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Unlock Leadership Excellence with a Range of CXO Courses Offering College Course Website IIM Lucknow IIML Chief Marketing Officer Programme Visit IIM Lucknow IIML Chief Operations Officer Programme Visit Indian School of Business ISB Chief Technology Officer Visit This is an unusual crisis and it has been severe. It has been completely a new territory for many of us. We do not know how the pandemic will evolve and how it will end. We have very less view on how people will respond and what policy responses are likely to happen in order to reconstruct our lives. So to your question about what we have been hearing from our clients and customers; I think the impact has been severe not in small measure because the lockdown in India has been equally severe compared to some of the advanced economies. And it is always the case that a crisis exacerbates over known vulnerability.I think one of the things I must point out is that even before we entered the pandemic situation, our economy was weakening. The financial system also was trying to find its feet. So several countries have had their own responses. I think for India, it has become particularly idiosyncratic because the hardships are higher and the health capacity is weaker. Our own ability to enforce restrictions is circumspect. So this is on top of people’s mind that the crisis has been weakening their growth profile much more than anticipated.First of all, the impact is multi-sectoral. As you point out, there are some sectors for which it will be a multi-year recovery path if at all and for some, hopefully as we get into Q2 of this year, we could see them come to their original growth trajectory. If you look at power generation, despite the onset of summer, it has taken a hit. If you look at railway freight, that has come down. If you look at fuel consumption, that is badly hit. If you look at it and you talk about industrial trade, much of where the economy is Maharashtra, Delhi, Tamil Nadu, Punjab, I think they have seen major economic losses.Even if you look at states like Kerala, Karnataka, Haryana where they have seen a faster recovery cycle, my sense is that while there the pace of recovery could be contingent on some pent up demand, our own sense is that there will be precautionary increase in savings, reduction in discretionary consumption and specifically on sectors that you mentioned like travel, recreational services and aviation industry. So I think the viewpoint that this is a difficult road of recovery, there are surely signs of that.We should put the response in a broad bucket. First and foremost, there is a health and safety response that the government and both public and private sector companies will be engaged in. Then there is the response in terms of social insurance. Several markets have talked about something in terms of a payout not necessarily income dependent and we could talk about a few markets where we have seen this happen. And the third bucket is in terms of stimulus. So the health response, the social insurance response and then the stimulus are three things.If you look at Asia Pacific , if I could use that as a context in terms of how the other markets are responding to it, I think there are both monetary as well as fiscal responses. I think none of the central banks in the region have been sitting idle. In India, there have been rate cuts across the board, in Australia and New Zealand it is possibly the case that they have reached the lower bound as the rates are already low; so their response has been largely in terms of the fiscal. And on the fiscal side, the governments have also been scaling up. So if you look at Australia, they have announced something to the tune of 11% of their GDP, New Zealand around 4-5%, Korea stimulus is similar to ours thus far, which is about 1-1.5%.But the key learning or observation is that countries which have got low reliance on foreign inflows, where there is high foreign reserves and low inflation, can think of the template that the large economies used for the great financial crisis of 2008 in terms of QE. But markets like ours where that is not necessarily established, I think our response will therefore be very calibrated. That is what we have been observing. Summarise this report in a few sentences.
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despite the onset of summer, power generation has taken a hit. railway freight has taken a hit and fuel consumption has come down. despite the onset of summer, power generation has taken a hit. despite the onset of summer, power generation has taken a hit. despite the onset of summer, railway freight has taken a hit.
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New Delhi : Markets regulator Sebi is likely to come out with stricter rules for liquid mutual funds following the liquidity squeeze triggered by the Infrastructure Leasing & Financial Services (IL&FS) default, senior officials said Monday. Among the measures, the regulator is considering a short lock-in period for investments in liquid funds and allowing segregation of papers in default and illiquid ones from the ones that are liquid. This would create two funds -- one with bad papers and another holding good papers, they added. Besides, Sebi is looking to make it mandatory for liquid funds to mark to market the value of all bonds that have maturity of 30 days or more. At present, fund houses need to consider the mark-to-market value of securities with a maturity of 60 days or more. These steps are expected to be discussed at the Sebi-appointed mutual fund (MF) advisory committee meeting on Monday. After that, the regulator may come out with a consultation paper before putting in place final regulations, the officials said. “The short lock-in period for investments in liquid funds may impact institutional investors," Quantum Mutual Fund Managing Director and CEO Jimmy Patel said adding that liquid funds are very sought after by institutional investors as there are no restrictions on entry or exit. Besides, institutional investors prefer to park their money in such funds due to higher liquidity of the schemes, he added. “A large part of audience for liquid funds is institutional investors like corporates, banks, etc. So, a change in the lock-in period impacts such institutional investors the most. At the same time, the retail investors could stand to gain as a result of more stable NAVs (net asset value)," said Aditya Bajaj, head --savings and investments -- at BankBazaar.com. “Large, unpredictable inflows and outflows from institutional investors impact liquid fund NAVs in a big way. If this can be arrested in some way, it could help stabilise the NAVs somewhat," he added. According to Bajaj, the move to introduce a lock-in period for liquid MFs is probably proposed to somewhat de-risk the industry from sudden knee-jerk reactions taken by investors in times of stress events. However, if done in isolation, it may not yield the expected results. There are other categories of funds like floater funds, which also need to be kept in mind while framing the rules for liquid fund lock-in as institutional investors may seek other avenues for investing if their primary requirement of daily liquidity is not met through mutual fund liquid funds, he added. The mutual fund industry, which has 42 strong members, manages assets to the tune of over ₹ 22 lakh crore. Of this, liquid funds have an AUM (asset under management) of ₹ 4.5 lakh crore. IL&FS and its subsidiaries have defaulted on several debt repayments recently due to liquidity crisis. The company as of March 2018 owed over ₹ 91,000 crore to banks and other creditors. On October 1, the government superseded the board of IL&FS and appointed a new board, with banker Uday Kotak as its executive chairman. (This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed) Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Topics Summarise this report in a few sentences.
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sebi is considering a short lock-in period for investments in liquid funds. it is also considering allowing segregation of papers in default and illiquid ones. the move is likely to de-risk the industry from sudden knee-jerk reactions. the regulator is also looking to make it mandatory for liquid funds to mark to market the value of all bonds.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk Interest Rate Risk: With the exception of our revolving credit facility, for which the interest rates are periodically reset, our debt has been issued at fixed rates. For fixed-rate debt, changes in interest rates affect the fair value of the debt instruments but do not directly affect our earnings or cash flows. The following table presents market risk associated with our fixed-rate, long-term debt at December 31 (in millions, except interest rates): At December 31, 2020, we had $130.0 million of variable-rate debt outstanding at a weighted-average interest rate of 1.39%. A 1.00% increase in interest rates would increase our cash payments for interest on our variable-rate debt by $1.3 million on an annualized basis. At December 31, 2019, we had $295.0 million outstanding under variable-rate agreements at a weighted-average interest rate of 3.00%. Commodity Risk: Our pipelines do not take title to the natural gas and NGLs which they transport and store, therefore, they do not assume the related commodity price risk associated with the products. Credit Risk: Our credit exposure generally relates to receivables for services provided, as well as volumes owed by customers for imbalances or gas lent by us to them, generally under PAL and certain firm services. Natural gas price volatility can materially increase credit risk related to gas loaned to customers. We also have credit risk related to customers supporting some of our growth projects. If any significant customer of ours should have credit or financial problems resulting in a delay or failure to pay for services provided by us or repay gas they owe to us, this could have a material adverse effect on our business, financial condition, results of operations or cash flows. As of December 31, 2020, the amount of gas owed to our operating subsidiaries due to gas imbalances and gas loaned under PAL and certain firm service agreements was approximately 11.2 trillion British thermal units (TBtu). Assuming an average market price during December 2020 of $2.45 per million British thermal unit (MMBtu), the market value of that gas was approximately $27.4 million. As of December 31, 2019, the amount of gas owed to our operating subsidiaries due to gas imbalances and gas loaned under PAL and certain firm service agreements was approximately 12.8 TBtu. Assuming an average market price during December 2019 of $2.08 per MMBtu, the market value of that gas at December 31, 2019, was approximately $26.6 million. As of December 31, 2020 and 2019, there were no outstanding NGL imbalances owed to our operating subsidiaries. Item 8. Summarise this report in a few sentences.
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A. Quantitative and Qualitative Disclosures About Market Risk provides information about the market risk associated with our fixed-rate, long-term debt and commodity and credit risk. At December 31, 2020, we had $130.0 million of variable-rate debt outstanding at a weighted-average interest rate of 1.39%. A 1.00% increase in interest rates would increase our cash payments for interest on our variable-rate debt by $1.3 million on an annualized basis. Our pipelines do not take title to the natural gas and NGLs which they transport and store, therefore, they do not assume the related commodity price risk associated with the products. We also have credit risk related to customers supporting some of our growth projects. As of December 31, 2020, the amount of gas owed to our operating subsidiaries due to gas imbalances and gas loaned under PAL and certain firm service agreements was approximately 11.2 TBtu, with a market value of $27.4 million.
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Domestic pharma companies have the potential to grow their revenue from the US by almost five times at around USD 30 billion from USD 6.5 billion in 2018 if they properly tap just 10 of the widely consumed drugs in the world’s largest drug market, according to an analysis by the World Trade Centre. Despite being the largest export market for domestic pharma makers, they served only a miniscule 5.6 per cent or USD 6.5 billion of the over USD 116 billion American pharma imports of in 2018, show the WTC data. Despite having good demand from across the markets, primarily due to lower prices and easy availability, India controls only 2.4 per cent of global pharma exports. With robust manufacturing capabilities, domestic pharma companies have the potential to enhance their exports to the US by almost five times to USD 29.6 billion, says the WTC in a note quoting data from the UN’s International Trade Commission. The WTC has identified 10 products that constitute about 25 per cent of American pharma imports in 2018 at USD 29.6 billion which constitute about 17 per cent of US imports from India. These ten products include single vitamins, medicaments affecting central nervous system, cough & cold preparations, dermatological agents & local anesthetics, chemical contraceptives, sterile surgical catgut, antineoplastic & immunosupressive medicaments, and structural analogues among others. These 10 products constitute around 25 per cent of American drug imports and but the share of Indian companies in 2018 was only worth USD 1 billion. Domestic pharma companies shipped products worth USD 6.53 billion in 2018 to the US, which was only 5.61 per cent of total American imports worth USD 116.35 billion, showed WTC data. Summarise this report in a few sentences.
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domestic pharma companies have the potential to increase their revenue from the us by almost five times to USD 29.6 billion. despite being the largest export market for domestic pharma makers, they served only a miniscule 5.6 per cent or USD 6.5 billion of the over USD 116 billion american pharma imports of in 2018. domestic pharma companies shipped products worth USD 6.53 billion in 2018 to the us, which was only 5.61 per cent of total american imports worth USD 116.35 billion.
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Pakistan and China on Friday dismissed the US’ criticism of the multi billion CPEC and the issue of “predatory loans”, saying it was an important cooperation project between the two nations who are all-weather friends. The US’ top diplomat for South and Central Asia Alice Wells on Wednesday said that at a time when the world is reeling from the economic consequences of having shut parts of the economy due to the coronavirus, it is really incumbent upon China to take steps to alleviate the burden this ?predatory, unsustainable and unfair? lending is going to cause to Pakistan. Responding to the remarks of Wells, who has been critical of the USD 60 billion China-Pakistan Economic Corridor (CPEC), Pakistan’s Foreign Office said that its total public debt relating to the CPEC projects is less than even 10 per cent of the total debt. Moreover, the public debt obtained from China has a maturity period of 20 years and the interest is 2.34 per cent. If grants are included, the interest value slides down to about two per cent. The claims made by some of the commentators and public officials on Pakistan’s debt obligations relating to the CPEC are contrary to the facts,? it said in a statement. The FO reiterated that the CPEC, a long-term project, helped address development gaps in energy, infrastructure, industrialisation and job creation. Pakistan and China have several mechanisms to discuss matters of mutual interest. Both countries are regularly in touch to address those issues bilaterally,? it said. The CPEC, a flagship project of the Belt and Road Initiative (BRI) of China, is a transformational project contributing positively and transparently to Pakistan’s national development, the FO said, adding it believes that the regional economic connectivity will provide a critical stimulus for creating a broad-based growth across the region. The BRI is a multi-billion dollar initiative launched by Chinese President Xi Jinping when he came to power in 2013. It aims to link Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network of land and sea routes. India has protested over the CPEC which is being laid through Pakistan-occupied Kashmir. The FO reiterated that Pakistan and China are ?All-Weather Strategic Co-operative Partners?. We are engaged in prompting peace, development and stability in the region based on the principles of mutual respect, mutual benefit, win-win cooperation and shared development. Our ties are based on deep mutual trust and understanding,? it said. Meanwhile in Beijing, Chinese Foreign Ministry spokesman Zhao Lijian accused the US of ?distorting and smearing? mutually beneficial cooperation between China and South Asian countries. Wells had also said that the US hopes Nepal will accept USD 500 million from the Millennium Challenge Cooperation, a US Government foreign aid agency. She hoped Nepal doesn’t take dictation from China. Reacting to her remarks on Pakistan and Nepal, Zhao said the comments reflect the US’ ?narrow mindedness and bias.? ?China and South Asian countries are good neighbours, good friends and good partners. With mutual respect, equality and joint development, we help these countries enhance their development capabilities,? he said. Based on their needs, we provide financial support and launch cooperation projects. We never impose on them or attach any political strings. We never ask them to prove anything,? he said. On Thursday, the Chinese embassy in Islamabad rejected the remarks of Wells, saying ?we need no teachers, especially a teacher like the US?. It said that China will “never force Pakistan to pay back debts” and that “China’s loans have no strings attached”. The embassy also asked the US that it should not comment on China’s ties with Pakistan as Beijing had no intention on commenting on Pakistan-US relations. It said that the CPEC is an important cooperation project between the governments of China and Pakistan. It has always adhered to the principles of mutual benefit, win-win cooperation, openness and transparency. “The planning and implementation of the projects are carried out by the two sides through thorough consultations based on equality and scientific study. The Chinese companies under the project are all leading companies in their respective sectors and operate in full compliance with local laws and regulations,” the embassy said. It claimed that the CPEC has so far brought USD 25 billion in direct investment and created more than 75,000 jobs in Pakistan, adding that China was the major source of foreign direct investment for Pakistan in the past five consecutive years. “In the next stage of the project, both sides will strength cooperation on healthcare, industrial development, agriculture and education. The CPEC will give a new impetus to Pakistan’s economic revival even in the post COVID-19 period,? the embassy said. Wells had also commented on the CPEC in November 2019, when she said that the project was harmful as it would take a toll on Pakistan’s economy in the future. Summarise this report in a few sentences.
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the US’ top diplomat for south and centralasia Alice Wells said it is incumbent upon China to take steps to alleviate the burden this?predatory, unsustainable and unfair? lending is going to cause to Pakistan. the claims made by some commentators and public officials on Pakistan’s debt obligations relating to the CPEC are contrary to the facts. the CPEC is a flagship project of the Belt and Road Initiative (BRI) of china.
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Geneva: Swiss voters on Sunday rejected a plan to impose the world's strictest corporate responsibility rules, which would have made multinationals headquartered in the country liable for abusive business practices worldwide.The proposal would have amended the Swiss constitution and forced such companies to ensure they and their suppliers respected strict human rights and environmental protection standards.The initiative was launched by an alliance of 130 non-governmental organisations as part of Switzerland's system of direct democracy , and had the backing of trade unions and church groups.But voters in a majority of Swiss cantons rejected the initiative, according to exit polls.The initiative was opposed by both the government and parliament, which warned that while its intention was good, the proposed legislation went "too far".The rejection by voters automatically activated the government's counter-proposal, which also requires companies to report on rights, environmental protections and corruption issues -- but without being liable for violations.Supporters of the rejected initiative plastered Swiss towns and cities with posters highlighting environmental degradation and human suffering caused by Swiss companies.Campaigners also underscored how pesticides long banned in Switzerland are still sold by agrochemicals giant Syngenta in developing countries, and deplored small-particle pollution spewed from a cement plant owned by LafargeHolcim in Nigeria.Multinationals are important drivers of the Swiss economy, which at the end of 2018 counted close to 29,000 such corporations, accounting for more than a quarter of all jobs in the country, according to official statistics.The Swiss business community , along with the government and parliament, argued that the proposed constitutional amendments could have been detrimental for all Swiss companies, not just those that behave badly.Businesses and employer organisations voiced particular concern over a provision that would have made Swiss-based businesses liable for abuses committed by subsidiaries unless they could prove they had done required due diligence.While backers of the rejected initiative acknowledged that most companies respect rights and environmental protections, they insisted that voluntary measures were not enough to bring the rest in line. Summarise this report in a few sentences.
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voters in majority of cantons reject proposal to impose strict corporate responsibility rules. proposal would have made multinationals headquartered in the country liable for abuses. supporters of the initiative say it is good but goes "too far". backers say it would have made companies liable for abuses committed by subsidiaries. backers say voluntary measures are not enough to bring the rest in line.
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The government has allocated a grant of `60 crore to farmers for developing onion chawls (warehouses) for storage of the commodity under the Rashtriya Krishi Vikas Yojana (RKVY) 2019-20. The central government’s scheme is aimed at enhancing the storage facilities in the state so that farmers are not forced to sell their produce in distress and retain the commodity until the market conditions improve. Around 6,500 farmers from 28 districts in Maharashtra, who have developed onion chawls or open onion storage structures will be eligible for the grant given by the government. According to industry people, the scheme which falls under the National Horticulture Mission (NHM) gives a grant of 50% on the construction of a 25-tonne chawl, which have to be properly ventilated structures with proper storage. Normally, a 25 tonne storage capacity chawl requires an investment of `1.75 crore, of which a 50% subsidy is offered to onion farmers for setting up such structures. The 27th State Level Project Approval Committee had given the green signal for setting up onion storage structures across Maharashtra in the wake of the price volatility and to prevent farmer from distress sale. Around `150 crore will be spent on the project and accordingly, the government has approved `60 crore within a year. The scheme envisages 50% of the funds to be invested by the farmer and the remaining 50% would come from the government in the form of a grant. Accordingly, 6,789 beneficiaries will receive a grant of `60 crore for the project. Since this is a centrally sponsored scheme, 60% of the funds will be borne by the Centre and the state government shall bear 40% of the expenses for the project. Accordingly, Nashik has some 521 beneficiaries, Ahmednagar has 2,525 beneficiaries, 636 beneficiaries from Jalna, 700 from Aurangabad, 594 from Beed, 203 from Parbhani and 330 from Solapur, among others. Meanwhile, MahaFPC — the apex body of farmer producer companies in Maharashtra, has signed tripartite agreements with 16 farmer producer companies in the state and Nafed to develop a value chain for onion procurement, storage and disposal. MahaFPC managing director Yogesh Thorat said the federation had signed agreements with 9 Farmer Producer Companies (FPCs) initially and another 9 FPCs had come on board last week. Around 14 structures are under various stages of construction and should be ready by the end of March, he said. This is a joint project proposed by Nafed and MahaFPC with contribution of 25 FPCs in the state to execute a Public Private Partnership (PPP) Integrated Agriculture Development (PPP-IAD) project under the Rashtriya Krishi Vikas Yojana (RKVY-RAFTAAR) for building storage capacities for onion and setting up marketing infrastructure. Thorat pointed out that the `60 crore allocation is for individual farmers and this project is separate. This `25-crore project will see the government investing 50% while the rest will be raised by Nafed and FPCs. The project will enable FPCs to remove monopoly of traders in onion markets. The project envisages building storage infrastructure for 25,000 tonne of onion in the state wherein each FPC will establish a cluster on a 1-1.5 acre land parcel for 1,000 tonne each. Each cluster will be set up for `1 crore where 20% of the investment will come from the FPC (from around 100 farmers in each FPC), 25% from Nafed, 5% from MahaFPC and the remaining funds from the state government under the RKVY scheme. Each cluster will contain onion chawls (warehouses) grading houses and weighing bridges. Agreements were initially signed with 16 farmer producer companies and we are now identifying land for the remaining 9 FPCs in the state for the project. Approvals from the government have already come in and work on the project will commence from the second week of January and begin from March 2020.This coming season, the Centre, under the Price Stabilisation Fund, is looking at procurement targets for 25,000 tonne of onion and MahaFPC would be a major player in this, Thorat had stated. Maharashtra produces about 30 % of the total onion output in the country. Onion is normally grown in kharif (June- July), late Kharif (August- September) and Rabi (November-December) seasons. The crop produced in kharif and late kharif has limited shelf life and farmers have to sell the crop in the market since the shelf life is low but Rabi onions can be kept in good condition if stored in scientifically built storage structures.Farmers store their produce in dust proof and moisture proof structures on field called kanda chawls and offload the same till the arrival of the next crop. Onion prices have been on the rise since late September due to a disruption in supply, a decline in production in 2019-20 and late harvesting of the bulb leading to a mismatch in demand and supply. The Centre has already offloaded onions from buffer stocks, banned exports, expedited imports, and imposed stock holding limits on wholesalers and retailers. In September 2019, the government banned onion exports and also imposed a MEP of $850 per tonne. The move came after prices had started skyrocketing due to supply-demand mismatch. There was a shortage of onion as kharif crop was adversely affected due to excessive rains and floods in key producing states, including Maharashtra. The government ordered onion imports which led huge wastage as onion arrivals picked up. The government has now lifted the ban on export which is expected to begin from March 15. Summarise this report in a few sentences.
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the scheme is aimed at enhancing the storage facilities in the state. around 6,500 farmers from 28 districts in Maharashtra will be eligible for the grant. the scheme falls under the national horticulture mission (NHM). it gives a grant of 50% on the construction of a 25-tonne chawl. a 25 tonne storage capacity chawl requires an investment of 1.75 crore.
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Halting the three-day rally, BSE Sensex and Nifty 50 ended in the red as the extension of the moratorium on loans by the Reserve Bank of India led to a sell-off in financial stocks. The 30-share Sensex fell 260 points or 0.84 per cent to end at 30,672, while the broader Nifty 50 index dropped 67 points or 0.74 per cent to close the session at 9,039. Axis Bank share price closed 5.65 per cent lower, while HDFC settled with 5 per cent loss. Similarly, Bajaj Finance was down 4.67 per cent and ICICI Bank dropped 4.32 per cent. “Before the extended weekend, Nifty successfully hold 9000 levels. On a weekly basis, it formed a bearish candle. Rising tensions between US and China will determine the trend for next week. There is a clear divergence between Nifty and Bank Nifty, it will be interesting to see how long remaining stocks in Nifty will continue to hold it above 9000,” said Vishal Wagh, Head of Research, Bonanza Portfolio Ltd. RBI slashes repo rate by 4%: Reserve Bank of India decided to cut the repo rate by 40 bps from 4.4 per cent to 4 per cent to trim the impact of coronavirus on the economy. RBI MPC also said that it expects the GDP growth for this fiscal to remain in negative territory. HDFC twins top drags: HDFC, HDFC Bank, ICICI Bank, Axis Bank and Reliance Industries were among top index contributors towards today’s fall. On the contrary, M&M gained 4.30 per cent and was the top Sensex gainer. Infosys, Asian paints, UltraTech Cement, Tech Mahindra and Maruti Suzuki were among other gainers on the index. Nifty Financial Services decline 3%: Most of the sectoral indices ended lower with up to 3.06 per cent decline. Nifty Financial Services dropped 272 points dragged by M&M Financial Services, Shriram Transport Finance and PFC. Expectations for next week: Domestic equity markets will remain closed on Monday, May 25 on account of Eid ul-Fitr. “Market is encircled with negative news and the only thing that can really bring back confidence in these dark days is discovery of an anti-drug to fight COVID-19 and a vaccine to keep it away. The commentary from US CEOs, even the Fed Governor are all pointing towards the worst which may still be ahead of us. Therefore, Indian bourses going ahead will mirror their economic trajectory,” Jimeet Modi, Founder & CEO, SAMCO Securities & StockNote, said. Summarise this report in a few sentences.
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Sensex and Nifty 50 end in red as rbi extends loan moratorium. axis bank shares fall 5.65%, while HDFC shares drop 5%. ICICI bank drops 4.32 per cent and ICICI bank drops 4.67 per cent. domestic equity markets will remain closed on monday, may 25. 'i am very disappointed with the outcome,' says axis bank.
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Finance Minister Nirmala Sitharaman on Thursday said the government will pay the EPF (Employees' Provident Fund) contribution both of the employer and the employee (10 per cent each) for the next three months in wake of coronavirus outbreak. This scheme will be applicable for organisation with up to 100 employees, where 90 per cent of employees draw less than Rs 15,000 salary. "Government of India will pay the EPF contribution - of both employer and employee (10% each) - for the next three months, so that nobody suffers due to loss of continuity in EPF contribution," she said. The FM said that the provident fund scheme regulations will be amended which will allow workers under EPFO to draw up to 75 per cent of their non-refundable advance or 3 months of wages, whichever is lower. This scheme will benefit 4.8 crore workers registered with EPFO (Employees' Provident Fund Organisation), she added. FM Sitharaman also announced Rs 1.7 lakh crore relief package under Pradhan Mantri Garib Kalyan Yojana for the economy hit by coronavirus. According to her, 80 crore people will benefit from this scheme. Also Read: Nirmala Sitharaman LIVE updates: Rs 1.7 lakh crore relief package announced; cash to be transferred directly to poor Among others, she announced an insurance cover of Rs 50 lakh per person to frontline health workers - ASHA workers, paramedics, doctors, nurses, sanitary workers - who are putting their lives at risk and treating coronavirus patients. She also announced one-time amount of Rs 1,000 for senior citizens, widows and divyang people, in two installments over the next three months. Also Read: Coronavirus: Doctors, nurses, healthcare workers receive Rs 50 lakh insurance cover per person "20 crore woman Jan Dhan account holders to be given ex-gratia amount of 500 rupees per month for the next three months, to run the affairs of their household," she said. The FM also announced that Self Help Groups (SHGs) can now obtain collateral-free loans up to Rs 20 lakh, which is likely to benefit 63 lakh SHGs and have an impact on 7 crore households. By Chitranjan Kumar Summarise this report in a few sentences.
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finance minister says government will pay the EPF contribution for next three months. this will be applicable for organisations with up to 100 employees. 90 per cent of employees draw less than Rs 15,000 salary. 4.8 crore workers registered with EPFO will benefit from scheme. she also announced Rs 1.7 lakh crore relief package under pgaya. pgaya is a government-backed initiative to help the poor.
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With all businesses and industries throughout the globe in massive chaos, there has been grave economic impact of coronavirus across the sectors from tourism to airline; from entertainment to education; from cruises to cars; from food to fashion and so on. Marketers across industries are trying to redesign their business models and the luxury industry is no exception. As per the recent research by Altagamma in association with Boston Consulting Group, it is predicted that coronavirus can bring down global luxury sales between 30 billion Euros to 40 billion Euros. With store closures and customers stooping down in their homes, luxury markets have been severely hit. Major parts of the world, from China to Japan to Europe and the US are struggling with weakening demand and disrupted value chains. This crisis has resulted in a paradigm shift in consumer behavior. From being reluctant to using masks and sanitisers to buying them at any cost; from loving to shop in-store to going digital; from enjoying classroom learnings to attending online sessions; from doing physical meetings to making decisions through videoconferencing and from attending glamorous fashion events to viewing live streaming at digital platforms. This change in behavior may become the 'way of life' and 'new normal' for consumers. Also read: Now, Indian Inc can spend CSR funds to combat coronavirus It's known from the history, each crisis leaves a long term impact and deadly coronavirus is no exception to the rule. The great depression impelled a "waste not want not" attitude that dictated consumption patterns for years. Likewise, the outbreak of Covid-19 may move luxury consumers to assess things from a different outlook. It may alter the key motivational factors for luxury goods consumption. The beliefs, values and attitudes of luxury consumers may drastically evolve leading to changing consumption patterns. Let's look at the 3 major changes that this crisis will bring in luxury consumers in the long-term and its implications on the marketers. 1. Consumers may be driven to buy luxury for "conscientious value" rather than "conspicuous value". In the longer term, because of this crisis, people may be willing to spend more on sustainable brands that reflect their own values and beliefs. Buyers will show increased concern towards fair trade product consumption. They will put more emphasis on benevolent values which may result in ethical decision making. Affluent consumers will rethink and re-prioritise their fashion consumption to make it less conspicuous and more responsive toward society as well as the environment. There will be transformation from "what you wear" to "who you are," within conscious luxury consumers, leading to rising consumer demands for product traceability, supply chain standards, product legitimacy and quality. Note: This is a great opportunity for luxury brands to re-define their business models and create products that are authentic and responsible. They must think deeper beyond the loud logo strategy. 2. Consumers may indulge in hedonistic purchases which make them feel better in this stressful period. This has been termed as 'revenge or retaliatory spending'. They will buy luxury products for 'ego-centered' values, that is, personal values such as health and well-being, hedonism and superior quality. Marketers should make efforts to provide comforting experiences to consumers to help them cope with irrational fears. They must provide offerings that convey emotional values rather than an ostentatious symbol of status and affluence. Note: This is the right time for marketers to go much deeper to unravel what their brand stands for now and what it can mean in the future. They must re-think how they can serve the needs of affluent consumers purposefully and create meaningful content to inspire, engage and entice consumers. 3. Fear of infection has hit luxury shopping malls hard. People are staying more at their homes and buying products online rather than going physically to crowded locations. In the long term, this may lead to a permanent change in the behaviour of consumers and online luxury buying may become a new norm. (Just like after demonetisation episode in India, consumers who were most reluctant are also gradually embracing digital mode of payments). Therefore, retailers should provide more meaningful online experiences to connect with consumers. Note: Online luxury buying will become more attractive in future. This slowdown is the right time for luxury brands to equip themselves to digitise the processes and upgrade their systems and technology. This will enable them to develop operational efficiencies and provide personalised experiences to the customers. Also Read: Coronavirus: Restaurants to axe 1.5 million jobs; Swiggy, Zomato to continue delivery under curfew The luxury industry remains hopeful to bounce back to previous consumption levels after the pandemic ends. This is the perfect time for luxury brands to prepare themselves for the future by identifying the gaps, turning their weaknesses into strengths and strengths into distinctive competences. This endemic may bring a major change in the consumers' mindset and the value system that underpin their luxury buying decisions. The brands that would work to understand this and adapt accordingly will surely turn out to be the new champions. (The author is a luxury market strategist, researcher and consumer behaviour expert credited with conducting India's first quantitative study on luxury consumer behaviour.) Summarise this report in a few sentences.
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marketers across industries are trying to redesign their business models. coronavirus predicted to bring down global luxury sales between 30 billion Euros to 40 billion Euros. major parts of the world, from china to Japan to Europe and the us are struggling. consumers may be driven to buy luxury for "conscientious value" rather than "conspicuous value".
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Washington: US President Donald Trump has signed a bipartisan bill on Tibet into law that could enrage China, paving the way to impose a visa ban on Chinese officials who deny American citizens, government officials and journalists access to the sensitive Himalayan region, homeland of the exiled Dalai Lama. US citizens, including government officials, reporters and tourists who seek to enter Tibetan areas are routinely rejected, and the few who do get in are forced to stay on strictly controlled official tours, where the true situation of the Tibetan people is hidden from them, officials said. The situation is worst of all for Tibetan-Americans, who are almost and always denied the right to make a pilgrimage to their ancestral land and to meet their family members there, community members said. The move by President Trump came days after China lodged a “stern" diplomatic protest with the US over the Senate passing the legislation with Beijing asking Washington not to make it a law. China insists Tibet has been part of its territory for centuries. The Dalai Lama fled to India in 1959 amid an abortive uprising against the Chinese rule in his Himalayan homeland. The White House said that Trump signed into law the ‘Reciprocal Access to Tibet Act of 2018’ which promotes access for diplomats, officials, journalists and others from the United States to China’s Tibetan areas. The bill, which was earlier passed by the Senate and the House of Representatives, seeks to impose a visa ban on Chinese officials who deny American citizens, government officials and journalists’ access to the remote region of Tibet. The move also comes amid the Trump administration imposing massive trade import duties on China, the world’s second largest economy after that of America. However, the bill includes a national security waiver and would require the Secretary of State to submit an assessment to Congress of the level of access to Tibet granted to US officials, journalists and tourists by China. If the Secretary of State determines that there are restrictions on travel to Tibet, the appropriate Chinese officials will be ineligible to enter the US. The Tibetan community described it as a historic moment for them. ‘Reciprocal Access to Tibet Act becomes law, marking new era of American support for Tibet’, said International Campaign for Tibet (ICT). “This is truly a turning point for Americans, Tibetans and all who care about equality, justice and human rights," said ICT president Matteo Mecacci. “By passing this impactful and innovative law, the US has blazed a path for other countries to follow and let the Chinese government know that it will face real consequences for its discrimination against the Tibetan people." Congressman Jim McGovern, who introduced the bill in the House of Representatives, said: “I’m glad that the President signed our bill, the Reciprocal Access to Tibet Act, into law. “For too long, China has covered up their human rights violations in Tibet by restricting travel. But actions have consequences and today we are one step closer to holding the Chinese officials who implement these restrictions accountable". McGovern said he looks forward to watching closely as the law is implemented, and continuing to stand with the people of Tibet in their struggle for religious and cultural freedom. The Reciprocal Access to Tibet Act is based on the diplomatic principle of reciprocity, which calls on countries to give equal rights to one another’s citizens. Sponsors of the bill alleged that when it comes to Tibet, China does not reciprocate. Although Chinese citizens travel freely throughout the US, Chinese authorities severely restrict Americans’ ability to access Tibet. “The Reciprocal Access to Tibet Act specifically highlights the discriminatory attitude of Chinese officials toward Tibetan-Americans who seek to visit Tibet. “The Chinese embassy and consulates routinely place such Tibetan-Americans under a more stringent and non-consular application process merely because they are of Tibetan-origin. This includes subjecting them to vigorous interviews by United Front officials, collecting personal and family information and eventually denying them access," ICT vice president Bhuchung K. Tsering said. The ICT said until now, China has been able to use its economic and military power to isolate Tibet without much resistance from the international community. With reciprocal access to Tibet becoming law, China will begin to feel the weight of its unfair policies. The law requires the Secretary of State to assess Americans’ level of access to Tibet within 90 days of its enactment and to send a report to Congress every year afterwards identifying the Chinese officials responsible for keeping Americans out of Tibet. The Secretary will then ban those officials from receiving visas to enter the US. This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed. Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Topics Summarise this report in a few sentences.
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the bill was passed by the house and the Senate. it would impose a visa ban on Chinese officials who deny american citizens, government officials and journalists’ access to the remote region of Tibet. the move by president Trump came days after china lodged a'stern' diplomatic protest with the US over the legislation. the bill includes a national security waiver and would require the secretary of state to submit an assessment to congress of the level of access granted to US officials, journalists and tourists.
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A man reacts as he looks at a screen displaying the Sensex results outside the Bombay Stock Exchange building, Mumbai, March 12. REUTERS The market started off the week on a negative note, with the benchmark indices falling 3.4 percent on May 18 as the details of the Rs 20-lakh-crore economic package disappointed Dalal Street and accelerating coronavirus infections fuelled added to concerns. Selling was across the board, barring IT and pharma. The Nifty Bank, Auto, Metal, Infra and Real Estate indices were down 4-7 percent, while the Smallcap and Midcap fell 3-4 percent. The BSE Sensex witnessed the 13th biggest single-day fall on May 18, plunging 1,068.75 points or 3.44 percent to close at 30,028.98, while the Nifty50 tumbled 313.60 points or 3.43 percent to 8,823.25 despite positive global cues. Around Rs 3.65 lakh crore were wiped of investors' wealth in a single day. Experts feel the package focussed more on the supply side instead of demand revival, which was the need of the hour given as industries have remained shut for nearly two months. "With the stimulus package announced by the government, not seen as adequate considering the need of the hour and with infections continuing unabated, the markets ended down by around 3.4 percent," Vinod Nair, Head of Research at Geojit Financial Services told Moneycontrol. "Most measures may be seen as a long term positive and markets were more worried about the immediate impact of these measures. With concerns about rising NPAs, financials were most affected. Uncertainty is likely to continue impacting the market performance," he said. Here are last 15 biggest single-day fall of the Sensex: On the technical front, the Nifty50 and the Bank Nifty formed Bearish Belt Hold pattern on daily charts, indicating complete dominance of the bears. "The Nifty50 gave a breakdown from Head & Shoulder pattern on intraday scale and fell on the chin. It is making Lower Highs - Lower Lows from three consecutive sessions and sustaining below 20 DEMA. Momentum oscillator RSI also turned southward on both daily and weekly chart, which is a negative sign for the index," Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services told Moneycontrol. Till the Nifty holds below 9,050, selling pressure would continue towards the 8,500-8,350 zone. "On the flipside, resistances are shifting lower to 9,150 and major at 9,450 zone," he said. Summarise this report in a few sentences.
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the Sensex closed down 3.4 percent on may 18. the Sensex witnessed the 13th biggest single-day fall on may 18. the Sensex closed at 30,028.98, while the Nifty50 tumbled 313.60 points or 3.43 percent. the Sensex is now trading at a new high of 88.9 per cent.
