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https://www.financialexpress.com/economy/govt-announces-this-policy-to-reduce-steel-imports-save-energy/1759108/ | In a bid to ensure quality scrap for the steel industry, the government on Friday came out with a Steel Scrap Recycling Policy that aims to reduce imports, conserve resources and save energy.
The country’s steel scrap imports were valued at Rs 24,500 crore in 2017-18, while the deficit was to the tune of 7 MT.
“The policy aims to … promote circular economy in the steel sector”, besides promoting “a formal and scientific collection, dismantling and processing activities for end of life products that are sources of recyclable (ferrous, non- ferrous and other non-metallic) scraps which will lead to resource conservation and energy savings and setting up of an environmentally sound management system for handling ferrous scrap,” the Ministry of Steel said in a statement.
National Steel Policy 2017 aims to develop a globally competitive steel industry by creating 300 MT per annum steel production capacity by 2030 with a contribution of 35-40 per cent from EAF/IF (Electric Arc Furnace/Induction Furnace) route.
It said the scrap policy will ensure processing and recycling of products in an organised, safe and environment friendly manner, besides evolving a responsive ecosystem and producing high quality ferrous scrap for quality steel production minimising the dependency on imports.
The statement said the policy envisages a framework to facilitate and promote establishment of metal scrapping centres in India, which will ensure scientific processing and recycling of ferrous scrap generated from various sources and a variety of products.
Among others, it also aims to decongest the Indian cities from reuse of ferrous scrap, besides creating a mechanism for treating waste streams and residues produced from dismantling and shredding facilities in compliance to Hazardous & Other Wastes (Management & Trans boundary Movement) Rules, 2016 issued by the Ministry of Environment and Forests.
The policy is based on “6Rs principles of Reduce, Reuse, Recycle, Recover, Redesign and Remanufacture through scientific handling, processing and disposal of all types of recyclable scraps including non-ferrous scraps, through authorized centers / facility”.
The gap between demand and supply of scrap can be reduced in the future and the country may be self-sufficient by 2030, it added.
The ministry said its endeavour is to develop a globally competitive steel industry by adopting state-of-the-art environment friendly technologies.
Although scrap is the main raw material for secondary sector, the primary sector also uses scrap in the charge mix of BOF (Basic Oxygen Furnace) to the tune of 15 per cent to improve efficiency, minimise cost of production and other process needs.
There is a worldwide trend to increase steel production using scrap as the main raw material as recycling of scrap helps in conservation of vital natural resources besides other numerous benefits. The use of every tonne of scrap shall save 1.1 tonne of iron ore, 630 kg of coking coal and 55 kg of limestone. There shall be considerable saving in specific energy consumption also, the statement said.
It said the availability of scrap is a major issue in India and in 2017 the deficit was to the tune of 7 MT. This was imported at the cost of more than Rs 24,500 crore in 2017-18.
The government said the scrapping policy shall ensure that quality scrap is available for the steel industry.
Scrap is an important input for the electric furnaces. If quality scrap is provided as the charge to the electric furnaces, then the furnaces can produce high grade steel. High grade steel scrap shall not have the impurities if processing is done with the scrap processing centres and by shredders etc.
“The current supply of scrap is 25 MT from the domestic unorganised scrap industry and 7 MT from import of scrap. There is potential to harness this 7 MT of scrap that is currently being imported…
“To produce 7 MT more of scrap, the country shall require 70 scrap processing centres each with the capacity of 1 lakh tonnes; this is without disturbing the existing dismantling centres. The 70 scrap processing centres shall require about 300 collections and dismantling centres on the presumption that 4 collecting and dismantling centres cater to scrap processing centre,” the statement said.
In case of steel production rising to 250 MT, the requirement of scrap shall rise to 70-80 MT, it noted.
“This shall require about 700 scrap processing centres, that is 700 shredders. These shall in turn be fed by 2800-3000 collections and dismantling centres spread all over the country,” the statement said.
It added operating on the 4+1 hub and spoke model, where 4 collection and dismantling centres are to cater to 1 scrap processing centre, then 400 jobs would be created by one such composite unit.
“And for 70 units producing a total of 7 MT of scrap the potential for employment generation would be of 2800 persons. If the country was to produce 70 MT, as expected as per NSP 2017, the employment generation could be in the range of 3 lakh jobs,” the statement said. | the government has come out with a steel scrap recycling policy. the policy aims to reduce imports, conserve resources and save energy. the gap between demand and supply of scrap can be reduced in the future. the gap between demand and supply can be reduced in the future. the gap between demand and supply of scrap can be reduced. by 2030. the gap between demand and supply of scrap can be reduced. | Positive |
https://www.livemint.com/Money/JObOajeTJOY4eg2Z3sXslL/Rupee-logs-biggest-singleday-gain-in-5-years-to-close-at-72.html | Mumbai : The Indian rupee Friday clocked its biggest single-day gain in over five years, surging by 100 paise to close at 72.45 against the US dollar on easing crude oil prices and possibility that the US might grant waivers to India from sanctions on Iranian oil imports.
Besides, a bullish trend in the equity market and fresh foreign fund inflows provided support to the domestic currency, which has witnessed a massive 150 paise rise in the last two trading sessions. The domestic currency had Thursday gained 50 paise. At the Interbank Foreign Exchange (Forex) market, the domestic unit Friday opened on a higher note at 73.14, then gained further ground and touched an intra-day high of 72.43, a jump of 102 paise. It, however, closed at 72.45 against the greenback, showing a rise of 100 paise -- the best day for the Indian unit since September 2013. With crude oil prices constantly dipping, concerns over widening current account deficit have slightly eased, helping the rupee claw back some lost ground. The reports have suggested that the Trump administration is considering granting waivers to India and some other countries, which will allow these nations to continue buying oil from Iran, despite the renewal of US sanctions from next week.
The US had told various countries, including India, to cut oil imports from the Persian Gulf nation to “zero" by November 4 or face sanctions.
“Broad-based weakness in dollar along with fall in crude oil prices boosted the Indian rupee, which climbed 1.40 per cent to 72.44. Local currency had a single biggest day gain in five years amid improvement in macro environment. Foreign funds have turned buyer in domestic equity and debt market," an analyst said.
Brent crude, the international benchmark, was trading at USD 72.98 per barrel.
“Crude oil traded near seven-month lows pressured by higher output from major oil producers... Brent crude has corrected 17 per cent from its recent high of 86.74 registered on October 3," the analyst noted. Meanwhile, foreign funds on a net basis bought shares worth ₹ 348.75 crore from the capital markets Thursday, while domestic institutional investors sold shares worth ₹ 509.17 crore, provisional data showed.
Market benchmark Sensex soared almost 580 points to end at a one-month high of 35,011.65 Friday. The NSE Nifty leaped 172.55 points, or 1.66 per cent, to 10,553.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 72.8798 and for rupee/euro at 83.2292. The reference rate for rupee/British pound was fixed at 94.7530 and for rupee/100 Japanese yen at 64.47.
(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed)
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Topics | rupee gains 100 paise to close at 72.45 against the US dollar. rupee has seen 150 paise rise in last two trading sessions. rupee has seen a bullish trend in equity market and fresh foreign fund inflows. Sensex soared almost 580 points to end at a one-day high. a soaring rupee could help curb the u.s. dollar's soaring interest rates. | Positive |
https://www.financialexpress.com/industry/wipro-q1-net-profit-up-12-6-to-2390-crore/1647661/ | Bengaluru-based Wipro reported a 5.3% year-on-year increase in revenues to Rs 14,720 crore ($2.1 billion) for the quarter ended June 2019. The company’s adjusted dollar revenues grew 4.3% y-o-y to $2.03 billion. The company’s net profit for the quarter rose 12.6% y-o-y to Rs 2,390 crore ($346 million). The company expects to grow revenues between 0-2% in constant currency terms in the second quarter of FY20, going by current conditions in all the markets it operates in.
Ebitda margin stood at 18.4%, a 60 basis points decline from Q3FY19’s 19%. “Q1 is typically a weak quarter for us and we entered the quarter with macro uncertainties,” said Abidali Neemuchwala, chief executive officer, Wipro. Before the results, HDFC Securities had predicted the company to guide for revenue growth between 0-2% for Q2FY20. For the same quarter in FY19, the company had adjusted its margins after divestment of its data centre business. The share buyback plan, which was announced by the company’s board during last quarter’s result, is on track for the company.
Macro uncertainties continue to provide headwinds for Wipro, constituted by delay in project inception and customer decision making. Despite these, the company has witnessed three of its existing clients move up the ladder to $100 million bucket. There has been no new customer addition.
Revenues from digital practices contribute to over 37.4% of the overall revenue – the highest of all practices during the quarter. The q-o-q growth of digital stood at 5.6% and y-o-y growth at 34.6%. BSFI segment growth remained sequentially flat at 31.6% from last quarter’s 31.5%.
Younger business units like communications and technology showed sequential growth of 0.2% and 0.4%, respectively, but the y-o-y growth of technology unit fell to 13.0 % from 14.3% in Q1FY19. “Our health business unit faced political uncertainties in the west this quarter and manufacturing unit dropped to 7.9% from 8.4% year-on-year due to soft business conditions in Europe,” said Bhanumurthy, COO, Wipro.
The tech giant has ramped up local hiring to around 65% in the markets it operates in. There has been an influx of over 6,000 freshers globally with an aim to set teams in place to meet demands in automation and digital technology, for the ongoing financial year. The company’s attrition remained flat at 17.6%, comparable to last quarter. | the company's adjusted dollar revenues grew 4.3% y-o-y to $2.03 billion. net profit for the quarter rose 12.6% y-o-y to Rs 2,390 crore ($346 million) the company expects to grow revenues between 0-2% in constant currency terms in the second quarter of FY20. the company has witnessed three of its existing clients move up the ladder to $100 million bucket. | Positive |
https://www.financialexpress.com/market/dividend-stocks-with-high-yields-getting-attractive-amid-low-interest-rates-check-popular-stocks/2135300/ | Dividend yield stocks are looking to become more attractive as liquidity rises and real interest rates decline. Domestic brokerage and research firm ICICI Direct said that in the past, dividend stocks performed well during sustained periods of low real yields. The brokerage firm’s observation of rolling one-year returns indicates that bulk of the outperformance of Nifty Dividend Opportunities 50 index was between financial year 2010 and 2012 period when real yields remained negative persistently.
“Over the past one year, as interest rates continued to dip and inflation rose, real interest rate has dipped into negative territory which improves prospects for high dividend yield stocks,” ICICI Direct said in a recent note.
Dividends, buybacks to increase?
With low interest rates expected to stay for a few years, dividend stocks are better placed according to ICICI Direct. “Postponement of capex spending and improved balance sheet strength of India Inc. will allow higher dividend payment/buybacks in the near term,” the report said. In the last financial year capex of India Inc was at Rs 5.4 lakh crore against Rs 5.8 lakh crore in financial year 2019 while cash flow from operations improved to Rs 8.8 lakh crore. Private capex is expected to remain muted in the near term owing to macro challenges of weak demand and lower utilisation levels. However, improving cash flows will leave more space for dividends and buybacks in ICICI Direct’s view.
Dividend: Fixed income and inflation hedge
High dividend yield stocks provide not just a source of fixed income but also provide an added advantage of ‘inflation hedge, a characteristic that equity as an asset class carries. With interest rates low, dividend yield stocks have now scaled to the level of fixed income assets.
Highlighting the extra edge that dividend plays while investing, ICICI Direct said that Nifty price return CAGR has been 12.6% over the past 20 years, while total return, based on dividend reinvestment, has been 14.3%. “Rs 10 lakh invested in June 1999 in Nifty 50 index has turned into Rs 37 lakh solely on the back of reinvestment of dividends, while capital appreciation gain has turned into Rs 1.08 crore,” they said.
Marquee dividend stocks
Some of the marquee dividend plays in the listed space that ICICI Direct has mention in the report include Coal India with a dividend yield of 9.8%, Hindustan Zinc with 7.4% yield, ONGC and GAIL at 6.9% and 6.8%, respectively. ITC, Power Grid, IOCL, NMDC are other such plays. Among equity indices, the CPSE and the dividend opportunities 50 index have the highest dividend yields currently at 6% and 3.65%. | domestic brokerage firm ICICI Direct said dividend stocks performed well during sustained periods of low real yields. bulk of outperformance of Nifty Dividend Opportunities 50 index was between financial year 2010 and 2012 period.'real interest rate has dipped into negative territory which improves prospects for high dividend yield stocks,' ICICI Direct said. 'postponement of capex spending and improved balance sheet strength of India Inc. will allow higher dividend payment/buybacks in the near term' | Positive |
https://www.businesstoday.in/current/world/gold-worth-6-billion-discovered-in-turkey-mining-to-start-within-two--years/story/425995.html | Turkey has stumbled upon a huge gold deposit weighing as much as 99 tonnes, with valuation touted to be around $6 billion, more than the GDP of some countries.
As per the state-run news agency Anadolu, the deposit was discovered by Gubertas - a fertilizer manufacturing company - along with Fahrettin Poyraz, head of the country's Agricultural Credit Cooperatives.
After the news came out, shares of Gubertas surged 10 per cent on Borsa Istanbul - the Turkish stock exchange. Poyraz informed Anadolu that the first extraction of gold is to take place within two years, adding value to the Turkish economy.
Turkey has already broken its record in 2020 by producing a total of 38 tonnes of gold, while Energy Minister Faith Donmez had set an annual target for gold production of 100 tonnes earlier this year in September.
The value of the recently discovered gold deposit is estimated to be greater than the GDP of some countries. According to Worldometer, the GDP of Maldives is $4.87 billion, while that of Burundi is pegged at $3.17 billion. While this makes the gold deposit richer than these countries, others like Barbados, Guyana, Montenegro, and Mauritania have economies much smaller than $6 billion.
Another development involving the influx of funds in Turkey is the rehabilitation of the Syrian refugees in the country. The European Union (EU) is planning to inject about $590 million in cash in order to help more than 1.8 million refugees, as well as to educate more than 7 lakh children. The programs are being run by the Turkish Red Crescent in collaboration with UNICEF and the Red Cross.
Also Read: UAE Fatwa Council approves COVID-19 vaccines even with pork gelatin
Also Read: Centre launches competition for strengthening COVID-19 vaccine digital network | the gold deposit was discovered by a fertilizer manufacturing company. shares of the company have jumped 10 per cent on the stock exchange. the first extraction of gold is to take place within two years. the value of the gold deposit is estimated to be greater than the GDP of some countries. the european union is planning to inject about $590 million in cash to help more than 1.8 million refugees in the country. | Positive |
https://www.financialexpress.com/money/how-to-open-hdfc-securities-digidemat-and-trading-account/1979773/ | HDFC Bank Ltd has seen a surge in the number of applicants for its newly-launched Digmat-cum-Trading facility. The bank claims to have secured more than 15,000 customers in the first month of launch, mostly because people are practicing caution to prevent the spread of Covid-19.
The DigiDemat and Trading facility are being offered to select, existing customers of the bank, who are in partnership with HDFC Securities. The Digital Demat and Trading Account facility are available for Indian residents with single owner accounts with HDFC Bank.
S Sampathkumar, Group Head, Liabilities Products, HDFC Bank, said, “This is a complete seamless Digidemat and Trading account for existing customers of HDFC Bank. This will provide an easy and quick way to participate in capital markets by providing a complete online account opening process. It is simple, paperless, quick, and convenient.”
Here is how you can open the HDFC Securities DigiDemat & Trading account:
The selected account holders can register through the link shared with them and login to their account. The selected existing HDFC Bank customers can open a Demat account with HDFC Bank and Trading account with HDFC Securities using their Net-banking credentials. Next, the account holders have to complete their basic KYC and setting preferences. After that, the account holders will be asked for in-person video verification along with their Aadhaar-enabled e-signature. The opening of the Demat account takes about 5 minutes, whereas the opening of the trading account takes about 15 minutes. After account approval, the applicant would be able to start investing. Account-holders do not need any physical documents for the opening of the account.
Key Features of the Digital Demat account | the bank claims to have secured more than 15,000 customers in the first month of launch. the DigiDemat and Trading facility are available for existing customers. the opening of the Demat account takes about 5 minutes, whereas the opening of the trading account takes about 15 minutes. the bank is a partner of the swiss bank, which has a 'digital demat' facility. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/quantity-driven-china-beats-india-in-the-tech-knowhow-race/articleshow/64671813.cms | If you had compared India and China in the late 1980s, there would not have been much difference in their science and technology capabilities. In the early 1990s, China had started moving ahead, but the two countries were not too far apart in their preparations for the 21st century industries.But in the 1990s, China invested heavily in education and research and started moving ahead very quickly. It has continued this thrust ever since. Now the two are poles apart in science and technology infrastructure.China is nipping at the heels of the US, the world leader in science and technology. It has already caught up in quantity, though it is still some way behind in quality.India and China have brought different philosophies while investing in science and technology. Chinese leaders, many of whom are well-educated in science and engineering, decided that science and innovation should drive the Chinese economy Indian politicians, mostly without a scientific or technical background, had a different trajectory in mind for the country’s economic growth. China wanted to be the world leader in as many areas as possible, while India had no such overriding purpose.Here ET collects some data that shows how far apart the two countries are in their preparation for the knowledge industries of the future. Some of these statistics have be taken with a dose of scepticism, as China is driven by the aim of creating quantity.But the data clearly shows that China is now at least a decade ahead of India, and is moving further quickly. | in the early 1990s, China invested heavily in education and research. it started moving ahead very quickly and is now poles apart in science and technology infrastructure. china is nipping at the heels of the US, the world leader in science and technology. it has already caught up in quantity, though it is still some way behind in quality. chinese leaders decided that science and innovation should drive the country’s economic growth. | Positive |
https://www.livemint.com/Politics/CiHRs0sRZmj1hXgCKBrfUO/HULs-Sanjiv-Mehta-pitches-for-reducing-corporate-tax-rate.html | New Delhi: Ahead of the Union Budget, FMCG major Hindustan Unilever CMD Sanjiv Mehta Thursday pitched for reducing corporate tax rate and redressal of technical glitches and procedural matters of the goods and services tax (GST). He said that the taxation burden for multi-national corporations (MNCs) can be reduced by “bringing down their corporate tax rate at par with the rate applicable in neighbouring countries". While GST has proven to be a game changer and is positively impacting taxation practices, “transitional issues need to be rectified fast, covering both technical glitches and procedural matters," he added. He was speaking at CII’s national conference on ‘MNCs and India: Creating Mutual Value’.
In February this year, Finance Minister Arun Jaitley lowered corporate tax rate to 25 per cent for businesses with turnover up to ₹ 250 crore. However, for businesses with over ₹ 250 crore turnover, 30 per cent tax remains.
The minister will present the interim Budget for 2019-20 fiscal on February 1, 2019.
Mehta, who is also Chairman of CII National Committee on MNCs, said that restrictions on the royalties paid by Indian subsidiaries to their parent companies has been a major concern for MNCs in the recent times.
Market regulator Securities and Exchange Board of India (Sebi) has reduced the royalty payment to 2 per cent on listed companies, which is adversely affecting sentiments of Indian subsidiaries to list in the country’s stock exchanges, he said.
“The distinction created between listed and unlisted companies can discourage participation by foreign companies in the country, thereby adversely affecting transfer of advanced technology, research and development in India by the foreign companies," he added.
Further, he also suggested the government to relax local sourcing norms under single-brand retailing.
“Certain restrictive clauses like sourcing norms have undermined the realisation of full benefits of the measure," Mehta said, adding that there was a need for harmonisation of Indian standards in line with the global standards when it comes to the regulatory and policy environment in the context of MNCs.
Talking about intellectual property rights (IPR), he said, issues are being faced in the form of inadequate effective enforcement mechanism of rules and limited resources are leading to rising application backlog.
He said that India remains high on the global business radar and it is the right time for India to leverage upon it through a stable and progressive business environment.
“India has the potential to be the engine of growth for the global economy for years to come. If we maintain the momentum, we could be a USD 6-7 trillion economy by 2030, and if we bend the curve we could be a USD 10 trillion economy by 2030," he added.
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Topics | he said taxation burden for multinational corporations can be reduced by bringing down corporate tax rate at par with the rate applicable in neighbouring countries. he was speaking at CII's national conference on 'MNCs and India: Creating Mutual Value' in february, finance minister lowered corporate tax rate to 25 per cent for businesses with turnover up to 250 crore. | Positive |
http://www.moneycontrol.com/news/business/earnings/motilal-oswal-q3-net-up-66-at-rs-148-crore-2490519.html | otilal Oswal Financial Services today reported a 66 per cent surge in net profits at Rs 148 crore, for the three months ended December 31, the highest ever for the company in a third quarter.
The company's net profit stood at Rs 89 crore, for the October-December period of 2017-18.
The consolidated revenues for Motilal Oswal stood at Rs 736 crore for the quarter under review, up nearly 62 per cent from about Rs 456 crore in the same period year-ago, the company said in a statement.
"Our strategy to diversify our business model towards linear sources of earnings like asset management and housing finance continues to show results, with over half of the revenue pie now coming from these new businesses," Motilal Oswal Financial Services CMD Motilal Oswal said. "Even our traditional businesses saw strong uptick during the quarter by registering record revenues. With this strategy, we have achieved the highest ever quarterly revenue and profit during the third quarter of 2017-18," he added.
The company's capital markets business', which comprises of retail broking, institutional equities and investment banking, revenues were Rs 312 crore in the third quarter of the current fiscal, an 87 per cent rise from the same period year-ago.
Profits grew much faster at 92 per cent year-on-year and contributed about 38 per cent of net profits.
The asset management segment revenues rose by 93 per cent to Rs 169 crore in the period under review.
"The asset management business offers the highest scalability and operating leverage among all our businesses," the company said. | otilal Oswal Financial Services reports a 66 per cent surge in net profits. the company's net profit stood at Rs 89 crore, for the October-December period of 2017-18. the company's capital markets business revenues were Rs 312 crore in the third quarter. profits grew much faster at 92 per cent year-on-year and contributed about 38 per cent of net profits. | Positive |
https://economictimes.indiatimes.com/wealth/personal-finance-news/budget-2019-what-does-it-mean-for-the-individual-taxpayer/articleshow/70095492.cms | There are no revisions to the slab rates. However, individuals with taxable income exceeding INR 2 crore but upto INR 5 crore would be subject to a surcharge of 25 percent and those with taxable income of more than INR 5 crore would be subject to a surcharge of 37 percent of taxes. The surcharge rate applicable for these individuals earlier was only 15 percent.
For ease and convenience of taxpayers, the Government has proposed to allow interchangeability of PAN and Aadhaar. The Government has also proposed to consider issuing Aadhaar to Non-Resident Indians (NRI) who have Indian passports, after their arrival in India without waiting for the mandatory period of 180 days.
With a view to promote affordable homes, interest paid on housing loans borrowed between April 2019 and March 2020 for taxpayers who do not own a house already, would be eligible for a deduction of INR 1.5 lakh for purchase of the first house of the taxpayer, provided the stamp duty value of the house does not exceed INR 45 lakh. This deduction is over and above the deduction of INR 2 lakh available for interest on housing loan for self-occupied house.
In-order-to encourage purchase of electric vehicles, the Government has proposed a new deduction of up to INR 1.5 lakh for interest paid on loan taken for purchase of electric vehicles.
To promote digital payments and to discourage the practice of making business payments in cash, the Government has proposed a requirement for tax to be deducted at source at the rate of 2 percent on cash withdrawal exceeding INR 1 crore in a year from a bank account.
National Pension Scheme has been made more attractive now with a 60 percent tax exemption (in place of earlier 40 percent) at the time of withdrawal.
To encourage accuracy of income tax returns and ease of filing, pre-filled income-tax return forms, based on information collated from banks, stock exchanges, mutual funds, insurance companies, etc are proposed to be made available for filing by individuals.
Currently, an individual is required to furnish the return of income only if his total income exceeds the maximum amount not chargeable to tax, subject to certain exceptions. Therefore, a person entering into certain high value transactions is not required to furnish his return of income. In order to ensure that such persons do furnish their return of income, it has been proposed to make the filing of return of income mandatory for such persons.
Deposits in one or more current account exceeding INR 1 Crore; or
Expenditure incurred on foreign travel of more than INR 2 lakhs; or
Electricity expenditure exceeding INR 1 lakh; or
Satisfying other prescribed conditions
Presently, gifts (money paid and/or property transferred) made by a person resident in India to a person outside India are being reported as non-taxable in India, as the income does not accrue or arise in India. To ensure that such gifts made by residents are subject to tax in India, an amendment has been proposed to tax such gifts (made on or after July 5, 2019) in India in the hands of the recipients, subject to certain exceptions/ treaty reliefs if any.
As a paradigm shift in assessments, faceless e-assessment system is proposed to be introduced involving no human interface to eliminate undesirable practices in the conduct of assessments. Notices would be issued by a central cell, without disclosing the details of the tax officer or the taxpayer to each other.
The first Union Budget [The Finance (No.2) Bill, 2019] of the re-elected NDA Government was presented today. This was a crucial budget for the taxpayer, especially for the salaried class since the last major changes in personal taxes were made back in 2014.Let us look at the key personal tax proposals presented in the Union Budget 2019 Some of the new categories of taxpayers who are mandatorily required to file tax returns, would be tax payers who meet the below conditions during the previous year:The Budget has set a road map for the future by addressing important aspects such as providing housing to all, focus on the ease of compliance, digital economy and enhanced governance and compliance.(Views expressed are personal)(The writer is Tax Partner, People Advisory Services, EY India) | taxable income exceeding INR 2 crore but upto INR 5 crore would be subject to a surcharge of 37 percent of taxes. the government has proposed to allow interchangeability of PAN and Aadhaar. interest paid on housing loans borrowed between April 2019 and March 2020 would be eligible for a deduction of INR 1.5 lakh. to promote affordable homes, interest paid on loan taken for purchase of electric vehicles would be deducted. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/brave-new-world-heres-what-pe-valuations-say-about-the-market/articleshow/76366191.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 »
While not exactly a chart,
ET CONTRIBUTORS
A key reason the US middle & working classes have seen stagnant relative
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Let’s talk about
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Time for a new chart ET CONTRIBUTORS
Connect with Experts - Wealth creation made easy Ritesh Jain, a Dalal Street veteran, trend watcher and Global Macro Investor, captures global macro investment opportunities and economic, business and financial trends with charts and commentaries in this spaceWhile not exactly a chart, Russell Napier has changed his view and wrote an article titled "The dawning of age of inflation". He expects inflation to cross 4 per cent in the developed world by 2021.A key reason the US middle & working classes have seen stagnant relative real income growth over the past 45 years, in a single chart.Let’s talk about valuations . Forward price-to-earnings (P/E) sits at 22.4. Median P/E (my favorite indicator, which looks at actual trailing 12-month earnings) sits at 24.6. For comparison purposes, the 52-year average, call it “Fair Value,” is 17.3. That suggests the S&P 500 Index’s fair value is 2,134.06. More than 30 per cent below today’s level of 3,202. And it’s not just price relative to earnings. It’s price-to-sales, price-to-operating earnings, price-to-book. Price-to-everything is expensive. Here’s a look (red is bad):Time for a new chart
(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 at worldoutofwhack.com. he is also a 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 years of experience in the global macro investment space. | Positive |
https://www.moneycontrol.com/news/business/markets/sensex-jumps-over-600-points-nifty-closes-above-11400-4-factors-that-lifted-market-5821231.html | live bse live
nse live Volume Todays L/H More ×
Indian shares traded higher and closed in the green as the market gained strength on September 10 after witnessing consolidation in the last few sessions.
The BSE Sensex climbed 646.40 points or 1.69 percent to close at 38,840.32 and the Nifty50 jumped 171.30 points or 1.52 percent to end at 11,449.30.
The broader markets also gained momentum as the Nifty Midcap index was up 1.2 percent and smallcap rose 1.6 percent.
Here are the four key factors that are driving the market higher:
Reliance Industries
Reliance Industries, the country's largest listed company by market capitalisation, was the main driver of the rally. The stock shot up more than 7 percent to hit a record high of Rs 2,343.90 and RIL became the first company in India to hit a market capitalisation of $200 billion (Rs 14,85,893 crore).
The stock closed at Rs 2,314.65 on the BSE, up 7.1 percent.
After raising more than Rs 1.5 lakh crore via stake sale in Jio Platforms, billionaire Mukesh Ambani-owned company is now focussed on its retail business.
Private equity giant Silver Lake Partners will invest Rs 7,500 crore in the retail unit of India’s Reliance Industries Ltd (RIL) Reliance Retail Ventures, at an equity value of Rs 4.21 lakh crore.
Last month, Reliance Retail decided to acquire the retail and wholesale business as well as the logistics and warehousing business from the Future Group for Rs 24,713 crore.
Earlier this month, RIL said the Rs 25,215-crore investment by Brookfield Infrastructure and its institutional partners in RIL's Tower Infrastructure Trust had been completed.
Reliance Industries partly paid-up shares were locked in 10 percent upper circuit at Rs 1,394.55 per share on the BSE.
India-China border talks
The consolidation and correction in the last few sessions seem to have priced-in all India-China border standoff.
All eyes are on a meeting that India’s External Affairs Minister S Jaishankar will have with his Chinese counterpart Wang Yi later in the day as the troops of both the countries remain in a tense standoff in eastern Ladakh along the Line of Actual Control (LAC).
Also read: Rafale induction ceremony highlights: Rafales formally inducted into the Indian Air Force
The talks are expected to focus on dialling down the tensions, two days after the neighbours accused each other of firing in the air, the first time in 45 years that bullets have been fired along the LAC.
Banking & Financials
Banking & financials stocks were also on buyers' radar, with Nifty Bank and financial services indices rising 0.9 percent and 0.7 percent. respectively, amid hopes that lending activities after the end of six-month moratorium will turn strong in the coming weeks, which could support economic recovery.
Axis Bank, IndusInd Bank, SBI, PNB and ICICI Bank were leading with 1-3.5 percent gains.
"Banks were worried about moratorium-led NPAs, as the moratorium period is over, now they will have a clear idea on what is going wrong in their books. Getting clarity on likely losses was the biggest worry for the bankers," Satish Kumar, Head of Equities at Equirus Securities told Moneycontrol.
Technical View
The Nifty50 gained 1.5 percent and formed a bullish candle on the daily charts.
Experts expect the bullish momentum to continue in the coming days if the index sustains above 11,400 levels.
"We have kept above the 11,450 levels today. We need to see if we can get past this tomorrow as this is a crucial resistance level for the markets. If we are unable to go past this tomorrow, we could revisit the 11,200 levels. If we cross it, we could move higher as the bear trades would then be stopped out and the bulls would take over," Manish Hathiramani, Index Trader and Technical Analyst at Deen Dayal Investments told Moneycontrol.
Disclosure: Reliance Industries Ltd is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Moneycontrol. | the broader markets also gained momentum as the Nifty Midcap index was up 1.2 percent and smallcap rose 1.6 percent. the country's largest listed company by market capitalisation, reliance industries, was the main driver of the rally. the stock closed at Rs 2,314.65 on the BSE, up 7.1 percent. the country's largest listed company by market capitalisation, was the main driver of the rally. | Positive |
https://www.financialexpress.com/industry/electronic-waste-produced-every-year-weighs-more-than-all-airlines-ever-built-wef-report/1453636/ | Indicating a major health and environmental crisis, the amount of electronic waste produced every year is set to grow to 120 million tonnes by 2050 from 50 million tonnes currently — which already weighs more than all the commercial planes ever built, a report said.
In the report released here in collaboration with the UN-E-Waste Coalition, the World Economic Forum (WEF) said the value of electronic waste produced every year is a staggering USD 62 billion already, which is worth three times the total silver production. It also said there is 100 times more gold in a tonne of mobile phones than in a tonne of gold ore.
The report said the world is on the brink of a major health and environmental crisis, as the annual amount of electronic waste produced each year looks set to grow further to 120 million tonnes by 2050. With only 20 per cent of the electronics and plastics formally recycled each year, this looming health and environmental catastrophe also represent a unique USD 62 billion economic opportunity, the report said.
To safeguard the environment, protect human health and deliver sustainable, inclusive growth, the Nigerian government, Global Environment Facility (GEF) and UN Environment have joined Dell, HP, Microsoft and Philips to launch a USD 15 million investment to create a formal e-waste recycling industry in Nigeria. The partnership is convened on the World Economic Forum’s Platform for Accelerating the Circular Economy. Funding comprises a USD 2 million GEF investment, which will be leveraged for an additional USD 13 million private-sector co-financing.
With 100,000 people estimated to be informally working in the e-waste sector in Nigeria alone, the investment will not only unlock economic growth but also provide safe and decent employment for workers.
At a global level, seven UN entities have come together, supported by the WEF and the World Business Council for Sustainable Development to better address the e-waste challenge.
In the joint report, they called for a new vision for electronics based on the circular economy, and the need for collaboration with major brands, small and medium-sized enterprises, academia, trade unions, civil society and associations in a deliberative process to change the entire system.
Another report by the WEF in collaboration with Accenture Strategy also outlined a future in which Fourth Industrial Revolution technologies provide a tool to unlock the value of e-waste. This visualises an “internet of materials” that could lead to better product tracking, take-back and recycling. | the amount of electronic waste produced every year is set to grow to 120 million tonnes by 2050 from 50 million tonnes currently. the value of electronic waste produced every year is a staggering USD 62 billion already, which is worth three times the total silver production. there is 100 times more gold in a tonne of mobile phones than in a tonne of gold ore. | 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.businesstoday.in/current/economy-politics/govt-masterstroke-14-mega-employment-zones-expected-to-create-10-million-jobs/story/290486.html | The Modi government has long been criticised for jobless growth, especially after making it a key electoral promise back in 2014. But it hopes to address the issue with its ambitious plans for 14 mega national employment zones, which has finally moved a step forward.
