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FRIDAY, 31 AUGUST 2018
22 pages in 1 section www.business-standard.com
MUMBAI (CITY)
~7.00
VOLUME XXIII NUMBER 15

THE MARKETS ON THURSDAY Chg#

Sensex 38,690.1 32.8
Nifty 11,676.8 15.1 BACK PAGE P22 BACK PAGE P22
Nifty Futures* 11,733.2 56.4
Dollar
Euro
~70.7
~82.7
~70.6**
~82.3** SLOW WORK, HEFTY RoW FEE INDIA HAS MOST NUMBER OF
HURDLES FOR DATA REVOLUTION NET SHUTDOWNS IN WORLD
Brent crude ($/bbl)## 77.0## 77.0**
Gold (10 gm)### ~30,145.0 ~80.0
*(Sept.) Premium on Nifty Spot; **Previous close;
# Over previous close; ## At 9 pm IST;
### Market rate exclusive of VAT; Source: IBJA PUBLISHED SIMULTANEOUSLY FROM AHMEDABAD, BENGALURU, BHUBANESWAR, CHANDIGARH, CHENNAI, HYDERABAD, KOCHI, KOLKATA, LUCKNOW, MUMBAI (ALSO PRINTED IN BHOPAL), NEW DELHI AND PUNE

RUPEE FALLS FURTHER

TO 70.74 AGAINST $ I-T asks Walmart Aftersteel,JSW,Tatasinpowerbattle
Sajjan Jindal firm ups offer for Prayagraj a day after Tata Power JV gets LoI

to pay Flipkart
TherupeeonceagainfellonThursday,
promptedbysustaineddollardemandfrom
oilimporters,andpossiblydefence-related ISHITA AYAN DUTT

STEEP FALL
purchases.Apossi- Kolkata, 30 August JSW VS TATAs Prayagraj Power Generation Co
bilityofUSsanctions JSW Energy writes to lead lender, revising offer

tax in a week
(inverted scale) onIndia,ifitbuys Sajjan Jindal's JSW Group is after LoI was issued to Resurgent Power in which
Russianairdefence doing an encore in power Tata Power owns 26%
system,alsoweighed with Prayagraj Power
onthesentiments, Generation Company (PPG- Bhushan Power Mining
saidcurrencydealers. CL) against the Tatas as it has & Steel JSW Steel challenges
Thecurrencyfelltoits done in steel with Bhushan JSW Steel increases auction of iron ore
intra-daylowof Power & Steel. offer by 60% ahead of blocks in Odisha,
70.86adollar,but Estimatespegthetaxvalueat$2billion;govtto A day after Tata Power said final call on bids which affects Tata Steel
closedat70.74,asthe the lenders to PPGCL had
Source: Bloomberg RBIsolddollarsinthe assessliabilitybasedonmultiplesellerdetails issued a letter of intent (LoI) PRAYAGRAJ 3X660MW coal-based Total debt:
markettocoolthe to Resurgent Power Ventures POWER power project in UP ~110 billion
exchangerate.Sofarthisyear,therupee DILASHA SETH Pte for a 75.01 per cent stake,
hasfallen9.7percent,makingittheworst-
performingcurrencyinAsia. 4>
New Delhi, 30 August
THE FINE PRINT JSW Energy wrote to the lead
lender, SBI, revising its offer. the development. per cent is owned by ICICI ~60 billion. JSW's revised

W
ithin days of Walmart
concluding the $16-bil-
ECONOMY P4 lion deal to acquire a 77
Aviation ministry seeks per cent stake in
Flipkart, the income tax department
sops to boost sector has sprung into action to get its due
The aviation sector could soon get a brea- from the transaction. The department
ther, with the Centre mulling reforms that has set September 7 as deadline for
might provide tax relief and allow airlines to the Bentonville-based retail major to
tap foreign lenders. The ministry is in deposit a withholding tax arising out
discussion with the finance ministry to lower
tax rates on jet fuel or ATF, increase adv-
antages under the GST, and allow airlines to
of the mega deal, it is learnt.
Walmart closed the deal to buy a
majority stake in Bengaluru-based
raise working capital loans abroad. ARINDAM
MAJUMDER & ANEESH PHADNIS report
Flipkart last week after getting an
approval from the Competition
Commission of India (CCI). The two
companies had announced the deal
COMPANIES P2
in May.
IndusInd Bank begins hunt Estimates peg Walmart’s tax liabil-
ity from the deal at around $2 billion,
77% Stake in Flipkart that
Walmart has acquired
$16 billion Deal size
$2 billion Estimated
tax liability
| Flipkart's parent entity is
registered in Singapore
| Some investors may escape
tax liability on account of the
India-Singapore tax treaty
| I-T authorities to scrutinise
Walmart's liability after Sept 7
The new offer entails an
upfront payment upwards of
~60 billion, factoring in tax
liabilities and 15 per cent
equity to the lenders. JSW’s
letter was sent Thursday
evening, said sources close to
NDMC eases norms to
spice up Taj auction
AJAY MODI & NIVEDITA MOOKERJI
New Delhi, 30 August
Resurgent Power is a joint
venture based out of
Singapore in which Tata
Power holds a 26 per cent
stake through its wholly
owned Singapore-based sub-
sidiary, while the balance 74
Venture and others. offer, however, is upwards of
Resurgent Power and JSW ~60 billion, besides including
Energy were in the fray for the more equity for the lenders
stressed power asset. The
upfront payment offered by
and factoring in tax concerns.
The latter two parameters had
the two companies was helped the Tata Power JV
understood to be the same at score over JSW. Turn to Page 6 >
ICICI Bank votes
for Kochhar on
ICICI Sec board
JASH KRIPLANI

for Sobti’s successor which is more than 10 per cent of the The New Delhi Municipal Council
Mumbai, 30 August

The search for a successor to Romesh Sobti
at IndusInd Bank will see three internal
candidates — Paul Abraham, the COO;
Sumant Kathpalia, the lender’s head of
consumer banking; and
Suhail Chander, head of
corporate and comm-
ercial banking — vying for
the top job, apart from
outsiders.
RAGHU MOHAN
reports
ECONOMY P6
Remove firms ‘missing’ from
registered offices: Panel
If the office of your firm is not at the regis-
tered address you have given to the
Registrar of Companies, it might soon be
categorised as a shell firm. An expert
committee reviewing the Companies Act has
recommended that those firms which do
not maintain a registered office should be
struck off the RoC. VEENA MANI reports
transaction value. The withholding tax
rate in the case of long-term capital
gains tax is 10 to 20 per cent, depend-
ing on the nature of investment.
The income tax department would
carry out an assessment of the total
liability after the American retailer
deposits the withholding tax. Any
withholding tax is tax deducted at
source (TDS) on interest or dividends
paid to an entity residing outside the
country.
“After Walmart makes the deposit,
we will ask them for details about
where they have deducted tax and
where they have not. Most sellers
(Flipkart investors selling their stake
to Walmart) might claim that they are
exempt under the India-Singapore
double tax avoidance treaty. So,
Walmart will need to assess the lia-
bilities carefully,” said a tax official.
Flipkart’s parent entity is registered in
Singapore and many of the compa-
ny’s investors are foreign entities.
There are around 43 sellers in
question and some of them have filed
withholding tax certificates under
section 197 of the Income Tax Act.
Under Section 197, any NRI selling
shares can give reasons to Indian
authorities as to why they should be
taxed at a lower or nil rate in India.
Turn to Page 6 >
(NDMC) is making a final attempt to The Kishinchand Chellaram College, usually
taketheauctionprocessoftheiconicTaj bustling with students, resembled a heavily-
Mahal, also known as Taj Mansingh, to guarded fort ahead of the annual general
its logical conclusion. Besides bringing meeting (AGM) of ICICI Securities on
down the number of minimum bidders Thursday. Here, shareholders were to decide
to two, from three earlier, the civic body whether Chanda Kochhar should continue to
has decided to lower the minimum net serve on the board of the broking and invest-
worth and average turnover require- TWEAKING RULES ment banking firm.
ments for prospective bidders. Existing provision Revised provision Chairperson of ICICI Securities, Kochhar
“Based on the experience from the 3 — currently on leave amid
last two tenders, need is felt to reduce 4 an on-going probe in the
the minimum number of bids required 2 3.5 2 Videocon loan case —
3 3
for a successful auction. It may be not- gave the AGM a miss
ed that many public auction processes but her position
carried out by various government enti- remained intact.
Minimum Minimum Minimum
ties allow for less than three bids,” an
NDMC document noted. It also cited a
networth average numberof According to the
voting pattern shared
February guidance note of the
requiredbya
bidder (~bn)
turnover
required*(~bn)
biddersfor
tenderprocess on the exchanges,
Department of Investment and Public Note: The mentioned financial criteria are 95.78 per cent of the
Asset Management that allows disin- applicable to standalone entities shareholders’ votes
*Average turnover over a three-year period;
vestment to a strategic partner where bidders can now include turnover of FY18 audited
were in favour of
there is more than one eligible bidder. results as well Kochhar’s reappoint-
Turn to Page 6 > Source: NDMC document ment. Turn to Page 6 >

Kapoor to stay as YES Bank

Kerala reconstruction: State
CEO ‘till further notice’
YES Bank on Thursday said the Reserve Bank
seeks FRBM limit relaxation
of India has allowed Rana
Kapoor to continue as the SHINE JACOB & ARUP ROYCHOUDHURY
MD & CEO of the bank “till NewDelhi,30August
further notice”. The comm-
unication came days before In order to open more fundraising
Kapoor’s current channels for reconstruction and reha-
term ends — on bilitation of its flood-hit areas, Kerala
September 1. is set to approach the central govern-
ment to increase its market borrow-
ings limit from 3 per cent of Gross
Idea-Voda deal gets State Domestic Product (GSDP) to 4.5
approval from NCLT per cent. The state is already in talks
with the World Bank to raise ~100-150
The National Company Law Tribunal (NCLT) billion. This comes at a time when the
has approved the merger of Idea Cellular Centre has declined aid from foreign
and the Indian unit of Vodafone, countries like the United Arab
according to a source. The two companies Emirates, which, according to Chief
signed a merger agreement last year, Minister Pinarayi Vijayan, promised
which could create the country's biggest “~7 billion”.
telecom operator. Approval from the If the Centre agrees to relax the
Tribunal was the only outstanding Fiscal Responsibility and Budget
regulatory requirement. Management (FRBM) rules for Kerala,
HELPING HAND
| The World Bankhas cleared
$55 million forKerala as immediate
relief under its various projects
| A World Bankteam headed
by Acting Country Director
Hisham Abdo had meetings with
the state's chief secretary, Tom Jose
| Kerala is also in talks with other
multilateral organisations like
Asian Development Bank and
International Finance Corporation
its ability to raise money from the to the development. However, senior
markets may increase by around ~115 Union finance ministry officials say
billion. “At present, our FRBM limit is there are strict parameters for relaxing
3 per cent of GSDP, which we are plan- the FRBM limit, and hence the bor-
ning to ask the Centre to increase to rowing and expenditure limits, for a
4.5 per cent,” said a state official close state. Turn to Page 6 >

Car sales may skid on new insurance rules

SHALLY SETH MOHILE exceeding 1,500 cc will be about buyerswillgoup,”saidSugatoSen,
Mumbai,30August ~20,000, up from ~7,900 now for a deputydirectorgeneralattheSociety
one-year period. For motorcycles ofIndianAutomobileManufacturers.
Thenewmotorinsuranceregulations with an engine capacity beyond Under the new regulation, buyers
totakeeffectfromSaturdaywould, 350cc, the buyer will have to pay have an option. Either to choose a
fearofficialsatautomobilecompanies, ~9,000-10,000 for a five-year cover, one-year policy that includes
impelthosewishingtobuycarsortwo- as against ~2,300 currently premium payment for own
wheelerstopostponepurchasing. for a one-year period, say damage (OD) plus three-year
Cardealershavebeenfloodedwith automobile dealers. Economy mandatory third-party (TP)
callsfrombuyerswhohadbookednew Carmakerssaythemove PAGE 4 premium or a comprehensive
vehiclesinthepastfortnight.Thenew willdisruptsalesonly SMALLPLAYERS cover for both OD and TP for
regulationmandatesbuyersofcars temporarily.“Doubtless,there POINTTO three years each. The increase
andtwo-wheelerstopurchaseupfront onnewvehicles,pushinguptheon- willbeshort-termpainfor PROBLEMSIN in premium will be sharper if a
insurancecoverforatleastthreeand roadprices. consumersandforusas MOTOR buyer goes with the second
INSURANCE
fiveyears,respectively.OnAugust20, “Thereisalotofconfusioninthe manufacturers.Consumers measure.
theSupremeCourtdirectedinsurersto market,”saidaMarutiSuzukiIndia willtendtopostponepurchase Therearesomeambiguities,
offerlong-termthird-partycovers. dealer."Thisisbeingdonewithoutany butweexpectthesituationtosettle saidanofficialatacarcompanycited
Insuranceismandatoryforallroad- priorintimation.Customerswho soon,”saidanofficialatonecompany, earlier.Forinstance,itdoesnotclarify
worthyvehiclesinIndiabutowners bookedafewdaysbeforehavebeen decliningtobeidentified. theprovisionifabuyerislookingto
tendtoskiprenewingthepoliciesafter callingtoknowwhatwouldbethe “Therearediscussionsregarding switchhisinsuranceproviderbefore
theselapse.Alongertenureand additionaloutgo." givinginsurancecompaniesabreather threeyears.WhiletheODcanbe
upfrontpaymentofthepremium Depending on the engine size, foramonthorso,”saidanexecutiveat managedbythenewcompany,what
wouldsavebuyersthetroubleof the premium will vary. For instance, anothercarcompany. happenstothelumpsumdepositthe
annualrenewalsbutwould the initial cover for a three-year “Therecouldbesomeimpactinthe buyerhasalreadymade?
proportionatelyraisetheinitialoutgo period on a new private car shortterm,astheinitialoutgofor Turn to Page 6 >
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2 COMPANIES MUMBAI | FRIDAY, 31 AUGUST 2018

STOCKS > ITI

Bagged advance work
> Greaves Cotton
Board approves
> Sun Pharmaceuticals Industries
Top gainer among
> Dena Bank
Govt asks RBI to identify
>SpiceJet
Airlinesharesextendfall
IN THE NEWS order from BSNL of acquisition of majority the S&P BSE Sensex banks that can be onriseincrudeoilprices
~66.34 billion stake in Ampere Vehicles merged: Report
~93.15 PREVIOUS CLOSE ~146.65 PREVIOUS CLOSE ~620.70 PREVIOUS CLOSE ~16.35 PREVIOUS CLOSE ~81.30 PREVIOUS CLOSE
~111.60 CLOSE ~158.10 CLOSE ~639.50 CLOSE ~17.50 CLOSE ~78.25 CLOSE
* OVER PREVIOUS CLOSE 19.80% UP* 7.81% UP* 3.03% UP* 7.03% UP* 3.75% DOWN*
> .

IN BRIEF
SC reserves order on Bhushan Toxic asset buy to hit Tata, Adani finances
Steel ex-promoter’s case DEV CHATTERJEE & KRISHNA KANT FINANCIALRATIOSAT Tata Power is in better financial “The government needs to hold
Mumbai, 30 August THE END OFFY18 position, claim analysts, but is not out the PSBs to a higher standard of pro-
TheSupremeCourtonThursdayreservedits of the woods. Its total debt was ~486 fessionalism. Else taxpayers will con-

T
verdictontheSFIO'spleatostayaDelhiHigh ata Power and Adani Power will
CourtorderinacaseconcerningBhushan have to take additional debt to
Steel’serstwhilepromoterNeerajSingal.A fund the acquisition of new
Totaldebt billion at the end of FY18, up from tinue to subsidise billionaire promot-
Networth (~bn)
~406 billion three years back. ers. The promoters get the upside on
The company’s networth was investments, but taxpayers are unwit-

528.3

benchofJusticeAMKhanwilkarandDY
Chandrachudsaiditwillpassordersontheplea
oftheSeriousFraudInvestigationOffice(SFIO),
1,137.7
978.4
485.9
power assets being auctioned under ~152.6 billion. Thus, the debt-to-equi- tingly underwriting all the financial
the Insolvency and Bankruptcy Code ty ratio was 3.4, according to Capital- risks. Until this situation is resolved by
(IBC). This will put them under finan- ine database. the Reserve Bank of India, promoters

152.6
whileagreeingtoheartheprobeagency'sappealagainstthe cial stress, given their high debt and “Tata Power is in a better financial will continue to excessively rely on
releaseorderonThursday.Singal,whowasarrestedbytheSFIOfor poor profitability. position to absorb additional debt but debt-fuelled binges,” said Buckley.
allegedlysiphoningoff~25millionfunds,gotbailfromtheDelhi Resurgent Power — a joint venture fresh acquisition of coal-fired power But once Mundra is excluded, both

8.8
HighCourtonWednesday.Duringthehearing,thebenchobser- owned by Tata Power and ICICI Bank assets doesn’t make sense for the com- Adani Power and, to a greater degree,
vedthatitmaytransferallsimilarmatterspendinginthehigh — announced on Wednesday that it Tata Adani NTPC pany’s shareholders, given historical- Tata Power get cash.
courttoitselfandmayevenstaytheverdict,butwouldnotliketo has acquired Prayagraj Power, earlier Power Power ly poor returns in the sector,” said G Both have asked the Gujarat gov-
interferewiththereleaseofNeerajSingalfromcustody. PTI< owned by the Jaypee group. But on 3.4 27.1 1.1 Chokkalingam, founder and manag- ernment for a bailout. The govern-
Thursday, JSW Energy sweetened its Debt to equity ratio ing director, Equinomics Research & ment has set up a committee led by
offer for Prayagraj and a final decision Source: Capitaline database Advisory Services. former a Supreme Court judge to find
PHOTO: ADANI GROUP
Cognizant opens Foodpanda to hire will be taken by the lenders.
Adani Power is the highest bidder Mundra 4.0GW import coal-fired Analysts said losses at Mundra
Analysts said these acquisitions
also raise the risk for banks. “Why
a solution.
After the sale of non-core assets,
Texas service 60,000 delivery for GMR’s Chhattisgarh project. power plants are in ongoing financial projects have translated into higher would a bank accept a non-recourse Tata Power’s financial status will
delivery centre riders in 2 months The new acquisitions will aug- distress.” Buckley said he anticipated indebtedness and poor profitability. loan to a subsidiary, particularly one improve. Both groups are wedded to
ment the capacity of the buyers, but more trouble for these firms because Adani Power had debt-to-equity with massive construction and devel- debt-funded growth, Adani more than
Teaneck-basedITmajorCogn- Online food ordering and experts feel it could also be a cause of of doubling of the imported coal ratio of 27.1 (on a consolidated basis) opment risk, without pricing in a high- Tata, said Buckley. With India’s eco-
izanthasannouncedlaunchof delivery platform Foodpanda financial stress. prices since the start of 2016 and at end-March. Outstanding debt was er loan cost to cover the higher default nomic growth set to be at 6-8 per cent
itsregionaltechnologyand India on Thursday said it was Tim Buckley, director, energy recent depreciation in the rupee. ~528 billion, up from ~447 billion risk?” said Buckley. per annum for the coming decade,
servicedeliverycentreinIrving, planning to hire 60,000 finance studies (Australasia, Institute “They can’t even cover their fuel three years back, according to Most of the debts to the thermal energy demand is likely to grow at 5-
Texas,withplanstocreate1,100 delivery riders in the next two for Energy Economics and Financial costs, let alone the depreciation or Capitaline database. power sector that have gone bad were 7 per cent. Electricity production will
jobsby2023.Thenewfacilityis months to ensure seamless Analysis) Sydney, said, “Adani Power interest expense,” he added. The debt was supported by ~8.85- provided by public sector banks grow at 4-6 per cent per annum. By
expectedtoprovideavarietyof delivery experience. The firm and, to a much lesser extent, Tata Tata Power declined to comment. billion shareholder equity at the end (PSBs), including Power Finance 2030, production will be double of
servicesforitsDallas-areaclie- was aiming to increase its Power are both in financial distress. Emails sent to Adani Power did not of FY18. The company has reported Corporation and the Rural Electrif- current output. Coal will play a key if
ntsinvariousindustries,inclu- order volume substantially by Adani Mundra 4.6GW and Tata elicit a response. losses in four of the past five years. ication Corporation. diminishing role.
dinginsurance,healthcare, creating a seamless food ord-
andretail.Cognizanthas ering experience and support-
investedmorethan$8million ing it with robust delivery

Spencer’s in talks with IndusInd Bank begins

onitsexpansioninIrving;the logistics, Foodpanda said. Its
companyalsoqualifiedfora CEO Pranay Jivrajka said: "We
TexasEnterpriseFundgrantof understand that there is a

Amazon for stake sale

$2,105,880.Thefirmemploys
4,100people.Thepositions
createdinthenewfacilityare
full-timejobsforhigh-skilled
technologyandbusiness
professionals. BSREPORTER<
constant need to scale up
logistics to meet the growing
needs of the business and to
address that, we will be hiring
60,000 riders in two months.”
hunt for Sobti successor
PTI<
Company says solidation is happening and
by the end of it, three-four
RAGHU MOHAN
Mumbai, 30 August
to it with the words “… one
bank, has just about sur-

Viacom18’s OTT
platform to
launch VOOT in UK
Twoyearsafteritslaunchin
India,Viacom18'sOTTplatform,
VOOT,willbeenteringintern-
ationalmarketsinthecoming
months.Theglobalexpansion
willstartwiththeUnited
Kingdom,wherethevideo
streamingplatformhopesto
capturethetwo-million-
diasporamarket.VOOTwillbe
presentintheUKthroughan
exclusivepartnershipwith
telecommajorVirginfrom
Novemberthisyear.Itwilllater
beavailableontheAppleapp
storeandtheplaystoreon
Android. BSREPORTER<
Essel Group to
launch cruise liner
in November
SubhashChandra’sEsselGroup
willbelaunchingitsfirstcruise
linernamedJaleshinNovem-
ber.Withthis,thegroupwill
enterthecruisetourismbusi-
ness.Thisisthelatestventure
bythegroup,whichpromotes
ZeeEntertainmentEnterprises
Limited(ZEEL).Accordingto
industryestimates,around
200,000peopletookcruisesin
2017inIndia.Currently,the
IndianOceanregionhas29
shipsdeployedandaccounts
for1.2percentoftheglobal
cruiselinermarket.
BSREPORTER<
Oyo enters leisure
segment with
Palette Resorts
Hotels chain Oyo has said it has
forayed into the leisure
category with its new brand
Palette Resorts. The hotels
chain is currently partnering
with select resorts that offer
amenities including rooms,
private villas and beaches,
gourmet dining, spa and other
recreational provisions, a
release said. “With Palette by
Oyo, we are expanding our
playfield to upscale resorts,
while remaining committed to
our core value proposition -
location, quality, and price.
These are hand-picked,
premium accommodations,"
its chief of strategy,
Maninder Gulati said. PTI<
CCI waives
penalty on
Panasonic
TheCompetitionCommission
ofIndia(CCI)haswaivedpen-
altyonPanasonicEnergyIndia
byinvokingprovisionsoflesser
penaltyregulations.However,
itimposed~96.4millionon
GeepIndustriesinacase
relatedtocollusioninfixing
pricesofzinc-carbondrycell
batteriesinIndia.Hadlesser
penaltyprovisionswerenot
invoked,Panasonicwould
havetopay~739.3millionas
penalty. BSREPORTER<
considering more
than one entity
to offload
minority stake
AVISHEK RAKSHIT &
ISHITA AYAN DUTT
Kolkata, 30 August
RP-Sanjiv Goenka’s food and
grocery retail chain, Spencer’s
Retail, is in talks with multiple
players, including Amazon, for
offloading a minority stake.
Sources said talks were at pre-
liminary stage and discussions
were being held with more than
one entity. It was understood
that Amazon was one of players
that Spencer’s was in talks with.
Asked whether Amazon is
looking at a minority stake in
Spencer’s, Shashwat Goenka,
sector head of Spencer’s
Retail, said, “We keep explor-
ing multiple things but I can-
not comment on anything
unless it materialises. We are
open to opportunity and at
any given time we are explor-
ing two to three opportuni-
ties.” Amazon, however,
declined to comment.
As part of the demerger
plan of its parent firm, CESC,
Spencer’s is expected to be sep-
arated from the mother com-
pany and this is when it will
have to arrange for its own
funds to keep its hold in the
retail space. In 2017-18, the firm
posted a pre-tax loss of ~0.30
billion as against the pre-tax
loss of ~1.29 billion in 2016-17. Its
revenue, however, had showed
marginal improvement by 3.46
“A large level of
consolidation is
happening and by the
end of it, three-four
players hopefully should
be left and that will be
a combination of Indian
and international
players”
SHASHWAT GOENKA,
Sector head of Spencer’s Retail
losses, Goenka, on the other
hand, is not keen to opt for the
private equity (PE) route. “We
have been clear that no signifi-
cant PE funding is what we will
be looking at. But other things
we will look into. We are open to
all of it but PE is not my prefer-
ence for Spencer’s,” he said.
Moreover, Spencer’s is on
an expansion mode and plans
to open 20 more stores this
year, thereby, pulling up the
total store count to 148.
Goenka doesn’t want this
expansion to be “reckless” and
would come up with stores that
would be profitable in the first
few months of operation and
be continuously profitable.
However, Goenka is flexible
with his profitability clause for
the stores in case Spencer's is
able to narrow down upon
properties, which may have a
long-term gain.
players hopefully should be
left and that will be a combi-
nation of Indian and interna-
tional players. I think that will
be great because then each of
us will stand for something to
the consumer.”
Amid this changing sce-
nario, Spencer’s wants itself to
be known as an “aspirational
player” rather than a steep dis-
counter. The only concern he
has is over a level-playing field
in the era of consolidation and
wondered if it would be bene-
ficial for the retail sector to
have a unified and one policy
both for e-commerce as well as
bricks-and-mortar model.
According to Goenka, a lot
more companies would be
investing in India, like retailers
from the US, Japan, and Aus-
tralia. Also, investment would
be made at the back-end, too.
“We are not growing a business
to sell out to some. We are in
this for the long run,” he said.
To improve customer expe-
rience in its stores, Spencer's is
piloting a cashless and inter-
action-free checkout, where
the customer scans products
on their phone and exits the
store by paying on the app — a
concept similar to Amazon Go.
“Wearepilotingitnow.Now,
we have implemented this only
for a few of our employees.
There are a few tech things we
need to fix. If the pilot goes well,
we’ll probably do a launch for a
few select customers before it
can be rolled out,” he said.
Globally, the concept is at a
nascent stage and there are just
two such Amazon Go stores in
the US. According to reports, a
The search for a successor to
Romesh Sobti at IndusInd
Bank will see three internal
candidates vying for the top
job apart from outsiders.
The three IndusInd hands
who are said to be in the fray to
gain control of the corner-
room are Paul Abraham, the
current the chief operating
officer, Sumant Kathpalia, the
lender’s head of consumer
banking, and Suhail Chander,
head of corporate and com-
mercial banking. The bank’s
board will also look outside the
internal pool for filling the
position.
If all goes according to plan,
a successor will be announced
“sometime in the middle of
next year”, said a source.
Sobti’s term as managing
director (MD) and chief exec-
utive officer (CEO) comes to
an end in March 2020, when
he turns 70.
According to extant regu-
lation, one has to step down
on reaching that age.
The upcoming succession
throws up myriad challenges,
as unlike other private banks,
the dynamics of the core team
in IndusInd Bank is unique.
The three internal candi-
Fortis CFO Gagandeep Singh Bedi quits
Fortis Healthcare on Thursday
said its Chief Financial Officer
Gagandeep Singh Bedi has
resigned. In a stock exchange
notification, Fortis said Bedi
Romesh Sobti’s term as MD
and CEO comes to an end
in March 2020
dates, as the rest of the 15-
strong core team barring two,
are from ABN AMRO Bank.
The three walked in when the
Hindujas dialed Sobti in 2007
to take charge. Sobti had put
forward a case that his senior
colleagues at the foreign bank,
too, would come on board.
The promoters were more
than willing to oblige, as the
bank had been largely adrift
since its inception in 1993
under three bosses —
Soloman Raj, K R Mahesh-
wari, and Bhaskar Ghose.
Even two years after Sobti
took over, a Reserve Bank of
India draft paper on new bank
licence in October 2009 allud-
ed to IndusInd’s status with-
out making a direct reference
pany executive to leave the
organisation after stake sale to
Malaysia-based IHH Health-
care. In July, Fortis board
approved ~40 billion-offer
vived”.
No other bank in the coun-
try has almost its entire top
brass so closely associated
with its helmsman through-
out the larger part of their
careers; and it is not certain if
the team will hold together in
case one among them was to
step into Sobti’s shoes. It is a
concern, which was flagged in
2014 by analysts when his
tenure was extended by a year.
He was to turn 65 (in 2015),
which was the retirement age
then for the heads of private
banks. A year’s extension was
given as then in-the-works P J
Nayak Committee on gover-
nance in banks had initially
deliberated on 65 as the age
limit for bank CEOs. It was lat-
er decided to go by the
Companies Act and the limit
was extended to 70.
Will the team hold togeth-
er? The answer to the question
may be blowing in the wind,
as speculation is rife that both
Sobti and his counterpart at
HDFC Bank’s Aditya Puri may
become chairman of their
banks at some stage. In the
past, both Narayan Vaghul and
K V Kamath had taken up such
role at ICICI Bank after their
stints in the CEO’s room.
der criticism for lapses in res-
pect of loans granted to enti-
ties, controlled by former pro-
moters. The management,
however, denied the charges.

GoAir plans code-shares per cent at ~20.91 billion for the

year ended March 31, backed
While discussions are on
with potential investors, Goe-
clutch of start-ups are experi-
menting with the idea in the
resigned citing personal rea-
sons and the board had appro-
from IHH for 31 per cent stake
in the company and the pro-
Bedi joined Fortis in 2011
from Philips Healthcare, The

on international routes by expansion. In this financial

year, Spencer’s will register its
first PBT (profit before tax).
ANEESH PHADNIS With years of accumulated
Mumbai, 30 August
nka also batted for consolida-
tion. “Whenever consolidation
happens, it helps the industry
grow. Now, a large level of con-
US and Microsoft is believed to
have shown a sample technol-
ogy to Walmart. In India, My-
ved his resignation on Thurs-
day. He will remain in service
till September 30.
posal received shareholders’
nod this month.
In June, senior manage-
Netherlands, and set up sup-
ply chain and shared services
function.
ntra has already done it. Bedi is the first senior com- ment of Fortis had come un- BS REPORTER

GoAir will enter into code-

share agreements with foreign
airlines for its overseas routes,
its Chief Executive Officer
(CEO) Cornelis Vrieswijk said
on Thursday.
The Wadia group-owned
airline has announced its mai-
den international flights to
Phuket and Male from Mum-
bai and Delhi from October.
Plans are underway to con-
nect Bengaluru with these two
destinations. “We are looking
at code shares to get passen-
ger feed from foreign airlines
on our international routes,”
he said. Currently, GoAir has
36 Airbus A320 planes in its
fleet, including 19 A320Neos.
It will induct 13 A320Neo
planes by December end.
The firm’s network expan-
sion has been affected because
of the ongoing technical prob-
lem with its engines. Accor-
ding to a Bloomberg report, the
latest issue, which is affecting
them is excessive vibration.
Manufacturer Pratt & Whitney
(PW) is probing the compla-
ints. Two of GoAir's 19 A320-
Cornelis Vrieswijk, CEO,
GoAir PHOTO: KAMLESH PEDNEKAR
Neo planes are grounded as it
awaits replacement engines.
Vrieswijk said the airline
was in discussions with Airbus
and PW for compensation.
The airline has 144 A320Neos
on order and has selected PW
engines for 72 planes. He said
the airline was studying the
performance of both PW and
CFM engines and was not in
hurry to finalise engine order
for the remainder order book.
“Oil and currency are hurt-
ing business significantly and
costs have gone up. We are
looking to optimise network
and improve crew utilisation,”
the CEO said.
Chasing the next wave of e-customers
E-commerce players and retailers become shopping assistants for Indians beyond cities
KARAN CHOUDHURY
New Delhi, 30 August
Knowing that the real money in e-commerce
would only come after they go beyond the
100 million English-speaking and internet
surfing population, infotech giant Google
and major retailers such as Amazon, Flipkart
and Walmart are using some of their
resources to reach out to tier-III cities and
other smaller places in India.
Between them, these companies have put
at least 200,000 people on the ground to
help people in rural areas with bad connec-
tivity to shop online. The goal is to teach as
many as 200 million people to come online
and become new customers over the next
three to four years.
Amazon India was one of the first movers
in this space, starting a ‘Project Udaan’, since
renamed Amazon Easy. This was to train peo-
ple about ways to buy and sell online, from
2015. “As the programme scales and strength-
ens, we will look to add many more services
under Amazon Easy. It will play a significant
role in enabling the next 100 million cus-
tomers in India to enjoy shopping on Ama-
zon.in, starting with the coming festive sea-
son,” said Kishore Thota, director, customer
experience & marketing at Amazon India.
Starting with 200-plus stores across
Andhra and Telangana, Amazon Easy will be
rolled out nationally across thousands of
existing stores over the next few months. The
company is targeting 14,000-plus stores
across 21 states with large network partners
like Storeking and Vakrangee to smaller ones
like Linq and Indiabuys, beside individual
shop owners.
“We equip these offline stores with training
material that includes skills like searching,
browsing and navigation on Amazon.in, help-
ing customers set up Amazon accounts,
checkouts, payments, answering status and
delivery queries, and refunds and returns if
required. Amazon Easy is not only helping
more people join the digital eco-system but
also opening up self-employment and other
job opportunities for semi-skilled and partial-
ly-skilled people,” said Thota.
US retail giant Walmart, which runs major
business-to-business (B2B) operations in this
country, also uses teams of salespeople on the
ground for this. They are meant to go to areas
near their B2B retail outlets, to help small and
traditional store owners order and replenish
their inventory. Salespersons go out with
computer tablets and take down the orders.
This has helped the firm add new sets of cus-
tomers. Sources said Walmart might now
train Flipkart (which it has acquired) as well,
to reach out to new sets of online buyers.
Gearing up for an India e-commerce
launch, Google has taken steps to understand
the universe it wants to get into. For instance,
it has been associated with some 2,000 work-
shops, helping Google to identify sellers.
It has prepared a rural plan as well, mainly
through an ‘Internet Saathi’ initiative. Thro-
ugh 48,000 such Saathis across rural parts, Go-
ogle says it wants to offer assisted shopping till
people in such areas are comfortable with the
process. Training of Saathis has begun for this,
equipped with a laptop and a data modem.
The programme focuses on training
women in rural India to explore various uses of
the internet. These women were to then
impart training to the larger rural community,
in their own and neighbouring villages. The
programme was launched in partnership with
Tata Trusts. The company says at least 15 mil-
lion women have already benefited and it is
active across 140,000 villages.
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official

.
MUMBAI | FRIDAY, 31 AUGUST 2018 COMPANIES 3 <

Enterprise security costs rise Prasad skips

Facebook
as firms face skill shortage office during
4-day trip to
Informationsecurity spendinginIndiatotouch$1.7bnin2018,saysGartner Silicon Valley
ROMITA MAJUMDAR experience people can com-
Mumbai, 30 August mand salaries of ~1.2 to 1.5 mil- KIRAN RATHEE
lion per annum and at it goes New Delhi, 30 August
Enterprise information secu- up to ~9 million for profession-
rity spending in India is als with 15 years of experience,” Electronics and information
expected to touch $1.7 billion he says. technology minister Ravi
(around ~120 billion) in 2018, This demand is driven by Shankar Prasad, on a four-day
up 12.5 per cent from 2017 the prevalence of Cloud servic- trip to the US, met leaders of
driven largely by a lack of es as well as a greater visibility Silicon Valley tech firms, call-
skilled security professionals, of cyber attacks and data ing them to forge deeper part-
says research firm Gartner. breaches in recent times, he nership with India and invest
Within this, security serv- adds. in an “improved” climate.
ices market is expected to grow Organisations continue to feel the pressure to find the right The investments on secu- Firms such as Apple,
faster at 13 per cent to touch $1 people with right skills to grow their security teams rity professionals make sense Amazon, Mastercard,
billion in 2019 when the overall when one considers that the Microsoft, Qualcomm, Walt
market will be $1.9 billion. This known technology firms for a looking to acquire more- Indian financial sector Disney, and PayPal, among
skills shortage is also driving greater career scope. advanced capabilities in reported the highest per capi- others, met the minister at a
enterprises to spend more on Such organisations, in turn, these areas. ta cost of data breaches at seminar organised by US-
security tools and services to are forced to look for security Organisations continue to ~6,210 whereas the least aver- India Strategic Partnership
cope with the demand. service providers to consult or feel the pressure to find the age cost was reported by Forum and the Consulate
“Skill shortages continue outsource their security needs, right people with right skills to organisations in the public General of India. Prasad also
to persist although India is Deshpande adds. grow their security teams, par- sector at ~1,813 in 2017, met chiefs of Google, Wipro,
better placed than a lot of oth- In the coming years, prod- ticularly given the 24X7 nature according to a security report Oracle, and GE.
er regions. But due to the high ucts such as integrated risk of security operations. These by IBM. Inviting the US compa-
demand for security skills, a management software, data skills shortages are driving the Mayur Saraswat, head of nies, Prasad said: “India
lot of end user organisations security, infrastructure pro- demand for security services, sales and digital at TeamLease, offers improved investment
are not able to attract skilled tection and identity as well as particularly security outsourc- says with the adoption General climate, growing market, a
resources,” says Siddharth network management will see ing, managed security services Data Protection Regulation in large pool of talent and
Deshpande, research director high demand. and security consulting. Europe, the demand from improved profitable destina-
at Gartner. These established securi- Kris Lakshmikant, founder companies for data protection tion for investment.”
Manufacturing and utility, ty product segments benefit and managing director of HR and cyber security profession- Prasad asked the tech
FMCG, retail and ecommerce, from strong growth rates, firm Headhunters, notes that als has increased manifold. giants to invest in tier-II and -
logistics and energy compa- thanks to net new adopters over the past 18 months itself, “Within the next year itself, III towns. He said develop-
nies, among others, are facing who are looking to rapidly there has been a steep increase we can expect a 50 per cent ment of medical electronics
this dearth as they are increas- increase their investments in in demand for cyber security jump in demand and this was a priority for the govern-
ingly seeking skilled resources, security technology. Additi- professionals. “The demand is demand will be for skills rather ment and incentives would be
who in turn opt for better- onally, existing buyers are such that even at 3 years of than experience,” he said. available at both the central
and state levels. He also
sharedviewswiththeheadsof
tech giants on the emerging

