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India vaccinates record 75 lakh people today

June 21, 2021 - 8:49pm
India gave out a record 7.5 million vaccine doses on Monday under a federal campaign to inoculate all adults for free after weeks of criticism that a chaotic rollout had worsened a second wave that killed hundreds of thousands. Earlier this month, Prime Minister Narendra Modi said the government would buy 75% of all vaccines from drug makers and distribute them for free to states, which along with private hospitals had earlier been buying shots for people aged 18-45. India's previous record of 4.5 million doses was on April 5, followed by a sharp decline with average daily inoculation falling below 3 million. Experts have said India needs to administer 10 million doses a day to achieve its aim of inoculating 950 million adults by December. So far, India has fully vaccinated fewer than 5% with two doses.Today’s record-breaking vaccination numbers are gladdening. The vaccine remains our strongest weapon to fight COVID… https://t.co/dhphQOzElx— Narendra Modi (@narendramodi) 1624285116000 "If supply remains consistent, we will be on course to innoculate most of our population by the end of the year, D N Patil, a senior health official in the country's richest state of Maharashtra, told Reuters. Maharashtra has a population of more than 125 million. Earlier this month, the government said India could have as many as 10 million doses of COVID-19 vaccines available per day in July and August. Government adviser Vinod Kumar Paul said on Monday that administering 10 million shots per day was not a "set goal". "As the ramping up takes place, speed of implementation should also ramp up and that would lead to a certain number," Paul said in an interview with CNBC-TV18 channel. "There is a demonstration by the system of how much can be done on a given day, at least this is something that should become obvious by the end of the day." The country is using domestically made doses of the AstraZeneca vaccine and Indian company Bharat Biotech's Covaxin. The government is attempting to secure foreign vaccines such as Pfizer's and has waived strict rules to allow quicker imports. INFECTIONS DECLINE Over the last 24 hours, India reported 53,256 new cases, the lowest since March 24. Infections hit a peak of about 400,000 a day in May and deaths soared to around 170,000 in April-May. With an overall case load of 29.9 million, India ranks second-highest globally behind the United States. Since May, widespread vaccine shortages have worsened the divide between urban and rural areas, as many younger city-dwellers turned to private hospitals, paying between $9-$24 a dose. "It marks the beginning of the end of adversities related to COVID-19 in the country," Giridhara Babu, a member of the Indian Council of Medical Research, the country's main health research agency, told Reuters. Experts warn that millions remain vulnerable to infection, particularly in the countryside where two-thirds of the population lives. And a swift reopening of cities could complicate mass immunisation efforts.
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Relief for PNB Housing Finance: SAT allows vote on Carlyle's Rs 4,000-crore infusion

June 21, 2021 - 8:49pm
PNB Housing Finance has got a relief with the Securities Appellate Tribunal allowing the mortgage lender to seek vote from shareholders on the Rs 4000 crore capital deal with the American private equity Carlyle and other investors.The shareholders' meet is scheduled on June 22. Market regulator Securities & Exchange Board of India had last week told PNB Housing not to seek shareholders approval on the deal before carrying out a valuation on its business by an independent agency. SAT, however, ordered PNB Housing not to declare the voting results till further notice. The Tribunal, in its interim order on Monday, also directed the lender to issue specific directions to NSDL to withhold the result. The matter will come for final hearing on July 5.The SAT order came after PNB Housing Finance appealed against Sebi's ruling."The company has filed an appeal before the Securities Appellate Tribunal against the letter issued by Sebi on June 18," the lender said on Monday morning in a regulatory filing.ET had on Sunday highlighted this possibility.Sebi had said that resolution related to the deal violates the company’s Articles of Associations and the company must undertake an independent valuation of the business. A shareholders' meeting was scheduled to be held on June 22 to approve the deal.The company maintained that the pricing of the deal is in compliance with all relevant laws and rules," PNB Housing had said on June 19.Following the proposed capital infusion, Carlyle and Salisbury Investments, a family investment vehicle of former HDFC Bank chief executive Aditya Puri, are set to be the new promoters of the company, besides the original promoter Punjab National Bank.
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Fed's "big tent" framework may fray under inflation surge

