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https://www.livemint.com/news/india/fdi-equity-inflows-into-india-cross-usd-500-bn-milestone-11607262840277.html | New Delhi: Foreign direct investment (FDI) equity inflows into India crossed the USD 500 billion milestone during April 2000 to September 2020 period, firmly establishing the country's credentials as a safe and key investment destination in the world.
According to the data of the Department for Promotion of Industry and Internal Trade (DPIIT), the inflows during the period stood at USD 500.12 billion.
About 29 per cent of the FDI came through the Mauritius route. It was followed by Singapore (21 per cent), the US, the Netherlands, Japan (each 7 per cent), and the UK (6 per cent).
India received USD 144.71 billion from Mauritius and about USD 106 billion from Singapore during the period under review.
The other big investors have been from Germany, Cyprus, France and Cayman Islands.
Since 2015-16, FDI inflows have been recording significant growth. In that fiscal, the country received USD 40 billion FDI, an increase of 35 per cent over the previous year. In 2016-17, 2017-18, 2018-19 and 2019-20, the investments stood at USD 43.5 billion, USD 44.85 billion, USD 44.37 billion and USD 50 billion, respectively.
The key sectors which attracted the maximum of these inflows include services segment, computer software and hardware, telecommunications, trading, construction development, automobile, chemicals, and pharmaceuticals.
"Indian FDI journey began with enactment of FEMA (that replaced the draconian FERA) in 1999. Looking back, the half-trillion dollar FDI in India is an indication of foreign investor's firm belief in India's strong economic fundamentals, stable political outlook and sustained economic growth which generated returns for investors even during the global recession of 2007-08," Nischal Arora, Partner- Regulatory, Nangia Andersen India said.
He said as the country cautiously steps into the next decade under the shadow of the ongoing pandemic, it is imperative that the government continues its measures to attract FDI in the manufacturing and high-end technology sectors.
Rajat Wahi, Partner, Deloitte India, said FDI equity inflows crossing USD 500 billion "is indeed a great milestone, and continues to show the trust and faith that the global investors have in India's growing economy".
This growth is a strong reflection of the market potential of India coupled with the steady state of market reforms that India has undertaken since 2000, including opening up of various sectors of the economy to 100 per cent FDI over the last 5 years, he said.
When asked about what more steps the government can take to give a leg-up to increase FDI, Wahi said while the overall market potential of India will always be high, given the large population, many other factors like ease of doing business, land, labour laws, tax rates, availability of talent, logistics, and political stability also play important role in attracting FDI to any country.
"While we have improved significantly across many of these areas over the last decade, and especially over the last 5 years, there is still a long way to go for us to be able to compete with countries like China and other markets like Vietnam, Thailand, and Malaysia," he added.
However, Gunjan Shah, Partner, Private Equity, Merger & Acquisitions & General Corporate, Shardul Amarchand Mangaldas, said: "I would not attribute this (crossing USD 500 billion mark) to increased investor confidence in the Indian market. There is a lot of liquidity around the world right now and the real test would be to see if a higher proportion of that is being deployed in India."
Shah said clarity on regulatory and tax issues could help increase FDI and the government should also consider further liberalisation of capital intensive industries like banking and insurance.
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This story has been published from a wire agency feed without modifications to the text. | india received USD 144.71 billion from Mauritius and about USD 106 billion from Singapore. the country received USD 40 billion FDI in 2015-16, an increase of 35 per cent. key sectors which attracted the maximum of these inflows include services segment. the country is expected to be a key investment destination in the world. a u.s.-based company is also investing in the country. | Positive |
https://www.moneycontrol.com/news/technology/auto/nandan-nilekani-backed-spinny-buys-online-used-car-platform-truebil-5656271.html | Spinny and Truebil, two of India’s biggest start-ups in the online used-vehicle space, have joined hands to tap the burgeoning second-hand car market.
Gurugram-based Spinny will acquire 100 percent of Mumbai-based Truebil for an undisclosed sum, top officials of both the companies confirmed to Moneycontrol. By the end of FY20 India's used car market is estimated to be over 4 million cars.
“We have had significant growth last year which is when Truebil was the largest player in the segment. Truebil had scaled down its operations when COVID-19 hit the market. We are not merging the business of the two companies but we are instead acquiring the technology platform, brand and the products of Truebil,” Niraj Singh, founder of Spinny said.
Truebil is a natural fit for Spinny. While Truebil scaled up its technology to depend on algorithm ably aided by other analytical tools for generating best consumer engagement, Spinny was able to raise funds in a relatively short period.
In less than a year Spinny raised a little over $57 million from a bunch of popular investors including Nandan Nilekani-owned Fundamentum Partners, SAIF Partners and Accel Partners. The deal also gives Spinny the entry into the Mumbai market. The company presently has operations in Delhi, Pune, Bengaluru, Gurugram, Noida and Hyderabad.
“We will allow the Truebil platform to operate for some time. We will later reassess if it makes sense to continue with it or should we merge it with Spinny. We operate in cars priced between Rs 3 to Rs 10 lakh, whereas Truebil operates in the band of Rs 2-4 lakh,” Singh added.
“Even if we had not acquired Truebil we would have started building that part of the business on our own because we had earmarked separate investment for it. But what would have taken us two years to achieve, we have done it now by this acquisition,” Singh added.
None of Truebil’s investors such as Kalaari Capital, Inventus, Shunwei Capital and Japanese investor Joe Hirao will stay invested after the buy-out by Spinny. Both Truebil and Spinny were born in 2015 and were competing with each other in a couple of markets such as Delhi and Bengaluru.
While Truebil was slower in expanding its business to new cities Spinny was much faster. Truebil had to even scale down its business following the COVID-19 outbreak and there was no transaction happening on its website since the past few months due to the deal.
“We realised it might take more than a year to revive the business and there was a player who had the backing of the Tier 1 VCs and it was not making sense for us to continue fighting in the same market with the same business model. That is why we decided to join forces. We build the technology part of the business and Spinny raised capital. So it was a very ideal fit,” Shubh Bansal, one of the seven co-founders of Truebil, told Moneycontrol.
Last year Truebil reported a growth of 5X compared to 2018. At that time the company was recording Rs 30 crore of revenue, while gross merchandise value was around Rs 40 crore.
A little more than two years ago, Truebil ventured into the brick-and-mortar medium from being an exclusive online marketplace company. The company buys cars at auctions, refurbishes them and makes a double-digit margin selling it to buyers. | spinny will acquire 100 percent of Mumbai-based Truebil for undisclosed sum. by the end of FY20 india's used car market is estimated to be over 4 million cars. spinny raised $57 million from a bunch of popular investors in less than a year. Truebil is a natural fit for spinny. spinny has operations in Delhi, Pune, Bengaluru, Gurugram, Noida and Hyderabad. | Positive |
https://www.financialexpress.com/industry/technology/jio-fiber-broadband-services-out-on-september-5-five-key-takeaways-from-mukesh-ambanis-agm-speech/1673300/ | Jio Fiber services will be launched on the commercial basis on September 5, bundled with a host of new services, Reliance Industries Chairman and Managing Director Mukesh Ambani announced in his Annual General Meeting speech on Monday.
Reliance’s decision to scale up Jio Fiber services at the commercial level has been considered to be yet another disruptive move by the Mukesh Ambani-led conglomerate. In 2016, RIL disrupted the telecom sector in the country with the launch of Reliance Jio that offered cheap tariffs and unlimited access to select online content among other benefits.
This time the Mukesh Ambani-led company is all for increasing the penetration of broadband services and foray into the broadcast TV business.
Here’s the list of key takeaways from Mukesh Ambani’s speech:
1- Under the ‘Jio Fiber Welcome Offer’, the company will provide free high definition TV and high definition set-top box bundled with a range of digital services such as Ultra-HD entertainment, virtual reality content, multi-party video conferencing, interactive gaming, home security and other smart home solutions.
2- The Jio Fiber will offer fast broadband service with speeds clocking between the minimum speed of 100Mbps up to a maximum of 1Gbps or 1000Mbps. “On performance – the average fixed-line download speed in the US which is the most developed economy is around 90Mbps,” Ambani said at the AGM.
3- If Reliance Jio offered a slew of applications such as Jio Cinema, Jio TV, Jio Magazine for mobile users after its launch, the Jio Fiber plans will include subscriptions to over-the-top (OTT) applications.
4- The Jio Fiber plans will come bundled with a landline phone connection that offers free voice calls for lifetime at no additional cost. With Rs 500 per month calling pack, Jio Home Phone users will enjoy free international calling to the US and Canada. However, calling tariffs for other countries are expected to be announced on September 5.
5- The Jio Fiber plans will be announced with its commercial roll out on September 5. The base plan for Jio Fiber services has been set at Rs 700 per month while the top plan will cost Rs 10,000 per month. Further details on data plans and other bundled services will be revealed on September 5. | Jio Fiber services will be launched on the commercial basis on September 5. the company will provide free high definition television and high definition set-top box bundled with a range of digital services. the base plan for Jio Fiber services has been set at Rs 700 per month while the top plan will cost Rs 10,000 per month. the company will also offer free international calling to the us and canada. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/assams-commerce-minister-calls-upon-top-global-companies-to-invest-in-the-state/articleshow/76074416.cms | GUWAHATI: Industries and Commerce Minister Chandra Mohan Patowary interacted with top global companies operating across United States and India and called upon the industries to invest in the Assam and instructed the officials to fast track all investment proposals and assured of customised support with a dedicated team of officers for each companyThe webinar was facilitated by US-India Business Council (USIBC) and assisted by Invest India. The companies included representatives from General Electric (GE), Hydrocarbon Dynamic (HCD), Pfizer , P&G, John Deere eBay and Walmart.The Minister called upon the industries to invest in Assam and instructed the officials to fast track all investment proposals and assured of customised support with a dedicated team of officers for each company.Patowary underlined the proactive steps taken not only in the health sector to control COVID-19 pandemic, but also in putting the economy back on track by allowing all its industries to resume work albeit with social distancing and other precautions.Highlighting the advantages of Assam, Minister Patowary said, ‘The strategic geographic location backed by a strong connectivity network makes Assam the ideal staging point for doing business with BBN and ASEAN bloc countries. This opens up $ 800 million market for the industrialists who want to manufacture in Assam for export to the rest of the global market through the ports of Myanmar and Bangladesh. Initiatives like Act East Policy Affairs Department and Assam Skill Development Mission have helped to develop better commercial linkages with the South East Asian countries’, added Patowary.Interacting with Pfizer, Minister Patowary invited the company to set up a plant in Assam as it already has a strong pharmaceutical base for companies like Sun Pharma, Ajanta Pharma, Hetero Healthcare, with export potentialities to Myanmar, Bangladesh and Bhutan.The Minister asked John Deere – manufacturing company in agriculture sector – to explore in agri-entrepreneurship and agri-mechanization for employment in the rural areas.He also asked companies like Mastercard, Walmart and e-bay to come forward and support the MSMEs, particularly the rural artisans, handloom and textile entrepreneurs and training in digital payments etc. He asked Hydrocarbon Dynamic (HCD) and GE to work with the State Government in sector like hydrocarbon and power respectively.Dr. KK Dwivedi, Commissioner and Secretary, Industries and Commerce Department, presented Assam’s advantages in terms of robust connectivity, natural resources, skilled workforce, favourable policies like NEIDS and the state’s own Industrial and Investment Policy, ease of business, industrial corridor etc.Ambika Sharma, Managing Director, India, USIBC said, ‘Assam is the fulcrum of India’s Act East Policy and gateway to South East Asia, making it crucial for global companies as they re-work business models, strategies and diversify supply chains. We thank the state leadership and look forward to working with them as strategic partners to promote business, investment and strengthening the policy environment.’ | industries and commerce minister Chandra Mohan Patowary interacted with top global companies operating across the United States and India. the companies included representatives from General Electric (GE), Hydrocarbon Dynamic (HCD), Pfizer, P&G, John Deere eBay and Walmart. the webinar was facilitated by US-India Business Council (USIBC) and assisted by Invest India. | Positive |
https://www.financialexpress.com/market/morgan-stanley-india-stock-picks-developed-economies-to-lead-markets-in-post-covid-world/1994778/ | Global brokerage and research firm Morgan Stanley has picked a handful of Indian stocks in the post coronavirus world, despite being overall bullish on developed markets instead of emerging ones such as India. Morgan Stanley in its Asia EM Equity Strategy Mid-Year Outlook, under various screeners, picked automobile giant Maruti Suzuki, utilities firm NTPC, and telecommunications behemoth Bharti Airtel as some of the stocks that pose a significant upside from current levels. In the post-coronavirus world, the global brokerage said, leadership of emerging markets looks unlikely owing to the adverse outcomes of the coronavirus in emerging economies.
Morgan Stanley sees developed economies outpace the emerging ones in the post-coronavirus world. While Indian market along with Singapore, China, Russia, and Brazil remain preferred and overweight by the investment bank, which has added Indonesia and Greece to the list. “We have been of the view that this will be a sharper but shorter recession. Recent Upside surprises in the incoming growth data and policy action have increased our confidence that this will be a deep V-shaped recession,” the mid-year strategy outlook said. Policy measures have been termed as significant across the globe, while adding that it expects policy makers to maintain an accommodative policy stance. Base case assumptions for GDP by Morgan Stanley, peg India to de-grow by 1.7% in 2020 before jumping to a 9% GDP growth rate in 2021. “Moreover, strong growth in agriculture and allied activities, normal monsoon prediction by the IMD, and an increase in the crops support price should support the rural Indian economy. Further, MSCI India has underperformed the broader EM market with YTD price returns of -13.9% vs -5.9% by MSCI EM,” the report said.
“On a sector basis we move more cyclical, with modest OWs to materials and energy, while moving UW communication services, alongside Utilities,” the mid-year strategy outlook said. Morgan Stanley remains overweight on India’s industrial sector. The Best Business Models, which has outperformed the MSCI EM since 2014, consists of four Indian stocks. Namely these include; HDFC Bank, Petronet LNG, Maruti Suzuki, and Tata Consultancy Services. These companies have been picked up as ‘highest quality companies’. Analysts at Morgan Stanley currently see upside of 16.9% on Petronet LNG from current levels while an upside of 7.6% is being eyed from Maruti Suzuki’s current market price.
For investors going for value or cyclical stocks, Morgan Stanley has picked NTPC as overweight in the category with a 40% upside to the target price. In the mid-year outlook, the global emerging market and Asia excluding Japan focus list has also been updated. “We have reviewed our APxJ and GEM Focus Lists as part of the mid-year outlook process and look to capture some of the incremental changes of view from a macro, market/sector selection and style preference basis,” Morgan Stanley said. Among the two India listed firms, Bharti Airtel is overweight in the category with an upside of 29.4% expected from the telecom giant. | global brokerage firm Morgan Stanley picks a handful of Indian stocks. maruti Suzuki, utilities firm NTPC and telecommunications behemoth Bharti Airtel are among the stocks that pose a significant upside from current levels. despite being overall bullish on developed markets, the firm sees emerging economies outpace emerging ones in the post-coronavirus world. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/brave-new-world-where-is-gold-headed-fed-balance-sheet-telling-something/articleshow/74858219.cms | Ritesh Jain Ritesh Jain is Director and Strategic Advisor, Eastern Financiers and Economic Advisor, Old Bridge Capital. The Calgary, Canada-based Jain is also a global macro investor and Top 3 Global LinkedIn Influencers on Economy and Finance, Mumbai He is a trend watcher, Global Macro investor and Blogger at worldoutofwhack.com. He has over 20 year...Show more »
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com .)
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less | Ritesh Jain is a trend watcher, global macro investor and blogger. he has over 20 years of experience in the financial services industry. he has a wealth of experience in the financial services industry. he is also a top 3 global LinkedIn influencers on economy and finance. he is a trend watcher, global macro investor and blogger at worldoutofwhack.com. | Positive |
https://economictimes.indiatimes.com/news/economy/indicators/young-population-ready-to-adapt-more-confident-of-future-standard-chartered-survey/articleshow/77417674.cms | A large section of the global young population led by India is confident of their future despite lower salaries and the possibility of a further hit on jobs and income due to the Covid-19 pandemic as they are prepared to adopt to a new world to work harder and use digital technologies, a survey by UK based bank Standard Chartered said.Standard Chartered conducted a ten-minute online survey of 12,000 people aged 18 or above across 12 markets | survey by bank reveals large section of young population confident of their future. 12,000 people aged 18 or above were surveyed in 12 markets. a large portion of the global young population is confident of their future. a large portion of the global young population led by india is confident of their future. the young are prepared to work harder and use digital technologies. | Positive |
https://economictimes.indiatimes.com/industry/auto/auto-news/govts-special-stimulus-package-to-help-revive-commercial-vehicle-industry-vipin-sondhi-ashok-leyland-md/articleshow/75711752.cms | MUMBAI: The government's Rs 20 lakh crore special economic package has the potential to be "sustainably beneficial" to all sectors of the economy and help revive commercial vehicle industry, in particular, Ashok Leyland MD and CEO Vipin Sondhi said on Wednesday.Prime Minister Narendra Modi on Tuesday announced a stimulus package worth Rs 20 lakh crore, which combines the government's recent announcements on supporting key sectors as also measures rolled out by the Reserve Bank of India (RBI)."While we await the details, the announcement of the reforms-cum-stimulus to the tune of 10 per cent of GDP… has the potential to be sustainably beneficial to all sectors of the economy," Sondhi said.In particular, the commercial vehicle (CV) industry will stand to gain, he stated.The domestic automobile sector reported more than 18 percent drop in sales at 2,15,48,494 units and a 15 per cent decline in vehicle production to 2,63,62,284 units in FY20, according Society of Indian Automobile Manufacturers (SIAM) data.CV sales during this period declined 28.75 percent to 7,17,688 units year-on-year.The massive thrust on self-reliance, along with the focus on creating local demand, and resurrecting local supply chains should provide enough impetus to kick start the economy, Sondhi said.As the COVID-19 pandemic rages on, all these measures are the need of the hour and "more than expected, given the limited fiscal room that was available," he added."With the pride of Make-in-India through quality, we look forward to a stronger, self-reliant India where everyone prospers," he said. | the government's special economic package is worth Rs 20 lakh crore. it combines the government's recent announcements on supporting key sectors. commercial vehicle industry will stand to gain, he says. domestic automobile sector reported more than 18 percent drop in sales. the massive thrust on self-reliance, along with the focus on creating local demand, should provide enough impetus to kick start the economy. | Positive |
https://economictimes.indiatimes.com/markets/stocks/recos/add-sun-tv-network-target-price-rs-452-icici-securitiesnbsp/articleshow/76721625.cms | ICICI Securities has given an add rating to Sun TV Network with a target price of Rs 452. The share price moved up by 1.50 per cent from its previous close of Rs 397.40. The stock’s last traded price is Rs 403.35.The brokerage says that though the company’s revenues would be impacted due to Covid-19 crisis in FY21, the management sees a cushion to net profit from lower cost of revenues and much lower amortisation, which should enable it to maintain flattish net profit. In programming, priority will be for producing fictions while non-fiction shows will have to wait for a few months.) Sun TV still intends to spend its committed Rs 1.5 billion on original shows for SunNXT. It does not expect IPL in FY21; however, in case IPL is played, it should add Rs 2 billion in pre-tax profit with the downside risk of Rs 250 million from ticketing revenue. Also, Sun TV remains cautious about recovery in radio business in FY21.Sun TV Network’s Q4FY20 ad revenues declined 14.4 per cent year on year due to underlying weakness in the economy while Covid-19 crisis will add to the burden in FY21. However, the company’s unique model of higher subscription revenues (54 per cent in Q4FY20) and GRP benefit from a strong movie library in the South market will help outperform peers on earnings, and mitigate downside risk. The brokerage expects only a slight dip in EPS and has raised its EPS estimate by 7.7 per cent for FY21E on lower amortisation. Accordingly, the brokerage has increased the target price to Rs 452 from Rs 420.For the quarter ended March 31, 2020, the company reported consolidated sales of Rs 758.13 crore, down -10.58 per cent from last quarter sales of Rs 847.81 crore and down -17.36 per cent from last year's same quarter sales of Rs 917.34 crore. The company reported net profit after tax of Rs 249.43 crore in the latest quarter.Promoters held 75 per cent stake in the company as of March 31, 2020, while FIIs held 8.96 per cent, DIIs 7.21 per cent and public & others 8.83 per cent. | ICICI Securities has given an add rating to sun TV network with a target price of Rs 452. the stock's last traded price is Rs 403.35. the brokerage expects only a slight dip in EPS and has raised its EPS estimate by 7.7 per cent for FY21E on lower amortisation. the company's unique model of higher subscription revenues (54 per cent in Q4FY20) and strong movie library in the south market will help outperform peers on earnings. | Positive |
https://www.moneycontrol.com/news/business/economy/fm-nirmala-sitharman-press-conference-focus-shifts-to-bharat-in-second-tranche-of-measures-to-fight-covid-19-5266821.html | After announcing the first tranche of measures under the Atmanirbhar initiative, Finance Minister Nirmala Sitharaman on May 14 unveiled the next set of measures to alleviate the hardships caused to the farmers, migrant workers and street vendors due to the coronavirus-induced lockdown restrictions.
Street vendors, the worst-hit by lockdown and staring at an uncertain future, have been handed a major lifeline with the government announcing special credit facility of Rs 5,000 crore for them.
With the PM Garib Kalyan Yojana already in place, Sitharaman announced more measures as the government tries to put the economy back on track.
The '1 nation 1 ration card' is also expected to mitigate the problems of the poor and migrant workers to a great extent.
"We are conscious of the problems of the migrants. Government has been working for their benefit over the last two months. There may have been a lockdown, but the government has not been sitting idle," Sitharaman said at the outset, setting the tone for the press meet which lasted for over an hour.
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
Here we take a look at the key measures announced in today's press meet:
Tackling agri concerns
Sitharaman said a special drive to provide concessional credit to PM-Kisan beneficiaries will be undertaken. The Rs 2 lakh crore concessional credit will be extended to 2.5 crore farmers who don't have the card. Fisherman and animal husbandry workers will also be included.
Track this blog for highlights from second day of FM's briefings
Interest subvention scheme on farmer loans at concessional rates has also been extended until May 31, 2020.
"Liquidity support for farmers and rural economy has been happening over the past two months. Refinancing of Rs 29,000 crore was provided by NABARD to co-operative banks and RRB in March. Through RIDF, NABARD extended support of Rs 4,200 crore in March. Activities via banks to support the agriculture sector has not stopped during lockdown," she said.
Addressing woes of migrant workers
Sitharaman acknowledged that the migrant workers are undergoing immense pain due to the lockdown restructions and reiterated the government's claim of helping them get over this crisis.
"They will get free food grains for the next two months. This will benefit 8 crore migrants and central government has earmarked Rs 3,500 crore for this. For non-ration card holders, there will be free 5 kgs per family of wheat/rice and 1 kg chana. State governments will be in charge of this initiative," she said.
She added that in the past two months, government has transferred Rs 11,000 crore via SDRF to states for migrants and government has funded 3 meals/day to inmates of shelters for urban homeless and Centre has participated in forming 7,200 new self-help groups for urban poor since March 15.
"Will allocate more for MNREGA if required. MNREGA is offering work to 2.33 crore wage-seekers in 1.87 lakh gram panchayats. Actual annual expenditure under MNREGA this financial year so far is Rs 10,000 crore," she said.
Labour reforms
"We want to bring in universal minimum wage, and bring in a national floor wage for minimum wages, so that there is no disparity between states," she said.
She also said there is a proposal to make all occupations open to women, including night shifts with proper safeguards, in the pipeline in the proposed Labour Code.
Among other things, there will be mandatory ESIC coverage for employees of hazardous industries, social security schemes for gig and platform workers and re-skilling of retrenched workers. Focus will also be on employment for adivasis and tribals
Urban poor
She said the government will launch a rental housing scheme and use empty government land to build more housing
Street vendors
A special credit facility of Rs 5,000 crore for 50 lakh vendors was announced by the FM and she informed that it will be launched within a month
The initial working capital will be up to Rs 10,000.
Affordable Housing
The credit link subsidy scheme has been extended up to March, 2021. For the lowest strata of middle-income groups (income of up to 6-18 lakh/annum)
This will reinvigorate construction services and spur demand for building materials.
The FM said empty government land will be used to build more housing through PPP mode.
Reiterating the importance of small-scale units for the Indian economy, she said interest subvention support of 2 percent has been extended to all shishu loan holders (loans up to Rs 50,000)
Sitharaman in the first tranche had unveiled a Rs 5.94 lakh crore plan comprising off-budget items such as Rs 3 lakh crore of credit line to small businesses as well as liquidity support to shadow banks and power discoms.
Follow our full coverage of the coronavirus outbreak here | farmers, migrant workers and street vendors face severe hardships due to lockdown. finance minister announces new measures to ease the hardships. '1 nation 1 ration card' is expected to mitigate the problems of the poor and migrant workers. a vaccine works by mimicking a natural infection. a vaccine helps quickly build herd immunity to put an end to the pandemic. | Positive |
https://www.businesstoday.in/markets/market-perspective/sebi-details-out-guidelines-for-functioning-of-regulatory-sandbox/story/406097.html | Capital markets regulator Sebi on Friday released guidelines for the regulatory sandbox, enabling entities regulated by the watchdog to test their new solutions in a live environment and on a limited set of real customers with necessary safeguards. The move is aimed at encouraging adoption and usage of financial technologies to further develop and maintain a transparent securities market ecosystem, according to Sebi.
To encourage innovation with the minimal regulatory burden, Sebi said regulatory relaxations from various regulations may be provided after analyzing specific sandbox testing applications.
Under the guidelines, entities regulated by Sebi will be granted certain facilities and flexibilities to experiment with financial technologies solutions in a live environment and on a limited set of real customers for a limited time frame, a circular said.
These features will be fortified with necessary safeguards for investor protection and risk mitigation, Sebi said in a circular.
Coming out with detailed guidelines pertaining to the functioning of the regulatory sandbox, Sebi said all entities registered with the regulator shall be eligible for testing in the regulatory sandbox.
"The entity may either on its own or engage the services of a FinTech firm. In either scenario, the registered market participant shall be treated as the principal applicant," Sebi said.
On regulatory exemptions, the regulator said it shall "consider exemptions/ relaxations, if any, which could be either in the form of a comprehensive exemption from certain regulatory requirements or selective exemptions on a case-by-case basis, depending on the FinTech solution to be tested."
Within the overarching principles of market integrity and investor protection, no exemptions would be granted from the extant investor protection framework, Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules.
Regrading eligibility criteria of the project, Sebi said the solution should be innovative enough to add significant value to the existing offering in the Indian securities market and should have a genuine need for live testing the solution on real customers.
In addition, before applying for testing in sandbox, limited offline testing of the solution should have been carried out by the applicant, the solution should offer direct benefits to users and there should be no risks to the financial system.
Besides, the eligibility criteria also include the test readiness of the solution and the applicant should demonstrate the intention and ability to deploy the solution on a broader scale.
The applicant, upon ensuring that the eligibility criteria are satisfied, is required to submit the application form in the format prescribed by Sebi. It also gave a detailed application, approval and evaluation process.
Sebi has also come out with a framework on submission of test-related information and reports, obligations of the applicants towards the user and extension or exit from the sandbox.
The regulator has also listed out specific conditions under which the approval to participate in the sandbox may be revoked.
In addition to revocation of approval, appropriate actions may be initiated against the applicant if it facilitates undermining of KYC principles, violation of user''s or investor''s privacy, promotion of the sale of fraudulent or illegal products, services, promotion of mis-selling of products or services, violation of AML norms, creation of risk to financial stability and theft of intellectual property. | sebi: entities regulated by the watchdog can test their new solutions in a live environment. the move is aimed at encouraging adoption and usage of financial technologies. the regulatory sandbox will allow entities to experiment with financial technologies. the features will be fortified with necessary safeguards for investor protection. a sandbox is a "regulatory environment" for financial technologies, sebi says. | Positive |
https://www.financialexpress.com/money/why-this-is-the-time-to-buy-stocks-of-great-companies/1955537/ | By Rachit Chawla
Stock market investors are worried as businesses have come to a halt because of the lockdown due to the Covid-19 pandemic. Share prices have crashed and investors have lost money. However, investors should not take any knee-jerk decisions in these volatile times.
What not to do
If you are holding a stock in a good company that has shown progress over the years but is down now because of Covid-19 pandemic, you shouldn’t be too eager to sell your stocks. Investors who are patient will reap the rewards later. One of the easiest ways to make money in the markets is to invest in growing companies and ignoring the ups and downs that will occur from time to time. Stock market rewards patient investors. In the global financial crisis of 2008, TCS fell by more than 50% within a span of two years. But once things stabilised, it made a comeback from Rs 125 a share to Rs 2,284 in 12 years with a CAGR of 30%.
Another great example is of Bajaj Finance, whose stock prices fell by over 80% during the span of one year from 2007 to 2008. However, in the current market, it is counted among the largest wealth creators in the country.
Another mistake is that people end up buying stocks in a company simply because the price has fallen. Buying cheap stocks will only lead to profit if the company is good enough to last long term. There are plenty of companies in existence today that will cease to exist within a decade and you would end up losing your money. So make sure that if you are investing, invest long term and in a company that is going to make a comeback.
What should you do
It is like they say, a crisis is also an opportunity. A pandemic of this scale is a one-off occurrence and it will create investment opportunities for people to generate a fortune over the next decade or so. One just has to trust the statistics. Moreover, there are companies that have faced such crises before and they’ve always came back stronger. Such companies can be easily identified by studying their stock trends which are always inching higher and higher.
Even with the shutdown in place, people will be buying groceries and other household stuff and companies such as Hindustan Unilever that manufacture these products will continue to generate wealth as they have in the past.
Every crisis looks smaller in the hindsight. So four to five years from now, we’d all be looking at this time as an excellent buying opportunity. Those who do not invest for the fear of losing their money will come to regret their decision in the future.
Some investors who own stocks in successful companies are selling those stocks now at cheaper prices because business outlook is poor this year. They should, however, not forget the fact that in the long term, these companies are going to bounce back and the drops they are currently suffering would look negligible in a couple of decades. Such is the power of long-term investment. This present crisis has created an opportunity for smart investors to buy stocks in great companies.
A common mistake that investors make during times of crises such as this is that they end up investing in low-priced cheap, cyclical stocks—which hurts them in the long run. Those investors who remain calm and invest in great companies despite the current bleak scenario will reap the benefits n the future.
The writer is founder & CEO, Finway | investors should not take knee-jerk decisions in these volatile times. a pandemic of this scale is a one-off occurrence and creates investment opportunities for people to generate a fortune over the next decade or so. a company that has shown progress over the years but is down now because of the covid-19 pandemic should not be too eager to sell its stocks. | Positive |
https://www.financialexpress.com/market/dixon-technologies-shares-hit-new-52-week-high-m-cap-tops-rs-10000-cr-skyrocket-267-in-less-than-1-year/2076876/ | Dixon Technologies share price jumped over 4 per cent to scale a fresh 52-week high of Rs 8,935 apiece on BSE, taking the market capitalisation of the company above Rs 10,000 crore. The stock has been on a gaining spree since past five consecutive trading sessions. The stock has surpassed its previous high of Rs 8,821.85 apiece touched on August 28 this year. The stock has skyrocketed 267 per cent from its 52-week low of Rs 2,433.20, hit in September last year. “Stock is consistently holding above major moving averages but at the same time on higher levels selling pressure keeping it below 9000. This is the first indication of the distribution on a higher level. If it isn’t able to cut above 8900 then profit booking may come. On the other hand, above 8900 it can move till 9600,” Vishal Wagh, Head of Research, Bonanza Portfolio, told Financial Express Online.
Dixon Technologies shares were trading 1.8 per cent higher at Rs 8,730 apiece, as compared to 0.15 per cent fall in the benchmark S&P BSE Sensex. According to a research report by ICICI Securities, Dixon is well placed to cater to this business proposition and is well equipped to serve the export markets in select categories (feature/smart-phones, lighting, washing machines). It further noted that set-top box is emerging to be a big category for Dixon with Rs 8 bn-10 bn revenue potential in FY22 with volumes of 800k-1,000k per month driven by RJio, Dish TV and Siti Cable. There is enough demand for set-top boxes in semi-urban and rural markets.
“We are constantly developing new products to meet end-user requirements. Being the largest manufacturer of TV sets in India, we expect to increase the production further by 40% in the coming fiscal, capturing almost 30% of the TV sets manufacturing market. Further, as brands look to reduce their refurbishment cost, more and more companies will outsource such operations to established players like us for addressing end-user queries,” said Abhijit Kotnis President- COO – Consumer Electronics & Reverse logistics, in an annual report of Dixon Technologies.
Analysts at Anand Rathi noted that while the first quarter was hurt by the lockdown, Dixon continues to lead the government’s self-dependence measures to manufacture consumer durables. It is well placed to benefit from the PLI scheme, for which submissions have been made. The recent notification putting television imports in the restricted category also augurs well for Dixon and supports customer additions. “Expansion of Reliance Jio can further increase Dixon’s addressable set-top boxes and be another `10bn opportunity waiting to unfold in coming years,” it added. | stock has surpassed previous high of Rs 8,821.85 apiece touched on august 28. stock has skyrocketed 267 per cent from its 52-week low of Rs 2,433.20. set-top box is emerging to be a big category for Dixon with Rs 8 bn-10 bn revenue potential in FY22. analysts say first quarter was hurt by the lockout of a tv factory in sri lanka. | Positive |
https://www.businesstoday.in/markets/company-stock/sensex-nifty-log-biggest-single-session-gains-what-fuelled-the-rally-today/story/400386.html | Sensex and Nifty logged their biggest single day gains (in terms of points ) as they closed nearly 9% higher on Tuesday, in line with global peers despite rising coronavirus cases in India. Global markets were emphatic by the slowing of coronavirus cases in US, Spain and Italy.
While Sensex gained 2,476 points at 30,067, 50-share barometer NSE Nifty rose 708 points at 8,792.
Indices have recorded the best trading day in percentage terms since May 2009 and posted the biggest ever single-day gains in absolute term today.
Volatility Index, India VIX also slipped 6% intraday and closed at a one-month low of 52.6, down 3.24 points or 5.86%.
All the sector-based indices ended in green with PSU Banking gaining the most at 11%. Banking, financials and pharma ended 10% higher, followed by 8% gain in FMCG, 7.5% rise in IT and 6.5% gain in metal. Realty and media indices ended 6% higher, respectively.
All 30 Sensex and 50 Nifty stocks closed in the green. Total 14 out of 30 Sensex stocks and 21 Nifty stocks closed over 10% higher at the closing bell.
S Ranganathan, Head of Research at LKP Securities said, "Even as the GOI chose to save lives at the cost of livelihood, markets showed no mercy and finally, the bulls took the bears to task today with a salute of more than 700 points on the NIFTY."
