Month: June 2022

Stock Market Highlights: Sensex drops 410 pts from day’s high and Nifty50 gives up 16,550 dragged by IT and FMCG shares

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

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Stock Market Highlights: Indian equity benchmarks BSE Sensex and NSE Nifty50 extended losses to a second straight day in a volatile session on Wednesday. Losses in IT and FMCG shares pulled the headline indices lower, though a fag-end recovery in financial shares limited the downside. Broader markets saw mild gains, with the Nifty Midcap 100 ending marginally higher and the Nifty Smallcap 100 rising 0.3 percent.

Catch highlights of the June 1 session, and more, 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

Can you plan your retirement with cryptocurrencies?

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

Listen to the Article (6 Minutes)

Governments, economists and financial experts alike have all expressed their scepticism about cryptocurrencies as an asset class, going so far as to call it a Ponzi scheme. Despite this, cryptocurrencies have seen massive adoption — with El Salvador making it a legal tender and many other countries looking to follow suit.

The price of several cryptocurrencies has also skyrocketed over the last few years. Take Bitcoin, for instance; when it was launched in 2009, 1 BTC was worth a fraction of a dollar. A little over a decade later, in 2021, Bitcoin hit an all-time high of $69,000. Therefore, it’s no surprise that people have started to view cryptocurrencies as a wealth-building vehicle, putting them up on a pedestal with the likes of gold.

“Crypto has been gaining traction as an asset in recent years, and this can be attributed to the growth potential that it has demonstrated. Even big investment firms are offering crypto-based products such as Bitcoin-backed loans, indicating an immense potential of the asset class beyond only retail investors,” Nischal Shetty, Co-founder and CEO at WazirX, told CNBC-TV18.

But can cryptocurrencies help you build a nest egg for your golden years? Are they a viable option for retirement planning? Several experts seem to think so, just as long as you keep it well-balanced with other assets. Many wealth management firms have also seen their clients add cryptos to their retirement portfolios.

Also Read: Do you need a second life insurance policy? Here’s what you should consider

Adding cryptos to your retirement portfolio diversifies it and allows you to enjoy Bitcoin’s inflation-hedging properties.

Fidelity Investments, an American financial services company, was the first to offer cryptos in 401(k) retirement accounts. Since then, several other companies have also followed their lead. “Investing in crypto can be a small part of your retirement planning. Crypto is a volatile market and therefore should not be a huge part of your financial strategy, but it can be a way to diversify your holdings,” Danetha Doe, an economist and personal finance expert, told CNBC-TV18.

Things to consider while adding crypto to your retirement portfolio

Before adding cryptos to your retirement portfolio, some of the critical factors you should consider are your age, disposable income, and risk appetite. You also need to ensure that the cryptocurrencies you choose have long-term potential. Keeping this in mind, most crypto experts would invest in established coins such as Bitcoin and Ether.

“If an investor would like to make crypto a part of a well-balanced retirement portfolio, it should be about 10 percent of the total investment. However, the crypto that one holds for retirement should be bluechip with high long-term potential, such as Bitcoin,” Shetty added.

The coins you select will show how much risk you are taking. Since Bitcoin and Ether are the largest coins, most people prefer them over others.

Also Read: What are Bitcoin and Ethereum options: How can they affect the market?

However, if you don’t have sufficient retirement savings built up already, you might want to steer clear of cryptos. Plus, you want to be aware of all security issues such as hacking and malware attacks. Experts recommend you keep your crypto in an offline or hardware wallet. These wallets are not connected to the internet and ensure that only you have access to its private keys, making them impervious to hacks.

How can you add crypto to your retirement portfolio?

CNBC-TV18 spoke to an expert from one of India’s top cryptocurrency exchanges, and their suggestion was to invest in crypto SIPs. You can plan your retirement with cryptos “only if you act smart and accumulate top coins. For me, every Bitcoin that I am accumulating through SIP every month is for my retirement,” they said.

Many crypto exchanges in India offer systematic investment plans (SIPs) in cryptos like Bitcoin and Ether. If you invest Rs 100 every week in a crypto SIP plan for five years, your estimated returns will add up to Rs. 2,29,824. That is a return on investment of over 2,000 percent; around 90 percent more than gold and bank FDs, as per ZebPay’s Bitcoin SIP calculator.

They had a similar outlook when it came to NFTs. “Most of the NFTs that I buy are the ones I will never sell at all. Making them a type of retirement saving room.”

“Being from a technical background helps me understand the risks associated with each crypto out there very well — if anyone else is looking for an alternative to a mostly opaque NPS in an ever-inflating rupee, Bitcoin might be just the thing you need,” they added.

