Indian Economy: News and Discussion

Rxbanda

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TikTok ban in India: ByteDance could lose Rs. 45k crore

Can someone explain if the loss is because of only loss of ad revenue or are there other factors involved?
 

Sanatani

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past and future... can we look at the present please?
Look how terrible the any system is in these states. Education quality is pathetic. Govt doctors don't even go to the hospitals. You have to bribe the officers for every small thing. And the police are so horrible.
All this after so much funding from the central govt.
Look at this:
At least you get your work done in Bihar and UP after paying money. In West Bengal even if you pay bribe ,babus won't work. It's time we stop all these divisive discussion. It can go on for hours without any result.
 

ezsasa

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past and future... can we look at the present please?
Look how terrible the any system is in these states. Education quality is pathetic. Govt doctors don't even go to the hospitals. You have to bribe the officers for every small thing. And the police are so horrible.
All this after so much funding from the central govt.
Look at this:
what do you expect, when the country was forced to a take a socialist path for so many decades? there is no money left for systemic reforms. most of the research money is spent on topics like
‘The Process of De-colonisation and Social Transformation in South africa, 1994-2015'.
 

indiatester

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https://www.analysis2strategy.com/2020/07/indian-stock-market-discounting-game.html

INDIAN STOCK MARKET DISCOUNTING GAME
ANALYSIS 2 STRATEGY July 05, 2020


The Indian equity markets have scaled from the March 23rd Lows to June 2020 riding on top 10 stocks which comprises the rally to the tune of 75%. The market has built up the habit of discounting the depth of the downfall of Indian GDP and macro fronts. But what the market did not take into account is how severe this downfall would be. The market till now did not have any broader rally and only selective. What the market might have taken is a mild discounting and not a very strong one.
The gap in the market and economic fundamentals are not unknown. The journey began from demonetisation phase and still continues. Only when the market faced the situation of liquidity crisis when IL&FS followed with DHFL.ZEE etc went for a wild toss the market also went for a tailspin.
So the question which comes into mind what keeps the market rising when under the current circumstances the economic condition is stalled. The assumption on the depth of the downfall and recovery keeps the game afloat. Further investors sitting at home, corporates who have ideal capital are the investor in the market. The volume on the Future and Option makes this statement very clear. The Volume on F/O is currently 41% a compared to 38% average of the FY-20.
So how long the rally or the direction of the market is predicted? The depth of the current discounting of bad news on the economy is going to tell the long term direction of the market. As the level of downfall is revised and revisited by the analyst and market the new numbers of the downfall of the market will be expected accordingly. In short, the depth of the discounting will play the cards.
Now FY-21 budget revenue and expenditure both are thrown out. Government expenditure particularly the CAPEX is coming down. The government have to balance between revenue and expenditure. The mandatory expenditures cannot be curtailed out like Interest payments -22%.Subsidy-7.5%, Defence -10%, Pension-6.93% are few of the key expenditure apart from other items. Revenue, on the other hand, likes GST and taxes are already discounted to below.
Those who are betting on consumption, the DA for FY-21 has been placed under hold. Government has shifted and more shifting to happen from capital expenditure to revenue expenditure. Many expenses at the government level have been postponed or have been placed under hold. The focus has shifted into NREAGS type schemes since that sector focus is key now based on current labour status. All investment planning has been shifted on the shoulder of PSU which will not benefit the larger economy. For the last couple of years, Private sector investment is already out of the game and now they’re no expectation for FY-21 and even for H1 of FY-22.
Sovereign ratings are getting revised and any further deteriorate in expected numbers of macro then the rating will face more hardships. Currently the government lacks a blueprint of revival and recover from all angles.
Those who are jubilant that FPI’s are back well they did not place any extra fund till now. FPI’s pulled out in the month of March to the tune of Rs.59000 cr, April-14850 cr and in May 7356. Hence the investment of June 2020 is nothing extra. Only when significantly increased inflow comes back then it’s being taken that the market fundamentals are strong enough and broad-based rally is expected.
So the market has nothing to offer. The market and investor needs a stable capital inflow and stable investors. Once the market goes for a toss like March 2020 the all the newly added investors are simply lost for the next 2 years at least. We have one set of investors who burnt their hands in FY-19 and now in March 2020. We are just awaiting for another. Well, these new WFH investors are more short term focused and they are going to flee before the fire and after the smoke.
Coming back to the stock market and it's the way forward well this year till now Gold went up by 26% and Government papers went up by 7% and equities are down by 25%. So don’t be blind sighted and have an asset allocation based model for investments in these times. Stop wasting time on spotting the big rally. Invest in quality stocks with strong management.
The government won't have money, retail people don't have money and corporate don't have money then who buy the goods and how the market and stock revenues will come and from where?
 

