Weekly Dossier – Markets volatility to Parle-G highest sales growth
Last week was pretty interesting in fact the markets have confused. Starting with a positive look for the first 3 days and then creating a fear among the investor by the weekend. But Friday was the most interesting day if you have observed the rally. Let me get it clear. On Friday the markets saw a huge sell-off and indices opened in negative in the morning, but when it comes to closing bell major indices closed in positive.
What made the markets to behave in such up and downtrends? the markets started to rise in the week due to the lifting of restrictions. Everything related to the economy is started slowly and this gave the investors hope and started to invest. The bulls were on full swing. But when it comes to Thursday, the US markets have fallen down. This is mainly because the investors were unhappy with the US Fed. This reflected in the Indian markets on Thursday and Friday opening. But the hope of investors brought the market to recover. The main reason for the downtrend of markets may be assumed as fear among the investors for another downtrend. But bulls have succeeded in bringing it back to a positive closure.
Lets get onto what we have covered last week.
Reliance Jio will lead India’s new Digital Revolution
When the entire country in fighting with the pandemic, Mukesh Ambani is on the run to make the Company Reliance debt-free by 2020. In the past few weeks, many foreign investors including Facebook and General Atlantic have invested in Jio Platform including many others. This led everyone to think about the plan Jio has for India.
In this article, we will carefully analyze what is Jio platform and why major foreign Investors are rushing to buy a share in Jio Platform and what this means for Indian Economy. Read Here
Takes Years to Recover – Monetary Policy Committee
The last meeting of MPC was held between May 20-22nd 2020. And these meetings have a significant role to play as the committee to analyze the present situation of the economy due to covid19 and the effect of lockdown on the economy.
Later this Friday, on June 5th, the Minutes of the meeting are released to the public and these reveal some challenging things. the situation of the economy is very much affected by the covid19 and the lockdown across the country.
The policy rate, or repo rate, was reduced by 0.40 percentage points, taking the cumulative reduction in the policy rate between February 2019 and May 2020 to 2.5 percentage points. This step was needed in the present situation to ensure stability in the economy and provide growth to the damaged economy. Read full here
The Tale of Parle G – Icon for Swadeshi victory
Parle G, the 80-year-old Swadeshi company has reported that during the covid19 lockdown across the country, the sale of biscuits have seen huge growth and is the biggest in the last 3 decades. This comes to one point that swadeshi is always the primary choice of the country.
So how did a company sustained for this long competing with all the major foreign players in the market and still maintaining its market share.From Children to youngsters to senior citizens, the name of Pare-G has grown with the life of all across the country. Many consider it as an emotion for childhood memories, memories that remind of the sweet moments of life. The name “Parle-G” has a brand value in the hearts of millions of Indians and represents childhood memories. Read its story here
Franklin Templeton Crisis – India’s Top Mutual Fund House Story
Franklin Templeton is one of the most trusted and one of the top 10 mutual fund house in India. The MF house manages different funds which involve different risk to reward ratio. But on April 24 2020, the company announced that it is closing 6 of its funds due to adverse effects of covid19 on these funds. And these funds are damaging the entire portfolio of franklin Templeton.
When the fund house decides to close a mutual fund under its management, it means that it stops all operations with than fund and will start looking for buyers of assets under that fund. It will sell the assets and then the money collected will be given back to investors. Now since the operations are stopped and it has to wait for a prospective buyer the money of investors are blocked until the assets are sold. And at the same time, if the fund house rushes to sell the assets, it might sell at a discount which at the end affect the investors of these funds.
Overall the investors of these funds will have to bear the losses and will have to wait until the assets under this funds are sold and money is released by Franklin Templeton MF India. There is no specific timeline guarantee that is given by the company as of now and investors money is considered to be locked. Read here
U.S Section 301 Probe against India
On June 2nd 2020, the US has initiated a probe against ten countries and India is one among those countries. This probe is against the digital taxes that are being levied by these countries on the services of US companies such as Linkedin, Netflix and others. The claim is that these taxes are unfair and inequitable and discriminatory, burden and restricts US commerce.
India started Imposed a tax known as “Digital Tax” on companies that generate revenues by providing digital services. This tax, in general, applies only to large non-resident companies with an annual turnover of more than $267,000 and provides online digital services. Now The US official claim that this particular tax “DST” is unreasonable and inequitable. Read here
Have a Safe Weekend
Now that’s it for this week. We have tried to cover the major issues and stories that are happing around. We hope you like it. We have been hearing a good feedback from the users and we hope to provide you the best articles possible. If you want a specific topic to be researched, just mail us at [email protected] we promise we come with the best article for you.
Keep a look at our Week ahead post to track the importing things that to be noted for next to watch out for.
Until next week..