GST Council meet highlights: Decision taken to defer correction of inverted duties only in case of textiles, says FM

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

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GST Council meet highlights: GST Council has unanimously decided to defer hike in GST on textiles from 5 percent to 12 percent. The matter will be discussed again in the next Council meet for future roadmap.

Here are the highlights on GST meet:

FM briefs the media after a GST meeting

FM #NirmalaSitharaman briefs the media after a #GST meeting which was called under the ’emergency provision’, says it was a brief meeting with one agenda

“Gujarat FM requested for deferment of decision taken in the Sept Council meet on inversion of tax structure.”

*Thread* pic.twitter.com/cNWj4vZ0Cp

— CNBC-TV18 (@CNBCTV18Live) December 31, 2021

Finance Minister says decided to defer correction of inverted duties for textiles

Finance Minister says decided to defer the correction of inverted duties for #textiles.#Textiles will again be referred to the ‘rate rationalisation panel’. pic.twitter.com/CokdS9vqG7

— CNBC-TV18 (@CNBCTV18Live) December 31, 2021

Tenure of group of ministers at GST council extended

The tenure of group of ministers at GST council has been extended, Bikram Singh, Industries Minister of Himachal Pradesh informed CNBC-TV18.

“Only single decision has been taken by the Council that the percentage increase in textile goods that is deferred. It is deferred till next council meeting. Regarding inverted duty structure there are different opinion of all the states, but the decision regarding this particular textile will be done in the month of February,” he said.

On GoM tenure he said, “GoM tenure has been extended.”

GST Council has decided to defer the hike in GST rate on textiles (from 5% to 12%). The Council will review this matter in its next meeting in February 2022: Bikram Singh, Industry Minister, Himachal Pradesh on GST Council meeting in Delhi pic.twitter.com/3BM4MJxeFJ

— ANI (@ANI) December 31, 2021

Hike in GST on textiles from 5% to 12% deferred

#CNBCTV18Exclusive | Sources tell @TimsyJaipuria, @GST_Council unanimously decides to defer hike in GST on textiles from 5% to 12%.

GST Rate hike on textiles from 5% to 12% was to come into effect from January 1.@ShereenBhan pic.twitter.com/VCqDxaDVTV

— CNBC-TV18 (@CNBCTV18Live) December 31, 2021

Proposed hike in GST on textile could not have come at a more inopportune time: Tamil Nadu FM

GST Meet | Proposed hike in GST on textile could not have come at a more inopportune time. Textile industry is limping back to normalcy from the onslaught of COVID pandemic, says Tamil Nadu Finance Minister pic.twitter.com/uOJZWovU9n

— CNBC-TV18 (@CNBCTV18Live) December 31, 2021

Kerala demands 5-yr extension of GST compensation, higher allocation in centrally sponsored

Kerala on Thursday demanded extension of GST compensation period by another five years and a rehabilitation package for “return migrants” who have come back to the state from foreign countries amid the COVID19 pandemic. In a list of demands submitted to the Centre during the pre-Budget meeting of Union Finance Minister Nirmala Sitharaman with state finance ministers, Kerala has also called for making the National Health Mission a fully centrally sponsored scheme as well as increased allocation for such schemes.

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View: AAP stirs Punjab cauldron with Chandigarh win

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

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Suddenly, there is a buzz around Aam Aadmi Party (AAP) and its political fortune in Punjab. The reason is not far to seek. Emergence of this nascent party in Chandigarh caught the fancy of political pundits.

After all denizens of “City Beautiful” a sobriquet of the township created by French architect Le Corbusier come from different parts of northern India and made it their home. Here in the local body polls, AAP emerged as a clear winner pushing Bharatiya Janata Party (BJP) to the second spot and the Congress, ending a distant third.

It would be simplistic to juxtapose these results and start recalculating poll predictions ahead of the state assembly that will be reconstituted by mid-March. Elections to local bodies have a direct bearing on issues that are limited in geographical terms of wards and performance of representatives who served the term. Then, those residing in Chandigarh are not enrolled as voters in Punjab and the demography of the city cannot compared to the spread across three distinct regions — Malwa, Doaba and Majha — of Punjab.

Yet, of five states Goa, Manipur, Punjab, Uttarakhand and Uttar Pradesh, which would vote early next year, the situation in Punjab offers a very interesting phenomenon.

Of these, Punjab is the only state where the Congress is in government. Just to emphasise the difference, barring this state in rest of four the BJP is governing and as Prime Minister Narendra Modi underscores, a double-engine regime is at work for the people.

