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https://www.livemint.com/news/world/-great-polarization-may-be-next-for-world-s-richest-ubs-says-11602031975218.html | The huge boost to the fortunes of technology and health-care billionaires during the coronavirus pandemic may be the beginning of a more permanent trend.
The Covid-19 shock could act as a catalyst to spur increased opportunities for those who offer digital or other tech solutions, while the wealth of those in older industries may in turn suffer, UBS Group AG and PricewaterhouseCoopers said Wednesday in a report.
“Those that are the innovators and the disruptors, the architects of creative destruction in the economy, are still increasing their wealth," the 2020 Billionaires Insights report found. “The net wealth of billionaires in entertainment, financial services, materials and real estate sectors lagged the rest of the universe."
Despite the global economic shock, the world’s 500 richest people are a combined $813 billion richer now than they were at the beginning of the year, according to the Bloomberg Billionaires Index.
Total billionaire wealth surged to a fresh peak of $10.2 trillion in July, up from $8.9 trillion at the end of 2017, according to the report findings. The heavy lifting came from the tech and health-care sectors, where fortunes jumped by 43% and 50%, respectively. Net worth among those in entertainment, materials, real estate and even finance, by comparison, grew at 10% or less.
‘More Digital’
The post-Covid world will be “more indebted, more digital and less global," said Maximilian Kunkel, chief investment officer of UBS’s global family office unit. “All of those points should reinforce these trends over the past few months."
The growth in total wealth was accompanied by a rise in philanthropic efforts. The world’s richest donated $7.2 billion publicly from March to June, and potentially even more privately. The donors are increasingly focusing on tangible results such as lowering incidents of a particular disease, instead of just the amount of cash donated.
The results cover more than 2,000 billionaires in 43 markets, accounting for 98% of billionaire wealth, UBS and PwC said. The researchers also conducted about 60 interviews with the ultra-rich.
The surge in net worth among tech entrepreneurs this year -- Amazon.com Inc.’s Jeff Bezos and Tesla Inc.’s Elon Musk both added more than $60 billion to their net worth in 2020, according to the Bloomberg index --has led to increased scrutiny as millions in the U.S. lost their jobs amid a slumping economy. Meanwhile, a U.S. house panel has proposed a series of far-reaching antitrust reforms to curb the power of the technology giants after a 16-month antitrust investigation found the companies are abusing their dominance.
But these wealthy individuals may just be the ones that will help lead the recovery.
“As the storm passes, a new generation of entrepreneurs looks likely to digitize, refresh and revolutionize the economy," the report found.
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This story has been published from a wire agency feed without modifications to the text.
Topics | the world's 500 richest people are a combined $813 billion richer now than they were at the beginning of the year. total billionaire wealth surged to a fresh peak of $10.2 trillion in July, up from $8.9 trillion at the end of 2017. the growth in total wealth was accompanied by a rise in philanthropic efforts. | Positive |
https://www.moneycontrol.com/news/business/economy/how-govt-is-facilitating-stock-exchange-listing-of-msmes-5465991.html | The Micro, Small and Medium Enterprises (MSMEs) are often considered a harbinger of growth in an economy. World over, governments have recognised the role and importance of the sector that constitutes nearly 90 percent of the total enterprises in most of the economies and are credited for generating the highest rates of employment growth and account for a major share of industrial production and exports.
The biggest challenge being faced by these enterprises is access to capital.
To overcome this, most major capital markets have established a separate exchange for SME segment. The purpose of separate SME bourses is to create an SME friendly market architecture which with support of effective policies and institutions fosters a new class of investable equities.
In 2012, BSE and NSE launched BSE SME and NSE Emerge which allowed SMEs to list on the BSE and the NSE and later migrate to the main board of the bourses without the need to make an initial public offering.
The key difference between listing on the main board and these platforms is the strict eligibility criteria of the former. Additionally, the requirement of track record, cost, corporate governance norms, reporting requirements and time frame for listing is quite relaxed for SMEs compared to companies listed on the main board.
Since the launch over 320 companies have been listed on the platform that not only provides benefits to these companies but also benefits its investors by providing an exit route to private equity investors as well as liquidity to the ESOP holding employees.
It also helps in maintaining sustainability through good corporate governance, generate an independent valuation of the company and also build the company's profile with customers, suppliers, investors and media alike.
In May 2020, the BSE reduced the annual fee for listing on BSE SME by 25 percent to encourage small businesses to list and support them amid COVID-19 crisis.
The relaxation was preceded by centre's Rs 50,000 crore equity infusion plans for MSMEs through Fund of Funds to also encourage entities to list on the main board of stock exchanges.
"A fund of funds being created for infusing about Rs 50,000 cr as equity into MSMEs. This will benefit those MSMEs who have the potential and are viable. The corpus of the fund will be of Rs 10,000 crore," the finance minister had said.
Earlier this month, MSME Minister Nitin Gadkari said the government is looking at a specially created "MSME Stock Exchange", which will have such small businesses listed on it. The government will provide equity of 15 percent to those businesses which list on the platform.
Click here for our complete coverage of MSME day | a separate exchange for the micro, small and medium enterprises (MSMEs) is being established. the purpose of separate SME bourses is to create an SME friendly market architecture. the bourses are credited for generating the highest rates of employment growth. the bourses are also credited for a major share of industrial production and exports. | Positive |
https://www.moneycontrol.com/news/business/markets/banks-financials-pushing-the-market-higher-should-you-trust-the-rally-5352571.html | Equity benchmarks Sensex and Nifty closed with healthy gains on June 3, with the Sensex surging 284 points and Nifty settling above 10,000.
The rise in benchmarks was led by banking and financial heavyweights such as HDFC twins, ICICI Bank and Kotak Mahindra Bank.
Nifty Bank index jumped 2 percent, extending its winning streak into the seventh consecutive session.
The rally of the last week was also propelled by the banking and financial stocks and experts point out that whenever the banking conglomerates start participating in any rally, it is a robust one.
Why are banking stocks surging?
Experts point out that the banking stocks are rising as the perception about them has changed after the resumption of economic activities.
"Indian banking sector was the worst hit due to fall in outlook with a fear that asset quality will downgrade heavily given stringent lockdown. This view is changing due to the expectation of a re-opened economy, fall in the cost of funds, stable liquidity and big equity deals announced by banks with easy placement to foreign and domestic investors at fair valuations," said Vinod Nair, Head of Research, Geojit Financial Services.
Sameer Kalra, Founder, Target Investing, said: "There was an easy trade in the last couple of months to short these stocks that reversed due to massive short-covering in the last few days, trapping a lot of traders. Secondly, as the economy reopens there is a global flow change of selling defensive and buying cyclical.
Rusmik Oza, Executive Vice President & Head of Fundamental Research at Kotak Securities has a similar view.
"Since March, the price correction in BFSI stocks had been very steep and most of them were in a heavily oversold zone. Most retail banks were worst hit under the lockdown but now as the economy opens up in a phased manner they are regaining strength," Oza said.
"Last week we saw the Banking Index gain 10 percent in just last two last days of the monthly expiry indicating heavy short-covering. Indian markets are following the trends of developed markets and moving in tandem with them. Since BFSI is the largest sector by weight in Nfity50 and valuations on price/book Value have gone to abysmally low levels we are seeing some fresh buying in them," said Oza.
Moreover, banking and financial stocks are pinning hopes on RBI for the restructuring of loans, while their valuation had made them attractive for investors.
"Rally in banking and NBFC stocks are primarily led by valuation; few large banks and NBFC were almost trading at 1time FY22 adjusted book value. The ability to raise sufficient liquidity at low cost would be the key criteria for banks to navigate the current situation, as asset side inflow would be limited," said Jaikishan Parmar, Senior Equity Research Analyst, Angel Broking.
"The rally is led by large private banks that have a very strong liability franchise. These large banks have adequate provision coverage for a bad asset. Additionally, there is hope that RBI may allow a one-time restructuring of the corporate loan," Parmar said.
What lies ahead?
There is not much hope for the banking and financial stocks or for the market, for that matter, unless the COVID-19 comes under control and the economy opens completely.
Today is the seventy-first day of India’s nationwide lockdown, meant to curb the novel coronavirus pandemic. Confirmed COVID-19 cases in India stand at 2,07,615. The death toll from the outbreak in India is at 5,815. Maharashtra, Tamil Nadu, Delhi and Gujarat have reported the highest number of cases.
The Centre has extended the lockdown, called 'Unlock 1', till June 30. A number of activities will be allowed to resume in a phased manner over this month.
The rally in the market is propelled by hope. The market is expecting that things will come to normal gradually and has factored in weakness in the economy and earnings. However, this could be illusionary and there could be a wave of selling in the market if fresh negative reports regarding the coronavirus pandemic and the economy emerge.
"The market has been rallying on the optimism of easing lockdown. But we do not expect a V-shape recovery for the market. Banks are a proxy to overall economic consumption and we do not see a V-shape recovery in banks either. We should focus on banks with better value because fund-raising would be needed somewhere down the line given the overall anticipated economic space," said Pankaj Pandey, Head of Research, ICICI Securities.
"We expect a consolidation in the market going ahead. The market will be in the range of 10,500-9,000 in the next 3-4 months," said Pandey.
Oza of Kotak Securities feels that the frontline banks and NBFCs could face resistance after the recent sharp run-up as the sector is still prone to heavy earnings downgrades in the coming quarters.
Sameer Kalra of Target Investing believes banking and financial stocks are witnessing technical bounce and not a fundamental reversal as the real impact of COVID-19 will be seen in Q1FY21 results.
There is a diverging trend in India's economy and the stock market.
While the lockdown has been eased significantly and the market seems to be cheering it, there is a possibility of reintroducing restrictive measures or one-third to one-fourth of the population staying at home and not participating in the economic activities.
"Certain sectors and segments like cinemas, airlines, consumer durables, etc would continue to be impacted till successful vaccines are found and a majority of people are vaccinated. Therefore, in our view, significant contraction in the Indian economy in FY2021 is inevitable," said G Chokkalingam, Founder and CIO, Equinomics Research & Advisory.
Experts warn that the market cannot ignore deteriorating macroeconomic indicators for a long time and ultimately it has to behave in sync with earnings expectations and trajectory of economic growth of the country.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | equity benchmarks Sensex and Nifty closed with healthy gains on June 3. the rise in benchmarks was led by banking and financial heavyweights such as ICICI Bank. experts point out that the banking stocks are rising as the perception about them has changed. the banking sector was the worst hit due to fall in outlook with a fear that asset quality will downgrade heavily. | Positive |
https://www.financialexpress.com/budget/budget-2019-rs-70k-crore-capital-infusion-psbs-credit-positive-boost-economy-says-sp-global-ratings/1636287/ | Union Budget 2019: The proposed Rs 70,000-crore capital infusion into public sector banks (PSBs) will provide a timely booster to these lenders, S&P Global Ratings has said. The move, announced in the Budget, is likely to be credit positive for the banking sector and the economy, S&P said in a note titled ‘India’s Budget attempts to address trust deficit in the financial sector.
“We believe the capital infusion will help PSBs make necessary haircuts on their weak corporate loans and shore up their capital adequacy,” said S&P Global rating credit analyst Geeta Chugh.
The capital infusion will help some banks to come out of the central bank’s prompt corrective action and resume lending and clean up their balance sheets, she added. S&P said it believe PSBs still require substantial reforms to improve risk management, service quality, efficiency, and diversity of product offerings.
“While the government has infused large amounts of capital into PSBs in the past few years, the progress on reforms has been rather lackluster,” S&P said. The US-based rating agency said the government has also signalled liquidity support for the financially sound non-bank finance companies (NBFCs).
PSBs’ purchase of high-rated pooled assets of Rs 1 lakh crore will now be eligible for a one-time six months’ partial credit guarantee by the government for a first loss of up to 10 per cent. “We believe this will shore up demand for these assets. The Reserve Bank of India (RBI) will also facilitate these transactions by providing banks a liquidity backstop against their excess holdings of government securities,” S&P said.
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The growth and profitability of NBFCs in India has been under pressure since the past nine months as the cycle of easy liquidity and low cost of funds reversed. “The budget proposals may help NBFCs to sell their highly-rated retail pool of assets and address their immediate liquidity needs and correct asset-liability mismatches. However, the asset-quality stress emanating from their wholesale real estate related portfolio will not be alleviated,” it added.
The budget also proposes to transfer regulation of housing finance companies (HFCs) to the RBI from the National Housing Bank (NHB).
Besides being the regulator of HFCs, the NHB was also the refinancer and lender for these companies, which led to a conflicting mandate.
“This proposal will alleviate this conflicting mandate and make RBI the sole regulator for key financial sector entities,” S&P said.
The government also announced the amendment to the Reserve Bank of India Act to strengthen the powers of the central bank over non-government-owned NBFCs and allow for effective resolution of stressed financial institutions. These powers include supersession of boards under certain conditions; removal of directors on the board; and wide ranging resolution powers including amalgamation with any other non-banking institution, reconstruction of the NBFC, splitting NBFCs into different units or institutions, and vesting viable and non-viable businesses in separate units or institutions.
“The wider mandate and broader powers could lead to RBI evaluating asset quality review (AQR) and higher provisions for finance companies, similar to what was done in the banking sector. Such a move would help address the trust deficit that the sector has been struggling with in the past few months,” S&P said. | the move is likely to be credit positive for the banking sector and the economy. the capital infusion will help some banks to come out of the central bank's prompt corrective action and resume lending. the progress on reforms has been 'rather lackluster', says S&P. the government has also signalled liquidity support for the financially sound non-bank finance companies (NBFCs) | Positive |
https://www.financialexpress.com/brandwagon/lt-foods-owner-of-daawat-basmati-to-spent-rs-45-crore-in-operation-and-marketing/1838901/ | Daawat Basmati Rice’s parent company LT Foods which has entered into the premium healthy segment with the launch of rice-based snack Kari Kari plans to invest Rs 45 crore over the next few years to expand business besides marketing. “This year we will spend anywhere between Rs 3 crore – Rs 4 crore in marketing which will primarily be about creating better samples to catch consumer’s attention. The aim is to drive sampling of the product at retail stores, airlines, multiplexes, corporates, and colleges, among others,” Ritesh Arora, head- India, Far East and new business, LT Foods, said. Currently, the company claims to be using online including social media platforms in addition to e-commerce sites, to spread awareness of the brand.
LT Foods Ltd has rolled out the snack in a joint venture with Japanese rice crackers company Kameda Seika. Overall, the company plans to invest Rs 70 crore, in the JV and of this Rs 25 crore has been utilised for setting up manufacturing facilities in Sonipat, Haryana. “Based on changing consumer needs and preferences, and the increase in demand for healthy snacks, we ventured into the premium snacks category in India. Thanks to millennials’ need to try new products, this premium snacks category is recording a growth rate of 20%-25% per annum,” Vijay Kumar Arora, chairman and MD, LT Foods Ltd, said.
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According to Ritesh Arora, the company will use TV to advertise and create a buzz about the product at a later stage. Calling it the second phase of marketing he stated that the firm intends to invest Rs 15 – Rs 20 crore in TV advertising. “From the third year of operations, we plan to go on TV via ads because by then we would have established awareness and our marketing will be more about reach. As our target group (TG) is a health-conscious millennial who is receptive to new products, we will primarily release ads on English channels,” he noted.
As per industry estimates, the Indian snacks industry is valued at Rs 30,000 crores, of this premium and healthy snacks market is estimated to be worth at Rs 1,000 crore, growing at a rate of 22%-25% annually. The company aims to grab 3%-5% share of the premium healthy snack market in the next three years.
Daawat-Kameda India aims to clock revenue worth Rs 10 crore from the sale of Kari Kari snack by the end of FY21. The company is looking to generate revenue worth Rs 130 crore in five years, on the back of a profit margin of 35%. Moreover, Kari Kari snacks will be exported to the Middle East, Bangladesh, Nepal and Sri Lanka. These markets are expected to contribute 15% of the overall sales of the company. Available in four different flavours, Chilli Garlic, Wasabi, Salt and Pepper and Spice Mania, Kari Kari is priced at Rs 50 for 60 grams and Rs 99 for 135 grams pack. The company plans to have a presence at 20,000 retail outlets and 35,000 outlets by 2024.
As for the parent firm, LT Foods, it expects to clock Rs 4,100 crore in revenue by the end of FY20.
Read Also: Google.org donates $1 million to Internews to fight fake news in India | LT Foods has entered into the premium healthy segment with the launch of the snack. the company plans to invest Rs 45 crore over the next few years to expand business. the company plans to spend between Rs 3 crore – Rs 4 crore in marketing. the aim is to drive sampling of the product at retail stores, airlines, multiplexes, corporates, and colleges, among others. | Positive |
https://economictimes.indiatimes.com/markets/commodities/gold-may-try-to-scale-rs-32000-mark/articleshow/67483363.cms | NEW DELHI: Crude oil cooled off slightly in global markets on Friday, weighed down by weak global growth outlook However, the commodity is set to mark a weekly gain, backed by lower supply on output cuts. Gold prices climbed globally as the dollar fell on expectations that the US central bank may pause interest rates hikes if the US economy slows this year, Reuters reported.Gold, silver and crude oil went up in the domestic futures market.MCX Gold traded at Rs 31,965 per 10 grams, up Rs 85, while silver rose Rs 169 to Rs 39,454 a kg around 10:35 am. Crude oil prices stood at Rs 3,702 per barrel, up Rs 24.We bring you projections on commodity trade by various brokerages.Here's outlook on agri-commodity by Geojit Financial Services.Jeera March NCDEX: Though short covering rallies continued yesterday’s session as well, it showed the inability to move above the trend line resistance placed at Rs 17,180. Major trend continues to be negative in the near run. For the day, prices are likely to test further lows of Rs 16,750-16,500 or even lower to Rs 16,200 levels.Soybean February NCDEX: The Doji pattern on the daily chart signals a nearby reversal. Hence, a slip below Rs 3,570 could trigger profit booking initially towards Rs 3,570-3,510 levels. On the other side, it is required to break the resistance at Rs 3,653 for the bulls to get active towards Rs 3,725 levels.Cardamom February MCX: If prices sustain above Rs 1,560, it could continue upside moves targeting Rs 1,610-1,635 levels.Turmeric March NCDEX: A choppy to a negative trading session is expected for the commodity today.Dhaniya March NCDEX: As long as prices struggle to move above Rs 6,955, it is expected to see a downside correction to Rs 6,600-6,530 levels.Guarseed10 February NCDEX: Current weakness is likely to stretch to Rs 4,150-4,125-4,080 levels.Guargum5 February NCDEX: Prices broke the immediate trend line resistance placed at Rs 8,400. If it sustains below the same, it could expect a sharp selloff to Rs 8,100-8,000 levels.Chana March NCDEX: Sentiment remains weak. So, expect a lower correction to Rs 4,290-4,260 levels.Refined Soy oil February NCDEX: If prices stay above Rs 745, expect a short covering rally towards Rs 748-752 levels.CPO January MCX: As prices stay above the trend line support at Rs 535, it could see more upside moves pointing to Rs 544-546 levels.Below is a head-up on outlook by SMC Global.Bullion: The bullion counter may trade with an upside bias. Gold can find support near Rs 31,800 on MCX and can recover towards Rs 32,000. Silver can find support near Rs 39,300 and recover towards Rs 39,600.Base metals: Base metal prices may witness some lower level buying. Copper may recover towards Rs 422 while taking support near Rs 410 on MCX. Zinc can move sideways as it can face resistance near Rs 176 while it has support near Rs 172. Lead can take support near Rs 137 and can face headwinds near Rs 140. Nickel can witness further recovery and can test Rs 800. Aluminium can face resistance near Rs 132 and can find comfort near Rs 129.Energy: Crude oil may witness profit booking at higher levels. It can face resistance near Rs 3,750 while it has support near Rs 3,600. Natural gas may trade sideways as it can move in the range of Rs 205-214 on MCX. | gold, silver and crude oil went up in the domestic futures market. gold traded at Rs 31,965 per 10 grams, up Rs 85, while silver rose Rs 169 to Rs 39,454 a kg around 10:35 am. crude oil stood at Rs 3,702 per barrel, up Rs 24. jeera March NCDEX: though short covering rallies continued yesterday, it showed the inability to move above the trend line resistance placed at Rs 17,180. | Positive |
https://www.financialexpress.com/infrastructure/railways/indian-railways-bullet-train-project-boost-for-atmanirbhar-bharat-indian-companies-to-lay-high-speed-tracks/2009806/ | Bullet Train in India: Now, Indian companies will do a number of high-value, technical works for the upcoming Ahmedabad-Mumbai bullet train project, according to an IE report. These high-value, technical works were earlier slated to be done by Japanese firms. The move is expected to give a major boost to Indian engineering capability. According to the report, to explore if the highly technical work of laying the rail track of the bullet train corridor can be done by an indigenous engineering company, India is in discussions with Japan. On the 508-km stretch of the Ahmedabad-Mumbai corridor, 27 steel bridges will be made by Indian companies, which was earlier thought to be the sole domain expertise of Japanese firms.
The National High Speed Rail Corporation Limited (NHSRCL), keeping in view that no Indian company has worked on laying Shinkansen track that is capable of carrying trains at a speed of 320 km per hour, has reached out to Indian industry to assess the requirement as well as capability of domestic players to get this job done. Last Wednesday, a webinar was hosted to sensitize Indian firms and consultants about the job. Sources quoted in the report said that training for upskilling Indian players is being planned as well. According to officials, for domestic engineers, Indian companies laying the track would be a major capability upgrade and also this will go a long way towards “Atmanirbhar Bharat” in the engineering space.
According to the report, the Indian side has convinced the Japanese side that engineers of India are more than capable of making complex steel bridges. According to the sources quoted, the work for 65,000-ton steel fabrication for the 27 bridges in the high-speed rail corridor will be certified by Tiruchirapalli’s Welding Research Institute. Also, the cost of the work is likely to be “slightly cheaper” with Indian firms than with Japanese companies. However, rolling stock, signalling and control systems would be from Japan.
According to sources quoted in the report, a tender for the undersea tunnel which is a part of the 21-km underground stretch in the state of Maharashtra — India has held its ground that the cost escalation after accounting for inflation would not be acceptable beyond a level. India had discussed that the work cost should be based on estimates of the year 2015 and the calculated inflation, and not more than that. The 21-km long underground stretch from Bandra Kurla Complex to Kalyan has 7 km section under the Thane creek, with 1.8 km section under the sea bed, while the remaining stretch under mangrove marshland on either side of the creek in Mumbai. The tender for the tunnel project is expected to be opened next month, the report added. | IE report says 27 steel bridges will be made by Indian companies. cost of the work is likely to be "slightly cheaper" with Indian firms than with Japanese companies. laying the track would be a major capability upgrade for domestic engineers. the project is part of the 508-km stretch of the Ahmedabad-Mumbai corridor. the project is expected to be completed by the end of the year. | Positive |
https://www.financialexpress.com/market/manager-who-dodged-global-crisis-sees-20-year-bull-run-in-india/1447652/ | In his two-decade career as an asset manager, Pankaj Murarka hasn’t shied from calling time on Indian stocks.
At the first signs of the financial crisis, he took cover when many others thought the country’s shares would be immune to any global turmoil. So when the benchmark stock gauge shed more than half its value in 2008, Murarka, by his own account, was one of the few investors who preserved his clients’ capital.
“The theory prevalent then was India was decoupled” from the global economy, Murarka, the founder and chief investment officer of Renaissance Investment Managers Pvt., said in an interview in Mumbai. “But we could understand that the coming tsunami was so big that it was all hogwash.”
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While Murarka’s current fund is small, he has a long history in money management, beginning his career in 1998, a few years after the Indian asset management industry took shape. During his stint at Axis Asset Management Co., his Long-Term Equity Fund returned 20 percent annually during the six years through 2015, compared with a 9.2 percent gain in the benchmark S&P BSE 200 Index.
Great Opportunity
Today, the veteran manager has dispensed with caution, even as the nation’s banks grapple with bad loans and investors get jittery about Prime Minister Narendra Modi’s election prospects. Where others see reason for concern in Indian equities’ recent outperformance against emerging-market peers, fearing a reversion to the mean, Murarka says they’re poised for a “once-in-a-century” bull run that will last for 20 years. It will be backed by an economy in transition into a global power, he says, which will eventually become the third in the world to join the $10 trillion club.
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The S&P BSE Sensex was one of the world’s few benchmark equity gauges to rise last year, delivering an almost 6 percent gain for its third straight yearly advance, even as an index of emerging-market equities plunged almost 17 percent. In fact, the measure of Indian equities has almost quadrupled since the financial crisis. Still, Murarka thinks the best is yet to come.
“You won’t get this opportunity again,” Murarka, 43, said. “It’s a once-in-a-lifetime opportunity as the country is likely to go through its best growth cycle.”
In the last 25 years, India has expanded ninefold to become a $2.6 trillion economy, despite the Asian financial crisis of 1997, the bursting of the dotcom bubble at the turn of the millennium and then the global financial crisis. Murarka says Indian equity investors will face short-term corrections over the next 20 years, but they will just be chances to buy. He cites trade tensions and central banks across the world looking to trim their balance sheets as potential risks.
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“Crisis is the order of the day and we will get one every three four years and it is an opportunity,” Murarka said. “India will keep growing despite that, that’s my view.”
Murarka is avoiding businesses linked to consumption, because he says their shares have gotten far ahead of earnings. Instead, he’s been buying stocks such as banks and engineering and construction firms that aren’t heavily indebted, which he says will benefit from economic growth and spending by both the government and the private sector.
‘Two-Speed Economy’
“India has had a two-speed economy in the last five years, a parallel bull and bear market, where it experienced an industrial recession, but at the same time consumers did well,” Murarka said. Companies linked to the consumer side of the economy such as those producing durables and staples have done well, but that bull market has peaked, he said.
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Murarka was among the founding team at Axis, which he joined in 2009 and helped build into a 450 billion rupees ($6.3 billion) firm by the time he left in 2016 as head of equities.
Before that, he worked as a portfolio manager at Merrill Lynch for about four years, including during the global financial crisis. He started to move his Indian hedge fund, which managed about $300 million at the time, away from property and infrastructure stocks in 2007, and began shorting property stocks in February 2008. His fund underperformed the benchmark index by about eight to 10 percentage points in 2007, but the following year, when most India hedge funds got wiped out, he protected his clients’ money, he said.
New Venture
Murarka founded Renaissance in December 2016. The investment house oversees almost $25 million of assets. He tends to pick companies with a dominant market share that are likely to take a “disproportionate share of the profit pool.” His mid-cap fund dropped 9 percent in 2018, compared with a 15 percent fall in the Nifty Midcap 100 Index, while his multi-cap fund slid 4 percent versus a 1 percent decline in the NSE Nifty 200 Index, according to Murarka.
Only a reversal in India’s economic policy would give him sleepless nights, he says, and that’s unlikely to happen. He thinks India can gain from the U.S.-China trade war by serving as a substitute destination for global supply chains dominated by China.
“Take a 20-year view on India,” Murarka said, citing parallels with Japan and China. “Each nation gets this period once in a century.” | pankaj murarka has been an asset manager for two decades. he took cover when many thought the country's shares would be immune to global turmoil. he says the country is poised for a 'once-in-a-century' bull run. he says the country will become the third in the world to join $10 trillion club. | Positive |
https://www.moneycontrol.com/news/trends/current-affairs-trends/govt-stance-on-wealth-creators-will-boost-biz-confidence-entrepreneurship-sunil-mittal-4893081.html | Finance Minister's assertion that wealth creators will be respected offers a massive boost to business confidence and entrepreneurship in the country, Chairman of Bharti Enterprises Sunil Mittal said on Saturday. Mittal further said the Budget underlined Government's intent towards building a strong foundation for achieving the goal of making India a five trillion dollar economy.
"But the biggest takeaway for me was the call out from the Finance Minister that ‘wealth creators will be respected'. This will be a massive boost to business confidence and entrepreneurship and a sign that we are serious about building a new India, where corporate India and new age entrepreneurs will be stakeholders in growth," Mittal said.
He noted that digital technologies are set to become the primary platform for economic activity and growth.
"The Finance Minister has rightfully made the emerging global technology trends along with inclusive growth as the backdrop for the Budget," he said.
Focus on 'soft infrastructure' elements such as Education and skilling of youth, healthcare and sanitation, and welfare of women, will ensure that Indians, specifically youth, gets access to the fruits of economic growth. | finance minister's assertion that wealth creators will be respected offers a massive boost to business confidence and entrepreneurship in the country. digital technologies are set to become the primary platform for economic activity and growth. mittal said the Budget underlined Government's intent towards building a strong foundation for achieving the goal of making India a five trillion dollar economy. he noted that digital technologies are set to become the primary platform for economic activity and growth. | Positive |
https://economictimes.indiatimes.com/industry/services/retail/despite-coronavirus-indian-traders-stock-up-in-hopes-of-festive-cheer/articleshow/78802337.cms | JAIPUR/NEW DELHI: Indian businesses are stocking up more ahead of this year's big festival season than at any time in the last five years, expecting people whose earnings were relatively unaffected by the pandemic to spend the money they saved during months of lockdowns.India's biggest shopping season is at the time of the festivals of Durga Puja and Diwali , which fall 20 days apart in October-November each year. Traditionally, this is a time when houses are re-decorated, big-ticket items purchased, feasts held and gifts exchanged.Businesses and shopkeepers expect more purchases than usual this year, beginning with Durga Puja on Thursday, because the months of lockdowns have resulted in pent-up demand.Recent data shows that demand for diesel, power and cars has already picked up, and any resurgence of retail buying of everything from phones to furniture would bode well for India's economy that shrank 23.9% in the quarter ended June - its steepest decline.Brokerage firm Nomura said its India business-resumption index for the week that ended on Oct. 18 hit its highest level since the country first imposed a lockdown in late March to contain the coronavirus.Big retailers such as Croma and Vijay Sales , both dealing mainly in electronics and home appliances, told Reuters sales in recent days indicated that this holiday season could be better than last year and that they were actually worried about tightening inventory in certain categories like entry-level laptops and high-end televisions.The Confederation of All India Traders (CAIT) said its 70 million small businesses on average were planning for a buffer stock of around 14% this season compared with last year's 10%, to ensure they don't run out of goods should demand surge."In the last two months, despite facing a financial crunch, we have been procuring goods in anticipation that in the festive season we will have considerable footfalls," said Praveen Khandelwal, the group's secretary general, seated in his home-fittings shop in Delhi's Karol Bagh area."Our expectation is that this will be the best Diwali for us in at least five years. Naturally, our stocks levels will be as high too."Customer arrivals this month have already been the highest in about seven months, hovering around 10 per shop on average - still only about a third of the normal level but expected to rise, Khandelwal said.But not everyone is as enthusiastic. Shops and factories in the city of Jaipur, typically bustling with local and foreign tourists, did little business on a warm afternoon this week.Traders there said they had laid off staff as the city's key income source of tourism was still feeble and it did not have as many salaried people as places like Delhi."Until a vaccine is out, I think we will keep operating at 30-35% of pre-COVID levels," said Suresh Tak, owner of four clothes shops and factories printing designs on fabrics.Even Google 's mobility data from last week for West Bengal, India's fourth-most populous state where Durga Puja is the main festival, showed that people were mainly visiting supermarkets and pharmacies, not retail and recreation facilities.Thousands of miles away in the rural district of Satara in India's west, Nilesh Kadam says he is trying to save as much as he can, having returned to work only recently."From June to August the company had given me a break as there wasn’t much work at the factory," said the 35-year old, whose company makes steel products. "This year I am not planning to make any big-ticket purchase."Still, CAIT estimates Indians have amassed about 1.5 trillion rupees ($20 billion) in savings since April, a chunk of which could now be directed to holiday shopping.Online retailers Amazon and Walmart Inc's local unit Flipkart have also kicked off their annual sales events with heavy discounts. Flipkart said on Wednesday sales have tripled for more than 35% of its sellers this year and that there were "green shoots of recovery for everyone across the value chain".Hindustan Unilever Ltd, the Indian arm of Unilever , on Tuesday reported higher sales and profits for the September quarter and said its rural markets had been more "resilient" than the big cities."We believe the worst is behind us and we are cautiously optimistic on demand recovery," Chairman Sanjiv Mehta said on an earnings call. | india's biggest shopping season is at the time of the festivals of Durga Puja and Diwali. businesses expect more purchases than usual this year, beginning with Durga Puja on Thursday. demand for diesel, power and cars has already picked up. a resurgence of retail buying of everything from phones to furniture would bode well for india's economy. | Positive |
https://economictimes.indiatimes.com/markets/stocks/earnings/icici-bank-q4-results-preview-profit-to-soar-four-fold-on-low-base-all-eyes-on-covid-19-provisioning/articleshow/75626475.cms | Others
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Adani Gas Q4 results: Net profit jumps 60% to Rs 121 crore
SBI Card Q4 results: Profit falls 66% YoY to Rs 84 crore; firm creates Rs 489 crore Covid-specific provision
Shree Cement Q4 results: Profit surges 83% YoY to Rs 588 crore, beats Street estimates
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The government is likely to ask the next Finance Commission to consider a higher weight for the human development index (HDI) and sustainable development goals (SDGs) while recommending the distribution of resources among states.
US electric carmaker Tesla is willing to invest up to $2 billion for setting up a local factory if the government approves a concessional duty of 15% on imported vehicles during its first two years of operations in India.
As more women take up senior leadership roles in India Inc, their visibility in boardroom battles is also rising. In a clear break from the past, women are playing key roles in several ongoing boardroom conflicts, or family disputes that may extend into the boardroom, reflecting the rise in the number of women in positions where they can have their say.
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Top Trending Stocks: SBI Share Price | as more women take up senior leadership roles in India Inc, their visibility in boardroom battles is also rising. women are playing key roles in several ongoing boardroom conflicts, or family disputes that may extend into the boardroom. download the economic times news app to get daily market updates & live business news. adani gas's net profit rose 60% to Rs 121 crore. | Positive |
https://www.livemint.com/Politics/iC1wSeyEqMAuknwrr4jdlK/Biofuel-policy-for-aviation-sector-soon-says-Nitin-Gadkari.html | New Delhi: India will soon frame a policy supporting the use of biofuels from non-edible oils for powering jet engines, road transport and highways minister Nitin Gadkari said in New Delhi on Monday.
The petroleum ministry will move a proposal and the civil aviation ministry will set the standards for biofuel to be used as jet fuel, the minister said. The move is part of the Modi administration’s efforts to cut down on carbon emissions and lower oil imports, Gadkari said in the presence of petroleum minister Dharmendra Pradhan, civil aviation minister Suresh Prabhu and science and technology minister Harsh Vardhan at an event where budget airline SpiceJet announced a successful demonstration of its bio-fuel powered jet flight from Dehradun to New Delhi.
The fuel was developed by the Indian Institute of Petroleum (IIP) in Dehradun.
Fuel standard non-edible oils have to be produced on a commercial scale for the idea to fructify and this will depend on the demand from the aviation industry.
SpiceJet chairman and managing director Ajay Singh said biofuel has the potential to reduce the cost of airline operations by 15-20%. “This can dramatically alter the aviation sector in India. Biofuel is incredibly clean and, once commercialised, it can improve the livelihood of farmers," said Singh.
SpiceJet is the only airline in India to explore aerial operations powered by biojet fuel and intends to undertake operations using a blend of 75% of aviation turbine fuel and 25% of biojet fuel, which has the potential of reducing carbon footprint by 15%, the company said. The fuel is made from Jatropha crop.
“This fuel is low cost and helps in significantly reducing carbon emissions. It has the potential to reduce our dependence on traditional aviation fuel by up to 50% on every flight and bring down fares," it said quoting Singh.
The technology for making biofuel from non-edible oilseeds is available and the proposed policy will help commercialise the technology, Gadkari said. “We also have to decide on the tax rates and the incentives to be given," said the minister. “It is the start of a new era," he said, referring to the test flight using biofuel.
Environment protection was central to the government’s policy making, Prabhu said. Policy makers are working on a civil aviation action plan 2035 that will make the sector fully environment friendly, he said.