The project appraisal and management division of think tank NITI Aayog has given its go-ahead to the Rs 1 lakh crore proposal of the shipping ministry that is expected to provide direct and indirect jobs to one crore youth over the next five years, The Economic Times reported. The proposal envisages setting up 14 national employment zones in the coastal states under the special purpose vehicle route, and is expected to be rolled out ahead of general elections next year, when employment generation is sure to emerge as a key issue.
The project will now be taken up by the Cabinet for consideration, following which bids will be invited from manufacturers to set up bases in the one-of-its-kind mega zones.
The employment zones will reportedly enjoy fiscal and non-fiscal incentives like tax holidays, capital subsidy and single-window clearance among others, linked directly to the number of jobs created by firms willing to set up manufacturing bases in these zones.
"These zones will have 35 industrial clusters across sectors like food, cement, furniture and electronics besides traditional labour intensive sectors like garments, leather and gems and jewellery," a source told the daily previously.
As per initial estimates, setting up the requisite infrastructure in these zones would require an investment of Rs 1 lakh crore, which will be shared by the Centre and states. In addition, the identified coastal states will reportedly provide at least 2,000 acres of contiguous land for setting up the employment zones. Going forward, India may also seek funding from multilateral agencies for this massive project since the zones are expected to attract an investment of up to Rs 4 lakh crore.
The 14 proposed sites include Kachchh and Suryapur in Gujarat, Malabar in Kerala, Dakshin Kanara in Karnataka, Kalinga in Odisha, Gaud in West Bengal, and Poompuhar in Tamil Nadu.
An important advantage of locating the zones near the coast is that they are likely to attract large firms interested in serving the export markets. Granting infrastructure status to these employment zones will further help companies flocking in get long-term easy finance, including cheaper foreign currency funding, to set up bases and expand their operations.
In a written reply to the Lok Sabha in February, Union Minister of State for Shipping and Finance Pon. Radhakrishnan, had said that 14 Coastal Economic Zones (CEZs) had been identified as part of the National Perspective Plan under the Sagarmala Programme. The idea was to promote port-led industrialisation, thereby giving a boost to the Make in India initiative. Incidentally, a significant improvement in the parameters of 'trading across borders' under the government's Sagarmala programme helped India take a huge leap of 23 ranks in the World Bank's latest 'Ease of Doing Business' report, climbing the charts to the 77th spot.
Edited by Sushmita Agarwal | the shipping ministry has approved a plan for 14 mega national employment zones. the zones are expected to provide direct and indirect jobs to one crore youth. the government has long been criticised for jobless growth. the zone is expected to be rolled out ahead of general elections next year. a bid will be invited from manufacturers to set up bases in the mega zones. | Positive |
https://www.moneycontrol.com/news/business/markets/sensex-rallies-305-pts-to-close-above-36000-5-factors-driving-market-uptrend-2691251.html | The Nifty after falling more than 10 percent from its record highs has showed a gradual rebound of more than 9 percent. It is currently trading above 10,900 levels after hitting a 2018 low of 9,998.05 in March.
The 30-share BSE Sensex rallied 304.90 points or 0.85 percent to close at 36239.62 and the 50-share NSE Nifty gained 94.40 points or 0.87 percent at 10,947.30.
Experts said the market has taken all negatives into its stride: global trade tensions, carnage in mid and smallcaps, interest rate hike concerns, et al.
"The market is trading rock steady right now despite rising oil prices and global trade war tensions. Some investors were a little bit circumspect after the stellar rally in 2017. I am not bearish right now, but maintain a selectively bullish bias," said Dipen Sheth of HDFC Securities.
However, Vivek Ranjan Misra, Head-Fundamental Research, Karvy Stock Broking, said the Nifty is currently trading at 12-month forward price-to-earnings ratio of 18.3 times, which can hardly be described as ‘cheap’.
Here are five factors that have been driving this rally:
Global trade tensions:Last Friday, US imposed tariffs on $34 billion Chinese goods. China immediately retaliating with duties on the same amount of US products. Experts said that concerns over a looming trade war that has dominated headlines for the past one month seem to have eased for the time being and is completely priced in. "That is driving the relief rally or recovery in global markets."
Corporate earningsGlobally, investors have shifted their focus from trade tensions to June earnings. Experts said hopes of a major earnings recovery in the second half of FY19 is driving the market rally.
“We have seen seeing a significant improvement in the demand environment over the last 4 quarters, which is evident from the revenue growth of Sensex companies, up 10 percent year-on-year compared to average growth of 2 percent YoY over the past 12 quarters,” ICICIDirect said in a note.
It expects revenue growth to further accelerate to 15 percent YoY in Q1 FY19e, given the broad-based pick-up across sectors, except telecom. "Going forward, with much of the asset quality pain already recorded, bankruptcy resolutions underway in the banking space, firm rural demand and pick-up in industrial activity, we expect earnings to stage an impressive recovery, growing in excess of 20 percent CAGR over FY18-20e,” it stated.
Have mid- and smallcaps bottomed out?The carnage in mid-and smallcaps was the major cause for concern. Small and midcap indices have corrected by around 25-30 percent, while some stocks have plunged over 50 percent. But they seem to be nearing their bottom, Vivek Ranjan Misra, Head-Fundamental Research, Karvy Stock Broking said.
Nandish Shah, Technical & Derivatives Analyst at HDFC Securities, seconded Misra. "Though the positional set-up for the midcap and smallcap indices is still bearish, with lower tops and bottoms, both indices seem to have reached the oversold zone, which could trigger a relief or pullback rally in coming days," he explained.
Stability in the rupee and crudeDepreciation in the rupee versus the dollar led to a correction in the market, but that seems to have stabilised now. The Indian unit touched an all-time low of 69.09 against the dollar in June, but since then it has been trading in a range of 68-69.
"The rupee depreciation should be seen largely in the context of depreciation of emerging markets (EMs) and strengthening of the dollar. This is on account of higher US rates. A few additional factors are driving the trend, the first is the risk of a widening current account deficit on account of oil prices. Secondly, with general elections approaching political risk is rising," Vivek Ranjan Misra said.
"While a big part of the move is probably done, expect the currency markets to remain weak, he added.
Technical outlookThe Nifty reclaimed the 10,900 mark for the first time since February 1, which means it took more than 5 months to hit that level again. It also surpassed its near term resistance level of 10,920 today and hit an intraday high of 10,922.30.
Technically, this indicates that the upward move could continue if the index holds around 10,900 levels for few more days.
"The Nifty managed to close above its crucial resistance level of 10,800 on Monday, derived from the downward sloping trend line adjoining the all-time high of 11,171 (January 29) and the intermediate top of 10,929 (May 15), indicating a bullish trend reversal," Shah said.
He further said the index is comfortably trading above its 20, 50, 100 and 200-day daily moving average, which indicates that the trend is bullish for the short to medium term. "As far as supports are concerned, immediate support is seen at 10,700, followed by far one at 10,550." | the 30-share BSE Sensex rallied 304.90 points or 0.85 percent to close at 36239.62. the 50-share NSE Nifty gained 94.40 points or 0.87 percent at 10,947.30. experts said the market has taken all negatives into its stride. a looming trade war that has dominated headlines for the past one month seem to have eased for the time being. | Positive |
https://www.livemint.com/Opinion/ksd78pJZYXxHCSp2Bi9LwK/How-Spotify-is-shaping-our-tastes-and-purchases.html | New Delhi: Music streaming platforms have an extraordinary influence on the music choices of consumers, determining which songs and artists tend to be more successful than others, shows a new National Bureau of Economic Research (NBER) working paper by Luis Aguiar of the European Commission’s Joint Research Centre and Joel Waldfogel of the University of Minnesota. Analyzing data for 2016 and 2017 from Spotify—one of the world’s largest music streaming firms—the authors show that being placed on the day’s top songs list (Today’s Top Hits) led to 20 million additional streams, which translates to $116,000 and $163,000 in additional revenue, respectively, from Spotify alone. Playlists also affect the success of new songs and new artists, the study shows. Getting on the top of the New Music Friday playlist in the US is worth roughly 14 million streams ($84,000-$117,000). The major global lists tend to promote major-label and US-origin music, while the New Music Friday lists provide heavier coverage of independent and domestic music, the authors found.
Given the growing power of platform markets such as Spotify, the authors argue for greater regulatory scrutiny over how such platforms exercise their power.
Also Read: Platforms, Promotion, and Product Discovery: Evidence from Spotify Playlists
Being uprooted from one’s homeland leads people to place greater emphasis on human capital investment than on investments in physical capital or real estate, shows a recent study by Sascha O. Becker of the University of Warwick and co-authors. They analyze the education levels and investment behaviour of Polish people who were forced to migrate in the aftermath of World War II, when Poland’s frontiers were redrawn. It is found that the loss of physical possessions during displacement led to a shift in preferences towards “mobile assets" such as education. Consequently, descendants of forced migrants fared better than other Poles in terms of years of schooling, though no such differences existed before the World War and displacement. The effect is seen to persist over three generations. The authors also find that forced migration acts as a stronger push for investment in human capital compared to voluntary migration.
Also Read: Forced Migration and Human Capital: Evidence from Post-WWII Population Transfers
Voluntary migration and the associated remittances back home can provide insurance to the poor during times of adversity, shows an IMF working paper by economists Zsoka Koczan and Franz Loyola. They analyzed the remittances inflow in Mexico during the Peso crisis in 1994 and the global financial crisis in 2008. They found that poorer households often saw a spurt in remittances during crises, with the effect more pronounced during the 2008 crisis. Further analysis reveals that remittances helped reduce income inequality in Mexico.
Also Read: How Do Migration and Remittances Affect Inequality? A Case Study of Mexico
The drivers of increasing carbon dioxide (CO2) emissions from richer countries and poorer countries remain very different, according to a World Bank report by Kangyin Dong, PhD student at Rutgers University, New Jersey, and co-authors. Their analysis of emissions between 1980 and 2015 shows that economic growth led to higher emissions from richer countries, while population growth is the main reason for emissions in poorer countries. CO2 emissions increased by more than 80% during these 35 years, with more than 70% of the rise being contributed by upper-middle-income countries. However, the rise in emissions was limited to some extent thanks to improved energy efficiency.
Also Read: Are Driving Forces of CO2 Emissions Different Across Countries? Insights from Identity and Econometric Analyses
Economics Digest runs weekly, and features interesting reads from the world of economics.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | a new NBER working paper shows that music streaming platforms have an extraordinary influence on the music choices of consumers. being placed on the day’s top songs list led to 20 million additional streams, which translates to $116,000 and $163,000 in additional revenue. Getting on the top of the new music Friday playlist in the us is worth roughly 14 million streams ($84,000-$117,000) | Positive |
https://www.moneycontrol.com/news/business/stocks-movement-to-hinge-on-macro-data-oil-foreign-fund-inflows-this-week-analysts-3605971.html | In the absence of any immediate key triggers, the domestic equity market would be guided by macro-economic data, crude oil prices, foreign fund inflows and currency movement in this holiday-shortened week, according to analysts. The market remained closed on Monday on account of "Maha Shivratri".
Last week, volatility erupted on domestic bourses after the Indian Air Force targeted Pakistan-based terror camps, leading to days-long geo-political tensions in the region. But investors now can heave a sigh of relief amid subsiding of skirmishes on the border between the two nations..
"Market is likely to trade with a positive bias on account of ease in border tensions and expectation of the US-China trade agreement," said Vinod Nair, head of research, Geojit Financial Services.
Also, crude oil, foreign fund inflows and currency movement would be actively tracked by the investors, they added.
Data for the services sector is due on Tuesday which would also influence trading sentiment this week.
"Relative calm has returned to markets as cross-border tensions have eased and robust trends are coming visible in the data on credit growth, manufacturing activity, new orders and employment. The market will look past the weak GDP print and focus on the high frequency indicators which are suggesting that the Indian economy is demonstrating signs of a pickup in growth," Sunil Sharma, chief investment officer, Sanctum Wealth Management said.
Foreign investors, a main driver of the Indian equity market, poured in close to Rs 17,220 crore on a net basis into Indian equities in February this year, the highest since November 2017.
Meanwhile, over the last week, the BSE Sensex rose 192.33 points, or 0.57 per cent. | the market remains closed on Monday on account of "Maha Shivratri" last week, volatility erupted after the Indian Air Force targeted Pakistan-based terror camps. the market is likely to trade with a positive bias on account of ease in border tensions. data for the services sector is due on Tuesday which would also influence trading sentiment. meanwhile, over the last week, the BSE Sensex rose 192.33 points, or 0.57 per cent. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/third-tranche-of-economic-stimulus-will-help-rural-economy-boost-farmers-income-pm-modi/articleshow/75765701.cms | New Delhi: Prime Minister Narendra Modi on Friday said the third tranche of economic stimulus announced by his government will help rural economy and boost farmers' income."I welcome today's measures announced by FM @nsitharaman," he wrote on Twitter.He said the measures will help the rural economy, hardworking farmers, fishermen, the animal husbandry and dairy sectors.In the third tranche of an overall package of Rs 20 lakh crore to deal with the economic fallout of the COVID-19 pandemic, Finance Minister Nirmala Sitharaman on Friday announced a slew of measures for agriculture sector, including a Rs 1.63 lakh crore outlay, and amending the stringent Essential Commodities Act to remove cereals, edible oil, oilseeds, pulses, onions and potato from its purview.Modi also said he specially welcomes reform initiatives in agriculture, which will boost income of farmers.Earlier this week, Prime Minister Modi announced a cumulative package of Rs 20 lakh crore, nearly 10 per cent of GDP, to provide relief to various segments of the economy battered by the nationwide lockdown in the wake of the coronavirus pandemic.It includes a Rs 1.7 lakh crore package, including free foodgrains and cash to poor for three months announced in March, and Rs 5.6 lakh crore stimulus provided through various monetary policy measures by the Reserve Bank of India (RBI).Of the remaining amount, the government in two tranches over the last two days announced a cumulative package of Rs 9.1 lakh crore. It was largely credit lines to smaller firms, concessional credit to farmers and support to shadow banks and electricity distributors. | finance minister announces slew of measures for agriculture sector. he also amends essential commodities act to remove cereals, edible oil, oilseeds, pulses. prime minister says measures will help rural economy and boost farmers' income. he says he particularly welcomes reform initiatives in agriculture. Earlier this week, he announced a cumulative package of Rs 20 lakh crore. | Positive |
https://www.businesstoday.in/opinion/columns/unfolding-india-luxury-market-in-2018/story/271418.html | Today, the luxury market in India garners huge attention as most of the global luxury brands have already arrived or are expected to enter. Luxury retailers have realized that India is one of the world's most vibrant, diverse and challenging markets for brands that want to capture this market. Success of luxury brands is mainly determined by their ability to understand the complexities of Indian market, to innovate and tweak their strategies to provide affluent consumers unique and bespoke brand experience. India is a distinctive and multifaceted market and reveals a pot-pourri of cultures, customs, and history. Chadha and Husband in their book on 'Cult of Luxury Brands: Inside Asia's Love Affair with Luxury' described that "each country has its own endearing eccentricities that make it unique". Luxury retailers need to understand following five unique key characteristics to serve Indian market well.
Evolving Indian market
India is still in nascent stage of its development as a luxury retail market. There have been up and down trends in last 10 years in luxury sector. Because of these variations, it's getting very complicated to precisely judge and gauge the luxury market. While India is visualized as an upcoming market as there is lot of potential, there are also people who believe that the potential of Indian market has been overrated. However, positive thing is size of the market, which, in itself makes it very exciting for people to sit in long term. The top-selling items in the luxury market are watches, automobile, real estate, fashion accessories, handbags, super premium beauty/personal care products, luxury electronic gadgets, shoes and apparel.
Regulations
Since November 2016 there has been introduction of several cash related restrictions which made an impact on luxury sector- first demonetization, then the 2 lakh limit, after that PAN Card business and the last of them was the GST implementation. Though these policies have initially obstructed the growth of Indian luxury sector but it is believed that these changes may be favourable in the long term. Recently, government has approved 100% FDI under the automatic route for single-brand retail trading and also eased the mandatory local sourcing norms. This would provide greater flexibility to the global retail brands and increased consumer access to global brands.
Diverse characteristics of Indian consumer
Indian consumers are very different from a consumer in China or the West. Indians culturally are value conscious and always look for a good bargain. People always seek value and search for information regarding at what price they can get brands internationally. As import duty is very high, consumers often find it cheaper to purchase from Singapore, Dubai or London. Consumers are ready to experiment; they have become bold. It's not conventional pattern of buying anymore. People are ready to experiment with colours, styling, irrespective of age. Consumers are brand conscious and logo-centric and logo has to be shown well. For men, shoes with prominent logo sell more in India. Women shoes do not sell well because they don't see value. However, women buy sunglasses and handbags which are more visible. People like to show-off. Indian buyers give a huge importance to perception and value. Quality and craftsmanship is a selling point but not decider point for Indians, it is prestige that people associate with brand that they are paying for and therefore more than anything else it is perception of the brand in the country that is either making a brand successful or is creating struggle.
Great demand for affordable luxury brands
Affordable luxury brands like Michael Kors, Kate Spade, Coach and Charles & Keith have been successful in capturing the hearts of young aspirational Indian buyers. These international brands give an option to the brand-conscious Indian shoppers to buy status symbols at a much lower prices than the average luxury brand. According to Euromonitor International, this segment is rapidly growing at the rate of 40% per annum, outpacing rest of the segments.
Luxury space constraint
Real estate is heavily regulated in India; consequently luxury brands generally launch stores in luxury malls or hotels, through joint ventures with local distributors. Presently, there are very few luxury malls in India which cater to luxury brands. In India, luxury retailing is confined to the three metro cities- Mumbai, Delhi and Bangalore. Tier 2 and 3 cities, with large populations and growing wealth are not catered too well. But retailers have to realize that it is not only metros where people have money or purchasing power, even small cities clients also generate revenues. There is no high street for luxury brands in India. All existing high streets are very cluttered and over-crowded and hence, do not provide a suitable ambience that luxury retail demands. In addition, the cost of setting up luxury stores in high streets is very high which dissuade the retailers to open stores in such areas.
Luxury players need to understand that Indian market has some distinct characteristics and in such an environment they have to operate very cautiously and selectively to create value for Indian consumers. Failure to recognize these variations in terms of their levels of luxury addiction, and consumer attitudes for luxury brands can detach retailers to understand consumer behaviour of luxury buyers.
(Dr. Sita Mishra is Associate Prof. (Marketing), Institute of Management Technology, Ghaziabad. Dr. Sheetal Jain is Founder & CEO Luxe Analytics.) | luxury retailers have realized that india is one of the world's most vibrant markets. success of luxury brands is determined by their ability to understand the complexities of Indian market. top-selling items in the luxury market are watches, automobile, real estate, fashion accessories, handbags. government has approved 100% FDI under the automatic route for single-brand retail trading. | Positive |
https://www.moneycontrol.com/news/business/markets/budget-2019-stt-securities-transaction-tax-4154981.html | Representative image
In a relief to traders, Finance Minister Nirmala Sitharaman on July 5 proposed to restrict Security Transaction Tax or STT to the difference between settlement and strike price in case of exercise of options.
This change, however, will not affect the levying of STT on any other transaction on the exchanges.
“Essentially what it means is that it will result in lesser tax for equity derivatives option traders. The settlement price is the average closing of the underlying on the day of expiry. The strike price is the level of underlying for which the Call or Put option is bought,” Jayant Manglik, President - Retail Distribution, Religare Broking Ltd told Moneycontrol.
“It means that now the difference between strike and settlement will be calculated and STT will be levied on just that, a change from the previous method when STT was calculated on the entire settlement price,” he said.
Sale of an option in securities attract STT of 0.05 percent for the seller while sale of an option in securities where the option is exercised by the purchaser is 0.125 percent, and sale of a future contract in securities attract a STT of 0.01 percent.
“The STT change is a big relief to options traders as the STT charge will no more be made on the value of the contract but on the difference between the strike price and the market price only,” Rohit Srivastava, Fund Manager - PMS, Sharekhan by BNP Paribas told Moneycontrol.
“For options that close in the money, it would not force traders to square up in the last hour of trading as was the case earlier. Most traders would try squaring up to avoid the higher STT that made it expensive to hold onto a position that was in the money ahead of expiry. Now the cost is not restrictive and once can allow it to expire in the money to lock in gains,” he said.
Amit Gupta, CEO and Co-founder TradingBells told Moneycontrol that “This is a huge relief to the markets. STT levy has been streamlined. That's a relief since now traders won't have to be worried about compulsorily squaring off in-the-money options before expiry,” he added. | Finance minister Nirmala Sitharaman proposes to restrict security transaction tax. tax will be levied on difference between settlement and strike price. sale of option in securities attracts 0.05 percent for the seller. amit gupta, CEO and co-founder tradingbells says it is a "huge relief" to the markets. | 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://www.moneycontrol.com/news/business/union-budget-is-growth-oriented-positive-says-bse-md-ashishkumar-chauhan-4176871.html | The 10 most valued domestic companies together added a whopping Rs 4,04,068.05 crore in market valuation last week, with RIL and HDFC Bank leading the gains. Here are the top 10 firms according to their market capitalisation for the week ended April 9:
The Union Budget for 2019-20 is growth-oriented, uses a variety of methods to bolster investment cycle led by government spending and overall is positive, BSE MD & CEO Ashishkumar Chauhan said.
The budget has outlined several new reform initiatives like big privatisation push, relaxation of norms for foreign portfolio investors, further liberalisation of foreign direct investment (FDI) policy, a new policy on rental housing and most importantly, incentives for faster adoption of next generation technologies such as electric vehicles, he said.
In a report titled "Union Budget 2019 - A Blueprint for a USD 5 trillion economy", Chauhan said, "The Budget advocates policies via four pillars of thrust that can push the Indian economy to a level of USD 5 trillion - in sync with Prime Minister Modi's vision."
The first continues to focus on increasing investment led by government spending. The budget emphasises on removing critical bottlenecks that hinder the growth of the economy in the second pillar of growth, he said.
The primary challenge facing the government is jobs, and the third pillar focuses on job creation and type of jobs for the future.
In the fourth pillar, the Finance Minister rolled out number of steps to boost core areas such as agriculture, healthcare, education, social welfare and rural development, he added.
A number of measures for capital markets and IFSC, in consultations with regulators are also proposed.
"Overall, this is a positive budget, with continued focus on fiscal prudence, boosting infrastructure, augmenting MSME's and NBFC's, improving skill development and focus on next-gen technologies," he added.
According to Chauhan, the government in its earlier term was largely focused on repairing the stressed banking system and undertaking structural economic resets.
In this term, the expectation from the government was to propel the economy and break away from the barriers holding it back.
"In this regard, the finance minister, in her maiden speech, has delivered a bold budget. The budget is growth oriented, spurs private investment, keeps government's fiscal consolidation track record intact and uses a variety of methods to bolster the investment cycle led by government spending," Chauhan added. | the 10 most valued domestic companies added a whopping Rs 4,04,068.05 crore in market valuation last week. the budget has outlined several new reform initiatives like big privatisation push, relaxation of norms for foreign portfolio investors. the government has also rolled out number of steps to boost core areas such as agriculture, healthcare, education, social welfare and rural development. | Positive |
https://www.moneycontrol.com/news/business/markets/wall-street-climbs-on-solid-jobs-data-trade-hopes-dow-jones-rallies-over-300-pts-4707991.html | Wall Street ended solidly higher on Friday as a strong jobs report and optimism about US-China trade negotiations ahead of an upcoming deadline helped stoke investor risk appetite.
All three major US stock indexes gained ground, hovering within 1 percent of record highs set last week.
But as a tumultuous week of contradictory trade news and mixed economic data drew to a close, only the S&P 500 posted a weekly gain. The Dow and the Nasdaq ended the session down from last Friday's close.
The US economy added 2,66,000 jobs in November, the largest increase in 10 months, according to the Labor Department, blowing past analyst estimates. The unemployment rate edged down to 3.5 percent.
"This type of report shows underlying economic strength, and it gives corporate management confidence in the strength of the economy," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York. "Primarily because of (trade negotiations), there's been a lot of uncertainty with management."
Regarding trade, White House economic adviser Larry Kudlow said that while the December 15 remains the date when the next round of tariffs on Chinese goods will take effect, "the reality is constructive talks, almost daily talks; we are, in fact, close."
"You have two very tough negotiators and a lot of tough issues to be agreed on," Ghriskey added. "But, based on what we're hearing from serious sources, it certainly appears we will be seeing some kind of trade deal."
US Treasury yields rose after the strong employment report, and bank stocks had their best day in over a month, rising 1.6 percent.
The Dow Jones Industrial Average rose 337.27 points, or 1.22 percent, to 28,015.06, the S&P 500 gained 28.48 points, or 0.91 percent, to 3,145.91 and the Nasdaq Composite added 85.83 points, or 1 percent, to 8,656.53.
Of the 11 major sectors of the S&P 500, all but utilities closed in positive territory, with energy , financials and trade-sensitive industrials enjoying the largest percentage gains.
Energy stocks were buoyed by a 1.1 percent rise in crude prices following an agreement between OPEC and its allies to extend output cuts through 2020.
Industrials had their best day in over a month, rising 1.3 percent.
Kudlow's comments also lifted tariff-vulnerable chip stocks, sending the Philadelphia Semiconductor index up 1.6 percent.
Shares of cosmetics retailer Ulta Beauty Inc jumped 11.1 percent, the best performer in the S&P 500, after beating quarterly profit expectations.
Tesla Inc rose 1.7 percent after revealing it would receive state subsidies for its Chinese-built Model 3 cars.
3M Co advanced 4.3 percent after Bloomberg reported the company was exploring a sale of its drug delivery systems business, which could fetch about $1 billion.
Advancing issues outnumbered declining ones on the NYSE by a 2.93-to-1 ratio; on Nasdaq, a 2.27-to-1 ratio favoured advancers.
The S&P 500 posted 54 new 52-week highs and no new lows; the Nasdaq Composite recorded 124 new highs and 45 new lows.
Volume on US exchanges was 6.64 billion shares, compared with the 6.65 billion-share average over the last 20 trading days. | all three major US stock indexes gain ground, hovering within 1 percent of record highs. but only the S&P 500 posts a weekly gain. the economy added 2,66,000 jobs in November, the largest increase in 10 months. bank stocks have their best day in over a month, rising 1.6 percent. a strong jobs report and optimism about trade negotiations helped stoke investor risk appetite. | Positive |
https://www.moneycontrol.com/news/business/economy/psbs-sanctioned-loans-worth-rs-5-66-lakh-crore-in-march-april-economy-poised-to-recover-fm-nirmala-sitharaman-5238401.html | Finance Minister Nirmala Sitharaman on May 7 said that public sector banks (PSBs) sanctioned loans worth Rs 5.66 lakh crore for more than 41.81 lakh accounts, during March-April 2020. She noted that these borrowers hail from a variety of sectors like micro, small and medium enterprises (MSMEs), retail, agriculture and corporate, waiting for disbursal soon after the lockdown is lifted.
The finance minister, who took to Twitter earlier today, said that the economy is poised to recover.
During March-April 2020, PSBs sanctioned loans worth Rs 5.66 lakh cr for more than 41.81 lakh accounts. These borrowers are from MSME, Retail, Agriculture & Corporate sectors, waiting for disbursal soon after #lockdown lifts. Economy poised to recover! @FinMinIndia @DFS_India
— NSitharamanOffice (@nsitharamanoffc) May 7, 2020
Sitharaman said, "For MSMEs and others, pre-approved Emergency credit lines & working capital enhancements being prioritised by PSBs. More than 27 lakh customers contacted from March 20 and 2.37 lakh cases sanctioned loans worth Rs. 26,500 cr. A work in progress."
Adding that the PSBs complemented the Reserve Bank of India (RBI) on loan moratorium, FM Sitharman said that the government is ensuring responsible banking amid the COVID-19 pandemic-led lockdown.
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
"Their effective communication & proactive actions ensured that over 3.2 cr. a/c availed 3-month moratorium. Quick query redressals allayed customer concerns," Sitharaman said.
On the subject of credit flow, Sitharaman added, "Sustained credit flow to NBFCs & HFCs in COVID19! PSBs sanctioned loans worth Rs. 77,383 cr. b/w Mar 1-May 4. Inclusive of TLTRO funds, extended total financing of Rs. 1.08 lakh crore, ensuring business stability & continuity going forward." | finance minister says loans sanctioned for 41.81 lakh accounts during march-April 2020. borrowers hail from micro, small and medium enterprises (MSMEs), retail, agriculture and corporate. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. | Positive |
https://www.financialexpress.com/industry/banking-finance/icra-lowers-loan-recast-estimates-to-2-5-4-5-of-advances-from-5-8/2159390/ | Net non-performing assets (NPAs) and credit provisions for banks will trend lower in FY22 as they have reported strong collections on their loan portfolio. Loan restructuring requests have been much lower than previously estimated as a result of a sharper-than-expected improvement in economic activities as well liquidity support through the emergency credit line guarantee scheme, rating agency Icra said on Monday. Accordingly, it has revised its loan restructuring estimates downward to 2.5-4.5% of advances, against 5-8% estimated earlier.
Anil Gupta, sector head – financial sector ratings, Icra Ratings, said with expectations of sustained collections and lower restructuring, asset quality was expected to improve further, with the net NPA ratio declining to 2.4-2.6% by March 2022. “This will lead to lower credit provisions and better profitability in FY2022,” he said.
The agency said improved asset quality and consequently lower credit provisions could drive better profitability for banks, provide an impetus to lenders and rejuvenate their lending decisions. Low interest rates, improved business volumes, better job prospects and income levels could also stimulate credit demand next year. This, coupled with better competitive positioning of banks vis-a-vis other lenders driven by a steep decline in cost of deposits, could improve bank credit growth to 6-7% in FY22 from an estimated 3.9-5.2% in FY21 and 6.1% in FY20.
Even as the SC’s final order on asset classification is awaited, Icra expects the gross NPA and net NPA ratios for banks to rise to 10.1-10.6% and 3.1-3.2% respectively, by March 2021. The corresponding figures as of September 2020 were 7.9% and 2.2% respectively. Icra expects the credit provisions to decline to 1.8-2.4% of advances during FY22 from an estimate of 2.2-3.1% in FY21 and 3.1% in FY20, which will lead to improvement in return on equity (RoE) for banks.
Public sector banks are set to break-even after six consecutive years (FY16- FY21) of losses and generate an RoE of 0-5.4% for FY22 (-2.3%/ 3.7% for FY21 and -6.5% for FY20). The RoE for private banks is also estimated to improve to 9.5-10.5% in FY22 (2-7.5% in FY21 and 6.5% for FY20).
The capital position for large private banks is strong and they can withstand the stress case scenario for asset quality after having raised Rs 54,400 crore of capital during April-December of FY21. With large capital raises and expectations of improved profitability, these banks are also well placed to exercise call options on Rs 26,000 crore worth of additional tier-I (AT-I) bonds falling due in FY22 and FY23 without a significant impact on their capital. Icra expects the fresh capital requirement for private banks to be limited to less than Rs 10,000 crore till FY22. The requirement could come from a few mid-sized and small private banks.
The AT-I bond market for public sector banks has seen a revival in FY21. In addition, a few public sector banks have also been able to raise equity capital aggregating Rs 7,500 crore from the markets after a gap of almost three years. This, coupled with the government’s budgeted equity capital infusion of Rs 20,000 crore, should suffice for FY21, Icra said. Gupta further said public sector banks would need to raise additional capital of up to Rs 43,000 crore next year as they have call options falling due on AT-I bonds totalling Rs 23,300 crore during FY22.
“Capital will also be required to support credit growth as their internal capital generation could remain weak even next year. The ability of public banks to raise capital from markets will be critical to reduce GoI’s recapitalisation burden next year,” he added. | net non-performing assets (NPAs) and credit provisions for banks will trend lower in FY22. loan restructuring requests have been much lower than previously estimated. Icra has revised its loan restructuring estimates downward to 2.5-4.5% of advances, against 5-8% estimated earlier. net NPA ratio expected to decline to 2.4-2.6% by march 2022. low interest rates, improved business volumes, better job prospects and income levels could also stimulate credit demand. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/dbs-raises-indias-gdp-estimate-to-7-4-for-fy19/articleshow/65490933.cms | Global financial services firm DBS has raised the real GDP forecast for the current financial year to 7.4 per cent as against 6.7 per cent in last fiscal, driven by consumption and higher public spending, says a report."The economy has recovered since the transitory shocks of demonetisation and GST rollout," DBS said in a research note adding that consumption both urban and non-farm and higher public spending is expected to lift growth.The report noted that the remonetisation process is complete and "currency with the public has not only returned to pre-demonetisation levels but also surpassed trend growth."As per the report, while private consumption is likely to benefit from better urban and non-farm spending, the agricultural sector will have to deal with easing real wage growth, falling crop prices and weak terms of trade.As per the report base effects will prop up growth numbers in the first half of this financial year, but in the second half GDP numbers are expected to taper off."The FY19 growth trajectory should be viewed in two halves; strong first half before momentum tapers. We revise up our real GDP estimate to 7.4 per cent from 7.2 per cent previously," DBS said.In the January-March quarter, India's gross domestic product (GDP) grew at the fastest pace in seven quarters at 7.7 per cent on robust performance by manufacturing and service sectors as well as good farm output.The report, however, cautioned that while a cheaper currency is expected to benefit exports, a challenging global demand outlook and simmering trade disputes might outweigh any boost to growth.Besides, imports will be led by higher oil purchases and strong demand for capital and consumer goods (electronics), it added. | global financial services firm DBS raises real GDP forecast for current financial year to 7.4%. consumption and higher public spending are expected to lift growth, report says. agriculture sector will have to deal with easing real wage growth, falling crop prices and weak terms of trade. in the first half of this financial year, growth trajectory should be viewed in two halves. | Positive |
https://www.businesstoday.in/current/economy-politics/pm-modi-pre-election-masterstroke-govt-hand-deliver-110-million-ayushman-cards/story/280377.html | Ayushman Bharat health insurance scheme cards will now be printed and hand-delivered to about 110 million families. The government will also organise 'Ayushman Pakhwaras' in villages to implement this ambitious plan. The Modi government will also set up a 24X7 centre in Delhi to attend to queries and complaints about the schemes. The family cards that the government is planning to hand-deliver will mention the names of the eligible individuals and will come along with a letter intimating each beneficiary about the primary points of the scheme.
