Monday, December 31, 2018

Fitbit Charge 3, Charge 3 Special Edition With 7-Day Battery Life to Go on Sale in India on Tuesday


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2ApgHOk

You won't be able to use WhatsApp on these devices in 2019

Users of Nokia Series 40 device will no longer be able to create new WhatsApp accounts and some features of the app could stop functioning on the device at any time.

from Tech-Economic Times http://bit.ly/2EYE6cs

Microsoft Surface Go starts shipping in India

Aimed at taking on Apple iPad Pro and Samsung Galaxy Tab S4, the Surface Go is the lightest Surface device yet, weighing just 522g.

from Tech-Economic Times http://bit.ly/2CHsvxe

Poco F1, Redmi Note 5 Pro, Realme C1, Nokia 6.1, Other Phones on Discount During Flipkart Qualcomm Days Sale


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2R3nY0P

Virat Kohli, Kagiso Rabada maintain top spot in ICC Test Player rankings


via Sports News: Cricket News, Latest updates on Tennis, Football, Badminton, WWE Results & more http://bit.ly/2LFhAa0

The uncertain waters that await Shaktikanta Das and RBI in 2019

No one, within or outside RBI, would bet that someday Shaktikanta Das could blurt out, 'My name is Shaktikanta... and I do what I do' -- a snotty sound bite that revives memories of Raghuram Rajan addressing a fawning media. No one, likewise, would imagine Das shutting his doors to senior bankers, or blacklisting journalists who were unkind to men who appointed him as RBI governor -- traits that came to be associated with Urjit Patel.Yet there are trails that connect Das to his predecessors -- the flamboyant Rajan and the reclusive Patel, both hardcore economists, unlike Das.Beginner's Luck Das has had beginner’s luck – quite like Rajan, who, hours after taking charge as RBI governor, had come out with a no-brainer scheme to offer higher returns to NRIs on their bank deposits (a step that immediately arrested the rupee’s fall).In Das's case, his predecessor, Patel, was a bitter, reticent man who had isolated himself from the ministry and market to such a point that all that the new governor had to do was simply smile and talk at the Day 1 press conference -- in which journos banned for two years were also let in -- to reassure bankers and traders caught in an environment of warring and mistrust between North Block and Mint Street. Softening oil price and low inflation also made his job a little easier.A student of history innocent of the Samuelson-Balassa effect on inflation and real exchange rate, or the value-at-risk calculations behind RBI’s 'economic capital’, would probably recall the one-liner: A leader is a dealer in hope. Which is what Das brings to RBI -- a whiff of change that could make the Bank more approachable, even less hawkish, as it opens up the clogged lines of communication to the world. What we don’t know -- and that’s where he could remind us of Patel -- is whether he comes with a specific mandate from New Delhi.Patel, it’s widely perceived, was appointed after he had agreed, perhaps grudgingly, to allow demonetisation. Das, the amicable bureaucrat, will have to work amid the suspicion that he's been given the job to pave the way for scooping out 'extra’ reserves from RBI's balance to GoI's books, which the latter could then use to revive banks and cut debts. In fact, even a large interim dividend (of Rs 30,000 crore or more) from RBI to GoI before the 2019 Budget could turn the spotlight on Das. The Odds & Priorities Das steps in at a point when RBI, after a long time, finds itself in the realm of politics -- on the one hand, with the Opposition attacking the Centre’s every move to rejig and 'raid' a meek central bank, while on the other hand, GoI itself having blamed RBI for the surge in bad loans between 2008 and 2014.So what would Das do? Carving out a trillion or two from RBI’s books would be windfall to GoI but bad optics before the polls. Indeed, how smoothly he handles a large fund transfer could be his acid test. Aggressively talking up the market could make RBI come across as a cheerleader. Turning the heat off on errant banks with shoddy governance record would hurt his credibility as a regulator.Years in bureaucracy have trained Das to list his priorities. He began his innings by announcing large open market operations, where RBI would buy bonds from banks to flush the system with liquidity -- probably with the hope that banks would prune bond losses, be encouraged to lend, while lower bond yields would make it easier for struggling finance companies to roll over their borrowings as they once again battle redemption three months later. 67316827 At his first board meeting, Das gently pushed back GoI’s original agenda to convert RBI into a board-managed central bank by stating that the 'RBI governance’ issue needs “more deliberations”. As any RBI-watcher would agree, Das knows that GoI has partly achieved the objective even before he took oath as governor. By coaxing Patel to allow discussion on some of the operational issues in the last two RBI board meetings before his sudden exit, New Delhi has already asserted the importance of the board.But would he primarily focus on keeping the system on an even keel? Or attempt more serious changes? Nine out of ten people would think he would use his patience and goodwill to perform a balancing act: managing anticipations and avoiding shocks and surprises before the elections while staying below the radar. Those who know Das say even if he is given a mandate, he may not risk his own reputation by rushing it through.As one of the most closely tracked public figures, chances are Das may try to influence changes without rocking the boat. While the media tries to figure out his stand on issues such as the NPA provisioning rules, banking supervision, and promoters of private banks, Das may gently signal a shift in the thinking within the monetary policy committee.His Finest Hour? The new governor may not have answers to the counter-questions from some of the hawkish committee members -- as a non-economist, he may not fully grasp the models and technical presentations placed before the committee, and can't make RBI give up inflation targeting or choose a different index to measure inflation without amending the law. But there’s one thing he knows for sure – that there’s something wrong with the inflation forecasting model, flaws that often made RBI’s inflation predictions go haywire (like the current low inflation which the Bank never quite expected).Das may not be alone, as many within RBI may feel the same. Even as they accept ‘inflation targeting’ as a strategy, they believe there is scope to improve the model. It’s a tool that influences RBI’s decision to cut or hike interest rates and change stance on rates and liquidity. Any move to re-examine it would be one of the biggest news for the financial markets.Patel, as RBI deputy governor under Rajan, had played a key role in shaping the inflation targeting strategy for the monetary policy authority. As Patel’s successor, Das may well feel it’s time to finetune it.Bringing about an overnight change in the monetary policy committee's (MPC) thinking won't be easy. Before anyone else, the new governor would have to first persuade his deputy Viral Acharya -- a well-regarded economist with many published works and with the customary inflexibility attached to such accomplishments. But without getting lost in the maze of inflation targeting maths, the affable bureaucrat may set into play the forces of change with an innocuous suggestion to re-look at the model.As a senior official in the finance ministry in 2016, Das regularly took flak as reporters quizzed him every morning on the travails of demonetisation. As the queues for exchanging old currency notes grew longer, Das, perhaps in a moment of desperation, came out with the farcical suggestion to use indelible ink on the fingers of people who were laundering money by repeatedly joining the queue. Left holding the DeMo baby, he was pilloried then -- and reminded now by the media after being named RBI governor.Perhaps, as a civil servant, he had no choice but to execute the Tughlaqesque plan. But, today, he has choice. The 18th floor of the Mint Street tower, with its history, legacy, and credibility, has the elements that can transform people -- change even those who came to change the institution. Having learnt the tack to survive any regime change, and now armed with the power to create money, change interest rates, and sway the rupee, Das can make the next few years his finest -- beginning with his signature on the legal tender that he was once busy banning.

from Economic Times http://bit.ly/2CHyQZq

thyssenkrupp names Vivek Bhatia as MD, CEO of thyssenkrupp Industries India

NEW DELHI: German industrial giant thyssenkrupp Monday announced the appointment of Vivek Bhatia as the Managing Director and Chief Executive Officer of thyssenkrupp Industries India effective from January 1, 2019.Bhatia was earlier CEO - Asia Pacific at thyssenkrupp AG, driving group activities for all thyssenkrupp companies in the region. Prior to that, he led strategy, markets and development for the Asia Pacific region for the Group and was based in Singapore."I am pleased to welcome Vivek to his new role and thrilled to have his leadership at thyssenkrupp Industries India. Vivek brings unparalleled domain and technical expertise to thyssenkrupp," thyssenkrupp India CEO Ravi Kirpalani said in a statement.Prior to joining thyssenkrupp, Bhatia was with Boston Consulting Group, India. He had also worked for several years as a design engineer for refineries and pipelines at Engineers India Limited.Bhatia holds an MBA from IIM Calcutta, M Tech from IIT Delhi and BE from University of Delhi.thyssenkrupp Industries India, is one of the leading service providers in the fields of sugar plants and machinery, open cast mining and bulk material handling systems, cement plants and machinery and industrial boilers and power plants across the world.

from Economic Times http://bit.ly/2GLiHpG

BHEL bags Rs 3500 cr order from West Bengal

NEW DELHI: Bharat Heavy Electricals Limited (BHEL) said it has bagged a Rs 3500 crore order for setting up a 660 mw supercritical thermal power plant in West Bengal.The order for setting up the Sagardighi Thermal Power Project Extension Unit-5 at Manigram village in Murshidabad district of West Bengal has been placed on BHEL by West Bengal Power Development Corporation (WBPDCL), an official statement said.BHEL’s scope of work in the project includes design, engineering, manufacture, supply, and commissioning of the main plant turnkey package, it said.The key equipment for the project will be manufactured at BHEL’s Trichy, Haridwar, Bhopal, Ranipet, Hyderabad, Jhansi, Thirumayam and Bengaluru plants, while the company's power sector - eastern region division will be responsible for construction and installation activities on site.BHEL is India’s largest manufacturer of power generation equipment with an installed base of over 1,83,000 mw of power plant equipment globally.

from Economic Times http://bit.ly/2BPNFri

Star Trek: Discovery, Unbreakable Kimmy Schmidt, The Punisher, and More on Netflix in January 2019


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2R4wQTJ

Facebook Privacy Debacle Continues as Popular Android Apps Found Sharing Data Without User Permission


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2LN4AiR

Commodity Outlook: How to trade in crude oil, gold, silver and base metals today

Turmeric futures (Apr) may show upside momentum taking support near Rs 6,620 levels.

from Gold News - Economic Times http://bit.ly/2LIezWi

The Best of 2018: Top Indian female athletes of the year


via Sports News: Cricket News, Latest updates on Tennis, Football, Badminton, WWE Results & more http://bit.ly/2VlF8oD

Smriti wins 'Women's Cricketer', 'ODI Player of the year' awards


via Sports News: Cricket News, Latest updates on Tennis, Football, Badminton, WWE Results & more http://bit.ly/2Qa1u92

CBI finds documents establishing 54 million euros payment to Michel

Inching closer towards the Indians who were allegedly paid bribes in Rs 3,700 crore VVIP chopper scam, the CBI has recovered documents which establish payment of at least 54 million (Rs 431 crore according to current rates) of the total 58 million by AgustaWestland to Christian Michel and Guido Haschke for further payments in India.

from Times of India http://bit.ly/2SsrT3X

Anti-Sikh riots case: Sajjan Kumar surrenders

Former Congress leader and a convict in 1984 anti-Sikh riots case, Sajjan Kumar surrendered on Monday in Delhi's Karkardooma Court. On December 17, Kumar was sentenced to life for the "remainder of his natural life" by the Delhi High Court. The high court had on December 21 declined his plea to extend the time of his surrender by a month.

