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https://www.financialexpress.com/jobs/job-seekers-alert-heres-the-gold-mine-you-should-explore/1165252/ | Global technology major IBM has said there is a massive shortage of cyber security professionals in the country, urging young graduates to look this segment, which is a high-margin segment for companies, as a lucrative career option. The company, which looks at India both as a market as well as a talent pool to serve the global markets on cyber security, said a whopping 3 million cyber security professionals are required in the country but the supply is not even 1 lakh now, Kartik Shahahni, integrated security leader for IBM India and South Asia, told PTI here. “Can I find people, yes I can. But can I find enough number of people? There is obviously an opportunity for more number of people than we actually have now,” Ananda K Vaideeswaran, director and global integrated leader, chipped in saying.
Shahahni explained that security solutions currently contributes in “double-digit percentages” to IBM India’s revenue at present, whereas its share of the total staff is much smaller. Stating that the cyber security professionals are “more productive” as it is a margin accretive vertical, he said, “the amount of revenue a security professional can bring to us is far higher than the amount of revenue a non-security professional can.” The comments come amid rising concerns about the information technology sector from a workforce intake perspective. As more and more tasks get automated with the advent of newer technologies such as artificial intelligence and machine learning, fewer number of people are required by the USD 160-billion domestic IT sector to do the same work compared to the past when the industry was one of the leading job creators absorbing millions annually.
The IBM executives declined to give a clear answer whether cyber security can emerge as a much-needed succour from an employability perspective, but explained that different skillsets and approaches are required for grabbing such jobs. Vaideeswaran said there is a need for changes from the school and graduation level to the post-graduate level, which will help the industry get the right kind of people. For those who do look at cyber security, there is a need to look beyond ethical hacking, he said, adding this branch represents only 5 per cent of the security needs. “Not enough youngsters look at cyber security as a job opportunity.
That is probably an area where we can do a lot as an industry,” he said. He said IBM has been working with universities and tech schools to get the necessary manpower for its the business, and also works with the Data Security Council of India and industry lobby Nasscom on the same front. IBM India has tied up with Mody University of Science & Technology, Rajasthan, Dehradun Institute of Technology, Chandigarh University and Geethanjali College of Engineering & Technology, Hyderabad amongst others, a company spokesperson said. | technology giant says there is a massive shortage of cyber security professionals. urging young graduates to look at this segment as a lucrative career option. comments come amid rising concerns about the information technology sector. fewer number of people required by USD 160-billion domestic IT sector. but execs say different skillsets and approaches are required for grabbing such jobs. | Positive |
https://www.businesstoday.in/current/economy-politics/npci-launches-subsidiary-to-venture-into-global-markets/story/413523.html | The National Payments Corporation of India (NPCI) on Wednesday announced the launch of a subsidiary for its international growth ambitions. The subsidiary, NPCI International Payments Ltd (NIPL), will facilitate the body's "ambition" of venturing into newer international markets and co-create payment systems with other nations, as per an official statement.
The announcement comes a day after the Reserve Bank of India (RBI) came out with guidelines for creation of other payment platforms with a view to de-risk the system. NIPL has been tasked with exporting NPCI's indigenously developed offerings and technological acumen to foreign markets and its focus will be internationalisation of the RuPay and UPI (unified payment interface) platform, an official statement said.
Also read: Banks expected to restructure loans up to Rs 8.4 lakh crore after RBI decision: IndRa
NPCI said its platforms have been cost effective, secure, convenient and instantaneous and several nations have displayed an inclination towards establishing a 'real-time payment system' or 'domestic card scheme'. "Several countries such as Asia, Africa and the Middle East have displayed interest towards replicating our model in their own nations," NPCI Managing Director and Chief Executive Officer Dilip Asbe said.
NPCI, which is owned by local lenders, has appointed Ritesh Shukla as the chief executive of NIPL, it said adding that he joins from rival Mastercard's Middle East and North Africa (MENA) team. He will be supported by Anubhav Sharma, head of international business for partnership, business development and marketing, and Rina Penkar, head of international business for product development, in NIPL's core team, as per the statement.
Also read: COVID-19 impact: Around 40% of restaurants may not reopen again | NPCI has launched a subsidiary for its international growth ambitions. the subsidiary, NPCI International Payments Ltd (NIPL), will facilitate the body's "ambition" of venturing into newer international markets. the announcement comes a day after the Reserve Bank of India (RBI) came out with guidelines for creation of other payment platforms. NPCI said its platforms have been cost effective, secure, convenient and instantaneous. | Positive |
https://economictimes.indiatimes.com/news/economy/finance/morgan-stanley-to-invest-more-in-india-says-ceo-james-gorman/articleshow/65894156.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://economictimes.indiatimes.com/markets/stocks/news/as-politicians-promise-the-moon-to-the-poor-d-street-knows-where-to-look-for-money/articleshow/68738059.cms |
NEW DELHI: After a pro-poor Congress manifesto for the ensuing general election, Dalal Street is bracing for an equally doleout-heavy, if not heavier, election manifesto from the BJP. The saffron party is scheduled to unveil its poll pledges next week.Smart stock investors are taking cues from rising rural focus and greater inclinations among political parties to woo the poor to draw out an investment theme around it. That is cue for the FMCG sector, the most likely immediate beneficiary of higher rural income, which is otherwise staring at bleak days ahead in view of a poor monsoon forecast, weak volume growth and lofty valuations.There is a clear tilt towards giving income support to the poor via direct benefit transfers, says IIFL Institutional Equities. “With a spate of farm loan waivers, the PM Kisan Yojana and now the Congress’ proposed NYAY scheme, FMCG consumption is bound to increase. The stimulus may lead to demand-pull inflation in agricultural products, which may become another booster dose for farmer income,” the brokerage said.With NYAY or Nyuntam Aay Yojna, the Congress is promising Rs 72,000 per year basic income to 5 crore families. It has also promised universal farm loan waiver and an increase in social sector spending.A promise to waive farm loans worked well for the Congress party in the 2018 state elections in the Hindi heartland states of Madhya Pradesh, Rajasthan and Chhattisgarh.“As the game of populist one-upmanship heats up, we expect the BJP to release a pro-poor, pro-farmer manifesto over the next one week,” Nomura India said.In the February Union Budget, Interim Finance Minister Piyush Goyal announced Rs 6,000 per year support to farmers, who own up to 2 hectares (5 acres) of land, under a direct income support scheme, called PM Kisan. Part of that money has started flowing into the hinterland already, though analysts say it may not have any material impact on consumer demand immediately.The BSE FMCG index is down 2 per cent so far this year compared with an 8 per cent rise in Sensex. But a demand revival appears to be on the cards.“Pockets of rural distress have hogged limelight over the past few months and seem to have finally bitten the most defensive pack – consumer staples. But we have reasons to believe this slowness would be shortlived. We would watch out for intensity of direct government transfers (DBTs), El Nino impact on monsoon, liquidity situation and any increase in competitive intensity in populism at political level,” Edelweiss said.NSSO data shows the average consumption of low-income families, the bottom 20 per cent, is about half the all-India average.With the promised income support (NYAY), poor families are expected to start spending in line with the next 23 per cent population.“The spending of this 23 per cent is 35-40 per cent higher than the lowest 20 per cent. This could result in a 4 per cent increase in FMCG demand (including spirits and cigarettes), as a direct consequence of the NYAY scheme, assuming this is an incremental expenditure by the government and would be implemented immediately,” IIFL said.The bottom 20 per cent population’s consumption of FMCG goods such as biscuits, detergents, soaps and haircare accounts for only 10-11 per cent of the total. Categories such as cigarettes and kitchen appliances are more discretionary in nature and, therefore, the bottom 20 per cent population accounts for a lower percentage of sales in these categories.“When consumers move from the bottom 20 per cent to the next 23 per cent of consumption, their expenditure on FMCG categories such as hair care, detergents, soaps and biscuits would move up by 34-40 per cent. For discretionary categories such as kitchenware, cigarettes and IMFL, it would go up by 207-247 per cent, albeit on a very small base,” IIFL said.A research by market research firm Nielsen showed retail sales of packaged FMCG goods grew at 11 per cent in 2018.SBI Economic Wing says PM-KISAN is not enough to propel rural demand. “The scheme, which has been introduced to address farmer distress, is expected to have less impact on both consumption and food prices,” it said in a note.Monsoon remains a cloud over project FMCG demand revival. Private weather forecaster Skymet says there is only a 30 per cent chance of normal rains, which delivers about 70 per cent of the country’s annual rainfall on which 60 per cent of Indian farmers depend. The probability of a below-normal monsoon, it said, is a high 55 per cent.“Due to the possibility of an imminent drought, we would not be in a hurry to upgrade our estimates for FMCG stocks,” IIFL said.Top FMCG companies such as Britannia, HUL and Marico did not have a great quarter in January-March. Brokerage Edelweiss Securities has projected Britannia’s volume growth at 7 per cent, HUL’s 6 per cent and Marico’s at 6.5 per cent.The brokerage estimates Bajaj Corp, Colgate and Dabur to post volume growth in the 4–5 per cent range. GCPL is seen reporting no growth at all. ITC’s cigarette volumes are seen growing at 5 per cent YoY, but on a negative base of 2 per cent. Volume growth for paint companies such as Asian Paints, Berger and Pidilite is seen at 9–10 per cent YoY. | saffron party is scheduled to unveil its poll pledges next week. smart stock investors are taking cues from rising rural focus. there is a clear tilt towards giving income support to the poor. the BJP is promising Rs 72,000 per year basic income to 5 crore families. the saffron party has promised universal farm loan waiver and an increase in social sector spending. | Positive |
https://economictimes.indiatimes.com/markets/ipos/fpos/grey-market-premium-of-happiest-minds-shoots-up-75-ahead-of-ipo/articleshow/77924999.cms |
Happiest Minds’ Rs 700 crore IPO opens on Sept 7; here's everything you need to know Happiest Minds Technologies’ initial public offer (IPO) to raise up to Rs 702 crore will open on September 7. The price band of the issue has been fixed at Rs 165-166 per share. Happiest Minds is seeing growth revive in education, healthcare and information security solutions as global customers step up technology investments to keep pace with rising demand from their clients, its chairman Ashok Soota told ET NOW. Soota, 77, and veteran of India's IT space who plunged into being an entrepreneuer in his late 50's is taking the second company he has built to the public markets.
New Delhi: Grey market is buzzing as Happiest Minds Technologies readying to hit the market with its initial public offering on September 7. The issue can be subscribed till September 9.The grey market premium on the issue has risen by Rs 115-125 per share over the IPO price band of Rs 165-166 per share.The IPO by the digital transformation IT consulting and services company would include a fresh issue of Rs 110 crore and an offer for sale of up to 35,663,585 equity shares by promoters.Strong and experienced promoters, along with a niche business model and exponential growth prospects are the prime reasons cited for the hefty premium in grey market, said dealers in the unofficial market for unlisted shares Narottam Dharawat of Dharawat Securities, a Mumbai-based firm that deals in unlisted market, said the niche business model eliminates competition. “Such firms enjoy the pricing power hands down,” he said.Ashok Soota, promoter of Happiest Minds, was the founder of midcap IT firm Mindspace, which was later taken over by Larsen & Toubro group. The industry veteran previously had a long stint in Wipro from 1984 to 1999.According to a report from Axis Capital, Happiest Minds’ business is divided into the three business units: Digital Business Services (DBS), Product Engineering Services (PES) and Infrastructure Management & Security Services (IMSS).Its business units are supported by three centres of excellence, including Internet of Things (IoT), Analytics/Artificial Intelligence (AI) and Digital Process Automation (DPA). As of June 30, 2020, Happiest Minds had 148 active customers.As much as 97% of the company’s revenue comes from digital, which is much higher than peers Infosys , Cognizant and Mindtree, where the average contribution from digital stands at 40-50%. “Digital is growing much faster than traditional business,” Soota said in a virtual media briefing.Off-market dealers find it a ‘value’ buy. The small size of the issue is another factor contributing to euphoric response in the grey market. They find the issue fairly priced.Abhay Doshi, an independent dealer from unlisted shares, said the company ticks all the checkboxes of being a growth pick. “This is a stock for the portfolio, and not just listing gains. The retail portion is very less leading to the buzz,” he said.Investors can bid for a minimum of 90 shares and in multiples of 90 equity shares thereafter. The face value of the equity shares is Rs 2 per share.The company’s revenues for FY20 stood at Rs 714.2 crore growing at a CAGR of 20.8% between FY18 and FY20. Revenues for the first quarter ended March stood at Rs 187 crore.Vinit Bolinjkar, Head of Research at Ventura Securities, said the company is active in the high growth digital business. “Flourishing work from home and thrust of cost cutting measures will add to prosperity of the business,” he said.He said post equity dilution, the stock will be available at a P/E multiple of 12.7, which is quite cheap compared with its listed peers. Bolinjkar gave a ‘subscribe’ rating to the issue.ICICI Securities and Nomura Financial Advisory and Securities (India) are the book running lead managers to the issue while KFin Technologies is the registrar. | the initial public offer (IPO) to raise up to Rs 702 crore will open on September 7. the price band of the issue has been fixed at Rs 165-166 per share. chairman of the company, 77, is taking the second company he has built to the public markets. grey market premium on the issue has risen by Rs 115-125 per share over the IPO price band of Rs 165-166 per share. | Positive |
https://www.moneycontrol.com/news/business/markets/history-repeats-these-5-traits-must-for-a-multi-million-player-to-become-a-multi-billion-giant-5508461.html | Manish Jain
'Multi-baggers': what an alluring yet elusive concept. A dream that every investor cherishes and yet only a few are able to achieve. The trick is to identify a company early in its life cycle, and hold on to it for a long time. Sounds simple but believe me it is quite complicated to execute.
The moot point here is — how do we identify a great company? A business that would continue to register steady yet consistent growth year after year, to help us compound our wealth. Well, in my 16 years in equity markets, I have seen many such companies, which have gone from being multi-million to multi-billion dollar in market cap. Each one of these businesses have five common traits. Look out for businesses that possess these and you have hit a home run!
Let’s take a look at these common traits:
A. Insatiable hunger for growth: Be it volume growth or margin expansion, great businesses never rest on their laurels. Their hunger for growth is always insatiable. However, not just growth, but sustainable and steady growth while containing the balance sheet risk. A steady mid-teens growth over long periods of time works wonders for the power of compounding.
B. Market leadership: A strong leadership position with competitive advantage is extremely important. As industry grows all participants benefit but the bulk of the benefit goes to the top player. A leader should be able to shape the industry growth path, overcome obstacles and lead into the future. These traits make for a sound long-term investment.
C. Constant innovation: This is needed to create new categories, which can be the second and third leg of growth. When the current business starts maturing, there needs to be a backup option or maybe even two. Great leaders always think ahead and are preparing for the long term. The innovation needs to be synergistic and should expand the horizon.
D. Great HR practices: Nurturing talent is always very important. Any business is only as good as the people who lead it. It is not only important to just attract talent, but to retain it and constantly create a work environment, which is conducive to personal and professional growth. This is fairly easy to gauge. Any great company is a breeding ground for talent and industry should be filled by people who have started and built their careers in these companies.
E. Balance sheet balance: Leverage can be a boon as well as bane. All great businesses are built on the foundation of a strong and light balance sheet, which are ideally free, or as low as possible. When the business cycle goes in to a downturn, it is businesses with strong balance sheets that survive and thrive.
At "Coffee Can" we say, history is a mirror into the future. The way businesses have performed in the past, is the way they are likely to behave in the future as well. So invest for growth, steadiness and consistency, and don't fall for the value trap. A strong portfolio of leaders, long term and low churn is the ideal way to make money in equities.
(The author is Fund Manager - Coffee Can PMS at Ambit Asset Management.)
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. | manish jain has seen many companies go from being multi-million to multi-billion dollar in market cap. each of these businesses have five common traits. look out for businesses that possess these and you have hit a home run. a steady mid-teens growth over long periods of time works wonders for the power of compounding. a strong leadership position with competitive advantage is extremely important. | Positive |
https://www.moneycontrol.com/news/india/coronavirus-wrap-may-12-pm-modi-announces-economic-package-air-india-headquarter-sealed-5258221.html | Prime Minister Narendra Modi, in his address to the nation today, highlighted that self-reliance would be important for India in the post-COVID world.
The prime minister also announced an economic stimulus, and said that the Indians should be "vocal about local".
Here are all the latest updates:
>> PM Modi also said Lockdown 4.0 will be a new one, with new rules. It will be implemented based on suggestions from the states and details of the same will be announced before May 18.
>> He emphasised the need for a self-reliant India, the five pillars of which will be economy, infrastructure, technology-driven system, demography and demand.
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
>> PM Modi announced a special economic relief package in light of the ongoing situation due to the COVID-19 outbreak. He said the economic measures earlier announced by the government to tackle the COVID-19 pandemic, steps taken by the Reserve Bank of India (RBI), and this latest package will come up to a total of Rs 20 lakh crore, nearly 10 percent of India's gross domestic product (GDP).
>> Air India said that it is planning to operate 149 repatriation flights to 31 countries in phase II of Vande Bharat Mission.
>> 6,037 Indians have been flown back to India via 31 inbound flights operated by Air India and Air India Express under the ‘Vande Bharat Mission’ in five days beginning from May 7.
>> Filling up of a detailed questionnaire related to COVID-19, carrying no cabin baggage, using Aarogya Setu app, and reaching airport at least two hours before departure might be among requirements for passengers during initial phase after resumption of commercial flights.
>> Indian Railways began restoration of passenger train services with 8 trains today. Starting in a graded manner, these trains would run from New Delhi, Mumbai, Howrah, Ahmedabad, Patna and Bangalore.
>> A high-powered committee appointed by the Maharashtra government decided to temporarily release around 50 percent prisoners to de-congest jails across the state.
>> Russian President Vladimir Putin's spokesman, Dmitry Peskov, was hospitalized with the coronavirus.
>> British PM Boris Johnson warned that a mass vaccine for the novel coronavirus may be over a year away and, in the worst-case scenario, may never be found.
>> Air India HQ was sealed for two days after an employee tested positive for the novel coronavirus.
>> Maharashtra government allowed liquor licence holders to home deliver alcohol. | pm Narendra Modi says self-reliance is important for India in post-COVID world. he also announces an economic stimulus, and says the Indians should be "vocal about local" a vaccine works by mimicking a natural infection. it also helps quickly build herd immunity to put an end to the pandemic. a vaccine is a vaccine that is given to healthy people and vulnerable sections. | Positive |
https://www.financialexpress.com/lifestyle/travel-tourism/indo-thai-bhai-bhai-indians-now-visiting-thailand-chinese-tourists-shun-land-smiles/1636338/ | Thailand’s struggling tourism industry is finding support with visitors from the population colossus to its west, just as the years of bumper arrivals from the giant to its north are beginning to wane. At a beachfront hotel on the tropical island of Phuket, the occupancy rate from Chinese clientele has stalled, while bookings from India have begun to rise. The Vijitt Resort is one of many in Thailand that has more cause for optimism.
“We’re starting to see new growth,” said Kongsak Khoopongsakorn, Vijitt’s general manager and vice president of the Thai Hotels Association. “Indians are now driving industry growth like the Chinese had previously done.”
What’s happening to Thai tourism could prove a canary in the coal mine for the leisure sector in other Asian economies as China matures and a new India emerges. The Thai industry had been expanding at about 10% a year on escalating inbound Chinese arrivals, but a 2018 boat accident in Phuket that killed dozens of mainlanders and a slowing economy at home have triggered a drop in numbers.
In contrast, Indian arrivals accelerated in recent months due to more direct flights, a visa waiver and, most importantly, increasing wealth.
The rapid expansion of the middle class among India’s 1.3 billion people has prompted Thai authorities to upgrade their estimates of Indian visitors. At least 10 million are now expected to arrive in 2028, a more than five-fold increase on 2018 visits. That sort of growth trajectory would mimic the rise of Chinese tourists, who jumped from 800,000 in 2008 to more than 10 million last year.
Although China will remain an important market, it is likely to offer less growth potential in the years ahead. India, meanwhile, is set to become the new expansion story in Thai tourism, an industry that accounts for about 20% of gross domestic product.
Chinese visitors currently make up 28% of total foreign arrivals, well ahead of Indians at 4%. But within a decade, Indian arrivals are forecast to surge to about 15% of the total, while Chinese are predicted to edge up to about 30%.
“The Indian inbound market could potentially rival that of China,” said Pisit Puapan, executive director of the Finance Ministry’s Macroeconomic Policy Bureau. Pisit said high growth from India has also helped offset a decline from markets like Europe.
Thailand received about 180,000 Indian tourists in June, a record, the Tourism Ministry reported last week. It also said Indians spend 11% more per trip than average foreign visitors.
Chinese arrivals could actually fall this year from 2018 as the yuan has weakened against the baht, according to Bloomberg Intelligence. That might deter more cost-conscious Chinese tourists, or see them spend less if they do make the trip.
A cooling tourism market and dividend repatriation combined to help produce Thailand’s first current account deficit since 2014. The country’s forecast economic growth has already been revised down to the lowest level in four years as exports also fizzled.
Frequent Flyer
There are more direct flights between Indian and Thai cities, one reason for the jump in visitors to Bangkok, Phuket and surrounding areas. They are drawn by Thailand’s food and shopping, and its beaches are emerging as significant attractions.
India’s fifth-largest airline GoAirlines India Pvt currently connects three Indian cities to Phuket, and plans to add seven more. InterGlobe Aviation Ltd’s IndiGo launched services to the tropical island late last year.
Thai AirAsia Co Ltd, the kingdom’s largest low-cost carrier, recorded 20% growth in passengers traveling between India and Thailand in the first quarter of 2019 from a year earlier. It now operates 47 flights a week from Bangkok to nine Indian cities, and said it plans to add an additional destination.
With India projected to overtake China as the world’s most populous nation in eight years, and its middle class forecast to keep expanding, Thai Hotels Association’s Kongsak is cautious but hopeful about the future.
“We expect the industry will continue to grow,” he said. “But it’s important to spread the risk and have a good nationality mix in the market. We can’t rely on any single market.” | at least 10 million are now expected to arrive in 2028, a more than five-fold increase on 2018 visits. india is set to become the new expansion story in Thai tourism, an industry that accounts for about 20% of gross domestic product. the rapid expansion of the middle class among india's 1.3 billion people has prompted Thai authorities to upgrade their estimates of Indian visitors. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/india-aims-top-50-rank-next-year-in-ease-of-doing-business-pm-narendra-modi/articleshow/67586334.cms | Gandhinagar: Prime Minister Narendra Modi on Friday said that the implementation of GST and other measures of simplification of taxes have reduced transaction costs and made processes efficient.Delivering his inaugural address to the ninth edition of biennial Vibrant Gujarat Global Investors Summit , which went underway at Mahatma Mandir in Gandhinagar, Modi maintained that "India is now ready for business as never before.”“In the last 4 years, we have jumped 65 places in the Global Ranking of World Bank ’s Doing Business Report,” he pointed out adding that “but we are still not satisfied. I have asked my team to work harder so that India is in the top 50 next year.”The Prime Minister claimed that doing business in India has become cheaper and faster through GST and other tax reforms as well as through digital processes and single point interfaces.“From the start of business to its operation and closure, we have paid attention in building new institutions, processes and procedures,” he said adding that “all this is important, not just for doing business but also for ease of life of our people”.“At 7.3%, the average GDP growth over the entire term of our Government, has been the highest for any Indian Government since 1991,” Modi said. “At the same time, the average rate of inflation at 4.6% is the lowest for any Indian Government since 1991,” he added. “We have worked hard to promote manufacturing to create jobs for our youth. Investments through our 'Make in India' initiative, have been well supported by programmes like ‘ Digital India ’ and ‘Skill India’,” he added further.Dealing upon the challenges facing India, Modi said that In India the challenge is to grow horizontally & vertically. “Horizontally we have to spread benefits of development to regions & communities that have lagged behind,” he said. “Vertically we have to meet enhanced expectations in terms of quality of life & quality of infrastructure,” he added.Speaking earlier, Mukesh Ambani, Chairman & Managing Director, Reliance Industries Limited lauded the prime minister as a “Man of Action.” Remembering Mahtama Gandhi on the year of his 150th birth anniversary, Ambani said that while Gandhiji led India’s movement against political colonisation.”Today, we have to collectively launch a new movement against data colonisation.”“In this new world, data is the new oil. And data is the new wealth”, he said adding that India’s data must be controlled and owned by Indian people - and not by corporates, especially global corporations.“For India to succeed in this data-driven revolution, we will have to migrate the control and ownership of Indian data back to India - in other words, Indian wealth back to every Indian.” he added further and urged the Prime Minister to make this “one of the principal goals” of his Digital India mission. | Prime minister says that the implementation of GST has reduced transaction costs and made processes efficient. he said that in the last 4 years, we have jumped 65 places in the global ranking of the world bank’s doing business report. he said that doing business in India has become cheaper and faster through GST and other tax reforms. he said that the average GDP growth over the entire term of our Government, has been the highest for any Indian Government since 1991. | Positive |
https://www.financialexpress.com/auto/car-news/hyundai-india-rolls-out-200-cars-on-first-day-of-production-restart-creta-grand-i10-nios/1953978/ | Hyundai Motor India also said it had resumed operations with 255 dealer showrooms and workshops across India as per norms.
Hyundai Motor India has rolled out 200 cars on the first day of production restart at its Sriperumbudur plant near Chennai. The company commenced production operations on May 8, ensuring 100 % social distancing compliance in accordance with standard operating procedures as laid down by both the central and state governments. Hyundai is adhering to all the guidelines set by the state and central governments and also practicing 360-degree safety —care at workplace & care at all times on the factory premises. In line with the government’s objectives of reviving the economy and Hyundai’s global vision of progress for humanity, the commencement of manufacturing operations is aimed at boosting economic activities and striving to bring back normalcy, said a press release here on Saturday.
The company also said it had resumed operations with 255 dealer showrooms and workshops across India as per norms. In the last two days the company has received over 4,000 customer enquiries, 500 bookings and has done a retail sale of 170 cars. Hit hard by nil sale in April on the domestic front, Hyundai India announced five unique customer centric-car finance schemes to create convenience in challenging and uncertain times. The five schemes are — three-month low EMI scheme, step-up scheme, balloon scheme, longest-duration scheme and low-down payment scheme.
The company also announced `Hyundai EMI Assurance’ programme to enhance convenience and raise positive customer sentiments. To ease the buying process, while keeping the fear of employment uncertainty at bay, a unique and industry-first customer programme, the ‘Hyundai EMI Assurance’, has been introduced for select new customers covering up to three car loan EMIs. | Hyundai Motor India has rolled out 200 cars on the first day of production restart at its Sriperumbudur plant near Chennai. the company commenced production operations on may 8, ensuring 100 % social distancing compliance. the company also said it had resumed operations with 255 dealer showrooms and workshops across india as per norms. in the last two days the company has received over 4,000 customer enquiries, 500 bookings and has done a retail sale of 170 cars. | Positive |
https://www.financialexpress.com/lifestyle/health/nipah-lessons-helped-there-is-no-one-stroke-flattening-of-the-curve-kerala-health-minister/1941459/ | Kerala’s handling of the Covid-19 outbreak is wining it praise across the board. But the true test of its mettle will be how it handles the lifting of the lockdown. FE’s M Sarita Varma spoke with KK Shailaja, minister for health, social justice and woman and child development of Kerala, on the state’s Covid-19 response and what lies ahead. Excerpts:
You had donned the virus-tamer mantle earlier, during the Nipah outbreak. Has this head start helped?
We were the first to set up a Covid-19 control room, as early as on January 24. This is partly because of Kerala’s learning from its brush with the deadly Nipah virus outbreak. We had evolved our virus protocol, with the WHO’s hand-holding. Anticipating Nipah again, we had been on guard, with mock drills. The coronavirus deaths in Wuhan in China put us on alert about the homecoming of Kerala medical students in Wuhan. So we kept rapid response teams ready. When three students from Wuhan turned positive, we were able to manage them, without more contact infections. We did not withdraw the airport health squads.
So far, we have tested more than 21,000 samples; 458 were infected. Of them, 333 have been discharged. There have been only three deaths (the Union ministry of health and family welfare lists four). This was not by chance. It was with humongous effort that we were able to keep the Covid-19 mortality rate as low as 0.5%. From over 1.5 lakh people under observation, through relentless testing, the watch list has slimmed to 21,215 people last week.
How handy was the state’s legacy of high health indices?
Currently, Kerala has a robust mix of public and private hospitals. And the state’s public health model, well-honed by the recent Nipah crisis, rose to the challenge. The game changer was a culture of grassroots democracy, with proactive village councils. Even students in the state chipped in, building a 2.5-lakh pool of volunteers. We set up walk-in kiosks for taking samples. Besides the centrally-procured RT PCR testing kits, Kerala was the first state to buy rapid test kits from Pune-based Mylab.
Kerala expats returning would mean a more complex round of surveillance, quarantine and hospitalisation. How prepared is the state to meet this situation?
The evacuation priority would be given to pregnant women, visiting visa holders stranded abroad and old people without Covid-19 infections. They will have to undergo 28-day quarantine, some at home, and some at the arranged camps.
In addition, we have readied about 1.6 lakh beds in anticipation as part of plan A. In plan B, we have identified beds from private hospitals. And in plan C, we may also rope in public halls and houseboats. The state is mulling reverse quarantine plans for senior citizens and is revving up its food security. Meanwhile, we are also alert to the asymptomatic spread of Covid-19, which we had avoided so far.
Kerala had been an early bird in pandemic-fighting, as the first in India to zero-in on Covid-19 cases. And you had donned the virus-tamer mantle earlier, during the Nipah outbreak. Has this head start helped?
Preparedness gave a head start. We were the first to set up a Covid-19 control room, as early as on January 24. This is partly because of Kerala’s learning from its brush with the deadly Nipah virus outbreak, two years ago. We had evolved our virus protocol, with the WHO’s hand-holding. Anticipating Nipah again, we had been on guard, with mock drills. The coronavirus deaths in Wuhan in China put us on alert about the homecoming of Kerala medical students in Wuhan. So we kept rapid response teams ready. When three students from Wuhan turned positive, we were able to manage them, without more contact infections. We did not withdraw the airport health squads.
In the second round, we had one case of a Keralite family from Italy, which failed to reveal infection history at the airport.
So far, we have tested more than 21,000 samples; 458 were infected. Of them, 333 have been discharged. There have been only three deaths (the Union Ministry of Health and Family Welfare lists four). This was not by chance. It was with humongous effort that we were able to keep the Covid-19 mortality rate as low as 0.5%. From over 1.5 lakh people under observation, through relentless testing, the watch list has slimmed to 21,215 people last week.
There is this ‘Kerala human development model’. It showcases a little Indian province that enjoys tall health indices, on a par with those of Canada, but disproportionate with its relatively modest GDP. Was this legacy handy?
Currently, Kerala has a robust mix of public and private hospitals. And the state’s public health model, well-honed by the recent Nipah crisis, rose to the challenge. The game changer was a culture of grassroots democracy, with proactive village councils. High literacy levels, too, helped in rigorous contact tracing and mass quarantine. Even students chipped in, building a 2.5-lakh pool of volunteers.
We set up walk-in kiosks for taking samples, picking a leaf from South Korea. Besides the centrally-procured real-time polymerase chain reaction (PCR) testing kits, Kerala was the first state to buy rapid test kits from Pune-based Mylab.
The state’s Covid-19 mortality rate is amongst the lowest in India. Kerala is also the first to get the ICMR nod to test plasma therapy. What were the challenges you faced?
Early referrals and well-oiled teamwork helped in minimising morbidities. It was hard work. One of the most gratifying moments was when we discharged two senior citizens—a 93-year-old man and his 88-year-old wife—after treatment. As a tourist state, we also undertook treatment of several foreign tourists, from Germany, the UK and Italy. A British citizen, who was in severe respiratory difficulties, before going back said that he could probably not have gotten better care in his home country. One situation that had kept us worried was a 62-year-old woman asymptomatic patient in isolation ward, who stayed Covid-19 positive for as long as 45 days. Even medical journals like Lancet haven’t come across such cases.
We had only one Covid-19 testing lab initially. Currently, the ICMR has mandated 14 local labs to do the testing. From 1,500 samples per day, we will soon be able to test 3,000 per day. As far as plasma therapy is concerned, it is too early to talk of results.
There are allegations that the Kerala government breached the privacy of people in quarantine by signing up a US-based firm to handle their data. How do you see this?
We made an agreement to ensure data privacy. Political allegations often crop up. It doesn’t affect our pandemic management. Even when the Centre extended the lockdown, the Kerala government made some relaxations. At the behest of the Union Ministry of Home Affairs, the relaxations were later rolled back. Does this mean the state is not in sync with the Centre’s anti-pandemic curbs?
Indeed, there is no conflict with the Centre on anti-pandemic curbs. On the contrary, we are going fully in tandem with the social distancing plan. Kerala put in place a strict lockdown before the national one. Gatherings, even prayer meets, are banned. Kerala’s quarantine has been longer than the nationally prescribed one.
We matched it with welfare outreach. Supplies are home delivered, midday meals are sent to students at home, even when schools are shut, and mental health helplines are set up. In fact, 1,255 community kitchens were set up for migrant labourers from other states.
After the first phase of national lockdown, chief minister Pinarayi Vijayan pointed out that we need to consider not just lives, but livelihoods, too. Economy needs to be rekindled. That’s why we considered relaxations in zones free of Covid-19 cases.
We have now abandoned the green zone concept, since the infiltration of infected cases from neighbouring states changed the picture. We will also go by the central directive to keep the state borders closed.
Kerala has over 20 lakh expats. Their homecoming would mean a more complex round of surveillance, quarantine and hospitalisation. How prepared is the state to meet this situation?
We are keen to have the expats back as soon as the Centre allows flight services. The evacuation priority would be given to pregnant women, visiting visa holders stranded abroad and old people without Covid-19 infections. They will have to undergo 28-day quarantine, some at home, and some at the arranged camps.
We have readied about 1.6 lakh beds in anticipation as part of plan A. In plan B, we have identified beds from private hospitals. In plan C, we may also rope in public halls and houseboats. The state is mulling reverse quarantine plans for senior citizens and is revving up its food security. Meanwhile, we are also alert to the asymptomatic spread of Covid-19, which we had avoided so far. A good many of the infected seem asymptomatic.
Covid-19 is a new virus, whose behaviour is yet to be unravelled. Mutations cannot be ruled out. It is no one-stroke flattening of the curve. As of now, we need to review the dynamics of this highly contagious virus, every single day. The pandemic is not over yet. We need to think of livelihoods, but cannot leave human lives to luck. This is not yet the hour to rest our oars. | FE's KK Shailaja says the state's response to the covid-19 outbreak is wining praise across the board. but the true test of its mettle will be how it handles the lifting of the lockdown. the state has tested more than 21,000 samples; 458 were infected. the state's public health model, well-honed by the recent Nipah crisis, rose to the challenge. | Positive |
https://www.financialexpress.com/industry/sme/14-lakh-jobs-in-offing-as-gig-economy-to-lead-blue-collar-job-creation-in-12-months-highest-in-logistics-says-report/1515957/ | Amid the government’s claim around the advantage India has of demographic dividend on one hand and the rising debate of India’s alleged unemployment crisis on the other, at least India’s blue collar workforce can look forward to a better year ahead. The country is expected to generate 21 lakh new blue collar jobs in the coming 12 months even as more than 8 lakh jobs are likely to come up in the logistics sector, said a report by BetterPlace — technology platform that manages the lifecycle of blue-collar employees of various businesses.
Moreover, out of the 21 lakh job opportunities forecasted for coming 12 months, 14 lakh are expected to come up in the gig economy.
“The report indicates that there is migration beginning to happen from traditional blue-collar jobs such as IFM, security etc., to gig-based jobs as a result of increased flexibility, higher salaries with attractive incentive structures and higher take home due to minimal deductions,” BetterPlace said in a statement.
In addition to logistics, around 6 lakh jobs are hoped to be generated in on-demand or similar businesses that are driver-linked. Further, around 3.5 lakh vacancies are expected to be created in for security guards.
“The data for this report, which has been collected from over 11 lakh profiles over the past year points to migration trends – where are they coming from? Where are they going for seeking jobs and how salaries have been steadily increasing,” said Pravin Agarwala, Co-founder CEO, BetterPlace.
Maharashtra is likely to take the lead in job generation with more than 4 lakh jobs followed by Karnataka with over 3 lakh jobs in the blue collar vertical.
Here are some other interesting findings from the report:
Southern states — Karnataka, Tamil Nadu, Andhra, Kerala, Telangana — will generate 40 per cent of the blue collar jobs in India.
Among tier I cities, Bengaluru is the largest job creator with close to 2.35 lakh jobs closely followed by Delhi at 2.25 lakh jobs approximately. Kolkata scores the lowest with close to 24,000 blue collar jobs but growing well year-on-year.
Hyderabad and Chennai fast emerging as jobs centres with 54,052 and 93,222 blue collar jobs respectively. | out of 21 lakh job opportunities forecast for coming 12 months, 14 lakh are expected to come up in the gig economy. around 6 lakh jobs are hoped to be generated in on-demand or similar businesses that are driver-linked. around 3.5 lakh vacancies are expected to be created in for security guards. tier I cities Bengaluru is the largest job creator with close to 2.35 lakh jobs closely followed by Delhi at 2.25 lakh jobs approximately. | Positive |
https://www.financialexpress.com/market/reliance-industries-rights-issue-mukesh-ambani-capital-raising-plans-to-cut-debt/1941953/ | Mukesh Ambani’s Reliance Industries Ltd’s capital raising plan could see the oil-to-telecom conglomerate fetch up to Rs 50,000 crore from the proposed rights issue. India’s most valuable listed company, with a market capitalization of Rs 9.25 lakh crore, will consider a rights issue of equity shares in its board meeting scheduled for 30 April 2020. The move could help Reliance Industries Ltd (RIL) march towards realizing Ambani’s goal of making the company a zero-net-debt firm by March next year. Currently, RIL has a gross debt of over Rs 3 lakh crore and a net debt of Rs 1.5 lakh crore.
The move to raise capital during this time reflects the unflinching faith of promoters in the medium to long term prospects of various businesses, said Ajay Bodke, CEO, PMS Prabhudas Lilladher. “They are trying to reduce debt and raise equity when everyone is in a pessimistic mood. They are raising equity after so many years so it should be received well,” Sanjiv Bhasin told Financial Express Online. RIL will be a technology play in the long run, leaving its energy tag behind, he said, adding that he remains confident of the RIL-Saudi Aramco deal going through. Further, when asked about what could be the size of RIL’s proposed rights issue, Sanjiv Bhasin said: “They have a net debt 1.5 lakh crore and Rs 3 lakh crore is on the book. Maybe something in the range of Rs 50,000 crore could be in the offing.”
