Author: Yashi Gupta

RBI to introduce Digital Rupee using blockchain starting 2022-23

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FM Nirmala Sitharaman announced that the Reserve Bank of India (RBI) will issue a Digital Rupee using blockchain and other technologies starting 2022-23. This will give a boost to the economy, FM Sitharaman in her budget speech.

“Introduction of Central Bank Digital Currency (CBDC) will give a big boost to the digital economy,” Sitharaman said adding that “digital currency will also lead to a more efficient and cheaper currency management system.”

Meanwhile, Sitharaman also announced levying a 30 percent tax on crypto gains. She said while computing such income, no deduction can be incurred, except the cost of acquisition. Investors cannot set off the losses from the transfer of cryptos or other digital assets against any other income, she added.

Also Read | Budget 2022: Govt to levy 30% tax on crypto gains; gifts to be taxed as well

“India is finally on the path to legitimising the crypto sector in India. It’s phenomenal news that India is launching a blockchain-powered Digital Rupee. This move will pave the way for crypto adoption and put India in the front seat of innovation,” Nischal Shetty, Founder and CEO, WazirX told CNBC-TV18.

“It is also interesting to note how our government is beginning to recognise crypto as an emerging asset class given how our FM was referring to it as a virtual digital asset,” Shetty added. However, he said, the biggest development was clarity on crypto taxation.

Further, Sitharaman proposed a TDS of 1 percent on the transfer of digital assets. Moreover, gifts in the form of the virtual digital asset will also be taxed in the hands of the recipient, she added.

“This (Crypto taxation) will add the much-needed recognition to the crypto ecosystem of India. We also hope this development removes any ambiguity for banks, and they can provide financial services to the crypto industry,” Shetty added.

Sitharaman said in recent years, digital banking, digital payments, and fintech innovations have grown at a rapid pace in the country and the government is encouraging these sectors to ensure the benefits of digital banking reach every order of the country.

For all the latest updates on Union Budget 2022, follow our LIVE blog here. For full coverage of Union Budget 2022, click here

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Budget 2022: India to introduce new battery swapping policy in EV push

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Finance Minister Nirmala Sitharaman announced introducing a new battery swapping policy and setting up interoperability standards, considering space constraints in the urban areas for setting up charging stations at scale. She also said the private sector would be encouraged to develop sustainable business models for the ‘battery as a service’ or ‘energy service as a service’ model, amid a broader push to meet decarbonisation goals.

The government has been trying to cut India’s total projected carbon emission by 1 billion tonnes by 2030.  To achieve these targets, the government wants to push the adoption of EVs in the country. However, rising input costs for batteries and insufficient charging structures are major roadblocks for the industry.

“Considering the constraint of space in urban areas for setting up charging stations at scale, a battery swapping policy will be brought out and interoperability standards will be formulated,” Sitharaman said.

Battery swapping allows drivers to replace their discharged batteries with freshly charged ones at swap stations. This method of recharging batteries is faster than charging the EV.

Also Read | How battery swapping technology can make electric cars affordable

She further said the government will promote a shift to use public transport in urban areas. “This will be complemented by clean-tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EV vehicles,” Sitharaman added.

She also spoke about including data centres and energy storage systems, including dense charging infrastructure and grid-scale battery systems to the harmonised list of infrastructure. “This will facilitate credit availability for digital infrastructure and clean energy storage,” she added.

Experts believe this inclusion of gird storage and dense charging into the harmonised list “will help mobility start-ups and IPPs to explore low-cost financing,” Sumant Sinha, Chairman and CEO of ReNew Power said.

For all the latest updates on Union Budget 2022, follow our LIVE blog here. For full coverage of Union Budget 2022, click here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Opening Bell: Sensex, Nifty open a strong note ahead on budget day; Tata Steel, Infosys in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian equity benchmark indices opened higher following positive cues from the global markets on the budget day, extending gains from the previous session.

The Sensex opened 1.14 percent or 658 points higher at 58,672. Nifty50 index opened at 17,375 — up 190 points or 1 percent. The broader market indices were trading higher as well.

Among sectors, Nifty Auto and Nifty Oil & Gas sectors were under selling pressure. Nifty Private Bank was up over 1.5 percent, Nifty Bank rose over 1.5 percent. Nifty IT index was up over 0.5 percent. Bluechips leading the gains on Sensex were Tata Steel, Infosys, Tech Mahindra, ICICI Bank, and HCL Tech.

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Globally, Asian shares were rising tracking a positive closing on Wall Street and investors were focusing on India’s budget and Australia’s interest rate decision. MSCI’s broadest index of Asia-Pacific shares outside Japan was up over 0.2 percent.

Japan’s Nikkei was up over 1 percent. And US stock futures, however, declined with Dow Jones Futures down over 0.25 percent despite an overnight rally on Wall Street. Overnight, the Nasdaq index surged over 3 percent and both S&P 500 and Dow Jones closed 1 percent higher.

