Mumbai, May 11 () Benchmark Sensex gave up all its early gains to end 81 points lower on Monday, dragged by losses in financial stocks as lenders beefing up provisions against COVID-19 risks stoked slippages worry. Besides, spiking COVID-19 cases in the country and tepid cues from global markets weighed on investor sentiment. After gyrating over 800 points during the day, the 30-share index settled 81.48 points or 0.26 per cent lower at 31,561.22. Similarly, NSE Nifty fell 12.30 points, or 0.13 per cent, to 9,239.20. ICICI Bank was the top laggard in the Sensex pack, cracking over 5 per cent, followed by Kotak Bank, HUL, HDFC, IndusInd Bank, HDFC Bank and Nestle India. On the other hand, Hero MotoCorp, Bajaj Auto, Maruti, TCS and HCL Tech were among the gainers. Joining peers, ICICI Bank made COVID-19 related provisions of Rs 2,725 crore to further strengthen the balance sheet -- causing worries on fiscal slippages front. "Indian market opened on a positive note following global cues as trade-war fears receded and more countries announced plans to ease their lockdown restrictions amid hopes of global economies reopening," said Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi. The traders also took note of Prime Minister Modi's meeting with chief ministers of all states which is expected to discuss the plan for exit from the ongoing nationwide lockdown to prevent the spread of coronavirus. However, the market couldn't hold the strength during the day as selling pressure was witnessed in heavy index weighing sectors like financial and bank stocks, erasing majority of gains in afternoon session as COVID-19 related one time provision were seen undercutting the earnings on the financial companies, he added. Globally, bourses in Hong Kong and Tokyo ended on a positive note, while this in Shanghai and Seoul closed with losses. Stock exchanges in Europe were trading significantly lower in early deals. International oil benchmark Brent crude futures were trading 2.39 per cent lower at USD 30.23 per barrel. On the currency front, the rupee slipped 19 paise to close at 75.73 against the US dollar. In India, the death toll due to COVID-19 rose to 2,206 and the number of cases climbed to 67,152, according to the health ministry. Globally, the number of cases linked to the disease has crossed 41 lakh and the death toll has topped 2.82 lakh. ANS MKJ

Sensex ends 81 pts lower; financial stocks drag

<ul><li>In the past two years, whenever banks spend more money on technology, the revenue for IT companies from banking, financial services, and insurance (BFSI) sees a similar jump. </li><li>This quarter, even though the tech spends by the top 8 global banks was up 3%, IT companies saw <keyword id="9716413" type="UNKNOWN" weightage="20" keywordseo="bfsi-revenue">BFSI revenue</keyword> drop by 4%. </li><li>The dip is likely a one-time thing due to uncertainty caused by restrictions around the coronavirus pandemic, according to Motilal Oswal Securities. </li><li>The brokerage firm estimates that with banks joining the digital bandwagon, tech spend will only increase and may even be a key driver of revenue of <keyword id="6357549" type="UNKNOWN" weightage="20" keywordseo="Indian-IT-companies">Indian IT companies</keyword>.</li></ul>Banks in the US and Europe are shelling out more money to step up their technology game. Yet, for Indian IT companies, which garner the majority of their banking, financial services and insurance (BFSI) business from these markets, the revenue isn’t showing up on their balance sheets this time. <div type="image" title="BFSI REV" msid="77412720" hostid="261" caption="&amp;lt;p&amp;gt;TCS, Infosys and Wipro have a lot to gain from BFSI revenue going up&amp;lt;/p&amp;gt;"></div> Over the last two years, the top 8 global banks around the world have been spending more on technology, and the aggregate BFSI revenue of the top IT companies saw a corresponding jump, until now. This time around, even though the tech spends at the top banks grew by 3%, aggregate BFSI revenue for the top IT companies declined by 4%. <div type="image" title="bfsi" msid="77414251" hostid="261"></div> Aside from <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword> and <keyword id="43217" type="CITY" weightage="20" keywordseo="Tech-Mahindra">Tech Mahindra</keyword>, all other I-T companies reported a sharp decline in their BFSI revenue. According to a report from Motilal Oswal Securities, the ramp-up in an Asia-Pacific centric insurance deal boosted the BFSI vertical in Tech Mahindra. Factors behind this one-time blip The Indian IT industry is not losing its share of the BFSI business in the long-term. The divergence in BFSI revenue and banks’ IT spend was a one-time occurrence brought on by uncertain circumstances, as per the Motilal Oswal Securities report. It attributes the discrepancy to three temporary factors: <ol><li>IT spending in areas where IT companies don’t participate.</li><li>Supply-side bottlenecks in April.</li><li>Exposure to niche sub-segments like cards or payments. </li></ol>Banks’ tech spending will only continue to grow When the coronavirus pandemic hit, banks had to adapt and embrace the digital play. If a customer could no longer come to the bank, banks had no option but to set up digital channels to reach them. And now that global banks are on the bandwagon, they have no plans of slowing down. The commentary from these banks indicated that they expect digital adoption to be sticky. On the one hand, it means spending more on technology. On the other hand, it also means not having to have a branch at every corner and boost margins with redundant tasks getting automated. “We postulated that this increase in digital engagement, led by a lack of choice, should eventually result in permanent change,” said Motilal Oswal Securities report. And, now that banks are finally joining the digital parade, a majority of their demand will be centered around cloud migration, automation, and reshaping their physical presence. In the recent earnings calls, companies like <keyword id="30331" type="CITY" weightage="20" keywordseo="HCL-Technologies">HCL Technologies</keyword> and Infosys have already indicated that they are benefitting from the consolidation opportunities.Along with <keyword id="6357585" type="COMPANY" weightage="20" keywordseo="tata-consultancy-services">Tata Consultancy Services</keyword> (TCS), <keyword id="10862" type="CITY" weightage="20" keywordseo="Wipro">Wipro</keyword> and L&amp;T Infotech, these are likely to be major beneficiaries, according to the report. BFSI revenue will be a key driver in the medium-term for Indian IT companies.

