Monday, 6th July ’20
Good Morning. Today marks the beginning of an eventful week and we hope that you can feel the fresh morning vibes already. Last week had a lot going with India-China and US-China tensions soaring. COVID cases continue to plague India which is ranked 138 on the tests per population
Today, we talk about the markets amidst the China tension. Facebook dives into the Indian education market as the Make In India rally continues. We hope The Morning Tea gives you quick insights into the markets, business, and technology. For any suggestions, we’d love to hear from you at team@productround.com. Happy reading!
MARKETS
- Edelweiss posts Q4 loss of Rs. 2281 crores. The financial services company had a net profit of Rs. 243 crores last year in the same period but faced losses this year primarily due to a steep rise in provisions and impairments. The company also announced a decision to raise Rs. 1500 crore of funds through the issue of securities and other debt instruments.
- ASSOCHAM advises focusing on 15 items which are imported the most by India. The industry body listed these 15 items which have more than $5 bn net value per month and recommended that the manufacturing sector should focus their efforts on these products to achieve self-reliance. These items include electronics, coal, iron-steel, non-ferrous metals, and vegetable oils, among others.
- Defence cos. stocks rally amid border dispute with China. The share price of Bharat Dynamics and Bharat Electronics went up by 10% and 6% respectively with volumes splurting for both the stocks. India on July 2 approved the purchase of 33 Russian fighter jets and upgrades to 59 warplanes at a cost of ₹18,148 crores amid rising tensions with China
TECHNOLOGY & INNOVATION
- The United States is planning to roll back its special status to Hong Kong after China ‘s new national security law. This might adversely affect Hong Kong’s startup ecosystem. The US has suspended the US license exceptions for sensitive US technology and blocking the export of defense equipment.
- Facebook is making an education push with India after partnering with the Central Board of Secondary Education(CBSE) to launch a certified curriculum on digital safety and online well being using Augmented Technology. This would help students with current and emerging jobs. Facebook has already partnered with Jio Apps for Digital Udaan, the world’s largest Digital Literacy Program. India is the largest market for FB by user counts.
- Ministry of Electronics and Information Technology has partnered with Niti Aayog for launching an app Atma Nirbhar Bharat Innovation Challenge for Indian startups and entrepreneurs. The challenge will be 2 folds- promotion of existing apps and the development of new apps. The focus is to find and promote the best Indian apps across various categories that have the potential to become world-class.
PRODUCTS & STARTUPS
- Several Silicon Valley startups may shift part of their engineering teams to Canada following the suspension of H-1B. The uncertainty around H-1B and the long path to a permanent residency in the USA is substituted by an inclusive visa and start-up friendly policies that provide a quick and direct path to permanent residency.
- Byju’s has made a $300 million all-cash offer to acquire smaller peer WhiteHat Jr, a week after closing a new funding round from Bond. WhiteHat Jr operates in the K-12 segment, teaching students to code. Byju’s have raised over $400 Million in 2020 alone, with which they aim to fund acquisitions to diversify it’s product portfolio and enter new geographies.
- Softbank has picked up an additional stake in the parent company of PaisaBazaar and PolicyBazaar for $130 million. This gives Softbank over a 15% stake and values the company at $1.5 billion. This comes in after FM Nirmala Sitharam announced a 100% FDI in insurance intermediaries in July 2019. This was capped at 49%
WHAT ELSE IS COOKING
- Rapper Kanye West says he’s running for President: Kanye West, who has been a vocal supporter of Donald Trump, had expressed similar desires to run for President last year. It is not clear though whether the 43-year-old had filed any official paperwork or whether this is just a publicity stunt. West picked up an immediate endorsement from Elon Musk, another celebrity known for eccentric outbursts, who tweeted in reply: “You have my full support!”
- WhatsApp’s “It’s Between You” brand campaign: In a wake to curb the spread of fake news on its platform, the two 60s campaign propounds WhatsApp’s text, video and voice message features showing its understanding of users’ privacy. With a 400 million WhatsApp user base, India is second to Brazil where the campaign runs. The campaign is in collaboration with Film Director Gauri Shinde and BBDO India and is set to run for 10 weeks.
- International Criticism flows in around Israel’s annexation plan: Israeli’s PM formal annexation plan of West Banks and Jewish Settlements in East Jerusalem, after cooperation with the US is internationally condemned. Palestine has warned of dropping all bilateral agreements with Israel as retaliatory measures. The annexation plan scheduled on Wednesday has been on halt due to the US’s intervention.
MORNING TEA BREAK
What’s in store this week
Market Outlook
At the back of a good week for the markets, it can be a slow ride for the Sensex in the upcoming week. You should also lookout for the announcement of key economic indicators this week – such as IIP data, CPI, and WPI inflation. Besides, the progress of monsoon and developments on the COVID front will also be in focus. On the earnings front, TCS is going to announce its financial results on 9th July whereas ABFRL will launch Rs. 995 cr rights issue on 8th July.
International Outlook
We would have to see if Joe Biden announces his running mate for the upcoming US Presidential elections, all the more important after Kanye West recently decided to run for President. After the US Senate passed sanctions against Chinese Officials over Hong Kong, possible tit-for-tat retaliation measures can be expected against the US, UK, and Australia.
MoneyControl’s Top 10 Valuable Brands of India in 2020
According to Brand Finance’s Brand Value Report of 2020, here are the top 10 brands that made it to the most valuable list as per their 2020 brand valuation.
- TATA Group: $20,001million
- LIC: $8,106 million
- Reliance Industries Ltd: $7,927 million
- Infosys: $7,087 million
- State Bank of India: $6,434 million
- HDFC: $5,927 million
- Mahindra Group: $5,735 million
- Indian Oil: $4,970 million
- HCL: $4,889 million
- Airtel: $4,460 million
MORNING TEA CHALLENGES
Going through anxiety or stress? Can’t fall asleep fast? Having negative thoughts around?? Worry not! Try this scientifically verified exercise and you will benefit. Practice the 4-7-8 Breathing Technique, which involves breathing in for 4 seconds, holding the breath for 7 seconds, and then breathing out for 8 seconds. 4 cycles before you go to bed will help you fall asleep in 1 minute! But you can also do it anywhere, anytime! Maintaining a healthy life is not so difficult!
Written by Kumar Sourav Mohanty, Akansh Bhatt, Piyush Vijayan and Shashank Dobhal.