyse exports of 18,000 crore (including the subsidy amount) in the 2020-21 marketing year. it will benefit about five crore farmers and their dependents, and five lakh workers employed in the sugar sector. | Positive |
https://economictimes.indiatimes.com/markets/commodities/news/gold-extends-gains-on-hopes-of-us-stimulus-package/articleshow/74802267.cms | Gold rose for a third straight session on Wednesday, hitting its highest in about two weeks, as positive rhetoric from US lawmakers regarding a stimulus bill to cushion the economic damage from the coronavirus outbreak lifted investor sentiment.Spot gold was up 0.9 per cent at $1,624.18 per ounce by 0038 GMT, after rising as much as 1.6 per cent to $1,635.79 earlier in the day - its highest since March 12. The metal jumped more than 3 per cent in the previous session.US gold futures climbed 1.6 per cent to $1,687.30.Senior US Democrats and Republicans said on Tuesday they were close to a deal on a $2 trillion stimulus package to limit the pandemic's economic toll.Asian shares extended their rally in the wake of Wall Street's big gains as US Congress appeared closer to passing the stimulus package.The United States could become the global epicentre of the virus, the World Health Organization said, as India announced a full 24-hour, nationwide lockdown in the world's second-most populous country.Fatalities in Italy have surged in the last 24 hours, the Civil Protection Agency said on Tuesday, dashing hopes the epidemic in the world's worst-hit country was easing after more encouraging numbers in the previous two days.The virus had infected more than 395,500 people across the world, as of Tuesday.Business activity collapsed from Australia, Japan and Western Europe to the United States at a record pace in March as measures to contain the epidemic hammer the world economy, cementing economists' views of a deep global recession.London spot gold prices were far below US gold futures on Tuesday in a sign the market is worried air travel restrictions and precious metal refinery closures will hamper shipments of bullion to the United States to meet contractual requirements.SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 1.3 per cent to 935.98 tonnes on Tuesday.Palladium climbed 1.3 per cent to $1,958 an ounce and platinum gained 3 per cent to $729.49. Both the metals rose more than 10 per cent in the previous session as major producer South Africa was locked down due to the virus. Silver rose 1.6 per cent to $14.49 per ounce. | spot gold was up 0.9 per cent at $1,624.18 per ounce by 0038 GMT. the metal jumped more than 3% in the previous session. US gold futures climbed 1.6 per cent to $1,687.30. the u.s. could become the global epicentre of the virus, the world health organisation said. | Positive |
https://www.financialexpress.com/lifestyle/health/coronavirus-pandemic-the-ambiguous-destiny-of-indias-returning-migrants/1957889/ | By Juhi Bansal
India stands as the leading country of origin of international migrants in 2019 as per the United Nations with 17.5 million recorded migrants from India settled across the globe. The Ministry of External Affairs estimates that more than 32 million Indians live abroad. This also makes India the world’s top recipient of remittances, having an estimated inflow of USD 83.1 billion in 2019 according to the World Bank. A large part of these remittances come from the Gulf Cooperation Council (GCC) countries of the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, Bahrain and Oman.
According to a bulletin by the Reserve Bank of India (RBI), 90% of overseas Indians are employed in the Gulf region and South East Asia, and more than 50% of total remittances received in 2016-17 came from the GCC countries.
Migration of Indian workers to the Gulf has increased exponentially since the ‘oil-boom’ in the 1970s, having a significant impact on the economies of the host countries while also providing major developmental contributions to their places of origin. Remittances from this ‘Indian diaspora have become a crucial source of India’s foreign exchange reserves while also serving as the backbone to the economies of high-migrant producing states. Notably, a majority of these migrants are semi-, low- or unskilled workers whose contracts are for short periods of employment, at the end of which they must return home.
Usually, most of these blue-collar workers manage to secure new contracts and return back to the Gulf with gainful employment, continuing the cycle of remittances. However, the COVID-19 pandemic has brought in an unprecedented situation resulting in the suspension of movement of migrants between the India-Gulf corridor, leaving millions of migrants stranded in their host countries.
The Government of India has now decided to facilitate the repatriation of Indian nationals abroad in a phased manner if they present compelling reasons. The first phase will have flights carrying back Indians from the six GCC countries, Bangladesh, Malaysia, Singapore, Philippines, USA and UK, with the next phase including countries like Afghanistan and Sri Lanka. According to recent reports, more than 300,000 Indians have registered to return from the Gulf region alone. Preliminary data on the registered persons shows that 60% of those returning from the Gulf are from Kerala. According to the Department of Non-Resident Keralites Affairs (NORKA Roots), over 61,000 of these returnees have cited job losses as the reason for their return.
This return migration poses challenges on many fronts. The first challenge is on the healthcare front, with the returnees bringing in the risk of a fresh wave of infections. This would hugely exacerbate problems in this sector, given the shortage of healthcare workers, lack of sufficient protective equipment, poor testing rates, and a weak disease surveillance system. The second challenge is economic. There is an urgent need to secure remittance-dependent economies that are already struggling under the pressure of the national lockdown, which while intended to avert one humanitarian crisis has inadvertently induced another. The third and most significant challenge is human.
The returning migrants, as well as their dependents, need to be ensured access to entitlements like healthcare, food and shelter, and sufficient livelihood opportunities in the future, given that a significant number face job losses. There is also the issue that the repatriation policy is on a pay-per-use basis, which excludes the financially vulnerable who cannot afford the airfare. This group faces heightened health and livelihood risks as most of them are irregular residents without access to healthcare facilities and live in conditions where social distancing is impossible, leaving them more exposed to the virus, exploitation and destitution.
These challenges will have an immediate impact on the highest migrant producing and remittance-receiving states. While Kerala, Tamil Nadu and Andhra Pradesh are the top three migrant producing states, the RBI analysis of inward remittances show that 58.7% of the total remittances in 2016-17 were channelled to the four states of Kerala, Maharashtra, Karnataka and Tamil Nadu. These state governments are now rushing to secure enough facilities to quarantine the incoming migrants, while facing the double whammy of deficit in state income as well the burden of providing for returning migrants, who may witness a sharp rise in unemployment.Where last year the World Bank had tracked remittances as exceeding Foreign Direct Investment (FDI) to become the largest source of external financing in developing countries, the prediction is for remittances to decline by 20% this year, largely due to fall in wages and employment of migrant workers in host countries due to the pandemic. To put this into perspective, an estimated Rs 850 billion was received via remittances as per the Kerala Migration Survey by the Centre for Development Studies (CDS) in 2018, which was equivalent to 25% of the state’s income that year. Professor S Irudaya Rajan from CDS estimates that Kerala will lose approximately Rs 127.5 billion, or 15% of its annual remittances, this year.
The future for these migrants and their home states is uncertain, as the Gulf countries have already imposed stringent measures to curb the pandemic and reports state that they are considering a “recalibration of reliance on foreign workers” and will likely accelerate programmes to “nationalise” jobs. In this context, returning to business-as-usual after the lockdowns lift seems improbable, and the prospect of emigrated workers reclaiming their previous jobs is low, much less a new wave of aspiring job seekers gaining employment in the GCC labour markets. Moreover, returning migrants who have lost their jobs will add to the unemployment rate in India.
With Prime Minister Modi announcing a Rs 20 trillion stimulus package, amounting to 10% of India’s GDP, the policy focus has been firmly directed towards an inclusive economic recovery that keeps migrants centre-stage. This is a welcome step as it is critical for the government to strengthen social protection measures at this juncture. Providing proactively for the huge influx of migrants is key to ensure a healthy recovery going forward.
(The author is a Project Associate at The Energy and Resources Institute (TERI), New Delhi. Views expressed are personal.) | India is the world's top recipient of remittances with an estimated inflow of USD 83.1 billion in 2019 according to the world bank. 90% of overseas Indians are employed in the Gulf region and south east Asia. remittances from the 'india diaspora' have become a crucial source of India's foreign exchange reserves. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/un-economic-experts-hail-indias-impressive-stimulus-package-to-revive-economy-hit-by-coronavirus/articleshow/75734085.cms | UNITED NATIONS: Top UN economic experts have hailed as “impressive” the Rs 20 lakh crore stimulus package, the largest so far among developing countries, announced by India to revive the country's economy, which has been severely hit by the coronavirus-triggered lockdown Prime Minister Narendra Modi on Tuesday announced massive new financial incentives on top of the previously announced packages for a combined stimulus of Rs 20 lakh crore (USD 260 billion).While launching the World Economic Situation and Prospect (WESP) report update on Wednesday, Chief of the Global Economic Monitoring Branch Hamid Rashid told reporters in response to a question that the stimulus package announced by the Indian government on Tuesday “is a very welcome development.”He said the Rs 20 lakh crore package, which is 10 per cent of India's GDP is the “largest so far in the developing countries” because most developing countries have been rolling out stimulus packages that are between 0.5 per cent and 1 per cent of the GDP.“India's stimulus packages are very large. And also India has the domestic financial market and the large capacity to implement that large stimulus package,” he said, adding that impact of the package would depend on the design of the stimulus.The mega Rs 20 lakh crore stimulus package includes previously announced measures to save the lockdown-battered economy, and focuses on tax breaks for small businesses as well as incentives for domestic manufacturing.The combined package works out to roughly 10 per cent of the GDP, making it among the most substantial in the world after the financial packages announced by the US, which is 13 per cent of its GDP, and by Japan, which is over 21 per cent of its GDP.Associate Economic Affairs Officer, Economic Analysis and Policy Division, Department of Economic and Social Affairs (EAPD/UN DESA) Julian Slotman told PTI in an interview that the size of India's stimulus package is “impressive” and “seems to be of a magnitude that will help to reassure markets and to boost domestic consumption. But at the same time when people are simply not able to spend, you cannot expect the economic growth to suddenly magically re-appear.”Lauding the Indian government for implementing a strict lockdown while the number of COVID19 cases was relatively low, he said at some point it will be inevitable to gradually ease the restrictions but warned that that could result in infections increasing in the country.“Fortunately in India, the central government acted very decisively in implementing the national lockdown" when the number of virus cases was relatively low and "it seems to have slowed the spread of the disease somewhat,” he said.“The decisive containment measures are absolutely critically necessary and a strong lockdown is critical in India,” he said, adding that the duration of the lockdown has to also be economically feasible.“It is putting tremendous pressure on the Indian economy and of course disproportionately hurting the people that are the most vulnerable and poor.”He said that in India, priority must be given to reduce uncertainty first so that people can eventually go out and spend again.He urged the Indian government to exercise maximum caution in easing the lockdown, saying the country should “not hasten anything unnecessarily. There are ways to gradually lift restrictions,” he said.He added that with a large informal sector in India, the lockdown has disproportionately affected women and migrant workers.Meanwhile, the UN on Wednesday slashed India's projected GDP growth rate to 1.2 per cent in 2020-21 as the COVID19 pandemic ravages the global economy.In the WESP report update, the UN DESA said that global GDP is forecast to contract sharply by 3.2 per cent as the COVID-19 pandemic paralyses the world, sharply restricting economic activities, increasing uncertainties and unleashing a recession unseen since the Great Depression."Cumulatively, the world economy is expected to lose nearly USD 8.5 trillion in output in 2020 and 2021, nearly wiping out the cumulative output gains of the previous four years,” the report said.India's economic growth is forecast to slow to 1.2 per cent in the current fiscal, a further deterioration from the already slowed growth of 4.1 per cent in 2019. India, which grew at 6.8 per cent in fiscal year 2018, is forecast to recover and clock a 5.5 per cent growth rate in 2021.The Economic Survey, released a day before Finance Minister Nirmala Sitharaman presented the Union Budget for 2020-21 on February 1, had projected a GDP growth of 6-6.5 per cent, up from 5 per cent estimate for 2019-20.“The national lockdown in India, for example, is expected to depress economic growth to just 1.2 per cent, much lower than the already disappointing growth in 2019,” the report said.Despite the considerably slowed growth rate of 1.2 per cent, India is still the second fastest-growing major economy in the world after China.According to estimates in the report, India and China are the only two economies in the world that are not projected to shrink in 2020 even though their growth rates slow down considerably. While India could clock a 1.2 per cent GDP growth, China is estimated to record a 1.7 per cent growth rate.All other economies in the world, including the US (-4.8 per cent), Japan (-4.2 per cent), European Union (-5.5 per cent) and the United Kingdom (-5.4 per cent) are projected to shrink this year. | the mega Rs 20 lakh crore stimulus package is among the most substantial in the world after the financial packages announced by the US and Japan. the combined package works out to roughly 10 per cent of the GDP. the package includes previously announced measures to save the lockdown-battered economy. the package includes tax breaks for small businesses as well as incentives for domestic manufacturing. the package is among the most substantial in the world after the financial packages announced by the us and by Japan. | Positive |
https://economictimes.indiatimes.com/mf/mf-news/icici-pru-mutual-fund-launches-bharat-consumption-scheme/articleshow/68576543.cms | ICICI Prudential AMC announced launched the ICICI Prudential Bharat Consumption Scheme. The Scheme aims to benefit from the Indian consumption story, considered as one of the fastest growing consumption markets globally. The benchmark for the Scheme is Nifty India Consumption Index and will be managed by Rajat Chandak and Dharmesh Kakkad. The overseas investments of the scheme will be managed by Priyanka Khandelwal."Globally, it has been observed that the moment a country’s per capita GDP crosses $2,000*, there is a disproportionate rise in discretionary spending and India is poised to cross this milestone in 2019-20,” Nimesh Shah , MD & CEO, ICICI Prudential AMC, said on the launch of the scheme. “With the largest millennial population globally, India offers a growth potential for consumer markets and retailers as millennial differ from previous generations by their lifestyle choices, consumption pattern, significant need for convenience and brand preferences,” he added.A press release from the fund house said that the primary drivers for consumption are likely to be 1) Rising income and expansion of the middle-income segment 2) Diverse population within India 3) Increasing Urbanisation and 4) Improved connectivity owing to technology advancement.With the rising aspirations of the millennial which goes with the motto of eat well (FMCG, Retail, Quick service restaurants, Healthcare), feel well (Consumer Durables, Telecom, Media & entertainment, Auto) and live well (Consumer Electricals, Paints, Tourism), consumption as a theme is likely to see exponentialgrowth in the times ahead. | the scheme aims to benefit from the Indian consumption story. the benchmark for the Scheme is Nifty India Consumption Index. the overseas investments of the scheme will be managed by Priyanka Khandelwal. millennials are likely to be the primary drivers for consumption. the scheme is expected to be launched in november. a spokesman for ICICI Prudential said the scheme is a'very exciting' scheme. | Positive |
https://www.businesstoday.in/markets/company-stock/coronavirus-crisis-helps-reliance-jio-facebook-mukesh-ambani-reliance-industries/story/405903.html | From its Silicon Valley-like campus near Mumbai, Indian billionaire Mukesh Ambani's Jio telecom carrier is emerging as a winner from changes in the way Indian consumers plug into a digital economy made more urgent by the coronavirus pandemic.
For Indian shoppers who prefer to order online, it is launching a grocery ordering service with Facebook Inc's popular WhatsApp messaging. For Bollywood fans who would prefer to avoid a crowded theater, it is readying same-day-release on the Jio platform.
Those plans had been in the making for months, but the pandemic has given them a shot in the arm. India's 10-week lockdown has also led to a surge in demand for data, boosting Jio's phone and broadband offerings.
And, over the past six weeks, the digital business of Ambani's Reliance Industries Ltd, known as Jio Platforms, raised a striking $10 billion from global investors.
The investments, including $5.7 billion from Facebook and money from private equity firms Silver Lake, Vista Equity Partners, General Atlantic and KKR & Co Inc, value Jio Platforms, where Reliance last year announced it was consolidating its digital offerings, at roughly $65 billion.
They also put Jio on track toward a goal Ambani described last year: an eventual listing that would mark a milestone for his effort to unite the digital offerings of his sprawling conglomerate, from set-top boxes to e-commerce and home automation.
Reliance declined to make Ambani, Asia's richest man, available for interview or respond to a detailed list of questions.
But interviews with a dozen people familiar with the company's development efforts show how Reliance has pushed aggressive pricing for a one-stop digital commerce platform that incorporates features modeled on the American tech heavyweights it sees as rivals.
When Jio set out to launch a set-top box, it tasked a team with analysing - and in some cases replicating - some 100 features of an Apple TV set-top box last year, according to a person close to the project and internal Jio documents seen by Reuters.
"Presentation and listing of menu items should be similar to Apple TV," one of the documents says, assigning the task a "Priority 1" rating.
One document compares the products' features, like average weight. Another includes instructions like "Matching the background theme of Launcher (home screen) to that of Apple TV."
Jio's set-top box comes included in its broadband plans, with the cheapest annual deal costing around $110, whereas Apple TV 4K is selling for around $210 to $230 on Indian e-commerce sites.
Apple Inc did not respond to requests for comment.
Jio also analysed Amazon's Alexa voice assistant with the aim of coming up with its own offering, according to one person with knowledge of Jio's strategy. "They wanted to say: 'Hey Jio, can you switch on the lights?'," said the person. Reuters could not determine the status of the project. Amazon declined comment.
In other areas, Ambani has shown a willingness to bet big on emerging technology. In India, Jio was an early adopter of voice-over-LTE, which is more efficient than traditional networks. The company expects that to give it an edge in rolling out 5G services.
"Few companies have the potential to transform a country's digital ecosystem in the way that Jio Platforms is doing in India," said KKR's co-founder Henry Kravis in announcing his investment.
In partnership with Facebook's WhatsApp, Reliance has launched a new service that allows consumers to order from their local grocery stores at a time when many Indian consumers, like shoppers elsewhere, are trying to minimize trips to stores. The service was rolled out in April in three areas of Greater Mumbai.
"Reliance wants to be a global technology powerhouse," said Rahul Malhotra, an analyst with Bernstein. "With the Facebook partnership, they will build the WeChat of India," he added, referring to Tencent Holdings' messaging, payments and social media app that is ubiquitous in China.
TOTAL RELIANCE
Ambani dominates a dizzying array of sectors: Jio is India's leading telecoms carrier, Reliance Retail Limited is its top brick-and-mortar retailer, Reliance's Network18 Media & Investments Limited is one of its biggest news networks, and Reliance's Jamnagar is its largest oil complex.
His empire also produces films at Jio Studios and runs India's top soccer tournament, the Indian Super League.
By providing Indian consumers access to everything from groceries and clothes to banking and home automation via an integrated system running through Jio, Ambani hopes Reliance can become what he calls an "everything company."
To help back its retail push, Reliance in March asked an Indian logistics provider for some 5 million square feet of warehousing space, according to a person briefed on the plans.
That comes after a 2019 request for service, reviewed by Reuters, that said the company was seeking 1.1 million square feet of warehousing space that would be "expandable in future."
Reliance has not made public details of its warehousing space. By comparison, Amazon said in 2017 it had warehouses covering about 3 million square feet in India and has expanded since then. Amazon did not provide Reuters with an updated figure.
In addition to an eventual listing for Jio, Ambani has said he would look to list Reliance's retail operations as well.
Jio's other planned offerings include home viewings for films on the day of their theater release and networked security systems for cars.
But Jio's broadband rollout, which is key for many of its planned digital offerings, has hit glitches, in part because the company had not initially set up sufficient customer support services, according to two employees and internal chat messages reviewed by Reuters. And unlike in telecoms, Reliance has not offered steep discounts to attract new customers.
Ambani's ambition of creating a homegrown tech company took shape when Jio was launched in 2016 with aggressively priced data plans. Suddenly, migrant construction workers were video-chatting with their families, farmers were checking crop prices, and office workers were screening films during their commutes home on crammed trains.
Jio's competitors, then numbering around a dozen, were forced to slash prices, quit, or merge as Reliance pumped in at least $30 billion in oil-related earnings to subsidize prices. "We have to bleed others to death - I remember that as a refrain," said one former high-level Reliance executive, who asked not to be named.
Some rivals held out for longer than expected and Reliance ended up investing more than originally planned, according to a half-dozen sources who worked at Reliance or were briefed on the company's ramp-up.
Last year, Jio became India's No. 1 carrier by number of users. Meanwhile, rival Vodafone Idea Ltd, a venture between the Indian unit of Britain's Vodafone Group Plc and billionaire Kumar Mangalam Birla's Idea Cellular, has warned it may not survive having to pay about $4 billion in overdue levies and interest to the government.
RIL's Rs 53,124 crore rights issue subscribed 1.59 times; vote of confidence from investors, says Ambani
Share Market LIVE: Sensex drops 150 points, Nifty at 10,024; ONGC, HDFC, Indian Oil, Titan top laggards
Stocks in news: Aurobindo Pharma, DLF, Powergrid, ONGC, HPCL, Indian Oil, Bharat Petroleum and more
Moody's downgrades ratings of ONGC, HPCL, Indian Oil, Bharat Petroleum | a new service is being launched for grocery ordering and same-day release. the company is launching a smartphone ordering service with facebook's popular WhatsApp messaging. the company's digital business has raised a striking $10 billion from global investors. the investment puts the company on track toward a goal. a spokesman for the company says it is "very concerned" about the company's future. | Positive |
https://www.financialexpress.com/education-2/empowering-students-to-speak-the-truth-says-jamia-vice-chancellor-najma-akhtar/1998861/ | The MHRD’s National Institutional Ranking Framework (NIRF) ranks universities and colleges based on five parameters—teaching, research, graduation outcomes, outreach and perception. This year, Jamia Millia Islamia was ranked tenth. If it wasn’t for a poor score in ‘perception’, the university could have fared better—in fact, in ‘teaching’, ‘graduation outcomes’ and ‘outreach’, it was in the top-five. Najma Akhtar, vice-chancellor, Jamia Millia Islamia—and the first woman to hold the post—says that the university is working towards excellence and one of the ways it is getting reflected is good rankings. In an interview with FE’s Vikram Chaudhary, she adds that be it a JNU or a Jamia, if students perceive that something is wrong, they go out and speak up. Excerpts:
Jamia Millia Islamia not only broke into the top-10 in NIRF rankings, but also improved its position in the global THE and QS rankings. Was it due to a conscious effort?
Our focus is to keep working towards overall improvement, and that has now started reflecting. Ranking parameters give us some direction where all to improve; we are working towards excellence and one of the ways it is getting reflected is good rankings.
What is your plan for restarting physical classrooms?
Unless it’s proven safe, I don’t think we will be opening physical classrooms. Online education delivery is anyway going on.
When the lockdown started, we realised we were not fully prepared (in teaching online); I believe that was the case across all universities in India. So the first thing I did was organising training for the faculty on how to teach online. I think we were the first university in the country to train its own faculty members on online teaching; it’s a free training and we have now opened it for faculty from other universities as well.
How many placements/job offers have been impacted due to Covid-19?
Industry is being invited on webinars and interviews are happening online, but I have told my students that this year placements are going to be very tough (aapko bahut mehnat karni padegi placements ke liye, jobs ke liye). We don’t have the exact number of students who have lost job offers, because not all students have told us the same, but we have been telling the employees to continue with placement activities. I have an apprehension that the salaries on offer this year may not be as good (as they would have been in normal economy times).
What sort of research is happening at Jamia Millia Islamia on Covid-19 or pandemics in general?
We were told (by the minister) that he will support research. Social sciences research is going on—we have five adopted villages and are finding out how they are coping up with the pandemic—but engineering and medical research requires money; you need well-equipped labs. We have sent the minister some 25 proposals and are waiting for funding; even though we haven’t received it, we have asked our researchers to start.
Were any students locked up inside the campus?
There were about 600 students who were inside the campus when the lockdown started. Around Eid when road and train travel was opened, we send them to their homes; we could not place them in normal public buses, so we tested them, and when all were found coronavirus-negative, we hired buses and sent them home. They were from Uttar Pradesh, Bihar, Jharkhand and Kashmir. Right now we don’t have any student living on the campus, but for 100-odd students who are preparing for UPSC civil services and who have cleared the preliminary exam.
Does the university have a role in educating the larger public on matters that are pertinent to shaping a more egalitarian, more tolerant society?
This university is located inside an area that is not so economically well-off. It was started with an intention of nation-building and working for the community; Mahatma Gandhi was very active here. A lot of our activities happen with the community; our students keep travelling to adopted villages, they stay there, and work for the community. We are focusing a lot on girl child education. While we are not IGNOU, we have one of the biggest distance education outreach.
What role do educators and university administration have in inculcating a sense of ‘speaking truth to power’ amongst students?
We obviously don’t have a separate department that empowers students to speak the truth. I think our teaching in general empowers them. Be it a JNU or a Jamia, if students perceive that something is wrong, they go out and speak up. The dharna-kind of protest is new to Jamia, but nothing has ever happened inside the campus. Protests happen at every university—for backward castes, for fees, etc.
How is Jamia Millia Islamia celebrating 100 years of existence?
Universities get funding so that they can celebrate or create some infrastructure celebrating the event. The money is usually Rs 100 crore. We asked for a lesser amount earlier this year, but still haven’t received it. I know these are tough times and the number of universities has also increased so the funding has obviously reduced. I feel we should not be dependent on the government alone; we have to find other ways of earning money, like teachers doing consultancy, support from alumni, sharing our physical infrastructure, and so on. We are celebrating the centenary by holding webinars and other online activities.
Postscript: Najma Akhtar tells me that this is the first time a government-funded minority university has entered the top-10 in any major rankings. It’s not an elite institution, its students don’t come from an elite background, and yet if it has been able to get into top-10, it speaks volumes about educational improvement happening at Jamia Millia Islamia. | the MHRD’s National Institutional Ranking Framework (NIRF) ranks universities and colleges based on five parameters—teaching, research, graduation outcomes, outreach and perception. this year, Jamia Millia Islamia was ranked tenth in the NIRF rankings. vice-chancellor, Jamia Millia Islamia, says that the university is working towards excellence and one of the ways it is getting reflected is good rankings. | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/mncs-office-space-leasing-for-rd-base-in-india-rose-five-fold-in-2014-19-period-report/articleshow/79991923.cms | New Delhi: Gross office space leasing by multi national companies to set up R&D centres across major Indian cities stood at 14.13 million sq ft in 2019, a nearly five-fold jump from 2014, as the country remains an attractive destination for global outsourcing, according to Cushman & Wakefield.The property consultant has recently released its report titled 'Global Capability Centers -- Making India the Cradle of Global R&D' that analyses the Indian 'Global Capability Centers (GCC)' industry, its evolution over the years and key growth drivers.During 2014, only 3.15 million sq ft of gross office space was leased by captive or GCCs, contributing 8 per cent of the overall gross leasing. The number, however, jumped to 14.13 million sq ft during 2019.The share of captive centers in the overall office demand has risen to 20.9 per cent during 2019 from a mere 8 per cent in 2014, the consultant said in a statement."The captives, Global In-house centers (GICs) or Global Capability Centers (GCCs), however we classify them, have been in India for more than two decades. They have steadily grown over the years but the pace of growth has been significant in the last 5-6 years. They have rapidly expanded across cities to enable the parent global organisation's digital transformation journey," said Anshul Jain, MD- India & SE Asia, Cushman & Wakefield.As per the report, the total area occupied by the GCCs currently stands at 140 million sq ft currently, of which engineering and manufacturing accounts for 36 percent, followed by IT-BPM at 25 per cent and BFSI by 20 per cent.Bengaluru remains the 'Silicon Valley' of India and accounts for a major share of Indian tech business and GCCs.However, of late, other cities like Hyderabad, Pune, and Chennai have gained ground, especially as tech, financial services and manufacturing sectors have started expanding to other talent-rich geographies, it added.The report highlighted that the total number of GCCs in India is more than 1,750, while the numbers of companies that have set up GCCs in the country are over 1,400, of which 35 per cent are IT-BPM and 34 per cent firms are in the engineering and manufacturing sector.Interestingly, one fourth of global Fortune 500 companies have set up R&D bases in India.Out of the total number of GCCs in India, around 1,680 are in top six cities -- Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad and Chennai -- employing 1.17 million workforces.City-wise, Bengaluru houses 36 per cent of the total GCCs, followed by Delhi-NCR at 16 per cent and Hyderabad 14 per cent and Pune 12 per cent. Mumbai and Chennai each account for 11 per cent of the total GCCs.Around 17 secondary cities have 70 GCCs with over 30,000 employees. Secondary or tier-II cities such as Ahmedabad, Vadodara, Coimbatore, and Chandigarh are also attracting start-ups as well as GCCs because of talent pool availability and lower costs."The growth of GCCs is largely based on the three pillars of cost efficiency, innovation and delivery excellence. However, with global multinationals based in the US, Europe and Japan increasingly looking at India as an innovation and knowledge centre, GCCs have been focusing on the next phase of growth," Jain said.He expects India to become a hub of global ER&D (Engineering Research & Development) centres and contribute significantly to the digital strategies of global multinational corporations.According to the report, real estate costs are lowest in India compared to other APAC cities and this has been a major reason for growth of GCCs in the country.Cost is the key reason along with the talent pool, as annually India offers around 1 million of engineering graduates.Global multinational corporations prefer large Grade A office spaces at competitive rentals for their ER&D operations and India with lowest rents in the region offers the biggest cost savings among the peers."With rupee depreciation against the dollar of around 10-12 per cent already in 2020, and considering a further 2-3 per cent y-o-y depreciation in the rupee further, we could be looking at lower costs in dollar terms for occupiers, even if real estate costs were to rebound slightly in 2022-23, both of which will offset each other," the report said.Digital analytics, artificial intelligence and machine learning are some of the futuristic technologies in which expertise is being built to support the R&D strategies of parent organizations."In a world being continuously reshaped by COVID and its aftermath, innovation and R&D will be critical for global firms for evolving their businesses even as they will look for newer avenues to sustain and grow. GCCs in India are already at the forefront of driving such initiatives and delivering cutting-edge data science and insights for business and ensuring delivery excellence," Jain said.Cushman & Wakefield, which is listed on the NYSE, is a leading global real estate services firm with about 53,000 employees at 400 offices and 60 countries. In 2019, the firm had revenue of USD 8.8 billion across core services of property, facilities and project management, leasing, capital markets, valuation and other services. | Global Capability Centers' industry is growing rapidly in india. the country is an attractive destination for global outsourcing. the share of captive centers in the overall office demand has risen to 20.9 per cent during 2019 from a mere 8 per cent in 2014. the total number of GCCs in india is more than 1,750. the number of companies that have set up GCCs in the country is over 1,400. | Positive |
https://www.financialexpress.com/money/lic-housing-finance-reduces-home-loan-rate-to-7-5/1937394/ | LIC Housing Finance has reduced its rates of interest for individual home loan borrowers and will charge 7.5 per cent for new customers having a CIBIL score of 800 or more for any amount of loan. Earlier these individual home loan borrowers were charged a rate of interest of 8.10 per cent for any amount of loan.
The mortgage lender said an additional reduction of 10 bps will be offered i.e. interest rate of 7.40 per cent if the borrower assigns a new or existing single premium term assurance policy with the sum assured equal to the loan amount to LIC Housing Finance. The rate of interest will be linked to the creditworthiness as reflected in CIBIL scores of the borrowers. This rate reduction will be effective immediately, the lender notified.
Siddhartha Mohanty, MD and CEO of LIC Housing Finance Ltd, said, “The present crisis has forced businesses to adapt to factors like social distancing and prepare for a new normal by leveraging technology. Additionally, LICHFL’s home loan app HomY has equipped our marketing teams to onboard customers digitally and provide faster turn-around time in loan approvals as well as servicing without visiting our offices. We want to bring confidence back to the sector and will do our part in supporting the real estate industry and the economy.”
HDFC, India’s largest mortgage lender, also reduced its home loan rate by 15 bps a few days back. The development came in line with similar steps taken by the State Bank of India (SBI), which slashed its lending rate to pass on the RBIs rate cut benefits to borrowers. The Reserve Bank of India, on March 27 in its 7th bi-monthly monetary policy statement, announced a 75 bps cut in the repo rate along with a 90 bps reduction in the reverse repo rate. The announcement was to offset the impact of the coronavirus pandemic on the economy. | LIC Housing Finance has reduced its rates of interest for individual home loan borrowers. the mortgage lender said an additional reduction of 10 bps will be offered. the rate of interest will be linked to the creditworthiness as reflected in CIBIL scores of the borrowers. the development came in line with similar steps taken by the State Bank of India (SBI), which slashed its lending rate to pass on the RBIs rate cut benefits to borrowers. | Positive |
https://www.businesstoday.in/markets/commodities/rupee-vs-dollar-rupee-rises-22-paise-to-7148-per-us-dollar-as-trump-avoids-military-action-on-iran/story/393436.html | The Indian rupee advanced 22 paise to 71.48 per US dollar in opening trade on Thursday as global markets stabilised after the US and Iran toned down their war rhetoric.