Over in commodities, US crude oil was up over 0.2 percent to $88.34 and the Brent crude oil was up over 0.2 percent just below $90. And spot gold was flat at 1,796.

(With inputs from Reuters)

For all the latest updates on Union Budget 2022, follow our LIVE blog here

For full coverage of Union Budget 2022, click here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SBI releases new recruitment rules, to consider women over 3 months pregnant ‘temporarily unfit’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The country’s largest state-owned lender, State Bank of India, has revised medical and ophthalmological standards for hiring recruits and promotees. The amended SBI guidelines for pregnant women candidates—which have drawn criticism from employee unions, CPI leaders, CITU, and others—states that women pregnant for over three months will be considered “temporarily unfit” for service.

But they would be allowed to join the bank “within four months after the delivery of the child.” If the pregnancy is less than three months, the “candidate will be considered fit,” the e-circular containing instructions for recruits, accessed by CNBC-TV18, said. 

Earlier, the bank appointed women candidates up to six months pregnant, provided they could furnish a certificate from a gynaecologist stating her employment with the bank will not interfere with pregnancy or the development of the fetus.  

Also Read | SBI’s new recruitment norms calling women over 3 months pregnant “temporarily unfit” draws criticism

As per the new SBI rules, the lender will disqualify recruits with uncontrolled and severe hypertension and diabetes mellitus with progressive damage of the eye, kidney, or heart. Previously, controlled and mild diabetes without any complications was considered a fit for service. 

Further, stammering candidates will be evaluated and if it can be treated with speech therapy, then the lender won’t bar them from service. A candidate suffering from stroke is fit for the service, it said, if they can work and walk unassisted.

The lender will bar persons suffering from schizophrenia, bipolar disorders and other psychotic illnesses. Banned substance abuse will be a reason for disqualification, it said.

These revised standards regarding the promotion will be applicable from February 4, 2022. And for recruitment, these policies will be effective from December 21.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Closing Bell: Sensex retreats 880 points from day’s high; Nifty closes at 17,100

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian equity benchmark indices closed the session flat after surging over 1 percent in the opening trade. The indices gave up gains in a sharp sell-off in the last hour of the session and closed near the day’s lows. The fall was led by banking stocks as ICICI Bank, HDFC Bank, and Maruti dragged the market, while TCS, Infosys, and ITC lent support.

The 30-scrip Sensex closed at 57,200, as it declined 75 points and the Nifty50 index fell 8 points to end at 17,101. Sensex fell over 880 points from the day’s high and Nifty fell over 270 points. The broader markets outperformed the headline indices as both mid-caps and small-caps rallied 1.5 percent. The market breadth favours the advances.

Among sectoral gauges, a strong rally was seen in Nifty IT, Healthcare and Pharma indices. Nifty Realty also surged over half a percent. Nifty Metal rose over 0.4 percent and Nifty Media climbed over 0.8 percent. However, banking stocks were under pressure today as Nifty Bank declined over half a percent. Nifty Auto also closed over half a percent lower.

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Among the 50 stocks on Nifty, NTPC, UPL, Sun Pharma, Tata Consumer, IndusInd Bank led the gains, as each scrip rose up to 4 percent. Leading the losses were Maruti, Tech Mahindra, Power Grid, ICICI Bank, Hero Moto.

Sun Pharma gained over 2 percent after posting an improved set of earnings. Bharti Airtel closed over 1 percent higher, but off the day’s highs after an announcement of a deal with tech giant Google.

Markets this week

Sensex and Nifty fell over 3 percent this week for the second straight week, with Nifty IT being the top losing index. It lost over 6 percent this week and 12 percent in the last two weeks. Nifty Bank slipped over 3 percent for the second straight week.

The midcap index slipped over 2 percent this week and nearly 7 percent in the last two weeks. PSU Bank and PSU indices, however, posted gains for the week along with India VIX.

35 of 50 Nifty stocks fell this week, with Tech Mahindra, Wipro, Titan being the top losers. Cipla, Axis Bank, IndusInd Bank, NTPC, Maruti are the top Nifty gainers.

Also Read | Morgan Stanley sees a 30% upside in Punjab National Bank

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Morgan Stanley sees a 30% upside in Punjab National Bank

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Punjab National Bank (PNB) shares surged over 3 percent Friday after posting a 123 percent spike in net profit. The state-owned lender reported a net profit of Rs 1,126 crore for the quarter ended December 2021, as against Rs 506 crore reported in the corresponding quarter of the previous fiscal.

Morgan Stanley has an equal-weight rating on PNB shares at a target price of Rs 53, up over 30 percent from its current market price. It said profit before tax is 5 percent below its estimates due to higher-than-expected credit costs. An equal weight rating the stock will perform in line with the benchmarks.

