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Investors should be defensive in portfolio but opportunistic in approach in the year 2019 through the pre-election period, according to experts.

In its India Strategy 2019 report, brokerage Edelweiss said that the country in 2019 will be “a tale of two halves”. In the first half, it will be “defensive in portfolio but opportunistic in approach”, while the second half would be “measured but an extended upcycle”.

“A day can be long time in politics; an election year will feel even longer for India’s markets,” it said.

The report said the country has been interrupted by global macro shenanigans, a credit scare and an impending election.

This would keep the market volatile and valued around means, and may provide more opportunities than returns, with Nifty to hover around 9800-10500 points till the elections.

The brokerage in its report said it will run a relatively defensive portfolio, with large cap across sectors such as banks, consumer staples, IT, and pharmaceuticals while keeping an eye out for opportunities.

According to the report, one should play safe in the first half when global macros, noise around elections and interpretations of exit polls will have its impact on the market and stocks, while the second half should be “a return to a more optimistic normal”.

“The second half should be a smoother ride,” the report penned by Aditya Narain, Prateek Parekh and Padmavati Udecha said.

The report said in the current year, there has been disruption in fixed income market, a foreign exchange reset and an altered equity market valuation framework.

“That is hurting, but even as it claws back, we see this phenomenon as a cycle interrupted. We do not believe it’s a cycle disrupted,” Edelweiss said in the report.

“And we argue that this business cycle across earnings, de-leveraging, investments, asset resolution and consumption albeit extended and shallower than previous cycles (and expectations) should start rearing its head up,” said the report.

It said that elections are a “dividing line” which is more a “baton change event” than a “finishing one”, considering the diminishing relative market performance across different governments, limited specific economic agendas on display and poor track record of opinion polls and the market.

“The markets ask is for continuity over policy, which sets a low bar,” the report said. The time to reap these gains will be once the interrupted business cycle comes back to the fore, with a little more risk appetite in the economy and valuations become more generous with Nifty around 11,800 by December 2019. However, an unstable government will disrupt the valuation generosity even if it does not disrupt the business cycle, it said.

An analyst, who did not wish to be named, said the market will remain volatile till elections. “The first half of 2019 will be volatile, given it is an election year and we have impending various state elections and the central election. The recent by-polls results indicate that it will be a tough fight between the BJP and the Opposition. Hence, the first half will be a difficult one while the second half will be very good,” the analyst said.

The article was published in DNA as '<a href="https://www.dnaindia.com/business/report-for-stocks-next-year-may-be-a-tale-of-two-halves-2687664">For stocks, next year may be a 'tale of two halves'</a>

Investors should be defensive in&nbsp;portfolio&nbsp;but opportunistic in approach in the year 2019 through the pre-election period, according to experts.

&nbsp;


For stock investors, next year may be a ‘tale of two halves’

Almost one-third of the BSE 100 pharmaceutical companies have missed the average estimate in the quarter ended September 2018, pulled down by the lower sales and anti-trust litigation provision.

Of the seven pharma companies under the BSE 100 index, two companies missed analysts' expectations, with two beating the estimates and the three others matching them. The combined net profit of the seven pharma companies under the S&amp;P BSE 100 has declined 33.97% in the July-September quarter over the same period last year. Revenue from operations, however, increased 3.42% year-on-year basis for these companies.

Last week, Sun Pharmaceutical Industries reported a consolidated net loss of Rs 218.82 crore in the September quarter, due to a one-off anti-trust litigation provision of Rs 1,214.38 crore.

According to brokerage estimates, Sun Pharma was expected to report a net profit of around Rs 950-1,040 crore profit. Revenue during the quarter under review increased 4% to Rs 6,937.63 crore year-on-year, lower than the Rs 7,600 crore estimated by analysts.

Cipla, too, missed the street expectations, while Cadila Healthcare, Aurobindo Pharma and Lupin managed to match it.

Cipla has reported a 11% decline in its net profit to Rs 377 crore, while net sales decline 2% to Rs 4,011.9 crore in the September quarter. Analysts expected it to report a profit of Rs 390-450 crore on net sales of around Rs 4,270- 4,290 crore. While share price of Cipla fell 13.11% since it announced its Q2 result, Sun Pharma shares fell 5.54% since November 13.

Meanwhile, Cadila Healthcare, Aurobindo Pharma and Lupin were able to match analysts' expectations. Cadila reported a 17% decline in its second quarter net profit to Rs 417.5 crore, while its revenue from operations fell 8.1% to Rs 2,961.2 crore. Analysts were expecting it to report a net profit around Rs 410-419 crore on revenue of Rs 3,050 crore.

Aurobindo Pharma, too, posted a 22% decline in its second quarter profit to Rs 611.44 crore on the back of higher expenses, though its revenue increased 7% to Rs 4,751.4 crore in the second quarter. Lupin's net profit in the second quarter plunged 41.5% to Rs 265.98 crore, due to decline in the US business and rising manufacturing costs. Revenue from operations during the quarter was flat at Rs 3,951.06 crore against Rs 3,951.96 crore in the corresponding period last fiscal.

Analysts on an average have expected Aurobindo to post a profit of Rs 600-780 crore, while Lupin to post a profit of Rs 265-273 crore on flat revenue.