At the interbank foreign exchange market, the rupee opened strong at 71.44 against the greenback.
The domestic unit had settled at 71.70 per dollar on Wednesday.
US President Donald Trump on Wednesday said Washington did not necessarily have to respond to Iranian attacks at American military bases in Iraq.
The comments came after Iran fired rockets at US facilities in Iraq in response to the killing of its top general Qassem Soleimani.
Reports said there were no US or Iraqi casualties from the Iranian strikes, amid speculation that Tehran may have deliberately pulled its punches to avoid a wider conflagration.
Taking cues from the easing tensions, Asian stocks darted up in opening trade while oil markets recovered from supply disruption fears.
Global oil benchmark Brent crude futures was trading 0.64 per cent up at USD 65.86 per barrel.
Domestic equity benchmarks too participated in the relief rally.
The 30-share BSE Sensex was trading 449.56 points or 1.10 per cent higher at 41,267.30 and the broader NSE Nifty surged 134.05 points or 1.11 per cent to 12,159.40.
Foreign funds sold shares worth a net Rs 515.85 crore on Wednesday, provisional data showed.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 97.27.
Stocks in focus: RCom, Vodafone Idea, Bharti Airtel, TCS, MMTC, NMDC, BHEL and others
Share Market LIVE: Sensex climbs 450 points, Nifty above 12,150; Bharti Airtel, YES Bank, TCS top gainers | rupee opens strong at 71.48 per dollar in opening trade. domestic unit settled at 71.70 per dollar on Wednesday. easing tensions between the two countries helped boost global markets. global oil benchmark Brent crude futures trading 0.64 per cent up at USD 65.86 per barrel. broader nifty and Sensex also surge in opening trade. | Positive |
https://www.moneycontrol.com/news/reopening-india/ | The economy is opening again after a painful pause necessitated by the coronavirus lockdown. Customers were in hiding, demand dropped to a trickle, supply chains were broken and consequently businesses took a pounding they will not forget. How will businesses open up? How soon can they hit the recovery path? Moneycontrol journalists will track all the action in companies big and small in sectors as diverse as hospitality and retail as they hit the restart button through stories, data, photos, podcasts and videos. You can catch them all here in one place. | the economy is opening again after a painful pause necessitated by the coronavirus lockdown. moneycontrol journalists will track all the action in businesses big and small as they hit the restart button. you can catch them all here in one place. a new series of stories will be released on thursday. back to mail online home. back to the page you came from. | Positive |
https://economictimes.indiatimes.com/tech/ites/tcs-hits-100-billion-market-cap-does-this-mark-a-new-phase-of-growth-for-india-inc/articleshow/63954619.cms | Elevate Your Tech Prowess with High-Value Skill Courses Offering College Course Website MIT MIT Technology Leadership and Innovation Visit Northwestern University Kellogg Post Graduate Certificate in Product Management Visit Indian School of Business ISB Digital Transformation Visit
A record created at the beginning of last week might set the stage for a phase of new growth highs for India Inc.On April 23, the market capitalisation of Tata Consultancy Services Ltd (TCS) crossed the $100 billion milestone. It hit a high of $103 billion (Rs 6.8 lakh crore). The shares hit a high of Rs 3,557.00 on the BSE. Though the market capitalisation (m-cap) has slid from the day’s high, it has hovered around that level this week. TCS ’ shares ended at Rs 3,454.80 on April 27, giving it a market capitalisation of $99.27 bn (Rs 6.61 lakh crore, at an exchange rate of Rs 66.62 to a dollar), according to the BSE.This feat has thrown up the question, who is next? The spotlight is on Reliance Industries and HDFC Bank. Reliance Industries had hit a record high on April 27, registering a market cap at Rs 6.3 lakh crore. Next in line are ITC , Maruti Suzuki India and Hindustan Unilever. These companies make up the pack of possible $100 billion entities in India in a few years. TCS is now ranked 104 and Reliance 119 on the global list of companies by market capitalisation. HUL and Maruti are much lower in that order but the companies have been able to grow their market capitalisation at a faster clip over the past few years.Market watchers are now asking if this is the beginning of a new phase of growth for Indian companies, where a bunch of them find mention in the global top 100 companies by m-cap.But experts say crystal-gazing is pointless. The goalposts shift constantly in this game. After all, Reliance did break into the $100 billion club once, on October 18, 2007. That afternoon, 10.57 lakh shares of the company were traded, pushing the stock up by more than Rs 114, to its lifetime high of Rs 2,805. The m-cap hit Rs 4.07 lakh crore. The rupee was at Rs 39.9 to a dollar. It is Rs 66-67 to a dollar today. The timing is right for Reliance to go for a second attempt.Given that a weaker rupee augurs well for TCS, which earns most of its Rs 1,23,100 crore annual revenue through exports, it is likely that the flagship of the Tata group is here to stay in the $100 billion club, or at least in the vicinity of the mark.S Ramadorai, former managing director and vice-chairman of TCS, says any of the top 10 Indian companies by market capitalisation that has an export-oriented business can break into the $100 billion club, provided the rupee depreciates further. Ramadorai, who led TCS between 1996 and 2009 as MD, tells ET Magazine that the key to TCS’ success is the constant focus on technology, people and customer orientation.Ajay Piramal, chairman of Piramal Enterprises and a director of Tata group parent Tata Sons, says: “We applaud TCS on this achievement, which marks a significant milestone for India Inc. Such accomplishments serve to create a ripple effect by infusing a fresh wave of optimism and aspiration among Indian corporates.”MD and CEO of Kotak Mutual Fund Nilesh Shah points out that TCS achieved this growth without raising money from the market after its initial public offering. He identifies rapid growth, consistent and adaptable management and consistent profitability as the three key attributes that can make a company great. “TCS has all three,” he adds.Soon, there will be at least three or four Indian companies in the $100 billion bracket, says Raamdeo Agrawal, joint managing director of Motilal Oswal Financial Services. This achievement has shown the robustness of Indian businesses, he adds.Fund manager Kenneth Andrade also says this is inevitable, if India grows from a $2.2 trillion economy to a $6-7 trillion economy in the next decade. The Indian market has been kept afloat by capital flows for six-seven years. However, it is now entering a phase where corporate profitability will become the main driver. He sees the profitability of the Indian corporate sector doubling in four years. “It cannot happen without a bunch of Indian companies in the top bracket.”Shah of Kotak, however, disagrees with this theory and says only HDFC Bank and Reliance Industries seem poised to enter the $100 billion club anytime soon. First, there is the issue of the moving goalpost, due to the rupee-dollar rate fluctuations. This keeps the $100 billion mark in rupee terms constantly on the move. Second, Shah says, the Indian economy at $2.2 trillion is still small and Indian companies will need to wait for the economy to grow.Keeping the rupee factor aside, there will have to be a constant focus on profitability, along with turnover, to drive the market capitalisation of Indian companies towards $100 billion. Market capitalisation can be a tricky game and is never a flat race, say experts.Take, for instance, Indian Oil Corporation (IOC), the biggest Indian company by turnover. It often makes the global 500 list of companies by gross sales. Last year, IOC came in at 161. But it is way behind on market cap, with its profit margins being an abysmally low 5%.But public sector undertakings (PSUs) can play the m-cap game too. The year 2011 saw PSUs like Coal India and ONGC topping the Indian market cap league table for brief periods. HDFC Bank, currently at third position with an m-cap of Rs 4.98 lakh crore, had also raced ahead of Reliance for some time in early 2017.Then there is the question of sustainability on companies that show fast growth in m-cap. Hindustan Unilever recorded a 59.9% growth in m-cap in a year to Rs 3.19 lakh crore, and the scrip is currently trading at a price-earnings multiple of 63. Maruti Suzuki, with Rs 3.3 lakh crore in m-cap, has seen its m-cap grow at a staggering 33% compound annual growth rate for three years. But ITC, which is ahead of both these companies at Rs 3.4 lakh crore, has actually seen no growth in m-cap in the past one year. It has registered a CAGR of 6% over the past three years.The banking sector could throw up the next $100 billion company, especially as talks of a merger are abound in the market. Would a merger of HDFC Bank with HDFC or, say, ICICI Bank; or a merger of Kotak Mahindra Bank and Axis Bank fuel a spurt in market capitalisation in the sector? Kotak’s Shah says such mergers are not necessarily m-cap accretive and can reduce valuations too.To enter this higher echelon of the corporate world, says Shankar Sharma, the cofounder and chief strategist at First Global, Indian companies need to become global in their footprint. “Most large Indian companies do not operate in pure-tech space. This is one reason why we don’t have companies with $100 billion m-cap. Old-economy companies have clients across the world but cannot scale up like a tech company.” TCS entering the $100 billion club, says Sharma, is like a batsman hitting a triple century and should be celebrated.Former Tata Sons director R Gopalakrishnan, who was also part of HUL’s top management before moving to the Tata group, says it makes him emotional to see two companies he has been associated with doing well. Taking the cricket analogy further, he adds: “TCS achieving $100 billion is undoubtedly fantastic, but it is like the crowning glory of one innings. Many more innings loom — to be played and to be won in the years ahead by the same batsman. But to use this triple century in one innings to predict more triple centuries by other batsmen is hope and ambition, rather than a likely outcome.”Piramal says TCS has clearly marked out a pathway for others. “This is a brilliant example of how Indian players can create a global impact by leveraging a values-driven culture, robust corporate governance and a strong entrepreneurial spirit to ensure a constant state of transformative growth,” Piramal adds.The biggest of Indian companies will seek their global place when seeking to grow inorganically, says Ramadorai. “I am sure they will rightfully aim for a position on the global scene. Acquisitions are an ongoing process globally, based on merits and synergies, and I am confident that Indian multinational companies will continue to play an active role.”Shah of Kotak Mutual Fund says TCS’s success will surely rub off on brand India. “When a company reaches the $100 billion mark, it starts to create a brand name for itself. The brand value thus created rubs off on the country from which it originates. Brand India stands to gain significantly from TCS’ achievement. Beyond that, employee morale goes up, client opening become easy, growth becomes easier and as a company, you don’t ha ve to hard sell yourself to get clients once you reach that mark. You just have to keep up the quality of your delivery.” | the market capitalisation of Tata Consultancy Services Ltd (TCS) crossed the $100 billion milestone. it hit a high of $103 billion (Rs 6.8 lakh crore) the shares hit a high of Rs 3,557.00 on the BSE. the spotlight is on Reliance Industries and HDFC Bank. next in line are ITC, Maruti Suzuki India and Hindustan Unilever. | Positive |
https://www.financialexpress.com/auto/car-news/mg-zs-ev-india-production-increase-demand-prices-range/1832923/ | MG Motor India will begin ZS EV deliveries on January 27 across five cities – Delhi/NCR, Ahmedabad, Mumbai, Bangalore, and Hyderabad.
MG Motors has today launched the ZS EV in India. In the 27 days preceding the launch of this all-electric SUV, the British marque has received 2,800 bookings for the same. The MG ZS EV’s prices in India fall in the range of Rs 20.88 lakh to Rs 23.58 lakh (ex-showroom). The company said that for those who have booked their vehicle before January 17th, the ZS EV will be priced in-between Rs 19.88 lakh to Rs 22.58 lakh (ex-showroom).
MG Motor India President and MD Rajeev Chaba told PTI that the company recieved 2,800 bookings, however, they can only service 2,400 units. This has exceeded the company’s expectations and is going to force the company to rethink everything planned around the car. Earlier, MG had an internal target of about 1,000 bookings only. At the moment, the waiting period for the MG ZS EV stands at 6-9 months.
MG has stopped the bookings for the ZS EV from January 17. However, is the customers want, they can book the car at the new prices. In order to meet the increased demand, MG Motors is going to increase the production of the ZS EV in India. Earlier, the company has planned production of about 200 units of this electric SUV every month. However now, MG plans to increase the production of the same to 300 to 400 units every month for the next three to four months.
MG Motor India will begin ZS EV deliveries on January 27 across five cities – Delhi/NCR, Ahmedabad, Mumbai, Bangalore, and Hyderabad. However, he said, “With the sort of response, we will accelerate launching the vehicle in other markets beyond the five cities.” The ZS EV is a globally-successful product that operates at the intersection of an EV’s sustainability, an SUV’s practicality, and a sports car’s performance, he said.
While Chaba further said, “We will continue to strengthen the Indian EV landscape, as we offer the best of EV technology and act as the catalyst for the country’s nascent EV market by providing a complete, end-to-end ecosystem.” The company is already selling the vehicle than 10 international markets such as the United Kingdom, Europe, Australia, and Southeast Asia.
Inputs: PTI | MG Motor India will begin deliveries of the all-electric SUV on January 27. the company has received 2,800 bookings for the same in the past 27 days. the company has stopped bookings for the car from January 17th. but they can only service 2,400 units. MG plans to increase the production of the same to 300 to 400 units every month for the next three to four months. | Positive |
https://www.financialexpress.com/industry/likely-blanket-suspension-of-fresh-cases-under-ibc-may-kill-any-chances-of-viable-restructuring-of-assets/1983893/ | By Saurav Kumar and Gaurav Dani
As part of the stimulus package announcement, the Finance Minister has recently announced in connection with the Insolvency laws in India, that there would be a suspension of fresh cases under Insolvency and Bankruptcy Code, 2016 (Code) for six months and up to 1 year. The ordinance to this effect was passed on June 5, 2020, which notifies Section 10 A of the Code, suspending the enabling provisions under Section 7,9 and 10 of the Code that allows for the initiation of a fresh application by a financial creditor, operational creditor or the corporate debtor, respectively. We understand that the main reason for such an important policy decision is emanating largely from the disruption in supply chain arising due to Covid-19 and resultant lockdown. This has caused a suspension of their business activities leading to negligible receivables while the cost continues. The government has duly recognised these uncertain times and has taken an accommodative stand to provide some breathing space to the business. The relief is said to be particularly beneficial for micro, small and medium enterprises (MSME). We would like to discuss these measures under a few broad points.
Voluntary Insolvency
Firstly, there seems to be no rationale of the government to suspend provisions of Section 10 of the Code that allows for a corporate debtor to suo moto/voluntary file for insolvency. The suspension would literally be forcing such corporate debtor to continue for another year before it can file for insolvency. It may be a safe assumption to suggest that by this time the assets would have deteriorated even further and any chances for a viable restructuring would have been lost.
Only Covid-19-related Defaults
Secondly, the ordinance appeared to be straight forward providing a blanket suspension of fresh cases under the Code for defaults after March 25, 2020. While other jurisdictions have also adopted the accommodative stance, they have been varying and have drawn a redline for defaults that may have occurred as a direct result of Covid-19. For example, in Germany on March 25, 2020, the German Parliament passed a bill “to mitigate the consequences of the Covid-19 pandemic in civil, bankruptcy and criminal procedure law” (COVID19 Bill). As part of the Covid19 Bill, there is a suspension of, inter-alia, creditors’ right to file for insolvency until September 30, 2020. This deadline can be shifted by the Federal Ministry of Justice until March 31, 2021, by decree.
However for suspension of the filing obligation, two conditions have to be satisfied, First, the reason for insolvency must be based on the effects of the Covid-19 pandemic (and not on other reasons). Second, there are prospects for a restructuring of the company due to pending procedures for granting public aid to the company and/or pending negotiations with (potential) creditors of the company about additional financing or reorganization of debt. There is also a legal presumption that the above conditions are fulfilled if the company was not insolvent as of December 31, 2019.
Singapore as another example passed the Covid-19 (Temporary Measure) Act, 2020 (Singapore Act). Amongst other things, the Singapore Act provides for a moratorium on claims and/ or enforcement actions provided certain requirements, inter-alia, are met. First, it must relate to a scheduled contract. Second, the contract and the obligation must fall within the Covid-19 time period as provided in the Singapore Act. Third, the inability to perform the contract is to a material extent cause by Covid-19; and fourth, the defaulting party must serve a notice of relief on the other parties. Upon serving notice the other parties to the contract cannot take, inter-alia, file for insolvency proceedings during the prescribed period, unless the assessor makes a determination that the case is not one to which the relief should apply.
The United Kingdom has recently introduced the Corporate Insolvency and Governance Bill (UK Bill) which provides a host of measures to allow the companies to survive through the Covid-19. The UK Bill provides, inter-alia, first, a new moratorium provision where a company can apply for a 20 business days moratorium period through a court process that may be further extended by another 20 business days. Such 40 business days moratorium would not require creditors approval. Second, a temporary provision to restrict statutory demands and winding up petitions issued against companies where the debt is unpaid for reasons relating to Covid-19.
India does not seem to be following any of the above approaches but prefers to provide a simpler and cleaner provision of suspension, which may need to be relooked in light of the measures followed in other jurisdictions, otherwise, we could quite easily go back on all the progress we have made so far in the Insolvency process under the Code.
Pre-packs and White Knights
Thirdly, for a resolution to be successful a white knight is needed to step in and salvage the corporate debtor. The government may be of the opinion that there may not be enough resolution applicants in the market at this point, leading to a large number of liquidations, which may not benefit the economy. The Code was established with an objective of maximization of value and not the maximization of ‘price’. The value improves if a business is continued and its assets are used more efficiently, which is possible with a change in management, restructuring of the organization, and so on.
One may argue that there could still be adequate availability of white knights provided restructuring plans are accepted on the basis of value maximization for the stakeholders without significant outgo upfront. A counter to this would be that such an approach is possible under the prudential framework of RBI or under a restructuring route under the Companies Act, 2013, however, lenders may find it more difficult to find a reasonable outcome going with the suspension of the provisions of Code
Corporate Governance
Lastly, Section 66 (2) of the IBC provides that if the directors allow a corporate debtor to trade where they knew or ought to have known that the company had no reasonable prospect of returning to solvent trading, they can be held personally liable. Such an assessment by a director during the Covid-19 period could become extremely challenging. The suspension of the provision of Section 66(2) is quite relevant from a governance perspective.
To conclude, the main objective of any bankruptcy law is to reset the clock of a debtor overburdened by the debt and at the same time, preserve the going concern’s value by reorganizing rather than liquidating. Accordingly, the government may consider a more rationale stance around suspension which should be only in relation to the Covid-19 related defaults and the duration may be more reasonable so as to not over-protect. Also, Section 10 should, in particular, be excluded from the suspension.
Saurav Kumar and Gaurav Dani are Partners at IndusLaw. Views expressed are the authors’ own. | the government has taken an accommodative stand to provide some breathing space to the business. the relief is said to be particularly beneficial for micro, small and medium enterprises. the government has taken an accommodative stand to provide some breathing space to the business. the relief is said to be particularly beneficial for micro, small and medium enterprises. the government has taken a accommodative stand to provide some breathing space to the business. | Positive |
https://www.moneycontrol.com/news/business/economy/coronavirus-crisis-fm-nirmala-sitharaman-may-soon-announce-massive-rs-3-lakh-crore-stimulus-package-5253721.html | Finance Minister Nirmala Sitharaman may announce a massive economic stimulus package worth Rs 3 lakh crore later this week, according to a report in the Business Standard.
Other ministries are also expected to offer revival packages for their respective sectors.
The spending on all the initiatives put together is expected to rival that offered by G-20 nations in terms of percentage of GDP.
Moneycontrol could not independently verify the report.
The government was earlier considering a measured approach to deal with the situation despite mounting pressure from industries.
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
Government officials pointed out that one of the reasons for the change in stance could be the wiggle room provided by the increase in proposed borrowing for FY21 to Rs 12 lakh crore from Rs 7.8 lakh crore.
Another reason might be the increasing uncertainty on how “deep the economic slump is and could be”. The government may also want to support small businesses as the economy gradually opens up.
The official added that the “next set of announcements” would be massive compared to the previous Rs 1.7 lakh crore package announced by the Finance Minister.
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What is expected?
> Credit guarantee scheme for working capital loans of micro, small and medium enterprises
> Incentives for companies and businesses to maintain a stable workforce, especially as the migrant workers' crisis deepens
> Expansion of direct benefit transfer (DBT) schemes
> Possible hike in MNREGA payments
> Accelerated disbursals under PM-KISAN Scheme
> Expanded economic activity in Green and Orange Zones, and further gradual easing of lockdown
> Details on the resumption of train services, possible resumption of flight services
> Boost for sectors worst hit by the pandemic such as hospitality, tourism, travel, aviation, and auto among others
> Separate announcements by various ministries for their particular sector (s) – such as non-banking finance companies (NBFCs) and mutual funds (MFs).
Industries bodies have been continually asking the government for financial support. On May 11, FICCI President Sangita Reddy in a letter to the Finance Minister said: “quick release” of Rs 2.5 lakh crore is essential for the Indian economy.
The industry body had suggested a Rs 4.5 lakh crore support package on the whole.
Reddy also made a case for the need to create a self-sufficiency fund for innovation, construction and manufacturing clusters to make use of the emerging opportunities in the wake of disruption in the global supply chain.
Follow our full COVID-19 coverage here | finance minister may announce massive economic stimulus package worth Rs 3 lakh crore. spending on all the initiatives put together is expected to rival that offered by G-20 nations. a vaccine works by mimicking a natural infection. a vaccine helps quickly build herd immunity to put an end to the pandemic. a vaccine is based on the whole virus, but it is not a weakened virus. | Positive |
https://www.moneycontrol.com/news/india/pakistan-making-business-out-of-faith-harsimrat-badal-on-kartarpur-service-charge-4553651.html | Union Minister Harsimrat Kaur Badal has slammed Pakistan for its insistence of charging USD 20 as service fee from Indian devotees for visiting Kartarpur Sahib Gurdwara, saying that the neighbouring country has made a "business out of faith".
"The $20 fee each charged by Pakistan for Kartarpur Sahib darshan is atrocious. How will a poor devotee pay this amount? Pakistan has made a business out of faith. @ImranKhanPTI's statement that this fee will boost Pak's economy & result in earning foreign exchange is highly shameful," Harsimrat said a tweet.
Earlier, Punjab Chief Minister Amarinder Singh had also lashed out at Pakistan for demanding the USD 20 service charge, saying it was tantamount to "putting a ticket" on visiting the historic gurdwara.
During third round of meeting between both nations last month, India had expressed disappointment over Pakistan's "persistent inflexibility" on USD 20 service fee issue and had asked it to reconsider it.
In a major initiative last November, both India and Pakistan had agreed to set up the Kartarpur corridor.
The corridor will connect Darbar Sahib in Pakistan's Kartarpur with Dera Baba Nanak shrine in Gurdaspur district in Punjab and facilitate visa-free movement of Indian pilgrims, who will have to just obtain a permit to visit Kartarpur Sahib, which is located in Pakistan's Narowal district across the Ravi river.
Kartarpur Sahib is located in Pakistan's Narowal district across the Ravi river, about four kilometres from the Dera Baba Nanak shrine.
Pakistan is building the corridor from the Indian border to the Gurdwara Darbar Sahib in Kartarpur, while the other part from Dera Baba Nanak in Gurdaspur up to the border is being built by India.
The four-lane highway connecting the Zero Point of the Kartarpur Corridor up to National Highway-354 is being constructed by the National Highways Authority of India (NHAI).
The corridor will be opened in November in the wake of the 550th birth anniversary of Guru Nanak Dev. | u.s. minister says Pakistan has made a "business out of faith" on the fee. he says the fee will boost the country's economy and earn foreign exchange. the gurdwara is located in Pakistan's Narowal district across the Ravi river. both countries agreed to set up the Kartarpur corridor last November. | Positive |
https://www.businesstoday.in/markets/stocks/sensex-jumps-268-pts-nifty-above-11500/story/329159.html | The stock market continued its winning run for a seventh consecutive session Tuesday with the BSE Sensex rising 268 points to close at over six-month high led by gains in index heavyweights like ITC, RIL and Infosys amid continuous foreign fund inflow.
The 30-share index started off on a strong footing at 38,218.59 points and touched a high of 38,396.06 before winding up at 38,363.47, recording a significant rise of 268.40, or 0.70 per cent. Intra-day it also hit a low of 38,078.23.
The gauge had climbed over 1,420 points points in the previous six sessions.
The 50-share NSE Nifty closed at 11,509.80, higher by 70.20 points, or 0.61 per cent, after hovering between 11,543.85 and 11,451.55.
These are the highest levels for both indices since September 7.
The gains on domestic bourses were led by PSU, oil and gas, infrastructure, realty, banking and power sector stocks as investors indulged in widening their exposure.
Traders said widening of positions by retail investors amid continued buying by foreign institutional investors (FIIs) as expectations that the incumbent government would return to power after the general elections, starting next month, boosted investor confidence.
Broadly, sentiments continued to remain bullish despite profit-booking at current levels by speculators, they added.
Sentiment also got a lift after the GST Council approved a transition plan for the implementation of new tax structure for housing units at its meeting earlier in the day.
Most other Asian markets held steady ahead of a Federal Reserve policy meeting later this week, but were broadly at near six-month highs on expectations the US central bank might strike a dovish tone.
Meanwhile, on a net basis, FIIs bought shares worth Rs 1,823 crore, while domestic institutional investors (DIIs) offloaded equities to the tune of Rs 1,269 crore Monday, provisional data showed.
Also Read: Mindtree, L&T shares slip over 2% after Rs 10,700 crore deal announcement; L&T Infotech surges 6%
Also Read: RCom shares jump 10% after Mukesh Ambani bails out brother Anil on Ericsson dues | the 30-share index opened at 38,218.59 points before winding up at 38,363.47. the 50-share NSE Nifty closed at 11,509.80, higher by 70.20 points, or 0.61 per cent. gains on domestic bourses were led by PSU, oil and gas, infrastructure, realty, banking and power sector stocks. | Positive |
https://www.businesstoday.in/sectors/banks/how-will-secondary-loans-market-change-the-banking-landscape/story/379336.html | A Reserve Bank of India (RBI) committee report recently recommended deepening the secondary market for corporate loans, which, experts believe, will not only help banks improve their profitability, but also revive the lacklustre corporate bond market amidst the ongoing credit squeeze. However, operational concerns need to be addressed as the central bank prepares the regulations.
Some of important recommendations include creating an online marketplace to auction/sell loans; setting up a self-regulatory body of participants, which will finalise detailed modalities and suggest amendments in regulations issued by Sebi, IRDAI and PFRDA to enable participation of non-banking entities such as mutual funds, insurance companies and pension funds.
"The latest set of recommendations offers hope. A fairly large investor base with some restrictions from respective regulators exists even today, but is restricted to shorter tenure loans in the form of corporate bonds. The recommendation to permit more participants and to encourage existing participants through change in regulations is welcome and should encourage liquidity," says Ravikant Bhat, Research Analyst at IndiaNivesh Securities.
How will things change?
Benefits:
1. Better churning of funds
Currently, the secondary loan market in India is largely restricted to sale to asset reconstruction companies and ad hoc sale to other lenders including banks, but there is no formalised mechanism to deepen the market. So, options are limited and demand unknown. "Developing the loan market will benefit banks because selling off existing loans will enable them to mobilise their funds better, thus enhancing the credit flow in the economy," says Krishnan Sitaraman, senior director (financial sector ratings & structured finance ratings), Crisil Ratings.
Also read: SBI home loans get cheaper: All you need to know
2. Exposure/ALM management
The move will help banks realign their portfolio and balance asset liability mismatches (ALMs) along with improving profitability. "Banks will be able to offload any excessive exposure to a particular company or a group. If they have long-term loans in the books, they can shorten the maturity by selling these long-term assets to other investors. This could be an alternative source to fund liabilities too. Besides, their return on assets and return on equity metrics will improve as they can improve their bottom-lines without increasing the asset base," added Sitaraman of Crisil.
3. Better price discovery
In case banks fail to judge the credit assessment of a corporate or potential of a project appropriately, and values the loan at lower or higher than the required interest rate, trading it in a secondary market may correct the loan pricing. "Market forces determining the pricing of loans will, of course, be more efficient. If the market deepens, better price discovery happens," says Shishir Mehta, partner at Khaitan & Co.
Concerns:
1. Banks not doing due diligence
There could be a possibility that some of banks do not execute due diligence when originating the loan (being in a hurry to meet targets) knowing that they can sell it off later. "The quality of due diligence by banks could be of different qualities. The way smaller banks show laxity in credit check in consortium-led lending, that may happen in the new set-up also because they know they can offload loans in the secondary market," says Madan Sabnavis, Chief Economist, Care Ratings.
Also read: Home, auto loans to get cheaper! RBI makes repo-linked interest rates mandatory
2. Savings of common people could be at risk
Mutual funds, insurance companies and few other investors pool in savings of common people. They need to be careful about which corporate loans they buy in the secondary market as any default or delay in loan repayments may put their funds at risk. "As evidenced by experience, the probability of default cannot be zero. Even the highest credit rating only signifies 'highest safety'. However, some of the more recent default events have triggered a review of the risk management systems including the role played by credit rating agencies. These checks and balances will continue to evolve and fine tune," said Bhat of IndiaNivesh.
Experts also advise caution regarding illiquidity in the market, as not all investors will be willing to buy large bank loans. They advise a secondary market only for mid-sized loans first, while the central bank and other regulators streamline the processes.
The report by a six-member taskforce, headed by Canara Bank Chairman T.N. Manoharan is comprehensive in its suggestions. It is open for public comments until September 30.
Also read: SBI's repo-linked home loan rates down to 8.05% from today; EMIs to follow suit
Also read: HDFC Bank doubles mid-corporate loan book to over Rs 90,000 crore in last 3 years | RBI committee report recommends deepening secondary market for corporate loans. experts believe move will help banks improve profitability and revive corporate bond market. some of important recommendations include creating an online marketplace to auction/sell loans. a self-regulatory body of participants will finalise detailed modalities and suggest amendments. a 'fairly large investor base' with restrictions from respective regulators exists even today. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/why-india-may-be-donalds-trump-card/articleshow/74263600.cms | (This story originally appeared in on Feb 23, 2020)
The US pivot to Asia has been almost a decade in the making. But for the past two decades, the more significant development has been the Indian pivot to the US. This change of direction, after almost half a century of “tilt” towards Russia, has meant that on a geopolitical level, India is quietly reorienting its approach, outlook and policies to reflect the growing convergence with the US. Donald Trump may be the most transactional US president till date, but he has largely upheld the traditional American understanding that India’s global rise is a good thing because a successful India would be a powerful democratic counter-balance to an expansionist and authoritarian China.This matches India’s own notion that it was the only natural balancing power to China in Asia. That was one of the reasons behind the US using its global heft in an unprecedented move to lift India’s nuclear pariah status. Since then, India has been integrating itself into the global technology regimes, which it had been denied. As former PM Manmohan Singh observed while returning from signing the deal in 2005, “The nuclear deal will do for India in strategic and technology terms what the 1991 economic reforms did for its economy.”When Modi came to power in 2014, his overt investment in the US could not be missed. He built a solid relationship with Trump’s predecessor, Barack Obama and over the past three years, has assiduously worked on Trump. Going beyond the trade difficulties, the Modi government moved from crafting a joint strategic vision for Indian Ocean and Asia-Pacific in January 2015 to aligning their Indo-Pacific policies by 2019. In 2018, the Pentagon articulated what it called a “three-pronged” strategy of maritime cooperation with India — a shared vision on maritime security, upgrading bilateral maritime security partnership and collaborating to build regional capacity and improve regional maritime domain awareness. In the past few years, India has built its own complementary strategy.As Ashley Tellis points out in an article for Foreign Affairs, “The Trump administration’s focus on great-power competition, its designation of China as a strategic competitor, and its pursuit of a ‘free and open Indo-Pacific’ all gave India renewed importance.”What this showed was the growing convergence between the two asymmetrical powers on strategic affairs — as the US took on China in the South China Sea, India has been slowly but surely building up its own capabilities in the Indian Ocean, both with the aim of balancing China’s rise. India has been building its own alliances in the Indo-Pacific region — with France, Australia, Indonesia, Vietnam and Singapore, all with huge overlaps with the US. India’s closest strategic partner in Asia is Japan, which, together with the US, forms the core of the Indo-Pacific.India has also accommodated the US in its immediate neighbourhood, from Nepal to Bangladesh and Sri Lanka, as both powers work to limit China’s influence. In the past few months, both the US and India have independently been reaching out to the Central Asian states, building networks that provide alternatives to Chinese expansionism — the US also wants to limit Russia’s influence, but India is happy to give Russia a lead position there. This flexibility has worked well for India, while the US is slowly learning to live with India’s independent strategic vision that includes Russia and Iran.Three areas — energy, defence, and people — provide the underpinnings for the new and improved India-US strategic partnership. India is diversifying its energy basket away from the Gulf by buying more oil and gas from the US. The US has become one of India’s biggest defence suppliers. Underlying this geopolitical convergence is the obvious affinity of the Indian people for the US, which has meant 4 million Indian Americans, 200,000 students who form the backbone of the strategic partnership. That is for any US administration to cash in, because it ties India closer to America in the most fundamental of ways.Tellis says, “India and the US are far from becoming formal allies. They are dogged by persistent trade disagreements, which India shows no inclination to settle. But given Trump’s record with other US allies, his administration has been surprisingly lenient when it comes to India’s uncompetitive trade practices. It has also kept mum about India’s feared drift toward illiberalism, enabling both countries to push ahead on strategic, especially defence, cooperation, which has always been the lodestar that guides US-Indian relations.” | the US has been using its global heft to lift India’s nuclear pariah status. since then, India has been integrating itself into the global technology regimes, which it had been denied. the change of direction has meant that on a geopolitical level, India is quietly reorienting its approach, outlook and policies to reflect the growing convergence with the US. | Positive |
https://www.moneycontrol.com/news/world/repair-and-prepare-eu-unveils-750-billion-euro-plan-for-coronavirus-recovery-5322921.html | The European Commission unveiled on Wednesday a plan to borrow on the market and then disburse to EU countries 750 billion euros in grants and loans to help them recover from their coronavirus slump, giving an immediate boost to the euro.
