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FCA India has restarted manufacturing the Compass at its plant in Maharashtra along with engines for Tata Motors while the workforce must follow new and strict safety guidelines to protect against the coronavirus. FIAPL has announced that its manufacturing operations has been restarted following the relaxation to the lockdown guidelines in the region. At its Ranjangaon facility, Fiat India Automobiles Pvt. Ltd. (FIAPL), a joint venture between Fiat Chrysler Automobiles (FCA) India with Tata Motors Ltd. (TML) has begun manufacturing engines and passenger cars. Ravi Gogia – President, FIAPL said, “We have restarted operations with a lean workforce. Our absolute priority is the protection of employees, ensuring we provide them with a work environment that maintains the highest standards of safety, health and hygiene. Our responsibility is to also educate them on a regimen they should follow after work hours so that their families are also protected. Gogia also mentioned that the manufacturer has been able to activate its supply chain and expects gradual step-up with assured supplies. He added; “We hope to reach a regular production schedule as the value chain becomes seamless and it’s safe to do so,” FIAPL has developed a comprehensive program of safety measures that its 3,000+ direct and indirect employees must adhere to ensure health and safety of themselves and their families from COVID-19. Employees will be required to temperature check before entering and exiting the facility, while also boarding and disembarking transport. They will also be subjected to a self-assessment questionnaire which must be submitted digitally. The FIAPL facility Ranjangoan, Maharashtra caters to the manufacturing of the Jeep Compass for the Indian market, along with the right-hand drive export markets of the SUV globally. It is also the facility that manufactured engines for Tata Motors and caters to the imported luxury products from Maserati. The workforce at the facility will be required to maintaining physical distance, while the facility will be regularly disinfected and sanitised. FIAPL will also be providing effective medical support inside and outside the facility to ensure the mandatory use of PPE kits in the plant. The facility will also feature new signage encouraging and educating on health and safety with a dedicated ambulance equipped with a ventilator and trained drivers who have been appointed. A 50-member task force of employee volunteers has even assigned to supervise the adherence to the strict precautionary processes set by the plant’s management to safeguard its workforce inside the facility and also after working hours. Summarise this report in a few sentences.
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FIAPL has restarted manufacturing at its Ranjangoan plant. the facility caters to the manufacturing of the Jeep Compass. the workforce must follow new and strict safety guidelines to protect against the coronavirus. the facility will be regularly disinfected and sanitised. the facility will also feature new signage encouraging and educating on health and safety.
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The domestic equity market succumbed to severe global selloff on Friday, as it opened gap down and ended with a much bigger cut. After opening on a negative note, NSE Nifty made no attempt to recover, and even small rebounds were sold into. The headline index finally settled with a loss of 431.55 points or 3.71 per cent at 11,201.75.Monday’s session is likely to see a volatile start, as there are mild chances of Dalal Street attempting to stabilise with the US markets on Friday coming off considerably from their intraday lows.The volatility index, India VIX, which spiked 30.79 per cent to 23.24 on Friday, is likely cool off as well. However, it will be some time before the market establishes a firm bottom.Given the nature of panic reaction in the global markets, it is obvious that key levels will get defied, and we will see the market not respecting important technical setups. However, in the event of a pullback, the 11,250 and 11,295 levels will act as resistance.The Relative Strength Index (RSI) on the daily chart was at 24.44 and marked a fresh 14-period low, which is bearish. The indicator did not show any divergence against the price, and traded in the oversold territory.The daily MACD was bearish and traded above its signal line. A falling window pattern was formed on the charts. This formation is formed out of a gap and usually implies the continuation of a downtrend.As pattern analysis, the market has not only broken down from a broadening formation, it has also moved below all its moving averages. At present, the index is showing signs of some exhaustion in the selling pressure, but any overnight negative newsflow can make the situation worse despite the current technical setup.All in all, as the current selloff is in part of the global reaction to coronavirus pandemic fears, we would point out that any attempt to create fresh shorts at the present levels would be highly risky. Nifty has given up over 1,200 points from its highest level and trades in the oversold territory.It is very much possible that as part of global risk-off trade, the market may continue to remain weak and stay oversold for some time. Attempting to mark a bottom in the present setup is equivalent to catching a falling knife. However, taking a broader look at technical setup, even if a mild attempt to find a bottom is made, it can result in a severe short-trap.We would recommend traders to stay away from creating fresh positions and wait until signs of stability emerge. A highly cautious view is advised for the day.(Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at [email protected]) Summarise this report in a few sentences.
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domestic equity market succumbed to severe global selloff on friday. headline index finally settled with a loss of 431.55 points or 3.71 per cent. volatility index, india VIX, which spiked 30.79 per cent to 23.24 on friday, is likely cool off. but it will be some time before the market establishes a firm bottom.
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New Delhi: As the Covid-19 pandemic tests the patience and hope of a 1.3-billion strong country asked to stay at home, Adani Group chairman Gautam Adani penned an article highlighting how the disease helped people rediscover hope, goodness and love for each other.“However [sic.] alarming the post-Coronavirus world might seem to appear, it does not pull me down. Instead, by looking around I get great hope and confidence to bounce back,” he said in an article published on professional networking website LinkedIn on Wednesday.Adani mentioned the stories of Minal Bhonsale, the virologist who headed the project at Pune-based MyLab Discovery Solutions that developed the first indigenous Coronovirus testing kits in India and Naveen MS, a civil service aspirant who took up the responsibility of creating awareness and dispelling myths on Coronavirus among rural communities in Karnataka.“Hundreds of such incredible stories that demonstrate resilience, hope, and power of the human spirit are unfolding around us every day,” he said.He also told the story of a team of engineers at Adani Port in Vizag that devised a sanitised water shower for all to use within four hours.“You need not look too far to get inspired,” he said, talking about people who were collecting essentials for the underprivileged during the lockdown. “These are common people leading humble lives but what makes them extraordinary is their intent to care for others.”Domestic helps, daily wage earners and scores of people who earned their living by doing odd-jobs were being looked after by not just the government, large corporations or charitable organisations, but by common people living around them, he wrote adding that there are virtual groups of animal lovers who were feeding strays and ensuring that they find safe shelter.“I don’t think this collective goodness and love for each other has erupted suddenly. It was always there within us. The COVID19 crisis has only presented an opportunity for us to reflect upon this feeling of compassion and worked as a trigger to unite people.” Summarise this report in a few sentences.
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adani chairman penned an article highlighting how the disease helped people rediscover hope. he said: "by looking around I get great hope and confidence to bounce back" he mentioned the stories of minal Bhonsale, who developed the first indigenous coronovirus testing kits in india. he also mentioned a team of engineers at Adani Port in Vizag that devised a sanitised water shower for all to use within four hours.
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New Delhi: Suzuki Motor Corp., the parent of India’s largest carmaker, aims to produce as many as 35,000 electric cars annually in India starting 2020-21, when it rolls out the first of these cars in the country, two people familiar with the matter said. “Suzuki will venture into the electric vehicle market quite late compared to some of its competitors. That’s why they wanted to make sure the foray into electric should be sustainable and gradually gain volume. The battery plant was crucial and now the management has internally decided on 30,000-35,000 units per annum from FY21," said one of the two people, requesting anonymity. A spokesperson for Maruti Suzuki declined to “give any guidance". While rivals such as Mahindra and Mahindra Ltd and Tata Motors Ltd are already manufacturing electric vehicles by sourcing half of the components from overseas vendors, Suzuki plans to set up the full ecosystem, starting with a lithium-ion battery plant, before unit Maruti begins selling the vehicles in India. If all goes as planned, Maruti may be the first carmaker in India to make electric cars with locally sourced components. “As of now, the target is to get approximately 2% of sales in 2021 but the infrastructure that Suzuki is creating for electric vehicles will help them hit the ground running. None of the other manufacturers as of now have any such plans," said the first person cited above. Suzuki will source technology from Toyota Motor Corp. and Denso Corp. for the development of a compact and ultra high-efficiency powertrain for India and other global markets. Suzuki also has a tripartite joint venture with Denso and Toshiba to set up a lithium-ion battery factory in Gujarat. The EV market in India is still small, numbering 25,000 units at the end of 2016-17. Of this, nearly 92% were two-wheelers. Electric cars and four-wheelers accounted for less than 8% of the total sales, according to Society of Manufacturers of Electric Vehicles. Mahindra’s plans are more ambitious. It plans to produce 60,000 electric vehicles annually starting 2020 as it seeks to benefit from its first-mover advantage. “Our electric vehicles story is poised to take off," said Pawan Goenka, M&M managing director, in an interview to Mint in February. In a January interview, Maruti Suzuki managing director Kenichi Ayukawa said his firm will also establish charging stations in some areas in collaboration with dealers and business partners. According to the people cited above, manufacturing of Suzuki’s vehicles are likely to happen in Gujarat. 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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Suzuki plans to produce 35,000 electric cars annually in India starting 2020-21. rivals such as Mahindra and Mahindra and Tata Motors are already manufacturing electric vehicles by sourcing half of the components from overseas vendors. if all goes as planned, maruti may be the first carmaker in india to make electric cars with locally sourced components. the EV market in india is still small, numbering 25,000 units at the end of 2016-17.
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The coronavirus-induced lockdown has led to worsening financing conditions for non-banking financial companies (NBFCs), especially those that lower-rated and private sector ones. As per an estimate, around Rs 1.08 lakh crore worth of borrowings of NBFCs will mature in the next three months, which will put a lot of strain on them. "There are near-term scheduled redemptions of commercial papers and corporate bonds issued by NBFCs. To a certain extent, these could be bridged through increased bank borrowing or group support by some NBFCs. However, given the current financing conditions and developments in the mutual fund sector, the possibility of liquidity pressures remaining elevated for some of these NBFCs, especially those with high dependencies on market borrowing, cannot be ruled out," an RBI study has stated. Regulatory or liquidity measures taken by the Reserve Bank have had a salutary impact on financial markets, it said, adding that stress was still visible in certain areas. The emerging developments indicate the need for policy interventions, which go beyond liquidity related measures to credit-related ones, it maintained. The RBI study also showed that there was a need for ensuring the flow of credit to NBFCs with "concrete credit backstop" to address the risk aversion in the system. It believed the recent government measures for NBFCs, such as the special liquidity scheme and the partial credit guarantee scheme were expected to improve the market financing conditions for the sector. The NBFC sector is already struggling with liquidity issues since 2018. The IL&FS related developments in 2018 brought the sector under greater market discipline and the market borrowing costs increased for entities, especially those with perceived asset-liability mismatch issues or asset quality concerns. Now the recent COVID-19 related disruptions and the developments in the mutual fund sector, which have emerged as one of the major lenders to the NBFC sector, have further impacted the market their financing conditions, it said. The study also assessed the households' liabilities and found that they peaked in the March quarter of FY20, indicating a rise in the hardships owing to the coronavirus crisis. "Households' gross financial liabilities turned negative in Q12019-20 owing mainly to a contraction in borrowings from commercial banks, but picked up thereafter and peaked in Q42019-20, reflecting apart from the seasonal uptick, higher borrowings induced by COVID-19 related hardships" showed the RBI study. Also read: Coronavirus impact: Households' borrowings peaked in March quarter, says RBI Summarise this report in a few sentences.
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coronavirus lockdown has worsened financing conditions for non-banking financial companies. around Rs 1.08 lakh crore worth of borrowings of NBFCs will mature in the next three months. Regulatory or liquidity measures taken by the Reserve Bank have had a salutary impact on financial markets. a study assessed the households' liabilities and found that they peaked in the March quarter of FY20.
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Online recruitment activity registered 12 per cent increase in March with demand for finance and healthcare professionals witnessing a significant uptrend, says a report.The Monster Employment Index India stood at 292 in March as compared to 261 in the year-ago month."The economic reforms by the government seem to have started impacting the economy in a positive manner and the online recruitment activity around key sectors such as production and manufacturing can possibly be attributed to it," said Abhijeet Mukherjee, CEO, Monster.com- APAC & Gulf.The report noted that finance and accounts, and healthcare professionals saw highest growth year-on-year at 32 per cent and 31 per cent, respectively."The demand for professionals in finance & accounts can also be a resultant of the massive opportunity created by GST reforms for people with know-how of the new tax regime," Mukherjee added.He further said the digital revolution is mirroring the substantial growth across sectors, thereby escalating opportunities and reshaping the fundamental nature of work and iterating the constant need to upskill.During the reported month, e-recruitment activity exceeded the year-ago level in 11 of the 13 cities monitored by the Index with Kolkata topping the chart (up 33 per cent ) followed by Chandigarh (up 29 per cent.Delhi-NCR and Bengaluru witnessed a decline, the report said. Summarise this report in a few sentences.
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online recruitment activity registered 12 per cent increase in march. demand for finance and healthcare professionals witnessing a significant uptrend. the report noted that finance and accounts, and healthcare professionals saw highest growth year-on-year at 32 per cent and 31 per cent, respectively. e-recruitment activity exceeded the year-ago level in 11 of the 13 cities monitored by the Index.
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It was a massacre on Dalal Street on Thursday as domestic benchmark indices, after pausing the downward trend on the previous day, resumed their fall. S&P BSE Sensex tanked 2,919 points or 8.18 per cent while the border Nifty 50 index tumbled down below the 9,600 points falling 868 points or 8.30 per cent lower. “In line with the bearish trend in global markets, Indian markets witnessed a selloff across sectors along with panic selling in the broader markets. The selling further intensified in the afternoon session as cues in western markets continued to remain weak as news of further restrictions in businesses and shutdown due to virus scare was reported,” Narendra Solanki, Head Fundamental Research-Investment Services, Anand Rathi Shares and Stock Brokers said. Sensex records its worst fall ever: S&P BSE sensex fell by as much as 3,204 points or 8.98 per cent and at the end of the day’s trading settled slightly higher at a loss of 2,919 points, recording its worst ever fall. All of the 30-stocks that constitute the index traded in the red, the entire day. SBI was the biggest loser on S&P BSE Sensex, falling 13.23 per cent during the day. Coronavirus now officially a pandemic: The World Health Organisation (WHO) declared that the Coronavirus is a pandemic on Wednesday and with that the already scared investors across the globe stepped-up the sell-off. “With the WHO declaring COVID-19 a Pandemic and with the delay in the US stimulus plan, the DOW was punished hence our markets as expected opened gap down. Our Markets witnessed frenzied selling throughout the day as almost everything was sold into with the VIX reaching alarming levels,” said S Ranganathan, Head of Research at LKP Securities. Nifty PSU Bank ends lowest among sectoral indices: The Nifty PSU Bank index tanked 13.15 per cent, most among all sectoral indices on NSE. The slump was aided by Canara Bank, which was down by almost 16 per cent. “The broader markets, BSE-Midcap and BSE-Smallcap too ended in-line with the benchmark. All the sectoral indices witnessed heavy selling pressure with Banks, Oil & Gas and Metals being the top losers,” said Ajit Mishra, VP – Research, Religare Broking Ltd. Investors lost Rs 11 lakh crore: According to the market capitalisation of the BSE-listed firms, investors lost Rs 11 lakh crore amidst the butchery on Dalal Street on Thursday. The market capitalisation of all BSE listed firms stood at Rs 137 lakh crore at the end of trading on Wednesday and the same tanked to Rs Rs 125 lakh crore when markets closed on Thursday. Summarise this report in a few sentences.
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Sensex plunged by as much as 3,204 points or 8.98 per cent. border Nifty 50 index tumbled 868 points or 8.30 per cent lower. broader markets also saw sell-offs and panic selling. 'our Markets witnessed frenzied selling throughout the day', says analyst. 'the broader markets, BSE-Midcap and BSE-Smallcap too ended in-line with the benchmark.'
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NEW DELHI: Inbound tourists to India crossed the 10 million threshold for the first time last year but overseas inflow of tourists into the country for leisure travel looks muted this year. The Indian Association of Tour Operators (IATO), the apex body for tour operators and standalone travel agents and tour operators said business has been static year on year for tour operators catering to overseas tourists this year on account of GST and the lack of input credit, safety perceptions concerning India, the rise in e visa fee in July, state centric regulations and other factors. Standalone tour operators and travel agents that ET spoke to said business has declined or stayed static compared to last year.“Business for our operators has been static year on year and GST is the main factor. There is no input tax credit available for tour operators. There are also other factors like the seat capacity factor and expensive air seats. Flights from UK to Thailand are cheaper than UK to India and we are not competitive with international markets. We need to control these areas that are cost prohibitive. We are discussing all these matters with the ministry of tourism,” said Pronob Sarkar, president, IATO.Rajeev Kohli, joint managing director of Creative Travel, which specialises in inbound travel said legacy business for traditional source markets is down for his company. “We have ventured into new markets and that business has grown but our legacy business is down for the traditional source markets. Tour operators are not allowed to take input credit on the 5% GST tax while we are paying tax on hotels, transport etc. The end supplier should be allowed to take credit for the GST paid. This is not a viable proposition,” he added.The CAPA India Inbound Tourism report released this week stated that while total foreign visitor arrivals increased by 15.9% year on year in 2017, if visitors from Bangladesh were excluded (the vast majority of whom do not come from leisure) the growth was only 8%. India lost market share in five of the 10 source markets over the past three years particularly in the UK, France and Sri Lanka as per the report. CAPA estimates that only 2.4-2.6% million people visit India each year for the purpose of a holiday which is far less compared to a city state like Singapore or the island destination Bali or Thailand at 31 million.R Parthiban, director at Delhi headquartered Swagatam Tours which has offices in Mumbai, Chennai and Bengaluru said business for his company which caters to visitors from markets like the US and UK has been static because of many factors. “The government takes one step forward and two steps backwards. Without any intimation to the tour operators they have increased the visa fee to $ 80 from $ 50 in July this year. This is becoming a burden. The structured tourism promotions are not there,” he said.“From January onwards they have closed down 7-8 tourism offices. For the entire Europe, they have one office in Germany. They have said there will be more aggressive promotions and agencies involved. But, they should ensure other steps are ready before closing the existing channels,” he added.Akshay Kumar, CEO of Mercury Himalayan Explorations, which specialises in adventure travel for tourists in markets like the UK said business from markets like Australia has registered a dip while the UK market has been muted. “The multiplicity of taxes within tourism for transport, hotels and restaurants is complicated. The smaller operators are feeling the hit as they are finding it difficult to comply under the regime. There have also been state centric bans and regulations around adventure travel.” Summarise this report in a few sentences.
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inbound tourists to india crossed the 10 million threshold for the first time last year. but overseas inflow of tourists into the country for leisure travel looks muted. business for tour operators has been static year on year. india lost market share in five of the 10 source markets over the past three years. e visa fee in July has also impacted business. a spokesman for a tour operator said business has declined or stayed static.
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Thugs of Hindostan After having a record opening of a little over Rs 50 crore, Thugs of Hindostan has fallen in terms of business numbers. The Diwali release saw a 44.33 percent fall in collections the next day, followed by a 19.47 percent drop on Saturday and 24.18 percent on Sunday. Monday and Tuesday were no better as collections again fell by 68.12 percent and 20.91 percent, respectively. “The film has witnessed a drastic fall. Metros and multiplexes are down to shockingly low levels, while mass belt and single screens are falling rapidly. Thugs of Hindostan is undoubtedly the shocker of the year and moviegoers are extremely ruthless and in no mood to splurge on movies they hear are substandard. In this era of social media, word-of-mouth spreads faster than fire and can make or break a movie within hours,” said film trade analyst Taran Adarsh. Coming to numbers, while the weekend saw the Vijay Krishna Acharya drama make close to Rs 117 crore, the film, according to Bollywood trade numbers platform, BoxOfficeIndia, made Rs 5.25 crore on Monday. The collections further fell on Tuesday to Rs 4.25 crore taking the total collection of the film to about Rs 127 crore. Experts are looking at not more than Rs 130 crore-Rs 135 crore as lifetime collections of the film. Unfortunately, the fate of the film has been no different in international markers. “Thugs of Hindostan has under-performed in international markets with total overseas collection from the first weekend being Rs 46.67 crore,” said Adarsh. The international total is consolidation of numbers clocked in US, Canada, Middle East, UK and some other smaller countries. The highest numbers came from the Gulf countries that stand at Rs 16.25 crore approximately. Grapevine had it that a deal was signed between Aamir Khan and YRF under which 70 per cent of the profits made from the film would go to the actor. Evidently, Khan’s dream of a handsome cheque has crashed with the Rs 300 crore film not even standing a chance to make Rs 150 crore at the box office during its run. Summarise this report in a few sentences.
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the film had a record opening of a little over Rs 50 crore. collections fell by 44.33 percent the next day. experts are looking at not more than Rs 130 crore-Rs 135 crore as lifetime collections of the film. a deal was signed between aamir Khan and YRF under which 70 per cent of the profits made from the film would go to the actor.
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Asian stock markets made a cautious start on Thursday following two days of rallies, as investors await the passage and details of a $2 trillion stimulus package in the United States to combat the economic fallout from the coronavirus. Senate leaders hope to vote on the plan later on Wednesday in Washington, but it still faces criticism. The bill includes a $500 billion fund to help hard-hit industries and a comparable amount for payments up to $3,000 to millions of U.S. families. It cannot come soon enough, with potentially enormous weekly U.S. initial jobless claims to appear in data due at 1230 GMT. Australia's S&P/ASX 200 index rose 1.5% in early trade - its third positive start in as many sessions, but also its most muted. Japan's Nikkei fell 2.2%. Hong Kong futures were 1% higher and China A50 futures were up 0.2%. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3%. "There has been so much stimulus thrown at this," said Jun Bei Liu, portfolio manager at Tribeca Investment Partners in Sydney. "But the positivity related to it is really just sentiment," she said, adding that investors were largely flying blind with so many companies withdrawing earnings guidance. Jobless figures may offer a "reality check," she said. In perhaps an early sign of the fragile mood, the risk-sensitive Australian dollar dropped 1% and the safe-haven Japanese yen rose in morning trade. U.S. stock futures rose 1%, following the first back-to-back session rises on Wall Street in over a month. The Dow Jones Industrial Average rose 2.4% and the S&P 500 1.2%, while the Nasdaq Composite dropped half a percent following a Nikkei report that Apple was weighing a delay in the launch of its 5G iPhone. JOBLESS CLAIMS TO TEST BOUNCE The money at stake in the stimulus bill amounts to nearly half of the $4.7 trillion the U.S. government spends annually. But it also comes against a backdrop of bad news as the coronavirus spreads and as jobless claims are set to soar, with both expected to test the nascent bounce in markets this week. California Governor Gavin Newsom told reporters on Wednesday that a million Californians had already applied for jobless benefits this month - a number that knocked stocks from session highs and has analysts bracing for worse to come. RBC Capital Markets economists had expected a national figure over 1 million in Thursday's data, but say "it is now poised to be many multiples of that," as reduced hours across the country drive deep layoffs. "Something in the 5-10 million range for initial jobless claims is quite likely," they wrote in a note. That compares to a 695,000 peak in 1982. Forecasts in a Reuters poll range from a minimum of 250,000 initial claims, all the way up to 4 million. Trepidation seemed to put a halt on the U.S. dollar's recent softness in currency markets, with the dollar ahead 1% against the Antipodean currencies and up 0.6% against the pound. It slipped 0.3% to 110.85 yen. U.S. crude slipped 1.5% to $24.11 per barrel and gold steadied at $1,608.14 per ounce. Summarise this report in a few sentences.
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the australian dollar drops 1% and the yen drops 1%. the stimulus bill includes a $500 billion fund to help hard-hit industries. it also includes a comparable amount for payments up to $3,000 to millions of families. the bill also includes a $500 billion fund to help hard-hit industries. a senate bill to pass the bill is expected to be approved by the end of the week.
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By Aparaajita Pandey Venezuela has been caught in a downward spiral for the better part of the last decade. An economy that suffers from complete devastation, people who suffer from acute shortages of food and other essentials, an army and political machinery that has been proven as corrupt and decrepit, sanctions that target the only viable resource Venezuela has, the mass exodus of people, a President who refuses to step down, and now a saviour who has failed; it is safe to say Venezuela has been hitting rock bottom for a long time. Venezuela was supposed to be a template for socialist success; however its complete reliance on its crude oil and gas resources coupled with erroneous administrative policies led to a system that was on the brink of a disaster. The decline in crude oil prices soon started a chain reaction in Venezuela that led to one catastrophe after another. The world has watched as the country has found itself a politic-socio-economic decline. Amidst these emerged Juan Gerardo Guaido Marquez. Often described as a ‘charismatic 35 years old politician’; Guaido was an engineer who soon discovered his passion for politics and started his career in the field as a political activist. Most of the western media saw in Guaido salvation for Venezuela. The man was relatively unknown and his rise to popularity could easily be termed as overnight. As the Venezuelan opposition took control of the National Assembly, Juan Guaido was declared the interim president by the opposition. Such a declaration carried no meaning for Maduro or for the Venezuelans who continue to recognise Maduro as the President. The story of Juan Guaido started off as it does for many politicians who are supported by other world leaders but has not had the same trajectory as it has had for many. The template for regime change has not worked in Venezuela even though the degeneration of the country and the suffering of its people is unequivocal. Juan Guaido started becoming an important name in Venezuelan politics soon after he gained the American’s favour. Donald Trump saw in Guaido a proverbial ‘man for the job’ when it came to regime change in Venezuela. The support and recognition from the Americans soon developed into support and recognition from the British and then grew exponentially. Presently including the US and UK, fifty other nations have recognised Guaido as the acting President of Venezuela. At the beginning of 2019, Guaido was supposed to be the next leader of the country who would rip apart its socialist foundations, banish Maduro into oblivion and rebuild the country. As the world sits right in the middle of 2020, we see Guaido as a failed man who is steadily losing followers, support, and opportunities of meetings with Trump. The process of regime change has certain discernible characteristics- a charismatic leader, a rapid climb to popularity among the people, a possible coup, a victorious election and finally a new regime. One can check most of the boxes in the Venezuelan case; however they failed to have the desired effect in the end. There have been some overlooked facets of Venezuelan politics and Latin American politics in general when it comes to Juan Guaido. The western media had found their golden boy in Juan Guadio when it came to Venezuela however, their perception was based on the faith that the world leaders had so generously showered upon him. Venezuela’s future seemed to be tied to Guaido, however, his perception among the people of Venezuela was completely overlooked. It is true that he had a reasonable share of supporters among the populace but he could never win the trust of a people who are deeply suspicious of the Americans and those with American support. Guaido was not seen as a welcome option for the opposition, people were unfamiliar with his work and he was not perceived as a serious politician who could become the President. The consequence of this paucity of faith in Guaido led to a limited rise in his popularity among the people of Venezuela and a for a politician trying to replace a man like Maduro, half-hearted support of the people is just not enough. The recent coup in Venezuela was a failure of abysmal proportions; it was termed as ‘ridiculous’ a term not often used to describe coups against tyrant Presidents. The coup based itself on two-pronged approach; the capture of the port – town of Maracaibo, and the capture of President Maduro as well as his immediate transfer to the US where he was supposed to be tried for his crimes of Narco- Trafficking. The coup failed on both accounts miserably. The failed coup not only cemented the perception of Maduro’s power among people, it also led to the showcasing of the immense military support that Maduro still enjoys. There was also, a gross underestimation of the great power politics that could be played on the Venezuelan soil. The Russian support for Venezuelan oil and its tactics to avoid sanctions have given Maduro much needed support to continue as the President. Finally as Guaido was not allowed in the Assembly and Maduro supported Luis Parra was elected as the speaker of the National Assembly in the recent elections, the possibility of change in the Venezuelan regime has started to look unlikely. The international support that Guaido once enjoyed has also been waning for sometime now, with Trump refusing a meeting with him previously in the Davos summit and recently in the past week, it seems like the future for Guaido is uncertain. It is also symptomatic that while Maduro may have some more time left as the President, his opposition would have to emerge from within the Venezuela, independent of external support. (The author is an Asst. Professor and Amity University, Noida and Doctoral Candidate at Centre for Canadian, US, and Latin American Studies at Jawaharlal Nehru University. Views are personal.) Summarise this report in a few sentences.
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the decline in crude oil prices soon started a chain reaction in Venezuela. most of the western media saw in Guaido salvation for the country. he was relatively unknown and his rise to popularity could easily be termed as overnight. he was declared the interim president by the opposition. but he has not had the same trajectory as it has had for many.
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The government's Rs 20 lakh crore coronavirus relief package is not expected to have an immediate impact on the economy, analysts say, adding that the stock market is likely to react accordingly only when the lockdown opens. In fact, more correction may be seen in the market over the period owing to job losses, consumption-dip and longer economic recovery. "The 20 lakh crore stimulus package announced by the Government will certainly not have an immediate impact on the economy but will have significant long-term repercussions since the stimulus firepower focused towards the supply side issues but indicated a slight disregard to cater the demand side of economy," Umesh Mehta, Head of Research, Samco Securities, told BusinessToday.In. The benchmark equity indices - Sensex and Nifty - have corrected almost 6 per cent each since the package was announced by Prime Minister Narendra Modi on May 12. "We believe the markets are pricing in the fiscal impact of the recently announced stimulus package. However, if the infection continues to increase then the government would have to impose stricter lockdown. Therefore, the faster we can contain the spread of the virus and ease the lockdown, the lesser would be the chances of any further fiscal slippage," Ajit Mishra, VP Research, Religare Broking, told BusinessToday.In. Heavy selling from foreign portfolio investors (FPIs) and marginal support from domestic institutional investors (DIIs) in the four trading sessions between May 12 to May 15 triggered the decline of the equities. Nearly 40 per cent of the selling by the FPI, in the cash and derivative segments, during the ongoing month has been in just four days of the week Modi announced the stimulus. Way ahead for investors Even as the impact of the stimulus may be reflected in the longer-term, analysts advise retail investors to move ahead with a cautious strategy. Defensive sectors such as pharma and FMCG could currently offer good opportunities since these have been defying the coronavirus pandemic very well. Amid ongoing volatility in the stock markets, the investors may tread cautiously and save cash, Umesh Mehta said. "Retail investors are advised to wait and watch and preserve cash by not aggressively investing at the current levels. Investors can selectively book profits too in order to raise liquidity," Mehta added. Investors can also focus on safe haven such as gold, said analysts. Even ETF and sovereign gold bonds could be an option, Vijay Kuppa, Co-Founder, Orowealth, told BusinessToday.In. "Investors should consider investment into Gold as an Asset via Mutual funds, ETF or Sovereign Gold Bonds which will assist in hedging the portfolio and provide capital protection. An investor can also consider Government Tax Free bonds in case it is announced which provide an option as a Debt product," Kuppa also said. On the other hand, Ajit Mishra's top bets included Reliance industries and Bharti Airtel apart from FMCG and pharma stocks in the current scenario. "Reliance Industries has witnessed healthy buying interest as the company signed several deals for its Jio platforms. This along with the recently announced rights issue would help the company to reduce its debt. Further, Bharti Airtel is also expected to be one of the least impacted companies due to a possible increase in data usage," Ajit Mishra noted. Expected Sensex, Nifty levels The coronavirus situation, over the days, will decide levels for the domestic equity indices in the near term, the analysts said. "Over the long term we expect the Sensex and Nifty to rise as the economy returns back to normal and consumption becomes stable. In the short term, individuals should expect short term volatility as the impact due to lockdown will start becoming visible in the forthcoming corporate results," Kuppa said. However, Mehta is not very hopeful about the prospects of markets moving forward. "After the recent break of 9050 on Nifty, the next immediate crucial levels for Nifty and Sensex are 8100 and 27600 respectively on the downside and once they get violated, we might get to test the recently established lows of 7500/7200 on Nifty and 25000 in the Sensex," he said. Commenting on the likely stock market levels in the near-term, Ajit Mishra said, "Our short term view is negative and we might see Nifty testing 8400 zone ahead while upside seems capped to 9400 zone. Similarly, Sensex may test levels close to 28,000." Summarise this report in a few sentences.
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more correction may be seen in the market over the period owing to job losses, consumption-dip and longer economic recovery. benchmark equity indices - Sensex and Nifty - have corrected almost 6 per cent each since the package was announced by prime minister modi on may 12. heavy selling from foreign portfolio investors and marginal support from domestic institutional investors triggered the decline of the equities.
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sales growth in June in Firms as growth in June sales growth in June in June in as FMCG in June in as in growth growth FMCG as supply chains FMCG in as supply growth in sales sales June sales growth growth as New Delhi: Severalcompanies have reportedand expect the momentum to continueUnlock 2.0, though some challenges persist.suchGodrej Consumer Products Ltd (GCPL) and Marico expect overallthe April-quarter, which was severely impacted due to the coronavirus lockdown.GCPL expects a "mid-single-digit, volume-drivenApril-, the company said recentlyits quarterly update for Q1 FY21.The Godrej group firm has seen a "strong recovery" from mid-May andacross most of the markets where it operates.It is witnessing robust demandthe household insecticide category, while the hygiene segment too saw strong traction, GCPL said.The company has a range of brands across personal and home care segment, suchCinthol, Protekt, Ezee, Godrej No 1, Hit and Good Knight.Another homegrownfirm Marico, sharing its quarterly update, said it witnessed significant disruptions during the first fortnight of April but since then, has been able to steadily scale up operations to near-normal levelsWhile edible oils and foods businesses resumed operationsearly Aprilper government guidelines, hair oils and personal care segments could only commencelate April and early-May, it added."With the Q1 top line translating into a single digitover the annual run rate of FY20, the company expects to bounce back to posting volume and valueduring the rest of the year," said Marico, which owns brand like Parachute, Saffola, Hair & Care, Nihar and LivonAccording to experts,companies have seen an improvementproduction andhave stabilised."Severalcompanies have seen a marked improvementthe last monthproduction andchain is stabilised and lockdown restrictions are lowered across states," EY Partner and National Leader - Consumer Products and Retail Pinakiranjan Mishra said.Some consumer durables companies have also reportedof refrigerators, vacuum cleaners, microwave ovens and washing machines.According to Panasonic India Divisional Head - CSD Suguru Takamatsu, people confined within their homes have developed greater regard for appliances that help them multitask and make their lives easier."Since easing of the lockdown, and allowing sale of consumer electronics, we at Panasonic India, are starting to inch towards steady," Takamatsu said.Fuelled largely by rural demand, "y-o-y for month of, our refrigerators () grew by 40 per cent, vacuum cleaners by 20 per cent, microwave and washing machines (top-load) too saw an uptake of 44 per cent and 24 per cent respectively", he added.Consumers are opting for large-screen TVs to binge on entertainment which is driving theacross markets, he said."Grooming products, especially the trimmers have seen a 5Xduring this period,consumers are depending less on salons to ensure safety and hygiene. We are quite hopeful that the festive season will help us recover some of the losses incurred during lockdown," he said. Summarise this report in a few sentences.
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a number of firms report growth in sales in June in as supply chains FMCG in as supply chains FMCG in as supply chains FMCG in as supply growth in June sales growth growth. some companies expect the momentum to continueUnlock 2.0, though some challenges persist. a number of companies have reported improvement in their production and chain. the coronavirus lockdown has impacted the April-quarter results.
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Empower Your Corporate Journey with Strategic Skill Courses Offering College Course Website Northwestern University Kellogg Marketing Leadership Development Program Visit IIM Lucknow IIML Chief Operations Officer Programme Visit Indian School of Business ISB Leadership in AI Visit NEW DELHI: It may take six to nine months for factories to come back on track if India manages to contain the spread of coronavirus in the next quarter beginning April, India Inc said on Thursday.Industry also said the coronavirus pandemic has made the global economic recovery extremely difficult in the near-to-medium term, and India is also experiencing disruptions in many ways that have the potential to derail the growth story.The World Health Organization (WHO) has already declared the coronavirus outbreak a pandemic. Globally, the virus has already claimed over 8,000 lives globally, including four in India."If the pandemic is contained in the next quarter, it will take two to three quarters before factories can operate at capacity, and the global supply chain starts to get back to normalcy," said industry chamber Assocham.The report also expressed apprehension that with more people encouraged to work remotely and businesses shutting stores or plying lesser hours, the economy is expected to witness a fall in consumer confidence and spending.Another leading industry body FICCI said the coronavirus outbreak could gorge a deeper impact now as the global economy is already going through a slow phase currently, including China."A crisis of this magnitude can therefore translate into a bigger slump for the world economy at this juncture. Apprehensions regarding the current slowdown turning into recession also cannot be ruled out at this point of time," it said.S&P Global Ratings on Wednesday said global economy has entered recession.FICCI said there was a strong hope of recovery in the last quarter of this financial year."However, the new coronavirus epidemic has made the recovery extremely difficult in the near-to-medium term. Summarise this report in a few sentences.
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coronavirus pandemic in india could take six to nine months to contain spread. industry says it is also experiencing disruptions in many ways. global economy already going through a slow phase, including china. industry group fears a deeper impact now as global economy is already in recession. apprehensions regarding the current slowdown turning into recession also not ruled out.