Banks are spending a lot on tech but the money is not going to Indian IT biggies yet

<ul><li>The Facebook deal is part of value unlocking by RIL to cut debt. </li><li>The latest deal is a win-win for both Facebook and Jio. It would give Facebook deeper access to India, the second largest internet market after China.</li><li>Jio was reportedly in talks with Google too but the fate of those discussions is not known. </li></ul>Facebook on Wednesday announced an investment of USD 5.7 billion (Rs 43,574 crore) to buy a 10 per cent stake in the firm that houses billionaire <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword>'s telecom arm Jio as the social media giant looks to expand presence in its largest market in terms of subscriber base. "Today we are announcing a USD 5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Ltd, part of <keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> Ltd, making Facebook its largest minority shareholder," the company said in a statement. Reliance in a separate statement said the investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value (USD 65.95 billion, assuming a conversion rate of Rs 70 to a US dollar). "Facebook's investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis," it said. Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd (RIL), houses digital services of the group. Reliance Jio Infocomm Ltd, with 388 million subscribers, is a wholly-owned subsidiary of Jio Platforms. The Facebook deal is part of value unlocking by RIL to cut debt. RIL has been seeking strategic partnerships across its businesses while targeting to deleverage its balance sheet. It has been talking to Saudi Aramco for sale of a 20 per cent stake in its oil-to-chemical business for an asking of USD 15 billion. RIL has already tied up with BP Plc for fuel business as it targets to have a debt-free status by next year. Jio was reportedly in talks with Google too but the fate of those discussions is not known. The latest deal is a win-win for both Facebook and Jio. It would give Facebook deeper access to India, the second largest internet market after China. Facebook already has 400-plus million Whatsapp users in India and is looking to launch a payment offering. Having a local partner could help it in navigating various regulatory issues, including those related to privacy and local storage. Also, having a good telecom partner could help Facebook improve its reach to masses. From an RIL perspective, it could leverage on Facebook's technology expertise and talent pool as well as help in its ambitions to make Jio a digital company. This apart, the deal would aid the company achieving zero debt status by March 2021. Since launching Jio in 2016, RIL has emerged as the only Indian company capable of competing with US tech groups in the fast-growing Indian market, expanding from mobile telecom into everything from home broadband to e-commerce. Jio has emerged as the number one telecom operator in India, both in terms of traffic as well as revenue in a virtual two-player market since the third player, Vodafone-Idea is struggling under regulatory burden. Jio's main competitor is Bharti Airtel. Facebook said the investment "underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country". "In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio," it added. Together with WhatsApp and Instagram, Facebook overall is estimated to have more users in India than any other single country. The number of internet users in India is projected to rise to about 850 million in 2022, according to consultancy PwC, up from 450 million in 2017. "The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India," RIL said. "The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalisation, within just three-and-a-half years of launch of commercial services, validating RIL's capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value," the statement said. See also: <a href="https://www.businessinsider.in/tech/news/cognizants-ransomware-attack-is-making-peers-like-tcs-and-infosys-nervous-and-they-are-beefing-up-security/articleshow/75271532.cms">Cognizant's ransomware attack is making peers like TCS and Infosys nervous — and they are beefing up security</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-ceo-says-the-business-model-is-20-years-old-and-its-time-to-go-employee-lite/articleshow/75243124.cms">TCS CEO says the business model is 20 years old and it's time to go employee-lite</a> <a href="https://www.businessinsider.in/business/news/without-rbis-help-rupee-value-might-slump-to-80-per-dollar-says-report/articleshow/75273796.cms">Without RBI’s help, Rupee value might slump to 80 per dollar says report</a>

Mark Zuckerberg's Facebook picks up 9.9% stake in Mukesh Ambani's Jio for $5.7 billion

New Delhi, Nov 28 () <keyword id="6355199" type="ORGANIZATION" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> on Thursday became the first Indian company to hit the Rs 10 lakh crore market valuation mark following a spike in its share price. At market close, the oil-to-telecom conglomerate's market capitalisation (m-cap) zoomed to Rs 10,01,555.42 crore on BSE. The stock rose 0.65 per cent to close at Rs 1,579.95 on BSE. During the day, it jumped 0.90 per cent to an all-time high of Rs 1,584.
 At the NSE, it gained 0.77 per cent to close at Rs 1,582. 
 "It was only a matter of time for business tycoon Mukesh Ambani's company to test this milestone, considering the past investments made in consumer-facing sectors like telecom and retail. These investments have yielded fruitful results for the company and has been consistently increasing their share in the overall profits," according to Ajit Mishra, VP Research, Religare Broking.
 Since the past few sessions, the company's market valuation has been hovering near the Rs 10 lakh crore mark.
 On the volume front, 2.73 lakh shares of the company were traded on the BSE and over 62 lakh shares on the NSE during the day.
 The company is still ahead of British energy major BP Plc in terms of market valuation. BP Plc's m-cap was at USD 127.86 billion at close of trade on NYSE. 
 "<keyword id="6484187" type="COMPANY" weightage="20" keywordseo="ril">RIL</keyword> today (Thursday) became the first Indian company to hit the Rs 10 lakh crore milestone in market capitalisation, after its shares rose to a record high. We will put two important factors that should be seen as a catalyst for this share. Firstly, the <keyword id="10926" type="CITY" weightage="20" keywordseo="Reliance">Reliance</keyword> Jio disruption. Second is the stake sale to Aramco has further made its valuation going forward attractive since their aim to achieve the debt-free balance sheet is likely to be seen in FY20-21," said Mustafa Nadeem, CEO, Epic Research. In October this year, Reliance Industries (RIL) hit the Rs 9 lakh crore m-cap level.
 In August 2018, it became the first Indian company to have crossed the Rs 8 lakh crore m-cap mark.
 So far this year, the company's scrip has zoomed nearly 41 per cent, much higher than the 14 per cent rise in Sensex so far in 2019.
 TCS is the country's second most valued firm with a market valuation of Rs 7,79,501.64 crore, followed by HDFC Bank with a market cap of Rs 6,92,853.48 crore, Hindustan Unilever (Rs 4,51,482.38 crore) and HDFC (Rs 3,98,994.81 crore).
 The m-cap figures of companies change daily with stock price movement. SUM MR
MR