India has committed to reducing emissions intensity of its gross domestic product by a third by 2030 from 2005 levels. As part of an overall strategy to reduce emissions, India is expanding its renewable energy capacity, promoting alternative fuels such as methanol and biofuels and is encouraging the use of less polluting natural gas in the economy. It has also imposed a cess on coal, an affordable, but polluting fuel.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | petroleum ministry will move proposal and civil aviation ministry will set standards. move is part of the modi administration’s efforts to cut down on carbon emissions. fuel was developed by the Indian Institute of Petroleum (IIP) in dehradun. budget airline SpiceJet announced a successful demonstration of its bio-fuel powered jet flight from Dehradun to new Delhi. | Positive |
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Indian equities appear to be losing their edge over global peers for the first time since October, with Mumbai’s rivals catching up on generating dollar returns. To be sure, the Nifty remains among the best performing indices of the 21 most tracked globally: Since the beginning of October, it has posted 12 per cent gains in dollar terms. But in the year to date, the Nifty is down 2.6 per cent. In rupee terms, the index is flat since January.Other emerging markets such as Russia, China, and Brazil are up in the range of 13 per cent to 18 per cent in dollar terms. Developed markets, including the US, the UK, Germany, France and Japan, are up 6 per cent to 11 per cent.In the New Year, HDFC Bank and HDFC have weighed on dollar returns, as these two heavyweights are down 8 per cent and 4 per cent, respectively. Between them, these blue-chip financiers make up 18.3 per cent of the Nifty. Also, 10 out of 15 FII-heavy Indian stocks are in the red since January. Other heavyweights that have dragged Nifty down include L&T, Maruti Suzuki , and IndusInd bank Among the gainers in the period are Reliance Industries, Axis Bank , and Infosys : They advanced 8.4 per cent, 8.3 per cent and 7.6 per cent, respectively, in dollar terms since the beginning of the year. | since the beginning of October, the Nifty has posted 12 per cent gains in dollar terms. but in the year to date, the index is down 2.6%. emerging markets such as Russia, China, and Brazil are up in the range of 13 per cent to 18 per cent in dollar terms. Developed markets, including the us, the UK, Germany, France and Japan, are up 6 per cent to 11 per cent. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/superb-outlook-but-lazy-stocks-auto-sector-presents-mega-puzzle/articleshow/65603233.cms | In times of market high, the auto sector is presenting the ultimate puzzle: projections are superb, but stocks are not going into fast lane.Indian auto sector was on a roll for the past two years, but is going through a rough patch since May, as reflected by the relative underperformance of BSE Auto index in comparison with Sensex.The BSE Auto Index is up just 0.50 per cent since mid-May, whereas the 30-share Sensex has risen 10 per cent. Both the indices had rallied 50 per cent between February 24, 2016 and May 18, 2018.Analysts say a likely demand pickup in the rural belt and increase in government spending ahead of elections will boost the sector in the near term.Subdued performance of Tata Motors (down 16 per cent), followed by Hero MotoCorp (down 10 per cent), Ashok Leyland (down 13 per cent) and Apollo Tyres (down 8.74 per cent) mainly impacted the performance of the auto index.Overall, the industry remains on a strong footing, and July was another strong month when the industry recorded robust volume growth across segments, barring the passenger vehicles segment.While demand remains relatively broadbased across markets, rural India appears to be doing particularly well, as reflected in robust growth in the two-wheeler and tractor volumes. All major original equipment makers reported strong double-digit volume growth in July, except Maruti Suzuki.Maruti continues to maintain its forecast for double-digit sales growth in 2018-19 despite a marginal drop in July, banking on good monsoon and an uptick in the rural demand.The country’s largest carmaker reported a marginal drop in July sales at 1,64,369 units against 1,65,346 units sold in the same month last year.Global brokerage Goldman Sachs has a ‘buy’ rating on Maruti, with a target price of Rs 11,041.“India’s rural economy is witnessing a positive transformation led by higher government spending, greater farm financing, farm loan waiver, MSP hike and normal monsoon,” brokerage IIFL said in a report.The effects are visible on strong tractor volume growth in FY17 (16 per cent) and FY18 (21 per cent) and a pick-up in domestic two-wheeler sales in FY17 (7 per cent) and FY18 (15 per cent) after low single-digit growth in FY16.“We expect rural buoyancy to continue due to election-led demand stimulation, government schemes and MSP hike,” IIFL said.Market watchers say scooters are seeing growing interest in rural areas. Bus demand was mixed in the recently-concluded school bus season (April-June) with wide regional variations. Small trucks are seeing good demand due to pickup in construction activities and implementation of the overloading ban though the recent axle load hike had no impact.IIFL prefers companies with focus on rural themes such as Swaraj Engines, SML Isuzu, Hero MotoCorp and VST Tillers.In the auto ancillary space, there is value in Motherson Sumi and Bharat Forge, says Sudip Bandyopadhyay, Founder, Inditrade Capital.“We should look at larger companies in the auto ancillary space, both Motherson Sumi as well as Bharat Forge, look good to me. In spite of a little bit of a slowdown in the overall European markets, Motherson has performed commendably and the kind of management commentary we heard post earnings was very heartening. As for Bharat Forge, the performance has been good. Demand pickup in the US for heavy-duty trucks augurs well. Also, the domestic infrastructure business and domestic defence business are looking up. So we have buy recommendations in both the stocks at the current levels,” he told ETNow earlier this month.Motherson Sumi has already doubled investor money since February 2016. Maruti Suzuki, MRF, TVS Motor and Exide Industries have surged over 100 per cent in the same period.Bandyopadhyay also likes Exide Industries in the batteries segment.Companies in the BSE Auto index (ex Tata Motors) posted 13 per cent and 37 per cent YoY rise in net sales and net profit during June quarter. Tata Motors registered a consolidated net loss of Rs 1,862.57 crore in Q1 of FY19 against a net profit of Rs 3,199.93 crore reported for the same period in 2017-18.There are expectations that margins of tyre companies would fall 1.5-2 per cent between the second and third quarters of FY19 on a rise in imports due to lack of natural rubber supply following Kerala floods, according to a report.“Floods in Kerala will disrupt domestic supply and, hence, tyre companies will resort to higher imports to meet the rising tyre demand,” India Ratings said in its report.Brokerage Sharekhan said after a solid start in Q1FY2019, the auto sector is likely to maintain the trend of double-digit volume growth going ahead. “Automotive companies across OEMs, ancillaries and tyre companies have reported strong growth in Q1FY2019, laying the foundation of double-digit growth for FY2019,” it said.The brokerage said most auto companies are likely to mitigate cost pressures (higher raw material and marketing costs) given the benefits of operating leverage and regular price hikes because of strong volume offtake.“We expect the auto sector’s earnings to grow at a healthy pace this financial year,” Sharekhan said, adding that it likes Maruti Suzuki (on account of strong demand for its recent launches and likely market share gains going ahead), M&M (to benefit from strong demand in both the automotive and tractor segments) and Escorts (one of the few stocks to play the rural upturn) | auto sector is going through a rough patch since mid-may. both the indices had rallied 50 per cent between February 24, 2016 and may 18, 2018. a likely demand pickup in the rural belt and increase in government spending ahead of elections will boost the sector in the near term. rural India appears to be doing particularly well, as reflected in robust growth in the two-wheeler and tractor volumes. | Positive |
https://www.moneycontrol.com/news/business/markets/robust-listing-ujjivan-small-finance-bank-debuts-with-56-premium-at-rs-58-4717411.html | live bse live
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Ujjivan Small Finance Bank, the subsidiary of microfinance lender Ujjivan Financial Services started its first trade at Rs 58 on the Bombay Stock Exchange on December 12.
The stock listed with a premium of 56.75 percent over the issue price of Rs 37 per share.
The premium was warranted considering the tremendous response to the Rs 750-crore public issue and improvement in earnings along with asset quality in April-September 2019 against previous years, experts feel.
"Premium listing was justified as the issue was well priced with attractive valuation when compared to other listed small bank peers which are trading higher price-to-book value, leaving something on table to the IPO investors. Better asset quality and experienced management with pan-India presence provided comforts to investors at the time of subscription," Prashanth Tapse, AVP Research at Mehta Equities told Moneycontrol.
At the time of publishing this copy, the stock was trading at Rs 62.45, up 68.78 percent on the BSE while it was up 68.51 percent at Rs 62.35 on the National Stock Exchange.
In terms of volumes, Ujjivan traded with 2,40,85,448 shares on the NSE.
At current price, its market capitalisation stood at Rs 10,758.19 crore, which is far higher than its parent company Ujjivan Financial Services' Rs 4,151.67 crore.
The public issue saw hefty subscription of nearly 166 times during December 2-4. The company would use its fresh issue proceeds towards increasing its Tier – 1 capital base to meet the future capital requirements.
Experts remain bullish on the stock considering likely growth going ahead compared to other lenders.
"We believe Ujjivan SFB should continue with its growth trajectory in the near to mid-term. Among several strategies to drive growth, the company is focused on diversifying its product portfolio which is currently concentrated on micro banking loans and MSE loans," Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares & Stock Brokers said.
Also, the company's focus on growing retail deposit base for stable, low-cost source of funding, expanding its distribution network and continued investments in technology creates further optimism and room for growth, he added.
As of September 2019, percentage of gross NPAs to gross advances was 0.85 percent and net NPAs to net advances was 0.33 percent, compared to 1.88 percent and 0.29 percent, respectively, in the previous year period.
He expects the loan portfolio of small finance banks will grow at a CAGR of approximately 25 percent in the near term due to support from (i) significant market opportunity especially in the rural segment (ii) presence of high informal credit channels, (iii) geographic diversification, (iv) ability to understand local markets, (v) access to low cost funds, and (vi) loan recovery and control on NPAs.
In the next couple of years, SFBs are expected to focus on gradually building up their banking business and complying with more stringent regulatory norms whereas access to stable and granular public deposits over the long run will bring down their cost of funds, he said.
The IPO of Ujjivan Small Finance Bank was primarily as an effort by the management to meet with the listing norm of the Reserve Bank of India (RBI) that calls for listing a small finance bank within three years of the launch of operations.
Also, the RBI norms requires the promoter Ujjivan Financial Services to reduce its stake in Ujjivan SFB to 40 percent within a period of five years (i.e. by January 2022) from the date of commencement of business operations and thereafter required to further reduce its stake to 30 percent and 26 percent within a period of 10 years (i.e. by January 2027) and 12 years (i.e. by January 2029), respectively.
Notably, post IPO, the promoter’s stake will reduce to about 84 percent from 94.4 percent. | the subsidiary of microfinance lender Ujjivan Financial Services started its first trade at Rs 58 on the Bombay Stock Exchange on December 12. the stock listed with a premium of 56.75 percent over the issue price of Rs 37 per share. the public issue saw hefty subscription of nearly 166 times during December 2-4. experts remain bullish on the stock considering likely growth going ahead. | Positive |
https://www.financialexpress.com/economy/emerging-cities-could-attract-29-trillion-in-climate-cash-says-world-bank/1398082/ | Cities in emerging markets could attract $29 trillion in climate-related investments like green buildings and electric vehicles over the next decade, the World Bank’s International Finance Corporation (IFC) said on Thursday. Researchers looked at climate action plans of cities with more than 500,000 people, focusing on six sectors: green buildings, public transport, electric vehicles, waste management, water treatment and renewable energy. “Getting the cities right is absolutely essential for climate,” said Alzbeta Klein, the IFC’s director for climate business.
“They play a role in how climate looks and how it defines for the next generation ahead of us.” More than half the global population lives in urban areas, according to the IFC. Cities consume over two-thirds of the world’s energy, and account for more than 70 percent of all carbon dioxide emissions. Green investments, targets and policies in cities will be crucial if countries are to meet the emissions reduction targets endorsed by governments for the 2015 Paris Agreement to curb climate change. Green building codes, which include reducing energy consumption, will account for $24.7 trillion of climate investment opportunities in cities by 2030, the report said.
Low-carbon transportation such as energy-efficient public transport could attract $1 trillion during the same period, while electric vehicles could see $1.6 trillion in investments. Clean energy could bring $842 billion of investments, while water may attract $1 trillion, and waste management $200 billion. Over half of the total estimated investment potential will be needed in East Asian and Pacific cities as they grow and spend on real estate, infrastructure and transport, said Aditi Maheshwari, lead author of the study.
“Cities are driving economic growth in East Asia and the Pacific – they account for over 80 percent of GDP in most countries,” Maheshwari told the Thomson Reuters Foundation. “The scale of this economic opportunity is drawing people into the cities and we anticipate an additional 1.2 billion people will live in Asian cities in the next 35 years.” The rate of change in China is likely to account for a significant portion of climate-related investments in the region, she added. For cities to attract investment and create a pipeline of bankable projects, they need the ability to borrow money and develop innovative methods like green bonds and public-private partnerships, Klein said.
On Wednesday, C40 Cities, a network of cities pushing climate action, announced that nine cities would be given specialist support to develop sustainable infrastructure projects over the next two years. The cities – which include Bogota in Colombia, South Africa’s Tshwane, and Quezon City in the Philippines – will get help from national and international experts to prepare financially sound business proposals for projects. Projects will include bike-sharing, cycle lanes, waste water treatment and rooftop solar energy, the C40 statement said. | researchers looked at climate action plans of cities with more than 500,000 people. cities consume over two-thirds of the world’s energy and account for 70 percent of all carbon dioxide emissions. green building codes, which include reducing energy consumption, will account for $24.7 trillion of climate investment opportunities in cities by 2030. low-carbon transportation such as energy-efficient public transport could attract $1 trillion during the same period, while electric vehicles could see $1.6 trillion in investments. | Positive |
https://www.moneycontrol.com/news/business/godrej-properties-aims-to-raise-rs-2100cr-via-qip-4138661.html | live bse live
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Highlights:
- Firm plans to use funds for working capital needs, repay debt and to invest in its units
- If Godrej Properties raises the money, it will make 2019 one of the best years for realty fundraising -------------------------------------------------
Godrej Properties plans to raise around Rs 2,100 crore from its qualified institutional placement (QIP) launched on Tuesday, two people familiar with the development said.
The real estate arm of Godrej Group on Tuesday informed the stock exchanges that the QIP committee of its board met to consider and approve the issue price. In a QIP, a listed company sells equity shares, fully and partly convertible debentures, or any securities other than warrants that are convertible into stocks, to a qualified institutional buyer.
The company said it has set a floor price of Rs 928 for the share sale. On July 25, shares of Godrej Properties closed at Rs 982 on the BSE, up 2.21 percent.
The fundraising effort follows the strong mandate for the Bharatiya Janata Party (BJP) in the recent general election and the interest shown by public market investors towards the real estate sector, especially for developers with large focus on commercial real estate.
So far this calendar year, real estate companies have raised the most capital in the primary market, through a QIP and an IPO.
In March, Blackstone-backed Embassy Office Parks REIT raised Rs 4,750 crore through the first IPO of India’s first real estate investment trust (REIT), while DLF raised around Rs 3,200 crore through a QIP.
If Godrej Properties raises the money as planned, it will make 2019 one of the best years for real estate fund raising. Last year, Oberoi Realty was the only developer to raise funds through a Rs 1,200-crore QIP, while in 2017, Sunteck Realty and Brigade Enterprises raised Rs 500 crore each through QIPs.
Godrej Properties plans to use the funds to invest in its subsidiaries and joint ventures; capital expenditure including acquisition of land; working capital requirements and repayment of debt, it said in the exchange filing.
Investment banks Kotak Mahindra Capital, Axis Capital, CLSA and Bank of America Merrill Lynch are managing the share sale.
Godrej Properties is not the only real estate company that is planning to raise funds from public markets.
Puranik Developers and Shriram Properties, which have filed their so-called draft red herring prospectus (DRHP) for their respective initial public offerings, are also planning to soon hit the market.
While Puranik is looking to raise around Rs 1,000 crore, Shriram Properties plans to raise around Rs 1,200 crore through its IPO. “Both Puranik and Shriram are conducting investor road shows currently and are aiming to launch their respective deals in the coming months, if the market conditions are supportive," said a third person aware of the companies’ plans.
The Shriram Properties IPO will see several investors including Starwood Capital, Tata Capital Financial Services, TPG Asia and Mauritius Investors partially sell their stakes in the company. Additionally, the company plans to raise Rs 250 crore in fresh capital.
Meanwhile, Puranik Builders plans to raise Rs 810 crore in fresh capital through its IPO, while promoters will sell around 1.85 million shares through the share sale. | firm plans to raise around Rs 2,100 crore from its qualified institutional placement. fund will use funds for working capital needs, repay debt and to invest in units. fundraising effort follows strong mandate for the BJP in the recent election. Oberoi Realty was the only developer to raise funds through a Rs 1,200-crore QIP. in 2017, Sunteck Realty and Brigade Enterprises raised Rs 500 crore each through QIPs. | Positive |
https://www.financialexpress.com/industry/razorpay-acquires-opfin-introduces-corporate-credit-cards-with-rbl/1772691/ | Fintech major Razorpay on Friday said it has acquired payroll and HR management software company, Opfin. The company did not disclose the amount it has raised.
The acquisition will enable businesses to not only manage their payroll process and fund transfers, but also manage filing of taxes, compliances through a single platform without hiring any external vendors, Razorpay said in a statement.
“Payroll is a fragmented market with no clear solution. With Opfin, Razorpay hopes to make this effort a lot easier with robust technology and an enhanced experience. This acquisition is a significant part of RazorpayX’s business banking strategy,” it added.
RazorpayX is the company’s AI-driven neo-banking platform. This is Razorpay’s second acquisition in the last six months, after Thirdwatch, an AI-driven company specialising in big data and machine learning for real-time fraud prevention. Besides, Razorpay launched corporate credit cards for SMEs and startups in partnership with RBL.
With this launch, Razorpay aims to solve challenges around access to credit, short term credit, reconciliation, expense filing and help businesses lead a healthy financial life, it said. These announcements were made at the second edition of FTX, Razorpay’s flagship fintech conference in Bengaluru.
“It is important to think about financial inclusion not just in terms of consumers but also in terms of businesses…The move we have made today, helps us expand our horizon in payments and banking and solve new challenges for ambitious businesses who are wanting to disrupt the Indian economy,” Razorpay CEO and co-founder Harshil Mathur said.
Currently, the payments business forms 70 per cent of Razorpay’s revenue and the neo-banking platform, Razorpay X along with Razorpay Capital forms the rest 30 per cent. The company has been witnessing a growth rate of 35 per cent month-on-month.
“Currently powering payments for over 8 lakh businesses including the likes of Indigo, BSE, Thomas Cook, Reliance, SpiceJet, Aditya Birla, Sony and Oyo, the team plans to increase this to 14 lakh by 2020. This neo-banking platform expects a 4x growth in its volumes by the end of the next fiscal year,” the statement said. | the acquisition will enable businesses to manage payroll and fund transfers. it will also manage filing of taxes and compliances through a single platform. this is Razorpay’s second acquisition in the last six months. it follows thirdwatch, an AI-driven company specialising in big data and machine learning for real-time fraud prevention. the company has been witnessing a growth rate of 35 per cent month-on-month. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/macro-impact-of-pandemic-more-severe-than-anticipated-das/articleshow/75910873.cms | Mumbai: In his third address since India was forced to go into a lockdown, Reserve Bank of India Governor Shaktikanta Das announced extension of moratorium on loans and asset classification standstill on stressed loans by another three months till August 31. The announcement, which came 10 days before the earlier May 31 deadline, almost allowed accumulation of interest payments on working capital loans, payable in a staggered manner between September and March 2021.The governor also painted a bleak picture of the economic growth indicating that these actions announced were quite warranted.“The MPC is of the view that the macroeconomic impact of the pandemic is turning out to be more severe than initially anticipated, and various sectors of the economy are experiencing acute stress,” Das said in a video-link address. “The impact of the shock has been compounded by the interaction of supply disruptions and demand compression.”Among its other measures, the regulator also rolled over the 15,000-crore Sidbi refinance facility by another 90-days, another 15,000-crore credit line was made available to Exim Bank to meet import-export credit demands while the group exposure limits were relaxed to 30%.“The latest round of rate cuts, moratorium extension, deferment of interest on working capital facilities and relaxation in asset classification will provide the requisite balm to the economy,” said Zarin Daruwala, CEO (India), Standard Chartered Bank. “The support shown to Exim Bank, Sidbi and to importers/exporters will also help boost sentiment.”Though in their wish-list to the RBI , lenders had also asked for a one-time restructuring of all loans, restructuring of overdue loans be considered standard loans, NPA classification extended to 180 days from the current 90 days and a special term-loan package be allowed for industries worst hit by the coronavirus-induced lockdown. These requests have so far not been entertained by the regulator.“Our tendency has become that whatever has been given, just take it and ignore it and then start talking about what has not been done,” said Rajnish Kumar, chairman, SBI. “The moratorium takes care of the situation around cashflow disruptions and if someone needs after 31 August, a recast then whatever is the policy response or if there are any amendments to 7 June circular of RBI, or no amendments, banks will have to deal with the situation.”The impact of the shock has been compounded by the interaction of supply disruptions and demand compression | the announcement came 10 days before the earlier may 31 deadline. the regulator also rolled over the 15,000-crore Sidbi refinance facility by another 90-days. lenders had also asked for a one-time restructuring of all loans. the latest round of rate cuts, deferment of interest on working capital facilities and relaxation in asset classification will provide the requisite balm to the economy. | Positive |
https://www.moneycontrol.com/news/business/markets/oil-bounces-as-investors-hunt-bargains-virus-fears-cap-gains-4974231.html | Representative Image
Oil rose on Tuesday as investors snapped up bargains after crude benchmarks dropped almost 4% in the previous session, but fears that the spreading coronavirus could wreak far greater economic damage than initially thought capped gains.
Brent crude rose 29 cents, or 0.5%, to $56.59 a barrel by 0212 GMT, after slipping 3.8% on Monday, the largest single-day price fall since Feb. 3. U.S. crude futures climbed 22 cents, or 0.4%, to $51.65, recovering from a 3.7% drop in the previous session.
"WTI has regained some ground as investors looked for bargains and as the (U.S.) benchmark slipped neared a key support level of $50 per barrel," said Satoru Yoshida, a commodity analyst with Rakuten Securities.
Demand concerns savaged prices for oil and a whole swathe of industrial commodities on Monday while both U.S. and European equities suffered their steepest losses since mid-2016.
"Fears that the rapidly-spreading coronavirus outside of China could lead to a bigger-than-anticipated impact on global economy and oil demand will likely keep weighing on market sentiment," Yoshida said.
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 coronavirus death toll climbed to seven in Italy on Monday and several Middle East countries were dealing with their first infections, sending markets into a tailspin.
The coronavirus outbreak can still be beaten, the World Health Organization said on Monday, insisting it was premature to declare it a pandemic even though it had the potential to reach that level.
Asian shares extended losses on Tuesday amid fears the coronavirus was mutating into a pandemic that could cripple global supply chains and damage economies far more than initially expected.
Saudi Aramco expects the coronavirus impact on oil demand to be short-lived, however, and for consumption to rise in the second half of the year, Chief Executive Amin Nasser told Reuters on Monday.
In the United States, crude oil inventories were seen building for the fifth straight week, while refined products likely fell last week, a preliminary Reuters poll showed on Monday. | crude futures rise 22 cents, or 0.4%, to $51.65, recovering from 3.7% drop. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine helps quickly build herd immunity to put an end to the pandemic. a vaccine works by mimicking a natural infection. | Positive |
https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/alembic-pharma-expects-domestic-biz-to-grow-in-double-digits-in-the-current-fiscal/articleshow/76920887.cms | NEW DELHI: Alembic Pharmaceuticals is looking at enhancing profitability of its domestic business and expects it to grow in double digits in the current financial year with focus on high-margin products, according to the company's annual report for 2019-20.Sharing information with the company's shareholders, the drug firm said it has already started witnessing an uptick in domestic business with new product strategy in place."We completed this transition in 2019-20 and started witnessing an uptick in performance in the last quarter of the fiscal," Alembic Pharmaceuticals Managing Directors Pranav Amin and Shaunak Amin said in a joint communication.The company aims to grow its presence in the specialty and chronic therapy segments , they added."In 2020-21, we expect (domestic) business to grow in double digits in sync with the growth in the market," the company leaders noted.Strong brand recall, an efficient sales force, a growing network of supportive doctors and timely product launches are the key catalysts for this business, they added.In 2019-20, the company's revenues from domestic business stood at Rs 1,425 crore, a growth of 3 per cent over Rs 1,382 crore in 2018-19, and accounted for 31 per cent of the company's overall revenues that stood at Rs 4,606 crore.The company's international generics business, on the other hand, accounted for 54 per cent of its overall revenues in 2019-20.The segment saw a revenue growth of 39 per cent to Rs 2,473 crore in 2019-20.The revenue from the US market, a major part of the business, stood at Rs 1,976 crore in the previous financial year, a growth of 53 per cent as compared with 2018-19.Besides, revenues from other international markets remained flat at Rs 497 crore."Our agile and nimble supply chain clubbed with proactive front-end marketing helped us lead growth in the US market. Our ability to deliver high-quality products in the required quantities, in a timely manner as per the customers' convenience differentiated us from our peers," the managing directors noted.With an accelerated pace of new product launches as well as ANDA filing, the company is confident of sustaining this momentum in the future, they added.The Gujarat-based firm said it incurred a capital expenditure (capex) of Rs 697 crore in the last financial year and expects to invest around the same capital this year as well."With this, a large part of the capital expenditure is behind us. In 2020-21, our capex is likely to peak out at Rs 700 crore per annum and from 2021-22 will normalise to Rs 300-350 crore," it added.The company is investing in capacity expansion at existing plants as well as in setting up new manufacturing facilities."Post this capacity expansion, we will have enhanced new dosage offerings and will be able to cater to the strong demand in the US generics segment," the drug maker said.Benefits from these expansions are likely to start from 2021-22, it added."Our focus is on ramping up filings across ophthalmology, general injectables, oncology injectables and oral solids," the company said.The company has three research and development (R&D) facilities in Vadodara, Hyderabad and the US. According to its website, the company has six formulation and three active pharmaceutical ingredient (API) manufacturing facilities.Five formulation production units are located near Vadodara in Gujarat -- three at Panelav and two at Karakhadi. This apart, one facility is located in Sikkim.The company currently manufactures general oral solids in Panelav and is in the process of putting up oncology oral solids and oncology injectable facilities at the same location.Besides, two API manufacturing plants located at Panelav and one at Karakhadi. | annual report says domestic business will grow in double digits in 2019-20. strong brand recall, efficient sales force and timely product launches are key catalysts. revenues from domestic business stood at Rs 1,425 crore in 2019-20. international generics business accounted for 54 per cent of company's overall revenues. a capital expenditure of Rs 450 crore was incurred in the last quarter of the fiscal. | Positive |
https://www.financialexpress.com/market/commodities/uttar-pradesh-ushers-in-agri-reforms-waives-mandi-tax-for-46-fruits-veggies/1951658/ | In its first major move to usher in reforms in agri marketing space and promote farm-to-fork initiative, the Uttar Pradesh cabinet on Wednesday approved an ordinance de-listing 46 fruits and vegetables from the provisions of the APMC. This effectively eliminates the role of middlemen and allows farmers to sell their produce directly to consumers and traders outside the mandi yard.
By doing this, the government has not only done away with the condition of farmers bringing their produce to state mandis, but has also exempted them from paying the mandi tax. Farmers will now be free to sell these 46 commodities directly to food processing units and consumers at the farm itself and also sell their produce through the digital platform e-NAM and need not pay any tax. This would not only save them from paying the mandatory 2% mandi tax, but would help them reduce around 15% losses incurred in loading and unloading of their produce at the mandis. Besides, they would also save the transportation cost incurred in taking their produce from their fields to the mandis.
Agriculture minister Surya Pratap Shahi said the move was aimed at decongesting the mandis in view of the Covid-19 and would also help farmers enhance their income. “Now, licensed traders or common consumers can buy products from farmers outside the premise of mandis and farmers will be free to sell their products to food processing units or to anyone.”
He said the Cabinet also gave the nod for the proposal for permitting warehouses, silos, cold storages to set up farmers-consumer platform and realise user charges from traders for using the places as sub-mandi. “We have also taken steps to develop farmer consumer markets, which will allow vegetable growers to sell their produce at new small markets near their fields and villages.”
The state’s move comes in the backdrop of the Centre’s April 4 directive to states, asking them to facilitate direct purchase of farm produce by big retailers, aggregators and food processors. The idea behind the move is to unshackle the farmer community hit hard by the current lockdown from the fetters of the agricultural produce market committees (APMCs) that control mandis. While most states have already de-listed fruits and vegetables from the purview of APMCs, Uttar Pradesh is probably the last major state to do so. | the move is to usher in reforms in agri marketing space. it effectively eliminates the role of middlemen and allows farmers to sell their produce directly to consumers and traders outside the mandi yard. farmers will be free to sell these 46 commodities directly to food processing units and consumers at the farm itself. they will also sell their produce through the digital platform e-NAM. | Positive |
https://www.moneycontrol.com/news/business/markets/bse-nse-shut-today-on-account-of-ganesh-chaturthi-4393801.html | live bse live
nse live Volume Todays L/H More ×
The National Stock Exchange (NSE) and BSE will remain closed for trading on September 2, 2019 on account of Ganesh Chaturthi.
Wholesale commodity markets, including metal and bullion, too will remain closed for trade. There will be no trading activity in forex and commodity futures markets as well.
The benchmark indices, on August 31, ended the volatile session of the first day of the September F&O series on the higher note with Nifty finished above 11,000 mark.
The Sensex was up 263.86 points at 37,332.79, while Nifty was up 85.60 points at 11,033.90.
On the sectoral front, buying saw in the pharma index (up 2 percent), FMCG (up 1.7 percent) and metal (up 1.5 percent) PSU Bank (up 1 percent) followed by auto and IT indices. On the other hand, energy and infrastructure indices remained under pressure in trade.
The BSE Midcap and Smallcap index was up 1 percent and 0.8 percent, respectively.
Bharti Infratel, Coal India, Power Grid, Eicher Motors and ONGC were among major losers on the Nifty, while gainers were Yes Bank, Sun Pharma, IndusInd Bank, Zee Entertainment and Tata Steel.
"Nifty formed a Hammer candle on daily scale. Now it has to continue to hold above 11,000 levels to witness an upmove towards 11,111 then 11,141 levels while on the downside supports are seen at 10,950 then 10,880 levels," Chandan Taparia, Associate Vice President | Analyst-Derivatives at Motilal Oswal Financial Services said. | the national stock exchange and BSE will remain closed for trading on September 2, 2019 on account of Ganesh Chaturthi. wholesale commodity markets, including metal and bullion, too will remain closed for trade. the benchmark indices, on august 31, ended the volatile session of the first day of the September F&O series on the higher note. the pharma index (up 2 percent), FMCG (up 1.7 percent) and metal (up 1.5 percent) | Positive |
https://economictimes.indiatimes.com/industry/energy/power/vikram-solar-commissions-over-900-kw-solar-plant-at-falta-unit-in-west-bengal/articleshow/79923824.cms | Vikram
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NEW DELHI: Clean energy solutions provideron Wednesday announced commissioning of a 919.73 kilowatt rooftopitsfacilityThe newly commissionedwill fulfil27 per cent of the total electricity requirement of the saidwhere the company produces PV (photo-voltaic) modules,saida statement.commissioned a 919.73 KWp (kilowatt peak) rooftopproject on their manufacturing facilityearlier this month," it said.The 919.73 KWpconsists of 2,574panels ranging from 325Wp to 400Wp covering an area of 6,500 square meters. On an annual basis, thewill generate 1,350.58 MWh (megawatt hour) energy,said.The company's CEO (chief executive officer) Saibaba Vutukuri said, the rooftop project was envisioned not only to cater to the captive energy requirements of its manufacturingbut also to make it a green energyand enabling India's transition to a low-carbon economy.is a leadingenergy solutions provider, specialisingefficient PV module manufacturing and comprehensive EPC solutions. | the newly commissionedwill fulfil27 per cent of the total electricity requirement of the saidwhere the company produces PV (photo-voltaic) modules. the 919.73 KWpconsists of 2,574panels ranging from 325Wp to 400Wp covering an area of 6,500 square meters. on an annual basis, thewill generate 1,350.58 MWh (megawatt hour) energy. | Positive |
https://economictimes.indiatimes.com/tech/hardware/realme-sells-15-mn-handset-in-1st-yr-of-operation-targets-to-double-it-in-2020/articleshow/72664915.cms | Elevate Your Tech Prowess with High-Value Skill Courses Offering College Course Website IIM Kozhikode IIMK Advanced Data Science For Managers Visit MIT MIT Technology Leadership and Innovation Visit IIM Lucknow IIML Executive Programme in FinTech, Banking & Applied Risk Management Visit
NEW DELHI: Chinese handset maker Realme has become the fastest-growing smartphone brand in India, selling 15 million handsets in the very first year of its operations and is targeting to double the sales next year, its CEO Madhav Sheth said.Realme, which began as an Oppo sub-brand in May 2018, was promptly spun off into a standalone entity and is now taking on bigger rival Xiaomi with similar price points and segments of Rs 7,000-20,000 phones.Unlike other Chinese players like Vivo and Oppo, which are offline-focussed with investments in channel marketing and offline distribution, Realme aped the strategy of the market leader closely and focussed on online from the start.Sheth, who founded the company together with BBK Group, said Realme is ranked seventh fastest growing smartphone brand globally."We will end 2019, the first full year of our operations, with sales of 15 million handsets. We are targeting to at least double this in 2020," he told PTI here.The brand commands 14.3 per cent market share, he said quoting industry data by IDC.Realme has now risen to become the fourth biggest smartphone brand in India in the third quarter, according to IDC. Its popularity exploded on the same lines as Xiaomi, which has been selling its phones in the country since 2015, by offering a good price-to-quality ratio on its smartphones.According to IDC, Xiaomi is the market leader with 27.1 per cent share followed by Samsung (18.9 per cent) and Vivo (15.2 per cent) in the third quarter.Realme had 3.1 per cent market share in the third quarter of 2018.Starting from India, today Realme is present in 20 markets including China, Southeast Asia, Russia, Europe, he said."We have sold 5.2 million smartphones during Diwali month alone," Sheth said.According to Counterpoint Research, Realme shipped 10 million smartphones in third quarter of 2019, an 808 per cent year-on-year growth in shipments. Phones like the Realme C2, Realme 3i and Realme 5 were among the company's best-selling models during the festive season sales.Counterpoint report says the company now ranks seventh in the global smartphone market.Sheth said the company plans to roll out an offline-only series for India which will be named by the end of this year. Aimed at the mid-premium range, the new series will focus more on all-rounder user experiences such as a better battery, touch, and feel (aesthetics)."We are lining up with more smart accessories with great performance and trendy design. Realme will become a tech lifestyle brand in 2020," he said.Realme has 4 successful product line-ups in India: C series, Number series, Pro series, and X series.Realme maintains a very strong presence online and is already the number 1 brand on Flipkart and number 2 overall. The brand is also expanding its presence in offline markets.It is targeting 30 per cent sales from offline and 70 per cent from online, he said.BBK Electronics also owns Vivo and Oppo smartphone brands.He said Realme is already an independent entity."We wanted to clarify that Realme Mobile Telecommunications Private Ltd is already an independent brand and legal entity," he said adding the brand was set up by him and founder Sky Li on May 4, 2018.BBK holds majority stake and he has a minority interest in the firm, Sheth said without giving details. | realme is the fastest-growing smartphone brand in india, selling 15 million handsets in the first year of its operations. the brand commands 14.3 per cent market share, according to IDC. the company is targeting to double the sales next year. it is the fourth biggest smartphone brand in india. the company is also a global player in the smartphone industry. | Positive |
https://www.financialexpress.com/market/sensex-regains-39000-mark-as-indices-end-near-days-high-bank-stocks-surge-nifty-pharma-gains-2/2083829/ | Domestic benchmark indices traded between a tight range for the majority of the trading session before swinging higher in the closing hours of trade. S&P BSE Sensex was up 287 points sitting above the 39,000 mark while the 50-stock Nifty closed comfortably with 11,524 points. Volatility slipped further to sit below the 21 levels. Bank stocks surged, helping the indices close higher. Midcap and small cap stocks continued to rally, beating the benchmarks yet again on Tuesday. With the retail inflation coming in at 6.69% yesterday the economic data was also favourable.