On the other hand, Dr Reddy's Laboratories and Divi's Laboratories reported stellar second quarter performance, beating brokerages' estimates. Dr Reddy's reported a 77% increase in its net profit to Rs 503.8 crore on a year on year basis against analysts' expectation of Rs 330-370 crore. Net sales rose 7% on a yearly basis to Rs 3,797.8 crore compared to an estimate of Rs 3,783-3,858 crore.

Divi's Laboratories, too, reported a 92% increase in net profit to Rs 397.65 crore in the second quarter on a yearly basis. Its revenue from operations grew 44% at Rs 1,285 crore during the quarter under review. This surpassed brokerage estimates as analysts were expecting it to post net profit of Rs 250-258 crore on revenue of Rs 997-1020 crore.

According to an analyst, who does not wish to be named, the pharma stocks will not be under pressure, with valuations of some of the companies quite compelling. But despite the sector looking decent at the moment, one needs to wait at least one quarter to see any upside, this person added.&nbsp;&nbsp;

The article was published in DNA as '<a href="https://www.dnaindia.com/business/report-a-third-of-pharma-firms-miss-q2-estimates-2687345">A third of pharma firms miss Q2 estimates'</a>

Almost one-third of the BSE 100 pharmaceutical companies have missed the average estimate in the quarter ended September 2018, pulled down by the lower sales and anti-trust litigation provision.


A third of pharmaceutical companies miss Q2 average estimate

Two public sector undertakings, GAIL and Getco, have approached National Company Law Tribunal (NCLT) separately against Essar Steel lenders’ approval to ArcelorMittal’s bid for the bankrupt steel behemoth, saying operational creditors were left out of it.

In its application with the Ahmedabad bench of NCLT, central gas utility GAIL said the resolution plan submitted by ArcelorMittal “completely fails to protect the interest of operational creditors”.

GAIL said it has claim of Rs 907.20 crore against Essar Steel for gas supplied to the steel company from time to time. Of this, about Rs 125 crore has already been admitted in the list of Essar Steel operational creditors.

“The resolution plan submitted is in contravention of Section 30 (2) of Insolvency and Bankruptcy Code (IBC) 2016. That even otherwise the resolution plan is neither legal nor proper in the interest of all creditors,” it said calling the resolution plan “arbitrary, irrational, illogical that puts in jeopardy the interest of operational creditors,” it said.

Gujarat government’s power transmission company, Gujarat Energy Transmission Company (Getco), said in its petition that Essar Steel owes it transmission / wheeling charges for the period from May 2005 to March 2011.

“Getco has submitted its claim of Rs 827.18 crore as an operational creditor. As of October 31, 2018, an amount of Rs 896.52 crore is due and payable (by Essar Steel) to Getco,” it said.

Getco has asked NCLT not to approve the resolution plan submitted and to revise its admitted claim amount to Rs 896.52 crore.

“The resolution plan is not in accordance with the provision of the IBC, 2016 and IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as it does not reflect the crystallised and legally adjudicated debt/liability of the corporate debtor,” it said.

Last week, operational creditors of Essar Steel had filed three applications for a total value of Rs 600 crore. These included Orissa Stevedores for Rs 20 crore, 29 operational creditors for Rs 360 crore, and Arkay Logistics for Rs 227 crore.

The development comes less than a month after Essar Steel’s committee of creditors rejected the company’s promoters offer to pay Rs 54,389 crore to clear all outstanding dues, including those of operational creditors, and approved ArcelorMittal’s bid to pay Rs 42,000 crore to lenders. Last month, a committee of Essar Steel lenders picked ArcelorMittal’s Rs 42,000 crore proposal to take over the debt-laden company by paying Rs 41,987 crore.

Operational creditors, under the plan, are to get just Rs 214 crore against the outstanding of Rs 4,976 crore. “NCLT does not act as a post office to merely put a seal of approval on the resolution plan cleared by Committee of Creditors. NCLT is compliance of Act and rules and interest of all sets of creditors and if that is not done, NCLT may refuse to put a seal of approval on resolution plan. On the other side, if the resolution plan goes through NCLT, it will bind everyone,” Gail said.

With PTI inputs

This article was published in DNA as <a href="https://www.dnaindia.com/business/report-essar-steel-debt-resolution-hits-fresh-hurdle-as-gail-moves-nclt-2687342">'Essar Steel debt resolution hits </a><a href="https://www.dnaindia.com/business/report-essar-steel-debt-resolution-hits-fresh-hurdle-as-gail-moves-nclt-2687342">fresh</a><a href="https://www.dnaindia.com/business/report-essar-steel-debt-resolution-hits-fresh-hurdle-as-gail-moves-nclt-2687342"> hurdle as GAIL moves NCLT'</a>

Two public sector undertakings, GAIL and Getco, have approached National Company Law Tribunal (NCLT) separately against Essar Steel lenders’ approval to ArcelorMittal’s bid for the bankrupt steel behemoth, saying operational creditors were left out of it.


Essar Steel debt resolution hits fresh hurdle as GAIL, Getco move NCLT seeking rejection of ArcelorMittal bid

Solar power developers would now get some relief by way of impact of Goods &amp; Services Tax (GST) on projects for the period when the new taxation law was implemented.&nbsp;

The Central Electricity Regulatory Commission (CERC) has approved the claims of Rs 2,000 crore raised by solar power developers on the impact of the introduction of the Goods and Services Tax (GST) on their capital cost.