Also Read: Key steps to create a wealth management strategy

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

5 best smartphones under Rs 25,000 you can choose from right now

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

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We have curated a list of the five best affordable smartphones you can choose from right now. These phones fall into the mid-tier segment — between Rs 15,000 and Rs 25,000. These are the realme Narzo 50 Pro 5G, vivo T1 Pro 5G, OnePlus Nord CE 2 Lite 5G, Oppo F21 Pro, and Samsung Galaxy A23.

The Indian mid-tier smartphone segment is in an interesting place right now. According to a recent report by Counterpoint Research, Chinese companies occupy four of the top five spots by market share — Xiaomi (No.1), realme (No.3), vivo (No.4) and Oppo (No.5), the other being South Korean giant Samsung in the second spot. Of these four Chinese brands, three — realme, vivo and Oppo — are owned by BBK Electronics, which is also the parent company of another Indian smartphone staple — OnePlus.

The mid-tier segment is what most non-technophile Indians prefer as all they need is for their gadgets to have the latest features, a fresh design and multiple cameras on the back, something every smartphone boasts of these days.

Considering the short shelf life of most Android phones — 18 months of OS updates from the date of manufacture, we considered only those mobile phones that hit the Indian market since March 1, to ensure you get the most bang for your buck.

Here’s a look at five of these phones, in no particular order.

realme narzo 50 Pro 5G

The newest entrant in this segment, alongside its less powerful sibling, the narzo 50, this smartphone is possibly the easiest to recommend. It went on sale in India on May 26 and hits the sweet spot both in terms of price and specs. The phone packs a 5,000 mAh battery powered by a MediaTek Dimensity 920 5G processor. The phone has 6 to 8 GB of RAM and 128 GB of onboard storage. The screen is a 6.4-inch Full HD+ AMOLED display with a 90 Hz refresh rate, which makes animations and scrolling buttery smooth. It runs on Android 12-based realme UI 3.0.

The smartphone also boasts of dual-5G SIM capabilities and has a 3.5 mm headphone jack. As for the cameras, the narzo 50 Pro has a 48 MP main lens with portrait mode, and night mode, among other features; an 8 MP ultra-wide camera; and a macro lens. On the front, a 16 MP selfie camera is housed behind a hole-punch cutout.

vivo T1 Pro 5G

The vivo T1 Pro 5G comes a close second, having been launched in the first week of May. Powered by a Qualcomm Snapdragon 5G processor, the phone has 6/8 GB of RAM and 128 GB of storage, a 6.44-inch AMOLED display with HDR10+ support and runs on FunTouch OS 12, based on Android 12.  The phone also boasts of a 5,000 mAh battery.

The T1 Pro 5G features a 64MP main camera, an 8MP ultra-wide lens, and a 2MP macro camera, while a 16 MP camera has been installed on the front for selfie lovers. The smartphone’s price starts at Rs 23,999.

OnePlus Nord CE 2 Lite 5G

OnePlus has been on something of a smartphone-release spree lately, with four launches in two months. The Nord CE 2 Lite 5G is a solid offering, running on a Snapdragon 695 chipset and powered by a 5,000 mAh non-removable battery. Its 6.59-inch LCD display has a 120 Hz refresh rate. The phone comes with 6/8 GB of RAM and 128 GB of onboard storage.

With a starting price of Rs 19,999, the NOrd CE 2 Lite 5G sports a 64 MP primary lens, a 2 MP depth-assist lens and a 2MP macro lens on the back, and a 16 MP shooter on the front. The phone runs on the latest version of OxygenOS based on Android 12.

Oppo F21 Pro

Released in the first half of April, the F21 Pro continues a long tradition of mid-tier Oppo phones, offering premium looks and solid specs with a healthy focus on the camera. The F21 Pro, marketed as the ‘Selfie Master’, sports a 32 MP front camera with panorama, portrait, night mode and time-lapse features. On the back, the phone packs a 64 MP primary lens, a 2 MP microscope lens and a 2 MP black-and-white shooter.

The phone’s standout feature is its design — the back has a faux leather finish and a flat aluminium frame, with the camera array in an accented housing on the back. On the front, the phone is all glass — a 6.43-inch AMOLED screen with an over 90 percent screen-to-body ratio. The phone runs on a Snapdragon 680 SoC (system-on-a-chip) and is powered by a 4,500 mAh battery. With 8 GB of RAM and 128 GB RAM, the phone is priced at Rs 22,990.

Samsung Galaxy A23

The “oldest” phone on this list, having launched in late March, the A23 is typical Samsung — powered by a Snapdragon 680 SoC, the phone packs quite a punch. From the front, the phone is indistinguishable from any other Samsung Phone that is not a Galaxy S series model. That said, this is an impressive smartphone in its own right, with the highest number of cameras of any phone on this list — 5. This includes four cameras on the back — a 50 MP main lens with optical image stabilisation, a 5 MP ultra-wide camera, a 2 MP depth lens and a 2 MP macro camera. On the front, the phone features an 8 MP selfie camera.

