Consumption sector stocks offer some characteristic intrinsic values in real terms because they have the biggest exposure in rural, urban and semi-urban India. Consumption sector stocks become the best investment options for long term wealth creation.
The Covid induced lockdown disrupted supply for the entire consumption sector in India. Though the disruption for staples was limited for a month, discretionary and ‘out of home’ consumption products supply remained interrupted for at least a quarter.
Moreover, demand conditions for discretionary and out of home consumption was also dismal for H1FY21. With the lockdown completely ending, we believe there will be huge pent up demand for discretionary categories (skincare, cosmetics) within FMCG in H2FY21.
Also Read: Tata steel share price takes an exciting take-off attracting investors
The consumer durable sector is expected to witness a surge in volumes with pent up demand for washing machines, dishwashing categories. Further, almost three to six months delay in repainting activity would lead to pent up sales for paint companies. Moreover, government stimulus and lower interest rate is also resulting in an improvement in demand conditionsfor many products. Trade analysts believe lower interest rates would lead to an improvement in demand for residential houses, subsequently leading to an increase in related consumables. moneyinvestors.in/consumption-sector-stocks/
Consumption sector stocks offer some characteristic intrinsic values in real terms because they have the biggest exposure in rural, urban and semi-urban India. Consumption sector stocks become the best investment options for long term wealth creation.
The Covid induced lockdown disrupted supply for the entire consumption sector in India. Though the disturbance for staples was restricted for a month, discretionary and ‘out of home’ consumption products supply remained severely affected for at least a three months.
Apart from this, the situations for the demand of discretionary and out of home consumption was also not okay for H1FY21. With the lockdown completely ending, we believe there will be huge pent up demand for discretionary categories (skincare, cosmetics) within FMCG in H2FY21.
The consumer durable sector is expected to witness a surge in volumes with pent up demand for washing machines, dishwashing categories. Moreover, almost half a year delay in repainting activities would result in boosting sales for paint companies. In addition, government encouragement and less interest rate are also responsible for an improvement in demand conditions for many products. Trade analysts believe lower interest rates would lead to an improvement in demand for residential houses, subsequently leading to an increase in related consumables.
One of the reasons for a robust demand situations in October is the festive season discounts and offers. Further, trade analysts also believe demand for wedding related products would also surge given halt on wedding-related functions in H1 would lead to pent up demand for such products.
Technically, analysts recommended one of the leading consumption sector stocks – Hindustan Unilever.
Hindustan Unilever (HINLEV):
Base formation at rising demand line, 52 weeks of its share price movement indicates fresh entry opportunity along with a favourable risk-reward.
o Consumption sector stocks, after the sharp up move in March-April, have witnessed a healthy base formation in the last six months at the long term support area and are expected to resume their fresh up move.
o The share price of Hindustan Unilever has formed a higher base at the long term demand line joining major lows since October 2018 and the rising 52-week EMA (currently at Rs 2094), thus offering a fresh entry opportunity with a favourable risk-reward set-up
o During the current week’s trade, the stock has generated a breakout above the falling supply line joining highs of April (Rs 2614) and July (Rs 2350) signalling the current consolidation is approaching maturity and resumption of the fresh up move
o The stock has taken nearly 28 weeks to resume 80% of the previous four week’s up move (Rs 1758-2614). A slower retracement highlights a robust price structure and higher base formation
o Trade analysts expect the stock to resume its primary uptrend and head towards Rs 2490 as it is the 80% retracement of the entire previous decline of AprilMay (2614-1902) around Rs 2490
HUL reported a healthy set of numbers with 16.1% sales growth aided by consolidation of acquired brands (Horlicks, Boost, VWASH). On a like to like basis, growth has been 3% supported by 1% volume growth. The recovery in the business was led by complete normalisation of supply chain & strong demand in health, hygiene & nutrition space. The health, hygiene & nutrition products that constitute 80% of sales witnessed growth of 10% whereas discretionary & out of home consumption products, which constitute 20% of sales saw a decline of 25%
• With the merger of nutrition brands (Horlicks, Boost), trade analysts see the possibility of margin improvement by the way of controlling common cost & bringing synergistic benefits. Moreover, the company would be able to grow these brands at a faster pace given large distribution network & robust cash flows for the brand-building exercise
• The effect of lockdown induced due to corona was a disruption of supply for more than a month. However, some of the ‘at home’ consumption categories got the boost with additional demand for tea, coffee, ketchup & soups business. Moreover, with a sharp increase in tea prices, the company is looking to gain market share from unorganised/regional tea producers. It may be noted that the unorganised tea market makes up almost 50% of sales.
• Trade analysts believe the company would be able to able to witness a sustainable revenue & earnings growth backed consolidation of the acquired business. trade analysts remain positive on the stock from a long term perspective
In a blink of an eye, COVID-19 changed every facet of our ordinary life; from going to school, meeting with friends and family, and having fun. No one could have thought anything like COVID-19 could fall suddenly on the human race and, for that, got a little precaution.
The disease not only has taken so many lives so far but changed how we lived. Can you remember how you were living before it? The sad part is we would never go back to the same routines. In the beginning, all the hit countries went into silence. Then came technology to save us from pure isolation.
You also might be among those who adapted the new condition to get together with relatives and friends. In the meantime, there were those people who benefited from Live Streaming. A teacher started to broadcast his classes online, and then musicians started live concerts, then conferences, games, meetings, and even funerals went online.
The live stream, which was around before the pandemic, took over our daily lives while still in shock. Schools, colleges, and universities started their online classes and made halted education to survive. This seems to continue for the new semester as well since the COVID-19 still takes lives.
The way we get also entertained today depends on live streams more than any other time in human history, a point in time that has no return, maybe only on Hollywood movies. moneyinvestors.in/live-stream/
In a blink of an eye, COVID-19 changed every facet of our ordinary life; from going to school, meeting with friends and family, and having fun. No one could have thought anything like COVID-19 could fall suddenly on the human race and, for that, got a little precaution.
The disease not only has taken so many lives so far but changed how we lived. Can you remember how you were living before it? The sad part is we would never go back to the same routines. In the beginning, all the hit countries went into silence. Then came technology to save us from pure isolation.