DLF’s rentalarmaimsformid-teenEbitda growth data security issues in India

RAGHAVENDRA KAMATH
Mumbai, 30 August
DLF Cyber City Developers (DCCDL), the
rental arm of leading real estate company
DLF, will work on achieving mid-teen
growth in Ebidta, company’s chairman
KP Singh said in the annual report of
2017-18 financial year.
“The free cash flow generated from
DCCDL annuity income shall be judi-
ciously utilised for capital expenditure,
deleveraging and increasing dividend flow
to its shareholders,” Singh said.
Singapore’s sovereign fund GIC had
bought 33.34 per cent in DCCDL for
about ~90 billion. DLF has the remaining
66.66 per cent stake in the joint venture
(JV) firm DCCDL. “DLF’s partnership
with GIC has positioned your company
for faster growth in the office and retail
space. In addition to capturing the
growth within DCCDL, your company
can continue to develop offices or retail
malls outside the JV,” Singh said.
The JV between DLF and GIC Real
Estate was set up with a twin objective: to
strengthen the balance sheet of DLF and
significantly deleverage development
business, and to focus on accelerated
growth of DCCDL, he said.
Singh said the firm would sell future
projects once they attained a degree of
progress and reduced uncertainties.
Singh said the development business
would be driven by appropriately utilis-
ing free cash flow into new projects with
high returns and balance free cash flow
to build up cash reserves for any potential
initiatives. “Your company today has fin-
ished inventory worth approximately ~150
billion (net of construction expenses),
which it shall continue to sell over a peri-
od of time,” he said.
Singh said the company would sell
future projects once they attained a
degree of tangible progress and reduced
uncertainties.
The company has already started con-
struction of residential complex at Capital
Greens IV, New Delhi, which is part of 7
million sq ft in another JV with GIC.
“Further, projects are being identi-
fied for development, with an objective
that inventory available for sale could be
continuously replenished in a four-year
cycle,” he said.
and emphasised that the gov-
ernment was aware of the
need to strike a balance
between data availability, data
anonymity, data innovation,
datasecurityanddataprivacy.
Visiting Sundar Pichai,
chief executive of Google,
Prasad discussed the role
technology could play in
empowering Indians.
After his visit to the
Mountain View office of
Google, Prasad tweeted: “I felt
so pleased to see many Indian
professionals working at the
@Google campus in
California including the CEO
@sundarpichai and Ben
Gomes, Vice President of
Google Search.”
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4 ECONOMY & PUBLIC AFFAIRS MUMBAI | FRIDAY, 31 AUGUST 2018

“Prime Minister Modi should answer “Considering the pace at which the works are “I appeal to all political parties to come
why he inflicted a deep wound like awarded and getting completed, we are hopeful together and demand that till the time VVPAT
demonetisation when issues like that by March 2020, the Ganga will be completely machines or ballot paper system are not
unemployment, low GDP rate remained” clean. It is a difficult task, but we will complete it” made available, we will not fight polls”
RAHUL GANDHI NITIN GADKARI RAJ THACKERAY
Congress president Union minister Maharashtra Navnirman Sena chief
>

IN BRIEF
Link airfares to inflation, do away
with dynamic pricing: Parl panel
Aviation ministry seeks sops from
Some of the members of a parliamentary panel have suggested
that the government should look at linking airfares with
inflation instead of dynamic pricing system and also cap the
ticket prices, sources said. The suggestions were made by some
FinMin to boost distressed sector
Asks for tax cut on jet economy class tickets have a levy of
members of the Parliamentary Standing Committee on PERFORMANCE CARD ~mn 5 per cent. Input tax credit is allowed
Transport, Tourism and Culture during a meeting with senior fuel, credit on GST, Q1 FY17 Q1 FY18 only on input services. Business and
officials of the civil aviation ministry on Wednesday. There have
been persisting concerns about steep fluctuations in air ticket and green light to 5,350 8,111 first class tickets have a GST rate of
12 per cent, but full input tax credit.
prices during festival seasons and calamities. Against this
backdrop, some members of the panel recommended that
airlines for ECBs -13,230
1,749
381 278
“Input credits for economy class
should be allowed. The matter might be
airfares should be linked with inflation, rather than the prices ARINDAM MAJUMDER & ANEESH PHADNIS followed up with the revenue depart-
being determined on the basis of demand, a source, who was New Delhi/Mumbai, 30 August ment,” said a chief financial officer
present at the meeting on Wednesday, said. Few members also (CFO) of a private carrier.
suggested that ticket prices could be linked with that of Aviation

Turbine Fuel (ATF). Members wanted that there should be
maximum and minimum limits on airfares on all routes, the
source said. ATF accounts for a substantial chunk of the
operational expenses incurred by airlines. In recent months,
crude oil prices have been on the rise, adversely impacting the
profitability of the carriers.
FM: India to pip UK
to be 5th-largest
economy next year
India is likely to surpass the
UK to become the world’s
fifth-largest economy next
year on growing
consumption and strong
economic activity, Finance
Minister Arun Jaitley said on
Thursday. He also exuded
confidence that India
would be among the top
three global economies in
the next 10-20 years. “This
year, in terms of size, we
have overtaken France.
Next year we are likely to
overtake Britain. Therefore,
we will be the fifth-largest
(economy),” he said while
inaugurating the office
building of the Competition
Commission India. India’s
gross domestic product was
valued at $2.597 trillion at
the end of 2017 overtaking
French economy, which
was amounted at
$2.582 trillion last year. PTI<
Irdai executive
director Tangirala's
tenure cut short
The tenure of Maruthi
Prasad Tangirala,
executive director of
insurance regulator Irdai,
has been cut short by the
Centre, an official order
said on Thursday.
Tangirala is a 1990 batch
officer of Indian Post and
Telecommunication
Accounts and Finance
Service. The competent
authority has approved the
premature repatriation of
Tangirala, ED, Insurance
and Regulatory
Development Authority of
India (Irdai), Hyderabad,
on personal grounds, the
order issued by the
personnel ministry said.
PTI<
PTI<
Centre, states
share ~120 bn
IGST in August
As much as ~120 billion
lying in Integrated GST
or IGST pool has been
apportioned between the
Centre and states. The
central government will get
about ~60 billion and the
remaining would be
distributed among the
states in proportion to their
revenue collection in
August, an official told. The
apportionment would help
improve the indirect tax
position of both the Centre
and states. This is the third
time that the IGST funds
have been divided between
the Centre and states. As
much as ~500 billion was
settled between the Centre
and states in June, and
~350 billion in February
this year. PTI<
Natural gas price
may be hiked by
14% from Oct
The government may from
October raise price of
domestic natural gas by over
14 per cent, a move that will
translate into higher CNG
price and increased cost of
electricity and urea produ-
ction. Price paid to most of
the domestic producers of
natural gas is likely to be
hiked to $3.5 per million
British thermal unit (mmBtu)
from October 1, from the
current $3.06, sources privy to
the development said.
Natural gas prices are set
every six months based on
average rates in gas-surplus
nations like the US, Russia
and Canada. Sources said the
price revision is likely to be
announced on September 28.
India imports half of its gas
which costs more than dou-
ble the domestic rate. PTI<
Economy likely to
grow at 7.6% on
favourable base
effect: Report
PRESS TRUST OF INDIA
New Delhi, 30 August
The economic growth is
expected to rise to 7.6 per
cent in the April-June quar-
ter of 2018-19 (FY19) from a
sub-6 per cent figure in the
year-ago period, mainly
due to a low-base effect,
says a report by HDFC
Bank.
According to a HDFC
Bank research report, growth
numbers across sectors in
the first quarter are likely to
get a boost from a favourable
base effect even as there are
some genuine signs of
revival in the economy.
The major push to
growth is likely to come
from the manufacturing
and the services sector,
while agricultural growth is
also likely to be supportive,
the report added.
“We expect GDP growth
rate to rise to 7.6 per cent in
the first quarter of FY19
from 5.6 per cent in the
same time last year. Lead
indicators show strength in
the manufacturing and the
services sector,” Abheek
Barua, chief economist,
HDFC Bank said in
the note.
T
he aviation sector, currently Domestic airlines, especially
weighed down by distress, could low-cost carriers, have pitched for
soon get a breather, with the Jet Airways SpiceJet IndiGo full input tax credit on economy
government planning reforms that Source: Companies class tickets.
might provide tax relief and allow air- “In the absence of any exemp-
lines to tap foreign lenders. tion on import of aircraft and air-
The civil aviation ministry is in in a meeting with Finance Minister pensate for its losses as global crude the full effects of such high taxes were craft spares, ATF not being covered
discussion with the finance min- Arun Jaitley earlier this week, said prices fell to $30 a barrel. The crude masked. Now, they are more evident. within the ambit of the GST, and
istry to lower tax rates on jet fuel or these steps could help the industry. prices have since doubled. The aviation ministry has also with such restriction on credit of
ATF, increase advantages under the Sources privy to the discussion ATF costs are a big pain for Indian asked for input tax credit under the inputs on economy class, the cost
goods and services tax (GST), and said the civil aviation ministry has carriers. Besides the Centre’s duty, GST on economy class tickets. and cash flow impact to the airlines
allow airlines to raise working cap- asked for a cut in excise duty from states also have their own sales taxes, The GST, which was rolled out on is likely to be very detrimental,” the
ital loans abroad. Civil Aviation 14 per cent to 8 per cent on aviation and the airlines often end up paying July 1 last year, provides for certain CFO quoted above said.
Minister Suresh Prabhu and Minister of turbine fuel (ATF). The government up to 29 per cent levy. When the oil input tax credit only on business class
State for Civil Aviation Jayant Sinha, had raised the duty in 2016, to com- prices were low between 2014 and 2016, tickets. In the new indirect tax regime, More on www.business-standard.com
Small players point to problems in Rupee hits fresh
multi-year motor insurance policy low, at 70.74/$
ANUP ROY
SUBHOMOY BHATTACHARJEE
New Delhi, 30 August
INCREMENTAL COST OF LONG-TERM INSURANCE Mumbai, 30 August High oil prices
BASED ON ESTIMATED VALUES 3-YEAR TOTAL PREMIUM The rupee slipped further to yet will remain a
Smaller players in the motor
insurance business have rushed
% of insured
declared
3-year
comprehensive
I-year OD
+3 year TP
another record low, prompted
by sustained dollar demand by concern: IEA
to bring out in the open key dif- value oil importers, and possibly In what could be bad news
ferences within the industry
Average own damage 5 2 defence-related purchases. for the consuming countries
about moving to multi-year Average own damage premium 2.0 premium= 2*FT A possible US sanction on such as India, the
policies, which they fear could Average third party premium 0.5 TP long term premium=3*FT 1.5 1.5 India, if it goes ahead with buy- International Energy Agency
hurt their bottom line. Ahead Original one-year premium 2.5 Add ons=5*FT 2 0.8 ing Russian air defence system, (IEA) has said crude oil prices
of the deadline to introduce also weighed on the senti- are likely to rise further in
multi-year insurance policies Add ons premium 0.8 Long-term premium 8.5 4.3 ments, currency dealers said. 2018 and may remain above
from Saturday, the differences Total 3.3 Long-term incl GST 10 5.1 The partially convertible $75 a barrel for some time,
could cripple the most prof-
Total, including GST 3.9 Total incremental cost 6.1 1.2 currency fell to its intraday low owing to the geopolitical
itable segment of the general of 70.86 a dollar, but closed at situation across the
insurance industry. Factor for long term (FT)* 250 Source: industry estimate; * For third party claims 70.74 a dollar, as the central world — including Iran
Some of these companies bank sold dollars in the market sanctions and a drop in
have apparently quoted to cool the exchange rate off. Venezuelan production.
the regulator, Insur- cies as a cure for a typ- policies. Most insurance com- the quick roll-out of the new So far this year, the rupee Fatih Birol, executive
ance Regulatory ical problem on panies tie up with motor dealers insurance products. has fallen 9.7 per cent, making director, IEA, said the world
Development Indian roads. The to offer insurance when cus- A company CEO said, “We it the worst performing cur- may “unfortunately see a
Authority of India court observed that tomers buy their vehicles. should use this chance to claim rency in Asia. The rupee’s loss further tightening of
(Irdai), supporting many road accident According to the version of that (court) directive is not solv- against the dollar in the last markets” towards the end
their position. The victims cannot claim smaller companies, in the ing the compliance problem. few days comes in the back- of this year, which will in
aggressive postures have compensation from meeting between the CEOs of Otherwise, we are weakening drop of weakness in emerging turn put upward pressure
made it difficult for the indus- insurance companies as the the insurance companies the our stance saying the difficul- market currencies, particular- on prices unless the
try association, General vehicles, especially commercial Irdai chief, Subhash C Khuntia ties are just technical.” ly the Turkish lira, which fell Organization of the
Insurance Council (GIC), to ones, are often not insured. said, “The problem of too For the non-life insurance more than 5 per cent. The Petroleum Exporting
offer a common position on the Motor Vehicle Acts of each much dependence on OEM companies, the stakes from South African rand and the Countries go for a significant
issue before the Supreme Court state make it mandatory for any channel, potential increase in the Supreme Court order are Indonesian rupiah also fell increase in production. He
to defer the deadline. vehicle to sport a third party payouts and not having a lev- quite high. About 47 per cent sharply. However, the US dol- indicated it is likely to
The companies issued their insurance policy. With a policy el playing field in the interest of the total business of the lar has largely kept steady remain over “$75 a barrel”
own versions of the key min- around, if the vehicle is involved of policyholders, channels industry comes from motor against major global curren- for some time. SHINE JACOB
utes of a meeting the CEOs had in an accident, injuring or killing and insurance companies was insurance and a more than a cies, and in the past few days,
with the sector regulator, Irdai someone, the victim’s relatives also discussed....policyhold- fifth of it is generated in the has lost against major curren-
Chairman, S C Khuntia, last can claim compensation from ers are a silent majority in this automobile dealers show- cies on some days. $77.64 a barrel on Thursday.
week. By convention, the min- the insurance company. The matter and any solution rooms, an Assocham report The dollar index, which “Oil prices are not com-
utes are issued by the GIC. But claim is in proportion to the loss should look at overall princi- from 2016 shows. measures the greenback’s ing down, and it will need a
some of these companies pre- of income from the victim. To ple of fairness.” As the table shows the strength against major global strong good news on
empted it by bringing out their ensure there is an insurance pol- These companies also claim industry is concerned that long- currencies, was trading at the oil front to get a handle
version of what happened in the icy in force when the accident that as there is high level of com- term motor motor insurance 94.583, down 0.02 per cent on the exchange rate now,”
meeting. The minutes often takes place, the court has pliance by private cars (90 per policies would adversely from its previous close. said a senior trader with a
decide the companies’ business ordered that all single-year third cent renew their policies) the impact the customer choice, One major reason for the foreign bank.
plans, so the changes carry a lot party policies be converted to industry should not be forced raising insurance costs by at rupee’s loss, however, is the Even as portfolio flows
of weight. three-year ones for cars and to issue long-term insurance least 6 per cent. Since insurance continued rise of crude oil turned negative year-to-date,
The court has ordered the five-year ones for two-wheelers. policies. The GIC wants to take for a hatchback in the first year prices. Crude oil prices rose as in August, the flows have
insurance industry to move to
multi-year motor vehicle poli-
There are 21 companies in
India that sell motor insurance
a softer tone and urge for more
time, simply citing problems in
is at least ~20,000, this is a sub-
stantial additional outgo.
supply shrank after the Iran
sanctions. Brent crude touched
been positive, but only mar-
ginally.
Policy mismatch to haunt insolvency of power assets
SHREYA JAI had both the power purchase agree- ise, but we will not invest any equity
New Delhi, 30 August ment (PPA) and coal supply in place. in any stressed project,” said an exec-
The power ministry has identified PLUGGED IN utive in the know.
When the Allahabad High Court (HC) 66 stressed power projects across coal, An insolvency professional (IP) of a
in its judgment observed that stress in gas and hydro, against the finance min- power company said consultants are
the power sector is due to fundamen- istry’s list of 34 coal-based stressed proj- being hired to analyse the viability of
tal issues and not because of any cir- ects. More than 24 stressed power proj- such incomplete projects and their
cular by the Reserve Bank of India, it ects that could face insolvency cost of completion. Adding that this
only depicted the sorry state of the sec- proceedings will find it hard to procure problem will be faced by several proj-
tor, mismatched policies, and regula- buyers because they are “incomplete”. ects, the IP said the main problem
tions of the past decade. In case they do not find one, they will about getting bidders was that they
A high-powered committee (HPC) have to face liquidation. Most of the 40,130 Mw 14,000 Mw were uncertain about the cost of com-
under Cabinet Secretary P K Sinha, set incomplete projects are due to cancel- Total coal-based stressed assets Total gas-based stranded capacity pletion of the project.
up to provide solutions for the prevail- lation of coal block allocation, delay in identified by the FinMin identified by the power ministry Senior government officials said the
ing issues in the sector, is expected to getting land and/or environmental HPC would make sure the prevailing
hold its first meeting on Friday. This clearances, and local unresolved issues. problems are resolved. Nonetheless,
committee has been directed by the The new buyer will have to face the 8,460 Mw 11,100 Mw 7,620 Mw 10,430 Mw besides coal, there are 14,000 Mw of
Allahabad HC to devise a framework same issues which landed these assets Projects with Ongoing Coal supply Projects with no gas-based power projects which do not
by September this year. in insolvency in the first place. Coal no progress resolution tie-up under power purchase have any gas supply. These could face
With the 180-day deadline con- supply to operational projects is below on ground outside NCLT Shakti scheme agreement a hard time as there was no likelihood
cluding on August 27, stressed power optimum, as claimed by the industry. of any assured supply either. The
assets are looking for a restructuring There has been no fresh issuance of Centre discontinued the scheme to
plan from their lenders. Business PPA by any state in the past six years. “There is a handful of business groups, are looking at the consultancy and offer subsidised gas last year. The oth-
Standard reported that close to Hopefully, power demand has regis- corporate, and private equity players operations & management business er 14,000-Mw project, which received
30 power projects will end up in the tered a healthy 6 per cent growth, but who have an appetite for acquiring opportunity in this insolvency wave. gas, has enough to run at barely 30 per
bankruptcy court, starting this week. the poor financial health of the state- power sector assets. They will be selec- “State Bank of India (SBI) reached out cent plant load factor or operating ratio.
Of the six projects where resolution owned distribution companies (dis- tive in choosing assets in the NCLT. It is to us saying they would want us as The hydropower projects have
has commenced outside the National coms) is a worry among investors, said going to be a buyer’s market.” the operations partner for the stressed another sad tale to tell. Embroiled in
Company Law Tribunal (NCLT), one a market analyst. State-owned thermal power behe- asset in which the bank takes the regulatory niggles, local protest and
has found a buyer. Jaiprakash Also, there are hardly any buyers moth NTPC has not accepted but not equity. We have not got any list or environmental hurdles, these hydro
Associates’ operational power project for the same reason. The ones which denied looking at buying some proposal as yet. Power Finance projects have been stalled for years.
(1,980 megawatt, or Mw) at Bara was have received any interest has been stressed assets either. “We will evaluate Corporation and Rural Electrification The hydro sector has been awaiting a
bought by Resurgent Power – a joint from selective buyers — JSW Energy, only those assets where the coal sup- Corporation did hold discussions for conducive hydropower policy, but that
venture (JV) promoted by Tata Power Adani Enterprise, Resurgent Power, ply, power sale agreement, and other setting up a JV for buying and man- has been stuck for want of budgetary
and ICICI Bank. A close look at the proj- and foreign banks like Bank of America. necessary regulations are in place,” aging stressed assets, but there has support.
ects reveals this success cannot be repli- Anil Gupta, vice-president and head said a senior NTPC executive. been no conclusiveness. As a compa-
cated since the power plant in this case financial sector rating, Icra, said, The executive further added they ny, we are ready to share our expert- More on www.business-standard.com
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official
6 ECONOMY & FINANCE
>
MUMBAI | FRIDAY, 31 AUGUST 2018 1

Strike off firms ‘missing’ from 2 YEARS AS RBI GOVERNOR

Demonetisation to bad loans,

registered offices, says panel Patel navigates choppy waters
This was recommended by an expert committee ADVAIT RAO PALEPU
Mumbai, 30 August
reviewing various provisions in the Companies Act
If the first year of Urjit Patel's tenure as the
VEENA MANI off 226,000 companies from the register Reserve Bank of India (RBI) governor was
New Delhi, 30 August for not filing statutory returns. Notices all about demonetisation, the second year
to another 225,000 companies are being was focused on fighting the bad assets mess

I
f the office of your company is not sent for similar lapses. in the banking industry, often at the cost of
at the registered address you have As far as “vanishing” companies are ruffling a few feathers in the North Block
given to the Registrar of Companies concerned, the government has anoth- and upsetting powerful business lobbies.
(RoC), it might soon be categorised as a er drive to track each of them. Heading to the third year, will he be
shell firm. As many as 77 out of the 200 “van- busy firefighting a currency crisis? MAJOR
An expert committee
reviewing various provi- Earlier, the
ishing” companies that
came under the scanner
Almost no governor of the RBI man-
aged to evade it and Patel perhaps knows it. INITIATIVES
sions in the Companies Act government had
has recommended that struck off names
between 1996 and 2004,
continue to remain missing,
He is amongst the first and few central
bankers globally to publicly acknowledge
UNDER PATEL
those firms which do not of only those even as others have been that the world is heading towards a cur-
maintain a registered office companies that traced. Many of these rency war. And if so, the Indian rupee is per-
should be struck off the had not filed untraceable companies did haps one of the worst-hit. First year Second year
RoC. Earlier, the govern- returns not list after filing for an ini- So far this year, the local currency has
ment had struck off names tial public offering (IPO). 70 of them. fallen more than 9 per cent, and the | First Monetary Policy Committee | Began background work on public
of only those companies that had not About 100 firms responded to notices The panel has also made recom- exchange rate is already at its lowest level meeting to set interest rates held credit registry
filed returns. issued on them. The Ministry of mendations on remuneration for inde- ever, heading fast towards ~71 per US dollar. | Demonetisation and | Banned users, traders, brokers and
Committee members said this would Corporate Affairs is still trying to track pendent directors. The total bad debt of the Indian banking remonetisation of 87 per cent entities dealing with virtual
prompt the government track the direc- the missing firms. It has said the remuneration of an system at the end of June 2018 stands at lit- of currency notes currencies
tors of such companies. Till now, the According to government records, independent director should be capped tle more than ~10 trillion, up from ~6.55
government has been cancelling regis- these companies have been termed at 20 per cent of their gross annual trillion two years ago. At least ~3.5 trillion of | Guidelines set for payment banks | Set up expert committee to look at
tration only to track “vanishing” firms as “vanishing” as their directors are income. Apart from this, the committee the bad assets are undergoing bankruptcy and an Enforcement Department divergences in banks’ asset quality
— firms that exist only on paper. also not traceable. First information has recommended ways to declog the proceedings, and almost an equivalent formed within the RBI | Discontinued Letters of
The government has already struck reports have already been filed against National Company Law Tribunal. amount may head towards National
| Rationalisation of merchant Understanding and Letters of
Company Law Tribunal, according to rat-
ing agency Icra Ltd.
discount rates to increase Comfort trade-financing facilities
Some prominent companies have card-payment adoption | Allowed commercial banks to

Microfinance sees 39% Better bond

yields boost
been sold off by banks to recover their
dues under the insolvency code, or are in
the process of getting folded up. Many
more will be dragged, essentially chang-
| 12 large stressed corporate accounts
sent for IBC proceedings
co-originate loans with
non-banking finance companies

rise in loan portfolio short-term

NAMRATA ACHARYA
Kolkata, 30 August
Defying muted credit growth
in the banking sector, the
microfinance sector registered
a growth of around 39 per cent
on a year-on-year basis, with
the total outstanding loan
amount at ~1.48 trillion at the
end of June 2018, according to
data released by Microfinance
Institutions Network (MFIN).
According to the data from
the Reserve Bank of India,
gross bank credit increased by
11.07 per cent in June on a year-
on-year-basis, while microcre-
dit grew by 48.3 per cent.
Over the past few months,
most MFIs (microfinance insti-
tutions) have been recovering
from the after-effects of
demonetisation and govern-
ment-mandated debt waivers.
However, with the majority
of non-performing loans writ-
ten off, MFIs are again looking
at growing their portfolios.
Several of the MFIs have been
exploring the option of initial
public offerings (IPOs) to raise
funds. Banks hold the largest
share of microloans at 39 per
cent, followed by non-banking
finance companies (NBFC)-
MFIs accounting for 32 per
cent of the total loan out-
standing. Small Finance Banks
had a share of 21 per cent,
CREDIT BOOK
Outstanding microfinance
loans as on June 2018
Loan (%) YoY
dues (~ bn) growth
Banks 580 51
NBFC MFI 476 50
SFB 310 8
NBFC 104 74
Non-profit 10 13
bodies
Total 1,480 39
Source: MFIN
while NBFCs at 7 per cent and
non-profit accounting for
remaining one per cent of the
microfinance pie.
About 64 per cent of the
bank lending to the MFI sector
was direct lending, while the
rest was through banking cor-
respondents. The portfolio at
risk (loans that have at least
one payment for more than 30
days overdue), which were 10.7
per cent in June 2017, stood at
3.2 per cent at the end of June
2018, signifying a significant
improvement in the asset qual-
ity of microloans.
Cashless disbursements by
NBFC-MFIs now account for
87 per cent of the total dis-
bursements. In Q1 FY 2018-19,
a total of ~114 billion was dis-
bursed in cashless mode in
about 4.2 million loan
accounts. According to Harsh
Shrivastava, MFIN CEO,
“Microfinance industry has
gained pace, showcasing
growth in the past quarters.
We see more new players
entering the space and the
current ones growing larger
realising their IPO plans.
Additionally, improved
investors’ confidence, due to
proper regulations in place
and the increased transparen-
cy in the sector, will also sup-
port the growth story.”
In Q1 of FY19, NBFC-MFIs
received a total debt funding of
about ~102 billion, which is a
whopping 160 per cent growth
over Q1 of FY 18. The total equi-
ty in the NBFC-MFI sector was
about ~103 billion, of which
about 48 per cent belonged to
the category of foreign equity.
In terms of regional distribu-
tion of portfolio (GLP), east and
north east accounts for 35 per
cent of the total NBFC-MFI
portfolio, south 26 per cent,
north 15 per cent, west 14 per
cent and central region con-
tributes 10 per cent.
Karnataka, Odisha, Bihar,
Uttar Pradesh, and Tamil
Nadu are the five top states in
terms of loan amount out-
standing, accounting for 53
per cent of total GLP of the
NBFC-MFI segment.
paper volume
ABHIJIT LELE
Mumbai, 30 August
The firming up of bond
yields in the last one year has
improved attractiveness of
short-term paper such as
commercial paper (CP). The
pool of outstanding CPs saw
a 96 per cent growth at ~6.39
trillion in the 12 months
ended July 2018, according
to rating agency Icra.
It, however, warned that
such excess rise carries cer-
tain risks, such as rollover
paper on maturity and liq-
uidity.
The rise was also partly
due to CPs issued for funding
initial public offerings for
HDFC Asset Management
Company. It has spiked the
CP outstanding volume by
~700 billion. However, even
excluding this, the YoY
growth in CP stood strong at
75 per cent, ICRA said.
While the CP rates have
hardened, the spread over
the call money rates also
widened from 60-80 bps ear-
lier to 130-140 bps per cent
during Q4FY2018 and
Q1FY2019.
Excess reliance on short-
term debt poses rollover
risks and hence liquidity
risks for the borrowers.
ing the way business and credit has been
run in India thus far. Suffice to say that
under Patel, banks have been empow-
ered, but bankers are not happy with the
RBI’s inflexibility in providing some lee-
way when it comes to addressing bad
debts, in particular, the ~1.77 trillion worth
of power sector loans.
“Swift, time-bound resolution or liqui-
dation of stressed assets will be critical for
de-clogging bank balance sheets and for
efficient reallocation of capital,” Patel said
in a speech last year.
While bankers may not like it, some
analysts found the RBI’s stance com-
mendable. After the introduction of
Insolvency and Bankruptcy Code (IBC) in
December 2016, stressed corporates or
companies and their outstanding debt
have to be resolved according to a time-
bound process. However, the banks have
incurred heavy haircuts when it comes to
resolving their debt exposure.
In the case of power sector loans, the
banks pleaded with the central bank, and
got some support from the government as
well, to extend the stressed asset resolu-
tion deadline of August 27. But the central
bank showed no sign of budging.
"The RBI has been vindicated by the
Allahabad High Court, in terms of its stern
stand on the power sector NPAs. The major
achievement is that after putting in place a
new framework in February, the RBI has
stuck to it and ensured that there are no
exceptions,” said an economist, who
wished to not be named.
“There is pressure on the RBI as banks
would like more flexibility in terms of
resolving the stress, the government may
want more leeway to resolve certain sector
specific NPAs, but the RBI has stuck to its
guns. This shows a lot of character from the
RBI under the aegis of Patel," said the econ-
omist. The RBI under Patel also won’t allow
some stressed banks to breathe easy.
As of date the RBI has placed 11 com-
mercial banks under its highly restrictive
Prompt Corrective Action (PCA) frame-
work, which impairs normal business
activities. The banks are capital-starved,
but are required to put aside the same
amount of capital as required for a healthy
bank to take care of their bad loans.
While the aim is to clean up the bal-
ance sheets, investors in these banks have
long junked the stocks expressing their
doubt in the RBI’s prescription.
Patel also came down heavily on banks
hiding their bad debts. The divergence
found between the reported bad debt and
what the RBI auditors found led to the RBI
pulling the rug from under the feet of at
least one chief executive of a private bank.
The fact that large divergences were
observed “has adverse implications on
timely recognition of actual risk, trust-
worthiness and transparency of books of
accounts and management effective-
ness”, Patel said.
Soon after Patel took charge as the gov-
ernor, demonetisation invalidated 87 per
cent of the cash in the system. After facing
some initial hiccups, the RBI and the banks
managed the situation well and the short-
age of cash was resolved in a few months.
Patel’s tenure is the first at the RBI
wherein the country’s monetary policy
was set by a six-member Monetary
Policy Committee (MPC), headed by the
RBI governor.
"The RBI under Patel has conducted
its monetary policy functions in an exem-
plary fashion with the new structure of
the MPC, as opposed to the previous
regime wherein there were conflicts
between what the governor wanted and
what the government wanted. Now with
the committee approach, decisions are
being made more transparently," said a
chief economist with a research firm.
Patel also aggressively accumulated
foreign exchange reserves, peaking at $426
billion in mid-April. The reserves have
come off from their highs, but are still
above $400 billion.
Much of the reserves have been spent
to fight a rupee slide, which has brought
the Indian currency to ~71 a dollar, a record
low. “Trade skirmishes evolved into tariff
wars and now we are possibly at the begin-
ning of currency wars,” Patel said at a post-
policy briefing earlier this month.
Relationship with the government
Appearing before the Parliamentary
Standing Committee on Finance, which is
evaluating the effects of demonetisation
and the rising bad debt levels in banks
amongst other issues, Patel faced tough
questions from Members of Parliament.
He was also questioned on the RBI’s
powers of oversight in light of a trade-
financing scam of ~143 billion at Punjab
National Bank, allegedly committed by
diamantaires Nirav Modi and Mehul
Choksi. He told the committee that the
RBI has "inadequate" control over the
public sector banks (PSBs) and that the
RBI should have more powers to control
the government-owned banks.
Patel time and again became vocal in
protecting the central bank’s turf.
In a speech in March this year, he said
that the central bank's regulatory author-
ity over public sector banks was weaker
than that over the private sector banks,
and that the "system of dual regulation
by the finance ministry in addition to
the RBI" when it came to public sector
banks was the cause of the sector's bad
debt problem.

> FROM PAGE 1
Flipkart...
In case the seller of such shares
in Flipkart Singapore is a tax res-
ident of Singapore or Mauritius
or any other country, which has
a tax treaty with India exempt-
ing such capital gains from
income tax in this country, it
may claim treaty benefits. Such
an entity must however fulfill
the substance or limitation of
benefits requirements as per the
relevant treaty.
Walmart is learnt to have
assured the I-T department that
it would fulfill the tax obliga-
tions. “We take seriously our
legal obligations, including the
payment of taxes to govern-
ments where we operate. We
will continue to work with
Indian tax authorities to
respond to their inquiries," the
Walmart spokesperson said.
The tax treaties with
Singapore and Mauritius were
recently amended and capital
gains tax exemption in India
would not be available in respect
of any investment made after
April 1, 2017, from these coun-
tries. However, such applicable
tax rate in India could be
reduced by half, if such shares
acquired after 31 March, 2017,
are sold before April 1, 2019.
Flipkart had earlier dis-
cussed the share purchase
agreement with tax authorities
to calculate the tax rate that
would be applicable to investors
in Flipkart selling their shares to
Walmart. SoftBank, Tiger
Global, Accel Partners and
Naspers were among the major
foreign investors in Flipkart.
Despite shares of Flipkart
Singapore getting transferred to
Walmart, gains arising from such
a transaction could be subject to
income tax in India considering
that substantial value of such
shares is being derived from
India, an official said. As per indi-
rect transfer provisions of Indian
income tax laws, value of shares
of a foreign company is deemed
to be substantially derived from
India if the value of the Indian
assets is greater than 50 per cent
of its worldwide assets, which
seems to be the case for Flipkart.
Taj auction...
In a recently held meeting, the
NDMC decided to lower the
minimum net worth require-
ment for prospective bidders to
~2 billion. The requirement was
~3 billion in the previous two
tenders, which had to be
scrapped. The auction process
in the months of June and July
was annulled because the
Council failed to attract bids
from minimum three entities.
While Indian Hotels, the current
operator of the luxury hotel, was
the sole bidder in the first auc-
tion, rival ITC joined the fray in
the second one.
The NDMC has also relaxed
the minimum average turnover
criterion for bidders. The three-
year average turnover require-
ment is relaxed to ~3.5 billion
from ~4 billion earlier. Bidders
can also now consider the 2017-
18 audited results while calcu-
lating the three-year average
turnover. Hotel companies
have seen an uptick in revenues
last year on account of higher
occupancy and improved tar-
iffs.
Documents reviewed by
Business Standard show the
NDMC estimates that the suc-
cessful bidder will have to invest
~2.84 billion in refurbishing the
292-room hotel, which has been
operational since 1978. The next
operator will also have to pay an
upfront fee of ~533.6 million to
the NDMC and a performance
security of ~355.7 million. This
means a total requirement of
~3.73 billion.
The NDMC is of the view that
the bidder will go for a debt to
equity ratio of 1:1 (like it happens
in a typical hotel project) and
therefore the minimum net
worth criterion has been low-
ered. The Taj Mahal Hotel, the
document shows, posted rev-
enues of ~2.2 billion in FY17, with
a growth rate of 12 per cent over
the previous year.
The Council said these relax-
ations are being done with an
attempt to widen the pool of eli-
gible bidders even though the
actual number of bidders may or
may not go up. Industry experts
said the number of bidders is
unlikely to go up and Taj
Mansingh may remain a two-
way fight between Indian Hotels
and ITC. “It will be really tough
for a new operator to make mon-
ey after making such invest-
ments in the property,” said an
industry executive.
Indian Hotels had signed a
lease agreement with the NDMC
in 1976 and the hotel was inau-
gurated two years later. In 2011,
the 33-year-old lease ended.
When the NDMC decided to
auction the property, Indian
Hotels challenged the decision
in the Delhi High Court. After
several lease extensions, the
Supreme Court approved the
auction last April.
ICICI Bank...
All the promoter and promoter
group shareholders voted for her
reappointment, while only 2.27
per cent votes were against it.
At least two proxy firms had
advised investors to vote
'against' the resolution, saying
it would expose the company to
possible regulatory sanctions.
Kochhar is under investiga-
tion on a charge of conflict of
interest over a loan by the bank
to the Videocon group, which
had business dealings with her
husband, Deepak Kochhar.
US-based proxy firm Glass
Lewis had recommended to ICI-
CI Securities' shareholders to
vote against the proposal. "There
are significant legal and regula-
tory issues involving the ICICI
Securities non-executive chair
nominee Chanda Kochhar. We
believe shareholders should be
very concerned about the mat-
ters facing Kochhar, which
includes her being forced to take
a leave of absence from the ICI-
CI Bank board, pending the out-
come of the investigation into
her conduct," it had said.
"Further, the mere fact that
she has been forced to take leave
may be representative of serious
lapses of governance issues that
carry reputational risk issues
which may negatively impact
the company... we do not believe
shareholders should support her
candidacy at this time."
During the two-hour meet-
ing, most ordinary sharehold-
ers underscored their concerns
on a sharp fall in ICICI Securities'
share price. They urged man-
agement to use its 'cash-rich'
book to issue bonus shares.
Most of those were seen voic-
ing their displeasure over the
absence of Kochhar.
Kishorechandra J Panchal,75,
who said he voted against her
re-appointment, said he would
have wanted to express his dis-
appointment over the allega-
tions against her.
"There were much more seri-
ous issues that the shareholders
could have touched upon,
instead of just praising the man-
agement," said S K Patel, vice-
president of Bombay
Shareholders' Association, who
left the early without voting. He
said he didn't expect any change
from his vote.
This was ICICI Securities first
AGM after its listing in April. The
shares have lost over a third of
their value. Besides the weak list-
ing, the company has also been
in news over participation of
group firm ICICI Prudential
Mutual Fund in its IPO. The
fund house recently had to
divest part of its holding in ICI-
CI Securities to compensate unit
holders, following a diktat by the
Securities and Exchange Board
of India.
Kerala...
There are no precedents for
relaxing the FRBM limits for any
state due to natural disasters.
“The FRBM limits are strict-
ly defined and hence giving a
one-time relaxation to Kerala
because of the floods is unlikely,”
said an official. “The state is free
to borrow within its limits, and
the central government will
release more funds to help
rebuild the state after the
floods,” the person said.
As far as the central govern-
ment is concerned, a well laid-
down process is followed before
deciding the aid to be given to a
disaster-affected state, officials
say. In case of drought, it is the
Union agriculture ministry
which takes the lead, and in case
of other disasters, it is the Union
home ministry.
A team from the home min-
istry has already toured the state
and another will be deployed as
well to work with state officials
and assess the monetary sup-
port needed from central funds.
A panel led by Home Secretary
Rajiv Gauba will meet soon and
advise the political leadership
on the amount needed to be giv-
en to Kerala. This will be in addi-
tion to the ~6 billion already
allotted. However, this will only
happen after a formal memo-
randum is submitted by Kerala.
According to multiple
sources in the state government,
the World Bank officials already
had several round of talks with
the state finance ministry and
also the office of Vijayan. The
multilateral agency has assured
speedy release of funds. The
state is pushing for a loan of
~100-150 billion for 25 years, at
an attractive interest rate of
around 2.5-3 per cent.
Finance minister Thomas
Isaac, while presenting the
Budget for financial year 2018-
19, had announced that the
GSDP of Kerala for 2018-19 was
estimated to be ~7.72 trillion.
Based on this, the state’s current
borrowing limit of 3 per cent
may come to around ~231 bil-
lion. “We expect that the Centre
will agree to this as the World
Bank aid coming at such a low
interest rate will be more like a
grant,” the official said.
The FRBM limit can be
increased by the Centre if a state
fulfills the following criteria — a
state’s interest payments should
not be more than 10 per cent of
its revenue receipts, it should be
revenue surplus and the debt to
GSDP ratio should not exceed
more than 25 per cent.
Vijayan has also urged the
Keralites across the world to con-
tribute their one-month salary
for the reconstruction of Kerala.
He also urged the Malayali busi-
nessmen and industrialists
across the world to contribute
to the process of rebuilding
Kerala.
“The government is in the
process of rebuilding Kerala and
it will take into account every-
one's opinion while preparing a
draft for it. Rebuilding Kerala
envisages participation of
everyone irrespective of their
age or other differences,”
Vijayan said, addressing the
media on Wednesday.
Rehabilitation process of the
floods, that claimed close to 350
lives, has gathered momentum,
a total of 1,97,518 people belong-
ing to 53,703 families are stay-
ing in camps now, compared to
14,50,707 people belonging to
3,91,494 families on 21 August,
said a state government state-
ment.
Car sales...
Also, unlike the current sce-
nario when one gets the no-
claim bonus’ in the second
year if the vehicle hasn’t met
with an accident, one will have
to wait three years for this. One
does not know how the insur-
ance regulator will address it,
said the official.
Two-wheeler companies
are also bracing. To tide over
the impact of a possible slow-
ing in sales, Bajaj Auto on
Wednesday announced free
insurance for select models till
Friday. Its rivals have refrained.
A Hero MotoCorp spokesper-
son said it had no such plan,
while adding the new regula-
tion would translate into an
increase in the on-road price
of motorcycles and scooters,
affecting retail sales in the
short term. “However, the
demand remains robust and
we expect this to continue in
the long term,” he said.
JSW’s...
The letter also mentions that, if
required, JSW is open to revis-
ing its offer further and will dis-
cuss the same with the lenders.
The total outstanding debt of
the company, formerly pro-
moted by Jaiprakash
Associates, was understood to
be ~110 billion. PPGCL is a
3X660MW coal-based power
project in UP.
Lenders are likely to meet
on Friday to discuss JSW’s
revised offer, said sources.
Since the asset is outside of the
National Company Law
Tribunal, decision making is
likely to be quicker, they said.
It would not be the first
time, though, that the two
groups would be locking horns
over stressed assets.
In the case of Bhushan
Power & Steel, mandated by
the RBI for debt resolution
under the Insolvency and
Bankruptcy Code (IBC), JSW
Steel had revised its bid at the
last minute, which prompted
a rebid in the case. JSW Steel
had revised its bid from ~110
billion, submitted in
February, to ~180 billion ahead
of a meeting of committee of
creditors (CoC) to take a final
call on the bids. But Tata Steel
moved the National Company
Law Appellate Tribunal
(NCLAT), which asked the
CoC to decide on the existing
resolution plans. Accordingly,
Tata Steel was selected as the
highest qualified bidder. It
was not the first time that Tata
Steel had been selected so,
however. In end-June, lenders
formally communicated to
Tata Steel that it had been
selected. However, fresh sub-
missions from operational
creditors and Liberty House
stayed the voting on the reso-
lution plan. Later, the NCLAT
decided to allow revised bids,
but Tata Steel moved the
Supreme Court. The apex
court, however, refused to stay
the process.
More on business-standard.com
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8 ECONOMY & PUBLIC AFFAIRS
>
MUMBAI | FRIDAY, 31 AUGUST 2018 1

