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Simple ideas to navigate complex markets in your investing journey

November 20, 2020 - 10:57pm
By Amit GroverSome of the fatal diseases of the last century were pneumonia, TB and diarrhoea. Today, more individuals die due to stress and lifestyle-related diseases. Studies show financial stress is one of the major causes of stress. Most self-help gurus and many books focus on how to be happy. That’s the wrong approach. The continuous desire for pleasure or positive experience is a negative experience.The same is true with equity investment. We want to avoid volatility. But volatility is like rain. Markets have been volatile, are still volatile and will continue to be volatile. Making peace with your negative experience is a positive experience. In the same fashion, rather than worrying about volatility, one should embrace it.Sometimes, common sense tells us what statistics cannot. Every businessman wants to be successful, but it’s not possible for everyone to be so. It’s also not necessary that existing successful companies will keep winning. Every invention, sooner or later, would lead to a counter-invention. Every success contains the seeds of its overthrow. Every supremacy comes to an end.In nature, the hunter and the prey keep on evolving. Competition keeps on throwing up new players and new winners. One can reduce one’s worry by investing in a well-diversified portfolio.It’s often said that one should be greedy when others are fearful. And one should invest in equity when there is blood on the Street. But how can one invest when the blood on the Street, when it is our own blood. We are emotional beings. We are fearful when others are fearful. That’s why one should have fixed income and right asset allocation in the portfolio.Future is always uncertain. Calendar 2020 reinforces this point. We should buy stocks so that we can eat well in the future, but at the same time, we should buy bonds so that we need to worry less. Should one buy a house and pay EMIs for next 20 years or stay on rent is a very personal question. In personal finance, there is no one size that fits all. One can be 80 years old and have majority of his portfolio in high risk assets. On the other hand, one can be 30-year old with a safe portfolio.We all have unique goals. So the only way to worry less is by having a unique plan that suits our personal needs. People generally use historic returns as an anchor to decide future returns. Good returns of a particular asset class in the current decade is no guarantee of similar performance next decade.Every era is unique and offers a unique set of risk and returns. There have been decades of no to negative returns in equity. There can also be long periods of low interest rates. Equity has the potential to beat inflation in the long run. But no one can say how long. One should design a plan assuming the worst-case scenarios. One will worry less if the expectations are low.An optimistic person designed a car, a pessimistic person designed the seat belt. One should be a bit of pessimistic here. One should think about losing job or having a loss in his business, falling sick, having a prolonged recession or a market crash.Being pessimistic helps save and invest more. Investing is not a like a James Bond movie, where we have to live on the edge all the time and assume that nothing wrong can ever happen. To reduce the worry, one would be mentally and financial prepared for all scenarios.In the book Everybody Lies, they have shared an example wherein Netflix used to ask its users for a wish list. People would list out intellectual aspirational movies they would never watch. Netflix stopped asking and started predicting instead.When it comes to investment, we should stop lying to others and oneself. We want to sound intelligent, while discussing money with friends, relatives and colleagues. Simple ideas of mutual funds, SIP, asset allocation create a blockbuster experience.Most of us are going to be average in most of the things we do. Our energies are limited, and we can be good in only a few areas of life. Studies show there is a big gap between market returns and client portfolio returns. We do crazy things in our constant desire to beat the market and end up losing money. It’s OK to get benchmark returns. One can achieve this by investing in passive and active mutual funds.In the book Emotional Intelligence, author Daniel Goleman says success in life is 20% intelligence and 80% emotional intelligence. Emotional intelligence depends on one’s ability to be self-aware and self-regulate.Delayed gratification, avoiding constant comparison with others, finding contentment with current wealth, resisting the temptation of gambling and speculation are all parts of emotional intelligence. In investment, the best investors know the benefit of not touching their portfolios for decades.These investors are not lazy. They understand the value of doing nothing. As part of our evolution, our emotional part of the brain was developed first followed by rational part.Money is an emotional subject; developing ones emotional intelligence with continuous practice is a good way to reduce worry.(Amit Grover is AVP for Learning & Development at DSP Investment Managers. Views are his own)
Categories: Business News

Low wage rise despite bumper profits: CMIE

November 20, 2020 - 7:57pm
Labour wages have grown by meagre 3.8% in the quarter ended September 30, 2020 despite bumper profits of over registered by listed companies, the Centre for Monitoring Indian Economy said, adding that recovery in wages looks bleak unless there is sustainable revival in demand and companies invest in creating new capacities. According to CMIE, wages grew by 3.8% in the quarter of September 2020, which was lower than the bottom quartile of its distribution which was 7.8%. This is low compared to average y-o-y growth of 13% in wages over the past 60 quarters. Meanwhile, growth in profits in the September 2020 quarter was higher than in the top quartile of the distribution of profits growth over the past 60 quarters, which was 21.9%, it said, adding the average growth profits in the past 60 quarters was 11.8%while the median was 9.1%. “The low single-digit growth in wages in the last two quarters is therefore very low by historical standards and is in stark contrast to the extraordinary profits earned by companies,” CMIE said.“Employment in the corporate sector could recover if business picks up again and employment would grow only if the corporate sector starts investing into new capacities,” it added. The outstanding profit performance in the September 2020 quarter may contain any fall in the wage rate in the corporate sector for some time but employment growth will depend upon a sustained revival of demand, it said.According to CMIE, while there is no relation between growth in profits and growth in wages in business and for corporate honchos, corporate managers would minimise their wage bill to maximise their profits.CMIE analysis shows manufacturing companies registered a 17.8% jump in profits but wages declined by 1% in the sector. In listed manufacturing companies, wages accounted for 5-6% of net sales but this went up to 6.2% in the September quarter, it said. “This could make a case for a further cut by either a recovery in business and thereby an increase in other costs or through further cuts in the wage bill,” it said.Talking about the non-financial services sector, CMIE said that though the sector posted profits in the September 2020 quarter, the large sustained losses in the communications, aviation, trade and hotels and tourism industries may continue for some more quarters. “This raises doubts about the ability of these labour intensive industries to provide employment again in the short term,” it added.
Categories: Business News

Mumbai's Arihant Superstructures board approves plan to sell seven acres of land in Jodhpur

November 20, 2020 - 7:57pm
MUMBAI: Realty developer Arihant Superstructures’ board of directors has approved the plan to sell two land parcels totaling nearly 7 acres in Jodhpur out of its total 25-acre land holding in the city.Of the two plots, the company will be selling 6.4 acre at its project Arihant Akarshan in Chokha locality of the city, while over half an acre will be from the project Arihant Adita on Gangana Road, the company said in a regulatory filing.These plots will be sold through a public tender and bidding process. The company is planning to utilize the proceeds of this transaction to repay part of unsecured debt and for additional working capital for its Jodhpur business.The company’s board has constituted a sub-committee consisting of an independent director Virendra Mittal, whole-time director Nimesh Shah and its chief financial officer Deepak Lohiya. This sub-committee has submitted its report to the board.On Friday, shares of Arihant Superstructures closed at Rs 23.80, up 4.8% over previous close.
Categories: Business News