For students of politics, Punjab offers a rare insight. Politics in the state for several decades revolved around two poles, the Indian National Congress and a regional outfit in the Shiromani Akali Dal.

The Congress remains a principal contender with the Akali Dal mounting a serious challenge to regain the seat of power along with its partner the Bahujan Samaj party, which found space when identity politics began acquiring contours.

Over the past few decades, it was either the Congress or the Akalis who were in office and the stream of politics meandered along predictable lines until the emergence of AAP in the 2014 Lok Sabha elections upset the electoral balance.

The AAP marked national presence with Punjab electing its full contingent of four MPs in the Lok Sabha and following it up by becoming the prime party in the opposition after the 2017 state assembly election. AAP did mess calculations at the last assembly and remains an option for the people of Punjab who are looking for a Doosra, a party other than the Congress and the Akalis.

The BJP, a junior partner to the Akalis for long, is now working on an electoral pact with newly minted Punjab Lok Congress, of Amarinder Singh, set up after being ejected from the Chief Minister’s chair. This formation added breakaway Shiromani Akali Dal (Sanyukt) founded by former Union Minister Sukhdev Singh Dhindsa.

Just when things appeared to be settling down, a new front of farmers associated with the prolonged and decisive struggle against three contentions laws decided to throw their hat in the ring through Sanyukt Samaj Morcha. This factor is bound to change the equations on the ground since farmers were sullen with the BJP over farm laws and a sizeable rural segment of them seen as traditional Akali supporters. Whose votes would they peel off?

The field is getting crowded and adding to poll flavour is the infighting in the Congress. If the party’s decision to appoint a scheduled caste leader Charanjit Singh Channi upset the caste calculation matrix like never before it also wounded the vaulting ambition of the Punjab Pradesh Congress chief Navjot Singh Sidhu.

Sidhu is insisting the party enter the poll fray with a clear face of its next Chief Minister, a move that can jeopardise Congress USP for now of having Channi in the saddle. The undeclared intention of former India cricketer whose proximity with the younger Gandhi leadership in the party is established, wants to be that face.

This dilemma is not limited to the Congress party alone. The AAP faces a similar predicament. Here the AAP Convenor Arvind Kejriwal is reluctant to identify a leader as its Chief Minister candidate in the face of pressure from its ranks and its lone MP Bhagwant Mann. A similar tactic of not projecting a possible CM dented its image the last time.

With Akalis the picture is clear. Its president Sukhbir Badal is the leader and the alliance announced a Deputy Chief Minister would be from the BSP, if the combination is voted to office.

The BJP, Punjab, Lok Congress and Dhindsa faction of Akalis of seat sharing indicates larger share for the national party under the presumption that Captain Amarinder Singh could be the Chief Minister.

In personality driven politics, projecting a Chief Minister provides a cutting edge to parties contesting for power while issues do dominate the discourse. Every election is interesting and with competition becoming more intense, it is always fascinating to scan the landscape.

Around election time, the voter remains the sole arbitrator in deciding the future of politicians of different hues. From the established parties to newcomers, who seek to test the waters in this Mahakhumb, Punjab election offers an equal platform for all those eager to take a plunge.

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Who is mysterious Bitcoin creator Satoshi Nakamoto? Elon Musk says he has the answer

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

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No one really knows who is behind the pseudonym Satoshi Nakamoto that has been credited as developing the world’s first and largest, cryptocurrency – Bitcoin. Nakamoto was the one who mined the first blockchain of Bitcoin and was the one who published the whitepaper for the digital currency. Nakamoto had envisioned Bitcoin to be a token of transaction that would be widely adopted by the world to protect against inflation.

But while Bitcoin has had a rollercoaster ride over the past two years, in terms of soaring prices and popularity, the identity of Nakamoto is still widely speculated. Now, the world’s richest man thinks that he may have the answer.

Elon Musk, the CEO of companies like Tesla, SpaceX, Neuralink and more, has stated that he believes that the person behind the Nakamoto pseudonym is none other than cryptographic expert Nick Szabo.

“He seems to be the one more responsible for the ideas behind Bitcoin than anyone else. He claims not to be Nakamoto, but I’m not sure that’s neither here nor there,” Musk told podcaster and artificial intelligence researcher Lex Fridman.

“You can look at the evolution of ideas before the launch of Bitcoin and see who wrote, you know, about those ideas,” Musk said.