RIL, which is one of the most cash-rich companies in India with Rs 1.3 lakh crore cash in hand, is also one of the highest indebted firms. Charting its path towards the zero-net-debt goal, RIL last week announced a 10% stake sale in its telecommunications arm to Mark Zuckerberg’s Facebook for a whopping Rs 43,574 crore. However, RIL’s rights issue plan could help the firm become a zero-net-debt company by March next year, while the Facebook-Jio deal goes underway, and the Saudi Aramco deal waits for the light of the day.
“There are apprehensions that the Facebook investment may take time to fructify. The debt reduction plan could face delay, so to overcome that they (RIL) are probably thinking that they should come up with a rights issue probably of anything between $3-4 billion (up to Rs 30,000 crore),” Deepak Jasani, Head – Retail Research, told Financial Express Online. This would mean RIL issuing around 5 shares for every 100 held, under the rights issue. Among the other things that could delay RIL’s debt reduction plan, according to Deepak Jasani, include the slump in crude oil prices that have dented the oil and petrochemical business, Saudi Aramco deal probably getting reworked and equity markets underperforming for the coming quarters.
According to calculations done by Morgan Stanley on RIL’s rights issue, the global brokerage and research firm estimates the issue value to be $13.8 billion if new shares are issued to the tune of 12% of total equity and at a 5% discount to the current market price. The brokerage expects RIL to amass $2.3 billion if new shares issued are 2% of the total equity, at a 5% discount to the current market price. | oil-to-telecom conglomerate could fetch up to Rs 50,000 crore from rights issue. the move could help the firm achieve its zero-net-debt goal by march. currently, RIL has a gross debt of over Rs 3 lakh crore and a net debt of Rs 1.5 lakh crore. the firm has a 10% stake sale in its telecommunications arm to facebook for a whopping Rs 43,574 crore. | Positive |
https://www.financialexpress.com/lifestyle/valentines-day-2020-indias-little-england-hosur-a-paradise-gift-taj-mahal-kohinoor-paneer-roses/1864021/ | By Asha Balakrishnan
Valentine’s Day 2020: Stop and smell the roses – I literally follow this age old good advice when I travel to Hosur via Bangalore or Salem. Every time I travel this route, I stopped by the many rose farms and poly houses, to soak in the beauty of every whorl and colour of the beautiful roses. The gardeners and farmers are very warm and welcoming. Each time I stop by, we share conversations, they invite us home for lunch or offer a glass of buttermilk. They are also very generous to give me bonus in the form of a rose plant, tomatoes, chayote, Brinjals or whatever they grow.
Hosur is a little historical, industrial and agricultural town in the state of Tamil Nadu. A very humble town which is not proud of its various honours, perhaps the reason it is not so popular. All around the town if you observe, you will find historical and archaeological evidence that pre-dates this town to 2000 years. During Sangam-age it was called ‘Muraasu nadu’ and ruled by King Adiyamaan, the King who gave gooseberry to Tamil poetess Avaiyaar to prolong her life. The Cholas, Rajputs, Nayaks, Hoysalas, British East India during Lord Cornwallis time, Tipu Sultan and many more have ruled this place.
This town is home to many small scale and large scale industries producing automobile bodies, automotive spares, high precision aero parts, watches, bio-tech, agriculture, tissue culture, pharmaceuticals and many more. A place which cannot be classified as a ‘laid back’ town or a ‘hyper-active’ town, It takes a middle path. From what I have observed generally, people here have the approach of ‘Work while you work, play while you play’. Maybe because the majority of them have jobs with 9-5 schedules in Industries unlike many MNCs which work across different time zones.
One of its prime revenue generators is through its horticulture and floriculture exports. Hosur soil is said to be very fertile and ideal to grow European vegetables like broccoli, carrots, beets, bell peppers, asparagus etc. This is possible not only because of the fertile soil but also because this place is elevated 3000ft above sea level and thus enjoys a compatible and salubrious climate, all round the year. The weather is the reason why the Britishers called this place as “India’s Little England” during their rule. Tons of vegetables are exported to other parts of the country and this town also houses prime floriculture companies.
Many agri-export companies based here have their project sites around the main town like Denkanikottai, Bagalur, Thally etc. They breed, cultivate and export flowers like carnations, lilies, gerbera and the world famous valentine red rose called ‘Taj Mahal’. This variety created by a rose breeder in Holland is patented and cultivated in Hosur. It is a deep red budded rose with long stalk and big leaves.
Another rose by name ‘Kohinoor’ which is a baby orange-pink rose is also cultivated here. The main markets for these flowers are Europe, Australia, The Middle East and Japan. The valentine rose was patented in 2009 and the exports have been doubled, tripled and some years they dip too.
Talking to a rose grower, in Bagalur (near Hosur), who was growing the Damask rose popularly called ‘Paneer rose’, said he also grows cassandra, chrysanthemum, marigold, tuberose for domestic and international markets. The flowers he grows are auctioned in the famous Hosur flower markets to retailers where they reach homes for daily pooja or special occasions like weddings.
But with the passage of time, flowers have gone beyond decorating gods, sacred spaces and many other places. They now decorate office establishments, living rooms, as gifts etc. He said growing flowers now is a highly competitive industry. With the introduction of new techniques, cultivators now grow and develop new flowers which leads to change in the trend of consumers.
The new generation employ modern technology, maximise the production and offer better quality of flowers and thereby, a better price. He said the developed cut flowers like the valentine roses are grown in poly houses under controlled conditions. The buds are covered with netted bud caps so their shape remains in bud form. Their petals are also thick so that they can withstand long distance travels. The flowers grown here travel in refrigerated vans to Bangalore and then airlifted to various countries like Amsterdam, Germany, Abu Dhabi, Singapore, Australia etc. Recently, an Intellectual property attorney has also applied for GI tag for the “Hosur roses”.
As I type this looking at the rose plant in my balcony garden; the subtle fragrance, its rich colour and artistry of whorls reminds of Emperor Jahangir’s quote “No other scent of equal excellence…It lifts the spirit and refreshes the soul”.
So the next time you happen to pass this route, do stop by to smell the roses – a soothing balm for city souls. If lucky, you could also relish the refreshing buttermilk, enjoy a lively conversation and also carry home a lovely rose plant to adorn your garden along with some fragrant memories.
(Asha Balakrishnan is a storyteller by passion, with varied interests such as blogging, organic gardening, reading, art and craft, yoga and traveling. Views expressed are personal.) | Hosur is a small historical, industrial and agricultural town in the state of Tamil Nadu. it is home to many small scale and large scale industries producing automobile bodies, automotive spares, high precision aero parts, watches, bio-tech, agriculture, tissue culture, pharmaceuticals and many more. the soil is said to be very fertile and ideal to grow European vegetables like broccoli, carrots, beets, beets, bell peppers, asparagus etc. | Positive |
https://www.moneycontrol.com/news/technology/reliance-jio-facebook-deal-a-look-at-how-jio-is-increasing-audience-reach-in-india-5174911.html | live bse live
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Facebook will invest Rs Rs 43,574 crore in Jio Platforms, and the two companies announced the signing of a binding agreement on the morning of April 22.
Jio Platforms, a wholly-owned subsidiary of Reliance Industries Limited, brings together Jio’s leading digital apps, digital ecosystems and India’s high-speed connectivity platform under one umbrella.
Reliance Jio Infocomm Limited, which provides connectivity platforms to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.
As one of the largest countries in the world, India is home to some of Facebook’s most thriving communities on WhatsApp, Facebook and Instagram.
According to data by Statista, India is the leading country globally in terms of user base for Facebook. There are as many as 260 million Indians that use Facebook as of January, making it the leading country in terms of Facebook audience size.
The US follows India at distant second position as the country has 180 million Facebook users.
Plus, Facebook-owned instant messaging app, WhatsApp, too has a strong user base in India. Out of two billion users all over the world, the largest market for the platform in terms of users is India.
NITI Aayog CEO Amitabh Kant, at a press conference in 2019, revealed the user stats for Facebook, according to which WhatsApp in India had over 400 million users, making India its biggest market.
In the last five years, more than 560 million people in India have gained access to the internet.
The Facebook-Jio deal will enable new opportunities for businesses of all sizes in India.
Amid all businesses the focus will be especially on India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector.
Plus, the partnership between the two digital giants assumes special significance for India in the current situation when not just the country but businesses across the globe have been impacted due to the coronavirus outbreak.
Digitalisation has become more important than ever and Indians have realized it after the disruptions caused by the pandemic.
In the post-COVID-19 era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd
Catch our entire coverage on the Facebook-Jio deal here. | the two companies announced the signing of a binding agreement on the morning of April 22. Jio Platforms is a wholly-owned subsidiary of Reliance Industries Limited. it brings together Jio’s leading digital apps, digital ecosystems and India’s high-speed connectivity platform under one umbrella. 260 million Indians use facebook as of January, making it the leading country in terms of Facebook audience size. | Positive |
https://www.livemint.com/Politics/oic24abAlxRDF6A1gp9QKK/As-companies-embrace-AI-its-a-jobseekers-market.html | San Francisco: Dozens of employers looking to hire the next generation of tech employees descended on the University of California, Berkeley in September to meet students at an electrical engineering and computer science career fair.
Boris Yue, 20, was one of thousands of student attendees, threading his way among fellow job-seekers to meet recruiters.
But Yue wasn’t worried about so much potential competition. While the job outlook for those with computer skills is generally good, Yue is in an even more rarified category: he is studying artificial intelligence, working on technology that teaches machines to learn and think in ways that mimic human cognition.
His choice of specialty makes it unlikely he will have difficulty finding work. “There is no shortage of machine learning opportunities," he said.
He’s right.
Artificial intelligence is now being used in an ever-expanding array of products: cars that drive themselves; robots that identify and eradicate weeds; computers able to distinguish dangerous skin cancers from benign moles; and smart locks, thermostats, speakers and digital assistants that are bringing the technology into homes. At Georgia Tech, students interact with digital teaching assistants made possible by AI for an online course in machine learning.
The expanding applications for AI have also created a shortage of qualified workers in the field. Although schools across the country are adding classes, increasing enrollment and developing new programs to accommodate student demand, there are too few potential employees with training or experience in AI.
That has big consequences.
Too few AI-trained job-seekers has slowed hiring and impeded growth at some companies, recruiters and would-be employers told Reuters. It may also be delaying broader adoption of a technology that some economists say could spur US economic growth by boosting productivity, currently growing at only about half its pre-crisis pace.
Andrew Shinn, a chip design manager at Marvell Technology Group who was recruiting interns and new grads at UC Berkeley’s career fair, said his company has had trouble hiring for AI jobs.
“We have had difficulty filling jobs for a number of years," he said. “It does slow things down."
Coming of age
Many economists believe AI has the potential to change the economy’s basic trajectory in the same way that, say, electricity or the steam engine did.
“I do think artificial intelligence is … coming of age," said St. Louis Federal Reserve Bank President James Bullard in an interview. “This will diffuse through the whole economy and will change all of our lives."
But the speed of the transformation will depend in part on the availability of technical talent.
A shortage of trained workers “will definitely slow the rate of diffusion of the new technology and any productivity gains that accompany it," said Chad Syverson, a professor at the University of Chicago Booth School of Business.
US government data does not track job openings or hires in artificial intelligence specifically, but online job postings tracked by jobsites including Indeed, Ziprecruiter and Glassdoor show job openings for AI-related positions are surging. AI job postings as a percentage of overall job postings at Indeed nearly doubled in the past two years, according to data provided by the company. Searches on Indeed for AI jobs, meanwhile increased just 15%.
Universities are trying to keep up. Applicants to UC Berkeley’s doctoral programme in electrical engineering and computer science numbered 300 a decade ago, but by last year had surged to 2,700, with more than half of applicants interested in AI, according to professor Pieter Abbeel. In response, the school tripled its entering class to 30 in the fall of 2017.
At the University of Illinois, professor Mark Hasegawa-Johnson last year tripled the enrollment cap on the school’s intro AI course to 300. The extra 200 seats were filled in 24 hours, he said.
Carnegie Mellon University this fall began offering the nation’s first undergraduate degree in artificial intelligence. “We feel strongly that the demand is there," said Reid Simmons, who directs CMU’s new program. “And we are trying to supply the students to fill that demand."
Still, a fix for the supply-demand mismatch is probably five years out, says Andrew Chamberlain, chief economist at Glassdoor. The company has algorithms that trawl job postings on company websites, and their data show AI-related job postings having doubled in the last 11 months. “The supply of people moving into this field is way below demand," he said.
A job seeker’s market
The demand has driven up wages. Glassdoor estimates that average salaries for AI-related jobs advertised on company career sites rose 11% between October 2017 and September 2018 to $123,069 annually.
Michael Solomon, whose New York-based 10X Management rents out technologists to companies for specific projects, says his top AI engineers now command as much as $1000 an hour, more than triple the pay just five years ago, making them one of the company’s two highest paid categories, along with blockchain experts.
Liz Holm, a materials science and engineering professor at Carnegie Melon, saw the increased demand first-hand in May, when one of her graduating PhD students, who used machine learning methods for her research, was overwhelmed with job offers, none of which were in materials science and all of them AI-related. Eventually the student took a job with Proctor & Gamble, where she uses AI to figure out where to put items on store shelves around the globe. “Companies are really hungry for these folks right now," Holm said.
Mark Maybury, an artificial intelligence expert who was hired last year as Stanley Black and Decker’s first chief technology officer, agreed. The firm is embedding AI into the design and production of tools, he said, though he said details are not yet public.
“Have we been able to find the talent we need? Yes," he said. “Is it expensive? Yes."
The crunch is great news for job-seeking students with AI skills. In addition to bumping their pay and giving them more choice, they often get job offers well before they graduate.
Derek Brown, who studied artificial intelligence and cognitive science as an undergraduate at Carnegie Mellon, got a full-time post-graduation job offer from Salesforce at the start of his senior year last fall. He turned it down in favour of Facebook, where he started this past July.
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 | too few potential employees with training or experience in AI has slowed hiring. some economists say AI could spur US economic growth by boosting productivity. a growing number of companies are hiring for AI jobs. a growing number of companies are hiring for AI jobs. a growing number of companies are hiring for AI jobs. a growing number of companies are hiring for AI jobs. | Positive |
https://www.livemint.com/Industry/J6uQDEC9pqS7ZqQzfmmzuJ/UK-joins-International-Solar-Alliance-to-mark-Narendra-Modi.html | London: The United Kingdom on Monday joined the India-led International Solar Alliance (ISA) ahead of Prime Minister Narendra Modi’s four-day visit to Britain. At an event held at the London Stock Exchange as part of the Commonwealth Heads of Government Meeting 2018 (CHOGM), Britain formally announced its membership of the alliance, which aims to raise $1 trillion of private and public finance to provide affordable and sustainable energy for all by 2030.
The UK’s partnership will involve providing expertise and advice to the alliance, but no monetary contributions. The Department for International Development (DfID) said its partnership of ISA, which it described as Modi’s flagship climate treaty, is aimed at giving over 1 billion of the world’s poorest people access to cheap, clean, and renewable energy.
“Without India’s leadership, the alliance would not have come so far and so fast. By increasing access to solar energy, millions more babies will now be delivered safely, millions of farmers will be able to grow more crops and better support their families, and millions more children can be better educated," said UK international development secretary Penny Mordaunt.
“Partnering with like-minded countries and businesses who share the UK’s commitment to delivering clean, affordable energy will help end poverty while also delivering benefits for the UK by opening up business opportunities for UK renewable energy and green finance companies," she said.
The DfID minister championed the UK’s world-leading innovation and expertise—including from the City of London, the leading global centre for green investment finance—that will enable the alliance to deliver more effective programmes and help more of the world’s vulnerable people.
DfID highlighted that ISA has already brought together over 60 countries who have pledged to increase solar power that will ensure homes remain lit, children can be educated in schools, health facilities can provide life-saving treatment, and businesses have access to vital mobile and internet services.
“The signing of this treaty is a momentous occasion for the UK and demonstrates our continued commitment to providing the very best of British expertise to the renewable energy sector. With the UK joining the International Solar Alliance, the lives of almost a billion of the world’s poorest people, across the Commonwealth and beyond, will be changed for the better," Mordaunt said.
The UK said its support for ISA will be to develop solar water pumping projects, where farmers can use cheaper solar power—rather than diesel pumps—to water their crops. UK expertise will also help increase the number of “mini grids" supplying power to remote areas that cannot be reached by the main electricity grid.
These energy sources are considered a lifeline for rural communities, helping to power business and homes, making sure the poorest people no matter where they live can access clean, reliable and affordable energy quickly to lift themselves out of poverty.
The new collaboration means ISA will be able to make solar power cheaper by helping countries join forces to procure solar energy systems.
Currently, 12 ISA countries, including Commonwealth countries Bangladesh and Malawi, want to purchase over 720,000 solar pumps through ISA. The joint purchase will see a significant reduction in solar pump costs for each of the participating countries and up to 5 million people in developing countries will benefit from this collective purchase.
The UK becomes the 62nd country to join ISA, which includes countries like France, Australia, Bangladesh, Tuvalu, Benin, UAE, Brazil, Vanuatu, Burkina Faso, Sierra Leone, Tanzania and Uganda.
Britain’s traditional financial aid programme to India ended in 2015, with the country now focussed on providing India with “world-leading expertise" and private investment to boost prosperity, create jobs and open up markets.
The new ISA partnership is part of this wider engagement with India. ISA is an inter-governmental treaty-based organisation that aims to mobilise $1 trillion in funds for future solar generation, storage and technology across the world. It was launched by Modi in 2015 and formalised at a founding conference in New Delhi last month. PTI
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Topics | the united kingdom has joined the international solar alliance (ISA) the alliance aims to raise $1 trillion of private and public finance to provide affordable and sustainable energy for all by 2030. the partnership will involve providing expertise and advice to the alliance, but no monetary contributions. the uk's international development secretary said the alliance would not have come so far without India's leadership. | Positive |
https://www.businesstoday.in/sectors/banks/rbi-announces-liquidity-boost-of-rs-374-lakh-crore-amid-coronavirus-outbreak/story/399382.html | In a bid to maintain stability in the financial system in the wake of coronavirus pandemic, Reserve Bank of India (RBI) governor Shaktikanta Das on Friday said that Rs 3.74 lakh crore liquidity will be injected into system through various measures.
Shaktikanta Das said that the RBI has already injected liquidity of Rs 2.8 lakh crore in the financial markets through various instruments, which equal to 1.4 per cent of GDP. "Along with today's measures liquidity measures equal to 3.2 per cent of GDP. RBI will take continuous measures to ensure liquidity in the system," Das said while announcing the decisions taken by the Monetary Policy Committee (MPC).
As part of liquidity infusion measures, the central bank announced a massive 75 basis points cut in repo rates to revival economic growth which has been hit hard by the COVID-19 outbreak. The reverse repo rate has been slashed by 90 basis points to 4 per cent.
Besides, the cash reserve ratio (CRR) of all banks has been reduced by 100 basis points to 3 per cent from 4 per cent, with effect from the fortnight beginning 28 March for a period of 1 year. This is expected to release Rs 1.37 lakh crore liquidity in the market, the RBI chief said.
Also Read: Banks free to defer payment of EMIs by 3 months! RBI gives permission
CRR is the percentage of deposits that banks have to mandatorily keep with the central bank. The reduction in CRR has been announced after seven year. It was last reduced in February 2013 by 25 basis points.
The central bank will also conduct repo operation of up to Rs 1 lakh crore to infect liquidity into the market.
Das said these measures will result in total liquidity injection of Rs 3.74 lakh crore to the system. This has been done to allow banks to lend more to business rather than deposit it with RBI. These measures will enable the RBI to have better control on the liquidity situation in the system and mitigate the negative effect of COVID-19 on the economy.
Also Read: Shaktikanta Das Press Conference Live: RBI chief announces loan payment relief, Rs 3.7 lakh crore liquidity boost
He also assured the public that the banking system in India was safe.
Among others, the RBI announced that all banks, lending institutions may allow a three-month moratorium on all loans. Besides, banks lending institutions are allowed to defer interest on working capital repayments by three months. | RBI governor says liquidity measures equal to 3.2% of GDP. reverse repo rate cut by 90 basis points to 4%. RBI also announces three-month moratorium on all loans. meanwhile, banks may allow a three-month moratorium on all loans. RBI says it is a "very positive" decision. a spokesman for the RBI says the move is a "very positive" | Positive |
https://www.moneycontrol.com/news/business/markets/sp-500-tops-3000-points-on-hopes-of-economic-recovery-covid-19-vaccine-5318411.html | US stocks jumped and the S&P 500 breached 3,000 points on Tuesday as optimism about a potential coronavirus vaccine and a revival in business activity helped investors overlook simmering Sino-U.S. tensions.
The benchmark index traded above the key psychological level and also above its 200-day moving average, a closely watched long-term trend indicator, for the first time since March 5.
All 11 S&P sector indexes gained in early trading, with cyclical financials, industrials and energy stocks jumping more than 3 percent.
The S&P 500 has risen about 37 percent from its March lows on a raft of central bank and government stimulus, and is now just about 11 percent below its February record high.
On Monday, California decided to reopen in-store retail businesses and places of worship from one of the most restrictive shutdowns in the United States.
"People have been locked up and when they see sparkles of hope like vaccines, that drives optimism probably ahead of where it should be and clearly ahead of the economy," said Richard Steinberg, chief market strategist at Colony Group in Florida.
At 10:01 a.m. ET, the Dow Jones Industrial Average was up 575.66 points, or 2.35 percent, at 25,040.82, the S&P 500 was up 54.53 points, or 1.85 percent, at 3,009.98, and the Nasdaq Composite was up 126.77 points, or 1.36 percent, at 9,451.36.
U.S. biotech group Novavax Inc jumped 17.3 percent as it joined the race to test coronavirus vaccine candidates on humans and enrolled its first participants.
Merck & Co Inc added 1.5 percent as it announced plans to develop two separate vaccines.
But with U.S. unemployment soaring beyond 14 percent and macroeconomic data pointing at a deep recession, analysts warned financial markets could be betting on too fast a recovery.
"Business cycles don't simply end in two to three months - in a way that's what some of these sectors are pricing. It's going to be very slow," said Patrick Fruzzetti, managing director and senior research analyst at the Rosenau Group.
Beaten down travel-related stocks soared, with S&P 1500 airlines index up 10.3 percent and cruise operators including Carnival Corp more than 12 percent.
Advancing issues outnumbered decliners more than 9-to-1 on the NYSE and 5-to-1 on the Nasdaq.
The S&P index recorded 13 new 52-week highs and no new low, while the Nasdaq recorded 83 new highs and four new lows. | all 11 S&P sector indexes gain in early trading. cyclical financials, industrials and energy stocks jump more than 3 percent. a surge in business activity and a revival in business helps investors overlook tensions. the u.s. economy is a key driver of growth. a looming economic crisis could mean a slowdown in the recovery. | Positive |
https://www.businesstoday.in/current/economy-politics/npci-launches-subsidiary-to-venture-into-global-markets/story/413523.html | The National Payments Corporation of India (NPCI) on Wednesday announced the launch of a subsidiary for its international growth ambitions. The subsidiary, NPCI International Payments Ltd (NIPL), will facilitate the body's "ambition" of venturing into newer international markets and co-create payment systems with other nations, as per an official statement.
The announcement comes a day after the Reserve Bank of India (RBI) came out with guidelines for creation of other payment platforms with a view to de-risk the system. NIPL has been tasked with exporting NPCI's indigenously developed offerings and technological acumen to foreign markets and its focus will be internationalisation of the RuPay and UPI (unified payment interface) platform, an official statement said.
Also read: Banks expected to restructure loans up to Rs 8.4 lakh crore after RBI decision: IndRa
NPCI said its platforms have been cost effective, secure, convenient and instantaneous and several nations have displayed an inclination towards establishing a 'real-time payment system' or 'domestic card scheme'. "Several countries such as Asia, Africa and the Middle East have displayed interest towards replicating our model in their own nations," NPCI Managing Director and Chief Executive Officer Dilip Asbe said.
NPCI, which is owned by local lenders, has appointed Ritesh Shukla as the chief executive of NIPL, it said adding that he joins from rival Mastercard's Middle East and North Africa (MENA) team. He will be supported by Anubhav Sharma, head of international business for partnership, business development and marketing, and Rina Penkar, head of international business for product development, in NIPL's core team, as per the statement.
Also read: COVID-19 impact: Around 40% of restaurants may not reopen again | NPCI has launched a subsidiary for its international growth ambitions. the subsidiary, NPCI International Payments Ltd (NIPL), will facilitate the body's "ambition" of venturing into newer international markets. the announcement comes a day after the Reserve Bank of India (RBI) came out with guidelines for creation of other payment platforms. NPCI said its platforms have been cost effective, secure, convenient and instantaneous. | Positive |
https://economictimes.indiatimes.com/markets/forex/rupee-logs-1st-fall-in-three-days-falls-5-paise-to-68-68/articleshow/65342814.cms | Mumbai: Snapping its two-day rally, the rupee today ended lower by 5 paise at 68.68 against the US dollar on renewed buying interest for the American currency even as domestic equities remained in a triumphant mode.Escalating trade war and sanctions dominated headlines and continued to play a critical role in driving the forex market sentiment after the US imposed fresh tariffs on imported goods from China and sanctions against several other nations.The Indian currency had appreciated by a whopping 25 paise in the last two days.Tail-end dollar demand from banks and importers largely offset early steep gains from lower crude oil prices and a recovery in the Chinese yuan.The home currency touched a fresh one-week high of 68.45 in mid-morning deals before retreating.Emerging markets currencies also witnessed turmoil.The Chinese yuan was trading higher at 6.83 against the dollar after data showed China's consumer inflation index rose by 2.1 per cent in July.Meanwhile, equity benchmarks Sensex and Nifty ended at fresh life-time highs for yet another session today, powered by unabated buying by participants on stellar corporate earnings.On the energy front, crude prices regained some lost ground, paring some of their overnight steep losses, after the first round of US sanctions against Iran came into effect, although confidence in crude demand has been hit by the escalating China-US trade dispute.The Benchmark brent for September settlement is trading weak at USD 72.42 a barrel in early Asian session after having dropped by more than 3 per cent on Wednesday.Earlier, the rupee resumed with a gap-up at 68.48 from Wednesday's close of 68.63 at the Interbank Foreign Exchange (forex) market on steady dollar selling by exporters.It later hit a session high of 68.45 in mid-morning deals before eventually pulled back to a low of 68.71 before finally settling the day at 68.68, showing a modest loss of 5 paise, or 0.07 per cent.The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 68.6240 and for the euro at 79.6327.The bond markets, however rallied for the second day and the 10-year benchmark bond yield slipped to 7.75 per cent.Globally, the US dollar gained against most major currencies as investors bet that trade war rhetoric and a strong U.S. economy would continue to aid the currency.Trade tensions are seen as beneficial for the US dollar as the economy is better placed to handle protectionism than emerging markets, and tariffs may narrow the US trade deficit.Against a basket of other currencies, the dollar index is trading higher at 95.05.In the cross currency trade, the rupee fell back against the pound sterling to end at 88.53 per pound from 89.30 and the euro drifted against the euro to finish at 79.61 as compared to 79.58 yesterday.The Japanese yen also closed soft at 61.81 per 100 yens from 61.80 earlier.Elsewhere, the pound sterling is trading little changed against the US dollar after reports of EU preparing major Brexit concessions to the UK Prime Minister Theresa May, helping the currency to recover from a no-deal Brexit selloff ahead of Friday's Q2 GDP data.The euro remained under immense selling pressure against the greenback amid dovish ECB report on the economy stating that the potential US tariffs may put them at the highest level in 50 years against the grim back drop of ongoing US-China war tension.The Russia's ruble is tanking on the news of fresh US sanctions over Moscow's alleged poisoning of an ex-spy in Britain.In forward market today, premium for dollar declined owing to consistent receiving from exporters.The benchmark six-month forward premium payable in December moved down to 114-116 paise from 116-118 paise and the far-forward June 2019 contract edged down to 262-264 paise from 264.50-266.50 paise previously. | rupee ends day lower by 5 paise at 68.68 against the US dollar. rupee had appreciated by a whopping 25 paise in the last two days. crude prices regained some lost ground after first round of sanctions against Iran. equities benchmarks Sensex and Nifty end at fresh life-time highs for yet another session. | Positive |
https://www.businesstoday.in/bt-buzz/news/coronavirus-impact-how-indigo-is-turning-covid-crisis-into-an-opportunity/story/406081.html | "Every crisis also has a benefit," said Wolfgang Prock-Schauer, COO at the country's largest carrier IndiGo, at the recent quarterly earnings call. Struck by the coronavirus pandemic, IndiGo reported a bad set of numbers in the last quarter of FY20. For instance, the consolidated loss in the fourth quarter stood at Rs 871 crore and Rs 234 crore for the full FY21. Wolfgang's statement is not just a cliche that's used by every industry captain in these troubled times, there are enough pieces of evidence which suggest that IndiGo's management is indeed walking the talk. Over the past two months, the airline has taken a series of steps that will minimise the impact of the current pandemic-related issues.
To begin with, the airline has converted its 10 aircraft into freighters which resulted in higher throughput. How? IndiGo, and many other airlines, carry cargo in the belly of the plane, the average carrying capacity is between 6 and 9 tonnes. Compare that to these 10 all-cargo planes which can carry 17-20 tonnes per flight. As passenger revenues tanked during the lockdown, IndiGo and its rival ramped up their cargo operations due to high demand for transporting essential supplies. The sharp rise in the international cargo rates - from about $1,000 per tonne to $3,000 per tonne - during the lockdown has further improved the viability of cargo flights. Though it's not clear how much IndiGo benefitted from the high cargo rates.
Over the past 18 months, the no-frills carrier has been focussing a lot on cargo operations. For instance, in one year to December 2019, IndiGo's share in the domestic cargo market has risen from 27 per cent to 40 per cent.
But the recent bump in revenues has largely come from the international cargo flying. Since the lockdown, IndiGo has been flying to China, the Middle East and other countries carrying a decent amount of cargo. "I am also pleasantly surprised by this trend. I didn't expect it. A lot of it is driven by the international expansion. As international expanded, the cargo expanded faster than we had anticipated. Our management team in the cargo has turned out to be a high-performance team. It has been, during the shutdown, one of our few bright spots. Even when we come back to full operations, [we will be doing] all-cargo operations to international destinations," said Ronojoy Dutta, CEO, IndiGo at the recent investors' call.
Even though IndiGo has been flying planes since May 25, a large part of its fleet is still not utilised. These are primarily due to the ministry of civil aviation (MoCA) restricting the commercial flying capacity to 33 per cent for three months. IndiGo is flying even lower at around 20 per cent capacity because of state-specific restrictions on top of MoCA orders. With smart planning, IndiGo seems to have overcome the challenge of capacity restrictions. How?
IndiGo's fleet has a mix A320neos, A320ceos, A321neos and ATRs. The airline has been facing efficiency issues with A320ceos for the past few years. Though it added about 50 of them (from the secondary market) some years ago, and extended the leases for some of those in 2016, A320ceos are essentially old-generation aircraft that not only burn more fuel but also require higher maintenance cost. IndiGo usually fly planes for 5-6 years before returning them to lessors, but it had to extend A320ceo leases because of issues with A320neos.
But in a depressed market like today, no airline wants such planes in their fleet. With about 120 A320ceos in its fleet, IndiGo too wants to return them to lessors as quickly as possible, and at the same time, induct more A320neos which are more fuel-efficient, and have a low maintenance cost. However, there is a limit to which it can add them. Why?
So while IndiGo is a priority customer for aircraft maker Airbus, the backlog orders for A320neos are huge, and IndiGo can get as many planes. Also, IndiGo is already facing problems with A320neos in its fleet that are equipped with Pratt & Whitney (PW) engines.
But since the current restrictions and circumstances have suppressed the demand; it has given IndiGo a chance to keep its inefficient planes (A320ceos) grounded, and fly A320neos which are compliant with aviation regulator directorate of civil aviation (DGCA) rules. Had there been no flying restrictions, IndiGo would have been flying A320ceos as well (or even extended their leases) - to keep its market share intact - even if they would have burned a hole in the airline's pocket.
"We are keeping a sharp eye on the maintenance cost of A320ceos. We will fly them only if we have to, and try and avoid the engine shop visits. In terms of how quickly we return them, we will try and follow the schedule," said CEO Dutta.
The airline also got a reprieve recently from DGCA which has extended the deadline to replace the faulty PW engines in its A320neos by August 31. The earlier deadline was May end. Currently, IndiGo has about 106 PW-powered A320neos, out of which 40 needs engine replacements. Together with DGCA relief, the pandemic gives a buffer to IndiGo to manage its fleet better.
Going After Costs
That airlines have been badly affected by the pandemic is evident across their financials; it's a depressing trend when legacy carriers like Virgin Australia, Avianca, LATAM, and others are not able to withstand the shock and have filed for bankruptcies. Back home, all domestic carriers have got their financial performance hampered too. Some came too close to insolvency that the aviation ministry had to take a quick decision of resuming flights last month.
Before May 25, rating agency ICRA had estimated that domestic airlines were losing Rs 75-90 per day. But even as airlines fly with curtailed operations, passenger traffic at airports will remain under pressure for the first half of FY21. Though some recovery is likely in the second half. "On a full-year basis, passenger traffic is estimated to decline by 45-50 per cent in FY21," an ICRA note said.
As revenues have pummelled, airlines like IndiGo rushed to bring down their costs. Nearly 40 per cent of the airline's costs are fixed, and out of which, employees' costs and supplementary rentals are the biggest items. Let's look at the employees' costs where the low-cost carrier (LCC) has taken three big steps: salary cuts of 5 to 25 per cent across the organization (except for certain employees with lower pay grades), deferment of all merit-based salary increments, and leave without pay for three months starting May. Because of these decisions, IndiGo believes that it will save 25 per cent on the employees' expenses for the full year.
Then, the airline has gone into hard negotiations with its suppliers and lessors. Supplementary rentals, which accounts for 17 per cent costs, have been frozen for nine months since a large part of the fleet is grounded. In tight liquidity conditions, IndiGo reached out to its suppliers and asked for substantial cost reductions. "Many of them have, as a result of negotiations, agreed to that. We are continuing with negotiations to reduce our purchase costs by a substantial amount," said Dutta.
IndiGo expects that by introducing these measures and cutting back on discretionary spending, it could generate additional liquidity of Rs 3,000-4,000 crore around the end of FY21.
Opportunities in the post-COVID World
When the global and domestic restrictions on air travel are lowered, IndiGo expects that there are going to be new opportunities for domestic airlines. For instance, in the long term, there could be a shift from train travel to air travel which is considered a safer and faster mode of transport. Airlines like Southwest Airlines became successful because they could pull more people out of road travel. Would it happen to rail transport? Nobody knows but as IndiGo's Dutta pointed out, as the economy recovers, and the fear factor goes down, the train traffic substitution could be long-term growth potential for IndiGo.
The pandemic has also come as a blessing in disguise for the Indian carriers. How? India, being at a geographically advantageous position, has never been able to make itself a global hub for the international carrier. It was never used as a connecting hub between East and West, especially since the emergence of Dubai and Abu Dhabi in the past decade. Several efforts were being made by the government and aviation community to bring India into the forefront but they didn't go anywhere.
But there's a problem with these hubs which lends India a strong position in the post-COVID world. Many of these neighbouring hubs are large which makes them unsafe as transit points. The future of aviation would likely discourage large aviation hubs, and there will be more point-to-point air travel.
Domestic carriers like SpiceJet and IndiGo have been mulling over building a hub outside of India. While SpiceJet had announced plans last October to develop Ras al-Khaimah (in UAE) as its first international hub, IndiGo was reportedly looking at an eastern European destination.
With large global hubs like Dubai and Abu Dhabi losing prominence, Indian carriers have an opportunity to expand their international presence and draw traffic from some of these large hubs. | the country's largest carrier has taken a series of steps to minimise the impact of the current pandemic. the airline has converted its 10 aircraft into freighters which resulted in higher throughput. the sharp rise in the international cargo rates during the lockdown has further improved the viability of cargo flights. the airline has been flying to china, the middle east and other countries carrying a decent amount of cargo. | Positive |
https://www.livemint.com/companies/news/elon-musk-becomes-a-centibillionaire-jeff-bezos-wealth-tops-200-billion-11598493721948.html | Three of the world’s richest people have achieved staggering new levels of personal wealth.
The net worth of Amazon.com Inc. founder Jeff Bezos eclipsed $200 billion on Wednesday as shares of the e-commerce giant climbed to a record. The move simultaneously pushed his ex-wife MacKenzie Scott, 50, to the brink of becoming the world’s richest woman, just behind L’Oreal SA heiress Francoise Bettencourt Meyers.
Elon Musk, meanwhile, extended an extraordinary stretch of wealth gains to become a centibillionaire. Tesla Inc. shares rallied Wednesday, pushing his net worth to $101 billion, according to the Bloomberg Billionaires Index, a listing of the world’s 500 richest people.
Tech companies boosted the S&P 500 and Nasdaq Composite indexes to new highs for a fourth straight day, buoyed by news that the Federal Reserve is likely to keep short-term interest rates near zero for at least five years.
The gains by Bezos, 56, and Musk represent just the latest high water mark for wealth accumulation in a topsy-turvy year defined by both surging markets and catastrophic human and economic loss. The world’s 500 richest people have gained $809 billion so far this year, a 14% increase since January, even as a global pandemic caused a record drop in gross domestic product and millions of lost jobs.
The rising income inequality has provoked sharp responses from many progressive politicians and critics on the left. U.S. Senator Bernie Sanders earlier this month introduced legislation to tax ‘extreme’ wealth gains during the coronavirus crisis.
“We cannot continue to allow billionaires like Jeff Bezos and Elon Musk to become obscenely rich while millions of Americans face eviction, hunger and economic desperation," Sanders said Wednesday in a statement. “It’s time to fundamentally change our national priorities."
Others view their massive wealth as justified, saying they’ve earned it through the creation of singular businesses. “When you look at Musk and Bezos, it’s understated to say that in their own ways, they’ve changed the world," said Thomas Hayes, chairman of Great Hill Capital.
The surge in wealth is especially concentrated in the upper ranks of the billionaires index and has been fueled largely by tech stocks, which have been on a tear as the pandemic drives more people online. That also includes a rise in the number of retail investors buying stocks.