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TOKYO: Sony Corp is seeing 'very considerable' demand for its PlayStation 5 PS5 ) console via pre-orders, its gaming chief said, as the tech firm targets pole position in the race to tap the growth of gaming globally with the device's Nov. 12 launch.Sony pre-sold as many PS5 consoles in the first 12 hours in the United States as in the first 12 weeks for its predecessor PlayStation 4 device, Jim Ryan, CEO of Sony Interactive Entertainment , said in an interview."The demand as expressed by the level of pre-order has been very, very considerable," Ryan told Reuters.Sony sold more than 100 million PS4 units and aims to persuade its user base to upgrade to the new device to play titles like 'Marvel's Spider-Man: Miles Morales' with enhanced graphics, sound and feedback via a new controller.The PS5 launch comes in the midst of the COVID-19 pandemic that has boosted gaming companies but also disrupted retail networks, games development and manufacturing supply chains around the world."It may well be that not everybody who wants to buy a PS5 on launch day will be able to find one," said Ryan, adding the company is "working as hard as we ever can" to ensure supply for the year-end shopping season.Sony is expected to report growing quarterly gaming profit on Thursday as PS4 users shift to higher-margin downloads, with the PS5 forecast to be the first next-generation device not to push the gaming division to an annual loss in its launch year.Sony has built a network of in-house studios producing exclusive titles, including "Ghost of Tsushima" from Sucker Punch Productions , to fend off rivals including Microsoft 's Xbox and new entrants - many of which have struggled."AAA game development is an incredibly complicated and difficult thing to do," Ryan said using an industry term for big budget games. Sony had "learned many lessons over many years" that fed into securing the PS5 launch lineup, he added.Sony plans to grow its studio capability organically but "where we can bolster our in-house capability with selective M&A that might be possible," Ryan said.Analysts question how far the expansion in gaming driven by stuck-at-home consumers will continue longer term.Ryan said it would be up to Sony to drive that engagement."We're definitely looking upwards and thinking that we can do better than we thought we could," Ryan said.Industry insiders warn of the impact of the pandemic on the development of games in their earlier stages."The initial concerns about the impact on the 2021, 2022 roster were really legitimate but are probably slightly assuaged now," Ryan said.Sony's shares have gained 45% since March lows. Its shares climbed as much as 1.4% on Wednesday. Summarise this report in a few sentences.
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the tech firm pre-sold as many PS5 consoles in the first 12 hours in the u.s. as in the first 12 weeks for its predecessor PlayStation 4 device, said gaming chief. the company sold more than 100 million PS4 units and aims to persuade its user base to upgrade to the new device. the launch comes in the midst of the COVID-19 pandemic that has boosted gaming companies but also disrupted retail networks.
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GOA: US networking company Cisco Systems said that Mukesh Ambani-owned Reliance Jio 's foray that has triggered data price reduction is driving the adoption of smartphones and accelerating India's digital profile.“Reduction in data prices in last 2-3 years with one of the players is driving the usage of digital devices, and the people who don’t use smartphones earlier, are using today even for entertainment and over-the-top (OTT) services,” Cisco India & SAARC president Sameer Garde told ETTelecom.Jio’s foray in September 2016 triggered a massive slide in data prices across service providers with prices fallen from an average of Rs 250 per Gigabyte (GB) in 2014 to Rs 19 now, which is less than 8% of what customers use to pay earlier for mobile Internet.There are many small and medium businesses, according to Garde, which do business purely by using WhatsApp by leveraging both video calling and messaging, and added that such is one of the impressive drivers of digitisation.The smartphone penetration rate in India is likely to go up to 39% in 2019, as per Statista.Mary Meeker, a partner at Kleiner Perkins Caufield & Byers, in her annual finding said that the smartphone adoption in less-developed markets is being fuelled by the wide availability of inexpensive handsets.The Cisco executive said that the company is closely associated with Jio, and would also engage with the Mumbai-based telco when it makesan enterprise business foray, to further solidify its position in the sector.“We helped them (Jio) set up state-of-the-art network. As and when it starts enterprise business, we will start engaging with Jio,” Garde added.The US networking major has partnered with Jio to launch the latter's LTE (Long Term Evolution) network in the country.Jio has partnered with Cisco to deploy multi-access edge computing to further optimise and enhance video experience over the network by developing a mobile content delivery network.“Due to digitalisation and growing Internet penetration over last few years, India has become a global country,” the Cisco top executive said.The US technology company feels that India’s Internet industry will double to $250 billion by 2021.Garde also feels that the launch of fifth-generation or 5G services would further drive digitalisation in the country.“There is a lot of discussion around 5G radio. It is also important to look into backhaul management and network upgradation while we embark on 5G,” the Cisco executive said.With a seven-fold growth in mobile data traffic by 2021, Garde believes that 5G rollout will increase usage, with 2 billion devices are likely to be connected by 2021.The US-based company also said that there is a massive opportunity in the Indian telecom landscape.Cisco believes that terabyte Internet would become a norm with a supercomputer in every pocket. The US networking major said that a ‘digital rush’ is estimated to be worth $79.98 trillion worldwide.Grade added that the country has the potential to become a $6 trillion economy with digitalisation, which is expected to contribute 7.1% of the GDP.Cisco also believes that with Artificial Intelligence (AI), it is only the nature of all jobs that would change by 2030, and no career opportunity would be taken away from youth.The technology giant is also aiming to increase the pace of innovation and is currently building a digital partner ecosystem.With a focus on BFSI, manufacturing, education and government-driven digital 2.0 initiatives, Cisco, according to the executive, would look at new business models in next 2-3 years.(The author was attending the company's Goa summit at the invitation from Cisco) Summarise this report in a few sentences.
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reduction in data prices in last 2-3 years is driving the usage of digital devices' 'people who don't use smartphones earlier, are using today even for entertainment and over-the-top (OTT) services' 'the smartphone penetration rate in india is likely to go up to 39% in 2019' 'we helped them (jio) set up state-of-the-art network,' says Cisco executive.
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One of the reasons why Japan’s Galaxy Digital backed GOQii is because of its role in the blockchain space with existing services, claims CEO Vishal Gondal. India’s second largest fitness wearable device maker GOQii is adopting blockchain technology to make its users’ data more secure across its various service offerings, CEO and co-founder Vishal Gondal said to FE Online. California and Mumbai based GOQii was launched by Gondal who previously founded game development company Indiagames and sold it to Disney UTV in 2011. GOQii assigns ‘health score’ to users, offers GOQii cash — its in-app currency and GOQii Health Locker for tracking medical history. GOQii has second largest market share in its segment in India after Xiaomi, according to IDC. It recently reportedly raised around $30 million from New York-based digital assets and blockchain-focused merchant bank Galaxy Digital, Japan’s general trading company Mitsui & Co, and Denlow Investment Trust. Also Read: India first, says Maldives – What visiting foreign minister Abdulla Shahid country said “This is a strategic investment. One of the reasons why Galaxy Digital has backed us is because they see our role in the blockchain space with our Health Score, Cash, Health Locker etc. This can be secured from a privacy and usage perspective on the blockchain,” Gondal told. “Imagine based on your health score we are giving you discounts with insurance companies. Data fragmentation and lack of data authentication are challenges in the insurance industry,” Gondal said. “Let’s say if records of a blood test report are on the blockchain then companies and other users can access it with your permission.” GOQii will allocate the amount raised on expanding to Japan and spending on marketing. “Japan is the second largest economy in Asia and second largest life insurance market in the world after the US,” said Gondal. “Their healthcare cost is ballooning because of increasing old population. Since we are at the intersection of insurance and healthcare markets, Japan was the obvious market. For that Mitsui is the great partner to have.” Summarise this report in a few sentences.
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GOQii assigns ‘health score’ to users and offers GOQii cash. it also offers GOQii Health Locker for tracking medical history. GOQii recently raised around $30 million from new york-based digital assets and blockchain-focused merchant bank Galaxy Digital. it will allocate the amount raised on expanding to Japan and spending on marketing.
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Amol Agrawal The Government of India does not take appointments at Reserve Bank of India (RBI) seriously. As per the RBI Act, the central bank should have four Deputy Governors, but the government has currently filled only three positions — and this at a time when the RBI clearly needs more hands and minds to mitigate the impact of COVID-19. What is more perplexing is how this exercise is being handled. On March 31, the government extended the tenure of BP Kanungo by one year — otherwise his tenure was ending in early April. The same day, NS Vishwanathan, whose tenure was to end in July, retired, and the government or the RBI gave no statement. The departure of Vishwanathan led to reallocation of his portfolio amidst the three deputy governors. This was obviously cumbersome as the portfolios were reallocated about two-and-a-half months back, when Michael D Patra was appointed deputy governor. Patra was appointed on January 15, almost six months after Viral Acharya acquitted office. Acharya held the important monetary policy and economic research department, and the position should have been filled up quickly. Acharya also served as a voting member on the Monetary Policy Committee and after his exit, Kanungo filled in. 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 Markets were given the impression that the government was looking for an expert outside the RBI, but it was finally Patra — who has been a career central banker, executive director of the RBI and member of the MPC — who was appointed. After Patra’s appointment, Kanungo was relieved of the MPC duty as there can be only one deputy governor on the MPC. The government is aware of the tenure and retirement schedule of officers, and thus should plan much in advance to fill posts and not leave them vacant for a long time. Another fact is that there is a lack of clarity about the process followed for appointments. After Acharya’s exit in July 2019, in January the Appointments Committee of the Cabinet (ACC), which is responsible for all the key appointments of India’s institutions, approved Patra’s name. The ACC comprises the Prime Minister and the Home Minister. It is understood that when it comes to appointments to financial institutions, the finance ministry is consulted, but the details are not clear. It is not clear what role the RBI Governor has in the appointment of deputy governors. According to some former governors, the governors give their opinion, but the ACC takes the final call. The RBI’s is not a standalone case. Central bankers world over are appointed in similar secretive ways, as was seen recently in the appointments to the Federal Reserve, Bank of England, European Central Bank and so on. According to Peter Conti-Brown, Professor at University of Pennsylvania, if we have short-lists for CEOs of top companies, university presidents and, of course, political positions, why not have a similar process for a public institution such as the Federal Reserve? He goes a step further and actually compares the process akin to that in Vatican City: “We see high quality people who participate in high stakes negotiations about these prominent positions all the time and in all parts of society, private sector, public sector, civil sector. And so the idea that we should have, just the white smoke coming out of the Vatican when the New York Fed president or the Philadelphia Fed president, whatever, has been selected… that doesn't sound like democratic institutions to me, that sounds like secret societies.” The attribution to a secret society reminds one of the late William Greider’s ‘Secrets of the Temple: How the Federal Reserve Runs the Country’, published in 1989. Greider takes us ‘inside the central bank that is in some ways more secretive than the CIA and more powerful than the President or Congress’. It showed how much of Federal Reserve policies are shrouded in secrecy and that it manipulated interest rates to influence economic conditions not just in United States, but even the world. Greider’s book went on to give a very different picture of central bank policies, so much that it could give Dan Brown ideas for his next book. With advent of inflation targeting in 1989, central banks began to open their temple gates to the public and have come a long way to explain their policies. However, it remains closed on many other issues that matter to the people. Central bank appointments matter greatly and merits far more public scrutiny than is the case. Conti-Brown points as an example the appointment of John Williams as the Head of the New York Federal Reserve. Williams was formerly head of the San Francisco Fed and is a top macro-economist. However, the head of NY Fed requires having good understanding of markets and bank supervision—two areas Williams is not strong in. Likewise is the case of Neel Kashakari, who was the key architect of the fiscal policy for the Barack Obama administration, and is now the President of the Minneapolis Fed. Central banks on their own cannot open up more, and will require an equal effort from the government. The lack of clarity in appointments needs to be removed, and for that public/media feedback should be incorporated into the process. The appointments also have to be time-bound. It is only then that these central banks can begin to truly resemble their claim of them being a public institution. Amol Agrawal is faculty at Ahmedabad University. Views are personal. Summarise this report in a few sentences.
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the government has currently filled only three positions at the reserve bank. the good news is that the SARS-CoV-2 virus has been fairly stable. a vaccine works by mimicking a natural infection. a vaccine not only induces immune response to protect people from future COVID-19 infection, but also helps quickly build herd immunity. a vaccine is a type of vaccine that can be used to prevent the spread of COVID-19.
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The market is abuzz with truckloads of truly wireless earphones in the affordable segment and Sony, which has been absent from this segment, is now coming with its first offering very soon. In fact, by the end of June 2020, Sony will launch a new pair of truly wireless earbuds and this will compete with the biggies in the premium segment. The name and other details are yet to be revealed. Sources close to India Today Tech have confirmed that Sony is indeed coming up with a new TWS earphone for India and unlike the recent set fo affordable ones from various phone makers, Sony will aim for slightly premium positioning. That said, Sony will offer its earbuds in the sub-Rs 20,000 segment, thereby making it within reach of well-heeled audiophiles. The earbuds will be revealed by the end of June 2020 and as with most product launches in the COVID-19 times, Sony will announce it via an online launch event. Following the launch, the earbuds will be available for sale on several offline as well as online channels. Our source did not reveal the name of the product yet and not any of its specifications. While Sony is yet to enter the TWS segment in India, the company did unveil a TWS earphone last year in most international markets. Called the Sony WF-1000XM3, these earbuds have received rave reviews globally and are currently considered to offer the best audio profile in the segment. Chances are that Sony could bring this one to India at a slightly lower price. Or, it could be a completely new model for the Indian market. Given that the price of the earbuds will aim for the premium space, there's a lot to expect from these earbuds. Sony could include its signature Extra Bass tuning to appeal to bass lovers. There's also a possibility of active cancellation making it to these earbuds. Similar to other Sony headphones, it could offer multiple states of equaliser tuning via the Sony headphones app. What remains to be seen is what sort of battery life can we expect from these Sony TWS earbuds. The Sony WF-1000XM3 promise up to 24 hours of battery life and with the new ones, we don't expect anything lesser. Summarise this report in a few sentences.
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Sony will launch a new pair of wireless earbuds in the sub-Rs 20,000 segment. the earbuds will compete with the biggies in the premium segment. the company did launch a TWS earphone last year in most international markets. the earbuds could include extra bass tuning and active cancellation. a new version of the earbuds could be available in the uk in the u.s.
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The new range of smart electric three-wheelers by Omega Seiki come with zero maintenance Li-Ion battery with a swappable option. The company is currently claiming a low running cost of Rs. 0.5/km. Omega Seiki Mobility has expanded its electric three-wheeler range with the unveiling of three new smart EVs that are aimed at both, B2B and B2C segments. The new range of electric vehicles by Omega Seiki includes Sun Ri (electric three-wheeler cargo), Ride (E-rickshaw), and Stream (electric passenger auto-rickshaw). The company says that considering India’s driving situation, simulation software is used in the vehicles and the entire driving and vehicle handling experience is enhanced using immersion reality tools along with a telematics unit and GPS system. Moreover, the body and chassis of the vehicles have been painted with a cathodic electro-deposition method in order to ensure long term durability. Watch our Omega Seiki Rage+ electric three-wheeler video review: Omega Seiki claims that in line with Prime Minister’s Make in India vision, these products are 99% localised. The new range of smart electric three-wheelers by Omega Seiki come with zero maintenance Li-Ion battery with a swappable option. The company is currently claiming a low running cost of Rs. 0.5/km. The vehicles also come with a regenerative braking system along with a roller cage support structure for driver’s safety. The EVs also have a smart electronic speedometer and these three-wheelers can touch a top speed of up to 50 kmph. Talking of the loading capacity, it ranges between 750-960 GVW. The newly introduced electric three-wheelers offer up to 100 km range in a single full charge. Talking of charging time, the battery on these EVs takes three to four hours to get charged from 0 to 100 percent. Speaking on the occasion, Uday Narang, Chairman, Anglian Omega Group said that the Indian market has great potential to capture EV technology on a larger scale. He also stated that replacing the conventional IC engined vehicles with EVs will benefit the nation in multiple ways by generating new employment possibilities, contributing to the economy, and also, sustaining the environment. Narang adds that the new range of vehicles by Omega Seiki is designed to target B2B and B2C markets and exposing the latest technology to ground level. Omega Seiki Mobility is also coming up with a new range of Cargo & Passenger two-wheelers that will be launched in March 2021. Stay tuned with Express Drives for more updates! Also, in case you still haven’t, subscribe to our YouTube channel. Summarise this report in a few sentences.
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the new range of smart electric three-wheelers by Omega Seiki come with zero maintenance Li-Ion battery with a swappable option. the company is currently claiming a low running cost of Rs. 0.5/km. the new range of electric vehicles by Omega Seiki includes sun Ri (electric three-wheeler cargo), Ride (E-rickshaw), and Stream (electric passenger auto-rickshaw)
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Household expenditure on fast-moving consumer goods (FMCG) rose between March and May, compared to the year-ago period, something that appears counter-intuitive during the prolonged nationwide lockdown, according to a report by data, insights and consulting firm Kantar. Expenditure on food, health and homecare products by Indian households grew 4.3% during the covid-19-induced lockdown. The pandemic and the fear of catching the infection, led to the number of trips to grocery stores decline from 34.3 in March to 30.5 in May, indicating pantry loading, Kantar added. Fewer trips, however, translated into bigger ‘trip size’, described as volume bought per trip, resulting in value growth for companies. “Households definitely spent more on FMCG products during the lockdown as compared to last year. The money was spent on food, beverages, health and hygiene, and even homecare products," said K. Ramakrishnan, manging director, worldpanel division, Kantar. Personal care categories, however, took a hit both in urban and rural India, the report said. Among packaged foods, Parle Products, the maker of Parle-G biscuits, reported a surge in sales during the lockdown. The company’s market share in the packaged biscuits category expanded by 5 percentage points and it registered better-than-expected growth from March to May, Mayank Shah, category head, Parle Products, said earlier. Consumption was high as people bought more during the lockdown and hoarded food items. Britannia Industries, too, sold more biscuit packs in April and May, posting 20% and 28% growth in sales, respectively. This was on account of increased in-home consumption of the company’s brands. Marico Ltd’s Saffola cooking oil also registered strong growth during the quarter as consumers cooked more at home during the lockdown. Other FMCG firms also saw shoppers hoarding large packs of staples and homecare products during the first phase of the nationwide lockdown, Adani Wimar’s deputy chief executive officer, Angshu Mallick, had said in an interview earlier. Initially, consumers were stockpiling, so bulk packs did better. Later, the company’s ratio of consumer packs and bulk packs changed from 65:35 to 85:15. “This is because we are seeing more people buying smaller packs and also because restaurants and hotels are closed," he added. “While FMCG companies saw increase in home consumption of staples and other essentials, for them the revenue from the hospitality segment or HORECA (hotel, restaurants, cafes) remained nil," said Ramakrishnan. Interestingly, experimentation among categories dipped during the pandemic as consumers stuck to basic needs; trying out limited new brands in hair oil, washing powder and cooking oil categories. This was especially true for urban markets. The drop was triggered by a combination of factors such as an initial shortage of products in the market, consumer apprehension to spending more time inside a store, and consumers buying only those packaged goods that are necessary during the long hours spent at home currently. For instance, the number of categories bought between March to May in personal care dipped 15% compared to the year-ago period; while those in household care were up 20% in the same period showing consumer preference for items such as floor, toilet and utensil cleaners. [email protected] Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Topics Summarise this report in a few sentences.
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household expenditure on fast-moving consumer goods (FMCG) rose 4.3% during the covid-19-induced lockdown. the number of trips to grocery stores declined from 34.3 in march to 30.5 in may. Among packaged foods, Parle Products, the maker of Parle-G biscuits, reported a surge in sales during the lockdown. consumer spending on food, health and homecare products grew 4.3% during the lockdown.
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Transcript Hi there, this is ETMarkets Investors' Guide, a show about asset classes, market trends and investment opportunities. I am Saloni Goel. Some investors have made a quick buck on Dalal Street over the past few weeks amid the Covid-19 disruption. Data showed nearly 88 per cent stocks on the BSE have delivered positive returns to investors since their March lows, with 123 of them doubling their prices in this period. The benchmark Sensex has advanced nearly 35 per cent since then. But, the macroeconomic picture looks bleak and very uncertain. Subdued GDP figures, sovereign rating downgrade, Sino-US flareup, India's own border tensions and rising Covid-19 cases make the near-term outlook grim. Are the bulls then walking on a slippery slope? Is it time to be extra-cautious or book some profit? Can the market again see quick and sharp correction and trap investors ? Or is it actually an opportune time to pick stocks? We caught up with Amit Jeswani, Founder and Chief Investment Officer at Stallion Asset Management, to seek answers to some of these questions. Welcome to the show, Mr Jeswani How would you explain the dichotomy between very clear distress in the macro- economy and a surging stock market? Have you been a buyer in this rally or are you still waiting and watching? Amit Jeswani Byte 1 Would you explain the investment philosophy of your fund? About 50% of your portfolio allocation seems to be to consumers, consumer technology and finance. How would you explain this investment thesis? Amit Jeswani Byte 2 Let’s talk about performance, because that’s what matters to the investor. How has your fund performed in the past few years and though this Covid disruption? Amit Jeswani Byte 3 Capital protection is important. What mechanism do you follow to protect the capital of your investors and under what circumstances your strategy may not work very efficiently? Amit Jeswani Byte 4 How did special situation investing help you in the past? Does it work in a bear market? How do you see the opportunities going ahead in this space? Amit Jeswani Byte 5 That’s it in this special weekend podcast. Do come back next Saturday for this weekly special. You can check out our regular podcasts on the equity market twice every week day. Summarise this report in a few sentences.
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88 per cent of stocks on the BSE have delivered positive returns to investors since their March lows. 123 of them doubling their prices in this period. the benchmark Sensex has advanced nearly 35 per cent since then. but, the macroeconomic picture looks bleak and very uncertain. subdued GDP figures, sovereign rating downgrade, Sino-US flareup, India's own border tensions and rising Covid-19 cases make the near-term outlook grim.
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With Brazil, Europe and Thailand lowering their production estimates, coupled with depreciation of the rupee, Maharashtra 's sugar industry has ramped up efforts to export 15 lakh tonnes of sugar till March.The central government has also decided to take weekly review of sugar exports as the country plans to export total of 9 million tonnes of sugar in next two years. The government has given mill wise quota to export 50 lakh tonnes of sugar in 2018-19 and extended incentives of Rs 138/tonne of sugarcane . The government will also give transport subsidy for sugar export. Thus the total subsidy available for export of sugar will upto Rs 11/kg of sugar.A meeting of all the sugar Miller's from Maharashtra, the merchant traders and central government officials was held in Mumbai on Saturday. In the marathon meeting that lasted three hours, Sharad Pawar, de facto leader of srare's sugar industry appealed the millers to grab the golden opportunity with both the hands."We can expect large number of export contracts being signed now," said Prakash Naiknavare, managing director, National Federation of Cooperative Sugar Factories.It was decided that a government delegation will visit Thailand Indonesia Malaysia Brazil and China to tap markets traditionally served by Brazil and Thailand.A committee of high level official will hold a review meeting every Friday at 4 pm to review the exportsIndustry stakeholders are confident that India will surpass it's earlier record of 29 lakh tonnes of sugar exported in 2005-06."There is a golden opportunity for India to export sugar as Brazil and Thailand have reduced their production estimate substantially while Australia will enter the export market only March onwards. The international market is all open for India," said Naiknavare, adding, "We will also have to export 40 lakh tonnes of sugar in 2019-20." Summarise this report in a few sentences.
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Maharashtra's sugar industry has ramped up efforts to export 15 lakh tonnes of sugar till March. the country plans to export total of 9 million tonnes of sugar in next two years. the government has given mill wise quota to export 50 lakh tonnes of sugar in 2018-19 and extended incentives of Rs 138/tonne of sugarcane. a government delegation will visit Thailand Indonesia Malaysia Brazil and China to tap markets traditionally served by Brazil and Thailand.
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New York: When investor optimism over U.S. stocks is on the rise, so are Wall Street warnings. Sentiment has climbed to levels that foreshadowed the year’s worst rout, prompting Citigroup to caution that another pullback may be in the offing. At Goldman Sachs, elevated valuations and a tightening labor market have driven the firm’s bull/bear market indicator to alarming highs. It doesn’t mean the bull market will end soon. But after a 9 1/2-year rally where the S&P 500 rose 19 percent annually, investors should be prepared for lower returns in coming years, according to Goldman Sachs strategists led by Peter Oppenheimer. The firm’s bull/bear market indicator has shown a close relationship with the S&P 500’s forward returns since 1955, with peak readings coinciding with the start of the last two bear markets. Right now, it’s “flashing red", said the strategists. The warnings mark a turnaround from last month, when persistent stock gains prompted at least two strategists to raise their year-end forecasts for the S&P 500. “Typically, high valuations – or an extended level of this index – imply the risk of a bear market or a period of low returns over the next five years," the strategists wrote in a note late Tuesday. “This time we think that lower returns are more likely than an impending sharp bear market." The S&P 500 fell 0.7 percent to 2,877.33 as of 10:23 a.m. in New York. The fastest economic expansion in four years, two consecutive quarters of 24 percent earnings growth and record buybacks are fueling confidence in the bull market, which by some measures has surpassed the dot-com era’s as the longest in history. With too many bulls chasing the rally, Citigroup’s strategists led by Tobias Levkovich are urging investors to cut back risk as Friday’s labor-market report could spark a selloff, just it did in February. “The potential for faster wage gains could generate another 5 percent pullback this time, as might Fed policy, geopolitics, trade sanctions, and international economic weakness," the strategists wrote in a note. “It is always challenging to pinpoint the catalyst, but the vulnerability now exists." Citi’s panic/euphoria model, tracking everything from margin debt to options trading and newsletter bullishness, just showed sentiment climbed to extreme levels for the first time since January. Such readings have preceded equity losses over the following 12 months 70 percent of the time since 1987, more than three times the random probability. Voices of concerns are growing louder after the S&P 500 ended August with five straight months of gains, pushing the index above 2,900 for the first time. At 21 times earnings, the benchmark traded at a multiple that’s 19 percent above it’s 10-year average. Binky Chadha, chief global strategist at Deutsche Bank, predicted a retreat of 3 to 5 percent in September, citing the month’s poor seasonality and the prospects of more economic data missing expectations. Moreover, companies will likely provide little support with earnings season not starting until October and the buyback blackout period approaching, he said. Earlier this week, Morgan Stanley strategists led by Andrew Sheets lowered their recommendation on U.S. equities, citing the S&P 500’s “extreme divergence" with other risky assets from the rest of world, peaking profit growth and a slew of risk events over the next two months, including Fed meetings and U.S. midterm elections. Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Topics Summarise this report in a few sentences.
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investors should be prepared for lower returns in coming years, according to goldman sk strategists. the bull/bear market indicator has shown a close relationship with the S&P 500’s forward returns since 1955. the fastest economic expansion in four years, two consecutive quarters of 24 percent earnings growth and record buybacks are fueling confidence in the bull market.
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Gold has lived to its reputation of being a safe haven, so far in 2020. The yellow metal’s price is up 19 per cent since the beginning of the year. Volatile stock markets, inflated credit risk and abundant liquidity in global financial markets have ensured the right platform for gold prices to rally. Moneycontrol’s Nikhil Walavalkar spoke to Rajesh Cheruvu, chief investment officer, Validus Wealth about the prospects for gold and how investors should take exposure to the yellow metal. Excerpts: What do you make of the rally in gold prices? Gold prices rallied when stocks were rising due to the ample liquidity in the financial system and when investors were willing to take risk. Typically, in such times, gold has been bought as an inflation hedge. It has shown negative correlation (does not move in the same direction) with equity when investors were not keen to take risks (risk-off mode); for example, during the Asian currency crisis in 1996-97, global financial crisis in 2008 or even the Eurozone crisis in 2011. In crisis times, the investment demand for gold goes up. A combination of these two factors has ensured that gold has done well in the past. In the long term, gold has delivered around 8 per cent returns in dollar terms. If you see the rupee return, it is around 11 to 12 per cent. However, investors must understand that these returns are also accompanied by high price volatility. Given the massive liquidity infusion by central banks, there is a fear of hyper-inflation. Do you foresee such a situation? How does that impact gold prices? Theoretically, the infusion of liquidity should lead to inflation. However the reality is different. Since the global financial crisis in 2008, we have seen central bankers worldwide cut interest rates and ensure ample liquidity in the financial markets to revive economies. Central banks of the US, countries across Europe and Japan ensured monetary stimulus to raise inflation. However, despite so much cheap money floating in the financial system, inflation did not go up as expected. This time also inflation will take much longer to come back. Inflation will not be the driving factor behind gold prices. The current slowdown is compared with the Great Depression of the 1930s. What would be the impact on gold prices if we again experience a worldwide depression? The current pandemic can be compared to the Spanish Flue of 1918-1920. The COVID-19 pandemic is a once-in-a-century event and may lead to depression. In a depression, typically, all assets lose their shine. In such a scenario, investors should look for options that offer ‘storage of value’ such as currency, treasuries and gold. Between August 1929 and March 1933 (great depression), the Dow Jones Industrial Average fell 81 per cent, but gold gave a positive 27 per cent return on an absolute basis. Where do you see gold prices headed? Over next six to nine months we see gold prices at around USD 1800 per ounce. This amounts to around 8-9 per cent upside from current levels. At around Rs 80 per dollar exchange rate, it should be around Rs 48000 level. Risk aversion of investors should ensure that gold prices are pushed upwards. The falling risk appetite of investors worldwide is visible. Most investors prefer bonds issued in developed countries over bonds issued in emerging markets. Investors are also moving up from junk bonds to investment grade bonds and from investment grade bonds to sovereign bonds. The spreads on credit default swaps are up. The rising demand for safe haven should ensure further run up in gold prices. How much gold should be held in a portfolio? As gold does not generate yields, sovereign gold bonds (SGB) offering 2.5 per cent interest are an attractive avenue to invest in gold. There is no tax on capital gains if held till maturity. There is indexation benefit on capital gains, if sold after holding for three years. We recommend investing up to 5 per cent of your money in gold in a combination of SGB (3 per cent) and gold exchange traded funds (2 per cent). The SGB should be held till maturity. From a tactical perspective, you should be increasing allocation to gold by two percentage points more. This should be achieved using gold ETFs. Overall exposure to gold should be around 7 per cent of your portfolio. Summarise this report in a few sentences.
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gold has delivered around 8 per cent returns in dollar terms. rupee return is around 11 to 12 per cent. gold has been bought as an inflation hedge. the current pandemic can be compared with the Great Depression of the 1930s. gold is expected to be a safe haven in 2020. but gold is expected to be a risky investment.
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Here’s breaking down the pre-market actions. Bharti Airtel, Torrent Pharma, Astrazeneca Pharma, GSK Pharma, Delta Corp, Dr Lal Pathlabs, Monnet Ispat are among a few companies which will announce their March quarter results on Monday. Rupee: The rupee pared initial gains to settle 2 paise lower at 75.58 against the US dollar on Friday amid firming oil prices and lacklustre global cues. 10-year bonds: India 10-year bond yield rose 0.41 per cent to 6.81 after trading in 6.03-6.12 range. Call rates: The overnight call money rate weighted average stood at 3.92 per cent, according to RBI data. It moved in a range of 2.30-4.50 per cent. Q4 Earnings: AstraZeneca | Bharti Airtel | Delta Corp | Glaxo | Lal Pathlab Japan Q1 Prelim Growth Rate (05.20 am) China April House Price Index (07.00 am) US May NHAB Housing Market Index (07.30 pm) Dalal Street looked headed for a weak start to the week, as Nifty futures traded with cuts in Singapore and analysts gave a thumbs-down to the Covid-19 stimulus package after the Finance Minister unveiled the last tranche on Sunday.Nifty futures on the Singapore Exchange traded some 50 points down at 7 am (IST) in signs that Dalal Street was headed for some more selloff amid lack of directional cuesAt the end of Friday's trade, maximum Call open interest stood at Nifty strike prices 10,000 and 9,500 levels, and maximum Put OI at 9,000 and 8,500. Options data indicated an immediate trading range between 8,800 and 9,500 levels of Nifty.While Nifty recovered most of the intraday losses to settle flat on Friday. it still formed a bearish candle resembling a ‘Hammer’ on the daily chart. Analysts said the trend remains negative with Nifty heading towards the 8,900 level now a real possibility.Elsewhere in Asia, equity benchmarks opened mixed as investors weighed encouraging signs of businesses reopening across major economies against more data showing the severity of the pandemic’s impact and rising US-China tensions. Japan's Nikkei rose 0.2%, South Korean stocks 1%. Australian shares also advanced. Stocks were little changed in Hong Kong.Domestic equities witnessed biggest selling by mutual funds in at least four years in April as the benchmark equity gauges climbed about one-fifth from the recent lows reached on March 23, Sebi data showed. In April, mutual funds sold Rs 7,965.5 crore worth of stocks, the highest since Rs 10,194.5 crore sold in March 2016. There was massive selling in sectors such as media and entertainment, metals, auto, paper and construction, giving funds an opportunity to make a quick exit.US stocks recovered from steep losses early Friday to close higher, despite data showing a plunge in April retail sales and news that the Trump administration will block shipments of semiconductors to China’s Huawei Technologies, stoking fears of renewed trade tensions. Dow rose 61 points, or less than 0.3%; S&P500 11.20 points, or 0.4%, and the Nasdaq 70.84 points, or 0.8%.Oil prices jumped by more than $1 a barrel on Monday to their highest in more than a month, supported by ongoing output cuts and signs of gradual recovery in fuel demand as more countries eased lockdowns. Brent crude prices climbed $1.34, or 4.1 per cent, to $33.84 a barrel while WTI crude gained $1.40, or 4.8%, to $30.83The dollar held its ground on Monday as concern about global tensions with China overshadowed improving sentiment. The greenback was steady on most other Asian currencies after gains last week and flat against a basket of currenciesThe Centre on Sunday extended the ongoing nationwide lockdown till May 31, but gave states and Union Territories the final power to delineate Red, Orange and Green zones. The government has allowed considerable relaxations in this round of lockdown- Inter-state movement of vehicles, buses have been allowed... NBFCs have turned out be the darlings of global investors who are now betting big on dollar bonds after the finance minister announced a relief package for the sector last week. High-yield bonds sold by Manappuram, Muthoot, IIFL Fin, Shriram Transport, Indiabulls Housing have rallied in just about a week’s time with yields plunging as much as 500 basis points (bps). This could well pave the way for local shadow banks tapping overseas capital. When yields fall, prices rise. A basis point is 0.01%.An early pickup in economic activity and rise in reverse remittances from rural to urban have led to revival in domestic remittances in May after a near total collapse in March and April. India’s dominant players such as Fino Payments Bank, Spice Digital, Eko Financial Services and PayPoint are reporting a 35-50% recovery in business in the first two weeks of May against a 90% fall in March and April. More importantly, it is a reversal in trend.China’s commerce ministry says it will take “all necessary measures” in response to new US restrictions on Chinese tech giant Huawei’s ability to use American technology, calling the measures an abuse of state power and a violation of market principles. An unidentified spokesperson quoted Sunday in a statement on the ministry’s website said China will “take all necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises,” it said.Goldman Sachs expects India will experience its deepest recession ever after a poor run of data underscored the damaging economic impact of lockdowns in the world’s second-most populous nation. GDP will contract by an annualized 45% in the second quarter from the prior three months, compared with Goldman’s previous forecast of a 20% slump. A stronger rebound of 20% is now seen for the third quarter, while projections for the fourth quarter and first of next year are unchanged at 14% and 6.5%.Delivering the fifth tranche of the economic package, part of Atmanirbhar Bharat Abhiyaan, Finance Minister Nirmala Sitharaman announced measures to enhance Ease of Doing Business through IBC related measures concerning MSMEs. The government has raised the minimum threshold to initiate insolvency proceedings to Rs 1 crore from Rs 1 lakh, which largely insulates MSMEs. The Finance Minister added that the insolvency proceedings will not be initiated up to 1 year, recollecting that currently the MCA has extended it to six months.The government on Sunday said there will be a maximum of four public sector companies in strategic sectors, and state-owned firms in other segments will eventually be privatised. This will be part of a new Pubic Sector Enterprises Policy to be formulated to push reforms in central public sector enterprises (CPSEs), Finance Minister Nirmala Sitharaman said while announcing the fifth and last tranche of the Rs 20 lakh crore stimulus package. Under the policy, a list of strategic sectors will be notified where there will be at least one and a maximum of four PSEs, apart from private sector companies.Hours after the Modi government announced extension of the coronavirus lockdown, aviation regulator DGCA said all scheduled commercial passenger flights have been suspended till May 31 midnight. The Directorate General of Civil Aviation (DGCA) said "foreign and domestic airlines shall be suitably informed about the opening of their operations whether international to or from India or domestic, respectively, in due course".E-commerce companies such as Flipkart, Amazon and Snapdeal, as well as vertical etailers including Lenskart, Nykaa, and Firstcry, are expected to resume full operations from Monday after the central government removed all restrictions on online retail as part of its plan for Lockdown 4.0. However, online sales will continue to be restricted in containment zones, where only essential activities will be permittedHousing sales declined by 11 per cent during the last fiscal to 3.22 lakh units across nine cities, but demand for ready-to-move-in flats increased by over 19 per cent, driven by nil GST and no risk of any delays, PropTiger said. The sales of under-construction apartments dipped 16 per cent to 2,58,281 units in the last fiscal as against 3,08,113 units in 2018-19.Contracting for the second straight month, India's exports shrank by a record 60.28 per cent in April to $10.36 billion, mainly on account of the coronavirus lockdown, official data showed on Friday. Imports too plunged by 58.65 per cent to $17.12 billion in April, leaving a trade deficit of $6.76 billion as against $15.33 billion in April 2019, according to the data by the commerce and industry ministry. This is the lowest trade deficit since May 2016, when it had stood at $6.27 billion. The country's exports had declined by 34.57 per cent in March 2020. Summarise this report in a few sentences.
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rupee slid 2paise against the us dollar on friday amid firming oil prices and lacklustre global cues. Torrent Pharma, astrazeneca, Torrent Pharma, Torrent Pharma, Torrent Pharma, delta corp, Dr Lal Pathlabs, monnet Ispat are among a few companies which will announce their March quarter results on Monday.
