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NEWSLETTER
07 DECEMBER 2020 TO 13 DECEMBER 2020
NIFTY50 graph
THIS WEEK'S NEWS
AND UPDATES
Issue 33
Source: Google
AUTO & AUTO ANCILLARY
These are the top bikes that are lined up for launch in 2021
There is no official declaration about the launching dates but based on the hints it can be predicted that in a short
time bikes will be in the market.
Bajaj Pulsar RS400 came to light at the 2014 expo and it has a 373.2cc engine and has a maximum speed of 165
kmph. The first-ever cruiser bike from the TVS, TVS Zeppelin, came to light in the 2018 expo; powered by 220cc
air-cooled engine. Royal Enfield cruiser 650 powered by a 648cc air-cooled twin parallel engine is also in the line.
Kawasaki unveiled its 2021Ninja ZX-10R last month, which has 998cc four-cylinder inline engine. Suzuki Intruder
250 will fight against Bajaj Dominar 250, Royal Enfield Bullet 350, and Bajaj Avenger Cruise 220 in the Indian
market.
By Yash Bhave
The sale of passenger vehicles in India has shown consistent growth over the past three months. The opening up
of the economy gradually and consumer sentiment shift is said to be the major contributors. Simultaneously there
has also been a demand pick-up both in the rural and semi-urban market. A similar three-month-long trend is back
after three long years of passive automobile sales. However, the two-wheeler could not keep the momentum
running and fell by 21.1% y-o-y to 1.41 million units. Nevertheless, the m-o-m growth is still consistent in both the
markets.
Source: Google
By Ankit Bhattacharjee
RBI asked HDFC Bank to halt the issuance of new credit cards and all its planned activities under digital 2.0. This
action was undertaken after the recent incident of outrage in internet banking, mobile banking, and payment
utilities of the bank, making customers complain of payment stack being inoperative. This outrage was due to
power failure in the bank’s primary data center. The bank informed analysts that it can take around three months
to improve the architectural efficiency of its IT system. The bank has started working on firming the disaster
recovery system which would be reviewed by the bank’s internal committee, RBI, and an independent expert.
Source: TOI
By Akash Pareek
State-run Canara bank reported on 11/12/2020 that it has successfully raised INR 2000 crore equity capital. The
eligible investors were issued 19 crore shares at a floor price of INR 103.50 per equity share. Life Insurance
Corporation(LIC) surfaced as the largest investor in the issue with an allocation of 25% of the total shares, followed
by BNP Paribas Arbitrage at 9% and Nippon Life India Trustee Ltd at 8.81%. Post the allotment of equity shares via
QIP, the capital share of the bank increased by 13.2% and stands currently at INR 1646.74 crore.
By Goutham S
Samsung will invest about INR 4825cr in India while shifting its mobile and IT display production units to India.
They are planning to relocate the units to NCR in Uttar Pradesh where it already has a production unit that was set
up in 2018.
India will become one among the three countries to accommodate such a high technique unit. The UP
government has permitted special enticements to Samsung Display Noida Private Limited. This initiative would
create around 510 direct employment opportunities as well.
As of now, the major production centers for Samsung are South Korea, Vietnam, and China. India is expected to
be another major production hub for Samsung soon. Samsung had also informed the government about starting
TV production in Chennai by December 2020.
By Anjali Suresh
The Bureau of Indian Standards (BIS) has brought in new standards to be followed by certain home appliances.
The new standards would be applicable for multiple products including consumer durables such as household
refrigerating appliances.
These appliances will have to abide by the new standards as per BIS and also bear the stand mark under a
license from the Bureau. The norms apply to both Indian and multinational companies and is expected to come
into force by Jan 2022.
The quality control has been mainly issued due to the import surge of cheap products from countries like China.
This move is expected to reverse the trend by restricting such imports into the country.
By Akhil Radhakrishnan
By Raveendiran Kanagarajan
Earlier this year, after the pandemic struck India and demand fell drastically, Moody’s downgraded the power
sector’s outlook from stable to negative. The rating company maintains its position owing to a couple of factors
such as the DISCOMs' outstanding dues to power gencos, regulatory difficulties, and weak power demand.
By the end of October 2020, the total dues by the DISCOMs stood at over INR 1,38,000 crores – an increase of
around 29% compared to the previous year. According to portal PRAA, in October 2019, DISCOMs owed a total of
INR 1,06,734 crore to power generation firms.
The report also said that the cash flow for the coal-driven power generators will weaken in the long term because
of increasing renewable competition and environmental compliance costs. But the cash flow of most rated
issuers is expected to recover or stabilize in the next 12-18 months.
By Rohitsurya
IRDAI had brought about various reforms in the health insurance sector in October, one of which was the option to
pay a premium in monthly, quarterly, or half-yearly installments. Since then, a significant number of people from all
age groups have started availing benefits of the monthly payment option offered by insurers.
According to a survey done by Policybazaar, from September to November, around 35 percent of the people have
opted for monthly payment mode under a comprehensive health insurance scheme and the numbers are
increasing.
With the introduction of the installment option, policyholders can now afford to pay for higher health insurance
coverage. The option is a big relief for people who recently have undergone a pay-cut or have lost their jobs due to
the ongoing pandemic. The installment option is also beneficial for senior citizens who usually pay a very high
amount of annual insurance premium. Thus, the installment payment option is expected to bring significant
growth in the health insurance sector and will also attract people from semi-urban and rural markets.
By ANINDYA SENGUPTA
In one of the recent issues of our Newsletter, we shared the upcoming trends and growth drivers of the Insurance
Industry in India. While one of the most important drivers is technology, we cannot undermine the efforts of the
regulatory body -The Insurance Regulatory and Development Authority of India (IRDAI) has continuously brought
reforms and updates to spread awareness and boost the demand for Insurance. In one such act, IRDAI has
released guidelines for Standard personal accident insurance policy to be issued by all general and standalone
health insurers. The product will be offered on an individual basis with a minimum insured sum of INR 2.5 Lakhs.
By Ankita Mandhyan
In an interesting turnaround in the telecom industry, the September numbers paint a very positive picture for Airtel
as it added over 3.8 million customers in the month. The number was pegged at just 1.5 million for JIO during the
same period, which is almost less than half of Airtel’s figures. Active Subscriber base, an important metric in the
Telecom industry, also showed similar positive signs for Airtel with the growth of another 3.8 million there whereas,
JIO saw an upside of only 0.7 million. Both these giants are on the hunt for customers leaving VI but, current
numbers give a clear indication that Airtel is leading the expansion and is on its way to regaining its past glory.
By Rishabh Kalpavriksha
Tata Consultancy Services has expanded its business in Austin, Texas by constructing a new facility which will
hire more than 400 professionals in the city. TCS is ready to invest more than $100M in Austin by 2022. Overall, it
aims to hire additional 10,000 employees by 2022 all over the U.S.
Although the Trump administration’s changes in H1B visa regulations have been scrapped, many IT firms
continue to be skeptical about the H1B Visa denial rates. Many IT firms including, Infosys, Tech Mahindra, L&T,
Cognizant have reported high denial rates while TCS has the lowest denial rates among these firms. This shows a
positive outlook for the expansion plans of TCS in the US.
By Susmitha Nekkalapudi