CCI clears Reliance-Future retail deal despite Amazon's objections

November 20, 2020 - 7:57pm
MUMBAI: India's antitrust body on Friday cleared oil-to-telecom giant Reliance Industries' bid to buy Future group's retail assets even as Amazon.com sought to block the potential deal, alleging contractual violations by the latter. The approval by the Competition Commission of India (CCI) is a setback for U.S. giant Amazon, which has argued that a 2019 agreement it inked with Future prevented the Indian group from selling its retail assets to certain parties, including Reliance - led by Asia's richest man, Mukesh Ambani. Amazon - an investor in one of Future's holding companies - last month won an injunction against the deal from an arbitrator in Singapore. Amazon has also approached the CCI and the country's market regulator Securities and Exchange Board of India (SEBI), urging them to consider the arbitration order and not approve the deal. Future Retail, however, said the agreement in question was not with the company, but with the company's largest shareholder and the arbitration order was not valid in India. It has also taken Amazon to court in an effort to prevent it from sending letters to regulators. Untitled Carousel 78982112 79305661 78869654 78966659 79245381
Categories: Business News

Market Movers: Vodafone Idea, Bharti Infratel gain up to 18%; Gland Pharma makes strong debut

November 20, 2020 - 7:57pm
NEW DELHI: Select public sector banks including Bank of India, Central Bank of India, India Overseas Bank, UCO Bank, Bank of Maharashtra and Punjab & Sindh Bank hogged the limelight in Friday’s trade after reports that the government is considering a liberal policy in allowing takeovers and mergers of PSU banks by corporates and foreign banks. On the other hand, Vodafone Idea and Bharti Infratel surged on completion of the Bharti Infratel and Indus Towers merger deal.Overall, buying in HDFC Bank, Kotak Mahindra Bank, Bajaj Finance, Bajaj Finserv and Bharti Airtel took the benchmark equity indices higher by over half a per cent. The 30-share BSE Sensex gained 282 points at 43,882, while the 50-share Nifty index advanced 87 points to 12,859.Joseph Thomas, Head of Research, Emkay Wealth Management, said, “The market was volatile for almost half of the day’s trading, but closed on a positive note in line with almost all Eastern markets, and European markets at the opening. The spirits were upbeat with a major IPO listing, and the possibility of a vaccine becoming available in the first quarter of the next year. The markets looked well supported at the current levels with the rising interest of foreign investors in the domestic markets."Here is a lowdown on what happened in today’s trade:Bharti Infratel rallies 18%Shares of Bharti Infratel advanced nearly 18 per cent after the company said its proposed merger with Indus Towers to create a mega tower company has been completed. The scrip closed 17.73 per cent higher at Rs 218.50.Vodafone Idea rings louderShares of Vodafone Idea climbed over 8 per cent after the company received Rs 3,760 crore cash on completion of the Bharti Infratel and Indus Towers merger deal. The scrip settled 8.31 per cent up at Rs 10.04.Apollo Hospitals gains over 2%Shares of Apollo Hospitals climbed over 2 per cent after the company announced a collaboration with Tata Medical and Diagnostics (TataMD) to introduce 'TataMD CHECK' diagnostic test for Covid-19 in the country, which will provide faster results. The scrip closed 2.23 per cent higher at Rs 2,352.PSU Bank index gainsThe PSU Bank index gained over 1 per cent amid reports that the policymakers are mulling a more liberal policy in allowing takeovers and mergers of PSU banks by corporates and foreign banks.“The idea that is aimed at opening up the banking system is at a very nascent stage," ET NOW reported. J&K Bank gained the most at 19.88 per cent. It was followed by Bank of India (up 6.41 per cent), UCO Bank (up 2.54 per cent), Indian Overseas Bank (up 2.13 per cent) and Central Bank (up 1.30 per cent). On the other hand, Bank of Baroda and PNB declined over half a per cent.BSE climbs nearly 7%Leading stock exchange BSE is mulling to sell a minority stake in its mutual fund distribution platform StAR MF, ET NOW reported quoting sources. Top fintech companies, banks and global investors are lined up for StAR MF platform stake, the report said during the day. Later, the scrip settled 6.97 per cent higher at Rs 558.45.LVB tanks 39% in four daysShares of Lakshmi Vilas Bank (LVB) slumped further and fell 10 per cent to hit a new 52-week low as investors' sentiment remained cautious. This is also the fourth consecutive session of loss for the lender’s stock as the sentiment was spooked after the government placed the lender under a one-month moratorium and superseded its board. The scrip has tanked 39 per cent to Rs 9.55 on November 20 from Rs 15.65 on November 14.Promoter action: Himadri Speciality ChemicalPromoter and director Shyam Sundar Choudhary disposed 32.34 lakh shares of Himadri Speciality Chemical on November 17-18, BSE data showed on Friday. Promoter Sheela Devi Choudhary also sold 7.63 lakh shares on November 18. The stock closed 5.40 per cent down at Rs 39.45.Promoter Annamma Philip of MRF sold 5,381 shares of the company on November 19. The scrip closed 2.88 per cent up at Rs 79,106.Gland Pharma lists at premiumGland Pharma made a strong market debut on bourses as the scrip got listed at Rs 1,710 on NSE, a 14 per cent premium over its issue price of Rs 1,500. Later the scrip closed the day at Rs 1,828.Stocks that hit fresh all-time highAdani Green shares, which settled nearly 5 per cent up at Rs 1,135, scaled its fresh all-time high of Rs 1,138 during the day. Kotak Mahindra Bank, Affle India, Supreme Industries, Ratnamani Metals and Tube Investments also hit their fresh record highs.Stocks that hit upper circuitsAs many as 325 stocks hit their upper circuit limits on BSE. Some of the companies in the list included J&K Bank, Wockhardt, Inox Wind, GE Power and DHFL, among others.Most active countersWith a total traded quantity of 55.96 crore shares, Vodafone Idea emerged as the most active stock on the NSE in terms of volume. It was followed by Uttam Value (20.48 crore), YES Bank (18.39 crore) and State Bank of India (8.44 crore). On the other hand, Reliance Industries (Rs 5,101 crore), Bajaj Finance (Rs 4,050 crore), Bajaj Finserv (Rs 3,394 crore) and IndusInd Bank (Rs 2,054 crore) stood among most active in terms of value.Stocks that gave ‘buy’ signalsAbout 28 stocks on NSE crossed above the signal line of MACD indicator, flashing ‘buy’ signals. They included Jaiprakash Associates, JSW Energy, Sun TV, Quess Corp, Shalby and Tribhovandas Bhimji, among others.Where is Nifty headed?Nagaraj Shetti, Technical Research Analyst, HDFC Securities, believes that the near term uptrend status remains intact and upside momentum is expected to continue after this small dip in the market. Hence, one may expect Nifty to move towards the new all time high of 12,963 levels by next week.“A decisive/sustainable move above 13,000 levels could open next upside targets of 13,500-13,600 in the near term. Immediate supports to be watched at 12,680-12,730 levels,” he said.
Categories: Business News