June 21, 2021 - 8:49pm
WASHINGTON: The US Federal Reserve's carefully crafted move last year to a jobs-first monetary policy, touted as giving workers their best chance after the pandemic, is being tested by a potentially table-turning rebound of inflation and what's become a relative rush of policymakers determined not to let it get out of hand.When the Fed unveiled its new framework just 10 months ago, with a view that employment could expand as much as possible as long as prices did not rise too fast, the language was kept vague on key points in order to maintain unanimous support. The limits to that "big tent" approach are now becoming clear.Three months ago a clear majority of policymakers saw no rate increases for at least three years. Projections out last week showed fewer than a third remain in that camp, with a larger block who see liftoff by the end of next year on the basis of two months of strong inflation.With a promised "broad and inclusive" jobs recovery still elusive, analysts parsing that large and fast shift wondered if the new framework was giving way to an old-school Fed debate over sacrificing more extensive job growth to keep inflation at bay - a tradeoff the central bank has acknowledged it too hastily accepted in the past.The faster inflation and slower-than-expected employment rebound have taken officials "in a direction they were not expecting," said Nathan Sheets, a former Treasury official and chief economist at PGIM Fixed Income. "Their framework is not designed so much to manage through episodes of high inflation" as to boost inflation that had been too low."It will be a more divided Federal Reserve than we have seen during the pandemic. Being true to the framework and balancing the risks is going to be a heavy lift."Fed Chair Jerome Powell has said it's a feat that can be pulled off.Whether he and the Fed's other core policymakers remain convinced they can support a robust jobs recovery and control inflation will be the subject of intense interest in coming weeks, beginning on Tuesday when Powell testifies before Congress.TESTING THE COMMITMENTThe new framework has made one clear break with the past.Across the board, policymakers say they'll accept a period of inflation above the Fed's 2% target before raising short-term interest rates from their near-zero level. That aims both to allow more people to work - employment tends to grow when rates are lower and consumers spend more freely - and to offset a decade of inflation shortfalls.Those anticipating earlier and faster interest rate hikes merely see inflation moving at a faster pace to, and for a time slightly above, the 2% threshold, St. Louis Fed president James Bullard said on Friday, counting himself among the seven officials anticipating rate increases in 2022.Bullard sees a preferred measure of inflation at 3% in 2021 and 2.5% in 2022, and "that would meet our new framework...Other members have other forecasts" that warrant later rate increases."This is very much a debate about what is going to happen in 2022" with inflation, he said.But it is also a debate that will measure how deep the commitment to the new framework runs, what magnitude of inflation "overshoot" different officials will tolerate, and how quickly the Fed reacts if higher inflation persists.The framework is silent on those and other issues critical to key industries like autos and home building where sales are sensitive to interest rates, and for households wondering how long prices may keep surging.Those increases have been "salient" already for households, yet the median of policymakers' projections sees three years of above-target price increases, noted Randall Kroszner, a University of Chicago Booth School of Business professor and former Fed governor.While last week's shift in tone did not upend the new framework, he said, it did show the risks and limits of its application at a complex point in the economy's reopening.Can the Fed “tolerate three years?” of higher inflation, he said. “They have not been explicit…Nothing like this has happened before.”THE PHILLIPS CURVE RETURNS?It's a debate that is also beginning to reflect what has not changed at the Fed under the new framework.Powell and others say that in order not to act prematurely they are responding to realized data rather than forecasts.Yet the meeting last week put forecasting - particularly inflation forecasting - back at center stage. In the battle to shape market and household expectations, the inflation forecasts of the likes of Bullard are now pulling against the likes of Neel Kashkari, the Minneapolis Fed president who thinks inflation will fade to the point where rates can be left at zero until 2024 at least."For me, the framework means, we really have to achieve maximum employment and we have to sustainably achieve 2% on average over time, and a few transitory high inflation readings do not meet the test for me," Kashkari told Reuters on Friday.Sixteen others are in the mix, too, with the framework silent on any agreed-upon definition of critical concepts like "maximum employment" to ground them.Moreover, some aspects of the economy the new framework was meant to downplay seem to still be at work.The Fed's strategic shift deemphasized the so-called Phillips Curve, a longstanding tenet that unemployment and inflation are closely related and when one drops the other rises. Yet at his press conference last week Powell spoke as if that was alive and well, and that if inflation persists, it's because the labor market has gone as far as it can go.Asked why inflation might remain above target in coming years, Powell said that "by 2023, those increases are really about...rising resource utilization, or to put it a different way, low unemployment."In navigating its new approach, it's now a race over how fast and fully the sometimes competing aims of maximum employment and stable prices arrive where the Fed wants them, and whether they get desperately out of sync along the way.
Categories: Business News

Trade setup: Nifty resistance seen at 15,850-15,900 levels; protect profit at higher levels

June 21, 2021 - 8:49pm
In a strong short covering-led pullback, the Indian equity markets had a very resilient day, and it grossly outperformed the weak global trade setup. The Nifty saw a gap down opening following weak global cues. Even though the market opened lower, the levels formed the intraday low for the markets. After opening levels led to formation of the intraday low point, the remaining session saw the Nifty recovering from the lower levels. The index rose over 250 points from the low of the day to not only turn positive, but also close in the positive territory. The Nifty ended with a net gain of 63.15 points or 0.40 per cent.From a technical perspective, the Nifty bounced off from 15,450, the point from where it had originally broken out in the session on Friday. Monday’s session saw the Nifty showing a fierce short covering following a gap down opening. All this points towards the support levels of 15,450 holding out as of now. The volatility continues to remain at lowest levels despite some increase. India VIX rose by 1.77% to 15.0600.The zone of 15850-15900 continues to post a stiff resistance area for the Nifty for the immediate near term. The support exists at 15,670 and 15,510 levels. The trading range for the Nifty has technically gotten wider following the action over the past couple of sessions.The daily RSI is 63.01; it is neutral and does not show any divergence against the price. The daily MACD is bearish and remains below the signal line. A large white body emerged. This showed the directional consensus that prevailed throughout the day.83717751All in all, as long as the Nifty does not move past the 15,850-15,900 zone convincingly, it continues to remain vulnerable to sell-offs at higher levels. Also, the volatility continues to remain towards its lower end; at the levels witnessed only in the beginning of 2020. All this hints that despite strong short covering-led up moves, this is not the time to get complacent. It is important that we continue protecting profits at higher levels.It is strongly recommended that unless the NIFTY is convincingly above its previous highs, one should not get carried away by the pullbacks and continue to approach the markets cautiously while protecting profits vigilantly at higher levels.Milan Vaishnav, CMT, MSTA, is a Consulting Technical Analyst and founder of Gemstone Equity Research & Advisory Services, Vadodara. He can be reached at milan.vaishnav@equityresearch.asia
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Strengthen fight against COVID, says PM Modi