Rahul attacks note ban, Jaitley defends FinMin pitches

Congress president says PM Modi used demonetisation
to help crony capitalist friends
FM claims true impact of invalidating high-value
currency has increased tax base, collection
for better rating
ARCHIS MOHAN
New Delhi, 30 August
INDIVJAL DHASMANA
New Delhi, 30 August
from S&P
C F
ongress President Rahul Gandhi on inance Minister (FM) Arun Jaitley on ARUP ROYCHOUDHURY to-GDP ratio of India.
Thursday said the Reserve Bank of Thursday used tax numbers to counter New Delhi, 30 August Currently, the ratio stands at
India’s annual report has proven that Opposition criticism that demonetisa- around 68.5.
Prime Minister Narendra Modi’s demonetisa- tion had failed in its objective to curb black The Union finance ministry, In November last year,
tion decision was a “huge scam” and its objec- money only because almost all of the invali- on Thursday, met represen- S&P had ruled out any
tive was to rob from the common people of dated currency had come back to the Reserve tatives from global rating upgrade to India’s sovereign
India to benefit his crony capitalist friends. Bank of India (RBI). agency Standard & Poor’s rating through 2017, saying
Addressing a press conference at the He said the ban on ~500 and ~1,000, which (S&P) and pitched for a rating it wants to see more efforts
Congress headquarters, Rahul Gandhi said the government had announced on November upgrade, citing macroeco- to lower government debt
demonetisation was no error of judgement on 8, 2016, along with the goods and services tax nomic fundamentals, the to below 60 per cent of
the PM’s part. He said it was implemented (GST), rolled out on June 1 last year, had reforms carried out by the GDP and that it did not
“deliberately” to return the favours done to expanded the tax base. As a result, tax collec- government, and its commit- expect revenues to rise
him by his 15-20 crony capitalist friends, who tion had also increased. “This is a trend that ment to meet the fiscal deficit enough to meaningfully low-
have spent money for his marketing on televi- will continue this financial year (2018-19 or and current account deficit er the deficit over the medi-
sion channels. FY19) as well,” he said. (CAD) targets. um term.
“Prime Minister Modi should answer why On Wednesday, the RBI had said in its annu- This comes at a time when It maintained the lowest
he inflicted a deep wound like demonetisation al report that 99.3 per cent of the banned notes there is pressure on CAD investment grade rating of
when issues like unemployment and low gross were back in the system. Opposition leaders because of a depreciating ‘BBB’- with a stable outlook.
domestic product (GDP) rate remained,” Congress President Rahul Gandhi addresses a had questions that if this was true where did all Union Finance and Corporate Affairs Minister rupee and high global crude S&P has maintained that
Gandhi said. press conference at AICC headquarters in the black money, which the government had Arun Jaitley at the inauguration of the new oil prices, and on fiscal deficit rating on India for over 11
The Congress chief, who is scheduled to New Delhi on Thursday PHOTO: PTI claimed was held in cash, go. building of the Competition Commission of because of concerns over the years. Of the big three rating
leave for a pilgrimage to Kailash Mansarovar, The FM, on his Facebook page, also said India in New Delhi on Thursday PHOTO: PTI goods and services tax (GST), agencies, only Moody’s has
said the bunch of crony capitalists who are businesses to help big companies such as 1.8 million depositors have been identified for and non-tax revenue. been optimistic on India,
friends with the PM have run up huge loans Amazon and caused 2 per cent drop in GDP. inquiry to assess whether the amount deposit- cent and 9 per cent, respectively. These issues figured dur- Asia’s third-largest economy.
taken from banks. He said non-performing Rahul Gandhi said the Rafale fighter jet deal ed by them was in consonance with theirs. He said the number of new returns filed ing the discussion between It upgraded its rating in
assets (NPAs) under the United Progressive was also a scam to help one of Modi’s crony Many of them might face tax and penalties, he after demonetisation increased in the past two the finance ministry officials, November to ‘Baa3’ from
Alliance government stood at ~2.5 trillion and capitalist friends. The Congress also launched said. “Mere deposit of cash in a bank does not years by 8.5 million and 10.07 million, respec- led by Economic Affairs ‘Ba1’.
were “under control”, but have increased to a social media campaign of “Bhrashtachari lead to a presumption that it is tax-paid mon- tively. Secretary Subhash Garg, and New Delhi has argued that
~12 trillion under the Modi government. He Janata Party”, or corrupt BJP. The Youth ey,” Jaitley said. The I-T collections have increased from the representatives from S&P. the rating agencies metrics
said demonetisation was designed to help Congress also held a protest march in New He also said, “Was the invalidation of the 2013-14 figure of ~6.38 trillion to the FY18 figure “We have asked S&P for a on India ignores the macro-
crony capitalists who are burdened under Delhi on the issue of Rafale “scam”. non-deposited currency the only objective of of ~10.02 trillion, he said. rating upgrade citing macro- economic stability in the
NPAs by taking money from India’s farmers, Continuing with his attack on the govern- demonetisation? Certainly not.” He added that In the very first year since the GST roll-out, economic stability of the last four years, reforms such
women and youth. ment over the Rafale deal, the Congress presi- the larger purpose of the note ban was to move the number of registered assessees has country,” an official said. as the Insolvency and
Rahul Gandhi said “Modi’s friends” used dent said Finance Minister Arun Jaitley had India from a tax non-compliant society to a increased by 72.5 per cent. The original Officials explained to S&P Bankruptcy Code, Monetary
demonetisation to convert their black money not replied to three basic questions related to it compliant one. 6.61 million assessees has increased to that the debt-to-gross Policy Committee, GST, pru-
into white, and pointed to the example of the — why was the deal was awarded to an indus- “This necessarily involved the formalisa- 11.4 million. domestic product (GDP) dent fiscal policy and an envi-
Ahmedabad District Cooperative Bank, which trialist with no experience of aircraft manu- tion of the economy and a blow to black mon- “This is the positive impact of the demon- ratio is a long-term consid- ronment of high growth with
he alleged collected over ~7 billion of demone- facturing and with an NPA of ~450 billion at the ey,” Jaitley said. etisation,” Jaitley said. He added, “More for- eration and should not be an low inflation.
tised money. He said Bharatiya Janata Party cost public sector Hindustan Aeronautics and He reiterated that advance tax in the first malisation of the economy, more money in the immediate concern for a rat- But agencies S&P and
(BJP) chief Amit Shah was a board member at why did the price of each fighter jet increase quarter of FY19 has increased 44.1 per cent for system, higher tax revenue, higher expendi- ing upgrade. Fitch have said that India’s
the bank. He also said demonetisation failed to from ~5.2 billion to ~16 billion. personal income tax (I-T), and 17.4 per cent for ture, higher growth after the first two quarters.” International rating agen- debt-to-GDP ratio is much
achieve any of its objectives, destroyed mil- corporation tax. Growth in I-T collections in the cies have been raising a higher than similarly-rated
lions of jobs in the informal sector and small More on www.business-standard.com two years before demonetisation was 6.6 per More on www.business-standard.com red flag over the high debt- peers.
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10
>
MUMBAI | FRIDAY, 31 AUGUST 2018 1

Bezos, Buffett
bet on $250-bn
unclaimed
web market

Jeff Bezos, chief executive officer of Amazon (left) and Warren

Buffett, chairman and CEO of Berkshire Hathaway PHOTO:REUTERS

BLOOMBERG When Walmart announced

Bengaluru, 30 August the Flipkart deal earlier this
year, S&P Global Ratings

I
ndia’s long-neglected retail changed its outlook on the US
market is turning into one retailer to negative, saying that
of the world’s hottest Flipkart was poised to generate
thanks to Warren Buffett, Jeff losses in the next few years.
Bezos and a frenzy of billion- “The appeal of retail lies in
dollar dealmaking. the population of India, the
Walmart just wrapped up a aspirations of India, the con-
$16 billion agreement for con- sumption power of India,” said
trol of the country’s leading e- Kishore Biyani, the billionaire
commerce player, Flipkart chief executive of Mumbai-
Online Services, while Bezos’ based retail conglomerate
Amazon.com negotiates deals Future Group, which runs the
with a large supermarket chain 2,000-plus store Future Retail,
and an investment in a promi- including the country’s largest
nent retail conglomerate, departmental chain.
according to local media. This Biyani said his group’s
week, Buffett’s Berkshire online revenues are nearing
Hathaway agreed to acquire a $150 million. He and others
stake in the company behind predict that India’s retail indus-
digital payments leader Paytm. try will have a unique combi-
Why the sudden interest in nation of online and offline tie-
India? The new optimism is ups.
fueled by rising standards of Future Group is reported
living, increases in smart- to have had negotiations
phone usage and cheap data about a stake sale with
plans that are boosting internet Amazon as well as Alibaba
penetration across the nation. executives. Biyani refused to
Perhaps most important, India directly comment, simply say-
is the last big retail market still ing he too is looking to “crack
up for grabs, with an internet a deal like everybody else.”
economy projected to double Amazon declined to com-
to $250 billion by 2020. ment and Alibaba didn’t
“It’s a race for leadership,” respond to a request for com-
said Anil Kumar, the ment.
Bengaluru-based chief execu- India’s Reliance Industries
tive officer of researcher is also fine-tuning its own e-
RedSeer Consulting. “There’s commerce thrust by creating
far more action in India com- a hybrid online-offline retail
pared with stable markets like platform.
China and the US.” So far, retailers have only
Online sales grew 23 per scratched the surface by rop-
cent last year and are up 40 ing in high-income customers
percent so far in 2018, accord- in India’s large metropolitan
ing to RedSeer. The organised cities. Rural areas and small
retail market is under-pene- cities offer fresh opportunity.
trated, leading to tie- The retail battle for
ups between online India is now the Indian consumers
and offline players, world’s fastest will be on display
and driving growing major again in early
unprecedented lev- economy, and November during
els of investments, per capita the festival of
Kumar said. incomes have Diwali.
India’s vast retail been climbing Vijay Shekhar
industry has no par- steadily Sharma, founder
allel other than, per- and chief executive
haps, China. But unlike the officer of the Alibaba-backed
Chinese market, dominated by e-commerce company Paytm
Alibaba Group, India is rela- Mall, says he ultimately sees
tively open and largely uncon- wide-ranging impact from
quered, offering global players the billions pouring into the
vast opportunity to grow. industry. He predicts that
India is now the world’s small mom-and-pop shops
fastest growing major econo- will soon be armed with retail
my, and per capita incomes technology as well as cloud
have been climbing steadily. and payments products.
According to a Forrester Sharma is also the founder
Research report earlier this of One97 which runs the
month, the South Asian coun- Paytm digital payments app.
try is the world’s fastest grow- Berkshire Hathaway this
ing e-commerce market. week invested in One97,
Amazon and Flipkart have becoming the latest global
cornered about three-quarters player to bet that digital pay-
of the online Indian retail mar- ments will surge as India’s
ket, but other big players are increasingly affluent con-
getting aggressive. That’s sumers shop online.
meant heavily discounted “Indian retail will get dig-
offerings for consumers, itized at an unprecedented
although the substantial scale,” Sharma said. “Its every
investments have crimped nook and cranny will get
profitability. altered.”

Chinese ‘Da Vinci’ set

for art auction record
BLOOMBERG
30 August
An extremely rare, 11th-centu-
ry Chinese scroll could set an
auction price record for an
Asian artwork, when it goes on
the block at Christie’s
November Hong Kong sale.
Estimated in excess of
HK$400 million ($51 million),
the work is only one of two
known scrolls produced by
Song dynasty artist Su Shi, and
the first to ever appear at auc-
tion, Christie’s said. The other
resides in the National Palace
Museum in Taiwan. “This is
simply the best Chinese paint-
ing you could possibly get,” said
Jonathan Stone, co-chairman
of Christie’s Asian Art depart-
ment, who likened the piece’s
significance and rarity to that of
“Salvator Mundi” by Leonardo
Da Vinci. “In the purely mar-
ket sense, there is comparabil-
ity.” Su Shi, a household name
in China, was an 11th-century
scholar, statesman, poet, writer,
calligrapher and artist, whose
painting style has influenced
virtually every Chinese painter
ever since, according to Kim Yu,
Christie’s international senior
specialist of Chinese paintings.
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12 ISSUES AND INSIGHTS
>
MUMBAI | FRIDAY, 31 AUGUST 2018 1

The tourism time bomb Hordes Sparks Global Backlash’. The cri-
sis has reached epic proportions and as is
always the case a new term has been
coined — overtourism.
marketing is the need to balance the many
messages and the many target audiences.
Increased tourist arrivals is a big boon to
the local economy. But the local popula-
> CHINESE WHISPERS

Tourism has to be projected as a revenue earner and creator of
employment. And it has to be given a human face
exploring exotic destinations, both
within India and outside.
One remembers how Taj Hotels used
to be a lone warrior three decades ago try-
ing to build tourism into Goa. They even
had advertisements playing in movie the-
atres extolling the virtues of ‘Goa in the
rains’. Today, there are flight operators
who fly planeloads of tourists into Goa
early morning, only to take them back
the same night. While the tier III Indian is
having his high visiting Goa, the urban
AMBI M G PARAMESWARAN millennials are exploring new interna-
tional destinations, and trying to out-
Instagram/Facebook their peers. And all
ing the web for deals on trips.’ This
increased interest in travel is expected to
boost the annual number of interna-
tional tourist arrivals to roughly 1.6 bil-
lion by 2020, according to the UN. They
say that while a billion or two addition-
al international tourists represents a
great potential, they could also indicate
a massive headache. The article was
indeed prophetic.
The cover story of Time magazine
(August 6-13, 2008) titled ‘The Tourism
Trap’ points towards the travails of the
tourism sector. The article points out how
countries and cities are imposing restric-
The hurdles set up by global tourism
hotspots is great opportunity for Indian
tourism spots — those that have been
exploited and those waiting to be
opened up.
I for one thought three states have
stolen a march in developing tourism in
India: Kerala, Goa and Rajasthan. Hotel
operators in Kerala have pioneered new
types of tourism including ‘eco tourism’,
‘health tourism’ etc. I thought that
hotels in Kerala were cognizant of the
environmental challenges and adhered
to all the best practices. So it was with
much trepidation that I read Arundhati
Roy’s comments (The Week, September
2, 2018): Unbridled greed, the shocking
denuding of forest land for mining and
illegal development of resorts and
tion have their own challenges. Some of
Competitive ‘looks’
them directly benefit from the tourist
inflow, while many may see tourists as an
intrusion. Tourism marketing now has
many new tasks to perform.
The traditional messaging for
tourism was aimed at the traveller. It
pushed him to get out of his sofa and
pack a bag and explore. The second
typology of messaging was about treat-
ing tourists as welcome guests — ‘atithi
devo bhava’ as we say. The message was
aimed at those who were indulging in
scalping unsuspecting tourists. And After years of criticism, the Competition
those who were watching this happen. Commission of India (CCI) finally had its
I submit there will be other types of moment of redemption. While
tasks tourism marketing will now need inaugurating its new office, Finance
to perform. Tourism has to be projected Minister Arun Jaitley (pictured) said the
as a revenue earner and creator of CCI can now compete with its
counterparts from across the globe.

T
he Indian tourism industry is
witnessing a boom time. Reports
say that by 2033 airport traffic in
India will multiply five times to 1.6 bil-
lion, and that 55 new airports are need-
ed to meet these increased travel
demands. More and more millennials
are taking short and long breaks. While
Goa continues to be the all-time
favourite, Indian tourists are also
that may not be good news for the world.
In an article, ‘The Tourism Time
Bomb’, published in the Harvard
Business Review way back in April 2008
the authors Paul F Nunes and Mark
Spelman pointed to an impending glob-
al crisis. They said, ‘Indian call-centre
employees, Russian petrochemical engi-
neers, Chinese middle managers and
Brazilian sales persons are already scour-
tions on tourist arrivals. Barcelona has
put in restrictions on construction of new
tourist lodgings. The craze of the TV show
Game of Thrones has put little Croatia on
the global tourist map to the extent the old
town section of Dubrovnik has installed
cameras to implement the 8,000 tourists
per day rule. The Wall Street Journal in its
front page story on May 23, 2018, calls it
out with its headline ‘Anger Over Tourist
homes, illegal construction that has
blocked all natural drainage, the bla-
tant mismanagement of dams, have all
played a huge part in what is happening.
There is probably some truth in what
she is saying. While there are trendset-
ting hotel chains in Kerala, there could
be unscrupulous hotel operators who
are violating all environmental norms.
The bigger challenge facing tourism
employment. But it has to be given a
human face. Tourism marketing glob-
ally has to ensure that the tourists are
regulated and are taught how to behave.
What is needed is cultural acclimatisa-
tion. The time to defuse the bomb is now.
The author is a brand strategist, author and
founder, Brand-Building.com.
ambimgp@brand-building.com
Jaitley, while addressing the members of
the Commission at the inauguration
said, “CCI has acquired a far more
presentable premise and can now
compete with its counterparts in the
other parts of the world — at least in its
looks”. A much younger body compared
to many global competition watchdogs,
a common grouse against the CCI had
been that it is still finding its feet.

The road out of energy poverty

The ultimate cost of energy poverty is far greater than what it takes to provide continuous power to all through an
efficient and transparent ecosystem
VIVEK SHARMA
I
ndia is home to 18 per cent of the
world’s population. However, its
energy consumption is a meagre 6
per cent, with per capita consumption at
1,122 kWh mark — or a third of the world
average and the lowest among BRICS —
during fiscal 2017.
Almost a fifth of the population
lives in abject poverty, or below pover-
ty line, with no access to electricity.
Low demand and poor access to ‘ener-
gy’ — which includes electricity, cook-
ing fuel etc — have meant chronic
under-consumption.
Such ‘energy poverty’ has, apart from
its socio-economic impact, a bearing on
the environment, too, as it leads to
greater reliance on unclean fuels such
as wood, crop waste, dung, and biomass
to cook and heat homes. While such fuels
provide affordable energy access, in the
long run, they become more expensive.
Smoke from wood and biomass stoves
is hazardous and causes respiratory ill-
nesses. Every year, thousands of women
and children fall ill because of it. In oth-
er words, the indigent consumer is forced
to cough up a hefty healthcare price.
Unclean fuels are also inefficient
because they don’t have scalability so
cannot be utilised to energise business-
es. In other words, they cannot create
livelihood or fulfill basic human neces-
sities such as affordable healthcare.
The ill-effects of an unclean fuel such
as kerosene, for which the government
initially offered subsidy, is well-docu-
mented. For want of access to grid-based
electricity, poor rural households, espe-
cially in rural areas, continued using it to
light up their homes, which drove up
consumption and health problems.
However, between fiscals 2011 and
2017, household electrification increased
substantially and kerosene consump-
tion fell, which was also driven by cen-
tral government policies to reduce
kerosene subsidy expenditure.
Over the past many years, the Centre
has been decreasing quotas of sub-
sidised kerosene that it allocates for
states to distribute. The sharpest reduc-
tion was seen in fiscal 2017, when allo-
cation nationally was reduced by over 20
per cent over fiscal 2016.
The primary motivation for lower allo-
cation was to control the subsidy expen-
diture borne of the central government.
Other reasons include large losses due to
black marketing, which prevents the
intended poor beneficiaries from access-
ing subsidised kerosene and thus decreas-
es the efficiency of subsidy targeting.
And since August 2016, the govern-
ment has progressively hiked the price
of kerosene every fortnight by 25 paise
per litre. This, and the oil price crash
after 2013 have created significant sav-
ings on the government’s subsidy bill.
To its credit, the government has
actively targeted sustainable energy for
all initiatives — including through
‘LPG for all’ and ‘power for all’, which
have led to a reduction in the use of
unclean fuels.
Under the Pradhan Mantri Ujjwala
Yojana, the government aims to provide
five crore subsidised LPG connections to
women of poor households (below
poverty line) in the next three years.
Recently, the government launched
the Pradhan Mantri Sahaj Bijli Har Ghar
Yojana, or Saubhagya, scheme to pro-
vide electricity connections to over 35
million families in rural and urban
areas. Saubhagya will fund the cost of
last-mile connectivity to willing house-
holds in order to achieve the goal of
lighting up every household. To this
end significant progress has been made
with 33 per cent that is, 11 million
households been connected.
The problem is, while Saubhagya
aims to provide electricity connections,
the goal to provide 24 hours reliable
supply under 24x7 power for all pro-
gramme continues to be a challenge.
Much of the blame for the situation
rests with tangled political wires. This is
ILLUSTRATION BY BINAY SINHA
a sad mindset, indeed. Removing ener-
gy poverty should be a bipartisan goal at
all times because of its criticality to
human development.
The key to providing adequate ener-
gy access to the poor lies in the imple-
mentation of Universal Service
Obligation (USO) and direct benefit
transfer (DBT) for various energy
schemes including 24x7 power for all.
This can eventually replace the USO for
LPG and all other energy schemes.
The logistical challenges to provid-
ing continuous LPG, including
replacement cylinders, in the back of
beyond is more expensive and diffi-
cult than connecting households that
already have with 24x7 electricity.
Hopefully, and eventually, appliances
such as electric cooker and stove need
to replace conventional ones fired by
kerosene, wood or LPG.
A USO corpus to ensure reliable,
extended supply of energy or electricity
can be carved out from the annual rev-
enues of the electricity distribution enti-
ties and, as was done in the telecom and
banking sectors, an explicit fund to meet
such an obligation needs to be created.
Such a corpus can be jointly funded
from state and central Budgets. In fact,
the central Budget on LPG can be sub-
sumed with the revenue subsidy required
for the electricity sector. Later, the
amount of cross-subsidy charged to high-
end consumers (industrial, commercial)
can also be included in this corpus.
In addition, the introduction of DBT
in power distribution the way it has been
done for LPG, along with the USO cor-
pus, can ensure effective subsidy deliv-
ery, eliminate discrepancies in subsidy
accounting, and delays in disbursals,
and also help in substantial savings in
the total amount of subsidy given.
The challenge to overcome here is
that unlike in the case of LPG, where
the central government is involved, sub-
sidy disbursal for electricity supply is
the remit of state governments, which
may result in varying approaches.
But the scheme can bring about
seminal improvement in the duration
and stability of electricity supply in the
hinterland, which can set off a virtu-
ous cycle by providing impetus to eco-
nomic activity and development.
Apart from making fiscal sense, that
would be crucial to ensuring sustainabili-
ty of energy for all, and to structurally
reduce subsidy requirements of the future.
The ultimate cost of energy poverty
is far greater than what it takes to pro-
vide continuous power to all through
an efficient and transparent ecosystem.
Bringing that drastically down is a
mandate inherent in the social contract.
The author is senior director, Crisil
Infrastructure Advisory
Hoping for succour
A piece of black cloth was found tied to a
gate at the entrance to 10 Circular Road,
the official residence of Rashtriya Janata
Dal chief Lalu Prasad. Many read that as a
contraption aimed to ward off the evil eye,
given the tough times that the residents of
the bungalow are going through. Lalu
Prasad has been convicted in four fodder
scam cases. His wife Rabri Devi and
younger son Tejashwi are on the radar of
the Enforcement Directorate in a case
pertaining to an alleged railway hotels-
for-land deal. Tejashwi and Rabri are
slated to appear before the Patiala House
Court on Friday. Next month, a Delhi court
will hear arguments on charges against
Lalu's eldest daughter Misa Bharti and her
husband Shailesh Kumar in an alleged
money laundering case.
Eventful September, October
Much street action in terms of political
protests and events is in the offing in
the months of September and October.
Bharatiya Janata Party will organise
poetry evenings at 4,000 places in
memory of former prime minister Atal
Bihari Vajpayee on September 16, which
will mark a month of his death. On
September 17, BJP workers will celebrate
Prime Minister Narendra Modi's
birthday. The celebrations will continue
till the birth anniversary of Jana Sangh
founder Deen Dayal Upadhyay on
September 25. The Communist Party of
India (Marxist), particularly its affiliated
trade unions and farmer union, plans to
hold a massive rally in Delhi on
September 5. Several Congress state
units will launch agitations focused on
the Rafale fighter jet issue. Several other
womens' and farmers' groups also plan
to hold protests during the month of
September. Congress chief Rahul Gandhi
would be on a pilgrimage to Kailash
Mansarovar in the first half of
September, and his party plans to put
out video footage and photographs
certifying their party president's
devotion for Lord Shiva.

> LETTERS
DECODED
But hasn’t the RBI opposed private
Why is the RBI interested in digital currency but digital currencies?
wary of bitcoins? Mayank Jain finds out. Even as it explores its own digital cur- Freedom first er is not resisted with all the strength. One situation when this is necessary is
rency, the RBI has opposed virtual cur- G David Milton Maruthancode the time the incumbent is on the thresh-

From virtual to real rencies like bitcoins for a long time. In

Why is the RBI interested in
issuing its own digital currency?
The Reserve Bank of India (RBI) first
proposed the idea of a central bank-
backed digital currency in April this year
on the sidelines of the monetary policy
meeting. The banking regulator said that
with the advances in the payments
industry and digital tokens, central
banks around the world are discussing
the possibility of introducing digital cur-
rency with legal backing. To this end,
the regulator set up an interdisciplinary
group to study and offer guidance. The
group was supposed to have submitted
its report by June-end 2018.
What is the benefit of a fiat digital
currency over paper currency?
In its policy advisories, the RBI has stat-
ed that virtual currencies backed by
central banks could potentially offer
long term economic benefits. A key ben-
efit is the savings on the cost of produc-
ing and handling paper and metal cur-
rency. In its annual report, the regulator
said that the emergence of private digi-
tal tokens had changed the landscape of
digital payments.
What is the progress on this
front? Who is in-charge of the
supporting research?
It is not known if the report of the
group constituted by the central bank
was submitted on time or not.
However, in its recently released annu-
al report, the banking regulator said it
has set up a group to study the feasi-
bility of a fiat digital currency and pro-
vide guidance to the bank.
Apart from the interdisciplinary
group, the bank also formed a new unit
to keep track of technologies like
blockchain, cryptocurrency and artifi-
cial intelligence. Reports indicate that a
chief general manager has already been
identified to lead the group and provide
policy recommendations to the RBI.
The Institute for Development and
Research in Banking Technology, an
RBI arm, is also said to be preparing a
model blockchain for trials. The insti-
tute takes care of the central banks’
technology research needs and comes
up with papers and policy guidance
on emerging technologies.
What are the apprehensions?
There are fears in the industry about the
possibility of fraud and theft of purely
digital money. India has witnessed many
debit/credit card frauds and theft of
money over internet payment networks
in recent years. In such an environment,
with low digital literacy and lack of con-
sumer awareness, the central bank has a
mammoth task ahead of itself. The pos-
sibility of migration of crypto exchange
houses to dark pools/cash and to off-
shore locations, thus raising concerns
about money laundering and financing
of terrorism, requires close watch, the
RBI has acknowledged.
April, the bank ordered all banks to stop
business with entities that facilitate vir-
tual currencies. However, the bank took
cognisance of the fact that trade has
now circumvented the banking system
and moved to peer-to-peer networks.
The bank has held the position that
cryptocurrencies promote financing of
illegal activities, money laundering and
speculation in the market.
Is India ready for a government-
backed digital currency?
For a digital currency to be popular, inter-
net penetration as well as digital literacy
need to be greatly improved, say experts.
At current internet penetration levels,
any attempt to issue a digital currency
would remain a pipe dream or would
end up being another speculation instru-
ment for savvy urban investors.
What sort of regulation guides
this domain?
The RBI is empowered to issue, print
and distribute as well as manage both
paper notes and coins. However, the
Indian Coinage Act clarifies that the
coins can’t be electronic in nature. The
RBI Act has no provision for electronic
currency issuance either.
Is there a model or international
precedent that the RBI can follow?
At the moment, central banks across
developed countries are evaluating the
potential of issuing their own digital cur-
rency, but there is no ready model to go
by. The Bank of England was among the
first to start a discussion regarding this
while the European Union recently
backed the idea even as it denounced
bitcoins and private virtual currencies.
The central bank of Sweden is said to be
the closest to implementing it while
Uruguay has been testing digital
Uruguayan pesos since November 2017.
Some people, especially the right-wing,
thanks to their hostility for the progres-
sive, label Maoists as terrorists and want
to wipe them off the face of the earth. It
does not occur to them that Maoists are
not born Maoists, but are made Maoists
by the unjust social and economic order
with violence against the weak built into
it. Call them rebels with a cause, left-wing
extremists if you want, but don't com-
pare them to right-wing extremists, for
what they represent bear no comparison.
For the emergence of Maoist-mukt
Bharat, the causes that produce Maoists
need to be addressed first. Rather than
going after intellectuals and activists for
championing the cause of human rights
and welfare of the lower orders, the state
should admit the structural violence and
the inhumanity of keeping the country's
weak and vulnerable people in sub-human
and vulnerable conditions. For political
freedom to be meaningful, there should be
some semblance of economic and social
freedom for all the citizens.
The time has come for those who cher-
ish democracy and freedom to assert that
the hard-won space of citizens to dissent
and protest and work for a better world
without glaring inequalities cannot be
ceded to the state. It goes without saying
that any political system refusing to allow
dissent becomes a tyranny. As Justice
Chandrachud has put it, dissent is the
safety valve of democracy. The day is not
far off when as a nation we will slide into
tyranny, if the naked misuse of state pow-
Orchestrated crackdown
The Maharashtra police’s move to take
into custody some human rights activists
has virtually failed, with the Supreme
Court observing that “dissent is the safe-
ty valve of democracy” and directing
that these activists be kept under house
arrest. Hitting a serious blow to the
police as well as the Maharashtra gov-
ernment, the SC rightly questioned the
arrests of the activists after a period of
nine months since the Bhima-Koregaon
incident. Without any tangible proof,
the arrests raise suspicion about the ulte-
rior motive of law enforcing agencies
and the government.
Governments all over the world dislike
critics and dissidents because such dis-
senters bring to light many misdeeds of
those who control and misuse power. The
brazen attempt by the government to
imprison its critics reflects a fascist mind-
set that disregards civil rights. This is clear-
ly part of an orchestrated crackdown on
political dissent.
S K Khosla Chandigarh
When to let go
In his column “Just let go and grow roses”
(August 30) Pratip Kar makes an inter-
esting observation that people in power
or control should let go when necessary.
> HAMBONE
old of entering the level of incompetence.
This would be the case when too many
changes in business environment or
volatile turmoil within the organisation
may call for a different set of competence
the individual may not possess. Better to
hand over then.
Another ‘when’ moment is: The organ-
isation has a strong bench strength and
the potential successor (and those down
the hierarchy) is in a position to provide a
new direction and quantum leap to the
organisation. The third scenario is when
the incumbent is on the verge of becom-
ing a workaholic neglecting his/her fam-
ily and joys of life altogether. This arises
from the narcissistic notion that he/she is
indispensable to the organisation.
Last, one may employ “let go” as a
temporary step, a tactical retreat-get-
ting away from the scene because the
team or the owners of business do not
see eye to eye with him/her though
his/her strategy is what the company
needs. Consequent downfall of the set-
up would make his recall inevitable and
position more respectable.
Y G Chouksey Pune
Letters can be mailed, faxed or e-mailed to:
The Editor, Business Standard
Nehru House, 4 Bahadur Shah Zafar Marg
New Delhi 110 002
Fax: (011) 23720201 · E-mail: letters@bsmail.in
All letters must have a postal address and telephone
number
BY MIKE FLANAGAN
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official

>
OPINION 13
STAY INFORMED THROUGH THE DAY @ WWW.BUSINESS-STANDARD.COM.

Volume XXIII Number 15 ILLUSTRATION BY BINAY SINHA

MUMBAI | FRIDAY, 31 AUGUST 2018

The final word

RBI Annual Report seals the verdict on demonetisation

T
he Reserve Bank of India (RBI)’s Annual Report, released on
Wednesday, provides, in some sense, the final word on the govern-
ment’s demonetisation exercise, which began on November 8, 2016. as bail. He said he was puzzled by this as well and
Multiple reasons were given for the decision to withdraw 86 per cent wondered why this was the case. I said it was because
the justice system has collapsed in India. The lower
of India’s currency stock overnight — including the destruction of stocks of black
judiciary will not resist the State and rubber-stamp
money hoarded in cash, the possibility of windfall gains, the digitalisation of anything that was presented to it. Not that the
India’s payments architecture, and the moving of savings to financial assets. The Supreme Court was some guarantor of rights, and it
RBI now says that 99.3 per cent of demonetised currency notes were exchanged was also riven internally, but it was seen as the last
at banks in the months following the announcement by Prime Minister Narendra resort.
Modi. The RBI is to be complimented for being extra careful in its release of the He asked if the court's observations in this case,
particularly dissent being the safety valve of democ-
final numbers, however embarrassing they may turn out to be politically for the
racy’s pressure cooker, were reassuring. I said I found

When the State

current administration. Finance Minister Arun Jaitley made a valid point on them anodyne and banal. The present chief justice
Thursday that demonetisation led to formalisation of economy and more tax col- was especially fond of sending down such pro-
lections. But from a broad policy perspective, it is now abundantly clear that the nouncements that didn’t really affect anything.
aims of demonetisation do not seem to have been met. He asked what I meant by that. I said that it was
almost impossible to express dissent in India pub-

expresses outrage
The most optimistic view depended on two assumptions: First, that there
licly. Police permission had to be sought (and was
were substantial stocks of money hidden from the tax authorities that were held
never given) for any public demonstration that was
in cash; and second, that this would not be returned, or returned at a higher tax seen as troublesome. I gave an example. We wanted
rate. If returned at a higher tax rate, the government would receive the taxes; to have a discussion on the Rohingya issue, with
if not, it would count as a windfall gain on the RBI’s balance sheet, which it could Ram Guha as the speaker, at the Bangalore Town
then transfer to the government. The return of 99.3 per cent of the demonetised Hall a few months ago. It was denied.
notes has blown a hole in this assessment. Other possible gains also seem to
The world has been conned into believing that India has the rule of On the problem of expressing dissent, I also
have dissipated. For example, there is no sign that counterfeiters have been law. Of course, it doesn’t explained, to his horror, that Indians are jailed for
drawing cartoons, and could spend months behind
unable to adapt to the new notes issued. Also, since the ~500 and ~1,000 notes bars for forwarding something on Facebook. This
were replaced by ~2,000 notes, it is not clear why the ability to conduct high-

I
had about four minutes on air Wednesday night
value transactions in cash — or store large sums in cash — has been significantly on the BBC, discussing the arrests of five activists
impaired by the act of demonetisation alone. in India. But the 15 minutes or so before that, dis-
What is unfortunate, however, is that the act of demonetisation appears to have cussing the story over the telephone with the pro-
ducer in London, were more interesting. He was col-
had a problematic effect on the pattern of household savings. The RBI’s data on lecting the background of the case and seemed
household savings over the past years makes this quite clear. While household sav- astonished that such a thing
ings, which includes the savings of small unregistered enterprises that were hit could happen. This is because
hard by demonetisation, is at a multi-year high of over 11 per cent of gross nation- the world, and even those in the
al disposable income, its composition will give analysts pause. In fact, households global media, assume that India
are holding far more of their savings in cash than they did in the year just prior is a normal, functioning democ-
racy with the rule of law. There is
to demonetisation, 2015-16. While the proportion in stocks may be higher — a no such thing of course, as this
reflection perhaps of the buoyant stock markets — the proportion in bank recent story so nicely illustrates.
deposits has seen a sharp decline. In other words, the attempt to financialise sav- The first thing that takes peo-
ings has, in fact, been set back. In any case, the ratio of cash to gross domestic prod- ple aback when they try to under-
uct has reached levels comparable to the period before demonetisation. It appears stand the case is the background
that whatever behavioural changes demonetisation brought were not in line with of these “enemies of the State”.
They include a 77-year-old-poet
REPLY TO ALL
the government’s expectation. It is to be hoped that the appropriate lessons will and a lawyer in her 50s who takes AAKAR PATEL
be learned for the drafting of future policy, and errors such as demonetisation, up the cases of the poor and the
which clearly dented India’s growth story, will henceforth be avoided. marginalised. They also include people whom the
State has wronged in the past. They include an
activist and writer who has been previously accused
domly picked up and jailed here without being told
why, I said, to his puzzlement and, perhaps, disbelief.
The allegation in this particular case appeared to
be their instigating violence at a meeting held late
last year; five other civil society members had been
arrested in the same case in June. However, three of
the five arrested on Tuesday were
not at the meeting. Of the two who
were present, one did not speak.
The one who did speak, said noth-
ing exceptionable. Indeed, two
retired judges were the organisers
of the event.
So then what about the news of
an attempted assassination of the
prime minister, he asked. I said
that it seemed to be a kite flown by
the media because the police had
not presented this particular piece
of evidence in court in that earlier
case. He asked: Does it happen
often that such inflammatory “evidence” is dis-
cussed in the media and not denied by the govern-
ment? All the time, I said. Was the State held to
regularly happened.
I did not tell him the following but I think it will
interest the reader. On Tuesday, in Delhi, I met Umar
Khalid (the young man from Jawaharlal Nehru
University who was attacked earlier this month by
two men with a firearm). I asked him if he had
received police protection. To my astonishment and
horror, he said he had not. He had been asking for it
repeatedly. This is a man whose attackers have con-
fessed of their own volition, to hating and wanting to
bring harm to Khalid; “giving an Independence Day
gift to the nation” is how the attackers put it.
What better illustration can there be of the fact
that dissent is not tolerated in India and violent
opposition to it is encouraged?
The last thing that my interlocutor wanted to
know was about the media. I said to him that India’s
media, particularly the television media, could not
be relied upon to be independent. The government
is one of the largest advertisers in South Asia, with
a budget of about 150 million pounds, and its dis-
tribution of the largesse is quite discretionary. One
of India’s largest newspapers — Rajasthan Patrika
— went to court after the state government dis-

Need for introspection of being a communications chief for a terror group

Arrests of civil rights activists have dented the State’s credibility
— an allegation that later proved to be false — and
another activist and writer who was accused previ-
ously of being the treasurer of a terror group — again,
account for this? Never, I said, and indeed, name-
calling and demonisation of individuals and groups
was the primary method that one generated public
continued advertising in it because of what it was
publishing. It was a pleasure for me, therefore, to
speak to the BBC.
hatred against them. The media uses terms such as This then is the background to the recent outrage

I
t took the Supreme Court’s intervention on Wednesday to finally bring
some semblance of order after the surprise arrests of five well-known
civil rights activists under the draconian Unlawful Activities Prevention
Act (UAPA) by the Pune police. In its interim ruling, the court directed
the Maharashtra government to file a response by September 5. Till that time,
the court allowed only house arrests of the activists. In a stinging criticism
an allegation that was proved to be false.
So what was the present case against them, the
producer asked. I said we did not know because this
had not been made clear. How could that be possi-
ble, he wanted to know. Didn’t the police have an
obligation towards the accused? People can be ran-
“terrorist”, “separatist”, “Maoist” etc. quite casually
and these days even “secularist” has joined this cat-
egory as a term of despise.
Our conversation then turned to the Supreme
Court. I said it should not have required the highest
court of the land to intervene in a matter as routine
by the State. It is not abnormal, and it is, in fact,
routine. This is exactly how dysfunctional India is.
The outside world, taken in by our constant insis-
tence that we are the “world’s largest democracy”
etc., has been conned into believing that we are a
normal rule-of-law State. Of course, we are not.