RBI working group for higher promoter stake

November 20, 2020 - 4:56pm
MUMBAI: The Reserve Bank of India’s internal working group constituted to review ownership in Indian private banks has recommended allowing promoters to hold 26% in banks over a period of 15 years. The working group in its proposal has also favourably looked at allowing industrial houses as bank promoters only after making legislative changes to the banking regulation act. It has also recommended increasing cap on non-promoter holding to 15% so as to bring a uniformity among all types of shareholders. RBI will now seek stakeholder comments on the report till January 15, 2021, after which it will examine the comments and suggestions before taking a view in the matter.“The cap on promoters’ stake in the long run (15 years) may be raised from the current level of 15% to 26% of the paid-up voting equity share capital of the bank,” the RBI said while releasing the recommendations of the internal working group. it’s internal group.The working group also noted that before granting licenses to industrial houses the issues of connected lending have to be ironed out. “Large corporate/industrial houses may be allowed as promoters of banks only after necessary amendments to the Banking Regulation Act, 1949 to prevent connected lending and exposures between the banks and other financial and non-financial group entities,” the working group noted in its recommendations. The internal working group set up in June 2020, is comprised of five members including PK Mohanty and Sachin Chaturvedi who are both directors on the RBI central board. Lily Vadera and SC Murmu both executive directors of RBI are also part of the group. The efforts to balance ownership and control comes as some private sector banks have sought a relaxation in licensing norms, citing the regulator’s decision on allowing Kotak Mahindra Bank promoter Uday Kotak to hold a 26% stake as long as the lender didn’t raise capital through a share sale.RBI’s 2015 licensing rules require the promoter of a private bank to reduce the holding to 40% within three years, 20% within 10 years and 15% within 15 years of operations starting. The rules previously allowed promoters to hold 49% but the regulator pushed for diversified ownership after the collapse of the Global Trust Bank. RBI approval is required for a holding of 5% and more in a bank.The working group has also suggested that large non-bank lenders with an asset size of more than Rs 50,000 crore, including those which are owned by a corporate house, may be considered for conversion into banks subject to completion of 10 years of operations. The group has also suggested that 3 years track record will be sufficient for those payment banks wanting to convert into a small finance bank. Some of the other recommendations suggest that small finance banks and payments banks will have to be listed within six years of reaching requisite networth as prescribed in the licensing guidelines or 10 years of commencement of operations whichever is earlier. The recommendations also suggest enhancing minimum initial capital requirement for licensing new banks from Rs 500 crore to Rs 1000 crore for universal banks, and from Rs 200 crore to Rs 300 crore for small finance banks.
Categories: Business News

Committee of Creditors to mull, finalize Lavasa takeover bids on Monday

November 20, 2020 - 4:56pm
MUMBAI: The Committee of Creditors (COC) of Lavasa will be meeting on Monday to consider and take a call on bids received from interested entities to acquire the country’s first proposed privately developed city. The resolution process is also expected to start immediately after that, said two persons with direct knowledge of the development."Friday is the last day for submissions of bids. We are expecting at least three to four bids. The committee of creditors will open the bids and take them into consideration at its meeting on Monday which is when we will have details on the bids," said a person familiar with the process.Last year a consortium led by Haldiram Snacks and two property developers, namely Pioneer Facor IT Infradevelopers and Sanar Property had expressed interest in bidding for the hill city. It is unclear whether they have submitted final bids.“All bids are expected only on the last day so we will wait for the day to get over. We are expecting some interest and hopefully the final resolution process can start immediately next week. There is a chance that some bidders may want more time to make their offer and the CoC may also consider the same,” said another person familiar with the process.Set up in 2000 by the Ajit Gulabchand-led Hindustan Construction Company (HCC), Lavasa was developing the country’s first privately developed city spread over 20,000 acres in Mulshi and Velhe areas in Maharasthra’s Pune district. However, the project has been entangled in various issues including environmental violations and land acquisition.After Lavasa and its subsidiaries defaulted on debt obligations, the lenders had sought for debt resolution through the National Company Law Tribunal (NCLT) in August 2018 under the Insolvency and Bankruptcy Code, 2016. As of January, lenders had claimed over Rs 7,700 crore from Lavasa Corporation and its subsidiaries.At the time of admitting it for the resolution process, Ajit Gulabchand-promoted Hindustan Construction Company (HCC) owned 68.7% stake in Lavasa. Other key shareholders included Gautam Thapar’s Avantha Group with 17.18%, Venkateshwara Hatcheries with 7.81%, and Vithal Maniar with 6.29% stake.Union Bank of India, L&T Infrastructure Finance, Asset Reconstruction Company of India and Bank of India are key lenders to the project.The Mumbai bench of NCLT had approved the request of Lavasa’s lenders to consolidate the township developer and its wholly-owned subsidiaries Warasgaon Assets Maintenance and Dasve Convention Centre as one. A consolidated entity will get better valuation when they are liquidated under the corporate insolvency resolution process (CIRP), the lenders had told the dedicated court.
Categories: Business News

Consumption outlook positive; convenience driving sales: says McDonald’s franchise executive

November 20, 2020 - 4:56pm
NEW DELHI: The consumption outlook is now positive, fuelled by good sentiment around the Covid-19 vaccine, Amit Jatia, vice-chairman of Westlife Development which operates quick service chain McDonald’s in the South and West, told ET in an interview.“A lot depends on what the government will do, and the dining-out sector has been completely dependent on unlock guidelines. But the worst is behind us,” Jatia said.Westlife Development, owner of Hardcastle Restaurants, the exclusive franchisee of McDonald’s restaurants in West and South India, is banking on the next two quarters to recover losses for the first six months of the financial year when India went into nationwide lockdown. Jatia said the chain may shut down a few stores in smaller malls which are unlikely to reopen, but that it would relocate stores to other malls or locations with high footfalls.McDonald’s South and West exited the month of September at 70% of pre-Covid sales and more than doubled overall sales over Q1FY21. Westlife Development attributed the recovery to a combination of factors including focus on rationalising costs, maximising efficiencies, and sales from convenience channels including deliveries, take-aways and drive-thrus.“The focus will be on convenience channels over the next few quarters, and we have upped the game on digitisation, though we had begun digitising our stores over two years back to drive convenience and efficiencies,” Jatia said.On the long-standing dispute between retailers and landlords over rentals and maintenance charges when the lockdown necessitated mass shutdowns of malls and restaurants, Jatia said since Westlife Development has largely revenue share arrangement with landlords, it hasn’t faced such issues with mall owners or its landlords.
Categories: Business News

Warren Buffett's firm buying big into drug stocks. Should you too?