from Times of India http://bit.ly/2AqCt4l

Samsung Galaxy Note 9 Android 9 Pie Update Scheduled for January 15


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2AmwOMS

BSNL Offers Additional Talk Time on Combo STV Recharge Options to Rival Reliance Jio


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2GO5NYe

Huawei Y7 Pro (2019) With 4,000mAh Battery, Waterdrop-Shaped Notch Launched: Price, Specifications


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2s3OY0Y

Realme Says It Will Expand Offline Sales to 150 Indian Cities in 2019


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2AqBDEJ

Chandigarh's first test tube baby months away

For the first time in the city and north of Delhi, a test tube baby will be born using preimplantation genetic diagnosis (PGD) technology.The woman has conceived and is eight weeks pregnant.

from Times of India http://bit.ly/2AmTBb0

Congmen, Akalis in brick-pelting fight

Supporters of SAD and Congress threw bricks at each other in Daun village in Mohali in the only major violent incident during the panchayat elections held in the district on Sunday.

from Times of India http://bit.ly/2s0YRws

Car with six stolen batteries found abandoned

A car loaded with stolen car batteries was found abandoned in Zirakpur on Sunday. According to police, the silver-grey Honda City car bearing Ludhiana registration number was parked in the fields at Baltana in Zirakpur.

from Times of India http://bit.ly/2LLcjOk

Tax evasion: 52 firms on UT radar

The UT excise and taxation department has detected serious anomalies by 52 companies in the probe into the multi-crore tax evasion scam. Earlier, the department had said 286 companies were involved, but a department report has now stated that the 52 companies had committed major anomalies in settling their penalty amount with the help of touts.

from Times of India http://bit.ly/2s3h2Se

3 attack man with sharp-edged weapon, booked

Three persons were booked by cops for attempt to murder of a resident of Chandimandir. The victim was brutally beaten up by the accused. A complaint was given to the cops by Yasin Khan, 62, a daily wager, a resident of village Shyamtu, Chandimandir.

from Times of India http://bit.ly/2LIeC4q

Harmanpreet named ICC World T20 team captain, Smriti and Poonam in T20 and ODI teams

Harmanpreet has been rewarded for spearheading India to the semifinals of the ICC Women's World T20 2018 in the West Indies in November.

from Sports-News-Economic Times http://bit.ly/2Svt9mW

RCom, Jio extend validity of asset sale pact to June 28

NEW DELHI: Reliance Communications and Reliance Jio announced Monday that they have extended the terms of an agreement for sale of wireless assets of the Anil Ambani owned firm.The move comes at a time when Reliance Communication's spectrum sale deal has been hanging fire, pending requisite clearance from the telecom department."Reliance Jio lnfocomm Limited, a subsidiary of Reliance Industries Limited, extended the term of the definitive agreement for the acquisition of specified assets of Reliance Communications Limited and its affiliates to 28th June 2019," Reliance Industries said in a regulatory filing Monday.The acquisition is subject to receipt of requisite approvals from governmental and regulatory authorities, consents from all lenders, release of all encumbrances on the said assets and other conditions, it said.In a separate filing, Reliance Communications said the company and Reliance Jio have "extended the validity of the agreements signed on 28th December 2017 for sale of towers, fiber, MCNs and spectrum of RCOM and its affiliates to 28th June 2019"."The transactions are to be consummated subject to various approvals that are presently in progress," RCom added.Reliance Communications has been urging the telecom department to grant it the "long-awaited no-objection certificate" to comply with a Supreme Court order in "letter and spirit".Senior officials of Reliance Communications and Reliance Jio had also met the telecom secretary this month to discuss outstanding issues raised by Department of Telecom (DoT) over payment related to spectrum sale deal between the two companies.The Anil Ambani-owned company had maintained that it remains committed to discharging any outstanding or disputed amount subject to final adjudication.Reliance Communications had earlier asserted that the requirement of giving bank guarantee as per DoT's demand has been substituted by the orders of telecom tribunal and the Supreme Court, and that its unit Reliance Realty had provided a non-disposal undertaking and corporate guarantee."Hence, compliance with the trading guidelines is met," RCom had asserted in an earlier statement.However, the DoT has, so far, held to its position that the deal cannot be cleared unless there is clarity on payment of dues and associated charges, particularly as the Mukesh Ambani-led Jio has refused to take any payment liability of his younger sibling's firm RCom to conclude the spectrum trading deal between the two firms.

from Economic Times http://bit.ly/2ThNbB6

RCom, Reliance Jio extend validity of asset sale pact to June 28

NEW DELHI: Reliance Communications and Reliance Jio announced Monday that they have extended the terms of an agreement for sale of wireless assets of the Anil Ambani owned firm.The move comes at a time when Reliance Communication's spectrum sale deal has been hanging fire, pending requisite clearance from the telecom department."Reliance Jio lnfocomm Limited, a subsidiary of Reliance Industries Limited, extended the term of the definitive agreement for the acquisition of specified assets of Reliance Communications Limited and its affiliates to 28th June 2019," Reliance Industries said in a regulatory filing Monday.The acquisition is subject to receipt of requisite approvals from governmental and regulatory authorities, consents from all lenders, release of all encumbrances on the said assets and other conditions, it said.In a separate filing, Reliance Communications said the company and Reliance Jio have "extended the validity of the agreements signed on 28th December 2017 for sale of towers, fiber, MCNs and spectrum of RCOM and its affiliates to 28th June 2019"."The transactions are to be consummated subject to various approvals that are presently in progress," RCom added.Reliance Communications has been urging the telecom department to grant it the "long-awaited no-objection certificate" to comply with a Supreme Court order in "letter and spirit".Senior officials of Reliance Communications and Reliance Jio had also met the telecom secretary this month to discuss outstanding issues raised by Department of Telecom (DoT) over payment related to spectrum sale deal between the two companies.The Anil Ambani-owned company had maintained that it remains committed to discharging any outstanding or disputed amount subject to final adjudication.Reliance Communications had earlier asserted that the requirement of giving bank guarantee as per DoT's demand has been substituted by the orders of telecom tribunal and the Supreme Court, and that its unit Reliance Realty had provided a non-disposal undertaking and corporate guarantee."Hence, compliance with the trading guidelines is met," RCom had asserted in an earlier statement.However, the DoT has, so far, held to its position that the deal cannot be cleared unless there is clarity on payment of dues and associated charges, particularly as the Mukesh Ambani-led Jio has refused to take any payment liability of his younger sibling's firm RCom to conclude the spectrum trading deal between the two firms.

from Economic Times http://bit.ly/2ThNbB6

Microsoft Surface Go starts shipping in India

Surface Go, Microsoft's smallest and most affordable Surface device yet, started shipping in India on Monday exclusively through Flipkart at a starting price of Rs 38,599.Aimed at taking on Apple iPad Pro and Samsung Galaxy Tab S4, the Surface Go is the lightest Surface device yet, weighing just 522g.The 10-inch, two-in-one device with 4GB RAM and 64GB internal storage will cost Rs 38,599 while the 8GB RAM and 128GB variant can be purchased for Rs 50,999.Microsoft launched the Surface Go globally earlier this year.The device comes with the Surface Pen -- with 4,096 levels of pressure sensitivity and a 3:2 high-resolution "PixelSense" custom calibrated display.Powered by the 7th Generation Intel Pentium Gold Processor 4415Y and protected by Gorilla Glass 3, the device offers up to nine hours of battery life, according to Microsoft.Surface Go also has several ports for various needs, including Surface Connect for charging and docking, USB-C 3.1 for data, video, and charging, a headphone jack and a MicroSD card reader for storage expansion.For users who require connectivity via video calls, the Surface Go features a 5-MP HD camera and rear auto-focus 8MP HD camera, along with dual microphones.The Microsoft Surface family of devices has registered high double-digit growth in the Indian market this year and the Surface Go is set to add heavily to that next year, according to Priyadarshi Mohapatra, Country General Manager, Consumer & Devices, Microsoft India."In Surface Go, you have latest Windows 10 and a suite of Microsoft apps, for a pure laptop experience on the go. No other tablet or a 2-in-1 can make your work life easier than this device," Mohapatra told IANS at the time of the launch.

from Economic Times http://bit.ly/2CHsvxe

French Startup Offers 'Dark Web' Compass, but Not for Everyone


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2StwBOS

Harmanpreet Kaur named ICC T20I team of the year captain


via Sports News: Cricket News, Latest updates on Tennis, Football, Badminton, WWE Results & more http://bit.ly/2CIzciB

China Probe Readies to Land on Dark Side of the Moon


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2SyC4Ec

Why market volatility is good for your SIP

By Dhirendra KumarWhat is the opposite of fragile? That’s a question Nassim Nicholas Taleb always asks when he is talking about his book, Antifragile. The audience invariably responds with words like ‘strong’ or ‘robust’ or ‘unbreakable’. Then Taleb asks, ‘What is the opposite of positive?’ Almost always, people say, ‘negative’. ‘Why didn’t you say that the opposite of positive is zero? If the opposite of fragile is robust, then the opposite of positive should be zero.’ This needs further explanation.If, as Taleb explains, you are shipping a glass object, you will write ‘handle carefully’ on the package. However, if you are shipping something made of iron, you won’t write anything, because an iron object is strong and robust, and unlikely to break if the package is dropped. That’s not the complete opposite of fragile. If your package contains something that is actually the opposite of fragile, you would write, ‘please mishandle’. If fragile things are considered to be those that are harmed by shock or adversity, then the opposite of fragile should be the things that benefit from shock or adversity.At first glance, this seems absurd. While there are things that can resist shock, there can’t be anything that will actually benefit from it. However, once Taleb starts explaining, and you start thinking about what he is saying, you will realise that there are several things that are the true opposite of fragile.When we skim headlines about equity investing, we get the impression that volatility is the worst thing for investors. In the past few months, the stock markets have been volatile and anchors of business TV channels have had long faces. The headline writers assume that since the equity markets are moving sharply, falling more than they are rising, it’s a bad time for investors. Surely, there must be investors for whom this is true. The crowds of punters, whose success or failure depends on correctly predicting what will happen from one day to the next, must be suffering.However, is there any investment strategy for the ordinary saver that can help bring in the gains of equity investing, even as he gains from volatility? Is there an antifragile investing strategy that you and I can use?Of course, there is. It’s something that smart mutual fund investors are already using. I’m referring to the systematic investment plans (SIPs). An SIP is based on the idea of averaging your investment cost over time. It’s the simplest and, yet, the most effective technique of benefitting from volatility. You invest a fixed amount every month and keep doing it for a long time. When the markets drop, stock prices are low and so are the NAVs of equity mutual funds. Therefore, the sum you invest gets you more units of the fund. Eventually, when you redeem your money, all units fetch an equal amount. However, your gains are higher because of the volatile periods, when you were able to invest at a low price. That’s antifragile—actual benefit from volatility.The SIP gains depend on long-term, gradual rise in equity prices, punctuated with periods of volatility or drop in the markets. It’s an antifragile investing strategy. You make more money precisely because the markets are volatile. If, hypothetically, the equity markets were to rise by a fixed amount every day, there would be no advantage in SIP investing.SIPs are essentially a psychological trick to keep investing regularly, regardless of whether the markets are down or up. It’s the routine that locks investors into an inertia, which turns out to be beneficial for them. The antifragile nature is a hidden advantage that brings real benefit over time.When one look at investing with this fragile-antifragile framework in mind, it’s immediately obvious that short-term trading of equities (or derivatives) is the ultimate in fragility, and long-term SIPs is the ultimate in antifragility.(The writer is CEO, Value Research)

