Innholdsfortegnelse for 12-Jul-20 i Business Today

It’s up. It’s down. It’s up, but down. Down, but up. Huh! If you’ve been trying to make sense of the stock markets, then you aren’t alone. Millions get exasperated deciphering every move of the markets. Especially today. Whether it’s the unflinching faith in the power of the Indian economy and corporates or just irrational exuberance, despite the fall the markets are trading at double the valuation of the Lehman crisis in 2008. The December, 2019 peak was, in fact, higher than the Lehman peak. But bare facts would tell you, the sharp recovery after a precipitous 39.4 per cent cent fall since January and a sustained run in the stock markets is built on pretty weak fundamentals. Corporate earnings are on a slippery wicket, and will continue to be…

The Union government earned only ₹50,304 crore from disinvestment in FY20, against the Budget target of ₹1.05 lakh crore. This was later revised downwards to ₹65,000 crore. The government failed to push asset sales due to poor market conditions Tax revenues were 90 per cent of revised estimates for the year Capital expenditure was 97 per cent of revised estimates. The government held back on capital spending to bring fiscal deficit under control Fiscal deficit hit a seven-year high of 4.6 per cent of GDP (as against the revised target of 3.8 per cent of GDP) The reason was shortfall in revenues in the wake of slowing GDP growth. Excluding agriculture and community services, real gross value added grew 1.1 per cent in fourth quarter of FY20, the lowest since…

Budget 2020 reduced the allocation to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) by 13.5 per cent (to ₹61,500 crore) from the previous revised estimate of ₹71,000 crore citing lower requirements. This was before coronavirus had set its foot in India. By mid-May, when the pandemic was wreaking havoc across the country, the government increased allocation to MGN-REGS by ₹40,000 crore, taking the total to ₹1.01 lakh crore, to support lakhs of migrant workers forced to go back to their villages after being rendered jobless due to the lockdown. This is just one example of how the economic crisis due to the lockdown has thrown the Central government’s FY21 Budget – both revenue and expenditure – out of gear. Considering that revenues have taken a huge dent due…

Come up with a white paper on total liabilities, off-balance sheet debt, guarantees Present a roadmap to global rating agencies on the timeframe for fiscal consolidation Develop the bond market; reduce reliance on banks for lending Adhere to a strict fiscal consolidation path; Targeted approach to bring down deficit to 3% Diversify borrowing into masala bonds or millennium bonds to avoid crowding-out effect in the domestic market Reduce trade and current account deficit to avoid currency depreciation…

Private hospitals are complaining that their foot-falls have fallen considerably during the lockdown. What has been the experience of PMJAY-empanelled hospitals? In the last two months, or after March 23, we have seen a significant drop in admissions. Before March 23, we were doing 25,000-30,000 hospital admissions/treatments per day, but after the lockdown, we are down to 12,000-13,000. This is more than a 50 per cent drop. The drop has been more in some states as compared to others. We have also seen that the drop has been more in private sector hospitals rather than public sector hospitals. Why So? We are looking at the reasons. The fear factor is one obvious reason. People don’t want to go to hospitals for elective procedures as they are afraid they may get…

During his stay at the Sheraton Grand Bangalore Hotel at Brigade Gateway in January, Delhi-based executive Rishabh Gupta did not have to stand in queue at the front desk. Instead, he used the hotel’s mobile key to check-in, and accessed the room key using his smartphone. While hotels have been investing in consumer-connect technologies for over a decade, it has now found more takers after the Covid-19 outbreak, with social distancing being the new norm. According to industry experts, technology can bring down the operation cost of a hotel by 15-40 per cent, or even more, depending on the property (boutique or budget hotel), footfall, and the kind of systems deployed. “Travel and tourism is among the fastest-growing sectors in India, contributing nearly a tenth to the country’s GDP ($247.3…

Longer grace period of 30 days for policy renewal without coverage in the gap period Any increase in premium of modified or new policy can be done only after three years Freedom to migrate to another policy or insurer if existing policy changes or is withdrawn No charges for porting due to changes in existing product Easier claim rules for those holding multiple policies More incentives for renewal and adherence to good health habits…

What do some of the sharpest minds in the world do in the middle of a pandemic? Well, they play Bridge, online. Billionaires Bill Gates, Founder, Microsoft, and Warren Buffett, Chairman and CEO, Berkshire Hathaway, regularly play the game (which requires brainpower and strategy) with each other. It is believed that playing Bridge keeps people sharper for longer. In his blog, GatesNotes, Gates writes, “I have been playing bridge for years — Warren Buffett is my favourite partner. We don’t get together in person now that we’re sheltering in place, but we still play online.” It is believed that people who engage in mentally stimulating activities experience slower memory decline than those who do not. Buffett reportedly plays Bridge for close to eight hours a week. To win the game,…

Q: What was the problem that you were grappling with? A: When GoDaddy first started operations in India in 2012, one of the biggest challenges we faced was debunking misconceptions around creating a website. Most small businesses in India, even today, see building a website as a complex and intimidating task, one that requires massive financial investment. Lack of awareness about benefits of having an effective online presence was another barrier for us. Q: Who did you approach and why? A: To help overcome initial challenges, we relied on listening to our customers. We host regular customer forums with customer councils and fireside chats to get feedback on our products and services. We also conduct educational marketing campaigns aimed at creating awareness about ease and affordability of building an online…