Reliance Industries first Indian firm to hit Rs 10 lakh Cr Mark

Mumbai, May 11 () Benchmarks Sensex and Nifty erased early gains to settle in the red on Monday, dragged by an intense selloff in financial counters amid concerns that lenders beefing up provisioning against COVID-19 may escalate slippages. The BSE gauge Sensex tumbled over 800 points from the day's high to end at 31,561.22, down 81.48 points or 0.26 per cent. Likewise, the NSE barometer Nifty fell over 220 points from its day's peak to close at 9,239.20, dropping 12.30 points or 0.13 per cent. Analysts said that overall domestic market sentiment also remained subdued due to spiking coronavirus cases in the country and tepid cues from global markets. On the Sensex chart, ICICI Bank was the top laggard, cracking over 5 per cent, followed by Kotak Bank, HUL, HDFC, IndusInd Bank, HDFC Bank and Nestle India. On the other hand, Hero MotoCorp, Bajaj Auto, Maruti, TCS and HCL Tech were among the gainers. Sectorally, BSE bankex, finance, power, FMCG and healthcare indices ended up to 2.31 per cent lower. While auto index rallied 4.23 per cent. Telecom, teck, metal and IT indices too ended with gains. In the broader market, BSE midcap jumped 0.65 per cent, while smallcap index closed in the red. Joining peers, ICICI Bank made COVID-19 related provisions of Rs 2,725 crore to further strengthen the balance sheet - a concern on fiscal slippage front. The private sector lender reported a 6.91 per cent growth in March quarter net profit at Rs 1,251 crore on a consolidated basis, after setting aside provisions for potential impact of the COVID-19 pandemic over and above RBI's requirements. Almost all the private sector lenders who have reported their earnings for the March quarter have set aside additional money as provisions, including HDFC Bank, Axis Bank, Indusind Bank and also RBL Bank, reflecting the impact of the crisis that the banking system is bracing for. "Indian markets opened on a positive note following global cues as trade-war fears receded and more countries announced plans to ease their lockdown restrictions amid hopes of global economies reopening as social distancing measures are eased," Narendra Solanki, Head- Equity Research (Fundamental), Anand Rathi, said. However, the market couldn't hold the strength during the day as selling pressure was witnessed in heavy index, erasing majority of gains in afternoon session as COVID-19 related one-time provisioning was seen undercutting the earnings on the financial companies, he added. The traders also took note of Prime Minister Narendra Modi's meeting with chief ministers of all states today which is expected to discuss the plan for exit from the ongoing nationwide lockdown to prevent the spread of coronavirus. Globally, bourses in Hong Kong and Tokyo ended on a positive note, while this in Shanghai and Seoul closed with losses. Stock exchanges in Europe were trading significantly lower in early deals. International oil benchmark Brent crude futures were trading 2.39 per cent lower at USD 30.23 per barrel. On the currency front, the rupee slipped 19 paise to close at 75.73 against the US dollar. In India, the death toll due to COVID-19 rose to 2,206 and the number of cases climbed to 67,152, according to the health ministry. Globally, the number of cases linked to the disease has crossed 41 lakh and the death toll has topped 2.82 lakh. ANS MKJ