from Economic Times http://bit.ly/2RqSxgi

Bottom-up approach most suitable for 2019: Porinju Veliyath

India still has a huge opportunity for picking the emerging companies, small and midcaps and creating multi-baggers, Porinju Veliyath, Founder & CEO, Equity Intelligence, tells ET Now. Edited excerpts: For a midcap or a smallcap stock-picker, it has been a tough year. Do you think 2019 will not only be a better year but a great year for individual stock pickers? A lot of people now feel that they got trapped in midcaps and smallcaps and it is a time to move to the blue chips, the largecaps. That would be a double mistake. There can be exceptions in both largecaps and mid and smallcaps. 2019 I strongly believe that will be a year for the midcap and small caps because of what happened in 2018. That is the basic reason. The valuations have come to reasonable levels and some of them have come to very attractive levels and that is the main point I would like to make. People have already invested in mid and smallcaps. They have continued to hold it and they are staring at a huge draw down in general. Smart people whose stocks have not gone down are maybe a small exception but in general, average investors in small and midcaps are sitting on a huge draw down. Some people sound very intelligent at this point of time when they say do not buy small and midcaps, buy only the large blue chip, looking at the state of the market. But it can be a wrong advice if given at the wrong time. Now it is a wrong time for that kind of advice. You have to be consistent. If you are a mid and smallcap investor and have been creating wealth in the last many years, five years or ten or twenty years, be consistent. I am telling you India still has a huge opportunity for picking the emerging companies, small and midcaps and creating multi-baggers which may not be the case today with the Nifty and Sensex. The Nifty and Sensex are not as cheap as maybe in 2013 or earlier. But things are not very expensive too, looking at the macro environment we are going through. 67320685 Luckily, in India, recently we are going through a huge reverse trend in macro headwinds. Now crude price and rupee is getting stronger, lot of good things are happening in the economy. Most importantly, people have to watch the reforms done in the past, the major historical reforms. The benefits will start accruing in many aspects. Number one will be tax compliance. Already, we are collecting 16-17% higher tax we are collecting. In the last five years, the tax has almost doubled. This is not a small thing. Our economy is growing at 6-7% and the tax collection is growing at 16-17%. Now I-T department has access to GST data and all BSE-NSE data on a daily basis. I would imagine any kind of non-compliance will be discouraged. I would not be surprised if our tax collection grew at 20% to 25% in last few years. That is very important for the economy.Clearly the time has come to separate the men from the boys when it comes to small and midcaps. I understand that is where your conviction lies . Where are the small and midcaps you are hunting right now? It is a bottom-up approach most suitable for 2019. Of course, bottom-up approach is something very common and is very highly appreciated. In 2019, it has a very special relevance. Instead of getting into a particular segment or industry, it will be better to adopt that approach because there was a huge volatility in 3,000 stocks other than the top 15-20 blue chips in the Nifty. It is an ideal situation for a bottom-up approach. There are companies and we have all seen that only the smallcaps have grown to midcaps and midcaps have grown to largecaps. Now HDFC Bank is a largecap and it is growing at 20% CAGR. It had only Rs 500-crore market cap two decades ago and now it is a Rs 5-6 lakh-crore market-cap company. Every largecap was a smallcap or a midcap at some point of time. Some of them are microcap. Infosys was a microcap in 1993 when I bought the stock first. So, it would be wrong to say do not buy smallcap. Everybody has different ways of investing. Some people invest only in the blue-chip companies. That is also a wonderful way to invest in Indian market and they are making wonderful CAGR, maybe 10-15 CAGR and are very safe. They do not have much volatility. That is also one style of investing. But it is not the only style of investing. There are people who created 25-30% CAGR, 35% CAGR and that has happened not by blue chip investing. For a long period of time, that has happened because of small and midcap investing in the structure of Indian economy. There is a lot of scope for such midcap businesses, medium type of companies to grow big and create 25-30% CAGR and we still have it. But it is not in plenty. When you look back in 2013, we had stories of very attractive valuations in mid and smallcaps. That has come down. You had bet on the likes of HSIL GSFC. You spoke about midcap IT also. Where are you looking for cherry picking next year? I do not want to give any individual names at this point of time. But it is true that I talked about some midcap IT companies. They are transforming into digital business, not just rupee trade or IT services. India has lot of companies managed by very smart people who are waiting for re-inventing that space in midcap IT. There are maybe five-six companies and we also started buying a couple of them in the last five or six months. I do not want to take names. Investors are smart enough to identify such quality names in midcap IT. Another sector, which is totally not fancied and beaten down and which nobody is talking about at this point of time is cement sector. I feel two aspects for this industry. First of all they are beaten down very badly especially the midcap cement companies and they are available at $45-50 per tonne enterprise value. That is really cheap like at 2013 level. Now the GST is at the high bracket of 28%. But there are clear indications that it will be brought down very soon. At the $50-60 dollars per tonne valuation, it looks very safe and cement will be consumed in India, After the demonetisation drive, there was lack of construction activities. It is again picking up and it will go much higher and today replacement cost of cement per tonne the EV is more than $100 and even the blue chip companies in cement are available at $80-90. Some well managed midcap cement companies at $50-60 valuation, will be very safe bet for 2019.In the beginning of 2018, you were bullish on HSIL, Kaya or a Lead Electronics. Can you be confident about any of these stocks for the next two to three years?We continue to hold Kaya and HSIL with a high conviction. At these prices, it looks really good. Kaya is our largest holding. The company has given an indication that they are going for more products. Now their care business has become profitable after a long 14 years. They are going to grow bigger by focussing on the products, product sales and brand. That is not reflecting in today’s valuation of Rs 800-900 crore of market cap and a clean balance sheet company.Marico has a very high quality management and I feel we are very confident and are holding on to the stocks. HSIL also has been beaten down because of some challenge in the earnings in the last couple of years. Again, that is a leader in the segment in some of the niche areas and Hindware, is a big brand nationally with high distribution reach. I feel HSIL at these prices is also very good. We are holding the stocks in portfolio management.The last time I spoke, I was betting on the improvement on corporate management and corporate governance. But many managements continue to remain chor. They find loopholes to siphon off money. There are two factors which drive small and midcap stocks, one is attractive valuations and second is sentiment and liquidity. When do you think the sentiment will change because if sentiment does not change, buyer and liquidity will not make a comeback?When liquidity and sentiment comes back, it will be about selling the stocks and not buying. So you should buy much before that. When liquidity and sentiment is low, you get stocks at say Rs 100 and when liquidity and sentiment is very good on the stock, it will be Rs 300. This is typical in small and midcaps. In 2013, people were not feeling like buying stock. I was extremely bullish on some of those companies at 5 and 6 PEs and I still am. In spite of the big drawdown, many of the stocks I recommended in 2013 are five times, 10 times and KRBL kind of stocks is 20-30 times up. So that is-- you should buy midcap and small caps with a conviction and as a great idea if you believe in that business model and its growth, buy it when the sentiment is low and if the liquidity is low it is an added advantage, you can buy it aaram se there would not be FIIs and all will come and buy it. So for individual investors this is very positive that liquidity is low, sentiment is low.What about your view on the elections and your expectations in terms of high conviction growth areas? You are saying that irrespective of who comes to power, the India growth story remains intact?The elections are going to be very important for investors in 2019. It has to be seen in the light of the huge reforms India witnessed in the last few years starting with demonetisation, the GST, IBC and NCLT. Anybody will agree there were flaws in implementing these reforms. We have got a limitation, India is such a huge, diverse country and economy that it is not an easy task to implement a GST. That is why we took so many decades after thinking of implementing it. Once we have to do it with a lot of imperfections, you cannot keep a perfect system and implement GST, nobody can do it. Anyway, this has to be seen as an attempt by the government to reduce black money, to bring in formal economy, to create a base for a higher growth of economy so that India can reduce its poverty level.

from Economic Times http://bit.ly/2Vjdyss

Fake-Porn Videos Are Being Weaponised to Harass and Humiliate Women


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2GLVVOH

Sony CP-ADRM2 Power Adapter With Quick Charge 4, 4+ Support Unveiled


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2GNWQOA

Samsung Galaxy S9, Galaxy S9+ Facing Battery Drain Issue After Android Pie Update, Some Users Report


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2SvrT3c

iPhone Battery Replacement Programme Ends Today, Last Chance to Get Your Out-of-Warranty iPhone Battery Replaced


via RSS Feeds : RSS Feed - NDTV Gadgets360.com http://bit.ly/2LIWLKE

Virat Kohli: Hammer in hand, World Cup in sight

Yet, it may have been more apt if he had stayed back in Melbourne that one extra day, for that city is home of the Chinese immigrant more than any other in Australia. By the Chinese calendar, 2018 has been the Year of the Dog.

from Sports-News-Economic Times http://bit.ly/2EWMlH5

India retain the Border-Gavaskar Trophy with a win in the third Test against Australia

Kong Kohli spelled out just how important Pujara was in the scheme of things.

from Sports-News-Economic Times http://bit.ly/2TgPy7m

Social media poised for more scrutiny, greater checks in 2019

The year 2018 will go down in history as the one where social networking platforms made country-specific changes and agreed to store user data belonging to Indians within the country.

from Tech-Economic Times http://bit.ly/2QgX00w

Premium mobiles to eye customer attention in 2019, sans e-commerce deep discounts

Deep discounts could become a thing of the past as new rules for online marketplaces with new rules coming into effect in February.

from Tech-Economic Times http://bit.ly/2VkOhOs

Indian IT roped in to rid Facebook of its fake news woes

To fight fake news, Facebook has increased engagement with firms including Genpact and Accenture, sources say.

from Tech-Economic Times http://bit.ly/2R1Naof

Big data - Next year will see a big shift in big tech

The short point is that data protection is not just about Aadhaar.