The return to humanness

of the manner in which the raids were conducted and arrests made, Justice
D Y Chandrachud, part of Chief Justice Dipak Mishra-led Bench, told the
Centre’s counsel that “dissent is the safety valve of democracy… if it is not
allowed, the pressure cooker will burst”. That statement itself should prompt

I
the government and the police to do some serious introspection on the way t is always fascinating to see how seemingly
disparate ideas intersect to create an entirely
they moved in the case.
different lens to look at innovation. The ideas
There are many unanswered questions about the arrests. It was not clear even may not be exactly new, but as it always tends to
till Wednesday evening what the accusations were. It was initially reported happen, it takes time for anything new to chal-
that the five were accused of stoking violence in Bhima-Koregaon on January lenge the accepted wisdom and emerge out into the
1. However, as the hours elapsed, all kinds of other accusations (including the mainstream.
charge of a conspiracy to kill the prime minister, which seems to have been based So it is with Richard Thaler, the professor from
University of Chicago and Nobel Prize winner for his
on a forged letter) came to light. The arguments made in court by government
work on Behavioural Economics in 2017. Most people
lawyers had little to do with Bhima-Koregaon, the ostensible reason for the raids now associate him for his work
and arrests. In any case, Bhima-Koregaon saw group violence; so how does it on Nudge Theory, which uses
attract the provisions of the UAPA? The court also asked a relevant question: Why positive reinforcement and indi-
now after nine months? One of the five accused is a lawyer who has been pro- rect suggestions as ways to influ-
viding legal aid to people from disadvantaged groups. So was her arrest a way ence the behaviour and decision
making of groups or individuals.
to prevent legal help to them and to discourage other lawyers?
For me though, Thaler's attack
Stepping away from the specifics of this case, the whole exercise reflects on the concept of the rational
poorly on the way the State treats its citizens. One of the people arrested had man is perhaps fundamental. For
been in jail earlier for five years, but was exonerated on all charges. Some of the decades, mainstream econo-
people raided or arrested are in their 70s and 80s, what fear is there that they mists have believed in the con-
cept of rationality — and that rea-
can wage war against the State? For these and other reasons, police credibili-
ty is low. Arrests have to be done with extra care especially since the cases
son and logic is core to economic STRATEGIC INTENT
decisions. This in turn prompted
involve a draconian law under which bail will be all but impossible. But the MBA schools around the world to
INDRAJIT GUPTA
police came with documents in Marathi showing slipshod work that a court spawn quant jocks. And some-
should look askance at. There are other questions, too. While people may be where along the way, we forgot how to engage with real
sympathisers of Maoists, unless they are actually doing something in terms of human beings. Thaler's clarion call to rediscover real
violence, financing violence, etc, there is no call for arrests. The Supreme human behaviour — the role of judgement, belief,
perceptions and emotions — did not come a day too
Court itself had said in the Binayak Sen case that membership of a banned
late.
organisation was not in itself a crime. Nobody is above the law, but the police For the past many decades, the dehumanisation
carry the enormous burden of proof, having made serious accusations against of management as a practice has been accelerated by
them. Unless proven, it will only confirm suspicions that the law has been bent concepts such as employee bell curves, an ever
with the sole purpose of targeting dissent. Finally, the lack of action against increasing battery of psychographic tests, quarterly
lynchers and other vigilantes identified with the ruling establishment stands reporting of results, et al. The assumption is that
measurement will help make things more efficient
in sharp contrast. Everyone has to be equal under the law. If they are not, then — and solve the productivity problem. Firms churn
it is the State that has to answer. out reams of data today measuring all kinds of
things. And HR departments — who are meant to
focus on getting the best out of their people — have
joined this measurement party.
There's every reason to believe that we've gone
too far down this road. And the time for correction
is here. Especially at a time when bruising competi-
tion is eroding margins and resulting in zero-sum
games, firms are now desperate to look for new
sources of demand and growth. Merely running your
firm more efficiently will no longer cut ice.
Another facet of this dehumanisation is the
reliance on the old binary sys-
tem of thinkers and doers, where
a few people at the top do all the
thinking, and the rest are meant
to focus on execution. This man-
agement philosophy may be out-
dated, but you'd be surprised to
see just how many firms still
cling on to it. This is why Blue
Ocean Shift, a worthy sequel to
the 2005 business best seller
Blue Ocean Strategy, is particu-
larly noteworthy.
The reason why the core mes-
sage of Blue Ocean Strategy res-
onated so well with readers
around the world is simple. Authors W Chan Kim
and Renee Mauborgne advocated that firms need-
ed to move out of brutally competitive markets —
termed as red oceans — towards the creation of
new, uncontested market spaces — blue oceans.
But the reality is that it takes time for simple yet
powerful ideas to gain wings. Any strategist worth his
salt fully understands the import behind Blue Ocean
Strategy thinking. But making the shift inside the
firm is an entirely different challenge altogether.
Why? Part of the reason is that firms that grew up in
an era of competitive jousting revel in grabbing mar-
ket share from each other. Finding new market
spaces requires creative imagination and a disci-
plined and collaborative approach to innovation
that most firms lack.
Making the shift from competing to creation is
often not easy. There are many ways the old legacy
mindsets hold back growth. One is a deep seated
culture of telling. Instead of asking the right ques-
tions, managers lapse into telling mode and rarely
create the space for their teams to do their own prob-
lem solving. Look around the corporate world today
and you'll see another tell-tale sign: People are
caught in a constant whirlwind of activity. Busyness
has almost become a disease in this race for pro-
ductivity. At a time when employees need more cre-
ative confidence to innovate and find new ways of
doing things, this treadmill like atmosphere runs
completely counter to the age-old wisdom of doing
well-chosen things — and doing them well.
Blue Ocean Shift calls for a return to humanness.
Old carrot and stick models, functional silos and
constant inter-departmental infighting are mani-
festations of an old organisational order that is well
past its sell-by date. Unless people are feeling ener-
gised and creative, executing a Blue Ocean strategy
will remain an uphill struggle.
And finally, there's one more important dimen-
sion: Customer centricity is a lodestar for most firms.
Blue Ocean Shift argues that learning from non-cus-
tomers is perhaps strategically more critical in open-
ing up new vectors of growth. And that isn't about
mechanically doing focus groups and depth inter-
views and outsourcing insights to a research agency.
The accent needs to be on more authentic and real
interactions that help you immerse yourself in their
world, experience what they're going through — and
get a first — hand sense of why they don’t do busi-
ness with you. After all, the non-customer, such as
your employee, is a real human being. Just how well
do you know them?
The author is co-founder at Founding Fuel

Central Asia’s cultural crossroads

BOOK REVIEW
SHYAM SARAN
This book conjures up a magical vision of
Central Asia, where even in the early
years of the 20th century, frontiers had
not yet congealed into boundaries and
peoples of the borderlands sustained a
unique crossroads culture, formed over
several millennia. This was a culture
deeply influenced by the towering
majesty of the mighty Kunlun,
Karakoram and Himalayan ranges,
through whose treacherous passes
ancient caravan routes threaded their
way, linking fabled cities and oasis
towns. It was also steeped in sensibilities,
formed over millennia, as varied ethnici-
ties, languages, customs and traditions
encountered each other creating a gentle
cosmopolitanism that thrived on mutual
respect.
The great merchant families of the
era established caravan trade networks
covering vast distances. The Radhu fami-
ly had branches in Yarkand in Xinjiang,
Leh in Kashmir, Lhasa in Tibet and
Kalimpong in India’s East. The book has
a detailed and fascinating account of
Lokchak, one of the more important car-
avans linking Leh with Lhasa, which was
not just for trade but, more importantly,
for carrying the biennial tribute from the
Ladakh royalty to the Dalai Lama in
Lhasa. Although this caravan was invest-
ed with both temporal and religious sym-
bolism, its uniqueness lay in the privi-
leged mission being entrusted to a
Ladakhi Muslim trading family. And the
story also testifies to Leh’s importance at
the crossroads of the Xinjiang and Tibet
caravan routes.
One should not miss reading the sec-
tion on Radhu’s travel over the Xinjiang-
Gilgit-Baltistan route and his encounters
with the British Consul-General, Eric
Shipton, in Kashgar and his stay with the
Emir of Hunza across the border. Eric became good friends. They later recon-
Shipton became well-known as a moun- nected in Kalimpong and worked togeth-
taineer and adventurer in his own right. er for some time for the Tibetan cause.
The book also contains an absorbing Tibetan Caravans is important
account of Kalimpong of the early nine- because it provides a ringside view of
teen fifties, when it became a colourful events leading up to the Chinese occupa-
melting pot of peoples from across the tion of Tibet in 1950 and the subsequent
Himalayan world; there were rich developments culminating in Dalai
traders, aristocratic exiles Lama’s escape to and exile
from Chinese-occupied Radhu describes in India in 1959. Radhu
Tibet, secret agents from how the Tibetan describes how the Tibetan
China, the US and UK, and ruling elite in Lhasa ruling elite in Lhasa was
adventures and explorers was completely out completely out of touch
from distant parts of the of touch with the with the significant politi-
world. It is from here that the significant political cal changes taking place in
Gyalo Thondup, the elder changes taking both China and India and
brother of His Holiness the place in both China what they meant for Tibet’s
Dalai Lama, orchestrated the and India own future. When Chinese
Khampa rebellion against forces moved into Tibet,
Chinese occupation of Tibet, with help the reaction was one of confusion and
from CIA. Gyalo Thondup’s own fasci- perplexity, as if this was a temporary
nating story has been put together by phenomenon that would soon dissipate.
Anne Thurston in the book The Noodle The author has harsh words for India,
Maker of Kalimpong. Radhu’s account which appeared to have acquiesced in
overlaps with Gyalo Thondup’s. The two China’s occupation of Tibet quite readily,
met in Nanjing, China’s wartime capital, pursuing an illusory Asian solidarity
just before the Communist takeover, and with China rather than appreciating the
danger to India that the loss of a buffer in
Tibet would entail. The then Indian
ambassador to Beijing, K M Pannikar,
comes in for sharp criticism for display-
ing a gullibility that patent Chinese hos-
tility failed to overcome. Nehru is por-
trayed as a leader who shared Pannikar’s
overly optimistic evaluation of Chinese
intent, but redeemed himself some-
what, by readily offering sanctuary to
the Dalai Lama and Tibetan exiles after
the Tibet revolt of 1959. Radhu was also
bitter at becoming a target of Indian
intelligence for several years, partly
because of his relations with a cousin
who had joined the Pakistan Foreign
Service and partly because of his associ-
ation with Gyalo Thondup whose work
with the CIA had become fairly well
known in subsequent years.
The book has a brief Foreword by His
Holiness, the Dalai Lama and an interest-
ing Preface by Marco Patties, a well-
known Tibetologist whose book, Peaks
and Lamas, is still widely read. Siddiq
Wahid, who has penned an excellent
Introduction, has rendered a great serv-
ice in bringing out this new edition of his
father’s autobiography. We have a rare
and authentic account not only of a way
of living which has passed into oblivion,
but also a historical narrative that pro-
vides an eye-witness account of the
wrenching change that was imposed
upon a people who had freely roamed
the mountains, valleys and grasslands of
the vast Central Asian realm for millen-
nia and evolved a culture full of grace
and vitality that placed high value on
hospitality to the stranger and help and
succour to fellow travellers on the cara-
van routes.
As Mr Wahid has so aptly observed,
“Stories that allude to and illustrate the
symbiotic relationship developed from
generations of accumulated insights by
societies who have learned how to hear
each other out, agree and even do battle
and yet remain hospitable to each other.
They are precious intimate histories.”
This one certainly is.
(The reviewer is a former Foreign Secretary and
a Senior Fellow, CPR)
TIBETAN CARAVANS
Journeys from Leh to Lhasa
Abdul Wahid Radhu
Speaking Tiger
304 pages
~450
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The Smart 1QUICK TAKE: ALUMINIUM ON A ROLL

Investor
TSI P15
Aluminium prices hit the highest in almost two ANALYSTS
months on Thursday on the London Metal
Exchange. Analysts say the uptrend is likely to SELECTIVE ON
MUMBAI |
FRIDAY, 31 AUGUST 2018
continue in the medium term on strong ROAD SECTOR
buying, amid growing demand and falling
inventory levels STOCKS
WWW.SMARTINVESTOR.IN.FOR INFORMED DECISION MAKING <

IPOs hit a results roadblock Asian Paints regaining its mojo

THE COMPASS

Temporary pause in new issuances as companies rush to update their quarterly numbers
Rural demand revival, new capacities should drive volumes
SAMIE MODAK Investmentbankerssaythey IPOS THIS FISCAL YEAR
Mumbai,30August canseeabunchofIPOsafterthe Amt raised SHREEPAD S AUTE to benefit.
second week of September if (~bn) Issuers New capacities at its

T
he initial public offering
(IPO) market has come to
temporary a standstill
despite improvement in market
liquidity and buoyancy in equi-
ties.Investmentbankingsources
said a rule pertaining to disclo-
sure of quarterly numbers has
put several IPOs on hold.
According to the regulatory
framework, a company cannot
launch an IPO if the quarterly
resultsdisclosedintheofferdoc-
ument are more than two quar-
ters old.
Sourcessaidmostcompanies
that are sitting on regulatory
approvalshadfiledtheirofferdoc-
ument with the Securities and
Exchange Board of India (Sebi)
based on their December 2017
numbers. Companies that were
unable to hit the market by
August 10, will have to wait for at
leastsixtoeightweeksbeforethey
cantapthemarket,saidaninvest-
ment banker. The last maiden
offering to hit the domestic mar-
ket was by microfinance firm
CreditAccess Grameen almost
three weeks ago.
Industry players say the
move has caught them on the
wrongfoot,asthemarketcondi-
tions are currently suited for the
primary markets.
“It is an awkward situation,
whenthemarketisdoingsowell,
we are witnessing good investor
appetite but there are no issuers
readytohitthemarkets,”saidan
investment banker, asking not
to be named.
In the past one month, the
BSE500 index, which tracks the
performance of top 500 listed
stocks, has rallied more than 5
per cent amid supportive insti-
tutional flows.
Mutual funds (MFs) have
pumpedinnearly~40billionthis
month, while foreign institu-
tional investments (FIIs), too,
have been marginally positive.
Bankerssaytheprocessofupdat-
ing audited quarterly numbers
takes at least four weeks.
LodhaDevelopers,RailVikas
Nigam, GR Infraprojects and
Reliance General Insurance are
someofthelargeIPOswaitingto
hitthemarket.Besides,thereare
twodozenmorecompaniesthat
have been sitting on Sebi
approvals for IPOs. On a cumu-
lativebasis,thesecompaniescan
raise as much as ~370 billion, as
the data provided by Prime
Database shows. To be sure, not
all these companies will be able
to come to the market for rea-
sons such as valuations mis-
match or substantial changes to
the offer structure.
market conditions remain sta-
ble.Unlikelastyear,volatilemar-
ketconditionshaveposedachal-
lenge to bankers and issuers in
2018. A record ~671 billion was
raisedby36companiesthrough
IPOsin2017.Incomparison,only
~273billionhasbeenmoppedup
by 20 IPOs this year.
“Last year, we witnessed a
secularbullmarketandinvestors
who were very hungry for trans-
actions; this year, investors are
far more sceptical,” said Anuj
Kapoor, head of investment
banking, UBS India, in a recent
interview.
In 2017, the benchmark
indices had seen almost a one-
way rally with participation of
broader markets. The markets
havebeenchoppythisyear,with
select stocks leading the charge.
“Whatdoesn’thelpIPOmar-
kets is uncertainty or extreme
volatility.That’stheenvironment
we have lived through this year,
making deal closures challeng-
ing.Therefore,theperformance
has been a mixed bag,” Sunil
Khaitan, India head, global cap-
ital markets, Bank of America
There is little doubt that con-
Apr Nil Nil sumerfirmsareinasweetspot,
May 18.44 IndoStar with improving demand. But
Jun 35.4 Varroc, Fine with reviving rural demand,
Organic, Rites some companies will perform
Jul 39.25 HDFC AMC,TCNS even better. Asian Paints, for
instance,whichhasunderper-
Clothing formeditssmallerpeerBerger
Aug 11.31 CreditAccess Gramin Paints in the past due to sub-
Total 104.4 7 issues duedruralenvironment,isone
of those expected to regain its
LARGE IPOS IN charm. While Asian Paints’
THE PIPELINE stock has risen 19 per cent in
the last two years, Berger
Issue size (~ bn)
Paints is up 29 per cent, nar-
RenewPower 60 rowing the valuation gap with
LodhaDevelopers 55 the paints’ leader. Berger
Rail Vikas Nigam 30 Paints is currently trading at
GR Infraprojects 18 44timesandAsianPaintsat48
times the FY20 estimated
Reliance GIC 16
Source: Prime Database
earnings.
Therewasareasonforthis.
Merrill Lynch, said recently. "Berger Paints' volumes rose
Industry players say compa- faster as compared to Asian
niessittingonapprovalswilllook Paints in the past few years
tohitthemarketsbeforethestate when rural economy lagged.
elections in December, which This also helped Berger Paints
could be another source of gain market share," says
volatility. Sachin Bobade, analyst at
Dolat Capital.
However, things are now
getting better even in the hin-
terland, led by normal mon-
soon, upward revision in min-
imum support price for kharif
crops, and improvement in
ruralinfrastructure.Manycon-
sumer firms have said recent-
ly that rural volume growth
was faster than urban.
This should play in favour
ofAsianPaints,asitisrelative-
ly more rural-focused (40-50
per cent of revenues), with
strongdistributionnetworkin
the hinterland.
The recent 10 per cent cut
in GST rate to 18 per cent
should help the organised
paints sector take away mar-
ket share from unorganised
players. Given unorganised
players' higher dominance in
ruralareas,AsianPaintsstands
MysuruandVizagplants,tobe
commissioned between
September and January,
should aid volumes.
“Bothcompanieswillgrow
intandem.Butwithprogressin
rural economy, Asian Paints’
volumewillgrowfaster.Thus,it
will get premium over peers,”
Bobade added.
Not that Berger Paints will
falter.Infact,itwillcontinueto
deliver robust performance,
but stock valuation could cap
upsides.
“Berger Paints is expected
todeliverindustry-beatingvol-
ume growth, with overall con-
sumption improvement and
increasing distribution net-
work. However, a slight fall in
market share or less-than-
expected volume growth will
impactthestock,givencurrent
valuations,”saysDhavalDama,
analyst at Equirus.
Inflationarypressure,amid
high inputs prices and weak
rupee, is a concern for the
paints industry. So, how com-
panies manage their prof-
itabilitywillbeadifferentiating
factor.

RInfra’spowerbizsaleseenpositive Markets edge lower

butanalystsadvisediscretion
PUNEET WADHWA
New Delhi, 30 August
Completion of its Mumbai power busi-
ness sale to Adani Transmission, and
the plan to cut debt sharply from ~220
billion to ~75 billion and become a
debt-free company by next year,
pushed the Reliance Infra (RInfra)
stock higher by over 7 per cent to ~477-
levels on the BSE in intra-day trade
on Thursday. The stock closed 5.54 per
cent higher at ~463.10.
The rub-off effect was visible on the
other Anil Ambani-controlled firms,
with Reliance Power and Reliance
Capital rallying over 7 per cent and 4
per cent, respectively, in intra-day
trade on Thursday, ending with 3-6 per
cent gains. However, Reliance
Communications closed little changed
and Adani Transmission slipped near-
ly 1.3 per cent to ~231-levels.
Though analysts see the develop-
ment as a positive for RInfra, they do
recommend ascertaining how prof-
itable the other business segments of
the remaining entity are before tak-
ing an investment call.
"The development is a positive for
sure. From a debt of ~220 billion earli-
er, RInfra now aims to become debt-
free by next year. That said, the rally in
stocks on Thursday was a knee-jerk
reaction to the development, and I
expect the euphoria to settle over the
next few sessions. Investors now need
to ascertain how profitable the other
businesses of RInfra are, and then
invest," said G Chokkalingam, founder
and managing director of Equinomics
Research.
According to reports, RInfra dis-
RELIANCE RELIANCE
INFRASTRUCTURE POWER
BSE price in ~ BSE price in ~
tributes electricity to over 25 million
consumers across Mumbai and Delhi,
directly or through subsidiaries. It also
generates 941 Mw of electricity from
its power stations located in
Maharashtra, Andhra Pradesh, Kerala,
Karnataka and Goa.
The other key business segment
for the company is infrastructure,
where it has a portfolio of 11 road proj-
ects totalling length of 970 km at proj-
ect outlay of about ~115 billion.
“One needs to assess whether the
deal resolves all the balance-sheet
problems from a long-term perspec-
tive and does RInfra have enough asset
base to create value for a long-term
investor," says says Gaurang Shah,
head investment strategist at Geojit
Financial Services.
Adding: "Given the overall debt on
the Anil Dhirubhai Ambani (ADAG)
companies, investors need to be cau-
tious. The ADAG group companies, of
late, have not created any value for the
shareholders. If anything, the wealth
has been eroded. There are better
RELIANCE
CAPITAL
BSE price in ~
plays in the infra space in case one
needs to take an exposure in the sec-
tor."
Except Adani Transmission, which
has gained around 5 per cent thus far
in calendar year 2018 (CY18), all pow-
er sector stocks have underperformed
the markets during this period, ACE
Equity data show. RInfra has slipped
nearly 14 per cent year-to-dae basis.
This is as compared to around 12 per
cent fall in the S&P BSE Power index
and around 14 per cent rise in the S&P
BSE Sensex during this period.
Going ahead, analysts expect the
power sector to see consolidation
where stressed assets/firms are bought
by larger, profitable players. In such a
scenario, the valuation at which a
stressed asset/firm is bought will
determine the road ahead for the
stocks. Nonetheless, NTPC and JSW
Energy are better placed to ride out
the storm, if any, said analysts, who
also believe that select road construc-
tion players could be looked at, given
the rising focus on the sector.
on rupee woes,
Improving outlook leads to
derivatives expiry re-rating for Balkrishna Ind
PRESS TRUST OF INDIA
Mumbai, 30 August
Capacity expansion expected to improve profitability
Benchmark indices Sensex and Nifty
fell for the second consecutive session
RAM PRASAD SAHU rebound in the mining seg-
ment, which accounts for 13
on Thursday, as investors fretted over a The stock of Balkrishna per cent of volumes, is also
plunging rupee and rising crude oil Industries has gained over 37 expected to keep volume
prices, while August futures and per cent in the last two growthstrong.Thecompany
options (F&O) expiry further added to months, on strong June quar- expects to improve its mar-
market volatility. ter results and expectations of ket share, currently at 4 per
The Sensex slipped 33 points, or an uptick in global demand cent, to 6-7 per cent over the
0.08 per cent, to 38,690. The Nifty for off-the-road tyres. next four years.
declined 15 points, or 0.13 per cent, to Brokerages have re-rated The company's back-
11,677. the stock after the quarterly ward integration will help
Investors offloaded their long bets in results, given they expect improve profitability. Given
the F&O segment, instead of carrying robust volume growth and the volume growth, it is
them forward to the next series for low-cost operations to reflect building a carbon black
September, adding to volatility. both on revenue and earn- on the back of a favourable manufacturing facility, with
The Indian rupee plunged to a new ings trajectory over the next product mix and lower input capacity of 140,000 tonnes.
life-time low of 70.85 against the dollar two years. The firm's net prof- cost. Margins, too, saw an Analysts at Anand Rathi say
(intra-day) on Thursday. it, for example, is expected to impressive 500 basis points the backward integration will
Further, global oil prices going past grow upwards of 30 per cent jump to 29.1 per cent. A weak- improve the company's prof-
$77 a barrel on a fall in US crude inven- annually from FY18-20. er Indian currency also aided itability over the next 3-4
tories, and expected disruptions to sup- The key trigger, recently, the gains. years. Analysts also estimate
ply from Iran and Venezuela, dented has been the 36-per-cent Someofthebullishnesson gains of about 1.5 per cent
investor sentiments on domestic bours- year-on-year growth in rev- the stock is also on account of annually at the operating
es. However, investors will be keenly enues, led by 23 per cent theupwardrevisioninvolume profit level, once utilisation
awaiting the June-quarter GDP data to growth in volumes in the growthguidanceofabout4per levels peak.
be announced on Friday, which will be June quarter. The perform- cent, which means a volume At the current level, the
one of the factors to decide the course ance of the company at the growth of 14 per cent for the stock is trading at 28 times its
for the markets. operating profit level has current fiscal. The company FY19 earnings estimates.
“Profit booking extended as a weak- been even better, with growth expects strong growth in off- Investors can look at the
er rupee, rise in oil prices and F&O of 67 per cent. The better the-road and agriculture tyres stock on dips.
expiry put pressure on domestic mar- operational performance was in Europe and the US. Market
kets. The rupee hit a fresh low of 70.8
the dollar was gaining strength against
EM currencies. Weak global markets
also added pain to domestic market
sentiments. Q1 GDP is the key data to be
watchful tomorrow, consensus expects
GDP to grow by 7.6 per cent which may
bring some respite to markets,” said
Vinod Nair, Head of Research, Geojit
Financial Services.

‘Market breadth has been really weak’

It is time to be cautious as markets are ignoring risks on the horizon, says chief executive long-term viewsof the market.
officer of Avendus Capital Alternate Strategies, ANDREW HOLLAND. In an interview to Depending on whetherit is bullish,
Samie Modak on the occasion of the launch of India's first ESG-based (environment, bearishor neutral, we decide how
social and governance) fund, Holland explains his investment strategy. Edited excerpts: much deploymenthas tobe made.

Benchmark indices are at an all-time
high. Where do you think markets are
headed?
For the near-term, weare cautious.
There are manymoving parts that can
impact sentiment negatively; the
marketseems to ignoring someof
them. There is the trade warinvolving
China. There are problems happening
in Brazil, Turkey and Argentina,
which the markets seemtobe
ignoring. Even if one takes a more
optimistic view that there is no trade
war between the US and Chinaand
the globaloutlookremains
strong, it would meanthe
rate hikes willrise more than
anticipated. This willagain
be a negative foremerging
markets (EMs). In that
scenario, commodity prices willrise,
which againis bad forIndia.
Whichever you look at it, the markets
willtakesomekind of hit. India is
relativelybetter placed as it doesn't
have someof the problemsof its EM
peers. But if things turnnegative
globally,you willsee money move out
of India too.
Despite headwinds such as currency
weakness and trade war fears,
markets have seen a sharp upmove.
What could have triggered the latest
risk-on?
Currencymarketshavebeenvolatile
butbondmarketshavebeenfairly
stable,globally.Thathasplayedin
favourofequitymarkets.Butthe
marketbreadthhasbeenweak. Ifyou
comparestocksnowwithJanuary
highs,thenumberofstocksbelow
theirone-yearhighs,asapercentageof
totalstocks,isalot.Onlyasmall
numberofstockshaveledindices
higherratherthanabroad-basedrally.
Mostsectoralindices,too,areway
belowtheirone-yearhighs,which
wouldn'tbethecaseifmarketswere
reallybooming.
Lot of ETF money is coming.
Is there a risk of markets
seeing a sharper fall if these
flows reverse?
ETFs in India are still quite small.
Globally, it maybe a big problem and
willhave a cascading effect elsewhere.
ETFs don't buy only five stocks, they
have tobuy anindex. However, given
the way markets have gone up, the
weightage of somestocks has
increased. So, weare seeing
concentration in buyingsomeof
these stocks. Therefore, if there is a
sell-off, the fall could be exacerbated.
In the past, you have aggressively
moved towards cash. Can you share
your investment approach?
Itisnot aboutcash but how you
manage that fund. Onethingwe have
told investors is that before trying to
generate 15-20 per cent returns,our
fund willtry protectingcapital first. It
doesn’t matter how the markets do. At
times whenrisks are high or there are
severalmoving parts, wegoto cash to
protect capital.Currently, weare
about 60 per cent cash. In January
too, we were 60 per cent cash. After
the markets fell in February and
March, weput somemoney to use and
our cash levels dropped to around20
per cent.
What correction are you waiting for
to deploy cash?
Asmarkets fall,wecandeploy cash.
Our investmentcommittee meets
regularlyto takeshort-, medium-,and
MF inflows have been strong. Do you
think aggressive MF buying is
creating valuation imbalances?
I haven’t done any analysis. You had
those imbalances workingagainst
you whenMFswere doing
recalibration of different funds. Now,
whenthey are comingback, they
want tobuy the beststocks, which
aren’t gettingany cheaper.
How much return will benchmarks
deliver in the next two years?
Earnings momentumis pickingup.
We expect earnings growth (for Nifty
firms) tobe 15 per cent in 2018-19, and
accelerate in 2019-20.Our view is that
the market returnswillbe in linewith
earnings growth.
What explains growth in alternative
investment funds (AIF) industry?
AIFs have given wealthyinvestors a
new asset class toinvest in.We only
haddebt and equity. So,you either
takea lot of risk or no risk. What the
hedge fund industry has done is to
takeyou along the curve. If your risk
appetite is lower thanequity,you have
somethinglikeanAvendus
Enchanced ReturnFund, which
targets high alphaand lowbeta. If
debt returnsare goingtobe 6 per cent,
this fund tries to deliver up to 4
percentage points higher.
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official

.
MUMBAI | FRIDAY, 31 AUGUST 2018 THE SMART INVESTOR 15 <

Nifty, Bank Nifty

rollovers drop
Analysts selective on road sector stocks
High earnings
Rollovers of Nifty and Bank
visibility, CORRECTION OFFERS AN OPPORTUNITY
Nifty contracts were lower in Closing* % change#
August as compared to the manageable S&P BSE Sensex 38,690.1 13.6
previous month, a signal that
investors could be turning debt-equity NBCC 72.3 -41.4
cautions following sharp
recent gains. levels factors Dilip Buidcon
PNC Infratech
831.1
159.95
-15.8
-21.3
Nifty rollovers stood at 67
per cent for August, compared
to consider NCC 98.3 -26.4
to 71 per cent in July, while Ahluwalia contracts 315.1 -19.2
Bank Nifty rollovers stood at PUNEET WADHWA & UJJVAL JAUHARI J Kumar Infra 270 -10.0
65 per cent against 76 per cent. NewDelhi,30August Ashoka Buildcon 138 -15.6
Rollover is a term used for the IRB Infrastructure 190.85 -19.8

C
carrying forward of deriva- onstruction of roads
tives positions from a series across the country has yet Sadbhav Engineering 281.1 -34.0
that is expiring, to the next- CG Power and Andhra Bank again assumed impo- *As on August 30, 2018; Share price on BSE in ~; #Year-to-date
month series. Thursday was saw rollovers of around 99 per rtance, with the latest Reserve
the expiry day for the August cent each. At least 28 stocks Bank of India’s (RBI) annual Dilip Buildcon and Simplex two–three years ago. That said,
series derivative contracts. saw more than 95 per cent report for 2017–18 expecting the Infrahaveslippedintherangeof investors should remain selec-
Overall, market rollovers rollovers. Market players said economy to look up further, aid- 13-64 per cent. While analysts tive while putting money into
were in line with the previous traders didn’t get their posi- ed partly by infrastructure attribute the fall to a sharp cor- these stocks. Earnings visibility,
month at 88 per cent. Stocks tions in stocks that were to be expenditure. rection in mid-and small-cap manageable debt-equity levels,
for which derivative contracts physically-settled, to avoid “During 2018–19, the infra- indices, there were some con- and transparent management
are physically-settled, saw levy of higher securities trans- structure mission is set to accel- hybrid annuity model (HAM) — “With the resolution of land totalling ~1 trillion — up 70 per cernsonfinancialclosures(bank are factors to consider,” said G
high rollovers. Adani Power, action tax. BS REPORTER erate. In the road sector, the key which ensures the capital is not acquisition problems, a new cent year-on-year (y-o-y), financing) for HAM projects Chokkalingam, founder and
targets are awarding works for stuckforalongdurationinapar- chairman, and the new pipeline reports suggest. Along with after strong order flows in FY18, managing director of
around 20,000 km of national ticular project. (Bharatmala Paryojna) announ- thoseawardedbytheMinistryof thus leading to uncertainty on Equinomics Research.
highways;constructionof45km “That apart, there are incen- ced in late 2017, the order award Road Transport and Highways the execution front. The con- Macquarie, too, had suggest-
> TODAY’S PICKS per day vis-à-vis 27 km per day tives for companies to complete activity in FY19 and beyond is (MoRTH),thetotalroadcontract cerns, however, have receded as ed investors to be selective and
last year; and developing ring projects early. I like NBCC and likely to remain robust,” said awards for FY18 stood at 17,055 execution has picked up. select firms with a proven long-
roads around 28 major cities Dilip Buildcon in the road con- Deepika Bhandari, analyst in km — 7 per cent higher than With improved lending, out- term execution track record,
Nifty under the Bharatmala project,” struction segment,” Prabhakar the institutional research divi- FY17. look on financial closures has lower dependency on NHAI
Current: 11,677 (fut: 11,740), Target: NA the RBI report noted. added. sion at Phillip Capital. She rec- A look at the stocks from the improved as well. Execution order awards, superior balance
Stop-long positions at 11,650. The Centre’s focus over the Analysts at Phillip Capital ommends stocks such as NCC, sector, however, paints a differ- during the first five months of sheet strength, and exposure
Stop-short positions at 11,825. Big past few years, according to A K agree and believe that with 40 Ahluwalia Contracts, J Kumar ent picture, with a number of FY19 has improved by 10-12 per towardsBOT(build-operate-toll)
moves could go till 11,875, 11,600. Prabhakar, head of research at per cent contribution coming Infra, Ashoka Buildcon, PNC themunderperformingthemar- cent according to rating agency businessaidingcashflows.Their
A long 11,500p (65), long 11,900c IDBI Capital, has been on infra- from the National Highway Infra and Sadbhav Engineering ket in calendar year 2018. On a Icra, which is impressive given picks included IRB
(65) can be offset with short structure, especially roads and AuthorityofIndia(NHAI)under in the road construction seg- year-to-date basis, counters like the ongoing monsoon season, Infrastructure,AshokaBuildcon
11,400p (48), short 11,200c (37). rail. Companies, he said, have the HAM model, project execu- ment. NBCC,HindustanConstruction, which is typically lean. and Sadbhav Engineering.
also benefitted from the new tion has been significantly de- During FY18, the NHAI Sadbhav Engineering, PNC “Despitethefall,thesestocks
contractawardingsystem—the risked. awarded contracts for 7,400 km, Infratech, Ashoka Buildcon, are trading above the levels
Bank Nifty
Current: 28,103 (fut: 28,229)
Target: NA
Stop-long positions at 28,075.
Stop-short positions at 28,400.
Big moves could go till 28,550,
27,875. Trend has slightly
Have fluctuating income? Opt for single-premium policy
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Current price: ~253 Single-premium policies seem tobe pay the entire premium for all the Company Plan Single premium Regular premium* tenure and sum assured, he will pay
Target price: ~247 gathering traction.Accordingto the years covered in your life insurance a premium of ~8,235 yearly, and the
Keep a stop at ~256 and go July 2018 report of the Insurance policy at one go. The regular
HDFC 3Dplus life option 182,495 11,891 total premium he will end up paying
short. Add to the position Regulatory andDevelopment premium option, which is the ICICI Prudential iprotect smart 206,880 11,918 is ~247,050, which is almost 44 per
between ~248 and ~249. Authority of India, the first-year conventional way of paying, allows Exide Life Elite term plan 183,964 11,680 cent more, compared to the single-
Book profits at ~247. individual single premium of you topay the premium annually. premium policy.
private life insurance companies However, the term of single- Aegon Life iTerm 175,374 9,512 As for tax savings, premiums
increasedby 56.94 per cent, premium policies is usually 10years, Note: 35 years old, based in Delhi, non-smoker; Tenure of the policy-25 years; sum assures 10 million paid for both types of insurance
ITC compared toJuly 2017. This is but policyholders can exit the policy *Yearly Source: Companies website policies are eligible for deduction
Current price: ~320 primarilybecause of substantial after five years. under Section 80C, up to a
Target price: ~326 cost savings. “The major Single-premium policybenefits, policyholder’s Dhulipala, appointed actuary, Bajaj maximum limit of ~150,000.
Keep a stop at ~317 and go reasonbehind the payment option requirements, earning capacity, and Allianz Life Insurance. However, However, since the Section
long. Add to the position
between ~324 and ~325.
growth in sales of single-
premium policies is the
YOUR MONEY demands a lump sum
amount of payment all
commitment.”Opting for single
premium also works for people who
experts say, single-premium
policies offer lesser sum assured,
includes many other instruments
such as employee provident fund,
Book profits at ~326. lower premium rates at once. Someone with are forgetful by nature. It will help compared toregular premium ones. public provident fund and others,
they offer along with a fluctuating income them avoid any lapse in policy and “This is because the insurer can take it is unlikely the amount paid for a
comparatively higher canopt for the single- consequently lose out on policy a higher risk in case of regular single-premium policy will get the
Sun Pharma death benefits,” says premium option. benefits. premiumplanson accountof entire benefit. In such
Current price: ~640 Naval Goel, chief Salaried individuals In the case of single-premium continuouscashflows comingin,” circumstances, regular plans score.
Target price: ~650 executive officer, should opt forregular ULIPs, policyholders can also adds Goyal. “The benefit of regular insurance
Keep a stop at ~635 and go PolicyX.com. premium policies. switch between different funds Nonetheless, the pricesbetween policies over single insurance
long. Add to the position In case of life insurance term “Paying the premium amount at one without being charged separately. the twotypes of payment options policies is that the taxpayer can
between ~646 and ~648. plans,a long-term product, go for a salaried individual will “Policyholders can choose toinvest vary quite a bit. Ajay Singh, a 30- claim deduction with respect to the
Book profits at ~650. premium payment term, and mean dippinginto his/her savings,” the entire premium in a low-risk year-old salaried man (non-smoker) premium paid in each year of
DEVANGSHU DATTA frequency ofpayment matter the says Rakesh Goyal, director, Probus fund and systematically move it toa opts for a single-premium term payment,” says Naveen Wadhwa,
most. The twotypes of payment Insurance Broker. He adds: “Opting high-risk fund. This enables an plan.For a sum assured of ~10 deputy general manager,
Target prices, projected movements in terms of next session, options - single premium and for a particular premium frequency individual to tide over market million and a policyterm 30 years, Taxmann.
unless otherwise stated regular premium insurance policy- depends on product suitability, volatility,” says Saisrinivas he pays a one-time premium of

COMMODITIES1
>

> PRICE CARD

COMMODITY DERIVATIVES
Centre tells states to
As on Aug 30 International Domestic
------------------------------------------------------------------------------

Price %Chg# Price %Chg#

------------------------------------------------------------------------------ NCDEX’s clearing corporation explore lapsing mine
blocks by December
METALS ($/tonne)
Aluminium
Copper
Nickel
2,116.0 -6.6
6,065.0 -10.9 6,842.0 -9.0
13,415.0 -9.8 14,136.3
2,318.3 -11.2

