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Bajaj Auto 3776.50 (-0.40%)
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Bharti Airtel 702.35 (0.88%)
Britannia Inds. 3697.85 (0.14%)
Cipla 922.50 (1.65%)
Coal India 173.60 (-0.83%)
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Covid 19: A pain for Summer Stocks

summer stocks
by Nikita Bhoota 12/05/2020

As the temperature begins to rise, the experts generally recommend investors to buy stocks of companies associated with air conditioners, cooling systems, consumer durables and tours & travel that normally see an uptrend between March and June. Some of the other categories that benefit from a harsh summer include makers of talcum powders, ice creams, juices, fruit and aerated beverages, deodorants etc.

However, this year the scenario seems to be opposite. The demand for consumer durable goods, ice creams and beverages are shattered. The spread of coronavirus (Covid19) disease all over the world and in India has resulted in shutting down the manufacturing activities in the country.  Also, the consumers of beverages and ice creams are recommended not to consume these products to curb the spread of Covid19. Similarly, the aviation and hotel industry are not allowed to carry on their operations. Thus, the market performance of stocks associated with manufacturing and services like consumer durables, beverages and tours and travels will be adversely affected.

Company Name



Gain/ Loss

Indian Hotel




Mahindra Holidays








Vadilal Industries




Varun Beverages




















Source: BSE

Indian Hotel

Covid-19 outbreak and the control measures introduced by the Centre have resulted in a severe drop in foreign and domestic travel, across both the tourism and business traveller segments. As per the Media reports, the hotels’ sector witnessed a decline of more than 65% in occupancy levels in the third week of March 2020 as compared to the same period of the previous year. Indian Hotel is the major brand in hotel sector in India. The stock price have declined 49.5% from March 02, 2020 to May 08, 2020.

Mahindra Holidays

Mahindra Holidays has over 55 resorts in India and 52 internationally, with over 2.51 lakh members. Due to complete lockdown in the country, the business of the company will be highly impacted. The company had suspended the operations in most of the resorts for the time being till 31st March, 2020. The stock price has tumbled 41.3% from March 02, 2020 to May 08, 2020.


Blue Star stock slips 40.9% on halting operations due to the COVID-19 outbreak. Blue Star is an air-conditioning and commercial refrigeration company. The company conducts various activities, such as electrical, plumbing and fire-fighting services. Its segments include electro-mechanical projects and packaged air conditioning systems, and unitary products.

Vadilal industries (VIL)

A harsh summer bodes well for ice-cream makers like Vadilal. However, this year the spread of Covid 19 has affected the consumption and production activity of the company. VIL operates in two major segments – ice cream, under the brand name Vadilal and processed food, under brand name Quick Treat. Ice-cream brand Vadilal has a legacy of 100+ years. It has a strong presence in north, west and east India.

Varun Beverages

PepsiCo India's bottling partner stock was down 23% as the production and distribution facilities have been temporarily shut down and will be operated as per the local guidelines. Varun Beverages is one of the largest franchisees in the world (outside the USA) for PepsiCo. The company has operations across 17 states and two union territories in India. The manufacturing footprint is well spread out and includes 17 units in India and four production facilities in international markets. Products manufactured by Varun Beverages include carbonated soft drinks - Pepsi, Mountain Dew, Seven Up, Mirinda; non-carbonated beverages - Tropicana Slice, Tropicana Frutz; and bottled water - Aquafina.


Voltas, a Tata Group company founded in 1954, has successfully evolved from a refrigeration and air-conditioning company into a fully-fledged mechanical, electrical and plumbing (MEP) contractor. The company’s key offerings include heating, ventilation, air-conditioning and refrigeration (HVAC&R) solutions, turnkey electromechanical projects (EMP), and room AC products. The stock plummeted 31.2% from March 02, 2020 to May 08, 2020 due to covid19 impact.


The heatwave is likely to be more towards the central and northern parts of India as per the IMD, and Symphony could be a major gainer as it is more into the cooler segment than the air conditioner. It also has a very good brand recall. However, this summers will get impacted by lockdown in the country. The Symphony management has said consumer footfalls dropped sharply in March, as malls, modern retail formats and small dealers in small towns started shutting operations. Transport and inland logistics services are disrupted. Even the e-commerce platform has stopped delivering non-essentials. Symphony is the leading manufacturer of evaporative air coolers in India, with a value market share of ~50% in the organized market.