Additionally the call centre will have a toll free number and will have the responsibility of answering queries and addressing complaints via mails and calls. The call centre will also be vested with the duty of ensuring that beneficiaries have all the information about the schemes and services.
CEO of Ayushman Bharat, Indu Bhushan said that the government plans to finish all preparations for the scheme by August 15, as mentioned in The Economic Times.
Out of 500 million beneficiaries, the government has so far identified 80% of them in rural areas as well as 60% in the urban areas. Contracts for printing the cards and running the call centre will be awarded by August. More than 107 million family cards need to be printed and delivered over a period of two years as per a document by AB-NHPM.
The service provider will print the cards, sort them into bundles according to area code and then deliver them. The letters would be sent to gram panchayats and distributed during Ayushman Pakhwaras door-to-door by health workers. Beneficiaries outside their home states could facilitate national portability benefits with the help of the call centre.
Bhushan, however, added that it will take less than two years and meanwhile the beneficiaries will not be denied services in case their cards have not reached them.
As the 2019 election is fast approaching, this move of the Modi government can get a nod of approval from the masses. To make this scheme a success, the health ministry recently even said that furnishing Aadhaar card to get access to the scheme is desirable but not mandatory. Aadhaar, whose constitutional validity is still under trial in the Supreme Court can become a major hindrance, especially as the sentiment towards it is not very favourable.
The Modi government is also currently falling short of achievements to show for, while a spate of issues challenging the country's economy and social fabric has popped out its ugly head. So, Ayushman Bharat's smooth implementation could just be the masterstroke that the Modi government was looking for.
However, recent reports had mentioned that while the government is shooting for the August 15 deadline, only 12-15 states would be able to roll out the scheme on that day, as told by Dr Vinod K Paul, the chief architect of the scheme who is also a member of Niti Aayog. States like UP, Bihar and West Bengal may take another 6 months or longer to launch Ayushman Bharat. | the government will also organise 'Ayushman Pakhwaras' in villages. the call centre will have a toll free number and will be vested with the responsibility of answering queries and addressing complaints via mails and calls. out of 500 million beneficiaries, the government has so far identified 80% of them in rural areas as well as 60% in the urban areas. | Positive |
https://www.moneycontrol.com/news/business/economy/india-gdp-data-highlights-growth-falls-to-3-1-agriculture-sector-grows-at-5-9-5334511.html | The government on Friday released January-March GDP figure. The Indian economy grew at 3.1 percent in the January-March quarter (Q4) of 2020, its slowest pace in at least two years. The GDP growth was recorded at 5.8% in the corresponding quarter of 2019-20.
For the full FY20 financial year, the number came down to 4.2 percent from 6.1 percent in 2018-19.
The agriculture sector grew at 5.9 percent in Q4, compared to 1.6 percent in the same quarter a year ago.
Nominal GDP growth fell to 7.2 percent in FY20 compared to 11 percent last year.
Farm Sector grew at 5.9 percent in Q4 as compared to 1.6 percent growth in the year-ago quarter. Growth in the mining sector was 5.2 percent vs minus 4.8 percent last year.
The manufacturing sector contracted by 1.4 percent as compared to a growth of 2.1 percent year-on-year. The construction sector also registered degrowth of 2.2 percent as compared to 6 percent growth last year.
India’s per capita income in real terms during 2019-20 was estimated to reach Rs 94,954 as compared to Rs 92,085 in the year 2018-19, growing by 3.1 percent during FY20, which was lower compared to a growth of 4.8 percent during 2018-19.
At current prices, the country’s per capita income (average income earned per person) during FY20 reached Rs 134,226, showing a rise of 6.1 percent as compared to ₹ 1,26,521 during 2018-19.
The government says GDP estimates are likely to undergo revision.
India's core sector output in April contracted an unprecedented 38.1 percent in April as the country was under lockdown for over two months due to coronavirus.
Cement was the worst performer with growth contracting 86 percent versus a 25.1 percent contraction in March.
The following was the performance of the other key sectors:
Coal Output Growth At -15.5% Vs 4% (MoM)
Crude Oil Output Growth At -6.4% Vs -5.5% (MoM)
Natural Gas Output Growth At -19.9% Vs -15.1% (MoM)
Refinery Products Output Growth At -24.2% Vs -0.5% (MoM)
Fertilizers Output Growth At -4.5% Vs -11.9% (MoM)
Electricity Output Growth At -22.8% Vs -8.2% (MoM)
The nationwide lockdown kicked in from March 25, and its actual impact on the economy will show up in the subsequent months when businesses screeched to a standstill.
The Reserve Bank of India (RBI) recently lowered India's growth forecast for the ongoing fiscal due to the coronavirus crisis. "The GDP growth in 2020-21 is expected to remain in the negative territory with some pick up in the second half," RBI Governor Shaktikanta Das had said last week. | the economy grew at 3.1 percent in the January-March quarter (Q4) of 2020. the growth was recorded at 5.8% in the corresponding quarter of 2019-20. agriculture sector grew at 5.9 percent in Q4, compared to 1.6 percent in the same quarter a year ago. growth in the mining sector was 5.2 percent vs minus 4.8 percent last year. | Positive |
https://www.moneycontrol.com/news/business/ola-appoints-julien-geffard-to-lead-europe-ev-operations-6216811.html | Ride hailing major Ola on Friday said it has appointed Julien Geffard as the Director of Go-To-Market Strategy for its electric business in Europe as it prepares to launch its range of electric scooters in Europe in the coming months.
In this role, Geffard will be responsible for building and growing Ola’s European operations for its electric business and will be based in Amsterdam, a statement said.
He brings over 15 years of deep automotive experience. Before joining Ola, he was the Global Commercial Director and a member of the board of management at Peugeot Motorcycles. He has worked with Bentley Motors Ltd, Alpine and BMW.
"We are happy to announce the appointment of Julien to lead our European operations. As we gear up to bring the first of our range of electric vehicles to markets around the world, Julien’s expertise will be key to building our electric business across Europe," Bhavish Aggarwal, Chairman and Group CEO of Ola, said.
He added that as a rapidly growing hub of electric vehicles (EVs), Europe is a key market for Ola to realise its vision of moving the world towards sustainable mobility solutions.
Ola said it is in advanced stages of setting up the world’s largest scooter manufacturing facility in India, and once completed, it will have the capacity to produce over two million scooters a year.
"Europe is a key market for us and our tech and digital expertise, coupled with the unique customer experience, will be key for us as we launch our products across Europe," Geffard said.
The two-wheeler EV market in Europe has seen double-digit growth in 2020, with customers looking for differentiated products that are stylish, smart and lightweight, available at competitive prices.
The development of EV charging infrastructure is expected to continue as governments make stronger investments to encourage sustainable mobility solutions aimed at zero vehicle emission. | the ride hailing company has appointed Julien geffard as its director of go-to-market strategy for its electric business in Europe. geffard will be responsible for building and growing Ola’s European operations for its electric business and will be based in Amsterdam. he brings over 15 years of deep automotive experience. the two-wheeler EV market in Europe has seen double-digit growth in 2020. | Positive |
https://www.moneycontrol.com/news/business/focused-on-investing-in-india-for-long-run-facebook-6228051.html | Facebook is committed to investing in India for the long term and continues to build tools for businesses to help them build and grow their online presence, a top company official said.
Speaking to PTI, Facebook Chief Revenue Officer David Fischer said the company has made investments and undertaken some unique bets that it hasn''t done in any other part of the world.
"One of the things that really stands out about India is the pace of innovation, and the transformation that's happening here and the impact that it is having. And that''s the reason that we are making special investments, we''ve set up a special structure for India and doing some things in India that we haven''t done anywhere else around the world, making some unique investments and bets," he said.
Facebook is hosting ''Fuel for India 2020'', which will see its chief Mark Zuckerberg and Reliance Industries Chairman and Managing Director Mukesh Ambani engage in a conversation around opportunities in India, the way digital can accelerate economic progress, and how small businesses will be a key part of the global recovery going forward.
Fischer noted that India is the only country the company has made minority investments in companies like Meesho and Unacademy, to advance digital innovation.
"Of course, there is our partnership with Jio platforms. The joint focus of both companies is on connecting people, helping digital economy come to life and empowering the more than 60 million small businesses across India with digital tools...So we''re really enthusiastic about the opportunities in India," he added.
In April, Facebook had announced an investment of USD 5.7 billion (Rs 43,574 crore) in Jio Platforms.
Fischer explained that many tools that were previously piloted in the US first, are now being tested in India - indicating the importance of the Indian market.
"Now, with the launch of Reels on Instagram and the testing and rollout of Live Rooms on Instagram, Watch on Facebook where India really is among the top markets for that, WhatsApp Pay is something that we''ve started in India...we''re investing in innovating for India," he said.
Facebook India''s revenues grew 43 per cent year-on-year to about Rs 1,277.3 crore in 2019-20, while its net profit more than doubled to Rs 135.7 crore. Its gross ad billing was at Rs 6,612.6 crore.
"We are certainly proud of the growth that we''re seeing (in India), and we will continue to focus on that but we are much more attuned to the results of the clients who are using our tools and so from our standpoint, we want to grow both people using our free tools as well as our paid tools. We also really focus on trying to drive growth for the businesses on our platforms because if we can help them do that, then we will get good business results," Fischer said.
Talking about ''Fuel for India 2020'', Facebook India vice-president and managing director Ajit Mohan said the event will showcase how institutions - non-profits, individuals using Facebook groups, businesses, and creators - are leveraging Facebook, Instagram and WhatsApp.
"We believe that the story that of our work in India, across our apps, the impact is so wide that this was an opportunity for us to tell those stories but really relying on our partners and creators to talk about how they''re using our platforms," he added.
The event will see participation from top leaders at Facebook and its group companies, and partners. These include Facebook COO Sheryl Sandberg, Instagram head Adam Mosseri, Unacademy co-founder Gaurav Munjal, Whitehat Jr founder Karan Bajaj and Samsung India Senior VP Asim Warsi among others. | facebook is committed to investing in India for the long term, a top company official says. chief revenue officer says the company has undertaken some unique bets. he says the company is investing in innovating for the country. facebook india''s revenues grew 43 per cent year-on-year to about Rs 1,277.3 crore. its net profit more than doubled to Rs 135.7 crore. | Positive |
https://www.moneycontrol.com/news/business/sbi-to-link-home-loans-to-repo-rate-from-july-4075191.html | live bse live
nse live Volume Todays L/H More ×
After linking its short-term loans and large savings deposits rates to the repo rate, the largest lender State Bank on Friday said it will introduce repo-linked home loans from July.
The lender has also reduced interest rate on cash credit account (CC) and overdraft (OD) customers with limits above Rs 1 lakh, after the RBI reduced the repo rate by 25 basis points on Thursday.
"We will introduce repo-linked home loans from July 1," SBI said in a late evening statement.
The monetary policy committee had unanimously decided to reduced repo rate by 25 basis points to 5.75 percent in the second bi-monthly policy Thursday, taking it down to a nine- year low, citing sagging growth and to cushion the rising headwinds to the economy.
It was the third consecutive repo rate cut by RBI, with cumulative reduction of 75 basis points in 2019, so far.
"The benefit of reduction in the repo rate by 25 bps has been passed in its entirety to our CC/OD customers (limits above Rs 1 lakh), with effect from July 1," SBI said.
The effective repo-linked lending rate (RLLR) for CC/ OD customers is 8 percent now, it said, while for savings deposits above Rs 1 lakh the new rate would be 3 percent.
In March, the bank had linked all CC accounts and ODs with limits above Rs 1 lakh to the repo rate plus a spread of 2.25 percent. For above Rs 1 lakh, it had set its savings deposit rates to 2.75 percent below the repo rate. | the lender has also reduced interest rate on cash credit account (CC) and overdraft (OD) customers. RBI had reduced the repo rate by 25 basis points to 5.75 percent. it was the third consecutive repo rate cut by RBI. the effective repo-linked lending rate for CC/ OD customers is 8 percent now. a monetary policy committee had unanimously decided to reduce the repo rate. | Positive |
https://www.moneycontrol.com/news/business/chinese-investors-flummoxed-by-indias-new-foreign-investment-rules-5182701.html | India's plan to screen foreign direct investments from neighbouring countries has Chinese firms concerned that such scrutiny will affect their projects and delay deals in one of Asia's most lucrative investment markets.
The tougher rules were not a surprise, as other countries are also on guard against fire sales of corporate assets during the coronavirus outbreak, but that they apply to investments from countries that share a land border with India raised eyebrows.
Unlike neighbouring Pakistan, Bangladesh, Myanmar, Nepal and Bhutan, China has major investments in India.
Chinese firms existing and planned investments in India stand at more than $26 billion, research group Brookings said in March, with the world's second-most populous nation emerging as a key market for everything from automobiles to digital tech.
Chinese automakers Great Wall Motor and SAIC unit MG Motor have bet big on India while its tech giants Tencent and Alibaba have fuelled growth of Indian digital payments firms Paytm, grocer BigBasket and ride-hailing giant Ola.
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 new rules are to curb "opportunistic" takeovers during the coronavirus outbreak that has hit Indian businesses, but government sources have said they will also apply to greenfield investments. China has called the rules "discriminatory".
Some Chinese investors have already "put things on hold" as they await further clarity on the rules, said Vaibhav Kakkar of Indian law firm L&L Partners.
"Every Chinese investor is worried, any government approval could take months," said Kakkar, who advises several foreign companies and investors.
This will affect India's digital businesses who are in dire need of funds to tide over the coronavirus crisis, he said.
MG Motor and Great Wall are concerned about the policy and its possible implications on future investment plans, according to four sources familiar with the thinking.
While MG started selling cars in India last year, it is yet to fully invest the $650 million it has committed to India. Great Wall is yet to start production in India but said in February it plans to invest $1 billion in the coming years.
"Sentiment wise it's not been taken well but it will not change the investment plans for now," said one of the sources who works closely with Chinese automakers in India.
MG Motor and Great Wall did not respond to a request for comment.
Indian craft beer maker Bira's roughly $50 million of bridge financing round that involved Chinese investors could be delayed due to the new rules, said an industry source with direct knowledge. Bira did not respond to a request for comment.
ANTI-CHINA SENTIMENT
India's industries ministry is reviewing several queries received since the policy was made public over the weekend, but it has not been decided if further clarifications will be issued, a government official told Reuters.
The new rules govern entities located in a country that shares a land border with India. Such foreign direct investments will now require government approval, meaning they can't go through a so-called automatic route, and will also apply on investments from Hong Kong, Reuters has reported.
The policy risks souring relations between the two nations and furthering anti-China sentiment already festering in India before the coronavirus outbreak.
Companies regularly battle consumer perception that Chinese goods are of inferior quality and those views have only worsened as the coronavirus epidemic spread from China around the world.
Welcoming the investment rules, Ashwani Mahajan of the Swadeshi Jagran Manch, a Hindu nationalist group close to India's ruling party, said domestic startups should not rely on any Chinese funding as there was enough local capital available.
"We have even more reasons to oppose China now there is a general feeling against China, and secondly we have been saying Chinese goods are of bad quality," said Mahajan.
Federal think tank Niti Aayog's chief executive Amitabh Kant defended the screening of investments and rejected the notion it was targeting China.
"Nowhere have we said that we are going to constrain China's investment. They have been a big player in India's start-up story," Kant told the CNBC TV18 channel. | china has major investments in india, with its firms already worth more than $26 billion. 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 works by mimicking a natural infection. a vaccine works by mimicking a natural infection. | Positive |
https://www.moneycontrol.com/news/business/commodities/top-oil-producers-agree-on-record-output-cuts-5137231.html | Top oil-producing countries agreed Sunday to record output cuts in order to boost plummeting oil prices due to the new coronavirus crisis and a Russia-Saudi price war.
OPEC producers, dominated by Saudi Arabia, and allies led by Russia met via videoconference for an hour Sunday in a last-ditch effort to cement an accord struck early Friday that hinged on Mexico's agreement.
In a compromise, Mexico came onboard Sunday to an agreement to cut 9.7 million barrels per day from May, according to its Energy Minister Rocio Nahle, down slightly from 10 million barrels per day envisioned earlier.
Kuwait Oil Minister Khaled al-Fadhel tweeted that, following extensive efforts "we announce completing the historical agreement".
Saudi Energy Minister Prince Abdulaziz bin Salman, who chaired the meeting together with his Russian and Algerian counterparts, also confirmed that the discussions "ended with consensus".
US President Donald Trump welcomed a "great deal for all", saying on Twitter it would "save hundreds of thousands of energy jobs in the United States".
He added he "would like to thank and congratulate" Russian President Vladimir Putin and Saudi Crown Prince and de facto leader Mohammed bin Salman, both of whom he had spoken to.
Initial reticence from Mexico to introduce output cuts had led to a standoff that cast doubt on efforts to bolster oil prices, pushed to near two-decade lows.
Oil prices have slumped since the beginning of the year due to the COVID-19 pandemic that has sapped demand as countries around the world have put their populations under lockdown.
Compounding the problem, key players Russia and Saudi Arabia had engaged in a price war, ramping up output in a bid to hold on to market share and undercut US shale producers.
Rystad Energy analyst Per Magnus Nysveen said Sunday's agreement provided "at least a temporary relief" as fuel consumption was expected to fall globally by 27 million barrels per day in April and 20 million barrels per day in May.
His colleague Bjornar Tonhaugen said, however, that even though the deal made "the single largest output cut in history", prices were still expected to see "renewed downwards pressure".
"The oil market will see enormous stock builds in April as the deal is only in effect from 1 May, while gradual shut ins and production declines will already happen during the current month," he said.
Top oil producers struggled to finalise production cuts during a virtual summit held by G20 energy ministers on Friday, despite Trump's mediation efforts to end the standoff with Mexico.
The OPEC-led agreement foresees deep output cuts in May and June followed by a gradual reduction in cuts until April 2022.
Russian Energy Minister Alexander Novak was quoted by Russian news agency TASS as saying he expected oil markets not to recover before "end of the year, in the best case". | OPEC producers, dominated by Saudi Arabia, and allies led by Russia meet for an hour. in a compromise, Mexico comes onboard to cut 9.7 million barrels per day from may. the deal is expected to boost plummeting oil prices due to the new coronavirus crisis. the oil price slump has been exacerbated by a Russia-saudi price war. | Positive |
https://www.moneycontrol.com/news/business/markets/budget-2019-stt-securities-transaction-tax-4154981.html | Representative image
In a relief to traders, Finance Minister Nirmala Sitharaman on July 5 proposed to restrict Security Transaction Tax or STT to the difference between settlement and strike price in case of exercise of options.
This change, however, will not affect the levying of STT on any other transaction on the exchanges.
“Essentially what it means is that it will result in lesser tax for equity derivatives option traders. The settlement price is the average closing of the underlying on the day of expiry. The strike price is the level of underlying for which the Call or Put option is bought,” Jayant Manglik, President - Retail Distribution, Religare Broking Ltd told Moneycontrol.
“It means that now the difference between strike and settlement will be calculated and STT will be levied on just that, a change from the previous method when STT was calculated on the entire settlement price,” he said.
Sale of an option in securities attract STT of 0.05 percent for the seller while sale of an option in securities where the option is exercised by the purchaser is 0.125 percent, and sale of a future contract in securities attract a STT of 0.01 percent.
“The STT change is a big relief to options traders as the STT charge will no more be made on the value of the contract but on the difference between the strike price and the market price only,” Rohit Srivastava, Fund Manager - PMS, Sharekhan by BNP Paribas told Moneycontrol.
“For options that close in the money, it would not force traders to square up in the last hour of trading as was the case earlier. Most traders would try squaring up to avoid the higher STT that made it expensive to hold onto a position that was in the money ahead of expiry. Now the cost is not restrictive and once can allow it to expire in the money to lock in gains,” he said.
Amit Gupta, CEO and Co-founder TradingBells told Moneycontrol that “This is a huge relief to the markets. STT levy has been streamlined. That's a relief since now traders won't have to be worried about compulsorily squaring off in-the-money options before expiry,” he added. | Finance minister Nirmala Sitharaman proposes to restrict security transaction tax. tax will be levied on difference between settlement and strike price. sale of option in securities attracts 0.05 percent for the seller. amit gupta, CEO and co-founder tradingbells says it is a "huge relief" to the markets. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/lt-is-idea-of-the-year-for-chakri-lokapriya-heres-why/articleshow/73512589.cms | L&T to raise Rs 1,000 crore through NCDs
L&T may report double-digit rise in profit, cut guidance
The festive month of Diwali brought a much-needed boost in online shopping after a muted start to the year in the first half. Ecommerce platforms, retailers and online sellers reported a steady uptick in sales with categories like electronics, food and grocery, and jewellery reporting double digit growth over last year.
Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery, potentially multiplying banks’ realizations.
Samvat 2080 started on a steady note for investors with India’s stock benchmarks gaining over half a per cent in the special 60-minute Muhurat trading session on Sunday evening to mark the start of the traditional Hindu new year.
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Top Trending Stocks: Sensex Today Live | ecommerce platforms, retailers and online sellers reported a steady uptick in sales. categories like electronics, food and grocery, and jewellery reported double digit growth over last year. Sensex and nifty are the most traded stocks in the world. Sensex is the most traded stock in the world. Sensex is the most traded stock in the world. | Positive |
http://www.financialexpress.com/budget/economic-survey-2018-good-news-for-job-seekers-budget-may-put-employment-on-top-priority/1034858/ | India economic survey 2018: The Economic Survey 2017-18, which was released in Parliament ahead of the Union Budget 2018 to be presented by Finance Minister Arun Jaitley on February 1 has some good news for jobseekers and says that job creation will remain a key focus area for the government in the near term.
The economic survey said that employment, i.e, finding good jobs for the young and burgeoning workforce; especially for women; education, i.e; creating an educated and healthy labor force and agriculture, i.e; raising farm productivity while strengthening agricultural resilience will remain the three areas of policy focus in the near term. Further, the economic survey notes that as India emerges as one of the world‘s largest economies, it needs to gradually move from being a net consumer of knowledge to becoming a net producer.
Also read: India Economic Survey 2018: Arvind Subramanian says economic revival underway; 4 key takeaways
“Given the dizzying pace and expansion of scientific research and knowledge on the one hand and a generally higher importance given to careers in engineering, medicine, management and government jobs amongst India‘s youth on the other, India needs to rekindle the excitement and purpose that would attract more young people to scientific enterprise,” said the survey.
Watch video: Budget 2018- 10 Expectations Of The Common Man
The survey says that the government must look to invest in science. “Investing in science is also fundamental to India’s security: the human security of its populations; the resilience needed to address the multiple uncertainties stemming from climate change; and the national security challenges stemming from new emerging threats, ranging from cyberwarfare to autonomous military systems such as drones,” noted the economic survey.
The economic survey also found that India is expected to regain the world’s fastest growing major economy tag as it is likely to clock 7 to 7.5 percent growth rate in 2018-19, up from 6.75 percent in the current fiscal, the survey said.
Also read: India economic survey 2018: Farmers gain as agriculture mechanisation speeds up, but more R&D needed
A recent study by SBI group Chief Economic Advisor Soumya Kanti Ghosh and Pulak Ghosh found that 15 million people are being added to the labour force every year. The study, titled “Towards a Payroll Reporting in India”, estimated that 3.68 million jobs were generated till November of FY18, which would imply 5.5 million in the entire year. “Based on all estimates, payroll of 5.9 lakh (i.e. 7 million annual) generated every month in India in current fiscal,” the report had said.
Earlier, the congress leader Rahul Gandhi had said that the prime minister should say if he is unable to address the problems like unemployment and the Congress will come and do it in six months. “Farmers and youth are the two main issues concerning India and if Modiji cannot address these, he should say so and the Congress will come and do it in six months,” Congress Vice -president Rahul Gandhi had said during the recent Uttar Pradesh polls. | the economic survey 2017-18 was released in parliament ahead of the Union Budget 2018 to be presented by finance minister Arun Jaitley on February 1. it says that employment, i.e. finding good jobs for the young and burgeoning workforce, especially for women, education, and agriculture will remain the three areas of policy focus in the near term. the survey also found that India is expected to regain the world’s fastest growing major economy tag as it is likely to clock 7 to 7.5 percent growth rate in 2018-19 | Positive |
https://www.moneycontrol.com/news/business/markets/gold-to-slide-further-on-trade-deal-hopes-stronger-dollar-4670651.html | Jigar Trivedi
MCX gold ended last week with a marginal loss of 0.26 percent, while Comex gold slipped 0.41 percent. Holding at the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, reduced from 897 tonnes as on November 15 to 892 tonnes on November 22.
China has invited top US trade negotiators for a new round of face-to-face talks in Beijing amid continued efforts to strike at least a limited deal.
China's top trade negotiator said he was cautiously optimistic. Its commerce ministry said the country would strive to reach an agreement with the United States, with both sides keeping communication channels open.
Beijing is demanding the immediate removal of all the levies imposed after May and also a gradual phasing out of those slapped earlier.
US vice president Mike Pence said it would be hard for the US to do a deal if protests in Hong Kong were met with violence. Washington passed two bills intended to support protesters in Hong Kong and send a warning to China on its human rights record.
President Donald Trump is expected to sign the legislation, passed by Congress, supporting Hong Kong protesters and that could be a blow to the trade deal.
China has threatened retaliation, saying supporting the protesters is a “gross” interference in Hong Kong affairs.
Fed chairman Jerome Powell has told Trump that there is has no plan to cut rates for the fourth time in December unless the economy takes a dramatic 'U' turn. Even the minutes of the last Fed met echoed the same views.
The dollar appreciated, with a couple of supportive economic data.
The housing data has been encouraging. Housing starts for October grew at 3.8 percent against de-growth of 7.9 percent a month ago. Building permits for October grew at 5 percent against de-growth of 2.7 percent a month ago.
Philly fed manufacturing index increased to 10.4 in November from 5.6 in October. Existing home sales improved by 1.9 percent in October from 2.5 percent fall in September.
From an economic data point of view, consumer confidence (November) numbers and new home sales (October) numbers will be released on November 26. The next day will be more important, as the US will release Core durable goods order (October), Q3 GDP, weekly jobless claims, Core PCE price index and personal spending (October), which may impact the yellow metal. November 29 will be the Thanks Giving holiday.
US’ manufacturing output accelerated in November to its fastest pace in seven months and services activity also picked up more than expected, a survey of purchasing managers showed on November 22.
Gold may reach lower levels as positive developments towards an interim trade deal will lift demand for riskier assets and boost the dollar.
An ambitious "phase two" trade deal is looking less likely, as the two countries struggle to agree to the preliminary "phase one" agreement, according to US and Beijing officials, lawmakers and trade experts.
Overall, gold may slide further on safe-haven appeal because of the hopes of a trade deal.
(The author is Fundamental Research Analyst - Commodities at Anand Rathi Share and Stock Brokers Limited.)
Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | china invites top US trade negotiators for a new round of face-to-face talks. china's commerce ministry says it will strive to reach an agreement with the u.s. a new round of face-to-face talks is expected on thursday. the dollar appreciated with a couple of supportive economic data. housing starts for October grew at 3.8 percent against de-growth of 7.9 percent. | Positive |
https://economictimes.indiatimes.com/industry/services/hotels-/-restaurants/localised-menu-entry-level-pricing-highway-outlets-to-be-focus-areas-wendys/articleshow/79510688.cms | Localised menu, entry-level pricing, highway outlets to be focus areas: Wendy’s
The deal has been inked at a time when the virus-hit eating-out sector is struggling to improve its dine-in numbers.
Synopsis
The quick service restaurant company and domestic firms Rebel Foods and Sierra Nevada Restaurants have signed a strategic partnership to expand Wendy’s presence in India over the next decade. "We’re not aware of any deal this size involving a global quick service restaurant chain,” Reid, who has been steering Wendy’s operations in India through Sierra Nevada Restaurants, said. | quick service restaurant company and domestic firms Rebel Foods and Sierra Nevada Restaurants have signed a strategic partnership to expand Wendy’s presence in India over the next decade. synopsis: "we’re not aware of any deal this size involving a global quick service restaurant chain," said Reid. the quick service restaurant company and domestic firms have signed a strategic partnership to expand Wendy’s presence in India over the next decade. | Positive |
https://economictimes.indiatimes.com/news/economy/finance/india-un-development-partnership-fund-supports-projects-to-respond-to-covid-19/articleshow/77257035.cms | UNITED NATIONS: The India-UN Development Partnership Fund is supporting various projects to respond to the COVID-19 pandemic in areas of boosting national healthcare capacities , reducing risk of transmission, mitigating socio-economic impact and catalysing transformative recovery, according to a UN-supported website.Established in 2017, the India-UN Development Partnership Fund is a dedicated facility within the United Nations Fund for South-South Cooperation. It is supported and led by the Government of India, managed by the United Nations Office for South-South Cooperation , and implemented in collaboration with the United Nations system.According to information on the website South-South Galaxy, a global knowledge sharing platform, supported by the United Nations Office for South-South Cooperation (UNOSSC), projects in Antigua and Barbuda focussed on strengthening national health capacities and reducing socio-economic and human development negative impacts of COVID-19 crisis.A one million dollar budget has been approved for United Nations Development Programme (UNDP) implementation of the project, which aims to develop a food security strategy, identifying vulnerable households and develop mechanisms for cash-transfers and in-kind support.Under the project, support will be provided towards economic reactivation and transition of small businesses with self-employed workers and actors in the informal economy to a more sustainable model for the period of social distancing and beyond, it said.In Palau, a project aims to strengthen national health capacities to address COVID-19 crisis. Medical supplies, equipment and testing capacity have been approved with a budget of USD 153,000.In Grenada, with a budget of USD 100,000, the project approved will see purchasing and installing of new incinerator for proper management of biomedical waste.In Guyana, the project's focus is strengthening clinical management of COVID-19 patients and reducing the risk of virus transmission among healthcare workers.With a total budget USD 1 million, the project will provide key intensive care medical equipment for improved COVID-19 patient care in Guyana and it aims to reduce the risk of infection among health workers by securing the provision of adequate Personal Protection Equipment.In Saint Lucia, with a budget of USD 1 million, the project is approved for implementation by UNDP and World Food Program (WFP).UNDP will procure ventilators and Personal Protection Equipment while WFP will support the government-led cash transfer programme to address the socio-economic impact of the COVID-19 response on the most vulnerable households in Saint Lucia and in expanding the Public Assistance Programme (PAP) to increase the reach to affected and vulnerable persons.In Nauru, a USD 1 million project, approved for implementation by the UNDP and the WHO, will focus on procuring medical equipment and Personal Protection Equipment. | the India-UN Development Partnership Fund is a dedicated facility within the United Nations Fund for South-South Cooperation. it is supported and led by the government of india. projects in antigua and barbuda focussed on strengthening national health capacities. a one million dollar budget has been approved for a project in guinea. a project in grenada will see purchasing and installing of new incinerator for proper management of biomedical waste. | Positive |
https://economictimes.indiatimes.com/magazines/panache/be-resilient-and-live-to-fight-every-day-says-rudra-chatterjee-feels-black-swan-events-like-covid-19-test-leadership/articleshow/76155205.cms | Agencies One of the most important lessons that the pandemic taught Rudra was the power of resilience.
One of the most important lessons that the pandemic has taught Rudra Chatterjee , Managing Director Luxmi Group and OBEETEE chairman, is the power of resilience. He believes that black-swan events (like the coronavirus pandemic) test leadership “In 2008, we thought we saw the worst global crisis and by 2020 everyone was estimating rapid growth. However, all projections fell apart,” he told ET Panache. “Leadership is most relevant when plans fail, when rule books are irrelevant and one needs to struggle, innovate and ultimately hopefully survive. Being resilient and living to fight another day is more important than meeting projections.”One way that Chatterjee is staying resilient is by balancing work and family life. The MD begins his day with yoga and meditation with his children, Meghna and Aneesh. He tries to have lunch with this father at 1 pm and makes it a point to shut down after 7 pm. “These times are stressful, every day work brings unexpected challenges but remaining sane and sometimes checking out is an ongoing effort.”In addition, the MD makes time to read a little at the end of every day. “I just finished reading ‘Identity’ by Francis Fukuyama . Fukuyama is a very insightful thinker and identity has been the driver of global politics throughout this decade. He speaks of Trump, Brexit and why we humans are essentially tribal creatures reverting to familiarity when we feel threatened.”Chatterjee is also using this time in lockdown to catch up on some old business school classes. “Columbia has made courses available online for alumni and I am attending a couple. I am greatly enjoying a class I attended fifteen years ago - ‘Globalization’ by Joseph Stiglitz and Bruce Greenwald.” | Managing Director of Luxmi Group and OBEETEE chairman, believes that black-swan events (like the coronavirus pandemic) test leadership. he begins his day with yoga and meditation with his children, Meghna and Aneesh. the MD makes it a point to shut down after 7 pm. he also makes time to read a little at the end of every day. | Positive |
https://www.financialexpress.com/money/axis-bank-launches-ace-credit-card-in-collaboration-with-google-pay-and-visa/2106145/ | With consumer preference for digital payments growing steadily over the last several years, Axis Bank, in collaboration with Google Pay and Visa, today launched the ACE Credit Card. The card is designed for the growing base of users keen to participate in the digital economy.