Musk, 49, now one of four centibillionaires in the world, has seen his fortune grow by $73.6 billion this year, a jump still smaller than Bezos’s, who is up by $87.1 billion. Facebook Inc.’s Mark Zuckerberg’s net worth topped $100 billion earlier this month. On Wednesday alone, it rose by $8.5 billion.
U.S. tech tycoons haven’t been the only beneficiaries. India’s Mukesh Ambani became the first Asian to rank among the world’s five richest last month. He’s gained $22.5 billion this year on the back of a boost in shares of his conglomerate Reliance Industries Ltd., whose tech division has attracted recent investments from the likes of Facebook and Silver Lake.
And despite growing tensions with the U.S., China’s tech billionaires have gained this year too. Tencent Holdings Ltd. Chief Executive Officer Pony Ma has amassed $16.6 billion this year and is now worth $55.2 billion. Alibaba Group Holding Ltd.’s Jack Ma and William Ding of NetEase Inc. have also added more than $12 billion each, putting their fortunes at $58.9 billion and $30.8 billion, respectively.
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This story has been published from a wire agency feed without modifications to the text. | the net worth of amazon.com founder Jeff bezos eclipsed $200 billion on. Wednesday as shares of the e-commerce giant climbed to a record. the move simultaneously pushed his ex-wife MacKenzie Scott, 50, to the brink of becoming the world’s richest woman. the surge in wealth is especially concentrated in the upper ranks of the billionaires. | Positive |
https://www.financialexpress.com/auto/car-news/force-motors-invests-rs-1000-crore-in-new-platform-for-shared-mobility/1832329/ | We dominate this market with a 68% share so the onus was on them to create a new segment that was aspirational and met international safety standards and raised the bar in passenger comfort, Firodia said.
Force Motors, the country’s largest van maker, unveiled its first next-generation shared mobility platform that has been simultaneously designed and developed for both internal combustion engines and 100% electric drive.
Force Motors has invested Rs 1,000 crore in this the project, code named T1N, Prasan Firodia, MD, Force Motors, said. “This is a completely new platform and we will launch the platform by end of the year and serve the shared mobility market,” Firodia said.
These investments were made through internal accruals, Firodia said.” We are a debt free company,” he added. This platform has been developed grounds-up and there is no carry over parts from the existing Traveller platform, Firodia said.
“Our aspiration is to get into the international markets with the platform,” Firodia said. The first phase will see entry into GCC, Africa, South Africa, Saarc, Asean (excluding China and Japan) and Eurasian markets, he said. It will compete with high premium products from Europe, Far East and USA with next gen features and made-in-India price, Firodia said.
We dominate this market with a 68% share so the onus was on them to create a new segment that was aspirational and met international safety standards and raised the bar in passenger comfort, Firodia said. This platform was targeted at premium, tour and travel as people now aspire for this kind of comfort, Firodia said.
This new platform is undergoing final validation and homologation processes. A new facility with body shop with robotic and laser welding facilities is being set up at the Pithampur works. These vehicles would be showcased at the forthcoming Delhi Auto Expo 2020.
A team of 150 have been working at the Akurdi R&D plant of Force Motors on it for the last four years to develop the platform. T1N is powered by a new BS-VI compliant, common rail diesel engine and also a BS-VI CNG variant. For the first time in this category, the company has come with an 100% electric version.
Force Motors has a 60% share of this segment both in revenue and volumes with its Traveller range of vehicles. The Traveller is 30 years old and is into its sixth generation of engines. The Traveller dominates the schools bus, ambulance, office transport, cargo, aggregators and lately intra city transport. There is growing demand from aggregators, fleet owners and city bus transport segment. | force motors unveiled its first next-generation shared mobility platform. it has been designed and developed for both internal combustion engines and 100% electric drive. the company has invested Rs 1,000 crore in this the project, code named T1N. it will compete with high premium products from Europe, Far East and USA. the vehicles would be showcased at the forthcoming Delhi Auto Expo 2020. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/gsk-sells-3-35-billion-stake-in-hindustan-unilever/articleshow/75598105.cms | GSK offloads over 5% stake in HUL via bulk deals Mumbai: GlaxoSmithKline(GSK) and Horlicks will sell up to $3.4 billion (Rs 26,090 crore) worth of Hindustan Unilever shares through what could be India’s biggest secondary market block trades on Thursday, with the British drugmaker looking to monetise about 5.7 per cent of HUL stock it had got after last year’s merger of GSK Consumer Healthcare and the country’s most valuable FMCG company.
HONG KONG/SINGAPORE: GlaxoSmithKline said on Thursday it sold its stake in Unilever's Indian business for $3.35 billion, which Refinitiv says is the largest block trade ever to have been carried out in India.The funds will help GSK in its goal of reinvigorating its drug development pipeline, having made costly bets on experimental cancer treatments and future cell and gene therapies amid sluggish revenue growth.The 5.7% stake in Hindustan Unilever was accepted by GSK as payment for the sale of its malted drink brand and other nutrition brands to Unilever, agreed in late 2018.The 133.77 million shares were offloaded on average for 1,905 rupees, according to a statement from GlaxoSmithKline.Potential investors were earlier told the shares would be sold in a range of 1,850 to 1,950 rupees, which was a 3%-8%discount to Wednesday's closing price of 2,010.20 rupees.In the statement, GSK said it would now receive net proceeds from the Horlicks divestment of 2.9 billion pounds ($3.59 billion), up from its original expectation of 2.4 billion pounds.It said the recent Hindustan Unilever share price gains led to the better than expected outcome.The deal, at $3.35 billion, eclipses the previous block trade record in India when Daiichi Sankyo sold its $3.18 billion stake in Sun Pharmaceuticals in April 2015, according to Refinitiv. On a global basis, the Glaxo block trade will be the 10th ever biggest, according to the data provider. The largest ever block trade remains Naspers selling $9.8 billion worth of Tencent stock in Hong Kong in March 2018.GSK's decision could also inject some momentum into India's equity capital markets which have struggled in line with other major financial markets as a result of the coronavirus pandemic.There has been $6 billion worth of equity capital market deals in India so far in 2020, down from $8.52 billion during the same time list year, according to Refinitiv.The data showed the rate of activity in 2020 is the slowest since 2017.In comparison, Hong Kong's equity capital markets have seen $12.8 billion worth of activity this year.GSK struck a deal in 2018 to fold its Indian business - whose main product is Horlicks - into Unilever's Indian unit Hindustan Unilever in exchange for shares in the combined group.According to GSK's first-quarter report, it completed the Horlicks deal on April 1, receiving the 5.7% equity stake in Hindustan Unilever plus about 400 million pounds in cash.Earlier this year, GSK launched a two-year programme to split into two entities, separating the core prescription drugs and vaccines business from an enlarged over-the-counter products business that was merged with a Pfizer unit.It is considering more divestments to fund the costs of the separation.Having sold travel vaccines to Bavarian Nordic for up to 955 million euros ($1.03 billion)in October last year, the British group is looking into shedding more assets, starting with a review of its prescription dermatology business with about 200-300 million pounds in annual sales. | british drugmaker sells 5.7% stake in hul for $3.35 billion. 133.77 million shares were offloaded on average for 1,905 rupees. 133.77 million shares were offloaded on average for 1,850 to 1,950 rupees. gSK said it would now receive net proceeds from the Horlicks divestment of 2.9 billion pounds ($3.59 billion) | Positive |
https://www.moneycontrol.com/news/business/markets/stocks-open-higher-on-wall-street-extending-global-gains-5283761.html | Stocks are opening higher on Wall Street, extending a global rally as the U.S. market bounces back from its worst week in two months. The S&P 500 rose 2.5% in the first few minutes of trading Monday.
Investors were encouraged to see that European countries were taking more steps to lift lockdowns put in place to contain the coronavirus outbreak. Over the weekend Federal Reserve Chair Jerome Powell expressed optimism that the U.S. economy could begin to recover in the second half of the year. Once the outbreak has been contained, he said, the economy should be able to rebound “substantially.”
Global stock markets and U.S. futures rebounded Monday from losses last week after the head of the U.S. Federal Reserve expressed optimism that the American economy might start to recover this year from the coronavirus pandemic.
London and Frankfurt pushed higher, while benchmarks in Shanghai, Tokyo, Hong Kong and Australia advanced.
That came despite Japan’s announcement that its economy contracted in the first quarter and the Trump administration’s decision to step up a technology conflict with Beijing by tightening restrictions on Chinese tech giant Huawei.
Investors appear to be looking past the outbreak to a recovery despite rising infection numbers in the United States, Brazil and some other countries. Forecasters warn the latest market buoyancy might be premature and a return to normal could be some way off.
Market sentiment “will likely remain fragile” as investors weigh government stimulus plans against rising U.S.-Chinese tension and poor economic data, said Riki Ogawa of Mizuho Bank in a report.
In Europe, the FTSE 100 in London gained 2.4% to 5,936 and the DAX in Frankfurt advanced 2.9% to 10,766. France's CAC 40 rose 2.2% to 4,373.
On Wall Street, futures for the S&P 500 index and the Dow industrials were up 1.6% and 1.7%, respectively. On Friday, U.S. stocks turned in their biggest weekly loss in nearly two months.
In Asia, the Shanghai Composite Index rose 0.2% to 2,875.42 and Tokyo’s Nikkei 225 gained 0.5% to 20,133.73. The Hang Seng in Hong Kong advanced 0.6% to 23,934.77.
The Kospi in Seoul was 0.5% higher at 1,937.11 and Australia’s S&P-ASX 200 gained 1% to 5,460.50. India’s Sensex lost 2.6% to 30,310.56. Markets in New Zealand and Southeast Asia advanced.
Federal Reserve Chair Jerome Powell expressed optimism Sunday the U.S. economy can begin to rebound in the second half, assuming the coronavirus doesn’t erupt in a second wave. He said a full recovery won’t likely be possible before the arrival of a vaccine.
That appeared to encourage investors who are looking for signs of when global economies might return to normal.
In an interview with CBS’s “60 Minutes,” Powell said the U.S. economy was fundamentally healthy before the virus forced widespread business shutdowns and tens of millions of layoffs. Once the outbreak has been contained, he said, the economy should be able to rebound “substantially.”
The U.S. downturn was the result of an external event instead of problems such as the financial instabilities that led to the 2008 crisis, which may mean “we can get back to a healthy economy fairly quickly,” Powell said.
Powell and Treasury Secretary Steven Mnuchin are due to appear Thursday before a Senate panel to report on recovery efforts.
“Expect policymakers to strike a more cautious tone, emphasizing that we are not out of the woods yet and that there will be more stimulus in the offing,” Stephen Innes of AxiCorp said in a report.
Meanwhile, Japan’s government reported Monday the world’s third-largest economy contracted by 0.9% in the three months ending in March compared with the previous quarter.
That “sharp fall” suggests there is “much worse to come” in the current quarter, Tom Learmouth of Capital Economics said in a report.
The White House added to trade uncertainty by tightening restrictions on Huawei Technologies Ltd. American officials say Huawei, one of the biggest makers of smartphones and network equipment, is a security risk, which the company denies.
Washington said non-U.S. companies that make processor chips for Huawei must obtain permission to use American technology, a move that threatens to disrupt sales. Huawei warned earlier that additional U.S. sanctions on the company might trigger Chinese government retaliation against American enterprises.
In energy markets, benchmark U.S. crude gained $2.78 to $32.21 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.87 to $29.43 on Friday. Brent crude, used to price international oils, advanced $2.08 to $34.58 per barrel in London. It rose $1.37 the previous session to $32.50.
The dollar gained to 107.24 yen from Friday’s 107.08 yen. The euro declined to $1.0816 from $1.0828. | the S&P 500 rose 2.5% in the first few minutes of trading Monday. investors were encouraged to see that european countries were taking more steps to lift lockdowns put in place to contain the coronavirus outbreak. despite rising infection numbers in the u.s., Brazil and some other countries, investors appear to be looking past the outbreak to a recovery. | Positive |
https://www.moneycontrol.com/news/business/economy/coronavirus-lockdown-government-working-on-new-scheme-to-attract-foreign-investment-5235581.html | The central government is planning to come up with a plan to help attract foreign direct investments (FDIs) into India by early next month.
"The government is working on something. A detailed scheme will soon be announced," a senior government official told Moneycontrol.
The government is working on having a more liberalised FDI regime, in order to tackle the economic fallout of COVID-19 pandemic. "Nothing has been finalized yet. Maybe rules and other process-related hurdles can be eased further so that better investments can flow in," the official said.
As a part of the new scheme, the government is also planning on a land pool which could be used to offer land to interested countries.
"Acquiring land is an issue here, there are a lot of legal hurdles. That's the biggest challenge for companies looking at India as a viable option. The government will try to make that less tedious," the official said.
COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show
One of the key focus areas to promote manufacturing would be textiles. "We are in the process of selecting other sectors too. Pharmaceuticals could also be one. But textile would be the key focus, as it needs handholding," the official said.
After agriculture, India's textile sector is considered to be the next biggest employment generator in the country. It employs over 105 million people.
The pandemic came at a time when the sector was battling sluggish growth after demonetisation and the Goods and Services Tax (GST) implementation.
Eleven countries buy 41 percent of India's cotton yarn exports and these countries have reported COVID-19 cases, according to the Cotton Textiles Export Promotion Council (Texprocil).
In value terms, yarn exports are down 30 percent in January-February against a year ago. Cotton yarn exports to China, Iran, Korea and Vietnam have seen a steep decline.
The US and Europe are the two largest markets for Indian textile exporters. Both are imploding with new cases every day. The pandemic has killed more than two lakh people worldwide, with the UK reporting the highest death toll in Europe. The US has reported over 70,000 deaths.
The pandemic has already led to big fashion labels announcing the cancellation of orders and relieving labour. Macy's, the US-based retail giant, has announced that it would grant leave to most of its 1,30,000 employees. British luxury giant Burberry has predicted a steep drop in sales of about 70-80 percent.
The UK-based retailer Primark has cancelled all new orders and Inditex (the owner of popular brand Zara) has written off some $336 million worth of inventory.
"There is a lot of untapped opportunity in the textile sector. World over, the sector has been hit hard. There can be a case of taking advantage of this downturn and making it work in our favour," the official said. | the central government is planning to come up with a plan to help attract foreign direct investments (FDIs) into India by early next month. the government is working on having a more liberalised FDI regime, in order to tackle the economic fallout of COVID-19 pandemic. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. | Positive |
https://www.moneycontrol.com/news/politics/uttar-pradesh-will-play-major-role-in-making-india-an-economic-superpower-yogi-adityanath-4256541.html | Uttar Pradesh Chief Minister Yogi Adityanath on July 28 said the state will play a major role in making the country an economic superpower.
"Uttar Pradesh will play a major role in achieving the target of $5 trillion economy and ensuring that India emerges as an economic superpower in the world," said the chief minister, speaking at the second ground breaking ceremony for industrial projects worth Rs 65,000 crore in the state.
The chief minister said this year the state has achieved 28 percent growth in the export sector which is a big jump.
With investments worth Rs 65,000 crore, about 3 lakh youths may get employed, the chief minister added. | the chief minister says the state will play a major role in making the country an economic superpower. he says this year the state has achieved 28 percent growth in the export sector. with investments worth Rs 65,000 crore, about 3 lakh youths may get employed. the chief minister says this year the state has achieved 28 percent growth in the export sector. he says the state has achieved a 28 percent growth in the export sector. | Positive |
https://www.moneycontrol.com/news/business/real-estate/allianz-real-estate-to-invest-150-million-in-office-development-platform-managed-by-godrej-4329311.html | Allianz Real Estate on August 13 said it will invest USD 150 million (around Rs 1,067 crore) in a dedicated fund managed by Godrej group for development of office properties.
"Allianz Real Estate, acting on behalf of several Allianz companies, has committed USD 150 million to a closed-end office development platform managed by the Godrej Group," Munich-based Allianz group said in a statement.
The Allianz Group is one of the world's leading insurers and asset managers with more than 92 million retail and corporate customers. Allianz Real Estate is the dedicated real estate investment manager within the Allianz Group.
"This investment is part of Allianz's strategy to allocate 50-60 percent of its real estate exposure within the Asia-Pacific to fast-growing markets such as China and India," it added.
The platform, Godrej BTC (GBTC I), targets the development of premium Grade-A offices in tier one cities in India.
Already, it has secured two developments, one each in Mumbai and Gurgaon, totaling 2 million square feet and has a current pipeline of 1.3 million square feet in Bengaluru.
Allianz along with Godrej and a European pension manager will each own a third of the office development platform while Godrej Fund Management (GFM) will act as the investment manager.
Allianz said that this transaction marks the expansion of its real estate presence in India.
In 2017, Allianz made its first investment in India by establishing an office investment platform with Shapoorji Pallonji.
"We continue to believe in the long-term growth prospects of the Indian economy. Strong demographic trends and improving transparency are supporting real estate occupier as well as investor demand, in particular the office sector, which is ideal for long-term institutional investors such as Allianz," said Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate.
GFM's MD & CEO Karan Bolaria said: "our unique blend of strong development management and investment management capabilities positions us well to deliver on the opportunity to develop and manage world class Grade - A office assets across India."
Separately, GFM said in a statement that with this investment from Allianz group it has achieved second and final close of its USD 450 million office development platform.
GFM can now invest in/develop office assets worth over USD 1 billion in value.
With this development, the assets under management for GFM has crossed the USD 1.6 billion mark across asset classes.
APG Asset Management N V (APG) was the cornerstone investor for GBTC-I since its inception in 2018, committing USD 150 million. | allianz real estate to invest USD 150 million in dedicated fund for office development. fund is managed by Godrej group and targets premium Grade-A offices in india. allianz made its first investment in india in 2017. in 2017, allianz established an office investment platform with Shapoorji Pallonji. a total of 450 million office development funds have been raised. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/dont-expect-the-pain-to-last-more-than-2-quarters-vivek-chaand-sehgal-motherson/articleshow/70655439.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Kozhikode IIMK Chief Product Officer Programme Visit IIM Lucknow IIML Chief Executive Officer Programme Visit IIM Lucknow IIML Chief Marketing Officer Programme Visit
What people refer to as a perfect storm could be anybody’s guess but my personal feeling is it is not going to last too long probably maybe one quarter, maybe two at the max, says, Chairman and Co-founder. Excerpts from an interview with ETNOW.The difficulty in various markets are evident and there is no point in repeating that. But in spite of that, Motherson’s numbers are very much on the upside. Our turnover is up 14%. Our results cannot be compared to last year’s because accounting treatments have changed. Also, we have two new plants. The main plant of Tuscaloosa and Kecskemet. So these two are showing certain reactions to the market or to the government conditions. We do have some losses over there.But in spite of that, because for the third quarter running, we have crossed Rs 16,000 crore on the top line and the SMP (Samvardhana Motherson Peguform) revenue growth is more than 35%. If you look at the wiring harness side, EDS supplier PKC has done phenomenally well. MWS (MSSL Wiring System) has done very well and under the conditions, even Motherson in India has done very, very well. There is really nothing to complain about and under the conditions, these are really good results I think.So I am sure all the governments are really looking at the automotive industry in a very close manner because automotive is a huge sector. It involves almost all the industries -- oil, steel and copper. Anything and everything. Look at banking, servicing -- every single automotive is a very huge consumer of that.The governments are very concerned and they are looking into the matter but the environmental stands that have been taken by the government cannot be compromised with. So, they are finding a route by which both can co-exist. Also the quality of air and environment is very important and I agree with that. I think they will take all the right decisions. So maybe another quarter, maybe two quarters, maybe three, I do not know. But I think the pain is showing and the governments are all very alive to this pain.Motherson is very focussed. Our cash flows are very strong, our profitability is maintained and we are seeing huge opportunities for companies where we can buy them out or can work together.The customers are very worried and are telling us to look at the companies and we are looking at that side of it. We think there is going to be a tremendous amount of opportunity in the next quarter or so.Absolutely, that is the other part of it. Our operations and the teams that are looking at the operations in a very sustained manner, are making all the efforts to improve the profitability, the quality and also rearranging the plants because in slow times like this, you can do a lot of plant maintenance, you can do a lot of things which will be ready when the strike back comes, when the order comes in.So they are preparing for that. All of us are looking at a lot of things which the customer is asking us to look at, where the companies can be bought at very low valuations. You will be amazed at what the overall valuations are in the world.It depends because these challenges are new, there is really no history of this kind of severe challenges coming at the same time. What people refer to as a perfect storm could be anybody’s guess but my personal feeling is it is not going to last too long probably maybe one quarter, maybe two at the max.We do not believe that we have to let go of our people.. There is a lot more that we can do. So, we are keeping our stance of breathing with the market. While there are people who are leaving for other reasons, we just do not hire immediately. But we have not let go of a lot of people globally.Absolutely. The conservation is a very, very important thing. But one has to understand what happened in SMP. The SMP plant got caught in the crossfire of trade wars and many other things and all that. It was just bad timing that I have no control over with the result, we could not send our people from various parts of the world into the USA because suddenly they had tightened up on people coming into US.So be that as it may, we cannot give excuses. In Motherson, we have a clear policy of not giving excuses to anybody. Every month, we see improvement there and I am sure in the coming times, you will see how phenomenal it is. SMP actually has grown more than 23% quarter on quarter. When the things will become right, you will have fantastic results.We are a company which does not lower the target just because the market is tough. Targets are made once in five years and we stick with that. That is how we can measure ourselves to that target. We are still maintaining that we will probably meet our target before the end of the year, but again if the thing is right, our target is very clear $18 billion at 40 ROCE. If I can, I will do it. Believe me, there are a lot of companies that are available out there just now.Our debt is very much reasonable, a slight increase is visible at the moment with the numbers that we have given. But that could be because of the Euro and the dollar becoming stronger. Because we have to report it in rupees, we are very comfortable with our debt. It is still much less than our assets and so it is really not a concern. We have enough headroom so that we can collect a lot of money. Believe me, there are a lot of opportunities and that is very exciting. | our turnover is up 14%. our results cannot be compared to last year's' 'our results are very much on the upside' 'our results are very much on the upside' 'our results are very much on the upside' 'our results are very much on the upside' 'our results are very much on the upside' 'our results are very much on the upside' | Positive |
https://www.livemint.com/news/india/goldman-sachs-raises-indian-to-overweight-sees-11-upside-11605158611570.html | MUMBAI: Goldman Sachs has raised Indian equities to overweight on hopes that earnings recovery will lead rally. Goldman Sachs were structural bulls on India but had lowered India to marketweight in April on concerns of nationwide shutdown, rising pandemic cases and expectations of a significant contraction in domestic activity in the absence of fiscal space.
However, the global brokerage house thinks that the investment case for India has improved now and hence has upgraded Nifty to 14,100 by 2021 end, indicating an 11% upside from current levels. Indian benchmark indices have rallied over 60% from the lows hit in March, while making new record highs this week.
“First, India has been a laggard this year underperforming the region by 11 percentage points in US dollar terms. Indian equities are most positively sensitive to the improving prospects of a vaccine, and so we expect a ‘catch up’ laggard rally given the positive newsflow on the vaccine front (which could spur faster than expected recovery)," it said in a note on 11 November.
As the economy recovers from the pandemic-induced contraction, Goldman Sachs expects corporate profits to rebound 27% next year and a further 21% in 2022, after an expected decline of 11% year-on-year this year. “While valuations remain extended and could see some pressure, we expect further market gains driven by earnings recovery," it said.
Sectorally, it expects cyclical sectors to perform better as economic recovery continues to gather pace.
As domestic macro recovery is picking up, Goldman Sachs economists expect growth momentum to continue with real gross domestic product (GDP) growth rebounding strongly to 10% and 7.2% year-on-year over the next two years.
Overall, Goldman Sachs expects 18% total US dollar returns for Asia Pacific regional equities in 2021 as the global economy recovers from the pandemic shock and regional profits rebound from suppressed levels. It said that an upturn in growth and a lag in policy tightening create a sweet spot for equities, especially with light investor positioning.
Besides India, Goldman Sachs is overweight on China and Korea.
Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. | goldman Sachs raised india to marketweight in April. it had lowered India to marketweight on concerns of nationwide shutdown and rising pandemic cases. but the global brokerage house thinks the investment case for India has improved now and hence has upgraded Nifty to 14,100 by 2021 end. indices have rallied over 60% from the lows hit in march. | Positive |
https://www.moneycontrol.com/news/business/goldman-profit-blows-past-estimates-on-trading-surge-5552291.html | Goldman Sachs Group Inc's trading revenue doubled in the second quarter, driven by big swings in stock and bond markets since March, helping the bank beat estimates for quarterly profit by a wide margin.
The bank's shares jumped nearly 4 percent in premarket trading as it posted a 93 percent surge in revenue in its global markets unit, which houses the trading business, cushioning it from the coronavirus downturn.
The performance highlighted the resurgence in trading across Wall Street banks in the second quarter, with JPMorgan Chase also reporting a huge quarter as financial market volumes hit record-breaking levels.
The bank's net earnings applicable to common shareholders rose 2 percent to $2.25 billion in the quarter ended June 30. Earnings per share rose to $6.26 from $5.81 a year earlier.
Analysts had expected a profit of $3.78 per share, on average, according to the IBES estimate from Refinitiv.
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
Investment banking revenue, which includes underwriting, jumped 36 percent to $2.66 billion. Overall revenue jumped 41 percent to $13.30 billion, comfortably beating estimates.
The bank reported a return on equity (ROE) of 11.1 percent for the quarter and return on tangible common equity (ROTE) of 11.8 percent, two key measures of profitability. Goldman said in January it aims to deliver a 13 percent return on equity and over 14 percent return on tangible equity within the next three years. | goldman's shares jumped nearly 4 percent in premarket trading. bank's trading revenue doubled in second quarter, helping it beat quarterly profit estimates. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by building herd immunity to put an end to the pandemic. | Positive |
https://www.businesstoday.in/markets/company-stock/reliance-industries-share-price-rises-stake-sale-jio-platforms-mubadala/story/405995.html | Reliance Industries share price hit a fresh 52-week high today after the Mukesh Ambani-led conglomerate announced the sale of 1.85 per cent stake in Jio Platforms to Abu Dhabi-based sovereign investor Mubadala for Rs 9,093.60 crore. This is the sixth fund infusion in RIL's digital unit in as many weeks amounting to a record Rs 87,655.35 crore investment to help it pare debt.
Share price of Reliance Industries gained 2.39% to hit a fresh yearly high of Rs 1,617 compared to the previous close of Rs 1579.95 on BSE. The large cap stock hit a fresh 52-week low of Rs 867 on March 23, 2020. Since then, the stock has gained 86.50% on BSE.
Reliance Industries stock has gained 9% in the last 5 days. On Nifty, the stock gained 3.35% to Rs 1,474 compared to the previous close of Rs 1,426.75. Total 2.75 lakh shares changed hands on BSE amounting to turnover of Rs 44.10 crore. Market cap of the firm rose to Rs 10.08 lakh crore on BSE.
RIL stock price has gained 8.69% in one week and 9% in one month. It has gained 17.87% since the beginning of this year and risen 5.18% during last one year.
RIL stock trades higher than its 5 day, 20 day, 50 day, 100 day and 200 day moving averages. On Nifty, the stock gained 2.46% to hit a fresh 52 week high of Rs 1,618 against previous close of Rs 1579.80.
Abu Dhabi's Mubadala to invest Rs 9,093.60 cr in Mukesh Ambani's Jio Platforms
Jio Platforms has raised a cumulative Rs 87,655.35 crore from technology investors such as Facebook, Silver Lake, Vista Equity Partners, General Atlantic, KKR and Mubadala in less than six weeks.
Since announcement of Facebook's Rs 43,574-crore investment in Reliance Jio on April 22 which was the first among these investors, the RIL stock has gained 30.82%.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said Mubadala is one of the most astute and transformational global growth investors.
"Through my longstanding ties with Abu Dhabi, I have personally seen the impact of Mubadala''s work in diversifying and globally connecting the UAE''s knowledge-based economy. We look forward to benefitting from Mubadala''s experience and insights from supporting growth journeys across the world," Ambani said.
RIL share price gains 2% after firm raises Rs 84,000 crore through rights issue
Mukesh Ambani scores 5th cheque! KKR to invest Rs 11,367 cr into Jio Platforms | the sale of 1.85 per cent stake in Jio Platforms to mubadala for Rs 9,093.60 crore is the sixth fund infusion in as many weeks. the large cap stock hit a fresh 52-week low of Rs 867 on march 23, 2020. since then, the stock has gained 86.50% on BSE. RIL stock price has gained 8.69% in one week and 9% in one month. | Positive |
https://economictimes.indiatimes.com/markets/bonds/corporate-bond-sales-surge-on-rbis-liquidity-push/articleshow/75614955.cms | Mumbai: Corporate bond sales trebled in April as banks lent to the bluest of Indian blue chips — Reliance, the Aditya Birla Group, the Tatas, and the Mahindra conglomerate — after Mint Road opened a special window that gave highstreet lenders access to more longterm financing at lower costs During the month, companies sold bonds worth Rs 71,628 crore, compared with Rs 23,738 crore in the corresponding period last year, show data compiled by JM Financial.Reliance Industries, L&T, L&T Fin, HDFC, Mahindra & Mahindra, M&M Fin, Aditya Birla Fin and Tata Capital were some of the toprated borrowers.“A combination of RBI ’s TLTRO auctions and surplus system liquidity has resulted in much higher primary issuances in corporate bonds during the month of April,” said Neeraj Gambhir, head, treasury, Axis Bank. “This has helped large corporates access liquidity from the market during current period of stress. While spreads are still on the wider side, the primary issuances have seen much higher activity during recent weeks.”The central bank has been aggressively raising liquidity levels in the system to ensure that credit flows to the needy. It also gave as much as Rs 2.37 crore in the Targeted Long Term Repo Operations so that banks on lend to corporates.The spread or differential between top-rated corporate and the benchmark bond yields remains at 120 basis points, little changed from March. The gauge is at 330-400 bps for double-A rated names now, dealers said.“Credit spreads will take a while to narrow,” said Ashish Vaidya, MD and head of treasury and markets at DBS Bank. “Investor perception about business activities has changed and become uncertain. Sustainability of business firms is in question now.”“Banks invested the most in top-rated bonds in April, bucking past trends when fund houses used to bet mostly on such credit,” said Ajay Manglunia, managing director and head, fixed income at JM Financial. | mint road opened a special window that gave highstreet lenders access to more longterm financing at lower costs. companies sold bonds worth Rs 71,628 crore, compared with Rs 23,738 crore in the corresponding period last year. spread between top-rated corporate and the benchmark bond yields remains at 120 basis points, little changed from March. banks invested the most in top-rated bonds in April, bucking past trends when fund houses used to bet mostly on such credit. | Positive |
https://www.financialexpress.com/brandwagon/lt-foods-owner-of-daawat-basmati-to-spent-rs-45-crore-in-operation-and-marketing/1838901/ | Daawat Basmati Rice’s parent company LT Foods which has entered into the premium healthy segment with the launch of rice-based snack Kari Kari plans to invest Rs 45 crore over the next few years to expand business besides marketing. “This year we will spend anywhere between Rs 3 crore – Rs 4 crore in marketing which will primarily be about creating better samples to catch consumer’s attention. The aim is to drive sampling of the product at retail stores, airlines, multiplexes, corporates, and colleges, among others,” Ritesh Arora, head- India, Far East and new business, LT Foods, said. Currently, the company claims to be using online including social media platforms in addition to e-commerce sites, to spread awareness of the brand.
LT Foods Ltd has rolled out the snack in a joint venture with Japanese rice crackers company Kameda Seika. Overall, the company plans to invest Rs 70 crore, in the JV and of this Rs 25 crore has been utilised for setting up manufacturing facilities in Sonipat, Haryana. “Based on changing consumer needs and preferences, and the increase in demand for healthy snacks, we ventured into the premium snacks category in India. Thanks to millennials’ need to try new products, this premium snacks category is recording a growth rate of 20%-25% per annum,” Vijay Kumar Arora, chairman and MD, LT Foods Ltd, said.
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According to Ritesh Arora, the company will use TV to advertise and create a buzz about the product at a later stage. Calling it the second phase of marketing he stated that the firm intends to invest Rs 15 – Rs 20 crore in TV advertising. “From the third year of operations, we plan to go on TV via ads because by then we would have established awareness and our marketing will be more about reach. As our target group (TG) is a health-conscious millennial who is receptive to new products, we will primarily release ads on English channels,” he noted.
As per industry estimates, the Indian snacks industry is valued at Rs 30,000 crores, of this premium and healthy snacks market is estimated to be worth at Rs 1,000 crore, growing at a rate of 22%-25% annually. The company aims to grab 3%-5% share of the premium healthy snack market in the next three years.
Daawat-Kameda India aims to clock revenue worth Rs 10 crore from the sale of Kari Kari snack by the end of FY21. The company is looking to generate revenue worth Rs 130 crore in five years, on the back of a profit margin of 35%. Moreover, Kari Kari snacks will be exported to the Middle East, Bangladesh, Nepal and Sri Lanka. These markets are expected to contribute 15% of the overall sales of the company. Available in four different flavours, Chilli Garlic, Wasabi, Salt and Pepper and Spice Mania, Kari Kari is priced at Rs 50 for 60 grams and Rs 99 for 135 grams pack. The company plans to have a presence at 20,000 retail outlets and 35,000 outlets by 2024.
As for the parent firm, LT Foods, it expects to clock Rs 4,100 crore in revenue by the end of FY20.
Read Also: Google.org donates $1 million to Internews to fight fake news in India | LT Foods has entered into the premium healthy segment with the launch of the snack. the company plans to invest Rs 45 crore over the next few years to expand business. the company plans to spend between Rs 3 crore – Rs 4 crore in marketing. the aim is to drive sampling of the product at retail stores, airlines, multiplexes, corporates, and colleges, among others. | Positive |
https://www.financialexpress.com/market/sensex-nifty-rally-on-firm-global-cues-check-whats-driving-dalal-street-higher-today/1943920/ | Bulls roared for the fourth consecutive day on Thursday supported by a host of quarterly earnings, April series F&O expiry and hopes of treatment for coronavirus globally. BSE Sensex was trading 841 points or 2.57 per cent at 33,561, while the broader Nifty 50 index jumped 240 points or 2.53 per cent to trade at 9,795. Barring, Hindustan Unilever (HUL) and Sun Pharma, all the Sensex stocks were trading in green with Hero MotoCorp as top gainer. “Yesterday, the market has witnessed gains from all major sectors. We are expecting it to continue for the day also. Major contributions are expected from the banking and NBFC sector whereas FMCG and pharma may remain sideways,” Vishal Wagh, Head of Research, Bonanza Portfolio Ltd.
Nifty surges past 9,800: Extending the rally from the previous session, Nifty surged past 9,800 level today. Similarly, the 30-share Sensex gained 900 points to hit day’s high of 33,640. Overall, 48 of 50 stocks were trading in the green on Nifty 50 index. Tata Motors was the top Nifty 50 gainer, followed by Hero MotoCorp, Vedanta, Hindalco Industries and Tata Steel.
Nifty Auto, Nifty Metal up over 5%: All the Nifty sectoral indices were trading in positive territory. Nifty Auto index gained 5.71 per cent led by Bharat Forge, Tata Motors and Ashok Leyland. While Nifty Metal was up 5 per cent driven by Vedanta, Tata Steel and SAIL.
RIL, HUL Tech Mahindra Q4 earnings: Index heavyweights such as RIL, HUL and Tech Mahindra are scheduled to announce their March quarter results later in the day. RIL and Tech Mahindra were trading with gains while HUL was ruling with 0.23 per cent decline.
Firm global cues: Asian stock markets were set to gain on Thursday, tracking Wall Street’s rally after positive trial results of an experimental coronavirus treatment, a US Federal Reserve pledge to shore up the economy and a jump in oil prices. Australian S&P/ASX 200 futures were up 2.02%, while Japan’s Nikkei 225 futures were down 0.2%. In overnight trade on Wall Street, US stocks surged on hopes for an effective coronavirus treatment prompted a broad rally and helped investors shrug off bleak GDP data and words of warning from US Federal Reserve Chair Jerome Powell. The Dow Jones Industrial Average rose 2.21%, the S&P 500 gained 2.66% and the Nasdaq Composite added 3.57%.
US Federal Reserves keeps interest rates near zero: In its policy statement on Wednesday, the Fed left its benchmark overnight lending rate in a target range of 0% to 0.25% and repeated a vow to use its “full range of tools” to shore up the economy amid what it now says are “considerable risks” over the medium term, perhaps a year or more, according to Reuters. | Sensex was trading 841 points or 2.57 per cent at 33,561. broader Nifty 50 index jumped 240 points or 2.53 per cent to trade at 9,795. Tata Motors was the top Nifty 50 gainer, followed by Hero MotoCorp, Vedanta, Hindalco Industries and Tata Steel. | Positive |
https://www.financialexpress.com/economy/green-shoots-in-the-economy-are-visible-pm-modi/1993732/ | Prime Minister Narendra Modi on Tuesday asserted that ‘green shoots’ had started to emerge in the economy and called for the need to focus on both lives and livelihood while ensuring that economic activity gathered pace, with the lifting of various lockdown-related curbs over the past two weeks.
Taking stock of the situation with chief ministers of various states via video-conference following the Unlock 1.0, the Prime Minister said: “Green shoots have begun to emerge in the economy, power consumption has begun to go up, fertiliser sale in May has been double that of May last year; kharif crop, two-wheeler production, digital payments too showing positive signs.”
Modi met chief ministers and lieutenant governors of 21 states and Union territories, including Punjab, Kerala, Uttarakhand and northestern states on Tuesday. On Wednesday, the Prime Minister is scheduled to meet chief ministers of another 15 states (relatively large ones), including Maharashtra, Uttar Pradesh, Tamil Nadu, Rajasthan and Gujarat.
He also exhorted the states to work together on strengthening value chains to revive trade and industry. “The more we are able to contain the spread of Covid-19, the more we will be able to open up our economy, markets, offices, transport modes and the more new job opportunities will emerge,” he said.
At the same time, Modi also highlighted the need to to follow all precautions such as wearing masks, maintaining physical distance and cautioned against any laxity.
Stressing that the country’s recovery rate has exceeded 50%, the Prime Minister said India is now among those countries where the number of death is among the least, even though the government considers every death as unfortunate and sad. Timely decisions have helped the country contain the fury of the pandemic, he added.