The brokerage said its pre-provision operating profit (PPoP) did well and is 34 percent above its estimates due to improvement in margin and lower costs. PPoP is the amount of income a bank earns in a given time period, before considering the funds set aside to provide for future bad debts.

Also Read | PNB Q3 results: Net profit spikes 123% YoY to Rs 1,126 crore, beats estimates

Its slippages moderated for the quarter under consideration, Morgan Stanley added. Slippages are when a standard asset becomes a non-performing asset (NPA). The lender saw a slight improvement by cutting its gross non-performing assets (NPAs) as a percentage of gross advances to 12.88 percent from 12.99 percent year-on-year.

The lender said the banking situation continues to be uncertain due to the discovery of new variants of coronavirus. “The major identified challenges for the bank would arise from eroding cash flows and extended working capital cycles. The bank is gearing itself on all the fronts to meet these challenges,” it said in an exchange release.

At the last count, PNB shares were flat at Rs 41. In comparison, the Nifty PSU Bank index was down over 0.3 percent.

Stay tuned with stock market updates here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Colgate Palmolive India: Should investors buy, sell, or hold after Q3 results?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Colgate Palmolive India shares rose as much as 1 percent on Friday after the company reported a 1.6 percent surge in net profit in its third-quarter earnings. As per an exchange filing, the company’s net profit after tax was Rs 252 crore as against the net profit of Rs 248 crore for the same quarter in the previous fiscal.

Colgate’s net sales grew over 4 percent for the quarter under consideration to Rs 1,271 crore. Its net sales for the nine months ended December 31 came in at Rs 3,773 crore, rising over 7 percent over the same period of the previous fiscal.

“Despite the macro challenges, our growth remains strong, consistent and driving the right balance between volume and revenue growth. Brand penetration strengthening reflects continued consumer trust in our brands,” Ram Raghavan, MD of Colgate-Palmolive India said.

As the scrip currently trades 0.7 percent higher at Rs 1,405, what should investors do with it? Here’s what brokerages say:

Also Read | SRF shares up 4%; Jefferies maintains ‘underperform’, raises target price to Rs 1,940

CLSA on Colgate

Call: Outperform | Target price: Rs 1,540 

Though its results were marginally below CLSA’s expectations, the brokerage expects Colgate to give better returns than the average market considering a volume growth of 3 percent and price growth of 1 percent. The brokerage, however, added the company faces multiple headwinds and that its earnings visibility remains weak. It said the 2-3 percent price hike in November 2021 was absorbed due to an increase in promotions this year as compared to the previous year.

Nomura on Colgate

Call: Neutral | Target price: Rs 1,700 

Nomura is “neutral” on Colgate considering its anaemic growth and that the pressure can sustain due to weak rural demand. Its gross margin slipped to 66.6 percent on elevated input costs and lower effective pricing. But the company is maintaining an elevated pace of innovations with new product and sub-category launches, it said.

In the oral care segment, Colgate launched Gum Expert, an advanced toothpaste. It entered the face cleansing category, featuring products like face foams, masques, and scrubs. It also launched Colgate RecyClean, one of its kind toothbrushes with bristles derived from plant and BPA free, and made using 100 percent recycled plastic, the company said in a press release.

The company expects to continue a strong innovation pipeline, “with new initiatives launched this quarter,” Colgate added.

Nomura said the company is entering a low-growth period with the absence of any sustainable triggers. And while the valuations of the company is inexpensive, the unexciting earnings growth can limit stock upside, the brokerage added.

Also Read | Should you buy, sell, hold RBL Bank shares after Q3 results?

Jefferies on Colgate

Call: Buy | Target price: Rs Rs 1,700

Jefferies said the company’s revenue growth is in-line with its estimates. However, despite product price hikes, its realisation growth is weak even as volume growth is at 3 percent. The brokerage said the company’s gross margin has started to stabilise despite severe pressures. “A pick-up in growth is critical for share price performance,” it added.

ICICI Securities on Colgate

Call: Add | Target price: Rs 1,550

ICICI Securities has cut its earnings estimates by 2 percent for FY23. It has maintained an “add” rating but cut the target price from Rs 1,600 to Rs 1,550 saying “key downside risk is lower-than-expected market share gains.”

The brokerage said the revenue growth of 3.9 percent YoY is “underwhelming,” but not “unexpected”. Furthermore, its gross margin pressure and weak growth led to EBITDA margin falling below 30 percent, despite a significant cut in ad-spends.

Yes Securities on Colgate

Call: Add | Target price: Rs 1,584

Yes Securities has downgraded the stock from “buy” to “add” as lower growth and inflation-led concerns on margins is expected to delay the earnings growth trajectory.

It said, with management indicating its endeavour to maintain a balance between volume and price growth, “we expect a gradual improvement in volume albeit at a slower pace than expected.”