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Budget 2018 has evoked a plethora of reactions in international media. Noted global media houses covered India’s Budget 2018 extensively and discussed how the Modi government will fulfill promises made by Finance Minister Arun Jaitley. BBC termed Modi government’s flagship National Health Protection Scheme as “ambitious”. It said the scheme is “thought to be one of the largest such schemes in the world” and will be liked by the rural voters. The BBC also said that billions of dollars have been allocated for health, education, social security and rural infrastructure. However, it raised concern over the private healthcare system in the country and pointed out that there is no clarity over the source of the funds for the scheme. The New York Times also reported about the healthcare scheme in detail. It said the scheme will surely be popular in the country as most people have no health insurance. It also talked about the popular aspect of the Budget 2018. “Although India’s overall economy is growing, Mr. Modi and his governing Bharatiya Janata Party have been trying to find ways to court the population left behind,” The New York Times said. Check how much Income Tax you have to pay now- BUDGET 2018 INCOME TAX CALCULATOR Another major daily in the US, Washington Post hailed the health care scheme, saying it has the potential to transform the country’s “dilapidated” government-funded health-care structure. It also compared India’s spending on health with that of China and the US, while quoting Brookings India on life expectancy data of India, China and the US. WATCH- Tax Takeaways From Budget 2018 For The Common Man The Global Times in China said India’s Budget 2018 focused on agriculture, infrastructure and healthcare.It published a report by Chinese news agency Xinhua which quoted India’s Finance Minister Arun Jaitley as saying, “This is the world’s largest government-funded health program.” Also Read- Budget 2018 benefits, impact LIVE: ‘Modi Care’ hogs limelight, Jaitley’s proposals get mixed reactions Jaitley presented Narendra Modi government’s Union Budget 2018 on February 1. From the first-of-its-kind healthcare initiative, housing for all, education, agriculture, farmers to senior citizen, budget 2018 has addressed a few key issues pertaining to common man or aam aadmi. Budget 2018 is also the last full Union Budget ahead of the 2019 Lok Sabha Polls. Summarise this report in a few sentences.
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the new york times said the healthcare scheme will surely be popular in the country as most people have no health insurance. the global times also hailed the health care scheme, saying it has the potential to transform the country’s “dilapidated” government-funded health-care structure. the global times in china said India’s budget 2018 focused on agriculture, infrastructure and healthcare.
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live bse live nse live Volume Todays L/H More × Private lender Karur Vysya Bank (KVB) on Wednesday announced its entry into the bullion business. The bank in a statement said that the gems and jewellery business is an important part of India's economy and KVB is now in a position to enhance its support to this important industry. As a trial base, the bank delivered its first shipment to clients in Chennai and Coimbatore recently. It is now in the process of ramping up the business to fully extend support to its existing set of customers across the nation, it said. The bank mentioned that the new business has been launched after ensuring the highest quality risk management. The gems and jewellery business contributes about 7 per cent to the country's gross domestic product (GDP) and 15 per cent to total merchandise exports. India is the second largest consumer of gold in the world. Demand for gold in the country stood at about 700 tonnes during 2019, the bank said. Summarise this report in a few sentences.
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private lender Karur Vysya Bank (KVB) on Wednesday announced its entry into the bullion business. the bank said that the gems and jewellery business is an important part of India's economy. it is now in the process of ramping up the business to fully extend support to its existing set of customers across the nation. the bank mentioned that the new business has been launched after ensuring the highest quality risk management.
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MUMBAI: Bank credit growth continues to be tepid as the slowdown continue to grip the economy. The latest numbers released by the Reserve Bank of India show that loans grew by just 6.3 per cent year-on-year during the latest fortnight ended February 14. The fiscal year is expected to end with a credit growth of 6-7 per cent, which will be the lowest in 58 years.Total bank credit amounted to Rs 100.4 lakh crore, up 6.3 per cent (year-on-year), according to the latest figures released by the Reserve Bank of India. Incrementally credit was contracting until September. Several government initiatives pushed the growth rate in the positive zone subquently. But it has failed to see the double digit growth of the past several years.A shift of large borrowers such as non-banking financial companies (NBFCs) and housing finance companies (HFCs) to the banking system for their funding requirements, had boosted bank credit growth in FY2019. However, factors such as muted economic growth, lower working capital requirements, as well as risk aversion among lenders, have compressed the incremental credit growth in FY2020, according to ratings firm Icra in a recent note. Icra has fore cast FY’20 growth at 6.5 to 7 per cent.Incremental net domestic credit this fiscal up to December 2019 is just a fifth of what it was a year ago according to ratings form Crisil . Lending to the retail segment and non-banking financial companies (NBFCs) showed good growth, while credit to corporates (ex-NBFC) and micro, small, and medium enterprises (MSME) declined.Crisil has estimated that credit growth may touch 6 per cent this fiscal. But it adds that the prolonged slowdown in bank lending may be bottoming out this fiscal, with gross credit offtake set to rise 8-9% on-year in fiscal 2021, a good 200-300 basis points (bps) over the likely growth of ~6% this fiscal, it said in a research note released earlier this week. As for this fiscal, some growth momentum is expected in the fourth quarter, after a subdued three quarters – due to traditional fiscal year ending growth, it said.A gradual pick-up in economic activity, continuing demand for retail loans, and strong growth in lending by private sector banks should drive the uptick. Recent policy moves announced in the Union Budget, and by the Reserve Bank of India (RBI) are also expected to provide spur.RBI’s move to exempt banks from cash reserve ratio (CRR) requirement for incremental credit to certain sectors for up to five years, will also support lending, Crisil said. Summarise this report in a few sentences.
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a shift of large borrowers such as non-banking financial companies (NBFCs) and housing finance companies (HFCs) to the banking system for their funding requirements, had boosted bank credit growth in FY2019. but factors such as muted economic growth, lower working capital requirements, as well as risk aversion among lenders, have compressed the incremental credit growth in FY2020.
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live bse live nse live Volume Todays L/H More × Fitch Ratings has revised the outlook on Bharti Airtel's Long-Term Foreign-Currency (FC) Issuer Default Rating (IDR) to negative from stable, affirming it at 'BBB-'. The rating agency said the outlook change is sovereign-driven, and that projected that Bharti's 2020-21 revenue and Ebitda (earnings before interest, taxes, depreciation, and amortisation) will remain robust, fuelled by improvement in the Indian wireless market and continued growth momentum in African markets, despite the effect of the coronavirus pandemic. Fitch, last week, lowered India's sovereign rating outlook to 'negative' from 'stable', saying the coronavirus pandemic has significantly weakened the country's growth outlook. It, however, retained the lowest investment grade rating of 'BBB-'. "Fitch Ratings has revised the outlook on India-based Bharti Airtel Limited's (Bharti) Long-Term Foreign-Currency (FC) Issuer Default Rating (IDR) to negative from stable, and affirmed the IDR at 'BBB-'," it said in a statement on Monday. Fitch said it has also affirmed Bharti's senior unsecured rating and Bharti Airtel International (Netherlands) B.V.'s senior unsecured guaranteed bonds at 'BBB-', and Network i2i subordinated perpetual bond's rating at 'BB'. COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show "The negative outlook follows our revision of the outlook on India's Long-Term Foreign-and Local-Currency IDRs to negative from stable on June 18, 2020. Bharti's FC IDR and senior issue ratings are not directly constrained by India's sovereign rating but cannot exceed the country ceiling (BBB-), which reflects the transfer and convertibility risks associated with FC obligations," the statement said. It added that should the sovereign IDRs be downgraded, the country ceiling may also be revised down in tandem, which would constrain Bharti's FC IDR and senior issue ratings to 'BB+'. "The change in the outlook does not indicate a change in our view of Bharti's underlying credit profile, but rather reflects the heightened probability that India's country ceiling could be lowered to 'BB+', which would then constrain Bharti's FC IDR and senior issue ratings," it said. The rating agency forecast that Bharti's FY21 revenue and Ebitda growth will remain robust at around 10-15 per cent, driven by improvement in the Indian wireless market and continued strong growth in African markets, despite the effect of the coronavirus pandemic. "However, the growth will be slower than our previous expectations of 20-22 per cent, due to lower data growth and weaker economic activity amid the pandemic in India and Africa," it said. On the issue of regulatory dues payment, Fitch said it assumes the balance demand of $2.3 billion to be paid in its 2020-21 leverage estimates. Summarise this report in a few sentences.
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the rating agency said the outlook change is sovereign-driven. it said the change is projected that Bharti's 2020-21 revenue and Ebitda will remain robust. the coronavirus pandemic has significantly weakened the country's growth outlook. it retained the lowest investment grade rating of 'BBB-'. a vaccine works by mimicking a natural infection.
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India economic survey 2018: The Economic Survey 2017-18, which was released in Parliament ahead of the Union Budget 2018 to be presented by Finance Minister Arun Jaitley on February 1 has some good news for jobseekers and says that job creation will remain a key focus area for the government in the near term. The economic survey said that employment, i.e, finding good jobs for the young and burgeoning workforce; especially for women; education, i.e; creating an educated and healthy labor force and agriculture, i.e; raising farm productivity while strengthening agricultural resilience will remain the three areas of policy focus in the near term. Further, the economic survey notes that as India emerges as one of the world‘s largest economies, it needs to gradually move from being a net consumer of knowledge to becoming a net producer. Also read: India Economic Survey 2018: Arvind Subramanian says economic revival underway; 4 key takeaways “Given the dizzying pace and expansion of scientific research and knowledge on the one hand and a generally higher importance given to careers in engineering, medicine, management and government jobs amongst India‘s youth on the other, India needs to rekindle the excitement and purpose that would attract more young people to scientific enterprise,” said the survey. Watch video: Budget 2018- 10 Expectations Of The Common Man The survey says that the government must look to invest in science. “Investing in science is also fundamental to India’s security: the human security of its populations; the resilience needed to address the multiple uncertainties stemming from climate change; and the national security challenges stemming from new emerging threats, ranging from cyberwarfare to autonomous military systems such as drones,” noted the economic survey. The economic survey also found that India is expected to regain the world’s fastest growing major economy tag as it is likely to clock 7 to 7.5 percent growth rate in 2018-19, up from 6.75 percent in the current fiscal, the survey said. Also read: India economic survey 2018: Farmers gain as agriculture mechanisation speeds up, but more R&D needed A recent study by SBI group Chief Economic Advisor Soumya Kanti Ghosh and Pulak Ghosh found that 15 million people are being added to the labour force every year. The study, titled “Towards a Payroll Reporting in India”, estimated that 3.68 million jobs were generated till November of FY18, which would imply 5.5 million in the entire year. “Based on all estimates, payroll of 5.9 lakh (i.e. 7 million annual) generated every month in India in current fiscal,” the report had said. Earlier, the congress leader Rahul Gandhi had said that the prime minister should say if he is unable to address the problems like unemployment and the Congress will come and do it in six months. “Farmers and youth are the two main issues concerning India and if Modiji cannot address these, he should say so and the Congress will come and do it in six months,” Congress Vice -president Rahul Gandhi had said during the recent Uttar Pradesh polls. Summarise this report in a few sentences.
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the economic survey 2017-18 was released in parliament ahead of the Union Budget 2018 to be presented by finance minister Arun Jaitley on February 1. it says that employment, i.e. finding good jobs for the young and burgeoning workforce, especially for women, education, and agriculture will remain the three areas of policy focus in the near term. the survey also found that India is expected to regain the world’s fastest growing major economy tag as it is likely to clock 7 to 7.5 percent growth rate in 2018-19
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The 30-share BSE Sensex has fallen more than 1,600 points from August 28 high, dented by falling rupee, rising crude oil prices, fiscal deficit concerns and escalated trade tensions. "There has been a tug of war between macro concerns and micro improvements. So, the market is likely to be volatile over next 6-8 months given that we are going into state elections, general elections," Pankaj Tibrewal, Vice President and Equity Fund Manager, Kotak Mahindra Mutual Fund told CNBC-TV18. Kotak MF is cautious on market as valuations are not cheap right now. Capital market regulator Securities and Exchange Board of India (SEBI) on Tuesday announced a cut in fees or expense ratio for mutual funds, which will have direct impact on their earnings or these companies can pass on to distributors to reduce impact on earnings. "Kotak MF is a regulated entity and respects any verdict of the regulator. It is difficult to say about the SEBI order's impact on MF as it depends on AMC to AMC and how much they pass on to distributors," said Tibrewal. He believes the industry has a huge growth potential as MFs account for only 13 percent of India's GDP as compared to 65 percent of GDP ratio, globally. Discretionary Demand He said overall consumption basket and staples have done extremely well and so have discretionaries. He feels consumer discretionary is likely to see traction. With higher fuel price, rising inflation pressure, we may see cut in discretionary spending in short term but the long term looks good, he feels. He said consumption space is at high valuations and not cheap now but be selective in stock picking. NBFCs Kotak MF is cautious on NBFCs space. He said companies which are more exposed to loan against property (LAP) segment needs to be watched out for. "Most of them are wholesale funded companies, so are more prone to interest rate." He is very selective in the space, more focussed on retail-oriented company where liability is good and asset quality is not a concern. Housing Tibrewal expects massive consolidation in the sector for next 3-5 years. "We see 20-25 pan India players after few years and would be difficult for 1-2 companies to survive, either they will merge or look for joint ventures." Pradhan Mantri Yojana had massive hit, though 44 lakh houses constructed recently which is huge, he said, adding cement demand continued despite pressure in real estate space surprised positively. So he advised be selective in the space but real estate and cement could be wealth creation opportunities over 3-5 years. Pharma Kotak MF is very stock specific in pharma space as generic price erosion is not over yet. Rupee depreciation is a great tailwind as major companies have more than 50 percent exposure to dollar denominated business, he feels. Midcaps pace Till last year, he said Kotak MF was extremely cautious on the space due to expensive valuations but first 8 months of this year, smallcap and midcap underperformed largecaps. More than 40 percent companies of BSE 500 corrected more than 20 percent but still it is difficult to get at bottom of the pyramid in some stocks, he said. He believes midcap and smallcap valuations are reasonable than it were 6-8 months ago. "One can use this correction for good value picking and build portfolio which will be benefited after next 2-3 years." Summarise this report in a few sentences.
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the 30-share BSE Sensex has fallen more than 1,600 points from august 28 high. falling rupee, rising crude oil prices and escalated trade tensions dented the market. MFs account for only 13 percent of india's GDP as compared to 65 percent globally. NBFCs Kotak MF is cautious on market as valuations are not cheap right now.
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IL&FS Transportation Networks | The company defaulted on the interest on non-convertible debentures due on August 25, 2020. (Image: Reuters) Mutual fund redemptions amounting to Rs 2 lakh crore by investors following the IL&FS crisis will help in supporting other NBFCs and restrict spillovers into real economy, a report said. The report by economists at private sector HDFC Bank said estimates suggest Rs 2 lakh crore have moved from MFs back to banks as investors pulled out of liquid and fixed income funds that had supported NBFC funding. "With this windfall in deposits, banks could use it to buy good quality assets from the NBFCs. This we believe is a more probable scenario and could help ease a lot of liquidity related worries going forward," it said. However, it flagged worries around high-risk folios and doubted if they will find buyers and also to some sub-prime worries on loans to small businesses and auto. It can be noted that banks have already declared an interest in portfolio buys from NBFCs, led by SBI announcing a three-fold increase in its target to buy portfolios to Rs 45,000 crore. Lending by non-banks to fund consumer durable buys, small businesses and housing will be impacted in case of a liquidity crunch, it said. The default by IL&FS may be a one-off case and the response by policymakers suggests it is unlikely to blow into a systemic problem, a report by economists at largest private sector lender HDFC Bank said. In the short-term, it is more of a "confidence issue" and the uncertainties will be troubling the markets, it said. It can be noted that over the past few weeks, in a rising interest rates scenario, concerns have been raised about potential asset liability mismatches at NBFCs who borrow short and lend long. This has led to a liquidity problem and forced policymakers to intervene. "In case of a liquidity shortage, there could be some slowdown in the advances made by the NBFCs and sectors like consumer durables, MSMEs, and housing could be affected to some degree," it said. In the last five years, to FY17, share of NBFCs in the consumer durables financing has jumped to 32 percent from 19 percent, while the same for industrial sector has declined since September 2016, and for micro, small and medium enterprises have seen a 35 percent growth. NBFCs' share in total credit has increased from around 5.5 percent in December 2015 to around 10 percent by March 2018, it said. If banks step up lending to these areas where NBFCs had become stronger, the impact on the real economy will be marginal, it said. Swiss brokerage UBS, however, said that a slowdown in lending by NBFCs will hurt macro growth and possibly discretionary consumption. Explaining the enormity of the liquidity problem staring at us, HDFC Bank economists said up to Rs 1 lakh crore of NBFCs' short-term borrowings are coming up for refinance till March. "While we do not see the prospect of a major crisis, there are some legitimate questions about redemptions and rollovers including the possibility of default. This could in an extreme situation foster contagion across this lender class and disrupt the money and debt markets," it said. Policymakers can deploy various tools, including a special liquidity window akin to the one opened in face of the 2008 financial crisis, it said, adding that it will be a "last resort". Summarise this report in a few sentences.
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mutual fund redemptions amounting to Rs 2 lakh crore by investors following IL&FS crisis. a report by private sector lender HDFC Bank said estimates suggest Rs 2 lakh crore has moved from MFs back to banks. it flagged worries around high-risk folios and doubted if they will find buyers. IL&FS defaulted on interest on non-convertible debentures due on august 25, 2020.
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With a career spanning over two decades, Relli brings to the table a wealth of experience in banking... Show more » Promoters should be allowed to buy shares (and not sell) from the market even after the year end and till declaration of results with an advance intimation of two days. Indian investors (all and not just new) should be allowed a tax deduction (like the erstwhile 80CCG- RGESS) of say Rs 1 lakh on investment of Rs 2 lakh in equity mutual funds investing in top 200 stocks with a lock-in period of 2 years. The Finance Ministry may offer some tax incentives on investment in ETFs (especially Index ETFs) with appropriate lock-in period to promote this low-cost instruments. Long-term capital gains tax on sale of equity/equity mutual funds should be exempted for any sale after April 01, 2020 for two years. This exemption can be restricted to top 500 stocks to avoid tax evasion by fraudsters. This may revive interest of investors in equity markets. Although surcharge on dividend income received has been capped at 15 per cent (vs highest 37 per cent), income tax on dividends received by resident shareholders should be cut to between 5 and 15 per cent (the tax rate applicable to foreign shareholders under DTA) vs the current 30 per cent. RBI may look at increasing the LAS (loan against share) limit from Rs 20 lakhs to Rs 100 lakh to unlock liquidity from shares owned by investors; of course, lenders may fix up their own LTV (loan to value) ratio to control their risks. Sebi should revise the categorisation of largecap, midcap and smallcap shares for mutual funds so that the polarization in Indian markets is halted and reversed to some extent. The government should think of setting up a sovereign fund to stabilise equity markets in such volatile times (with appropriate safeguards and pre-defined exit times). Till our legal systems deliver justice faster, exchanges and regulator should not ease listing norms for new corporates (many investors have lost monies by investing in these companies in the past few years); these companies can tap the PE route and then once they gain size and respect, come to list on exchanges. The govt/RBI has to speed up the process of getting Indian bonds listed on global bond indices so that the panic in the debt markets from FPI side withers away to an extent. The Indian equity market has suffered over the past three years due to a multitude of regulatory and disruptive events. Listed corporates have posted mixed results with a small proportion continuing to do well while a lot of others are facing tough times in dealing with various disruptive factors. The latest slowdown due to the Covid-19 lockdown does not help matters. Nifty fell about 38 per cent from the recent high to low.Most stocks are down even more. Earnings estimates of companies have been cut sharply, while risk appetite has fallen among investors.The measures taken by the government are focused on cutting interest rates, making liquidity available and providing moratorium for three months to businesses and individuals apart from providing relief to the downtrodden. The lockdown has since been extended from initial 21 days to 40 days. In such a situation, selective opening of the economy with appropriate safeguards in place are required to avoid a lasting damage to businesses and to create avenues for earnings for the self-employed and migrant labour.Though, we have in the past seen markets bounce back from such selloffs, the repeated wealth erosion for small investors needs urgent attention from the powers that be.Given the challenges, here is an attempt to list out some measures that can help revive investor interest in equity markets , improve demand for equities and encourage supply of risk capital Summarise this report in a few sentences.
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govt/RBI has to speed up the process of getting Indian bonds listed on global bond indices. govt/RBI has to speed up the process of getting Indian bonds listed on global bond indices. a spokesman for the sbc says the government should not ease listing norms. he says the government should consider setting up a sovereign fund to stabilise equity markets.
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The outcome of the forthcoming general elections will be the key factor influencing the equity market in 2019 and if a stable government comes to power it can lift the Nifty up to 13,000 levels, a brokerage said Thursday. If the the hustings throw up a fractured mandate, the Nifty can go down to 10,000 as well, Kotak Securities said. Its managing director and chief executive Kamlesh Rao said which party comes to power is not very important but what’s important is that the next government should have a clear majority. “If the election outcome is negative, the Nifty can go down to 10,000-10,500, but a positive outcome can take it to 12,500-13,000 points by December 2019,” he told reporters. He, however, sought to dispel concerns over valuation, saying the downside even in the case of a fractured mandate is not very large and the market will go down by only by around 700 points from the current levels. Rao justified the recent correction in small and mid-caps and said there is a scope for more repricing in them. But he was quick to add that the benchmark Nifty is not over-priced now. Also read| Sensex plunges 572 points, Nifty ends near 10,600; four key reasons behind stock market carnage Global events that will have an impact on the domestic market are the rate actions by the US Fed, the outcome of the Brexit, and trade wars, he said. However, the brokerage played down the impacts of the outcome of the assembly polls in MP, Chhattisgarh, Rajasthan, Telengana and Mizoram, which will be announced Tuesday next, saying it will not have as much of an impact as the hustings slated for April-May and that if at all it goes against the ruling party, things will settle down in the 10-15 days. Many analysts are of the view that the BJP will fare will badly at least in Rajasthan and MP.While MP, Chhattisgrah and Mizoram have already gone to the polling booths, Rajasthan and Telengana are voting Friday. One of the biggest positives for the markets, even as foreign investors have been net sellers during the year, is the continued resilience of mutual fund inflows, Rao said. He called for a Jan Dhan Yojana-type drive to increase the number of demat accounts to at least 100 million from the present 35 million. Rao also said the ban on using the Aadhaar for opening accounts has become a big hindrance, increasing the time taken to 3 days from 20 minutes before the Supreme Court ban. When asked about discount brokerages, he said one or two of them have created a niche for themselves and that bigger institutions like them have to be ready to face more such disruptions. The brokerage is positive on auto, auto ancillaries, private sector banks, building materials, construction and information technology sectors. Summarise this report in a few sentences.
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if a stable government comes to power it can lift the Nifty up to 13,000 levels. if the hustings throw up a fractured mandate, the market can go down to 10,000. but a positive outcome can take it to 12,500-13,000 points by December 2019. a BJP-led government will be slated for assembly elections on thursday.
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Representative Image live bse live nse live Volume Todays L/H More × Unwilling to be left behind in the digital race, two-wheeler companies are ready to take purchasing digital, promising doorstep delivery of bikes and scooters as COVID-19 makes showroom-hoppers anxious. Four of India’s top five two-wheeler manufacturers controlling nearly 80 percent of the domestic volumes have either started a major push at selling vehicles online or are in advanced stages of creating such a platform and a supporting backend infrastructure. Under the digital sales initiative, customers can visit the website of the manufacturer for placing an order and getting a doorstep delivery of the vehicle of choice just like ordering a smartphone from an e-commerce company. The entire buying process including securing loans and insurance is done online without any in-person interaction during the period except test rides. Carmakers like Hyundai, Maruti Suzuki and others have already rolled out these options. Honda and Bajaj Auto are the latest to jump onto the bandwagon. With the gradual restarting of manufacturing and sales operations post easing of lockdown about 80 percent of Honda’s dealers are now providing doorstep deliveries and digital booking facilities. Honda’s initial internal analysis for May showed that around 5 percent of total customers booked online and almost 10 percent availed test ride at their doorstep. Yadvinder Singh Guleria, Director – Sales & Marketing, Honda Motorcycle & Scooter India said, “We are seeing a major shift in customer engagement in the new normal of coronial era. The focus on enabling contactless engagement with customers for the convenience of all stakeholders in this time of social distancing.” While Bajaj Auto is yet to roll out a digital platform for selling its motorcycles, a senior company executive confirmed to Moneycontrol that plans are afoot to tap this medium on an urgent basis. A major chunk of Bajaj’s sales comes from budget motorcycles – Platina and CT100 – bought by customers who may not be as digitally connected and comfortable buying vehicles online. Rakesh Sharma, executive director, Bajaj Auto said, “Maybe it’s the class of customers who are not as digitally savvy and we have also found that the percentage of people buying completely digitally is very limited. We will certainly have to quickly get onto the digital process, which we have done for Chetak. The Chetak can be bought completely online. So we would now like to take that platform and apply to other models. Going forward this is going to be a very important channel to nurture.” Two-wheeler market leader Hero MotoCorp was the first to make sales online, much before coronavirus disrupted markets. The Delhi-based company launched a separate online portal in August last year allowing customers from Mumbai, Bengaluru and Noida to buy motorcycles and scooters. Home delivery will carry a nominal charge of Rs 349. On June 2 Suzuki Motorcycles India, the country’s fifth largest two-wheeler maker introduced a five-step buying process. This comprises booking of desired product, followed by colour selection, then location and dealer selection, choosing the payment mode and finally choosing the date and time of delivery. “Customers can book a product by paying the booking amount and full payment of the ex-showroom price. The payment will be made through an online gateway and the invoice detail will be shared with the customer and respective dealer emphasizing on the government prescribed preventive measure”, Suzuki said in a statement. Summarise this report in a few sentences.
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four of India’s top five two-wheeler manufacturers controlling nearly 80 percent of the domestic volumes have either started a major push at selling vehicles online or are in advanced stages of creating such a platform and a supporting backend infrastructure. under the digital sales initiative, customers can visit the website of the manufacturer for placing an order and getting a doorstep delivery of the vehicle of choice just like ordering a smartphone from an e-commerce company.
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RBI Governor Shaktikanta Das is of the view that continuing economic slowdown requires an all-out effort to strengthen private consumption and investment. The central banker feels the recent measures announced by the government should help create demand in the economy, and drive investment.According to the minutes of the Monetary Policy Committee ’s policy review held on October 1-4, released on Friday, Das told the panel that private investment has lost traction due to the corporate sector's reluctance to make fresh investment even though capacity utilisation in the manufacturing sector has operated close to the long-term average in recent times.He said the government has initiated several measures in recent months which, together with monetary easing by RBI, are expected to work their way through the real economy.“The unsettled global environment in the face of rising trade tensions has impacted India’s exports, besides delaying the revival of private investment by creating uncertainty. In this environment, it is important to focus on strengthening domestic demand,” the governor said as he pushed for a 25 basis points rate cut.RBI slashed the policy repo rate by 25 basis points in the latest review, cumulatively lowering it by 135 basis points in eight months. One MPC member Ravindra H Dholakia voted for 40 basis point rate cut, while other five including Das, Chetan Ghate, Pami Dua, Michael Debabrata Patra and Bibhu Prasad Kanungo voted for a 25 basis point rate cut.“I also vote for persevering with the accommodative stance as long as it is necessary to revive growth, while ensuring that inflation remains within the target. This enhanced forward guidance on the stance of monetary policy should strengthen monetary transmission and support the real economy,” Das said.He said systemic liquidity has been in surplus since June 2019 and the introduction of lending rates linked to an external benchmark should result in better monetary transmission.Making his case for a 40 basis points rate cut, Dholakia said external benchmarking of the lending rates by the banks would result in better transmission now. Corporate bond market reforms by allowing entry to corporates with lower rating than AAA, encouraging issuance of long term bonds and creating a proper yield curve for the government bond market to serve as a benchmark can go a long way to deepen the market and improve the transmission.“While such reforms are urgently required, they should not constrain the rate action by RBI. Enough space exists for a 40 bps reduction in the policy repo rate now with space still existing for future till growth recovers. Hence, I vote for continuing with accommodative stance and cut the policy repo rate by 40 bps now,” he said.He also highlighted that high frequency data on indicators for estimating quarterly growth suggest that growth slowdown may continue in the second quarter of 2019-20. Any substantial recovery is likely only in the Q3 of 2019-20. This is because, the impact of corporate tax cut particularly for the new enterprises and good monsoon will be kicking off from the third quarter of the current year.“As a result, the output gap would continue to be negative for at least next 3 to 4 quarters leading to downward pressures on the CPI excluding food and fuel,” said Dholakia.Key highlights from other MPC members:1) Since the last review, economic activity has continued to weaken.2) External demand conditions have worsened. Geopolitical risks remain unresolved. There has been a resurgence of trade policy tensions, and global growth has continued to weaken. Exports contracted in Q1 FY19:20.3) Domestically, sentiment remains weak.4) Consumer confidence fell for the 3rd consecutive round.5) The Business Expectation Index (BEI) also dipped. However, sales growth remained steady for the non-IT services sector. Weak sentiments may become self-fulfilling, which will complicate the job of monetary policy.1) Private consumption and investment activity are weak, and business and consumer sentiment are somewhat downbeat.2) Given the slowdown in growth on the domestic and global fronts, along with benign headline inflation and the expectation that it will remain below target, there is policy space to further cut the policy repo rate to boost domestic growth, within the flexible inflation targeting mandate.1) Inflation continues to trail below target and is projected to remain so over the 12 months ahead horizon.2) The outlook is fraught with downside risks, but the prospects for agriculture have brightened and along with industry’s inventory restocking requirements in the festival season, scope opens up for reviving spending.1) The slowdown of GDP growth in the recent period has been underpinned by deficient domestic demand. The recent measures initiated by the government should be helpful in supporting domestic demand, especially investment.2) While the impact of past policy rate cuts by the MPC is expected to transmit to the real sector gradually, there is a need to reinforce the past monetary policy measures and the recent steps taken by the government in supporting domestic demand. As inflation is projected to remain below the target of 4 per cent till the first quarter of 2020-21, policy space is available to support growth. Summarise this report in a few sentences.
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RBI slashed the policy repo rate by 25 basis points in the latest review, cumulatively lowering it by 135 basis points in eight months. Das believes the recent measures announced by the government should help create demand in the economy, and drive investment. he said private investment has lost traction due to the corporate sector's reluctance to make fresh investment.
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Ease of Doing Business for MSMEs: Indian hotels and restaurants are likely to “succumb” by the end of the year due to the lockdown impact if immediate action is not taken by the government, Federation of Hotel & Restaurant Associations of India (FHRAI), which represents 5 lakh restaurants and 55,000 hotels, told Finance Ministry’s Principal Economic Advisor Sanjeev Sanyal. The association told Sanyal, over a recent webinar hosted by the former, about the “reservations and non-cooperation of banks in extending the one-time restructuring of loans announced by the government,” according to FHRAI. Ever since lockdown was enforced by the government in March, the hotel and restaurant sector has been seeking necessary support from the government to help overcome the Covid burden. The sector, which largely has small and mid-sized businesses, accounts for 12.75 per cent of India’s employment out of which 5.56 per cent is direct and 7.19 per cent indirect employment. “We presented to him the revenue projections which indicate a loss of Rs 1.6 lakh crore and job losses mounting to 5.5 crores if the sector is not revived. With no revenues, but rentals, salaries, statutory bills still to be paid, the industry may succumb by the year-end. Indian Hotel and Restaurant (Hospitality) industry contributes about 10 per cent GDP to the country’s economy and needs urgent attention from the Government,” said Gurbaxish Singh Kohli, Vice President, FHRAI. Importantly, the weekend lockdown or partial lockdown, which was imposed in 15 states and union territories, hit the overall retail sector. Uttar Pradesh, Tamil Nadu, Punjab, Nagaland, Madhya Pradesh, Thiruvananthapuram in Kerala, Jharkhand, Jammu and Kashmir, Haryana, Chandigarh, Assam, Andaman & Nicobar had imposed weekend lockdown in Unlock 3.0 while Uttarakhand and West Bengal were partially locked down and Maharashtra’s Thane district had shut malls. Under Unlock 4.0, multiple states such as UP, Punjab etc have continued with the weekend lockdown. “Almost 95 per cent retail is MSMEs and they are struggling. All kinds of retailers see around 45 per cent of their business on the weekend. Demand per se is inelastic. Despite safety norms, customers are not willing to come to the store,” Kumar Rajagopalan, CEO, Retailers Association of India (RAI) had told Financial Express Online. Also read: Atmanirbhar Bharat: Govt expands programme for agarbatti units; to benefit around 6,500 artisans now Sanyal, however, informed the hoteliers and restaurateurs that “appropriate action” will be taken against the banks not following the RBI or the government’s directive. “If something isn’t working, the government will intervene and identify the reasons for it not working. I would ask the industry to flag specific cases and details of the banks so that we can take measures to address and resolve the issues,” Sanyal said adding that the 100 per cent guarantee which is given to MSMEs is also applicable for the hospitality sector. The association also informed Sanyal about interaction with the Commerce Ministry for “rationalizing and cutting down the number of licenses under ease of doing business policy. We also apprised him on the unscrupulous licencing laws including copyrights issues,” said Pradeep Shetty, Joint Secretary, FHRAI. While Sanyal asked the association to reconnect on the issue of rationalising licenses, he urged the members to “focus on available things and try to resolve issues within existing choices that are not working” The simplest way would be to take examples from the rest of the world where the systems are working successfully. So instead of looking to perfect things, we should aim at minimum moves for a maximum outcome, Sanyal added. Summarise this report in a few sentences.
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industry contributes about 10 per cent GDP to the country's economy. weekend lockdown or partial lockdown, which was imposed in 15 states and union territories, hit the overall retail sector. if government does not act, industry could lose Rs 1.6 lakh crore. 'all kinds of retailers see around 45 per cent of their business on the weekend and they are struggling,' says afda.
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BENGALURU: Near , a software-as-a-service (SaaS) startup, which collects real-life data on consumers and merges it with online data to create a wholesome profile, has raised $100 million (Rs 686 crore) from London-based private equity firm Greater Pacific Capital (GPC).Started in 2012, Near collects consumer data from various sources including telecom players, apps and Wi-Fiproviders to build real life-based data profiles that throw up consumer insights for its clients such as WeWork MetLife and Mastercard Based out of Bengaluru and Singapore, Near plans to sell its services in India soon, while it scales up core markets like Australia, New Zealand, and the US. Summarise this report in a few sentences.
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software-as-a-service (SaaS) startup near has raised $100 million from private equity firm. Near collects consumer data from various sources including telecom players, apps and Wi-Fi providers. the startup plans to sell its services in india soon, while it scales up core markets like australia, new Zealand, and the us. near plans to sell its services in india soon, while it scales up core markets like australia, new Zealand, and the us.
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MUMBAI: India's real estate market is likely to see a significant price correction for the first time in a decade as the coronavirus pandemic stalls businesses across the country, according to a half-dozen industry insiders. Property prices may come down by 10-20% across geographies, while land prices could see an even higher reduction of 30%," said Pankaj Kapoor , chief executive of real estate consultancy firm Liases Foras , adding there hasn't been such a correction since the global financial crisis.Since then, prices in most markets have held steady despite lending and shadow banking crises.In the last year, things had taken a turn for worse because of a liquidity crunch at shadow banks - which are big lenders to both developers and property buyers - forcing companies to offer discounts.Now buyers can expect far steeper cuts."It is a complete buyer's market. So if somebody really wants to do the deal, they have to reduce prices," said Ram Raheja of S Raheja Realty in Mumbai.The situation now is so severe that there is four to five years' worth of real estate inventory across India - an all time high. The country's nine major residential markets have unsold units worth some 6 trillion rupees ($80 billion), according to a report in January by PropTiger, an online real-estate portal.Banks are also worried that if developers can't liquidate their stocks, it could lead to defaults and add to a $140 billion pile of bad loans.In the last few quarters, even though the government has come up with steps to resolve the stress in the real estate market, several projects are still stuck, lacking funds or buyers.The situation looks set to worsen as coronavirus cases spread in India despite a three-week lockdown. So far the disease has infected nearly 2,000 people and killed more than 50."The profits of most developers have already taken a beating, and there is no profit as such left in the system. Everyone is just trying to survive by maintaining their cash flows," said Ashok Mohanani, vice president of the real estate industry body NAREDCO in Maharashtra.The impact will be felt across residential and commercial properties, Mohanani said, adding, "the question is of the survival of the fittest." Summarise this report in a few sentences.