Midcap, small cap rally continues: Once again the midcap and small cap indices rallied, beating the gains registered by benchmark indices. S&P BSE Midcap was up 0.85% while the Small cap index gained 1.44%. Nifty smallcap 100 and Midcap 100 gained over 1%, each on Tuesday. “Market Breadth improved for the second consecutive day as several Midcap stocks across diverse sectors posted handsome gains. The Small-Cap Index rose today on the back of a stellar 5% gain yesterday sending out a clear message that Investors are looking at a more broad market rally after having witnessed a polarised market for a considerable length of time,” said S Ranganathan, Head of Research at LKP Securities.
Top gainers: IndusInd Bank, Bharti Airtel, and Axis Bank were the top gainers on Sensex, while Godrej Agrovet and JSW Energy were the top BSE Midcap gainers. Mphasis and Cholamandalam Financial Holdings followed. On the BSE Smallcap index, IDFC, Quick Heal, and Aegis Logistics were the top gainers, surging over 10% each.
Top drags: Titan, which was among the top gainers during the initial hours of trade, ended the day’s trading session as one of the worst performers. Maruti Suzuki India and ITC were the other top drags. Among BSE Midcap constituents, Adani Enterprises and NBCC were the worst performers. Sterling and Wilson Solar, Take Solutions, and Vipul Ltd were the top drags among smallcap constituents.
Sectoral watch: Nifty Auto, FMCG, Media, Metal, and Realty were the only indices to end the day with losses. Nifty Private Bank index moved 1.85% higher while Nifty Pharma gained 1.93%. On BSE the telecom index gained close to 2% making it the best performing sectoral index on BSE. “Encouraging Chinese retail sales and industrial production data, hopes of vaccine and a flurry of corporate deals pushed indices higher. Volumes on the NSE were in line with recent averages. Banks and Pharma indices rose while realty index was down. Smallcap and midcap indices rose more than the Nifty,” said Deepak Jasani, Head of Retail Research, HDFC Securities.
Asian stocks gain: Among major Asian peers, only Nikkei 225 and TOPIX of Japan ended with losses. Shanghai Composite was up along with Hang Seng. KOSPI and KOSDAQ gained as well.
Technical take: “The short term trend of Nifty is range bound with positive bias. Renewed buying enthusiasm could only occur above 11600 and that is likely to pull the market towards 11800 levels in a quick period of time. Important lower supports to be watched at 11380 and a breach below this support could trigger more weakness in the near term,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities. | domestic benchmark indices traded between a tight range for the majority of the trading session before swinging higher in the closing hours of trade. S&P BSE Sensex was up 287 points sitting above the 39,000 mark while the 50-stock Nifty closed comfortably with 11,524 points. bank stocks surged, helping the indices close higher. | Positive |
https://www.moneycontrol.com/news/business/companies/tpg-joins-rush-of-investors-in-jio-platforms-as-ril-units-total-fundraising-races-past-rs-1-lakh-crore-5400701.html | TPG, an investor in companies such as Airbnb, Uber and Spotify, will invest Rs 4,546.80 crore for a 0.93 percent stake in Jio Platforms, marking a historic ninth deal in seven weeks and taking the combined fundraising in the Reliance Industries unit well past Rs 1 lakh crore.
The rush of deals in Jio Platforms, which runs movie, news and music apps as well as the telecom enterprise Jio Infocomm, marks the largest uninterrupted fundraising by a company anywhere in the world. RIL, the oil-to-retail-to-telecom conglomerate, has now sold 21.99 percent stake in Jio and raised Rs 102,432.15 crore from some of the world’s leading technology investors.
Rush of deals
All the deals were concluded amid a global lockdown, a testament to India’s huge digital potential and a strong endorsement of Jio’s formidable strategy, tech capabilities, disruptive business model and secular long-term growth potential.
TPG’s investment at an equity valuation of Rs 4.91 lakh crore and an enterprise valuation of Rs 5.16 lakh crore follows the purchase of 1.16 percent stake by Abu Dhabi Investment Authority (ADIA) for Rs 5,683.5 crore on June 7.
The series of investments in Jio was led by a 9.99 percent stake sale to Facebook Inc for Rs 43,574 crore on April 22.
Also Read: Facebook buys 9.9% stake in Reliance Jio for Rs 43,574 crore in largest tech FDI
Since then, General Atlantic, Silver Lake (twice), Vista Equity Partners, KKR, Mubadala Investment Company and ADIA have spent money on Jio.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said on the deal, “Today, I am happy to welcome TPG as valued investors in our continued efforts towards digitally empowering the lives of Indians through the creation of a digital ecosystem. We have been impressed by TPG’s track record of investing in global technology businesses which serve hundreds of millions of consumers and small businesses, making the societies we live in better.”
Jim Coulter, Co-CEO TPG, said, “We are excited to partner Reliance to invest in Jio. As an investor in growth, change, and innovation for over 25 years – and with a longstanding presence in India -- we are excited to play an early role in Jio's journey as they continue to transform and advance India's digital economy. Jio is a disruptive industry leader that is empowering small businesses and consumers across India by providing them with critical, high-quality digital services. The company is bringing unmatched potential and execution capabilities to the market, setting the tone for all technology companies to come.”
Jio Platforms is a next-generation technology platform focused on providing high-quality and affordable digital services across India, with nearly 400 million subscribers.
Jio Platforms has made significant investments across its digital ecosystem, powered by leading technologies spanning broadband connectivity, smart devices, cloud and edge computing, big data analytics, artificial intelligence, Internet of Things, augmented and mixed reality and blockchain.
TPG, a leading global alternative asset firm founded in 1992, manages assets worth more than $119 billion across a wide range of classes such as private equity, growth equity, real estate, credit and public equity, and runs offices in more than 16 countries.
In TPG’s more than 25-year history, it has built an ecosystem made up of hundreds of portfolio companies and a value-added network of professionals, executives and advisors around the world. By offering institutional support and global resources, TPG enables these companies to reach their full potential and unlock greater possibilities.
Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. | a historic ninth deal in seven weeks for a 0.93 percent stake in Jio Platforms. rush of deals marks the largest uninterrupted fundraising by a company anywhere in the world. the deal is the largest ever by a company in the world. the rush of deals was concluded amid a global lockdown. a 9.99 percent stake sale to facebook led to a 9.99 percent stake sale to KKR. | Positive |
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Mumbai: Profit at Twitter’s Indian unit doubled and revenue increased 31% in the year ended March, indicating improved business for the social media platform. Net profit at Twitter Communications India rose 108% to Rs 5.8 crore, according to company filings sourced from Veratech. Revenue climbed to Rs 56.9 crore during 2018-19 from Rs 43.4 crore a year ago.Twitter spokesperson said it does not provide country-specific sales and the India operating revenue refers to its service fee income.“This includes marketing support, business planning assistance and related services to build and expand the internet user community and potential advertisers in India,” added the spokesperson. Globally, almost 90% of Twitter’s advertising revenue is generated from mobile devices. “However, in emerging markets like India and Pakistan, a significant portion of users use feature phones and communicate via SMS messaging, both of which have limited functionality and neither of which may be able to take full advantage of our products and services offered on smartphone or our website or desktop applications,” the company said in its 2019 annual report.Most marketers have increased advertising spending on digital media, especially in urban areas where Wi-Fi and affordable mobile connections are available. While all social media compete for digital dominance, companies consider Google and Facebook more powerful advertising platforms than Twitter.Developing markets such as India lag behind the developed world in consumer use of digital devices with companies slower to embrace digital media. Traditional media still secures the bulk of advertising budgets in the country. According to a report by Dentsu Aegis Network , digital media spend is expected to grow 32.7% in 2019 to Rs 14,400 crore, or about a fifth of overall ad spends in the country. | revenue climbed to Rs 56.9 crore during 2018-19 from Rs 43.4 crore a year ago. twitter's revenue refers to its service fee income. 90% of twitter's advertising revenue is generated from mobile devices. a report by dentsu aegis network predicts digital media spend will grow 32.7% in 2019 to Rs 14,400 crore. | Positive |
https://www.moneycontrol.com/news/business/economy/policy-indias-e-commerce-is-covid-19-resistant-but-reforms-are-required-5315771.html | Blaise Fernandes
There are two stories that remain COVID-19 resistant. One is that Amazon has seen a spike in its share price of over 30 percent since the onset of the pandemic, and the second is that of Jio Platforms would have attracted FDI of over $10 billion right in the midst of the pandemic.
This augurs well for the Digital India e-commerce story, which till date has also seen mega-sized investments, of $16 billion and an estimated $5 billion till date, in the e-commerce sector by Walmart and Amazon.
The flood of e-commerce investments is India’s last chance to revive the MSME and agricultural sector, but urgent reforms are needed.
Some of the factors that are attracting these global players are as follows: India has about 504 million active monthly Internet users; by 2022, India will have 850 million smartphone users; low data costs (global average of 1 GB is about $5, while in India it is 26 cents); State-aided broadband network is rolling out in 250,000 villages; India’s retail market offers a $1 trillion opportunity; 90 percent of retail is controlled by about 6.6 million kirana stores, which COVID-19 has brought closer to the customer; for multiple reason big retail formats have not found it easy in India, and; finally, in India, with the Facebook-Jio deal, the hub and spoke model for retail if unfolding.
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
It is important that the regulators safeguard against the ‘Amazonisation’ of the economy and over-dependence on one player. They must also ensure a level playing field for all e-commerce players. This will benefit the consumer and turbo charge the MSME sector, and the Digital India and Make In India components of the government’s vision.
To achieve this, effective steps must be taken. Some of them are:
The regulator must stay to ahead of the curve. There is data to prove that even the billions of dollars imposed upon big tech by the European Union and the US was a fraction of the profits they generated by the predatory tactics. This would require ongoing consultations with think tanks and academia, e-commerce dispute resolution becoming part of the daily routine for officers in every district, capacity building by way of training and refresher courses have to begin right away, and, international experts must be invited to conduct training sessions and faculty members from our training institutes in Mussoorie, Hyderabad, Nagpur and Bhopal must be sent overseas to study public policy in e-commerce.
The regulator will have to demolish the notion of a walled garden around platform ecosystems, and data and privacy laws must follow global best practices upholding the consumers’ interest. The digital divide is another area of concern and the regulator will have to ensure equal digital access, which will be the first step towards a truly pan-India market place and equal opportunity.
E-commerce will make or break the MSME sector if the gatekeepers allow for free flow of products and do not stifle sale of smaller brands to promote their own branded products. This calls for an overhaul of the consumer courts and redress forums. The use of e-courts for consumer disputes will safeguard the smallest buyers and sellers, even in the remotest part of India.
Farm-to-fridge via e-commerce is the accelerator to double farm income, but the bottlenecks need to be addressed. Programmes such as GI tagging of goods, micro food enterprises, and agroecology will get a boost with a common market via these platforms. Given the infrastructure bottlenecks in our agriculture sector, drones are a sure-fire way of bypassing these barriers and making farm-to-fridge seamless. The director general of civil aviation must be consulted on a drone policy for e-commerce. In the current pandemic, had there been a drone policy for e-commerce, economic activity would have continued without any break.
Self-reliance is built on the backbone of innovation and creativity. The Intellectual Property Act, 2016, will need revisiting to protect the IPR of the artisan from Bastar, the craftsman from Moradabad, the weaver from Kancheepuram or the Unnani or Auryedic practitioners who’s found an immunity booster for common cold.
It will also be a step towards bridging the wealth gap. Secure but seamless payment gateways will ensure the digital divide is bridged faster.In nation-states the rules are top-down, and platforms are the enablers to control minds and consumption patterns; while in liberal democracies the lack of control has enabled technology to dictate the agenda. Can emerging markets look at India for an e-commerce policy where the regulator has played a part, but not overregulated? The regulators should be kept far away from price controls and let the market dynamics play out freely. That will ensure an Atmanirbhar India.
Blaise Fernandes is Director, Gateway House. Views are personal. | amazon has seen a spike in its share price of over 30 percent since the onset of the pandemic. e-commerce investments is India’s last chance to revive the MSME and agricultural sector. by 2022, India will have 850 million smartphone users. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/burger-king-listing-today-what-the-market-expects/articleshow/79714274.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website Indian School of Business ISB Chief Digital Officer Visit IIM Kozhikode IIMK Chief Product Officer Programme Visit IIM Lucknow IIML Chief Operations Officer Programme Visit
We are very positive on the QSR segment and both Burger King as well as Westlife Development which runs the McDonald’s chain, says, CIO,We are very positive on this segment as such. In our portfolios, we already have Westlife Development. It is a competitor of Burger King and runs the McDonald's chain. Burger Kings had priced the initial public offer (IPO) very attractively plus the timing was in their favour. At this time people are in a mood to take on risk because markets are at peak and Everybody is in the mood to join the party. That is why they have got such a good response and the pricing also was quite attractive.In terms of fundamentals, both the companies are equally good. We have had a positive view on Westlife for a very long time and on traditional parameters of valuations, you will find all these companies to be costly but one has to see what kind of numbers they can generate over a period of time. The next three years’, five years’ outlooks should be looked at. We are positive on both the stocks We have a positive view on most of these companies because one, they are normally priced to perfection and so they do not give too much comfort on the valuation. Second, the appreciation in other stocks is normally relatively better. One tends to prefer the other sectors or other stocks but if somebody wants a conservative portfolio, these are all good stocks and one should continue. Within these staples, Unilever and Nestle are the two preferred picks. We have been avoiding ITC for quite some time although in the last few days, it has performed. But Unilever and Nestle both have shown much better capital efficiency, much better market resilience than what ITC even though the later ITC has always traded at much lower valuation. Our preference has been Unilever and Nestle and we continue with that. | a range of CXO courses are available at Indian School of Business. we are very positive on the QSR segment and both Burger King and Westlife Development which runs the McDonald's chain. we have been avoiding ITC for quite some time. but in the last few days, it has performed much better than ITC. we are positive on both the stocks and we continue with that. | Positive |
https://www.livemint.com/Money/42lUqi10b6YT5UDIqrVphN/Stock-markets-live-Sensex-Nifty-set-for-a-positive-start.html | New Delhi: The Sensex settled marginally higher today to extend its record run to third day. The Sensex ended 33 points higher at record closing high of 36,858. The Nifty ended flat 11,132, down 2 points. Earlier in the session, the Sensex climbed to a new intra-day high of 36,947. Global stock markets were mixed Wednesday after Wall Street gained on strong corporate earnings amid US-Chinese trade tensions. The rupee traded higher against the US dollar at 68.73/dollar.
Metal stocks were in the limelight today. Tata Steel and Vedanta rose over 1%. Among financials, SBI rose 1.8% while HDFC Bank and IndusInd Bank also advanced. Adani Ports and Special Economic Zone Ltd advanced 1.5% after conglomerate Adani Group said on Tuesday its coal mining volumes are expected to touch 80 million tonnes by the end of March 2021. Adani Enterprises Ltd was up 4.5%.
HDFC Ltd climbed 1% after the company said it would consider raising of external commercial borrowings up to $1.5 billion.
Among the gainers, ICICI Prudential Life Insurance rose 4.7% after brokerages forecast the insurer’s margins would expand in the following quarters.
Bharti Airtel fell over 1% after rival Idea Cellular Ltd paid the department of telecommunications on Tuesday, clearing the way for its merger with Vodafone’s Indian unit. Analysts expect highly competitive tariff plans from Idea-Vodafone that could further roil an already disrupted sector.
Cement makers reversed the last session’s gains, with UltraTech Cement Ltd down 2.6% and ACC declining 0.8%. The National Company Law Appellate Tribunal (NCLAT) today dismissed cement manufacturers’ plea, challenging the order of fair trade regulator CCI to impose a penalty of ₹ 6,700 crore for alleged cartelization.
“We’ll see a mid-cap rally if NSE crosses 11,171," said Rusmik Oza, senior vice-president (head of fundamental research) at Kotak Securities. “Because of a low base last year due to factors like GST, we are expecting good results this quarter and the next, and the market will continue its upward movement."
The BSE midcap index ended marginally lower today.
With Agency Inputs
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | Sensex ended 33 points higher at record closing high of 36,858. the Sensex climbed to a new intra-day high of 36,947. the rupee traded higher against the us dollar at 68.73/dollar. metal stocks were in the limelight today. Tata Steel and Vedanta rose over 1%. | Positive |
https://www.moneycontrol.com/news/business/markets/bullish-momentum-to-continue-till-election-outcome-use-dips-to-buy-3690531.html | live bse live
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Sumit Bilgaiyan
Finally, some profit booking was seen at higher levels and benchmark indices closed off from their respective highs on March 22. Nifty rallied 987 points from February 19 largely led by strong inflows from FIIs, who have poured more than Rs 26,000 crore in March and more than Rs 40,000 crore since February.
During March 2017, FIIs had poured Rs 26,473.17 crore, which was highest ever monthly investment by FIIs in India. This time FIIs have already invested Rs 26,232.6 crore during March as of now and it can become best ever month in history for FIIs investment.
We strongly believe that bullish momentum will continue in the market till May 23, so use every dip for buying.
For the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650.
Here are the top stock trading ideas that can give good returns in mid to long term:
Maharashtra Seamless:
Maharashtra Seamless is a DP Jindal group company and largest producer of seamless pipes in India with a capacity of 550 KPTA. It is also one of the major producers of ERW pipes in India with a capacity of 220 KPTA. It also has 43 MW solar and wind energy portfolio. The company has reported strong results for Q3FY19. Its sales grew 40 percent to Rs 785.88 crore and EBITDA grew 158 percent Rs 157 crore, while it’s PAT zoomed 139 percent Rs 92.77 crore.
During 9MFY19, its PAT grew 156 percent to Rs 281.61 crore on 37 percent higher sales of Rs 2,096.14 crore. It has an order book of Rs 1,300 crore. L&T Mutual Fund holds 5.1 percent and IDFC Mutual Fund holds 1.4 percent stake in this company. Currently, the stock trades at a P/E of 9x. The stock has given a superb breakout on the weekly chart. We recommend buying in a staggered manner for medium to long term.
Voltamp Transformers
Voltamp Transformers has installed facility to manufacture Oil filled Power and Distribution Transformers up to 160MVA, 220kV Class, Resin Impregnated Dry type Transformers up to 5 MVA, 11KV Class (in technical collaboration with Mora, Germany) and Cast Resin Dry type Transformers up to 12.5 MVA, 33 KV Class (in technical collaboration with HTT, Germany).
The company’s production facilities are located at Makarpura and Savli in Vadodara, Gujarat with an aggregate installed capacity of 13,000 MVA per annum. The company has posted stable numbers for 9MFY19. During 9MFY19, its net profit stood to Rs 52.67 crore from Rs 53.38 crore YoY on 32 percent higher sales of Rs 570.04 crore.
EBITDA grew 11 percent to Rs 82.08 crore during 9MFY19. Currently, the stock trades at a P/E of 15.9x. With an equity base of just Rs 10.12 crore, the company has a huge reserve of around Rs.622 crore.
Mutual Funds hold 18.74 percent and FIIs hold 15.57 percent stake in this company. Promoters have also increased their stake, which is a positive sign. It is regularly dividend paying company and it has paid a healthy 150 percent dividend for FY18. We recommend buying in a staggered manner for medium to long term.
Bharat Electronics
Bharat Electronics Limited designs, manufactures, supplies, and exports electronic equipment and systems for the defence and civilian markets. It has reported excellent results for Q3FY19. Sales grew 8.32 percent YoY to Rs 2656.38 crore while EBITDA grew 59 percent to Rs 785.74 crore and PAT increased 68 percent to Rs 507.63 crore as against Rs 302.84 crore.
It’s PAT increased 50 percent to Rs 1,258.67 crore in 9MFY19. It has an order book or above Rs 50,000 crore, which is above five times its FY18 revenues and provides strong revenue visibility.
At CMP, the stock is trading at P/E of just 12x. Being a Navratna Company, it is paying a huge dividend to shareholders. It has paid 200 percent dividend for FY18 and paid 100 percent interim dividend for FY19. Technically also stock is ready for a upmove. We recommend buying in a staggered manner for medium to long term.
The author is Founder of Equity99
Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | Nifty rallied 987 points from February 19 largely led by strong inflows from FIIs. FIIs have poured more than Rs 26,000 crore in march and more than Rs 40,000 crore since February. for the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650. for the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650. | Positive |
https://www.businesstoday.in/top-story/fm-sitharaman-announces-immediate-bank-recapitalisation-of-rs-70000-crore/story/374841.html | Finance Minister Nirmala Sitharaman has announced a slew of measures to nurse the ailing Indian economy to health, including an immediate release of Rs 70,000 crore to public sector banks. She also said that banks have agreed to pass on the benefits of repo rate cut to its customers and that EMI for various loans will be reduced by linking repo rates to interest rates.
These announcements come as Moody's cut India's GDP growth forecast to 6.2 per cent in 2019 calendar year from its previous estimation of 6.8 per cent. Sitharaman addressed issues from taxation measures and facilitating wealth creators to lending a hand to automotive sector as well as banks and MSMEs.
Here are the measures the Finance Minister announced to help banks, NBFCs and MSMEs.
Additional credit expansion through PSBs: Sitharaman announced that the government will release Rs 70,000 crore upfront and additional lending and liquidity to the tune of Rs 5 lakh crore to PSBs, thereby benefitting corporates, retail borrowers, MSMEs, small traders and others.
Sitharaman announced that the government will release Rs 70,000 crore upfront and additional lending and liquidity to the tune of Rs 5 lakh crore to PSBs, thereby benefitting corporates, retail borrowers, MSMEs, small traders and others. Timely rate cuts: While RBI has been cutting the repo rate, banks were yet to pass on the benefit to consumers. The Finance Minister said that banks have now agreed to pass on rate cut through MCLR reduction to benefit borrowers.
While RBI has been cutting the repo rate, banks were yet to pass on the benefit to consumers. The Finance Minister said that banks have now agreed to pass on rate cut through MCLR reduction to benefit borrowers. Reduced EMI: The minister said that EMI will be reduced for housing loans, vehicle and other retail loans by directly linking repo rates to interest rates. Working capital loans for industry is also supposed to become cheaper.
The minister said that EMI will be reduced for housing loans, vehicle and other retail loans by directly linking repo rates to interest rates. Working capital loans for industry is also supposed to become cheaper. Customer ease: PSBs will ensure return of loan documents within 15 days of loan closure to reduce harassment and bring in efficiency. This move will benefit borrowers with mortgaged assets.
PSBs will ensure return of loan documents within 15 days of loan closure to reduce harassment and bring in efficiency. This move will benefit borrowers with mortgaged assets. Online tracking of loan applications: In another move to benefit borrowers, Sitharaman announced that customers can track online loan applications for retail, MSME, housing, vehicle, working capital, limit enhancements, renewals and more. She said that this move would reduce turnaround time for customers, reduce harassment and increase transparency.
In another move to benefit borrowers, Sitharaman announced that customers can track online loan applications for retail, MSME, housing, vehicle, working capital, limit enhancements, renewals and more. She said that this move would reduce turnaround time for customers, reduce harassment and increase transparency. Transparent one time settlement policy: The Finance Minister said that banks will issue transparent one time settlement (OTS) policy for MSME and retail borrowers to settle their overdues.
The Finance Minister said that banks will issue transparent one time settlement (OTS) policy for MSME and retail borrowers to settle their overdues. Honest decision making: The minister said that CVC has asked Internal Advisory Committee (IAC) in banks to classify cases as vigilance and non-vigilance in order to support decision making and support genuine commercial decisions by bankers.
The minister said that CVC has asked Internal Advisory Committee (IAC) in banks to classify cases as vigilance and non-vigilance in order to support decision making and support genuine commercial decisions by bankers. Support to NBFC/HFCs: In order to give more credit support for purchase of houses, vehicles and consumption goods, Nirmala Sitharaman announced additional liquidity support of Rs 30,000 crore to HFCs. She also said that Partial Credit Guarantee scheme for purchase of pooled assets of NBFC/HFCs to up to Rs 1 lakh crore will be monitored at the highest level in each bank. Prepayment notices to banks will also be monitored by banks.
In order to give more credit support for purchase of houses, vehicles and consumption goods, Nirmala Sitharaman announced additional liquidity support of Rs 30,000 crore to HFCs. She also said that Partial Credit Guarantee scheme for purchase of pooled assets of NBFC/HFCs to up to Rs 1 lakh crore will be monitored at the highest level in each bank. Prepayment notices to banks will also be monitored by banks. Bank KYC to be used by NBFCs: The minister said that NBFCs have been permitted to use the Aadhaar-authenticated bank KYC to avoid repeated process. She also added that necessary changes will be made in the PMLA and Aadhaar rules to facilitate this move. Easier and faster onboarding of customers was also announced by Sitharaman.
The minister said that NBFCs have been permitted to use the Aadhaar-authenticated bank KYC to avoid repeated process. She also added that necessary changes will be made in the PMLA and Aadhaar rules to facilitate this move. Easier and faster onboarding of customers was also announced by Sitharaman. PSBs to fast-track collaboration for loans to MSMEs: In order to take advantage of liquidity with PSBs and last mile customer connect of NBFCs, PSBs will fast-track collaboration for loans to MSMEs, small traders and self-help groups, MFI client borrowers in co-origination mode with NBFCs.
BT Buzz: Changes in Companies Act have a carrot and stick approach
BT Buzz: Reliance Jio gears up for next big disruption
BT Buzz: Will new rules benefit patients and disrupt the pharmacy market? | finance minister announces release of Rs 70,000 crore to public sector banks. banks will pass on benefits of repo rate cut to customers, she says. EMI for various loans will be reduced by linking repo rates to interest rates. comes as moody's cut india's GDP growth forecast to 6.2 per cent. sitharaman addressed issues from taxation measures and facilitating wealth creators to lending a hand to banks and MSMEs. | Positive |
https://www.moneycontrol.com/news/business/markets/market-headstart-nifty-likely-to-open-flat-canara-bank-hdfc-life-top-buys-4154671.html | The Nifty50 is expected to open flat-to-higher on Monday tracking Asian markets which were trading higher after the United States and China agreed on Saturday to restart trade talks.
On Friday, Wall Street advanced with the S&P 500 and the Dow closing the book on their best June in generations. “The S&P 500 had its best June since 1955. The Dow posted its biggest June percentage gain since 1938, the waning days of the Great Depression,” said a Reuters report.
Oil prices rose more than USD 1 a barrel on Monday after Saudi Arabia, Russia, Iraq backed an extension of supply cuts for another six to nine months ahead of an OPEC meeting this week, added the report.
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 9.5 points or 0.08 percent. Nifty futures were trading around 11,847-level on the Singaporean Exchange.
The S&P BSE Sensex was down 191 points to 39,394 while the Nifty50 closed 52 points down at 11,788 on Friday.
The Indian Rupee June 28 notched a marginal 4 paise gain at 69.03. On a weekly basis, the Indian currency has gained 55 paise.
Foreign investors infused a net amount of Rs 10,384 crore into the Indian capital markets in June and remained net buyers for the fifth month in a row on expectations of continued economic reforms.
Stocks in news:
Price Waterhouse & Co Chartered Accountants LLP has resigned as the auditor of Eveready Industries citing reservations on certain inter-group transactions that promoter group made during FY19.
Reliance Home Finance has missed payment towards maturing non-convertible debentures (NCDs) worth Rs 400 crore to Reliance Mutual Fund on June 28, and on June 29, the NCD was extended by four months till October 31.
JSW Steel, the largest steelmaker in India, has taken a step closer in its pursuit of Asian Colour Coated Ispat, which had debts of Rs 4,900 crore and was referred to the insolvency courts.
Technical Recommendations:
We spoke to Axis Securities and here’s what they have to recommend:
HDFC Life: Buy| LTP: Rs 464.60| Target: Rs 486| Stop Loss: Rs 448| Upside 6%
Canara Bank Ltd: Buy| LTP: Rs 284| Target: Rs 299| Stop Loss: Rs 271| Upside 7%
Apollo Hospitals Ltd: Buy| LTP: Rs 1,365.15| Target: Rs 1440| Stop Loss: Rs 1322| Upside 6%
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. | the s&p 500 and the Dow closed the book on their best June in generations. oil prices rose more than USD 1 a barrel on monday after Saudi Arabia, Russia, Iraq backed an extension of supply cuts. the Indian Rupee June 28 notched a marginal 4 paise gain at 69.03. foreign investors infused a net amount of Rs 10,384 crore into the Indian capital markets in June. | Positive |
https://economictimes.indiatimes.com/markets/stocks/earnings/ril-misses-estimates-on-rs-4267-crore-exceptional-loss-key-q4-highlights/articleshow/75475503.cms |
Mumbai: Energy-to-telecom conglomerate Reliance Industries missed Street estimates as it reported a 38.73 per cent year-on-year (YoY) fall in consolidated net profit .The company reported a consolidated net profit of Rs 6,348 crore for the quarter ended March 31, while analysts in an ETNow poll had projected the number at Rs 10,500 crore.For the quarter ended March, RIL logged revenues of Rs 1,51,209 crore, a decrease of 2.5 per cent from a year ago, primarily on account of 10.1 per cent decline in refining and petrochemicals business revenues.This was partially offset by continuing growth in consumer businesses, the company said, pointing that its digital services and retail business recorded an increase of 30 per cent and 4.2 per cent YoY respectively in revenue during the quarter.Reliance Jio Infocomm reported a near tripling of net profit for the January-March period, helped by tariff raises that aided its average revenue per user (ARPU) rise for the second straight quarter after seven quarters of declines.The telco, led by Mukesh Ambani, on Thursday said profit for the quarter rose to Rs 2,331 crore compared with Rs 840 crore a year ago. The market had estimated profit to be around Rs 2,000 crore. Profit was up 73 per cent from the preceding quarter. It is the company’s tenth profitable quarter in a row.The company said it had witnessed strong investor interest in Jio platforms and will receive Rs 43,574 crore from Facebook for a 9.99 per cent stake. Jio platforms have also received interest from other global investors for similar-sized additional stakeRIL announced a rights issue of Rs 53,125 crore, a first by the company in three decades and also India’s biggest ever in history. The issue will be in the ratio of 1:15 at a price of Rs 1,257 per share. It said founders will fully subscribe to the rights issue, and will also take up unsubscribed portions, if any.The company said it will complete a capital raise of over Rs 104,000 crore by Q1 - including the rights issue, Facebook investment and the previous investment by BP.The company announced a dividend of Rs 6.50 per share.There has been significant volatility in oil prices, resulting in uncertainty and sharp reduction in oil prices, the company noted. Through the quarter, oil prices declined 73 per cent impacting inventory valuation. In light of this, RIL provided for non-cash inventory holding losses for the quarter, which has been disclosed as an exceptional item of Rs 4,245 crore.In spite of the Covid-19 crisis and the lockdowns, the due-diligence by Saudi Aramco for the planned investment in the O2C business is on track as both the parties are committed and actively engaged, the company said.Global oil demand in CY2020 is expected to fall by 9.3 million barrels/day YoY, the lowest level in the last eight years. As a result, global refining utilization and economics are likely to get impacted in the near term.The pandemic outbreak impacted the petrochemical segment during the quarter with demand slowdown in most end-use markets including consumer discretionary and packaging demand.While RIL maintained near-normal utilization at all major facilities, gradual resumption of economic activity in the coming months is expected to aid demand recovery for fuels and petrochemical products, it said in a release.Non-grocery retail business was impacted by the nationwide lockdown.Reliance Retail operates 11,784 stores covering 28.7 million square feet with over 1,500 stores opened in the year and a record 30 per cent retail space added. The company’s segment revenue for the March quarter grew by 4.2 per cent YoY to Rs 38,211 crore, while EBITDA for the quarter grew by 32.9 per cent YoY to Rs 2,556 crore.“Overall, the year has been a growth year with March being a tepid month due to the Covid-19 lockdown impact,” RIL said in a release.Gross refining margins (GRMs) for March quarter was at $8.9/bbl, outperforming Singapore complex margins by $7.7/bbl. March quarter revenue from the refining and marketing segment declined by 3.4 per cent YoY to Rs 84,854 crore while segment EBIT increased by 28.2 per cent YoY to Rs 5,706 crore with higher throughput and better GRMs.March quarter revenue from the petrochemicals segment decreased by 24.1 per cent YoY to Rs 32,206 crore due to lower price realizations along with disruptions in local and regional markets.The revenue for the oil & gas segment for the quarter ended March decreased by 41.5 per cent YoY to Rs 625 crore. The segment performance continued to be impacted by low volumes and declining prices.Network18 Media & Investments reported 4QFY20 consolidated revenue of Rs 1,464 crore, an increase of 18.9 per cent YoY.RIL’s outstanding debt as on March 31 was Rs 3,36,294 crore. Outstanding debt was at Rs 3,06,851 crore as of December 31, 2019 and Rs 2,87,505 crore on March 31, 2019.Cash and cash equivalents as on March 31, were at Rs 1,75,259 crore. | telco reported a 38.73 per cent year-on-year (YoY) fall in consolidated net profit. analysts had projected the number at Rs 10,500 crore. telco said it had witnessed strong investor interest in Jio platforms. it will receive Rs 43,574 crore from facebook for a 9.99 per cent stake. it will also receive Rs 43,574 crore from a 9.99 per cent stake in jio platforms. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/tcs-shares-rise-afterdeal-with-qnb-group/articleshow/71296268.cms | Tata Consultancy Services announced that QNB Group , a large financial institution in the Middle East and Africa will be using TCS BaNCS Global Securities Platform (GSP) to support the digital transformation of its capital markets operations.Shares of TCS rose after the deal announcement, closing 2.13 per cent higher at Rs 2087.80 on the BSE on Wednesday.According to a press note, QNB Group is present in more than 31 countries through subsidiaries and associate companies and wants to further expand its international operations with the help of AI and Machine Learning technologies. The platform is intended to also support QNB’s digital transformation and future innovation plans.Adel Al-Malki, General Manager - QNB Group Information Technology , said: “We have been working with TCS since 2013, and the firm has supported our global expansion efforts through advanced IT solutions. TCS’ services have enabled multi-market, multi-currency, straight-through settlements and corporate actions processing at depositories outside Qatar, while also strengthening our leading local presence.”The platform, according to TCS minimizes manual intervention and makes post-trade securities operations error-proof and reduces risks.R Vivekanand, Co-Head, TCS Financial Solutions, said “The TCS BaNCS Global Securities Platform offers QNB a rich set of features to meet future performance needs, and rapid growth in channels, users, markets and applications.” | the deal was announced by the firm's global office in london. the platform is intended to support QNB's digital transformation. the firm is present in more than 31 countries through subsidiaries and associate companies. the platform minimizes manual intervention and makes post-trade securities operations error-proof and reduces risks. the firm is also aiming to further expand its international operations with the help of AI and machine learning technologies. | Positive |
http://www.moneycontrol.com/news/business/stocks/hold-cipla-target-of-rs-653-geojit-2517047.html | live bse live
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Geojit's research report on Cipla
Cipla is a leading global pharmaceutical company with 1,500 plus products across various therapeutic categories. It has presence in over 80 countries. Cipla reported ~7% YoY revenue growth in Q3FY18 led by improvement in the domestic market post GST and better performance of South Africa, Europe and API businesses. India formulation business grew 15% YoY in Q3FY18 due to re-stocking post GST implementation and launch of new in-licensed products. US revenues declined ~2% YoY impacted by continued pricing pressure and lower contribution from limited competition drug launches during the quarter. EBITDA margin rose 230bps YoY in Q3FY18 led by gross margin improvement on back of better geography and product mix and cost control measures. We lower our revenue estimates by 3%/2%/3% for FY18/19/20E due to decline in Emerging markets and continued competitive & pricing pressure in the US.