Payments for essential use cases like mobile recharges, bill payments made via Google Pay earn users 5% in cashback. Users also get 4%-5% cashback for spends made on daily use categories such as food ordering, online grocery delivery, cab rides for transactions made on partner merchants’ platforms such as Swiggy, Zomato, BigBasket, Grofers and Ola. There is also an unlimited 2% cashback on all other transactions (except EMIs, Cash withdrawals, Fuel) making it one of the most rewarding credit cards in its segment.
The ACE Credit Card is aimed at bringing a seamless, digital experience to users, starting from application to issuance, with the entire user journey for the credit card application being completed digitally. Users will be able to get cashback directly into their ACE Credit Card accounts. The tokenization feature enabled in partnership with Visa, will allow Google Pay users to use their ACE Credit Card to make payments through a secure digital token attached to their phone without having to physically share their card details.
The primary cardholder should be between the age of 18 and 70 years. Unless there are case variations, the required documents for Axis Bank ACE Credit Card application include a copy of your PAN card or Form 60, residence proof, identity proof, a colour photograph and proof of income in the form of latest payslip / Form 16 / IT return copy.
The ACE Credit Card can be availed by eligible users through the Google Pay app.
Joining Fees
Rs. 499 – Waived for all applicants in 2020
In 2021, joining fee reversed if spends exceed Rs 10,000 within 45 days of issuance
Annual Fees
Rs. 499 (applicable from second year of use)
Annual fee waiver at Rs 2 lakh spends in the year
Cashback
Unlimited 5% cashback on Recharges & Bill Pay transactions (electricity, internet, gas, DTH, mobile recharge, and more) through Google Pay
Unlimited 4% cashback on online food delivery – Zomato, Swiggy, and cab rides – Ola
Unlimited 2% on all other transactions (exclusion of EMI, wallet load, cash withdrawal and fuel transactions)
Fuel Surcharge waiver
1% fuel surcharge waiver (valid for transactions between Rs 400 and Rs 4,000. Max benefit up to Rs 500 per month)
Finance Charges (Retail purchases and Cash): 3.4% per month (49.36% per annum)
Limited Time Offers
● Joining fee of Rs 499 waived for users who apply in 2020
● Unlimited 5% cashback on Grofers & BigBasket
● Rs 500 cashback after 3 transactions (min Rs 500 each) within 45 days of card issuance
Lounge Benefit
Complimentary lounge access 4 times a year at participating in domestic airports | ACE Credit Card is designed for users keen to participate in the digital economy. payments for essential use cases like mobile recharges, bill payments made via Google Pay earn users 5% in cashback. users also get 4%-5% cashback for spends made on daily use categories such as food ordering, online grocery delivery, cab rides. unlimited 2% cashback on all other transactions (except EMIs, Cash withdrawals, Fuel) | Positive |
https://www.financialexpress.com/money/important-things-to-look-at-while-buying-health-insurance-for-your-parents/2086363/ | It is imperative for us to get covered by health insurance, especially during this time. More importantly, if your elderly parents are not covered under a policy, it is time to get them insured.
Rakesh Goyal, Director of Probus Insurance, says, “Having a health cover ensures that your parents get the finest treatment during medical emergencies without the need of financial worries. Considering the age factor, your parents are more vulnerable to various health issues or illnesses, and getting a high insured plan for them can make the treatment process relaxing without any financial constraints.”
Most salaried people usually depend on their employer-provided health plans, and do not get an additional health plan. Hence, after retirement, these people are left without a separate health cover. But it is important for the retired and the senior citizens to get covered by a policy, especially because they are the ones with high chances of getting a host of health problems. Additionally, with the steep rise in healthcare costs, without a health insurance policy, it could leave a hole in your pocket.
While buying a policy, note that if your parents have any kind of pre-existing diseases, then those diseases would also be covered after a specific period (waiting period). This would help you to save on the heavy expenses on the treatment of these pre-existing diseases, post the waiting period. The waiting period varies from insurer to insurer.
Also, there are certain health insurance plans that not just cover the hospitalization charges but also cover various other expenses such as medicines, tests, periodic health check-ups, ambulance costs, day-care surgeries, etc. This coverage definitely adds some ease to your pocket.
You also enjoy tax benefits wherein the health insurance premium that you pay for your parents is qualified for deduction under Section 80D.
Things to consider while buying a policy
Factors that one must consider while looking for a health insurance policy is selecting the right insurance amount, checking the network hospitals, seeing if the coverage is adequate as per the age of the family members, understanding the waiting period (if any).
Goyal adds, “One must also research on the claim settlement history of the insurer (from where the policy is to be purchased). Also, check if the plan comes with other additional factors such as maternity benefits, free medical check-ups, No Claim Bonus (NCB), co-payment option, etc.”
Points to consider while choosing the right policy: | elderly parents are more vulnerable to various health issues or illnesses. without a health insurance policy, it could leave a hole in your pocket. some plans cover hospitalization charges, tests, ambulance costs, day-care surgeries. if your parents have any kind of pre-existing diseases, those would also be covered. a policy can also cover maternity benefits, free medical check-ups, no claim bonus. | Positive |
https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/piramal-pharma-solutions-invests-around-usd-32-mn-to-expand-michigan-facility/articleshow/79621914.cms | New Delhi: Piramal Pharma Solutions on Tuesday said it is investing around USD 32 million (over Rs 235 crore) to expand its facility in Michigan , US, with additional capacity and new capabilities for the development and manufacturing of active pharmaceutical ingredients (APIs). The company is investing the amount in the facility to keep up with expected demand based on current forecasts, including potential new opportunities, Piramal Pharma Solutions said in a statement.The expansion is planned to be ready for customers beginning summer 2022. It is expected that the expansion will add around twenty new hires to the site, bringing the total headcount to more than 180 employees and further benefiting the local economy, it added."Piramal Pharma Solutions' Riverview facility has a well-earned reputation as the preeminent leader in high potency APIs, and this expansion is designed to ensure that we retain that position," Piramal Pharma Solutions CEO Peter DeYoung said.It enables the company to support its customers' immediate and long-term API needs, strengthens presence in North America, and enhances ability to serve patients around the world by delivering the active ingredients in a timely manner, he added.Piramal Pharma Solutions is a contract development and manufacturing organisation, offering end-to-end development and manufacturing solutions across the drug life cycle. | the expansion is planned to be ready for customers beginning summer 2022. it is expected that the expansion will add around twenty new hires to the site. the expansion is planned to be ready for customers beginning summer 2022. it is expected that the expansion will add around twenty new hires to the site. the expansion is planned to be ready for customers beginning summer 2022. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/etmarkets-survey-analyst-tips-on-how-to-invest-rs-1-lakh-this-diwali/articleshow/79144672.cms | Samvat 2076, the Hindu accounting calendar that ends on Diwali , was a tumultuous year for Indian stock investors. While Covid-19 jolted the financial markets in the first half of the year, liquidity measures taken by the governments and central banks later helped the market revive and climb a fresh record high on November 9.As the new Samvat year (2077) kicks off this week, analysts on Dalal Street are suggesting that investors should give more weightage to equity in portfolio allocation despite expensive valuations. A dozen of brokerages in an ETMarkets’ Diwali survey suggested going in for a diversified portfolio with an average of 40-70 per cent allocation to equity; 5-15 per cent to gold and 15-40 per cent to bonds.It means if you have to invest Rs 1 lakh this Diwali, Rs 40,000- 70,000 should go into equity and the rest to gold and fixed income assets.Samvat 2076 is going to end on a positive note. BSE benchmark Sensex advanced 9 per cent to 42,597 on November 9 from 39,058 last Diwali in October 2019. The survey highlighted that Sensex may rise to 47,000 by next Diwali, indicating a 10 per cent upside from its current level.Considering the prevailing market condition, Narendra Solanki, Head of Equity Research (Fundamental) at Anand Rathi Shares & Stock Brokers, said portfolio diversification usually depends on risk appetite of the investor. “However, assuming a median age of 35 years for an individual with own home, one can have a mix of 60-70 per cent in equities, 15-20 per cent in debt and 10-15 per cent in gold.”Gold prices have jumped 40 per cent to Rs 54,100 per 10 gm since last Diwali. On the other hand, the 10-year benchmark bond yield has declined to 5.88% from 6.69% on October 29 last year. There is an inverse relationship between bond prices and bond yield. Data available on Value Research showed debt long duration mutual funds have delivered an average return of over 12 per cent in last one year.AK Prabhakar, Head of Research, IDBI Capital Market, suggested 70 per cent allocation to equity and 20 per cent to bonds and 10 per cent to gold. Jyoti Roy, DVP Equity Strategist, Angel Broking suggested 60 per cent to equities for moderate risk-taking investors, with 30 per cent in bonds and 10 per cent in gold. For conservative investors, he advised 40 per cent allocation to equity and bonds and the rest to gold.For high net worth investors, Kotak Securities, Emkay Global Financial Services and Karvy Stock Broking also recommended 10-15 per cent allocation to real estate.“The risk-reward ratio is less favourable for equities after the recent rally. Equities and bonds could underperform, while gold and real estate could outperform in next one year. Massive paper printing will increase supply of currency going ahead while supply of physical assets will be restricted. Based on the demand-supply theory and excess liquidity chasing physical assets, we can expect the run for gold to continue and that of real estate to revive,” said Rusmik Oza, Executive Vice President (Head of Fundamental Research - PCG), Kotak Securities.In the equity space, Oza likes Bajaj Finserv with a price target of Rs 8,000, Bharti Airtel (Rs 710) and Bajaj Auto (Rs 3,900). He sees Nifty in the 12,500-13,200 range with a median target of 12,800. The 50-share index closed at 12,461 on Monday.G Chokkalingam, Founder, Equinomics Research and Advisory, advised avoiding real estate for the investment purpose unless it prices drop 10-to15 per cent. He advised 10 per cent allocation to gold, 40 per cent to fixed income securities like safe bonds and bank deposits and the balance 50 per cent to equities. | analysts suggest investors should give more weightage to equity in portfolio allocation. if you have to invest Rs 1 lakh this Diwali, Rs 40,000-70,000 should go into equity and the rest to gold and fixed income assets. Sensex advanced 9 per cent to 42,597 on November 9 from 39,058 last Diwali in October 2019. Sensex may rise to 47,000 by next Diwali, indicating a 10 per cent upside from its current level. | Positive |
https://www.businesstoday.in/current/corporate/saudi-arabia-based-pif-to-invest-rs-11367-crore-in-jio-platforms/story/407329.html | Saudi Arabia-based Public Investment Fund (PIF) will invest Rs 11,367 crore for a 2.32 per cent equity stake in Mukesh Ambani's Jio Platforms Limited on a fully diluted basis, making it the 11th company to do so in around two months. The investment values Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. With this investment, Jio Platforms has raised over Rs 1.15 lakh crore (Rs 115,693.95 crore) from leading global investors including Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR, Mubadala, ADIA, TPG and L Catterton, since April.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From Oil Economy, this relationship is now moving to strengthen India's new oil (data-driven) economy, as is evident from PIF's investment into Jio Platforms."
PIF is one of the largest and most impactful sovereign wealth funds in the world and acts as Saudi Arabia's main investment arm to deliver a strategy focused on achieving attractive financial returns and long-term value for it in line with Vision 2030. "We are delighted to be investing in an innovative business, which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth," Yasir Al-Rumayyan, Governor of PIF, said.
JPL was created as a subsidiary of RIL in October last year to bring together all digital and mobility businesses under one roof. The new entity has become the parent of Reliance Jio Infocomm and applications like MyJio, JioTV, JioCinema, JioNews and JioSaavn, besides content-generation ventures. Thus, the operating company Reliance Jio became a step-down subsidiary of RIL.
For making JPL debt-free, the parent company has infused Rs 1.08 lakh crore in it. They want to build JPL like Alibaba and Google, which claim high valuations in the stock markets. RIL has been using the cash flow from its flagship petroleum refining business to build the telecom and retail subsidiaries all these years. The Indian conglomerate has spent about Rs 4 lakh crore to build Reliance Jio.
Here's a timeline of Jio Platform's fundraising journey so far.
April 22: Facebook investment: The social media giant announced an investment of Rs 43,574 crore in Reliance Jio accounting for a 9.99% stake in the company's platforms.
The social media giant announced an investment of Rs 43,574 crore in Reliance Jio accounting for a 9.99% stake in the company's platforms. May 3: Silver Lake- The American private equity (PE) giant will pick a 1.15% stake in Reliance Jio with an investment of Rs 5,656 crore in its platforms.
The American private equity (PE) giant will pick a 1.15% stake in Reliance Jio with an investment of Rs 5,656 crore in its platforms. May 8: Vista Equity- The US-based private equity firm will pick a 2.32 per cent stake in RIL's Jio platforms for Rs 11,367 crore.
The US-based private equity firm will pick a 2.32 per cent stake in RIL's Jio platforms for Rs 11,367 crore. May 17: General Atlantic- The New York-headquartered PE firm announced an investment of Rs 6,598 crore in Reliance Jio for a 1.34% stake.
The New York-headquartered PE firm announced an investment of Rs 6,598 crore in Reliance Jio for a 1.34% stake. May 22: KKR- The US-based PE company will buy a 2.32% stake in Jio platforms for Rs 11,367 crore.
The US-based PE company will buy a 2.32% stake in Jio platforms for Rs 11,367 crore. June 5: Mubadala- The Abu Dhabi-based sovereign investor announced an equity infusion of Rs 9,093 in Reliance Jio on Friday in exchange for a 1.85% stake in the telecom arm of RIL.
The Abu Dhabi-based sovereign investor announced an equity infusion of Rs 9,093 in Reliance Jio on Friday in exchange for a 1.85% stake in the telecom arm of RIL. June 13: RIL on Saturday announced TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is the ninth investment for the company in the last seven weeks.
RIL on Saturday announced TPG will invest Rs 4,546.80 crore in Jio Platforms at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore. This is the ninth investment for the company in the last seven weeks. June 13: L Catterton, one of the world's largest consumer-focused private equity firms, will also invest Rs 1,894.50 crore in JPL. L Catterton's investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis.
L Catterton, one of the world's largest consumer-focused private equity firms, will also invest Rs 1,894.50 crore in JPL. L Catterton's investment will translate into a 0.39 per cent equity stake in Jio Platforms on a fully diluted basis. June 18: Saudi Arabia-based PIF decided to invest Rs 11,367 crore in JPL for a 2.32 per cent equity stake on a fully diluted basis, making it the 11th company to do so in around two months.
Also read: Mukesh Ambani's youngest son Anant debuts in Jio Platforms as director | 11th company to invest in Jio Platforms in around two months. Jio Platforms has raised over Rs 1.15 lakh crore from leading global investors. a 2.32 per cent equity stake is being held by the public investment fund. the investment value of Jio Platforms is Rs 4.91 lakh crore. a total of Rs 5.16 lakh crore is expected to be paid out by end of the year. | Positive |
https://www.financialexpress.com/economy/government-targeting-80-billion-jewellery-exports-in-next-five-years-official/1840429/ | The government is aiming at USD 80 billion of jewellery exports in the next five years from the present level of USD 40 billion, a senior official said on Thursday. The Centre also expects the jewellery industry to generate additional employment of 2 million, Rupa Dutta, Economic Advisor, Ministry of Commerce, said. The sector employs about 5 million people.
“Jewellery exports is targeted to touch USD 80 billion in the next five years. In the 2018-19 fiscal, the country exported USD 40 billion worth of jewellery,” she said.
Dutta said there has been decline in the growth of jewellery exports this fiscal owing to global slowdown. “We hope to maintain the level of exports at USD 40 billion in 2019-20, if not more,” she said, speaking at the ground breaking ceremony of eastern India’s first Common Facility Centre (CFC) here.
The jewellery industry is a huge employment generator, she said, adding, an additional job creation of 2 million is expected over the next five years. Dutta said CFCs for jewellery trade was envisaged in the 12th Five Year Plan, and this will be the sixth one in the country after Gujarat and Coimbatore.
Artisans will be able to access modern machines for designing and testing at this centre, the official said. Dutta said entire funding of the CFC, located at the Bowbazar cluster in the city, will come from the commerce ministry, and a local trade body will run and manage it. The CFC is likely to be operational by February. Chairman of Gem & Jewellery Export Promotion Council (GJEPC), Pramod Agrawal, said it has sanctioned an amount of Rs 5 crore for promotion of Indian jewellery in overseas markets. | the jewellery industry employs about 5 million people. the country exported USD 40 billion worth of jewellery in 2018-19. the government is aiming to reach USD 80 billion of jewellery exports in the next five years. the industry is a huge employment generator, says the economic advisor. the ground breaking ceremony of eastern india’s first common facility centre (CFC) is expected to be operational by February. | Positive |
https://www.financialexpress.com/india-news/officers-of-audit-and-accounts-service-guardians-of-public-trust-financial-prudence-says-president-ram-nath-kovind/1316270/ | Asserting that CAG reports play a pivotal part in enforcing accountability on the executive, President Ram Nath Kovind said Monday that officers of the Audit and Accounts Service are guardians of public trust and financial prudence. The president was addressing separate groups of officer trainees of the Indian Audit and Accounts Service, Indian Trade Service and Indian Information Service, who had called on him at Rashtrapati Bhavan here.
Addressing the officer trainees, Kovind said that the Audit and Accounts Service officers have a critical role in ensuring the accountability of the executive to the legislature. “The reports of the CAG (Comptroller and Auditor General), submitted to the legislature, play a pivotal part in enforcing accountability on the executive. Officers of the Audit and Accounts Service are guardians of public trust and financial prudence,” he said.
The president said that in today’s globalised world, the strength of a nation is assessed by the strength of its economy.”Nations compete for a share of global markets and trade. While we have done quite well in promoting our trade in the past two decades, there is a lot more to be achieved,” he said.
Kovind said, historically, India had a substantial share in global trade.”Today, our country’s share in global trade is around two per cent. The officers of the trade service too have an important role in ensuring that our country regains its position in the global trade order,” the president said.
Addressing those from the Indian Information Service, he said that despite the information age, there is still a large segment of population that lacks awareness about government programmes and welfare schemes from which they can benefit. “We must ensure that information about these programmes and schemes reaches citizens living in the remotest of places and the smallest of villages. It is here that officers of the Indian Information Service play an important role. It is for Indian Information Service officers to make the government’s outreach and communication relevant, timely, practical and effective,” Kovind said. | president says officers of the audit and accounts service are guardians of public trust. he says officers of the trade service too have an important role in restoring trade. despite the information age, there is still a large segment of population that lacks awareness. he says the strength of a nation is assessed by the strength of its economy. he says the country has done quite well in promoting trade in the past two decades. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/maharashtra-government-announces-rs-150-crore-compensation-package-for-onion-farmers/articleshow/67181594.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/rupee-trades-lower-at-71-77-per-dollar-4655491.html | Representative Image
The Indian rupee erased some of its losses but trading lower at 71.82 per dollar, with domestic equity market ended off high after Sensex hitting record high.
It opened lower by 12 paise at 71.83 per dollar on Wednesday versus previous close 71.71.
On November 19, the rupee recovered from the lows and ended higher by 13 paise at 71.71 against the US currency on the back of softening crude oil prices and gains in domestic equity markets.
At close, the Sensex was up 181.94 points at 40,651.64, while Nifty was up 59 points at 11,999.10.
Oil prices fell sharply on Tuesday on oversupply concerns, while a gauge of stocks across the globe rose for a seventh straight session after large overnight gains in Asia.
The dollar-rupee November contract on the NSE was at 71.75 in the previous session. Open interest increased 2.41% in the previous session, said ICICIdirect.
We expect the USDINR to find meet supply pressure at higher levels. Utilise upsides in the pair to initiate short positions, it added. | the rupee ended higher by 13 paise at 71.71 against the US currency. on the back of softening crude oil prices and gains in domestic equity markets. oil prices fell sharply on Tuesday on oversupply concerns. a gauge of stocks across the globe rose for a seventh straight session. the dollar-rupee November contract on the NSE was at 71.75 in the previous session. | Positive |
https://www.financialexpress.com/market/morgan-stanley-favours-icici-bank-tata-consulatncy-services-india-gdp-growth-to-be-zero/1956517/ | Global brokerage and research firm Morgan Stanley is bullish on two Indian stocks despite favouring China and Japan instead of the emerging markets such as India. The brokerage has termed both ICICI Bank and Tata Consultancy Services (TCS) shares as “high conviction ideas to own” while featuring them on its Global Emerging Market Focus List. ICICI Bank and TCS shares have outperformed the MSCI emerging markets index since the respective inclusion in the focus list. Morgan Stanley said that the global economy appears headed to its most severe recession in the post-war era but highlighted China and Japan as potential markets that could outperform the emerging markets.
“We think bottom-up analysts are only halfway through adjusting to this reality. With estimates likely to fall further — particularly in non-IT cyclicals — and valuations somewhat rich, we think markets are unlikely to sustain the recent rapid recovery,” Morgan Stanley said in a report. While there is still a 43.6% upside to ICICI Bank’s share price, according to Morgan Stanley’s estimates, TCS has already breached the target price P/E ratio of the stock is estimated to be better in 2020. Among sectors, Indian industrials is one sector where the brokerage firm is overweight.
MSCI EM in trouble but China, Japan favoured
Charting a weaker outlook for the MSCI emerging markets index, Morgan Stanley said that the index could go as low as 650 points, down 29% from the current levels. In the base case, however, the index will fall as far as 800 points or 12% from current levels. The best case would see the index jump 15% to 1,050 points. “Markets that show either rising corporate leverage into 2020 or relatively lower funding strength scores include Argentina, Colombia, South Africa, Turkey, and Thailand. By sector, higher leverage and weaker Altman Z-scores are seen in Transportation, Capital Goods, Utilities, Real Estate, and Telecoms,” the report said.
China and Japan have outperformed the emerging markets year-to-date and the same is expected to continue. Although Japan and China have their idiosyncratic risks such as the US-China trade tensions and Japan’s sector skew to old-economy cyclicals, Morgan Stanley said the secular drivers of both these markets are intact. The brokerage steered clear of the value vs growth stocks debate and recommended investors to remain neutral. “We are neutral Value versus Growth to balance the risk of valuation premia erosion against the fact there is no clear near-term catalyst for reversal. Meanwhile, we prefer Quality given funding risks and the importance of sustainable competitive advantage given unprecedented macro-economic volatility,” it said.
India’s GDP growth to be at ZERO
With the rapid recovery in the global economy that Morgan Stanley is expecting in 2021, helped by unprecedented policy easing and treatment of coronavirus, India is expected to be the fourth fastest-growing economy next year. The Philippines is expected to grow at 12.6% in 2021, followed by Malaysia at 9.6% and China at 9.2%. India’s GDP is estimated to grow at 7.7%, after registering no growth in 2020. | ICICI Bank and Tata Consultancy Services (TCS) are 'high conviction ideas to own' Morgan Stanley highlighted China and Japan as potential markets that could outperform the emerging markets. ICICI Bank has still a 43.6% upside to its share price, according to Morgan Stanley’s estimates. TCS has already breached the target price P/E ratio of the stock is estimated to be better in 2020. | Positive |
https://www.moneycontrol.com/news/business/trade-war-will-make-india-a-bigger-trading-manufacturing-hub-fm-arun-jaitley-2995641.html | Finance Minister Arun Jaitley
Finance Minister Arun Jaitley Friday said the ongoing trade war may have created “initial instability”, but will gradually open up opportunities for India as a bigger trading and manufacturing base.
Calling on businesses to adopt ethical practices, Jaitley said that entities should pay their due share of taxes as the Insolvency and Bankruptcy Code (IBC) will shut doors on ‘fly-by-night' operators.
Speaking at the annual session of PHD Chamber of Commerce, Jaitley said some global trends do “adversely affect” India, but going ahead they will open up avenues for the country to grow faster.
“The trade war initially created instability, but eventually may open up greater markets. They will open up India as a bigger trading and manufacturing base and, therefore, we must closely watch the situation as to when the challenge turns into an opportunity,” Jaitley said in his video conference address.
Experts say that the ongoing trade war between the US and China could make Indian products, like machinery, electrical equipment, vehicles and transport parts, chemicals, plastics and rubber products, competitive in the US markets.
Jaitley said the rising oil prices, too, pose a challenge for the economy, since India is a net importer of crude oil. India is 81 per cent dependent on imports to meet its oil needs.
India is the third-largest importer of crude oil, and rising international crude oil prices are inflating domestic transport fuel rates in a strong demand environment. Brent, the benchmark for half of world's oil, climbed to USD 80 per barrel from USD 71 in the last five weeks.
“Notwithstanding these challenges, I'm quite certain that in the days and years to come, there are great opportunities for India in order to grow,” the minister said.
Asking businesses to be ethical in their practices, Jaitley said post the IBC, doors will be shut on “fly-by-night” operators and those with ethical practices will find a much greater opportunity to continue their businesses.
“While free trade is allowed the emphasis also has to be on ethics of the business. Those who should be paying taxes must be paying taxes and the taxpayers should not be burdened with those who evade taxes. Therefore, one of the most ethical practices has to be to bring in those who evade taxes within the tax net,” the Minister said.
The IBC, Jaitley said, has imposed a new ethics on Indian businesses when you take money from lenders you have to service the debt, it can't be that the lenders spend sleepless night after lending money to Indian businesses.
“It will pay to be ethical - that is the kind of culture we are trying to introduce and that is the kind of culture Indian businesses should encourage,” he said. | finance minister says trade war between the US and China will open up opportunities for India as a bigger trading and manufacturing base. he said entities should pay their due share of taxes as the insolvency and bankruptcy code (ibc) will shut doors on ‘fly-by-night’ operators. he said some global trends do ‘adversely affect’ India, but going ahead they will open up avenues for the country to grow faster. | Positive |
http://www.moneycontrol.com/news/business/moneycontrol-research/fiem-industries-auto-led-lights-business-to-be-a-game-changer-in-the-long-run-2486117.html | live bse live
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Nitin AgrawalMoneycontrol Research
FIEM Industries (FIEM) is a lighting solutions provider to automobiles catering to two-wheeler (2W) segment. With its market leadership, marquee clients, focus on developing in-house technologically advanced products and adoption of LED-based products, the company should witness decent earnings traction despite the drag from LED Luminaries business.
The business should remain unaffected by EV disruption. Also, the stock is trading at reasonable valuations that beckons investor’s attention.
The business – provides end to end lightening solutions
FIEM is one of the leading manufacturers of automotive lighting solutions and has been the front-runner as it was the first one to introduce LED lights for two-wheelers. In addition to automotive lighting solutions, the company also manufactures rear view mirrors, sheet metals parts and plastic components. The company has also ventured into LED luminaries for indoor and outdoor applications and Integrated Passenger Information system (IPIS) for railways and buses.
Strong clientele
The company generates most of its business from two-wheeler segment of the automotive industry. FIEM boasts of having marquee clients in its kitty and services almost 90 percent of OEMs (original equipment manufacturers) in India. Apart from this, the company’s products have been well accepted in foreign markets and it is the only Indian company supplying lighting products to Harley Davidson and Honda Japan.
The company also has formidable clients in LED luminaries and IPIS system. Indian Railways is the big customer for the company in IPIS systems. DTC Buses, Haryana Roadways, U.P. Roadways, Gujarat State Road Transport, Delhi Fire Service, CRPF, Hospitals & Public Places are other notable clients within IPIS space.
Well placed to ride on scooters – very high growth segment
In terms of percentage of automotive segment revenues, Honda Motorcycle is the largest client with 45 percent share followed by TVS Motors with 24 percent share. These two customers are the strongest players in fast-growing scooter segment within 2W space. This takes the company in sweet-spot to take the advantage of upcoming wave of growth in scooter segment.
Ahead of competition – in-house R&D
FIEM has strong in-house research and development (R&D) center and has become India’s First NABL Accredited Lab for Testing of Automotive Lamps. Through the strong focus on R&D, the company was the first to supply LED-based lamps for a two-wheeler model.
In fact, unlike other players in the industry who have sourced technology from outside and pay the royalty, FIEM does not have that obligation, which positively impacts its financial performance.
LED – a game changer
The increasing adoption of LEDs by the original manufacturers would offer great opportunities for FIEM as LEDs require technical expertise and the company’s in-house R&D supports it.
As per the management, LED products are expensive compared to the conventional products and earn better margin for the company. The wider adoption of LEDs unlocks huge potential for the company both in terms of sales growth and margin expansion. The management indicated that despite higher prices, the OEMs are willing to shift to these products as these are more efficient products and improve the styling appearance of vehicles.
While the government’s decision to make ‘Automatic Headlamp On (AHO)’ in two-wheelers from 2017is not the energy efficient way, LED based DRLs (Day Running Lights) are more energy efficient. Consequently, this has been adopted by a few models. Increasing adoption of LED DRLs in other models would unlock huge potential for the company.
Also, BS VI norms to be implemented by 2020 would require vehicles to be more energy efficient which would lead to the adoption of LEDs as a lot of energy would be saved by those lighting products.
Unaffected by move towards EV
FIEM is likely to remain unaffected by the EV disruption, going forward, as LED lighting products, being more energy efficient, are going to be used in EVs.
The moot question for investors is to know about the pain point of the company – LED Luminaries business?
LED Luminaires – pain to continue
India is still in nascent stage in terms of LED adoption and the industry is characterized by fragmented competition and low entry barriers.
Energy Efficiency Services Limited (EESL), the nodal Indian agency actively propagating and implementing the replacement of conventional street lighting products with LED alternatives, provides a huge opportunity for the company. However, low entry barriers coupled with fragmented competition has resulted in a price war, thereby hurting the financial performance of the company.
Fiem’s revenue from this segment has fallen by 51 percent in FY17 and EBITDA margin came in at around 5.2 percent. The management believes that it will take some time for the LED business to stabilize.
We feel that on the back of adoption of LED lighting for automobiles even if the pain continues in LED luminaries, the overall financials will start looking up.
Strong Financial performance except for FY17
The company’s net sales witnessed a growth of 24.1 percent compounded annually over a period of FY12-17 and its EBITDA and PAT recorded a growth of 21.7 percent and 16.2 percent over the same period. In FY17, however, the company had margin contraction because of the low EBITDA margin of LED luminaries segment.
In terms of return ratios, RoE and RoCE average around 19.13 percent and 20.40 percent over FY12-17, respectively. In FY17, the company witnessed contraction in return ratios on the back of poor performance from LED luminaries business and higher liquidity in the Balance Sheet because of money raised through qualified institutional placement (QIP).
Going forward, we expect the return profile to improve on the back of high margin LED lighting business.
In terms of valuation, the company is trading at 21.3 and 16.0 times FY19 and FY20 projected earnings.
Peer analysis
Peer analysis suggests that the FIEM is currently trading at a discount compared to the average multiple of its peers.
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For more research articles, visit our Moneycontrol Research Page. | FIEM is a lighting solutions provider to automobiles catering to two-wheeler (2W) segment. the company should witness decent earnings traction despite the drag from LED Luminaries business. the company has also ventured into LED luminaries for indoor and outdoor applications and Integrated Passenger Information system (IPIS) for railways and buses. the stock is trading at reasonable valuations that beckons investor’s attention. | Positive |
https://www.livemint.com/companies/news/household-expenditure-on-fmcg-went-up-4-3-in-march-may-kantar-report-11594687083328.html | Household expenditure on fast-moving consumer goods (FMCG) rose between March and May, compared to the year-ago period, something that appears counter-intuitive during the prolonged nationwide lockdown, according to a report by data, insights and consulting firm Kantar.
Expenditure on food, health and homecare products by Indian households grew 4.3% during the covid-19-induced lockdown. The pandemic and the fear of catching the infection, led to the number of trips to grocery stores decline from 34.3 in March to 30.5 in May, indicating pantry loading, Kantar added.
Fewer trips, however, translated into bigger ‘trip size’, described as volume bought per trip, resulting in value growth for companies.
“Households definitely spent more on FMCG products during the lockdown as compared to last year. The money was spent on food, beverages, health and hygiene, and even homecare products," said K. Ramakrishnan, manging director, worldpanel division, Kantar. Personal care categories, however, took a hit both in urban and rural India, the report said.
Among packaged foods, Parle Products, the maker of Parle-G biscuits, reported a surge in sales during the lockdown. The company’s market share in the packaged biscuits category expanded by 5 percentage points and it registered better-than-expected growth from March to May, Mayank Shah, category head, Parle Products, said earlier.
Consumption was high as people bought more during the lockdown and hoarded food items.
Britannia Industries, too, sold more biscuit packs in April and May, posting 20% and 28% growth in sales, respectively. This was on account of increased in-home consumption of the company’s brands.
Marico Ltd’s Saffola cooking oil also registered strong growth during the quarter as consumers cooked more at home during the lockdown. Other FMCG firms also saw shoppers hoarding large packs of staples and homecare products during the first phase of the nationwide lockdown, Adani Wimar’s deputy chief executive officer, Angshu Mallick, had said in an interview earlier.
Initially, consumers were stockpiling, so bulk packs did better. Later, the company’s ratio of consumer packs and bulk packs changed from 65:35 to 85:15. “This is because we are seeing more people buying smaller packs and also because restaurants and hotels are closed," he added.
