Home Blog

Indian macroeconomic situation bleak, set to worsen if lockdowns continue: Jean Dreze

2
SBI have pegged the growth forecast for January-March at 2.5 percent and for 2020-21 at 2.6 percent given the effect of COVID-19-driven lockdowns,
SBI , Growth forecast for January-March at 2.5 percent and for 2020-21 at 2.6 percent, COVID-19-driven lockdowns,

New Delhi, Apr 5 (PTI) The Indian macroeconomic situation is bleak and all set to get worse if local or national lockdowns continue for some more time, renowned economist Jean Dreze said on Sunday.

Dreze further said that due to the country-wide lockdown, social unrest in many parts of India has already started.

The country is under a 21-day lockdown as part of larger efforts to curb spreading of coronavirus infections.

“The situation is bleak and all set to get worse, if local or national lockdowns of varying intensity continue for some time, as is likely to happen.

“Even otherwise, the world-wide recession is likely to have adverse affects on the Indian economy,” the Belgian-born Indian economist told PTI in an interview.

Talking about the impact of the coronavirus outbreak on the Indian economy and job creation, Dreze noted that some sectors are badly affected, but segments like medical care may even grow during the crisis.

“Most sectors would be unable to thrive if others are not in good shape.

“… It’s like, if a bicycle has a puncture, you cannot expect it to move forward on one wheel. In short, if the crisis lasts, it will spread to most parts of the economy, including the banking system,” he emphasised.

Observing that as soon as the lockdown is relaxed, migrant workers who are marooned in different parts will try to return home, Dreze pointed out that they will probably hesitate to migrate again for a while.

“But there is hardly any work for them at home, except for some farming if they have land,” he said, adding that because of reduced migration, sectors that rely heavily on migrant labour may face a shortage of manpower.

Pointing out that already there are reports of shortage of labour for wheat harvest in parts of north India, Dreze said, “This is the paradox of this situation, that shortages and surpluses may coexist, because the circulation channels have been severely disrupted.”

Asked whether it is the right time to go for Universal Basic Income (UBI), he said this is not the time to reinvent the wheel.

“That is why it is best to build on existing schemes for now, including the public distribution system and social security pensions.

“… In other contexts, UBI may be feasible and appropriate, but in India today, it is a distraction,” Dreze, a former member of the previous UPA government’s National Advisory Council argued.

Several international credit rating agencies have cut growth estimates for India in recent days on concerns about the fallout of the Covid-19 outbreak.

According to Fitch Ratings, India may post in 2020-21 a GDP growth of 2 per cent, the slowest since the economy was liberalised 30 years back. Asian Development Bank (ADB) sees India’s economic growth slipping to 4 per cent in the current fiscal (April 2020 to March 2021), while S&P Global Ratings last week further slashed GDP growth forecast for the country to 3.5 per cent from the previous downgrade of 5.2 per cent.

Moody’s Investors Service has also slashed its estimate of India’s GDP growth during 2020 calendar year to 2.5 per cent, from an earlier estimate of 5.3 per cent, saying the coronavirus pandemic will cause unprecedented shock to the global economy.

Source: PTI

Is Nifty on a way to make fresh run downside? Scary one!

0
Monthly technical chart of Nifty shows the formation of the descending triangle and is looking for breakout in either direction.
NIFTY, Descending Triangle

Today Indian market reversed most of yesterday’s gain.In a volatile seesaw week , Nifty and Sensex lost around 4% in today’s session.Nifty also formed a bearish candle.Now big question arises…..            Is Nifty a way to make fresh runs downside? Scary one!

Monthly technical chart of Nifty shows the formation of the descending triangle. Nifty is trading near support level since the last couple of days and is likely to break either up or down. 

We believe there is a high probability the Nifty will break down and make new lows.

Nifty is witnessing strong selling pressure each time it is trying to bounce back. 

Trend analysis showed the dominant trend is downwards.

Strong bear candle on Candlestick pattern

Formation of new downward trend line with new tops are lower than previous one which is one of the characteristic of bear market..

Today Nifty found support near 8200 (Today’s low 8,198.35), recovered and closed the day at 8,253.80 down -343.95 (-4%).

We have to look for an 8200 level tomorrow. If Nifty breaks it decisively ,it will likely lead to a new downturn.

India is also facing a rising trend of Corona Virus infected cases.India’s and world’s GDP is slowing in last couple of months. Corona Pandemic ex expected to slow it further.

Global economy already in recession on coronavirus devastation: Reuters poll

Latest stat shows India is having 1974 with 339 new cases.Globally also infected cases are just below 9,00,000. Global market also closed in red today. All major European indices closed more than 3% down.

In case of a fresh down leg , Nifty is likely to find strong support around 7500.It is a level from which Nifty had bounced back recently.

Energy stocks gain helps NIFTY and SENSEX regain bull momentum

0
Energy stocks HPCL and BPCL sparked as the energy index closed the day with 6.95% gain.RBL bank and IndusInd bank closed with sharp cut in prices.
Crude Oil, HPCL, BPCL

Indian stock market started today’s session with a gap up opening.Initial 30 minutes saw profit booking and pushed both indexes down. But both indices recovered as the day progressed to close the day higher.Rally was led by energy and metal stocks, supported by pharmaceutical and FMCG stocks.All sectoral index closed the day in green today.RBL bank and IndusInd bank closed with sharp cut in prices.

Energy stocks shine today following Monday’s steep cut in broader market.Energy index closed the day 6.95 % . Stocks of petrochemical distributors HPCL and BPCL sparked with more than 12% spike in prices.Gail, Reliance, ONGC and IOC also rallied 5 – 8%. Falling crude prices due to weakening demand in the Corona pandemic and price war between major oil exporters are expected to boost these stocks.

Energy stocks shine today following Monday's steep cut in the broader market.HPCL and BPCL sparked  as the energy index closed the day with 6.95% gain.
Energy stocks, Source: NSE

The price of oil has sunk to record low levels not seen since 2002 .Brent crude fell to $22.58 (£18.19) a barrel at one point on Monday.

IndusInd bank was the top loser, closing 15 % down at350.80.Banks market cap now is less than 24,32,9.23 crores following today’s loss. Another private bank, RBL bank  suffered a 9 % price cut. Both banks are trading 80% below its 52 high ( IndusInd bank : 1,823.75and RBL Bank : 716.40). Bandhan bank was another top loser in today’s trade. Bank nifty closed the 1.9 %/ 361.6 points higher. Bank of Baroda, SBI bank and HDFC bank gain 3-6%.

Metal index also closed 5% higher. Sail led the rally with 12 % price rise.Hindalco, Hind copper, Tata steel , Hindustan Zinc and Vedanta gained 5-7%.

Tomorrow’s market is expected to witness resistance around 8640-8680 and likely to remain rangebound.

IRCTC : Next multibagger stock to buy in 2020 bear market.

0
E-ticketing and catering services account for almost 80 percent of IRCTC profit.Company enjoys monopoly in its business in India.
IRCTC

Indian Railway Catering & Tourism Corp Ltd ,well known as IRCTC is a Central Public Sector Enterprise (CPSE) under Ministry of Railways, Government of India. It is “Mini Ratna (Category-I)” CPSE and was incorporated on 27 th September, 1999. E-ticketing and catering services account for almost 80 percent of IRCTC profit.Company enjoys monopoly in its business in India.

What are the core business activities of IRCTC?

  • Catering & Hospitality
  • Online Ticketing
  • Travel &Tourism
  • Packaged Drinking Water sold as Rail Neer

Highlights of business activities:

  • It is the only company providing hospitality services in more than 460 passenger trains on board . 
  • IRCTC also manages Refreshment rooms, Jan Ahaars and Cell Kitchens on railway platforms and is engaged in providing quality food at affordable rates.
  • To attract high income group customers, it has opened 8 Executive Lounges in the railway stations at Visakhapatnam, New Delhi, Vijayawada, Agra Cantonment, Jaipur, Ahmedabad, Madurai and Sealdah .
  • It’s e-ticketing service account for 70% of reserved tickets booked online in 2018-19 on Indian Railways and contribute most to operating profit of the company. 
  • Cumulative production capacity is 11,64,000 bottles per day from 11 Rail Neer plants.

IRCTC reported profit of 270.42 crores rupees before tax in dec 2019 quarter, growth of 240% in comparison to Dec 2018 quarter. In 2018 ,dec quarter company had reported 112.42 crores profit before tax.

E-ticketing and catering services account for almost 80 percent of IRCTC profit.CPSE firm IRCTC enjoys monopoly in its business in India.

E ticketing and catering services account for almost 80 percent of IRCTC profit. It got listed on 14 oct on bourses at huge premium to IPO price of 315 to 320 rupees per equity share. Stock got consolidated in trading range of 880 to 1020 between nov to Jan end. After upward breakout from the consolidation range ,IRCTC climbed to hit high of 1995.00 on strong profit earning.