This one-time payment will be made by the electricity distribution companies, or discoms. The order by CERC came in after several petitions were filed with the regulator due to ‘change in law’ that came in on implementation of GST.

However, the projects covered under the relief are only those projects that were commissioned after July 1, 2017.

Sabyasachi Majumdar, group head &amp; senior vice-president (corporate ratings) Icra, in a statement said, “This is a positive development for the solar power developers. However, the timely release of allowed compensation by the respective state-owned distribution utilities (being the main off-takers) remains crucial…Considering 75% of the capacity commissioned during this period to be under the competitive bidding regime awarded prior to July 2017 (that is prior to introduction of GST), the one-time compensation towards GST impact to be paid by discoms to solar power developers is estimated at about Rs 2,000 crore on all-India level.”

In India, capacity of 10.9 gigawatt solar power has been commissioned between July 2017 and September 2018, with most of the projects being awarded prior to July 2017. 
As per the CERC order, the claims related to operation &amp; maintenance and its impact of GST on expenditure were not allowed.

The CERC has also stated that the developers must exhibit clear and one to one correlation between the projects, the supply of goods or services and the invoices raised by the supplier of goods and services backed by auditor certificate.

These claims will have to be paid within 60 days of issuance of the order, which means the payment will have to be done by December 8. CERC’s order had come on October 9.

In case of delay in the payment, late payment surcharge as provided in the power purchase agreements will have to be paid by the discoms.

“While CERC in its order has allowed the applicable GST at 5% on photo voltaic (PV) modules, there continues to be an ambiguity on GST rate applicable on PV modules supply under EPC contract given the recent ruling of 18% GST on solar EPC projects by Authority of Advance Ruling in Maharashtra. In this context, the clarity is required on the applicable GST rate on PV modules for the sector,” said Majumdar.

&nbsp;Introduction of GST regime had a negative impact on solar power projects due to increase in capital cost arising from higher tax rate applicable under GST, given that the solar power sector has been availing exemptions and concession rates on excise duty, customs duty and Value Added Tax for procurement of PV modules, mounting structures and electrical equipment, etc. The GST Council has approved 5% rate for solar PV generating systems, as against the prevailing regime of exemption from excise duty and customs duty as well as exemption or concession VAT rates across various states.

Meanwhile, on the bidding front, solar power developers continue to be reluctant in bidding for the new tenders that the government is coming out with.

Apart from that, developers are also facing liquidity crunch for arranging funds even for existing projects in hand.

This story first appeared in DNA Money: <a href="https://www.dnaindia.com/business/report-solar-firms-to-get-rs-2000-cr-towards-gst-impact-2687350">Solar firms to get Rs 2,000 cr towards GST impact</a>

&nbsp;

The Central Electricity Regulatory Commission (CERC) has approved the claims of Rs 2,000 crore raised by solar power developers on the impact of the introduction of the Goods and Services Tax (GST) on their capital cost.


Solar firms commissioned after July 1, 2017 to get Rs 2,000 cr towards GST impact

Bungee jumping is an adventurous sport but not many have the courage to try or experience the jump. The visual of someone jumping down hundreds of feet is enough to scare the bravest of brave. Yet there are some who go for it for the sheer thrill that it provides and there are others who would prefer less daring sports to match with their thrill-seeking capacity.

If a lesser thrill-seeking enthusiast is forced to do bungee jumping, it could turn into a disaster. First timers who go prepared and experience the thrill may want to return for more, but there could be others who would prefer not to repeat the experience.

Investing is one such area where one needs to be aware of the nature of investment and the ups and downs that one may have to go through. Many first-time investors who entered the market in the last one year by observing only one year’s performance would have certainly chosen a lot of small-cap and mid-cap equity schemes as these categories did extremely well till a couple of months back. The prospect of earning higher returns seemed to be an easy job as the indices were moving up consistently. They would be ruing their decision on why they ever invested in the first place without understanding the risk involved. Some would have already decided to redeem their investments at a loss.

This situation is not new and keeps playing over and over. The abundant amount of information flow, day in and day out, from various forms of media, only adds to the confusion and very few investors try to make sense of the information flow or hire an advisor to seek guidance.

The ideal way to invest would be to first ascertain your financial goals and then decide which asset class would help achieve that goal based on time horizon, return expectation and risk profile. For example if your goal is to go on a foreign vacation in one year’s time and you have kept aside funds for that purpose, then you need to invest those funds in a safe and fixed interest instrument such as fixed deposits or liquid funds. You cannot expect equity schemes to provide this stability and fixed returns in one year’s time.

Similarly, if your retirement goal is nearly 10 or 15 years away, then even a lumpsum investment today in equity funds will be the best option. Over such a long time horizon, equities have known to deliver good returns. Another important factor is to select the right category or equity schemes depending on time horizon such as large cap, multi cap, mid cap, etc.

It is advisable for investors to first understand how different types of mutual funds work and set the right expectations before investing. Seek a good advisor’s help if you don’t have the time to do the research yourself. Avoid reading too much into daily market movements, else you will not be able to remain invested peacefully even if your goal is quite some time away.