Emami’s April- June quarterly volume growth likely to get impacted this summer due to the spread of Covid19.  Summer portfolio sales for products like Navratna Cool Oil, Talc and HE deodorant which contribute about 25% to the total portfolio on annualised basis may be impacted. The Emami Group is one of India’s leading consumer-goods companies, with a presence in niche categories such as ‘cooling oils, pain balms and antiseptic creams, with no competition from MNCs so far. The company also markets men’s fairness creams and ayurvedic OTC medicines.


Pidilite has a product that needs to be applied to roof and walls so that the walls absorb heat.  The halt on construction, repairs and maintenance activity in the country will impact the financial numbers of the company. The company’s product range includes adhesives and sealants, construction and paint chemicals, automotive chemicals, art materials, industrial adhesives, industrial & textile resins, and organic pigments and preparations. Consumer products form nearly 80% of Pidilite’s sales consisting of adhesives, construction and plant chemicals and art materials. Pidilite shares are down 10.6% from March 02, 2020 to May 08, 2020.


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PM Modi’s Economic Package: A Historic one and its Highlights

Atmanirbhar Bharat
by Nikita Bhoota 15/05/2020

Prime Minister (PM) Modi has announced Rs 20 lakh crore (10% of GDP) economic package on Tuesday (May 12, 2020) to fight Coronavirus (Covid 19) economic crisis. The economic package announced by the PM is one of the largest in the world.

Stimulus as % of GDP
Japan 21
US 13
Sweden 12.00
Germany 10.7
India 10
France 9.3
Spain 7.3
Italy 5.7
UK 5
China 3.8
South Korea 2.2

Source: Media Article

This 20 Lakh crore package announced by Indian Prime Minister already includes earlier announced measures to save the lockdown battled economy like 1.7 lakh crore package of free food grains to poor and cash to poor women and elderly, announced in March, as well as the Reserve Bank's liquidity measures and interest rate cuts of ~Rs  6.3 lakh crore. Hence, it seems that additional Rs. 12lakh crore will be pumped into the economy to overcome financial loss due to Covid19 pandemic. The package will focus on land, labour, liquidity and laws. It will cater to various sections, including the cottage industry, MSMEs (Micro, Small and Medium Enterprises), labourers, middle class, and industries.

Finance Minister (FM) Nirmala Sitharaman on Wednesday shared the first tranche of the incremental measures. It included 15 relief measures with six aimed for MSME segment. The focus was on providing liquidity and credit support to ensure that MSMEs and Smaller NBFCs are able to sustain this tough time.

We are laying down these measures announced on May 13, 2020

1) Distressed MSMEs.

a) Rs. 3 lakh crore “guarantee” towards emergency working capital facility for businesses, including MSME availed from NBFCs and Banks:  This is an automatic collateral-free loans for borrowers with up to Rs. 25crore outstanding and Rs100crore turnover, having 4-year tenure with a 12-month moratorium on interest payment. The facility availed can be up to 20% of entire outstanding credit as on 29 Feb 2020. This will benefit 45 lakh units so that they can resume work and save jobs.

b) Rs. 20,000 crore subordinate debt for stressed MSMEs and Rs. 50,000 crore for “Viable” MSME to be used for Equity Infusion:  The GOI will facilitate provision of Rs. 20,000 crore as subordinate debt and will provide a support of Rs. 4,000 Crore to Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

As for second part, a Fund of Fund with a corpus of Rs. 10,000 crore will be set up which will operate through a mother and few daughter funds. The setup will help these units increase capacity and help them list on Markets if they choose

2) Other Measures for MSMEs

a) New definitions: The investment limits have been revised upwards and additional criteria of turnover have been added. Micro units with investment till Rs 1 crore, turnover up to Rs 5 crore. Small units with investment till Rs 10 crore, turnover up to Rs. 50 crore. Medium units with investment till Rs 20 crore, turnover up to Rs 100 crore. At the same time, the distinction between manufacturing and services enterprises have been eliminated.

b) No global tenders for Government tenders (up to Rs. 200 Crore): To encourage MSMEs, global tenders will be not allowed in Government procurement tenders.


a) Rs. 30,000 crore special liquidity scheme: The Government will launch a special liquidity scheme where investments will be made in investment grade debt papers of NBFC/HFC/MFIs. The securities will be backed by GoI.

b) Rs. 45,000 crore Partial Credit Guarantee (PCG) scheme 2.0 for liabilities of NBFCs/MFIs: Existing PCG scheme is extended to cover the borrowings of lower rated NBFCs, HFCs and other MFIs. GoI will provide 20% first loss sovereign guarantee to Public Sector Banks.