here2where

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8 lakh homies inbound. This from just one country. Imagine the chaos if the other ME countries also bring in such legislation. Already i think Saudi has some anti-foreigner measures in place.

Eight lakh Indians may be forced to leave as Kuwait approves expat quota bill


There is just too many of us.
 

Varun2002

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^
Wouldn't Kuwait be bereft of a huge number of workers, who do most of the labour there. And also many professionals? Just looking at it coldly practically.
 

BangaliBabu

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Rxbanda

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We used to buy from various parts (of the world) including China and import high-end bicycles. Now, we are designing them in our German R&D facility. We had a buying plan of Rs 900 crores which will be reduced in a phased manner: Hero Cycles MD Pankaj Munjal
-------------------
Good to see Indian businessman taking up the war against China. Jindal, Mahindra also made similar statements
 

Rxbanda

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HariPrasad-1

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8 lakh homies inbound. This from just one country. Imagine the chaos if the other ME countries also bring in such legislation. Already i think Saudi has some anti-foreigner measures in place.

Eight lakh Indians may be forced to leave as Kuwait approves expat quota bill


There is just too many of us.

Very nice. If Kuwait is able to run itself without Indians, it will be an achievement.
 

HariPrasad-1

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Bravo India

Flag of India

! Prime Minister Narendra Modi is set to inaugurate Asia’s largest 750-megawatt Rewa ultra-mega solar power project in Madhya Pradesh today. India is soon becoming a solar super power!

This is the time to evaluate projects in economic terms rather than in financial terms only. Had similar capacity power project of coal based plant been installed, it would have used 2200000 liters of water per hour. Now we can use this water for other better purpose.
 

HariPrasad-1

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India's forex reserves hit fresh all-time high, touch $513.25 billion

In my opinion, Rupee should strengthen now. I had expected it much earlier but my predictions went wrong. Now it seems that Modi government has learned the economy and putting the things right for long term. By the end of Modi 2 government, India should shining. We are all set to be a trade surplus economy in one year time. We shall not need remittances or loan to finance trade deficit. Imagine we have trade surplus and over 80 bn USD remittances. With the arrival of solar power and battery operated vehicles, our energy requirements is by and large taken care off without import. It will be a golden period for Indian economy. Our focus should be on population control and strengthening of agriculture sector and rural economy. Rest of the things need simplification removal of beurocrate hurdles. They don't need support. Water harvesting, growing big jungles should be our priority.
 

Rxbanda

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Can someone please explain or provide a reliable reference (which explains in common man language) for how RBI earns Forex?
Also, I believe Govt. must be having a war chest. Is it different from this RBI's reserves? And, is there any info disclosed to public about how big is our war chest?

Thanks.
 

Kalki2020

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8 lakh homies inbound. This from just one country. Imagine the chaos if the other ME countries also bring in such legislation. Already i think Saudi has some anti-foreigner measures in place.

Eight lakh Indians may be forced to leave as Kuwait approves expat quota bill


There is just too many of us.
Now where is the cabal of left/liberal/activist/humanist
which swears for equality & humanity worldwide against such discriminatory bill to drive out huge population & rendering it jobless. Where are those circumcised-suckers who were few months back were complaining to the employers of Hindu working in ME promoting ezzlamophubia.
 

HariPrasad-1

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Can someone please explain or provide a reliable reference (which explains in common man language) for how RBI earns Forex?
Also, I believe Govt. must be having a war chest. Is it different from this RBI's reserves? And, is there any info disclosed to public about how big is our war chest?

Thanks.
Now we have a huge 500 bn + reserve. We must work out the ways to deploy it in most efficient way. Earning only 3%interest may earn us 15 bn USD.i have opened a thread also on this topi but little input came from any member.
 

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