Much of the money is to go to Italy and Spain, the worst affected by the pandemic, which together would receive 313 billion euros in grants and loans.
The aim is also to protect the European Union's single market of 450 million people from being splintered by divergent economic growth and wealth levels as the 27-nation bloc emerges from its deepest-ever recession, which is expected this year.
Of the 750 billion euros, two-thirds would be in grants financed by joint borrowing and one-third in loans.
The grants, although controversial, are needed because Italy, Spain, Greece, France and Portugal already have high debt and are heavily reliant on tourism that was brought to a halt the pandemic. They will find it more difficult than more frugal northern nations to restart their economies through borrowing.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
The euro rose on the news to trade at 1.1022 against the dollar, up from 1.0932.
The recovery fund package is in addition to the EU's long-term budget for 2021-27, which the Commission will propose being set at 1.100 trillion euros, is virtually the same as the proposal discussed by leaders in February of 1.095 trillion.
"In total, this European Recovery Plan will put 1.85 trillion euros to help kick-start our economy and ensure Europe bounces forward," the EU executive said in a document titled "Europe's moment: Repair and Prepare for the Next Generation".
CONCERN
The 500 billion euros in grants is in line with the wishes of the EU's two biggest economies - France and Germany - though some nations would rather see the recovery package comprise only loans.
The borrowing will have to be repaid, meaning higher national contributions to the EU budget in the future or new taxes assigned to the EU.
The Commission proposed new revenues in the form of a tax on plastics, some money from the CO2 emissions trading scheme, a digital services tax, a part of national corporate taxes and an import levy on goods produced in countries with lower CO2 emissions standards than the EU.
It also proposed the EU budget should get a bigger share of the Value Added Tax paid by governments to the EU.
Follow our full coverage of the coronavirus pandemic here. | 750 billion euros to be disbursed to countries affected by coronavirus. money will be used to help them recover from their slump in coronavirus. much of the money is to go to Italy and Spain, the worst affected by the pandemic. the 27-nation bloc is expected to emerge from its deepest-ever recession this year. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/features/from-airlifting-meat-to-battling-misinformation-how-licious-zappfresh-and-freshtohome-kept-pace-with-online-deliveries-during-lockdown/articleshow/75861342.cms | Licious team conducting quality examination.
Deepanshu Manchandana, co-founder, ZappFresh
Licious team of expert packers at work.
It was an airlift of a different kind. As a nationwide lockdown snapped the supply chain and delivery channels across the country, meat delivery firm Licous resorted to airlifting meat produce. During the initial days of lockdown, the Licious team airlifted their products (primary raw and fresh category) to the northern part of the country, where the supply chain was most impacted.“This was done for a brief period of time and all transportation was done as per government permission and permitted vehicles,” Vivek Gupta, co-founder, Licious, told ET Digital.The nationwide lockdown has given momentum to the online food deliveries in India and has turned out to be a good opportunity for many online grocery startups to cash in. The online meat delivery industry has also come out winners.According to an analysis of the national health data by IndiaSpend and FactChecker, 70% of Indian women and 80% men consume non vegetarian-food. On a weekly basis, 48.9% men and 42.8% women consume non-vegetarian food. These figures have proved to be appealing for a number of meat delivery startups such as Licious, FreshToHome , and ZappFresh “We have witnessed an increase in demand and also in new customer additions. But in the initial days when the lockdown was imposed, it was tough from both supply and delivery point of view. But I am pleased to note that we surmounted this initial hiccup and stabilised it in 4-5 days by working with the authorities. Now we are back to 100% delivery efficiency,” Shan Kadavil, co-founder, FreshToHome told ET Digital.He explained how operations during this period required extra care of safety and hygiene protocols. The FreshToHome team deep cleaned the vehicles and processing centre premises and equipment twice a day. The firm also regularly monitored the temperature of all its delivery and processing centre personnel.“We announced no-contact delivery to customers by insisting on no cash-on-delivery payment . Even in pre-corona days we were getting 50% CODs. It was a hard decision, but we took it for the benefit of our customers and our delivery executives,” he said.Experiencing similar results, Licious has witnessed deliveries go up 2x times with a 30 per cent increase in average order value from customers.“Across Bengaluru, Hyderabad, Delhi-NCR, Chandigarh, Mumbai, Pune and Chennai, we have witnessed a 300 per cent surge in demand during the lockdown period,” Gupta said.Gupta claimed that Licious adopted a global standard of food safety and quality management long before the Covid crisis during the initial days of the company. This includes vaccinating workers in production sites routinely every six months and getting frequent health-checks.The Licious team also took decisive steps when the nationwide lockdown was announced such as housing 600 employees in a resort close to the production center. “Since then, their movement has been restricted to and fro the Licious processing centre only. This ensured that the people handling our products were the safest and most immune,” he said.Behind the brilliant sales figures of these meat delivery firms during the lockdown lie a myriad of challenges, slightly more pressing than the ones faced by online grocery platforms.Meat is a perishable product for some 24-36 hours and could not be stocked like some of the groceries. This, along with lockdown restrictions created a problem with sourcing raw materials for meat startups.“Sea food supply was severely impacted as coasts were closed, but thanks to our network of fishermen in the smaller coasts, we were able to guarantee availability of marine fish. Additionally, our own farms and partner farms in which we have around 2500 tonnes production annually, allowed us to ensure fresh water fish supply,” Kadavil said.He added that the impact was seen in mutton supply too due to closure of slaughterhouses, however, chicken supply was not disturbed.Deepanshu Manchandana, co-founder, ZappFresh also agreed to facing the heat of the supply chain blockage.“Yes, not all products are available, the supply chain is stressed overall due to on ground challenges of permissions and other factors, But things have improved in the last two weeks and gradually as we move forward it is becoming easier and back to the normal,” he told ET Digital.He added that they also faced problems with managing the blue collar workforce. But, the ZappFresh team soon took steps to ensure pick up and drops for workers, boarding, and lodging.“Incentives to bring back operation staff, covid insurance and other benefits brought back our team in confidence and back in action,” he said.According to Manchandana, ZappFresh saw a 700% increase in its web traffic during initial days as people had started hoarding.One of the common challenges among all businesses was a shortage of manpower as many labourers and delivery workers went home during the lockdown. “In the initial days of the lockdown, we saw a sharp decline in our delivery workforce & it was indeed a test of our business agility,” Gupta said.Licious lost 50% of its workforce, but was able to hire an additional 300 employees and are now back with 1.5 times of their original capacity.From this period onwards, both Kadavil and Gupta believe that there will be an increase in demand for quality food and brands which adhere to safety and hygiene norms. This gives an opportunity for the processed poultry meat segment to grow in the country. According to Harsha Razdan, Partner and Head, Consumer Markets and Internet Business KPMG in India, with Covid-19 , consumers will prefer to order meat that is untouched by hand rather than buying from the wet markets due to fear of infections.He told ET Digital that it would also help in optimising operations for meat startups. “As the volumes of processed meat increases, the need for a sustainable and cost efficient supply chain will increase. This will attract larger capacities being created in cold storages, climate controlled vehicles and will bring the cost down on account of economies of scale,” he said.In early March this year, it was reported that the poultry industry in the country was hit hard as rumours linking coronavirus and chicken spread like wildfire through social media platforms. The price of a chicken fell from Rs 80 to Rs 20 and the jobs of two crore people employed in the industry were on line.This, however, did not impact the sales of Licous and FreshToHome. “Largely customers are evolved to understand that Corona is an airborne virus, though there is a small percentage who stay away from meat during these times. Our customers especially knew we uphold the highest standards of quality in terms of hygiene, packing and sell only no-added chemicals products.” Kadavil said.Talking on similar lines, Gupta said that there was no adverse impact on its sales following the rumors. “In fact, sales only grew as people started buying better quality and safer food products from trusted brands like us,” he said.Even for ZappFresh, Manchandana said the impact on sales was temporary, for a week or ten days.In the meantime, the rumor gave a little push to Udaipur-based Gooddot, an alternate meat startup. “Just before the lockdown, we had seen around 60% of spike in our platform,” said Abhishek Sinha, CEO, Gooddot.He added that the increase in demand was not just seen in India, but also across other countries as he believes more and more people are looking at plant-based meat options.“Over time, an organic outreach is happening. People are coming to us and enquiring about different kinds of alternate meat options,” he said.Apart from a surge in demands, Gooddot has also been able to increase its team during the lockdown.When asked if people who have shifted their diet to the alternate meat will maintain the same perspective and habits once the lockdown is over, Sinha believes it will be a bit of both.“The coronavirus is not directly linked to meat and therefore there will always be people who will make an end to the rumors and share the correct knowledge. However, one cannot underestimate the magnitude of the problems the viruses can create. In the US, major meat processing companies have become coronavirus hotspots. The workers there work in unhealthy conditions and under close proximity. Situations like these lead people to explore other meat options,” he said. | nationwide lockdown has snapped supply chain and delivery channels. meat delivery firm Licous resorted to airlifting meat produce. the company has now been able to stabilize the supply chain in 4-5 days. the lockdown has given momentum to online food deliveries in india. the online meat delivery industry has also come out winners. a number of startups have been able to cash in on the lockdown. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/in-investing-you-get-what-you-deserve-not-what-you-want-heres-why/articleshow/76231220.cms | ET Bureau
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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 | 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. the Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery. | Positive |
https://economictimes.indiatimes.com/industry/auto/auto-news/evs-will-be-cheaper-than-combustion-vehicles-in-3-years-amitabh-kant/articleshow/73777163.cms | NEW DELHI: Electric vehicles will become cheaper than combustion vehicles in three years as the price of battery packs of EVs is expected to fall by almost 51 per cent per unit, NITI Aayog CEO Amitabh Kant said on Thursday.Kant was speaking at the Mobility Talk Corporate Conclave at the World Sustainable Development Summit (WSDS) 2020, TERI's annual flagship event being held in the capital."Electric vehicles will become much cheaper than combustion vehicles in three years. The price of battery packs of EVs is expected to fall to USD 76 per kilowatt hour (or unit) in three years, down from the present-day USD 156 per unit," he said.Reaffirming the national vision towards moving to clean mobility, Kant said, given its size and scale of growth potential, Indian industry must be the biggest driver of change to make the country the centre for manufacturing EVs."There are two challenges to address: to ensure new form of urbanisation which is based on public transportation, and to ensure India doesn't lose out among global manufactures of tomorrow," Kant said.Representatives from the auto industry in the session welcomed the direction given by the NITI Aayog CEO, and sought clarity on pathways and policy that the government is looking to take on EVs.They urged the government to quickly develop a road map, whether to focus on hybrid or fully electric mobility, and policies that can promote indigenous research and development.Casting his vote in favour of strengthening public transport, Kant said it is essential that innovative and sustainable development is backed by embedding the cities with public transportation and not by private vehicles.He also stressed on the use of CNG-based transport for travel within cities, liquefied natural gas (LNG) for intercity, and in the long-run, a focus on hydrogen as fuel, especially for public transport.TERI DG Ajay Mathur said there is a need to decarbonise key sectors such as road economy and in the process push a transition to 100 per cent green electricity-based mobility."In order to move towards a shared, connected and zero-emission world, and to realise the full benefits of EVs, it is important that the battery is charged with clean power and not fossil power," he said. | NITI Aayog CEO amitabh Kant says electric vehicles will become cheaper in three years. he says the price of battery packs of EVs is expected to fall by almost 51 per cent per unit. he was speaking at the Mobility Talk Corporate Conclave at the WSDS 2020. he said the government must quickly develop a road map on EVs. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/market-movers-financials-lead-burger-king-tumbles-96-stocks-turn-overbought/articleshow/79779081.cms | MUMBAI: Financials drove benchmark equity indices to yet another record highs on Thursday, in a session which saw Nifty forming an indecisive candle again, implying that the level of 13,673-80 needs to be respected on Friday or else a halt in the ongoing rise may set in.Market barometer Sensex advanced 224 points to 46,890 points, while peer Nifty climbed 58 points to close at 13,741 points.Among stock-specific action, Burger King saw extreme swings in the day as it hit the upper circuit in the early trade, and tumbled by its daily limit in the afternoon.“Sectoral rotation is back in limelight. Intraday reversal of momentum in Burger King dampened spirits to some extent. Advance decline ratio went into the negative suggesting profit taking by traders,” said Deepak Jasani, Head of Retail Research, HDFC Securities.“Broader markets could continue to be rangebound while Nifty could still rise another few hundred points,” he added.Shares of Burger King India continued its uptrend until the afternoon and were up 10 per cent to a new high of Rs 219.15, but later hit lower circuit as they tumbled 10 per cent to Rs 179.35. The stock is still up nearly 3 times from its issue price of Rs 60.Financials contributed the most to Sensex’s gains with mortgage lender Housing Development Finance Corp (HDFC) rising 2.92 per cent, while private lender HDFC Bank advanced 2.17 per cent. Top NBFC Bajaj Finance hit a new all-time high of Rs 5,300, and closed 2.74 per cent higher at Rs 5,284.25.By 4 pm, the Rs 541-crore initial public offer (IPO) by Mrs Bectors attracted a whopping 197.43 times subscription on Day 3, on the back of robust demand from all categories of investors. The issue received bids for 2,61,31,98,600 shares, against the issue size of 1,32,36,211 shares.Despite frontline indices logging new highs, the numbers of declining shares on the BSE outnumbered advancing ones in the ratio of 1.1:1, indicating that traders locked in gains.Promoters Adani Tradeline LLP revoked the pledge on 8,70,000 shares of Adani Transmission on December 14. The stock shed 1.16 per cent to Rs 426.50.Promoter Vijaya Sivarami Reddy Vendidandi sold 1,80,000 shares of Spandana Sphoorty Financial on December 16. The stock dropped 0.94 per cent to close at Rs 728.60.A total of 322 stocks scaled 52-week highs on the BSE. These included 3i Infotech, Adani Enterprises, Asian Paints, Ashok Leyland, Berger Paints, Bajaj Finance, Dixon Technologies, EID Parry, Voltas and Titan Co, among others.As many as 401 stocks rose by their daily limit on the BSE. These included Suven Lifesciences, Burger King India, Suryachakra Power & Cox & Kings, among others.On the back of relentless buying, as many as 96 stocks turned ‘overbought’ as they crossed above the 70-mark on the RSI indicator. These included Bombay Dyeing, Motherson Sumi Systems, Orient Cement, Jubilant FoodWorks, HEG and JK Paper, among others.According to Nagaraj Shetti, Technical Research Analyst, HDFC Securities, the short-term trend of Nifty continues to be range bound with positive bias and similar type of movement is expected in the coming session.“The upside target for the Nifty remains around 13,900-14,000 levels, which corresponds to multiple long term trend line resistances. Immediate support is placed at 13,660,” said Shetti. | Sensex advanced 224 points to 46,890 points, while peer Nifty climbed 58 points to close at 13,741 points. shares of Burger King India continued its uptrend until the afternoon and were up 10 per cent to a new high of Rs 219.15. shares of top NBFC Bajaj Finance hit a new all-time high of Rs 5,300, and closed 2.74 per cent higher at Rs 5,284.25. | Positive |
https://www.moneycontrol.com/news/business/markets/opec-will-take-responsible-approach-to-virus-saudi-energy-minister-4976551.html | Saudi Arabia's energy minister said on Tuesday he was confident that OPEC and its partner oil-producing nations, the so-called OPEC+ group, would respond responsibly to the spread of the coronavirus.
He also said Saudi Arabia and Russia would continue to engage regarding oil policy.
"Everything serious requires being attended to," the minister, Prince Abdulaziz bin Salman, told reporters at an industry conference in Riyadh.
An OPEC+ committee this month recommended the group deepen its output cuts by an additional 600,000 barrels per day.
Saudi Arabia supports the further oil production cut, but Russia is yet to announce its final position on the matter.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
The minister said he was still talking with Moscow and that he was confident of Riyadh's partnership with the rest of the OPEC+ group.
"We did not run out of ideas, we have not closed our phones. There is always a good way of communicating through conference calls," he said.
Regarding the coronavirus, which has impacted OPEC member Iran, he said OPEC+ members should not be complacent about the virus but added he was confident every OPEC+ member was a responsible and responsive producer. The flu-like SARS-CoV-2 virus which first broke out in China has now spread to more than 20 countries. "Of course there is an impact and we are assessing, but we'll do whatever we can in our next meeting and we'll address that issue, UAE energy minister Suhail al-Mazrouei said at the same industry conference. Saudi Aramco CEO Amin Nasser on Monday said he expected a short-lived impact on oil demand and consumption to rise in the second half of the year."We think this is short term and I am confident that in the second half of the year there is going to be an improvement on the demand side, especially from China," he told Reuters.
Aramco had seen minimal impact from a drop in oil demand due to coronavirus spread, he said during a panel discussion in Riyadh.
"We expect by the second half things are back to normal. There is an impact on markets but Aramco has dealt with many crises before," Nasser said, adding the impact on the company was "minimal".
The CEO of Abu Dhabi National Oil Company (ADNOC) also described the impact as "temporary" at the same event.
"Nobody can deny that there has been a temporary impact from coronavirus, we have seen that on global markets in terms of demand," Sultan Al Jaber said.
Oil climbed on Tuesday as investors sought bargains after crude benchmarks slumped almost 4% in the previous session, although concerns about the global spread of the virus capped gains. | a u.s.-based company has developed a vaccine to combat the coronavirus. the u.s. has a'very good' record for delivering a vaccine to people with a disease. a vaccine works by mimicking a natural infection. a vaccine helps quickly build herd immunity to put an end to the pandemic. | Positive |
https://economictimes.indiatimes.com/news/international/business/uks-boris-johnson-says-he-will-double-down-on-spending-plans/articleshow/76685855.cms | LONDON: British Prime Minister Boris Johnson said he planned to double down on his plans to increase public investment and a return to austerity would be a mistake as the country tries to recover from the coronavirus hit to the economy.Johnson told Times Radio on Monday that he wanted a " Rooseveltian " approach to the economy, a reference to former U.S. President Franklin D. Roosevelt whose " New Deal " programme helped the United States recover from the Great Depression. | Boris Johnson says he wants a " Rooseveltian " approach to the economy. he says a return to austerity would be a mistake as the country tries to recover. he says he wants to increase public investment. he says he wants to be a "'''''''''''''''''''''' ' | Positive |
https://www.moneycontrol.com/news/business/economy/india-gdp-data-highlights-growth-falls-to-3-1-agriculture-sector-grows-at-5-9-5334511.html | The government on Friday released January-March GDP figure. The Indian economy grew at 3.1 percent in the January-March quarter (Q4) of 2020, its slowest pace in at least two years. The GDP growth was recorded at 5.8% in the corresponding quarter of 2019-20.
For the full FY20 financial year, the number came down to 4.2 percent from 6.1 percent in 2018-19.
The agriculture sector grew at 5.9 percent in Q4, compared to 1.6 percent in the same quarter a year ago.
Nominal GDP growth fell to 7.2 percent in FY20 compared to 11 percent last year.
Farm Sector grew at 5.9 percent in Q4 as compared to 1.6 percent growth in the year-ago quarter. Growth in the mining sector was 5.2 percent vs minus 4.8 percent last year.
The manufacturing sector contracted by 1.4 percent as compared to a growth of 2.1 percent year-on-year. The construction sector also registered degrowth of 2.2 percent as compared to 6 percent growth last year.
India’s per capita income in real terms during 2019-20 was estimated to reach Rs 94,954 as compared to Rs 92,085 in the year 2018-19, growing by 3.1 percent during FY20, which was lower compared to a growth of 4.8 percent during 2018-19.
At current prices, the country’s per capita income (average income earned per person) during FY20 reached Rs 134,226, showing a rise of 6.1 percent as compared to ₹ 1,26,521 during 2018-19.
The government says GDP estimates are likely to undergo revision.
India's core sector output in April contracted an unprecedented 38.1 percent in April as the country was under lockdown for over two months due to coronavirus.
Cement was the worst performer with growth contracting 86 percent versus a 25.1 percent contraction in March.
The following was the performance of the other key sectors:
Coal Output Growth At -15.5% Vs 4% (MoM)
Crude Oil Output Growth At -6.4% Vs -5.5% (MoM)
Natural Gas Output Growth At -19.9% Vs -15.1% (MoM)
Refinery Products Output Growth At -24.2% Vs -0.5% (MoM)
Fertilizers Output Growth At -4.5% Vs -11.9% (MoM)
Electricity Output Growth At -22.8% Vs -8.2% (MoM)
The nationwide lockdown kicked in from March 25, and its actual impact on the economy will show up in the subsequent months when businesses screeched to a standstill.
The Reserve Bank of India (RBI) recently lowered India's growth forecast for the ongoing fiscal due to the coronavirus crisis. "The GDP growth in 2020-21 is expected to remain in the negative territory with some pick up in the second half," RBI Governor Shaktikanta Das had said last week. | the economy grew at 3.1 percent in the January-March quarter (Q4) of 2020. the growth was recorded at 5.8% in the corresponding quarter of 2019-20. agriculture sector grew at 5.9 percent in Q4, compared to 1.6 percent in the same quarter a year ago. growth in the mining sector was 5.2 percent vs minus 4.8 percent last year. | Positive |
https://www.moneycontrol.com/news/business/economy/india-will-bounce-back-once-economy-opens-up-feels-prem-watsa-5348561.html | Representative Image
No country has the resources to be able to close the economy for long, thinks Prem Watsa, Canadian investor and founder Chairman and CEO of Fairfax Financial Holdings. He added that since countries are now opening up, there should be significant increase in activity within a year’s time.
India’s economy will 'bounce back' once the lockdown is lifted, Watsa told The Economic Times. “We have to be careful about the hotspots. Once the economy opens up there will be a lot of pent up demand,” he noted, citing China as an example, which rebounded post relaxation of the lockdown with oil demand back to pre-COVID-19 levels.
On India’s financial stimulus package, Watsa said the government has been fiscally prudent and provided stimulus that is necessary. “The government can only do so much. Its individual businesses and their hard work which creates jobs. We cannot do that if the economy is closed. You have to open up the economy so that it frees the average Indian to take advantage of opportunities,” he added.
Watsa was also optimistic about testing, treatment and a vaccine for coronavirus as these “are being developed all over the world.” He added that the United States, Canada and India has “lots of opportunity to buy stocks at reasonable prices.”
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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
On his company’s investment in IIFL, Watsa said the company will survive, adding that it is an “outstanding company going through a down cycle.” Adding: “We have been shareholders in this company for 10 years. It has earned 15-16 percent RoE for the last 10 years, had minimum credit losses (0.6 percent) and its business is diversified. In spite of its record and excellent management, it is selling at three times earnings – down more than 50 percent this year. In times like this, the stock market provides an opportunity to buy and hold IIFL Finance for the long term. We have not sold a single share in any of the three IIFL companies.”
Watsa felt that IIFL’s track record of loan losses is good and in the coronavirus situation while they have to defer payments from borrowers, they still have to pay lenders.
On the plan to invest $5 billion in India, he said the plan is to invest more over the next five-to-six years, adding that India’s potential has not changed and will “come back” once the economy opens up again. He also added that the company would look at investing in Indian airports and even more through the Bangalore International Airport, which is currently building a second runway.
Follow our full COVID-19 coverage here | prem watsa, founder chairman and CEO of Fairfax Financial Holdings, believes no country has the resources to be able to close the economy for long. he said once the economy opens up there will be a lot of pent up demand. he also optimistic about testing, treatment and a vaccine for coronavirus as these "are being developed all over the world" | Positive |
https://www.financialexpress.com/lifestyle/health/un-report-cites-isro-efforts-in-assisting-indian-government-to-contain-covid19-pandemic/2131991/ | A report by the United Nations has cited efforts by Indian Space Research Organisation (ISRO) to leverage its geospatial tools in assisting the central and state governments towards containing the COVID-19 pandemic and supporting sustainable development projects in the country.
The UN report ‘Geospatial Practices for Sustainable Development in Asia and the Pacific 2020’ cites the role being played by ‘BHUVAN’, the national geo-portal developed and hosted by ISRO comprising of geo spatial data, services and tools for analysis, in combating COVID-19.
“The Government of India and its state governments have taken several steps to contain the COVID-19 pandemic. ISRO has assisted in this by providing and leveraging geospatial tools, in particular BHUVAN — the Indian Geo-Platform,” the report said.
It added that the geospatial information platform provided service in six aspects: tracking, identifying hotspots, vegetable markets, food needed, home isolation and pollution.
“Additionally, as India needed a dashboard to better understand the current circumstances in the country, ISRO customised the Geo-portal and developed ‘Bhuvan- COVID-19’ at a national level to track the pandemic and update the public on the current situation,” the report said.
The report, released on Wednesday by the UN Economic and Social Commission for Asia and the Pacific (ESCAP), showcases examples from the region’s countries employing applications of space technology to advance sustainable development.
It said that Asian and Pacific nations are increasingly leveraging space technology and geospatial information to respond to challenges on the ground, including in their efforts to contain the spread and mitigate the impact of the coronavirus pandemic.
The report also said that India has been making significant progress in responding to the demands of today’s cities by incorporating robust space technologies and GIS (geographic information system) into the urban planning, transport management and traffic navigation techniques.
It said the development of Road Asset Management system for National Highways (NHs) is a flagship project by the National Highways Authority of India in association with the Indian Space Research Organisation and the World Bank.
“Bringing both public and private funded roads under one umbrella, the main objective of this project is to assist in accurate and scientific maintenance planning, enhance road safety measures and plan the development of the NH network in India,” the report said.
The report also noted that ESCAP, with the support of India, regularly facilitates young professional officials from developing countries in the region to join a nine month post-graduate course on remote sensing and the Global Navigation Satellite Systems at the Centre for Space Science and Technology Education in Asia Pacific, in Dehradun.
Some of the other practices undertaken by countries in the region and cited in the report include ‘Night-light’ satellite images monitoring the impact of lockdowns, ‘heatmaps’ to chart out communities vulnerable to the pandemic and its socio-economic consequences, real-time situational analysis, and dashboards integrating a wide gamut of critical information to support decisions are some of the practices cited.
The examples, according to the report, show how space applications and geospatial data have played an important role in providing essential location-based and temporal data to make an “overall data map” and snapshots on the COVID-19 pandemic for policymakers and the public.
In addition, combining spatial data from contact tracing, quarantining, and social distancing with digital solutions and artificial intelligence (AI)-driven risk analytics can help enhance community resilience.
Such applications can also help in the recovery phase to build back better, by providing an evidence base for decisions on the easing of lockdown and the resumption of economic and social activities, the report added.
“The effective integration of geospatial data, with existing statistics and ground-based information, will be key to delivering the timely data needed for governments, businesses, communities and citizens to make evidenced-based decisions,” Executive Secretary of ESCAP Armida Salsiah Alisjahjabana said.
The report, issued two years after Asian and Pacific countries endorsed an ambitious plan of action on use of space technologies to support sustainable development also provides a baseline for assessing future progress in the region.
In addition to presenting an overview of the status along thematic areas such as disaster risk, natural resource management, connectivity, social development, energy, and climate change, the report also highlights the importance of multi-stakeholder partnerships.
“Many regional and country-based efforts are sparking innovations that attract both public and private capital, supporting start-ups and spinoffs from space applications research and pilots,” said ESCAP.
The report outlined seven key recommendations for policymakers to integrate applications of geospatial information into their planning and actions towards achieving the Sustainable Development Goals (SDGs). | report by the united nations cites efforts by Indian Space Research Organisation (ISRO) to leverage its geospatial tools. 'BHUVAN', the national geo-portal, was used to contain the pandemic. report said that the geospatial information platform provided service in six aspects: tracking, identifying hotspots, vegetable markets, food needed, home isolation and pollution. | Positive |
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Talking to ET Now , says one lakh crores of market stabilisation bills are due for maturity in March. So, actually a surge of liquidity will be coming back into the system from here to end of March.Edited excerpts:We have had a perfect storm of negative news for bond markets over the last few months. Of course, the inflation has been the one underpinning that along with the global rise in yields and commodity prices but the driving force really has been the fiscal slippage and the fact that the market is now very uncertain as to how the government is going to complete its market borrowing programme.Given the backdrop in which the RBI has been advising banks to reduce their interest rates risk, who is going to buy Rs 10 lakh crore of bond issuance by the centre and states next year and that has really the key reason why markets have been under tremendous pressure. There is both macro inflation worries and concerns about the fisc stance and supply-demand scenario.You are right, liquidity has been a contributing factor but on the flip side, we must remember that about one lakh crores of market stabilisation bills are due for maturity in March. So, actually a surge of liquidity will be coming back into the system from here to end of March and then of course the government which is today sitting on a large cash balance with the RBI is also likely to spend in the new financial year.When you look at it from 3-6 months’ perspective, our own view is that liquidity will come back into the system. Two factors are probably going to keep liquidity draining out –the ongoing increase in the currency in circulation and the other is that the FIIs have been selling and especially in equities. Therefore, the balance of payments on a monthly basis may see a draw down in reserves which will lead to some liquidity tightening. On balance, we should see liquidity situation improving over the next couple of months and that should provide relief for the money market in short-term bonds. This is not going to directly have a positive impact on long bonds, especially the government securities.Last year, when there was a surge of build-up in reserves, the RBI sterilised that buildup in reserves through OMO sales of securities. More recently, we have seen reserves drop and RBI may choose to do open market purchases rather than sales. That means they had to buy bonds in the market to infuse some liquidity and that could provide much needed support for the bond markets.Last year, we had higher deficit and that the RBI selling long-term bonds into the market certainly pressured the yields in the second half of the financial year up to now. If RBI sends a signal that they are going to use OMOs to support the market to address liquidity, markets will take a lot of heart from that. This is one trigger that we could see from the RBI in the next few weeks.Most of the factors are going to be domestic and from our own perspective, we did not see the blowout to 780 happen and I think bond yields are fairly priced relative to inflation. Inflation is at 5% and your 10-year is close to 8%. This is reasonably priced but the market is more concerned right now about the supply and demand situation and we must remember that in February and March, when there are no central government securities up for auction, we are seeing this kind of pressure.So, what happens when the new financial year starts and you get Rs 20,000-30,000 crore per week of G-Sec supply hitting the market? That is what the markets are really worried about. If the RBI were to do something to address the market concerns on this, then there will be value buyers. Close to 8% is really interesting from a buying perspective. We also need to remember that if RBI genuinely cares about the 4% inflation target and achieves it over the next one to two years, then we are talking about 4% real yields on the 10-year which is a fantastic level if you were to look at it from buying perspective.The short tend is significantly likely to outperform compared to the long end and reasons for this are two-fold – one, while the long end looks fairly valued, I do not see too many triggers for a sharp pull back in yields which will help us make money there.At the short end to the curve, clearly the market is worried about RBI rate hikes and tight liquidity. As liquidity comes back, that is the segment where we expect to see yields drop. That is the segment which we really like. Investors are not going to get compensated for higher duration through yields. The yield curve which you see from overnight to five years is reasonably steep but after five years, it is quite flat and that suggests that there is no real benefit to running long duration. So stay short, stay in corporate bonds which are still outperforming relative to government securities. That is how our portfolios are positioned and that is what we would recommend to investors. | one lakh crores of market stabilisation bills are due for maturity in March. so, actually a surge of liquidity will be coming back into the system. the government which is sitting on a large cash balance with the RBI is also likely to spend in the new financial year. 'we should see liquidity situation improving over the next couple of months and that should provide relief for the money market in short-term bonds, especially the government securities' | Positive |
https://www.moneycontrol.com/news/business/earnings/britannia-q2-jumps-16-yoy-to-rs-303-crore-reports-good-operational-performance-3150841.html | live bse live
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Britannia, on Monday, reported a net profit of Rs 303 crore for the September quarter. This is a jump of 16 percent compared to the profit reported during the same quarter of last year.