By,&nbsp;Steven Fernandes

(The writer is a Sebi-registered investment advisor)

This article was first published in DNA as <a href="https://www.dnaindia.com/personal-finance/report-don-t-pick-equity-funds-based-on-returns-alone-2687061">'Don't pick equity funds based on returns alone'</a>

Equity funds returns: You can lose money if you invest on basis of this

The yield on the 10-year government security (G-sec; 7.17 GS2028) hardened considerably in Q2 FY2019 and peaked at 8.18% on September 11, before cooling off to around 7.7-7.8% in mid-November 2018. It is expected to trade in a wide range of 7.6-8% in the remainder of Q3 FY2019, driven by domestic and global factors.

Crude oil prices have charted a volatile path in recent months, which has rapidly transmitted into both bond yields and the US$-INR cross rate, given their impact on inflation and the twin deficits. The price of the Indian crude oil basket rose to US$85.2/barrel on October 4. However, it has eased sharply to US$65.6/barrel on November 15, driven by the announcement of exemptions from US sanctions on Iran for eight jurisdictions, including India, and some concerns on over-supply. Moreover, after displaying a substantial depreciation from April 2018 to mid-October 2018, the rupee has appreciated around 2% relative to the dollar in subsequent sessions.

The price of the Indian crude oil basket appears likely to remain considerably lower in the immediate term, than the average of US$80/barrel in October 2018. Nevertheless, supply-demand balances, geopolitical developments, and concerns regarding the impact of trade wars on global growth would continue to impart volatility to crude prices and the outlook for bond yields.

Following the correction in the CPI inflation to 3.3% in October 2018, and the pullback in crude oil prices and the rupee, concerns regarding the trajectory of inflation have receded considerably. Accordingly, the Monetary Policy Committee is likely to leave the repo rate unchanged in the December 2018 policy review, despite having revised the monetary policy stance to calibrated tightening in October 2018, which would contribute to keep G-sec yields steady.

In a daily average basis, systematic liquidity shifted from surplus in the first quarter of this fiscal to deficit in Q2. To infuse durable liquidity, the Reserve Bank of India (RBI) conducted open market operations (OMOs) to purchase G-sec of Rs 86,000 crore in April-October, and has announced additional OMO purchases of Rs 40,000 crore in November.

Systemic liquidity conditions are expected to remain tight in this quarter, on account of the harvest, marriage season, legislative elections, upcoming advance tax payment and busy season for bank credit. 
Overall, we expect G-sec yields to continue to display two-way volatility and range between 7.6-8% in the remainder of Q3 FY2019.

By, Aditi Nayar 
(The writer is&nbsp;principal economist, Icra)

This article was first published in DNA as <a href="https://www.dnaindia.com/business/column-bond-yields-may-harden-by-q4-as-various-fiscal-risks-persist-2687048">'Bond yields may harden by Q4 as various fiscal risks persist'</a>

The yield on the 10-year government security (G-sec; 7.17 GS2028) hardened considerably in Q2 FY2019 and peaked at 8.18% on September 11, before cooling off to around 7.7-7.8% in mid-November 2018.


Expect G-sec yields to continue to display two-way volatility  

Launched in June 2004, Tata Equity P/E Fund was classified as a diversified equity fund in CRISIL Mutual Fund Rankings (CMFR) up to December 2017. Subsequent to the reclassification of mutual funds by Sebi, the fund was repositioned as a value fund and was ranked in the top 30 percentile in the value/contra funds category of CMFR in the last three quarters ended September 2018.

Sonam Udasi and Amey Sathe have been managing the fund since April 2016 and June 2018 respectively. The investment objective of the scheme is to provide reasonable and regular income and/or possible capital appreciation to its unit holders. The fund’s month-end assets under management (AUM) increased from Rs 611 crore in November 2015 to Rs 4,746 crore in October 2018.

Trailing returns 
The fund has outperformed the benchmark (S&amp;P BSE Sensex TRI) across the past three, five, seven and 10-year trailing periods and the category (represented by funds ranked in the value/contra funds category in the CMFR - September 2018) across the past two, three, five, seven and 10-year trailing periods.

An investment of Rs 10,000 in the fund on June 29, 2004 (inception of the fund) would have grown to Rs 1,26,908 (19.32% CAGR) on November 14, 2018 vis-a-vis the benchmark’s Rs 89,614 (16.47% CAGR) and the category’s Rs 1,19,234 (18.8% CAGR).

SIP returns 
A monthly investment of Rs 10,000 via a systematic investment plan for 10 years would have grown to Rs 27.51 lakh (XIRR 15.96%). A similar investment in the benchmark would have grown to Rs 22.17 lakh (XIRR 11.9%).

Risk-reward matrix 
The fund delivered higher average daily returns over the past three years compared with the benchmark and peers at the expense of higher volatility than the benchmark.

Portfolio analysis 
The fund has invested across market capitalisation with predominant allocation to large caps ranging from 32.6% to 74.19% (averaging 49.71%) in the past three years. Exposure to mid- and small-cap stocks averaged 23.76% and 18.41%, respectively, during this period.