Outlook
Hence, we recommend ‘Hold’ rating on the stock with a revised TP of Rs 653 based on 20.5x FY20E EPS.
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Read More | Cipla reported 7% YoY revenue growth in Q3FY18 led by improvement in the domestic market post GST and better performance of South Africa, Europe and API businesses. India formulation business grew 15% YoY in Q3FY18 due to re-stocking post GST implementation and launch of new in-licensed products. us revenues declined 2% YoY impacted by continued pricing pressure and lower contribution from limited competition drug launches during the quarter. | Positive |
http://www.financialexpress.com/world-news/bangladesh-lifts-ban-on-exports-of-its-national-fish-hilsa/1006855/ | Bangladesh today lifted a 2012 ban on the export of its national fish hilsa, whose key markets include India, to check its smuggling and tap into the growing global demand for the popular but scarce food species. The country’s new fisheries and livestock minister, Narayon Chandra Chanda, announced the decision here, just a day after he assumed charge. Bangladesh’s Ministry of Commerce had banned the export of hilsa on August 1, 2012 due to its low availability. Chanda said the ban appeared “largely futile” and so “we will export hilsa in official channel to stop its smuggling”. “Our hilsa production has (also) increased and there is demand in the international market so we want to move towards exports,” Chanda told journalists. Bangladesh had launched a frantic campaign to protect hilsa, its most precious but dwindling aqua resource, several years ago. It had eventually imposed the ban for an indefinite period in 2012, even risking its ties with neighbouring India and several oil-rich Middle Eastern nations.
Chanda said despite the ban, hilsa fish was being smuggled out of the country and “as a result the government is losing out in taxes (and) if we allow exports it will open the way for legal trade and diminish smuggling significantly”. He said the government, however, will continue its conservation campaign particularly to protect the female hilsa. According to official statistics, hilsa makes up nearly 11 per cent of total fish produced in Bangladesh and its trade contribution to the country’s gross domestic product stands at one per cent.
Bangladesh’s water bodies produce nearly 75 per cent of world’s hilsa yield, while the country and last year the patent office named hilsa a “geographical indication product”. Hilsa is globally reputed for its unique taste but apart from the fish itself, its roe or egg tastes as good as, if not better than, caviar, one of the world’s most cherished dishes. Bangladeshi people are also known for their skill to cook hilsa in more than 50 ways with mustard, curd, brinjal, green banana, baking in young plantain leaves, smoke, fry, and so on.
According to literature on fish resources, the roaming ground of hilsa ranges from Persian Gulf to Gulf of China through Bay of Bengal but 75 per cent of it are produced in Bangladesh. The species is regarded the best in terms of taste. Basically a sea-water fish, hilsa makes its way up fresh water rivers travelling up to 1300-km during mating season, a feature that gives it the repute of being the most mobile fish species having its roaming ground both in sea and fresh water. | ban on export of hilsa lifted to tap into growing global demand for the popular but scarce food species. hilsa makes up nearly 11 per cent of total fish produced in Bangladesh and its trade contribution to the country’s gross domestic product stands at one per cent. hilsa is globally reputed for its unique taste but apart from the fish itself, its roe or egg tastes as good as, if not better than, caviar. | Positive |
https://economictimes.indiatimes.com/news/economy/finance/final-tranche-of-stimulus-changes-in-ibc-funding-push-for-nrega/articleshow/75795988.cms | New Delhi: Finance minister Nirmala Sitharaman said the government will amend the Insolvency and Bankruptcy Code ( IBC ) to exclude debt taken during the Covid-19 outbreak and suspend any fresh resolution filings for up to one year.The government will provide an additional ₹40,000 crore allocation for the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) for FY21, allow states to borrow up to 5% of gross state domestic product (GSDP) from 3% now and privatise public sector enterprises (PSEs) in non-strategic sectors under a new policy for such units.“In order to prove the resolve of Atmanirbhar Bharat (self-reliant India), land, labour, liquidity and laws have all been emphasised in (the) package,” Sitharaman said on Sunday, unveiling the fifth and the last instalment of the ₹20 lakh crore programme aimed at reviving an economy swamped by the pandemic and the ensuing lockdown.The total outlay, including liquidity measures by the government, amounts to ₹11.02 lakh crore, excluding the ₹1.92 lakh crore package announced in April. Along with that and support from the Reserve Bank of India (RBI) to the tune of ₹8.01 lakh crore, the aggregate is ₹20.97 lakh crore.“The crisis and the challenge is an opportunity to build a self-reliant India,” Sitharaman said.“Only about 10% of this stimulus — which amounts to 1.01% of FY21 GDP— can be traced as direct additional budgetary cost to the central exchequer,” said DK Srivastava, chief policy advisor, EY India.“Nearly 5% of the stimulus relates to already budgeted expenditures,” Srivastava said.Industry said the package was progressive and will boost the rural economy and create jobs besides boosting healthcare facilities across the country.“The announcements today will catapult the reforms process to a new level,” said Confederation of Indian Industry (CII) director general Chandrajit Banerjee. “The quantum jump in MGNREGA will add to relief for workers and also sustain demand for the economy and is a very positive step in the current situation.”Debt related to Covid-19 will be excluded from insolvency proceedings and not be counted as defaults. No fresh insolvency proceedings will be initiated against companies for a year, instead of six months earlier.A special insolvency framework will be notified for micro, small and medium enterprises (MSMEs). The threshold for initiating insolvency proceedings against them has been raised to Rs 1 crore from existing limit of Rs 1 lakh. “We will go through an ordinance to put this into effect,” Sitharaman said.She said technical and procedural defaults will be decriminalised. A majority of sections on compoundable offences will be moved to the internal adjudication mechanism in order to decongest the system.“Amendments, again through ordinance, will de-clog criminal courts and NCLT (National Company Law Tribunal),” the minister said. “This will immediately benefit companies.”The listing of nonconvertible debentures (NCDs) won’t mean listing of the company that issues them on an exchange, which will promote ease of doing business, she said. Indian public companies will be allowed to directly list in foreign jurisdictions, she added.The government will draft a new policy for public sector units (PSUs). This will entail the privatisation of all PSUs in non-strategic sectors while allowing only four to function in strategic ones, Sitharaman said.“If there are more, they will be merged or privatised or brought under a holding company,” she said. “We need a coherent policy because sometimes you open up some sectors in piecemeal. Now we shall define the areas... where their presence will be impactfully felt.”India has 257 central public sector enterprises (CPSEs), of which 184 make a profit, according to the Public Sector Enterprise Survey 2018-19, which is the latest available.The borrowing limit for states will be raised to 5% of GSDP from 3%, which will add up to an extra Rs 4.28 lakh crore. “Finance ministers of various states have requested us to raise the cap, so we have agreed to this demand,” Sitharaman said.The Centre will extend the borrowing limit of states from 3% to 3.5% unconditionally. Borrowing by states beyond that will be in tranches, which will be linked to reforms in food distribution, power distribution, job creation and health and sanitation sectors.Biocon chairperson Kiran Mazumdar-Shaw tweeted that the programme may not help stimulate demand. “Most disappointed at lack of bold measures in stimulus packages — don’t think demand will be created n consequently economic activity will be stifled,” she tweeted. “Rs 20 lakh crore was a huge amount n it was meant to stimulate economic revival n growth.”Grassroots investment will be stepped up through the establishment of health and wellness centres, the minister said. All districts will have infectious disease hospitals. Public health diagnostic and testing laboratories will be set up at all block levels. “We need to be ready at the district and block level to deal with any pandemic,” Sitharaman said.The government is introducing a technology driven education strategy by launching PM eVidya for enabling multi-mode, online education. This will include ‘one nation, one digital platform’ under the Diksha program for eeducation and dedicated TV channels will be introduced for each class from 1 to 12. | government will amend the insolvency and bankruptcy code ( IBC ) to exclude debt taken during the Covid-19 outbreak. it will also allow states to borrow up to 5% of GSDP from 3% now. the package is aimed at reviving an economy swamped by the pandemic and the ensuing lockdown. | Positive |
https://www.financialexpress.com/industry/banking-finance/sbi-sees-around-rs-60000-crore-repayment-getting-deferred-says-chairman-rajnish-kumar/1911490/ | State Bank of India, which controls nearly a quarter of the banking system, on Friday said it sees Rs 50,000 to 60,000 crore of its repayment getting deferred following the three-month moratorium on term loans announced by the Reserve Bank of India.
The RBI move is aimed at providing borrowers some relief to borrowers, who are affected by the impact of lockdown on account of COVID-19.
“Our term loan book is fairly large and I think Rs 2-2.5 trillion gets paid every year, so for three months it would be Rs 50,000-60,000 crore,” the bank’s chairman Rajnish Kumar told reporters.
In the seventh bi-monthly monetary policy announced today, the RBI allowed a repayment moratorium for three months on all term loans outstanding as on March 1, 2020.
It would be applicable for all commercial banks, including regional rural banks, small finance banks and local area banks, co-operative banks, All-India Financial Institutions, and NBFCs, including housing finance companies and micro-finance institutions.
“With this EMIs or the term loan instalments will get shifted by three months,” he said.
The RBI also announced a deferment of three months on payment of interest in respect of working capital loans sanctioned in the form of cash credit or overdraft.
“It gives banks flexibility to reassess the working capital limit, to reduce margins if they require.
“I have never seen such a situation before because I have never witnessed the entire country under a lockdown for 21 days. Obviously, when we are in such an unusual situation, the response also has to be unusual and unorthodox,” Kumar said.
The outbreak of coronavirus has impacted almost 75 per cent of the sectors and the measures announced by the RBI and the government will benefit everyone.
“From IBA side, we are thankful to the RBI for announcing such measures which was necessary and it will help in kick-starting the economy as soon as the lockdown period is over,” he said.
He also clarified that none of the banks are closing down or reducing the number of branches.
“All bank branches are functional. There is a close coordination with the local authorities and wherever there is a situation, for example, a branch has been quarantined because of the district collector’s order, then that is a different situation,” Kumar said.
He also applauded the effort of employees of all the banks who are providing essential services to their customers. | the move is aimed at providing borrowers some relief to borrowers affected by the impact of lockdown on account of COVID-19. RBI allowed a repayment moratorium for three months on all term loans outstanding as on march 1, 2020. the outbreak of coronavirus has impacted almost 75 per cent of the sectors and the measures announced by the RBI and the government will benefit everyone. | Positive |
https://www.financialexpress.com/money/hdfc-home-loan-gets-cheaper-lending-rate-cut-by-20-bps/1989406/ | Leading mortgage lender HDFC on Friday slashed its lending rate by 20 basis points amid a gradual decline in cost of borrowing across the system.
The move is in line with rate cuts by lenders like State Bank of India.
“HDFC reduces its retail prime lending rate (RPLR) on housing loans, on which its adjustable rate home loans (ARHL) are benchmarked, by 20 basis points (bps), with effect from June 12, 2020,” the company said in a statement.
The change will benefit all existing HDFC retail home loan and non-home loan customers, it said.
New rates will now range between 7.65-7.95 per cent for existing salaried home loan customers.
Rates across the banking system have headed south in the last few months, as the Reserve Bank of India (RBI) and the government work in tandem to propel the slowing economy.
The RBI last month cut the policy rate by 40 basis points to a historical low of 4 per cent to spur growth amid the COVID-19 crisis. | the move is in line with rate cuts by lenders like State Bank of India. the change will benefit all existing HDFC retail home loan and non-home loan customers. new rates will now range between 7.65-7.95 per cent for existing salaried home loan customers. RBI last month cut the policy rate by 40 basis points to a historical low of 4 per cent. | Positive |
https://www.moneycontrol.com/news/india/india-registers-10-growth-in-containerised-trade-in-q3-2018-maersk-3247781.html | The Mazagon Dock Shipbuilders Rs 444-crore public issue to list on BSE, NSE as on 12 October 2020. It witnessed an overwhelming response from investors as it was subscribed to 157.4 times, which is the top response in 2020 so far.
India's containerised trade with the world grew by 10 percent year-on-year in the July-September quarter, a report by global container shipping company Maersk said on December 3.
The demand for India-made goods such as vehicles and mechanical appliances as well as refrigerated cargo such as onions, meat, seafood, and pharmaceuticals have driven exports, the company said.
"Increasing competitiveness of Indian exports, coupled with improved demand in various destination countries, has propelled exports to grow at 10 percent year-on-year.... Simultaneously, imports have risen 9 percent year-on-year, largely dominated by a heavy inflow of paper, metal and white goods," the report said.
Overall, the containerised market has displayed strength, with far less fluctuation compared to the previous year.
Commenting on the healthy containerised growth, Steve Felder, Managing Director for Maersk Line – South Asia said, "The upward movement in global commodity prices, depreciation of the Indian rupee and recent major shipping-logistics reforms such as liberalised cabotage policy and Direct Port Delivery are instrumental in supporting the export-import trade between India and global markets."
With fast growing trade figures that are significantly higher than the estimated global containerised demand growth, coupled with strategic competitive pricing, India is emerging as a favourable trade destination for both advanced and emerging markets, he said.
The US, the United Arab Emirates and Nigeria have become significant export destinations for exporters from West India, the report said, adding while exports from West India witnessed a contraction of 15 percent in the third quarter of 2017, exports increased by 10 percent year-on-year in the same quarter of 2018 on the back of high volume exports of India-made automobiles and machinery.
Rising demand for chemicals, metals, machinery and white goods have also been driving import growth at 9 percent year-on-year for East India, it said.
Countries like the US, Canada, the UK and South Korea have been the leading import origins for this growing region.
In terms of commodity trade, the high demand for pharmaceutical, vehicles, metals and sea-food have driven the import-export trade in international markets.
The report said the Indian pharma sector witnessed high export growth to North American nations in July-September 2018, doubling in volume.
"Strong demand from regions of Latin America, Africa and surrounding countries like Nepal, Bangladesh and Sri Lanka have pushed exports of India-made vehicles to grow 36 percent year-on-year. Metal imports have increased 33 percent year-on-year, on the back of metal scrap driving this growth into the North and West regions of India," it said. | india's containerised trade with the world grew by 10 percent year-on-year in the July-September quarter. rising demand for vehicles and mechanical appliances has driven exports. rising demand for chemicals, metals, machinery and white goods has also driven import growth. the containerised market has displayed strength, with far less fluctuation compared to the previous year. | Positive |
https://www.financialexpress.com/industry/focus-on-know-how-data-and-information-patrick-kilbride-senior-v-p-gipc/1456758/ | Recently, the US Chamber of Commerce launched an innovation initiative in India that will explore how policymakers can harness innovation capital in India and around the globe. Called the Fair Value for Innovation, it was launched by the US Chamber’s Global Innovation Policy Center (GIPC) at the Raisina Dialogue in Delhi, where GIPC senior vice-president Patrick Kilbride said: “The promise of India’s innovation ecosystem is real, and the US industry has a stake in it.” In an interview with FE’s Vikram Chaudhary, he added that all countries, including India, need to master intellectual property rights (IPR) to be ready for tomorrow’s intangible economy. Excerpts:
The word ‘jugaad’ has entered the global language, but do you see jugaad-style frugal innovation happening in the West?
One major MNC ran an ad campaign on the slogan: “We don’t make a lot of the products you buy; we make a lot of the products you buy better.” Not every innovation represents a quantum leap forward. Incremental innovation is indispensable to technological progress; it deserves to be respected and protected.
Can there be situations where copyrights or patents arrest the popularity of an innovation?
Jugaad’s label as frugal innovation tells the whole story: Where property rights in innovation are difficult to secure or enforce, investments in innovation will be commensurately small. Frugal innovations are a great place to start, to build a culture of creativity and efficiency. Making the leap from frugal to transformative innovation requires a system of property rights that enables significant, risky, long-term investments.
Why do governments, at times, resort to price controls on innovations?
Price controls are politically-corrupting and economically-destructive; they are anathema to private investment. Countries that utilise price controls have less access to a range of innovative products. If every country resorted to price controls, it would have a chilling effect on global investment in innovation.
How can the Indian government help the cause of aspiring student-innovators?
India has made a significant political investment in its National IPR Policy and appears to be following through on that commitment. Through the work of DIPP and CIPAM and other stakeholders, we see an effort to make IP laws work not just for foreign investors, but also for domestic innovators by making it easier to register patents and trademarks.
Will the Fourth Industrial Revolution affect innovation?
Soon we will look at today’s IPR as the addition and subtraction of the knowledge economy. The industrial assets of tomorrow’s economy are know-how, information and data—intangible assets. Making a market for these assets will be far more complicated than simply protecting patents, copyrights and trademarks, more like algebra and calculus. An economy needs to walk before it can run, and all countries need to master IPR to be ready for tomorrow’s intangible economy. | the US Chamber of Commerce launched an innovation initiative in india. it will explore how policymakers can harness innovation capital in India and around the globe. the initiative was launched by the global innovation policy center (GIPC). india has made a significant political investment in its National IPR Policy. it appears to be following through on that commitment. the government is urging the government to invest in innovation. | Positive |
https://www.moneycontrol.com/news/business/markets/sbi-life-insurance-could-turn-out-to-be-a-multibagger-in-the-next-5-years-5109161.html | live bse live
nse live Volume Todays L/H More ×
I would recommend investors accumulate SBI Life Insurance in this downtrend for better than market returns in the next 5 years, VK Sharma, Head PCG & Capital Markets Strategy, HDFC Securities, said in an interview with Moneycontrol’s Kshitij Anand.
edited excerpts:
Q) Another volatile week for Indian markets – with 8,055 as a base. What is causing panic in the markets?
A) Rising numbers of infections in the US, the fall of the US Indices, fear arising out of the super spreader event of Nizamuddin, is making the markets sulk.
We have handled the virus issue better than the US, UK or any other European countries and would have been celebrating the fall in the new infections after April 6 but that was not to be. Our vigil has now been extended.
Q) India’s Mcap-to-GDP ratio has now slipped below 2008 financial crisis levels – do you think the bottom is near? What is a good multibagger opportunity for the next 5 years if someone wants to invests now?
A) This is very interesting.
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
Yes, the market cap to GDP ratio today is around 0.53, which matches that of December end 2008. While the Nifty, in the current bear market has fallen 39.57 percent to its low, in 2008 it had fallen as much as 61 percent.
I would recommend investors accumulate SBI Life Insurance in this downtrend for better than market returns in the next 5 years
Q. What are your views on the month of April? Will we be able to see some green on the screen? Earnings will be delayed what are other data points to look for?
A) The results would obviously be delayed and will not be good.
The only thing going for the markets is that the positions are very light in the April series. In fact, we have started the April series with an Open Interest (OI) of just 240 crore shares in stock futures.
This is the lowest since October 2015. The number is 54 percent lower than the all-time high seen in February 2018 and 43 percent lower than the last series.
In fact, the Nifty50 has fallen in all the past four series, something that only happened way back in 2002. But when that happened, the 5th series closed in positive.
The main data to be diced and sliced are the new infection numbers. As and when we see a plateauing out of those numbers, markets should bounce back.
Q. What is your take on the auto sales numbers-do you think the pain is likely to continue in the sectors, and it is best to stay away?
A) The auto sector numbers were worse than expected, even counting the lockdown.
The sector has had no reprieve from the courts on liquidating their BS-IV inventory. They will get only 10 days after the lockdown is relaxed to sell their ware.
Q) Experts have suggested sticking with cash-rich companies. Do you agree with the statement, if yes, how will it help in dodging the COVID-19 bullet?
A) Cash-rich companies are great companies to back in uncertain times. As they do not carry the baggage of the interest on the debt, they will fare better in tough times.
Usually, they are available at a higher end of the PE spectrum but the current downturn has lowered all boats. So it’s a good time.
Q) What should be the trading strategy of the coming week?
A) For the coming week, unless the tide turns in the infection numbers, one should stick to what is working and that is Pharma. There are trading plays possible in the sector.
Q) What are your views on the financial space? Does it look like the smart money is moving from financials towards defensives' names?
A) Yes, the money is moving to Pharma and FMCG sector. Pharma stocks, which had lost the tag of "safe" stocks, have partially got it back, courtesy of the virus.
While the finance boys have been hit badly, but the better-managed ones will emerge stronger after the turmoil settles.
So, there is still a lot of time for these stocks to turnaround. Top banks with low NPAs and good margins should be picked again when the tide turns.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | a vaccine works by mimicking a natural infection. a vaccine not only protects people from future COVID-19 infection, but also helps build herd immunity to put an end to the pandemic. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. | Positive |
https://www.financialexpress.com/market/sensex-rises-over-100-points-on-robust-gdp-data-strong-rupee/1189386/ | Mumbai, Jun 1 (PTI) The BSE Sensex advanced about 106 points in early session today, maintaining its positive form for the second day following robust growth data for the March quarter. Investors creating new positions at the beginning of the June futures and options (F&O) series also lifted the key indices. The 30-share index, which had rallied 416.27 points in the previous session, was trading higher by 105.57 points, or 0.30 per cent, at 35,427.95. Sectoral indices, led by metal, auto, teck, IT, consumer durables and capital goods, were trading in the positive zone with gains of up to 1.13 per cent.
The NSE Nifty also went up by 25.40 points, or 0.24 per cent, to 10,761.55. Official data released after market hours yesterday showed that India’s January-March 2018 GDP growth soared to a seven-quarter high of 7.7 per cent, spurred by robust performance of manufacturing, construction and service sectors, helping it retain the tag of the fastest growing major economy. The rupee appreciating against the dollar also fuelled the uptrend, brokers said. Auto stocks were in demand on expectations of encouraging sales data for the May month, to be released today.
Big gainers included ICICI Bank, Bajaj Auto, Maruti Suzuki, Sun Pharma, L&T, Tata Motors, Hero MotoCorp, Wipro, HDFC Ltd, TCS, Infosys, HUL and RIL, climbing up to 3.64 per cent. However, other Asian markets were mixed on fresh trade war fears after the Trump administration’s tariffs on imports from key allies. Hong Kong’s Hang Seng was up 0.26 per cent and Japan’s Nikkei rose 0.24 per cent in their early deals while Shanghai Composite index fell 0.33 per cent. The US Dow Jones Industrial Average ended 1.02 per cent lower in yesterday’s trade. | the 30-share index, which had rallied 416.27 points in the previous session, was trading higher by 105.57 points, or 0.30 per cent, at 35,427.95. sectoral indices, led by metal, auto, teck, IT, consumer durables and capital goods, were trading in the positive zone with gains of up to 1.13 per cent. | Positive |
https://www.businesstoday.in/current/economy-politics/chinese-firm-unveils-plans-to-provide-free-worldwide-wifi-with-272-satellites/story/295835.html | A Chinese internet technology firm is planning to launch a constellation of 272 satellites by 2026 with an aim to provide free WiFi service worldwide and rival global tech giants like Google and SpaceX, according to a media report Thursday.
LinkSure Network, founded in Shanghai in 2013, markets itself as a global innovative mobile internet company specialising in free internet access, content and location-based services on its official website.
It unveiled its first satellite in the constellation plan on Tuesday.
"The satellite will be launched from Jiuquan Satellite Launch Centre in Northwest China's Gansu province next year, and by 2020 there will be 10 satellites in space," the state-run China Daily reported Thursday. The constellation will have 272 satellites by 2026.
People could use their mobile phones to search for internet services provided by the constellation and browse the internet, even in regions where telecom networks do not cover, the report said.
Wang Jingying, CEO of LinkSure Network, said the company will invest $431.4 million into the plan. She expressed hope that through different scenarios, applications and modes, the company could earn in the future.
According to the data from the United Nations, by the end of 2017, there were still 3.9 billion people not connected to the internet.
Because of the diversity and complexity of geomorphology, some infrastructure facilities of telecom networks cannot be installed at some places, and therefore, satellite constellations might be an alternative.
Currently, many companies, including Google, SpaceX, OneWeb and Telesat, have already launched plans to use satellites to provide free internet access.
Also China is building the BeiDou Navigation Satellite System (BDS), stated to be rival to the US' Global Positioning System (GPS). It will be the fourth global satellite navigation system after the US GPS system, Russia's GLONASS and the European Union's Galileo.
India too is building its navigational system called the Indian Regional Navigation Satellite System (IRNSS), with an operational name of NAVIC. | linkSure Network will launch 272 satellites by 2026. the company wants to provide free WiFi service worldwide. the satellites will rival global tech giants like Google and SpaceX. the company will invest $431.4 million into the plan. 3.9 billion people are not connected to the internet by the end of 2017. a satellite constellation will be launched from china next year. | Positive |
https://www.financialexpress.com/money/important-things-to-look-at-while-buying-health-insurance-for-your-parents/2086363/ | It is imperative for us to get covered by health insurance, especially during this time. More importantly, if your elderly parents are not covered under a policy, it is time to get them insured.
Rakesh Goyal, Director of Probus Insurance, says, “Having a health cover ensures that your parents get the finest treatment during medical emergencies without the need of financial worries. Considering the age factor, your parents are more vulnerable to various health issues or illnesses, and getting a high insured plan for them can make the treatment process relaxing without any financial constraints.”
Most salaried people usually depend on their employer-provided health plans, and do not get an additional health plan. Hence, after retirement, these people are left without a separate health cover. But it is important for the retired and the senior citizens to get covered by a policy, especially because they are the ones with high chances of getting a host of health problems. Additionally, with the steep rise in healthcare costs, without a health insurance policy, it could leave a hole in your pocket.
While buying a policy, note that if your parents have any kind of pre-existing diseases, then those diseases would also be covered after a specific period (waiting period). This would help you to save on the heavy expenses on the treatment of these pre-existing diseases, post the waiting period. The waiting period varies from insurer to insurer.
Also, there are certain health insurance plans that not just cover the hospitalization charges but also cover various other expenses such as medicines, tests, periodic health check-ups, ambulance costs, day-care surgeries, etc. This coverage definitely adds some ease to your pocket.
You also enjoy tax benefits wherein the health insurance premium that you pay for your parents is qualified for deduction under Section 80D.
Things to consider while buying a policy
Factors that one must consider while looking for a health insurance policy is selecting the right insurance amount, checking the network hospitals, seeing if the coverage is adequate as per the age of the family members, understanding the waiting period (if any).
Goyal adds, “One must also research on the claim settlement history of the insurer (from where the policy is to be purchased). Also, check if the plan comes with other additional factors such as maternity benefits, free medical check-ups, No Claim Bonus (NCB), co-payment option, etc.”
Points to consider while choosing the right policy: | elderly parents are more vulnerable to various health issues or illnesses. without a health insurance policy, it could leave a hole in your pocket. some plans cover hospitalization charges, tests, ambulance costs, day-care surgeries. if your parents have any kind of pre-existing diseases, those would also be covered. a policy can also cover maternity benefits, free medical check-ups, no claim bonus. | Positive |
https://economictimes.indiatimes.com/news/economy/foreign-trade/us-industry-body-to-open-bihar-chapter-to-facilitate-investments/articleshow/67190944.cms | In a first of its kind, a top American industry advocacy group will open its Bihar chapter to become partners in the development and facilitation of investments in the state.The US India Strategic and Partnership Forum (USISPF), whose membership comprises of Fortune 500 companies, announced its decision following a industry roundtable with the visiting Bihar's Deputy Chief Minister Sushil Kumar Modi Modi, along with a high powered state delegation comprising Health Minister Mangal Pandey and other senior officials, is currently on a visit to the US as part of the Bill & Melinda Gates Foundation's funded Bihar Technical Support Program.Hosted by the USISPF, the roundtable on Wednesday was attended by representatives from some of the top American companies like Amazon, FMC and Qualcomm , whose officials expressed their keen interest in becoming a partner in Bihar's developmental journey.The business leaders were apprised of the double-digit growth Bihar has achieved over the last decade and the vast investment opportunity it offers in sectors like agri-technology, food processing, healthcare, pharmaceuticals, energy and skill development among others.Encouraged by the interest of US industries in the state, Gaurav Verma, chief operating officer of USISPF, announced to open a Bihar Chapter under the Strategic Partnership Forum to enable development of partnerships and facilitation of investments in an organised manner."The first of its kind initiative by this American industry advocacy group is aimed at establishing a 'true partnership' between Bihar, which is the fastest growing Indian State and the business and industry leaders in the United States, which is the world's largest economy," Verma said.During the roundtable several business leaders showed interest to invest in Bihar considering wide opportunities.Shawn Whitman from Agri-chem firm FMC (Food Machinery Corporation) expressed interest in exploring investment opportunities in agriculture technology and making Bihar their base for Eastern India, a media release said.Similarly, Ron Somers representing the pharmaceutical innovator Gilead Sciences expressed interest in volunteer licensing to enable availability of top-line drugs for treating illnesses like Hepatitis, HIV and Kala-azar at low and affordable prices.Other business groups expressed interest to invest in the arenas of technology, higher education among others.David Roth from Amazon explained how organised retail is growing in Bihar and hoped to create more jobs by setting up logistics and distribution chains in the state.The delegation from Bihar also had a meeting with World Bank officials in Washington DC, seeking help to address its major socio-economic challenges, in addition to improving its infrastructure. | the US India Strategic and Partnership Forum (USISPF) will open its Bihar chapter. the group is aimed at establishing a 'true partnership' between the state and the business leaders in the united states. the group is currently on a visit to the us as part of the bill & melinda gates foundation's funded Bihar Technical Support Program. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/third-tranche-of-economic-stimulus-will-help-rural-economy-boost-farmers-income-pm-modi/articleshow/75765701.cms | New Delhi: Prime Minister Narendra Modi on Friday said the third tranche of economic stimulus announced by his government will help rural economy and boost farmers' income."I welcome today's measures announced by FM @nsitharaman," he wrote on Twitter.He said the measures will help the rural economy, hardworking farmers, fishermen, the animal husbandry and dairy sectors.In the third tranche of an overall package of Rs 20 lakh crore to deal with the economic fallout of the COVID-19 pandemic, Finance Minister Nirmala Sitharaman on Friday announced a slew of measures for agriculture sector, including a Rs 1.63 lakh crore outlay, and amending the stringent Essential Commodities Act to remove cereals, edible oil, oilseeds, pulses, onions and potato from its purview.Modi also said he specially welcomes reform initiatives in agriculture, which will boost income of farmers.Earlier this week, Prime Minister Modi announced a cumulative package of Rs 20 lakh crore, nearly 10 per cent of GDP, to provide relief to various segments of the economy battered by the nationwide lockdown in the wake of the coronavirus pandemic.It includes a Rs 1.7 lakh crore package, including free foodgrains and cash to poor for three months announced in March, and Rs 5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).Of the remaining amount, the government in two tranches over the last two days announced a cumulative package of Rs 9.1 lakh crore. It was largely credit lines to smaller firms, concessional credit to farmers and support to shadow banks and electricity distributors. | finance minister announces slew of measures for agriculture sector. he also amends essential commodities act to remove cereals, edible oil, oilseeds, pulses. prime minister says measures will help rural economy and boost farmers' income. he says he particularly welcomes reform initiatives in agriculture. Earlier this week, he announced a cumulative package of Rs 20 lakh crore. | Positive |
https://economictimes.indiatimes.com/small-biz/sme-sector/textiles-could-be-our-saviour-amid-the-pandemic-welspuns-dipali-goenka/articleshow/79362938.cms | Home textiles major Welspun India saw an increasing thrust on antiviral and antimicrobial products when the Covid scare gripped the country. In a freewheeling chat with ET Digital, Dipali Goenka, CEO and joint Managing Director, Welspun India talks about how the pandemic ushered in significant changes for the textile industry and why antiviral is more than just a buzzword. Edited excerpts:When the lockdown happened, our immediate problem and concern was that since our factories were shut, there was not a drop of revenue. What came to mind were our people, several of whom are directly or indirectly dependent on us. Around 20,000 people and hundred thousand people, directly or indirectly, depend on us.However, we saw to it that communities interdependent on Welspun are flourishing and safe. We started manufacturing masks because we have a technical textile vertical and started distributing it in our communities. One month was completely a lockdown for us. But as we moved ahead, the markets opened up.We took care of our people’s safety. We created protocols with safety, social distancing, and got our protocols audited by one of the big fours. And that's the time our journey began and has been very interesting so far.It wasn't a part of our core portfolio, but we have a vertical - technical textiles - which came into complete forefront of what we were doing. So we gradually looked at the relevance of the mask coveralls, medical coveralls, disposable linen like towels and sheets, and that's where we started.And then we forayed into creating it as a vertical for health and hygiene. Our labs today are BI certified . We have a clean environment to make our health and hygiene goods. Even the vendors are quality checked for the kind of raw material used.We created antimicrobial towels, sheets and also carpets. When we talk about antimicrobials, we have this woven into our products. Like if you talk about charcoal, bamboo, zinc, copper, silver, they were woven into our textile products and we created antiviral home linen.Apart from the antiviral products, masks and other goods from technical textile, we also looked at innovations related to sleep. Sleep is becoming a very important aspect.When we talk about the next generation of textiles, interestingly, health and wellness is going to be the prime. There will be a shift to value and extensions. So many people are going to find value in essential goods, whether it is the food, what they sleep in, and even the clothes they wear.Apart from that, the health and care economy will become the key, whether it's product, food, FMCG and the home space. 70% of the world population will not go back to work, even when the vaccine comes in.Apart from health and hygiene, an interesting thing will be sustainability. One out of every six individuals globally is connected directly or indirectly to home textiles or apparel. And it is the second biggest polluter in the. Textile corporates have an enormous responsibility towards sustainability.They definitely work in inhibiting the micro-organisms. And we took a little time to launch these things, because we wanted it to be tested. And they definitely are relevant. Also, importantly, I think it's not just about these finishes, I think it also has to go inherently into the products. Whatever we have done - that has been tested and tried.I would take safety as something which will become important for all of us. So when you talk about safety, it is directly related to health, hygiene and wellness.Even sleep will become very important because we all know how much time one is online and it definitely plays with our mind. Looking at the schools working online, everyone working online, we need that kind of mental space now. So what is that all about? It is all about sleep. So textiles which are very comfortable and sleep conducive also become important.Very interesting question. Seven months back, when the factories were completely shut down, we were worried. Today, as the world opened up, the countries globally opened up, I think suddenly there is a surge for home textiles. Our factories are chugging along and working at full throttle. So we see that happening in terms of demand. The peak today could be a temporary blip, but the demand is here to stay because people will work from home. So needs for home will improve.As far as ‘vocal for local’ and the textile industry is concerned, we are dependent and interdependent on MSMEs because that forms the entire supply chain. MSMEs form the bedrock and definitely so for textiles.We have to look at them [MSMEs] growing because it is going to be the ecosystem that you create. So definitely this is one important part of what we see as textile manufacturers.India is becoming a very important centre for manufacturing. And you will see in the next couple of years, 90 million non-farming jobs will be created and they need to be created for India to reach the $5 trillion economy status. Manufacturing is the biggest employer and textile, after agriculture, is the biggest employer. So creating that ecosystem and that entire system where India will become a very important strength to reckon with will be important.Vocal for local will be important, not only for consumers and the population but also for the world. India is going to be that bright spot for the world to see.I would say that textile will become a very important space for India as a whole, because I think we are talking about moving towards non-farming jobs. I think textiles will play a very important role because it's the highest employer. And definitely the demand that we see coming in for the next two years and more, home will be an important place for a consumer. So, definitely, I think textiles will be the focus.I think India is in the right space where, after China, the largest producer of cotton is India and we have vertical integrated facilities here. And we have the manpower, the knowledge, because textiles have been something which is inherent in our country. So, definitely, I think textiles could be a saviour. | welspun india saw an increasing thrust on antiviral and antimicrobial products when the Covid scare gripped the country. we created antimicrobial towels, sheets and carpets. we also created antimicrobial home linen. sleep is becoming a very important aspect of our products. we are a global leader in antiviral and antimicrobial products. | Positive |
https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/coal-india-plans-to-employ-6600-new-staff-this-year/articleshow/75464868.cms | Kolkata: Coal India, the monopoly miner of the solid fuel, has firmed up plans to recruit around 6,600 people in executive and non-executive cadres this year even as its sales reflect the declining demand trend in the broader economy.“The pace of recruitment, which has currently slowed down due to the lockdown , will be considerably accelerated by Coal India and our subsidiaries once the situation normalizes as a large number of posts are vacant and many more are to fall vacant during the year,” a senior Coal India executive said.Last year, Coal India recruited about 8,000 people in both executive and non-executive cadres.It has already conducted written tests for recruiting 1,326 executives, but interviews were postponed due to the lockdown. The process will be completed in a few weeks after the lockdown is withdrawn.Coal India also recruits a large number of doctors since mining is prone to accidents. About 400 doctors will be appointed in the executive cadre by subsidiaries in a recently decentralized recruitment process.The operating units will also need to recruit workmen.“This year, about 1,000 workmen are estimated to be appointed at all subsidiaries,” said the Coal India executive.The company also offers jobs to families displaced by its projects. Land acquisition for new projects and expansion of existing projects have slowed down in a few states due to the current situation, but the process will be speeded up after the lockdown and 500-600 jobs offered.The largest public sector employer after the railways, Coal India employs around 2.8 lakh employees, of which 19,000 are executives. The rest are in non-executive and workmen cadres. Every year, about 10,000 employees have been reaching the superannuation age. | coal india has firmed up plans to recruit around 6,600 people in executive and non-executive cadres this year. the company has already conducted written tests for recruiting 1,326 executives, but interviews were postponed due to the lockdown. about 400 doctors will be appointed in the executive cadre by subsidiaries in a recently decentralized recruitment process. about 1,000 workmen are estimated to be appointed at all subsidiaries. | Positive |
https://www.financialexpress.com/opinion/big-export-boost-requires-a-bigger-change-in-strategy/1708091/ | The government has done well to come out with a series of initiatives to boost India’s flagging exports; between FY14 and FY19, India’s exports grew at less than 1% per annum. The measures, announced last week, include replacing a WTO-non-compliant duty refund scheme with a compliant one and, with a Rs 10,000 crore higher outlay, there are measures to ensure a higher amount of export credit—around Rs 36,000 crore—is available at lower interest rates. Other measures include ways to reduce the processing time at airports and ports, etc. While a weakening rupee should help India’s $330-bn exports grow, it is not clear how much these moves will help boost growth to reasonable levels in even the medium term, much less be able to reach commerce minister Piyush Goyal’s $1-trn-stretch target.