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coronavirus pandemic stalls businesses across the country, according to industry insiders. property prices may come down by 10-20% across geographies, experts say. there hasn't been such a correction since the global financial crisis. the country's nine major residential markets have unsold units worth some 6 trillion rupees ($80 billion)
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Top non-banking finance companies are set to resume sanctioning fresh loans in June with sentiment boosted by the government stimulus and easing of the lockdown, even as they tread cautiously, aware that repayment capacities may have weakened with job losses and income declines. The Edelweiss Group, Mahindra Finance, IIFL Finance and Shriram Transport Finance have started disbursing loans with their clients demanding to draw down the limits sanctioned in March. Companies expect double-digit loan growth in the September quarter or early in the December quarter. Microfinance firms have also started disbursing emergency loans to help grassroots borrowers tide over the immediate crisis. “We will resume our new loan sanctions beginning June,” said Umesh Revankar, chief executive officer at Shriram Transport Finance. “We see opportunities opening up in rural and semi-urban areas that are not hard hit by Covid-19. Truck movements are going to rise, aided by the government’s stimulus package and easing of the lockdown.” The economy had come to a standstill following a nationwide lockdown that started on March 25. Shriram funds purchases of second-hand vehicles and expects overall loan expansion at below 5%, although the pace is expected to pick up with double-digit credit growth in the September quarter. Closure of regional transport offices during first two phases of the lockdown brought Shriram’s business activities to a halt.“We aim to attain 8-10% credit growth by the September quarter,” said Rashesh Shah, chairman at Edelweiss group. “Our clients are gradually coming back to work, which results in resumption of loan demand.” Edelweiss Finance plans to start sanctioning new loans from June as one-fourth of its customers are back in action. It will reopen 20% of its branches in smaller towns by this month end.Credit and refinance facilities from Small Industries Development Bank of India (Sidbi) and National Bank for Agriculture and Rural Development (Nabard) have been operational, bridging the liquidity gap that was creating a mismatch between demand and supply till April, captains of the sector said. “We all have to build confidence first and turn sentiment to positive,” said Ramesh Iyer, managing director at M&M Financial. “Government stimulus helped in that direction. We are also reinvesting product designs and services.”The company now permits new tractor customers to start repayments after one and a half months. Mahindra Finance is sanctioning two-month-old loan requests even as it gets new loan queries from rural farming companies. “We have already started digital loan sanctions for existing customers with a credit track record,” said Nirmal Jain, chairman of IIFL Group, which has resumed operations at half of its 1,800 branches. NBFCs below the top rung, too, are gearing up to lend afresh, with the credit guarantee programme announced by the government likely to boost their fund flow. The RBI’s targeted long-term repo operation for smaller firms (TLTRO 2.0) will get a better response now as the risk would be borne by the government fully or partially, people familiar with the matter said. “The special liquidity support to lower-rated NBFCs will mean banks don’t have to take credit risk and NBFC papers are likely to be lapped up,” said Sanjay Chamria, managing director at Magma Fincorp.NBFCs are opening branches mostly in the smaller towns and cities not hit badly by the outbreak. In cities, they have resumed operations in green and orange zones, which have fewer Covid-19 cases. Local branch chiefs are now empowered to take decisions on opening branches, especially in the rural and semi-urban areas. Summarise this report in a few sentences.
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the economy had come to a standstill following a nationwide lockdown. the economy had come to a standstill following the lockdown. the companies expect double-digit loan growth in the September quarter or early in the December quarter. microfinance firms have also started disbursing emergency loans to help grassroots borrowers tide over the immediate crisis. the companies are tread cautiously, aware that repayment capacities may have weakened with job losses and income declines.
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New Delhi: Prime Minister Narendra Modi , in his last speech from the ramparts of Red Fort ahead of the 2019 elections, made a strong political pitch for a second term by projecting himself as a leader who delivered a bold, decisive and efficient government.In doing so, he contrasted the Indian economy before his term as a “sleeping elephant” which, he said as per experts, had now woken up and is running. He claimed that India’s infamous red tape image has now transformed into a “red carpet for investment”.He also announced the launch of his signature medical insurance scheme, named Pradhan Mantri Jan Arogya Abhiyan or Ayushman Bharat, from September 25, which aims to offer Rs 5 lakh cover to nearly 10 crore poor families in the country ahead of the 2019 elections.“There was a time when the world used to call India’s economy risky. However, today, the same people and institutions are saying with confidence that our reform momentum has strengthened our economic fundamentals,” Modi said.“From being counted among the Fragile Five and concern that India was pulling down the world economy, today the world is saying India has become the destination for multi-trillion dollar investments.There was a time when India meant ‘policy paralysis’ and ‘delayed reforms’. However, today India is discussed for ‘reform, perform and transform’,” Modi said, to stress on the difference he had brought to India as PM in the last four years.Going by the “2013 speed” under the UPA , he said, it would have taken decades to achieve what his government has done in the past four years. He said the country was constructing twice the highways and four times more houses in the villages under him.At a time when he’s under criticism from Opposition for letting rupee breach Rs 70 mark against the dollar, the prime minister highlighted that India was now the sixth-largest economy on which the world places considerable hope.Here, he underlined the bold decision to implement the GST, calling it a “festival of honesty” that’s ensuring efficient tax compliance. “In the past 70 years, 70 lakh enterprises were included in the indirect tax net. However, in the last one year alone after GST, the figure has catapulted to 1.16 crore. The number of direct taxpayers has increased from 4 crore in 2014 to 6.75 crore.”Modi laid particular emphasis on his ability to “clean up” the corrupt system of power brokers and introduce efficiency, saying he had rooted out nepotism and affiliations. “Such shops are closed.We will never forgive corruption or black money. Whatever the obstacles, I will not leave this path.Corruption did harm India.” The PM said he was “restless, worked up, agitated and impatient” and that showed in his personal commitment to further reenergise the government machinery.“I am impatient as several countries have gone ahead of us and I am restless and impatient to take my country ahead of these countries. Malnutrition is a big bottleneck in the development of our children and I want to rid the country of the same. I am agitated so that a poor person can get an appropriate health cover to fight diseases. I am restless to ensure that our citizens can have a quality life and an opportunity to love with ease,” he said, while reaffirming the targets fixed by him for India’s 75th anniversary of Independence in 2022.The PM also cited international reports to claim that 5 crore people had been pulled out of poverty in the last two years.“We want to move ahead. We cannot accept stagnation, we cannot be standstill and it is not in our nature to bend before anybody. This country will neither come to a standstill, neither will it bend and nor will it get tired. We have to achieve greater heights, we have to keep moving ahead,” Modi said. Summarise this report in a few sentences.
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he said the country was constructing twice the highways and four times more houses in the villages under him. he also announced the launch of his signature medical insurance scheme, named Pradhan Mantri Jan Arogya Abhiyan. he said the country was now the sixth-largest economy on which the world places considerable hope. he said the country was constructing twice the highways and four times more houses in the villages under him.
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Mining money and doing so consistently is an art. In fact, it requires you to master a set of quick formulas. To be sure, this is no rocket science. A small step in the right direction is all that you need to stay wealthy.Money continued to multiply on Dalal Street in January 2018 as benchmark stock indices BSE Sensex and NSE Nifty soared 6 per cent. That's on top of a rally of 28 per cent in 2017.But the worry is valuations are not backing up and domestic equities may run into volatility down the road.Ramesh Bukka, co-founder and Director, Entrust Family Office Investment Advisors, said, “Current market valuations on a forward basis are similar to the ones seen in 2007. While 10 years ago, markets soared on the back of high economic growth, this time, it is on factors like TINA, FOMO and anticipated earnings recovery.”TINA stands for ‘There Is No Alternative’ while FOMO means ‘Fear of Missing Out’.With the first month of the New Year already behind us, here are five tips that can help you make the most of the remaining space.Over the last two years, there are two segments that have seen both time and price correction. These would be the IT and pharma sectors. With growth expectations getting reset, stocks in both sectors have corrected reasonably, giving investors a good opportunity to invest with a 3-5 year view.“While being contrarian requires a lot of patience as valuation re-rating may take time, the trades turn very profitable over a cycle. Until a few months ago, IT as a sector was nearly 25 per cent cheaper than the Nifty with higher dividend and free cash flow yields making it a perfect contra bet in an election year,” said Bukka.Rakesh Tarway, Head Research, Reliance Securities, said, “Pharma and IT sector as a whole are available at very reasonable valuations. Within pharma, smaller companies with lower legacy exposure to USA market and specialty products have better chance of outperformance. Similarly in IT, midcap IT companies in niche areas are delivering earnings growth in proportion to valuation. Companies in this space are also likely to do well.”Unlike 2007 when the economy chugged along and markets were expensive across the board, 2018 could well be a year where investors can make upsides from investing in companies that will deliver earnings acceleration. Take metals, for instance. Stocks in this sector delivered spectacular gains over the last two years when metal prices bottomed out in 2016 and started moving up from thereon.“This year, one of the themes is likely to be capital goods on the back of capex revival,” added Bukka.Margins of domestic steel mills are also on the upswing. Experts expect domestic steel mills to report very strong numbers in Q4 FY18. “We are raising our EBITDA estimates by 10-15 per cent for FY19 and rolling over our target price to FY20E earnings. JSPL and NMDC are our top picks. We continue to like JSW Steel,” Motilal Oswal said.With ever-changing and dynamic markets, one needs to ensure the investment portfolio is periodically reviewed. If certain funds, stocks or investment tools are not giving the desired result, one must look at making an appropriate switch. “For best effectiveness, one must do quarterly review of the portfolio to ensure best returns on investment. Investments which are not giving optimum returns must be replaced with those with a better track-record. Consulting an advisor can help one in planning better and executing the review of portfolio effectively,” said Brijesh Parnami, Executive Director and CEO, Essel Wealth Zone.While 2013-14 was a great entry opportunity for all investors, the rally over the last couple of years has resulted in valuations expanding significantly and thereby, value getting priced out of the market. Market experts say this year, investors buying largecap stocks quoting at relatively lower valuation can benefit as incremental flows from institutional investors may now follow an approach of relative value hunting.“In bull markets, when leading stocks in different sectors get overpriced, action moves from absolute value to relative value,” Bukka reasoned.G Chokkalingam, founder, Equinomics Research and Adisory, is upbeat on beaten-down largecaps as well as select defensive stocks in the ongoing calendar year.A rupee saved is rupee earned. One must revisit the ongoing housing, personal or car loans that one is paying up. After evaluating the interest rates and industry standards, one can switch or refinance as suitable. “With newer policies and housing finance companies coming into the market, competitive rates are easy to find. Hence if you are paying higher interest, it is advisable to review your debt and make alterations to your advantage,” said Parnami. Summarise this report in a few sentences.
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a small step in the right direction is all that you need to stay wealthy. domestic equities may run into volatility down the road. TINA stands for ‘there is no alternative’ while FOMO means ‘fear of missing out’. pharma and IT sectors have seen both time and price correction. pharma and IT sectors are also likely to do well.
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Mumbai: The Securities and Exchange Board of India ( Sebi ) allowed exchanges to start commodity trading an hour earlier to increase participation of different stakeholders, the market regulator said in a statement on Friday. The commodity markets can open at 9 am local time (0330 GMT), instead of 10 am now, the market regulator said. The closing time for agriculture commodities has also been extended by 4 hours to 9 pm, it said. The commodity exchanges had requested market regulator to consider extending the trading hours considering the influence of overseas market on local prices. This story has been published from a wire agency feed without modifications to the text. 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 commodity markets can open at 9 am local time (0330 GMT), instead of 10 am now. the closing time for agriculture commodities has also been extended by 4 hours to 9 pm. the commodity exchanges had requested market regulator to consider extending the trading hours considering the influence of overseas market on local prices. the commodity markets can open at 9 am local time (0330 GMT), instead of 10 am now.
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we are focusing on some catalyst changes and triggers in ICICI Securities. We think levels of 650 are possible in the coming 4-6 months for this 50% ROE and 50% operating margin broking Platform Company, Pritam Deuskar, Founder of Wealthyvia.com, said in an interview with Moneycontrol’s Kshitij Anand. Edited excerpts: Q) A volatile week for Indian markets as Nifty retested support at 11200 and then bounced back. What led to the price action on D-Street in the week gone by? A) After a rally of 4000 points on Nifty, some correction can’t be ruled out. The main reason for volatility was the delay in the vaccine trials, Crude going below $40/bbl and NASDAQ tech stocks correction.Large caps are trading well above their 5-Year Average multiples and contribution to rally by top 3-4 stocks is way higher than others. The new multi-cap norms have been introduced last week which will also have their effects though there is a timeline for changes to happen. Q) Where should investors place their bets now? A) Companies having promoter integrity, high sector tailwinds, sales and profit growth sustenance, margins improvement are must to have which is what our 5GCPM framework focuses upon. So there will be such companies going to be picked by fund managers. Bulk drug and API companies like Aarti drugs gave us 3 times returns. Now, we are focusing on some catalyst changes and triggers in ICICI Securities. After the launch of the prime plan subscription, a new set of revenue has come. Also, the company has moved beyond ICICI Bank account compulsion. Also plans to sell other company health insurance. Account opening has become online and easier. Whenever a company goes cross-platform and doesn’t restrict its products on just one type, it rewards business well. On trustworthiness, ease of access, and customer service most investors would rank it as no 1. With 48 lacs plus customer base 65% plus of which at least 5-year-old shows is that discount broking could not do much to its market share. Recently it launched the US investing platform too which is a new product and territory as per our 5GCPM growth and practicability. We think levels of 650 are possible in the coming 4-6 months for this 50% ROE and 50% operating margin broking Platform Company. Q) What is your call on markets for the coming week? Which are the important technical levels that one can track? A) Horizon for any stock as an investment should be at least 2 years. There can be corrections in Nifty 5-7% too from 11500 but not necessarily all stocks can correct. After each great rally, some breathing has to happen. It should not bother an investor as long as it does not have very sharp deep fall possibilities with some great worries and uncertainties. There are specific opportunities that can keep on rising like in 2015, where Nifty had a good correction, but we still had other themes such as tyre stocks, auto ancillaries, plastics, or some high growth branded consumptions doing much better. Recovery of the economy can be slower than earlier anticipated especially in the emerging markets space except for China and the time frame where viruses hit any country is different. Q) A mixed performance was seen from the Small & Midcap space in the week gone by. Small-cap stocks got some momentum going while midcaps recorded some profit-taking. What is your view on the broader markets? A) With multi-cap allocation policy change for mutual funds, it's bound to cause some shift towards small-caps and a little bit towards midcaps. Some of the multi-caps have mostly large-cap high allocation. Though there is time to make adjustments over the next 3-4 months. This will certainly help a broader market than just large-cap concentration. As we said in our last discussion answers, small and midcap are preferable over large caps now. Small and midcap indices have outperformed the large caps by a very large extent in each come back of markets in that particular period. Summarise this report in a few sentences.
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ICICI Securities is focusing on some catalyst changes and triggers. we think levels of 650 are possible in the coming 4-6 months. a major factor in the rally was delay in vaccine trials. a major factor in the rally was the NASDAQ tech stocks correction. a major factor in the rally was the 'discontinuation of the syria crisis'
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Amid Boardroom Feuds, Spotlight Falls on Women As more women take up senior leadership roles in India Inc, their visibility in boardroom battles is also rising. In a clear break from the past, women are playing key roles in several ongoing boardroom conflicts, or family disputes that may extend into the boardroom, reflecting the rise in the number of women in positions where they can have their say. Tesla Ready to Drive in up to $2B, But With Riders US electric carmaker Tesla is willing to invest up to $2 billion for setting up a local factory if the government approves a concessional duty of 15% on imported vehicles during its first two years of operations in India. Summarise this report in a few sentences.
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women playing key roles in boardroom conflicts, or family disputes. rise in visibility in boardroom conflicts reflecting the number of women in positions. Tesla willing to invest up to $2 billion for setting up a local factory. government approves 15% duty on imported vehicles during first two years of operations. if government approves, Tesla will invest up to $2 billion for setting up local factory.
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New Delhi: Countries should take steps to speed up the recovery process as they overcome the Covid-19 health crisis, the World Bank said in its Global Economic Prospects report , which was partly released on Tuesday.Apart from short-term measures to address the health emergency and core public services, the multilateral development bank advised countries to focus on comprehensive policies that boost long-term growth and improve governance and business environment.“The scope and speed with which the Covid-19 pandemic and economic shutdowns have devastated the poor are unprecedented in modern times,” said World Bank group president David Malpass. “Current estimates show that 60 million people could be pushed into extreme poverty in 2020.”The report called for targeted stimulus measures since economic resilience of many countries will depend on their ability to build and retain more human and physical capital during the recovery.India is opening up after a lockdown of about two months. The government has announced a ₹20 lakh crore package to counter the economic impact of the coronavirus outbreak and the lockdown. Analysts have said more is needed to get the economy back on track.The latest World Bank report highlights the importance of allocating new capital toward sectors that are productive in new post-pandemic structures. “To succeed in this, countries will need reforms that allow capital and labor to adjust relatively fast—by speeding the resolution of disputes, reducing regulatory barriers, and reforming the costly subsidies, monopolies and protected state-owned enterprises that have slowed development,” Malpass said in his foreword to the report.According to the bank, the pandemic will have a lasting damage on economies through lower investment, erosion of physical and human capital, and a retreat from global trade and supply linkages.“When the pandemic struck, many emerging and developing economies were already vulnerable due to record-high debt levels and much weaker growth,” said Ceyla Pazarbasioglu, group vice president for equitable growth, finance and institutions at the World Bank, emphasising the impact on emerging economies.In its South Asia Economic Focus report in April, the World Bank had projected India’s growth at 1.5-2.8% in FY21 and projected the fiscal deficit to widen to 9% of GDP.“During the mitigation period, countries should focus on sustaining economic activity with targeted support to provide liquidity to households, firms and government essential services.” Summarise this report in a few sentences.
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the world bank says countries should focus on comprehensive policies that boost long-term growth. the scope and speed of the covid-19 pandemic and economic shutdowns have devastated the poor are unprecedented in modern times. the world bank says the pandemic will have a lasting damage on economies through lower investment, erosion of physical and human capital. the world bank has also warned that the world's financial crisis could lead to a global financial crisis.
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The crisis-ridden Indian residential real estate market is showing some signs of revival. Developers, who were just focussed on expansion, have now realigned their priorities on construction and completing held-up projects. Unsold inventories have started reducing. Santosh Kumar, Vice Chairman at ANAROCK Property Consultants, tells Business Today's Goutam Das about the genesis of the crisis and why consumer confidence may be making a comeback now. Edited excerpts: How did the current crisis in Indian real estate begin? India was a distance away from the global financial crisis of 2009. We survived till 2011. Everyone had a lot of money - there was liquidity. Everyone started acquiring land parcels as if parcels are going to be over. Every developer ventured into cities where they didn't have strength. People from the West went to the South. The major impact was on developers in the North. Land is a state subject. Unless you have strength in that particular market, it is going to be an expensive proposition. You need to liaison with the government, and the approval authorities. Developers got stuck. In some cases, developers couldn't get the title of the land. In many cases, agricultural land had to be converted. There is a history you need to verify. Many went with slum acquisitions in the West. Liquidity started impacting. Projects started getting delayed. The focus was not on construction, but expansion. Consequently, the consumer's confidence started declining. It led to a stage where there was huge supply in under construction property. That began a downturn in the realty sector. Since 2012 onwards and till 2017, the market was very apprehensive. Policy changes happened in this period. NBFCs started helping the developers by giving them debt but at a high cost. That also impacted the market. The liquidity position of the developer started getting worse because sales were not happening. Sales is the easiest source of cash flow. The focus was less on construction - it was more on cleaning up the land which was stuck. They were raising more funds. They had to pay salaries. So, there was no income from sales while there were only outflows. Do you sense a revival this year? Developers have started focussing on construction. After construction, they deliver, and then raise funds. That's how the revival started. With RERA, the customer is now confident. There are some positive indications. There is demand for completed projects. Unsold inventories have started reducing. This will push developers to launch projects in the near future. Has the demand mix started correcting? 90 per cent of the demand is for apartments below Rs 1 crore and this supply used to be skewed in many markets... When the market was buoyant, everyone wanted to construct larger houses. There was no real trend on the price. The size and price both went up - beyond Rs 2-2.5 crore. But there was always a customer in the next segment not targeted by most. It could be because of local laws - in Haryana, for instance, you need a certain density - because of density norms, you cannot construct smaller houses. The ticket sizes therefore went beyond the budget. Now these laws have changed. People have now realised where the demand is. So developers have started re-launching their projects or re-modification of size. There is a huge demand in the Rs 60 lakh-1.8 crore segment. There is also a demand for properties in the Rs 25-45 lakh category. Will prices firm up anytime soon? If demand is more than supply, prices will firm up. It has been constant for the last two-three years. Except Mumbai, you will not see much of a price appreciation in the near future - at least for 1-1.5 years. Which is why this is the right time to buy house. Summarise this report in a few sentences.
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crisis-ridden Indian residential real estate market showing signs of revival. developers realigned their priorities on construction and completed held-up projects. after construction, they deliver, and then raise funds. consumer confidence may be making a comeback. a new era of'sea-change' is sweeping the country. a new era of'sea-change' is sweeping the country.
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Apple launched its most affordable iPhone on Wednesday. You know, the first major follow up to the cute and gutsy iPhone SE, in almost 4 years that we’ve been hearing rumours about all this time. We all knew it was coming, though with the Novel Coronavirus outbreak, there was every chance it could have been delayed further. We also had a rough idea about what to expect from it. Now that it’s here, well, it’s very much the same deal — with a few surprises thrown in here and there. The biggest surprise comes in the form of branding. Unlike countless reports leading to D-day, Apple isn’t calling it the iPhone 9 or iPhone SE 2. It’s keeping it simple, calling it just, the iPhone SE — again! Just like the original, the iPhone SE in 2020 is also designed for developing markets — including India — with a price tag that’s relatively more accessible than any other new (or old) iPhone today. So more people will be able to afford it. It comes with a few caveats, including a size that might not be the best fit for this content hungry generation that likes to feed on large(r) screens, but Apple will be looking to cut through those waters on the back of its ‘star’ brand value. An affordable iPhone is still an iPhone, after all. You can expect it to be solid and reliable. iPhone SE (2020) specs, features and everything to know The original iPhone SE was an iPhone 6s trapped inside the body of an iPhone 5s. Apple is doing something similar with the sequel. The iPhone SE in 2020 is an iPhone 11 trapped inside the body of an iPhone 8. It has a design and form factor that’s similar to the iPhone 8 while on the inside, it boasts of the same core hardware as the iPhone 11’s. So, we’re basically looking at a 4.7-inch IPS LCD iPhone with a glass and metal body that’s powered by Apple’s latest and greatest A13 Bionic processor. Let’s start with the design. The iPhone SE (2020)’s design is a throwback to the iPhone 8 from 2017. It’s made of glass and metal. It has the same straight lines and rounded top and bottom, and yes, there are sizable bezels all around the screen. There’s also an all-familiar Touch ID ‘physical’ fingerprint scanner, in an all-familiar position below the main display. Speaking of which, the iPhone SE (2020) has a 4.7-inch HD Retina display, like the iPhone 8, with Apple’s True Tone technology and Haptic Touch. Under the hood, the iPhone SE (2020) has Apple’s A13 Bionic processor. As is usually the case, Apple isn’t specifying the amount of RAM, although it’s bumping up the storage in the sequel — the iPhone SE (2020) will be available in three configurations, 64GB, 128GB, and 256GB. Expandable storage is not an option, like all iPhones. Like the iPhone 8, the iPhone SE (2020) doesn’t have a headphone jack either. It still charges via Apple’s proprietary Lightning connector. Battery capacity is not known though Apple claims up to 13 hours of video playback on a single charge. The iPhone SE (2020) does support 18W fast charging. There’s also wireless charging. The iPhone SE (2020) is also IP67-certified for water and dust resistance. The iPhone SE (2020) has the same 12MP main camera with f/1.8 aperture, Smart HDR and optical image stabilization as the iPhone 11. On the front, it has a 7MP camera. iPhone SE 2020 India price and availability The iPhone SE (2020) will be available in black, white and (PRODUCT)RED at a starting price of Rs 42,500. This is for the 64GB variant. The iPhone SE (2020) will also be available in 128GB and 256GB options for Rs 47,800 and Rs 58,300 respectively. Exact date of availability is yet to be announced. [auto_also_read title=”Apple launches new iPad Pro, Magic backlit keyboard with trackpad: Specs, India price and everything to know” url =”https://www.financialexpress.com/industry/technology/apple-launches-new-ipad-pro-magic-backlit-keyboard-with-trackpad-specs-india-price-and-everything-to-know/1902496/” ][/auto_also_read] Summarise this report in a few sentences.
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the first major follow up to the cute and gutsy iPhone SE in almost 4 years that we’ve been hearing rumours about. the biggest surprise comes in the form of branding. the original iPhone SE was an iPhone 6s trapped inside the body of an iPhone 5s. the iPhone SE in 2020 is an iPhone 11 trapped inside the body of an iPhone 8.
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The NDA government has thought up a novel way to crank up consumer spending in the country, which logically should give a leg-up to the insipid demand in the economy and eventually set the growth engine in motion. On December 4, the Union Cabinet cleared the Social Security Code Bill, 2019, which, among other things, offers the option to millions of employees in organised sectors to reduce their share in the provident fund contribution and thereby increase their take-home pay. At present, the employee’s contribution to provident fund is fixed at 12 per cent of basic salary. The employer also provides a matching amount to the fund, a portion of which goes to the pension corpus. Though the contents of the code are not in the public domain, an Economic Times report suggests that the code will have a provision whereby the employee contribution to provident fund (PF) could be brought down below the 12 per cent threshold. However, by how much this contribution can be lowered will only be worked out after the Bill gets the approval of Parliament. The employer’s contribution to the PF will, however, remain at 12 per cent. Some experts are of the opinion that the rules may not be universal for all sectors and the government may allow such a reduction in certain sectors such as MSME, textiles, and start-up firms. The Bill, which is likely to be tabled in Parliament soon, forms the last of the four codes that the government is trying to formulate as part of its ambitious labour reforms. The other three codes are: the Code on Wages, the Occupational Safety, Health and Working Conditions Code and the Industrial Relations Code. While the Code on Wages was passed by Parliament in August, the Industrial Relations Code was introduced in the Lok Sabha in late November. The Occupational Safety, Health and Working Condition Code was introduced in the lower House in July, but was referred to the standing committee of Parliament in October. The committee’s report on the code is awaited. The Social Security Code will incorporate eight central laws — Employees' Compensation Act, 1923, Employees' State Insurance Act, 1948; Employees' Provident Funds and Miscellaneous Provisions Act, 1952; Maternity Benefit Act, 1961; Payment of Gratuity Act, 1972; Cine Workers Welfare Fund Act, 1981; Building and Other Construction Workers Cess Act, 1996, and Unorganised Workers' Social Security Act, 2008. Other than tweaking the employee’s contribution to the PF, the Social Security Code proposes several other key changes. According to the Economic Times report, the Bill proposes that fixed-term contract workers will be eligible for gratuity on a pro rata basis. This suggestion is linked to the Industrial Relations Code which had lobbed the fixed-term employment proposal. While the Gratuity Act needs to be changed for this purpose, as we have noted earlier, the calculation of gratuity for a fixed-term worker may turn out to be a tough task. The Bill, however, has spiked the move to give subscribers to the Employees’ Provident Fund Organisation (EPFO) an option to switch to the National Pension System vis-à-vis the Employee Pension Scheme under the EPFO. The labour ministry has argued that the current arrangement provides multiple benefits such as higher rate of return and exempt-exempt-exempt status to funds invested in the EPFO. The ministry had also decided to retain the existing autonomy of the EPFO and the Employees’ State Insurance Corporation, rejecting the proposal to corporatise them. The Labour Ministry’s stand suggests that many within the government are perhaps not very comfortable with market-linked returns for superannuated people and they prefer to retain control over how the PF corpus is deployed and the interest it earns. When the nodal ministry for the PF money is of such a view, it is a bit strange that the Bill on Social Security Code is pushing for a cut in the employees’ contribution to the PF, which will enhance present spending but lower their retirement corpus. In a country where household investment culture is not very vibrant as yet, the contribution to the PF is some sort of a forced saving that helps employees build their nest egg. There is another vital point. According to reports, annual accruals to the EPFO by way of statutory contribution of employee and employer are to the tune of Rs 1.3 lakh crore per year. So by reducing contribution of employees by two or three percentage points in some sectors will lead to less than Rs 3,000 crore per annum increase in spending. This is a meagre amount to boost consumption at a time when the GDP has slowed to a six-year low. While every Indian has a role to play in the nation-building process, the government must ensure that the future of millions of employees is not sacrificed while trying to ratchet up the current growth rate of the economy. Abhijit Kumar Dutta is a freelance writer. Views expressed are personal. Summarise this report in a few sentences.
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the social security code bill, 2019, offers the option to millions of employees to reduce their share in the provident fund contribution. the employer also provides a matching amount to the fund, a portion of which goes to the pension corpus. the code will include eight central laws — Employees' Compensation Act, 1923, Employees' State Insurance Act, 1948, Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
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Although the market has been heavily hit due to the Covid-related disruptions, it has given footwear maker Sreeleathers an opportunity to work on its digital platform for sales growth, says director Rochita Dey. In an interview with FE’s Mithun Dasgupta, Dey said by diversifying its product mix, the company has curated a sustainable product line for consumers who look for vegan raw materials. Excerpts: How has the organised footwear market been impacted due to the Covid-related disruptions? Even before the countrywide lockdown, the market was dwindling. And post the rise in Covid-19 cases, domestic retail footwear market has been hit pretty hard. I think even for the rest of the year we are still going to experience some shrinking in markets, not just footwear, as general consumption has come down. Need has disappeared. But, I think this is temporary. It is very hard to say how long this situation would last, but at least for another year all organisations and brands will have to pivot their business models accordingly to survive. After the countrywide lockdown was lifted, is the company witnessing some demand growth? We have not seen growth as compared to last year, but if you are asking since March, yes we have seen growth. But that is because we have made some changes in the organisation. We have had to make some strategic changes in terms of the products and services offerings. We were primarily a footwear and accessories brand, but now we have also started offering certified personal protective equipment (PPE), N95 masks as well as washable and reusable masks. Earlier, we had always focussed on our offline stores. But now as the market has been heavily hit, it has given us an opportunity to work on our digital platform for growth. Now, we are seeing a rise in our online sales through our website. I do think that convenience is the way to go forward. Now, it is all about home deliveries — whether it’s food or apparel. For any sort of consumption, people are going to be a lot mindful because most people have educated themselves about the current situation. Going forward, are you looking at more diversifed product mix? We have already launched a sustainable product line, using polyurethane (PU) as raw materials. Sreeleathers has always been a synonymous for leather products, and we already have access to consumers who are loyal to the brand. By launching this new product line, we want to spread awareness that there are other alternatives because nobody comes to buy one shoe. With the trend of fashion, everybody has separate shoes for different purposes. But, with the rise in population, it is most important for us to be conscious about what would be the impacts of our consumption on the environment. We are not discontinuing our original product offerings of genuine leather products, because there is a market. And, there are people who are looking for the extra luxury and they want that breathable raw material. I cannot eliminate that. But, we also cater to those consumers who are really conscious about their consumption, who are looking for sustainable productions, who are looking to support local artisans, and who are looking for vegan raw materials. For them especially we have curated this product line. Also, in the process we hope that we educate some new consumers as well about the importance and significance, especially now, of lowering every individual’s carbon footprint. How is the production cost of PU made products comparable to that of the genuine leather made products? Definitely PU is cheaper, because sourcing leather is not only expensive but you are also wasting a lot of water to feed the cattle and process the leather. As the PU is man made, not only it is cheaper but also it is a lot more sustainable as you are not wasting water. Some states are already struggling with ground water reduction. Are prices of the newly-launched products cheaper compared to the genuine leather products? Yes, prices of PU made shoes actually depend on the make of the shoes. Our motive have always been as reasonable as the prices can be without compromising the quality. However, pricing has never been our primary objective. Our objective has always been focussing on quality. We always have price-efficient products. Summarise this report in a few sentences.
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footwear maker has curated a sustainable product line for consumers who look for vegan raw materials. domestic retail footwear market has been hit hard due to the countrywide lockdown. after the countrywide lockdown was lifted, is the company witnessing some demand growth?. after the countrywide lockdown was lifted, is the company witnessing some demand growth?. a spokesman for the company said: 'we are seeing a rise in our online sales through our website'
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New Delhi: The President of India, on Friday, has promulgated the Ordinances approved by the cabinet last Wednesday. These ordinances are aimed at giving a boost to rural India for farmers engaged in agriculture and allied activities.Agriculture minister Narendra Singh Tomar has asked all chief ministers of states to implement the provisions and create an ecosystem for farm growth.He stressed the need for their continued support in the development and growth of the agriculture sector in the new reformed environment.“The two ordinances - The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020 and the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020 will create an conducive ecosystem private investment in agriculture,” said a senior agriculture ministry official.The Farmers’ Produce Trade and Commerce (Promotion & Facilitation) Ordinance 2020will provide for the creation of an ecosystem where the farmers and traders enjoy the freedom of choice relating to sale and purchase of farmers’ produce which facilitates remunerative prices through competitive alternative trading channels.“It will promote efficient, transparent and barrier-free inter–State and intra-State trade and commerce of farmers’ produce outside the physical premises of markets or deemed markets notified under various State agricultural produce market legislations. Besides, the Ordinance will provide a facilitative framework for electronic trading and matters connected therewith or incidental thereto,” the official said.The second ordinance related to corporate farming - The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance 2020 - will provide for a national framework on farming agreements that protects and empowers farmers to engage with agri- business firms, processors, wholesalers, exporters or large retailers for farm services and sale of future farming produce at a mutually agreed remunerative price framework in a fair and transparent manner and for matters connected therewith or incidental thereto.“Farmers can engage with large processors for minimum one crop season and maximum to five years. The provisions in the Ordinance are farmer-friendly aimed at safeguarding the interest of the farmers,” the official said.The President also promulgated an Ordinance to amend Essential Commodities Act. Through this Ordinance, the government has taken out agricultural commodities like cereals, pulses, oilseeds, oils, onions and potatoes out of the essential commodities list. The amendment to the EC Act will allow clamping of stock limits on agricultural commodities only under “very exceptional circumstances” like natural calamities and famines.“Stock limit would be applicable if the retail price of horticulture commodities rise by 100% and that of non perishable food stuffs increase by 50% over the price prevailing immediately preceding a year or average retail price of last five years, whichever is lower,” the official said. Summarise this report in a few sentences.
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the president of india promulgated the Ordinances approved by the cabinet last Wednesday. these ordinances are aimed at giving a boost to rural India for farmers engaged in agriculture and allied activities. agriculture minister Narendra Singh Tomar has asked all chief ministers of states to implement the provisions and create an ecosystem for farm growth. he stressed the need for their continued support in the development and growth of the agriculture sector in the new reformed environment.
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New Delhi: In what may further exacerbate India’s stressed power project situation, solar capacities totaling ₹ 28,000 crore face viability risk due to imported solar modules becoming costlier, with the continuous fall in the rupee, ratings agency Crisil Ltd said on Monday. Most solar power developers in India have been sourcing solar modules and equipment from countries such as China, where they are cheaper. This has resulted in domestic manufacturers accounting for only around 10% of the market despite India having an ambitious 175 gigawatt (GW) clean energy target by 2022, of which 100GW is to come from solar projects. “Nearly half of the solar power capacities under implementation worth ₹ 28,000 crore face viability risk because of the continuous fall in the rupee, which has made imported solar modules costlier and increased the cost of setting up solar plants. These include 5.5GW of projects bid out in the past nine months at very low tariffs of ₹ 2.75 per unit or less. These projects are in the early phase of implementation and are unlikely to have bought solar modules, orders for which are typically placed 9-12 months after bids are won," the Crisil Ratings report said. “Our analysis shows that for every 10% drop in the rupee, the cost of setting up a solar power plant increases by ₹ 30 lakh per MW, assuming other factors remain unchanged," Subodh Rai, senior director, CRISIL Ratings, added in the statement. The rupee being Asia’s worst performing currency of the year has put Indian developers in a difficult spot. India achieved a record low solar power tariff of ₹ 2.44 per unit in May 2017. India has also imposed a safeguard duty on solar cell and module imports from China and Malaysia. A majority of Indian developers have been placing orders with Chinese manufacturers because of their competitive pricing. For China’s solar module manufacturing capacity, estimated to be around 70 GW per year, the major markets are the US, India and China itself. “What was anticipated for bidding at low tariffs and has also worked for the developers is the fall in module prices. The module prices have fallen by 17% for these projects from 0.30 dollar per watt at the time of their bidding to around 0.25 dollar per watt at present (a benefit of nearly ₹ 34 lakhs per MW). But the arithmetic did not countenance a sharp depreciation in the rupee to more than ₹ 73 per dollar, which has wiped off the gains from lower module prices. That, in turn, will compress the debt servicing cushion available for these projects," the Crisil report said. This assumes importance for the Indian power sector given that it is one of the highly stressed sectors with close to ₹ 1 trillion of loans having turned sour or been recast. Also, lenders have an exposure of around ₹ 3 trillion to these assets in the backdrop of slow electricity procurement over the last three to four years. According to RBI, the total outstanding loans of scheduled commercial bank to the power sector including renewable stood at ₹ 5.65 trillion as on March 2018. “Also, developers typically do not hedge the exchange rate before placing orders for modules," the Crisil report added. India, the world’s third-largest energy consumer after the US and China, is running the world’s largest clean energy programme. However, concerns around India’s emerging green economy remain due to the weak credit quality of off-takers such as state-owned distribution companies. “If the rupee remains weak and safeguard duty is also levied, project costs would dart up by as much as 20%. In such a situation, viable tariff for future projects will have to be higher by 30 paise per unit," said Manish Gupta, director, CRISIL Ratings in the statement. India’s ministry of new and renewable energy is also planning to cap India’s solar power tariffs at ₹ 2.5 and ₹ 2.68 per unit for developers using domestic and imported solar cells and modules, 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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solar power capacity totaling 28,000 crore face viability risk. most solar power developers in india have been sourcing solar modules from countries such as China, where they are cheaper. domestic manufacturers account for only around 10% of the market. india has an ambitious 175 gigawatt (GW) clean energy target by 2022. of which 100GW is to come from solar projects.