The company reported revenue of Rs 2,869.59 crore during the quarter against Rs 2,545.29 crore posted last year. This is a rise of 13 percent year on year.
At an operating level, the earnings before interest, taxes, depreciation and amortization (EBITDA) rose to Rs 454.4 crore in Q2, a jump of 20 percent from Rs 377.6 crore reported last year.
Meanwhile, the operating margin was reported at 15.8 percent, up from 14.8 percent last year, a rise of 100 basis points.
Commenting on the results, Varun Berry, its managing director said, “This was the fourth successive quarter of double-digit volume growth primarily due to our investment in brands, multi-media campaign to bring alive the new identity and celebrating 100 years and widening our distribution network through focus on direct reach, rural market and weak states. In the base business we continued our premiumisation and innovation journey with the launch of “Pure Magic Chocolush,”, “Good Cashew Almond” and “Tiger Choco Cookies” and renovation of 50-50 & Bourbon."
Berry also said, "In line with our goal to become a “Global Total Foods Company” we launched two new categories “Cream Wafers” and “Flavoured Milk Shakes” in Tetra Packs," he added.
Further, the packaged food major's international business grew by a healthy double-digit despite slow-down in key geographies of Middle East and Africa.
Project work at the Greenfield unit in Nepal is progressing and is expected to be commissioned in the fourth quarter of the current year.
On the commodity front, Britannia witnessed marginal inflation in the prices of key raw materials.
"Our cost efficiency program and endeavour to leverage fixed costs have helped us improve our profitability”. We have progressed well in our journey of building technologically superior factories and the 1st Biscuit line at the Integrated Food Park in Ranjangaon has been commercialized," Berry said in an exchange filing.
The stock gained 5 percent in the past one month, while in the past three days, it rose over a percent. At 15:18 hrs Britannia Industries was quoting at Rs 5,772.10, up Rs 18.25, or 0.32 percent, on the BSE. It touched an intraday high of Rs 5,844.70 and an intraday low of Rs 5,599.25. | Britannia reports net profit of Rs 303 crore for the September quarter. revenue of Rs 2,869.59 crore against Rs 2,545.29 crore posted last year. operating margin reported at 15.8 percent, up from 14.8 percent last year. global business grew by a healthy double-digit despite slow-down in key geographies. a soaring rupee of 1.2 per cent helped boost the stock price. | Positive |
https://www.financialexpress.com/money/developers-hail-extension-of-credit-linked-subsidy-scheme-say-fence-sitters-will-now-buy-homes/1959317/ | A majority of developers on Thursday welcomed the extension of the Credit Linked Subsidy Scheme (CLSS) with the infusion of Rs 70,000 crore that will give a boost to affordable housing and also benefit the middle income group.
Talking about the government’s move, Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “Today’s announcement has reemphasized on government’s agenda of promoting ‘Affordable Housing’ and ‘Housing for All’. The extension of CLSS for another year will help demand for the affordable housing sector to inch back as and when the economy starts to revive. This in turn will help the construction sector to restart operations at the earliest possible. However, for demand for housing to return, irrespective of the category, the economy must start growing at a stable rate providing individuals financial security.”
Avneesh Sood, Director, Eros Group, said, “The Rs 70,000-crore boost to the housing sector and middle-income groups through the extension of CLSS is a critically important move which eliminates the uncertainty which surrounded the timelines for constructing 50 million new housing units by 2022 through the PMAY, of which 30 million units are likely to be constructed in rural areas, and the rest in urban areas. The decision is another big step to lift sectors like steel, housing material, and construction sector that contributes to increased activity on the supply side.”
This initiative is expected to benefit the middle-income group in the form of new job creation and result in enhanced economic activity that would contribute to improvement in the demand side.
Developers also feel that this move will prompt many of the fence sitters to buy homes in the near future.
Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com, said, “The extension of the CLSS scheme by one year will prompt many of the fence sitters to buy homes at the earliest and thereby increase demand for affordable housing wherein industry has max unsold inventory across the country. This will also help sustain employment as real estate supports close to 200 allied industries. The proposed affordable rental housing under PPP is also a welcome step. This will help in effectively tackling any migrant labourers issues in the future.”
Developers say the CLSS extension till March 2021 will benefit a lot of lower and middle class families under the Pradhan Mantri Awas Yojana.
“This scheme has already benefitted more than 3 lakh people. The extension of CLSS should see demand for another 2.5 lakh affordable homes. This will definitely increase the demand and hence is good news for the affordable segment. The present government has always shown its intention to provide Housing for All. In fact, the second announcement was also related to the weaker section of the society by entering into PPP to build rental housing complexes to solve the issues for migrant workers and urban poor. Both the steps will provide benefit to the allied industries too,” said Pradeep Aggarwal, Founder & Chairman, Signature Global and & Chairman – ASSOCHAM National Council on Real Estate, Housing and Urban Development.
Vikas Garg, JMD, MRG World, observed, “The focus of the government is on providing housing to everyone in the country. It has been communicated over the years through various steps that this government has taken, including giving industry status to affordable housing. The latest announcement by the FM in the wake of the pandemic also shows that it wants people to buy houses and this can be achieved by this announcement as fence sitters too will come and buy.”
The announcement of Affordable Rental Housing Scheme for migrant workers and urban poor was also hailed was some developers, who said that the affordable rental scheme is a step towards addressing the issue of housing of urban poor and migrant workers and will provide them with access to quality accommodation and security.
Uddhav Poddar, MD, Bhumika Group, said, “The announcement by the Hon’ble Finance Minister of a scheme for affordable rental housing for migrant workers by converting government-funded housing in cities into Affordable Rental Housing Complexes (ARHC) under the PPP mode through concessionaire is interesting and we look forward to more details of the same.” | developers welcome the extension of the credit Linked Subsidy Scheme (CLSS). the infusion of Rs 70,000 crore will give a boost to affordable housing. developers also feel that this move will prompt many of the fence sitters to buy homes in the near future. the extension of CLSS till march 20th will help the affordable housing sector to inch back as and when the economy starts to revive. | Positive |
https://www.businesstoday.in/markets/market-perspective/sensex-rises-600-points-nifty-closes-at-11662-five-factors-behind-the-rally/story/418051.html | Domestic benchmark indices ended higher on Tuesday amid positive global equities. Extending gains for the fourth straight session, Sensex ended 600 points higher to 39,574 and Nifty gained 159 points to settle at 11,662. Yesterday, the 30-share benchmark Sensex ended 276 points higher to 38,973 and Nifty gained by 86 points to 11,503.
Banking and financial stocks rallied and traded as the top gainers today, followed by heavy buying in realty and media index, while metals, pharma and FMCG ended marginally bearish.
All 30 Sensex constituents were trading in the green. Index heavyweight HDFC led the rally on the Sensex chart, followed by Asian Paints, IndusInd Bank, HDFC Bank, Mahindra and Mahindra and State Bank of India.
Ajit Mishra, VP - Research, Religare Broking said,"The bulls continued to dominate as the benchmark indices registered strong gains led by supportive global cues. The broader markets underperformed for the second day in a row but both Midcap and Smallcap managed to end higher by 0.5% each."
Equity market indices ended majorly bullish largely on the following factors:
Q2 earnings season
IT major Tata Consultancy Services is set to begin the Q2 results season on 7 October followed by Wipro, Infosys and HCL Tech on October 13, 14 and 16, respectively. Investors, as well as brokerages, are betting big on IT firms ahead of the results for the September-ended quarter.
There was buying pressure seen in the latter half in IT and banking stocks today, as investors turned buoyed with companies providing their positive quarterly updates and sales figures, ahead of the Q2 earnings results. With demand normalising to pre-COVID-19 levels on the back of relaxations in virus indices lockdown, many market analysts are expecting margins to be resilient
Brokerage CLSA rated major names in the information technology sector bullish and also advised investors to focus on quality stocks with a strong order book.
Vinod Nair, Head of Research at Geojit Financial Services said,"Market is booming to a new level in anticipation of better Q2FY21 results, clear improvement in domestic economic data and uptick in the global market. The IT and Banking sector will be in focus, in the coming weeks, in expectation of real benefit in Q2 result. Banks are showing healthy deposits & advance growth, with signs of recovery in growth to pre-Covid level, while positive SC verdict is also expected next week regarding moratorium."
PMI data
Amid relaxations in Covid-19 restrictions, Indian service sector output broadly stabilised in September but remained in the contraction zone (below 50)
As per data released by IHS Markit, PMI (Purchasing Managers' Index) came in at 49.8 from 41.8 in August and 48.7 in September 2019. The seasonally adjusted India Services Business Activity Index rose for the fifth straight month in September, indicating that service sector activity has recovered to pre-COVID levels.
"The relaxation of lockdown rules in India helped the service sector move towards recovery in September. Participants of the PMI survey signalled broadly stable business activity and a much softer decline in new work intakes," said Pollyanna De Lima, Economics Associate Director at IHS Markit.
Moreover, the Composite PMI Output Index rose from 46.0 in August to 54.6 in September, signalling a marked rate of activity growth across the private sector economy.
MPC meet outcome
Markets also turned bullish ahead of the Monetary Policy Committee (MPC) meet to be held from October 7 to October 9, 2020. It was earlier scheduled from September 29 to October 1. The Reserve Bank of India on Tuesday said that it will also announce the outcome of its bi-monthly policy rates on October 9.
RBI is expected to keep key interest rates unchanged to maintain low inflation amid the pandemic induced recession. Investors will also be keenly awaiting the central bank's guidance on how the economy is performing amid the coronavirus pandemic.
The MPC had been given the mandate to maintain annual inflation at 4 percent until March 31, 2021, with an upper tolerance of 6 percent and a lower tolerance of 2 per cent.
"The RBI has announced the new dates for the MPC meet and the outcome will be out on October 9. We thus expect the rate-sensitive pack to remain volatile in the near future," said Ajit Mishra, VP - Research, Religare Broking.
Positive global cues
Asia-Pacific stocks were mostly higher in morning trade as the Reserve Bank of Australia (RBA) kept its current policy settings on hold
In Wall Street, stocks closed higher yesterday, as focus shifted on the possibility of a fiscal stimulus package. Sentiments of the global markets were after analysts suggested that the much expected additional stimulus aid from the US may come as soon as next week. Investors turned buoyed worldwide following news that Democrats and Republican lawmakers were continuing their work towards a deal on coronavirus relief spending. On the speech front, the US Fed Chairman is scheduled to speak today.
The market further cheered following reports that doctors confirmed that President Trump would be discharged on Monday evening. He had contracted Covid-19, along with a number of his staff last week.
"Anticipation of US President Trump recovering from COVID and of Democrats and Republicans reaching a consensus on a fiscal stimulus package seems to be buoying risk sentiment," said Abhishek Goenka, Founder and CEO, IFA Global.
Technical outlook
In today's session, Nifty has breached 11,600-11,620 levels to continue with its bullish momentum and closed at 11,662.
On closing today, Manish Hathiramani, proprietary index trader and technical analyst, Deen Dayal Investments said, "The Nifty closed in stellar form. It also managed to cross its intermediate high of 11618 which was made on 16 September 2020. We should now achieve 11800 which is the next resistance level. The trend and sentiments are bullish and we could even achieve 12000 once we get past 11800."
Motilal Oswal Financial Services said in its note," In Sept, Nifty concluded the month at 11073 levels, with loss of 1.23% over its August month's close. Last week, the index bounced by 3.32% in the truncated week and formed a positive candle on a weekly scale.
The report said,"Currently, Nifty is giving breakout from Falling Trend line on the daily chart and a sustainable move above 11500 may result in a directional move towards 11750 - 11800 zone. Momentum oscillator RSI turned northward on both daily and weekly scale, indicating sideways to positive momentum in coming days. At the current juncture, immediate support for Nifty is placed at 11333 then 11111 levels, while resistance can be seen around 11790 levels."
The report added, "HFY21 (Apr-Sep'20) has turned out to be the best first half for the Nifty over the last decade, of course, aided by the low base, post-correction in Mar'20."
BoB in its weekly wrap said,"Global manufacturing PMIs and US consumer confidence supported higher global yields. Barring Nikkei and Shanghai Comp (flat), other global indices ended higher this week on expectation of the US fiscal package. Sensex (3.5%) surged the most in a truncated week, as the government announced unlock 5.0 guidelines."
Stocks in news: Adani Ports, PVR, Infibeam Avenues, Britannia, Tata Motors
Share Market News Live: Sensex rises 350 points, Nifty at 11,610; HDFC twins, Bajaj Finance top gainers | domestic benchmark indices end higher on Tuesday amid positive global equities. banking and financial stocks rally and trade as top gainers. metals, pharma and FMCG end marginally bearish. broader markets underperformed for second day in a row. ajit mishra, VP - research, said "bulls continued to dominate" | Positive |
https://economictimes.indiatimes.com/news/economy/infrastructure/union-minister-nitin-gadkari-kickstarts-11-highway-projects-worth-rs-20000-cr-in-haryana/articleshow/76959517.cms | Union Minister for road transport and highways Nitin Gadkari on Tuesday inaugurated and laid the foundation stone of 11 national highway projects worth over Rs 20,000 crore in Haryana.The minister further said that in the ongoing term of the BJP government, highway projects worth Rs 2 lakh crore will be developed in the State. In all, a total of 11 projects with a cumulative length of 669 km were kickstarted in a virtual meeting where Haryana Chief Minister Manohar Lal Khattar was also present.These projects are part of the new economic corridor in Haryana.Four major corridors are being developed in Haryana, which include two brownfield projects of Jind-Gohana-Sonipat and UP/Haryana Border-Rohna-Jhajjar. The other two are greenfield projects – Ambala-Kotputli 304 km and Gurugram Rewari-Narnaul-Rajasthan Border 132 km, Sukhbir Singh Sandhu, Chairman of National Highways Authority of India (NHAI) said, sharing details of ongoing projects in Haryana.In 2014, total NH length in Haryana was 2050 kilometre, which has now been brought up to 3237 kilometres, Sandhu said.Gadkari also said that states like Haryana and Punjab will play a key role in fuelling the ethanol economy in the country, making it a Rs 1 lakh crore market. He said that the government was working on “revolutionary” ideas to adopt cleaner fuel in the country, and state governments must work together with the Centre on this. | a total of 11 projects with a cumulative length of 669 km were kickestarted in a virtual meeting. the projects are part of the new economic corridor in Haryana. the government is working on'revolutionary' ideas to adopt cleaner fuel. the ethanol economy in the country will be a Rs 1 lakh crore market. a spokesman for the BJP government said the project is worth Rs 2 lakh crore. | Positive |
https://economictimes.indiatimes.com/industry/auto/auto-news/urus-shields-lamborghini-from-slump/articleshow/71303710.cms | MUMBAI: At a time when the Indian luxury car market is staring at its steepest decline, the Italian super sports carmaker Lamborghini is set to post a significant 30% rise in sales in 2019, led by its super sports utility vehicle Urus Lamborghini is expected to close 2019 with sales of over 65 units and will become the first super luxury carmaker in India to sell more than 50 vehicles in a year, spearheaded by the Urus.Sharad Agarwal, head of Lamborghini brand in India, told ET that in keeping with the car’s massive demand globally, it has been a runaway hit in India as well. He said the company has received over 50 bookings for the SUV and there is a waiting period of over 6-8 months.“Urus has helped us bring in new set of buyers. Over 70% of Urus buyers are first-time Lamborghini buyers, of which 10% are female. As against a sports car which is usually driven by individuals, we have seen significant number of buyers who use the Urus for family and many have a chauffeur to drive them around,” said Agarwal.The company said while the overall slowdown in the market has affected sentiment for even super luxury buyers; there are always buyers for differentiated product offerings such as Urus in the market place, which caters to multiple needs of buyers. The carmaker believes that strong sales at Lamborghini will help the super sports, or exclusive car market — priced above Rs 2.5 crore in 2019 — from slipping into negative zone at about 250 cars.On the back of doubling of volumes in 2018 at 45, Lamborghini will end 2019 with 65 cars. Agarwal also assured that despite the base getting higher, the carmaker can sustain double-digit growth in 2020 and is well on course to achieving a 100-unit per annum sales market in the 3 years.Lamborghini has a 40% market share in India which is among the highest enjoyed by the company in its crucial global markets.While Urus accounts for over 60% of the total volumes, Agarwal said the sales numbers of the sports car is likely to remain at the same level as last year at about 24 cars in 2019, and eventually it may drive many firsttime Lamborghini buyers to choose another Lamborghini sports car from its portfolio. | the italian carmaker is expected to post a significant 30% rise in sales in 2019. it will become the first super luxury carmaker in india to sell more than 50 vehicles in a year. the carmaker believes strong sales at Lamborghini will help the super sports, or exclusive car market — priced above Rs 2.5 crore in 2019 — from slipping into negative zone. | Positive |
https://www.businesstoday.in/markets/company-stock/psu-banks-rally-pm-modi-review-meeting-uco-central-bank-sbi-jump-5/story/411415.html | Shares of public sector banks (PSBs) were in upbeat mood with the Nifty PSU Bank index rising nearly 4 per cent in an otherwise weak market on Wednesday, ahead of Prime Minister Narendra Modi's scheduled meeting with the chief executives of state-owned and private banks.
Nifty PSU Bank index surged as much as 3.7 per cent in intraday trade and Nifty Bank index climbed nearly 1 per cent as against 0.76 per cent decline in the benchmark NSE Nifty. The BSE benchmark index Sensex was down 375 points or 0.98 per cent at 38,117, and the NSE Nifty was trading 86 points or 0.76 per cent lower at 11,214, tracking weak cues from global markets.
Bank of Maharashtra, UCO Bank, Central Bank of India, Jammu & Kashmir Bank were among top gainers from the Nifty PSU Bank index, gaining between 5-7 per cent today. State Bank of India (SBI), Bank of Baroda, Punjab National Bank, Union Bank and Bank of India were also trading higher in the range of 2-5 per cent on the NSE.
Also Read: Share Market News Live: Sensex down 300 points, Nifty at 11,260; HCL Tech, RIL, Nestle top losers
PM Modi is slated to chair a high-level meeting with chiefs of banks and Non-Banking Financial Companies (NBFCs) today evening to take stock of the economic situation. Modi would also take stock of the flow of credit during the coronavirus crisis, according to a statement issued by the Prime Minister's Office on Tuesday.
As per the PMO, the topics on agenda include credit products and efficient models for delivery, financial empowerment through technology, prudential practices for stability and sustainability of the financial sector.
Also Read: IDBI Bank stock hits 5% upper circuit on strong Q1 earnings
Modi recently reviewed the performance of the financial sector which has been hit hard by the outbreak of the coronavirus pandemic. He also reviewed the progress of a host of measures announced under the Rs 21-lakh crore Aatma Nirbhar Bharat Abhiyan package to stimulate the economy and help the MSME sector and poor sections of society.
Last month, the Prime Minister had said that the economy is showing "green shoots" as the country emerges from the coronavirus lockdown and underscored the importance of being focussed on both life and livelihood.
By Chitranjan Kumar | shares of public sector banks (PSBs) are in upbeat mood with the Nifty PSU Bank index rising nearly 4% in intraday trade. the index is up nearly 4% in an otherwise weak market ahead of prime minister Narendra Modi's scheduled meeting with chief executives of state-owned and private banks. last month, the prime minister had said that the economy is showing "green shoots" as the economy is showing "green shoots" | Positive |
https://economictimes.indiatimes.com/news/economy/finance/50-increase-in-indirect-taxpayer-base-post-gst-economic-survey/articleshow/62694903.cms | The Goods and Services Tax GST ) implementation has increased indirect taxpayer base by more than 50 per cent with 34 lakh businesses coming into the tax net, the Economic Survey said today.The Survey, authored by Chief Economic Advisor Arvind Subramanian said, preliminary analysis of data shows GST registrants rose mainly on account of large increase in voluntary registrations, especially by small enterprises that buy from large enterprises and want to avail themselves of input tax credits."The GST has increased the number of unique indirect taxpayers by more than 50 per cent-- a substantial 3.4 million," it said, adding GST embodies and heralds a radical alteration and enlargement in the understanding of the Indian economy Belying "confusion and anxiety" surrounding GST collections, the Survey said the uncertainty will be removed once the system stabilises later this year."But the provisional assessment is this: revenue collection under the GST is doing well, surprisingly so, for such a transformational reform," it said, adding the taxes that GST has subsumed had fetched Rs 9.7 lakh crore to the exchequer in 2016-17.As per the data available, GST collections in July was over Rs 95,000 crore, while in August the figure was over Rs 91,000 crore.In September, it was over Rs 92,150 crore, October Rs 83,000 crore, November Rs 80,808 crore and December Rs 86,703 crore.The Survey said the highest number of GST registrants are in the states of Maharashtra, Uttar Pradesh, Tamil Nadu and Gujarat. Uttar Pradesh and West Bengal have seen large increases in the number of tax registrants compared to the old tax regime."The distribution of the GST base among the states is closely linked to the size of their economies, allaying fears of major producing states that the shift to the new system would undermine their tax collections," the Survey said.The Survey, tabled by Finance Minister Arun Jaitley in the Lok Sabha, said there are about 17 lakh businesses registered under GST despite their turnover being below the threshold limit of Rs 20 lakh.One of the many benefits of the GST was the voluntary compliance it would elicit, it said.As on December 2017, 98 lakh businesses were registered under the GST regime, higher than the total indirect tax registrants under the old system."Therefore, adjusting the base for double and triple counting, the GST has increased the number of unique indirect taxpayers by more than 50 percent -- a substantial 3.4 million," it said.The Survey also said that Central GST (CGST) was lower than State GST (SGST), whereas ideally they had to be equal. This possibly was because of unutilised credit available in respect of excise and service tax.It said the pre-GST revenue collection by Centre and states was Rs 9.7 lakh crore, while the estimated annualised GST revenue collection is expected at Rs 10.9 lakh crore.The Survey said based on the trends of revenue collections, the revenue neutral rate (RNR) of GST should be between 15-16 per cent.In December 2015, a Subramanian-headed panel had recommended RNR should be between 15-15.5 per cent for GST, with a preference for the lower one.Deloitte India Partner and Lead Economist Anis Chakravarty said there seems to be a considerable improvement in store for direct and indirect tax collections that can in turn lead to better fiscal numbers. | the GST has increased indirect taxpayer base by more than 50 per cent, the survey says. the highest number of GST registrants are in the states of Maharashtra, Uttar Pradesh, Tamil Nadu and Gujarat. the survey says the GST embodies and heralds a radical alteration and enlargement in the understanding of the Indian economy. the survey says the highest number of GST registrants are in the states of Maharashtra, Uttar Pradesh, Tamil Nadu and Gujarat. | Positive |
https://economictimes.indiatimes.com/jobs/online-hiring-activity-sees-12-pc-rise-in-march-report/articleshow/63713632.cms | Online recruitment activity registered 12 per cent increase in March with demand for finance and healthcare professionals witnessing a significant uptrend, says a report.The Monster Employment Index India stood at 292 in March as compared to 261 in the year-ago month."The economic reforms by the government seem to have started impacting the economy in a positive manner and the online recruitment activity around key sectors such as production and manufacturing can possibly be attributed to it," said Abhijeet Mukherjee, CEO, Monster.com- APAC & Gulf.The report noted that finance and accounts, and healthcare professionals saw highest growth year-on-year at 32 per cent and 31 per cent, respectively."The demand for professionals in finance & accounts can also be a resultant of the massive opportunity created by GST reforms for people with know-how of the new tax regime," Mukherjee added.He further said the digital revolution is mirroring the substantial growth across sectors, thereby escalating opportunities and reshaping the fundamental nature of work and iterating the constant need to upskill.During the reported month, e-recruitment activity exceeded the year-ago level in 11 of the 13 cities monitored by the Index with Kolkata topping the chart (up 33 per cent ) followed by Chandigarh (up 29 per cent.Delhi-NCR and Bengaluru witnessed a decline, the report said. | online recruitment activity registered 12 per cent increase in march. demand for finance and healthcare professionals witnessing a significant uptrend. the report noted that finance and accounts, and healthcare professionals saw highest growth year-on-year at 32 per cent and 31 per cent, respectively. e-recruitment activity exceeded the year-ago level in 11 of the 13 cities monitored by the Index. | Positive |
https://economictimes.indiatimes.com/hindi/markets/commodities/news/the-countrys-economy-got-a-big-benefit-from-farming-there-was-a-huge-jump-in-sales-of-tractors/articleshow/77871026.cms | the country's economy got a big benefit from farming, there was a huge jump in sales of tractors | tractors saw a huge jump in sales, a huge jump in the country's economy. tractors were also a big benefit to the country's economy. tractors were also a big help to the country's economy. tractors were also a big help to the country's economy. tractors were also a big help to the country's economy. | Positive |
https://www.livemint.com/Companies/nVdjEfmuP4C7MnbAMxxhNI/Chiles-170-per-bottle-winemaker-Chadwick-seeks-growth-in-C.html | London: Winemaker Eduardo Chadwick is seeking out sales in Asia, after spending more than three decades rebuilding his family’s Vina Errazuriz company in Chile and establishing its $170 top label as an industry benchmark.
Errazuriz has set up its own company in Shanghai to target Chinese buyers and collectors, complementing work with merchants in Bordeaux, who handle the winemaker’s global exports through established distribution networks.
“There’s a tremendous challenge ahead of us to educate the Asian market," Chadwick said during an interview in London this month, when he received the Man of the Year award from Decanter magazine. “That’s where we’re going to dedicate a lot of effort."
As Bordeaux and Burgundy have become more expensive over the past decade, a growing proportion of China’s wine-drinking population in the major cities has started to seek out alternative quality wines from areas such as northern Italy, Australia, Latin America and California, creating an opening for Chilean exporters.
“I am very optimistic of the potential of the Chinese" market in general, Chadwick said. Noting the growing presence of Chilean labels in key Asian markets such as Japan and China, he said that “they have a great interest in fine wine."
Chadwick has been building up the reputation of his vineyards since 1983, when his father asked him to restore the fortunes of the company, which was founded in 1870 by Don Maximiano Errazuriz. The business had suffered through more than a decade of political instability as the country lurched from the Marxist government of Salvador Allende to the military rule of General Augusto Pinochet.
“In 1983 it was difficult," he said. “1990 was the crucial year when we regained democracy."
The vineyards were planted with cabernet sauvignon and carmenere grapes, and the influence of the Bordeaux wine-making tradition was strong. Chadwick himself studied in Bordeaux, and has built the company around the belief that Chile is capable of producing wines that can compete with top international estates, rather than just the lower-priced labels with which it is more generally associated.
In the early 1990s California’s pioneering winemaker Robert Mondavi came to Chile, met Chadwick and was impressed with the potential of his land. A joint venture followed, starting with the 1995 vintage, developing the Sena label of high-end Bordeaux-style wines. Wider recognition came with a blind tasting in Berlin in 2004 organized by Chadwick and wine critic and author Steven Spurrier, pitting Sena successfully against top international wines.
Sena is made in limited quantities from vines in the Aconcagua Valley, north of Santiago and close to the Pacific Ocean, and is a Bordeaux-style blend drawn depending on vintage from cabernet sauvignon, merlot, cabernet franc, petit verdot, malbec and carmenere grapes. While the first four varieties are typical of Bordeaux, the carmenere adds a more Chilean twist.
The wine, whose 2015 vintage is listed at 120 pounds ($171) a bottle at Berry Bros. & Rudd in London, is distributed in the UK through Hatch Mansfield and internationally through Bordeaux merchants. Bloomberg
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Topics | Eduardo Chadwick has been rebuilding his family's vina Errazuriz company in Chile. the winemaker has set up a company in Shanghai to target Chinese buyers. he has been awarded the man of the year award by decanter magazine. he said he is optimistic of the potential of the Chinese market in general. he said he is focusing on the future of the wine industry in china. | Positive |
https://www.livemint.com/industry/manufacturing/inside-the-plan-to-mobile-make-in-india-11603895399056.html | NEW DELHI : Early in 2019, the central government began designing a new policy with a lofty goal: take Indian mobile phone manufacturing to the next level and scale up assembly operations by multiple notches. An executive from a large manufacturer got involved.
Over the next year, he met up with government officials at least once a month. However, by early 2020, his company’s interest in the policy, called the Production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI), started to fizzle out. The targets seem too stiff.
“By March, covid-19 had hit every major market and I wasn’t sure of the demand for phones in a post-pandemic world," the executive who didn’t want to be identified said. “The government was unwilling to budge when we requested that the targets be relaxed. We pulled out," he added.
The PLI scheme was finally notified in October 2020. It offers 6-4% incentive for five years on incremental sales of manufactured handsets over 2019-20. High-end multinational mobile phone makers, or those producing handsets worth over $200 or ₹15,000, have to sell goods worth ₹4,000 crore in 2020-21 to claim the prize.
Some 16 companies, a mix of multinationals and Indian firms, were approved. Considering that many of them, particularly contract manufacturers, would take a month or two to get their plants, machinery and customer contracts ready, they have four months to crack first year’s targets. “The only way I could have overcome the shortened period is by increasing manpower. But I can’t do that now. There are social distancing norms. At best, you have 70-75% of your workforce in the factory," the executive reasoned.
While there are murmurs of discomfort among some in the group of 16, most companies are putting up a brave front. Indian contract manufacturers such as Dixon Technologies (India) Ltd. and mobile makers like Lava International Ltd., whose applications were approved, told Mint that they can meet the targets— ₹500 crore in 2020-21 for domestic companies.
And, if these firms can see through the first difficult year, the policy appears rather seductive for the next four. The government is promising to pump $5.5 billion or about ₹41,000 crore during the scheme’s five-year tenure.
The business of mobile phone assembly is a rare Make-in-India success story. India had two mobile manufacturing units in 2014. By 2019, there were over 200. The number of mobile handsets produced shot up from 60 to 290 million in the same period; the value of handsets produced jumped 10 times to $30 billion. India, thus far, resorted to a strategy of import substitution with mobile phone assemblers largely catering to the low-end domestic market. That market may be saturating. To grow, Indian phone makers need an export nudge. “No matter what we say about the Indian market, our GDP is less than 4% of the world. India’s consumption of mobile phones is 4.5% of the world in terms of value and 15% in volume," Hari Om Rai, chairman and managing director of Lava International Ltd. said. “Import substitution is not a good model for India because it is a small market. We can grow by exporting to the world," he added.
The government’s thinking: the PLI scheme, along with two other smaller schemes around the manufacturing of components (Scheme for Promotion of Manufacturing of Components and Semiconductors) and infrastructure (Electronics Manufacturing Cluster Scheme), could shore up exports of both high-end and mid-range phones.