Though Goyal was pilloried for his recent slip about Einstein having discovered gravity, he was right when he said that looking at the past didn’t necessarily help predict how the future would unfold. Between 1990 and 2018, while India’s exports grew just 18 times, for instance, Vietnam’s rose 102 times, as a result of which, its exports are 75% those of India today; these were a mere 6% in 1960. In other words, it is not how fast global trade is growing that is critical, what matters is seizing the opportunities that global trade throws up; Vietnam didn’t just catch the textiles boom, it also rode the electronics boom, and the possibilities that got thrown up with rising US-China tensions. Seizing the opportunities, however, requires an almost complete retooling of India’s manufacturing/regulations since no country can become an export powerhouse unless its local production is globally competitive; cheaper export credit, for instance, is a good thing, but it cannot make an uncompetitive product into a world-beating one. In which case, India needs to fix its infrastructure deficit, high corporate tax rates, high-cost labour and land, and reduce costs associated with bureaucratic red tape, convoluted decision-making, etc.
It is also critical that various sectoral distortions be corrected; so, for instance, India’s tax policies in textiles are biased against man-made fibres whereas global demand is for such materials, and not for cotton, which is the mainstay of India’s industry. Other sectoral policies also need to be fixed. While India’s policies on mobile phones have so far attracted mostly small players, the bulk of the $300bn global export market for smart-phones—60% of this takes place from out of China—is serviced by four of five large companies, like Apple and Samsung; it is difficult to see how India’s exports of smart-phones can take off unless India is part of the global value chains of these firms. There is, so far, little serious attempt to ensure that firms like Samsung and Apple shift their production bases to India; the boom in India’s automobile exports after Suzuki’s entry ensured its entire vendor-base moved to India, though, should have made clear just how important being part of global value chains is. Around 70-75% of global trade, in any case, takes place through value chains run by MNCs across the world. Agriculture is another big area of export potential, but harnessing this requires moving away from today’s stop-go policies towards agriculture exports—normally based on how local prices are faring—as well as those like MSPs that distort markets. In the case of minerals, where there is big exports potential, similarly, India needs to both get its royalty-cum-tax regime right as well ensure all permissions—including licensing fresh mines and all environmental clearances—are given at the earliest. Only a policy that aims at making a country more competitive can deliver top-class exports growth; an exports-policy makes little sense on its own. | between FY14 and FY19, india's exports grew at less than 1% per annum. a weakening rupee should help india's $330-bn exports grow, says arun kundhyay. kundhyay: seizing the opportunities that global trade throws up requires a retooling of India's manufacturing/regulations. | Positive |
https://www.moneycontrol.com/news/business/stocks/accumulate-jk-cement-target-of-rs-1413-dolat-capital-5591631.html | live bse live
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Dolat Capital's research report on JK Cement
JK Cement in its FY20 annual report, highlights about growing together and staying ahead of the curve. JK Cement has posted a strong all round performance in a challenging year and a challenging external environment that was dampened by the Covid-19 pandemic. The company was able to demonstrate such growth driven by resource efficiency, expanding capacities, growing prominence across urban and rural markets. The company continuously improves resource efficiency in clinker and cement production process by optimizing energy usage, utilizing generated waste and targeting higher alternate fuel and raw material usage. Also, they are trying to limit the usage of natural resources in grey cement manufacturing and increase the share of additives like fly ash and slag. On the demand front, outlook remains buoyant and any weakness is likely to be transient.
Outlook
Cement demand is likely to return to its normal growth trajectory, especially aided by the rural market where pandemic seems to have had a limited impact.
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Read More | the company has posted a strong all round performance in a challenging year. the company is trying to limit the usage of natural resources in grey cement manufacturing. the outlook remains buoyant and any weakness is likely to be transient. the company is able to demonstrate such growth driven by resource efficiency. the report concludes that the company is a "growth company" | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/dow-jones-rises-at-open-as-investors-weigh-stimulus-against-shutdown/articleshow/74897447.cms | US stocks rose on Monday as President Donald Trump followed last week's massive fiscal stimulus package by extending his stay-at-home guidelines, leaving investors hopeful the economic impact of the coronavirus could still be contained.A record $2.2 trillion in aid and policy easing from the Federal Reserve helped equities recover some of their losses last week, with the S&P 500 posting its biggest weekly percentage gain in over a decade and the Dow Jones its best since 1938.That is convincing few that the worst of the most dramatic sell-off in a decade is over, and Wall Street's fear gauge , which predicts future volatility, is still running as high as it has been since the 2008 financial crisis.However, the prospect of more government stimulus has given investors something to hold on to as they wait for signs of economic relief from the pandemic. All three main indexes rose by more than 2% on Monday. "It's a positive that precautionary measures are being extended," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York."The market is probably somewhat relieved over that because at least we'll be able to see, from the virus perspective, when we can reach a point of being able to get back into growth mode."Even taking last week's bounce into account, the severity of the spread of the virus and the likelihood of a deep global recession have so-far knocked $7 trillion off the value of S&P 500 companies.The volatility has been extraordinary and sustained, with the Dow gaining nearly 2,000 points in one session, only to fall almost 3,000 points the next day."Until we've got some evidence that can help deal with the virus, it's probably more choppy markets ahead," said Noah Hamman, chief executive office of AdvisorShares in Bethesda, Maryland.JPMorgan Chase & Co said on Saturday it expected real U.S. gross domestic product (GDP) to fall 10% in the first quarter and plunge 25% in the second quarter.All of the major S&P sectors, however, were higher with technology stocks providing the biggest boost.The healthcare sector was the second-biggest support to the benchmark index as progress on coronavirus vaccines and tests being developed by Johnson & Johnson and Abbott Laboratories lifted their shares by about 6.7% and 7.3%, respectively.At 11:23 a.m. ET the Dow Jones Industrial Average was up 444.16 points, or 2.05%, at 22,080.94, the S&P 500 was up 57.74 points, or 2.27%, at 2,599.21 and the Nasdaq Composite was up 198.16 points, or 2.64%, at 7,700.54.Norwegian Cruise Line Holdings Ltd, Royal Caribbean Cruises Ltd and Carnival Corp were the top decliners after Berenberg slashed its price targets on cruise operators by about a third.Advancing issues outnumbered decliners by a 1.12-to-1 ratio on the NYSE and a 1.51-to-1 ratio on the Nasdaq.The S&P index recorded one new 52-week high and two new lows, while the Nasdaq recorded five new highs and 19 new lows. | the u.s. stocks rose on Monday as the president extended his stay-at-home guidelines. the u.s. economy is recovering from a record $2.2 trillion in fiscal stimulus. the u.s. healthcare sector was the second-biggest support to the benchmark index. the u.s. economy is expected to recover in the second quarter. | Positive |
https://www.businesstoday.in/latest/trends/vistara-festive-sale-airline-offers-domestic-flight-tickets-starting-rs-1199/story/383938.html | Vistara festive sale: Vistara has announced a 48-hour festive season sale starting today, October 10. During the sale period, Vistara is offering discounted fares for all three travel classes. Economy Class fare starts at Rs 1,199, Premium Economy starts at Rs 2,699 and Business Class starts at Rs 6,999.
"We don't have sales too often, and this sale is our way of celebrating the festive season and our rapidly growing network with our customers," Sanjiv Kapoor, Chief Commercial Officer of Vistara said.
Flyers can book tickets on Vistara's official website airvistara.com. Booking period for the sale started midnight, October 10 and would last till 11:59 pm, October 11. Tickets can be purchased for travel period between October 10, 2019, to March 28, 2020.
Passengers can book flight tickets for destinations like Udaipur, Jodhpur, Indore, and Patna.
Also Read: After SBI, Bank of Maharashtra cuts lending rates by 25 bps
Also Read: FM Sitharaman forms group to look into PMC Bank case; assures necessary steps
Also Read: Govt sets up committee for GST revenue augmentation | Vistara has announced a 48-hour festive season sale starting today, October 10. Economy Class fare starts at Rs 1,199, Premium Economy starts at Rs 2,699 and Business Class starts at Rs 6,999. tickets can be purchased for destinations like Udaipur, Jodhpur, Indore, and Patna. also read: after SBI cuts lending rates by 25 bps, bank of Maharashtra cuts lending rates by 25 bps. | Positive |
https://www.businesstoday.in/markets/stocks/sensex-closes-1410-points-higher-nifty-at-8641-what-fuelled-the-rally-today/story/399333.html | Sensex and Nifty extended gains for the third consecutive session on Thursday and ended near day's high, backed by buying in index heavyweights.
BSE 30-share barometer Sensex ended 1,410 points higher at 29,946 and NSE 50-share index Nifty closed at 8,641, rising 323 points.
IndusInd Bank, Axis Bank, Bajaj Auto, ICICI Bank, HDFC and Bajaj Finance were among the top gainers in the Sensex pack. On the other hand, ITC, Maruti and ONGC were the top losers.
Here's a look at 10 things to know about today's rally:
1. Market sentiments strengthened as government announced a series of measures to help the poor during the 21-day lockdown today. Commenting on the announcement made by FM today, S Ranganathan, Head of Research at LKP Securities said,"The Rs 1.7 lakh crore package announced today prevents any possible retrenchment of workers as GOI is contributing the full 24% to the PF authorities and by stepping in with food grains prevents any kind of hoarding by middlemen. The DBT route ensures that the amount quickly reaches the people who need it the most."
2. Overseas trend turned positive as markets cheered US Senate passing $2 trillion coronavirus relief package. The Bill now heads to the House, which will push to pass it Friday by voice vote as most representatives are out of Washington. Following this, SGX Nifty traded 1.5% or 150 points higher at 8,469.
3. In major events, Prime Minister Narendra Modi, along with leaders of G20 nations, (represents two-thirds of the world's population) will hold a virtual summit via video conferencing today, to work out a global plan to contain the highly contagious outbreak. G20 meet offers the best platform for countries to coordinate everything from medical supplies to monetary policies to cope with Covid-19 infection that has risen drastically, hurting major economies and disrupting supply chains.
4. Rally was led by index heavyweights such as IndusInd Bank, Axis Bank and ICICI Bank. All indices traded majorly bullish today, with banking scrips gaining the most. While Nifty private banking ended 8% higher, Nifty bank and realty gained 6%, followed by a 5% rise in financials and 4% in FMCG. All other indices gained in the range of 1-3%. S Ranganathan, Head of Research at LKP Securities said,"The market rally today was broad based led by short covering in financials accompanied by value buying across sectors. Dormant Retail Investors also are seen coming back to our markets seeing attractive valuations on several stocks which are clear signs of maturity".
5. India VIX, the volatility index also closed at day's low of 71.10, declining 8%. It has fallen by 14.8% to 72.6 in last two trading sessions from the high of 85.39, indicating less volatility in the market.
6. "Nifty has given the first sign of price breakout on the short term charts in today's session," suggested Daily report on the market by HDFC Securities. It added," Next resistance for Nifty is seen at 8,883, while support for the same is seen in the range of 8,000-8,050." Commenting on near term outlook of Nifty, Manav Chopra, CMT, Head Research - Equity, Indiabulls Securities said,"Once Nifty sustains above 8,300 for few more sessions, the rally will gather steam and expect further short covering & value buying which will propel the index higher. We continue to maintain our view of Nifty scaling towards 9,300-9,500 zone".
7. Markets have turned positive overseas as authorities worldwide step up efforts to fight the pandemic and announce financial stimulus. On Wednesday, indices extended gains for the second consecutive session and closed 7% higher. From the lows formed on Tuesday, the Nifty is up 10.46%. Commenting on Nifty's recovery, Vinod Nair, Head of Research at Geojit Financial Services said," It seems that the majority of the benefits announced is factored in the market given more than 15% bounce from the recent low. The recovery of the market will continue if strict lockdown system is implemented in the developed markets and number of new virus cases reduces."
8. Nationwide efforts to stem coronavirus have been quite strong, suggest analysts. The Indian government has placed travel restrictions relatively early and imposed lockdown-like restrictions much earlier than in many countries, which helped in containing the momentum of the virus spread. The 21-day lockdown imposed by Prime Minister Narendra Modi showed that the government is willing to take hard steps to fight the Covid-19 pandemic. Motilal Oswal in its report suggested,"Although India was affected relatively late compared to some other countries, the government has been quick to implement a nation-wide lock-down for three weeks."
9. Globally, there are over 4.7 lakh confirmed cases and 21,283 deaths from the coronavirus outbreak. The number of infected cases in India has increased to 606, with 43 cases of recovery. The death toll from coronavirus in India has risen to 12 till Wednesday. Currently, India stands at the 40th place as compared to other nations.
10. In other positive cues, Reserve Bank of India (RBI) increased March 26 variable repo rate auction amount to Rs 50,000 crore from Rs 25,000 crore.
Share Market Update: Sensex ends 1,410 points higher, Nifty at 8,641; IndusInd Bank, Sun Pharma, Infosys top gainers
Indian stocks rise for third day as US Senate passes $2 trillion coronavirus stimulus
Coronavirus lockdown impact: MCX, ICEX reduce trading hours from March 30
Coronavirus lockdown: Brokers' body ANMI seeks closure of markets | Sensex and Nifty extended gains for the third consecutive session on Thursday. Sensex ended 1,410 points higher at 29,946 and Nifty closed at 8,641. meanwhile, ONGC, ICICI and ONGC were the top losers. markets cheered the passing of a $2 trillion coronavirus relief package. | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/rs-2700-crore-deal-indiabulls-to-exit-realty-biz-with-sale-of-sameer-gehlauts-stake/articleshow/69683994.cms | Others
MUMBAI: The Indiabulls Group is set to exit the real estate business with the sale of cofounder and chairman Sameer Gehlaut ’s 39.5% stake for Rs 2,700 crore to US-based private equity firm Blackstone and its local partner Embassy Group , said two persons with direct knowledge of the development. Indiabulls will turn its focus fully to financial services as it seeks to merge with Lakshmi Vilas Bank The transaction puts an enterprise valuation of Rs 7,000 crore on Indiabulls Real Estate’s portfolio — 23.5 million sq ft of residential projects and 2.4 million sq ft of commercial space under construction.Blackstone already owns 50% of Indiabulls’ commercial portfolio, including two marquee properties in Mumbai’s Lower Parel and Prabhadevi apart from one project in Gurgaon. Blackstone has also acquired the Chennai commercial property developed by Indiabulls Real Estate in its entirety. These include ready and leased properties. “The deal terms have been finalised and the parties are set to execute the same starting tomorrow (Friday),” said one of the persons mentioned above.“The entire transaction will be concluded in three legs, including an open offer as the final phase, and will be done by the end of this year,” the person said.As part of the transaction, Blackstone-Embassy will be acquiring Gehlaut’s 15% stake in Indiabulls Real Estate through an open-market deal on Friday. The remaining stake of about 24% will be acquired in six-eight weeks from now, triggering an open offer.Following this, the Indiabulls Group, which derives over 10% of its revenues from real estate, will focus on financial services.Blackstone, Embassy and Indiabulls Real Estate declined to comment.Gehlaut had told ET in April that he was willing to give up the real estate business for financial services in the context of the group’s proposed acquisition of Lakshmi Vilas Bank. Indiabulls Housing Finance (IHF) and its subsidiary Indiabulls Commercial Credit Ltd (ICC) are proposed be merged into Lakshmi Vilas Bank after a change in the merger agreement announced on the stock exchanges last month.Blackstone and Embassy are planning to keep the realty developer listed as the alliance’s residential platform. This is the first time Blackstone is acquiring a listed real estate company in India.In April, their joint venture Embassy Office Parks listed India’s maiden real estate investment trust (REIT). This has 33 million sq ft of office and hospitality assets, comprising seven business parks and four city-centric buildings in Mumbai, Bengaluru, Pune and Noida. The REIT raised Rs 4,750 crore through the issue that was subscribed 2.58 times.Embassy Office Parks REIT, the listed entity, will hold the right of first refusal on Indiabulls Real Estate’s under-construction commercial portfolio once ready and leased. However, the decision will be taken independently by its board, said the people.Apart from Blackstone, Macquarie and Brookfield Asset Management are also said to have shown interest in acquiring the company. Of these, Macquarie’s proposal involved delisting the company after conclusion of the transaction.Speaking to ET earlier this year, Blackstone Group president Jonathan Gray had underscored the fund’s continued interest in India.“Blackstone’s real estate investments in India have been performing extraordinarily for us and on a global basis, which is one of the reasons why we’re saying publicly that we want to do more here,” Gray had told ET.It has emerged as the most aggressive institutional investor in India’s real estate sector and owns the biggest portfolio of income-producing office assets in the country. It has committed $5.3 billion in the key markets of Mumbai, Noida, Pune, Bengaluru, Chennai and Hyderabad.The US-based multinational private equity, alternative asset management and financial services firm has invested across more than 50 companies in India. It has deployed more capital in India than in any other emerging market, with nearly $10.6 billion invested in private equity and real estate sector. | cofounder and chairman Sameer Gehlaut's 39.5% stake in indiabulls real estate to be sold to blackstone and its local partner Embassy. transaction puts an enterprise valuation of Rs 7,000 crore on indiabulls’ commercial portfolio. blackstone already owns 50% of Indiabulls’ commercial portfolio, including two marquee properties in Mumbai’s Lower Parel and Prabhadevi apart from one project in Gurgaon. | Positive |
https://www.moneycontrol.com/news/business/markets/hero-motocorp-shares-gain-2-brokerages-bullish-expect-double-digit-returns-5825541.html | live bse live
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Hero MotoCorp share price gained nearly 2 percent intraday on September 11 as brokerage remained bullish on the stock on strong rural demand.
Expecting robust demand and pricing, brokerage house CLSA maintained "buy" rating on the stock with a target of Rs 3,315 per share, implying a 12.4 percent upside from current levels.
"The utilisation currently exceeded 90 percent as the supply chain has eased. The company is preparing to increase inventory ahead of the festive season. The second round of price hikes should protect original equipment manufacturers per-unit gross margin," said the research firm.
Price hikes appeared to have been absorbed by the market, it said, adding the rural segment led the recovery but the urban business, too, was picking up.
A bumper kharif season along with pent-up demand and record procurement of food grains by the government boded well for the rural economy and allied sectors like agrochemicals, two-wheelers and tractors, Jyoti Roy-DVP- Equity Strategist at Angel Broking said.
In the two-wheeler space, Hero Motocorp is Angel's top pick, with a target price of Rs 3,422, implying a 16 percent upside from current levels. Roy expects greater demand for the entry level two-wheelers driven by an increased preference for personal transport in the aftermath of the coronavirus outbreak.
Hero MotoCorp has around 66 percent market share in 75-125CC motorcycle segment, which contributes 89 percent to the company's revenue.
In August, the company reported better growth compared to its peers with its products finding good traction in rural pockets.
"Further, the expected reduction in the GST rate would boost the revenue for the company. Going forward, we expect healthy growth on the back of a strong brand, wide distribution network and new product launches," Roy said.
At 1105 hours, Hero MotoCorp share was trading at Rs 2,991.95 on the BSE, up 1.47 percent.
Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | Hero MotoCorp shares gain nearly 2 percent intraday on strong rural demand. brokerage house CLSA maintains "buy" rating on the stock. kharif season, pent-up demand and record procurement of food grains bode well for rural economy. in the two-wheeler space, Hero Motocorp is Angel's top pick, with a target price of Rs 3,422. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/sensex-rises-250-points-nifty-tops-9450-on-firm-global-market-cues/articleshow/75442008.cms | Sensex gains 200 points, Nifty nears 9,450; HDFC twins rise up to 4% OPENING BELL: Sensex gains 200 points, Nifty nears 9,450; HDFC twins rise up to 4%, Axis Bank drops 3%
NEW DELHI: Domestic equity indices extended their rally to the third day during the week on Wednesday as major countries across the world eased lockdown measures. Firm cues from global peers added to the sentiment on Street.Investors have regained some confidence as parts of the United States, Europe and Australia are gradually easing restrictions while New Zealand this week allowed some businesses to open. This has led to the hope that India will follow with similar steps.At 9.20 am, BSE flagship Sensex was up 265 points or 0.82 per cent at 32,378 while NSE benchmark Nifty added 82 points or 0.90 per cent to 9,462. Broader market indices were in-line with their headline peers as Nifty Smallcap gained 0.54 per cent while Nifty Midcap jumped 0.58 per cent. Nifty 500 was up 0.53 per cent.Among bluechip stocks, financials remained at the forefront of the rally. HDFC was the biggest gainer, up 3.84 per cent at Rs 1781, while Bajaj Finance and HDFC Bank gained 2-3 per cent.IndusInd Bank was the biggest loser in the 30-share pack Sensex, down 3.91 per cent at Rs 450.55 as traders booked profits after Tuesday’s 15 per cent rally in the scrip. HUL, Titan, Asian Paints and Kotak Mahindra Bank were among the other losers in the pack.Axis Bank, which declared a March quarter loss on Tuesday, dropped 2.70 per cent to Rs 443.25.Barring Nifty Pharma and Nifty Private Bank that dropped 0.11 per cent and 0.16 per cent, respectively, all sectors on NSE traded with gains. Nifty Realty was the biggest sectoral gainer, up 1.65 per cent while Nifty Financial Services added 1.49 per cent.Globally, Asian shares rose for a third session on the trot on Wednesday as investors took heart from easing coronavirus lockdowns in some parts of the world while oil prices jumped on hopes demand will pick up. MSCI 's broadest index of Asia-Pacific shares outside Japan rose by 0.9 per cent on Wednesday, having rallied 3.3 per cent already this week. Australian shares rose 1.2 per cent led by energy and resources firms while South Korea added 1.2 per cent. Chinese markets opened in the black with the blue-chip index up 0.6 per cent.Japan's markets were closed for a public holiday. | domestic equity indices extended their rally to the third day during the week. major countries across the world eased lockdown measures. Sensex was up 265 points or 0.82 per cent at 32,378. nifty added 82 points or 0.90 per cent to 9,462. Among bluechip stocks, financials remained at the forefront of the rally. | Positive |
https://www.financialexpress.com/economy/india-sica-talks-to-take-place-soon-to-help-promote-bilateral-trade-and-investments/1510755/ | Next round of talks of India- trade body Central American Integration System (SICA) forum will be taking place in the next few months, which will encourage better trade and bilateral relationship between the countries, say government officials.
SICA which is a small group of countries of Central America, is very critical to India as it offers free exchange of trade with other countries in the United States and also with European nations. They are keenly to have deeper economic cooperation with India to boost ties between the two regions.
SICA consists of seven full members: Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama; and Dominican Republic as the Associate Member.
Talking to Financial Express Online at the end of talks between Vice President Venkaiah Naidu and President of Costa Rica Carlos Alvarado Quesada, Secretary East) MEA Ms Vijay Thakur Singh said that, “Both sides are keen that the India-SICA talks should move forward.”
The last round of talks took place in Guatemala City in 2015, and after that the talks have not taken place due to non-availability of dates of member countries. They noted with satisfaction the excellent status of political, economic relations and cooperation between the Parties.
The member States of SICA had in the previous meeting highlighted the importance of financial cooperation received from India through Lines of Credit (LOC) that have been granted to the region and welcomed India’s offer to increase it further to $ 240 million.
India has also been invited to become a member of the Central American Bank for Economic Integration (CABEI) as extra regional partner as it will help in bringing further development to the region and it will help in consolidating India’s presence in the region. According to the MEA, India has been invited to become a member of the Group of Partner Countries of the Security Strategy of Central America (ESCA), and agreed to share information about the projects of such strategy.
India has set up of Centres of Excellence in Information Technology in the SICA countries. India is keen to promote cooperation in the five pillars of regional integration, as well as, in key areas such as agriculture, food security, energy security, MSMEs, and capacity building.
A Regional Barefoot Vocational Training Centre (RBVTC) for SICA countries in Guatemala is being set up by which will train women from remote villages in the rural area as Solar Engineers.
India and SICA members are planning to move gradually towards a Customs Union, and have agreed that the implementation of this requires the carrying out of several measures according to the particular priorities of each country and turn them into solid grounds for the creation of a competitive region whose economy may give opportunities to its citizens and moves forward towards social integration and regional security. | next round of talks of India- trade body Central American Integration System (SICA) forum will be taking place in the next few months. the group of countries of Central America is very critical to india as it offers free exchange of trade with other countries in the united states and also with european nations. they are keen to have deeper economic cooperation with India to boost ties between the two regions. | Positive |
https://www.moneycontrol.com/news/business/economy/indias-forex-reserves-cross-500-billion-mark-5397131.html | India’s forex reserves have now crossed the $ 500 billion mark, according to the data released by the Reserve Bank of India (RBI).
The reserves rose to $ 501.7 billion, marking an increase of $ 8.22 billion in a week. Reserves had surged $3.43 billion to a fresh all-time high of $493.48 billion in the week-ended May 29.
What is its significance?
Adequate forex reserves are key for a healthy economy. It gives the much needed cushion to the economy in the event of an economic crisis to support the imports. India, at one point, had weak forex cover. In 1991, the country had to pledge gold to raise money. At the current level, India has enough reserves to cover imports for over a year.
What are the components of forex reserves?
Forex reserves consist of foreign currency assets, gold reserves, special drawing rights and reserves in IMF. Of these, foreign currency assets are the biggest component followed by gold.
What is the use of forex reserves for RBI?
RBI, from time to time, intervenes in forex markets to balance the volatility in currency markets. It either buys dollars to release rupee into the market or sell dollars to support rupee. Also, as mentioned earlier, forex reserves are handy if the economy plunges into a crisis.
What is supporting the forex reserves despite the economic slump?
According to rating agency CARE, forex reserves continue to register higher levels every week reflecting the strong external situation of the economy due to lower trade deficit and higher capital inflows on account of foreign investment. ECB registrations too have been higher during this period due to the favourable interest rate differential as well as stable rupee. Strong inward investments in the form of portfolio investments and rise in foreign currency assets have supported forex reserves.
Is there any other way India can use forex reserves?
There have been theories that India should use its forex reserves for infrastructure financing. Some experts have opined that the country doesn’t need to keep high level of forex reserves idle but can use part of it for other development activities, mainly to give a push to infrastructure. But not all experts agree on this point. | india's forex reserves have now crossed the $ 500 billion mark, according to the data released by the Reserve Bank of India (RBI) the reserves rose to $ 501.7 billion, marking an increase of $ 8.22 billion in a week. india, at one point, had weak forex cover. in 1991, the country had to pledge gold to raise money. at the current level, India has enough reserves to cover imports for over a year. | Positive |
https://economictimes.indiatimes.com/news/economy/finance/sri-lanka-seeks-usd-1-1-billion-currency-swap-facility-from-india-amidst-depleting-forex-reserves/articleshow/75938626.cms | Samvat 2080 Opens on a Positive Note Samvat 2080 started on a steady note for investors with India’s stock benchmarks gaining over half a per cent in the special 60-minute Muhurat trading session on Sunday evening to mark the start of the traditional Hindu new year.
Insolvency Gets All Personal Now in Boost for Recoveries Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery, potentially multiplying banks’ realizations. | india's stock benchmarks gained over half a per cent in the special 60-minute Muhurat trading session on Sunday evening. the move marks the start of the traditional Hindu new year. bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery. a new ruling by the supreme court will open up a new window of recovery. | Positive |
https://www.financialexpress.com/industry/with-25-market-share-premium-scooters-now-driving-sales/1450888/ | By Kritika Arora
While competition in the premium scooters segment is hotting up, the segment itself is emerging as the potential breadearner for manufacturers. Premium scooters now account for 25% of the overall sales of scooters.
Till July 2017, the segment’s share was a just 10%. During the first nine months of FY19, scooter sales showed a tepid growth of 5% year-on-year (y-o-y), but the premium segment (engine size of 125cc and above) grew a staggering 74% y-o-y albeit on a smaller base.
More importantly, the dynamics among the premium scooter makers is taking interesting turns, as there have been multiple launches recently. According to Jefferies, TVS Ntorq which was launched in February 2018 is now the likely No. 2 premium scooter in the pecking order with 4% share in overall scooter sales, and this it achieved without eating into the share of TVS Motor Company’s another product in the segment, Jupiter. However, “the next few months will be the key; if Ntorq can retain 4-5% share beyond 12-15 months, it could be the next ‘success’ for TVS,” said the research firm in a report.
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The leader in the premium scooter segment continues to be Suzuki Access with 35-40% share in the segment and 8% share of the overall scooter sales. Apart from Access and Ntorq, premium scooters available in the market include Honda Grazia, Hero Desini and, Piaggio’s Vespa and Aprilia SR150.
Premium scooters are more powerful, cost 10-20% higher than mass-market scooters and also have 10-20% lower fuel economy. Boosted by gains made in the premium segment, overall scooter sales of Suzuki Motorcycle and TVS Motor expanded by 43% and 19% y-o-y, respectively, in the April-December 2018 period, whereas market leader Honda Motorcycle and Scooter India grew a tepid 3%.
Honda sells premium scooters – Grazia and Activa. Hero MotoCorp, which did not have any offering in the segment until October last year, started to loose market share and de-grew by 13% y-o-y. “Although Hero did make an entry in the segment with the launch of Destini 125 in October last year, it will take another 6-9 months (to have a clear picture) if it will help Hero establish its brand in the segment or not,” analysts at Jefferies noted. Hero has lost its market share this year as Maestro Edge has slipped from 8% to 4%.
According to the research firm’s estimates, while growth in sales of premium scooters has remained above that of non-premium scooters consistently since September 2016, the divergence has become more pronounced during the current financial year. | despite a tepid growth, the premium segment grew 74% y-o-y. the market leader Honda Motorcycle and Scooter India grew a tepid 3%. the market is booming with a booming premium scooter market. the market is booming with a booming demand for scooters. a new'smart' scooter, a 125cc 125cc, is expected to be launched in the next few months. | Positive |
https://www.financialexpress.com/industry/ramco-cements-to-set-up-plant-in-andhra/1414395/ | Chennai-based Ramco Cements on Friday said that it had decided to set up a 3.15-million tonne greenfield in Andhra Pradesh with an investment of about Rs 1,500 crore. The company also announced clinker capacity expansion project at its Jayanthipuram plant in Krishna district from 3.10 million tonne per annum (MTPA) to 4.60 million tonne per annum with an estimated investment of Rs 740 crore.
Overall, the company is targeting 20 MTPA by 2020 from the existing 12.50 MTPA and will be the largest cement producer in Andhra Pradesh with 10 MTPA capacity alone. The company, including above the projects, has earmarked Rs 3,430 crore to be spent over next two years.
Anticipating a sharp pickup in demand, particularly in the southern markets in the coming months as well as part of its long-term plan to be a major player in the southern region, Ramco will be setting up a 3.15 MTPA at Kalavatala, Kolimigundla Mandal, in Kurnool district of Andhra Pradesh. State chief minister Chandrababu Naidu laid the foundation stone for the same.
The environment clearance has been obtained for the proposed plant and the required mining lease for the plant is in place. The substantial portion of land required for the plant has already been acquired by the company and the state government has consented to allot the remaining required land. This will be the modern plant with no-emission and no-effluent discharge and it will be one of the model cement plant with the least thermal and electrical energy consumption, the company said.
The plant will have the Waste Heat Recovery System (WHRS) and thermal power plant for its energy requirement. It is proposed to establish a 25-km railway line from Sanjamala station to the plant. This cement plant is expected to be completed within 15 months from the date of all requisite statutory clearances. This project is expected to generate direct employment of 300 people and indirect job of around 1,000. The firm is also planning to build a township for their employees in the proposed cement plant.
Apart from this, the company proposes to expand its clinker capacity from 3.10 MTPA to 4.60 MTPA along with WHRS of 27 megawatt (MW) at its Jayanthipuram plant in Krishna district at Rs 740 crore. This project is expected to be commissioned in March 2020.
The company is also expanding its grinding capacity at Visakhapatnam by another 1 MTPA with the investment of Rs 250 crore for increasing it from 0.9 MTPA to 2 MTPA. It is expected to be commissioned in March 2020. With the above investments, the capacity in Andhra Pradesh would come close to 10 MTPA, making the company the largest cement manufacturer in the state.
In addition to these investments in Andhra, the firm is also expanding its grinding capacities in eastern states such as Odisha and West Bengal. In Odisha, the firm is establishing a greenfield grinding plant with 0.9 MTPA capacity at `515 crore with railway siding unit. This is expected to be commissioned by September 2019. The firm is also expanding capacity in Kolaghat, East Midnapore district, West Bengal, from 0.9 MTPA to 2 MTPA at `425 crore with railway siding facility. | the company is planning to set up a 3.15-million tonne greenfield in Andhra Pradesh. the plant will have a clinker capacity expansion project of 4.60 million tonne per annum. the company is targeting 20 MTPA by 2020 from the existing 12.50 MTPA capacity. the company has earmarked Rs 3,430 crore to be spent over next two years. | Positive |
https://www.financialexpress.com/market/commodities/gold-prices-gain-18-in-less-than-two-months-as-coronavirus-cases-spike-silver-rates-rise/1950868/ | Gold prices rose today for the second straight day in a row on Thursday as investors rushed to safe-haven on poor macro data which hit investor sentiment. On MCX, gold June futures were trading higher at Rs 45,396 per 10 grams, while the silver July futures were ruling at Rs 41,880 per kg. “The rising dollar is putting pressure on gold prices but ahead of weekly initial jobless claims the sentiment still favours bulls. The investment demand too has continued to rise,” Jigar Trivedi, Fundamental Research Analyst – Commodities, Anand Rathi Shares and Stock Brokers, said. Currency markets are closed today on the occasion of Budh Purnima. “In the absence of domestic currency market, the yellow metal is poised to follow global cues for further direction,” Jigar Trivedi added.