Hyatt’s Event Concierge App allows guests to make requests directly through the application; its Group Bill app lists all costs in a single invoice Sheraton Grand Bangalore Hotel at Brigade Gateway receives guest information in an encrypted manner, deletes emails after seven days Toshiba Water Solutions recently delivered modified-to-fit sewage treatment plans at The Oberoi Rajvilas in Jaipur, The Oberoi Udaivilas in Udaipur, and The Trident, Mumbai The Marriot, the Oberoi and the Taj have installed LG’s Hotel TV to provide information on latest offers, and for digital signage Talisma Corp has delivered a customer experience platform to ITC Hotels to handle guest queries The Leela Palace in New Delhi is powered by a 24-hour gas-fired generator set, which utilises the water and steam bi-products in the air-conditioning system…

THE BIG TRADEOFF China dominates bilateral trade. India has a very small share of China’s imports. China, on the other hand, accounts for 13.8% of India’s imports DRAGON BEHIND WIDE TRADE GAP TOP TRADING PARTNER China & Hong Kong together are india’s largest trading partners, followed by the USA KEY ITEMS ARE INVESTORS IN MAJOR INDIAN START-UPS INDIA HAS TIGHTENED NORMS FOR CHINESE FDI Greater scrutiny of companies from China looking to invest directly in India Investors looking to exit from companies will face greater due diligence Companies with existing Chinese investors may find it difficult to raise fresh funds Start-ups like paytm, Bigbasket, with big Chinese holdings, will find it tough to raise funds Throttling investments from China is another blow to start-up funding in India Will impact foreign…

The East Asian currency crisis of the late 90s saw Russia defaulting on its sovereign obligations. A few years later, in 2001, Argentina shook the financial world when it defaulted on its external debt. In 2002, Peru and Uruguay failed to pay off their sovereign obligations. Post the global financial crisis of 2008, Greece’s credit profile weakened, leading to a default. Every crisis has its victims, but common threads in sovereign defaults are high government debt, dependence on foreign capital and low foreign exchange reserves. This time, too, a likely collapse of global economies post the Covid-19 outbreak will have its victims. The alarm bells are already ringing. Global rating agency Fitch has predicted record sovereign defaults in the current year. ₹ 22 Lakh crore Estimated borrowings of Centre and…

Vital statistics often hide more than they reveal. India’s 20 most-leveraged private sector companies, excluding those that have filed for bankruptcy, have a combined debt of ₹15.4 lakh crore — almost half of the government’s budget expenditure planned for FY21. The first five companies in the pecking order — Reliance Industries Ltd (RIL), Vodafone Idea, BhartiAirtel, Larsen& Toubro(L&T) and Tata Steel—account for ₹7.7 lakh crore, according to the latest available numbers for FY19. Even though they do not represent FY20 numbers since most firms are yet to finalise their annual reports, the debt burden of most companies is unlikely to see an erosion, except Reliance Industries, which recently got ₹1.16 lakh crore from foreign investors by selling 24.7 per cent stake in subsidiary Jio Platforms Ltd (JPL). All the other…

Craft beer market in 2014 0.15 Craft beer market in 2019 43 million litres (microbreweries are a small part of this) Beer market in 2018 2.4 billion litres Expected size by 2023 3 billion litres 250-275 Number of microbreweries in India For a lot of people visiting Bengaluru for leisure, the job is pretty cut out: Finding out the most happening brewpub in town for a taste of house specials. And if the brews aren’t interesting enough, hit the next one which, going by the sheer numbers in the city, cannot be far away. Even for a nascent segment such as brewpubs – pubs which have in-house microdistilleries that brew fresh beer and serve it in the premises – you know how well the city has taken to it when…

Difficult times often expose vulnerabilities of life. Coronavirus has made people realise how easily life can be taken away. It has also made them understand the importance of health insurance. We are in a situation where there may be possibility of the entire family requiring medical care. To increase health insurance penetration, the Insurance Regulatory And Development Authority (IRDA) has introduced a number of changes to improve coverage, service quality and claim experience of policyholders. Some have already been implemented. These changes are a good point for you to take stock of your health insurance cover. And if you do not have health insurance, it can be a good time to buy one considering customer-friendly changes IRDA has brought about and the health crisis we are facing. Corona Cover Many…

It is a basic and standard product being offered by all health insurers from June 15 It offers standard hospitalisation, day care, pre- and post-hospitalisation coverage Cover amount only between ₹1 lakh and ₹5 lakh Cumulative bonus facility with up to 5 per cent increase in sum assured for a claim-free year Daily room rent, boarding and nursing expense capped at 2 per cent of sum assured or ₹5,000, whichever is less Mandatory co-payment of 5 per cent for eligible claim amount…

As an intern with Microsoft in California, Archit Gupta, CEO, Cleartax, used to represent Microsoft in the Ultimate Frisbee tournament with Yahoo. “Interesting people, including Yahoo Co-founder David Filo, would come to join the game. When I heard about it, I thought let’s give it a shot, and became a regular player.” Ultimate Frisbee, quite popular in the Bay Area, was considered a game for hippies but has gained global popularity now. Unlike rugby or football, it is a no-contact, seven-on-seven sport, in which men and women play together. A series of coincidences enabled him to continue playing the Ultimate (as the game is popularly called). After returning to India, he started throwing the disc with a close friend who used to play with the Delhi Ultimate team, called ‘Stray…