You also might be among those who adapted the new condition to get together with relatives and friends. In the meantime, there were those people who benefited from Live Streaming. A teacher started to broadcast his classes online, and then musicians started live concerts, then conferences, games, meetings, and even funerals went online.
The live stream, which was around before the pandemic, took over our daily lives while still in shock. Schools, colleges, and universities started their online classes and made halted education to survive. This seems to continue for the new semester as well since the COVID-19 still takes lives.
The way we get also entertained today depends on live streams more than any other time in human history, a point in time that has no return, maybe only on Hollywood movies. Musicians started their concerts worldwide on a new stage, Live Streams, where people can sit next to each other from different locations like India, the USA, UK, Australia, Japan, and Iran.
Truth is Live Stream service providers worldwide witnessed the demand for their services at least tripled after the COVID-19 break-out. Education and businesses comprise a good part of this demand. They have found their costs reduced and have more control over the content and processes, while they have realized how easier time management got.
It can be predicted that live streaming benefits for schools and businesses would not let them return entirely to the earlier methods. Thus, live streaming has become an integral part of education, entertainment, and business environment.
But are all live stream service providers the same? Of course not. Live Stream services differ from each other significantly. The main differences are the number of concurrent supported users, stream quality, cost, and online support.
Among the young service providers in this field, ArvanCloud has supported almost 150 thousand concurrent users at live events on live stream service with the least possible delay during COVID-19. Adding to this is its economical pricing packages and ArvanCloud Live Stream quality, which position it on the top three providers that recently entered the Indian market.
ArvanCloud explains that its Live Stream service stands on the edge of technology, and for that, it can provide such a quality Live Stream. ArvanCloud developers claim: “Live Stream is one of the best services offered since we have better infrastructure and better codes. We constantly update and improve our codes, while many other providers have developed their codes years ago and have not improved it.”
But what makes Live Stream of ArvanCloud different? The company’s Live Streaming Platform allows the video content creators and distributors to transform their video or live stream content to multiple qualities and formats. Users can also store and publish their live stream in an unlimited cloud video hosting without worrying about infrastructural issues.
ArvanCloud Live Video Streaming platform is integrated over the Content Delivery Network. CDN Live Streaming helps the video content be delivered from the nearest geolocation to each user, enabling them to watch videos without delays and with the best possible speed.
Better internet access worldwide and better internet speed have also helped the surge in the live streams. Besides, we would manage our times with live streams, and put some of our money in the pocket and save more. Live Streams also allow you to save the movies, concerts, classes, etc. and watch it repeatedly.
One can say that Live Streams will not fade, it might lose some weight after COVID-19, but it will not vanish. It is an integral part of our lives. So we should be thankful to some extent to the condition that occurred to us and made us all enjoy the Live Stream at the comfort of our homes.
Tata steel share price has recently started showing its familiar uptrend attracting a good number of buyers.
Tata steel news
The Indian stock market continues its bull run with Sensex up 0.88 percent to 40901.72, and the Nifty moving up 97.20 points or 0.82 percent reaching 11994.
One of the leading sectors has been the Metals - steel, aluminium or Zinc. It moved up 2%. The key performers have been Tata Steel, Jindal Steel, Hindustan Zinc, Hindalco Industries, MOIL, JSW Steel, Ratnamani Metals and SAIL. The metal group as of late has experienced some solidification and stayed away from the market correction on October 15, 2020. The following day the metal stocks inside this space just flew, particularly the steel stocks.
Traditionally, Tata steel has been on top of all steel industries and as such Tata steel is one of the most favorite shares of investors and brokerage houses. Steel prices have gone up and the demand is going up after the covid induced lockdown which augurs well for the Tata steel share price. A wise decision for long term investment.
Tata steel share price movement
Metal stocks have been in a recovery mode and have shown significant resilience in the current market volatility. Stocks like JSW Steel have managed to retest their new 52-week high despite jittery market conditions, indicating the prevailing positive bias in the metal space. We believe stocks like Tata Steel will resume their uptrend on account of short-covering. moneyinvestors.in/tata-steel-share-price/
Tata steel share price has recently started showing its familiar uptrend attracting a good number of buyers.
Tata steel news
The Indian stock market continues its bull run with Sensex up 0.88 percent to 40901.72, and the Nifty moving up 97.20 points or 0.82 percent reaching 11994.
One of the leading sectors has been the Metals – steel, aluminium or Zinc. It moved up 2%. The key performers have been Tata Steel, Jindal Steel, Hindustan Zinc, Hindalco Industries, MOIL, JSW Steel, Ratnamani Metals and SAIL. The metal group as of late has experienced some solidification and stayed away from the market correction on October 15, 2020. The following day the metal stocks inside this space just flew, particularly the steel stocks.
Traditionally, Tata steel has been on top of all steel industries and as such Tata steel is one of the most favorite shares of investors and brokerage houses. Steel prices have gone up and the demand is going up after the covid induced lockdown which augurs well for the Tata steel share price. A wise decision for long term investment.
Tata steel share price movement
Metal stocks have been in a recovery mode and have shown significant resilience in the current market volatility. Stocks like JSW Steel have managed to retest their new 52-week high despite jittery market conditions, indicating the prevailing positive bias in the metal space. We believe stocks like Tata Steel will resume their uptrend on account of short-covering.
The open interest in the stock declined sharply in June amid short-covering. Since September, the stock has witnessed a downtrend with short additions. These positions have begun to be covered. We now expect the momentum to be seen along with covering of short positions in the coming sessions.