Indices reverse gains; financials topple on COVID provisioning concerns

<ul><li>Chief Economic Advisor KV Subramanian's latest survey has a dedicated chapter for the country's banking sector. </li><li>The report outlined the benefits of bank nationalisation that has been a topic of heated ever since the then Prime Minister Indira Gandhi ordered the move fifty years ago.</li><li>This is yet another signal of how keen, or not, the Narendra Modi government is in selling stake in state-owned banks. </li><li>"Existing unsold housing inventory can be cleared and the balance sheets of both bank/ non-bank lenders cleaned if the real estate developers are willing to take a ‘hair-cut’ by allowing the house-prices to drop," the survey said.</li></ul>Chief Economic Advisor KV Subramanian's latest survey has dedicated a lot of time and space to delve into the problems, and possible solutions, of the country's banking sector. The survey was generous in its praise for the nationalisation of banks, which was undertaken by Prime Minister Indira Gandhi in 1969. "In 2019, India completed the 50th anniversary of bank nationalization. It is, therefore, apt to celebrate the accomplishments of the 3,89,956 officers, 2,95,380 clerks, and 1,21,647 sub-staff who work in Public Sector Banks (PSBs)," the latest Economic Survey said. However, this was a significant departure from the stance of the Narendra Modi administration's view on the issue so far. As recently as in 2017, Modi called the government ownership of banks '<a href="https://www.firstpost.com/business/narendra-modis-gujarat-speech-if-bank-nationalisation-was-indiras-drama-he-has-a-chance-to-undo-it-4233287.html" data-type="tilCustomLink" target="_blank">Indira Gandhi's drama</a>' and claimed that he has a chance to undo it. Not the first applause for nationalisation But Subramanian is not the first person from the Modi government to laud the role of public sector banks, while a big chunk of the Bharatiya Janata Party's vote bank, especially corporate India and market participants, have been pushing the government move to privatise more. Recently, even trade minister Piyush Goyal batted for the state-owned banks saying <a href="https://economictimes.indiatimes.com/news/economy/policy/piyush-goyal-bats-for-psus-says-private-sector-is-full-of-scandals/articleshow/71224679.cms" data-type="tilCustomLink" target="_blank">'privatisation' may not be the panacea</a>. If these were to be taken as a signal for what <keyword id="7706673" type="UNKNOWN" weightage="20" keywordseo="finance-minister-nirmala-sitharaman">Finance Minister Nirmala Sitharaman</keyword> may have her in her budget speech on February 1, it may be fair to expect additional capital for PSU banks, and very little in terms of stake sale. As the survey highlighted, "In 2019, when Indian economy is the fifth largest in the world, our highest ranked bank—State Bank of India— is ranked a lowly 55th in the world and is the only bank to be ranked in the Global top 100." 
	
 <div type="image" title="banks" msid="73803282" hostid="261" caption="&amp;lt;p&amp;gt; In 2019, when Indian economy is the fifth largest in the world, our highest ranked bank&amp;#8212;State Bank of India&amp;#8212; is ranked a lowly 55th in the world and is the only bank to be ranked in the Global top 100. SOurce: India Economic Survey 2020&amp;lt;/p&amp;gt;"></div>



 There is support for disinvestment outside banks A chapter in the Economic Survey analysed the performance of 11 public sector companies before and after they privatised between 1999-2000 and 2003-04. "Analysis shows that these privatized CPSEs, on an average, perform better post privatization than their peers in terms of their net worth, net profit, return on assets (ROA), return on equity (RoE), gross revenue, net profit margin, sales growth and gross profit per employee." 
 <div type="image" title="divestment" msid="73797987" hostid="261" caption="&amp;lt;p&amp;gt;A chapter in the Economic Survey analysed the performance of 11 public sector companies before and after they privatised between 1999-2000 and 2003-04. Source: India Economic Survey 2020&amp;lt;/p&amp;gt;"></div>


 But just pumping money into PSU banks may not be enough Budget 2019-20 announced an infusion of ₹70,000 crore into Public Sector Banks (PSBs) to boost credit and investment in the economy. As of November 2019, ₹60,314 crore has been infused from this provision. India's government banks are so inefficient that the amount of money, ₹1.4 lakh crore, written off by banks is as much the country's total food subsidy. "Over ₹4,30,000 crore of taxpayer money is invested as Government’s equity in PSBs. In 2019, every rupee of taxpayer money invested in PSBs, on average, lost 23 paise," the report said. " In contrast, every rupee of investor money invested in “New Private Banks” (NPBs)—banks licensed after India’s 1991 liberalization—on average gained 9.6 paise." This may be a cue for the government to tighten the leash on bankers before they can get their pound of flesh from the taxpayer's kitty. Investment in digitising government banks Not just that, there may be a push to bring these state-owned banks up to speed with investment in digital capabilities to make them more contemporary and allow them to compete with the more advanced peers from the private sector. "The survey suggests use of FinTech (Financial Technology) across all banking functions and employee stock ownership across all levels to enhance efficiencies in PSBs," Subramanian's report said. 
 <div type="Article" hostid="261" msid="73753459" title="Exclusive: TCS CEO shares his hopes and fears from the budget 2020" mstype="2" mssubtype="0"></div>



 If Sitharaman were pay heed to this advice, she may set aside a dedicated amount for the digital transformation of these banks. This will also provide an opportunity for the likes of Tata Consultancy Services (TCS), Infosys, HCL Tech, and Wipro, who have experience in similar projects that they have carried out for global firms in the banking, financial services, and insurance space. There may be additional push for banks to increase lending The share of corporate loans in non-food credit peaked in 2013. The subsequent decline led to the economic slowdown 2017 onwards. Fall in credit starts showing in GDP growth four years later, Subramanian said while explaining his report. Here's market veteran Vallabh Bhanshali of ENAM Group, explaining the impact of lack of credit on the economy. 
 <div type="Youtube" id="Kd75yZqHQGk" title="Time for RBI to do 'whatever it takes' to save India's financial sector: Vallabh Bhanshali" thumbUrl="https://i.ytimg.com/vi/Kd75yZqHQGk/mqdefault.jpg"></div>



 Boost home sales to save banks The Economic Survey also highlighted the mess in India's real estate. While the demand for new homes has been sliding, the builders are struggling to repay loans, the prices of apartments have barely moved down. 
	