November 20, 2020 - 4:56pm
NEW DELHI: Legendary investor Warren Buffett's Berkshire Hathaway has invested in four large drugmakers in the recent months.Latest investment data showed the Nebraska-based company bought into Merck & Co, Pfizer, Abbvie and Bristol-Myers Squibb during the September quarter. This has made domestic investors wonder whether domestic pharma stocks can still more returns on the back of the recent strong rally.While there are concerns as to whether pharma stocks are fully pricing in a Covid windfall, analysts suggest Indian pharma isn’t just a Covid theme, but beyond that. They still find many pharma stocks that can be bought at current levels.Nomura India has cut its weightage on the pharma sector, but still holds an overweight rating on it. In its latest equity strategy report, the brokerage said the earnings upcycle in frontline pharma companies -- after a significant downcycle over last 4-5 years -- is here to stay.The brokerage said the market would attribute higher valuation multiples to the pharma stocks, as there is further earnings visibility over next 12 months.The brokerage has limited its top picks to the frontline companies with sustained earnings recovery, such as Dr Reddy’s Labs, Lupin and Sun Pharma. It has removed Jubilant Life Sciences and Glenmark Pharma from its portfolio.Data showed the Sun Pharma stock has gained 63 per cent from its 52-week low of Rs 315 hit on March 23, but is still down 57 per cent from its April 2015 highs, as per the adjusted price data available with AceEquity.In the broader market, equity benchmarks Sensex and Nifty have been hitting new highs every other day.Lupin shares have climbed 79 per cent since March 19 but are down 57.4 per cent from its October 2015 levels.The stock of Dr Reddy’s, meanwhile, hit a fresh record of Rs 5,514.65 but is still trading 11 per cent below those levels. Jubilant Life Sciences has recovered 206 per cent from its 52-week lows, while Glenmark has gained 189 per cent. The two stocks are down 30-60 per cent from their lifetime highs.“Covid-19 might have given pharma an additional tailwind, which got reflected over the past quarters and might even show up in a couple of quarters more to come, but that will normalise going forward. The domestic pharma companies have done a wonderful job in cutting costs. There might be some bunching up of orders partially due to Covid, but the undeniable fact is India is fast emerging as a generic powerhouse,” he said. Dharamshi said the pharma pack may see some consolidation rather than a steep correction in the pharma sector, until the story starts picking up again. “We are not very sure what percentage of growth that we have witnessed in the past couple of quarters will sustain. Once the market gets a better sense of that, there will be more to come. Pharma can give very good returns even from here on,” he said. Credit Suisse said India aims to administer 40-50 crore vaccine doses by July-2021. The key vaccines India is banking on are from Oxford/AstraZeneca, Novavax and J&J (temperature range is 2-8°C) and the earliest efficacy data is expected by end of November 2020 and December 2020, while vaccines can be rolled out in January in the best-case scenario.The global brokerage said Aurobindo’s large viral vector vaccine facility (30 crore doses) should be ready by March-April next year. “The pricing could be higher in the export markets than in India, and profitability could be at Rs 20-25 per dose. Therefore, on a 30 crore dose capacity, Aurobindo could benefit from a potential Ebitda of Rs 600-750 crore, which would be 12-15 per cent of FY22 Ebitda,” it said. This brokerage has upgraded Aurobindo stock to ‘outperform’ from ‘neutral’.It said Cadila also has a facility to make 10 crore doses, but it is for DNA vaccine and, therefore, it would not be able to manufacture vaccine from global players in the near term. “Cipla and Cadila have benefitted the most from the sale of Covid-19 treatment drugs (especially Remdesivir) during the September quarter and volume should drop substantially in FY22 on rise in vaccination,” CS said.Ajay Srivastava, CEO, Dimensions Corporate Finance, wants to play the M&A theme in the pharma space with Tier-II stocks.“You will not find the kind of returns coming from Sun and Dr Reddy’s; they will disappoint you. Shift your portfolio down to tier-II pharma companies more on the manufacturing side, which are going to get a major boost including the PLI. Do not lose hope on pharma. It is there to stay and you will get lots of good surprises from takeovers. PE players are gunning for those companies. Buy and keep, and you will get an offer very soon in the mail,” he said.
Categories: Business News

2020 witnessed once in a century swings in markets: Morgan Stanley

November 20, 2020 - 4:56pm
Mumbai: Global economies and the capital markets across the world saw “once in a century” swings but 2021, is all set to bring in normalcy, a Morgan Stanley research said Friday.Global equities and economies saw a drastic fall this year as Covid pandemic and lockdowns implemented in many large economies including India. Next year, is set to see the recovery. “Trust the recovery, and the post-recession playbook,” the research said.The economic swings in some way were similar to 2010 the research pointed out. “2010 followed a terrible recession and an aggressive policy response. It dawned with a still-weak economy, the Fed at the zero lower bound and a significant outperformance of ‘liquid’ indices such as CDX IG and the S&P 500 relative to equity volatility or securitized credit. It saw a major growth scare and a 15%+ correction in global equities. But 2010 was ultimately a solid, above-average year for returns,” it added.The research said that across the world equities are set to grow in the coming years and investors need to trust the process. “Across regions, we see 25-30% EPS (earning per share) growth and double-digit total returns through end-2021. We expect US small-caps to outperform large-caps,” the research said.
Categories: Business News

SBI revises Q2 GDP estimates to -10.7%

November 20, 2020 - 1:55pm
New Delhi : Citing continuous revisions in India's GDP estimates as the current norm, State Bank of India (SBI) revised their second-quarter (Q2) GDP to -10.7 per cent from -12.5 per cent with a positive bias, in a research report from SBI Ecowrap on Friday. The report titled, "Positive events improve India's Q2 GDP projections: Losses reduced but reasons to remain cautious remain," was authored by Dr Soumya Kanti Ghosh, SBI's Chief Economic Adviser. "We are revising our Q2 GDP growth to -10.7 per cent (earlier -12.5 per cent) with a positive bias, based on our nowcasting model with 41 high-frequency indicators, associated with industry activity, service activity, and global economy. Our estimate of Q2 Financial Year (FY) 2021 (or Q3 2020) is aligned with the economic growth seen by various economies in Q3 2020. The GDP contraction halved in Q3 2020 compared to Q2 2020 for select 18 economies," stated the report. According to it, the upward revisions reflected faster recovery and the estimates could be better if July and August showed a little bit of traction. The SBI business activity index showed continuous improvement and expected Q3 numbers to be even better. "However, the extent of recovery in subsequent quarters could only be gauged after the actual Q2 numbers were published," the report stated. The Ecowrap report said there was no doubt that the country's economy had suffered and the scarring still remained. The Micro, Small and Medium Enterprises (MSME) sector borne the brunt of the COVID-19 pandemic and the Export Promotion Capital Goods (ECLGS) scheme was a shot in the arm. The report also highlighted that corporate results remained good and growth in corporate GVA of 3,640 listed entities was at 22.06 per cent year on year (y-o-y) for Q2 FY21 and size-wise analysis based on turnover showed resilience in small and medium enterprises. The SBI Ecowrap reiterated that despite the reduction in losses, one should remain cautious in the present scenario. "Although the GST numbers provide cheer as in October 2020, it showed 10 per cent y-o-y growth and is expected to be healthy, the true picture will emerge when GDP data comes," the report added. It further said future prognosis depended on two things -- the shape of the recovery from COVID-19 infections and how fast the vaccine was rolled out. "The current trends of COVID-19 infection show the cases in India peaked in September. With Unlock 5.0 and festival season till December end, the chances of possible second wave will increase. With domestic vaccine entering Phase III and one more phase to go, COVID-19 recovery will be contingent on how fast the vaccine is rolled out and consumer confidence is restored. The best estimate of full recovery in consumer confidence can be placed in Q3," the report concluded.
Categories: Business News