Domestic indices followed the bullish trend from overseas as investors worldwide banked upon hopes over prospects of falling fatalities numbers due to the tightened lockdowns and random screening by governments across the world to combat the virus spread.
Wall Street rallied on account of fall in the death toll from country's biggest virus hotspot-New York. Equity investors in Europe also were encouraged by the slowing death toll from the virus across major European nations, including France and Italy. China also reported no new coronavirus deaths for the first time.
The Dow Jones ended 7.73% higher, followed by the S&P 500 that closed 7.03% higher and the Nasdaq Composite that added 7.33% on Monday's trade. Wall Street rallied on account of fall in fatalities at biggest virus hotspot-New York.
Tracking trend from US, all the indices in Asia were gaining over 1% by Tuesday evening, while Japan's Nikkei was up 2%. European indices also opened higher on Tuesday, with Germany's DAX trading 4.2% higher, while France's CAC and London's FTSE gained over 3%.
Vinod Nair, Head of Research at Geojit Financial Services said, "Aided by the news that the infections were peaking in some of the worst affected areas around the world, the Indian markets in sync with the Global markets, witnessed a relief rally. Investors are also awaiting ease in lockdown procedures, so companies can get down to generating business. In a holiday-shortened week, any news regarding peaking infections will be bought into."
"Defensives like Pharma and FMCG, which has witnessed the least disruption in their business, will continue to be favoured, " he added.
On last Friday, the 30-share index BSE Sensex fell 674 points lower to close at 27,590 and Nifty fell 170 points to end at 8,083.
Commenting on market outlook, Ajit Mishra, VP - Research, Religare Broking said," Currently, the markets are largely being driven by developments w.r.t. coronavirus cases across the globe. A sustainable recovery would happen only when the cases start to recede in the country and the lockdown is eased gradually. We expect the next few sessions to remain volatile. Meanwhile, investors must opt for value-buying in select pockets of the Indian markets (FMCG, pharma, consumer durables) to build a long-term portfolio. On the benchmark front, Nifty has the next critical hurdle at 9,000."
On Nifty's outlook in the near term, Amit Shah, Technical Research Analyst with Indiabulls Securities said," We continue to have higher targets for the Nifty towards 9,300-9,500 zone. In the near term, 9,050 zone remains the resistance and once the index clears he mentioned resistance zone it is likely to build further momentum on the upside."
Share Market LIVE: Sensex climbs 1,300 points, Nifty at 8,400; JSW Steel climbs 5%
Wall Street indices climb 7% each on hopes of slowing coronavirus death toll
Investors gain over Rs 4 lakh crore as Sensex attempts recovery amid falling coronavirus cases globally | Sensex and Nifty logged biggest single day gains in terms of points. all sectors ended in green with banking, financials and pharma most popular. domestic indices followed the bullish trend from overseas. Sensex gained 2,476 points at 30,067, 50-share barometer NSE Nifty rose 708 points at 8,792. | Positive |
https://economictimes.indiatimes.com/news/company/corporate-trends/india-likely-to-be-one-of-the-few-bright-spots-in-world-economy-bharat-hari-singhania/articleshow/77651182.cms | Empower Your Corporate Journey with Strategic Skill Courses Offering College Course Website University of Western Australia UWA Global MBA Visit IIM Kozhikode IIMK Chief Product Officer Programme Visit IIM Lucknow IIML Chief Marketing Officer Programme Visit
NEW DELHI: Amidst coronavirus-related disruptions, advanced countries are set to experience prolonged pains, while India is expected to be one of the few bright spots in the world economy , according to JK Paper Chairman Bharat Hari Singhania.The pandemic has arrived at a time when the Indian economy was already experiencing a growth slowdown, as reflected in lower discretionary spending over the last 12 months, Singhania said in his address to shareholders in the company's annual report for 2019-20.He said in almost 170 countries, people are likely to face a decline in average income over the previous year as well."The complete lockdown in India is one of the most stringent, for (around) 70 days, where almost two-thirds of all economic activity came to a grinding halt. While the advanced countries are set to experience prolonged pains, India is expected to be one of the few bright spots in the world economy, sustaining positive growth at 4.2 per cent for 2019-20," Singhania said.For the country, he said, "unfortunately, the COVID-19 pandemic arrived at a time when the Indian economy was already experiencing a growth slowdown, as reflected in lower discretionary spending over the last 12 months, particularly in automobiles, consumer durables and high-end FMCG products."At a time when uncertainty prevails over the containment of COVID-19 and thereby the global economic recovery. "To ensure that the economic engine starts moving, governments across the world are providing fiscal stimulus of varying magnitude," he said.This, Singhania said, "is important as the end consumers should be provided an adequate safety net to revive demand. That would determine whether the projected V-shaped recovery, where India's GDP growth is expected to recover, will happen or not."Referring to the company's performance in FY20, he said at a time when the manufacturing sector in India is faced with significant spare capacity, with overall capacity utilisation falling to around 68 per cent in the December quarter, both JKPM (JK Paper Mills) and CPM (Central Pulp Mills) have been running at full capacity."This augur well for our planned expansion, where we are targeting to reach 8 lakh tonnes per annum (TPA) by March 2021," Singhania added.He further said, "the impetus will mainly be in the packaging board segment, while maintaining the focus on other segments too, particularly where we enjoy a leadership position in the market."JK Paper Vice-Chairman and Managing Director Harsh Pati Singhania said despite the setback from the COVID-19 triggered lockdown, the company's planned capacity expansions are progressing as per schedule, "although support from banks and financial institutions would be critical for us to adhere to timelines"."To take advantage of the growth momentum witnessed in the country's paper sector, JK Paper is working towards increasing its production capacity from 4.5 lakh TPA to 8 lakh TPA (including capacity of The Sirpur Paper Mills Limited) by next year," he added.This capacity augmentation is aimed at significantly expanding the company's packaging board capacity to take up growth opportunities on offer, with the proliferation of e-commerce, digital initiatives and growth upsurge in the pharmaceuticals sector, Harsh Pati Singhania said. | india is expected to be one of the few bright spots in the world economy, says chairman. india is expected to sustain positive growth at 4.2 per cent for 2019-20, he says. he says government is providing fiscal stimulus of varying magnitude. he says the government is preparing to provide a "safety net" to revive demand. a spokesman for the syrian government says it is preparing to launch a pilot program. | Positive |
https://economictimes.indiatimes.com/mf/mf-news/sensex-ends-66-points-higher-auto-bank-stocks-tank/articleshow/69857480.cms | The BSE benchmark Sensex ended 66 points higher Wednesday after a highly volatile session ahead of the US Federal Reserve meet outcome.After rallying nearly 400 points during the day, the BSE gauge settled 66.40 points, or 0.17 per cent, higher at 39,112.74. The index hit an intra-day high of 39,435.80 and a low of 38,881.05.The broader NSE Nifty closed almost flat at 11,691.45. During the day, the index touched a high of 11,802.50 and a low of 11,625.10.Top gainers in the Sensex pack included Tata Steel, Kotak Bank, NTPC, HDFC twins, PowerGrid and ONGC, rising up to 4.60 per cent.On the other hand, Yes Bank, Tata Motors, Hero MotoCorp, IndusInd Bank, M&M, Bharti Airtel and Bajaj Auto fell up to 5.54 per cent.The domestic market opened on a positive note following upbeat Asian bourses on hopes that the US Fed might cut rates in the near future, said Narendra Solanki, Head Fundamental Research (Investment Services) - AVP Equity Research, Anand Rathi Shares and Stock Brokers.Further, reports of US-China trade talks next week also gave a shot in the arm to global markets, he added.However, the markets trimmed most of their gains and came off the day's highs led by selling in PSU banks, auto and pharma and IT sectors."The markets also failed to draw any sense of relief with the Reserve Bank of India's statement that it will infuse Rs 12,500 crore of liquidity into the system through purchase of government bonds to ease prevailing liquidity conditions," Solanki said.Elsewhere in Asia, Hang Seng rallied 2.56 per cent, Shanghai Composite Index jumped 0.96 per cent, Nikkei soared 1.72 per cent and Kospi gained 1.24 per cent.Stock exchanges in Europe were trading on a mixed note in early deals.On the currency front, the Indian rupee was flat at 69.70 against the US dollar intra-day.Brent crude futures, the global oil benchmark, fell 0.55 per cent to USD 61.80 per barrel. | the broader nifty closed almost flat at 11,691.45. domestic market opened on a positive note following upbeat Asian bourses. reports of US-china trade talks also gave a shot in the arm to global markets. meanwhile, the u.s. dollar fell 0.55 per cent to a record low. chinese telecommunications giant tsb topped the list of gainers. | Positive |
https://economictimes.indiatimes.com/news/economy/foreign-trade/clear-indication-singapore-wants-to-diversify-supply-chains-needs-better-connectivity-indian-envoy/articleshow/76340789.cms | NEW DELHI: India and Singapore will have to improve connectivity in a post-corona world to boost bilateral trade ties , the Indian envoy to the Southeast Asian nation said Friday, asserting there is a "clear indication to us" that they want to diversify their supply chains and India is a priority.High Commissioner to Singapore Jawed Ashraf said connectivity is an important way of improving tourism and investment. "Once we come out of this crisis, which will affect the aviation sector the most, we would need to take a look at how we work on connectivity projects."Speaking from Singapore on 'India-Singapore Business Promotion, Challenges and Opportunities - Post Covid-19' at a webinar organised by PHD Chamber of Commerce & Industry, Ashraf said India can look to bolster ties with the city-state in manufacturing pharmaceuticals, electronics and in health technology and food processing sectors."In exports, there is a clear indication to us that Singapore is saying 'we want to diversify supply chain and you guys are priority'," he said."The immediate area we were looking at was processed and fresh foods, so we are talking about fruits and vegetables, marine products and also dairy products and they (Singapore) want to diversify... and we need to work in this area," he said.Ashraf said India needs to see how to leverage ties with Singapore on two objectives: to achieve self-reliance and to be a part of the global supply chain.Also, India is an area of high priority as Singapore looks at the evolving geopolitics, evolving trade tensions and the future of supply chains and markets, he pointed."So I can see a great opportunity for India as long as we are able to create necessary conditions. We must leverage their capacity to build industrial parks in India through which they can also bring in investments. Another area is developing logistics because Singapore has a great advantage in terms of logistics," the Indian envoy said.In education sector, he said, there is "a lot being done"."We need to get our young people to do internships together to spend time together in colleges and universities, doing social projects on climate change , afforestation, health together. We have to build this relationship with our youth to learn more about each other," he said.He said efforts are also being made to promote yoga and get Ayurveda the status of traditional medicine."That would require legislative changes. In the meantime, we have been able to get a lot of other hurdles and challenges out of the way for practice of Ayurveda and we are working with the government but legislation will continue to take some effort," he said."We marked the International Day of Yoga in 120 centres simultaneously last year because instead of doing it in one large venue which makes good photo opportunity, we wanted to take it to communities, to people," he said.Ashraf said India is also trying to secure special permissions from Singapore to facilitate movement of technicians directly to the city-state.During the webinar, he also talked about how religious tourism can boost ties.Giving an example of Madurai, a city famous for its temples and often called the cultural capital of Tamil Nadu, he said it could act as a direct connection with Singapore."Everybody knows there is a product. You go to see a particular site but you can see it for a couple of hours. What is your totality of experience? They all become part of the experience and I think we still have a long way to go into turning India's resources on tourism into a major tourism package," he said."It is something for us to think about that a country like Singapore has nothing by way of natural resources or heritage monuments but it gets 19 million tourists for a 709 sq km. The benefits of tourism for inclusive development holds regionally as well as in terms of employment generation," Ashraf said. | high commissioner to Singapore Jawed Ashraf says connectivity is an important way of improving tourism and investment. he says there is a "clear indication to us" that Singapore wants to diversify supply chains. he says India can look to bolster ties with the city-state in manufacturing pharmaceuticals, electronics and health technology. he says there is a "great opportunity" for India as long as we can create necessary conditions. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/garments-/-textiles/textile-cos-want-a-piece-of-the-growing-hygiene-products-pie/articleshow/76307293.cms | MUMBAI: As India learns to live with the virus, textile companies are keen to develop new products like anti-viral fabrics , masks, and other goods that cater to the growing market for hygiene products worth several hundred crores of rupees.Leading textile maker Arvind Limited will be launching a fabric it claims could destroy coronaviruses when droplets containing viral load land on it. The fabric was developed in collaboration with a Swiss company, which produces a chemical coating for fabric that lends anti-viral properties, said Kulin Lalbhai, executive director Arvind Limited.While initially the products would be launched under the Arvind Intellifabrix brand, going forward, the company will extend it to other consumer brands in its portfolio. Arvind markets brands like Arrow , US Polo Association and Flying Machine in India, amongst several others.The company aims to achieve about 10% of the annual menswear sales of Arvind Intellifrabrix of about Rs 1000 crore through this fabric, Lalbhai said. It will also sell masks and garments made from this material.“This is something that is quite the need of the hour. We don’t know how it shapes up in the long-term, but in the short-term we do believe that there is a natural requirement for this in the market,” Lalbhai told ET over the telephone.Rival Welspun is also looking to invest in products like disinfectant wipes, masks, coveralls, and disposable bedsheets that would be in high demand in current times.“We were looking to repurpose our businesses, and we just got the ISI approvals on our products. Next, we will be thinking of commercialising the same,” said Dipali Goenka, chief executive officer, Welspun India. Having received government orders, the company was also in talks with some pharmaceutical and FMCG companies. Welspun Group ’s newly opened business, Welspun Flooring , too has introduced a whole new range of safety products such as social-distancing carpets and is making anti-viral carpets and floorings.Not just textile makers, paint makers too are dishing out products catering to consumers’ increased hygiene requirements. While JSW Paints increased the production of its anti-bacterial decorative paints, leading paints maker Asian Paints went a step ahead and launched its own range of hand sanitisers. | textile maker arvind will launch fabric that could destroy coronaviruses. company will also sell masks and garments made from this material. welspun also looking to invest in disinfectant wipes, masks, coveralls, and disposable bedsheets. meanwhile, paint makers are dishing out products catering to consumers’ increased hygiene requirements. | Positive |
https://www.financialexpress.com/market/mindspace-business-parks-reit-files-offer-document-for-ipo-plans-to-raise-rs-4500-crore/2027630/ | Mindspace Business Parks REIT today filed its Offer Document with the Securities and Exchange Board of India (SEBI) for the public issue that will help it raise Rs 4,500 crore. The real estate investment trust, backed by K Raheja Group and private equity firm Blackstone, is aiming to raise Rs 1,000 crore through a fresh issue and Rs 3,500 crore from an offer for sale (OFS) where Blackstone and K Raheja Group will part with some part of their holdings. Mindspace Business Parks REIT filed its draft prospectus in December last year and a revised prospectus was filed in June.
According to the document filed with the market regulator, Mindspace Business Parks REIT is looking to raise Rs 1,250 crore from strategic investors. Mindspace Business Parks REIT will be the second public issue of a REIT after Embassy Office Parks REIT raised close to Rs 5,000 crore last year. Capital Income Builder, American Funds Insurance Series – Capital Income Builder, Capital Group Capital Income Builder, Capital Group Capital Income Builder (Canada), American Funds Insurance Series – Global Small Capitalization Fund, GIC Private Limited (for and on behalf of Government of Singapore), GIC Private Limited (for and on behalf of The Monetary Authority of Singapore), Fidelity Central Investment Portfolios LLC, Fidelity Emerging Markets Equity Central Fund – Real Estate Sub, and Fidelity Investment Trust: Fidelity Emerging Asia Fund are some of the strategic investors.
Mindspace Business Parks REIT, with a total leasable area of 29.5 msf and over 170 tenants. Although the investment trust was able to collect 99.4% of their Gross Contracted Rentals for the month of March 2020, properties were not fully occupied by their tenants for the months of April and May 2020. In financial year 2020, Mindspace Business Parks REIT earned Rs 1,600 crore from operations. The revised draft prospectus filed last month by the company says a 10.6% growth in revenue from operations is expected this fiscal while the same is expected to clock at 23% in financial year 2022.
Some of the marquee tenants of Mindspace include Accenture, Qualcomm, Barclays, JP Morgan, UBS, and Amazon. The bid-offer opens on July 27 and closes on July 29. Between financial year 2017 and financial year 2020, the company leased 7.6 msf of office space; achieved average re-leasing spreads of 28.9% on 3.0 msf of re-leased space and leased 4.6 msf of new area (including Pre-Leased Area and Committed Area, as of March 31, 2020) to 60 tenants; achieved re-leasing spread of 23.1% for 1.1 msf of area re-leased during fiscal year 2020. | the real estate investment trust is backed by K Raheja Group and private equity firm Blackstone. it is aiming to raise Rs 1,000 crore through a fresh issue and Rs 3,500 crore from an offer for sale (OFS) the company is aiming to raise Rs 1,250 crore from strategic investors. it will be the second public issue of a REIT after Embassy Office Parks REIT raised close to Rs 5,000 crore last year. | Positive |
https://www.moneycontrol.com/news/business/startup/sale-during-prime-day-doubled-against-previous-year-amazons-amit-agarwal-3028631.html | Rank 3 | Amazon | E-commerce company (Image: Amazon)
US-headquartered Amazon on Tuesday (October 9) said its sale during the first ten hours of early access given to prime members doubled the numbers reported during the 12 hours of prime day of the previous year.
The company, which kick-started its six day flagship sale event The Great Indian Festival, expects sales for all days to be much "bigger and explosive".
“We opened up prime early access for 12 hours. In the last 10-10.5 hours prime early access was already two times of what it was last year so we have seen people shop 100 percent more than they shopped the last year,” Amit Agarwal, Country Head, Amazon India said, adding that this sale will help the company break into the next 100 million customers in India.
Agarwal was speaking to the media just a few minutes before the midnight sale started.
While he did not comment on the growth in sale expected during the six day sale period, he said that typically the first ten hours of an open day is much “explosive and bigger”.
Rival Flipkart, which got acquired by US-based retailer Walmart for USD 16 billion, has also rung up its flagship sale The Big Billion Days the same day.
The stakes this year are high for Amazon as this time it fights Walmart in India much like the two behemoths compete in their home country.
“The stakes are high for us every single day. From our perspective trust is very easily lost, hard to earn. So it is not what we do in a five day or 30 days period that backs our future but what we do on a daily basis,” said Agarwal.
“We will leave the debate of who is bigger aside. For us what matters is building the next cent of very loyal customers that fuel the next five years of growth,” he added.
While the two companies haven’t disclosed the amount of sale expected during festive period, according to research firm Redseer Consulting, online retail firms led by Amazon and Flipkart may generate about USD3 bllion of sales during the five day period this year.
Amazon currently claims to have 150 million registered customers and India and is now looking to tap the next 100 million customers which will come from Tier 2-3 cities.
Small cities are important for Amazon with over 50 percent of sellers and 65 percent of customers coming from Tier 2 and 3 cities. Last month it also launched a Hindi version of its mobile app to deepen its presence in the smaller towns.
Agarwal said that the idea was to tap the customer base who would browse but would not shop.
“Now we are seeing a large part of that convert for the first time after the Hindi launch.
This period would allow us to break into meaningfully to the next 100 million just because the efforts are very focused on making things more affordable, and (introduction of) vernacular language,” he said adding the more languages will be launched soon.
Some of the top selling items on the Prime only day were smart television and phones.
The next 100 million customers indeed is a crucial number both for Flipkart and Amazon who lock horns for market leadership.
Agarwal claims Amazon to be the market leader even as the Flipkart Group that houses Myntra and Jabong besides Flipkart claimed to have garnered 80 percent market share during the sale season last year.
Flipkart is now focusing on low-priced items such as unbranded fashion and recharges, besides affordable payment options and Amazon is sticking to its tag line of being a platform for everything a customer needs.
To be sure, Flipkart's majority of the business comes from categories such as mobile phones.
“The challenge out there is to make sure that you are offering a daily convenience so that it becomes a daily habit and we through our focus across the board across categories see that happening. Prime is a good indication for us. So our objective is how we convert these 100 million into prime and prime up the next 100 million to start shopping so that over time they become prime members,” said Agarwal.
Over the last few years the awareness for e-commerce festive sale has been growing with social media and the television being the biggest source of awareness.
Mobile phones and fashion are the two most popular categories among the customers.
The willingness to purchase during the Diwali season has increased from 79 percent in 2017 to 100 percent in 2018, owing to the increase in discounts and promotional events run by the e-tailing platforms says Redseer adding that around 29% of the people surveyed by them plan to buy a mobile phone this sale season followed by 27% who want to buy fashion.
Interestingly, India which has conventionally been a cash economy with over 90 percent of e-commerce sale happening in cash, is witnessing a gradual shift by customers opting for digital modes of payment.
Around 26 percent of the customers said they used debit cards for making payments while 23 percent said they used cash on delivery in the Redseer report. Multiple offers given to them in partnerships with banks have fuelled the usage. | US-headquartered amazon kick-started its six day flagship sale event The Great Indian Festival. the company expects sales for all days to be much "bigger and explosive" amazon currently claims to have 150 million registered customers and India. the stakes are high for amazon as this time it fights Walmart in their home country. the company is also looking to tap the next 100 million customers in india. | 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.businesstoday.in/markets/commodities/rupee-vs-dollar-rupee-gains-25-paise-to-74-per-dollar-over-rbis-liquidity-measures/story/398393.html | The Indian rupee appreciated by 25 paise to 74 against the US dollar in early trade on Tuesday tracking positive opening in domestic equities and the Reserve Bank of India's liquidity enhancing measures.
Forex traders said investor sentiments recovered after the Reserve Bank on Monday hinted at a rate cut at the next Monetary Policy Committee (MPC) meet on April 3 and announced more liquidity enhancing measures.
The RBI announced another round of USD 2 billion dollar-rupee swap on March 23 and up to Rs 1 lakh crore of long-term repo operations as and when required.
At the interbank foreign exchange the rupee opened at 74.16, then gained further ground and touched a high of 74.00 against the US dollar, registering a rise of 25 paise over its previous close.
On Monday, rupee had settled at 74.25 against the greenback.
Meanwhile, investor sentiment remained fragile amid concerns over the impact of coronavirus outbreak on the global economy, forex traders said.
The number of deaths around the world linked to the new coronavirus has topped 7,000.
Domestic bourses opened on a positive note on Tuesday with benchmark indices Sensex trading 407.89 points higher at 31,797.96 and Nifty up by 118.45 points at 9,315.85.
Foreign institutional investors (FIIs) remained net sellers in the capital market, as they sold equity shares worth Rs 3,809.93 crore on Monday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.90 per cent to USD 30.62 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against the basket of six currencies was trading 0.03 per cent lower at 98.04.
The 10-year government bond yield was at 6.23 per cent in morning trade. | rupee rose 25 paise to 74 against the US dollar in early trade on monday. the rupee opened at 74.16, then gained further ground and touched a high of 74.00. domestic bourses opened on a positive note with benchmark indices Sensex trading 407.89 points higher at 31,797.96 and Nifty up by 118.45 points at 9,315.85. | Positive |
https://www.financialexpress.com/money/mutual-funds/dos-and-dont-of-mutual-funds-investment-strategy-to-follow-in-these-times/1935389/ | After a sharp fall in markets, all key valuation metrics such as P/E, P/B, and Market Cap/GDP indicate that equities are firmly in the attractive zone. We have also witnessed that policymakers across the globe are increasingly stepping up to the challenge, with several large-scale support packages announced to counter the economic shock caused by the spread of COVID-19 pandemic. The steep rate cut has been announced by the major banks at one end and on the other side, global fiscal stimulus totals $7 trillion with more in the offing. Given the scale of the stimulus package, fearful sentiments, and attractive valuations, we believe every rupee invested at current levels could yield a favourable risk-reward for the long-term investors.
Let us understand the investment strategy one can follow in these times –
Do’s:
1. Start investing through Systematic Transfer Plans (STP): For those who have investible cash, it may be prudent to increase the allocation to equity. It is, however, apt to spread your investments over the next few months or so. In current market conditions, investors can look at large-cap or multi-cap funds as in a challenging environment, sector leaders with relatively stronger balance sheets, higher earnings visibility, strong cash flows and management with a good track record tend to do well. The current fall was led by intense selling pressure from FIIs, Quant Funds, and ETFs which primarily invest in large-cap stocks. So we feel that once things get stabilized or some vaccine is invented, it is the large caps, particularly the growth-oriented quality stocks that will rebound first.
2. Top up your SIPs: Investors with ongoing Systematic Investment Plans(SIPs) should continue with the current SIPs if they can’t increase the amounts. The ongoing correction is a good opportunity for rupee-cost averaging, which is one of the tenets of SIP
3. Review your asset allocation: It is a good time to revisit the portfolio’s asset allocation. Such market condition provides a good entry point for the investors sitting on the fences. For an equity-oriented investor, it is time to shift money to equity, albeit in a staggered manner.
Dont’s:
1. Avoid panic redemption: Panic selling in the current environment can cause considerable harm to long term portfolio returns. Investors could end up selling at throwaway prices what was accumulated through a long accumulation journey.
2. Don’t stop SIPs: It’s not a time to stop the SIPs as it will defeat its purpose of rupee cost averaging. It’s a perfect time to increase the SIPs for existing investors and start the SIPs for the new investors. Empirical data lend credence to the fact that one who invested at this valuation level in the past has generated enormous wealth over the long term (5-7 years).
3. Don’t violate your asset allocation: Your asset allocation reflects your risk-taking ability as an investor. Investors should invest keeping in mind their medium-term needs for cash, regular income needs, and other assets in the portfolio.
4. Do not buy in bulk quickly: Many investors could tend to jump in too quickly. There is no way to call an exact bottom, nor can we tell how far it is. A suitable approach is to spread investments in small parcels over the next few months or quarters.
(By Bajaj Capital Research) | after a sharp fall in markets, all key valuation metrics such as P/E, P/B, and Market Cap/GDP indicate that equities are firmly in the attractive zone. for an equity-oriented investor, it is time to shift money to equity, albeit in a staggered manner. avoid panic redemption in the current environment can cause considerable harm to long-term investors. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/maharashtra-govt-inks-mous-worth-rs-16000-crore-with-12-companies/articleshow/76392131.cms | MUMBAI: Desperate to restart the economy which has taken a hit by coronavirus pandemic , the Maharashtra government on Monday signed MoUs worth Rs 16,000 crore with companies spanning various industries, including two Chinese units, under its " Magnetic Maharashtra 2.0 " initiative. The companies are from diverse sectors like automobile, logistics, banking, engineering and mobile production, a state government official said.The business pacts were signed by Industries Minister Subhash Desai of the Shiv Sena on behalf of the state government."We will facilitate all the companies that are willing to set up their plants in various parts of Maharashtra. They will face no hurdles in setting up their units," said Chief Minister Uddhav Thackeray The official said representatives of 12 countries including the USA, China, Singapore and South Korea among others, were present on the occasion."The total investment is Rs 16,030 crore. The MOU signing was part of the 'Magnetic Maharashtra 2.0' initiative," he said, adding that it was the first such programme after Thackeray became CM last November. | the companies are from diverse sectors like automobile, logistics, banking, engineering and mobile production. the investment totals Rs 16,030 crore. the government is trying to restart the economy which has taken a hit by coronavirus pandemic. the state has signed two moUs worth Rs 16,000 crore with companies spanning various industries. the pacts were signed by industries minister Subhash Desai of the Shiv Sena. | Positive |
https://economictimes.indiatimes.com/blogs/et-editorials/streamlining-logistics-during-lockdown/ | It is welcome that the initial glitches in the movement of essential goods — from the manufacturer to warehouses, from warehouses to distribution centres and thereon, the last mile — are being sorted out, finally. Clear instructions have gone out from the home, roads and commerce ministries. Digital tools are being used and have to be used more widely still, in everything from upstream logistics to sanitised, authenticated last-mile delivery. The likes of Walmart and Amazon can help in this regard.
Since passenger trains are off the tracks, goods trains can move fast and help with inter-state movement of goods. The roads ministry is reportedly setting up a 24×7 helpline number for truck drivers for speedy help in case of any interruption on highways; it is crucial that state and local authorities ease, rather than hinder, movement of trucks.
The Indian Global Positioning System needs to be gainfully leveraged to track produce deliveries with accuracy. Further, it is crucial that the public distribution system and fair price shops keep their supply lines intact and there is prompt delivery to the beneficiaries, preferably at the latter’s doorstep. We need to call upon civil society organisations and others to take up the task in an orderly manner. e-Marketplaces must be allowed to deliver their orders. Traditional markets must also employ the likes of Ola and Uber to deliver necessities to neighbourhoods.
Perishables like fruit, vegetables and milk all call for greater proactivity. It would make perfect sense to suspend the Agricultural Produce Marketing Committee Act, so that civil society groups, NGOs and even agricultural companies can directly procure from the farm and supply to consumers. A fully functional eNam, the online National Agriculture Market, would help.
Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Economic Times.
END OF ARTICLE | digital tools are being used and have to be used more widely. the likes of Walmart and amazon can help in this regard. the roads ministry is reportedly setting up a 247 helpline number for truck drivers for speedy help in case of any interruption on highways. e-Marketplaces must be allowed to deliver their orders. traditional markets must also employ the likes of Ola and Uber to deliver necessities to neighbourhoods. | Positive |
http://www.livemint.com/Money/U1PwC89atXzNGNgjhBtjwO/Gold-prices-up-on-jewellers-buying-global-cues.html | New Delhi: Gold prices rose by Rs50 to Rs31,300 per 10 gram on Tuesday on steady buying by local jewellers and positive global cues. Silver prices too gained Rs50 to Rs39,250 per kg due to increased offtake by industrial units and coin makers.
Traders said sentiment remained strong on the back of a positive trend overseas where gold held firm, buoyed by a weaker dollar, while investors waited for US inflation data for clues on the pace of interest rate hikes. Moreover, increased buying by local jewellers to meet ongoing wedding season demand at domestic spot market, supported the uptrend in gold.
Globally, gold rate was up 0.33% to $1,326.90 an ounce and silver rose 0.48% to $16.61 an ounce in Singapore.
In the national capital, gold of 99.9% and 99.5% purity gained Rs50 each to Rs31,300 and Rs31,150 per 10 gram, respectively. The metal had gained Rs300 in last three days. Sovereign however remained flat at Rs24,800 per piece of eight gram.
In line with the overall trend, silver ready hardened by Rs50 to Rs39,250 per kg and weekly-based delivery by Rs275 to Rs38,265 per kg. Silver coins however remained unaltered at Rs74,000 for buying and Rs75,000 for selling of 100 pieces.
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Topics | silver prices too gained Rs50 to Rs39,250 per kg due to increased offtake by industrial units and coin makers. gold rate was up 0.33% to $1,326.90 an ounce and silver rose 0.48% to $16.61 an ounce in Singapore. gold of 99.9% and 99.5% purity gained Rs50 each to Rs31,300 and Rs31,150 per 10 gram. | Positive |
https://www.financialexpress.com/industry/technology/with-rise-in-cloud-migration-druva-to-expand-workforce-in-india/2134788/ | Druva, a cloud data protection and management company, is planning to ramp up its workforce in India within the next 12 months. The company is looking at accelerating growth through 2021 as it sees a greater need for its cloud data protection technologies during these times of increased cloud migration.
Druva is one of the unicorns in the tech space in India. Founded in Pune by Jaspreet Singh and Milind Borate, it is a privately held company with headquarters in Sunnyvale, California. It is funded by Sequoia Capital, Viking Global Investors, Tenaya Capital, Riverwood Capital and Nexus Partners.
Druva delivers data protection and management for the cloud era. Its cloud platform is built on AWS and offered as-a-service to halve costs and free customers from the burden of unnecessary hardware, capacity planning and software management.
Druva has achieved 100% growth in the Asia-Pacific and Japan markets fueled by rapid cloud adoption. Its data centre workload revenue has been rising as startups and legacy companies embrace a cloud-first approach for data protection. The company has grown its data centre workload revenue more than 100% in the last 12 months and worked with 135 enterprises — including Adani Wilmar (India), NTT DATA (Japan), McConnell Dowell (Australia), Gold Peak (Hong Kong) and UNIADEX (Japan) — to navigate their digital transformation initiatives.
Druva has a workforce of 500 in Pune and is expanding its local presence. It is on track to add 15-20% to its headcount in Pune over the next few months.
Borate, co-founder and chief development officer, said cloud’s accessibility, robust security architecture and cost savings have made it the defining technology of 2020. “Built on that same principle, cloud-based data protection is bringing thousands of companies the business agility and data resilience needed to adapt with today’s dynamic marketplace. Druva is perfectly positioned to address this market and after a successful 2020, it is now focused on further accelerating growth through 2021,” Borate said.
Druva also extended remote working for all employees till June 2021. The company said the remote working model has minimally impacted the company’s regular activities, including onboarding, business delivery, timely promotions and annual salary increases. Once a return to office is deemed safe, the company intends to roll out a phased approach, with a hybrid model for some departments.
According to an IDC estimate, Asia Pacific is expected to have the highest revenue growth rate for cloud system and service management software between 2020-24, outpacing both the Americas and EMEA. Exponential growth in data and higher ransomware risks combined with rising data governance risks and regulations, are driving organisations to new technologies and solutions. | company is looking at accelerating growth through 2021. sees greater need for its cloud data protection technologies. a workforce of 500 in Pune and is expanding its local presence. a remote working model has minimally impacted the company’s regular activities. a return to office has minimally impacted the company’s regular activities. a return to office has minimally impacted the company’s regular activities. | Positive |
https://www.moneycontrol.com/news/business/markets/pharma-sector-sits-pretty-amid-market-turmoil-5-stocks-that-you-can-buy-5130401.html | Representative image
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Pharma stocks have been in the focus amid the turmoil caused by the coronavirus outbreak, as experts and brokerages say that the sector is better placed to navigate the economic crisis brought by the pandemic.The highly contagious virus has taken a huge toll on most sectors, but pharma companies have withstood the carnage, with some stocks delivering healthy returns.
Experts say that the pharma and healthcare sectors have a crucial role in supporting the government and people and are doing a great job by managing medicine supplies as demand remains strong.
The BSE Healthcare index has closed in the green in the last four consecutive sessions. BSE Healthcare has emerged as the top gainer among sectoral indices, jumping 29 percent since March 25, the day the three-week lockdown began.
Pharma, as a sector, has emerged a strong contender to drive the next leg of the rally. In anticipation, pharma stocks have seen a huge run-up in the last few days.
Since February 1, the BSE Healthcare index is 4 percent up against a 23 percent fall in the Sensex, as of April 9 close, data from Ace Equity shows.
Shares of IOL Chemicals & Pharmaceuticals, Abbott India, Torrent Pharmaceuticals, Cadila Healthcare and Cipla have surged up to 44 percent since February 1.