“While FMCG companies saw increase in home consumption of staples and other essentials, for them the revenue from the hospitality segment or HORECA (hotel, restaurants, cafes) remained nil," said Ramakrishnan.
Interestingly, experimentation among categories dipped during the pandemic as consumers stuck to basic needs; trying out limited new brands in hair oil, washing powder and cooking oil categories. This was especially true for urban markets.
The drop was triggered by a combination of factors such as an initial shortage of products in the market, consumer apprehension to spending more time inside a store, and consumers buying only those packaged goods that are necessary during the long hours spent at home currently.
For instance, the number of categories bought between March to May in personal care dipped 15% compared to the year-ago period; while those in household care were up 20% in the same period showing consumer preference for items such as floor, toilet and utensil cleaners.
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Topics | household expenditure on fast-moving consumer goods (FMCG) rose 4.3% during the covid-19-induced lockdown. the number of trips to grocery stores declined from 34.3 in march to 30.5 in may. Among packaged foods, Parle Products, the maker of Parle-G biscuits, reported a surge in sales during the lockdown. consumer spending on food, health and homecare products grew 4.3% during the lockdown. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/zydus-wellness-completes-acquisition-of-heinz-india/articleshow/67761812.cms | New Delhi: Consumer healthcare firm Zydus Wellness on Wednesday announced to complete its Rs 4,595-crore acquisition of Heinz India's consumer wellness business, which includes popular brands Complan and Glucon D.The acquisition was announced on October 24 last year when the company had entered into a definitive agreement to acquire Heinz India's business comprising Complan, Glucon D, Nycil and Sampriti Ghee brands along with its two large manufacturing facilities.Zydus Wellness Chairman Sharvil Patel said: "Closing of this transaction represents a new and exciting chapter for Zydus Wellness as we continue our journey of transformation into a leading player in the wellness domain."He further said: "Together we look forward to leveraging the strengths of the legacy brands and our capabilities to merge science and innovation and drive value for our consumers and our stakeholders."Heinz India, a subsidiary of the US-based Kraft Heinz , has a distribution network of over 800 and over 20,000 wholesalers covering 29 states.With brands such as Sugar Free, EverYuth and Nutralite, Zydus Wellness has a strong brand equity in the food, nutrition and skin care markets, the company said."The acquired brands have a strong market presence and a legacy of over 50 years," the company said. Cadila Healthcare holds a majority stake in Zydus Wellness. | Zydus Wellness has completed its acquisition of Heinz India's wellness business. the acquisition includes popular brands Complan and Glucon D. Zydus Wellness chairman: "Closing of this transaction represents a new and exciting chapter" the company has a strong brand equity in the food, nutrition and skin care markets. a subsidiary of the US-based Kraft Heinz has a distribution network of over 800 and over 20,000 wholesalers covering 29 states. | Positive |
https://www.livemint.com/industry/manufacturing/consumer-durable-cos-bet-on-small-towns-for-revival-11593796450477.html | Small towns and parts of rural India could hold the key to reviving short-term demand as forecast of a normal monsoon and enhanced government schemes are likely to encourage households in these markets to spend on low-ticket consumer electronics, said consumer durable companies.
These companies, which tend to rely largely on urban markets for selling large appliances, see a strong potential for direct cool refrigerators, semi-automatic washing machines, fans, coolers and TVs in small towns and villages.
“In the current context, there are multiple factors that are signalling a faster revival of the rural markets," said Ajay Sharma, senior vice-president, Usha International, which earns 15-20% of its business from rural markets. A good monsoon and a good harvest of primary staple crops will boost rural incomes. Hence, “the rural market will start recovering earlier compared to the urban market", he said.
Usha International is seeing demand from small towns and rural markets for products such as fans, sewing machines, home and kitchen appliances, and water pumps.
With rural areas comparatively less affected by the covid-19 pandemic, additional government allocation towards the rural employment guarantee programme, and reverse migration to villages could also support the rural economy. Analysts expect urban markets to slow down due to job losses and salary cuts.
“If you look at the economic slump caused by the pandemic, rural markets will definitely see a faster recovery in the short term because of the direct impact of a good monsoon," said Manish Sharma, president and chief executive, Panasonic India and South Asia. This “will put more money in the hands of farmers", he said.
The company expects a 15% year-on-year growth in rural markets even as urban markets will stay flat.
It expects to sell more semi-automatic washing machines and direct cool refrigerators in smaller cities.
Havells India Ltd also expects villages to do better as big cities take time to deliver sales growth.
“We hope that the curve flattens and believe that urban markets will take a couple of months at least to come back on track. However, rural markets are likely to perform much better in the immediate future as they are recovering faster," said Prag Bhatnagar, senior vice-president, Havells India.
The lockdown hit sales across India as shops remained closed and people stayed indoors. Some firms are reporting signs of pent-up demand following the easing of curbs since May. In urban markets, this was especially true for categories such as laptops, tablets, and cooling products as people spent more time indoors and worked from home.
“April was a washout, but we witnessed an improvement in demand during May and June. The cooking appliances segment has seen significant growth in mass and mid segments," said Sharma of Usha International.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | rural markets could see a faster recovery in the short term. forecast of a normal monsoon and a good harvest of primary staple crops will boost rural incomes. analysts expect urban markets to slow down due to job losses and salary cuts. rural markets are likely to perform much better in the immediate future. a good monsoon and a good harvest of primary staple crops will boost rural incomes. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/1-trillion-market-cap-and-counting-india-is-just-showing-the-way/articleshow/68699690.cms | Bloomberg
Bloomberg
The biggest quarterly foreign inflow in six years. About $370 billion in value gained. And now, India ’s stock market just hit a record high -- its first in seven months.The equity benchmark index for the world’s second-largest emerging market rose 0.5 per cent on Tuesday, closing above the 38,896.63 level that was required to make the milestone official. India is the first among markets valued at more than a $1 trillion to hit a peak this year.After languishing in their worst run of losses in almost eight years, Indian equities posted the world’s biggest rally last month. Worries over rising oil prices, election uncertainty and tensions over Kashmir have faded. Instead, expectations that Prime Minister Narendra Modi will get re-elected, bets that company profits will recover and a dovish shift in central-bank policy in both the US and India have made investors turn positive.The icing on the cake was bullish views from strategists at foreign research firms. Last week, BNP Paribas SA analyst Manishi Raychaudhuri upgraded Indian stocks to overweight, citing stability in corporate-profit growth and indicating that banks’ asset-quality problems are now seen as “a thing of the past.” This came after Goldman Sachs Group Inc said that stocks will rally in the lead-up to the vote and raised equities to the equivalent of a buy rating.There are certainly more events for investors to either buy or sell India stocks for the rest of the year: Results from India’s general elections next month, hints on where corporate profits will go, US-China trade talks and big moves in oil prices.“The first event is the largest democratic elections globally and in that sense, investors will be looking forward to the formation of a stable government,” said Chockalingam Narayanan, head of equity research at BNP Paribas Asset Management Co in Mumbai.Foreign inflows have seen a resurgence as global funds purchased a net $8.4 billion of Indian shares in the first three months of the year. That puts the country on track for the biggest annual flood of overseas capital since 2014, when Modi first became prime minister and the S&P BSE Sensex Index hit 54 record highs.General elections tend to be an “important influencer” of short-term returns and foreign flows into the market, BNP’s Raychaudhuri said in his note. If investors get a “market-friendly” government, the overseas investment euphoria will continue for a month or two and will then fade by the third month after the vote, he said.Some say this influx may have been too rapid in such a short time frame.“We believe this pace of inflows will moderate,” said Sampath Reddy, chief investment officer at Bajaj Allianz Life Insurance Co. “Last month was exceptionally good, but that can’t be the run rate for the months ahead.”Neelkanth Mishra, India equities strategist at Credit Suisse Group AG in Mumbai, says such inflows into the nation’s stocks may not be sustainable, even if the global economic momentum turns positive as China stabilizes and central banks don’t change their stance. That’s because Credit Suisse doesn’t see growth in India recovering “any time soon as monetary tightness persists,” according to a note.For the past three weeks, both the stock market and a gauge tracking its volatility rose in tandem, a rare occurrence that indicates signs of hedging. The NSE Nifty 50 Index and India VIX Index, which tend to go opposite ways, have moved in the same direction five weeks already this year, on track for the highest proportion since 2014.Not everyone’s concerned.“The market is positively biased and the momentum is likely to continue on the back of expectations of a stable government coming to power,” said Jay Thakkar, head of technical research at Mumbai-based Anand Rathi Share & Stock Brokers. “We expect the NSE Nifty 50 to be in a range of 11,200-12,500 over the next three to six months with intermittent sessions of volatility in the run-up to the elections.” | india's stock market hit a record high -- its first in seven months. the equity benchmark index rose 0.5 per cent on thursday. india is the first among markets valued at more than a $1 trillion to hit a peak this year. analysts expect that prime minister Narendra Modi will get re-elected. the icing on the cake was bullish views from strategists at foreign research firms. | Positive |
https://www.financialexpress.com/industry/mukesh-ambani-reliance-jio-india-global-investments-fdi-asian-deals-digital-economy/2018853/ | Mukesh Ambani’s ambitious courtship of international investors has helped turn India into a rare bright spot for dealmaking in 2020, a shift that bankers say is likely to continue as the battle for the country’s digital economy heats up.
Thanks in large part to $15 billion of investments in Ambani’s technology venture from the likes of Facebook Inc. and Silver Lake Partners, India accounts for more than 12% of announced deals in the Asia Pacific region so far this year, the highest ratio since at least 1998. The country’s tally has jumped 18% from a year ago to $55.3 billion, defying an 18% slide for the region, according to data compiled by Bloomberg.
With half a billion Internet users and growing, India is witnessing pitched battles in everything from e-commerce and content streaming to messaging and digital payments — similar to the early days of China’s digital boom. The sector’s importance has only increased this year as the Covid-19 pandemic pushed India to impose the world’s biggest lockdown in late March.
“India has become one of the busiest markets for M&A in Asia,” said Kerwin Clayton, co-head of M&A for Asia Pacific at JPMorgan Chase & Co. “Global companies and investment funds are pondering more options to enter India, in a similar way to what happened with China a decade or so ago.”
Billionaire Ambani’s Jio Platforms Ltd., which houses movie, music apps and India’s biggest wireless carrier, is front and center in the surge of activity. The latest to join Jio’s list of investors is an arm of computer chip giant Intel Corp., propelling its valuation to $65 billion.
“There was significant deal activity in the tech space already but nothing of the speed and quantum we witnessed in Jio Platforms,” said Aalok Shah, managing director at Rothschild & Co. “Jio Platforms is a unique opportunity which attracted significant investor interest.”
The health care and infrastructure sectors are also going to see a surge in investment, Shah said. Sectors such as industrials and travel that have borne the brunt of the Covid-19 pandemic will be hit with divestment, and distressed asset sales will take place, he said.
The pandemic has also put pressure on the country’s long-suffering financial sector. Indian companies, including banks, are more likely to raise funds in the markets to boslter their buffers, according to Srinivas Balasubramaniam, a senior partner at KPMG India. ICICI Bank Ltd. said Wednesday that it plans to raise as much as 150 billion rupees ($2 billion), while Axis Bank Ltd. announced plans last week to raise as much as $2 billion.
“A consolidation of financial services will start once the capital raising is done and dusted,” Balasubramaniam said. “The current economic slowdown coupled with the pandemic is likely to see the central bank force the hand of banks that have large subsidiaries and regulate them to dilute their stakes.”
China Factor
Recent political tensions between India and China have cast a heavy pall over dealmaking prospects between the neighboring countries. Even before their worst military clashes in 45 years, the Indian government drew China’s ire with its move in April to tighten foreign investment rules on countries it shares a border with.
Chinese companies pledged to invest about $579 million in Indian companies in the first six months of this year, down from $1.5 billion for the same period in 2019, according to data compiled by Bloomberg.
Even as both countries have agreed to deescalate tensions on their disputed border, bankers are expecting further slowdown of Chinese investments for the rest of the year. Yet some are taking the long view.
“There could be delays in new investments or existing investments being topped up this fiscal year,” Balasubramaniam said, adding that the onset of winter will help limit further clashes over territory. “Chinese investments will likely pick up momentum late next year given the current border standoff.”
In the meantime, global investors including private equity firms are driving transactions with India.
KKR & Co. said last week it will acquire a controlling stake in J.B. Chemicals and Pharmaceuticals Ltd., while Carlyle Group plans to purchase a 20% stake in Indian billionaire Ajay Piramal’s pharmaceutical business.
The country’s antitrust regulator recently approved Facebook’s $5.7 billion investment in Jio, paving the way for a slew of smaller investments in the digital services business. Separately, India is considering a plan to raise as much as 200 billion rupees by selling stakes in the world’s largest coal producer and a bank, Bloomberg News reported on Thursday.
“We are already witnessing an increased momentum in deal activity and it is likely to accelerate over the next six months,” Rothschild’s Shah said. | the country's tally has jumped 18% from a year ago to $55.3 billion. the country is witnessing pitched battles in everything from e-commerce and content streaming to messaging and digital payments. the latest to join Jio's list of investors is an arm of computer chip giant Intel Corp., propelling its valuation to $65 billion. | Positive |
https://www.moneycontrol.com/news/india/coronavirus-pandemic-pm-for-new-structural-reforms-to-revive-economy-5215751.html | Prime Minister Narendra Modi on Saturday underlined the need for new structural reforms and expedite work on infrastructure projects to revive the economy reeling under the impact of coronavirus-induced lockdown.
He made these observations during a series of meetings held on Saturday to discuss strategies and interventions in the financial sector as well as structural reforms to spur growth and welfare in the current context.
The series of meetings with key Cabinet ministers, officials of economic ministries is likely to culminate into a second stimulus package for sectors, including MSME and the farm sector, hit hard by the outbreak of COVID-19 pandemic.
Dwelling on the issue of welfare of workers and the common man, the Prime Minister pointed out the need to generate gainful employment opportunities by helping businesses overcome difficulties due to disruptions caused by COVID-19, an official statement said.
The Prime Minister also stressed on the need to strengthen major structural reforms undertaken in the past and new structural reforms in the areas of corporate governance, credit markets and infrastructure sectors were also discussed, it said.
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He also stressed the need to take speedy measures to commence work on new infrastructure projects and speed up works in the infrastructure sector so as to make up for the time lost in COVID-19.
He wanted the projects taken up under the National Infrastructure Pipeline (NIP) be reviewed at the highest level frequently to avoid time delays and enable the creation of jobs.
The task force on NIP has recently submitted a report which projected a staggering Rs 111 lakh crore investment in the infrastructure sector by 2024-25.
The statement further said that it was also discussed that the reform initiatives undertaken by the various Ministries should continue unabated and the action should be taken in a time-bound manner to remove any obstacles to investment flows and capital formation.
The meeting was attended by the Home Minister, the Finance Minister, Secretaries of the Ministry of Finance along with senior officials of the Government of India.
At a meeting with the finance minister and officials, the prime minister discussed strategies and interventions to support MSMEs and farmers, enhance liquidity and strengthen credit flows. He also discussed ways and means to ensure financial stability in the wake of COVID-19 and measures taken to enable businesses to recover quickly from the impacts.
Earlier in the day, MSME Minister Nitin Gadkari said that his ministry has suggested a relief package to the prime minister and the finance minister for the medium, small and micro sector and exuded confidence that an announcement would be made soon.
"Chaired a meeting on strengthening our MSME sector, which plays a pivotal role in economic development. There were extensive discussions on ways to make this sector more vibrant, attractive and ready to embrace new opportunities," the prime minister said in a tweet after the meeting.
The Prime Minister in another tweet said, "Held a meeting to discuss subjects related to the financial world, including structural reforms that will give a boost to growth and public welfare. We reviewed strategies to support the MSME sector and ensure liquidity & credit supply."
The central government is focused on ensuring welfare of workers, helping businesses overcome the difficulties arising in the wake of COVID-19, reforms in corporate governance, credit markets and the infra sector, he said.
During another meeting concerning the farm sector, various reforms in agriculture marketing, management of marketable surplus, access of farmers to institutional credit and freeing the agriculture sector of various restrictions with appropriate backing of the statute were discussed.
The focus was on making strategic interventions in the existing marketing eco-system and bringing appropriate reforms in the context of rapid agricultural development, an official statement said.
"Concessional credit flow to strengthen agriculture infrastructure, special Kisan Credit Card saturation drive for PM-Kisan beneficiaries and facilitating inter and intra-state trade of agriculture produce to ensure the fairest return to farmer were some of the important areas covered. Developing e-NAM into a platform of platforms to enable e-commerce was one of the important topics of discussion," it said.
A discussion also emanated on the possibilities of the uniform statutory framework in the country to facilitate new ways for farming which will infuse capital and technology in agrarian economy, it said, adding, the pros and cons of bio-technological developments in crops or enhancement of productivity and reduction in input costs were also deliberated.
During the deliberations, each ministry made recommendations and possible steps to be taken in the short run to prop up the sector administered by them.
After a detailed review of every sector, a relief and stimulus package will be worked out, sources said.
The prime minister already had meetings with different ministries including civil aviation, labour and power on Friday. He had detailed deliberation with commerce and industry ministry among others on Thursday.
To mitigate hardships faced by the bottom of the pyramid, the government in late March had announced a Rs 1.7 lakh crore stimulus package comprising free foodgrains and cooking gas to poor and cash doles to poor women and elderly. | prime minister Narendra Modi meets with key cabinet ministers to discuss economic reforms. he also urges businesses to overcome disruptions caused by COVID-19. a vaccine works by mimicking a natural infection. a vaccine also helps quickly build herd immunity to put an end to the pandemic. a chinese government has urged the government to take steps to combat the virus. | Positive |
https://economictimes.indiatimes.com/news/economy/foreign-trade/china-miffed-at-et-article-that-flagged-its-protectionist-policies/articleshow/62440961.cms | Beijing's protectionist policies that led to the creation of local digital giants such as Sina Weibo are common knowledge. But China does not like to be identified as a protectionist regime.Chinese state-run media outlethas taken exception to an ET article that pointed out that "China's digital protectionism, and a US retreat, can be analogous to India 's victory in Globalisation 4.0"."Once synonymous with knock-off goods, China now inspires Silicon Valley to mimic its on-demand bike rental services. But its digital economy is a testament to well-worn 20th-century statecraft. Protectionism has meant Chinese payment services like Tenpay and Alipay having over 800 million users and a combined market share of nearly 90%. The microblogging site Sina Weibo has 500 million Chinese users — more than Twitter's global user base. The story repeats itself in search (Baidu), local e-commerce (Alibaba, JD.com), local commutes (Didi Dache, Kaundi Dache) and travel and accommodation (Ctrip, Tujia)," said the ET article by Samir Saran, the vice-president of Observer Research Foundation.An article in Global Times takes exception to Saran's description which is in fact a general perception of the Chinese economy all over the world."There is much to admire about China's rise as a technology and innovation power to become a rival of the US on many fronts. The admiration could well prompt other countries, particularly China's neighbor that is pushing for the Digital India initiative, to consider ideas on duplicating China's success. But it could be misleading if the interpretation of the "China story" is distorted, as seen in a recent article in the India-based Economic Times, which mistakenly concluded that China's digital protectionism "can be analogous to India's victory in Globalization 4.0," the article says.It argues that the success of Chinese digital giants is actually due to opening up of the economy and reforms instead of protectionism China's arm-twisting of Western tech companies has become a common knowledge. Not long ago, China did little to control the global narrative about its authoritarian regime. Now that it is emerging as a world power and sees itself leading the world in many fields, it needs to create a positive image, however conflicting it is with the reality of the Chinese state. That's why it has begun taking exception to descriptions that reveal the authoritarian nature of the Chinese regime. | a recent article in the india-based economic paper argues that China's digital protectionism can be analogous to India's victory in Globalisation 4.0. the article says that the success of Chinese digital giants is due to opening up of the economy and reforms instead of protectionism. the article is a reference to the chinese digital economy, which is a testament to well-worn 20th-century statecraft. | Positive |
https://economictimes.indiatimes.com/markets/stocks/recos/buy-cadila-healthcare-target-price-rs-311-nirmal-bang/articleshow/74885263.cms | Normal Bang has given a buy rating to Cadila Healthcare with a target price of Rs 311, an upside of 21.1 per cent on a CMP of Rs 257. According to the brokerage, Cadila Healthcare’s performance in the fourth quarter of FY20 should be aided by a growth in domestic business and a seasonally stronger wellness business.The share price of the company moved up by 0.16 per cent from its previous close of Rs 252.70. The last traded price is Rs 253.10. Incorporated in 1995, Cadila Healthcare has a market cap of Rs 25880.21 crore.The wellness business growth may be lower than normal due to demand disruption led by Covid-19 lockdown. In the US - their key products Lialda and Levorphanol witnessed the impact of additional competition which should be offset by volumes in Tamiflu suspension and appreciation in US dollar. The brokerage maintains its FY21 and FY22 estimates. It has rolled over to FY22 EPS and arrived at a target price of Rs 311 based on a target PE multiple of 20 times. Nirmal Bang expects the fourth quarter FY20 earnings to be monotonous for most pharma companies. It does not see a meaningful adverse impact of Covid-19 lockdown on earnings. With China resuming supplies of raw materials, potential disruption in manufacturing is now no longer a concern.The India pharma market is expected to show high single digit growth. In the US, marginal benefit could come from dollar appreciation and potential increase in stocking at the wholesaler level which should be offset by currency depreciation in emerging markets due to declining crude prices.For the quarter ended December 31, 2019, the company reported consolidated sales of Rs 3534.50 crore, up 8.95 per cent from last quarter sales of Rs 3244.20 crore and up 0.52 per cent from last year's same quarter sales of Rs 3516.10 crore. The company reported net profit after tax of Rs 364.40 crore in the latest quarter. | normal Bang has given a buy rating to Cadila Healthcare with a target price of Rs 311, an upside of 21.1 per cent on a CMP of Rs 257. the company's performance in the fourth quarter of FY20 should be aided by a growth in domestic business and a seasonally stronger wellness business. the brokerage maintains its FY21 and FY22 estimates. | Positive |
https://economictimes.indiatimes.com/markets/commodities/news/gold-falls-more-than-1-as-investors-resume-cash-stockpiling/articleshow/74703965.cms | The festive month of Diwali brought a much-needed boost in online shopping after a muted start to the year in the first half. Ecommerce platforms, retailers and online sellers reported a steady uptick in sales with categories like electronics, food and grocery, and jewellery reporting double digit growth over last year.
Supreme Court (SC) order allowing bankruptcy proceedings against personal guarantors of loans to defaulter companies will open up a new window of recovery, potentially multiplying banks’ realizations.
Samvat 2080 started on a steady note for investors with India’s stock benchmarks gaining over half a per cent in the special 60-minute Muhurat trading session on Sunday evening to mark the start of the traditional Hindu new year.
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Top Trending Stocks: Sensex Today Live | ecommerce platforms, retailers and online sellers reported a steady uptick in sales. categories like electronics, food and grocery, and jewellery reported double digit growth over last year. Sensex and nifty gained over half a per cent in the special 60-minute muhurat trading session on Sunday evening. Sensex and nifty are the most traded stocks in the world. | Positive |
https://www.moneycontrol.com/news/business/sun-pharma-hikma-ink-exclusive-pact-for-plaque-psoriasis-drug-for-mena-region-5406181.html | live bse live
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Drug major Sun Pharma on Monday said it has entered into an exclusive licensing and distribution agreement with Hikma Pharmaceuticals for plaque psoriasis medicine, Ilumya, for the Middle East and North Africa (MENA) region.
One of the company's wholly-owned subsidiaries and Hikma Pharmaceuticals have entered into the agreement for Ilumya, Sun Pharma said in a filing to BSE.
Under the terms of the licensing agreement, Hikma will be responsible for the registration and commercialisation of the product in all MENA markets and Sun Pharma will be responsible for product supply, it added.
"Sun Pharma is eligible for upfront and milestone payments from Hikma. The term of this agreement is 15 years from first sale, with two years' automatic renewal periods," the filing said.
Sun Pharma, however, did not provide any financial details of the agreement.
"Hikma's strong presence in the MENA region will enable access to a new treatment option for people who are unable to manage their moderate-to-severe plaque psoriasis," Sun Pharma Emerging Markets Senior VP Aalok Shanghvi said.
Ilumya (tildrakizumab) is an United States Food and Drug Administration (USFDA)-approved innovative monoclonal antibody used for the treatment of adults with moderate-to-severe plaque psoriasis who are candidates for systemic therapy or phototherapy, Sun Pharma said.
Shares of Sun Pharma were trading at Rs 478.55 per scrip on BSE, down 0.26 percent from their previous close. | a subsidiary of the company and Hikma Pharmaceuticals have entered into the agreement. the agreement covers the MENA region. the term of the agreement is 15 years from first sale. the drug is an innovative monoclonal antibody used for the treatment of adults with plaque psoriasis. the united states has approved the drug. a spokesman for the company said the agreement is "a significant step forward" | Positive |
https://www.financialexpress.com/industry/realtors-say-rbi-decisions-to-boost-liquidity-seek-quick-transmission/1911323/ | The RBI’s decision to cut key rates and give three-month moratorium on all term loans will boost liquidity and ease debt pressure, provided banks pass on these benefits to customers quickly, according to property developers and consultants. The RBI cut repo rate to 4.4 per cent and reduced the cash reserve ratio maintained by the bank by 100 basis points. The reverse repo rate was cut by 90 bps to 4 per cent.
Commenting on the development, CREDAI Chairman Jaxay Shah said, “The economy is going through hard times. The decisions by RBI Governor today is a much awaited comprehensive package to ease the burden of all financial classes across the nation.” “We are assuming that the moratorium covers all home loans, auto loans and personal loans of any nature. It’s very important that the hard working tax paying middle income segment of our society is provided this flexibility,” he added.
NAREDCO President Niranjan Hiranandani said the RBI’s move to pump fresh liquidity in the system will certainly help to mitigate the stressed cash flow and debt pressure in the economic system. “The success to masterstroke announcement by RBI will be in quick transmission of these liquidity tools down the line to uplift the appetite among the India Inc to notch up the economic revival,” he added.
Anarock Chairman Anuj Puri said RBI’s move will push credit flow into all industries reeling under the impact of the coronavirus. “Given this time period, RBI will ensure that the benefit of the rate cut is directly passed on to actual consumers, which could eventually translate into more home loan takers,” he said. The moratorium of three months of EMIs on all outstanding loans will be a major relief to all concerned stakeholders.
“All in all, this big-bang announcement by the RBI will benefit all industries, and is undoubtedly the most convincing intervention yet to tame a major economic crisis in the country,” Puri said. Anshuman Magazine, Chairman & CEO – India, South East Asia, Middle East & Africa said, “RBI is in a mission mode to nurture the market, preserve financial stability and the timing here is crucial.”
The decision to defer installments of all term loans by three months will provide the necessary support to homebuyers as well, he added. JLL India CEO and Country Head Ramesh Nair said the reduction in key interest rates will encourage banks to resort to enhanced lending to productive sectors of the economy at a time when growth of credit is slowing down. “It is important for immediate transmission of these rate cuts to the home buyer which will boost consumer sentiment,” he added.
The injected liquidity of Rs 3.74 lakh crore along with the three-month moratorium on all term loans by financial institutions will alleviate short-term liquidity concerns and help developers as well as home buyers survive in these uncertain times, Nair said. He said that total outstanding loans of real estate developers from commercial banks, NBFCs and HFCs is estimated to be around Rs 4.5 lakh crore as of March 2020.
The moratorium will definitely benefit homebuyers as these financial institutions have lent an estimated Rs 20 lakh core as of March 2020, he added. Knight Frank India CMD Shishir Baijal said the apex bank has checked all the required boxes of rate cut, liquidity infusion and moratorium. “These steps will help the economy to stay stable despite the lockdown and economic disruption,” he said.
Dhruv Agarwala, the CEO of PropTiger and Housing.com, said, “This will go a long way in reducing the massive pain being felt in all parts of the economy and especially in the rate sensitive real estate sector. The RBI has shown its decisive intent to mitigate what could have been a severe economic fallout of the coronavirus pandemic.” Gaurs Group MD Manoj Gaur said the home loan rates should fall by 90-110 basis point. “For the sake of Indian economy, RBI must ensure proper transmission.”
Supertech Chairman R K Arora said the move would provide momentum to the property market and boost the economy. Nayan Raheja, Executive Director, Raheja Developers said the interest on home loans may fall down to around 7 per cent, which augurs well for the real estate sector.
Rohit Gera, MD, Gera Developments, said, “The reduction in interest rates will ease the burden on individuals and businesses as would the moratorium.” Avneesh Sood, Director Eros Group, hoped that the banks would pass on the benefit, lowering the interest cost of both developers and home buyers.
Mumbai-based Ekta World Chairman Ashok Mohanani said, “Today’s announcement infused some assurance in the mind of the panicked citizens that the economy will revive back in the short run.” Bhutani Infra CEO Ashish Bhutani said: “From reduction of rates to infusion of liquidity to moratorium on loan repayment, the measures will help both individuals & organizations to cope up with the current situation.”
Kaushal Agarwal, Chairman, The Guardians Real Estate Advisory said, “We believe that the banks will finally be passing the benefits of the current & previous rate cuts to the customers. This will reduce the borrowing cost for the home-seeker significantly and have a positive impact on real estate.”
The moratorium on EMIs will help in managing through the current crisis, said Ankush Kaul, President (Sales & Marketing), Ambience group. Poddar Housing MD Rohit Poddar said, “We welcome these measures as without them the economy will go into deflation.” Sushma Group ED Prateek Mittal said the home loan rates will fall sharply, which will boost housing demand when situation normalises.
This is a major step to improve liquidity conditions, cheer growth and safeguard financial stability, said Ashish Sarin, CEO, AlphaCorp. Honeyy Katiyal, founder, Investors Clinic, termed these steps as “the need of the hour” to boost the realty sector and overall economy. | RBI cut repo rate to 4.4% and cut cash reserve ratio by 100 basis points. reverse repo rate was cut by 90 bps to 4.4%. move will boost liquidity and ease debt pressure, according to developers. move will push credit flow into all industries reeling under impact of coronavirus. decision to defer installments of all term loans by three months will provide necessary support to homebuyers as well. | Positive |
https://economictimes.indiatimes.com/news/politics-and-nation/india-important-asset-for-global-community-in-fight-against-coronavirus-saudi-arabia/articleshow/74736578.cms | NEW DELHI: India is an important asset for the international and regional fight against coronavirus and in minimising its impact on the health of global community, Saudi Arabia, the chair of the G20 grouping, said on Friday.In an interview to PTI, Saudi Arabia's envoy to India Saud bin Mohammed Al Sati also assured that the Gulf nation is taking care of the safety of expatriates in the kingdom on priority.His remarks come days after Prime Minister Narendra Modi held a telephonic conversation with the Crown Prince of Saudi Arabia, Mohammed bin Salman , and emphasised the need for coordinated efforts to address the global challenge arising out of the coronavirus outbreak."Saudi Arabia views India as an important strategic partner. India is an important asset to international and regional integrated efforts to deal with the current situation and minimize its impact on the health of global community. We are working closely with the Indian government in this regard," the envoy said.Al Sati said that during the call, Crown Prince Salman affirmed that the Kingdom is working to coordinate international cooperation in combating this pandemic and adopting appropriate policies to reduce its economic burdens within the framework of the G-20.Saudi Arabia, that now has G20 presidency, is communicating with member countries to convene an extraordinary virtual G20 Leaders' Summit next week, he said.The summit will be aimed at advancing a coordinated response to the COVID-19 pandemic, its human and economic implications and will build on the ongoing efforts of the G20 finance ministers and central bank governors, senior health, trade, and foreign affairs officials, he said.Al Sati said that Saudi Arabia and India, as members of the G20 and longstanding strategic partners, will work closely to gather global cooperation in dealing with the coronavirus situation. Officials on both sides will work closely towards this cause, he added."The current situation with regard to the COVID-19 pandemic necessitates an international and coordinated response. The Kingdom is committed to working with international organisations and members of G20 to control and reduce the spread of the virus, protect people, mitigate its effects on the economy, and take the necessary measures to maintain the stability of the world economy," he said.G20 countries are working closely with the World Health Organization (WHO) to monitor the outbreak, share relevant information, encourage preventive measures, early case detection, and clinical care, he said.The health officials of G20 members met earlier this month to discuss the health and social impact of coronavirus and other infectious diseases, he pointed out.Moreover, G20 finance ministers and central bank governors have agreed to use all available policy tools, including fiscal and monetary measures as appropriate to deal with the global pandemic, the envoy said."We extend our support to the IMF and World Bank commitments to extend financing to developing countries that need it and invite countries to strengthen funding facilities," Al Sati said."As an effort in this direction, Saudi Arabia has provided USD 10,000,000 to the World Health Organization for the implementation of urgent measures to minimise the spread of the disease and to support countries with vulnerable health infrastructures, an effort that has been commended by WHO and the global community," he said.Asked about the situation faced by a large number of Indians living in Saudi Arabia in the wake of the coronavirus outbreak, he said that his country, after closely following the developments related to the spread of coronavirus, has adopted several temporary, precautionary measures affecting travel to and from the Kingdom.He said the measures have been put in place to ensure the safety of Saudi citizens as well as that of the expatriates living in the Kingdom.The measures taken by the Saudi government for the safety of its citizens and expatriate, include a temporary suspension on entry into the Kingdom for the purpose of Umrah or visiting the Prophet's Mosque in Medina, he said.Saudi Arabia has also decided to suspend attendance at work headquarters in all entities in the private sector, which employs a considerable number of expatriates, for a period of 15 days, the envoy said.The Saudi Education Ministry has also ordered all schools to remain closed until further notice and an intensive health awareness campaign has also been launched in the Kingdom, Al Sati said.The Saudi Ministry of Health has issued an awareness guide in several languages,including Arabic, Filipino, Urdu, English, French, Russian, and Portuguese, targeting citizens and expatriates to raise awareness about the spread of COVID-19, he said.Saudi Arabia's General Authority of Civil Aviation has intensified its efforts of sterilising and disinfecting terminals and all of the general facilities around the Kingdom's airports to ensure public safety, he said, adding that these operations are carried out on a daily 24 hours basis."The Saudi authorities are doing their best to deal with the pandemic and let me reassure you that the safety of expatriates in the Kingdom is a priority for us. In fact, many notable expatriates in Saudi Arabia including health experts have praised the efforts being made in this regard," the envoy said.Al Sati said the Saudi embassy is Delhi is also taking a number of precautions in the wake of the coronavirus outbreak and has advised all staff to follow the instructions and guidance of the local health authorities.The Saudi Embassy School is closed in compliance with the health authorities' instructions and all health standards and preventive measures were followed, he said."Many of our colleagues work from distance and the embassy as part of Delhi community cancelled or minimised its events. We are also extending assistance to Saudi nationals who are in India and coordinating with the Indian authorities and appreciate the cooperation we are getting," he said.The Saudi envoy said the consular section of the Embassy will remain closed until March 31. However, for any emergency, the Embassy can be contacted on the designated numbers on its website. | saud bin Mohammed al Sati says the kingdom is taking care of expatriates' safety. he says the kingdom is working closely with the government to reduce its economic burdens. the kingdom is coordinating international cooperation in combating the pandemic. the kingdom is preparing to convene an extraordinary virtual summit next week. a global response is needed to reduce the spread of the virus, he says. | Positive |
https://www.moneycontrol.com/news/business/markets/wall-street-closes-higher-on-signs-of-economic-recovery-5414151.html | Wall Street advanced on Tuesday as the prospect of additional stimulus and a record jump in retail sales suggested the U.S. economy could bounce back sooner than expected, five months into its pandemic-inflicted recession.