“Thousands of Indians have returned home from abroad, lakhs of migrant workers have reached their villages; rail, road, air and sea routes have been opened, even then, despite having such a big population, Covid-19 has not spread as much as in some countries,” Modi said. “When India’s fight is examined in future, how we fought this together, providing a fine example of cooperative federalism, will be noted,” he said.
According to the health ministry data, India has 1,53,178 active Covid cases, while 1,80,012 people have been cured and 9,900 people have died of the pandemic.
“Two weeks of the Unlock 1.0 has shown that if we follow rules and guidelines, there will be minimal harm due to Covid-19,” he added. “If we ensure through bankers’ committees that enterprises get prompt credit, it will help them resume operations and provide employment to people,” the Prime Minister said.
The Prime Minister also shed light on various relief measures for critical sectors of the economy under the recently-announced Rs 21 lakh crore package, including for MSMEs, agriculture, horticulture and fisheries. The package includes collateral-free, extra working capital loans for MSMEs (up to 20%) with official guarantee, which is expected to benefit 45 lakh MSME units. | prime minister says 'green shoots' have begun to emerge in economy. he met chief ministers of 21 states and utmost territories. he is scheduled to meet chief ministers of 15 other states on tuesday. he stressed that the country's recovery rate has exceeded 50%. he said the country is now among those countries where the number of death is among the least. | Positive |
https://www.financialexpress.com/industry/technology/withings-move-ecg-a-rs-9200-alternative-to-apple-watch-series-4-launched-at-ces-2019/1437240/ | When Apple launched the fourth generation of Apple Watch last year, it showed the world the capabilities of a smartwatch can be extended to chart the electrocardiogram of the user’s heart. By far it was the most productive feature to be loaded on a smartwatch. Until now. At the CES 2019, Withings launched an analogue watch called Move ECG that comes integrated with an ECG feature and costs significantly less than the Apple Watch Series 4. Besides, the company also announced the launch of two more wearables – Move and BPM Core.
The Withings Move ECG, however, is still to get approval from US FDA for the functioning of the ECG, which means that the wearable will not make it to the market until the approval is given. But Withings is optimistically telling the customers that the Move ECG will start shipping in Q2. The Withings Move ECG costs $130, which is approximately Rs 9,200. The Withings Move (without ECG) costs $70 (approximately Rs 5,000) and is claimed to begin shipping in 4-5 weeks. The BPM Core is priced at $250 (roughly Rs 17,500) and will roll out in the markets in Q2, said Withings at CES.
Unlike the conventional smartwatches, the Withings Move ECG is an analogue watch that can be paired with an Android or iOS device. It is touted to deliver 12 months of battery life. The ECG feature on the wearable is facilitated by three electrodes – two under the bottom surface and one in the bezel. The user will need to touch both the sides of the bezel to begin the reading – the watch will vibrate when the reading is recorded. The ECG data will be available to see in a companion app called Health Mate on the phone.
Apart from recording the heartbeat patterns, the Move ECG can track steps, activities, and sleep of the user. All of these activities are available on the Withings Move except for the ECG feature. The Move is touted to give a battery life of 18 months. It is available to pre-order now via the company website.
The Withings BPM Core is an overall wearable that offers the tool to measure the blood pressure in addition to recording ECG of the user. It’s essentially a cuff that is attached to a cylindrical monitor for blood pressure, heartbeat patterns. It also doubles up as a digital stethoscope to record the heart beats and inform of any cardiovascular data. The wearable can be chared via a MicroUSB port. | withings launched an analogue watch called Move ECG that comes integrated with an ECG feature and costs significantly less than the Apple Watch Series 4. the move is still to get approval from the us FDA for the functioning of the ECG. the wearable is said to begin shipping in 4-5 weeks. the withings BPM core is priced at $250 (roughly Rs 17,500) and will roll out in the markets in Q2. | Positive |
https://www.moneycontrol.com/news/economy/policy/defence-has-just-got-more-firepower-thanks-to-aatmanirbhar-bharat-5286921.html | The contours of India’s latest efforts to boost indigenous defence production have Make in India written all over. Measures laid out by Finance Minister Nirmala Sitharaman last Saturday include banning the import of weapon systems that can be made in the country, corporatising the beleaguered Ordnance Factory Boards (OFBs) and raising Foreign Direct Investment (FDI) in defence manufacturing to 74 percent from 49 percent.
These weapons acquisition plans — part of the Rs 20 lakh crore stimulus package for re-starting an economy reeling under the COVID-19 stranglehold—are in line with Prime Minister Narendra Modi’s idea of building an Aatmanirbhar Bharat (self-reliant India).
By all accounts, the catalogue of prohibited arms imports is to get longer every year depending on fresh inputs from the armed forces. “We will notify a list of weapons and platforms for ban on their imports and fix deadlines to do it,” said Sitharaman. These platforms must be bought only from domestic companies and not from foreign firms and the spares for these weapons must also be manufactured indigenously. To facilitate this, the government intends to make a separate budget provisioning for domestic capital procurement.
“This will help reduce a huge defence import bill,” Sitharaman noted. It is not clear, though, how the government will revamp the scores of OFBs which are under fire for producing inferior armaments including artillery shells. The minister, however, ruled out privatising them and indicated overhauling their management instead so that they could be listed on the stock market. And since the steep increase in the FDI cap in arms manufacturing falls under the automatic route, it does away with the need for government sanction.
These reforms could not be happening sooner, considering India’s dubious tag of being one of the biggest arms importers in the world. In fact, the latest report from the Stockholm International Peace Research Institute lists the US, China and India — in that order — as the world’s three biggest military spenders in 2019. Russia and Saudi Arabia occupy the fourth and fifth spots, respectively.
The irony is that, despite this, India continues to lag many other countries in its actual military spending. Set against its gross domestic product (GDP), India’s defence expenditure remains at the bottom of the list of big military spenders. The country’s latest defence budget, in fact, hovers below the 1.6 percent mark of GDP — the lowest since the Sino-Indian conflict of 1962. It is hard to explain why a country, whose economy grew at around 7 per cent annually till recently, cannot afford to spend even 2 per cent of its GDP on national security. Tiny Singapore, with a population of about five million, has a defence budget that accounts for 5 percent of its GDP!
The new measures announced by the government will go a long way in reducing India’s overdependence on imported military hardware: an Achilles’ heel of the Indian military. For the effort to succeed, however, it is important for all three services to change entrenched mindsets. For instance, the chief reason for the military’s preference for imports has to do with services qualitative requirements (SQRs): specific conditions that must be met before new weapon systems are accepted.
Most of the time, unrealistic SQRs are quoted which cannot be met by state or local private companies and, as a result, the advantage passes to foreign vendors. It is high time the armed forces stopped flagging concerns about SQRs needlessly and approved equipment produced locally even if all the SQRs are not met, provided, of course, there is no compromise on military capability.
Now that policymakers have redefined defence procurement with a focus on indigenisation, building a military-industrial complex in the country no longer seems like a pipedream. Along with a long-term integrated perspective plan -- to keep the industry informed in advance about the military’s requirements -- this will help unfold a new road map for modernising India’s armed forces.
Prakash Chandra is former editor of the Indian Defence Review. He writes on aerospace and strategic affairs. Views are personal. | measures laid out by finance minister Nirmala Sitharaman last Saturday include banning the import of weapon systems that can be made in the country. corporatising the beleaguered Ordnance Factory Boards (OFBs) and raising Foreign Direct Investment (FDI) in defence manufacturing to 74 percent from 49 percent. the latest report from the Stockholm International Peace Research Institute lists the US, China and India — in that order — as the world’s three biggest military spenders in 2019. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/pune-based-value-investor-phalke-says-focus-on-basics-can-make-you-millions/articleshow/65288502.cms |
Pune-based value investor Chetan Phalke seeks to draw a simile between investing and sport, in that one can get better at either only with time.And, he firmly believes that there is no better place than equities to exploit the India growth story.A full-time equity investor, Phalke has a knack for spotting out-of-favour sectors as well as companies that can grow significantly over time. He spotted basmati rice-exporting firm KRBL it had a market capitalisation (m-cap) of just Rs 600-700 crore in 2011-12. By the time he exited the stock in April-May 2018, the m-cap had topped Rs 10,000 crore.Some other big stories that he spotted early over the past few years include Take Solutions, La Opala, Mirza International, Wim Plast, IFB Industries, Cera Sanitaryware and Siyaram Silk Mills.Phalke has a three-point check list for stock picking: the business has to have a substantial revenue base, it must be in a leadership position in its segment and there should be a large undervaluation.“It makes better sense to buy such companies when they are facing temporary problems and are available cheap. These companies can improve profitability by correcting their cost structures and leveraging existing capabilities,” says he.He also keeps hunting companies with suppressed historical return on equity (ROE) and the ones which are in businesses with strong entry barriers.Phalke says investors often tend to overlook these pockets due to unattractive historical ratios, especially return on capital employed (ROCE) or ROE, or capital misallocation mistakes the management would have made in the past,.Return on equity or ROE is a measure of profitability that calculates the profit that a company generates on each rupee of shareholders equity, while RoCE measures a company's profitability on the capital employed or efficiency with which it uses the capital available to it.“We don’t mind compromising on quality, as long as it is built into the price. We like situations where there is uncertainty, but very low risk. Most of the times, we buy out-of-favour companies. We go for a balance sheet that can survive even if things go bad,” Phalke told ETMarkets.com.Phalke says as long as a business is gaining market share, it pays to hold on to the stock.The critical factor here is when to sell. “It is a subjective decision and parameters change with every company,” he says, adding that selling is often also a function of other opportunities available.Sell good to buy better.If you have found something better than what you already hold, it makes sense to switch, says the Pune-based investor.He insists that there is no formula to determine the right price to buy a stock. “In non-linear businesses, you can afford to pay top dollar for a great business franchise, because exponential growth will cover for it. However, it is very important to be price-conscious, and buy stocks at their historical low multiples if you are buying a linear business,” he says.Phalke is the founder and research head of a boutique investment advisory firm Alpha Invesco Research which started in 2009. Alpha Invesco bought only five new stocks over the last three years.His portfolio has generated over 24 per cent return CAGR over last three years and at 35 per cent annualised return since 2009-10.He says he was not comfortable with the valuations in midcaps, a space most investors scour for above-average gains. “We never saw this kind of valuation multiples in smallcap and midcap companies. Hence, we preferred to stay away,” he said.Over the past few months, Phalke has started adding shares of Raymond and Steel Authority of India (SAIL).He says Raymond has a very sticky cash flow coming from its branded textile business and it is building a solid branded retail franchise by using this cash. It is also expanding product portfolio across aspirational categories and is aggressively working on improving distribution platforms.“As our per capita incomes cross $2,000, the consumption theme will play out in a big way over the next few years. And Raymond should be a beneficiary of that. The management has left legacy issues behind and is doing the right things,” he added.Phalke says SAIL is offering comfortable entry valuations and a solid outlook. “The company has just completed its modernisation and expansion programme, where it expanded capacity from 14 MT to 21 MT. Its cost of production is moving down, as the company has invested heavily in upgradation of old facilities. Blended realisations, too, are expected to move up, as incremental production from new blast furnaces is of a much higher quality. The overall product mix is changing in favour of long products, which augur well for SAIL. The workforce has shrunken from 1.3 lakh employees to 76,000 in last decade and will shrink further towards 60,000 in three years. Things are looking up as of now,” he said.Unit-level economics, cash flow generation capability and entry barriers are some of the factors one should look at while zeroing in on a company, says the value investor.While Dalal Street is obsessed with headline numbers, it really gives an edge if there is a clear understanding of unit-level economics, he said.For example, if it’s a tyre company, then an investor should look at costs per tyre and absolute Ebidta per tyre. If it’s a cement company, then look at cost, realisations, and profit per bag, and so on.The ability of a business to generate cash flow is critical, Phalke says. He prefers to stay away from sectors where capacity can be built quickly.“Most of the money is made when there is a combination of earnings growth plus re-rating. It is difficult to have a sustainable re-rating in stocks where there are no entry barriers,” Phalke said.He also screens companies on the basis of other parameters such as sales-to-market-cap and total assets-to-market cap ratios, as he believes they are good indicators to identify pockets of over-optimism and pessimism.During his investing journey, Phalke made many mistakes, such as ignoring business risks, betting on risky balance sheets, ignoring the quality of growth and the common folly of selling early.Without naming the stocks, Phalke said he has invested in a B2B stock in 2011, in which more than 50-60 per cent of the revenue was coming from a single customer. Eventually, the customer walked away over some disputes and the company suffered massive losses. The stock fell more than 70 per cent from his initial purchase price. The damage was controlled due to low allocation.“It shakes you up from within when your stock falls 70-80 per cent. Customer concentration risk was right there in front of my eyes, but I simply failed to recognise it,” Phalke recalls.In 2015, he bought into a diversified engineering company. The revenue was growing, valuations were cheap, the balance sheet was fairly okay and the promoter had a track record of scaling up businesses.However, the cash flows never improved and the working capital cycle kept on expanding. “This experience taught us to pay attention to the quality of growth and quality of the business. These are bigger drivers than cheapness of a stock. After holding it for almost three years, the stock has gone nowhere, and we are trimming down our positions. There was no capital loss, but a huge opportunity cost,” said Phalke.Selling out early has cost him many times. In 2016, he sold off three stocks after staying put for many years, only to see two of them surge over 500 per cent. The third stock fetched over 1,000 per cent in next 24 months.“These were high potential businesses with very high intrinsic values. But these numbers were just not coming and the stock price was going nowhere. When you get too early into a theme, you may get tired and sell out of frustration. After a point, you start tracking quarterly numbers very actively and lose perspective on the big picture. This episode has taught us a very important lesson. Discovery of a high potential stock idea is not everything. One must spend time with the idea, and learn to scale up positions as the business starts performing,” he said.In his early days in market, Phalke was deeply influenced by Peter Lynch’s buy-what-you-see approach. However, that has changed with time. Lynch is one of the most successful and well-known investors globally.“Earlier I used to start with profit & loss account, then move on to the balance-sheet and then cash flow. Now, it is exactly the reverse. I try and link business economics with balance sheet first, and then start looking at the P&L side. The approach has evolved from only quantitative to more qualitative over the years,” said Phalke.Making money in the markets is not easy. Your hypothesis may be right, but timing can go wrong. You may identify the right sector but get into a wrong stock. One must be very conservative and leave some room for error while buying stocks. It is very important to protect capital even if the original investment rationale goes wrong. Survival is the key to success in equity markets. You make money in spurts, so it is very critical to stay in the game.“I would advise investors to avoid group thinking. One must ignore experts who make generalised statements. Recently, we heard of things like RERA will kill 90 per cent of builders, GST will kill unorganised players, oil will go to zero and what not! Don’t believe in everything you read. Do your own work if you want to make big money. Avoid sell side reports if you can. Because everybody has the same data and the Information edge is gone,” said Phalke.As Howard Marks says, “And, who doesn’t know that?” How you evaluate a business is very important than anything else.“We see a lot of chatter around winning stocks and sectors. But portfolio allocation is one of the least discussed topics within the investor community. There is no point if we don’t bet big when the odds are in favour. One must back up the truck and give meaningful allocation to high conviction ideas. A portfolio is not going anywhere when 2 per cent allocation becomes a 10-bagger. In our entire investment career, all we need is 5-7 big movers with sizeable allocations. That’s how networth moves into a different orbit,” said Phalke.Phalke said top 20 per cent of India’s population has 76 per cent of the surplus. The middle 40 per cent has the remaining 24 per cent, while the bottom quartile, which is almost 40 per cent of the population, has 0 surplus.These people were never in the consumption pool. The numbers are not going to change overnight. It will be a slow but directional change. In India, changes tend to be incremental, and not transformational. As investors, there are multiple ways to play this change, Phalke says.Phalke says themes related to food processing and non-PCA PSU banks are looking interesting at the moment. “Farm productivity is going up on the back of mechanisation, usage of better fertilisers and irrigation techniques. Supply of food articles should keep on increasing, which will control food inflation. However, more and more food needs to get processed over a period of time to increase rural incomes. India is not even processing 2 per cent of its farm output. Plays around food processing and related value chain can really grow significantly,” he said.On non-PCA PSU banks, he says they have huge customer bases and presence across India that can be leveraged if they start cross-selling various financial products.“SBI has 27 crore debit cards, Bank Of Baroda has more than 5 crore debit cards! Pre-provisioning operating profits are stable or improving in some cases. Most of the banks have provided adequately over the last three years. Once provisioning peaks out, profit after tax numbers for many of these banks are going to look very different,” he said.Phalke also likes steel sector. Everything is falling in place for steel companies. Demand is going up, supply is tight, and the government is in protection mode. A 90MT market cannot become a 200 MT market by allowing imports in a big way.“Our GDP multiplier for steel has bounced back above 1 for the very first time since 2013 and growth is back to 8-9 per cent. Almost all integrated steel companies have stretched balance sheets. Their priority will be to finish ongoing capex and ramp up their existing unutilised capacities. New capex is unlikely to be announced till FY 20-21. We are looking at a very tight supply side situation for the next 4-5 years. Almost all steel players are going to have brimming capacity utilisations and perhaps a profitable time where they will be able to deleverage and prepare for the next capex cycle,” he added. | he spotted basmati rice-exporting firm KRBL it had a market capitalisation of just Rs 600-700 crore in 2011-12. by the time he exited the stock in April-May 2018, the m-cap had topped Rs 10,000 crore. he also keeps hunting companies with suppressed historical return on equity (ROE) and the ones which are in businesses with strong entry barriers. | Positive |
https://www.financialexpress.com/industry/article-370-revoked-how-govts-move-may-boost-real-estate-market-in-jammu-kashmir/1671266/ | By Honey Katiyal
The Indian Government on August 5 created history by revoking Article 370 and 35A that grants special status to Jammu and Kashmir. The landmark decision that bifurcates the state into two separate union territories i.e. Jammu & Kashmir and Ladakh has not only brought a big cheer to the whole nation but has also opened a new gateway for the real estate market and investments in the country.
Till now, Article 35 A has stopped outsiders from acquiring any land or carrying out real estate investment in the state. But, now the history has bygone and post this announcement, the hilly and the serene land may witness a surge in investment. It may be in residential, commercial, retail or hospitality segments.
The significant move of scrapping the long-prevailing Article 370 has opened floodgates of many potential opportunities in these depressed property markets which were lacking behind in property prices as well as lucrative investments. Deterred private investments, shutting out of job opportunities has curtailed the economy of J&K leading to slow growth.
Because of this, being a tourist destination, the economic growth of the two cities was far behind from their counterparts or other Tier-2 cities. Moreover, the non-allowance of investing in immovable property by non-residents was another keynote challenge that was the part of Article 35 A.
All this will now be addressed once the changes will be ratified and smoothly taken up by both UT. But, then as said that every new move comes with some special attention. Although the face of the realty market will be going to change, investors and the realty developers must take cautious steps before entering into the market as it is too early to predict the future.
With problematic geography and unstabilized socio-political situation, the residential and commercial market may take some time to catch up the momentum. But, with organised infrastructural developments in segments like hospitality, tourism, entertainment, and retail the above real estate segments may sooner attract better investment opportunities.
Such moves will also create a positive impact on the depreciating property value and prices prevailing for years in both Jammu and Kashmir. Some of the prime localities have not even seen a jump in the price from a decade. So, the removal of the restriction on property buying and selling will further appreciate the price of land parcels and buildings in these prime localities.
Furthermore, apart from the government policies like a strict RERA, the local investors have to come up and build a strong real estate network to enhance the investors’ confidence. The growth model of other tier-2 cities where the local investors attracted big developers and firms to add thrust to their property market is a perfect example. Following the same model, even these two hilly states can in the future become an investment hotspot for HNIs and NRIs who always look to invest in scenic surroundings and lucrative markets apart from mid-level buyers.
The future of the real estate market is bright in both Jammu and Kashmir, but the investors must not get swayed away by this. A pragmatic approach is very much necessary to achieve returns and earn a profit from these distressed markets.
The author is CEO & Founder Investors Clinic. | the decision to bifurcate the state into two separate union territories has brought a big cheer to the whole nation. it has also opened a new gateway for the real estate market and investments in the country. the significant move of scrapping the long-prevailing Article 370 has opened floodgates of many potential opportunities. the move will create a positive impact on the depreciating property value and prices prevailing for years in both the state. | Positive |
https://www.livemint.com/Companies/ii9uDKBV4dbagDmzgGdn1K/Amazon-partners-FISME-to-educate-MSMEs-about-online-selling.html | New Delhi: Amazon India Thursday said it has partnered with FISME to help micro, small and medium enterprises (MSMEs) tap into opportunities in the e-commerce sector. According to the pact, Amazon.in will collaborate with The Federation of Indian Micro and Small & Medium Enterprises (FISME) to conduct various events and workshops across the country that will enable MSMEs sell their products online.
“The MSME sector plays a critical role in the growth of Indian economy. A significant number of the 4,00,000 sellers on Amazon India’s platform is SMEs. Also, unique products sold by MSMEs empower our customers to have access to increased selection," Amazon India Director and GM (Seller Services) Gopal Pillai told PTI.
He added that the tie-up with FISME will help in educating MSMEs on the nuances of online selling domestically, and also about B2C exports so as to enable them sell across multiple international locations.
Amazon.in, which is locked in a bruising battle with Walmart-backed Flipkart, has been partnering with a number of government bodies and non-profit organisations to bring SMEs on board. These include National Institute for Entrepreneurship and Small Business Development (NIESBUD), UP and Telangana governments, among others. Amazon India is also organising a ‘Small Business Day’ on December 16 that will offer customers the opportunity to discover unique and hard-to-find products from MSMEs under its various programmes such as Kala Haat, Amazon Saheli, Amazon Select, and Amazon Launchpad.
“We expect participation from tens and thousands of small and micro businesses on Amazon.in as part of this event,"he said.
(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 | pact will help micro, small and medium enterprises (MSMEs) tap into opportunities in the e-commerce sector. amazon.in will collaborate with the Federation of Indian Micro and Small & Medium Enterprises (FISME) to conduct various events and workshops across the country.'small business day' will offer customers the opportunity to discover unique and hard-to-find products from MSMEs. | Positive |
https://www.financialexpress.com/industry/novartis-india-appoints-sanjay-murdeshwar-as-vice-chairman-md/1608504/ | Novartis India on Saturday announced the appointment of Sanjay Murdeshwar as vice chairman and managing director of the company. “..based on recommendation of the Nomination and Remuneration Committee of the Board, the Board of Directors of Novartis lndia Ltd at their meeting held today, have approved the appointment of Sanjay Murdeshwar as Vice Chairman & Managing Director of the Company effective June 15, 2019, subject to the approval of Shareholders and Central Government,” a the pharma company said in a regulatory filing.
Currently, he is Country President, Novartis in India. He is also responsible for the company’s pharmaceuticals business in India. He is also managing director of Novartis Healthcare Private Ltd. The industry veteran has more than 20 years of experience in the healthcare industry which includes varied roles in the pharmaceuticals and consumer health businesses, it added.
He was associated with AstraZeneca based in Maryland, USA as Vice-President in their Global Product & Portfolio Strategy group before joining Novartis. Before that he held various general management roles with AstraZeneca. Murdeshwar also served Bayer AG with stints in various roles based in both developed and emerging markets. He has a Bachelors’ Degree in Chemical Engineering and MBA.
Also read: Maharashtra govt to meet dairy owners on buyback mechanism for milk pouches
The drug major reported 26.21 per cent decline in net profit at Rs 19.53 crore for the quarter ended March 31, 2019. The company recorded a profit of Rs 26.47 crore in the corresponding period of the last fiscal. The revenue from operations for the quarter under review was recorded at Rs 110.38 crore as against Rs 125.32 crore in the same period of the last fiscal year. Novartis is one of the leading pharma manufacturers working in India. | the board of directors of Novartis lndia Ltd have approved the appointment of Sanjay Murdeshwar as vice chairman and managing director of the company. he is currently country president, Novartis in india. he is also responsible for the company’s pharmaceuticals business in india. the industry veteran has more than 20 years of experience in the healthcare industry. | Positive |
https://www.financialexpress.com/industry/electronics-hp-gearing-up-for-growth/1408478/ | With the PC market in urban centres offering limited room for growth, HP India is looking for greener pastures. It is aiming for growth from the gaming sub-category as well as the relatively untapped tier III and IV markets, with an eye on millennials.
The past year saw two big initiatives from HP. For the first time, the company became the principal sponsor of IPL team Royal Challengers Bangalore and also opened a 1,000-sq-ft marquee store in Gurugram. With retail expansion and marketing, the original equipment manufacturer (OEM) hopes to brace up for the headwind caused by the widespread adoption of smartphones, and also expand the total addressable market (TAM). The company, which commands close to two-thirds of the market in the consumer segment and has nearly 31% share in the PC segment, has based its India market strategy on three pillars — retail expansion, customer and partner experiences, and engagement with its TG.
“We see that people don’t find relevance in buying PCs and sales are shifting to other formats,” says Gurpreet Brar, senior director — consumer sales, HP India. “But the Indian economy is growing by 6-7% and our growth rate is not aligned with the demographic dividend. So we are investing in initiatives to increase TAM, to make sure more people feel the need to buy PCs.”
The retail game
HP has close to 10,000 retail touchpoints in India, which includes 600 HP World stores in 300 cities. Given that the growth is coming from beyond metros and tier I cities, HP is focussing on HP World franchise stores to drive expansion and experience. “These are captive stores where we have larger control on the consumer experience. In fact, we added 300 stores after the split in 2015 with the enterprise division and are adding 100 stores per year,” says Brar. Around 70% of HP World stores are in tier II and III cities, and it plans to expand to tier IV and V markets.
The way the stores are designed — by blending HP online and HP World to offer an ideal omnichannel experience — is another critical aspect. For this, it has trained its staff in the top 200 stores in soft skills.
Gaming is a big trend in the PC space not only in the top 10-15 cities, but also in tier II and III cities. “The segment grew in triple digits sequentially from Q2 to Q3 in CY 2018 on the back of online sales,” says Nishant Bansal, research manager, IPDS & PC, IDC India. “We are seeing growth in the under-Rs 1 lakh category as a sub-segment for casual gaming.” HP has launched Pavilion 15 models in this price range and also set up gaming zones within 40 HP World stores.
The gaming space is led by Acer, Dell and Asus. According to IDC estimates, the current festive season (Q2 and Q3) saw nearly 170% growth in gaming notebooks.
Looking ahead
Online sales, increase in retail presence through exclusive stores, strong partner and end user engagement, and marketing are key factors working in HP’s favour, according to Bansal. To drive visibility, HP has been focussing on advertising in the last one year. “We are making more investments in digital and social media, and are looking at properties with high reach in 2019 as well,” Brar adds.
IDC forecasts 14-15% growth in the overall traditional PC segment in CY 2019. “We expect the momentum to continue in the consumer segment driven by online sales and new product launches tailored towards generation Z and millennials,” Bansal predicts. | HP India is aiming for growth from the gaming sub-category as well as the relatively untapped tier III and IV markets. the company became the principal sponsor of IPL team Royal Challengers Bangalore and also opened a 1,000-sq-ft marquee store in Gurugram. the retail game HP has close to 10,000 retail touchpoints in india, which includes 600 HP World stores in 300 cities. | Positive |
https://www.financialexpress.com/industry/banking-finance/inditrade-microfinance-disburses-over-rs-600-cr-loans/1720619/ | Inditrade, which secured its micro-finance licence in 2017, has disbursed over Rs 600 crore loans. “We strongly believe that there are significant opportunities in the rural and semi urban areas across states, for a focused micro-finance player to offer unsecured micro business loans,” said Inditrade Group of Companies chairman Sudip Bandyopadhyay in a statement on Saturday.
The company is working with over 1.7 lakh women entrepreneurs and playing a vital role in their success. Supporting the vision of the government on Digital India, he said, the company had launched a completely digitised process at inception.
“With the country already moving towards becoming a digitised economy, we plan to leverage technology in fulfilling our aim of reaching our customers and catering to their requirement for finance in the most effective and convenient manner,” he added. | Inditrade secured its micro-finance licence in 2017. the company is working with over 1.7 lakh women entrepreneurs. the company is working with a digitised process at inception. the company is supporting the government's vision on digital India. the company has disbursed over Rs 600 crore loans. a total of Rs 2,000 crore has been raised. | Positive |
https://www.financialexpress.com/lifestyle/travel-tourism/everything-you-need-to-know-to-visit-south-africa/2148062/ | Are you visiting South Africa for the first time? Or wondering is South Africa safe for tourists or what is the best time to visit South Africa? Look no further! An industry veteran of 20 plus years in the global tourism & hospitality arena with over three years of dedicated experience with South African Tourism, Neliswa Nkani, Hub Head – MEISEA, South African Tourism, has in-depth expertise of national government and local government positioning as well as familiarity with legislations, strategies and policies pertaining to the travel & tourism sectors.
Nkani’s in-depth knowledge and understanding of South Africa’s stunning landscape coupled with its destination packaging had paved the way for Dutch arrivals to South Africa exceeding targets for three consecutive years spanning 2003 to 2006.
In this interaction with Swapna Raghu Sanand, Neliswa Nkani told The Financial Express Online, “Attractive currency exchange rates and competitive pricing makes South Africa a lucrative, value for money, long haul destination. There are alluring options for both high end luxury planners and those on a budget.”
Furthermore, she highlighted South Africa’s internationally benchmarked bio-safety systems in place at all private game lodges and government-owned national parks as well as across accommodation facilities. Notably, travellers planning their trip to South Africa need to show a PCR test that is not older than 72 hours from the time of departure from the country of origin to South Africa.
What makes South Africa a must-visit destination for Indians from a travel and hospitality perspective?
The Rainbow Nation of South Africa – with its 3000+ unique adventure offerings, captivating wildlife, beautiful golden coastal beaches, vibrant nightlife, diverse culture, warm hospitality, rich heritage and culinary treats, promises travellers an immersive, memorable experience at every turn.
The destination has a plethora of world-class facilities, excellent infrastructure and distinctive attractions, along with internationally benchmarked health & safety standards; it also has surroundings that naturally promote social distancing – this makes it appealing to leisure, business & MICE travellers.
Attractive currency exchange rates and competitive pricing makes South Africa a lucrative, value for money long-haul destination. There are alluring experience options for both – the high-end luxury planner and those on a budget.
South Africa also offers a gamut of sustainable product offerings and ecotourism experiences, like cycling tours, nature safaris, conservation projects and rural experiences, along with some of the most beautiful self-drive routes in the world.
For travellers seeking offbeat destinations with good connectivity and a large number of activities within confined areas, the destination has opened up and heavily invested in their picturesque new regions, including the stunning and relatively unexplored Port Elizabeth, Robertson, West Coast, Drakensberg and Panorama Route.
What are the recent initiatives taken by South Africa to revive global tourism and measures to ensure safety protocols are not compromised?
In South Africa, we remain committed to the safety and health of our visitors.
There are internationally benchmarked bio-safety systems spanning all private game lodges, government-owned national parks, shopping hubs, restaurants and accommodation facilities. These safety initiatives include fewer number of tourists in a safari vehicle to promote social distancing, digital menus, touchless parking, e-payment systems, hand-sanitization and disinfection stations, individually sanitized and packed takeaways / room service etc.
Travellers can also expect precautionary and sanitation measures at various other transit touch points including international and domestic airports, and car rentals.
What category of global travellers (leisure, adventure, wildlife, corporate, business) are you expecting as you strategize on packages for tourists’ needs?
Experience-seeking millennials, HNIs and the family-oriented middle-class segments are anticipated to be the driving force behind leisure travel recovery, while MICE travel can be expected to recover early next year albeit with smaller group sizes. These travellers are now actively seeking safety assurance and good deals – and the competitive pricing edge that South Africa has over most other long-haul international destinations, will go a long way in aiding travel conversions.
We are aware of the effect the pandemic has on the global economy, and have been repackaging accordingly, with the intent to offer consumers’ excellent deals and discounts. Safety measures are transparent and well-communicated, and have been factored into overall packages, so that there is no surprise or extra-cost to travellers.
For Indian travellers, which are the must-visit South African tourist destinations that you recommend?
We are looking at introducing newer, customized experiences, products and itineraries for the rising FIT traveller segment. We anticipate that South Africa’s new regions and geographies will be a hit with Indian travellers post-Covid.
For the next couple of months, travellers can enter through cities that have restored international connectivity, so either through the Mother City – Cape Town, Johannesburg or Durban, and use these cities as a gateway to the rest of these picturesque new regions, including the stunning and relatively unexplored Port Elizabeth, Robertson, West Coast, Drakensberg in KwaZulu-Natal, Panorama Route (Mpumalanga) and Garden Route.
Are all national parks open for global tourists and what checks are currently being done?
All national parks are open for international and domestic tourists.
The South African safari is an adventure in itself, and has always been immensely popular with tourists from across the globe. Now the appeal of a safari holiday has increased given its natural ability to enable social distancing. Concrete jungles offer complete seclusion, fresh air, and the beauty of the wilderness bring forth a perfect social distancing experience. Travel consultants are now helping couples, families and small groups plan private and safe vacations to luxury game lodges.
With the natural world as its stage, the essence of a safari has not changed. However, guests will experience enhanced sanitization policies, regular temperature checks for guests and staff, smaller camps and smaller game drive groups to ensure social distancing is maintained even in the safari vehicle. | Neliswa Nkani is a 20 plus year industry veteran with over three years of dedicated experience with south african tourism. she highlighted South Africa’s internationally benchmarked bio-safety systems in place at all private game lodges and government-owned national parks. the destination has a plethora of world-class facilities, excellent infrastructure and distinctive attractions. | Positive |
https://www.moneycontrol.com/news/technology/auto/royal-enfield-to-set-up-assembly-unit-in-argentina-its-first-outside-of-india-5820461.html | Representative image
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Royal Enfield, the niche motorcycle brand of Eicher Motors, said it will commence local assembly of motorcycles in Argentina in partnership with Grupo Simpa, a local distributor in the country since 2018.
This is the first time in Royal Enfield’s modern history that motorcycles will be assembled and produced outside the company’s manufacturing facilities in Chennai.
This development comes as a surprise since Thailand was set to host the first assembly plant of Royal Enfield outside India in mid-2019. The company had also spoken about having a completely knocked down plant in Vietnam too.
Royal Enfield set up retail operations in Argentina in March 2018, with its first store in Vicente Lopez, Buenos Aires. Since then the company has expanded its retail network in the market and now has five exclusive stores in that country. Overall, Royal Enfield has 31 exclusive stores and 40 other retail touch points in all of Latin American countries.
The local assembly unit in Argentina will be based at Grupo Simpa’s facility located in Campana, Buenos Aires. To begin with, the plant will locally assemble three motorcycle models - the Royal Enfield Himalayan, the Interceptor 650 and the Continental GT 650 - starting this month.
Vinod K Dasari, CEO, Royal Enfield, said, “Over the last couple of years, we have grown our international presence significantly and now have retail presence across 60 countries. With a strategic view to cater to growing demand and to gain significant market advantage, we have been pursuing our plans to set up local assembly units across specific markets in the Asia Pacific region and across South America."
Brazil, Argentina and Colombia are among the three most important markets for Royal Enfield in Latin America. Outside of India Royal Enfield 660 dealerships and 82 exclusive brand stores in cities such as Milwaukee, London, Paris, Madrid, Barcelona, Melbourne, Sao Paulo, Bogota, Medellin, Mexico City, Buenos Aires, Dubai, Bangkok, Jakarta, Manila and Ho Chi Minh City. | the company will begin local assembly of motorcycles in Buenos Aires. this is the first time motorcycles will be assembled outside the company’s manufacturing facilities in Chennai. Thailand was set to host the first assembly plant of Royal Enfield outside India in mid-2019. the company has 31 exclusive stores and 40 other retail touch points in all of Latin American countries. | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/sun-group-vista-spaces-ink-pact-to-set-up-investment-platform-for-realty/articleshow/66860614.cms | Apple Rings Louder: Sept Qtr Sees Record Revenue in India Apple Inc set a new quarterly revenue record in India with a strong double-digit year-on-year growth in the September quarter, chief executive Tim Cook said on Friday, adding that the world’s second-largest smartphone market is a key focus for the Cupertino, US-based company where it currently has a low share.
Young & Restless Driving Change at Motown’s Luxe St Luxury car buyers in India are getting younger with two out of five Audi buyers aged less than 40. At Mercedes-Benz India, buyers have an average age of 38 years, the youngest for the German luxury carmaker globally. The scenario is similar at BMW India where consumers aged 35-40 contribute bulk of the sales. | apple set a new quarterly revenue record in india with a strong double-digit year-on-year growth in the September quarter. the world's second-largest smartphone market is a key focus for the cupertino, us-based company where it currently has a low share. luxury car buyers in india are getting younger with two out of five Audi buyers aged less than 40. | Positive |
http://www.moneycontrol.com/news/business/markets/very-positive-on-india-believe-india-will-surpass-china-in-its-pace-of-growth-mark-mobius-2511113.html | In an interview with CNBC-TV18 Mark Mobius, Former Executive Chairman of Templeton Emerging Markets Group spoke about his reading of the market and his outlook.
We are very positive about India. We think India is now at the take-off stage and will probably surpass China in terms of growth going forward, he said.
Below is the verbatim transcript of the interview.
Q: How much are you going to invest in this Equanimity investments and what will be your role in that fund?
A: Equanimity is doing a very interesting private equity investing focusing on new innovations, new technology and their fund has just started and I have invested in the fund, small amount, my own money and I think they are going to be doing a terrific job -- I was associated with Rajesh Sehgal for quite a long time. We are working together in Franklin Templeton, so my interest is very great.
On the other side, I am interested in India on a portfolio management side because I am starting a new company in London with expressed purpose of investing in emerging markets and the focus will be on ESG – environmental, social and governance aspects. So I am now interviewing various research organisations here in India who might be able to help us in our effort and we hope to be able to launch something by the middle of the year.
Q: This is very interesting. Tell us both then – how much are you putting in Equanimity, your own money and how much is the other fund – your emerging markets fund going to have by way of a corpus?
A: I cannot give you the exact amount, that is confidential but it is reasonably significant in the context of what he is doing and his emphasis of course is not necessarily ESG. His emphasis is on technology, rural market technology, that is what I think. In our case, in the company that I am starting in London, the emphasis will be on ESGN activist ‘Impact Investing’.
Q: For your own fund, in London, do you have any corpus in mind?
A: Eventually it will be hundreds of millions of dollars, when we are starting of course we will probably start with roughly USD 100 million but then will grow from there.
Q: 100 million is your fund, at what stage are you in this fund, have you already registered with the authorities in London, is all the legal stuff done with Securities and Exchange Board of India (SEBI) as well, are you good to go?