However, shares of Take Solutions, Shalby, Jubilant Life Sciences, Aster DM Healthcare and Piramal Enterprises have cracked up to 50 percent during the period.
The road ahead
Brokerages say the 21-day lockdown has sprung several unprecedented challenges for the sector such as lower employee attendance, logistic problems and a shortage of accessories like packaging and labelling material. These have led to lower capacity utilisation at most plants.
The sector, however, is well-positioned to endure the coronavirus pain, brokerages say.
"In pharma, barring few supply-related disturbances, we do not envisage material earnings impact in FY21. Also, note that in this unprecedented global lockdown, pharma and healthcare services, being at the top layer of essential services, remain exempted everywhere," said brokerage firm ICICI Direct.
HDFC Securities has a positive view on the sector, too. The brokerage says its positive stance on Indian pharma is premised on sector’s relative resilience to coronavirus disruption, favourable currency tailwinds and stable outlook for India and the US business.
HDFC forecasts 11 percent growth for its covered companies over the next two years. However, the brokerage identifies extended lockdown as a risk, as it can impact demand and manufacturing.
Moreover, a delay in key approvals, delay in the USFDA plant resolution due to travel advisory, EM markets currency risks and subdued demand are seen as the key risks for the sector.
Stocks to consider
Brokerages say while in the short term most companies will bounce back from the last five years of underperformance, this time around, the leader will be different. Hence, one needs to choose stocks carefully.
Edelweiss Broking suggests following five stocks:
Ajanta Pharma
Edelweiss sees Ajanta Pharma as a turnaround story. The brokerage expects the company's margin to improve to 31 percent by FY22 from 27 percent in FY19.
It expects FY20/21/22 EPS of Rs 53/70/83, respectively. At its April 8 closing price of Rs 1,367.5, the stock trades at 23/19/16 times FY20/21/22E P/E and FY22E RoCE of 20 percent.
Degrowth in the Africa business is a point of worry but Edelweiss is quite comfortable with Ajanta's US and India numbers. "We expect Africa to grow by 12 percent over the next two years," Edelweiss said.
Abbott India
Edelweiss sees it as a CAGR story. The brokerage highlighted that Abbott India has seen strong sales growth (organic: 15 percent CAGR; inorganic: 18 percent) in the last 10 years compared to an average 11 percent growth by other Indian pharmaceutical players.
This has been driven by strong execution and acquisition of Piramal Healthcare’s domestic formulation business in May 2010, Edelweiss said.
The brokerage expects FY20/21/22E EPS of Rs 313/360/416. At its April 8 closing price of Rs 17,481, the stock trades at 56/49/42 times FY20/FY21/FY22E P/E and FY22E RoCE of 23 percent.
"The Indian government periodically issues a price cap on certain essential drugs. About 40 percent of Abbott’s portfolio falls under Drug Price Control Orders (DPCO), so any incremental coverage would pose a risk to earnings," Edelweiss said.
Dr Reddy’s Laboratories
It is 'new management, new story' theme for Edelweiss as India business is a key focus for the company now.
Edelweiss highlights that despite its strong innovation capabilities since inception, Dr Reddy’s Laboratories is not even among the top 10 domestic formulation players. Its India business was never a focus area for the management, which led to market share loss over a period of time.
"But for the new management, India will be a key focus area. It recently acquired a large portfolio from a competitor," Edelweiss said.
The brokerage expects FY20/21/FY22 EPS of Rs 120/150/174. At its April 8 closing price of Rs 3,683, the stock trades at 31/25/22 times FY20/21/22E P/E and FY22E RoCE of 20 percent.
Any delay in gCopaxone launch can impact FY22E earnings of the company significantly, said Edelweiss. Also, any USFDA issue with its Bachupally facility is a risk.
Laurus Labs
Edelweiss sees the company as a classic investment story.
The brokerage thinks the earnings of the company will shoot up to Rs 34 per share in FY21E from Rs 9 per share in FY19.
The stock trades at 12 times FY21E P/E. RoCE is seen improving to 13 percent in FY21E from 6 percent in FY19.
Edelweiss expects FY20/21/22 EPS of Rs 24/34/37. At its April 8 closing price of Rs 391, the stock trades at 17/12/11 times FY20/21/22E P/E and FY22E RoCE of 14 percent.
The brokerage said its margin assumption for FY21/22 is 22 percent but any pricing pressure in API/formulation can impact EPS significantly.
Biocon
It is a participant of mega theme -- biosimilar and TINA, said Edelweiss.
Edelweiss points out that the total biosimilar market size was pegged at $20 billion in 2019 by various studies. The same is expected to touch $60 billion by 2025, the highest growth category for pharma companies globally.
The brokerage is of the view that Biocon has proven its mettle by launching Pegfilgrastim ($4 billion) in the US last year. In March, it received approval for Lantus ($6 billion).
The brokerage expects FY20/21/22 EPS of Rs 7.5/10.2/13.4. At its April 8 closing price of Rs 327, the stock trade at 43/32/24 times FY20/21/22E P/E and FY22E RoCE of 12 percent.
Any facility-related USFDA action is a risk for the stock.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | pharma stocks have been in the focus amid the turmoil caused by the coronavirus outbreak. the sector is better placed to endure the economic crisis brought by the pandemic, experts say. the pharma and healthcare sectors have a crucial role in supporting the government and people. the bse healthcare index has emerged as the top gainer among sectoral indices. | Positive |
https://www.moneycontrol.com/news/business/economy/rbi-has-room-to-cut-rates-government-official-4999921.html | RBI Governor Shaktikanta Das (PTI)
India's central bank has room to cut rates as inflation is set to decline in coming months, the government's principal economic adviser, Sanjeev Sanyal, said on TV channel ET Now.
Sanyal said in the interview that inflation is likely to fall by at least 100 basis points and that easing interest rates is one of the tools available to shield the Indian economy from the impact of the coronavirus.
"Underlying inflation pressures are within control and headline inflation will come down sharply," Sanyal told ET Now. | india's central bank has room to cut rates as inflation is set to decline. easing interest rates is one of the tools available to shield the economy from the impact of the coronavirus. easing interest rates is one of the tools available to shield the economy from the impact of the coronavirus. easing interest rates is one of the tools available to shield the Indian economy from the impact of the coronavirus. | Positive |
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ACC, one of the top cement companies in India having a capacity of 33.4 mn tonnes, posted a strong set of earnings in the first quarter of 2018 on the back of healthy volume growth from both the Cement and Ready Mix Concrete (RMC) segments. The results came ahead of expectations as the company reported a strong improvement in operating margins resulting in double-digit EBITDA growth.
Strong operational performance
Buyout demand in the eastern markets drove up cement volumes. The company reported an increase of 7.7% YoY (year on year) in cement volume while the RMC volumes grew 16.7% YoY.
Realisations in the cement segment witnessed minor improvement QoQ (quarter on quarter). Overall, ACC reported a topline growth of 3.7% over the last quarter.
The operating performance metrics are not comparable YoY due to removal of excise duties and the introduction of GST last year.
On a QoQ basis, ACC benefited from lower raw material prices and stock purchases as well as lower employee expenses. However, the gains were partly offset by an increase in power and fuel costs as well as freight and forwarding expenses. Overall the costs dipped by ~1% which resulted in an improvement in EBITDA margin from 12.7% in the previous quarter to 13.6% in this quarter. Other expenses remained largely stable.
Key developments
The board of ACC has recommended the renewal of technology and knowhow agreement with Holcim Technology Ltd (which expired in December 2017) for a three-year period with no change in royalty conditions.
The pending merger of ACC with Ambuja Cements has been put on hold. Subsequently, the board of both companies have decided to enter into a Master Supply Agreement (MSA) which would be synergetic to both companies. The MSA would allow these companies to procure clinker, cement, raw materials from each other as well as use spare capacities on mutually agreed terms.
Growth Outlook
The growth outlook for the sector and company appears positive as the demand in the industry is expected to pick up over the next 6-12 months as the execution of infrastructure projects gathers momentum. Besides, government focus on affordable housing will further spur demand in the sector.
ACC would benefit from industry demand as well as potential synergies with Ambuja Cement. While the realisations continue to remain stable, the continuous increase in power and fuel costs (linked to rising pet coke prices) and freight expenses would keep a check on the margins.
Taking into account its growth prospects, the stock seems reasonably priced at an EV/LTM EBITDA multiple of 13.5x.
For more research articles, visit our Moneycontrol Research Page. | ACC reported a strong set of earnings in the first quarter of 2018 on the back of healthy volume growth from both the Cement and Ready Mix Concrete (RMC) segments. the company reported an increase of 7.7% YoY (year on year) in cement volume while the RMC volumes grew 16.7% YoY. ACC benefited from lower raw material prices and stock purchases as well as lower employee expenses. | Positive |
https://economictimes.indiatimes.com/magazines/panache/motorola-one-power-review-the-device-puts-an-end-to-battery-anxieties/articleshow/66159205.cms | Rs 15999****Stock & bloat-free Type-C, 5,000mAh, 205 grams Android interface, 2 to 3 day battery life , includes fast charging (TurboPower), good performance, metal back panel & solid build qualityBattery anxiety is a real thing — it’s why power banks are so popular. Apart from making hardware that’s more efficient, the obvious way to improve battery life in a smartphone is to fit a physically larger battery inside. And that’s exactly what Motorola has done with the One Power.The phone name is quite literal actually: One for Android One, and Power because it has a massive 5,000mAh battery inside. That brings with it another set of downsides: the phone becomes thicker, bulkier, heavier and generally goes against what many people want in a smartphone. It’s the classic adage of ‘win some, lose some’.Motorola phones always had close-to stock Android interfaces but the partnership with the Android One platform means that you’re assured of timely updates. And we’re not just talking about security updates either — the phone is going to get updated to Android 9.0 soon and will continue to be supported by Google directly for the next two years at a minimum.As is usual for Android One, you get the rounded icons, zero bloatware apps, built in Assistant and Google lens. Motorola has added their own enhancements like Dolby Audio, Moto Display (lockscreen notifications), screen colour temperature adjustment and Moto Actions (flashlight and camera gestures).The design of the phone is unremarkable but it has an air of efficiency and no-nonsense. The notch design has been done to death so we hardly consider that an advantage. It does have a metal back, sturdy design, triple slot (dual SIM + expandable memory), 3.5mm jack, USB type C port (fast charger included) and a conveniently placed rear fingerprint scanner.The Snapdragon 636 processor is a good performer and you won’t find a cause to complain, especially for the asking price. As for the camera app, it’s fairly basic — includes a portrait mode (the only place where the depth sensing camera comes into play), auto mode and expert mode (all manual controls). Response is snappy and results are acceptable in good light. However, there is a tiny bit of shutter lag and we’ve seen far better camera performance from competitors like the Mi A2. The selfie camera fares better actually — it offers good results in most scenarios and also has a front LED flash.Other things we like are the Widevine L1 certification (it can stream Netflix and others at full HD unlike many others at this price range) and the stellar LTPS IPS display (nice colour, high resolution and high viewing angles).The use case for this phone is clear: it’s for the person who wants a fuss-free phone that lasts really long without constantly plugging in to a power outlet. Asus’ Zenfone Max Pro M1 does pretty much the same thing for cheaper. If you’re not too concerned with battery life but need a more stylish phone with better performance, consider the Realme 2 Pro. For anyone looking for better camera performance, consider the Mi A2. | Motorola One Power has a massive 5,000mAh battery inside. it has a metal back, sturdy design, triple slot (dual SIM + expandable memory), 3.5mm jack, USB type C port (fast charger included) and a conveniently placed rear fingerprint scanner. the phone is going to get updated to Android 9.0 soon and will continue to be supported by Google directly for the next two years at a minimum. | Positive |
https://economictimes.indiatimes.com/markets/stocks/earnings/how-india-inc-managed-a-healthy-9-10-earnings-upgrade-post-q2/articleshow/79507112.cms | MUMBAI: September quarter corporate earnings turned out better than expected, and led to a healthy 9-10 per cent earnings upgrades for Nifty stocks’ FY21 estimates, largely as companies doubled down on their cost-cutting measures amid the Covid-19 pandemic.“One of the key and defining features of this performance was the better-than-expected focus on cost mitigation measures, apart from demand recovery and a healthy tailwind from gross margin expansion,” Motilal Oswal analyst said in a note on November 25.In the quarter ended September 30, companies under Motilal Oswal’s coverage posted a healthy 9 per cent Ebitda expansion against expectation of a flattish YoY performance and despite a 7 per cent year-on-year decline in revenues. All key sectors, barring capital goods and utilities, reported expansion in operating margins.In fact, excluding-Financials, the Nifty pack reported 310 basis points (bps) YoY Ebitda margin expansion to 19.8 per cent, while the brokerage’s coverage universe, excluding financials, saw a 320 bps YoY margin expansion to 19.4 per cent.The brokerage said operating costs for its coverage universe declined 11 per cent YoY, and within the operating cost bucket, other expenses declined 8 per cent YoY, pointing toward continued cost control initiatives implemented by companies.Cement (10 per cent YoY drop), automobiles (-11 per cent), technology (-14 per cent), and oil & gas (-21 per cent) have been the key sectors to report double-digit decline in other expenditure, while utilities (+18 per cent), retail (+4 per cent),and banks (+4 per cent) YoY have seen an increase in other expenditure over this period.“The tailwind of cheaper raw material prices and demand recovery, coupled with better pricing power owing to supply constraints and lower discounts resulted in sharp gross margin expansion for our Universe,” the brokerage said in a note.The gross margin for the Motilal Oswal universe (129 companies, ex-BFSI, IT, and telecom) expanded 600 bps YoY to 42 per cent.Cyclical and commodity sectors such as metals and oil & gas saw a maximum of 850 bps and 490 bps gross margin expansion YoY, respectively. On the other hand, retail, consumer and automobile sectors have seen 280 bps, 100 bps, and 50 bps contraction, respectively, in gross margins.That said, while gross margin expansion and overhead cost reduction clearly propelled operating margin expansion, other elements of P&L costs saw a marginal rise. Staff costs expanded a modest 4 per cent YoY for the Motilal Oswal coverage universe companies.Sectors that have seen a rise in staff cost, which include consumer (+9 per cent), utilities (+9 per cent), banks (+9 per cent), healthcare (+8 per cent), oil and gas (+8 per cent) and IT (4 per cent). Sectors that saw a YoY contraction in employee cost are media (-21 per cent), retail (-20 per cent), cement (-6 per cent), and metals (-5 per cent).However, the brokerage expects costs to rise in some areas, as companies open up more, and normalcy gradually returns.“Going forward, we expect some elements of P&L costs to make a comeback as the economy opens up more and travel cost and other overheads gradually return,” Motilal Oswal said adding that raw material costs are going up sequentially for several sectors such as consumer, auto, and cement.“Also, cost reduction has been factored in, and consequently, there is limited room for surprise now, in our view,” the brokerage said. | September quarter corporate earnings turned out better than expected, and led to a healthy 9-10 per cent earnings upgrades for Nifty stocks’ FY21 estimates. all key sectors, barring capital goods and utilities, reported expansion in operating margins. the brokerage said operating costs for its coverage universe declined 11 per cent YoY, and within the operating cost bucket, other expenses declined 8 per cent YoY. | Positive |
https://www.financialexpress.com/auto/bike-news/royal-enfield-to-launch-a-new-bike-every-quarter-28-new-motorcycles-coming-in-next-7-years-classic-himalayan-thunderbird-bullet-electric/2129942/ | Vinod K Dasari, CEO, Royal Enfield told PTI, “We have now got a product plan for the next five to seven years. We are looking at launching a new model almost every quarter and I am not even talking variants and colour options kind of stuff…28 models at least (in the next seven years) that’s the bare minimum.”
Royal Enfield recently launched the Meteor 350 and the same is the first model to be based on the company’s J-platform that will spawn numerous products going forward in the future. Now, after the launch of the Royal Enfield Meteor 350, the company itself confirmed that it will be launching at least 28 models in the next seven years. On these lines, the Chennai-based bikemaker has plans to introduce one new bike every quarter. In addition to this, the company is also planning to set up an assembly unit in Thailand in the coming six to twelve months followed by Brazil in the near future. Vinod K Dasari, CEO, Royal Enfield told PTI, “We have now got a product plan for the next five to seven years. We are looking at launching a new model almost every quarter and I am not even talking variants and colour options kind of stuff…28 models at least (in the next seven years) that’s the bare minimum.
Watch our Royal Enfield Meteor 350 video review:
All these (new models) will play in the mid segment — 250cc to 750 cc. That’s our focus area…and we will continue to strengthen it by bringing in evocative, accessible, and truly global line of products.” Moreover, Dasari adds, “We have adequate production capacity for the next 2 to 3 years, and therefore, a significant chunk of our investments will be directed towards the development of new products, technology, and capability enhancement, and global expansion.” Speaking on Royal Enfield’s global performance, Dasari said, “Commenting on the company’s global performance, he said, “Our growth in the international markets has been phenomenal over the last few years and we are excited about further expanding our presence globally.
We have recently set up a new assembly unit in Argentina and have plans to set up an assembly unit in Thailand in the next 6 to 12 months followed by Brazil in the near future.” Needless to say, Royal Enfield is looking aggressive when it comes to its upcoming product strategies for India. While there are many models that will arrive in the future, the ones that we know of so far include the next-generation Classic 350 that will be based on the same J-platform as the Meteor 350, RE’s upcoming flagship 650cc cruiser, a souped-up Himalayan, electric bikes and more.
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(With inputs from PTI) | Royal Enfield recently launched the Meteor 350 and the same is the first model to be based on the company’s J-platform. the company has plans to introduce one new bike every quarter. in addition to this, the company is also planning to set up an assembly unit in Thailand in the coming six to twelve months followed by Brazil in the near future. a significant chunk of our investments will be directed towards the development of new products, technology, and capability enhancement, and global expansion. | Positive |
https://www.businesstoday.in/markets/company-stock/coronavirus-crisis-helps-reliance-jio-facebook-mukesh-ambani-reliance-industries/story/405903.html | From its Silicon Valley-like campus near Mumbai, Indian billionaire Mukesh Ambani's Jio telecom carrier is emerging as a winner from changes in the way Indian consumers plug into a digital economy made more urgent by the coronavirus pandemic.
For Indian shoppers who prefer to order online, it is launching a grocery ordering service with Facebook Inc's popular WhatsApp messaging. For Bollywood fans who would prefer to avoid a crowded theater, it is readying same-day-release on the Jio platform.
Those plans had been in the making for months, but the pandemic has given them a shot in the arm. India's 10-week lockdown has also led to a surge in demand for data, boosting Jio's phone and broadband offerings.
And, over the past six weeks, the digital business of Ambani's Reliance Industries Ltd, known as Jio Platforms, raised a striking $10 billion from global investors.
The investments, including $5.7 billion from Facebook and money from private equity firms Silver Lake, Vista Equity Partners, General Atlantic and KKR & Co Inc, value Jio Platforms, where Reliance last year announced it was consolidating its digital offerings, at roughly $65 billion.
They also put Jio on track toward a goal Ambani described last year: an eventual listing that would mark a milestone for his effort to unite the digital offerings of his sprawling conglomerate, from set-top boxes to e-commerce and home automation.
Reliance declined to make Ambani, Asia's richest man, available for interview or respond to a detailed list of questions.
But interviews with a dozen people familiar with the company's development efforts show how Reliance has pushed aggressive pricing for a one-stop digital commerce platform that incorporates features modeled on the American tech heavyweights it sees as rivals.
When Jio set out to launch a set-top box, it tasked a team with analysing - and in some cases replicating - some 100 features of an Apple TV set-top box last year, according to a person close to the project and internal Jio documents seen by Reuters.
"Presentation and listing of menu items should be similar to Apple TV," one of the documents says, assigning the task a "Priority 1" rating.
One document compares the products' features, like average weight. Another includes instructions like "Matching the background theme of Launcher (home screen) to that of Apple TV."
Jio's set-top box comes included in its broadband plans, with the cheapest annual deal costing around $110, whereas Apple TV 4K is selling for around $210 to $230 on Indian e-commerce sites.
Apple Inc did not respond to requests for comment.
Jio also analysed Amazon's Alexa voice assistant with the aim of coming up with its own offering, according to one person with knowledge of Jio's strategy. "They wanted to say: 'Hey Jio, can you switch on the lights?'," said the person. Reuters could not determine the status of the project. Amazon declined comment.
In other areas, Ambani has shown a willingness to bet big on emerging technology. In India, Jio was an early adopter of voice-over-LTE, which is more efficient than traditional networks. The company expects that to give it an edge in rolling out 5G services.
"Few companies have the potential to transform a country's digital ecosystem in the way that Jio Platforms is doing in India," said KKR's co-founder Henry Kravis in announcing his investment.
In partnership with Facebook's WhatsApp, Reliance has launched a new service that allows consumers to order from their local grocery stores at a time when many Indian consumers, like shoppers elsewhere, are trying to minimize trips to stores. The service was rolled out in April in three areas of Greater Mumbai.
"Reliance wants to be a global technology powerhouse," said Rahul Malhotra, an analyst with Bernstein. "With the Facebook partnership, they will build the WeChat of India," he added, referring to Tencent Holdings' messaging, payments and social media app that is ubiquitous in China.
TOTAL RELIANCE
Ambani dominates a dizzying array of sectors: Jio is India's leading telecoms carrier, Reliance Retail Limited is its top brick-and-mortar retailer, Reliance's Network18 Media & Investments Limited is one of its biggest news networks, and Reliance's Jamnagar is its largest oil complex.
His empire also produces films at Jio Studios and runs India's top soccer tournament, the Indian Super League.
By providing Indian consumers access to everything from groceries and clothes to banking and home automation via an integrated system running through Jio, Ambani hopes Reliance can become what he calls an "everything company."
To help back its retail push, Reliance in March asked an Indian logistics provider for some 5 million square feet of warehousing space, according to a person briefed on the plans.
That comes after a 2019 request for service, reviewed by Reuters, that said the company was seeking 1.1 million square feet of warehousing space that would be "expandable in future."
Reliance has not made public details of its warehousing space. By comparison, Amazon said in 2017 it had warehouses covering about 3 million square feet in India and has expanded since then. Amazon did not provide Reuters with an updated figure.
In addition to an eventual listing for Jio, Ambani has said he would look to list Reliance's retail operations as well.
Jio's other planned offerings include home viewings for films on the day of their theater release and networked security systems for cars.
But Jio's broadband rollout, which is key for many of its planned digital offerings, has hit glitches, in part because the company had not initially set up sufficient customer support services, according to two employees and internal chat messages reviewed by Reuters. And unlike in telecoms, Reliance has not offered steep discounts to attract new customers.
Ambani's ambition of creating a homegrown tech company took shape when Jio was launched in 2016 with aggressively priced data plans. Suddenly, migrant construction workers were video-chatting with their families, farmers were checking crop prices, and office workers were screening films during their commutes home on crammed trains.
Jio's competitors, then numbering around a dozen, were forced to slash prices, quit, or merge as Reliance pumped in at least $30 billion in oil-related earnings to subsidize prices. "We have to bleed others to death - I remember that as a refrain," said one former high-level Reliance executive, who asked not to be named.
Some rivals held out for longer than expected and Reliance ended up investing more than originally planned, according to a half-dozen sources who worked at Reliance or were briefed on the company's ramp-up.
Last year, Jio became India's No. 1 carrier by number of users. Meanwhile, rival Vodafone Idea Ltd, a venture between the Indian unit of Britain's Vodafone Group Plc and billionaire Kumar Mangalam Birla's Idea Cellular, has warned it may not survive having to pay about $4 billion in overdue levies and interest to the government.
RIL's Rs 53,124 crore rights issue subscribed 1.59 times; vote of confidence from investors, says Ambani
Share Market LIVE: Sensex drops 150 points, Nifty at 10,024; ONGC, HDFC, Indian Oil, Titan top laggards
Stocks in news: Aurobindo Pharma, DLF, Powergrid, ONGC, HPCL, Indian Oil, Bharat Petroleum and more
Moody's downgrades ratings of ONGC, HPCL, Indian Oil, Bharat Petroleum | a new service is being launched for grocery ordering and same-day release. the company is launching a smartphone ordering service with facebook's popular WhatsApp messaging. the company's digital business has raised a striking $10 billion from global investors. the investment puts the company on track toward a goal. a spokesman for the company says it is "very concerned" about the company's future. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/chasing-millionaire-dreams-tech-real-estate-infra-and-now-digital/articleshow/78164747.cms |
Mumbai: Centuries of investing history shows that some fever or the other catches investors at a given period that has a set pattern – from the beginning to end – be it the Dutch tulip mania, the US railroads, the UK’s South Sea bubble, last century’s tech bubble or India’s own infrastructure mania.To aim for riches is a basic human trait and there is no better place than the stock market to achieve it quickly, or so the belief goes. It is more so when something fanciful catches the attention about which few are knowledgeable.The latest fever sweeping through the nation, other than Corona, appears to be digital. Happiest Minds Technologies more than doubled on Thursday after receiving bids 150 times the shares it offered in an IPO.Investor euphoria is backed by the `uniqueness’ of the company that is `well-positioned’ to do earn profits in the world of digital. While 3,913 companies are available for trading on the BSE, there are few pure play digital businesses to buy.While international financial markets are strewn with episodes of booms and busts, India’s own in a limited period since the liberalisation of 1991 are plenty.Since the early 1990s when an insurance company clerk grabbed the headlines with his Toyota Lexus, there have been many cycles. Between the rise of Harshad Mehta and now, the Indian stock market has witnessed booms and busts in shadow banks, technology firms , real estate, and infrastructure companies. Now, it may well be the turn of digital.During the tech bubble flower vendors to air conditioner manufacturers were valued for their software subsidiary rather than their main businesses. In the infra boom steel and cement makers were lapped up for the power plants they put up instead of the cash their main businesses generated.Look no further than Reliance Industries which is now valued at $200 billion mostly for its Jio Platforms business about which few investors have a ignoring its oil and gas business. The digital fever is so pervasive that even the State Bank of India Chairman is peddling his less than a square inch app Yono as worth $40 billion when his 25,000 branches and lakhs of staff are worth about half that.Investors are willing to pay any price, literally, to own a piece of India’s digital future. At the IPO price of Rs.166, Happiest Minds’ price-to-earnings was 31 times compared with listed peers TCS’ 26 times and Infosys’ 24.3 times, the offer document shows. Difference? It is `Born Digital, Born Agile.’ The Ashok Soota founded firm has no legacy to worry about after all. It’s a lean machine. It has more than doubled after listing.Without doubt digital firms deserve better valuations than conventional technology firms. Globant, a Luxembourg based company with a revenue of $659 million for last year is valued at $7 billion. EPAM with a revenue of $2.29 billion is trading with a market cap of $18 billion and UK’s Endava with a $350 million revenue is at $3.1 billion. Happiest Minds with a revenue of $101 million last year is at $760 million.While future earnings potential and the price-to-earnings ratio are key metrics investors look at, more often than not the `novel’ offerings are taken to stratosphere and then the inevitable gravity begins to play. Happiest may be among the early ones in a long list to whet the digital appetite of investors. Businesses would grow and earn profits, but investors get irrational.Just blame it on the brevity of financial memory. In the Indian context, previous episodes of exuberance that did not end pretty bring up names such as DLF, Reliance Power, Punj Lloyd, Future Capital Holdings, and BGR Energy.Soota, whose Mindtree IPO in 2007 was subscribed 102 times, may deliver yet another success with Happiest Minds, but the story may be no different when investors pile on to all and sundry digital offerings in coming months.The legendary J.K.Galbraith captures the never-ending euphoria and misery."Financial disaster is quickly forgotten. When the same or closely similar circumstance occur again, sometimes in only a few years, they are hailed by new, often youthful, and always supremely self-confident generation as a brilliantly innovative discovery in the financial and larger economic world. There can be a few fields of human endeavour in which history counts for so little as in the world of finance. Past experience, to the extent that is part of memory at all, is dismissed as primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present,’’ wrote Galbraith. | latest fever sweeping through the nation, other than Corona, appears to be digital. Happiest Minds Technologies more than doubled on Thursday after receiving bids 150 times the shares it offered in an IPO. despite international financial markets strewn with episodes of booms and busts, india’s own in a limited period since the liberalisation of 1991 are plenty. | Positive |
https://www.financialexpress.com/industry/technology/5g-will-give-a-major-fillip-to-edge-computing-says-seagate/1507481/ | Edge computing seems to be the new buzzword these days in tech circles. At a time when consumers and businesses are in an overdrive when it comes to the creation of data, edge computing enables connected devices to process data closer to where it is created—or the “edge.” According to BS Teh, senior vice-president, Global Sales and Sales Operation, Seagate, by 2025, almost 20% of data created will be real-time in nature —rather than being sent to the core of the network for processing. This means enterprises will build on their central cloud computing architecture and develop the ability to process—and securely store—more data at the edge. “In short, get ready for the rise of the edge,” he tells Sudhir Chowdhary in a recent interview. Excerpts:
How is the storage market evolving in the Asia Pacific region?
The storage evolution trends are similar to what we see worldwide, which firstly is evolving and there is growth also. Specifically, it is growing in the mobile cloud area and we see “edge” as a big driver of growth as well. We also see the emergence of adjacent markets, for example, video surveillance —one of the fastest growing markets for which is Asia Pacific. Within Asia Pacific region, India is one of the largest markets for video surveillance. India trends in general again are similar. The differences are that the PC market is still a vibrant market for hard disk drives (HDD) in India. In other countries, the PCs are moving to solid state drives (SSD). In India, the percentage of SSD penetration is lower than that in other parts of the world. Most PCs are still using HDD inside.
Also read | What is GSP status; how US withdrawal of zero duty import benefit hurts India
How has Seagate’s storage market share grown in India?
The growth in India is ahead of growth elsewhere for a couple of reasons. If you look at the last three years for the Indian economy, it has grown significantly. So, that is obviously one big driver. I spoke about video surveillance as an adjacent market to PC and on a worldwide basis, it is one of the fastest growing segments not just for Seagate but for the storage industry.
What is your perspective on the Indian market, given the government’s focus on Digital India, Smart Cities, etc?
All of these opportunities are big growth drivers for us. The question is how do we actually capture these opportunities. I will use the telcos example for this and would say that it is a similar trend that we see in the other market segments you talk about. The telcos in India are deploying a lot of cloud services, they are not buying building blocks or disk drives, they are buying solutions. So, we will sell our product to India indirectly through these OEMs.
As these customers become more technical and their knowledge of the data infrastructure grows, they will look for alternative solutions as to how they can deploy the hardware; therefore, how they buy from us will be different. They may start engaging with us directly as they may feel that they may not have to buy a complete solution but may just want to buy a disk drive. We have different kinds of business models starting to emerge as compared to before.
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How do you plan to target the enterprise market of India?
We definitely want to engage with these large enterprise customers. It is less about going after the banks and more about looking at the specific target markets and telcos being one of them. Of course, engaging with the e-commerce players and all of that is there. We can look at the best ways to really engage with the markets and it could be as simple as providing direction and sharing the technology so that we can guide them in the right way. But fundamentally, we want to engage with the enterprise customers directly to have the conversation.
Is there a specific business strategy to target SMBs?
For SMBs, we have solutions like NAS (networked attached storage) applications. We look at doing a lot of market engagement for NAS solutions and SMBs. Another big area is looking at storage server solutions and partnering with our distribution and system integration partners to look at how we can collaborate and launch these type of enterprise cross-solutions to the SMBs.
How will IoT impact businesses, especially with respect to their storage needs?
I think the impact will be immense because IoT is very generic. You got to zoom in on either specific zones or applications. We see India as a large consumer market, IoT will make the shopping experience a lot more efficient. So, this will help us understand user and consumer needs more effectively and ensure we are providing the right kind of solutions using the right kind of channels. | by 2025, almost 20% of data created will be real-time in nature. 'get ready for the rise of the edge,' says BS Teh, senior vice-president, Seagate. 'edge' is growing in mobile cloud area and there is growth as well. 'i think the growth in india is ahead of growth elsewhere,' says BS. | Positive |
https://economictimes.indiatimes.com/mf/analysis/pharma-health-insurance-gold-loan-companies-top-picks-of-fund-managers-in-april/articleshow/75730273.cms | They disrupt the reading flow
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The government is likely to ask the next Finance Commission to consider a higher weight for the human development index (HDI) and sustainable development goals (SDGs) while recommending the distribution of resources among states.
US electric carmaker Tesla is willing to invest up to $2 billion for setting up a local factory if the government approves a concessional duty of 15% on imported vehicles during its first two years of operations in India.
As more women take up senior leadership roles in India Inc, their visibility in boardroom battles is also rising. In a clear break from the past, women are playing key roles in several ongoing boardroom conflicts, or family disputes that may extend into the boardroom, reflecting the rise in the number of women in positions where they can have their say.