At a sectoral level, the top five sectors formed 49.65% of the fund’s equity portfolio, on average, in three years. The finance sector was the largest constituent of the equity portfolio in the past three years, followed by banks, auto, power, and software. --- Crisil Research

This article was first published in DNA as <a href="https://www.dnaindia.com/personal-finance/report-tata-equity-pe-fund-aims-to-provide-income-increase-capital-2687060">'Tata Equity P/E Fund aims to provide income, increase capital'</a>

Diversified Tata Equity P/E Fund outperforms the benchmark across three, five, seven and 10-year trailing periods

The smartphone is not just smart, it’s also what psychologists call a ‘child behavioural catalyst’. It means children, especially aged 3-12, imbibe the characters they see on cartoon shows and often start behaving like them. Not to forget the effect smartphones have on a child’s tactile growth and academics.

Five-year-old Javed from Ludhiana in Punjab has been exposed to a smartphone since he was three. “We found he was refusing to hold the pencil in his hand because he was used to a touchscreen. Every time we forced him to write, he would find excuses and run away,” father Akram says.

It’s not an isolated case. Doctors and psychologists are flooded with cases of children living delusional lives and increasingly displaying anti-social behaviour. Dr Sagar Mundada, a psychologist in Mumbai, says smartphones are making children lonely. “They prefer to spend time with the devices rather than friends and family.”

Dr Arjun Ahuja, an ophthalmologist, says increasingly more children make up his patient base. “They come with watery eyes, and we all know why.” Parents, who initiated this phone fixation in the first place, are now beginning to see their folly and remedy it by referring their wards to medical and psychological help. They are also trying to limit phone usage.

Watch this Zee Business video here:

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" scrolling="no" src="https://www.youtube.com/embed/YpWXHXxwkaM" width="100%"></iframe>

Schools, on the other hand, are quite divided. While some swear by ‘technology’ to develop the child’s capabilities, others are advocating ‘limited phone time’.

Javed’s parents have taken one giant step. They have stopped using phones at home. “That is the least we can do to make our child grow at his pace,” says mother Shahnaz, “We want him to play outside and enjoy clean air, not sit at home.” Since the family set-up is that of a joint family, they can always a relative’s phone during emergencies. “We don’t miss having a phone anymore,” Shahnaz says.

This article was first published in DNA: <a href="https://www.dnaindia.com/india/report-smartphones-have-won-over-gilli-danda-2686789">Smartphones have won over gilli-danda</a>

The smartphone is not just smart, it’s also what psychologists call a ‘child behavioural catalyst’. It means children, especially aged 3-12, imbibe the characters they see on cartoon shows and often start behaving like them.&nbsp;


This is how smartphones affect child’s tactile growth and academics

Balram Singh Yadav, managing director, Godrej Agrovet, in an interview with Swati Khandelwal of Zee Business, talks about the company’s revenues in the July-September quarter, the impact of Kerala floods and palm oil business, among others.

Godrej Agrovet has posted good results in the July-September quarter. What were the key drivers for growth in terms of margins and profitability? 
Our consolidated income in the second quarter of this fiscal was Rs 1,622 crore, which was 13.1% growth over the year-ago period. Our profit before tax (PBT) stood at Rs 155 crore, which was almost 17.9% growth over Q2FY18. For the first half, the income was Rs 3,110 crore, which was over 11% higher, PBT was Rs 265 crore, about 13.7% high over the year-ago period.

&nbsp;We have seen low profitability in the aquafeed business? Did the anti-dumping duty enforced by the US on shrimps had any impact on your business? 
Exports and price decline of shrimps had an impact on every company associated with the aquafeed business. Besides, there was a volume growth of 19.5% in the animal feed business in the first half of the financial year, a quarterly record. It is low on profitability, but it is a part of a strategy in which we are trying to increase the volumes at the cost of margins. The strategy is backed by our installed production capacity, that is 2.3 million tonne, and our sales stand around 14 lakh tonne. This is a business where profitability will follow the volumes, and we hope that volume growth will help us to increase our profitability in the future quarters.

Did Kerala floods have any impact on your business? 
Our cattle feed business is quite big in Kerala, and definitely we faced certain hiccups due to the floods. The recovery process, which was fast, helped us contain the problems within a fortnight or so. In addition, we also tried our best to provide animal feed to the affected regions during the crisis time.

Palm oil forms 14% of your revenues. Do you think that postponement in the palm season will have an impact on your palm business? What is your outlook for it? 
There is a postponement of a month, but the October numbers suggest that we will be able to meet our planned growth target, which is to grow in double digits. Such shifts are available in crops, animal agriculture, pure agriculture as well as plantation, and thus this shifting is not a new thing for Godrej Agrovet.

You have plans for capacity addition in the crop protection segment and were in collaboration talks with a Japanese firm. Kindly provide details related to it? 
In-licensing arrangement is in the process and 5-6 molecules have been sent for registration, which will be launched during 2020-22. In fact, we are working with three-four companies and will be sending every molecule to be registered. I feel in-licensing molecules will contribute to our crop protection business.

Godrej Agrovet has witnessed de-growth in Bangladesh. What is a reason for that decline? What is your view on Agrovet’s business in other markets? 
The animal protein market, particularly chicken, eggs and meat, behaves on the global level. If there was a glut of milk in India then it doesn’t mean that there was a shortage in other countries. Situations are similar in Bangladesh, where we have increased our chicken, egg and fish business, but it didn’t pay us off in past 6-9 months. But there is an improvement since the past three months. Cyclicity in the animal protein business is determined by the number of links in the global market.