A: We are in the process right now and we are starting to recruit people but it is going to take time. These licenses take quite a long time.
Q: Let me come to this fund of yours in London, what do you mean when you say ESG, environment, social and governance means what in stock terms?
A: What I wanted to emphasise here is not necessarily companies that already have achieved good environmental practices or good social practices or good governance practices. We are interested in companies that have not achieved those yet but have the potential to improve. So that is where the Impact aspect of what we are doing comes in. So it can be any number of companies as you know, they are many companies in emerging markets, in frontier markets that need big improvements in these areas. So that is the emphasis.
Q: I get your point but when you say environment, we probably understand it or say a wind company or a solar company but what do you mean by social, what do you mean by governance stocks? We understand fast moving consumer goods (FMCG) and sectors like that, how should we understand social or governance in the form of stocks?
A: Let me give you a very specific example. There is a company in China that imports waste paper from the United States, waste cartons and converts them into new cartons. There is an example of where they are helping the environment by reusing waste that normally would be burnt or put in waste stores, so that is an example.
The next thing is we look at a company like this and say okay, what kind of social impact that they are having, how they are treating their own workers and we went to this company and we saw that they were doing a pretty good job in cleanliness of the plant, making something using waste paper is a very dirty business but they were very careful in showing that the plant was clean and the workers were protected from any fumes and so on. That would be the social aspect of what we are talking about.
Of course, the governance comes in when – are they open to us, are they willing to talk to us about the company, do they listen to minority shareholders, do they have equal rights for all shares, that sort of things.
When we talk about social, it could cover any multitude of areas. It could involve the employees of the company but it also could involve the people they are serving.
Q: Will this be listed stocks or will it be unlisted stocks that you will be looking at?
A: In the case of the Equanimity, they are looking at unlisted. This is private equity. In the case of the company that I am starting in London, this would be listed companies initially.
Q: Now about the current situation in the market, how do you feel about the Indian markets? We have lost about 8 percent in the past month from the recent all-time highs, does it look like we may lose more?
A: Yes, I think it is possible to have more correction. You must remember that not only India but the US market and many other markets around the world particularly the developed markets in Europe and the US have reached high points. On a historical basis, there is a reason to believe that you are going to have corrections from these very high levels that we are seeing now.
So, talking to investors, I tell them, look, keep some dry powder, keep some cash available for the opportunity when the markets correct and come down. The interesting thing about the developments now is that with the US dollar getting weaker, emerging markets are looking pretty good but of course, they would be affected if there is this significant downturn.
Q: I was going to ask you about global markets just as well. In 2018, do you see higher inflation and higher yields and will that have a big impact on equity markets?
A: If there is higher inflation, that would be very good for equities particularly if interest rates don’t catch up. So you have a negative real rate. This generally will be good for equities. So we have to watch that space carefully. There is no question – interest rates are going up. The Fed is definitely going to want to raise interest rates particularly if the unemployment situation improves in America, so you have that aspect.
On the other side, of course, weaker dollar changes the picture as well. That may attract money coming into the US but more likely money will be quite cautious in the face of a weaker dollar, which will be good for other markets including emerging markets.
Q: Let me come to Indian banks, they are going through a terribly rough patch. Already for the past several quarters, they have been declaring larger and larger non-performing assets (NPAs) or bad loans and now there is this near USD 2 billion fraud in Punjab National Bank (PNB), your thoughts?
A: This is quite an amazing situation with PNB but you must remember, it is prevalent globally. You have fraud in every direction, in banks around the world and it is just not in India, it is not just in China, it is not just in the US, it is happening globally despite all the regulatory efforts, you do have these cases.
But it comes down to confidence at the end of the day, if you take the case of PNB, the Indian government is going to step in and say, look, we will not allow this bank to get into trouble and we will work something out at the end of the day. So I am not that worried about it because we have realised that these things do happen. The good news is the fact that it did come up, that was revealed means that all the banks will be ultra-careful to look at their systems because definitely, there have been faulty systems, that something like this can happen.
Q: I am glad you are looking at it positively but how are you looking at the Indian markets 12-18 months down the line because there are going to be a spate of elections from now to then?
A: We will be watching that very carefully because the degree to which the reforms that Prime Minister (PM) Narendra Modi is implementing and has implemented, if there is any pullback, any step backwards, that would be a bad news. I don’t think that will happen. I believe that the benefits that the reforms already implemented, have had on the society as a whole, will be reinforcing the need for more such reforms. So we are very positive about India. We think India is now at the take-off stage and will probably surpass China in terms of growth going forward.
Q: What looks attractive to you in India right now?
A: I would start with the banks. The fact that you had this situation with the banks – the banks are going to continue to survive and thrive and I would focus on those banks that are improving their digital offering because there are incredible improvements being made in the digital side and the government’s efforts by the way is the one government we formed has been very beneficial in setting up this payments system on a national basis is going to be incredible boost for banks who – and this is the big who – will be able to utilise that advantage. So very important.
Q: Which sectors other than banks, next to the banks?
A: Next to the banks - I would have to say we are looking at this medium-size companies that are entering into new services, new consumer services, new industrial services in every direction. I have been meeting with the number of companies that are very interesting and are doing very specific services for industry and the consumer. For example, companies are working on new technology on two-wheelers, that sort of thing is very interesting.
Q: I would assume, you mean the electric vehicles. I thought you would mention sectors like insurance, many of those stocks have done well and more are going to list, you like them?
A: Of course, again those insurance companies that are able to utilise the digital world are going to be in a much better shape and the advantages are tremendous. The thing that is hitting these insurance companies now in terms of more efficiency and those survivors will be the ones that are able to utilise the digital world and in offering services and also in gathering clients. | former executive chairman of Templeton Emerging Markets Group spoke about his reading of the market and his outlook. he said: 'we think India is now at the take-off stage and will probably surpass China in terms of growth going forward'. 'i am now interviewing various research organisations here in India who might be able to help us in our effort' | Positive |
https://www.moneycontrol.com/news/business/buy-bajaj-finserv-target-rs-6095-dharmesh-shah-2547327.html | live bse live
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By Dharmesh ShahICICIdirect.com Research
The Nifty50 during the previous week traded with positive bias and has maintained higher high and higher low in the weekly chart. In the process, it registered a resolute breakout above the falling channel containing the entire corrective price action since mid-February 2018 signalling a reversal of the corrective trend and resumption of the positive momentum.
The current pullback is larger in magnitude compared to the previous two pullback signalling sign of improving market structure.
We expect the index to head towards 10,480 regions which were the high of mid-March 2018. We expect focus will now shift to stock specific action as we enter into Q4 earning season; however, broader markets to extend relative outperformance while index remains in consolidation mode.
In the past two weeks, the index has rallied almost 475 points from the March low (9,952), leading the stochastic oscillator to trade in the overbought zone (currently at 90), indicating that the possibility of a breather at higher levels cannot be ruled out.
Thus, a close below Wednesday’s low of 10,355 would lead to pause in an ongoing uptrend. This may lead the index to enter a consolidation phase to cool off overbought conditions.
However, overall bias in the index remains positive hence, any breather towards 10,200 should be used as an incremental buying opportunity.
Bajaj Finserv: BUY | CMP: Rs 5420| Target: Rs 6095| Stop loss: Rs 5190 | Return: 12%| Time frame: 6 months
Bajaj Finserv after registering life high of Rs 5790 during September 2017, has entered a secondary corrective phase as it discounted excesses built in the previous rally and factored in concerns over rising bond yields etc.
In the current week, the share price resolved out of past six month’s basing pattern, signalling the end of the corrective phase and commencement of fresh up leg, thus providing fresh entry opportunity.
The price decline from a lifetime high and subsequent consolidation phase over the past six months fulfill all properties of a corrective pattern within a primary uptrend as it retraced the preceding four-month rally just by 50 percent over seven months indicating robustness in the price structure
Significantly, the consolidation over past six months anchored at the key support of Rs 4800 as it is the confluence of:
a) 50 percent retracement of the previous up move (Rs 3801-5790)
b) The long-term rising 52 weeks EMA, which has been held since CY 2013
The stock has immediate support at Rs 5200 as it is the 61.8 percent retracement of the most recent rally.
We expect the stock to resume uptrend after the current consolidation breakout and head towards Rs 6100 in the medium term as it is the confluence of the breakout implication (Rs 5450-4800= Rs 650 points added to breakout of Rs 5450) and 123.6 percent external retracement of September 2017 – February 2018 decline (Rs 5790-4500) placed at Rs 6095.
Disclaimer: The author is Head Technical, AVP at ICICI Direct.com Research. The views and investment tips expressed by investment experts on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | the Nifty50 during the previous week traded with positive bias and has maintained higher high and higher low in the weekly chart. the current pullback is larger in magnitude compared to the previous two pullback signalling sign of improving market structure. we expect the index to head towards 10,480 regions which were the high of mid-March 2018. in the past two weeks, the index has rallied almost 475 points from the march low (9,952), leading the stochastic oscillator to trade in the overbought zone | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/sensex36k-analysts-say-scrips-at-inflection-points-can-make-money/articleshow/62618286.cms | The sense of euphoria in the market is hard to miss, with benchmarks Sensex and Nifty racing past key milestones of 36,000 and 11,000 for the first time on Tuesday.The reasons are not far to seek. Optimism over the ongoing quarterly earnings, political stability as well as robust liquidity are the primary drivers for the current leg of the rally. To put it in perspective, a total of Rs 6,222 crore were collected by way of SIP in December 2017 as against Rs 3,122 crore in April 2016, almost doubling in 21 months.Market experts are of the view that there is more steam left in the ongoing rally and large cap stocks may deliver better returns than mid caps this year.Deven Choksey, MD, KR Choksey Investment Managers, advises investors to zero in on individual stocks rather than the index.“This market is giving lots of opportunity at least on selective basis. Investors should have to keep an eye on those opportunities vis-à-vis the index. 2018 could be the year in which you would see some of the large cap companies participating (in the party) far bigger than mid cap companies. One should keep an eye on the individual stocks where the earning opportunity could be even better,” he said in a chat with ET Now.Ace stock picker Porinju Veliyath is equally optimistic on India growth story.During an interaction with ET Now, he said, “I am not really surprised when the Nifty touches 11,000 or maybe, 12,000 after sometime. This is just the natural sequence of events happening in our country something differently since we got independence 70 years ago. We are into a very different kind of growth orbit as an economy and as a nation.”Porinju added that small investors should look at those underperformers that are yet to move.“Smart investors should look for the next set of companies which are still at an inflection point, even Indian Hotels kind of stocks. Indian Hotels was mismanaged by the Tatas for the last 20 years, otherwise it would have been already three-four times of current market value. So, if it is better managed by the new management or whoever, this company can still double from here in the next three-four years time. I am not holding the stock,” he added.For those who are planning to enter the markets at present levels, Sandeep Bhatia, Head of Equity at Macquarie Securities Group, said, “We still are in the first half of this bull market and earnings momentum has just started.”“We will actually see that the earnings momentum accelerates through this year. Public sector banks are clearly a place where there is still value. We have liked ICICI Bank for a long time, so we continue to like that but there is value in some of the other banks, too. This is clearly one sector where there is value and there is the entire engineering capital goods sector which has been sort of the questionmark sector. We like L&T there, too.” Bhatia said in a chat with ET Now.Shankar Sharma of First Global in a tweet on Monday said, “Emerging markets in dollar terms are still 10 per cent away from 2008 highs! With a weakening dollar and strengthening commodities, I expect EMs to take out 2008 dollar high easily and then march on to greater highs. Get set for a Super 2018! India will bask in reflected glory, too.”B Gopkumar, Executive Director and CEO, Reliance Securities, is positive on IT, private banks, consumer, select pharma and cement stocks. | Sensex and Nifty are racing past key milestones of 36,000 and 11,000. a total of Rs 6,222 crore were collected by way of SIP in December 2017. a political stability as well as robust liquidity are the primary drivers for the rally. large cap stocks may deliver better returns than mid caps this year. ace stock picker Porinju Veliyath is equally optimistic on India growth story. | Positive |
https://www.moneycontrol.com/news/business/markets/crude-palm-oil-rises-to-fresh-high-in-domestic-market-bulls-unlikely-to-take-a-breather-anytime-soon-4696711.html | FILE PHOTO: Indonesian worker Abdul Rahim Gani, 32, carries oil palm fruits at Felda Bukit Cerakah in district of Klang outside Kuala Lumpur April 16, 2014. REUTERS/Samsul Said/File Photo - RC12E23F6A40
Ravindra Rao
Intraday on December 3, MCX crude palm oil (CPO) touched a fresh peak of Rs 685 per 10 kg. Being the largest palm oil importing nation, India derives its palm oil price value from its foreign counterpart, Bursa Malaysia Derivative (BMD).
Apart from being consumed as cooking oil, palm oil is also used as a key ingredient in FMCG products like cosmetics, ice cream, chocolate, toothpaste, lipstick etc. Since the second half of October, palm oil futures in Malaysia have surged by more than 20 percent.
Palm oil BMD CPO third month future contract has started its bull run after China and other African countries have shown readiness to ramp up their palm oil purchases from Malaysia, if palm oil prices slide further amid friction between Malaysian and India.
Market players are also optimistic over Indonesia's plans to increase their bio-fuel mandate from B20 to B30 by January 2020. Moreover, the Indonesian Prime Minister has also vowed to increase the mandate by over 50 percent in next one year (as per Financial Times news). Prospects of increased domestic consumption by Malaysia and Indonesia in coming months have primarily resulted in a sharp rally in palm oil in last few weeks.
Looking at the supply side, both largest palm oil producing countries (Indonesia and Malaysia) have registered a surprised decline in stocks for last month, which has added fuel in the rally of BMD CPO. Due to lower production prospects in both countries, adverse climate and ageing trees, palm oil inventories are likely to decline in 2020 season.
In line with Malaysian Palm oil futures, MCX CPO first month futures have also gained over 20 percent since second half of October. Apart from the international factors one major domestic factor which has lifted edible oil prices in domestic market is the drop in soybean production.
Indian soybean production, which crossed 105 lakh tonne last season, is likely to drop below 80 lakh tonne (as per market expectation) following untimely rains and flood like situation in key Soybean producing states like Madhya Pradesh and Maharashtra. As result, edible oil prices (soy oil, CPO, mustard oil), have been swiftly rising in domestic spot markets.
To conclude, although palm oil prices are unlikely to show a sharp reversal in near future on back of strong edible oil prices in international market and prospects of a lower soybean crop in domestic market, a correction in price can’t be ruled out as the prices appear overstretched.
(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. | MCX crude palm oil (CPO) touched a fresh peak of Rs 685 per 10 kg. palm oil futures in Malaysia have surged by more than 20 percent since the second half of October. both largest palm oil producing countries (Indonesia and Malaysia) have registered a surprised decline in stocks for last month. despite lower production prospects in both countries, adverse climate and ageing trees, palm oil inventories are likely to decline in 2020 season. | Positive |
https://www.financialexpress.com/economy/economic-boom-in-india-coming-soon-massive-number-of-consumers-eligible-for-credit-heres-what-it-means/1175548/ | Signalling that a major economic boom in India may be in the offing, a latest study estimates that nearly 150 million consumers who are currently not ‘credit active’ are potentially eligible to become retail credit borrowers. Tapping into this untapped huge potential borrower market could provide significant growth opportunities for retail lenders and provide a major boost to the Indian economy, a TransUnion CIBIL study said.
According to the report, the total population of credit-eligible consumers in India is roughly 220 million, out of which only about one-third—72 million—are currently ‘credit-active’, or have a live account with a bank or lending institution. The remaining population, a whopping 150 million are not currently credit active, but would meet the age and income requirements that would make them potentially attractive to lenders, said the report. Notably, this group includes two set of consumers, the first, who were previously credit active but are currently dormant, and second, those who have never availed a retail loan or credit card.
Watch video: An economic boom just around the corner? What credit data shows
The retail lending market could see a major boom with the addition of these incremental growth opportunities for credit products such as credit cards, personal loans and consumer durable loans, the report noted.
“After significant growth in retail lending over the past decade, many lenders and industry observers have asked whether the retail credit market is nearing the saturation point and could soon face a slowdown. Our study paints a much brighter picture for the industry,” Yogendra Singh, Vice President of Research and Consulting for TransUnion CIBIL said. According to the expert, this untapped market presents an opportunity for sustained, prudent growth for lenders over the next five years and beyond. “Lenders need to find ways to reach this untapped market, which likely has credit needs that are not being met currently,” he observed.
The TransUnion CIBIL study calculated that approximately 220 million consumers meet the target age range—from 20 to 69—and minimum income level, which is assumed as at least Rs 250,000 per year, to be attractive to lenders for retail credit products. “This addressable market size is forecast to continue to grow at a rapid pace, as more consumers enter the target age range and economic growth raises income levels.
The study forecasts that the addressable market will increase by 14-16 million consumers per year, reaching an estimated 295 million by the end of 2022,” the report said. According to Singh, as more consumers reach adult age and have disposable income, they will increasingly seek credit to help finance purchases of housing, vehicles, and household goods. “As well, in an increasingly digital marketplace, they will want credit cards to help facilitate online transactions. These developments bode well for continued robust growth in the retail lending market,” continued Singh.
Apart from a robust economic boom due to potential eligible borrowers, the study finds that household debt levels in India as a percentage of national income are modest in comparison to other emerging countries such as China, Brazil and South Africa. If India follows the growth trajectories of other countries, total household debt could increase from Rs 37 trillion at the end of 2017 to between Rs 78 – 94 trillion by the end of 2022, noted the report. This supports the conclusion that Indian households will have additional borrowing capacity and could continue to finance growing consumption levels. | 150 million consumers who are not currently credit active are potentially eligible to become retail credit borrowers. the remaining population, a whopping 150 million are not currently credit active, but would meet age and income requirements. the retail lending market could see a major boom with the addition of these incremental growth opportunities for credit products. approximately 220 million consumers meet the target age range—from 20 to 69—and minimum income level, which is assumed as at least Rs 250,000 per year. | Positive |
https://economictimes.indiatimes.com/news/economy/infrastructure/us-financial-body-to-invest-usd-54-mn-in-india-to-support-critical-infrastructure-projects/articleshow/79913296.cms | WASHINGTON: An American financial corporation has announced to invest USD 54 million in India to support the development of critical infrastructure projects in the country in the wake of the COVID-19 pandemic.India is one of the fastest growing countries in the previous three decades, but it suffers from a significant infrastructure deficit, holding back further growth for the country especially in the wake of COVID-19, the US International Development Finance Corporation DFC ) said on Tuesday.The DFC said it will invest USD 54 million in equity for the National Investment and Infrastructure Fund (NIIF) in India to support the development of critical infrastructure projects. The financing is part of NIIF's final round of fund-raising for the fund.NIIF will work to mobilise capital to support economic growth and address critical development challenges in the country, according to a statement."DFC's investment will support the growth and development of a key partner in the Indo-Pacific and allow DFC to facilitate investment in strategic infrastructure projects throughout India,” said DFC CEO Adam Boehler.“DFC brings its commitment to high standards in all of our projects, and we are excited to establish this partnership with NIIF. We are pleased to announce that NIIF has completed fund raising for its Master Fund,” said NIIF CEO Sujoy Bose.“We are delighted that DFC is investing in this final round. Their investment will strengthen infrastructure investment across India. We are excited at all that DFC brings to the table, including its high standards such as the Blue Dot Network and commitment to best practices with respect to transparency and management of environmental and social risks,” he said.DFC said its investment will help NIIF invest in infrastructure projects that are important for the long-term sustainable growth of the Indian economy , supporting development and the US foreign policy. | the investment is part of NIIF's final round of fund-raising for the fund. the investment will help NIIF invest in infrastructure projects that are important for the long-term sustainable growth of the Indian economy. the NIIF Master Fund has completed fund raising for its Master Fund. the NIIF is a key partner in the Indo-Pacific. | 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.moneycontrol.com/news/business/coronavirus-impact-investors-cosy-up-to-danish-stocks-5663921.html | Denmark is enjoying one of the best-performing stock markets in the world this year. Recession-proof businesses and a strong safety net equal big gains. (Paige Vickers/The New York Times)
Matt Phillips
Denmark is a place of hygge, happiness and — in the face of a global downturn — a high-performing stock market.
The tiny and trade-dependent northern European nation’s stock indexes are easily beating out the S&P 500, which is up slightly for the year, and Japan’s Nikkei 225 and the Stoxx Europe 600 index, which are both in negative territory.
The Danish indexes, such as the OMX Copenhagen 25, are up more than 15% in 2020, or more than 21% if you calculate its return in dollar terms. That’s within spitting distance of other market bright spots, like the tech-heavy Nasdaq Composite, which has climbed about 23% on the strength of lockdown-friendly companies like Amazon and Apple.
What accounts for such a stellar performance? Experts say it’s a combination of several factors: an effective response to the coronavirus crisis (assisted by the country’s robust social safety net), a collection of companies well positioned to weather the crisis and a knack for well-balanced management.
The main contributor to the Danish stocks’ performance is a matter of what the companies do rather than where they do it: Roughly 50% of the market capitalization of Danish stocks is in almost recession-proof health care and pharmaceutical companies — a solid portfolio in the midst of a pandemic.
“The mix of the Danish market is completely different than you see in the global market, and there you have, sort of, the explanation for why has the Danish market performed so much better,” said Carsten Jantzen Leth, head of Danish Equities at Nordea Asset Management.
Share prices have soared for large Danish health companies such as Coloplast — a major player in the market for colostomy pouches, continence, and skin and wound care treatments — and Genmab, a biotech company specializing in cancer treatments. Investors looking for safety have helped drive Coloplast up more than 25% and Genmab more than 50% for the year.
But towering above them all is Novo Nordisk.
Worth roughly $150 billion, the Bagsvaerd-based company by itself accounts for roughly 15% of the market capitalization of the OMX Copenhagen 25 index, which is owned by Nasdaq Global Indexes. It’s one of the dominant suppliers in the world market for insulin and diabetes treatments, a business that is well insulated from the ups and downs of the global economy.
“If people need insulin, they need it whether there’s a recession or not,” said Henrik Drusebjerg, global chief strategist at Danske Bank, the largest Danish bank.
While profit expectations for the wider Stoxx Europe 600 index have collapsed by more than 35%, analysts covering Novo Nordisk expect profits to be up about 8% in 2020, even during the worst global downturn since the Great Depression. Its shares are up about 5% this year.
Much of Danish companies’ business — about 20% — comes from the pandemic-plagued United States, but a significant portion also comes from within the country’s borders. And the country’s efforts to flatten the curve and resume economic activity have also helped stock prices.
“It was evidently clear that Denmark had got on top of the virus quickly,” said David Oxley, an economist focusing on Nordic economies at Capital Economics, a research consultancy in London. “They were one of the first to shut down and one of the first to reopen.”
Denmark has a generous unemployment system in normal times but took additional measures in response to the pandemic. Under a short-term relief program, the government picked up the tab if an employer cut a worker’s hours. Only at the end of June did the government start the clock on its normal unemployment benefits, which pay about 90% of a worker’s salary for up to a year — meaning jobless workers can count on significant support through the middle of 2021, Oxley said.
The pandemic did have an effect, of course. Unemployment spiked to 5.6% in May after hovering at 3.7% in February, and gross domestic product fell 2% in the first quarter, the worst decline in more than a decade. But in both metrics, the changes were mere blips compared with other developed nations.
And then there is something harder to quantify — the ability of Danish management teams to find a middle path through challenging times.
Ivy International Core Equity Fund, seeing the structural advantages of Novo Nordisk, established a more than $30 million position in the stock in June, when it bought over 500,000 shares. And it held on to shares it owned of A.P. Moller Maersk, the Danish shipping giant hit hard by the sharp downturn in global trade.
“It’s rare for us to have two names there,” in Denmark, said John C. Maxwell, a portfolio manager on the fund. “It’s a heavy weight for us relative to normal.”
Maxwell and his co-managers believe both companies are solid long-term bets — even if Maersk is off roughly 9% this year. (It was down more than 47% in late March.)
That’s partly because Maersk, like Novo Nordisk, holds a commanding position in its core market. Even though freight volumes are expected to fall as much as 18% in the second quarter, Maersk’s profits are expected to be roughly flat compared with last year, according to analysts.
That is a credit to the talent of Nordic executive teams to operate cyclical businesses at a steady, profitable pace, said Maxwell, who has managed the international stock fund for 14 years.
In his experience, he said, different countries can have different approaches to management. German executives can be a bit too slow to produce results, while U.S. and British firms can be a bit too focused on short-term gains at the expense of long-term strategy.
But Danish and other Nordic companies seem to have figured out a way to blend the two approaches.
“They just generally have a nice tempo about how they run the business,” he said, “trying to hit the quarters, but not sacrificing the long term to do so.”
c.2020 The New York Times Company | tiny northern european nation's stock indexes are easily beating out the S&P 500. tech-heavy Nasdaq Composite has climbed about 23% on strength of lockdown-friendly companies like Amazon and Apple. Roughly 50% of the market capitalization of Danish stocks is in almost recession-proof health care and pharmaceutical companies. investors looking for safety have helped drive coloplast and Genmab up more than 50% for the year. | Positive |
https://www.businesstoday.in/technology/xiaomis-new-30000mah-mi-power-bank-3-can-charge-iphone-se-10-times/story/406815.html | Xiaomi's ever-growing product portfolio now includes its biggest power bank yet. The company has launched the Mi Power Bank 3 with a massive 30,000mAh battery capacity, enough to charge the latest iPhone SE more than 10 times and its own flagship Mi 10 about 5 times. The latest power bank from Xiaomi is a big upgrade over Power Bank 2 and comes in a rock-solid design. It has been launched in China for now, but Xiaomi may bring its latest power bank to other markets, including India.
Xiaomi Mi Power Bank 3 Price
The Xiaomi Mi Power Bank 3 comes at a price of CNY 170, which translates to approximately Rs 1,800. If the company decides to bring the Power Bank 3 to the Indian market, the pricing of Rs 1,800 could be quite attractive. Recently, Xiaomi-rival Realme launched its new power banks in China, which are now expected to launch in India.
In China, the Mi Power Bank 3 goes on sale via JD.com starting June 18.
Xiaomi Mi Power Bank 3 Design, Features
The build quality of the Mi Power Bank 3 is seemingly robust. It is a rectangular slab with one too many ports on one side. The power bank has two USB-A ports, one USB-C port, and one Micro-USB port. The USB-A and USB-C ports are rated to deliver the 18W fast charging to the connected smartphone, given it also supports the same charging rate. Most of Xiaomi's latest smartphones come with 18W fast charging or more. Meanwhile, the latest iPhone SE 2020 also has 18W fast charging.
Xiaomi has given the Mi Power Bank 3 a low-power mode for products such as smartwatches and wireless earbuds, which do not require a high voltage and are charged rather more quickly than smartphones. Most power banks have issues providing the required current to these gadgets. To enable the low-power mode on the Power Bank 3, the button given on the side needs to be pressed twice.
The Mi Power Bank 3 comes with 24W charging for itself using the USB-C port. There is a cable bundled with the power bank. However, when using a 30W Xiaomi charger, which will need to be procured from a smartphone, the battery pack will charge even faster. The USB-A port can charge the power bank at only up to 18W.
Xiaomi's latest power bank could sell like hotcakes in India, where people rely on power banks to charge their smartphones multiple times without needing to be around the main power source. | Xiaomi's latest power bank is a huge upgrade over Power Bank 2. the power bank has a massive 30,000mAh battery capacity. it can charge the latest iphone SE more than 10 times and its own flagship Mi 10 about 5 times. the power bank is expected to launch in india on june 18. Xiaomi is also expected to launch a power bank in the u.s. | Positive |
https://economictimes.indiatimes.com/blogs/author/ankita-pathak/ | ABOUT THE AUTHOR Ankita Pathak
Ankita Pathak a former student of Lady Shri Ram college and was a Commonwealth Scholar at University of Warwick for M.Sc Economics. She has been deploying her knowledge of macroeconomics in the Indian financial markets since her return. She is a macro and markets fanatic, looking to understand global and historic trends while also sharing her knowledge with the co-learners. Black Coffee with a non-fiction book is how her happiest free time looks like. Twitter: @ankitapathak_ Less | ankita pathak is a former student of Lady Shri Ram college and a Commonwealth Scholar at University of Warwick for M.Sc Economics. she has been deploying her knowledge of macroeconomics in the Indian financial markets since her return. she is a macro and markets fanatic, looking to understand global and historic trends while also sharing her knowledge with the co-learners. | Positive |
https://www.financialexpress.com/industry/banking-finance/paytm-credit-card-announcement-finance-technology-major-to-offer-rewards-and-cashback-on-every-transaction/2108938/ | In an effort to increase the penetration of credit systems in India, digital financial service provider Paytm said that it is working on building ‘Next Generation Credit Cards’, partnering with various card issuers. With the Paytm Credit Card, the company is aiming to transform the credit market by enabling ‘new to credit’ users to join the digital economy. Vijay Shekhar Sharma’s Paytm is the leading payments company that has repeatedly benefited from the increasing digital adoption in India. Paytm has an estimated customer base of 150-200 million and it plans to issue nearly 2 million credit cards in the next 12-18 months.
For the Paytm Credit Card, the firm is designing an innovative digital experience on its app allowing users to manage their overall spends and have full control over the card usage. “With this service, Paytm aims to give complete control to cardholders to manage their transactions in real-time. It will be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card and viewing outstanding credit-limit,” Paytm said in a release.
Other features of the Paytm Credit Card would include switching off contactless payments and international transactions. Paytm will also provide insurance protection against fraudulent transactions. Users would also get to analyse their spends using the Paytm Credit Card with a personalized spend analyzer. Paytm is working on designing the credit card in fashion that will not require customers to visit bank branches with the entire universe of offerings available on the Paytm application.
India’s credit card penetration stands at merely 3% compared 320% in developed markets such as the United States America. “In our country, credit cards are still considered a product for the affluent sections of the society and not everyone can avail of its benefits. At Paytm, our aim is to provide credit cards that benefit India’s aspiring youth and evolved professionals,” said Bhavesh Gupta, CEO – Paytm Lending. Gupta added that the Paytm Credit Cards aim to help customers lead a healthier financial life through managing and analysing the spends to make well-informed decisions. The digital financial services platform plans to capture at least 10% of the credit card market which it terms as ‘largely untapped’.
Continuing with its trend of cashback and reward model, the Paytm Credit card will also have a rewards program with assured cashback on every transaction. The points accrued by customers will have no expiry and users will also be able to utilize those for various payments in the Paytm ecosystem, Paytm said. | Paytm is aiming to transform the credit market by enabling ‘new to credit’ users to join the digital economy. the firm plans to issue nearly 2 million credit cards in the next 12-18 months. the credit card would be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention. | Positive |
https://www.financialexpress.com/lifestyle/travel-tourism/everything-you-need-to-know-to-visit-south-africa/2148062/ | Are you visiting South Africa for the first time? Or wondering is South Africa safe for tourists or what is the best time to visit South Africa? Look no further! An industry veteran of 20 plus years in the global tourism & hospitality arena with over three years of dedicated experience with South African Tourism, Neliswa Nkani, Hub Head – MEISEA, South African Tourism, has in-depth expertise of national government and local government positioning as well as familiarity with legislations, strategies and policies pertaining to the travel & tourism sectors.
Nkani’s in-depth knowledge and understanding of South Africa’s stunning landscape coupled with its destination packaging had paved the way for Dutch arrivals to South Africa exceeding targets for three consecutive years spanning 2003 to 2006.
In this interaction with Swapna Raghu Sanand, Neliswa Nkani told The Financial Express Online, “Attractive currency exchange rates and competitive pricing makes South Africa a lucrative, value for money, long haul destination. There are alluring options for both high end luxury planners and those on a budget.”
Furthermore, she highlighted South Africa’s internationally benchmarked bio-safety systems in place at all private game lodges and government-owned national parks as well as across accommodation facilities. Notably, travellers planning their trip to South Africa need to show a PCR test that is not older than 72 hours from the time of departure from the country of origin to South Africa.
What makes South Africa a must-visit destination for Indians from a travel and hospitality perspective?
The Rainbow Nation of South Africa – with its 3000+ unique adventure offerings, captivating wildlife, beautiful golden coastal beaches, vibrant nightlife, diverse culture, warm hospitality, rich heritage and culinary treats, promises travellers an immersive, memorable experience at every turn.
The destination has a plethora of world-class facilities, excellent infrastructure and distinctive attractions, along with internationally benchmarked health & safety standards; it also has surroundings that naturally promote social distancing – this makes it appealing to leisure, business & MICE travellers.
Attractive currency exchange rates and competitive pricing makes South Africa a lucrative, value for money long-haul destination. There are alluring experience options for both – the high-end luxury planner and those on a budget.
South Africa also offers a gamut of sustainable product offerings and ecotourism experiences, like cycling tours, nature safaris, conservation projects and rural experiences, along with some of the most beautiful self-drive routes in the world.
For travellers seeking offbeat destinations with good connectivity and a large number of activities within confined areas, the destination has opened up and heavily invested in their picturesque new regions, including the stunning and relatively unexplored Port Elizabeth, Robertson, West Coast, Drakensberg and Panorama Route.
What are the recent initiatives taken by South Africa to revive global tourism and measures to ensure safety protocols are not compromised?
In South Africa, we remain committed to the safety and health of our visitors.
There are internationally benchmarked bio-safety systems spanning all private game lodges, government-owned national parks, shopping hubs, restaurants and accommodation facilities. These safety initiatives include fewer number of tourists in a safari vehicle to promote social distancing, digital menus, touchless parking, e-payment systems, hand-sanitization and disinfection stations, individually sanitized and packed takeaways / room service etc.
Travellers can also expect precautionary and sanitation measures at various other transit touch points including international and domestic airports, and car rentals.
What category of global travellers (leisure, adventure, wildlife, corporate, business) are you expecting as you strategize on packages for tourists’ needs?
Experience-seeking millennials, HNIs and the family-oriented middle-class segments are anticipated to be the driving force behind leisure travel recovery, while MICE travel can be expected to recover early next year albeit with smaller group sizes. These travellers are now actively seeking safety assurance and good deals – and the competitive pricing edge that South Africa has over most other long-haul international destinations, will go a long way in aiding travel conversions.
We are aware of the effect the pandemic has on the global economy, and have been repackaging accordingly, with the intent to offer consumers’ excellent deals and discounts. Safety measures are transparent and well-communicated, and have been factored into overall packages, so that there is no surprise or extra-cost to travellers.
For Indian travellers, which are the must-visit South African tourist destinations that you recommend?
We are looking at introducing newer, customized experiences, products and itineraries for the rising FIT traveller segment. We anticipate that South Africa’s new regions and geographies will be a hit with Indian travellers post-Covid.
For the next couple of months, travellers can enter through cities that have restored international connectivity, so either through the Mother City – Cape Town, Johannesburg or Durban, and use these cities as a gateway to the rest of these picturesque new regions, including the stunning and relatively unexplored Port Elizabeth, Robertson, West Coast, Drakensberg in KwaZulu-Natal, Panorama Route (Mpumalanga) and Garden Route.
Are all national parks open for global tourists and what checks are currently being done?
All national parks are open for international and domestic tourists.
The South African safari is an adventure in itself, and has always been immensely popular with tourists from across the globe. Now the appeal of a safari holiday has increased given its natural ability to enable social distancing. Concrete jungles offer complete seclusion, fresh air, and the beauty of the wilderness bring forth a perfect social distancing experience. Travel consultants are now helping couples, families and small groups plan private and safe vacations to luxury game lodges.
With the natural world as its stage, the essence of a safari has not changed. However, guests will experience enhanced sanitization policies, regular temperature checks for guests and staff, smaller camps and smaller game drive groups to ensure social distancing is maintained even in the safari vehicle. | Neliswa Nkani is a 20 plus year industry veteran with over three years of dedicated experience with south african tourism. she highlighted South Africa’s internationally benchmarked bio-safety systems in place at all private game lodges and government-owned national parks. the destination has a plethora of world-class facilities, excellent infrastructure and distinctive attractions. | Positive |
https://www.financialexpress.com/industry/shell-companies-govt-formulates-new-rules-to-weed-out-firms/1515393/ | The Ministry of Corporate Affairs (MCA) has made it obligatory for companies incorporated before December 2017 to file a new form to disclose their particulars, including a fully functional registered office. Analysts said the new rule (25A) will not only strengthen corporate governance, but will also help weed out shell companies.
The concept of ACTIVE (Active Company Tagging Identities and Verification) to tag the company’s identity and its registered office is one feature under the new rule. Firms are required to file particulars in e-Form ACTIVE on or before April 25, 2019.
Companies, which have been struck off or are under the process of being stricken off or are under liquidation or dissolved, do not have to file the new form. Besides, any company that has not filed its financial statements or annual returns with the Registrar of Companies also cannot file this form. A senior government official said, “There have been instances where several companies were found to be operating from a single registered address or where the registered office showed no signs of a company operating. This will help government identify a company’s registered office. The MCA can also conduct random checks to ascertain whether the office exists and is operational.”
Nangia Advisors (Andersen Global) director Sandeep Jhunjhunwala said such steps strengthen the regulatory architecture and cleanses the system of unproductive shell companies. Although the changes in Companies Act 2013 burdens Indian corporations with newer compliances, in the long run, it will give the required impetus for desired growth of the economy.
“Now with the anticipated geo-tagging rules being notified for all companies incorporated before December 31, 2017, the requirement of putting the data of exact location such as latitude & longitude, photographs, etc of the registered office would help identify cases where one building houses multiple shell companies,” he said.
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In the last three-four years, a number of legislative amendments and regulatory measures have targeted shell companies, benami holdings, black money transactions and various means of tax evasion. Demonetisation and the subsequent digitisation, mandatory dematerialisation of shares and other reforms are surely opportunities to move towards a policy superstructure that is truly regulatory in nature, Jhunjhunwala explained. | the new rule (25A) will not only strengthen corporate governance, but will also help weed out shell companies. firms are required to file particulars in e-Form ACTIVE on or before April 25, 2019. companies that have been struck off or are under the process of being stricken off or are under liquidation or dissolved do not have to file the new form. | Positive |
https://www.businesstoday.in/current/economy-politics/india-inc-on-the-agenda-for-the-new-government/story/352779.html | Kiran Mazumdar-Shaw, Biocon's chairperson and managing director
Focus on agri-tech and leveraging the FPO model for agrarian transformation: If you look at India and its agrarian economy, I really believe that focusing on agri-tech is going to be very important. Technologies that are aimed at improving agricultural productivity, delivering value-added agriculture and focussed around the farm to market opportunities that ensure better realisation for the farmers. I personally believe that the farmer FPO (Farmer Producer Organisation) model should be hugely expanded with a large number of incentives for the FPOs because you need cooperative farming and within it the FPOs is the only successful model and encouraging that is a good way to ensure better realisation for the farmers. They could play a role in bringing about value-addition in agricultural produce.