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Download The Economic Times News App to get Daily Market Updates & Live Business News. | a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. a new report reveals the top 10 best mutual funds to invest in india. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/west-coast-has-special-place-in-india-us-bilateral-ties-says-ambassador-sandhu/articleshow/77428721.cms | The West Coast of the US has a "special place" in the bilateral ties between India and America, the top Indian diplomat in the US has said as he urged the diaspora community from the region to play a key role towards achieving the goal of a self-reliant India.The West Coast or Pacific Coast spreads from Washington State and stretches down South along the Pacific and also includes Hawaii and Alaska.In his maiden virtual interaction with eminent members of the diaspora from the West Coast on Friday, India's Ambassador to the US Taranjit Singh Sandhu said the Indian-American community gives a different quality to Indo-US ties and adds value to this partnership."Your entrepreneurial spirit, excellence in high-tech and areas of advanced technology is contributing, not just to the competitiveness of the US, but also on a global level," he said."The West Coast has a special place in our relationship with the United States. The Indian-American community here has distinguished itself and contributed immensely to the economic growth in this region," Sandhu said.The US, with its advanced technology base, can be a key partner for programmes like Make in India Digital India and Start-up India , he said.Reiterating that the four million strong Indian diaspora is an important stakeholder in relationship with the US, Sandhu said as the India-US relationship has evolved into a global strategic partnership, he looks forward to the community, playing a more active role.He noted that the Indian diaspora members from the West Coast occupy important positions in various walks of life, including business, academia, research, medicine, IT, management, real estate and politics.The recent announcements by tech-giants from the West Coast, such as Google , Facebook, Sequoia Capital and Qualcomm to invest in India show their faith and confidence in the Indian economy, "that our fundamentals are strong, and that we would play a very major role, in global economic recovery", Sandhu said."Prime Minister Modi has given the call for 'Atma Nirbhar Bharat'. We want to build a self-reliant India, and one that is integrated, to the global economy. We want to seize opportunities, to become part of the global value chain," he said.Sandhu was joined by India's new Consul General in San Francisco T V Nagendra Prasad."Ambassador Taranjit Sandhu and Consul General TV Nagendra Prasad provided an informative update to community leaders about the COVID-19 situation in India, the Vande Bharat flights and other areas of interest to the Indian diaspora," said Indiaspora founder M R Rangaswami."Ambassador Sandhu gave strong and compelling remarks about the strength of India as a vibrant, inclusive, pluralistic and diverse democracy and society," said Mihir Meghani from the Hindu American Foundation. | top Indian diplomat in the US urges diaspora to play a key role in achieving goal of self-reliant India. the west coast has a "special place" in bilateral ties between india and the united states, he says. the diaspora members from the west coast occupy important positions in various walks of life. the west coast has a different quality to Indo-US ties, he says. | Positive |
https://economictimes.indiatimes.com/mf/analysis/advantages-and-disadvantages-of-index-funds/articleshow/75847158.cms | Passive investing is gaining currency in India. Many investors are now convinced that investing in an index fund or ETF is the best cost-effective and hassle-free option to make wealth in the long run. The performance of large cap index funds and ETFs in the last two years seem to have convinced many investors about the invincibility of the passive strategy in India.It is true that many actively-managed large cap schemes struggled in the last few years, whereas their passively-managed counterparts topped the return charts. However, mutual fund managers and advisors point out that the performance is because of the narrow rally we have witnessed in the stock market. However, many investment experts believe that active funds will struggle to beat their benchmark increasingly in the coming years.These advisors point out that several actively managed funds, especially in the multi cap, mid cap and small cap segments, continue to beat their benchmark by a wide margin. They believe that many funds would be able to generate alpha or make more returns than their benchmark in India at least for a decade. This got nothing to do with the supernatural ability of fund managers, but it is the nature of a developing market like India where there are several under-researched and relatively unknown stocks that are discovered every year, they say.As you can see, one thing is very clear: it is only a matter of time before passive funds would become the preferred vehicle for regular investors. Let see what are the advantages of passive investment strategy? In other words, what are the pluses of index funds? One, you don't have to worry about the performance of the fund manager in these schemes. All you are looking for is to do as good or bad as the index. As you know, an index fund invests in the same set of stocks in the same weightage they have in an index. This means the scheme would move up or down in tandem with the index.Sure, there could be a small difference. That is called the tracking error in investment parlance. So, you should always look for an index fund with the lowest tracking error.The second advantage of index funds is the expenses incurred by these funds. That is why passive investing is called low-cost investing. A low-cost index fund allows you to benefit from the stock market in the most efficient manner. Actively managed funds mostly have higher expenses because the fund manager may be trying to buy and sell stocks based on his or her outlook.Do they have any disadvantages? Well, you let go of an opportunity to earn extra returns every year. If the claims of fund managers about the ability to develop markets to offer alpha are right, then it means you would be losing some returns every year. Over a long period, this could be quite sizable. | passive investing is gaining currency in india. many investors are convinced that investing in an index fund or ETF is best cost-effective option. passive funds are more expensive than active funds and are more efficient. passive funds are more efficient and have lower expenses. a low-cost index fund allows you to benefit from the stock market in the most efficient manner. a passive fund is a good investment vehicle for those who are a beginner. | Positive |
https://www.moneycontrol.com/news/podcast/d-street-talk-podcast-rs-20-lakh-cr-stimulus-not-enough-to-push-nifty50-above-10000-jyoti-roy-5265131.html | The wait is over! The big stimulus package which most of the market participants were waiting for is finally here, but the Rs 20 lakh cr stimulus package might not be enough to push Nifty back above 10,000, says Jyoti Roy, Deputy Vice President and Equity Strategist, Angel Broking Ltd in a podcast ‘D-Street Talk’ with Moneycontrol.
The Government has announced additional stimulus measures of Rs 6 lakh cr on Wednesday on top of Rs 10 lakh cr. announced so far with more announcements which are likely over the next few days, he said.
Wednesday's package tried to address the liquidity issues for the MSMEs, NBFCs, and power distribution companies which is positive for banks and NBFCs.
He further added that though more announcements are expected from the FM over the next few days we believe that the total fiscal & monetary package of Rs 20 lakh cr. (~10% of GDP) may not be enough and more needs to be done.
“We don't think that these stimulus measures are unlikely to take Nifty above 10,000. We need to take into account what is happening in the global economy - the US economy turnaround or the Dow rallying significantly from the current level which may pull the Nifty above the 10,000 marks,” he said.
The market may not see a vertical kind of movement that we have seen in the past, it is more likely to be a slow grinding kind of movement.
Our investment strategy is more sector-specific. He advises investors to focus on sectors where there is revenue visibility like FMCG, pharma, telecom and to some extent IT as well.
On the other hand, banks are likely to remain under pressure for another 2-3 quarters. “It is going to be difficult for the market to breakout and sustain above the 10,000 mark. We think that we are still in that mild kind of bear market and markets will continue to grind lower,” says Roy.
(Tune in to the podcast for more)
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. | the government has announced additional stimulus measures of Rs 6 lakh cr on Wednesday on top of Rs 10 lakh cr. announced so far. more announcements are likely over the next few days, says jyoti roy, Deputy Vice President and Equity Strategist, Angel Broking Ltd. he advises investors to focus on sectors where there is revenue visibility like FMCG, pharma, telecom and to some extent IT. | Positive |
https://www.businesstoday.in/sectors/auto/bmw-launches-bs-6-compliant-x1-suv-in-india-check-out-price-warranty-package-features/story/397642.html | German luxury carmaker on Thursday launched an updated version of its entry level sport utility vehicle (SUV) BMW X1 at Rs 35.9 - 42.9 lakh in India.
The car is one of BMW's highest selling models in the country and is locally produced at its Chennai factory. BMW X1 is available in BS-VI diesel and petrol variants. The two petrol variants are priced at Rs 35.9 and Rs 38.7 lakh while the two diesel variants cost Rs 39.9 and Rs 42.9 lakh respectively.
The new BMW X1 is get's its power through a two-litre four-cylinder petrol engine that has a peak output of 192 hp and maximum torque of 280 Nm at 1,350 - 4,600 rpm. The SUV can sprint to 100 kmph from standstill in 7.7 seconds. The two-litre four cylinder diesel engine also produces an output of 190 hp and a maximum torque of 400 Nm at 1,750 - 2,500 rpm and sprints to 100 kmph in 7.9 seconds.
The petrol version has a rated fuel economy of 14.82 kmpl and CO2 emissions of 160 gm per km while the diesel version has a fuel efficiency of 19.62 kmpl and CO2 emissions of 135 gm per km.
Rudratej Singh, President and Chief Executive Officer, BMW Group India, said, "The BMW X1 has established and owned the dominant position in the premium compact sports activity vehicle (SAV) segment. This is also the trend world wide - it reflects the global need the X1 serves."
"The X1 fits in perfectly with the attitude and lifestyle of modern ambitious future leaders who are redefining success -personally and professionally. They don't hold back and live in the present, enjoying the thrill of success, celebrating each moment of their performance, here and now. They are fearless in playing the big game. The X1 is their ally in this thrilling journey of smashing status quo and setting new benchmarks. With the new 2020 BMW X1, we welcome them into the BMW world to experience the thrill of the ultimate driving machine which will add more thrill to their lives," Singh added.
Other features in the new BMW X1 include steptronic sport automatic transmission, auto start-stop, brake-energy regeneration, electronic power steering, 50:50 weight distribution and ECO PRO mode in Driving Experience Control. Safety features include 6-airbags, attentiveness assistance, dynamic stability control (DSC) including dynamic traction control (DTC), cornering brake control (CBC), electric parking brake with auto hold, side impact protection and electronic vehicle immobilizer and crash sensor.
The company is also offering 5 years/60,000 kilometres service and warranty package that includes the protective cover of both BMW Service and BMW Repair inclusive. Together, they take care of Condition Based Service (CBS), maintenance work and warranty. For customers booking the new BMW X1 in March, the package is available at a special price of Rs 15,000 per year for petrol variants and Rs 20,000 per year for diesel variants.
In 2019, BMW had registered a 13 per cent decline in sales at 9,641 units and was the second largest luxury carmaker in the country behind Mercedes Benz that had registered sales of 13,786 units. India's overall luxury car market had also declined by about 13 per cent at around 35,000 units.
Also Read: Shut offices, work from home, travel ban: India Inc takes coronavirus safety measures
Also Read: Coronavirus fallout: China-controlled Penicillin G sees over 50% price rise
Also Read: SBI to buy stake in YES Bank? It's govt order, claims report | the new BMW X1 is available in BS-VI diesel and petrol variants. the two petrol variants are priced at Rs 35.9 and Rs 38.7 lakh. the two diesel variants cost Rs 39.9 and Rs 42.9 lakh respectively. the car can sprint to 100 kmph from standstill in 7.7 seconds. the car is one of BMW's highest selling models in the country. | Positive |
https://www.moneycontrol.com/news/business/companies/moneycontrol-pro-weekender-running-out-of-excuses-5800791.html | Dear Readers,
The US markets chose to sell off on Thursday, ironically at a time when the US Composite Purchasing Managers Index (PMI) for August came in at a solid 54.6, after a steady 50.3 in July. The seasonally adjusted composite PMI is a snapshot of economic conditions in the private sector in both manufacturing and services. A reading above 50 signifies expansion from the previous month, while one below 50 denotes contraction.
The US composite PMI therefore indicates that a strong rebound is on the cards in the current quarter. Since it measures changes in month-on-month activity, the PMI is signalling that the return to growth in July has not only been sustained but has become stronger. With the benefit of hindsight, therefore, there does seem to have been some fundamental reasons for the bullishness in US equities, although the improvement will certainly not explain all of it.
The US is not the only economy to see expansion in its composite PMI. China, Russia, the UK, the Eurozone all saw expansion in economic activity in both August and July 2020. The growth momentum, however, slipped in the Eurozone in August, probably because of the strong euro. Expect the European central bank to try and weaken the Euro and a stronger USD could have implications for emerging markets. China’s private sector, of course, has been expanding since May 2020.
On the other hand, India’s composite PMI came in at 46 in August, up from a very weak 37.2 in July. While the pace of the decline has slowed and the manufacturing sector has started to expand in August, there’s no escaping the fact that August was the fifth consecutive month the Indian private sector has shrunk.
There are plenty of other negatives. Let’s not forget that India’s GDP shrank by 23.9 percent from a year ago in the June quarter, the worst among the major economies. Consumer price inflation is one of the highest in the world and the RBI has been hard at work trying to contain a rise in bond yields. Global food prices have snapped back above March levels. The head of Axis AMC told us that a recovery in India is likely to take the shape of a W. Our recovery tracker’s latest update finds high frequency indicators to be a mixed bag. To top it all, new covid-19 cases in India are now the highest in the world and deaths have increased to around a thousand a day. If we were to construct a misery index, taking the GDP contraction, high unemployment, new infections and the inflation rate into account, India is very likely to top the tables.
Recall also that the Indian government has been niggardly in offering fiscal support, compared to most other governments. That’s because it was already propping up the economy even before the pandemic hit us. In July, the latest month for which data are available, central government spending lost momentum.
What then is our excuse for the rally?
But then, as we have been writing ad nauseam, there are many other reasons why stock indices go up, including liquidity, hope, a vaccine and the fact that stock market investors belong to a class insulated from the general misery. And let’s not underestimate the steely determination of central banks to create asset price inflation. This week, we revisited this favourite topic from a fresh perspective.
How then should investors position themselves? Some say the pandemic could leave lasting scars, but we took a contrarian position, pointing out that the Roaring Twenties succeeded the Spanish Flu pandemic of 1918-19. For those willing to wait, good things will come unto you. What manner of good things? Well, we brought you some high-quality multibaggers in beaten down sectors and stocks that could rise from the ashes.
Some stocks, as in the FMCG sector, have run up hugely during the lockdown and have very high valuations. But with capex unlikely in the near future and cyclicals uncertain, there’s a case for remaining invested in FMCG---Jubilant Foodworks being a case in point. Trent is another stock we believe will benefit from pent-up consumer demand, while of course, Reliance Retail made the headlines this week by acquiring the retail and other assets of the Future Group.
We showcased two phosgene producers, both promising, but in one of them we advised taking some profits off the table. For this agrochemical company, we said investors should buy only on declines. And sticking to pharma and chemicals, we also recommended a Vitamin D API maker registering strong export growth.
Coming back to the US market sell-off, pundits point out that the Vix, or fear gauge, was rising in tandem with stocks, a very unusual occurrence and a sign that all was not well. But given the strong rally in tech stocks, booking some profits is entirely rational.
With the US elections round the corner, volatility is expected to remain high.
Cheers,
Manas Chakravarty | the US composite Purchasing Managers Index (PMI) for August came in at 54.6, after a steady 50.3 in July. a reading above 50 signifies expansion from the previous month, while one below 50 denotes contraction. the US is not the only economy to see expansion in its composite PMI. china, Russia, the UK, the eurozone all saw expansion in both August and July 2020. | Positive |
https://www.businesstoday.in/current/corporate/paytm-says-no-to-cashbacks-on-p2p-transactions-gives-incentives-to-offline-merchants/story/357605.html | Paytm is looking to shift its focus from cashback strategy for 'peer-to-peer Unified Payments Interface' (UPI) transactions to offline merchant payments at retail kirana stores in order to expand its reach and discourage people from using cash. The digital payments company has decided to push back from incentive led P2P UPI transactions and partner with 2 crore kirana stores in order to enable them to accept digital mode of transaction.
ac"Paytm will be investing money in offline merchant expansion instead of driving incentive led P2P transactions. Our offline merchants create high-frequency usage and an important use-case for Paytm consumers. By investing in real merchant payments even in the remotest part of our country, we will help expand the vision of Digital India to the grassroots," said Deepak Abbot, Sr. Vice President - Paytm.
Paytm is already in a leadership position in the tier 1, 2 and 3 markets and aims to go deeper to expand the digital payments eco-system in India. The company has decided to move away from the P2P UPI payments as it is usually done to gain extra money which is, in turn, detrimental to the cashless system. Also, on Paytm, the UPI users are already the ones who have been using a host of Paytm services for long and they do not require cash backs to make the payments.
In order to help the merchants further and give them better access to capital, Paytm is also planning to invest on lending and insurance, rather than on P2P payments.
Recently, Paytm claimed that it has largest number of offline merchants and digital services. It also said that it has 1.2 crore merchant partners accepting payments through Paytm QR, which accepts all digital payment instruments such as UPI, wallets, cards and net banking.
Edited By: Udit Verma
Also Read: Paytm Money eyes $1.2 billion funding, to be 3rd unicorn from Paytm family
Also Read: Paytm's new loyalty program will manage your Zomato Gold, Uber, Gaana subscriptions | Paytm is looking to shift its focus from cashback strategy for 'peer-to-peer' unified payments interface (UPI) transactions to offline merchant payments at kirana stores. the company has decided to push back from incentive led P2P transactions. it has partnered with 2 crore kirana stores in order to enable them to accept digital mode of transaction. | Positive |
https://www.moneycontrol.com/news/business/cg-corp-to-open-500-wai-wai-city-outlets-in-india-by-2020-2551581.html | maggi_noodles__62191078
Nepal's CG Corp Global, makers of the popular Wai Wai noodles, today said it plans to have 500 outlets of its quick service restaurant (QSR) Wai Wai City Noodle Bar in India by 2020-end.
The company at present has 30 outlets operational in the country.
"CG Corp Global is expecting a revenue of Rs 1,000 crore from Wai Wai City by the end of 2025," Wai Wai City managing director Varun Chaudhary told PTI.
"We are confident with the team we have, we will be able to really move this into the largest Asian noodle brand, which will go global," he added.
The firm will be investing Rs 250 crore in total for the expansion, and has already invested Rs 50 crore so far, according to Chaudhary.
The QSR chain, which is taking the franchisee route and has 27 master franchisees, will have outlets coming up at airports, railway stations, metro stations, among others.
Wai Wai is present in 35 countries and plans to take the QSR concept in some of these existing markets.
"We definitely are looking at the Middle East, the US and Europe. We have our plants coming up in Bangladesh, Egypt, Serbia. Our global expansion will really start taking once our India operations stabilises," said Chaudhary.
He added that the QSR business would complement its FMCG business, where Wai Wai noodles does a business of Rs 600 crore, and has a market share of 27 per cent in the estimated Rs 2,400 crore instant noodle market. | CG Corp Global plans to have 500 outlets of its quick service restaurant (QSR) Wai Wai City Noodle Bar in India by 2020-end. the company at present has 30 outlets operational in the country. the firm will be investing Rs 250 crore in total for the expansion. the chain is taking the franchisee route and has 27 master franchisees. | Positive |
https://www.financialexpress.com/lifestyle/health/coronavirus-pandemic-booming-mask-producers-in-china-printing-money/1911185/ | As the coronavirus pandemic that originated in a central Chinese city has gone global, thousands of factories in China have nimbly turned to a new and very profitable market — face masks for export.
At the height of China’s outbreak in early February, Guan Xunze’s company created a new mask factory in just eleven days. The factory, with five production lines in northeastern China, made the much-needed N95 face masks which were in huge demand as infection numbers surged.
As cases in the country have dwindled, the 34-year-old — who was previously in pharmaceuticals — is now profiting from new markets and exporting masks to Italy, where the death toll has overtaken that of China.
In the first two months of the year, a staggering 8,950 new manufacturers started producing masks in China, according to business data platform Tianyancha — racing to fill the huge gap in demand.
But after the virus epicentre of Hubei province was placed on lockdown and the initial frenzy began to die down in China, virus outbreaks emerged in new hotspots elsewhere in the world.
Globally more than 400,000 have been infected with the deadly coronavirus, and demand for protective equipment is still soaring as nations across the globe battle the outbreak. “A mask machine is a real cash printer,” said Shi Xinghui, sales manager of an N95 mask machine company in Dongguan city, southeastern Guangdong province.
“The profit of a mask now is at least several cents compared to less than one in the past. “Printing 60,000 or 70,000 masks a day is equivalent to printing money.” Qi Guangtu has put more than 50 million yuan (USD 7 million) into his factory producing mask-making machines in the southern industrial hub of Dongguan.
It has been in 24-hour continuous production since January 25 — two days after the dramatic lockdown of Wuhan, where the virus first emerged.
“Cost recovery is certainly not a problem,” he said, adding that 70 sets of equipment have been sold for more than 500,000 yuan (USD 71,000) each. He has more than 200 additional orders in hand, worth over 100 million yuan (14 million).
“The machines pay for themselves in 15 days, ” said Qi, saying the investment is worth it for his clients.
Manufacturer You Lixin had never set foot in a mask factory before. But as the market soared and he saw the opportunity, it took him just ten days from first deciding to enter the industry to delivering automated machines capable of producing masks.
“I slept two or three hours a day, so did my clients,” he said. You’s clients also slept in his plant, waiting desperately to collect their new machinery.
Some of them are garment factory owners in Wenzhou, eastern Zhejiang province, who had switched to producing face masks.
“They were facing orders they had insufficient capacity to deliver, and they couldn’t make the deliveries,” You said.
“The panic intensified as the crisis accelerated at that time.” The high levels of mask production has dramatically pushed up prices for raw materials.
According to Guan, the price of fabric has risen astronomically — from 10,000 yuan to 480,000 yuan per tonne.
Producer Liao Biao struggled to bring back the components of mask machine piece by piece from outside Hunan Province in late January, with the cross province border closed.
Finally, to pay an expert tester for the mask machines, Liao paid more than ten times the normal price. “Investment is blind now,” You said. But despite the rising costs of production, the profits still make the industry appealing.
According to China’s official figures, China’s daily mask production has passed 116 million now, with many meeting overseas demand.
Guan has already delivered one million masks to Italy, while Shi currently has more than 200 orders from South Korea and countries in the European Union. “Dongguan remains the world’s factory,” said Shi.
“The first peak of orders was during the middle of February. Now there is a second wave because of the pandemic,” said Shi.
Liao is also seeking to export his masks to Europe and Canada. “The demand for masks has been alleviated at home — now we can have some surplus to support other countries,” said Liao. “We are willing to help others.” And Guan is optimistic about the future of the industry beyond the outbreak.
“Most people will have the habit wearing a mask after this outbreak,” said Guan. “I’ll stay in the industry.” | thousands of factories in china have turned to a new market — face masks for export. at the height of the outbreak in early February, a new factory in northeastern china created a new mask factory in just eleven days. the factory, with five production lines in northeastern china, made the much-needed N95 face masks which were in huge demand as infection numbers surged. globally more than 400,000 have been infected with the deadly coronavirus. | Positive |
https://www.businesstoday.in/current/economy-politics/big-boost-for-msmes-how-india-inc-reacted-to-coronavirus-relief-package-economic-stimulus/story/403773.html | The industry bodies and leading businessmen have lauded the financial package and policy interventions announced by Finance Minister Nirmala Sitharaman on Wednesday. The Indian Chamber of Commerce stated that the turnover-based definition of MSMEs has addressed a long pending demand and extended the benefits to a large number of companies.
Sitharaman also announced Rs 3 lakh crore of collateral-free loans for small businesses. On which, the industry body said, "The Rs 3 lakh crore government-guaranteed loans to the liquidity-starved MSMEs would go a long way in stabilising and strengthening the sector".
Also read: FM's measures to bring liquidity, long term benefits to MSMEs, say experts
Gautam Adani, Adani Group chairman said that that the stimulus package could be a growth plank to push Make In India vision. Adani on Twitter wrote, "I truly believe that India's economic resilience thrives upon the tenacity of our smaller traders. FM Nirmala Sitharaman's stimulus for MSMEs can be a growth plank pushing the Make in India vision, creating jobs, and shaping a self-reliant India".
I truly believe that India's economic resilience thrives upon the tenacity of our smaller traders. FM #NirmalaSitharaman's stimulus for MSMEs can be a growth plank pushing the Make in India vision, creating jobs and shaping a self-reliant India. #AtmaNirbharBharatAbhiyan - Gautam Adani (@gautam_adani) May 13, 2020
Pawan Goenka, managing director of Mahindra and Mahindra Ltd wrote on Twitter, "Certainly a big boost for MSMEs. Should go a long way in strengthening MSMEs beyond COVID19. Public procurement, receivable clearance are big steps".
Certainly a big boost for MSMEs. Should go a long way in strengthening MSMEs beyond COVID19. Public procurement, receivable clearance are big steps. @MahindraRise - Pawan K Goenka (@GoenkaPk) May 13, 2020
Snapdeal CEO Kunal Bahl said that MSMEs were India's backbone and government's announcement would help them to get back on their feet. Bhal also said that "Additional collateral and guarantee free loans, equity funding options, better access to govt procurement, e-market linkage and higher thresholds are strong enablers".
MSMEs are India's backbone. Today's measures by FM @nsitharamanoffc will help them get back on their feet. Addl. collateral & guarantee free loans, equity funding options, better access to govt procurement, e-market linkage and higher thresholds are strong enablers. - Kunal Bahl (@1kunalbahl) May 13, 2020
Bahl also added that liquidity and credit guarantees for banks and NBFCs would remove hesitation in lending. "Friction-free implementation of these measures can slowly convert adversity to advantage".
Liquidity & credit guarantees for banks & NBFCs will help remove hesitation in lending. Friction-free implementation of these measures can slowly convert adversity to advantage. - Kunal Bahl (@1kunalbahl) May 13, 2020
Sajjan Jindal, Chairman and MD of JSW Group stated that "Sitharaman gave a strong thrust to MSMEs who are the backbone of our economy, through a combination of automatic collateral-free loans to the MSMEs as well as credit enhancements to banks and NBFCs who are key lenders to this sector".
This evening's announcement by @nsitharaman gave a strong thrust to MSMEs who are the backbone of our economy, through a combination of automatic collateral free loans to the MSMEs as well as credit enhancements to banks and NBFCs who are key lenders to this sector. (1/2) May 13, 2020
Jindal also added that the onus lied on banks and NBFCs to ensure that credit flows to the sector.
The onus now lies equally with the Banks and NBFCs to ensure that credit flows to the sector. Looking forward to see what ammunition the government has for us in this battle to revive our economy. @PMOIndia (2/2) - Sajjan Jindal (@sajjanjindal) May 13, 2020
The Finance Minister also announced the rates of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) have been cut by 25 per cent of the existing rates for the remaining part of the 2020-21 fiscal. The measure will release the liquidity of Rs 50,000, she added.
On which Goenka said that "TDS deferment is a big deal. Will put extra money in the hand of the consumers for the next 11 months. Should help to boost demand. A very smart move".
TDS deferment a big deal. Will put extra money in the hand of the consumers for the next 11 months. Should help to boost demand. A very smart move. @MahindraRise - Pawan K Goenka (@GoenkaPk) May 13, 2020
In a big relief to the domestic power sector, Sitharaman also announced liquidity injection of Rs 90,000 crore for the debt-ridden power distribution companies. The FM also ordered state governments and Union Territories to extend the timelines of RERA projects by six months.
Also read: Stimulus package 2.0: Power discoms get Rs 90,000 crore liquidity jumpstart
RPG Enterprises Chairman Harsh Goenka said that the FM has injected vaccines with unprecedented stimulus measures replacing corona with "Karo na".
From Lock Down to Lift Up - FM #NirmalaSitharaman injects vaccines with unprecedented set of stimulus measures replacing Corona with Karo na . The right blend of nationalistic pride is instilled through #AtmaNirbharBharatAbhiyan - Harsh Goenka (@hvgoenka) May 13, 2020
Also read: First tranche of Stimulus 2.0 worth Rs 5.94 lakh crore; govt's burden only Rs 56,500 crore | industry bodies and leading businessmen have lauded the financial package. the Indian Chamber of Commerce said the turnover-based definition of MSMEs has addressed a long pending demand. sitharaman also announced Rs 3 lakh crore of collateral-free loans for small businesses. experts say that the stimulus package could be a growth plank to push the Make in India vision. | Positive |
https://www.moneycontrol.com/news/business/moneycontrol-research/improvement-in-yields-and-pax-growth-helped-indigo-post-strong-numbers-in-q1-4230411.html | live bse live
nse live Volume Todays L/H More ×
Highlights
- Highest-ever quarterly profit due to significant improvement in passenger growth and yield
- Significant capacity addition and allocation to new slots are the growth drivers
- Focus on international route is another key growth driver
- Accumulate as valuations are reasonable --------------------------------------------------
Fading competitive intensity due to the departure of Jet Airways has led to meaningful improvement in yield within the industry and Interglobe Aviation (IndiGo), the leader in the space, has taken advantage of the same and reported the highest ever quarterly profit in Q1 FY20. Strong revenue growth coupled with higher operating profit helped company post strong profits.
We continue to have positive outlook on the business and believe that the changing industry dynamics would help the company grow and cope up with the volatility in oil prices as yields are higher. We advise investors to accumulate the stock for the long term.
Quarterly snapshot
Key positiveNet revenue from operations witnessed a significant growth of 44.7 percent on year-on-year (YoY) basis. The growth was driven by 30.2 percent YoY growth in revenue passenger kilometres (RPK) and improvement in yield, which grew 12.7 percent. Yield witnessed improvement due to the Jet Airways fiasco that reduced competition from the industry. The management highlighted that the fares are higher in 0-15 days window as well.
With significant improvement in yield and increase in RPK, the company posted a YoY growth of 145.9 percent in earnings before interest, tax, depreciation, amortisation and rental (EBITDAR) and EBITDAR margin witnessed a YoY expansion of 1,214 bps in Q1 FY19.
Load factor remained largely same at 88.9 percent in Q1 FY20 and the company witnessed significant capacity addition of 30.9 percent YoY.
Outlook
Yields have improved significantlyDeparture of Jet Airways has led to significant improvement in yields as is evident from IndiGo’s result. The management, however, cautioned that the fares have started coming down now as the industry is witnessing lot of supply addition. However, expectations are that yields will not fall to previous low levels.
Capacity addition/ new slotsIn Q1 FY20, the company added 18 aircraft to its fleet, taking its fleet count to 235. Capacity grew 30.9 percent (YoY) in Q1 FY19. The management sees its capacity growing by 30 percent (YoY) in FY20 and 28 percent (YoY) in Q2 FY20.
In light of significant growth expected in the Indian aviation industry, the company has also placed huge orders, the delivery of which will help IndiGo retain its leadership position in the Indian market. Most of these additions would be of the fuel-efficient A320neo aircraft.
Additionally, IndiGo is getting new slots in heavily constrained airports which have been left behind by Jet Airways (40-50 percent slots in Mumbai and 20-25 percent in Delhi), which is expected to be an important trigger for growth.
Foray into the international marketThe company continues to focus on expanding its footprint in the long-haul international market. It has got into code share agreement with Turkish Airline. It has also added one new international destination during the quarter. In fact, it plans to allocate half of new capacity towards international markets.
Concern regarding the promoter’s riftThere have been differences between the two largest shareholders, Rahul Bhatia (38.26 percent stake, including family) and Rakesh Gangwal (36.69 percent stake, including family). The allegations have become formal with one of the co-promoters writing to SEBI pressing charges with regard to related-party transactions, appointment of senior management, chairman and directors.
We believe that differences between promoters won’t last long and the same would be sorted as it is in the best interest of everyone. However, the overhang is expected to be there on the company as the battle has been going on for a year and the solution doesn’t seem to be in sight yet.
The management, during the call, highlighted that there are no differences between the promoters regarding the business strategy and planning and that won’t affect the business.
Valuation – at reasonable levelsWe believe, IndiGo has the right business model that is required to retain its leadership position in the Indian aviation sector. Investors need to carefully monitor the oil prices and passenger growth. We advise investors to accumulate it in staggered manner.
RisksThe biggest risks for the business are the significant rise in oil prices, slowdown in the passenger growth, increase in competitive intensity and depreciation of the rupee against the dollar. One or all of these factors impact the financials of the company.
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For more research articles, visit our Moneycontrol Research page. | highest-ever quarterly profit due to significant improvement in passenger growth and yield. significant capacity addition and allocation to new slots are the growth drivers. focus on international route is another key growth driver. focus on oil prices is another key growth driver. fares are higher in 0-15 days window as well. fares have started coming down now as industry is witnessing lot of supply addition. | Positive |
https://www.financialexpress.com/industry/japans-lixil-expects-india-among-top-3-global-markers-outside-japan-in-8-years/1582572/ |
Japanese multinational firm LIXIL expects India to be one of the top three global markets outside its home country for water technology business in next seven-eight years on the back of growth driven by pre-fabricated bathrooms, according to a top company official.
The water and housing products major, which was formed in 2011 through merger of five of Japan’s most successful building materials and housing companies, is entering pre-fabricated bathroom vertical in India to add to its primary water technology business.
Under this segment, the USD 16 billion firm offers total solutions for bathrooms and currently sells products under premium GROHE and mass market American Standard brands in India.
“I would say currently India is not a very big part of our overall business globally. We are a USD 16 billion group globally and India is a very small part of that. But, we expect for the water technology businesses, India becoming our third largest market globally after China and the US,” LIXIL Asia Pacific CEO Bijoy Mohan told PTI.
When asked about the timeline to meet such expectation, he said: “That might take us 7-8 years to get there”.
Right now, India is probably number 15 globally, he added.
Elaborating on where the growth will come from, Mohan said, “In terms of volume and revenue in business, I would expect our largest business would be the pre-fabricated bathrooms. That will be the single largest business. It will lead the way for sure, because the value or size of the home or the bathroom is much bigger”.
Under its pre-fabricated bathroom system, LIXIL is offering integrated bathroom systems through construction of the entire bathroom in a factory, flooring, tiling, walls, piping everything together and deliver it within 16 hours at the proposed site.
“This we believe will be huge for India because of the construction demands, the scale that is required, there is not enough skilled labour to be able to do all of this on site and the speed of construction and regulations like now make it essential to complete a project at a certain period of time,” Mohan said.
LIXIL has been doing this in Japan for the last 50 years, he added.
The company has invested Rs 400 crore at its Vijayawada factory, which has a capacity to produce 1.2 million pieces of ceramics and can be doubled up. It has also set up a windows fabrication unit at Manesar at an investment of Rs 20 crore.
When asked if LIXIL would make further investments in India to meet its growth targets, Mohan said it may invest another Rs 100 crore to double the capacity of ceramics business in another three years. However, it is not decided on the same for the windows fabrication unit. | the water and housing products major is entering pre-fabricated bathroom vertical in india to add to its primary water technology business. the USD 16 billion firm currently sells products under premium GROHE and mass market american standard brands in india. right now, India is probably number 15 globally, according to a top company official. the company has invested Rs 400 crore at its Vijayawada factory, which has a capacity to produce 1.2 million pieces of ceramics. | Positive |
https://www.businesstoday.in/markets/company-stock/gland-pharma-share-lists-premium-over-issue-price/story/422487.html | Gland Pharma share made a strong debut on BSE today rising over 13% against the issue price. Share of Gland Pharma opened at Rs 1,701 against the issue price of Rs 1,500, logging gain of 13.4% on BSE. The pharma firm stock rose further up to 21.26% at Rs 1819 against issue price.
Market cap of the firm rose to 29,358 crore.
Total 1.79 lakh shares changed hands amounting to turnover of Rs 33.50 crore on BSE.
Against the debut price of Rs 1701, the share rose 6.93% to Rs 1819.
The Hyderabad-based firm backed by Chinese firm Fosun Pharma launched its initial public offering (IPO) from November 9-11 (Monday-Wednesday).
The IPO worth Rs 6,500 crore had a price band of Rs 1,490-1,500 per share.
Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Pvt Ltd, Haitong Securities India Pvt Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd were the book running lead managers to the IPO.
Gland Pharma on November 8 raised Rs 1,944 crore from anchor investors at the price of Rs 1,500 per equity share.
Stocks in news: RIL, Gland Pharma, SBI, Alkem Labs, Bharti Infratel, Wipro, Infosys
The anchor investors include the Government of Singapore, Nomura, Goldman Sachs, Morgan Stanley, SBI Mutual Fund, Axis Mutual Fund, SBI Life Insurance Co., Fidelity, ICICI Prudential Mutual Fund, HSBC Global Investment Funds, Small Cap World Fund and The Scottish Oriental Smaller Companies Trust PLC among others.
Gland Pharma IPO opens: Check price band, lot size; other details
Share Market News Live: Sensex rises 150 points, Nifty at 12,815; HCL Tech, ONGC, Infosys top gainers | Gland Pharma shares rise over 13% against the issue price of Rs 1,500. the pharma firm stock rose further up to 21.26% at Rs 1819. the firm backed by Chinese firm Fosun Pharma launched its initial public offering. the IPO was worth Rs 6,500 crore. the firm raised Rs 1,944 crore from anchor investors at the price of Rs 1,500 per equity share. | Positive |
https://www.financialexpress.com/infrastructure/railways/sleek-new-hello-kitty-bullet-train-debuts-in-japan-this-week-all-you-want-to-know-about-shocking-pink/1221211/ | Resplendent in shocking pink, a sleek “Hello Kitty” bullet train, complete with special carriages festooned with images of the global icon from Japan, has been unveiled before it chugs into service this week. The special shinkansen or bullet train will run for the next three months between the western cities of Osaka and Fukuoka from Saturday, the West Japan Railway firm said, hoping that one of the country’s most famous exports will boost tourism.