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The country's leading lender SBI is upgrading its existing work-from-home policy to work-from-anywhere, as it gears up to adjust to the new challenges posed by COVID-19. On the business side, the focus of the bank in the days ahead would be on revisiting risk assessment and business procedures in addition to rapid adoption of digital technology, said State Bank of India's annual report. This fiscal will be challenging as the full impact of the COVID-19 outbreak will be felt in this financial year. However, from the bank's point of view, the true impact COVID pandemic must also consider the behavioral impact on Bank's customers, and composition of portfolio, the report said. "For instance, likely job cuts and salary reductions will have relatively low level of stress on account of higher proportion of Govt/ Quasi Govt sector customers," the report quoted SBI Chairman Rajnish Kumar as saying. As of now, only 21.8 per cent of the customers have availed the benefit of moratorium, it said and added that the bank was able to achieve 98 per cent branch operability as well as 91 per cent alternate channel operability during the period of lockdown. Nevertheless, an elaborate Business Continuity Plan (BCP) is in place to manage disruptions, said SBI. Business continuity hub branches have been identified to cater to customers in case of emergency and BCP sites identified to support essential backend services, it said. "With global acceptability of Work-from-Home (WFH) arrangements, the Bank is in process of upgrading its existing WFH policy to Work from Anywhere (WFA). "Productivity tools and technology are in already place to perform administrative work remotely," Kumar said in the report. Furthermore, WFA reduces commute time that can be utilised for providing better services to customers as well as ensuring better work life balance. "WFA facility has already been rolled out across 19 foreign offices and soon domestic operations will also be covered. This is expected to drive down the operational cost for the Bank, besides ensuring better motivation and productivity for staff members," the lender said. It further said the impact of COVID-19 outbreak on economy and financial markets has been dramatic and severe. However, COVID-19 pandemic has also opened opportunities for the banks. Reordering of global supply chains presents unique opportunity to India to position itself as manufacturing hub to meet global demand. To the extent state governments are able to secure such relocation of businesses from China; banks will see opportunities to expand business, it said. The report emphasised that rapid adoption of digital technology in response to the COVID-19 also augurs well from point of view of the banks as it may accelerate the adoption of digital offerings by the lenders. "In a nutshell, the outlook on Bank's business and the economy will be conditional on time frame by which the virus is completely eliminated, and normalcy restored," SBI said. The recently released fiscal stimulus package, its priorities and funding strategy will decide how banks will respond in the post-COVID scenario. "Bank will also have to revisit its risk management framework, its internal models of risk assessment and capital planning and business procedures to better adapt to new operating environment," the report said. SBI had posted a net profit of Rs 14,488.11 crore for 2019-20, as compared to Rs 862.23 crore in FY2019. Summarise this report in a few sentences.
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the bank is upgrading its work-from-home policy to work-from-anywhere. the bank is gearing up to adapt to the new challenges posed by COVID-19. the full impact of the outbreak will be felt in this fiscal. but the true impact must also consider the behavioral impact on customers. a spokesman for the bank said the bank is preparing to launch a new 'work from anywhere' policy.
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Prime Minister Narendra Modi on March 24 announced a 21-day lockdown period across India to prevent the spread of the coronavirus. That also means that the Indian economy becomes a patient of sorts because it has been recommended bed-rest for three more weeks. Sharing his views on the impact of all these developments on the economic growth Pronab Sen, former chief statistician said, “The immediate damage which is the week that has passed – where some damage has already happened – and the three weeks to come, if you total them up, I am getting a number of around Rs 10 lakh crore gross domestic product (GDP). We are looking at a situation where over the course of the year depending upon who you believe, we were looking at the growth for the full year of somewhere around Rs 10-12 lakh crore. That has gone. So for FY20, what we are looking at is a flat GDP,” he said. “Looking at the future, much is going to depend on how quickly things can come back to normal. Much depends – at this point in time – about what is the kind of stock holding levels that we have in the system. So, I would imagine for about two months or so after all this quarantine is lifted, we may be able to plug along at a reasonable growth but after that everything is going to depend upon how quickly systems can be put back in place,” he added. When asked what measures can be taken, he replied, “There are a number of things that one needs to think through. The first is the obvious one that people have talked about, which is the recognition that every enterprise is going to have a cash flow problem. So the ability to repay debt is going to be practically zero. So what should be done is that the clock on debt repayment, the EMIs, should be stopped right now. So you go to zero right now and you would be starting it when the government deems that normal activities can be resumed, not before that and keep it open-ended for the moment, don’t put a date on it. That is the first step." "The second step, which is equally important – what we are looking at is a situation where there is going to be an enormous need for cash because what you are doing is kind of transactions one used cash for are the only transactions that are going to be left. How do you get that cash out there is the issue. Putting it into the banking system doesn’t help. So, one has to think about more direct means of cash transfer.” Summarise this report in a few sentences.
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prime minister Narendra Modi on March 24 announced a 21-day lockdown period across India to prevent the spread of the coronavirus. that also means that the Indian economy becomes a patient of sorts because it has been recommended bed-rest for three more weeks. pronab Sen, former chief statistician said: "for FY20, what we are looking at is a flat GDP"
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NEW DELHI: Finance Minister Arun Jaitley Tuesday held a high level meeting with financial sector regulators and discussed interest rates and liquidity issue faced by the non-banking financial companies.The Financial Stability and Development Council ( FSDC ) headed by the finance minister decided that the regulators and the government will keep a close watch on the developing situation and take all necessary measures.The FSDC, comprising of Reserve Bank Governor, Sebi Chairman, and heads of other regulators like PFRDA, IRDAI, and also Chairman of the Insolvency and Bankruptcy Board (IBBI), in its 19th meeting reviewed the current global and domestic economic situation and financial sector performance.The council discussed at length the issue of real interest rate, current liquidity situation, including segmental liquidity position in NBFCs and mutual fund space, an official statement said.Reserve Bank Governor Urjit Patel noted the liquidity problem in NBFCs is not as severe as being projected, but assured the government that it would ensure adequate liquidity in the system, sources said after the meeting.The meet assumes significance as the FSDC is meeting for the first time after RBI Deputy Governor Viral Acharya raised the issues regarding independence of the central bank.Unlike in the past, all the four RBI deputy governors attended Tuesday's FSDC meeting along with Patel.Sources said the RBI governor informed the government that there is no liquidity crunch in the system, barring certain sectors and assured they are keeping a close watch on the financial sector.The government, on its part, asked the RBI to prevent spreading of IL&FS crisis to other sectors of the economy, the sources added.Among other things, the issue regarding strengthening cyber-security in financial markets also came up for discussion. The council also took note of progress made towards setting up of a Computer Emergency Response Team in the Financial Sector (CERT-Fin) under a Statutory Framework.The meeting also deliberated on the need for identifying and securing critical information infrastructure in financial sector, it said.It also discussed the issues and challenges of Crypto Assets/Currency and was briefed about the deliberations in the High-level Committee chaired by the Secretary (Economic Affairs) to devise an appropriate legal framework to ban use of private crypto currencies in India and encouraging the use of Distributed Ledger Technology, as announced in the Budget 2018-19, the statement said."Other issues discussed include market developments and financial stability implications of the use of RegTech and SupTech by Financial Firms and Regulatory and Supervisory Authorities, and implementing the recommendations of the Sumit Bose Committee Report on measures, such as, promoting appropriate disclosure regime for financial distribution costs," it added.The meeting, attended by the top government officials - Secretary Hasmukh Adhia, Economic Affairs Secretary S C Garg, Financial Services Secretary Rajiv Kumar and Corporate Affairs Secretary Injeti Srinivas, took note of the activities undertaken by the FSDC Sub-Committee Chaired by RBI Governor and the action taken by members on the decisions taken in earlier meetings of the council.After the meeting Pension fund regulator PFRDA Chairman Hemant Contractor said there was general discussion on the domestic and global economy.The FSDC was set up to strengthen and institutionalise the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.In May, the government through a gazette notification, had included Ministry of Electronics and Information Technology (MeitY) Secretary in the FSDC in view of the increased focus of the government on digital economy.The series of loan defaults by the IL&FS has resulted in doubts over financial soundness of the non-banking finance companies. The government last month took over the board of IL&FS and appointed seasoned banker Uday Kotak at the helm to resolve the crisis being faced by the NBFCs.According to the sources, the meeting did not discuss differences between RBI and the Finance Ministry on several counts.Acharya in a speech on Friday had said that undermining the central bank's independence could be "potentially catastrophic".He had also called for greater powers for RBI to regulate public sector banks as it seeks to clean up the banking system, saying that central bank's independence was necessary to secure greater financial and macroeconomic stability.The council could not take up the NPA issue, which was part of the agenda due to paucity of time, sources added. Summarise this report in a few sentences.
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finance minister holds high level meeting with financial sector regulators. discussions include interest rates and liquidity issue faced by non-banking financial companies. meeting takes place after RBI Deputy Governor Viral Acharya raised independence issues. FSDC also discussed issues and challenges of crypto assets/currency. a computer emergency response team in financial sector is also discussed.
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After the Securities and Exchange Board of India’s (SEBI) scheme categorisation of mutual funds as per market capitalisation of underlying stocks, the definition of mutual funds has changed and it has brought more clarity and transparency. As per the new arrangement, small cap funds are those funds which invest at least 65% of their corpus in stocks of companies which have small capitalisation or market share and which are ranked from 251 – 500 in the market capital wise categorisation of companies. For ease of understanding we can highlight certain features which define and separate small-cap companies from others: These are companies a) with lowest market capitalisation in the universe of listed companies b) which are in their initial phase of business and are looking for expansion and growth c) where the scope for share price appreciation during market highs is quite high and so is it for price slide during market lows d) which are expected to gain more than the broader market in a rising economy Benefits of investing in Small Cap Funds Small cap funds give an extra edge that a portfolio needs. If large cap funds bring stability to the portfolio, small cap funds, with the high potential, strong growth expectation, aggressive expansion objective and market beating performance, lift the overall returns on investments. These are managed by professional managers who, through in depth research, identify ‘winners of tomorrow’ and help generate ‘alpha’ for the investors’ portfolio. Although volatile in nature, the scope of return over a longer period of time is quite high and works in the favour of the small cap fund investors. Let us now look at some of the key aspects investors should look for before selecting and investing in Small Cap funds: 1. Risk Involved Small cap funds mostly invest in new companies or companies servicing specific areas, businesses or are companies with greater opportunities and high potential. These companies might have the added advantage of a new product offering or service and come with a USP or might even service a niche demand. As is quite evident, small cap funds investing in such companies are more volatile due to risks associated with smaller companies which are either starting out or have only a few years of operational experience. Such companies come with additional risk of limited fundraising capabilities, smaller scale of operations and market to operate in, there is the missing benefit of economies of scale and limited scope for attracting talent etc. Still, these are part of the stock markets and hence will be measured vis a vis their performance metrics and against the competition as well. Investors need to assess these funds against their own risk profile and should arrive at a decision with a defined amount which they can invest for a considerable period of time. 2. Potential scope of return In addition to the current profitability and the level at which small cap companies are operating, the future potential is what the investors should look at. Small cap funds can become the star performers in no time, due to multiple factors working for them. The same factors which might turn negative for a short while in a slowing economy, lend them the heft to become outperformers when the economy is in an upswing. 3. Investment time-frame Small cap funds should be looked at from a long-term time-frame. This is because these companies are not established and for proving their worth, they would need to address some or all of these – invest in expansion capabilities, plant and machinery, developing technical or technological capabilities, cater to fundraising needs etc. This obviously takes time and will start yielding results only after a certain period of time. Remember what they say in markets ‘today’s large cap companies or blue chips started out as small caps.’ Thus, before investing in small caps, a clear strategy should be devised. 4. Expense Structure and Taxes Expense structure which is referred to as ‘Expense Ratio’ or ‘Total Expense Ratio’ needs to be kept in mind because higher expenses reduce the overall returns considerably. Although it might seem to be small, even a 1 percent difference in the expense ratio of funds reduces the returns significantly over 10 – 15 – 20 years. The tax structure for small cap funds is similar to other equity funds. Redemption of small cap units will result in capital gains (or losses). The tax rate depends on the holding period of funds. If the holding period is less than one year, the gains are taxed as Short Term Capital Gains (STCG) at the rate of 15 per cent. In case of holding period of more than one year, Long Term Capital Gains (or losses) are generated and are taxed at the rate of 10 per cent over and above the exemption limit of Rs 10 lakh. 5. Alignment with specific Goals Some investors try to capitalise through market gains and want to benefit from specific events or from market movements. However, small caps can prove to be tricky if the objective is quick returns within a small time-frame. Investors should align their small cap investments with specific long-term goals. This is also beneficial because a longer time-frame gives the investments time to compound and provide better returns. Conclusion For making the best of the opportunity that lies in these funds, investors should choose the SIP route. They can add more through lump sum investment whenever they have an amount which they do not require for the foreseeable future. Investors should also note that along with caution, patience to play out the volatility is what would eventually pay with small cap funds. (By Harsh Jain, Co-founder and COO, Groww) Summarise this report in a few sentences.
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small cap funds are funds which invest at least 65% of their corpus in stocks of companies which have small capitalisation or market share. these are companies with lowest market capitalisation in the universe of listed companies. they are also companies with low scope for share price appreciation during market highs and so is it for price slide during market lows. small cap funds are managed by professional managers who, through in depth research, identify ‘winners of tomorrow’.
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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. Summarise this report in a few sentences.
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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.
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Reuters India is in a 21-day lockdown to stem the spread of the rampaging coronavirus that has sickened at least 724 people and killed 17. While announcing the decision to keep 1.3 billion people locked indoors, Prime Minister Narendra Modi said the virus could spread at a lightning speed and overwhelm even the best healthcare systems in the world, as he went on to cite the examples of Italy, France and other countries. India’s healthcare system is poor and would not be able to handle an outbreak, experts have warned. In his address to the nation, Modi also announced a Rs 15,000-crore package to strengthen healthcare. The money should have come much earlier but for that India would have had to take the human development index a lot more seriously. But we didn’t and it shows. Track this blog for latest updates on coronavirus outbreak India spent barely 1.28% of its GDP on health services in 2017-18, figures released by the government in October 2019 show. In a digital age, it is worrying that the latest data on health, education or agriculture, all of the key sectors of the economy, is not available. 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 According to the National Health Profile (NHP), 2019, health expenditure in 2015 was just 3.4% of the general expenditure. Our neighbouring countries spent around 8.5% on healthcare. Perhaps that is why India lags almost all developed and developing countries on the index. The same NHP report says India recorded 4,19,96,260 cases and 3,740 deaths from acute respiratory infection in 2018. In the same year, 7,59,004 cases and 4,105 pneumonia deaths were recorded. These numbers are significant because the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2) causes respiratory distress and attacks the lungs. Expensive healthcare With government facilities lacking, people are forced to turn to the private sector and it is expensive. Several studies have shown that debt incurred to pay medical bills is one of the biggest reasons for poverty in India. The government has set up primary health centres (PHCs) across the country but they are ill-equipped to provide secondary or tertiary care. They are of little help in times like these. They can’t test for coronavirus. As testing is vital to check the spread of the virus, the ICMR had said if private clinics were allowed, they should offer free tests and get the money reimbursed by the government. But, it has been decided that private clinics will charge patients Rs 4,500 per test, one of the 12 ‘approved’ private pathology companies said in an investor teleconference on March 24. People who can’t afford the test will go without it or be forced to go to a poorly managed government centre. Not just testing, isolation wards, which are needed to keep infections in check, in government hospitals have common toilets – a major source of infection -- and unsanitary conditions. Had its health services been good, India could have opted for measures other than a lockdown. It could have adopted the Singapore model. The city-state has not shut schools or offices and its people do not wear masks. But they are not letting the guard down. There is constant monitoring and testing, and the confirmed cases are isolated immediately and treated. Or, it could have done what Japan is doing. Japan has reported 49 deaths, so far. The country has adopted a “don’t ask, don’t tell” strategy based on minimal testing and buttressed by information massage. It treats the ones identified. But like Singapore, it too has ensured national calm and continued economic activity. Both countries have depended on information technology and a medical system geared to tackle emergencies and offer the finest healthcare services. India could have done the same had its healthcare system been dependable, without crippling the economy that would only add to hardship. Govt has to let go It is important that the government takes a step back and a new system is put in place to improve healthcare in India. One good option is through the insurance regulator. Why should the insurance regulator get involved? First, because it deals with medical insurance. Second, because as of now, it does not reimburse people for their pathology expenses. This is unfortunate because testing allows people to know the health risks they face. This will allow insurance companies to recommend preventive measures to reduce the risk for both the individual and the insurance sector. For instance, had the insurance regulator been overseeing the medicare sector, it could have reached a deal with developers: Mumbai and its neighbourhood have around 3 lakh unsold flats, with entire apartment blocks lying vacant. It will take builders five years to sell this stock. These apartments could have been rented at a nominal rate to hospital chains for the period and converted into isolation wards, each room with a toilet. The costs would be manageable if the entire insurance sector, with government subsidy for the crisis, backed it. Insurance companies can give their customers a 60% rebate on pathology tests. It is a win-win for all. It will lead to a decline in out-of-pocket expenditure and people will have an incentive to take medical policies. Insurance companies will benefit because of high registrants and the pathology firms will gain because insurance companies can drive volumes. The insurance regulator can also oversee Ayushman Bharat. Currently, the healthcare programme is hobbled. There are not enough doctors. India has just 1.3 hospital beds and 0.8 physicians for every 1,000 people. India is not testing enough, so the credibility of figures being shared by the ministry of health is being questioned. “Bihar has only one testing centre. . . Having just 52 centres across India makes no sense. And not even all of these are fully functional,” Dr T Sundararaman, a former director of the National Health Systems Resource Centre, has said. Bihar, one of the poorest states in India, has reported only four cases and one death, so far. Again, insurance companies can league up with the likes of the UK-based Mologic Ltd, in collaboration with Senegalese research foundation Institut Pasteur de Dakar, which in three months promises to bring down the cost of COVID-19 testing kits to just $1 and testing time to10 minutes. That could be a game-changer. For now, there is a lockdown for three weeks. Much of the business will be crippled but the government can use these 21 days to overhaul the medicare sector. (Series concludes) (The author is a consulting editor with Moneycontrol) Summarise this report in a few sentences.
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india is in a 21-day lockdown to stem the spread of the rampaging coronavirus. prime minister Narendra modi said the virus could spread at lightning speed. he also announced a Rs 15,000-crore package to strengthen healthcare. india spent barely 1.28% of its GDP on health services in 2017-18. a vaccine works by mimicking a natural infection.
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LONDON: India’s ambition to attract more foreign money into its financial markets is being buffeted again, having only just started to make progress after years of talk but very little action.Deadly clashes between Indian and Chinese troops on the Himalayan border, a surge in coronavirus cases and its second sovereign credit rating cut of the month on Thursday has thrown the country back into the international spotlight this week.It is unfortunate timing, coming just months after Indian policy makers embarked on a fresh drive to open the country’s bond markets to global investors , but adds to a list of issues stacking up.After years of rapid growth , India’s economy is facing its worst recession in recent history, unemployment has been catapulted to an unprecedented 24 per cent, and extra government spending is expected to leave a yawning 11 per cent budget deficit that will push the debt-to-GDP ratio beyond 80 per cent.“The coronavirus pandemic has significantly weakened India’s growth outlook for this year and exposed the challenges associated with a high public-debt burden,” ratings agency Fitch said as it joined Moody’s in cutting the country’s rating.The moves leave it teetering on the last rung of investment grade and a possible return to ‘junk’ status for the first time in nearly 14 years. Fitch cited doubts whether growth rates of 6-7 per cent could be reclaimed, while Moody’s broader concern is that remedies needed to strengthen fiscal health have barely begun.Mark Evans, investment analyst for emerging market debt and currency at Ninety One, said a further downgrade would “likely trigger a knee-jerk negative reaction across all Indian assets”.Brazil to South Africa in recent years have shown the cost of losing your investment grade stripes but what matters more, Evans added, was whether there was willingness and ability to get fundamentals back on a sounder footing.“The coronavirus pandemic is a global shock and is not unique to India,” Sanjeev Sanyal, principle chief economic adviser at the Ministry of Finance, New Delhi told Reuters in response to questions about the rating worries.“As far as our ability to service external debt is concerned, India’s foreign exchange reserves of $500 billion and rising are more than adequate to meet all foreign obligations.”Policymakers have been talking about opening up India’s financial sector and internationalising the use of the rupee for more than a decade, with little progress.One element of the recent reform plans was to bring foreign investors into Indian markets in broadly the way China has over the last decade.World Bank head David Malpass has noted India’s equity market capitalization had grown to over $2.2 trillion but its debt market remains at a “nascent stage of development”.Less than 4 per cent of government bonds are held by foreigners compared to 20 per cent-40 per cent in nearby Indonesia and Malaysia, according to Institute of International Finance (IIF) deputy chief economist Sergi Lanau. Corporate-bond issuance was roughly 4 per cent of GDP, which is also much less than other big emerging markets.In March, the central bank took its first real stab at addressing this, moving away from 6 per cent limits on foreign ownership of government bonds and allowing unlimited access on a select group of benchmarks, under Fully Accessible Route (FAR) plan.The previous limits have kept India’s bonds out of top global investment indexes like the JPMorgan-run GBI-EM or Bloomberg Barclays Global Aggregate which attract emerging market-focused money managers worldwide.Noting the FAR changes, JPMorgan this month flagged India as one of four countries vying for possible GBI-EM inclusion. It could have chunky 7.8 per cent weighting in the index, though with only 9 per cent of debt stock currently covered by the new rules, the U.S. bank stopped short of suggesting it was imminent.Jayesh Mehta, India country treasurer at Bank of America, is bullish that at least one of the big indexes will include it soon, though others think it remains some way off. The Barclays Bloomberg index requires an investment grade rating too.Aviva fund manager Stuart Ritson is one of the doubters. He thinks the prospect of more interest rate cuts by the Reserve Bank of India still makes the country’s bonds attractive at present. But $14 billion worth have been sold by foreign investors this year. Outflows from Indian stocks also hit a three-year high in the March quarter.BofA’s Mehta also sees little progress in making the rupee a global power-currency. Masala bonds — rupee-denominated bonds issued outside India — have emerged, but there is little incentive for firms to invoice internationally in the currency.The rupee’s share of daily FX market turnover has gradually crept up to 1.7 per cent but that compare to 4.3 per cent for China’s yuan where Beijing has been more proactive is pushing yuan bonds.New Delhi’s reluctance to issue dollar-denominated bonds might also cut the government’s options at a time when the a gaping budget hole needs to be plugged. A ratings downgrade would only make the job tougher.“We certainly need to watch that space given the level of shock to the system we are seeing now,” said Neeraj Seth, head of Asian credit at BlackRock. Summarise this report in a few sentences.
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clashes between Indian and Chinese troops on the Himalayan border. surge in coronavirus cases and credit rating cut thrown country back into spotlight. follows drive to open country's bond markets to global investors. 'coronavirus pandemic has significantly weakened India's growth outlook'. 'junk' status is a possible return to 'junk' status for first time in 14 years.
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Private equity (PE) investments in India have touched the highest ever figure of $33.1 billion in 2018, across 720 transactions, with big ticket investments in consumer apps Swiggy and Byju’s adding glitter to the deal chart in the fag end of the year. While PE investments had surpassed the previous high of $24.3 billion across 734 deals in 2017, in the first nine months of 2018 itself, the mega investments in startups such as Swiggy and Byju’s towards the year-end, helped the 2018 total vault by 36% year-on-year, according to data from Venture Intelligence, a Chennai-based research service focused on private company financials, transactions and their valuations. The year witnessed 81 PE investments worth $100 million or more, accounting for 77% of the total investment value during the period, compared to 47 such transactions in 2017. Of these, 40 were larger than $200 million each (by themselves accounting for 60% of the total value) — compared to 30 such investments in the year ago period, the Venture Intelligence data shows. Led by the $1 billion investment in Swiggy from South Africa-based Naspers and others and Oyo, led by SoftBank, IT & ITeS companies accounted for 32% of the PE investment pie in 2018 attracting $10.6 billion across 383 deals. Food delivery app maker Swiggy had started the year with a $100 million investment led by Naspers, and followed it up with mid-year $210 million raise co-led by Naspers and DST Global and polished the year off with a $1 billion investment led by Naspers and Tencent. Hotel chain Oyo raised $800 million with an additional commitment for $200 million led by SoftBank Vision Fund. Paytm raised $445 million from SoftBank and Alibaba for its e-commerce business, Paytm Mall and $356 million from Berkshire Hathaway at the parent company, One 97 Communications, level. The year saw eight new Unicorn companies being minted, including five — Oyo, PolicyBazaar, Swiggy, Paytm Mall and Byju’s — which raised $540 million from Naspers in the B2C segment. The B2B entrants included, apart from BillDesk (which is focused on enabling online payments for utilities), SaaS startup Freshworks via a $100 million round from existing investors Sequoia Capital, Accel Partners and CapitalG and two-year-old B2B E-commerce platform Udaan, $225 million from existing investors – DST Global and Lightspeed Ventures. Arun Natarajan, founder of Venture Intelligence,said: “The mid-year Walmart-Flipkart deal clearly re-energised international investors’ appetite for mega bets in Indian internet and mobile companies. This has helped offset the slowdown in investments in sectors like financial services, manufacturing and infrastructure towards the year end triggered by nervousness in the public markets and the IL&FS scare.” Other large ticket IT & ITeS investments in 2018 include the $300 million attracted by online payment gateway service BillDesk from Temasek and others; the $236 million raise by online insurance broker PolicyBazaar, led by SoftBank and the $410 million across two rounds, raised by Swiggy competitor Zomato. Other notable tech companies that attracted rounds of $100 million or more during the year included payments enabler Pine Labs, event ticketing service Bookmyshow, regional language social app ShareChat, music service Gaana.com and fantasy gaming startup Dream11. “Whether the PE investment tally of 2019 can outdo the highs of 2018 seems set to hinge substantially on global economic trends in the New Year and the outcome of the upcoming National Elections,” he added. Summarise this report in a few sentences.
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private equity (PE) investments in india have touched the highest ever figure of $33.1 billion in 2018, across 720 transactions. mega investments in consumer apps Swiggy and Byju’s helped the 2018 total vault by 36% year-on-year. of these, 40 were larger than $200 million each (by themselves accounting for 60% of the total value) of these, 40 were larger than $200 million each.
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Isaac Stone Fish, senior fellow at the Asia Society's Center on US-China Relations says that the meeting with Kim is a huge gamble for Trump. He also says that in the event of the meeting not going well, Trump could lose a lot of credibility. (Image Source: Reuters) The UN Security Council should consider steps toward lifting sanctions on North Korea following its agreement with the United States to scrap its nuclear program, Russia's UN ambassador said. The council last year adopted three rounds of tough economic sanctions on North Korea, banning most of its exports of raw commodities and severely restricting oil supplies. Asked about lifting sanctions, Russian Ambassador Vassily Nebenzia told reporters: "I think that it is only natural that we should be thinking about steps in that direction." "There is progress on the track that should be reciprocal. There should be a two-way street," he said. "Of course the other side should see encouragement to go forward." At the first-ever meeting between sitting leaders of the US and North Korea yesterday in Singapore, President Donald Trump and Kim Jong Un pledged in a joint statement to work toward the "complete denuclearisation of the Korean Peninsula." The United States along with Japan and European countries maintain that the raft of tough sanctions must remain in place until North Korea has fully dismantled its weapons programmes. Russia and China argue that there should be a gradual approach, offering some sanctions relief in exchange for concrete action from Pyongyang along the path toward denuclearisation. The council is expected to meet to discuss the results of the Singapore summit, but Nebenzia, who holds the council presidency this month, said nothing had been scheduled yet. "It would be interesting to hear from those who were directly involved their assessment of the results," said the Russian ambassador. Many diplomats credit the UN move to ramp up sanctions as a decisive factor in pressuring Kim to agree to negotiate an end to North Korea's military programme. Kim came to understand that "having a nuclear bomb is not compatible with having an economy," said a Security Council diplomat. Dutch Ambassador Karel van Oosterom, who heads the council's sanctions committee on North Korea said the punitive measures were still being applied in full force. "We will continue to keep up the pressure with the full implementation of the sanctions," he said. Summarise this report in a few sentences.
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the meeting with Kim Jong Un is a huge gamble for Trump, says a senior fellow. the meeting is expected to take place in the next few days. the u.s. and china have pledged to work toward a "complete denuclearisation" of the peninsula. the u.s. and china have also urged the council to consider lifting sanctions.
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The ubiquitous box office in a cinema theatre from where one bought tickets to watch a film would be history in the new normal post the coronavirus lockdown. While multiplexes would probably be the last to bounce back in the new normal, multiplex companies such as PVR and Inox are going all out to make their properties safe for their patrons. Movie ticket buying will completely shift online, which is one of the many precautions these companies plan to take in order to offer a contactless experience. "Almost 60-70 per cent of our tickets are already booked online, now we are making box offices redundant in most properties. People will get QR codes on their phones, which they can flash in front of the security. At the security, we will have door frame metal detectors instead of hand-held metal detectors so that there is a distancing maintained," explains Ajay Bijli, MD, PVR. "There is no doubt that COVID has challenged the passion for cinema which is prevalent in our country. In order to serve them the safest experience, we have re-engineered most of our processes, ensuring that the responsibility to ensure entertainment is not compromised. I am sure these practices will slowly become an integral part of a consumer's behaviour," adds Alok Tandon, CEO, Inox Movies. Apart from temperature checks being done for both the patrons and employees, multiplex chains claim their spends would be up by 15-20 per cent for putting in place strict safety and hygiene practices. PVR, says Bijli, would be investing in a hygiene product which will keep the seat disinfected for 30 days. "There will be stickers on the seats to say that the seat was sanitised on a particular date. We are putting disinfectants even in the AC ducts. Our employees will also wear a badge saying that they have been tested and are safe. Our best-practices are better than what it is being practised even in the matured markets." While all of them are planning staggered seating in order to ensure physical distancing, Tandon of Inox also says that movie shows would be planned in such a way that entry, intermissions and exits to two shows don't occur simultaneously so that crowding of lobbies and restrooms can be avoided. Food and beverage contributed around 30-35 per cent of a multiplex company's revenue and prior to COVID-19, most of them had made huge investments on their F&B menu. From international cuisine offerings to live kitchens manned by teams of celebrity chefs, multiplex menus were as lavish as it could get. The new normal would be back to basics as far as multiplex menus are concerned. It will be back to the good-old popcorn and cold drinks. "We will truncate our menus, lot of the food will be pre-packed, which will help in reducing the waiting time at the food counters," points out Bijli. Staggered seating and truncating of menu cards will surely lead to a loss of revenue and it would take a long while for the multiplex business to revive. Bijli disagrees. "There is lot of misconception that our installed capacity will get reduced to half. It will not get reduced to half, it will get impacted by only 10-20 per cent," he says. "The lesser seats that we would sell and the lesser shows that we would run in our cinemas whilst sacrificing revenues, will be the investment of inventory that we will be making for gaining customer confidence, which will be our top priority," adds Tandon. With footfalls likely to be half of these multiplexes' actual capacity and revenue from F&B likely to be considerably muted, will the cinema-going experience get more expensive (average cost of a multiplex ticket is around Rs 200-Rs 300)? It is a blatant no from the multiplex head honchos. "We want to bring people back to the cinemas, we will not increase our prices," says Bijli. Summarise this report in a few sentences.
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multiplexes plan to make their properties safe for patrons. cinemas will be able to offer contactless access to their patrons. multiplexes will also be able to offer a'safety' product. a number of companies are planning to make their properties safer. a'safety' product will be installed on all of their properties.
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Representative image live bse live nse live Volume Todays L/H More × Motilal Oswal remained bullish on Indian Hotels and Lemon Tree Hotels on the back of management commentary post December quarter result. The brokerage firm has a buy rating on Indian Hotels with a target price of Rs 190, implying a 45 percent potential upside from current levels. Meanwhile, it has a Lemon Tree Hotels with a target price of Rs 72, implying 22 percent potential upside from current levels. Over FY20-22, the brokerage expects Indian Hotels to post revenue/EBITDA/ARR CAGR of 9/18/8 percent, while Lemon Tree is likely to show revenue/EBITDA CAGR of 26/36 percent over FY20-22, backed by stabilisation of the recently commenced hotels and contribution from Keys Hotel acquisition. Indian Hotels share price gained 1.3 percent intraday and Lemon Tree Hotels rose 2.7 percent today after this report. Aggregate revenue for the hospitality sector increased 5 percent YoY in Q3FY20, led by Lemon Tree (up 39 percent YoY) and Chalet Hotels (up 12 percent YoY). However, EIH's performance (down 4 percent YoY) was dragged by loss of flight catering business from Jet Airways. Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation for Ind-AS 116) for the sector was up 12 percent YoY, driven by Lemon Tree (up 48 percent), Chalet (up 25 percent) and Indian Hotels (up 13 percent). EIH disappointed on this front too with a decline of 8 percent YoY. Indian Hotels' consolidated revenue grew 4 percent YoY, while adjusted EBITDA was up 13 percent YoY, mainly driven by its standalone business (revenue/adjusted EBITDA up 7/13 percent YoY). Subsidiary revenue was down 1 percent YoY, but EBITDA increased 13 percent YoY led by cost-rationalization measures. Lemon Tree Hotels delivered robust 39 percent YoY growth in revenue, mainly due to inventory addition (absent in the base quarter) and 7.5 percent revenue per available room (RevPAR) growth on a same-hotel basis. Its adjusted EBITDA was up 48 percent YoY, but on a same-hotel basis, revenue/EBITDA grew 6/19 percent YoY. "Industry demand increased 4.7 percent YoY and supply was up 2.5 percent YoY in the quarter, indicating favourable a demand-supply scenario for the second straight quarter post elections," said Motilal Oswal. "After dipping in Q1FY20 owing to elections, industry RevPAR growth appears to have come back on track at 5.5 percent YoY in Q3FY20 (up 2.5 percent in Q2FY20)," it added. Indian Hotels' RevPAR grew 5.6 percent YoY to Rs 7,224 in Q3FY20; its network hotels delivered higher growth of 7-10 percent in key markets of Mumbai, New Delhi, Chennai, Hyderabad and Bengaluru. Domestic hotel network room/F&B revenue grew 7/11 percent YoY. Lemon Tree Hotels' RevPAR was up 1.9 percent YoY at Rs 3,311 in Q3. On a same-hotel basis, RevPAR was up 7.5 percent YoY (with ARR up 5.4 percent and occupancy up 148bp to 76.2 percent). These companies in their conference call commonly said GST rate cut has boosted demand from retail customers, driving ARR growth for the quarter. Mix of retail customers has been on an uptrend over the last few years. Hence Motilal Oswal feels the outlook for FY21 appears encouraging for free individual traveller (FIT) led by the GST rate cut and the likely recovery in the economy. "This should translate into ARR growth." Indian Hotels said it has signed 24 management contract hotels with inventory of over 2,800 keys in FY20 – an industry-leading figure. The company has repositioned 20 percent of the Ginger portfolio as lean-luxe hotels which have a premium of 26 percent in ARR. It will have around 370-room hotel under the Ginger brand in Santacruz, Mumbai, and will apply for Certificate of Commencement. "Demand from large corporates and SMEs has been impacted, but the same is more than compensated by the retail segment. Retail share was up to 39 percent from 36 percent in Q3FY19. Cancellation trend was evident due to the coronavirus outbreak, but the same was offset by higher domestic demand," said Lemon Tree. The company has taken a price hike of 3-4 percent for large corporates, 5-6 percent for SMEs and 8-10 percent for retail. Indian Hotels Company was quoting at Rs 131.40, up Rs 0.60, or 0.46 percent and Lemon Tree Hotels was at Rs 59.70, up Rs 0.70, or 1.19 percent on the BSE at 1125 hours IST. Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Summarise this report in a few sentences.
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Indian Hotels' consolidated revenue grew 4 percent YoY, while adjusted EBITDA was up 13 percent YoY. lemon tree hotels delivered robust 39 percent YoY growth in revenue, mainly due to inventory addition. a spokesman for the firm said the firm has a target price of Rs 190. a spokesman for the firm said the firm is'very bullish'
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live bse live nse live Volume Todays L/H More × Labelling India as an extraordinary country growing at an incredible scale, energy supermajor BP Plc on October 26 said it is looking to expand its presence in the nation in fuel retailing and mobility solutions, but wanted natural gas to be included in the GST regime. Speaking at the India Energy Forum by CERAWeek, BP Group chief executive Bernard Looney said his firm in partnership with Reliance Industries Ltd will in the next 4-5 years set up 5,500 retail sites that will not just sell petrol and diesel but also offer mobility solutions like EV charging facility. "India is an extraordinary country with an extraordinary history, an extraordinary group of people, and with extraordinary ambition," he said, adding the country has a growing population, and an ambitious agenda to cut emissions. This, he said, was "very, very compelling". "Why is India important, because it is India," he said, adding energy mix in the country could fall from 50 percent coal to 40 percent, while gas and renewables will grow. Looney said India will be the fastest-growing fuel and lubricant market in the next 20 years and his group's venture with Reliance will grow the network of petrol pumps to 5,500 in the next 4-5 years from the current 1,400. As many as 80,000 jobs will be created in the building of the network, he said, adding the venture will offer mobility solutions under the Jio-BP brand. RIL, currently, has about 1,400 operating petrol pumps and some 31-odd aviation fuel stations at airports. These have been taken over by the RIL-BP joint venture and will be grown in the future. While petrol pumps will be expanded to 5,500, aviation refuelling facilities will grow to 45. RIL, currently, has about 1,400 operating petrol pumps and some 31-odd aviation fuel stations at airports. RIL holds 51 percent in the new joint venture company, while BP has the remaining 49 percent. BP paid about Rs 7,000 crore to acquire the 49 percent stake. This is the third joint venture between Reliance and BP since 2011. BP had in 2011 bought a 30 percent stake in 21 oil and gas exploration and production blocks of Reliance for $7.2 billion. At that time, another 50:50 joint venture, India Gas Solutions, was set up for sourcing and marketing gas in India. RIL-BP is investing $5 billion in developing the next set of discoveries in the KG Basin D6 block. "Our production with Reliance will account for 15 percent of India gas production," he said. Looney said while the company feels the ease of doing business on the ground, India is a complex market. GST was a welcome federal initiative to ease trade and it will be good if natural gas is included in that. When Goods and Services Tax (GST), which amalgamated 17 different central and state levies like excise duty and VAT, was implemented in July 2017, five products – petrol, diesel, crude oil, aviation turbine fuel, and natural gas, were kept out of its purview for the time being. This meant that gas users could not set off tax paid on inputs against those on the final product and tax on tax continued, disincentivising the use of the fuel. He said BP has a "deep, trusting relationship" with Mukesh Ambani, chairman of RIL. On the impact of COVID-19 on oil demand, he said it was too early to say what the true impact was but there would be some impact in the medium to long term. But communities around the world are demanding more affordable, reliable, and clean energy and BP was committed to providing solutions for the same, he said. Speaking at the same event, Total CEO Patrick Pouyanne said India is one of the largest markets in the world for energy, but its per capita consumption is just 30 percent of the world average, offering huge potential. "We want to be an important part of India," he said, adding the French group is investing in setting up LNG import terminal, city gas expansion, and renewable energy projects in the country. Disclaimer: “Reliance Industries Ltd, which own Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.” Summarise this report in a few sentences.