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live bse live nse live Volume Todays L/H More × Nitin AgrawalMoneycontrol Research FIEM Industries (FIEM) is a lighting solutions provider to automobiles catering to two-wheeler (2W) segment. With its market leadership, marquee clients, focus on developing in-house technologically advanced products and adoption of LED-based products, the company should witness decent earnings traction despite the drag from LED Luminaries business. The business should remain unaffected by EV disruption. Also, the stock is trading at reasonable valuations that beckons investor’s attention. The business – provides end to end lightening solutions FIEM is one of the leading manufacturers of automotive lighting solutions and has been the front-runner as it was the first one to introduce LED lights for two-wheelers. In addition to automotive lighting solutions, the company also manufactures rear view mirrors, sheet metals parts and plastic components. The company has also ventured into LED luminaries for indoor and outdoor applications and Integrated Passenger Information system (IPIS) for railways and buses. Strong clientele The company generates most of its business from two-wheeler segment of the automotive industry. FIEM boasts of having marquee clients in its kitty and services almost 90 percent of OEMs (original equipment manufacturers) in India. Apart from this, the company’s products have been well accepted in foreign markets and it is the only Indian company supplying lighting products to Harley Davidson and Honda Japan. The company also has formidable clients in LED luminaries and IPIS system. Indian Railways is the big customer for the company in IPIS systems. DTC Buses, Haryana Roadways, U.P. Roadways, Gujarat State Road Transport, Delhi Fire Service, CRPF, Hospitals & Public Places are other notable clients within IPIS space. Well placed to ride on scooters – very high growth segment In terms of percentage of automotive segment revenues, Honda Motorcycle is the largest client with 45 percent share followed by TVS Motors with 24 percent share. These two customers are the strongest players in fast-growing scooter segment within 2W space. This takes the company in sweet-spot to take the advantage of upcoming wave of growth in scooter segment. Ahead of competition – in-house R&D FIEM has strong in-house research and development (R&D) center and has become India’s First NABL Accredited Lab for Testing of Automotive Lamps. Through the strong focus on R&D, the company was the first to supply LED-based lamps for a two-wheeler model. In fact, unlike other players in the industry who have sourced technology from outside and pay the royalty, FIEM does not have that obligation, which positively impacts its financial performance. LED – a game changer The increasing adoption of LEDs by the original manufacturers would offer great opportunities for FIEM as LEDs require technical expertise and the company’s in-house R&D supports it. As per the management, LED products are expensive compared to the conventional products and earn better margin for the company. The wider adoption of LEDs unlocks huge potential for the company both in terms of sales growth and margin expansion. The management indicated that despite higher prices, the OEMs are willing to shift to these products as these are more efficient products and improve the styling appearance of vehicles. While the government’s decision to make ‘Automatic Headlamp On (AHO)’ in two-wheelers from 2017is not the energy efficient way, LED based DRLs (Day Running Lights) are more energy efficient. Consequently, this has been adopted by a few models. Increasing adoption of LED DRLs in other models would unlock huge potential for the company. Also, BS VI norms to be implemented by 2020 would require vehicles to be more energy efficient which would lead to the adoption of LEDs as a lot of energy would be saved by those lighting products. Unaffected by move towards EV FIEM is likely to remain unaffected by the EV disruption, going forward, as LED lighting products, being more energy efficient, are going to be used in EVs. The moot question for investors is to know about the pain point of the company – LED Luminaries business? LED Luminaires – pain to continue India is still in nascent stage in terms of LED adoption and the industry is characterized by fragmented competition and low entry barriers. Energy Efficiency Services Limited (EESL), the nodal Indian agency actively propagating and implementing the replacement of conventional street lighting products with LED alternatives, provides a huge opportunity for the company. However, low entry barriers coupled with fragmented competition has resulted in a price war, thereby hurting the financial performance of the company. Fiem’s revenue from this segment has fallen by 51 percent in FY17 and EBITDA margin came in at around 5.2 percent. The management believes that it will take some time for the LED business to stabilize. We feel that on the back of adoption of LED lighting for automobiles even if the pain continues in LED luminaries, the overall financials will start looking up. Strong Financial performance except for FY17 The company’s net sales witnessed a growth of 24.1 percent compounded annually over a period of FY12-17 and its EBITDA and PAT recorded a growth of 21.7 percent and 16.2 percent over the same period. In FY17, however, the company had margin contraction because of the low EBITDA margin of LED luminaries segment. In terms of return ratios, RoE and RoCE average around 19.13 percent and 20.40 percent over FY12-17, respectively. In FY17, the company witnessed contraction in return ratios on the back of poor performance from LED luminaries business and higher liquidity in the Balance Sheet because of money raised through qualified institutional placement (QIP). Going forward, we expect the return profile to improve on the back of high margin LED lighting business. In terms of valuation, the company is trading at 21.3 and 16.0 times FY19 and FY20 projected earnings. Peer analysis Peer analysis suggests that the FIEM is currently trading at a discount compared to the average multiple of its peers. Follow @agrawant For more research articles, visit our Moneycontrol Research Page. Summarise this report in a few sentences.
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FIEM is a lighting solutions provider to automobiles catering to two-wheeler (2W) segment. the company should witness decent earnings traction despite the drag from LED Luminaries business. the company has also ventured into LED luminaries for indoor and outdoor applications and Integrated Passenger Information system (IPIS) for railways and buses. the stock is trading at reasonable valuations that beckons investor’s attention.
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Grant Thornton, which has conducted a forensic audit of IL&FS Securities Services Ltd (ISSL), has found what it alleged multiple operational lapses and high-value trade anomalies in the company’s transactions with a client, Allied Financial Services Pvt Ltd (AFSPL).In an interim report on the company that provides capital markets services, Grant Thornton said it identified 65 instances where intraday benefits totalling Rs 2,417.87 crore were extended to AFSPL, thereby increasing the risk for ISSL. Citing purported text messages among ISSL executives, the auditor said those indicated incorrect data were provided to exchange.ET has seen the interim report, which has been submitted to the National Company Law Tribunal ISSL, a subsidiary of Infrastructure Leasing & Financial Services (IL&FS), provided professional clearing services to AFSPL as per an agreement entered between the two in 2007.The government-appointed IL&FS board has lodged a complaint with the Mumbai Police against AFSPL and some others. Police officials said in all likelihood they would forward the complaint to the federal agencies that are already probing alleged irregularities at IL&FS and its group companies.Referring to the deal with AFSPL, Grant Thornton said: “It appears that such benefits were agreed by the then business development head … the head of futures and options (FNO) initially highlighted the risk, but he ultimately appears to agree with the strategy.”ISSL had sent disassociation notice to AFSPL in January this year. However, the forensic audit has allegedly found email exchanges that showed ISSL had opened its trading terminal for AFSPL to let the client roll over open position which were expiring that month. “Further, it appears that without adequate collateral in place, AFSPL was allowed to trade by ISSL,” it alleged.The report identified 27 instances where securities worth Rs 243 crore were withdrawn and Rs 242 crore were bought back by AFSPL on the same day. The auditor also found four alleged transactions worth Rs 735 crore where AFSPL had withdrawn securities on a weekend. “There were (also) half a dozen instances where securities worth Rs 101 crore were withdrawn and bought back in the same week,” the report said.“During our review of the email conversation between the employees of ISSL, it was noted that AFSPL was potentially allowed to execute trade on the stock exchange against the collateral which were not deployable at the exchange. Further AFSPL was also provided with intraday benefit for trading without receiving any collateral,” it alleged.“Based on WhatsApp conversation, it was noted that in certain instances, margin limit of AFSPL was increased without the corresponding inflow of collateral,” it said, adding that this was in violation of the rules of exchanges.The auditor has also found alleged anomalies in the onboarding process and KYC documents of AFSPL.Based on WhatsApp conversation among employees of ISSL, it was observed that a few of them were providing incorrect data to exchanges as well as HDFC Bank , the report said.The report quoted a message that the auditor said was retrieved from the phone of a former business development head. It reads: “We have to have long chat with comp officer today and seek his views on the current development. Shud seek his advice also. Frankly I feel very very worried. It’s mess, exch inspc, exch gaze, whistleblower letter, allied scam. Its a cocktail of disaster (sic).”In May, IL&FS had approached the Securities Appellate Tribunal (SAT) seeking annulment of all the trades that were under question. SAT ordered the National Stock Clearing Corporation to give a hearing to ISSL. As this didn’t happen, the company went to the Securities and Exchange Board of India and the Supreme Court. Last month, the top court directed the market regulator to hear the matter as it had investor interest and was related to stock exchanges. Summarise this report in a few sentences.
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forensic audit of IL&FS Securities Services Ltd (ISSL) has found what it alleged multiple operational lapses and high-value trade anomalies. it identified 65 instances where intraday benefits totalling Rs 2,417.87 crore were extended to a client, thereby increasing the risk for ISSL. the government-appointed IL&FS board has lodged a complaint with the Mumbai police against AFSPL and some others.
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Trade, Imports, Exports for MSMEs: MSMEs, which contributed nearly half of India’s exports in FY19, has welcomed the Reserve Bank of India’s (RBI) move on Wednesday to extend the time period from current nine months for exporters to receive payments on exports from buyers, particularly in Coronavirus affected countries. The RBI in a statement said that “in view of the disruption caused by the Covid-19 pandemic, the time period for realization and repatriation of export proceeds for exports made up to or on July 31, 2020, has been extended to 15 months from the date of export.” “Absolutely it will benefit MSMEs. This will help all exporters because, with the slowdown in demand and liquidity, buyers will take little more time to send back the remittances. It is a welcoming move and will help the export sector in tweaking their regulatory norms for realising the payments and looking into the lack of demand and liquidity challenges,” Ajay Sahai, DG and CEO, Federation of Indian Export Organisations told Financial Express Online. The longer repatriation period acts as a “marketing tool” as buyers would be more willing to buy products from you, Sahai added. However, in the current situation, it has more to do with the slow demand and lack of liquidity. The RBI noted that the extension will help exporters “realise their receipts, especially from COVID-19 affected countries within the extended period” and would provide “greater flexibility to the exporters to negotiate future export contracts with buyers abroad.” “This will necessitate analogous relaxations for benefits prescribed under the Customs and Foreign Trade Policy (particularly the MEIS scheme),” Gunjan Prabhakaran, Partner – Indirect Tax, BDO India told Financial Express Online. Also read: OYO, Byju’s, Zomato top startup funding in Q1 2020 even as Coronavirus drags down PE/VC deals by 36% Exporters have so far been required to ensure payments are received in foreign currencies to India for goods exported within nine months from the date of export. However, “in case of delay of payments, exporters have to explain the reason for the delay to the RBI. Sometimes they get an extension to get payments. In some cases, exporters are blacklisted as well. The six-month extension hence is a big relief for MSME exporters,” Rajiv Chawla, Chairman at MSME association IamSMEofIndia told Financial Express Online. Countries that have undergone mass quarantines and border closures or lockdown in cities according to multiple media reports include Russia, South Africa, New Zealand, the UK, Australia, European Union, Germany, France, Spain and more. “Exports are stuck in countries under lockdown. For instance, the goods exported are stuck at ports because of lockdown and so payment is also affected. And buyers are not able to receive goods even as they have stopped receiving orders,” added Chawla. Summarise this report in a few sentences.
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RBI extends time period for exporters to receive payments on exports from buyers. the extension will help exporters "realise their receipts, especially from COVID-19 affected countries" in the current situation, it has more to do with the slow demand and lack of liquidity. the extension will provide "greater flexibility to the exporters to negotiate future export contracts with buyers abroad"
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Sebi has sought details from mutual funds about their exposure to all NBFCs and housing finance companies, amid concerns over liquidity in the system, according to sources. In recent days, shares of Non-Banking Financial Companies (NBFCs) and housing finance companies have taken a beating against the backdrop of IL&FS group entity defaulting on its debt obligations, triggering fears of liquidity crunch. The Securities and Exchange Board of India (Sebi) has sent letters to mutual funds seeking details about their exposure to all NBFCs and housing finance companies, regulatory and industry sources said. The companies include DHFL and Indiabulls Housing Finance, they added. Mutual funds have significant exposure to these companies and NBFC companies as a whole. On Thursday, shares of NBFCs and housing finance companies tumbled up to 8.5 per cent on worries over liquidity. The scrip of DHFL declined nearly 5 per cent to close at Rs 290.15 while that of Indiabulls Housing Finance plunged over 6 per cent to end the day at Rs 937.20 on the BSE. Rating agencies — Crisil, Icra and Care — has re-affirmed the long-term credit rating of Indiabulls Housing Finance at the highest rating of ‘AAA’ with stable outlook, the company said in a filing to the BSE on Tuesday. IL&FS Financial Services, a group company of IL&FS defaulted on one of its commercial paper (CP) issuances due for repayment on Monday. This was the third default by the company. Earlier in the day, the Reserve Bank allowed banks to dip further into statutory liquidity cash reserves in a bid to ease a liquidity squeeze afflicting the nation’s money markets. The move by the central bank follows concerns over tight liquidity conditions and banks’ unwillingness to lend to NBFCs. Summarise this report in a few sentences.
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NBFCs and housing finance companies have taken a beating. IL&FS group entity defaulted on its debt obligations. scrip of DHFL and indiabulls Housing Finance fell nearly 5%. on tuesday, shares of NBFCs and housing finance companies tumbled up to 8.5%. scrip of DHFL declined nearly 5% to close at Rs 290.15.
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The current market rally has left market watchers and economists astounded. While the economy is on a downslide, Sensex and Nifty have been hitting all-time highs almost on a daily basis since mid-September. Sensex hit a fresh all-time high of 41,163 today rising 143 points compared to the previous close of 41,020. Nifty too clocked a record high of 12,157, gaining 57 points against the previous close of 12,100. The market rally started after FM Nirmala Sitharaman announced reduction in corporate tax rate to 22% per cent from 30% on September 20 this year. With the announcement bringing tax relief for India Inc, Sensex closed 1,921 points or 5.32% higher at 38,014 and Nifty ended 5.32% or 569 points higher at 11,274 that day. Intra-day, Sensex surged 2,285 points to 38,378 against previous close of 36,093 points. Nifty too zoomed 677 points to 11,381 against previous close of 10,704. Since then, the benchmark indices have been testing fresh highs. While Sensex has gained 5,037 points, Nifty has added 1,447 points taking into account today's close. Of 30 Sensex components, 12 stocks alone have contributed to over 88% of the gains during the period. Shares of HDFC, HDFC Bank, Reliance Industries, Kotak Mahindra Bank, IndusInd bank, ICICI Bank, Maruti Suzuki, SBI, Bharti Airtel , HUL, Bajaj Finance and Bajaj Auto have fuelled the rally in benchmark indices. Of 5,037 points gain on Sensex since September 20, these 12 stocks have added 4,437 points, translating into 88.10% contribution to the mega market rally on the key index. Infographic: Don't let Sensex fool you So what explains such huge rally in Sensex? With the economy reeling under a slowdown in last one year, investors have been looking to park their money in safe havens. Sensex and Nifty stocks which represent companies with healthy balance sheets and strong business models have become ideal destinations for their funds. Another factor for the shining performance of a majority of large-caps stocks can be understood from the reduction in the number of players in sectors such as aviation, media, non-banking finance and telecom. As a result, the surviving players have received huge rewards from the market for their robust business models and steady growth rates. Amid the ongoing NBFC crisis, Bajaj Finance has appeared unscathed. The leading NBFC firm logged a 63.11 per cent year-on-year (YoY) rise in net profit at Rs 1,506.29 crore for the quarter ended September 2019 compared to net profit of Rs 923.47 crore in the corresponding quarter last year. Total revenue from operations rose 47.95 per cent YoY to Rs 6,322.55 crore during the quarter under review. Subsequently, its stock has risen 70.13% during the last one year. Also read: RIL becomes first Indian firm to hit Rs 10 lakh cr market cap, share price hits all-time high Similarly, with other players facing tough time in the telecom sector, Bharti Airtel stock has gained 51.26% during the last one year. Its one-year gain surpasses 49.83% rise seen by the stock in last three years. However, when we dig deeper, we find that the rally is not broad-based. Mid cap and small cap indices are yet to join the party. From 12,703 on September 20, the BSE small cap index has gained 794 points to 13,497. In comparison, Sensex has risen over 5,000 points indicating huge investor interest in large cap stocks. The gains in the BSE mid cap index are also small when compared with rally in Sensex. The index managed to rise 1,775 points to 15,060 from the September 20 level of 13,285. Midcap and small cap stocks have been reeling under big losses during last two years. In fact, BSE Midcap index has lost 12.40% during the period. The small cap index is down 26% in last two years. Of late, mid cap and small cap stocks have seen a mild recovery from their two-year losses. While BSE small cap index has gained 6.70% in last three months, BSE mid cap index has risen 10.60% during the period. With Union Budget 2020 just two months away, the market might eye fresh highs from the current levels. The true growth potential of the stock market can be realised only when mid caps and small caps complete their recovery cycle and contribute to the rally in the broader market. By Aseem Thapliyal Summarise this report in a few sentences.
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Sensex and Nifty have been hitting all-time highs almost daily since mid-September. rally started after government announced tax cut on corporates. 12 stocks alone have contributed to over 88% of the gains. Sensex and Nifty are both gaining ground in the market. a majority of investors are looking to invest in safe havens.
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MORE STORIES FOR YOU ✕ Rupee settles 2 paise down at 75.58 against US dollar Forex reserves surge by $4.235 billion to $485.31 billion « 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 NEW DELHI: The rupee on Monday opened 28 paise down at 75.86 against the US dollar following weak domestic equity market as the government's stimulus package failed to revive confidence on Dalal Street.In the last few sessions, rupee has been consolidating in the range of 75 and 76 (Spot) as market participants were awaiting for more details on the stimulus package announced by the Prime Minister in his address to the nation.During the weekend Finance Minister Nirmala Sitharaman completed the announcement of the last leg of Rs 20 lakh crore economic package announced by Narendra Modi.On the domestic front, market participants will now be keeping an eye on the GDP number which will be released later next week. Global factors continue to remain in focus and could continue to provide trigger to the currency.“For the day, we expect the rupee (Spot) to quote in the range of 75.20 and 76.20,” brokerage firm Motilal Oswal Financial Services said.Pound continues to remain under pressure against the US dollar after Bank of England said during the weekend that the central bank is looking more urgently at options such as negative interest rates and buying riskier assets to prop up the country’s economy as it slides into a deep coronavirus slump.Economic numbers released from the UK too have been disappointing and that continued to keep the currency weighed down.On Friday, dollar recovered marginally from its lows despite data released from US showed consumer spending tumbled a record 16.4 per cent in April as the backbone of the US economy retrenched amid the coronavirus pandemic. On the other hand, industrial production contracted over 11 per cent in April compared to 4.5 per cent contraction in the previous month.The benchmark BSE Sensex traded 675 points or 2.17 per cent down at 30,422 in the early trade on Monday. Summarise this report in a few sentences.
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rupee closes 28 paise down at 75.58 against the US dollar. currency remains under pressure after bank of england said it is looking more urgently at options such as negative interest rates and buying riskier assets. benchmark BSE Sensex traded 675 points or 2.17 per cent down at 30,422. rupee is expected to quote in the range of 75.20 and 76.20 (Spot)
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India on Thursday said it was assessing the impact of the Trump administration's decision to block H-1B visas on Indian nationals and industry but indicated its dismay over it saying people-to-people linkages and economic cooperation are an important dimension of ties between the two countries. In a huge blow to Indian IT professionals eyeing the US job market, the Trump administration suspended the most sought-after H-1B visas along with other types of foreign work visas until the end of 2020 to protect American workers in a crucial election year. "This is likely to affect movement of Indian skilled professionals who avail of these non-immigrant visa programmes to work lawfully in the US. We are assessing the impact of the order on Indian nationals and industry in consultation with stakeholders," Spokesperson in the Ministry of External Affairs Anurag Srivastava said. He was replying to a question on the issue at an online media briefing. "People-to-people linkages and trade & economic cooperation, especially in technology and innovation sectors, are an important dimension of the US-India partnership," he said. The decision by the Trump administration is going to impact a large number of Indian IT professionals and several American and Indian companies who were issued H-1B visas by the US government for the fiscal year 2021 beginning October 1. Srivastava said high-skilled Indian professionals bring important skill sets, bridge technological gaps and impart a competitive edge to the US economy. "They have also been a critical component of the workforce that is at the forefront of providing COVID-19 related assistance in key sectors, including health, information technology and financial services," he said. "The US has always welcomed talent and we hope our professionals will continue to be welcomed in the US in the future," Srivastava said. Summarise this report in a few sentences.
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the decision is likely to affect movement of Indian skilled professionals, an official says. the government is assessing the impact of the order on Indian nationals and industry. the decision is going to impact a large number of Indian IT professionals. the decision is going to impact several american and Indian companies. a spokesman says people-to-people linkages are an important dimension of ties between the two countries.
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pawan nahar | ETMarkets.com | Updated: 4 May 2020, 11:44 am सोमवार को सिल्वर लेक ने रिलायंस इंडस्ट्रीज की टेलिकॉम इकाई रिलायंस जियो में 5,655.75 करोड़ रुपये के निवेश का एलान किया है. इस निवेश के लिए जियो की इक्विटी वैल्यू 4.9 लाख करोड़ रुपये आंकी गई है. 22 अप्रैल को फेसबुक ने रिलायंस जियो की 10 फीसदी हिस्सेसादारी 43,600 करोड़ रुपये में खरीदी थी. Summarise this report in a few sentences.
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nahar: 'it's a good thing we're not wasting our time' nahar: 'we're not going to waste our time' nahar: 'we're going to waste our time' nahar: 'we're going to waste our time' nahar: 'we're going to waste our time'
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By Adam Haigh Asian stocks began the week in mixed fashion as traders weighed more signs of economies reopening around the world against the rise in U.S.-China tensions. Hong Kong shares extended Friday’s slide, following police clashes with protesters marching against China’s move to crack down on dissent. Stocks climbed in Tokyo, Sydney and Seoul, and fluctuated in Shanghai. S&P 500 futures nudged higher, building on a rally from late in the Friday session. Oil traded near $33 a barrel in New York. Volumes may be light with holidays in the U.S., U.K. and Singapore. China set its daily yuan reference rate at the weakest level since 2008 after the increasing tensions drove the currency to a seven-month low. Emerging stocks cheapest in six years versus developed markets On the virus front, Japan’s government is expected to lift the state of emergency in Tokyo and its surrounding regions later Monday, while more Australian children returned to schools and a hard-hit region in northern Italy reported zero fatalities for the first time. Still, the U.S. is considering restricting travel from Brazil, which now has the second-highest number of cases. Fresh turmoil in Hong Kong that spilled over into street protests at the weekend is threatening to damage an already souring Sino-U.S. relationship. The U.S. should give up its “wishful thinking” of changing China, Chinese Foreign Minister Wang Yi said, warning that American leaders are potentially pushing toward a new Cold War. Bullish sentiment is prevailing for now and global equities remain about 30% higher than the March lows, spurred by stimulus measures and optimism for a swift rebound from the virus. “One big threat to the recovery in markets is the escalating war of words between the U.S. and China,” said Shane Oliver, head of investment strategy at AMP Capital Investors Ltd. in Sydney. “The main focus will likely remain on continuing evidence that the number of new Covid-19 cases is slowing in developed countries, progress towards medical solutions, the reopening of economies and signs that economic activity is picking up.” These are the main moves in markets: Stocks Futures on the S&P 500 rose 0.3% as of 1 p.m. in Tokyo. The gauge rose 0.2% on Friday. Japan’s Topix index advanced 1.2%. Hong Kong’s Hang Seng slid 1%. Shanghai Composite was little changed. Australia’s S&P/ASX 200 Index added 1.5%. South Korea’s Kospi Index gained 0.7%. Euro Stoxx 50 futures rose 0.6%. Currencies The yen was little changed at 107.73 per dollar. The offshore yuan held at 7.1520 per dollar. The euro bought $1.0889, down 0.1%. The Aussie dipped 0.1% to 65.34 U.S. cents. Bonds The yield on 10-year Treasuries fell one basis point to 0.66% on Friday. Futures traded flat. Australian 10-year yields were steady at 0.87%. Commodities West Texas Intermediate crude added 1% to $33.58 a barrel. Gold dipped 0.4% to $1,728.52 an ounce. Summarise this report in a few sentences.
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a surge in the yuan, a currency that has been at a seven-month low, has weighed on the global economy. the yuan is the weakest currency in the world, with a seven-month low. the yuan is the weakest since 2008. a hard-hit region in northern Italy reported zero fatalities for the first time.
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Asian gasoil markets will continue to face headwinds over the next few months even as refineries cut processing rates further and economies gradually start picking up as the coronavirus pandemic becomes contained, analysts said. Sluggish industrial activity and travel restrictions due to extended lockdowns, alongside disruptions to global supply chains, could cut gasoil demand by more than 4 million barrels per day in the second quarter from the same period in 2019, depressing refiners' margins, they said. Refining margins, also known as cracks, for gasoil with a sulphur content of 10 parts per million (ppm) slid to a record low of $2.83 a barrel over Dubai crude this week. The gasoil crack, which until last month showed resilience when the downward spiral engulfed jet fuel and gasoline, is currently one of two oil products that yield positive margins in the refining complex. However, it has shed over 67 percent in the last one month, prompting refiners and traders to worry that the worst might be yet to come. Gasoil and jet fuel, or middle distillates, account for about 40 percent of refiners' output. 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 "Weakening cracks, plus worries over the availability of off-takers, is prompting more Asian refineries to consider additional run cuts," said Sri Paravaikkarasu, director for Asia oil at consultancy FGE. "Even with this, Asian gasoil length should be some 900,000 barrels per day (bpd) higher y-o-y over May. Consequently, Singapore 10-ppm gasoil cracks should face more headwinds in the near term, before stabilizing in late-June/July." An ongoing shift in refinery yields away from the beleaguered products such as jet fuel and gasoline partially offsets the reduction in gasoil output from ongoing refinery run cuts, analysts said. Rystad Energy expects COVID-19 to remove nearly 4 million bpd of road diesel demand worldwide in the second quarter, and diesel demand in other sectors to drop by another 1.2 million bpd. Subdued demand in major domestic markets including India and China would likely force these countries to export more fuel into the region, which is already grappling with supplies, trade sources said. "The lockdown in India is expected to negatively impact diesel cracks in the region as the drop in domestic consumption will free more diesel for exports," said Rystad senior oil market analyst Paola Rodriguez-Masiu. "The progressive recovery of China will offer some support to diesel cracks, but weakness is expected to persist until the end of third quarter 2020." Follow our full coverage of the coronavirus pandemic here. Summarise this report in a few sentences.
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gasoil and jet fuel account for about 40 percent of refiners' output. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by building herd immunity to put an end to the pandemic.
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The European Union will scrap import controls on solar panels and cells from China in September, rejecting a request from EU producers who argue that the bloc will be opening its doors to a flood of dumped products. The European Commission, which coordinates EU trade policy, proposed dismissing the request for an "expiry review" and received backing from a majority of the EU's 28 countries, according to EU sources familiar with the discussions. The European Union first imposed anti-dumping and anti-subsidy measures for Chinese solar panels, wafers and cells in 2013 and extended them in March 2017 by 18 months, signalling that they should then end. Chinese manufacturers are allowed to sell solar products in Europe free of duties if they do so at or above a minimum price that has progressively declined. If sold for less than that price, they are subject to duties of up to 64.9 percent. The European Union has faced a delicate balancing act between the interests of EU manufacturers and those such as importers and installers pressing for a reduction in the cost of solar power generation. It has also been concerned about the response from Beijing given the two sides were on the verge of a trade war over the issue in 2013. EU ProSun, the grouping of EU producers that launched the initial complaint in 2012, had said there were good reasons for measures to be prolonged. Beijing's decision to limit installations meant Chinese producers had some 30 gigawatts of excess capacity to shift with few markets to sell into after tariffs imposed by the United States and planned by India, the second and third largest markets behind China. The total EU market is some 7 gigawatts. "Only the EU is at the same time irresponsibly dropping all measures and inviting Chinese producers to eliminate European and third-country competition in the EU market," EU ProSun president Milan Nitzschke said, adding some companies were considering a legal challenge at the European Court of Justice. SolarPower Europe, which represents those in the solar industry opposed to duties, has referred to Commission and EY studies indicating demand could increase by up to 30 percent, creating about 45,000 jobs if the measures were removed. Summarise this report in a few sentences.
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the european union will scrap import controls on solar panels and cells from china in September. the eu first imposed anti-dumping and anti-subsidy measures for Chinese solar panels in 2013. the measures were extended in march 2017 by 18 months, signalling that they should then end. the eu has faced a delicate balancing act between the interests of EU manufacturers and those pressing for a reduction in the cost of solar power generation.
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British data analytics firm Cambridge Analytica is at the center of controversy in the United States and Britain after two newspapers reported on Sunday that the company harvested personal data about Facebook users beginning in 2014. Best known for assisting the 2016 presidential campaign of U.S. President Donald Trump, Cambridge Analytica is now facing a government search of its London office, questions from U.S. state authorities, and a demand by Facebook that it submit to a forensic audit. Here is some of what is known about the company. How did it start? Cambridge Analytica is an offshoot of SCL Group, a government and military contractor that says it works on everything from food security research to counter-narcotics to political campaigns. SCL was founded more than 25 years ago, according to its website. Cambridge Analytica was created around 2013 initially with a focus on U.S. elections, with $15 million in backing from billionaire Republican donor Robert Mercer and a name chosen by future Trump White House adviser Steve Bannon, the New York Times reported. The company, which the New York Times reported was staffed by mostly British workers then, assisted Republican Senator Ted Cruz's presidential campaign before helping Trump's. What do they do? Cambridge Analytica markets itself as providing consumer research, targeted advertising and other data-related services to both political and corporate clients. It does not list its corporate clients but on its website describes them as including a daily newspaper that wanted to know more about its subscribers, a women's clothing brand that sought research on its customers and a U.S. auto insurer interested in marketing itself. Britain's Channel 4 News reported on Monday, based on secretly recorded video, that Cambridge Analytica secretly stage-managed Kenya President Uhuru Kenyatta's campaigns in the hotly contested 2013 and 2017 elections. Cambridge Analytica denied the report. The company's website lists five office locations in New York, Washington, London, Brazil and Malaysia. When did it first get attention? After Trump won the White House in 2016, in part with the firm's help, Cambridge Analytica CEO Alexander Nix went to more clients to pitch his services, the Times reported last year. The company boasted it could develop psychological profiles of consumers and voters which was a "secret sauce" it used to sway them more effectively than traditional advertising could. Rival consultants and campaign aides, though, expressed doubts about the company's claims. Brad Parscale, who ran Trump's digital operations in 2016, said the campaign did not use Cambridge Analytica's data, relying instead on voter data from a Republican National Committee operation. What is it accused of? Cambridge Analytica beginning in 2014 obtained data on 50 million Facebook users via means that deceived both the users and Facebook, the New York Times and London's Observer reported on Saturday. The data was harvested by an application developed by a British academic, Aleksandr Kogan, the newspapers said. Some 270,000 people downloaded the application and logged in with their Facebook credentials, according to Facebook. The application gathered their data and data about their friends, and then Kogan passed the data to Cambridge Analytica, according to both Cambridge Analytica and Facebook. Cambridge Analytica said on Saturday that it did not initially know Kogan violated Facebook's terms, and that it deleted the data once it found out in 2015. Kogan could not be reached for comment. The data, though, was not deleted, the two newspapers reported on Saturday. Cambridge Analytica said that the allegation was not true. Facebook said it was investigating to verify the accuracy of the claim. What happens next? Facebook said it was pressing Cambridge Analytica for answers, after getting assurances from the firm in 2015 that it had deleted all data. Facebook has hired forensic auditors from the firm Stroz Friedberg to help. While Facebook investigates, the social network said it was suspending Cambridge Analytica, its parent SCL, Kogan and another man, Christopher Wylie, formerly of Cambridge Analytica, from its platform for violating Facebook rules. Facebook's probe, though, may have to wait until government authorities complete their investigation. The UK Information Commissioner's Office is pursuing a warrant to search Cambridge Analytica's office and asked Facebook's auditors to stand down in the meantime, according to Facebook. Attorneys general from the U.S. states of Massachusetts and Connecticut have launched investigations into how the Facebook data was handled, and the attorney general's office in California, where Facebook is based, said it had concerns. Summarise this report in a few sentences.
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the data analytics firm is at the center of controversy in the united states and Britain. two newspapers reported on Sunday that the company harvested personal data about Facebook users. the company is now facing a government search of its London office and a forensic audit. it is best known for assisting the 2016 presidential campaign of president. a government search is also underway in the united states and uk.
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Rahul Gandhi took a jibe at the Modi government on Friday after Finance Minister Nirmala Sitharaman announced corporate tax cuts for domestic firms and new domestic manufacturing companies. He said that the tax cuts have been announced at this time to give the stock market a bump so that it could coincide with the Howdy Modi event in Houston, Texas this Sunday. In a sarcastic tweet, Rahul Gandhi said that at Rs 1.4 lakh crore, the Houston event is turning out to be the world's most expensive event ever. The government had earlier stated in a press note that the corporate tax cut would cost India Rs 1.45 lakh crore. Gandhi further said that no event can hide the economic mess that India has landed in. Amazing what PM is ready to do for a stock market bump during his #HowdyIndianEconomy jamboree. At + 1.4 Lakh Crore Rs. the Houston event is the world's most expensive event, ever! But, no event can hide the reality of the economic mess "HowdyModi" has driven India into. - Rahul Gandhi (@RahulGandhi) September 20, 2019 After the announcement, Prime Minister Narendra Modi also spoke about the tax cuts and called it a historic move. "The step to cut corporate tax is historic. It will give a great stimulus to Make In India, attract private investment from across the globe, improve competitiveness of our private sector, create more jobs and result in a win-win for 130 crore Indians," he said. "The announcements in the last few weeks clearly demonstrate that our government is leaving no stone unturned to make India a better place to do business, improve opportunities for all sections of society and increase prosperity to make India a $5 Trillion economy," PM Modi added. During the press conference held ahead of the GST Council meet on Friday, PM Sitharaman announced that the current corporate tax rate has been brought down to 22 per cent from the existing 30 per cent. The effective tax rate will be 25.17 per cent inclusive of all surcharges and cess for such domestic companies. For new manufacturing companies the existing tax rate is 25 per cent which has been brought down to 15 per cent. The effective tax rate after surcharges and cess will be 17 per cent. Also read: Corporate tax cut: Modi govt gives big relief to India Inc, slashes rate to 22% from 30% The minister had said that this cut will promote growth and investment in the country. Gripped by the tax cut euphoria, Sensex later made an intraday climb of 2,284 points to the day's high of 38,378.02 and Nifty climbed to the intraday high level of 11,381.90. Both the indices Sensex and Nifty gained over 6% in Friday's trade. PM Modi is scheduled to attend the Howdy Modi event on September 22. The community summit is organised by Texas India Forum (TIF) and saw over 50,000 registrations in three weeks. The event is all sold out. The website mentioned that the audience will be the largest gathering for an invited foreign leader in the country, except for the Pope. Also read: What is Howdy Modi? Check timing, details of PM Modi-Donald Trump event in US Summarise this report in a few sentences.
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Rahul Gandhi says tax cuts are to give stock market bump to coincide with modi event. he says the event is the world's most expensive event ever. pm modi also spoke about the tax cuts and called it a historic move. he said the tax cuts will give a great stimulus to Make in india. a spokesman for the government said the cuts will be effective from 1st of june.