-7.4
set to go live next month
RAJESH BHAYANI launch a deliverable metals con-
Lead 2,065.5 -14.7 2,247.7 -14.4 Mumbai, 30 August tract in the coming months.
From October 1, stock

T
Tin 19,010.0 -7.4 19,720.1 -8.6 he markets regulator is exchanges would be authorised
Zinc 2,506.0 -19.3 3,053.4 -13.1 working to expand the to start a commodity derivatives
width and depth of the segment. BSE is prepared to
Gold($/ounce) 1,206.4* -7.3 1,325.4 -7.1 commodity derivatives market. launch one from that date, as is
Silver($/ounce) 14.7* -11.0 16.3 -10.4 Among the measures are a the National Stock Exchange.
clearing corporation which is Entry of mutual funds and
ENERGY separate from an exchange’s portfolio management services
CrudeOil($/bbl) 77.3* 0.2 74.8 0.7 trading function, allowing equi- into the segment will take some
ty and commodity exchanges to time, said Paranjape; however, JAYAJIT DASH It is proposed to be amended for
NaturalGas($/mmBtu) 2.9* -0.3 2.9 -0.2 enter each other’s area, inviting the process is on. A working Bhubaneswar, 30 August drawing an exploration schedule, so
proposals for commodity index group of all stakeholders have that the blocks could be auctioned
AGRI COMMODITIES ($/tonne) futures and rules for entry of for- given a report and the relevant The Union mines ministry has told before their validity ends. This is to
Wheat 238.3 15.0 282.7 4.9 eign traders. arrangements and regulations all states to ensure exploration is ensure that production of key min-
These were mentioned by S K areas expected to be in place complete by this December of min- erals like iron ore, manganese and
Maize 214.5* 8.3 193.0 8.4 Mahanty, full-time member of within the next one to two eral leases expiring by March 31, chromite is not hit by expiry of lease.
Sugar 323.4* -7.3 481.9 10.9 the Securities and Exchange THE ROAD AHEAD months. Mahanty says regula- 2020. It has also reminded them, yet The operative mines due to lapse
Board of India. He was speaking tions for allowing hedging by again, to initiate the process of title by March 2020 are mostly of iron
Palmoil 562.5 -11.1 925.9 -13.1 MCX’s clearing corp to start custodians on commodity
at the launch of the country’s first foreign companies having expo- re-auction of these blocks by July ore. Together, these non-captive iron
clearing Friday’s trades from segment in final stages; hedge
Rubber 1,434.2* -12.6 1,902.7 0.1 clearing corporation for com- sure in India are in the final 2019, to ensure no shortfall in raw ore mines have an approved annual
modities, floated by the Multi Monday; NCDEX CCL in Sept funds also to be active stages. material and a seamless transition in capacity totalling 85 million tonnes
CoffeeRobusta 1,629.0* -4.2 2,233.5 11.2 Commodity Exchange (MCX, as Sebi invites proposals for Foreign entities with their ownership. (mt) a year, of which Odisha
Cotton 1,827.6 -10.4 1,910.9 1.6 a 10 per cent subsidiary, with ~1.5 index futures; MCX has already exposure in Indian commodity Clearing Corp Theministry’sdatashows288leas- accounts for 66 mt.
* As on Aug 30, 1800 hrs IST, # Change Over 3 Months
billion net worth). submitted business to be permitted to The work of clearing corpora- es for iron ore, chromite, limestone, In all, this state has 31 mines
Conversion rate 1 USD = 70.7 & 1 Ounce = 31.1032316 grams. He said stringent norms for hedge in derivatives tions in the commodity seg- manganese, bauxite, graphite, lime- heading for expiry, 24 being oper-
Notes: meeting all types of scenarios, MF, PMS agreement with ment begins once a trade is stone, garnet and kyanite are due to ative ones. Of the latter 24, explo-
1) International metals, Indian basket crude, Malaysia Palm oil, including default management done, from collecting of mar- lapsebyend-March2020.Goahasthe ration activity has been completed
Wheat LIFFE and Coffee Karnataka robusta pertains to and liquidation policies, have floated by the Metropolitan Stock repository set up by CDSL, a gins till settlement. highest number, 120; then come for six and 15 others have sent
previous days price. been prescribed for commodity Exchange. record keeping agency for com- According to a media note, Karnataka and Odisha with 45 and 31 revised plans to the Indian Bureau
2) International metal are LME Spot prices and domestic metal
are Mumbai local spot prices except for Steel. clearing corporations. The new Mahanty said the norms for modities, will be active from MCXCC will provide counter-par- miningleases,respectively.Ofthe288 of Mines.
3) International Crude oil is Brent crude and Domestic Crude oil MCXCC will do its first clearing commodity clearing had been November. Along with the ty risk management and post- mines, 59 are in a working state and “As per the state government's
is Indian basket.
4) International Natural gas is Nymex near month future & on Monday, for the trades that so designed that if there is NCDEX repository, it would tradeservices.Itwillbethecentral the balance are non-working leases. assessment,G2-levelexplorationwill
domestic natural gas is MCX near month futures. will happen on Friday. default in one commodity, this start issuing electronic nego- counter-party (a legal first for Mineral-bearing states have been be completed for all working mines
5) International Wheat, White sugar & Coffee Robusta are LIFF E
future prices of near month contract. TheNationalCommodityand could be managed without tiable warehouse receipts for MCX) for all trades on the getting repeated reminders from the by December 2018 (G2 refers to gen-
6) International Maize is MATIF near month future, Rubber is Derivatives Exchange (NCDEX) impacting other commodities. agricultural commodities. exchange. The clearing corpora- Union ministry to prepare the sched- eral exploration, as opposed to a pre-
Tokyo-TOCOM near month future and Palm oil is Malaysia FOB
spot price. is in the final stage for launching MCXCC is starting with a set- Mrugank Paranjape, managing tion will be responsible for collec- ule for a transition in title. The liminary one). In respect of the non-
7) Domestic Wheat & Maize are NCDEX future prices of near
month contract, Palm oil & Rubber are NCDEX spot prices.
of its clearing corporation. It will tlement and guarantee fund of director of MCX, later said at a tion of margins from the mem- urgency to prepare the blocks for workingmines,wewillseekapproval
8) Domestic Coffee is Karnataka robusta and Sugar is M30 go live, said Mahanty, next ~2.3 billion, which MCX is trans- media briefing that they were bers, effect pay-in and pay-out, of auction stems from the recent noti- for conducting auctions under
Mumbai local spot price.
9) International cotton is Cotton no.2-NYBOT near month future month. Another commodity ferring to it. talking to the warehouse regu- fundsandcommodities.Members fication of the Draft Mineral Section18AoftheMinesandMinerals
& domestic cotton is MCX Future prices near month futures. exchange, ICEX, plans to use the The MCX repository (MCX lator in this regard. may choose among 13 clearing Concession and Development (Development & Regulation) Act,”
Source: Bloomberg Compiled by BS Research Bureau services of a clearing corporation has 24 per cent equity in the He added they planned to banks for fund settlement. (Amendment) Rules by the Centre. said a government official.
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official
16 WORLD
>
MUMBAI | FRIDAY, 31 AUGUST 2018 1

IN BRIEF
Panasonic’s post-Brexit move:
from London to Amsterdam
Brutal Argentina-Turkey CLSA returning
to Pakistan after
Panasonic is set to move its European headquarters from near
London to Amsterdam because of Brexit, marking another high-
profile shift out of the country. The electronics manufacturer has
been mulling the decision for 15 months, Panasonic’s European
head Laurent Abadie told Japan’s Nikkei newspaper, amid
sell-off engulfs EM peers almost 20 years
BLOOMBERG good time to establish a formal
concerns Japan may treat the UK as a tax haven. The office employs Peso hits an all-time low, policy makers raise benchmark rate to 60% Hong Kong, 30 August presence,” CLSA CEO
about 20 to 30 people outside of London, according to the Nikkei Jonathan Slone said in an inter-
report. The potential move comes amid rising concerns over a “no
deal” Brexit. The timeline for the UK government’s negotiation
BLOOMBERG
New York, 30 August
... AND ALL TAKE A FALL CLSA is returning to Pakistan view, while declining to share
after almost two decades, as the financial details. “Our strategy
with the EU took a turn for the worse Wednesday with the UK telling ARGENTINA company controlled by China’s is to establish an on-the-
the EU negotiators it must compromise on its opposition to British | Merval Index gained 6.3 per cent

T
he massive currency plunge in biggest brokerage steps up its ground presence in all major
Prime Minister Theresa May’s plans or risk a disorderly exit from the Argentina and Turkey deepened, to 27,001.67 expansion into markets that Asian markets, with a particu-
trade bloc. In Panasonic’s case, with Europe accounting for less spurring a sell-off in emerging
INDIA are part of the government’s lar focus on markets in the Belt
| Peso fell 17.4 per cent to
than 10 per cent of sales, Japan’s potential treatment of the UK as a markets. Belt and Road Initiative. and Road Initiative.”
40.90 per dollar
tax haven prompted the decision, Abadie said. BLOOMBERG< The peso tumbled to a record low, Hong Kong-based Credit CLSA exited Pakistan in
prompting Argentine policy makers to raise | Central bank raised key 7-day Leliq rate to | Sensex Index dipped Lyonnais Securities Asia 2001 due to what Slone called
the nation’s benchmark rate to 60 per cent 60 per cent 0.1 per cent to 38,690.10 (CLSA) agreed to buy a 24.9 per “considerable instability” at the
China finds a way Apple buys reality from 45 per cent. In Turkey, a report that | Morgan Stanley said peso depreciation will cent stake in the securities unit time — despite the operation
to get rid of display start-up the central bank’s deputy governor was set to probably continue | Rupee, the partially of Bank Alfalah, which is being profitable.
resign sank the lira. South Africa’s rand convertible currency, hit backed by the World Bank’s The South Asian nation’s
‘online rumours’ Akonia Holographics extended its slide, sending volatility to its an intra-day low of 70.86 International Finance, accord- security has improved; terrorist
China has launched a platform, Apple has acquired Akonia highest since December 2016 amid a con- TURKEY CHINA against the US currency, ing to a statement on Thursday. violence dropped to the lowest
which includes a mobile app, Holographics, a six-year-old troversial land reform debate. Brazil’s real | Lira | Shanghai The joint venture will be level in more than a decade last
but closed the day at
that lets the public report “on- maker of displays for pared losses after the monetary authority declined Composite chaired by Aliuddin Ansari, year, according to South Asia
70.74, as RBI sold dollars
line rumours” and even uses augmented-reality glasses, as extended its currency intervention. 3.7 percent Index fell 1.1 who was chief Terrorism Portal.
artificial intelligence to identify the iPhone-maker explores a Emerging markets got pummeled again to 6.7193 per dollar per cent to 2,737.74 | 10-year local-bond yield executive officer at CLSA exited Pakistan “When foreign-
reports that are false, as Beijing foray into the burgeoning field. amid concern that Argentina and Turkey’s gained two basis points one of Pakistan’s in 2001 due to what ers came here years
cracks down on what it views as Apple, seeking a breakthrough struggles to restore investor confidence will | Fitch said nation’s | Offshore yuan largest conglom- CLSA CEO Slone, ago, you always
banks may face declined 0.4 per to 7.9322 per cent
socially destabilising content. product to succeed pressure their economies further — while erates and previ- called ‘considerable had an armed
The platform, launched on the iPhone, is said to be embroiling the rest of the developing world. negative rating cent to 6.8473 per | BlackRock said it sees ously CEO for the instability’ at the guard, now you
Wednesday, comes as Beijing prepping to ship an AR headset That comes at a really bad time when con- actions dollar buying case for India local unit of CLSA. time — despite the don’t bother,”
steps up efforts to police the or device as early as 2020. sidering the other challenges that investors | Central bank | 10-year local-bond amid limited contagion Ansari and Alfalah operation being Donald Skinner,
internet, especially social media Akonia’s “HoloMirror” face — the end of an era of cheap money, Securities CEO profitable group secretary at
Deputy Governor yield declined three
used by people to discuss pol- technology is designed to prospects of a global trade war and deep polit- | Rupee is taking cues from Atif Khan will CLSA, said in an
itics and other sensitive sub- project full-colour images onto ical uncertainties in places such as Brazil.
Erkan Kilimci will basis points to acquire a com- interview in
oil as Brent hovers near
jects, despite stringent censor- the transparent glass lenses of “These currencies are infecting emerg- resign from role 3.595 per cent bined 12.6 per cent stake, with Karachi. “I don’t think that
$78 per barrel, said
ship. Besides a website, the augmented-reality headsets, ing markets,” said Shamaila Khan, director | Turkey Must Look | Government urged Anindya Banerjee, the deal expected to be com- message has got across to
platform Piyao also has a mobile according to its website, a of emerging-market debt at Back to Move US to make “right pleted by November. many people out there.”
currency analyst at Kotak
app and social media accounts capability that will dovetail AllianceBernstein in New York. “There will Forward: Daron decision” as tariffs The transaction comes a CLSA is now in discussions
with social media giants Weibo with the US giant’s own efforts. be volatility around headlines and today is Securities in Mumbai year after Pakistan was upgrad- for a presence in Bangladesh,
Acemoglu near
and WeChat. REUTERS< REUTERS< one of the negative days.” ed from frontier to emerging- said Skinner, without provid-
market status in MSCI’S global ing more details. Pakistan’s
indexes, which fuelled expec- benchmark KSE100 Index has
tations that, along with invest- fallen about 14 per cent since

Berkshire bought own stock, UK minister slams Google

ments from the $60 billion MSCI’s move, amid economic
China-Pakistan Economic and political instability.
Corridor, the country would Finance Minister Asad Umar

added to Apple pie: Buffett over ‘child abuse content’

lure a wider class of investors. — a former head of Pakistani
CLSA, the international bro- conglomerate Engro who was
kerage of China’s Citic succeeded in the role by Ansari
Securities, is pushing into mar- — said this month the econo-
REUTERS month, in a move that could mark its kets including the United Arab my may need more than $12
REUTERS A buy-back policy announced London, 30 August return to a market it abandoned eight Emirates and Bangladesh after billion to halt a looming finan-
New York, 30 August on July 17 gave Buffett, who has years ago on censorship concerns. setting up a 25 per cent-owned cial crisis. He also promised to
gone two and a half years since a British foreign minister Jeremy Hunt Google said in a statement they venture in Sri Lanka in 2014. make all Chinese agreements
Warren Buffett, the billionaire chair- major acquisition, a new way to accused Google on Thursday of aban- agreed with Hunt that child sexual “The cost of entry into the public after criticism of
man of Berkshire Hathaway, on deploy Berkshire’s $111.1 billion of doning its moral values by failing to abuse was “abhorrent and must be market is reasonable and while Beijing’s opaque Belt and Road
Thursday said the conglomerate has cash and equivalents. remove child abuse content while removed, that’s why we co-operate it remains under-owned, it is a loan terms.
bought back its own stock for the first Berkshire said the policy would launching a version of its search engine with governments to fight child sexu-
time since 2012 and has added a “lit- free Buffett and vice-chairman in China that will block some websites. al abuse online”.
tle” to its already huge stake in Apple. Charlie Munger to repurchase stock The British government has repeat- Britain, the US, Australia, Canada
Buffett also said investors are when the price was below edly criticised online platforms such and New Zealand invited major tech-
better off owning a basket of stocks Berkshire’s “intrinsic value,” a as Twitter, YouTube and Facebook for nology companies to attend a meeting APPLE CONFIRMS SEPTEMBER 12 EVENT
than 30-year bonds and other fixed- determination that would be made failing to remove abusive material or on tackling child abuse and extremism
income securities, as a strong US “conservatively.” sexual content posted online even after on their websites, but the firms Apple is set to roll out its latest lineup of
economy bolsters corporate profits Berkshire’s old policy forbade they were notified. declined to attend, the Daily Mail products on September 12 at the Steve Jobs
despite higher costs from tariffs, buybacks unless the price exceeded “Seems extraordinary that Google reported on Thursday. Theater in the company’s Cupertino,
which have also affected Berkshire. 1.2 times book value per share. The is considering censoring its content to Google said they did offer to send an California campus, the iPhone maker said
“I don’t know when to buy Warren Buffett Omaha, Nebraska-based company get into China but won’t cooperate with executive to the conference. on Thursday.
stocks, but I know whether to buy recently traded at around a 1.45 UK, US... in removing child abuse con- In January, British Prime Minister Apple is preparing to release three new
stocks,” Buffett, celebrating his 88th businesses in the insurance, energy, times multiple. tent,” Hunt said on Twitter. Theresa May used an address at the smartphones this year, including the
birthday, said on CNBC television. food and retail, industrial, railroad Buffett said “we’ve bought back a “They used to be so proud of being World Economic Forum in Davos to say largest iPhone ever, a device that may have a bigger display
“Business is good across the and other sectors, and invests in little” stock since the change, and values-driven.” Alphabet’s Google investors should use their financial pow- than arch-rival Samsung’s flagship phone, Bloomberg reported
board,” he added. “It was good two companies such as Apple, Wells that he and Munger need “a big plans a search engine in China that will er to force internet firms into taking more in February. The company’s shares rose 1.6 per cent to an
years ago, it keeps getting better.” Fargo & Co, Bank of America and enough discount” to ensure that block some search terms and websites, responsibility for stopping militants and all-time high of $226.63. REUTERS<
Berkshire has more than 90 Coca-Cola. long-term shareholders are better off. two sources told Reuters earlier this paedophiles using their platforms.

STOCKS
IN THE
> STOCK
> Bosch > Neuland Laboratories > Roto Pumps

NEWS Top gainer among the

A group stocks
Trading volume jumps
15 times
Close at upper circuit
filter of 20 per cent OF THE DAY
3M India: Stock hits new
~20,037.00 PREVIOUS CLOSE ~719.50 PREVIOUS CLOSE ~110.40 PREVIOUS CLOSE all-time high at ~26,200.10,
~22,015.55 CLOSE ~771.20 CLOSE ~132.45 CLOSE up 44 per cent from three
S 9.87% UP S 7.19% UP S 20.00% UP months low
> .

NIFTY 50 ADVANCES/DECLINE
Company Close (~) % Wt PE Company Close (~) % Wt PE
F&0 SNAPSHOT DAY’S TOP GAINERS DAY’S TOP LOSERS
30 Aug ’18 Chg (%) Con Std 30 Aug ’18 Chg (%) Con Std Futures Cash Premium Futures Cash Discount Company Day’s high Close % chg* 3mth high 52 wk high Company Day’s low Close % chg* 3mth low 52 wk low
price price (%) price price (%)
Adani Ports 383.8 -0.6 0.6 22.0 35.0 IOC 154.3 -1.4 1.3 6.6 6.3 Bosch 22395.1 22015.6 9.9 22395.1 22600.0 Kajaria Cer 473.4 474.9 -3.3 405.0 405.0
Asian Paints 1378.7 -1.1 1.3 59.4 64.9 ITC 319.9 2.3 8.0 34.0 34.1 MOST BULLISH MOST BEARISH SREI Infra Fin 54.3 53.9 6.6 78.7 130.0 InterGlobe Avia 921.3 941.2 -2.9 891.1 891.1
Axis Bank 649.8 -1.1 2.5 366.1 - Kotak Mah Bank 1278.1 -0.8 3.5 37.9 58.1 NHPC 25.1 25.0 0.6 Balram Chini 75.6 76.2 -0.9 Reliance Power 38.0 36.6 5.9 38.0 65.2 Future Retail 540.8 542.4 -2.3 453.1 453.1
Bajaj Auto 2701.7 0.5 0.8 17.7 18.4 L&T 1346.6 -0.4 3.9 22.3 32.9 Syndicate Bank 40.8 40.6 0.4 Equitas Hold 157.9 159.0 -0.7 Reliance Infra 477.8 463.1 5.5 477.8 589.8 Infibeam Aven 225.0 228.1 -2.3 146.1 87.0
Bajaj Fin 2926.8 -2.0 1.5 63.3 58.8 Lupin 893.7 0.7 0.4 395.5 28.5 Allahabad Bk 42.0 41.9 0.4 Reliance Power 36.5 36.7 -0.4 Bank of India 100.5 99.8 4.9 104.9 216.7 Amara Raja 839.0 843.1 -2.2 714.0 665.5
Bajaj Finsrv 6929.9 -0.6 0.9 32.3 768.4 Mah & Mah 983.0 -0.1 2.0 15.4 25.3 Infibeam Inc 229.4 228.7 0.3 Granules 112.3 112.7 -0.4 Oriental Bank 86.5 84.9 4.8 86.9 159.8 Eicher Motor 27552.1 27602.9 -2.2 26670.1 26000.0
Bharti Airtel 383.1 2.2 1.0 74.9 - Maruti Suzuki 9205.8 -1.7 2.5 35.3 34.2 Develop Cr Bank 175.7 175.1 0.3 Can Fin Home 316.5 317.7 -0.3 Dilip Build 841.5 833.7 4.8 945.0 1248.4 RBL Bank 623.1 626.8 -2.1 502.8 443.0
Bharti Infratel 284.4 0.3 0.5 21.3 20.8 NTPC 169.7 2.2 1.1 13.3 13.6 Andhra Bank 33.8 33.6 4.2 37.9 73.5 Page Inds 34811.4 35158.0 -2.0 23915.0 17280.0
BPCL 363.4 0.5 0.7 8.0 8.3 ONGC 177.5 0.3 1.5 8.7 10.3 BSE NSE Syndicate Bank 41.3 40.7 3.7 53.5 95.7 PNB Hou Fin 1350.2 1364.7 -1.9 1051.0 1051.0
Cipla
Coal India
649.5
285.6
0.9
-0.2
0.7
0.8
36.4 32.7
21.0 19.0
Power Grid 197.0 2.0 0.9 12.6 12.2 Index Stock Index Stock PUT-CALL RATIO India Cement 127.2 125.8 3.7 133.6 205.9 Exide Ind 283.6 284.4 -1.9 245.7 192.9
Reliance Ind 1274.5 -1.5 8.9 22.1 23.6 Allahabad Bk 42.4 41.8 3.6 48.2 89.2 Bharat Fin Incl 1140.0 1140.2 -1.9 1135.1 871.3
Dr Reddys 2380.2 -0.2 0.6 29.1 43.8 FUTURE (Open Interest in Mn) Put Call PC Ratio
SBI 308.6 -0.4 2.4 - - Jain Irrig 86.5 85.6 3.4 105.8 150.4 Adani Power 34.3 34.5 -1.8 15.2 15.2
Eicher Motor 27602.2 -2.1 0.8 36.3 41.6 Contracts - - 398296 2007357
Sun Pharma 640.0 3.0 1.4 38.0 145.8 Market 738.6 1247.6 0.6 Godfrey Ph 894.0 889.2 3.3 894.0 1083.8 Max Fin Sre 461.4 464.1 -1.8 403.7 403.7
GAIL 376.2 2.4 0.8 17.7 17.5 Open Int.(000) - - 38002 5522563
Tata Motors 259.4 -0.9 1.0 18.6 130.0 Wockhardt 675.5 665.0 3.2 748.8 1012.0 HPCL 251.8 253.1 -1.8 251.1 251.1
Grasim Ind 1074.0 -0.1 0.9 18.4 34.2 Shares(In Mn) - - 25.4 6122.2 Top 5 PC Ratio Bottom 5 PC Ratio
Tata Steel 608.4 2.4 0.9 3.7 11.5 Value(~ Mn) - - 381025 1434572
HCL Techno 1016.6 -1.6 1.1 15.8 18.7 Repco Home 6.5 Containr Crp 0.0
HDFC 1934.2 -1.1 6.7 20.1 25.5 TCS 2082.4 0.5 4.6 29.2 31.0 OPTIONS
MRPL 3.3 Page Inds 0.1 * Ranked on the basis of percentage gain/loss on previous close
HDFC Bank 2066.1 -0.6 9.1 30.3 30.8 Tech Mahindra 731.9 -0.3 0.9 18.4 17.4 Contracts - - 15725202 1153147
Titan Company 878.4 -0.5 0.7 70.8 62.6 Axis Bank 1.7 Siemens 0.1
Hero MotoCorp
Hindalco
3223.7
240.3
-0.7
1.4
0.9
0.7
17.3 17.4
8.9 34.6 UltraTech 4426.4 0.6 0.9 62.1 62.7
Open Int.(000)
Shares(In Mn)
-
-
-
-
143669 1842478
786.0 2381.8
Dish TV 1.6 Crompton Grv 0.1 MOST TRADED TOP M-CAP TRENDS
ACC 1.3 Hexaware Tch 0.2
HPCL 253.1 -1.8 0.8 5.3 5.4 UPL 696.2 2.4 0.5 17.1 58.4 Value(~ Mn) - - 16562210 935052 Value Volume Rank Company Mcap (~ billion) Company % change Company % change
HUL 1772.9 1.0 2.6 73.4 70.0 Vedanta 230.0 0.9 0.9 6.2 11.6 BSE+NSE BSE+NSE
1 Reliance Ind 8075.8 BS200 Bharat Paranter 40.6
Wipro 299.0 0.7 0.7 16.9 17.8 (~ million) (Mn shrs)
ICICI Bank
Indiabulls Hous
344.4
1262.3
1.1
-1.4
4.5
0.9
28.7 48.1
13.1 14.2 Yes Bank 361.8 -0.9 1.4 19.7 18.5 ACTIVE CALLS ACTIVE PUTS Reliance Ind 14897.2 11.7
2 TCS 7961.4
UP 7 DAYS Coast Corp 40.5
3 HDFC Bank 5612.2 Tirupati Str 40.4
IndusInd Bank 1875.7 -1.6 2.0 - 29.6 Zee Enter 508.7 0.7 0.6 33.3 28.7 Raymond 8.5
Infosys 1416.2 0.4 5.5 19.1 19.0 Nifty 50 11676.8 È-0.1 100.0 21.6 24.3 MARKET OVERVIEW Expiry
Date
Strike Traded
Price
Open
Qty Interest
% Chg
(OI)
Expiry
Date
Strike Traded
Price
Open
Qty Interest
% Chg
(OI)
HDFC Bank
JSW Steel
11621.4
11339.3
5.6
28.3
4
5
ITC
HUL
3904.2
3834.3
Tata Chem 8.1 Lords Chloro 40.3
Shree Cement 6.4 Apollo Finv 40.2
INDEX PE Shrs Trds 1 Yr Index Index Yes Bank 10546.6 29.2 6 HDFC 3269.3
AGGREGATES TCS 3.4 DOWN 7 DAYS
S&P BSE SENSEX STOCKS Sensex
C/S
22.7/25.9 11.1
Mn ‘000
133
Adv Dec
15 16
return
22.3
Nifty Bank
Nifty
30/08/18
30/08/18
28100
11700
62.7
55.6
0.6
3.4
318.7
47.8
Nifty Bank
Nifty Bank
30/08/18
30/08/18
28000
27900
58.6
43.2
1.2
1.4
14.7
194.0
Axis Bank 9960.4 15.3 7 Infosys 3096.1
DOWN Optiemus Infr -24.1
Reliance Infra 8905.5 19.3 8 Maruti Suzuki 2782.9 Arrow green -22.7
Adani Ports 383.3 -0.6 0.7 22.0 35.0 Mah & Mah 982.4 0.1 2.4 15.3 25.3 Nifty 50 21.6/24.3 323.5 3644 23 27 18.1 Nifty Bank 30/08/18 28200 49.6 1.7 278.7 Nifty 30/08/18 11650 38.3 1.6 9.4 UP 3 DAYS
Infosys 8469.7 6.0 9 SBI 2750.1 Ok Play -22.3
Asian Paints 1376.0 -1.2 1.5 59.2 64.8 Maruti Suzuki 9212.4 -1.6 3.0 35.3 34.2 Nifty Bank 30/08/18 28000 33.5 0.0 -85.0 Nifty Bank 30/08/18 28100 33.1 0.4 -51.7 Bosch 17.4
10 Kotak Mah Bank 2432.9 Aarvee Den -15.4
Axis Bank 649.6 -1.1 3.0 366.0 - NTPC 169.2 1.9 1.3 13.3 13.5 Cash Derivatives Nifty Bank 30/08/18 28300 29.6 1.5 84.1 Nifty 30/08/18 11600 33.0 3.0 8.2 ITC 8306.2 26.1 Jain Irrig 10.5
TURNOVER BSE NSE BSE NSE 11 ONGC 2281.1 Lancer Cont Lin -15.3
Bajaj Auto 2701.8 0.5 1.0 17.7 18.4 ONGC 177.8 0.3 1.8 8.8 10.3 Stock Stock ICICI Bank 7885.6 23.0 Reliance Infra 10.0
12 ICICI Bank 2215.9 JK Paper -13.7
Bharti Airtel 382.6 2.1 1.2 74.8 - Power Grid 196.0 1.2 1.1 12.5 12.2 Value(In ~ Min) 27938 407812 - 1931286 SBI 30/08/18 310 72.1 5.6 6.5 SBI 30/08/18 305 19.6 2.2 11.3 Adani Enter 6777.3 30.0 Equitas Hold 9.5
13 L&T 1892.1 Jindal Steel 7.5 Swaraj Auto -13.2
Coal India 285.6 -0.5 0.9 21.0 19.0 Reliance Ind 1274.1 -1.6 10.6 22.1 23.6 Shares(In Mn) 194.9 1805.8 - 9315.4 ICICI Bank 30/08/18 350 31.9 6.4 48.0 Reliance Ind 30/08/18 1280 18.1 0.3 -76.6 Maruti Suzuki 6740.4 0.7 14 Coal India 1772.5 V Guard Inds 4.9 UP 3 DAYS
HDFC 1933.7 -0.8 8.0 20.1 25.5 SBI 308.2 -0.5 2.8 - - Trades(000) 1723 11686 - 8113 SBI 30/08/18 315 31.8 7.7 91.4 SBI 30/08/18 300 16.1 8.0 79.4 Tata Steel 6667.2 11.0 15 Bajaj Fin 1694.0 Firstsource 4.9
HDFC Bank 2067.2 -0.5 10.8 30.3 30.8 Sun Pharma 639.5 3.0 1.7 38.0 145.7 GMR Infra 30/08/18 20 26.2 10.0 -32.2 ICICI Bank 30/08/18 340 12.6 1.4 -18.5 Hind Nat Gl 52.4
SBI 6426.9 20.9 16 Axis Bank 1668.4
Hero MotoCorp 3221.4 -0.6 1.0 17.3 17.4 Tata Mot-DVR 138.6 -1.3 0.2 - - MARKET-CAP (~ billion) Traded Total ITC 30/08/18 320 25.7 1.9 -42.0 SBI 30/08/18 310 11.7 1.0 -69.8 DOWN Willim Magor 36.9
Infibeam Aven 6065.6 26.4 17Ç Sun Pharma 1534.4
HUL 1771.4 0.7 3.1 73.4 69.9 Tata Motors 259.7 -0.7 1.2 18.6 130.1 InterGlobe Avia -10.2 Alpine Hsg 35.2
BSE 159,014 160,615 Sun Pharma 5992.6 9.5 18 Bharti Airtel 1529.4
ICICI Bank 344.4 1.1 5.4 28.7 48.1 Tata Steel 608.3 2.4 1.1 3.7 11.5 Indiabulls Vent -7.2 ITI 23.5
NSE 157,419 158,671 Vedanta 5726.3 24.9 19È IOC 1501.4
TCS 2079.5 0.7 5.4 29.2 31.0 PTC India -6.4 Kirloskar Oil 23.1
IndusInd Bank
Infosys
1876.2
1417.5
-1.6
0.5
2.3
6.6
-
19.2
29.6
19.1 Vedanta 229.8 0.8 1.0 6.2 11.6
Derivatives 119,558 119,558 SPURT IN VOLUMES TCS 5393.5 2.6 20 HCL Techno 1415.7 Yes Bank -5.5 Empee Distil 23.1
Reliance Cap 5228.3 11.3 21 NTPC 1395.1 TV18 Broadcast -5.3
ITC
Kotak Mah Bank
319.2
1276.1
2.1
-0.9
9.5
4.1
34.0
37.8
34.0
58.0
Wipro
Yes Bank
298.9 0.6
361.9 -1.1
0.8
1.6
16.9 17.7
19.7 18.5
TRADING ACTIVITY Company Days
Volume
2-week Avg
Volume
Change Close
price
*Price
%chg HDFC 4877.6 2.5 22 Wipro 1352.0 Apollo Tyres -5.0
Asian Oilfld
DOWN 3 DAYS
21.4

(~ million) FIIs MF 23 Asian Paints 1319.8 Bharat Fin Incl -4.8

L&T 1349.6 -0.1 4.6 22.4 33.0 BSE SENSEX 38690.1 È-0.1 100.0 22.7 25.9 Bajaj Fin 4433.1 1.5 Chokhani Sec -14.2
Equity Debt Equity Debt Zodiac Jrd 298385.0 5839.5 5009.8 63.8 19.0 24 Hind Zinc 1257.0
Con = Consolidated; Std = Standalone Net Net Net Net UPL 4271.1 6.2 Waa Solar -14.2
Hind Nat Gl 306890.0 10375.9 2857.7 126.8 20.0 25 Mah & Mah 1221.3 OTHERS
GAIL 4095.1 10.9 Weizmann Ind -14.1
On 29 Aug -14036 2742 - - Willim Magor 512213.0 18077.9 2733.4 85.2 11.8 26 UltraTech 1216.3
IndusInd Bank 4073.7 2.2 UP 7 DAYS Kwality -14.1
WORLD INDICES On 28 Aug
On 27 Aug
-489
4358
-7102
2655
-1507
7394
23571
34729
Lambodhara T 687242.0 29972.2 2192.9 60.7 7.6
Jindal Steel 3769.3 16.9
27
28
IndusInd Bank
Bajaj Finsrv
1127.4
1102.5 Yamuna Syndicat 40.7 Bhagwati Oxy -14.1
ITI 15446771.0 1018322.1 1416.9 111.6 19.8 Kanchi Karpoora 40.6 Vivanta Inds -14.0
Indices Close % Chg* Indices Close % Chg* On 24 Aug -548 173 5378 27009 PNB 3592.0 42.3 29 Nestle India 1088.5
Mahindra Log 515800.0 35312.4 1360.7 575.2 3.2
On 23 Aug 4151 6897 2351 2371 30 Power Grid 1025.1 (T+2) cycleStocks which rose/fell continuously
Americas (Aug 29,18) Asia/Pacific (Aug 30,18) Emkay Global 421324.0 31278.1 1247.0 139.3 17.0
Aug till date 727 38014 38081 259909
Nasdaq Composite 8109.7 1.0 Taiwan Taiex 11093.8 -0.1 MTNL 12151476.0 905178.8 1242.4 16.5 10.4
2018 till date -33383 -368154 763159 1624649
United Bank 2903438.0 222204.1 1206.7 12.4 10.2
Dow Jones
S&P/ TSX Composite
26124.6
16390.3
0.2
0.2
Kuala Lumpur Comp
Kospi
1819.7
2307.4
-0.1
-0.1 FIIS IN DERIVATIVES Shalby 656976.0 50857.7 1191.8 158.4 6.4 BOARD MEETINGS INTRA-DAY
Europe/Africa (Aug 29,18) Stock Exchange of Thai 1720.4 -0.1 (~million) Index Stock Index Index Stock Note : A & B group stocks with the day’s trading volumes at over 100,000 shares, * % change over previous close AUGUST 31 approve any other Board Report for the year
NET Net Fut OI Opt OI OI Adroit info: to consider Business matter, with the ended 3lst March 2018.
CAC 40 5475.4 -0.5 Straits Times 3225.7 -0.6
FTSE 100 7506.7 -0.8 Jakarta Composite 6019.0 -0.8 On 29 Aug
On 28 Aug
-16907
-2286
5635
-1315
0.4
0.4
0.8
0.8
1.4
1.3
52 WEEK NEW HIGHS/LOWS and approve The Meeting
of Board of Directors of
permission of the Chair.
Chromatic: Approval of
Dion Global: to consider
and approve an enabling
IBEX 35 9482.6 -0.9 Shanghai Se Comp 2737.7 -1.1 Company Price Company Price Company Price Company Price the Company is scheduled Notice of the 31st Annual fund raising option includ-
On 27 Aug 1289 9377 0.4 0.8 1.3
DAX 12425.6 -1.1 Volatility (Aug 29,18) On 24 Aug -499 -3569 0.4 0.8 1.3 on Friday the 31st August, General Meeting of the ing but not limited to
HIGH *Radico Khatn . . . . . . . . 495.0 LOW *The Byke Hosp . . . . . . . . 94.7
Asia/Pacific (Aug 30,18) CBOE S&P 500 12.4 1.2 On 23 Aug 13057 -245 0.4 0.8 1.3 2018 at Company. Qualified Institutions
BS 200 *Kanchi Karpoora . . . . . 490.2 BS 200 SKCIL . . . . . . . . . . . . . . . . . 82.5
Nikkei 225 22869.5 0.1 CBOE Dow Jones 13.0 -0.8 Aug till date -18575 28627 - - - Anisha Impex: to consider Cian Agro: to consider Placement (QIP), Foreign
*Bajaj Fin . . . . . . . . . . . . 2995.1 *AJIL . . . . . . . . . . . . . . . . . 363.3 NONE Majestic Res . . . . . . . . . . 81.6
2018 till date 930292 513226 - - - and approve Board and approve the Annual Currency Convertible
Hang Seng 28164.1 -0.9 * Change over previous close *TCS . . . . . . . . . . . . . . . . 2080.2 *Tanfac Ind . . . . . . . . . . . 298.8 Others *Kapil Cotex . . . . . . . . . . . 79.0
OI in number of contracts(million) Meeting Report for the Financial Bond (FCCB), convertible
*Mah & Mah . . . . . . . . . . 992.0 *Sportking India . . . . . . 295.7 Vardhmn Text . . . . . . . 1091.0 Swastik Inv . . . . . . . . . . . . 69.3
Arihant Institu: to consid- Year ended 31st March, securities or any other
MAJOR INDICES S&P BSE SECTORAL INDICES
*Axis Bank . . . . . . . . . . . . 671.0
*JSW Steel . . . . . . . . . . . 408.7
*Vimta Labs . . . . . . . . . . 293.4
*Grandeur Prod . . . . . . 229.9
*eClerx Ser . . . . . . . . . . 1068.0
*Cochin Ship . . . . . . . . . 422.0
Geojit Financia . . . . . . . . . 67.1
*Balkrishna Pap . . . . . . . 63.0
er and approve To The 2018, including Notice of method
Department of Corporate ensuing Annual General Garnet Const: To decide
Previous Close Open High Low Close Change % chng ITC . . . . . . . . . . . . . . . . . . . 320.0 *Dalal Street . . . . . . . . . 217.5 Simplex Infr . . . . . . . . . . 390.0 Autoline Ind . . . . . . . . . . . 59.5
Services BSE Limited P. Meeting (AGM) and and approve draft Notice
S&P BSE Sensex 38,722.9 38,797.0 38,819.1 38,581.8 38,690.1 -32.8 -0.1 Prev close Close % Chg Others *City Union B . . . . . . . . . 205.0 *Centum Elec . . . . . . . . . 355.0 Womens Next Lou . . . . . . 56.6
J. Towers, Dalal Street, Director’’s Report,among convening Annual General
S&P BSE Sensex 50 12,240.6 12,263.7 12,269.8 12,194.0 12,225.1 -15.5 -0.1 Auto 24,839.6 24,756.8 -0.3 *3M India . . . . . . . . . . 26200.1 Captain Poly . . . . . . . . . . 183.0 *S Chand & Co . . . . . . . . 311.0 *Ledo Tea Co . . . . . . . . . . 43.8
Mumbai -4000 other business Meeting for the Financial
S&P BSE-100 12,009.1 12,031.5 12,037.2 11,974.1 12,003.9 -5.2 0.0 Bankex 31,917.0 31,794.2 -0.4 *Nat Perox . . . . . . . . . . 5437.9 *Globus Sprt . . . . . . . . . 178.9 Supreme Petroch . . . . . 256.2 Sampre Nutri . . . . . . . . . . 34.7
Capricorn Sy: to consider Confind Ptro: Notice Year ended 31st March,
S&P BSE-200 5,034.7 5,043.5 5,045.9 5,022.3 5,034.3 -0.4 0.0 Cons. Durables 21,659.5 21,604.1 -0.3 *Merck . . . . . . . . . . . . . . 3449.0 Greaves Cott . . . . . . . . . 164.6 *D B Corp . . . . . . . . . . . . . 224.0 Blue Circle . . . . . . . . . . . . . 31.0
and approve Draft Boards’ Calling 24th Annual 2018.
S&P BSE-500 15,816.5 15,843.4 15,850.5 15,782.9 15,819.7 3.2 0.0 Cap. Goods 18,818.2 18,801.3 -0.1 *Atul . . . . . . . . . . . . . . . . 3335.0 *Rel CNX100 . . . . . . . . . . 123.4 *Intrasoft T . . . . . . . . . . . 205.0 Chemo Pharma . . . . . . . . 29.8 (Twenty Crores) on a pref- proposal for seeking share- Integra Tele: to consider
Report on the activities of General Meeting of the H K Trade Intl: Meeting of
S&P BSE IPO 4,780.1 4,790.4 4,806.4 4,763.5 4,774.5 -5.5 -0.1 FMCG 12,578.0 12,717.7 1.1 *V-Mart Ret . . . . . . . . . 3298.0 *Shriram Asst . . . . . . . . 120.5 *Premier Expl . . . . . . . . 198.0 *V B Inds . . . . . . . . . . . . . . 28.1 erential issue basis. holders’’ approval through and approve Balance sheet
Healthcare 15,473.5 15,605.6 0.9 the Company for the Company the Board of Directors
S&P Dollex-30 4,515.2 - - - 4,491.6 -23.6 -0.5 *Hil . . . . . . . . . . . . . . . . . 2465.0 *Zenlabs Ethica . . . . . . . 118.7 PG Elect . . . . . . . . . . . . . . 162.2 Aarvee Den . . . . . . . . . . . . 27.7 2.Date, Day, Time Postal Ballot under section 31/03/2018 approval and
Infra 212.2 213.6 0.6 financial year Dazzel Conf: to consider Hilton Metal: to consider
Nifty 50 11,691.9 11,694.8 11,698.8 11,639.7 11,676.8 -15.1 -0.1 Nilkamal . . . . . . . . . . . . 2133.3 *Coast Corp . . . . . . . . . . 110.3 *Fluidomat . . . . . . . . . . . 142.1 *Morarje Text . . . . . . . . . . 25.8 and Venue of the 62(1)(c) of the Companies others Matter.
IT 15,288.2 15,337.3 0.3 CHD Chemicals: To con- and approve To approve and approve Fund raising
Nifty next50 30,982.0 31,002.7 31,175.2 30,938.4 31,097.4 115.4 0.4 *Zensar Tech . . . . . . . . 1665.0 *Delta Magn . . . . . . . . . . 109.0 *TD Power . . . . . . . . . . . . 126.5 *Dhanleela Inves . . . . . . . 25.1 Extra-Ordinary General Act, 2013 for Preferential JB Chemicals: to consider
Metal 13,800.2 13,908.4 0.8 sider the ratification of the Notice of 26th Annual by way of issue of
Nifty 500 9,973.7 9,979.4 9,986.4 9,947.0 9,975.2 1.5 0.0 *UTI Nifty-ETF . . . . . . . 1239.8 *RDB Rasayans . . . . . . . 107.8 *Hitech Corp . . . . . . . . 123.1 *Hipolin . . . . . . . . . . . . . . . 25.0 Meeting of the Issue of Capital to LIC, and approve the proposal
Oil & Gas 15,128.1 15,121.6 0.0 M/s. R K Deepak & CO as General Meeting for Optionally Convertible
India VIX 12.4 12.4 12.6 10.6 12.4 0.0 -0.2 *Satia Inds . . . . . . . . . . . 659.0 *TAHL . . . . . . . . . . . . . . . 107.2 Veritas . . . . . . . . . . . . . . . 122.7 *William Fin . . . . . . . . . . . 24.8 Shareholders and the aggregating upto 14.90% for Buy-back of fully paid-
Power 2,098.8 2,113.6 0.7 Statutory Auditor of the financial Year ended 31st Debentures (OCDs)
Nifty CPSE 2,369.2 2,370.0 2,390.9 2,363.0 2,375.0 5.8 0.2 *Sorilin Infra . . . . . . . . . 578.9 *Yash Chemex . . . . . . . . . 92.3 *EPC Ind . . . . . . . . . . . . . 113.2 *Bloom Dekor . . . . . . . . . . 23.5 Notice thereon. of the Bank’’s post issue up Equity Shares by the
PSU 7,831.5 7,862.1 0.4 Company. March, 2018; aggregating to
MCX SX 40 22,769.8 22,769.8 22,769.8 22,744.9 22,744.9 -24.9 -0.1 Realty 2,132.3 2,141.8 0.4 * Indicates that the market price of these companies reached two-year highs/lows. Chothani: to consider and Desh Rakshak: To approve ~20,00,00,000 IDBI Bank: Consider the paid up capital. Company.
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official
1
zz
MUMBAI | FRIDAY, 31 AUGUST 2018 STOCKS 17 <