Can you provide an update on the amalgamation of Astec and Godrej Agrovet? 
It is a process that is on, and we will have to follow the procedures in the process. In fact, we will have to take a permission from NCLT and that’s why I feel that the process will complete in the next six-nine months.

This story first appeared in DNA Money: <a href="https://www.dnaindia.com/business/interview-we-faced-hiccups-during-kerala-floods-says-balram-singh-yadav-godrej-agrovet-2686143">‘We faced hiccups during Kerala floods’</a> 
&nbsp;

Balram Singh Yadav, managing director, Godrej Agrovet, in an interview with Zee Business, talks about the company’s revenues in the July-September quarter, the impact of Kerala floods and palm oil business, among others.


Recovery process during Kerala floods helped us contain problems within a fortnight: Balram Singh Yadav, Godrej Agrovet 

Yes Bank’s shares remained one of the most volatile stocks in the banking sphere in 2018. On Thursday, the shares plunged 7.42% after its non-executive independent chairman Ashok Chawla resigned the previous day.

Yes Bank, in a regulatory filing on Wednesday evening said Chawla has resigned with immediate effect as he felt the bank would need a chairman who could devote more time and attention during this transition period when its managing director and chief executive Rana Kapoor is on his way out after the Reserve Bank of India (RBI) refused to give him an extension.

However, media reports said that Chawla, who is also the chairman of NSE and former finance secretary, has resigned from the private lender’s Board after being named in a corruption charge-sheet by the Central Bureau of Investigation (CBI) in the Aircel-Maxis case.

In another regulatory filing on Wednesday, the bank said its another independent director Vasant Gujarati has also resigned with immediate effect due to personal commitments. Gujarati was the chairman of the bank’s audit committee. He was replaced by Uttam Prakash Agarwal, former president of Institute of Chartered Accountants of India. Yes Bank’s Board has approved Agarwal as an additional independent director and subsequently as an independent director for a period of five years, subject to shareholders’ approval.

On Thursday, the stock touched a high of Rs 218 and a low of Rs 202.30 before closing at Rs 206 apiece. The share price has been on a downward move since September 21 after RBI refused to grant an extension to Kapoor to continue as MD and CEO. His term will end on January 31, 2019. On September 21, YES Bank’s share closed at Rs 227.05, 28.71% lower than its previous close.

This year, the stock touched a 52-week high of Rs 404 on August 20 and a low Rs 166.15 on September 28 on BSE.

The bank made a plea with the RBI to extend Kapoor’s term till at least April 2019 but it was rejected. RBI, on the other hand, has asked YES Bank to ensure that a replacement is in place from February 1, 2019. At a time when the private lender is struggling to find Kapoor’s replacement, it now has to look to fill the position of the chairman as well.

This article first appeared in DNA Money as <a href="https://www.dnaindia.com/business/report-yes-bank-most-volatile-bank-stock-in-2018-2686170">'YES Bank most volatile bank stock in 2018'</a>

Yes &nbsp;Bank’s shares remained one of the most volatile stocks in the banking sphere in 2018. On Thursday, the shares plunged 7.42% after its non-executive independent chairman Ashok Chawla resigned the previous day.

&nbsp;


Yes Bank share price shocker! Not just Rana Kapoor exit, this resignation too sparks negativity

New Delhi: Telecom regulator Trai will soon decide whether any regulatory imbalance exists between telecom players and over-the-top (OTT) players such as WhatsApp and Skype. On Monday, Telecom Regulatory Authority of India (Trai) issued a consultation paper, ‘Regulatory Framework for Over The Top Communications Services’ to analyse and discuss changes that may be required in the current regulatory framework to govern these entities and the manner in which such changes should be effected.

It has been a long-standing demand of incumbent telecom services providers (TSPs)&nbsp; to bring over-the-top players under the ambit of regulation. DNA Money had reported on November 6 about Trai’s plans to come out with a consultation paper on OTT players this month.

The scope of the current consultation would revolve around regulatory issues and economic concerns pertaining to those OTT services that are same or similar to the services provided by telecom companies.

In the consultation paper, the telecom regulator has sought comments from the stakeholders on a host of issues.

Watch this Zee Business video here:

<iframe allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="" frameborder="0" height="315" scrolling="no" src="https://www.youtube.com/embed/R3LIXFh3TNI" width="100%"></iframe>

One of the points where the regulator has asked for comments is which over-the-top services should be regarded as the same or similar to those offered by telecom service operators and if “substitutability” should be the main criteria for comparison of regulatory or licensing rules applicable to telecom companies and OTT service providers.

“The objective of this consultation paper is to analyse and discuss the implications of the growth of OTTs, the relationship between OTT players and TSPs, the similarity, if any, between services provided by the TSPs and OTT players,” Trai said in a statement.

It also asked whether regulatory or licensing imbalance is impacting telecom network investments especially required for capacity expansions and technology upgradations, and how OTT service providers can participate in infusing investment in the telecom networks.

 
This article was first published in DNA Money: <a href="https://www.dnaindia.com/business/report-trai-to-decide-if-regulatory-imbalance-exists-between-telcos-and-ott-players-2685059">Trai to decide OTT control</a>

Telecom regulator Trai will soon decide whether any regulatory imbalance exists between telecom players and over-the-top (OTT) players such as WhatsApp and Skype.&nbsp;


WhatsApp and Skype under Trai scanner over 'imbalance'

The real estate sector was in for yet another dim Diwali, particularly the residential segment, thanks to the recent liquidity crisis in the non-banking finance companies’ (NBFC) sector triggered by IL&amp;FS default. However, the business might be better than the last year in the affordable segment.

