Tag: Clutter Breakers

Are gold ETFs a good bet in the current market climate?

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

Listen to the Article (6 Minutes)

In the ever-evolving landscape of investment opportunities, gold exchange-traded funds (ETFs) have recently taken center stage. The month of August marked a significant upswing in investor interest, as gold ETFs saw their most substantial inflows in the past 16 months. Now, a question occupies the thoughts of many investors, if this is the right time to invest in the coveted yellow metal.

Gold ETFs are financial instruments that serve as electronic representations of physical gold, securely stored electronically in a dematerialised (demat) account. These ETFs are listed on stock exchanges, providing investors with real-time price updates and the opportunity to buy and sell units just like stocks.

The biggest benefits of gold ETFs are liquidity, there is no exit load, diversification in your portfolio and easy trading.

To gain deeper insights into the current state of gold ETF investments and their future prospects, CNBC-TV18 spoke with Ghazal Jain, Fund Manager – Alternative Investment at Quantum AMC.

Also Read | Gold ETFs witness highest inflows in 16 months: Is it time to invest in the yellow metal?

According to Jain, “Inflows into the gold ETF category over the last year or so have been subdued, mostly due to the US Federal Reserve’s monetary policy tightening, which reduced interest in gold for investors. However, over the last few months, we have seen steady inflows, even amidst robust domestic equity markets.”

Jain emphasised the prudence of investors considering gold at this stage, stating, “Looking ahead, we are approaching the end of the monetary policy tightening by the Fed. This has improved the prospects for gold going forward. Hence, we believe that the momentum in gold ETF inflows we have been witnessing should continue for the rest of the year.”

For full interview, watch accompanying video

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

India’s hydrogen market to surge: Morgan Stanley projects $19 billion opportunity by 2030

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

Listen to the Article (6 Minutes)

The renewable hydrogen sector in India has attracted significant interest, with both listed and unlisted companies making substantial investments. Morgan Stanley estimates that the total addressable market for hydrogen in India could reach $19 billion by 2030, encompassing both blue and green hydrogen.

Blue hydrogen is produced by converting methane and steam into gray hydrogen, which is a polluting form of hydrogen. The process for producing blue and gray hydrogen is the same, but the management of CO2 differs. Carbon capture and storage technology is used to capture CO2 from gray hydrogen production, resulting in the production of blue hydrogen. Although carbon capture technology is still in its early stages in India, many companies are investing in its development.

On the other hand, green hydrogen is considered cleaner as it is produced by splitting water using renewable sources such as solar and wind energy. This process involves the use of an electrolyser, and numerous Indian companies are investing in this technology.

Morgan Stanley’s estimates indicate that the $19 billion hydrogen market in India will be divided among various sectors. The telecom space is expected to account for approximately $0.2 billion, while heavy trucks and buses will contribute around $0.1 billion. Although the usage of hydrogen in commercial vehicles may take some time to gain momentum, the city gas distribution companies are projected to create a $1.6 billion market by 2030 as they blend in green hydrogen.

The refining and fertiliser sectors will have a mandatory 25 percent usage of hydrogen, leading to a market worth between $6.9 billion to $7.3 billion. Steel is expected to be a $2.6 billion market for green hydrogen, followed by cement and shipping at $0.1 billion each.

The significance of the hydrogen market extends to stock markets, as major players have already invested in this sector. For instance, Reliance Industries plans to manufacture low-cost electrolysers for the production of green hydrogen for both domestic and global use. IOC is venturing into green hydrogen projects with the aim of achieving 5 percent green hydrogen production by 2027-2028 and 10 percent by 2029-2030.

ONGC has partnered with Greenko to invest $6.2 billion in renewables and green hydrogen. BPCL will establish a 5 MW electrolyser system for green hydrogen manufacturing, while GAIL plans to set up an electrolyser for producing 4.3 metric tonnes of hydrogen per day.

Read Here | India approves green hydrogen mission at initial outlay of Rs 19,000 crore

NTPC aims to achieve a 5 GW capacity in green hydrogen and ammonia business as part of its 60 GW green portfolio target by 2032. JSW Energy has contracted the production of India’s largest commercial-scale green hydrogen, and Antique predicts that green hydrogen manufacturing will act as a catalyst for growth.

IGL has signed an MoU with ACME to jointly supply green hydrogen and has already set up infrastructure for production. They also see potential in producing green ammonia from green hydrogen. MGL is exploring the green hydrogen space and considering blending it into compressed natural gas (CNG).

L&T has commissioned a green hydrogen plant in Hazira, which produces 45 kg of green hydrogen daily for captive consumption. Additionally, HPCL aims to have a green hydrogen capacity of 24,000 tonnes per year, with plans for gradual expansion.

Currently, the price of green hydrogen stands at $10 per kg, but it is anticipated to decrease to around $2 per kg by 2030.

In fact, a recent report by the International Energy Agency (IEA) suggests that the transition to clean energy presents a significant economic opportunity in India.