June 21, 2021 - 5:49pm
With the Central government making free COVID-19 vaccination available to all adults from Monday, Prime Minister Narendra Modi appealed to people to get vaccinated to strengthen the fight against the pandemic. The biggest beneficiary of this phase of India's vaccination drive shall be the poor, the middle class and the youth of the country, he said in a message posted on Twitter. India is absolutely committed to strengthening its fight against Covid-19 with people's participation, he said, and shared infographics which reiterated that the vaccines are safe and urged people to ignore rumours. While vaccines were so far free for people above 45 years of age, the facility has now been extended to everyone above 18 years. The message with a heading "World's Largest Free Vaccination Campaign" also outlined the details of the inoculation drive. "Central Government is beginning the 'Free Vaccination For All campaign' for every Indian from today. The biggest beneficiary of this phase of India's vaccination drive shall be the poor, the middle class and the youth of the country. All of us should pledge to get ourselves vaccinated. Together we will defeat COVID-19," Modi said. Under the campaign, vaccine will be available free of cost in government-run vaccination centres.
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Covid: Delhi records this year's lowest daily count

June 21, 2021 - 5:49pm
Delhi logged 89 new coronavirus infections, the lowest so far this year and 11 deaths on Monday, according to data shared by the health department.The positivity rate dropped to 0.16 per cent.On Sunday, Delhi had reported 124 new cases and 7 deaths with a positivity rate of 0.17 per cent.India recorded 53,256 fresh COVID-19 cases, the lowest in 88 days, taking the total tally of COVID-19 cases to 2,99,35,221.The active cases further reduced to 7,02,887, according to the Union Health Ministry data.The death toll climbed to 3,88,135 with 1,422 fresh fatalities, the lowest in 65 days.With Inputs from PTI
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'Calibrated steps needed for eco recovery'

June 21, 2021 - 5:49pm
Calibrated measures are needed to support the country's economic recovery and to diminish the daunting impact caused by the second wave of the COVID-19 pandemic on trade and industry, PHDCCI President Sanjay Aggarwal said on Monday. He also pitched for doing away with the customs duties on the imports of primary raw materials for industrial use for at least the current fiscal year and imposing export duties on various primary commodities, which are showing huge price increases - rising 50 per cent over the last fiscal. Aggarwal said that trade and industry have to be rejuvenated for achieving a high economic growth trajectory in 2021-22. "There is a need to re-fuel household consumption to enhance demand in the economy as it will have an accelerated effect on the expansion of capital investments in the country," he added. He said that frontloading the National Infrastructure Pipeline expenditure would provide a much-needed multiplier effect to create aggregate demand in the economy and strengthen the economic recovery. "Government/ PSU payments must not be delayed due to Work From Home issues or shortage of funds as these are crucial to maintain the working capital cycle," Aggarwal said.
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PSU bank stocks may beat Nifty for next 3-6 months

June 21, 2021 - 5:49pm
For the next 3-6 months, PSU banks would be better off relative to the market, says Mahantesh Sabarad of SBICAP Securities in this interview with ET Now. Edited excerpts:What's behind the market's resilience? Even the shallow dips are getting bought into.There is this whole preponderance of liquidity in the market. Earlier we used to see liquidity surge from FIIs. We now find that a liquidity surge is coming from domestic investors as well on a sustained basis. If we look at corporate earnings, the resilience is clearly visible. Therefore, the dips will get bought.What is a good buy on dips now? Nifty Metal index is down 10% from its recent high. Can metal stocks be one such buy now?I think we continue to remain bullish on the entire commodity play. We continue to believe that capacity utilisations are going up and prices are increasing. An increase in volumes would be good for most of the commodity stocks.What is your outlook on Jubilant Pharma?Jubilant Pharma is not on our radar. The rerating is not yet clear. I think it is better to focus on the larger pharma companies.How are you looking at the overall PSU basket given the privatisation trigger?PSU banks have been a rank underperformer for several years now. They have been struggling with capital because NPA ratios have been very high for most of them. Fortunately, the provision coverage ratio this time around is upwards of 90% for many banks right now. With such large provision coverage ratios and with the CAR ratio now around 14-15%, many PSU banks are looking quite strong from a balance sheet perspective. The worst of the NPAs is now over. With the pandemic recovery now setting in, banks should be able to get into a recovery mode quite swiftly. We have witnessed this in large PSU banks. The smaller PSU ones are catching up right now. So for the next 3-6 months, PSU banks would be better off relative to the market.
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Why China is getting tough on cryptocurrency

