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<ul class="summary-list"><li>Equity investors have been focusing too much on <keyword id="6371181" type="UNKNOWN" weightage="60" keywordseo="interest-rates" source="Orion">interest rates</keyword>, said SoFi's head of investment strategy. </li><li>Rates "can be a poor indicator of equity market behavior," Liz Young said in a blog post Thursday. </li><li>Tech stocks can outperform the <keyword id="11898248" type="UNKNOWN" weightage="60" keywordseo="sp-500" source="Orion">S&amp;P 500</keyword> even in the face of a rising 10-year yield, the online lender said. </li></ul>Stock investors have been engrossed this year by moves in the US <keyword id="12067910" type="UNKNOWN" weightage="60" keywordseo="10-year-treasury-yield" source="Orion">10-year Treasury yield</keyword>, but they would be better off concentrating on broader factors such as economic growth, said the head of investment strategy at online loan services company SoFi. "We're obsessing too much. Rates matter, but they shouldn't drive too much of your allocation decisions and they can be a poor indicator of equity market behavior," said SoFi's Liz Young <a href="https://www.sofi.com/blog/liz-looks-rate-implications/">in a blog post Thursday</a> that zeroed in on the 10-year yield. The yield is tied to a range of lending programs including mortgages. Bond yields rise when prices fall.The yield hovered around 1.23% on Thursday and Young expects it to move higher through the rest of 2021. "Instead of focusing so much on rates," she said, "I think we can be better served by focusing on economic growth, corporate fundamentals, and the state of the global consumer." Investors during the year have sold off pricey, large-cap tech stocks as the 10-year yield quickly ascended to 1.75% in March, reaching highs not seen since before the COVID-19 outbreak was declared a pandemic in early 2020. SoFi examined the usage of the 10-year yield as an indicator of sector winners and losers and "surprisingly" found that technology beat the S&amp;P 500 index by 8.7% when yields rose and beat it by 4.4% when yields fell. SoFi reached that conclusion after finding 16 periods when the 10-year yield moved meaningfully up or down - or a move of 1.3% to 1.5% - between November 2008, when quantitative easing by the Federal Reserve began, through today.The small sample is size, but it was important to isolate the QE regime, said Young, referring to the central bank's bond-buying program. The question for financials was how well they perform in the face of yield changes, as that sector is widely known to benefit from higher rates. SoFi found that financials beat the S&amp;P 500 by an average of 7.4% when yields rose. Even with tech stocks sometimes bearing the brunt of higher yields, the S&amp;P 500 information technology sector this year has climbed about 22%. The S&amp;P 500 financial sector has soared about 28%, with each group contributing to pushing the US equity benchmark up by 20% and to record highs. Young also noted that demand for 10-year Treasurys is strong and at "unprecedented levels" among foreign buyers and that domestic demand is plentiful from large institutions that need to manage liabilities and risk. "That level of demand keeps a lid on yields, and a lid on yield volatility. And since it's demand outside the Fed, even when tapering begins, the lid may loosen, but stay on the jar," said Young. "Bottom line: movements in the 10-year yield and its absolute level cannot be viewed as direct reflections of economic expectations or monetary policy action," she wrote.

Investors are 'obsessing too much' over interest rates and should focus on growth and consumer conditions, says SoFi's head of investment strategy

<ul><li>The banking, financial services and insurance segment for most IT companies in India showed underwhelming growth in the third quarter of the financial year 2020.</li><li><keyword id="30331" type="CITY" weightage="20" keywordseo="HCL-Technologies">HCL Technologies</keyword> was the only company to report double-digit growth among the Tier-I group.</li><li>Companies remain cautiously optimistic about the coming quarter pegging growth in BFSI to deals in pipeline getting finalised.</li></ul>HCL Technologies was the only Indian IT company this quarter to report double-digit growth of banking, financial services and insurance (BFSI) segment. On a year-on-year basis, Infosys, Tata Consultancy Services (TCS) and Wipro lagged woefully behind although, for them, the contribution of BFSI to their overall revenue is much higher. All 3 companies make nearly a third of their revenue from the BFSI segment. 
 
