Reserve Bank of India (RBI) announced a complete overhaul for a resolution of the stressed assets aka Non Performing Assets (NPAs). The RBI has withdrawn existing norms, such as, Corporate Debt Restructuring (CDR) Scheme, Joint Lenders' Forum (JLF), and Strategic Debt Restructuring Scheme (SDR).
The new resolution includes the following key points:
The RBI's new move is definitely a good take. With the withdrawal of old norms and framing new ones in a speedy and effective way for the NPA structure might pose a pressure on banks, but on a broader perspective, the move should be welcomed.
With the election results in Gujarat positively out of the way for the government and Budget 2018, which will be the last full budget of the Modi-government ahead of general elections 2019, major structural reforms will take place for the overall economic growth of the country. Power, Agriculture, and rural initiatives will be a core focus, alongside infrastructure and rural investment in the Union Budget 2018-19. Due to increased investments in agricultural infrastructure, such as, irrigation facilities, warehousing, and cold storage, the agriculture sector is expected to perform better in the next few years. Focus will be more on consumption oriented stocks.
Some of the scrips where a good momentum is expected from the Union Budget 2018-19 are as follows:
The company is engaged in transportation of containers (rail and road), and handling of containers. The company is also engaged in the operation of logistics facilities, including dry ports, container freight stations, and private freight terminals.
Its divisions are EXIM and Domestic. Both EXIM and Domestic divisions of the company are engaged in handling, transportation, and warehousing activities. Its International services include train services, road services, air cargo movements, reefer services, and block booking on round trip basis.
Granules India Limited is a pharmaceutical company with presence across the pharmaceutical manufacturing value chain, including active pharmaceutical ingredients (APIs), pharmaceutical formulation intermediaries (PFIs), and finished dosages (FDs). The company's business operations include three areas: core business, emerging business, and contract research and manufacturing services (CRAMS).
Central Depository Services (India) Limited operates as a securities depository in India. The company offers service for a range of clients, such as, depositary participants and other capital market intermediaries, corporates, capital market intermediaries, insurance companies, and others. The company offers dematerialization for a range of securities, including equity shares, preference shares, mutual fund units, debt instruments, and government securities.
Parag Milk Foods Limited is engaged in manufacturing and processing of milk and milk products. The company offers a range of products, which include cheese, ghee, whey proteins, paneer, curd, yoghurt, milk products, liquid milk, milk-based beverages, and milk powders. The company's brands include:
The company has an aggregate milk processing capacity of approximately two million liters per day. The company has a product basket comprising over 150 stock keeping units (SKUs). Its manufacturing facilities are located in Manchar, Pune and Palamaner, Chittoor.
Apex Frozen Foods Limited is an India-based integrated producer and exporter of shelf stable aquaculture products. The company produces two kinds of shrimps:
The company supplies ready-to-cook products to the food companies, retail chains, restaurants, and club stores. The company distributes the products to the United States, the United Kingdom, and European countries.
Tech Mahindra Limited is engaged in the business of computer programming, consultancy, and related services. The company's segments include Information Technology (IT) Services and Business Processing Outsourcing (BPO). The company operates in various sectors, including telecom business and enterprise solutions business. The telecom business provides consulting-led integrated portfolio services to customers, which are telecom equipment manufacturers, telecom service providers and IT infrastructure services, and BPO, as well as enterprise services (banking, financial services and insurance (BFSI), retail and logistics, and manufacturing, among others) of IT and IT-enabled services delivered through a network of various locations around the world. The enterprise solutions business provides IT services, including IT enabled services, application development and maintenance, consulting and enterprise business solutions, extended engineering solutions, and infrastructure management services.
Sundram Fasteners Limited is a holding company. The company is engaged in manufacturing high tensile fasteners, and motor vehicle parts and accessories. Its product range includes cold extruded parts, powder metal parts, radiator caps, gear shifters, hot forged parts, precision forged differential gears, water pumps, oil pumps, fuel pumps, belt tensioners, rocker arm assemblies, cam followers, bearing housings, hubs and shafts, tappets and other engine components, and valve train parts.
The company's high tensile fasteners product range includes standard fasteners and special fasteners. The company's powder metal parts product range includes bushes, structural parts, and iron powder. The company's radiator caps product range includes metal and nylon cap assemblies for original equipment manufacturers. The company's hot forged products include connecting rods, lug gears for motorcycles, constant-velocity joint parts, fan hubs, bevel gears, and fuel injection pump parts.
The Indian summer monsoon has a major impact on agriculture, and therefore the economy, in India. It is responsible for 80% of the country's annual rainfall. Farmers rely on this seasonal rain to grow essential crops.
The Indian Summer Monsoon is influenced by the El Nino Southern Oscillation (ENSO), which causes extreme weather in different parts of the world, as stated by researchers. The ENSO is mainly caused by fluctuations in sea surface temperature around central to east tropical Pacific Ocean. There are two opposite phases: El Nino and La Nina.
The findings could allow government and policymakers to make more informed decision. The outlook will drastically change for April and May.
Read more at economictimes.indiatimes.com/news/science/researchers-improve-monsoon-forecast-in-india/articleshow/53224797.cms.
Large disposable incomes, still struggling to find the right investments to park excess fund?
Sky high salaries are more a norm than an exception in the emerging Indian economy. Majority of people are unaware that customized products can be built with the guidance of Investment Advisors to meet the specific needs of different people.
Portfolio Management Service (PMS): This Service is offered by brokerages and Mutual Funds that are registered with SEBI, and the person handling the portfolio is Portfolio manager. This is usually offered to individuals or institutional entities with high net worth. The service can be tailored to meet specific investment objectives. The portfolio can be diversified into different financial vehicles like stocks, debt, cash, money market securities, and other index linked products. The Investment Manager takes investment decisions on behalf of the client, which is known as discretionary service.
So how is PMS different from Mutual Fund?
The funds of various investors are NOT pooled into a common fund which is the common practice followed in mutual fund. Each portfolio is managed separately on a case to case basis by the Investment manager. The investor holds his\her stocks in a demat account and the investment manager has the power of attorney to operate it on the client’s behalf.
Investment banks and investment houses focus mainly on institutional investors and High-Net-Worth Individuals (HNI) with Structured products.
Structured Product: A structured product is also known as market linked investment. It is an investment strategy based on a single security or a basket of securities such as options, indices, commodities, debt, or foreign currencies. Some structured products are known as “principal guarantee” securities, which offer protection of principal if held to maturity. This is used as an alternative to direct investments. It invests in derivatives to hedge the systematic risk in the market. It is used by investment houses and investment banks to meet the risk-return objectives, which cannot be met using traditional and standardized financial products available in the market. Some of the simplest structured products include ETFs, convertible bonds, and zero-coupon bonds. HNI investors use the structured products in their portfolio as a way of portfolio diversification.