June 21, 2021 - 5:49pm
Cryptocurrency prices have fluctuated wildly in recent weeks as China intensifies a crackdown on trading and mining operations. On Monday bitcoin slumped more than 10 percent after Beijing pulled the plug on the massive mines of Sichuan province. China's regulatory assault on the digital currency has crypto watchers reaching for answers as to why Beijing is clamping down now and what it means for the market. Why the crypto crackdown? Beijing craves control, with the financial system now increasingly in its sights. Bitcoin, the world's largest digital currency, and other cryptos cannot be traced by a country's central bank, making them difficult to regulate. Chinese authorities outlawed trading this month to "prevent and control financial risks". Analysts say China fears the proliferation of illicit investments and fundraising -- it also has strict rules around the outflow of capital. Crypto transactions threaten these controls. "China does not have an open capital account and cryptocurrencies circumvent this which is an anathema to China's authorities," Jeffrey Halley, Asia Pacific analyst at Foreign Exchange trading firm Oanda, told AFP. But the crypto crackdown also opens the gates for China to introduce its own digital currency, already in the pipeline, allowing the central government to monitor transactions. While crypto creation and trading have been illegal in China since 2019, Beijing's latest moves have led to its vast network of bitcoin miners shutting up shop.What makes China important? China's electricity-guzzling bitcoin data centres power nearly 80 percent of the global cryptocurrency trade. Access to cheap power and hardware has allowed Chinese companies to process the vast majority of crypto transactions and generate the tedious hexadecimal numbers needed to mint new currency. China relies on a particularly polluting type of coal, lignite, to power some of its mining and Bloomberg predicts it will not be able to meet its cryptocurrency industry's needs through renewable energy until 2060. Crypto-mining is expected to use 0.6 percent of the world's total electricity production in 2021 -- more than the annual consumption of Norway -- according to Cambridge University's Bitcoin Electricity Consumption Index. Chinese restrictions may in part be triggered by the fact that crypto's enormous power demands have led to a surge in illicit coal extraction, posing a serious risk to Beijing's ambitious climate goals. Several provinces have ordered mines to close as the central government plays whack-a-mole with the shadowy sector. Authorities in the province of Sichuan ordered the closure of 26 mines last week and told power companies not to supply electricity to the energy-guzzling facilities. The hit on one of the largest mining provinces tanked the price of bitcoin to $32,309.What are China's digital currency plans? China launched tests for a digital yuan in March. Its aim is to allow Beijing to conduct transactions in its own currency around the world, reducing dependency on the dollar which remains dominant internationally. "It is about making the yuan more internationally available whilst maintaining complete control," analyst Halley said. But while countries race to get their own digital currencies in a market-leading position, experts say state-sanctioned digital money will not dampen the wider appeal of crypto as a safe place far from the reaches of governments. "Bitcoin only marginally competes as a payment system," Leonhard Weese, Co-founder at The Bitcoin Association of Hong Kong said. "At the moment, its main appeal is that it cannot easily be seized, censored and debased."
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Cadila, Bayer extend JV partnership for 3 years

June 21, 2021 - 5:49pm
Cadila Healthcare and Bayer (South East Asia) have decided to extend the operations of their joint venture by three years with effect from June, the companies said in a joint statement on Monday. The companies had entered into an agreement on January 28, 2011, to set up the joint venture Bayer Zydus Pharma for the sales and marketing of pharmaceutical products in India, with headquarters in Mumbai. "The spirit of partnership in this joint venture has all been about channelling the core strengths of both Zydus and Bayer for the benefit of the patients," Cadila Healthcare Managing Director Sharvil Patel said. During the term of the joint venture, the JV firm has launched some of Bayer's global innovative assets like Xarelto, Eylea and Visanne in India. Going ahead, Bayer Zydus Pharma will continue to operate in core therapies, including cardiovascular diseases, diabetes, women's health, ophthalmology and oncology, with new products in the pipeline, the companies noted. "The JV with our trusted partner Zydus Cadila has been successful over the last decade in driving scalable reach of our health solutions to patients across the country. We endeavour to carry this momentum forward, harnessing the benefits of our partnership towards delivering innovation-led, patient-centric offerings and digital health tools in India," Bayer Zydus Pharma Managing Director Manoj Saxena said. Ahmedabad-based Zydus Cadila discovers, develops, manufactures, and markets a broad range of healthcare therapies. The group employs nearly 25,000 people worldwide. Cadila Healthcare is the group's listed entity. Bayer, a multinational firm, employs around 1,00,000 people and has posted sales of EUR 41.4 billion in the 2020 fiscal.
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Steel stocks can fall by another 10%. Here's why