> BS 200
WHAT THESE STOCK PAGES CONTAIN AND WHY Industry P/E, 3) Quarter on quarter EPS on the basis of consolidated earnings compares the prevailing price to BV. stock above the risk-adjusted market Open Interest: OI is the number of option becomes valueless while ABBREVIATIONS: When a significant SYMBOLS
FOR FACE
BSE NSE BSE NSE
growth (Q/Q), and, 4) Standalone EPS wherever available. RoNW is the ratio of net profit to return, given its level of risk measured contracts open at end of day in the futures contracts are compulsorily change occurs in the day’s closing VALUE OF
in the trailing twelve months (TTM). The industry P/E is the aggregate net worth, while RoCE is the ratio of by beta. It is the return given by a futures and options segment. OI thus settled on expiry. On NSE, it is the lastvalue compared with the previous SCRIPS ACC (A) Adani Enter (A) z
BS 200 stocks account for over 85 per also the price trend with highs/lows On Wednesdays: quarterly EPS for the market capitalisation of the industry PBDT to capital employed. Capital stock when the market index has zero indicates traders’ expectations. High Thursday of every month. close, the close price is underlined. PCLose (1614.40)(1613.50) (223.20) (223.30)
O ~100 Open 1618.00 1614.85 222.95 222.50
cent of the volume of shares, value (3-month and 52-week). last four quarters.On Thursdays; divided by the aggregate standalone employed is net worth plus total movement. A positive alpha indicates OI is typical when traders see a Put/call ratio: The ratio of open A significant change means a 3 per
P ~50 High 1630.00 1631.90 230.95 231.25
and trades on BSE and NSE. Routine The third sub-set of information is 1) Dividend yield %, 2) Payout ratio, net profit (trailing 12 months) of the long-term borrowings. High RoNW the stock performs better than continuing trend. interest in put options & call options. cent rise or fall in scrips whose market Low 1609.55 1608.15 220.00 219.80
information on other stocks are given on a particular stock’s one-year 3) Free float, and 4) FII stake. On industry, after excluding loss-making and high RoCE imply a business is expected, given its beta and vice- Market Lots: The designated value values are over 10 times paid-up Q ~20 Close 1624.35 1624.05 224.10 224.00
separately under Other Traded Stocks. return calculated on a point-to-point Fridays: 1) Book-value per share, companies. capital-efficient. versa. A high alpha value indicates of a single F&O contract. This differs FORMULAS: value or 15 per cent for the rest of X ~6 %Chng 0.62 0.65 0.40 0.31
Only NSE quotes are given in italics for basis for 1 month and 1 year followed 2) Price/book value, 3) Return on Net The market capitalisation is Standard deviation in the returns the stock has a strong trend from underlying to underlying. For Mean: Average of daily returns of a the shares. Shares 9865 969K 1572K 28403K
all other stocks. For the remaining by market cap. Worth (RoNW) and, 4) Return on shown in ~crore and is arrived at by of a stock measures the volatility of independent of the market’s moves. example, it is 50 Nifty and 25 Nifty scrip in the last 30 trading days. The letters H or L appended to  ~5 Trades 444 24593 10810 134299
stocks, we carry BSE quotes. In order to assess a scrip’s future Capital Employed (RoCE). On multiplying the closing prices of the stock over its trend. Beta indicates R Squared is the square of the Junior Standard Deviation: formula= sqrt prices indicate a new high or low in 4 ~4 PE 31.57 31.56 46.22 46.20
For BS 200 stocks, the company potential, the table contains ratios Saturdays, the focus is on the shares with equity capital. It changes how much the scrip moves for a unit coefficient of correlation between Strike Price: The price at which an (((n* åy2)- (å y * å y))/(n*n) the scrip; the letters XD after the 3 M H/L 1670/12551670/1256 237/101 237/101
T ~3 52 Wk H/L 1869/12551870/1256 237/101 237/101
name is followed by its BSE group in on valuation, profitability, strength, volatility of returns using: 1) Alpha, either because more shares have change in the index. A negative beta market returns and stock returns. It is option may be exercised. An option is Beta: formula ((n * å xy) - (å x* å traded quotes indicate that the scrip
has gone ex-dividend after that date; + ~2 1 M returns 6.36 6.16 14.60 14.61
brackets and the symbol indicating growth and efficiency. The idea is to 2) Beta, 3) Standard deviation, and been issued (or extinguished) or the indicates the share moves in a the percentage by which the market “in-the-money” if the market price y))/(n* å x2 - (å x * å x)), 1 Yr returns -9.80 -9.79 68.57 68.99
the paid-up value . Four categories get an understanding of why a share 4) Mean price has moved. Book value is net direction opposite to the market and influences an individual stock’s exceeds the SP (in case of a call Alpha: formula (å y/n) - (Beta * (å XB denotes ex-bonus, XR ex-rights; z ~1 Mcap 30504 30498 24647 24636
of information are provided : First, may be active and what is in store at DEFINITIONS: worth (equity capital plus reserves vice versa. The beta of the index is 1. movement. R Squared could range option) and the market price is below x/n)) where n is 30 trading days, y is å XO ex-indicator for other corporate Face value Book-value 498.21 498.21 137.20 137.20
the basic information on the day’s the counter. P/Es have been arrived at by and surplus minus accumulated Beta is used in conjunction with R from 0 to 1, where 1 would indicate SP (in case of a put). Otherwise it is (sum) of daily price returns of a scrip actions like AGM/EGM/ preference of scrips is Price/Bk-val 3.26 3.26 1.63 1.63
trading. Information is also given on In this segment, a new byte of dividing the day’s closing price by its losses) divided by the number of Squared to draw inferences of perfect correlation between the “out-of-money” for 30 trading days, x is å (sum) of shares/mergers and others . ~10 in all RoNW 9.88 9.88 5.02 5.02
M denotes volume of shares in cases if not RoCE 15.05 15.05 6.88 6.88
the number of shares traded, and the information is given every day: reported earning per share (EPS) for shares outstanding as reported by a volatility. market index and the stock and 0 Expiry date: The date on which a daily index returns (BSE Sensex for specified.
number of trading transactions, as On Tuesdays: 1) Cash P/E, 2) trailing 12 months. EPS is calculated company. Price to book value ratio Alpha is the excess return of the indicates no correlation. derivative expires . An unexercised BSE stocks and Nifty for NSE stocks) million, L in lakhs & K in ‘000’.

BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE BSE NSE
Adani Ports (A) + Adani Power (A) Ajanta Phar (A) + Allahabad Bk (A) Amara Raja (A) z Ambuja Cem (A) + Andhra Bank (A) Apollo Hosp (A)  Apollo Tyres (A) z Arvind (A) Ashok Leyland (A) z Asian Paints (A) z Aurob Pharma (A) z Axis Bank (A) + Bajaj Auto (A) Bajaj Fin (A) + Bajaj Finsrv (A)  Balkrishna I (A) +
PCLose (385.60) (385.90) (35.15) (35.25) (1230.80) (1233.15) (40.35) (40.45) (862.05) (861.70) (233.70) (233.15) PCLose (32.20) (32.30) (1193.85) (1193.45) (251.10) (250.50) (399.30) (399.40) (132.15) (131.90) (1392.00) (1394.00) PCLose (690.50) (690.40) (656.55) (656.90) (2689.20) (2689.10) (2984.05) (2985.50) (6969.35) (6968.55) (1423.80) (1425.00)
Open 390.00 386.20 35.35 35.70 1245.00 1237.40 40.90 41.05 862.00 861.30 237.50 233.35 Open 32.75 32.80 1200.45 1197.20 253.00 252.00 399.45 400.05 131.25 132.00 1394.00 1394.10 Open 690.50 691.00 660.10 661.85 2691.55 2700.00 2993.95 2993.90 6998.00 6969.00 1437.90 1433.50
High 390.00 389.20 35.80 35.80 1255.05 1254.95 42.40 42.35 862.00 864.70 240.40 240.45 High 33.80 33.90 1234.50 1234.40 253.00 252.00 404.55 403.65 132.70 132.70 1398.00 1398.70 High 698.00 698.75 671.00 661.85 2720.00 2722.50 2995.10 2993.90 6998.00 6993.70 1445.00 1448.00
Low 380.50 380.10 34.25 34.25 1232.55 1233.00 40.60 40.60 839.00 839.00 231.90 232.05 Low 32.45 32.45 1183.70 1183.35 248.80 248.70 398.00 397.50 130.55 130.55 1373.30 1373.55 Low 685.60 684.85 643.60 643.05 2684.75 2683.45 2921.60 2920.95 6901.00 6900.00 1396.55 1400.00
Close 383.30 383.75 34.50 34.45 1246.75 1249.65 41.80 41.85 843.10 842.50 238.25 237.90 Close 33.55 33.50 1192.00 1192.20 250.65 250.55 401.50 401.40 130.90 130.85 1375.95 1378.70 Close 688.25 687.00 649.55 649.75 2701.80 2701.65 2931.05 2926.75 6927.70 6929.90 1404.80 1403.85
%Chng -0.60 -0.56 -1.85 -2.27 1.30 1.34 3.59 3.46 -2.20 -2.23 1.95 2.04 %Chng 4.19 3.72 -0.15 -0.10 -0.18 0.02 0.55 0.50 -0.95 -0.80 -1.15 -1.10 %Chng -0.33 -0.49 -1.07 -1.09 0.47 0.47 -1.78 -1.97 -0.60 -0.55 -1.33 -1.48
Shares 190K 3567K 2234K 28248K 14479 230K 455K 8196K 19307 350K 152K 5026K Shares 264K 5372K 60199 1335K 108K 4947K 57932 1549K 580K 14271K 66036 1062K Shares 121K 4000K 462K 14869K 21297 583K 50418 1453K 7794 168K 44464 879K
Trades 2104 26914 4958 32076 616 7839 1444 16078 647 11376 1702 34572 Trades 920 9633 2077 36272 1282 30467 1011 19296 3097 40185 1579 31350 Trades 1941 58376 5546 142466 1254 29341 2610 88899 711 13113 1805 33261
PE 21.97 22.00 - - 21.87 21.92 - - 29.72 29.70 23.32 23.29 PE - - 64.24 64.25 16.16 16.15 32.11 32.10 21.10 21.09 59.24 59.35 PE 17.08 17.05 - - 17.67 17.67 58.85 58.77 32.28 32.29 33.26 33.24
3 M H/L 406/356 406/355 36/15 36/15 1265/898 1266/896 48/39 48/39 908/714 908/713 243/189 243/189 3 M H/L 38/29 38/29 1235/911 1234/910 300/247 300/246 439/371 439/371 152/105 152/105 1489/1243 1491/1240 3 M H/L 699/527 699/527 671/499 668/499 3214/2604 3195/2605 2995/2050 2994/2055 7200/5679 7200/5683 1467/1015 1454/1011
52 Wk H/L 452/350 452/350 48/15 48/15 1592/898 1595/896 89/37 89/37 908/665 908/665 291/189 292/189 52 Wk H/L 73/29 73/29 1262/911 1263/910 307/228 307/228 478/359 479/358 168/105 168/105 1489/1082 1491/1090 52 Wk H/L 809/527 809/527 671/448 668/448 3473/2604 3468/2605 2995/1514 2994/1511 7200/4444 7200/4500 1467/776 1454/777
1 M returns -4.20 -4.00 10.05 9.89 9.78 9.79 -8.43 -8.22 2.41 2.26 3.56 3.12 1 M returns -4.82 -4.69 25.06 25.24 -14.40 -14.43 -4.51 -4.59 16.05 16.00 -5.00 -5.01 1 M returns 16.17 16.14 18.08 18.05 0.04 0.06 8.62 8.48 -0.83 -0.68 16.26 16.23
1 Yr returns -2.33 -2.34 3.76 3.30 4.37 4.67 -39.46 -39.57 8.37 8.26 -15.09 -15.14 1 Yr returns -35.79 -36.01 10.00 10.12 -1.01 -1.12 8.76 8.28 22.28 22.18 17.79 17.98 1 Yr returns -5.10 -5.27 29.74 29.86 -3.80 -4.01 64.33 64.25 25.88 25.93 79.08 79.05
Mcap 79380 79473 13306 13287 10971 10997 4409 4414 14400 14390 47308 47239 Mcap 4022 4016 16583 16586 14337 14331 10384 10381 38426 38411 131981 132245 Mcap 40325 40251 166837 166888 78182 78178 169400 169152 110247 110282 27155 27136
Book-value 100.93 100.93 2.29 2.29 231.97 231.97 141.93 141.93 171.98 171.98 104.11 104.11 Book-value 94.81 94.81 263.65 263.65 170.87 170.87 146.27 146.27 25.28 25.28 87.68 87.68 Book-value 199.36 199.36 217.10 217.10 705.85 705.85 286.28 286.28 180.96 180.96 211.25 211.25
Price/Bk-val 3.80 3.80 15.04 15.02 5.37 5.39 0.29 0.29 4.90 4.90 2.29 2.29 Price/Bk-val 0.35 0.35 4.52 4.52 1.47 1.47 2.74 2.74 5.18 5.18 15.69 15.72 Price/Bk-val 3.45 3.45 2.99 2.99 3.83 3.83 10.24 10.22 38.28 38.30 6.65 6.65
RoNW 17.57 17.57 6.62 6.62 22.96 22.96 - - 16.05 16.05 7.34 7.34 RoNW 1.53 1.53 6.02 6.02 7.41 7.41 8.18 8.18 23.72 23.72 24.24 24.24 RoNW 20.75 20.75 6.60 6.60 20.66 20.66 16.16 16.16 4.91 4.91 18.02 18.02
RoCE 15.77 15.77 6.41 6.41 30.49 30.49 5.21 5.21 23.97 23.97 12.30 12.30 RoCE 5.87 5.87 8.36 8.36 8.24 8.24 9.36 9.36 16.13 16.13 34.90 34.90 RoCE 20.18 20.18 5.24 5.24 28.89 28.89 10.88 10.88 5.79 5.79 22.84 22.84

Balram Chini (A) z Bank of Baroda (A) + Bank of India (A) Bata India (A)  BEML (A) Berge Paint (A) z Bharat Elctn (A) z Bharat Fin Incl (A) Bharat Forge (A) + Bharti Airtel (A)  Bharti Infratel (A) BHEL (A) + Biocon (A)  Bosch (A) BPCL (A) Britannia (A) + Cadila Healt (A) z Can Fin Home (A) +
PCLose (74.10) (74.20) (147.35) (147.70) (95.10) (95.25) (1095.95) (1096.25) (822.25) (822.45) (342.75) (343.50) PCLose (114.90) (114.80) (1161.95) (1162.80) (665.35) (667.10) (374.85) (374.90) (283.75) (283.60) (80.65) (80.65) PCLose (614.25) (612.65) (20037.00) (20077.80) (361.30) (361.70) (6737.00) (6735.80) (386.75) (387.15) (317.25) (318.15)
Open 74.90 74.50 146.60 147.40 96.00 95.60 1096.75 1100.00 818.35 822.35 345.00 343.00 Open 115.00 115.00 1178.00 1167.00 669.95 669.00 375.00 377.30 282.00 282.30 80.75 80.60 Open 613.75 613.00 20202.00 20200.00 360.10 359.90 6737.00 6735.80 387.00 386.80 315.00 316.55
High 76.50 77.00 151.00 151.20 100.45 100.70 1102.45 1103.60 824.00 825.00 345.00 344.75 High 115.65 115.70 1178.00 1167.65 678.00 678.50 384.90 385.00 285.70 286.00 81.90 81.90 High 620.00 620.55 22395.10 22182.60 364.25 364.50 6775.45 6776.00 396.60 396.25 318.60 319.20
Low 73.60 73.60 145.75 145.65 94.00 93.85 1078.80 1079.30 811.55 811.00 336.00 335.80 Low 114.00 113.80 1140.00 1140.10 663.00 662.45 375.00 375.65 280.65 280.10 80.05 80.00 Low 604.60 603.15 20150.00 20155.05 358.00 357.85 6654.80 6565.20 384.20 384.00 312.00 315.00
Close 76.00 76.20 150.00 150.15 99.75 99.85 1088.10 1087.20 817.45 818.95 337.35 337.10 Close 114.35 114.20 1140.20 1142.70 670.05 669.00 382.60 383.10 284.10 284.40 80.70 80.85 Close 606.90 605.25 22015.55 22005.00 363.40 363.35 6694.90 6690.00 388.35 387.90 316.70 317.65
%Chng 2.56 2.70 1.80 1.66 4.89 4.83 -0.72 -0.83 -0.58 -0.43 -1.58 -1.86 %Chng -0.48 -0.52 -1.87 -1.73 0.71 0.28 2.07 2.19 0.12 0.28 0.06 0.25 %Chng -1.20 -1.21 9.87 9.60 0.58 0.46 -0.62 -0.68 0.41 0.19 -0.17 -0.16
Shares 322K 3074K 948K 15042K 1272K 14272K 37484 745K 32468 469K 34929 936K Shares 170K 4231K 134K 1461K 102K 1705K 126K 7027K 16220 2646K 645K 9499K Shares 39124 1319K 10558 134K 218K 4065K 6975 150K 212K 5005K 34921 666K
Trades 1233 10085 4026 55232 5015 47075 923 14220 955 10603 588 13279 Trades 1473 19530 424 23948 1972 30872 1931 77683 316 33771 2968 27407 Trades 1023 22250 3573 42674 1950 40564 1008 17116 2401 46385 779 11896
PE 9.94 9.96 - - - - 56.92 56.87 62.76 62.87 70.67 70.62 PE 19.17 19.14 25.16 25.22 40.69 40.63 74.77 74.87 21.29 21.32 33.62 33.68 PE 86.64 86.40 44.82 44.80 8.33 8.32 76.91 76.85 18.95 18.93 13.70 13.74
3 M H/L 78/60 78/60 157/110 158/110 105/76 105/77 1116/740 1116/739 953/737 949/737 349/273 350/272 3 M H/L 124/97 124/97 1249/1135 1235/1133 684/575 685/575 399/331 399/331 320/275 319/275 84/65 85/64 3 M H/L 695/544 697/543 22395/17170 22183/17152 429/354 429/354 6944/5719 6934/5711 422/333 423/333 397/306 397/308
52 Wk H/L 183/59 183/59 207/110 207/110 217/76 217/77 1116/657 1116/653 1947/737 1947/737 349/232 350/232 52 Wk H/L 193/97 193/97 1249/871 1235/871 800/561 798/560 565/331 565/331 482/275 483/275 108/65 108/64 52 Wk H/L 695/320 697/328 22600/16990 22700/16975 550/354 552/354 6944/4153 6934/4151 520/333 519/333 589/306 590/308
1 M returns 4.11 3.96 -2.24 -2.09 5.72 5.77 19.80 19.62 -8.92 -8.79 7.05 6.86 1 M returns -1.38 -1.85 -6.16 -5.92 4.53 4.43 -2.07 -1.92 -0.70 -0.78 9.13 9.18 1 M returns 3.54 3.21 17.73 17.54 -6.65 -6.77 2.52 2.26 1.84 1.69 -5.60 -5.08
1 Yr returns -55.84 -55.63 8.97 8.92 -30.68 -30.75 59.77 59.68 -53.62 -53.56 37.02 37.03 1 Yr returns -34.04 -33.88 29.73 29.95 18.94 18.64 -10.58 -10.43 -24.79 -24.20 -6.23 -5.91 1 Yr returns 79.72 79.60 -0.07 0.08 -31.24 -31.31 58.93 58.12 -22.35 -22.42 -44.66 -44.57
Mcap 1736 1740 39683 39722 17386 17404 13984 13973 3404 3410 32757 32732 Mcap 27863 27826 15967 16002 31198 31149 152941 153140 52547 52603 29628 29683 Mcap 36414 36315 67191 67159 78831 78820 80439 80380 39755 39709 4217 4230
Book-value 70.80 70.80 152.35 152.35 225.60 225.60 114.74 114.74 524.10 524.10 22.60 22.60 Book-value 30.82 30.82 214.13 214.13 99.91 99.91 174.11 174.11 91.72 91.72 88.07 88.07 Book-value 86.33 86.33 3267.56 3267.56 170.91 170.91 283.50 283.50 85.42 85.42 101.13 101.13
Price/Bk-val 1.07 1.08 0.98 0.99 0.44 0.44 9.48 9.48 1.56 1.56 14.93 14.92 Price/Bk-val 3.71 3.71 5.32 5.34 6.71 6.70 2.20 2.20 3.10 3.10 0.92 0.92 Price/Bk-val 7.03 7.01 6.74 6.73 2.13 2.13 23.62 23.60 4.55 4.54 3.13 3.14
RoNW 14.33 14.33 3.43 3.43 - - 14.95 14.95 3.88 3.88 21.00 21.00 RoNW 20.61 20.61 15.19 15.19 16.39 16.39 1.58 1.58 14.70 14.70 1.36 1.36 RoNW 7.19 7.19 13.75 13.75 24.30 24.30 29.48 29.48 20.31 20.31 22.41 22.41
RoCE 15.24 15.24 4.47 4.47 4.19 4.19 23.86 23.86 5.84 5.84 27.87 27.87 RoCE 27.06 27.06 10.98 10.98 16.57 16.57 6.36 6.36 21.08 21.08 4.77 4.77 RoCE 7.94 7.94 20.50 20.50 19.50 19.50 42.31 42.31 17.18 17.18 9.42 9.42

Canara Bank (A) Capital First (A) Castrol (A)  CEAT (A) Century Tex (A) CESC (A) CG Power (A) + Chennai Petr (A) Chola Inv (A) Cipla (A) + Coal India (A) Colgate (A) z Containr Crp (A)  Cummins (I) (A) + Dabur India (A) z Dalmia Bhar (A) + DCB Bank (A) Dewan Hsg (A)
PCLose (282.55) (282.05) (648.30) (648.90) (159.25) (159.25) (1417.15) (1417.30) (959.15) (960.20) (988.25) (988.80) PCLose (59.30) (59.10) (310.10) (310.25) (1446.00) (1447.75) (643.60) (643.50) (287.05) (286.30) (1150.20) (1151.20) PCLose (640.10) (640.70) (776.35) (776.80) (477.80) (477.80) (2617.75) (2619.40) (173.65) (174.00) (664.85) (666.45)
Open 283.70 281.00 653.90 653.00 160.00 159.00 1420.40 1417.90 963.00 967.40 1012.35 1011.90 Open 59.50 59.30 311.95 311.30 1451.85 1448.25 660.00 645.00 287.70 286.45 1157.40 1153.00 Open 644.50 641.50 776.30 779.40 477.80 477.80 2618.05 2620.00 175.10 175.05 667.90 668.00
High 289.10 289.30 662.25 663.40 160.60 160.40 1437.50 1438.00 969.90 970.00 1029.95 1029.75 High 60.05 60.10 313.55 313.80 1467.00 1471.00 660.00 651.90 290.40 290.55 1158.45 1159.00 High 646.40 646.00 781.20 781.30 484.00 484.35 2660.00 2663.90 175.65 175.90 674.85 674.20
Low 278.30 278.25 650.00 650.05 157.60 157.35 1402.40 1397.00 956.80 955.50 1001.00 999.85 Low 58.75 58.65 306.50 306.40 1438.80 1436.40 641.30 640.50 283.00 284.60 1149.00 1148.00 Low 630.15 630.50 758.35 770.20 477.15 475.40 2601.00 2611.55 173.50 173.25 657.30 657.40
Close 286.15 286.15 652.30 655.30 158.05 157.95 1408.15 1404.05 960.70 960.75 1004.95 1004.05 Close 59.65 59.70 311.70 311.60 1462.30 1462.75 648.65 649.45 285.55 285.60 1151.45 1153.45 Close 632.35 632.70 775.85 777.85 479.80 479.90 2646.30 2652.05 174.95 175.10 665.80 665.35
%Chng 1.27 1.45 0.62 0.99 -0.75 -0.82 -0.64 -0.93 0.16 0.06 1.69 1.54 %Chng 0.59 1.02 0.52 0.44 1.13 1.04 0.78 0.92 -0.52 -0.24 0.11 0.20 %Chng -1.21 -1.25 -0.06 0.14 0.42 0.44 1.09 1.25 0.75 0.63 0.14 -0.17
Shares 263K 6760K 76805 1751K 117K 1089K 30199 663K 66163 835K 109K 1582K Shares 246K 2241K 17612 344K 2718 251K 139K 2124K 117K 3861K 190K 297K Shares 158K 585K 17512 391K 89689 3134K 1778 67610 24035 983K 165K 4236K
Trades 2293 49254 1635 26667 1161 14191 1144 19488 1322 16927 3038 37109 Trades 963 5565 361 4479 202 10386 2000 36539 1670 35482 1069 8670 Trades 511 20266 907 9087 1651 56576 252 4988 316 11011 2772 25339
PE - - 17.85 17.93 21.69 21.67 18.78 18.72 25.92 25.92 15.22 15.21 PE - - 4.48 4.48 23.44 23.45 36.34 36.38 20.96 20.97 43.11 43.18 PE 29.13 29.15 32.13 32.22 59.60 59.61 44.53 44.63 21.65 21.67 15.51 15.50
3 M H/L 302/220 302/217 662/475 663/475 183/153 184/153 1455/1229 1455/1227 976/843 977/843 1048/870 1049/870 3 M H/L 77/47 76/47 345/266 345/267 1650/1404 1650/1412 678/518 678/517 303/256 303/257 1262/1068 1269/1068 3 M H/L 699/600 700/599 789/612 790/613 491/366 491/366 2800/2174 2805/2179 187/156 188/156 685/575 685/581
52 Wk H/L 463/220 464/217 902/475 902/475 214/153 214/153 2030/1229 2019/1227 1472/843 1471/843 1189/860 1190/861 52 Wk H/L 99/47 99/47 477/262 481/262 1761/1053 1760/1052 678/508 678/507 317/237 317/236 1285/1017 1282/1015 52 Wk H/L 750/582 750/584 993/612 984/613 491/299 491/299 3349/2174 3350/2179 207/155 207/155 685/460 685/469
1 M returns 0.60 0.58 19.79 20.64 -8.96 -9.41 1.51 1.32 4.94 4.88 6.31 6.30 1 M returns -6.80 -6.79 -0.72 -1.10 2.09 2.24 1.39 1.26 9.11 9.38 0.90 0.72 1 M returns -5.54 -5.47 15.07 15.49 14.17 13.84 -0.29 0.24 6.51 6.87 10.73 10.80
1 Yr returns -15.64 -15.78 -9.77 -9.40 -18.74 -18.75 -17.44 -17.68 -22.51 -22.51 -1.06 -1.15 1 Yr returns -25.67 -25.69 -30.21 -30.50 25.92 25.79 13.46 13.56 19.98 20.30 3.58 3.68 1 Yr returns -4.03 -4.13 -15.03 -14.77 52.27 52.30 -2.53 -2.25 -4.76 -4.68 31.83 31.70
Mcap 20982 20982 6461 6491 15633 15623 5696 5679 10731 10732 13322 13310 Mcap 3739 3742 4642 4640 22863 22870 52229 52294 177253 177284 31319 31374 Mcap 30823 30840 21507 21562 84747 84765 23592 23643 5405 5409 20893 20879
Book-value 496.90 496.90 264.26 264.26 10.31 10.31 629.62 629.62 246.01 246.01 801.35 801.35 Book-value 65.46 65.46 268.42 268.42 330.32 330.32 176.72 176.72 31.97 31.97 56.05 56.05 Book-value 180.66 180.66 143.80 143.80 32.31 32.31 556.91 556.91 71.32 71.32 280.29 280.29
Price/Bk-val 0.58 0.58 2.47 2.48 15.32 15.31 2.24 2.23 3.91 3.91 1.25 1.25 Price/Bk-val 0.91 0.91 1.16 1.16 4.43 4.43 3.67 3.68 8.93 8.93 20.54 20.58 Price/Bk-val 3.50 3.50 5.40 5.41 14.85 14.85 4.75 4.76 2.45 2.46 2.38 2.37
RoNW 3.08 3.08 12.51 12.51 67.81 67.81 10.94 10.94 13.53 13.53 6.50 6.50 RoNW 5.53 5.53 23.20 23.20 18.89 18.89 9.91 9.91 35.37 35.37 44.17 44.17 RoNW 9.72 9.72 17.77 17.77 23.73 23.73 6.94 6.94 9.06 9.06 13.33 13.33
RoCE 5.71 5.71 7.71 7.71 105.01 105.01 15.73 15.73 14.81 14.81 10.20 10.20 RoCE 8.81 8.81 21.40 21.40 10.23 10.23 9.68 9.68 52.19 52.19 64.48 64.48 RoCE 13.46 13.46 21.79 21.79 26.23 26.23 11.62 11.62 6.49 6.49 9.19 9.19

Dish TV (A) z Divis Lab (A) + DLF (A) + Dr Reddys (A)  Eicher Motor (A) Enginers Ind (A)  Equitas Hold (A) Escorts (A) Exide Ind (A) z Federal Bank (A) + GAIL (A) Glenmark (A) z GMR Infra (A) z Godrej Cons (A) z Godrej Ind (A) z Granules (A) z Grasim Ind (A) + GSFC (A) +
PCLose (70.80) (71.05) (1276.00) (1276.75) (217.50) (217.50) (2385.55) (2383.85) (28219.25) (28188.75) (124.55) (124.55) PCLose (158.25) (158.10) (891.10) (894.80) (289.90) (290.10) (80.90) (80.85) (367.05) (367.45) (645.40) (647.55) PCLose (19.80) (19.75) (1439.90) (1443.35) (628.30) (630.05) (112.20) (112.40) (1073.95) (1075.00) (119.05) (119.10)
Open 70.70 70.65 1277.75 1280.10 218.50 217.85 2390.00 2385.00 28220.00 28400.00 124.75 124.55 Open 157.30 157.75 895.00 894.80 286.25 290.00 81.30 81.20 371.90 369.30 650.00 649.50 Open 20.00 19.90 1444.00 1437.40 629.00 630.30 112.25 112.50 1076.00 1075.00 120.00 119.95
High 71.30 71.75 1307.75 1307.00 223.40 223.50 2414.85 2417.95 28481.95 28489.90 128.40 128.50 High 161.15 161.15 897.50 898.70 291.55 291.80 82.05 82.20 379.15 379.50 661.90 664.00 High 20.30 20.25 1448.35 1448.00 635.10 634.00 113.60 114.15 1080.00 1080.80 121.00 121.00
Low 70.45 70.45 1267.00 1266.75 215.00 214.80 2350.50 2375.05 27552.10 27551.95 124.30 124.20 Low 154.45 154.25 877.00 876.05 283.55 283.80 80.40 80.30 364.50 364.30 644.00 643.70 Low 19.55 19.55 1431.25 1430.65 625.75 625.80 110.60 110.60 1064.35 1063.40 118.80 118.70
Close 70.75 71.00 1301.15 1300.85 221.30 221.10 2380.15 2380.15 27602.85 27602.15 127.65 127.70 Close 158.75 159.00 880.10 879.15 284.40 284.45 80.85 80.85 XDO376.15 376.20 657.90 659.65 Close 20.00 20.00 1440.85 1440.70 628.55 629.70 112.40 112.70 1074.95 1074.00 120.55 120.55
%Chng -0.07 -0.07 1.97 1.89 1.75 1.66 -0.23 -0.16 -2.18 -2.08 2.49 2.53 %Chng 0.32 0.57 -1.23 -1.75 -1.90 -1.95 -0.06 0.00 2.48 2.38 1.94 1.87 %Chng 1.01 1.27 0.07 -0.18 0.04 -0.06 0.18 0.27 0.09 -0.09 1.26 1.22
Shares 85352 7017K 22994 1029K 743K 11204K 37315 1079K 3221 61340 148K 2884K Shares 142K 5420K 43948 1292K 71264 3323K 870K 18823K 239K 10677K 80852 1132K Shares 1804K 35917K 10827 880K 13826 150K 136K 1993K 71023 1531K 153K 1847K
Trades 384 6103 725 25796 4803 66526 1507 46853 1167 19410 1184 14866 Trades 1605 28961 1118 28165 1177 23646 4194 37065 3236 84161 1780 18923 Trades 3233 15608 606 29086 330 3296 845 8691 567 26007 1213 12572
PE 106.57 106.95 36.01 36.00 8.70 8.69 29.13 29.13 36.25 36.25 21.06 21.06 PE 172.68 172.95 26.78 26.76 35.07 35.08 17.19 17.19 17.48 17.48 26.39 26.46 PE - - 54.12 54.12 30.90 30.96 19.35 19.40 18.45 18.43 9.49 9.49
3 M H/L 76/65 76/65 1317/995 1319/995 223/168 224/168 2519/1934 2520/1926 31425/26670 31499/26601 139/118 139/118 3 M H/L 169/132 169/131 958/823 959/821 305/246 305/245 93/74 93/74 399/316 399/316 666/513 666/514 3 M H/L 20/15 20/15 1460/1126 1462/1123 657/566 658/566 117/72 117/72 1092/915 1094/914 123/100 123/100
52 Wk H/L 87/64 87/64 1317/691 1319/692 274/158 274/158 2612/1888 2615/1887 33484/26000 33480/26208 206/118 206/118 52 Wk H/L 184/130 184/129 1019/607 1018/605 305/193 305/192 128/74 128/74 399/280 399/279 666/484 666/494 52 Wk H/L 25/15 25/15 1460/890 1462/888 658/502 658/513 151/72 150/72 1300/915 1300/914 166/100 166/100
1 M returns 7.69 7.84 13.52 13.17 12.82 12.63 11.89 11.86 -0.78 -0.71 -6.17 -6.06 1 M returns 13.15 13.22 -5.08 -5.27 1.73 1.68 -9.41 -9.16 0.39 0.28 13.07 13.39 1 M returns 12.99 12.68 9.27 9.40 -3.03 -2.92 9.02 9.58 4.69 4.76 3.30 3.34
1 Yr returns -11.23 -10.69 86.73 86.80 19.59 19.48 17.81 17.78 -12.10 -12.24 -17.94 -17.88 1 Yr returns -9.34 -9.27 36.13 35.82 44.40 44.50 -25.45 -25.38 32.58 32.60 8.06 8.30 1 Yr returns 16.28 16.28 55.22 55.03 2.07 2.83 -12.05 -11.75 -9.88 -10.14 -17.26 -17.35
Mcap 13027 13073 34539 34531 39488 39452 39515 39515 75273 75271 8066 8070 Mcap 5414 5422 10788 10777 24174 24178 16009 16009 84824 84836 18566 18615 Mcap 12072 12072 98180 98169 21144 21183 2856 2864 70689 70626 4804 4804
Book-value 1.48 1.48 223.20 223.20 137.71 137.71 757.23 757.23 2577.95 2577.95 45.02 45.02 Book-value 66.75 66.75 162.48 162.48 63.87 63.87 45.16 45.16 184.82 184.82 159.20 159.20 Book-value 9.52 9.52 91.34 91.34 116.20 116.20 51.33 51.33 477.29 477.29 165.00 165.00
Price/Bk-val 47.71 47.88 5.83 5.83 1.61 1.61 3.14 3.14 10.71 10.71 2.84 2.84 Price/Bk-val 2.38 2.38 5.42 5.41 4.45 4.45 1.79 1.79 2.04 2.04 4.13 4.14 Price/Bk-val 2.10 2.10 15.77 15.77 5.41 5.42 2.19 2.20 2.25 2.25 0.73 0.73
RoNW 59.58 59.58 14.80 14.80 2.91 2.91 7.53 7.53 27.88 27.88 11.60 11.60 RoNW 1.38 1.38 6.59 6.59 12.73 12.73 9.29 9.29 11.51 11.51 24.68 24.68 RoNW 0.13 0.13 26.26 26.26 10.78 10.78 10.17 10.17 10.09 10.09 6.38 6.38
RoCE 126.83 126.83 20.60 20.60 7.30 7.30 8.30 8.30 40.40 40.40 18.13 18.13 RoCE 5.63 5.63 10.67 10.67 21.12 21.12 5.74 5.74 15.84 15.84 18.76 18.76 RoCE 8.41 8.41 22.76 22.76 9.42 9.42 10.03 10.03 13.74 13.74 5.96 5.96