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BP says it wants natural gas to be included in the GST regime. he says the country has a growing population and an ambitious agenda to cut emissions. he says the country will be the fastest-growing fuel and lubricant market in the next 20 years. he says he wants to expand its presence in the nation in fuel retailing and mobility solutions.
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SYDNEY: Asian stocks started in subdued fashion on Monday as investors fretted that political instability in the United States was leaving the country rudderless at a time when the global economy was showing signs of faltering.Moves were limited by a holiday in Japan while many bourses are set to close early for Christmas. After opening lower, E-Mini futures for the S&P 500 turned flat. MSCI 's broadest index of Asia-Pacific shares outside Japan lost 0.38 per cent and Australian stocks 0.2 per cent.US President Donald Trump 's budget director and chief of staff on Sunday said the partial US government shutdown could continue into January, when the new Congress convenes and Democrats take over the House of Representatives.Trump on Sunday said he was replacing Defense Secretary Jim Mattis two months early, a move officials said was driven by the president's anger at Mattis' resignation letter and its rebuke of his foreign policy.Sources also told Reuters Trump has privately discussed the possibility of firing Federal Reserve Chairman Jerome Powell, a move that would likely roil financial markets.Treasury Secretary Steven Mnuchin felt it necessary to personally call the heads of the six largest US banks to calm nerves and made plans to convene a group of officials known as the "Plunge Protection Team.""It provides more than enough fodder for perceptions of chaos and instability in the White House," said Ray Attrill, head of FX strategy at NAB."At the same time, the government shutdown offers a true foretaste of what lies ahead once the new Congress in sworn in on January 3."The political uncertainty has only added to the air of risk aversion , punishing equities to the benefit of bonds.The Nasdaq has fallen nearly 22 per cent from its Aug. 29 high and into bear territory, while the S&P 500 was on track for its worst December since the Great Depression.At the same time 10-year Treasury yields were near their lowest since August at 2.79 per cent, having fallen over 40 basis points in just six weeks.The gap between two- and 10-year yields has shrunk to only 14 basis points, a flattening of the curve that has heralded economic turning points in the past."Many of the financial and economic indicators that turn first around business cycle peaks are now flashing red in advanced economies," warned Simon MacAdam, global economist as Capital Economics "This is consistent with our view that the recent loss of momentum in the world economy will develop into a more severe slowdown in 2019."The flight to safe havens was again boosting the Japanese yen, with the dollar near a three-month trough at 111.07 yen on Monday.It fared better on the euro, which was undermined by a run of poor data out of Europe. The single currency slipped to $1.1373 from a high of $1.1485 last week.Against a basket of currencies, the dollar index was a shade softer at 96.902.In commodity markets, gold held near its recent six-month peak as the dollar eased and the threat of higher US interest rates waned. Spot gold stood at $1,259.60 per ounce.Oil prices were near their lowest since the third quarter of 2017, having shed no less than 11 per cent last week.US crude was last unchanged at $45.59 a barrel, while Brent dipped 19 cents to $53.63. Summarise this report in a few sentences.
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e-mini futures for the s&p 500 turn flat after opening lower. u.s. president says he's replacing defense secretary Jim Mattis two months early. u.s. treasury secretary calls bank heads to calm nerves. u.s. economy showing signs of faltering. u.s. economy is showing signs of faltering.
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MORE STORIES FOR YOU ✕ Dollar nurses losses as currency markets eye recovery prospects Rupee settles 14 paise lower at 75.80 against US dollar « Back to recommendation stories I don't want to see these stories because They are not relevant to me They disrupt the reading flow Others SUBMIT The rupee on Thursday opened 10 paise higher at 75.69 against the US dollar, tracking positive start in domestic equities.On the domestic front, no major economic data is expected to release but the focus will be on fresh updates of how the economy reopens after the shutdown. Motilal Oswal Financial Services believes the local unit will remain under pressure on the back of fund outflows by the FIIs from the equity and debt segment.Fund outflow so far this month has been to the tune of $1.5 billion and if the trend continues, it will be the third successive month of outflow.Over the last couple of sessions, markets were optimistic after data from an early-stage trial for a coronavirus vaccine lifted hopes for a near-term economic recovery.“We expect the rupee (Spot) to quote in the range of 75.40 and 76.20,” MOSL said.Euro gained in yesterday’s session after a boost from the recently announced proposal for a common fund that could move Europe closer to a fiscal union as it tries to counter the economic hit from the coronavirus pandemic.Today, market participants will be keeping an eye on the preliminary manufacturing and services PMI number that will be released from the US and Eurozone. There are expectations that the number could disappoint as major economies were under partial shutdown in the early half of May.Apart from the preliminary number, weekly jobless claims number from the US will also be important to watch.Commenting on the rupee, Rahul Gupta, Head of Research- Currency , Emkay Global Financial Services said, “The Covid-19 vaccine-trials temporarily excites the market in the recent past. But there are headwinds due to ongoing US-China trade tiff and worries over the second wave of infection. We can see some FII participation in Reliance right issue in coming days which may limit the fall.”“The USD/INR spot is trading in a very tight range of 75.25-76, and we expect it to remain in this until there are major cues. Either side breakout will give further clarity over the trend,” Gupta added. Summarise this report in a few sentences.
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rupee closes 14 paise lower at 75.80 against the US dollar. no major economic data is expected to release but the focus will be on fresh updates of how the economy reopens after the shutdown. rupee is trading in a very tight range of 75.25-76. if the trend continues, it will be the third successive month of outflows.
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Leading stock exchange NSE today said it hopes to float its initial public offer (IPO) next fiscal even as markets regulator Sebi returned its consent application in a high-profile probe into the co-location issue. The exchange's Rs 10,000 crore IPO has been delayed because of the probe in the co-location matter and the regulator had earlier issued show cause notices to several individuals as well as the exchange, while the role of some brokers is also being probed. "The timeline for the IPO is dependent on the resolution of the regulatory matters with Sebi and we are hopeful we will be able to do the IPO in fiscal 2019," NSE said in a statement. The exchange said that Sebi has returned its consent application in the co-location probe due to ongoing investigations in the case. Further, the bourse said it is committed to resolving the regulatory issues expeditiously. The exchange had filed the settlement application with the Securities and Exchange Board of India (Sebi) in July last year. It had sought a settlement with the regulator in connection with a probe relating to allegations of unfair access to its high frequency trading systems to some brokers. The NSE said it can file the consent application after the completion of the investigations and it intends to do the same in due course. A consent settlement allows entities to settle charges by paying a penalty without admission or denial of guilt. Summarise this report in a few sentences.
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the exchange hopes to float its initial public offer (IPO) next fiscal. the timeline for the IPO is dependent on the resolution of the regulatory issues. markets regulator sebi has returned its consent application in the co-location probe. the exchange had filed the settlement application with the regulator in July last year. a consent settlement allows entities to settle charges without admission or denial of guilt.
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NEW DELHI: A spate of approvals for vaccines, heavy foreign investment flow and improving business environment kept the stock market upbeat last week as the benchmark indices climbed over 4 per cent.Some of these factors will remain the driving force this week as well. On the other hand, an improved industrial production data is also likely to work as a morale booster. Inflation, IPOs and Brexit talks are other factors that may impact market movement.“In the coming week, domestic markets will be waiting for major data points like inflation and import-export updates. The trend in global markets will be guided by developments in Brexit deal talks over the weekend and updates on the expected US stimulus package. Redemption pressure from domestic institutions and possible hike in global volatility are on the watch list,” Vinod Nair, Head of Research at Geojit Financial Services..The central government will release wholesale and retail inflation data for November. The number, which has been rising for a while, is crucial as it will decide how much policy easing can RBI accommodate. “An improvement in November inflation levels compared to the previous month is expected, it will still be at elevated levels,” said Vinod Nair, Head of Research at Geojit Financial Services.London and Brussels face a make-or-break decision on an elusive trade agreement on Sunday, after a week of tension and deadlock that left a tumultuous 'no deal' exit for Britain from the European Union's orbit on Dec. 31 looking more likely than not.British PM Boris Johnson and the president of the EU's executive Commission, Ursula von der Leyen, both said on Friday that a 'no-deal' was now the most likely outcome. A Brexit without a trade deal would damage the economies of Europe, send shockwaves through financial markets, snarl borders and sow chaos through the delicate supply chains across Europe and beyond.After shopping for over Rs 60,000 crore in November, foreign investors have bought Rs 33,383 crore worth of shares in December till now. Market will keep an eye on any reversal in trend.Burger King, that saw massive investor interest during the book building process, will debut on the bourses on Monday. Going by the trend in grey markets, it could list at a premium of 75 per cent.Besides, the IPO of Mrs Bectors Food Specialties will open for subscription on December 15, with the price band fixed at Rs 286-288 per share.The market will also keep an eye on developments related to vaccine approvals. Pfizer’s vaccine has started getting approvals in more countries and it is awaiting a nod in India. On the other hand, likely approvals for other vaccines will also be a key driver.The United States is likely to announce an economic stimulus package soon which will give a fillip to the market. But any uncertainty in talks will act as a dampener. Lawmakers have wrangled for months over a fresh fiscal stimulus package to support an economy battered by coronavirus lockdowns. Summarise this report in a few sentences.
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a spate of vaccine approvals and heavy foreign investment flow kept the stock market upbeat last week. a better industrial production data is also likely to work as a morale booster. inflation, IPOs and Brexit talks are other factors that may impact market movement. the central government will release wholesale and retail inflation data for November. the number, which has been rising for a while, is crucial as it will decide how much policy easing can RBI accommodate.
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The point of yesterday’s debate in Parliament.. PM uses Hate, Fear and Anger in the hearts of some of our people t… https://t.co/YACk5UCpay — Rahul Gandhi (@RahulGandhi) 1532155233000 A day after creating a splash in the Lok Sabha by hugging Prime Minister Narendra Modi, Congress president Rahul Gandhi today said that only way to build a nation was by harnessing love and compassion of people.He said yesterday's debate in Parliament on the no-confidence motion was about the prime minister using "hate, fear and anger" in the hearts of some people to build his narrative, and the Congress countering that through love and compassion."The point of yesterday's debate in Parliament.. PM uses Hate, Fear and Anger in the hearts of some of our people to build his narrative. We are going to prove that Love and Compassion in the hearts of all Indians, is the only way to build a nation (sic)," he said on Twitter.Gandhi gave a 45-minute fiery speech during the no-confidence motion debate in the Lok Sabha yesterday, accusing the prime minister of unleashing "jumla strike" on people in the form of demonetisation, joblessness, Rafale deal, poor state of economy, mob violence, lynching, and incidents of alleged atrocities on Dalits and women.After concluding his speech, Gandhi walked across the aisle to where the prime minister was sitting and hugged him, capping his blistering attack on Modi.The prime minster shook Gandhi's hands but ignored his call to stand so that he could hug the BJP leader. The Congress chief, however, embraced him as he remained seated.Modi initially looked nonplussed and did not stand up to hug him, but recovered quickly and called Gandhi back and patted him on the back. He also appeared to say a few words, which were inaudibleDuring his reply to the debate, the prime minister shot back at Gandhi giving a point-to-point rebuttal on the attack on him. Summarise this report in a few sentences.
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Rahul Gandhi says only way to build nation is by harnessing love and compassion. pm hugged him after 45-minute fiery speech on no-confidence motion. he accused prime minister of unleashing "jumla strike" on people. he later walked across aisle to where pm was sitting and hugged him. he later recovered quickly and called Gandhi back and patted him on the back.
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NEW DELHI: There are 29 known companies where Big Bull Rakesh Jhunjhunwala holds at least one per cent stake.In June quarter, this ace investor stayed put on most of these counters, June quarter shareholding data showed.Jhunjhunwala, often referred to as Warren Buffett of Dalal Street, accumulated shares of Orient Cement and Lupin , but sat tight on 11 other counters during the quarter that saw money chase only select largecaps amid a major selloff in midcaps and smallcaps.Data showed Jhunjhunwala bought 1 lakh fresh shares in Lupin during the quarter to take his holding to 2 per cent from 1.9 per cent at the end of March quarter. At Wednesday’s trading price, Jhunjhunwala’s holding in the pharma major was worth Rs 750 crore.There are many other companies where the Big Bull holds marginal stakes, which often do not show up in the quarterly shareholding data, as companies report on shareholders who hold more than 1 per cent.One such company is Orient Cement, where the ace investor held 1.2 per cent stake at the end of June quarter, the same percentage he held at the end of December quarter.Jhunjhunwala’s name did not figure in March quarter shareholding data of the company, making some investors speculate if the ace investor – who generally stays put on his portfolio for the long term – had shunned the counter completely.Jhunjhunwala did not make any change to his holdings in Aptech, Edelweiss Financial Services, Firstsource Solutions, Geojit Financial Services and Ion Exchange.He also maintained his holdings in Man Infra Construction, MCX, Crisil , Rallis India and VIP Industries . Shareholding patterns of many other companies that he holds in his portfolio are yet to be disclosed and they might show some interesting trends.For example, the market guru had trimmed his stake in Titan, his biggest holding, during the quarter through bulk deals. His stake in the company dropped to 6.54 crore shares, or 7.37 per cent stake, from 7.79 crore shares, or 8.78 per cent stake, as of May 21, 2018.Besides, Jhunjhunwala-owned Rare Enterprises picked 1.30 crore shares in direct-to-home operator Dish TV in the middle of June, accounting for 0.71 per cent stake, NSE bulk deal data showed. Summarise this report in a few sentences.
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ace investor bought 1 lakh fresh shares in pharma giant Lupin. he bought 1 lakh fresh shares in Orient Cement. he also maintained his holdings in MCX, MCX, Crisil, Rallis India and VIP Industries. he also trimmed his stake in titan, his biggest holding, during the quarter.
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While watching Avengers Endgame last year, who would have believed that some of it might actually come true! Remember the scene where Captain America (Steve Rogers) talks to his other superhero counterparts through a holographic meeting? Doesn’t it resemble the official meetings happening over video conferences these days? In the movie, as the world comes to a halt, the Avengers assemble to instil hope and save the day. But in our realm of reality when the world has actually come to a standstill with COVID-19 as our Thanos, how would the warriors from the Media and Entertainment industry spark hope amongst their stakeholders. While the movie was set in the pre-pandemic world, we today see a disruption that’s shaken the delicate balance of demand and supply that once existed between consumers and brands. The viewer doesn’t move from their seat, but sees Season 1 move into Season 2 in a matter of hours as content publishers are now churning content even more than before. In an alternate universe this would be a celebrated state of affairs, only for us to realise that steep growth in eyeballs has not led to desired increase in revenue generation. Much like the terror of Thanos, COVID-19 has caused rampant pessimism in both the consumer and advertiser sentiment. We see the consumer now shift preferences to essential services while the advertiser, struggling to reel from this shift, is pulling back their investment in marketing avenues. Using cultural intelligence to balance sentiment A grim economic outlook amid an ever-growing spread of the virus has turned both consumers and advertisers jittery. The onus thus lies on brands towards taking the right steps to understand their culture and behaviour and integrate them accordingly. As companies and individuals are connected more than before, and global partnerships crucial for success; cultural intelligence has become all the more important. In today's world, brands work with advertisers and consumers from a variety of cultural backgrounds. Success here requires a unique set of skills that comes by being culturally intelligent. This is key to appreciating the customer and advertiser - two core segments that are critical to the top line of media companies. In order to manage consumer and advertising sentiment even better, brands must leverage the most of their capabilities and cultural competency. Should one discard this, they will witness the customer journey fall short, with advertising proving to be an even bigger challenge. Being more outcome driven The tools that brands implement in order to know about the opportunities to leverage are endless. But is it ever enough? What many of them fail to understand is the need to define their consumer’s needs with all the drive and precision that they can muster. With information being the new currency in this digital world, increased investments in R&D are helping brands foray into untapped markets and create immense value through their products and services. The focus is now fast shifting from output to outcome. Going down this route has helped media brands get a much better understanding about themselves, their competition, the advertisers and the market as a whole. Its framework is so well defined that it helps the brand achieve its desired target, creating immense customer and recall value along with keeping sentiments in check. Leading hygiene brands, in the lockdown, adopted this approach. It was a welcome change as one saw them shift focus from a sales pitch to spreading awareness regarding protection against the virus. Such creative and proactive communication, in these times, helps strike the perfect balance between sensitivity and meaningful engagement. Be salient, not silent This is the time for brands to make their mark as consumers look for certainty and reassurance. With the situation being make or break, brands who can promise quality, maximise their opportunities, and have a holistic approach to the wellbeing of their employees, customers and advertisers; this is their time to shine. By being in perfect sync to how they think and feel, this is how leading brands can foster huge amounts of brand equity. While the idea is to maintain an open line of communication, it is important for it to be done without losing the sensitivity and objectivity of the situation. It is this crucial adaptability that decides your brand’s success or downfall in a post-lockdown market. Leading brands across the world let their trademark logos, with slight modifications do the talking. This change took prominence as they used visual representations to reiterate the need to practise social distancing in their advertising campaigns. As these brands catered to their sentiment, consumers are now being part of the positive change that these brands want to see. Be the superhero of tomorrow As the government-mandated lockdown is coming to an end and markets are reopening gradually, aligning communication strategy of the media brand for both customers and advertisers is of utmost importance. Always remember, it didn’t take a single Avenger to save the day. Advertisers and brands will now forge deeper, strategic relationships, collaborating to deliver innovative and integrated solutions that will delight customers. As a brand or publisher, it is the need of the hour to understand the expectations and sentiments of both consumer and advertiser in order to enhance experiences. Each brand will have various challenges, visions and needs. It is the ideas that they implement, that will help them be the superhero. It’s time for them to assemble and save the day. Deepak Lamba is CEO of Worldwide Media. 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a grim economic outlook amid an ever-growing spread of the virus has turned both consumers and advertisers jittery. brands must take the right steps to understand their culture and behaviour and integrate them accordingly. if one discards this, brands will witness the customer journey fall short. ad agencies must be able to understand the customer and the audience. ad agencies must be able to understand the customer and the audience.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Foreign Exchange Risk We operate in foreign countries, which expose us to market risk associated with foreign currency exchange rate fluctuations between the U.S. dollar and various foreign currencies, the most significant of which is the euro. Although approximately 70% of our sales are denominated in the U.S. dollar, we also invoice and collect in the euro, the British pound, the Japanese yen, the Australian dollar and the Chinese renminbi in their respective regions. The U.S dollar is the functional currency for all of VMware's legal entities. At the time a non-U.S. dollar transaction is recorded, the value of the transaction is converted into U.S. dollars at the exchange rate in effect for the month in which each order is booked. As a result, the amount of license and total revenue derived from these transactions will be impacted by foreign currency exchange fluctuations. Additionally, a portion of our operating expenses, primarily the cost of personnel to deliver technical support on our products and professional services, sales and sales support and research and development, are denominated in foreign currencies, primarily those currencies in which we also invoice and collect. As exchange rates vary, operating results may differ materially from expectations. To manage the risk associated with fluctuations in foreign currency exchange rates, we utilize derivative financial instruments, principally foreign currency forward contracts (“forward contracts”), as described below. Cash Flow Hedging Activities. To mitigate our exposure to foreign currency fluctuations resulting from certain operating expenses denominated in certain foreign currencies, we enter into forward contracts. We enter into forward contracts annually, which have maturities of twelve months or less. As of February 1, 2019 and February 2, 2018, we had outstanding forward contracts with a total notional value of $367 million and $318 million, respectively. The fair value of these forward contracts was not significant as of February 1, 2019 and February 2, 2018. Forward Contracts Not Designated as Hedges. We enter into forward contracts to offset the foreign currency risk associated with net outstanding monetary asset and liability positions. Our forward contracts are traded on a monthly basis and typically have a contractual term of one month. As of February 1, 2019 and February 2, 2018, we had outstanding forward contracts with a total notional value of $1,208 million and $1,020 million, respectively. The fair value of these forward contracts was not significant as of February 1, 2019 and February 2, 2018. Sensitivity Analysis. There can be no assurance that our hedging activities will adequately protect us against the risks associated with foreign currency fluctuations. A hypothetical adverse foreign currency exchange rate movement of 10% would have resulted in a potential loss of $154 million in fair value of our forward contracts as of February 1, 2019. This sensitivity analysis is based on the notional value of our outstanding forward contracts as of February 1, 2019 and disregards any offsetting gain that may be associated with the underlying foreign-currency denominated assets and liabilities that we hedge. This analysis also assumes a parallel adverse shift of all foreign currency exchange rates against the U.S. dollar; however, foreign currency exchange rates do not always move in such a manner and actual results may differ materially. We do not, and do not intend to use derivative financial instruments for trading or speculative purposes. Refer to Note J to the consolidated financial statements in Part II, Item 8 Summarise this report in a few sentences.
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of this Form 10-K for additional information regarding our derivative financial instruments.
VMware is exposed to market risk associated with foreign currency exchange rate fluctuations due to their operations in foreign countries. Approximately 70% of their sales are denominated in U.S. dollars, but they also invoice and collect in other currencies. To manage this risk, they use derivative financial instruments, such as foreign currency forward contracts. As of February 1, 2019, they had outstanding forward contracts with a total notional value of $1,575 million. A hypothetical adverse foreign currency exchange rate movement of 10% would have resulted in a potential loss of $154 million in fair value of their forward contracts.
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We're in the middle of a nation-wide lockdown, but its still business as usual for Samsung. Only yesterday, the phone maker quietly launched the all-new Galaxy J2 Core (2020) which could prove to be a crucial addition to the company's line-up in India. The phone is quite interesting as it is an Android Oreo (Go edition) device, and comes fighting in the entry-level segment of the market. The Galaxy J2 Core (2020) comes with modest specs, but owing to its OS which is designed to work smoothly and efficiently on phones that are low on storage and memory, it could still end up making a decent impact on the market. The Galaxy J2 Core (2020) comes preloaded with optimised Google apps out-of-the-box for Android Go which is designed by Google to attract consumers that are going online for the first time in emerging markets like India. Here's what you need to know about the Galaxy J2 Core. Samsung Galaxy J2 Core (2020): Specifications Display: The Galaxy J2 Core sports a 5-inch qHD (960x540) TFT display Processor: The J2 Core (2020) is powered by an unnamed 1.4GHz quad-core SoC RAM: It comes with 1GB of RAM Storage: The device is offered with 16GB of internal storage, which is expandable via a microSD card Rear camera: The phone sports an 8-megapixel rear camera with f/2.2 aperture Front camera: Up front, the Galaxy J2 Core gets a 5-megapixel selfie sensor with f/2.2 aperture Battery: It houses a 2,600mAh battery Samsung Galaxy J2 Core features The biggest highlight of the Galaxy J2 Core (2020) is that it is an Android Go handset that runs Android 8.1 Oreo out of the box. It comes preloaded with custom Google apps like Google Go, Gmail Go, YouTube Go and Maps Go. These apps are designed to take up less storage and memory while offering a smooth experience. However, much like other Samsung phones, it comes with stock Android as it is layered with Samsung UI on top. The Galaxy J2 Core is being targeted at first-time smartphone users or those looking to transition from a feature phone to a smartphone. Powered by its lightweight software, the Galaxy J2 Core (2020) also promises fast performance and Optimised Data Control feature will also ensure low data usage while using the phone. The phone also promises impressive battery life with its 2,700mAH battery pack which working in tandem with the Android Orea (Go edition) installed on the phone should be good enough to last a full day on a single charge. Samsung Galaxy J2 Core: Price and availability Samsung has announced that the J2 Core will be available in India at a price of Rs 6,299, making it the most affordable smartphone currently being sold by Samsung. The phone has been listed on Samsung's website in three colours -- black, blue, and gold. The phone is currently up for purchase, however, there is little clarity on the shipping and delivery of the device. Summarise this report in a few sentences.
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the all-new Galaxy J2 Core (2020) is an Android Go handset. it comes preloaded with custom Google apps like Google Go, Gmail Go, YouTube Go and Maps Go. the phone is priced at Rs. 2,600 and comes with a 2,600mAh battery. it is expected to be released in india in april. a rumored rumored to be a'semi-semi-semi'
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Market regulator Sebi has imposed a penalty totalling Rs 55 lakh on 11 entities for indulging in fraudulent trading in the scrip of Unisys Software and Holding Industries Ltd. The regulator levied a fine of Rs 5 lakh each on 11 entities —Deepa Saurabh Shah ,Sunil Jain, Rahul Gupta, Decent Vincom,Anthony Gayen, Dilip Kumar Mandal, Badri Prasad & Sons, Premsagar Vinimay, Nityadhara Plaza, Conquer Barter and Navdurga Investment Consultants. The regulator had conducted an investigation between January 2010 and November 2014 regarding the scrip of Unisys Software. During the investigation, Sebi found that these entities are connected to each other and had indulged in fraudulent trade practices that created a misleading appearance of trading and contributed to manipulation in the scrip price of Unisys, which misguided the investors in the securities market. By doing so, these entities have violated the provisions of Fraudulent and Unfair Trade Practices (PFUTP) regulations; and accordingly, the regulator has levied fine on these entities. Summarise this report in a few sentences.
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market regulator imposes a penalty totalling Rs 55 lakh on 11 entities. 11 entities have been fined for indulging in fraudulent trading in scrip of Unisys. regulator conducted an investigation between 2010 and 2014 regarding scrip of Unisys Software. scrip price of Unisys was mismanaged and investors misled.
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The COVID-19 pandemic has taken the entire world hostage in less than four months, and the global economy has been hit the hardest with governments across the globe implementing stringent policies including lockdown to control the coronavirus outbreak. The pandemic today presents unprecedented challenges and impediments to businesses in conducting their normal operations. The lockdown across the world has caused delays in the performance of contracts and transactions. Now, the question that arises is whether the current situation can enable parties to a contract to alter their obligations with non-compliance of terms neither being regarded as a "default committed by any party" nor a "breach of contract"? There are certain well-accepted practices for dealing with such extraordinary situations in commercial transactions by the inclusion of force majeure & material adverse effect (MAE) clauses. Also Read: Firms to seek protection under 'force majeure' as coronavirus disrupts businesses Determination of the types of circumstances so covered by the force majeure clause contained in a contract is essential. Provisions of force majeure often cover natural disasters like hurricanes, floods, and earthquakes as "acts of God." Other covered events may include war, terrorism, civil disorder, fire, disease medical epidemics or by reasons of applicable laws or regulations. Broadly, the courts have interpreted the term "Force Majeure" as an event that can neither be anticipated nor controlled by either of the contracting parties. A force majeure clause applies in the context of ongoing contractual arrangements, whereas, an MAE or material adverse change (MAC) clause applies to the allocation of risk in transactions before their closure or completion. For instance, a contract to acquire, invest in, or lend money to a company often contains a clause that allows the acquirer, investor, or lender to cancel the transaction if a material adverse change occurs. Pandemic and related consequences such as government action is a type of event covered by a force majeure clause, however, its impact on the affected party's ability to perform its contractual obligations may vary depending upon contractual terms. It is common for force majeure clauses to specify the impact that the event or circumstances in question must have, in order for the clause to be triggered. References may be made, for example, to the event or circumstances having "prevented", "hindered" or "delayed" performance. These terms require different levels of impact on performance before a party can claim recourse to these clauses. In other words, the force majeure and MAC clauses act as an exception to what would otherwise be treated as a breach of contract. Certain contracts may state that, if a force majeure clause is applied, the contract may automatically be terminated. Also Read: Covid-19 impact: Ashoka Buildcon, IRB Infra to invoke 'force majeure', seek moratorium on loans On the other hand, some contracts may even state that the duty to fulfill the contractual obligation may be suspended for a certain period of time and if the force majeure event is not curbed or treated even after such time, then eventually the contract may be terminated. In India, the nationwide lockdown has gravely affected businesses. Though there cannot be a one-size-fits-all solution to this question, and it depends upon how the force majeure clause is worded in a specific contract; and in the absence of the same, applicable laws related to the same will be required to be taken into consideration. The Indian Contract Act, 1872, despite being a rather old statute, contains specific provisions to combat situations of force majeure or similar circumstances. In this regard, reference can be made to Sections 32 (Enforcement of Contracts contingent on an event happening) and 56 (Agreement to do impossible act) of the Indian Contract Act 1872. As long as it is relatable to an express or implied clause in a contract, it is governed by Chapter III dealing with the contingent contracts, and more particularly, Section 32 of the Indian Contract Act. In so far as a force majeure event occurs which are outside the scope of the contract, it is dealt with by a rule of positive law under Section 56 of the Indian Contract Act. The Supreme Court, way back in 1954 had adverted to Section 32 & 56 of the Indian Contract Act, in SatyabrataGhose v. Mugneeram Bangur& Co case, wherein it was held that the word "impossible" has not been used in the Section in the sense of physical or literal impossibility. However, certain exceptions have been carved into the applicability of force majeure by Indian Courts. More recently, after the break out of COVID-19, while reinforcing the settled position in law that letters of credit are independent transactions and the banks are not concerned with underlying disputes between the parties, the High Court of Bombay in its decision dated 8 April 2020, in the matter of Standard Retail Private Ltd Vs GS Corp & Others held that force majeure cannot be invoked by the purchaser in making payments when the seller has performed its part of the contract. Counterparties may argue that COVID-19 is a force majeure event that excludes them from their contractual obligations. However, the impact of the force majeure event cannot be generalised and shall vary depending on the nature of the transaction and its impact on the same. There exists a fine line of difference between cases of force majeure and those of hardship. In order to correctly identify an individual instance and its possible legal implications, therefore, it is necessary to undertake a case by case analysis. The Indian government and its organisations have recognised the event of COVID-19 as a force majeure and have taken possible steps to ensure the minimum possible hardships to the common people. The Finance Ministry had on February 19, 2020, clarified that the meaning of force majeure shall include the present pandemic as a case of natural calamity and hence if the contract mentions natural calamity in the force majeure clause then non-performance of contract can be exercised by the contracting parties stating COVID-19 as a force majeure event. The Reserve Bank of India (RBI), on March 27, 2020, announced that all commercial banks, co-operative banks, all-India financial institutions, and NBFCs are permitted to grant a moratorium of three months on payment of all installments falling due between March 1, 2020, and May 31, 2020. The Securities and Exchange Board of India (SEBI) has considered the present situation fit to introduce various relaxations in compliance for listed companies. Even the courts and judicial forums have been constrained to either completely close their operations during the lockdown in India or are operating on an extremely limited scale via video conferencing, exclusively for extraordinarily urgent matters. This is also why the Supreme Court (SC) thought it was advisable to notify an extension of the statutory period of limitation for approaching courts to protect litigants from the technical difficulty of time bar. Additionally, the High Courts notified the extension of interim orders for this period of lockdown. Various ministries and government authorities including the Ministry of Corporate Affairs, Ministry of Finance, Department of direct and indirect Tax have also notified extension for mandatory compliances. Considering the worsening impact of COVID-19 on the economy, on March 23, 2020, Finance Minister Nirmala Sitharaman announced that the government is considering the suspension of Sections 7, 9 and 10 of the Insolvency and Bankruptcy Code, 2016, to prevent mass insolvency proceedings if disruption of economic life due to COVID-19 continues beyond April 30, 2020. India's biggest container terminal, run by Maersk at Mumbai port, as well as Adani Ports in Gujarat has already declared force majeure, joining oil refiners Indian Oil and Mangalore Refineries. It is also learnt that several big Indian corporate houses have begun sending notices to their business associates, threatening to discharge themselves of contractual obligations claiming force majeure. For contracting parties, there is no definitive rule to follow. Every commercial entity which has been impacted by the spread of the COVID-19 must first begin to examine the specific provisions of their contracts with the goal of establishing if there is a precise definition of the circumstances of force majeure (or hardship) and their relative consequences. Only on following such an evaluation, can one determine the effects of failure to perform certain services, as well as the actual impact of a series of events on the contractual balance, be concretely ascertained. Summarise this report in a few sentences.
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a global pandemic has taken the world hostage in less than four months. the pandemic presents unprecedented challenges and impediments to businesses. there are well-accepted practices for dealing with such extraordinary situations. clauses include force majeure, material adverse effect, fire, disease epidemics. a clause may be used to prevent a contract from being terminated.
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Crude oil futures jumped 10 percent on Thursday after US President Donald Trump said he expected Saudi Arabia and Russia to reach a deal soon to end their oil price war. Brent crude futures rose more than 11 percent in early trade. By 1032 GMT, Brent was up 10.75 percent, or $2.66, to $27.40, while US West Texas Intermediate (WTI) crude futures rose 10.09 percent or $2.05, to $22.36. Trump said he had talked recently with the leaders of both Russia and Saudi Arabia and believed the two countries would make a deal to end their price war within a "few days" - lowering production and bringing prices back up. Trump also said he had invited US oil executives to the White House to discuss ways to help the industry "ravaged" by slumping energy demand during the coronavirus outbreak and the Saudi Arabia/Russia price war. "Oil prices are seeing their biggest gains in two weeks this morning...There are two key factors...both of which, however, are not enough to save oil prices from further declines," Rystad's head of oil markets Bjornar Tonhaugen said in a daily note. "The first, US oil diplomacy efforts towards Saudi Arabia and Russia ... The second big news driving the positive sentiment was rumours that China will speed up its crude purchases for their strategic stockpiles." Speaking at a government meeting on Wednesday, Putin said that both oil producers and consumers should find a solution that would improve the "challenging" situation of global oil markets. Saudi Arabia supports co-operation between oil producers to stabilise the market but Russia's opposition to a proposal last month to deepen supply cuts has caused market turmoil, a senior Gulf source familiar with Saudi thinking told Reuters. Some analysts said there was still a long way to go before any output cut agreement is struck. With markets facing 15 million barrels per day (bpd) of oversupply in the second quarter and storage maxing out in April, extraordinary curtailments of oil supply will be needed in May and June, said Kang Wu, head of Asia analytics at S&P Global Platts. He said Brent prices need to drop to low-$10 per barrel to force immediate supply curtailment. He forecast that global oil demand would decline by around 4.5 million bpd this year. Saudi Arabia's crude supply rose on Wednesday to a record of more than 12 million barrels per day, two industry sources said, despite a plunge in demand and US pressure on the country to stop flooding the market. "This is a clear sign that the Saudis are not ready to back off in the price war, despite the Russians now saying that they will not increase output given the current oversupply in the market," ING said in a research note on Thursday. US crude stockpiles rose 13.8 million barrels in their biggest weekly increase since 2016 and analysts expected stocks to keep rising as refineries curb output and gasoline demand falls. "At the current price, many US oil exploring energy companies won't be able to make a profit and drilling activities might fall in North America," CMC Markets analyst Margaret Yang said. US shale producer Whiting Petroleum Corp, once the largest oil producer in North Dakota, on Wednesday became the first publicly traded casualty of the oil price collapse as it filed for Chapter 11 bankruptcy. Summarise this report in a few sentences.
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crude oil futures rise 10 percent after president says he expects a deal soon. oil prices are seeing their biggest gains in two weeks, analyst says. oil prices are soaring as rumours of a slowdown in china fuel the positive sentiment. oil prices are soaring as a result of the coronavirus outbreak. a u.s. oil spokesman says he is "deeply concerned" about the oil price war.
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KEY HIGHLIGHTS: Indian SaaS landscape have 1000-plus companies and 6 unicorns SaaS funding in India has grown at 15% CAGR over last 3 years 75% of revenues from Indian SaaS players coming from global sales With over a thousand Software as-a-Service (SaaS) companies -- 150 among them with an annual revenue rate of over $1 million -- India is now aiming at a faster growth than the global SaaS companies. An industry study by NASSCOM with knowledge partners states that India's SaaS companies' revenue has now reached $3.5 billion in FY20, with 75 per cent of the said revenues coming from global sales. The report 'Riding the Storm: Towards the Giant India SaaS Opportunity' says the number of SaaS companies growing in India at a compounded annual growth rate (CAGR) of 30 per cent is nearly one and a half times faster when compared to global SaaS landscape. While the Indian pure-play SaaS companies are dominating the market, the top five companies account for nearly 33 per cent of the market share. Terming the SaaS companies as one of the emerging growth drivers, Debjani Ghosh, President, NASSCOM says that as a technology industry they have barely scratched the surface when it comes to use cases that can be delivered via SaaS to benefit across sectors. "India today needs greater cross-industry collaborations, supportive government policy, and investment in deep technologies, to further the growth of the SaaS industry exponentially." While the SaaS industry in India has been seeing an accelerated growth in the last few years largely led by increased cloud consumption and evolving Software as-a-Service model. The large demand (nearly 75 per cent) for Indian SaaS products comes from global markets. SaaS funding in India is said to have grown by 15 per cent CAGR over the last three years. With nearly 6 unicorn SaaS start-ups, the number is expected to grow higher by 2025 . With the global addressable SaaS market expected to be around $400 billion by 2025, Indian SaaS companies have a big opportunity ahead. While the pure-play Indian SaaS industry is a fraction with revenues of around $2.5 billion, by 2022 it has the potential to grow by six times and hit revenues of $13-15 billion, says NASSCOM . Some of the key recommendations in the report to realise this growth potential include a strong push for procurement of India SaaS products through changing procurement norms, specific incentives and linkages with Indian MSMEs, creating specialised SaaS focussed accelerators and incubators and promotion of tier-II and tier-III cities and non-metro locations to develop SaaS companies in India. The report also suggests looking at non-VC funding model requiring to grow the SaaS industry base. Summarise this report in a few sentences.