4) EPF Support

a) Extending the EPF support: Payments (12% employer and 12% employee contribution) made in to EPF accounts of eligible establishments has been extended for another three months.

b) EPF Contribution reduced: EPF Contribution to be reduced for Employers and Employees to 10% from 12% for all establishments covered by EPFO for next three months

5) Liquidity injection for stressed DISCOMS: The government announced a Rs. 90,000 crore liquidity injection into fund-starved electricity distribution companies (discoms). State-owned Power Finance Corp. (PFC) and Rural Electrification Corp. (REC) will infuse the liquidity by raising Rs90,000 crore from the markets against the receivables of discoms. These funds will be then given to discoms against state government guarantees to discharge their liabilities.

6) Relief to Contractors: All central agencies like Railways, Ministry of Road Transport & Highways and CPWD will be providing extension of up to six months to complete projects. Also, the Government agencies will partially release bank guarantees to extent of completed work.

7) Relief to Real Estate Projects: State Governments are being advised to invoke the force majeure clause under RERA. The registration and completion date for all registered projects will be extended up to six months with further possible extension of three months based on the State’s situation.

8) Reduction in TDS /TCS: The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25% of the specified rates for the remaining period of FY 20-21.

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Stimulus Day-3 Puts the Entire thrust on “Jai Kissan”

Jai Kissan

Friday the 15th of May marked the third consecutive day when Nirmala Sitharaman addressed the press and announced a slew of measures to prepare the Indian economy for growth post COVID-19. Here is how the Stimulus panned out on the first three days of the stimulus roll out.

Day 1 and 2 focused on the building blocks

The first day of the stimulus announcement saw a sharp focus on the financial sector. The government offered leeway to NBFCs, micro finance institutions and housing finance companies. The first day also focused on the beleaguered MSME sector. These medium and small enterprises account for nearly 35% of GDP and over 50% of all exports. MSMEs also account for a bulk of the jobs created in India. However, Day 2 focused on the more vulnerable sections of the economy like the rural population, street vendors and migrant labour. The migrant labourers are an important link in the supply chain for most industries. Their getting back to work is crucial and that is what Day-2 largely focused on.

Day 3 moves its focus to the Indian farmer

COVID-19 and the lockdown had come when Indian agriculture was in a state of flux. The Kharif crop last year had been disappointing but had been more than compensated by the robust Rabi output. However, efforts had been undermined by the lack of proper post harvest infrastructure. Day 3 of the stimulus has focused on improving the condition of the farmer, enhancing rural demand and arresting supply bottlenecks. Here are the key announcements made on Day-3 by the finance minister.

1. Government proposed strict stock limits under exceptional circumstances like national calamities, famines, floods, epidemics etc to smoothen supply flows. This can avoid sharp spikes in price and the consequent impact on inflation.

2. Risk mitigation is the key to protecting farmers from the vagaries of weather and price. A new legal framework will allow farmers to engage with processors, aggregators, large retailers and exporters to ensure fair pricing and risk mitigation.

3. Announced Rs.13,433 crore fund to ensure 100% vaccination of 53 crore livestock in India. The humongous and aggressive vaccination program will go a long way in ensuring the health of cattle and the quality of output.

4. Free pricing has been a long standing demand of farmers. FM announced that cereals, edible oils, oilseeds, pulses, onions and potatoes will be deregulated. The Essential Commodities Act is to be amended for better price realisation.

5. Beekeeping gets official agriculture status with fund allocation of Rs.500 crore. This will enhance income for 2 lakh beekeepers and ensure quality honey supply. The multiplier effect will be an increase in yield with better quality of crops through pollination.

6. A special Rs.100,000 crore fund made available to entrepreneurs and start-ups to facilitate procuring from farmers and add value to the agri-value chain. This fund will be used to create the requisite agri infrastructure with private entrepreneurship.

7. The long standing gap has been post harvest infrastructure. FM has allocated Rs.1 trillion for FPOs for strengthening farm-gate infrastructure such as cold chains, transport, post harvest etc. This will reduce wastage and spoilage of crops.

8. FM allocated Rs.20,000 crore for fishermen through PMMSY Fund. The scheme will lead to additional fish production of 70 lakh tonnes over 5 years. Fisheries and dairy have been two segments that have been less cyclical.