Kalpataru to invest Rs 350 crore to build over 200 premium flats in Mumbai

November 20, 2020 - 1:55pm
New Delhi: Realty firm Kalpataru Ltd will invest Rs 350 crore over the next three years to develop a premium housing project in Mumbai as it sees revival in demand supported by lower home loan interest rates and property prices. Kalpataru Ltd, which is part of diversified business house Kalpataru group, on Friday said it has started the second phase of its housing project 'Kalpataru Vienta' in Kandivali (East), Mumbai. The company will build more than 200 housing units in the second phase of this project. The construction work will start this month and possession is expected in early 2024. "Nearly 5 lakh sq ft area will be developed in the current phase at an estimated cost of Rs 350 crore," Kalpataru Ltd said in a statement. The prices for 2BHK start at Rs 1.7 crore while prices for 3BHK start at Rs 2.4 crore. Kalpataru Vienta is spread across 2.4 acres. The first phase comprising over 170 units was launched in January 2020. "Customer confidence has witnessed a strong turnaround on the back of interest rate softening, schemes and strong policy support for the homebuyer. With average saving in the range of 8-10 per cent for the homebuyer, prices have hit a historic low, making this the best time to invest in real estate," Kalpataru Ltd MD Parag Munot said. Kandivali East is one of Mumbai's greenest and best-connected micro markets, he said. Housing sales have improved in the Mumbai Metropolitan Region (MMR) and Pune after the Maharashtra government reduced stamp duty on registration of properties to boost sales, which were badly impacted during April-June period because of COVID-19-induced lockdown. According to housing brokerage firm PropTiger, sales in July-September rose 85 per cent from the previous quarter. Kalpataru Ltd has real estate projects at Mumbai, Thane and Panvel in the Mumbai Metropolitan Region (MMR), Pune, Hyderabad, Noida, Indore and Lonavala. Founded in 1969, Kalpataru Ltd is part of the Kalpataru Group that has interests spanning real estate, power transmission and distribution, civil infrastructure and logistics. The group has a project footprint spanning over 50 countries.
Categories: Business News

Theatres reopened but workers continue to suffer due to low footfalls

November 20, 2020 - 1:55pm
Mumbai: Cinema halls and multiplexes have reopened after eight months but business is slow due to a number of factors like lack of new Hindi film releases and fear among the people regarding sitting in an enclosed areas with others amid the ongoing Covid-19 pandemic. As a result, the low paying workers associated with cinema halls and multiplexes, have been directly hit.For some, there has been a pay cut since the lockdown happened. Many others have just lost their jobs and are waiting for new opportunities. Many of these workers are migrants in the big city, and the sole bread winners of their families.Himanshu Kumar from Bihar's Saran, who has been working at a multiplex in Bengaluru as an electrician for two years, had his payment reduced to 40 per cent during the lockdown and is still not getting his due. Talking about the same, Himanshu told IANS: "Although the multiplex was shut during lockdown, the CCTV cameras and fire extinguishers were on. I had to go and check these once in every 10 days. During lockdown, I was getting 40 per cent of my total pay, which has slightly increased in November, but I am still not getting my full payment."The migrant worker further informed that he is looking for a job with better pay options because he has to take care of his mother, elder brother and sister-in-law back in his hometown. "I will continue for two to three months more and then look for better payment options," Himanshu informed.Arijit Shil used to work as a security guard at a multiplex in Madhyamgram in the outskirts of Kolkata, but he lost his job after theatres shut down."I have worked as a security guard in the multiplex for over a year. When lockdown began, the theatre was shut, so we were out of work for four months. When the theatre reopened after lockdown, they retained only around six people who have been associated with the multiplex from the beginning. I have been told that my services will be required only when the theatre starts getting footfalls," he said.Arijit's wife, a homemaker, has taken up a job to support her husband because he is no longer getting the monthly paycheque of Rs 10,000 that he used to earn from his job as a security guard.He added: "I sat at home for the four months of lockdown. Then I worked at the packaging department of a herbal products company for two months on a contractual basis. Now, I am again looking for work. I called up my agency today asking them for work as I desperately need money. Meanwhile, my wife, who was a homemaker has started working at a garments manufacturing unit to help run our household." Arijit and Himanshu represent the countless number of workers from different parts of the country associated with cinema halls and multiplexes, who have a similar story to tell. While cinema hall and multiplex owners wait for the audience to turn up, workers at these properties are busy figuring out how to earn their bread. The coronavirus pandemic has affected them too, but in a different way.
Categories: Business News