In the options space, the stock has the highest Call option base at the 400 strikes followed by 420 strikes. As the stock was in a consolidation phase, Call writers are active at the 400 strikes. Sustainability above this level may trigger a further up move on the back of short-covering in the Call writer’s position. These positions may shift to higher OTM strikes. At the same time, Put open interest base is strengthening at the 380 and 370 Put, which can act as strong support on downsides
From June to August, Tata steel share price witnessed an impulsive up move towards Rs 445 levels. Since then, it has remained largely range-bound with time and price based correction. This recent decline towards Rs 360 has given another opportunity to go long in the stock for fresh upsides
The stock has seen one of the highest delivery based actions around Rs 340-360 in June. We expect levels around Rs 360 to act as crucial support for the stock in the short-term. With the early signs of the stock moving out of the prevailing range, analysts expect it to continue its upward momentum
Jindal Stainless Steel share price going bullish! Jindal Stainless Steel (JSL), part of the OP Jindal Group, is India’s largest stainless steel producer with a melting capacity of 1.1 million tonnes per annum. Apart from its state-of-the-art manufacturing unit in Odisha, JSL also has a 250000 tonnes per annum (TPA) Ferroalloy plant and a 264 MW captive power plant.
o The Jindal Stainless Steel share price has logged a resolute breakout from two years base formation (Rs 23-53) backed by a faster pace of retracement as stock entirely retraced past seven weeks decline (Rs 53-39) in just single week. Multi-year consolidation breakout supported by a faster pace of retracement, signifies resumption of the primary uptrend, auguring well for next leg of an up move
o Key point to highlight during ongoing up move off March low (Rs 21) is that, the stock has been trading in a upward sloping channel indicating elevated buying demand. In the process stock has closed above 200 weeks EMA for the first time in two years, indicating rejuvenation of up trend
Jindal Stainless Steel share price going bullish! Jindal Stainless Steel (JSL), part of the OP Jindal Group, is India’s largest stainless steel producer with a melting capacity of 1.1 million tonnes per annum. Apart from its state-of-the-art manufacturing unit in Odisha, JSL also has a 250000 tonnes per annum (TPA) Ferroalloy plant and a 264 MW captive power plant.
o The Jindal Stainless Steel share price has logged a resolute breakout from two years base formation (Rs 23-53) backed by a faster pace of retracement as stock entirely retraced past seven weeks decline (Rs 53-39) in just single week. Multi-year consolidation breakout supported by a faster pace of retracement, signifies resumption of the primary uptrend, auguring well for next leg of an up move
o Key point to highlight during ongoing up move off March low (Rs 21) is that, the stock has been trading in a upward sloping channel indicating elevated buying demand. In the process stock has closed above 200 weeks EMA for the first time in two years, indicating rejuvenation of up trend
o The two years consolidation breakout has been backed by highest weekly volume since January 2020, highlighting larger participation.
o On the oscillator front, weekly RSI resolved out of three years resistance of 68, indicating reviving upward momentum
o Therefore, analysts expect Jindal Stainless Steel share price to accelerate ongoing momentum and head towards Rs 64 levels in the coming months as it is the upper band of rising channel placed at Rs 66 coincided with 161.8% external retracement of CY20 decline (Rs 47-21), at Rs 63.
Jindal Stainless Steel share. Its time to enter
JSL has its plant located in Jajpur, Odisha. JSL is strengthening India with the ‘metal of tomorrow’. For our kitchens, we are eager to search for the Jindal stainless steel modular kitchen price. The company is engaged in the business of procuring stainless steel scrap, chrome ore, nickel and other alloy elements from the market and convert them into varied stainless steel products. Company’s business operations are primarily involved in the manufacturing of flat stainless steel products.
JSL has ~25% market share in the overall domestic stainless steel market and its product basket includes slab, hot rolled annealed pickle coil, Cold rolled annealed pickle coil and plates. Around 20% of JSL’s total volume is exported (majorly to Europe and South-east Asia), while the balance 80% of the overall volume caters to the domestic requirements. The company has a healthy logistics infrastructure, which includes in-house railway sliding, along-with close proximity to ports providing strong support to overall operations.
Recently the government has issued an order to levy provisional countervailing duty (CVD) in the range of 22.31% to 24.83% on certain types of flat stainless steel products from Indonesia for a period of four months from October 9, 2020. This step also augurs well for the company.
Facebook is the second most used social networking website in the world. The huge amount of people that use this website every day makes it one of the most popular sites for business purposes. Unfortunately, Facebook has a number of issues that many business owners are not aware of.
Masked faces
One of Facebook issues that many people have is the fact that they may think that there is too much information being posted on the site. There is a limit on how much information can be posted on the site because of a copyright law called the "copyright clause" which states that any person who posts information on the site must do so with their permission. Although this does not necessarily prevent people from posting information on the site, there are still a number of people who try to do so without permission. This is why many of the problems that some businesses encounter when they are using the site are actually due to people posting their personal information, which is not allowed by Facebook's terms and conditions.
Also Read: More than 1,000 companies have boycotted Facebook
Other facebook issues that some businesses face when they are using Facebook is the fact that people post advertisements without their permission. This is one of the biggest causes of Facebook's financial struggles as well. Many businesses post advertisements on the site and then wait to see what happens with them. moneyinvestors.in/facebook-issues/
Facebook is the second most used social networking website in the world. The huge amount of people that use this website every day makes it one of the most popular sites for business purposes. Unfortunately, Facebook has a number of issues that many business owners are not aware of.
Masked faces
One of Facebook issues that many people have is the fact that they may think that there is too much information being posted on the site. There is a limit on how much information can be posted on the site because of a copyright law called the “copyright clause” which states that any person who posts information on the site must do so with their permission. Although this does not necessarily prevent people from posting information on the site, there are still a number of people who try to do so without permission. This is why many of the problems that some businesses encounter when they are using the site are actually due to people posting their personal information, which is not allowed by Facebook’s terms and conditions.
Other facebook issues that some businesses face when they are using Facebook is the fact that people post advertisements without their permission. This is one of the biggest causes of Facebook’s financial struggles as well. Many businesses post advertisements on the site and then wait to see what happens with them. One of the worst things that you could have happened would be that they get pulled off of the site. However, there are some advertisers that are willing to put their advertisements on the site if they get the proper amount of exposure.
Another issue that many companies have with Facebook is the fact that their business pages are not always properly maintained. Business owners have become quite frustrated by the fact that they may only post one status update on their page every single day. Many of the other posts that they have made may have been lost, deleted, or moved to another section of the site. Many of these companies have spent a lot of money just trying to figure out how to make their pages look good.