Passengers will be in left in no doubt what train they are on, with Hello Kitty smiling down from the shades of every window and adorning every passenger seat cover. One car will feature a “life-sized Hello Kitty doll” — the character is “five apples” tall, according to creator Sanrio — so fans can take selfies, a West Japan Railway spokesman told AFP.
Another car will have no passenger seats but offer regional specialities, including a selection of goods and foods, in a bid to boost the local economy and tourism.
Hello Kitty, the mouthless character, has spawned a multi-billion-dollar industry since Sanrio introduced it in 1974. It adorns everything from pencil cases and pyjamas to double-decker buses and airliners. | the bullet train will run between the western cities of Osaka and Fukuoka. it will feature a “life-sized Hello Kitty doll” so fans can take selfies. another car will have no passenger seats but offer regional specialities. the character has spawned a multi-billion-dollar industry since. Sanrio introduced it in 1974. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/india-inc-pays-rs-36000-crore-as-dividend-before-tax-kicks-in/articleshow/74941691.cms | Mumbai: Private Indian companies paid Rs 36,000 crore as dividends between February 1 and March 31 to avoid extra tax following the change in dividend tax treatment.The payouts may have helped many promoters to boost cash flows or ensure cover for pledged shares through the unprecedented market mayhem. About 480 companies including PSUs have declared a total dividend of Rs 76,000 crore after the budget.Of this, Rs 40,000 crore was declared by the public sector companies whereas the remaining Rs 36,000 crore was by non-government public companies. The government received nearly Rs 25,000 crore by way of dividend, while promoters of non-PSU companies got Rs 20,000 crore.Various companies with high promoter holding announced interim dividends in the last two months as the new budget proposal, which makes dividend income taxable up to 43% in the hands of the recipient, takes effect from April 1.The rush to pay dividends to shareholders before the new budget proposal helped several promoters of smaller companies as well as some of the affluent investors to increase their stake or to give additional margin for their pledged shares, said market participants.“Although most promoters are already leveraged and unable to raise additional leverage given the current market conditions and lack of liquidity in the financial markets, interim dividends gave them some cash flows,” said Sanjiv Bhasin, director, IIFL. “A few have increased their stake while some managed to maintain their ownership by providing additional margins.”Since March 1, promoters of over a dozen companies have been forced to let go of their shares that were pledged as many of them struggled to raise money in time to top up the value of their collateral in the recent market crash.Lenders have invoked promoters’ shares in companies such as Future Retail, Future Consumer, Just Dial, Asian Hotels (North), Reliance Capital, Eveready Industries, Reliance Home Finance, and Mandhana Retail in the past one month. However, promoters of more than 50 companies managed to bring in fresh shares to make up for the decline in collateral.“The flurry of interim dividends has provided cash flows to promoters to restructure their shareholdings,” said Mehul Savla, partner, Ripplewave Equity Advisors.Since March 1, promoters of nearly 300 companies have increased their stake by buying from the open market through stock exchanges. | about 480 companies including PSUs have declared a total dividend of Rs 76,000 crore. Rs 40,000 crore was declared by the public sector companies. the remaining Rs 36,000 crore was by non-government public companies. the government received nearly Rs 25,000 crore by way of dividend. promoters of smaller companies and some of the affluent investors have increased their stake or gave additional margin for pledged shares. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/iwai-launches-outreach-programme-in-up-to-promote-ganga-waterway/articleshow/65059079.cms | Saab Bags India’s First 100% FDI in Defence Project India has cleared the first 100% foreign direct investment (FDI) in the defence sector, with permissions granted to Sweden’s Saab to set up a new facility that will manufacture rockets.
Steady Loan Demand, Fall in Provisions Lift SBI Profit 8% State Bank of India (SBI), the country’s largest lender by loans outstanding, met D-Street expectations to report an 8% increase in the second-quarter net profit on steady credit demand and lower provisions as the nation’s most-valued government entity wrote back some accounts where recovery was delayed. The lender expects robust loan growth, underpinned by broad-based economic expansion. | first 100% foreign direct investment in defence sector cleared. permission granted to Sweden's Saab to set up rocket manufacturing facility. 8% increase in second-quarter net profit on steady credit demand. lender expects robust loan growth, underpinned by broad-based economic expansion. sBI expects robust loan growth, underpinned by broad-based economic expansion. | Positive |
https://www.moneycontrol.com/news/business/markets/tough-times-do-not-last-forever-crisis-driven-weakness-an-opportunity-gaurav-dua-5482531.html | live bse live
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This is not the first time the equity markets have witnessed sharp correction and it would not be the last time. Crisis-driven weakness and volatility is an opportunity to invest in the equity market for handsome returns over the next few years. This time is no different, Gaurav Dua, SVP, Head - Capital Market Strategy & Investments, Sharekhan by BNP Paribas, said in an interview with Moneycontrol’s Kshitij Anand.
Edited excerpt:
Q) IMF global outlook is slightly worrying but is not something that is not known to markets. We saw some knee-jerk reaction in equities across the globe, and India was no exception amid rising cases of COVID-19. Do you think these factors would cap the upside for Indian markets?
A) Corona pandemic has serious consequences for Indian as well as the global economy. IMF and other reported institutions estimate contraction of 3-5 percent in the global economy in the year 2020.
However, the policy response by central bankers and government across the world has been pretty aggressive. A fiscal and monetary stimulus to tune of US $19-20 trillion has been announced globally.
In the US alone, the US Federal Reserve balance sheet has expanded by $6.2 trillion in 2020 (almost 30% of US economy). The gush of money and signs of flattening of the corona curve in many nations has supported equity markets.
With the recovery of over 30 percent in Indian equities, the valuations are not cheap anymore and further upside would be dependent on the pace of recovery as the lockdown unwinds and businesses stabilise.
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
Q) How would you describe the last six months of 2020 in one word? And why?
A) Opportunity! This is not the first time the equity markets have witnessed sharp correction and it would not be the last time. However, it has been seen that eventually the economy stabilises and the markets recover over a period of time.
The crisis-driven weakness and volatility are an opportunity to invest in the equity market for handsome returns over the next few years. This time is no different.
Q) Where do you see markets, earnings heading in the next six months? Your outlook for the markets.
A) Fundamentally, it is difficult to predict the market movement in the short term. Historically, we have seen that the markets have more than doubled over 18-24 months from the low levels. This has happened in 2000-2003 and again in 2008-2010.
Q) In the first six months of 2020 we saw plenty of buybacks as well as companies announcing delisting. What is the rationale behind it, and do you think this trend would extend in the next six months as well?
A) Tough times do not last forever. Thus, the sharp correction is seen as an opportunity by promoters and company management especially since they have a very long investment horizon. Moreover, buybacks are a good way of utilising free cash on the books and also rewarding for minority shareholders.
Q) Which sectors are likely to turn out to be leaders and laggards in the next six months?
A) As the lockdown unwinds and the economy stabilises, we see a lot of opportunity in the consumer discretionary companies which will see revival in demand and also share prices in certain consumer segments has been beaten down considerably.
Pandemic has a relatively lower impact on rural and Agri economy, consequently, we also see rural demand-driven stocks outperforming in the near term.
On the other hand, consumer staples (FMCG), capital goods and IT Services companies could underperform over the next six months.
Q) Many new investors joined the party on D-Street in the first six months to start their journey of becoming a millionaire if they remain invested for the long term. But, as we head into the next six months – which are the survival tips you would like to share with them to keep them afloat amid volatility?
A) Investors can stay invested in quality companies with a proven track record, healthy balance sheet, and reputed pedigree. However, one needs to be careful while investing in penny stocks and companies with stretched balance sheets.
It is wise to always maintain 10-12 percent cash on hand to take advantage of volatility.
Q) Gold hit a fresh record high in the week gone by. Do you think it could again outperform equities in 2020? What is your outlook on the yellow metal for the next six-12 month's perspective?
A) We have a positive view on gold for the past 7-8 months and see no reason to change it despite the recent rally. We recommend some exposure to gold for investors in their portfolio as it is a hedge against volatility in equities and also weakness in rupee.
With fiscal deficits set to surge for most countries including India and ample easy liquidity globally, we believe that gold prices will remain firm over the next couple of quarters.
Q) Key 3-5 stock recommendations (value picks) to investors for 1-year perspective?
A) Our Top Value Picks with 12-18 month investment horizon are: Bharti Airtel, ICICI Bank, Tata Consumer, Bajaj Finserv, and Hero MotoCorp.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | a fiscal and monetary stimulus of $19-20 trillion has been announced globally. the gush of money and signs of flattening of the corona curve has supported equity markets. a vaccine works by mimicking a natural infection. a vaccine works by building herd immunity to put an end to the pandemic. a vaccine works by mimicking a natural infection. | Positive |
https://economictimes.indiatimes.com/news/company/corporate-trends/gvk-group-cuts-salaries-up-to-30-pc-from-may-amid-coronavirus-pandemic/articleshow/76178031.cms | Samvat 2080 Opens on a Positive Note Samvat 2080 started on a steady note for investors with India’s stock benchmarks gaining over half a per cent in the special 60-minute Muhurat trading session on Sunday evening to mark the start of the traditional Hindu new year.
Insolvency Gets All Personal Now in Boost for Recoveries Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery, potentially multiplying banks’ realizations. | india's stock benchmarks gained over half a per cent in the special 60-minute Muhurat trading session on Sunday evening. the move marks the start of the traditional Hindu new year. bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery. a new ruling by the supreme court will open up a new window of recovery. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/chasing-millionaire-dreams-tech-real-estate-infra-and-now-digital/articleshow/78164747.cms |
Mumbai: Centuries of investing history shows that some fever or the other catches investors at a given period that has a set pattern – from the beginning to end – be it the Dutch tulip mania, the US railroads, the UK’s South Sea bubble, last century’s tech bubble or India’s own infrastructure mania.To aim for riches is a basic human trait and there is no better place than the stock market to achieve it quickly, or so the belief goes. It is more so when something fanciful catches the attention about which few are knowledgeable.The latest fever sweeping through the nation, other than Corona, appears to be digital. Happiest Minds Technologies more than doubled on Thursday after receiving bids 150 times the shares it offered in an IPO.Investor euphoria is backed by the `uniqueness’ of the company that is `well-positioned’ to do earn profits in the world of digital. While 3,913 companies are available for trading on the BSE, there are few pure play digital businesses to buy.While international financial markets are strewn with episodes of booms and busts, India’s own in a limited period since the liberalisation of 1991 are plenty.Since the early 1990s when an insurance company clerk grabbed the headlines with his Toyota Lexus, there have been many cycles. Between the rise of Harshad Mehta and now, the Indian stock market has witnessed booms and busts in shadow banks, technology firms , real estate, and infrastructure companies. Now, it may well be the turn of digital.During the tech bubble flower vendors to air conditioner manufacturers were valued for their software subsidiary rather than their main businesses. In the infra boom steel and cement makers were lapped up for the power plants they put up instead of the cash their main businesses generated.Look no further than Reliance Industries which is now valued at $200 billion mostly for its Jio Platforms business about which few investors have a ignoring its oil and gas business. The digital fever is so pervasive that even the State Bank of India Chairman is peddling his less than a square inch app Yono as worth $40 billion when his 25,000 branches and lakhs of staff are worth about half that.Investors are willing to pay any price, literally, to own a piece of India’s digital future. At the IPO price of Rs.166, Happiest Minds’ price-to-earnings was 31 times compared with listed peers TCS’ 26 times and Infosys’ 24.3 times, the offer document shows. Difference? It is `Born Digital, Born Agile.’ The Ashok Soota founded firm has no legacy to worry about after all. It’s a lean machine. It has more than doubled after listing.Without doubt digital firms deserve better valuations than conventional technology firms. Globant, a Luxembourg based company with a revenue of $659 million for last year is valued at $7 billion. EPAM with a revenue of $2.29 billion is trading with a market cap of $18 billion and UK’s Endava with a $350 million revenue is at $3.1 billion. Happiest Minds with a revenue of $101 million last year is at $760 million.While future earnings potential and the price-to-earnings ratio are key metrics investors look at, more often than not the `novel’ offerings are taken to stratosphere and then the inevitable gravity begins to play. Happiest may be among the early ones in a long list to whet the digital appetite of investors. Businesses would grow and earn profits, but investors get irrational.Just blame it on the brevity of financial memory. In the Indian context, previous episodes of exuberance that did not end pretty bring up names such as DLF, Reliance Power, Punj Lloyd, Future Capital Holdings, and BGR Energy.Soota, whose Mindtree IPO in 2007 was subscribed 102 times, may deliver yet another success with Happiest Minds, but the story may be no different when investors pile on to all and sundry digital offerings in coming months.The legendary J.K.Galbraith captures the never-ending euphoria and misery."Financial disaster is quickly forgotten. When the same or closely similar circumstance occur again, sometimes in only a few years, they are hailed by new, often youthful, and always supremely self-confident generation as a brilliantly innovative discovery in the financial and larger economic world. There can be a few fields of human endeavour in which history counts for so little as in the world of finance. Past experience, to the extent that is part of memory at all, is dismissed as primitive refuge of those who do not have the insight to appreciate the incredible wonders of the present,’’ wrote Galbraith. | latest fever sweeping through the nation, other than Corona, appears to be digital. Happiest Minds Technologies more than doubled on Thursday after receiving bids 150 times the shares it offered in an IPO. despite international financial markets strewn with episodes of booms and busts, india’s own in a limited period since the liberalisation of 1991 are plenty. | Positive |
https://www.moneycontrol.com/news/business/rbi-policy-mpc-cuts-repo-rate-by-25-bps-to-6-25-stance-changed-to-neutral-3492001.html | The Reserve Bank of India (RBI) on February 7 lowered the repo rate—its key lending rate—by 0.25 percentage points to 6.25 percent and changed its stance to "neutral" from "calibrated tightening", signalling higher chances of more cuts in the coming months if inflation persisted within tolerable limits.
The central bank also sounded bullish about the prospects in the real sector, only marginally reducing its 2019-20 GDP growth forecast to 7.4 percent from 7.5 percent earlier, amid sprouting investment revival signs.
The lower repo rate—the rate at which banks borrow from the RBI— has raised hopes of bringing down EMIs for the millions of home loan borrowers as well cut capital raising costs for corporates, with banks expected to pass on the reduced rates to its customers.
The six-member Monetary Policy Committee (MPC), headed by RBI governor Shaktikanta Das, noted that large part of the current investment recovery has been driven by government spending and it was necessary to broad base the revival with a private sector boost.
RBI will meet banks in the next fortnight to discuss a range of issues, including the extent to which lenders have passed on lower repo rates to its customers, Das told journalists after presenting the policy.
In December, it had introduced a new method for fixing floating loan charges—a move that will likely force banks to change home loan rates according to the way the RBI's repo rate or government bond yields move.
The RBI also announced a string of regulatory changes including raising the limit of collateral free bank loans for farmers to Rs 1.6 lakh from Rs 1 lakh currently, among others.
Banks have also been given greater operational freedom to offer interest rates to bulk deposits, raising the definition of “bulk deposits” to Rs 2 crore from Rs 1 crore currently.
"Investment activity is recovering but supported mainly by public spending on infrastructure. The need is to strengthen private investment activity and buttress private consumption," the MPC statement said.
The focus will now shift to growth given the stability in inflation levels, said Das, who was presenting the monetary policy review after taking charge as RBI Governor in December.
There are few worry lines, both in the industrial sector, as well as the rural economy.
"First, aggregate bank credit and overall financial flows to the commercial sector continue to be strong, but are yet to be broad-based. Secondly, in spite of soft crude oil prices and the lagged impact of the recent depreciation of the Indian rupee on net exports, slowing global demand could pose headwinds. In particular, trade tensions and associated uncertainties appear to be moderating global growth," Das said.
Rabi sowing so far (up to February 1, 2019) has been lower than in the previous year, but the overall shortfall of 4 percent across various crops is expected to catch up as the season comes to a close.
“The extended period of cold weather in this year’s winter is likely to boost wheat yields, which would partly offset the shortfall, if any, in area sown,” it said.
Headline inflation will likely persist within the RBI's tolerable level of 4 percent. The RBI projected that consumer price inflation, the primary price gauge that it tracks for interest rate decisions, will be around 3.2-3.4 percent during April-September 2019, reflecting the current low inflation levels and benign food price outlook.
India's retail inflation eased to an 18-month low of 2.19 percent in December, driven by cheaper food items.
Crude oil prices have also moderated sharply over the last six weeks, which could push down headline inflation rate even further. This could allow the RBI more elbow room to lower lending rates, eventually bringing down borrowing costs for individuals and corporate houses.
The RBI, however, said that "some uncertainties warrant careful monitoring", flagging seven key issues.
These include the volatile vegetable prices that could reverse upwards, uncertainty in crude oil prices despite the drop in recent months, heightening global trade tensions, the unusual spike in health and education prices, volatility in financial markets, monsoon rains in the coming summer months and its impact on food prices, and lastly, the union budget proposals' effect on the real sector.
"While inflation excluding food and rule remains elevated, the recent unusual pick-up in the prices of health and education could be a one-off phenomenon," the statement said.
Inflation expectations, a broad measure of what businesses, investors and households think about how prices will change in the coming months, have softened by 80 basis points for the next three months and the 130 points in the next 12 months, according to the RBI's latest survey in December 2018.
"Inflation in the prices of farm inputs and industrial raw materials remain elevated, despite some softening. Growth in rural wages moderated in October," RBI said.
The decision to change the monetary policy stance was unanimous. Among the MPC members, Ravindra H. Dholakia, Pami Dua, Michael Debabrata Patra and Das voted in favour of a repo rate cut. Chetan Ghate and Viral V Acharya voted to keep the policy rate unchanged. | the RBI lowered the repo rate—its key lending rate—by 0.25 percentage points to 6.25 percent. the central bank also sounded bullish about the prospects in the real sector. the lower rate has raised hopes of bringing down EMIs for millions of home loan borrowers. RBI will meet banks in the next fortnight to discuss a range of issues. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/twilight-at-the-end-of-a-dark-night-this-market-is-telling-you-to-buy/articleshow/74742994.cms | During most part of the week gone by, the domestic equity market was under a spell of intense fear. It seemed like economic activities will halt and deliver a crushing blow to the hopes of contrarians, with the few bulls that were doing bargain hunting eventually running away after seeing deeper cuts in the market.However, after such dark nights twilight emerges! The situation started showing some respite towards the end of the week, as selling pressure started to subside. Just like India, globally too, markets were seen finding their feet, especially in the US, where heavyweights like Apple, Alphabet and Facebook started witnessing buying interest at oversold levels.This was for the first time since the Covid19 crisis that buying was witnessed. Additionally, India VIX has also cooled down, indicating that the fear is receding and markets are expected to stabilise slowly. The announcement of a relief package of euro 1.7 trillion by the European Union , US’ package of $1 trillion along with Fed slashing interest rates next to zero are all a part of efforts to curtail the economic impact of the Covid-19 health crisis. India, too, shall follow soon. It is expected that Mr Market will take cognizance of these measures and the moment the health concerns subside, stability would return and markets will start rallying.Bank and NBFC stocks are a bridge to the real economy. The financial market is liquid while the real economy is illiquid. When the real economy takes a bow, financials also take a hit. At the time of demonetisation too, the market expected the economy to stand still, when names like Bajaj Finance, HDFC Bank started falling towards the last leg. Drawing inference from the DeMo times, these very same marquee names were being sold heavily during the week. This means that market may now be at the capitulation stage with strong leaders experiencing wild movements.Crude oil experienced a fall to near $20 a barrel level this week. The US has, thereafter, announced a stock-up in crude oil and plans to increase its strategic reserve levels to a maximum of 727 million barrels in the states of Louisiana and Texas. With this announcement alone, they will mop up some 77 million barrels in the coming weeks and months, thus raising crude oil demand by 20%. If the US can do such smart maneuvering to stabilise the commodity prices, it can be reasonably expected that equities too will soon find its feet.And if Wall Street stabilises, Indian markets will fire up in no time. After all it is the FPI selling, which has damaged investor confidence and dented the portfolio values.Nifty50 posted the biggest one-week loss after the selling climax of 2008 and is now trading well below the rising channel on the monthly charts drawn from the lows of 2008. Till now it has witnessed a drawdown of more than 30% from its all-time high made on January 23, 2020. Though the drawdown till now has been less than that of what occurred in 2008, which was more than 55% in Nifty, but the speed has been much faster comparatively and the damage has occurred on a larger structure.Nifty index has moved too far, too fast and become deep oversold. Hence, we might witness bounces followed by selling pressure at higher levels. Traders are advised to reduce short positions and buy on dips in the cash market rather than taking leveraged positions. Weekly lows should be maintained as stop losses for long positions.Normally, at the time of market capitulation, majority of the people sell in panic and smart people go for value bargains. This can be observed from the current increase in cash market volumes in the frontline names, where volumes have jumped 6-7 times in last two days – signaling capitulation. Also, value buying is emerging in sectors such as FMCG, consumer discretionary and other midcap value names. Next week, we may see further buying as a result of the very same capitulation. Hence, investors should accumulate quality names which are expected to tide through difficult times. They don’t need to have deep correction to be picked up; quality and efficiency are key for a business to ensure future growth. However, there is a global risk of debt imploding at the corporate level. If that happens, then we are heading for a different kind of a long-drawn deflationary bear market not seen in the century, in which case no amount of interventions or stimuli will be able to stop the deflationary spiral from unfolding. But this is unlikely as of now, and investors should lap up quality names in FMCG, pharma , consumer durables space. Stay safe.Nifty closed the week 12.15 per cent lower at 8,745. | the domestic equity market was under a spell of intense fear. but after such dark nights twilight emerges. markets were seen finding their feet, especially in the us. this was for the first time since the covid19 crisis that buying was witnessed. the announcement of a relief package of euro 1.7 trillion by the european union and us’ package of $1 trillion along with Fed slashing interest rates next to zero are all a part of efforts to curtail the economic impact of the covid-19 health | Positive |
https://economictimes.indiatimes.com/markets/expert-view/never-waste-a-good-crisis-this-was-the-right-time-for-psb-mergers-sandeep-parekh/articleshow/70911333.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Marketing Officer Programme Visit IIM Lucknow IIML Chief Operations Officer Programme Visit Indian School of Business ISB Chief Digital Officer Visit
We need the public sector to invest in infrastructure which is higher risk, longer gestation period fields in which regular private banks do not invest, says. Excerpts from an interview with ETNOW.It is a very good idea because one thing which Indian public sector banks lacked was scale and as they say never waste a good crisis and this is a very good time to do this. I have a little contrarian opinion on the 51% question that you posed and I believe that unlike most of the sectors where government should certainly exit 100%, banking is one area where half the banking should continue to be public sector. Right now it is two-thirds.The reason I say that is because the kind of calls which public sector can make. They maybe political calls so long as they are not crony calls. We need the public sector to invest in infrastructure which is higher risk, longer gestation period fields in which regular private banks do not invest.I believe the public sector banks play a very crucial role in the long term development of an economy. Certainly they should not be overwhelming like they were till a few years back but that problem has already been solved because if you do not capitalise them adequately anyway the asset size will shrink.The problem is going to solve itself over the next two, three years and from the economies of scale and efficiency of operation, it is good that we are having fewer larger banks in public sector.One of my former colleagues, Professor TTK Ram Mohan of IIM Ahmedabad, has done a study in which he shows that investments made by the public sector banks and all the NPAs put together is actually a very small fraction of benefits which we got as a country which he estimates is almost 1% per annum for the past 10 years. So the benefits have been actually almost 10 times more than all the NPAs put together.So certainly, the statistics seem to indicate that the benefits are there. They may not be very visible because we got lost in all the crony capitalism which also happened around the same time. But in the absence of crony capitalism, it is a very good time to have a public sector bank participate in segments which private banks do not always invest in. | a study shows public sector banks have been a very small fraction of benefits. the benefits have been almost 10 times more than all the NPAs put together. a banker says the public sector should be able to make more investment. a banker says it is a good time to have fewer larger banks in public sector. a banker says it is a good idea to invest in infrastructure. | Positive |
https://www.financialexpress.com/market/wall-st-week-ahead-donald-trump-xi-jinping-trade-armistice-clears-way-for-more-market-gains/1401529/ | One of the darkest clouds hanging over Wall Street somewhat dissipated on the weekend when China and the United States agreed to shelve any new tariffs and reset discussions, at least temporarily halting an increase in their tensions over trade. Investors said the agreement, lasting 90 days, between Chinese President Xi Jinping and U.S. President Donald Trump at the G20 summit spelled a reprieve for stocks and could pave the way for a positive bookend to a volatile trading year.
U.S. stock index futures jumped as trading for the week began late on Sunday, with benchmark S&P 500 e-mini futures up 1.55 percent. Treasury futures were soft, suggesting an appetite for risk-taking could extend last week’s gains in the stock market. The trade tension between Washington and Beijing, along with an uncertain outlook for U.S. rate hikes, have for months dogged prospects for equities. The U.S. pledge not to boost tariffs on $200 billion of Chinese goods could mark the most important deal in years between the world’s top two economies.
“It sets a pretty positive tone (and) stocks should have a decent rally into December,” said Nathan Thooft, Boston-based global head of asset allocation for Manulife Asset Management.
Thooft said he believed the Trump administration was using a threat to raise tariffs to 25 percent on Jan. 1, from 10 percent now as a negotiating tactic. “So when you start to see evidence that there is the ability to come to some type of agreement, that has to be viewed as a positive,” he said.
The stock market logged an official correction after a selloff in October and continued volatility in November that, just over a week ago, had left the benchmark S&P 500 stock index down 10 percent from its all-time high. Markets rebounded last week on comments perceived as dovish from Federal Reserve Chair Jerome Powell, though the S&P was up only 2.4 percent in 2018.
The latest trade standoff began in September when the United States imposed the 10-percent tariffs, prompting China to respond with its own. Ahead of the leaders’ dinner in Argentina, investors had been bracing for a range of outcomes including a worse-case end to talks and more tit-for-tat measures that would have continued to crimp economic and corporate profit growth.
Instead, the Americans and Chinese officially lauded the result. Beijing agreed to buy what the White House called a “very substantial” amount of agriculture, energy, industrial and other products. While the clock ticks on the 90-day tariff reprieve, the two sides will try to work out thorny issues including technology transfer, intellectual property and cyber theft.
“It’s not solved by any stretch of the imagination,” said Thooft. But risk assets and cyclical U.S. sectors like materials and industrials should benefit, he said on Sunday.
An initial jump late on Sunday of nearly 2 percent in Nasdaq 100 e-mini futures suggested that technology companies, many of which were hardest hit in the selloff, could rebound. Gary Shapiro, CEO of the Consumer Technology Association, said he was encouraged by the trade talks and warned that raising tariffs to 25 percent as the White House had threatened “would likely hurt consumers, put several American companies out of business and displace thousands of American workers.”
POWELL TESTIMONY
Energy prices could also rebound on Monday since cooling trade tensions could boost the world economy and spur demand. Oil prices had dropped from a four-year high of about $76 per barrel in early October to just above $50 on Friday. But U.S. crude oil was up 2.7 percent to $52.37 a barrel as of 6:07 p.m. EST (2307 GMT) on Sunday.
Aside from trade policy, Wall Street’s attention has also been trained on Fed policy. Powell was scheduled to testify on Wednesday to a congressional Joint Economic Committee. But the hearing is expected to be postponed to Thursday because major exchanges will be closed on Wednesday in honor of former U.S. President George H.W. Bush, who died on Friday at the age of 94.
Last week, Powell backed the Fed’s gradual tightening but said its policy rate was “just below” a range of estimates of the so-called neutral level that neither stimulates nor cools growth. In response, stocks shot up and largely recovered November’s earlier losses. In the wake of Powell’s speech, Nicholas Colas, co-founder of DataTrek Research, said “what happens in Buenos Aires will determine if stocks post a positive 2018.”
The specter of a global trade war has hovered over the market since March, when Trump announced tariffs on imported steel and aluminum. He also recently said the United States was studying auto tariffs, which could ripple through Europe and Japan, while a pact with Canada and Mexico left some investors heartened about potential progress with China.
Nancy Lazar, economist at research firm Cornerstone Macro, said in a notes that the 90-day tariff delay and China’s “incremental concessions” are good news. “But given the stern U.S. stance, we’re certainly not raising our outlook,” she said of a 2.8-percent growth estimate for the fourth quarter, still comfortably above potential. With U.S. corporate leaders increasingly voicing concerns over rising costs associated with tariffs, Wall Street appeared set on Monday to welcome any development that eases those pressures. | the deal between Xi and the u.s. at the summit spelled a reprieve for stocks. benchmark S&P 500 e-mini futures jumped 1.55 percent. the u.s. pledge not to boost tariffs on $200 billion of Chinese goods could mark the most important deal in years between the world's top two economies. | Positive |
https://economictimes.indiatimes.com/news/science/laws-being-put-in-place-to-ease-biz-environment-for-pvt-sector-in-space-segment-isro/articleshow/78128633.cms | Bengaluru: With the recent announcement of space sector reforms, the Indian Space Research Organisation on Tuesday said necessary legislations are being put in place to ease the business environment for private players.The space agency said it is also looking at paving the way for the insurance sector to render services in the space domain."We need to do some of the activities to ensure that there is no hardship, so a comprehensive space act is required, as well as the different policies should be in place, and they are in the pipeline, with the opening of the space sector," ISRO Chairman K Sivan said.Virtually addressing the International Space Conference, he said the existing space policies on SATCOM as well as the remote sensing data policies are being amended with "greater inclusivity and transparency.""Also, we are going to add new policies like launch vehicle policy, space exploration policy.We are going to cover the entire gamut of space activities through policies, also we are going to put in place the space act, which will ensure easy business for the private sector, that's our aim," he added.The Union Cabinet on June 24 approved participation of the private sector in the entire range of space activities, including planetary exploration missions.It had said, the newly-created Indian National Space Promotion and Authorisation Centre (IN-SPACe) will provide a level playing field for private companies to use Indian space infrastructure, by hand-holding industries in space activities through encouraging policies and a friendly regulatory environment.The 'New Space India Limited (NSIL), a PSU under the Department of Space, will endeavour to re-orient space activities from a 'supply driven' model to a "demand driven model, thereby ensuring optimum utilisation of our space assets," it had said.Sivan further said, "we should pave the way for the insurance sector to render services in the space domain, as this is absolutely essential for satellite and launch services."Department of Space is also working towards creating a formal system to support space sector startups and MSMEs in taking up innovation, research, as well as product development, he said.This programme is conceived as "Space Entrepreneurship & Enterprise Development (SEED)."The International Space Conference on the topic 'Ushering the New Era for Indian Space Sector,' is organised by the Confederation of Indian Industry (CII) in collaboration with ISRO and ANTRIX.Sivan pointed out that earlier there was no mechanism to share technical expertise or facilitate ISRO infrastructure usage by the private sector.There was no regulatory body for private sector space activities, but now a formal mechanism has been put in place by unlocking the space sector."We envisage a scenario, where private sector will be a co-traveller in ISRO's space mission, and private sector will also be empowered to carry out its own space missions.""..I'm sure that it will enable the growth of India Space Industry revenues and also in the export of products and services out of our country.It's a very welcome change," he said.Noting that the space industry, various stakeholders, entrepreneurs and investors are eagerly looking for new opportunities in space business, Sivan said till recently all space activities within India were carried out only by ISRO."We know that the global space economy is on a growth trajectory and our domestic requirements are also growing multifold," he said.To meet these requirements it is essential that the private sector must contribute a bigger share in the national space programme and also must have its own programme catering to both national and global requirements.This was easier said than done as the space activities require huge infrastructure investment as well as mandatory compliances to safety regulations, as the country is answerable for any safety lapses in the international forum, he added.The chairman pointed out that the risks are huge and the return on investment happens over a long period- the main reason being that the space system development-testing and operation are highly capital intensive and requires long time and large human resource development initiative.Sivan said very few private entities were actually involved in system development.However, recently many are eager to take up such activities, and in fact many startups in the space sector in India are very keen to develop space systems and have already started development activities,he added.NITI Ayog member V K Saraswat, Senior Director General Ministry of Transport, Czech Republic Vclav Kobera, CNES President Jean-Yves Le Gall and Australian Space Agency Deputy Head Anthony Murfett were among others present at the event.Saraswat said "by 2030, the new space economy will find ways we can live sustainably beyond our planet, creating new jobs, companies and opportunities." | the space agency is looking at paving the way for the insurance sector to render services in the space domain. the agency is also looking at paving the way for the insurance sector to render services in the space domain. the space act will ensure easy business for the private sector, ISRO chairman says. the space agency has announced a series of reforms to the space sector. | Positive |
https://www.moneycontrol.com/news/business/markets/three-ways-in-which-you-can-plan-your-future-by-investing-post-covid-19-5306251.html | Rahul_Jain1280
Rahul Jain
After spending several days in pessimism, fear, and uncertainty, many investors finally breathed easy. Having seen their gains evaporate given the ongoing coronavirus pandemic, the rally of domestic equity indices, before markets closed for an extended holiday in the last week of April, rejuvenated investor confidence.
Coming on the back of encouraging results from coronavirus drug trials in the US and hopes of further fiscal stimulus from the Government of India, this has improved the morale and mood of the investor community.
Global developments such as the expansion of manufacturing in China and the rise of Asian stocks to a fresh seven week-high last month has added to the bullish sentiments of many domestic investors.
Also, the Indian Government’s decision to allow the resumption of activities in orange and green zones, to restart economic activity, has given a new lease of life, making markets buoyant.
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
As we march into the days ahead, to what is now considered to be a new normal, we need to also re-evaluate our financial plans accordingly. What we need now is a calculated and cautious approach towards our investments.
Use common sense
Post the World Health Organization (WHO) declaration of as a pandemic, markets officially entered a bear phase.
While it has gained some lost ground in the last week of April, this upward movement is orchestrated on the back of global developments, expectations of a second fiscal push by the Indian government, and easing of the lockdown, in the near future.
The results are yet to be seen and if they are not on what we expect, markets will dip again, leading to lower price levels. Thus, to say that volatility still looms large, will not be an understatement. In such a scenario, a cautious approach coupled with common sense would be the antidote required to tide through future uncertainty.
Once the lockdown is completely lifted, markets will take note of ground reality, as after effects start to emerge. These events have the potential to continue the bearish phase of the markets and also possibly, trigger a second round of market fall. Thus, it’s important for investors, to not get carried away by the recent turn of events.
Don’t bet on stocks from a short-term perspective
The ongoing market turmoil has made certain stocks in specific sectors quite lucrative and enticing for investors. For example, pharma companies have emerged as a safe bet in these pressing times, with valuations at multi-year lows.