980 NSE stocks trade above 50, 200-DMAs. What does it mean?

November 20, 2020 - 1:55pm
The ongoing rally in domestic stocks this November has significantly widened the distance between Nifty and its 50-day, 100-day and 200-day moving averages (DMAs), indicating strength in the bull run.The 50-share Nifty has jumped 10 per cent to 12,772 as of November 19 from the October 30 close of 11,642. This rally has also taken 980 stocks, which accounts over half of the active stocks in NSE’s listed universe, well above their short and long-term moving averages. 79317148Among individual stocks, Aarti Industries, Aarti Surfactants, Adani Gas, Adani Green, Aurobindo Pharma, Balkrishna Industries, Bata India, Gillette India, Globus Spirits, Hindustan Zinc, HDFC, ICICI Bank, ICICI Lombard General Insurance, Jindal Steel, Larsen & Toubro, Snowman Logistics, SBI, SpiceJet and Tata Motors are all trading above their respective 50 DMAs, 100 DMAs and 200 DMAs. 79317160 79317172In general, traders and investors use three major daily moving averages – 50-day, 100-day and 200-day – to spot trend in a stock or an index. When a stock trades above all these DMAs, it is supposed to signal an upward trend. They provide useful information about support and resistance levels.The 50-,100- and 200 DMAs are used most commonly by traders and analysts. They are used to identify short-term and long-term trends and work as key support and resistance levels for the index.“Traders tend to prefer 50 DMA and 100 DMA while investors tend to use the 200-DMA more to identify trends. The 200-DMA is a key indicator that determines an overall long-term bull market. Thus whenever an underlying asset takes support or surpasses the 200-DMA, it gives a clear signal of trend reversal and of the right time to enter a stock,” said Nilesh Jain, Technical and Derivatives Research-Equity Research, Anand Rathi Shares and Stock Brokers.The 200-day moving average, also known as long-term moving average, acts as a crucial support for an index or a stock, while the 100-day average reflects a six-month timeframe and the 50-day average measures a quarter.Some analysts caution market participants to not use moving averages in isolation. There are various other methods in which such averages and their combinations can be used to gauge the strength and a likely shift in trading momentum.Mazhar Mohammad, Chief Strategist for Technical Research & Trading Advisory at Chartview India, said when a stock trades above 50-, 100- and 200-day moving averages, it means the scrip is in a strong uptrend.“But this should not be the sole criteria to decide an entry point. Such stocks can provide great opportunity on corrections, especially when they reach, respect and bounce back from the said averages. Apart from these averages, traders should also make use of other technical indicators while deciding exit and entry points,” he said.Other indicators such as Relative Strength Index (RSI), Bollinger Bands, Fibonacci Series, MACD, candlestick patterns and stochastic can also be used to make a buy or sell decision.Milan Vaishnav, Consulting Technical Analyst and Founder, Gemstone Equity Research and Advisory, said high-beta stocks that have seen a sharp run-up should be avoided at this point.“One should look at stocks with good RSIs. We like pharma, consumption and non-discretionary sectors,” he said.Stocks like Adani Power, Adani Ports, Aditya Birla Capital, Wipro, Voltas, V-Mart Retail, Wonderla Holidays, VIP Clothing, Varroc Engineering, TVS Motor Company, TCS, Tata Elxi, Tata Steel Long Products were seen trading above these moving averages on Thursday. 79317191 79317197“Whenever a stock surpasses all the short-term and long-term moving averages, it reflects a strong uptrend and further momentum. So it is always advisable to give importance to all the moving averages for trading as well as investing. As a thumb rule, if the price is above the moving averages, the trend is upward and if the price is below the moving averages, the trend is downward,” Jain said.Considering the prevailing bullish trend in the market, Jain said he is bullish on Bata India, Bharat Forge, DLF, Avenue Supermarts, Jindal Steel, Siemens and Voltas.Ashis Biswas, Head of Technical Research at CapitalVia Global Research, said momentum indicators RSI and MACD are both showing negative divergence as of now. “If Nifty goes below 12,750 level, it may open the gate for a movement till the 12,510-12,520 zone. From a short-term perspective, we retain our cautious stance as the current rally is not supported by other bullish technical evidence,” he said.
Categories: Business News

As companies seek to reboot post Covid, demand for CDOs, CIOs and CFOs rises

November 20, 2020 - 1:55pm
MUMBAI: Demand for chief financial officers, chief information officers and chief digital officers are on the rise as companies seek to reboot from the disruption caused by the Covid-19 pandemic.Companies are looking for new age CFOs who have an expertise both in operations and can also drive future growth into new business areas, said search industry experts. At the same time, companies are also looking at technology leadership in top management which is leading to the rise in demand for CIOs and CDOs, experts said.“The entire spectrum of business is changing post-Covid. Companies are looking for CFOs who have a deal mindset and can explore new growth areas,” said R Suresh, founder of specialist CXO search firm Insist. “Companies are looking for someone who has a blend of operations and growth experience – someone who can do M&As, debt restructuring, and private equity deals,” said Suresh.“The role of the CFO is also becoming critical because companies need to look at cost optimization and that needs a different set of skill sets,” said Ronesh Puri, managing director, Executive Access.CDOs and CIOs are becoming more critical as most companies are undergoing a digital transformation. “Covid 19 has accelerated the process of digitization by several years and companies are looking for senior leaders who can streamline and strategise their digital transformation,” said Aditya Narayan Mishra, director and CEO of CIEL HR Services. “Online business of most companies are almost 3-10 times of what it was pre-Covid. Hence companies need leadership talent with digital acumen and agility,” said Puri.Search experts said that the overall CXO hiring market is back at 70-80% of the pre-Covid level, with focus on profiles such as sales, technology and finance. “Marketing function still remains muted as not too many brand launches are happening,” said Puri.Industries that have bounced back faster as far as demand for leadership hiring include Fast moving consumer goods (FMCG), manufacturing, ecommerce, automobile and to some extent banking and financial services (BFSI) and insurance. The ones that still remain muted are hospitality, travel and tourism, aviation, among others.“People who are more adaptable and think out-of-the-box are the ones that will command a premium,” said Puri.“There is a lot of focus on CXOs and CEOs who have a technology mindset as digital is no longer limited to technology companies but businesses across sectors are looking at increasing the digital element while lowering human intervention,” said K Sudarshan, managing director, EMA Partners India. “We are looking for a couple of CEOs in the consumer tech space who can look at technology to solve business problems,” he said.
Categories: Business News

Georgia confirms Biden's victory in state

November 20, 2020 - 10:54am
WASHINGTON: Georgia confirmed Democratic President-elect Joe Biden as the winner of the Nov. 3 election in the state as it completed a hand audit of ballots on Thursday, Secretary of State Brad Raffensperger said.The audit, launched after unofficial results showed Biden leading Republican President Donald Trump by about 14,000 out of more than 5 million votes cast, ended with Biden winning by 12,284, according to data from Raffensperger's office."The audit confirmed that the original machine count accurately portrayed the winner of the election," the secretary of state's office said in a statement on Thursday evening.The changes to the vote totals were "well within the expected margin of human error that occurs when hand-counting ballots," it said.Biden was the first Democratic presidential candidate to carry Georgia since Bill Clinton in 1992. Biden has captured 306 electoral votes to Trump's 232 in the state-by-state Electoral College that determines the winner of the election, well above the 270 needed for victory.Raffensperger, a Republican, is expected to formally certify Biden's victory on Friday, despite pressure from Trump, who has claimed without evidence that there were widespread irregularities and fraud in states that he lost to Biden, including Georgia.The state's Republican U.S. senators, David Perdue and Kelly Loeffler, who both face runoff elections in January, have joined with Trump in accusing Raffensperger, without evidence, of overseeing a flawed election, an allegation Raffensperger has disputed.Raffensperger told a local TV station that the Trump campaign had not produced evidence to back up its claims of fraud in the state.“We have not seen any evidence they have given us, anything that supports - it just doesn’t show up,” Raffensperger told WSB-TV.Trump's campaign can still request a recount in Georgia after the results are certified because the margin of victory was less than 0.5%.
Categories: Business News