June 21, 2021 - 5:49pm
I would wait for at least a few weeks or even a few months for a 10% correction in the metal space, says G Chokkalingam, Founder & MD, Equinomics Research & Advisory, in this interview with ET Now. Edited excerpts:What do you make of this recent valuation surge, especially in the midcap and the smallcap side of the market? Do you think we are getting into a bubble zone or the earnings recovery will make valuations look cheaper in hindsight?I firmly believe that we are getting into a bubble zone, at least in half of the smallcap and midcap stocks. If you look at the pre-pandemic level of January 2020, Sensex has gone up roughly by about 27% whereas the smallcap index is up by nearly 80%. Now look back at the last 17 years, ever since the smallcap index was constituted by BSE, this kind of outperformance has got corrected. Do not just go by history, it is also logical because the valuations are stretched. There are many smallcaps trading at 30-35 PEs and 10 times EV to sales. I believe it is not sustainable. Of course, there are pockets of opportunity. The right thing is to do a bottom-up approach. Otherwise, reduce the overall exposure to smallcaps. Have at least 30-50% exposure to institutional stocks with above Rs 4,000 crore market cap. But do not zero your exposure to smallcaps. Have 30-40% exposure in high-quality smallcaps and follow the bottom-up approach.A lot of midcaps are getting benefitted from the increase in commodity prices. Do you these companies would do well in the near term?If you look at the commodity space, it is all cyclicals. One should never have a linear approach to make wealth in commodity stocks because they are cyclicals. So bad luck will come. You have to play the cycle smartly. Now the time has come for most of the commodities to correct. Even though consumption went down, commodity prices went up because of supply controls. The stocks also went up. This is not sustainable and one should be very cautious in the commodity space.What is your outlook on steel stocks given their debt reductionDebt reduction is good but it is already in price. Some steel stocks have gone up even four times within a year. Look for another 5-10% fall and see who has reduced the maximum debt. You can be ready with your analysis for making second round (of investment), but it is not the right time to buy now. I still believe that there is an opportunity for a minimum 10% fall in these stocks because of what is happening in China. Also look at the GDP growth. We are coming back to what it was in 2020. The absolute GDP in FY22 could be the same as what was in FY20. This is something new for us. We have to wait and see how long it is going to impact the demand for metals. So I would wait for at least a few weeks or even a few months for a 10% correction in the metal space.Where should one invest now? MNC stocks, IT stocks or FMCG?Investors with an average risk profile should invest a minimum of 30% in stocks like ITC and Infosys. Hindustan Zinc is an exception because it gets 42% of profit from silver which is like other metals. It also gives excellent dividend.Bharti Airtel is going to be a growth story. It (telecom) is almost a duopoly market. Although I have expressed my fear on smallcaps, I firmly believe that the next 2-3 years is going to be a phenomenal story for making wealth in smallcaps. That is why you should have a bottom-up approach because of the kind of money coming in from private equity venture funds who are buying even listed stocks. So there are ample opportunities in the listed space in smallcaps. You can choose from mid-sized IT and small pharma companies. Choose carefully based on four-five parameters – good management, good balance sheet, no working capital crisis and listing in the market for at least 5 to 10 years and then also look for a decent valuation. So you can put 30-40% in such quality smallcaps.
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Indications of revival in activity: Survey

June 21, 2021 - 5:49pm
With states easing lockdown curbs due to declining number of COVID-19 cases, there are immediate indications of improvement in economic activity as companies are hopeful of better performance in the next 6 to 12 months, according to a survey. About 60 per cent of 212 companies, which participated in the survey conducted by Ficci and Dhruva Advisors, said there was a high impact on their businesses due to the state-level lockdowns. With different parts of the country under different sets of restrictions and consumer sentiment impacted due to the ferocity of the second wave of COVID-19, an evident dip in demand was witnessed by companies, it added. This time it was not just demand in urban areas that was constrained but even the rural areas saw a compression in demand, according to the survey. "While the impact of the second wave-induced lockdowns on businesses is clearly visible, there is a silver lining on the horizon...With different states getting into the unlock mode, there are immediate indications of improvement in economic activity," the survey said. Ficci said that with the number of new cases ebbing and states getting into the unlock mode, there is hope that business and economic activities would regain normalcy in the months ahead. "Even as we see signs of improvement, we must prepare ourselves well for the subsequent waves....Clearly, vaccination at scale has to be the priority if we have to beat COVID-19 and put it behind us," it added. For dealing with any subsequent waves, it suggested five measures -- ramping up investments in healthcare infrastructure in smaller cities and rural areas; maintaining a sufficient pool of essential medicines; continuing with newly created temporary facilities; strengthening testing infrastructure, and setting up a national facility for vaccine manufacturing with government funding. The survey also suggested setting up vaccination facilities at airports, railway stations, bus depots, schools and village panchayat ghars; organizing mobile vans that can undertake vaccination in slums, rural areas and planning for vaccination of the elderly and people with disabilities, who have limited mobility, at home.
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Retail to be next growth engine for Reliance, says a Goldman Sachs report