The Pharma Index has witnessed a significant jump and there’s a clear trend that shows an affinity for pharma stocks, among investors. I have always believed that you must invest in any stock with a long-term perspective and diversify your holdings.
Diversification avoids concentration of risk and shores up your portfolio. Thus, if one stock or asset class nosedives and fails to live up to its expectations, you are still safe.
Also, the performance of sectoral stocks is cyclical in nature and depends on the performance of that specific sector.
Note that while the pharma sector looks lucrative for now, the same may not be sustained in the long run. Therefore, adopt a long-term approach when banking on a particular stock.
Beef up your savings
The coronavirus pandemic has not only put brakes on economic activity but has also forced companies to cut costs through salary cuts and layoffs. An online survey published by a media house found 15 percent of the respondents set to lose their jobs, while 39 percent faced salary cuts.
Also, bagging a job that aligns with your requirements, may just be an elusive dream, in these tough times.
Therefore, analyse your position and the developments in your company and sector. In the face of pay cuts, trim your expenses and spend exclusively on needs.
Beef up your savings until normalcy restores. On the other hand, if you feel you might lose your job, take a note of your emergency corpus.
In case you don’t have one, start building one by parking money in liquid funds that invest in high-quality rated papers. Instead of chasing returns, focus on capital safety, and build a corpus equivalent to six to eight months of expenses.
The final word
The easing of the lockdown should not be construed as a return to absolute normalcy. 2020 and subsequent years, will be a period of recovery.
A meticulous approach, coupled with discipline and patience, can help you make prudent financial decisions. This will also allow you to be on a solid footing, once the market stabilises and economy kicks-off.
(The author is Head-Edelweiss Wealth Management)
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. | domestic equity indices rallied before markets closed for extended holiday. rally on back of encouraging results from coronavirus drug trials in the us. a vaccine works by mimicking a natural infection. it also helps quickly build herd immunity to put an end to the pandemic. a vaccine works by mimicking a natural infection. a vaccine not only induces immune response to protect people from future COVID-19 infection, but also helps build herd immunity. | Positive |
https://economictimes.indiatimes.com/blogs/et-editorials/the-time-to-boost-demand-is-now/ | There is a tide in the affairs of men, which, taken at the flood, leads on to fortune. For India’s economic growth, the tide could soon begin to ebb and, if the government fails to act, much of the economy will find itself all at sea, ‘bound in shallows and in miseries’. The government has done some very good things in response to the downturn induced by Covid-19, but these are what would be classified as necessary, but not sufficient. Now is the time to take to take that sufficient step, a big bang investment programme in infrastructure that would create demand for industry and services, put purchasing power in the hands of workers and employees, and pump life into the limp economy.
Capacity utilisation in industry was below 70% even before Covid, so it is futile to expect private investment to fire up the economy in the short run. The needed investment has to be made directly by the State or policy-induced by it. Shovel-ready projects exist in infrastructure, not in setting up new ventures. Take over flailing, stagnant real estate projects and, accepting the promoters as minority partners, complete them.
Complete the dozen townships under the Delhi-Mumbai Infrastructure Corridor. Where does the government have the money to invest on a large scale? It should borrow: from the public trying to take shelter from falling fixed deposit rates and flaky mutual fund performance in, of all places, direct entry into the stock market; and from the central bank. Monetise the deficit, ignoring rating agencies and their wagging fingers: growth will justify the means.
The point has been made that borrowing big to invest big and boost growth will set off a virtuous cycle of steadily lower debt-to-GDP ratios over the years, whereas timid borrowing now to finance some half-hearted investment would result in feeble growth and a rising trajectory of debt/GDP. If demand fails to pick up, companies will be forced into liquidation, never mind bank moratoria and all the other help the government has arranged and guaranteed. The time to act is now and the clock is ticking away.
Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Economic Times.
END OF ARTICLE | government has done some good things in response to the downturn induced by Covid-19. but these are what would be classified as necessary, but not sufficient. now is the time to take to take that sufficient step. a big bang investment programme in infrastructure would create demand for industry and services. it would put purchasing power in the hands of workers and employees. | Positive |
http://www.financialexpress.com/jobs/this-american-company-to-create-5000-jobs-in-andhra-pradesh-in-two-years/1115165/ | New Jersey-based Conduent Incorporated on Thursday announced to expand its presence in India by opening a new location in Visakhapatnam that will help create 5,000 jobs in the city in the next two years. A global leader in digital interactions with operations in 35 countries, the Visakhapatnam site will be the company’s ninth location in the country. “The entry of global businesses like Conduent to the city is a sign of the city’s growing stature as a business hub. It is yet another example of how investing in a highly-skilled, educated workforce boosts the local economy, creates jobs for the youth and strengthens the State,” said Andhra Pradesh Chief Minister N. Chandrababu Naidu at an event here.
The new site will become a key business location, helping Conduent India deliver innovation globally, in technology, transportation, healthcare, public safety, human resources, process automation and operational excellence. Conduent India employs nearly 12,000 people across nine locations in the country.
“India is a strategic growth region for Conduent. As a digital interactions business that serves Fortune 500 companies and government entities around the world, being a part of this dynamic geography is the right move for our clients and our people,” said Dave Amoriell, President, Conduent Inc.
The launch came less than six months after the company announced a three-year timeline for setting up a development centre in Visakhapatnam’s fintech valley. “Visakhapatnam provides access to a new professional labour market focused on technology, innovation and research,” Amoriell added. Conduent is the world’s largest provider of diversified business process services with leading capabilities in transaction processing, automation and analytics. | the new site will be the company’s ninth location in the country. the company employs nearly 12,000 people across nine locations in the country. the launch comes less than six months after the company announced a three-year timeline for setting up a development centre in Visakhapatnam’s fintech valley. the company is the world’s largest provider of diversified business process services with leading capabilities in transaction processing, automation and analytics. | Positive |
https://www.moneycontrol.com/news/business/markets/chris-wood-weak-growth-npa-cycle-big-risks-for-india-extremely-bullish-on-gold-5556671.html | "We are extremely bullish on gold and gold mining stocks. If gold takes out 2011 high near $1,900 per troy ounce, it will be blue skies," said Christopher Wood, the Global Head of Equity Strategy at Jefferies in an interview with CNBC-TV18.
It is just a matter of time before gold makes a new high, while silver will rally with a lag, he added.
The yellow metal hit a fresh 2011 high of $1,830 an ounce last week, but overall it has been hovering around $1,800 an ounce since the start of July amid hope that COVID-19 may delay the global economic recovery and the liquidity flow from global central banks may continue to boost their economies.
Chris Wood believes the lockdown hurt India more than the virus itself, though it was sensible to impose local lockdowns in certain places. "Allowing the economy to reopen is most important now," he said.
India continued its lockdown in all containment zones till July 15 to control the spread of the virus and a majority of containment zones are in key cities like Mumbai, Delhi, Bangalore, Pune etc, but the good thing is rural areas remained largely unaffected.
Gold & Silver Rates Today Gold Rate in Mumbai Today 10g of 24K gold in Mumbai ₹ 59,250 59,250
10g of 22K gold in Mumbai ₹56,430 56,430 View more Silver Rate in Mumbai Today 10g silver in Mumbai ₹ 760 760
1kg silver in Mumbai ₹76,000 76,000 View more Show
"IT & pharma are the central sectors, we don't expect them to be hit, but weak growth and an NPA cycle are big risks for India," Chris Wood said, adding there is going to be a cyclical recovery and autos will recover with it.
He believes housing & construction are the current exciting equity stories, but the lockdown has hurt revival of the property market. "Property market has been in a 9-year back market."
Globally, the re-opening/lockdown easing activates lifted the mood of equity markets causing a rally of over 30-40 percent from March lows.
That reopening narrative will keep equities in a positive trend, Chris Wood said.
"For me, the biggest risk for equities is that monetary easing may need to be called back, and Central banks' actions are increasingly toward easing," said Wood who fundamentally prefers emerging markets (EMs), but he feels EMs would take their cues from the US.
He is overweight on China for the next 10 years. "Chinese companies listed in the US are relisting in Hong Kong."
From the second half of June, the United States saw a sudden spike in COVID-19 infections and that has been rising with a daily count around 60,000.
"COVID-19 cases are rising in the US, but not the death rate. The surge in COVID death rate would hit the market very hard," Wood said.
My base case is that COVID-19 is in the process of burning itself out, he added.
The US market has been in a northward trajectory on the back of further progress in the vaccine, with Dow Jones rallying 44 percent from its March lows.
"I think the vaccine will create a lot of short-term volatility. Vaccine story is pure hype, we don’t think we need a vaccine," Chris Wood said.
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. | gold hit a fresh 2011 high of $1,830 an ounce last week. overall it has been hovering around $1,800 an ounce since the start of July. "we are extremely bullish on gold and gold mining stocks," says Christopher Wood. he believes the lockdown hurt India more than the virus itself. "allowing the economy to reopen is most important now," he says. | Positive |
https://www.moneycontrol.com/news/india/adoption-of-tech-digital-economy-would-play-key-role-in-transforming-business-enterprises-piyush-goyal-5468361.html | Adoption of technology and the digital economy would play a vital role in transforming business enterprises in the future and achieving the target of $5 trillion economy, Commerce and Industry Minister Piyush Goyal said on Saturday.
He said this while addressing the 49th governing council meeting of National Productivity Council (NPC), an autonomous body under the Department for Promotion of Industry & Internal Trade (DPIIT).
He also stressed the role of productivity in the transformation of any organisation.
The minister also suggested NPC to work closely with all the stakeholders and emphasised on adopting the best practices from around the world.
Some of the suggestions made in the meeting include the formulation of specific action plans by NPC especially in agriculture and logistics sectors, identification of champion sectors which has the potential to drive the economy, adoption of technology to increase productivity and delivering cost-effective solutions for the marginalised sector.
Interlinking of academia and industry for the creation of a highly skilled labour force, financing of specific products to support Micro, Small,and Medium Enterprises (MSMEs) and increase their productivity, and national audit on security impact. | he said technology and the digital economy would play a vital role in transforming business enterprises. he stressed the role of productivity in the transformation of any organisation. he suggested NPC work closely with all the stakeholders. some of the suggestions made include the formulation of specific action plans.. plans especially in agriculture and logistics sectors.. identification of champion sectors which has the potential to drive the economy. | Positive |
https://www.businesstoday.in/markets/company-stock/britannia-industries-share-price-rises-q1-net-profit/story/410407.html | Britannia Industries share price was trading higher today after the FMCG firm announced net profit rose 117 per cent in the April-June quarter. Share price of Britannia Industries opened 2.38% higher at Rs 3,874 against previous close of Rs 3,784 today. The share gained 5.31% to Rs 3,985, a fresh all-time high on BSE.
The large cap stock has gained 5.01% in last 2 days. Britannia Industries share trades higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 28.27% since the beginning of this year and risen 41.43% during the last one year. Total 0.27 lakh shares changed hands amounting to turnover of Rs 10.41 crore on BSE.
The share hit its all-time high on July 17, 2020 ahead of its Q1 earnings. On March 23 this year, the share fell to Rs 2,100 on BSE. Net profit in Q1 stood at Rs 546 crore against Rs 248.64 crore profit in corresponding quarter of last year. Revenue rose 26 per cent to Rs 3,384 crore.
Consolidated EBITDA rose to Rs 717.4 crore in Q1 compared to Rs 395 crore in the year-ago period. "The quarter posed an uphill task for the economy in wake of COVID-19 and caused significant disruptions due to lockdowns imposed to curtail its spread. Factories, depots, transport and vendors across the supply chain were impacted. Our top priority was to ensure the safety of our employees & the eco-system we work with for which we laid out clear & stringent standard operating procedures and implemented them meticulously," said Varun Berry, Managing Director of Britannia. | the share price of Britannia Industries opened 2.38% higher at Rs 3,874. the share gained 5.31% to Rs 3,985, a fresh all-time high on BSE. the share hit its all-time high on July 17, 2020 ahead of its Q1 earnings. the share fell to Rs 2,100 on march 23 this year. a total of 0.27 lakh shares changed hands amounting to turnover of Rs 10.41 crore on BSE. | Positive |
https://economictimes.indiatimes.com/markets/ipos/fpos/indostar-capital-finance-sets-ipo-price-band-issue-opens-on-may-9/articleshow/64003276.cms | Non-banking finance company IndoStar Capital Finance on Wednesday set the price band for forthcoming initial public offering at Rs 570 to Rs 572 per share. The Rs 1,844-crore issue will hit Dalal Street on May 9 and end on May 11.The issue of Everstone Capital-backed NBFC will comprise a fresh issue aggregating up to Rs 700 crore and an offer for sale (OFS) of up to 2,00,00,000 equity shares. At the upper limit of the price band, the OFS amounts to Rs 1,144 crore. The anchor investor allocation will take place on May 8.The company intends to primarily utilise the net proceeds of the fresh issue for augmenting its capital base to meet future capital requirements.Promoters intends to sell up to 18,508,407 equity shares, while other shareholders in the NBFC's will offer up to 1,491,593 equity shares in the OFS.Current shareholders include Everstone Capital, Beacon India Fund, ACPI Investment Managers and CIDB Capital.The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in January and received "observations" from the regulator on April 3, as per the latest update with the markets watchdog. JM Financial , Kotak Mahindra Capital Company, Morgan Stanley India Company, Motilal Oswal Investment Advisors and Nomura Financial Advisory and Securities (India) Pvt Ltd will manage the company's public issue.IndoStar Capital Finance offers structured term financing solutions for corporates, and loans to small and medium enterprise borrowers in India.It has recently expanded its portfolio to offer vehicle finance and housing finance products.The housing finance business is operated through company’s wholly-owned subsidiary IndoStar Home Finance, which commenced operations in September 2017. | the issue of the non-banking finance company will hit Dalal Street on may 9 and end on may 11. the company intends to primarily utilise the net proceeds of the fresh issue for augmenting its capital base to meet future capital requirements. the anchor investor allocation will take place on may 8. the company had filed IPO papers with Securities and Exchange Board of India (Sebi) in January and received "observations" from the regulator on April 3. | Positive |
https://economictimes.indiatimes.com/markets/commodities/news/gold-rises-on-coronavirus-worries-firm-dollar-limits-gains/articleshow/75044500.cms | Creditors have withdrawn 26,518 insolvency cases involving defaults of as much as ₹9.33 lakh crore before their applications were admitted by the adjudicating authority since the Insolvency and Bankruptcy Code (IBC) came into force.
IndiGo may introduce a premium class of seats along with hot food and a loyalty programme by the end of 2024, as India’s largest airline looks to court more business flyers and rival Air India on international routes, said people with knowledge of the matter.
The initial public offering (IPO) market is in an unprecedented bull wave. Three of the four IPOs — Tata Technologies, Flair Writing Industries, and Gandhar Oil Refinery — which opened on Wednesday were fully subscribed within hours of opening.
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Top Trending Stocks: SBI Share Price | creditors have withdrawn 26,518 insolvency cases involving defaults of as much as 9.33 lakh crore. IndiGo may introduce a premium class of seats along with hot food and a loyalty programme by the end of 2024. the initial public offering (IPO) market is in an unprecedented bull wave. three of the four IPOs — Tata Technologies, Flair Writing Industries, and Gandhar Oil Refinery — which opened on Wednesday were fully subscribed within hours of opening | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/nikkei-edges-up-to-new-27-year-high-as-weaker-yen-fans-earnings-hopes/articleshow/66039531.cms | TOKYO: Japan's Nikkei edged up to a fresh 27-year high on Tuesday, building on recent strength thanks to upbeat earnings hopes, while Ono Pharmaceutical surged on news that a Nobel Prize was awarded to researchers for a cancer-fighting method used in its drug Opdivo.The Nikkei share average ended 0.1 per cent higher at 24,270.62, hovering at levels not seen since November 1991.The gains in the benchmark have been underpinned by the prospect of stronger corporate earnings on the back of a weaker yen. The benchmark index has comfortably stayed above the 24,000-line since last Friday.The Nikkei rallied 5.5 per cent in September, and its sharp gains in the short-period of time make the market prone to profit-taking, but the underlining mood remains positive, traders said."Investors take heart from the global economy's strength and prospects for brighter earnings forecasts as they start reporting earnings later this month," said Takuya Takahashi, a strategist at Daiwa Securities.While many companies based their dollar-yen assumptions at around 105-107 this fiscal year, the current levels are boosting hopes that manufacturers, which export their goods overseas, will raise their annual earnings forecasts, he said.The dollar surged to as high as 114.06 yen in the previous session, its strongest since November last year, before trading flat at 113.77 yen on Tuesday.Exporters got a boost, with Toyota Motor Corp rising 1.6 per cent, Honda Motor Co <7267.T. adding 1.5 per cent, while Panasonic Corp soaring 2.7 per cent.Shares of Ono Pharmaceutical Co jumped as much as 6.9 per cent to hit 3,430 yen, the highest level since August 2016, before ending up 3.1 per cent on news that a Nobel Prize was awarded to researchers for a cancer-fighting method used in Opdivo, a drug it co-developed with Bristol-Myers Squibb Co .On the weak side, discount clothing chain Shimamura Co tumbled 8.2 per cent after the company revised lower its earnings forecast for the year ending February 2019. It now expects a net profit of 27.3 billion yen, down from previously forecast 35 billion yen.The broader Topix was up 0.3 per cent at 1,824.03. | the benchmark index has comfortably stayed above the 24,000-line since last Friday. the dollar surged to 114.06 yen in the previous session, its strongest since last year. shares of ono pharmaceutical surged on news that a Nobel prize was awarded to researchers. discount clothing chain Shimamura Co tumbled 8.2 per cent after it revised lower its earnings forecast. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/funds-hope-indias-mom-and-pop-investors-keep-the-faith-in-2019/articleshow/67188282.cms | Bloomberg
India’s $2 trillion stock market has been rattled in recent months by everything from high oil prices and tariff threats to a slumping rupee and a sell-off in non-bank lenders. The one thing that’s kept the gloom from worsening: robust flows from mom-and-pop investors.That backstop is seen extending into 2019 after the bull market over the past five years helped ingrain a buy-the-dip mentality among locals. Consider this: equity funds bought a record 1.18 trillion rupees ($17 billion) of shares this year, negating sales of $4.5 billion by foreigners.“In previous market corrections, investors would resort to panic selling , but this time they are using it as an opportunity to buy on dips,” said Kaustubh Belapurkar, director manager - research at Morningstar Investment Adviser India Pvt. “This is a trend that will continue, with investors continuing to stay invested despite volatile markets.”India’s equity culture got a leg-up after Prime Minister Narendra Modi was elected in 2014, as investors embraced mutual funds amid poor returns from gold and property. Stock plans account for 42 percent of the 24-trillion rupee industry assets, double the level four years ago. There’s room for more: equities form about a fifth of savers’ wealth in India, versus 31 percent globally, according to Karvy Private Wealth.“Investors have continued to invest systematically till this point and we hope it continues just like it did through 401(K) in the U.S.,” said Sankaran Naren, who oversees 3.1 trillion rupees at ICICI Prudential Asset Management Co., India’s biggest fund. “Almost 90 percent of our equity money is from retail.”Equity funds take in 80 billion rupees a month from savers who put in sums regularly, aiming to smooth out swings through averaging. The contributions have risen from about 12 billion rupees in 2014, and have buffered the market against global shocks, according to the Association of Mutual Funds in India.While money managers are hoping the flows persists, their stickiness will be tested in the months ahead as global markets brace for more volatility from the ongoing trade tensions and political uncertainty grips local investors with general elections to be held by May.“Increased awareness did bring more investors to mutual funds this year, but the test of their maturity will be in them staying for longer and adding new money, especially in an election year,” said Vidya Bala, head of mutual fund research at FundsIndia.Retail accounts in mutual funds reached a record 80 million at the end of October, with three-quarters of them in stock plans, industry data show. Individual investors’ share of total assets rose to 54 percent in November. Influx aided by policy changes, including the currency ban in 2016, which hurt returns from property and gold, and an ongoing awareness campaign by the industry.Flows to financial assets grew 17 percent in the year ended March, versus 9 percent in physical assets, according to Karvy Private Wealth.Allocation to direct equity rose 30 percent, and mutual funds by 35 percent in the period. In comparison, bank deposits posted a single-digit growth rate. Financial assets are likely to grow at a compounded annual growth rate of 17 percent over the next five years, faster than the 9.3 percent pace for hard assets: Karvy.India’s benchmark S&P BSE Sensex gauge has risen about 7 percent this year in local-currency terms. That’s as the MSCI Emerging Markets Index has tumbled 17 percent. The Sensex rose to a record in August only to fall to a six-month low in October as a rare debt default sparked a selloff in non-bank lenders. | equity funds bought a record 1.18 trillion rupees ($17 billion) of shares this year. this negated sales of $4.5 billion by foreigners. india's equity culture got a leg-up after prime minister Narendra Modi was elected in 2014. stock plans account for 42 percent of the 24-trillion rupee industry assets. equities form about a fifth of savers’ wealth in india, versus 31 percent globally. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/stocks-in-focus-on-may-17-2018/articleshow/64199225.cms | NEW DELHI: Domestic shares are likely to open on a flat note on Thursday, tracking Nifty on Singapore Stock Exchange (SGX) and global markets. At 08:00 am, the Nifty futures on SGX were trading 4.50 points or 0.04 per cent higher at 10,768.50.Steel major Tata Steel on Wednesday posted a profit of Rs 10,187.23 crore for the quarter ended March 31, 2018 against a consolidated loss of Rs 725.14 crore in the corresponding quarter last year. ETNow poll had predicted a net profit of Rs 2,323 crore. The company received one-time exceptional gain of Rs 11,376.14 crore in March quarter. The exceptional gain includes a non-cash gain of Rs 14,077 crore on account of restructuring of UK pension scheme.Skills and talent development company NIIT on Wednesday said its consolidated net profit declined by about 21 per cent to Rs 19.7 crore for the fourth quarter ended March 2018. The net profit is lower compared to Rs 25 crore in the year-ago period as there was positive impact of a 'one-time component in associate profit' in that quarter, the company said. Its revenue, however, increased by 6 per cent to Rs 222.8 crore in January-March of 2017-18 compared to Rs 209.4 crore in the year-ago period, NIIT said in a statement.Voltas, ICRA, Central Bank, Bajaj Finance, Bajaj Finserv , Alembic, Quess Corp, Balkrishna Industries, Lux Industries and Man Infra are some of the notable names scheduled to release their March quarter earnings on Thursday.The new chairman of the Rs 300 billion Murugappa Group MM Murugappan said the conglomerate would invest Rs 2000 crore in capital expenditure over the next two fiscals. The capex, group CFO Sridharan Rangarajan said would be allocated towards a gas-based power plant in silicon carbide maker Volzhsky Abrasive Works (VAW), a Carborundum Universal (Cumi) subsidiary. The capacity of the gas fired power plant in Russia however has not been finalised, he said.Foreign brokerage Morgan Stanley has maintained 'overweight' rating on the stock and has set target price of Rs 2,000 per share. Shriram Transport is one of brokerge house's top picks. It says recent correction in the stock gives a good entry point.Global brokerages have given thumbs up to the stock post Q4 results. Morgan Stanley has maintained 'overweight' rating on the stock with target price of Rs 320 per share whereas Citi has maintained 'buy' with target price of Rs 350/share.On a consolidated basis, net profit of JSW Steel rose 185.33 per cent to Rs 2,879 crore on 22.96 per cent rise in net sales to Rs 20,027 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 16 May 2018.On a consolidated basis, net profit of Prataap Snacks declined 12.50 per cent to Rs 10.08 crore on 26.64 per cent rise in net sales to Rs 269.75 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 16 May 2018.Net profit of Muthoot Finance rose 40.28 per cent to Rs 451.39 crore on 6.1 per cent decline in total income to Rs 1,608.03 crore in Q4 March 2018 over Q4 March 2017. The result was announced after market hours yesterday, 16 May 2018.Divi's Laboratories announced that its Unit-I at Choutuppal, Telangana State has had an inspection by the US Food and Drug Administration (USFDA) from 14 to 16 May 2018. This was a general Current Good Manufacturing Practice (cGMP) inspection by the FDA. The inspection has been concluded with no 483 observations. The announcement was made after market hours yesterday, 16 May 2018. | domestic shares are likely to open on a flat note on Thursday, tracking Nifty on SGX and global markets. Tata Steel posted a profit of Rs 10,187.23 crore for the quarter ended March 31, 2018 against a consolidated loss of Rs 725.14 crore in the corresponding quarter last year. skills and talent development company NIIT said its consolidated net profit declined by about 21 per cent to Rs 19.7 crore for the fourth quarter ended March 2018. | Positive |
https://www.moneycontrol.com/news/business/adb-to-provide-4-million-to-member-countries-to-contain-coronavirus-outbreak-4990291.html | Asian Development Bank (ADB) will provide a total of USD 4 million (about Rs 29 crore) to help developing countries in Asia and Pacific to fight the outbreak of novel coronavirus (COVID-19).
The Manila-headquartered multilateral funding agency had earlier in February announced USD 2 million for fighting the disease and approved another USD 2 million in late February.
The Asian Development Bank has approved a further USD 2 million to help developing countries in Asia and the Pacific contain the outbreak of the novel coronavirus and improve resilience to this and other communicable diseases, it said in a release last week.
The funds will be available for all ADB developing member countries in updating and implementing their pandemic response plans.
ADB said the assistance will be for purposes including buying emergency supplies and equipment, assessing health system and economic impacts to improve future resilience, and coordinating better regionally to prevent, detect, and respond to animal and human disease outbreaks.
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 work will be conducted in close collaboration with the World Health Organization.
"The severity of the COVID-19 outbreak is escalating, and past disease outbreaks have had large impacts on social and economic development," ADB Vice-President for Knowledge Management and Sustainable Development Bambang Susantono said.
"ADB's funding will help countries catalyze efforts to mitigate further damage to the health of families and economies and position them to better respond to the current and future outbreaks," he added.
The first tranche assistance was to strengthen the immediate response capacity in Cambodia, China, Laos, Myanmar, Thailand, and Vietnam.
ADB said over the longer term, it can be scaled up to focus on supporting pandemic preparedness and building resilience.
ADB also provided a private sector loan of up to CNY130 million (USD 18.6 million) to Wuhan, PRC-based Jointown Pharmaceutical Group Co Ltd to enhance the distribution and supply of essential medicines and protective equipment.
"Past epidemics have shown that impacts can rapidly extend to all areas of a country's economy, triggering fiscal shocks with long-term negative consequences that threaten stability and economic growth," ADB said.
Countries and businesses that rely on tourism are particularly vulnerable. Trade and supply chains also suffer, it added. | the Asian Development Bank (ADB) will provide a total of USD 4 million (about Rs 29 crore) the funds will be available for all ADB developing member countries. a vaccine works by mimicking a natural infection. a vaccine also helps quickly build herd immunity to put an end to the pandemic. a vaccine works by mimicking a natural infection. | Positive |
https://www.moneycontrol.com/news/trends/book-review-trends/book-review-pandeymonium-a-glimpse-into-iconic-ad-maker-piyush-pandeys-mindset-thought-process-5529931.html | India ad spends are expectred to see a growth of 23.2 percent to reach an estimated Rs 80,123 crore this year.
Pandeymonium: Piyush Pandey
on Advertisingby Piyush Pandey
Published by
Penguin India
Whether or not you are an advertising professional, you likely already know the name of Piyush Pandey as a celebrity advertising professional. Pandey, the lynchpin of ad agency Ogilvy India, is famous for conceptualising advertising campaigns that not only tweaked the synapses, but also twanged the heartstrings of the viewers, stoking their consumeristic aspirations in a newly liberalised Indian economy. This book tells us how Pandey thinks, what his values are, that is, what makes him tick -- a sense of curiosity about Indian life and culture, massive ambition, a drive for excellence, and a penchant for identifying heartwarming content.
Pandey was among those Indians who most effectively linked life’s priceless moments to the marketing of products and services -- a linkage that was neither essential nor inevitable. If this is a form of manipulation, then it is also an indictment of the entire field of advertising, which is designed to create demand where it often does not exist. Pandey clearly does not think so; he only praises advertising’s potential to bring about social change, without dwelling at length on the ethics of advertising itself, and what an ethical form of advertising might look like. Curious, then that Pandey’s values as a communicator are conveyed right at the beginning of the book: “Whatever you say, say it with respect for the audience, say it in a context that the audience can understand, say it spontaneously, say it without fear, say it not to intimidate or frighten, but to delight”.
The book is structured as a series of anecdotes culminating in advice from Pandey’s playbook for advertising professionals. For instance, Pandey writes of Ogilvy’s rules on the use of music in their commercials. “Suresh Mullick (National Creative Director, and Pandey’s mentor) taught me... not to create music and lyrics that take the brief literally. The second is never to force music onto the consumer. The third is not to ‘sing’ brand names.” Each anecdote, which is too brief to be called a case study, comes with nuggets of advice such as these.
Pandey has a freewheeling style of narration, and sometimes it is hard to discern the thrust or flow of a chapter. There are passages where facts are simply mentioned in passing to whet our appetite but not to slake our hunger through elaboration. For instance, in a chapter on Ogilvy India’s work with family-run businesses, we are told in about 125 words that Pandey considers it his personal failure never to have worked with the Mahindra Group of companies. The chapter ends there abruptly. Why mention this at all if you’re not going to explain it adequately?
Happily, though, Pandey gives us a glimpse into his mode of generating advertising ideas. He writes, “Whenever I feel bereft of ideas or hit a block, I find inspiration by rewinding life to my childhood and going back to my formative years. That’s when the mind was pure, unafraid, unconstructed and unfettered”. That points us to the source of the emotional energy of Pandey’s ideas.
Many of his famous ad campaigns are mentioned in the book. I will single out, however, his agency’s work on the campaign done for the Bharatiya Janata Party ahead of the 2014 Lok Sabha elections, including the famous slogan, Ab ki baar Modi sarkar. This chapter, like the others, is dealt with too breezily; more detail about the rationale behind the choice of messaging tone and content would have further benefited the students of advertising whom this book will naturally attract.
Pandey also devotes attention to the future of the advertising business in India. Of course, his book was written before the COVID crisis hit; his bullish predictions of the ad industry growing by 11-12 percent year on year now seem like fiction.
To sum up: this book makes the general audience relive their memories of landmark ad campaigns that defined the consciousness of post-liberalisation India. But the book is not written in order to be a comprehensive explainer of advertising to the lay reader. What the book does do is to give us a glimpse into Pandey’s mindset and thought process; so the book will be of interest to advertising professionals and students of the subject.
Suhit Kelkar is a freelance Journalist. He is the author of the poetry chapbook named The Centaur Chronicles. | ad spends expected to grow 23.2 percent to reach an estimated Rs 80,123 crore this year. lynchpin of ad agency Ogilvy India, is famous for conceptualising ads. he was among those who most effectively linked life's priceless moments to marketing. he praises advertising's potential to bring about social change without dwelling on ethics. | Positive |
https://www.moneycontrol.com/news/india/covid-19-helping-accelerate-investments-in-cloud-ai-and-cybersecurity-5275941.html | With the COVID-19 pandemic disrupting businesses globally, technology will play a "stronger role than ever before", enabling economic recovery, Microsoft India President Anant Maheshwari said.
Speaking at the Microsoft Envision Forum 2020, Maheshwari noted that the coronavirus pandemic has changed businesses, communities, industries and the world, forever.
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"No one company is going to solve a challenge like this alone, and it is going to take the private and public sectors working together to turn the tide on COVID-19. As we continue to work through the current situation and plan for the future, it's clear that the change required is significant - as is the potential opportunity across industries," he said.
He added that technology will play a key role in management of social sector programs across education, health and public distribution, helping to strengthen the economy.
"Technology will play a stronger role than ever before - enabling economic recovery and helping each one of us achieve more," he emphasised.
The event, which was organised digitally on Friday, saw industry leaders across banking, financial services and insurance, manufacturing and retail sectors deliberate on the need for innovation and real-world digital transformation.
Aarthi Subramanian, group chief digital officer of Tata Sons, said COVID-19 will accelerate the scaling of digital across industries and investments in cloud, artificial intelligence and cybersecurity.
"Digital transformation in companies will focus on new end-to-end customer journeys and we will see an increase in adoption of automation in manufacturing industries. They will also invest in enhancing employee engagement given the remote working model," she added.