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a new study says india's SaaS industry is one and a half times faster than global. a total of over 1,000 companies and 6 unicorns are launching their first product. the global addressable SaaS market is expected to be around $400 billion by 2025. the top five companies account for nearly 33 per cent of the market share.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK The chief market risk factor affecting the financial condition and operating results of the Company is interest rate risk. This risk is managed by periodic evaluation of the interest rate risk inherent in certain balance sheet accounts, determination of the level of risk considered appropriate given capital and liquidity requirements, business strategy, performance objectives and operating environment and maintenance of such risks within guidelines approved by the Board of Directors. Through such management, the Company seek to reduce the vulnerability of net earnings to changes in interest rates. The Banks' Asset/Liability Committees, comprised of senior management, are responsible for managing interest rate risk and reviewing with their Boards of Directors on a quarterly basis their activities and strategies, the effect of those strategies on operating results, the Banks' interest rate risk positions and the effect changes in interest rates would have on net interest income. The extent of movement of interest rates is an uncertainty that could have a negative impact on earnings. The principal strategies that the Company uses to manage interest rate risk include (i) emphasizing the origination and retention of adjustable rate loans, origination of indirect auto loans (Compass only) which have relatively short maturities and origination of loans with maturities at least partially matched with those of the deposits and borrowings funding the loans, (ii) investing in debt securities with relatively short maturities and (iii) classifying a significant portion of the investment portfolio as available for sale so as to provide sufficient flexibility in liquidity management. The Company and the Banks quantify their interest rate risk exposure using a sophisticated simulation model. Simulation analysis is used to measure the exposure of net interest income to changes in interest rates over a specified time horizon. Simulation analysis involves projecting future interest income and expense under various rate scenarios. Internal guidelines on interest rate risk specify that for every 100 basis points immediate shift in interest rates, estimated net interest income over the next twelve months should decline by less than 5%. In utilizing a 300 basis point increase in rates in its simulation model, the full impact of annual rate caps of 200 basis points common to most adjustable rate mortgage loan products is considered. The rate shocks used assume an instantaneous and parallel change in interest rates and that no strategies are implemented in respone to the change in rates. Prepayment speeds for loans are based on published median dealer forecasts for each interest rate scenario. As of December 31, 2000, the Company's estimated exposure as a percentage of estimated net interest income for the next twelve and twenty-four month periods is as follows: Based on the scenario above, net income would be adversely affected (within internal guidelines) in both the twelve and twenty-four month periods. For each one percentage point change in net interest income, the effect on net income would be $659,000, assuming a 36% tax rate. ITEM 8. Summarise this report in a few sentences.
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This text discusses the market risk factors that affect the financial condition and operating results of the Company. The primary risk factor is interest rate risk, which is managed by evaluating the risk inherent in certain balance sheet accounts and maintaining it within guidelines approved by the Board of Directors. The Company uses strategies such as emphasizing adjustable rate loans, investing in debt securities with short maturities, and classifying a portion of the investment portfolio as available for sale to manage interest rate risk. The Company quantifies its interest rate risk exposure using a simulation model, and as of December 31, 2000, the estimated exposure as a percentage of estimated net interest income for the next twelve and twenty-four month periods is within internal guidelines. A one percentage point change in net interest income would have an adverse effect on net income of $659,000.
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Mumbai: India Inc’s September quarter earnings season is set to kick off with the quarterly numbers of software exporter Tata Consultancy Services (TCS) on October 10.Analysts expect a deceleration in the revenue growth for TCS on a year-on-year (YoY) basis, in what is generally considered a seasonally strong quarter.However, an uncertain global environment could weigh on revenue growth. Analysts expect 2.6-3.2 per cent quarter-on-quarter (QoQ) revenue growth for TCS in constant currency terms, while year-on-year (YoY) growth in percentage terms may be contained in single digits.“Q2 is a seasonally strong quarter, but the YoY revenue momentum will be muted for most IT companies and deal closures will be muted due to an uncertain global environment,” brokerage Prabhudas Lilladher said in a note.“We expect the cautious outlook on financial services to continue in Q2 of FY20E,” the company said.It expects TCS’ revenue growth and outlook to be challenged by headwinds coming from European BFSI (banking, financial services and insurance) vertical.The brokerage pointed out that most global currencies depreciated against the US dollar during the quarter, which will imply cross-currency headwinds of 30-70 basis points (bps) for IT companies under its coverage.Jefferies expects 2.7 per cent QoQ constant currency growth (1.8 per cent growth in dollar terms) and around 100bps QoQ expansion in Ebit (earnings before interest and taxes) margin to 25.1 per cent.However, this would still imply a YoY deceleration in revenue growth in constant currency terms to single digit (9.1 per cent) after four quarters, it said.“While TCS does not provide explicit growth guidance, deal TCV, which has averaged at $6 billion over past three quarters, and management commentary would be key to determining prospects for H2, including the possibility of its return to double-digit growth,” Jefferies analysts said.HDFC Securities expects TCS to post 3.2 per cent revenue growth in constant currency terms and cross-currency headwinds of 72 bps, and said the moderation in revenue growth could be due to client-specific issues in the BFSI vertical in Europe.Kotak Institutional Equities expects 2.6 per cent revenue growth in constant currency terms for TCS and cross-currency headwind of 75 bps on a QoQ basis.It said the high base of Q2FY19 is likely result in a deceleration in YoY constant currency growth to single digit.“We expect some moderation in growth from the financial services vertical. Client-specific challenges can also impact the retail vertical. We expect healthy revenue growth for other verticals,” Kotak said in a note.It expects Ebit margin to expand 150 bps QoQ but decline 80 bps YoY. “We expect a sequential increase on account of a marginal depreciation in the rupee, absorption of wage revisions and higher billing days,” the brokerage said.It attributes the YoY decline in margins largely to increase in the US cost structure.Net profit growth appears modest due to completion of buyback of equity. EPS growth stands at 8.4 per cent YoY.“We expect investor focus on demand from the financial services vertical, especially the capital markets segment, order bookings and whether it will be sufficient to hit double-digit growth, impact of talent crunch in the US on margins and effort to reduce subcontracting costs and progress in nascent but the fast-growing products and platforms business,” Kotak said in the note.TCS shares declined 8.34 per cent in the September quarter, underperforming the rally seen in its peers. In the same period, Infosys and HCL Technologies rose 8 per cent and 2.37 per cent, respectively.On a year-to-date basis, while TCS rose 8 per cent, while Infosys and HCL Technologies advanced 19 per cent and 12 per cent, respectively. Summarise this report in a few sentences.
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analysts expect a deceleration in revenue growth for TCS on a year-on-year (YoY) basis. however, an uncertain global environment could weigh on revenue growth. analysts expect 2.6-3.2 per cent quarter-on-quarter revenue growth. however, deal closures will be muted due to uncertain global environment. 'we expect the cautious outlook on financial services to continue in Q2 of FY20E'
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By now it is clear that no government agency is tracking the massive job loss that the COVID-19 pandemic-induced lockdown has caused. On June 1, a union minister admitted it in so many words. This is the first hurdle to designing the right response. However, many non-government agencies, including the Mumbai-based Centre for Monitoring Indian Economy (CMIE) and the Bangalore-based Azim Premji University, are tracking job loss (as well as the impact of relief measures) which can be used for redesigning the responses. Magnitude of livelihood crisis: Job loss and reverse migration The Azim Premji University's survey provides a detailed account of job loss across all three categories of workers - self-employed, regular and casual - in urban and rural areas as well as for male and female workers. Its findings, based on the survey carried out during April 13-May 20, 2020 across 12 states, show a high percentage of job loss across the spectrum - as reproduced below. The percentage of job loss translates into a total loss of 276.2 million jobs. This estimate is arrived at by taking into consideration two factors: (i) total workforce at 465.1 million for 2017-18, as estimated by Azim Premji University's 2019 study that analysed the unit level data provided by the Periodic Labour Force Survey (PLFS) of 2017-18 and (ii) using the same proportion of male and female workers, in urban and rural areas and across all three categories of workers as the PLFS of 2017-18 findings suggest. Also Read: Coronavirus Lockdown XIX: Where is excess liquidity generated by RBI going? The actual numbers could be different, but no official data is available beyond 2017-18. Of the 276.2 million people who have lost their jobs, 103.7 million reside in urban areas while 128.5 million dwell in rural areas (mapped below). The number of actual affected people would be more because a large number of migrants going home are taking their families along. Most of them are going to Uttar Pradesh, Bihar, Jharkhand, West Bengal, and Madhya Pradesh, some of the most backward states with limited financial resources. Additional stress for the slowing economy Every reverse migration puts additional burden on the rural economy. Firstly, there would be no remittances from urban areas to support the rural economy. Some estimates suggest 80% plunge in domestic remittances by the first week of April. Secondly, there is a massive job loss in the rural areas also, reducing the pie further. Also Read: Coronavirus Lockdown XVIII: Why India urgently needs SOPs for decision-making Urban areas are now without a significant chunk of workers. Even if they return and economic activities begin immediately, the fear of the virus, social distancing norms in factories, offices, and housing would prevent their re-hiring en masse. Re-hiring would be staggered. But more importantly, there may not be enough room or economic activities for re-hiring them for many months. Here is why. Going back to pre-pandemic GDP growth rate may take long The latest national accounts statistics released on May 29, 2020, shows that the GDP growth in the last quarter of FY20 (January to March) slumped to 3.1% - the lowest in 44 quarters (11 years since 3.09% in FY09). Also Read: Coronavirus Lockdown XVII: The economics behind India's Rs 21 lakh crore package The real state of the economy in the first quarter of FY21 would be far worse (would be known in August). The quarterly data released for FY19 and FY20 shows agriculture recording far better growth, touching 5.9% in Q4 of FY20, which is higher than the rest but here is a catch. Its share in total GVA for Q4 of FY20 is 15.6%, while it supports 43.21% of the total workforce of India, as per the ILO data for 2019 (that would closely match with FY20). Evidently, the income generated from agriculture is too low to adequately support the additional influx even with higher growth. The growth in manufacturing has been negative for three quarters and in construction for two. The numbers could be far worse in the current fiscal, seriously limiting their capacity to absorb workers. In Q4 of FY20, the manufacturing's share of GVA is 17.8% while its share of workers is 11.4%; the share of construction in GVA is 7.9% while its share of workers is 12.3% (using ILO estimates for 2019 for workers' share). Also read: Coronavirus Lockdown XVI: Why India should be wary of excessive push for liquidity or credit The current fiscal (FY21) is likely to witness negative GDP growth, as the RBI governor said on May 22. Economist Pronab Sen warns that if the stimulus is not sufficient (fiscal spending of 10% of the GDP), the negative growth may spread to the next fiscal (FY22), dragging India into a depression. All this would mean the level of economic activity may not be good enough for a year or more to accommodate all those who have lost jobs and livelihoods (the self-employed, for example). The overall growth rate has to reach at least the pre-COVID-19 level for that. That is why India needs to recalibrate its strategies towards workers and their families. Recalibrating response to human suffering The Azim Premji University's survey also maps how the lockdown and subsequent job and livelihood losses have impacted households. Also Read: Coronavirus Lockdown XV: Not just stimulus 2.0, getting fiscal mathematics right is critical too It says 83% of urban and 73% of rural households are consuming less food than before, which is expected in such circumstances. It also says that 64% urban and 35% of rural households don't have enough money to buy a week's worth of essentials. This should be a cause of worry. As for the relief measures, 84.8% of the rural and 65% of urban households received ration; 41% of vulnerable households in rural areas and 23.8% in urban areas received Jan Dhan Account transfers; 26% of rural households received the PM-KISAN transfers and 58% and 36% of households in rural and urban areas, respectively, received at least one cash transfer. The task is, therefore, to reach out to the left out vulnerable households with more food supply through the public distribution system (PDS) and more cash transfers. Idle construction workers' fund, inadequate MGNREGS allocation Though the March relief package allowed Rs 52,000 crore lying idle in the construction workers' welfare fund to be transferred to them, there is no indication of any progress. This is primarily because the fund has been largely sitting idle for decades. Also Read: Coronavirus Lockdown XIV: India needs to own and indulge its workers; they are more vulnerable than ever This fund resulted from two central laws of 1966 - The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act of 1996 and The Building and Other Construction Workers' Welfare Cess Act of 1996. In 2018, the Supreme Court took note of official apathy in not passing on the benefits and entitlements to construction workers, pointing out that millions of construction workers had not been identified and their whereabouts not known. It also pointed to a Comptroller and Auditor General (CAG) report which had red-flagged the same. Since then, two new labour codes have been introduced in the Parliament - Occupational Safety, Health and Working Condition Code (OSFWC) of 2019 and Code on Social Security (CSS) of 2019 - proposing to repeal these laws. Thus, the utilisation of the fund is suspect. Also Read: Coronavirus Lockdown XIII: Five steps to rebuild a post-COVID economy Another key tool for relief is the rural job guarantee scheme, MGNREGS. An additional allocation of Rs 40,000 crore has been made in the Rs 21 lakh crore relief package, taking the total allocation for FY21 to Rs 100,568 crore. However, Rs 11,000 crore of this is pending dues for FY20, reducing the availability to Rs 89,568 crore. Prof. Reetika Khera of the IIM-Ahmedabad, who has been studying the MGNREGS works, estimates that Rs 2.8 lakh crore would be needed to provide 100 days of work to the existing 140 million job card holding households- much more than the current allocation. Accommodating additional demand for work from the migrants and those who lost their jobs in rural areas would require additional allocation. Coronavirus Lockdown XII: Why the wealthy should be taxed more Job scheme in urban areas and assistance for self-employed For years economists have been seeking a MGNREGS-like job guarantee scheme for urban areas because of high unemployment. The current situation highlights the need for this even more. This will not only benefit those who have lost jobs and stayed back, but also those who return to seek jobs but would have to wait for many months before the economic activities pick up to re-hire them. The self-employed workers constitute 52.2% of India's total workforce and have been badly hit due to the lockdown too. They are the ones who run micro-enterprises, that constitute 99.46% of units and provide 97% of employment in the MSME sector - according to the ministry of MSME's 2018-19 annual report. Also Read: Coronavirus Lockdown XI: Why India's health policy needs a course correction These micro enterprises are more or less evenly spread in rural and urban areas and on an average, employ less than 2 workers, meaning that many are a one-man show. All credit facilities for the MSME sector announced so far (Rs 3 lakh crore emergency working capital or Rs 20,000 crore subordinate debt) are more likely to bypass the micro-units. Even the Fund of Funds, set up for equity infusion of Rs 50,000 crore (but only with a corpus of Rs 10,000 crore), is meant for expansion in size and capacity of MSMEs and encouraging their listing in stock markets. This too is unlikely to offer much help to micro-enterprises under a threat to survive. It is for all these reasons that India's response needs to be redesigned so that a large part of its population rides over the multiple crises facing them. Also Read: Coronavirus Lockdown X: Why it can't be business as usual for India Summarise this report in a few sentences.
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of the 276.2 million people who have lost their jobs, 103.7 million reside in urban areas while 128.5 million dwell in rural areas. reverse migration puts additional burden on the rural economy. a large number of migrants going home are taking their families along. a remittance from urban areas would be no longer available to support rural economy. a remittance from urban areas would be a huge burden.
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The Reserve Bank of India has turned to futures market to check the rupee 's plunge as the local unit hit all time low at 69.10 a dollar, dealers said.It is said to have sold over $500 million in July futures contract, a move that has helped the local unit to erase some of its early losses, they said.At 10.35 hours the rupee is trading at 68.97/$ versus 68.63 closed on Wednesday. It hit record low at 69.10 sliding past its earlier all time record low 68.86 touched on November 24, 2016.The central bank normally intervenes in the spot market to curb wild swings in the currency market. But such move increases or reduces rupee liquidity or available cash in the banking system distorting inflation dynamics and bond yields, two important factors for monetary policy framing.In the past few months the benchmark bond yields have been rising. It pierced the psychological mark at 8% raising overall borrowing costs. Such phenomenon calls for more open market operations (purchase), a market matrix that helps bringing down yields.Under OMO purchases, the RBI buys bonds infusing liquidity in the system. Now, if the central bank conducts spot market intervention to sell dollars and buy rupees, it nullifies the OMO effects reversing the liquidity."The intensity towards spot market intervention could low while futures market makes sense for the RBI," said a treasury head of a large bank.Also, the RBI does not want to show any desperation as the rupee weakening is apparently paints negative picture the country, that is going for general elections."All other emerging market currencies including Chinese yuan have lost value to the dollar with investors seeking safety of safe heaven US-backed asset.The rising crude prices too threatens to upset fiscal math for countries that meets their requirements through overseas shipments.Moreover, India tends to lose more after US administration warned of economic sanctions on countries importing oil from Iran, a major supplier for India. Summarise this report in a few sentences.
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rupee is trading at 68.97/$ versus 68.63 closed on Wednesday. it hit all time low at 69.10 sliding past its earlier all time record low 68.86. RBI normally intervenes in the spot market to curb wild swings in currency market. but such move increases or reduces rupee liquidity or available cash in the banking system.
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Second Nature While this blog applauds the India that is one of the fastest growing economies in the world, it is acutely aware of the other end of the spectrum - of the India that desperately stretches its hand for the children of a lesser god. Less Summarise this report in a few sentences.
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the world's fastest growing economy is India. but it is acutely aware of the lesser gods in the world. the less fortunate are the children of a lesser god. the children of a lesser god are the children of a lesser god. the children of a lesser god are the children of a lesser god. the children of a lesser god are the children of a lesser god.
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Former Karnataka Chief Minister H D Kumaraswamy has called for citizen-centric measures and stressed the need to lower the cost of living, as he cautioned the state and Central governments about the impact of COVID-19 lockdown on economy and people in-tuen. Calling for measures like partial waivers of EMIs, rents, school fees, cut in petrol and diesel prices, the JD(S) leader said, the loss of revenue may be offset partially by imposing COVID cess on the ultra rich. “According to RBI and international economic assessment agencies, the GDP growth rate of the country is expected to fall to a historic low. Such a dire situation calls for citizen centric measures like full or partial waivers of EMIs, rents, school fees and other levies,” Kumaraswamy tweeted. Stating that the economy won’t bounce back within a very short period, he said, it is important to lower the cost of living as spending power of the consumer has depleted. “The govt must cut the petrol and diesel prices. The loss of revenue may be offset partially by imposing COVID cess on the ultra rich,” he added. Also read: Check latest Coronavirus updates here: Further, Kumaraswamy said, it is high time the government announced schemes to save livelihoods of people, especially those in the unorganised sector. The government must provide immediate relief to farmers, construction workers, cab and auto drivers, garment workers, etc, he added. India’s GDP is likely to range between a decline of 0. 9 per cent and a growth of 1.5 per cent in the current financial year, with the economy undergoing a “turbulent” phase caused by the coronavirus-induced lockdown, according to a recent report by CII. Summarise this report in a few sentences.
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former Karnataka chief minister calls for citizen-centric measures. he warns against imposing COVID cess on the ultra rich. he says the loss of revenue may be offset partially by imposing cess. the economy is expected to fall to a historic low. he also urges relief to farmers, construction workers and cab and auto drivers.
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NEW DELHI: As India takes the first steps to return to normalcy from two-and-a-half months’ lockdown, a leading economist said high-frequency indicators are foretelling a major collapse ahead for various sectors.Prospects for the economy are not looking encouraging at all. The country will not just battle a sharp rise in virus cases but also a demand destruction of unprecedented levels, said Sonal Varma , MD and Chief Economist (India and Asia ex-Japan), Nomura The government over the weekend said most businesses will reopen on June 8. Estimate as of early April showed the economy was operating at 25 per cent capacity, which increased to 60 per cent by April 20 when the first round of easing was announced. In early May, the same increased to 70 per cent and the same will be substantially higher from June 8.“Covid-19 will lead to much weaker final demand and cause a bigger shock to not just bank balance sheets but also households, companies and the government. The medium-term outlook for India is a lot more negative,” Varma said.Speaking at the Nomura Investment Forum Asia 2020, she said the hit on consumptions and services have been substantial and unprecedented.“The biggest hit in growth will be in the April-June period. Our expectation is GDP will be down 15-20 per cent year-on-year for that quarter. Second quarter growth is likely to be a complete write-off,” she said.Varma, however, highlighted that some of the consumer discretionary sectors like auto may see an immediate surge in sales due to pentup demand but once this phase gets over, there will be a phase of ‘new normal’ demand. And that phase will be at much lower than the pre-Covid levels as consumers will vie for cash.The auto sector, which reported zero sales in April, saw some recovery in May, but the numbers were still far from the pre-Covid levels. Thanks to the expected recovery, shares of automakers have since seen a jump. Nifty Auto index has gained over 9 per cent in last one month, led by a 27 per cent surge in M&M shares.Nomura said India’s economy will contract 4.8 per cent year-on-year during FY21, but will bounce back to grow 7.9 per cent next financial year on a significantly lower base.Concerned by the growth outlook, Moody’s on Monday downgraded India’s sovereign rating to the lowest investment grade. But Varma does not see a further downgrade to ‘junk’ status anytime soon, “as rating agencies set a very high bar to cross to that level.”“Rating agencies will wait to see whether there is a material deterioration before they ‘junk’ India. So, at a minimum, we are looking at six months of waiting period before any action, which is enough time for us to take a call if India is moving towards that status,” the leading economist said.She, however, said going by the commentary from Fitch, it is likely to downgrade India’s outlook to ‘negative’. S&P, however, may take a little longer to decide if it wants to take a similar step.The impact of the lockdown is going to be crippling for many businesses, especially small and medium enterprises which operate on low cash buffers, said Varma. This, in turn, will affect the already non-existent job market.“Companies have gone through two months of zero sales even as they continued to pay fixed costs. So the hit on them is much more severe and they will likely be in cost reduction mode. This will mean job cuts and halt to capex plans, which will further lead to reduction of corporate demand,” she said.As per CMIE, a private surveyor, India’s unemployment rate stood at 23.2 per cent, with urban areas seeing over a quarter of its working population out of jobs while rural areas witnessing 22.3 per cent of its population unemployed as of June 1.Poorer states that supply much of the working migrant population, such as Bihar and Jharkhand have unemployment rates of 46 and 59 per cent, respectively.Balance sheets of the financial sector, which was already weak due to the 2018 cycle of non-performing assets (NPAs), is again a major concern going ahead as analysts, including Varma, expect a spike in bad loans.NBFCs, which count commercial real estate and MSMEs among their main borrowers, are already seeing defaults. Gross NPAs of NBFCs were at 6.1 per cent at end of March 2019. Varma expects this to rise to high double digits soon.The Covid-19 shock will result in another cycle of NPAs for the banking sector as they also have exposure to NBFCs and MSMEs, she said.“Even on the retail side, if household balance sheets are being hit, salaries are being cut and jobs are not getting created, there will be some spillover, especially in the unsecured lending business. Overall, the gross NPAs of the banking sector will rise to mid-teens from 9.5 per cent right now,” Varma projected, adding that the true status will only be known after the moratorium period ends.Underlining that the stimulus announced by the government recently is not going to be enough as they barely provided fuel to survive, Varma said there was a need for further stimulus.The government, in a series of announcements last month, outlined various measures to attract investments and provided relief to the most affected segments of society and businesses. However, there was criticism that none of them were focused towards an immediate boost to the economy.“These fiscal measures are not going to fuel growth. The final demand is going to be weak. There will be a need for the government to step in again with some sort of demand stimulus. Similarly, there needs to be a clear solution in the financial sector as well,” she said.Nomura expects RBI to continue its accommodative stance and deliver another 50 basis points rate cut. The central bank has already reduced its short term lending rates to a record low of 4 per cent.Varma said beyond a point cutting rates and easy liquidity would not help if that does not reach the borrowers who need them. “That is why weak corporate balance sheets, rating downgrades and credit risk aversion among the lenders need to be addressed,” she said.“It is no longer about cutting rates and injecting liquidity. The problem is not credit risk and policy has to address that. The financial sector, which is going to go through a deteriorating asset quality cycle, will not take that risk. That is why the risk has to be taken by the Government of India,” she said. Summarise this report in a few sentences.
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government says most businesses will reopen on June 8. biggest hit in growth will be in the April-June period. auto sector saw a recovery in may but numbers were still far from pre-Covid levels. nifty auto index has gained over 9 per cent in last one month. a 5% rise in shares of automakers has helped boost the stock market.
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Spurt in PMI indicates strong inflow of new orders and strengthening of manufacturing sector growth, Economic Affairs Secretary Subhash Chandra Garg said Friday. The country’s manufacturing sector performance further strengthened in February and touched a 14-month high, driven by acceleration in sales, output and employment, a monthly survey showed. The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) rose to 54.3 in February, from 53.9 in January, amid a robust improvement in business conditions. This is the 19th consecutive month that the manufacturing PMI remained above the 50-point mark. In PMI parlance, a print above 50 means expansion, while a score below that denotes contraction. “Manufacturing PMI at 54.3 in Feb is 14 month high and indicates strong inflow of new orders. Q4 2018-19 should mark further strengthening of manufacturing GVA and upward movement of GDP growth,” Garg said in a tweet. As per official estimate released on Thursday, India’s economic growth slipped to a 5-quarter low of 6.6 per cent in October-December period of 2018-19, mainly due to poor performance of farm, mining and manufacturing sectors. The Central Statistics Office (CSO), which releases the national account data, had last month revised its forecast for GDP growth for 2017-18 to 7.2 per cent from the earlier estimate of 6.7 per cent. It also revised the actual growth rate in 2016-17 to 8.2 per cent from the 7.1 per cent estimated earlier. The downward revision of GDP growth in the current fiscal to 7 per cent does not indicate slowing down of economy as it is calculated on the basis of higher growth projections by the CSO for the previous fiscal, Garg had said. Summarise this report in a few sentences.
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manufacturing sector performance touched a 14-month high in february. the country's manufacturing sector performance further strengthened in february. the economy slipped to a 5-quarter low of 6.6% in October-December period of 2018-19. the central statistics office (cso) had last month revised its forecast for GDP growth for 2017-18 to 7.2 per cent from the earlier estimate of 6.7%.
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(REUTERS) Smruti Koppikar As a portrait of our times, it could not be more stark and sombre. Against a backdrop of brooding blues and deep greys are buildings with balconies, each of which holds a cheery urban nuclear family clapping and banging plates, while a caravan of mostly men with meagre belongings — a few families with children in arms — winds its way out of the frame. Titled ‘The Social Distance’, this cartoon by artist Hasif Khan for Ananda Vikatan, a popular Tamil weekly, drew much flak when it appeared in the first few days of India being locked down. The initial 21-day lockdown has been extended till May 3. During this time as masses of migrant workers defied the lockdown in Surat (twice in a week), Mumbai, Delhi and other cities, and the full import of that struck home. The balconied migrated to work-from-home routines, missed their Zumba classes, their kids transitioned to online classes, and they discussed in cosy class-defined bubbles if migrants were “morons” or “could not observe rules”. Large masses which make India’s cities had become visible for the first time in many decades. Governments struggled to provide food rations or cooked meals to them; lakhs were fed but many left out. Chief Ministers spoke in regional languages to assure them that they would not go hungry and must stay where they were. Yet, hundreds of thousands trooped out when they could, if there was the slimmest chance of returning home as Surat or Mumbai’s Bandra incident showed. What does this say? 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 First, cities offer work and economic opportunities to millions, many of whom do not own land or whose lands in villages yield little. India’s lingering agrarian crisis has made work-related migration inescapable for hundreds of thousands of people. Young men from Assam and Sikkim have travelled across the breadth of India to work in ice cream parlours in Pune, they have migrated from Odisha and Bihar to Tamil Nadu and Kerala to work in restaurants or as electricians and plumbers, from Tamil Nadu, Uttar Pradesh and Bihar they have found work in diamond and textile factories in Surat, and from all over they have trooped into Mumbai and Delhi. This is economic security — the ability to earn a few thousands and send most of it back home. Economic security, however, does not automatically bring social security, let alone social comfort. For almost all those who migrate for work, their idea of home is the house they left behind, families they separated from, and community networks they slackened from. In times of distress — such as this one where the threat of an incurable pandemic and the world’s most stringent lockdown with weeks of no work, no wages, and an uncertain future — they seek social security. It makes them desperate enough to walk for miles to reach home or gather in hordes if there are chances of catching trains or buses to somewhere near home. Second, this basic understanding of urban life escaped even those at the helm. In Prime Minister Narendra Modi’s first announcement of a lockdown that brought India to a grinding halt, there was no reference to millions of migrant workers for whom economic and social security lie in different locations. Modi sought to address this lapse in his second address on April 14 extending the lockdown, assuring workers that their basic needs would be taken care of. Indeed, states have reached out to hundreds of thousands of people stranded in cities. If basic needs mean rations or food, then governments have tried to do their bit, but basic needs include emotional needs such as being with families which have not been met. A government that sent flights to bring back Indians from other countries — they too are migrants chasing economic dreams — could not arrange road or rail transport to take other Indians back to their homes. As one of them told this author, “passport walon ki bimari ration card walon par bhaari” (the disease of passport holders is a heavy burden on ration card holders). Third, India’s cities are cleaved into glitter and grit in ways that their civic design does not adequately provide for the latter. Nothing in recent times has shown this as much as the pandemic. There are two cities within an urban boundary: one equipped to cope with lockdowns, the other simply not so. Those of us who have homes that can double as workplaces were mildly inconvenienced since the March 25 lockdown. Those who grit it out on daily or weekly wages, living in impossibly cramped settlements which mocked the very idea of ‘social distancing’ or who simply live in their now-shut workplaces, had nowhere to go except back home to villages. This must call into question the fundamentals of India’s urban design and planning in which affordable basic housing — a non-negotiable aspect of building cities — is at best a government’s mission statement and at worst a joke. A housing crisis has lurked on our urban horizons for decades, but has gone unaddressed or camouflaged in ‘smart city’ concepts. The informal settlements or slums that dot our cities are manifestations of the failure of urban design and economy. If migrants were comfortably housed in cities with their families, if landlords or land mafias did not demand rent from them, there might have been fewer of them on the roads defying the lockdown. Fourth, the myriad kinds of work they do power the urban economy, both informal and formal, but they remain largely invisible to fellow citizens and governments. The migrants are our dhobis, drivers, domestic help, tailors, mechanics, waiters, delivery men, garbage sorters, lavatory cleaners, designers in leather units, vegetable sellers, street food vendors, factory workers, construction labourers, even rat catchers. Their work is necessary in cities. There are, data shows, more than 100 million migrant workers who make the semi-permanent, male-dominated, remittance-based migration wave that’s unique to India. Their work is welcome, but not their presence in our cities. This is not a sustainable model of urban development whether there is a pandemic or not. COVID-19 and lockdown have only underlined this truth. Smruti Koppikar is a senior Mumbai-based journalist and urban chronicler. Views are personal. Summarise this report in a few sentences.
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the initial 21-day lockdown has been extended till may 3. migrant workers defied the lockdown in Surat (twice in a week) and Mumbai, Delhi and other cities. the'social distance' cartoon by artist hasif. Khan for ananda vikatan drew much flak when it appeared in the first few days of india being locked down.
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Gold Rates - Spot & Futures (.995 purity) (MCX) Date Gold Spot Price Rs/ 10 grms (AHMEDABAD) Gold Future Price Rs/ 10 grms Expiry: 05-Dec-2023 24-11-2023 61229 61365 15-11-2023 60029 60120 14-11-2023 60029 60066 13-11-2023 60029 59835 12-11-2023 60029 59775 01-11-2023 0 60742 31-10-2023 61018 61237 30-10-2023 61027 61268 27-10-2023 60629 61238 26-10-2023 60764 60968 25-10-2023 60311 60794 24-10-2023 60418 60544 GoldGold Technical Charts NEW DELHI: Gold and silver prices rose on Thursday as poor macro data underscored the extent of damage coronavirus has done. A fast rise in coronavirus cases in India also increased worries of investors , forcing them to safe havens.Businesses and citizens in less affected areas in India are enjoying relatively more freedom in movement. Meanwhile, the total number of Covid cases rose sharply to 52,952 with 1,783 deaths.Gold futures were up 0.27 per cent or Rs 123 at Rs 45,494 per 10 grams. Silver futures gained 0.20 per cent or Rs 85 to Rs 41,930 per kg.Spot gold markets remained shut due to the lockdown to prevent spread of Covid-19, according to HDFC Securities Globally, gold rose after a 1 per cent drop in the previous session as grim US economic data underscored the impact of the coronavirus outbreak, while investors awaited the weekly jobless claims report from the world's largest economy.Spot gold gained 0.4 per cent to $1,691.98 per ounce by 0043 GMT. U.S. gold futures rose 0.4 per cent $1,695.60.Orders for German industrial goods fell in March at their steepest rate since records began in 1991 as demand collapsed due to the outbreak.Palladium rose 0.5 per cent to $1,805.99 an ounce, platinum gained 0.7 per cent to $753.76 and silver was up 0.3 per cent at $14.97. Summarise this report in a few sentences.
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gold futures rose 0.27 per cent or Rs 123 at Rs 45,494 per 10 grams. silver futures gained 0.20 per cent or Rs 85 to Rs 41,930 per kg. gold markets remained shut due to the lockdown to prevent spread of Covid-19. gold rose after a 1% drop in the previous session. meanwhile, the total number of Covid cases rose sharply to 52,952 with 1,783 deaths.
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The ongoing global trade war between US and China – two of the biggest economies in the world – have injected fears in the stock markets and investors alike in the past few weeks. Not only are the investors confused on how to go about it, the volatility has increased manifold in the bourses. However, the trade war fears will soon wane away, believes veteran market investors Sandip Sabharwal, bringing back normalcy to the markets. In an interview with ET Now, Sandip Sabharwal said that fears related with ongoing trade wars will die out exactly the same as as what happened in the case of rising bond yields in the past few weeks. The macro are bound to improve and markets are most likely to move on an upward bias as a result, he added. “Consolidation is likely to get over soon and set the tone for fresh move up,” Sandip Sabharwal told ET Now on Monday. Sharing his market outlook going ahead, the market expert said that cheap construction and industries are most likely to lead the upward surge in the market going ahead. Summarise this report in a few sentences.
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the ongoing global trade war between US and China has injected fears in the stock markets and investors alike in the past few weeks. veteran market investors Sandip Sabharwal believes that the trade war fears will soon wane away, bringing back normalcy to the markets. cheap construction and industries are most likely to lead the upward surge in the market going ahead, he said.
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The Vishwa Hindu Parishad has demanded stern action from the government against the organisers of Tablighi Jamaat at Markaz Nizamuddin in Delhi that has derailed the fight against the COVID-19 outbreak. It said that the venue has become a ‘corona factory’ and termed the incident as shameful and very unfortunate. “It seems that this incident may shatter the 18-day struggle against the novel coronavirus and the achievements of the pan-India lockdown,” it said. “The Nizamuddin Markaz has become the epicentre of COVID-19 quake in India,” the VHP added. It said that holding the congregation at the time of coronavirus was an unpardonable crime, but the Markaz officials are daring to hold the administration and police accountable. The outfit also questioned the silence of ‘secular intellectuals’ of the country who went to places like Shaheen Bagh and supported the protestors and their countrywide violence against the CAA. “Their silence on this development is surprising. Our appeal to them is to use their influence to stop such activities,” it said. The Vishwa Hindu Parishad also urged the Centre and states to quarantine these members in those buildings and be treated, “so that the pandemic remains confined and curbed there”. It also made an appeal to the Muslim community to voluntarily close all religious places. It also demanded from the government to cancel visa for foreigners who attended the event. The Nizamuddin Tablighi Jamaat congregation has emerged as the biggest COVID-19 hotspot in India. As many as 450 fresh cases of infection emerged on Wednesday to take the tally over 1,900 with at least 50 deaths. Authorities said they have identified more than 6,000 people across states who attended the event between March 1 and 15. More than 43,000 people have died due to COVID-19 worldwide so far since December, while more than 8.6 lakh infections have been reported so far. Nearly half of the world population is currently under partial or full lockdown, taking a big toll on the economy as well. Summarise this report in a few sentences.
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the 450 fresh cases of infection took the tally over 1,900 with at least 50 deaths. the Vishwa Hindu Parishad urged the centre and states to quarantine these members in those buildings and be treated. it also demanded from the government to cancel visa for foreigners who attended the event. more than 43,000 people have died due to COVID-19 worldwide so far since December.
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Bengaluru-based financial services platform Groww has gone live with stock trading, expanding its horizon beyond mutual funds and gold. After testing the service for a few months, Groww recently opened it for its users, claiming to have already opened one lakh accounts. Moneycontrol was the first to write, on May 28, that Groww was beta testing a stock-trading platform. “We needed to get the broking licence then build the product which took some time. We have been doing internal testing since October 2019 and added more users in April this year. Now, we are opening it for others as well,” chief executive officer Lalit Keshre told Moneycontrol Its users had been demand stock trading since 2018 and the company had been working on it for quite some time. The company was targeting the next million investors, young traders who would be attracted to the product because of the simplicity and the user friendliness of the platform, he 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 Having started with buying and selling of stocks, the startup is working on futures and options trading, intra-day trading and others features that it hopes to take live over the next few months. Any new player in a space has to go up against the incumbents and in stock-trading, Groww will have to fight for its share with the largest stock-broker in the country Zerodha, another tech startup. ALSO READ: Zerodha makes TOTP mandatory to counter phishing; here is how to get one Speaking of competition, Keshre said that they were trying to make stock-trading more democratic and expand the market. “When we had entered into mutual funds, there were already entrenched players there, even in stock-trading, there is competition but our aim is to grow the market and chase new investors and traders,” he said. During a previous interaction Abhishant Pant, an angel investor in fintech startups, had said the coronavirus outbreak had thrown up opportunities as well as challenges for new players in the fintech ecosystem. Groww could leverage the growing interest among Indians in stock trading as many were trying to lap up some scrips cheap during the pandemic, he said. Given the economic stress, many investors with surplus wealth might chose to save money rather than invest it and that was a challenge. “Markets cannot be predicted, we can only create good products and offer de-risking capabilities to our investors, we are building Groww along those principles,” Keshre said. Groww was launched in 2017 by former Flipkart executives Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal. The startup is backed by YCombinator, Sequoia Capital and Ribbit Capital. In terms of equity support, Keshre said they were in a comfortable position as a low burn gave them quite a long runway. Summarise this report in a few sentences.
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groww has gone live with stock trading, expanding its horizon beyond mutual funds and gold. the company claims to have already opened one lakh accounts. a vaccine works by mimicking a natural infection. it also helps quickly build herd immunity to put an end to the pandemic. groww is a financial services platform based in Bengaluru.