 <div type="image" title="unsold homes" msid="73803921" hostid="261" caption="&amp;lt;p&amp;gt;Source: India Economic Survey&amp;lt;/p&amp;gt;"></div>



 Any push to expedite repayment of loans may be bad news for builders but a great move for potential home buyers who are sitting on the fence. "Existing unsold housing inventory can be cleared and the balance sheets of both bank/ non-bank lenders cleaned if the real estate developers are willing to take a ‘hair-cut’ by allowing the house-prices to drop," the Economic Survey said. SEE ALSO: <a href="https://www.businessinsider.in/budget/news/these-are-the-documents-needed-to-open-a-restaurant-the-checklist-is-much-smaller-for-a-gun/articleshow/73802113.cms" data-type="tilCustomLink" target="_blank">These are the documents needed to open a restaurant— the checklist is much smaller for a gun</a> <a href="https://www.businessinsider.in/here-is-the-price-of-a-thali-in-every-india-state-and-jharkhand-has-the-cheapest/articleshow/73799864.cms?src=hp_latest" data-type="tilCustomLink" target="_blank">Thalinomics: here is the price of a thali in every India state — and Jharkhand has the cheapest</a> <a href="https://www.businessinsider.in/apple-iphone-7-and-ipod-price-and-value-addition-in-different-countries/articleshow/73801274.cms?src=hp_latest" data-type="tilCustomLink" target="_blank">Here’s how much countries gain from putting together iPhone 7 and iPod ⁠— Economic Survey’s case for ‘Assemble in India’</a>

Economic Survey 2020 has signs for what banks can expect from Nirmala Sitharaman's budget speech

<keyword id="46894" type="PERSON" weightage="100" keywordseo="Tata-Sons">Tata Sons</keyword> chairman N Chandrasekaran wants that fund managers should pick <keyword id="6355725" type="CITY" weightage="100" keywordseo="Tata-Group">Tata group</keyword> companies first before considering any other companies. For this, he has asked the CEOs of group companies to reduce their dependence on funding from the parent, strengthen their balance sheets, and build bigger projects. Chandrasekaran, who took over as the chairman of the conglomerate on February 21, believes that while lesser dependence on funding from parent company and stronger balance sheets will help fund managers take individual credit calls, bigger projects will lure more investors. These changes were mentioned at a meeting of group CEOs in early April, and were yet to come out to the world. As per TV Narendran, MD of <keyword id="6357147" type="CITY" weightage="100" keywordseo="Tata-Steel">Tata Steel</keyword> India, Chandrasekaran wants group companies to become leaders in their respective industries. "He wants that each Tata company should be part of the investment portfolio of investors.... Let's say Tata steel.... Tata steel should be the preferred stock for anybody investing in steel stocks. You have to be a relevant part of anyone investing in the sector," Narendran told <a href="http://economictimes.indiatimes.com/news/company/corporate-trends/tata-sons-chandrasekaran-wants-group-companies-to-become-top-stock-picks-for-fund-managers/articleshow/59448097.cms">ET</a>. Chandrasekaran wants leading group companies to follow the lead of <keyword id="6357585" type="CITY" weightage="100" keywordseo="Tata-Consultancy-Services">Tata Consultancy Services</keyword> (TCS) and become as popular among fund managers as it is. He also said that in order to get support from Tata Sons, companies will have to be 'deserving' enough, coming up with a better return on capital.

Tata group companies should be top stock picks for fund managers, says N Chandrasekaran