In a recent report, Neelkanth Mishra, the co-head of Equity Strategy, Asia Pacific, for Credit Suisse wrote that if the PLI targets are met, additional handset manufacturing of nearly 10% of the global market by value and volume could move to India by 2023-24; India’s trade deficit could improve by $24 billion. He peppered the report with a dose of caution. “These plans may see some delays: the coronavirus could push out timelines, as would perception of policy uncertainty (including at the state level) among global manufacturers."
Besides, there are clear concerns around disbursement of the incentive, which is expected to be a direct bank transfer after claims for disbursement are submitted. The claims would be verified by a project management agency and needs the approval of an empowered committee comprising the secretaries of key central ministries and departments.
“We are happy with the design of the scheme. We are only hoping that the disbursement is as promised," Bipin Sapra, a partner at Ernst & Young (EY) and a former Indian Revenue Service bureaucrat, said. “Once the central government starts disbursing the money, we will get clarity as to the budgets they have. Budgets are stressed for all incentives right now," he added.
To a large extent, the success of the scheme depends on how efficiently the disbursement process is handled.
A creative design
India will face China and Vietnam—two large mobile phone exporters—as it fires up its export dreams. China exported phones worth over $100 billion in 2019; Vietnam over $35 billion. India exported less than $3 billion in 2018-19.
Indian manufacturers are at a disadvantage on different counts. Industry conversations are replete with the word “disability". They range from poor logistics to unreliable power supply. A study by Ernst & Young and the India Cellular and Electronics Association (ICEA), ‘Mobile manufacturing in a post Covid-19 world’ compared manufacturing costs across the three countries. Assuming that $100 is the cost of producing a phone without subsidies, China can make it at $80 after factoring in the incentives the country provides. Similarly, the cost of manufacturing a phone in Vietnam is $89.
The PLI scheme bridges some of India’s deficit. The manufacturing cost, after factoring in PLI and other subsidies, totals $92-$93.
“The disability stack runs deep in the economy. For example, the taxes on fuel. Second, electricity is not subsumed under GST (goods and services tax). So how do you become competitive?" Pankaj Mohindroo, chairman of industry body ICEA asked. “While the PLI policy had to strike at some of these disabilities, it also had to be World Trade Organization (WTO) complaint," he added.
Export subsidies aren’t allowed by the WTO and thereby, a more creative structure had to be designed, which is the production-based one.
Third, the policy largely sought to attract high-end phone makers but couldn’t ignore the mid-range or low-end producers either. Besides Dixon and Lava, domestic manufacturers approved for the scheme include Micromax, Padget Electronics, Neolyncs and Optiemus Electronics. In the $200 and above category, companies whose proposals have been approved include Samsung, Foxconn Hon Hai, Wistron and Pegatron.
About 300,000 direct jobs are expected to be generated by the scheme. An advisor to the government estimated the annual wage bill for all companies participating in the scheme to be about ₹6,000 crore. In five years, the wage bill is expected to rise to ₹30,000 crore.
Considering that the government’s incentive outlay for five years is ₹41,000 crore, it is effectively subsidising the wage bill. PLI is also subsidising the capital expenditure. Companies approved under the scheme would invest about ₹11,000 crore to meet their sales targets.
The scheme is also a massive discount on India’s current value-add, the advisor mentioned above explained. Manufacturers in India import most of the components and the assembly value ranges between 8% and 15%.
“If 15% is the assembly price, an incentive of 6% is almost a 50% discount," he said.
Apple pie
The EY report quoted earlier stated that more than 80% of the mobile phone revenues are split between five companies—Samsung, Apple, Huawei, Oppo and Vivo. To participate meaningfully in the exports market and global supply-chains, tapping these firms to increase local production is crucial.
Samsung started assembling phones in India in 2007 and has recently set up a smartphone display manufacturing unit. Chinese companies such as Vivo have ramped up local assembly operations over the last few years but are no longer the flavour of the season because of geopolitical tussles.
The Apple ecosystem was a gnawing gap—Apple, one of the world’s largest companies by market cap, does manufacture locally but the volumes are rather low. The company began manufacturing in 2017 with the first generation of iPhone SE. Its made-in-India portfolio subsequently included iPhone 6s and iPhone 7 in 2018, iPhone XR in 2019 and iPhone 11 and the new iPhone SE in 2020. Apple’s contract manufacturers and suppliers produce these phones from eight locations in India; in China, the company’s suppliers manufacture from over 350 locations.
The Indian government and representatives from Apple have been negotiating incentives at least since 2016. The wooing has clearly increased over the last 15 months. “There are special groups within the central government that have shortlisted the top 50 global manufacturers and they are reaching out to each one of them individually," an executive from a multinational who didn’t want to be named said.
If there is a pull, there is a push factor, too. Apple is keen to diversify its global supply-chain. In June 2019, Nikkei Asian Review reported that Apple wanted suppliers to evaluate the cost implications of shifting upto 30% of their production capacity out of China. “However, it is not easy to move manufacturing to India. Transitions like that take years," a former employee of Apple told Mint.
PLI seems like a good start towards that transition. Three of the four companies approved in the $200 phone and above category—Foxconn Hon Hai, Wistron and Pegatron—are Apple suppliers.
Scale talk
A rising tide lifts all boats. Indian manufacturers have started talking of scale and are planning for it.
“Indian companies and multinationals are competing in a different space. It gives us room to emerge stronger over a period of time," Sunil Vachani, executive chairman of Dixon, said.
Dixon can manufacture 30 million phones in a year. Over the next few months, it plans to nearly triple capacity to 80 million and employ an additional 4,000 workers over five years. The firm is expanding in Nodia and a new facility would be ready by January 2021.
“The threshold under PLI is an investment of ₹200 crore over four years for domestic companies but we would make an investment of at least ₹350 crore," Vachani said.
Meanwhile, Indian companies appear hopeful they can leverage the supply-chain multinationals set-up. Large contract manufacturers typically push their suppliers to set up domestic shops as they shrink cycle times.
Hari Om Rai of Lava thinks the scale PLI demands would help develop the component ecosystem in the country. And local manufacturing of PCBs, displays, batteries, camera modules, and speakers would help build skills. “Our per capita income is about $2000 as compared to China’s $10,000 or Korea’s $32,000. The moment we acquire skills, at a lower per capita, our production output is going to be highly competitive. Foreign companies who come in will get the advantage of India; domestic companies even more so," he said.
Rai added that the benefits of a sprawling mobile phone ecosystem would benefit other electronics categories as well since a smart phone is at the heart of every electronics, be it displays or the batteries.
PLI, therefore, is full of possibilities and looks sound on paper. But like we mention earlier, much of its success depends on how efficiently the incentives are disbursed.
A lot depends on how the manufacturers execute, too—scaling up production is one piece of the equation. Smaller companies who catered to domestic consumers now need to find global buyers. In a pandemic-battered world, that may not be easy.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | government has approved 16 companies to take part in the production Linked Incentive Scheme for Large Scale Electronics Manufacturing (PLI) the government is promising to pump $5.5 billion or about 41,000 crore during the scheme's five-year tenure. high-end multinational mobile phone makers, or those producing handsets worth over $200 or 15,000, have to sell goods worth 4,000 crore in 2020-21 to claim the prize. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/strong-growth-to-continue-rajesh-gopinathan-ceo-tcs/articleshow/68881711.cms |
looks to sustain double-digit growth as companies step up technology expenditure that’s critical to their future, itstold ET in an interview following fourth-quarter earnings, which were announced on Friday. Net profit rose by a better-than-expected 17.7% and TCS said it had the strongest revenue growth in 15 quarters. The company is being courted by CEOs of global organisations, who want the TCS brass to talk to their boards and management teams to explain how technology is disrupting businesses across industries. Edited excerpts:I see no reason why it would not happen. The inherent demand is there. We have seen the supply (talent) side sorted out. The demand is there, talent is there... subject to any external impact, we should be able to sustain this kind of growth.We are talking about technology becoming really integral to the value chain of multiple industries. One way of characterising that... in any industry (if) $100 is spent today and let's say technology has a 3% share of that. If you ask them... five years from now, will technology be a larger share of $100 or less?Almost invariably in every industry (the answer) is that it will be larger. As long as you’re disciplined (and) have a good portfolio of products and services, demand perenniality is phenomenal.The visa situation will keep on evolving. It will reflect the politics of that time as well as inter-country dynamics. We need to be cognizant of it, and position ourselves to be able to deal with it. I don’t think we are particularly or individually impacted, as long as it is a common impact across the industry. It will have some cost implications, beyond that it doesn’t. Our thrust to the regulator is the same—make sure regulations are even handed and we are committed to be compliant with all jurisdictions we operate in. We push to make sure it is a level playing field. We will have to hire locally. We are making a strategic move of intervening early in the US supply cycle by integrating at high-school level.Our programmes are intended to increase throughput of the supply chain. They have a phenomenal university system. We have to make sure we attract students to go through that. Margins at the end of the day are a factor of relative competitiveness. As competitive difference erodes, margins erode. If competitive difference is high, margins go up.Capital markets will be the ones that will be the most impacted, because they react fastest. Others react more slowly. I have given up predicting it. We are focused on our customers. Obviously, there is nervousness, everybody reads the same newspapers, listens to the same commentary. It is becoming an echo chamber. Our advice to our teams is that in times of uncertainty, increase contact with the customers. We also travel to get a first-hand feel.We are building IP embedded with the services we do. We are already building platforms and solutions to customers. As engineers, we look at the elegance of the solution. We are pricing for the effort. The effort has been reduced because of the elegance of the solution we have developed. We need to price it for the impact of the solution. We are leaving huge money on the table. Our pricing paradigms have to change. There are huge opportunities to do that.We are at an inflection point where technology becomes much more integral to organisations and this dynamic is only going to accelerate over time. You are seeing this in the automobile (sector) and in healthcare. Name the sector, you're seeing technology coming in and disrupting it. The first phase is typically disruption of the existing players, but then there is a mixed second phase, like what you are seeing in retail, where there is strong rebound from existing players. Like in any major shifts there are winners and losers. The important thing is that it is (because of) technology, we are well positioned to participate in this churn.As technology is becoming a strategic element of strategy, CEOs want to be directly involved. It is not just that we are reaching to the CEOs and boardrooms, they themselves are coming and investing time. Last time we had CEO of Marks & Spencer spend a day with us. They're investing their time directly, because this has become such a critical component of their strategy. We are walking towards them and they are walking towards us. The engagement levels are very high. They're calling us in to present to their board of directors and to the management teams.In automobile industry, the whole electric car shift was supposed to kill off (traditional) auto companies. They are coming back strongly. Even in shared mobility space, the auto guys are going in with a strong presence. Tier I suppliers (to auto companies) are also re-architecting themselves. In media again, you are seeing a fightback. The game is still on but you can see the fightback coming. First the distributor gets power, then the content owner gets its act together and then the power game shifts. Netflix was smart enough to realise, it is quickly building a content engine before content partners with the distribution engine. Huge amount of money is being spent on it. Let's see how it plays out. Industry after industry is doing it. | net profit rose by a better-than-expected 17.7% and TCS said it had the strongest revenue growth in 15 quarters. 'we are talking about technology becoming really integral to the value chain of multiple industries,' says steve. 'we are making a strategic move of intervening early in the US supply cycle by integrating at high-school level' | Positive |
https://economictimes.indiatimes.com/news/economy/infrastructure/national-infra-pipeline-online-dashboard-showcasing-real-time-investment-opportunities-launched/articleshow/77471019.cms | NEW DELHI: Finance Minister Nirmala Sitharaman on Monday inaugurated the National Infrastructure Pipeline (NIP) online dashboard to be hosted on the India Investment Grid (IIG), which is an interactive and dynamic online platform that showcases updated and real-time investment opportunities in the country. The platform is envisaged as a one stop solution for all stakeholders looking for information on infrastructure projects in New India.“NIP will provide a boost to the vision of an Aatma Nirbhar Bharat . The availability of NIP projects on IIG will ensure easy accessibility to updated project information and attract investors for PPP projects ,” Sitharaman was quoted as saying in a statement. “This is a great step in the direction of implementing NIP- giving a fillip to infrastructure development in the country,” she added.In the budget speech of 2019-2020, Sitharaman announced an outlay of Rs 100 lakh crore for infrastructure projects over the next 5 years. A high level task force submitted a final report on the NIP with projected infrastructure investment of Rs 111 lakh crore during FY2020-25.NIP, which covers both economic and social infrastructure projects, will improve project preparation, attract investments (both domestic & foreign) into infrastructure, and will be crucial for attaining the target of becoming a $5 trillion economy by FY 2025, the statement said. | the platform is envisaged as a one stop solution for all stakeholders looking for information on infrastructure projects in the country. the platform will ensure easy access to updated project information and attract investors for PPP projects. in the budget speech of 2019-2020, sitharaman announced an outlay of Rs 100 lakh crore for infrastructure projects over the next 5 years. a high level task force submitted a final report on the NIP with projected infrastructure investment of Rs 111 lakh crore during FY2020-25. | Positive |
https://www.financialexpress.com/opinion/gst-council-needs-secretariat-with-members-having-strong-domain-expertise-to-improve-tax-system/1505001/ | Ever since GST was implemented on July 1, 2017, a number of changes have been made in a series of meetings by the GST Council to make the system more rational and operational. Of course, in most countries where GST is introduced, it takes time to settle down, and changes are mostly to do with operational details. The changes that have been made in India have been far more frequent and basic, dealing with both the structure and operational details. Changes have also been made on the threshold, limit for composition, periodicity and simplification of returns, particularly for small tax-payers. The two important reasons for this have been our inability to move away from the past and inadequate time for the preparation of the technology platform.
The latest announcement of reduction in the rates of GST for under-construction houses to 5% and affordable houses to 1% has received mixed reactions. While some have hailed it as ‘boost to real estate’, others have stated that it is ‘a patchwork approach’ and does not qualify to be called a GST without input tax credit. Having experienced the functioning of GST in the country for the last 20 months and seen the frequent changes that have been made, it is important to learn lessons from the past and make changes in a calibrated manner to settle down to a stable GST regime without violating its fundamentals. The most important advantage of GST is its transparency and self-enforcing nature. It is also important to see that the reform helps in the formalisation of the economy. The critical element that helps formalisation is its input tax credit mechanism.
There is nothing wrong in making calibrated rationalisation of the tax as we gain experience. However, as mentioned earlier, the number of changes and their frequency depends on how well we have structured the tax in the first place. In the case of India, the basic flaw was the number of rates and the way in which various commodities and services were ‘fitted’ into different rates. The committee under the chairmanship of the then Chief Economic Adviser for determining the rate structure recommended a “high rate” of 40 percent on demerit goods in addition to a low rate and a standard rate. The Committee was perhaps not sure that the two rates will be revenue neutral and therefore, introduced the third rate. Eventually, the GST Council decided to have five different rates of 0%, 5%, 12%, 18% and 28%. It later introduced two more rates—0.25% on rough diamonds and 3% for gold. In addition, for compensating the states for any loss of revenue, it introduced cesses at three different rates. The “fitment committee” of the GST Council seems to have added the earlier sales tax rates with the Union excise duty rates and fitted the commodities to the rate that is the closest. In the process, it lost the opportunity to rationalise the rates by by avoiding the defects of the previous tax regime.
Writing on GST in 2001, I had stated that there is no unique GST—it is neither a “Gorilla, nor a Chimpanzee but a Genus like Primate” (EPW. February 12, 2011). Each country should adopt the structure it considers appropriate, but the fundamental character of the tax must not be compromised. In choosing so many rates, the tax got complex, created classification ambiguities and, often, input tax credit exceeded the output tax payment giving rise to an inverted duty structure. In fact, the defects of the earlier sales tax system where inputs were taxed at lower rates than the outputs giving rise high incentive to evade the tax by suppressing the output value. In GST, since input tax credit is given when the output is taxed, it is inappropriate to tax inputs and outputs at different rates. The ideal structure that IMF recommends is one rate, but many countries levy the tax at two rates—a lower merit rate and the general rate. If articles of sumptuary nature need to be taxed at high rates, a separate excise tax is levied. However, India is unique in having so many rates and this is bound to create complexities as mentioned above. As the rate fixation has been done in a mechanical manner, there will be many more changes. Of course, the past legacy may not permit us to have one rate of GST, but a structure with too many rates merely on the grounds that it existed before and our common ‘belief’ about necessities and luxuries without knowing their employment intensity cannot be considered rational.
The GST Council has shown a remarkable flexibility in making some important changes. In particular, reclassification of a number of items taxed at 28% under 18%-category is truly welcome and, hopefully, the 28% category will be done away with altogether in not too distant a future. Over time, it would be useful to converge the 5% and 12% rates into one rate of 10% to substantially simplify the system. Much remains to be done to make the rate structure rational and perhaps, the GST Council should have a secretariat, with members having strong domain expertise to undertake research to improve the tax system. The patchwork changes will only complicate the tax system further.
In this context, the decision to reduce the tax rate for under-construction houses to 5% and affordable houses to 1% is retrograde. In the earlier system, GST for under construction houses was levied at 18% and with one-third value for land assigned, the effective rate was 12% and the tax on affordable housing was 8%. This has been brought down to 5% and 1%, respectively. Clearly, housing is a heavily taxed sector. Besides varying rates of stamp duty across states, we also have a capital gains tax. Given the high cumulative incidence of taxes on housing, the rate of return for remaining informal and undervalue the property transactions to evade the taxes is high. More importantly, the Council should have seen that many inputs such as cement, marble, granite and paint are all taxed at 28% which add to the input cost enormously and not giving input tax credit will not only result in high costs but also low compliance. The suppliers of these inputs may collude with the builders to suppress their sales and discontinuing the input tax credit will not leave any paper trail. In other words, rather than making the system formal, the recent changes will simply help in making the housing market even more informal. Perhaps, the Council should have brought down the tax rate on inputs mentioned above from 28% to 18% or even 12% to avoid the high burden on the construction industry. This would have simplified the tax, retained the paper trail and avoided the inverted duty structure. To avoid such patchwork approach, the council needs a strong secretariat with domain expertise.
The author was Member, Fourteenth Finance Commission. Currently, he is a Counsellor, Takshashila Institute
Views are personal | GST was introduced on July 1, 2017 and has been made more frequent. changes have been made on the threshold, limit for composition, periodicity and simplification of returns. the most important advantage of GST is its transparency and self-enforcing nature. it is also important to see that the reform helps formalisation of the economy. the GST Council decided to have five different rates of 0%, 5%, 12%, 18% and 28%. | Positive |
https://www.businesstoday.in/current/corporate/ola-invest-rs-2400-cr-set-up-world-largest-e-scooter-factory-tamil-nadu/story/424849.html | Cab aggregator Ola said on Monday that it has signed a memorandum of understanding with the government of Tamil Nadu to set up "the world's largest scooter manufacturing facility" in the state, which would create 10,000 jobs. The SoftBank-backed firm will invest about Rs 2,400 crore to set up the factory, which would have an initial capacity to produce 2 million electric vehicles in a year.
The development is part of the company's plan to foray into electric scooter manufacturing and expanding reach of its services to smaller cities and towns across the country. The company ventured into two-wheeler business in 2016 and has created livelihoods for over 300,000 people in India.
The company is gearing up to launch the first of its range of electric scooters in the coming months, while the new manufacturing plant is expected to be operational in a year's time.
Ola, in a statement, said the facility in Tamil Nadu would improve the country's import dependence in electric vehicle market and serve customers not only in India but in markets around the world including Europe, Asia, Latin America and others.
Also Read: Govt mandates Ola, Uber to share fare 20:80 with drivers
"In line with Prime Minister Narendra Modi's vision, Ola's factory is an important step in making an Atma Nirbhar Bharat. It will catalyse reduction of India's import dependence in a key future sector like electric vehicles, boost local manufacturing, create jobs as well as improve the technical expertise in the country," it added.
The firm, which is already in the cabs business, said India with its unique skill-sets, manpower and demography, is well placed to be a global hub for cutting edge manufacturing of electric vehicle (EVs).
Also Read: Big news for Ola, Uber! Now, there's a definition for cab aggregators
"We are excited to announce our plans to set up the world's largest scooter factory. This is a significant milestone for Ola and a proud moment for our country as we rapidly progress towards realising our vision of moving the world to sustainable mobility solutions across shared and owned mobility," Ola Chairman and Group CEO Bhavish Aggarwal said.
He added that this factory will be one of the most advanced manufacturing facilities in the world.
"This factory will showcase India's skill and talent to produce world class products that will cater to global markets," he said.
Earlier this month, Ola had said it will launch its electric two-wheeler range in New Zealand to help support the New Zealand government's goal of bringing on road 64,000 new electric vehicles by the end of 2021, while also helping the public sector become carbon neutral by 2025.
By Chitranjan Kumar | cab aggregator Ola has signed a memorandum of understanding with the government of Tamil Nadu. the softbank-backed firm will invest about Rs 2,400 crore to set up the factory. the company is gearing up to launch the first of its range of electric scooters in the coming months. the company says it will catalyse reduction of India's import dependence in electric vehicle market. | Positive |
https://www.livemint.com/news/world/singapore-to-ease-coronavirus-restriction-starting-december-28-11607939916600.html | Singapore has approved the use of Pfizer Inc. and BioNTech SE’s coronavirus vaccine and expects the first shipments by the end of the month, by which time it also plans to move into the final phase of its virus curbs.
Other vaccines are expected to arrive in Singapore “in the coming months," Prime Minister Lee Hsien Loong said in a speech on Monday, adding the country will have enough for everyone by the third quarter of next year. Meanwhile, Singapore will further ease restrictions to stem the spread of the virus on Dec. 28, expanding the number of people allowed to gather from five to eight.
Also read | Why your health plan premium is suddenly spiking
The country has set aside more than S$1 billion ($750 million) for vaccines, Lee said during the national address. “We placed multiple bets, to sign advance purchase agreements and make early down-payments for the most promising candidates," including with Moderna Inc. and Sinovac Biotech Ltd, he said.
Singapore will be one of the first countries to obtain the Pfizer-BioNTech vaccine, Lee said. The drug has already been approved in the U.K. and Canada, and recently gained emergency U.S. authorization, marking a scientific sprint that could eventually help bring an end to a pandemic that has killed more than one million people worldwide.
Lee said first priority will be given to those who are at greatest risk: healthcare workers and front-line personnel, as well as the elderly and vulnerable. The government has also accepted the recommendation by a committee of doctors and experts to vaccinate the entire adult population, though for this to be made voluntary.
Phase 3 Easing
With the number of reported daily infections in the community at or near zero in the city-state of 5.7 million people, the prime minister also said authorities will ease capacity limits in public places like malls and attractions and at places of worship under the so-called phase three.
“Please understand that even as we enter Phase three, the battle is far from won," the prime minister said. “The Covid-19 virus has not been eradicated."
The government has previously said that in phase three, Singapore could gradually see more travel resume while restrictions such as mask wearing and safe distancing will remain in place.
In the early months of the pandemic, Singapore in April imposed a two-month partial lockdown. Since then, the country has bolstered its treatment and testing capacity. Last month it made coronavirus tests available to anyone who needs one.
Even with low rates of infection, the task of resuming certain activities in Singapore’s tourism-dependent economy has proved difficult. After suspending a highly anticipated air travel bubble with Hong Kong, the city-state said over the weekend it will be tightening border measures for travelers from there given the deteriorating outbreak situation. Last week, a Covid-19 scare aboard a cruise ship prompted by an incorrect positive diagnosis forced an early end to an ongoing trip.
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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed. | the country will have enough vaccines for everyone by the third quarter of next year. the country will further ease restrictions to stem the spread of the virus on Dec. 28. the number of people allowed to gather from five to eight will increase. the drug has already been approved in the uk and canada. it recently gained emergency u.s. authorization. the government has also accepted the recommendation by a committee of doctors and experts to vaccinate the entire adult population. | Positive |
https://economictimes.indiatimes.com/markets/commodities/news/gold-more-liquid-no-credit-risk-amid-pandemic-wgc/articleshow/74789858.cms | At a time when investors are spooked by the spread of Covid-19 and the markets remain volatile, the World Gold Council WGC ) said gold can provide liquidity with no credit risk and improve overall portfolio performance.Gold is a clear complement to stocks, bonds and broad-based portfolios, as it is a hedge against systemic risk, currency depreciation and inflation , WGC said in a report 'The relevance of gold as a strategic asset: Indian edition'.It has historically improved portfolios' risk-adjusted returns, delivered positive returns and provided liquidity to meet liabilities in times of market stress, it noted."Today, gold is more relevant than ever before for the Indian investors. In such times of uncertainties and global market turmoil, gold possesses the ability to significantly improve risk-adjusted returns of portfolios across various levels of risk and act as a hedge against inflation and our data confirms this," WGC Managing Director, India, Somasundaram PR said.A well-diversified portfolio with gold will also tend to avoid panic reaction to market movements, and in a way, act against exacerbating the volatility, he opined."The average annual return of gold of 10 per cent since 1981, has outpaced the Indian consumer price index (CPI) that averaged over the period at 7.35 per cent."Gold also protects investors against extreme inflation. Gold's unique attributes as a scarce, highly liquid and un-correlated asset highlight that it can act as a genuine diversifier over the long term," he said.In India, gold's dual position as an investment and for adornment has allowed it to deliver average returns of approximately 9 per cent over the past 10 years, comparable to stocks and bonds and commodities, he said."Over the long term, therefore, gold has not just preserved capital, but helped it grow," he added.Perceptions of gold have changed substantially over the past two decades, reflecting increased wealth in the east and a growing appreciation of gold's role within an institutional investment portfolio worldwide, the report said.Gold's traditional role as a safe-haven asset means it can demonstrate its qualities during times of high risk, however, its dual appeal as an investment and a consumer good means it can generate positive returns in good times too, it added. | gold is a clear complement to stocks, bonds and broad-based portfolios. it is a hedge against systemic risk, currency depreciation and inflation. gold's dual appeal as an investment and a consumer good means it can generate positive returns in good times too. gold's annual return of 10 per cent since 1981 has outpaced the Indian consumer price index (CPI) that averaged over the period at 7.35 per cent. | Positive |
https://www.moneycontrol.com/news/trends/book-review-trends/book-review-pandeymonium-a-glimpse-into-iconic-ad-maker-piyush-pandeys-mindset-thought-process-5529931.html | India ad spends are expectred to see a growth of 23.2 percent to reach an estimated Rs 80,123 crore this year.
Pandeymonium: Piyush Pandey
on Advertisingby Piyush Pandey
Published by
Penguin India
Whether or not you are an advertising professional, you likely already know the name of Piyush Pandey as a celebrity advertising professional. Pandey, the lynchpin of ad agency Ogilvy India, is famous for conceptualising advertising campaigns that not only tweaked the synapses, but also twanged the heartstrings of the viewers, stoking their consumeristic aspirations in a newly liberalised Indian economy. This book tells us how Pandey thinks, what his values are, that is, what makes him tick -- a sense of curiosity about Indian life and culture, massive ambition, a drive for excellence, and a penchant for identifying heartwarming content.
Pandey was among those Indians who most effectively linked life’s priceless moments to the marketing of products and services -- a linkage that was neither essential nor inevitable. If this is a form of manipulation, then it is also an indictment of the entire field of advertising, which is designed to create demand where it often does not exist. Pandey clearly does not think so; he only praises advertising’s potential to bring about social change, without dwelling at length on the ethics of advertising itself, and what an ethical form of advertising might look like. Curious, then that Pandey’s values as a communicator are conveyed right at the beginning of the book: “Whatever you say, say it with respect for the audience, say it in a context that the audience can understand, say it spontaneously, say it without fear, say it not to intimidate or frighten, but to delight”.
The book is structured as a series of anecdotes culminating in advice from Pandey’s playbook for advertising professionals. For instance, Pandey writes of Ogilvy’s rules on the use of music in their commercials. “Suresh Mullick (National Creative Director, and Pandey’s mentor) taught me... not to create music and lyrics that take the brief literally. The second is never to force music onto the consumer. The third is not to ‘sing’ brand names.” Each anecdote, which is too brief to be called a case study, comes with nuggets of advice such as these.
Pandey has a freewheeling style of narration, and sometimes it is hard to discern the thrust or flow of a chapter. There are passages where facts are simply mentioned in passing to whet our appetite but not to slake our hunger through elaboration. For instance, in a chapter on Ogilvy India’s work with family-run businesses, we are told in about 125 words that Pandey considers it his personal failure never to have worked with the Mahindra Group of companies. The chapter ends there abruptly. Why mention this at all if you’re not going to explain it adequately?
Happily, though, Pandey gives us a glimpse into his mode of generating advertising ideas. He writes, “Whenever I feel bereft of ideas or hit a block, I find inspiration by rewinding life to my childhood and going back to my formative years. That’s when the mind was pure, unafraid, unconstructed and unfettered”. That points us to the source of the emotional energy of Pandey’s ideas.
Many of his famous ad campaigns are mentioned in the book. I will single out, however, his agency’s work on the campaign done for the Bharatiya Janata Party ahead of the 2014 Lok Sabha elections, including the famous slogan, Ab ki baar Modi sarkar. This chapter, like the others, is dealt with too breezily; more detail about the rationale behind the choice of messaging tone and content would have further benefited the students of advertising whom this book will naturally attract.
Pandey also devotes attention to the future of the advertising business in India. Of course, his book was written before the COVID crisis hit; his bullish predictions of the ad industry growing by 11-12 percent year on year now seem like fiction.
To sum up: this book makes the general audience relive their memories of landmark ad campaigns that defined the consciousness of post-liberalisation India. But the book is not written in order to be a comprehensive explainer of advertising to the lay reader. What the book does do is to give us a glimpse into Pandey’s mindset and thought process; so the book will be of interest to advertising professionals and students of the subject.
Suhit Kelkar is a freelance Journalist. He is the author of the poetry chapbook named The Centaur Chronicles. | ad spends expected to grow 23.2 percent to reach an estimated Rs 80,123 crore this year. lynchpin of ad agency Ogilvy India, is famous for conceptualising ads. he was among those who most effectively linked life's priceless moments to marketing. he praises advertising's potential to bring about social change without dwelling on ethics. | Positive |
https://www.financialexpress.com/india-news/expansion-of-bilateral-trade-with-india-in-mutual-interest-south-korean-president-moon-jae-in/1237560/ | South Korean President Moon Jae-in today called for expansion of bilateral trade with India, saying it was in the interest of both nations. Addressing the India-Korea Business Forum here, Moon hoped that upgrade of the Comprehensive Economic Partnership Agreement (CEPA) and Regional Comprehensive Economic Partnership (RCEP) Agreement negotiations can be “concluded as early as possible”. “India and South Korea are the world’s 7th and 11th largest economies.
However, trade between the two countries came to USD 20 billion last year, which is not small but far short of our expectations,” Moon said at the forum attended by around 400 top business leaders from both countries.
Commerce and Industry Minister Suresh Prabhu said he has held a discussion on the ‘Early Harvest’ under CEPA with his Korean counterpart Kim Hyun-Chong.
Prabhu said the two nations are taking forward the discussion and have decided to take their relationship to the new level. The two ministers today signed the joint statement on the Early Harvest package in the India-Korea CEPA upgradation, according to an official statement.
Stressing that India and Korea can lead the fourth industrial revolution, Moon said an MoU will be signed tomorrow towards the establishment of a Future Vision Technology Group to boost bilateral cooperation in science and technology. Referring to the recent rapprochement between his country with North Korea, Moon said business opportunities in his country could rise substantially if “we can establish peace in the Korean Peninsula”.
“South Korea is facing a historic transition. We have opened a way to the establishment of peace through the South-North Korea summit and North Korea-US summit. “Once peace is established, investment conditions in South Korea will improve and many new business opportunities may be created,” the president said. He shared that bilateral cooperation between India and Korea was being expanded to newer areas like ship building, medical devices and food processing.
Moon pointed out that Korean companies were keen to participate in large-scale infrastructure development in India, especially in the development of Smart Cities. He said the two nations share many common values while both their governments pushed for what he termed the “3Ps” — people-oriented peace and prosperity. “I am committed to raise the relationship with India which is embodied in the New Southern Policy, which is also aligned with Act East Policy pursued by Prime Minister Narendra Modi,”Moon said.