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Over the years, luxury housing in India has witnessed significant prominence and appreciation, making it one of the most dynamic segments of the real estate sector. The modern aesthetics of real estate infrastructure and the technology-driven lifestyle have transformed the way we live in India. Today, these modern homes are considered as a lifestyle statement, reflecting an individual’s aspiration and social status. A rapid rise in the number of high net-worth individuals (HNIs), increased aspirations, transforming lifestyle and investment interest from Diaspora are the major factors pushing the demand of luxury housing. The globetrotter population of India is constantly rising and since they are well exposed to the international standards of living, they look for such amenities and lifestyle in their dream homes as well. According to a Global Wealth Report, since 2000, wealth in India has grown 9.2% per annum, faster than the global average of 6% and this is quite a favorable sign for the real estate sector. Therefore, owing to the increased purchasing power and growing unending desires, many Indian home buyers are also catching up with the pace to buy elite homes. The large chunk of NRI investment in Indian real estate comes into the luxury segment, making them the biggest driver for the growth of this sector. Catering to the growing demand of luxury homes, developers focus on creating unique living spaces. They are coming up with the various formats of technology-enabled homes, apartments, penthouses, villas, bungalows, ultra luxury houses etc. Looking at the absorption rates of luxury housing over the last three years, the sector shows the signs of definite growth in the coming years. Below are a few trends which will continue to redefine the luxury housing in India: Branded Luxury Real Homes: Branded homes are launched under the banner of international luxury hospitality or lifestyle brands and cater to the exclusive niche category of buyers. These homes offer a unique lifestyle of global standards with hospitality services from the finest brands. This trend is fast growing in cities like Delhi-NCR, Mumbai, Pune etc. Themed Villas: Themed housing has gained a lot of attention amongst homebuyers. To cater to such evolving tastes and aspiring demands of the buyers, developers are launching exotic and exquisite theme-based projects. Smart Homes: Owing to the constant technological advancements, the concept of smart homes has become increasingly popular and has tremendous potential to grow in the future. With the hi-tech technology-enabled systems, it provides the convenience and comfort in the day to day life of home owners. It intends to incorporate comfort, entertainment, mobility and security, providing occupants with connected solutions all the time. Luxury Homes Within The Reach: It is a niche market, gaining a lot of attention from the homebuyers of middle income group. This home consists of major amenities and features of a premium property and is affordable to a larger segment of the population. The growth of the Indian economy clubbed with the aspiring lifestyle of people living in the metros drives the demand of this segment. It lets middle income group fulfill their aspirations of living in a luxurious home. Hence, the luxury real estate is brimming with all such trends and developers catering to the segment are striving to launch the best of their offerings to attract homebuyers. (By Pankaj Bansal, Director, M3M Group) Summarise this report in a few sentences.
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luxury housing in india has witnessed significant prominence and appreciation over the years. rapid rise in the number of high net-worth individuals (HNIs) and increased aspirations are the major factors pushing the demand of luxury housing. since 2000, wealth in india has grown 9.2% per annum, faster than the global average of 6%. developers are coming up with the various formats of technology-enabled homes, apartments, penthouses, villas, bungalows, ultra luxury houses etc.
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The Climate Solution: India’s Climate Crisis and What We Can Do About It by Mridula Ramesh Paperback 352 pages, Rs 399Hachette India Mridula Ramesh is Executive Director of Sundaram Textiles, which is part of the multi-billion-rupee TVS Group. It is perhaps her background that accounts for her firm belief in the power of private enterprise to foment change in society. It seems her conviction also makes her the rarest of rare angel investors – she invests in cleantech startups, or those startups that innovate in the clean technology sector. Clean technologies are those which “reduce negative environmental impacts through significant energy efficiency improvements, the sustainable use of resources, or environmental protection activities”, according to Wikipedia. The background to this is that India is among the countries most vulnerable to climate change, according to the World Bank. In this scenario, Mridula Ramesh’s angel investments are market-based interventions to tackle the problem. Ramesh’s debut book, The Climate Solution, is partly a primer on the causes of climate change. Partly it is a manual on how to build resilience to climate change; as one might expect, the writer expects private enterprise to assume the bulk of this responsibility. The book is well worth the time of the general audience, as well as policymakers, entrepreneurs, government officials and politicians. A breezy tour of climate science The book has two parts: ‘Understanding’ why we must care about climate change, and ‘Action’, which mentions the various ways in which the writer wants us to build resilience to climate emergencies. In the first part called ‘Understanding’, we get a breezy tour of climate science, its origins, its history, its first moment on the world stage, all in a beginner-friendly manner. We are told how, in 1896 (!), Swedish scientist Svante Arrhenius predicted that climate change would take place and even welcomed it for causing more equable climates. Fast-forwarding to the Fifties, we are told of American scientist Charles David Keeling’s important discovery that carbon dioxide was steadily increasing in our atmosphere. Further on, the book documents how, from 1988 onwards, the worldwide coalition against global warming was forged, as well as lobbying efforts to defang measures that could potentially combat global warming but also hamper the bottomlines of the energy industries. Adequate attention is given to the Intergovernmental Panel on Climate Change, its role in fomenting a global coalition to tackle climate change, and the attempts to cripple the coalition by most major polluters. Using clear and simple language, the writer says that human activity has all but exhausted the possibility to keep global average temperature from increasing by 1.5 degrees. Now the best bet may be to keep the global average temperature from breaching the two-degree mark – for which “wholesale changes to our way of life” are needed. This, too, may be a difficult thing to ask. Given that many countries that are leading polluters do not support climate initiatives, it looks as if prevention measures alone will not do the job of limiting temperature increase. Moreover, even if all countries cut emissions drastically, some portion of the carbon dioxide emitted today will linger in the atmosphere and will continue to cause global warming. Moving on, the book tells of how unequal the consequences of climate change will be for us, depending on whether we live in a developed or developing country, and depending on whether we are well-to-do or whether we are poor. We are informed of the four major regions that contribute the most to climate change – China, the USA, the European Union and India. We are told of the major activities that cause global warming, including electricity generation, manufacturing, agriculture and transport as currently practised. It would be useful to say here that the book is a list of impending climate-related catastrophes, some of which can be averted and some perhaps cannot. The disappearance of groundwater sources because of overuse, the rampant problem of untreated sewage, and water scarcity are covered in harrowing detail. The scary prospect of wars over water in the Indian subcontinent and in the Sino-Indian region is also dealt with. China’s propensity to dam the Brahmaputra will cause untold havoc in India and Bangladesh, as will the fate of rivers that flow through India as well as Pakistan. The interplay of climate change with social and cultural issues comes to the fore as the writer discusses the effect of climate change on India’s women and girl children. Indian society, which already makes women “vulnerable,” in the writer’s words, with rampant female foeticide, lack of education and nourishment for the girl child, and stunted social status and work opportunities for the women, is especially poorly equipped to deal with the effect of climate change on women. Climate change will reduce the work available to Indian women by crippling agriculture, which is where most Indian women work. Falling agricultural income will lead to increased demand for dowry and therefore more dowry deaths. Rising temperatures will contribute to domestic violence as well. This concludes the first half of the book, which paints several harrowing scenarios that make us sit up and clench our teeth. The remaining half of the book details proposed measures to boost resilience to the impacts of climate change. The major contributors to climate change – transport, agriculture, power generation are covered. Various measures are described, among them making water a central government portfolio instead of a state-by-state subject, reducing water wastage and selling water to citizens at varying prices. Here the writer advocates that agro-industry players reach out to farmers and to incentivise and educate them to raise their yields. Here the writer also pushes the case for genetically modified (GM) seeds, saying that GM seeds with their high yields will mitigate the effects of reduced agricultural productivity caused by climate change. Precision agriculture She further advises us against considering all pesticide use bad, and all chemical fertiliser use as harmful. She makes the case for what is called ‘precision agriculture’ – applying science to farming in order to boost farming yield while reducing environmental impact. As transportation accounts for a large chunk of greenhouse gas emissions, the writer extolls the virtues of public transport, going thoroughly and lucidly into the characteristics of a good mass transit system. She also points out why buses are better than metro railways, and also why politicians prefer metros to buses. She chronicles various measures to reduce wastage, offering her own example as inspiration. She tells us how her household became ‘zero-waste’, that is, producing no waste for the landfill. She also recommends that households be made to pay for their wastage to be treated in an eco-friendly manner. Electricity generation through coal-fired plants is covered, of course; it is good that the writer also focuses on how we use electricity and offers plans to reduce and rationalise our use of electricity. It is good to see that the writer focuses on the neglected aspect of urban water use, that is, sewage treatment and recycling of sewage water, which is one of the many hopeful parts of the book. Rainwater harvesting is given due emphasis, as is reducing water waste. Here, too, the writer offers us her own example with a thorough case study of her factory, in which water use was reduced from 2.5 to 3.5 million litres of water a month to 1.2 million litres a month, using a combination of sewage treatment, good plumbing, and water harvesting. Speaking of food production as a cause of climate change, the writer echoes Michael Pollan’s advice to eat ‘mostly plants’ because considerable emissions are generated through livestock rearing, deforestation is caused, and water is used. The writer says that 112 litres of water are used in producing one gram of bovine meat, 34 litres in producing one gram of chicken, and only 19 litres for producing one gram of pulses. The writer documents several case studies from the nation that is among the world leaders in managing water resources and boosting agricultural productivity, that is, Israel. This country has a single, central regulatory authority for water supply, relies hugely on recycled water, and has several technological innovations to cut water wastage as well as to boost agricultural productivity. The writer would rather that India go the Israel way. She devotes a number of pages to analyzing why India lags behind in innovation – shortcomings in India’s education system. These make for interesting if also harrowing reading. The writer says: “Given the amount of dangerous warming ‘baked into the system’ and the peculiar vulnerability of India to that warming, would it, therefore, be more prudent to shift the focus of the narrative to building resilience – in our farms, our cities and our lives?” Here the writer does not advocate abandoning measures to mitigate climate change, such as reduction in greenhouse gas emissions. She says that these measures won’t be enough by themselves. Resilience needs to be built into human society if it is to stand up to the challenge of climate change. Controversial solutions Surely the writer’s logic and her focus on mitigation measures cannot be faulted. But it is her solutions that are controversial. The writer believes in the ability of what she calls “competitive forces” to save the planet. By “competitive forces” she means companies, that is, capitalistic forces. The writer acknowledges that capitalist organisations are responsible in a major way for global warming; she also believes that “the breathtaking power and speed of unleashed competitive forces” can help build resilience to climate change. The problem, of course, is that we don’t know this for certain. Improving the yields of Indian farms and reducing their usage of water are two things that she thinks will build climate change resilience. To this end, she advocates opening India’s “agricultural and waste markets” to competitive forces in what she believes is a liberalisation-style moment. Here the writer is advocating radical agricultural reform. She says the small Indian farmer is squeezed by various people, usually unscrupulous moneylenders, many of whom are also the buyers of agricultural produce and suppliers of seeds. Their actions manipulate the farmer into financial distress. The solution to this according to the writer is empowering the farmers through the marketplace. The writer’s idea of a good marketplace is Amazon.com, and she advocates having a similar setup using which farmers can buy seeds and farming inputs and sell their produce. She presumably wants a company or companies to set up and run this portal. She suggests this radical change because, in this book, “[o]f all the sectors to be hit hard by the warming climate, agriculture is perhaps the worst”. Is it reasonable to say that a system that in most part created the climate change problem can also solve it? Maybe, if it were radically reformed. The writer clearly wants private enterprise in Indian agriculture – she wants startups to revolutionise Indian agriculture. She says, “… there is perhaps room for placing some weight on market-driven technological solutions”… some room, some weight. Yet the book places emphasis mostly on solutions driven by the market, without telling us much about the other solutions, the non-market ones, that can also help in building resilience to climate change. Were these also mentioned in adequate detail, the book, which is comprehensive, would have become complete. There simply aren’t enough books talking about the effects of climate change on India, so we lack multiple opinions on the subject. We need these and fast. This book is highly recommended not only for its own merits, which include thorough research and accessible writing, but because it will also get a conversation started on its urgent topic. It’s a conversation that we desperately need right now. Conversation precedes action. Suhit Kelkar is a freelance Journalist. He is the author of the poetry chapbook named The Centaur Chronicles. Summarise this report in a few sentences.
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the climate solution: India’s climate crisis and what we can do about it by Mridula Ramesh is published by hudson. the book is partly a primer on the causes of climate change. it is also a manual on how to build resilience to climate change. the author expects private enterprise to assume the bulk of this responsibility.
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File image Finance Minister Nirmala Sitharaman, at the India-Sweden Business Summit on December 3, said that the government is open to further reforms aimed at making India a more attractive destination for investors. She cited the recent corporate tax rate cut while talking about the various steps that the Indian government has taken in the recent times in this direction. "I only can invite and assure that the Government of India is committed for further reforms in various sectors whether it is banking, mining or insurance and so on," she said. She invited Swedish firms to invest in infrastructure development projects in India. FM Sitharaman, without sharing details of future reforms, added that the government is addressing challenges faced by the industry. "Since after budget I have made sure constant interactions with the industry, understanding their challenges, and therefore, since after the budget not waiting for another budget which is expected in February 2020, we took major structure reform in the form reduction in corporate tax. "This one measure indicates how our government believes in reforms. Today I say there are many more steps we have to take," she said. In September this year, the government slashed corporate tax rates by up to 10 percentage points. The move was the biggest such tax reduction in the past 28 years. The Rs 1.45 lakh crore-tax break was aimed at pulling the economy out of a six-year low growth. Base corporate tax for existing companies has been reduced to 22 percent from the earlier 30 percent. For new manufacturing firms incorporated after October 1, 2019, and starting operations before March 31, 2023, tax rate was slashed by 10 percent, bringing it down to 15 percent. The government has formed a task force which will come out with a list 10 major infrastructure projects by December 15, the finance minister said. The finance ministry in September set up a task force headed by Economic Affairs Secretary to prepare a road map for the "national infrastructure pipeline" from 2019-20 to 2024-25 under a Rs 100 lakh crore infra plan. The task force is expected to cover greenfield and brownfield projects costing above Rs 100 crore each. She emphasised that India has great prospects not that it just has large market but also a large aspirational middle class that has great purchasing power in hands. "From the point of view being a democracy, a rule-based country, there is a clear rule of law principle which governs this country in a very transparent way and therefore if global investors are looking for an environment which is familiar to them is far more acceptable to them, India stands out," she said. (With inputs from PTI) Summarise this report in a few sentences.
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finance minister says government is open to further reforms. she invites Swedish firms to invest in infrastructure development projects. government formed task force to prepare road map for infrastructure pipeline. slashed corporate tax rates by up to 10 percentage points in September. slashed corporate tax rate for existing companies to 22 percent. slashed corporate tax rate for new manufacturing firms to 15 percent.
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NEW DELHI: The series-IX of the sovereign gold bond (SGB) scheme 2020-21 opened for subscription on Monday. The issue comes at a time when gold prices are trading near Rs 50,000 per 10 gram, off record highs.Prospective bidders, who intend to subscribe to the scheme, can bid for a minimum of 1 gm of gold at Rs 5,000 per gram. There will be a Rs 50 discount for investors bidding online. The issue closes on Friday, January 1. Bond certificates will be issued on January 5.SGB are a good investment option for those who are willing to invest in gold, but not in a physical form. The equity market is at its all-time high and gold could work as a hedging instrument and provide stability to the overall portfolio during market volatility. It also helps investors to mitigate the impact of inflation and economic uncertainties. We are expecting the international gold prices to remain firm due to rising economic uncertainties on account of second wave of Covid in Europe and weak USD; therefore, recommending to subscribe SGB scheme," Ventura Securities said in a report."Investors should buy only that much gold via SGB, which does not disturb their ideal portfolio allocation. We believe that a 10-15 per cent allocation in Gold is considered good for the overall portfolio," it added.In case you wish to subscribe, you can do so via your bank. Besides, these bonds are also sold through Stock Holding Corporation of India Limited (SHCIL), designated post offices, National Stock Exchange of India and Bombay Stock Exchange, either directly or through agents.“Investing in this gold bond would earn full amount at time of maturity which is a big positive. Investors looking to invest for long term i.e. 5-8 years till the maturity with motive of earning decent return can invest in sovereign gold bond,” said Ajit Mishra, VP Research, Religare Broking.Investors would earn an interest of 2.50 per cent per annum on the amount of initial investment, which will take effect from the date of its issue and will be payable every six months. Besides, they can also see capital gains at the time of redemption, in case the price at the time of redemption is higher, said ICICI Bank.SGBs are government securities denominated in grams of gold as substitutes for holding physical gold. Investors have to pay the issue price in cash and the bonds will be redeemed in cash on maturity. The bonds are issued by RBI on behalf of the government.The tenor of the bond will be for a period of eight years with exit options in the 5th, 6th and 7th year, to be exercised on the interest payment dates. Besides, bonds are also tradable on stock exchanges within a fortnight of the issuance.Among the benefits of subscribing to SGB is attractive interest with asset appreciation opportunity, redemption being linked to gold price, elimination of risk and cost of storage, exemption from capital gains tax if held till maturity and a hassle free holding as it eliminates the storage cost of physical gold, said HDFC Securities. Summarise this report in a few sentences.
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series-IX of sovereign gold bond scheme 2020-21 opens for subscription. issue comes at a time when gold prices are trading near Rs 50,000 per 10 gram. investors can bid for a minimum of 1 gm of gold at Rs 5,000 per gram. bond certificates will be issued on January 5. a Rs 50 discount for investors bidding online.
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State governments seem to have collected the lowest-ever inflation-adjusted monthly tax revenue in April. Officials from over half a dozen states told FE that their states’ own tax revenues (OTR) in the lockdown month were less than a fourth of the usual (estimated) level, with some putting the figure at even 10%. While this has indeed undermined their ability to sustain the Covid-19-related additional expenditure, the Centre’s decision to release the states’ share of divisible tax pool without any reduction from the budgeted level has come as a solace to them. Of course, a clutch of them has resorted to front-loading of market borrowings and some with relatively worse balance sheets have borrowed at exorbitant costs. The Centre has already transferred `46,038 crore to the states as their share of central taxes in April. The states’ OTR could take a further hit in May, as the S-GST collections could be even worse than that in April. This is because April GST collections pertain largely to March, which saw the imposition of lockdown in the last week, whereas the May mop-up is primarily from transactions done in April, which witnessed lockdown throughout. Though the states’ dependence on OTR and transfers from the Centre vary widely among states, in the aggregate, OTR constitutes 62% of states’ tax revenue and the balance 38% come from share in central taxes. With no/minimal activity since lockdown began on March 24, OTRs have dried up. State GST is roughly 43.5% of OTR (around 30% of total tax revenue), while other major OTR components are sales tax/VAT on petroleum, state excise on alcohol and proceeds from stamp duty registration fees. “There is a collapse of state finances. With the battle against Covid-19 going on, the Centre should opt for additional borrowings or borrow from the Reserve Bank of India (to monetise its fiscal deficit) and make money available to the states,” Kerala finance minister TM Thomas Isaac told FE. The state has collected only about `200 crore or a measly 6% of the target of `3,500 crore its monthly OTR target in April. Against S-GST of `1,766 crore collected in April 2019, the collection during April 2020 was just `161 crore, he later wrote in a Facebook blog. Weak revenues forced the state to use up 91% of its Q1FY21 market borrowing quota of `6,500 crore in the first instance of state development loan (SDL) auction on April 7. Bihar deputy chief minister Sushil Kumar Modi said that with a limited scope to mobilise revenues, the state’s fiscal deficit could touch 4% of GSDP in FY21 against the 3% target. He said Bihar’s OTR, including S-GST in April, would be about 20% of the collections a year ago. “It is hard to see how we can raise taxes once the pandemic is over as businesses would need more support and higher taxation would defeat the purpose of revival,” Modi said. Several state chief ministers, including Chattisgarh’s Bhupesh Baghel, have demanded that the FRBM-mandated fiscal deficit ceiling be raised from 3% of GSDP to 5% for FY21 to enable them to borrow more funds. As per state budgets, their combined fiscal deficit stood at 2.4% of GSDP in FY19, the target (BE) for FY20 was 2.6% (actuals to be higher) and FY21 may turn out to be one of the worst in this regard. Uttar Pradesh, the most populous state of the country, could collect only 15% of the `13,591 crore estimated in April. “We are trying to devise some strategy to prioritise spending,” a senior Uttar Pradesh government official said, on condition of anonymity. Odisha, a revenue-surplus state thanks to rich mineral resources, could garner only around `1,100 crore revenue (around 20% of the target for the month) in April, while its monthly fixed cost towards salaries, pension and interest is `3,000 crore. The Centre’s tax devolution of `2,100 crore for April helped the state. “After reviewing finances for Q1, we may approach the Centre for some relief, including relaxations in fiscal deficit limit,” Odisha finance secretary Ashok Meena said. Himachal Pradesh netted only `40 crore revenue in April compared to `450 crore a year ago. Central tax devolution and revenue deficit grant enabled it to stay afloat. “We are now doing simulations on how to manage state finances if we don’t get budgeted revenues,” Himachal finance secretary Prabodh Saxena said. While the Centre’s decision to adhere to the tax devolution as per Budget FY21 plan till January 2021 would come to the states’ aid, they are also acutely aware that the Centre will do adjustments of extra transfers in February-March. For now, normal tax devolutions and the 60% hike in states’ ways and means advances (WMA) by the Reserve Bank of India have allowed at least some states to refrain from excessive front-loading of borrowings or resorting to other forms of costly fundraising. Notwithstanding a massive tax revenue shortfall it is faced with, the Centre is learnt to have decided to stick to the practice of keeping the mandatory transfers to the states from the divisible pool at the same rate as budgeted for FY21, till the 10th instalment due in January. Summarise this report in a few sentences.
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state governments have collected the lowest-ever inflation-adjusted monthly tax revenue in April. some states put the figure at even 10%. the state has collected only about 200 crore or a measly 6% of the target of 3,500 crore its monthly OTR target in April. the state has resorted to front-loading of market borrowings.
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Chennai: It has been a landmark year for Indian Hotels Co. Ltd (IHCL), which runs the Taj group of hotels. In June, the company won a 33-year lease for The Connaught , which will be opened for renovation next year under the SeleQtions brand. In September, after years of legal battle, Indian Hotels retained its lease on the iconic Taj Mahal Hotel on Delhi’s Mansingh Road. On Saturday, it re-launched Taj Connemara, south India’s oldest hotel dating back to 1854, after a 22-month-long renovation project that cost ₹ 90 crore. That’s not all. In December, the company plans to re-launch Ginger, the budget hotel unit of the group, as a “lean luxury brand" with a renewed focus and at a higher price. “It is always like that. It is something this week and will be something else the week after. You are either an agile company or you will be dead," Puneet Chhatwal, 54, who took charge as chief executive officer and managing director (CEO and MD) of Indian Hotels in November, told journalists in Chennai on Saturday, before the launch of Taj Connemara. Chhatwal isn’t worried about oversupply, especially in key metros. “All the top five cities can have 20+ and top 10 cities can have 10+ hotels in the next five-seven years. Delhi-NCR already has 15 IHCL hotels, the highest across the country," said Chhatwal. Chennai has seven IHCL hotels now and will have its eighth Taj group hotel by July. The markets tend to grow, said Chhatwal. He could be right. Demand for hotel rooms in Delhi grew at 6.8%, outpacing supply which grew at 2.8%, according to a June analysis in Mint. “So tomorrow, if there is another opportunity to buy a hotel in Lutyens Delhi, we will go for it. We have the highest number of rooms in central Delhi and we want to continue that growth because Delhi, as the capital of the country, will continue to grow," he said. ALSO READ | Why is Indian Hotels bidding aggressively for New Delhi hotels? The company wants to strike the correct balance between iconic and profitable properties. So, while the group emphasises brands such as Ginger and Vivanta, where there is a potential to grow, it is also focussing singular iconic properties like The Connaught, bringing them under the SeleQtions brand, and renovating heritage properties like Taj Connemara. “The Taj Group has assumed a multi-pronged approach to their expansion, and refurbishment of existing assets is certainly one of these prongs," said Shobhit Agarwal, MD and CEO, ANAROCK Capital. “There are various benefits to focusing on refurbishment of existing assets. In the first place, there is much lower turnaround time when it comes to on-ground deployment and also lower expenses. The locations they are looking at are very strategic and have excellent brand recall in their own right," said Agarwal. With an increase in both domestic and international business travelers in India, it makes sense that “the group is not letting the grass grow under their feet in the highly competitive hospitality business space", said Agarwal. The biggest challenge in juggling heritage, luxury and modernity is money, according to Chhatwal. “It is easy to spend another ₹ 100 crore on renovation of a property like the Connemara. But at some point you have to look at your return on investment," he said. It is for that reason that he wants the IHCL portfolio to become a 50-50 mix of owned or leased and managed hotels from the current mix of 65% and 35%, respectively. Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Summarise this report in a few sentences.
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the company won a 33-year lease for the connaught hotel in june. it re-launched the south india's oldest hotel on saturday. the company plans to re-launch ginger, the budget hotel unit of the group. in december, the company plans to re-launch ginger as a "lean luxury brand"
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New Delhi: India’s trade deficit narrowed to a five-month low at $13.98 billion in September despite higher oil prices, even as merchandise exports entered negative territory after a gap of six months. Data released by the commerce ministry on Monday showed that exports contracted 2.15% in September while imports grew 10.45% in dollar terms. In rupee terms, however, exports and imports expanded at 9.65% and 23.78%, respectively, mostly because of a sharp depreciation in the rupee. Commerce secretary Anup Wadhawan said the dip in merchandise exports in dollar terms is due to a higher base in September last year when exports grew at an “abnormally high" 26% due to imminent cuts in pre-goods and service tax (GST) duty drawback rates. “This is a temporary phenomenon. Exporters continue to be resurgent with their realised incomes having gone up by almost 10%. October figures promise to be as per the ongoing six-month trend in dollar terms," he said. In the first half (April-September) of the fiscal year, exports and imports grew at 12.54% and 16.16% respectively in dollar terms. Non-petroleum and non-gems and jewellery exports growth in April-September period was 10.32%. “Thus, the exports growth is robust and not confined to petroleum products alone," Wadhawan said. The decline in the merchandise trade deficit is because of seasonal factors and is, therefore, likely to offer only temporary relief, said Aditi Nayar, principal economist at Icra Ltd. “The sharper depreciation of the rupee relative to some emerging market peers is likely to positively impact exports in certain sectors, including apparel, in H2 FY2019. Despite this, as well as the measures unveiled so far by the government to curtail non-essential imports, we will not be surprised if the merchandise trade deficit rebounds above $17.5 billion in October," she said. Commerce secretary Anup Wadhawan said the decline in merchandise exports is due to a higher base - The government last month raised import duties on 19 non-essential items, including refrigerators, air conditioners, jewellery, diamonds and jet fuel, accounting for annual imports worth ₹ 86,000 crore, to arrest a widening current account deficit (CAD) and a weakening rupee. Last week, it increased customs duty on a host of items, including telecommunication equipment, from the existing 10% to 20%. Wadhawan defended the measure, saying India has raised custom duties well within its permissible bound rates at the World Trade Organization and, hence, cannot be termed protectionist unlike some developed countries. India’s CAD worsened to 2.4% of gross domestic product (GDP) in the first quarter of 2018-19 and economists expect it to worsen to 3% for the full year. With large-scale capital outflows, financing the deficit is also a challenge, though India’s forex reserves are more than adequate. Icra estimates India’s CAD to triple to a substantial $19-21 billion in July-September quarter of 2018-19, or around 3% of GDP, from the modest $7 billion during the same period a year ago. WTO has downgraded growth in global merchandise trade to 3.9% in 2018 from the earlier estimate of 4.4% because of the escalating trade tensions between the US and China. Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Summarise this report in a few sentences.
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exports contracted 2.15% in September while imports grew 10.45% in dollar terms. rupee depreciation pushed up exports and imports at 9.65% and 23.78%. decline in merchandise exports due to higher base in September last year. government last month raised import duties on 19 non-essential items. 'we will not be surprised if the merchandise trade deficit rebounds above $17.5 billion in October,' says economist.
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India’s real estate sector, which has been facing multiple headwinds in the past few years, got further mauled by the Covid-29 pandemic with industry sentiments hitting a historic low during the January-March 2020 quarter mirroring domestic and global economic concerns, a survey report said. The Knight Frank-Ficci-Naredco real estate sentiment index Q1 2020 survey shows that current sentiments of real estate stakeholders have nosedived to an all-time low of 31. “The survey further indicates that future sentiment score outlining the industries’ market expectations has also dipped well into the pessimistic zone at a score of 36 in Q1 2020 against the score of 59 in Q4 2019 calendar year (CY),” the report said. For comparison sake, a score of more than 50 signifies ‘optimism’ in sentiments, while 50 means the sentiment is ‘same’ or ‘neutral’, and a score below 50 signifies ‘pessimism’. The real estate industry that had just about started showing some signs of revival during the last quarter of 2019 suffered a severe setback due to the ongoing novel corona virus (Covid-19) epidemic, it added. The score had revived in Q4 2019 CY after being in pessimistic zone (below 50 mark) for two back-to-back quarters, but was short-lived, as the current sentiment score fell to 31 in January-March 2020. The stakeholder’s mood with regards to overall economy and real estate had been in pessimistic zone in Q2 and Q3 2019 due to the credit squeeze and economic slowdown. But, a slew of measures announced by the government to revive realty saw Q4 2019 infusing confidence in the market. The creation of a stressed asset fund (AIF) of Rs 25,000 crore to provide last mile funding to stalled affordable housing projects was a welcome step in this direction. However, the outbreak has marred sentiments again. Knight Frank India chairman & MD Shishir Baijal said the pandemic has created an unprecedented condition, which is impacting global markets and societies. There is already a severe shortage of liquidity due to the complete standstill that most economies have come to. Even while the government and Reserve Bank of India (RBI) have provided some stimulus, further support may be required to help real estate and for the economy to stay afloat during the crisis. Managing liquidity and sustaining through the length of this pandemic will be critical for economic survival in the post-pandemic era, he added. “Real estate segment specifically will have a longer journey to make. This crisis has retracted the end-user confidence to its lowest levels ever, which will push any kind of real estate purchase decisions to the distant future. The already ailing real estate sector has been crippled with this pandemic, making it imperative for government support to bring it back on track,” Baijal pointed out. Summarise this report in a few sentences.
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real estate sentiment index Q1 2020 survey shows sentiments have nosedived to an all-time low of 31. future sentiment score outlining industries' market expectations has also dipped well into the pessimistic zone. real estate industry that had just about started showing signs of revival during the last quarter of 2019 suffered a severe setback due to the ongoing novel corona virus (Covid-19) epidemic.
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Ritesh Jain Ritesh Jain is Director and Strategic Advisor, Eastern Financiers and Economic Advisor, Old Bridge Capital. The Calgary, Canada-based Jain is also a global macro investor and Top 3 Global LinkedIn Influencers on Economy and Finance, Mumbai He is a trend watcher, Global Macro investor and Blogger at worldoutofwhack.com. He has over 20 year...Show more » (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com .) ... more less Summarise this report in a few sentences.
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Ritesh Jain is a trend watcher, global macro investor and blogger. he has over 20 years of experience in the financial services industry. he has a wealth of experience in the financial services industry. he is also a top 3 global LinkedIn influencers on economy and finance. he is a trend watcher, global macro investor and blogger at worldoutofwhack.com.
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Gold prices held steady on Tuesday near last session's 2-1/2-month high as risk-averse investors sought refuge in the metal amid rising political tensions and economic uncertainty. Spot gold was little-changed at $1,226.11 an ounce at 0353 GMT. Gold touched $1,233.26 on Monday, its highest since July 26, as global stocks slid on rising tensions between Western powers and Saudi Arabia and concerns over the pace of global economic growth. Asian stocks rose modestly on Tuesday, gaining a firmer footing after a week of heavy losses. U.S. gold futures were flat at $1,229.90 an ounce. "While the sell-off in stocks rekindled some demand, there were other key factors in play. With escalating trade tensions, concerns over slowing global growth, geopolitical tensions and U.S. mid-term election jitters in the mix, gold has a chance to shine," said Lukman Otunuga, Research Analyst for FXTM. "While the risk-off trading environment is poised to send gold higher in the near term, the medium- to longer-term outlook remains dictated by the dollar and U.S. rate hike expectations." The stock market is not stabilised yet and gold prices are expected to go up, said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank. "If it (gold) breaks the $1,230 level, which has been a resistance for a long time, with short positions being still quite large, there is a good possibility of buyback of short positions which could push prices to $1,250." Spot gold may fall into a range of $1,208-$1,217 per ounce, as it faces a strong resistance at $1,235, according to Reuters technical analyst Wang Tao. Gold, usually seen as a safe store of value during political and economic uncertainty, remains down nearly 10 percent from its April peak after investors preferred the dollar as the U.S.-China trade war unfolded against a background of higher U.S. interest rates. "The soft U.S. inflation figures in September have prompted investors to reevaluate the Federal Reserve's hiking path beyond December. With Donald Trump's recent criticism of the Fed adding to the factors that have weakened the dollar, gold is likely to edge higher in the near term," Otunuga said. U.S. retail sales barely rose in September as a rebound in motor vehicle purchases was offset by the biggest drop in spending at restaurants and bars in nearly two years. Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.55 percent to 748.76 tonnes on Monday. In other metals, platinum was flat at $838.49 per ounce after touching its highest level since July 10 at $850.10 on Monday. Palladium was little-changed at $1,083.25 and silver gained about 0.2 percent at $14.67. Summarise this report in a few sentences.
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gold prices hold steady at $1,226.11 an ounce at 0353 GMT. global stocks slid on rising tensions between western powers and Saudi Arabia. gold may fall into a range of $1,208-$1,217 per ounce. gold is usually seen as a safe store of value during political and economic uncertainty. a u.s. gold futures contract is flat at $1,229.90 an ounce.
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Three days after the food services industry body National Restaurants Association of India (NRAI) advised it members to shut down their restaurants' operations for 14 days till March 31, nearly all the big chains, except Domino's Pizza and McDonalds, have shut down operations. The decision was announced as restaurant body feared that it might put the lives of employees at risk. "As such, those outlets that continue to operate have seen over 70 per cent drop in footfalls," says Anurag Katriar, President of NRAI and Executive Director & CEO of deGustibus Hospitality, which owns Indigo Deli, Tote and Dakshin Ras. "All of my restaurants are closed. It's an existential crisis for us," he says. The food services sector is pegged at about Rs 4.5 lakh crore, out of which organised segment is around Rs 1.75 lakh crore. With the low demand and shutdown of operations, NRAI is expecting losses of Rs 70,000-80,000 crore in 2020. "Our futures depend on the how long this crisis lasts. If it continues for over two months, there will be massive losses, permanent closures, wide-scale job cuts, and huge hit on the economy," says a leading restaurant chain promoter. NRAI is also predicting job losses of 20 per cent in the sector (for the time being) which employs about 7.3 million people. "The impact of the COVID-19 on our sector is still unfolding and therefore we are not in a position to estimate the eventual loss of jobs because of this," NRAI responded to a Business Today query. In India, the food services sector is largely divided into three segments: bulk dining, in-restaurant dining, and value dining (that includes quick-service restaurants and cloud kitchen). As a large part of the population has decided to stay at home and avoid social gathering, the first two segments -- that is bulk and in-restaurant dining segments -- have been badly hit. The QSRs and cloud kitchen, which take food orders online, are the least affected of the lot. As per a source, online food delivery service Swiggy has seen around 25-30 per cent decline in business. "Even though their orders are down in large cities, in tier-II towns, the drop is not that big since there's a lot less panic. Swiggy and Zomato have said that they will be operational on Sunday (the day designated by PM Narendra Modi for Janta Curfew), but where will they pick up orders from if the restaurants are going to be closed. The only option they would have is their own cloud kitchens," says an industry insider. As per sources, the government authorities have reportedly asked Swiggy to shut down its cloud kitchen in Chembur (Mumbai). Business Today has emailed to Zomato and Swiggy for their responses on the continuity of business under Sunday's curfew, and the reports of shutting down of a kitchen. The story will be updated in due course. A restaurateur says that whenever the situation begins to normalise, food and beverages (F&B) sector, particularly dine-in outlets, would be the last one to pick up since eating out is discretionary spending. "Nearly 70 per cent of our costs are fixed that cannot be brought down even as revenues continue to slide. The sector has never witnessed anything like this before. We are hoping for the government to give some relief to the sector," he says. Also Read: COVID-19: Grofers, BigBasket cap grocery purchases, shun discounts amid anxiety buying Also Read: Coronavirus impact: CII demands Rs 2 lakh cr stimulus; DBT to poor, elderly Also Read: Coronavirus outbreak: FM says economic package to be announced 'as soon as possible' Summarise this report in a few sentences.
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NRAI is predicting losses of Rs 70,000-80,000 crore in 2020. the food services sector employs about 7.3 million people. online food delivery service Swiggy has seen around 25-30 per cent decline in business. NRAI is also predicting job losses of 20 per cent in the sector. a recent poll showed that a quarter of the population is a'very concerned' about the future.
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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. Summarise this report in a few sentences.
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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.
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Data is well and truly the new oil when it comes to Mukesh Ambani’s Reliance Industries Ltd (RIL), as the company gears up to rebrand itself as a software company engaged in ‘developing an ecosystem of new digital technology platforms’. In a company presentation ahead of its massive Rs 53,125 crore rights issue that will open on May 20, RIL said that it is a ‘Made in India’, ‘Made for India’, and ‘Made by Indians’ company that is the best proxy for India’s consumption-driven and tech-propelled growth story. RIL is no longer calling itself an oil and gas conglomerate but is instead posing as a software company. RIL in the presentation highlighted the three mega-growth engines that it has built in a single decade. This included Reliance Jio, Reliance Retail, and Reliance oil-to-chemical. “RIL’s growth in the digital technology business, based on asset-light platforms of the future, will be nonlinear and exponential,” the presentation said as Mukesh Ambani pushed to fashion Jio as the go-to digital platform to aid India’s growth. The company said that rural India’s internet usage is increasing rapidly as it highlighted its vision to take education, health, and agri-knowledge to the doorsteps of rural India riding on the Jio platform. Not just rural India, Jio has also been termed as the best placed to equip MSME players in India with cutting edge technology in the presentation. EBITDA for RIL has grown from $5.6 billion in the financial year 2010 to $13.6 billion in financial year 2020 as consumer business increased to 35% of the total business. RIL, now omnipresent in the Indian consumer ecosystem now plays a part in everything from digital platforms to the grocery to fashion and lifestyle. “As the Indian economy aims to grow to US$5 trillion, consumer segments will contribute a large part of the growth Digital platforms and ecosystems being created by Jio will be primary drivers of this growth,” RIL said. Reliance has recently pocketed over Rs 67,000 crore from four global investors, selling a stake in its subsidiary Jio Platforms. The biggest of these investments has been from Mark Zuckerberg’s Facebook, buying a 10% stake for Rs 43,000 crore. The latest addition to the list of investors is General Atlantic, buying a stake for Rs 6,598 crore. The move to sell a stake in Jio is being looked at by experts as a move by Mukesh Ambani to cut the net-debt of his company by the end of this fiscal year, however, the roping in of technology giant Facebook will also help India’s most valuable company revamp the retail space using its Jio Mart platform. All three ‘mega-growth’ engines of Reliance have an exciting outlook according to the company. Jio remains best placed to capitalize on the home broadband market through JioFiber, according to RIL, it is also the only firm having the critical infrastructure for launching 5G in India. Summarise this report in a few sentences.