Micro-entrepreneurship should be another area of focus especially for job creation. It has the biggest job-creating potential in rural India. A fund for micro-entrepreneurs could be created in rural areas and through this, there could be better monitoring also on how many micro-enterprises are getting created and in the process build a database in this space.
Increase R&D investments: For this, we need policies that incentivise CSR and corporate spending into R&D with much better tax breaks. One kind of tax breaks if a company invests in its own R&D and another kind of tax break if it invests by giving research grants to universities then it should get bigger tax breaks. We need to evolve and look at such kind of policies that can bring private sector money into public sector needs.
Gender equity is a huge issue and there is a need for focus on this. Consider this, in case a farmer has committed suicide, the moment the widow of the farmer claims ownership of the land that belonged to her husband, chances are she will be killed or ostracised or removed from the family because, the moment a man dies the male members of the family claim stake.
To boost private sector investment and for exports, the SEZ scheme should not face the sunset and should be continued. There is a need to provide additional tax breaks for investment with job creation.
Consumption: To boost consumption, GST has to be further rationalised and reduce it on many items. Or else, we end up only adding to the cost.
G V Prasad, co-chairman and CEO, Dr Reddy's:
Focus on the five basics: The government must strongly encourage business. Unless you create wealth it will not result in growth leading to job creation. You cannot get yourself out of poverty by just distributing money. There are a few basic things that every citizen needs and those should be the focus areas for any government. On health, the government should ideally take ownership for the health of its citizens. Apart from healthcare, people need a high quality of life, education, public infrastructure and jobs. The focus should be on creating jobs through sustainable businesses. Improve the quality of life of citizens by taking care of the environment. The environment today is all messed up and every major city in the country figures in the list of top most polluted cities of the world. The government should also invest in education.
Models: I am encouraged by the fact that for the first time the government is talking about healthcare. There are models all around the world - the NHS model of healthcare in the UK is one, the Nordic countries have very good systems. They have high tax rates but all the basic minimum needs of people are met with a very high quality of life. Even within our country, we have best-in-class examples like the Kerala literacy and healthcare, the Delhi Mohalla clinic is a great idea, Delhi has also improved its schools.
S Chandramohan, president and group CFO at the Chennai-headquartered Tractors and Farm Equipment Limited (TAFE) and the chairman of the Confederation of Indian Industry (CII), Tamil Nadu
Infrastructure building and employment creation
S Chandramohan, president and group CFO at the Chennai-headquartered Tractors and Farm Equipment Limited (TAFE) and the chairman of the Confederation of Indian Industry (CII), Tamil Nadu Council, speaking to Business Today on the condition that his views would be taken in his personal capacity and not representing his company of the CII, says, there are several measures that the new government could take to boost infrastructure in the country and also in the process create employment. "Other than raising funds through disinvestment in select public sector units - both profit-making and some that are financially stressed - and then spend on infrastructure creation, the government could also consider monetising some of the public land holdings. "India has large public land holdings - be it connected to ports, airports, railways or defence. Some of these could be monetised not to reduce the fiscal deficit but only for building infrastructure and in the process also create employment opportunities."
Second, he feels, for the private sector investment to take place there have to be some additional growth drivers. Key to this is raising the savings and getting it back from 30 per cent to 35 per cent and more. The government has also promised reduction of corporate tax but if the government is constrained and is unable to get the corporate tax down, then it still needs to give some incentive to the industry such as restoring and enhancing the weighted deduction on research and development apart from higher investment allowance for plant and machinery or any incentives linked to investment. "Weighted deduction of minimum 150 per cent on revenue towards research and development, which has already been reduced from 200 per cent should be continued beyond the present expiry date of March 2021. Our spend on R&D in this country is negligible and hence we should not allow this provision to lapse after March 2021." Also, "While the government has provided relief on additional employment, the conditions regarding restricting it to Rs 25,000 per month may be increased without limit (or at least significantly increase the limit) apart from increasing the 30 per cent deduction for three years on an additional employee cost over three years to a minimum 50 per cent over two years."
Chandramohan is also of the view that the "subsidy for any capital equipment including tractors and implements should be given directly to the farmers and purchase by the state governments directly should be stopped."
To boost exports and earn more foreign exchange, given that global trade scenario is becoming challenging with most countries having an inward growth focus and raising trade restrictions, there is need to leverage India's low cost of medical treatment compared to several other countries. Therefore, a medical or health tourism strategy with a long-term plan will help. This also has the scope for employment creation.
He feels no major policy thrust to boost private sector investment and on employment creation can be complete without looking at the textile industry. He sees a clear need to boost the textiles industry by creating world-class textile clusters, correcting duty anomalies. "At present, the synthetic textile sector suffers from the inverted duty of 18 per cent on fibre and 12 per cent on yarn and fabric. While there is a provision to claim the refund of inverted duty the process is quite time-consuming impacting the working capital. The anomaly needs to be addressed by reducing the duty to 5 per cent to bring revenue neutrality in line with cotton. Plus, electricity tax should be subsumed under GST."Apart from that facilitate technology tie-ups for polyester. "Buyers will not only follow once we create these but given that the textile sector is a major employment creating industry, it will lead to a lot of job creation. Also, it is a space that China is vacating and we could step in." He feels, by correcting the duty structures and with right incentives, the costs could be lowered for the textile units and that could compensate for the disadvantage they have vis-a-vis other developing countries like Bangladesh and Indian companies could build and invest in ventures within India. He says there could be tax incentives linked to additional employment creation and support the industry perhaps with employment subsidy or any of the measures that do not come under the WTO purview.
S. Sivakumar, Group Head - Agri and IT businesses, ITC
Three-pronged strategy that makes farming a lucrative enterprise
A three-pronged strategy aimed at promoting demand-driven production that is in tune with the changing patterns of food consumption; climate-resilient farming that takes into account the risks arising out of changing climate and depleting natural resources; and farmer-centric interventions given that a model of one scheme or one solution cannot serve the needs of all farmers, would all go a long way to ensure agriculture becomes a remunerative enterprise for farmers, says S Sivakumar, who leads the agribusiness and IT at ITC.
Detailing on each, he says,
On demand-driven production:
Promote the development of inclusive plate-to-farm value chains through public-private-producer partnerships by combining the strengths of all the stakeholders to support India's resource-poor but resourceful farmer.
Facilitate delivery of real-time information and personalised knowledge to the farmers by village-level agri services entrepreneurs. At an estimated requirement of 3 million such entrepreneurs to serve the 120 million farmers across the country, this would be the single largest skill-based-job creation launched by any government.
Support these new-age agri services entrepreneurs with digital platforms (both public and private) that use smart technologies to enable high-yielding, early-warning, waste-mitigating (through the Internet of Things, image recognition, predictive analytics etc) agriculture, and transform agri extension from the conventional paradigm of 'last mile of the scientist' to one of the 'first mile of the farmer'.
Create vegetable production zones in the vicinity of the top-100 towns of the country by setting up climate-controlled cultivation facilities and offering them on lease to trained rural youth.
Encourage food processing and crop-specific storage and handling systems for minimising post-harvest wastage.
Provide thrust to value-added exports of agri produce, through World Trade Organisation-compliant incentives to offset the high-cost infrastructure.
Reform APMC Act to offer freedom to farmers in selling their produce, as also to transform mandis into post-harvest-services organisations.
Deepen the commodity derivative markets to enable farmers to discover prices before planting the crops.
Set up national agri market intelligence system to monitor variables that impact crop prices and use data analytics to guide the planting decisions of the farmer.
Set aside the customs duties collected on import of agricultural products towards the corpus of price stabilisation fund to support farmers in times of a significant drop in domestic prices.
On Climate-Resilient Farming
Set up a national irrigation authority with a mandate to reach water to every farm on a mission mode. Prepare a blueprint covering both the supply side (appropriate method of water harvesting in different regions) and the consumption side (conservation through efficient pumps and micro-irrigation) aspects and a roadmap for the revitalisation of natural water bodies.
Develop an 'atlas of natural resources', mapping the current status and future scenarios of top soil and water resources across the country, for kicking off time-bound rejuvenation work, as also for sensitising the farmers on resource-use the intensity of their cropping decisions.
Strengthen crop insurance system for expeditious settlement of farmers' claims by making use of remote sensing and drone surveillance for loss assessments.
Promote integrated farming system consisting of polyculture, permaculture, bee-keeping, animal husbandry, agro-forestry, and renewable energy as a naturally-resilient method of farming.
Step up research and development work on indigenous varieties of seeds and breeds that are naturally tolerant to weather variations and moisture stress.
Set up community-owned-and-operated seed banks for multiplying high-quality seeds of open-pollinated varieties of crops to improve seed replacement rates for raising farm productivity.
As for Farmer-Centric Interventions
Encourage farmer producer organisations (FPOs) as an aggregation mechanism to bring the power of scale to the small farmers.
Strengthen producer organisation promoting institutions (POPIs) to build and incubate robust FPOs by developing their self-governance capacity and business management competence.
Provide financial support to FPOs for creation of farm level infrastructure for cleaning, grading, sorting, assaying, as also for the establishment of farm equipment custom hiring centres.
Encourage innovative formats of organisation for consolidation of land holdings - with individual farmers continuing to be the owners of their land - to enable economic scale in farming and capital investments.
Help augmentation of farm incomes through additional sources, such as dairy, poultry, honey-making, solar power generation, agro-tourism, etc.
Set up a national centre of excellence to develop women-friendly farm equipment to minimise their physical drudgery in farming activities.
Make Krishi Vigyan Kendras responsible for reducing the cost of cultivation in their catchments through adaptive research.
Convert input subsidies into direct pre-season financial support to both land-owning and tenant farmers for buying inputs through pre-paid cards valid at accredited dealers.
Reji K Joseph, director of Kerala-based Paragon Polymer Products Pvt Ltd
GST refunds, a key pain point.
Reji K Joseph, director of Kerala-based Paragon Polymer Products feels that while implementation of GST was a good measure, especially for companies that have an all India market, there are problems. "The main problem is getting a tax refund (input materials have different taxes above 5 per cent) and our products come under 5 per cent. So, we are eligible for refunds of the input materials and this runs into crores." But then, he says, "our company can make profits only when we can get these refunds in time and not end up each month with a huge outstanding." | focusing on agri-tech is going to be very important, says biocon's Kiran Mazumdar-Shaw. he says farmer FPO model should be hugely expanded with a large number of incentives. micro-entrepreneurship should be another area of focus especially for job creation. he says we need policies that incentivise corporate spending into R&D. | Positive |
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Handset makers expect the government’s proposal to increase duty on printed circuit board assembly ( PCBA ) and chargers to help significantly expand the local manufacturing capacity of the components. They, however, want a consistent long-term policy to make India an export hub.On Saturday, the government proposed increasing the import duty on PCBAs to 20% from 10% and chargers to 20% from 15%, to encourage local manufacturing. This will help increase the local production of PCBAs by more than 100 million and chargers by 50 million units, said the companies for whom these are key inputs. Currently, 160 million PCBAs are produced locally every year. Data on chargers weren’t immediately available.The PCBA duty hike is the right move for the industry, Lava International chairman Hari Om Rai told ET. “We must manufacture every single PCBA here now.” The move will enable the country to meet the target of manufacturing 100 crore indigenous mobile handsets and promote the domestic contribution to value chain of ESDM (electronic system design and manufacturing) to achieve $400 billion (Rs 28.6 lakh crore) of local manufacturing by 2025, said Prashant Singhal, EY’s emerging markets TMT leader.Out of the targeted 100 crore mobile handsets, 60 crore, valued at about Rs 7 lakh crore, would be for exports. The government has set an ambitious target to increase smartphone exports from the country to $110 billion by 2025 from $3 billion now. Nipun Marya, the director of brand strategy at Vivo India, said the budget proposal was in line with the government’s focus on increasing local manufacturing.The government has also proposed that fingerprint readers, ringer/vibrator and display and touch panel will attract 15%, 15% and 10% duty, respectively. “The duty hike for display and touch panel will come into effect in October,” India Cellular and Electronics Association chairman Pankaj Mohindroon said. | government proposes increasing import duty on printed circuit board assembly ( PCBA ) and chargers to 20% from 15%. handset makers expect the increase to help significantly expand local manufacturing capacity of the components. but they want a consistent long-term policy to make India an export hub. the government has set an ambitious target to increase smartphone exports from the country to $110 billion by 2025 from $3 billion now. | Positive |
https://www.businesstoday.in/current/economy-politics/need-to-develop-clusters-to-make-madhya-pradesh-an-attractive-manufacturing-destination-says-industry-expert/story/385169.html | As India intends to become $5 trillion economy by 2024, developing industry clusters is key for regional economic development as it would help increase productivity, stimulate innovative new partnerships, even among competitors, and present opportunities for entrepreneurial activity, said R S Goswami, President, Federation of Madhya Pradesh Chambers of Commerce and Industry. He was speaking in a panel discussion on 'MP Industrial clusters 2.0' during the Business Today Business Leaders of Madhya Pradesh event in Bhopal on Wednesday.
It is important to understand the drivers and economic elements that enable these clusters to function, said panel's moderator Mohammad Athar, Partner-Economic Development and Infrastructure, PwC India.
Goswami also stressed the importance of encouraging and supporting industry clusters to promote job creation and economic growth.
He said that state government should focus on improving value chain, ease of doing business and single window clearance system to boost manufacturing clusters and help the sector compete with China, UK, Vietnam and South Korea. He also pressed for abolishing license system, working on sector-specific policy and implementing feedback mechanism from industry.
Goswami, who is also the Chairman of Hind Pharma, said that Madhya Pradesh needs to do more to make the state an attractive manufacturing destination. He also expressed hope that government may soon announce some measures on cluster development He also talked about engineering cluster in Govindpura and pharm cluster in Indore.
Govindpura is an area in the BHEL township in the city of Bhopal that support the PSUs and industries in and around the city to develop engineering products, especially transformers.
The state has been an early mover in setting up industrial clusters such as Pithampur, Dewas and Mandideep. That has resulted in many big businesses being established in the state apart from creating an ecosystem for small businesses.
Speaking at the event, Rajesh Rajora, Principal Secretary, Industries MP, said that the state government may soon announce proposal for enabling single window clearance.
ALSO READ: Centre's efforts to remedy slowdown blues are 'too little, too late', says Kamal Nath | MP industrial clusters 2.0' is key for regional economic development. it would help increase productivity, stimulate innovation and present opportunities for entrepreneurial activity. 'it is important to understand the drivers and economic elements that enable these clusters to function,' said panel moderator. 'government should focus on improving value chain, ease of doing business and single window clearance system to boost manufacturing clusters' | Positive |
https://www.financialexpress.com/economy/ad-guru-martin-sorrell-lauds-modi-heres-why-wpps-founder-is-an-unashamed-india-raging-bull/1188162/ | Even as all eyes turn to the GDP numbers to be released by the CSO later today, advertising major WPP’s founder Sir Martin Sorrell said that India’s economic background is well poised to grow, and noted that PM Narendra Modi has had a significant impact on the Indian economy.
“ I continue to be an unashamed, raging India bull. PM Narendra Modi has had a significant impact on the Indian economy,” Sir Martin Sorrell said in an interview to CNBC TV18, adding that while the growth has slowed due to disruptions such as demonetisation and GST, the Indian economy will regain momentum soon. “It appears that the momentum has slightly shifted down due to demonetisation and GST. I think the political trends in India will continue to improve and the economic background for the country will also improve,” former WPP chief, Martin Sorrell said.
Noting the various positives in the country, he said that India is poised to grow faster in terms of GDP. “It will be the most populous country on the planet, with one of the youngest profiles. India has also leapfrogged on technology–from analogue to smartphone in one leap, it represents a significant opportunity,” he said. In the interview, Martin Sorrell noted that India has seen many disruptive approaches especially in its e-commerce and telecom industry. “There has been highly disruptive approaches in India in distribution, with Amazon, Flipkart and Walmart. We are also seeing Mukesh Ambani-led reliance Jio making very significant investments in telecommunications and technologies,” he noted.
While the CSO will release its data later today, India is rebounding from an economic slowdown, with growth seen at more than 7 percent, only to find itself ensnared by the volatility engulfing emerging markets, according to Bloomberg. A recent survey by the agency reveals that growth in the fourth quarter of the fiscal year is set to pick up to 7.4 percent. A recent Icra report had expected GDP growth in January-March 2017-18 at 7.4 percent on account of good rabi crop harvest and improved corporate earnings, up from 7.2 percent in the third quarter. | the CSO will release its GDP figures later today. the country is rebounding from an economic slowdown. the growth in the fourth quarter of the fiscal year is set to pick up to 7.4 percent. a recent survey by the agency reveals that growth in the fourth quarter of the fiscal year is set to pick up to 7.4 percent. a recent survey by the agency reveals that growth in the fourth quarter of the fiscal year is set to pick up to 7.4 percent. | Positive |
https://www.businesstoday.in/markets/company-stock/godrej-properties-share-hits-all-time-high-housing-project-bengaluru/story/424247.html | Godrej Properties share made a fresh all-time high today after the realty firm said it would develop a residential project in Bengaluru. Godrej Properties stock touched an intraday high of Rs 1,261.6, rising 4.2% against previous close of Rs 1, 210 on BSE. The stock has gained 6.16% in the last 3 days.
Godrej Properties stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share rose 41.68% in one year and gained 27.12% since the beginning of this year. In a month, the share has climbed 32.04%.
Market cap of the realty firm stood at Rs 31,671 crore. Later, the share closed 3.77% or Rs 45 higher at Rs 1,256 on BSE.
The company made an outright transaction to purchase a well- located land parcel in Whitefield, Bengaluru.
Spread across 18 acres, the project would offer 0.22 million square meters (2.4 million square feet) of saleable area of primarily residential apartments.
"We are happy to add this new project in Bangalore. Bangalore is a key market for us and this project fits well with our strategy of deepening our presence across the country's leading real estate markets," said Pirojsha Godrej, Executive Chairman, Godrej Properties.
Meanwhile, Sensex closed 181 points higher at 45,608 and Nifty rose 37 points to 13,392. Intra day, both indices touched all time highs with Sensex hitting 45,742 and Nifty touching 13,435.
Share Market Highlights: Sensex ends 181 points higher, Nifty at 13,392; TCS, RIL, SBI, Infosys top gainers | Godrej Properties shares hit an intraday high of Rs 1,261.6. the realty firm said it would develop a residential project in Bengaluru. the share rose 41.68% in one year and gained 27.12% since the beginning of this year. Sensex closed 181 points higher at 45,608 and Nifty rose 37 points to 13,392. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/the-week-that-was-in-10-stocks-hdfc-bank-slumps-adani-power-tata-chemicals-airlines-rally/articleshow/79588660.cms | MUMBAI: Benchmark equity indices extended their winning streak for the fifth straight week, and logged new highs helped by strong foreign fund inflows, and better-than-expected GDP data. The Reserve Bank of India’s Monetary Policy Committee (MPC)’s decision to keep policy rate unchanged, further boosted investor confidence.Benchmark Sensex surged 929.83 points or 2.11 per cent to 45,079.55 points during the week, while Nifty surged 289.60 points or 2.23 per cent to 13,258.55 points. As many as 369 of BSE 500 stocks logged gains in the week.Here are key stocks that saw significant movement during the last week:Top private lender HDFC Bank shed 3.86 per cent in the week as the Reserve Bank of India (RBI) temporarily barred it from all launches under upcoming Digital 2.0 offering and issuing fresh credit cards in light of incidents of outages in the last two years.The order was issued on Wednesday after the banking regulator took note of recent outages in the bank’s internet banking and payment system on November 21, 2020 due to a power failure in the primary data centre.Adani Power jumped 54.81 per cent in the week, and was the top weekly gainer on the BSE 500 pack. While the reason for the surge was not known, the stock is still 10.65 per cent away from the 52-week high of Rs 65.95 seen in January.Promoter Tata Sons yet again hiked its stake in Tata Chemicals, as it bought 25,71,651 shares at Rs 471.88 per share. Earlier this month, it bought 18,07,245 shares of Tata Chemicals, and it already held 29.39 per cent stake in the company at the end of September.InterGlobe Aviation and SpiceJet rose 15.20 per cent and 24.90 per cent, respectively, after they were allowed to operate up to 80 per cent of pre-COVID flights from the current 70 per cent.The South Indian Bank jumped 17.97 per cent to Rs 8.93 share as Portuguese firm Pettigo Comercio Internacional LDA bought 99,71,500 shares of the bank.GAIL rose 16.59 per cent and was the top gainer on Nifty for the week. The stock gained traction after oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for unified gas transmission tariff structure. The tariffs will be applicable based on two zone structure related to distance from source of gas.Paint maker Asian Paints climbed 13.15 per cent in the week. After correcting on worries of rising crude oil prices, the stock regained momentum and traded firm on account of sustained buying.India’s top car maker Maruti Suzuki India rose 11.03 per cent and logged a 52-week high of Rs 7,777 after Chairman R.C. Bhargava said in an interview with Bloomberg Television that it is expecting next year to be “much better" than 2020 as the economy rebounds and consumers emerge from pandemic-induced lockdowns to buy its vehicles.Diagnostics firms Metropolis Healthcare and Thyrocare Technologies dropped 11.23 per cent and 4.54 per cent, respectively, as Covid-19 RT-PCR test prices have been reduced substantially by Odisha and West Bengal governments, which may hurt the margins of these companies. | Sensex surged 929.83 points or 2.11 per cent to 45,079.55 points. Nifty surged 289.60 points or 2.23 per cent to 13,258.55 points. top private lender HDFC Bank shed 3.86 per cent in the week. top promoter Tata sons hiked stake in Tata Chemicals. sainsbury's soared 5.6% in the week, with a 4% gain on s&p 500. | Positive |
https://economictimes.indiatimes.com/markets/expert-view/willing-to-give-up-real-estate-business-for-financial-services-sameer-gehlaut-indiabulls/articleshow/68787963.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Operations Officer Programme Visit IIM Lucknow IIML Chief Marketing Officer Programme Visit Indian School of Business ISB Chief Digital Officer Visit
’s proposed acquisition of Chennai-based Lakshmi Vilas Bank (LVB) qualifies on every aspect of the current policy framework, says, chairman of the real estate group. He says the acquisition, if it goes through, will benefit consumers as more competition will lead to better pricing for savings accounts and loans. Gehlaut tells Joel Rebello the reasons behind the move to acquire LVB, his plans for the bank and the challenges the group faces.Edited excerpts:If stronger players come in India banking, consumers will benefit because more competition leads to better pricing for savings accounts and loans. In the US, 48,000 citizens have one bank, which is 3 crore to one bank here. While the US economy is eight to nine times bigger, this number is 660 times. This is the macro picture. For me, this step is a big sacrifice. From my perspective, I have to bring my shareholding down to 15%, losing control and am completely dependent on what RBI allows me to do. I am losing all the power and also dividend income that I have. I am losing all this to make this institution a legacy for the next 100 years.Our thinking around the bank is to provide strong focus on SME financing and housing. Bank of England gave us 40% controlling stake in Oak North Bank in 2015. Today, it is the size of LVB, with a loan book of more than Rs 20,000 crore and deposit base of Rs 23,000 crore without having any branches. In the process, thousands of jobs have been created through SME financing. If someone is open to having their books supervised by RBI and if they have a track record, why should they not be allowed to run a bank?I won’t be in a position to comment on our interaction with regulators because it is confidential. But there has been a lot of debate around what happened in 2013 and I want to give some hard facts on that. In 2013, there were 27 applicants and only two got licences. The others were not rejected but were told that there will be a specific policy framework to apply again which was then followed by regulations for on tap banking licences in 2016. Those regulations say 60% of the revenue has to come from financial services and track record etc. Over the years, Indiabulls real estate business which used to be 50% is now less than 20%. Of the ?5,000-crore profits, the group makes, real estate contribution is less than 10%. My real estate business is shrinking and that is a key thing. Real estate is also not a forbidden business, but a legitimate business. Companies are dynamic in nature. Businesses change, financials change over a period of time.RBI will evaluate it on merit. They will examine whether we fit into their parameters threadbare once we apply after shareholder approvals. We qualify on every aspect, according to current policy framework. We don’t want any dispensation. Even on meeting SLR and CRR requirements, we meet them on day one with the liquidity we have. The cash with the company was in excess of Rs 27,500 crore. No dispensation is needed on an operating basis or from a regulatory point of view.Anyone can apply for a fresh licence but, as I understand, there is an external evaluation committee needed, which is not there because nobody has applied. From our perspective, this opportunity came by, we figured out that we are a good fit as far as regulatory framework is concerned and, at the same time, we are getting access to an ongoing platform. We will not lay off even a single person. We have evaluated all these things before making the move.I am willing to do what RBI tells me to do. If RBI wants that I should give up real estate, I will give it up. It is not needed because the regulations are clear but, if they insist, I am happy to do that because my heart and passion lies only in financial services. That’s how my group from being 50:50 has reached to a 90:10 in terms of business and I know this percentage will only decrease. I am willing to give up real estate business to pursue financial services.When a sector goes through a tough time, everyone gets painted by the same brush. But through the crisis, we have provided our liquidity position. We had cash of more than ?20,000 crore every single day despite the negative carry. Our FII ownership at 56% is the second highest behind HDFC and my shareholding is just 21.5%, so there is enough free float. If there is a knee-jerk reaction by some overseas investors and if there are no buyers, stock price comes down. There are people who want to benefit by selling short positions. Even now, with this merger, we expect a lot of complaints. We know our detractors will put their negative energies to work but we don’t get discouraged.There are many. They keep floating around theories about Indiabulls. But our track record speaks for itself. Our group has grown from post IPO market cap of Rs 250 crore in 2004 to Rs 65,000 crore today. Our returns have grown at more than 35% CAGR. Today, Indiabulls Housing has 618 relationships with financial institutions but some people, just out of habit or because of a case of sour grapes, are on the negative track. But we always focus on our work. | the proposed acquisition of Chennai-based Lakshmi Vilas Bank qualifies on every aspect of the current policy framework. the acquisition, if it goes through, will benefit consumers as more competition will lead to better pricing for savings accounts and loans. in the us, 48,000 citizens have one bank, which is 3 crore to one bank here. while the US economy is eight to nine times bigger, this number is 660 times. | Positive |
https://economictimes.indiatimes.com/tech/ites/indian-it-firms-likely-to-persist-with-ongoing-digital-transformation-projects/articleshow/75126016.cms | Elevate Your Tech Prowess with High-Value Skill Courses Offering College Course Website Northwestern University Kellogg Post Graduate Certificate in Product Management Visit Indian School of Business ISB Professional Certificate in Product Management Visit IIM Lucknow IIML Executive Programme in FinTech, Banking & Applied Risk Management Visit
BENGALURU: Indian IT firms are likely to persist with ongoing digital transformation projects that save costs for clients, even as they witness a drop in discretionary spending as businesses focus on survival in the wake of the Covid-19 pandemic, said analysts.Service contracts for works such as automation of processes, movement of business applications to the Cloud (remote servers) and Artificial Intelligence-based process transformation are expected to continue since they result in short-term cost savings for businesses, analysts said.“...where digital transformation saves the client money in the form of lower operating costs, we do see an appetite to move forward,” said Peter Bendor-Samuel, chief executive officer of Everest Group, a US-based IT advisory and research firm.“Having said that, it looks like we are entering a recession where capital for projects may be hard to find, hence these digital projects which save money have a quick ROI (Return on Investment ),” he added.This is, however, a “mixed bag” and many organisations have started cutting discretionary projects including digital transformation contracts, Bendor-Samuel cautioned.IT firms generate higher margins in projects that are discretionary as it is outside planned budgets.Clients of the Indian IT services companies in the travel and transportation sector, including airlines and hotels, have begun to cut services and outsourced staff.Top tier software services exporters such as Infosys and Wipro reported 40.6% and 39.8% revenue, respectively, from digital technology-led services for the October-December period last year. Technology services providers have seen outsourcing work across various industry sectors and types of projects being suspended. However, some large clients have continued discretionary spending on digital technology transformation despite a dip in overall business in the United States and the United Kingdom.“Large companies may absorb the cost of contracts in such difficult times, but small enterprises in the UK and other markets are more interested in saving their current business and not ready to spend on any incremental technology projects,” said a senior executive at a large Indian IT services firm, who did not want to be named.Many such projects would be deferred, the executive added.“I want to stress (on the fact) that there are lots of examples where digital transformation does lead to cost savings, and this is the area where the Indian firms can focus on to offset the loss of discretionary spends,” said Bendor-Samuel. | IT firms likely to continue with ongoing digital transformation projects that save costs. some large clients have continued discretionary spending on digital technology transformation. top tier software services exporters such as Infosys and Wipro reported 40.6% and 39.8% revenue. a number of large clients have continued discretionary spending on digital transformation. a number of large clients have continued discretionary spending on digital transformation. | Positive |
https://economictimes.indiatimes.com/markets/bonds/rec-raises-500-million-by-issuing-overseas-bonds/articleshow/75718010.cms |
New Delhi: State-owned REC on Wednesday said it has raised $500 million (around Rs 3,773 crore) through issuance of overseas bonds According to deal investors, this is the first ever overseas bond issue by an Indian company since the Covid-19 crisis.REC said in a statement that the Notes (bonds) will mature on May 19, 2023 and all principal and interest payments will be made in US dollars. The settlement date for the Notes is expected to be May 19, 2020.The issue was oversubscribed and saw bids of $2.5 billion, Arun Saigal, head of debt capital markets for Barclays Bank in India, said, adding that the yield at which the money is being raised is 4.86 per cent.The company had embarked on the issue in February and the roadshows were also held immediately, but with the Covid-19 pandemic striking a heavy blow in March, it had to wait till Tuesday for the issue to be completed, he told reporters over a call.Barclays, which claimed to be leading the tables for arrangers for the $7.5 billion of bond issuances by Indian companies since the beginning of the year, pitched for a relaxation in the External Commercial Borrowing guidelines to reflect the ground situation, saying such a change can help push up issuances by Indian entities.At present, the guidelines cap the coupon payable at 4.50 per cent over the Libor rate, Saigal said, pointing out that the money raised by REC, a quasi-sovereign entity, was at the same level, which only makes it clear that it will be tougher for others to access the markets because of the pricing issues.He said there are investors willing to invest in Indian paper, but that the guidelines need to reflect the new operating environment where investors may seek greater coupons for the heightened risks."We continue to see demand for Indian bonds, albeit at a higher price," he said.Also, there are caps on the end use of the funds raised wherein capital expenditure is mandated. However, in the new environment, there is a higher likelihood of the funds to be used for refinancing or other operational expenditure-related aspects, he said.The bank's head of debt origination in Asia Pacific region, Avinash Thakur, said India continues to be a geography of great interest because of its size and the growth prospects.Saigal said he is confident that the Reserve Bank is looking into the matter and will be coming out with the changes soon to make it easier for more corporates to access the money.Meanwhile, he said that there is a likelihood for the well rated and investment-grade companies which are not impacted by the Covid-19 crisis to go in for bond buybacks in order to save money by making use of the balance-sheet strengths.Money markets will be needing help from Reserve Bank for stabilisation, like the announcement of open market operations, or direct buying of government bonds by the central bank or switches to digest the supply in the wake of the additional borrowing of over Rs 4 lakh crore announced by the Centre last week, he said.On the targeted long term repo operations, he said a bulk of the help from RBI was cornered by the sovereign/quasi-sovereign entities and also the well-rated corporates, leaving little for the low rated ones.The overseas bonds issued by REC represent direct, unconditional and unsecured obligations of the issuer and will rank pari passu among themselves and all other unsecured obligations of the issuer, the REC statement said.The bonds will be listed on London Stock Exchange's International Securities Market (ISM), Singapore Exchange (SGX-ST), India International Exchange (India INX) and NSE IFSC.The net proceeds from the sale of the Notes will be used for lending to the power sector. | REC says it has raised $500 million (around Rs 3,773 crore) through issuance of overseas bonds. the issue was oversubscribed and saw bids of $2.5 billion, barclays bank says. the company had embarked on the issue in February but had to wait until Tuesday for the issue to be completed. the bank has pitched for a relaxation in the external commercial borrowing guidelines. | Positive |
https://www.financialexpress.com/lifestyle/health/international-womens-day-women-from-the-poorest-households-still-unreached-by-empowerment-initiatives/1892554/ | By Vijay Avinandan and Vikas Choudhry
Empowering women to protect and improve their health is at the core of the empowerment agenda today. Recent evidence gathered by researchers at the London School of Hygiene and Tropical Medicine (LSHTM) has established that women’s increasing power to make health decisions can lead to positive health impacts. In India, efforts are being made to increase a woman’s decision-making power concerning her sexual and reproductive rights through awareness campaigns/outreach and improvements in the quality of health service.
In the year 2018, the World Health Organization (WHO) highlighted India’s groundbreaking success in reducing maternal deaths between 1990 and 2016. The decline in maternal death figures was critical as it entailed multiple sub-results attached to it.
Maternal deaths often reflect existing inequalities in access to health services and highlight the gap between the rich and poor. According to WHO, women in less developed and developing nations report more pregnancies than other women, and their lifetime risk of death due to pregnancy is higher. A reduction in maternal deaths, in a macro understanding, hints towards positive health-seeking behavior among women and their families in the form of institutional deliveries and improved quality of health service at the healthcare facility.
But while the evidence provides some clarity on the macro understanding, there is very little evidence in India to establish whether women’s say in their health decisions has improved on the ground. In fact, the association between women’s empowerment and positive health outcomes has received less attention in the country.
Rather, recent national-level surveys indicate a contrary viewpoint. According to the National Family Health Survey (NFHS-4), the number of literate women in India increased from 55.1% to 68.4% between 2005-06 and 2015-16.
In the same period, contraceptive usage among women has remained constant, and very few health workers (18%) were speaking to women about family planning methods and benefits in 2015-16.
Women’s knowledge about the benefit of consistent condom use in reducing HIV/AIDS is still far lesser compared to men and increases the risk of illness. About 31% of women were facing spousal violence in 2015-16. The poor and vulnerable categories were at higher risk.
The NFHS-4 also found that women from the poorest households were more likely to not use a contraceptive method for family planning, had lesser say in household decision making, and were more likely to be unemployed or engaged in employment without pay. Women from the poorest households were twice as likely to experience physical violence compared to better-off households.
Ideally, an increase in the literacy rates, along with an increase in decision making at a household level, should have led women to increase their self-efficacy and make life-enhancing health decisions.
For example, educated women with a greater agency (the ability to define goals) are more likely to have fewer children, more likely to access health services, and have control over health resources and less likely to suffer domestic violence. Their children are more likely to survive, receive better childcare at home, and receive healthcare when they need it.
Healthy women are more able to participate in society and markets actively and are likely to have greater bargaining power and control over resources within the household.
However, a reduction in maternal deaths or an increase in institutional deliveries in India does NOT seem to reflect a structural change in household dynamics or social norms. Especially women in poorer households remain vulnerable to health risks, often superimposed by societal norms.
There is a lack of well-researched evidence exploring the effect of public health investments and whether it has been able to increase women’s power in improving their health. The insights from NFHS-4 has three key implications for the women empowerment dialogue in India. First, the initiatives aimed at improving women’s health need a more proactive approach to reach women in vulnerable and poorest households.
Second, while the initiatives rightly focus on improving agency and decision-making at an individual level, there is an equal need to work on relaxing societal norms that hinder individual decision-making and the achievement of positive health outcomes.
Third, there is an urgent need to increase research efforts towards studying the relationship between multiple domains of empowerment, i.e., economic and health empowerment, and identify enabling conditions that can lead to positive outcomes across more than one domain.
The authors work with Sambodhi Research & Communications – a multidisciplinary research organization offering data driven insights to national and global social development organisations. | recent evidence gathered by researchers at the London School of Hygiene and Tropical Medicine (LSHTM) has established that women’s increasing power to make health decisions can lead to positive health impacts. efforts are being made to increase a woman’s decision-making power concerning her sexual and reproductive rights. in the year 2018, the world health organisation (who) highlighted India’s success in reducing maternal deaths between 1990 and 2016. | 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://www.financialexpress.com/opinion/the-farm-reforms-must-be-celebrated/2088587/ | As a rule, individuals are not inclined to change, and hence any reform that disrupts the status quo equilibrium is treated with suspicion. This holds for the three ordinances passed in the agriculture domain that have caused a stir. Any move that questions existing entrenched systems questions the hegemony of those who wield power, and hence leads to opposition.
Let us examine the three issues that are on the discussion board. The first one relates to sale of produce outside the mandi. This ordinance defines the ‘trade area’ that is outside the mandi, and the ‘trader’ who could be the processor, the exporter or even the retailer. The new dispensation says that the farmer can sell to the ‘trader’ in these ‘trade areas’, which can be a place of production, collection or aggregation. The transaction need not go to the mandi, though the option still exists.
Hence, if an edible oils manufacturer wants to buy soybean from a farmer, the transaction need not go through the mandi and can transacted at the farmgate. Logically, this is an optimal solution because with information on prices being freely available today, the farmer can get the best price and eschew the mandi. These transactions will be free of any fee or cess that must be paid otherwise at the mandi. It is a Pareto optimal situation for the farmer and the trader where both can be better off. However, as this means skipping the mandi, which has vested interest built over the years, it is understandable that there is opposition.
At the limit, one can visualise a situation where most transactions take place outside the mandi and the market yards become less relevant, and the entire hierarchy of the mandi system, which includes commission agents, becomes unimportant. Now, intuitively, it can be argued that farmers will prefer the new ‘trade area’ to the mandi only if they see value in this option. The same holds for the trader who will purchase directly when there are cost advantages.
Quite clearly, mandis will have to reinvent their systems to stay relevant. As there is a loss of fee which is collected that can range from 1-8% depending on the state and product, the fear of viability is genuine.
The way forward is to have open markets and allow free flow of goods across borders where there is transparency. In fact, the idea of eNAM has its genesis in this thought because, at the end of the day, the price discovery system must be transparent. This idea is taken several steps forward with trade being conducted in these new defined ‘trade areas’.
It should be remembered that farmers may still prefer to go through the adathiyas route because these agents often provide a variety of ancillary services, starting with crop advice, buyback, credit and logistics support, among others. This will probably intensify once a parallel system develops.