The president said Korea will contribute actively to Make in India initiative of the government, adding that around 500 Korean companies are present in India. Besides, Prabhu referred to the processing of marine products exported from India as one of the sunrise sectors for future bilateral cooperation, adding that there lies a great opportunity for Korean companies to come and invest in India. He said India was thinking of setting up a special economic zone which can only house the Korean companies.
“I will urge my Korean friends that this is the place where you should invest because in the next 7-8 years India will be a 5 trillion dollar economy and if you take 15 years from now India will be a 10 trillion dollar economy. So the growth in India is inevitable, we are on course to do that,” Prabhu said. He outlined manufacturing, services and agriculture as the areas having huge potential to enhance bilateral economic cooperation, adding that he has already discussed this with his Korean counterpart. “We would like to give a concrete shape to this through the business participation,” he added.
The minister highlighted the importance of the South Korean President’s visit to India at a time when the country was in a growth trajectory, and expressed confidence that his coming here would help India’s economy touch the 8 per cent mark soon from 7.6 per cent in the last quarter. India and South Korea are working to revise the CEPA which has been in place since 2009.
According to estimates, India’s export to South Korea stood at USD 4.4 billion in 2017-18, with an annual growth of 5.2 per cent. On the other hand, import from Korea was four times larger at USD 16.4 billion and rose 30 per cent in 2017-18. The Korean President also highlighted India’s contribution to the world through Bollywood, Yoga, Nobel Laureates and meditation, observing that his daughter was a Yoga instructor and movies like Haathi Mere Saathi, Three Idiots and Dangal have garnered huge popularity in Korea. | Moon said bilateral trade between the two countries came to USD 20 billion last year. he said bilateral cooperation between India and Korea was being expanded to newer areas like ship building, medical devices and food processing. he said the two nations share many common values while both their governments pushed for what he termed the '3Ps' - people-oriented peace and prosperity. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/cbdt-notifies-amendment-on-tax-exemption-for-sovereign-wealth-funds-for-investment-in-infra/articleshow/76833801.cms | Income from dividend, interest and long term capital gains of sovereign wealth funds, the Abu Dhabi Investment Authority and pension funds, through investments made in infrastructure companies – via debt or equity – in India will be exempt from income tax.The Central Board of Direct Taxes notified the amendment, which was first announced in the Union Budget in February, and has widened the definition of infrastructure to include sub-sectors of transport, logistics, energy, water and sanitation, communication, social and commercial infrastructure.“This notification shall come into force from the 1st day of April, 2021 and shall be applicable for AY 2021-22 and subsequent assessment years,” the Board said Tuesday.The notification would incentivise foreign investors to invest in thirty four defined infrastructure sectors directly or through vehicles such as Alternate investment funds or Infrastructure Investment Trusts. CBDT has aligned the sectors with the harmonised master list of infrastructure notified by Department of Economic Affairs in August, 2018.Experts said the move would propel India growth story and fund its aspiration to achieve a $5 trillion economy which required a comprehensive re-boot of hard and soft infrastructure.“Pursuant to this notification, investing in India infrastructure would turn attractive, unmindful of hasty down grade of country ratings and allow long term stable capital to chase high quality infrastructure project,” said Aravind Srivatsan, Partner, Nangia Andersen LLP. Capital formation would flow into social infrastructure such as educational institutions, sports stadiums, tourism, operationalise long pending investment creation of theme based parks including food parks, multi-modal logistics parks and textile park, besides driving investments in city gas distribution network, bulk material transportation pipelines, urban public transport and rail infrastructure.“Considering India's need for huge investment in infrastructure this will attract sovereign funds to a more diverse range of infrastructure companies into sectors like telecom, energy, logistics, hospitals, cold chains, etc,” Amit Maheshwari, tax partner at AKM Global said. | the amendment was first announced in the Union Budget in February. it has widened the definition of infrastructure to include sub-sectors of transport, logistics, energy, water and sanitation, communication, social and commercial infrastructure. the notification would incentivise foreign investors to invest in thirty four defined infrastructure sectors directly or through vehicles such as Alternate investment funds or Infrastructure Investment Trusts. | Positive |
https://economictimes.indiatimes.com/industry/energy/oil-gas/gas-warrior-seeks-to-convert-indias-steel-mills-to-spur-use/articleshow/74190036.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://economictimes.indiatimes.com/small-biz/startups/newsbuzz/byju-parent-makes-300-million-cash-offer-for-whitehat-jr/articleshow/76780442.cms | Byju Raveendran, who is the founder of BYJU’s
NEW DELHI: Think and Learn, which owns and operates educational technology platform Byju’s, has made a $300 million all-cash offer to acquire smaller peer WhiteHat Jr , one week after the Bengaluru-headquartered unicorn closed a new funding round from Bond Capital, the investment firm led by storied Silicon Valley investor Mary Meeker.The development comes at a time when WhiteHat Jr is already in the market to raise $50 million in fresh financing at a valuation of $350 million, and has held discussions with a number of notable venture capital and private equity firms, including Sequoia Capital, GIC - the sovereign wealth fund of the government of Singapore, Renuka Ramnath-led Multiples Alternate Asset Management, Tiger Global Management and Steadview Capital, among others.WhiteHat Jr, founded in 2018 by Karan Bajaj, the former chief executive of Discovery Networks India, operates in the K-12 segment, teaching students to code, and helping them build commercial-ready games, animations and apps using the fundamentals of coding.The startup has developed a proprietary coding curriculum, focused on product creation, and imparts lessons through live, interactive online classes. “WhiteHat Jr continues to be in talks with multiple investors. Byju’s is a later entrant to the table,” a source aware of the developments told ET on the condition of anonymity.The Mumbai-based company’s efforts to raise capital was first reported by ET on May 21. Byju’s did not respond to an emailed query till the time of going to press on Friday, while messages sent to a WhiteHat Jr spokesperson did not elicit any replies.Separately, Byju’s is reportedly in advanced negotiations to acquire Doubtnut , a two-year-old learning app, for as much as $150 million, in what is also expected to be an all-cash transaction.The company, which is valued at about $10.5 billion, has been on a capital raising spree over the course of the current calendar year, with a significant portion of the proceeds expected to be utilised to fund acquisitions, across markets, as it ramps up its bouquet of products, and enters new geographies.While Bond Capital is believed to have put in less than $100 million in Byju’s, the Bengaluru-led company, which also counts Tiger Global, General Atlantic , Naspers, Verlinvest, Chan-Zuckerberg Initiative, Sequoia Capital, and Lightspeed Venture Partners among its list of investors, has already raised $400-$450 million in the first six months of this year.WhiteHat Jr, which last raised capital in late 2019 from Silicon Valley-based investor Owl Ventures, Omidyar Network and Nexus Venture Partners, has till date raised a shade over $11 million across its seed and Series A rounds.Incidentally, both companies count San Francisco and Sand Hill Road-based Owl Ventures, an education-focused investment firm, as a common investor.India’s education tech sector is seeing huge investor interest due to the pandemic. | byju Raveendran, founder of BYJU’s NEW DELHI: Think and Learn, has made a $300 million all-cash offer to acquire whitehat Jr. the Bengaluru-based unicorn is already in the market to raise $50 million in fresh financing at a valuation of $350 million. byju’s is also reportedly in advanced negotiations to acquire Doubtnut, a two-year-old learning app, for as much as $150 million. | Positive |
https://www.financialexpress.com/defence/cutting-indias-dependence-on-middle-east-oil-60-more-oil-lifted-from-colombia-ecuador-to-increase-supply-too/1343014/ | With the India-Colombia bilateral trade $1.5 bn, India lifted oil close to $ 400 million from January to July this year– an increase of 60% in the same period of the previous year.
Speaking to FE ONLINE, on condition of anonymity, a very senior diplomat said that, “As US imports of Colombian and of other origin continue to decline, impending sanctions on Iran next month, supply constraints of OPEC, India is expected to look at other markets.”
“Imports of oil from Colombia and Ecuador will go up substantially in the coming months,” the senior diplomat added.
India has been looking at other countries for its energy security due to impending second round of US sanctions in November targeting Iran’s energy sector, and political unrest in South American nation Venezuela.
India has been gradually planning to increase the crude imports from Latin American nations to 50% over the next few years, sources confirmed to FE ONLINE.
There are four areas of cooperation in the oil sector identified by oil companies of both countries which cover: exploration and production of oil; activities of refining, processing and purification of hydrocarbons; and looking for more oil in the country.
ONGC Videsh has operations in the Llanos field in Colombia’s Orinoco and explored five wells. The same company owns 50% of the Mansarovar, in a joint venture with the Chinese company Sinopec, in the region of Magdalena Medio.
During the last week’s visit of Minister of State for External Affairs, Gen VK Singh (Retd) to Colombia, it was decided that the Joint Study for negotiating Partial Scope Agreement to enhance bilateral trade will be finalised soon between the two countries.
The two countries are seeking for expansion of bilateral trade and investment in areas including IT, pharmaceuticals, automobiles, agriculture, urban planning & development, and Start ups.
India and Colombia in 2019 will be celebrating 60 years of establishment of diplomatic relations and decided that this historic milestone be celebrated in a befitting manner.
As reported by FE earlier, ONGC Videsh has discovered hydrocarbon reserves in its Mariposa-1 well, which is under drilling in CPO-5 block of Colombia. Also, Ecuador has inked a confidentiality agreement with ONGC Videsh and has been in discussion about the new blocks available in that country.
The Indian company which is already present in Colombia is exploring the possibility of expanding their footprints in Ecuador and has been looking at buying a stake in oil fields there. ONGC is looking for fields with a minimum 25,000 barrels per day of oil production. | india lifted oil close to $ 400 million from January to July this year. this is an increase of 60% in the same period of the previous year. the two countries are seeking for expansion of bilateral trade and investment. the two countries are celebrating 60 years of establishment of diplomatic relations. the two countries are seeking for expansion of bilateral trade and investment. in 2019 they will be celebrating 60 years of diplomatic relations. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/tier-ii-markets-are-likely-to-see-growth-in-co-working-spaces-neetish-sarda-founder-smartworks/articleshow/67023223.cms | NEW DELHI: Flexible work spaces are a compelling proposition in today’s fast paced world. Demand for such spaces is increasing in India as these offer the flexibility to companies to scale up operations without taking away their focus from their core activities.In an interview Neetish Sarda, founder, Smartworks , a provider of co-working spaces discusses market trends, key feature of their offering and more. Edited excerpts:Agile workspaces have seen market double over the previous year. The growth has sustained throughout the year and is expected to continue in 2019. A recent report by Colliers points out that office leasing momentum is expected to continue over 2019 -2021 and reaffirms average annual gross absorption of 14.5 million sq feet.Here are a few key trends expected in 2019:This has been the fastest growing segment within the commerical office space. A report by CBRE, titled ‘Exploiting the Agile Revolution: Prospects for Landlords and Investors,’ flexible space operators have grown rapidly in recent years, reaching a total footprint of just under 40 million sq. ft. as of H1 2018 in 16 major Asia Pacific cities including Bangalore, Mumbai and Delhi NCR. As of June 2018, China and India are the two largest markets for flexible space in Asia Pacific.Flexible space has its origins as a shared service for start-ups and smaller tenants. More recently, however, it has been utilised by larger companies seeking to increase the flexibility of their portfolios amid what is an increasingly complex and volatile business environment. More than 80% of our clients include enterprises like Amazon The growth in agile workspaces today is fuelled by multi-sectoral growth, which includes technology, banking, e-commerce and insurance among others.Coworking spaces also translate to cost savings - corporates can save around 25-40% compared to leased properties. Some developers are choosing to walk the path alone and launch their own coworking space initiatives. This trend is likely to continue in the office leasing market.Thirdly, tier II markets are likely to see a bigger growth in co-working spaces. Finally, productivity at workplace is another aspect that is going to see a huge shift at co-working spaces.Gig economy is a way to work or conduct business in a borderless and technology-enabled market where businesses and professionals collaborate on a particular project. Coworking spaces provide that space where companies, entrepreneurs, freelancers and startups come together to share a collaborative experience.However, with the ongoing growth of agile workspaces, the factor of gig economy has a smaller role to play as these offices are increasingly becoming enterprise focused. There are various deals where we have seen an enterprise take up an entire floor or even a building.In a short span of two years, we have scaled up to cover over 1.5 mn+ sq.ft across nine cities. Our differentiation hinges on a focus on enterprise clients. More than 80% of Smartworks’ clients comprise large corporates like Tata Communications, Microsoft, Arcelor Mittal, Amazon,Carrier, Otis Lenovo , Bacardi, DHL and OLX among others.We provide focussed programs for networking and collaboration through an array of events like pet therapy, indoor games, tournaments and stand-up comedy.Facilities like creche, gyms, meditation, chair yoga, pet therapy, yoga classes and live music are some examples which ensure an overall productive office experience across our centers. Besides, we have deployed a robot called Mitri that manages the visitor management system at every facility.The trend is picking up in many tier II cities as well today. We have seen growth of the market in cities like Pune, Kolkata, Chennai and Hyderabad. In Chennai, we are opening up our third center which will be operational by early next year and have a total seating capacity of 5000+ people.Kolkata, as a recent report by Colliers points out, has seen highest leasing in the past six months and one of our largest centers is present in Kolkata. We plan to continue our expansion in tier II cities.We are extremely bullish, especially in South & West regions and this year itself we have added inventory to our key markets in Mumbai and Bengaluru. We aim to reach at least 10 million sq ft in terms of our overall footprint in India by 2022. | in an interview, Neetish Sarda, founder, Smartworks, a provider of co-working spaces discusses market trends, key feature of their offering and more. a recent report by Colliers points out that office leasing momentum is expected to continue over 2019 -2021. flexible space operators have grown rapidly in recent years, reaching a total footprint of just under 40 million sq. ft. as of H1 2018 in 16 major Asia Pacific cities including Bangalore, Mumbai and Delhi NCR. | Positive |
https://www.financialexpress.com/budget/budget-2019-godrej-nestle-united-against-corporate-tax-say-reduction-needed-for-big-cos/1607733/ | Union Budget 2019 India: As the time for Budget 2019 draws near, several industrialists have spoken about the industry reforms that they expect from it. Nestle and Godrej, two of the biggest FMCG companies in India, have also joined the bandwagon and spoken about the need to reduce corporate taxes. “Any steps to reduce corporate tax will make investments more attractive,” Nestle CMD Suresh Narayanan told CNBC TV18 on the sidelines at an event. Also speaking at the same event was Adi Godrej, who resonated the same and said that there is a need to reduce the rates of corporate taxes for bigger companies.
Expectations are very high from Finance Minister Nirmala Sitharaman’s maiden budget to be unveiled on 5 July 2019. As FMCG industry has borne the brunt of the ongoing rural distress, Suresh Narayanan said that he hopes the budget addresses consumption, agriculture, employment and investment. Stating that there is a need for greater partnership between the industry and the government, he added that it will improve the overall economic climate of the country.
“The issue that is obvious and can address a lot of our issues is agriculture. Whatever we can do on agriculture, be it in terms of agricultural incomes, in terms of food processing, and enhancements of food processing industries — can generate income, employment and a sustainable model of progress,” Suresh Narayanan added. However, he remains confident of demand and consumption. Once the right kind of investments are generated and demand and consumption will also happen, he said.
Slowing economy is another concern and Adi Godrej said that the growth needs to be restored hence the 2019 budget must have provisions for it. Also addressing the recent repo rate cut by the Reserve Bank of India, the chairman of Godrej industries also said that lower interest rates have not been transmitted despite the repo rate cut. | several industrialists have spoken about the industry reforms that they expect from it. Nestle and Godrej, two of the biggest FMCG companies in india, have also joined the bandwagon. also speaking at the same event was Adi Godrej, who said that there is a need to reduce corporate taxes for bigger companies. expectations are very high from Finance Minister Nirmala Sitharaman’s maiden budget to be unveiled on 5 July 2019. | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/housing-sales-in-southern-cities-higher-than-north-and-west-india-in-2018-anarock/articleshow/67939424.cms | NEW DELHI: Housing demand and supply were higher in Bengaluru, Chennai and Hyderabad as compared to sales and new launches in the north and west regions, property consultant Anarock said.According to a report, housing sales in the main southern cities collectively rose by 20 per cent as against 18 per cent rise in the north and 15 per cent in the west.New housing launches increased by 77 per cent in 2018 to 67,850 units over the previous year. National Capital Region (NCR) saw an increase of just 16 per cent in new supply while the main west Indian cities of Mumbai Metropolitan Region (MMR) and Pune, together, saw a mere 17 per cent jump in new residential supply.Anarock also found out that the collective unsold stock in these southern cities is a mere 19 per cent of the total 6.73 lakh unsold units across the top seven cities. NCR alone has nearly 28 per cent of the total unsold stock.“This clearly indicates that the housing markets in the southern cities are exceptionally resilient, and were quick to recover from the overall slowdown in the Indian real estate sector,” said Santhosh Kumar, Vice Chairman of Anarock Property Consultants.The housing market in southern cities are driven by end-user demand, particularly from people working in IT/ITeS sector, while the NCR market is backed by investors, he said.During all the ups and downs that the Indian real estate market has witnessed in recent years, the southern cities have displayed remarkable strength and resilience even in the worst phases.“Year 2018 was a mixed bag of highs and lows for the Indian real estate sector. The initial pangs of policy alterations seemed to fade away with each region seeing visible signs of recovery across segments,” Kumar said.Not only housing, Anarock said the retail and office segments of the real estate sector also increased activities in southern cities.As per company data, the main southern cities saw collective office space absorption of nearly 21 million sq ft as against just 6 million sq ft in entire NCR.“All in all, the southern cities had a very clear edge across sectors in real estate activity in 2018. Their inherent advantage stems from the more professional and organised approach to real estate - not just post RERA (new realty law) implementation but also in the pre-RERA years,” Kumar concluded. | housing sales in the main southern cities collectively rose by 20 per cent. new housing launches increased by 77 per cent in 2018 to 67,850 units. national capital region (NCR) saw an increase of just 16 per cent in new supply. the main west Indian cities of Mumbai Metropolitan Region (MMR) and Pune, together, saw a mere 17 per cent jump in new residential supply. | Positive |
https://www.moneycontrol.com/news/business/mutual-funds/mutual-fund-wrap-rbis-liquidity-enhancing-steps-a-boon-for-fund-houses-5163071.html | The Reserve Bank of India fired Bazooka 2.0 in response to COVID-19 Pandemic. RBI seems appropriately placed in a 'whatever it takes'
mode to assist financial markets to navigate these unprecedented times.
India is among a handful of countries of G20 group that is projecting positive growth, said the RBI Governor in his speech on April 17.
In a host of measures, RBI started with a 25 basis points cut in reverse repo rate bringing it down to 3.75 percent. Reverse repo is the interest rate which banks receive for parking funds with RBI. This lowering gives banks higher incentive to lend to businesses instead of parking with RBI.
RBI measures that will benefit debt mutual funds --
RBI's measure of additional capital infusion of total Rs 50,000 crore to NABARD, SIDBI and NHB will improve the credit rating of these institutions.
It is expected that better rated credit papers of NABARD and SIDBI will be available for subscription to mutual funds, especially gilt funds, which invest mostly in government securities.
MF investment pool of securities is also expected to benefit from RBI mandate that banks must use 50 percent funds under TLTRO 2.0 for small and mid-size NBFCs.
The targeted long-term repo operations (TLTROs) are a category of funds in Indian banking system to finance NBFCs and Micro Finance Institutions through banks.
With greater capital infusion to NBFCs and MFIs, their credit rating will revive. Higher-rated NBFC and MFI papers will be available for MFs to invest in 2020.
Debt markets reacted positively on April 17 after RBI announcements. "Market reacted positively to RBI announcements with 10Y yield dropping 7-10bps. Shorter term yields dropped more as reverse repo rate was reduced. Corporate bonds yields also fell, especially NBFC and HFCs on TLTRO and special refinance scheme. Markets are still awaiting government stimulus plans and impact on fiscal deficit and gross borrowings,” said Avinash Jain, Head Fixed Income, Canara Robeco MF.
Mutual Funds are largest domestic investors in NBFCs debt papers.
The sequence of defaults by NBFCs since IL&FS, ADAG group, Essel Group had led to MFs side pocketing the default portion in debt schemes that hit NAVs of debt schemes upto 25 percent during 2019.
With RBIs help, NBFCs have now scope to improve their credit ratings.
Another important RBI measure gives both lending entities - the NBFCs and the banks - to avoid bad asset demarcation in their balance sheet for a certain period.
NBFCs are allowed to relax NPA classification for borrowers under moratorium.
Non-banking finance companies can also avail relaxed non-performing assets (NPA) classification to their borrowers, said RBI Governor Shaktikanta Das.
NPA classification for banks will exclude the three-month moratorium period.
Due to ongoing national lockdown since March 25, 2020 till May 3, 2020 the entire month of April has shut down of production, manufacturing, exports and transport except essentials like grocery and medical products.
Industry would have had problems in returning their working capital loans to NBFCs and banks and servicing interest on debts papers owned by mutual funds.
"RBI has reiterated that it stands ready to act with its entire toolkit at an appropriate time to ensure that financial stability is not impaired at any cost,” said Kumar Ramakrishnan, CIO, PGIM Mutual fund.
“We maintain our stance that RBI could cut rates by upto another 50 bps in the next 2-4 months to further stimulate credit growth and ease debt costs for borrowers. Further, additional refinancing facilities aggregating Rs 500 bn to SIDBI, NABARD and NHB should also partly help MFIs as they enjoy credit lines with these lenders,” he added.
“To sum up, the actions of the RBI can be broadly be termed as action points to a) plug the loop-holes observed with the first round of ‘bazooka’ policy actions on March 27th (TLTRO-2 with additional covenants), b) address the sectors/entities/issues which are under immediate stress at the moment (NBFCs, commercial real-estate, even states) and, c) incentivize the banks to lend by deferring their statutory obligations, aiding liquidity and reducing rates,” said Navneet Munot CIO, SBI Mutual Fund. | RBI fires Bazooka 2.0 in response to COVID-19 pandemic. RBI starts with a 25 basis points cut in reverse repo rate. measures that will benefit debt mutual funds will improve credit rating. MF investment pool of securities expected to benefit from RBI mandate. RBI aims to help NBFCs and micro finance institutions. a 'whatever it takes' mode to assist financial markets. | 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.businesstoday.in/magazine/corporate/new-gen-reliance/story/405049.html | If you thought Mukesh Ambani and Mark Zuckerberg sat across a table, assisted by a battery of experts, to frame the Facebook-Jio deal, you are mistaken. Ambanis twin children Isha and Akash led talks for sale of a stake in Jio Platforms (JPL), flying down multiple times to Facebook headquarters in Menlo Park, California, for negotiations. The senior Ambani was given the minutes of the negotiations by the children. The details were shared often at dinner time in Antilla.
The stake sale is a step towards transforming the business empire founded by late Dhirubhai Ambani as a yarn trading company in Mumbai's Masjid Bunder about 63 years ago. One aim is to rid Reliance Industries (RIL) of a bulk of the massive Rs 3.36 lakh crore gross debt accumulated to fund growth businesses - Reliance Jio, Reliance Retail and petrochemicals. The other is to prepare the group for a digital/consumer future. For years, petrochemicals and refining stood taller than others. That is changing. In fact, Ambani doesn't even call RIL an oil and gas conglomerate any more. Instead, it's being positioned as a technology company so that the larger objectives are clear: build three businesses - refining & petrochemicals, digital & telecom and retail - of global scale; cut off financial inter-dependence of these businesses; create debt-free balance sheets.
The JPL-FB Deal
Facebook is buying 9.99 per cent equity in JPL for Rs 43,574 crore. This values the digital and telecom company at Rs 4.62 lakh crore. This has come amid the coronavirus pandemic that has brought the world economy on its knees and a 41 per cent fall in RIL stock price over the last few months. The deal typifies what Ambani once said, "Our fundamental belief is that for us growth is a way of life and we have to grow at all times". JPL signed four more deals within two weeks of the Facebook announcement with American private equity giants - Silver Lake, Vista Equity Partners, General Atlantic and KKR - worth a total Rs 78,562 crore, and launched a rights issue to raise an eye-popping Rs 53,125 crore. Saudi Arabia's $320 billion sovereign wealth fund, Public Investment Fund, is also in talks to pick up a stake in JPL.
The massive fundraising to deleverage RIL is not over. The world's largest publicly listed company, Saudi Aramco, is doing due diligence to buy a 20 per cent stake in the refining and petrochemicals business for Rs 1.14 lakh crore. Aramco will pick up the stake in the newly floated subsidiary, Reliance O2C Ltd, in which oil and petrochemical businesses are being shifted. Ambani has already completed negotiations with British oil giant BP Plc for selling 49 per cent stake in his fuel station business for Rs 7,000 crore. The brand will be renamed as 'Jio-BP. The mission is zero net debt by March 2021. However, the pace at which the deals are being signed, the target will be met by December 2020, says V. Srikanth, Joint Chief Financial Officer, RIL.
RIL is also looking for buyers for a stake in retail holding company Reliance Retail Ventures Ltd. It will also divest the optical fiber investment trust (InvIT), land parcels that it bought for building special economic zones in Mumbai and some financial investments. Ambani had mentioned in the last shareholder meeting that RIL is "de-emphasising" its loss-making shale gas business in the US and will focus only on India, hinting he may sell the US shale gas business, which is bleeding because of crude oil price crash.
The intention seems to be to unlock value for now and convert group companies into technology driven, zero liability, entrepreneurial entities like Alphabet or Microsoft or Amazon. Building three equally strong businesses may also ease transition of power to the third generation - Isha, Akash and Anant. The twins are fully into the business and part of RIL's technological transformation; Anant is yet to join the business.
Reinventing Reliance
Refining and petrochemicals were accounting for 90 per cent of RIL's cash till recently. The money was being ploughed into consumer businesses - retail and telecom - that were growing at a frenetic pace. The retail arm, for years a small player, way behind Kishore Biyanis and Aditya Birla groups businesses, grew at a scorching pace post 2015. In telecom, launched in 2016, cracking into fiefdoms of giants Bharti Airtel, Vodafone and Idea looked nearly impossible. But the bets are paying off. In the January-March quarter, digital and retail businesses combined contributed 35 per cent to RIL cash flows. Refining and petrochemicals contributed 60 per cent.
Building The New
Ambani took the bet to invest nearly Rs 4 lakh crore to build Reliance Jio and the supplementary digital businesses. The effort started 10 years back. Besides debt, he used the large cash flows from refining. Reliance Retail was founded in a similar way in 2006.
The journey was not smooth. In some states, Ambani initially failed to scale up Reliance Retail because of opposition from local kiranas and political parties. However, he persisted, and managed to turn things around in the last five years. Reliance Retail has achieved multifold growth since 2015, and that too during a period when established players such as Future Retail and More weakened and e-tailers like Amazon and Flipkart failed to expand to Tier-II and Tier-III cities. In FY20, retail posted earnings before interest and tax (EBIT) of Rs 8,263 crore, 49 per cent more than in FY19. Its EBIT was Rs 417 crore in 2014/15. The revenue has risen from Rs 17,640 crore to Rs 1.63 lakh crore in the last five years. Reliance Retail is India's biggest retailer today.
Deloitte has ranked Reliance Retail as the fastest growing retail company in the world. It added 30 per cent more space and over 1,500 stores in FY20. A recent Bernstein research report says, "In retail, slower-than-expected footfalls, increase in capital expenditures and higher competition are key downside risks." The company is set to scale up e-commerce venture JioMart for countering Amazon and Walmart-owned Flipkart.
The digital services business, though smaller than retail in revenue, is valued much higher, at Rs 4.9 lakh crore. One reason is fast growth. Reliance Jio Infocomm posted a 87.65 per cent rise in net profit to Rs 5,562 crore in FY20 driven by subscriber additions and third-quarter tariff increase. It posted a 63.5 per cent rise in EBIT to Rs 14,363 crore and a 40.7 per cent rise in revenue to Rs 68,462 crore. Jio continued to extend its lead over rivals in January by adding 6.56 million users even as cash-strapped Vodafone Idea's subscriber base eroded, according to data from the Telecom Regulatory Authority of India. Reliance Jio's subscriber base at the end of January was 376.57 million, while Vodafone Idea was second at 329 million. Jio's subscriber base further increased to 387.5 million at the end of March. Ambani aims to take Jio Fiber to more than two crore households and is targeting 99 per cent population coverage. The company is also planning to target five crore-plus households for cable networks DEN and Hathway.
Mark Zuckerberg, CEO of Facebook, told analysts during the recent earnings call, "Certainly, all the products and technology that we're building to enable that (Jio) partnership are going to be things that we want to do around the world." Facebook, through its WhatsApp platform, brings in synergies for RIL's JioMart initiative. There are also immense possibilities in e-payments, blockchain and social media transactions. Facebook has got one board seat in JPL.
In the traditional business, Ambani wants to switch focus from fuel manufacturing/refining to high-margin petrochemicals as the fossil fuel business is facing hardships due to advent of electric mobility and falling demand due to a global slowdown. RIL has invested about Rs 1 lakh crore to expand petrochemical capacities in Jamnagar, Gujarat. Saudi Arabia has agreed to invest Rs 1.14 lakh crore in Reliance O2C Ltd for a 20 per cent stake.
Ambani wanted to do the Aramco deal quickly in view of his plan to make RIL a net debt free company by March 2021. While the world was waiting for the details of the Aramco deal, the coronavirus pandemic and crash in crude oil prices played spoilsport. It was at this point that Isha and Akash managed to pull off the deal with Facebook.
The Aramco deal could provide RIL financial muscle, says HSBC Global Research. Besides creating a benchmark valuation for RIL's O2C business of Rs 5.7 lakh crore, it will provide an additional Rs 1.1 lakh crore in cash flow, taking it to a strong net cash position from a net debt position, the research firm says in a report. "With a stake in RIL, Aramco would not just have a stake in one of the worlds best refineries and largest integrated petrochemical complexes but also access to one of the fastest-growing markets - a ready-made market for its crude and offering a potentially bigger downstream role in future," says the report.
Zeroing in on Debt
Ambani recently sold the tower InvIT and pipeline infrastructure to Brookfield for Rs 25,215 crore and Rs 13,000 crore, respectively, as the first step to pare debt. RIL has net debt of Rs 1,61,035 crore. The outstanding debt stood at Rs 3.36 lakh crore in March 2020 while cash and cash equivalents were Rs 1.75 lakh crore. The standalone balance sheet has a debt of Rs 2.62 lakh crore, while Jio and Reliance Retail have debts of Rs 23,000 crore and Rs 4,600 crore, respectively.
JP Morgan Equity Research says, "Given increase in debt and continued elevated capex, the deals are welcome and should allow for deleveraging." It says transfer of Rs 70,000 crore debt to two InviTs in tower and optical fibre, pending capital expenditure payments of Rs 50,000 crore and spectrum fee of Rs 20,000 crore are not part of the gross debt of Rs 3.36 lakh crore. However, Bernstein says stake sales and rights issue will reduce net debt to net cash of Rs 50,000 crore by next financial year. Besides, slowing capital expenditure and rising free cash flow will accelerate deleveraging.
Does this mean all challenges have been overcome? India Inc has seen huge investments by global corporations in the past also, including acquisition of Flipkart by Walmart for $16 billion; Essar Oil by Rosneft for $13 billion; and Hutch by Vodafone for $11 billion. In many cases, including Docomo's stake in Tata Tele, Daiichi Sankyos stake in Ranbaxy and Walt Disneys stake in UTV, foreign acquirers burnt their fingers. Chevron, which picked up a 5 per cent stake in Reliance Petroleum, also had to exit in losses. BP Plc had to write off a part of its $7.2 billion investments made in 2011 in RIL's exploration and production assets due to losses. The new entrants in RIL are expecting a more profitable journey.
@nevinjl | facebook is buying 9.99 per cent equity in Jio Platforms (JPL) for Rs 43,574 crore. this value the digital and telecom company at Rs 4.62 lakh crore. sale is a step towards transforming the business empire founded by late Dhirubhai Ambani. he says the aim is to rid Reliance Industries of a bulk of the massive Rs 3.36 lakh crore gross debt accumulated to fund growth businesses. | Positive |
https://www.moneycontrol.com/news/business/real-estate/industrial-and-warehousing-sector-sees-rs-254-billion-investment-in-2-years-report-4691091.html | Representative image
The industrial and warehousing sector has attracted Rs 254 billion worth of investments since 2017, with a growing demand for larger facilities among e-commerce companies and third-party logistics, a report has said.