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 However, all three companies and their shareholders have had mixed reactions to the slowdown in BFSI. BFSI is a macro challenge, not a Wipro challengeDespite <a href="https://www.businessinsider.in/business/corporates/news/wipros-profits-and-margins-fall-even-as-its-digital-business-grows/articleshow/73249220.cms">Wipro’s marginal growth in BFSI</a>, earnings from the segment accounted for nearly one-third of its overall revenue. Half of Wipro’s top clients are from the BFSI segment. However, over time, the share of revenue from the top five has been declining. Wipro’s CEO Abidali Neemuchwala feels that any Wipro-specific BFSI challenges have been addressed. [make it embed quote] “BFSI is a macro challenge and it’s not a Wipro-specific challenge. In the last 2-3 years, we had industry-leading growth in BFSI,” he told <a href="https://timesofindia.indiatimes.com/business/india-business/course-correction-done-we-are-slowly-taking-off-wipro-ceo-neemuchwala/articleshow/73289293.cms">Times of India.</a> HCL Tech remains cautiously optimistic Regardless of how companies expect demand to move, overseas clients have been taking more time to finalise deals across the board. However, HCL Technologies CEO C Vijayakumar feels that it’s nothing new. 
 
 <div type="ExtQuote" text="“I would say that it doesn’t have anything to do with the macro environment. It’s just the whole decision-making process. We’ve seen momentum in the last few days and we believe our Q4 will be a strong booking portfolio,”" auname="C Vijayakumar, HCL Tech CEO"></div>




 Given their performance, it’s <a href="https://www.businessinsider.in/business/corporates/news/hcl-raises-full-year-guidance-after-winning-a-dozen-new-deals/articleshow/73329323.cms">not surprising that HCL Technologies</a> leadership has a positive outlook for the coming days. “The best way that we define the demand environment is to really look at the deal pipeline. Our pipeline is at a historic peak. Our pipeline is very good. So I’m optimistic about the demand environment,” said Vijayakumar. Infosys feels BFSI is a mixed bag While expecting strong demand from clients, Infosys claims that BFSI is somewhat of a ‘mixed bag’. “We have seen more than anticipated further impact in Europe and the rest of the world. However, we have, on the positive side, seen some growth in North America — banking in North America. That's been a mixed bag. We expect some degree of softness to continue in the coming quarters,” said UB Pravin Rao, COO at Infosys, during the company’s earnings call on 10 January. The company <a href="https://www.businessinsider.in/business/corporates/news/infosys-earnings-report-muted-quarterly-growthly-of-1-in-q3-2020/articleshow/73190620.cms">increased its full-year guidance</a> for revenue growth to 10-10.5%. “Q3 results further underscore that we remain steadfast in our journey of sustained client relevance and deepening engagement with them,” said Salil Parekh, Infosys CEO. TCS blames structural challenges Tata Consultancy Services (TCS), the world's third-largest IT services company, has spun a totally different narrative to the BFSI slowdown. “We are gaining market share,” declared N Ganapathy Subramaniam, COO of TCS, at the post-earnings conference. To be clear, the subdued demand should be as bad on TCS as it is for Infosys or Wipro. Moreover, North America is the company’s biggest market — it accounts for more than half of TCS’ revenue — and, BFSI witnessed the slowest growth in that geography of a mere 4.1%. But the management has a different take on it. “BFSI was a complex story. While there have been no budget cuts at our clients, they want more with less and want to optimise their operations,” CEO Rajesh Gopinathan said during the call with analysts, adding that the company managed <a href="https://www.businessinsider.in/business/news/these-are-the-big-deals-bagged-by-tcs-in-the-the-last-three-months/articleshow/73329078.cms">to bag 20 new deals</a> in the quarter. Simply put, what the management is saying is as the sector slows down, companies are investing in optimising operations to make themselves cost-competitive. And, according to the management, TCS’ size and scale put it in a better position to corner the lion’s share of the market⁠— a move that will pay off rich dividends when the demand improves. Investors will have to wait and watch to see if the strategy pays off. See also: <a href="https://www.businessinsider.in/business/corporates/news/wipros-profits-and-margins-fall-even-as-its-digital-business-grows/articleshow/73249220.cms">Wipro's profit and margin fall even as its digital business grows</a> <a href="https://www.businessinsider.in/business/corporates/news/hcl-raises-full-year-guidance-after-winning-a-dozen-new-deals/articleshow/73329323.cms">HCL raises full year guidance after winning a dozen new deals</a> <a href="https://www.businessinsider.in/business/corporates/news/infosys-earnings-report-muted-quarterly-growthly-of-1-in-q3-2020/articleshow/73190620.cms">Infosys has raised full-year growth guidance⁠— the stock market was a step ahead of it</a>

TCS, Infosys, HCL Tech, and Wipro have different reactions to the slowdown in banking, financial services, and insurance