Gold prices have gained over 18 per cent from their recent low of Rs 38,400 per 10 grams hit on March 16, 2020. While silver futures surged 25 per cent from its low of Rs 33,580 per kg touched in March. “Market participants will keep an eye on the BOE interest rate decision. Broader trends on COMEX could be in the range of $1675-1715 and on domestic front prices could hover in the range of Rs 45,050-45,850,” Navneet Damani, VP, Motilal Oswal, said.
Globally, spot gold gained 0.4 per cent to $1,691.98 per ounce US gold futures rose 0.4 per cent $1,695.60. Palladium rose 0.5 per cent to $1,805.99 an ounce, platinum gained 0.7 per cent to $753.76 and silver was up 0.3 per cent at $14.97.Meanwhile, coronavirus cases in India are close to 53,000-mark with death toll approaching above 1,700, according to the government data.
On the domestic equity front, BSE Sensex was trading at 31,459.87, down 225.88 points or 0.71 per cent. While Nifty 50 was ruling at 9,205, down 66 points or 0.71 per cent. | gold prices rose for the second straight day in a row on a poor macro data. gold prices rose over 18 per cent from their recent low of Rs 38,400 per 10 grams. silver futures surged 25 per cent from its low of Rs 33,580 per kg. gold prices are poised to follow global cues for further direction. gold prices are expected to rise in the coming weeks. | Positive |
https://economictimes.indiatimes.com/industry/banking/finance/indian-investors-concerned-about-data-confidentiality-breach-by-investment-adviser-survey/articleshow/63668049.cms | Retail investors in the country have the strongest level of trust in the financial services industry, almost 30 percent higher than the global average, but are also concerned about data or confidentiality breach , with nearly 41 per cent of them stating that they would consider changing their current investment firms, says a global survey.According to the survey done by CFA Institute , a global association of investment professionals, 71 per cent of Indian investors trust the financial services industry, compared to 44 per cent globally and 49 per cent in the Asia Pacific region.Nearly 92 per cent of domestic investors still trust the system and capital markets and believe they have a fair opportunity to profit, the 'The Next Generation of Trust: A Global Survey on the State of Investor Trust' stated.The study, which was done by CFA Institute in collaboration with Greenwich Associates , gathered responses from 3,127 retail investors and 829 institutional investors from India, China , France, Germany, Singapore, the United Arab Emirates, United Kingdom, United States and other countries.Indian, as well as global investors, the survey revealed, believed that the most important attribute while taking a decision to hire a financial adviser was being able to trust that the adviser would act in the interest of the investor.Less than half, about 45 per cent, of Indian retail investors said their financial adviser always put investors' needs first."The survey shows growing concern among Indian investors who said they have already left or would consider leaving investment firms as a result of a data or confidentiality breach (41 per cent), underperformance (39 per cent), and lack of communication (37 per cent)," it stated.The survey also highlighted a significant gap between what more than 3,100 retail investors and 800 institutional investors in 12 markets expected from their financial advisers and how satisfied they were with their existing relationships."Trust plays a vital role in the world of finance and has consistently been the greatest determinant in selecting a financial adviser. If only one-third of global investors and less than half of Indian investors believe their adviser always puts investors' interests first, it is a challenge for our industry to earn back their trust," CFA Institute India head, Vidhu Shekhar, said.Investors surveyed in India said that their trust in advisers was driven by those with reliable security measures to protect data (83 per cent importance), and those who provide easy-to-understand investment reports (82 per cent).Around 81 per cent of domestic investors said they would employ investment professionals with credentials from respected industry organisations.Close to 79 per cent of Indian investors will prefer engaging with investment professionals who can help generate returns better, fully disclose fees and other costs (78 per cent), charge fees that reflect the value received from the relationship (77 per cent), and disclose and manage any conflicts of interest (72 per cent).The findings also revealed that 56 per cent of Indian investors believe there will be another financial crisis in the next three years, the highest number globally, with the likely next source being national/global politics (46 per cent), governments defaulting on debt (34 per cent), cryptocurrency bubble (31 per cent), and cyber attack (28 per cent)."However, 83 per cent of Indian investors believe their advisers are well or very well prepared to manage their portfolio through a financial crisis, as compared to 55 per cent of investors globally," it showed."With 87 per cent of Indian respondents under the age of 45 years, all advisers need to do is to demonstrate a strong commitment to ethics, expertise, and transparency," Shekhar said. | 71 per cent of Indian investors trust the financial services industry. nearly 92 per cent of domestic investors still trust the system and capital markets. most important attribute while hiring a financial adviser was trust. 45% of Indian retail investors said their financial adviser always put investors' needs first. survey gathered responses from 3,127 retail investors and 829 institutional investors from india, china, France, Germany, Singapore, the United Arab Emirates, United Kingdom, United States and other countries. | Positive |
https://www.businesstoday.in/bt-buzz/news/bt-buzz-why-mukesh-ambani-debt-reduction-plan-for-ril-is-going-to-be-tricky/story/403296.html | KEY HIGHLIGHTS
RIL subsidiary Jio Platform has raised Rs 60,596 crore in three transactions with Facebook, Silver Lake and Vista
A large chunk of the proceeds from Jio Platforms' investments will go into reducing RIL's debt
Two of the RIL's largest transactions -- Saudi Aramco and fiber InvIT -- are still to be finalised
Reliance Industries (RIL) announced on Friday that global investment firm Vista Equity Partners is investing Rs 11,367 crore for 2.32 per cent stake in subsidiary Jio Platforms. This is the third investment in Jio Platforms in the past 16 days that has brought in Rs 60,596 crore. Along with the Vista deal, the previous two investments by social media giant Facebook (of Rs 43,574 crore) and US private equity firm Silver Lake (of Rs 5,656 crore) have resulted in equity sale of 13.46 per cent in Jio Platforms so far.
Also read: Mukesh Ambani's Jio Platforms scores hat-trick; bags Rs 11,367 cr investment from Vista after FB, Silver Lake
Analysts say that these deals have helped RIL reposition itself as a consumer and technology-focussed company. "By focusing on 'consumer + technology' in a less digitalised economy like India, RIL is augmenting its consumer business growth with global tech major partnerships. While partnership with Facebook can help Jio monetise customers through non-telco revenue stream, investments by Vista and Silver Lake will provide further cash for deleveraging," said Axis Capital in a recent report.
But that's not all. There are more such deals in the pipeline. In the last earnings call, RIL joint CFO Srikanth Venkatachari had said that the Facebook deal was 50 per cent of the target value unlocking that RIL has planned for Jio Platforms. "We have also mentioned that we have received interest from other global investors for a similar-sized additional stake," Venkatachari said.
Also read: US, Saudi companies set eyes on buying stakes in Reliance's Jio, says Bloomberg report
In April last year, some reports suggested that Masayoshi Son-backed SoftBank was eyeing a stake in Jio; since then, there has been no word on that. But nothing can be ruled out as the current deals are non-exclusive in nature. "RIL and Facebook would be free to do similar deals with any other player," says Mahesh Uppal, director at consultancy firm ComFirst.
Going back to RIL's finances -- As per Hong Kong-based investment firm CLSA, RIL is currently pursuing eight asset sales worth Rs 3.4 lakh crore. These include three Jio Platforms deals (which are yet to get regulatory approvals), BP's Rs 7,000 crore investment in RIL's fuel retailing business, Saudi Aramco's Rs 1.11-lakh crore investment in oil-to-chemicals segment, and Brookfield's Rs 25,215 crore investment in tower InvIT (infrastructure investment trust). Then, there are at least two more deals in the works - stake sale in fibre InvIT and potential transaction/s of similar size as the recently-announced Facebook deal.
At the 42nd annual general meeting of RIL, its chairman and managing director Mukesh Ambani had set a target to become a 'zero net debt company' by March 2021. Some analysts say that going by the pace at which RIL is getting new investments, it's quite likely that RIL would reach that goal much before the deadline. In fact, Mumbai-based Antique Stock Broking says that there's a high likelihood of RIL turning net-debt positive by March 2021. Fair enough!
Also read: BT BUZZ: Don't be naive! Reliance Jio-Facebook deal is a partnership of unequals
However, some analysts call Ambani's mission challenging. Why? Let's look at RIL's current debt position: At the end of March 2020, RIL reported gross debt of Rs 3.36 lakh crore, with cash and equivalents of Rs 1.75 lakh crore. As per JP Morgan, this gross debt numbers don't include Rs 70,000 crore of debt transferred to InvIT, Rs 50,000 crore of capex creditors, and spectrum liabilities of over Rs 20,000 crore. These (additional) liabilities add up to Rs 1.4 lakh crore.
As a standard practice, telecom companies take into account spectrum liabilities as part of their gross debt. For instance, Vodafone Idea's gross debt stood at 1.16 lakh crore on December 31, 2019, which included deferred spectrum payment of Rs 88,530 crore. Despite a series of investments in Jio Platforms, RIL's deleveraging plan hinges largely on three transactions -- deal with Saudi Aramco, potential investment in fiber InvIT, and the Rs 53,125-crore rights issues.
Also read: Mukesh Ambani surpasses Jack Ma as Asia's richest man after Reliance Jio-Facebook deal
Just around the time Brookfield deal was signed last July, RIL was actively looking for an equity partner in the fiber InvIT. So far, it has not made any headway. Though in the recent earnings call, joint CFO Venkatachari said that the negotiations are at an advanced stage with potential investors for the fibre assets. Industry experts say that the Jio Fiber business has not picked up pace (like its wireless business) due to not-so-disruptive price points, lack of aggression to fight out with well-entrenched competitors and longer gestation period in the fiber business. CLSA estimates potential investment of Rs 91,400 crore in the fiber InvIT which could make it the second biggest deal after the Saudi Aramco deal.
RIL is reportedly finalising the offer documents for the rights issues -- the biggest ever for any corporate -- for which it will try to get fast-track approvals from SEBI. The proceeds from the issue are likely to be used for reducing debt. Analysts say that the stake sale to Aramco is the centerpiece of RIL's de-leveraging strategy. But even that deal seems to have been questioned after the global crash in crude oil prices. The coronavirus outbreak has hugely impacted the demand for refining and petrochemicals which could potentially jeopardise the transaction. As such, the government has reportedly asked a court to restrain the Aramco deal. Again, RIL recently said that the due diligence on the Aramco deal is progressing well and that gave a sense of hope to investors.
"While the Saudi Aramco due diligence is ongoing, clearly with Covid-19 disruptions, the transaction would likely get pushed out. The key investor concern is whether the collapse in crude would lead to deal cancellation," says an April 22 report by J.P. Morgan. With two big transactions -- Saudi Aramco and fiber InvIT -- still in limbo, the deleveraging plans could hit a brick wall. | three transactions have brought in Rs 60,596 crore for the company. this is the third investment in Jio Platforms in the past 16 days. analysts say these deals have helped RIL reposition itself as a consumer and technology-focused company. there are more such deals in the pipeline. a large chunk of the proceeds from the investments will go into reducing RIL's debt. | Positive |
https://www.moneycontrol.com/news/business/conceptualizing-5g-trials-with-oems-application-developers-bharti-airtel-5610411.html | Telecom operator Bharti Airtel has said it is in "continuous pursuit" to upgrade existing 4G base stations with 5G capabilities to be future ready, and is "conceptualizing 5G trials" in association with OEMs and application developers.
Bharti Airtel's annual report for FY20 talks of "building 5G capabilities" and promises that proposed investments in current networks will deliver robust connectivity to consumers and lay "a strong foundation for 5G services in the near future".
"In association with OEMs (original equipment manufacturers) and application developers, we are conceptualising 5G trials. These trials help to showcase our 5G capability through various enhanced Mobile Broadband (eMBB) and industrial use cases and applications," the annual report said.
The rising demand for high-speed data has escalated the need for 5G services in one of the world's largest telecom markets.
"To be a future ready enterprise, we are in continuous pursuit to upgrade our existing 4G base stations with 5G capabilities," the company said.
The proposed investments in the current networks will deliver strong connectivity to Airtel consumers, laying a strong foundation for 5G services in the near future, it pointed out.
To enable seamless adoption of cutting-edge technology, Airtel has aimed its network investments towards the creation of a 5G-ready network.
The company further said that preparation for execution of 5G trials has been in full swing for smooth and effective trial execution when the spectrum is available for the same. | Bharti Airtel says it is "continuous pursuit" to upgrade existing 4G base stations. company is "conceptualizing 5G trials" in association with OEMs and developers. company promises investments in current networks will deliver robust connectivity to consumers. rising demand for high-speed data has escalated the need for 5G services. aimed investments towards the creation of a 5G-ready network. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/5-stocks-that-have-been-winning-the-war-on-the-bears-comprehensively/articleshow/64853142.cms |
Tech stocks, which were out of favour on Dalal Street till the other day, have since rebounded smartly to log up to 40 per cent gains over the past one year.In the process, they have outperformed all other equity fund categories as well as equity benchmarks Sensex and Nifty.An out and out technology-oriented fund, Tata Digital India Fund, has risen as much as 52 per cent in last one year compared with 14 per cent rally registered by the 30-share Sensex pack.As much as 85.62 per cent of the fund’s corpus is invested in the technology sector, and a mere 5 per cent in engineering and 2.94 per cent in services. Tata Consultancy Services (TCS) alone accounts for 16.31 per cent of asset this fund manages. Tech Mahindra (9.98 per cent), Infosys (9.43 per cent), NIIT Technologies (9.02 per cent) and Tata Elxsi (7.78 per cent) are top holdings in the pecking order.Shares of TCS, Tech Mahindra, Infosys, NIIT Technologies and Tata Elxsi have advanced 58 per cent, 69 per cent, 41 per cent, 91 per cent and 67 per cent, respectively, in last one year.Market experts believe that IT will remain in flavour this year.“IT will retain flavour for some more time, at least in terms of price correction. In last two quarters, their numbers have been good and we have seen movement in stock prices as well,” Rahul Shah, AVP, Group Leader-Equity Advisory Group, MOFSL, told ETNow in a chat.This quarter also, IT stocks should hold on. When there is uncertainty in the broader market and the rupee-dollar volatility is at its peak, IT stocks always get into the front seat, Shah said.The rupee hit a lifetime low of 69.10 against the dollar last month. The BSE IT index has rallied 24 per cent on a year-to-date basis and 42 per cent since June last year.“IT looks good. I would stick to largecap IT companies such as Infosys and HCL Tech at their current levels, looking at their valuations vis-à-vis other midcap stocks,” he said.Two other technology-oriented schemes, ICICI Prudential Technology Fund (up 41 per cent) and SBI Technology Opportunities Fund (up 41 per cent), have also offered robust returns to investors in last one year.ICICI Prudential Technology Fund has highest weightage to Infosys, L&T Infotech, Tech Mahindra, HCL Technologies and Oracle Financial Services Software (OFSS), while SBI Technologies Opportunities Fund has 30.36 per cent of its assets in Infosys alone.Shares of OFSS rose 13 per cent in last one year but have been almost flat during the first half of 2018. TCS, Cyient, Tech Mahindra and Newgen Software are other top holdings of this fund.Among others, Aditya Birla Sun Life Digital India Fund and Franklin India Technology Fund have gained 39 per cent and 32 per cent since June last year.Portfolio-wise, Aditya Birla Sun Life Digital India Fund has 72.82 per cent weightage to technology, 15.38 per cent to services and 10.16 per cent to communication.The fund has parked most of its fund in Infosys, Tech Mahindra, HCL Technologies, Sun TV Network and KPIT Technologies.Franklin India Technology Funds also highest weightage to Infosys (23.91 per cent), followed by TCS (9.89 per cent), HCL Technologies (8.21 per cent) and Bharti Airtel (5.77 per cent).Six stocks from the sector have already doubled investor wealth in last one year with Nelco and Sasken Technologies rallying 167 per cent and 120 per cent, respectively. KPIT Technologies, Infinite Computer, L&T Infotech and Firstsource Solutions have advanced over 100 per cent between June 2017 and this past June.“While the growth numbers have improved in IT, management commentaries have become a little bullish and there have also been share buybacks in some cases. At this point of time, given the concerns over the broader market, this sector seems to be the best defensive space to be in. That is where most of the money has moved in during the past couple of months. The only risk, if any, will be it some of the growth numbers do not meet expectations,” Harsha Upadhyaya, CIO-Equity, Kotak AMC, told ETNow. | tech stocks have outperformed equity benchmarks Sensex and Nifty. a tech fund has risen as much as 52 per cent in last one year. market experts believe that IT will remain in flavour this year. a rupee-dollar volatility is at its peak, so IT stocks should hold on. a tech-oriented fund has risen as much as 58 per cent in last one year. | Positive |
http://www.financialexpress.com/industry/sme/zappfresh-raises-rs-20-crore-from-dabur-indias-amit-burman-and-sidbi-venture-capital/1105229/ | Gurugram based DSM Fresh Foods fresh meat brand Zappfresh has raised Rs 20 crore in pre-series A round of investment from the Vice Chairman of Dabur India, Amit Burman and SIDBI Venture capital. The company plans to use the funds in driving business strategy, expanding supply chain and to scale up geographically.
Commenting on the investment, Amit Burman, Vice Chairman at Dabur India said, “I see a great potential in the ‘e-market for meat’ and Zappfresh has had an impressive growth story. The business model is innovative and the use of technology in the supply chain management has allowed for the possibility of a sustainable scale up capability. I look forward to be part of this venture and its success.”
The company claims to have reached the breakeven point in the first 8 months, after raising the angel investment from renowned HNIs. The company has scaled rapidly since its inception in 2015 and now claims to provide services to entire Delhi NCR from its Gurgaon based factory.
Zappfresh was founded by Deepanshu Manchanda and Shruti Gochhwal in 2015. They procure meat from the farms and delivers it to the end-customer in the selected time-slot on the same day. The company deals in raw meat and cooked meat products.
The company in a media release stated that the investment has laid the foundation to validate this category of business to have a growth potential. While investing partner Amit Burman will offer mentorship to the company.
Commenting on the investment and why Zappfresh, Sajit Kumar, Senior Vice President at SIDBI Capital said, “Investing in a firm many times translates to investing in an idea with the potential to scale up. This in my mind is the story of Zappfresh. The fresh meat industry is highly fragmented and digitization of the market can also improve the value chain operating system of this industry. Zappfresh’s promise to offer a hassle-free meat buying experience of highest quality is unique and has great potential.”
The company has pioneered the concept of ‘Farm to fork’ via the use of Farm-Tech to optimize their time-to-delivery and costs.They are engaged with a number of farms to ensure absolutely fresh and chemical free products. Their technology helps connect farmers, vendors and retail channels. This is done via real time data and inventory tracking, reducing time-to- consumer from farm.
Talking about the latest round of funding, Deepanshu Manchanda, CEO & Co-Founder, Zappfresh said, “The company would use the funds to hire people in key departments and increase storage capacity. We are very excited to have Mr. Burman and SIDBI Venture Capital on board believing in our business and supporting our expansion plans. This investment will aid our back-end support along with expansion in newer markets after having laid a strong foundation in Delhi-NCR” | Zappfresh was founded by deepanshu manchanda and Shruti Gochhwal in 2015. they procure meat from the farms and delivers it to the end-customer in the selected time-slot on the same day. the company plans to use the funds to drive business strategy, expanding supply chain and to scale up geographically. the company claims to have reached the breakeven point in the first 8 months, after raising the angel investment from renowned HNIs. | Positive |
https://www.moneycontrol.com/news/business/sri-lanka-to-seek-400-million-financial-facility-from-rbi-to-meet-short-term-financial-needs-5185821.html | Sri Lanka is set to enter into an agreement with the Reserve Bank of India for a currency swap worth $400 million to boost the foreign reserves and ensure the financial stability of the country which is badly hit by the COVID-19 pandemic, a top minister has said.
The Cabinet has approved a proposal made by Prime Minister Mahinda Rajapaksa as the Finance Minister to enter into an agreement with the RBI for the financing facility to meet short-term international liquidity requirements, Co-Cabinet spokesman Information and Communication Minister Bandula Gunawardena said.
Sri Lanka will enter into the agreement with the RBI for a Bilateral Currency Swap Arrangement worth $400 million, Gunawardena said, adding the facility from the RBI is aimed at boosting the island nation's foreign reserves.
Sri Lanka has placed critical economic measures to save the resources hit badly by the COVID-19 pandemic which has infected 373 persons in the country and the death toll reached 7.
Addressing the Cabinet media briefing yesterday, Gunawardena said the Cabinet meeting chaired by President Gotabaya Rajapaksa paid special attention to the control of the coronavirus pandemic, its success and the distribution of goods and relief to the people.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
The minister pointed out that the whole world is now experiencing the economic collapse since World War II resulted from the COVID-19 outbreak and a single country alone cannot find a solution to the crisis.
So the Cabinet of Ministers has approved this proposal in order to ensure the financial stability of the country, Gunawardena said.
The country has ordered imports restrictions to prevent non-essential imports. This is in view of the local rupee falling to its historical low against the US dollar. The rupee now hovers over 195 to the dollar gaining somewhat from being down to 200 mark.
The government has also announced talks with Asian Development Bank and China's Asian Infrastructure Investment Bank. A $300 million budgetary support is anticipated from the ADB, officials said.
The announcement for getting the $400 million financial facility from India came as the rating agency, Fitch on Wednesday warned Sri Lanka to reform its soft-peg and block the ability of its domestic operations department to inject large volumes of cash below the ceiling policy rate to stop monetary instability.
Last month, during a video conference of Prime Minister Narendra Modi along with leaders and representatives from SAARC nations, Sri Lankan President Gotabaya Rajapaksa said, "Our economy has taken a severe blow due to the coronavirus, particularly in tourism... Our exports are also adversely affected."
Tourism is the third-largest earner of foreign exchange in Sri Lanka. The decline in tourist arrivals has hit the island nation's tourism industry in a big way.
Largely owing to the COVID-19 pandemic, the World Bank recently forecast Sri Lankan economy to contract by 3 percent this year as against a 2.4 percent estimated growth last year, whilst the IMF predicted the global economy to contract by 3 percent as well.
Follow our full coverage of the coronavirus pandemic here. | Sri Lanka set to enter into agreement with the RBI for a currency swap worth $400 million. the swap is aimed at boosting the island nation's foreign reserves. the government has placed critical economic measures to save the resources hit badly by the pandemic. the death toll from the pandemic has reached 7. a vaccine works by mimicking a natural infection. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/psu-banks-good-trading-bets-it-pharma-story-not-over-yet-ashwini-agarwal/articleshow/79655804.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Marketing Officer Programme Visit Indian School of Business ISB Chief Technology Officer Visit IIM Lucknow IIML Chief Executive Officer Programme Visit
If liquidity remains ample and interest rates remain low, then the market would attain new highs , says, Co-founder,We saw record flows in November from overseas. We are seeing reports from pretty much all retail brokerages or even CDSL saying that the number of new accounts and new folios continue to increase at a time when there are fairly significant redemptions from mutual funds! So yes, while the market is on a tear and everything seems to be good. There is an element of excessive optimism that is starting to feed through. There are fundamental reasons behind it. Covid cases, at least in India, are turning out to be quite manageable. We do not really have a second spike despite the winter setting in the Diwali festivities and inoculation should be available in the next few weeks as per our Prime Minister.There are reasons to be optimistic but at the same time, looking at the kind of stocks that are now attracting investors, I cannot help but feel a little bit cautious that one has to wait for a breather for the traditional investors to become interested again but you know that is my caution. The fact is that the RBI last week said pretty much in Mario Draghi style they will do whatever it takes to get the growth to become broad-based. If liquidity remains ample and interest rates remain low, then the market would have new highs ahead of us.Fundamentals, momentum and liquidity are multiple facets of what drives the market and it is very difficult to separate one from the other. If you are a very strong fundamentals-oriented person, you may argue that the rally in the PSU banks is completely unwarranted because these banks have very large loan losses to provide for. On the flip side, from a fundamental perspective, one can argue that these banks are trading at price to book ratios which have never been seen in the history of their trading, Even if you adjusted to book value for all the losses that could potentially come through, the price to book values are still relatively attractive.I have started to try and become more considered in my approach. One has to take everything into account as the momentum comes and fades. People are buying and selling and one has to build an investment case to convince yourself that you want to own a security whether it is for a few days or few months or few years and it depends on who you are.I am somewhat cautious and expect investment demand to take off in a significant way. The government is pushing PSUs to spend as much as they can but the government itself does not really have much money to spend. The private sector is spending in a few areas like pharmaceuticals. Companies are investing money but in largecap private sector, we are not seeing signs of significant capex pick up. UltraTech has announced plans to expand capacity in a significant way but the long term history of Ultratech shows they are very sensitive to market share and may be preparing for potential gains two, three, five years down the line in the market. They do not want to miss any market share for want of capacity.Also, companies tend to have a much longer investment horizon than financial investors and to read UltraTech’s decision as a revival of private capex in the near term might be a very difficult thing to do. Financial investors including ourselves think that two to three years is the maximum that we can look out into. A 5-10-year view is too far out. But as a corporate, when you are putting assets into the ground, it is a very different situation.The one way to play on industrial recovery potential is through the banking system. If the industrial recovery is to come down the road which is not visible today, then financials would be an excellent way to play that because these stocks are trading at reasonable valuations. The asset quality will pick up if the industrial investment demand is to come through. The stress on account of Covid-19 appears to be lower than what was initially feared.Liquidity continues to remain aplenty and that helps the liability side in a big way. Now whether you want to go down the quality curve or go up the risk curve and want to embrace PSU banks, that is entirely one investor’s view versus another’s. The PSU banks history tells us that they tend to have much higher NPLs than other challenges but at the same time, one has to accept that the valuations are also extremely attractive at this point in time. If there is liquidity and a tailwind behind the sector, I would not ask you to avoid PSU banks, especially if you are looking to trade on short-term momentum.I also don’t think it is over for IT and pharma. IT and pharma is a structural story for the next three to five years and there is going to be a significant amount of business opportunity for them. Valuations are not as attractive as they were six months ago but investors can expect returns which are equivalent to at least the earnings growth in most of these companies. These companies will report earnings growth between 15% and 25% per year and that is not a bad return to aspire for.The challenges are obvious. Number one is that the Covid second wave is raging in the west and even though inoculations have started in the UK and probably will start in the US shortly, it will take a while for a large number of people to get vaccinated. There are challenges out there from a health perspective.Then there is a new administration in the US. Their economic policy and outlook is still to be seen. The markets are at all-time highs all over the world, who knows you could see a global selloff and that is a risk that will not spare India in the short run. That is a big worry that happens elsewhere in the world.The second one closer home is the debate between the revival in demand being a result of a pent-up demand or a continuation of a momentum that we have seen in demand over the last three-four months in the next 12 months. Anecdotally, a lot of small and medium size businesses have done poorly over the last six months but India is a country where small businesses have always been able to pull themselves up by their bootstraps and they have an amazing amount of resilience.I am hoping that just like we saw after demonetisation and GST, the medium and small scale enterprises that have bore the brunt of the Covid slowdown will also be able to come back as strongly as they did in the previous two rounds. It is just a hope. We do not know if that is the case and if you read RBI monetary policy minutes, that is exactly what the RBI governor said we need to see for pent-up demand to turn into a much more broad-based recovery. I do not think the answer is apparent right now.Consumption relating to home improvement and investment in your homes sounds logical because there has been a significant amount of government focus on reviving demand in housing especially low price housing. If you invest money into a new apartment you would like to put the furniture and make the tiles that you like. I am not surprised that these companies are starting to see the benefits of that demand.The question again is how long will this demand sustain, cost of ownership or cost of purchase of a new apartment in terms of EMI relative to income levels is probably the lowest that we have seen since 2002-2003, after which we saw a significant real estate rally. So is this going to be a repeat of that time again? I do not know.2008 is a different comparison because in 2008, the corporate debt level and the corporate health levels were at very different levels. Number two, fiscal deficit and government indebtedness was much lower than what it is today.If you remember 2005-2006-2007 were years when tax collection surprised on the upside and fiscal deficits were very low. There was a possibility for the government to spend a lot of money which it did and which did not end up creating the supply side response that we would have hoped. This resulted in inflation and taper tantrums. The 2008-2010 cycle was a very different one.This time around, the government does not have as much fire power. Do the consumers have enough fire power? I think yes, but it is a cautious yes because I would not want to extrapolate what we are seeing from home buyers or what we are seeing from autos into the rest of the economy. A large number of people have been through salary cuts and job losses but at the same time, people have also cut back on expenses on eating out or travelling or entertainment.As the economy limps back to normal, some of those areas of expenditure will go back up. It is not a very clear picture.Aviation and hospitality will come back eventually. There is a wonder lust among all of us and we have been denied that for almost a year. All of us, my friends, family, everybody is itching to go some place, if they have not already done so. So travel will come back. Multiplexes is a more difficult one because the ability to entertain yourself at home through very high quality content and with the bandwidth being available to download high quality movies and shows has somewhat changed the way we consume entertainment.Yes, in a country like India where there are very few outdoor places to go to, shopping and cinema becomes the kind of a place that you go to for getting away from home and not necessarily for entertainment. So, some footfalls probably will come back but will they come back in the same amount of strength that we saw prior to the pandemic? I do not know. Also, by regulation, the cinema halls will require to maintain social distancing at least for some time to come and that has a significant impact on their operating leverage.Two years from now, they could be back to normal is an argument I hear very often but I would like to separate travel and hospitality from near at home entertainment if that is the term to use. | if liquidity remains ample and interest rates remain low, then the market would attain new highs. if momentum comes and fades, one has to take everything into account, says co-founder. he says the market is on a tear and everything seems to be good. he says the market is a'very strong fundamentals-oriented person' | Positive |
https://www.financialexpress.com/market/share-market-today-live-updates-sensex-nifty-rupee-vs-dollar-economic-package-finmin-ril-fb-deal-mukesh-ambani-q4-earnings-rbi-coronavirus-covid-19-april-23-thursday/1937103/ | Share Market News Today | Sensex, Nifty, Share Prices Highlights: Bulls continued their winning run on Dalal Street on Thursday with BSE Sensex ending 483 points or 1.54 per cent higher at 31,863. The broader Nifty 50 index settled 126 points or 1.38 points up at 9,314. Index heavyweights such as Infosys, Kotak Mahindra, HDFC Bank and TCS were among the top contributors to the index. Out of 30 Sensex stocks that constitute S&P BSE Sensex, 14 stocks settled in negative territory with Titan as the top loser, down 4.18 per cent, followed by HUL, Power Grid and NTPC. The top Sensex gainers were Kotak Mahindra Bank, TCS, HCL Tech, ONGC and RIL. Barring Nifty FMCG and Nifty PSU Bank index, all the sectoral indices ended in green today. Nifty IT index jumped 4.43 per cent led by gains in NIIT Tech, TCS, Infosys and MindTree. On the flip side, Nifty FMCG index dropped over 1 per cent weighed by weakness in Hindustan Unilever, Marico and Colgate-Palmolive.
The government on Wednesday held another meeting of the Cabinet but the wait for a much-anticipated relief package to prevent large-scale job losses and rebuild the economy, devastated by the Covid-19 pandemic and a nation-wide lockdown, just got longer. Briefing media after the Cabinet meeting, information and broadcasting minister Prakash Javadekar said the economic package will be announced as and when it’s ready. | bulls continued their winning run on Dalal Street on Thursday with BSE Sensex ending 483 points or 1.54 per cent higher at 31,863. the broader Nifty 50 index settled 126 points or 1.38 points up at 9,314. out of 30 Sensex stocks that constitute S&P BSE Sensex, 14 stocks settled in negative territory with Titan as the top loser, down 4.18 per cent. | Positive |
https://www.moneycontrol.com/news/business/will-focus-on-three-pronged-strategy-to-drive-growth-zydus-wellness-5832301.html | live bse live
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Consumer wellness firm Zydus Wellness has said it will take a three-pronged strategy to drive growth going forward.
As a part of the strategy, the company would accelerate growth of core brands with innovations to focus on portfolio diversification and expansion with an aim to recruit new customers.
Besides, it is planning differentiated propositions for the products supported by strong "Go To Market", Zydus Wellness said in an investors' presentation.
The second pillar of the strategy is building scale in international business by focusing on South Asian Association for Regional Cooperation (SAARC) countries, the Middle East and Africa region and Southeast Asia region, it added.
The company is also planning to enter new markets with relevant offering as part of expanding its geographical footprint, Zydus Wellness said.
Leveraging mergers and acquisitions is the third part of the company's strategy to significantly grow scale. The firm has a successful track record of integrating acquisitions, and is also open to bolt-on acquisitions at the right time, it said. | the company will focus on diversification and expansion to recruit new customers. it is planning differentiated propositions for the products supported by strong "Go To Market" the second pillar of the strategy is building scale in international business. the company is also planning to enter new markets with relevant offering. leveraging mergers and acquisitions is the third part of the company's strategy. | Positive |
https://www.moneycontrol.com/news/business/personal-finance/should-us-equities-be-the-core-investment-in-an-indian-portfolio-5687631.html | US equity markets are the largest in the world, with a market cap of around $30 trillion, representing around 35 per cent of the global stock market capitalization. With a nominal GDP of around $21 trillion, the US economy represents around 25 per cent of the global pie. No other single country comes close to being such a significant part of the global economic and financial system.
US-listed companies, as a group, can be considered truly global with more than 40 per cent revenues coming from international markets such as Europe and Asia. These companies follow the most transparent disclosure norms and are under constant scrutiny from regulators and analysts.
The US markets get the largest allocation from investors across the globe. However, most Indians, except ultra-high net worth individuals (UHNWI) and family offices, remain unaware and unexposed to the US markets.
Isn’t the US market in a bubble?
To test that assumption, a few valuation multiples and profitability ratios for the US markets are compiled. In the US markets, the S&P 500 represents large caps, S&P 600 the small caps, Nasdaq 100 represents the technology sector large caps, while S&P small cap IT is self-descriptive. For the financial data, an ETF tracking the index has been used.
For valuation multiples, PE (price-earnings), PCF (price to cash flow) and PB (price to book) are used. In the US, the GAAP earnings have numerous non-cash expenses and hence PCF based on cash flows is a more representative ratio. Similarly, the cash flow return on equity CFRoE is a better representation of the profitability of companies.
What are the expected returns?
Focusing on the PCF ratios, the US markets clearly do not look overvalued. In fact, for the S&P 500, a PCF of 13.64 is equivalent to a cash flow yield of nearly 7 per cent. The nominal US GDP has grown at nearly 4 per cent over the last decade, which is likely to continue in the long term. Assuming 25 per cent-50 per cent of the cash flow yield is reinvested for achieving the 4 per cent growth, the S&P 500 would yield an estimated 7.5 per cent-10 per cent in USD returns over the long term, similar to the historical S&P 500 returns. With a historical rupee depreciation of 2.5 per cent-5 per cent, the S&P 500 expected returns in INR terms are estimated at 10 per cent-15 per cent in the long term. This compares well with the long-term Nifty returns of 9.63 per cent since inception. (Source: Nifty 50 Index factsheet at niftyindices.com). Please note that all estimates in this article are based on the assumptions made and actual results could be different.
Similarly, the S&P 600 small caps provide an expected return of 11 per cent-14 per cent in USD and 13.5 per cent-19 per cent in INR. The Nasdaq 100, with higher growth rates of 8 per cent, provides an expected return of 11 per cent- 12 per cent in USD and 13.5 per cent-17 per cent in INR while the small-cap IT stocks provide an expected return of 12 per cent-14 per cent in USD and 14.5 per cent-19 per cent in INR.
Will Fed’s actions weaken the US dollar?
The US Fed has injected trillions of dollars in a matter of months. Normally, any increase in currency circulation without a corresponding increase in the real GDP should result in currency depreciation. However, similar actions from the other central banks towards their currencies makes dollar weakening unlikely. The relative strength of the US economy probably creates a bias towards appreciation of the dollar vis-à-vis other currencies. The dollar is likely to remain strong in the long run on the back of significant international revenue share of US companies and the global dominance of its technology sector. Any weakening of the dollar only makes the export competitiveness of the US stronger and would quickly stabilize the dollar further because of larger export volumes.
How should one invest in the US markets?