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Gold prices on Tuesday held on to last session's more than one-week high on concerns around U.S.-China relations and as rising violent protests in the United States stoked fears of a resurgence in virus cases, while optimism on reopening of economies checked their rise. Spot gold was flat at $1,739.48 per ounce, as of 0344 GMT. U.S. gold futures rose 0.1% to $1,752.10. "It appears that there are factors both supporting, and limiting appreciation in the gold price," said National Australia Bank economist John Sharma. The U.S. is likely to revoke Hong Kong's special status, and China would retaliate by limiting purchase of U.S. products- putting the Sino-U.S. trade deal in doubt, and providing support to gold; while the easing of lockdowns is limiting gains, Sharma added. In a sign that the worst of the economic downturn from the coronavirus pandemic might be over, U.S. manufacturing activity crawled up slightly from an 11-year low, and China's factory activity unexpectedly returned to growth- in May. Despite some optimism about economies gradually reopening, gold prices have gained in the previous three sessions, and hit their highest on Monday since May 21. Bullion was supported by fears that the demonstrations over the death of an African American in police custody could worsen the spread of the coronavirus, and hamper the world's biggest economy's recovery. U.S. President Donald Trump stated he would deploy the military, if required. Reflecting investor sentiment, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.5% to 1,128.40 tonnes on Monday, the highest in seven years. The dollar hovered near more than a two-month low hit on Friday, making gold less expensive for holders of other currencies. Palladium rose 0.1% to $1,962.61 per ounce, while platinum was down 0.5% at $843.70, and silver fell 0.6% to $18.17. Summarise this report in a few sentences.
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gold prices hold on to last session's more than one-week high. gold is flat at $1,739.48 per ounce, as of 0344 GMT. gold is supported by fears of a resurgence in virus cases. gold is supported by fears that violent protests could worsen the spread of the virus. despite optimism about economies gradually reopening, gold prices have gained in the previous three sessions.
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File Image The Rs 1.7 lakh crore relief package that finance minister Nirmala Sitharaman announced on March 26 clearly sets the government’s priorities about who needs to be protected the most from the devastating disruptions that the coronavirus pandemic and the nation-wide lockdown have caused. The government has picked those living on the margins, those with limited savings and those with weak borrowing power as the first set of people for handholding. These are daily wage earners, construction workers, farmers and women with low income. The lockdown’s effect is very similar to a mechanical hard stop on a device that was running. What happens when the government asks factories to shut down because people have to be confined at home? What happens when the government asks construction activity to stop overnight because areas with large gatherings have to be emptied out? What happens when restaurants and shops, other than those selling essentials, are ordered to shutter down because people’s physical proximity can add to the disease’s spread? In such a situation, a restaurant, a retail garment seller, a property builder and a road builder will all show a similar first instinct: to cut costs. The temporary staff working at these establishments are often the first ones to find themselves out of work. 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 Many of these eke out a subsistence living, spending a very large proportion of their income on food, leaving very little to spend on other ‘non-essentials’ or aspirational products and services. They are a perfect exemplification of the Engel's Law, an economic theory German statistician Ernst Engel propounded in the 19th century, stating that the percentage spent on food purchases decreases as income rises and vice-versa. With many of them suddenly jobless, their incomes have dramatically collapsed. The uncertainty over when economic activity is likely regain momentum has only deepened anxieties. This hard stop in the economy, unlike other recessions caused by systemic flaws such as the debt bubble of 2008, has been brought upon by the government because of a medical emergency. It is intentional and unavoidable. Unlike previous occasions, when the meltdown was spread over a few quarters with signals flashing from various corners, the current interruption is more akin to switching of a light bulb. However, unlike a light bulb, an economy cannot be switched on again at the press of a button. It is elegant to argue that production is plunging since workers are away from work. It is also neat to reason that once the medical crisis passes, production will resume and all jobs will be restored. In the real world though, switching on an economy is considerably more laboured and prolonged that switching it off. That is perhaps the reason why the government has chosen to adopt a graded action plan, instead of a big bang one-off push to keep the lights on. The package that Sitharaman announced should be seen in this context. It is more of a ‘safeguard package’, dictated by the need to safeguard incomes of those who have seen the lockdown shave off a large proportion of their daily earnings. The first step is to inspire confidence about the State-supported safety net among the most vulnerable. This is precisely what the government has sought to convey. One would reckon a few more packages are in the works, particularly for the micro, small and medium enterprises (MSMEs), traders who have been forced to close operations, and perhaps India’s vast consuming middle class that keeps the economy’s wheels moving rapidly. Large corporations, who are looking towards that one big stimulus, may have to wait a little longer. Summarise this report in a few sentences.
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government has picked those living on the margins, those with limited savings and those with weak borrowing power as the first set of people for handholding. daily wage earners, construction workers, farmers and women with low income are among those who need to be protected. 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.
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Financial Year CII Number 2020-21 301 2019-20 289 2018-19 280 2017-18 272 2016-17 264 2015-16 254 2014-15 240 2013-14 220 2012-13 200 2011-12 184 2010-11 167 2009-10 148 2008-09 137 2007-08 129 2006-07 122 2005-06 117 2004-05 113 2003-04 109 2002-03 105 2001-02 100 The Cost Inflation Index (CII) for the financial year (FY) 2020-21 has been notified as 301 by the Ministry of Finance. The notification is dated June 12, 2020. For the previous financial year, i.e. FY 2019-20, CII was 289.This number is important as it is used to arrive at the inflation-adjusted purchase price of assets and thereby long-term capital gains (LTCG) on it when it is sold. This index will be used to compute the long-term capital gains/long-term capital losses (LTCL) on assets such as property, gold, debt mutual fund units held for more than 3 years which are sold in FY 2020-21. Thus, at the time of filing income tax returns (ITR), this number will be required to calculate capitals gains arising from the sale of an asset in FY 2020-21.According to the finance ministry notification, CII for FY 2020-21 shall come into force with effect from 1st day of April, 2021 and shall accordingly apply to the assessment year 2021-22 i.e FY2020-21 and subsequent years.It is an index used to calculate the notional increase in the value of an asset due to inflation. . There are two things that individuals need to keep in mind regarding the cost inflation index.Firstly, this number will be used to calculate inflation-adjusted cost only for those assets where inflation-adjusted (indexation benefit) is allowed. Therefore, the CII value cannot be used to arrive at LTCG/LTCL on equity mutual funds as the amount that exceeds Rs 1 lakh per fiscal is taxed at a flat rate of 10 per cent without indexation benefit.Secondly, this CII number will be required to calculate LTCG for FY 2020-21 for the assets where indexation is allowed before levy of LTCG tax. The taxes on these gains will be paid by you while filing your income tax returns (ITR) for FY 2020-21 (AY 2021-22).Here is the table showing all the CII numbers since 2001-02:The formula to calculate inflation-adjusted cost price is: (CII of the year of sale/CII for the year of purchase) * Actual cost price Summarise this report in a few sentences.
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cost inflation index (CII) for the financial year 2020-21 has been notified as 301 by the ministry of finance. it is used to arrive at the inflation-adjusted purchase price of assets. this number will be used to calculate long-term capital gains/long-term capital losses (LTCL) on assets held for more than 3 years.
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By Urvashi Valecha The market capitalisation of Reliance Industries (RIL) is now greater than the combined m-cap of the country’s top two private banks — HDFC Bank and ICICI Bank. The change shows a distinct shift in the market’s leadership position in a post-Covid world. The combined m-cap of the two banking giants on January 31 stood at Rs 10.11 lakh crore, while that of the oil-to-telecom conglomerate was at Rs 8.95 lakh crore. At Thursday’s market close, the m-cap of RIL was Rs 10.01 lakh crore, while the combined m-cap of HDFC Bank and ICICI Bank was at Rs 7.75 lakh crore. The banking sector has been beaten down on asset quality concerns as the lockdown has hit both retail and corporate borrowers hard. Following the January highs, the markets saw a broad-based sell-off due to the Covid-19 pandemic and the economic uncertainties that came with it. Deven Choksey, MD, KR Choksey Investment Managers, said, “On the one hand, this shows one company (RIL) that has seen a range of deals and value unlocking which led to the surge in its market cap, on the other, there are companies bearing the brunt of the economic situation in the country, and so, have been beaten down badly.” On March 23, when the stock markets hit the rock bottom, the m-cap of RIL stood at Rs 5.6 lakh crore. The combined m-cap of HDFC Bank and ICICI Bank stood at Rs 6.06 lakh crore on March 23. After a series of deals announced by RIL for Jio Platforms, the company has been re-rated and it’s showing in the stock price. Naveen Kulkarni, chief investment officer, Axis Securities, is of the view that since the nature of the two businesses were very different, they were not comparable, . Traditionally, the m-cap of RIL has been lesser than that of the combined m-cap of HDFC Bank and ICICI Bank, barring for a small period between September 2018 and October 2018. According to Kulkarni, the fluctuations in m-cap do not point towards any large structural change. “The fluctuation in m-cap does not really point out to any structural change in the markets as such or even in the leadership. For instance, Kotak Mahindra Bank is one of the most expensive banks in terms of market value. As for RIL, the telecom business has not been affected by the current economic situation as such, even Vodafone Idea is seeing demand, so, it is a change in preference and demand,” he said. Going ahead, market experts say the difference between the m-cap of the three will depend on various triggers. Deepak Jasani, head – retail research, HDFC Securities, said, “The m-cap difference will depend on triggers returning for financials and RIL’s stock performance hereon. Sectors come into demand and then their lure fades away. All the three stocks are among the top performers and holdings of most institutions.” Summarise this report in a few sentences.
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the combined m-cap of the two banks stood at Rs 10.11 lakh crore. the combined m-cap of HDFC Bank and ICICI Bank was at Rs 8.95 lakh. the banking sector has been beaten down on asset quality concerns. after the covid-19 pandemic, the m-cap of RIL stood at Rs 5.6 lakh crore.
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NEW DELHI: The technology driven platform that makes it possible for ration cards to be used across India will enable everyone, including migrant workers, to draw their monthly quota of grains and pulses from anywhere in the country, experts said.It will also reduce corruption and plug leakages by doing away with monopolistic and rent-seeking behaviour by ration shop owners. Additionally, family members will be able to avail of their quota of subsidised ration from any place at the same time, the experts pointed out.The One Nation, One Ration Card scheme announced by finance minister Nirmala Sitharaman on Thursday will be driven by ration cards seeded with Aadhaar data of each family member. While 670 million beneficiaries in 23 states, covering 83% of those using the Public Distribution System ( PDS ), will be in the net by August this year, 100% national portability will be achieved by March 2021, Sitharaman said. This will include all states and Union Territories completely automating the fair price shop (FPS) by March next year.The idea of portable ration cards was first mooted by a committee headed by Nandan Nilekani, the then chairman of the Unique Identification Authority of India (UIDAI). The committee presented a report nine years ago on a next-generation national PDS.“It would have given, among other things, full nationwide portability of benefits (anytime, anywhere), option for food or cash, etc. It could have been a hugely positive strategic platform in this crisis!” Nilekani, chairman of Infosys , had said on Twitter earlier this week.The scheme will enable true implementation of the National Food Security Act, 2013 through seamless nationwide portability of subsidised ration, which is one of the major issues faced by migrants, Rajesh Bansal, Senior Advisor, Carnegie India told ET. “In its scope, this is similar to the interoperability of the Aadhaar-enabled Payment System (AePS) platform, which has reduced rent seeking by business correspondents as people now have the choice to withdraw money from any micro-ATMs, similar to the way urban Indians can withdraw from any ATM in the country,” Bansal said.However, the success of this endeavour will depend on the kind of technology platform being adopted, the governance structure, mapping of incentives and the political economy, the former assistant director general of UIDAI added. Bansal said Andhra and Telangana implemented a full-scale intra-state portability of PDS from 2013-14, empowering their citizens and reducing monopoly behaviour of ration shop owners. “Measures such as One Nation, One Ration Card will be a big support for food security of the migrant population,” said Manu Gupta, cofounder of SEEDS, a grouping that helps the marginalised during distress. Summarise this report in a few sentences.
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ration cards will be seeded with Aadhaar data of each family member. migrant workers will be able to draw their monthly quota of grains and pulses. scheme will reduce corruption and plug leakages by doing away with monopolistic and rent-seeking behaviour by ration shop owners. 670 million beneficiaries in 23 states, covering 83% of those using the public distribution system, will be in the net by august this year.
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By Aditya Bagree Union Budget 2019: With the Budget 2019 around the corner, taxpayers are hoping for announcements that will reduce their tax burden. The last few budgets have not been too friendly with taxpayers, especially with the last year’s announcement of 10% long-term capital gain tax. In the Interim Budget 2019, there are speculations that the government will use the opportunity to appease the salaried taxpayers ahead of the general election. The expectations are really high this time. These are the 5 major ways in which the Interim Budget can bring joy for the Indian taxpayers: 1. Increase in basic exemption limit from Rs 2.5 lakh to Rs 5 lakh: Individuals having a total income up to Rs 5 lakh are required to pay tax @ 5%. With the increase in total income earned by the individuals, the rate of taxation jumps up directly to 20% (for income up to Rs 10 lakh) and 30% (for income beyond Rs 10 lakh). There arises a disparity in taxation for individuals falling in the middle-level income category. It is hoped that the income slab will be increased; else the tax rates are reduced. The basic exemption should be increased from Rs 2.5 lakh to Rs 5 lakh and the highest income tax slab should be revised from Rs 10 lakh to Rs 20 lakh. Else, the government should consider streamlining the tax rate to 10% for income up to Rs 10 lakh and 20% for income beyond Rs 10 lakh. 2. Increase tax exemption under Section 80C: Many individual taxpayers face a challenge in claiming a deduction on their investments as the limit of Rs 1.5 lakh provided under Section 80C gets quickly exhausted. There is a need to revise the threshold specified under Section 80C. Further, conservative investors tend to buy five-year FDs for tax saving where interest rate has come down drastically. Hence, for a better return for investors, investment in the low-risk hybrid funds should be eligible for 80C deduction. READ ALSO | Railway Budget 2019 Live: Piyush Goyal to outline big plans for Indian Railways 3. Less taxing bank FDs: If the government eases up the taxation on risk-free liquid investments, there are chances that will add a new feather in the hat for the government. The amendments of Section 80D exempting non-senior citizens as well from the tax levied on bank FDs or further extending the limit of interest income to Rs 1 lakh will encourage the taxpayers to maintain a balanced risk profile. 4. Increase in exemption limit for interest on home loans: Under the existing tax provisions, interest of up to Rs 2 lakh on a housing loan for a self-occupied house is deductible from an individual’s gross income. Also, the limit of loss from house property that can be adjusted against other income is just Rs 2 lakh. Considering the high real estate prices, these limits can be enhanced to Rs 2.5 lakh. 5. Standard Deduction: This is the high time when the government must strike a balance by changing the tax slabs to favor public and maintain a fiscal sense as well. Salaried employees didn’t find any relief in the last year’s budget, but this year hopes are high for an increase in the standard deduction. This will help the salaried class to cope up with the inflation. Considering the steep rise in the cost of living due to inflation, it is suggested that the basic exemption limit and income slabs should be enhanced to give benefit to the low-income group. The author is Director, Business Aggregate (Network of Independent Companies) Summarise this report in a few sentences.
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the last few budgets have not been too friendly with taxpayers. the government should increase the basic exemption limit from Rs 2.5 lakh to Rs 5 lakh. the highest income tax slab should be revised from Rs 10 lakh to Rs 20 lakh. the government should also consider streamlining the tax rate to 10% for income up to Rs 10 lakh and 20% for income beyond Rs 10 lakh.
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The economy is staring at a recession that the country has never seen in a century. After a spate of negative growth projections by various research houses, now the Reserve Bank of India (RBI) has stated that the gross domestic product (GDP) growth will remain in the negative territory for the financial year 2020-21. Discussing the current state of economy post the government's Rs 20 lakh crore economic package and the RBI's latest policy measures, Navneet Munot, Executive Director and Chief Investment Officer, SBI Mutual Fund, says that even as the central bank has delivered more than what is expected out of it, it will have to do a lot more so that the profit and loss (P&L) recession, which is certain, doesn't turn into a balance sheet recession. A balance sheet recession happens when highly indebted companies collectively focus on reducing debt instead of growth, causing rut in the economy. "We need to think about creative ways to revive different industries, which will be in deepest trouble over the next few quarters. There will be P&L recession for sure due to several businesses recording a decline in profit. We need to ensure that it does not become a balance sheet recession, because if that happens, repairing it will take a much longer time. Our potential growth rate will also come down in that case," he says in a conversation with Rahul Arora, CEO, Nirmal Bang Institutional Equities, in a webinar. Munot points out that the RBI has been doing the heavy lifting so far from announcing loan moratorium to extending it, restructuring of loans in sectors like real estate and so on. But more efforts are needed. He notes the RBI is in a better position compared to other central banks in the world to support the economy. "Philosophically, I am against any sort of loan relief because credit culture has to be maintained. But, at the same time, one-time restructuring will be required for a lot of businesses. The RBI will have to take a lot of borrowing by the Centre and state governments on its own book. If you look at the size of the RBI balance sheet compared to that in several other states, our central bank still has some space. We might record current account surplus as our forex reserves are strong. We should find creative ways to use it," says Munot. The country's foreign exchange reserves increased by $1.73 billion to $487.04 billion in the week to May 15, which is equivalent to 12 months of imports, according to the RBI data. Further, on the government's economic package, he says increasing the allocation for Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was one of the good measures. "We need to see if we can employ migrant labourers to build long-term capital assets." Keeping in view the collapse in oil prices, one of the creative ways, he says, is to build oil reserves in India with the help of migrant labourers. It will not only generate employment, but also create a capital asset that will stay for a long time. "We should create a massive oil storage capacity at a war scale. Then we should buy oil from the futures markets and create reserves for several months," he says. At the same time, he advises to look beyond fossil fuel. "What if something so bad happens in the world that ships just don't come to India. You never know! That is why we should think beyond fossil fuel now. Can we use technology to replace fossil fuel usage with renewable energy, natural gas, solar and wind energy? We need to prepare ourselves to live without oil over the next 10-20 years," he says. The crux of his logic is to focus on both - having enough oil reserves and life beyond fossil fuel. Also read: Coronavirus India Live Tracker: Delhi registers 508 new cases in 24 hours; tally over 13,400 Also read: Eid-ul-Fitr: Is the Indian stock market open or closed for trading tomorrow? Summarise this report in a few sentences.
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RBI says gross domestic product growth will remain negative for the financial year 2020-21. a balance sheet recession happens when highly indebted companies collectively focus on reducing debt. RBI is in a better position compared to other central banks in the world to support the economy. a rupee-led rupee-led government is expected to deliver a 5% growth rate by the end of the year.
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With the government staring at a situation of acute cash stress the ministry of finance has disallowed the automatic carry forward of unspent money by various ministries and departments over the next month or quarter.Further, the ministry decided that the April 8 order restricting overall quarterly expenditure of certain ministries and departments to 15-20% of their budgeted amounts in the first quarter of this fiscal, will continue through the second quarter.“Considering the need to effectively manage the cash flows of the Government, it has been decided to retain and continue with the same expenditure management measures in Q2, as was applicable for Q1 of FY 2020-21,” the order said, adding further guidelines to curtail expenses.The latest decision, in a slew of measures tightening the government’s purse strings , taken on Tuesday, is indicative of the severity of its fiscal constraints.Earlier this month, the finance ministry had barred all new scheme proposals for the ongoing fiscal apart from those under the ambit of the stimulus package. Prior to that, the government froze already announced hikes in the dearness allowance for its employees till March 2021.While the extended lockdown will have a significant adverse impact on both direct and indirect tax collections the government's expenditures are only rising as it focuses on propping up the economy.Additionally, the order directed ministries and departments to not bunch up expenditures or releases in order to avoid idle parking of funds.“Ministries/Departments while utilising their allocations shall take utmost care to not bunch up expenditures/releases in a bid to improve their pace of expenditure leading to parking of funds. In these times of acute cash stress, utmost care may be taken to avoid releases that can contribute to idle parking of funds,” it said. Summarise this report in a few sentences.
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ministry of finance has disallowed automatic carry forward of unspent money. order restricts overall quarterly expenditure of certain ministries and departments to 15-20% of their budgeted amounts in the first quarter of this fiscal. ministry also froze hikes in dearness allowance for its employees till march 2021. move is indicative of the severity of the government's fiscal constraints.
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In this special podcast on Budget 2020, host Shraddha Sharma is in conversation with Moneycontrol's Corporate Bureau Chief Prince Thomas to find out the top announcements for the corporate sector and how it would boost the economy. Thomas first talks about a surprise move of the partial disinvestment of Life Insurance Corporation (LIC) and how it will boost markets. Next, he discusses how the abolishment of the the dividend distribution tax (DDT) means for India Inc. Speaking about MSMEs and start-ups, he says the Budget announcements will help them raise their turnover threshold over the audit of businesses up to Rs 5 crore. Tune in to this special Budget 2020 podcast for more. Summarise this report in a few sentences.
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the corporate sector is set to see a boost in the budget. the partial disinvestment of Life Insurance Corporation (LIC) is a surprise move. the dividend distribution tax (dDT) will be abolished. the podcast is a special episode of the moneycontrol podcast. cnn's shraddha Sharma is in conversation with the corporate bureau chief.
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he outbreak of Covid-19 has broken the supply chain of raw material for groundnut oil mills in Gujarat and as a result, price of groundnut oil is constantly increasing over the past fortnight. Sources in the groundnut oil industry confirmed that in a span of last fortnight, prices of groundnut have almost touched Rs 2,300 per 15 litre of tin from around Rs 2,100. If the current situation prolongs, it may even cross Rs 2,500 mark by the end of April. “Agriculture Produce Market Committees (APMCs) across Gujarat are closed or functioning partially. There has been dearth of labourers. Due to inadequate transport facilities, farmers too are not able to bring groundnut to markets,” said Samir Shah, president of Saurashtra Oil Mills Association (SOMA). Since November 2019, National Agricultural Cooperative Marketing Federation of India Limited (Nafed) is purchasing groundnut from farmers. As a result of this buying, Nafed has stock of nearly 6 lakh tonne of groundnut in warehouses situated in the different part of Gujarat, especially in Saurashtra region. According to Shah, Nafed has stopped releasing groundnut stock to oil millers and traders following nationwide lockdown announced by Prime Minister to curb spread of coronavirus. “We respect the call given by the Prime Minister, but at the same time edible oil mills should also continue for the supply of different oils including that of groundnut oil. SOMA has requested Nafed to restore selling of groundnut to pacify increasing demand of groundnut oil,” he added. On the other hand, Nafed too is facing difficulties to release groundnut stock as the officials are finding it difficult to engage labourers in such pandemic situation. Similarly, of the 200 odd groundnut crushing mill, only those mills are functioning which have some stock of raw material (groundnut). Shah claimed that only 40 to 50 such oil mills are running that too at below 50% of their installed capacities and others are forced to shut their production in wake of raw material and labour shortage. During the third week of December groundnut oil prices were hovering around `1,900 and it took almost couple of months to cross `2000-mark despite exports of groundnut and its derivatives. Summarise this report in a few sentences.
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outbreak of covid-19 has broken supply chain of raw material for groundnut oil mills in Gujarat. prices of groundnut oil have almost touched Rs 2,300 per 15 litre of tin from around Rs 2,100. if current situation prolongs, it may even cross Rs 2,500 mark by end of April. since November 2019, national agff has stock of nearly 6 lakh tonne of groundnut in warehouses situated in different parts of Gujarat.
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A) There is a lot of grey area and a lot of varied definitions of what comprises ESG and a company faring well on ESG scores by one criterion might have much lower scores by another. Q) Do you think companies in the ESG space could get attention? A) Such periods of high volatility, uncertainty and disruption do impact the smaller/vulnerable firms across industries and lead to higher degrees of consolidation. It is also a sign of a competitive/dynamic industry structure. I think it is no different within the financial services industry. Q) We have already seen a big casualty in the form of IndiaNivesh Securities broking arm shutting down the operations. Do you think this could just be the starting? These will include leading names in the private banking and insurance segment. Demand for various consumer discretionary items across segments such as passenger vehicles, AC, jewelry amongst others will get deferred but eventually, they will all come back. Market leaders in these segments should do well. A) Many quality businesses run by good management, addressing large-sized structural opportunities and which have grown profitably in the past will continue to do so in the future across industries. Q) We have seen massive wealth erosion in most of the top-quality stocks in FY20, and as we step into FY21 some of those names could give multibagger returns if someone is investing in them now. Which are the sectors that could lead the way? But since there can be more volatility and remain so for an uncertain period, an investor can choose his/her approach basis discussion with his financial advisor. We think a mix of lump sum and staggered approach might be fine in the current circumstances. In the long term, markets will eventually reflect the inherent strength and value of the businesses comprising the market. The recent ~35% correction brings valuations to attractive levels given that fair value of businesses have not got impaired anywhere close to what the prices are suggesting. The global flows, in turn, are being determined more by factors such as fear. It helps to keep in mind that “In the short term the markets are a voting machine but in the long term a weighing machine”. If they are unallocated/under-allocated to equity, given risk profile, this is a wonderful opportunity to correct that imbalance. The short term is expected to be fairly volatile and global flows will determine this volatility. 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. What does it take to develop a vaccine of this kind? 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. 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. A) Investors should look at an allocation into equities only from within what they have kept aside as an investment/savings pool. These are good times to refresh this asset allocation. Q) Smart investors might be looking to buy the dip – what would you advise – lump sum or staggered approach in direct equities or mutual funds? Many quality businesses run by good management, addressing large-sized structural opportunities and which have grown profitably in the past will continue to do so in the future across industries will bounce back, Gaurav Misra, Senior Fund Manager- Equity, Mirae Asset Investment Managers India, said in an interview with Moneycontrol’s Kshitij Anand. Thus, India’s leading tobacco company might be ranked higher on ESG scores (by some rating methodology) than some well-managed consumer companies but get excluded by other ESG ratings (on basis of the sector).Similarly, India’s leading power utility is spending billions of dollars to reduce its NOX/SO2 emissions to be at par with gas-based plants and further improve its ESG score. While predominantly thermal it is moving towards a larger share of Renewable’s organically and through acquisitions. Yet it is getting penalised for being a “thermal power (coal-based)” producer. The thought behind a greater focus on sustainable aspects of environment and society, is important in the long term for everyone. Good governance which should include among other things, minority shareholder interest (through better risk controls, capital allocation, etc), was always important for us. Q) What are your expectations from FY21? What are your views on earnings, markets, flows, as well as demand? A) My expectation for FY21 is fluid and will depend on: 1) The timelines on how successfully India and other countries are able to contain the spread of COVID 19 and the concomitant development of drugs and vaccines, if any. 2) The appropriateness, efficacy, and optimality of various monetary and fiscal measures announced by the government. In the short term, there is a partial/complete cessation of activities barring a few sectors such as agriculture, government administration/healthcare, utilities, telecom/internet, etc. This will lead to a sharp contraction of near term (next 1-3 quarters) GDP and pull-down corporate revenues and earnings as well. In the short period, it is important that the supply shock is minimised by ensuring that supply and production chains across essential goods (including farming activity) and other segments (when opened up) are intact and functioning, otherwise, problems will get amplified. India was emerging from a combination of cyclical and structural slowdown. The auto sector was in a cyclical downturn for over 4 quarters and expected to turnaround during the year. Sectors such as real estate are to emerge from a structural transformation post demonetisation and RERA, while the banking sector was emerging from asset quality issues. In a way the starting point for India is advantageous. We are coming from a low but improving base of overall activity and the coronavirus is an external shock to the Indian system. Since the cause of the problem is external to India and it is not a structural problem or one of our own making, one can be hopeful that recovery could be fast (if healthcare and monetary/fiscal interventions are successful) as well. However, given the novel nature of the virus, the pandemic problem could persist/spread for longer. In that scenario the recovery as and when it starts will be slower and gradual. A longer pandemic episode could hurt more firms and create more job losses. Thus, it is still a very fluid situation and we are not sure on the magnitude of earnings that might be cut for FY21. For investors, near quarter earnings growth does not change the fair value of good businesses by anywhere close to the magnitude of price corrections we have seen in the market. Hence in a way a lot of the expected medium-term weakness and possibly more has already been discounted by the markets. Since the markets have corrected by over 35%, valuations on all parameters are at attractive levels. The Market Cap to GDP as well as the overall Price/book is now at a level it was during the Global Financial Crisis of 2008-9. Historically, Indian markets have been found at the current valuation range only about 5% of the time. The bond and earnings yield gap are also at a maximum post the GFC. These are attractive entry levels for an investor looking for absolute/relative returns. Of course, the markets can correct more but I cannot predict that. On the other hand, in periods of uncertainty and weak economic cues – strong well-run businesses tend to be more immune and gain market share at the cost of weaker firms. Lastly, major economies have undertaken a lot of monetary/fiscal easing. This will help global economies on the upside when it starts. The monetary expansion will also lead to some money coming back to attractive emerging markets such as India. Domestic money inflows, especially through the SIP route, have held up well in all recent bouts of volatility. I expect this to continue and it shows the better understanding investors have of the underlying volatility and investment horizon expected from this asset class. Q) Once the lockdown is over and we (the whole world) come out of COVID-19, what will be the new normal which the world will be looking at in investments, insurance, food habits, consumption etc.? A) Ultimately, India will retain its structural-demographic advantage. With the low cost of money globally and various reforms carried out in the past, India should be able to attract more external capital. There could be an increasing trend towards greater sourcing from countries beyond China and India could attract more FDI in select industries as one of the alternate manufacturing hubs in the world. There could be a greater move towards online shopping of financial-investment/insurance products, other services – such as education, higher levels of work from home, as well as for online shopping. There could be an increasing shift toward robotic manufacturing. Typically, we would expect more movement towards the organised sector on the criterion of quality and safety in segments such as food staples. Many of these trends were underway post GST and demonetisation. Maybe some trends such as the extensive use of Ola/Uber are reversed as people prefer their own vehicles on safety grounds. Deeper shifts in consumer behaviour will depend on the duration of the lockdown and the pandemic. Additionally, there could be a strengthening of the country’s medical infrastructure and capacity. Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Summarise this report in a few sentences.
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a company faring well on ESG scores by one criterion might have much lower scores. a lot of grey area and a lot of varied definitions of what constitutes ESG. a lot of quality stocks could give multibagger returns if someone is investing now. a mix of lump sum and staggered approach might be fine in the current circumstances.
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The central government is all set to announce the next round of "financial relief package" to tackle the economic fallout of the coronavirus pandemic. The announcement could come next week, according to sources. A top source in the government, who has been part of the strategy-making, said, "The discussions and deliberations at the top level on the package were over almost a week ago." The final round of discussion on the stimulus package took place on May 2 between Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman along with officials of the ministry. Sources say senior PMO officials have been working on final tightening of nuts and bolts of the relief package and the next step could be the announcement. The source, on condition of anonymity, added, "Not all measures which are part of the package need a Cabinet clearance. There are some proposals which will need Cabinet nod. There has been no Cabinet meet for the last two weeks. So one can say this Wednesday there may be a meeting." To prepare the financial system for the big move next, Finance Minister Nirmala Sitharaman will meet CMDs and CEOs of public sector banks on Monday. Also Read: Coronavirus Live Updates: Cabinet Secy to meet states, UTs on Sunday; India cases-59,662, Gujarat cases-7,797 According to sources, the agenda of the meeting may include credit flow, credit sanctions, and disbursements since March 1 and four other items. Govt to borrow more to fund stimulus package On Friday, the government had indicated that the funds for the long-awaited financial relief package were going to come from additional borrowing from the market. It had declared that it would raise its borrowing by over 50% of Budgetary Estimate (BE) during 2020-21. Economic Affairs Department under the Finance Ministry said, "The estimated gross market borrowing in the financial year 2020-21 will be Rs 12 lakh crore in place of Rs 7.80 lakh crore as per BE 2020-21." The government resorts to such borrowing to bridge the gap between its income and expenditure. This provides ample evidence that the government has shed its reluctance to breach the fiscal deficit target. Following this level of borrowing, the fiscal deficit during 2020-21 could go up by 200 basis points (bps). 100 bps translate to 1 percentage point. What could be in the package Last week, the government sources had confirmed that "a package with proposals and implications," had travelled some time ago from the North Block office of the finance ministry to the PMO in South Block. Also Read: FM Nirmala Sitharaman says Rs 18,253 crore disbursed under PM-KISAN scheme during lockdown Various concerned departments like the Department of Financial Services, which deals with banking and related issues, is said to have already submitted their report vis-a-vis measures, implications, and procedures. Ministries like MSME, labour and others have also sent in their proposals and responses. Various sources in the government and its advisory entities claim that the package focuses on relief, rehabilitation and revival post lockdowns and COVID-19 impact on the economy. PM and his office have held a series of meetings with different ministries, departments and statutory bodies like the RBI. Sources have been stating that a "Big Bang" package has not been government's first choice and it has been opting for "targeted packages" for different sectors and segments in a phased manner with active involvement of the RBI. Relief for MSME The PMO is said to have drawn a comprehensive proposal for the micro, small and medium enterprises (MSME) sector that may address both the stress on the entities plus those who work in them. The ministry of MSME had sent multiple proposals for the sector and the PMO is said to have taken the final call. To help the MSMEs, the government is said to be working on providing a guarantee for additional funding of 20% of the credit limit of medium and small entities. This may involve the government guaranteeing over Rs 3 lakh crore loans. Once the government steps in as guarantor, banks will be incentivised to lend to MSMEs. A senior government official said, "Using the loans once, MSMEs kick start operations defaults will not be instant. They may occur only after the deep distress forced by coronavirus spread abated. The department of financial services is said to have submitted its report to the PMO on this proposal." The MSME ministry had submitted proposals like setting up of a special fund to pay up the banks in case of defaults and using the credit guarantee trust to operate the assistance. The government is actively considering ways to address both the supply and demand side of the crisis. Sources say the fiscal relief measures may have strong elements to address the workforce and migrants like those who resorted to protests in various parts of the country or are fleeing back to their native places in large numbers. The other key proposal for the MSMEs has been a direct assistance in the form of wage support for workers to reduce the burden on the entities. Top government sources confirmed the existence of a proposal for MSME getting "payroll support" for employees drafted by the NITI Aayog. This has potential to immediately address the large scale retrenchment and job losses that are being reportedly causing hardships. More money in the hands of the labourers can trigger demand for goods produced by industries and businesses which have been given a go ahead to start working with social distancing protocols. The target of this could be nearly 10 crore workers. The labour ministry has already cleared deferred payment of employers' contributions in the EPF to reduce the burden on MSMEs. The government also said to have on its table a proposal to put money in the hands of the poor and needy. The opposition and experts have been suggesting that the Centre must target the bottom 30-40% of the economic strata, which includes daily wagers and migrant labourers. Ex-Finance Secretary Subhash Chandra Garg in an article recently estimated that the government needs to spend nearly Rs 60,000 crore to provide at least Rs 2,000 direct cash transfer to nearly 10 crore workers for three months. Sources said that several tax and other incentives have been under consideration for over a month to provide a helping hand to large industries and corporates. Manufacturing services and industry provide 42% of employment but their contribution to GDP exceeds 70%. The move by the government is expected to set the tone for the economy. The government's fiscal moves will also decide the next move by the RBI on the monetary front. The RBI sources indicated that the "central bank will now wait for the government's fiscal measures to address the economic distress before deciding its next monetary intervention." The RBI governor Shaktikanta Das on April 17 had announced a slew of measures to improve credit flow and liquidity. More reforms coming? Over the last few days, PM Modi has held several rounds of meetings with ministers, officials and stakeholders. His focus has been on a post COVID scenario in which India could position itself as a competitive manufacturing destination in comparison to China. The government is working on proposals to bring in greater foreign direct investment (FDI), improve ease of working, and system reforms to make India more lucrative for companies exiting China following the COVID-19 outbreak. Sources say that announcements on these lines are also in the pipeline. Sources said that PM has held discussions for interventions in the financial sector and structural reforms along with a strategy to support MSMEs and farmers, liquidity situations and ways to strengthen credit flows. A business' recovery plan is said to have become the mantra in the government and the PM, according to sources, has been flagging the need for generating gainful employment opportunities by helping businesses overcome difficulties and strengthening major structural reforms. Summarise this report in a few sentences.
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the government is all set to announce the next round of "financial relief package" the package is to tackle the economic fallout of the coronavirus pandemic. the final round of discussion took place on may 2. the government is expected to borrow more to fund the relief package. the government has said it will raise its borrowing by over 50% of budgetary estimate.