Szabo was one of the pioneers of ideas of cryptocurrencies and similar digital assets. Szabo was the principal creator of the defunct Bit Gold project in 1998, which was the first attempt to create a virtual, decentralised currency. Szabo’s techniques and ideas in the Bit Gold project would go on to directly influence Bitcoin development, with the inclusion of a proof-of-work (PoW) model, usage of mining blocks on the blockchain and more. Szabo also developed smart contracts, which went on to become a key part of the Ethereum blockchain which hosts the world’s second-biggest cryptocurrency. Szabo has claimed to not be behind the identity of Nakamoto, however.

“I’m afraid you got it wrong doxing me as Satoshi, but I’m used to it,” Szabo had said to financial author Dominic Frisby in 2014.

But a study from Aston University Centre for Forensic Linguistics in 2014, which analysed the Bitcoin whitepaper with Szabo’s other published material, along with writings of 10 others, had concluded that Szabo was undoubtedly behind the whitepaper’s creation.

According to the researchers, the number of linguistic similarities between Szabo’s writing and the Bitcoin whitepaper was uncanny and none of the other possible authors was anywhere near as good of a match.

But without Nakamoto revealing himself, it is entirely possible that the true identity of the person behind the development of cryptocurrencies is only going to be a matter of speculation. “It’s an interesting quirk of human history that there is a particular technology that has a completely anonymous inventor,” said Musk.

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January F&O series begins with 79% rollover from December series

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

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Dalal Street began the January futures & options (F&O) series on Friday, a day after the Nifty50 index ended the December series with a loss of 332.3 points or 1.9 percent. That was the biggest fall in a monthly series since March 2021.

The leaner, 30-scrip index Sensex lost 1,000.77 points or 1.7 percent during this month. The Nifty Bank shed 2,301.2 points or 6.2 percent.

Rollovers

The Nifty50’s December-January rollovers are at 79 percent as against a three-month average of 80 percent.

The rollovers for Nifty in the December series are marginally lower the three-month average with a higher cost of carry, indicating marginal unwinding of short positions, according to IIFL Securities.

The brokerage expects the 50-scrip index to continue to move in a sideways consolidation in the new series.

Foreign institutional investors’ longs are at 99 percent at the beginning of the December series.

Here are some highlights of the December F&O series:

• Omicron concerns; return of restrictions
• Sustained FII selloff
• Nifty IT at highs

Levels to expect in January series

Yes Securities expects the Nifty50 to trade in a range of 17,600-16,700 with sector churning being key in the range setup. IT stocks are showing relative strength and banking continues to drag, the brokerage said.

Here’s how the 50-scrip index has fared in the January series in the past:

December markets a second straight negative series following three positive series in a row. Here’s how the Nifty has fared in the recent series:

Catch latest market updates here

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Hindalco shares jump 5%; why metal stock is top Nifty50 performer today

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

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Shares of Hindalco Industries gained after two days of consecutive losses and rose more than five percent on Friday, becoming the top gainer on Nifty50. At 11:36 am, the stock was up 5.2 percent at Rs 472.85 on BSE.

Market experts believe rival Alcoa Corporation temporarily shutting down aluminium production at its plant, is a positive for Hindalco which is likely to have pushed the stock higher today.

A news report said that global aluminium major Alcoa Corporation is set to halt primary aluminium production at its plant in Spain for two years.

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The curbs at Europe’s second-largest aluminium plant come after energy costs spiked to fresh records last week, putting heavy industries under a financial strain, the report added.

“With the plant closing temporarily even, aluminium prices which had firmed up are likely to sustain. This means better realisation and sales for Hindalco,” said Purvesh Shelatkar, Head of Institutional Broking, Monarch Networth Capital.

Shelatkar highlighted that Hindalco is the best company in the metal space, on environmental, social, and governance parameters. The stock is a good play from a long-term perspective and is also a potential re-rating candidate from a short-medium perspective, he added.

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Considering the above, Shelatkar believes the stock has the potential to double in a period of one or two years.

Meanwhile, Kkunal Parar, Vice-President Research at Choice Broking said that the stock has given a breakout at Rs 463 today and in the next 2-3 months, the stock could give around 15 percent return.

Parar suggests one could consider Rs 445 as the stop loss with a target of Rs 523-550 from a 2-3 month horizon.

Domestic brokerage firm Sharekhan says ‘buy’ Hindalco shares with a stop loss at Rs 449 and first target of Rs 518 and second target of Rs 552.

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Worst over for Bank Nifty; positive on pharma, IT indices: Goldilocks Premium Research

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

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Gautam Shah, founder and chief strategist, Goldilocks Premium Research, said that the worst might be over for Bank Nifty.