from Tech-Economic Times http://bit.ly/2SvxTc4

Modi plans cash handout for farmers before poll

By Vrishti Beniwal and Pratik ParijaPrime Minister Narendra Modi is studying three options, including a cash handout for farmers, people with knowledge of the matter said, as his administration seeks to ease an agrarian distress and shore up popular support ahead of next year’s general election.The government is weighing options including a monthly income support program for farmers, a cash handout plan for the shortfall between the actual sale price and state-set procurement rate and a revamped crop insurance program, people familiar with the matter said, asking not to be identified as they aren’t authorized to speak to the media. The final program could be one of these or a combination of all three.The plan for the handout comes soon after the ruling Bharatiya Janata Party was voted out in key state elections this month, forcing Modi to draw up a course correction before federal polls due by May. The government, which has already exceeded the annual budget gap aim, has little room for spending in the current year, having forgone some tax revenue on goods and services following the defeat.The income support program involves a certain amount as monthly payout to farmers and could benefit as many as 150 million farm households, a key bloc that can influence the election outcome.Distress SalesIn July, the government raised support prices of crops such as cotton, soybeans and paddy rice to ensure farmers get at least 50 percent more than the estimated production costs. While that has largely failed to shield farmers from distress sales due to lack of sufficient state procurement, the government now plans to pay cash to farmers if their produce sells at a discount to the government-set rates.Another alternative being considered is a revamp of the crop insurance program. The changes could include a reduction in premium paid by farmers, inclusion of more crops to avail state incentives and bringing tenant farmers under the cover.Finance ministry spokesman D.S. Malik didn’t respond to two calls made to his mobile phone. An agriculture ministry spokeswoman declined to comment.Modi, who is seeking a second term, has to win over farmers before the election. They have been hit by falling crop prices and rising input costs, forcing them to hit the streets seeking debt waivers and protection from distress sales. Add to it, the pressure from opposition Indian National Congress which waived off farm loans after wresting power from the BJP in three states earlier this month.The income support program could help reduce poverty in a country that’s home to a third of the world’s poor and still spends less than 2 percent of its gross domestic product on social security.With the government already exceeding its budgeted annual deficit in October, any sops will need to be balanced with possible reductions in spending to achieve the fiscal gap target of 3.3 percent of gross domestic product.

from Economic Times http://bit.ly/2s2aCCR

How two Delhi youths used dark web to bring in drugs worth lakhs

The crime branch has blown the lid off a drug supply module that ordered consignments from other countries through the dark web and received them in Delhi via international courier firms.

from Times of India http://bit.ly/2SpZVWk

Tesla Names Close Musk Friend Larry Ellison to Board

Tesla named Oracle co-founder Larry Ellison to its board to provide the independent oversight demanded by US regulators after Musk tweeted about taking the electric carmaker private.

from RSS Feeds | TRANSPORTATION - RSS Feed - NDTV Gadgets360.com http://bit.ly/2AmQxf2

Panna labourers who mined diamond turn crorepatis

Two days ahead of New Year, two labourers of Panna district in Madhya Pradesh received a gift turning them into crorepatis. A big diamond mined by the duo of Motilal and Raghuveer Prajapati almost two months ago fetched a price of Rs 2.55 crore in an auction held on Friday.

from Times of India http://bit.ly/2Thuldx

'Harassed' in Dubai, flyer strips on flight to India

Around 150 passengers on board an Air India flight from Dubai to Lucknow were in for a rude shock when a 35-year-old male passenger stripped mid-air and started walking down the aisle. The incident took place on Saturday but was reported on Sunday.

from Times of India http://bit.ly/2EYf9is

Petrol, diesel prices dip further on New Year's eve

Petrol price in Delhi was cut to Rs 68.84 from Rs 69.04 per litre while diesel dipped to Rs 62.86 from Rs 63.09, according to notifications of state-owned oil firms.

from Times of India http://bit.ly/2F17vTk

Pak’s vote on ICJ judgment shot in arm for India

Did Pakistan just score a self-goal in the Kulbhushan Jadhav case? In what may provide India fresh ammunition in the case, Islamabad has at the UN voted in favour of an International Court of Justice (ICJ) judgement which was one of the mainstays of India's submissions before ICJ when it challenged the death sentence and denial of consular access to the alleged Indian spy.

from Times of India http://bit.ly/2EUrCmk

Army foils attack by Pak's Border Action Team

"Army foiled a major BAT attempt to strike a forward post along the Line of Control in Naugam Sector in the early hours of Sunday," an Army spokesman said. He said the intruders attempted to come in by exploiting the thick jungles close to the LoC and were assisted by heavy covering fire of high calibre weapons such as mortars and rocket launchers from the Pakistani posts.

from Times of India http://bit.ly/2BOvv95

Gold Rate Today: Gold trades lower in morning deals, silver up

In days to come MCX gold may trade with upside bias all the way to 31,500-31,700 levels.

from Gold News - Economic Times http://bit.ly/2CGQeO0

Gold inches lower as US-China trade talks boost risk appetite

US gold futures dipped 0.1 per cent to $1,282 per ounce.

from Gold News - Economic Times http://bit.ly/2EXpPwY

Black Mirror: Bandersnatch Game ‘Nohzdyve’ Is Available for Everyone to Play, but There’s a Catch

If you haven’t gotten enough of the new Black Mirror: Bandersnatch interactive film on Netflix, you can now also play one of the games that’s spoken about in the episode, Nohzdyve.

from RSS Feeds | ENTERTAINMENT - RSS Feed - NDTV Gadgets360.com http://bit.ly/2QcrBfF

Aquaman Crosses Suicide Squad as It Nears $750 Million at Global Box Office

Aquaman had a terrific final weekend of 2018 as it hit a worldwide total of $748.8 million, which took it past Justice League, Man of Steel, and Suicide Squad.

from RSS Feeds | ENTERTAINMENT - RSS Feed - NDTV Gadgets360.com http://bit.ly/2EVgqa1

Netflix Stops Offering iTunes Billing for New or Rejoining Subscribers

Netflix has stopped offering the iTunes billing as a payment method to its new or returning subscribers on iOS globally.

from RSS Feeds | ENTERTAINMENT - RSS Feed - NDTV Gadgets360.com http://bit.ly/2F0wF4R

Why Mukesh Ambani could dominate 2019 like never before

First, he spent $36 billion to get you connected and hooked. Then, he invaded your bedroom. Very soon it will be a grab for your wallet. Ambani’s retail plans, online and offline, for 2019 will be defining India Inc strategy next year. Tighter ecommerce rules that will apply on foreign giants from February 2019 will make this strategy more potent.Mukesh Ambani gave us the world’s largest mobile data and all-4G network for free voice calls, and rock bottom internet rates to get drunk on data. We can now talk forever, stream videos, and shop for great bargains, while villagers can avail government schemes and register for benefit payments, download textbooks, access healthcare and education and transfer money riding along the highway of 150,000 miles of hi-tech fibre optic cable that’s enough to circumnavigate Earth six times.In its first year itself, Jio transmitted more data than any carrier ever worldwide, catapulting India to cross the US in the number of apps downloaded from the Google Play store. Monthly data traffic per user has jumped 570% since Jio’s launch in September 2016, according to Morgan Stanley, as 18,000 cities and 20,000 villages got connected to the network.Yet, connectivity is just the first piece of his quadruple play of connectivity, carriage, content and commerce. Together, the 4Cs form the foundation of his career’s most ambitious corporate wager. He even bought two of the largest cable companies, Hathaway and Den Networks, to complement JioGigaFibre and take his telecom architecture indoors to grab 80% of data consumption that typically happens within four walls of people’s apartments. 67315334 This completed Ambani’s carriage plans, allowing him to add services on top, such as bundling optical fibre-based broadband with smart home solutions, or enterprise Cloud offerings for businesses. Go binge.But along with ubiquity, you need great content. So Jio simultaneously started shopping, scooping up media companies, sports franchises, online music and video streaming service startups.With consumers gorging on 240 crore gigabytes of content every month, the Jio juggernaut is steamrolling anything coming its way. But even then, the economics looks dire, as the average revenue per user is now down to sub-$2 a month. Even an ambitious 30% operating margin for a 1 billion-plus market translates to $8 billion gross earnings before interest, tax, depreciation and amortisation (EBITDA). Doubling its revenue market share to a high 40% would only lead to a $3 billion EBITDA pie for Jio, after deploying 12 times more in investments. Mukesh Ambani would need a silver bullet.That’s where retail and financial services come in. Now that Jio has connected the masses — getting 250 million of them and counting firmly in its ecosystem — Ambani will start commerce on his platform to make money and recoup the massive investment, the largest the country has ever seen, to sell fashion and food, electronics and financial services, and even advertising. Once the freebie seduction ends, the high-end broadband connections will also come at a price.Don’t be surprised then, if Jio and Reliance Retail — also the largest organised player in India — blends into one, or dovetails its strategy to create an omni-channel experience by enabling seamless engagement between the online and offline worlds. 67315335 Reliance sees its hybrid commerce platform as one of its biggest engines for growth, pitting it against ecommerce giants like Amazon or retailers like Walmart. By integrating the physical and digital marketplaces, Ambani is dreaming of a ‘Bharat-India Jodo’ enterprise that will provide high-speed cabled internet all over India to connect the 3 crore small merchants and shopkeepers who provide the last-mile physical market connectivity.Ambani, a late re-entrant in the telecom business, has opened up the market to global tech and retailing titans as diverse as Alphabet, Facebook, Netflix and Amazon. Now, he will be their biggest threat. The way he assailed voice telephony — Reliance Jio Infocomm upended the entire telecom sector’s profitability within two years with its brutal price wars. He is now taking the battle straight to Jeff Bezos, the world’s richest individual and founder of Amazon.Consider the opportunity and the eventual prize. Bain & Co says India’s internet penetration is only 28% versus 88% of the US. Its $33 billion ecommerce market has trebled in three years, but it’s still just 3% of the overall retail market. And with GoI’s ecommerce regulations announcement, India’s richest man will have a good start.GoI has said these are not new rules but clarification and tightening of existing rules. Amazon and the Walmart-owned Flipkart Group won’t be able to sell products from companies in which they have an equity interest. These companies are also barred from entering into exclusive agreements with sellers, or from offering deep discounts and cashbacks. Moreover, if a vendor gets a minimum 25% of its purchases from a marketplace, it will be deemed as inventory.Amazon, in any case, is already hamstrung with existing rules disallowing it to hold ecommerce inventory locally. This prevents the retail giant from leveraging its globally renowned logistics prowess. Instead, tightened rules, some of which has been dubbed by experts as anti-consumer, will make Amazon look for other ways to keep the sales clock ticking.Reliance Retail can invest in supply chain and logistics, while fusing a growing online presence in tandem with siblings like Jio. In 2019, this can be the big play for Mukesh Ambani.Cheap data and growing penetration of smarter handsets have opened up a Pandora’s Box for commerce and payments in a country poised to be a $1 trillion digital economy by 2025, as estimated by Mckinsey. Almost at the same time, Ambani has become vocal in the raging debate on data localisation. He clearly states that ‘data colonisation’ is as bad as one India had to suffer prior to 1947. He wants India’s data to be controlled and owned by Indians and Indians alone.Remember, Aadhaar’s database helped Jio mop up a lion’s share of its users within such a short span of time. With GoI tightening rules for global e-tailers, all homegrown players in theory can make a better play for the digital commerce market. Ambani’s big moves, given his scale advantage, can be 2019’s defining corporate play.Jio has become profitable. But the real upside will be only when commerce and payments ride seamlessly on the telecom platform. That’s when investors will get the real bang for their buck. Till then, the price war in telecom will continue to be a race to the bottom. Rivals will keep breaking their backs — or simply fold up like the Tatas, Telenor or Anil Ambani’s Reliance Communications — till Mukesh Ambani corners half the sector’s EBITDA for himself. Growth will also largely be exponential, not linear. So for ‘India’s Verizon’, it only makes sense to become Verizon plus Amazon. The only problem will be a policy change. But such a scenario seems unlikely for the moment.In his last AGM speech, Ambani had said he is determined to ‘connect everyone and everything, everywhere’. His new commerce platform, he added, will ‘promote shared prosperity’. 2019 is the year he will start working on that promise.