As shown above, the risk-rewards differ considerably across different segments of the US market. A curated multi-cap portfolio could avoid companies with weak balance sheets, thus enhancing safety, while adding companies at discount to their intrinsic values, thus enhancing returns.
The global economy is undergoing a multi-trillion-dollar, multi-decadal digital transformation. There are nearly 200 US companies, including FAANGs, in the areas of Artificial Intelligence (AI), Internet of Things (IoT), 5G, Cloud, Cyber Security etc. Many of these companies enjoy persistent advantages arising out of intangible assets like patents or network effects while being available below their intrinsic value from time-to-time.
“While the good player goes where the ball is, the great player goes where the ball is going to be.”
The smart investor would allocate to the US multi-cap—where the ball is—and also to the US technology sector—where the ball is going to be.
(The writer is CEO & Chief Investment Strategist, OmniScience Capital) | the US economy is the largest in the world, with a market cap of around $30 trillion. the nominal US GDP has grown at nearly 4 per cent over the last decade. most Indians, except ultra-high net worth individuals, remain unaware and unexposed to the US markets. the US markets get the largest allocation from investors across the globe. but most Indians, except ultra-high net worth individuals (UHNWI) and family offices, remain unaware and unexposed to the US markets. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/droom-earmarks-usd-100-mn-capex-for-tech-marketing/articleshow/74266551.cms | NEW DELHI: Online automobile marketplace Droom will pump in about USD 100 million (about Rs 718 crore) this year towards further strengthening its technology offerings, marketing and new initiatives, its founder and CEO Sandeep Aggarwal said.The company, which aims to touch USD 120 million (about Rs 862 crore) in net revenue by 2021, is also looking at expanding its international operations to six new markets including Indonesia, Vietnam and the UAE this year."We have earmarked a capex (capital expenditure) of about USD 100 million this year. Of this, about USD 50 million will be towards marketing and promotion, USD 30 million for headcount and technology and roughly USD 20 million for new initiatives," Aggarwal told PTI.He added that the company has been working on keeping its cash burn low and is hopeful of also hitting profits by the end of the year.Aggarwal said the company has already established presence in three international markets and is looking at growing that further this year.Droom is looking at Indonesia, Philippines and Vietnam in Southeast Asia and the UAE, Oman and Saudi Arabia in the Middle East."While we are aggressively expanding our international presence, we are also deepening our presence within the India market as we believe this will continue to be the mainstay of our business. Less than 10 per cent of our revenues will come from international operations," he said.The company also plans to raise about USD 150 million before it launches an initial public offering (IPO) in 2021.It has so far raised close to USD 125 million in six rounds of funding from investors like Lightbox, Beenext, Beenos, Digital Garage, Toyota Tsusho Corporation, and Integrated Assets Management.Droom had clocked a gross merchandise value of USD 1.2 billion on its platform with a net revenue of USD 32 million in 2019. Its platform processed over 6.1 lakh orders last year. | online automobile marketplace aims to reach USD 120 million in net revenue by 2021. about 50 million will be towards marketing and promotion, according to founder and CEO. about 30 million will be for headcount and technology, and roughly 20 million for new initiatives. company also looking at Indonesia, Philippines and Vietnam in Southeast Asia and the UAE. aims to raise about USD 150 million before it launches an initial public offering (IPO) in 2021. | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/rs-2700-crore-deal-indiabulls-to-exit-realty-biz-with-sale-of-sameer-gehlauts-stake/articleshow/69683994.cms | Others
MUMBAI: The Indiabulls Group is set to exit the real estate business with the sale of cofounder and chairman Sameer Gehlaut ’s 39.5% stake for Rs 2,700 crore to US-based private equity firm Blackstone and its local partner Embassy Group , said two persons with direct knowledge of the development. Indiabulls will turn its focus fully to financial services as it seeks to merge with Lakshmi Vilas Bank The transaction puts an enterprise valuation of Rs 7,000 crore on Indiabulls Real Estate’s portfolio — 23.5 million sq ft of residential projects and 2.4 million sq ft of commercial space under construction.Blackstone already owns 50% of Indiabulls’ commercial portfolio, including two marquee properties in Mumbai’s Lower Parel and Prabhadevi apart from one project in Gurgaon. Blackstone has also acquired the Chennai commercial property developed by Indiabulls Real Estate in its entirety. These include ready and leased properties. “The deal terms have been finalised and the parties are set to execute the same starting tomorrow (Friday),” said one of the persons mentioned above.“The entire transaction will be concluded in three legs, including an open offer as the final phase, and will be done by the end of this year,” the person said.As part of the transaction, Blackstone-Embassy will be acquiring Gehlaut’s 15% stake in Indiabulls Real Estate through an open-market deal on Friday. The remaining stake of about 24% will be acquired in six-eight weeks from now, triggering an open offer.Following this, the Indiabulls Group, which derives over 10% of its revenues from real estate, will focus on financial services.Blackstone, Embassy and Indiabulls Real Estate declined to comment.Gehlaut had told ET in April that he was willing to give up the real estate business for financial services in the context of the group’s proposed acquisition of Lakshmi Vilas Bank. Indiabulls Housing Finance (IHF) and its subsidiary Indiabulls Commercial Credit Ltd (ICC) are proposed be merged into Lakshmi Vilas Bank after a change in the merger agreement announced on the stock exchanges last month.Blackstone and Embassy are planning to keep the realty developer listed as the alliance’s residential platform. This is the first time Blackstone is acquiring a listed real estate company in India.In April, their joint venture Embassy Office Parks listed India’s maiden real estate investment trust (REIT). This has 33 million sq ft of office and hospitality assets, comprising seven business parks and four city-centric buildings in Mumbai, Bengaluru, Pune and Noida. The REIT raised Rs 4,750 crore through the issue that was subscribed 2.58 times.Embassy Office Parks REIT, the listed entity, will hold the right of first refusal on Indiabulls Real Estate’s under-construction commercial portfolio once ready and leased. However, the decision will be taken independently by its board, said the people.Apart from Blackstone, Macquarie and Brookfield Asset Management are also said to have shown interest in acquiring the company. Of these, Macquarie’s proposal involved delisting the company after conclusion of the transaction.Speaking to ET earlier this year, Blackstone Group president Jonathan Gray had underscored the fund’s continued interest in India.“Blackstone’s real estate investments in India have been performing extraordinarily for us and on a global basis, which is one of the reasons why we’re saying publicly that we want to do more here,” Gray had told ET.It has emerged as the most aggressive institutional investor in India’s real estate sector and owns the biggest portfolio of income-producing office assets in the country. It has committed $5.3 billion in the key markets of Mumbai, Noida, Pune, Bengaluru, Chennai and Hyderabad.The US-based multinational private equity, alternative asset management and financial services firm has invested across more than 50 companies in India. It has deployed more capital in India than in any other emerging market, with nearly $10.6 billion invested in private equity and real estate sector. | cofounder and chairman Sameer Gehlaut's 39.5% stake in indiabulls real estate to be sold to blackstone and its local partner Embassy. transaction puts an enterprise valuation of Rs 7,000 crore on indiabulls’ commercial portfolio. blackstone already owns 50% of Indiabulls’ commercial portfolio, including two marquee properties in Mumbai’s Lower Parel and Prabhadevi apart from one project in Gurgaon. | Positive |
https://www.financialexpress.com/opinion/post-covid-recovery-banking-on-remittances/2066500/ | By Prasanna Balachander
A boat ride through the scenic backwaters of Alappuzha, Kerala, is perhaps the best way to understand the positive impact and affluence that inward remittances create to the surrounding economy. Covid-19 has however, unfortunately, brought in to focus this particular aspect of a country’s BOP as a concern area, with the United Nations noting that even “resourceful” and “resilient” remittance families are struggling to tide over this period as livelihoods are lost. India has been a major beneficiary of remittances in the past. In our considered opinion, this is unlikely to change in the long-term, despite Covid.
As per World Bank and ILO reports, remittance flows to Low Middle-Income Countries (LMICs) have nearly doubled over the last decade (see graph), with South Asia accounting for one-fourth of the inflows. India is a major recipient of remittance inflows from its diaspora of over 30 million nationals living and working abroad, forming 60% of flows received by South Asia, and retains the top spot in the world, receiving in excess of $80 billion in inward remittances in 2019.
The relative importance of remittances has grown substantially in recent years; they funded close to 35% of India’s trade deficit last year, more than doubling over a decade (see graph). While gross FDI has risen sharply recently, transfer payments constituted an important source for funding the current account even in the earlier years.
Direction and drivers of remittance flows
What are the key host countries from where these remittances come from?
A study by the Reserve Bank of India showed that India receives nearly three-fourth of its remittance income from the Gulf Cooperation Council (GCC) nations and the US.
Which are the states in India that are a key recipient of these inward remittances?
There are no surprises that, traditionally, the states of Kerala, Tamil Nadu, Maharashtra and Karnataka, have accounted for nearly 60% of India’s remittance receipts. However, this dynamic seems to be changing, with states like Uttar Pradesh, Bihar, West Bengal and Rajasthan emerging as recent entrants (see graph). This would imply that remittances are poised to not only benefit the less-developed states of India over the long run but also have the ability to pull up the overall growth of the country, through higher consumption from these less-developed states.
Remittances through a Covid lens and beyond
What are the factors that have affected the flow of remittances for India?
Remittance flows, over a time horizon, are affected by the stock of the migrant population, fiscal policy stance in host countries relating to the taxation of outward remittances, macroeconomic conditions in source and host economies, and the ease of outward migration. The employment scenario typically tends to be more tenuous for immigrants than for natives in any region at any point of time. For instance, the average unemployment rate for foreign-born workers in the EU-28 countries, in 2018, was nearly double compared to Europeans. Consequently, in a crisis paradigm, immigrants typically tend to be far more vulnerable to loss of livelihoods and income than their native-born counterparts. Cost of remitting funds is also a key factor influencing the size of remittances. A gradual shift toward using digital services (to reduce costs) for remittance transfers is being seen as a big impetus for remittances in the future.
Looking at it through the Covid lens. Covid-19 has created challenges in host countries for sectors that depend on the availability of migrant workers, such as hospitality, retail and wholesale, tourism, transport, and manufacturing. Disruption in livelihoods has seen many international migrants return to home countries, including India.
This could impinge on India’s remittance inflows, with a fall in wages and employment of migrant workers in host nations, followed by a decline in the stock of international migrants (until normalcy returns).
Remittances to India from the Middle East expectedly have a long-term, direct correlation with the price of oil. The economic slowdown affecting the Gulf nations, especially Saudi Arabia and Kuwait, since 2015, has slowed the flow of Indian workers and their income over the past five years. Thus, in addition to the recession-induced by the coronavirus, soft oil prices will weigh on remittances.
Another emergent trend that could impact remittance flows is an anti-immigration sentiment in host countries, with a clamour to stimulate the employment of nationals over immigrants. Anti-migration is likely to find favour in the post-Covid world, as nations struggle to generate adequate employment.
The combination of the above factors is likely to impede out-migration from India for fresh emigrants, as well as those who returned home in the pandemic, consequently depleting the migrant stock, and hence, India’s remittance income over the next one or two years.
Permanent or temporary disruption: Historical lessons
But is this impact likely to be long term? What are the historical lessons for remittances during the crisis? When we look at the pattern of remittances during the global financial crisis (see graph) or the Middle East Respiratory Syndrome episode in 2012, a few commonalities emerge. Firstly, a crisis expectedly causes remittance flows to fall in and around the crisis period, as people lose jobs or take pay cuts to remain employed. Secondly, in the immediate aftermath of a crisis, remittance flows rebound sharply for a quarter or two, as people compensate for the frugal times. Thirdly, after the aforementioned surge, remittances once again normalise to an average level seen before the crisis manifested. Covid-19 will likely be much more severe than the above episodes. But over the longer term is likely to be an iteration of this trend.
Long-term story remains intact
In the long-term, global migration flows are expected to increase significantly, and remittances to countries like India are only set to rise. Factors like income gaps among countries and demographic changes, among others, will reinforce this trend. The already wide income gap between high-income and low-income countries (presently at 54:1) would encourage more migration from the latter. Demographic change will also propel migration, as the working-age population of our nation will continue to rise over the next two decades, thus, contributing positively to the migrant stock. Therefore, the decadal outlook for remittance flows is undoubtedly more promising, when viewed beyond the Covid-19 episode, as the global economy recuperates and rebuilds with an indomitable spirit.
The author is Group Head Global Markets–Sales Trading and Research, ICICI Bank. Views are personal | remittances to low middle-income countries (LMICs) have nearly doubled over the last decade. india is a major recipient of remittances from its diaspora of over 30 million nationals living and working abroad. remittances funded close to 35% of india’s trade deficit last year, more than doubling over a decade. | Positive |
https://www.financialexpress.com/opinion/agriculture-reforms-take-off-good-deal-for-farmers/1960656/ | Agriculture reform in the country got a big boost with the government finally deciding to defang the 65-year-old Essential Commodities Act (ECA), which, by terrorising traders and food processors—and even importers and exporters—ensured that there was no steady buyer of farm produce. In the name of protecting the consumer—the ECA was born in a scarcity economy—the government would impose stocking limits on various commodities and these limits would abruptly be lowered if prices rose.
As a result, an exporter building up stock to export would also be forced to cut them; while export bans were implemented under trade policy, the ECA was also a critical part of the same policy. While announcing the change, finance minister Nirmala Sitharaman said that only in very extenuating circumstances of national calamities—like a famine—would reintroducing these changes be considered. Indeed, since the idea of the ECA is to keep control on prices, there are also other measures the government should be looking at. In the case of rice and wheat, for instance, where FCI maintains a buffer stock—and so much more—stocks could be dumped in the market during exceptional price hikes. An active futures market can also be used for the same purpose.
While several states have amended the APMC Act to allow farmers to sell to non-APMC licencees—arhatiyas—the central government has decided to formalise this. As the finance minister said, in no other good—a two-wheeler, for instance—is a producer told to whom he can sell. Yet, that it is what the APMC Act did—ironically, by governments that continued to swear by the farmer.
A central law is to be brought in to change this; it is not clear whether the states will oppose this, or if they will be able to stall it. Indeed, while states still have the right to prevent crops from moving across their borders, this was also a way to ensure farmers never got the right price. The new law will also free farmers to take their produce to the most lucrative market. In order to encourage competition among mandis, though, the government will have to do more. It will have to ensure that private mandis—set up to competition with the APMC mandis—get subsidised credit and land to create critical infrastructural facilities.
Equally important, the government has said it will create a ‘facilitative legal framework’ to allow farmers to enter into contracts with processors, exporters, aggregators, and large retailers, etc, so that a farmer has some certainty over what prices he will receive. In other words, a legal framework will be made to allow contract farming; as a result, a farmer can lock in on a price before the crop is sown instead of being left to the vagaries of the market.
Indeed, to the extent that the middleman can be cut out from the transaction, the farmer should also find it possible to get a greater share of the final retail price. Over time, as farmers start getting better prices, the government can also think of restricting the scope of its MSP policy as well as compulsory procurement by government agencies that distorts markets, and tries to dictate crop choices to farmers.
Given all the changes announced will hurt established interests, it is likely they will try their best to stall it, so the next challenge for the government will be to ensure the proposed reforms actually go through. A good beginning for the agriculture sector, apart from the moves—both today and earlier—is to invest a lot more in creating physical infrastructure like irrigation, cold storages, etc. | agrarian reform in the country got a big boost with the government finally deciding to defang the 65-year-old Essential Commodities Act. the government would impose stocking limits on various commodities and these limits would be lowered if prices rose. a central law is to be brought in to change this; it is not clear whether the states will oppose this or if they will be able to stall it. | Positive |
https://economictimes.indiatimes.com/markets/stocks/etmarkets-podcast/etmarkets-morning-podcast-telcos-agr-dues-likely-to-rise-sharply-no-us-indo-trade-deal-during-trump-visit-more/podcast/74218934.cms | Transcript
Hello There! Good Morning. Welcome to the ETMarkets Morning podcast. This is Saloni Goel from ETMarkets.com, and here is all the news you need to start your day
The Headlines:
>> Axis Bank set to buy stake in Max Life
>> No Indo-US trade deal during Trump trip
>> Telcos’ AGR dues likely to rise sharply
AND
>> Adani eyes equity exposure in Simplex
And We have more. Stay with us.
Let’s first have a quick glance at how the markets are looking like...
Nifty futures on Singapore Exchange traded 127 points higher at 7am (IST), signalling a possible bounce on Dalal Street. Asian stocks edged up, supported by a fall in coronavirus cases and expectations of more Chinese stimulus to offset the economic impact of the epidemic, while the Japanese yen nursed heavy losses after suffering its steepest drop in six months.
>> MSCI's broadest index of Asia-Pacific shares outside Japan ticked up 0.1 per cent. Buoyed by the cheaper yen, Japan's Nikkei rallied 1.5 per cent. Markets in Australia and New Zealand minted record highs.
>> The S&P 500 and Nasdaq rose to record closing highs on Wednesday as optimism that China would take more measures to prop up its economy eased concerns about the economic impact of the coronavirus epidemic. Dow rose 115.84 points, or 0.4%, to 29,348; the S&P500 gained 15.86 points, or 0.47%, to 3,386, and the Nasdaq added 84.44 points, or 0.87%, to 9,817.
LET ME NOW quickly GO OVER the top news we are tracking this morning.
Axis Bank set to buy big stake in Max Life
Axis Bank, India’s fourth-largest private sector lender in terms of market capitalisation, is set to acquire more than 20% stake in Max Life Insurance through fresh issue of equity. The proposed deal is aimed at building a strategic and long-term relationship with Axis Bank, which contributes more than 54% to Max Life’s revenue, they said. It will also eliminate uncertainty over the insurer having a strong, strategic bancassurance partner, they said. Axis Bank, which currently owns a little over 2% of Max Life, is expected to infuse more than Rs 2,000 crore in the insurer.
Five mutual fund SIPs deliver big returns
Average SIP return for a basket of 139 diversified equity mutual funds over a two-year period has been 7.52%; while for a five-year period it has been 8.59%. Five equity fund schemes have stayed ahead of the pack and SIPs in them have delivered a 14% CAGR over the last five years. Investments into equity mutual funds through SIPs have picked up sharply over the last five years with many new investors coming in. The mutual fund industry has 3.04 crore SIP accounts and is adding 9.81 lakh SIP accounts on an average every month in 2019-20.
No Indo-US trade deal during Trump trip
India and the US have delinked the much-anticipated bilateral trade deal from the forthcoming visit of President Donald Trump, while affirming to continue talks with the larger purpose of eventually moving toward a free trade agreement. “We can have a trade deal with India, but I am really saving the big trade deal for later on. We are doing a big trade deal with India. I don’t know whether we will have it before the election, but we will have a very big deal with India,” Trump said in Washington
Telcos stare at largest AGR dues
The statutory dues of telecom operators — pegged at Rs 1.64 lakh crore — is set to rise sharply with the Department of Telecommunications (DoT) now in the process of calculating dues for FY18 and FY19, officials said. The adjusted gross revenue (AGR) dues of Rs 92,642 crore in licence fees, interest and penalties — which was submitted to Parliament and the Supreme Court — is till FY17. Spectrum usage charge (SUC) dues of Rs 70,869 crore though are updated till January 23, 2020.
NOW, LET’S HAVE A QUICK LOOK AT SOME OF THE TOP CORPORATE NEWS THIS MORNING
>> The Adani Group is in talks with promoters of Simplex Infrastructures to take equity exposure in the latter through a fresh share sale
>> Mortgage lenders such as Tata Capital Housing Fin, Piramal Capital & Housing Fin, PNB Housing Fin and L&T Housing Fin have got nearly 80% of the Rs 15,000 crore secured loans sanctioned by banks in the December quarter.
>> Brookfield, Omers, Mubadala and Abu Dhabi Investment Authority are among the global investors in early stage talks with Tata Power to invest $500-600 million in its renewable energy platform
>> A clutch of PE funds including Apax Partners and Kedaara Capital are in early stages of discussions to acquire US-headquartered information technology and services company CSS Corp
LASTLY a look at OIL,
>> Oil prices rose nearly 1 per cent, extending big gains from a day earlier. Brent crude futures rose 45 cents, or 0.8 per cent, to $59.57 a barrel. | axis bank set to buy big stake in max life through fresh issue of equity. nifty futures on Singapore exchange traded 127 points higher at 7am (IST) nifty futures on shanghai exchange traded 127 points higher at 7am (IST) nifty futures on shanghai exchange traded 127 points higher at 7am (IST) | Positive |
https://www.businesstoday.in/technology/news/whatsapp-rolls-out-payments-service-sending-message-ncpi-nod/story/421223.html | After over two years of long wait, messaging platform WhatsApp has finally rolled out its UPI-based payments service, WhatsApp Pay, for Indian users. "Starting today, people across India will be able to send money through WhatsApp," the company announced today.
WhatsApp said its payments service is designed with a strong set of security and privacy principles, including entering a personal UPI PIN for each payment. The service is available both iPhone and Android apps.
With the launch its UPI-based payments service, WhatsApp now joins the list of GooglePay, PhonePe and Paytm.
The company said this secure payments experience makes "transferring money just as easy as sending a message". WhatsApp's announcement to start payments service came after it received the go-ahead from the Reserve Bank of India's (RBI) National Payments Corporation of India (NPCI) to offer UPI-based digital payments on Thursday.
Also read: NPCI allows WhatsApp to start UPI services with only 5% users
The social media giant said people can now safely send money to a family member or share the cost of goods from a distance without having to exchange cash in person or going to a local bank.
The company had to wait for two years to get the mandatory approval due to data localisation requirements. Facebook founder Mark Zuckerberg, in a video message, said he is glad to support India's digitisation efforts through the UPI platform. "With UPI, India has created something truly special and is opening up a world of opportunities for micro and small businesses that are the backbone of the Indian economy. India is the first country to do anything like this. I'm glad we were able to support this effort and work together to help achieve a more digital India," Zuckerberg said.
The NPCI, the umbrella organisation for operating retail payments and settlements in India, while taking a cautious approach, has allowed WhatsApp to expand its UPI user base in a graded manner, starting with a maximum registered users of 20 million in UPI.
This effectively means that not all WhatsApp users will be able to use payments service in India for now. It can use only 5 per cent of its 400 million users in India for UPI-based payments. The NPCI has not clarified the time period for increasing WhatsApp Pay's user base to higher limits.
"In the long run, we believe the combination of WhatsApp and UPI's unique architecture can help local organisations address some of the key challenges of our time, including increasing rural participation in the digital economy and delivering financial services to those who have never had access before," the Facebook-owned company said.
WhatsApp said it'll work with five leading banks in India, including ICICI Bank, HDFC Bank, Axis Bank, the State Bank of India, and Jio Payments Bank.
How to send money via WhatsApp | WhatsApp has rolled out its UPI-based payments service, WhatsApp Pay, for Indian users. the service is available both iPhone and android apps. it is designed with a strong set of security and privacy principles. the company said this secure payments experience makes "transferring money just as easy as sending a message" the company had to wait for two years to get the mandatory approval. | Positive |
https://www.moneycontrol.com/news/world/barack-obama-to-join-joe-biden-for-first-joint-virtual-fundraiser-next-week-5410291.html | In 2009, Barack Obama became the fourth US President to win the Nobel Peace Prize
Democratic presidential nominee Joe Biden has announced that he will be joined by his "friend" and former US president Barack Obama for the first virtual fundraiser next week.
Biden's campaign announced the reunion of Obama and his former vice president for the fundraiser will be a week from Tuesday.
In a tweet, Biden, 78, announced that his "former boss" Obama would join him next week.
"Folks, I've got some big news: Next week, I'm getting together with my friend and former boss, President Barack Obama, for a virtual grassroots fundraiser. We would love to see you there," Biden said on Monday.
The tweet came hours after the former vice president announced to have raised USD 80.8 millions in the month of May for his campaign war chest.
"I'm proud to announce that last month - with your support - and the support of so many others - we raised USD 80.8 million, with an average online donation of USD 30 to our campaign," Biden said in an email to his supporters.
"These last few weeks have shown that we are a nation furious at injustice. We feel it in our bones; we see it in our streets. On top of that, COVID-19 is still a threat. We've crossed the mark of over 115,000 deaths - 115,000 people whose lives were cut down too soon," he said.
The event plans to target tens of thousands of small-dollar donors.
In a fundraising email to the campaign, Obama described this as the most important election of the lifetime.
"The most important election of our lifetimes is just around the corner. In November, we have the chance to rebuild our economy so that it works for everyone. We have the chance to cover everybody with health insurance," Obama said.
The former president officially endorsed Biden in April after Senator Bernie Sanders, Biden's last serious competitor, dropped out and threw his support behind the former Delaware senator.
"We have the chance to declare that no matter what we look like, where we come from, or who we love - all of us are equal and each of us should have the chance to make of our lives what we will," Obama said.
"This is a critical moment in our history - and we need Americans of all backgrounds and political stripes to join together and fight to create a more just, more generous, more democratic America where everybody has a fair shot at opportunity," he said.
Meanwhile, Biden Victory Fund held a virtual fundraiser with Biden hosted by Senator Elizabeth Warren, Paul Egerman, a retired software entrepreneur, and Shanti Fry, a board member for the National Center for Learning Disabilities.
The fundraiser hosted by Warren was sold out, and brought in USD 6 million, the most successful fundraiser the Biden Victory Fund has ever had.
In his remarks, Biden addressed systemic racism facing the country and asserted that a disproportionate number of black and brown communities were dying from coronavirus.
Biden went on to criticise President Donald Trump's role in rolling back civil rights protections, calling him out by name, and his contribution to the country's current economic state. | former vice president and former vice president will join him for a virtual fundraiser. the event plans to target tens of thousands of small-dollar donors. the event plans to target tens of thousands of small-dollar donors. the event plans to target tens of thousands of small-dollar donors. a spokesman for the campaign says the event is a "very positive step" | Positive |
https://www.financialexpress.com/industry/oil-psus-to-re-start-over-rs-42000-cr-of-projects-as-lockdown-restrictions-ease/1934457/ | State-owned oil firms will resume as many as 511 projects involving over Rs 42,000 crore of investment with immediate effect as the country partially exited from an unprecedented nationwide lockdown on Monday.
Oil and Natural Gas Corp (ONGC), Indian Oil Corp (IOC), GAIL, Oil India Ltd and six other public sector firms identified projects that either in rural areas or have in situ labour for the resumption of work, oil ministry sources said.
The government had last week allowed makers of information technology hardware, farmers and industries in rural areas to resume operations as it looked to revive the economy that got stalled because of the outbreak of coronavirus pandemic.
As many as 319 projects with these 10 PSUs are completely in rural areas and resuming work on them will not be much of a problem. Another 192 projects are within municipal limits but have in situ labour, they said.
In FY2020-21, these projects would involve an expenditure of over Rs 42,000 crore. The restarting of these projects that spread from oil and gas exploration and development work to refinery jobs, gas pipeline laying and city gas distribution network expansion, will generate around 7 crore man-days of employment, they said.
These projects include 196 projects of IOC, 168 of Bharat Petroleum Corp Ltd (BPCL), 57 of Hindustan Petroleum Corp Ltd (HPCL), 32 of GAIL and 26 projects of ONGC.
The sources said these projects involving refinery, exploration and production, marketing infrastructure, pipeline and city gas distribution are expected to generate Rs 2,210 crore of payout in the first month. Out of this, Rs 266 crore will be paid to labour.
These projects, they said, are in line with the Ministry of Home Affairs guidelines and are assessed on the ground of manpower availability and other municipal restrictions. | ONGC, IOC, GAIL, Oil India Ltd and six other firms will resume projects. the government has allowed makers of information technology hardware to resume operations. the government has allowed farmers and industries in rural areas to resume operations. the restarting of these projects will generate around 7 crore man-days of employment. ONGC says it is a "very positive sign" that the country is out of a nationwide lockdown. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/psus-it-cos-led-buyback-charge-in-past-2-years/articleshow/63474679.cms | Mumbai: Government and software companies contributed to a healthy surge in buybacks in the past two years with 2017/18 ending as the best year in share purchases by companies since 2009, data shows. India Inc , led mainly by IT companies, has spent a record Rs 52,350 crore in the current financial year to buy back shares higher than the Rs 34,000 crore spent in 2016/17. The sensex rallied 15 per cent in the year but IT companies spent quite a bit of time last year in the doldrums weighed down by slowing growth and the problems at Infosys , the Bengaluru-based tech bellwether.About 56 companies launched share repurchase programmes this financial year, worth Rs 52,350 crore, 54 per cent higher than the previous year. IT companies dominated the process with Tata Consultancy Services TCS ) spending nearly Rs 16,000 crore while Infosys bought back shares worth Rs 13,000 crore. Wipro and HCL Technologies too bought back shares worth Rs 11,000 crore and Rs 3,500 crore.“Dividend distribution tax, additional dividend tax and lack of expansion plans have prompted managements to spend their cash reserves to buy back shares to improve book value of their companies,” said Sanjiv Bhasin, EVP markets, IIFL. “Also, Indian software companies which are finding it difficult to grow contributed the most to the buybacks”.The government introduced additional dividend tax from April 1, 2016, in which dividend received in excess of Rs 10 lakh was taxed at 10 per cent at the hands of the recipient. This is in addition to the dividend distribution tax (DDT) which the company already pays.Low rates of growth of fixed asset creation would also have contributed to though most big manufacturing companies have stayed away from buybacks, except for government firms. Gross fixed capital formation as per cent of GDP for the economy has been coming down over the years and as per CSO’s first advance estimate for FY18 is expected to decline further to 26.4 per cent. In FY16 it was 29.3 per cent. The ratio was as high as 34.3 per cent in FY12.Over the past few years, companies also have stopped diverting capital to business-enhancing activities like capex spending due to slowdown in demand. New investment proposals during calendar 2017 was Rs 7.9 trillion –– much lower than the Rs 14.5 trillion worth of new investment proposals seen during calendar 2016 or Rs 15.3 trillion recorded in 2015, according to CMIE data. In 2014, these added up to Rs 16.2 trillion.About 12 state-owned companies launched buybacks in the current fiscal to meet the divestment targets, instead of investing in expansions.“Though the government’s share in capex increased after 2012, its role was never sufficiently counter-cyclical. It did not offset the fall in private investments,” said Mahesh Vyas, CEO, CMIE. “As a result, today, both public and private sector investments are at their decadal lows”. | 56 companies launched share repurchase programmes this financial year. IT companies dominated the process with Tata Consultancy Services. spending nearly Rs 16,000 crore while Infosys bought back shares worth Rs 13,000 crore. Wipro and HCL Technologies too bought back shares worth Rs 11,000 crore and Rs 3,500 crore. a total of 69,016 shares were bought back in the last 12 months. | Positive |
https://www.financialexpress.com/jobs/job-seekers-alert-heres-the-gold-mine-you-should-explore/1165252/ | Global technology major IBM has said there is a massive shortage of cyber security professionals in the country, urging young graduates to look this segment, which is a high-margin segment for companies, as a lucrative career option. The company, which looks at India both as a market as well as a talent pool to serve the global markets on cyber security, said a whopping 3 million cyber security professionals are required in the country but the supply is not even 1 lakh now, Kartik Shahahni, integrated security leader for IBM India and South Asia, told PTI here. “Can I find people, yes I can. But can I find enough number of people? There is obviously an opportunity for more number of people than we actually have now,” Ananda K Vaideeswaran, director and global integrated leader, chipped in saying.
Shahahni explained that security solutions currently contributes in “double-digit percentages” to IBM India’s revenue at present, whereas its share of the total staff is much smaller. Stating that the cyber security professionals are “more productive” as it is a margin accretive vertical, he said, “the amount of revenue a security professional can bring to us is far higher than the amount of revenue a non-security professional can.” The comments come amid rising concerns about the information technology sector from a workforce intake perspective. As more and more tasks get automated with the advent of newer technologies such as artificial intelligence and machine learning, fewer number of people are required by the USD 160-billion domestic IT sector to do the same work compared to the past when the industry was one of the leading job creators absorbing millions annually.
The IBM executives declined to give a clear answer whether cyber security can emerge as a much-needed succour from an employability perspective, but explained that different skillsets and approaches are required for grabbing such jobs. Vaideeswaran said there is a need for changes from the school and graduation level to the post-graduate level, which will help the industry get the right kind of people. For those who do look at cyber security, there is a need to look beyond ethical hacking, he said, adding this branch represents only 5 per cent of the security needs. “Not enough youngsters look at cyber security as a job opportunity.
That is probably an area where we can do a lot as an industry,” he said. He said IBM has been working with universities and tech schools to get the necessary manpower for its the business, and also works with the Data Security Council of India and industry lobby Nasscom on the same front. IBM India has tied up with Mody University of Science & Technology, Rajasthan, Dehradun Institute of Technology, Chandigarh University and Geethanjali College of Engineering & Technology, Hyderabad amongst others, a company spokesperson said. | technology giant says there is a massive shortage of cyber security professionals. urging young graduates to look at this segment as a lucrative career option. comments come amid rising concerns about the information technology sector. fewer number of people required by USD 160-billion domestic IT sector. but execs say different skillsets and approaches are required for grabbing such jobs. | Positive |
https://www.moneycontrol.com/news/business/markets/a-morning-walk-down-dalal-street-tread-with-caution-as-momentum-could-fizzle-out-2875411.html | live bse live
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A strong day for Indian markets but traders preferred to book profits at higher levels. But, benchmark indices managed to end at a fresh closing high on Thursday.
Nifty hit 11600 for the first time in history. This was the 25th time when Nifty ended at a record closing high in 2018.
Traders become cautious after Beijing implemented new retaliatory tariffs against the United States. China officially retaliated against fresh duties, worth USD 16 billion, from the United States.
Things which could act as a spoiler for Indian markets is rupee which closed above Rs 70/USD and crude oil prices which rose for the fifth consecutive session on Thursday.
With the rupee once again reclaiming the Rs 70/USD mark analyst feel that IT and pharma companies will tend to benefit.
The index is facing resistance as it is approaching the key level of 11640.
The Nifty is likely to find support near 11,500-11,480, which is close to the lower end of the rising channel and the recent gap area on the daily chart.
Big News:
The Nifty hit 11600 for the first time in history
Nifty hit 11000 for the first time in January 2018 and it hit 11500 just last and now we are standing near 11600 levels
Over 50 stocks hit a fresh record highs along with Nifty50 in August which include names like RIL, TCS, Infosys, M&M, Yes Bank, IndusInd Bank, Bajaj Finance and Bajaj Finserv.
As many as 49 stocks which hit record high in August gave 10-200 percent return in 2018
Three stocks which more than doubled investors wealth include names like Indiabulls Ventures, Merck, and NIIT Technologies.
Technical View:
Nifty formed a Hanging Man kind of pattern on daily charts
Investors are advised to tread with caution as the pattern suggests that the momentum could be fizzling
If Nifty forms a bullish candle on Friday, it will negate the negative impact of Hanging Man
Three levels: 11485, 11600, 11640
Max Call OI: 11600, 11500
Max Put OI: 11500, 11300
Technical Recommendations:
We spoke to IIFL and here’s what they have to recommend:
United Breweries: Buy| Target: Rs 1570| Stop Loss: Rs 1397| Return: 8.1%
Ashok Leyland: Buy| Target: Rs 145| Stop Loss: Rs 126| Return: 10%
HCL Technologies: Buy| Target: Rs 1112| Stop Loss: Rs 986| Return: 8.3%
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. | the benchmark indices managed to end at a fresh closing high on Thursday. the rupee closed above Rs 70/USD and crude oil prices rose for the fifth consecutive session. the index is likely to find support near 11,500-11,480. this is close to the lower end of the rising channel and the recent gap area on the daily chart. as many as 49 stocks hit a fresh record highs along with Nifty50 in August. | Positive |
https://www.financialexpress.com/economy/50-days-of-modi-2-0-govt-presents-report-card-says-walking-the-talk-on-promises/1652056/ | Presenting a report card after completing 50 days in office, the Modi government on Monday said it is already “walking the talk” on the promise of rapid development and the pace of reform in its second term has increased as compared with the previous tenure. Information and Broadcasting Minister Prakash Javadekar presented the the report card and achievements of the government, asserting that “speed, skill and scale” have been manifested in the first 50 days of its second term.