<ul><li>The ratings agency had earlier estimated a decline of 11-13 per cent, but revised the forecast considering the Covid-19 demand-supply disruptions, looming income uncertainties and increased cost of ownership of BS-VI vehicles.</li><li>Accordingly, ICRA expects two-wheeler OEMs to brace for another year of lower earnings and decline in average operating margins by 150-200 bps to 11.5-12 per cent. </li><li>Nonetheless, the price escalation and the depreciating rupee, coupled with continuous cost rationalisation initiatives, would provide some support, it said. </li></ul> Two-wheeler industry unit sales are now likely to decline between 16 and 18 per cent to around 17 million units in FY2021 on the back of the overall macro-economic scenario, <keyword id="879462" type="ORGANIZATION" weightage="20" keywordseo="ICRA-Ratings">ICRA Ratings</keyword> said on Thursday. The ratings agency had earlier estimated a decline of 11-13 per cent, but revised the forecast considering the Covid-19 demand-supply disruptions, looming income uncertainties and increased cost of ownership of BS-VI vehicles. Accordingly, ICRA expects two-wheeler OEMs to brace for another year of lower earnings and decline in average operating margins by 150-200 bps to 11.5-12 per cent. Nonetheless, the price escalation and the depreciating rupee, coupled with continuous cost rationalisation initiatives, would provide some support, it said. "The aggregate capacity utilisation levels for the industry sample is expected to decline to 55-60 per cent from around 70 per cent. However, despite moderation, the 2W OEMs will continue to have strong credit profiles characterised by healthy 'ROCE' (average ranging between 18-20 per cent) and comfortable balance sheets with negligible debt and strong cash and liquid investments," the ratings agency said in a statement. "While any major expansion plans are expected to be deferred till the demand recovers sufficiently, it is expected that OEMs will continue investing in new product development and network expansion." According to the ratings agency, fiscal 2021 started on a sombre note as the <keyword id="43587" type="ORGANIZATION" weightage="20" keywordseo="pandemic">pandemic</keyword> outbreak caused unprecedented disruptions to both supply and demand. "While the operations resumed in May 2020, the unabated rise in Covid-19 infections in unlock phase have resulted in localised re-imposition of lockdowns in several states," the statement said. "This has interrupted the pace of overall economic recovery and has led ICRA to revise its forecast for GDP contraction in FY2021 to 9.5 per cent YoY from 5 per cent estimated earlier." Notwithstanding the overall muted macro-economic sentiments, the agency said that on the positive side, the rural economy offers some growth off-shoots in the form of healthy rabi output and lower Covid-19 impact. "Higher farm income has led to sequential pick-up in 2W demand in June and July 2020. After a timely onset, monsoon progress remains healthy across most regions," the statement said. "Benefiting from favourable moisture conditions and seasonally high reservoir levels, kharif sowing has been progressing well (up 19 per cent till July 24, 2020). These factors coupled with the government's various agri-focused initiatives, are expected to support farm cash flows and 2W demand." In the urban markets, which have been more severely impacted by the pandemic, the agency said a preference towards personal mobility could push near-term demand. "However, these would only help to partially offset the adverse impact of the pandemic. Given the expectation of sharp decline India's GDP, lower job creation and income uncertainties, two-wheeler demand will most certainly remain adversely impacted," the statement said. "There is a likelihood of downtrading by consumers as well once the economy starts to cripple back to normalcy." On the export front, ICRA said that while long-term drivers remain favourable, Covid-19 fallout and volatility in crude oil prices (as it impacts demand in key markets) remain a near term negative. "Nonetheless, an attractive product portfolio and continued focus of Indian 2W OEMs on building and expanding overseas sales and after sales networks (replacement market) provides potential for growth in the medium term," the agency's statement added. SEE ALSO: <a href="https://www.businessinsider.in/finance/news/rbi-governor-shaktikanta-das-leaves-repo-rate-unchanged-to-check-inflation/articleshow/77387591.cms">‘Watchful’ RBI leaves repo rate unchanged to keep inflation in check</a> <a href="https://www.businessinsider.in/tech/news/the-beirut-explosion-created-a-huge-mushroom-cloud-and-visible-blast-wave-but-nuclear-weapons-experts-say-it-wasnt-an-atomic-blast-heres-why-/articleshow/77362144.cms">The Beirut explosion created a huge mushroom cloud and visible blast wave, but nuclear weapons experts say it wasn't an atomic bomb. Here's why.</a> <a href="https://www.businessinsider.in/business/startups/news/microsoft-for-startups-lathika-pai-says-entrepreneurs-pitching-for-investments-need-to-have-this-one-question-answered-in-their-pitch-decks/articleshow/77352935.cms">Microsoft for Startups’ Lathika Pai says entrepreneurs pitching for investments need to have this one question answered in their pitch decks</a> <a href="https://www.businessinsider.in/careers/news/linkedin-tcs-disney-hotstar-zee-and-other-companies-hiring-right-now-in-india/slidelist/77352775.cms">LinkedIn, TCS, Disney+ Hotstar, Zee and other companies hiring right now in India</a>