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company rebrands itself as a software company engaged in 'developing an ecosystem of new digital technology platforms' in a presentation ahead of its massive Rs 53,125 crore rights issue. RIL is no longer calling itself an oil and gas conglomerate but is instead posing as a software company. highlights three mega-growth engines that it has built in a single decade. this included Reliance Jio, Reliance Retail, and Reliance oil-to-chemical.
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live bse live nse live Volume Todays L/H More × Britannia, on Monday, reported a net profit of Rs 303 crore for the September quarter. This is a jump of 16 percent compared to the profit reported during the same quarter of last year. The company reported revenue of Rs 2,869.59 crore during the quarter against Rs 2,545.29 crore posted last year. This is a rise of 13 percent year on year. At an operating level, the earnings before interest, taxes, depreciation and amortization (EBITDA) rose to Rs 454.4 crore in Q2, a jump of 20 percent from Rs 377.6 crore reported last year. Meanwhile, the operating margin was reported at 15.8 percent, up from 14.8 percent last year, a rise of 100 basis points. Commenting on the results, Varun Berry, its managing director said, “This was the fourth successive quarter of double-digit volume growth primarily due to our investment in brands, multi-media campaign to bring alive the new identity and celebrating 100 years and widening our distribution network through focus on direct reach, rural market and weak states. In the base business we continued our premiumisation and innovation journey with the launch of “Pure Magic Chocolush,”, “Good Cashew Almond” and “Tiger Choco Cookies” and renovation of 50-50 & Bourbon." Berry also said, "In line with our goal to become a “Global Total Foods Company” we launched two new categories “Cream Wafers” and “Flavoured Milk Shakes” in Tetra Packs," he added. Further, the packaged food major's international business grew by a healthy double-digit despite slow-down in key geographies of Middle East and Africa. Project work at the Greenfield unit in Nepal is progressing and is expected to be commissioned in the fourth quarter of the current year. On the commodity front, Britannia witnessed marginal inflation in the prices of key raw materials. "Our cost efficiency program and endeavour to leverage fixed costs have helped us improve our profitability”. We have progressed well in our journey of building technologically superior factories and the 1st Biscuit line at the Integrated Food Park in Ranjangaon has been commercialized," Berry said in an exchange filing. The stock gained 5 percent in the past one month, while in the past three days, it rose over a percent. At 15:18 hrs Britannia Industries was quoting at Rs 5,772.10, up Rs 18.25, or 0.32 percent, on the BSE. It touched an intraday high of Rs 5,844.70 and an intraday low of Rs 5,599.25. Summarise this report in a few sentences.
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Britannia reports net profit of Rs 303 crore for the September quarter. revenue of Rs 2,869.59 crore against Rs 2,545.29 crore posted last year. operating margin reported at 15.8 percent, up from 14.8 percent last year. global business grew by a healthy double-digit despite slow-down in key geographies. a soaring rupee of 1.2 per cent helped boost the stock price.
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MANILA: India wants the Asian Development Bank (ADB) to increase lending to the world's fastest growing economy to help bridge funding requirement for infrastructure development.Economic Affairs Secretary Subhash Chandra Garg would meet ADB president Takehiko Nakao tomorrow where he would push for increasing the ADB's lending commitment to India.Also realignment of the ADB's lending priorities in line with 'Strategy 2030' of the multilateral lender would be discussed.India will support the ADB's plan to devote more resources for poverty alleviation and projects addressing climate change.ADB commits about USD 3 billion investment in a year, including that from its the private sector lending arm, for India."We wish to increase it. ADB has also been generally supportive about it ... The USD 3 billion is a commitment that ADB makes and disbursement takes place subsequently based on project implementation," said Garg who will attend the ADB board of governors meeting later in the week.Stating that the ADB focuses on transport and energy sector in India, Garg said the ADB is now planning to make a "little more direct focus on poverty reduction and climate change"."They (ADB) still continue to say that infrastructure is their main focus even going forward. We are, by and large, in line with what their strategic thinking is."We continue to feel ADB has lot of experience and advantage in financing infra development in the country. But going forward if they change somewhat more towards social sector, poverty reduction that realignment is fine," Garg told .India is a founding member of the ADB and is currently the fourth largest shareholder and the largest borrower of the ADB sovereign lending since 2010.Manila-based ADB has so far committed sovereign loans totalling USD 35.9 billion to India.The ADB board of governors from 67 member nations would meet here on May 5 for the bank's 51st annual meeting and deliberate on the theme- 'Linking People and Economies for Inclusive Development'. Summarise this report in a few sentences.
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India wants the Asian Development Bank (ADB) to increase lending to the world's fastest growing economy. the bank commits about USD 3 billion investment in a year to India. the bank is planning to make a "little more direct focus on poverty reduction and climate change" the bank has committed sovereign loans totalling USD 35.9 billion to india. the bank is the fourth largest shareholder and largest borrower of the ADB sovereign lending since 2010.
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New Delhi: As part of its efforts to streamline the operations of state-run banks, the finance ministry on Thursday released a road map for consolidation of the overseas operations of these lenders. The rationalization in foreign operations will be through a mixture of closure of overseas branches, subsidiaries, representative offices and remittance centres and through consolidation of joint ventures where more than one bank is a shareholder. State-run banks will consolidate 35 overseas operations without affecting their international presence, Rajiv Kumar, secretary, department of financial services, wrote on Twitter, adding 69 more operations have been identified for consolidation. The rationalization of overseas branches is aimed towards “cost efficiencies and synergies in overseas markets", he said. Further, all existing 216 operations of state-run banks in other countries will be examined to check for possible consolidation. Banks have been asked to close non-viable operations for cost efficiencies. Also, the finance ministry is pushing for consolidation of operations in the same market. Banks have also been asked to consolidate equity holdings in joint ventures where more than one state-run bank is a stakeholder. This comes at a time when the overseas operations of banks are under scanner following the Rs12,636 crore fraud at Punjab National Bank (PNB). The government is examining lapses in systems followed by overseas branches while giving loans to group firms of Nirav Modi and Mehul Choksi against letters of undertaking (LoUs) fraudulently issued by some PNB officials. Barring one bank, all the branches who lent to Modi against these LoUs were of state-run lenders. In a separate incident, Bank of Baroda was forced to shut operations in South Africa after its loans to firms owned by three brothers from Uttar Pradesh—Ajay Gupta, Atul Gupta and Rajesh Gupta—considered close to former South Africa president Jacob Zuma, came under the scanner of the South African regulator for alleged money-laundering. These incidents, along with the need to preserve capital at a time when state-run banks are struggling with high levels of debt and low levels of profitability, has prompted the government to kickstart the rationalization process. The government had promised a massive Rs2.11 trillion capitalization plan for state-run banks but with the Reserve Bank of India doing away with restructuring norms like SDR and S4A, banks are expecting a massive increase in provisioning requirements that could impact profitability. Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Summarise this report in a few sentences.
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road map released for consolidation of overseas operations of state-run banks. rationalization will be through closure of overseas branches, subsidiaries, representative offices and remittance centres. 69 more operations have been identified for consolidation. bank of baroda forced to shut operations in south africa after loans to firms owned by three brothers from Uttar Pradesh came under scanner. bank of baroda was forced to close operations in south africa after its loans to firms owned by three brothers from Uttar Pradesh came under scanner.
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Sanjaya Gupta, MD, PNB Housing Finance in an interview to CNBC-TV18 speaking about the business and the outlook going forward said the growth on loan against property has been stable along with the credit quality on that portfolio. However, loan against property is not a regulated product and therefore different lenders have different nuances, he said. PNB Housing has always has a conservative approach. Therefore the quality of the portfolio is strong, he added. The rating agencies like Fitch and others have put Punjab National Bank (parent of PNB Housing Finance) on a negative watch with negative implication. Will this impact capital raising for PNB Housing? Gupta said it won’t be a concern but the real concern is on liquidity position at the macro level, and the way the G-sec curves have been moving up they are bound to adversely impact the entire housing finance sector. Most of the companies borrow about 50-55% from capital markets. With regards to corporate lending, he said the company has also been conservative in choosing the developers, the projects and market positioning of the projects, adding that they generally lend to mass market projects and avoid luxury-end projects. He said loan growth for the company has been regulated, well-planned and not aggressive. The company raised about Rs 30,000 crore in the last 24 months and Rs 18000 in the last 12 months, said Gupta, adding that only about 27-30 percent of borrowings will be re-priced in FY19. Summarise this report in a few sentences.
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loan against property is not regulated product and different lenders have different nuances, said Sanjaya Gupta. rating agencies like Fitch have put Punjab National Bank (parent of PNB Housing Finance) on a negative watch. most of the companies borrow about 50-55% from capital markets. he said company has been conservative in choosing developers, the projects and market positioning of the projects.
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Amid rising volatility in the domestic stock markets, as gauged by the 30-share barometer Sensex and Nifty, which have shown wild swings over the last week, if response to bouts of global stock sell-off, SEBI Chairman Ajay Tyagi says that the stock market will continue to remain volatile for some more time. India’s stock market opened higher on Monday following a sharp recovery on Wall Street on Friday last week with Dow Industrials rising 330-points and better Q3 earnings by some of the blue-chip companies back home. The Sensex gained 272.48 points to hit the day’s high of 34,278.24 whereas NSE Nifty marked the day’s peak of 10,538.1, up by 83.15 points. However, the current recovery has come after a heavy turmoil witnessed last week, and during the three-day sell-off, up until 6 February, the Sensex washed away 1,710 points which included a massive intraday slump of 1,274 points on Tuesday (6 February 2018). In fact, in its recent bi-monthly policy, RBI noted that the financial markets have become volatile due to concerns surrounding the pace of normalisation of the US Fed monetary policy especially after a report released by the US Labor Department said that wages shot up in recent times, adding to the fear of rising inflation. “Financial markets have become volatile in recent days due to uncertainty over the pace of normalisation of the US Fed monetary policy in view of January payrolls data showing rapidly accelerating wage growth and better than expected employment,” RBI said in its Sixth Bi-monthly Monetary Policy Statement released on February 7th. In his address to the press, RBI Governor Urjit Patel on Saturday said the stock market bubble should not lead to a very major problem and said that regulators must be cognizant of the risks going forward. “There has already been a correction not only globally but in India and therefore in a way it underscores how capital markets can change direction,” RBI Governor Urjit Patel said. “So far neither globally nor in India have we felt that this bubble could lead to a very major problem. However, as financial market regulators both RBI and Sebi need to be cognisant of the risk going forward,” Urjit Patel added. Summarise this report in a few sentences.
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the Sensex and Nifty have shown wild swings over the last week. the Sensex gained 272.48 points to hit the day’s high of 34,278.24. the Sensex washed away 1,710 points during the three-day sell-off. the recovery has come after a heavy turmoil witnessed last week.
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ITEM 3. LEGAL PROCEEDINGS In April 2013, the Company commenced an action against AVX Corporation and AVX Filters Corporation (collectively “AVX”) alleging that AVX had infringed the Company’s patents by manufacturing and selling filtered feedthrough assemblies used in implantable pacemakers and cardioverter defibrillators that incorporate the Company’s patented technology. Two juries in the United States District Court for the District of Delaware have returned verdicts finding that AVX infringed three of the Company’s patents and awarded the Company $37.5 million in damages. In March 2018, the U.S. District Court for the District of Delaware vacated the original damage award and ordered a retrial on damages. In the January 2019 retrial on damages, the jury awarded the Company $22.2 million in damages. On July 31, 2019, the U.S. District Court for the District of Delaware entered an order denying AVX’s post-trial motion to overturn the jury verdict in favor of the Company. On August 23, 2019, AVX filed its notice of appeal with the United States Court of Appeals for the Federal Circuit. On September 5, 2019, the Company filed its notice of cross-appeal with the United States Court of Appeals for the Federal Circuit. In January 2015, LRM was notified by the New Jersey Department of Environmental Protection (“NJDEP”) of NJDEP’s intent to revoke a no further action determination made by NJDEP in favor of LRM in 2002 pertaining to a property on which a subsidiary of LRM operated a manufacturing facility in South Plainfield, New Jersey beginning in 1971. LRM sold the property in 2004 and vacated the facility in 2007. In response to NJDEP’s notice, LRM further investigated the matter and submitted a technical report to NJDEP in August of 2015 that concluded that NJDEP’s notice of intent to revoke was unwarranted. After reviewing the technical report, NJDEP issued a draft response in May 2016 stating that NJDEP would not revoke the no further action determination at that time but would require some additional site investigation to support the Company’s conclusion. The Company is cooperating with NJDEP and has begun the requested additional investigation. In late 2019, NJDEP informed LRM that NJDEP was considering taking over the investigation of the property in light of LRM’s difficulty in securing access to the property from the current owner. Separately, in April 2019, NJDEP indicated it believes the property to be a contributing source to local groundwater contamination. The Company disagrees with NJDEP’s assertion; however, the Company is cooperating with NJDEP on this matter. The Company does not expect that this environmental matter will have a material effect on its consolidated results of operations, financial position or cash flows. We are party to various other legal actions arising in the normal course of business. A description of pending legal actions against the Company is set forth in Note 13 “Commitments and Contingencies” of the Notes to Consolidated Financial Statements contained in Item 8 of this report. Other than as discussed in Note 13, we do not believe that the ultimate resolution of any pending legal actions will have a material effect on our consolidated results of operations, financial position or cash flows. However, litigation is subject to inherent uncertainties and there can be no assurance that any pending legal action, which we currently believe to be immaterial, does not become material in the future. ITEM 4. Summarise this report in a few sentences.
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MINE SAFETY DISCLOSURES
The Company is involved in a legal dispute with AVX Corporation and AVX Filters Corporation, alleging that AVX had infringed the Company's patents by manufacturing and selling filtered feedthrough assemblies used in implantable pacemakers and cardioverter defibrillators. Two juries in the United States District Court for the District of Delaware have returned verdicts finding that AVX infringed three of the Company's patents and awarded the Company $37.5 million in damages. The U.S. District Court for the District of Delaware vacated the original damage award and ordered a retrial on damages, which resulted in the Company being awarded $22.2 million in damages. The Company is
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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 Marketing Officer Programme Visit IIM Lucknow IIML Chief Executive Officer Programme Visit Markets have witnessed a time-wise correction over the past six to nine months, and are in a consolidation phase with strong domestic liquidity supporting it, said, CIO (equities),. In an interview with Prashant Mahesh, Upadhyaya said investors could expect low double-digit to mid-teen returns over a three- to five-year horizon.Edited excerpts:The market is in a consolidation phase. Strong domestic liquidity continues to support the market, but you also have growing macro challenges, rising interest rates across the globe and corporate earnings which are not so great yet. Given these conditions, though the markets have inched up, they will move in a narrow range, unless there is clarity on how earnings will pan out. In addition, going forward, we are moving closer to general elections and market could well be driven by expectations on the political front.It is difficult to predict headline earnings at this point of time. Most of the analyst estimates point to a range of 22-25% earnings growth for Nifty basket in FY19. It is also true that around 50% incremental growth in FY19 over FY18 will be contributed by banking sector, which includes the public sector banks and some of the corporate-facing private banks. Predicting earnings has become very difficult given how the NPA situation has evolved and also the February circular by RBI which makes provisioning level in banking system go up in next six months or so. If I were to make a guess, I think we would end the coming year again at 12-15% earnings growth.To an extent, the market has witnessed a time-wise correction by moving in a narrow band over the past six to nine months. Hence, from a pure valuation perspective compared to mid- 2017, we are in a better shape today. But even after recent sideways movement, the market is still trading above its historical averages. In such a scenario, finding too much value is anyways difficult. Optically, value seems to have emerged in beaten-down sectors where there are multiple fundamental concerns and headwinds today. However, external triggers are required in these pockets to witness upside in stock prices. Taking a bet there would be like taking a bet on an external trigger, which may or may not happen. Hence, following a complete value strategy may not work. Given this, we continue to focus on growth at reasonable price. We look at steady growth in earnings and whether we are paying right valuation for those businesses. If we feel valuation is uncomfortable despite better growth, we generally do not invest in those names.Consumption growth across the board continues to be strong. Earlier, it was driven only by urban consumption, but post normalistation of GST and demonetisation, we are seeing good growth in rural economy as well. Almost all consumption trends such as auto sales, consumer durables growth, air passenger traffic and FMCG continue to witness strong growth momentum. Even enablers like retail banks and financials are registering strong growth. We have invested across these sectors depending on valuation comfort. We continue to focus on infrastructure recovery, led by central and state government spending which is visible in roads, railways and housing. We are part of this story through sectors such as capital goods, engineering and cement. Our portfolio largely has a domestic focus with some global plays like IT and global commodities. Earnings recovery seems to be taking shape and corporate confidence is gradually improving. From a three- to five-year perspective, stock market returns may grow in line with earnings growth. I think low double-digit to midteens kind of CAGR returns are possible given current valuations and where we are in the earnings cycle.There seems to be better commentary from IT companies in the past couple of months. The deal pipeline seems to be getting better except in the BFSI vertical. This is one of the sectors which is under-owned by most institutional investors. In a scenario, where overall market valuations have gone higher and there is some nervousness, this sector has come into focus. The growth rates have not sharply changed but that steadiness and expectations of incremental improvement have helped investors deploy some money here.It is difficult to take a position on Pharma sector as a whole. It is futile to predict the timing or outcome of regulatory approvals which are so critical for regaining future profitability, especially for US generics. For example, in case of US generic businesses, the profitability is consistently going down over the past several quarters and their ability to make up for the loss in profitability of existing products by launching new products is also stunted because of lack of approvals. You are stuck in a situation where you cannot really predict the future. Hence, to take a large call on this sector will be like taking a blind bet at this point of time. So, we are adopting a very stockspecific approach in this sector.High oil prices will fuel retail inflation and lead to a rise in current-account deficit (CAD) as well. CAD could go to 2.25-2.5% of the GDP this year. Incrementally, it is worsening as compared to the levels of previous years. Higher crude prices also mean lower corporate profitability with a lag. These are the negatives we are closely watching. Summarise this report in a few sentences.
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market has witnessed a time-wise correction over past six to nine months. market is in a consolidation phase with strong domestic liquidity supporting it. analysts estimate a range of 22-25% earnings growth for Nifty basket in FY19. despite recent sideways movement, the market is still trading above its historical averages. a spokesman for the sabhai group said the market is in a "very good shape"
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Even after the consensus to cut oil supply has been made in the OPEC+ meeting, oil prices in the international market are on a fall. The falling oil prices have drastically hit the profitability of Indian oil refineries as lower crude price in international markets directly results in lower sales realisation. In the current low crude oil price regime, it is believed that upstream companies like ONGC and Oil India will witness significantly lower total income during FY21 on account of a sharp deterioration in their price realisation as well as lower production for the next two quarters, according to a report by Care Ratings. Travel restrictions around the world and low demand for oil have brought down the price of Brent crude oil to below $28 a barrel today. Oil consumption worldwide is down nearly 30 per cent while investors have grown more skeptical about the abilities of major producers to stabilise the market. The crude prices in the US have fallen to a 21-year low as storage capacity is running out. Also Read: Business disruptions bring group structures into focus, will fast track merger be the way out? April is expected to be the bleakest month for the industry, with demand set to plummet by 29 million barrels a day compared with the same month last year, said the International Energy Agency. The plunge in demand would be even more damaging for the industry and the millions of people it employs around the world without the historic recent steps announced by OPEC+ and G20 countries, it added. However, on the brighter side, it is expected that if production falls sharply, the second half of 2020 will see demand exceeding supply as a large portion of oil will also go into strategic stocks. Summarise this report in a few sentences.
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falling oil prices have drastically hit profitability of Indian oil refineries. travel restrictions around the world and low demand for oil have brought down price of Brent crude oil. oil consumption worldwide is down nearly 30 per cent. the crude prices in the us have fallen to a 21-year low as storage capacity is running out. if production falls sharply, the second half of 2020 will see demand exceeding supply.
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Maharashtra Governor Bhagat Singh Koshyari insisted on holding the final year exams of degree students in the current situation, but Chief Minister Uddhav Thackeray rejected the demand showing “the spine Thackerays are known for”, the Shiv Sena said on Tuesday. The ruling Shiv Sena also said it is not possible to hold examinations in the current situation, triggered by the COVID-19 crisis. Referring to the lockdown, imposed in March to contain the spread of the novel coronavirus, an editorial in Shiv Sena mouthpiece ‘Saamana’ said people faced strict imprisonment (due to movement restrictions) for two-odd months. The Thackeray government in the state has eased lockdown to a certain extent, but asked people to observe restraint to ensure the disease is contained, it said. The direction of life stands completely altered now and there will be restrictions on the undisciplined behaviour of many, the Marathi daily said, adding that not observing discipline can cost life. Governor Koshyari insisted on holding the final year examinations of degree courses. The chief minister rejected the demand showing the spine Thackerays are known for. It is not possible to hold the final year examinations of universities in the current situation, the Shiv Sena said. Students can be considered as having passed on the basis of semester examinations held in colleges, it said. The chief minister has made it clear that the academic year will begin from June itself. “This means schools will reopen in districts where there is no transmission of coronavirus, the Thackeray-led party said. Shops will be reopened in phases, while temples will remain closed, it said. The Shiv Sena also suggested the people to use bicycles while going to markets or shops. The coronavirus crisis is not yet over. Therefore, Prime Minister (Narendra) Modi too has said that (people) cannot afford to behave irresponsibly, the Sena said, citing a spike in COVID-19 deaths in countries like the US. It said the US government had eased restrictions to boost economic activities there and people moved out, but the step proved detrimental (with rise in COVID-19 cases). The Thackeray government has supplied limited oxygen to begin certain business activities, but people will have to move out in a fettered manner, the Marathi publication said. It noted that late freedom fighter and social reformer Lokmanya Tilak had given a call of ‘Punashch Hari Om’ (bugled resumption of his activities) when he restarted work at Kesari newspaper in 1899 after being released from jail during the British era. Now, to revive public life, the Thackeray government has given the call of ‘Punashch Hari Om’ (by easing lockdown to some extent), when the country is independent and people are fettered by the lockdown, the Sena said. People should not run amok (after easing of restrictions). People should not cause one to chant Hey Ram instead of Hari Om. For now, lets welcome the Punashch Hari Om’, it said. Summarise this report in a few sentences.
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Maharashtra governor Bhagat Singh Koshyari insisted on holding the final year examinations of degree courses. but chief minister Uddhav Thackeray rejected the demand showing "the spine Thackerays are known for" the ruling Shiv Sena also said it is not possible to hold examinations in the current situation, triggered by the COVID-19 crisis.
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NEW DELHI: The government's Rs 88,139-crore capital infusion in struggling public sector banks ( PSBs ) should help in part to mitigate risks, but resolution of bad assets and continued high credit costs hinder the sector's near-term performance, Fitch Ratings said today.While the capital infusion plan was less than half of its estimate of $65 billion needed for the sector, Fitch said yesterday's announcement will encourage banks to resolve their non-performing loan (NPL) stock faster as improved capital buffers bolster their ability to absorb potential large haircuts.Also, the additional capital buffers will enhance the banks' ability to raise equity capital.In a report released today, Fitch said recapitalisation is "short of enabling the banks to meet higher regulatory capital burdens under Basel III in the face of persistent weak earnings".The total amount is around 30 per cent of the state banks' equity base and is a significant shift away from the earlier drip-feed approach."It should go a long way in plugging the capital gap amid expectations of more haircuts and subdued earnings," it said.Fitch said the capital infusion will stem the downward pressure on Viability Ratings (VRs), which have been downgraded several times over the last 3-4 years, and improve their access to capital markets which had been constrained due to poor health and weak valuations.The decision to front-load around USD 12 billion through recapitalisation bonds would put banks in a slightly better position to absorb losses expected from resolution of NPLs.The capital infusion "should help in part to mitigate the risks that Indian state banks face on account of weak asset quality and poor earnings", Fitch said.But unwinding of these risks will take some time, "implying that resolution of bad assets and continued high credit costs will hinder the sector's near-term performance", Fitch said maintaining its negative sector outlook to reflect these pressures.It said the average core capitalisation for the state-owned banks would be likely to reflect a cumulative increase of around 140 basis points.Large, relatively better positioned banks which are most capable of supporting growth would receive a greater share of this first capital tranche, leading to a varying impact on capitalisation across banks, it said.In contrast, private banks' core capitalisation is better, with reasonable buffers, despite the deterioration in their asset quality.Fitch expects the system's gross NPL ratio to increase to around 11.5 per cent in 2017-18 due to further slippages from various identified stressed pools, which will continue to dampen asset quality that is already weak."The pace of slippage should decline, while the system's weak provision cover ratio remains a key risk to capital," it said.Fitch said the earnings of a number of state banks remain highly vulnerable, and some may report further losses from realisable values on bad loans being sharply lower than budgeted amounts.In contrast, the earnings of private banks have deteriorated significantly in recent years, but still enjoy buffers that can withstand moderate amounts of stress. Summarise this report in a few sentences.
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government's Rs 88,139-crore capital infusion in struggling public sector banks. resolution of bad assets and high credit costs hinder sector's near-term performance. recapitalisation is "short of enabling banks to meet higher regulatory capital burdens" despite announcement, banks will resolve their non-performing loan stock faster. meanwhile, private banks' core capitalisation is better, with a 4% increase in the last year.
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New York City, the epicenter of the COVID19 pandemic in the US, now alone has over 100,000 novel coronavirus cases, more than the confirmed cases in China and the UK, according to the official data. According to the data from the New York City government, an increase of at least 5,695 cases on Sunday put New York City's total number of coronavirus infections at over 104,410 as of April 12 and 27,676 hospitalisations. The city's death toll is 6,898. New York City now has more coronavirus cases than China and the UK. According to estimates by Johns Hopkins University, there are 85,208 coronavirus cases in the UK, 83,135 in China and 71,686 in Iran. The US has 557,300 cases and over 22,000 people have died so far. Globally the number of COVID19 cases is over 1.8 million and 114,185 people have died from the disease. More than 189,000 cases have been reported in New York state, the hardest-hit state in the US, and the death toll now stands at 9385. 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 New York City Mayor Bill de Blasio told reporters on Sunday that the past week was a "very, very tough" one in the city's hospitals. “And we have never, ever underestimated this enemy we're fighting. Coronavirus is ferocious and has presented us with challenges that we have never ever seen before. And that certainly our nation has not seen anything like in a century.” He said while it was a “tough and painful week” for New York City, it was not as worse as had been initially expected. New York Governor Andrew Cuomo said 758 more people died in the state from coronavirus in a 24-hour period, describing it as "terrible news" even as the infection rate continues to slow and stressed he will work with New Jersey and Connecticut on a coordinated plan to reopen the economy that also safeguards public health. The state is witnessing mixed results as change in total number of hospitalisations is down but the ICU admissions and intubations ticked up. "You're not seeing a great decline in the numbers, but you're seeing a flattening. And you're also seeing a recurrence of the terrible news, which is the number of lives lost, which is 758" on April 11. Cuomo said the big question on everyone's mind is when will the economy reopen. “People want to get on with their lives, people want to get out of the house. (They have) cabin fever. We need the economy working, people need a paycheck. Life has to function,” he said at his daily briefing Sunday. The Governor stressed that he wants to reopen the state and the economy as soon as possible. "Let's just end this nightmare right. (It's like) Groundhog Day. You get up every day, it's the same routine, you almost lose track of what day of the week it is because they don't even have meaning anymore,” he said making a reference to the movie. Cuomo underscored that the “caveat” in re-opening the economy is that one has to be “smart in the way we reopen” and there is need for a coordinated, regional and safe approach. “Nobody wants to pick between a public health strategy and an economic strategy. And as governor of the state, I'm not going to pick one over the other, we need a public health strategy that is safe, consistent with an economic strategy.” He emphasised that the last thing New York needs is an uptick in the infection rate and hospitalization numbers that the state has worked so hard to bring down. “So we need a strategy that coordinates business and schools and transportation and workforce.” Reopening the state and moving people back in the workforce would require more and faster testing as well as federal help. He said he will be coordinating with New Jersey Governor Phil Murphy and Connecticut Governor Ned Lamont later today on coming up with a reopening plan that is a public health plan, safeguards public health but also starts to move us towards economic activation.” He said the state will also pass an executive order which directs employers to provide essential workers with a cloth or surgical face mask free of cost to their employees when they are interacting with the public. The Governor and de Blasio also continued to disagree over when to open public schools across the state. “We're not going to open any schools until it is safe from a public health point of view. We won't open schools one minute sooner than they should be opened but we won't open schools one minute later than they should be opened either.” “Am I, as I sit here, prepared to say what we'll be doing in June? No. I do not know what we will be doing in June. Nobody knows what we will be doing in June.” Meanwhile, Texas Governor Greg Abbott signed an order on Sunday, extending the disaster declaration for all Texas counties in response to the COVID-19 outbreak. Texas officials said on Sunday about 13,500 state residents have tested positive for the COVID-19, and 271 died. Harris County has the most confirmed cases with more than 3,500 positive tests, followed by Dallas County with over 1,600, according to the Texas Department of State Health Services. "By extending disaster declaration, we are ensuring the state of Texas continues to have adequate resources and capabilities to support our communities and protect public health,” Abbott said. "I urge all Texans to continue practicing social distancing and abide by the guidelines laid out by the CDC and my executive orders to slow the spread of COVID-19. Summarise this report in a few sentences.
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new york city alone has over 100,000 novel coronavirus cases, official data shows. the city has more coronavirus cases than China and the UK. globally the number of COVID19 cases is over 1.8 million. more than 189,000 cases have been reported in new york state. a vaccine works by mimicking a natural infection.
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The ongoing economic crisis caused by the COVID-19 pandemic is “deeper and likely to be more protracted” than past recessions in Singapore, the city-state’s central bank said in a report on Wednesday. Some sectors of the economy, especially those that are travel-related, may not return to pre-pandemic levels by the end of next year as the Singapore economy faces a “gradual but uneven” recovery, the Channel News Asia reported, citing the report by Monetary Authority of Singapore (MAS). The travel sector is expected to see prolonged headwinds as borders reopen “very gradually”, said MAS. Singapore may “lag the global recovery in air transport given the absence of domestic flights,” cautioned the MAS. Even though green lanes and travel bubbles are being progressively rolled out, the revival of cross-border travel may be “hesitant” due to recurrent waves of infection and strict travel measures. In the consumer-facing sector, the initial boost – due to the easing of distancing measures in the third quarter – is expected to wane in the final three months of the year, said MAS. “On the demand side, it remains unclear whether the early rebound in the retail and F&B sectors from pent-up consumer demand can be sustained, as tourist arrivals will stay depressed and heightened economic uncertainty will continue to cap discretionary spending by households,” the central bank said. Some of the sectors that have held up amid the pandemic could also moderate moving ahead. The pharmaceutical segment, for instance, could see a decline in the level of activity in the coming quarters. Improvements in the labour market will likely be “uneven and slow”, with the resident unemployment rate – made up of citizens and permanent residents – likely to stay elevated in 2021, keeping wage growth low, said MAS. The pandemic and a “circuit breaker” implemented to curb the spread of COVID-19 dragged the Singapore economy into a record slump in the second quarter. The resumption of business activities following the end of the circuit breaker may have slowed the economic decline in the third quarter, but this effect is not expected to last into the fourth quarter. “With most industries already reopened, the supply-side impetus to growth will taper off in the quarters ahead,” the central bank said in its report. “At the same time, the shock will continue to propagate through the demand side of the economy as firms and households continue to be restrained by income loss and increased uncertainty, therefore holding back on investment and discretionary spending.” MAS expects economic momentum to slow in the final quarter of 2020, reiterating the Ministry of Trade and Industry’s (MTI) earlier projection that the economy will contract between 5 and 7 per cent for the full year. Singapore on Wednesday reported seven imported cases of COVID-19. All seven imported cases were placed on stay-home notice upon arrival in Singapore, the Ministry of Health (MOH) said. There was no local case from the community or either from the foreign workers’ dormitories which had been the biggest clusters for spreading the coronavirus at peak. With Wednesday’s cases, Singapore’s total COVID-19 tally reaches to 57,987. The city state’s Multi-Ministry Taskforce regularly reviews border measures to manage the risk of importation and onward local transmission from travellers, said MOH. “Given the surveillance regime that we have put in place for travellers serving Stay-Home Notice (SHN) at their own residence, we will also adopt a risk-based approach and allow more travellers to serve their 14-day SHN at a suitable place of residence,” it said. From January 1, 2021, all incoming travellers will also be required to pay for their stay at dedicated SHN facilities, and will be responsible for their inpatient medical bills if they have onset of symptoms of COVID-19 within 14 days of their entry to Singapore, said MOH. The six imported cases, reported on Monday, came from Japan, France, Indonesia and the United Kingdom. Forty-three confirmed cases are currently in hospital while 26 are recuperating in isolated community facilities for mild symptoms. Four people have recovered from the virus and were discharged from hospitals on Monday, taking the total recoveries to 57,883. Summarise this report in a few sentences.
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travel sector expected to see prolonged headwinds as borders reopen. consumer-facing sector expected to wane in final three months of the year. pandemic and a "circuit breaker" implemented to curb spread of COVID-19 dragged the economy into a record slump in the second quarter. resumption of business activities following end of the circuit breaker may have slowed the decline in the third quarter.
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During our recent interaction with Steffen Knapp, Director, Volkswagen India, we got an insight of what the new normal means for the company, the expected impact on sales and if the lockdown will affect the timelines of the upcoming launches. The automotive industry being one of the most manufacturing intensive industries has been really hard hit by the effects of Coronavirus. In order to understand the long-term effects of the lockdown and the virus on the sector, Express Drives spoke to Steffen Knapp, Director, Volkswagen India. From understanding the new normal to the expected impact on sales and new model launches Steffen provided a deep insight into many topics. He also told us if the development of the Volkswagen Taigun will be affected by this Coronavirus crisis or not. Express Drives: Many people have been asking us this – Once car companies get back to business, once the dealerships open, car buying is going to be a very different experience. So what can people expect once the lockdown ends and how will people buy cars? Steffen Knapp: I think it would be a dramatic change. We have summarised the activities we are doing under the slogan, “Safe and Sanitized” journey. In this journey, you have to go on multiple routes. The obvious route is digitizing your complete sales and service funnel even deeper. We just announced that you can book your cars online along with service appointments and online appointments. So just to describe what that means, you go online, choose your preferred dealer and make a decision where it is a bring-and-drop service. Then you put in the date after which your date and appointment are verified. Your vehicle will be taken away from you and there will be a first inspection done around the car. This will be recorded on video and will be sent to the customer along with the changes required during the service. You have to confirm these changes and then this job is done in the car, and the car is brought back to you. A lot of the processes we are implementing are contactless because customers are lacking confidence at the moment. Apart from this, what we are doing is we have sent out strict guidelines to our partners in terms of sanitization. So all the touchpoints are going to be sanitized. The ones which are frequently touched are to be sanitized every hour. For instance, all our employees wear masks and gloves. We will have a regular temperature measurement for our employees. The entire process, hence, pf going to a dealership will be completely clean and sanitized. That is essential in order to bring back the business as it was before the crisis. So here are the two main streams under the summarization of “Safe and Sanitized”. First is the online push, which is clearly necessary today and at the same time it’s important to focus on the premises where we are working, where we are servicing, and selling vehicles. The people who are working with us need to be completely sanitized. We have launched online premises recently and have trained our complete sales and service force accordingly. You just spoke about the online services that you came up with. What is your expectation from online or the digital part of the business? How do you see that growing and what kind of contribution do you see that making to the overall business? It was close to zero and the past and in the car business, in particular, people tend to go to the dealership. They inform themselves, for instance, via our website or other publications, take their decision in a lot of cases remotely, and then they come and look and have to tangibly touch the vehicle. So the classical transaction was done in the dealership, during the negotiations, and then they came to a conclusion. I personally look at some examples we have in the group. In Sweden for instance, 15% of all car sales are done online, in our group. So I expect this to go into similar lines. So we will go around 15% in particular in the beginning when Covid-19 is still very visual for everybody. People are scared. We will see that a lot of business will be done there and I think it will be around 15% in the coming years. In the next few months, people are going to be concerned about the virus. Do you see that as an opportunity wherein people will want to buy more personal vehicles? Yes, definitely! That’s a huge opportunity and especially given the experience we have in China. Individual mobility is growing tremendously to the extent that we have more traffic jams in the cities because people tend to use their own vehicles and they are looking out for accessible individual mobility. So I think in India, we will see a major push in the used car business because at this time people are also scared about their financials. They are scared of their salary, their jobs, and businesses. I think they will rather look at accessible individual mobility and I think there is a chance for two-wheelers. We will also see growth in the used car and in particular from my point of view in terms of accessible mobility. The Polo, for instance in the small car category and in particular as a used car, where we believe Volkswagen has been working extensively and we will see this growing tremendously. And this is no miracle analytics. It is exactly what we see in China. It is exactly the same pattern. You have three trends. I mentioned it already. It’s the need for sanitization, a clean process. You will see the online space growing tremendously and we see individual mobility coming back. So used car is the segment where you see most of this growth going initially? Yes. All accessible solutions like leasing solutions, like residual value, financing models where you can either reduce the necessity to purchase or you go into models where you have small monthly installments. There is the Volkswagen secure concept wherein basically we are guaranteeing a certain residual value after three years. And with this model, we are able to reduce the monthly installment by more than 30%. That is interesting for customers because their outflow of liquidity is not that big. So these kinds of models will be popular in the new car space going forward along with a lot of financing offers. Attractive financing offers are important because customers will be cautious about the investments, clearly in such an environment which we see right now. Once the carmakers get back to selling cars given the fact that the last two months have been really bad, can they expect some great offers in terms of discounts? I personally don’t believe that. You will see interesting offers. You will see the value of us and the industry, but one can’t have to forget that our industry has been hit hard. We have nothing to give for free because, at the end of the day, we also have to safeguard our companies. And if we start going all bananas with discount levels and so on, I think this would be the wrong signal and it is financially not viable for us. For Volkswagen, I can say that we will not do this as we are clearly determined on the residual value. We are a reliable brand and this is what we always want to be. What we will definitely do is that we will offer a very interesting value proposition, be it financial solutions, be it a good car at a good value. And we will offer obviously a very safe journey, not only in the handling of the process like we described before but also in the used car. So in the used car arena, you will have interesting offers from us, like fully refurbished cars with an additional year of warranty, sanitized vehicles and this is a process, a fair business model for the customer. So I don’t think that the industry will push out tremendous discounts. You know, it’s also not recommendable, to be honest. Is the launch timeline for the upcoming SUV is going to be affected by this crisis of a few months? No. We have launched the Tiguan All Space in March. All the vehicles are in the country so fortunately, before the end of the last financial year, we had imported the Tiguan AllSpace as well as the Tiguan. So once the lockdown is over, we will deliver these vehicles accordingly to our dealerships. So there is no change in strategy. And the third SUV is the Taigun, which is the first product of India 2.0, which is so far on track to meet all its requirements. There will be an additional SUV coming and that is also on track so far. What is your expectation from the government in terms of the policy? What can it do to immediately propel the auto sector? I’m a big supporter of a free economy and means that we as a player in the market have to provide interesting offers to our customers. That’s clear. So I’m not saying that it’s the task of the Government to fix everything. That’s not my policy. I think a Government has two objectives. First, they have to make sure that the complete framework of doing business has to be stable so that we can plan because, in our business, our investments are always long-term and huge. So my first recommendation is to be really clear about what you do, be clear how you are coming back to normality. If not directly to the industry but definitely for the small and medium companies. It’s a big portion of the Indian population being dependent on SME and MSMEs so we have to give them some relaxation, be it in taxes, be it in giving easy access to liquidity in order to overcome this crisis. There are a lot of customers coming out of this group because they are employed in small companies. We have only a small portion of big players in India who are employing a lot of people. I think there must be some initiatives taking place. Secondly, if I look at the importance of the auto industry in India, it is 7% of the gross domestic product and also, there is a high proportion of exports, which are bringing money into the country. Our association SIAM and FADA have written multiple letters to the government and proposed multiples ideas. Scrappage policy is something that is not only helping us as an industry but is also helping the environment. You get old clunkers out of the roads and you get new cars with the latest technologies on the road. At the same time, the government is also running the GST on those vehicles. So that’s an interesting proposition and I always believe it should be a win-win situation. So these are the three elements what are really for me. For me, it is really required to announce a clear plan, not to change it frequently, make it on time because to build up a supply chain, one needs to get the people back from their home villages into the factories and it’s not an easy thing. How do you see the sales and growth turning out to be at the end of the year? There will be no growth and everything here depends on the speed we can pick up again. Also, we do a lot of scenarios. We have five scenarios. We’re looking at the curves from countries that are ahead of us. So for instance, in China, six weeks after the lockdown opened, they were back to 90% of their pre-COVID-19 workshop business. So it resumed in six weeks’ time but it is impossible in India for things to be that fast. We think most likely not but you never know. Not a lot of customers are refraining from purchasing a vehicle. The intention is the same. They only think that what has changed is the budget. So they are not prepared to pay so much more. So I can tell you it’s very difficult analytics and very difficult planning. I will give you an example. In 2019, in the last quarter, I was not expecting better car sales than in 2018. I was not expecting that the market goes back to 2018 levels but what happened! We actually sold 1100 more cars in the last quarter than we expected. You cannot take two or three months of no sales and have no hit. So, to put it in a nutshell, it is very difficult to predict. I think we will see a hit clearly but we don’t know where the scope is. Summarise this report in a few sentences.