June 21, 2021 - 5:49pm
With a potential for a 10x growth in pre-tax profit from the business over the next decade, retail including e-commerce will be the next growth engine for Reliance Industries Ltd, Goldman Sachs said in a report. After growing 5x over FY16-FY20, RIL's core retail revenue growth has taken a pause in FY21 (April 2020 to March 2021) due to Covid related macro headwinds including lower footfalls. The oil-to-telecom conglomerate run by billionaire Mukesh Ambani used the period to build strong digital capabilities of the retail business while continuing to expand its physical reach. "We believe retail business (including e-commerce) is set to be the next growth engine for RIL, with potential for retail EBITDA to grow 10x over the next 10 years," the brokerage said. During the macro downturn, RIL has focused on building strong digital capabilities and the scale-up in omnichannel offering is driving sizeable market share wins. "We see a six-fold increase in grocery organised retail penetration in India by FY30, coupled with 15 per cent market share gain for RIL. "We expect RIL core retail revenue to grow at a 36 per cent CAGR over the next four years to USD 44 billion and e-commerce revenues to be 35 per cent of total retail revenues in FY25, at USD 15 billion," it said. It forecast a 50 per cent market share for RIL in online grocery by FY25, with a 30 per cent market share in overall e-commerce. This translates into USD 35 billion e-commerce GMV (gross merchandise value) for RIL by FY25, with USD 19 billion in grocery. "Overall, we expect retail EBITDA to grow 10x from current levels by FY30," it said. Goldman Sachs valued RIL's retail business at USD 88 billion in the base case and at USD 120 billion bull case valuation based on stronger than expected macro growth and market share wins. It valued RIL's retail business using discounted cash flow (DCF) at USD 57 billion for offline business and USD 32 billion for e-commerce. "We see a multi-year runway of growth driven by our expectation of growing organised retailing in India from a 2.6 per cent share today to a 13.2 per cent share in FY30 and rising market share for RIL in organised retailing due to its omnichannel strategy with a market share going from 41.5 per cent now to 54.7 per cent in FY30," it said. With a USD 400 billion GMV, grocery is the largest retail category in India, accounting for 60 per cent of the total retail market. "We expect RIL core EBITDA growth of 59 per cent year-on-year in FY22E based on cyclical growth in the oil-to-chemical (O2C) business, and structural growth in the consumer businesses," it said. Over the next 12 months, continued sequential earnings recovery is expected along with catalysts around telecom tariff hikes, new product launches with Google, Facebook and Microsoft, and potential value unlocking from a proposed energy business stake sale.
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Efforts are underway to create oxygen production capacity in different units of BHEL

June 21, 2021 - 5:49pm
Efforts are on to create oxygen production capacity in different units of government-owned BHEL (Bharat Heavy Electrical Ltd) and so far over 5 lakh cubic meters of medical oxygen has been provided by its plants to deal with the second wave of COVID-19 pandemic, the heavy industries, and public enterprises ministry said on Monday. It said BHEL's plants located at Bhopal and Haridwar supplied medical oxygen in and around their vicinity. "Further, efforts are underway for creating oxygen production capacity in other units of the company too," the ministry said in a statement. It added that witnessing the acute shortage of medical oxygen in the country during mid-April, the BHEL Haridwar plant created cylinder filling capacity for over 3,000 cylinders per day. This plant has so far filled almost 67,000 cylinders (over 3,87,000 CuM) of medical oxygen for meeting the requirements of hospitals. Similarly, BHEL's Bhopal plant has so far supplied over 1,74,000 cubic meters of oxygen (over 26,000 cylinders) to various hospitals. The company's Hyderabad unit has also revived a 40-year-old oxygen plant that was not in operation for the last 12 years.
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Airtel counters Jio's local 5G narrative; partners Tata Group to deploy OpenRAN-based 5G in India

June 21, 2021 - 5:49pm
Bharti Airtel has entered into a strategic partnership with Tata Group to deploy Open-RAN-based 5G radio and core solutions, which the latter has developed locally. The move will allow the telco to reduce the cost of 5G deployment as it uses the OpenRAN technology and is developed indigenously, analysts said.The Sunil Mittal-led telco said that it will pilot and deploy this indigenous solution developed as part of its 5G rollout plans in India and start the pilot in January 2022.Airtel's latest partnership is significant as it aims to counter Reliance Jio's "made-in-India" pitch for the country's 5G networks. Jio has also developed its own end-to-end telecom stack comprising radios and core technologies, which it is currently piloting in Mumbai and intends to commercially deploy once 5G spectrum is available commercially.The Sunil Mittal-led telco said that Tata Group has developed a ‘state of the art’ O-RAN based radio and NSA/SA core technology and has integrated a totally indigenous telecom stack, leveraging the Group own capabilities via Tata Consultancy Services (TCS). This will be available for commercial development starting January 2022.Tata Group is also working with a number of start-ups and local companies for the R&D and local manufacturing in future. "We are delighted to join forces with the Tata Group to make India a global hub for 5G and allied technologies. With its world-class technology ecosystem and talent pool, India is well positioned to build cutting edge solutions and applications for the world," Gopal Vittal, MD & CEO (India and South Asia) Bharti Airtel said in a statement.Vittal said that the partnership will provide a massive boost to India becoming an innovation and manufacturing destination.“As a Group, we are excited about the opportunity presented by 5G and adjacent possibilities," N. Ganapathy Subramaniam from the Tata Group/ TCS said in a joint statement. OpenRAN as a concept enables hardware and software to be dis-aggregated, unlike conventional radio gears, allowing technology products from different suppliers to co-exist with the various software providers. Jio and Airtel are eyeing OpenRAN as a viable method to cut network-related costs and bring in more customisations as they upgrade their networks to 5G technology."Airtel‘s strategic partnership with Tata could allow it to reduce its cost of 5G deployment and thus help support the business case for 5G rollout, which has been challenging for operator’s globally. The partnership also aligns well with the government’s Make-in-India push," Ashwinder Sethi, Principal at Management Consultancy Analysys Mason told ET.ET previously reported that Airtel was in talks with local and multinational vendors to locally produce 5G gear and other wireline and wireless networking products. To strengthen its make in India story, Bharti Enterprises Ltd had recently inked a pact to form a joint venture (JV) with Dixon to manufacture telecom and networking products.Airtel said that the ‘Made in India’ 5G product and solutions are aligned to global standards, and inter-operate with other products based on standard open interfaces and those defined by the O-RAN Alliance. Tata Group company, Tata Consultancy Services (TCS), is bringing its global system integration expertise to bolster the 5G offering besides helping align the end-to-end solution to both 3GPP and O-RAN standards.The 5G solutions, once commercially proven in Airtel’s diverse and brownfield network, will open export opportunities for India, which is now the second largest telecom market in the world, Airtel said in a statement.
Categories: Business News