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The recent intervention by the Reserve Bank of India (RBI) in the non-deliverable forward (NDF) market is expected to provide some stability to the rupee amid capital flight to safe assets during coronavirus crisis, analysts said. There has been an element of surprise in the RBI's timing of intervention which made the move effective, they added. "Going forward, direct intervention in the overseas NDF market along with intervention in the spot market will help in curbing sharp rupee swings and also to some extent slow down the pace of rupee depreciation amid this virus fuelled rout", Sugandha Sachdeva, VP, Metals, Energy & Currency Research, Religare Broking, told Business Today.In. The RBI sold $500 million in the NDF market in March to maintain stability of the rupee, the RBI data showed. The NDF markets allow round-the-clock trading in the non-convertible currencies such as rupee. The trading takes place in overseas markets including Singapore, Hong Kong, Dubai, London and New York markets and doesn't fall under the regulatory purview of the RBI. According to Bloomberg data, the rupee lost over 4 per cent to the US dollar in March as against a 0.5 per cent gain in April. The rupee was the fifth top performing currency in the Asian market last month. "Central bank's actions in the NDF market are aimed to curtain the unwarranted volatility ahead of the financial year end and reduce the unnecessary spread between onshore and offshore market. RBI's mandate is to curb the volatility in the forex market and it is expected to intervene from time to time to reduce excessive volatility," Devarsh Vakil, Head, Advisory, HDFC Securities, told Business Today.In. The RBI recently allowed offshore units of Indian banks to participate in the offshore rupee derivative market to curtail volatility in currency markets due to coronavirus pandemic. Way ahead The fresh escalation in the US-China tensions is expected to manifest itself in the form of diplomatic or trade tensions in the near future, Abhishek Goenka, Founder & CEO, IFA Global, said. On the downside, 74.50 is a crucial support for the USD/INR pair, Goenka added. "Up side momentum would gather steam on break above 76.50 again. Broad trend remains bullish for the pair," Goenka said, adding that the rupee may trade in the range of 74 to 78 per US dollar. Commenting on the expected movement for rupee going ahead, Sugandha Sachdeva said, "Sentiments have also taken a beating amid weak PMI manufacturing numbers, underscoring the impact of coronavirus on the economy, where the overall trend in rupee looks skewed on the downside. The IIP numbers ahead are expected to be weak and are going to further worsen the rupee dollar equation. However, reopening of various economies in a phased manner has boosted risk appetite to some extent and is underpinning the rupee, where 77 mark is guarding it from further depreciation." She expects rupee to gyrate in the range of 75.20 -76.60 in coming days. Largely protected "The Indian markets are pricing in a weak economic scenario as nationwide lockdown is extended. At the same time, they are protected from severe downside as large amounts of foreign capital will look to invest in India at lower levels," Devarsh Vakil said. "We have an inflation targeting central bank with higher dollar reserves which we did not have in GFC 2008, thus we don't expect major depreciation in rupee level unless and until Covid-19 pandemic creates a major health crisis in the world. Rupee is expected to trade in the range of Rs 74.5 to Rs 76.5 per dollar in the near term", Sundar Sanmukhani, Head of Fundamental research desk, Choice Broking, said. Meanwhile, the rupee surged 10 paise to close at 75.63 (provisional) against the US dollar on Tuesday, amid higher domestic equity markets and gains in some Asian currencies. At the interbank foreign exchange, the rupee opened at 75.62 and finally settled at 75.63, registering a rise of 10 paise over its previous close. During the day the domestic unit saw an intra-day high of 75.50 and a low of 75.72 against the US dollar. On Monday, the rupee had settled at 75.73 against the US dollar. Also read: Coronavirus Lockdown Live Updates: After Delhi, Andhra Pradesh hikes liquor price by 75%; India's cases-46,433 Also read: Coronavirus crisis: Govt should write off loans of small businesses, says Abhijit Banerjee Summarise this report in a few sentences.
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RBI sold $500 million in the NDF market in march to maintain stability of the rupee. rupee lost over 4 per cent to the us dollar in march as against a 0.5% gain in April. fresh escalation in the US-China tensions is expected to manifest itself in the near future. the rupee is the fifth top performing currency in the Asian market last month.
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The new Suzuki Ertiga was in the cards and we have had a few glimpses here and there. After several leaks now, the latest MPV from Suzuki has finally come out in the open. The 2018 Suzuki Ertiga was officially unveiled at the Indonesia International Motor Show. The 7-seater car from Suzuki stables boasts major updates both inside and out. The new Ertiga's stance has improved due to the use of stronger shoulder and bonnet lines. The projector headlamps also give it a modern makeover. The new Ertiga seems like a more attractive package with bigger dimensions and a few modern amenities like keyless go and engine start and stop button. To begin with, the 2018 Suzuki Ertiga has been built on the same HEARTECT platform we have seen on the new Swift, Dzire, Baleno and Ignis. The lightweight platform underpinning the new Ertiga offers more rigidity to the structure, resulting in better fuel efficiency and safer drive. The exterior of Ertiga has been redone to give it a more butch look. The front of the car has been radically changed with a new grille and a slimmer headlamp cluster. The 2018 Suzuki Ertiga also gets projector headlamps. On the sides of 2018 Suzuki Ertiga are new shoulder lines and chrome door handles. Towards the back of the car are a LED taillight cluster and a floating roof design (for GX variant). The 2018 Suzuki Ertiga now has two parking sensors. The reversing camera is optional, though. Talking about dimensions, the 2018 Suzuki Ertiga has a more space than the outgoing model, while still remaining compact. The wheelbase remains unchanged at 2,740 mm, while the new Ertiga measures 4,395mm in length, 1,735 mm in width, and 1,690mm in height. With more space to spare, the third-row seats of Ertiga have been made more comfortable. These seats can be folded down to make more boot space. Inside the 2018 Suzuki Ertiga, we get a flat-bottom, tilt steering wheel, wooden-like plastic accents on the dashboard, manual air conditioning and a touchscreen infotainment system. The interior rocks a dual-tone theme. The GX variant will also have an engine start/stop button. The new Suzuki Ertiga comes with some major changes under the hood too. The engine has been upgraded to K15B 1.5-litre four-cylinder VVT engine which can dish out 104hp max power and 138Nm max torque. While Indonesian markets will get only the petrol motor, Maruti Suzuki is expected to bring diesel variants to Indian markets. Also while there is no word on the transmission options, the outgoing model has a 5-speed manual transmission or a 4-speed automatic transmission. The engine has Multi Point Injection technology which conforms to Euro IV standards. Now that the Suzuki Ertiga has been launched in Indonesia, the MPV is expected to land on Indian shores soon. Maruti Suzuki will reportedly bring the new Ertiga to India sometime in August this year. In Indian markets, the new Ertiga will compete against Toyota Innova Crysta and Honda Mobilio. Summarise this report in a few sentences.
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the 2018 Suzuki Ertiga was officially unveiled at the Indonesia International Motor Show. the 7-seater car from Suzuki stables boasts major updates both inside and out. the new model has been built on the same HEARTECT platform we have seen on the new Swift. the new model has a more compact wheelbase, but still remains compact.
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Item 7A. Quantitative and Qualitative Disclosures About Market Risk Market risk is the risk of loss to future earnings, values or future cash flows that may result from changes in the price of a financial instrument. The value of a financial instrument may change as a result of changes in interest rates, exchange rates, commodity prices, equity prices and other market changes. Our exposure to market risk related to changes in foreign currency exchange rates is deemed moderate as further described below. In addition, we do not use derivative financial instruments for speculative, hedging or trading purposes, although in the future we may enter into exchange rate hedging arrangements to manage the risks described in the succeeding paragraphs. Interest Rate Risk We are subject to interest rate risk in connection with borrowings under our Credit Agreement that provides for a $250 million Term Loan that matures in May 2024. The Term Loan currently bears interest, at our option, at variable rates based on (i) a customary alternative base rate (with a floor of 2.00%) plus an applicable margin of 5.75% or (ii) an adjusted LIBOR rate (with a floor of 1.00%) for the interest period relevant to such borrowing plus an applicable margin of 6.75%. Increases in our lender’s customary alternative base rate or LIBOR would increase the amount of interest payable on any borrowings outstanding under this Term Loan. As of December 31, 2019, the Term Loan had an outstanding balance of $250 million. Foreign Currency Exchange Risk We transact material business in foreign currencies and are exposed to risks resulting from fluctuations in foreign currency exchange rates. Our primary exposures are related to non-U.S. dollar denominated revenue and operating expenses in South Africa and the United Kingdom. Accounts relating to foreign operations are translated into U.S. dollars using prevailing exchange rates at the relevant period end. As a result, we would experience increased revenue and operating expenses in our non-U.S. operations if there were a decline in the value of the U.S. dollar relative to these foreign currencies. Conversely, we would experience decreased revenue and operating expenses in our non-U.S. operations if there were an increase in the value of the U.S. dollar relative to these foreign currencies. Translation adjustments are included as a separate component of stockholders’ equity. For the years ended December 31, 2019 and 2018, our foreign currency translation adjustment was a gain of $1.7 million and a loss of $13.8 million, respectively. For the years ended December 31, 2019 and 2018, we recognized foreign currency exchange losses of $0.7 million and $1.7 million, respectively, included on our consolidated statements of operations and comprehensive loss. The foreign exchange rate volatility of the trailing 12 months ended December 31, 2019 was 10% and 7% for the South African rand and British pound, respectively. The foreign exchange rate volatility of the trailing 12 months ended December 31, 2018 was 13% and 6% for the South African rand and British pound, respectively. A 10% fluctuation of foreign currency exchange rates would have had an immaterial effect on our results of operations and cash flows for all periods presented. The fluctuations of currencies in which we conduct business can both increase and decrease our overall revenue and expenses for any given fiscal period. Such volatility, even when it increases our revenue or decreases our expense, impacts our ability to accurately predict our future results and earnings. Inflation We do not currently believe that inflation has had a material effect on our business, financial condition or results of operations, though we continue to monitor costs we incur in higher inflationary economies. Additionally, we continue to monitor all inflation-driven costs, regardless of where they are incurred. If our costs were to become subject to significant inflationary pressures, the price increases implemented by our university clients and our own pricing strategies might not fully offset the higher costs, which could harm our business, financial condition and results of operations. Item 8. Summarise this report in a few sentences.
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Summary:
The company is exposed to market risk related to changes in foreign currency exchange rates, interest rates, and inflation. The company has a $250 million Term Loan that bears interest at variable rates, and its primary exposures to foreign currency exchange rates are related to non-U.S. dollar denominated revenue and operating expenses in South Africa and the United Kingdom. For the years ended December 31, 2019 and 2018, the company's foreign currency translation adjustment was a gain of $1.7 million and a loss of $13.8 million, respectively. The foreign exchange rate volatility of the trailing 12 months ended December 31, 2019 was 10% and 7% for the South African rand and British pound, respectively. The company does not currently
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Strong states grow stronger by putting limits on their own power; weak states become weaker by descending into arbitrariness. India has to choose which it wants to be.That’s the message being given to New Delhi by an international arbitration tribunal in The Hague. The panel threw out the Indian government’s $3 billion tax demand against Vodafone Group Plc, finding it to be in breach of fair treatment under the country’s bilateral investment protection pact with the Netherlands, and awarded costs to the British telco.This ends a decade-old saga that tarnished India’s reputation among foreign investors. Rather than appealing the decision, Prime Minister Narendra Modi’s administration should accept defeat, honor the award, and move on. While much of the blame for this mess belongs to the previous Congress Party-led coalition, Team Modi had six years to end the dispute. Ending “tax terror” was also his party’s promise in the 2014 election that brought Modi to power.If anything, reckless expansion of the state’s power — both in the economy and broader society — has become the norm since then. One hopes that this becomes a moment when Indian politicians of all hues will come together to say, “Yes, we bungled. We should never have amended the tax law retrospectively to go after Vodafone. It cost us more in prestige than we could hope to win.”The quarrel goes back to Vodafone’s 2007 purchase of Li Ka-shing’s India wireless business. The Hong Kong tycoon sold a Cayman Islands-based investment firm to the U.K. operator. That firm controlled, via other offshore entities, CK Hutchison Holdings Ltd.’s 67% stake in Hutchison Essar Ltd., the Indian unit. The taxman wanted a share of CK’s vast capital gains and asked Vodafone to settle the bill from the amount it had withheld from Li’s check. But Vodafone’s lawyers had advised that no tax was applicable. The dispute went to India’s Supreme Court, which held that the government’s tax jurisdiction didn’t extend to the Cayman Islands.Then came the ugly part. The Indian government’s 2012 budget retrospectively amended the tax code, giving itself the power to go after M&A deals all the way back to 1962 if the underlying asset was in India. The vindictiveness was targeted at Vodafone, but also ensnared the U.K.’s Cairn Energy Plc, which in 2006 had transferred ownership of its Rajasthan oil field, the country's biggest onshore discovery in two decades, to Cairn India Ltd., to prepare for the local unit’s initial public offering.What’s worse, the $4.3 billion final assessment order for Cairn Energy came in February 2016. By that time, Modi’s government had been in power for almost two years, giving it ample time to fulfill its promise of a non-adversarial tax regime. After Cairn disputed the levy, New Delhi expropriated its shares in Indian billionaire Anil Agarwal’s Vedanta Ltd., into which Cairn had merged the India unit. The government pocketed the dividends and then sold the stock.The application of the retrospective tax took a farcical turn when, around the Christmas holidays of 2016, a month after a draconian (and once again arbitrary) ban on 86% of the country’s banknotes, India began to instruct fund managers to withhold and pay taxes when investors made a profit selling units in offshore vehicles that had half or more of their investment in Indian securities. Thankfully, this impractical plan was dropped after it was pointed out that it would kill the India-focused funds industry.Cairn shares closed almost 13% higher in London on Friday. The Edinburgh-based company’s arbitration award is also expected soon. Investors have reason to be hopeful after it turned out that even India’s own nominee on the Vodafone tribunal rejected New Delhi’s claim. For Vodafone’s India unit, though, the victory is Pyrrhic. It’s now the victim of a different overreach: a life-threatening $7.8 billion demand for past use of airwaves.In a way, it’s good that data irregularities forced the World Bank to suspend its “Ease of Doing Business” survey, which saw India zoom past 79 nations between 2014 and 2019. The reality on the ground may be very different. Modi’s government didn’t invent the capricious Indian state, but it hasn’t lessened uncertainty or cut red tape. Neither for small startups, nor for large global investors. Appealing the Vodafone award will only mean that it’s once again failing to learn its lesson. Summarise this report in a few sentences.
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the dispute goes back to Vodafone's 2007 purchase of a cayman islands-based investment firm. the taxman wanted a share of CK Hutchison Holdings Ltd.’s 67% stake in. Hutchison Essar Ltd., the Indian unit. the dispute went to the court, which held that the government’s tax jurisdiction didn’t extend to the. Cayman Islands.
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11:14 AM (4 years ago) Sales in September to be higher than in August: Maruti Chairman Posted by :- Rupa Roy India's biggest automaker, Maruti Suzuki India Ltd, expects sales of its cars in September to be higher than the previous month, its Chairman RC Bhargava told on Monday. He said that very high sales are expected on September 29 and 30."We expect that retail sales in September would witness an improvement over August," Bhargava said to news agency Reuters. "The booking levels have gone up substantially compared to last month, and the expectation is that the 29th and 30th of this month will probably witness very high retail sales," he added.September 29th marks the beginning of the 9-day Navaratri festival, which typically witnesses an uptick in sales.Maruti Suzuki stock price opened at a gain of 0.14% today and later the stock rose 4.12% higher to the day's high of Rs 7183.75 on BSE. Summarise this report in a few sentences.
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maruti chairman RC Bhargava says very high sales are expected on 29 and 30. "we expect that retail sales in September would witness an improvement over august," he says. September 29th marks the beginning of the 9-day Navaratri festival. the stock price opened at a gain of 0.14% today and later the stock rose 4.12% higher to the day's high of Rs 7183.75 on BSE.
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New Delhi: The government is planning to give a big push to agriculture exports to capitalise on the rising global demand for healthy and nutritious food products “During this pandemic, people world-over have realised the importance of immunity booster food products like herbal, medicinal, organic and nutri-cereals like jowar, bajra and ragi. India is one of the largest producers of such products. We will promote branding, marketing and export of such niche products which will be in great demand,” said a senior agriculture ministry official.The agriculture export policy launched in 2018 also focuses on cluster-based export promotion of novel, indigenous, organic, ethnic, traditional and non-traditional agri products including value-added perishables.“There is limited scope of export in food grains. We can export rice which we are doing. But our wheat is not competitive in global markets and we produce pulses just enough to meet our requirements. We have to focus on niche products with high value,” the official said.India is a net exporter of agricultural products. In FY19 such exports amounted to ₹2.7 lakh crore and imports stood at ₹1.37 lakh crore.Finance minister Nirmala Sitharaman, last week, spoke of production of herbal, medicinal, nutritious and organic food items through the cluster-based approach for tapping the unexplored export market.“The government has announced a stimulus of ₹10,000 crore to promote medicinal, organic and ethnic food products through clusterbased approach. For example, food products rich in nutritious ragi can be developed in Karnataka, bamboo shoots in Assam and chillies in Andhra Pradesh,” said another official.He said that the ₹4,000-crore package for promoting planting of herbal plants will help farmers earn ₹5,000 crore by selling it in domestic as well as global markets.According to the agri export promotion body Apeda chairman PK Borthakur, demand for India’s organic agricultural products is about ₹8,500 crore, out of which 60% is international.“India exported organic products worth ₹5,151 crore in 2018-19, from ₹3,453 crore in 2017-18,” Apeda had said in a statement.The proposed amendment in the antiquated Essential Commodities Act 1955 will also help the government in framing a steady export policy for cereals, pulses and onions which have been brought out of the gambit of this law along with edible oil which we import in large quantities. Summarise this report in a few sentences.
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government plans to give a big push to agriculture exports to capitalise on the rising global demand for healthy and nutritious food products. agriculture export policy launched in 2018 also focuses on cluster-based export promotion of novel, indigenous, organic, ethnic, traditional and non-traditional agri products. the government has announced a stimulus of 10,000 crore to promote medicinal, organic and ethnic food items through cluster-based approach.
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When Shantanu Sengupta, managing director and head of consumer banking at DBS Bank India, stepped into his role in 2015, the retail banking landscape was changing fast with technology developments being the driver both in payments and lending businesses. Since then, DBS Bank has launched Digibank app, through which one can open a bank account on phone after the Know Your Customer (KYC) process. This year, the bank will target lending by providing digital credit to its customers, and also launching credit cards. The bank has already launched mutual funds on its digital platform and plans to offer insurance as well. Sengupta spoke to Mint about his plans for DBS Bank in India for 2018. Edited excerpts: You took charge in 2015. What has changed since then and what is your outlook for this year? When I joined, the bank was at a stage where we were thinking of launching a digital bank. Lots of banks offer a digital platform but it doesn’t necessarily mean being completely digital. In the mean time, IndiaStack came in, which the government had built, and was in sync with what we wanted. (IndiaStack is a system that has five programmes: Aadhaar, e-KYC, e-signature, Digital Locker and Unified Payments Interface (UPI). Financial services companies can use this platform to access information about customers.) In 2015, we had a limited presence in the country on the retail side of the business. We were thinking if we could build a solution where a customer didn’t have to talk to the bank. Then, in April 2016 we launched our DigiBank product. The concept of banking itself had changed to being on the go. By then, a large part of the population had started using smartphones. At that time, this was a new concept and we knew it would take time to catch up. We started with banking and payments solutions. While we were doing this, the payments landscape was changing even faster in India. Initially, there were IMPS, RTGS and NEFT (Immediate Payment Service, Real Time Gross Settlement, and National Electronic Funds Transfer). Gradually, UPI came in and there was scepticism about how long it will take to grow. We integrated UPI in the second quarter of 2017 and QR code in the first quarter of calender year 2017. We believe that you can’t increase adoption simply by launching more products. After UPI and QR code were launched, what kind of transactions did you see? We launched UPI in May 2017. We wanted to build the UPI infrastructure within the bank app; most banks have built a separate app for UPI. In terms of UPI, we have done over 6 million transactions so far, we can do much more. Many non-bank fintech (firms) are offering UPI. As that happens, you will see a rise. The average transaction on UPI for our customers is Rs2,000-3,000. But it is too early to call it a trend. It is not a trend that we see going forward because in the past 2-3 months, there has been an increase. In case of QR code, the reason why the adoption rate is not as per what we anticipated is that the acceptance of QR code has not been that high. You have to build both sides of infrastructure. The government is promoting QR code. I think it will pick up. Charges are coming down. How many customers was the bank able to get through the mobile-only banking product? Have you made any changes since the launch of your mobile-only bank app? Though there is 100% tele density, the infrastructure is not good. Sometimes you don’t get connection and there are blind spots. Hence, after we launched the mobile banking app, we later provided internet banking (also) for this product. We built phase 1, which is a basic internet bank account to access your money and make payments. In the next phase, you can make investments through the platform and add payees. We have got close to 2 million customers and have just crossed 500,000 savings account holders. We started with an e-wallet and then moved to savings account. Recently, RBI (Reserve Bank of India) has allowed banks to use Aadhaar for OTP-based eKYC, which we launched 2 months ago. It is a limited savings account. Opening a savings account is just the first leg. Have you been able to cross-sell products to the 2 million customers who came in through the mobile-only bank app? When it comes to the demography of customers, 80% are below the age of 30, and are male. All of them have PAN (Permanent Account Number), Aadhaar and smartphones. Most are salaried and in the top three markets—Mumbai, Delhi and Pune. For these customers, we have launched mutual funds, and the process is paperless. By the first quarter of calendar year 2018, we plan to launch digital loans. We are also using the data that we have. As banks we have not done a good job in terms of using data adequately. Next is bancassurance. We have three partners—Tata AIA Life Insurance Co. Ltd, Aditya Birla Sun Life Insurance Co. Ltd and Aviva Life Insurance Co. India Ltd. We have built an open architecture where the system throws an option based on customer’s search choices. We have taken out mis-selling from the whole equation. We plan to offer health, general and life insurance. This should happen by the second or third quarter of 2018, since it is a bit complex. Will you offer small-credit unsecured loans? Looking at the profile of our customers, it is not going to be a very small amount—Rs5 lakh being the maximum amount. The minimum would be Rs1 lakh. It would be an instant loan. Loans will be integrated and it would be a pre-approved loan. To provide credit we will be looking at a combination of both traditional data such as Cibil score and alternate data such as payment transaction data. Towards the last quarter of 2018, we will offer credit cards. Currently, we don’t have unsecured loans. Coming to mutual funds, how many fund houses have you tied up with? Will you give advice as well? We already have 12 fund houses and we are expanding further. We want to be selective and we don’t want to confuse customers. We also want to focus on our partners’ abilities to provide products online. We are not into the advisory business; we are purely distributors. We are not expecting big-ticket transactions. The target customers are young and we want to create discipline around savings. In terms of choice of partners, we looked at the top partners and the ability to create digital platforms. We are assuming that the customers who are on our platform know the basics of mutual funds. We only have equity, balanced and debt funds and we encourage SIPs. Since the bank customer has KYC, it becomes seemless to provide mutual funds. When you launched the mobile banking app, the focus was on bots. Isn’t that just a fancier version of a search engine? Bot as an industry is evolving. You have to work with the bot to make it intelligent. In the past 2 years we have been making it more knowledgeable to respond to the queries. Over the past 12 months, we have worked on it. The bot can now handle a large part of the basic transactions. Well, has it reached where we want it to be? No, not yet. We want to take the bot to the next level where it can engage with customers. Today it responds to the customers. We want to make it more engaging. It is more than a search engine but not a complete virtual assistant. It can execute transactions for you but it is not intelligent enough to take decisions yet. Hopefully, in the next 1 year, you should see it become far more efficient. 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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dbs bank's digital bank is a digital platform that aims to be fully digital. the bank has already launched mutual funds and plans to offer insurance. the bank has also launched a mobile app to help customers open an account. the bank has also launched a mobile app to help customers open an account. it is also planning to launch a credit card and a mobile payment solution.
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William H. Gates Sr., a lawyer raised in the Great Depression who helped his son give away an immense fortune, has died. He was 94. He died Monday at his beach home on Hood Canal, Washington, according to Bill Gates III’s family office. The cause was Alzheimer’s disease. Gates saw his middle child grow from a headstrong boy to one of the most admired business leaders of his generation who became the world’s second richest person, with a net worth of more than $123 billion, according to the Bloomberg Billionaires Index. When Bill Gates started giving away the billions he’d made as co-founder of Microsoft Corp. he turned to his father to advise his charitable foundation. “I never imagined that the frequently argumentative little boy I faced each night at dinner, the one eating my food and using my name, was to be my future employer," Gates said in a 2003 speech to fellow members of Rotary International, a worldwide service organization. For their earliest philanthropic endeavors in the 1990s, the elder Gates worked from a basement office at home or, as a British newspaper reported, from the vinyl booth of a burger joint where he often ate lunch. Funding Pleas The William H. Gates Foundation, started in 1994 with an initial stock gift of $94 million, concentrated its giving on global health and community groups in the Pacific Northwest. The elder Gates scanned pleas from the serious to the whimsical. One man suggested funding a ballroom dancing television channel, he wrote in his 2009 memoir, “Showing Up for Life." In the book, he also recounted getting an appeal from his son and his son’s wife, Melinda. They had learned that many children die each year from illnesses that are rarely fatal in developed countries, such as measles, malaria and diarrhea. “Dad, maybe we could do something about this?" they wrote. The foundation, now known as the Bill & Melinda Gates Foundation, has committed more than $50 billion to expand childhood immunization, eradicate polio, provide seeds to African farmers and improve American public schools, according to its website. The elder Gates served as one of the foundation’s co-chairs, along with his son and daughter-in-law. “We have to be helpful to each other or it would be an impossible world," he said in a May 2009 interview with the Seattle Times. “This is not only good religion but very practical for economy and humanity." Ballmer Connection Earlier, he played a role in the development of Microsoft, the world’s largest software company. Over dinner in 1980, he helped his son recruit a friend from Harvard University, Steve Ballmer, to work for Microsoft. Ballmer left graduate school and later became chief executive officer of the Redmond, Washington-based company. The elder Gates operated the slide projector at his son’s first keynote address at the Comdex trade show in Las Vegas, in 1983. “Without me, you wouldn’t be here," he joked at one meeting of Microsoft employees. William Henry Gates II was born Nov. 30, 1925, in Bremerton, Washington, an hour’s ferry ride from Seattle. He said in his memoir that he learned his work ethic from his father, who owned a furniture store in a town hit hard by the Great Depression. Eagle Scout With his Boy Scout troop, Gates felled trees and worked two-man crosscut saws to build a lodge in the woods. He became an Eagle Scout. He enlisted in the U.S. Army during World War II in 1944 and served in Hokkaido, Japan, and Tokyo after the Japanese surrender. Returning to Seattle, he attended the University of Washington under the GI Bill and received a law degree in 1950. While there he asked a university friend, Mary Maxwell, to set him up with one of her sorority sisters -- preferably a tall girl, because he stood 6 feet, 7 inches tall (2 meters). Mary, at 5 feet, 6 inches, stood on her tiptoes and suggested herself, Gates recalled in his memoir. They married two years later. In addition to the son they called “Trey" -- for William III, his name before father and son became simply Sr. and Jr. -- the couple had two daughters, Kristianne and Libby. Their son’s intellectual intensity and headstrong nature at times led to a battle of wills, Gates wrote. Parental Discipline Once, the younger Gates dawdled in his room as the family waited in the car. His mother asked what he was doing. “I’m thinking, mother," he replied, according to his father’s recollection. “Don’t YOU ever think?" On another occasion, the future software mogul, then 12, got so nasty with his mother that his father threw a glass of cold water in his face, according to an April 2009 Wall Street Journal article. “Thanks for the shower," young Gates replied. His parents took him to a counselor, who advised them to give the youth more freedom. Later, the young Gates demonstrated his first commercial software, a program to measure traffic that he wrote with his friend Paul Allen, at the kitchen table. The elder Gates built his law practice at the Seattle firm that became Preston Gates & Ellis LLP, then part of K&L Gates LLP. Among its clients was Microsoft, which Gates’s son founded with Allen in 1975. Aside from his law work, Gates served as a trustee for more than two dozen Pacific Northwest groups, including the Greater Seattle Chamber of Commerce and King County United Way. In recent years, he was also lent his name to proposals for higher estate and income taxes. Voters rejected a state income tax initiative he supported in 2010. Mary Gates died of cancer in 1994. The elder Gates married his second wife, Mimi Gardner Gates, the former director of the Seattle Art Museum, in 1996. 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 cause was Alzheimer's disease. Gates' son and daughter-in-law helped him give away billions. he was the world's second richest person. the elder Gates worked from a basement office at home or a burger joint. he helped his son give away more than $50 billion. he died at his beach home on Hood Canal, washington.
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By Honey Katiyal The Indian Government on August 5 created history by revoking Article 370 and 35A that grants special status to Jammu and Kashmir. The landmark decision that bifurcates the state into two separate union territories i.e. Jammu & Kashmir and Ladakh has not only brought a big cheer to the whole nation but has also opened a new gateway for the real estate market and investments in the country. Till now, Article 35 A has stopped outsiders from acquiring any land or carrying out real estate investment in the state. But, now the history has bygone and post this announcement, the hilly and the serene land may witness a surge in investment. It may be in residential, commercial, retail or hospitality segments. The significant move of scrapping the long-prevailing Article 370 has opened floodgates of many potential opportunities in these depressed property markets which were lacking behind in property prices as well as lucrative investments. Deterred private investments, shutting out of job opportunities has curtailed the economy of J&K leading to slow growth. Because of this, being a tourist destination, the economic growth of the two cities was far behind from their counterparts or other Tier-2 cities. Moreover, the non-allowance of investing in immovable property by non-residents was another keynote challenge that was the part of Article 35 A. All this will now be addressed once the changes will be ratified and smoothly taken up by both UT. But, then as said that every new move comes with some special attention. Although the face of the realty market will be going to change, investors and the realty developers must take cautious steps before entering into the market as it is too early to predict the future. With problematic geography and unstabilized socio-political situation, the residential and commercial market may take some time to catch up the momentum. But, with organised infrastructural developments in segments like hospitality, tourism, entertainment, and retail the above real estate segments may sooner attract better investment opportunities. Such moves will also create a positive impact on the depreciating property value and prices prevailing for years in both Jammu and Kashmir. Some of the prime localities have not even seen a jump in the price from a decade. So, the removal of the restriction on property buying and selling will further appreciate the price of land parcels and buildings in these prime localities. Furthermore, apart from the government policies like a strict RERA, the local investors have to come up and build a strong real estate network to enhance the investors’ confidence. The growth model of other tier-2 cities where the local investors attracted big developers and firms to add thrust to their property market is a perfect example. Following the same model, even these two hilly states can in the future become an investment hotspot for HNIs and NRIs who always look to invest in scenic surroundings and lucrative markets apart from mid-level buyers. The future of the real estate market is bright in both Jammu and Kashmir, but the investors must not get swayed away by this. A pragmatic approach is very much necessary to achieve returns and earn a profit from these distressed markets. The author is CEO & Founder Investors Clinic. Summarise this report in a few sentences.
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the decision to bifurcate the state into two separate union territories has brought a big cheer to the whole nation. it has also opened a new gateway for the real estate market and investments in the country. the significant move of scrapping the long-prevailing Article 370 has opened floodgates of many potential opportunities. the move will create a positive impact on the depreciating property value and prices prevailing for years in both the state.
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Credit and Finance for MSMEs: As Covid pandemic has squeezed the funding pipeline for the Indian startup ecosystem pushing many early-stage startups to halt operations or shut non-core businesses, a host of such companies are now looking to register themselves as MSMEs. Multiple startups, Financial Express Online spoke to, are now preparing to switch as MSMEs to benefit from the economic package announced by the Finance Minister Nirmala Sitharaman last month. Overall, the minister had rolled out six measures to help MSMEs tide over the financial crunch and become more competitive in competing with foreign businesses. “We had a clear mindset of generating large revenue in the past three months. Now everything has been changed and our business model cycle has been disturbed. We are also facing cash crunch problems like other companies. As the government has launched collateral-free loan opportunities for MSMEs, we are looking forward to registering for the same as we fall in the right eligibility criteria,’ Abhishek Gupta, Founder and Director, OxyGarden told Financial Express Online. OxyGarden makes indoor air sanitizers and was incorporated a few months back. Delhi-based Incubsence, which makes contactless attendance system for businesses, suffered significantly as the electronics manufacturing came to a standstill during the lockdown. The segment is in direct competition with Chinese manufacturing. The present scenario benefits China more than India as Covid started to impact India at a time when China was about to reopen its economy. Incubsence had to stop its production of contactless attendance device, contactless access control systems etc. “The two months was enough for Chinese companies to sell their products to India since they could meet the demand as Chinese factories gained consciousness,” Diksha Deo, Founder and CEO, Incubsence told Financial Express Online. Deo said the startup would be applying for MSME registration after an internal discussion in order to secure investment for manufacturing and scaling production. “We can’t let the customer wait for weeks for the order to be delivered. Hence with more capital infusion with the help of the government, we could meet the demand and reduce delivery timeline,” she added. The government on Tuesday had announced multiple schemes to boost electronics manufacturing in India – Production Linked Incentive Scheme, Scheme for Promotion of Manufacturing of Electronics Components and Semiconductors and Modified Electronics Manufacturing Clusters scheme. Also read: MSMEs call govt’s decision for funding NPA accounts historic; hail approval to revised definition According to a LocalCircles survey in April, 74 per cent startups and small businesses (out of 13,970 responses) expected shutdown or scaling down of their businesses in the following six months. “Reality is that early-stage startups are very vulnerable. They don’t have cash reserves like large companies. They would not be going to make any projections and so next round of investor will not going to see the potential of the company because the market is gone not just disrupted,” Padmaja Ruparel, Co-founder, Indian Angel Network had told Financial Express Online. Rs 3 lakh crore of the collateral-free scheme was the highlight of the six announcements made by Sitharaman last month for MSMEs. Eligible MSMEs would have up to Rs 25 crore outstanding and Rs 100 crore turnover to secure an emergency credit line from banks and NBFCs up to 20 per cent of entire outstanding credit as on February 29, 2020. MSMEs would be able to apply for the scheme till October 31, 2020. The government would provide 100 per cent credit guarantee cover to lenders on the principal and interest amount. Apart from securing easy credit, startups are exploring the MSME route for faster recovery of dues as mandated by Sitharaman in her announcement for MSME buyers to clear dues within 45 days. “The government’s objective is to protect the MSMEs’ interest. Thus it puts an obligation on companies to pay-up all dues to MSME registered vendors within a period of 45 days from date of delivery of goods/services so that MSME vendors do not suffer because of non-payment of dues. This was our primary thought process to get ourselves registered under MSME,” Akhil Aryan, Co-founder and CEO, ION Energy told Financial Express Online. The four-year-old startup develops technologies to improve the life and performance of lithium-ion batteries that power electric vehicles and energy storage systems. “Access to collateral-free debt capital would be a big boost for startups in this period of uncertainty. Especially during a systemic crisis, the lack of access to its traditional funding pools (venture capital) can push otherwise strong startups to the brink of failure. Access to non-dilutive debt can be a significant lifeline in a period like this,” Utkarsh Sinha, Managing Director, Bexley advisors told Financial Express Online. Manufacturing or services startups meeting the investment and turnover limits as stated under the revised definition can register themselves as a small business on the Udyog Aadhaar portal with details as per the founder/promoter Aadhaar card. The investment limits for micro, small and medium enterprises are up to Rs 1 crore, Rs 10 crore and Rs 50 crore respectively. For turnover, the limits are up to Rs 5 crore, Rs 50 crore and Rs 250 crore respectively. Besides meeting the two criteria, “the startup is not required to change anything with respect to its business to become an MSME. The whole process doesn’t take over two-three days,” said Gupta. Summarise this report in a few sentences.
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multiple startups are now preparing to switch as MSMEs to benefit from the economic package announced by the finance minister last month. the minister had rolled out six measures to help MSMEs tide over the financial crunch and become more competitive in competing with foreign businesses. the government on Tuesday had announced multiple schemes to boost electronics manufacturing in india. the government has also launched collateral-free loan opportunities for MSMEs.
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NEW DELHI: Benchmark indices Sensex and Nifty on Thursday opened on a poor note after the US Federal Reserve hiked interest rates for the second time this year and hinted at two more such hikes in the remainder of 2018.Concerns over widening current account deficit (CAD) at home and data showing lower-than-expected Chinese factory output growth too weighed on the sentiment. Besides, all eyes were on US President Donald Trump 's meet with his top trade advisers later in the day to decide on tariffs on Chinese goods.At 9.26 am, the BSE Sensex was trading 95.84 points, or 0.27 per cent, lower at 35,642.40. Nifty50 was ruling at 10,820.90, down 35.80 points, or 0.33 per cent.IT stocks fell as rupee appreciated against the US dollar in morning trade. Wipro was the top Sensex loser with 1 per cent drop. TCS and Infosys too declined up to 0.9 per cent. SBI, Axis Bank, ICICI Bank, NTPC and Reliance Industries shed up to 0.7 per cent.On the upside, Bharti Airtel advanced 1.57 per cent to Rs 382. Dr Reddy's Labs gained 1.38 per cent to Rs 2,283.10. Sun Pharma, ONGC and HDFC Bnk added up to 0.7 per cent.Asian markets were down up to 0.7 per cent. Earlier in the morning, China reported lower than retail sales in May grew to 8.5 per cent. This is against an expectation of 9.6 per cent. Factory output growth for the country during the same month stood at 6.8 per cent. This was against an expectation of 7 per cent. Domestic imbalance in development still exits, it said.At home, data on Wednesday showed India’s external position turned weaker with the current account deficit (CAD), the excess of spending overseas than earnings, more than quadrupled in the fourth quarter of FY18 due to soaring commodity prices. For the full fiscal year too, it rose sharply.On Thursday, WPI figures will be released for May. The wholesale inflation is likely to rise to 3.9 per cent in May from 3.2 per cent in the previous month, said Nirmal Bang Institutional Equities. While base effect has a role to play, it also reflects higher food prices and pass-through of higher industrial commodity prices, the brokerage said. "Core WPI inflation is also likely to harden to 3.5 per cent from 3.2 per cent in the previous month," it said. Summarise this report in a few sentences.