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During our recent interaction with Steffen Knapp, Director, Volkswagen India, we got an insight into what the new normal means for the company. he also gave an insight into the expected impact on sales and new model launches. also gave an insight into if the development of the Volkswagen Taigun will be affected by this crisis. he also told us if the development of the Volkswagen Taigun will be affected by this crisis or not.
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Valuations had touched 2000 and 2008 lows on a P/B basis earlier this week, although the return on equity (RoE) levels are lower now than before. So, we could say it did touch close to the lows, Suhas Harinarayanan- Head, Institutional Equity Research, JM Financial Institution Securities said in an interview to Moneycontrol's Sunil Shankar Matkar. Q) What are your thoughts on the stimulus package announced by the government and RBI? A) The RBI seems to have delivered on most demands made by the financial markets and the banking sector. They could have gone one step further to ensure that banks forward lendings to all sectors including NBFCs. The government's efforts at this stage seems to have been focused on the welfare of the lower wage earners from the economic impact and not on the industry side. We are expecting more measures in the coming days to alleviate the pain that industry is likely to go through due to loss of business that has already taken place and that are likely to take place in coming days. Our view is that the economic impact could be anywhere between 3-6 percent of GDP and to that extent, the additional 78bps (of GDP) spending falls short of expectations. Q) The market seems to be in a consolidation mode after a sharp fall followed by some recovery. Have we already seen the bottom? Valuations had touched 2000 and 2008 lows on a P/B basis earlier this week, although the return on equity (RoE) levels are lower now than before. So, we could say it did touch close to the lows but a sustainable recovery is only possible if the number of COVID cases peak globally first and then, in India. Q) What impact will COVID-19 led lockdown have on earnings? Also, do you expect the recovery, which was likely in FY21, to happen in FY22? A) We are still working on our earnings and different companies could get impacted differently. Our base case is that activity would be locked down for most of April 2020, and then gradually recover depending on the sector. It is too early to talk about FY22 at this stage. Q) Do you expect global growth to be negative in coming quarters given the rapid increase of infected cases outside of China? A) Yes, that would be the logical conclusion. Q) FII outflow slowed down in the last few sessions. What do you make of it? A) Some amount of sellers fatigue looks to be setting in but more importantly, valuations had looked like it hit lows and we witnessed different countries announcing stimulus packages this week and the market reaction could have been in relation to that. Yes, FIIs had been buying at lower levels but we think they will adopt a wait and watch approach and only buy slowly at lower levels. Q) Crude oil has fallen more than 60 percent from its January 2020 high. But do you feel the fall is favourable to India? A) Yes, this is a significant help but generally, such low levels of crude are negative for flows and global economic activity. So, there are always two sides to the argument. 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. Summarise this report in a few sentences.
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a sustainable recovery is only possible if number of COVID cases peak globally. FII outflow slowed down, but FII outflow slowed down. a sustainable recovery is only possible if number of COVID cases peak globally. a chinese government has urged banks to take action on the issue.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Investment and Interest Rate Risk We are exposed to interest rate risk related to our floating and fixed-rate investment portfolio and outstanding debt. The investment portfolio is managed consistent with our overall liquidity strategy in support of both working capital needs and strategic growth of our businesses. As of January 27, 2019, we performed a sensitivity analysis on our floating and fixed rate financial investments. According to our analysis, parallel shifts in the yield curve of plus or minus 0.5% would result in a decrease in fair value for these investments of $8 million, or an increase in fair value for these investments of $7 million, respectively. In fiscal year 2017, we issued $1.00 billion of the Notes Due 2021 and $1.00 billion of the Notes Due 2026. We carry the Notes at face value less unamortized discount on our Consolidated Balance Sheets. As the Notes bear interest at a fixed rate, we have no financial statement risk associated with changes in interest rates. Refer to Note 11 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for additional information. Foreign Exchange Rate Risk We consider our direct exposure to foreign exchange rate fluctuations to be minimal. Gains or losses from foreign currency remeasurement are included in other income or expense and to date have not been significant. The impact of foreign currency transaction gain or loss included in determining net income was not significant for fiscal years 2019, 2018, and 2017. Sales and arrangements with third-party manufacturers provide for pricing and payment in United States dollars, and, therefore, are not subject to exchange rate fluctuations. Increases in the value of the United States’ dollar relative to other currencies would make our products more expensive, which could negatively impact our ability to compete. Conversely, decreases in the value of the United States’ dollar relative to other currencies could result in our suppliers raising their prices in order to continue doing business with us. Additionally, we have international operations and incur expenditures in currencies other than U.S. dollars. Our operating expenses benefit from a stronger dollar and are adversely affected by a weaker dollar. We use foreign currency forward contracts to mitigate the impact of foreign currency exchange rate movements on our operating expenses. We designate these contracts as cash flow hedges and assess the effectiveness of the hedge relationships on a spot to spot basis. Gains or losses on the contracts are recorded in accumulated other comprehensive income or loss, and then reclassified to operating expense when the related operating expenses are recognized in earnings or ineffectiveness should occur. We also use foreign currency forward contracts to mitigate the impact of foreign currency movements on monetary assets and liabilities that are denominated in currencies other than U.S. dollar. These forward contracts were not designated for hedge accounting treatment. Therefore, the change in fair value of these contracts is recorded in other income or expense and offsets the change in fair value of the hedged foreign currency denominated monetary assets and liabilities, which is also recorded in other income or expense. Refer to Note 10 of the Notes to the Consolidated Financial Statements in Part IV, Item 15 of this Annual Report on Form 10-K for additional information. ITEM 8. Summarise this report in a few sentences.
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FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
This text discusses the market risks associated with investments and interest rates, foreign exchange rates, and the use of foreign currency forward contracts. It states that as of January 27, 2019, a 0.5% parallel shift in the yield curve would result in a decrease in fair value of investments of $8 million or an increase in fair value of investments of $7 million. It also states that foreign exchange rate fluctuations are considered minimal and that foreign currency forward contracts are used to mitigate the impact of foreign currency exchange rate movements.
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Navneet Damani Crude prices surged by 30 percent, skyrocketing for its largest single day percentage gain in history of crude markets on a single tweet from President Trump that Saudi Arabia and Russia would cut production by 10Mb-15Mbpd. The whole market looks like a different planet now after concept of alliance of Saudi- US showed depth of crisis facing the global oil industry as well as its growing importance to the US economy but not at the stage of something that is being seriously considered. Yet, there remains confusion in market as indeed, immediately, Russia shot down the idea that there was some agreement. Source: Motilal Oswal The growing momentum for some sort of agreement among major oil producers to reduce the world’s massive oversupply hinges on cooperation from countries beyond OPEC+, notably the US, but how realistic is this? Saudi Arabia is looking toward oil producers among the G20 nations to bolster any Opec-plus actions. Of list of G20 countries, only a handful have any significant oil production, and even fewer have any sort of export capabilities. Chief among these is the US, but other major producers include Brazil, Canada and Mexico. All this has sent prices up, although the “when,” “how,” and “who” of the potential deal remain unclear. And the larger the universe of players, the more difficult it will be to implement an agreement. Non-OPEC: Can US President Trump order a cut in US oil production? Under US regulations, the President does not have the power to tell private companies to stop producing oil. Much of regulatory power over oil industry in the US resides with individual producing states as American oil companies are not state owned. But, the bankruptcy and lay off might push companies to agree and open to OPEC-style market management. Pioneer Natural Resources and Parsley Energy have called for some sort of global negotiated settlement, which would include Texas regulators instituting mandatory production cuts. But, there are many concerns as: Trump not planning to ask domestic oil producers for cut. Since US & Canada (for the most part) have private oil producers unlike Saudi & Russia (Nationalized or controlled) that would be impossible to do. So, while a coordinated cut might be impossible, material production cuts in the US would appear likely, whether or not there is an official deal to do so. Trump could seek to reimpose ban on oil exports that was in place in the US for decades. US crude exports averaged 3.15Mbpd in March. But such move could end up hurting US oil industry more than it helps, flooding domestic markets and pushing down physical oil prices even if it might boost WTI oil futures. If the US is not going to cut production, what then, is President Trump talking about? One thing to consider is that Saudi Arabia can earn some goodwill by agreeing to call for an emergency OPEC+ meeting. The Saudis could be nodding along with Trump, commiserating about low oil prices. OPEC's exports in month of April, May, and June (if the price war persists) will be a battle of market share for a shrinking pie. If Saudis are cutting OSP by $10 to $12/bbl on Brent, other producers can either match it or be left completely behind. For rigs, no new rigs will come back if they cut production. Even the shale players need major blame as is the US shale industry had better balance sheets, and hadn’t spent billions on share buybacks, they could’ve been issuing debt today to get them through this tough period, rather than going bankrupt. President Trump could offer Russia sanctions relief and there are strong indications that this is on the table. The US has become increasingly zealous in its enforcement of sanctions and most recently targeted Russian state-run giant Rosneft regarded as key facilitators of Venezuela’s oil trade. US also sanctioned companies helping Russia build the Nord Stream 2 gas line into Europe. Lifting that burden could be one Trump tactic to bring Russia to the table. Saudi Arabia: The main motive behind Saudi Arabia taking U turn in its strategy to over supply the markets is the fear of US withdrawing troops from Saudi Arabia – the treats from the US if it doesn’t respond to the administration. Reports show that, Saudi Arabia is willing to cut output below 9 mb/d if others joined them. Again, this means Crown Prince MBS is only willing to go back to where March OPEC meets. Source: Motilal Oswal There is another problem: even if Saudis cut from 12mmb/d to 9mmb/d and Russia cuts by 5,00,000, that's 3.5mmb/d less in supply. Meanwhile, global demand is down by over 15Mbpd. In other words, the only way the oil market will rebalance is if both Saudi Arabia and Russia both stop pumping, even as shale continues to flood the world with US oil. Conclusion: Fade this rally! With much of the global economy at a standstill, the oil crisis is going to get worse in the weeks ahead. Given the size of the demand shock, the attempts to negotiate are “likely too little too late” for the oil market. On April 5, Aramco will publish its prices for May, which will offer a major signal regarding Riyadh’s intentions. Finally, it looks like neither Riyadh nor Moscow has any incentive to cut at this moment as the only winner will be US shale. On demand front, no national leader wants to end lock-down too soon and then have people die. Instead, the incentive is to be as aggressive as possible with the lock-down, strangle the economy. While international diplomacy does seem to be accelerating, a massive unilateral cut from Saudi Arabia, or even a bilateral cut with Russia, remains highly unlikely. Overall, we expect WTI prices to touch levels of $15 if the whole saga of deal falls apart and Coronavirus gets extended further. (The author is Vice President, Commodity & Currency Research, Motilal Oswal) Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Summarise this report in a few sentences.
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Navneet Damani crude prices surged by 30 percent on a single tweet from president. he said that Saudi Arabia and Russia would cut production by 10Mb-15Mbpd. he said that the world's oil industry is in a crisis and is not at the stage of an agreement. he said that the u.s. and the uk are the only oil producers that have significant production.
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Transcript Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Amritesh Malhan and here are the top headlines at this hour. · Rahul Bajaj steps down as Chairman of Bajaj Finance · EU nations clinch $2.1 trillion budget, $858 billion recovery fund after 4 days · Indian businesses resilient despite Covid-19 impact, say HSBC report · Axis Bank Q1 profit drops 19% to Rs 1,112 crore · HUL posts 7% profit growth in June quarter · Eveready may onboard Dabur family as strategic partner Let’s start with what really happened in the market today. Domestic stocks moved higher for the fifth session in a row, as positive results from early trials of a Covid-19 vaccine candidate, some good Q1 earnings and a EU deal for a massive stimulus plan for the coronavirus-throttled economies buoyed the market. RIL, HDFC, ICICI Bank, Kotak Mahindra Bank and Maruti contributed most of the gains, while Bajaj Finance and Bharti Airtel capped the upside. Overall, Sensex closed 511 points higher at 37,930, while Nifty settled 140 points up at 11,162. In the broader market, midcaps and smallcaps underperformed the largecaps. Sectorally, BSE Energy and Realty indices and Bankex ended the day in the green. Telecom, FMCG and Healthcare indices settled in the red. Among specific stocks, Bank of Maharashtra, Piramal Enterprises, Indian Oil Corporation advanced over 5 per cent each, while Sterlite, Vodafone Idea and Capri Global declined each over 5 per cent. Will the ongoing momentum sustain or will the bulls take a break now? Is the market showing sectoral rotation after the long rally? Does it make sense to stay put or should you take some profits off the table? We caught up with Ajit Mishra of Religare Broking to try and understand the market undercurrent. Welcome to the show, Mr Mishra What drove the stocks rally on Tuesday? Ajit Mishra Byte 1 The earnings season has started on a positive note. Where can we expect surprises? Ajit Mishra Byte 2 Rossari IPO is going to list this week. What are your expectations? Ajit Mishra Byte 3 Nifty breached its immediate resistance at 11,090, which was also its 20-month moving average. The index has formed a strong bullish candle on the daily chart with a healthy advance-to-decline ratio. Analysts, however, feel there are ample signals suggesting that the index may soon see a pause. We have with us Rohit Singre from LKP Securities to do the chart reading. How long can the bulls continue this run? Rohit Singre Byte 1 What strategy would you suggest for stock investors now? Rohit Singre Byte 2 Globally, other Asian markets ended higher. European markets traded in the green in early deals. US stock futures were up ahead of a string of major earnings, which can potentially offer fresh insights into how they are coping with the disruption. That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Good bye! Summarise this report in a few sentences.
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domestic stocks moved higher for the fifth session in a row. Sensex closed 511 points higher at 37,930, while Nifty settled 140 points up at 11,162. midcaps and smallcaps underperformed the largecaps. ajit Mishra of Religare Broking explains the market undercurrent. he also explains how to make money from investing.
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Elevate Your Tech Prowess with High-Value Skill Courses Offering College Course Website MIT MIT Technology Leadership and Innovation Visit IIT Delhi IITD Certificate Programme in Data Science & Machine Learning Visit Northwestern University Kellogg Post Graduate Certificate in Product Management Visit Bengaluru: NTT has rejigged its Asia Pacific leadership as the Japanese tech services major looks to implement new go-to-market strategy and drive faster growth. The company has elevated Kiran Bhagwanani , chief executive officer, India, as the senior vice president, Go-to-Market, Asia Pacific.Bhagwanani would lead the newly formed Go-to-Market business, after the merger among NTT subsidiaries into one company, with broad accountability for sales performance, solution practices and alliance partnership across Asia Pacific, said the company.“There are different pieces of this organisation. Sales function interacts with the clients, solutions team devices the right solutions and there are partners. We felt that bringing all these functions under one umbrella was important to make the approach cohesive,” said Bhagwanani, adding that he would step up to take the “responsibility” at Asia Pacific level.He would continue with India CEO role until the company appoints a leader for the role.NTT said it has created infrastructure to facilitate more than 300 enterprises to work from home during the lockdown across Asian markets due to Covid-19.“We are now gearing up to enter an exciting new era where we build a connected, and more sustainable tomorrow where technology is being used for the greater good. We are further fine tuning ourselves to align with the global objective of NTT Ltd . and accelerate our growth in the APAC region. Kiran has been chosen to lead the GTM functions of sales, solutions and alliances based on his exceptional background and proven track record in the organization,” said John Lombard , chief executive officer, NTT in Asia Pacific.Asia Pacific is one of the largest markets for the IT infrastructure services provider.This region for NTT generates roughly $3 billion in revenue and one of the fastest growing markets, and India would become a billion dollar business soon, said Sanchit Vir Gogia chief executive, Greyhound Research.“Need for companies to go digital is becoming more important. More organisations in India and Asia Pacific are seeking secure technology infrastructure and support for allowing work from home. Hence the company needed strong leaders in the region,” said Gogia.Other leaders of NTT who have been elevated in the region include Wong Wen-Ming, senior vice president, Global Business; and Jan Wuppermann , senior vice president, Strategy & Business Operations. Summarise this report in a few sentences.
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Kiran Bhagwanani, chief executive officer, India, is the senior vice president, go-to-Market, Asia Pacific. he will lead the newly formed Go-to-Market business, after the merger among NTT subsidiaries into one company. he will continue with India CEO role until the company appoints a leader for the role.
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India's fuel demand slipped further in August and posted its biggest monthly decline since April, as a surge in coronavirus infections continue to throttle economic activity and transportation, government data showed on Wednesday Coronavirus cases has soared past 4.3 million on Wednesday making India the second worst-hit country in the world. Sales of refined fuels, a proxy for oil demand, fell to 14.39 million tonnes in August, about 16% lower from a year earlier, its sixth consecutive year-on-year slide. It also fell 7.5% from the prior month, its biggest month-on-month decline since April, data from the Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Petroleum and Natural Gas showed. Consultancy Energy Aspects lowered their Q4 2020 Indian oil demand forecast by 0.43 million barrels-per-day, citing soaring infections and uncertainty over further restrictive measures, which will continue to limit the pace of recovery. Diesel consumption, a key parameter linked to economic growth and accounts for about 40% of overall refined fuel sales in India, fell by about 12% to 4.85 million tonnes last month from 5.51 million tonnes in July. On an annual basis, demand for diesel declined about 20.8%. Falling monthly diesel sales indicate a slowing economic and industrial activity. Sales of gasoline, or petrol, fell by 7.4% from a year earlier to 2.38 million tonnes, although it rose 5.3% from 2.26 million tonnes in July, as consumers preferred driving to using public transportation. "With increased travelling ahead of and over the festive holidays in October and November, we expect a further quarter on quarter increase in gasoline demand in Q4 20," Energy Aspects said. India's economy contracted 23.9% in the June-quarter as consumer spending, private investments and exports collapsed during the lockdown imposed in late March to curb the coronavirus outbreak. India's economy is projected to contract 11.8% on the year in the current fiscal year beginning from April, India Ratings and Research, a domestic arm of ratings agency Fitch, said on Tuesday. The economy is projected to contract 11.9% in the current quarter. Heavy floods in some Indian states, such as Gujarat, Assam and Odisha, also disrupted life and hit industrial and construction activity. August naphtha sales decreased by 24.6% to 1.07 million tonnes from a year earlier and was down 16.4% from July. Sales of bitumen, used for making roads, rose 39.1% on an annual basis, but was down about 18% month-on-month. Also read: India's petrol demand in August reaches 92% of year-ago period Also read: Goldman Sachs sees oil demand recovering to pre-COVID levels by 2022 Summarise this report in a few sentences.
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coronavirus cases have soared past 4.3 million on tuesday. india's fuel demand falls further in august. it is the second worst-hit country in the world. a surge in infections is limiting economic activity and transportation. the country's economy contracted 23.9% in the June-quarter. a flood in some states disrupted life and hit industrial and construction activity.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Our exposure to market risk consists of changes in interest rates from time to time and market risk arising from changes in foreign currency exchange rates that could impact our cash flows and earnings. As of June 30, 2019, we had outstanding $1,430.0 million of 2023 Unsecured Notes, $900.0 million of 2025 Unsecured Notes, $1,650.0 million of 2027 Unsecured Notes, a balance of $488.7 million on our Term Loan Facility due 2021, a balance of $1,269.3 million on our Term Loan Facility due 2024, $145.0 million on our Revolver and $182.2 million of capital lease obligations. As of June 30, 2019, we had $296.5 million available for borrowing under our Revolver, subject to certain conditions. Based on current market interest rates for debt of similar terms and average maturities and based on recent transactions, we estimate the fair value of our Notes to be $4,067.7 million as of June 30, 2019. Our 2023 Unsecured Notes, 2025 Unsecured Notes, and 2027 Unsecured Notes accrue interest at fixed rates of 6.00%, 6.375%, and 5.75% respectively. Both our Revolver and our Term Loan Facility accrue interest at floating rates subject to certain conditions. Our Term Loan Facility accrues interest at variable rates based upon the one month, three month or nine month LIBOR plus i) a spread of 2.0% on our $500.0 million tranche (which has a LIBOR floor of 0.0%) and ii) a spread of 2.25% on our B-2 Term Loan tranche (which has a LIBOR floor of 1.00%). Our Revolver accrues interest at variable rates based upon LIBOR plus a spread of 1.00% to 1.75% depending on our leverage ratio. As of June 30, 2019, the weighted average interest rates (including margin) on the Term Loan Facility and our Revolver were approximately 4.6% and 4.2%, respectively. A hypothetical increase in the applicable interest rate on our Term Loan Facility and Revolver of one percentage point would increase our annualized interest expense on the Term Loan Facility and Revolver by approximately 21% or $19.0 million, based on the applicable interest rate as of June 30, 2019. Historically, this impact was limited as a result of the applicable interest rate being below the minimum 1.0% LIBOR floor on our Term Loan Facility tranche that matures on January 19, 2024. We are exposed to the risk of changes in interest rates if it is necessary to seek additional funding to support the expansion of our business and to support acquisitions. The interest rate that we may be able to obtain on future debt financings will be dependent on market conditions. We have exposure to market risk arising from foreign currency exchange rates. During the year ended June 30, 2019, our foreign activities accounted for approximately 21% of our consolidated revenue. We monitor foreign markets and our commitments in such markets to assess currency and other risks. A one percent change in foreign exchange rates would change consolidated revenue by approximately $5.3 million for the year ended June 30, 2019. To date, we have not entered into any hedging arrangement designed to limit exposure to foreign currencies. To the extent our level of foreign activities is expected to increase, through further acquisition and/or organic growth, we may determine that such hedging arrangements would be appropriate and will consider such arrangements to minimize our exposure to foreign exchange risk. We do not have any material commodity price risk. ITEM 8. Summarise this report in a few sentences.
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This text discusses the market risk exposure of a company, which includes changes in interest rates and foreign currency exchange rates. The company has outstanding debt of $4,067.7 million as of June 30, 2019, with fixed and floating interest rates. A hypothetical one percentage point increase in the applicable interest rate on the company's Term Loan Facility and Revolver would increase their annualized interest expense by approximately 21% or $19.0 million. The company also has exposure to market risk arising from foreign currency exchange rates, with a one percent change in foreign exchange rates estimated to change consolidated revenue by approximately $5.3 million. The company does not have any material commodity price risk.
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Mumbai: Leading two- and three-wheeler maker TVS Motor Company’s profit during the March quarter nearly halved on account of exceptional expenses incurred towards COVID 19-related expenses and slowing business in the months leading to the pandemic.The company’s profit for the quarter was down 45% to Rs 74 crore, while revenue was down 21% to Rs 3,481 crore. The company also netted a sum of Rs 22 crore incurred towards discounts to liquidate BS-IV inventory against the revenue.Earnings before interest, tax, depreciation, and amortisation (EBITDA) were down 21% to Rs 245 crore. EBITDA margin remained constant at 7%, notwithstanding the one-time cost to liquidate BS-IV inventory.The company sold about 633,000 vehicles during the quarter including exports as against 907,000 units registered in the corresponding quarter last year – a 30% decline. For the complete fiscal sales were down 17% to 3.26 million units.“TVS Motor has delivered a decent performance in 4QFY20 despite tough business situations, as it benefited from the better product mix, higher export contribution, and favourable exchange rate,” said Mitul Shah, vice president for research, Reliance Securities.The company reported a 12% decline in profit for the complete fiscal to Rs 592 crore. Revenue was down 10% to Rs 16,423 crore. While EBITDA declined by 6% to Rs 1,346 crore, EBITDA margin improved by 32 basis points to 8.19%.Going forward, Shah expects TVS Motor to benefit from a revival in the rural economy given the company’s rural-focussed products. It also stands to gain from the purchase of two-wheelers by people apprehensive to use public transport facilities, he said. Summarise this report in a few sentences.
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the company's profit for the quarter was down 45% to Rs 74 crore. revenue was down 21% to Rs 3,481 crore. the company also netted a sum of Rs 22 crore towards discounts to liquidate BS-IV inventory against the revenue. the company sold about 633,000 vehicles during the quarter including exports as against 907,000 units registered in the corresponding quarter last year.
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Even as the pandemic gives a shiver to economies, markets, and businesses across the globe, Julius Baer Wealth Advisors (India) recently surprised many in the HR circle. It hired six relationship managers, two product specialists, and a head of wealth management, Himanshu Bhagat. For a wealth-management firm, it was an unusual time to hire — at least that’s what conventional wisdom would say. The market had crashed 40% on March 23 from its Summarise this report in a few sentences.
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the market had crashed 40% on march 23 from its peak on march 23. the market had crashed 40% on march 23 from its peak on march 23. the market had crashed 40% on march 23 from its peak on march 23. the market had crashed 40% on march 23 from its peak on march 23. the market had crashed 40% on march 23 from its peak on march 23.
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New Delhi : Markets regulator Sebi is likely to come out with stricter rules for liquid mutual funds following the liquidity squeeze triggered by the Infrastructure Leasing & Financial Services (IL&FS) default, senior officials said Monday. Among the measures, the regulator is considering a short lock-in period for investments in liquid funds and allowing segregation of papers in default and illiquid ones from the ones that are liquid. This would create two funds -- one with bad papers and another holding good papers, they added. Besides, Sebi is looking to make it mandatory for liquid funds to mark to market the value of all bonds that have maturity of 30 days or more. At present, fund houses need to consider the mark-to-market value of securities with a maturity of 60 days or more. These steps are expected to be discussed at the Sebi-appointed mutual fund (MF) advisory committee meeting on Monday. After that, the regulator may come out with a consultation paper before putting in place final regulations, the officials said. “The short lock-in period for investments in liquid funds may impact institutional investors," Quantum Mutual Fund Managing Director and CEO Jimmy Patel said adding that liquid funds are very sought after by institutional investors as there are no restrictions on entry or exit. Besides, institutional investors prefer to park their money in such funds due to higher liquidity of the schemes, he added. “A large part of audience for liquid funds is institutional investors like corporates, banks, etc. So, a change in the lock-in period impacts such institutional investors the most. At the same time, the retail investors could stand to gain as a result of more stable NAVs (net asset value)," said Aditya Bajaj, head --savings and investments -- at BankBazaar.com. “Large, unpredictable inflows and outflows from institutional investors impact liquid fund NAVs in a big way. If this can be arrested in some way, it could help stabilise the NAVs somewhat," he added. According to Bajaj, the move to introduce a lock-in period for liquid MFs is probably proposed to somewhat de-risk the industry from sudden knee-jerk reactions taken by investors in times of stress events. However, if done in isolation, it may not yield the expected results. There are other categories of funds like floater funds, which also need to be kept in mind while framing the rules for liquid fund lock-in as institutional investors may seek other avenues for investing if their primary requirement of daily liquidity is not met through mutual fund liquid funds, he added. The mutual fund industry, which has 42 strong members, manages assets to the tune of over ₹ 22 lakh crore. Of this, liquid funds have an AUM (asset under management) of ₹ 4.5 lakh crore. IL&FS and its subsidiaries have defaulted on several debt repayments recently due to liquidity crisis. The company as of March 2018 owed over ₹ 91,000 crore to banks and other creditors. On October 1, the government superseded the board of IL&FS and appointed a new board, with banker Uday Kotak as its executive chairman. (This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed) Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more. Topics Summarise this report in a few sentences.
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sebi is considering a short lock-in period for investments in liquid funds. it is also considering allowing segregation of papers in default and illiquid ones. the move is likely to de-risk the industry from sudden knee-jerk reactions. the regulator is also looking to make it mandatory for liquid funds to mark to market the value of all bonds.
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Transcript Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Amritesh Malhan and here are the top headlines at this hour. · China-US tensions rise as Beijing approves Hong Kong security bill · S&P says Indian economy will contract 5% in FY'21 · World Bank says lockdown to push 12m Indians into extreme poverty · Fitch says NPAs of India bank to soar by 600 bps in 2 years · IMD says monsoon to reach southern coast around June 1 · Govt seeks $520m from Cairn Oil & Gas for discrepancy in cost recovery Let’s start with what happened in the market today. Domestic stocks gained nearly 2% on Thursday as investors bought beaten-down banking stocks for a second day, while auto and metals gained on broader market optimism. Nifty50 rose 1.88% to 9,490, while the 30-share Sensex gained 1.88% to 32,200. Both the indices had risen over 3% on Wednesday. The HDFC twins, RIL, L&T and ICICI Bank led the charge, while ITC, SBI and Bharti Airtel ended being laggards. Smallcaps and midcaps continued to underperform their largecap peers. Sectorally, BSE Bankex and Auto, Capital Goods indices ended the day in the green. Others also closed higher. In the broader market, EID Parry, NCC, EIH, Nesco and Zee Entertainment gained up to 14 per cent, while Indiabulls Real Estate, Capri Global, SH Kelkar and Prism Johnson declined 2-5 per cent. Analysts said the market rally is being driven by short covering as investor started to bet on a continued resumption of economic activities, in spite of the spike in Covid infections. Meanwhile, a flareup in tensions between China and the US has already caused jitters in some markets. Under the circumstances, can the rally on Dalal Street sustain? We caught up with Vinod Nair of Geojit Financial Services to try and understand the market dynamics. Welcome to the show, Mr Nair Can you tell us what have been the key drivers of this market rally? Vinod Nair Byte 1 Do you think the bulls will stay on for some time on Dalal Street? Vinod Nair Byte 2 Which are the stocks you are watching keenly in this market? Vinod Nair Byte 3 On technical charts, Nifty formed a bullish candle on the daily scale as it closed just shy of the 9,500-mark. Analysts said momentum indicator Stochastic is now in bullish mode, which supports the upside momentum. Nifty is sustaining above its 20-day and 50-day SMAs, adding to the optimism, We have with us Amit Trivedi of YES Securities to do the chart reading. What are the technical charts telling us? Amit Trivedi Byte 1 What are your observations on Nifty open interest levels? Amit Trivedi Byte 2 Give us you near-term outlook for Nifty. Amit Trivedi Byte 3 Globally, other Asian markets ended mixed. European markets traded in the green in early deals. US stock futures traded mixed in early pre-market trade as Beijing approved the contentious Hong Kong security bill that the US has been opposing. That’s all for now. Do check out ETMarkets.com for all the news, market analysis, investment strategies and dozens of stock recommendations. Enjoy your evening. Good bye. Summarise this report in a few sentences.
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domestic stocks gained nearly 2% on Thursday as investors bought beaten-down banking stocks for a second day. the indices had risen over 3% on Wednesday. smallcaps and midcaps continued to underperform their largecap peers. a flareup in tensions between china and the us has already caused jitters in some markets.
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Mumbai: Equity benchmarks slipped lower on Thursday in sync with weak global equities as the sentiment weakened after US Fed’s minutes depicted a grim oulook for the economy.The Fed’s minutes released on Wednesday raised doubts over US economic recovery, and signaled that the swift labour market rebound seen in May and June may have slowed, Reuters reported.BSE’s Sensex dropped 1 per cent to 38,220, while NSE’s Nifty50 shed 0.8 per cent to 11,312.“Indian stocks were hurt by the US Fed ’s cautious view of the economy, US tensions with China and new clusters of coronavirus infections,” said Narendra Solanki, Head of Equity Research at Anand Rathi Shares & Stock Brokers“During the afternoon session, the markets briefly attempted to bounce back from day lows, but the strength did not sustain as profit booking emerged,” he said.Shares of electricity distribution and generation companies outperformed the otherwise dull market with BSE Power and BSE Utilities indices rising 4.1 per cent and 4.2 per cent respectively. The government on Wednesday extended the power-sector liquidity infusion package and relaxed working capital lending limits by Power Finance Corp and REC for distribution companies.State-run NTPC was the top Sensex gainer, as it rose 6.9 per cent to Rs 101.15. PowerGrid climbed 2.11 per cent to Rs 181.10. Adani Transmission jumped 10 per cent to Rs 270.10. Tata Power advanced 8.4 per cent to Rs 61.50BSE Midcap and Smallcap indices bucked the broader market trend and rose 0.9 per cent and 0.7 per cent, as investors looked for value in these packs amid concerns that the blue-chip stocks may have turned expensive. Among the midcaps, Varroc Engineering rose 17.8 per cent to Rs 320.10, while NHPC climbed 12.17 per cent to Rs 23.50. In the smallcap pack, Apcotex Industries and I G Petrochemicals jumped 20 per cent each to Rs 173.25 and Rs 273.25 respectively.Aarti Drugs approved bonus share issue in 3:1 ratio, sending the drugs and chemical maker’s shares soaring as much as 20 per cent to an all-time high of Rs 2,892.75. The company’s shares have jumped 400 per cent in the year so far.Gold loan company Muthoot Finance dropped 5.4 per cent to Rs 1,187.90 despite robust June quarter earnings as brokerages expressed concerns that the valuations may have turned expensive. Muthoot Finance reported a 59 per cent rise in net profit at Rs 841 crore for June quarter even as disbursements slowed due to Covid lockdown.IT firm GSS Infotech jumped 16.9 per cent to Rs 27.05., after promoter Rao Marepally Raghunadha Rao lapped up some more shares in the company, while investors including Nomura Singapore and Elara India Opportunities Fund pared their stake.A total of 176 stocks recorded 52-week highs on the BSE. They included 3i Infotech, Aarti Drugs, IG Petrochemicals, Jubilant Foodworks, Jindal Steel & Power, Neogen Chemicals, PTC Industries, Tata Coffee and Tata Communications, among others.As many as 406 stocks hit their upper limit on the BSE. They included Adani Transmission, Repco Home Finance, Arvind Fashions, Future Lifestyle Fashions, Future Consumer and Lemon Tree Hotels, among others.A total of 73 stocks sent out buy signals on BSE, as they crossed above the signal line on the MACD indicator. They included HDFC Bank, Future Consumer, Indian Oil Corp, GSS Infotech, Bank of Baroda and Mahanagar Gas, among others.Nagaraj Shetti, technical & derivatives analyst, HDFC Securities said while the overall uptrend status remains intact for Nifty, the short-term trend is slightly negative. “There is a possibility of minor weakness in the next one or two sessions with rangebound action. There is a higher chances of a bounce from the lower support at 11,200 level (Nifty) in the short term,” he said. Summarise this report in a few sentences.
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Sensex drops 1% to 38,220, while NSE’s Nifty50 shed 0.8 per cent to 11,312. shares of electricity distribution and generation companies outperformed the otherwise dull market. NTPC was the top Sensex gainer, as it rose 6.9 per cent to Rs 101.15. NHPC climbed 12.17 per cent to Rs 23.50.
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