from Economic Times http://bit.ly/2ThcKlW

11 moves that could make you rich in 2019

There was a lot of ups and downs in 2018; you won't be wrong in saying that it was one of the most eventful years we have seen in recent times. And as things stand at the end of the year, most asset classes have given below average returns. However, experts believe, things will look brighter in 2019. So, to take advantage of this, here are 11 smart money moves you can make in 2019. These strategies can improve your finances and make your richer in the new year. 1. Use SIPs to benefit from volatility: SIPs can help you ride the heightened volatility in this election year.Stock prices may fluctuate within a narrow band in the run up to the elections, and may later move sharply in either direction depending on the poll outcome. During this period of heightened volatility, it is critical that investors do not stop their SIPs. Sticking with SIPs during lean phases paysContinuing SIPs has rewarded investors after the rebound in market SIP Period CAGR Amount invested Final Value Apr2000-Mar2003 3.6% 3,60,000 3,80,335 Apr2000-Mar2005 36.1% 6,00,000 14,45,806 Jan2011-Dec2013 11.00% 3,60,000 4,24,689 Jan2011-Dec 2015 19.80% 6,00,000 9,81,357 Jan2007-Dec2011 5.5% 6,00,000 6,89,588 Jan2007-Dec2015 16.20% 10,80,000 23,08,384 *Rs 10,000 invested monthly in Franklin India Prima Plus FundIn fact, this market turbulence is likely to help investors benefit from rupee-cost averaging—buying more fund units when they cost less and less units when fund NAVs rise. So, if you stop your SIPs during this period, you are likely to miss the opportunity to accumulate fund units at low cost, and by the time you restart SIPs, the market may already have run up.In Pic: Amol Joshi Founder, Planrupee Investment Services 67298636 “Investors should welcome volatility during the beginning or middle stages of their SIPs.”Staying invested is particularly critical for investors who have started SIPs in the past 12-18 months. “It is during volatile periods that SIPs work best. Investors should actually welcome volatility during the beginning or middle stages of their SIPs,” says Amol Joshi, Founder, PlanRupee Investment Services. As the table shows, historically, investors have gained by continuing SIPs through lean market phases and sticking around for longer terms.Also Read: How debt, equity, real estate and gold investments did in 20182. Consider alternatives to large-cap fundsMost actively managed large-cap funds struggled to beat their benchmark indices last year, and their prospects aren’t bright this year too. “Investors should reset expectations from large-caps,” says Rohit Shah, CEO, Getting You Rich. If you want higher returns and can digest higher volatility, you may opt for actively managed multi-cap funds instead. Large-caps have struggled 67298645 Source: Value Research Data as on 25 Dec 2018These funds are better positioned to deliver alpha due to their flexibility to invest across market-caps. Also, as most multi-caps have a sizeable large-cap exposure, their risk profile is much lower than that of a mid- or small-cap funds. But, invest in them only if your risk appetite permits and stay invested for at least five years.3. Harvest capital gains from equity MFs: Regular churning will keep gains from equity funds below the Rs 1 lakh thresholdThe reintroduction of tax on longterm capital gains from stocks and equity funds has not depressed the small investor’s appetite. After an initial hiccup and some panic selling, markets resumed their upward march. The monthly SIP inflows into mutual funds rose 20% in 2018 as investors realised that the potential gains from equity funds could be higher than the 10% tax on gains beyond Rs 1 lakh. Indeed, the 10% tax will not make a big dent in the overall returns. In fact, small investors with SIPs of Rs 5,000-10,000 may not come under the ambit of the tax immediately.Your SIP gains may soon become taxableStart harvesting gains to avoid them building up to huge levels 67298664 However, bigger investors with monthly investments of Rs 30,000-50,000 could get affected. If you invest Rs 30,000 per month in an equity fund, even 12% annualised returns will lead to taxable capital gains within two years. Therefore, investors should consider harvesting their capital gains regularly to prevent gains from building up. In Pic: Deepti Goel Associate Partner, Alpha Capital 67298678 “Discipline is critical. If the investor redeems but doesn’t reinvest, the purpose is defeated.”Here’s how to go about it. If you started SIPs about a year ago, start redeeming units after they complete a year and reinvest the proceeds in the same or different fund. This will reset the buying price of the units and ensure that your capital gains do not overshoot the Rs 1 lakh tax free threshold anytime soon. Suppose you have an SIP of Rs 25,000 running in an equity fund. If the NAV of the fund in April 2018 was Rs 25, it would have fetched you 1,000 units. When these units complete a year in April 2019, sell the units and reinvest the proceeds. Similarly, keep doing this as and when more SIPs complete one year.4. Switch to save on interest outgoFrom 1 April, all new floating rate retail loans, including housing, auto and personal loans, are set to be benchmarked either to the RBI repo rate, the 91/182 days treasury Bill yield or any other benchmark market interest rate. The banking regulator wants banks to move away from using internal benchmarks to ensure transparency and better responsiveness to interest rate movements in the system. For borrowers, this could eliminate complaints about banks being quick to raise rates, while not displaying the alacrity when it comes to reducing rates in line with RBI policy action. However, they have to be prepared for more frequent rate resets.The most effective way of ensuring that your get a fair deal would be to take advantage of competition among banks to attract new borrowers. Even after the new external benchmarking mechanism is implemented, you can benefit from switching to lenders who are willing to charge a lower rate. However, before you opt for balance transfer, negotiate with your existing lender. If the lender refuses to reduce rates, you can take the call to switch. Be mindful of the balance loan tenure as well. The EMI’s interest component is high in the initial years, and you stand to gain much if you switch in the early years of the loan. The benefits of loan refinancing go down as the tenure progresses.5. Buy December 2019 Nifty call instead of index fund: Sometimes, F&O strategies can yield better returns for investors than even an index fundWe usually don’t recommend futures and options (F&O) strategies to our readers because it is a high-risk segment that encourages speculation and can lead to big losses. If the market does not move as expected, you can potentially lose more than you invest. However, the F&O segment sometimes offers opportunities where the risk is the same as an index fund. For instance, the December 2019 Nifty ‘call option’ with a ‘strike price’ of 5,000 closed at Rs 5,685 on 28 December. This call option gives you the right to buy Nifty at 5,000 on its expiration date of 26 December 2019. You have to pay Rs 10,859, if you want to buy Nifty through an index fund (Nifty closing value as on 28 December). In Pic: Feroze Azeez Deputy CEO , Anand Rathi Wealth Services 67298688 “As 5,000 Dec 2019 Nifty option is below its intrinsic value, buying it is better than buying a Nifty ETF.” However, your actual cost of buying one Nifty through the F&O route is only Rs 10,685 (Rs 5,000 + Rs 5,685). Buying options is for protection and therefore, options usually trade above their ‘intrinsic value’. In this case, it is trading below its intrinsic value of Rs 5,859 (actual Nifty closing price of 10,859 – 5,000) and therefore, worth picking up by long-term investors. “Since 5,000 December 2019 Nifty option is available at below its intrinsic value, it is much better than buying a Nifty ETF,” says Feroze Azeez, Deputy CEO, Anand Rathi Wealth Services. The December 2019 call is trading below its intrinsic value because it is deep in the money and therefore, involves a very high outlay (Rs 5,685 upfront) per Nifty. Second, the lot size of Nifty options is 75; so the initial allocation will be Rs 4.26 lakh. Since most derivative traders use margin funding, they avoid options with high initial investments. The high initial cash allocation, however, should not deter investors. After all, they will have to shell out more if they buy an index fund. Buying 75 Nifty would entail an investment of Rs 8.14 lakh. By buying the call, they get the same exposure at a lower cost. The balance Rs 3.88 lakh can be invested in a debt product or arbitrage fund to earn a modest 7% return. So on a combined basis, you will be able to beat the Nifty by around 5% in 2019 – both in bear and bull market scenarios.Better then index fundRisk-reward in the F&O segment is favourable compared to index fund 67298695 6. Opt for short-term debt funds: Uncertainity on interest rate movement makes long-term debt funds risky.Given the uncertanity on interest rates movement, it is not the right time to opt for long-term funds, say experts. These funds invest in bonds with longer maturities, seeking to benefit from softening interests. Short term debt funds have topped the peformance chartsDespite the recent uptick in long-term debt schemes, they have been trumped by short-term funds. 67298723 Dhawal Dalal, CIO, Fixed Income, Edelweiss Mutual Fund, instead advises booking profits in this space: “Investors should gradually move away from long-term debt funds as they currently don’t offer enough compensation to take on the incremental risk.” In Pic: Dhawal Dalal CIO,Fixed Income, Edelweiss MF 67298735 “Long-term debt funds don’t offer enough compensation to take on the incremental risk.”He suggests opting for short-term funds with maturity profile of up to three years. Avnish Jain, Head, Fixed Income, Canara Robeco Mutual Fund, says investors may also consider corporate bond funds with a strong credit profile. He reckons corporate bonds with 2-5 year duration profile offer better value at this point7. Go for FMPs for stable returns, lower taxDebt funds carry interest rate risk. If rates go up, a debt fund will lose money. If you are not comfortable with this risk, go for fixed maturity plans (FMPs). These funds buy debt securities and hold till maturity so their returns are equal to the prevailing bond yields. Like in the case of debt mutual funds, short-term gains from FMPs are taxed as income. But if held for more than three years, the gains are treated as long-term capital gains and taxed at a lower rate of 20% after indexation. 3-year FMPs on offer 67298751 The indexation benefit is enhanced, if the holding period runs across more than three financial years. Some of the FMPs available right now will mature in 2022-23, so you will get four years indexation, even though the holding period will be just 40-odd months.8. Time to seriously consider NPS: The scheme shed some of its problems and became more attractive in 2018.More than 30% of the respondents to an online survey conducted in November 2017 said they didn’t invest in the NPS because of the tax treatment of the corpus. When they retire, NPS investors have to use 40% of the corpus to buy an annuity and can withdraw the remaining 60% of the corpus. In Pic: Archit Gupta CEO, Cleartax.in 67298773 “Negotiate with your company for the NPS benefit. It can help reduce your tax outgo significantly.” Till now, only 40% of this withdrawn amount was tax free, while the remaining 20% was taxed. In December, the government removed that impediment by making 60% of the corpus tax free at the time of maturity. This is just one of the several negative features that the pension scheme got rid of in 2018. In October, the Pension Fund Regulatory and Development Authority allowed investors to allocate up to 75% to equities in the active choice option. Investors can also remain invested in the scheme till the age of 70 and stagger their withdrawals. Double-digit returns in past five yearsAggressive investors have earned the highest returns in the long term 67298791 Returns as on 26 Dec 2018. These are average returns of the eight pension fund managers. They have been blended as per the asset mix of the portfolio. 3- and 5-year returns are annualised. Source: Value ResearchApart from these changes, the tax benefits offered by NPS make the pension scheme a compelling option for investors in 2019. Under Section 80CCD(2), up to 10% of the basic salary contributed to the NPS on behalf of the employee by the employer is tax free. More tax can be saved by investing up to Rs 50,000 in the NPS under Sec 80CCD(1b). “The time has come for investors to seriously consider the NPS,” says Archit Gupta, CEO of tax filing portal Cleartax.com. His advice to taxpayers: Ask your employer to offer the NPS benefit which can cut tax significantly. What’s more, the NPS fund managers are no longer required to mimic the Nifty and can invest on a larger universe of stocks. This, and the raising of the cap on equity allocation, pit the NPS against ELSS tax-saving mutual funds. What works for the NPS are its ultra low charges. “The expense ratios of NPS funds are 0.01%, which is a fraction of what ELSS funds charge,” points out Sumit Shukla, CEO of HDFC Pension Fund.9. Go slow, but don’t shun US-focused fundsFunds investing in US stocks enjoyed a breezy ride until a few months ago, but their NAVs have fallen sharply over the past three months. This, however, shouldn’t lead investors to shun US-focused funds. “Three months is too short a time horizon to judge any equity fund’s performance,” says Rohit Shah, CEO, Getting You Rich. Lately, US-focused funds have taken a heavy beating Fund 3-Month Return (%) 3-Year Return (%) Franklin India Feeder Franklin US Opportunities -25.28 4.94 Motilal Oswal NASDAQ 100 Exchange Traded -22.09 10.71 Kotak US Equity Standard -21.94 5.28 DSP US Flexible Equity -19.03 8.12 ICICI Prudential US Bluechip Equity -17.79 8.3 Edelweiss US Value Equity Off-shore -17.31 5.78 Reliance US Equity Opportunities -16.17 9.7 Note: 3-year returns are annualised Source: Value Research Data as on 25 Dec 2018These funds invest in strong businesses with high brand equity and robust cash flows and offer healthy diversification to one’s portfolio. Besides, they also stand to gain from depreciation in the rupee over the long run. “Those who expect any expenditure in dollar terms in the medium term— child’s higher studies abroad, a foreign vacation, etc.—should particularly include a US focused fund in their portfolio,” says Vidya Bala, Head Mutual Fund Research, FundisIndia. However, she suggests that investors avoid actively managed funds from this space and stick to an index-based offering like the Motilal Oswal Nasdaq 100 ETF.10. Invest in name of senior citizen parent: Interest up to Rs 50,000 a year is tax free for those above 60.The 2018 Budget had given senior citizens an additional exemption of Rs 50,000 for interest income. If your parents are not in a very high income tax slab, you can gift money to them and get them to invest in small savings schemes or fixed deposits. In Pic: Sudhir Kaushik Co-Founder, Taxspanner.com 67298812 “It is perfectly legal to gift money to a parent to invest. It will not be treated as a sham transaction by the tax authorities.” The cherry on this cake is the higher interest rates offered to senior citizens by almost all banks. Assuming an interest rate of 8%, one can invest up to Rs 6.25 lakh to earn Rs 50,000 tax free from this strategy. Unlike gifts and investments made in the name of a spouse, gifts to parents and investments in their name will not be subject to clubbing. “This is perfectly legal and will not be treated as a sham transaction,” assures Sudhir Kaushik, chartered accountant and Co-founder of the tax filing portal Taxspanner.com. Best senior citizen depositsFive-year deposit rates for those above 60 67298821 Also, there is no gift tax on the money you give to your parents. So make use of their a basic tax exemption limit—Rs 3 lakh for people above 60 and Rs 5 lakh if they are above 80 years of age. In case they are exceeding the exemption limit, help them save taxes by investing in a scheme that is eligible for deduction under Section 80C.11. Opt for multi-year health insurance, cut premiums: These plans offer an upfront discount, if you pay the premium for multiple years in advance.Some New India Assurance customers, particularly in the older age groups, were hit hard as their health insurance premiums were hiked up to 100% in 2017. While this was an extreme case, unlike life insurance, your health insurance premiums rise with age.In Pic: Bhakti Rasal Certified Financial Planner 67298826 “Paying multi-year premiums upfront protects against premium hikes, besides securing you a discount on premium.”However, if you opt for a multi-year health plan, which requires you to pay the premium for several years in one go, you can avoid bearing the brunt of higher premiums over the next few years. The other advantage of multi-year health plans is that they offer discounts of 7-10% on premiums, compared to regular plans. In fact, a 40-year-old can save more than 20% in premium outgo in three years, if he opts for a multi-year health plan (see table) compared to a plan where he has to pay premiums annually.Multi-year health cover is lighter on your pocketA 40-year old male can reduce his 3-year premium outgo by more than 20%. 67298831 Note: Premiums pertain to Religare Health Insurance and include GST at 18%. NA: Not applicable“Multi-year plans are especially useful if you fall in the higher age brackets. A 65-yearold can see a sharp jump in her renewal premium when she turns 66 as the basic premiums are linked to age bands,” says Bhakti Rasal, a certified financial planner. Also, this financial year onwards, you can maximise tax benefits under Section 80D. Until last year, you could claim the tax break only in the year in which the premium was paid. Now, the premiums paid for more than one year will be allowed for deduction proportionately. For example, if your annual premium works out to be Rs 10,000 in 2018-19 and you have paid Rs 18,000 as upfront premium for two years, you will be able to claim a deduction of Rs 9,000 each in 2018-19 and 2019-20.(With Preeti Kulkarni & Sameer Bhardwaj)