The inflows are expected to touch Rs 495 billion by 2021, as existing participants expand their portfolios and new players enter the market, says the report by Colliers Research.
“Investments into the industrial and warehousing sector will further increase, as foreign and domestic players expand driven by favourable demand drivers and a simpler taxation regime. Hence, developers may look at collaborating with corporate and government agencies that own land banks,” says Megha Maan, senior associate director, Research at Colliers International India.
The warehousing space has attracted interest from multiple large institutional investors since 2017, signifying a large pool of capital available for the sector.
This transformation has been brought about by government initiatives, global trade dynamics, an influx of technology and evolving consumption patterns.
Occupier preferences are also changing and investor interest is increasing. The industrial and warehousing sector is benefiting from government policy initiatives such as the Goods and Services Tax (GST) implementation and Make in India program.
Also, the uptick in e-commerce-led warehousing demand is visible from significant investments in the space made by leading players.
As per Colliers Research, e-commerce companies have been leasing large spaces in the range of 100,000-500,000 sq ft.
“Occupiers mulling large contiguous warehouse leases, especially in the e-commerce and 3PL (third-party logistics) sectors, should look at select micro-markets in Mumbai and Pune that offer a good mix of industrial and multipurpose warehouses,” said Sankey Prasad, managing director and chairman at Colliers International India.
Bengaluru should also be explored as it offered seamless transfer of goods between states, benefitting from the removal of state-level taxes, he said.
Growing demand
Bengaluru commands an average rent of Rs 16-35 per sq ft a month. The Hosur Road belt in the south of the city has witnessed industrial growth led by the Karnataka Industrial Areas Development Board.
The Hoskote-Narasapura industrial corridor gained prominence due to its accessibility to Sriperumbudur in Chennai, an established automobile hub.
Over the last decade, the Nelamangala-Dabaspete cluster has been emerging as a vital industrial and warehousing location. Heavy industries have been relocating from the Peenya industrial area to Dabaspete for industrial facilities and further into Nelamangala for warehousing reasons, the report says.
The average rent for warehousing facilities in Chennai is14-30 per sq ft per month. The northern cluster has started to see the development of warehouses owing to connectivity with the city’s residential pockets via National Highway 16.
Delhi-National Capital Region (NCR) commands an average rent of Rs 15-25 per sq ft per month. The area caters to the intrinsic warehousing demand and also acts as a key storage and warehousing hub for the neighbouring states of Punjab, Uttar Pradesh, Haryana and Rajasthan, the report says.
The leasing activity was led by third-party logistics operators garnering a 20 percent share in gross leasing in 2018, but a sudden growth in e-commerce has resulted in increased demand for warehouses in the NCR.
The average rent in Mumbai is Rs 18-25 per sq ft per month. The demand for warehousing space in Mumbai is driven by two factors, manufacturing‐led demand and consumption‐led demand.
While major occupiers in the manufacturing industry have begun shifting to nearby cities like Pune, owing to the infrastructure provided by the Maharashtra Industrial Development Corporation, warehousing activities have flourished in Mumbai on account of a large consumer base and port-driven export-import cargo movement. | industrial and warehousing sector has attracted Rs 254 billion worth of investments since 2017. growing demand for larger facilities among e-commerce companies and third-party logistics. inflows expected to touch Rs 495 billion by 2021, says report by colliers research. e-commerce companies have been leasing large spaces in the range of 100,000-500,000 sq ft. | Positive |
https://www.financialexpress.com/industry/now-jio-petrol-pump-ril-bp-start-fuel-retailing-joint-venture-under-this-brand/2019036/ | Global energy supermajor BP plc and Reliance Industries Ltd on Thursday announced the start of their fuel retailing joint venture under the brand ‘Jio-bp’.
BP had last year bought 49 per cent stake in the 1,400-odd petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance Industries Ltd (RIL) for USD 1 billion.
The joint venture, where RIL holds the remaining 51 per cent, has now commenced operations.
Also Read: Fifth deal! KKR to buy 2.32% stake in Jio Platforms for $1.5 billion
“Following initial agreements in 2019, bp and RIL teams have worked closely over the past few months in a challenging environment to complete the transaction as planned,” the companies said in a joint statement, adding the new fuels and mobility joint venture, Reliance BP Mobility Ltd (RBML), has started operations.
Operating under the ‘Jio-bp’ brand, the joint venture aims to become a leading player in India’s fuels and mobility markets.
RBML has received the marketing authorisation for transportation fuels, amongst other necessary regulatory and statutory approvals.
The joint venture will begin selling fuels and Castrol lubricants with immediate effect from its existing retail outlets, which will be rebranded to ‘Jio-bp’ in due course.
“It will leverage Reliance’s presence across 21 states and its millions of consumers through the Jio digital platform. bp will bring its extensive global experience in high-quality differentiated fuels, lubricants, retail, and advanced low carbon mobility solutions,” the statement said.
India’s auto fuel retailing is dominated by public sector oil companies that own the majority of 69,392 petrol pumps in the country. State-owned IOC, BPCL and HPCL own 62,072 petrol pumps and 224 out of the 256 aviation fuel stations in the country.
BP and RIL said they expect the venture to grow rapidly to help meet India’s fast-growing demands for energy and mobility.
“India is expected to be the fastest-growing fuel market in the world over the next 20 years, with the number of passenger cars in the country estimated to grow almost six-fold over the period. RBML aims to expand from its current fuel retailing network of over 1,400 retail sites to up to 5,500 over the next five years,” the statement said.
This rapid growth will require a four-fold increase in staff employed in service stations — growing from 20,000 to 80,000 in this period.
The joint venture also aims to increase its presence from 30 to 45 airports in the coming years.
RIL Chairman and Managing Director Mukesh Ambani said: “Reliance is expanding on its strong and valued partnership with bp, to establish a pan-Indian presence in retail and aviation fuels. RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers.”
Bernard Looney, BP chief executive officer, said India has been leading the way with innovations in digital technology, value engineering and new energy solutions.
“It is a country that will require more energy for its economic growth and, as it prospers, its needs for mobility and convenience will accelerate. bp has a proud history in India spanning over a century. We are honoured to be a strategic partner with Reliance – India’s most valuable company – and pleased that our partnership has grown in both substance and spirit over this past decade,” he said.
The new joint venture aspires to provide Indian consumers with advanced fuels with lower emissions, electric vehicle charging and other low carbon solutions over time.
RBML is also committed to the decarbonisation of its own operations as well as that of its wider ecosystem, the statement said.
With its many investments in India and employing around 7,500 people in the oil, gas, lubricants, and petrochemical businesses, BP is one of the largest international energy companies in India.
In addition to its gas value chain, retail, aviation fuels, and mobility alliance with RIL, BP’s activities include Castrol lubricants, oil and gas trading, clean energy projects through investment in Lightsource bp, IT back-office activities and a new global business services centre.
BP owns 33.3 per cent stake in RIL-operated gas blocks in eastern offshore including the flagging KG-D6 block. | bp bought 49 per cent stake in 1,400-odd petrol pumps and 31 aviation turbine fuel (ATF) stations owned by Reliance Industries Ltd (RIL) last year. joint venture has now commenced operations. operating under the ‘Jio-bp’ brand, the joint venture aims to become a leading player in India’s fuels and mobility markets. | Positive |
https://www.financialexpress.com/brandwagon/leo-burnett-appoints-three-senior-members-in-account-management-team/1830711/ | Leo Burnett India has appointed Ashima Mehra and Maninder Bali as senior vice president while Sarina Baretto joins as vice president. The appointments are in line with the company’s aim to strengthen its account management team.
Ashima Mehra has led brands at Godfrey Phillips India and Reckitt Benckiser where she was spearheading the PO1 team for Dettol in 15 countries, which were developing markets. She brings with her an in depth perception on advertising and marketing as she worked on both the client side and with agencies. Further, she has played an instrumental role in drafting communication strategies for global brands such as Veet, Pepsi, Mountain Dew, Honda, Vodafone, Aditya Birla Group, MakeMyTrip, Tata AIG and Whirlpool.
Maninder Bali, on the other hand, previously worked at Publicis SIngapore as regional business director on P&G’s Safeguard global business. This is his second stint with Leo Burnett, previously Bali was Vice President at Leo Burnett, Mumbai where he led the agency’s marquee account McDonald’s, nationwide.
Read Also: Why Facebook’s move to introduce ads on WhatsApp is a complicated affair
Sarina Baretto has helped steer brands across a wide spectrum of industries including Zee Entertainment Network, Times of India, Femina, L’Oréal, Hotel Leela, Intercontinental, DHL, Polycab, Camlin, HDFC, IndianOil to name a few.
According to Dheeraj Sinha, managing director, India and chief strategy officer, Leo Burnett South Asia, the agency has had tremendous growth momentum which is reflected in both the new business wins as well as the body of work. “To keep up this momentum for the agency it is important to have a leadership team which echoes our new-age thinking and creative approach,” he added.
Leo Burnett India is one of the top agencies in Leo Burnett’s global network of 86 agencies. Known for building India’s top brands based on its Humankind philosophy, the agency believes that “Insightful creativity has the power to change human behaviour”. As a part of the Publicis Groupe, Leo Burnett believes in the Power of One – a platform that helps tell the brand’s narrative across platforms, seamlessly. Present in over 100 countries with over 80,000 professionals, Publicis Groupe is the third largest communications group in the world. Globally, Publicis Communications is the creative communications hub of Publicis Groupe, bringing together the Leo Burnett, Saatchi & Saatchi, Publicis Worldwide, BBH, Marcel, Fallon, MSL GROUP and Prodigious networks.
Read Also: Radio ad insertions dips by 9% in 2019: TAM AdEx | Leo Burnett India has appointed ashima Mehra and maninder Bali as senior vice presidents. Sarina Baretto joins as vice president. the appointments are in line with the company’s aim to strengthen its account management team. the agency is one of the top agencies in its global network of 86 agencies. it believes that "Insightful creativity has the power to change human behaviour' | Positive |
https://www.financialexpress.com/investing-abroad/featured-stories/the-really-big-stock-bull-case-says-fed-stimulus-doesnt-go-away/1977298/ | How willing will the Federal Reserve be just to switch off all the stimulus it rolled out to safeguard markets from the coronavirus? The most plausible answer is “not very,” logic that forms the most aggressive bull case on equities. As anyone who has watched the rocky path to reopening cities and states, it’s hard to know when to sound the all clear in waters as uncharted as they are now. Uncertainty dictates prudence. That’s the case in deciding when to allow people back to work, and will logically guide policy makers, too, when it comes to their measures that have kept markets in working order.
With the S&P 500 already two-thirds of the way back from its bottom, that prospect — that virus-fighting stimulus could linger for months or years after the worst of the pandemic has passed — explains the uncanny confidence of stock bulls in the face of the worst economy since the Depression. As they see it, if even a modicum of economic order is restored and stimulus sticks, it’s a recipe for a melt-up.
“The markets have become addicted to stimulus. That is the key factor that is going to continue to drive risk appetite, just like it did in the last cycle,” said David Spika, president of GuideStone Capital Management, which has about $12.5 billion in assets under management. “Going back to the last cycle, the Fed stayed involved for several years even though we returned to previous employment levels and we returned to previous earnings levels — and the Fed continued to buy bonds.”
Make no mistake: as big a role as reopening has played in the rebound, Federal Reserve largess, alongside trillions of dollars in payouts from Washington, has been as a crucial element lifting stocks. While the path of the virus is unknown — Will there be a second wave? Can a vaccine succeed? — one thing that seems certain is perpetual Fed support.
Policy makers are “not going to be in any hurry to withdraw these measures,” said Chairman Jerome Powell late last month.
That’s comforted equity investors, tamping down concerns over a credit crunch or solvency risk. Case in point: A Goldman Sachs basket of stocks with weaker balance sheets rose 4.3% this week, nearly double a similar group of stocks with healthier finances. Tuesday marked the widest gap in favor of the former since May 2009, when stocks were in the early days of their record bull run.
The embrace is also palpable across the universe of smaller companies, where over a third of firms are expected to lose money and per-share profits are forecast to plummet 95% in the three months ending in June, according to Credit Suisse. The Russell 2000 rose 6.4% in May, its best month versus the S&P 500 in over a year.
Crediting the Fed with boosting risk-assets is nothing new but its open-endedness may be the only way to explain a world in which 20 million Americans have lost their jobs and the S&P 500 is about four big days away from making up all the ground it lost since February. And it’s not just a full comeback that is envisioned. Many Wall Street strategists see the potential for the S&P 500 to go even higher than it was before the outbreak began.
Take Fundstrat Global Advisors’ Tom Lee, for example, who sees the S&P 500 ending the year at 3,450 even as company profits plunge. Or Sophie Huynh at Societe General, who predicts the S&P 500 will rise to 3,500 by the end of 2020. It closed Friday at 3,044.
The U.S. central bank has taken unprecedented steps to combat the economic crisis. It cut interest rates to near-zero and pledged to keep policy easy. It resumed asset purchases, declaring Quantitative Easing (QE) unlimited. The Fed is also buying a wide range of securities, including corporate and municipal debt.
As a result, the central bank’s balance sheet has ballooned to $7 trillion, with roughly $3 trillion added in just three months — roughly triple what was added in the year following the financial crisis in 2008. That increase is showing up in broad measures of money supply, including a gauge called money of zero maturity and Federal Reserve M2 money supply.
Such a surge in liquidity is reassuring the bulls. Michael Darda, chief economist and market strategist at MKM Partners LLC, says it shows there’s more upside potential for stocks than downside risk. A measure called the price-liquidity ratio that plots the market cap of the S&P 500 versus total money supply shows equities actually look cheap, even as earnings collapse. Add to that rock-bottom interest rates on bonds, and a stock bull case is born.
And if such stimulative policies remain alongside an economic recovery, its possible inflation will materialize. Tom Essaye, a former Merrill Lynch trader who founded “The Sevens Report” newsletter, points to the years after the financial crisis, when a liquidity explosion led to surges in asset prices — from stocks to bonds, real estate and gold.
“If past is prologue, the lesson is that we need to admit that this amount of liquidity means that asset inflation will likely be unleashed on the economy in coming years,” he wrote to clients. “That’s something we need to consider even in a slow-growth environment.”
Granted, all bets are off if economies must shut again, unemployment levels stay high and a wave of defaults emerges. Chair Powell has made calls for more fiscal stimulus loud and clear, and the latest beige book from the central bank — a report based on anecdotal information collected by the regional divisions — detailed the devastation that’s still apparent across the U.S. economy.
All the more reason, though, for Fed stimulus to remain if the economy is in need. This past week alone, Chevron Corp. and Boeing Co. announced permanent layoffs. Reports surfaced that SoftBank Group Corp. is planning deep staff cuts too.
“The general expectation is that the Fed is going to maintain its supportive posture,” said John Carey, portfolio manager at Pioneer Investment Management. “That’s definitely one of the factors giving people confidence in purchasing shares — they see very strong support from the Federal Reserve.”
To be sure, such extended policy measures could lead to ills down the road including the potential for run-away inflation, according to Sandip Bhagat, Whittier Trust’s chief investment officer. Still, it’s likely it puts a floor under the stock market for now.
“Don’t naturally assume it to be singularly stimulative with no side effects,” Bhagat said by phone. “But all the stimulus will prevent the market from melting down again, I just don’t know if it will sent it off to the races where S&P 500 3,000 becomes S&P 500 5,000.” | the most plausible answer is "not very," logic that forms the most aggressive bull case on equities. a goldman Sachs basket of stocks with weaker balance sheets rose 4.3% this week, nearly double a year ago. a goldman Sachs basket of stocks with weaker balance sheets rose 4.3% this week, nearly double a year ago. | Positive |
https://economictimes.indiatimes.com/news/economy/agriculture/assam-to-set-up-100-farmers-producers-company-for-ramping-up-agricultural-production/articleshow/76268218.cms | GUWAHATI: Assam has decided to set up 100 Farmers’ Producers Company in the state for ramping up agricultural production, collection and ensuring linkage with the national and international markets.Chief Minister Sarbananda Sonowal today reviewed the functioning of agriculture department city and directed the Assam Seeds Corporation Limited to produce the seeds required by the state’s farmers in the state itself.In order to ensure supply of certified seeds to farmers, the Chief Minister instructed for setting up at least one seed distribution centre in every district. He also asked the department to prepare a detailed action plan for capturing the market of entire Northeast region along with the local markets.Sonowal instructed the Director of Assam Agribusiness and Rural Transformation Project to set up 100 Farmers’ Producers Company in the state for ramping up agricultural production, collection and ensuring linkage with the national and international markets.Youths must be attracted towards farming to achieve the target of ‘Atma Nirbhar Assam’ while adopting latest scientific innovations in the agricultural practices, he said. Opining that a large pool young people could be engaged in the agricultural sector as each company would employ 500 people, Sonowal said that these companies would be instrumental in streamlining linkage with national and international markets.The Chief Minister also directed the agriculture department to provide a combined harvester to each of the 126 assembly constituencies in the state so that farm mechanization activities can be augmented. Notably, the harvester covers three bigha lands per hour along with helping in threshing of paddy.The director of horticulture department apprised the Chief Minister that the state could a earn a total of Rs 357 crore during the 70 days of lockdown period by exporting vegetables to other states apart from fulfilling own requirement.Directing the department to motivate the progressive farmers showing exemplary performance in horticulture production, Sonowal instructed the agriculture department to tie up with Assam Start-up Incubation Centre to provide better market linkage to the farmers to sell their products. During today’s meeting, the issues of tractor distribution under CMSGUY, Fasal Bima Yojna, providing shallow tube-wells etc were also discussed.Sonowal stated the sector held immense potential to revitalize the state’s economy in the post COVID-19 scenario and economic advisory committee constituted for the purpose had also suggested rapid development of the sector. He also stressed on the need for better coordination among agriculture related departments apart from dedication of state’s farmers to capture world market with Assam’s farm products. | chief minister Sarbananda sonowal directed the assam seeds corporation to produce the seeds required by the state's farmers. he also instructed the department to prepare a detailed action plan for capturing the market of entire Northeast region along with local markets. the department will provide a combined harvester to each of the 126 assembly constituencies in the state so that farm mechanization activities can be augmented. | Positive |
https://www.businesstoday.in/current/economy-politics/punjab-national-bank-to-be-merged-with-oriental-bank-and-united--bank/story/376284.html | Continuing the Modi government's push for structural reforms in the banking sector, Union Finance Minister Nirmala Sitharaman on Friday said the government would merge Punjab National Bank with Oriental Bank and United Bank. This has been done after the successful merger of three public sector banks - Bank of Baroda, Vijaya Bank and Dena Bank - earlier this year, the FM said.
The FM said the earlier bank mergers had shown that consolidated banks had shown rapid growth, high profit and valuation gains as a result of scale and synergy benefits.
She said the merger of PNB with OBC and United Bank will make it the second-largest PSB with Rs 18 lakh crore business and second-largest branch network in India.
Consolidated PNB+OBC+United Bank to be 2nd largest #PSB with ~18 lakh cr. business and 2nd largest branch network in India. Scale, nationwide & global presence, and high CASA to drive growth. @PMOIndia @FinMinIndia @PIB_India #PSBsFor5TrillionEconomy pic.twitter.com/Ir63tTBiam August 30, 2019
The FM said banks would play an important role in making India a $5 trillion economy, for that they needed more lending capacity so they could provide better services using modern technology. "Consolidation is the way forward," she said.
The FM said with the merger of these banks, the bigger banks would focus on international markets, while middle-level banks would focus on the national market. The smaller banks would now focus on the regional markets, she said.
The FM said while there were 27 PSBs in 2017, there would just 12 banks from now on, which will be adequately financed.
Edited by Manoj Sharma
Also read: Nirmala Sitharaman press conference LIVE Updates | the government will merge Punjab National Bank with Oriental Bank and United Bank. this follows the successful merger of three public sector banks earlier this year. the merger will make it the second-largest PSB with Rs 18 lakh crore business. the FM said banks would play an important role in making India a $5 trillion economy. she said banks would need more lending capacity so they could provide better services. | Positive |
https://www.financialexpress.com/money/7th-pay-commission-how-government-employees-gained-what-modi-led-centre-may-do-before-2019/1191658/ | 7th Pay Commission: The implementation of the recommendation of 7th CPC for millions of Central government staff and pensioners has affected India’s domestic economy in many ways. It is believed that distribution of salaries as per the 7th CPC recommendations has been one of the reasons behind the speedy recovery of Indian economy. The increase in salaries of those employed in the organised sector led to a spike in demand and consumption that benefited the economy.
The Seventh Pay recommendations were approved by Narendra Modi government on 28 June 2016. As per the recommendation of the 7th CPC, the basic pay of government employees increased by a factor of 2.57. The House Rent Allowance (HRA) was also revised by 105.6 per cent, which was almost the double of pre-CPC level.
Following the Centre, several states also either promised to hike salaries of state government employees on the lines of 7th Pay panel recommendations. Jammu and Kashmir state has already started to provide salaries to its staff as per 7th CPC recommendations.
The increase in HRA as per the 7th CPC also reportedly led to an increase in house rents in small and big cities.
RBI annual report 2016-17 had noted: “The implementation of HRA as per the recommendation of the 7th CPC for central government employees from July 2017 and the possibility of its implementation at the state level should strengthen urban consumption demand. An offsetting impact on aggregate demand could, however, emerge if state governments restrain or scale down capital spending, keeping in view the objective of fiscal consolidation.”
A research paper by RBI’s monetary policy department, reported in April this year, said that increase in HRA for Central government staff affected CPI inflation by nearly 35 basis points. “Ex-post analysis of CPI shows that the 7th CPC”s HRA increase pushed up headline inflation prints gradually from July 2017, with a peak impact of about 35 basis points (bps),” the research paper said.
The 7th Pay Commission was also one of the factors driving India’s economic growth under Modi government since its implementation. The RBI had noted in its annual report 2016-17 that private consumption spending alone contributed 2/3rd of the growth of aggregate demand. In the absence of the implementation of 7th Central Pay Commission recommendations and One-Rank-One-Pension (OROP) for defence personnel, India’s growth could have been lower by 2 percentage points, the RBI report had said.
” In fact, absent the implementation of the 7th Central Pay Commission and one-rank-one-pension (OROP) for defence services embedded in government consumption, real GDP growth would have been lower by 2 percentage points. Private consumption spending alone contributed two-thirds of the growth of aggregate demand,” RBI said.
Target 2019
Central government employees are demanding a hike in the minimum salary beyond the recommendations of 7th Pay Commission. A website for bureaucrats claims Modi government will likely increase salaries of Central government employees beyond 7th pay Commission recommendations before 2019 General Elections. FinancialExpress.com couldn’t confirm this news.
Some reports, however, say the Central government has not considered this matter at any level. | the basic pay of government employees increased by a factor of 2.57. the house rent allowance (HRA) was also revised by 105.6 per cent. several states also promised to hike salaries of state government employees. the 7th Pay Commission was also one of the factors driving india's economic growth. the RBI had noted in its annual report 2016-17 that private consumption spending alone contributed 2/3rd of the growth of aggregate demand. | Positive |
https://www.financialexpress.com/industry/technology/evolving-content-consumption-pattern-in-post-covid-world/2025160/ | By Kapil Gulati
The current outbreak of the pandemic has taken the world by the storm. It is currently a global health crisis that the world is grappling with. To prevent further spread of the disease, governments across the world have announced lockdown as the first step. People at home are now finding new ways to keep themselves engaged and entertained.
This lockdown has also witnessed a drastic increase in media consumption. As per a report, in the first phase of India’s lockdown, the total TV consumption grew by 37% and crossed a record 1.21 trillion minutes. The rising consumption of OTT channels, music streaming apps has made content consumption an individual activity. This has resulted in increased online consumption, high volume exposure to OTT platforms. As per a report by The Boston Consulting Group, ‘Indian OTT market to reach $5 billion in size by 2023. This growth is being driven by rising affluence, increase in penetration of data into rural markets and adoption across demographic segments. The online music streaming apps are also booming in India. According to the findings of the Digital Music Study 2019, brought out by the Indian Music Industry, Indians spend more time listening to music than the rest of the world. An Indian typically spends 19.1 hour per week listening to music. Thanks to the cheap data and smartphone penetration, music consumption in India will also expand in rural areas- giving rise to regional music segment.
As per a report, by InMobi Pulse, young Indians in the age group of 25 – 34 are tech savvy, rely on technology to get work done and remain informed and entertained. As social distancing becomes the new norm, it has become more important to be digitally tethered with team members and colleagues. Staying connected digitally has its benefits, however, one would require enhanced audio quality in order to communicate effectively within the organisation.
With such evolutionary changes, the mode of consumption of content has also evolved. Earlier, headphones were single sided heavy speakers which was to be held onto one ear to communicate. This has slowly evolved to the neckband design which came in the early 2000. While headphones remain a popular category, brands also started focusing on earphones as it was portable and easy to carry, along with great sound quality.
Currently, the wireless earbuds are revolutionizing the entire industry. The smartphone makers are now doing away with the 3.5 mm headphone jack to make wireless headphones more convenient and appealing to customers. People are now looking for seamless and hassle-free immersive audio experience, thereby creating a need for the technologically superior truly wireless earbuds. The fact that the upcoming wireless earbuds have evolved with longer battery life, better Bluetooth compatibility, enhanced audio quality, and ANC for noise free listening- due to which this segment is increasingly making it one of the favourite gadget categories amongst consumers. People are willing to pay more for a superior/premium sound experience. Fitness enthusiasts too prefer true wireless earbuds as it provides the ease of operation, and ease of carrying a device, while at the gym, running or working. According to a report by IDC, Truly Wireless Stereo (TWS) accounted for 23.1% to the overall earwear category. TWS alone grew at 300.7% YoY.
The truly wireless segment has made massive strides with features such as superior audio quality, immersive surround sound, sweat-proof, customised fitting for a more comfortable experience-which has further enhanced the audio experience for consumers. The increasing popularity and adoption of smartphones and other mobile devices is further bringing a positive impact on the industry. The rate of OTT consumption and music streaming apps will continue to grow- especially with the 5G roll out in the coming years- which will further support the evolution of the industry.
(The author is Director, Consumer Segment, Sennheiser India. Views expressed are personal.) | the global health crisis is ravaging the world. governments have announced lockdown as the first step to prevent further spread of the disease. in the first phase of India’s lockdown, the total TV consumption grew by 37% and crossed a record 1.21 trillion minutes. OTT channels, music streaming apps have made content consumption an individual activity. an Indian typically spends 19.1 hour per week listening to music. | Positive |
https://www.moneycontrol.com/news/business/real-estate/bengaluru-hyderabad-to-remain-hot-picks-for-it-cos-renting-office-space-colliers-3238261.html | 7) City: Bengaluru | Country: India | Tuition fees for international students: $100 per year (Image: Wiki Commons)
Technology companies that rent office spaces in India will continue to prefer Bengaluru and Hyderabad over other cities over the medium term, according to a new report by Colliers.
These companies' demand for office space in Bengaluru and Hyderabad will drive rent growth there. Colliers expects rent in the two cities to grow at 4.1 percent a year between 2018 and 2021 and sees the growth rate sustaining for several years after.
Given the stable outlook for rental income, capital values in the two cities are also expected to rise at a similar 3-4 percent rate.
This would mean that Bengaluru's high net yield of 8.9 percent persists, driving continued investor demand for office assets, Colliers said in the report, which was titled 'Top Occupier Locations in Asia: Implications for Investors'.
The Indian office space market is dominated by technology companies, which account for 60–70 percent of the total gross absorption. And Bengaluru, with office stock of 141 million sq ft (13.1 million sq m) represents about a quarter of the national total.
From an investment perspective, Indian cities, notably Bengaluru, offer high growth potential in the long run, in terms of both rent and capital value. With its significantly high net yield, Bengaluru also happens to be Asia's highest-yielding major office market.
The report is based on a comprehensive study of 16 cities in developed and emerging markets across Asia and examines 50-60 criteria across socio-economic, property and human factors to determine the best occupier locations in Asia.
“The investment momentum in Indian realty is expected to continue in the back drop of policy reforms and enhanced transparency coupled with strong growth fundamentals in cities such as Bengaluru. The measures taken by the government to improve the business environment has already started getting reflected in indicators like India’s 'ease of doing business' ranking which would further increase the attractiveness of India as an investment destination," said Joe Verghese, Managing Director, Colliers International India. | technology companies will continue to prefer Bengaluru and Hyderabad over other cities. the two cities will see rent growth between 2018 and 2021. the high net yield of 8.9 percent persists in the two cities. from an investment perspective, Indian cities, notably Bengaluru, offer high growth potential in the long run. with its significantly high net yield, Bengaluru also happens to be Asia's highest-yielding major office market. | Positive |
https://www.financialexpress.com/industry/technology/apple-now-lets-you-buy-custom-macbook-and-mac-pc-configurations-in-india-if-you-can-afford-them/1973382/ | Apple is finally adding a configure-to-order (CTO) or build-to-order (BTO) option for MacBook and Mac PC buyers in India. This means MacBook and Mac PC buyers in India can now opt for “specific” RAM, ROM, or graphical power configurations as per their need and budget from Apple Authorised Resellers. Apple now offers such opt-ins across its entire Mac portfolio including MacBook Air, Mac Mini, iMac and basically every other Mac computer or laptop that’s currently sold in India.
Configure-to-order or build-to-order has existed in the Western markets like the US for some time now, especially after Apple started making computers and laptops so high-end, it seemed like borderline insane for average buyers. These are configurations Apple usually talks about at length at its keynote events and highlights in press releases, literally showing off how powerful things could get should you need and afford them.
In India, however, because the option to order custom configurations wasn’t available (until now), buyers had to make do with select basic, sort of entry-level models of Mac computers and laptops, without customisations. Take the recently launched 13-inch MacBook Pro (2020) for instance. The 13-inch MacBook Pro for 2020 can go up to 10th-generation quad-core Intel Core processors with Turbo Boost speeds of up to 4.1GHz, up to 32GB RAM, and up to 4TB SSD storage.
But in India, the 13-inch MacBook Pro was launched and made available in two processor configurations. While the base model shipped with a 1.4GHz quad core Intel Core i5 Gen 8 (Turbo Boost up to 3.9GHz) processor, the top-end model came with a 2.0GHz quad core Intel Core i5 Gen 10 (Turbo Boost up to 3.8GHz) processor. The base model was paired with 8GB of 2133MHz LPDDR3 RAM and either 256GB or 512GB SSD, while the top-end model came with 16GB of 3733MHz LPDDR4X RAM and either 512GB or 1TB SSD storage.
With configure-to-order in place, buyers in India can now ask for specific upgrades. Apple will deliver these custom Mac laptops and computers to buyers in about a month’s time depending on availability of components.
Apple is in the midst of perhaps its biggest India push at this point of time with CEO Tim Cook being quite vocal about India as a ‘key’ market for Cupertino’s growth in the future even as it sees sales dip in its home market. All its focus has been on the iPhone so far, but it seems, Apple has finally started to widen its horizons by adding the Mac to that list.
Apple is gearing to launch its first online store in India this year, and its first physical retail store here in 2021. The move will also help Apple bring its hallmark services like Apple Care to India as is so Apple users here would be able to make more out of their purchase. | configure-to-order (CTO) or build-to-order (BTO) option added. buyers in India can now ask for specific upgrades. configurations are available across the entire Mac portfolio. this includes MacBook Air, Mac Mini, iMac and basically every other Mac computer or laptop that’s currently sold in India. if the configurations aren’t available, buyers will have to make do with basic entry-level models of Mac computers and laptops. | Positive |
https://www.businesstoday.in/opinion/perspective/economic-survey-2020-can-gains-under-thalionomics-be-credited-to-government-agri-schemes/story/395117.html | The Economic Survey 2019-20 penned by Chief Economic Advisor Krishnamurthy V Subramanian attempts to explain the economics to the masses by using 'Thalinomics', which, as the Survey says, is rooted in something they encouter eveyday - a plate of food, or a 'thali'.