Follow our full coverage of the coronavirus pandemic here. | Microsoft India president anant Maheshwari says technology will play a "stronger role than ever before" he says technology will play a key role in management of social sector programs. the coronavirus pandemic has changed businesses, communities, industries and the world. the event was organised digitally on friday. aarthi subramanian, group chief digital officer of Tata Sons, said COVID-19 will accelerate scaling of digital across industries. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/industries-need-not-fear-about-closure-if-an-employee-tests-positive-tn-chief-secretary/articleshow/75763320.cms | Chennai: "Industries need not fear that the moment someone is identified (as positive for Covid-19), the factory will be shut," said Chief Secretary K Shanmugam on Friday while addressing captains of industry from various sectors in the State for a panel discussion organised by the Chennai International Centre.Quelling the fears that some of the panelists expressed, the Chief Secretary said that the State's focus was now on taking bold decisions to revive the economy "We are not bothered about the numbers," he said. "Our basic idea is to catch every positive case and bring it down. We know we have to fight Covid-19 parallelly because we cannot shut down industry and economic activities. But we have to do it with caution and care."He said that the Chief Minister has a plan in place to open up the economy in a phased manner and that the State will be moving in for the next phase of relaxation while treading the path of caution.During the course of the discussion the Chief Secretary said that the Tamil Nadu government had freshly issued an order that further relaxes the norms."Functioning of all industrial units, including textile units, is permitted in urban areas excluding Chennai city police commissionerate jurisdiction with 50% workers in shifts by duly observing Standard Operating Procedures," he said while reading from the order.He said that all industrial activities too would be allowed in village and town panchayats while clarifying that earlier there was some restriction on textile units but now that too has also been cleared.The second big relaxation is that export-oriented units can function with 50% strength in all areas across the State excluding Chennai, the Chief Secretary said. Earlier only sampling was permitted for textiles and leather exporters but now manufacturing too is being permitted.Earlier in the day, the government had announced that government offices in Tamil Nadu will function with 50% work force from Monday and that employees would be given rotational duty. The government order also stated that Saturday has also been made a working day.The panel discussion was attended by TVS Motor Company's Venu Srinivasan, Foxconn's Josh Foulger, Saint-Gobain India's B Santhanam, ELGI Enterprises' Dr Jairam Varadaraj, TCS Consulting Services' K Krithivasan and was moderated by V Shankar of CAMS.During the course of the discussion, representatives from various other industries too gave recommendations for how the government could provide them with help to restart economic activity.Industry captains emphasised the need for the State to look at building better social infrastructure while also finding innovative means to help SMEs and MSMEs to cope and tide through the crisis. The need for upskilling locals while also providing a conducive work environment for migrant labour was among the other issues that were highlighted.While the Central government's move to provide SMEs and MSMEs with financial stimulus was lauded, questions were raised about whether providing subsidised loans would help much as 'the obligation of repayment' still looms. | chief secretary says the state is now taking bold decisions to revive the economy. he says the state will be moving in for the next phase of relaxation. he says the government has issued an order that further relaxes the norms. the panel discussion was attended by TVS motor company's Venu Srinivasan. the chief secretary says the state is focusing on a "bright" plan to revive the economy. | Positive |
https://economictimes.indiatimes.com/news/economy/indicators/at-niti-aayogs-meet-pm-narendra-modi-asks-states-to-help-push-growth/articleshow/64627391.cms | Prime Minister Narendra Modi wants to lift India’s economic growth rate to double digits after it recovered to a sevenquarter high of 7.7% in the March quarter, with the onus on states to do their bit to contribute to the effort while cautioning the country that the task will be challenging.The Centre will continue to focus on farm income and mining, Modi told the fourth meeting of the Niti Aayog ’s governing council on Sunday and reiterated the work done by his government across social sectors in the past four years.The Centre is looking to the states to take a lead on improving exports and set ambitious growth targets at their level. The prime minister has sought suggestions from the states for incentivising fund allocation under the finance commission. Besides, he urged states to consider the Centre’s proposal for holding simultaneous elections in the country while adopting a uniform voter list for the nation to begin with. He also said they should take initiatives aimed at improving the ‘ease of living’ for people.TARGETING DOUBLE-DIGIT GROWTHModi said the Indian economy grew at a healthy 7.7% in the fourth quarter of FY18. “The challenge now is to take this growth rate to double digits, for which many more important steps have to be taken,” he said. Boosting growth is critical to the government’s aim of generating jobs, raising incomes and eradicating poverty The Niti Aayog governing council is the highest policy-making body of the government think tank and is chaired by the prime minister. It consists of union ministers and chief ministers of all states besides top officials of the Aayog. The six-hour meeting on Sunday was attended by chief ministers of all states except Delhi, Goa, Jammu & Kashmir, Odisha, Manipur, Mizoram, Sikkim and Tripura.Addressing the special status demand of certain states, Niti Aayog vice-chairman Rajiv Kumar said the focus of the governing council meeting was statutory provisions granted to bifurcated states and the Centre has assured them these will be fulfilled. States such as Bihar and Andhra Pradesh have been demanding special status from the Centre. Recognising that corporate investment in agriculture is low in India, the prime minister said states should formulate policies that promote such investment in areas such as warehousing, transportation, value addition and food processing.He called for a high-level committee comprising the chief ministers of Madhya Pradesh, Bihar, Sikkim, Gujarat, Uttar Pradesh, West Bengal and Andhra Pradesh to come up with a coordinated policy approach to greater synergy between agriculture and the Mahatma Gandhi National Rural Employment Guarantee Scheme, including pre-sowing and post-harvest phases. The committee will be chaired by Madhya Pradesh chief minister Shivraj Singh Chouhan.Outlining the significance of mining in economic growth as well as employment generation, Modi said the blocks that have been successfully auctioned should start production at the earliest. However, the council did not introduce the much-anticipated development agenda for New India 2022 at the governing council meeting, saying it would have been inappropriate to do so without consulting the states.“The draft development agenda was not tabled today as we should subject this to states for getting their detailed inputs,” Niti Aayog vice-chairman Kumar said. “It will be sent to states for their detailed comments in a day or two and we hope to finalise it in one-and-a-half months. | the prime minister said the Indian economy grew at a healthy 7.7% in the fourth quarter of FY18. he urged states to consider the Centre's proposal for holding simultaneous elections in the country while adopting a uniform voter list. the centre is looking to the states to take a lead on improving exports and set ambitious growth targets at their level. | Positive |
https://economictimes.indiatimes.com/news/company/corporate-trends/cos-scale-up-cleanliness-protocol/articleshow/76250374.cms | Empower Your Corporate Journey with Strategic Skill Courses Offering College Course Website Indian School of Business ISB Leadership in AI Visit Northwestern University Kellogg Marketing Leadership Development Program Visit IIM Lucknow IIML Chief Operations Officer Programme Visit
Kolkata: With lockdown measures being eased further to jump-start the economy, Indian companies are making sure that enhanced safety and sanitisation protocols are maintained at their offices as more employees return to work on Monday amid rising cases of Covid-19 L’Oreal, Salesforce, RPG Group Panasonic Life Solutions and Flipkart are among those that are doubling down on hygiene for employee safety, in turn driving a surge in business for on-demand service providers and facility management companies.More frequent deep-cleaning, sanitisation, fumigation and disinfection cycles have been planned as the cost of a slip-up could be huge for firms. While this means a jump in housekeeping costs of 30-60%, according to experts, companies say they will not be making any compromises.L’Oreal is ensuring a 35-step health and safety protocol is adhered to before any of its offices reopens. “The safety and health of our employees is paramount, hence we have taken strict precautions to ensure the highest levels of hygiene and safety,” said Roshni Wadhwa, director of HR.RPG Group has tied up with professional services firms to ensure that sanitisation and disinfection is carried out with rigour at all its plants and offices, said its chief talent officer, Supratik Bhattacharya.At Panasonic Life Solutions India, arrangements for fumigation of office premises and sanitisation every two hours, deep cleaning of the facility every week during work offs and fumigation activity would be vital, said Akash Sangole, head of HR and general administration.Flipkart is conducting deep fumigation and frequent sanitisation, apart from taking other measures.Salesforce said its No.1 priority is safety, health and wellbeing of employees and their families.Service providers, including those who were earlier focused on the home space, said there’s a deluge of queries from corporates.Urban Company, which earlier focused on home services, is seeing this as an opportunity to enter the office space, while online on-demand service provider Housejoy is seeing a four-fold jump in queries.Asset management venture MPowered is planning a mobile application that will enable companies to check and create audits for the sanitation process so that employees feel safer.Sanchit Gaurav, CEO of Housejoy, said that given the spurt in demand, in the last two weeks, they have got into fumigation services and increased their spread to 30 cities from six. Besides offices, they are seeing demand from malls, doctors’ chambers and restaurants which are opening up, he said. Fumigation services typically cost Rs 1-1.5 per sq ft, while the cost for deep cleaning is Rs 3-4 per sq ft.There’s been a 60-95% increase in demand for housekeeping services from corporates, which want to know how their workplaces can be kept Covid-compliant, said Sudeep Singh, CEO, MPowered. Their planned app will give employees access to the complete flow of how one would step into an office and audit how efficiently the sanitisation was conducted, he said.Urban Company, which forayed into fumigation and disinfection recently, is now looking at it as a core business. “These particular services are much more skewed towards offices, accounting for as much as 75%,” said Ankit Agarwal, VP-business. | companies are doubling down on hygiene for employee safety as more employees return to work. sanitisation, fumigation and disinfection cycles planned as cost of slip-up could be huge. a surge in business for on-demand service providers and facility management companies. a spokesman for a sanitisation company said it was 'not a matter of time' | Positive |
https://www.moneycontrol.com/news/business/apple-ceo-tim-cook-is-fulfilling-another-steve-jobs-vision-5750481.html | (Image: Reuters)
Apple co-founder Steve Jobs, who died in 2011, was a tough act to follow. But Tim Cook seems to be doing so well at it that his eventual successor may also have big shoes to fill.
Initially seen as a mere caretaker for the iconic franchise that Jobs built before his 2011 death, Cook has forged his own distinctive legacy. He will mark his ninth anniversary as Apple's CEO Monday -- the same day the company will split its stock for the second time during his reign.
Grooming Cook as heir apparent was “one of Steve Jobs' greatest accomplishments that is vastly underappreciated,” said long-time Apple analyst Gene Munster, who is now managing partner of Loup Ventures.
The upcoming four-for-one stock split, a move that has no effect on share price but often spurs investor enthusiasm is one measure of Apple's success under Cook.
The company was worth just under $400 billion when Cook the helm; it's worth five times more than that today, and has just become the first U.S. company to boast a market value of $2 trillion. Its share performance has easily eclipsed the benchmark S&P 500, which has roughly tripled in value during the past nine years.
But it hasn't always been easy. Among the challenges Cook has faced: a slowdown in iPhone sales as smartphones matured, a showdown with the FBI over user privacy, a US trade war with China that threatened to force up iPhone prices and now a pandemic that has closed many of Apple's retail stores and sunk the economy into a deep recession.
Cook, 59, has also struck out in into novel territory. Apple now pays a quarterly dividend, a step Jobs resisted partly because he associated shareholder payments with stodgy companies that were past their prime. Cook also used his powerful perch to become an outspoken advocate for civil rights and renewable energy, and on a personal level came out as the first openly gay CEO of a Fortune 500 company in 2014.
Apple declined to make Cook available for an interview. But it did point to 2009 comments Cook made to financial analysts when he was running the company while Jobs battled pancreatic cancer.
Asked what the company might look like under his management, Cook said that Apple needs “to own and control the primary technologies behind the products we make."
It has doubled down on that commitment, becoming a major chip producer in order to supply both iPhones and Macs. He added that Apple would resist exploring most projects “so that we can really focus on the few that are truly important and meaningful to us."
That laser focus has served Apple well. At the same time, though, under Cook's stewardship, Apple has largely failed to come up with breakthrough successors to the iPhone. Its smartwatch and wireless ear buds have emerged as market leaders, but not game changers.
Cook and other executives have dropped hints that Apple wants make a big splash in the field of augmented reality, which uses phone screens or high-tech eyewear to paint digital images into the real world. Apple has yet to deliver, although neither have other companies that have hyped the technology.
Apple also remains a laggard in artificial intelligence, particularly in the increasingly important market for voice-activated digital assistants. Although Apple's Siri is widely used on Apple devices, Amazon's Alexa and Google''s digital assistant have made major inroads in helping people manage their lives, particularly in homes and offices.
Apple also has stumbled a few times under Cook's leadership.
In 2017, it alienated customers by deliberately but quietly slowing the performance of older iPhones via a software update, ostensibly to spare the life of aging batteries. Many consumers, though, viewed it as a ploy to boost sales of newer and more expensive iPhones. Amid the furor, Apple offered to replace aging batteries at a steep discount; later it paid $500 million to settle a class-action lawsuit over the matter.
Apple has also faced government investigations into its aggressive efforts to minimize its corporate taxes and complaints that it has abused control of its app store to charge excessive fees and stifle competition to its own digital services. On the tax front, a court ruled in July that Apple did nothing wrong.
Cook has turned the app store into the cornerstone of a services division that he set out to expand four years ago. At the time, it was growing clear that sales of the iPhone -- Apple's biggest money maker -- were destined to slow down as innovations grew sparse and consumers kept their old devices for longer.
To help offset that trend, Cook began to emphasize recurring revenue from app commission, warranty programs and streaming subscriptions to music, video, games and news sold for the more 1.5 billion devices already running on the company's software.
Apple's services division now generates $50 billion in annual revenue, more than all but 65 companies in the Fortune 500. Ives estimates Apple's services division by itself is worth about $750 billion -- about the same as Facebook currently is in its entirety.
That division could be worth even more now had Cook done something many analysts believe Apple should have done at least five years ago by dipping into a hoard of cash that at one point surpassed $260 billion to buy Netflix or a major movie studio to fuel its video streaming ambitions.
Buying Netflix seemed like within the realm of possibility five years ago when the video streaming service was valued at around $40 billion. Now that Netflix is worth more than $200 billion today, that idea seems off the table, even for a company with Apple's vast resources. (AP) PMS PMS . | apple co-founder and CEO Tim Cook will mark his ninth anniversary as CEO. the company will split its stock for the second time during his reign. the company was worth just under $400 billion when Cook the helm. it's worth five times more than that today. the company has just become the first U.S. company to boast a market value of $2 trillion. | Positive |
https://www.moneycontrol.com/news/business/economy/once-called-living-monumental-of-failure-mgnrega-has-seen-increased-budget-allocations-since-inception-5277991.html | More than 1.04 crore migrant workers across the country returned to their home states amid the coronavirus pandemic-led livelihood crisis
In the final tranche of the Rs 20 lakh-crore COVID-19 economic relief package, Finance Minister Nirmala Sitharaman on May 17 announced an additional Rs 40,000 crore allocation under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). This is over and above the Rs 61,500 crore budgeted earlier in February.
This would take the total allocation to the scheme up to Rs 1.01 lakh crore.
In February 2006, the United Progressive Alliance (UPA) government notified MGNREGA for the first time on an experimental basis in about 200 districts.
MGNREGA's creation was unanimously regarded by economists and experts as a milestone in the right-based entitlement framework of India, providing for the first time, legal guarantee for wage employment.
Of the 365 days in a year, the Act guaranteed a minimum 100 days of employment to every willing household, within 15 days of making such a requisition. A failure to provide employment within 15 days from the date of requisition had to be compensated through an unemployment allowance.
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
In FY07, then finance minister P Chidambaram made a budget allocation of Rs 14,300 crore for MGNREGA. In FY08, Rs 12,000 crore were allocated to the rural employment scheme. The following year, the budget provided Rs 16,000 crore to the scheme.
FY10 saw a record jump in allocation for the scheme with the Centre announcing Rs 39,100 crore for it. Rs 40,100 crore were earmarked for the scheme each in FY11 and FY12.
The FY13 budget saw a decline in allocation to Rs 33,000 crore, which remained unchanged in FY14.
After the Bharatiya Janata Party (BJP)-led National Democratic Alliance (NDA) government came to power in 2014, the budget allocation for MGNREGA in 2014-15 was Rs 34,000 crore.
In 2015, Prime Minister Narendra Modi said in Parliament that MGNREGA was a 'living monument of the failures' of the Congress party. However, two years of consecutive droughts and farm prices seeing historic lows due to slump in global commodities market, led the NDA government to use MGNREGA to revive and bailout rural India.
In the budget for 2015-16, the Modi government allocated Rs 34,699 crore to MGNREGA. Then finance minister Arun Jaitley allocated another Rs 7,000 crore through the supplementary demand for grants in the Monsoon Session. This took the total allocation for the year up to Rs 41,699 crore. This was the highest ever for any year and higher than the previous fiscal year’s revised estimates by around 26 percent.
In FY17, the budget allocated Rs 37,000 crore to the employment guarantee scheme. The following year, allocation to the scheme jumped to Rs 48,000 crore. In 2018-19, the programme again saw a sizeable increase in allocation to Rs 55,000 crore. In FY20, it was Rs 60,000 crore.
Also read | Govt allocates additional Rs 40,000 crore to MGNREGA, will help migrant workers headed home: FM
The novel coronavirus pandemic and nationwide lockdown has once again thrown India's poor into distress. While announcing the final tranche of economic relief measures, targeted to reach help and revive the economy, FM Sitharaman said the decision to increase MGNREGA's allocation is expected to generate nearly 300 crore person-days in total, and that the move will especially benefit those migrant workers who have returned to their native villages.
"Considering that monsoon is approaching and migrant workers are heading home because of the coronavirus-induced lockdown, the additional allocation will ensure jobs for them in rural areas," FM Sitharaman said. | more than 1.04 crore migrant workers across the country returned to their home states. the government has announced an additional Rs 40,000 crore allocation under the scheme. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. the good news is that the virus SARS-CoV-2 has been fairly stable. | Positive |
https://www.livemint.com/Money/vnoMeXHU2YcTZXxqB7tZWJ/China-output-curbs-rupee-fall-put-specialty-chemicals-on-a.html | The steep correction in the equity markets notwithstanding, shares of specialty chemical producers, Aarti Industries Ltd and SRF Ltd, continue to hold above the year-ago levels. Aarti Industries is up 42% over the past year compared with a 2% fall in the BSE 500 index. SRF is up about 5%. Shares of specialty chemicals firm Vinati Organics Ltd also held up rather well—up 25% from a year ago.
The outperformance reflects the improving business environment. Sanjeev Hota, associate vice president (research) at Sharekhan Ltd, says Indian companies are gaining market share after China’s imposition of stricter environmental rules curbed supplies, triggering vendor diversification.
According to Edelweiss Securities Ltd, the tighter environmental rules have raised production costs in China, leading to cost competitiveness and increasing outsourcing opportunities for Indian manufacturers. “Though there are no sufficient data points to substantiate this, management commentaries, industry articles, etc., corroborate our view," analysts at Edelweiss said in a note.
While the sharp rupee depreciation should aid the domestic industry’s export competitiveness, Hota of Sharekhan warns that all companies will not benefit uniformly from vendor reorganization. Companies such as Aarti Industries, which have greater exposure to the export business, are seen to be better placed. Compared to SRF, Aarti Industries also derives a large portion of its revenues from the chemicals business—85% compared to 32% at SRF.
Apart from vendor consolidation due to production curbs in China, the recovery in the global agrochemicals market is another opportunity. After years of stagnation, the global agrochemicals market is on the path to recovery. “Things have started perking up during the latter part of FY18. Initial signs of the slowdown cycle bottoming out are apparent—global commodity prices are strengthening, agrochemical exports from China have dipped and the INR has weakened. Moreover, inventory levels are low," add analysts at Edelweiss.
The management commentaries too have been alluding to recovery in the global agrochemicals market. After releasing its first-quarter results, SRF said it expects the specialty chemicals business to rebound in the second half of the fiscal year, tracking the recovery in global agrochemicals.
These developments have helped the stocks. But as an analyst at a wealth management firm says, the key now is upside potential. As Aarti Industries announced large order wins, the stock has seen strong gains. It now trades at 16 times FY20 earnings compared to SRF’s 14 times.
“While Aarti Industries is reflecting all the positives, SRF is discounting all the negatives," adds the analyst, referring to delayed recovery in global agrochemicals demand.
A difference of a percentage point or two in valuation may not be a major deterrent for investors. What matters more is business and earnings momentum. On these yardsticks, Aarti Industries is on the forefront, winning two large orders and diversifying into new value chains. While SRF’s positive commentary should translate into earnings in the coming quarters, continued business gains (order wins) by Aarti Industries will strengthen investor confidence in the stock.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | shares of specialty chemical producers, Aarti Industries and SRF, continue to hold above the year-ago levels. the outperformance reflects the improving business environment. tighter environmental rules have raised production costs in china. the recovery in the global agrochemicals market is another opportunity. after years of stagnation, the global agrochemicals market is on the path to recovery. | Positive |
https://www.financialexpress.com/economy/indo-us-limited-trade-deal-nearly-ready-piyush-goyal/2071861/ | A “limited” India-US trade deal that has been in the works for months is “nearly ready” and can be “finalised at any time”, commerce and industry minister Piyush Goyal said on Tuesday.
Speaking at a virtual leadership summit of the US-India Starategic Partnership Forum, Goyal said US trade representative Robert Lighthizer and he has agreed that “we can look finalising before the election, but otherwise soon after the election”.
Goyal stressed that it’s going to be a “foundation deal” that will deepen bilateral trade engagement. “India is open to signing tomorrow on what we have agreed on,” he added, indicating India’s readiness to clinch the deal on the points of convergence at the earliest. “India believes that it has to be win-win for both countries, and what we have created, the architecture of the initial deal, is in the best interests of businesses of both countries,” he said.
Sources had earlier told FE that the “limited” deal could cover annual trade of over $13 billion, or roughly 15% of bilateral shipment, which also included a complete restoration of duty benefits for New Delhi under the so-called Generalised System of Preferences (GSP). However, if an agreement is reached quickly on widening the coverage, the initial deal could take the shape of a preferential trade agreement, amounting to a much higher value of annual trade.
India may consider opening up its dairy and poultry sectors partially if it gets a good deal from the US in textiles and garment and pharmaceuticals. In garments, for instance, the US import duties (for India) currently range between 16.5% and 32%. This deal may be followed by talks on a potential free trade agreement (FTA).
As part of the limited deal, India will likely reduce tariffs on high-end bikes like Harley Davidson, pledge greater market access in farm products, including cherry, and sweeten its initial offer on easing price caps in medical equipment, a source had said earlier. India is willing to apply trade margin on coronary stents and knee implants at the first point of sale (price to stockiest), instead of imposing it on the landed prices, as was proposed by it initially, to make it more attractive for American companies like Abbott. India is also willing to resolve certain non-tariff measures, such as certification process for some dairy products and market access in alfalfa hay and pork.
Already, in July, Goyal had suggested that both India and the US could clinch a quick trade deal. “We should be able to get the quick trade deal out of the way after a few more calls. India and the US must sit down to negotiate a robust FTA but before that we can even look at an early harvest trade agreement for 50-100 products,” Goyal had said.
If the US agrees to roll back its extra tariff of 25% on Indian steel and 10% on aluminium, New Delhi will lift retaliatory steps and scrap punitive duties on 29 American goods, including farm items like almond, apple and walnut. This is expected to augur well for the Trump administration before the Presidential elections in November.
The US has been pressing India to abolish/cut “not justified” tariff on motorcycles (50%), automobiles (60%) and alcoholic beverages (150%). It is seeking better trade balance with India through greater market access in agriculture and dairy products.
The “limited deal” was earlier expected to be announced after Prime Minister Narendra Modi’s meeting with American President Donald Trump in New York on September 24 last year. However, differences over certain sticky issues caused the delay.
India’s trade surplus with the US has been shrinking, as it has stated importing oil and gas from the largest economy, something that India has been highlighting.
According to the US government data, New Delhi’s trade surplus with Washington eased to $24.3 billion in 2016 to $23.3 billion in 2019. According to the Indian government data, imports from the US stood at $35.7 billion in FY20, up 0.3% even though overall merchandise imports dropped by 7.8%. | trade minister says a limited deal is "nearly ready" and can be finalised at any time. sources had earlier said the deal could cover annual trade of over $13 billion. the limited deal could also include a complete restoration of duty benefits for New Delhi. the deal may be followed by talks on a potential free trade agreement (FTA). | Positive |
http://www.moneycontrol.com/news/business/markets/gains-in-auto-banks-helps-sensex-end-300-pts-higher-nifty-eyes-10600-2516471.html | Favourable global cues, surge in domestic sectors such as auto, financials and metals, ensured that the market continued its momentum in the March series, which began on Friday. The Street had witnessed a bounce-back on that day.
Benchmark indices began the week on a strong note, with the Sensex opening around 100 points higher. But a further surge among metals, auto and financial names, along with midcaps, helped indices extend their gains and steady at high points of the day. Both of them ended around 1 percent higher.
Meanwhile, on the losing side, IT names have seen some selling pressure after the rupee bounced back. Weakness persisted in pharma names such as Dr Reddy’s and Sun Pharma. Maruti Suzuki and Tata Motors have emerged as the top gainers in trade today, while Sun Pharma, TCS and Infosys were the top losers.
The Sensex was up 303.60 points or 0.89% at 34445.75, while the Nifty is up 91.60 points or 0.87% at 10582.60. The market breadth is narrow as 1606 shares advanced, against a decline of 1159 shares, while 222 shares are unchanged.
Tata Motors, Larsen & Toubro, Axis Bank and UPL gained the most on both indices, while Sun Pharma, Infosys, and Tech Mahindra lost the most.
“The Nifty index and S&P BSE Sensex rose about 0.9% each and held strong above the levels of 10,500 and 34,000 points, respectively. Shares of key automobile and metal companies led gains in benchmark equity indices. On the other hand, shares of information technology (IT) companies lagged post a slight appreciation of the rupee against the US dollar and after Nasscom stated that it expects India’s IT sector exports to grow by 7-9% in FY2019, slightly higher than the expected growth of 7.8% in this year,” Karthikraj Lakshmanan, Senior Fund Manager-Equities, BNP Paribas Mutual Fund.
Among stocks, several big names were in focus based on corporate developments.
First up, shares of Dr Reddy's Laboratories erased gains after slipping over4 percent intraday after the USFDA maintained OAI status for the company's Srikakulam plant.
Sterlite Technologies added more than 10 percent intraday before ending 6 percent higher on the back of order win worth Rs 3,500 crore.
Welspun Enterprises ended 4 percent higher after it emerged as lowest bidder for a project in the state of Tamil Nadu.
Reliance Infrastructure closed over 2 percent higher after it won arbitration award worth Rs 292 crore against Goa government
Sun Pharma ended over 2 percent lower after investors reacted to the observations received for its Halol plant by US FDA.
Simbhaoli Sugars and Oriental Bank of Commerce plunged 10-16 percent after the CBI filed a complaint against the sugar firm for a fraud worth Rs 109 crore towards OBC.
Meanwhile, in the precious metals space, Gold rose by Rs 80 to Rs 31,660 per ten gram at the bullion market today, tracking a firm trend overseas amid increased buying by local jewellers.
Silver also recovered by Rs 225 to Rs 39,700 per kg due to increased offtake by industrial units and coin makers.
Marketmen said apart from a firm trend overseas as weakness in dollar boosted safe haven demand, persistent buying by local jewellers kept gold prices higher.
Globally, gold rose 0.82 per cent to USD 1,339.10 an ounce and silver by 1.33 per cent to USD 16.72 an ounce in Singapore.
In the national capital, gold of 99.9 per cent and 99.5 percent purity advanced by Rs 80 each to Rs 31,660 and Rs 31,510 per ten gram, respectively.
Among global markets, Asian markets closed higher, tracking gains seen on Wall Street as U.S. bond yields receded from recent four-year highs. Meanwhile, the dollar slipped against a basket of currencies and investors awaited a testimony from the new Federal Reserve chair.
Meanwhile, at the time of writing this story, European stocks were higher as investors prepared for an event-packed week of economic data.
Going forward, experts are treading with caution ahead. “IT and pharma took a break from having rallied over the past few sessions and were weak in trade today, Auto and banks outperformed and held up for the session. Overall we continue to hold a slightly bearish outlook; we believe indices are overvalued at the current juncture and would not advocate entering fresh longs at this juncture," Nikhil Kamath, Co-Founder and Head of Trading, Zerodha said in a statement. | Sensex opened 100 points higher on friday, while the nifty was up 91.60 points or 0.8% at 10582.60. pharma names such as dr reddy's and sunpharma also saw some selling pressure. meanwhile, pharma names such as maruti Suzuki and Tata Motors have emerged as the top gainers in trade today. | Positive |
https://economictimes.indiatimes.com/markets/stocks/earnings/mphasis-expects-to-beat-industry-growth-in-fy21/articleshow/75739041.cms | Pune/Bengaluru: Midsize IT firm Mphasis expects to grow faster than the industry average in fiscal year 2021, as clients in banking and financial services spend more on technology to shift operations away from offices to the Cloud, following the Covid-19 pandemic.“Our exposure to segments affected by the shutdown hasn’t been much, it’s mainly financial services, wealth management and security houses. The crisis has shown how every business is a digital business,” CEO Nitin Rakesh told ET.In the weeks since the outbreak, Mphasis saw businesses forced to go digital in its main markets in the US and Europe and this is likely to continue.With companies needing to shift to a virtual model, most customers are looking at how they can engage with clients in a seamless and contactless manner. The company will focus on doing just that. “For us, the ability to have the security architecture and design layer to do this while ensuring that you can carry your past investments with you will be key,” Rakesh said.The further acceleration of digital transaction capability for digital contactless customer experience redesign and remote onboarding as well as leveraging data strategies could drive growth going forward.There would be some short-term concerns around the outbreak, but the company had negligible exposure to industries like airlines which have been hit the hardest.Mphasis has been growing at higher than market rates over the last few years, and Rakesh said he expected more clarity on growth numbers in July.The Europe region has grown at about 14% in the past year and the company expects this to continue in the next year as well.The company reported a nearly 11% increase in net profit at Rs 1,184.80 crore for the previous fiscal year that ended March 31.New deal wins were worth $751 million, of which 81% were in new-generation services.Revenue rose 14.3% to Rs 8,843.50 crore.The contribution of Blackstone portfolio companies is currently in the high single digits, and a growth driver for the business, said Rakesh.Blackstone is the majority shareholder in Mphasis.Rakesh also said that there could be vendor consolidation with companies preferring to work with fewer partners. It would not, however, be easy since the risk and complexity associated with remote working had to be balanced with business continuity and operations. | Mphasis expects to grow faster than the industry average in fiscal year 2021. clients in banking and financial services spend more on technology to shift operations away from offices to the Cloud. the company reported a nearly 11% increase in net profit at Rs 1,184.80 crore for the previous fiscal year. the european region has grown at about 14% in the past year. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/all-aadhaar-issues-have-been-settled-nandan-nilekani/articleshow/70399773.cms | FMCG Sales Climb as Rural Demand Sees Green Shoots India’s packaged consumer goods grew 9% by value and 8.6% by volume in the September quarter from the year earlier, aided by higher spending in rural India for both essentials and discretionary products, researcher NielsenIQ said.
In India, 200 M Users is a Relatively Small Number; We’ve Room to Grow Snap Inc, parent company of messaging app Snapchat, made news for doubling its user base in India to 200 million within the space of a year, buoyed by greater adoption of new products such as short video offering Spotlight that is taking on the likes of Instagram Reels and YouTube Shorts. | consumer goods grew 9% by value and 8.6% by volume in the September quarter. higher spending in rural India for both essentials and discretionary products. snap Inc, parent company of messaging app Snapchat, made news for doubling its user base in india to 200 million within the space of a year. boosted by greater adoption of new products such as short video offering Spotlight. | Positive |
https://www.financialexpress.com/lifestyle/get-authentic-banarasi-silks-enchanting-itras-and-more-up-govt-website-is-a-treasure-for-handicraft-lovers/2147038/ | Once upon a time, many, many moons ago, there was an era when people used to shop (for real). You would stroll the markets, experience the buzzing bylanes and look for that saree or that design of sliver chaandbali. Shopping would mean channelising inner Buddha energy and keeping calm while haggling over price or perfect deal. This was the usual way until coronavirus changed our lives forever. The pandemic forced most of us to stay home and shopping essentially became a virtual exercise.
But what if you want best of Banarasi silks and that enchanting itra? While there are many online options available right now, there is always a nagging doubt over the authenticity of the product. So, in case you are looking for that ‘just right’ gift or something for yourself, there is a special website that will cater to all your handicraft needs. The UP government’s site has now started getting traction. While the website is still in its early stage, there are some unique plans in offing. Such as connecting the customers to the artist and buyers knowing about the backstory of each product in their carts.
In an exclusive email interview, UP government’s Additional Chief Secretary Navneet Sehgal (MSME, Khadi and Village Industries and Information and Public Relations Department) told the Financial Express.com about the grand ‘ODOP’ initiative plans, which supports PM Narendra Modi’s ‘vocal for local’ vision.
Here are the edited excerpts:
Q: Tell us about the ‘One District One Product’ initiative.
A: Launched in 2018, the ‘One District One Product’ (ODOP) is the flagship programme of the Uttar Pradesh government. The objective of the programme is to preserve, develop and promote local arts, crafts and traditional skill of communities spread across each district of Uttar Pradesh. We not only present a platform but also provide training to the artisans. For example, the artisans of the old wood carving industry of Saharanpur needed training. Now under the ODOP scheme, we are providing training facilities to them. This will not only improve the products, but will also decrease the production time. Additionally, the programme aims to add to the income and local employment thus, preventing migration due to lack of employment opportunities. We have further revived the traditional clusters.
Q: What steps have govt taken to mainstream these artisans?
A: The state government after an extensive ground study has identified unique products in every district during the launch of the programme. The MSME Department through its three ODOP schemes and through MOU partners is bringing the ODOP product aligned artisans under the ambit of the ODOP Programme. Furthermore, they are encouraged to onboard on important e-marketplaces like Amazon & Flipkart, through both, online & offline workshops (both are MOU partners of the ODOP Cell – The nodal body of the ODOP Programme)
Q: Please tell us about some commercial collaborations.
A: Apart from our website, we have joined forces with major players in the retail market that can provide much-needed exposure to our artisans. From Amazon to Flipkart, our products are available on these ecommerce sites and we have got very encouraging responses. a Singapore-based business-to-business platform Buy2SELL has written to us, expressing its intent to sell ODOP products online. The company which has B2B network in most of the countries in Asia and Europe, was quite impressed by ODOP and has asked for a detailed list of the products.
The World Bank too has evinced interest to develop the ecosystem of 14 agricultural and food processing products related to ODOP with the aim of promoting entrepreneurship through integrated cluster development.
Q: Is govt providing any help in terms of funds and skill training to the artists?
A: Yes, for supporting the artisans under ODOP Programme, there are two schemes, Margin Money Scheme and Training/ Tool Kit Scheme.
The Money Margin Scheme is aimed at promoting self-employment among ODOP artisans/ workers by addressing access to finance issue – by lending margin money (ranging up to Rs20 lakh), through formal banking system. The incentive ranges from:
S.No Project Cost (Rs. In Lakhs) Margin Money Subsidy
Up to 25 25% of the Project Cost or a maximum of Rs 6.25 lakh, whichever is less
2 . More than 25 to up to 50 20% the Project Cost or a maximum of Rs 6.25 lakh, whichever is high
More than 50 to up to 150 10% of the Project Cost or a maximum of Rs 10 lakh, whichever is high More than 150 10% of the Project Cost or a maximum of Rs 20 lakh, whichever is less
Q: Can you please elaborate on the process of mapping the products on e-commerce websites?
A: The products were selected keeping in mind the regional specialisation, advanced skill set used in production and artisanal cluster intensity of a product in the districts. For example – In Varanasi one can find Silk product clusters that specialise in the unparalleled art of “Banarasi weaves”. In near future, we will also connect the local artists and the buyers via our website odopmart.com . For this, we are training the artisans. | one district one product' initiative launched in 2018. aims to preserve, develop and promote local arts, crafts and traditional skill of communities spread across each district of Uttar Pradesh. 'we are providing training facilities to artisans', says UP government. 'we have revived the traditional clusters of artisans', says UP government. 'we are providing training facilities to artisans', says UP government. | Positive |
https://www.moneycontrol.com/news/technology/foxconn-set-to-begin-production-trials-of-apples-top-end-iphone-x-models-in-india-3763691.html | Foxconn Technology Group is reportedly gearing up to begin production of the latest iPhones in India. According to a report by Bloomberg, Apple will soon start manufacturing iPhone X models in India.
Foxconn, Apple’s primary global component manufacturer, will begin production of iPhone X models temporarily and could scale production in its Chennai production facility if initial trials are successful.
While Apple’s iPhones are already quite expensive, import duties in India take the asking price up by 20 to 30-percent. Take for example the budget iPhone XR, that launched for around Rs 75,000 (Approx. $1100) as compared to its $750 release price in the US. While Apple is slashing the prices of its devices, it simply isn’t enough.
The Cupertino-based tech firm currently holds less than 2-percent of share in India’s smartphone market, mainly on account of its cost-competitive market.
Apple manufactures the Apple iPhone 6 and SE in India and the new move is targeted towards eliminating import duties so as to reduces the prices of their offerings in India’s massive smartphone market.