Edible oil prices rise by up to 30%, set off alarm bells

November 20, 2020 - 10:54am
NEW DELHI: Rising edible oil prices has become a cause of concern for the government. The average prices of all edible oils - groundnut, mustard, vanaspati, soybean, sunflower and palm - have increased, with the spike in the case of palm, soybean and sunflower oils by up to 20-30% in the last one year.Sources said this was flagged at a presentation before a Group of Ministers headed by home minister Amit Shah early this week. They added while prices of onion have reduced due to import of nearly 30,000 tonnes and potato prices have stabilised, edible oil prices have been increasing constantly.Data accessed from the consumer affairs ministry's price monitoring cell show that the average price of mustard oil was 120 per litre on Thursday compared to 100 a year back. In the case of vanaspati, prices have increased to 102.5 per kg against 75.25 a year back. The modal price of soybean oil was selling at 110 per litre while average price on October 18 in 2019 was 90. Similar has been the trend in the case of sunflower and palm oil. 79311218Sources said the reduction in palm oil production in Malaysia in the past six months has been one of the reasons behind increase in prices of other edible oils. Nearly 70% of the palm oil in the country is used by the processed food industry, which is the biggest bulk consumer. Industry sources now said it's up to the government to take a call whether to reduce the import duty on palm oil considering that the increase in palm oil prices directly impacts prices of other edible oils.
Categories: Business News

Hybrid tech, new wave of reforms will help India transition to renewable energy, say experts

November 20, 2020 - 10:54am
The Economic Times brought together corporate leaders from the clean energy sector, a leading consultant and the head of the energy vertical at Niti Aayog to discuss the challenges and solutions in the major transformation underway in the energy sector – from the domination of the stable, reliable but polluting fossil fuels to the rapid expansion of wind and solar energy, which is clean and renewable but very intermittent. The panelists and the government official agreed that a new wave of policies, reforms and regulations, along with the use of hybrid technology will help India adjust to renewable energy’s transition from being a small add-on in electricity supply to being its major and fastest-growing component. Edited excerpts.Mr Ram, how prepared is India’s power sector for the massive growth in renewable energy?Rajnath Ram, advisor, energy, Niti Aayog: We have planned this transition in a very smooth manner. A CEA report says that renewable energy up to 17%, with the existing grid, there are no major issues in integration. If we move to the higher share of renewable energy, certainly you need balancing. We are looking for batteries storage, pump storage and other kind of storage solutions for balancing. And we are coming out with the advanced chemistry cell battery manufacturing policy that is under final stage. 79314361 Vipul Tuli, Renewables will exceed that landmark of 17%. What policy initiatives are needed, and is hybrid technology the solution?Vipul Tuli, Managing Director, Sembcorp Energy India Ltd: I think we are now at the stage where the next wave of rules, reforms and regulations are required to take us to, let's say, 20% and beyond. I think, as renewables move from being sort of just something that fills in the gaps here and there to being something very mainstream, the question of reliability and scale comes to the fore. Hybrid is certainly one of the very core solutions, but not the only solution. 79314378Alok Nanda, Vipul said hybrids are not the only solution. Do you agree?Alok Nanda, CEO for GE India Technology Centre: There are three basic aspects for any nation when it comes to energy: Energy security, environmental concerns and cost of electricity. As we transition to more penetration of renewables, hybrids is inevitable because of these factors. If we only have one source, which is intermittent in nature, like most of the renewables are, that's something which takes that capacity utilization factors really low. If you combine the sources of energy and you combine them with the help of technology, like one of the technologies that we have … you utilize your energy sources more optimally. From that perspective, hybrids are inevitable.Ashish Khanna, your company is very strong in coal, and getting stronger by the day in renewables. What are your thoughts on the inevitability of hybrids.Ashish Khanna, President, Renewables, Tata Power: More of renewables is now focused towards solar and more and more solar is now commoditized. Rather than the quality of power, the competitiveness of the tariff is something everyone is now focusing on. If you look six years back, in solar we are virtually 8-10x. Unprecedented in our infrastructure segment to have a growth of this nature. Wind has also been steady. Is this growing on a standalone basis? Are we going to miss all the infrastructure on which we have already invested say, thermal fossil fuel infrastructure. Should we just forget about it? 79314385Mr Ram, you should respond to policy issues raised by panellists.Rajnath Ram: Mr. Ashhish Khanna said we are looking more towards the solar than wind. But kindly remember that before solar took off, wind was the highest one. There was some change in the policy regime moving from feed-in tarrif to the competitive bidding, There were some issues which crop there, because the supply chain was getting much affected. So, that was the one reason but nevertheless, now the government is coming out with the streamlining the sector and we are coming out with the manufacturing policy also. The issues he has raised thermal, which are already in place, is an issue. The CEA has notified about 25 GW plants they should retire in due course of time.While hybrids seem inevitable, companies seem more excited about plain-vanilla solar tenders. What is the reason, Vinay?Vinay Rustugi, Managing Director, Bridge to India: Some recent solar tenders have been massively oversubscribed. The reasons are very simple. Land and transmission challenges for wind projects are much more acute than for solar projects. Solar technology is much more widely available and solar power is cheaper. Wind is a more complex. There are only about two or three proven suppliers in the country. So to get assured supply from them at the acceptable kind of cost levels is a major challenge. But I believe the days of plain solar are going to be much more limited. I think everybody is talking about hybrid technology, which is obviously needed to grow renewables.79314516Vipul, how optimistic are you that, the sector will get reformed and renewables will evolve in the right way with necessary support?Vipul Tuli: On a lighter note, you have to be optimistic if you want to operate in the power sector in India. But very often the good work gets ignored. I'll just give you examples. Our national grid, it is one of the most phenomenal global power assets that exists. If you look at the speed, scale and costs at which renewables have been developed, that's very noteworthy. And, from the discoms physical losses have fallen (significantly). So, overall, I would say I’m optimistic.Alok, with the challenges that wind energy is facing, how do we combine various sources to give reliable power?Alok Nanda: Solar is the least cost, gas is the highest efficiency, and coal has available infrastructure. If you take all these things together, you put in the technology of a good control engine backed by data based machine learning based algorithm based optimizer, there is nothing better than that. If you don't utilize all the sources of energy to their optimal, we don't make a smoot transition.Vipul Tuli: You need the solar because it's cheap and plentiful; wind because it's the only scalable, renewable that's there at the peak when we really need the power. You need the conventional, that's absolutely necessary, because there is no viable storage technology at that scale yet, and you need it for reliability. There's lakhs of crores of investment in those and as their PLF goes lower and lower as solar and wind eats into those, you have to have some solution to transition those out. Because otherwise they'll simply shut down and they're not available for support.Ashish Khanna: Let us put across two facts on the table. Let's appreciate that on 9th April, when we had 9 minutes of shutdown, the country did phenomenally well. So it's not that the country is not in a position to take the load's ups and downs, which is unprecedented. I would like to add that when you actually take the load cover of cities and the generation of solar and wind, and we have done that exercise ourselves for many cities here, they complement each other. That's where the natural hybrid comes. The fact remains that in the gaps that come in, how would you fill that gap in? And what is the most cost-optimum solution for that gap? You can fill it through that storage, or you can fill it through some other power that can quickly ramp up or ramp down. Gas is not a solution for us, which is available in many other parts of the world.Companies have conflicting views on this because India has a shortage. Vinay, as a consultant, you would have an independent view.Vinay Rustugi: The government should specify that this is the amount of power needed during these hours for this much time etc, and you can provide it from whatever sources, provided of course there is compliance with RPO at the consumer end, and carbon emission generation at the supply end.Rajnath Ram, would this suggestion be acceptable to the government?Rajnath Ram: Some of the suggestions are excellent, combining the different options for providing firm power. Vipul has mentioned that wind can be a better solution with solar, thermal can be a better solution. Basically, we have to look at all the aspects. Wind is also very site specific, it is not available across the country. We have to look at thermal, we have to look somewhere for pump hydro to be available. Somewhere, where the other sources are not available, the other options can be explored. Battery could be one of the solutions.Let me put forward one major question here. We are picking up 450 GW by 2030, but our manufacturing base is very limited. We have about 2 GW of solar cell manufacturing, and some more capacity for panels. We cannot only rely on imported equipment for this huge target. We are working with MNRE for a solar cell manufacturing policy for cutting-edge technology. In wind sector, after having the tariff-based bidding process, a lot of industries had finished. We need to really work on that area.Ram, you had mentioned a policy for storage. How adaptable and flexible would be policy be?Rajnath Ram: There can't be a one-fit solution for all. We have to really explore the multiple kinds of storage solutions, depending on the evolution of the industry. We engaged World Bank to assess the demand for the country. Some of the states are evaluating, and the report might be coming out by end of November, or early December.
Categories: Business News