from Economic Times http://bit.ly/2GPkfz2

There are only two ways India can sway in '19

2019 could be a story of two contrasting endings. Weighed down by competitive electoral promises, the Indian economy could spiral down along with the rest of the world. Or, it could rise higher, feeding off the energy of a stable new government, structural reforms already underway, and tailwinds of low crude prices.Bill Clinton's campaign strategist James Carville had famously coined the line. 'The economy, stupid', during the 1992 US presidential elections that limited President George HW Bush to one term. It's more popular variant - 'It's the economy, stupid', is going to be with us here in India in 2019 as Prime Minister Narendra Modi seeks a second term. The answer to the question - How did the economy do under the Modi government? - in a way, will decide if 2019 will be a defining year for the economy, or if it will go down in history as the year when populism killed promise.GDP growth, the mother number to gauge the well-being of an economy, averaged 7.35% in the first four years of the Modi government, well ahead of the 6.7% in the preceding five years of the Manmohan Singh led UPA-2 government. Of course, these are reworked GDP numbers that lowered UPA era growth, and the debate will go on endlessly about the veracity of this 'back-series' calculation. But like them or not, these numbers will stay.That being the case, GoI seems to have made a case for its re-election. But then, why does it seem there's such a high level of dissatisfaction? Why do, as some people have asked, we not feel this high growth?The most dissatisfied is the farmer and his even poorer cousin, the landless laborer. Their lot has not improved for years, despite loan waivers and much promise. Because the root cause of low income has remained unaddressed.On the new jobs front, there are no reliable numbers. Nearly 80% falls under the informal economy and survey-based numbers are available only once every five years. Though it can be safely said that GST and demonetisation impacted this sector adversely. Construction, which absorbed hordes of migrant labour from the hinterland, has been hit by the crackdown on black money and GST.The formal economy, going by provident fund (PF) data, seems to have notched up good job numbers. But that could also be partly due to the formalisation of the economy due to GST and the currency swap.So what about white collar workers and salary earners, who decide their well-being on the increments they get every year? In years of double-digit inflation, when the economy grew by double-digit nominal growth rates, increments were also handsome. As inflation has kept low, so have increments - although real increments, after adjusting for inflation, may still be high or on par with earlier levels. This may have caused some heartburn.Are these stakeholders any more dissatisfied than they were earlier? Or could it be simply that the discontent of a few has been magnified because of a social media that was not so pervasive in the last general elections in 2014? How would social schemes like flush toilets, gas connections and electricity temper such dissatisfaction?The crucial question and one that will have a bearing on how 2019 pans out for the economy is how the incumbent government perceives the situation. Does it have confidence in the numbers it has notched up, despite GST and demonetisation, and because of the better-than-usual delivery in areas of reforms, infrastructure and social schemes? Or is it getting distracted by the chatter of dissatisfaction, much of which is not verifiable, one way or the other.If the government reacts with a panic 'populist' response, countered by a bigger counter-promise, India could plumb to economic troubles from which climbing out could be a tough task. 67316829 This government already faces much pressure to announce a nation-wide farm loan waiver. The very expensive idea of universal basic income (UBI), a dole that the government’s Budget cannot afford, seems already under consideration.The impact on government finances could be much worse than the decadal shock of pay commissions when deficits rise, forcing a cut in productive spending. Even public investment could stall, markets tank, deficits rise, and interest rates climb up. The rest we have all seen before. The situation could be even worse, if a messy coalition takes charge in New Delhi in May 2019.The counter narrative of an economic lift off has an equally good chance of playing out - if a stable government, of any hue and colour, emerges after what is likely to be a brutally contested election. For this option to unfold, India will need a government not weighed down by populist electoral commitments.A number of structural reforms already in place – GST, insolvency and bankruptcy code, and ease of doing business are in the process of stabilising in 2019, and transitioning to the next step when their gains begin to flow.The bad loans problem of public sector banks (PSBs) has clearly peaked, and should soon allow for normal credit operations to begin, which in turn will allow funds-deprived sectors to grow again.The looming global slowdown, though a headwind for exports, would also ensure that crude prices, the Achilles' heel of the Indian economy, remain low, helping maintain the macro-economic balance of low inflation, and controlled twin deficits.The consumption story, the strong point of the Indian economy, can then play out freely. The bane of the economy for a while, private investments, which are already showing tentative signs of awakening, could start to contribute to growth. The bonus could be the next set of reforms - labour for one - by the new government that would fire ‘Make in India’ and exports.If this scenario plays out, 2019 could be the year India pulls further away from China in terms of growth, overtakes Britain to become the fifth largest economy, and climbs to an over 8% growth rate. That would, indeed, be a happy ending.