Track LIVE stock market updates here

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Zomato sets up non-banking finance company; acquires stake in UrbanPiper, AdOnMo

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Food delivery company Zomato has set up a wholly-owned subsidiary of the company as a non-banking finance company and bought a minor stake in AdOnMo, the advertising-tech firm and UrbanPiper Tech, a B2B software platform.

“Both UrbanPiper and AdOnMo investments are synergistic to our core business and will help accelerate the growth of these companies which will help in filling important gaps in the food ordering and delivery ecosystem in India,” Zomato said in an exchange release.

“This is to further inform the exchange that board in its meeting held today also approved the incorporation of wholly-owned subsidiary of the Company as Non-Banking Finance Company,” it added. The name of the NBFC is subject to approval by the Ministry of Corporate Affairs, it said.

The proposed paid-up capital for the NBFC is Rs 3 crore and the authorised paid-up capital is pegged at Rs 10 crore. The subsidiary will also need the Reserve Bank of India’s (RBI’s) approval to carry out the NBFC business.

Also Read | Bottom fishing in Zomato? Check what a bulls vs bears scenario suggests for food delivery app stock

The company has invested $5 million in UrbanPiper for a 5 percent stake as part of a larger $24 million funding round, it said in a press release. UrbanPiper acts like a middle later between restaurants, food ordering and delivery players. It enables restaurants to seamlessly integrate multiple players through a single digital interface.

Zomato has invested $15 million in AdOnMo for a 19 percent stake. This ad-tech company enables cloud-connected digital screens with contextual and targeted advertising capabilities. It takes targeted digital advertising beyond personal devices to outdoor digital screens.

“Growth in AdOnMo’s platform will help our food ordering and delivery business leverage new digital avenues for customer acquisition,” Zomato said in an exchange release.

The MD and CEO of Zomato, Deepinder Goyal has an investment in Bace Fund LP, which had also invested in AdOnMo in December 2019. Base Fund currently owns 13 percent of the company. However, in the exchange release, Zomato said, Goyal’s holding of $100,000 is an insignificant portion of the fund.

Also Read | I have been waiting for a bear market, Zomato CEO tells employees amid steep fall in stock price

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Opening Bell: Sensex, Nifty open higher amid strong Asian cues; NTPC, IT stocks in focus

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian equity benchmark indices opened higher Friday following positive trading cues from the Asian peers. The shares had crashed as much as 2.5 percent in Thursday’s session then recovered losses to close 1 percent lower.

The Sensex opened 1 percent or 560 points higher at 57,838. Nifty50 index opened at 17,267 — up 155 points or 0.9 percent. The broader market indices were trading higher.

Bluechips leading the gains on the Nifty50 index were NTPC, Mahindra and Mahindra, ONGC, Tata Consumer, and Eicher Motors. Only two out of 50 Nifty bluechips were in the red – Airtel and HDFC.

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Among sectoral gauges, all the sectors were in the green with Nifty Auto rising as much as 1 percent. Nifty IT was up over 2 percent, almost reversing yesterday’s losses. Nifty Metal and Pharma also surged over 1 percent. Nifty Bank was up over half a percent.

Globally, Asian shares recovered some of their steep losses from the previous session on Friday after US markets limited further declines from hawkish Federal Reserve comments. The recovery was supported by a firm economy and strong earnings at Apple.

US stock futures rose during the Asia Session with Nasdaq and S&P 500 e-minis up over 1 percent. Apple reported record sales in the holiday quarter, beating estimates and shares rose over 5 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent after sliding over 2 percent Thursday. However, the index is still down over 5 percent so far this month. Australian shares rose over 1 percent and Japan’s advanced 1.5 percent China’s equities were over 0.2 percent higher but Hong Kong’s shares declined half a percent.

Also Read | Top stock tips by Shrikant Chouhan, Mitessh Thakkar: Infosys, BHEL, Bajaj Finance and more

Over on Wall Street, though stocks opened higher, they ended lower. The DJIA fell marginally but S&P 500 lost over half a percent and Nasdaq slipped over 1.5 percent.

US markets had opened higher after the Commerce Department’s advance take on fourth-quarter GDP showed the US economy in 2021 grew 6.9 percent at its fastest pace in nearly four decades. But gains were pared as investors processed how strong economic growth might inform the Fed’s thinking, a Reuters report said.

Meanwhile, the US crude ticked over half a percent higher to $87.19 a barrel and the Brent crude reached $89.34 per barrel. Persistent tension between Russia and Ukraine had pushed oil prices to seven-year highs earlier in the week. Gold dipped slightly, with spot gold trading at $1796.06 per ounce.

(With inputs from Reuters)

Also Read | Friday’s top brokerage calls: RBL Bank, PNB, Pidilite and more

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow