No plans for Royal Enfield to enter the EV market so soon
Royal Enfield has no plans to enter the electric vehicles market soon, reports The Economic Times quoting Siddhartha Lal, MD of Eicher Motors.
Why it's important: This is because Lal feels there is no scale of economics for the premium two-wheeler market.
But the company has a very long-term plan for EVs.
Royal Enfield set up a team to look into EV market but it is likely that it takes four to five years for a Royal Enfield EV to hit the road.
Real GDP to grow 19-20% in Q1
The Indian economy is set to grow 19-20% in the first quarter this fiscal year, The Economic Times reported, citing its poll of economists.
Why it's important: The is because the Covid's second wave effects are weakened.
It is also due to a strong base effect from a year ago period when it contracted by almost a quarter.
The median estimate was 19.5% for Q1, in a 14.2-23.3% range.
The full-year GDP is likely to grow at 7.9-9.6%.
The RBI's prediction is 21.4% Q1 and 9.5% in the fiscal.
The rebound is seen in most areas of industry, but least in the services sector.
Rising salaries in tech companies concern for global firms
Rising salaries in the technology sector in India are hitting the cost-reduction plans of global companies who want to set shop in India, reports The Economic Times.
Why it's important: Global firms eye India because the country has easy availability of highly skilled workers.
The companies expect at least a 30% cost saving in hiring in India.
High salaries such as ₹50-60 lakh for someone with 10 years’ experience would make the sector uncompetitive from an offshoring perspective.
The pay package is rising due to the shortage of skilled talent in the digital wave.
Securities transaction tax collection hits 70% of Budget target
The securities transaction tax (STT) mop-up has already crossed the 70% mark of the budgetary target of the fiscal, Business Standard reports.
Why it's important: The STT collection is high due to the rising retail participation in the stock markets.
The STT collection target is ₹12,500 crore.
By August 12, it has already got ₹8,800 crores.
Vodafone Idea customer base eroding; lost 12.4 mn subscribers in Q1
The worries of Vodafone Idea is continuing with a loss of around 12.4 million customers in Q1, reports Business Standard.
Why it's important: This loss is the highest since Q4, FY20.
The highest loss was reported in the 2G segment.
The Covid second wave has hit Vi's operational and financial performance very badly.
Q1 was the best-ever since we got listed: LTI
Sanjay Jalona, CEO and MD of LTI (erstwhile L&T Infotech), in an interview with Business Standard, says that Q1 was the best ever since they got listed and the growth was best on a q-o-q basis.
What he says: The good thing about this growth is that it was holistic and across parameters.
"We believe that this is an era of digital restructuring.
I cannot crystal gaze, but for at least the next 7-8 years, there is enough and more in terms of tech services.
We make sure our staff are on a continuous path of learning.
In short, we want to be paranoid all the time, and keep looking for newer things, keep an appetite for risk and for failure.
L&T has been a very supportive parent group for us. Mindtree and LTI are both doing well, and the headroom for growth is also good."
‘Time to reduce weight in mid-, small-cap stocks’
Samir Arora, founder and fund manager, Helios Capital, in an interview with Business Standard, says that it is true that one day this rally will end with a big fall but not at least for a few more years.
What he says: "As of now, there is no strong reason to believe that the generally strong equity markets will not continue to do well for a few more years.
I see the second half as more of a consolidation period at the index level.
A surprise may be a weaker-than-expected recovery if it turns out that the initial demand spurt we have seen or may see for a few months, is more of pent-up demand.
In general, it is time to reduce weight in mid-and small-cap stocks as their valuations are more or less in line with bigger, better companies.
Each company has to be evaluated on its merit.
We are most bullish on all aspects of the financial sector.
Byju’s plans to raise $1.5 bn; eyes $21 bn valuation
Online ed-tech firm Byju’s is planning to raise $1-1.5 billion at a valuation of nearly $21 billion, Mint reports.
Why it's important: The firm is in talks with several investors to raise funds.
The firm is likely to close the fundraising within a month itself.
It is looking at a 27% rise from the $16.5 billion valuations at which the company raised funds in June.
Gold loans default rising; signal household distress
Gold loan defaults are rising while lenders are making the loans available to customers very easily, reports Mint.
Why it's important: The rising gold auction by lenders to recover money shows that the defaults are also rising.
This shows household distress is also going up.
Oil marketing companies depart from the daily pricing of fuel
The oil marketing companies in the country are not adjusting the prices according to the global crude costs for a month, reports Mint.
Why it's important: This is a departure from the policy to align petrol and diesel rates daily.
Critics say this is because Parliament was in session despite international oil prices seeing high volatility.
The price revisions are in the offing as the session has ended.
We are at the lower end of attrition levels: Infy CEO
Infosys CEO Salil Parekh in an interview with The Times of India said that the key element in Infy's growth has been bringing all of Infosys’s capabilities together — what they call ‘One Infosys’.
What he says: "We have in our large deal vocabulary everything above $50 million, and that is what we talk about. We see a good pipeline of that.
We have been fortunate that clients have looked at us to give more and more work.
Compared to the industry, we are at the lower end of attrition levels.
We are working collaboratively with the department, with the association of CAs, and with a group of individual taxpayers, to make sure we create a great new experience."
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