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Sensex and nifty opened on a poor note after the US Federal Reserve hiked interest rates for the second time this year. all eyes were on US president Donald Trump's meet with his top trade advisers later in the day to decide on tariffs on Chinese goods' besides, all eyes were on. US president. Donald Trump's meet with his top trade advisers later in the day to decide on. tariffs on Chinese goods.
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live bse live nse live Volume Todays L/H More × While the market may have fallen around 10 percent from its peak, experts such as Gaurav Jain, Director, Hem Securities believe that the worst may be over now. “In the next quarter, the market should settle and then a pullback is likely,” Jain told Moneycontrol’s Uttaresh Venkateshwaran & Sunil Shankar Matkar. He expects largecaps to move ahead and midcaps will play catch-up. He expects a broad-based pick up in the market going ahead. “In the past few days, a few stocks have risen, which have pushed the market. We should start seeing a pick-up in many more stocks. Essentially, people are not in a panic stage, while retail investors have looked to book profits and are not in a hurry to invest,” Jain further added. Edited excerpts: The market has been trading off the previous high points. What is the outlook for D-Street going ahead? Over the last quarter, we saw events such as the Union Budget, which introduced taxes on long term capital gains (LTCG). Global markets reacted negatively, while big IPOs also sucked liquidity from the market, among other factors. As such, the market had a good run up in the past two three quarters. Related stories Gaurav Jain Director|Hem Securities In the next quarter, the market should settle and then there could be a pullback. Next quarter should be of accumulation and positive movement. So, what kind of returns are you expecting from this market? We are in an election year. So, the market could behave differently with results coming on. Overall, for FY18 we are looking at 8-10 percent returns. What can be seen as triggers for this market? Firstly, many companies’ results were affected in one quarter on the back of Goods and Services Tax (GST). With new GST Bill coming in full flow, it should give positive flow for most sectors. Even as the e-way bill is introduced, some companies could face some issues at the start and then gradually get comfortable with it. Secondly, look at growth visibility in the Sensex and Nifty. Several managements are hinting at positive cues. Earnings could improve and several companies have done their expansions on their side. Lastly, we have to wait for how monsoon pans out. So, overall there is positive momentum and investors are quite bullish on India even at this point. Does that mean we could go back to the record high levels? Probably… What are you hearing on private capex plans? Are they willing to spend on that front as well? Most companies, the big ones especially, have done their share of capital expenditure. One important reason why this is happening is due to change in technology that is erupting. For instance, look at telecom sector. In case Reliance Jio comes up with a new technology, rivals also tend to counter those. In case of textiles, many things have happened and firms are adding up more technology and machines. With changing technology, fast-growing companies need to adapt to it and they are deploying resources in those areas. Could you throw some light on the state of midcaps? How do you expect them to perform going forward? Largecaps should start moving first, going forward, followed by midcaps. Investors currently are playing conservative as they saw their stocks bleeding all through the last quarter. Hence, the money is going into largecaps right now. But what about valuations for several segments in the market…how did the IPO market perform in FY18? Look at the number of IPOs that came up with multiples of 30 and 40 times. Fund managers that we spoke to are talking about large systematic investment plans (SIPs) that have to be deployed into such stocks and that is probably why such high multiples were seen. In FY17, we saw around 37 IPOs hitting the market and this figure could be higher this fiscal, looking at the prospectuses filed and information available from merchant bankers. Also, IPO sizes are a lot larger now. But will investors have the appetite going forward? Institutional investors will have it. They will always look at beaten down stocks and they also do not have issues with funds. Currently, retail investors are investing less. If they have Rs 100 with them, they are looking to invest Rs 20 right now. In fact, many retail investors have booked profits in the past quarter. Is there much downside from the current market levels? I don’t think so. The worst should already be over. In the past few days, a few stocks have risen, which have pushed the market. We should start seeing a pick-up in many more stocks. Essentially, people are not in a panic stage, while retail investors have looked to book profits and are not in a hurry to invest. So, what will your advice be to a 35-40-year old investor? They must invest in mutual funds. But you could also do it making money by directly investing in equity markets as well. What sectors are you looking at currently? We expect pharmaceuticals to perform, while it could be a challenge in case of information technology names. You can look at infrastructure sector as well. These companies are flooded with orders. On banks, it is clearly not the case that all PSU banks are bad. Right now, people are not trusting PSU banks and private banks are usually considered more transparent. It is a play on perception and that could be seen in cases of a recent listing such as Bandhan Bank. The IPO came at a very good multiple and still listed at good returns. These are companies with professional management which are growing along with having fast execution and chasing for business. As such, we were seeing a shift to private sector banks, but currently investors also do not know about hidden concerns in PSU banks too. LTCG tax on equities has become a reality now. Are you getting queries about it and what are you telling them? I think the sentiment around it has been already digested in the market. People are taking in the transition in stock market. I feel that this is not an issue at this point. How much of a risk is political scenario for the market? The market tends to be very volatile on political instability. As soon as there are chances of dent to existing government, it starts reacting. The question is not about which government, but about a stable one. This is important from a foreign investor perspective. These would have regular impact but not larger level…the market will make a comeback once the elections are over. As we move into end of this year (and closer to general elections), investors may hold for couple of months to understand what is happening (on the political front). On the global front, any statement from the US with respect to protection of its own trade boundaries is a major risk for the market. Lastly, what are your top stock picks for FY19? Disclosure: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd. Follow @UttareshV Summarise this report in a few sentences.
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the market may have fallen around 10 percent from its peak, but experts say that the worst may be over. "in the next quarter, the market should settle and then there could be a pullback," says Gaurav Jain, Director, Hem Securities. he expects largecaps to move ahead and midcaps will play catch-up. he also expects a broad-based pick up in the market going ahead.
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Bitcoin investors, which include top hedge funds and money managers, are betting the virtual currency could more than quintuple to as high as $100,000 in a year. It's a wager that has drawn eye-rolls from skeptics who believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold. Since January, bitcoin has gained 160%, bolstered by strong institutional demand as well as scarcity as payment companies such as Square and Paypal buy it on behalf of customers. Bitcoin is within sight of its all-time peak of just under $20,000 hit in December 2017. It debuted in 2011 at zero and was last trading at $18,415. Going from $18,000 to $100,000 in one year is not a stretch, Brian Estes, chief investment officer at hedge fund Off the Chain Capital, said. "I have seen bitcoin go up 10X, 20X, 30X in a year. So going up 5X is not a big deal." Estes predicts bitcoin could hit between $100,000 and $288,000 by end-2021, based on a model that utilizes the stock-to-flow ratio measuring the scarcity of commodities like gold. That model, he said, has a 94% correlation with the price of bitcoin. Citi technical analyst Tom Fitzpatrick said in a note last week that bitcoin could climb as high as $318,000 by the end of next year, citing its limited supply, ease of movement across borders, and opaque ownership. Those numbers though are a head-scratcher for Toronto-based Kevin Muir, an independent proprietary trader. "Any hedge fund model on bitcoin is rubbish. You can't model a mania," Muir said. "Is it plausible? For sure. It's a mania. But does anyone actually have a clue? Not a chance." DEARTH OF SUPPLY Bitcoin relies on so-called "mining" computers that validate blocks of transactions by competing to solve mathematical puzzles every 10 minutes. The first to solve the puzzle and clear the transaction is rewarded new bitcoins. Its technology was designed to cut the reward for miners in half every four years, a move meant to curb inflation. In May, bitcoin went through a third "halving," which reduced the rate at which new coins are created, restricting supply. That halving has kickstarted bitcoin's renewed ascent. Square's Cash App and PayPal, which recently launched a crypto service to its more than 300 million users, have been scooping up all new bitcoins, hedge fund Pantera Capital said in its letter to investors on Friday. That has caused a bitcoin shortage and has driven the rally in the last few weeks. BIG FUNDS BUYING? The so-called whale index, which counts addresses or wallets holding at least 1,000 bitcoins, is at an all-time high, said Phil Bonello, research director at digital asset manager Grayscale. Bonello said more than 2,200 addresses were linked to large bitcoin holders, up 37% from 1,600 in 2018, suggesting that institutional money has stormed in. Investors like Stanley Druckenmiller, founder of hedge fund Duquesne Capital, and Rick Rieder, BlackRock Inc's chief investment officer of global fixed income, have recently touted bitcoin. Retail investors though are still mostly sidelined due to the pandemic's effect on the economy. But with the entry of Square and PayPal, Lennard Neo, head of research at crypto index fund provider Stack Funds, expects a deluge of retail demand more intense than in 2017. Neo forecasts bitcoin to reach $60,000-$80,000 by the end of 2021. Tempus Inc currency trader Juan Perez was unimpressed, even shocked, with all the lofty forecasts and said a bet on bitcoin at $100,000 next year would be a bet on the collapse of the global financial system. "Governments around the world won't let that happen. They will not let fiat currencies collapse just like that," Perez said. Summarise this report in a few sentences.
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bitcoin investors are betting the virtual currency could more than quintuple to $100,000. skeptics believe the volatile cryptocurrency is a speculative asset rather than a store of value like gold. bitcoin is within sight of its all-time peak of just under $20,000 hit in December 2017. a skeptic says bitcoin is a speculative asset rather than a store of value like gold.
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Nine out of every ten showrooms of two-wheeler manufacturers are now operational across the country. Customer enquiries and even bookings have reached to pre-covid levels for some players. Pent up demand and the need for private mobility may be the reason behind the spurt. More on this later in the copy but first here are all the important headlines of the week from the auto space. Motherson Sumi aims for $35bn turnover in 5 years Motherson Sumi System’s desire to grow business is hitting highs, COVID-19 notwithstanding. The auto parts manufacturer wants to triple revenues to $35 billion over the next five years and develop new business segments like aerospace, defence, information technology and healthcare. The previous five year plan which started in FY16 was to achieve a three-fold increase in consolidated revenues to $18 billion but it closed well short at $12 billion. Retail car volumes drop 87% in May Automobile dealers' body FADA on Thursday said passenger vehicle (PV) retail sales in May declined 86.97 percent to 30,749 units as compared to same month last year, hit by coronavirus-led lockdown. According to Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,225 out of the 1,435 regional transport offices (RTOs), PV sales stood at 2,35,933 units in May 2019 Hero MotoCorp cuts capex to Rs 600 crore Hero MotoCorp, India's largest two-wheeler maker, has slashed its capital expenditure (capex) programme by 40 percent to Rs 600 crore for FY21, in line with the rest of the auto industry. The manufacturer of Splendor and Maestro, however, clarified that there has been no cutback on investments on new product development and R&D. Mahindra ready to cede control of SsangYong Nearly a decade after acquiring majority stake, Mahindra & Mahindra (M&M) is ready to cede control of its beleaguered Korean SUV-manufacturing company SsangYong Motor Company (SYMC) after having failed to turnaround the subsidiary. SYMC is one of the several loss-making subsidiaries, which will be under the M&M board’s scanner, that will warrant some strategic decisions in the near future, senior executives talking to the media post the March quarter announcement said. Honda to replace fuel pump in 65651 cars Honda Cars India (HCIL) on June 11 said it would voluntarily replace fuel pump in 65,651 units of its select car models manufactured in 2018. The fuel pumps installed in these vehicles may contain defective impellers, which could, over time result in engine stopping or not starting. Demand for bikes, scooter back to Pre-Covid levels Bike and scooter manufacturers are witnessing a surge in demand with the lifting of the lockdown powered by the need to procure privately mobility. Booking numbers shared by dealers are similar to pre-covid days for some of the companies. Eicher Motors-controlled Royal Enfield for instance used to clock 60,000 units a month in sales before the lockdown. The company now states that after the reopening bookings have almost scaled back those levels. Speaking to mediapersons after announcement of March quarter financials Vinod Kumar Dasari, CEO of Royal Enfield & Whole Time Director Eicher Motors said, “Around 85-90 percent of the dealerships are now open and our bookings are now near pre-COVID levels”. With 100 percent of vendor partners now operational Eicher is pushing for upping production at Royal Enfield. While customers have returned to Royal Enfield its premium pricing notwithstanding they have also started to crowd the showrooms of Hero which is the market leader in budget bikes. Naveen Chauhan, Head of National Sales, Hero MotoCorp said, “There is an uptick. Customer is coming and asking for our products. Overall, we see this as a very positive cue. And in terms of inquiries, we are right up there. Week-on-week these numbers are improving and this is a positive trend we see”. Pent-up demand, need for individual mobility due to social distancing norms, strong rural demand, government-backed initiatives, easy finance schemes, discounts and a good monsoon is expected to augur well for the two-wheeler industry. For the industry 80-90 percent of their total dealership strength have already started functioning. Except for markets in Gujarat and Maharashtra, which have been worst hit by the pandemic showrooms in the rest of India have reopened. N. Radhakrishnan, President, CEO & Additional Whole-Time Director, TVS Motor Company said, “Markets are opening up. We expect to gain momentum given the social distancing norms. Higher penetration of retail financing is likely to help. The series of relief measures taken by union government will also help the liquidity, and it will have definitely an effect in the medium and long term.” Manufacturers are now concerned about ramping up production since factories are still operating at less than half of their actual capacity. This is due to limitations to manpower strength due norms defined by the local administrations and lower supplies of parts from vendors. Reverse migration of labour created manpower shortages across industries including the automobile sector. The auto component supplying companies were the worst hit. However with factories now reopening steadily and gradually looking for a ramp up in production this issue is negated. Niranjan Kumar Gupta, CFO, Hero MotoCorp said, “Over the last 2-3 years, we have been chasing retail. And now if retails are chasing production, I think it's a good problem to have, especially coming on the back of low inventory that we opened up the year with. We see manpower for our plant is coming back, of course not to the full level now. But given that our general pay scale, also for contractors, casuals or workers, is quite remunerative compared to their alternative options. We do expect a lot of them to come back, which they have started already.” Summarise this report in a few sentences.
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nine out of ten showrooms of two-wheeler manufacturers are now operational across the country. customer enquiries and even bookings have reached to pre-covid levels for some players. motherson sumi wants to triple revenues to $35 billion over the next five years. retail car volumes drop 87% in may. a decade after acquiring majority stake, m&m ready to cede control of beleaguered Korean SUV-manufacturing company SsangYong Motor Company (SYMC)
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File image The United Nations called on governments, companies and billionaires on Thursday to contribute to a USD 6.7 billion fund for immediate needs in fighting the coronavirus pandemic in vulnerable countries, warning that a failure to help could lead to a "hunger pandemic", famine, riots and more conflict. UN humanitarian chief Mark Lowcock said "COVID-19 has now affected every country and almost every person on the planet". He said the UN's initial USD 2 billion appeal unveiled on March 25 was being increased because there is already evidence of incomes plummeting and jobs disappearing, food supplies falling and prices soaring, and children missing vaccinations and meals. He added that the peak of the pandemic is not expected to hit the world's poorest countries for three to six months. Lowcock said in a video-briefing launching the new appeal that the poorest countries face "a double whammy" -- the health impact of COVID-19 and "the impact of the global recession and the domestic measures taken to contain the virus". "We must be prepared for a rise in conflict, hunger, poverty and disease as economies contract, export earnings, remittances and tourism disappear, and health systems are put under strain," he warned. "Lockdowns and economic recession may mean a hunger pandemic ahead for millions." COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show The executive director of the World Food Programme, David Beasley, said there are two keys to averting the possibility of 26.5 crore people being on the brink of famine by the end of the year: providing money and keeping supply chains running smoothly. The UN appeals to wealthy nations for funding all the time, he said, but the pandemic is "a one-time phenomena, a catastrophe we are hitting", so it is not unreasonable to ask the wealthiest people and the wealthiest companies to give. "I do not mean just a few millions. I am talking about hundreds of millions of dollars, billions," Beasley said. He also urged action to address the "breakdown of supply chains globally". Nations must ensure "that we do not have export-import bans, restrictions at borders, shutdown of ports, shutdown of distribution points", he said, saying that some countries have already imposed export bans that are having ripple effects on food supplies. As an example, Beasley said if young people in urban areas in Africa lose their jobs as a result of the economic impact of the pandemic, they do not have bank accounts to fall back on. "And if they do not have food, you are going to have protests, riots, unrest and destabilisation. It is going to cost the world a hundredfold more to react after the fact," he warned. He said that if the world does not respond with sufficient funding, it will be catastrophic. "We are facing famine of biblical proportions," he said. "We can avert famine if we act and we act now." The UN's initial USD 2 billion appeal has so far raised USD 1 billion, including a lot from Europe -- Germany, Britain, the European Commission -- with contributions also from Japan, Persian Gulf countries, Canada and others, Lowcock said. The updated appeal adds nine vulnerable countries to the 54 nations covered in the initial appeal -- Benin, Djibouti, Liberia, Mozambique, Pakistan, the Philippines, Sierra Leone, Togo and Zimbabwe. Lowcock said more countries are being monitored for possible addition to the list. The USD 6.7 billion will fund the UN's humanitarian response plan to help the world's most vulnerable people deal with the pandemic now and in the coming months. Lowcock said the amount will be updated before the end of June because the pandemic has created "a very fast-moving situation", and will likely be revised upward again to meet needs in 2020. Lowcock also urged international financial institutions and governments to help fragile countries deal with the pandemic and reiterated that USD 90 billion could provide income support, food and a health response to COVID-19 for 700 million of the world's most vulnerable people. That's just one per cent of the USD 8 trillion stimulus package that the world's 20 richest countries put in place to save the global economy, he said. Lowcock has said probably two-thirds of the USD 90 billion could come from international financial institutions like the World Bank and the International Monetary Fund and one-third from a one-time 20 per cent increase in government development assistance. "Wealthy countries will need to make significant one-off increases in their foreign aid commitments," he said on Thursday. "And international financial institutions will need to change lending agreements with vulnerable countries." UN refugee chief Filippo Grandi said in the briefing that there has not been a major outbreak of COVID-19 in refugee camps, but warned that they have an "extraordinary vulnerability" that needs prevention efforts. Dr Mike Ryan, who heads the World Health Organization's emergencies operation, said that people in such camps cannot maintain physical distance and they have "underlying vulnerabilities" with no access to personal hygiene, safe water, sanitation, food and welfare. "That is the tinder in which this epidemic may explode," he said. Summarise this report in a few sentences.
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the united nations has increased its appeal for aid to combat the coronavirus pandemic. the appeal is to raise USD 6.7 billion for immediate needs in fighting the disease. the pandemic is expected to hit the world's poorest countries in three to six months. lowcock: "we must be prepared for a rise in conflict, hunger, poverty and disease"
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An economic relief package to fight the Covid-19 crisis will come any time soon, chief economic advisor (CEA) Krishnamurthy V Subramanian said on Thursday and indicated that borrowing of around $60 billion to fund the rising fiscal deficit can theoretically be through listing government bonds on the global bond indices. In an interview to India Today channel, the CEA said: “About $4 trillion of money tracks these (global) bond indices. India is expected to get a weight of around 1.5-3%. Even if you take 1.5%, that translates into $60 billion.” “I recognise that this money can’t come immediately but may come later half of the year or next year. But that gives us the opportunity to structure the borrowing plan in terms of maturity etc to be able to finance the deficit and also do it in a way that the cost of borrowing doesn’t become very large,” he added. In March, the Reserve Bank of India announced the opening up of key government securities to full foreign investment in a bid to find a place in global bond indices. The Centre had budgeted gross market borrowing of Rs 7.8 lakh crore for FY21 and had recently announced its plan to borrow 62.6% of it in the first half itself. However, its plans have gone haywires due to the Covid-19 crisis. While acknowledging the serious challenges being faced by the businesses and even workers in the wake of the Covid crisis, the CEA refuted the notion of a large-scale distress, saying the Jan Dhan deposits have gone up from the level witnessed in the week before the lockdown was imposed from March 25. The economy could grow at 1.5-2% in FY21, with a contraction in the first half. This will be followed by a V-shaped recovery, he said, drawing a parallel with a similar rebound witnessed after the Spanish flu outbreak, which was, in fact, more devastating. Talking about the debt-to-GDP ratio following massive borrowing to fund productive spending, Subramanian said even if the country witnesses 4% real GDP growth for 5-10 years from FY22, the debt levels will come down. The important point is that the rate of borrowing will be far lower than our nominal GDP growth rates. The CEA said while the first package addressed the vulnerable sections (mainly a demand-side measure), the next round of relief could focus on the supply side of the economy, including the ways to boost credit flow or liquidity in the system. Already, the central bank has initiated a raft of steps to improve liquidity in the system. Commenting on the need to have a massive stimulus package, in sync with the ones offered by the developed countries, the CEA said if the loan guarantee is removed from the package extended by the UK, it would be worth only 3.7% of the GDP, and not 15%. Similarly, the US package will be worth 6.5% of its GDP, instead of 10%. Summarise this report in a few sentences.
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the central bank has announced plans to borrow 62.6% of its debt in the first half. the economy could grow at 1.5-2% in FY21, with a contraction in the first half. the next round of borrowing will be far lower than nominal GDP growth rates. the government is expected to get a weight of around 1.5-3%. the government is expected to get a weight of around 1.5-3%.
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NEW DELHI: Finance Minister Nirmala Sitharaman on Friday emphasised the need for further efforts by the G-20 countries to end the COVID-19 crisis, and highlighted affordability as well as the accessibility of vaccines for all as a crucial step in this direction.At a virtual meeting on Friday, the finance ministers of G-20 countries, which is a grouping of developing and developed nations, gathered to discuss their views on the global economic outlook and downside risks in the wake of COVID-19 crisis and how G20 could carry forward the collective global action initiated during the crisis."The Finance Minister emphasised the need for further efforts by the G20 members to end the crisis and highlighted affordability and accessibility of vaccines for all as a crucial step in this direction," an official statement issued here said.Sitharaman highlighted the G20 Action Plan as the mainstay of the G20's economic response and shared that it not only coordinates our immediate response but also guides our long-term recovery efforts.The G20 finance ministers and central bank governors in April published an Action Plan for the international response to the COVID-19 pandemic.The Action Plan covers healthcare, economic and fiscal responses that G20 members have agreed to undertake, as well as measures to ensure a return to a strong and sustainable global economy, the provision of support to countries in need and the learning of lessons in preparation for future crises.Highlighting the Debt Service Suspension Initiative as an important outcome under the G20 Saudi Arabian Presidency, Sitharaman emphasised on the need for collective and coordinated efforts by all G-20 members to achieve this deliverable. Summarise this report in a few sentences.
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finance ministers of the G-20 countries gathered to discuss economic outlook. she highlighted affordability and accessibility of vaccines for all. the action plan is the mainstay of the G20's economic response. a debt service suspension initiative is an important outcome under the saudi presidency. a saudi government spokesman said the saudi government is "deeply concerned"
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US coronavirus deaths topped 48,000 on Thursday as the number of lives lost in April rises by an average of 2,000 a day, according to a Reuters tally. At current rates, US deaths will reach 50,000 later this week. The total number of US cases was approaching 850,000 with most states yet to report on Thursday. US cases rose by over 30,000 on Wednesday, the biggest increase in five days but in line with an average of 30,000 new cases a day in April, according to a Reuters tally. Across the country, state officials say there remain bottlenecks in testing capacity, shortages of materials such as swabs used for taking samples and not enough workers to contact- trace infections. COVID-19 Vaccine Frequently Asked Questions View more How does a vaccine work? A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine. How many types of vaccines are there? There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine. What does it take to develop a vaccine of this kind? Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time. View more Show In addition to a staggering death toll, unemployment claims soared on Thursday and reaffirmed the grim economic toll of the coronavirus pandemic. Over 26.5 million Americans have sought unemployment benefits over the last five weeks, confirming that all the jobs gained during the longest employment boom in US history have been wiped out as the novel coronavirus savages the economy. A Reuters/Ipsos survey this month showed a bipartisan majority of Americans want to continue to shelter in place to protect themselves from the coronavirus, despite the impact to the economy. Follow our full coverage of the coronavirus pandemic here. Summarise this report in a few sentences.
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coronavirus deaths top 48,000 on Thursday as number of lives lost in April rises. at current rates, deaths will reach 50,000 later this week. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by mimicking a natural infection. a vaccine works by building herd immunity to put an end to the pandemic.
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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 Indian School of Business ISB Chief Digital Officer Visit IIM Lucknow IIML Chief Operations Officer Programme Visit Absence of new economy stocks a big hindrance for Asia markets outside of China, says Mark Matthews , Head of Research, Asia.I don't really know what to comment about that except that you should buy low and sell high. We always know the time to buy is when everybody is afraid and that is what March was. But to actually to go and do it takes tremendous courage and clearly a very few people have that courage because there is a great unknown. We could not have known back in March that fiscal and monetary response would have been as big as it was because our last experience with this kind of thing was the global financial crisis and it actually took the Federal Reserve between Bear Stearns and Lehman Brothers a good seven to eight months before they reacted. So if we had to wait seven months before a big intervention from the Federal Reserve and the government, for sure the market would have gone down a lot more. That is the thing you could not have really known back in March; except in retrospect, today we know it.The train was only on the station for one day. The amazing thing about the correction in March is that when you have that kind of a selloff, it takes between two to four months to build a base given that all the previous selloffs of that magnitude in history like 1987, 1974 and 1962. But what I want to say is that the market is going to go up. We think the S&P will take out new highs by the end of this month. The leadership will remain in the Nasdaq and there are a bunch of reasons.One, the second quarter results have started coming up and there are about 20 companies that have beat the consensus expectation. Now I admit that 20 is a small number but 80% of them have beat expectations. So if you extrapolate that, it becomes a trend then that the earnings will not be as bad in the second quarter as people had thought. The second thing I would say is on the technical side, the breadth is very strong in the market. In fact 80% or more companies in America are trading above their 200-day moving average. If you look back in history, when you have that kind of positive momentum spread across a vast majority of stocks, in all instances the market was up 12 months later.I think the actual virus itself is devastating now and there are 170 different organisations working on a vaccine. We think there will be a vaccine within six months. And then you have the recovery in economies; the most important one for global growth is China and specifically Taichen, which is their private service sector PMI which registered new orders in the month of June. It is 57.3, which is a very robust number. And given the service sector is 60% of their GDP, the private sector is 60% of their GDP as well and that shows you that China’s economy will be registering better numbers in the months ahead.The value is in the midcaps and the banks and energy companies but that is not what is going to go up. We can take our lead from the United States for the last 10 years; it is more like eight years. The leadership has been in the technology sector and the great tragedy of Asia outside of China is that we surrendered all of our technology and new economy technology to America. So we hail Ubers and we watch Netflix and we use WhatsApp to call our friends. The only thing you have got that is anywhere near that is Reliance Industries Jio platforms and that is what is going to do well because it is going to gradually become the Nasdaq of India. It would not probably be listed in India. I imagine Jio platforms will be listed in the US unfortunately but that is the closest thing India has to what everybody wants. And that I think is what will continue to go up and become a much larger constituent of Reliance and a much larger constituent of the Nifty.I am not an epidemiologist but I suspect the reason for that is simply because the place for the virus is worst in Delhi and Mumbai and that is because of population density and the inability of people to practice social distancing the way they can compared to the rural areas where there is more fresh air and probably people eat more nutritious food. Anyway, I think there is sustainability to that trend if you look at the jobless numbers. They have significantly improved. In other words, unemployment dropped a lot in June over May and the PMI rose. As much as the virus is still a terrible problem in the two big cities, I imagine that it will probably pass through the rest of the country therefore those kinds of ideas like tractors have momentum.The Chinese market is in a bull market and it has been officially sanctioned two days ago by the government’s CCTV evening news, which is their biggest evening news programme. I cannot remember exactly what they said but they said that the bull market proves that the Chinese government has done an excellent job in handling the virus and in providing adequate stimulus and to me that is official approval of the bull market. One of the major financial newspapers The Securities Daily published a piece on Monday saying that the bull market is good because it will help the economy and that journal is also an official organ of the government. So the government condoned and approved this bull market. I think it has some momentum behind it because their PMIs are rebounding very strongly in June after already good numbers seen in May.So yes, it can continue and the tragedy in my opinion is in Asia outside of China. There are no new economy stocks; just one or two in each market and some of them do not have any at all. But China has so many new economy stocks like Alibaba and JD and Tencent. But there are also dozens and dozens of others and they all have that same kind of interesting structural growth story that the likes of FAANGS do in the US and. Really outside of China and the US, you do not have that anywhere else in the world and that is what people want right now because that is growth.I think the biggest thing for the emerging markets is what the dollar is going to do. We went from being bullish on the dollar to being neutral on the dollar primarily because we were not expecting the response in Europe fiscal and monetary to be as strong. It will take them a month or two to implement actually; maybe more than that but it looks like they are getting their act together in the way that we had not foreseen. So we are neutral on the dollar, which is already a positive for emerging markets because a strong dollar will certainly be a hindrance to them and I think there are two primary reasons.The first is that the emerging economies have dollar debts. So when the dollar goes up, it costs them more to service that and two, investors do not want to buy an emerging market if they think they are going to lose money in the currency. But what we are watching very closely is the momentum in the dollar and it looks like it is waning. It looks like the dollar is starting to rollover and it is premature to say at this point but it might be and if it is, that would be the best thing for Asia. But just to reiterate, the thing that really is a problem for Asia outside of China is the absence of new economy stocks and really to get a sustained rebound in these so-called cyclical stocks like banks, energy; lots and lots of things really are the backbone of most markets in Asia. You need a strong economy and I think it is premature to expect a strong economy given the coronavirus is still holding a lot of things back. So I do not think the leadership is in Asia but could be in China.Gold for me is the safest of those bets. Bitcoin might do much better but it is a highly volatile thing and the S&P is great. I think it is a great store of value over the long term but I would choose gold right now just because the wind is really in its sails with these extremely low interest rates probably looking at yield curve control in much of the world. Certainly there is a lot of geopolitical instability which is favourable for gold and potentially weakness in the dollar too. So I do not think that it is going to double. But I think it could continue to give us about 6% or 7% per year in dollar terms and that is what it has returned. Let us call it over the last five years or so and that would be enough for me because it is a pretty safe investment too. Summarise this report in a few sentences.
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80% or more companies in the market are trading above their 200-day highs. a lot of the new economy stocks are a hindrance for the markets outside of china. the leadership will remain in the nasdaq. a lot of the new economy stocks are a'silver bullet' for the u.s.
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Mumbai: The battle for e-commerce dominance in India between Amazon.com Inc. and local rival Flipkart Online Services Pvt. Ltd has opened the door for one of the nation’s largest logistics companies to reinvent itself. Mumbai-based Allcargo Logistics Ltd., with a presence in more than 160 countries, plans to transform into a business-to-customer company with a focus on e-commerce from its traditional business of port-based logistics. The company is investing in new warehouses and will consider acquiring technology-driven logistics players, chairman Shashi Kiran Shetty said in an interview last month. Amazon and Flipkart have invested billions of dollars to widen their offerings and customer base at a time when increasing broadband and mobile penetration are bringing more of India’s 1.3 billion people online. E-commerce companies need seamless, last-mile connectivity to ensure the delivery of goods in cities as well as India’s remote hinterlands—a need that providers of third-party logistics services address. “With smartphones penetrating deeper into the country and e-commerce expected to grow from the current 60 million users to 200 million users over the next four to five years, there will be an opportunity," Shetty said. “All smartphone users are likely to use online services for their day-to-day as well as business requirements, so that is a growing space, which we don’t want to miss." Allcargo is building large hub-warehouses in four Indian cities and reworking its existing storage facilities near ports to provide services to e-commerce companies as part of the restructuring. “It’s the expansion of our shipping business to road in a domestic market," Shetty said. “We will also offer last-mile delivery for the likes of Amazon and Flipkart." The company’s shares have climbed 31% in the past year and traded at Rs224.15 as of 11:15am in Mumbai on Tuesday. Another trigger for Allcargo’s move has been the roll-out of a nationwide sales tax that promises to convert Asia’s third-largest economy into a single market. The government has also recognized logistics as an infrastructure sub-sector, which Shetty said may help reduce borrowing costs and encourage expansion. Click here for more on how India’s new sales tax is changing the logistics space Other traditional players such as DHL Group, Gati Ltd., Blue Dart Express Ltd. and TVS Group are also building warehouses to target e-commerce, competing with niche companies such as Delhivery Pvt. Ltd., Ecom Express Pvt and GoJavas. As a brick-and-mortar logistics company, Allcargo may struggle in the fast-paced technology-driven world of e-commerce logistics, given its organizational structure and culture, said Ramesh Singhal, chief executive officer at Mumbai-based I-maritime Consultancy Pvt. Ltd. It should have looked instead at starting a focused division or company, he said. Allcargo’s revenues have grown about 42% in the past four years to Rs5,580 crore ($879 million) in the 12 months ended March, according to data compiled by Bloomberg. Sales will probably cross $1 billion this financial year, Shetty said, adding that the company will consider acquiring technology starts-ups and digitization-driven logistic businesses as it targets revenues of $2 billion by 2020. “We know it is a bold business plan to achieve in a industry which is so diverse and fragmented," he said. “That kind of growth can only happen if there are a series of acquisitions." Bloomberg 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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allcargo plans to become a business-to-customer company with a focus on e-commerce. the company is investing in new warehouses and will consider acquiring technology-driven logistics players. the move is triggered by the roll-out of a nationwide sales tax that promises to convert Asia’s third-largest economy into a single market.
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As India resumes its domestic flight operations, a big question of Coronavirus transmission risk on flights lingers in front. How does one know if the risk of being infected with Coronavirus is limited while travelling through flights? The risk is expected to be low on airplanes except in some cases if any healthy passenger is sitting near to the infected one, the IE reported. Citing two studies which were done before Coronavirus pandemic (but talks about the rate of transmission of viral disease), the report has tried to highlight the infection risk. The World Health Organisation (WHO) has earlier stated that since Coronavirus is transmitted via droplets, anyone healthy who is sitting in close proximity with the infected individual is susceptible of getting infected. And some highly contagious conditions can spread quickly if the ventilation system is not working properly. It can be noted that ventilation in an aircraft can provide a change of total air 20-30 times in an hour. Airplane manufacturers including Boeing and Airbus have ensured safety in terms of ventilation systems, the report said. Citing the study done by researchers at Emory University and Georgia Tech in 2018, the report asserted that the calculated risk of viral transmission varies but mostly it is small. The sample studied by the researchers reveals that only 11 seats around the infected person were at high risk where the risk for other passengers beyond it was less than 3 per cent. WHO has asked to maintain a distance of 1 metre between two people in order to curb the Coronavirus transmission. However, the IE report mentioned in terms of Coronavirus, it is difficult to quantify these probabilities. Another study by researchers from three institutions in Florida has indicated that better boarding practises is essential for maintaining some distance between people and avoiding any kind of disease transmission. It was noted that business class possessed lesser risk than economy class on plane. Some other interesting findings of the study showed that some seats are at higher risk depending on the positioning and air flow. Therefore, people sitting in aisle seats are possible to face a higher risk than other seats. Meanwhile in India, people with Coronavirus-like symptoms or those in containment zones will not be allowed to board the flights. Only asymptomatic passengers after clearing the screening test will board the flight in a manner that ensures social distancing measures. Even the contact with other objects and the staff on the flight will be reduced as there will be no magazines, papers or food served within the flight. Summarise this report in a few sentences.
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a new report has tried to highlight the infection risk on flights. the risk is low on airplanes except in some cases if any healthy passenger is sitting near to the infected one. ventilation in an aircraft can provide a change of total air 20-30 times in an hour. business class possessed lesser risk than economy class on planes. in india, people with Coronavirus-like symptoms or those in containment zones will not be allowed to board the flights.