Havells I (A) z HCC (A) z HCL Techno (A) + HDFC (A) + HDFC Bank (A) + Hero MotoCorp (A) + Hexaware Tch (A) + Hind Zinc (A) + Hindalco (A) z HPCL (A) HUL (A) z ICICI Bank (A) + ICICI Prud Life (A) IDBI Bank (A) Idea Cellular (A) IDFC (A) IDFC Bank (A) India Cement (A)
PCLose (714.60) (714.00) (14.64) (14.65) (1033.40) (1032.85) (1950.15) (1956.25) (2078.45) (2078.50) (3239.85) (3246.10) PCLose (430.95) (431.55) (299.25) (298.45) (237.00) (236.85) (257.70) (257.70) (1759.00) (1755.85) (340.65) (340.65) PCLose (382.15) (382.55) (60.90) (60.95) (49.50) (49.55) (52.70) (52.75) (48.15) (48.25) (121.30) (121.40)
Open 710.20 710.00 14.70 14.70 1032.00 1029.00 1950.00 1950.00 2078.45 2083.60 3232.75 3227.00 Open 435.00 433.60 300.00 300.00 237.65 238.60 257.05 257.70 1750.00 1755.00 339.90 339.20 Open 381.50 382.65 60.80 60.80 49.70 49.65 53.25 52.55 48.50 48.45 121.35 121.40
High 721.00 722.00 15.00 15.25 1032.05 1032.90 1962.95 1964.45 2086.95 2087.90 3250.00 3255.00 High 435.00 434.95 300.75 300.65 241.50 241.60 257.05 257.70 1778.90 1779.80 345.45 345.45 High 384.00 384.00 61.45 61.45 50.40 50.35 53.45 53.55 49.20 49.25 127.20 127.20
Low 705.90 706.05 14.10 14.35 1013.00 1013.55 1927.25 1928.25 2060.00 2061.85 3201.15 3210.05 Low 426.00 425.45 295.05 294.35 235.70 235.70 251.80 251.60 1750.00 1755.00 337.70 337.70 Low 375.85 375.50 60.30 60.25 48.85 48.80 52.25 52.20 48.15 48.10 120.70 120.15
Close 719.10 719.35 14.52 14.60 1016.65 1016.55 1933.65 1934.15 2067.15 2066.10 3221.35 3223.70 Close 432.70 432.80 297.50 296.90 240.20 240.25 253.10 253.05 1771.35 1772.85 344.40 344.35 Close 378.25 377.10 60.90 60.95 49.85 49.85 52.75 52.85 48.70 48.55 125.75 125.80
%Chng 0.63 0.75 -0.82 -0.34 -1.62 -1.58 -0.85 -1.13 -0.54 -0.60 -0.57 -0.69 %Chng 0.41 0.29 -0.58 -0.52 1.35 1.44 -1.79 -1.80 0.70 0.97 1.10 1.09 %Chng -1.02 -1.42 0.00 0.00 0.71 0.61 0.09 0.19 1.14 0.62 3.67 3.62
Shares 38798 1053K 1016K 10291K 53159 2442K 49872 2466K 161K 5457K 13212 381K Shares 191K 3830K 42096 1774K 430K 9911K 338K 10854K 31842 1587K 695K 22349K Shares 31426 1010K 1744K 11968K 3335K 46298K 360K 10481K 672K 14851K 843K 12905K
Trades 891 21066 1200 8403 1433 58625 1644 89377 4027 133557 1645 38451 Trades 5864 92271 600 11823 2600 51797 6412 101134 1328 65741 5810 125258 Trades 1020 26571 2784 18483 4433 46100 1045 17718 1790 26195 4461 55965
PE 56.12 56.14 34.07 34.26 15.83 15.83 20.13 20.13 30.85 30.83 17.42 17.43 PE 23.31 23.31 13.67 13.64 34.56 34.57 5.39 5.39 69.94 70.00 48.08 48.07 PE 36.31 36.20 - - - - 14.28 14.31 19.29 19.23 40.86 40.88
3 M H/L 727/521 727/520 16/9 16/9 1046/880 1047/880 2051/1798 2053/1797 2219/2010 2220/2009 3819/3037 3712/3034 3 M H/L 557/401 558/401 308/261 306/261 255/193 256/192 325/251 325/251 1808/1547 1809/1547 346/257 346/257 3 M H/L 430/347 430/347 67/47 67/47 66/48 66/48 53/43 54/43 49/36 49/36 134/97 134/97
52 Wk H/L 727/454 727/450 45/9 45/9 1107/825 1108/825 2051/1638 2053/1638 2219/1685 2220/1738 4090/3037 4092/3034 52 Wk H/L 557/259 558/259 340/261 340/261 284/193 284/192 493/251 493/251 1808/1169 1809/1169 366/256 366/255 52 Wk H/L 462/347 462/347 90/47 92/47 118/48 119/48 68/43 68/43 70/36 70/36 206/97 206/97
1 M returns 13.38 13.39 23.68 24.79 5.37 5.33 -3.06 -3.04 -5.22 -5.20 -2.20 -2.15 1 M returns -6.93 -6.96 6.17 6.02 12.56 12.58 -11.13 -11.15 2.30 2.38 13.31 13.18 1 M returns -9.48 -9.90 3.48 3.57 -9.20 -9.12 12.96 13.05 21.75 21.25 7.43 7.48
1 Yr returns 47.25 47.30 -58.22 -57.93 17.95 17.48 8.91 8.85 16.46 16.30 -19.43 -19.31 1 Yr returns 58.56 58.42 0.81 0.80 0.90 0.95 -48.13 -48.18 45.51 45.35 15.71 15.53 1 Yr returns -11.44 -11.67 10.53 10.62 -45.22 -45.01 -3.21 -2.94 -11.45 -11.49 -29.23 -29.33
Mcap 44980 44995 1475 1483 141569 141555 326932 327016 561221 560936 64330 64377 Mcap 12845 12848 125703 125449 53932 53943 38568 38560 383426 383751 221592 221560 Mcap 54300 54135 25463 25484 21734 21734 8421 8437 16578 16527 3891 3892
Book-value 59.62 59.62 - - 261.30 261.30 511.55 511.55 329.52 329.52 599.47 599.47 Book-value 67.62 67.62 85.04 85.04 205.13 205.13 167.56 167.56 33.64 33.64 155.33 155.33 Book-value 47.79 47.79 - - 56.73 56.73 70.93 70.93 - - 167.26 167.26
Price/Bk-val 12.06 12.07 - - 3.89 3.89 3.78 3.78 6.27 6.27 5.37 5.38 Price/Bk-val 6.40 6.40 3.50 3.49 1.17 1.17 1.51 1.51 52.66 52.71 2.22 2.22 Price/Bk-val 7.92 7.89 - - 0.88 0.88 0.74 0.75 - - 0.75 0.75
RoNW 17.76 17.76 2.79 2.79 23.97 23.97 18.79 18.79 16.26 16.26 31.08 31.08 RoNW 24.89 24.89 25.82 25.82 4.12 4.12 28.27 28.27 71.61 71.61 9.81 9.81 RoNW 23.60 23.60 - - - - 5.21 5.21 - - 2.92 2.92
RoCE 25.78 25.78 8.36 8.36 30.02 30.02 10.33 10.33 6.28 6.28 43.62 43.62 RoCE 31.99 31.99 35.57 35.57 8.68 8.68 22.59 22.59 100.52 100.52 5.72 5.72 RoCE 27.10 27.10 - - 3.98 3.98 6.90 6.90 - - 7.55 7.55

Indiabulls Hous (A) + Indian Bank (A) Indraprst Gs (A) + IndusInd Bank (A) Infibeam Aven (A) z Infosys (A)  InterGlobe Avia (A) IOC (A) IRB Infra (A) ITC (A) z Jain Irrig (A) + Jet Airways (A) Jindal Steel (A) z JP Associat (A) + JSW Steel (A) z Jubilant Fd (A) Just Dial (A) Kajaria Cer (A) z
PCLose (1280.70) (1280.60) (327.35) (327.40) (288.25) (288.10) (1907.15) (1905.55) (233.30) (233.15) (1410.35) (1410.10) PCLose (969.55) (966.80) (156.50) (156.50) (192.95) (192.50) (312.70) (312.80) (82.75) (82.95) (291.70) (291.30) PCLose (217.20) (217.55) (11.11) (11.10) (399.00) (399.00) (1550.60) (1549.15) (551.45) (551.55) (491.15) (492.25)
Open 1278.40 1280.60 325.70 327.80 288.20 290.60 1903.00 1900.10 231.85 233.00 1411.00 1412.80 Open 970.00 961.00 156.40 155.70 193.75 192.35 314.55 313.50 83.70 83.50 289.90 288.00 Open 218.00 218.00 11.24 11.15 399.90 398.00 1554.00 1550.00 553.00 552.00 495.00 495.00
High 1279.95 1282.40 334.45 334.65 293.90 294.20 1905.00 1907.45 236.45 236.90 1423.00 1421.55 High 970.00 964.30 156.40 155.95 194.05 194.15 320.00 320.60 86.45 86.40 289.90 289.90 High 227.40 227.75 12.05 12.05 408.65 408.80 1563.00 1562.40 561.20 561.30 499.25 496.25
Low 1260.00 1256.00 320.00 322.75 287.00 286.65 1868.00 1867.00 224.95 225.55 1397.00 1396.15 Low 921.30 920.50 154.00 153.90 190.00 189.35 314.00 313.50 83.65 83.50 281.55 281.45 Low 215.55 215.50 10.96 11.05 393.20 393.15 1525.45 1522.30 552.40 552.00 473.40 473.00
Close 1263.70 1262.30 333.25 333.85 290.95 290.50 1876.20 1875.65 228.05 228.65 1417.50 1416.20 Close 941.15 940.70 154.60 154.25 190.50 190.20 319.20 319.85 85.55 85.60 286.75 286.95 Close 222.70 222.75 11.79 11.75 397.25 397.90 1531.80 1526.05 556.25 555.80 474.85 474.25
%Chng -1.33 -1.43 1.80 1.97 0.94 0.83 -1.62 -1.57 -2.25 -1.93 0.51 0.43 %Chng -2.93 -2.70 -1.21 -1.44 -1.27 -1.19 2.08 2.25 3.38 3.19 -1.70 -1.49 %Chng 2.53 2.39 6.12 5.86 -0.44 -0.28 -1.21 -1.49 0.87 0.77 -3.32 -3.66
Shares 42902 1096K 88252 1289K 80664 2974K 42830 2125K 1646K 24777K 245K 5754K Shares 138K 3609K 344K 6851K 182K 1960K 1118K 24973K 1212K 11749K 518K 6361K Shares 1206K 15700K 14065K 105766K 1163K 27090K 28154 1640K 62507 1248K 65474 1098K
Trades 866 32052 998 16423 1514 36046 2388 80358 6542 77683 5388 96074 Trades 4329 110400 2934 54255 969 14471 9567 159658 3938 37992 4462 52249 Trades 7697 106335 100433 148410 14774 195694 936 34871 984 17931 1652 28762
PE 13.11 13.09 14.61 14.63 29.71 29.67 29.63 29.62 162.83 163.26 19.16 19.15 PE 24.80 24.78 6.35 6.34 7.18 7.17 34.00 34.07 16.36 16.37 - - PE - - - - 12.27 12.29 78.58 78.29 26.12 26.10 32.40 32.36
3 M H/L 1397/1102 1397/1106 380/305 380/305 320/240 321/241 2038/1868 2038/1867 239/146 239/147 1439/1210 1438/1210 3 M H/L 1257/891 1256/891 177/150 177/150 243/184 243/184 320/259 321/259 106/72 106/72 430/262 429/258 3 M H/L 251/177 251/177 18/11 18/11 409/294 409/294 1575/1236 1578/1235 605/506 605/506 572/405 572/406
52 Wk H/L 1439/1080 1440/1081 428/254 427/253 344/240 345/241 2038/1573 2038/1572 239/87 239/87 1439/874 1438/874 52 Wk H/L 1520/891 1520/891 231/150 231/150 286/184 286/184 320/250 321/250 150/72 150/72 884/262 883/258 52 Wk H/L 294/132 294/132 27/11 27/11 409/229 409/230 1575/653 1578/653 648/358 647/358 768/405 768/406
1 M returns -2.79 -2.68 -6.97 -6.67 -4.18 -4.43 -5.93 -5.99 27.12 27.17 3.85 3.74 1 M returns 1.30 1.18 -5.99 -6.15 -5.13 -5.33 7.40 7.44 4.97 4.91 -7.11 -7.14 1 M returns 8.63 8.42 -20.34 -20.34 20.42 20.43 8.94 8.62 -0.70 -0.84 7.06 6.84
1 Yr returns 3.93 3.85 16.34 16.57 13.87 13.87 13.26 13.21 53.57 52.79 54.87 54.78 1 Yr returns -23.14 -23.41 -31.89 -32.15 -11.09 -11.16 13.11 13.32 -13.28 -13.14 -50.32 -50.40 1 Yr returns 62.38 62.47 -50.67 -50.84 55.94 56.41 120.11 118.87 42.35 42.04 -32.29 -32.43
Mcap 53922 53862 16006 16034 20367 20335 112743 112710 15129 15169 309610 309326 Mcap 36179 36161 150145 149805 6695 6685 390423 391218 4246 4249 3257 3260 Mcap 21555 21560 2868 2858 96023 96180 20215 20139 3750 3747 7550 7541
Book-value 284.09 284.09 357.33 357.33 43.02 43.02 343.33 343.33 11.80 11.80 297.24 297.24 Book-value 183.96 183.96 117.25 117.25 150.00 150.00 42.93 42.93 83.77 83.77 - - Book-value 310.47 310.47 15.66 15.66 115.83 115.83 61.02 61.02 134.26 134.26 86.58 86.58
Price/Bk-val 4.45 4.44 0.93 0.93 6.76 6.75 5.46 5.46 19.33 19.38 4.77 4.76 Price/Bk-val 5.12 5.11 1.32 1.32 1.27 1.27 7.44 7.45 1.02 1.02 - - Price/Bk-val 0.72 0.72 0.75 0.75 3.43 3.44 25.10 25.01 4.14 4.14 5.48 5.48
RoNW 23.98 23.98 8.19 8.19 20.13 20.13 13.90 13.90 5.64 5.64 24.69 24.69 RoNW 31.71 31.71 19.49 19.49 13.57 13.57 21.46 21.46 4.08 4.08 - - RoNW 8.45 8.45 - - 22.19 22.19 7.17 7.17 13.41 13.41 18.33 18.33
RoCE 10.45 10.45 5.79 5.79 30.05 30.05 6.61 6.61 6.65 6.65 31.22 31.22 RoCE 37.17 37.17 21.09 21.09 12.09 12.09 32.93 32.93 8.49 8.49 16.81 16.81 RoCE 0.80 0.80 3.88 3.88 16.99 16.99 10.96 10.96 17.29 17.29 27.80 27.80

Karnataka Bk (A) Kaveri Seed (A) + Kotak Mah Bank (A)  KPIT Technologi (A) + L & T (A) + L&T Finance Hol (A) LIC Hsg Fin (A) + Lupin (A) + M & M Fin (A) + Mah & Mah (A)  Maha Gas (A) Manapp Finance (A) + Marico (A) z Maruti Suzuki (A)  Max Fin Sre (A) + MCX (A) MindTree (A) Mothersons S (A) z
PCLose (120.70) (120.50) (637.65) (637.30) (1287.55) (1288.60) (294.25) (295.05) (1351.40) (1351.55) (185.45) (185.70) PCLose (520.50) (520.35) (887.40) (887.10) (483.50) (483.35) (981.65) (983.85) (837.70) (838.05) (100.85) (100.90) PCLose (369.25) (368.70) (9364.00) (9368.10) (472.65) (472.35) (821.00) (820.50) (1035.95) (1035.15) (310.30) (310.35)
Open 120.50 120.80 639.75 637.65 1281.60 1282.00 295.90 296.20 1357.00 1351.15 186.00 185.95 Open 521.30 522.00 887.00 885.00 484.95 484.00 982.50 984.95 840.00 839.00 100.95 101.00 Open 370.00 370.90 9368.00 9370.00 475.00 475.00 824.80 818.20 1040.50 1034.00 310.30 310.25
High 120.50 120.80 643.40 645.00 1283.85 1282.00 299.55 299.35 1362.65 1362.90 186.95 187.05 High 528.50 528.00 899.75 900.00 494.90 495.00 992.00 991.60 851.00 850.80 101.10 101.35 High 377.50 377.10 9399.55 9370.00 477.75 479.55 829.00 828.85 1061.00 1059.90 311.50 312.40
Low 118.75 118.30 633.85 634.05 1263.75 1263.40 294.65 294.05 1347.70 1344.00 182.90 182.95 Low 518.40 518.00 880.25 880.00 480.45 480.40 978.00 977.90 833.50 834.65 100.05 100.00 Low 368.00 367.85 9182.05 9182.65 461.35 460.10 814.75 814.05 1037.60 1033.40 307.10 308.20
Close 119.05 118.85 640.20 641.05 1276.05 1278.05 296.45 296.40 1349.55 1346.55 183.85 183.90 Close 525.65 525.75 893.65 893.65 492.50 492.85 982.40 982.95 848.05 848.25 100.50 100.70 Close 370.00 370.20 9212.40 9205.80 464.10 463.80 824.25 823.30 1050.35 1052.05 309.85 309.85
%Chng -1.37 -1.37 0.40 0.59 -0.89 -0.82 0.75 0.46 -0.14 -0.37 -0.86 -0.97 %Chng 0.99 1.04 0.70 0.74 1.86 1.97 0.08 -0.09 1.24 1.22 -0.35 -0.20 %Chng 0.20 0.41 -1.62 -1.73 -1.81 -1.81 0.40 0.34 1.39 1.63 -0.15 -0.16
Shares 74958 2022K 9662 347K 74666 2373K 29943 1452K 117K 2289K 350K 4578K Shares 130K 4296K 85263 2422K 102K 2133K 85110 1832K 86583 969K 66850 1760K Shares 79284 1991K 53330 674K 17391 564K 21227 462K 77593 1631K 70820 2214K
Trades 613 11289 235 8886 3938 69041 792 25770 4126 53172 1963 44872 Trades 2194 45119 2557 58195 1661 22922 1751 45754 3667 27959 449 5465 Trades 1213 37297 4439 74010 583 18239 785 9330 3442 34192 697 36517
PE 9.48 9.46 19.36 19.39 37.84 37.90 21.10 21.10 22.40 22.35 21.72 21.73 PE 12.71 12.71 395.52 395.52 29.71 29.73 25.30 25.31 17.38 17.39 11.83 11.85 PE 56.08 56.11 34.18 34.16 94.44 94.38 48.73 48.68 28.43 28.48 25.77 25.77
3 M H/L 127/105 127/105 649/495 650/495 1424/1238 1417/1238 312/250 310/250 1396/1206 1396/1206 190/141 190/141 3 M H/L 583/457 584/455 946/746 946/745 527/447 527/447 992/875 993/874 984/795 987/794 115/96 114/96 3 M H/L 388/315 388/315 9923/8501 9929/8516 534/404 534/403 917/713 918/712 1102/908 1100/908 327/275 327/274
52 Wk H/L 172/105 172/105 649/433 650/431 1424/964 1417/964 312/112 310/112 1470/1116 1470/1116 214/141 214/141 52 Wk H/L 691/457 690/455 1090/724 1090/724 538/386 534/386 992/613 993/612 1345/774 1378/772 130/92 130/92 52 Wk H/L 388/284 388/284 10000/75479996/7532 653/404 653/403 1160/665 1160/665 1102/439 1101/439 395/275 396/274
1 M returns 2.72 2.50 4.86 4.93 -2.54 -2.20 -0.10 -0.27 3.61 3.40 4.58 4.49 1 M returns -0.78 -0.62 8.80 8.40 -3.99 -4.09 5.19 5.02 -6.93 -6.97 -4.47 -4.46 1 M returns 1.75 1.68 -3.09 -3.31 -6.74 -6.72 -6.52 -6.64 12.86 12.84 -3.82 -3.80
1 Yr returns -21.70 -21.55 14.84 15.24 30.75 30.95 153.81 154.31 18.80 18.50 -8.14 -8.19 1 Yr returns -21.99 -21.98 -8.96 -8.76 15.31 15.29 46.11 46.19 -18.86 -18.74 1.26 1.41 1 Yr returns 17.65 17.36 19.60 19.55 -22.88 -22.90 -21.73 -21.70 127.03 128.21 0.60 0.57
Mcap 3364 3359 4232 4237 243289 243670 5855 5854 189207 188786 36716 36726 Mcap 26527 26532 40406 40406 30424 30446 122132 122200 8377 8379 8468 8484 Mcap 47763 47789 278288 278089 12456 12448 4204 4199 17246 17274 65233 65233
Book-value 181.97 181.97 153.46 153.46 144.85 144.85 91.98 91.98 395.86 395.86 68.02 68.02 Book-value 251.48 251.48 300.28 300.28 160.51 160.51 296.44 296.44 186.28 186.28 45.53 45.53 Book-value 20.03 20.03 1408.88 1408.88 86.98 86.98 270.68 270.68 166.97 166.97 46.95 46.95
Price/Bk-val 0.65 0.65 4.17 4.18 8.81 8.82 3.22 3.22 3.41 3.40 2.70 2.70 Price/Bk-val 2.09 2.09 2.98 2.98 3.07 3.07 3.31 3.32 4.55 4.55 2.21 2.21 Price/Bk-val 18.48 18.49 6.54 6.53 5.34 5.33 3.05 3.04 6.29 6.30 6.60 6.60
RoNW 8.79 8.79 7.67 7.67 12.35 12.35 13.92 13.92 13.28 13.28 10.74 10.74 RoNW 15.68 15.68 1.85 1.85 10.33 10.33 20.38 20.38 21.38 21.38 17.49 17.49 RoNW 31.51 31.51 18.52 18.52 16.93 16.93 7.85 7.85 20.80 20.80 16.16 16.16
RoCE 6.61 6.61 8.35 8.35 6.30 6.30 15.66 15.66 11.21 11.21 8.30 8.30 RoCE 8.98 8.98 3.59 3.59 8.84 8.84 14.95 14.95 32.65 32.65 12.46 12.46 RoCE 38.66 38.66 26.97 26.97 21.96 21.96 10.66 10.66 24.95 24.95 14.88 14.88

MRF (A) Muthoot Finance (A) Nat Alum (A)  NBCC (A) z NCC (A) + Nestle India (A) NIIT Techno (A) NMDC (A) z NTPC (A) Oil India (A) ONGC (A)  Oriental Bank (A) Page Inds (A) PC Jeweller (A) Petronet LNG (A) Pidilite Ind (A) z Piramal Entp (A) + PNB (A) +
PCLose (73251.05) (73286.40) (408.85) (409.70) (76.70) (76.70) (72.65) (72.60) (98.45) (98.35) (11322.50) (11299.30) PCLose (1328.60) (1328.95) (108.65) (108.45) (166.00) (166.05) (209.60) (209.50) (177.30) (177.00) (81.00) (81.10) PCLose (35891.15) (35973.45) (85.90) (86.00) (233.10) (233.25) (1150.60) (1148.05) (3118.90) (3119.55) (84.20) (84.15)
Open 73461.00 73753.90 410.90 410.50 78.00 77.80 74.00 72.50 98.65 98.65 11322.50 11302.00 Open 1320.00 1336.00 108.50 107.90 166.00 165.55 213.00 209.90 177.70 176.90 81.35 81.05 Open 36009.00 35962.50 87.20 86.35 235.00 234.95 1148.00 1147.45 3129.80 3121.25 84.40 84.10
High 74200.00 74153.95 412.00 413.20 78.50 78.45 74.00 73.25 100.10 100.00 11455.95 11401.75 High 1360.00 1362.65 109.90 110.00 169.85 170.75 214.75 214.50 181.80 181.90 86.50 86.40 High 36009.00 35962.50 87.40 87.40 242.20 241.80 1151.50 1152.95 3146.65 3144.85 85.90 85.90
Low 73201.00 73001.00 405.00 406.70 75.35 75.30 71.90 71.80 97.75 98.00 11270.35 11257.70 Low 1320.00 1327.05 107.50 107.50 165.10 165.55 208.00 207.60 176.20 176.15 79.45 79.40 Low 34811.40 34930.80 85.05 84.65 233.50 234.25 1135.35 1133.00 3089.00 3091.15 83.60 83.60
Close 73368.50 73218.80 408.80 409.10 76.05 76.20 72.40 72.25 98.25 98.25 11288.70 11286.40 Close 1355.80 1355.55 109.50 109.60 169.20 169.70 213.75 213.85 177.75 177.45 84.90 84.80 Close 35157.95 35212.45 85.55 85.65 239.80 240.05 1138.00 1136.40 3127.15 3121.45 85.05 85.10
%Chng 0.16 -0.09 -0.01 -0.15 -0.85 -0.65 -0.34 -0.48 -0.20 -0.10 -0.30 -0.11 %Chng 2.05 2.00 0.78 1.06 1.93 2.20 1.98 2.08 0.25 0.25 4.81 4.56 %Chng -2.04 -2.12 -0.41 -0.41 2.87 2.92 -1.10 -1.01 0.26 0.06 1.01 1.13
Shares 247 5919 6721 248K 1068K 19630K 238K 3168K 441K 10133K 1689 83213 Shares 39714 611K 330K 4976K 131K 11154K 40476 913K 493K 11296K 790K 9541K Shares 729 43512 842K 7519K 280K 7968K 18400 1085K 24881 272K 1591K 40695K
Trades 157 2961 198 4010 5176 43110 1178 11900 1843 22786 349 8647 Trades 1527 17402 2334 12927 1525 41475 983 11465 3683 84631 3403 31665 Trades 409 17722 4944 39729 4376 60488 674 10976 1496 11396 5659 74684
PE 24.96 24.91 9.51 9.51 7.73 7.75 34.09 34.02 18.04 18.04 73.84 73.83 PE 24.28 24.28 9.09 9.10 13.53 13.57 8.31 8.31 10.27 10.26 - - PE 101.53 101.68 5.89 5.89 16.15 16.17 58.95 58.86 11.89 11.87 - -
3 M H/L 81098/72472 81191/72605 433/370 433/369 79/57 78/57 95/61 95/61 126/78 126/78 11590/9506 11585/9490 3 M H/L 1394/971 1394/972 121/94 121/94 174/149 175/150 228/200 229/199 182/152 182/152 87/66 87/66 3 M H/L 36336/23915 36370/23930 175/65 175/65 242/204 242/204 1195/1013 1192/1019 3149/2290 3150/2285 95/72 95/72
52 Wk H/L 81423/61110 81426/61000 526/360 526/364 98/57 98/57 146/61 146/61 142/78 141/78 11590/6800 11585/6851 52 Wk H/L 1394/488 1394/486 163/94 163/94 188/149 188/150 259/188 259/188 213/152 213/152 160/66 160/66 52 Wk H/L 36336/17280 36370/17560 601/65 601/65 275/202 276/202 1195/749 1195/751 3149/2279 3150/2275 232/72 231/72
1 M returns -7.66 -7.89 1.14 1.12 23.96 23.80 2.56 2.41 6.16 6.16 7.13 7.18 1 M returns 10.30 10.49 3.99 4.18 9.06 9.59 2.32 2.30 7.40 7.09 5.40 5.08 1 M returns 21.70 21.20 -6.14 -5.98 4.65 4.76 1.37 1.15 16.67 16.48 -0.12 0.00
1 Yr returns 14.33 14.24 -13.98 -14.10 5.49 5.47 -29.38 -29.35 16.48 16.41 58.97 58.49 1 Yr returns 172.30 171.90 -13.44 -13.46 0.30 0.56 12.26 12.50 13.22 13.07 -32.70 -33.04 1 Yr returns 98.31 98.40 -75.84 -75.91 6.41 5.66 36.14 35.95 15.91 15.70 -40.81 -40.82
Mcap 31108 31045 16356 16368 14700 14729 13032 13005 5901 5901 108846 108823 Mcap 8344 8342 34645 34676 139513 139925 24258 24270 228111 227726 5372 5366 Mcap 39201 39262 3376 3380 35970 36008 57788 57706 56476 56373 23478 23492
Book-value 22967.43 22967.43 163.41 163.41 54.34 54.34 10.92 10.92 67.97 67.97 354.76 354.76 Book-value 274.05 274.05 71.17 71.17 118.66 118.66 260.11 260.11 172.36 172.36 223.17 223.17 Book-value 759.91 759.91 84.93 84.93 64.80 64.80 70.38 70.38 1223.02 1223.02 151.59 151.59
Price/Bk-val 3.19 3.19 2.50 2.50 1.40 1.40 6.63 6.62 1.45 1.45 31.82 31.81 Price/Bk-val 4.95 4.95 1.54 1.54 1.43 1.43 0.82 0.82 1.03 1.03 0.38 0.38 Price/Bk-val 46.27 46.34 1.01 1.01 3.70 3.70 16.17 16.15 2.56 2.55 0.56 0.56
RoNW 11.62 11.62 18.35 18.35 12.78 12.78 18.05 18.05 4.13 4.13 35.82 35.82 RoNW 14.83 14.83 11.50 11.50 10.96 10.96 5.41 5.41 9.27 9.27 - - RoNW 40.95 40.95 12.56 12.56 21.38 21.38 26.93 26.93 23.19 23.19 3.17 3.17
RoCE 16.06 16.06 15.06 15.06 19.34 19.34 28.35 28.35 11.53 11.53 55.88 55.88 RoCE 19.71 19.71 19.16 19.16 8.28 8.28 6.25 6.25 11.83 11.83 5.01 5.01 RoCE 58.44 58.44 20.21 20.21 28.80 28.80 37.06 37.06 7.88 7.88 4.77 4.77

Power Fin (A) Power Grid (A) PTC India (A) PVR (A) Ramco Cements (A) z Raymond (A) RBL Bank (A) Reliance Cap (A) Reliance Com (A)  Reliance Ind (A) Reliance Infra (A) Reliance Power (A) Repco Home (A) Rural Elect (A) SAIL (A) SBI (A) z Shree Cement (A) Shriram TrFn (A)
PCLose (84.65) (84.65) (193.70) (193.05) (83.10) (83.05) (1361.35) (1365.70) (691.20) (690.40) (826.15) (826.90) PCLose (640.50) (639.90) (450.60) (450.55) (18.55) (18.55) (1294.45) (1294.20) (438.80) (439.30) (34.55) (34.55) PCLose (552.10) (552.40) (118.10) (118.20) (80.05) (80.10) (309.65) (309.70) (18828.65) (18796.85) (1346.10) (1348.95)
Open 84.10 84.60 194.00 193.25 82.00 82.45 1379.95 1384.25 694.00 696.00 829.95 827.00 Open 643.00 640.00 451.00 449.95 18.45 18.45 1300.00 1293.60 443.70 439.95 35.00 34.80 Open 551.55 553.50 118.90 118.70 80.30 80.00 310.00 309.30 18836.75 18705.50 1353.10 1360.95
High 85.85 86.00 197.50 198.20 83.50 83.75 1399.00 1401.00 696.90 698.50 850.00 851.40 High 643.00 642.00 475.15 476.00 18.92 18.95 1300.00 1297.15 477.80 478.70 38.00 38.00 High 558.40 559.00 120.45 120.50 81.85 81.90 310.00 310.50 18951.00 18999.00 1354.05 1360.95
Low 83.75 83.65 192.50 192.40 82.00 82.20 1347.20 1347.10 685.55 686.75 825.00 824.00 Low 623.05 623.00 443.10 442.95 18.06 18.05 1270.45 1270.45 434.60 433.25 34.50 34.45 Low 545.00 543.20 116.90 116.65 79.90 79.80 306.00 306.00 18781.80 18656.30 1333.00 1331.55
Close XO85.25 85.30 195.95 196.95 82.60 82.55 1368.65 1369.30 692.15 692.80 845.30 846.65 Close 626.80 626.90 463.55 464.00 18.56 18.60 1274.10 1274.45 463.10 463.95 36.60 36.65 Close 550.15 549.45 119.30 119.65 81.15 81.10 308.15 308.60 18882.20 18869.15 1341.60 1342.10
%Chng 0.71 0.77 1.16 2.02 -0.60 -0.60 0.54 0.26 0.14 0.35 2.32 2.39 %Chng -2.14 -2.03 2.87 2.99 0.05 0.27 -1.57 -1.53 5.54 5.61 5.93 6.08 %Chng -0.35 -0.53 1.02 1.23 1.37 1.25 -0.48 -0.36 0.28 0.38 -0.33 -0.51
Shares 725K 7626K 136K 12570K 102K 1847K 47425 965K 16117 407K 82011 1003K Shares 104K 1684K 761K 10514K 8870K 90415K 1803K 9850K 1505K 17818K 3566K 33088K Shares 5645 375K 477K 7784K 938K 16385K 935K 19936K 145 20804 11532 669K
Trades 1830 23262 1426 53452 512 7728 2129 31705 388 4412 2101 20521 Trades 2122 34295 10359 105024 93940 144182 11065 178483 20691 192254 8808 50179 Trades 287 22702 2324 29867 3199 36380 6176 112027 80 6155 374 24531
PE 3.84 3.85 12.16 12.23 7.75 7.75 48.32 48.34 31.07 31.10 34.74 34.80 PE 38.82 38.82 8.79 8.80 - - 22.13 22.14 9.37 9.39 9.86 9.87 PE 15.51 15.49 5.07 5.08 38.97 38.95 - - 53.77 53.73 17.99 17.99
3 M H/L 89/68 89/68 212/174 213/174 91/68 91/68 1463/1065 1463/1063 786/615 786/620 1023/756 1025/757 3 M H/L 652/503 652/502 475/335 476/334 22/12 22/12 1329/917 1329/915 478/364 479/365 38/29 38/29 3 M H/L 648/527 648/527 122/89 122/89 91/70 91/70 326/250 326/250 18951/15015 18999/14980 1529/1047 1529/1048
52 Wk H/L 149/68 150/68 224/174 221/174 130/68 130/68 1568/1065 1568/1063 879/615 879/620 1152/756 1153/757 52 Wk H/L 652/443 652/443 878/335 880/334 42/10 40/10 1329/780 1329/779 590/364 590/365 65/29 65/29 52 Wk H/L 739/515 734/510 184/89 184/89 101/53 101/53 352/232 351/232 19842/15015 19849/14980 1671/970 1669/968
1 M returns -2.12 -2.29 7.55 8.04 -0.18 -0.18 24.14 24.10 -3.77 -3.51 0.84 1.27 1 M returns 9.11 9.43 9.95 9.97 29.16 29.17 7.44 7.46 15.95 16.29 9.25 9.40 1 M returns -8.45 -8.52 2.01 2.31 4.71 4.65 5.03 5.14 10.65 10.88 -2.86 -2.90
1 Yr returns -30.12 -30.14 -10.26 -10.17 -30.99 -30.98 3.82 3.62 0.20 0.29 8.85 8.94 1 Yr returns 15.09 15.11 -42.34 -42.38 -20.34 -20.17 59.91 59.86 -9.02 -8.90 -9.63 -9.39 1 Yr returns -15.19 -15.43 -29.14 -29.01 33.58 33.39 11.11 11.11 7.32 7.27 35.37 36.25
Mcap 22507 22520 102513 103036 2445 2444 6397 6400 16307 16322 5188 5197 Mcap 26556 26561 11714 11726 5133 5144 807576 807797 12179 12201 10267 10281 Mcap 3442 3437 23561 23630 33519 33499 275012 275413 65786 65740 30438 30450
Book-value 150.98 150.98 95.32 95.32 130.24 130.24 206.46 206.46 174.24 174.24 295.22 295.22 Book-value - - 606.78 606.78 104.72 104.72 463.04 463.04 888.74 888.74 76.17 76.17 Book-value 183.75 183.75 170.49 170.49 89.68 89.68 210.97 210.97 2553.58 2553.58 554.83 554.83
Price/Bk-val 0.56 0.56 2.06 2.07 0.63 0.63 6.63 6.63 3.97 3.98 2.86 2.87 Price/Bk-val - - 0.76 0.76 0.18 0.18 2.75 2.75 0.52 0.52 0.48 0.48 Price/Bk-val 2.99 2.99 0.70 0.70 0.90 0.90 1.46 1.46 7.39 7.39 2.42 2.42
RoNW 14.69 14.69 14.94 14.94 10.76 10.76 9.93 9.93 13.73 13.73 7.43 7.43 RoNW - - 7.08 7.08 1.85 1.85 12.29 12.29 6.10 6.10 5.17 5.17 RoNW 16.32 16.32 18.75 18.75 - - 5.57 5.57 15.56 15.56 12.37 12.37
RoCE 9.48 9.48 9.27 9.27 10.71 10.71 13.08 13.08 16.37 16.37 9.24 9.24 RoCE - - 8.17 8.17 1.35 1.35 10.78 10.78 13.89 13.89 7.86 7.86 RoCE 10.70 10.70 11.29 11.29 - - 4.87 4.87 15.96 15.96 10.25 10.25