All three major U.S. stock indexes posted their third consecutive daily gains.
The Dow and the S&P remain about 11% and 8% below their respective record closing highs reached in February, while the tech-heavy Nasdaq hovers about 1% below its all-time closing high reached on June 10.
Data released by the Commerce Department showed retail sales jumped by a record 17.7% in May, blowing past the 8% increase analysts expected.
Investor risk appetite was given a further boost by the Trump administration's anticipated $1 trillion dollar infrastructure package aimed at jump-starting the economy.
"The retail sales numbers is the story that's driving markets higher," said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina. "But the smell of stimulus in the air is adding to today's gains for sure."
Amid a resurgence of new COVID-19 cases in China and the United States, along with unabated progression of the pandemic in Latin America and elsewhere, a UK-led drug trial showed low doses of generic steroid drug dexamethasone reduced COVID-19 death rates among the most severe cases.
"We got potentially more positive news in the fight against COVID-19," Detrick added. "But while COVID is in most peoples' minds, in the stock market's view it is all about reopening and the strong data suggest the recovery is happening and faster than most expected."
At the beginning of his two-day testimony before Congress, Federal Reserve Chairman Jerome Powell said, "Until the public is confident that the disease is contained, a full recovery is unlikely."
The Dow Jones Industrial Average rose 526.82 points, or 2.04%, to 26,289.98, the S&P 500 gained 58.15 points, or 1.90%, to 3,124.74 and the Nasdaq Composite added 169.84 points, or 1.75%, to 9,895.87.
All 11 major sectors of the S&P 500 ended the session well in the black, with energy and healthcare leading the charge.
The upbeat retail sales data helped push S&P 500's Retail index 2.3% higher, led by Nordstrom Inc and Kohls Corp , which surged by 12.9% and 9.0%, respectively.
Much stronger than expected homebuilder sentiment data helped home improvement retailer Home Depot Inc provide among the biggest boosts to the blue-chip Dow. Its shares rose 3.6%.
Shares of Eli Lilly and Co surged 15.7% after announcing its breast cancer therapy's success in a late-stage study.
Oracle Corp was up 2.5% after Wells Fargo hiked its price target on the company's shares ahead of its earnings release expected after the bell.
Streaming platform Roku Inc rose 12.4% in heavy volume, with no clear impetus, and the company declined to comment.
Advancing issues outnumbered declining ones on the NYSE by a 4.42-to-1 ratio; on Nasdaq, a 3.05-to-1 ratio favored advancers.
The S&P 500 posted seven new 52-week highs and no new lows; the Nasdaq Composite recorded 97 new highs and seven new lows.
Volume on U.S. exchanges was 12.87 billion shares, compared with the 12.95 billion average over the last 20 trading days. | all three major stock indexes post their third consecutive daily gains. the Dow and the S&P remain about 11% and 8% below their respective record highs. retail sales jumped by a record 17.7% in may, blowing past the 8% increase analysts expected. the fema says a full recovery is unlikely until the disease is contained. | Positive |
https://www.moneycontrol.com/news/business/markets/improving-macros-lead-to-rebound-in-copper-but-global-growth-continues-to-worry-5287741.html | Copper
Ravindra Rao
Most commodities in base metals pack have bounced off the multi-year lows hit in March this year led by a sharp rebound in Copper prices. LME three month Copper prices that had hit January 2016 lows of $4,371 as on March 19 have rebounded more than 21 percent to trade near $5,350 levels.
The recovery in prices has been on the back of improvement in global risk appetite as has been evident from a rebound in equity indices.
Global sentiments have improved amid hopes of pick up in global activity as many regions across globe, lift lockdown restrictions. European hotspots like Italy, Spain, Germany and UK along with various regions in US are gradually reopening their economies as the pace of new infections decline. Also lending support is loose monetary stance by central banks of major economies to revive growth.
More recently the risk appetite has further been lifted amid optimism over progress on virus vaccine front. As per the latest report from Bloomberg, Moderna Inc. said its vaccine tests yielded signs it can create an immune-system response in the body.
Copper prices have further sought support tracking improvement in China’s macro-economic data which is indicating early signs of recovery and fanning hopes of revival in demand from the region. Data from the nation last week showed that industrial production rose by 3.9 percent in April; its first gain this year following 1.1 percent drop in March and 13.5 percent plunge in first two months of 2020.
On fundamental front, prices are also seeking support from falling stocks at SHFE warehouses along with signs of pickup in demand from China as is evident from jump nation’s copper import premium. Copper stocks at SHFE have declined more than 171,000 since hitting four year high of 380,000 in mid -March. Meanwhile China’s Yangshang Copper import premium have surged to October 2018 high of $112.50 a tonne from $55 in February.
However, on the flip side recent jump in stocks at LME warehouses and expectation of easing worries over supply especially from Peru may disrupt the rally in prices. Copper stocks at LME jumped 55,650 tonnes on May 14, the second-biggest daily inflow on record in data going back to 1997, as reported by Bloomberg. Meanwhile supply worries from Peru, the world’s second-biggest-producer of copper, are expected to ease as miners are set to restart operations in the coming days and ramp up to around 80% of normal production levels within a month.
Furthermore, on macro front, the gains may also be challenged by global growth worries along with renewed tensions between US-China. The recent spate of bleak data from major economies like the US and Euro Zone highlights the damage of coronavirus on global health. Meanwhile, tensions between the world’s two largest economy viz US and China have risen following political sparring between both the nations over coronavirus outbreak.
Overall the recent upbeat risk appetite may continue to be supportive of Copper prices however further run up in prices may face challenges especially on fundamental front.
The author is VP - Head Commodity Research at Kotak Securities.
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. | copper Ravindra Rao Most commodities in base metals pack have bounced off the multi-year lows hit in March this year. recovery in prices has been on the back of improvement in global risk appetite as has been evident from a rebound in equity indices. global sentiments have improved amid hopes of pick up in global activity as many regions across globe, lift lockdown restrictions. | Positive |
https://www.financialexpress.com/industry/sme/msme-fin-rs-50000-crore-fund-of-funds-for-equity-infusion-in-msmes-to-benefit-msmes-says-nitin-gadkari/1959351/ | Credit and Finance for MSMEs: The Fund of Funds announced by the Finance Minister Nirmala Sitharaman on Wednesday to infuse Rs 50,000 equity in MSMEs will cater to more than 25 lakh MSMEs, according to MSME Minister Nitin Gadkari. Set-up with a corpus of Rs 10,000 crore, the Fund of Funds “will benefit over 25 lakh MSMEs under stress,” a statement by the MSME Ministry cited Gadkari as saying in a video message. The fund will help MSMEs with “growth potential and viability” even as they “face severe shortage of equity,” Nirmala Sitharaman had said. Moreover, the fund will be operated through a Mother Fund and a few daughter funds to enable MSMEs expand in size and capacity and would also encourage them to list on the main board of the stock exchanges.
Gadkari also hoped that with the easing of the global tendering norm MSMEs will be able to get orders from defence and police departments for uniforms etc. Sitharaman in the relief measures for MSMEs had disallowed global tenders up to Rs 200 crore for MSMEs to compete better against foreign companies for government procurement tenders.
Also read: Small businesses welcome govt’s 2% interest subvention for Mudra loans but say repayment still tough
The MSME Ministry has been aiming at increasing the turnover of the village industry from around Rs 88 thousand crore to Rs 5 lakh crore in next two years. Gadkari said the financial package for MSMEs will “help achieve this target in a big way. The Khadi sector will play a big role in this as it is entering into exports also.”
Meanwhile, under the second leg of the stimulus package announced by Sitharaman on Thursday, a 2 per cent interest subvention on loans up to Rs 50,000 secured by small businesses under the Mudra scheme’s Shishu cover was announced. The interest subvention will be offered to prompt payees making regular payments for 12 months. The total relief amount — under the subvention to Shishu loanees making regular payments — will be Rs 1,500 crore. | set-up with a corpus of Rs 10,000 crore, the Fund of Funds "will benefit over 25 lakh MSMEs under stress" the fund will help MSMEs with "growth potential and viability" it will be operated through a Mother Fund and a few daughter funds. the fund will also encourage them to list on the main board of the stock exchanges. | Positive |
https://www.livemint.com/opinion/online-views/opportunities-for-india-in-the-asian-century-11573207796266.html | India is at an inflection point. Its recent period of significant growth—faster than the global average—has stalled in the face of global headwinds against trade, volatile commodity markets, stagnant private investment, weaker domestic consumption and constrained government spending in the wake of recent fiscal and monetary reforms.
At the same time, Asia is becoming the world’s powerhouse and economic center. New research from the McKinsey Global Institute finds that Asia could generate more than half of the world’s GDP by 2040 as cross-border flows shift toward the region, which is rapidly integrating; with 60% of goods traded, 56% of greenfield foreign direct investment (FDI) and 74% of journeys by Asian air travelers taking place within the region.
This research identifies 4 distinct sub-Asias—diverse groups of economies with characteristics that complement each other, which are fast becoming increasingly interconnected. As a result, dynamic new flows and networks are appearing, redefining globalization as we know it. The new era will be one of regionalization, and Asia is taking a lead. Historically, India—and other countries in ‘Frontier Asia’ (Bangladesh, Sri Lanka, Kazakhstan, Uzbekistan, etc)—have had relatively low levels of integration when compared with the rest of the region; only around 31% of their flows are intra-regional. Yet, how they now respond to these shifting flows, and the opportunities they present, could be key in defining and delivering its next chapter of growth. Chinese President Xi Jinping’s recent meeting with Prime Minister Narendra Modi could catalyze accelerated economic collaboration between the two countries.
India offers three major ingredients to the broader Asian economy: services, which account for 53% of India’s GDP; a young labour force (younger than China’s median age by around ten years); and new markets for the rest of the region—even factoring in the downturn, GDP in India is expected to grow at well above 5% for the coming period, and incremental consumption is expected to reach $2.4 trillion by 2030.
Through adding the Asia focus, India could expect to target four opportunities to help drive its next chapter of growth. First, as more advanced Asian countries like China move up the economic development ladder, phasing out manufacturing in favour of a shift to R&D and more knowledge intensive manufacturing, there is room for India to seize the baton and become a larger sourcing base for global supply chains. Just the global sourcing value of mobile handsets is over $500 billion in scale, and India could aspire for a 15-20% share of this footprint. Some inroads are being made. For example, India is less reliant on imports of intermediate inputs and final goods, with inputs peaking at 9.6% in 2011 and dropping to 6.2% in
2017. But to fully realize this opportunity, more needs to be done, particularly in terms of improving infrastructure. Investments are needed to improve the logistical backbone supporting manufacturing, incentives are needed to encourage future investments in R&D, and large-scale innovation hubs need to be developed to move manufacturing to the next phase and help to capture the demand opportunity. The recent move towards an attractive corporate taxation regime could provide the much-needed ignition to attract more investment for Make in India.
Second, there are opportunities for India to benefit from the flows of capital and investments powering development as Asia integrates more closely. ‘Advanced Asia’ (Japan, South Korea, Singapore) and China have been huge contributors to the development of ‘Emerging Asia’ (small highly interconnected economies like Indonesia, Malaysia, Philippines, Thailand, Vietnam, etc), with China accounting for 42% of total Asian outbound FDI in 2013-17 and 43% and 61% of Emerging Asia’s imports and exports respectively. India and China have a history of competition, thus flows between the two countries both in terms of trade and people are not as strong as with other countries across the region. So, whilst India is beginning to attract investment from firms across Asia—Softbank, for example, has led several rounds of funding for Indian unicorns—more needs to be done to realize the potential opportunity of investment flows from other countries, and this may mean ‘looking East’.
Third, when it comes to innovation, East Asia has emerged as a leading hub, rivalling the leading innovation hubs globally. East Asia has already gained pole position in driving innovation
relating to key disruption themes such as electric mobility, 5G telecom, and renewable energy. Nearly 65% of global patents stemmed from Asia between 2015 and 2017, derived from the 50 fastest rising innovation cities in Asia, with an opportunity for Indian firms to be a part of this Asia-wide innovation arc.
Finally, a rapidly growing Asia is catapulting its major cities into leading consumption centres, that offers a ripe market opportunity for Indian businesses ranging from IT services, tourism services, generic pharmaceuticals, automotive components, agrochemicals, and so forth. Just with China alone, India runs an over $50 billion of trade deficit, that could be narrowed down by targeting these export opportunities. Our previous MGI research found that about 420 cities in emerging markets could generate 45% of global growth, many of them residing in Asia, that Indian firms could target.
The Asian century is well and truly underway. As globalization gives way to regionalism, and Asia takes a leading position, India could look to many of the opportunities arising out of the region’s rapid integration and shifting networks and flows to help drive its next chapter of growth.
Rajat Dhawan is a Senior Partner of McKinsey & Company and leads the Advanced Industries Practice for the Firm across the Asia-Pacific region. He is based in Delhi.
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Topics | Asia could generate more than half of the world’s GDP by 2040. china could move up the economic development ladder. phasing out the'separate' trade routes could help boost growth. a new era will be one of regionalization, and Asia is taking a lead. a new era will be one of regionalization, and Asia is taking a lead. | Positive |
https://economictimes.indiatimes.com/markets/commodities/news/oils-vaccine-trade-faces-hurdles-ahead-julian-lee/articleshow/79824793.cms |
Bloomberg
Bloomberg
Bloomberg
It’s easy to get caught up in oil ’s recovery. After an exceptionally fraught year, hopes are high that putting 2020 soundly behind us can only mean better days. But there’s still a long way to go to get back to anything like normal.That hard reality didn’t stop crude prices from rising by $14 a barrel, or 37%, since the beginning of November. That’s when trial data showed vaccines were proving extremely effective against SARS-Cov-2 , followed by the rapid roll-out of the first doses in the U.K. and U.S. There’s a sense of optimism that hasn’t been felt since the world woke up early in the year to a new disease that had emerged in China.The relief being felt in the oil market is understandable. As the virus spread, it had a devastating impact on lives and livelihoods. The only tool most governments had to slow contagion was to shut down their economies, causing an unprecedented slump in oil demand.The world’s major oil forecasters the International Energy Agency , the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries — slowly began to factor the virus into their outlooks, initially seeing its impact limited to China. But by April it was apparent that the disease was spreading rapidly elsewhere. Forecasts for 2020 oil demand were slashed and they haven’t recovered much in subsequent months as the chart below shows.Oil consumption this year is now expected by all three to be about 10 million barrels a day below the volumes they were forecasting at the end of last year — enough to fuel all of Africa and Latin America.Producers were slow to respond. Seemingly irreconcilable differences between OPEC and its allies sparked a production free-for-all after Russia refused in March to agree to deeper output cuts to help prop up oil prices. They regrouped the following month and eventually agreed to a record 9.7 million barrel a day reduction from the start of May.Further supply cuts came from producers outside the OPEC+ group, as budgets were slashed and some operations didn’t make economic sense anymore. U.S. crude production, which had already peaked in November of last year, fell by 2.7 million barrels a day, or 21%, between March and May. Around one-third of that has been restored in subsequent months.The sluggish response sent oil stockpiles soaring. Storage tanks filled, ships were pressed into service to hold excess volumes and spare capacity at Cushing, Oklahoma — the delivery point for the West Texas Intermediate crude contract — dwindled, briefly sending prices tumbling into negative territory for the first time ever.By the end of October, oil stockpiles in the developed nations of the OECD were still above the peak reached during the 2016 surge that preceded the formation of OPEC+, even though they had been falling for the previous three months.Production discipline among the OPEC+ producers, who’ve been kept in line by Saudi Arabia, has helped create the supply deficit needed to draw down stockpiles. Although the cartel’s de facto leader hasn’t called out Russia, the group’s second-largest overproducer in volume terms, it has been prepared to ruffle feathers closer to home, singling out both Iraq and the United Arab Emirates for failing to abide by their production targets. As a result, the group’s overall compliance with its output targets has been better than anyone expected.But there’s still a long way to go. The latest forecasts from the three agencies show global oil demand lagging the corresponding 2019 levels throughout next year, and that’s even with all the positive vaccine news. And the outlook’s getting worse, not better. OPEC’s own analysts have cut their forecast for 2021 oil demand with each new report since July, when they first began publishing quarterly numbers for next year.The demand recovery is patchy — both geographically and sectorally — and it’s likely to stay that way. It’s also going to be very susceptible to the ups and downs of the battle to defeat the pandemic. Tighter restrictions are once again in place in much of Europe and in some significant markets in Asia. New cases are rising again in South Korea, although the country is not yet at the point of tightening social distancing rules, while a fresh wave of infections is causing challenges for Japan’s fragile recovery.Different recovery speeds for different products are creating their own challenges for the refining sector. While diesel demand is picking up, as online shopping boosts the need for delivery trucks, jet fuel consumption is still being hammered, with commercial flights stuck at about 60% of comparable levels last year. Those disparities are unlikely to change any time soon, with many people likely to remain wary of flying for months to come.The approval of effective vaccines mark the beginning of a post-pandemic world. But we’d be foolish to think that just because we can see a finish line, it means we’ve actually reached it. There’s still a long way to go and the next few months will be tricky, both for people’s health and wellbeing and for economies around the world and my patch of the woods, the oil sector. | after an exceptionally fraught year, hopes are high that putting 2020 soundly behind us can only mean better days. but there's still a long way to go to get back to anything like normal. that hard reality didn't stop crude prices from rising by $14 a barrel, or 37%, since the beginning of November. that's when trial data showed vaccines were proving extremely effective against SARS-Cov-2. | Positive |
https://economictimes.indiatimes.com/news/defence/lt-ideaforge-sign-pact-for-high-tech-drone-manufacturing/articleshow/74006048.cms | New Delhi: Infrastructure giant Larsen & Toubro (L&T) on Friday said it has entered into a pact with ideaForge , domestic unmanned aerial vehicles manufacturer, to offer drones and allied systems for defence use. "L&T and ideaForge...have entered (into) an MoU (memorandum of understanding) to offer drones and allied systems for defence use," the company said in a filing to the BSE.Both companies will combine their strengths to offer hi-tech integrated drone solutions to enhance security and surveillance.They will also offer anti-drone solutions to counter the threat of malicious or unintended usage of drones."The MoU involves collaboration on technology, products, deployment and go-to-market strategies," it said.It will unlock the full potential of unmanned systems in security, surveillance and protection solutions.With the ever-increasing adoption of drone technology, the partnership will redefine the landscape of unmanned systems."We are teaming as partners of choice to provide indigenously developed unmanned systems for Indian and global markets. We are confident that this alliance will create a successful 'Make in India' collaboration between a diversified engineering conglomerate and a young, technology-driven company for across-the-range offerings," J D Patil, whole-time director and senior executive vice-president (defence and smart technologies), L&T, said. | Larsen & Toubro and ideaForge have entered into a pact to offer drones and allied systems for defence use. the partnership will unlock the full potential of unmanned systems in security, surveillance and protection solutions. the infrastructure giant is teaming as partners of choice to provide indigenously developed unmanned systems for Indian and global markets. the company is confident the alliance will create a successful'make in India' collaboration. | Positive |
https://www.financialexpress.com/industry/sme/msme-tech-yes-banks-big-bet-on-small-businesses-new-three-in-one-app-to-meet-msmes-digital-needs/1731674/ | To further engage with young and small businesses in India, private sector lender Yes Bank has extended its support programme for MSMEs — Yes Scale to MSME associations. The bank has launched a news app Yes Scale Bizconnect to allow members of MSME associations to list their products and services with an option to buy or sell among other members of different associations. The app will allow the associations to also manage their member base along with sharing respective industry-specific updates and information.
The bank has specially designed an online marketplace for MSMEs to do business among other MSMEs from within the app. From the banking solution perspective, the app links associations’ banking transactions including fee collections from members, sponsorships, event, symposium bookings etc., through the app. The knowledge sharing or the content part of the app will provide reports, articles and interviews based on the interest of every MSME member.
MSME minister Nitin Gadkari has been stressing on the critical role MSMEs play in enabling India as the $5-trillion economy in five years. From current around 29 per cent contribution to the GDP, Gadkari has targeted the share to increase to 50 per cent and 5 crore more jobs in five years.
Also read: U Gro Capital tie-ups with Bank of Baroda to lend to SMEs; raising Rs 75 cr from Sachin Bansal, Poonawalla
Yes Bank’s new app for MSMEs would also allow businesses to pay later, payments, collections, reconciliation etc. The new app will help the bank “digitize operations for its key MSME partners through curated banking and technology solutions,” said Rajan Pental, Senior Group President and Head – Branch and Retail Banking in a statement. Yes Bank had launched Yes Scale as a startup accelerator last year focusing on smart city, cleantech, agritech, lifesciences tech, and edtech but now functions as a solution platform for MSMEs by developing solutions along with startups.
Last year, the bank had set-up a YES GST programme for small businesses to know the impact of the GST system on their businesses and how to migrate to it. In July, the bank announced offering secured working capital loan between Rs 1-3 crore in the form of overdraft, letter of credit, and financial bank guarantees to MSMEs through its surrogate lending model Smart Edge for MSMEs. Small businesses don’t have to share their financial statements even as credit appraisal is done according to the data-points from GST returns and operative bank accounts of MSMEs. | yes bank has launched a news app to allow members of MSME associations to list their products and services. the bank has specially designed an online marketplace for MSMEs to do business among other MSMEs from within the app. the bank has been stressing on the critical role MSMEs play in enabling India as the $5-trillion economy in five years. from current around 29 per cent contribution to the GDP, Gadkari has targeted the share to increase to 50 per cent and 5 crore more jobs in five years. | Positive |
https://www.moneycontrol.com/news/india/csb-bank-cuts-lending-rates-5494161.html | live bse live
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South-based CSB Bank on Wednesday announced a reduction of up to 0.90 percent in its marginal cost of funds based lending rate (MCLR). The repo linked lending rate (RLLR) has also been revised to 4 percent from 4.40 percent in line with the RBI's rate cuts.
The Thrissur, Kerala-headquartered bank also cut its base rate by 0.75 percent to 9.50 percent, it said in a filing to the exchanges.
The move is in sync with an industry-wide trend of lending rates coming down following heavy rate cuts by the RBI to boost the economy amid the COVID-19 pandemic.
CSB Bank cut its overnight MCLR by 0.90 percent to 8.20 percent, but left the one-year MCLR unchanged at 9.50 percent.
Most of the retail and longer-tenor consumer loans by banks are linked to the one-year MCLR.
It also cut the one-month MCLR by 0.80 percent, three-month MCLR by 0.70 percent and six-month MCLR by 0.50 percent. | CSB Bank has cut its marginal cost of funds based lending rate (MCLR) by 0.90 percent. the repo linked lending rate (RLLR) has also been revised to 4 percent from 4.40 percent. the bank also cut its base rate by 0.75 percent to 9.50 percent. the move is in sync with an industry-wide trend of lending rates coming down following heavy rate cuts by the RBI to boost the economy. | Positive |
https://www.financialexpress.com/industry/sme/cafe-sme/msme-gst-gst-5-reasons-why-indias-largest-indirect-tax-reform-is-eventually-good-for-small-businesses/1922245/ | By Rajesh Gupta
GST and Taxation for MSMEs: The Goods and Services Tax (GST) was rolled out on July 1, 2017, to simplify the existing tax regime, widen the tax base, and increase the government’s tax revenues. It was implemented with a hope that it would eliminate the system of double taxation that was in place earlier. It is being estimated that there are almost 5 crore small and medium enterprises (SME) that are responsible to form the backbone of the Indian economy and contribute to 50 per cent of the industrial output and around 42 per cent of export earnings. SME had to adapt to the new tax regime. Considerable steps had to be taken by SMEs to become GST ready. SMEs were told that changing to the GST system would eventually prove beneficial. With a GST system in place, tax evasion would become much harder and scrupulous businesses would be rewarded by tax credit inputs.
While not everything went according to plan, there is no doubt that ultimately the GST is suitable for SMEs. The impact of GST on different sectors of the economy has become a never-ending debate. It is difficult to comprehend and speculate, but it is known that it is a mixed bag of opportunities and challenges, especially for SMEs. Few reasons why it is so are mentioned below.
Fosters an Atmosphere of Trust
In most developed countries, the ratio of the direct to indirect tax collected by the government is considerably larger than it is in the developing countries. Governments in developed countries collect the majority of their tax directly. On the contrary, in the developing countries, the government collects the majority of their taxes indirectly when consumers purchase goods.
The GST brings most of the indirect taxes under one roof, which adds transparency. With greater control, trust between companies has grown. As a result, business practices are much smoother.
Starting a Business Becomes Easier
Another advantage of GST for SMEs is that it makes starting a business much more manageable. Under the old tax regime, aspiring entrepreneurs who wanted to start a small business had to get a Value Added Tax (VAT) registration. While this seems simple, it was anything but because rules governing GSTs predecessor, the VAT differed from state to state. Besides processes varying from state to state, the process of getting a VAT registration was very cumbersome. To get a VAT required going to many government offices and meeting with many officials. Graft played a big part in getting a VAT registration.
Since GSTs rolled out the process of starting a business has become very smooth. Those who want to start a new business need to only register for a GST. As the process of registration is centralised, getting a GST number takes a fraction of the time that it took to get a VAT.
Also read: Job cuts on anvil: Small, medium retailers may layoff this many employees as Covid-19 kills liquidity
Businesses Pay Less Tax under GST
A considerable advantage of the GST regime is that companies pay much less tax than they paid under the VAT. In addition to eliminating the system of double taxation, the GST system eliminates the multiple state and central taxes businesses had to pay. Previously, companies had to pay as much as 32 per cent in taxes. Under the GSTs system, they pay just between 18-22 per cent. Furthermore, businesses don’t have to pay taxes to several different departments. Hence the tax filing process has become much more straightforward for small businesses.
More Businesses are Tax Exempt
A considerable advantage of the GST mechanism is that businesses that only earn up to Rs 10 lakhs annually do not need to file a GST return. Under the older tax system, every company that made more than Rs 5 lakhs had to file a tax return. Under the new GST system, however, more small businesses are exempted from paying tax. Such exemptions are good for the economy because it increases the incentive for aspiring entrepreneurs to establish businesses. A simplified registration process and a friendlier tax policy make the GST system a significant enabler of SMEs.
Easier Compliance
With a GST system in place, compliance becomes much easier for SMEs. The GST eliminates challenges and bottlenecks that regularly occurred under the old tax regime. Greater transparency under GST makes more people want to try their hand at entrepreneurship. The incentive to start a business has grown immeasurably since the introduction of the Goods and Services Tax. Entrepreneurs who commence a business today have a much easier time getting their venture off the ground. They also stand to gain much more financially by starting their enterprise.
Rajesh Gupta is the Co-founder and Director of BUSY (Accounting Software). Views expressed are the author’s own. | 5 crore small and medium enterprises (SME) are responsible for 50 per cent of the industrial output and around 42 per cent of export earnings. with a GST system in place, tax evasion would become much harder and scrupulous businesses would be rewarded by tax credit inputs. with greater control, trust between companies has grown. GST is a mixed bag of opportunities and challenges, especially for SMEs. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/us-financial-body-gives-15-mn-loan-to-indian-startup-to-expand-access-to-quality-education/articleshow/75550337.cms | WASHINGTON: An American financial organisation has agreed to sanction $15 million loan to an Indian education startup to expand the access to quality education by providing critical financing to schools that serve low-income students in India.The financing will help Bengaluru-based Varthana to reach more schools by meeting its need for long-term capital that is unavailable in the Indian market, US International Development Finance Corporation (DFC) said in a statement.The DFC, America's Development Bank, said that the financing will be especially critical as schools work to adapt to and recover from disruptions caused by the Coronavirus pandemic.In addition to providing timely loans, Varthana has been helping schools implement digital learning tools and teaching methods so that students can continue their education remotely through the pandemic, it said.Set up by Brajesh Mishra and Steve Hardgrave in 2013, Varthana supports more than 3,500 schools with 84,000 teachers and 2.5 million students, in particularly among low-income populations across the country.The company utilises a unique cash-flow underwriting model that enables it to flexibly and sustainably provide loans to low-fee schools. The typical Varthana borrower operates a school that charges $5 to $25 per month in fees.India's economy has grown rapidly over the last several decades, but more investment in education will be required to keep pace with this growth and extend its benefits across a broader segment of the Indian society, the DFC said.Low-fee private schools have stepped in to provide low- and middle-income families access to quality, affordable education. However, these schools need better access to financing in order to grow and improve, it said.DFC CEO Adam Boehler said this will help low-income students in India access quality education so they can learn, thrive and give back to their communities.Varthana is a testament to the impact that early-stage ventures can deliver when given the opportunity to scale their innovative approaches, he said."As a specialised lender to affordable private schools, Varthana is well positioned to provide both capital and remote education solutions to help schools navigate the current challenges."DFC's willingness to provide funding in the midst of this crisis truly demonstrates their commitment to support the education sector when it needs the most, and for that we are very grateful," said Varthana CEO Hardgrave. | the $15 million loan will help Bengaluru-based Varthana reach more schools. the company supports more than 3,500 schools with 84,000 teachers and 2.5 million students. the company utilises a unique cash-flow underwriting model that enables it to flexibly and sustainably provide loans to low-fee schools. the typical borrower operates a school that charges $5 to $25 per month in fees. | Positive |
https://www.moneycontrol.com/news/business/markets/govt-plans-to-garner-rs-10000-cr-from-7th-tranche-of-cpse-etf-4850751.html | The government is planning to raise over Rs 10,000 crore from CPSE ETF's seventh tranche that would be launched by the end of the current month, according to market sources. The issue is likely to open for anchor investors on January 30 and for other institutional and retail investors, the next day, they added.
Central Public Sector Enterprises ETF runs a concentrated portfolio with a handful of stocks having weights of as high as 20 per cent on the underlying index. The portfolio is concentrated towards the energy and oil sector.
Nippon Life India Asset Management, formerly known as Reliance Nippon Life Asset Management, is managing the CPSE ETF on the government's behalf and has already filed 'scheme information document' for CPSE ETF FFO 6 with markets regulator Sebi.
Sources privy to the development said the offer will have a base issue size of Rs 10,000 crore. Besides, there will be a green-shoe option.
The decision to launch seventh tranche of CPSE Exchange Traded Fund (ETF) has been taken after receiving robust response for earlier stake sale by the government in the product.
Through the earlier six tranches of the CPSE ETF, the government has already raised Rs 49,500 crore -- Rs 3,000 crore from the first tranche in March 2014, Rs 6,000 crore in January 2017, Rs 2,500 crore from the third in March 2017, Rs 17,000 crore in November 2018 and Rs 10,000 crore in March 2019 and Rs 11,500 crore in July 2019.
The CPSE ETF tracks shares of 11 CPSEs -- ONGC, NTPC, Coal India, IOC, REC, PFC, Bharat Electronics, Oil India, NBCC India, NLC India and SJVN.
The proceeds from the ETF will help the government meet its disinvestment target of Rs 1.05 lakh crore for the current financial year. It had aimed to garner Rs 85,000 crore through disinvestment in the preceding financial year. | the government is planning to raise over Rs 10,000 crore from CPSE ETF's seventh tranche. the issue is likely to open for anchor investors on January 30 and for other institutional and retail investors, the next day. the proceeds from the CPSE ETF will help the government meet its disinvestment target of Rs 1.05 lakh crore for the current financial year. | Positive |
https://www.moneycontrol.com/news/business/economy/fed-coughs-world-blanches-yuan-unfazed-5748331.html | Representative image
Shortly after 2pm New York time yesterday, US Treasury yields jumped, stocks dropped sharply and the dollar registered its first gains in over a week. What grave disaster had struck?