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ITEM 1A. RISK FACTORS As a smaller reporting company, we are not required to provide the information required by this Item. However, as a result of recent events that may be outside of our control, such as political and social unrest, terrorist attacks, hostilities, malicious human acts, climate change, natural disasters (including extreme weather), pandemics or other major public health concerns, including the ongoing outbreak of a respiratory illness caused by the 2019 novel coronavirus that was recently named by the World Health Organization as COVID-19, and other similar events, we have included the following additional Risk Factors: Adverse or uncertain macroeconomic or geopolitical conditions or reduced IT spending may adversely impact our business, revenues and profitability. Our business, operations and performance are dependent in part on worldwide economic conditions and events that may be outside of our control, such as political and social unrest, terrorist attacks, hostilities, malicious human acts, climate change, natural disasters (including extreme weather), pandemics or other major public health concerns and other similar events, and the impact these conditions and events have on the overall demand for enterprise computing infrastructure solutions and on the economic health and general willingness of our current and prospective end customers to purchase our solutions and to continue spending on IT in general. The global macroeconomic environment has been, and may continue to be, inconsistent, challenging and unpredictable due to international trade disputes, tariffs, including those recently imposed by the U.S. government on Chinese imports to the U.S., restrictions on sales and technology transfers, uncertainties related to changes in public policies such as domestic and international regulations, taxes, or international trade agreements, elections, geopolitical turmoil and civil unrests, instability in the global credit markets, uncertainties regarding the effects of the United Kingdom’s separation from the European Union, commonly known as “Brexit”, actual or potential government shutdowns, and other disruptions to global and regional economies and markets. Specifically, the recent and developing outbreak of a respiratory illness caused by the 2019 novel coronavirus that was named by the World Health Organization as COVID-19 (collectively with any future mutations or related strains thereof, “COVID-19”) has caused and may continue to cause travel bans or disruptions, supply chain delays and disruptions, and additional macroeconomic uncertainty. The impact of COVID-19 is fluid and uncertain, but it has caused and may continue to cause various negative effects, including an inability to meet with actual or potential customers, our end customers deciding to delay or abandon their planned purchases, us to delay, cancel, or withdraw from user and industry conferences and other marketing events, and delays or disruptions in our or our OEM partners’ supply chains, including delays or disruptions in procuring and shipping the hardware appliances on which our software solutions run. As a result, we may experience extended sales cycles, our ability to close transactions with new and existing customers and partners may be negatively impacted, potentially significantly, our ability to recognize revenue from software transactions we do close may be negatively impacted, potentially significantly, our demand generation activities, and the efficiency and effect of those activities, may be negatively affected, our ability to provide 24x7 worldwide support and/or replacement parts to our end customers may be effected, and it has been and, until the COVID-19 outbreak is contained, will continue to be more difficult for us to forecast our operating results. These macroeconomic challenges and uncertainties, including the COVID-19 outbreak, have, and may continue to, put pressure on global economic conditions and overall IT spending and may cause our end customers to modify spending priorities or delay or abandon purchasing decisions, thereby lengthening sales cycles and potentially lowering prices for our solutions, and may make it difficult for us to forecast our sales and operating results and to make decisions about future investments, any of which could materially harm our business, operating results and financial condition. ITEM 1B. Summarise this report in a few sentences.
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RISK FACTORS
This company is at risk of being adversely affected by macroeconomic or geopolitical conditions, reduced IT spending, and events outside of their control such as political and social unrest, terrorist attacks, hostilities, malicious human acts, climate change, natural disasters, pandemics, and the ongoing COVID-19 outbreak. These events could lead to extended sales cycles, difficulty in closing transactions, difficulty in forecasting operating results, and pressure on global economic conditions and overall IT spending. This could result in lower prices for their solutions and harm their business, operating results, and financial condition.
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China growth: Slowdown concerns in US and China, due to the trade war between the two countries, have caused global investors to worry. (Image: Getty Images) Profits earned by Chinese industrial firms in April rose at their fastest pace in six months, data from the National Bureau of Statistics (NBS) showed on Sunday, as factories benefited from higher prices and strong demand. Profits in April rose 21.9 percent year-on-year to 576 billion yuan ($90.14 billion), the quickest since October, bringing gains for the first four months of 2018 to 15 percent. The data suggests China's industrial sector is still seeing solid growth momentum despite curbs on pollution and rocky trade relations with the United States. Last month's rebound was helped by lower comparison figures for April 2017, higher factory prices and stronger demand, He Ping, head of NBS' industrial division, said in a statement. It was a significant improvement over March's 3.1 percent growth that was the slowest in over a year and which government officials had blamed on the timing of the Lunar New Year holiday. The higher April data should help ease concerns of slowing momentum in China's economy as the country implements tougher pollution controls on "smokestack" industries and cash-strapped regional governments cut back on big investment projects, curbing demand for building materials. Profit growth for Chinese industrial firms has softened from last year's strong pace as factory gate price gains weaken. In the first four months of 2017, profits rose 24.4 percent. China's producer price inflation picked up to 3.4 percent in April from March but was much lower than 6.4 percent in the year-ago period. Weaker profit growth suggests companies may be reluctant to invest and hire new staff, while making it harder for debt-laden firms to service their debt, especially state-owned enterprises that account for the bulk of the country's high leverage. A Reuters analysis showed that debt growth for Chinese companies has slowed to the lowest rate in more than a decade, but companies have also seen profit margins squeezed to their lowest level in two years. April economic data had shown signs of slowing momentum as investment growth touched a near 20-year low and retail sales growth weakened. Despite stronger-than-expected first-quarter economic growth, economists polled by Reuters still expect a gradual slowdown to around 6.5 percent this year from 6.9 percent in 2017, as rising borrowing costs weigh on consumption and investment. Beijing continues to call for tighter controls on risky investments and speculation in the property sector, but does not want to cut off funding to firms in the "real economy" such as manufacturing firms that are a key source of jobs. There have also been signs that policymakers have moved to a slightly looser stance as they look to ensure growth doesn't slow too much, while also keeping financial risks under control. STEEL SECTOR LEADS REBOUND April's rebound was led by the steel, chemicals and automobile industries, said He, as profits for iron and steel processing firms rose 260 percent in April. No industrial sectors recorded year-on-year losses over January to April, the data showed. But earnings in the computer and telecommunications sector fell 5.3 percent over the four months, though that was a slight improvement from an 11 percent decline in the first quarter. Liabilities of industrial firms rose 6.1 percent year-on-year as of end-April, according to the statistics bureau. Profits at China's state-owned firms rose 26.2 percent to 627 billion yuan for Jan-April, compared with a 23.1 percent rise in the first quarter. The data includes companies with annual revenues of more than 20 million yuan ($3.13 million) from their main operations. Summarise this report in a few sentences.
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profit growth for china's industrial firms has softened from last year's strong pace. in the first four months of 2017, profits rose 24.4 percent. china's producer price inflation picked up to 3.4 percent in April from march. economists still expect a slowdown in the economy. a chinese government has vowed to reopen its trade war with the united states.
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New Delhi: The Congress hopes that the government will come out with a plan to deal with the situation arising out of the prevailing lockdown , party president Sonia Gandhi said on Friday as she took stock of the party's relief work for people reeling under the fallout of the COVID-19 pandemic.At a meeting with all Congress state unit chiefs via video conferencing, Gandhi said the country is fighting the battle against the coronavirus and the party is ready to play its role in it. Congress office bearers, workers have been engaged in serving the countrymen in the difficult times."Due to the lockdown, the poor laborers left for their villages, and our workers got down to help them. Even today, all over the country, Congress workers from every district are engaged in this work," she said in her initial remarks.Gandhi said former Congress president Rahul Gandhi and herself had written to the government and made suggestions to the government over the battle against COVID-19."We hope that the government comes out with a plan to meet this challenge. The poor, farmers and labourers are suffering the most," the Congress chief said."The lockdown is going to put a lot of burden on our economy. The economy was already in crisis - and now it seems that difficulties will increase. We have to be ready for it," Gandhi told the party's state chiefs.She asked the state chiefs to brief her on the relief work carried out by the Congress workers in various parts and whether they were satisfied with government support and actions.She also asked them for suggestions on how the Congress can contribute more in the fight against COVID-19. Summarise this report in a few sentences.
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the party president said the country is fighting the battle against the coronavirus. she said the party is ready to play its role in it. the lockdown is going to put a lot of burden on our economy. the economy was already in crisis - and now it seems that difficulties will increase. 'we hope that the government comes out with a plan to meet this challenge,' she said.
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ET Intelligence Group: The March quarter earnings of India’s largest drugmaker Sun Pharmaceutical failed to provide concrete direction to investors at a time pharma is the flavour of the season. While the topline met Street estimates, profits didn’t match up to expectations.The management has broken with the tradition of providing guidance for the fiscal year due to the current uncertainties.One-offs, provisioning for litigation settlement and forex loss mean the Q4 results do not remain strictly comparable with the same quarter last year. Consolidated revenue climbed 15 per cent for the quarter. Net profit dropped 37 per cent and Ebitda margins stood at 15.5 per cent. The Street was working with a 40 per cent likely increase in net profit and Ebitda margin of 21 per cent.While the company estimates some softening of sales in the near term due to the lockdown and stocking up by customers, it isn’t in a position to quantify the impact. The management’s focus is to ensure business continuity and maintain supplies despite the lockdown challenges across its markets. Sun Pharma is working on digital engagement with doctors, ensuring optimum utilisation of factories, working with vendors to continue supplies uninterrupted, enabling work from home for employees, focusing on cash collection and cash preservation, controlling costs, improving efficiencies across businesses and finding ways to reduce overall debt.The India business revenues, adjusted for one-off impact in the base quarter, increased by 8 per cent. India business constituted nearly one-third of the overall revenues. Amid Covid, Sun has managed to improve its market share for the Q4 to 8.4 per cent of the total market, helped by strong brand equity in the chronic segment. Its acute therapy portfolio has suffered. In the past two months, the company has reached out to doctors digitally but now its field force has started visiting clinics.Its specialty business in the US did see traction, with flagship brand Ilumya garnering annual sales of $94 million in its first full year of commercialisation. The specialty business revenues in the US have grown over the December quarter, despite the seasonal decline that was expected in certain drugs.While the company is incurring high expenses on the specialty business, the management believes that the business will be able to absorb these costs as it ramps up. Specialty R&D accounted for a quarter of the research and development spend of 536 crore for the quarter.Sun’s generic pipeline stands at 98 ANDAs awaiting approval in the US. However, the pricing pressure on the US generics continues unabated. Its subsidiary Taro has been underperforming in the recent quarters.The key growth drivers for the company for FY20 include India, global specialty business, growth in rest of the world and active pharmaceutical ingredient business. For investors, the company is in a ‘work in progress’ mode. The Sun Pharma stock has been an underperformer in the pharma sector and is likely to remain so for now. Summarise this report in a few sentences.
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india's largest drugmaker failed to provide concrete direction to investors. topline met Street estimates but profits didn't match expectations. consolidated revenue climbed 15 per cent for the quarter. net profit dropped 37 per cent and Ebitda margins stood at 15.5%. the company estimates some softening of sales in the near term due to the lockdown and stocking up by customers.
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Brazil's Parana state is in talks with Russia to produce a COVID-19 vaccine, the state research institute said on Tuesday, hours after President Vladimir Putin declared his country to be the world's first to grant regulatory approval for a vaccine.Joao Pedro Schonarth, spokesman for the Parana Technology Institute (Tecpar), told Reuters talks were underway. The state government said Governor Ratinho Junior was set to meet the Russian ambassador to Brazil on Wednesday, but a spokesperson did not say if a production deal would be signed at the meeting.With the world's biggest coronavirus outbreak outside the United States, Brazil has become a hub for mass clinical trials of potential vaccines, with candidates from the UK and China already being tested.Brazilian officials have also vowed to start making vaccines developed by British and Chinese researchers within a year, but experts have warned it will likely take at least twice as long.The Russian vaccine has not yet completed final trials, raising concerns among experts at the speed of its approval, but the Russian business conglomerate Sistema has said it expects to put it into mass production by the end of the year.Moscow hailed its breakthrough, after less than two months of human testing, as evidence of Russia's scientific prowess.Kirill Dmitriev, head of Russia's sovereign wealth fund, said the vaccine, which will be marketed under the name Sputnik V in foreign markets, will be produced in part in Brazil.Any production arrangement would require approval by Brazilian health regulator Anvisa. The agency and Brazil's Health Ministry did not immediately respond to requests for comment.Brazil has registered more than 3 million cases of the novel coronavirus and the official death toll recently passed 100,000, as President Jair Bolsonaro urges a reopening of the economy despite an uncontrolled outbreak.Cuban news agency Prensa Latina reported that Russia "could" also arrange for production of its COVID-19 vaccine in Cuba, citing Dmitriev. Summarise this report in a few sentences.
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the state research institute says talks are underway. the vaccine will be marketed under the name Sputnik V in foreign markets. the vaccine will be produced in part in brazil. the vaccine has not yet completed final trials. a russian official says the vaccine will be marketed under the name Sputnik V. a russian official says the vaccine will be produced in part in brazil.
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MORE STORIES FOR YOU ✕ « 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 A total of 660 initial public offerings raised a cumulative USD 94.3 billion globally during January-June 2018 and the IPO activity looks rosy in the second half as well, says a report. According to an EY report, at USD 94.3 billion the IPO proceeds for the first half of 2018 were the highest since January-June 2015 when 704 IPOs had raised USD 110.1 billion.However, in volume terms, global IPO figures witnessed 21 per cent decline as compared to the year-ago period."The good news is that economic conditions remain encouraging, equity valuations remain high in many parts of the world and interest rates remain low. As a result, we expect a resurgence in IPO activity during the second half of 2018," said Martin Steinbach, EY Global and EMEIA IPO Leader.Region-wise, the Americas regained the lead in terms of proceeds as there were 122 IPOs on Americas' exchanges , which raised USD 35.3 billion during the reported period.In the Asia-Pacific region, riding on a strong second quarter 2018, Japan IPO volumes declined only 5 per cent and proceeds increased 8 per cent over first half of 2017.In Greater China, despite a decline in IPO activity, China's Shanghai (SSE) exchange hosted one of this year's largest IPOs globally and was also the second among exchanges by proceeds.Sector-wise, technology and financial services will continue to drive IPO listings throughout the second half of 2018. Healthcare listings will remain among the top five sectors, led by a flurry of biotech companies looking to hit markets in various regions, the report said."Given the current uncertainties in the IPO market , issuers are always wise to consider a multi-track approach, where organisations prepare for their IPO so that they are ready to go when the window opens, but remain open to alternate funding options and be flexible in terms of timing and pricing," it added. Summarise this report in a few sentences.
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660 IPOs raised USD 94.3 billion during the first half of 2018. volume figures for the second half of 2018 were the highest since 2015. the u.s. regained the lead in terms of proceeds as there were 122 IPOs on american exchanges. technology and financial services will continue to drive IPO listings. a flurry of biotech companies will continue to hit markets in various regions.
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The world’s biggest pension fund posted a record loss in the first three months of 2020 after the coronavirus pandemic sparked a global market rout in the period. Japan’s Government Pension Investment Fund lost 11%, or 17.7 trillion yen ($164.7 billion; approx: Rs 1232210.93 crore), in the three months ended March, it said in Tokyo on Friday. The decline in value was the steepest based on comparable data back to April 2008, reducing the fund’s total assets to 150.63 trillion yen. Foreign stocks were the worst performing investment, followed by domestic equities. The results come just months after the fund revamped top management and revised its asset allocation to focus more on overseas debt. The loss, which wiped out gains for the fiscal year, may attract political attention as social security remains a major concern for tens of millions of Japan’s retirees. “The decline in domestic and foreign equities led to a negative return for the fiscal year,” said Masataka Miyazono, the president of GPIF. “Both equity markets performed strongly during 2019 even under pressures from the U.S.-China trade negotiations. The global coronavirus pandemic led to investors taking a risk-off stance.” Overseas bonds were the only major asset to generate a positive quarterly return. The securities gained 0.5%, compared with losses of 0.5% for domestic bonds, 18% for local equities and 22% for foreign stocks. In April, GPIF raised its asset allocation to foreign bonds by 10 percentage points to 25%, while keeping the target for foreign and domestic stocks unchanged at 25%. Naoki Fujiwara, the chief fund manager at Shinkin Asset Management Co., said the losses were expected. Equities have rebounded since March, so the pension fund should be recouping losses for the April-June period, Fujiwara said. “The current portfolio is exposed to equity volatility,” he said. “We’re in a low-yield environment right now, and will likely be for the next two years, so maybe it’s alright for now, but in the long run, the pension fund should correct the allocation of equities.” Under the new guidance of GPIF President Miyazono and Chief Investment Officer Eiji Ueda, the fund must navigate a volatile market torn between an ongoing coronavirus pandemic and promises of economic stimulus measures. Fears of a second wave of outbreak are already hampering the global equity markets recovery. The GPIF isn’t rushing to buy foreign bonds, which are 3% below its allocation target, Miyazono told reporters in Tokyo. The fund has a long-term investment timeframe much longer than 10-20 years, he said, adding that there will be no impact on pension payouts from a single year’s results. Investments in ESG indices reached a record high of 5.7 trillion yen. The GPIF, a leader in socially responsible investing, has invested in indexes such as the FTSE Blossom Japan, MSCI Japan ESG Select Leaders and MSCI Japan Empowering Women. During the January-March quarter, the MSCI All-Country World Index of global stocks slumped 22%, the worst since the global financial crisis. Yields on the 10-year U.S. Treasuries slumped 125 basis points to near record lows during the same period, fueled by unprecedented measures from the U.S. Federal Reserve and intense demand for haven assets. From April, the GPIF has adjusted its portfolio, setting a general target to keep 25% each in all four asset classes, with the allocation of each assets allowed to deviate by different ranges. Summarise this report in a few sentences.
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the world's biggest pension fund posted a record loss in the first three months of 2020. the coronavirus pandemic sparked a global market rout in the period. foreign stocks were the worst performing investment, followed by domestic equities. the loss may attract political attention as social security remains a major concern. GPIF raised its asset allocation to foreign bonds by 10 percentage points to 25%.
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live bse live nse live Volume Todays L/H More × Finally! It was a Terrific Tuesday as Nifty finally broke out of the narrow range of 11,550-11,700 to register fresh record highs above 11,800 for the first time. The index surpassed its previous record high of 11,760 recorded on April 3 to hit a life high of 11,810.95. The S&P BSE Sensex also hit a record high of 39,364.34. The final tally – the S&P BSE Sensex rose 369 points to 39,275 and the Nifty50 closed 96 points higher at 11,787.15. Banks, consumer durables, and telecom stocks led the rally while realty stocks witnessed some profit taking. The broader market underperformed benchmark indices. The S&P BSE Midcap index rose 0.12 percent while the S&P BSE Smallcap index rose 0.37 percent. Apart from stable global cues, a better monsoon outlook from IMD provided relief to investors. The Street is also building hopes of further rate cuts to reverse the economic slowdown. Investors should stay put and avoid profit booking at higher levels because chances of a further rise in markets look likely, suggest experts. “Nifty has rallied after consolidating to break past its previous high of 11,760. We are advising our clients to avoid profit/loss booking at this point in time. They should hold onto their investments,” Shrikant Chouhan, Senior VP (Technical Research) at Kotak Securities told Moneycontrol. “We have three stocks on our radar in the midcap space. We like Godfrey Phillips India which is trading around Rs 1,190. It can be bought for a target of Rs 1,500-1,600. The second stock we like is Bombay Burmah Trading that could see a further rally of over 300 points. The next possible target would be around Rs 1,600,” he said. The last stock that Shrikant likes is from the banking space - DCB Bank. The stock is doing well on the charts as it broke from a consolidation pattern. It is trading near its all-time high levels of Rs 213-215. He expects the stock to touch a target of Rs 240-250. Stocks in news: Shares of Polycab India, a wires and cables manufacturer, listed at a premium of nearly 18 percent to its issue price of Rs 538. The stock closed 20 percent higher at Rs 653.20. Shares of Wipro declined more than 2 percent ahead of its Q4 earnings. Wipro reported a net profit of Rs. 2,483.5 crore for the quarter ended March 31. That marked a 1.07 percent fall from its net profit of Rs. 2,510.4 crore registered for the previous quarter. ICICI Bank jumped 3 percent after global research firm Goldman Sachs reiterated 'buy' call on the stock and raised the target to Rs 492. Shares of Deepak Fertilisers rose 13 percent after company commenced commercial production of Nitric Acid Plant at Dahej, Gujarat. Jet Airways fell 7 percent on speculations about temporarily shutting down its operations. Global update: European markets are trading marginally higher amid US corporate earnings. Asian markets ended higher as Shanghai Composite added 2.39 percent at 3,253.60 and Nikkei jumped 0.24 percent to 22,221.6. Hang Seng rose 1 percent at 30,129.87, while Kospi was up 0.26 percent at 2,248.63. Summarise this report in a few sentences.
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the index surpassed its previous record high of 11,760 recorded on April 3 to hit a life high of 11,810.95. the final tally – the S&P BSE Sensex rose 369 points to 39,275 and the Nifty50 closed 96 points higher at 11,787.15. banks, consumer durables, and telecom stocks led the rally while realty stocks witnessed some profit taking.
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It has been hectic over the last couple of weeks in New Delhi after the 2018 budget was presented following up on the Economic Survey. While the former didn’t seem to pay too much attention to it, it was heartening to see a novel dimension in economic surveys with a discussion on the abysmal rates of R&D (research and development) spending as a percentage of gross domestic product that the economy has seen over the past decade or more. The survey additionally pointed to how a single organization like Samsung spends on R&D close to what India is spending on it as an economy. During the televised budget discussions, some policy analysts pointed out that India seems to be targeting inflation to appease its middle classes at the cost of neglecting the dire issues facing agricultural productivity and farmers. This is not new, but what is mystifying is that despite a realization of the distortionary effects of this cross-subsidization in Delhi policy circles for some time now, efforts to use innovation and R&D to spur agricultural productivity have been few and far between. Why might that be so? The broad answer potentially lies in what Harvard economist Josh Lerner calls as policymakers’ inattention to the neglected art of setting the table in his now famous book, Boulevard of Broken Dreams. Lerner essentially points out that to credibly spur entrepreneurship, governments need to first carefully set up the table before the full course menu is served for entrepreneurs to take advantage of innovation, creating new jobs and to spur the economy. Might it then be time for India to pay attention to this neglected art carefully one more time? Even if the loud and clear response is yes, how to accomplish this remains still anybody’s guess. More so now, since globally innovation, having long been a growth catalyser across nations, now faces a pushback from inequality proponents. For an economy like India, living in an open world far more than where it was a decade or two back, timing will play a key role going forward in this matter. In the last three years of the current government, several structural reforms have been ushered in, whether through effective or less-than- effective policies. The goods and services tax, demonetization or financial technology disruptions may have created some short-run distortions but it is undeniable that the structural underpinning of the economy is well on the way towards change. But as general purpose technologies (to build on Stanford economist Tim Bresnahan’s terminology for it, à la the wheel, fire, railroads, internet, or today, industrial automation and artificial intelligence) takes shape in the Indian economy, it may also be time for the government to reset some of the lower-hanging complementary issues in order to correct the innovation menu on the economy’s table. That is probably the only way forward for Indian entrepreneurship and innovation to generate non-spurious valuations by solving not just India’s unmet needs but also global requirements. It is precisely here that more is now expected from Indian intellectual property laws and in how it harmonizes itself with its industrial and competition policies. Having shown some promise through initiatives like Make in India, Startup India, Digital India and Skill India, Indian policymakers still continue to betray and echo what Cambridge economist Joan Robinson once opined about the country: “The frustrating thing about India, is that whatever you can rightly say about India, the opposite is also true." Nowhere is it more apparent but in the country’s current healthcare policies, especially when one examines price-cap regulation for medical devices and pharmaceutical products for example, already adversely impacting diffusion of innovation, not helping India’s healthcare outcomes. Sure, in the short run, such actions may incentivize affordability of products and services on the demand side, but in the long run these policies may undo all the good work being done by structural reforms undertaken by the current government to incentivize Make in India with globally innovative products and services. Healthcare or the agricultural sector then may not be the only ones to suffer. Be that in indigenously generating clean energy, or producing climate-friendly electric vehicles or even creating domestic upstream capabilities in smartphone manufacturing, harmonized government action is now more important than ever before to incentivize long-term innovation to create multiplier effects over and above the good and painful work done in the past few years. Admittedly, this will create a few more short-run welfare consequences for the domestic economy, some entrepreneurs will perish and only a few will survive, some consumers will be provided access to a better life and some others will be left out, some political parties will win electoral mandates and others will fall by the wayside, but the cost of disharmony in its innovation, competition and industrial policy may mean that India will continue to remain an also-ran in the global innovation pecking order even 100 years after its independence. For a country that boasts an Indian Space Research Organisation, several scientific Nobel Laureates or even traditional knowledge that can be harnessed to create new global normals for various sectors, that will be a shame which future generations may not be able to forgive us (the current generation) for. One hopes Indian policymakers will pay attention to these intergenerational responsibilities and soon with alacrity recalibrate India’s position. At least, the 2018 Economic Survey, and chief economic adviser Arvind Subramanian and his team were paying attention with a recommendation for a targeted mission-driven sectoral approach, so one’s hope springs eternal. Rajendra Srivastava is dean and Novartis Professor of Marketing Strategy and Innovation at the Indian School of Business and Chirantan Chatterjee is assistant professor (economics and public policy) at ISB. 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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efforts to use innovation and R&D to spur agricultural productivity have been few and far between. despite a realization of distortionary effects of cross-subsidization in Delhi policy circles for some time now, efforts to use innovation and R&D to spur agricultural productivity have been few and far between. despite a realization of the distortionary effects of this cross-subsidization in Delhi policy circles for some time now, efforts to use innovation and R&D to spur agricultural productivity have been few and far between
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live bse live nse live Volume Todays L/H More × Sumit Bilgaiyan Finally, some profit booking was seen at higher levels and benchmark indices closed off from their respective highs on March 22. Nifty rallied 987 points from February 19 largely led by strong inflows from FIIs, who have poured more than Rs 26,000 crore in March and more than Rs 40,000 crore since February. During March 2017, FIIs had poured Rs 26,473.17 crore, which was highest ever monthly investment by FIIs in India. This time FIIs have already invested Rs 26,232.6 crore during March as of now and it can become best ever month in history for FIIs investment. We strongly believe that bullish momentum will continue in the market till May 23, so use every dip for buying. For the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650. Here are the top stock trading ideas that can give good returns in mid to long term: Maharashtra Seamless: Maharashtra Seamless is a DP Jindal group company and largest producer of seamless pipes in India with a capacity of 550 KPTA. It is also one of the major producers of ERW pipes in India with a capacity of 220 KPTA. It also has 43 MW solar and wind energy portfolio. The company has reported strong results for Q3FY19. Its sales grew 40 percent to Rs 785.88 crore and EBITDA grew 158 percent Rs 157 crore, while it’s PAT zoomed 139 percent Rs 92.77 crore. During 9MFY19, its PAT grew 156 percent to Rs 281.61 crore on 37 percent higher sales of Rs 2,096.14 crore. It has an order book of Rs 1,300 crore. L&T Mutual Fund holds 5.1 percent and IDFC Mutual Fund holds 1.4 percent stake in this company. Currently, the stock trades at a P/E of 9x. The stock has given a superb breakout on the weekly chart. We recommend buying in a staggered manner for medium to long term. Voltamp Transformers Voltamp Transformers has installed facility to manufacture Oil filled Power and Distribution Transformers up to 160MVA, 220kV Class, Resin Impregnated Dry type Transformers up to 5 MVA, 11KV Class (in technical collaboration with Mora, Germany) and Cast Resin Dry type Transformers up to 12.5 MVA, 33 KV Class (in technical collaboration with HTT, Germany). The company’s production facilities are located at Makarpura and Savli in Vadodara, Gujarat with an aggregate installed capacity of 13,000 MVA per annum. The company has posted stable numbers for 9MFY19. During 9MFY19, its net profit stood to Rs 52.67 crore from Rs 53.38 crore YoY on 32 percent higher sales of Rs 570.04 crore. EBITDA grew 11 percent to Rs 82.08 crore during 9MFY19. Currently, the stock trades at a P/E of 15.9x. With an equity base of just Rs 10.12 crore, the company has a huge reserve of around Rs.622 crore. Mutual Funds hold 18.74 percent and FIIs hold 15.57 percent stake in this company. Promoters have also increased their stake, which is a positive sign. It is regularly dividend paying company and it has paid a healthy 150 percent dividend for FY18. We recommend buying in a staggered manner for medium to long term. Bharat Electronics Bharat Electronics Limited designs, manufactures, supplies, and exports electronic equipment and systems for the defence and civilian markets. It has reported excellent results for Q3FY19. Sales grew 8.32 percent YoY to Rs 2656.38 crore while EBITDA grew 59 percent to Rs 785.74 crore and PAT increased 68 percent to Rs 507.63 crore as against Rs 302.84 crore. It’s PAT increased 50 percent to Rs 1,258.67 crore in 9MFY19. It has an order book or above Rs 50,000 crore, which is above five times its FY18 revenues and provides strong revenue visibility. At CMP, the stock is trading at P/E of just 12x. Being a Navratna Company, it is paying a huge dividend to shareholders. It has paid 200 percent dividend for FY18 and paid 100 percent interim dividend for FY19. Technically also stock is ready for a upmove. We recommend buying in a staggered manner for medium to long term. The author is Founder of Equity99 Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Summarise this report in a few sentences.
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Nifty rallied 987 points from February 19 largely led by strong inflows from FIIs. FIIs have poured more than Rs 26,000 crore in march and more than Rs 40,000 crore since February. for the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650. for the week, Nifty has strong support at 11,370-11,310 and resistance at 11,550-11,650.
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Former chief economic adviser Arvind Subramanian on Wednesday said the FRBM Act will probably have to be revised by the end of the year as India will witness a sharp decline in GDP growth due to the COVID-19 crisis. Addressing a webinar organised by EY India, Subramanian further said while labour reforms were necessary, the way they have been done by some states have undermined basic protections to workers, especially in light of the migrant crisis. “It is going to be a very, very difficult economic year. We should brace ourselves for a sharp decline in GDP growth. “India’s fiscal situation is going to be very very difficult. India’s debt to GDP will rise to 85 per cent once dust settles,” he said. Subramanian, currently a visiting professor at Harvard University, further said reviving the financial sector is going to be critical for stimulating economic growth. Talking about India’s current macroeconomic situation amid the COVID-19 pandemic, he said the Fiscal Responsibility and Budget Management (FRBM) Act and terms of reference of the 15th Finance Commission will probably have to be revised and updated. “Compare to the Budget 2020-21, I think facts have changed. We will probably have to revise, and update Budget numbers, the FRBM framework and the terms of reference of the 15th Finance Commission at the end of the year,” Subramanian emphasised. The FRBM Act of 2003 seeks to reduce the country’s fiscal deficit through financial discipline. He also pointed out that due to the Rs 20 lakh crore economic package announced by the government to mitigate the impact of the COVID-19 pandemic, India’s debt-to-GDP will rise to 85 per cent. The eminent economist also noted that the pandemic in India is not under control. “Developing countries are much more vulnerable and have less fiscal space than advanced economies. Lockdown has been much more severe on developing countries,” he said. Noting that India entered into lockdown when its economy was already slowing, Subramanian said, “It will take a lot of hard work for India to again start growing at 6 per cent.” The former CEA also said the pandemic and the lockdown have made the case for Universal Basic Income (UBI) stronger. Summarise this report in a few sentences.
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former chief economic adviser said FRBM Act will probably have to be revised. he said labour reforms were necessary but some states have undermined basic protections to workers. he said reviving the financial sector is going to be critical for stimulating economic growth. he also noted that the pandemic in India is not under control. he said the pandemic has made the case for universal basic income stronger.
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The September quarter earnings were better than expected as earnings upgrades exceeded the downgrades. As many as 32 Nifty stocks saw an earnings beat (actual results exceeded estimates by >5%) while only seven saw an earnings miss. The beat ratio (net earnings surprise divided by a total number of stocks) improved to 50% QoQ due to an earnings beat in financials, energy, and healthcare, Elara Capital said in a report. Margin also expanded on the back of lower raw material cost, and overhead expenses. The domestic brokerage firm raised the Nifty 50 EPS to INR 470, up 6%, for FY21E and to INR 640 for FY22E, down 2%, from Q1FY21. “Currently, we expect flat EPS growth in FY21E and 36% EPS growth in FY22E, hinging on EPS expansion in consumer discretionary, financials and energy sectors,” it said. Tracking the recovery in the economy, the domestic brokerage firm raised the Nifty 50 EPS to Rs 470, up 6%, for FY21E, and for FY22E to Rs 640, down 2%, from the last quarter, as things stabilize and the economy begins to recover. FY22E net earnings ratio for BSE100 fell to 28 percent QoQ from 89% in the past quarter, led by net upgrade in financials, consumer discretionary and materials. Among stocks, which saw consistent upward FY22 earnings revision (three out of the past four quarters) were Dr. Reddy’s, Aurobindo Pharma, Cipla, Tata Motors, and TATA Steel, Elara Capital highlighted in the report. Most of the companies have delivered powerful results, and if someone is holding them in the portfolio, then they should hold on to them. For fresh investment, investors can wait for a dip for long term investment, suggest experts. “These companies can be considered as long-term buys as their fundamental aspects look strong. Consistent growth in EPS over the past few quarters is one of the major reasons that these stocks have been able to attract investors over time,” Gaurav Garg, Head of Research, CapitalVia Global Research Limited told Moneycontrol. “Also, the prospects of most of the firms look promising. Therefore, most of the stocks can be considered for long term holding. However, investors should perform a detailed analysis of each stock in order to make an informed decision,” he said. What should investors do? Corporate earnings in Q2FY21 came in better-than-estimates supported by low raw material cost and realised operating leverage benefits along with strong management commentary for the forthcoming quarters amid the COVID-19 outbreak. ICICIDirect expects the Nifty earnings to grow at 17.5% CAGR in FY20-23E. From the low base of FY21E, Nifty earnings CAGR is at 22.7% in FY21E-23E. We now value the Nifty at 13,350 i.e. 20x P/E on FY22E-23E average EPS of 668. With earnings on the rise, markets are unlikely to disappoint, suggest experts. Earnings is definitely one parameter which one should track, apart from that, investors should also at the balance sheet, financial ratios, product life cycle etc. Apart from the bottom line, one should track a company’s performance is to look at its financial ratios, most of which are freely available on the internet, it is a good method to run a fast check on a company’s health before buying or selling the stock, added Jitendra Upadhyay- Senior Equity Research Analyst told Moneycontrol. “The companies listed above can be considered as long-term buys as their fundamental aspects look strong. Consistent growth in EPS over the past few quarters is one of the major reasons that these stocks have been able to attract investors over time,” he said. Upadhyay, the prospects of most of the firms look promising. Therefore, most of the stocks can be considered for long term holding. However, investors should perform a detailed analysis of each stock in order to make an informed decision. Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. Summarise this report in a few sentences.
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as many as 32 Nifty stocks saw an earnings beat while only seven saw an earnings miss. the beat ratio improved to 50% QoQ due to an earnings beat in financials, energy, and healthcare. domestic brokerage firm raised the Nifty 50 EPS to INR 470, up 6%, for FY21E. if someone is holding these stocks in the portfolio, then they should hold on to them.
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After a three-day trading holiday, headline indices Sensex and Nifty started the week with a uptick of nearly 5 per cent on Tuesday mirroring the gains in the global markets. S&P BSE Sensex was trading 1,325 points or 4.80 per cent to 28,961, while the broader Nifty 50 index was ruling at 8,446, up 363 points or 4.5 per cent higher. “Traders should continue with the “sell on rise” approach and prefer trading through options strategies. At the same time, investors should keep their shopping list handy and utilise further correction to accumulate fundamentally sound counters in a staggered manner. We believe the market trend will continue to remain challenging until the fresh cases start to decline,” Ajit Mishra, VP – Research, Religare Broking Ltd, said. IndusInd Bank gains 18%: As many as 29 stocks out of 30 Sensex stocks were trading green today, with IndusInd Bank as the top gainer, up 18 per cent to Rs 370, followed by M&M, Axis Bank and Sun Pharma. While Bajaj Finance was the only loser on the pack, down 2.64 per cent. All sectoral indices trade higher: All the Nifty sectoral indices were trading higher today with Nifty Private Bank index leading the gains, up 6.68 per cent driven by IndusInd Bank, Axis Bank and ICICI Bank. Similarly, Nifty IT index was up 5.26 per cent with HCL Tech, Infosys and TCS as the top index gainers. Global markets: Asian stocks climbed tracking gains on Wall Street on signs of a slowdown in coronavirus-related deaths. Nikkei futures opened lower but were 2.3% above the cash close. The yen eased 0.01% as traders awaited more details on the government’s stimulus package. US stocks rocketed higher on Monday, with each of the major indexes rallying at least 7%, after a fall in the daily death toll in New York, fueled optimism a leveling off of the pandemic was on the horizon, Reuters reported. The Dow Jones Industrial Average rose 1,627.46 points, or 7.73%, to 22,679.99, the S&P 500 gained 175.03 points, or 7.03%, to 2,663.68 and the Nasdaq Composite added 540.16 points, or 7.33%, to 7,913.24. Gold prices touch record high- Gold June futures were up 3.19 per cent or Rs 1,393 to Rs 45,115 per 10 grams at around 9.40 am. It scaled an all-time high of Rs 45,724 at the open. Silver May futures were up 5.21 per cent or Rs 2,146 to Rs 43,369 per kg on MCX. Summarise this report in a few sentences.
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Sensex and nifty started the week with a 5% uptick. broader Nifty 50 index ruling at 8,446, up 363 points or 4.5 per cent. 'traders should continue with the "sell on rise" approach,' says analyst. 'we believe the market trend will continue to remain challenging until the fresh cases start to decline'
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