from Economic Times http://bit.ly/2CIxsWx

Highs and lows of aviation sector in 2018

NEW DELHI: Navigating through tail winds and air pockets, the country's aviation space imbibed high passenger growth, battled oil shocks as well as survived mid-air scares in 2018, with the government focused on making flying "as good as possible" in the new year.From spiralling costs and cut-throat competition pushing airlines into the red to government initiatives aimed at boosting the fast-growing sector, a mixed baggage greeted the stakeholders.India remained the world's fastest growing domestic aviation market with 51 straight months of doubled-digit traffic growth but the woes of passengers as well as carriers manifested in myriad forms.While the country's largest airline IndiGo faced brickbats, including from a Parliamentary panel, 25-year-old Jet Airways and national carrier Air India continued to grapple with financial woes."We will try to make air travel as good as possible. We are working on many issues related to that," Civil Aviation Minister Suresh Prabhu said when asked about priorities for next year.Apart from existing initiatives, the Civil Aviation Ministry is to unveil an integrated cargo policy as well as Vision 2040 document for the aviation sector next year.Despite high passenger growth, domestic airlines remained financially vulnerable as surge in oil prices, rupee depreciation and inability to raise fares amid intense competition crimped their earnings. In the three months ended September, all the listed carriers -- IndiGo, Jet Airways and SpiceJet -- were in the red.On the safety front, India retained the highest rating in the audit done by the Federal Aviation Administration (FAA) and improved its score in the audit carried out by UN aviation watchdog ICAO.However, Pratt & Whitney (P&W) engine problems continued with A320 neo planes operated by IndiGo and GoAir, which even resulted in incidents of mid-air engine shutdowns.An incident involving Jet Airways flight where 30-odd passengers suffering nose bleeding due to a sudden drop in cabin pressure also raised safety concerns while a private plane crash at Ghatkopar in Mumbai this year killed five people, including one bystander.Disinvesment-bound helicopter services provider Pawan Hans saw a major accident in its history when the chopper carrying seven persons crashed into the sea off Mumbai coast.Though many new routes and unserved airports came into the aviation map with the ambitious regional connectivity scheme UDAN (Ude Desh ka Aam Naagrik), the trajectory seems bumpy, with at least three carriers -- Air Odisha, Air Deccan and Zoom Air -- suspending services due to their own troubles.After the strategic sale of ailing Air India failed to attract any bidders, the government is charting out new strategies and is continuing with fund infusion. Transfer of non-core debt and assets to a special purpose vehicle, differentiated business strategies for each of the core businesses and roping in professionals for top management positions through global search are among the revival proposals on the anvil.Bogged down by financial problems, Jet Airways continues to face turbulent times and its staff are getting deferred salary payments apart from overall rise in operational costs. The airline, which has significant overseas presence, is looking at various options to raise funds.IndiGo grabbed headlines for bad as well as good episodes. Apart from P&W engine woes, the airline saw the departure of its long standing chief executive Aditya Ghosh in May apparently over differences with one of its promoters.On the flipside, IndiGo became the only carrier to have 200 aircraft in the fleet with the induction of an A320 neo in early December. It also took delivery of A321 neo plane.Becoming the sixth domestic airline to start international operations, GoAir commenced services to Thailand and Maldives. The carrier saw ex-EasyJet executive Cornelis Vrieswijk joining as its chief executive. SpiceJet operated the first bio-fuel-based test flight with a Bombardier Q400 plane from Dehradun to the national capital.Next Generation Airports in Bharat (NABH) Nirman to prepare for one billion passenger trips and DigiYatra that seeks to provide hassle free travel with the option of biometric identification for passengers are among the initiatives being rolled out.In flight wi-fi connectivity would soon be a reality, enabling passengers to use Internet while flying in the Indian airspace and registration for flying drones have commenced.According to Prabhu, domestic and international passenger numbers are forecast to have almost double-digit growth in the coming years. "With such robust growth, India's current aircraft fleet is likely to double over the next few years," he said in a communication.Around 600 aircraft are flying in the Indian skies.The total number of operational airports rose to 100 with the aerodrome at Pakyong in Sikkim.

from Economic Times http://bit.ly/2ViS12V

Surging passenger numbers, policy promises dot turbulent skies in 2018

NEW DELHI: Navigating through tail winds and air pockets, the country's aviation space imbibed high passenger growth, battled oil shocks as well as survived mid-air scares in 2018, with the government focused on making flying "as good as possible" in the new year.From spiralling costs and cut-throat competition pushing airlines into the red to government initiatives aimed at boosting the fast-growing sector, a mixed baggage greeted the stakeholders.India remained the world's fastest growing domestic aviation market with 51 straight months of doubled-digit traffic growth but the woes of passengers as well as carriers manifested in myriad forms.While the country's largest airline IndiGo faced brickbats, including from a Parliamentary panel, 25-year-old Jet Airways and national carrier Air India continued to grapple with financial woes."We will try to make air travel as good as possible. We are working on many issues related to that," Civil Aviation Minister Suresh Prabhu said when asked about priorities for next year.Apart from existing initiatives, the Civil Aviation Ministry is to unveil an integrated cargo policy as well as Vision 2040 document for the aviation sector next year.Despite high passenger growth, domestic airlines remained financially vulnerable as surge in oil prices, rupee depreciation and inability to raise fares amid intense competition crimped their earnings. In the three months ended September, all the listed carriers -- IndiGo, Jet Airways and SpiceJet -- were in the red.On the safety front, India retained the highest rating in the audit done by the Federal Aviation Administration (FAA) and improved its score in the audit carried out by UN aviation watchdog ICAO.However, Pratt & Whitney (P&W) engine problems continued with A320 neo planes operated by IndiGo and GoAir, which even resulted in incidents of mid-air engine shutdowns.An incident involving Jet Airways flight where 30-odd passengers suffering nose bleeding due to a sudden drop in cabin pressure also raised safety concerns while a private plane crash at Ghatkopar in Mumbai this year killed five people, including one bystander.Disinvesment-bound helicopter services provider Pawan Hans saw a major accident in its history when the chopper carrying seven persons crashed into the sea off Mumbai coast.Though many new routes and unserved airports came into the aviation map with the ambitious regional connectivity scheme UDAN (Ude Desh ka Aam Naagrik), the trajectory seems bumpy, with at least three carriers -- Air Odisha, Air Deccan and Zoom Air -- suspending services due to their own troubles.After the strategic sale of ailing Air India failed to attract any bidders, the government is charting out new strategies and is continuing with fund infusion. Transfer of non-core debt and assets to a special purpose vehicle, differentiated business strategies for each of the core businesses and roping in professionals for top management positions through global search are among the revival proposals on the anvil.Bogged down by financial problems, Jet Airways continues to face turbulent times and its staff are getting deferred salary payments apart from overall rise in operational costs. The airline, which has significant overseas presence, is looking at various options to raise funds.IndiGo grabbed headlines for bad as well as good episodes. Apart from P&W engine woes, the airline saw the departure of its long standing chief executive Aditya Ghosh in May apparently over differences with one of its promoters.On the flipside, IndiGo became the only carrier to have 200 aircraft in the fleet with the induction of an A320 neo in early December. It also took delivery of A321 neo plane.Becoming the sixth domestic airline to start international operations, GoAir commenced services to Thailand and Maldives. The carrier saw ex-EasyJet executive Cornelis Vrieswijk joining as its chief executive. SpiceJet operated the first bio-fuel-based test flight with a Bombardier Q400 plane from Dehradun to the national capital.Next Generation Airports in Bharat (NABH) Nirman to prepare for one billion passenger trips and DigiYatra that seeks to provide hassle free travel with the option of biometric identification for passengers are among the initiatives being rolled out.In flight wi-fi connectivity would soon be a reality, enabling passengers to use Internet while flying in the Indian airspace and registration for flying drones have commenced.According to Prabhu, domestic and international passenger numbers are forecast to have almost double-digit growth in the coming years. "With such robust growth, India's current aircraft fleet is likely to double over the next few years," he said in a communication.Around 600 aircraft are flying in the Indian skies.The total number of operational airports rose to 100 with the aerodrome at Pakyong in Sikkim.

from Economic Times http://bit.ly/2ViS12V

Healthcare sector may see further consolidation in 2019

NEW DELHI: Healthcare sector may see further consolidation in 2019 with tightening of regulatory environment set to make it difficult for small players to stay afloat in a highly competitive market.Industry players also expect more partnerships in the new year between public and private sector in the healthcare space, which they feel is 'under-invested'.Already, Malaysia's IHH Healthcare has scalped 31.1 per cent stake in Fortis for Rs 4,000 crore after months of intense competition and is in process of taking another 26 per cent stake. Besides, KKR-backed hospital management firm Radiant Life Care has announced acquisition of a majority stake in Max Healthcare through a merger to create a combined entity valued at Rs 7,242 crore."We have seen many mergers and acquisitions in this field and will probably see the consolidation of health care by a few large players like other fields in business," Manipal Hospital Chairman H Sudarshan Ballal told PTI.Manipal Group, backed by global investment firm TPG, was also a contender for acquiring Fortis.Ballal said demonetisation, GST, tightening of cash transactions and regulatory issues have certainly impacted some of the smaller establishments making them unviable."All in all as I see it, the future healthcare will be a high-volume, low-margin venture, inching towards universal health care with an active role played by the government. It will also be a highly regulated accountable system and people and organisations that do not adapt to this new philosophy will perish," he added.Given these circumstances, consolidation of health care by large chains and closure of some individual-driven smaller facilities is likely to happen, Ballal said.There were five contenders to invest in cash-strapped Fortis: Manipal Group, IHH Healthcare Berhad, Chinese investor Fosun International, Radiant Life, which was backed by global private equity firm KKR, and a consortium of Indian business families – the Munjals of Hero Enterprise and Burmans who own Dabur.The deal between Radiant Life and Max will be carried out through a series of transactions and will see KKR becoming the majority shareholder while Radiant Life Care promoter Abhay Soi will lead the combined company as Chairman. Max Healthcare promoters led by Analjit Singh will step down.The merged entity will operate over 3,200 beds throughout 16 hospitals across India.Wockhardt Hospitals MD Zahabiya Khorakiwala said that in the coming year more meaningful partnerships between public and private sector should be expected to ensure that the near-universal healthcare rolled out in the country becomes a ground reality.Apollo Hospitals Vice Chairperson Preetha Reddy said the country still remains under-invested in health infrastructure."We have a scarcity of doctors and nurses and are vastly under-insured as a nation. Other challenges that remain are access to primary and quality healthcare, changing disease patterns, GST and price regulations on treatments and medical devices - which remain areas of debate and consensus building," she said.In pharmaceutical sector, industry veterans expect a good recovery in the domestic market."We expect a good recovery for the pharma sector in the domestic market. The Indian pharma market growth is likely to be in double digits and we will see introduction of new products consistently," Glenmark Pharmaceuticals Chairman and Managing Director Glenn Saldanha said.The US generic drugs market is expected to remain challenging owing to increasing competitive intensity and price erosion, he added."We expect growth rates of generic drug companies in the US to remain under pressure. However, several leading Indian pharma companies have invested in developing specialty products and we will see some of these products getting commercialised, which may help offset the sluggish growth in generics," Saldanha said.Mumbai-based company is also in process of making a transition into the specialty products segment in the US and will have some of its specialty products in dermatology and respiratory space in the market next year, he added.Another large pharma player in the generics segment, Lupin is looking at complex generics, biosimilars and specialty medicines to be the main drivers of growth going forward.Industry body Organisation of Pharmaceutical Producers of India (OPPI) said it will continue to focus on four critical areas incliding creating a culture of quality and - fostering an ecosystem that rewards innovation, in 2019."OPPI will continue to advocate for policies that accelerate access to new technologies by eliminating regulatory delays and roadblocks standing between patients and new medicines; reduce costs by eliminating taxes and tariffs on life-saving medicines and partner to improve health by identifying public-private partnership opportunities," OPPI President A Vaidheesh said.The segment also witnessed some large ticket acquisitions this year, including Hyderabad-based Aurobindo Pharma buying the dermatology business and three manufacturing units of Sandoz, the generics unit of Swiss drug maker Novartis, for as much as USD 1 billion.Advanced Medical Technology Association (AdvaMed), which represents medical devices segment, said 2019 could be the most defining year for the industry."With healthcare at the forefront of policy making, we are hopeful that this sector will receive its rightful place in the overall healthcare continuum," it said.AdvaMed believes 2019 could be a game changer if the government accepts a scientific approach such as trade margin rationalisation from the first point of sale (sale to distributor) to address inefficiencies in the healthcare delivery system that burdens patients, it added.