The equivalent of a natural disaster in the world of finance: The US Fed had just released the minutes of the July 28/29 FOMC meeting and those minutes contained some unforeseen and highly unwelcome passages.
First off, the minutes portrayed a rather more gloomy economic outlook than Fed chair Powell had let on in his post-meeting press conference.
Second – somewhat technical, but highly meaningful to market professionals – the minutes contained the ominous sentence that "many [meeting] participants judged that yield caps and targets were not warranted in the current [economic] environment."
This graph by Yahoo Finance shows how stocks fell on the S&P 500 around 2pm on Wednesday.
So, yield curve control, the policy the Bank of Japan has pursued since 2016 to keep rates super low, is not warranted?
On that news, 10-year Treasury yields jumped by three basis points instantaneously to just below 0.69%, real yields that strip out inflation reacted even more sharply and rose by over 5 basis points to -0.852%.
Alas, the 'spook' did not last ... except that US stock market losses carried over into Asia and into Europe, where major indexes are down over 1% as at this writing (7pm HK time).
Investors in stocks are, of course, worried that unlimited liquidity won't last forever and took it hard that there appears to be a majority of FOMC members who are not prepared to make unconditional promises.
Bonds, meanwhile, have largely retraced yesterday's losses and the US 10-year yield now stands at 0.65%. The US dollar, which got a lift from the real yield rise, has given most of it back and trades at 92.9380 on the DXY, the lower end of the day's trading range of 93.1940 - 92.8750.
China's currencies cared little about the raucous New York action. The CNH, the offshore yuan, stands at 6.9151 to the USD. It had opened at 6.9220, in line with the PBoC's morning fixing of central parity for the CNY (onshore) at 6.9274.
The storm in the New York teapot demonstrates just how nervous markets are about the combination of established and lasting US inability to cope with the Covid-19 pandemic and vastly extended equity valuations discounting a fast and lasting economic recovery.
The dollar is resuming its decline because fundamentals remain unchanged and more debt will have to be piled onto the US balance sheet to keep the economy afloat.
The yuan will continue its steady rise because its fundamentals in all major respects are continuing to improve.
This article first appeared on www.asiatimesfinancial.com. | the dollar registered its first gains in over a week. the dollar is trading at 92.9380 on the DXY. the yuan is at 6.9151 to the USD. the yen is at 6.9151 to the USD. the yen is at 6.9151 to the USD. the yen is at 6.9151 to the USD. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/droom-earmarks-usd-100-mn-capex-for-tech-marketing/articleshow/74266551.cms | NEW DELHI: Online automobile marketplace Droom will pump in about USD 100 million (about Rs 718 crore) this year towards further strengthening its technology offerings, marketing and new initiatives, its founder and CEO Sandeep Aggarwal said.The company, which aims to touch USD 120 million (about Rs 862 crore) in net revenue by 2021, is also looking at expanding its international operations to six new markets including Indonesia, Vietnam and the UAE this year."We have earmarked a capex (capital expenditure) of about USD 100 million this year. Of this, about USD 50 million will be towards marketing and promotion, USD 30 million for headcount and technology and roughly USD 20 million for new initiatives," Aggarwal told PTI.He added that the company has been working on keeping its cash burn low and is hopeful of also hitting profits by the end of the year.Aggarwal said the company has already established presence in three international markets and is looking at growing that further this year.Droom is looking at Indonesia, Philippines and Vietnam in Southeast Asia and the UAE, Oman and Saudi Arabia in the Middle East."While we are aggressively expanding our international presence, we are also deepening our presence within the India market as we believe this will continue to be the mainstay of our business. Less than 10 per cent of our revenues will come from international operations," he said.The company also plans to raise about USD 150 million before it launches an initial public offering (IPO) in 2021.It has so far raised close to USD 125 million in six rounds of funding from investors like Lightbox, Beenext, Beenos, Digital Garage, Toyota Tsusho Corporation, and Integrated Assets Management.Droom had clocked a gross merchandise value of USD 1.2 billion on its platform with a net revenue of USD 32 million in 2019. Its platform processed over 6.1 lakh orders last year. | online automobile marketplace aims to reach USD 120 million in net revenue by 2021. about 50 million will be towards marketing and promotion, according to founder and CEO. about 30 million will be for headcount and technology, and roughly 20 million for new initiatives. company also looking at Indonesia, Philippines and Vietnam in Southeast Asia and the UAE. aims to raise about USD 150 million before it launches an initial public offering (IPO) in 2021. | Positive |
https://economictimes.indiatimes.com/industry/indl-goods/svs/metals-mining/indias-coal-production-to-clock-record-700-mn-tonnes-in-fy21-secy/articleshow/75659088.cms | India will produce a record 700 million tonnes of coal in the current fiscal ending March 2021, helping cut down on imports, Coal Secretary Anil Jain said.India produced 602.14 million tonnes of coal in 2019-20 fiscal, marginally lower than 606 million tonnes output in the previous year."We are on track to producing 700 million tonnes of coal in 2020-21 fiscal," Jain told PTI in an interview.This record output will help stop most of substitutable coal imports, he said.India imports 235 million tonnes of coal annually. About half of this is non-substitutable as they are tied to the power plant or user factories, but the rest can be cut down, he said."We will able to cut substitutable coal imports with this rise in production," he said.Prime Minister Narendra Modi has set a target to expand the country's economy to USD 5 trillion by 2024, from USD 2.9 trillion currently, and reducing energy imports and harnessing domestic resources are key to meeting that goal.To meet the import reduction goal, state miner Coal India Ltd is targeting to raise its annual output to 1 billion tonnes by fiscal year 2024.Jain said FY20 coal production was lower than the target of 660 million tonnes because of flooding of a key coal mine.Power plants, which are key coal users, have stocks as high as 30-days due to the coronavirus lockdown , he said.The lockdown shut factories and offices, slashing electricity demand by about a quarter, thus affecting the use of coal and causing inventories to swell to record levels.Coal India Ltd has stocked up a record 75 million tonnes at its mines while power station inventories have surged to 44.7 million tonnes, the highest in data going back to 2008.The combined inventories are more than the two-month average of production at Coal India last fiscal. | india will produce a record 700 million tonnes of coal in the current fiscal ending March 2021. the output is marginally lower than 606 million tonnes output in the previous year. the record output will help stop most of substitutable coal imports, he says. india imports 235 million tonnes of coal annually, but the rest can be cut down. the country has set a target to expand its economy to USD 5 trillion by 2024. | Positive |
https://www.moneycontrol.com/news/business/coronavirus-impact-broking-firms-mull-permanent-shift-to-work-from-home-for-most-staff-to-cut-cost-5144141.html | The novel coronavirus pandemic and the resultant nationwide lockdown and financial woes may prompt the Indian equity broking industry to adopt the work-from-home concept permanently, at least for a significant number of its workforce, experts say.
The work-from-home structure adopted during the 21-day lockdown period may alter the format of the broking sector forever as the cash-strapped industry is looking for cues to slash cost without actually cutting manpower.
Says Rajendra Bhambhani, Joint Managing Director of Philip Capital, who deals mainly with foreign institutional investors: "We are analysing the changing dynamics of the functioning of our company now. We might allow some departments to work from home 3 to 4 days a week. We can even call people to the office on a rotational basis. Departments like back-office or sales could work from home".
In fact, some surveys have shown that a significant number of the global workforce who have been forced to work from home because of the COVID-19 pandemic may find themselves permanently working from home. According to brokers, around 20-25 percent of the workforce could be allowed to work from home in the Indian context.
An HR official at a broking firm told Moneycontrol: "When we start allowing work from home, we will take a more formal approach to tasks such as updating daily diary, which we usually don't do when employees are in office. We may have to keep an eye on employees to ensure that they are working only for our company. More importantly, salary cuts and job cuts may also happen since the supply of employees will go up when we allow people to work from home. Around 20-25 percent of job loss may happen in the financial sector".
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 trend would have an impact on commercial real estate as more companies may opt for smaller offices with limited infrastructure. "Commercial properties may correct approximately 30 percent if the effect of COVID-19 will not get diluted by September. The life of people will be different after coronavirus pandemic and companies will consider smaller offices especially when you have experienced successful business meetings and deals during the lockdown," said Pankaj Kapoor, Managing Director of Liases Foras Real Estate Rating.
Niranjan Hiranandani, Chairman of Hiranandani group, also echoed this view. "The change in trend will have an initial impact on commercial real estate like office spaces which will see a muted demand in the short term. This means numbers will drop, human resource deployment at work will be reduced in densely populated locations, and entry of workforce in a staggered pattern with a shift cycle to be devised, resulting in a new world with revised rules of social engagement and distancing," he told Moneycontrol.
Hiranandani further sees an opportunity for India in the new world order: "If the global outrage against China for the perceived role it played in the COVID-19 pandemic going ‘international’ actually happens, we might see MNC manufacturing units in China relocating – and India stands to gain the most from this shift. If this happens, we may see an influx of MNCs, and demand for office spaces may return to the levels before the pandemic," he opined.
But many believe that the COVID-19 impact on real estate won’t be restricted to commercial properties. "Commercial real estate is about 15 percent of the total market, but the repercussions of change could be felt in the residential segment too. As there is economic uncertainty, the new entrants may not buy a property. However, 2019 was one of the best years for the commercial property market, and the COVID-19 pandemic will have a huge impact on this segment," Ghulam M. Zia, Executive Director, Knight Frank told Moneycontrol.
In the broking business in India, margins have been shrinking and the cost of operations has been increasing steadily. Now, the work-from-home concept, though forced by the pandemic, has prompted these firms to think out of the box to cut costs. Says Rakesh Bhandari, Director, Nirmal Bang: "We are a broking firm with sufficient technology backup. We thought about work-from-home culture but never implemented it. Now, accidentally we have implemented it, and we are analysing it. Some departments like compliance can easily work from home. The sales department can also conduct meetings on apps like Zoom and meet clients personally only when they think a deal will materialise."
"Novel creative jobs can emerge in the broking sector like moderator or trainer for financial markets. In the current scenario, we pay for transportation and accommodation to those who give training, which can be saved if we implement work from home. It is also a good opportunity for people who are reluctant to work now due to family commitments," Bhandari further added.
Jayakumar, President, Prime Securities Limited, mentioned in an online discussion conducted by Pantomath: "We have 25 people working currently in my office at a time. But we are thinking of keeping 4-5 people to work from the office and others can work from home or come once in three days."
Another broking firm CEO told Moneycontrol on condition of anonymity: "Anyway, there are numerous software to check the efficiency of employees. The software will tell us how much time a particular employee has worked in a day and how many times he/she has gone for breaks. So, accordingly, a company can set parameters for employee efficiency. In metro cities, people spend at least two hours a day commuting, which can be used effectively if they work from home. So, work-life balance will also improve."
As far as the broking sector is concerned, market regulator Securities and Exchange Board of India also needs to relax certain rules, which it has done during the lockdown period. "SEBI and exchanges have allowed the relocation of the trading terminal to unauthorised locations now. Usually, a trading terminal cannot be shifted beyond the company headquarters or branch offices. The relocation is now allowed until April 30," a source told Moneycontrol. | coronavirus pandemic may prompt the broking industry to adopt the work-from-home concept permanently. around 20-25 percent of the workforce could be allowed to work from home in the Indian context. 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. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/remembering-the-budget-speech-that-changed-india/articleshow/73292816.cms | A narration of someone's life story is something that you may not have heard in a Budget speech , which usually is a sedate and serious affair. Most of us remember the witty remarks, the comebacks and the couplets that have now become an inseparable part of the India 's biggest financial exercise.In all of India's budget history, there was, however, one such time when a digression from the 'routine' happened. And the finance minister at the centre of that episode was a person who is regarded as one of the most restrained and reserved politicians India has ever produced.The 1991 Budget speech by then finance minister Manmohan Singh was pathbreaking in more ways than one. It was the speech that changed India — ushering in what the posterity would know as liberalisation . It eased imports, allowed foreign investment and started disinvestment in inefficient PSUs.Most importantly, it marked the end of notorious licence-permit raj.The 1991 speech was also unique for something very unusual for the reticent Dr Singh — an emotional narration of personal life.Thus went his speech: "I was born in a poor family in a chronically drought prone village which is now part of Pakistan. University scholarships and grants made it possible for me to go to college in India as well as in England. This country has honoured me by appointing me to some of the most important public offices of our sovereign Republic. This is a debt which I can never be able to fully repay."Towards the end of his speech Manmohan cited Nehru's advice to daughter Indira that in dealing with the affairs of the state one should be full of sentiment but never be sentimental. "But the House will forgive me if on an occasion like this I cannot avoid being somewhat sentimental," said Manmohan before he began narrating the story of his life.To the story of his background Manmohan added, "The best I can do is to pledge myself to serve our country with utmost sincerity and dedication. This I promise to the House. A Finance Minister has to be hard headed. This I shall endeavour to be. I shall be firm when it comes to defending the interests of this nation. But I promise that in dealing with the people of India I shall be soft hearted. I shall not in any way renege on our nation’s firm and irrevocable commitment to the pursuit of equity and social justice. I shall never forget that ultimately all economic processes are meant to serve the interests of our people."Manmohan knew full well that his speech would become a milepost in India's history and be read and re-read for a long time to come. By peppering it with personal anecdotes, he was perhaps trying to make it even more unforgettable.Or probably he was aware that his radical reset of the economy might come across as mainly a pro-business gesture, so he brought up his own humble origins to underline his commitment to the poor. | 1991 budget speech by then finance minister Manmohan Singh was pathbreaking. it was also unique for the reticent — an emotional narration of personal life. he cited Nehru's advice to daughter Indira that in dealing with affairs of the state one should be full of sentiment but never be sentimental. he promised to be firm when it comes to defending the interests of this nation. | Positive |
https://www.financialexpress.com/market/indices-rally-to-end-day-at-3-month-high/1997310/ | Indian equity markets ended higher this week by 3%, thanks to the rally in the past two trading sessions. The markets closed at their three-month high on Friday.
Positive global cues coming out of European markets ahead of the European Union leaders’ meeting as well as developments on the proposed initial public offering (IPO) of LIC helped the equity markets. Additionally, strong upward movement in heavyweight index stocks such as Reliance Industries (RIL) and Bajaj twins led to the benchmarks ending Friday’s session higher.
The 30-share index Sensex was up by 523.68 points or 1.53% to close at 34,731.73. The broader Nifty50 was up by 152.75 points or 1.51% to close at 10,244.4.
Indian markets had started the week on a decline because of the rising Covid-19 cases and negative global cues but they ended the week with Sensex and Nifty climbing nearly 3%. This is because the focus of the markets has been toward reopening of the economies.
Sanjeev Zarbade, vice-president private client group, Kotak Securities, said, “It has been a good week for the global markets as positive sentiment on reopening the economies overshadowed reports of fresh Covid-19 cases in the US and China. The BSE-30 Index gained 2% plus in the current week. Market mood was supported by a gradual resumption in business activities and an earlier than expected normalisation in certain consumption sectors.”
Foreign portfolio investors (FPIs) on Thursday bought stocks worth $48.5 million, according to provisional data on the exchanges whereas domestic institutional investors bought stocks worth $149.75 million. The total FPI inflow till June 18 stood at $2.5 billion.
Shares of RIL hit an all-time high on Friday to close at Rs 1,763.2 a piece, after the oil-to-telecom conglomerate announced that the record investment deals that it had done in its telecom arm, Jio, and the mega rights issue that the company had conducted, has made the company net debt free well ahead of its March 2021 target. The stock of RIL rose by 6.48% during the day’s trading session and now accounts for over 17% of the market capitalisation (m-cap) of Sensex. The stock touched a full m-cap of Rs 11.15 lakh crore.
Additionally, the government has invited bids for two pre-IPO advisors to help with the IPO of LIC.
Deepak Jasani, head of retail research, HDFC Securities, said, “On the domestic front, the stock markets were also cheering since the government has invited bids to appoint two pre-IPO transaction advisers for the mega proposed IPO of LIC. Reliance moving higher and gaining even higher weight in Nifty also pushed the benchmark indices up.”
“Globally, the markets were in a positive mood, as there were also some reports that China plans to accelerate purchases of American farm goods to comply with the phase one trade deal with the US. This led to some relief on the trade front,” said Deepak Jasani of HDFC Securities.
Sanjeev Zarbade of Kotak Securities said, “After the rally in the current month, investors need to be cautious in the near-term and watch out for geopolitical developments between India and China on one hand and valuations on the other. Resurgence of Covid-19 cases and reports of a second wave of infections are potential risks for the markets.” | the markets closed at their three-month high on friday. positive global cues coming out of european markets helped the markets. strong upward movement in heavyweight index stocks such as Sensex. the 30-share index was up by 523.68 points or 1.53% to close at 34,731.73. the broader Nifty50 was up by 152.75 points or 1.51% to close at 10,244.4. | Positive |
https://www.livemint.com/Auto/Yx0brfpW4eydSbe8j5DXMJ/The-6-trillion-barrier-holding-electric-cars-back.html | Wouldn’t it be great if we could all drive without dirtying the air we breathe? Alas, not everyone can afford an electric car.
The good news is the death of the internal combustion engine is nearing and electric-vehicle sales are on a tear. Countries that together account for more than 10% of global auto sales have detailed plans to phase out conventional gasoline-powered cars. Include China, and that jumps to 40%.
These days, electric cars can drive further and be charged faster than previously. Automakers are beginning to churn out at least one electric variant, with more than 100 battery-powered models to be available by next year. Does that mean the affordable electric car of the future has arrived?
Sales numbers suggest it’s getting closer: consumers bought more than 1 million electric vehicles last year, an increase of almost 60% from 2016, even as global car demand turned lower. China, with an aggressive green vehicle policy, accounts for almost half of worldwide electric car sales. The average price of lithium-ion batteries, which account for almost half a car’s cost, has dropped from $599 per kilowatt-hour to $208 per kWh over the past five years. Drivers now have almost 600,000 charging outlets globally, of which more than half are in China.
The country is responsible for a big part of the shift in demand, through carrot-and-stick policies. That’s forced global automakers looking for a foothold in the world’s largest auto market to start producing electric cars.
In absolute numbers, conventional vehicles dwarf their green cousins. However, the decline of gas-guzzling engines looks inexorable as stringent fuel economy standards force manufacturers to rethink the future and look to China. Electric vehicle sales rose 55% in the country last month, even as overall passenger-car demand slumped.
Elon Musk’s Tesla Inc. has big plans for China, along with a host of homegrown electric car companies that have sprung up with backing from deep-pocketed investors.
China’s incentives, policies and industry rules essentially require a portion of all cars sold to be electric. With less than a third of the parts of regular autos, electric models are easier to manufacture. Surely, then, we’ll get there?
The trouble is, the sales numbers don’t say much about quality or technology. Earlier this year, analysts from UBS Group AG went to scope out electric car batteries around Asia-Pacific. The reality on the ground wasn’t as good as the figures suggested. China’s domestic batteries performed poorly at low temperatures and companies had other manufacturing issues, the analysts noted after speaking to unidentified industry participants. Others said the sales numbers were mostly a marketing effort reflecting pressure from local governments eager to show they’re following Beijing’s policies.
Meanwhile, in August, General Motors Co. postponed the introduction of the Buick Velite 7, a local version of its Volt model, because of deficient batteries. The launch had been scheduled for September, with a pure-electric version planned for next year. The supplier is a Michigan-based, Chinese-owned company with a plant in Hangzhou.
Either way, the problem of cost and, therefore, consumer take-up looms large. Households most likely to buy a battery-powered electric car have an income of $300,000 a year or more, according to a UBS survey of around 10,000 people in the six largest auto markets. Only 41% of households with income of $150,000 to around $200,000 plan to make such a vehicle their next auto purchase. The biggest barrier to buying cleaner cars is still the high price.
The cost of full adoption is astronomical. An estimated $6 trillion is theoretically needed to build the infrastructure that electric cars need such as charging stations and power networks, according to Goldman Sachs Group Inc. That’s about 7.5% to 8% of the world’s gross domestic product. Add to that the amount companies spend on making the cars and batteries, and the number could be even higher.
Studies have shown that the transition costs will have to be reduced through government subsidies and support. Withdrawing support too early—as the case of Tesla has shown in Denmark and Hong Kong — kills sales immediately.
For companies, finding the balance between affordability and profitability remains tough. Take China’s battery champion Contemporary Amperex Technology Ltd., which went public in Shenzhen about six months ago. It counts the likes of BMW AG among its customers and has almost 40% of the battery market in China. Margins fell 5 percentage points in the third quarter, though volumes and profit rose. A decline in average selling prices and higher raw materials costs were to blame.
Even as technology improves, costs remain the biggest barrier. Luxury carmakers such as Jaguar Land Rover and Porsche Automobil Holding SE will reap better margins from higher-priced electric SUVs. But for such models to become widely affordable, the cost of a battery would have to come down to $100 per kWh.
The capital spending needed to make that happen won’t be easy. Expenses are the biggest issue for the auto industry, from tariffs and raw materials to labor and research and development. Cost of goods sold averages more than 80% of net sales at the world’s largest car companies.
The bottom line that is we’re at least five years away from bringing the price of a good electric car down to that of comparable conventional one, without factoring in tax credits and subsidies. Drivers will have to hold their breath for a while longer.
Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal.
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Topics | electric-vehicle sales are on a tear in countries that account for 10% of global auto sales. china is the only country that has plans to phase out conventional gasoline-powered cars. the average price of lithium-ion batteries has dropped from $599 per kilowatt-hour to $208 per kWh over the past five years. electric vehicle sales rose 55% in the country last month, even as overall passenger-car demand slumped. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/ontario-teachers-to-invest-350-mn-in-edelweiss-alternative/articleshow/77893907.cms | Mumbai: Ontario Teachers Pension Plan Board (Ontario Teachers), Canada's largest single-profession pension plan, has agreed to invest $350 million (Rs 2,600 crore) in Edelweiss Alternate Asset Advisors (EAAA), the Mumbai based leading private debt manager.Despite the global economic uncertainty amidst the current pandemic, this commitment from Ontario Teachers is a strong endorsement of the Indian alternative asset management space, said a company statement.Last week, Asia focused private equity firm PAG had acquired a 51% stake in Edelweiss Group’s wealth management business for Rs2,244 crore."The need for long term patient capital in India presents a huge opportunity for private debt managers," said Rashesh Shah , Chairman and CEO, Edelweiss Group.EAAA is a part of the Edelweiss Asset Management business which manages customer assets aggregating Rs. 1 lakh crore across Alternatives, Mutual Funds and Distressed Assets."This partnership will further expand our presence in, and provide additional insights on, the important Indian market," saidGillian Brown, Senior Managing Director, Capital Markets at Ontario Teachers.The Ontario Teachers' Pension Plan Board (Ontario Teachers') is the administrator of Canada's largest single-profession pension plan, with $205 billion in net assets as on June 30.Last year, leading Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ”), had invested Rs.1800 crore ($250 million) in Edelweiss Financial Services ’ non-banking financial company (NBFC) arm, ECL Finance Ltd.
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Top Trending Stocks: Sensex Today Live | the Ontario Teachers' pension plan board (Ontario Teachers') has agreed to invest $350 million (Rs 2,600 crore) in Edelweiss Alternate Asset Advisors (EAAA) the Mumbai based leading private debt manager manages customer assets aggregating Rs. 1 lakh crore across alternatives, mutual funds and distressed assets. the partnership will further expand our presence in, and provide additional insights on, the important Indian market. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/d-streets-eminent-valuer-anmol-sekhri-says-under-owned-stocks-best-bets-to-multiply-wealth/articleshow/68044648.cms |
The only source of knowledge is experience, said Albert Einstein. And this is true in the world of stock investment too. Who is better placed to testify for this than Dalal Street veteran Anmol Sekhri!With over 45 years’ experience, Sekhri (67) has mastered the art of picking big compounders. He has seen many boom and bust cycles during this journey and knows most companies like the back of his hand.So much so, many of his peers on Dalal Street refer to him as a ‘mini-encyclopedia’ of Corporate India.A valuation expert by profession, Sekhri has over the years managed to spot many multibaggers in their early days: be it MRF, Kansai Nerolac, Eicher Motors, Jubilant Life, Honeywell , Florence Investech and Bengal Assam; stocks that multiplied his wealth many times over last 12 years. Market capitalisations of these companies grew three to 65 times during this period. ETMarkets.com could not independently verify his old holdings.Two other stocks, Elantas Beck India and Nesco, also worked for him in last six years and they are still part of his portfolio. He still holds over 1 per cent stake in Elantas Beck India.Apollo Sindoori Hotels is one of his latest finds, which has grown almost three times in last 15-16 months.Why hold a stock after it has already delivered manifold return? “This is a dynamic decision,” says Sekhri. “Valuation is the driving force behind this decision. If the benchmarks are satisfied, we prefer to hold a stock through a couple of bad quarters. It is like shooting a flying bird,” he says.The benchmarks he referred to include a few valuation criteria and foreseeable growth. If there is any sign of trend reversal, then a detailed analysis is done, he explained.Mumbai-based investor Dhiraj Dave, who has known Sekhri for last two years, says, “Anmol Sekhri is an industry veteran, who has in-depth understanding of Indian businesses and managements. Over the years, he has figured out the ins and outs of Indian businesses.”Sekhri normally invests in companies that have been listed for at least 10 years or the ones that belong to reputed corporate groups. “Sustainability of a management through tough times, public confidence in a company and its management, sustainability of a business and its linkages with the economy are important,” says he.Prospects of the economy for the next 3-4 years, product visibility and valuation are other important parameters that Sekhri looks at before picking a stock. He also considers the debt-to-equity ratio “He is well known in the industry for the valuation business that he owns. In many of the stocks that he holds, Sekhri has been invested for decades. He has even picked a few for the next generation. He is fun to interact with for the catchy one-liners that he drops, which also provide a lot of insight into a business,” Dave told ETMarkets.com.Since the days of Harshad Mehta scam in 1992 till the global financial crisis of 2008, Sekhri has many stories to share. He entered the stock market in 1972 with the objective of earning good, honest and large money.“The Harshad Mehta scam taught me a good lesson. I really flopped in that episode, because I was highly leveraged. I was pledging shares to become rich quickly and virtually built a pyramid of loans against shares. When the crash happened and interest rates rose, the bankers had no option but to sell my stocks,” Sekhri recalled.Sekhri had recovered from that setback and was back in the market in 2002.“I lost money in the first round. But constant learning helped me improvise. Great returns over time encouraged me to become more aggressive. Earlier, information was not easily available. Hence, I made investment in a few stocks just to receive information through annual reports, postal ballot etc, so that I could stay updated with what’s happening in the market. I am still not a full-time investor, but love the intellectual challenge and the need to be alert 24x7,” says he.During the dot-com bubble burst in 2000 and the global financial crisis in 2008, hypothetical projections were used, and they were very aggressive. “From this learning, I focused on real-time demand and supply, rather than imaginative forecasting,” he says.Sekhri manages his own funds and he is not a Sebi-registered analyst.The odds were not always in favour of Sekhri. Like others, he too failed many times, especially when he was investing based only on book values. “I lost money on several occasions, for instance, in stocks like GTL and Specialty Restaurants, to name a few. Luckily, these investments were insignificant. However, I have since sold those holdings,” Sekhri adds.During 1980-1990s, there used to be heavy marketing and hype over IPOs. People gave unofficial rates, which would sometimes lead to wrong decisions. The lesson learnt from this was to avoid getting swayed by publicity and premium-priced IPOs, but to evaluate businesses on my own.Sekhri lost money in many IPOs, which taught that understanding a business is foremost and reliability of the management is very important.IPOs of multinational corporations that were forced by the government such as Colgate, P&G and HUL fetched good returns. “But there were many issues, where I suffered losses,” he said.Sekhri says there is no simple mantra for success in the stock market. His thumb rule? “Read, read and read, and do not follow others.”He does not follow large investors on Dalal Street. “While I keep myself abreast of what other players are doing, none of my investment decisions are influenced by them. Newspapers influence me and I also read many magazines. I read Warren Buffett ’s notes and annual reports of companies,” he said.Sekhri says one common thing about his investments is that most of his holdings were under-owned stocks at the time of his investment. “I have been a big investor in holding companies, and this has helped me earn multibagger returns,” he said.According to Sekhri, one should not mind investing in illiquid stocks, if they are quality businesses. “In fact, investment in illiquid scrips has been the most rewarding experience, both intellectually and financially. The challenge of locating these gems –after all no one invests in them or writes about them – is an exciting thing to do,” he says.Sekhri believes sectors like human resources, technology and advertising, media and entertainment should gain momentum in this market. “There have been a few listings from these sectors. However, valuations are key to investment decisions,” he said.He further said there are opportunities to gain or lose in all markets. “In the current market, there are several fundamentally strong shares, which can provide very good returns. Also, there are several midcaps which are highly undervalued and many of them export their goods and services. Several pharma companies have been beaten to attractive levels. Some of the cash-rich PSUs are dominant players in their products/markets. Many companies in the current turmoil have become available at close to cash levels. Those are tremendous opportunities,” he adds. | anmol sekhri (67) has seen many boom and bust cycles during his 45-year career. he has spotted many multibaggers in their early days: be it MRF, Kansai Nerolac, Eicher Motors, Jubilant Life, Honeywell, Florence Investech and Bengal Assam. | Positive |
https://economictimes.indiatimes.com/news/economy/foreign-trade/india-among-worlds-leading-exporters-of-creative-goods-un-report/articleshow/67537848.cms | UNITED NATIONS: India 's creative goods exports nearly tripled from USD 7.4 billion in 2005 to USD 20.2 billion in 2014, making it one of the world's leading exporters of such products in the top 10 developing economies, according to a UN report China is the biggest single exporter and importer of creative goods and services . China's trade in creative goods between 2002 and 2015 has been exponential, with average annual growth rates of 14 per cent, the United Nations Conference on Trade and Development (UNCTAD) report said.The second edition of the periodic Creative Economy Outlook: Trends in International Trade in Creative Industries examines the global picture and also features 130 country profiles with reported creative goods and services trade data. The data, which covers the period 2002 to 2015, shows the creative economy's contribution to world trade.Over this period, the value of the global market for creative goods doubled from USD 208 billion in 2002 to USD 509 billion in 2015."China, Hong Kong (China), India, Singapore, Taiwan Province of China, Turkey, Thailand, Malaysia, Mexico and the Philippines were the top 10 performing developing economies stimulating global trade in creative goods," the report said.Among developed economies, the US, France, Italy, the UK, Germany, Switzerland, the Netherlands, Poland, Belgium and Japan were the top 10 creative goods exporters.India's creative goods exports nearly tripled from USD 7.4 billion in 2005 to USD 20.2 billion in 2014, the report said.Design goods accounted for the largest share of creative goods exports with a value of USD 17.9 billion in 2014. Jewellery was a key export at USD 13.2 billion followed by fashion accessories at USD 3.2 billion.The US was India's top export partner for creative goods in 2005 but the country slipped to second place in 2014, when the UAE emerged as India's top trading partner, it said.The report noted that India's fashion industry is likely to continue its growth as the country has a large young population. Art crafts (carpet and yarn products) was another dynamic sector with exports at USD 1.5 billion in 2014. India had a positive trade balance in creative goods trade, which stood at USD 15.4 billion in 2014.In 2014, the main destination markets for India's creative goods exports were Asia (58 per cent), the Americas (20 per cent) and Europe (19 per cent).The report said India had become the centre for outsourcing work such as game development, game support services.In the coming years, the country is expected to become the hub for development, porting and dubbing of various games across the globe, due to low costs and the easy availability of game developers with world-class experience, it said."With the country's youth population standing at over 350 million, India is one of the largest markets for companies operating in the global gaming industry," the report said.Highlighting other creative aspects emerging from the country, the report also said that India makes more movies than any other country in the world."Fourteen million Indians go to the movies on a daily basis (about 1.4 per cent of the population of 1 billion) and pay the equivalent to the average day's wages (US USD 1-3) to see a film, of which Bollywood produces over 800 films each year. That is more than double the number of feature films produced in the US," the report said.Indian gastronomy is also undergoing rapid growth. Food service sales in the country are growing at about 10 per cent annually, making it one of the fastest growing sellers in the world.This growth is double the rate expected for the much more mature US' restaurant industry, and with a population quadruple the size, it said."These figures are significant on two fronts. The creative economy has both commercial and cultural worth. This dual value has led governments worldwide to focus on expanding and developing their creative economies as part of economic diversification strategies and efforts to stimulate prosperity and well-being," said Pamela Coke-Hamilton, who directs UNCTAD's trade division.The report said that globally design and visual arts are among the highest performing sectors with fashion, interior design and jewellery accounting for 54 per cent of creative goods exports in developed economies and 70 per cent (including toys) in developing economies."Although the downturn in global trade has impacted all industries, the report shows the creative economy is more resilient than most," said Marisa Henderson, chief of UNCTAD's creative economy programme.The report said that the Indian animation and visual effects industry (VFX) grew at 16.4 per cent in 2016 to reach a size of USD 8.2 billion.The State governments are implementing favourable policies and Maharashtra, Karnataka, Telangana have announced, or are coming up with, policies in support of the of the animation and VFX industry, it said."These would enable the Indian animation and VFX industry to effectively compete with established markets such as the US, Canada and emerging centres in Republic of Korea, France, China and Malaysia," the report said, citing a KPMG India-FICCI Indian Media and Entertainment Industry Report 2017.It said that visual effects are indispensable parts of filmmaking and the Indian film industry is the largest in the world in terms of number of films produced. | the creative economy is the biggest exporter and importer of creative goods. over this period, the value of the global market for creative goods doubled from USD 208 billion in 2002 to USD 509 billion in 2015. the us, France, Italy, the UK, Germany, Switzerland, the Netherlands, Poland, Belgium and Japan were the top 10 creative goods exporters. | Positive |
https://www.moneycontrol.com/news/business/markets/an-evening-walk-down-d-st-market-posts-biggest-single-day-gain-in-10-years-investors-richer-by-7-lakh-crore4459021-4459021.html | live bse live
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Market benchmarks Sensex and Nifty posted their biggest single-day gains in 10 years on September 20 after Finance Minister Nirmala Sitharaman announced a cut in corporate tax rates.