Another issue that many businesses find with Facebook is that they cannot afford to pay for advertising costs every month. They pay a monthly fee to Facebook for their advertising privileges, but when the advertisements that are placed on their pages are not effective, they are required to pay the amount for the entire month. This has caused many businesses to cut back on their advertising budgets, which may even lead to losing the accounts of those that they had paid up front for advertising services.
If you want to be successful with your business using Facebook, it is important that you are able to have the right strategies in place. for getting your brand out there in the online marketplace. You need to make sure that all of the different aspects of your business are set up correctly so that the results that you achieve are the ones that you expect to have.
The News. October 9, 2020. Shaktikanta Das, Reserve Bank of India (RBI) Governor announced some good news for Can Fin Homes like housing finance companies:
The Monetary Policy Committee (MPC) voted unanimously to keep the policy repo rate unchanged at 4 per cent.The MPC will continue with the accommodative stance of monetary policy as long as necessary at least through the current financial year and next year.The Marginal Standing Facility Rate and bank rate remains unchanged at 4.2 per cent and the reverse repo rate stands unchanged at 3.35 per cent.
After the RBI declared the monetary policy, shares of nearly all housing finance companies - LIC HFL, GIC HF, Repco Home, Can Fin Homes, M&M Finance, IndiaBulls HF - started to surge. It seems the decision to maintain the repo rate and reverse repo rate was warmly welcomed by the sector. Most developers and consultants feel that the RBI's move to rationalise risk weightage on home loans and link housing loan risks to loan to value is expected to make more credit available to borrowers, bring down the cost of funds to buyers and improve demand for homes.
Also Read: Government investigations into Jet Airways could derail revival plan
Case Study. Can Fin Homes: A sharp rebound from the lower band of the rising channel offers fresh entry opportunity for investors.
An epic war between two of the world's biggest business houses seems to be shaping up. It is for getting hold of the retail space in some of the world's biggest consumer market, that is India.
In August 2019, the U.S. firm, the e-commerce online retail giant Amazon.com Inc., bought a 49 per cent stake in Kishore Biyani’s retail conglomerate Future Coupons, a promoter group entity of Future Group’s retail business, which owns 7.3 per cent of Future Retail for about Rs 15,000 million. This deal provided Amazon with a 3.58% stake in Future Retail, contractual rights like a right of first refusal, a non-compete-like pact, and to purchase more stake in Future Retail.
In August 2020, Mukesh Ambani’s Reliance decided to buy the retail and some other businesses of Future Group. The Future Group’s sale of its retail and wholesale businesses to Reliance Industries Ltd (RIL) triggered a dispute.
Also Read: Reliance Industries falls 7% post Q2 results
In October 2020, circumstances became such that Amazon had to spend some time, money and valuable resources in appointing law firms to launch some legal proceedings. Amazon has served a legal notice to Future Coupons over the deal with Reliance Industries. It will initiate arbitration proceedings against the Future Group and the arbitration will be outside India, most likely before the Singapore International Arbitration Centre. moneyinvestors.in/epic-war/
The latest TATA-Walmart deal. In May 2018, the global retail giant Walmart purchased a 66% stake in Flipkart for $16 billion. Till date, it has been the country’s biggest-ever deal in the retail space. But, this may be overtaken latest by January 2021 by a new ambitious deal coming up between TATAs and Walmart.
One of the biggest news that has come up in recent times is: "Walmart is considering a $25 billion investment into Tata Group's Super App."
The TATAs proposed super-app may be launched as a joint venture, combining the Tata Group’s entire retail product franchise and Flipkart’s offerings from Walmart.
Waiting to be lifted
Super Apps from Tata group can definitely provide a comprehensive solution for B2B2C. The Tatas seem to be working with advisers to bring in global tech companies, including investors, for the digital entity. Goldman Sachs may have been asked as the investment bank for this deal.
Tatas, the pioneer of the Indian tech industry, stayed inactive for a while but now the group is catching the super app fever. It may have to reset its supply chain network. Given how foreign capital has built a strong infra for online/e-commerce, this is the most promising time for super apps to mushroom.
Amazon and Reliance Jio, which is planning a similar offering with Facebook are set to have a new competitor in terms of variety and economies of scale. moneyinvestors.in/tata-walmart/
Amarin Corp - a pharmaceutical company developing and commercializing therapeutics to improve cardiovascular health - recently has been jolted by a court's ruling. Amarin Corp was founded in 1993 and is headquartered in Dublin, Ireland for the purpose of taxes. Traded at NASDAQ as AMRN.
Benchmark indices ended almost flat after a volatile session on Tuesday. As per provisional closing data, the S&P BSE Sensex fell 8.41 points at 37,973.63. The Nifty 50 index lost 5.15 points at 11,222.25.
IndicesDateChange% ChangeNikkei30-09-2020-82.3-0.35Straits Times30-09-20203.750.15DOW Jones29-09-2020-131.4-0.48Shanghai29-09-20206.830.21Hang Seng29-09-202000Nasdaq29-09-2020-32.25-0.29DAX29-09-2020-45.05-0.35CAC 4029-09-2020-11.2-0.23FTSE29-09-2020-30.43-0.51World Indices today
There were more sellers than buyers. On the BSE, 1178 shares rose and 1436 shares fell.
In corona age, pharma companies have more work to do
The rating agency, Icra, after market hours on Monday, revised its forecast for contraction in GDP for FY21 to -11% from -9.5% as fresh Covid-19 infections remaining elevated at the end of the second quarter. The agency, however, retained its earlier forecast of a 12.4% contraction in GDP in the second quarter.
Cadila Healthcare has been seeing the strongest rally in recent times which clearly indicates a structural transformation. Time to enter!
Stable earnings visibility, least stressed balance sheets, healthy free cash flows and ability to deliver products at the time of crisis are some key attributes of Indian pharma.
Over the last few quarters, most players are recalibrating CAPEX and R&D spend in order to optimise capital utilisation. The current situation, underpinned by Covid-19 pandemic and its negative impact on most sectors, further strengthens the argument for investment in pharma.
While the Q1 performances of most pharma companies have been skewed, H2 should reflect the normalised trend.