Siemens (A) + South Ind Bk (A) z SRF Ltd (A) Strides Pharma (A) Sun Pharma (A) z Sun TV Net (A)  Suzlon Energy (A) + Syndicate Bank (A) Tata Chem (A) Tata Comm (A) Tata Elxsi (A) Tata Global (A) z Tata Mot-DVR (A) + Tata Motors (A) + Tata Power (A) z Tata Steel (A) TCS (A) z Tech Mahindra (A) 
PCLose (1026.05) (1026.80) (17.80) (17.75) (2052.90) (2053.10) (479.60) (480.50) (620.70) (621.25) (768.40) (768.05) PCLose (7.23) (7.20) (39.20) (39.30) (758.15) (757.70) (550.25) (548.85) (1398.60) (1396.15) (234.75) (234.55) PCLose (140.35) (140.55) (261.60) (261.70) (76.85) (76.90) (594.05) (594.20) (2065.80) (2072.00) (734.15) (734.45)
Open 1036.90 1030.00 17.85 17.90 2062.50 2059.90 483.00 481.50 627.00 623.50 765.00 763.00 Open 7.27 7.25 39.70 39.35 752.00 754.25 544.90 550.00 1395.00 1398.90 233.00 235.35 Open 141.00 140.45 261.85 262.30 77.25 77.00 593.70 592.30 2070.00 2068.00 735.00 734.45
High 1036.90 1031.95 18.00 17.90 2083.00 2084.50 494.90 495.00 642.00 642.00 774.00 774.50 High 7.30 7.30 41.25 41.20 766.25 766.60 562.00 563.55 1417.45 1417.75 237.90 237.30 High 141.50 141.20 263.00 263.00 77.35 77.40 610.00 610.00 2080.20 2085.00 736.85 737.00
Low 1007.00 1002.00 17.55 17.40 2033.70 2033.00 481.80 481.50 622.55 622.15 762.55 760.85 Low 7.00 6.95 39.25 39.20 741.00 744.55 543.00 546.00 1390.20 1389.35 232.30 232.10 Low 138.00 138.00 259.10 259.00 75.75 75.70 590.70 591.05 2064.40 2065.50 720.30 720.25
Close 1008.85 1005.75 17.65 17.55 2040.75 2040.55 489.95 490.00 639.50 639.95 766.60 765.00 Close 7.07 7.05 40.65 40.60 760.05 759.90 558.50 559.45 1407.30 1407.30 236.20 236.00 Close 138.55 138.20 259.65 259.35 76.15 76.10 608.30 608.35 2079.45 2082.40 729.55 731.90
%Chng -1.68 -2.05 -0.84 -1.13 -0.59 -0.61 2.16 1.98 3.03 3.01 -0.23 -0.40 %Chng -2.21 -2.08 3.70 3.31 0.25 0.29 1.50 1.93 0.62 0.80 0.62 0.62 %Chng -1.28 -1.67 -0.75 -0.90 -0.91 -1.04 2.40 2.38 0.66 0.50 -0.63 -0.35
Shares 12817 188K 944K 18223K 17749 494K 186K 2101K 439K 9023K 36118 1246K Shares 3570K 31127K 314K 5812K 58597 1093K 17050 589K 45655 438K 141K 1921K Shares 122K 1886K 370K 6334K 217K 3984K 733K 10284K 188K 2408K 79823 4304K
Trades 592 8499 853 10283 907 18170 3321 38472 7185 133136 725 24727 Trades 416143 70289 1430 11269 2466 32704 364 10174 1343 15453 1066 14371 Trades 1283 14187 3657 46799 1602 14131 11080 121761 7343 125517 2711 82871
PE 29.01 28.92 12.45 12.38 27.40 27.40 6.56 6.56 37.96 37.99 24.16 24.11 PE - - - - 7.11 7.11 24.42 24.46 33.61 33.61 27.46 27.44 PE - - 18.61 18.59 4.99 4.98 3.65 3.65 29.17 29.21 18.37 18.43
3 M H/L 1050/933 1051/931 26/17 26/17 2083/1531 2085/1530 495/334 495/333 645/471 646/470 950/725 950/724 3 M H/L 9/7 9/7 54/37 54/37 766/648 767/648 633/534 639/535 1492/1137 1491/1137 285/229 285/229 3 M H/L 190/134 189/134 315/243 316/243 84/67 83/67 610/494 610/493 2080/1713 2085/1711 749/613 749/612
52 Wk H/L 1450/933 1454/931 35/17 35/17 2443/1477 2447/1470 1041/334 1041/333 645/435 646/435 1097/695 1098/692 52 Wk H/L 18/7 18/7 96/37 96/37 787/568 788/568 758/534 754/535 1492/795 1491/792 329/191 329/191 52 Wk H/L 262/134 262/134 467/243 468/243 102/67 102/67 755/494 756/493 2080/1210 2085/1211 749/411 749/411
1 M returns 2.48 1.71 -3.55 -3.84 17.94 17.87 27.38 27.42 12.86 12.57 -0.99 -0.95 1 M returns -9.71 -9.62 -10.17 -10.18 10.38 10.31 -3.40 -3.31 -1.44 -1.46 -4.37 -4.41 1 M returns -3.91 -3.96 -1.70 -1.80 2.35 2.08 8.07 8.05 7.12 7.33 7.24 7.51
1 Yr returns -21.51 -21.73 -36.74 -36.98 33.21 33.09 -46.07 -45.87 33.13 33.00 9.95 9.84 1 Yr returns -56.49 -56.75 -37.27 -37.10 30.18 30.11 -14.48 -14.18 71.01 71.64 19.35 19.19 1 Yr returns -36.86 -36.82 -31.05 -31.12 -3.72 -3.97 0.07 0.08 66.57 66.84 70.44 70.94
Mcap 35925 35815 3194 3176 11730 11729 4388 4388 153435 153543 30210 30147 Mcap 3761 3750 5761 5754 19363 19359 15917 15944 8765 8765 14907 14894 Mcap 7045 7027 74970 74883 20597 20584 68532 68537 796138 797268 71547 71777
Book-value 216.36 216.36 26.77 26.77 620.13 620.13 360.97 360.97 152.71 152.71 118.97 118.97 Book-value - - 100.08 100.08 435.77 435.77 17.52 17.52 118.55 118.55 111.07 111.07 Book-value - - 330.50 330.50 56.42 56.42 518.73 518.73 222.57 222.57 192.08 192.08
Price/Bk-val 4.66 4.65 0.66 0.66 3.29 3.29 1.36 1.36 4.19 4.19 6.44 6.43 Price/Bk-val - - 0.41 0.41 1.74 1.74 31.88 31.93 11.87 11.87 2.13 2.12 Price/Bk-val - - 0.79 0.78 1.35 1.35 1.17 1.17 9.34 9.36 3.80 3.81
RoNW 14.71 14.71 8.10 8.10 12.95 12.95 3.36 3.36 19.01 19.01 24.21 24.21 RoNW - - 2.53 2.53 21.92 21.92 77.45 77.45 32.51 32.51 7.07 7.07 RoNW - - 9.42 9.42 16.23 16.23 22.99 22.99 30.31 30.31 20.17 20.17
RoCE 22.08 22.08 6.26 6.26 10.52 10.52 4.93 4.93 18.45 18.45 36.65 36.65 RoCE 23.91 23.91 5.85 5.85 16.38 16.38 3.93 3.93 49.40 49.40 8.97 8.97 RoCE - - 9.77 9.77 9.97 9.97 14.84 14.84 39.89 39.89 23.80 23.80

Titan Company (A) z Torrent Phar (A)  Torrent Pwer (A) TV18 Broadcast (A) + TVS Motor (A) z Ujjivan Fin Ser (A) UltraTech (A) Union Bank (A) United Brew (A) z United Spirt (B) + UPL (A) + V Guard Inds (A) z Vedanta (A) z Voltas (A) z Wipro (A) + Wockhardt (A)  + z
PCLose (882.05) (882.80) (1766.85) (1769.15) (263.75) (263.95) (46.75) (46.70) (557.60) (557.60) (356.10) (355.55) PCLose (4405.05) (4401.95) (87.95) (87.95) (1385.75) (1387.70) (640.80) (640.45) (679.55) (680.00) (221.95) (221.90) PCLose (227.90) (228.05) (628.25) (627.35) (296.95) (296.75) (644.10) (644.90)
Open 882.00 884.45 1767.50 1769.90 265.05 265.05 46.75 46.75 560.00 558.55 357.00 356.70 Open 4419.00 4403.00 88.50 87.80 1390.00 1387.50 641.55 640.45 684.20 686.00 223.90 223.15 Open 229.90 229.85 628.75 629.05 298.00 297.50 646.00 645.00
High 891.45 891.00 1774.55 1776.65 267.50 267.95 47.20 47.25 569.00 572.65 358.45 358.40 High 4449.95 4445.00 91.00 91.00 1438.60 1439.90 661.85 661.80 698.00 699.00 225.65 225.70 High 231.00 231.05 632.40 633.00 299.60 300.00 675.50 674.70
Low 876.00 876.00 1751.00 1749.65 260.60 261.00 45.55 45.45 558.95 557.85 350.15 350.35 Low 4400.00 4386.00 86.50 86.40 1388.40 1387.40 641.55 640.20 683.25 683.00 221.90 222.05 Low 226.20 226.15 622.00 621.00 294.25 294.00 644.00 641.95
Close 878.40 878.35 1768.40 1770.15 263.90 264.10 45.95 45.90 564.45 565.85 352.80 352.40 Close 4429.20 4426.40 90.55 90.50 1420.75 1420.95 XO646.55 646.45 695.10 696.15 223.75 224.25 Close 229.80 230.00 623.80 623.70 298.85 298.95
%Chng -0.41 -0.50 0.09 0.06 0.06 0.06 -1.71 -1.71 1.23 1.48 -0.93 -0.89 %Chng 0.55 0.56 2.96 2.90 2.53 2.40 0.90 0.94 2.29 2.38 0.81 1.06 %Chng 0.83 0.86 -0.71 -0.58 0.64 0.74
Shares 96256 1759K 4601 306K 84536 1111K 426K 4871K 31932 4511K 78088 1337K Shares 54936 332K 890K 11373K 47633 1339K 115K 2278K 175K 5979K 91346 1253K Shares 790K 24137K 74764 2191K 253K 3400K K K K K K
Trades 3083 52585 308 10731 961 17680 1134 15457 655 32172 1504 21168 Trades 2449 21425 2876 33405 1710 38645 4406 42086 3817 81679 1308 12740 Trades 5126 90733 1206 19997 2135 31562
PE 62.63 62.63 45.83 45.87 12.99 13.00 514.53 513.97 39.45 39.55 - - PE 62.17 62.13 - - 82.74 82.75 80.99 80.98 17.10 17.13 66.14 66.29 PE 6.16 6.16 35.77 35.77 16.87 16.88
3 M H/L 947/800 945/800 1803/1334 1803/1330 270/216 276/215 59/44 59/44 608/507 610/507 415/341 408/341 3 M H/L 4457/3566 4460/3563 97/74 97/74 1462/1030 1462/1032 716/548 709/548 716/538 717/537 230/182 230/183 3 M H/L 258/201 258/201 637/493 637/493 300/254 300/254
52 Wk H/L 1006/564 1000/564 1803/1149 1803/1147 307/208 307/208 71/37 71/37 795/507 794/507 432/314 435/313 52 Wk H/L 4594/3566 4600/3563 196/74 196/74 1462/776 1462/775 801/468 801/468 849/538 850/537 255/177 255/177 52 Wk H/L 356/201 356/201 675/493 675/493 335/254 334/254
1 M returns -3.52 -3.73 15.87 15.80 9.84 9.84 -2.85 -2.86 9.08 9.53 -7.11 -7.13 1 M returns 5.71 5.55 4.68 4.68 30.23 30.26 10.30 10.12 8.04 8.09 4.41 4.59 1 M returns 3.40 3.51 9.79 9.82 7.97 8.16
1 Yr returns 42.46 42.34 47.04 47.08 25.61 25.67 20.92 20.31 -6.58 -6.27 -3.75 -3.85 1 Yr returns 10.77 10.65 -33.35 -33.60 79.74 80.31 27.02 27.11 -16.31 -15.93 20.04 20.47 1 Yr returns -25.42 -25.54 18.97 18.86 -0.07 -0.05
Mcap 77984 77980 29925 29954 12684 12693 7877 7869 26817 26884 4269 4264 Mcap 121635 121558 10581 10576 37565 37570 46982 46974 35339 35392 9541 9562 Mcap 85421 85496 20642 20638 135201 135246
Book-value 57.33 57.33 273.15 273.15 160.62 160.62 22.12 22.12 56.35 56.35 145.58 145.58 Book-value 960.64 960.64 200.55 200.55 88.28 88.28 24.57 24.57 180.35 180.35 17.58 17.58 Book-value 170.85 170.85 118.02 118.02 105.94 105.94
Price/Bk-val 15.32 15.32 6.47 6.48 1.64 1.64 2.08 2.07 10.02 10.04 2.42 2.42 Price/Bk-val 4.61 4.61 0.45 0.45 16.09 16.10 26.31 26.31 3.85 3.86 12.73 12.76 Price/Bk-val 1.35 1.35 5.29 5.28 2.82 2.82
RoNW 22.20 22.20 14.67 14.67 12.21 12.21 2.54 2.54 24.37 24.37 0.41 0.41 RoNW 8.42 8.42 2.37 2.37 9.84 9.84 5.61 5.61 22.05 22.05 17.91 17.91 RoNW 16.28 16.28 14.66 14.66 16.70 16.70
RoCE 23.76 23.76 11.18 11.18 13.16 13.16 4.01 4.01 13.08 13.08 6.73 6.73 RoCE 9.88 9.88 5.49 5.49 13.88 13.88 9.19 9.19 19.49 19.49 23.91 23.91 RoCE 18.08 18.08 20.05 20.05 17.51 17.51
https://t.me/pdf4exams http://www.estore33.com/
Financial liabilities of
households at 7-yr high
FINANCIAL LIABILITIES OF
HOUSEHOLDS SKYROCKET
Net financial saving Financial liabilities
(as % of gross national disposable income)
Gross financial saving
10.4 10.4 10.3 9.9 10.9 9.1
3.2 3.2 2.8
3.1 3.0
2.4
7.2 7.2 7.2 6.9 8.1 6.7
‘11-12 ‘12-13 ‘13-14 ‘14-15 ‘15-16 ‘16-17 ‘17-18
Source: RBI annual report
RBI ANNUAL REPORT: Earlier, there was a consistent
reduction from 3.2% in FY12 to 2.4% of GNDI in FY17
ABHISHEK WAGHMARE
New Delhi, 30 August
T
he financial liabilities of households
have gone up to at least a seven-year
high of 4 per cent of their disposable
income, according to the Reserve Bank of
India (RBI) Annual Report for 2017-18
(FY18). This is significant, as it comes after
a consistent reduction from 3.2 per cent of
the gross national disposable income
(GNDI) in 2011-12 to 2.4 per cent of GNDI in
2016-17 (FY17). While the reason for its fall to
2.4 per cent of GNDI in FY17 was demon-
etisation, the growing demand for housing
and unsecured personal loans led to a rise
in liabilities in FY18, experts said.
This is also evident from the fact that the
share of personal loans in the outstanding
non-food credit rose from 19.4 per cent at
the end of March 2015 to 24.8 per cent at the
end of March 2018, according to the RBI’s
monthly credit deployment data. It stood at
25.3 per cent in June 2018.
From March 2015 to March 2018, the
outstanding non-food credit grew by 28 per
cent. In the same period, personal loans
outstanding grew by 63 per cent, from ~11.7
trillion to ~19 trillion. In that, housing loans
outstanding grew 55 per cent, from ~6.3 tril-
lion to ~9.8 trillion, clearly growing faster
https://t.me/TheHindu_Zone_official
SHARE OF PERSONAL LOANS
RISES IN CREDIT
Agriculture & allied activities
Industry (micro & small, medium & large)
Services Personal loans
as % of total non-food credit
1.1
4.0
12.8
19.4 24.8
23.6 44.3
26.7
7.1
Mar ‘15
than the growth in overall credit outstand-
ing.
Personal loans have replaced a part of
the share of industry credit, which is taper-
ing for the last four years, while the balance
has gone to the services sector.
The share of industry loans has plum-
meted from 44.3 per cent at the end of
March 2015 to 35.1 per cent of the non-food
credit in March 2018, a fall of 9 percentage
points and that of services has increased
from 23 per cent to 26 per cent.
Under personal loans, housing and ‘oth-
er’ personal loans have contributed the
most to household financial liabilities.
The share of housing loans (including
priority housing) in the bank credit rose
from 10.5 per cent of the non-food credit
in March 2015 to 12.7 per cent in March
2018. It has further grown to 13.1 per cent
at the end of June 2018. Despite a slow-
down in the housing and realty sector
after demonetisation, goods and services
tax, and Real Estate (Regulation and
Development) Act implementation,
prices have continued to appreciate
strongly in cities such as Pune,
Hyderabad, Bengaluru, and Kolkata,
according to Anarock property consult-
ants. “The price appreciation trends clear-
ly indicate the investors and speculators
HOUSING AND
PERSONAL
LOANS GROW
Shareinoutstandingcredit
asof Mar‘15 Mar‘18
Housing* 10.5
12.7
13.4
Creditcard 0.5
outstanding 0.9
Vehicleloans 2.1
35.1 2.5
Otherpersonal 3.9
loans 6.6
*Including priority
Mar ‘18 sector housing
are out of the market and it seems to be a
pure end-user driven market offering
good deals for homebuyers. This has led
to resurgence in the home-buying senti-
ment,” Anuj Puri, chairman at Anarock,
told Business Standard.
According to the RBI data, other per-
sonal loans have surged twofold, from ~2.3
trillion at the end of March 2015 to ~5 trillion
at the end of March 2018. The share of these
loans in the total non-food credit pie has
increased from 4 per cent to 6.6 per cent in
the same period.
Vehicleloanshavealsocorneredabigger
share, but the growth in credit card out-
standing has been the fastest, compared to
other personal loan segments, albeit from a
lower base.
The credit card outstanding more than
doubled, from about ~300 billion in March
2015 to ~690 billion in March 2018, closing
in on about 1 per cent of the overall non-
food credit as on date.
In an attempt to understand the impact
of household savings and investments on
the economy more clearly, the RBI’s annu-
al report indicated it is attempting to gen-
erate quarterly estimates of household
financial savings. “According to the bank’s
preliminary estimates, net financial assets
of the household sector increased to 7.1 per
cent of GNDI in FY18, on account of an
increase in households’assets in the formof
currency,despiteanincreaseinhouseholds’
liabilities,” the report said.
https://t.me/pdf4exams http://www.estore33.com/ https://t.me/TheHindu_Zone_official
20 BRAND WORLD
>
MUMBAI | FRIDAY, 31 AUGUST 2018

Netflix twists the plot,

turns its trolls around
The American OTT player engages with trolls, banters with Zomato, KFC,
Ceat Tyres on Twitter; adds followers and builds its clout online
NIKHAT HETAVKAR
Mumbai,30 August TIMELINE OF A
s Netflix India found
TAKEDOWN
A itself being trolled over
the excessive program-
ming around actor Radhika
| Users postmemes of
Radhika Apte, troll Netflix
and the actress
Apte, it decided to join the
bandwagon by trolling itself
through a series of memes and
funny tweets.
It all started with a few
memes that mocked the brand
and the actor over the spate of
shows that the two had
launched together. Netflix’s
and Apte’s Twitter handles | Ameme with a backdrop
began blowing up with some
witty and some abusive tweets of herfaces with Homer
about the association. Simpson says: ‘When you
Instead of backing down or open Netflixthese days’...
staying silent, Netflix took the
trolls on. With quick, clever | Netflixjoins the trolls in
repartees it began mocking By spoofing itself and Radhika Apte in a mock video, Netflix poking fun atitself and
itself. It made a spoof trailer for earned thousands of likes and retweets Apte. Itcreates posts
a fake movie called around Apte, makes a
‘Omnipresent’ where Apte of how to govern themselves in great way for brands to use light
spoof video called
played all characters, and general. Governing themselves hearted wit and humour to
churned out clever responses on social is even more unclear express personality. “Zomato ‘Omnipresent’ thathas
to every tweet. It ran the risk of simply because social itself has latched onto such opportu- the actress playing every
inviting further ridicule but as doesn’t know how to govern nities in the past and estab- role and also being a part
Ashish Mishra, managing itself. But if we take the lished itself as a brand with of the production crew.
director of Interbrand explains, ungoverned social reality as a oodles of attitude,” she added. ‘Forevery role, Radhika
“If you are a brand that is posi- given, the brands then will Netflix India’s decision to
Apthai,’ is theirline
tioned as spontaneous, expres- need to weigh in the risks of troll itself sets it apart, but it is
sive, irreverent and have a top- inviting unfettered reactions not the first time that online | Netflix’s tweets go viral,
ical POV and the capability to and cynicism as also of the ridicule has been turned into fellowbrands and more
actively lead the conversations inintended associations fandom. In 2014, actor Alia
and content; then it may be inevitable in a polarised social Bhatt, starred in a spoof on her-
Twitterusers jump in
worth the risk.” world. The upside is visibility self, in response to being trolled | Zomato tweets, ‘And you
Social media marketing and engagement surely but the extensively for being stupid
consultant, Bengaluru-based question is what kind of brands after a talk show appearance.
thoughtonly Radhika
Karthik Srinivasan said that can take the risks without dilut- A brand’s social media pres- was versatile’ alongside a
Netflix India had two options: ing themselves.” ence is especially critical in the listof dishes from its
stay silent or offer to reduce the Other brands too have dynamic and fast paced world menu with paneer
number of shows with Radhika jumped on to the Netflix show that companies operate in (cottage cheese) in them
in it. The second choice would on Twitter. Zomato compared today. “Since, topical conver-
have been disastrous, he said. the versatility of Apte to sations like these are time | Netflixbanters with
Netflix took on the trolls with ‘paneer’ dishes on their restau- bound, not only does the brand Zomato, using its tweetto
funny and disarming tweets rant menus and Ceat Tyres need to give more leeway to the deliverthe message that
that importantly, Srinivasan played with the actor’s agency handling their social
points out, were not offensive. omnipresent status. Even KFC media, but the agency also
the actress is everywhere.
Brands have a choice when India weighed in with respons- must imbibe the brand’s cul- Its Instagram bio reads:
faced with online hate, they es to Netflix’s repartees. ture, said Srinivasan. justanother
can respond with bland Sandeep Goyal, founder of Clever conversations are @radhikaofficial fan
responses, block them or not media and brand consultancy, also a big differentiator in a account
respond at all. But when they Mogae Media, said that this world where all brands are try-
are able to hold their nerve and reflects a new environment. It ing to imbibe a homogenous | CeatTyres joins in, tagging
stare down the opponents doesn’t tie in with the old set of values. And the rapidly Netflixto its ongoing ad
without lynching them, they school marketing belief of ‘not changing social media space campaign and plays with
win followers and add heft to sticking your neck out where means that brands can afford a
their online presence. it doesn’t belong’. Brands are misstep or two.
the omnipresenttheme
Mishra says that online bolder now, but so far this has “Public memory is short so
behavior must reflect brand been largely the case with dig- if a certain post doesn’t work, a
governance. “What are the tone ital-first labels or global enti- brand can always try shooting
of voice principles and the ties. Traditional Indian brands out a different message, the
boundaries that the brand are still finding their voice next day,” said Goyal. But they
needs to work within. Much as online say experts. need to tread with care, bal-
they pretend to be otherwise, According to Vani Gupta, ancing the gains of temporary
the truth is that most brands co-founder, hypersonicadviso- visibility with the risk of losing
don’t really have a clear system ry.com, social media banter is a long term credibility.

> THE BS CROSSWORD # 3130

ACROSS
8 Crippled as camel lost it's
head and plunged into a
hole (4)
9 Barge in flailing baton,
ducking missile (6,4)
10 Eccentric water controller
goes to party (6)
11 Get Rome’s mother to lie
about military supplies (8)
12 Existing part of a verb or
noun? (4)
13 Puts one’s best foot
forward? (7,3)
17 Accompanied by
intelligence and the
beginning of humour (4) 6 Some describe rising from
18 They might respond to bed as a bloomer! (6)
some push-button work (5) 7 Dead duck, perhaps (4)
19 Charity having an 14 Occupied again? (5)
inclination to throw the
15 Bewildered and
wrong person out (4)
overwrought (10)
20 Take your gloves off and
16 How pencil should be
you will be more
sharpened? Sort of (2,2,1,5)
comfortable (4,6)
22 Being cold, the youth 19 Cruelly mock in chase for small
dressed (4) sign of past infection (8)
23 Named after losing copy... 21 Making a row inside? (6)
mine (8) 24 Looking washed-out,
27 Ordinary public land (6) having a quiet drink (4)
28 Empty letter-box for 25 My utterly sparkling kitchen,
crossword addicts? (5,5) initially, smells nice (4)
29 Called for right sort of horse (4) 26 Farewell from agency with
love (4)
DOWN
1 Mafia head’s policy about SOLUTION TO #3129
appeal to eminence in
Rome (10)
2 Cut to the quick about hole
in the ground (8)
3 Conclude gold and black
may be approved of (10)
4 Dizziness experienced
without me being
unpleasant (4)
5 I leave the animal for its fur! (4)

> BS SUDOKU # 2563 Medium:  > WEATHER TODAY’S FORECAST

Solution tomorrow O
Max/min temperatures in C

HOW TO PLAY NATIONAL

Fill in the grid so that every
row, every column and
every 3x3 box contains the
digits 1 to 9
SOLUTION TO #2562
Ahmedabad . . .Scattered Showers 31/25
Aizawl . . . . . . . . . . . . .Thunderstorms 27/20
Bengaluru . . . . . . . . . .Thunderstorm 27/19
Bhopal . . . . . . . . . . . . . . Thunderstorm 27/23
Bhubaneswar . . . . . . Thunderstorm 31/26
Chandigarh . . . . . . . .Thunderstorm 33/26
Chennai . . . . . . . . . . . .Thunderstorm 33/26
Delhi . . . . . . . . . . . . . . . . . .Partly Cloudy 35/27
Guwahati . . . . . . . . . .Thunderstorm 33/26
Hyderabad . . . . . . . . . .Mostly Cloudy 30/23
Imphal . . . . . . . . . . . . . . Thunderstorm 29/22
Indore . . . . . . . . . . . . . . . . . . . . . . . . . .Rain 26/22
Kochi . . . . . . . . . . . . . . . .Thunderstorm 30/24
Kolkata . . . . . . . . . . . . . Thunderstorm 31/26
Lucknow . . . . . . . . . . . .Thunderstorm 31/26
Mangalore . . . . . . . . .Thunderstorm 28/23
Mumbai . . . . . . . .Scattered Showers 29/26
Pune . . . . . . . . . . . . . . . . . . . . . . . . .Cloudy 27/22
Srinagar . . . . . . . . . . . . . . . . . . . . . .Sunny 31/17
Surat . . . . . . . . . . . . . . . . .Mostly Cloudy 29/26
Thiru’puram . . . . . . . . . . .Mostly Cloudy 29/24
https://t.me/pdf4exams
.
MUMBAI | FRIDAY, 31 AUGUST 2018
NEWSMAKER: VIJAY SHEKHAR SHARMA/FOUNDER/ONE97 COMMUNICATIONS
Exception to the rule
The fastidious Sage of Omaha apparently diluted his rigorous due
diligence procedures to invest in the business of one of India's most
influential e-commerce entrepreneurs
ALOKANANDA CHAKRABORTY
New Delhi, 30 August
hen Warren Buffett-owned Berkshire
W Hathaway said earlier this week that it
will invest an undisclosed amount in
One97 Communications Ltd, which
owns Paytm, two things drew attention. One, that
this was a rare deal for the world’s best-known
investor who typically avoids internet firms; and
two, the investment was committed despite the
fact that Paytm, though India’s largest payment
services provider, has reported mounting losses. It
logged total consolidated losses of ~12.6 billion in
the year ended March 31, 2017, on a revenue of
~8.28 billion. So okay, this was an endorsement for
India’s start-up ecosystem, but it also said a lot
about the maverick founder of One97.
Vijay Shekhar Sharma is an enormously
influential entrepreneur with an instant ability to
grab headlines. A Mint report on the Berkshire
Hathaway investment quoted an anonymous
source as saying that the deal was “largely about
Vijay Shekhar Sharma and Paytm”. Apparently,
Berkshire did not spend too much time on due
diligence or conducting protracted checks on
the sector or the competitive scenario, as it is
known to do.
All it took to move the needle this time was one
phone call and two meetings, is Sharma’s version
of events to various news outlets after the
announcement. It was apparently in February
that One97 board member Mark Schwartz —who
is also on the board of SoftBank Group Corp. —
suggested that Sharma meet the world’s most
renowned investor, Buffett’s Berkshire Hathaway
Inc. That meeting took place a few email
exchanges later when along with Schwartz and
Ravi Adusumalli, MD of SAIF Partners, Sharma
flew to Omaha to meet Todd Comb, a Berkshire
Hathaway investment manager.
When the investment finally came through,
Sharma was quick to acknowledge all the help that
came his way. “This day is dedicated to my
mentor, independent board member Mark
Swartz, and @radusuma (Ravi Adusumalli) who is
less an investor more a co-founder of Paytm.
Thank you everyone for support and guidance.
BRK is a milestone not just for Paytm team, for
every Indian startup,” he tweeted.
Although there might have been less-than-
usual due diligence, Berkshire Hathaway is
familiar with the payments model being a
shareholder in companies such as American
ILLUSTRATION: AJAY MOHANTY
Express, Mastercard and Visa, besides banks such
as Bank of America and Goldman Sachs. On its
part, Paytm does have quite a lot of cash to burn —
it also has the backing of China’s Alibaba Group
Holdings and Japan’s Softbank Vision Fund. By
Sharma’s own admission, that was one reason he
did not want to pick up all the money he was
offered. “Berkshire wanted to invest more than
what we have accepted. We did not think it was the
right time to raise more money and dilute further,
as we already have sufficient capital in the bank,”
he told journalists.
That said, the battle ahead won’t be easy.
Besides rivals like Amazon, Google, and Flipkart-
http://www.estore33.com/
owned Phonepe, which have already thrown their
hats into the ring, a clutch of players including
WhatsApp and Reliance Jio are ready to join the
fight for a share of India’s $200 billion digital
payment market. The market is expected to
balloon to $1 trillion over the next five years, and
Sharma — one of the youngest to graduate from
the Delhi College of Engineering (DCE) in 1998 —
is ready to play hardball.
In person Sharma appears so ordinary as to
provoke “if he can do it, why can't I” feeling. He
says he has always been a fighter. Take this —
another of his back-stories: Having studied in a
Hindi-medium school, he realised he didn’t know
English well enough to be able to take the
entrance examination for DCE. So he took a year
off after Class XII to learn the nuances of the
language. At the end of the year he could read two
books — one in English and the other in Hindi —
simultaneously. But that wasn’t good enough
for him.
In an earlier
Sharma considers interview, he had
himself an oddball told Business
when compared with Standard that when
the “south Delhi”, he looked at the
“south Bangalore- multiple choice
type” entrepreneurs. questions he was
“They have this asked, he had to look
amazing self- at the answer options
confidence having given below to figure
studied in English- out what the
medium schools or question really was.
attending colleges Even now, when he
abroad” meets other
entrepreneurs and
investors at
conferences, he feels they are a blessed lot.
Little wonder, he considers himself an oddball
when compared with the “south Delhi”, “south
Bangalore-type” entrepreneurs. “They have this
amazing self-confidence having studied in English-
medium schools or attending colleges abroad.”
There was little scope for a foreign degree.
Sharma comes from a simple family: His father
was a teacher — who wouldn’t take students for
private tuitions as a matter of principle — and
retired as the principal of Agrasen Inter College in
Harduaganj, a small town near Aligarh in Uttar
Pradesh. His mother was a homemaker and
pushed Sharma to work hard and do well through
school and college.
His family stood by his decision to do his own
thing. The only hurdle he faced in life, by his own
admission, was finding a girl to marry him. “No
parent wanted to give their daughter to a guy who
didn’t have a regular pay cheque,” he had said.
For the 45-year-old billionaire with a net worth
of over $1.7 billion, that episode must seem like a
distant memory.
https://t.me/TheHindu_Zone_official
TAKE TWO 21 <
Nestle wants your DNA
Swiss food giant has joined the trend for personalised
nutrition with a blend of AI and DNA testing
BLOOMBERG
30 August
LONGER LIFE
Life expectancyat birth is longer in
Nestle's biggest markets
The company that brought you milk
chocolate, Maggi instant noodles and | 1976 | 1996 | 2016
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Rocky Road ice cream is worried about
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your health.
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Nestle SA, the world’s largest food
company, has joined the trend for per-
sonalised nutrition with a blend of arti-
ficial intelligence, DNA testing and the
modern obsession with Instagramming
food. The programme, begun in aging
Japan, could provide the Swiss company
with a wealth of data about customers’
wellness and diet as it pivots toward con-
sumers who are seeking to improve their
Japan US China Switzerland World
health and longevity.
In Japan, some 100,000 users of the The investments come with the bur-
“Nestle Wellness Ambassador” pro- geoning interest in so-called nutraceuticals
gramme send pictures of their food via the — food-derived ingredients that are
popular Line app that then recommends processed and packaged as medicine or
lifestyle changes and specially formulated wellness aids — among consumers that
supplements. The programme can cost are increasingly sceptical about mass prod-
$600 a year for capsules that make nutri- ucts. Nestle employs more than a hundred
ent-rich teas, smoothies and other prod- scientists in areas including cell biology,
ucts such as vitamin-fortified snacks. A gastrointestinal medicine and genomics at
home kit to provide samples for blood and the Nestle Institute of Health Sciences and
DNA testing helps identify susceptibility to has been developing tools to analyse and
common ailments like high cholesterol or measure people’s nutrient levels.
diabetes. “Decades in the future, all companies
“Most of the personalised approach is will probably have to be doing it,” said Jon
driven by smaller companies, that’s why it Cox, an analyst at Kepler Cheuvreux. “The
was fairly limited,” said Ray Fujii, a partner industry has probably had a setback as
at LEK Consulting in Japan. “Nestle is tak- consumers also want natural and less
ing a further step. They’re trying to figure processed products while adding supple-
out the algorithm between the test results ments is seen as artificial or creating
and the genetic information and what they Frankenstein food.”
recommend as a solution. If they could do Some nutritionists are sceptical that
it, it’s a very big step.” tailored diet plans based around supple-
Nestle’s programme is part of a ments are useful and that they may have
change in direction for the 152-year-old more of a psychological effect than a med-
company, which sold off its US candy ical one.
unit this year amid falling demand for “Nestle’s programme is designed to
sugary treats. Nestle has made a spate of personalise diets in ways unlikely to be
investments targeted at healthier options necessary,” said Marion Nestle, a nutrition
including vegetarian meal maker Sweet professor at New York University who isn’t
Earth Foods and meal-delivery service linked to the KitKat maker. “If we think
Freshly. The company bought Canadian something will make us healthier, we are
dietary supplements maker Atrium likely to feel healthier.”
Innovations in March for $2.3 billion, its One of the early adopters among the
biggest medical-nutrition purchase in food companies was Campbell Soup,
more than a decade. which invested $32 million in 2016 in San
“Health problems associated with Francisco-based startup Habit, which uses
food and nutrition have become a big DNA and blood profiles to make diet rec-
issue,” said Kozo Takaoka, head of the ommendations, as well as offering nutri-
company’s business in Japan, in an tional coaching and tailored meal-kits.
interview in Tokyo. “Nestle must address Big Food is tapping expertise in AI and
that on a global basis and make it our genetics to navigate a sea change in the
mission for the 21st century.” He said the way consumers make choices, which has
wellness segment could eventually upended businesses from transportation
account for half of Nestle’s sales in Japan. to television.
https://t.me/pdf4exams
22
>
Slow work, hefty right-of-way
fee hurdles for data revolution
Telcos may have to pay ~100-150 bn only for fiberising towers in urban India
SURAJEET DAS GUPTA
TOWERING LOAD New Delhi, 30 August
Average right-of-way (ROW) fee per metre (in ~) The data revolution in the
country is facing major
5,000
5,000
hurdles in the form of
slow fiberisation of towers
and hefty right-of-way
(RoW) fee.
Fiberisation is the
process by which mobile
1,000-2,000
2,500
towers are connected by
underground fibres. The
1,200-1,400
RoW fee is charged by local
governments or munici-
palities for digging up roads
to lay fibres cables.
Telecom firms might have
to cough up ~100-150 bil-
lion as RoW fee only for
fiberising existing towers in
urban India. The total bill
could go up to
Source: User industry estimates; could vary widely from
~250 billion.
location to location Till now, only 25-30 per
NATIONS SHUTTING DOWN INTERNET THE MOST...
When it comes to curbing dissent and freedom of expression, some governments take the
drastic step of shutting down the internet. Across the world, internet shutdowns and deliberate
slowdowns are becoming more common and they generally occur when someone (usually a
government) intentionally disrupts the internet or mobile apps to control what people do or
say. According to Access Now data reported by Vice News,
India has the most number of shutdowns of any
country by a huge distance - 154 between January
2016 and May 2018. By comparison, second-
placed Pakistan only had 19 shutdowns during
the same period.
A report by The Indian Council for
Research on International
Economic Relations (ICRIER),
found that 16,315 hours of
intentional internet down-time
between 2012 and 2017 has cost
the Indian economy $3.04 billion.
(Jan ‘16-May ‘18)*
*An internet shutdown occurs
when someone (usually the
government) intentionally disrupts
the internet or mobile apps to
control what people say or do.
154 19 8 8 7 5 5 4
India Pakistan Iraq Syria Turkey DR Congo Ethiopia Iran
Source: Access Now via Vice News
cent of 471,000 mobile tow-
ers in the country are
linked by fibre. The rest run
on microwave linkage. Half
of India’s telecom towers
are in rural areas. However,
to sustain the huge increase
in data as well as 4G — and
later 5G — the telcos have
to go for fiberisation. For
last-mile connectivity,
fibre-to-homes is the only
way to go, and for that, too,
RoW permission will be
needed. Along with it, RoW
fee will have to be paid.
Tilak Raj Dua, director-
general, Tower and
Infrastructure Providers
Association (TAIPA), said,
“States are charging exor-
bitant RoW fee, from ~1,000
to ~5,000 a metre (m), for
laying fibre. Such a high fee
affects the overall ease of
3 3
Chad Egypt
http://www.estore33.com/
doing business and flag-
ship programmes such as
Digital India, Smart City
Mission, and 5G.”
The TAIPA claims any-
thing between 250 m and 1
kilometre (km) fibre is
needed per tower. Tower
companies say the average
cost to lay underground
fibre is ~2 million per km.
This does not include cap-
ital costs of fibre and ducts.
If included, this brings up
expenses to ~10 million per
km. Of this, the RoW fee
comprises 68 per cent. This
is the range in metropoli-
tan, Tier-II, and –III cities.
In 2016, the Department
of Telecommunications
(DoT)had brought in a RoW
policy. It had stated that
administrative expenses
shall not exceed ~1,000 per
India committed to work
with BIMSTEC, says Modi
PRESS TRUST OF INDIA
Kathmandu, 30 August
Making a strong pitch for
enhanced regional connec-
tivity, Prime Minister
Narendra Modi on Thursday,
said that India is committed
to work with the member
states of BIMSTEC — a
regional group comprising
India,Bangladesh,Myanmar,
Sri Lanka, Thailand, Bhutan
and Nepal — in the critical
sector and to combat the
menace of terrorism and
drug trafficking.
“I believe that there is a
big opportunity for
Connectivity - trade connec-
tivity, economic connectivity,
transportconnectivity,digital
connectivity, and people-to-
people connectivity,” he said
while addressing the inaugu-
ral session of the 4th BIM-
STEC summit here. BIM-
STEC member states account
for 22 per cent of the global
https://t.me/TheHindu_Zone_official
MUMBAI | FRIDAY, 31 AUGUST 2018 1
km. However, only 10
states agreed to it; in all the
others, it is under consid-
eration or there is no RoW
policy at all.
But, even in states that
have agreed to it, local
municipalities often
charge more. “The problem
is that neither the DoT nor
the states has the power or
jurisdiction over roads. The
land belongs to the munic-
ipalities and they do not
care for such a policy,” said
a senior executive of a telco
who did not want to be
named. The Cellular
Operators Association of
India (COAI) has also raised
the issue with the authori-
ties.
More on www.business-
standard.com
population, and has a com-
bined gross domestic prod-
uct of $2.8 trillion. “India is
committed to work with the
BIMSTEC member states to
enhance regional connectiv-
ity,” Modi said. This region
has become a meeting point
for India's Neighbourhood
First and Act East policies,
Prime Minister Modi said.
“TheBayofBengalholds spe-
cial significance for the secu-
rity and development of all
of us,” he added. “There is no
country in the region which
has not suffered from terror-
ism and trans-national
crimes such as drug traffick-
ing linked to networks of ter-
rorism,” he told the summit,
inaugurated by Nepal Prime
Minister K P Sharma Oli.