from Economic Times http://bit.ly/2QbbZZO

Approach 2019 with value hunting in mind: Dipen Sheth

There is no need to go down the quality curve and while value hunting, be selective, Dipen Sheth, head, institutional research, HDFC Securities, tells ET Now. Edited excerpts: Between heartening surges and heart-stopping plunges, 2018 has been a very volatile year. What do you think the important trends of 2018 will indicate for what could have happen in 2019? 2018 has been a very challenging year for investors if we look at the broader market. The Nifty has gained 3-4% over the year but it has been highly volatile during the year. We have seen a peak of something like a plus 13-14% return from the point we started. We have plunged down to close to 10,000 in September-October. We have had a couple of fundamental events on the political front as well as on the business front with the NBFC crisis spilling over. So after the 29-30% gain over 2017 which I would say was a free ride, maybe this is not such a bad outcome and we need to take solace from that. Again this is only if you look at the headline index which is Nifty. But in the broader market, there has been a veritable carnage. If I am not mistaken, there is a recent study which says that this cue has only gotten worse across 2018 and what was costly has become even costlier on a relative basis as we moved across the year. Maybe finally, we are at a stage where some value hunting is called for. That is perhaps the mindset with which we need to approach 2019. It does not mean that we go down the quality curve. Of course, the argument is that quality is very costly almost everywhere but that may not necessarily be the case. The set-up for 2019 looks to me like a call for hidden quality or turnarounds in cheaper stocks where a performance turnaround can be betted on and where you can make a case for a re-rating. Maybe that is the way to look at markets here. I do not think there is very big money to be made in some of the costlier stocks. While we might have buys on many of them as a broking house, but just look at the numbers -- Lever at about 52X on F20, Titan at 31X, Havells at 39X, Britannia at 51X, Kotak at four times price to adjusted book net of subs despite the recent crack in the stock. I do feel there is a value trade coming up but one needs to be very selective. I completely agree with you that in stock market, you have to buy gold at the price of silver and right now if you are buying some of these quality stocks, you are buying diamond at the price of gold. But we have argued this in 2017, in 2016 and even in 2015.. It is not that I am asking you to go down the quality curve here. All I am saying is there are lots of stories that deserve higher multiples or will soon deserve higher multiples if some investment thesis that brokers like us or researchers like us are betting on, If these events do play out, then there is certainly a case for re-rating. What happens is that when you go through an earnings or a margin expansion, and it is backed by a multiple or a valuation change, then you get the double whammy of a very sweet ride up and that is the way to really make the big alpha in this market. It does not mean that I do not like the great companies going at high valuations. For example, TCS continues to be one of our top picks. We changed our mind late on that one but we said well better late than never and despite the stupendous run that TCS has posted, it is good for another decent run here on. You had said ITC is the cheapest among the FMCGs but could this be the go-to story amongst the Nifty 50 names aside of TCS that you just highlighted? Yes and there are several reasons for this conviction or belief. Frankly, the story has not changed much. ITC is the cheapest stock in the FMCG/CND or consumer nondurables universe. It has been punished for being in a sin industry like cigarettes is par for the course. But it has been punished unfairly, The kind of discount at which it is trading to Lever or Britannia or a Colgate for that matter, is simply uncalled for. We are at something like 40-45%, 50% kind of discount, 50% discount if memory serves me right. Maybe that is a little too much that is one bit. The other bit is that you could give it this discount when it was going through a sluggish phase in the business. Even if not in terms of earnings, then at least in terms of volume growth which is how people look at consumer non-durable companies. Some of that is changing. After a six-year volume de-growth cycle for the last two quarters, we have actually seen volumes coming back in the low to mid single digits at ITC and that should get the pessimists to my side. The tax oppression cycle which was at play, actually drove down the volumes. I guess that cycle is coming to an end now with GST and there is a visible way forward for the next four or five years on how tax will be imposed on ITC. Of course, it is not beyond the capability of any government to get back to tax oppression. But it is a little unlikely. Also, there is non-cigarette business of ITC. ITC has a close to $2-billion FMCG/foods business and we are just at about 2% or so margins there. The critical mass has long been crossed and it is time ITC delivered on that front. The hotels business which has not really done too well in the past is poised for a very strong cyclical turnaround. It is all coming together for ITC right now and at a headline valuation of something like 24X or so on F20 numbers, there is nothing to lose in the stock. As you move into 2019, you encounter global uncertainty. This can be a very good place to hide.In your latest note I see an interesting name, PNV Infratech. What interests you about this story? It is at the other end of the risk-reward spectrum. Infra stocks have been mercilessly beaten down over the last three or four, five months or so. Many of them were of course, trading at unfair multiples of 18 and 20X. We have seen the large names going down to less than half their peak prices. And there is some justification for a derating of multiples in the infra space but remember, this infra cycle in India is unlikely to be broken materially by any government that comes to power, not just this government or a coalition version of this government. One, all the political dispensations in the country have figured out that spending on infrastructure has electoral benefits. Two, companies like PNC Infratech in specific are sitting something like 7X, 8X book to bill ratios. They are not consuming capital like it used to happen in the earlier infra cycles. Some of these companies are very well managed and PNC, KNR of course, comes to mind in this regard, but PNC also falls into a category where capital consumption trails growth and in fact ROCs are maintained and cash flows are relatively cleaner compared to what they were in the last infra cycle. If you take away the value of its infra assets, the stock is available for some 7X or so on FY20 basis on core earnings. The money that it requires to fund its HAM products will really drive its top line because it is the HAM projects which will result into much of the standalone revenues. The Rs 500 crore-odd that it needs to invest into its HAM projects is going to probably get freed up on its balance sheet through strategic sale of its current infra asset portfolio. The visibility, the confidence on execution, the fact that PNC is now moving beyond UP in a big way also and that 8X book to bill execution strength, revenues having reached some kind of a bottom in terms of year-on-year growth in the second quarter, bodes very well for PNC Infratech. The headline risk is if a new political dispensation comes in and there is a little bit of victimisation, the company may go nowhere but that is why I said it is at the end of the spectrum in terms of a risk reward ratio. Our target price for PNC Infratech is as high as Rs 270. Can you just take us through the rationale of this one and would you pick out some of the other names within the sector as a whole?Sometimes, when you have a sector which has got multi-year growth and penetration potential and you have a clearly established sector leader, you do not have to think too hard. Multiples may not look very exciting and I remember the time when Lever used to trade at 40X people were saying how it has delivered all that it could have delivered and here we are at 51X! Voltas is going to go through that phase. Remember that Lever is actually in a highly penetrated category. Much of its product categories -- whether it is personal products or soaps and detergents and so on within the FMCG portfolio are reasonably well penetrated in the country. If you look at air-conditioning market, the room AC market is still in mid to high single digits in this country and obviously it is a discretionary spend for Indian households and offices. It is a spend that is going to become increasingly the norm as we move forward over the next 10 and maybe even 20 years. Some of that will obviously flow through to Voltas as it is the clear category leader and the brand leader. It has got 15,000 touch points and is the best positioned to benefit from the secular trend of Indians aspiring for more comfort in their day-to-day lives whether at home or in the office. It has got very high core return rations of something like 45% ROIC and very clean cash flows, a brand leader, consistently gaining market share well above 20%. The tieup with Beko will again get other categories in the product mix think we are not afraid to assign something like a 35X to its core air-conditioning business to suggest that this should be a permanent part of any long-term portfolio in the country. There are two serious underperformers this year -- Tata Motors and Infosys. Which one will make a comeback? The fundamental strength in the business model is much more visible right now at Infosys as it does not have to grapple with an existential crisis anymore. Both companies have gone through that. Infosys did not suffer as sharp a derating as Tata Motors for the simple reason that it is in a business which does not end up consuming capital and burning cash flows like Tata Motors or specifically the JLR part of the business at Tata Motors. For a long time, JLR was contributing 85-90% to the overall enterprise value for Tata Motors and therefore it was heavily levered to a discretionary consumption play which was being betted on to gain market share consistently in a highly competitive environment. Some of that came apart over a period of time. I do not think Infosys falls into the same category, at all. Core return ratios are well in excess of 30%. The company was cash rich. They went through a management strife but fortunately the business did not implode. The inflows of orders into the company and its execution engine which was Infosys was always famous for did not stutter or stumble and it got through this transition. Now it has got Mr Parekh in charge and the first few bits of news flow and developments that have come in from Infosys are more than encouraging. The stock has actually run up from the time it got derated in the times of its management or board strife. The worst is behind Infosys very clearly. It is actually set for a very good run driven by the fact that the end markets that it services primarily the United States and of course, large swathes of Western Europe. The broader economic prospects for these markets are reasonably positive even today. The transition to digital is happening slowly and steadily. Our finding is that the transition to digital should not be a worry for Indian companies, legacy is not falling off as fast as is feared and Indian companies are picking up digital skills faster than what we or you or I would have thought. All this bodes well for Infosys. It is a very steady play for the longer term. Again, like Voltas, there is no way that you can avoid putting Infosys into a long-term India portfolio at this point of time. As for Tata Motors, unless it gets something right in terms of getting the volumes back at JLR and controlling the margins and that crazy capex spend, that it is sitting on, we are in for trouble and that is exactly what the stock price is telling you.

from Economic Times http://bit.ly/2TjZInI