Technically, the Pharma index has registered a structural turnaround on long term charts. At the current juncture, Cadila Healthcare and Caplin Point Laboratories seem to be well placed in terms of a favourable risk-reward set-up from a medium-term perspective.
The pharma sector has been relatively outperforming over the past couple of months after witnessing a structural turnaround off March 2020 lows, signalling a reversal of five-year-long downtrend.
o In the pharma space, Cadila Healthcare has been relatively underperforming. However, currently, it has been seeing a faster pace of retracement as it retraced past five week’s decline (Rs 412-358) in just a single week, signalling an acceleration of upward momentum, auguring well for the next leg of up. moneyinvestors.in/cadila-healthcare/
LAUNCH INVITATION: “FICCI for Start-ups”Date: October 1, 2020Time: 3:00 PM to 4:00 PM (IST)
We invite you to the launch of “FICCI for Start-ups” initiative of the Federation of Indian Chambers of Commerce and Industry (FICCI). Under this initiative, FICCI will provide a wide array of services and benefits to the Indian start-ups. The prime aim of the initiative is to provide a voice to the startups in India.
A comprehensive benefits package has been developed by FICCI under the said initiative which includes connecting start-ups to FICCI corporate members, mentorship by industry experts, direct connect to the Indian Angel Network, access to soon to be set up FICCI-IAN social venture fund, access to FICCI innovation and start-up programs, exhibitions, delegations, conferences at special costs, connect to the global investor community, policy advocacy with the government on behalf of start-up members among others.
In July 2020, FICCI had conducted a nationwide survey on the 'Impact of COVID-19 on Indian Start-ups' jointly with the Indian Angel Network (IAN), 250 start-ups, 61 incubators and investors. The covid has had a huge impact on the Indian businesses, especially for the SMEs and Start-ups. moneyinvestors.in/ficci/
The bond market also drives India’s economy which is otherwise slowing, inflation is sputtering and the central bank is cutting interest rates. But the cost of long-term money is refusing to budge. The reason, in a single word: upcoming elections. Polls are scheduled in states. Prime Minister Narendra Modi probably would have liked to make NDA's reelection endorsement with less distress in the farm economy and a better jobs track record. If he hadn’t scored an own goal by banning 86 per cent of the country’s cash overnight, he might even have succeeded. Team Modi will end the fiscal year on March 31 with a huge deficit of roughly $190 billion, a pre-poll bump that doesn’t appear to have helped in pump-priming the economy.
The Gross Domestic Product (GDP) in India grew 0.70 per cent in the first quarter of 2020 over the previous quarter. It comes as little surprise that the country recorded its slowest GDP growth rate recently. More weakness is expected in the coming three months ending December 2020. That can only mean more disinflation and deeper interest-rate cuts. Why, then, is the 10-year Indian government bond yield doing very well, more than double the expected inflation rate for the year?
For both NBFC and corporate categories of bonds, the ranges grew by nearly 30-40 basis points between February 2020 and April 2020. moneyinvestors.in/bond-market/
Computer Age Management Services Limited (CAMS) is India’s largest registrar and transfer agent of Mutual Funds with an aggregate market share of approximately 70%, based on Mutual Fund Average Assets Under Management (AAUM) managed by its clients and serviced by it during July 2020, according to the CRISIL Report.
Largest infrastructure and services provider in a large and growing Mutual Funds market.The ten-year CAGR of QAAUM (Quarterly Average AUM) of Mutual Funds between March 2010 and March 2020 was 13.4% according to the CRISIL Report, while the ten-year CAGR of QAAUM of Mutual Funds serviced by CAMS over the same period was 15.8%.
Integrated business model and long-standing client relationships in our Mutual Funds services businessIts pan-India physical network comprises of 271 service centres spread over 25 States and 5 Union Territories as of June 30, 2020. Its Mutual Fund clients include 4 of the 5 largest Mutual Funds as well as 9 of the 15 largest Mutual Funds based on AAUM during July 2020.
Established track record of delivering robust financial resultsIts total income for the three months ended June 30, 2020, and the Financial Year 2020 was ₹1,634.61 million and ₹7,213.43 million, respectively. Its profit after tax for the three months ended June 30, 2020, and the Financial Year 2020 was ₹408.25 million and ₹1,734.56 million, respectively.
With war clouds hovering around several Nations in the world, will it be ever possible for us to see a One World One community?
One basic need of the humans - Energy - seems to have the potential to bring and connect people of the world to come together cutting across geographical barriers.
September 8, 2020. The International Solar Alliance (ISA) organised a virtual World Solar Technology Summit.
India's Prime Minister Narendra Modi was earlier expected to deliver the inaugural address but could not do so because of some other engagements. His message was read out by the New and Renewable Energy Minister R K Singh.
The PM Modi expressed his visions on humanity and the global use of clean energy supplies across nations. He mentioned the idea of 'One World, One Sun, One Grid'. The Prime Minister also mentioned that ISA is part of this project which can bring transformational benefits for the entire humanity.
The PM Modi made it clear that his government wants to take solar energy to all villages of India and replace fossil fuels with this clean source in agriculture.
India's existing clean energy capacity is 134 GW. It will be scaled up to 220 GW by 2022.
The PM Modi exuded confidence that India will reduce energy tariffs further through technological advancements. A further reduction in the cost will provide a major boost to the use and expansion of renewable energy. moneyinvestors.in/solar/
In the current market scenario, we have seen stocks from underperforming sectors witnessing sharp upsides while performing spaces like technology took a breather. We believe that after a round of profit booking, technology stocks will resume their uptrend. Infosys has been hovering around Rs 900 levels for a while. Now, it is likely to witness upsides on the back of fresh formation of long positions
Buy Infosys in range of Rs 915-935, Target: Rs 1090; Stop Loss: Rs 840; Time frame: Three months
Last closing price - Rs 925.00Beta - 0.6512M Avg Price - Rs 753.03M Avg Roll (%) - 87.0%HV 30 Day (% Annualised) - 25.40
Price vs. open interest pattern. Fresh accumulation is likely to take stock higher
The open interest in Infosys has been gradually declining in the last couple of weeks as the stock surpassed its major resistance of Rs 840 in July lost its quarterly results. Since then, the short covering has propelled the stock towards Rs 975. The stock started the September series with almost six month’s low open interest. We believe it will attract fresh long additions from here onwards and is well placed to move above Rs 1000
In the options space, the stock had the highest Put OI base at the 900 strikes in August as well September series. Despite continued strength in the rupee, the stock was able to hold these levels amid profit booking and has started moving up. moneyinvestors.in/buy-infosys/
IPO of Happiest Minds Technologies Limited is now open for subscription. Minimum order quantity is 90 shares which is available at a price band of Rs.165 - Rs.166 per share.
Happiest Minds Technologies (HMT)
HMT focuses on delivering a seamless digital experience to its customers. The company’s offerings include, among others, digital business, product engineering, infrastructure management and security services. The company’s capabilities include giving end-to-end solution in the digital space. HMT has repeat business from its customer base, which includes more than 35 Fortune 2000/Forbes 200/billion dollar corporations.
The company’s broad range of offerings helps to up-sell while multiple business units (BUs) help it to cross-sell to existing customers as well as to acquire new customers. Its average revenue per customer has increased from US$471,472 in FY18 to US$501,562 in FY19 to US$614,675 in FY20. The company’s total income & EBITDA has grown at a CAGR of 20.8% and 285.3%, respectively between FY18 and FY20.
Strong brand in digital IT services
The global enterprise digital spend is expected to be ~US$691 billion in 2019 and is expected to grow to US$2,083 billion by 2025 at a CAGR of 20.19%. In FY20, 96.9% of revenues came from digital services. This is one of the highest among Indian IT companies. Broadly, the company’s target market includes business services, IT services, infrastructure-as-a-service, applications, application development and deployment. moneyinvestors.in/make-money/
Renewable energy stocks have teased investors with their promise for years. On the one hand, it's easy to dream on the sector's growth potential given the need to transition the global economy away from its current fossil fuel-based approach to a more sustainable one. According to one estimate, the world's developed economies need to invest a staggering $10 trillion in the coming years to make the switch. However, despite all the investments in the sector, most clean energy stocks have significantly underperformed the market over the years.
Two factors have driven this underperformance: intense competition and weak financial profiles. With so many companies focused on doing the same thing, the industry has fought against itself for growth opportunities, which has hurt investment returns. Meanwhile, most clean energy companies focused on growing as fast as they could despite the lacklustre returns. As a result, many stretched themselves too thin, putting pressure on their balance sheets and stock prices and burning investors in the process.
A small group of renewable energy companies, however, have thrived despite the sector's issues. That's allowed them to consistently create value for their investors over the years.
One of the defining characteristics of these outperformers is that they aim to grow the value of their company, not just its size. Thus, those who want to invest in renewable energy stocks should seek out companies focused on this pursuit. moneyinvestors.in/renewable-money/
While the fliers have not yet resumed flying, it is now being widely recognised that the global aviation industry is going through the toughest-ever phase in its 100-year old history. The uncertainty of survival is bound to cause unprecedented turmoil and has fully paralysed the sector.
Rating agency Crisil reports that the unprecedented plunge in demand for air travel will badly impact the financials of airlines. It reports that the aviation industry will lose revenue to the tune of Rs 240,000–250,000 million. Airlines will see more than 70% of the losses, and airport operators will lose Rs 50,000 million and airport retailers, including retail, food and beverages and duty-free outlets will lose Rs 17,000 million.
In other words, the general public could save up to Rs 240,000–250,000 million by not availing air services. Things such as food and beverages and duty-free items and even flying are after all dispensable for fliers.
Not availing air services also causes less fuel burn and a cleaner environment.
The fear of corona has driven away the fliers. In June 2019, low-cost airline Spicejet had 94% occupancy, it is 68% in June 2020. At this level, the airline can not break even. It means not operating will be more profitable.
India’s two listed airlines, IndiGo and SpiceJet, lost up to Rs 125 billion across January-March and April-June quarters.
Operations at India's two biggest airports - Delhi and Mumbai - dropped by 67% and 87% in June 2020 respectively. ncairways.co/fliers/
Despite the aviation industry being hit by the outbreak of Covid-19 pandemic, many airlines are preparing to join other airlines in the intercontinental market by December 2020. They seem to be working very hard for the restart of the air services.
The $1.9 trillion money manager, Pacific Investment Management Co. anticipates an economic recovery and that the next market rally will lift the aviation sector - beaten-down the most by the pandemic- as people start to travel again.
Also Read: Covid-19 Spread Sparks Fresh Panic in the Aviation Sector
Mexican Airline Interjet
Interjet is one of Mexico’s three biggest airlines. It operates on more than 50 routes.
As the coronavirus pandemic devastated global air travel, Interjet availed a $150 million capital support in July 2020 to get it through a substantial restructuring in an effort to lessen the effect of the crisis in the airline sector.
August 30, 2020. Interjet is now in a position to increase the number of routes and frequency of its domestic flights beginning from September. It will hopefully boost travel options to Mexico's northern states and popular tourist destinations.
Interjet will have to enforce health and safety measures. It will offer its passengers free rapid COVID-19 tests and N95 masks.
Uganda Airlines
Recently, Uganda Airlines celebrated its first anniversary. The airline had collapsed in 2001 but was relaunched after 18 years. It has four planes at present. ncairways.co/many-airlines/
Today, the global airlines are struggling through a worse crisis since the first commercial service began flying passengers nearly 100 years ago. The Covid-19 pandemic has exerted a long-term and profound impact globally.
Domestic passenger numbers in some markets have slowly started signs of recovery from COVID-19 lockdown lows, especially in Asia.
Chinese airlines recover from such a worse crisis
Chinese airlines hope for local travel boost. The aviation market in China has been the first to rebound from such a worse crisis, and the overall trend of recovery and development appears to be prosperous. Strong potential demand for air-passenger travel if the virus is suppressed.
Air travel in China has mostly returned from its pre-COVID-19 levels, with about 15m seats scheduled in the week to August 30, indicating the pace of the country's economic rebound.
Japan has also resumed normal service. Domestic travel is not subject to the same level of restrictions as cross-border flights, leaving it well-positioned to lead any recovery from this worse crisis.