On the sales front, the picture is not rosy for the developers who had anticipated pushing higher sales to recover the lost cash flow due to government’s frequent policy-related decisions like demonetisation, Real Estate Regulatory Authority (RERA), Goods and Services Tax implementation, etc.

“The tight liquidity situation in the festive season and rising interest rates will impact the like housing sector. The situation, therefore, demands that the RBI (Reserve Bank of India) and the government should work to bring in measures to improve the liquidity scenario in the coming months,” said Rashesh Shah, president, Federation of Indian Chambers of Commerce and Industry and chairman and CEO of Edelweiss Group.

“Funding a project is getting tougher by the day. Post the real estate regulation law implementation, lenders are willing to fund projects that are clean and RERA-registered. But what we saw over a period of time is refinancing of existing loans,” said a realtor.

Another industry insider told DNA Money, “This is India’s Lehman Brothers crisis moment,” adding that there will be a slowdown in residential project launches too.

“Usually, new projects are launched in the festive season with some branding and marketing activity, but we aren’t witnessing the usual fervour this Diwali; expect some sales in the affordable housing segment.”

National Housing Bank’s statistics show that in 2017-18, the individual home loans market grew at 21% to Rs 13.1 lakh crore.

This growth was inclusive of public sector banks (PSBs) as well as housing finance companies (HFCs), which together account for 95% of the retail home loan market. The NHB data does not include loans by private banks.

In the overall market, the PSBs and private banks share overall market share around 55%.

According to Confederation of Real Estate Developers’ Associations of India (Credai), the government should intervene to ease the credit freeze in the realty sector amid the lack of availability of funds to developers for completion of real estate projects.

This scenario is leading to an adverse impact on the entire real estate ecosystem, with the homebuyers not getting timely possession.

At present, the industry is trapped in a downward spiral of unfinished projects and tapering off of demand. At a time when developers are under immense pressure to deliver projects on time, financial institutions are cancelling disbursements after the loans have been sanctioned leading to the non-adherence of timelines specified to home buyers.

“As a result of NBFC crisis, it can be expected that home loan interest rates will see a slight rise in the near future, primarily brought on by the dearth of funds. NBFCs will also be a lot more cautious about disbursing loans and will be conserving liquidity till the market returns to normalcy. This can reasonably be expected to put an upward pressure on home loan rates. Along with the formal banking system, NBFCs that provide home loans to individual homebuyers will tighten their norms around home loan disbursements,” said Anuj Puri, chairman, Anarock Property Consultants in a statement.

Hence, this will have a direct negative impact on sales as well as on those apartments that have already been booked and loan disbursement gets suspended.

“The absence or scarcity of home loans to homebuyers could exacerbate the already protracted slowdown in residential demand in the short to mid-term. All in all, the non-baking financial companies’ crisis has rattled the real estate industry to the core much more than the disruptions that recent policy implementations brought on - and now consolidations will galore. Only the fittest will survive this perfect storm,” said Puri.

Source: DNA Money

The real estate sector was in for yet another dim Diwali, particularly the residential segment, thanks to the recent liquidity crisis in the non-banking finance companies’ (NBFC) sector triggered by IL&amp;FS default.&nbsp;

&nbsp;


NBFC liquidity crunch dims real estate sales this Diwali

Rashesh Shah, president of industry body Federation of Indian Chambers of Commerce &amp; Industry (Ficci), has called for measures to improve liquidity within the system and increase the flow of money to tide over the crisis faced by the industry. Shah made the comment while speaking with reporters after Ficci’s national executive committee meeting here, where members of the industry body raised concerns about liquidity crunch, economic slowdown, and other issues.

“There is a liquidity crunch being faced by the industry, by everybody. Part of it is because of global events, but partly, also because everybody is hoarding cash. We have a lot of liquidity, but it is not circulating fast enough. This, coupled with the IL&amp;FS event, has taken some confidence away. It has led to caution, and people hoarding cash, and as a result (impacted) circulation of liquidity,” Shah said.

He said there is a need to do things to improve liquidity as a whole, but along with that, steps are needed to increase flow within the system. “We need more money, more liquidity in the system; more money flowing within the system,” he said.

In the Ficci meeting, industry representatives also expressed concerns over other global and local headwinds.

“People are concerned about the economy slowing down. When rupee falls, exports should get a boost, but people feel that the exports may not be able to step up as much due to the global trade war that is going on. These are areas of concern,” he said.

Asked about India’s big leap from 100th to 77th position in World Bank’s Ease of Doing Business ranking, the Ficci chief said, “These rankings are driven by change in how India conducts business. I think Real Estate Regulatory Authority (RERA), Insolvency and Bankruptcy Code (IBC), goods and services tax (GST), putting municipal records, land records online - all of these go towards Ease of Doing Business. Quite a few structural changes have been made, and this is what is getting reflected in the rankings.”

However, he said that a lot more work needs to be done at the municipal and panchayat level to usher in transparency in decision-making and accounting, especially things such as construction permits.