He said that the government has hit the ground running for the welfare of all sections of the society, including farmers, traders, small businesses, unemployed youth and middle class.
Javadekar said the country has felt assured that the pace of reforms, welfare and justice to all has increased as compared to the first term.
Prime Minister Narendra Modi was sworn-in on May 30 after the BJP won 303 seats — the first time since 1971 that an incumbent government returned to power with such a thumping mandate.
The target of USD 5 trillion economy is not just a dream but a roadmap has been given for it, Javadekar told reporters.
He asserted that the first 50 days have shown that Modi government’s second term will be more effective and will build on the success of its previous tenure.
The government has taken historic decisions which shows a clear roadmap of faster development in infrastructure, social justice and education, he said.
Javadekar expressed confidence over the successful launch of Chandrayaan-2 and added that India’s manned mission to space, Gaganyaan, will be launched in 2022.
The prime minister’s presence on world forum has made a difference to India’s influence over world politics, the minister said.
“With Rs 100 lakh crore of investment to be made in roads, railways, ports, airports and other infrastructure, the formation of Jal Shakti ministry, the mission to reach out to every house by 2024 with assured water supply, we are walking the talk with speed and many historical decisions,” he said.
Citing the setting up of a national research foundation, giving labour, particularly unorganised labour, and small and medium-sized enterprises required help for flourishing, he said these efforts will not only increase the employment opportunities, but also ensure justice and welfare for all sections of the society.
He also expressed confidence that the government will achieve its dream of becoming a USD 5 trillion economy in the period in which it has decided to achieve the target.
In the coming five years, new investment opportunities will be provided, Javadekar said.
“Investment will come from across globe. In 50 days so much has been done for all sections of the society that people are assured of what Modi had said after assuming power that ‘sabka saath, sabka vikas, aur sabka vishvas’ (with all, development for all, with everyone’s trust) and fast-paced development,” he said.
“People have seen action on this vision. Speed, skill and scale have been manifested in the 50 days. Farmers, soldiers, youth, labourers, middle class, traders, taking India forward, taking India’s relations with neighbours forward, investment, development of resources, fight against corruption and social justice, have been the highlights of 50 days,” he said.
Listing the achievements of the government in the first 50 days in office, Javadekar said important developments were Rs 6,000 assistance to all farmers, increase in Minimum Support Price of several crops by two-three times, and 10,000 farmers organizations being formed.
He said changes in labour code will benefit 40 crore informal sector workers through wage and labour security.
The minister also highlighted steps taken to boost investment in the country such as Rs 70,000 crore provided for Public Sector Banks (PSB) recapitalisation and a separate TV channel for start-ups to be launched.
He also underlined the success of steps taken by the government in reducing the impact of separatists in Jammu & Kashmir.
The prime minister’s first decision after assuming office for the second term was for children of slain military and police personnel, giving scholarship to them.
Among other achievements of the government, he cited pension for traders, tax benefit for the middle class, and benefits of home loans interest and the GST.
The minister said there is a massive push in the direction of making India a 5 trillion economy, with several measures announced in the budget from assistance to banks to corporate tax benefits.
Javadekar also highlighted government’s crackdown on economic offenders and efforts to bring back those who are wanted, but have fled the country. He also talked about the government bringing a bill to crackdown on ponzi schemes.
The resolve of reform, welfare and justice for all has been the driving force for the government, he said. Javadekar also talked about the decisiveness of government in safeguarding children against sexual crimes through amendments to POCSO Act. He hailed the steps taken to reform medical education in the country. | the government has hit the ground running for the welfare of all sections of the society. the government has taken historic decisions which shows a roadmap of faster development. the government has also set up a national research foundation. a manned mission to space, gaganyaan, will be launched in 2022. the prime minister was sworn-in on may 30 after the BJP won 303 seats. | 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/policy/urjit-patel-quits-rbi-citing-personal-reasons/articleshow/67034737.cms | Apple Rings Louder: Sept Qtr Sees Record Revenue in India Apple Inc set a new quarterly revenue record in India with a strong double-digit year-on-year growth in the September quarter, chief executive Tim Cook said on Friday, adding that the world’s second-largest smartphone market is a key focus for the Cupertino, US-based company where it currently has a low share.
Young & Restless Driving Change at Motown’s Luxe St Luxury car buyers in India are getting younger with two out of five Audi buyers aged less than 40. At Mercedes-Benz India, buyers have an average age of 38 years, the youngest for the German luxury carmaker globally. The scenario is similar at BMW India where consumers aged 35-40 contribute bulk of the sales. | apple set a new quarterly revenue record in india with a strong double-digit year-on-year growth in the September quarter. the world's second-largest smartphone market is a key focus for the cupertino, us-based company where it currently has a low share. luxury car buyers in india are getting younger with two out of five Audi buyers aged less than 40. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/liquor/online-home-delivery-will-make-liquor-more-accessible-to-women-buyers-united-spirits-ltd/articleshow/76403079.cms | MUMBAI: United Spirits Ltd., India’s biggest liquor company with a brand portfolio that includes Johnnie Walker and McDowell, said home delivery and online sales will not just expand the basket size but also help more women consumers.“In many states, women do not want to go into a retail store to buy alcohol – it’s just unpleasant. In fact, I would go to the extent of saying they feel unsafe. If you are ordering online, you will browse and you will buy what you want,” Anand Kripalu , managing director at the Diageo-controlled company, told investors during an earnings call.For the spirits industry, accessibility is one of the biggest barriers for consumption in a market with 75,000 retail outlets , compared with over 10 million stores for fast moving consumer products. Also, after the lockdown, several stores have restricted the entry of people by placing counters in front, which could alter the display of products.“When you start browsing in a retail store, you end up buying more than you did in an over-the-counter store. The day you start browsing on Amazon or Flipkart, you start buying a lot more things than you did and you are able to double click and get a lot more details,” Kripalu added.Many state governments that lost revenue during the lockdown tried to boost their coffers with a tax increase after the Centre allowed liquor shops to open in the first week of May. At present, two-thirds of the retail outlets have re-opened and initially saw massive queues outside outlets. Yet, sales volumes plummeted by 33% to 90% last month in five markets that account for 40% of the country’s spirits segment due to the high taxes on liquor.Almost a dozen states including Maharashtra, West Bengal, Delhi, Punjab and Tamil Nadu have allowed home delivery of liquor, something companies have been trying to unlock for many years. Also, Zomato and Swiggy now deliver alcohol in some states.“Online can help companies plan activities around product development as new audience and channels can provide additional insights on changing consumption behaviour,” said Devendra Chawla, managing director of Spencer’s Retail and Nature’s Basket, which have been selling spirits for several years and started online and home delivery through select stores.Also, the government and companies are making sure the new delivery model doesn’t bypass traditional retailers, which paid high licence fees to enter the business.“You can’t have an Amazon kind of model in this industry because the outlets are so few and they have paid high licence fees to exist. And I don’t think any excise department will easily create a model that will destabilise the retailer themselves,” said Kripalu. | a dozen states including Maharashtra, west Bengal, Delhi, Punjab and Tamil Nadu have allowed home delivery of liquor. a number of companies are also launching online and home delivery. the government is also making sure the new delivery channels are available. the lockdown has also affected the access of people to the stores. a number of stores have placed counters in front of customers. | Positive |
https://www.moneycontrol.com/news/business/companies/coronavirus-lockdown-2-0-guidelines-appliance-makers-to-resume-operations-5150111.html | Appliance makers are all set to resume manufacturing operations from April 20 onwards with the government partially easing the lockdown for production units across India.
In its list of guidelines, the Ministry of Home Affairs said manufacturing and industrial establishments in special economic zones, export oriented units, industrial townships and industrial estates will be allowed to operate from April 20 if they fall under non-containment zones.
The government has taken steps to ease conditions for the manufacturing sector to resume operations. The steps include allowing industries outside limits of municipalities and municipal corporations to start operations, freeing up transportation of goods and setting guidelines for the movement and stay of labour.
Also Read: Live updates about Coronavirus outbreak in India
The guidelines were released by Ministry of Home Affairs on April 15. However, the countrywide lockdown to contain the spread of novel coronavirus, or COVID-19, has been extended to May 3.
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
With this, manufacturing can be resumed in industrial zones. Summer season accounts for the bulk of sales for products like air coolers, air conditioners and refrigerators. Moneycontrol had earlier reported that consumer durables firms were facing challenges due to the near shutdown in production.
Halt in production has also led to severe losses for appliance makers across the country. However, clarity in awaited on import of crucial parts like air compressors and open-cell for LED panels from markets like China.
Manish Sharma, President and CEO, Panasonic India, said the guidelines issued on April 15 are supportive and in favour of ensuring business continuity to some extent.
"As our factory in Jhajhar, Haryana is in the green zone, we are hoping to receive permission to start manufacturing soon. Summers are here and while we have enough inventory of ACs and refrigerators to meet consumer demands, we would like to start operations to ensure sustainability over the longer term. We are prepared for staggered operations with workers coming in batches while ensuring social distancing, frequent sanitising, usage of masks among other initiatives to protect our workforce," he added.
White goods firms, in particular, had requested some flexibility during the lockdown to ensure that manufacturing units are allowed to function. More than 90 percent of the manufacturing units are located in industrial clusters in the outskirts of major Indian cities.
As per the standard operating protocol of MHA, manufacturing units have been asked to make arrangements for stay of workers within the premises of the unit or in adjacent buildings. Transportation of workers also needs to be arranged by their respective companies.
Avneet Singh Marwah CEO of Super Plastronics (exclusive brand licensee of Thomson TVs in India) said, “It is a welcome move for the industry, Thomson TV will follow all operating procedures recommended by the government. We are installing human sanitisation machines, all the labour will stay inside the unit. e-commerce operations were really important for non-essential goods as India is a huge replacement market."
MHA has allowed e-commerce companies to also operate during the lockdown period. For appliance makers, e-commerce platforms are an important source of distribution.
Follow our full coverage of the coronavirus pandemic here. | government has taken steps to ease conditions for manufacturing sector to resume operations. lockdown to contain spread of novel coronavirus, or COVID-19, has been extended to may 3. a vaccine works by mimicking a natural infection. a vaccine can be used to protect against future COVID-19 infection. a vaccine can also help quickly build herd immunity to put an end to the pandemic. | Positive |
https://www.moneycontrol.com/news/business/startup/swiss-based-est-group-plans-to-invest-250-million-into-indian-startups-in-next-18-months-4482641.html | Swiss-based EST Group on September 27 said it is planning to invest USD 250 million (around Rs 1,770 crore) in next 18 months into Indian startups that are focused on fintech applications and related business models.
The group is very bullish about India market and believes that when markets are slow they provide new opportunities, its chief executive officer and director Sindhu Bhaskar said in a statement.
"India's largest asset is its intelligent and educated human capital and it is important to use these resources by allowing them to innovate in a problem area and then giving access to capital," he added.
"EST Group is planning to invest USD 250 million in next 18 months into India-based startups focused on fintech applications and related business models that will plug into larger EST's vision of building an aggregated platform for capital that will allocate impactfully to help growth sectors in our economy," the statement noted.
Sajid Jamal, who is heading the venture fund of EST Group, said capital is not scarce but scattered and EST's vision is to aggregate unused capital by investing in technology and then use AI (artificial intelligence) voice command technology to disburse capital to SMEs, startups and agriculture verticals.
"For this, we have decided not to start from scratch but to invest in existing platforms and then connect this platform to one larger ecosystem platform that will help in enhancing growth in the economy by solving grassroot problems of the economy," he added.
EST Group provides financial advisory, asset management, semi banking operations, custodial, clearing and settlement and security issuance services. It has operations in Latin America, Europe, London and Southeast Asia.
The group's fintech arm recently established in London is looking at investing in existing disruptive platforms in financial markets, banking operations, and wealth management using AI, machine learning and blockchain technology. | EST Group is planning to invest USD 250 million (around Rs 1,770 crore) in next 18 months. the group is bullish about India market and believes when markets are slow they provide new opportunities. EST's vision is to aggregate unused capital by investing in technology. the group's fintech arm recently established in London is looking at investing in existing disruptive platforms. | Positive |
https://www.moneycontrol.com/news/business/economy/easing-local-sourcing-norms-in-single-brand-retail-to-help-companies-firm-up-investments-experts-4174671.html | The government's decision to relax local sourcing conditions for foreign direct investment (FDI) in single brand retail trading would provide a certainty to companies that are looking to invest in the sector, experts say.
Deloitte Partner Anil Talreja said, while it would depend on the exact details of the relaxation of sourcing norms, the announcement is clearly laying out the carpet once again for the global single brand retail companies in India.
Many of these companies were sitting on the border in a dilemma over investment in the Indian market on account of difficulty in meeting these sourcing conditions, he said
"These companies will certainly have to re-look at their strategy to tap the large Indian consumption potential. It would now be a race for all these retail companies to evaluate the conditions and take a quick decision to invest into India," he said.
India Cellular and Electronics Association Chairman Pankaj Mohindroo said that single brand retail adds to the country's economy and does not in anyway upset the equilibrium of the organic retail.
"By its core character, single brand retail promotes the brand, enhances retailing standards, keeps the sanctity of price which does not exert predatory pressure on our small retailers intact," he said.
The government Friday proposed to further relax FDI norms in the single brand retail sector with a view to attract more overseas investment.
Finance Minister Nirmala Sitharaman in her Budget speech said "local sourcing norms will be eased for FDI in single brand retail sector".
It has also proposed to consider relaxation in the FDI norms in sectors such as aviation, media, AVGC (animation, visual effects, gaming and comics) and insurance.
Commenting on this, Jehil Thakkar, Partner, Deloitte, said greater investment in media and animation services is key to taking advantage of the opportunities created by the drop in data charges.
"Greater investment in animation will also serve to make India a hub for animation and visual effects globally," he added. | single brand retail will be able to attract more overseas investment. the government has proposed to relax local sourcing norms for foreign direct investment. the announcement would provide a certainty to companies looking to invest in the sector. the single brand retail sector is a key sector for the global single brand retail industry. a number of companies are struggling to meet sourcing conditions in the country. | Positive |
https://www.financialexpress.com/market/commodities/gold-prices-hit-record-high-today-surge-25-in-two-months-should-you-buy-sell-or-hold-yellow-metal/1962485/ | Gold prices in India hit a fresh record high for the second day in a row on Monday, tracking global rates in the international market. As US-China trade tensions escalated and the impact of coronavirus pandemic on the economy continued to worry investors, gold prices surged. Gold prices have risen 24.45 per cent to Rs 47,929 per 10 grams from its March low of Rs 38,500. “Gold has emerged as one of the best performing asset classes in 2020, gaining 15% year to date with prices hitting an all-time high in India,” Ajay Kedia, MD, Kedia Advisory told Financial Express Online. “The buying spree has continued in 2020 as well on increasing fears of recession due to the coronavirus pandemic,” Kedia added.
On MCX, the gold June futures were trading at Rs 47,860 per 10 grams, up Rs 479 or 1.01 per cent, While silver July futures were ruling Rs 1,580 or 3.38 per cent higher at Rs 48,298 per Kg. Silver prices have gained around 44 per cent from its March low of Rs 33,580 per kg. “In international market gold was trading above its 7-year high level of $1760. As expected, safe-haven demand supported the gold prices,” Anuj Gupta, Deputy VP- Commodities & Currencies Research, Angel Broking Ltd, said.
Globally, spot gold was up 0.9 per cent at $1,756.79 per ounce. US gold futures gained 0.5 per cent to $1,765.70. SPDR Gold Trust holdings, the world’s largest gold-backed exchange-traded fund, rose 0.8 per cent to 1,113.78 tonnes on Friday. Palladium slipped 0.5 per cent to $1,892.25 per ounce. Among other precious metals, Platinum gained 0.7 per cent to $803.19, while silver rose 2 per cent to $16.96.
Gold to touch Rs 50,000 per 10 grams this year
“We remain bullish on gold over the longer term as concerns of sustained global economic growth continue to linger,” Kedia said. He further advised that investors can look for the investment in the yellow metal as gold will continue to hog the limelight. “It will remain a reliable hedge against inflation and store of value against ever depreciating paper currencies. Internationally, we see gold to test a level of $2000 soon in 2020 while on MCX, prices can see Rs 50k,” he added. | gold prices hit a fresh record high for the second day in a row on monday. gold prices have risen 24.45 per cent to Rs 47,929 per 10 grams from its March low of Rs 38,500. silver prices have gained around 44 per cent from its March low of Rs 33,580 per kg. spot gold was up 0.9 per cent at $1,756.79 per ounce. | Positive |
https://www.financialexpress.com/market/sebi-board-meet-regulatory-norms-for-fpis-tweaked/1682637/ | The Securities and Exchange Board of India on Wednesday announced that its board had approved to ease the regulatory framework for foreign portfolio investors (FPIs). Not only would these changes make life easier for FPIs, but would also enable a new class of investors to invest in India. The FPI regulations have been revised based on the recommendation of a committee headed by former Reserve Bank of India deputy governor HR Khan.
Under the new framework, FPIs would now be classified into two categories instead of three. It also removed broad-based eligibility criteria for institutional FPIs to “simplify and expedite” the registration process of FPIs. Any entity which had to meet the broad-based criteria needed to have at least 20 investors with investment of no more than 49%, with certain exceptions. With these changes the market has opened up to an entirely new class of FPI investors.
Government entities too would now be able to register as FPIs, which could see an entirely new class of FPI investors coming to India. The regulator said, “Considering that the central banks are relatively long term, low risk investors directly/ indirectly managed by the government, the central banks that are not the members of BIS (Bank for International Settlement) shall also be eligible for FPI registration.”
Foreign investors have sold Indian equities to the tune of $3.2 billion since July 2019, following the new tax regime announced in the Budget last month. Experts believe that the new framework would give a boost to the FPI route. In a bid to make the process of registration less tedious, the markets regulator has simplified documentation requirements for KYC. And in a move that would give momentum to registrations at the International Financial Services Centre, Sebi has said that entities established there would be deemed to have met jurisdiction criteria.
Shruti Rajan, partner, Cyril Amarchand Mangaldas, said that relaxing the broad-based criteria would open up the FPI route to a whole new category of entities who were unable to meet the 20 investor test. Earlier, entity which had to meet the broad-based criteria would have needed to have at least 20 investors with investment of no more than 49%, with certain exceptions. At the same time, experts believe that the fine print would tell what limitations have been imposed on FPIs now that one category of FPIs has been entirely done away with. For instance, can all Category II FPIs issue ODIs is something that needs further clarity.
Read| Growth, inflation trends demand fresh approach: Shaktikanta Das
The markets regulator has said that requirements for issuance and subscription of offshore derivative instruments (ODIs) had been rationalized. Experts believe this is the most interesting part of the release, as it has historically been a matter of debate within the industry and, Rajan believes, it will be interesting to see what changes are finally implemented.
Currently, the ODI business is regulated strictly, even though it is an entirely offshore product to prevent unlicensed entities to have access to ODIs. Entities that subscribe to ODIs face multiple restrictions, including being a regulated entity in their home jurisdiction. So now, with the FPI route being broadened, the sense is the government wants direct investors to come into the market and not do business through ODIs. It needs to be clarified what changes have been made to rationalise issuance of ODIs and whether these changes will help the ODI business.
In addition, Sebi has also allowed offshore funds floated by domestic mutual funds shall be allowed to invest in India after registering as FPIs. According to Pradeep Kumar, CEO of Union Asset Management Company, this can help Indian mutual funds raise money overseas to invest in India. The regulator has also decided to give flexibility to mutual funds to invest in unlisted nonconvertible debentures (NCDs) up to a maximum of 10% of the debt portfolio of the scheme subject to such investments in unlisted NCDs having simple structures.
The markets watchdog has also reviewed the norms for buybacks. While continuing with its current approach the company not breaching its equity ratio of 2:1 post buyback on standalone and consolidated basis, it has taken into account subsidiaries non-banking subsidiaries and housing finance companies (HFCs). At the consolidated level equity ratio would have to be 2:1 after excluding NBFCs and HFCs. | the changes would make life easier for foreign portfolio investors (FPIs) they would also enable a new class of investors to invest in India. the market has opened up to an entirely new class of FPI investors. the changes were approved by the securities and exchange board of india. the new framework would also open up the FPI route to a whole new category. | Positive |
https://www.moneycontrol.com/news/business/exclusive-idbi-bank-looking-to-raise-upto-rs-5000-crore-this-fiscal-suresh-khatanhar-dmd-5343241.html | live bse live
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On May 30, IDBI Bank posted a net profit of Rs 135 crore for Q4FY20 after 13 straight quarters of net losses. The bank had posted a net loss of Rs 4,918 crore in the corresponding period last year. Saddled with high NPAs, IDBI Bank was rescued by the Life Insurance Corporation of India (LIC) last year.
In January 2019, LIC completed acquisition of 51 per cent controlling stake in the lender. The state-owned life insurer infused Rs 21,624 crore into the bank.
The bank has now turned the corner and hopes to be out of Reserve Bank of India's Prompt Corrective Action (PCA) framework soon, said Suresh Khatanhar, Deputy Managing Director of IDBI Bank, in an exclusive interview with Moneycontrol.
Edited excerpts:
Q. IDBI Bank is back in the black after several quarters. When do you expect to come out of PCA?
A: We are keeping our fingers crossed. IDBI Bank has achieved all critical parameters to come out of the PCA. We have demonstrated a strong balance sheet this quarter. We had made a request to RBI to remove the bank from PCA just before the lockdown and in mean while we have declared Q4 results. It is our duty and responsibility to report to the regulator about improvement in numbers. We are very hopeful.
Q. There is general uncertainty in the industry about economic revival. What is your outlook?
A. We have relief measures (from RBI) available upto September. So till, September, there is no issue. After September, we have to see how things evolve. Already there are relaxations for small businesses to operate. Third quarter should show some good economic activity. Government has given Rs 90,000 crore to discoms also. So, this money should come to the system.
Q. What is the plan of action for IDBI Bank now?
A. We have positioned ourselves as a retail bank. Retail already comprises 56 percent of our books. We will continue to march ahead in that segment. Secondly, we are fine-tuning our strategies further for higher productivity and higher profitability. Every penny saved is a penny earned.
Q. What are the plans to raise capital? Will LIC put in more money?
A. We already have sufficient capital. but being a financial institution, we may need capital for growth. We are evaluating some options to raise capital this fiscal. These include from the government, LIC or may be through a QIP (qualified institutional placement). We will wait for a quarter to see how the scenario is panning out, including fresh delinquencies. We may be looking at raising growth capital in the range of Rs 5,000 crore.
Q. Are you worried about the legacy issues?
A. All our legacy issues are over. Large NPA bases are cleared. In retail, risks are diversified. The balance sheets now look really strong. We have a provision coverage ratio of 94 percent. We have used our PCA period really productively and effectively. We have gone through all pain points and are prepared to bounce back.
Q. Both government and RBI have announced measures to help borrowers during COVID-19. How is the implementation progressing?
A. These are very proactive and need-based measures from RBI and government. Liquidity is impacted and these measures shall help.
That has to be provided either through the postponement of debt payments or by providing additional amount. Banks are taking up these measures with the required importance. The only challenge for us was to reach out to the customers during lockdown. People don't often respond. Still we are making our attempts.
Q. Who are opting for moratorium?
A. Some borrowers want to preserve capital and hence want to opt for the moratorium while some have genuine cash flow issues. Both these categories have opted for moratorium. So far, we have 68 percent of the retail book under moratorium and 60 percent on the institutional side. We offered the scheme to everyone and gave an opt-out option for them.
Q. There were some concerns among NBFCs about moratorium scheme availability from banks
A. When RBI announced moratorium facility on March 27, they never stopped anybody from availing the facility. The RBI never said don't give moratorium to MFIs or NBFCs. RBI said banks are permitted to allow the scheme. Now, this is within the discretionary power of the bank. So, some banks did not offer this facility to NBFCs and MFIs.
Q. The government has announced loan scheme for MSMEs. How do you look at it?
A. We have already identified all the eligible borrowers and started approaching them. This scheme became necessary for the revival of the economy with respect to small companies. That's why the government has announced these loans with 100 percent guarantee. Some companies feel they have adequate liquidity and do not need further capital. Except those people for others, we are working out the details. The loan is "upto" 20 percent of the outstanding loan as on February 29.
Q. Have you issued any loans under this scheme so far?
A. Yes, we have already started giving loans under the scheme, although not very big amounts.
Q. What percentage of your MSME borrowers have started asking for this?
A. The scheme just started. We will have to wait and see how many clients approach us.
Follow our full coverage of the coronavirus outbreak here | IDBI Bank posted a net profit of Rs 135 crore for Q4FY20 after 13 straight quarters of net losses. the bank was rescued by the life insurance corporation of india last year. the bank has now turned the corner and hopes to be out of the Reserve Bank of India's Prompt Corrective Action (PCA) framework soon. | Positive |
https://www.financialexpress.com/market/top-midcap-smallcap-gainers-these-stocks-rally-up-to-20-today-beat-sensex-nifty/2082870/ | Following SEBI’s ruling on multicap funds, the broader markets beat the equity benchmarks BSE Sensex and Nifty 50 today. S&P BSE SmallCap jumped as much as 4.29 per cent to 15,184.11, which is a fresh 52-week high level. In March this year, the SmallCap index plunged to an all-time low of 8622.25 on the back of global uncertainty in the wake of the coronavirus pandemic. Since then, the index has been surging and has rallied around 76 per cent so far. The S&P BSE MidCap index managed to gain 2.3 per cent to touch the day’s high of 14,999.46. With today’s gain in the index, midcaps are now 5.8 per cent away from a 52-week high of 15,930.78, touched in February this year. Four out of 30 BSE Smallcap stocks were locked in the 20 per cent upper circuit today.
In 2018, BSE MidCap index scaled an all-time high of 18,821.37 and tumbled a massive 91.74 per cent to 9,555 this year in March. According to the latest ruling by the capital market regulator, multi-cap funds have to invest at least 25 per cent of their corpuses each in large-cap, mid-caps and small-cap stocks. In today’s trade, the top performer in smallcap index was Ramkrishna Forgings, which hit a 20 per cent upper circuit at Rs 272.40 apiece. The stock has more than doubled investors’ money from March low of Rs 135.45. It was followed by KPIT Technologies Ltd, which also hit 20 per cent upper cent at Rs 106.65 apiece, rising massive 209.57 per cent in less than six months. Similarly, Indoco Remedies Ltd and Persistent Systems too were locked in the 20 per cent upper circuit, at Rs 265 and Rs 1,188.60, respectively. Another gainer in the smallcap index was Birla Corporation, which soared 14.13 per cent in today’s trade.
From BSE Midcap index, IT consulting and software firm Mphasis share price climbed up to scale a fresh 52-week high of Rs 1,297.50 apiece in today’s trade. The other index gainers were Oberoi Realty, Shriram City Union Finance, Kansai Nerolac Paints, each up in the range of 6-7 per cent. Around 2.45 PM, BSE MidCap index was trading 1.50 per cent higher at 14,862.01, as compared to half a per cent fall in the benchmark S&P BSE Sensex. While the losers on this pack were IDBI Bank, Central Bank of India, Torrent Pharmaceuticals, Hindustan Aeronautics, Bharat Heavy Electricals Ltd (BHEL) and Future Retail, down between 1.2-5 per cent. | the broader markets beat the equity benchmarks BSE Sensex and Nifty 50. S&P BSE SmallCap jumped as much as 4.29 per cent to 15,184.11. in march this year, the smallcap index plunged to an all-time low of 8622.25. the index has rallied around 76 per cent so far. | Positive |
https://economictimes.indiatimes.com/wealth/borrow/rbi-allows-3-month-extension-of-loan-emi-moratorium-should-you-opt-for-it/articleshow/75888773.cms | ET Online
Giving more breathing room to borrowers repaying loans the Reserve Bank of India (RBI) on May 22, 2020 announced an extension of the previously announced three-month term loan EMI moratorium by another 3 months to August 31, 2020. The central bank, in March had announced a three-month EMI holiday from March 1, 2020, till May 31, 2020 on all term loan repayments like auto, home, personal loan EMIs and so on.This extension is especially a big relief for home loan borrowers facing a cash crunch due to the nationwide lockdown and its associated adverse financial impact on the economy.So, if you are a home loan borrower who opts to avail of the moratorium extension by 3 months and thereby take a total moratorium of six months, this is how it will impact your EMI schedule and total outgo on the loan amount.If you opt for the moratorium extension, you need not pay the EMIs for 6 months i.e. March, April, May, June, July and August. However, this does not mean that the six months' EMIs have been waived. It is only a grace period. You will have to continue paying the accrued interest on the loan EMIs (Equated monthly instalments) for these six months.If you opt for the moratorium on EMI payments, then banks are likely to give you three options:a) Make one-time payment of the accrued interest payable at the end of moratorium period;b) Add the accrued interest to the outstanding loan and pay the same by increasing the amount of EMIs to be paid for the rest of the loan tenure.c) Add the accrued interest to the outstanding loan and pay the same amount of EMI for a longer tenure thereby paying back the full amount.Let us take the example of a borrower who has taken a loan of Rs 30 lakh with tenure of 20 years paying 8 per cent per annum as interest rate. He pays an EMI of Rs 25,093.Source: Myloancare.inLet see now, what happens to this borrower's repayment schedule under different scenarios if he opts for the six-month moratorium.If the borrower has five years left on the home loan, then the interest that gets accumulated due to the six-month EMI moratorium will be Rs 49,500. If the borrower opts for option (a), i.e., making a one-time interest payment, then he will have to pay Rs 49,500 at the end of the moratorium.However, if he opts for a higher EMI outgo for the remaining tenure, then in such a scenario, the new EMI amount works out to be Rs 26, 097, an increase of Rs 1,004 in EMI.If the borrower decides to extend the tenure of the loan while keeping the amount of EMI payments constant, his loan tenure will get extended by two months.If the borrower in the example has 10 years of loan repayment tenure left, then in such a scenario, the interest due at the end of moratorium will be Rs 82,728.If the borrower opts to hike the EMI amount after the moratorium period is over, then the EMI amount increases by Rs 1,004 to Rs 26,097 for the remainder of the loan tenure. If he chooses to increase the loan tenure to pay off the interest accrued during the moratorium period, then it will get extended by three months.If there are 15 years left in the loan tenure, then in such a scenario, the interest due at the end of moratorium will be Rs 1.05 lakh. The borrower can choose to repay this interest amount at the end of moratorium period.However, if he chooses to go for an EMI hike after the moratorium period, then here also the EMI comes to be Rs 26,097 (an increase of Rs 1,004). If the tenure extension is opted for, then the loan tenure get will extend by four months. | the reserve bank of india has extended the three-month term loan EMI moratorium. the extension is especially a big relief for home loan borrowers facing a cash crunch. if you opt for the moratorium extension, you need not pay the EMIs for 6 months. if you opt for the moratorium extension, banks are likely to give you three options. | Positive |
https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/indias-coal-production-to-clock-record-700-mn-tonnes-in-fy21-secy/articleshow/75659088.cms | India will produce a record 700 million tonnes of coal in the current fiscal ending March 2021, helping cut down on imports, Coal Secretary Anil Jain said.India produced 602.14 million tonnes of coal in 2019-20 fiscal, marginally lower than 606 million tonnes output in the previous year."We are on track to producing 700 million tonnes of coal in 2020-21 fiscal," Jain told PTI in an interview.This record output will help stop most of substitutable coal imports, he said.India imports 235 million tonnes of coal annually. About half of this is non-substitutable as they are tied to the power plant or user factories, but the rest can be cut down, he said."We will able to cut substitutable coal imports with this rise in production," he said.Prime Minister Narendra Modi has set a target to expand the country's economy to USD 5 trillion by 2024, from USD 2.9 trillion currently, and reducing energy imports and harnessing domestic resources are key to meeting that goal.To meet the import reduction goal, state miner Coal India Ltd is targeting to raise its annual output to 1 billion tonnes by fiscal year 2024.Jain said FY20 coal production was lower than the target of 660 million tonnes because of flooding of a key coal mine.Power plants, which are key coal users, have stocks as high as 30-days due to the coronavirus lockdown , he said.The lockdown shut factories and offices, slashing electricity demand by about a quarter, thus affecting the use of coal and causing inventories to swell to record levels.Coal India Ltd has stocked up a record 75 million tonnes at its mines while power station inventories have surged to 44.7 million tonnes, the highest in data going back to 2008.The combined inventories are more than the two-month average of production at Coal India last fiscal. | india will produce a record 700 million tonnes of coal in the current fiscal ending March 2021. the output is marginally lower than 606 million tonnes output in the previous year. the record output will help stop most of substitutable coal imports, he says. india imports 235 million tonnes of coal annually, but the rest can be cut down. the country has set a target to expand its economy to USD 5 trillion by 2024. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/reserve-bank-moots-checks-and-balances-to-tackle-nbfc-stress/articleshow/69491885.cms | MUMBAI: The central bank on Friday proposed a set of strict norms for non-banking financial companies (NBFCs), including mandatory investments in government bonds and maintenance of cash thresholds, to enable them to tide over liquidity problems without causing disruptions to the broader financial system.The Reserve Bank of India (RBI) has also proposed that asset-liability mismatches at NBFCs not go beyond 20% of the outflows. The regulator has further suggested that NBFCs publicly disclose their funding concentration by way of both instruments and counterparties.The Liquidity Coverage Ratio ( LCR ) rule for NBFCs begins April 2020, and thresholds must be implemented in stages by March 2024, the central bank has proposed.“All deposit-taking NBFCs, irrespective of their asset sizes, shall maintain a liquidity buffer in terms of a liquidity coverage ratio, which will promote resilience of NBFCs to potential liquidity disruptions by ensuring that they have sufficient high-quality liquid asset (HQLA) to survive any acute liquidity stress scenario lasting 30 days,” said the draft rules posted on the RBI’s website.These rules have been prescribed for all NBFCs with assets of more than Rs 5,000 crore. The boards of these NBFCs have to ensure that they put in place comprehensive risk mitigation policies, the RBI said.The regulator’s proposals follow disruptions and a protracted credit squeeze in the financial markets since September after Infrastructure Leasing & Financial Services (IL&FS) and some of its operating units defaulted on repayment commitments. Many NBFCs were exposed to serious asset-liability mismatches, leading to pronounced declines in these stocks.“The stock of HQLA to be maintained by the NBFCs shall be a minimum of 100% of total net cash outflows over the next 30 calendar days,” the RBI said.HQLA could include cash and government bonds without haircut and with graded haircut from 15-50% of securities belonging to state-run companies and other sovereign-backed paper.“The liquidity management guidelines are clearly intended to ensure a strong liquidity management culture among large NBFCs,” said Nachiket Naik, head, corporate lending, Kirloskar Finance. “A lot of the means elaborated in the guidelines to monitor ALM are akin to those prescribed for banks and demonstrate the RBI’s intent to harmonise governance and supervision standards between banks and large NBFCs.”The RBI has suggested that NBFC boards must monitor off balance sheet items as well.“The management of liquidity risks relating to certain off balance sheet exposures on account of special purpose vehicles, financial derivatives, and guarantees and commitments may be given particular importance due to the difficulties that many NBFCs have in assessing the related liquidity risks that could materialise in times of stress,” the draft rules said.Yet another mandate is to diversify the source of funds so that over-reliance on one stream doesn’t choke the system.“There should not be over-reliance on a single source of funding,” according to the draft rules. “Funding strategy should also take into account the qualitative dimension of the concentrated behaviour of deposit withdrawal (for deposit-taking companies) in typical market conditions and over-reliance on other funding sources arising out of the unique business model." | the central bank has proposed a set of strict norms for non-banking financial companies (NBFCs) the rules include mandatory investments in government bonds and maintenance of cash thresholds. asset-liability mismatches at NBFCs should not go beyond 20% of the outflows. the regulator has suggested that NBFCs publicly disclose their funding concentration by way of both instruments and counterparties. | Positive |
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