WFH to stay preferred mode of work in 2021

November 20, 2020 - 7:53am
NEW DELHI: Companies are reviewing working arrangements nearly eight months after the pandemic took hold. But with no clear timetable for the mass availability of vaccines, most have no option but to further extend work-from-home (WFH) arrangements, some more than others.Last week, Flipkart and Myntra announced the extension of WFH until May 2021.EY has extended it until June while Whirlpool has done so to the end of this year. Mahindra and Mahindra will continue with WFH for another two-three months at least.Tata Power and Schneider Electric will have most staff on WFH along with a hybrid work model. “We took a closer look at the Covid situation and how it has evolved over the last few weeks, and decided on extending remote working till May 31,” said Myntra CEO Amar Nagaram.EY’s offices have been open for the past five months but WFH is the preferred mode of work.“We are encouraging employees to WFA/H (work from anywhere/home) at least till June next year,” said Sandeep Kohli, partner and talent leader, EY India. “Post which we are putting in place a hybrid working model, where employees can work from office for two-three days and rest of the week from home.”79313908‘Assessing Situations’A Flipkart spokesperson said, “The decision to extend our work-from-home mandate comes on the back of multiple scenarios and new personal priorities that have emerged due to the pandemic.”Deloitte is continuing WFH at least until the end of the year. But employees can also work from the office after prior booking of seats through the in-house portal. “This helps the admin take stock of headcount at any given time in order to adhere to social distancing norms at offices,” said SV Nathan, partner and chief talent officer, Deloitte.As part of Tata Power’s hybrid work model, about 45% of employees come to office on a daily basis, 35% on a rotational basis and 15% —mostly technical, finance and support staff — work remotely.“We are assessing situations in every location and making changes accordingly,” said Himal Tewari, CHRO, Tata Power. For instance, after the surge in cases in Delhi-NCR, “we have temporarily reduced the staff coming to office and (some) are on rota or working remotely.”Schneider currently has about 30% employees coming to the office — largely commercial, sales and manufacturing staff. The company is looking to raise that to 50% in January.“The idea is to have half the employees working from offices depending on the pandemic situation and how it pans out,” said Rachna Mukherjee, CHRO, Schneider Electric, India and South Asia.Breaking MonotonyPaytm recently started paying allowances to employees to function from co-working spaces. “As a means to break the monotony of working from home, where needed, we have started the initiative to let our colleagues take up desks in co-working spaces so that they can work together with their teams,” said Rohit Thakur, CHRO, Paytm. This is also aimed at avoiding the crowding of offices while providing safe work options to employees.White-collar employees at Mahindra and Mahindra are currently working from home.“This arrangement is to continue at least for next two-to-three months,” said Rajeshwar Tripathi, CPO, Mahindra and Mahindra. “We are in no haste to open our offices and would assess the situation regularly.”Companies are strengthening work from anywhere (WFA) practices. For instance, Myntra has defined core working hours and a ‘no meeting day’ once a week to allow employees to balance personal and professional lives.
Categories: Business News

Adani’s wealth grows most on India rich list

November 20, 2020 - 7:53am
Mumbai: Gautam Adani’s personal wealth, as reflected in his share of the Adani Group market cap, has risen the most in 2020 when compared with other Indians of similar standing. Adani’s wealth has risen $19.4 billion so far in 2020 to $30.7 billion with six listed companies adding $ 27 billion (Rs 2.01 lakh crore) in market cap since January this year. Adani is the world's ninth-biggest wealth creator, ahead of Steve Ballmer, Larry Page and Bill Gates.Adani is closely followed by Mukesh Ambani of Reliance Industries whose personal wealth, as reflected in his share of the Reliance group market cap, rose by $16.9 billion. Elon Musk of Tesla leads the table with his wealth surging $92 billion to $120 billion so far in 2020; while Jeff Bezos (of Amazon) and Zhong Shanshan’s (of Nongfu Spring) wealth has risen by $68 billion and $57 billion, respectively.Gautam Adani’s billions have been made possible by surging share prices of Adani Green, Adani Enterprises, Adani Gas and Adani Transmission. Adani Green Energy shares have jumped 551 per cent in 2020, while Adani Gas and Adani Enterprises shares have rallied 103 per cent and 85 per cent, respectively. Adani Transmission and Adani Ports have gained 38 per cent and 4 per cent, respectively, during this period, while Adani Power declined by 38 per cent.Interestingly, Indian mutual funds have shown very little interest in Adani Group stocks despite the sharp run-up in share prices. Some mutual funds hold 4 per cent in Adani Ports and 1 per cent in Adani Enterprises but no shares of other companies.Gautam Adani who started his commodity trading business in 1988 at the age of 32, today owns ports, airports, energy, resources, logistics, agribusiness, real estate, financial services and defense businesses among others.
Categories: Business News

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