Two-wheeler sales in India could contract by 16-18% in FY2021, says ICRA

<ul><li>LinkedIn ranked companies that are chased by Indians to work with and stay for longer once onboard — and Flipkart tops the list. </li><li>The report assessed members on four parameters — interest in the company, engagement with the company’s employees, job demand and employee retention. </li><li>Internet companies including Amazon, Zomato, Ola and Alphabet have been dominating the top spots.</li></ul>Technology and Internet companies continue to dominate the top places to work in India, according to the latest annual Linkedin survey ranking Indian companies. While e-commerce giant Flipkart jumped to the first position from second last year, several other homegrown giants — Zomato, Swiggy and Freshworks — featured prominently among the top 25 companies preferred by Indian professionals.. Given that more millennials and even GenZ are now joining the workforce, Indian companies appear to be paying increasing attention to work culture in addition to offering better wages and exposure to the most sought-after skills. The report analysed over 610 million LinkedIn members, gauging job seekers’ interest in the company, employee engagement, job demands, and employee retention. Here are the top 25 companies <a href="https://www.linkedin.com/pulse/top-companies-2019-where-india-wants-work-now-editors-india-/?published=t">ranked</a> by the company. 1. Flipkart (Walmart) Walmart-owned e-commerce company Flipkart gave rise to many millionaires after its acquisition. The e-commerce giant, which has a headcount of over 13,000 employees in India, has been ranked first by job seekers. In fact, according to a <a href="https://www.businessinsider.in/in-india-flipkart-tops-the-fairness-quotient-for-gig-economy-workers-report/articleshow/68593359.cms">recent report on gig economy platforms</a>, in terms of working conditions, Flipkart topped the charts. 2. Amazon Even as the new e-commerce norms come into effect in India, global retail giant Amazon, has still been on a hiring spree in India with nearly 1,950 job postings, as on April 2. Presently, the company has 50,000 employees in India. It competes neck and neck with rival Flipkart, and has recently made a foray into offline segment as well, setting up <a href="https://www.businessinsider.in/amazon-plans-to-open-over-100-kiosks-across-malls-in-india-report/articleshow/68579967.cms">kiosks in malls</a>. 3. OYO Hotel chain Oyo has been diversifying beyond its flagship hospitality business. Its latest acquisition of Innov8 mark its entry into the food market and co-working space. The company is also in talks to acquire FreshMenu. As a long term goal, the hotel chain is aiming to overtake Marriott, five years down the line. It has 7,000 employees in India, according to LinkedIn. 4. One97 Communications (Paytm) One97 Communications, the parent company of Paytm, ranks fourth on the list. It boasts of flexible and informal work culture, and has apparently removed restrictions on blocking calendars, encouraging impromptu meetings. 5. Uber With a more sustainable approach, Uber aims to put 1 million green cars on Indian roads by 2022.The ride-hailing firm Uber has a headcount of 1,700 employees. The company is reportedly planning to double the new hires in the products and engineering domain. 6. Swiggy Food aggregator Swiggy, a recent entrant to India’s unicorn club, has been hiring in the areas of sales, operations and business development. The company, which has 6,000 people onboard in India presently, is also reportedly planning to <a href="https://www.businessinsider.in/swiggy-in-talks-to-acquire-ubereats-india-operations/articleshow/68110377.cms">diversify</a>. 7. Tata Consultancy Services (TCS) India’s largest IT services company, TCS, has grown four-fold since 2007. The company has been increasingly hiring fresh graduates via <a href="https://www.businessinsider.in/wipro-campus-placements-to-double/articleshow/67719782.cms">campus placements</a>, and added nearly 27,000 employees last year. 8. Zomato The food-tech unicorn, which claims to cater nearly 21 million monthly orders, is also a top employer. Its hiring has focused primarily on skills including AutoCAD, employee engagement and web content writing. 9. Alphabet (Google) Alphabet, the parent company of Google, has gravitated back to elite campus hires after two consecutive non-hiring years. The company is reportedly actively looking for engineering, machine learning, algorithms and media &amp; communication candidates. 10. Reliance Industries With Jio sweeping the Internet market and disrupting the telecom space in India, Reliance Industries has claimed the 10th position. Among its employee perks is a 24*7 assistance to an employee’s family in case of emergencies like road accidents and fire. 11. EY The company has a strength of 42,000 in India. Focussing on digital transformation, the company plans to hire 2,000 new professionals across AI, blockchain and analytics domain. 12. Adobe To keep its employees happy, the company lets its employees set aside 25% of their earned salary for stock purchase at discounted rates twice in a year. 13. <keyword id="136162" type="COMPANY" weightage="20" keywordseo="Boston-Consulting-Group">Boston Consulting Group</keyword> (BCG) With more people interested in offshore placements, this comes as a benefit to its employees, the company offers over 25% to work outside their native country at least once a year. Recently, the company hired fresh <a href="https://www.businessinsider.in/accenture-bcg-dominate-campus-placements-at-business-schools-in-india/articleshow/68045145.cms">MBA graduates</a> from India’s elite colleges — including IIMs. 14. YES Bank As it plans to expand its footprint in India over the next two years, the company is aggressively looking to hire PDS beneficiaries, along with automating the loan approvals to ease the process. 15. IBM The company has a headcount of over 100,000 in India with maximum hires taking place in the engineering, Information Technology and Consulting domain. The company is also considering cascading style sheets (CSS), HTML, jQuery skills. 16. Daimler AG Breaking the monotony, the automotive company plans to come up with 52 new products in 2019. The fastest-growing skills in the company are MySQL, Javascript and Python. 17. Freshworks Here’s a company that has an eye for alternate talent at work. The company, for instance, is open for engineering hires who are social or full time musicians. Most of the new hires in the company have been from sales, engineering and product management. 18. Accenture Accenture has been one of the <a href="https://www.businessinsider.in/accenture-bcg-dominate-campus-placements-at-business-schools-in-india/articleshow/68045145.cms">top employers</a> in the engineering domain. To retain talent, the company allows sabbaticals providing them with the opportunity for higher education. Also, employee benefits for women include an hour off during workdays to look after their children below the age of 15 years. 19. Ola The cab aggregator is focussing on bringing green cars to the Indian market. Most of the new hires in the company are for engineering, operations and business development skills. However, being a cab service provider, the company has seen demand for skills including automotive design. 20. ICICI Bank Breaking the stereotypes, India’s second largest private bank looks to cut hierarchy system to boost accountability and efficiency in the bank. Digital marketing and engineering have emerged as top skills. 21. PwC India Management consulting firm, PwC India, the company welcomes employees from not just accounts and taxation background but diverse fields such as journalists, environmentalists and design thinkers among others. 22. KPMG India One of the largest accounting firms in India, KPMG has been offering overseas assignments to nearly 3,000 employees across 100 countries in order to keep the attrition rate minimum. Accounting and consulting have been the most in-demand skills for the company while looking to hire new talent. 23. Larsen &amp; Toubro Keeping the right gender balance, the engineering conglomerate claims to have male female remuneration ratio at 1:1. The construction company has also been hiring skills such as Python coding and financial services. 24. Oracle India is Oracle’s sixth largest market in data management space. The company is looking to hire IT and engineering skills, as it plans to open its first data centre in India. 25. Qualcomm As the company eyes Indian markets, it will create 10,000 jobs in the country by establishing its largest facility outside the US, according to the <keyword id="4894774" type="PERSON" weightage="20" keywordseo="linkedin-report">LinkedIn report</keyword>.