China, where the disease first emerged in 2019 has reported no new deaths since May 2020. A tentative return of business and tourist travel within its borders can be seen here, even as the virus wreaks havoc elsewhere. Here domestic travel has picked up with the coronavirus outbreak brought largely under control. ncairways.co/worse-crisis/
Russia has been a major partner of India in the defence sector and the cooperation has been steadily growing further. In a few days from now, a multilateral war game is going to be held in the Astrakhan region in southern Russia from September 15 to 26. The participating countries include India's neighbours - China and Pakistan in addition to a number of other member nations of the Shanghai Cooperation Organisation (SCO), an influential regional grouping.
The SCO is viewed as a counter to NATO. It has emerged as one of the largest transregional international organisations. It accounts for nearly 44 per cent of the world population stretching from the Arctic Ocean to the Indian Ocean and from the Pacific Ocean to the Baltic Sea.
Earlier, India had communicated to Russia that it will participate in the said strategic command-post exercise. India had planned to send around 150 Indian Army troops, 45 Indian Air Force personnel and a number of Navy officers for the exercise. In June 2020, a tri-services contingent from India took part at the Victory Day Parade at the iconic Red Square in Moscow to commemorate the 75th anniversary of the Soviet victory over Nazi Germany in the Second World War. A contingent from China had also attended it.
But India has reviewed its earlier decision now. It may not participate in the exercise.
Eight airlines - Bangkok Airways, Nok Air, Thai AirAsia, Thai AirAsiaX, Thai Lion Air, THAI Smile Airways and Thai Vietjet- approached the government and requested it to do something for them so that they could remain afloat in the aviation business for at least one more year.
The government seemed to be worried about the airlines regarding liquidity to maintain the employment of their employees. It appeared to be satisfied with the airlines' endeavours - that the airlines did respond to the government’s request to retain their 20,000+ workers through the COVID crisis, despite the fact that their business is limited by travel restrictions and a near-total ban on foreign tourists.
Also Read: Debt in the Airlines Set to Ruin Industry Prospects
Thai AirAsia chairman Tassapon Bijleveld said that the chief expectations of the airlines from the government have been :
allocation of soft loans,
an extension of the excise tax cut for jet fuel and
reduction of airline operation fees such as parking and landing charges.
Prime Minister Prayut Chan-o-cha has pledged to offer 24 billion baht in soft loans to such airlines by October 2020 during the meeting with the airline representatives.
Such a development further endorses the basic fact that the airline industry is not yet out of its troubles. It still has to plead for tax-payers' money to keep it in business. ncairways.co/eight-airlines/
Cummins: Price breakout from the falling supply line, last three month’s base formations augurs well for next up move
The capital goods space is witnessing fresh momentum after the last three month’s base formation and is expected to witness a catch up with the rest of the market.
Cummins India Ltd., a Mid Cap company, was incorporated in the year 1962. It has a market cap of Rs 12677.74 crores and is operating in Engineering sector. The company, a producer of diesel and natural gas engines, generator sets and their related services operates through two main segments: Engines and Lubes.
In January 2020, its share price fell over 2 per cent. A research house Nomura has downgraded the stock to reduce from neutral and cut target to Rs 570 from Rs 585 per share. Today a consolidation is being witnessed.
o The share price of Cummins India has generated a breakout above the lastthree month’s higher base formation (Rs 311-439). In the process, it has also closed above the falling supply line joining highs since May 2019 (Rs 801) signalling a reversal of the corrective trend and resumption of the fresh up move, thus offers fresh entry opportunity with a favourable risk-reward set up
o Structurally, the stock in the last three months of base formation has constantly been forming higher lows as can be seen in the adjacent chart highlighting the positive price structure. ncairways.co/cummins/
The stock, Britannia Industries (BRIIND), remains a major outperformer within FMCG space and is currently poised to resume its structural uptrend after the four-week breather, thereby offering fresh entry opportunity.
Such a bullish stance on Britannia Industries is anchored on the following observations :
Since March 2020 panic lows of Rs 2100, price rallies are stronger while corrections have remained shallow underscoring strong appetite to own the stock and robust price structure
Over Past four weeks stock retraced is preceding five-week rally (Rs 3305 – 4010) only by 38.2%, signifying elevated buying demand
The share price has consistently garnered buying support at a rising 10-week average in each correction since March 2020.
This rhythm is expected to be maintained and stock to rally higher from current levels
Analysts expect a significant demand zone is now placed ~3570 which is 61.8% retracement of June-July rally, which is expected to be held. ncairways.co/britannia-industries/
EasyJet pilots have been offered alternative contracts. The airline also warns of upcoming cuts.
In Q3 of last year, budget carrier EasyJet served 26.4m fliers and earned £1.76bn as revenue. One year later, the story became entirely different. EasyJet flew just 117,00 passengers and could earn revenue of only £7m as it could not utilise its resources.
The EasyJet (LSE: EZJ) share price has crashed this year. The stock has fallen 65% from its 52-week high of 1,500p witnessed at the end of February.
The coronavirus crisis has hit the airline sector like a storm. Several air carriers were forced to ground their planes as travel restrictions were imposed around the world.
Following the grounding of its fleet, EasyJet had to deal with the nightmare scenario of having no income and persistent expenditures. Additionally, it also has a number of other liabilities.
The dire financial predicament of the discount airline EasyJet has forced the company to consider strange steps for its survival.
EasyJet shall extend its pilots “seasonal” contracts. That is, work for 26 weeks continuously, and do not draw any salary for the rest of the year.
EasyJet has over 2200 pilots. As the global airline companies battle the collapse in the air travel business, EasyJet may terminate a third of its pilot workforce in an attempt to make severe cuts in its expenditures. ncairways.co/easyjet/
India's influence in global affairs has been increasing since it is rising economically and militarily stronger. India is becoming the centre of world major power politics. In such a scenario, it is important to have an overview of India's foreign policy. Understanding India's Foreign Policy from the mouth of an international personality itself - Shri Vishnu Prakash Sir who has served Indian Foreign Service as Ambassador to Canada and South Korea.