The 20-page chapter on 'Thalinomics' concludes that an average household with two vegetarian thalis in a day has gained Rs 10,887 per year since 2015-16. Similarly, an average household that eats at least two healthy non-vegetarian thalis per day gained around Rs 11,787 on average during the same period.
Let us try to understand the 'gains', factors impacting prices, and other related issues:
ALSO READ: Economic Survey 2020: The thali, India's own Big Mac Index
Moderation in inflation post 2015-16
The moderation in inflation actually contributed to gains for a common man eating two thalis a day. In fact, the period before 2015-16 was the period of high inflation in India. Take for instance, the average inflation during 2012 to 2013 was as high as 9 per cent plus. Later in 2014 to 2015, CPI inflation stuck at around 5 per cent. It actually started moderating from 2017 when the inflation index was 2-3 per cent. The year 2018 saw inflation going further down to lowest levels.
Clearly, a major fall in inflation contributed to 'gains' for a common man. Be it thali or other items, a common man is the most-affected by high inflation or gains the most when inflation is under control.
RBI's new inflation targeting regime
The country started an inflation targeting regime in 2016 by setting up a six-member monetary policy committee (MPC) to decide the policy rates. This was a global standard. The Parliament actually mandated the RBI to target a 4 per cent inflation level with a deviation of +/-2 per cent. This new regime also contributed to lower inflation and hence lower prices. The tight liquidity condition also impacted the inflationary pressure in the economy.
A big credit goes to the inflation targeting regime, which the Survey doesn't talk about or give credit to.
ALSO READ: Economic Survey 2020 pushes for privatisation of education, flexible labour laws
Linking lower thali prices gains to pro-agri or farmer schemes
The Survey gives credit to government schemes for improving agricultural productivity. "Many reform measures were introduced since 2014-15 to enhance the productivity of the agricultural sector as well as efficiency and effectiveness of agricultural markets for better and more transparent price discovery," states the Survey. The document lists schemes like per drop more crop, crop insurance, soil card, etc for gains for a common man in getting a thali meal.
However, the Survey doesn't provide any data on productivity gains, and the direct impact of schemes to productivity gains in agricultural commodities.
Inflation in healthcare and education
The common man also suffers or pays more for inflation in healthcare and education. The cost of healthcare and education has really shot up in the last few years for a common man. A common man with a family of five ends up spending more in totality in a year.
ALSO READ: Economic Survey 2020: CEA Subramanian sees fiscal slippage in FY20
Affordability and the slowdown in the economic activity
Using the annual earnings of an average industrial worker, the Survey has found that affordability of vegetarian thalis improved 29 per cent from 2006-07 to 2019-20, while that for non-vegetarian thalis improved by 18 per cent. "Affordability of thalis vis-a-vis a day's pay of a worker has improved over time, indicating improved welfare of the common person," it states.
Isn't there a correlation between the economic activity and the income levels of a common man? The country's GDP has been falling over the last 3 years. It has impacted the income and also affordability. In addition, demonetisation and GST have resulted in job losses at lower levels. The income levels of a large workforce has also stagnated in the last few years. There are also instances of fewer jobs being created because of over capacity in many sectors.
The study, however, doesn't capture this part. At the same time, the incomes of people have also been impacted because of lower interest in deposits and other savings schemes.
MUST WATCH: What is 'Thalinomics', the concept mentioned in Economic Survey? | the Economic Survey 2019-20 penned by Chief Economic Advisor Krishnamurthy V Subramanian attempts to explain the economics to the masses by using 'Thalinomics' the 20-page chapter on 'Thalinomics' concludes that an average household with two vegetarian thalis in a day has gained Rs 10,887 per year since 2015-16. an average household that eats at least two healthy non-vegetarian thalis per day gained around Rs 11,787 on average during the same | Positive |
https://www.businesstoday.in/sectors/banks/rbi-announces-liquidity-boost-of-rs-374-lakh-crore-amid-coronavirus-outbreak/story/399382.html | In a bid to maintain stability in the financial system in the wake of coronavirus pandemic, Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said that Rs 3.74 lakh crore liquidity will be injected into system through various measures.
Shaktikanta Das said that the RBI has already injected liquidity of Rs 2.8 lakh crore in the financial markets through various instruments, which equal to 1.4 per cent of GDP. "Along with today's measures liquidity measures equal to 3.2 per cent of GDP. RBI will take continuous measures to ensure liquidity in the system," Das said while announcing the decisions taken by the Monetary Policy Committee (MPC).
As part of liquidity infusion measures, the central bank announced a massive 75 basis points cut in repo rates to revival economic growth which has been hit hard by the COVID-19 outbreak. The reverse repo rate has been slashed by 90 basis points to 4 per cent.
Besides, the cash reserve ratio (CRR) of all banks has been reduced by 100 basis points to 3 per cent from 4 per cent, with effect from the fortnight beginning 28 March for a period of 1 year. This is expected to release Rs 1.37 lakh crore liquidity in the market, the RBI chief said.
Also Read: Banks free to defer payment of EMIs by 3 months! RBI gives permission
CRR is the percentage of deposits that banks have to mandatorily keep with the central bank. The reduction in CRR has been announced after seven year. It was last reduced in February 2013 by 25 basis points.
The central bank will also conduct repo operation of up to Rs 1 lakh crore to infect liquidity into the market.
Das said these measures will result in total liquidity injection of Rs 3.74 lakh crore to the system. This has been done to allow banks to lend more to business rather than deposit it with RBI. These measures will enable the RBI to have better control on the liquidity situation in the system and mitigate the negative effect of COVID-19 on the economy.
Also Read: Shaktikanta Das Press Conference Live: RBI chief announces loan payment relief, Rs 3.7 lakh crore liquidity boost
He also assured the public that the banking system in India was safe.
Among others, the RBI announced that all banks, lending institutions may allow a three-month moratorium on all loans. Besides, banks lending institutions are allowed to defer interest on working capital repayments by three months. | RBI governor says liquidity measures equal to 3.2% of GDP. reverse repo rate cut by 90 basis points to 4%. RBI also announces three-month moratorium on all loans. meanwhile, banks may allow a three-month moratorium on all loans. RBI says it is a "very positive" decision. a spokesman for the RBI says the move is a "very positive" | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/decade-long-bull-market-heats-up-in-us-as-2019-gain-hits-22/articleshow/71885579.cms | It may be old but it’s not slowing down. A bull market that traces its lineage to the depths of the financial crisis is revving up again, notching its fourth straight weekly gain and pushing its gain in 2019 above 22 per cent.After wavering at mid-year amid a US-China trade war and recession anxieties, American stocks are back in melt-up mode, ending three of the past five sessions at a record. While nobody knows if it’s getting late for this decade-old rally, gains like these have been common at the tail end of bull markets past. A study by Bank of America Corp on equity peaks since 1937 shows that being uninvested in the last year of an advance meant foregoing one-fifth of the rally’s overall return.The S&P 500 powered to a new record Friday after an unexpectedly strong hiring report offered hope that the labor market can propel consumers to keep spending and extend the record-long expansion despite weak business investment and trade tensions. Stocks got a brief boost and the dollar pared losses after China’s Ministry of Commerce said trade negotiators had achieved a “consensus in principle” with the US.The latest economic data come after the Fed lowered rates Wednesday and signaled it is unlikely to make further changes, up or down, any time soon. That sent stocks to a record, before a batch of weak economic data and renewed worries over trade weighed on the measure Thursday.The S&P 500 is up 1.5 per cent in the week. Fed vicechairman Richard Clarida reiterated in Bloomberg Radio interview that monetary policy is “in a good place” and the consumer is strong. The jobs report “reinforces the thesis that the economy is hanging in there with steady growth thanks to the consumer, jobs, low rates, strong housing and that the global picture is weak,” said Alec Young, MD of Global Markets Research at FTSE Russell.Friday’s good news on the trade front follows a tough Thursday session that saw markets rattled as Chinese officials cast doubts about reaching a comprehensive long-term trade deal with the US. | american stocks are back in melt-up mode, ending three of the past five sessions at a record. the surge comes after strong hiring report and strong dollar. the latest economic data come after the Fed lowered rates. the latest economic data come after the Fed lowered rates. it is unlikely to make further changes, up or down, any time soon. the latest economic data come after the. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/fomo-in-travel-linked-stocks-no-it-seems-to-be-value-buying/articleshow/79619578.cms | MUMBAI: Progress on the Covid-19 vaccine has brought travel-related stocks – be it hotels or airlines – alive again. While analysts see value in some pockets, it is not the time for investors to let FOMO (fear of missing out) take over.Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have jumped more than 25 per cent over last one week, while those of SpiceJet have jumped nearly 31 per cent. InterGlobe Aviation has risen 22 per cent to scale a 52-week high of Rs 1,767 on Friday.“It has largely to do with the economy opening up, and it is expected that normalcy will resume as the vaccine seems closer than before,” said Deven Choksey, Group Managing Director, KR Choksey Investment Managers.“The fundamentals of these companies will take time to improve, and the market is possibly running ahead of expectations. One should prefer fundamentally strong companies where there is conviction in the business story. The FOMO factor cannot come into play here,” Choksey said.The government is expecting two Covid vaccines — Oxford-AstraZeneca’s Covishield and Bharat Biotech’s Covaxin – to be available by January and four more by the end of April, increasing the prospects of adequate supplies to immunise some 30 crore population by July.Meanwhile, Serum Institute of India, the world's largest vaccine maker by the number of doses produced, has sought government approval for emergency use of the coronavirus vaccine that it is developing with the University of Oxford and British drugmaker AstraZeneca.This pharma firm is the second to do so, after US firm Pfizer sought approval from the drug regulator – DCGI (Drugs Controller General of India) – for its Covid-19 vaccine, which has been cleared by the UK and Bahrain.Among the hospitality stocks , Indian Hotels has climbed more than 10 per cent in last one week, whole Lemon Tree Hotels has jumped 34 per cent. Chalet Hotels has added 33 per cent over last one week.Sanjiv Bhasin, Director of IIFL Securities, said the real advantage was if you picked it up when there was abysmal pressure on the stocks, but it would be difficult to justify the price point as there is a constant worry of a second wave and more.“However, if you have a longer-term view, there is so much of pentup demand and feeling of people for a vacation or going out, that it will be humungous,” said Bhasin.“It may take three to six months, but the Indian investor or the consumer is extremely resilient,” he said.Also, the traction in these stocks comes at a time when the equity indices are at all-time highs, and expensive valuations have prompted investors to go value hunting in beaten-down names.The travel-linked stocks were the worst hit after the government announced a lockdown late March, and the spread of the worsened, prompting people to drastically cut work and leisure-related travel. Most people are undertaking only essential travel.Rahul Shah, VP for Equity Advisory at Motilal Oswal Financial Services, said there is a lot of value in a few stocks in the hospitality pack.“Obviously the way the market has run up, these stocks have also run up, but the valuations are still justified and there could be some more momentum in these names. Travel has picked up, and hospitality is going to do well,” Shah told ETNow last week.“On top of the mind, Indian Hotels remains a clear winner and there is a lot of value in the stock at the current level. I would suggest going long on Indian Hotels for those who have a horizon for one year or so,” he said. | shares of Indian Railway Catering and Tourism Corporation (IRCTC) have jumped more than 25 per cent over last one week. those of SpiceJet have jumped nearly 31 per cent. interglobe aviation has risen 22 per cent to scale a 52-week high of Rs 1,767 on friday. government is expecting two Covid vaccines — Oxford-AstraZeneca’s Covishield and Bharat Biotech’s Covaxin — to be available by January | Positive |
https://www.moneycontrol.com/news/business/markets/deploy-call-ratio-back-spread-for-nifty-in-first-half-of-february-series-shubham-agarwal-3508191.html | Shubham Agarwal
Last week started on a strong note with Nifty breaching its psychological mark of 11,000 and moving higher to 11,100 level. However, the end of the week saw some profit booking emerging and Nifty closed the week with a minor gain of 0.4 percent.
However, aggressive long open interest (OI) of 16 percent remained in the system. Bank Nifty too saw positive bias shaping up with Index registering a gain of 0.71 percent with an OI jump of 21 percent on a w-o-w basis.
With the introduction of weekly option in the Nifty index from 11th February, it would provide decent trading opportunities to traders and investors for hedging short-term events and taking advantage of volatility differentials.
Severe selling in ADAG group stocks along with earning impact on Tata Motors saw panic among traders. Media and Auto (apart from Tata Motors) saw short covering drive.
Fresh short emerged in PSU banks, pharma stocks. On the other hand, IT stocks like Infosys, Tech Mahindra continued to outperform with gains of 1.8 percent on a w-o-w basis.
Volatility Index, India VIX is back in its lower regime of 12-16 level post budget keeping undertone positive. An uptick above 17 could prove detrimental to the ongoing momentum.
OI PCR during the week saw upsurge to 1.81 from earlier week level of 1.63 due to aggressive activity in 11000-11200 puts.
However, Friday’s session saw profit booking emerging with cool-off in PCR to 1.58. With PCR back to its average level provides a decent headroom for positive momentum to continue.
Participant activity suggests Foreign Institution Investor (FII) renewed interest in Indian markets as they added net 48,278 contracts on the index long side.
Further, in the Index Options too, they added Synthetic long via Call long and Put Short of 53,158 contracts while keeping adequate hedge in place.
The Nifty Option data for the week saw aggressive built up in 11,000 Put of ~1.4 mn shares while Call writers were active at 11100 to 11300 strikes.
With multiple support in place at 11,000-10,700 strikes and highest resistance coming at 11,000 strikes, we could see strong short covering on a sustained move above 11,000.
Considering strong long built-up in futures supported by an upward shift in options band and falling volatility continues to keep undertone positive in the market. Thus, a bullish strategy Call Ratio Back Spread is recommended.
Call Ratio Back Spread is an extremely bullish strategy that expects a good up move in the underline. The strategy is best placed in the first half of the series as the lower time decay works in our favor.
Under this strategy, we are selling a 1 ATM Call option while simultaneously buying 2 lots of OTM Call option. The maximum loss in the strategy is restricted while the profit is unlimited. A rise in Volatility along with sharp directional move could work in favor of the strategy.
The author is CEO & Head of Research at Quantsapp Private Limited.
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | Nifty closed the week with a minor gain of 0.4 percent. but aggressive long open interest (OI) of 16 percent remained in the system. bank Nifty too saw positive bias shaping up with Index registering a gain of 0.71 percent with an OI jump of 21 percent on a w-o-w basis. despite the weakness in ADAG group stocks, media and auto saw short covering drive. | Positive |
https://economictimes.indiatimes.com/news/international/business/ifsc-can-be-gateway-for-international-business-provide-financial-services-expert-committee/articleshow/78247284.cms | The International Financial Services Centre (IFSC) can become a gateway for international business and provide a comprehensive range of financial services to Indian diaspora and others, according to a report by an expert committee constituted by the International Financial Services Centres Authority (IFSCA).The IFSCA committee submitted its interim report on development of international retail business in the IFSC which focused on the banking sector, a release said on Monday.The committee’s subsequent reports will address other key verticals such as insurance, asset management and capital markets, it added.On August 3, the Injeti Srinivas-led IFSCA set up a panel of industry experts, chaired by Pradip Shah , chairman at Indasia Fund Advisors , to draw up a plan to develop international retail business at the IFSC.The members of the committee included G Srinivasan, former CMD of New India Assurance, Siddhartha Sengupta, former DMD of State Bank of India, Shyamal Mukherjee, chairman at PwC, Prakash Subramanian, head – strategy, Standard Chartered Bank, Dipesh Shah, head, GIFT IFSC and Nitin Jaiswal, head of government affairs and strategic relations, Bloomberg Singapore.The government envisages the IFSC as a global hub for international financial services on the lines of London, Hong Kong , Singapore and Dubai.“Our vision is to establish GIFT IFSC as a dominant gateway for global financial flows into and out of India, and simultaneously emerge as a major global financial hub,” Srinivas said. | the IFSC can provide a comprehensive range of financial services to the Indian diaspora and others. the committee submitted its interim report on development of international retail business in the IFSC. the committee’s subsequent reports will address other key verticals such as insurance, asset management and capital markets. the government envisages the IFSC as a global hub for international financial services on the lines of London, Hong Kong, Singapore and Dubai. | Positive |
https://www.financialexpress.com/economy/atal-innovation-mission-how-modi-government-is-building-indias-start-up-eco-system/1508638/ | One of the biggest challenges faced by the Modi government was the creation of a robust start-up eco-system that was dominated by traditional family run businesses. After assuming the power in May 2014, Prime Minister Narendra Modi had said that the future of Indian economy was dependent on its ability to develop the cutting edge technology that can secure a place for the country in the fourth Industrial revolution. However, the country lacked the institutional mechanism to support and encourage innovators and entrepreneurs. Among the several steps taken by the government since 2014 is the launch of Atal Incubation Centres to lend support to those start ups that have been considered risky propositions by traditional investors.
The cabinet on Wednesday approved fresh funding of Rs 1,000 crore for Atal Innovation Mission to help thousands of start-ups test their ideas, get market access and acceptability in the absence of formal funding. “The schemes and government funding in supporting the initial stages of the entrepreneurial journey is critical,” said Abha Rishi, CEO of Atal Incubation Centre at Birla Institute of Management and Technology in Greater Noida.”This gives them a good platform with a pretty strong incentive to come out and try their ideas and create a product that is ready to face the market,” she said. Atal Innovation Mission is the brain child of the country’s apex planning body, NITI Aayog.
The programme develops innovation right from the school level to college and industry levels through Atal Incubation Centres, Atal Community Innovation Centres, Atal Tinkering Labs and Atal New India Challenges. Through the fresh round of funding, the government hopes to establish 100 Atal Incubation Centres across the country, each eligible to get a grant of up to Rs 10 crore for supporting 50-60 start-ups in the first five years.
“We got Rs 5.5 crore funding under the Atal Incubation Center scheme and we use this money to curate and support start-up ideas through our three-tier system called Khoj, Gurukul and Udaan which are basically three phases of discovery, establishment and expansion. We provide them support including free accommodation for three to six months to work and test on their ideas,” Abha Rishi told Financial Express Online.
Atal Incubation Centres and Atal New India Challenges are crucial for creating employment as the NDA government has followed a cautious policy of promoting employment through entrepreneurship. Prime Minister Modi has often talked about turning India’s demographic advantage, India’s educated youth into job givers rather than job seekers.The government said these more than 100 incubators would support 5,000 to 6,000 start-ups with a very high potential for employment creation. | government has launched atal incubation centres to help start-ups test their ideas. the programme develops innovation right from school level to college and industry levels. each eligible to get a grant of up to Rs 10 crore for supporting 50-60 start-ups in the first five years. the government hopes to establish 100 Atal Incubation Centres across the country. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/dow-soars-over-11-in-strongest-one-day-performance-since-1933/articleshow/74801968.cms | The Dow soared on Tuesday to its biggest one-day percentage gain since 1933, after U.S. lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism following the biggest selloff since the financial crisis.All three main U.S. stock indexes rebounded strongly from Monday's brutal selloff as the coronavirus outbreak forced entire nations to shut down.Senior Democrats and Republicans said they were close to a deal on a $2 trillion stimulus bill, aimed at providing financial aid to Americans out of work and help for distressed industries.The expected legislation adds to aggressive action announced by the Federal Reserve in recent days, including purchase of corporate bonds and announcing that the U.S. central bank will make direct loans to companies.King Lip, chief investment strategist at Baker Avenue Asset Management in San Francisco, said expectations on the stimulus bill were driving optimism on Wall Street, but said his firm was still waiting to buy back into the market."With all of this stimulus, we just need a catalyst to spark the fire," Lip said. "That spark will be a peaking of the cases, and when it starts to come down, I think that's when everything gets lit up."Investors were also pleased after President Donald Trump said on Monday he was considering how to restart parts of business life when a 15-day shutdown ends next week, even as the highly contagious virus spreads rapidly and poorly equipped hospitals struggle with a wave of deadly cases.A separate proposal in the U.S. House of Representatives to grant airlines and contractors a $40 billion bailout lifted the S&P 1500 airlines index by 15%.The severity of the spread of COVID-19 and expectations of aggressive stimulus measures have whipsawed financial markets and ended Wall Street's 11-year bull run. Boeing Co powered the Dow's gains, jumping nearly 21% after Chief Executive Dave Calhoun said the planemaker expected the 737 MAX jet to return to service by mid-year. Its shares have lost nearly two-thirds of their value so far in 2020.Data on Monday showed U.S. business activity hit a record low in March, bolstering expert views that the economy was already in a recession.Traders were still weighing the uncertainty of the path of the coronavirus outbreak."We don't know how long it's going to take to peak. We don't know how to treat it. We don't have a vaccine. So all of those uncertainties are causing a myriad of aftershocks," said Nancy Perez, senior portfolio manager at Boston Private Wealth in Miami.The Dow Jones Industrial Average soared 11.37% to end at 20,704.91 points, while the S&P 500 jumped 9.38% to 2,447.33. The Nasdaq Composite rallied 8.12% to 7,417.86.The S&P energy index jumped 16.3%. The big banks index jumped about 13%, tracking an increase in U.S. government bond yields.Just 11 S&P 500 stocks ended lower.Advancing issues outnumbered declining ones on the NYSE by a 8.53-to-1 ratio; on Nasdaq, a 6.22-to-1 ratio favored advancers.The S&P 500 posted no new 52-week highs and four new lows; the Nasdaq Composite recorded four new highs and 85 new lows.Volume on U.S. exchanges was 15.3 billion shares, compared to the 15.9 billion-share average for the full session over the last 20 trading days. | the Dow soared to its biggest one-day percentage gain since 1933. lawmakers say they are close to a deal on a $2 trillion stimulus bill. the coronavirus outbreak forced entire nations to shut down. the u.s. economy is expected to recover in the coming months. a separate proposal in the house of representatives lifts the s&p 1500 airlines index. | Positive |
https://economictimes.indiatimes.com/news/economy/finance/indian-economy-to-start-recovering-from-late-fy20-report/articleshow/71309871.cms | Hello Tata, Goodbye Wistron: Anatomy of a Takeover Deal The Tata Group’s acquisition of Wistron’s manufacturing facility, which will make it the first Indian firm to assemble iPhones, is worth a total $750 million inclusive of debt, said people with knowledge of the matter. Both sides signed the takeover deal on Wednesday, they said.
India Graduates Summa cum Laude, Beats China Grades India has edged out Mainland China to become the most represented country in the QS World University Rankings: Asia 2024 for the first time ever, reflecting its higher education system’s rising prominence amid steps taken towards increasing research output, academic recognition and internationalization. | both sides signed the takeover deal on Wednesday. both sides will make it the first Indian firm to assemble iPhones. india has edged out Mainland China to become the most represented country in the QS World University Rankings: Asia 2024 for the first time ever. Mainland china is the most represented country in the rankings. a total of $750 million is being paid out by both sides. | Positive |
https://www.moneycontrol.com/news/technology/coronavirus-impact-whatsapp-global-usage-spikes-to-51-during-pandemic-5075531.html | technology Coronavirus impact | WhatsApp global usage spikes by 51% during pandemic The most significant usage was observed among people between the age group of 18 and 34. | WhatsApp usage spikes by 51% during pandemic. most significant usage was observed among people between the age group of 18 and 34. WhatsApp is the most popular messaging app on the web. the most significant usage was among people between the age group of 18 and 34. a total of 1.2 million people use WhatsApp every day. a total of 1.2 million people use WhatsApp every day. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/fomo-in-travel-linked-stocks-no-it-seems-to-be-value-buying/articleshow/79619578.cms | MUMBAI: Progress on the Covid-19 vaccine has brought travel-related stocks – be it hotels or airlines – alive again. While analysts see value in some pockets, it is not the time for investors to let FOMO (fear of missing out) take over.Shares of Indian Railway Catering and Tourism Corporation (IRCTC) have jumped more than 25 per cent over last one week, while those of SpiceJet have jumped nearly 31 per cent. InterGlobe Aviation has risen 22 per cent to scale a 52-week high of Rs 1,767 on Friday.“It has largely to do with the economy opening up, and it is expected that normalcy will resume as the vaccine seems closer than before,” said Deven Choksey, Group Managing Director, KR Choksey Investment Managers.“The fundamentals of these companies will take time to improve, and the market is possibly running ahead of expectations. One should prefer fundamentally strong companies where there is conviction in the business story. The FOMO factor cannot come into play here,” Choksey said.The government is expecting two Covid vaccines — Oxford-AstraZeneca’s Covishield and Bharat Biotech’s Covaxin – to be available by January and four more by the end of April, increasing the prospects of adequate supplies to immunise some 30 crore population by July.Meanwhile, Serum Institute of India, the world's largest vaccine maker by the number of doses produced, has sought government approval for emergency use of the coronavirus vaccine that it is developing with the University of Oxford and British drugmaker AstraZeneca.This pharma firm is the second to do so, after US firm Pfizer sought approval from the drug regulator – DCGI (Drugs Controller General of India) – for its Covid-19 vaccine, which has been cleared by the UK and Bahrain.Among the hospitality stocks , Indian Hotels has climbed more than 10 per cent in last one week, whole Lemon Tree Hotels has jumped 34 per cent. Chalet Hotels has added 33 per cent over last one week.Sanjiv Bhasin, Director of IIFL Securities, said the real advantage was if you picked it up when there was abysmal pressure on the stocks, but it would be difficult to justify the price point as there is a constant worry of a second wave and more.“However, if you have a longer-term view, there is so much of pentup demand and feeling of people for a vacation or going out, that it will be humungous,” said Bhasin.“It may take three to six months, but the Indian investor or the consumer is extremely resilient,” he said.Also, the traction in these stocks comes at a time when the equity indices are at all-time highs, and expensive valuations have prompted investors to go value hunting in beaten-down names.The travel-linked stocks were the worst hit after the government announced a lockdown late March, and the spread of the worsened, prompting people to drastically cut work and leisure-related travel. Most people are undertaking only essential travel.Rahul Shah, VP for Equity Advisory at Motilal Oswal Financial Services, said there is a lot of value in a few stocks in the hospitality pack.“Obviously the way the market has run up, these stocks have also run up, but the valuations are still justified and there could be some more momentum in these names. Travel has picked up, and hospitality is going to do well,” Shah told ETNow last week.“On top of the mind, Indian Hotels remains a clear winner and there is a lot of value in the stock at the current level. I would suggest going long on Indian Hotels for those who have a horizon for one year or so,” he said. | shares of Indian Railway Catering and Tourism Corporation (IRCTC) have jumped more than 25 per cent over last one week. those of SpiceJet have jumped nearly 31 per cent. interglobe aviation has risen 22 per cent to scale a 52-week high of Rs 1,767 on friday. government is expecting two Covid vaccines — Oxford-AstraZeneca’s Covishield and Bharat Biotech’s Covaxin — to be available by January | Positive |
https://www.businesstoday.in/latest/biz-eod/biz-eod-credit-facility-for-street-vendors-free-food-to-migrants-and-affordable-housing-for-urban-poor/story/403863.html | As the part of an economic package to mitigate the economic impact of the coronavirus crisis and the nationwide lockdown the government will provide special credit facility to support nearly 50 lakh street vendors, free food grain supply to 8 crore migrants for next 2 months and launch a scheme for affordable rental housing complexes (ARHC) for migrant workers and urban poor to provide ease of living at reasonable rent. Read for more top stories from the world of business and economy:
1. Rs 5,000 crore special credit facility to support 50 lakh street vendors: FM
The government will launch a special scheme within a month to facilitate easy access to credit to street vendors, says FM Sitharaman.
2. Free food grain supply to 8 crore migrants for next 2 months, says FM
About 8 crore migrants will be provided 5 kg of wheat or rice or 1 kg of chana for next 2 months, says FM Sitharaman.
3. Coronavirus crisis: What is 'One Nation, One Ration Card'?
By August 2020, 67 crore beneficiaries in 23 states, which is 83 per cent of all the PDS population, will get covered by this 'One Nation, One Ration Card', FM Sitharaman said.
4. Coronaviru crisis: Here's what FM Sitharaman said about urban poor
Nirmala Sitharaman press conference: The Finance Minister further added that 12,000 SHGs have produced 3 crore masks and 1.20 lakh litres of sanitisers amid the lockdown.
5. Govt to launch affordable rental housing for migrants and urban poor: FM
The scheme will be launched under the PMAY by converting government-funded housing in the cities into Affordable Rental Housing Complexes under PPP mode through concessionaire. | government to provide special credit facility to support nearly 50 lakh street vendors. free food grain supply to 8 crore migrants for next 2 months. 67 crore beneficiaries in 23 states will get covered by this 'one nation, one Ration Card', says finance minister. 12,000 SHGs have produced 3 crore masks and 1.20 lakh litres of sanitisers amid the lockdown. | Positive |
http://www.livemint.com/Money/svlMp5R05yFNlTIveV1DrO/Sensex-jumps-more-than-300-points-to-new-high-HDFC-hits-rec.html | Mumbai: The benchmark Sensex logged a record close on Monday, tracking strong gains in Asian markets at the start of the week, following all-time highs on Wall Street on Friday.
BSE’s 30-share Sensex closed 0.73% or 251.12 points to a record high of 34,843.51 points, while the National Stock Exchange’s 50-share Nifty climbed 0.56% or 60.30 points to a record close of 10,741.55 points.
However, the market closed off highs and the breadth turned neutral from positive in early trade.
Earlier in the day, Sensex had risen as much as 1.07% or 371.30 points to a record high of 34,963.69 points, while Nifty climbed as much as 0.95% or 101.40 points to a record of 10,782.65 points.
“Indicators have shown is that some kind of correction should be in the offing. This has been the case. However inflows from domestic investors are driving the market," said Dipen Sheth, head of institutional research at HDFC Securities.
Domestic institutional investors (DIIs) have been net buyers of Indian shares to the tune of Rs1,446.67 crore so far this year, after record net inflows of Rs91.354.20 crore in 2017.
“That said, while upcoming earnings recovery is discounted, it is not bubble territory as well," said Sheth, adding that stock-picking is key in the current market, where valuations look full for frontline indices.
“Also, while reforms are leading to teething problems right now, all these will bear fruit over the medium to long term. We should not mistake the weather from the climate," added Sheth.
Gainers beat losers in the ratio of 1.1:1 on the BSE at close, while they were more than double the number of losers in early trade.
Meanwhile, hopes that a recovery was in the offing for Asia’s third-largest economy also helped investor sentiment.
Data released after market hours on Friday showed that India’s factory output growth leapt to a 17-month high in November, partly due to the effect of a lower year-ago base in the aftermath of demonetisation, and retail inflation also quickened to a 17-month high, confirming that an economic recovery is underway amid rising price risks.
The BSE Finance and BSE Bankex indices gained the most, as they advanced 1.65% and 1.25%, respectively.
Financials contributed the most to the gains for Sensex.
Housing Development Finance Corp. Ltd contributed the most to the rise in Sensex, as it rose as much as 7.08% to a record high of Rs1,886, after the firm said it will raise around Rs11,104 crore from institutional investors such as KKR, GIC and Premji Invest. Separately, the country’s largest mortgage lender will also be raising up to Rs1,896 crore through qualified institutional placement.
Top private sector bank ICICI Bank Ltd rallied 3.73% to Rs329.45, after Morgan Stanley said the stock could offer more than 50% returns in 2018.
“The big story of 2018 is likely to be large Indian corporate lenders. Concerns around asset quality and weak profitability have dogged performance. However, this is set to turnaround meaningfully over next few months," Morgan Stanley said in a note on 12 January.
“These banks offer both re-rating and compounding - driving returns. We see >50% returns owning ICICI Bank here. While we are positive on Asian banks in 2018, no other large cap bank offers >50% upside after a strong 2017," Morgan Stanley added.
Shares of Infosys Ltd also rallied as much 1.3% to Rs1,092.05, their highest level since 11 August, 2016, as investors gave a thumbs up to its December quarter earnings. They erased most of the early gains and closed 0.19% higher at Rs1,080.40.
After market hours on Friday, the country’s second-largest software exporter posted a 38% sequential jump in third-quarter net profit at $796 million compared with $578 million in the September quarter.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | Sensex closed 0.73% or 251.12 points to a record high of 34,843.51 points. the national stock exchange’s 50-share Nifty climbed 0.56% or 60.30 points. Sensex had risen as much as 1.07% or 371.30 points to a record high of 34,963.69 points. | Positive |