9. Finance Minister also announced a new scheme to give concessional interest loans to dairy cooperatives. Interest subvention scheme will continue and put additional Rs.5000 crore in hands of 2 crore dairy farmers

India is the world’s largest producer of milk, jute and pulses. It is also the second largest producer of sugarcane, cotton, groundnut, fruits, vegetables and fisheries and the third largest producer of cereals. No economic relief package can be complete or meaningful unless it begins with the farmer and that has been the focus on Day-3!

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Do You Know sectors to Benefit from Joe Biden’s win?

Benefit from Joe Biden's Win
by Nikita Bhoota 11/11/2020

The markets have turned volatile in advance of the United States (U.S) election and continue to remain volatile post-election. The waves were felt not only in India but across the globe in the equity markets. Joe Biden is to be the 46th President of the U.S and it would certainly lift hopes of certain sectors back in India.

Certain industries that might get affected more than others with Biden’s victory.  Biden plans to spend roughly US $3.2 trillion over the next decade. His plan includes a spending budget of US $750 billion to improve healthcare and the US $750 billion to revamp education as per the media reports. The win of Joe Biden might not make any material difference in the long run, but in the near term.

We have gathered a list of sectors that are likely to benefit from Joe Biden victory as the U.S President.

Metal Stocks and Pharma stocks:

We expect metal stocks to benefit from Biden’s infrastructural push. Metal stocks could gain on the expectation of higher steel export to the U.S for additional infrastructure spending of ~$700-800 bn in the next 10 years.

The Indian Pharma sector is expected to benefit from the Biden win on the back of increased push for generic prescriptions and push to affordable health insurance. Biden plans to protect and strengthen The Affordable Care Act, which ensures a reduction in healthcare costs and access to health insurance for the U.S citizens. This implies more reliance on generic drugs and biosimilars, that would be positive news for Indian Pharma companies. As per the media reports, the U.S imports ~$7 billion worth of formulations from India annually. An increased scope for access to affordable health insurance would also boost the demand for generic drugs.

Electric Vehicle companies:

Biden in his campaign had made it clear that his administration’s focus will be on green energy. As per the media reports, Biden has promised $400 billion in public investment to transition to clean energy, including advanced battery technology and electric vehicles. Therefore, Shares of EV companies and the battery and the solar sectors would benefit from Biden’s win. Biden could also ease concerns about the trade war with China leading to a positive impact on global trade.

Real Estate, Financial Institutions:

A Biden win would mean a larger stimulus followed by additional means to improve healthcare access and other social welfare programs. Sectors that are likely to get impacted include real estate, financial institutions, student loans, etc.

Chemicals, Cement and IT sector

The Chemical sector which competes with China might have a positive impact as the U.S can take a tough stand against China. Similarly, the infrastructure push by Biden will benefit the cement industry.

The market experts have an opinion that visa restrictions for software engineers sent by Indian IT companies could ease. Trump has tightened norms for H-1B visas, mostly used by software services providers to send engineers for on-site work. That prompted IT companies to ramp up hiring local talent in the past three years, increasing costs in the market that contributes 50-65% of the revenue for India’s five largest IT firms. A Biden presidency is, however, seen to be less hostile to immigrants.


U.S elections are likely to lead to short-term market swings that will be insignificant over the longer run.  Therefore, we recommend the investors to stick to their long-term strategy and stay focused on individual stocks.

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Aditya Birla Sun Life AMC IPO Subscription Day 2

Aditya Birla Sun Life AMC IPO subscription Day 2
by 5paisa Research Team 29/01/2021

The Rs.2,768.26 crore IPO of Aditya Birla Sun Life AMC Ltd, consisting entirely of an offer for sale (OFS) of Rs.2,768.26 crore, was just about fully subscribed on Day-2. As per the combined bid details put out by the BSE, Aditya Birla Sun Life AMC Ltd IPO was subscribed 1.07X overall, with bulk of the demand coming from the retail segment. The issue closes on Friday, 01st October.

As of close of 30th September, out of the 277.99 lakh shares on offer in the IPO, Aditya Birla Sun Life AMC Ltd saw bids for 298.73 lakh shares. This implies an overall subscription of 1.07X. The granular break-up of subscriptions were tilted in favour of retail investors but HNI and QIB bids typically come in only on the last day of the IPO.