The expansion might also include the iPhone 7 as the Indian government has approved Rs 5000-crore proposal by Wistron, to increase the capabilities of its production facilities in the country.
With Apple’s market share on the decline in China due to several restrictions imposed on the tech giant, diversifying its business to Indian markets seems like the next logical conclusion.
Last year alone, India saw the sale of over 140 million smartphones with Apple only accounting for a meagre 1.7 million as compared to the lion’s share held by the affordable Chinese brands.
Apple will also be looking to add another major production centre for US iPhones amidst the worsening US-China trade war. | apple will soon start manufacturing iPhone X models in india. the move is targeted towards eliminating import duties. the company could scale production in its Chennai production facility. if initial trials are successful, apple could also expand to the iphone 7. last year, india saw the sale of over 140 million smartphones. apple is currently holding less than 2-percent of share in india’s smartphone market. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/43431-returns-in-15-years-this-stock-taking-long-strides-through-covid-crisis/articleshow/76544042.cms |
ETMarkets.com
A footwear stock has been taking long strides on Dalal Street these days, walking ahead of peers despite the Covid-19 disruption in the consumer space.Shares of the company have rallied 30 per cent from the lows of March 24 against a 39 per cent jump in the benchmark Sensex.This stock has been a consistent performer and a multibagger: up 53 per cent for last one year and 187 per cent in last five, 3,586 per cent for last 10 and 43,431 per cent for 15.Analysts say the stock should continue the ongoing momentum on hopes of faster recovery on the back of its strong product portfolio and improved distribution reach.This is Relaxo Footwears SBI Mutual Fund , the country’s biggest fund manager by assets, held 3.98 per cent stake in the company as of March 31, 2020.The company posted 4.8 per cent YoY dip in March quarter net profit at Rs 51.80 crore as disruptions owing to store closures from mid-March due to the nationwide lockdown led to a substantial contraction in top line. Revenues declined 15 per cent YoY to Rs 540.58 crore.Brokerage firm Sharekhan has a ‘buy’ rating on Relaxo Footwears with a price target of Rs 825.Sharekhan says demand for Relaxo hawaii chappals (around 40 per cent of Relaxo’s sales volumes) has started picking up. The company expects other segments to recover gradually after gradual opening of key markets. “Though FY2021 is expected to be subdued, we expect a strong recovery in FY2022,” the brokerage said.The brokerage said the company’s low penetration in the southern market, lower per-capita consumption in India at 1.66 pairs per annum compared with 6-7 pairs for other developing markets and lower global export contribution at around 4 per cent can be some of the medium to long-term growth drivers.Other analysts say any slowdown in sales recovery or a spike in key input prices remain key near-term risks for the stock.In its latest conference call, the footwear major said raw material costs are likely to remain benign in Q1FY21 and gross margins may sustain at the FY20 levels of 57-58 per cent. Major raw materials for the company include ethylene-vinyl acetate (EVA) and polyurethane (PU), which are imported from seven to eight countries.Relaxo Footwear over the years has maintained balance sheet prudence with a controlled working capital cycle, healthy asset turns of 2.5 times and return on capital employed (RoCE) at over 20 per cent.“While earnings may get impacted negatively in the near term (particularly in the first half of FY21), Relaxo through its strong balance sheet and brand patronage is expected to tide over the current situation,” said ICICIdirect.com The brokerage has a ‘hold’ rating on the stock with a revised price target of Rs 715 (Rs 775 earlier). Shares of the company traded at Rs 659 on June 24.Relaxo is planning cost cutting, mainly by trimming advertisement expenditure. It also plans to link contractual labour costs to production, and thereby, save on this front. At present, Relaxo’s fixed cost per month stands at Rs 35-40 crore, says Motilal.The size of the footwear market in India is estimated at Rs 70,000 crore: leather footwear contributes Rs 30,000 crore and the balance comes from non-leather footwear. The market size of PU footwear is around Rs10,000 crore.With a market capitalisation of nearly Rs 16,000 crore, the stock traded at a price-to-earnings (P/E) multiple of 70.21 times against a 10-year average of 37.76 times. This suggests the stock may be hovering in the overvalued zone against its long-term averages.“We bake in revenue CAGR of 10 per cent and Ebitda growth of 15 per cent, respectively, for FY20-22E. The stock currently trades at rich valuations. But we remain structurally positive on it. We would prefer to await better entry points at lower levels from a long-term holding perspective,” ICICIdirect said.In a June 22 report, Motilal Oswal Financial Services said e-commerce contributes 8-10 per cent of the company’s revenue, which is expected to rise to 10-15 per cent in five years. The Sparx category is growing fast pace online.The brokerage said there is no difference in Ebitda margins between distributor channel and online channel.The stock had one ‘ Outperform ’, two ‘Hold’, two ‘Underperform’ and one ‘Sell’ ratings on the publicly available Reuters Eikon platform on June 23.Other footwear majors have underperformed Relaxo in last one year. Bata India shares are down 4.42 per cent since June 2019, while Liberty Shoes is up 12 per cent. Equity benchmark Sensex is down 11 per cent for the comparable period. | shares of the company have rallied 30 per cent from the lows of March 24 against a 39 per cent jump in the benchmark Sensex. the stock has been a consistent performer and a multibagger: up 53 per cent for last one year and 187 per cent in last five. the company posted 4.8 per cent YoY dip in March quarter net profit at Rs 51.80 crore. | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/kolkata-overtakes-hyderabad-to-become-the-most-affordable-residential-real-estate-market-report/articleshow/78913700.cms |
New Delhi: Kolkata is the most affordable residential real estate market as it overtakes Hyderabad , according to the Home Purchase Affordability Index by property consultant JLL.The report shows that from 2011 to 2020, home purchase affordability improved across key Indian cities which were part of the Index.This was despite a bigger fall in annual household income as compared to residential property prices.A sharp decrease in the cost of funding (average home loan rates reduced from ~8.9% in 2019 to 7.5% in 2020), more than offset the adverse impact of lower incomes on affordability, the report added.“We believe that the initial signs of revival were visible in the residential market in the third quarter of 2020, with sales of residential units witnessing an uptick. Furthermore, our analysis suggests that despite a fall in household income in 2020, home purchase affordability has increased in 2020 across all the markets under consideration,” said Ramesh Nair, CEO and Country Head, JLL India.Until 2019, the affordability index has indicated that Hyderabad was the most affordable residential market.Mumbai continued to be the only market below the affordability threshold of 100. However, the report points out that Mumbai is the fastest moving city, showing a significant improvement on JLL HPAI from 47 in 2011 to 95 in 2020.“The future of the residential market and the sustenance of the recovery process depends on the containment of the virus. 2021 can pan out in two different ways. If the virus is contained by Q1 2021 and economic activity resumes at full capacity, affordability is expected to improve across all the cities under consideration,” said Samantak Das, Chief Economist and Head of Research & REIS India, JLL.Das said that if the virus outbreak is not contained in the first quarter of 2021 and economic activity remains subdued, affordability levels are likely to remain at similar levels in most cities.The report takes in consideration whether a household earning an average annual income (at an overall city level) is eligible for a housing loan to buy a 1,000 sq ft residential property in the city, at the prevailing market price and home loan interest rate.It analyses the interplay between three factors - property prices, income and home loan rates to determine the current and the emerging trends in the home purchase ability of urban households.The index covers the top seven markets in India - Mumbai, Delhi NCR, Bengaluru, Chennai, Pune, Hyderabad and Kolkata. | the home purchase affordability index was released by property consultant JLL. it shows that from 2011 to 2020, home purchase affordability improved across key Indian cities. this was despite a bigger fall in annual household income as compared to residential property prices. Mumbai is the fastest moving city, showing a significant improvement on JLL HPAI from 47 in 2011 to 95 in 2020. | Positive |
https://www.financialexpress.com/market/share-market-today-live-updates-sensex-nifty-rupee-vs-dollar-sgx-nifty-future-and-options-expiry-banks-tvs-motors-sbi-liquidity-coronavirus-may-28-thursday/1973113/ | Share Market News Today | Sensex, Nifty, Share Prices Highlights: Domestic equity market benchmarks BSE Sensex and Nifty 50 settled nearly 2 per cent higher on Thursday lifted by a rally in auto and banking stocks, ahead of the expiry of futures and options contracts of May series. The 30-share Sensex jumped 595 points or 1.88 per cent to end the session at 32,200. While the broader Nifty 50 index settled 175 points or 1.88 per cent higher at 9,490. Barring three stocks out of 30 Sensex stocks, 27 scrips finished trade in positive territory. Larsen & Toubro (L&T) was the top Sensex gainer with a growth of 5.88 per cent led by Hero MotoCorp, HDFC Bank, IndusInd Bank and Maruti Suzuki. RIL and HDFC twins contributed majorly to the Sensex gains today. ITC, State Bank of India (SBI) and Bharti Airtel were the only losers on the pack. Except for Nifty PSU Bank, all the sectoral indices ended the session with upticks. Nifty Auto index advanced 3.65 per cent led by gains in Eicher Motors, Motherson Sumi Systems and Bharat Forge.
India may need to inject up to Rs 1.5 trillion into its state-owned lenders as their pile of soured assets is expected to double during the coronavirus pandemic, three government and banking sources told Reuters. The government initially considered a budget of around 250 billion rupees for bank recapitalisations but that has risen significantly, a senior government source with direct knowledge of the matter said, with loan defaults likely to rise as businesses take a severe hit from nationwide lockdowns to tackle the coronavirus. | Sensex jumped 595 points or 1.88 per cent to end the session at 32,200. broader Nifty 50 index settled 175 points or 1.88 per cent higher at 9,490. Sensex gainer was lt;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t;t; | Positive |
https://www.financialexpress.com/economy/another-milestone-for-farm-sector-now-kharif-acreage-at-lifetime-high-bumper-harvest-likely/2072475/ | With a favourable monsoon this year, the agriculture sector has drawn the silver linings on the dark clouds of India’s severe economic stress. After a bumper rabi harvest, the acreage of the Kharif crops has skyrocketed to a lifetime high in the current year. The area sown for Kharif crops surged 7.2 per cent in only a year to 108.2 million hectares by 28 August 2020, according to the Centre for Monitoring Indian Economy. The area sown this Kharif season is higher by almost two million hectares, compared to the normal acreage for the Kharif season, which is 106.6 million hectares. On top of it, the sown area is likely to rise further by 2.5 to 3.5 per cent this year.
Good pre-monsoon rainfall; the normal onset of monsoon and its rapid advancement over the country; and overall satisfactory progress of rainfall during the monsoon season so far contributed to the increase in area sown during this Kharif season, CMIE added. The acreage under all major pulses like arhar, green gram, and black gram has also crossed the normal acreage for the season.
Also Read: Thousands of farmers to get employment with govt’s new cold chain projects in these states
While the construction sector has halved in the first quarter and the manufacturing sector has nosedived amid the nationwide lockdown, the agriculture sector remained almost unaffected from the curse of the pandemic. The farm sector recorded a growth of 3.4 per cent against the overall GDP contraction of 23.9 per cent in Q1 FY21.
Meanwhile, the sharp expansion in acreage across most major crops and the strong revival in monsoon in August indicate a bumper harvest this season. However, continued heavy rains pose a threat to the Kharif crop. Rainfall at over 40 per cent above the long period average (LPA) was recorded during week-ended August 19 and week-ended 26 August, CMIE underlined. Also, the rising cases of coronavirus in rural areas also pose risk to the flourishing farm sector. | the area sown for Kharif crops surged 7.2% in only a year to 108.2 million hectares by 28 august 2020. on top of it, the sown area is likely to rise further by 2.5 to 3.5% this year. the farm sector recorded a growth of 3.4% against the overall GDP contraction of 23.9 per cent in Q1 FY21. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/india-can-become-trusted-partner-in-global-supply-chains-piyush-goyal/articleshow/77437106.cms | The world is looking for trusted partners where there is rule of law, transparency in systems, strong judiciary and democratic traditions, and India can become a key player in global supply chains as it provides all of these, Commerce and Industry Minister Piyush Goyal said on Saturday. He said India has to engage with the world with competitive prices, high quality products, large scale economies of manufacturing, high productivity levels, but "not on the crutches" of government subsidies.The world is "looking for trusted partners...who have a rule of law, who have transparency in the system, who have a court of appeal, which have vibrant media, strong judiciary and democratic traditions. These are the type of partners the world is looking for and India provides all of these and can become a trusted partner in global supply chains," the minister said in a CII webinar.Talking about the performance of the country's exports, Goyal said the current numbers of outbound shipments are reflecting signs of significant improvement.He said exports last month reached about 91 per cent level as compared to July 2019."In fact, in the last 10 days of August, we are at over 95 per cent export level. If you remove oil based and gem and jewellery exports, , we have actually grown in July and in the last 10 days of July, we have grown by above 10 per cent and I think that should be the music to ears for all the analysts who are worried about whether it will be 'U' shape or a 'V' shape recovery."But at the same time, we cannot rest on our laurels. This is a short term phenomenon, we all need to work harder to institutionalise this," he added.The minister also said that for the last 11 days, Indian railways have been running the freight trains at twice the speed of what they were running one year ago."So from about 23 km/hr, freight trains today are running at 46 km/hr," he said adding for the first time in the history of Indian railways, rather than industry coming to railway and pleading that their material be given priority, today railway is reaching out to industry to get more freight.In the last 11 days, the minister said, Indian railways have moved 4 per cent more freight than they did in the same 11 days of 2019.Goyal also said many people wondered earlier why India had imposed restrictions on export of medicines.He said the restrictions were never meant to stop supply of medicines, they were rather imposed to ensure an equitable distribution across the globe, otherwise in the period of crisis, a few nations would have cornered all the available pharmacy and medical stocks and the poor, and less rich countries would have remained deprived of adequate medicines.Further he said that "when we talk of a STRONG India, we are talking of India where 'S' stands for 'sabka saath, sabka vikas, aur sabka vishwas' , 'T' is for total focus on goal of a self-reliant India, 'R'- resilient India, 'O' for opening up ourselves to new horizons, 'N' stands for nationalism and 'G' stands for gearing up for a better tomorrow." BUSSpeaking in a separate webinar, Goyal said the government is working towards using the current crisis to strengthen the economy and make India a self-reliant country.He said the government announced an Aatmanirbhar Bharat package, several initiatives were taken and "many many more that are on drawing board, will be unfurled in the days and months to come".Addressing the convocation ceremony of Meghnad Desai Academy of Economics, he said Aatmanirbhar Bharat does not mean looking inwards or closing doors for the world."There will be products where we will have to continue to import, India is not against imports per se, India is not closing its doors to global engagement, India is expanding it wider," he added. | india can become a key player in global supply chains, says commerce and industry minister. india has to engage with the world with competitive prices, high quality products, he says. he says the country has to be "not on the crutches" of government subsidies. he says the country has to provide a rule of law, transparency in the system and a court of appeal. | Positive |
https://economictimes.indiatimes.com/markets/forex/rupee-opens-27-paise-down-at-69-87-against-dollar/articleshow/66915243.cms | The rupee on Monday opened 29 paise down at 69.87 against dollar on account of some buying in American currency by importers and banks amid some recovery in crude oil prices.US and Brent crude oil futures jumped after the United States and China came to an agreement on Saturday on trade issues that would put off new tariffs. Brent crude was up over 4 per cent in the international markets, while WTI crude was trading over 5 per cent higher at 53.62 per barrel.The local currency strengthened by 27 paise to close at a four-month high of 69.58 against the US currency on Friday.Foreign investors pumped Rs 12,260 crore into the domestic capital markets last month, making it the highest inflow in 10 months due to falling crude oil prices and sharp rupee appreciation.The inflow comes following a net withdrawal of close to Rs 60,000 crore from the capital markets (equity and debt together) in the preceding two months (September and October).Prior to that, FPIs had invested Rs 7,300 crore during July and August.On the domestic front, market participants will be keeping an eye on the RBI policy meeting, where the central bank is expected to hold rates unchanged. On Friday, data showed India’s economy grew 7.1 per cent in Q2 compared to growth of 8.2 per cent in the previous quarter. Motilal Oswal Financial Services in a report said, “Today, USDINR pair is expected to quote in the range of 69.70 and 70.30.” | rupee opens 29 paise down at 69.87 against dollar on account of some buying in American currency by importers and banks. the local currency strengthened by 27 paise to close at a four-month high of 69.58 against the US currency on friday. the inflow comes following a net withdrawal of close to Rs 60,000 crore from the capital markets (equity and debt together) | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/howard-marks-bull-bear-case-outlook-on-end-of-virus-crisis/articleshow/74926401.cms | He said there is no doubt about the ability of the governments and on the US Fed’s massive cash injection to make things better for the US economy in the short run.
Billionaire investor Howard Marks has sounded more worried in his latest memo amid looming concerns related to the coronavirus pandemic, a sharp fall in crude oil prices and the risks they pose to the broader economy.He said there is no doubt about the ability of the governments and on the US Fed ’s massive cash injection to make things better for the US economy in the short run.He said in a positive case scenario, better news will arrive in the not-too-distant future. To support the statement, he highlighted that the earliest countries to contract the virus have shown good progress.“Every forecast I’ve seen assumes that the virus will be brought under control within three months or so. The curve is flattened and then turned downward. The virus is contained and then eliminated,” he said.The co-founder of Oaktree Capital Management believes the negative impact of the endemic on the global economy will be sharp, but brief.“The term ‘V-shaped’ dominates most forecasts, both between Q2 and the second half and between 2020 and 2021,” he said.He said telling people to stay home, thus causing businesses to close, is the economic equivalent of putting a patient into coma to facilitate curing a serious disease.“The government will provide life support to the economy during the coma and bring the patient out of coma after she is cured,” he said, adding that banks are much less vulnerable than they were during the Global Financial Crisis, with only one-third of leverage.“Thus. concerns over the health of the overall financial system are greatly reduced,” he said.However, in the negative case scenario, Marks is more worried than a dreamer. “Maybe that’s what made me a better credit analyst than an equity analyst,” he said.He says he is worried about the outlook for the disease, especially in the US. The total number of coronavirus cases in the US has surpassed both China’s and Italy’s, and is still rising rapidly.“I’m concerned that the number of cases and deaths will continue to rise as long as we fail to emulate the actions of successful countries,” Marks said.The market veteran also sounded concerned about the economy. “Many millions will be thrown out of work. People will be unable to patronise businesses. Not only will workers miss paychecks and businesses miss revenue, but businesses’ physical output will tail off, meaning essential food may run short,” Marks wrote.The longer the people remain at home, the more difficult it will be to bring the economy back to life.He said there are chances of defaults by the leveraged entities based on price markdowns, rating downgrades and perhaps on portfolio assets. “We may see increased ‘haircuts’ on part of lenders, margin calls, portfolio liquidation and forced selling,” he said.The crash in crude prices is another concern for the oil-producing companies and nations. This may lead to further job losses.Marks said the range of negative outcomes seems much wider today. “Social isolation, disease and death, economic contraction, enormous reliance on government action and uncertainty about the long-term effects are all with us, and the main question that surrounds us is, how far will they go,” he asked. | he said in a positive case scenario, better news will arrive in not-too-distant future. he said the earliest countries to contract the virus have shown good progress. he said the negative impact of the endemic on the global economy will be sharp, but brief. he said banks are much less vulnerable than they were during the global financial crisis, with only one-third of leverage. | Positive |
https://www.moneycontrol.com/news/business/markets/gold-vs-bank-fd-which-investment-delivered-better-returns-in-long-term-6208041.html | Source: Reuters
Gold, as an asset class, has had one of its best years in recent memory. The yellow metal prices have risen over 20 percent year-to-date, though most gains came earlier in the year following the flash crash in equity markets brought about by the coronavirus outbreak.
Since their early rise, gold prices have mostly seen consolidation in the second half of the calendar year 2020, without giving away much of its gains. Consequently, the metal has performed much better than other asset classes, such as equity and oil. In 2020 so far, the Nifty is up 11 percent, while crude oil WTI Futures is deep into the negative territory at -24 percent.
In India, gold is not just a mode of investment, its accumulation is linked to social status and in some cultures, it is even considered as a bearer of good fortune. Hence, many Indians prefer buying physical gold in the form of jewellery, coins or bars compared to other modes of investments such as futures and exchange-traded funds. Also, it is not uncommon for families to accumulate gold and endow it to future generations.
Gold has been hovering around Rs 50,000 per 10 gram. A kilogram of gold would cost about Rs 50,00,000. This means if you have a kilo of gold, you could swap it for a top-of-the-line German luxury car such as a Mercedes E class or a BMW 5 series.
To get an idea of how gold has done over the years, we have compared yellow metal's price across decades, beginning 1980, to the 40-year average of bank Fixed Deposit Rates (1980-2020) i.e 8.43 percent, as shown by the Reserve bank of India (RBI).
RBI has provided an average of FD rates from different banks across 40 years, though individual banks pay different rates. For gold, we have taken the average cost of a kilo of the metal across different years, provided by Bank Bazaar.
We assume you had a kilo of gold in 1980. Had you sold it in 1980 itself, when the average price of 1kg gold was Rs 1,33,000, and reinvested the money in FDs, you would be sitting on Rs 33,87,115 today. This amounts to a compounded 2,446 percent return in 40 years.
In 1990, data shows that the average cost of 1 kilo of gold was Rs 3,20,000. If you would have sold the gold then and put in FDs, you would be sitting on Rs 36,27,719 today. A 1,033 percent return in 30 years!
Meanwhile, from 1980 to 1990, your investment in gold would have only returned 140 percent.
The average cost of 1 kilo of gold in 2000 was Rs 4,40,000. Your investment would have grown 405 percent to Rs 22,20,454 from 2000-2020 if invested in FDs. From 1980-2000, your gold investment would have grown 231 percent.
The average cost of gold in 2010 was Rs 18,50,000. If you would have sold 1 kilo of gold during that time and reinvested in bank FDs, you would be sitting on Rs 41,55,911. Between 1980-2010, your 1kg of gold would have returned 1291 percent.
Had you saved the gold all these years and sold it in 2020. You would have earned a 3,659 percent return on the yellow metal.
From our ballpark figures, it is fair to say that gold outshone bank FDs across 40 years, but it is also important to note that fixed deposits are considered to be the most secure investment option in India. Another thing that stood out is the power of compounding, as even the safest bet would have delivered a 2,400 percent return had it been given enough time. | gold prices have risen over 20 percent year-to-date. gold has performed much better than other asset classes, such as equity and oil. a kilogram of gold would cost about Rs 50,00,000. gold is a mode of investment. gold is not just a mode of investment, its accumulation is linked to social status. a kilogram of gold would cost about Rs 50,00,000. | Positive |
https://economictimes.indiatimes.com/news/international/world-news/joe-biden-may-change-course-on-iran-but-obstacles-abound/articleshow/79128895.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/money/the-real-state-of-real-estate-in-india/1790805/ | Amidst the talk of people losing jobs, auto sales going down, factories getting shut and a looming slowdown, there is much to despair. However, the fact remains India is still growing at a rate of 5%, which is though below expectations, but still much better than many other countries, when put in the global context. The fundamentals of Indian economy and key drivers of India’s growth story remain largely intact and it seems only a matter of time when we will see all concerns of slowdown getting addressed.
One of the sectors having a strong correlation with GDP growth is real estate. A recently-released report “India 2030: Exploring the Future” by CBRE in partnership with CREDAI puts the real estate sector in focus and while projecting insights about the future, analyses the megatrends shaping this sector and economy. The report talks about the five pillars which will drive growth in the next decade: viz. Demographics, Cities, Real Estate, Climate and Sustainability and Technology. Going beyond the IMF projection and the government’s vision of a $5-trillion economy, the report projects GDP for 2030 at $9 trillion, making India third largest economy in the world. It’s a no brainer that real estate growth and overall economic growth is in a closed feedback loop with one facilitating the other.
Real estate has different facets: residential, office, retail, land etc. with each facet being impacted by megatrends emerging in the economy. Entrepreneurship is one such megatrend. Fueled by digital technology and riding on the demographic dividend, India is moving towards being a startup nation. More than 7000 startups have been incepted during 2013-18, with the startup base growing by 12-15% on an annual basis. This growth will fuel the growth of office spaces which is estimated to grow to a billion sq. ft. by 2030. New models of office spaces are coming up, with co-working space bringing in a new paradigm. WeWork, Innov8 (now acquired by Oyo) and many other companies are flocking on to reap dividend out of this opportunity.
The strengthening retail and E-commerce space will further drive the real estate growth. According to the report, warehousing demand is poised to strengthen with projection to reach 500 mn sq ft by 2030. E-commerce companies adopting an omnichannel approach will further drive this growth. With India emerging as the third-largest consumer market after the US and China, retail shopping centre stock is expected to cross 120 million sq ft by 2030.
The residential space is not to be left behind. Growing urbanization, a workforce dominated by Millennials and Gen-Y, rising urbanization and development of a digital economy are reshaping the residential space. New emerging business models, digitalization narrowing the space of intermediaries are disrupting the ecosystem and leading to new opportunities. Startups like Nest Away, Oyo have entered this space and bringing in innovation, raising quality as well as improving access. A rising middle class will fuel the demand for residential spaces. Out of estimated 386 million households, almost 40% will be urban residents. Affordable housing, an emerging trend supported by the government, will assume more significance with a total of 10 million houses planned to be delivered by 2020 itself under the Pradhan Mantri Awas Yojana (Urban).
In this trajectory of growth, the government will have to play a major role as that of a facilitator and regulator. Initiatives like Smart City, Pradhan Mantri Awas Yojana are driving the growth while regulations like RERA bringing order to the chaos, a method to the madness. The startup India mission is facilitating the entry of more entrepreneurs, thus the growing need for office spaces. The Make In India initiative and eased FDI norms are giving a boost to manufacturing, with companies like Apple entering into manufacturing in India. Growing manufacturing will create more jobs, fuel rising aspirations, and creating more avenues of real estate growth. As recapitalization of banks take place and the NPA crisis recedes, private sector investment will witness further growth.
The real state of real estate might not look encouraging in the very short term, but it’s like investing in mutual funds. While the usual disclaimer applies, the future looks bright in the long term. The best time for real estate is always in future.
(By Neh Srivastava, Under Secretary, Ministry of Home Affairs & President, Central Secretariat Services Officers Society) | report by CBRE focuses on five pillars which will drive growth in next decade. pillars include Demographics, Cities, Real Estate, Climate and Sustainability and Technology. report projects GDP for 2030 at $9 trillion, making India third largest economy in the world. 7000 startups have been incepted during 2013-18, with the startup base growing by 12-15% on an annual basis. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/shivaram-hebbar-labour-sugar-minister-cant-force-law-on-struggling-msme-sector/articleshow/75413869.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/infrastructure/airlines-aviation/more-world-class-airports-in-india-soon-fm-sitharaman-announces-6-more-airports-for-ppp-bidding/1961191/ | More world-class airports in India soon! Finance Minister Nirmala Sitharaman in her press conference on May 16 announced today announced that the bid process for more airports in the country under the Public Private Partnership (PPP) model will start soon. The Airports Authority of India (AAI) has awarded 3 airports out of 6 for Operation and Maintenance on the PPP model. The annual revenue of the 6 airports in the first round is Rs 1,000 crore (against current profit of Rs 540 crore per year). AAI will get a down payment of Rs 2,300 crore. Six more airports have been identified for the second round and the bidding process for these will begin immediately. The idea of awarding these airports on the PPP model is to get world-class transit hubs in India.
According to FM Sitharaman, the additional investment by private players in the 12 airports in the first and the second rounds is expected to be around Rs 13,000 crore. Another six airports have been identified for the third round of bidding.
According to Sitharaman, industrial infrastructure upgradation will be a key focus area. “Structural reforms are the focus of today’s press conference,” Sitharaman said, adding that with these steps the idea is to find the right horizons for growth of the Indian economy.
The announcements are part of the Rs 20 lakh crore economic stimulus package promised by PM Narendra Modi in his address to the nation earlier this week. Since then, FM Sitharaman has held three press conferences to announce various measures to boost the economy. The underlying theme of the package if “Atmanirbhar Bharat” or “Self-reliant India”. Since the infrastructure sector of the economy forms the backbone of economic growth, today’s announcements assume major significance. The infrastructure sector is also a key provider of employment, especially for migrants and labourers who are currently feeling the pain of the nationwide lockdown imposed to check the spread of Coronavirus pandemic. | the airports authority of india has awarded 3 airports out of 6 for operation and maintenance on the PPP model. the idea of awarding these airports on the PPP model is to get world-class transit hubs in india. the announcements are part of the Rs 20 lakh crore economic stimulus package promised by PM Narendra Modi earlier this week. the infrastructure sector of the economy forms the backbone of economic growth. | Positive |
https://www.financialexpress.com/market/hdfc-bank-icici-bank-axis-bank-shares-may-rally-up-to-42-morgan-stanley-sees-banking-recovery/2080779/ | BSE Bankex has underperformed the BSE Sensex in the past five months due to a lack of clarity around non-performing loans (NPL) cycle. From March 24, when Indian share markets crashed due to weak global cues on the back of the coronavirus pandemic, S&P BSE Sensex has rallied 51.49 per cent, while S&P BSE Bankex index has managed to gain 38.26 per cent. Despite this, Morgan Stanley expects the banking system to recover gradually and earnings to normalise for HDFC Bank, ICICI Bank and Axis Bank over the next 12 months. Considering the market share of large private banks across key retail segments, Morgan Stanley sees enough scope for them to gain market share as the economy stabilises. In its view, a few other factors such as weak competition, improving funding franchises and strong digital capabilities will also help.
Large private banks shares to surge up to 42%
Morgan Stanley has raised its price target on three large private banks with a potential upside of up to 42 per cent. The brokerage firm has maintained its overweight rating to all three stocks. “We raise PTs at large private banks, led by valuation roll forward and lower risk weights – ICICI Bank and HDFC Bank remain our top picks,” it said. Morgan Stanley raised its target price on ICICI Bank to Rs 525, from Rs 505 earlier, which is a 4 per cent change. It will take ICICI Bank to jump 41.71 per cent to achieve the target pegged by the brokerage. Similarly, hiking its target price by 4 per cent on Axis Bank too, Morgan Stanley has given Rs 600 as a revised target, as compared to Rs 575 earlier. The brokerage firm sees 34.18 per cent upside in the stock. While For HDFC Bank, it has revised its target price by 2 per cent. The new target price for the private lender is Rs 1,450, from Rs 1,425 previous. From the previous close level, the stock will have to jump 32.92 per cent to touch the target price pegged by Morgan Stanley.
For HDFC Bank, it has a target price of Rs 1,590 in the base case, Rs 790 in the bear case and Rs 1,945 in the bull case. For ICICI Bank it pegged the price target of Rs 560 in the base case, Rs 300 in the bear case and Rs 875 in the bull case. While, for Axis Bank, it set a target price of Rs 625 in the base case, Rs 355 in the bear case and Rs 1,170 in the bull case.
Rising COVID-19 cases likely to weigh on growth
Morgan Stanley expects a gradual macro recovery likely to weigh on growth and the NPL cycle. Indian economy had slowed significantly even prior to COVID-19 and was going through a significant credit crunch. The report highlighted that COVID-19, against this backdrop, will weigh on a quick growth recovery and the NPL cycle. While India has experienced a relatively high recovery rate/low death rate from COVID-19, new cases continue to rise and will likely weigh on the growth momentum. It expects India banks to see gradual loan growth recovery of 3 per cent in FY21 and 8 per cent in FY22 and material coronavirus-led new impaired loan additions.
HDFC Bank, ICICI Bank, Axis Bank hold strong balance sheets
As far as large private banks are concerned, in one-year absolute performance Axis Bank has delivered a negative return of 33 per cent while on a year-to-date (YTD) basis, it fell 41 per cent. HDFC Bank stocks lost 3 per cent in one year and dropped 14 per cent on YTD. ICICI Bank stocks declined 6 per cent in one year and 31 per cent on YTD basis. The research firm has had a positive view on large private banks given their strong balance sheets, which has further strengthened post the recent capital raises. “Moreover, the bulk of their lending in recent years has been to either highly rated corporate borrowers or to prime retail customers with existing liability relationships, implying relatively lower asset quality hits, unlike the bulk of the banking system,” it added. | despite this, Morgan Stanley expects the banking system to recover gradually. it sees enough scope for large private banks to gain market share. it will take ICICI Bank to jump 41.71 per cent to reach the target. meanwhile, for HDFC Bank, it has revised its target price by 2%. the new target price for the private lender is Rs 1,450, from Rs 1,425 previous. | Positive |
https://www.moneycontrol.com/news/business/securitisation-volumes-up-128-to-rs-32300cr-in-jun-qtr-icra-2724571.html | ICRA | LIC cut stake in company to 6.54 percent from 9.27 percent earlier. (Image: Wikipedia)
Securitisation volumes surged by 128 percent year-on-year to Rs 32,300 crore during the June quarter, the highest ever recorded in the first quarter, on clarity over GST and a low base, rating agency Icra said today.
"The unprecedented increase in Q1 volumes for securitisation transactions could be attributed to clarification from the revenue department earlier this fiscal on the non-applicability of GST on the transfer of receivables in securitisation/assignment transactions," said Vibhor Mittal, head - structured finance, Icra.
He added that some of the large originators had stayed away from the market in the previous fiscal due to this concern, leading to the low base, which helped the growth number.
In the same period last year, ahead of the nationwide implementation of the goods and services tax (GST), there were investor concerns on asset quality of retail loans post demonetisation which had impacted the securitisation volumes, he said.
Securitisation, which entails bundling up of assets by originating lenders and selling them against the future receivables, helps the economy as it frees up capital for the originators which can be utilised productively, Mittal said.
Pass through certificate (PTC) transactions grew by 69 percent to Rs 11,300 crore, while direct assignment transactions increased around 180 percent to Rs 21,000 crore, according to Icra.
Meeting the priority sector lending requirements continued to be the dominant driver for securitisation, it said, adding that half of the PTC transactions and 70 percent of the direct assignment transactions can be attributed to it.
The growth in securitisation volumes came even as relatively tight liquidity position in capital markets and the upward movement, as well as high volatility in yields, meant that the "situation was not very conducive for on-balance sheet borrowings", it said.
Also, the spurt in securitisation was despite a significant 47 percent pickup in trading of priority sector lending certificates (PSLCs) to around Rs 86,300 crore during the quarter, the agency said.
The PSLCs act as an alternative to securitisation for banks falling short of meeting the mandated PSL requirements.
Mortgage loans dominated the securitisation volumes with a 79 percent share, including 66 percent home loans and 13 percent loans against property, it said. | securitisation volumes surged by 128 percent year-on-year to Rs 32,300 crore. it is the highest ever recorded in the first quarter. meeting the priority sector lending requirements continued to be dominant driver. mortgage loans grew by 69 percent to Rs 11,300 crore. LIC cut stake in company to 6.54 percent from 9.27 percent earlier. | Positive |
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