A corollary of freeing the market dynamics is having written agreements between the farmer and the company under contract farming. This is again a mutually-beneficial system where the corporate ties up with the farmer on pre-decided terms to grow crops of specific variety with support provided on credit and possibly the inputs too with the assurance of a guaranteed buyback. This is a win-win situation for both the sides. Corporates, who are into processing or manufacturing of end-products, would always look out for standardisation in quality of inputs.
Farmers, too, can move to higher quality of crop rather than sticking to the median variety, which is the case today given the tradition that has been practised over the years. Therefore, this move by the government will be extremely beneficial for Indian agriculture and bring about a major transformation in the landscape and make farming more commercial.
The opposition to both these measures can be largely political, which is understandable. But otherwise to argue that farmers are naïve and will be given a bad deal by ‘traders’, meaning large corporates, is disingenuous. Indian farmers are quite sophisticated and do use all the information that is available when taking decisions. The current structures are traditional for sure, which have worked under prevailing conditions.
But any new structure for sale or cultivation would be weighed appropriately before a decision is taken. Hence, the fear that the corporates will take over the entire community and make them subservient is not well-founded.
In fact, such measures will force the existing structures to change and ensure that farmers get a better deal. It is well known that farmers selling perishables like vegetables or fruits are forced to sell their products at lower prices in mandis as they cannot take their goods back to their village if a sale does not take place.
This forces distress sale as commission agents buy at a lower price and deliver at a higher price at the retail end. This has been one reason why there is considerable disparity in wholesale and retail prices for almost all commodities—all of which cannot be explained by logistics costs.
The third reform has been the repeal of the Essential Commodities Act. This is progressive, as the Act which sought to penalise traders who held on to stocks beyond what was permitted did create problems for wholesalers and retailers. It must be realised that most crops are produced once a year and stored and made available throughout the year. The issue is that farmers must sell their crop immediately as they do not have the holding power.
Intermediaries or traders who come into the picture store the crop and bear the costs of storage, interest on loans, possible deterioration in quality, transport, among others. There is, hence, intrinsic value that is being provided by these parties.
The Essential Commodities Act makes it a crime to go beyond the stock limits for all the defined commodities and is invoked whenever there is a shortage in supply of a product. Traders holding the stocks are now classified as hoarders and face penal action. The government has put in the safeguard of this Act being invoked only if retail prices rise by certain levels compared with the past period. This makes sense because if hoarding is seen to increasing prices, this Act can be brought in to check inflation as it has a bearing on overall CPI inflation and hence interest rate policy.
All these three reforms will be very positive for the agrarian economy, and with the assurance being given that the MSP will not be withdrawn, there is comfort being provided. But, logically, in course of time, if the system works well for farmers who are able to get better prices, the government can think of scaling down the procurement system and the MSP as the open-ended procurement scheme has distorted farm markets. Adathiyas will have to compete with corporates to retain their business and the overall system will only improve. Electronic trading will get a boost on the side-lines and the idea of free agricultural markets will see fructification over the next couple of years.
The author is chief economist, CARE Ratings. Views are personal | the new ordinance defines the ‘trade area’ that is outside the mandi. farmer can sell to ‘trader’ in these ‘trade areas’. the farmer can get the best price and eschew the mandi. the way forward is to have open markets and allow free trade. the new ordinance also allows farmers to sell to ‘traders’. | Positive |
https://www.financialexpress.com/industry/ashok-leyland-to-buy-19-additional-stake-in-hlfl-for-up-to-rs-1200-cr/1902689/ | Commercial vehicle major Ashok Leyland (ALL) on Wednesday said that the board of directors of the company has given approval to acquire up to 19% additional equity shares in Hinduja Leyland Finance (HLFL), a subsidiary company, from the existing shareholders, in tranches, for a consideration not exceeding Rs 1,200 crore. This move forms part of ALL’s consolidation in the company.
Last month, ALL, along with other investors, had entered into a supplemental share purchase agreement with Everfin Holding to acquire 3,28,14,401 equity shares collectively (constituting 7% in the paid-up share capital of HLFL) at an agreed price of Rs 119 per share for a total consideration of Rs 390.94 crore. The agreement to acquire the equity shares of HLFL has been spread over a period of nine months in various tranches.
In November 2017, Ashok Leyland had bought out Everfin Holdings’ 4.68% stake in HLFL for a consideration of Rs 225 crore, sources in the know said. Everfin Holdings, an arm of Everstone Group, has been the investor of HLFL since 2013. For the fiscal year ended March 2019, HLFL had reported a profit of `275.64 crore on a revenue of Rs 2,560.64 crore.
Consequent to Everfin Holdings’ decision to sell part of its stake in HLFL, Ashok Leyland, with other investors, has decided to acquire the shares in five tranches. Of the 7% holding, 2.11% has already been acquired by other investors
Hinduja Leyland Finance was incorporated on November 12, 2008. It is one of India’s leading vehicle finance NBFCs with a focus on urban and semi-urban markets. Through a vast network of branches, it finances a wide range of commercial and personal vehicles, which include medium- and heavy-commercial vehicles (MHCVs), light commercial vehicles (LCVs), small commercial vehicles (SCVs), cars, multi-utility vehicles, three wheelers, and two wheelers, as well as various kinds of used vehicles. It also finance tractors and construction equipment, and provide loans against property (LAP).
ALL in a regulatory filing said that the agreements to acquire 19% equity shares in HLFL from the existing shareholders will be entered by the company in due course. “As and when the company completes acquiring shares in tranches and if the said acquisition exceeds 2% or more of the equity shares of HLFL, the company will inform the stock exchanges, as required,” ALL said. | commercial vehicle major has given approval to acquire 19% equity shares in Hinduja Leyland Finance (HLFL) from existing shareholders in tranches. move forms part of ALL's consolidation in the company. last month, ALL entered into a supplemental share purchase agreement with Everfin Holding to acquire 3,28,14,401 equity shares collectively. agreement to acquire equity shares has been spread over a period of nine months in various tranches. | Positive |
https://www.financialexpress.com/industry/ikea-in-india-60-lakh-eager-shoppers-expected-to-throng-first-ikea-store/1273345/ | In a milestone that’s been more than a decade in the making, India’s first Ikea store will open Thursday, bringing inexpensive Nordic-inspired furnishings and food to the world’s fastest-growing middle class. Ikea expects to welcome as many as 6 million visitors a year to its 13-acre complex in Hitec City, on the outskirts of Hyderabad, India’s fourth-biggest city. The 400,000-square-foot showroom contains some 7,500 products, of which about 1,000 will sell for less than 200 rupees ($2.91) apiece. It’s the first of 25 stores Ikea plans to open across the nation by 2025.
Ikea’s launch comes at least 12 years after it started studying India, which is poised to overtake the U.S. to become the world’s second-largest middle-class market by 2022. By then, sales of homewares and home furnishings will probably reach $15.3 billion from $12.9 billion last year, according to researcher Euromonitor International.
“Rising incomes and affluence make for an attractive market in India,” said Sowmya Adiraju, a research analyst with Euromonitor in Bengaluru, in an email. “Indian consumers are curious to see what Ikea has to offer and the retailer is well-positioned to meet this demand.”
Brand Fatigue
The world’s biggest furniture retailer invested more than 10 billion rupees on its first foray in India. It’s counting on new customers in industrializing nations bolstering sales growth in the face of brand fatigue and increased competition from online retailers, such as Amazon.com Inc. and made.com, in established markets. Ikea added no new outlets last year in Sweden, where domestic sales were flat.
An Ikea is slated to open in early 2019 in Mumbai, followed by stores in urban Bengaluru and metropolitan Delhi. Chennai, Kolkata, Ahmedabad, Surat and Pune are also targeted for stores. Elsewhere in Asia, it plans to set up shop in the Philippines and Vietnam and open additional stores in Bangkok, Thailand, within the next few years.
“The pace of opening stores in India will intensify,” said Harminder Sahni, founder and managing director of consulting firm Wazir Advisors in Gurugram, near Delhi, adding that the 75-year-old Swedish company spent more than a decade researching the market to ensure its success in India. “Ikea has never failed; it’s never closed a single store in its history.”
Ikea’s competitors in India include Godrej Group’s Godrej Interio, Future Group’s HomeTown, Nilkamal Ltd.’s @Home, and Durian Industries Pvt Ltd.’s namesake furniture business, along with “mom-and-pop” proprietors vying for an indoor furniture market predicted to expand about 8.8 percent annually through 2022, according to Euromonitor.
Poverty Constraint
While India offers faster growth than Singapore, Japan, South Korea and other developed markets in Asia, its market is constrained by high poverty levels, income inequality, and relatively low per-household expenditure on homewares and home furnishings, Euromonitor’s Adiraju said.
“Ikea is marketing its product offerings in India as being affordable, stylish and available for all,” she said. “This resonates closely with the demands of an average Indian consumer. Indians, although price conscious, are quite aspirational.”
If two-seat sofas costing as little as 5,990 rupees and 7,990-rupee double-bed frames aren’t enough to lure shoppers, the Hyderabad store features a 1,000-seat restaurant — one of the largest across Ikea’s 400-strong global chain — that will serve a mix of Nordic and local dishes, including biryani for 99 rupees a plate. Chicken and vegetarian meatballs, for 129 rupees a serve, will replace the traditional Swedish ones made with beef and pork. Hyderabad resident B. Sohini Singh said she is keen to try the meatballs between browsing for furniture that she plans to buy before her wedding next March. “I’m waiting for Ikea to open,” the 28-year-old filmmaker said. “It’s just an hour from my home and it will be within my budget. The trigger is obviously price and, of course, the range.”
No DIY Culture
Concerned that the absence of a strong do-it-yourself culture in India could impede acceptance of Ikea’s traditional model of self-assembling furniture, Ikea partnered with local start-up, UrbanClap, and hired 150 staff to offer paid delivery and assembly options, and plans to introduce an online store in conjunction with the opening of its Mumbai outlet in 2019. Initially deterred by since-amended legislation that required foreign single-brand retailers to operate stores with a local partner, the Swedish giant began construction on the Hyderabad complex about two years ago.
Its opening, set for July 19, was postponed by three weeks to give the store more time to “live up to its expected quality commitments towards customers and coworkers,” according to a statement. Some 950 people will be employed directly by Ikea in Hyderabad, with an additional 1,500 jobs created indirectly, a company spokesperson said. Ikea said in December it plans to have 15,000 staff in India by 2025, half of whom will be women. Recent recruits in Hyderabad include eight female forklift drivers and 100 young people from a government-backed program supporting underprivileged women entering the workforce. | the 400,000-square-foot showroom contains some 7,500 products. it's the first of 25 stores Ikea plans to open across the nation by 2025. sales of homewares and home furnishings will probably reach $15.3 billion from $12.9 billion last year. the world's biggest furniture retailer invested more than 10 billion rupees on its first foray in india. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/the-week-that-was-in-10-stocks-hdfc-bank-slumps-adani-power-tata-chemicals-airlines-rally/articleshow/79588660.cms | MUMBAI: Benchmark equity indices extended their winning streak for the fifth straight week, and logged new highs helped by strong foreign fund inflows, and better-than-expected GDP data. The Reserve Bank of India’s Monetary Policy Committee (MPC)’s decision to keep policy rate unchanged, further boosted investor confidence.Benchmark Sensex surged 929.83 points or 2.11 per cent to 45,079.55 points during the week, while Nifty surged 289.60 points or 2.23 per cent to 13,258.55 points. As many as 369 of BSE 500 stocks logged gains in the week.Here are key stocks that saw significant movement during the last week:Top private lender HDFC Bank shed 3.86 per cent in the week as the Reserve Bank of India (RBI) temporarily barred it from all launches under upcoming Digital 2.0 offering and issuing fresh credit cards in light of incidents of outages in the last two years.The order was issued on Wednesday after the banking regulator took note of recent outages in the bank’s internet banking and payment system on November 21, 2020 due to a power failure in the primary data centre.Adani Power jumped 54.81 per cent in the week, and was the top weekly gainer on the BSE 500 pack. While the reason for the surge was not known, the stock is still 10.65 per cent away from the 52-week high of Rs 65.95 seen in January.Promoter Tata Sons yet again hiked its stake in Tata Chemicals, as it bought 25,71,651 shares at Rs 471.88 per share. Earlier this month, it bought 18,07,245 shares of Tata Chemicals, and it already held 29.39 per cent stake in the company at the end of September.InterGlobe Aviation and SpiceJet rose 15.20 per cent and 24.90 per cent, respectively, after they were allowed to operate up to 80 per cent of pre-COVID flights from the current 70 per cent.The South Indian Bank jumped 17.97 per cent to Rs 8.93 share as Portuguese firm Pettigo Comercio Internacional LDA bought 99,71,500 shares of the bank.GAIL rose 16.59 per cent and was the top gainer on Nifty for the week. The stock gained traction after oil regulator Petroleum and Natural Gas Regulatory Board (PNGRB) notified regulations for unified gas transmission tariff structure. The tariffs will be applicable based on two zone structure related to distance from source of gas.Paint maker Asian Paints climbed 13.15 per cent in the week. After correcting on worries of rising crude oil prices, the stock regained momentum and traded firm on account of sustained buying.India’s top car maker Maruti Suzuki India rose 11.03 per cent and logged a 52-week high of Rs 7,777 after Chairman R.C. Bhargava said in an interview with Bloomberg Television that it is expecting next year to be “much better" than 2020 as the economy rebounds and consumers emerge from pandemic-induced lockdowns to buy its vehicles.Diagnostics firms Metropolis Healthcare and Thyrocare Technologies dropped 11.23 per cent and 4.54 per cent, respectively, as Covid-19 RT-PCR test prices have been reduced substantially by Odisha and West Bengal governments, which may hurt the margins of these companies. | Sensex surged 929.83 points or 2.11 per cent to 45,079.55 points. Nifty surged 289.60 points or 2.23 per cent to 13,258.55 points. top private lender HDFC Bank shed 3.86 per cent in the week. top promoter Tata sons hiked stake in Tata Chemicals. sainsbury's soared 5.6% in the week, with a 4% gain on s&p 500. | Positive |
https://www.businesstoday.in/current/corporate/dr-reddy-to-keep-cutting-china-dependence-logistics-hurdles-hurt-india-sales/story/404466.html | Hyderabad-headquartered pharma major Dr Reddy's posted good set of numbers beating analyst expectations for the fourth quarter of financial year 2019-20. The company posted its highest ever sales and EBITDA in a year, according to its filings to exchanges.
The profit after tax saw a growth of 76 per cent year-on-year in Q4 and 4 per cent y-o-y for the entire FY20. Revenues jumped by 10 per cent y-o-y in Q4 and 13 per cent y-o-y for FY20. The EBITDA recorded a 14 per cent and 36 per cent year-on-year growth in Q4 and for the full financial year, respectively.
Sharing the numbers and providing details of the business, The NYSE-listed firm's co-chairman and MD, G V Prasad, CEO Erez Israeli and President and CFO Saumen Chakraborty set up a zoom meeting.
The top executives said that Dr Reddy's stated plans to tap the Chinese markets for sales will remain unchanged. However, in terms of dependence on Chinese inputs to make medicines, co-chairman and MD, G V Prasad says: "We have always tried to reduce our dependence on Chinese inputs for a couple of reasons. One being that the China has been increasing the prices over the last few years. Now, we get the inputs in-house or look to Indian sources for some of it. Overtime, we intend to bring in more products in-house through vertical integration. So, our dependence on China is not that critical. There are some products that we still source but they are available widely."
On the expected impact of coronavirus lockdown on the pharmaceutical industry, he says: "In the last two months, very few patients met their doctors. So, there could be some impact on primary demand. Globally, we have to see how economies will get disrupted. It may impact demand for pharmaceuticals but to a lesser extent as these are essential products."
The company posted good set of numbers in terms of business growth in the US and part of it was also driven by demand arising out of need to stock up medicines and panic buying and from new product launches, though the breakup in terms of contribution to revenues was not shared.
On the reasons for the last quarter seeing a slippage in the India sales, Chakraborty says, it has been due to logistical challenges following disruptions on account of COVID-19-led lockdown. However, he highlights that the Indian market has seen a good year-on-year growth driven by improved realisations in base business, volume traction and new product launches.
The company launched a new product in India in the fourth quarter including 21 new launches it did in FY21. The senior leaders, however, refrained from sharing details on the plans and the net impact of the Wockhardt portfolio it acquired in February this year. Wockhardt's select divisions of branded generics business in India and a few other international territories of Nepal, Sri Lanka, Bhutan and Maldives amount for a consideration of Rs 1,850 crore. It is a deal that analysts say is in line with the Dr Reddy's stated goal of growing its presence in the Indian market. It is expected to strengthen its focus on acute therapeutic area, that is, sudden onset ailments such as cough, cold and some types of pains etc.
Also Read: Need to keep govt revenue in mind, says FM Sitharaman on tax cuts
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Also Read: Govt will make sure banks lend money to smaller businesses: Sitharaman | the company posted its highest ever sales and EBITDA in a year. the profit after tax saw a growth of 76 per cent year-on-year in Q4. the company's plans to tap the Chinese markets for sales will remain unchanged. the company's co-chairman and MD, G V Prasad, says the company is looking to expand. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/dalal-street-week-ahead-action-shifts-to-midcaps-smallcaps-larger-peers-may-halt-now/articleshow/77690813.cms |
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After taking a breather in the week before, the domestic equity market resumed its up-move and posted incremental gains once again during the week gone by. In last five days, Nifty experienced oscillations in a range that was close to its normal trading breadth.At the same time, Nifty also faced resistance at a few crucial levels on both daily and weekly timeframe charts. After moving in a 350-point wide trading range, the headline index ended with net weekly gain of 193 points, or 1.73 per cent.As we approach a new week, we need to take a note of few important points and levels before deciding how to navigate the market over the next few days. On the daily timeframe chart, Nifty is yet to navigate and fill the gap in the 11,430-11,500 zone, created at the very start of the February-March decline.Also, the previous week’s high of 11,460 is where Nifty has faced resistance; that’s where it had broken the lower trend line of the channel it has been moving in. This makes the 11,430-11,500 zone very crucial for the coming days.Volatility continued to decline, with INDIA VIX dipping by a further 8.01 per cent to 19.94 level, taking it to its lowest levels in the recent past.In such a technical setup, we expect the 11,460 and 11,595 levels to act as immediate resistance points. Supports will come in at 11,280 and 11,135 levels.The weekly Relative Strength Index , or RSI, stood at 61.47. It has marked a fresh 14-period high, which is a bullish signal. The RSI, however, remains neutral and does not show any divergence against price.The weekly MACD remains bullish and trades above the Signal Line. However, the slope of the Histogram shows a deceleration in momentum. No significant formation was noticed on the candles.Pattern analysis across timeframes would be required as the current levels are important on the daily as well as weekly charts. On the weekly charts, the index has faced resistance at the lower trend line of the channel that Nifty had violated when it starting to decline. On the shorter daily timeframe chart, the 11,430-11,500 zone represents the gap that was created during in this time period.On the technical front, a rebound in the US Dollar Index and Nifty reacting to the critical zone at 11,430-11,500 are two important factors that can affect the way we approach the market. The midcap universe has started outperforming the frontline index over the past few days. This indicates that not only will the midcaps continue to fare better than the index stocks on a relative basis, but it also points towards the possibility of the benchmark indices taking some breather.Investors and traders can follow the up-moves by strictly guarding profits at current and higher levels as sharply falling volatility remains another big worryIn our look at Relative Rotation Graphs®, we compared various sectors against CNX500(Nifty500 Index), which represents over 95% of the free float market-cap of all the listed stocks.The review of Relative Rotation Graphs RRG ) showed higher chances of the bulk of outperformance coming in from the broader market.Nifty Metal Index has moved in the leading quadrant and is firmly placed to relatively outperform the broader Nifty500 index over the coming week. Along with that, Nifty Auto and IT indices are in the leading quadrant. Importantly, the Smallcap Index among other broader indices has moved in the leading quadrant. Nifty MidCap100 index is rotating in the north-easterly direction, but it is currently positioned in the improving quadrant. These groups are likely to relatively outperform the broader market.Other groups that are likely to put in a resilient show are the Bank Nifty, PSU Banks, Media and Realty groups as they are positioned in the improving quadrant.Nifty Energy Index continues to slip southward in the weakening quadrant along with the Infrastructure group. Nifty FMCG and Consumption packs are also drifting further down in the lagging quadrant. No outperformance is expected from these groups on relative terms.Important Note: RRGTM charts show the relative strength and momentum for a group of stocks. In the above chart, they show relative performance against Nifty500 Index (broader markets) and should not be used directly as buy or sell signals. | domestic equity market resumed its up-move and posted incremental gains once again during the week gone by. after moving in a 350-point wide trading range, the headline index ended with net weekly gain of 193 points, or 1.73 per cent. Nifty is yet to navigate and fill the gap in the 11,430-11,500 zone, created at the very start of the February-March decline. | Positive |
https://economictimes.indiatimes.com/mf/analysis/nine-points-for-a-healthy-financial-plan/articleshow/70255642.cms | How can you prepare a solid financial plan that can take care of all your financial goals? Kartik Iyer, founder and managing partner, Investmart, a wealth management firm based in Vadodara, believes investors can draw up a reliable financial plan if they keep a few important points in mind. Kartik Iyer was speaking at the 14th edition of ET Wealth Investment Workshop held in Surat on July 12. He listed out nine key points for the benefit of the participants at the workshop.“Are you a spender, a saver or an investor,” asked Kartik Iyer. He explained that spenders are those who give priority to spending and then whatever is left becomes their savings. Savers, as the term suggests, are those who give priority to saving and then spend accordingly. Kartik Iyer asked the participants to become investors. "Your savings should be invested in a way to grow and beat inflation," he said.It is imperative to set aside a contingency fund to take care of your financial responsibilities in case of a job loss or medical emergencies, said Iyer. “An emergency fund can help you to deal with any unplanned and non-negotiable expense,” said Iyer. “You can park your emergency fund in savings bank account or bank fixed deposit or liquid mutual funds ,” he added.As a thumb rule, you should have a life insurance cover of at least 10 times of annual salary. Iyer said the basic idea is that the policy sum should be able to take care of your liabilities and the financial needs of your dependents in your absence. He cautioned the participants against mixing insurance and investment. “Insurance is not for tax saving. It is not an investment. Insurance needs also keep on changing. Your insurance requirement goes up as you get married and have kids as they become dependent on you for their financial needs. It goes down once you are retired,” he added.Iyer also dwelt on the importance of health insurance. “Health insurance prepares you to get treatment for killer diseases. It is very important to tackle the rising medical costs which would otherwise eat away your savings and investments towards non-negotiable goals.”Taxes and inflation are the two biggest enemies of your investments, said Iyer. He added that while you do not have much control over taxes, you can try to choose tax-efficient investment product. He told the participants not to focus only on inflation announced by the government and also include lifestyle inflation. “Lifestyle inflation is when you switch from ordinary shoes worth Rs 500 to buy branded shoes worth Rs 3,000, a 500 per cent lifestyle inflation,” explained Iyer. He added that your investments have to beat inflation to grow wealth. Otherwise, there is no use of investing.Iyer advised investors to follow a goal-based approach for investing. He told the participants at the workshop to define different goals with tenures and invest accordingly to achieve those goals. He said the goals can be like saving for your retirement, children’s higher education, house purchase, annual vacation, car purchase or any other goal like saving for charity, house renovation and so on.Once you have defined your goals, you need to look for investment avenues, said Iyer. He asked the participants to choose an asset class for investing based on their risk profile and time in hand to reach a particular goal. He also told investors to understand the product features thoroughly before investing. For instance, if someone is considering parking money in a fixed deposit, she must understand that it is a low-risk and low-return investment. Also, the taxes and inflation will pull down the real returns. The real returns could be negative, too. Similarly, Iyer said, “some exposure to gold as an inflation hedge is fine, but otherwise it neither grows fast nor gives any dividends.”Iyer told the participants that if they want to beat inflation, they should consider investing in equities. “You need to give equities time to produce returns. If you keep on churning your portfolio fearing short term volatility, you will not get the same kind of returns.”It is very important to keep a track of your investments, review it regularly, at least once a year and make changes if required, said Iyer. “Investors often make mistakes when they follow the herd mentality: do what everyone is doing, falling for the sales pitch of bank relationship managers, following the advice of friends and relatives, etc.” He asked the participants to avoid such money mistakes.The last point in the list is a very important step that should be part of every financial plan, said Iyer. "An investor must prepare a will, cross check the holding pattern and nominations in investments and verify bank details and addresses for smooth transmission of assets after him."15th edition of ET Wealth Investment Workshop will be held in Pune on July 26. You can book your seats here: www.etwealthworkshop.com | Investmart founder and managing partner, Kartik Iyer, shares his tips for investors. he says you should have a contingency fund to take care of your financial responsibilities. he says you should have a life insurance cover of at least 10 times of annual salary. he says you should also have health insurance to tackle rising medical costs. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/ril-now-60th-most-valued-firm-in-the-world-climbs-13-places-from-2019/articleshow/76516061.cms | Mumbai: India’s most-valued company Reliance Industries RIL ) is now the 60th most-valued firm in the world, climbing 13 places from end of 2019.The company with a market capitalization of $150.78 billion has risen past the likes of Unilever, Astrazeneca and McDonalds and ranks 60th in terms of market capitalization in the world, data from Reuters Eikon showed. Oil major Saudi Aramco tops the charts.The company is just ahead of UK’s Unilver and lags behind US pharma major Eli Lilly & Co.It has more than doubled from its 52-week low of 867.45 seen on March 23, as it went on a spree of marquee deals for its coveted unit Jio Platforms, and saw a its rights issue, the country’s biggest, sail through.RIL raised more than Rs 1,68,818 crore in just 58 days through Rs 1,15,693.95 crore collected from investors in Jio and another Rs 53,124.20 crore from a rights issue. Along with the stake sale to BP in the petro-retail joint venture, the total fund raised is in excess of Rs 1.75 lakh crore.The stock currently has 17 strong buy, 8 buy, 3 hold, 3 sell and one strong sell rating, data from Reuters Eikon showed.On June 17, JP Morgan re-initiated coverage on the stock with a neutral rating, and a price target of Rs 1,490.The brokerage said RIL’s re-rating on the Jio Platforms stake sale and the potential from a digitized economy is likely to continue, even though in the near term one may not see earnings from any of the initiatives.“The stock price drivers would remain with JPL (Jio Platforms), and while RIL’s retail business is the largest in India and growing, we believe investor focus would be squarely on how JPL rolls out the various digital businesses,” JP Morgan analysts said in the note.“With earnings unlikely to be a driver of the stock price (given muted refining, petchem), and the critical news flow on the JPL stake sale now behind us, we would expect the stock to consolidate after its significant outperformance from the March lows,” they added. | the company has a market capitalization of $150.78 billion. it has risen past the likes of Unilever, Astrazeneca and McDonalds. it is just ahead of UK’s Unilver and lags behind US pharma major Eli Lilly & Co. it has more than doubled from its 52-week low of 867.45 seen on march 23. | Positive |
https://www.financialexpress.com/lifestyle/coronavirus-pandemic-disrupts-global-business-cycle-co-working-emerges-stronger-from-covid-19-crisis/1940892/ | By Manas Mehrotra
The coronavirus outbreak has globally disrupted the business cycle leading to a slowdown. Resilience of business models, resourcefulness of the teams, and responsible cash management of the companies are put to test. While concerns around Covid-19 have also led to reduced footfalls in co-workspaces which have been growing at a rapid pace for the last few years, this blip could be temporary and last till precautions are deemed necessary.
As coworking companies navigate the great unknown, not all remote workers have access to the amenities they need to productively work from home, making coworking spaces appealing during this time of crisis. Many businesses will now seize the opportunity to rethink their working arrangements to provide more flexibility to their employees than ever before, especially considering the benefits of productivity and engagement, and, this will push up the demand for co working spaces. Once the pandemic passes, more businesses will more likely give flexible working arrangements the tick of approval, which would include shifting away from traditional office spaces to more co-working spaces. As long as hygiene practices and health precautions are enforced, coworking spaces provide an alternative for businesses in need of a substitute workspace that may prove useful.
Once the lockdown period ends, companies would also lay more emphasis on cost optimization and prefer flexible workspaces. Most corporates would avoid capital expenditures and look to co-working facilities to expand their business. The co-working industry might also see some consolidation soon and companies will explore acquisition opportunities. The current situation will also see larger enterprises seeking smaller spaces to ensure synergized business continuity in the near future.
People need options and access to a collaborative environment is needed for success in life and work. It’s an opportunity to show how the coworking models can also offer new solutions and make our economy more resilient in such circumstances. Hence a silver lining in all this is that this has offered coworking providers an opportunity to re-think their strategy and make the segment more attractive for consumers.
Longer-term innovation and changes in trends will come about as businesses try earnestly to normalize the impact of the current crisis caused by the pandemic. A recession usually brings about an acceleration in business model change, driving down costs and such pandemics definitely tend to enable entirely new categories of businesses. Companies, particularly start-ups tend to innovate with new ideas for survival and expansion. The shifts will continue, creating a long-term digital disruption that will shape businesses for decades to come.
Coworking companies will score high on the social quotient and it’s only a matter of time before coworking spaces churn out in a new form. Once the isolation measures are reduced, flexible working will emerge stronger than ever and we anticipate a strong desire for startups and entrepreneurs to have access to fit for purpose office facilities with community support, collaboration and knowledge sharing provided by shared spaces. Moreover, not only the startups but SMEs and giant players might also prefer coworking spaces in the near-term.
In the backdrop of the COVID-19 pandemic, while the businesses may reel under pressure temporarily, investor sentiment remains buoyed and the commercial operators are hopeful of better days ahead. The COVID-19 is certainly not an end to the co-working culture as people would discover that the benefits of social gatherings in terms of emotional and intellectual fulfillment would be a crucial necessity for the overall health of a society.
(The author is Chairman, 315Work Avenue. Views expressed are personal.) | coworking spaces are becoming more attractive during this time of crisis. many businesses will seize the opportunity to rethink their working arrangements. once the pandemic passes, more businesses will give flexible working arrangements the tick of approval. coworking spaces provide an alternative for businesses in need of a substitute workspace. once the lockdown period ends, companies would lay more emphasis on cost optimization and prefer flexible workspaces. | Positive |
https://economictimes.indiatimes.com/news/economy/policy/rbi-moves-to-boost-digital-transactions-protect-users/articleshow/66963364.cms | MUMBAI: With digital transactions gaining currency, the Reserve Bank of India RBI ) has announced customer-protection measures to promote and improve confidence in the channel that would help New Delhi achieve its objective of nudging the country to a ‘less-cash’ economy In two separate programmes, the RBI announced reduced consumer liability in case of reported fraudulent digital transactions , and a grievance redressal mechanism for such modes of payment. “The RBI’s endeavour to facilitate a less-cash society has facilitated a significant rise in the volumes, value and channel for conducting digital transactions,” central bank deputy governor M K Jain said Wednesday.“For promoting trust and confidence in this powerful channel, a dedicated and powerful grievance redressal mechanism is a pre-requisite.” The central bank said customers reporting unauthorised electronic transactions early can’t be made liable, irrespective of the instrument used. This is an extension of its previous direction where the RBI sought to protect customers for frauds in online and credit-card transactions.The ambit of customer protection against frauds has now been extended, with the benefit of limiting customer liability now applying to unauthorised electronic transactions involving prepaid payment instruments. The central bank will issue the relevant guidelines by the end of December.Earlier, RBI said customers can’t be made liable at all if they notify the bank within three working days of the fraud. RBI had capped the customer liability at Rs 25,000 if they reported unauthorised transactions within seven working days. The central bank has also unveiled an ombudsman scheme for digital transactions as a customer-protection initiative.“An ombudsman scheme… is being formulated by RBI to provide a cost-free and expeditious avenue to tackle the rising number and complexity of complaints from this channel,” Jain said.This September, 181 million NEFT transactions worth about Rs 18 lakh crore and 486.5 million mobile banking transactions worth about Rs 21.3 lakh crore took place in the banking system, according to the latest RBI data. | RBI has announced customer-protection measures to promote confidence in the channel. customers reporting unauthorised electronic transactions early can't be made liable. the ambit of customer protection against frauds has now been extended. customers can't be made liable at all if they notify the bank within three working days of the fraud. the central bank has also unveiled an ombudsman scheme for digital transactions as a customer-protection initiative. | Positive |
https://economictimes.indiatimes.com/small-biz/sme-sector/samhita-cgf-usaid-others-launch-programme-to-provide-help-for-covid-impacted-livelihoods/articleshow/78891535.cms | MUMBAI: In a bid to restore livelihoods lost during the COVID-19 crisis, Samhita-Collective Good Foundation ( CGF ), the US Agency for International Development ( USAID ), Michael & Susan Dell Foundation (MSDF) and Omidyar Network India have collaborated to launch a $6.85 million blended finance facility called REVIVE.The financing facility, also supported by corporates such as Arvind Limited and Godrej Consumer Products Limited and foundations like Brihati Foundation powered by Claris , will provide accessible and affordable capital in the form of grants, returnable grants and loans to previously employed or self-employed workers and at-risk nano and micro enterprises to either restart and sustain their work or find alternative business opportunities. The facility is expected to reach between 60,000-100,000 workers and enterprises and will give preference to youth and women. REVIVE will also undertake upskilling activities for laid-off youth and informal sector workers.In a statement, Founder and CEO, Samhita , Priya Naik, said, “This will have a positive impact on economic activity, self-employment, and household consumption, giving families and small businesses the agency to pay their dues, buy daily business supplies and invest in protective gear and other operations to sustain and thrive.”“The United States and India have a long history of collaboration in the health and development areas, and our cooperative response to COVID-19 builds on this strong partnership. The COVID-19 pandemic has had a significant negative impact on the global economy, including India and its citizens. The impact on women and youth has been higher,” said Ramona El Hamzaoui, USAID/India Acting Mission Director, in a statement.Rahil Rangwala, Director, Michael & Susan Dell Foundation, added in a statement that, “COVID has displaced so many workers in the informal sector, and has had a tremendous impact on the economy. REVIVE is a powerful platform aligned with our goal to support programs that bring people back to a road to recovery and reignite the economy. “Siddharth Nautiyal, Partner, Omidyar Network India, said: “Through REVIVE, we aim to restore livelihoods with accessible and affordable capital thereby giving a much-needed impetus to small businesses and aiding economic recovery."The REVIVE Alliance will initiate partnerships with a range of stakeholders, including companies and foundations as fundraising partners, and business chambers, non-banking financial companies, social organisations and prominent sector influencers who will provide robust expertise and implementation support.Among the companies and foundations that have come onboard, Arvind Limited will support workers from the textile industry who have lost their jobs; Godrej Consumer Products Limited will support beautypreneurs; and Brihati Foundation powered by Claris will support farmers and street vendors. | the $6.85 million blended finance facility will provide access to affordable capital. it will provide grants, returnable grants and loans to previously employed or self-employed workers. the facility is expected to reach between 60,000-100,000 workers and enterprises. it will also undertake upskilling activities for laid-off youth and informal sector workers. the impact on women and youth has been higher, said the us agency. | Positive |
https://www.moneycontrol.com/news/business/stocks/buy-bandhan-bank-target-of-rs-425-emkay-global-financial-6103321.html | live bse live
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Emkay Global Financial's report on Bandhan Bank
Bandhan reported PAT of Rs9.2bn, significantly beating the estimate of Rs6.6bn, mainly due to lower opex and contained provisions as the heavy-lifting in terms of Covid-19-related provisions has largely been done. After additional Rs3bn Covid-19 provisions in Q2, the cumulative provisioning buffer stands strong at Rs17.4bn (2.3% of overall AUM/3.5% of MFI AUM). Overall collection efficiency (CE) in value terms improved to 91% in Oct’20 from 68% in Q1, and in customer terms to 95% vs. 67%, but improvement from Sep’20 levels has been relatively moderate due to some drag in Assam/WB. It expects CE to improve further in Nov/Dec’20 and believes that the current provisioning buffer should be largely sufficient to offset residual pain. The bank has unveiled a5-year asset diversification plan, with the share of MFI at 30% (vs. 62% now) and SME/mortgages each at 30%, which may affect blended loan yields. However, the bank has built a strong CASA base and is expanding in non-eastern markets to tap low-cost retail deposits, which should help protect margins in the long run.
Outlook
We like Bandhan Bank for its strong liability franchise, steady asset diversification strategy, recent moves to deepen management bandwidth and ability to manage asset quality disruptions across cycles with proactive provisioning strategy. Retain Buy/OW in EAP with a revised TP of Rs425 (based on 2.7x Dec’22 ABV).