The Galaxy A32 has 6/8 GB of RAM, 128 GB of storage and a 5,000 mAh battery that purportedly lasts two days. The display is a 6.4-inch Full HD+ LCD panel. The phone has a 3.5 mm headphone jack, and its starting price is Rs 18,499.

These are the five mid-tier smartphones we’d recommend. That being said, with the rapid pace at which the Android smartphone landscape changes, do not be surprised if this list is updated, or even overhauled in the coming days. ‘Til then, watch this space.

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

Gold price hits near 2-week low as US bond yields, dollar firm

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

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Gold prices hit a near two-week low on Wednesday, as rising Treasury yields and a strengthening US dollar continued to sap demand for greenback-priced bullion.

Fundamentals

* Spot gold was down 0.2 percent at $1,834.09 per ounce, as of 0044 GMT, its lowest since May 20. US gold futures fell 0.6 percent to $1,838.20.
* The dollar index steadied after gaining on Tuesday, making bullion more expensive for buyers holding other currencies.
* Benchmark US 10-year Treasury yields rose, lowering the appeal of zero-yield gold.
* Gold prices fell about 1 percent in the previous session and recorded a second consecutive month of declines in May.
* US President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to discuss historic inflation that’s draining American wallets, even as he assured the central bank chief he would have freedom from political interference.
* Bullion is considered a hedge against inflation, but the Fed hiking short-term US interest rates to fight rising costs raises the opportunity cost of holding it, as gold itself yields no interest.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1 percent to 1,068.36 tonnes on Tuesday from 1,069.81 tonnes on Friday.
* Spot silver dipped 0.1 percent to $21.2 per ounce, and platinum fell 0.1 percent to $963.48, while palladium firmed 0.1 percent to $2,000.79.

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

IndiGo CEO Rono Dutta says air travel demand stronger than pre-COVID

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

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The demand for air travel has become stronger than pre-COVID, IndiGo CEO Ronojoy “Rono” Dutta told CNBC-TV18 in an exclusive interview.

“Demand has been very strong, now we are way above COVID level… I can say with conviction that we have recovered from COVID,” Dutta said. As a result, the airline is also witnessing more passengers travelling more frequently, leading to a 5-6 percent monthly growth in revenue. “The airline is steadily marching upwards,” Dutta said.

While the news is good on the revenue side, the cost pressures remain for the airline in terms of crude oil rates and foreign exchange. Offsetting the 5-6 percent monthly revenue growth is fuel cost, which is going up by 11 percent per month.

“We are on the cusp of profitability… need a little bit of help on the cost side. We have a glimmer of hope; a lot depends on crude oil prices… Oil prices need to behave,” Dutta said.

Also read: View | All is not well with Indian aviation

The 71-year-old aviation veteran, who is retiring on September 30, reiterated that he is “very enthusiastic” about revenue and aims for a consistent increase in unit revenue at the rate of 3-4 percent every year.

Dutta also continues to be bullish on the growth potential in the Indian aviation sector, and sees airport infrastructure as the only constraint. Citing the example of the Delhi airport, which has emerged among 10 busiest airports in the world without connecting traffic, Dutta said Indian metro airports have a massive potential once hubs are developed to attract connecting traffic as well.

“We are seeing in aviation is just the first ripple, the wave is yet to come,” Dutta said.

Also read: IndiGo shares fly 10% as Street cheers prospects of higher airfares

The airline is also focused on reducing its debt, which has increased 23.5 percent year-on-year to Rs 36,877.8 crore in the fourth quarter of the 2022 fiscal.

“Forward bookings dwindled during COVID, now they are back. We will slowly be reducing our debt. Pre-COVID, we were close to zero debt. Over time, we would like to aim for very little debt,” Dutta said.

The airline is more focused on customer-friendly service as a part of its strategy to gain more passengers, and a higher market share is a by-product of that mechanism, Dutta said, adding that the airline’s strength is its network. IndiGo, the largest domestic carrier, has also resumed hiring and is currently recruiting 400 flight attendants.

“Our philosophy is that at every stage customer should ask why I am not booking IndiGo,” Dutta said.

Also read: IndiGo fined Rs 5 Lakh for denying boarding to boy with special needs

The airline is looking at a net addition of 15 aircraft in its fleet over the next year. As of March 2022, IndiGo had 275 aircraft in its fleet.

Once IndiGo starts taking delivery of Airbus A321XLR in 2024, it will aggressively expand its international operations.

“International profitability has been higher than domestic… Before-covid, international was about 25 percent of our capacity. Our plan is to take international capacity to 40 percent,” Dutta said.