Aditya Birla Sun Life AMC Ltd IPO Subscription Day-2



Subscription Status
Qualified Institutional (QIB) 0.06 Times
Non-Institutional (NII) 0.40 Times
Retail Individual 2.00 Times
Others 0.67 Times
Total 1.07 Times


QIB Portion

On 28 September, Aditya Birla Sun Life AMC Ltd did an anchor placement of 110.81 lakh shares at the upper end of the price band of Rs.712, raising Rs.789 crore. The list of QIB investors included a number of FPI names like HSBC, IMF, ADIA, Morgan Stanley, Societe Generale etc. It included domestic institutions like ICICI Pru MF, HDFC MF, SBI MF, Axis MF, SBI Life, HDFC Life, Kotak MF, IIFL Special Opportunities Fund and Abakkus Growth Fund. 

The QIB subscription continued to see negligible subscription at the end of Day-2. The QIB portion (net of anchor allocation of 110.81 lakh shares as above) had a quota of 73.87 lakh shares of which it has got bids for just 4.53 lakh shares, implying a subscription of 0.06X by QIBs at the end of Day-1. QIB bids typically get bunched on the last day, although the anchor response does indicate strong interest in the issue from institutional investors.

HNI Portion

The HNI portion got subscribed 0.40X (getting applications for 22.06 lakh shares against the quota of 55.40 lakh shares). This is an OK response on Day-2 for the HNI segment and could be due to the large size of the IPO. Bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better. 

Retail Individuals

The retail portion was fully subscribed 2.00X at the end of Day-2, showing strong retail appetite. For retail investors; out of the 129.28 lakh shares on offer, valid bids were received for 259.04 lakh shares, which included bids for 201.60 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.695-Rs712) and will close for subscription on 01st October.

Also Read:-

Aditya Birla Sun Life AMC IPO : 7 Things to Know About

Upcoming IPOs in 2021

List of Upcoming IPOs in October 2021

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IIFL Finance NCD - All you need to know

by Mrinmai Shinde 04/03/2021

IIFL Finance Ltd has launched IIFL Bonds, a Non-Convertible Debenture (NCD) issue of up to ₹1,000 crore, offering an effective yield of up to 10.03%. This latest issue of unsecured NCDs has a base size of ₹100 crore with a option to retain oversubscription of up to ₹900 crore. The funds raised through the issue would be used for onward lending, financing, and for repayment or prepayment of interest and principal of existing borrowings of the company apart from general corporate purposes. 

This issue has a long-term credit rating of AA/Negative by Crisil, AA+/Negative by Brickwork.

IIFL Group's non-banking finance arm, IIFL Finance Limited, is a systemically important Non-Banking Financial Company not accepting public deposits and engaged in the business of home and property loans, gold loans, loan against securities, SME business and micro-finance loans.. 

The promoters of the company are Mr. Nirmal Jain and Mr. Venkataraman Rajamani. As at 31st December 2020, the company’s consolidated assets under management was Rs 4,22,641.05 million. 

Issue Opens on 3rd March, 2021
Issue Closes on 23rd March, 2021
Registrar Link Intime India Pvt Limited
Allotment First Come First Served Basis
Listing On BSE Limited and National Stock
Exchange of India Limited
Issue Price ₹1,000 per NCD
Face Value ₹1,000 per NCD
Minimum Application ₹10,000/- only
Issue Size ₹10,000 million (₹1000 cr)
Nature Subordinated Redeemable Bonds
Credit Ratings CRISIL AA/Negative and
Brickwork AA+/Negative
Tenor 87 Months
Payment Frequency Monthly, Annually, At Maturity


What is NCD? 

NCD, also known as Non-convertible debentures, is a fixed income product that offers far better returns when compared with Fixed Deposits or convertible debentures. They are usually issued by high-rated companies in the form of a public issue to accumulate long-term capital appreciation. Investing in NCDs helps you earn better returns, offers the liquidity, is a low-risk instrument and offers tax benefits when compared to convertible debentures.

Why IIFL Bonds 2021?

1. IIFL Bonds offer annualized returns of 10% p.a., which means you can double your money in 87 months.

2. Offers monthly, yearly and cumulative income options

3. Rated AA by CRISIL, which indicates high degree of safety regarding timely servicing of financial obligations

4. No TDS on interest income

5. These bonds will be listed on NSE & BSE

How to Invest in IIFL NCD?

1. Visit

2. Enter your UPI Id.

3. Enter the quantity of NCDs you wish to apply for. Total application amount should be between Rs.10,000 (10 NCDs) and           Rs.2,00,000 (200 NCDs)

4. Submit your application

5. You should receive an UPI mandate on your UPI app within approx. 2 hours, please authorize it.

Cilck here for more details