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Read More | bandhan reported PAT of Rs9.2bn, significantly beating the estimate of Rs6.6bn. the cumulative provisioning buffer stands strong at Rs17.4bn (2.3% of overall AUM/3.5% of MFI AUM) overall collection efficiency (CE) in value terms improved to 91% in Oct’20 from 68% in Q1. the bank has unveiled a5-year asset diversification plan, with the share of MFI at 30% (vs. 62% now) and SME/ | Positive |
https://economictimes.indiatimes.com/markets/expert-view/uti-mfs-v-srivatsa-picks-2-sectors-for-next-one-year/articleshow/67256666.cms | Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Executive Officer Programme Visit IIM Lucknow IIML Chief Marketing Officer Programme Visit Indian School of Business ISB Chief Digital Officer Visit
In the near term, the number one uncertainty I see is the outcome of general elections,, EVP & Fund Manager-Equities attold ET Now in an interview.Edited Excerpts:If you look at the data points, India does seem to come out as an outlier, especially if you compare the performance with the global markets. But what I would like to highlight is that Sensex has been an outlier, but not most of the other indices. So if you look at even the BSE 200, there is a gap of 600 basis points between the Sensex and the BSE 200 performance in the last one year. So this goes to show that there is a lot of pain.In fact I would say 60-70 per cent of the stocks have underperformed the market, which is probably what you would loosely define a bear market. While the overall benchmark indices have been positive and have outperformed other markets significantly, but I would say for somebody who is managing money in India or who is an investor, he would probably be closer to thinking that this is actually a bear market that we are in. And coming to the next year, there would be a lot of uncertainty before the political elections or before the general elections, which would kind of compress the growth in the market and the market would be sideways. In fact it could be negatively biased given the huge negativity that we have been seeing in the global markets.If you look at a couple of sectors, the selloff has made them quite attractive. For example automobiles has been a very consistent performer over the last many-many years and the last six months or even the last one year it is for the first time the sector has underperformed the overall markets.Now on the longer term, I think the market is quite attractive in terms of low penetration and very good industry and very high cost competitiveness and an industry which by and large generates decent amount of free cash flow and ROCE. So the valuations have kind of come across for this sector in the last one year because of the huge underperformance and largely to on account of short-term demand factors which may not exist say after a year or so.So from a long-term perspective, we are looking at these kind of sectors which has done very well over a longer timeframe going through short term challenges and because of the valuation part we are getting it at a very reasonable valuation relative to the longer term history. The other sectors which could be looked at especially IT while it has done very well on a one-year timeframe but on the last three months because of the rupee appreciation, it has underperformed but here again the valuations are extremely reasonable. It is at a slight discount to the market. Again the sector generates huge free cash flow and more importantly has the mechanism of distributing the free cash flow back to the shareholders as well. And here again I think this also could be a very good hedge against any kind of political instability or any general elections outcome, because there are no much linkages to the Indian economy at all. So I think these are the couple of sectors which really looks good from the next one year perspective.In the near term the number one uncertainty I see is outcome of the elections. So to that extent there would be an increased allocation to sectors, which probably do not have much of a bearing on the local economy or even on the government policies. So an IT or a pharma could be a very good hedge against this.Second one from a valuation perspective is automobiles or even corporate oriented banks, especially in case of corporate oriented banks, where there is a clear trend of return to the kind of average profitability that these banks have enjoyed. And again while the valuations have increased moderately in the last one year because these banks have outperformed, but still they are cheap on a 10-15-year basis.Our focus is more on probably looking at on a medium term what sectors we are getting it at a very reasonable valuation and sectors which have delivered well in the past and again we see no reason why they cannot deliver this performance over the next three to four years. So if we are getting these sectors at a very reasonable valuation because of the global uncertainty and the local uncertainty, we will focus on that and to hedge our portfolio against any adverse outcomes of the elections, there could be a decent allocation towards IT and pharma, which could protect us in case the scenario turns adverse. | Sensex has been an outlier, but not most of the other indices. '60-70 per cent of the stocks have underperformed the market,' says evp & fund manager. 'the market is quite attractive in terms of low penetration and very good industry' 'the market is quite attractive in terms of low penetration and very good industry' | Positive |
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/bank-of-america-leases-4-lakh-sq-ft-office-space-in-gift-city-for-15-years/articleshow/79827665.cms | Mumbai: Bank of America has leased nearly 4 lakh sq ft of office space from the Savvy Group in Gujarat International Finance Tec-City (Gift-City), in one of the largest commercial real estate transactions during the pandemic period, said two people with direct knowledge of the development.The American multinational investment bank and financial services company had booked 1 lakh sq ft earlier, but then decided to extend it by an additional 3 lakh sq ft now. The space is spread over 14 floors of a 24-storey building that counts International Financial Services Centres Authority and Sequel Logistics as other key tenants.BA Continuum India, Bank of America’s India subsidiary, has leased the space for 15 years, with the agreement involving rental reset clause after every three years.“The transaction has been approved by the SEZ authority and was inked last week. The bank had earlier finalised around 1 lakh sq ft space in this building and has now concluded with a total nearly 4 lakh sq ft. This is the fastest and biggest expansion decision by the bank during the pandemic,” said one of the people mentioned above.The bank’s Global Business Services Center had leased some space in the building prior to the outbreak of pandemic.The total office space is expected to accommodate more than 3,000 employees serving its global subsidiaries.Most of these employees will be hired afresh.Nearly 1,200 of BA Continuum India’s employees were earlier expected to be operating from this building.ET’s email query to Bank of America remained unanswered until the time of going to press on Sunday.Savvy Group's Chairman & Managing Director Jaxay Shah declined to comment for the story.Started in 2004, BA Continuum India currently operates out of four Indian cities — Mumbai, Hyderabad, Chennai and Gurgaon — with over 20,000 employees.Located between Ahmedabad and Gandhinagar, Gift City is the first operational International Financial Services Centre (IFSC) in India.IFSCs are intended to provide companies with easier access to global financial markets, and to complement and promote development of financial markets in the country.According to reports, 18 IT and IT enabled services companies have applied for setting up units at the Gift City's multi-services SEZ.The entities setting up operations in the Gift City are eligible for a tax holiday for 10 consecutive years, besides no goods & services tax, stamp duty & registration charges. Additional benefits from the Gujarat government including a capital investment subsidy up to 25% and rental subsidy of Rs 3-8 per sq ft a month are also available. | bank of America has leased nearly 4 lakh sq ft of office space from the Savvy Group in Gujarat International Finance Tec-City. the space is spread over 14 floors of a 24-storey building that counts international financial services centres authority and sequel logistics as other key tenants. the bank had booked 1 lakh sq ft space in this building earlier, but then decided to extend it by an additional 3 lakh sq ft now. | Positive |
https://economictimes.indiatimes.com/markets/stocks/news/potential-stock-winners-and-losers-from-tuesdays-us-election/articleshow/78997246.cms | NEW YORK: Tuesday's presidential election between President Donald Trump and former Vice President Joe Biden could have dramatic effects on various stocks and sectors, and investors have spent months trying to identify potential winners and losers.A group of stocks seen benefiting from Biden's Democratic policies has outperformed those seen benefiting from Republican Trump. Over a two-month period that ended Wednesday, a "Biden basket" of stocks created by JPMorgan head of U.S. equity strategy Dubravko Lakos gained 4.5% versus a 16% drop for a "Trump basket."Here is a look at stocks that might fit best in a Biden or Trump portfolio:A strong "green energy" push expected under a Biden administration would support alternative energy stocks. Green energy stocks have already soared in anticipation of Biden and Democrats faring well on Tuesday. The Invesco Solar ETF climbed about 40% from roughly mid September to mid October, but has pulled back more recently.A Democratic sweep "would likely mean a large scale infrastructure bill that should be placed at the forefront of restarting the U.S. economy," Deutsche Bank International Private Bank said in a recent report.JP Morgan lists Vulcan Materials, Jacobs Engineering Group and Caterpillar among the infrastructure stocks in its "Biden basket."Analysts view a Democratic sweep as the surest path to a massive coronavirus relief package to help stimulate the economy. Such a package could especially benefit small-cap shares and finally fuel a long-awaited rotation into value stocks.A Biden administration is expected to ratchet down tensions in the U.S.-China tariff war."Improved trade would benefit exports, which would benefit many U.S. materials companies, including exporters of agricultural products and grains," Columbia Threadneedle Investments said in a recent presentation.U.S.-listed shares of major cannabis producers surged after the vice presidential debate, when Biden's running mate Kamala Harris said marijuana would be decriminalized at the federal level under a Biden administration. That prospect has boosted stocks in the sector.Along with higher corporate taxes, banks could face concerns over more regulations under a Biden administration. Banks in a second Trump term, "could see added tailwinds from a continued 'light touch' on regulation and a push to reduce taxes," Ameriprise Financial said in a report.JP Morgan lists Bank of America, Wells Fargo and Citigroup in its "Trump basket" of stocks.Should Biden win, analysts do see a silver lining for banks because they could benefit from a hefty stimulus package and potentially steeper bond yields.A Trump win "could lead to a friendlier tax and regulatory environment for the traditional energy industry," Allianz Global Investors said in a recent report.While Biden has made green energy a key plank of his agenda, Columbia Threadneedle Investments said "a ban on either new leases or new permits on federal lands for energy exploration would be a significant challenge for traditional U.S. oil and gas companies."Both parties are expected to continue regulatory pressure on tech companies, but Deutsche Bank International Private Bank says the sector was "one of the biggest benefactors" of Trump's tax reform and "is also likely to benefit from a softer stance on regulation and antitrust policies."According to Allianz, Democrats are "more likely to pursue changes in 'Big Tech' including breakups and additional regulations."A second-term Trump administration "would likely continue to benefit aerospace & defense," Ameriprise said in a recent report, noting that Trump would likely continue to seek higher spending on defense.While both political parties have sounded off against high prescription drug prices, a Biden victory that in particular is coupled with Democrats winning the Senate could send a shudder through the highly regulated healthcare sector, so there could be some relief if Trump is re-elected."A Democratic sweep in November could increase the pressure on drug makers post-election," according to Ameriprise. | a group of stocks seen benefiting from a biden administration outperformed those seen benefiting from a republican. a strong "green energy" push expected under a biden administration would support alternative energy stocks. a biden administration is expected to ratchet down tensions in the u.s.-china tariff war. | Positive |
https://www.moneycontrol.com/news/trends/like-a-boss-zerodhas-nithin-kamath-on-why-a-leader-needs-to-be-stoic-and-not-get-affected-by-things-in-business-that-one-cannot-control-5620731.html | Nithin Kamath is arguably the most successful fintech entrepreneur in India at present. Living in the southern part of Bengaluru Kamath is an outlier among the new generation tech entrepreneurs. He has built the country’s largest stock broking platform without raising a single penny from external investors.
Zerodha changed the rules of the game when it made trading 'brokerage free' back in December 2015 and has leveraged its technology platform to grow among young traders. Ask any aspiring entrepreneur in Bengaluru and they would die to spend an hour learning on how to build business from Kamath. He also spends quality time mentoring and investing in other startups through his Rainmatter programme. In a candid chat with Moneycontrol, Nithin Kamath talks about how he is as a leader and what drives him to be on the top of his game and stay ahead of competition always.
What time do you like to start work? Do you think business leaders need to be early risers or should work till late? I start the day at around 7 AM; glance at my emails and what has happened to financial markets around the world overnight.
About working early or late, thanks to selection bias, you can easily come up with theories to either get up early or work till late to succeed. The most important part here for everyone, and especially for leaders, is to sleep well and long enough (I struggle to get good sleep too). So choose whatever works best for you.
Where is the best place to prepare for leadership: at business school or on the job? At the job, for sure.
Describe your management style, especially with regards to your colleagues. I guess it’s being stoic. There are things in life and business that are out of your control; don’t let them affect you. Just do your best with the things that you can control. So I do whatever I can to help my colleagues, but don’t usually get affected by the results of the effort.
Are tough decisions best taken by one person or collectively? The toughest ones are those where the predictability of the results is the least. While a team can collectively think, I think one person should make the decision. Tough decisions are where it also is tough to get a unanimous opinion.
Do you want to be liked, feared or respected? Respected. | Nithin Kamath is arguably the most successful fintech entrepreneur in india. he has built the country’s largest stock broking platform without raising a single penny from external investors. he also spends quality time mentoring and investing in other startups. he also shares his tips for staying ahead of competition always. he also shares his tips for a successful entrepreneur. | Positive |
https://www.financialexpress.com/market/markets-snap-3-day-losing-streak-on-positive-global-cues/1964627/ | Indian equities ended the day in the green on Tuesday after declining for three straight sessions. The markets were up on firm global cues surrounding the initial success of Covid-19 vaccine trial in the US. However, the rally got sold into and the markets ended the day only marginally higher.
The benchmark Sensex was up by 167.19 points or 0.59% to close at 30,196.17. The broader Nifty50 was
up by 55.85 points or 0.63% to close at 8,879.1.
Foreign portfolio investors (FPIs) sold equities worth $175.42 million on Tuesday. G Chokkalingam, chief investment officer, Equinomics Research and Advisory, said, “The reason that the rallies are getting sold into is because the market fundamentals have not changed.
The virus cases are still rising and the country is still under lockdown. Even the 30% retracement from March 23
lows was not based on the fundamentals of the market.”
Siddhartha Khemka, head – retail research, Motilal Oswal Financial Services, said, “While the global cues have been positive, the Indian market has been weighed down by weak local sentiments. Further, the earnings season and the management commentaries so far has not been encouraging.”
According to the provisional data on the exchanges, FPIs bought equities worth $175.42 million on Tuesday whereas, domestic institutional investors bought equities worth $219.2 million. So far, India has been seeing foreign inflows for the month of May which is in contrast to March and April where the FPIs had pulled out $8.3 billion and $30.5 million, respectively.
Shares of Bharti Airtel rallied by 10.8% and touched their 52-week highs intra-day. This was a reaction to the company’s results where it had delivered a strong core performance.
Banking and financial stocks were yet again responsible for weighing the Nifty down during the day’s trading session. Nifty bank saw a decline of 0.49% and its biggest losers were Bank of Baroda, Bandhan Bank, Federal Bank, Punjab National Bank as well as IndusInd Bank.
The biggest gainers on the Nifty were Bharti Airtel, Adani Ports and SEZ, ONGC, Ultratech Cement Company, and Grasim Industries, while UPL, Vedanta, Reliance Industries, IndusInd Bank and Larsen and Toubro were among the biggest losers. | the benchmark Sensex was up by 167.19 points or 0.59% to close at 30,196.17. the broader Nifty50 was up by 55.85 points or 0.63% to close at 8,879.1. foreign portfolio investors (FPIs) sold equities worth $175.42 million. shares of Bharti Airtel rallied by 10.8% and touched their 52-week highs. | Positive |
https://www.businesstoday.in/current/economy-politics/modi-announces-package-for-land-and-labour-talks-about-make-in-india-20-amid-coronavirus-crisis/story/403652.html | KEY HIGHLIGHTS
PM announces support for land, labour as part of Rs 20 lakh crore financial package to revive the economy
Package would cover cottage industry, MSMEs, labourers, middle class and industries among others
Modi signalled that focus on infrastructure development will continue to make India preferred destination for foreign companies
Critics, however, took a jibe at Prime Minister's speech and talks of Make in India
Amid demand from industry to provide payroll support, Prime Minister Narendra Modi on Tuesday announced support for labour as part of Rs 20 lakh crore financial package to fight coronavirus and revive the economy.
While announcing the much-awaited package, he hinted that a lot of support would be directed towards lower-end of the society which include workers and farm sector.
He noted that the proposed package will focus on land, labour, liquidity and laws.
"It will cater to various sections including cottage industry, MSMEs, labourers, middle class, industries, among others," Modi said.
In his address to the nation, the Prime Minister indicated that government will focus on factors of production to ensure that costs of manufacturing comes down and India emerges as global production hub for companies.
Modi signalled that focus on infrastructure development will continue to make India preferred destination for foreign companies planning to shift their production from China. Policy experts said that Centre is working with states to ensure that land acquisition process is eased and made available to investors at concessional rates.
Prime Minister said that several bold reforms are needed to make the country self-reliant and negate the impact of coronavirus. These reforms include supply chain reforms for agriculture, rational tax system, simple and clear laws, capable human resources, and a strong financial system.
"These reforms will promote business, attract investment, and further strengthen Make in India," Modi said.
Critics, however, took a jibe at Prime Minister's speech and talks of Make in India saying the government had promised the same things when it launched its flagship scheme to promote India as a manufacturing hub in 2014.
"We had heard exactly the same things when Make in India was launched six years back. Today, common man was expecting Prime Minister to talk about their daily hardships but they were greatly disappointed," said a senior government functionary wishing not to be named.
Speaking days before the Lockdown 3.0 deadline ends on May 17, Modi said that the ongoing crisis had taught the importance of local manufacturing, local market and local supply chains.
"All our demands during the crisis were met locally," he noted. | prime minister Narendra Modi announces support for land, labour as part of Rs 20 lakh crore financial package. package would cover cottage industry, MSMEs, labourers, middle class and industries. critics take a jibe at prime minister's speech and talks of make in india. he said that reforms are needed to make the country self-reliant. | Positive |
https://www.businesstoday.in/markets/stocks/sensex-rises-nifty-holds-vedanta-powergrid-ntpc-top-gainers/story/301353.html | The Sensex and Nifty opened higher in trade today amid rising Asian markets on expectations of Federal Reserve holding rates this week amid signs of slower global growth.
While the Sensex rose 230 points higher at 36,193, Nifty rose 55 points to 10,860. Top Sensex gainers were Vedanta (4.85%) , PowerGrid (4.61%) and NTPC (4.21%). Hero MotoCorp (0.33%), Asian Paints (0.21%) and L&T (0.11%) were the top Sensex losers.
Top sectoral gainers were metal stocks with the BSE metal index rising 1.81%, BSE bankex (0.66%) and BSE bankex index (0.66%). Bank Nifty gained 155 points to 26,981.
Meanwhile, the mid cap and small cap indices were trading 0.57% and 0.32% higher in early trade. Market breadth was positive with 805 stocks trading higher compared to 387 falling on the BSE.
On a net basis, foreign portfolio investors (FPIs) bought shares worth Rs 861.94 crore on Friday, while domestic institutional investors (DIIs) were net sellers to the tune of Rs 302.52 crore, provisional data available with BSE showed.
Global markets
Asian markets rose on Monday on hopes that the Federal Reserve would re-evaluate its hawkish stance at a meeting later this week, following signs of slower global growth.
Japan's Nikkei 225 index added 0.8 percent to 21,536.85 and the Kospi in South Korea gained 0.3 percent to 2,074.51. Hong Kong's Hang Seng was up 0.3 percent at 26,178.87. The Shanghai Composite index rose 0.1 percent to 2,597.22. Australia's S&P ASX 200 was 0.6 percent higher at 5,635.50.
Shares were higher in Taiwan and Singapore but fell in Indonesia.On Wall Street on Friday, the S&P 500 lost 1.91 percent to 2,599.95, marking its lowest close since April 2.
The benchmark has dropped 11.3 percent from its Sept. 20 record close - the worst performance since it fell more than 14 percent between May 2015 and January 2016.
The biggest drag was Johnson & Johnson, which tumbled 10 percent for its biggest drop since 2002, after Reuters reported that the pharma major knew its baby powder was contaminated with cancer-causing asbestos.
Edited by Aseem Thapliyal
Watch video:
| Sensex rose 230 points higher at 36,193, Nifty rose 55 points to 10,860. top Sensex gainers were Vedanta (4.85%), PowerGrid (4.6%) and NTPC (4.21%) top Sensex losers were Hero MotoCorp (0.3%), Asian Paints (0.2%) and L&T (0.1%) | Positive |
https://www.financialexpress.com/market/share-market-live-updates-sensex-nifty-rupee-vs-dollar-ongc-bob-m-m-shares-03-jun-20019-monday/1596181/ | The benchmark indices ended on a higher note Monday led by the rally in auto stocks. Sensex rallied 553.42 points to end at a record high of 40,267.62, while Nifty jumped 165.75 points to 12,088.55. The benchmark indices ended on a higher note Monday lead by the rally in auto stocks. Sensex rallied 553.42 points to end at a record high of 40,267.62, while Nifty jumped 165.75 points to 12,088.55. Top Sensex gainers include Hero MotoCorp, Bajaj Auto, Asian Paints, IndusInd Bank, HUL, Maruti, Coal India, HDFC twins, RIL and TCS, rallying up to 5 per cent. Hero Motocorp, Bajaj Auto, Asian Paints, Indiabulls Housing, TCS, HCL Technologies, Reliance Industries, among others were leading gainers on Nifty50. Hero MotoCorp advanced about 6% and was the top gainer on both indexes. The Nifty Auto index rose over 2%.
Crude oil prices eased on Monday. The international benchmark for crude Brent fell more than 1 per cent today, extending losses from Friday amid the trade war between the world’s two largest economies- the US and China. The fresh threats by the US President to impose tariffs on Mexico has triggered further global slowdown fears. While the Brent crude was last seen at $61.34 per barrel, the US WTI was 0.71 per cent down at $53.12 per barrel. | Sensex rallied 553.42 points to end at a record high of 40,267.62. Nifty jumped 165.75 points to 12,088.55. top Sensex gainers include Hero MotoCorp, Bajaj Auto, Asian Paints, IndusInd Bank, HUL, Maruti, Coal India, HDFC twins, RIL and TCS. | Positive |
https://economictimes.indiatimes.com/news/defence/india-russia-ink-action-plan-for-second-nuclear-plant/articleshow/66094152.cms | Apple Rings Louder: Sept Qtr Sees Record Revenue in India Apple Inc set a new quarterly revenue record in India with a strong double-digit year-on-year growth in the September quarter, chief executive Tim Cook said on Friday, adding that the world’s second-largest smartphone market is a key focus for the Cupertino, US-based company where it currently has a low share.
Young & Restless Driving Change at Motown’s Luxe St Luxury car buyers in India are getting younger with two out of five Audi buyers aged less than 40. At Mercedes-Benz India, buyers have an average age of 38 years, the youngest for the German luxury carmaker globally. The scenario is similar at BMW India where consumers aged 35-40 contribute bulk of the sales. | apple set a new quarterly revenue record in india with a strong double-digit year-on-year growth in the September quarter. the world's second-largest smartphone market is a key focus for the cupertino, us-based company where it currently has a low share. luxury car buyers in india are getting younger with two out of five Audi buyers aged less than 40. | Positive |
https://www.financialexpress.com/india-news/once-among-the-five-weakest-economies-now-india-has-become-worlds-fastest-growing-economy-pm-modi/1449646/ | Prime Minister Narendra Modi Sunday said under his leadership the country has transformed into the world’s fastest growing economy by coming out of the category of ‘fragile five’, the five weakest economies of the world that were considered a threat to international economic order because of their weak economic fundamentals.
He was addressing the Bharatiya Janata Party’s (BJP) booth-level workers through video-conferencing and was speaking against the backdrop of the “#5yearchallenge” currently trending on social media platforms.
“Earlier, Indian governments used to remain in national and international headlines for scams. Nowadays, there is no discussion on scams, but on new schemes,” Modi said, adding that the country had moved from scams to schemes in the last five years.
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Five years ago, the world saw India as a nation from where news about scams, electricity shortage and financial crises emanated, the prime minister said.
This perspective, he added, had changed and the world now viewed the country with “vishwas” (belief and trust).
Touching on the topic of Maoist violence, Modi said the menace was once overpowering but now, had been contained and restricted to very few districts.
He added that the bravery of security forces and people’s support over the last five years had ensured that the nation had won the battle against Maoist violence.
Five years ago, there used to be headlines that the country did not have enough toilets, causing embarrassment to women, Modi said.
Now, nine crore toilets have been constructed and sanitation coverage in the country has gone up from 38 per cent (when the National Democratic Alliance came to power in 2014) to 98 per cent, he added.
There was a time when 70 crore Indians had to go without electricity due to the failure of the northern (power) grid, he said, adding that today, several crore households had received electricity connection.
The prime minister said the country’s economy, which had once faced the challenge of high inflation and low growth, was now witnessing a low inflation and high growth – a transformation that had happened over the last four-and-a-half years. | prime minister said india has transformed into the world's fastest growing economy. he said the country has come out of the category of 'fragile five'. five countries were considered a threat to international economic order. he said the country had moved from scams to schemes in the last five years. five years ago, there used to be headlines that the country did not have enough toilets, causing embarrassment to women. | Positive |
https://www.moneycontrol.com/news/business/markets/fii-comeback-india-modi-victory-4037031.html | Foreign investors who looked cautious in the run-up to the election results could step on the gas now on hopes of continuity of reforms, favourable business climate and the strength of the economy, which is still growing stronger when compared to other emerging markets (EMs).
In the current month, Foreign Institutional Investors (FIIs) have withdrawn more than Rs 4,000 crore till May 28, but they still remain net buyers in 2019 pouring in more than Rs 50,000 crore in Indian markets, data showed.
Prior to this, overseas investors had infused a net amount of Rs 16,093 crore in April, Rs 45,981 crore in March and Rs 11,182 crore in February in the capital market (both equity and debt).
Inflows in Indian markets halted in May largely on concerns over trade tensions between the US and China and uncertainty around general elections, suggest experts. However, they add that India is still one of the most stable economies when compared to other emerging markets which should prompt FIIs to invest in the country.
Mark Mobius, Founding Partner of Mobius Capital Partners in an interview with CNBC-TV18 last week expressed relief that India was doing better than China.
"China has the biggest weight of 30 percent in the emerging market basket and India has less. But I hope India's market capitalisation will go up," he said. Mobius said he started investing two months ago. "We like some companies in finance, cement, piping, cable, etc."
Foreign investors may remain cautiously optimistic on what Modiu government will deliver in its second term, but experts are fairly confident of FIIs turning net buyers in Indian equity market with a rise in ownership.
FPI ownership in BSE 200 is at 24.1 percent as of March 2019, which shows that as a group they have a substantial interest in the Indian equity market.
In the last four out of five years, FIIs pumped in money with the exception only of 2018 when they withdrew ~$4.5 billion, Hemang Kapasi, Portfolio Manager-Equity, Sanctum Wealth Management told Moneycontrol.
“In the first four years, they had invested $30.27 billion, hence, overall they have invested ~$26billion in the last five years in the Indian equity market. Also, in CY19, they have already invested~$9.76 billion by April end,” he said.
Kapasi further added that FII should continue to invest in Indian markets as they always look for political as well as economic policy stability. | foreign investors have poured in more than Rs 50,000 crore in india in 2019. inflows in india halted in may largely on concerns over trade tensions between the us and china. but experts are fairly confident of FIIs turning net buyers in the country. FII ownership in the BSE 200 is at 24.1 percent as of march 2019. | Positive |
https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/house-panel-for-abolition-of-ltcg-tax-on-investments-in-startups/articleshow/78127758.cms | A Parliamentary panel has batted for the abolition of long-term capital gains (LTCG) tax for all investments in startups which are made through collective investment vehicles such as angel funds, alternate investment funds and investment Limited Liability Partnerships.The former minister of state for finance Jayant Sinha headed Standing Committee on Finance in its report tabled on Tuesday said the tax should be removed at least for the next two years to encourage investments amid the pandemic.It also recommended that the exemption for income on investments made before March 31, 2024, subject to the investment being held for a period of at least 36 months as incentivised in the Finance Act, 2020, should be provided to long-term and patient capital invested across all sectors.Noting that businesses are stressed for liquidity and valuations of businesses have softened due to the Covid-19 pandemic, it also said the pricing guidelines prescribed under the various laws and regulations by SEBI , Income Tax Act, Companies Act, FEMA should be made more consistent to provide a certain, coherent and simple framework for facilitating large-scale investments in India."The Committee would like to strongly recommend that tax on Long Term Capital Gains be abolished for all investments in startup companies (as designated by DPIIT) which are made through collective investment vehicles (CIVs) such as angel funds, AIFs, and investment LLPs," the committee said in its report "Financing The Startup Ecosystem".India's startup sector welcome the recommendation of abolishing long term capital gains (LTCG) in startup investments. Industry leaders said that the move would open the floodgates for Rupee (domestic) capital to flow into the sector, which has been sorely lacking."These reforms would open the floodgates of domestic capital going into start-ups like never before, as long as the eligibility criteria of the tax benefits is not too narrow, enabling the widest set of startup investors and companies to benefit for a long enough period of time," said Kunal Bhal, cofounder and CEO at Snapdeal.Others pointed out that removing LTCG or bringing it at par with taxation of gains made through listed securities on the secondary market, has been one of the most long standing asks of the industry."The Parliamentary Panel has given voice to a longstanding ask of the Indian startup ecosystem. Investments into startups are in the form of primary investments into the company, which in turn generates new assets, economic growth and jobs. These measures, if adopted, will help accelerate the Indian startup ecosystem and allow them to meet the PM's goal of startups contributing 20% of India $5 trillion GDP by 2025," said Siddarth Pai, founding partner at 3one4 Capital & co-chair Regulatory Affairs Committee at IVCA.The panel recommended that after this two year period, the Securities Transaction Tax (STT) may be applied to CIVs so that revenue neutrality is maintained.Investments by CIVs are transparently done and have to be done at fair market value, the Standing Committee said, adding that it is easy to calculate the STT associated with these investments."This can be done in lieu of imposing LTCG on these CIVs and to make the taxation system fairer, less cumbersome, and transparent. This will also ensure that investments in unlisted securities are on par with investments in listed securities," it said.At present, LTCG earned by foreign investors in private companies attracts taxation at concessional rate of 10%, in comparison to the domestic VC/PE investments being taxed at 20% (for LTCG) with an enhanced surcharge of 37%. The panel also proposed that the sectors in which Foreign Venture Capital Investor (FVCIs) are allowed to invest should be expanded to include all sectors where Foreign Direct Investment (FDI) is permitted, as this route provides a flexible investment framework and hence will be able to attract significant capital in the economy."There is now a need to allow issuance of hybrid securities, which bear characteristics of both debt and equity under the FDI route, at least for a limited period to enhance the fund-raising capabilities of the companies to raise capital at commercially suitable terms in this difficult time," it said.The committee also recommended that the exemption for income on investments made before March 31, 2024, subject to the investment being held for a period of at least 36 months as incentivised in the Finance Act, 2020, should be provided to long-term and patient capital invested across all sectors.It also said that there is a need for AIFs to be allowed to be listed on capital markets, thereby creating permanent source of capital for the startup ecosystem besides creating more domestic Development Financial Institutions (DFIs) on the lines of International Finance Corporation (IFC) and The German Investment and Development Company (DEG).The committee said that India needs to reduce the startups' dependence on foreign funds as capital going into India's unicorns comes mainly from foreign sources such as the US and China. Currently more than 80% of capital going into India's unicorns comes from foreign sources. China has investment of over Rs 30,000 crore in India's growth companies and currently invested in 18 of 30 unicorns.It said India needs to become self-reliant by having several large domestic growth funds powered by domestic capital to support India's unicorns and suggested that Small Industries Development Bank of India (SIDBI) Fund-of-Funds vehicle should be expanded and fully operationalised/utilised to play an anchor investment role.The panel said domestic risk capital should not be punished at any level while observing that the current tax disparity was proving advantageous to foreign capital through low tax jurisdictions and low taxes for fund management services.As per the panel, such a move will establish a level playing field for domestic investments in comparison to foreign investments and domestic listed in comparison to unlisted securities.The committee recommended that CIV capital gains should always be taxed at the same rate as listed securities to encourage domestic investments in unlisted debt and equity securities.As per the report, large financial institutions in India should be encouraged to channelise a proportion of their investible surplus into domestic to bring in "much-needed" additional domestic capital for startup investments.The panel suggested that Pension Fund Regulatory and Development Authority and National Pension Scheme be encouraged to invite bids from professional fund managers for running a fund-of-funds programme on which SIDBI would be eligible to participate while major banks should join hands to float a fund-of-funds.For insurance companies (both life and non-life), it said, they must be given latitude to invest in fund-of-funds by IRDAI as well as directly in VC/PE funds along with a higher exposure cap and that investments by insurance companies in AIFs must be carved out under a separate category while calculating the applicable exposure limits and not clubbed with other investments under 'unapproved investments'.Foreign Development Finance Institutions may also be encouraged to participate with local asset management companies to set up fund-of-funds structure or direct VC/PE funds, particularly in social impact, healthcare and venture/startup sectors. | a panel has batted for the abolition of long-term capital gains (LTCG) tax. the tax should be removed at least for the next two years. industry leaders say the move would open the floodgates of domestic capital. the panel's report is a long standing ask of the Indian startup ecosystem. a spokesman for the panel says the panel is "deeply concerned" | Positive |
https://www.financialexpress.com/economy/record-kharif-sowing-to-lift-farmers-income-agri-economy-27-lakh-farmers-already-benefit-from-msp/2137172/ | The record sowing during the Kharif season is likely to boost farm income, and eventually, support the agricultural economy amid the pandemic. Early indications show a healthy start to the procurement season that began in October, said a report by ICRA. While the bumper sowing kept the farm sentiments resilient, the same had to be supplemented by active procurement of rice at a minimum support price (MSP) by the government agencies to support farmer’s income, the report added. Paddy, being one of the most important staple crops in India, has seen a continuous rise in MSP over the years, growing at a CAGR of 6.8 per cent over the last decade.
Paddy procurement by government agencies
While the increased MSP is positive for farmers as it leads to improved price realisations and income for them, the benefits of the same are contingent upon the extent of procurement done by the government agencies. “Paddy procurement for Kharif 2020-21 is continuing smoothly in the procuring states & UTs with purchase of over 304 LMTs of paddy up to 24 November 2020, said the Ministry of Agriculture & Farmers Welfare. This is an on-year increase of 17.82 per cent against the last year corresponding purchase of 258.02 LMT. Out of the total purchase of 304 LMT, Punjab alone has contributed 202.38 LMT, which is 66.57 % of total procurement, the ministry added.
The government further said that about 27.18 lakh farmers have already benefited from the ongoing KMS procurement Operations with the MSP value of Rs 57,395.74 crore. It is believed that due to the improved income as well as policy support in the form of various government schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA), the PM-Kisan Samman Nidhi, and so on, the resilient and surging farm sentiments are likely to continue.
Food inflation weighing heavy on common man’s pocket
Meanwhile, the information on retail prices on a daily basis from the Ministry of Consumer Affairs, Food and Public Distribution (Department of Consumer Affairs) indicate that food price pressures that have persisted since the beginning of the financial year continued unabated in the month of October as well, barring prices of cereals, tomato and sugar, RBI said in its November bulletin. In particular, inflation-sensitive prices of onions and potatoes have ruled at unrelentingly high levels during the month, it added. Retail inflation grew at 7.61 per cent in October while food inflation rose at a humongous 11.07 per cent in the same duration. | early indications show a healthy start to the procurement season that began in October. but the same had to be supplemented by active procurement of rice at a minimum support price (MSP) by the government agencies. paddy, being one of the most important staple crops in india, has seen a continuous rise in MSP over the years. the government said about 27.18 lakh farmers have already benefited from the ongoing KMS procurement operations. | Positive |
https://www.financialexpress.com/economy/economic-slowdown-cyclic-in-nature-right-time-to-invest-in-india-piyush-goyal/1736134/ | Commerce Minister Piyush Goyal on Tuesday said India and the US do not have any trade disputes and both nations have huge bilateral trade and investment potential. Speaking during a ministerial panel discussion at India Energy Forum here, Goyal said, “There is no (trade) dispute (with the US). We had certain disagreements, but I dont think that there is… any relation where there are no disagreements at all. I think we welcome some ‘nok jhok’ (argument). Little bit of uncertainty helps in taking things forward.”
Goyal’s comments assumes significance in view of recent withdrawal of Generalized System of Preferences (GSP) or trade tariff incentives on Indian products by the US, especially when both countries are negotiating a trade agreement.
Also read: How to make IBC fool-proof: Govt crowd sourcing for ideas as delays hit insolvency resolutions
Goyal was of the view that his discussion with his US counterpart helped improve the bilateral relations further. Referring to the withdrawal of GSP by the US, Goyal said, it could be a “dispute in the eyes of some, but I think it opened up an opportunity for me to have a dialogue with my colleague (US trade representative). We had some wonderful discussions.”
About the business potential with US Energy firms he said, “There is huge potential on the gas side and also in nuclear energy. The US and India have a robust relationship, which has huge potential going forward… We should not look at incremental growth in our relationship. We should be looking at a quantum leap. We have set half-trillion-dollar (trade) target (with the US).”
Goyal said that there is huge potential of energy exports from the US to India and business is going on with the US on oil, gas and nuclear fronts. Total Indo-US trade in 2018-19 was around USD 88 billion. On the imposition of anti-dumping duty on imports by Directorate General of Trade Remedies, he said that it is a quasi-judicial body and has nothing to do with the government. | the two nations have huge bilateral trade and investment potential. goyal said there is no (trade) dispute (with the US) he said there is huge potential of energy exports from the US to India. the total Indo-US trade in 2018-19 was around USD 88 billion. he said that there is huge potential of energy exports from the US to India. | Positive |
https://www.moneycontrol.com/news/india/pradhan-mantri-matsya-sampada-yojana-fm-sitharaman-reserves-rs-20000-crore-for-fishermen-5272791.html | File image
Finance Minister Nirmala Sitharaman on May 15 said an amount of Rs 20,000 crore will be reserved for the welfare of fishermen through the Pradhan Mantri Matsya Sampada Yojana (PMMSY)
Sitharaman was addressing a press conference to announce the third tranche of the economic stimulus package covering agriculture, fisheries and allied activities.
PMMSY scheme will be launched for integrated sustainable and inclusive development of marine and inland fisheries.
Rs 9,000 crore has been reserved for the development of infrastructure in fishing harbours, cold chains as well as markets.
The registration of the 242 shrimp hatcheries and rearing hatcheries have been extended for the next three months while marine capture fisheries and aquaculture has been relaxed to cover inland fish farming.
The scheme is expected to help with providing employment to over 55 lakh people and increase production to 70 lakh tonnes over the next five years. This is also expected to result in exports doubling to Rs 1 crore.
The FM also said that all COVID-19 related deadline extensions have been honoured including overseas contracts. | third tranche of economic stimulus package to be launched for agriculture, fisheries and allied activities. scheme is expected to provide employment to over 55 lakh people. it is expected to increase production to 70 lakh tonnes over the next five years. the scheme is expected to result in exports doubling to Rs 1 crore. 'all COVID-19 related deadline extensions have been honoured including overseas contracts,' he said. | Positive |
https://www.moneycontrol.com/news/business/markets/d-street-buzz-pharma-stocks-shine-cadila-laurus-labs-biocon-shares-jump-up-to-15-5115001.html | Most pharma stocks were trading with strong gains in morning trade on April 7, keeping their sectoral index on BSE in the higher territory.
Around 1:15 hours, the BSE Healthcare index was 5.20 percent up at 13,039.55. Shares of Morepen Labs, Cadila, Laurus Labs, Hikal, Lupin, Biocon and Sun Pharma were trading with strong gains.
Pharma stocks have been gaining of late as industry experts and brokerages believe that the sector is better placed to navigate the crisis during COVI-19 outbreak even though the challenges faced by it are all same.
"We remain confident on the strong demand scenario from both domestic and export markets. Also, believe that these disruptions would not be meaningful from a full-year earnings perspective as the benefits of weaker currency could bridge the gap," brokerage firm Centrum Broking said in a report.
Centrum says the export market will experience some price increases amid shortages and demand increase for generic drugs. However, it expects some impact on the Q1FY21 Indian pharmaceutical market (IPM) growth.
Brokerages do not see a meaningful adverse impact of the lockdown, which is in its second week, on the earnings of pharma players.
"With China resuming supplies of raw materials, potential disruption in manufacturing is now no longer a concern. There has been inflation in select raw material supplies but the same should only have a minor impact on gross margins during the quarter," brokerage Nirmal Bang said.
"The India pharma market growth continues on expected lines – high single-digit. In the US, we could see marginal benefit coming from dollar appreciation and a potential increase in the stocking at the wholesaler level which should be offset by currency depreciation in emerging markets due to declining crude prices."
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. | pharma stocks are trading with strong gains in morning trade on thursday. the BSE Healthcare index was 5.20 percent up at 13,039.55. industry experts believe the sector is better placed to navigate the crisis. the lockdown is in its second week and could not affect earnings of pharma players. a pharma lockdown could also have a negative impact on the pharma industry. | Positive |
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