“In two years, the Bank Nifty hasn’t done anything substantial. But now, there are concrete indications on the charts that possibly the worst could be over. All we need is a confirmation past 35,500. Once we get that, you could see a large move on the Bank Nifty all the way back to 37,500-38,000 and even beyond,” Shah said.

He added, “So I’m a little optimistic. I’m a little hopeful the charts are better placed on the Bank Nifty and it could possibly be the reason why the Nifty recovers in the month of January.”

Additionally, he mentioned that Nifty can see levels of 17,600 and even 18,200 in the coming weeks. He explained that 16,000 is the new medium-term base for the Nifty.

“I see many bottoming figures on the charts, all we need is a close past 17,250 and we are above it as we speak. So if the market is able to sustain above that number, you are going to see a trending move on the upside on the Nifty, that takes the Nifty to 17,600 and eventually, possibly even 18,200,” he said.

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On indices, Shah continues to like the IT index. “The IT index has made a phenomenal comeback after three-and-a-half months of consolidation. So that looks good. As we get into 2022, IT is one index that we continue to like. The largecap IT set up looks very solid on the charts,” he mentioned.

He also remains positive on the pharma index. According to him, a lot of the pharma stocks are turning well now. He believes the pharma index can move up as much as 20 percent from current levels.

“The real dark horse or the surprise at least of the first half of 2022 could be pharmaceuticals. It’s been in a corrective mode for the last six months. The comeback in the last 10 days looks excellent. Many of these top pharma stocks are turning from long term support and I do believe that the pharmaceutical index can move up 20 percent from where we are right now,” he explained.

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Shah opined that certain pockets within the market are doing well. He likes auto ancillaries, textile and sugar stocks.

“In the midcap space, we are looking at auto ancillary; we are also looking at textile, sugar and fertiliser. I think these are the three or four pockets that we like,” he said.

On metals, Shah said that he is avoiding the space for now.

“There are some stocks in the metal sector that could turn around but currently, the focus should be on some of the other sectors in the market. So metals for me is an avoid,” he said.

Watch the accompanying video for the full interview.

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V-Mart Retail doesn’t expect a big drop in revenue due to rise in COVID cases

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

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In an interview with CNBC-TV18, Lalit Agarwal, Chairman and Managing Director, V-Mart Retail, said that footfalls will continue as long as stores are open. Agarwal mentioned that demand has been strong so far, however, since last week, there has been a bit of a drop in footfalls due to Omicron fear.

“We have not seen too much of footfall drop, but there is an impact, which has started coming in from last week. We started seeing a little slowdown in footfall from the last week. So, it was almost below the pre-COVID levels,” he said.

On revenue, he doesn’t see a big drop due to rise in the number of COVID-19 cases this time around. He explained that consumption has come up and since the company caters to needs, customers will buy when they need to.

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“The segment that we feed into is the need-based segment, primarily where the need is there, people will have to buy because it is compulsory for them. So that’s how this retail works and it should work. So I don’t think there should be a drop or too much of a drop in revenue, going forward,” he said.

Agarwal mentioned that V-Mart is currently operating 300 stores. Another 74 stores have been added recently. He added that only 20 percent of the additional area has been taken over from Arvind Unlimited group. According to him, the integration has been very good and revenue is back to pre-integration levels.

“We are already operating with existing 300 V-Mart stores. We added 74 stores, which is not even 25 percent of our existing count. So it’s only 20 percent of additional area that we have taken over from the Arvind Group. The integration has been very good. It has come up very well. We have started getting back the original revenue that we were getting before the integration,” he explained.

Agarwal said that the company is looking to digitise as long as it’s profitable as well as convenient for the customers.

“We are aware that digitalization is penetrating and it is taking its own space and it will definitely bring in opportunities for everyone. We have already penetrated into the space; we are still hovering around 1-2 percent of our revenue from the digital channel. But we anticipate that we should reach more than 5-10 percent revenue within two-three years,” Agarwal said.

He added, “We want to still be a profitable omni-retail channel, where we will service our customer, give convenience to customers who reside nearby (our stores) or in the areas where we are not operating and give them those conveniences in bad and difficult times.”

On store openings, Agarwal added that they may see some postponements if COVID threat increases.

“There may be some postponement if the variant rises to a level which is threatening. So we will not want to put our project team at risk and also not open the store in bad times. Our team is preparing to open another 12-15 stores this year. But maybe we will postpone it for some time,” he said.

Watch the accompanying video for the full interview.

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