He is being interviewed by Shri K.Siddhartha Sir who is a Strategic thinker, International speaker, Author of 43 books and Mentor of 1553 successful civil servants.
Meek and morose is what Raghav Dubey has been all his life but when Sarla Koppikar wallops him on his head and almost kills him, Dubey ji decides to undergo a complete makeover. He shaves off his moustache, sheds his reticence in female company and even learns to play the guitar! His career graph now rockets skywards with his newfound zest and energy enabling him to work wonders at Mumbai's Bonny Bank. The beauteous Avni Singh bowls him over and he is left utterly lovestruck. Even the very charming Paulomi Bose fails to distract him. Dubey ji's bête noire is found dead and our hero is in deep trouble. Will he be able to bounce back again?
Vivek Atray, the Author
Vivek Atray is an Author, Advisor, Motivational Speaker, Formerly of the Indian Administrative Service, IAS and Mentor. He retired voluntarily from the IAS in 2017. He is an ex-under 19 cricketer. He speaks all over India on topics such as Emotional Intelligence, Leadership, People Skills and Behavioural Issues. He has over 20 Lakh (2 million) views on YouTube.
He is the founder of SUVICHAR Think Tank, Professor at Shoolini University, member of the CSR Advisory Board of ACTION AID and a member of the Governor’s Advisory Council for Chandigarh. He is also a founder of the Vibrant Networking Forum and the Chandigarh Literary Society, and Co-Convenor of INTACH Chandigarh. ncairways.in/amazon-books/
Till 2020, the airline industry had merrily seen almost one decade of sustained profitability. Today, the industry is on life-supporting debt. As per the International Air Transport Association (IATA), the total government aid to carriers at present is more than $120 billion- mainly in loans and in wage support, equity, tax deferrals, and cash injections. The total airline debts have bloated from $430 billion worldwide at the end of 2019 to $550 billion today.
Total airline debt situation
The year 2019: five times, The year 2021: 17-18 times airlines' cash flow on average
No business can sustain itself with such a debt liability. The sector will earn mainly for the lenders and will be left with almost nothing for itself. That is why many firms chose to go insolvent instead of being crushed by debt.
Besides, airlines carry huge liabilities. IATA has estimated the value of airline refunds owed for cancelled flights between March and June 2020, at $35 billion. The airlines also have to necessarily bear the fixed costs - roughly 60 billion in the same period. The companies, barring Southwest, neither have any adaptive business models nor adequate credit lines or cash supplies to be prepared for that.
Also Read : The Aviation Dilemma: Embrace Insolvency or Bail Out
IATA has stated the airline debt situation can see a 'lot of failures' in 2020. ncairways.co/debt/
One of the hardest-hit sectors globally during COVID-19 is the education sector. Education institutions, teachers, and students had to bear the brunt of the impact of the pandemic. Online learning seems to be the best bet during these difficult times when many countries have imposed a lockdown.
Prior to COVID-19, a few e-learning platforms such as Byju’s began to be widely used by students to access different courses. As a matter of fact, the online education market was projected to reach $350 billion by 2025 owing to the increasing investments in education technology. However, most of the educational institutions continued with the traditional ways of teaching prior to COVID-19. Subsequently, the usage of virtual classrooms, online learning software, and video conferencing tools began to surge during COVID-19.
COVID-19 has come as an epiphany for all such institutions that didn’t transform digitally with time. Many of them have had to resort to online learning platforms with insufficient training, little preparation, and no planning. The result is poor user experience, problems in communication, and an unconducive atmosphere for sustained growth.
Integration of IT in Education
Integrating IT in education is not only the need of the hour but is also the future of education. There is no industry that hasn’t been disrupted by the advancements in technology, and the time is right for the education industry to leverage the opportunities offered by the latest technologies. ncairways.co/education/
The corona induced measures for lockdowns are now slowly being eased by the governments. Earlier, the coronavirus had forced the world economy to a standstill, the aviation sector saw a painful definite slump in business during the past two months. Now, as the lockdowns are being eased, skies are clearing up, various airlines slowly are adding back their flights and travellers have started arriving at airports.
The airline industry has really been grounded during lockdowns for months after a fall in passenger demand forced American Airlines, United Airlines and others to sever flight schedules. They were among the hardest hit companies as the coronavirus sharply shut down overseas markets and then thrust the world into a pandemic-induced slump.
Air travel had plunged to levels unseen since the early years of the business jetliner days in the 1950s. The industry had to take a $25 billion bailout pack from the U.S. government to survive as it grounded flights and cut staff. When it saw revenues of major airlines being quickly drying up, Warren Buffett’s Berkshire Hathaway unloaded all of its holdings in the major airlines.
Aviation analysts do not foresee passenger traffic to get back to 2019 levels anytime soon after lockdowns. But the airlines look to salvage some lost damages during the key summer travel season
Also Read: Southwest acknowledges Berkshire Hathaway takeover rumours
Last week, American Airlines stated that following month it will run 55% of the U.S. ncairways.co/lockdowns/
In December 2018, in one of the world’s top airport takeovers, the French giant Vinci had bought a 50.01% stake in UK’s second-busiest airport, Gatwick. In 2009, Global Infrastructure Partners (GIP), had bought the whole airport for just £1.5bn.
In 2006, GIP had bought London City airport in London’s Docklands for £750m. Later it sold it to a Canadian-led consortium of pension funds for £2bn, more than 40 times its earnings. By 2019, Gatwick had paid its shareholders £1.5 billion since 2009.
Gatwick Airport
Vinci had then become the world’s second-biggest airport operator. It paid investors, led by GIP, £2.9bn for the stake. At that time, the Brexit warning aided Vinci to get 50.01% stake in for ‘reasonable’ £2.9bn.
Investors generally assumed that airports were a safe bet for predictable cash flow and high returns. Infrastructure was the hot ticket for global investors because it was viewed as a long-term, stable asset class to provide inflation-linked cashflows. Insanely high prices used to be paid in such airport takeovers in the past. Investors competed for anything with predictable cash flow, such assets changed hands for huge sums in the hunt for attractive returns. High networth individuals - bankers, CEOs, executives and politicians - used to regularly meet and celebrate in luxurious hotels of the world to make deals worth trillions.