BofA expects crude oil to reach $100/barrel level next year

June 21, 2021 - 5:49pm
BofA Global Research raised its Brent crude price forecasts for this year and next, saying that tighter oil supply and demand balances in 2022 could push oil briefly to $100 per barrel."We believe that the robust global oil demand recovery will outpace supply growth over the next 18 months, further draining inventories and setting the stage for higher oil prices," the bank said in a note dated Sunday.The bank raised its Brent crude oil price forecast to $68 per barrel from $63 earlier. In 2022, it expects Brent to average $75 per barrel versus its earlier estimate of $60.The bank noted that U.S. shale will likely respond to these higher prices by ramping up production and Brent would roll back down to average $65 per barrel by 2023.The oil market will likely remain in deficit for the foreseeable future, averaging a shortfall of 0.9 million barrels per day (bpd) over the next six quarters, it said.BofA expects consumption growth to rebound strongly this year and next by 5.6 million and 3.6 million bpd respectively, the fastest since at least the 1970s.While demand is set to recover at a rapid pace in the coming months, the bank cautioned that ample OPEC+ spare capacity and a likely return of Iran barrels will cap oil prices this year.Oil prices edged higher on Monday, underpinned by strong demand during the summer driving season and a pause in talks to revive the Iran nuclear deal that could lead to a resumption of crude supplies from the OPEC producer.
Categories: Business News

Porinju tweaks his approach to value investing

June 21, 2021 - 2:49pm
After suffering from heavy losses in 2018 and 2019, Porinju Veliyath, Founder, Equity Intelligence India, says he has tweaked his strategy and approach to value investing but without compromising on the basic principles of value investing. Edited excerpts from his interview:Why were you in vanvas?As everybody knows, we had two tough years of painful time in value investing. But these mistakes happen to even the best of investment gurus. The most important thing is to learn from these mistakes and move ahead. That is exactly what we have been doing. I have seen the market since the open outcry days and now the Zerodha phase. So it is not that I am seeing that kind of a cycle for the first time. We have also tweaked our strategy and approach to value investing but without compromising on the basic principles of value investing. Equity investors have a long way to go in India. These are exciting times. It does not mean that one should be bullish always and keep buying stocks. Investors have to be willing to accept corrections. We have seen the deepest of corrections in 2018 and 2019, especially in the broader market. I think in my 30 years of career, those were the most painful two years for me.We have not spoken to you in a while. So tell us a bit more about what has been that big learning and how exactly have you changed your portfolio orientation? In your earlier avatar, you were actively investing in some of the B group stocks. Have you changed your portfolio strategy completely?No, we have not changed the strategy completely. We have tweaked certain aspects of it. I was betting on certain aspects of the economy. We have a pro-business government and so there has been some very important long-term reforms like GST, RERA and IBC. I was betting on themes like formalisation of the economy and better compliance. It has really started playing out now and will be the biggest theme going forward. But I made a mistake. When I look back, perhaps I played the theme a bit early. That was definitely a big loss for my clients, but we have been recovering extremely well. We gave 153% return in the last financial year. That does not mean all the pain is over. A few accounts, which started at the peak of that smallcap strategy, are still slightly negative. It was very painful to see a middle-class family's investment of Rs 50 lakh going down to below Rs 25 lakh in a short period of time. It's okay if it was a rich guy. Now their Rs 25 lakh has gone up to Rs 40-60 lakh. The portfolio of those who invested a year ago is up by 200%.It is not a big thing to take credit. A lot of fund managers and investors have perhaps done better. We all know that the culture and DNA of companies are very difficult to change. That is where I went wrong, to some extent, in the hindsight. Some of those promoters did not change. Instead of changing and creating a better company, they took out all the money. Our legal system is not designed to give protection from such kind of criminal activities. I hope things will improve further. The biggest theme today is to buy the proven winners - the bluechips. A lot of them have been great compounders. But the real opportunity is in the broader market. The formalisation of the economy is the real theme to be played out.
Categories: Business News