<ul><li>The year 2020 was an unprecedented one. It has been particularly difficult for smaller agencies to survive with the big sharks. </li><li><keyword id="4349638" type="PERSON" weightage="20" keywordseo="pooja-trehan">Pooja Trehan</keyword>, Co-Founder, <keyword id="10736859" type="UNKNOWN" weightage="20" keywordseo="PRPOI">PRPOI</keyword>, shares a few tips for professionals who are planning to start Public Relation agencies in a volatile environment. </li></ul>India and Singapore rank amongst the top 10 cities in Asia for best startups in various studies. Yes, you read that right! Media reports tell us that these two cities alone are home to 34 unicorns, and 52 soonicorns with a potential to become unicorns by 2022, the world’s second largest startup ecosystem is poised for disruption again. Home to over 40,000 startups, the city of Singapore houses six out of the 12 Southeast Asian unicorns. And is ranked #1 in Asia for innovation, and #8 globally. Whilst you let these impressive numbers sink-in, one invariably starts to believe, the immense rise of PR agencies catering to the startup ecosystem for these Asian Tigers. And as the PR industry was just about making a dent in the industry, along came 2020 and turned the industry upside down. And this led us to plan a panel with Jeremy Foo, Founder and CEO, Elliot &amp; Co, Singapore and Kunal Kishore, Founder, Value360 Communications, India. The panelists delved into the impact that 2020 bought upon the startup-ecosystem, making it critical for PR agencies to pivot their approach and ideas if they want to not just survive but thrive in 2021. The complexities of both the markets – Singapore and India – needed lots of tweaks to the rulebook with a quick adaptation of the constant changes. Picking out some disruptive and re-imaginative ideas from the wonderful conversation with the panel. Working closely with founders: Educating founders about PR and how the process of storytelling works is a learning in itself. Founders are extremely passionate about every innovation they do, and sometimes this becomes very challenging, when one has to tell them that everything might not be exciting for media. The attachment that founders have sometimes becomes challenging to explain them to let go. But this is when professionalism of a communicator becomes the core of beginning any PR campaign. Startup is a closed community, so the ecosystem quickly refers great talent to other portfolio companies, which makes it easier for PR agencies to establish their foothold (that is if you have delivered well). Engaging with prominent faces in the world of startups, and joining the journey of building unicorns, helps to learn a lot and get insights into their leadership style. Adept skills for a PR professional when servicing the Startup ecosystem: One needs to begin with understanding the sector you work for, so as to apply an integrated approach. However, 2020 bought a paradigm shift, where one now has to visualise a holistic approach to communications, plan better conversations through PESO, stay ahead to identify and learn about new – age tools. Importantly, a communicator needs to evaluate the consumption pattern of content digitally and accordingly build relevant content for consumers. One will have to work on sensitivity in the current volatile market, considering audiences have more than enough platforms available to express themselves. Today, PR is beyond just delivering stories, Unicorns want to see the impact and ROI communication campaigns are building. How pandemic has changed the Start Up PR industry now: Being a <keyword id="1272027" type="ORGANIZATION" weightage="20" keywordseo="PR-agency">PR agency</keyword> for the startup ecosystem is now pretty mainstream now. The entire ecosystem has been evolving and witnessed many changes at micro level as well as social level. Infact, previously the larger firms overlooked the potential of startup brands, which the pandemic changed, bringing increased interest for the startup PR system. Last year also saw a lot of young entrepreneurs emerging out of the PR industry catering to the startup fraternity. Big firms are building small focused teams for the same. Previously, #techology and #financial turned out to be huge categories for startups, but now every sector will see technology sprouting a startup business. Media advisory for brands beyond just funding news / pitch Focus on the storytelling, if it’s a good story, it will attract enough attention. One needs to look beyond designing narratives around the fund-raising initiatives. The funding process is once in 18 or 24 months, beyond that in the startup world one has to drive communication basis a good assessment to pick from the pool of stories lying with clients. In a marketplace, there are huge possibilities of different stories, an opportunity to look at different types of audiences and explore different regions. Track how these marketplaces are expanding the micro entrepreneurs and that is one way for you to build a new conversation. The above is by special arrangement via a collaboration with PRPOI Watch the video here: <div type="Youtube" id="JwA_y2eV7O0" title="Ep 34 : Start Up PR : The New Rulebook" thumbUrl="https://i.ytimg.com/vi/JwA_y2eV7O0/mqdefault.jpg"></div>

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Investors are 'obsessing too much' over interest rates and should focus on growth and consumer conditions, says SoFi's head of investment strategy

Carla Mozée

TCS, Infosys, HCL Tech, and Wipro have different reactions to the slowdown in banking, financial services, and insurance

Prabhjote Gill

Startup PR: What you should know in 2021

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