“Labour laws and land laws need to be eased. (We also need) transparency in the approval process at the state level. There is a lot more to be done, but I think if we can continue with these, India will be under 50 in the rankings pretty soon, and I think being there would be a good achievement for India,” he said in response to a question about areas where India is lagging and needs to improve.

Source: DNA Money

Rashesh Shah made the comment while speaking with reporters after Ficci’s national executive committee meeting here, where members of the industry body raised concerns about liquidity crunch, economic slowdown, and other issues.


To tide over crisis faced by industry, Ficci calls for measures to improve liquidity

Coal India Ltd’s (CIL) share sale to institutional investors on Wednesday was subscribed 1.06 times, with the company receiving bids for around Rs 4,200 crore.&nbsp;As per data available on the National Stock Exchange, of the 14.89 crore shares on offer on, non-retail investors put in bids for 15.84 crore, worth Rs 4,213.5 crore. CIL’s share price closed 3.53% lower over the previous close at Rs 266.15 apiece on BSE, which is equivalent to the floor price.

On Tuesday, the government announced its plan for an offer for sale as it aims to raise around Rs 14,000-14,500 crore through dilution of 9% stake in CIL. The government expects to raise around Rs 80,000 crore through disinvestment process in this fiscal, and the stake dilution in CIL is the first big-ticket share sale by the government this year.

The Centre, which holds 78.32% in the state-owned coal miner, is looking to sell 18.62 crore or 3% of equity shares to institutional and retail investors, with an option to sell an additional 37.24 crore or 6% of equity shares through a greenshoe option.

The 3% stake dilution will reduce the government holding to 75.32%. In case, the greenshoe option is also exercised, it will bring down the government holding to 69.32% and would help raise around Rs 9,907 crore. As per the Sebi norm, the minimum public holding in a listed entity should be at least 25%. If fully subscribed, the 3% stake sale would fetch the government around Rs 5,000 crore..

According to a regulatory filing on Tuesday, around 20% of the offer size is reserved for retail investors, who will be allocated shares at a discount of 5% to the cut-off price.

The cut-off price, the lowest price at which the offer shares will be sold, will be determined on the basis of all valid bids received in the non-retail category on October 31, it added.

This means 3.72 crore shares, with an additional option to sell up to 7.44 crore shares, will be available to retail investors at a discount of 5% to the cut-off price. Any unsubscribed portion of the retail category, after allotment, shall be eligible for allocation in the non-retail category in respect of their unalloted bids on October 31 who choose to carry forward their bid to Nov&nbsp;1.

According to a company official, the discounted price for retail investors is around Rs 253 per share.

Source: DNA Money

The Centre, which holds 78.32% in the state-owned coal miner, is looking to sell 18.62 crore or 3% of equity shares to institutional and retail investors, with an option to sell an additional 37.24 crore or 6% of equity shares through a greenshoe option.


Coal India stake sale: This is who lapped up offer

The government on Wednesday again asked WhatsApp to provide location and identity of persons spreading misinformation which is leading to violent incidents. The government said it does not want WhatsApp to decrypt messages sent on its platform.

In a meeting with WhatsApp vice president Chris Daniels, IT Minister Ravi Shankar Prasad said the government does not want WhatsApp to decrypt and read messages but rather wants information on the location of the person responsible for triggering fake news/messages.

“When we talk of traceability, we don’t talk of decrypting the messages but we insist on location and identification of the original sender of WhatsApp messages when such messages lead to provocation of violence, heinous offences and other serious crimes,” Prasad said. The messaging app owned by Facebook has assured of looking into this, the minister said.

The tussle between the government and WhatsApp on the issue of spreading fake news has been going on for few months since the company expressed its inability to provide traceability of messages on its platform as it will undermine the privacy of its users.

WhatsApp has appointed a grievance officer for India, based in the US but the ministry is keen on having an officer be located in India. WhatsApp also informed that they have incorporated a company in India and will start operations soon.

Since the issue has come to forefront, WhatsApp has taken various measures to this effect such as limiting forwarded messages to five chats at a time, addition of a forward label to messages, a radio campaign to spread awareness on misinformation and tie-up with Digital Empowerment Foundation (DEF) to create awareness among its users about the need to verify information.

In a separate event, Daniels said the company is focussed on values such as security and privacy to ensure that its product remains a utility that helps users communicate in everyday life.

WhatsApp has about 200 million people in India, its biggest market.

Following multiple incidents of mob lynching across the country, the government had slapped WhatsApp with two notices, with the second one warning that it will treat the messaging platform as an abettor of rumour propagation and legal consequences will follow if adequate checks are not put in place.

Prasad had met Daniels in August this year too, and apart from the traceability request, he had asked WhatsApp to set up a local corporate entity and appoint a grievance officer to address complaints.

“I met Chris Daniels, along with his team, on Wednesday and discussed various issues of the past. They have assured us that they have appointed a grievance officer for India. I have suggested that we will appreciate if grievance officer is also located in India,” Prasad said.

Daniels declined to comment on the specifics of the meeting.

The minister said that during the meeting, he also emphasised that WhatsApp is an important instrument of message circulation even during elections, and hence its institutional integrity is paramount.

Source: DNA Money

The tussle between the government and WhatsApp on the issue of spreading fake news has been going on for few months since the company expressed its inability to provide traceability of messages on its platform as it will undermine the privacy of its users.


DNA Money Correspondent