The airline board’s recent decision to appoint current President and CEO of KLM, Pieter Elbers, as its CEO from October is also being seen as a part of IndiGo’s strategy to deepen its network in the global markets specifically.

Also read: Aviation stocks rise despite jet fuel prices hitting record levels

“The IndiGo board is looking for a CEO with tenureship of 8-10 years… Pieter Elbers has a wonderful reputation, knows the European market very well… IndiGo will heavily expand in Europe with A321XLR,” Dutta said.

Talking about the period of transition, Dutta said that Elbers will become available from July and start making trips to India after that.

On being his future beyond IndiGo, Dutta said that he will definitely be working for another airline as he cannot “imagine retiring” from aviation.

“We are all here on a transit visa… None of us is here on a permanent residence status. Moving on is part of our game.. .I am moving ahead with the true spirit of an adventurer… I am a bit of a nomad… I love to work for an airline, can’t imagine anything else… cannot imagine retiring from aviation. Love aviation with a passion,” Dutta said.

Also read: Air France-KLM, IndiGo implement codeshare agreement

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

Oil prices open higher on EU Russian oil ban, end of Shanghai lockdown

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

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Oil prices rose in early Asian trade on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and China ended its COVID-19 lockdown in Shanghai.

Brent crude for August delivery was up 78 cents, or 0.7 percent, at $116.38 a barrel at 0037 GMT. The front-month contract for July delivery expired on Tuesday at $122.84 a barrel, up 1 percent. US West Texas Intermediate (WTI) crude rose 63 cents, or 0.6 percent, to $115.30 a barrel. Both benchmarks ended the month of May higher, marking the sixth straight month of rising prices.

EU leaders agreed in principle on Monday to cut 90 percent of oil imports from Russia by the end of this year, the bloc’s toughest sanction yet on Moscow since the invasion of Ukraine three months ago, which Moscow calls a “special military operation”.

Once fully adopted, sanctions on crude will be phased in over six months and on refined products over eight months. The embargo exempts pipeline oil from Russia as a concession to Hungary.

“However, with Germany and Poland already confirmed they won’t be buying Russian oil via pipeline or sea, the total effect would be to cut 90 percent of Russian crude sales to the EU by year’s end,” analysts from ANZ Research said in a note.

In China, Shanghai’s draconian COVID-19 lockdown ended at midnight on Wednesday morning after two months, prompting expectations of firmer fuel demand from the country. Capping gains were reports that some producers were exploring the idea of suspending Russia’s participation in the OPEC+ production deal.

While there was no formal push for Organization of the Petroleum Exporting Countries(OPEC) to pump more oil to make up for any potential Russian shortfall, some Gulf members had begun planning for an output increase sometime in the next few months, the Wall Street Journal reported, citing OPEC delegates.

“The anticipation of more supply hitting the market, even after cutting Russia out, could be fueling some of this sell-off as oil gave up its post-EU embargo bounce,” said Stephen Innes, managing partner at SPI Asset Management, in a note.

US crude oil production rose in March by more than 3 percent to the highest since November, according to a monthly report from the US Energy Information Administration on Tuesday.

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

North Korea hails progress in fight against drought despite COVID wave

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

Listen to the Article (6 Minutes)

North Korea has made progress in its fight against drought, and rice planting is under way nationwide even as the country ramps up efforts to tame its unprecedented coronavirus wave, state media said on Wednesday.

The reclusive country has been waging a battle against its first-ever COVID-19 outbreak since declaring a state of emergency and imposing a nationwide lockdown last month.

The outbreak triggered concerns over a potential food crisis amid an “all-out fight” against drought, in a country that lacks vaccines and medical supplies and has already been hit by international sanctions over its weapons programmes.

The anti-drought efforts have made progress after the central and local government organs and even art groups mobilised “all capacities and means” to improve irrigation and helped with rice planting, the official KCNA news agency said.

“All farmlands that could suffer drought were located without exception, and farmers were informed of reasonable watering methods according to soil humidity and lighting conditions in order to prevent crop damage,” KCNA said.

Agriculture authorities have come up with “meticulous farming strategies”, including maximising the efficiency of rice planting machines and securing high-quality fertilisers, it added.

Droughts and flooding have long posed seasonal threats to North Korea, and major natural disasters could further hurt its isolated economy. Leader Kim Jong Un has warned of a tense food situation due to the pandemic and last year’s typhoons.

KCNA said 93,180 more people showed fever symptoms as of Tuesday evening, bringing the total to 3,738,810. It did not report any new deaths, and the toll was 70 a day before. State media has said the COVID wave has shown signs of abating, after the daily numbers of people with fever topped 390,000 about two weeks ago.

North Korea has never confirmed how many people have tested positive for the virus. But experts have said the released figures could be underreported, which could make it difficult to assess the actual scale of the situation.

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