In current bear market scenario,IRCTC also have witnessed significant correction. On Friday, it closed the day at 898.95 with gain of 42.80 points (5.00%).Stock is currently trading below its 26 days EMA and according to RSI (28.95) is oversold.

E-ticketing and catering services account for almost 80 percent of IRCTC profit.Company enjoys monopoly in its business in India.
IRCTC, Multibagger stock. NSE

In support to 21 lockdown announced by Indian government , Indian railways have stopped operating passenger trains which expected to have negative impact on IRCTC’s revenue and profit.However, Indian Railways is running its freight train 24/7 to ensure the supply of essential commodities like food grain, milk, fruits & vegetables, sugar, edible oil, petroleum products and coal across the country.

E-ticketing and catering services account for almost 80 percent of IRCTC profit.Company enjoys monopoly in its business in India.
IRCTC

IRCTC’s twitter handle is engaged in increasing the awareness level of Corona virus through it’s large follower base.IRCTC have 226.1K followers on microblogging site,Twitter.

Use internet, mobiles to reach out & stay connected & help to spread awareness about Corona Virus.

E-ticketing and catering services account for almost 80 percent of IRCTC profit.Company enjoys monopoly in its business in India.
IRCTC

Long term investors should start accumulating IRCTC at current levels and should add more in case of further fall. Once market condition improves , it is likely going to outperform the market due to the monopoly it enjoys in its business.

2020 bear market is worrisome and going to be worst one?

0
2020 Bear Market, financial crisis, Corona pandemic
2020 Bear Market, Corona Pandemic, Financial Crisis, non performing assets

Indian indices have witnessed a drastic fall in recent months. Nifty 50 has corrected nearly 30 % from it’s high of 12340.5. In doing so NIFTY had given all the gains it had achieved in the last 3 years.Decline in the 2020 bear market is much steeper than one we experienced in the 2007- 2009 financial crisis. Is the 2020 bear market due to Corona pandemic going to be the worst we have experienced?

bear market,NIFTY
NIFTY, BEAR MARKET ( Monthly chart from 1998 to 2020 )

NIFTY hit new 52 weeks low of 7511.10 on 24 March and have rallied more than 1000 points in just 4 trading days.Nifty closed at 8,660.25 on 27 march.This kind of rally are common in bear market.These rally can be harmful if market continue its bear trend and result in Bull trap. Bear trend is more likely to continue as the underlying culprit for the start of bear market has not changed yet and is going to be worse in coming days.

What is responsible for the steep fall in Indian market?

India is fighting its own financial crisis along with Corona virus.

1. Corona Pandemic: Major global markets are trading at a huge discount to their recent high and are in bear territory. Corona infected cases have already crossed 6.5 lakh and the trend is not going to show any decline in coming days. Epicenter of corona is currently in Europe which hosts the world’s most economically rich countries having enough resources to deal with the virus.But speed with which the virus is spreading and causing severe illness these major economies also have come to standstill. Suddenly healthcare services are looking inadequate.NHS in the UK is one of the most efficient healthcare service providers in the world.

Corona dashboard

As per the latest stat India is the only country in the top 10 world’s largest GDP countries who have effectively controlled Corona virus. India has only 0.81 cases per million population.

Here comes the main problem and which is alarming.

In just 1024 cases ,Indian stock market has given approximately 28 percent negative return. If coronavirus becomes wild in India , what will happen to the stock market.Small and mid cap are going to get hammer badly along with index stocks.

NIFTY already tested its major support level around 7500 with low of 7511.1. In the short term it forms important support level.Next support levels 6962 and 6190. In the worst case scenario NIFTY can drop up to 2700 level with which it had found support in the financial crisis of 2007-09. Chances of it will increase if NIFTY breaks is 2007 high of 6190 decisively.

2. Financial crisis and increase in bankrupt companies list

India has been facing its own financial crisis since the last few years. But the stock market was doing better till the start of 2020. Number of financial companies have been reported with frauds and poor risk management.IL & FS, Yes bank, DHFL, Punjab & Maharashtra Co-operative Bank Limited (PMC bank). Anil Ambani led groups companies are having a massive pile of debt burden and are facing difficulty in repaying on time. India’s leading private player in aviation Jet Airways had to shut operation and went bankrupt.

RBI has cut key rates 5 times in last year and once in 2020 to keep India’s growth story intact and support liquidity to spur economic activity. Banking systems in India have a huge pile up of non performing assets. According to one of the leading publishers in India , non performing assets( NPA ) could be more than Rs 9.5 lakh crore.

Hope for the best in coming days! For Acche din ,we all have to get aware about Corona and support the government and local authority to mitigate it’s spread.

Novel Corona Virus COVID- 19 : Brief info and resources.

11
Novel Corona Virus, COVID - 19, Critical illness, Severe illness
Novel Corona Virus, COVID - 19

Novel Corona Virus was first reported in Wuhan city in China ,in December end 2019.Since then it spread across the globe in just a span of two months.COVID -19 is a zoonotic virus. Zoonotic means animals carry the virus and spread it to humans.Critical illness is seen in 6.1 % patients.

Clinical features of Novel Corona Virus infection:

Most cases are seen within 4-5 days following exposure but it can be delayed up to 2 weeks.

Most infected people with coronavirus have mild disease and these patients recover well.

Severity of illnessIncidenceClinical manifestations
Asymptomaticrelatively rareno symptoms
Mild to moderate80%non-pneumonia and pneumonia cases,
Severe13.8%breathlessness, respiratory rate ≥30/minute, blood oxygen saturation ≤93%, PaO2/FiO2 ratio <300, and/or lung infiltrates >50% of the lung field within 24-48 hours
Critical6.1%respiratory failure, septic shock, and/or multiple organ dysfunction/failure
Corona Virus Infection

What are the risk factors for severe illness and death due to COVID – 19?

Age more than 60 years ,chances of dying increases with age

Diabetes

Hypertension

Cardiovascular diseases

Cancer

Chronic respiratory diseases.

Common symptoms :

fever (98.6%) most common symptom, 

fatigue (69.6%), and 

dry cough (59.4%). 

Breathing difficulty and loss of appetite is more common in patients with severe or critical illness patients admitted in ICU.

How is it diagnosed?

A nasopharyngeal swab is collected for analysis with reverse-transcription polymerase chain reaction to detect RNA of virus.

Blood investigations can may show reduced lymphocyte count , prolonged prothrombin time , and elevated lactate dehydrogenase 

Imaging with chest CT in symptomatic patients shows bilateral patchy shadows or ground glass opacity in the lungs.

Protective measures against CoronaVirus recommended by WHO

Regularly and thoroughly clean your hands with an alcohol-based hand rub or wash them with soap and water.

Maintain at least 1 metre (3 feet) distance between yourself and anyone who is coughing or sneezing.

Avoid touching eyes, nose and mouth.

Seek medical care early, if you have fever ,cough and breathing difficulty.

Stay informed on the latest developments about COVID-19. Follow advice given by your healthcare provider, your national and local public health authority.

Corona Virus pandemic have wipe out trillions of money from world’s stock market in last few weeks.It is also expected to caused drastic fall in world’s GDP.

Read five steps to kicking out CoronaVirus here

If someone is looking for more info please visit following trusted resources:

Corona Virus disease 2019

See latest update on Corona virus situation worldwide here

World Health Organisation ( WHO )

Get answers to your common questions here

Centers for Disease Control and Prevention ( CDC )

United Nations (UN)

Market lose early gain despite cut in key rates by RBI

0
cut in key rates, repo rate, reverse repo rate, RBI, policy meet,
RBI, Policy meet

Indian market started the day with positive note with major indices gaining more than 2%. Nifty traded initial hour of trading above 8900 and SENSEX above 30000.Today RBI announced a cut in key rates to increase liquidity in the market in a policy meet .Despite cut in key rates, NIFTY and SENSEX gave away early gains.Yesterday Finance minister Nirmala Sitharaman announced 1.7 lakh crores relief packages to fight against Corona virus.

Key highlights of RBI meet :

  • Reduced the repo rate by 75 basis points to 4.40 per cent from 5.15 per cent with immediate effect;
  • Marginal standing facility (MSF) rate and the Bank Rate stand reduced to 4.65 per cent from 5.40 per cent;
  • Reduced the reverse repo rate by 90 basis points to 4.0 per cent;
  • To support growth maintaining medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent;
  • Increasing probability that large parts of the global economy will slip into recession;
  • Emerging and advanced economy currencies are experiencing severe depreciation pressure.

Currently market is experiencing selling pressure on every rise in prices.After yesterday’s blockbuster day,IndusInd started day with more than 15 % but lose stream after RBI policy and currently trading 6 % down at 410.8. Axis Bank is holding on gain and trading more than 10 % gain at 383.Axis bank hit intraday high of 409.45.

IndusInd bank, Maruti, Bajaj finserv and Bajaj finance have witnessed more than 5% cut in prices and are trading near days low. Market is expected to remain choppy in the coming days with negative bias.

Bank NIFTY is trading flat having given away days gain.Bank NIFTY had hit a high of 21,462.40 in early morning session. Last it traded at 19,617.55. Bandhan bank and Axis bank are trading higher with gain of more than 5%.

Nifty Auto index is trading 3% lower. Bharat forge,TVS motor, Maruti , Hero motocorp and Eicher motors are major losers having lost between 4 to 6%.

Market is on a way to end its three days positive run.In last three trading days ,NIFTY have gain more than 15%.Interest sensitive sectors like Banks,Realty and auto sectors are expected to hit hard by 21 days lock down despite cut in key rates.

Market gained for third consecutive day on stimulus measures

1
Oower is a Content sharing tool to discover the daily life happenings in global economy ,stock market, express opinions & reviews.
OoWER: Just say it!

Indian major indices NIFTY and SENSEX continued their rally for the third day on government’s announcement of stimulus measures. NIFTY closed at 8,641.45 with 323.60 points (3.89%) gain while SENSEX closed at 29,946.77 with gain of 1,410.99 (4.94%).IndusInd bank was the buzzing stock of the day with more than 46 % gain.

Now NIFTY is trading more than 1000 points from its 52 weeks low of 7,511.10, which was made on 24 march.It means NIFTY has gained 15 percent from its 52 weeks low in just three days.

SENSEX is trading more than 4000 points from its 52 weeks low of 25,638.90. Sensex is trading16 % higher than its 52 weeks low.

Today’s rally was led mainly by interest rate sensitive stocks such as banking and financials ,realty stock. These stocks have been badly hammered in last few weeks.IndusInd bank stock shine with 46% gain.IndusInd bank stock is now trading almost 87% higher than its 52 weeks low price of 235.55.Despite gaining so much ,stock is trading way below its year high of 1,834.40.

Larsen and Toubro, Bajaj finance, Bharti Airtel, Hero motocorp gain around 7- 10%.Gail,HCL tech and Sun Pharma was top losers in today’s trade.Reliance saw some profit booking and closed 13.25 down at 1069 after yesterday’s rally.Total 39 stocks advanced and 11 declined in today’s trade in NIFTY.In SENSEX only 4 out of 30 stocks closed in the red.

Finance minister Nirmala Sitharaman announced 1.7 lakh crores relief packages to fight against Corona virus. These relief measures are especially meant for helping poor.

Key highlights:

  • Insurance cover of Rs 50 Lakh per health worker fighting COVID-19 to be provided under Insurance Scheme
  • 80 crore poor people will to get 5 kg wheat or rice and 1 kg of preferred pulses for free every month for the next three months
  • 20 crore women Jan Dhan account holders to get Rs 500 per month for next three months
  • Increase in MNREGA wage to Rs 202 a day from Rs 182 to benefit 13.62 crore families
  • An ex-gratia of Rs 1,000 to 3 crore poor senior citizen, poor widows and poor disabled
  • Government to front-load Rs 2,000 paid to farmers in first week of April under existing PM Kisan Yojana to benefit 8.7 crore farmers
  • Central Government has given orders to State Governments to use Building and Construction Workers Welfare Fund to provide relief to Construction Workers

But today’s announcement, no specific measures were announced for the revival of the economy . Some measures may be expected to come in a few days time as GDP growth is expected to fall after implementation of 21 days lockdown across India.

It’s a Black Monday! 31 Index Nifty stocks hit a new 52 weeks low.

0
Black Monday, Corona Pandemic
Black Monday, Corona Pandemic

No respite from Corona pandemic! It’s again black Monday for Dalal street. Banking and financial stocks especially Axis Bank, Bajaj finserve were the worst hit and both suffered nearly 27 % loss.

Till afternoon total 415 corona positive cases are being reported in India causing 7 death.

Indian stock market opened gap down on weak global cues and growing concerns due to Corona pandemic. Sensex hit lower circuit in first hour of trading and hence trading was halted for 45 minutes. Today it was truly black Monday, as 31 of NIFTY stocks hit a new 52 weeks low.

All sectoral indices ended the day in red. Banking, financials and auto stocks were most badly hurt and collapsed around 15 %.All Nifty and Sensex stocks ended in red. In today’s blood bath 31 stocks hit a new 52 weeks low.

Sr NoIndexCloseLoss
1Nifty7,610.25-1,135.20 (12.98%)
2Sensex25,981.24 -3934.72 (13.15%)
3Bank Nifty17,018.35-3,299.25 (16.24)
Major Indices

Let’s have a look at stocks which hit a new 52 week low.

Sr NoStock52 week low% loss
1Coal India120.053.95%
2NTPC73.205.23%
3M & M280.607.08%
4Tata Steel253.558.63%
5Sun pharma315.059.1%
6BPCL262.309.41%
7Shree cement16,068.159.54%
8Hero Motor1,520.0011.05%
9HDFC bank765.0011.77%
10Reliance875.6512.47%
11Britannia2,100.0012.6%
12SBI180.2513,3%
13TATA Motors66.0013.71%
14Titan771.2513.84%
15Tech Mahindra471.4014.13%
16Bajaj Auto1,900.0014.42%
17Eicher motors13,326.7014.76%
18Hindalco84.9014.88%
19UPL240.1515.23%
20Adani ports203.0016.15%
21Vedanta (VEDL)61.6516.5%
22LT706.0016.62%
23JSW Steel136.1016.98%
24Grasim397.0517.65%
25Maruti4,141.0017.74
26ICICI Bank280.0018.31%
27ZEEL115.9519.98%
28Bajaj finance2,225.0022.73%
29IndusInd330.1023.92%
30Bajaj Finserve4,449.0027.48%
31Axis Bank302.0027.6%
New 52 weeks low

Trading halted for 45 min as SENSEX hit lower circuit

1
Sensex surged over 500 points in opening trade led by gains in Reliance Industries, HDFC duo and ICICI Bank amid thin trade in Asian markets.
SENSEX

Sensex hit lower circuit around 10.13 causing exchange to halt the trading for 45 min.Sensex was trading at 26,924.11 ,down 2991.85 points(-10.00%) and NIFTY at 7,903.00 down 842.45 (-9.63%) when last traded.Bank nifty is down 12.7% (2588.3 points) at 17729.3. Axis bank and ICICI bank were the worst hit.

Indian stock market opened gap down with a huge cut after Friday’s rally.NIFTY opened the day at 7,945.70 while SENSEX at 27,608.80. Both indices tried to recover but it lasted just for 5 min. Since then both NIFTY and SENSEX saw free fall.

Bank, financials, auto and reality stock were the worst hit.All Nifty and Sensex stocks are trading down.

In Nifty, Axis bank,IndusInd bank, ICICI bank and Adani Ports are trading down with more than 15 % cut in prices.While in Sensex Axis bank and ICICI bank saw more than 15 % cut in prices.

Crude oil prices halved but prices of petrol & diesel just corrected less than 10%.

1
The government hiked excise duty by a record Rs 10 per litre on petrol and Rs 13 per litre on diesel to garner Rs 1.6 lakh crore revenues.
Representative Image, Photo by Skitterphoto on Pexels.com

Global Crude oil prices are seeing significant correction since the beginning of 2020. Brent crude oil had hit the 2020 high of $70.74 on 6 Jan.It had reached a 52 weeks low of $24.52 on 18 March. Currently its trading around $27.3.Indian crude oil basket for 1 bbl closed at 1938 rupees on 20 march.One barrel is equal to 158.98 lit.Today petrol cost 69.59 rupees in Delhi and diesel .Government is using falling crude oil prices to achieve revenue target by increasing excise duty.

It means global Brent crude oil prices have almost halved since the start of 2020.It saw steep correction after world’s biggest oil exporter Saudi Aramco announced price cut in crude and entered price war on breakdown of alliance talk with OPEC members and Russia.Corona pandemic. Aramco is also increasing crude oil production to increase the supply.Corona pandemic also has contributing to the situation with meltdown in global stock markets.

But why petrol and diesel prices have not seen so much price cut?

One may wonder as petrol and diesel prices in India are synced with global crude prices. Oil distribution market in India is predominantly dominated by government run PUC companies like IOC,HPCL,BPCL.

Let’s have a look how petrol and diesel in Delhi have performed in the last three month.

Sr NoPetrol (in rupees)Diesel (in rupees)
1 Jan75.1467.96
1 Feb73.1966.22
1 March71.7164.30
Petrol and Diesel prices

It means petrol and diesel prices in India have just reduced by less than 10 % in three months.Though Brent crude oil and Indian crude oil prices have almost halved in the last three months.

Government last week increased excise duty on petrol and diesel prices by 3 rupees to increase the revenue. It means consumers are unlikely to benefit significantly from the falling crude oil prices. If crude prices corrects further , we may see another excise duty hike in coming days.

Corona pandemic is likely to reduce world GDP including India.In fact .Oxford economic have outlined two possible scenarios based on Oxford Global Economic Model: a) the pandemic is limited to Asia, and world GDP falls $0.4tn (0.5%) in 2020 b) In a global pandemic, it drops $1.1tn (1.3%). Revenue correction will also likely to drop along with GDP .Thanks to falling crude oil prices , the government is using it effectively to mitigate revenue shortfall.

Stock market bounced back from early loss , posted huge gain.

1
Sectoral indices,Stock market bounced back
NIFTY, SENSEX, Sectoral Indices

Stock market rally from days low, ending this week’s bearish trend. All sectoral indices ended the week on positive notes.NIFTY closed the day above 8700 and SENSEX ABOVE 29900.

NIFTY opened the day on a positive note following global clues but turned bearish for a while and kept on rising through the day.It hit a high of 8883 points in the afternoon session. Last 2 hours saw extremely volatile sessions and saw swings of more than 300. Finally it closed the day with 482 (5.83%) higher than yesterday’s close.

Sensex also ended day on high note at 29,915.96 (+1627.73 +5.75%).Only HDFC bank and IndusInd bank saw drop in prices.Sensex rally was predominantly led by ONGC, Ultratech, HUL, Reliance; each of them rising more than 10%.

Today’s stock market bounced back was led by energy, IT, FMCG and metal stocks. Bharti infratel was the biggest gainer with 22.6 % gain followed by ONGC (+17.7%) and GAIL (16.4%).

Bank nifty had extreme volatility and saw swing of 1659.5 points from days low. It closed marginally up at 191.05 (+0.95%).Bandhan Bank was top gainer with 17 % spike in price. Surprisingly Sectors leaders such as HDFC Bank, Axis bank,IndusInd bank and RBL bank closed in red losing between 0.76 – 3.73 %.

Let see how sectoral indices performed today.

Sr NoSectoral indicesGain/loss
1Nifty Auto+3.71%
2Nifty Bank+6.65%
3Nifty Energy+8.81%
4Nifty Financial Services+2.96%
5Nifty FMCG+8.77%
6Nifty IT+8.52%
7Nifty Media+3.42%
8Nifty Metal+7.68%
9Nifty Pharma+4.07%
10Nifty PSU bank+1.81%
11Nifty Realty+2.33%
12Nifty Private bank+1.11%
Sectoral indices

Low risk investment strategies for the bear market

0
low risk investment strategies for bear market
Photo by Pedro Figueras on Pexels.com

A bear market is referred to a fall in the stock market prices below 20 % from its recent high.Bear market can considerably erode the wealth of investors in a very short time.But smart investors can generate profit or restrict their losses to minimum from the falling stock prices by using low risk investment strategies.Let’s have a look on strategies for the bear market:

Buy a put option: A put gives the holder of it the right, but not the obligation, to sell a defined amount of the underlying security at a certain price at or by a certain date. It has the potential of  infinite returns in a falling market scenario. Risk is minimum to premium paid for buying the put option. High net worth investors can use it to hedge the large position in particular share to keep the losses minimum if bears dominate the market

Buy defensive stock: Buy shares from defensive sectors such as fast moving Consumer goods and pharmaceuticals/ healthcare stocks. These sectors commonly have low beta stocks and witnessed less catastrophe during the bear market.Avoid risky stocks such as reality, automobiles, financials and metals.

Value investing: Value investors are one who buys out of favour stocks which are available at a cheap valuation and has very strong fundamentals.These stocks have tremendous potential of giving good profit when the market scenario changes to a bull market.

Diversification of portfolio: Diversification of portfolio into fixed income assets such as bonds, gold and shares help to keep losses in check. In general precious metal such as gold and silver prices climb in falling stock market scenarios.

Invest in mutual funds: Mutual funds offer diversification and are usually managed by expert fund managers at a low cost. Fund managers pull together money from different investors and invest it in various verticals such as shares, bonds etc.

Start SIP (Systematic investment plan): If somebody is looking for low risk strategies for bear market, he or she must start or continue SIP in quality stocks. Monthly SIP helps to accumulate quality stocks over the time horizon. Over time it has exponential growth potential.During bear market stock prices fall and it provides a good opportunity to accumulate stock at a reasonable price.

Indices crashed again, NIFTY near 8.5k & SENSEX below 29k.

0
Sensex soared over 900 points in opening trade tracking heavy buying at ICICI Bank, Infosys, HDFC twins and Reliance Industries amid rally in global stocks.
NIFTY, Sensex

All major indices crashed today; led by Banks, financials, reality and auto. closed the day at 8541.50 with 4.75% dropped in points. NIFTY started today’s session with brief gain but turned negative and kept on losing whole day. It reached new intraday 52 weeks low at 8,407.05.SENSEX also crashed more than 5 % to close at 28,869.51; down 1,709.58 (5.59%).

Now, both NIFTY and SENSEX are now trading near early 2017 levels. In just a month both indices have crashed to erase three years gain.

NIFTY:

44 stocks declined while 6 advanced in today’s session. ZEE entertainment enterprises limited (ZEEL) was the biggest gainer with 34.9 point (26.22%) spike in price.ZEEL closed the day at 168.00. Yesterday ZEEL had declined by more than 20%.Yes bank also continued its rising trade with gain of 4.18%.

Banking stocks and financials were biggest loser of the day led by IndusInd bank, Kotak Bank and twin Bajaj group of companies i.e .Bajaj Finserv limited, Bajaj Finance limited. Automobile companies especially Hero motocorp, M & M , Eicher motors,  Maruti also ended in red with losses from 3-8%.

SENSEX:

In 30 SENSEX stocks only ONGC and ITC closed in green. ONGC closed at 65.95 with gain of +5.90 (+9.83%). On 16 March,ONGC had declared 5 rupees interim dividend.

Yes bank’s share jumps more than 55 %

2
Share reached intra day high of 63.56 in early trading hours.
Yes Bank

Yes bank shares jumped more than 55 intraday and is currently trading at 55.70 with a gain of 20.70 points. Share reached intra day high of 63.56 in early trading hours. In the Dec quarter result company had announced it’s gross NPA has increased to 4,070,920 lakh rupees (18.87%).

Private sector lender’s share is on rise since it reached a low of 5.65 on 6 march after Government’s approval of SBI led consortium to rescue cash strapped bank. India’s largest public sector bank is investing 7500 cr for 49 percent stakes in Yes bank.

Bank had reported on 14 march huge losses of 18,560.31cr for dec quarter.Bank is having gross NPA 4,070,920 lakh rupees (18.87%) and net NPA 1,111,472 lakh (5.97%) . In the Dec quarter of 2018 , the bank had gross NPA 515,862 lakh rupees (2.10%). It means companies’ non performing assets have increased almost 8 times in the last 12 months.

Image source: Yes Bank

Indus Ind bank and IDEA jumps more than 45 % intraday.

0
Indus Ind Bank and IDEA jumps more than 45 % form intraday low
Indus Ind Bank, Idea, Market capitalisation
Share prices of two stocks IDEA and Indus Ind bank witnessed gain of 46.4% and 48 % from intraday low respectively.
Source: Indus Ind Bank

On 13 March 2020, NIFTY and Sensex saw historical intraday recovery from days low. Share prices of two stocks IDEA and Indus Ind bank witnessed gain of 46.4% and 48 % from intraday low respectively.

Pune based private lender Indus Ind bank jumped more than 250 points from days low. Stock opens day at 724, dropped to reached 52 weeks low at 551.10. It recovered and closed the day at 807.3 with 2.89 % gain . Share prices recovered almost 46.4 percent from days low during volatile trading session. Private lender have market capitalisation of 55,98,831.28 lakh at close. It means bank added 25,97,857.71 lakh in its market capitalisation intraday.

IDEA shares also closed the day with gain of 35.71 % at 5.70. Idea shares had dropped to 3.85 during early hours of trading.IDEA shares saw gain of 48 percent from days low. Telecom stocks were trading higher over speculation of possible reliefs package for the sector from government.

Corona Virus effect: World’s major stock markets turned bear !

3
World's major stock markets turned bear !
COVID-19 (WHO)

Major stock markets turned negative due to fear of Corona virus on global growth.Oxford economic in its forecast had said, In 2020 global growth will slow to just 2.3%, its weakest since 2009 . World health organisation had alarmed Novel Corona virus COVID -19 outbreak as Pandemic. World Health Organisation (WHO) defines pandemic as a worldwide spread of a new disease.

COVID -19 have already affected more than 1 lakh people.Although recent data suggest its growth is slowing down in China .Corona virus cases had erupted in Wuhan ,China in December last year. Recent WHO data suggest 1,24,847 confirmed cases of COVID-19 span over 118 countries /areas or territories.

World’s major stock market turned bear and are witnessing sharp drop in last couple of days and have turned bear.Bear markets are defined as more than 20% decline in stock prices from near-term highs.

Sr No.IndexLow 1 Month Percentage change
1Dow Jones21,297.88– 26.60
2S & P2,500.65– 25.66
3NASDAQ7279.95– 24.29
4NIKKEI 22518,342.7– 21.64
5FTSE 1005243.2– 29.42
6CAC4,025.89– 32.47
7DAX9139.12– 32.08
World’s Major Stock Indices

Surprisingly China’s Shanghai Composite have given 1 month positive return at 0.75% and negative return of only – 2.93% for week.

In todays trade, major European market crashed more than 10 percent in response to announcement of suspension of travel from Europe to contain Corona virus by U.S. President Donald Trump. All major US indices are also trading more than 8 percent down.

NIFTY and SENSEX both suffered huge losses in today’s trade due to fear of rising cases of Corona virus in India and weak global clues. NIFTY closed day at 9590.15  with drop of 868.25  points (-8.30%), while SENSEX closed 2919.26 points down at 32778.14 (-8.18%). Index heavyweight like HDFC,HDFC Bank, Reliance industry and ICICI bank contributed most to today’s SENSEX fall.

International Women’s Day special: Richest women in the world!

0
Richest billionaires
Richest women, wealthiest women in the world, International Women's Day
Abigail Johnson

International Women’s Day is celebrated on the 8th of March every year.This year’s theme for Women’s Day is, I am Generation Equality: Realizing Women’s Rights.” On this Women’s day we will have look on wealthiest women in the world

World billionaire’s list is predominantly dominated by mens over the years.But now world is changing and in 2020 ,there are 11 women in Top 100 Worlds billionaires list based on 7 March net worth.(Source : Forbes)

Lets have look on wealthiest women in the world on International Women’s Day:

1) Francoise Bettencourt Meyers:

Richest woman in the world is granddaughter of L’Oreal’s founder Eugène Paul Louis Schueller.

Her net worth is estimated around $56.6 and Rank 15 in top 100 billionaires list.

2) Alice warton :

She is richest billionaire in United states and is only daughter of Walmart founder Sam Walton.

ALice Warton is having net worth of around $52.4B.

3) Jacqueline Mars :

Jacqueline Mars own estimated one third of the world’s largest candy maker, Mars.

Her net worth is estimated around $29.4B.

4) Yang Huiyan:

Yang Huiyan owns 57% of real estate developer Country Garden Holdings, Chiana. She is youngest women billionaires in top 100 list and richest women in Asia.

Yang Huiyan and family net worth is estimated 22.1

5) Susanne Klatten:

Susanne Klatten owns 19.2% of Munich based German automaker Bayerische Motoren Werke (BMW).

Her net worth is estimated around $20.2B and is second richest women in Europe . Francoise Bettencourt Meyers is richest women is Europe and world.

6) Laurene Powell Jobs :

Laurene Powell Jobs is wife of Late Apple founder Steve jobs.Her net worth is estimated at $22.7B and is predominantly contributed by stocks of Apple and Disney.

7) Abigail Johnson :

Abigail Johnson is CEO of Boston based giant, Fidelity Investments. Fidelity investments was founded by Her grandfather, Edward Johnson II in 1946.Abigail Johnson ranked seventh among the wealthiest women in the world.

Her net worth is estimated at $14.9B.

8) Charlene de Carvalho-Heineken :

Charlene de Carvalho-Heineken ranks 89 in world’s billionaires list , thanks to her 23% controlling stake in beer giant Heineken.She and her family is having estimated $15.8B net worth.

9) Gina Rinehart :

She is executive chairman of Hancock Prospecting and is richest billionaire in Australia.

Her net worth is $14.8B.

10) Kwong Siu-hing :

Kwong Siu-hing is having net worth of $13.3B and is a biggest stockholder of Hong Kong based real estate giant Sun Hung Kai .

11) Iris Fontbona:

Fontbona and her family control Chile based mining giant Antofagasta Plc.

She and her family have estimated $12.8B net worth.

Yes bank share dropped to record low at 5.65.

0
Nifty ,Sensex, Bank, Yes Bank, nifty closed below 9000
Photo by Pixabay on Pexels.com
dropped to record low,stock registered 52 week low
Yes bank

In early hours of trading, Private lender Yes bank stock prices dropped to record low of 5.65. Yesterday, share were closed at 36.8 .Stock registered 84.64 percent drop in the price for a day. Stock recovered 290% from day’s low and is currently trading at 16.4.

According to NSE data, lenders market capitalisation is just 4,18,277.45 lakhs rupees now.

In yesterdays, trade stock prices had zoomed by more than 27 percent after Government have created SBI led consortium to buy stakes in Yes bank.

Stock reacted today harshly to rating downgrade by JP Morgan .On 5 March, JP Morgan cut price target to just 1 rupees from 55 rupees earlier.In today’s trading,dropped to record low and stock registered 52 week low at 5.65. Yesterday, central government had put cap of 50000 rupees for withdrawal of money from the bank.

Worst is coming? Reality check!

1
Photo by Jakob on Pexels.com

Stock markets are experiencing volatile days with prices swinging on either side drastically.

Dow jones saw highest ever single day price gain in his history in point term (+5.10% or +1,296.81 points) . More than 5% gain have occurred only seven times since 2000 in Dow jones. Investors are getting some sense of relief after thrilling last week ,were Dow jones had lost by whooping 12 percent. It’s only on hope of world major central bank will cut rate to boost growth including Federal reserve. Fed can’t just cut fund rate in emergency every time when stock market blinks.Today after emergency fund rate cut ,fund rate stand at 1% . This level we had seen around March 2017, when economy was growing and Fed was increasing rates.

Only miracle for sustained rally in current scenario is : If something promising happens on the development of Vaccine for Corona virus.

Situation seems going to be worse in coming days if world fails to contain corona virus. World’s major economies are already facing decline in growth rate including USA, China, India etc in last few quarters; inspite of lowering of rates by major central banks.

When credit crisis erupts in August 2007 , US economy was growing at 1.876% in 2007. Fed reserve rates were 4.75 % in Sep 2007. US economy went into Recession in Dec 2007. Fed cut rates over the time to spurt growth rate, reduce unemployments and increase spending. Fed fund rate was just at 0.25 % in Dec 2008. Serial rate cuts, bail out (Bear stearns, AIG and bak bailout) and tax rebate helped US economy to come out of recession in June 2009. Between long time of 2008 to 2015 Fed fund rate were kept at zero.

2020 situation looks glimpse. There is not much room for the Fed reserve to cut rate from 1 % (after Todays rate cut of 0.5%) .GDP growth rate is already lower compared to previous two years.

201720182019
GDP growth rate2.4%2.9%2.1%
Unemployment4.1%3.9%3.5%
Inflation 2.1%1.9%2.3%
thebalance

One more reason investors need to worry is presidential election in 2020.Second term for Trump may provide some boost to market, But we don’t know the future; surprises….. are always there in catastrophe.

Where is NIFTY headed: Bear territory ? Or It’s just correction?

1
low risk investment strategies for bear market
Photo by Pedro Figueras on Pexels.com
Photo by Pedro Figueras on Pexels.com

Last week NIFTY dropped nearly 3.7 % .Global markets have witnessed drastic correction over the week on fear of impact of Corona virus.The Dow and S&P 500 each dropped 12% and 11% for the week, respectively. Its worst weekly performance since subprime crisis.

NIFTY had fallen 3.7% i.e 431.55 points in week. NIFTY is currently trading below 50,100 and 200 day SMA. It saw sharp gap down opening on Friday on poor global clues.NIFTY is expected to form support around 11075-11110 and next immediate support is around 10700-10750.In short term market is expected to trade in range with negative bias.

India’s economy is also not showing any encouraging signs with GP growth at 4.7% for Oct-Dec 2019 quarter.

Out of 50 stocks in Index NIFTY, 18 are trading near 52 week low (within0-7% range) , while only 4 are trading near 52 week high. Metal and Auto stocks saw drastic correction, especially Vedanta ( l3.56 %), TATA Motors ( 10.74%) are badly affected.

GDP Growth: Is Latest Corona pandemic fear real?

5
Corona Virus

World Health Organisation (WHO) defines pandemic as a worldwide spread of a new disease. Currently Corona virus is considered as epidemic. As of WHO data on 27 Feb , 46 countries have recorded confirmed case or cases of Corona virus.

Let’s have look on past pandemic and how it affected regional and/or global economy.

1918Spanish flu influenza pandemic20 million–100 million deathsGDP loss of 3 percent in Australia, 15 percent in Canada, 17 percent in the United Kingdom, 11 percent in the United States
1957Asian flu influenza pandemic0.7 million–1.5 million deaths GDP loss of 3 percent in Canada, Japan, the United Kingdom, and the United States
1968Hong Kong flu influenza pandemic1 million deathsUS$23 billion–US$26 billion direct and indirect costs in the United States 
1981HIV/AIDS pandemicMore than 70 million infections, 36.7 million deaths2–4 percent annual loss of GDP growth in Africa
2003SARS pandemic8,098 possible cases, deathsGDP loss of US$4 billion in Hong Kong SAR, China; US$3 billion–US$6 billion in Canada; and US$5 billion in Singapore
2009Swine flu influenza pandemic151,700–575,500 deaths GDP loss of US$1 billion in the Republic of Korea
2015Zika virus pandemic2,656 reported cases of microcephaly or central nervous system malformation US$7 billion–US$18 billion loss in Latin America and the Caribbean
Disease Control Priorities: Improving Health and Reducing Poverty. 3rd edition.

The Corona virus pandemic may heart Global economy badly .Oxford economic have outlined two possible scenarios based on Oxford Global Economic Model: a) the pandemic is limited to Asia, and world GDP falls $0.4tn (0.5%) in 2020 b) In a global pandemic, it drops $1.1tn (1.3%).

Oxford economic in forecast said, In 2020 global growth will slow to just 2.3%, its weakest since 2009 .

Sharp reaction to CPSE Index Changes

0
One of the world’s largest transmission utilities

Constitute of CPSE Index

Bharat Electronics Ltd, Coal India Ltd, SJVN Ltd, NBCC (India) Ltd,NLC India Ltd,NTPC Ltd, Oil & Natural Gas Corporation Ltd,Oil India Ltd, Power Grid and Cochin Shipyard .

Why CPSE Index was formed?

To facilitate Government of India’s dis-investment initiative; some of its stake in selected Central Public Sector Enterprises were traded trough ETF route.

Recent changes in Index is effective from 23 Jan 2020.

How market reacted?

Share prices of recently included CPSE i.e. Cochin shipyard, NHPC, NMDC AND Power Grid corporation are on sharp rise on hope of increase participation on institutional investors in coming days.While excluded Indian Oil Corporation and Power Finance Corporation have seen sharp decline in last few days. Share prize of Indian oil corporation is trading near 52 week low.

Top 5 pvt banks stare at NPAs doubling to 5% in FY21

0
Private sector lender, Axis Bank on Tuesday reported a loss of Rs 1387.78 crore for the quarter ended March 2020 on higher provisioning cost.
Axis Bank,


Mumbai, Jul 10 (PTI)
 Top five private sector banks may see their slippages double to 5 per cent this fiscal due to the poor loan offtake and the moratorium-driven contraction in net interest margins, warns a report.

These five banks — HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and IndusInd Bank — collectively control a quarter of the system and three-fourths of the private banking space, according to a report by India Ratings on Friday.

“We forecast FY21 slippages to nearly double to around 5 per cent for these banks from 2.3 per cent in FY19 and 2.7 per cent in FY20, even though net slippages would be lower if refinancing remains a challenge, resulting in a 4 per cent contraction in their net interest margin,” says the report.

As loan demand remains tepid, banks are parking their excess liquidity in low yielding alternatives such as government bonds and top-rated corporate securities due to their higher credit risk perception and widening duration spreads, even as deposit inflows have been robust.

On the other hand, growth in deposits for these top five private banks in FY20 was 18.8 per cent which was 18.5 per cent in FY19, while loan growth declined to 15 per cent from 19.1 per cent during this period. Additionally, the Reserve Bank has injected Rs 1.7 lakh crore of liquidity into the system over the last six months through open market operations and secondary market purchases.

Without quantifying, the report expects a significant spike in delinquent assets due to the deep troubles the economy is facing due to the impact of the GDP destruction on the banking sector in the aftermath of COVID-19 pandemic.

Additionally, banks have moved a large amount of the surplus liquidity into reverse repo where the rates have declined by 215 bps in the last one year, yielding 3.35 per cent and with cost of funds falling to 5-6 per cent, this could result in a negative carry.

Over FY17-FY20, net advances of these five private banks and bank credit grew at a CAGR of 15.7 per cent and 9.1 per cent, respectively, while the unsecured retail portfolio grew at a CAGR of 21.8 per cent, and these give banks have increased the proportion of unsecured retail portfolio over the same period.

Analysts at the agency also expect pre-provisioning operating profit or operating buffers of these lenders to be about 80 bps lower than their steady state pre-provisioning operating profit, which in FY20 was 4.9 per cent which may curtail their ability to withstand credit costs without capital erosion, the report warned.

Analysts at the agency attributed fall in operating buffers as outcomes of lower portfolio yields due to an increase in slippages; poor loan growth and transaction volumes and the resultant lower fee and other income; slower pace of repricing for deposits reflecting the falling interest rates; and higher liquidity deployed in low earning government securities or under reverse repos.

Stating that the impact of the rising bad loans will not be benign, the report notes that this comes at a time when sector was putting its house in order after the last six painful years on the corporate side, even though retail, SME and agri loans were already showing up pain areas before the pandemic hit all of us.

Zomato FY20 revenue jumps to Rs 2,960 cr

0
Online restaurant guide and food ordering platform Zomato said it is going to layoff around 13 per cent of its workforce on account of COVID-19 pandemic.
COVID-19 pandemic.

New Delhi, July 10 (PTI) Online food ordering platform Zomato on Friday said its revenue in the last financial year jumped over two fold to USD 394 million (around Rs 2,960 crore) as compared to 2018-19.

The earnings before interest, taxes, depreciation, and amortization (EBITDA) in the last financial year stood at around Rs 2,200 crore, Zomato said in its performance report.

In 2018-19, the revenue was about Rs 1,440 crore and EBITDA stood at Rs 2,080 crore.

“Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey,” Zomato said.

While COVID-19 has impacted the size of the company’s business, it has accelerated its journey to profitability. “In terms of the size of the business, COVID-19 has set us back by a year or so, but a year is only a small blip when one is building a company for the next 100 years,” it added.

“COVID-19 has positively impacted the health of our business we seem to have gained 2-3 years along this vector. In July 2020, we estimate our monthly burn rate to land under USD 1 million, while our revenue should land at around 60 per cent of pre-COVID peaks (USD 23 million per month),” the report said.

Zomato expects to make complete recovery over the next 3-6 months while continuing to maintain tight control on costs and profitability, it added.

Highlighting the performance of its business segments, Zomato said FY20 was a defining year for food delivery in India. While FY19 saw hyper-competition between 4 well-funded food delivery players, FY20 ended with a two player market structure, it claimed.

The company’s FY20 India Food Delivery gross merchandise value (GMV) grew to USD 1,496 million (over Rs 11,250 crore) as against USD 718 million (over Rs 5,395 crore) for 2018-19, the report said.

As of now, food delivery GMV has recovered to 60 per cent of pre-COVID levels. “We have taken a number of important steps to ensure safety of our food delivery customers, which has been a significant driver of the rebound in our business so far,” it added.

As offices start opening up, these professionals are now starting to move back to the larger cities and the company expects sharp recovery in order volumes as lockdown continues to ease and the operating environment improves, the report said.

The unit economics of the company’s food delivery business have improved consistently over the last 18 months, it added.

About the Dining out, the report said, “Our dining out business grew steadily in spite of headwinds (e.g. logout campaign against Zomato Gold by restaurants in India) with significant gains in EBITDA margins across India and our international markets in FY20”.

Dining out revenue grew to over Rs 421 crore in 2019-20 as against about Rs 349 crore in the preceding fiscal, it added.

This business is fast moving towards being a transaction-led business where the focus is to close the loop with restaurants by encouraging users to pay their eating-out bills through the Zomato app, the report said.

The recovery in the dining out is going to be slow. Users will be concerned about social distancing and hygiene and restaurants will need to reorganise themselves to be able to build trust with users on these fronts, it added.

Emphasising that its B2B supplies (Hyperpure) is growing strongly, Zomato said it believes that it has early indications of a strong product market fit.

“Until now, we have only been serving Delhi and Bengaluru with Hyperpure. We have covered a lot of ground in the last two years, and we are now expanding rapidly into new cities,” the report said.

The Hyperpure revenue for 2019-20 stood at over Rs 110 crore as against about Rs 13 crore in the previous year, it added.

About its social responsibility arm, Zomato Feeding Foundation, the report said the foundation aims to be the largest and most impactful not-for-profit aimed at solving hunger needs in the developing world.

Feed the Daily Wager campaign collected Rs 32 crore which was used to distribute over 65 million meals in the form of ration kits to the daily wager community, hit hard by the COVID-19 crisis, it added.

“We aim to grow our Feeding Foundation community multiple folds going forward. Solving hunger is a massive problem, but a solvable one if all of us just started caring about it enough,” the report said.

The report also said Zomato has reinstated all the original salaries of its employees who had agreed for salary cuts during the initial days of the COVID-19 crisis.

Source:PTI

SAIL net profit rises multi-fold to Rs 2,647 cr in Mar quarter

0

New Delhi Jul 10 (PTI) State-owned SAIL on Friday said its consolidated net profit jumped multi-fold to Rs 2,647.52 crore during the quarter ended March 31, helped by reduced expenses.

The firm had posted a net profit of Rs 548.20 crore in the corresponding quarter of the previous financial year, the company said in a BSE filing.

Its total income during the March 2020 quarter stood at Rs 16,574.71 crore, against Rs 18,719.29 crore in the year-ago period.

Total expenses during the quarter fell to Rs 11,682.12 crore as compared with Rs 17,964.25 crore a year ago.

In a statement, its Chairman Anil Kumar Chaudhary said, “SAIL has continued to earn profit consecutively for two years despite the challenging times. The government’s supportive policies have played a pivotal role in maintaining the profitability of the company.”

He further said the company is continuously striving to improve its performance by increasing sales, share of value-added and special steels and new products.

The firm said it also achieved its best-ever annual sales of 14.23 million tonne (MT) during the financial year 2019-20.

The firm produced 16.15 MT of crude steel in 2019-20, it said.

Source:PTI

Punjab National Bank shares tank nearly 7 pc

0
State-owned Punjab National Bank (PNB) has said its standalone net loss narrowed to Rs 697.20 crore in the fourth quarter ended March 31,
Punjab National Bank


New Delhi, Jul 10 (PTI)
 Shares of Punjab National Bank on Friday tumbled nearly 7 per cent after the company said it has reported a fraud of Rs 3,688.58 crore in the non-performing asset account of Dewan Housing Finance (DHFL) to the RBI.

The stock plunged 6.73 per cent to Rs 34.60 on the BSE.

On the NSE, it tanked 6.73 per cent to Rs 34.60.

“A fraud of Rs 3,688.58 crore is being reported by bank to the Reserve Bank of India (RBI) in the accounts of the company (DHFL),” PNB said in a stock exchange filing.

The bank has already made provisions amounting to Rs 1,246.58 crore, as per prescribed prudential norms, it added.

In November last year, RBI had sent the troubled mortgage lender for bankruptcy proceedings, making it the first financial services player to go to the National Company Law Tribunal for a possible debt resolution.

Source:PTI

Yes Bank sets floor price of Rs 12/share for FPO; minimum bid lot 1,000 shares

0
Shares of Yes Bank on Thursday zoomed 20 per cent after the company reported a net profit of Rs 2,629 crore for the March quarter.
Yes Bank

New Delhi, Jul 10 (PTI) Private sector lender Yes Bank on Friday said it has set a floor price of Rs 12 per share to raise up to Rs 15,000 crore through follow-on public offer (FPO), which opens on July 15.

The capital raising committee (CRC) of the bank’s board at its meeting “has approved floor price of Rs 12 per equity share”, Yes Bank said in a BSE filing.

The cap price for the FPO is Rs 13 per unit.

It has also fixed “a minimum bid lot of 1,000 equity shares and in the multiples of 1,000 equity shares thereafter”.

The lender has announced a discount of Re 1 per equity share for the eligible employees of the bank bidding in employee reservation portion.

Yes Bank said a meeting of the CRC is scheduled to be held on July 14, 2020 for the purposes of allocation of equity shares to the successful anchor investors pursuant to the offer and for determination of the anchor investor allocation price.

Yes Bank’s FPO offer will open on July 15, 2020 and close on July 17, 2020.

Earlier this week Yes Bank had received approval from the CRC to raise funds through the offering.

The bank had filed a red herring prospectus dated July 7, 2020 (RHP), in connection with the offer, with the Registrar of Companies, Maharashtra at Mumbai. Yes bank’s offer size of the FPO is Rs 15,000 crore, by way of a fresh issue of equity shares, including an employee reservation portion of up to Rs 200 crore.

The executive committee of State Bank of India’s central board has given approval for a maximum investment of up to Rs 1,760 crore in the FPO of Yes Bank, an SBI statement said on Wednesday.

On March 13, the government had approved a bailout plan for Yes Bank. Under the plan, Yes Bank had received around Rs 10,000 crore from eight financial institutions, including Rs 6,050 crore from SBI.

Shares of Yes Bank were trading over 5 per cent lower at Rs 25.30 apiece on the BSE.

Source:PTI

Startup Ideas to take away from Netflix

0
How tough it has been for all of us amidst this lockdown. !Here are some of the Netflix recommendations to keep you busy this week!
Netflix recommendations to keep you busy this week!

Well, we all are aware that how tough it has been for all of us amidst this lockdown, when some of us were living alone or apart from their families and the mental anxiety it has caused to all of us, phew!

Here are some of the Netflix recommendations to keep you busy this week!

  1. BLACK MIRROR
IMG_256

Image source: nme.com

This series includes five seasons (22 episodes in total) and is way ahead of the technical world we are currently living in. Each episode has a different story to teach ranging from the world of virtual games to artificial intelligence’s taking over our lives!

Value addition: If you are someone looking for new techie ideas which are surely gonna make millions in the next 20 years, then this one is for you!

  1. GIRLBOSS
IMG_256

Image source: tvseriesfinale.com

This series only comprises one season with 10 episodes starting when a girl named “Sophia” gets fired from her sales job from a shoe store and nearly becomes homeless when she finds a way to earn money by opening a store on e-bay and earns millions from it!

Value Addition: if you are in your early twenties and still haven’t figure out your life or want to do something different from a 9 to 5 job, then this one is for you!

  1. SUITS
IMG_256

Image source: usanetwork.com

Suits are set in a fictional law firm in New York City, where a college dropout despite being ever studied law joins as a legal associate with a firm. It demonstrates how without even a degree how far you can go when someone believes in you!

Value Addition: If you have always wanted to do something different from what you have always been doing or didn’t have enough courage, then this is a must-watch for you all!

  1. INSIDE BILL’S BRAIN
IMG_256

Image source: usa.newonnetflix.info

This three-part documentary Netflix series about bill gates tells us about his journey so far and gives a glimpse of who truly he is as a person.

Value Addition: it is one of those rarest moments when we get to know something so personal about a big personality, where he shares his ideas and what makes him different from others

  1. DIRTY MONEY
IMG_256

Image source: netflix.com

Dirty money tells us about the biggest corporate frauds and lies which you may have heard about

Value Addition: every episode of this very binding and catching starting from frauds by moneylenders, car manufacturers and how can you save yourself!

If you like this article, then don’t forget to give it a thumbs up and keep supporting OoWER.

Sensex down over 173 pts in early trade; financial stocks drag

0
Sensex gave up all the day's gains to end 63 points lower as spiking number of COVID-19 cases in the country created an uncertainty about lockdown.
Sensex and Nifty, COVID-19.


Mumbai, Jul 10 (PTI)
 Equity benchmark Sensex dropped over 173 points in early trade on Friday, dragged by losses in financial stocks amid negative cues from global markets.

After touching a low of 36,526.22 at open, the 30-share BSE Sensex was trading 173.77 points, or 0.47 per cent, lower at 36,563.92. The NSE Nifty was down 39.05 points, or 0.36 per cent, at 10,774.40.

IndusInd Bank was the top loser in the Sensex pack, shedding around 2 per cent, followed by Tech Mahindra, HDFC, Titan, Axis Bank, M&M, HDFC Bank and ICICI Bank.

On the other hand, Sun Pharma, Bharti Airtel, SBI, Reliance Industries, HUL, Bajaj Auto and Infosys were among the gainers.

In the previous session, the BSE barometer ended 408.68 points, or 1.12 per cent, higher at 36,737.69, and the Nifty jumped 107.70 points, or 1.01 per cent, to finish at 10,813.45.

Foreign institutional investors were net buyers in the capital market on Thursday, purchasing equities worth Rs 212.77 crore, provisional exchange data showed.

According to traders, domestic benchmarks followed negative trend in global equities as concerns over fresh spike in the number of COVID-19 cases and its impact on economic recovery weighed on investor sentiment.

The number of cases around the world linked to the disease has crossed 1.22 crore and the death toll has topped 5.54 lakh.

In India, the number of infections spiked to 7.93 lakh and the death toll rose to 21,604.

Bourses in Shanghai, Hong Kong, Tokyo and Seoul were trading with significant losses.

US stocks too ended on a tepid note in overnight session.

Meanwhile, international oil benchmark Brent crude futures fell 0.59 per cent to USD 42.10 per barrel.

Source:PTI

TCS quarterly net profit falls nearly 14 pc to Rs 7,008 cr

0
largest software services

Mumbai, Jul 9 (PTI) The country’s largest software services firm Tata Consultancy Services (TCS) on Thursday reported a 13.8 per cent decline in consolidated net profit at Rs 7,008 crore in the three months ended June.

It had a consolidated net profit of Rs 8,131 crore in the year-ago period, according to a regulatory filing.

Revenue of the company rose marginally in the first quarter of the current fiscal to Rs 38,322 crore. In the year-ago period, the same stood at Rs 38,172 crore.

Globally, businesses have been impacted by the COVID-19 pandemic. While Indian IT firms had seen some impact in March, this is the first full quarter factoring in the impact of disruption and lockdowns in various parts of the world, including India.

“The revenue impact of the pandemic played out broadly along the lines we had anticipated at the start of the quarter. It affected all verticals, with the exception of Life Sciences and Healthcare, with varying levels of impact,” TCS CEO and MD Rajesh Gopinathan said.

He said the company believes the impact has “bottomed out” and that TCS should now start tracing its path to growth.

After an initial period of disruption, customers have now stabilised their operations, and the company is seeing many customers focus on front-end transformation, resulting in significant traction for its products and services, he noted.

“The other big investment themes are around driving operational resilience, adaptability and optimisation. We signed several large core transformation programs encompassing operations, applications, cloud and cyber security,” he said.

The company said despite the continued uncertainty and weakness in all major economies, it has had very healthy deal closures and a strong pipeline.

At the beginning of the first quarter, TCS had said it expects recovery from the third quarter of FY21.

Source:PTI

Flipkart Group invests Rs 260 cr to pick minority stake in Arvind Fashions arm

0
Walmart-owned Flipkart has appointed Sriram Venkataraman as the Chief Financial Officer for Flipkart Commerce (Flipkart and Myntra) with immediate effect.
Walmart-owned Flipkart

New Delhi, Jul 9 (PTI) Arvind Fashions (AFL) on Thursday said Flipkart Group has invested Rs 260 crore to pick a minority stake in its subsidiary Arvind Youth Brands.

Arvind Youth Brands is Arvind Fashions’ recently-formed subsidiary which will own the Flying Machine brand.

“The Flipkart Group and Arvind Fashions (AFL) strengthened their partnership, through an investment of Rs 260 crore by Flipkart Group to purchase a significant minority stake in… Arvind Youth Brands which will own the Flying Machine brand,” AFL said in a regulatory filing.

Arvind Fashions said Flying Machine has been retailing on the group’s platforms of Flipkart and Myntra for more than six years.

“Through this investment, the Flipkart Group and Arvind Fashions will work collaboratively to identify opportunities and synergies to innovate and develop products with strong value propositions at attractive price points,” the company added.

Kalyan Krishnamurthy, Chief Executive Officer, Flipkart Group, said, “Through this investment, we look forward to partnering with the team at Arvind Youth Brands to continue to grow the market for its portfolio of products and enhance the strong brand equity that has been built over the last few decades.”

The transaction is subject to customary conditions precedent. Metta Capital Advisors acted as the financial advisors to AFL for this transaction.

J Suresh, Managing Director and Chief Executive Officer of Arvind Fashions, said, “The partnership with the Flipkart Group will help us accelerate our online growth strategy as we focus our efforts on developing an omni-channel retail approach for Arvind Youth Brands and Flying Machine.”

Source: PTI

Modi woos global cos with investment-friendly business environment

0
Modi woos global cos with investment-friendly business environment
Investment, Image by Nattanan Kanchanaprat from Pixabay

New Delhi, Jul 9 (PTI) Wooing global companies, Prime Minister Narendra Modi on Thursday said Asia’s third-largest economy is one of the most open in the world and offers investment friendly, competitive business environment and immense opportunities.

Speaking at the India Global Week 2020, he said green shoots of economic revival are already visible in India that is coming out of coronavirus lockdown.

“India remains one of the most open economies in the world. We are laying a red carpet for all global companies to come and establish their presence in India. Very few countries will offer the kind of opportunities India does today,” he said.

He listed recent reforms in agriculture as well as those in defence and space sectors to seek global capital.

“We are making the economy more productive, investment-friendly and competitive,” he said. “There are many possibilities and opportunities in various sunrise sectors in India.”

Reforms in the agriculture sector provide a very attractive investment opportunity to invest in storage and logistics, he said. “We are opening the doors to investors to come and invest directly.”

Also, reforms have been brought in the small, micro and medium enterprises (MSME) sector, which will complement big industries.

“There are investment opportunities in the defence sector,” he said, referring to opening up of certain parts of defence manufacturing to the private sector.

Also, there are opportunities for private investment in space sector. “This will mean greater access to commercial use of space tech for the benefit of people,” he said.

Modi said the talk of global economic revival after the pandemic is often linked to the revival of the Indian economy.

Indians, he said, have the spirit to achieve what is believed to be impossible. “No wonder that in India we are already seeing green shoots when it comes to economic recovery.”

“When India talks of revival it is a revival with care, revival with compassion, a revival which is sustainable – both for the environment and the economy,” he said. “On the one hand India is fighting a strong battle against the global pandemic. With an increased focus on people’s health, we are equally focussed on the health of the economy.”

History, he said, has shown that India has overcome every challenge, be it social or economic.

During the last six years, India has made great gains in areas such as financial inclusion, housing and infra construction, ease of doing business and bold tax reforms like the GST, he said.

“India is ready to do whatever it can to further global good and prosperity. This is an India that is reforming, performing and transforming,” he said.

The Prime Minister also spoke of his government’s coronavirus relief package comprising free ration, cooking gas and cash to poor.

“In this time of a pandemic we have provided relief to our citizens and undertaken big structural reforms,” he said.

“Our relief package has been smart and targeted to provide the most poor with the most help. Thanks to technology every penny has reached the beneficiaries directly.”

The relief package was named Aatmanirbhar Bharat or self-reliant India. “Aatmanirbhar Bharat is not about being self-contained or being closed to the world. It is about being self-sustaining and self-generating,” he said.

And when the lockdown restrictions were eased, the government launched one of the world’s largest public works programmes to provide employment to millions of workers. “This will not only re-energise the rural economy but also help in the creation of a durable infrastructure in rural areas,” he said.

The pandemic has once again shown that India’s pharma industry is an asset not just for India but for the entire world, he said adding it has played a leading role in reducing the cost of medicines, especially for developing countries.

Source:PTI

Recent Posts

Most Popular

Private sector lender, Axis Bank on Tuesday reported a loss of Rs 1387.78 crore for the quarter ended March 2020 on higher provisioning cost.

Top 5 pvt banks stare at NPAs doubling to 5% in FY21

Mumbai, Jul 10 (PTI) Top five private sector banks may see their slippages double to 5 per cent this fiscal due to the...
Online restaurant guide and food ordering platform Zomato said it is going to layoff around 13 per cent of its workforce on account of COVID-19 pandemic.

Zomato FY20 revenue jumps to Rs 2,960 cr

New Delhi, July 10 (PTI) Online food ordering platform Zomato on Friday said its revenue in the last financial year jumped over two...

SAIL net profit rises multi-fold to Rs 2,647 cr in Mar quarter

New Delhi Jul 10 (PTI) State-owned SAIL on Friday said its consolidated net profit jumped multi-fold to Rs 2,647.52 crore during the quarter...
State-owned Punjab National Bank (PNB) has said its standalone net loss narrowed to Rs 697.20 crore in the fourth quarter ended March 31,

Punjab National Bank shares tank nearly 7 pc

New Delhi, Jul 10 (PTI) Shares of Punjab National Bank on Friday tumbled nearly 7 per cent after the company said it has...
Shares of Yes Bank on Thursday zoomed 20 per cent after the company reported a net profit of Rs 2,629 crore for the March quarter.

Yes Bank sets floor price of Rs 12/share for FPO; minimum bid lot 1,000...

New Delhi, Jul 10 (PTI) Private sector lender Yes Bank on Friday said it has set a floor price of Rs 12 per...

OoWER

800FansLike
41FollowersFollow
Skip to toolbar