After starting the session on a flat note, Sensex surged 2,285 points while Nifty soared 677 points. Nifty Bank jumped over 2,661 points intraday as market experts and brokerages hailed the government's move.
The sharp rally in equities made investors richer by Rs 6.83 lakh crore in a single day as the cumulative market capitalisation of BSE listed firms jumped to Rs 1,45,37,378.01 crore from Rs 1,38,54,439.41 crore on the previous session.
The government's move of slashing corporate tax rate will have a chain effect and bodes well for the market in the long term, Rajat Rajgarhia, Managing Director & CEO of Motilal Oswal Financial Services, told CNBC-TV18.
"This is huge for the market. There were few announcements that were keeping sentiments in check as FM was trying to boost market sentiments and improve the state of the economy by boosting exports, banks consolidation, recapitalization and so on but reducing the corporate tax rate to 22 percent or domestic players and 15 percent for new entrants setting up
manufacturing units is a big boost," said Mustafa Nadeem, CEO, Epic Research.
Sensex closed with a massive gain of 1,921 points, or 5.32 percent, at 38,014.62, with 25 stocks ending in green and 5 in the red.
Hero MotoCorp, Maruti Suzuki, IndusInd Bank, Bajaj Finance and State Bank of India emerged as the top gainers in the Sensex index.
On the other hand, Power Grid, Infosys, Tata Consultancy Services, NTPC and Tech Mahindra closed in the red in the Sensex index.
Nifty closed at 11,274.20, up 569 points or 5.32 percent. Among the 50 stocks in the index, 44 logged gains and only six closed with losses.
BSE Midcap index outperformed Sensex, ending with a gain of 6.28 percent. However, the Smallcap index underperformed the benchmark as the index closed 3.94 percent up.
Barring BSE IT and Teck, all sectoral indices closed with gains. BSE Auto jumped 9.85 percent, ending the day as the top gainer among sectoral indices, followed by BSE Bankex (up 8.21 percent) and Capital Goods (up 7.93 percent).
IT stocks came under pressure after rupee grew stronger against the US dollar. The Indian currency settled 38 paise higher at 70.94 per dollar.
For the week, Sensex climbed 1.68 percent while Nifty advanced 1.80 percent.
Top news of the day:
In order to promote growth and investment, Finance Minister Nirmala Sitharaman on September 20 slashed the effective corporate tax from 30 percent to 25.17 percent, inclusive of all cess and surcharges for domestic companies.
The meeting of the Northern Zonal Council chaired by Union Home Minister Amit Shah began on September 20 morning. The grouping comprises Haryana, Himachal Pradesh, Punjab, Rajasthan, Jammu and Kashmir, Ladakh and the National Capital Territory of Delhi.
Bihar Chief Minister Nitish Kumar made it clear that his party will contest the 2020 state assembly polls together with the BJP as an ally of the NDA, reported IANS.
Senior BJP leader Chinmayanand was arrested by the Special Investigating team (SIT) probing the rape charges against him.
Stocks in news:
Shares of HDFC Bank surged 9.06 percent to Rs 1,200.10 on BSE on September 20 after the government announced corporate tax rate cut. Rajat Rajgarhia, Managing Director & CEO at Motilal Oswal Financial Services told CNBC-TV18 that most private banks would be immediate beneficiaries of the tax cuts announced today.
Shares of HDFC climbed 3.92 percent to Rs 2,052.10 after it said it will raise up to Rs 3,000 crore by issuing bonds to augment its long-term resources.
Shares of Yes Bank rose 2.40 percent to Rs 55.45, a day after Morgan Credits (MCPL), part of the promoter group of the company, sold 2.3 percent shareholding in the bank.
Extending their losing spree into the fifth consecutive session, shares of Zee Entertainment Enterprises closed 2.49 percent lower at Rs 301.10, following reports that the promoter has been restricted from selling stake in the media company.
Shares of Dewan Housing Finance Corporation (DHFL) remained on the downward trajectory for the fourth consecutive day. The stock closed 8.63 percent down at Rs 43.40 even as it received proposals to act as development managers in certain large projects.
Global Updates:
World shares rose on Friday as stimulus measures by major central banks eased worries about growth, especially in Asian markets, while oil headed for its best week since January, reported Reuters.
Asian market ended slightly higher. Shanghai Composite Index closed 0.24 percent up at 3,006.45, while Kospi closed at 2,091.52, up 0.54 percent. Nikkei settled 0.16 percent higher at 22,079.09.
Technical view on the market:
Nifty formed a long bull candle today, that has engulfed up the range of the last 4 weeks in a single day. The key overhead resistance of 11,150-180 has been broken on the upside and the Nifty closed above it.
"We observe an upside breakout as per weekly timeframe chart, after the consolidation movement of the last one month. The near term trend of the Nifty seems to have reversed up sharply and more upside could be in store in the coming weeks. Having reached the swing high of 11,381 in today's session, one may expect next upside targets of 11,600 for the next 1-2 weeks," said Nagaraj Shetti – Technical & Derivative Analyst, HDFC securities. | Sensex and Nifty post biggest single-day gains in 10 years. Sensex surges 2,285 points while Nifty soares 677 points. Sensex closed with massive gain of 1,921 points, or 5.32 percent, at 38,014.62. Sensex closed with massive gain of 1,921 points, or 5.32 percent. | Positive |
https://economictimes.indiatimes.com/industry/cons-products/electronics/reliance-set-to-bring-back-the-coolest-one-to-india/articleshow/71679828.cms | Kolkata: Kelvinator, the iconic refrigerator brand that branded itself as the “coolest one”, is making a comeback in India, courtesy Reliance Industries.The retail arm of India’s largest conglomerate, Reliance Retail , has signed an exclusive brand licensing, manufacturing, marketing and distribution deal for Kelvinator with Swedish appliance maker Electrolux , which owns the brand.Under the more than 10-year contract, Reliance will shortly relaunch the Kelvinator refrigerator and other appliances such as washing machines, air-conditioners and microwave ovens in phases to be sold through its network of stores and distributed to other consumer durable stores, an industry executive said. It is also evaluating whether to use the “the coolest one” tagline, he said.Reliance Retail said in its earnings presentation for the September quarter that it had entered into a long-term and exclusive brand-licensing arrangement with Kelvinator.However, the company did not respond to an email seeking confirmation of its plans. An email sent to Electrolux on Sunday was unanswered till press time. An industry executive said Reliance will target the mass to masspremium segment with the Kelvinator brand.“Since Reliance has all the rights over it, it can even use it as a price warrior brand for both its own stores and e-commerce venture to compete against value brands like BPL, Koryo, Haier and Whirlpool, which are pushing sales largely through affordable pricing,” he said.The Kelvinator brand licence was earlier with Videocon Industries, an arrangement that snapped early last year due to non-payment of royalty, another executive said.“The Kelvinator brand at its peak used to do Rs 1,000 crore-plus business. It has a good pull factor and Reliance can rapidly scale it up,” he said. Reliance will produce the Kelvinator range locally through third-party manufacturers.The Kelvinator brand was created in 1914 in the US as the name of one of the first electric refrigeration units for homes. The brand was in honour of inventor and scientist William Thomson, also known as Lord Kelvin, who developed the concept of absolute zero and after whom the Kelvin temperature scale is christened.By 1923, Kelvinator had gained 80% of the US electric refrigerator market and progressively expanded into Europe and the rest of the world. Electrolux currently sells Kelvinator fridges and air-conditioners in a few markets including Australia, where it has a significant share.Reliance Retail runs India’s largest consumer electronics retailing business through a network of over 8,200 stores, including the large format Reliance Digital and neighbourhood Jio Stores. The company has the exclusive sales and distribution rights for Sharp televisions, which it now sells through other multi-brand retailers. | the iconic refrigerator brand has signed a licensing, manufacturing, marketing and distribution deal with Swedish appliance maker Electrolux. under the more than 10-year contract, Reliance will shortly relaunch the Kelvinator refrigerator and other appliances. the brand was created in 1914 in the us as the name of one of the first electric refrigerator units for homes. by 1923, Kelvinator gained 80% of the US electric refrigerator market and was the name of one of the first electric refrigerators for homes. | Positive |
https://www.moneycontrol.com/news/business/sbi-relaunches-aadhaar-based-online-insta-saving-bank-account-through-yono-5395671.html | live bse live
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Country’s largest lender State Bank of India has re-launched ‘SBI Insta Saving Bank Account’ an Aadhaar-based instant digital savings account, for customers who would like to open an account online through bank’s integrated banking and lifestyle platform – YONO. This new service aims to provide convenient digital banking services.
This new service will offer complete paperless and instant digital savings account opening experience with just PAN and Aadhaar number. The SBI Insta Saving Bank Account holders can have 24x7 banking access. SBI will also issue basic personalized RuPay ATM-cum-debit card to all the new account holders of Insta Saving Bank Account.
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Customers just need to download YONO app, enter their PAN and Aadhaar details, submit OTP, and fill other relevant details to open the SBI Insta Saving Bank Account. The nomination facility is available for SBI Insta Saving Bank Account holders along with SMS Alerts and SBI Quick Missed call service. Once the process is complete, the account holder will get his/her account activated instantly and can start transacting immediately. Customers will have the flexibility to upgrade to full KYC by visiting their nearest SBI branch within one year’s time.
SBI chairman Rajnish Kumar said, “We are glad to re-launch SBI Insta Saving Bank Account. This account has all the features that would provide our potential customers a convenient, hassle-free and paperless banking experience without visiting the bank branch. In this digital age, we constantly aim to offer our customers the best digital banking experience backed up with the technology which would give them access to banking services anytime and anywhere. This product would be beneficial to customers in this prevailing COVID 19 situation, who can open Savings Account at the comfort of their homes, without visiting a Bank Branch”.
YONO SBI is to offer its customers a gamut of banking and lifestyle services at their doorsteps with just the click of a button. YONO SBI for the past two years is accepted greatly by the customers. The Platform has now reached global markets with YONO Global in UK & Mauritius. YONO has also crossed the landmark of 51 million downloads and 23 million registered users in a little over two years.
It has partnered with more than 100 e-Commerce players across 20 plus categories. SBI through YONO has also come up with various initiatives which include YONO Cash, PAPL, YONO Krishi and the likes, catering to all categories of customers.
Follow our full coverage of the coronavirus pandemic here. | SBI Insta Saving Bank Account' is an instant digital savings account. the service will offer complete paperless and instant digital savings account opening experience with just PAN and Aadhaar number. customers will have the flexibility to upgrade to full KYC by visiting their nearest SBI branch within one year's time.'sBI Insta Saving Bank Account' is available for customers who would like to open an account online through bank's integrated banking and lifestyle platform - YONO. | Positive |
https://www.livemint.com/Opinion/VqOaT6jIzQrE3uBE6fl76I/Karnataka-needs-political-maturity-not-oneupmanship.html | Karnataka’s business-friendly policies for knowledge-based industries such as information technology (IT) and biotechnology have won it the epithets of “IT capital", “BT capital" and “start-up capital". The leadership assumed by the state is not an accident. It is the result of a strong collaboration between government, industry and academia as well as deep involvement of a committed bureaucracy. This has happened over successive Bharatiya Janata Party (BJP), Janata Dal (Secular) or JD(S) and Congress governments.
Today, Karnataka contributes over 12% of India’s exports and it is also the highest software exporting state. At 10%, it is the third-highest contributor to India’s gross domestic product (GDP) and has the fastest growing gross domestic state product (GDSP). Karnataka has successfully created about 1.4 million jobs in the last four years. The per capita income at Rs1.75 lakh in 2017-18, is 56% higher than the all-India average of Rs1.12 lakh.
To prepare Karnataka for future business opportunities, the current government has taken several measures. To create a globally competitive start-up ecosystem, a multi-sector start-up policy was unveiled in 2015. The government has proposed to set up an incubation centre as well as a Karnataka Innovation Authority to promote start-ups. A “legal framework for innovation" has been envisaged to bring new and emerging technologies under a legal framework. The IT, BT and S&T department has been allocated Rs247 crore in the latest state budget.
An electric vehicles and energy storage policy was unveiled in 2017. An ambitious target of generating 6,000 megawatts (MW) of solar power by March 2021 has also been set.
Proactive government policies have ensured Karnataka ranks among the top 10 states in terms of “ease of doing business". These measures have also made the state the fourth largest recipient of foreign direct investment (FDI) between 2000 and 2016.
The outcome of the upcoming elections will be crucial as the incoming government will need to ensure that the state does not lose its economic growth momentum. It will need to come good on the promise of making Karnataka the most attractive investment destination and top job creator in the country. Hence, the continuity of policies is imperative, irrespective of who comes to power.
Importantly, Bengaluru has to be returned to its pride of place in the list of India’s best cities. While Bengaluru’s economy grew rapidly, its infrastructure failed to keep pace. Initiatives by citizens to fight for better governance of the city have been successful in getting the government to act. The state budget 2018-19 allocated over Rs4,000 crore to upgrade the city’s infrastructure.
An amount of Rs5,371 crore was allocated for the welfare of women and children, while Rs6,645 crore was earmarked for health and family welfare.
In the aftermath of the elections, it should not be a case of “one step forward, two steps back." If the incumbent government comes to power it will have to prove that it was not just paying lip service to development. If there is a change in government, the new political dispensation should not give in to the temptation of rolling back policies of the previous government when there is evidence that these are delivering.
We need a more development-oriented political agenda that rises above petty one-upmanship and instead focuses on putting the state on the path to robust, inclusive and equitable growth.
Kiran Mazumdar-Shaw is president of Bangalore Political Action Committee (B.PAC). She is also the CMD of Biocon Ltd.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | state has created about 1.4 million jobs in the last four years. it is the third-highest contributor to india’s gross domestic product (GDP). state has also been the fourth largest recipient of foreign direct investment (FDI). state has also set a target of generating 6,000 megawatts (MW) of solar power by 2021. | Positive |
https://www.moneycontrol.com/news/business/commodities/gold-can-claim-1800-in-the-near-term-ubs-5222221.html | Representative image
After a gloomy March, gold prices are back on the trot, claiming $1,700 levels earlier this month. The yellow metal can now "break the highs" seen earlier this year and climb to $1,800 per ounce, according to UBS Investment Bank.
"Gold is becoming attractive in this environment where uncertainty is very high, growth is expected to weaken, and at the same time you have negative real rates which make gold attractive to hold as a diversifier in investor portfolios," Joni Teves, the precious metal strategist at UBS Investment Bank, told CNBC. "There is growing potential (for gold) to break $1,800 (per ounce) in my view."
The New York-based firm has a near-term target price for gold at $1,790 per ounce.
At the time of writing this article, the price of spot gold was around $1,699.06 per ounce, an almost 12 percent increase year to date. Meanwhile, the Dow has plummeted by 17.8 percent.
Prior to coronavirus, investors were not taking shine to the yellow metal. With the US and global economy booming, investors preferred riskier assets. As a result, in August 2018, the demand for gold fell to its lowest level since 2009.
However, in this environment of uncertainty and negative real rates, investor interest has returned to the yellow metal, noted Teves.
For All Commodities Related News - Click Here | gold prices are back on the trot, claiming $1,700 levels earlier this month. the yellow metal can now "break the highs" seen earlier this year and climb to $1,800 per ounce. the price of spot gold was around $1,699.06 per ounce, an almost 12 percent increase year to date. the demand for gold fell to its lowest level since 2009. | Positive |
https://www.financialexpress.com/market/rupee-continues-to-rebound-surges-19-paise-against-us-dollar/1254485/ | The rupee surged by 19 paise to 68.65 against the US currency in early trade at the Interbank Foreign Exchange today as the dollar weakened globally, amid foreign fund inflows. Increased selling of the American currency by exporters and banks amid a higher opening in the domestic equity market lifted the domestic currency, dealers said.
The dollar extended losses against world currencies overseas after US President Donald Trump doubled down on his criticism of global monetary policy and the Federal Reserve last week. Further, a higher opening in the domestic equity market boosted the rupee, they added.
On Friday, the rupee staged an impressive rebound from life-time low levels, surging 21 paise to end at 68.84 against the dollar on suspected the central bank’s intervention to check volatility in currency markets.
Meanwhile, the benchmark BSE Sensex rose further by 79.40 points, or 0.21 per cent to trade at 36,575.77 in early trade. Foreign portfolio investors (FPIs) bought shares worth Rs 310.27 crore on Friday, as per provisional data. | the rupee surged by 19 paise to 68.65 against the US currency in early trade. the dollar extended losses against world currencies overseas. the rupee staged an impressive rebound from life-time low levels. the benchmark BSE Sensex rose further by 79.40 points, or 0.21 per cent. foreign portfolio investors bought shares worth Rs 310.27 crore on friday. | 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/india/india-moves-up-6-places-ranks-34th-on-world-travel-tourism-competitiveness-index-wef-report-4403291.html | India has moved up six places to rank 34th on world travel and tourism competitiveness index, driven by rich natural and cultural resources and strong price competitiveness, a WEF report said on September 4.
India's ranking improved from 40th to 34th, the greatest improvement over 2017 among the top 25 percent of all countries ranked in the report.
"India, which accounts for the majority of South Asia's T&T (travel and tourism) GDP, remains the sub-region's most competitive T&T economy, moving up six places to rank 34th globally," the report said.
As per the report, China, Mexico, Malaysia, Thailand, Brazil and India -- which are not high-income economies but rank in the top 35 in the overall list -- stand out in the Cultural Resources and Business Travel Pillar through their combination of rich natural and cultural resources and strong price competitiveness.
"India showed the greatest percentage improvement to its overall Travel & Tourism Competitiveness Index (TTCI) score, which has helped it become the only lower-middle income country in the top 35," the report said and lauded its natural and cultural assets and price competitiveness.
From a sub-regional perspective, the nation (India) has better air infrastructure (33rd) and ground and port infrastructure (28th), international openness (51st) and natural (14th) and cultural resources (8th).
Compared to global benchmarks, the country can also add price competitiveness (13th) to its roster of strengths, the report noted.
"India also greatly improved its business environment (89th to 39th), overall T&T policy and enabling conditions (79th to 69th), infrastructure (58th to 55th) and information and communications technology (ICT) readiness (112th to 105th)," it noted.
However, India still needs to enhance its enabling environment (98th), tourist service infrastructure (109th) and environmental sustainability (128th), the report said.
The Travel & Tourism Competitiveness Index (TTCI), that covered 140 economies, measures the set of factors and policies that enable sustainable development of travel and tourism sector which contributes to the development and competitiveness of a country.
Spain held on to the top spot in the World Economic Forum's (WEF) latest Travel and Tourism Competitiveness Report (TTCR), which ranked 140 countries on their relative strengths in global tourism and travel.
Spain was followed by France, Germany and Japan, with the United States replacing the UK in the top five.
Others in the top 10 list include the United Kingdom at the 6th place, Australia (7th), Italy (8th), Canada (9th) and Switzerland (10th).
The report further added that Asia-Pacific was one of the fastest-growing travel and tourism regions in this year's ranking.
Japan remains Asia's most competitive travel and tourism economy, ranking 4th globally, while China is by far the largest travel and tourism economy in Asia-Pacific and 13th most competitive globally (up two spots).
The Philippines has shown improvement, moving up four places to rank 75 globally.
Pakistan (121st) remains the least competitive country in South Asia when it comes to T&T, including the region's least favourable safety and security (134th) conditions.
The biennial study showed resilient growth in travel and tourism sector, with scores rising in most countries, but also warned of an approaching 'tipping point', where factors like less expensive travel and fewer tourist barriers increase demand to unsustainable levels.
"Countries must look beyond their short-term gains from travel and tourism to ensure a positive future for their economies. Travel and tourism can drive economies, but only if policy-makers ensure proper management of their tourism assets, which requires a holistic, multi stakeholder approach," said Lauren Uppink, Head of Aviation, Travel and Tourism at WEF.
The 140 economies were ranked in four sub-indexes: enabling environment, travel and tourism policy and enabling conditions, infrastructure, and natural and cultural resources.
Together, these four sub-indexes include a total of 14 pillars, which are used to score a country's overall travel and tourism competitiveness. | India moves up six places to rank 34th on world travel and tourism competitiveness index. the country accounts for the majority of South Asia's T&T (travel and tourism) GDP. the ranking is driven by rich natural and cultural resources and strong price competitiveness. the country can also add price competitiveness to its roster of strengths, the report says. a report by the world economic forum ranked 140 countries on their relative strengths in global tourism. | Positive |
https://www.moneycontrol.com/news/india/indias-personal-wealth-may-grow-at-13-to-5-tn-bcg-3024251.html | The country's personal wealth is expected to grow at a CAGR of 13 percent to $5 trillion by 2022, according to a report by the Boston Consulting Group (BCG).
Its personal wealth was estimated to be $3 trillion in 2017.
The country is also expected to become the eleventh wealthiest nation globally by 2022 in terms of total personal wealth, improving its rank by four places from 2017, the report said.
The US leads the chart in terms of total personal wealth with $80 trillion in 2017, which is projected to touch $100 trillion by 2022. China is ranked second, with a total personal wealth of $21 trillion, which is expected to more than double to $43 trillion by 2022.
The report noted that India constitutes the second largest pool of wealth from emerging markets in the coming years, with $2.2 billion.
It is the fifth largest Asian market in number of affluent, high net worth, and ultra high net worth individuals.
There were 322,000 affluents, 87,000 high net worth individuals and 4,000 ultra high net worth individuals in the country in 2017, according to the report.
It observed that nearly 70 percent of the country's personal financial wealth would be accessible to wealth managers in 2022.
The 70 percent investable wealth in the country includes listed equity, bonds, investment funds, currency and deposits, and other smaller asset classes, while the 30 percent non-investable wealth includes life insurance and pensions, unlisted equity and other equity.
The report also noted that around 6 percent of the private wealth is currently held offshore. | the country's personal wealth is expected to grow at a CAGR of 13 percent to $5 trillion by 2022. the country is expected to become the eleventh wealthiest nation globally by 2022. the country is expected to become the eleventh wealthiest nation globally by 2022. the country is expected to become the eleventh wealthiest nation globally by 2022. | Positive |
https://www.businesstoday.in/trending/box-office/darbar-box-office-collection-day-9-rajinikanth-film-superhit-rs-200-crore-worldwide-a-step-away/story/394076.html | Darbar box office: Rajinikanth's latest offering Darbar is performing very well in India as well as overseas. Darbar's box office collection has set the cash registers ringing in the Southern states as well as in the overseas markets. Rajinikanth's film's exceptional earnings come even as the film is clashing with two superhit movies - Mahesh Babu's Sarileru Neekevvaru and Ajay Devgn's Tanhaji: The Unsung Warrior - along with Deepika Padukone's acclaimed movie Chhapaak.
Darbar's box office collection has been estimated at Rs 132 crore in India and Rs 56 crore in the overseas markets. The film is expected to have earned Rs 5 crore on its 9th day, taking the worldwide collections to over Rs 190 crore. It is just a matter of time before Rajinikanth's film clocks in Rs 200 crore.
Released on January 17, Darbar has been rolled out in Tamil, Telugu, Hindi and Malayalam languages. The film has witnessed fine earnings from Chennai, Vellore, Coimbatore areas while it is lagging behind in Thiruvananthapuram and Puducherry regions.
Besides Darbar's box office collection, the film is estimated to have made Rs 220 crore from its pre-release business including the sale of its worldwide theatrical rights and all non-theatrical ancillary revenue. This is reportedly the second-highest earning in pre-release business of a Kollywood film after the superstar's blockbuster film, 2.0.
The cop drama directed by AR Murugadoss follows Rajinikanth in two avatars - one of a cop named Aaditya Arunasalam and the other of a social activist. Darbar also features Nayanthara, Suneil Shetty, Prateik Babbar, Nivetha Thomas and Yogi Babu in prominent roles.
Also read: Darbar Box Office Collection Day 8: Rajinikanth's film earns Rs 60 crore in Tamil Nadu in one week
Also read: Darbar Box Office Collection Day 7: Rajinikanth's cop drama just shy of Rs 200 crore milestone worldwide | darbar's box office collection has been estimated at Rs 132 crore in india and Rs 56 crore in the overseas markets. the film is expected to have earned Rs 5 crore on its 9th day, taking the worldwide collections to over Rs 190 crore. the film has been rolled out in Tamil, Telugu, Hindi and Malayalam languages. it is estimated to have made Rs 220 crore from its pre-release business including the sale of its worldwide theatrical rights and all non-theatrical ancill | Positive |
https://www.moneycontrol.com/news/business/india-hopeful-to-occupy-second-slot-in-global-crude-steel-output-steel-ministry-2942881.html | India is hopeful of occupying the second slot in global steel output after China while the government has also taken steps to encourage secondary steel producers to boost performance, the Steel Ministry said.
Growing in conjunction with the primary steel sector, the secondary steel sector holds enormous potential for growth and opportunities in the country, the ministry said in a statement.
"Strong performance of the secondary steel sector has added muscle to India's steel production. Encouraged by the overall potential, the Government of India has taken various initiatives to improve the performance of this sector....Based on the present growth pattern (of steel), it is expected that India will rise to the second position after China," the statement said.
The National Steel Policy 2017 has set a target of 300 million tonnes per annum (MTPA) of production capacity by 2030.
The production capacity in 2017-18 has already reached 137.97 million tonnes (MT).
Enumerating the steps to promote secondary steel producers besides instituting award, the government said these included supporting energy efficiency projects and R&D activities, strengthening institutional support and protecting domestic producers from below-cost import from foreign countries through anti-dumping measures.
The ministry will be giving away awards to the secondary steel sector on September 13, 2018 in New Delhi. The awards have been instituted in order to encourage the secondary steel sector as it plays a key role as a growth engine for the national economy and employment generation.
The statement said one of the significant aspects of the secondary steel sector is that it reaches out to millions of people in the rural areas, meeting rural demand.
This sector has certain specific advantages over the primary steel sector such as lower capital and land requirements and the capability to produce special sections and customized products, the statement said.
It added that the sector is bound to play a major role in actualising the growth target of 300 million tonnes of steel production capacity by 2030.
The secondary steel sector comprises various sub-sectors such as sponge iron units, re-rolling mills, cold rolling mills, galvanising units, wire drawing units, and tinplate producers with annual production capacity of less than 1 million tonne and they meet the country's demand for value added steel products.
The World crude steel production in 2017 registered a growth rate of about 5.3 percent as compared to the previous year. The global production in 2017 stood at 1691.2 million tonnes. | the secondary steel sector holds enormous potential for growth and opportunities in the country. the government has taken steps to encourage secondary steel producers. the ministry will be giving away awards to the secondary steel sector on September 13, 2018. the country is expected to occupy the second position in global steel output after china. a growth target of 300 million tonnes per annum of production capacity by 2030 is set. | 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://www.financialexpress.com/market/britannia-rating-buy-quarter-performance-came-as-positive-surprise/1984224/ | While Britannia Industries’ (BRIT’s) Q4FY20 revenue was in line with the Bloomberg consensus estimate, Ebitda was a tad better. March witnessed a decline of 7-10% on revenue/net income due to the COVID-19-related lockdown. However, April and May garnered very strong sales growth of 20%/28%, driven by:
(i) pantry stocking during the lockdown and an increase in in-home consumption; (ii) inventory fill-up in the distribution channel; and (iii) one-off distribution of biscuits to migrant population by charitable organisations. Raw material prices have corrected sharply in Q1FY21 due to weak demand conditions, and could aid in gross margin expansion near term.
While BRIT’s results and the Q1FY21 commentary were a positive surprise, overall performance was in sync with our medium/long term positive thesis on the company. BRIT is likely in its sector to be least impacted by the consumption downturn, in our view. We expect it to be a beneficiary of: (i) the shift to in-home, packaged food consumption; (ii) a wide portfolio of new products/new categories (salted snacks, milk shakes, cream wafers, croissants); (iii) stronger direct reach; (iv) share gains from regional/local players; and (v ) gradual margin expansion driven by R&D, value engineering and cost-efficiency initiatives. We reiterate Buy rating.
Q4FY20: Marginally better than estimates; volume growth of c.1%
Consolidated sales/Ebitda/PBT/PAT grew 2%/4%/2%/26%y-o-y vs Bloomberg consensus estimates of +2%/ +2%/ +2%/ +8%. Volume grew c.1%, while pricing was stable. GPM contracted 150bp y-o-y to 39.7% due to input cost inflation, while OPM inched up by 20bps y-o-y at 15.8% due to lower other expenses. PAT growth was higher, largely due to a lower tax rate (due to the corporate tax rate cut and also some tax settlement credit from a government amnesty scheme). Standalone sales/ Ebitda/PBT/PAT grew by 1%/2%/ 0.5%/32% y-y.
Maintain Buy with revised target price of Rs 4,000
We increase FY20F/21F/22F PAT by 4%/10%/11% as we factor in the better-than-expected Q4FY20 and extremely strong Q1FY21 commentary. We value Britannia at a P/E of 52x FY22F EPS (unchanged), in line with its past three-year average trading multiple. We maintain our Buy rating with a revised target price of Rs 4,000 (from Rs 3,595). The stock trades at 45x FY22F EPS. Risks: slower-than-expected volume growth in biscuits, weak demand traction in new product categories, higher-than-estimated input cost inflation | Britannia Industries' (BRIT's) Q4FY20 revenue was in line with the Bloomberg consensus estimate. but Ebitda was a tad better. April and May garnered very strong sales growth of 20%/28%. raw material prices have corrected sharply in Q1FY21 due to weak demand conditions. we reiterate Buy rating on the company. | Positive |
https://economictimes.indiatimes.com/markets/commodities/gold-may-try-to-scale-rs-32000-mark/articleshow/67483363.cms | NEW DELHI: Crude oil cooled off slightly in global markets on Friday, weighed down by weak global growth outlook However, the commodity is set to mark a weekly gain, backed by lower supply on output cuts. Gold prices climbed globally as the dollar fell on expectations that the US central bank may pause interest rates hikes if the US economy slows this year, Reuters reported.Gold, silver and crude oil went up in the domestic futures market.MCX Gold traded at Rs 31,965 per 10 grams, up Rs 85, while silver rose Rs 169 to Rs 39,454 a kg around 10:35 am. Crude oil prices stood at Rs 3,702 per barrel, up Rs 24.We bring you projections on commodity trade by various brokerages.Here's outlook on agri-commodity by Geojit Financial Services.Jeera March NCDEX: Though short covering rallies continued yesterday’s session as well, it showed the inability to move above the trend line resistance placed at Rs 17,180. Major trend continues to be negative in the near run. For the day, prices are likely to test further lows of Rs 16,750-16,500 or even lower to Rs 16,200 levels.Soybean February NCDEX: The Doji pattern on the daily chart signals a nearby reversal. Hence, a slip below Rs 3,570 could trigger profit booking initially towards Rs 3,570-3,510 levels. On the other side, it is required to break the resistance at Rs 3,653 for the bulls to get active towards Rs 3,725 levels.Cardamom February MCX: If prices sustain above Rs 1,560, it could continue upside moves targeting Rs 1,610-1,635 levels.Turmeric March NCDEX: A choppy to a negative trading session is expected for the commodity today.Dhaniya March NCDEX: As long as prices struggle to move above Rs 6,955, it is expected to see a downside correction to Rs 6,600-6,530 levels.Guarseed10 February NCDEX: Current weakness is likely to stretch to Rs 4,150-4,125-4,080 levels.Guargum5 February NCDEX: Prices broke the immediate trend line resistance placed at Rs 8,400. If it sustains below the same, it could expect a sharp selloff to Rs 8,100-8,000 levels.Chana March NCDEX: Sentiment remains weak. So, expect a lower correction to Rs 4,290-4,260 levels.Refined Soy oil February NCDEX: If prices stay above Rs 745, expect a short covering rally towards Rs 748-752 levels.CPO January MCX: As prices stay above the trend line support at Rs 535, it could see more upside moves pointing to Rs 544-546 levels.Below is a head-up on outlook by SMC Global.Bullion: The bullion counter may trade with an upside bias. Gold can find support near Rs 31,800 on MCX and can recover towards Rs 32,000. Silver can find support near Rs 39,300 and recover towards Rs 39,600.Base metals: Base metal prices may witness some lower level buying. Copper may recover towards Rs 422 while taking support near Rs 410 on MCX. Zinc can move sideways as it can face resistance near Rs 176 while it has support near Rs 172. Lead can take support near Rs 137 and can face headwinds near Rs 140. Nickel can witness further recovery and can test Rs 800. Aluminium can face resistance near Rs 132 and can find comfort near Rs 129.Energy: Crude oil may witness profit booking at higher levels. It can face resistance near Rs 3,750 while it has support near Rs 3,600. Natural gas may trade sideways as it can move in the range of Rs 205-214 on MCX. | gold, silver and crude oil went up in the domestic futures market. gold traded at Rs 31,965 per 10 grams, up Rs 85, while silver rose Rs 169 to Rs 39,454 a kg around 10:35 am. crude oil stood at Rs 3,702 per barrel, up Rs 24. jeera March NCDEX: though short covering rallies continued yesterday, it showed the inability to move above the trend line resistance placed at Rs 17,180. | Positive |
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