India registers 53,256 new COVID-19 cases

June 21, 2021 - 2:49pm
In what could be seen as a clear sign that second wave is receding, India recorded 53,256 new coronavirus cases, the lowest daily spike in 88 days, taking the total tally of COVID-19 cases to 2,99,35,221, while the active cases reduced to 7,02,887, according to the Union Health Ministry data updated on Monday.The death toll climbed to 3,88,135 with 1,422 fresh fatalities, the lowest in 65 days.According to govt data, the active cases now comprise 2.35 per cent of the total infections, while the national COVID-19 recovery rate has improved to 96.36 per cent, the data updated at 8 am showedA net decline of 26,356 cases has been recorded in the COVID-19 caseload in a span of 24 hours.As many as 13,88,699 tests were conducted on Sunday taking the total cumulative tests conducted so far for detection of COVID-19 in the country to 39,24,07,782.The daily positivity rate was recorded at 3.83 per cent . It has been less than 5 per cent for 14 consecutive days, the ministry said, adding the weekly positivity rate has declined to 3.32 per cent.Recoveries continue to outnumber daily new cases for the 39th consecutive day.The number of people who have recuperated from the disease surged to 2,88,44,199, while the case fatality rate has increased to 1.30 per cent, the data stated.Cumulatively, 28,0036,898 COVID-19 vaccine doses have been administered so far.India's COVID-19 tally had crossed the 20-lakh mark on August 7, 30 lakh on August 23, 40 lakh on September 5 and 50 lakh on September 16.It went past 60 lakh on September 28, 70 lakh on October 11, crossed 80 lakh on October 29, 90 lakh on November 20 and surpassed the one-crore mark on December 19.India crossed the grim milestone of 2 crore on May 4.The 1,422 new fatalities include 605 from Maharashtra, 182 from Tamil Nadu, 120 from Karnataka and 112 from Kerala.A total of 3,88,135 deaths have been reported so far in the country including 1,17,961 from Maharashtra, 33,885 from Karnataka, 31,197 from Tamil Nadu, 24,914 from Delhi, 22,178 from Uttar Pradesh, 17,348 from West Bengal, 15,826 from Punjab and 13,387 from Chhattisgarh.The ministry stressed that more than 70 per cent of the deaths occurred due to comorbidities."Our figures are being reconciled with the Indian Council of Medical Research," the ministry said on its website, adding that state-wise distribution of figures is subject to further verification and reconciliation. (With inputs from PTI)
Categories: Business News

Bengaluru plans shield for ‘third wave’

June 21, 2021 - 2:49pm
Public-private partnership has emerged as a pillar of Bengaluru’s Covid-19 vaccination drive as authorities push for at least partial inoculation of four-fifths of the city’s 18-plus population by the end of July and stave off a possible third wave of infections.The target looks achievable, considering that about half of the city’s eligible (9 million) population has received at least one jab-- about 3.8 million have got the first shot while another 693,000 people had received their second dose by Sunday.Since a single dose of the vaccine is expected to provide 60-65% protection against Covid-19, officials of the Bruhat Bengaluru Mahanagara Palike (BBMP) are hoping that it will rescue the city from a third wave.About 70,000-90,000 people have been vaccinated daily this month, and the BBMP plans to increase this to 100,000 a day. In fact, Bengaluru has vaccinated 100,000 people a day thrice this month--the only Indian city to do so.“Our daily vaccination is the highest across India, covering one person every second and 1% of the adult population every day. We plan to administer the first dose to another 3,000,000 people by the end of July if the supply remains undisrupted,” BBMP chief commissioner Gaurav Gupta told ET. The vaccination hyperdrive that the civic body is running, is the biggest bulwark against the expected third wave, he said.Of the average 90,000 doses administered daily, 25,000-30,000 are given at BBMP-run centres, while the majority of inoculations take place in privately organised camps. The vaccination in the government centres is limited to those above the age of 45 and also priority groups, like transgenders, street vendors, sports persons, members of film industry, etc. Privately organised camps are open for employees, residents and various other categories of people who are above 18 years of age.Although the Centre has allowed private hospitals to buy only 25% of the vaccines produced in the country, Bengaluru seems to be receiving a major share of this due to its thriving hospital sector, IT companies, resident welfare associations, corporates, non-profits and various philanthropic initiatives that are organising vaccination camps and paying for the shots.“Public private collaboration is working extremely well in Bengaluru,” Gupta said.The BBMP has begun a house-to-house survey to identify people who are not vaccinated. The municipal body will then request them to participate in any of the public or privately held vaccination camps."If 80% of the population is given the first dose by July, we will start administering the second dose from August and it will stretch for about 3-4 months," Gupta said.
Categories: Business News

Optional CBSE exams between Aug 15-Sep 15

June 21, 2021 - 2:49pm
In a new affidavit to the Supreme Court, CBSE has said results of Board Exam 2021 will declared by July 31. Optional exams will be held tentatively between Aug 15-Sep 15, subject to conducive situation, it added. And disputed will be referred to a committee constituted by the CBSE.CBSE has already announced a 30:30:40 formula for evaluating marks for Class 12. Class 12 students will be determined by their performance in classes 10 (30%), 11 (30%) and 12 (40%).The CISCE will also take into account the overall performance in the last six years, as per the evaluation criteria submitted by school boards before the SC.A 13-member team was constituted and the Board said that the panel will submit its report within 10 days. As per media reports, the panel was supposed to submit their report on June 14, but the committee asked for an extension.Several state boards, including Maharashtra, later cancelled their exams. Principals had told the committee that they are in a position to mark students based on tests and exams conducted in schools during the academic year 2020-21.The Class 12 exams were cancelled by Prime Minister Narendra Modi on June 1. The examinations had to be cancelled due to the rise in Covid-19 cases across the country.
Categories: Business News

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