Clean technologies such as renewable batteries, green hydrogen, and others could create a market worth up to $80 billion by 2030. Considering Morgan Stanley’s projection of $19 billion from hydrogen alone, it could contribute approximately 23-24 percent.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

Also Read | Definition of Green Hydrogen nearing finalisation, scheme to kickstart manufacturing to be ready in June: MNRE Secretary

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

Aim to grow wealth with companies that adopt innovative strategies: ICICI Prudential

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

Listen to the Article (6 Minutes)

In today’s day and age of Artificial Intelligence, Quantum Computing, hyper-automation, and industry cloud platforms, it is important to stay relevant with your investments too.

In this episode of Smart Money, the focus is on innovation in investing, why innovation is important and what are the different kinds of innovation in 2023.

Anish Tawakley, Deputy CIO—Equity, and Head—Research at ICICI Prudential Mutual Fund, aims to grow wealth with companies that adopt innovative strategies. He added that innovation is the key driver for market cap creation.

Tawakley said, “Typically, in any industry, the market-share gainers are the ones who are innovating. Obviously, there are some exceptions, like commodities, there’s very little innovation, but in most industries, other industries, you find innovative companies gaining market share. If you enter these companies at the right time, at a reasonable valuation, then you end up creating wealth.”

Read Here | India witnessing a bear market rally, EMs underperforming: Bernstein

Talking about innovation in healthcare Tawakley said, “In healthcare, the way technology is being used for diagnoses, for increasing access and then for treatments, right, the treatments that are available today are obviously far more advanced than treatments that were available earlier. The machines that are delivering them are superior, etc. In fact, the entire pharma industry the non-generic part of it is is innovative. So, I mean, in this industry, there’s phenomenal innovation actually at every step of the way.”

For the entire discussion, watch the accompanying video

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

FIRE is a goal to save and invest aggressively to retire early: StockEdge

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

Listen to the Article (6 Minutes)

In this latest episode of ‘Smart Money’, the focus is on an age-old concept that is picking up pace now called FIRE which stands for Financial Independence, Retire Early. This is a movement of people devoted to a programme of extreme savings and investment that aims to allow them to retire far earlier than traditional budgets and retirement plans would permit.

Speaking to CNBC-TV18, Vineet Patwari, Co-Founder & CEO of StockEdge, said in this scenario, retirement is not exactly retirement in the traditional sense, where one would to retire and do nothing.

He said, “It’s an active retirement where you will do things which you want, and you will not be restricted by a job where a particular job description is given to you. So you will create your own job description, and you will be your own boss, that is what retirement means in this case.”

He added, “Earlier retirement used to be like 60 years where one used to invest in a pension fund and retire. Now people are saying Why 60? Why not do something, invest aggressively, save aggressively and retire at the age of 40-45? Why wait till 60? That is the FIRE movement.”

Read Here | As home loan rates rise, should you increase EMI amount or extend the tenure?

On how to calculate the amount you need to retire early Patwari mentioned there is something called the FIRE number; a simple rule of thumb — how much should you invest or how much should you save.

He said, “I will give you a simple number called FIRE number, which is 25 times of your annual expenditures — if you can save that much, so 25 times of your annual expenditure. If Rs 50,000 is your annual (expenditure), you multiply it by 25, the amount will be 25 into 50,000. So this is the amount which you need to save, and you need to reach there. Once you reach there, you can start thinking of retiring, because that amount will help you survive the rest of your retirement.”

For full interview, watch accompanying video

Also Read | Gold jewellery hallmarking mandatory from April 1: Know about the process and what it means for consumers

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

The key factors aiding power PSUs outperformance in 2023

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

Listen to the Article (6 Minutes)

Power sector PSU Stocks have outperformed in 2023. With so much news flow regarding rising demand and the government invoking an emergency clause, CNBC-TV18 takes a deep dive into the power sector.

Demand trends strong

Demand has been strong and grew in February, with peak demand constantly breaching 200 GW on a daily basis. A double whammy of heat waves and the potential impact of El Nino is expected to keep power demand high.

The anticipated higher demand has prompted the Ministry of Power to invoke an emergency clause in Electricity Act, to support imported coal based power plants to restart and to allow a cost pass through.

Generation & PLF trends strengthen

Generation trends have remained strong in February 2023 with over 7 percent growth on a year-on-year (YoY) basis. Plant load factor (PLF) trends have remained very strong in this year as PLFs were at 63.7 percent during April 2022 to January 2023 against 57.4 percent in the same period of last year.

Pricing too has remained strong, and is expected to gain further ground going into the summer season. Merchant power prices gained 8 percent on a month-on-month (MoM) basis in February 2023.

Also Read | Inside India’s plan to avert power cuts as a terribly hot summer looms large

Why have stocks done well in 2023?

It is a combination of factors as utilities are seen as defensive, high dividend yielding bets in volatile environment along with improving fundamentals like PLFs, lower distribution companies (DISCOM) dues, easing supply chain constraints to name a few.

Brokerages stay bullish on these PSU power stocks. All brokerages having a positive stance on NTPC, with HSBC having a price target of Rs 205 per share.

Brokerages on NTPC

Citi is very bullish on the prospects of Power Grid with a target of Rs 275 per share.

Brokerages on Power Grid 

For more details, watch the accompanying video

Catch the latest stock market updates with CNBCTV18.com’s blog

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