Here are the 25 most popular workplaces in India, according to LinkedIn

<ul><li>Credit Suisse estimates that Indian banks will shore up $20 billion in capital to meet the demands of their debt.</li><li>Kotak Mahindra Bank already on the ball with a QIP worth ₹7,100 crore ($940 million) announced today.</li><li>Axis Bank is also reportedly in talks with Carlyle to raise $1 billion in funding.</li></ul>Unwilling to take risks and facing rating downgrades, India’s banks, including the biggest State Bank of India (SBI), and private lenders like Axis Bank, are on the hunt for fresh capital. However, most of it will go into filling up a massive hole left by bad loans. For other non-banking firms in the financial sector, refinancing isn’t going to come easy. Credit Suisse estimated that Indian banks will need to shore up nearly $20 billion in capital to hedge against upcoming risks as the coronavirus pandemic continues to bear heavily on the economy. More than half of the requirement, an estimated $13 billion, is going be from public sector banks, according to the investment bank. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596155/?utm_source=embed&utm_campaign=visualisation/2596155' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> “We estimate that 70% of the Indian financial system’s lending capacity is now constrained,” the report said estimating that 25% of the credit lies with public sector banks — excluding the State Bank of India (SBI) — are is yet to be free of the prior burden of non-performing assets (NPAs). Banks need money to repay about $2.9 billion worth bonds that are up for repayment in the next 12 months. “We estimate ₹2.5 trillion ($33 million) of debt is already downgraded to ratings that are likely to make refinancing challenging,” the financial services company said in its report. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596276/?utm_source=embed&utm_campaign=visualisation/2596276' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Kotak Mahindra Bank launches its QIP Kotak Mahindra Bank is already on the ball with the launch of its ₹7,100 crore ($940 million) qualified institutional placement (<a href="https://www.bseindia.com/xml-data/corpfiling/AttachLive/c2ab6c3e-ef08-4347-9281-422fd21c483b.pdf">QIP</a>). This allows the private lender to raise capital from domestic markets without the need to submit at pre-issue filings with the market regulator, the Securities and Exchange Board of India (SEBI). The equity shares will be issued at a discount of 5% on the floor price, which is close to ₹1,148 per share. Kotak Mahindra Bank's share price rallied by more than 5% on May 27. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596375/?utm_source=embed&utm_campaign=visualisation/2596375' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Axis Bank is looking to raise $1 billion Another private player, Axis Bank, is also looking to raise $1 billion to private equity firm Carlyle, according to <a href="https://economictimes.indiatimes.com/markets/stocks/news/axis-bank-board-to-meet-on-apr-25-to-consider-fundraising/articleshow/68598582.cms?from=mdr">PTI</a>. “The brass seems to be warming up to the idea of another deep-pocket marquee investor in recent weeks,” a source told the publication. An investment of this size will be that Carlyle will own between 5% to 8% stake in Axis Bank. Its share price jumped by over 13% on May 27. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596439/?utm_source=embed&utm_campaign=visualisation/2596439' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> IndusInd Bank’s Hinduja family wants to raise its stake Simultaneously, IndusInd Bank is reportedly in talks with Japan’s Nippon Life to battle the growing threat of bad loans and ratings downgrades. Like Uday Kotak, the owners of IndusInd Bank — the Hinduja family — is also looking to <a href="https://www.livemint.com/companies/news/indusind-bank-clarifies-on-fund-raising-reports-11585905610222.html">increase their stake</a> to 26% instead of the RBI’s mandated 15% in this time of crisis. Following in the steps of other banks, IndusInd Bank's share price was up by 5.8% on May 27. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596481/?utm_source=embed&utm_campaign=visualisation/2596481' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Smaller players like RBL Bank, AU Small Finance Bank, IDFC First, Yes Banks and others are also looking to go down the QIP-route for undisclosed amounts to raise capital and shore up their balance sheets. They account for 8% of the credit in the Indian financial system and have been bearing the brunt of deposit outflows and liquidity constraints, according to Credit Suisse. It’s not just banks Banks are only a part of the liquidity crunch in the economy. Non-banking financing companies (NBFCs) have been pulling back on credit since the IL&amp;FS crisis of 2018. And, with mutual funds now frowning upon investing in NBFCs, they now have limited access to funding from the domestic debt market, according to Credit Suisse. “Asset Liability Management (ALM) challenges for NBFCs are turning more severe with access to funding differentiated and a 6-month moratorium on 30% to 70% of loans,” said the report. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[<div style='width:100%!;margin-top:4px!important;text-align:right!important;'><a class='flourish-credit' href='https://public.flourish.studio/visualisation/2596549/?utm_source=embed&utm_campaign=visualisation/2596549' target='_top' style='text-decoration:none!important'> </a></div>]]></cdata></div> Even though the Indian government announced multiple measures to try and help the sector, the benefits are likely to be limited. “The government has announced a ₹300 billion special liquidity window for purchasing the securities of NBFCs. However, the scheme is for short-term paper, and available to investment grade entities, which impacts its effectiveness,” said Credit Suisse. “Our analysis shows that around ₹640 billion of borrowings for 'AA'-and-below-rated NBFCs are coming up for refinancing from April to December 2020,” it added, pointing out that sell-downs and external commercial borrowings (ECBs) are now the key avenues for them to meet their refinancing needs. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/mukesh-ambani-may-not-be-done-selling-stake-in-jio-even-after-one-sixth-of-the-telco-is-already-out-of-his-hands/articleshow/75892898.cms">Mukesh Ambani may not be done selling stake in Jio even after one-sixth of the telco is already out of his hands</a> <a href="https://www.businessinsider.in/business/corporates/news/airtel-share-price-target-as-africa-unit-nears-a-billion-dollars-in-revenue/articleshow/75970641.cms">Airtel’s Africa unit is now a nearly-billion dollar business where every user pays 40% more than the one in India</a> <a href="https://www.businessinsider.in/tech/enterprise/news/three-ways-tcs-infosys-and-other-it-giants-in-india-are-trying-to-cut-costs-but-its-not-going-to-increase-their-profitability/articleshow/76021884.cms">Three ways TCS, Infosys and other IT giants in India are trying to cut costs — but it’s not going to increase their profitability</a>

Indian lenders like SBI, Axis Bank and others need $20 billion⁠ in capital— most of it will go into filling up NPA holes

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